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HomeMy WebLinkAboutagenda.council.regular.20220913AGENDA CITY COUNCIL REGULAR MEETING September 13, 2022 5:00 PM, City Council Chambers 427 Rio Grande Place I.Call to Order II.Roll Call III.Scheduled Public Appearances IV.Citizens Comments & Petitions V.Special Orders of the Day ZOOM Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join. https://us06web.zoom.us/j/89423821473? pwd=YXpqbFYwdmV3Rnk5UFU0WjV3OVRVZz09 Passcode: 81611 Or join by phone: Dial(for higher quality, dial a number based on your current location): US: +1 719 359 4580 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kcmtoBhGIw (Time for any citizen to address Council on issues NOT scheduled for a public hearing. Please limit your comments to 3 minutes) a) Councilmembers' and Mayor's Comments b) Agenda Amendments c) City Manager's Comments d) Board Reports 1 VI.Consent Calendar VI.A Resolution #058, Series of 2022 - Contract with Tyler Technologies, Inc. for Tyler Enterprise ERP Office Utility Billing System VI.B Resolution #103, Series of 2022 - Intelligent Lighting Fixtures (Theatrical) for Wheeler Opera House VI.C Resolution #105, Series of 2022 – Purchase of Switchgear to Replace Puppy Smith Substation VI.D Resolution #108, Series of 2022 - Wheeler Opera House Website Redesign VI.E Resolution #109, Series of 2022 - City Attorney Contract VI.F Board & Commission Appointments VI.G Draft Minutes of August 23rd, 2022 VII.Notice of Call-Up VIII.First Reading of Ordinances IX.Public Hearings IX.A Ordinance #10, Series of 2022 - Willoughby Ponds Subdivision: Water Service Agreement X.Action Items X.A Resolution #099, Series of 2022 - Short-term Rental Program Guidelines XI.Adjournment (These matters may be adopted together by a single motion) 2 MEMORANDUM TO:Mayor Torre and City Council FROM:Cole Langford, Utilities Business Services Manager Lee Ledesma Utilities Finance Manager THROUGH:Tyler Christoff, Utility Department Director Sara Ott, City Manager MEMO DATE:September 2, 2022 MEETING DATE:September 13, 2022 RE:Resolution # 058, Series of 2022 -- Contract with Tyler Technologies, Inc. for Tyler Enterprise ERP Office Utility Billing System REQUEST OF COUNCIL: Staff requests a contract award to Tyler Technologies, Inc. in the amount of $162,148 for the implementation of the Tyler Enterprise ERP Office Utility Billing System (Tyler Enterprise). BACKGROUND: The City of Aspen Utilities Department (Utilities) manages and maintains our water and electric resources. It does so in a manner that efficiently meets or exceeds all related State and Federal standards while simultaneously driving the reduction of Aspen's greenhouse gas emissions and energy use through policy, outreach, energy efficiency and renewable energy programs. For nineteen years, Utilities has handled water and electric utility billing using Tyler Munis Classic software. The software has become outdated. Service for certain types of upgrades and support have become problematic to obtain, and the software lacks functions that would enhance billing efficiency and accuracy. By moving to a new billing system, Utilities will: Reduce billing errors and increase staff efficiency Provide an easy and intuitive platform for staff to manage multiple functions across the diverse demands of Utilities’ accounts Assure that office staff have immediate access to all the information they need, 24/7 Simplify and improve the customer service experience DISCUSSION: After extensive internal discussion of needs and requirements, Utilities issued an RFP in October 2021 to solicit proposals for a new utility billing system. A cross-functional team comprised of representatives from the Utilities Department, 3 2 Engineering, Finance, IT and Administrative Services reviewed and evaluated proposals from eight vendors. In evaluating the vendors, the review team considered: 1. Cost 2. Company and staff experience with similar projects 3. Project approach and timeline 4. Match between product functionality and system requirements 5. Product licensing, warranty and on-going support approach The team selected Tyler Enterprise as a replacement for Munis Classic after two rounds of interviews, demos and reference checks. Tyler Enterprise will improve integrations with other software systems (including Oracle, Paymentus (for online payments), and Sensus (the AMI software), while offering a broader range of billing process automations and reporting capabilities. Additionally, Tyler Enterprise will provide new functionality to manage utility service order requests; manage and monitor backflow devices inspections; and share information with permit review staff. FINANCIAL/BUDGET IMPACTS: Staff recommends awarding the software contract to Tyler Technologies, Inc. for Tyler Enterprise based on their qualifications and responsiveness to the Invitation to Bid. The proposed project funding and expenditures are outlined below: Total Proposed Project Expenditures Tyler Enterprise ERP Office and Professional Services Contract:$ 162,148.00 Total Proposed Project Expenditures $ 162,148.00 This total is well within the funding currently budgeted for this project: Total Funding Budgeted Utilities 2021 Funding Project 51311 $ 345,000.00 Additional budget impacts include annual maintenance costs in the amount of $53,000, a low-cost solution based on current software market trends and competing bids received during this RFP process. Utilities department currently pays $12,230 per year for Munis Classic, a city-hosted solution covering support and licensing for business objects, interfaces, and Munis Office. The additional costs for the new Munis CIS software solution in the amount of $40,770 offers a cloud-based solution with expanded utility customer features including an all new customer self-serve portal and ability for the utility to send text message alerts to all customers or a specific group of customers. The annual maintenance cost also includes expanded integration with Oracle ERP and our new Sensus Advanced Metering Infrastructure, (AMI). The new Munis CIS software will also comprise a complete accounts receivable and revenue management module allowing all utility-related revenue to pass through this software and general ledger as requested by Finance department. A 2023 base budget supplemental for this referenced annual maintenance cost will be presented to Council during the fall budget process. 4 3 ENVIRONMENTAL IMPACTS: This acquisition continues the Utility Department’s commitment to providing online, paperless solutions for staff and customers. In addition, the software is robust enough to support any new actions on rates and policies the City may take in the pursuit of energy and water conservation and efficiency. ALTERNATIVES: The alternative is to continue to use the existing Munis Classic software. RECOMMENDED ACTION: Staff requests the Council approve the contract with Tyler Technologies, Inc. for $162,148 for the Tyler Enterprise utility billing software system and associated professional services. CITY MANAGER COMMENTS: ATTACHMENTS Exhibit A: Contract with Tyler Technologies for Tyler Enterprise ERP Office Utility Billing System Exhibit B: Resolution #058, Series of 2022 5 ATTACHMENT B RESOLUTION #058 (Series of 2022) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT BETWEEN TYLER TECHNOLOGIES, INC. AND THE CITY OF ASPEN FOR SOFTWARE AND PROFESSIONAL SERVICES, AUTHORIZING THE CITY MANAGERTO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO WHEREAS, there has been submitted to the City Council a not-to-exceed contract between the City of Aspen and Tyler Technologies, Inc. which is attached hereto as Attachment A in the amount of $162,148 for professional services and fees associated with the Tyler Enterprise ERP Office SaaS product; 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 the contract between the City and Tyler Technologies, Inc., a copy of which is incorporated herein, for $162,148 and hereby does authorize the City Manager to execute said agreement on behalf of the City of Aspen INTRODUCED AND READ AND ADOPTED BY THE City Council of the City of Aspen on the 13th day of September 2022. _______________________________________________ Torre, Mayor I, Nicole Henning, 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, September 13, 2022. _______________________________________________ Nicole Henning, City Clerk 6 PSSA PAGE -1 CITY OF ASPEN STANDARD FORM OF AGREEMENT V 2009 PROFESSIONAL SERVICES AND SOFTWARE AGREEMENT City of Aspen Contract No.: 2021-250 AGREEMENT made as of 13th day of September, in the year 2022 BETWEEN the City: Contract Amount: The City of Aspen c/o Tyler Christoff 130 South Galena Street Aspen, Colorado 81611 Phone: (970) 920-5118 And Tyler: Company legal name: Tyler Technologies, Inc. Company contact: Rob Kennedy-Jensen Address: One Tyler Dr Address: Yarmouth, ME 04096 Phone: 800-772-2260 For the Following Project: Software, support and professional services for conversion to new utility billing system (Tyler Technologies Enterprise ERP Office) Exhibits appended and made a part of this Agreement: If this Agreement requires the City to pay an amount of money in excess of $50,000.00 it shall not be deemed valid until it has been approved by the City Council of the City of Aspen. City Council Approval: Date: 09/13/2022 Resolution No.058, Series of 2022 Exhibit A: Scope of Work, including System Requirements Exhibit B: Fee Schedule Exhibit C: Tyler SaaS Agreement Exhibit D: Tyler Service Level Agreement (SLA) Exhibit E: Tyler Travel and Reimbursement Policy Exhibit F: Tyler Invoicing Policy Total: $162,148 For Professional services and first year costs for Tyler Enterprise ERP Office DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 7 PSSA PAGE -2 The City and Tyler (Tyler Technologies, Inc.) agree as set forth below. 1. Scope of Work. Tyler shall perform services in accordance with the requirements of this Agreement, including as set forth at Exhibit A and shall provide ongoing SaaS services and support as outlined in Exhibits C and D attached hereto and by this reference incorporated herein. 2. Standards of Performance. (a) Standards for Completion of Professional Services. Tyler is obligated to provide the services itemized in Exhibit B in accordance with the Scope of Work included in this contract in Exhibit A. Tyler shall commence servicesupon execution of a executed agreement and receipt of a written Notice to Proceed from the City and complete all phases of the Scope of Work in accordance with the mutually developed project plan. The parties anticipate that the Scope of Work shall be completed in accordance with the project plan. Upon request of the City, Tyler shall submit, for the City's approval, a schedule for the performance of Tyler's services, which shall be adjusted by mutual agreement as required as the project proceeds, and which shall include allowances for periods of time required by the City's project manager for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This schedule, when approved by the City, shall not, except for reasonable cause, be exceeded by Tyler. Except as may otherwise be provided in the Scope of Work, the City shall have the right to promptly test and inspect whether each deliverable due under the Scope of Work conforms to the requirements of this Agreement in all material respects. If a Deliverable does not so conform, the City must give Tyler notice describing the non-conformity (“Rejection Notice”). The City will provide such Notice within an agreed upon Test Period for each deliverable, the time period of which will be jointly agreed to by the City and Tyler for each deliverable. The City will in a timely manner collaborate with Tyler to establish an Extension to the Test Period should it be anticipated that the originally agreed to Test Period will be insufficient for any reason. Tyler shall not unreasonably withhold such an Extension of a Test Period. Should no Extension of the Test Period be requested by the City within the originally agreed to Test Period or a subsequent Extension of the Test Period and should no Reject Notice be received by Tyler from the City within the agreed upon Test Period or a subsequent Extension Test Period, then the deliverable will be considered to be accepted. A Request for Extension or a Rejection Notice shall be deemed to be delivered to Tyler at the date and time it is emailed from the City to Tyler. Upon receipt of a Rejection Notice, Tyler will use commercially reasonable efforts to cause the Deliverable to conform to the Specifications in all material respects. The project timelines set forth in this Contract assume that the City and Tyler will proceed with reasonable efforts to provide timely deliverables, and provide timely and reasonable feedback, decision-making, access, resources and other such support as may be needed to successfully complete the Scope of Work. Failure to provide such support, on the part of either party, may impact the timing of the project. Tyler will not be responsible for nonconformities arising from inaccurate, inauthentic or incomplete data or information provided by or through the City, or for failures or delays arising from lack of cooperation. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 8 PSSA PAGE -3 Tyler warrants the quality and functionality of its work as described in Section 26 below. Nothing in this paragraph shall be deemed to excuse Tyler from any liability or consequences due to negligence or from the responsibility of any other section of this Contract. The final deliverables to be provided by the Tyler shall conform to the specifications described in Exhibit A (the Statement of Work) and other mutually approved documents, if any, developed in the course of this project to detail final specifications and agreements for work. Where deliverables, are reported as not conforming to the applicable specifications, the Tyler shall correct all such non- conformances that are reported to Tyler within the period of time indicated in the SOW unless a different time period is mutually agreed upon in writing by the City and Tyler. (b) Standards for SaaS. The terms and standards for the ongoing use of Tyler software as a service (SaaS) are detailed in Exhibit C (SaaS Agreement). (c) Standards for Ongoing System Support. The terms and standards for ongoing support for the Tyler SaaS software are detailed in Exhibit D (Service Level Agreement). (d) Impact of Force Majeure. Except for the City’s payment obligations, neither party will be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure; provided, however, that within ten (10) business days of the Force Majeure event, the party whose performance is delayed provides the other party with written notice explaining the cause and extent thereof, as well as a request for a reasonable time extension equal to the estimated duration of the Force Majeure event. 3. Payment. (a) Invoices. In consideration of the professional services and SaaS fees, City shall pay Tyler as provided in Exhibit B. The fees shall not exceed those rates set forth in Exhibit B appended hereto, and will be paid according to the schedule outlined in Exhibit B. Tyler shall submit, in timely fashion, invoices for work performed and SaaS fees due. Invoices must include a description for each line item charged Invoices shall be paid 45 days from the invoice date. (b) Disputed Fees (“Invoice Dispute Process”). If the City believes any invoice is in error or that any delivered software or service does not conform to the requirements and warranties in this Agreement, the City will provide the Tyler with written notice within thirty (30) days of receipt of the applicable invoice. The written notice must contain reasonable detail of the issues the City contends are in dispute so that the Tyler can confirm the issue and respond to the notice with either a justification of the invoice, an adjustment to the invoice, or a proposal addressing the issues presented in the notice. The Tyler will work with the City as may be necessary to develop an action plan that outlines reasonable steps to be taken by each party to resolve any issues presented in the City’s notice. The City will withhold payment of the amount(s) actually in dispute, and only those amounts, until the Tyler has completed the action items outlined in the plan. If Tyler is unable to complete the action items outlined in the action plan because of the City’s failure to complete the items agreed to be done by the City, then the City will remit full payment of the invoice. Tyler reserves the right to suspend delivery of all SaaS Services, including maintenance and support services, if the City fails to pay an invoice not disputed as described above within fifteen (15) days of notice of the Tyler’s intent to suspend services. 4. Fund Availability. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 9 PSSA PAGE -4 Financial obligations of the City payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. If this Agreement contemplates the City utilizing state or federal funds to meet its obligations herein, this Agreement shall be contingent upon the availability of those funds for payment pursuant to the terms of this Agreement. In the event that funds are not available, the City agrees to provide Tyler with thirty (30) days’ notice of termination and otherwise comply with the termination provisions of this Agreement. 5. Assignability. Both parties recognize that this Agreement cannot be transferred, assigned, or sublet by either party without prior written consent of the other, except to its wholly owned subsidiaries. Sub contracting, if authorized, shall not relieve Tyler of any of the responsibilities or obligations under this Agreement. The foregoing notwithstanding, City’s consent is not required for an assignment by Tyler as a result of a corporate reorganization, merger, acquisition, or purchase of substantially all of Tyler’s assets. The City shall not be obligated to pay or be liable for payment of any sums due which may be due to any subcontractor. Tyler shall fully inform each of its permitted subcontractors hereunder of all of the provisions and requirements of this Agreement relating to the work to be performed and/or the services or materials to be furnished under such subcontract. Without limiting the generality of the foregoing, Tyler will not disclose any confidential information of the City to any third party subcontractor unless and until such subcontractor has agreed in writing to protect the confidentiality of such confidential information in a manner that is no less restrictive than that required of Tyler under this Agreement, and then only to the extent necessary for such subcontractor to perform the services subcontracted to it. 6. Successors and Assigns. This Agreement and all of the covenants hereof shall inure to the benefit of and be binding upon the City and Tyler respectively and their agents, representatives, employee, successors, assigns and legal representatives. 7. Third Parties. This Agreement does not and shall not be deemed or construed to confer upon or grant to any third party or parties, except to parties to whom Tyler or City may assign this Agreement in accordance with the specific written permission, any right to claim damages or to bring any suit, action or other proceeding against either the City or Tyler because of any breach hereof or because of any of the terms, covenants, agreements or conditions herein contained. Nothing in this section shall be construed to alter, void, nullify, or otherwise modify the terms, conditions, restrictions, or obligations the DocOrigin EULA in Exhibit C of this Agreement. 8. Termination. Termination of SaaS services will occur according to the provisions of Exhibit C (the SaaS Agreement). The City may terminate the Professional Services component of this Contract for breach for good cause and after following the Dispute Resolution Process of this Contract. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 10 PSSA PAGE -5 The parties agree that on the termination of the provision of the services, Tyler shall, at the choice of the City, return all the personal data transferred, including any data storage media supplied to Tyler, and the copies thereof to the City or shall destroy all the personal data and certify to the City that it has done so, unless legislation imposed upon Tyler prevents it from returning or destroying all or part of the personal data transferred. In that case, Tyler warrants that it will ensure the confidentiality of the personal data transferred in accordance with the terms of this Agreement and will not actively process the personal data transferred anymore. 9. Cancellation of Onsite Services Including Travel. If travel is required, Tyler will make all reasonable efforts to schedule travel for its personnel, including arranging travel reservations, at least two (2) weeks in advance of commitments. Therefore, if the City cancels services involving travel less than two (2) weeks in advance (other than for Force Majeure or breach by the Tyler), the City will be liable for (i) applicable services fees for the cancelled services and (ii) all non-refundable expenses incurred by Tyler on the City’s behalf, and will make arrangements to conduct the services remotely instead. 10. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this agreement shall result in or be construed as establishing an employment relationship. Tyler shall be, and shall perform as, an independent Contractor. No agent, employee, or servant of Tyler shall be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this contract. The manner and means of conducting the work are under the sole control of Tyler. None of the benefits provided by City to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Tyler. Tyler shall be solely and entirely responsible for its acts and for the acts of Tyler's agents, employees, servants and subcontractors during the performance of this contract. 11. Indemnification and Liability Limits. See Exhibit C, Section F. 12. Tyler’s Insurance. (a) Tyler agrees to procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against liability, claims, demands, and other obligations of Tyler pursuant to Section 14 below (Completeness of Agreement). Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. Tyler shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 11 (Indemnification) above by reason of its failure to procure or maintain insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. (b) Tyler shall procure and maintain the minimum insurance coverages listed below. Such coverages shall be procured and maintained with a carrier(s) with a minimum AM Best rating of A-:VII . In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 11 PSSA PAGE -6 (i) Worker's Compensation insurance to cover obligations imposed by applicable laws for any employee engaged in the performance of work under this contract, and Employers' Liability insurance with minimum limits of ONE MILLION DOLLARS ($1,000,000.00) for each accident, ONE MILLION DOLLARS ($1,000,000.00) disease - policy limit, and ONE MILLION DOLLARS ($1,000,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted for the Worker's Compensation requirements of this paragraph. (ii) Commercial General Liability (CGL) insurance with minimum combined single limits of ONE MILLION DOLLARS ($1,000,000.00) each occurrence. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), products, and completed operations. The policy shall contain a severability of interests provision. (iii) Comprehensive Automobile Liability insurance with minimum combined single limits for bodily injury and property damage of not less than ONE MILLION DOLLARS ($1,000,000.00) combined single limit a with respect to each Tyler's owned, hired and non-owned vehicles assigned to or used in performance of the Scope of Work. The policy shall contain a severability of interests provision. If Tyler has no owned automobiles, the requirements of this Section shall be met by each employee of Tyler providing services to the City under this contract. (iv) Professional Liability insurance with the minimum limits of ONE MILLION DOLLARS ($1,000,000) each claim (v) Excess/Umbrella Liability insurance of at least $5,000,000 (c) The CGL and auto policies required above shall be endorsed to include the City and the City's officers and employees as additional insureds or shall provide evidence that the City and the City’s officers and employees are otherwise insured as part of a blanket endorsement clause. Every policy required above shall be primary insurance claims under Tyler’s CGL or auto policies that arise out of or relate to the Agreement and are between Tyler and City, and any insurance carried by the City, its officers or employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Tyler. Tyler shall be solely responsible for any deductible losses under any policy required above. (d) The certificate of insurance provided to the City shall be completed by Tyler's insurance agent as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect,. (e) Failure on the part of Tyler to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute grounds for pursuing termination of the Agreement for a material breach. City shall follows the requirements of this Agreement as it would for other terminations for breach. (f) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this Agreement, the monetary limitations (presently $350,000.00 per person and $990,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 12 PSSA PAGE -7 13. City's Insurance. The parties hereto understand that the City is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA Property/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Risk Management Department and are available to Tyler for inspection during normal business hours. City makes no representations whatsoever with respect to specific coverages offered by CIRSA. City shall provide Tyler reasonable notice of any changes in its membership or participation in CIRSA. 14. Completeness of Agreement. It is expressly agreed that this agreement contains the entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or written representations, agreements, warranties or promises pertaining to the project matter thereof not expressly incorporated in this writing. If any of the provisions of this Agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. 15. Waiver. The waiver by the City or Tyler of any term, covenant, or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be waived except by the written consent of the City or Tyler, as applicable, and forbearance or indulgence by the City or Tyler, as applicable, in any regard whatsoever shall not constitute a waiver of any term, covenant, or condition to be performed by the other party to which the same may apply and, until complete performance by other party of said term, covenant or condition, the first party shall be entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or indulgence. 16. Integration and Modification. This written Agreement along with the Exhibits shall constitute the Contract between the parties and supersedes or incorporates any prior written and oral agreements of the parties. The parties acknowledge and understand that there are no conditions or limitations to this understanding except those as contained herein at the time of the execution hereof and that after execution no alteration, change or modification shall be made except upon a writing signed by the parties. Modifications to the Statement of Work (Change Orders or Contract Amendments) shall be mutually agreed upon in writing between the parties and will be governed by the terms and conditions of this Agreement. Changes in scope will include modifications to the Statement of Work and any applicable payments, with the exception of clarifications of the details of the scope, or substantially equal substitutions. If additional work is required, or if the City uses or request additional services, Tyler will provide the City with an addendum or change order, as applicable, outlining the costs for the additional work. The price quotes in the addendum or change order will be valid for thirty (30) days from the date of the quote. Tyler shall not be obligated to provide the work required by a change in the Statement of Work until such time as a change order is agreed to in writing by both Tyler and the City. Any work outside the DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 13 PSSA PAGE -8 scope of the agreement and done so prior to the mutual agreement in writing of a change order is done at Tyler’s sole expense. 17. Notice. Any written notices as called for herein may be hand delivered or mailed by certified mail return receipt requested to the respective persons and/or addresses listed herein: Tyler Technologies City of Aspen Attn: Chief Legal Officer Attn: Tyler Christoff Address: One Tyler Dr. 427 Rio Grande Plaza Address: Yarmouth, ME 04096 Aspen, CO 81611 Email: Nonetyler.christoff@aspen.gov 18. Worker Without Authorization – CRS §8-17.5-101 & §24-76.5-101 Purpose. During the 2021 Colorado legislative session, the legislature passed House Bill 21-1075 that amended current CRS §8-17.5-102 (1), (2)(a), (2)(b) introductory portion, and (2)(b)(III) as it relates to the employment of and contracting with a “worker without authorization” which is defined as an individual who is unable to provide evidence that the individual is authorized by the federal government to work in the United States. As amended, the current law prohibits all state agencies and political subdivisions, including the Owner, from knowingly hiring a worker without authorization to perform work under a contract, or to knowingly contract with a Consultant who knowingly hires with a worker without authorization to perform work under the contract. The law also requires that all contracts for services include certain specific language as set forth in the statutes. The following terms and conditions have been designed to comply with the requirements of this new law. Definitions. The following terms are defined by this reference are incorporated herein and in any contract for services entered into with the Owner. .1 "E-verify program" means the electronic employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, that is jointly administered by the United States Department of Homeland Security and the social security Administration, or its successor program. .2 "Department program" means the employment verification program established pursuant to Section 8-17.5-102(5)(c). .3 "Public Contract for Services" means this Agreement. .4 "Services" means the furnishing of labor, time, or effort by a Consultant or a subconsultant not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. .5 “Worker without authorization” means an individual who is unable to provide evidence that the individual is authorized by the federal government to work in the United States By signing this document, Consultant certifies and represents that at this time: DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 14 PSSA PAGE -9 1. Consultant shall confirm the employment eligibility of all employees who are newly hired for employment to perform work under the Public Contract for Services; and 2. Consultant has participated or attempted to participate in either the e verify program or the department program in order to verify that new employees are not workers without authorization. Consultant hereby confirms that: 1. Consultant shall not knowingly employ or contract with a worker without authorization to perform work under the Public Contract for Services. 2. Consultant shall not enter into a contract with a subconsultant that fails to certify to the Consultant that the subconsultant shall not knowingly employ or contract with a worker without authorization to perform work under the Public Contract for Services. 3. Consultant has confirmed the employment eligibility of all employees who are newly hired for employment to perform work under the public contract for services through participation in either the e-verify program or the department program. 4. Consultant shall not use the either the e-verify program or the department program procedures to undertake pre-employment screening of job applicants while the Public Contract for Services is being performed. If Consultant obtains actual knowledge that a subconsultant performing work under the Public Contract for Services knowingly employs or contracts with a worker without authorization, Consultant shall: 1. Notify such subconsultant and the Owner within three (3) days that Consultant has actual knowledge that the subconsultant is employing or subcontracting with a worker without authorization: and 2. Terminate the subcontract with the subconsultant if within three (3) days of receiving the notice required pursuant to this section the subconsultant does not stop employing or contracting with the worker without authorization; except that Consultant shall not terminate the Public Contract for Services with the subconsultant if during such three (3) days the subconsultant provides information to establish that the subconsultant has not knowingly employed or contracted with a worker without authorization. Consultant shall comply with any reasonable request by the Colorado Department of Labor and Employment made in the course of an investigation that the Colorado Department of Labor and Employment undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5- 102 (5), C.R.S. If Consultant violates any provision of the Public Contract for Services pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the Owner may terminate this Agreement in accordance with its terms. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 15 PSSA PAGE -10 It is agreed that neither this agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. If any of the provisions of this agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. 19. Confidentiality and Proprietary Rights. The terms of confidentiality as specified in Exhibit C, the SaaS Agreement, apply, in addition to the terms below. In the case of a conflict or omission, the terms here take precedence: Certain information furnished or disclosed by Tyler or the City (the “Disclosing Party”) to the other (the “Receiving Party”) in connection with the performance of their respective obligations under this Agreement may contain or reflect confidential information with respect to the disclosing party. "Confidential Information" means all information disclosed by the Disclosing Party to the Receiving Party under this Agreement that is clearly marked or otherwise clearly designated as “confidential” or that is or should reasonably be understood by the Receiving Party to be confidential. The Disclosing Party’s Confidential Information shall not include any information that: (i) is or becomes part of the public domain through no act or omission of the other party; (ii) the Receiving Party can demonstrate was in its lawful possession prior to the disclosure and had not been obtained by it either directly or indirectly from the Disclosing Party; (iii) the Receiving Party can demonstrate was independently developed by the Receiving Party without access to the party’s Confidential Information; or (iv) the Receiving Party can demonstrate was received from a third party without breach of any confidentiality obligation. To the extent permitted by public disclosure laws, the Receiving Party agrees to hold the Disclosing Party’s Confidential Information in strict confidence, not to disclose such Confidential Information to third parties not authorized by the Disclosing Party to receive such Confidential Information, and not to use such Confidential Information for any purpose except to perform its obligations under this Agreement. The foregoing prohibition on disclosure of Confidential Information shall not apply to the extent Confidential Information is required to be disclosed by the Receiving Party as a matter of law or by order of a court, provided that: (i) the Receiving Party provides the Disclosing Party with prior notice of such obligation to disclose to allow the Disclosing Party to obtaining a protective order from such disclosure; and (ii) the Receiving Party only discloses that portion of Confidential Information which it reasonably believes, based on the advice of counsel, is required to be disclosed. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 16 PSSA PAGE -11 20. Technical Support and Personnel. (a) Representative: Tyler and City shall each appoint appropriate representatives to deal with operational services and transitions as may be necessary for the purpose of implementing this Agreement. (b) Personnel. Tyler’s personnel providing services under this Agreement shall (i) be adequately trained and skilled to perform its obligations under this Agreement and (ii) possess at least such training, knowledge and experience as is regarded as industry standard in the provision of the tasks to which they are assigned. The City reserves the right to request new personnel for good cause at any point during the project. Tyler has the absolute right to remedy the alleged cause(s). In the event the cause is not addressed, Tyler shall provide replacement personnel, and Tyler shall bear the cost to train and/or familiarize new personnel regardless of the circumstances for having to do so. 21. Work Phases. The details of the work associated with each phase, along with the deliverables and the duration/delivery dates, are defined in Exhibit A, the Statement of Work. 22. Tyler’s Responsibilities. • To appoint suitable Project Manager(s) and team of consultants as required for the project. • To adhere to the time schedules. • To obtain sign-off/acceptances from the City as indicated in this Agreement or the project pan; • To report the ongoing status of the project to the City as indicated in the mutually agreed project plan. • To assure that deliverables are ready for user testing prior to sending them to the City 23. City’s Responsibilities. • To identify and depute suitable person (s) for coordination with Tyler; • To adhere to the time schedules; • • To provide information to Tyler pertaining to City organization, procedures, and existing systems wherever applicable. • To provide full and free access to City personnel, facilities, and equipment as may be reasonably necessary for Tyler to provide implementation services, subject to any reasonable security protocols or other written policies provided to Tyler as of the Effective Date, and thereafter as mutually agreed to by the City and Tyler • To inform Tyler immediately about any factors possibly affecting the scope of the project or its successful implementation. • To protect Tyler proprietary information • To prepare the acceptance plan in accordance with this Agreement and perform acceptance testing • To communicate testing success or rejection in a timely manner, per the parameters of Section 2 of this agreement DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 17 PSSA PAGE -12 24. Joint Responsibilities. • To conduct joint reviews of the project at the mutually agreed stages. • To reasonably co-operate and ensure timely, free flow of information • Additional joint responsibilities as specified in Exhibit A, Statement of Work, particularly with respect to communication and project management 25. System and Network Security, Access, Software and Tools. (a) Data Security Breaches and Reporting Procedures The City is required by Colorado Statutes (CRS 6-1-716) to notify its residents of a Data Security Breach involving their personal identifying information. Tyler is under a strict obligation to notify the City of a Data Security Breach if and as required by applicable Colorado law. In the event of a Data Security Breach at City’s location, City will alert Tyler about the incident within 24 hours of the City becoming aware of the breach. The City will work with Tyler to determine if any additional security controls are to be implemented. This provision does not preclude the City from seeking a remedy via court in the State of Colorado. (b) Resolution of disputes regarding Personal Data In the event of a dispute or claim concerning the processing of Personal Data against either or both parties, the Parties will inform each other about any such disputes or claims and will cooperate with a view to settling them amicably in a timely fashion and otherwise in accordance with the terms of this Agreement. The Parties agree to respond to any generally available non-binding mediation procedure initiated by either of the parties. If they do participate in the proceedings, the parties may elect to do so remotely (such as by telephone or other electronic means). The Parties also agree to reasonably consider participating in any other arbitration, mediation or other dispute resolution proceedings developed for data protection disputes. Each Party shall abide by a decision of a competent court in the State of Colorado. 26. Warranties. Generally, Tyler warrants that a) all work performed in connection with Exhibit A was performed in a competent, professional and workmanlike manner, and of industry standard quality; b) all work performed and all deliverables comply with applicable laws; and c) all work performed and all deliverables were provided in accordance with and confirm in all materials respects to all specifications and requirements set forth in this agreement and any associated Change Orders; and that. Tyler agrees to complete all testing needed to verify accurate and complete functioning, and to repair all Defects per the terms of the SaaS Agreement (Exhibit C). (a) Acceptance Criteria These criteria will be used by the City to guide its decision-making regarding whether to reject deliverables, including software functionality and security, but may not be the only basis upon which rejection occurs. The acceptance criteria include: DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 18 PSSA PAGE -13 • Successful (error-free) execution of all functional test cases developed for acceptance testing. • Successful (defect-free) completion of all agreed-upon requirements in Exhibit A, and in any other documents agreed to and signed in the course of this project. • System response times that are reasonable, such that time-out or other errors are avoided and significant delays in processing do not otherwise occur. • Successful passing of system security tests, as initiated by or requested by the City. • Successful passing of tests related to individual user permissions and security. • System stability, as reflected by consistent performance and results over time The intention of the above Acceptance Criteria is to more specifically capture the attributes of a system that is functioning without defects. (b) Pursuing Warranty Remedies. To receive warranty remedies, the City must report any deficiencies to Tyler per the provisions of this PSSA and Exhibits C and D. 27. General Terms. a. Non-Discrimination. No discrimination because of race, color, creed, sex, marital status, affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or religion shall be made in the employment of persons to perform services under this Agreement. b. Warranties Against Contingent Fees, Gratuities, Kickbacks and Conflicts of Interest. i. Tyler warrants that no person or selling agency has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by Tyler for the purpose of securing business. ii. Tyler agrees not to give any employee of the City a gratuity or any offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to this Agreement, or to any solicitation or proposal therefore. iii. In addition to other remedies, it may have for breach of the prohibitions against contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right to: 1. Terminate this Agreement in accordance with its terms; 2. Debar or suspend the offending parties from being a professional, contractor or subcontractor under City contracts; 3. ; and 4. Recover such value from the offending parties. c. Dispute Resolution Process. The City agrees to provide Tyler with written notice within thirty (30) days of becoming aware of a dispute. The City agrees to cooperate with Tyler in trying to reasonably resolve all disputes, including, if requested by either party, appointing a DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 19 PSSA PAGE -14 senior representative to meet and engage in good faith negotiations with our appointed senior representative. Senior representatives will convene within thirty (30) days of the written dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or any similar applicable state rule. If senior representatives fail to resolve the dispute, then the parties shall participate in non-binding mediation as described in Section 29 (d) below in an effort to resolve the dispute. If the dispute remains unresolved after mediation, then either party may assert their respective rights and remedies in a Colorado court. Nothing in this section shall prevent either party from seeking necessary injunctive relief during the dispute resolution procedures. d. Mediation: Prior to pursuing other legal remedies (i), all disputes shall be submitted to non- binding mediation by written notice given by either Party to the other Party. Except as otherwise expressly provided herein, the mediation process will be conducted under the American Arbitration Association’s (the "AAA") Commercial Arbitration Rules and Mediation Procedures (including Procedures for Large, Complex Commercial Disputes) (collectively the "AAA Rules"). If the Parties cannot agree on a mediator, a mediator will be designated by the AAA at the request of a Party. The mediation shall be conducted in Colorado. The mediation will be treated as a settlement discussion and therefore will be confidential. The mediator may not testify for either Party in any later proceeding relating to the dispute. No recording or transcript shall be made of the mediation proceedings. Each Party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the Parties. e. Governing Law. This Agreement shall be governed by the laws of the State of Colorado as from time to time in effect. Venue is agreed to be exclusively in the state or federal courts serving Pitkin County, Colorado. f. Taxes, VAT, & Service Tax. Tyler and the City shall each bear sole responsibility for all US taxes, assessments, and other real property-related levies or property taxes on its owned property. The City shall be responsible for Service tax, GST, or Value Added Tax or similar taxes applicable on the sale of services or goods. g. Non-Solicitation: Each party agrees that during the term of this Agreement and for a period of one year thereafter, it will not and will assure that its Affiliate will not directly or indirectly, either on its own account or in conjunction with or on behalf of any other person, hire, solicit or endeavor to entice away from the other party any person who, during the term of this Agreement has been an officer, manager, employee, agent or consultant of the other party. 28. Records to be Kept by Tyler. Tyler shall make available to the City if requested, true and complete records, which support billing statements, reports, deliverables, performance and all other documentation directly related to Tyler’s required performance under this Agreement . The City’s authorized representatives shall have access, at any time during reasonable hours and with reasonable advance notice (of at least one (1) week), to al such records at Tyler’s offices or via email and without expense to the City related to copying or document access. The Consultant agrees that it will keep and preserve for at least seven (7) years all documents related to the Agreement which are routinely prepared, collected or compiled by Tyler during the performance of this Agreement. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 20 PSSA PAGE -15 29. Attorney’s Fees. Reserved. 30. Waiver of Presumption. Reserved. 31. Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion. Tyler certifies, by acceptance of this Agreement, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in any transaction with a Federal or State department or agency. It further certifies that prior to submitting its Bid that it did include this clause without modification in all lower tier transactions, solicitations, proposals, contracts and subcontracts. In the event that Tyler or any lower tier participant was unable to certify to the statement, an explanation was attached to this agreement and was determined by the City to be satisfactory to the City. 32. Electronic Signatures and Electronic Records. This Agreement and any amendments hereto may be executed in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one agreement binding on the Parties, notwithstanding the possible event that all Parties may not have signed the same counterpart. Furthermore, each Party consents to the use of electronic signatures by either Party. The Parties agree not to deny the legal effect or enforceability of the Agreement solely because it is in electronic form or because an electronic record was used in its formation. The Parties agree not to object to the admissibility of the Agreement in the form of an electronic record, or a paper copy of an electronic documents, or a paper copy of a document bearing an electronic signature, on the grounds that it is an electronic record or electronic signature or that it is not in its original form or is not an original. 33. Order of Document Precedence. This Professional Services and Software Agreement, together with all Exhibits, constitutes the entire contract (the Contract) and shall be considered one contract document. In the event of conflicting or missing provisions within portions of this contract, the terms of this Professional Services and Software Agreement (PSSA) shall control. With regard to any other conflicting or missing provisions within portions of this contract, the order of precedence for an item is: 1. the general terms as specified in this Professional Services and Software Agreement (PSSA) 2. the specific terms set forth in Exhibit B, the Fee Schedule 3. the specific terms set forth in Exhibit A, the Statement of Work (including the Requirements List) 4. the specific terms set forth in Exhibits C, D, E and F regarding Tyler software and services 34. Execution of Agreement by City. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 35. Authorized Representative. The undersigned representatives of Tyler Technologies, Inc. and the City, represent that he/she is an authorized representative of Tyler or the City, as applicable, for the purposes of executing this Agreement and that he/she has full and complete authority to enter into this Agreement for the terms and conditions specified herein. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 21 PSSA PAGE -16 IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement of which shall be deemed an original on the date first written above. CITY OF ASPEN, COLORADO: TYLER: ________________________________ ______________________________ [Signature] [Signature] By: _____________________________ By: _____________________________ [Name] [Name] Title: ____________________________ Title: ____________________________ Date: ___________________ Date: ___________________ Approved as to form: _______________________________ City Attorney’s Office DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 Sherry Clark 9/6/2022 | 1:31:17 PM CDT Group General Counsel 22 A-40 EXHIBIT A: STATEMENT OF WORK Contents Part 1: Implementation Approach ................................................................................................................................................ 2 1.1 Overall Project Methodology ........................................................................................................................................ 2 1.2 Work Breakdown Structure .......................................................................................................................................... 3 1.3 Project Planning and Management .............................................................................................................................. 3 1.4 Project Communication ................................................................................................................................................ 4 1.5 Roles and Responsibilities ............................................................................................................................................ 4 1.6 Project Deliverables ...................................................................................................................................................... 6 Part 2: System Needs Analysis, Build and Testing ........................................................................................................................ 7 2.1 Solution Orientation ..................................................................................................................................................... 8 2.2 Current and Future State Analysis Sessions ................................................................................................................. 8 2.3 System Configuration ................................................................................................................................................... 8 2.4 Training ......................................................................................................................................................................... 9 2.5 Solution Validation ..................................................................................................................................................... 12 2.6 User Acceptance Testing ............................................................................................................................................ 12 Part 3: Go-Live and Post Go-Live Support................................................................................................................................... 14 3.1 Go Live Support ........................................................................................................................................................... 14 3.2 Post Go-Live Tyler Technical Support ......................................................................................................................... 14 Part 4: Security ............................................................................................................................................................................ 15 4.1 Data Security ............................................................................................................................................................... 15 4.2 Operational Security Controls .................................................................................................................................... 16 4.3 Regulatory Compliance & Certifications .................................................................................................................... 17 4.4 Business Continuity..................................................................................................................................................... 17 PART 5: Project Requirements .................................................................................................................................................... 17 DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 23 A-40 This Exhibit describes how Tyler, through its professional services, will approach, manage and complete this project. Incorporated by reference is the Utility Billing Project Requirements Document (the Requirements Document). Part 1: Implementation Approach 1.1 Overall Project Methodology Tyler will follow its six-stage project methodology. Each of the six stages is comprised of multiple work packages, and each work package includes a narrative description, objectives, tasks, inputs, outputs/deliverables, assumptions, and a responsibility matrix. The project methodology contains Stage Acceptance Control Points throughout each stage to ensure adherence to scope, budget, timeline controls, effective communications, and quality standards. T he project methodology repeats consistently across stages and is scaled to meet the City’s complexity and organizational needs. To achieve Project success, it is imperative that both the City and Tyler commit to including the necessary leadership and governance. During each stage of the Project, it is expected that the City and Tyler Project teams work collaboratively to complete tasks. An underlying principle of Tyler’s implementation process is to employ an iterative model where the City’s business processes are assessed, configured, validated, and refined cyclically in line with the project budget. This approach is used in multiple stages and work packages as illustrated in the graphic below. The delivery approach is systematic, which reduces variability and mitigates risks to ensure Project success. As illustrated, some stages, along with work packages and tasks, are intended to be overlapping by nature to efficiently and effectively complete the project. Tyler is anticipating 6-9 months from project initiation until go-live and the transition to Evergreen on-going services. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 24 A-40 1.2 Work Breakdown Structure In the Work Breakdown Structure (WBS) graphic below, the top -level components are called “Stages” and the second level components are called “Work Packages”. The work packages, shown below each stage, contain the high-level work to be done. The detailed Project Schedule, developed during Project/Phase Planning and finalized during subsequent stages, will list the tasks to be completed within each work package. Each stage ends with a “Control Point”, confirming the work performed during that stage of the Project has been accepted by the client. 1.3 Project Planning and Management Tyler will assign project managers who are subject matter experts to the project. The Tyler staff will consist of seasoned professionals with unique and proprietary skills and years of experience. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 25 A-40 Project Planning is an important piece of any implementation. Tyler takes a custom approach to every project we lead. The City’s project schedule will be developed collaboratively with both project teams to meet the City’s needs, while keeping in mind Tyler’s guidelines for implementation. Periodic project meetings will be scheduled where changes in scope, project length, or cost will be reviewed. 1.4 Project Communication Tyler will collaborate with the City to develop a Communication Plan. The Communication Plan will include at least the following elements: • A centralized project portal • A schedule for regular virtual team meetings • Periodic reports associated with implementation deliverables Tyler will provide the City with a project portal. The purpose of this site is to furnish the project teams with a central location to plan, store and access pertinent documentation and information. The Tyler project portal will ensure that all project stakeholders have an easy-to-use tool that will provide an integrated location to inquire, review, and update all project information. Tyler will have the site available for introduction during the initial project managers’ (PM) meeting. At this meeting, the Tyler PM will provide an overview of the portal and its available tools. The portal site will be jointly maintained by the project teams for the duration of the implementation. Once the City has gone live, the portal will be maintained by Tyler’s client services team for the first year of live processing. In addition to using the project portal for communication, the project teams will meet virtually on a schedule that will facilitate timely communication, progress and accuracy of work. Project management team meetings are anticipated to be monthly, whereas technical team meetings are anticipated to be weekly. However, the specific cadence of meetings will be jointly determined by the project teams based on needs, which may vary during the project. Finally, all implementation deliverables generate reports. The reports will contain detailed assessments of task completion, staff participation and material absorption. The Tyler PM will evaluate and measure the report results, communicate the gaps and collaborate with the City to adjust the plan accordingly. Should issues arise during the project, there are several escalation paths that will be used. These will be laid out in the communication plan and will be followed as appropriate, depending on the circumstance. 1.5 Roles and Responsibilities The following section defines the roles and responsibilities of each project resource for the City and Tyler. Roles and responsibilities may not follow the organizational chart or position descriptions at the City or Tyler, but are roles defined within the project. It is common for individual resources on both the Tyler and client project teams to fill multiple roles. Similarly, it is common for some roles to be filled by multiple people. Tyler Roles & Responsibilities Tyler assigns project managers prior to the start of each phase of the project. The project manager assigns other Tyler resources as the schedule develops. One person may fill multiple project roles.  Tyler Executive Sponsor: Tyler executive management has indirect involvement with the project and is part DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 26 A-40 of the Tyler escalation process, helping to facilitate implementation project tasks and decisions if needed.  Tyler Implementation Manager: Tyler implementation management is consulted on issues and outstanding decisions critical to the project only if needed.  Tyler Project Manager: The Tyler project manager(s) provides oversight of the project, coordination of Tyler resources between departments, management of the project budget and schedule, effective risk, and issue management, and is the primary point of contact for all Project related items. As requested by the client, the Tyler Project Manager provides regular updates to the client Steering Committee and other Tyler governance members. Tyler Project Manager’s role includes responsibilities in contract, implementation, and resource management and planning.  Tyler Implementation Consultant: Document activities for services performed by Tyler. They help guide the client through software validation process following configuration and facilitate training sessions. ICs also assist during go live processing.  Tyler Sales: Supports Sales to Implementation knowledge transfer during stage 1- initiate and plan- and provides historical information, as needed, throughout implementation.  Tyler Technical Services : Maintains Tyler infrastructure requirements and design document(s) and are involved in system infrastructure planning/review(s). They deploy Tyler products. City Roles & Responsibilities City resources will be assigned prior to the start of each phase of the project. One person may be assigned to multiple project roles.  The City Executive Sponsor: The City executive sponsor provides support to the project by providing strategic direction and communicating key issues about the project and its overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated project issues. The executive sponsor engages in the Project, as needed, to provide necessary support, oversight, guidance, and escalation, but does not participate in day- to-day Project activities. The executive sponsor empowers the City steering committee, project manager(s), and functional leads to make critical business decisions for the City.  The City Steering Committee: The City steering committee understands and supports the cultural change necessary for the project and fosters an appreciation for the project’s value throughout the organization. The steering committee oversees the City project manager and project through participation in regular internal meetings. The City steering committee also serves as primary level of issue resolution for the project.  The City Project Manager (PM): The City shall assign PM(s) prior to the start of this project with overall responsibility and authority to make decisions related to project scope, scheduling, and task assignment. The City PM should communicate decisions and commitments to the Tyler PM(s) in a timely and efficient manner. When the City project manager(s) do not have the knowledge or authority to make decisions, the necessary resources are engaged to participate in discussions and make decisions in a timely fashion to avoid project delays. The City PM is responsible for reporting to City steering committee and determining appropriate escalation points. The City PM acts as primary point of contact for all contract and invoicing questions; and collaborates on and approves change requests, if needed, to ensure proper scope and budgetary compliance. The City PM also handles all site resource management items. The City PM collaborates with Tyler PM(s) to plan and/or establish: o project timelines to achieve on-time implementation o process and approval matrix to ensure that scope changes and budget are transparent and handled effectively and efficiently DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 27 A-40 o risk and issue tracking and reporting process between the City and Tyler and takes all necessary steps to proactively mitigate these items o key business drivers and success indicators that will help to govern project activities and key decisions o communication channels at City site to aid in the understanding of goals, objectives, status, and health of the project by all team members o requirements gathering process  The City Functional Leads: The City functional leads make business process change decisions, communicate current processes and procedures and desired changes during current and future state analysis. Most importantly, functional leads act as an ambassador/champion of change for the new process and provide business process change support. Finally, they actively participate in all aspects of the implementation.  The City Power Users: The City power users participate in project activities as required by the project team and pm(s). They act as SMEs, as needed, attend all scheduled training sessions, validate all configuration, and provide knowledge transfer to City staff during and after implementation.  The City End Users: City end users all scheduled training sessions and become proficient in application functions related to job duties. They adopt and utilize changed procedures related to their job functions.  The City Technical Lead: The City technical lead(s) coordinate updates and releases, copying of source databases to training/testing databases, adds new users/printers etc., as well as interface development for third party interfaces. They validate that all users understand log-on process and have necessary permission for all training sessions and develop/assist in creating reports as needed. They may also be responsible for extracting and submitting conversion data and control reports from the City’s legacy system per the conversion schedule set forth in the project schedule.  The City Upgrade Coordination: The City upgrade coordinator utilizes Tyler Community to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage the City’s software upgrade process. They manage software upgrade activities post-implementation.  The City Change Management Lead: The client change management lead validates those users receive timely and thorough communication regarding process changes and provides coaching to supervisors to prepare them to support users through the project changes. 1.6 Project Deliverables A sample list of project deliverables is included below. It is representative of the items that will be created during the project. However, the specific project deliverables will be determined in collaboration with the City project team during kickoff and the life of the project, based on needs. Stage Input Deliverable 1. Initiate & Plan • Contract Documents • Statement of Work • Guide to Starting Your Project • Project Management Plan • Project Operational Plan • Initial Project Schedule • Stakeholder Meeting Presentation DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 28 A-40 2. Assess & Define • Training Plan • Current State Documentation • Solution Orientation Completion • Current & Future State Analysis • Document with Future State Decisions and Configuration • Modification Specifications • Change Requests for out-of- scope modifications • Revised Project Schedule • Modification Requirements • Project Budget/Financial documents • Project Schedule 3. Prepare Solution • Hardware made available • Documentation describing future state decisions • Initial Configuration • Solution Validation Test Plan • Data Conversion Plan • Configuration • Licensed Software Installed • Installation Checklist Document • Configured System • Updated Solution Validation Test Plan • Completed Client-Specific process documentation (if applicable) • Updated Solution Design Document • Prioritized Data Sets for Review • Data Conversion Outputs • Code Mapping Completed • Conversion Iterations 4. Production Readiness • Solution Validation Plan • Go-Live Checklist • Training Plan • List of End Users and Roles/Job Duties • Configured Tyler System • Solution Validation Report • Updated Go-Live Checklist • End User Training (if applicable) 5. Production (Go-Live) • Comprehensive Action Plan • Final Source Data • Open item/issues list • List of post Go-Live activities • Data available in production environment • Client Services Support Document • Updated issues log 6. Close • Contract • Statement of Work • Project Artifacts • Final Action Plan • Reconciliation report • Post Phase Review • Post Project Review Part 2: System Needs Analysis, Build and Testing DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 29 A-40 2.1 Solution Orientation The Solution Orientation step provides the Project stakeholders a high-level understanding of the solution functionality prior to beginning the current and future state analysis. The primary goal is to establish a foundation for upcoming conversations regarding the design and configuration of the solution. Tyler utilizes a variety of tools for the Solution Orientation, focusing on City team knowledge transfer such as: eLearning, documentation, or walkthroughs. The City team will gain a better understanding of the major processes and focus on data flow, the connection between configuration options and outcome, integration, and terminology that may be unique to Tyler’s solution. 2.2 Current and Future State Analysis Sessions The Current & Future State Analysis provides the Project stakeholders and Tyler an understanding of process changes that will be achieved with the new system. The City and Tyler will evaluate current state processes, options within the new software, pros and cons of each based on current or desired state and make decisions about the future state configuration and processing. This may occur before or within the same timeframe as the configuration work package. The options within the new software will be limited to the scope of this implementation and will make use of standard Tyler functionality. Tyler will create current and future state analysis documents during the analysis sessions with the City. These will be loaded to the project portal and will be referenced and updated throughout the project to help configure the system. The current and future state analysis documents will include consideration of input gathered during the analysis sessions and the requirements found in the Requirements Document, with any clarifications, updates or changes agreed to by the City during the analysis sessions. 2.3 System Configuration The purpose of configuration is to prepare the software product for validation. Tyler staff will collaborate with the City to complete software configuration based on the outputs of the future state analysis. The City will collaborate with Tyler staff iteratively to validate the software configuration. The City will adopt the existing Tyler solution wherever possible to avoid project schedule and quality risk from over customization of Tyler products. It is the City’s responsibility to verify that in-scope functional requirements are being met throughout the implementation. However, Tyler will assist the City in understanding how best to structure and complete testing so that functionality is thoroughly vetted. As part of this effort, Tyler will provide Solution Validation Test Plans (as noted above under Project Documentation). The City and Tyler commit to thorough communication and testing so that problematic issues are found and remedied before the system goes live. The following guidelines will be followed when evaluating if a modification to the Tyler product is required: A requirement will be considered met when:  A reasonable business process change is available.  Functionality exists which satisfies the requirement.  Configuration of the application satisfies the requirement.  An in-scope modification satisfies the requirement. Unmet requirements that are out of scope will follow the agreed upon change control process in this Contract and can have impacts on the project schedule, scope, budget, and resource DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 30 A-40 availability. Unmet requirements that are in-scope and require additional work and time to meet will not result in additional budget requests or changes to scope. 2.4 Training Tyler offers several training formats. Training by Tyler staff will provide hands-on learning remotely and/or at the City’s site. The City’s staff will receive consultative knowledge transfer sessions that are a combination of lecture and hands-on education, using the City’s own data. A mutually developed education plan will lay out the process of transferring knowledge between the City and Tyler. The purpose of the education plan is to:  Communicate the process to stakeholders and functional leaders  Answer specific questions (where classrooms will be established, what database environment will be utilized, etc.)  Establish action items and link project personnel as owners  Define measurement criteria to ensure the plan has been successfully followed Tyler prefers a classroom and curriculum approach for training to ensure knowledge transfer, comprehension, and retention. A successful user training session is in a classroom environment with a computer for each user, whiteboard, printer in the room or nearby, and one computer connected to a projector. Class size should be limited to twelve (12) users in attendance to the training is critical to gain hands-on experience with the system. The training goal is to partner and lend our expertise based on experience, to allow City resources to be successful at go-live. Below is a list of the typical classes Tyler is providing during a utility billing project implementation. Tyler will provide at least one instance of each type of course for this project. The exact schedule will DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 31 A-40 be determined in detail during project planning. List of Included Training Sessions Task Name Task Owner Required Attendees Location Module UB-100 Fundamentals Review Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Remote Utility Billing UB-300 CSFS Analysis Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Onsite Utility Billing UB-300 Forms Analysis Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Utility Billing UB-400 Configuration and Validation Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Onsite Utility Billing UB-400 Conversion Mapping Session (REMOTE WEEK) Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead GTM Utility Billing Central Property Training (REMOTE) Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead GTM Central Property UB - 400 Administrative Setup for ReadyForms (REMOTE) Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead GTM Utility Billing Central Property Follow Up Training (REMOTE) Tyler BPC IC Client IT Lead, Client Project Manager, Client UB Functional Lead & Tyler IC GTM Central Property UB -400 Master Programs Training (REMOTE) Tyler IC Client Project Manager, Client UB Functional Leads, Client IT Lead & Tyler IC GTM Utility Billing UB-400 Work Order Management Training (REMOTE) Tyler IC Client Project Manager, Client UB Functional Leads, Client IT Lead & Tyler IC GTM Utility Billing UB-400 Bill Process Training (REMOTE) Tyler IC Client Project Manager, Client UB Functional Leads, Client IT Lead & Tyler IC GTM Utility Billing UB-400 Bill Process Training- Review Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Onsite Utility Billing UB-400 Delinquency Process Training Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Onsite Utility Billing UB-400 Payments & Collections Training Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Onsite Utility Billing UB-400 Conversion Verification Assistance (REMOTE) Tyler IC Client Project Manager, Client UB Functional Leads, Client IT Lead & Tyler IC GTM Utility Billing DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 32 A-40 List of Included Training Sessions Task Name Task Owner Required Attendees Location Module UB-400 Parallel Billing Tyler IC Client Project Manager, Client Functional Lead, Client IT Lead Onsite Utility Billing UB-Review SOP's Tyler IC Client Project Manager, Client Functional Lead, Client IT Lead Onsite Utility Billing TC - End User Training Tyler IC Client Project Manager, Client UB Functional Leads & Client IT Lead Onsite Tyler Cashiering UB-400 Parallel Billing Tyler IC Client Project Manager, Client Functional Lead, Client IT Lead Onsite Utility Billing UB-Review and Finalize SOP's Tyler IC Client Project Manager, Client Functional Lead, Client IT Lead Onsite Utility Billing Cutover Planning N/A User Acceptance Testing (UAT) N/A UB-900 End User Training (City lead unless contracted for Tyler to lead) Client UB Functional Lead, Client Project Manager Client Project Manager, Client Functional Lead, Client UB Users & Client IT Lead Onsite Utility Billing Final Data Conversion N/A Production Processing & Assistance N/A UB-900 Live Processing Support Tyler IC Client IT Lead, Client Project Manager, Client UB Functional Lead & Tyler IC Onsite Utility Billing UB-Post Live Assistance Tyler IC Client Project Manager, Client Functional Lead, Client IT Lead Onsite Utility Billing UB-Post Live Assistance Tyler IC Client Project Manager, Client Functional Lead, Client IT Lead Onsite Utility Billing The City will be responsible for the logistics of the training, completing such tasks as scheduling resources and ensuring facilities are available. These sessions are to be attended by the City’s key staff members (i.e., functional leads and power users) so that they can then disseminate the information they learn to others if or when necessary. Tyler also maintains a complete set of documentation that is available to all users through the Client Resources space. This space provides users with a single, easily accessible location to find all existing documentation on Tyler products and other widely used technology products. Included are procedure documents, file layouts, user guides, installation manuals, setup documents, system administrator documents, data schemas, training exercises and much more. The City will be able to download documentation into Microsoft Word format to edit to modify it to reflect internal policies DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 33 A-40 and procedures. 2.5 Solution Validation Tyler’s quality management and validation plan will address both the project and the product, while ensuring project objectives are met. The project teams validate the solution throughout the life of the project to expose issues that would normally only be revealed in a production environment. A comprehensive validation plan will be set in place and may include system infrastructure audits, conversions, and modification delivery. A controlled environment will be created for high-level product modification validation, import and export interface, functional flow, and reliability. The goal of validation is for end users to gain extensive product experience, develop a high level of confidence in Tyler’s products, and understand their specific functions within the solution. Expected benefits from the completion of validation also include:  The infrastructure of hardware and network design is thoroughly vetted  Modifications are delivered and fully integrated into the solution  A managed issues list is fully quantified Issue tracking, resolution accountability, and completed issue resolution are necessary in a successfully completed project. The validation phase is a shared responsibility and must be recognized as such. 2.6 User Acceptance Testing User Acceptance Testing is an iterative process, where chosen power users will perform end-to-end system testing and report discrepancies in expected system functionality. Tyler will address reported discrepancies. This includes, but is not limited to:  fixing the discrepancy  postponing a discrepancy as a post-Production Cutover improvement  determining the discrepancy is not in scope, or  closing the discrepancy because it deviates from the agreed upon requirements defined during the Assess and Define stage. Once discrepancies are addressed, power users will re-test to validate the fix, and close the discrepancy. All discrepancies must be entered in advance of the close of the UAT stage to allow sufficient time for Tyler to address noted discrepancies and testers to re-test, validate, and close discrepancies. The Tyler project manager will work with the City to determine the appropriate cut off for initial testing efforts. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 34 A-40 Acceptability is defined as the software’s ability to perform day-to -day operations, as expected, based on the agreed upon requirements. Acceptance testers must be able to distinguish between a legitimate need for configuration or functionality change and changes that are subject to one’s own interpretation and/or subjective opinion (i.e., a feature enhancement). The City and Tyler anticipate the following:  The system will not be 100% perfect prior to UAT: Finding configuration discrepancies is a normal part of the process and should be expected, as it helps ensure the product is ready for production and in line with project definitions. UAT during this project is a validation of the system’s acceptability based on decisions made during Assess & Define. For requirements that are not fully met prior to or during UAT, the City may at its discretion agree to move them into EverGuide post-implementation support. Alternatively, depending on the severity of the issue and its impact, the City may determine to require Tyler to remedy the issue pre go-live. Tyler understands that its commitment under this contract is to deliver the functionality promised in this Scope of Work, as described here, as captured in the Requirements Document, and as modified during the Assess and Define phase, prior to go- live.  Understanding that the system will not be 100% perfect after UAT, Tyler will utilize a continuous improvement approach, which focuses on maximizing the performance of the City’s system over time. Post go-live, throughout the life of the City’s relationship with Tyler, the City will have the opportunity to continue improving efficiency and productivity through Tyler’s EverGuide approach. The following outlines specific responsibilities of the City when it comes to testing: • Identify functional leads and power users to perform scenario processing. • Identify and communicate to select functional leads and power users the assigned testing scenarios to be executed with assistance from Tyler implementation staff. • With assistance from Tyler implementation staff, review and prioritize discrepancies that result from completed testing scenarios. • Submit all items first to the Tyler project manager. The project manager will then ensure the reported item is valid prior to submitting to Tyler. This may require input from a functional lead or power user. • Document any issues or discrepancies found related to the product area tested. Tyler recommends limiting the number of resources posting items to the issues list to minimize duplication of issues and prevent changes being requested which are not consistent with DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 35 A-40 agreed upon definitions. Ensure all reports of issues are submitted in a complete and timely manner. • Ensure testing data and testing database maintain their integrity during the testing phase by limiting access and coordinating load and refresh processes. • Monitor the quality and timeliness of the overall testing effort. o Facilitate testing completion by maintaining momentum during process. Check that tests are completed in the order necessary to thoroughly sign-off on process. o Review scenario processes and modify as necessary to align with any changes to policies and procedures. o Work with Tyler project team to oversee all functions of the testing process. The following outlines specific responsibilities of the Tyler Team during testing: • Provide baseline testing steps • Work with the City’s project team to determine which processes, interfaces, and modifications need to be tested. • Collaborate with the City’s project team to develop a baseline scenario that details the procedures for testing data integrity across application processes. • Assist the City team in addressing reported issues/concerns. • Provide training to City staff on tracking issues as required by Tyler. • Support the testing plan developed for the City’s site. • Prepare City staff to support users through the project changes. Part 3: Go-Live and Post Go-Live Support 3.1 Go Live Support Tyler believes that a smooth transition from implementation to the production environment is critical to the success of our project and our clients. To ensure that the City’s team is adequately supported during this critical time, resources from the Tyler project team will provide guidance and assistance as needed. One-week of on-site assistance at go-live is included in the budget in Exhibit B. To assist with identified critical processing issues that occurs during the first 30 days of production, Tyler project team resources will work with the City for the first go-live week to manage issues and actions. After the first week of go-live, assistance will be scheduled as needed with the Tyler project team. During the initiate and plan stage of the project, a decision will be made about the number of project days that will be set aside for go live and post go live activities. Tyler is committed to ensuring that the City is successful in production with Tyler Enterprise ERP Office (Tyler Enterprise) and is always willing to assist at its standard billable rate should the City team request additional service days beyond those agreed to. At the beginning of the production readiness stage of the project, approximately 30 to 60 days prior to go live, the City team will be introduced to Tyler client services (Tyler Technical Support). This milestone assistance process aids in transition from implementation activities to client services and processing in the production environment. During the transition call to client services, the City will learn about the tools and processes available to it. This service is intended to facilitate a smooth handover from project implementation, helping the City’s resources become self-sufficient. 3.2 Post Go-Live Tyler Technical Support Tyler’s mission is to deliver superior service by providing timely response, issue resolution and DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 36 A-40 operational support, resulting in a high-level of client satisfaction. Unlike some companies who outsource their application support to a third party, Tyler offers a complete solution of customer support services provided by our in-house experts. See Exhibit C for the SaaS Agreement and Exhibit D for the Tyler Service Level Agreement. The full suite of support post go-live includes the resources below for the City and other Tyler clients: Part 4: Security See the PSSA and also Exhibit C for more detail on the standards and protocols Tyler will adhere to in providing security to the system. An overview is provided here. In the case of a conflict in provisions, see the PSSA, Section 33, for the order of document precedence. 4.1 Data Security Dedicated Application Environments The Tyler SaaS cloud infrastructure is multi-tenant with multiple clients sharing infrastructure and software components. Tyler SaaS clients are provided dedicated, client-specific application environments, unlike most multi-tenant solutions in which all clients use shared application environments. Providing clients dedicated application environments adds an additional layer of security through complete segregation of data access. Clients also have the flexibility to schedule application updates on their own schedule and convenience. Transport Layer Security (TLS) encryption protects communication with Tyler applications, including end-user access through TLS-protected HTTPS. This widely adopted protocol secures sensitive data by preventing reading or modifying information transferred. Tyler utilizes disk encryption-at-rest for regulatory compliance and security audit readiness. Disk encryption-at-rest allows for data protection across all scenarios in which data that is stored in the disks is compromised due to disks removal from the site. With data encryption using AES256 and the ability to securely erase a disk, the risk of data exposure is eliminated. Application Authentication & Authorization Tyler application security access is role-based and requires end-user authentication through industry standard identity providers (IdP’s). Tyler solutions include zero-trust identity management built on DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 37 A-40 technology from Okta, the industry leader in identity management. Support for industry standard identity providers (IdP’s) such as Microsoft Azure AD and Google Cloud Identity provides clients with seamless, single sign-on to Tyler back-office solutions. This also enables clients to use their own login and password policies, including the use of multifactor authentication for enhanced identity verification. Administrators can use the Okta user store to create and manage accounts that do not exist in their IdP or those who do not have an existing enterprise IdP at all. Tyler solutions intended for users external to an organization, such as vendors and residents, provide self-service account creation and management through email or usage of social providers, such as Google, Apple, Microsoft, and Facebook. Tyler solutions employ a comprehensive Role Based Access Control (RBAC) security model to facilitate end-user access to applications, processes, and data. Roles can be tailored to offer a flexible level of access control within each Tyler solution. Access can be granted by solution, process, record – including read, update, and delete access – and field. Role permissions can span multiple modules within a solution providing streamlined administration for users who “wear multiple hats”. If overlapping or conflicting permissions are applied to a user, the highest priority / least restrictive access is granted to that user. User and role administration is performed using easy-to-use, integrated applications, requiring very little technical expertise. In fact, while security can be centrally administered by a single department such as an organizations IT department, clients can also decentralize security by application module. Decentralizing security administration to subject matter experts such as a department head puts those most familiar an organizations’ processes in control of ensuring appropriate access control is adhered to. 4.2 Operational Security Controls Secure Software Development Life Cycle Tyler employs an enterprise Secure Software Development Life Cycle (SDLC) dedicated to continuously reviewing and enhancing the security posture of Tyler’s products. Tyler uses enterprise-level dynamic and static security scanning tools as part of our software development lifecycle. In addition to scanning tools, Tyler’s application security team executes manual assessments on Tyler products using a testing methodology based upon the OWASP Testing Framework. Vulnerability Disclosure Program Tyler has an enterprise-wide vulnerability disclosure program which includes Tyler products in its scope. Tyler makes available a communication channel for clients, partners, and the security community to report vulnerabilities in our products. Tyler’s Enterprise Application Security Team is responsible for triaging and managing product related vulnerability reports. This process involves confirming the vulnerability exists, assigning risk and impact, working with development on a fix, testing the fix, releasing the fix, and communicating the fix to clients. Physical Security Controls Using proximity key card entry systems and cameras, access to Tyler facilities is restricted to authorized personnel only. Data center entry attempts are audited regularly. Network Security Tyler hosting services include a dedicated Network Operations Center (NOC) for 24x7 monitoring of system utilization and network activity. Tyler employs a variety of industry-standard solutions for monitoring and intrusion detection and prevention. Solar Winds Network Performance Monitor and Database Performance Analyzer, and VMware vCenter Operations Management Suite monitor DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 38 A-40 system, database, and infrastructure utilization. Firewalls include Intrusion Protection System (IPS) modules to detect and prevent intrusions. A variety of routine scans are performed regularly including vulnerability scans, external penetration tests, and static and dynamic security scanning. Tyler also leverages a third-party service for DDoS detection and mitigation. 4.3 Regulatory Compliance & Certifications Tyler SaaS Hosting Operations employ best practice security controls and are subject to annual assurance audits. Audits include SOX-404 Financial and IT General Control conducted by an independent CPA firm, SOC 1 Type 2 and SOC 2 Type 2 conducted by an independent AICPA firm, and PCI Security Council PA-DSS and PCI-DSS validation for Tyler’s payment and payment gateway applications. More information on Tyler Industry & Regulatory Compliance, including how to obtain a copy of Tyler’s SOC Report can be found at: h ttps://www.tylertech.com/about -us/compliance 4.4 Business Continuity Tyler maintains two primary datacenters for hosted customers. One is owned by Tyler, located in Yarmouth, ME, and operates in alignment with Tier III guidelines. The other is a colocation facility, DataBank, a certified Tier III datacenter located in Dallas, TX. Primary data centers are replicated to Amazon Web Services data centers for disaster recovery, which operate in alignment with Tier III+ guidelines. Tyler SaaS data centers are built on enterprise compute systems. Three tiers of storage are utilized providing varying levels of performance resiliency. Firewalls, routers, and storage are all setup in a highly available configuration. Tyler data centers are serviced by multiple power providers and include backup power in the event of power loss from all power providers. Multiple internet service providers are employed across multiple hub sources bandwidth is drawn from different hub locations and to mitigate the risk of a data center Internet outage. Data center servers, HVAC units, and smart devices on cabinet power strips all have the capabilities of notifying appropriate personnel of events such as power outages, server over-heating, humidity, and room temperature abnormalities. As part of Tyler’s defined business continuity plan, full server snapshots are performed daily after normal business hours and data is replicated between data centers using an enterprise backup solution. Tyler employs a FIPS-compliant enterprise backup solution certified for CJIS and GovCloud use. Data transfer and storage is encrypted as defined in FIPS140-2 and FIPS140-3 standards. Traffic related to client data for the purpose of Business Continuity is never transmitted over the public internet. All replicated data is pushed through private direct connections between Tyler facilities and from Tyler Facilities to AWS. Clients can create on-demand application database backups for select Tyler solutions at any time through the Tyler SaaS Cloud Admin Portal. Clients can request data restored from backups as defined through application-specific retention policies. Tyler Technologies warrants its service to its standard service level agreement (SLA). The SLA defines service availability (% of uptime), and recovery point objective (RPO) and recovery time objective (RTO) for data centers used for Tyler SaaS hosting. Tyler’s business continuity plan is tested annually, and backup restore tests are performed weekly. Further information regarding Tyler’s business continuity plan can be found in PART 5: Project Requirements DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 39 A-40 The Requirements Document, incorporated by reference, represents Tyler’s commitments to meeting the City’s requirements. These requirements will be clarified, refined, and verified during the current and future state analysis referenced earlier in this Exhibit A. In meeting these requirements, the following notes and assumptions apply: Tyler Reporting Services Wherever Tyler Technologies, Inc. has responded affirmatively to certain functional checklist questions/requirements/specifications as requiring the use of Tyler Reporting Services, (SSRS), the City is solely responsible for development of the necessary/required report(s), unless specifically indicated otherwise. Interfaces / Customizations Interface requirements agreed to by Tyler within this response will depend on the City maintaining an active support agreement with the identified third-party system as well as a current version actively supported by the manufacturer/developer of the product installed. Custom Modifications Custom modifications, if quoted with a specific dollar value, are priced based upon the total proposed software package and the requirements set forth in the Requirements Document. To the extent system components and/or requirements change, pricing for custom modifications may also change. If a custom modification is identified without a price, that identification is provided as an alert that the functionality is not available “out of the box,” and additional information is required from the customer before Tyler can price the modification. Any custom modifications that the customer requests post-contracting will be subject to an amendment or change order, which will address at least the pricing and schedule impacts of adding the subject modification to the original project scope and schedule. Utility Billing Requirements Document In signing this contract, Tyler is committing to meet the requirements listed in the Requirements Document, unless identified as out of scope or not possible within the document. The requirements will be met within the budget of this approved contract, and as may be jointly updated or modified during analysis sessions. The Requirements Document is available upon request. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 40 B-1 EXHIBIT B. FEE SCHEDULE This Exhibit outlines the fees and payment schedule associated with this Contract. This is a not-to-exceed contract, with the payment amounts and schedule below. Any and all work and charges above and beyond the contract amount must be agreed to by both parties in writing prior any additional work taking place and shall be captured in written change orders or contract amendments formally approved. Because the total contract amount exceeds $50,000, any additional expenditures are required by the City of Aspen procurement policy to be approved by City Council unless the additional funding amounts do not exceed any previously approved project contingency budget. Software Modules Included in this Contract The Tyler Technology software modules and functionalities included in this Contract are indicated in Tables B(1) and B(2) below and will be provided for 10 concurrent users. In addition, this procurement includes unlimited storage. First Year Fees The First Year fees include four categories of costs: 1. Total software and related fees 2. Total SaaS and related fees 3. Total professional services fees 4. Estimated travel costs These fees are outlined in more detail below. 1. Total Software License and Related Fees (Table B1): $14,500  Due when the software is made available to the City for download, expected to be within five (5) days of the effective date of this contract. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 41 B-2 TABLE B1: TYLER SOFTWARE LICENSE AND RELATED FEES DETAIL • Discount detail: The net discounted license cost for Utility Billing CIS and Utility Billing Meter Interface, as illustrated above, is $0.00. 2. Total Annual SaaS and Related Fees (Table B2), Year 1: $53,000 • Due at the commencement of the SaaS Term as defined in the Agreement, with renewals invoiced annually thereafter. • For twelve (12) months past the execution date of this contract, additional concurrent users can be added for $1,000 each; subsequently, they can be purchased at the then-current Tyler rate for concurrent users. 3. Total Professional Services Fees (Table B3): $91,688 • Project management fees are priced hourly and billed monthly in arrears • Project Planning Services fee due 100% upon delivery of Implementation Planning Document • Conversion fees due 50% upon initial delivery of converted data, and 50% upon client acceptance to load converted data into Production, by conversion option • All other services to be billed monthly in arrears upon completion of the work DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 42 B-3 TABLE B2: TYLER SAAS AND RELATED SERVICES DETAIL TABLE B3: TYLER PROFESSIONAL SERVICES FEES DETAIL DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 43 B-4 4. Estimated Travel Costs: $2,960 Tyler will provide onsite services for the first week of go-live. The estimated cost for travel, included in the project budget, is $2,960 inclusive. Actual expense reimbursements will be billed as incurred and in accordance with Exhibit E, Tyler Travel Policy. Copies of receipts will be provided upon request. Tyler reserves the right to charge the City an administrative fee depending on the extent of the City’s requests. Receipts for miscellaneous items less than twenty-five dollars and mileage logs are not available. TOTAL FIRST YEAR COSTS, INCLUDING TRAVEL, NOT TO EXCEED $162,148 Annual SaaS Fees Year 2-5 In addition to the annual pricing offered for year 1 ($53,000) Tyler Technology has guaranteed rates for annual SaaS Fees for years 2-5 of implementation. (Table B4). Should the City continue to use the product, these prices will not change. The City reserves the right to terminate the Contract with cause, regardless of guaranteed annual pricing. TABLE B4: ANNUAL SAAS Services FEES FOR YEARS 2 THROUGH 5 Year 2 Year 3 Year 4 Year 5 $53,000 $53,000 $55,650 $58,433 The support included as a part of the SaaS Fees is described in Exhibit C (the SaaS agreement) and Exhibit D (the Service Level Agreement). Change Orders Tyler’s quote contains estimates of the amount of services needed, based on its preliminary understanding of the scope, level of engagement, and timeline as defined in Exhibit A (the Scope of Work). The actual amount of products and services required may vary, based on these factors. Should portions of the scope of products or services be altered, Tyler reserves the right to use the Change Order process outlined here to adjust prices for the remaining scope accordingly. Any work performed in excess of the agreed to limits in this Contract will require a written change order, mutually agreed to by the City and Tyler. If additional funds have not previously been approved by City Council, the change order must be approved by City Council as a contract amendment prior to beginning work. For twelve (12) months past the date of the Contract execution, the City may purchase additional services at the rates listed below. If twelve months have expired since the date of Contract execution, the City may purchase additional products and services at Tyler’s then-current list price. • Project management services: $185 per hour • Additional GL Interface or Bill for UB Assessments services: $163 per hour • Additional history cleanup services: $163 per hour • All other remote implementation services: $185 per hour. (available in 4 or 8 hour blocks only) • Any additional onsite implementation services: $210 per hour DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 44 B-5 Additional Price Details DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 45 C-1 EXHIBIT C: TYLER TECHNOLOGIES SAAS AGREEMENT Table of Contents SECTION A – DEFINITIONS ..................................................................................................................................... 2 SECTION B – SAAS SERVICES ................................................................................................................................. 3 SECTION C – MAINTENANCE AND SUPPORT ......................................................................................................... 5 SECTION D – THIRD PARTY PRODUCTS .................................................................................................................. 6 SECTION D – INVOICING AND PAYMENT ............................................................................................................. 12 SECTION E – SAAS TERM AND TERMINATION ..................................................................................................... 12 SECTION F – INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE ..................................................... 13 SECTION H – GENERAL TERMS AND CONDITIONS ............................................................................................... 15 DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 46 C-2 This Software as a Service (SaaS) Agreement (Exhibit C) is made between Tyler Technologies, Inc. (Tyler) and the City of Aspen (the City) and is one component of the Tyler Technologies Enterprise ERP Office contract with the City. The City has selected Tyler to provide its proprietary Tyler Enterprise ERP Office product, including the components outlined in Exhibit B, for utility billing and other services. SECTION A – DEFINITIONS • “SaaS Agreement” means this Software as a Service Agreement (Exhibit C), which is one element of Tyler’s contract with the City (“Contract”). • “Business Travel Policy” means the Tyler business travel policy. A copy of Tyler’s current Business Travel Policy is attached as Exhibit E of this contract. • “Client” means the City of Aspen, Colorado. • “Contract” means all documents identified in the Professional Services and Software Agreement (PSSA), of which this Exhibit C is one component. • “Data” means the City’s data necessary to utilize the Tyler Software. • “Data Storage Capacity” means the contracted amount of storage capacity for your Data identified in the Investment Summary. • • “Defect” means a failure of the Tyler Software to substantially conform to the functional descriptions and requirements set forth in this Contract, or their functional equivalent. Future functionality may be updated, modified, or otherwise enhanced through Tyler’s maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in Tyler’s then-current Documentation. • “Defined Users” means the number of users that are authorized to use the SaaS Services. The number of Defined Users for the Contract is identified in Exhibit B. • “Developer” means a third party who owns the intellectual property rights to Third Party Software. • “Documentation” means any online or written documentation related to the use or functionality of the Tyler Software that we provide or otherwise make available to the City, including instructions, user guides, manuals and other training or self-help documentation. • “Effective Date” means the date by which both the City’s and Tyler’s authorized representatives have signed the Contract, which is composed of the documents identified in the Professional Services and Software Agreement (PSSA). • “Force Majeure” means an event beyond the reasonable control of the City or Tyler, including, without limitation, governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause that could not with reasonable diligence be foreseen or prevented by the City or Tyler. • “Investment Summary” is synonymous with the agreed upon cost proposal for the products and services attached as Exhibit B. • “Invoicing and Payment Policy” means Tyler’s invoicing and payment policy. A copy of the current Invoicing and Payment Policy is attached as Exhibit F to this Contract. • “Order Form” means an ordering document that includes a quote or fee summary specifying the items to be provided by Tyler to the City, including any addenda and supplements thereto. It is synonymous with Change Order or Amendment to this contract. • “SaaS Fees” means the fees for the SaaS Services identified in Exhibit B. • “SaaS Services” means software as a service consisting of system administration, system management, and system monitoring activities that Tyler performs for the Tyler software and includes the right to access and use the Tyler Software, receive maintenance and support on the Tyler DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 47 C-3 Software (including Downtime resolution under the terms of the Tyler Service Level Agreement (SLA) in Exhibit D), and Data storage and archiving. SaaS Services do not include support of an operating system or hardware, support outside of our normal business hours, or training, consulting or other professional services. • “SLA” means the service level agreement. A copy of Tyler’s current SLA is attached hereto as Exhibit D of the Contract. • “Support Call Process” means the support call process applicable to all our customers who have licensed the Tyler Software. A copy of our current Support Call Process is included in Exhibit D. • “Third Party Hardware” means the third party hardware, if any, identified in Exhibit B, the fee schedule. • “Third Party Products” means the Third Party Software and Third Party Hardware. • “Third Party SaaS Services” means software as a service provided by a third party, if any, identified in Exhibit B of this contract. • “Third Party Services” means the third party services, if any, identified in Exhibit B. • “Third Party Software” means the third party software, if any, identified in Exhibit B. • “Third Party Terms” means, if any, the end user license agreement(s) or similar terms for the Third Party Products or other parties’ products or services , as applicable, and attached or indicated • “Tyler” means Tyler Technologies, Inc., a Delaware corporation. • “Tyler Software” means Tyler’s proprietary software, including any integrations, custom modifications, and/or other related interfaces identified in this Contract and licensed by Tyler to the City through this Contract. • “we”, “us”, “our” and similar terms mean Tyler. • “you” and similar terms mean the City of Aspen. SECTION B – SAAS SERVICES 1. Rights Granted. We grant to the City the non-exclusive, non-assignable limited right to use the SaaS Services solely for the City’s internal business purposes for the number of Defined Users only. The Tyler Software will be made available to the City according to the terms of this Contract. The City acknowledges that Tyler has no delivery obligations, and we will not ship copies of the Tyler Software as part of the SaaS Services. The City may use the SaaS Services to access updates and enhancements to the Tyler Software, as further described in Section C of this Exhibit. The foregoing notwithstanding, to the extent we have sold the City perpetual licenses for Tyler Software, if and as listed in Exhibit B, for which the City is receiving SaaS Services, the City rights to use such Tyler Software are perpetual, subject to the terms and conditions of this Contract. We will make any such software available to the City for download. 2. SaaS Fees. The City agrees to pay Tyler the SaaS Fees. Those amounts are payable in accordance with the Fee Schedule (Exhibit B), as supplemented by the Tyler Invoicing and Payment Policy (Exhibit F), and at the rates specified in Exhibit B through year 5 of this agreement. The SaaS Fees are based on the number of Defined Users The City may add additional users according to the terms set forth in Exhibit B. In the event the City regularly and/or meaningfully exceeds the Defined Users or Data Storage Capacity, we reserve the right to charge the City additional fees commensurate with the overage(s). 3. Ownership. 3.1 Tyler retains all ownership and intellectual property rights to the SaaS Services, the Tyler Software, and anything developed by us under this SaaS Agreement. The City does not acquire under this Agreement any license to use the Tyler Software in excess of the scope and/or duration of the SaaS Services. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 48 C-4 3.2 The Documentation is licensed to the City and may be used and copied by the City employees for internal, non-commercial reference purposes only. 3.3 The City retains all ownership and intellectual property rights to the Data. The City expressly recognizes that except to the extent necessary to carry out our obligations contained in this Agreement, we do not create or endorse any Data used in connection with the SaaS Services. 4. Restrictions. The City may not: (a) make the Tyler Software or Documentation resulting from the SaaS Services available in any manner to any third party for use in the third party’s business operations; (b) modify, make derivative works of, disassemble, reverse compile, or reverse engineer any part of the SaaS Services; (c) access or use the SaaS Services in order to build or support, and/or assist a third party in building or supporting, products or services competitive to us; or (d) license, sell, rent, lease, transfer, assign, distribute, display, host, outsource, disclose, permit timesharing or service bureau use, or otherwise commercially exploit or make the SaaS Services, Tyler Software, or Documentation available to any third party other than as expressly permitted by this Agreement. 5. Software Warranty. We warrant that the Tyler Software will perform without Defects during the term of this Agreement. If the Tyler Software does not perform as warranted, we will use all reasonable efforts, consistent with industry standards, to cure the Defect in accordance with the maintenance and support process set forth in Exhibit D (the Tyler Service Level Agreement) and our then current Support Call Process. 6. SaaS Services. 6.1 Our SaaS Services are audited at least yearly in accordance with the AICPA’s Statement on Standards for Attestation Engagements (“SSAE”) No. 18. We have attained, and will maintain, SOC 1 and SOC 2 compliance, or its equivalent, for so long as the City is timely paying for SaaS Services. The scope of audit coverage varies for some Tyler Software solutions. Upon execution of a mutually agreeable Non-Disclosure Agreement (“NDA”), we will provide the City with a summary of our compliance report(s) or its equivalent. Every year thereafter, for so long as the NDA is in effect and in which the City make a written request, we will provide that same information. If our SaaS Services are provided using a 3rd party data center, we will provide available compliance reports for that data center. 6.2 The City will be hosted on shared hardware in a Tyler data center or in a third-party data center. In either event, databases containing the City Data will be dedicated to the City and inaccessible to our other customers. 6.3 Our Tyler data centers have fully-redundant telecommunications access, electrical power, and the required hardware to provide access to the Tyler Software in the event of a disaster or component failure. In the event of a data center failure, we reserve the right to employ our disaster recovery plan for resumption of the SaaS Services. In that event, we commit to a Recovery Point Objective (“RPO”) of 24 hours and a Recovery Time Objective (“RTO”) of 24 hours. RPO represents the maximum duration of time between the most recent recoverable copy of the City hosted Data and subsequent data center failure. RTO represents the maximum duration of time following data center failure within which the City access to the Tyler Software must be restored. 6.4 Tyler conducts annual penetration testing of either the production network and/or web application to DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 49 C-5 be performed. Tyler will maintain industry standard intrusion detection and prevention systems to monitor malicious activity in the network and to log and block any such activity. We will provide the City with a written or electronic record of the actions taken by us in the event that any unauthorized access to the City database(s) is detected as a result of Tyler’s security protocols. We will undertake an additional security audit, on terms and timing to be mutually agreed to by the parties, at the City written request. The City may not attempt to bypass or subvert security restrictions in the SaaS Services or environments related to the Tyler Software. Unauthorized attempts to access files, passwords or other confidential information, and unauthorized vulnerability and penetration test scanning of our network and systems (hosted or otherwise) is prohibited without the prior written approval of our IT Security Officer. 6.5 Tyler tests our disaster recovery plan on an annual basis. Our standard test is not client-specific. Should the City request a client-specific disaster recovery test, we will work with the City to schedule and execute such a test on a mutually agreeable schedule. At the City’s written request, we will provide test results to the City within a commercially reasonable timeframe after receipt of the request. 6.6 Tyler will be responsible for importing, back-up and verifying that the City can log-in. The City will be responsible for running reports and testing critical processes to verify the returned Data. 6.7 Tyler provides secure Data transmission paths between each of the City workstations and our servers. 6.8 Tyler data centers are accessible only by authorized personnel with a unique key entry. All other visitors to Tyler data centers must be signed in and accompanied by authorized personnel. Entry attempts to the data center are regularly audited by internal staff and external auditors to ensure no unauthorized access. 6.9 Where applicable with respect to our applications that take or process card payment data, Tyler is responsible for the security of cardholder data that we possess, including functions relating to storing, processing, and transmitting of the cardholder data and affirm that, as of the Effective Date, we comply with applicable requirements to be considered PCI DSS compliant and have performed the necessary steps to validate compliance with the PCI DSS. We agree to supply the current status of our PCI DSS compliance program in the form of an official Attestation of Compliance, which can be found at https://www.tylertech.com/about- us/compliance, and in the event of any change in our status, will comply with applicable notice requirements. 6.10 For at least the past twelve (12) years, all of Tyler’s employees have undergone criminal background checks prior to hire. All employees sign our confidentiality agreement and security policies. SECTION C – MAINTENANCE AND SUPPORT For so long as the City timely pays the Tyler SaaS Fees according to the Fee Schedule (Exhibit B) and the Invoicing and Payment Policy (Exhibit F), then in addition to the terms set forth in the SLA and the Support Call Process in Exhibit D, Tyler will: 1. perform our maintenance and support obligations in a professional, good, and workmanlike manner, DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 50 C-6 consistent with industry standards, to resolve Defects in the Tyler Software (subject to any applicable release life cycle policy); 2. provide support during our established support hours; 3. maintain personnel that are sufficiently trained to be familiar with the Tyler Software and Third Party Software, if any, in order to provide maintenance and support services; 4. make available to the City all releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers who have a maintenance and support agreement in effect; and 5. provide non-Defect resolution support of prior releases of the Tyler Software in accordance with any applicable release life cycle policy. Tyler will use all reasonable efforts to perform support services remotely. Currently, Tyler uses a third-party secure unattended connectivity tool called Bomgar, as well as GotoAssist by Citrix. Therefore, the City agrees to maintain a high-speed internet connection capable of connecting Tyler to the City PCs and server(s). The City agrees to provide Tyler with a login account and local administrative privileges as the company may reasonably require to perform remote services. Tyler will, at its option, use the secure connection to assist with proper diagnosis and resolution, subject to any reasonably applicable security protocols. If we cannot resolve a support issue remotely, we may be required to provide onsite services. In such event, we will be responsible for our travel expenses, unless it is determined that the reason onsite support was required was a reason outside our control. Either way, the City agrees to provide Tyler with full and free access to the Tyler Software, working space, adequate facilities within a reasonable distance from the equipment, and use of machines, attachments, features, or other equipment reasonably necessary for us to provide the maintenance and support services, all at no charge to the City. We strongly recommend that the City also maintain the City VPN for backup connectivity purposes. For the avoidance of doubt, SaaS Fees do not include the following services: (a) onsite support (unless Tyler cannot remotely correct a Defect in the Tyler Software, as set forth above) (b) application design (c) other consulting services or (d) support outside our normal business hours as listed in our then-current Support Call Process. Requested services such as those outlined above, which go beyond those listed will be billed to the City on a time and materials basis at Tyler’s then current rates, provided they are above and beyond the Scope of Services in Exhibit A. The City must request those services with at least one (1) week’s advance notice. SECTION D – THIRD PARTY PRODUCTS 1. ThinPrint Terms. The City’s use of Tyler Forms software and forms is subject to the End User License Agreement terms for ThinPrint Engine, ThinPrint License Server, and Connected Gateway found here: https://www.thinprint.com/en/legal-notes/eula/. By signing a Tyler Agreement or Order Form, or DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 51 C-7 accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms. 2. Twilio Acceptable Use Policy. The City’s use of the Tyler solutions in this contract includes functionality provided by a Third Party Developer, Twilio. The City’s rights, and the rights of any of your end users, to use said functionality are subject to the terms of the Twilio Acceptable Use Policy, available at http://www.twilio.com/legal/aup. By signing a Tyler Agreement or Order Form, or accessing, installing, or using any such Tyler solution, you certify that you have reviewed, understand and agree to said terms. Tyler hereby disclaims any and all liability related to your or your end user’s failure to abide by the terms of the Twilio Acceptable Use Policy. Any liability for failure to abide by said terms shall rest solely with the person or entity whose conduct violated said terms. • Electronic Warrants • Modria • Odyssey Notifications Add On (text notifications) • ReadySub • Tyler Notify • Tyler Jury Manager • Tyler Supervision • Virtual Court DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 52 C-8 3. Doc Origin EULA Terms DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 53 C-9 DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 54 C-10 DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 55 C-11 DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 56 C-12 SECTION D – INVOICING AND PAYMENT Tyler will invoice the City the SaaS Fees in accordance with the amounts and schedule shown Exhibit B (the Fee Schedule) for the first five years after this Contract is executed. After the fifth year, we will invoice the City at the then-agreed upon SaaS fees and in accordance with the then current Tyler Invoicing and Payment Policy. Invoice disputes will be handled according to the terms in the Professional Services and Software Agreement (PSSA) in this contract. SECTION E – SAAS TERM AND TERMINATION DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 57 C-13 1. SaaS Term. The initial term of this SaaS Agreement is equal to one year from the first day of the month following the Effective Date. Upon expiration of the initial term, this SaaS Agreement will renew automatically for additional one (1) year renewal term at the rates specified in Exhibit B (the Fee Schedule) for the first four (4) annual renewals, and at Tyler’s then-current SaaS Fees thereafter, unless terminated in writing by either party at least sixty (60) days prior to the end of the then-current renewal term. After year 5, Tyler will provide the City with annual notice of upcoming renewal fees at least thirty (30) days prior to the end of the then current term. The City’s right to access or use the Tyler Software and the SaaS Services will terminate at the end of the then current SaaS Agreement unless renewed. 2. Termination. The Contract may be terminated as set forth below. In the event of termination, the City will pay Tyler for all undisputed fees and expenses related to the software, services, and products the City have received, or Tyler has delivered, prior to the effective date of termination. Disputed fees and expenses in all terminations other than the City termination for cause must have been submitted as invoice disputes in accordance with the City of Aspen Professional Services and Software Agreement (PSSA). a. Failure to Pay SaaS Fees. The City acknowledges that continued access to the SaaS Services is contingent upon the City’s timely payment of SaaS Fees. If the City fails to timely pay the SaaS Fees, Tyler may discontinue the SaaS Services and deny the City access to the Tyler Software. Tyler may terminate services if the City doesn’t cure such failure to pay within forty-five (45) days of receiving written notice of our intent to terminate. b. For Cause. If the City believe Tyler has materially breached this SaaS Agreement, the City will invoke the Dispute Resolution clause set forth in the Professional Services and Software Agreement (PSSA). The City may terminate this Agreement for cause in the event Tyler does not cure, or create a mutually agreeable action plan to address, a material breach of this Agreement within the timelines specified in the Professional Services and Software Agreement. c. Force Majeure. Either party has the right to terminate this Agreement if a Force Majeure event suspends performance of the SaaS Services for a period of forty-five (45) days or more. d. Lack of Appropriations. If the City cannot appropriate or otherwise make available funds sufficient to utilize the SaaS Services, the City may unilaterally terminate this Agreement upon thirty (30) days written notice to us. The City will not be entitled to a refund or offset of previously paid, but unused, SaaS Fees. SECTION F – INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE 1. Intellectual Property Infringement Indemnification. 1.1 We will defend the City against any third party claim(s) that the Tyler Software or Documentation infringes that third party’s patent, copyright, or trademark, or misappropriates its trade secrets, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). The City must notify us promptly in writing of the claim and give us sole control over its defense or settlement. The City agrees to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 58 C-14 1.2 Our obligations under this Section G (1) will not apply to the extent the claim or adverse final judgment is based on the City use of the Tyler Software in contradiction of this Agreement, including with non-licensed third parties, or the City willful infringement. 1.3 If we receive information concerning an infringement or misappropriation claim related to the Tyler Software, we may, at our expense and without obligation to do so, either: (a) procure for the City the right to continue its use; (b) modify it to make it non-infringing; or (c) replace it with a functional equivalent, in which case the City will stop running the allegedly infringing Tyler Software immediately. Alternatively, we may decide to litigate the claim to judgment, in which case the City may continue to use the Tyler Software consistent with the terms of this Agreement. 1.4 If an infringement or misappropriation claim is fully litigated and the City use of the Tyler Software is enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or settlement to which we consent), we will, at our option, either: (a) procure the right to continue its use; (b) modify it to make it non-infringing; or (c) replace it with a functional equivalent. This section provides the City exclusive remedy for third party copyright, patent, or trademark infringement and trade secret misappropriation claims. 2. General Indemnification. 2.1 We will indemnify and hold harmless the City and the City agents, officials, and employees from and against any and all third-party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for (a) personal injury or property damage to the extent caused by our negligence or willful misconduct; or (b) our violation of PCI-DSS requirements or a law applicable to our performance under this Agreement. The City must notify us promptly in writing of the claim and give us sole control over its defense or settlement. The City agrees to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. 2.2 To the extent permitted by applicable law, the City will indemnify and hold harmless us and our agents, officials, and employees from and against any and all third-party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for personal injury or property damage to the extent caused by the City negligence or willful misconduct; or (b) the City violation of a law applicable to the City performance under this Agreement. We will notify the City promptly in writing of the claim and will give the City sole control over its defense or settlement. We agree to provide the City with reasonable assistance, cooperation, and information in defending the claim at the City expense. 3. Disclaimer. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. CLIENT UNDERSTANDS AND AGREES THAT TYLER DISCLAIMS ANY LIABILITY FOR ERRORS THAT RELATE TO USER ERROR. 4. LIMITATION OF LIABILITY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THE CONTRACT, OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS CONTRACT, WHETHER BASED ON A THEORY OF DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 59 C-15 CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO THE CITY ACTUAL DIRECT DAMAGES, NOT TO EXCEED (A) DURING THE INITIAL TERM, AS SET FORTH IN SECTION E(1), TOTAL FEES PAID AS OF THE TIME OF THE CLAIM; OR (B) DURING ANY RENEWAL TERM, THE THEN- CURRENT ANNUAL SAAS FEES PAYABLE IN THAT RENEWAL TERM. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PRICES SET FORTH IN THIS AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION OF LIABILITY AND TO THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE LAW, THE EXCLUSION OF CERTAIN DAMAGES, AND EACH SHALL APPLY REGARDLESS OF THE FAILURE OF AN ESSENTIAL PURPOSE OF ANY REMEDY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT TO SECTIONS F(1) AND F (2). 5. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL TYLER BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF TYLER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SECTION H – GENERAL TERMS AND CONDITIONS 1. Client Lists. The City agrees that we may identify the City by name in client lists, marketing presentations, and promotional materials. 2. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights to private individuals and entities, including the parties. Confidential information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., social security numbers) and trade secrets, each as defined by applicable state law. Each party agrees that it will not disclose any confidential information of the other party and further agrees to take all reasonable and appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement. This obligation of confidentiality will not apply to information that: (a) is in the public domain, either at the time of disclosure or afterwards, except by breach of this Agreement by a party or its employees or agents; (b) a party can establish by reasonable proof was in that party's possession at the time of initial disclosure; (c) a party receives from a third party who has a right to disclose it to the receiving party; or (d) is the subject of a legitimate disclosure request under the open records laws or similar applicable public disclosure laws governing this Agreement; provided, however, that in the event the City receive an open records or other similar applicable request, the City will give us prompt notice and otherwise perform the functions required by applicable law. 3. Quarantining of Client Data. Some services provided by Tyler require us to be in possession of the City Data. In the event we detect malware or other conditions associated with the City Data that are reasonably suspected of putting Tyler resources or other Tyler clients’ data at risk, we reserve the absolute right to move the City Data from its location within a multi -tenancy Tyler hosted environment to an isolated “quarantined” environment without advance notice. The City Data will remain in such quarantine for a period of at least six (6) months during which time we will review the Data, and all traffic associated with the Data, for signs of malware or other similar issues. If no issues are detected through such reviews during the six (6) month period of quarantine, we will coordinate with the City the restoration of the City Data to a non- quarantined environment. In the event the City Data must remain in quarantine beyond this six (6) month DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 60 C-16 period through no fault of Tyler’s, we reserve the right to require payment of additional fees for the extended duration of quarantine. We will provide an estimate of what those costs will be upon the City request. 4. City agrees to use all reasonable efforts to cooperate with and assist Tyler as may be reasonably required to meet the agreed upon project deadlines and other milestones for implementation. This cooperation includes at least working with Tyler to schedule the implementation-related services outlined in the Contract. Tyler will not be liable for failure to meet any deadlines and milestones when such failure is due to Force Majeure or to the failure by City’s personnel to provide such cooperation and assistance (either through action or omission). DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 61 D-1 EXHIBIT D: TYLER SERVICE LEVEL AGREEMENT (SLA) I. Agreement Overview This SLA operates in conjunction with, and does not supersede or replace any part of, the Tyler Technologies (Tyler) SaaS Agreement (Exhibit C). It outlines the information technology service levels that Tyler will provide to the City to ensure the availability of the application services that the City have requested Tyler to provide. This SLA does not apply to any Third Party SaaS Services. All other support services are documented in the Support Call Process. II. Definitions. Except as defined below, all defined terms have the meaning set forth in Exhibit C. Actual Attainment: The percentage of time the Tyler Software is available during a calendar quarter, calculated as follows: (Service Availability – Downtime) ÷ Service Availability. Client Error Incident: Any service unavailability resulting from the City’s applications, content or equipment, or the acts or omissions of any of the City’s service users or third-party providers over whom Tyler exercise no control. Downtime: Those minutes during Service Availability, as defined below, when all users cannot launch, login, search or save primary data in the Tyler Software. Downtime does not include those instances in which only a Defect is present. Emergency Maintenance: (1) maintenance that is required to patch a critical security vulnerability; (2) maintenance that is required to prevent an imminent outage of Service Availability; or (3) maintenance that is mutually agreed upon in writing by Tyler and the Client. Planned Downtime: Downtime that occurs during a Standard or Emergency Maintenance window. Service Availability: The total number of minutes in a calendar quarter that the Tyler Software is capable of receiving, processing, and responding to requests, excluding Planned Downtime, Client Error Incidents, denial of service attacks and Force Majeure. Standard Maintenance: Routine maintenance to the Tyler Software and infrastructure. Standard Maintenance is limited to five (5) hours per week. III. Service Availability a. The City’s Responsibilities Whenever the City experiences Downtime, the City must make a support call according to the procedures outlined in the Support Call Process below. The City will receive a support case number. b. Tyler Technology’s Responsibilities When the Tyler support team receives a call from the City that Downtime has occurred or is occurring, Tyler will work with the City to identify the cause of the Downtime (including whether it may be the result of Planned Downtime, a Client Error Incident, Denial of Service attack or Force Majeure). Tyler will also work with the City to resume normal operations. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 62 D-2 c. Client Relief Tyler’s targeted Attainment Goal is 100%. The City may be entitled to credits as indicated in the Client Relief Schedule found below. The City’s relief credit is calculated as a percentage of the SaaS fees paid for the calendar quarter. In order to receive relief credits, the City must submit a request through one of the channels listed in our Support Call Process within fifteen days (15) of the end of the applicable quarter. Tyler will respond to the City’s relief request within thirty (30) day(s) of receipt. The total credits confirmed by us will be applied to the SaaS Fee for the next billing cycle. Issuing of such credit does not relieve us of our obligations under this contract to correct the problem which created the service interruption. Client Relief Schedule Actual Attainment Client Relief 99.99% - 98.00% Remedial action will be taken 97.99% - 95.00% 4% Below 95.00% 5% IV. Maintenance Notifications Tyler performs Standard Maintenance during limited windows that are historically known to be reliably low-traffic times. If and when maintenance is predicted to occur during periods of higher traffic, Tyler will provide advance notice of those windows and will coordinate to the greatest extent possible with the City. Not all maintenance activities will cause application unavailability. However, if Tyler anticipates that activities during a Standard or Emergency Maintenance window may make the Tyler Software unavailable, the company will provide advance notice, as reasonably practicable, that the Tyler Software will be unavailable during the maintenance window. Schedule 1: Support Call Process Support Channels Tyler Technologies, Inc. provides the following channels of software support for authorized users*: (1) On-line submission (portal) – for less urgent and functionality-based questions, users may create support incidents through the Tyler Customer Portal available at the Tyler Technologies website. A built-in Answer Panel provides users with resolutions to most “how- to” and configuration- based questions through a simplified search interface with machine learning, potentially eliminating the need to submit the support case. (2) Email – for less urgent situations, users may submit emails directly to the software support group. (3) Telephone – for urgent or complex questions, users receive toll-free, telephone software support. * Channel availability may be limited for certain applications. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 63 D-3 Support Resources A number of additional resources are available to provide a comprehensive and complete support experience: (1) Tyler Website – www.tylertech.com – for accessing client tools, documentation, and other information including support contact information. (2) Tyler Search -a knowledge based search engine that lets the City search multiple sources simultaneously to find the answers the City needs, 24x7. (3) Tyler Community –provides a venue for all Tyler clients with current maintenance agreements to collaborate with one another, share best practices and resources, and access documentation. (4) Tyler University – online training courses on Tyler products. Support Availability Tyler Technologies support is available during the local business hours of 8 AM to 5 PM (Monday – Friday) across four US time zones (Pacific, Mountain, Central and Eastern). Tyler’s holiday schedule is outlined below. There will be no support coverage on these days. New Year’s Day Labor Day Martin Luther King, Jr. Day Thanksgiving Day Memorial Day Day after Thanksgiving Independence Day Christmas Day For support teams that provide after-hours service, Tyler Technologies will provide the City with procedures for contacting support staff after normal business hours for reporting Priority Level 1 Defects only. Upon receipt of such a Defect notification, Tyler will use commercially reasonable efforts to meet the resolution targets set forth below. Tyler will also make commercially reasonable efforts to be available for one pre-scheduled Saturday of each month to assist the City’s IT staff with applying patches and release upgrades, as well as consulting with them on server maintenance and configuration of the Tyler Software environment. Incident Handling Incident Tracking Every support incident is logged into Tyler’s Customer Relationship Management System and given a unique case number. This system tracks the history of each incident. The case number is used to track and reference open issues when clients contact support. The City may track incidents, using the case number, through Tyler’s Customer Portal or by calling software support directly. Incident Priority Each incident is assigned a priority level, which corresponds to the City’s needs. Tyler and the City will reasonably set the priority of the incident per the chart below. This chart is not intended to DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 64 D-4 address every type of support incident, and certain “characteristics” may or may not apply depending on whether the Tyler software has been deployed on customer infrastructure or the Tyler cloud. The goal is to help guide the City towards clearly understanding and communicating the importance of the issue and to describe generally expected response and resolution targets in the production environment only. References to a “confirmed support incident” mean that Tyler and the City have successfully validated the reported Defect/support incident. Priority Level Characteristics of Support Incident Resolution Targets* 1 Critical Support incident that causes (a) complete application failure or application unavailability; (b) application failure or unavailability in one or more of the client’s remote locations; or (c) systemic loss of multiple essential system functions. Tyler shall provide an initial response to Priority Level 1 incidents within one (1) business hour of receipt of the incident. Once the incident has been confirmed, Tyler shall use commercially reasonable efforts to resolve such support incidents or provide a circumvention procedure within one (1) business day. For non-hosted customers, Tyler’s responsibility for lost or corrupted data is limited to assisting the Client in restoring its last available database. 2 High Support incident that causes (a) repeated, consistent failure of essential functionality affecting more than one user or (b) loss or corruption of data. Tyler shall provide an initial response to Priority Level 2 incidents within four (4) business hours of receipt of the incident. Once the incident has been confirmed, Tyler shall use commercially reasonable efforts to resolve such support incidents or provide a circumvention procedure within ten (10) business days. For non-hosted customers, Tyler’s responsibility for loss or corrupted data is limited to assisting the Client in restoring its last available database. 3 Medium Priority Level 1 incident with an existing circumvention procedure, or a Priority Level 2 incident that affects only one user or for which there is an existing circumvention procedure. Tyler shall provide an initial response to Priority Level 3 incidents within one (1) business day of receipt of the incident. Once the incident has been confirmed, Tyler shall use commercially reasonable efforts to resolve such support incidents without the need for a circumvention procedure with the next published maintenance update or service pack, which shall occur at least quarterly. For non-hosted customers, Tyler’s responsibility for lost or corrupted data is limited to assisting the Client in restoring its last available database. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 65 D-5 Priority Level Characteristics of Support Incident Resolution Targets* 4 Non- critical Support incident that causes failure of non-essential functionality or a cosmetic or other issue that does not qualify as any other Priority Level. Tyler shall provide an initial response to Priority Level 4 incidents within two (2) business days of receipt of the incident. Once the incident has been confirmed, Tyler shall use commercially reasonable efforts to resolve such support incidents, as well as cosmetic issues, with a future version release. *Response and Resolution Targets may differ by product or business need Incident Escalation If Tyler is unable to resolve any priority level 1 or 2 defect as listed above or the priority of an issue has elevated since initiation, the City may escalate the incident to the appropriate resource, as outlined by each product support team. The corresponding resource will meet with the City and any Tyler staff to establish a mutually agreeable plan for addressing the defect. Remote Support Tool Some support calls may require further analysis of the Client’s database, processes or setup to diagnose a problem or to assist with a question. Tyler will, at its discretion, use an industry-standard remote support tool. Tyler’s support team must have the ability to quickly connect to the Client’s system and view the site’s setup, diagnose problems, or assist with screen navigation. More information about the remote support tool Tyler uses is available upon request. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 66 E-1 EXHIBIT E. TYLER BUSINESS TRAVEL REIMBURSEMENT POLICY Air Travel A. Reservations & Tickets The Travel Management Company (TMC) used by Tyler will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee’s total trip duration and the fare is within $100 (each way) of the lowest logical fare. If a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee’s total trip duration, the connecting flight should be accepted. Employees are encouraged to make advanced reservations to take full advantage of discount opportunities. Employees should use all reasonable efforts to make travel arrangements at least two (2) weeks in advance of commitments. A seven (7) day advance booking requirement is mandatory. When booking less than seven (7) days in advance, management approval will be required. Except in the case of international travel where a segment of continuous air travel is six (6) or more consecutive hours in length, only economy or coach class seating is reimbursable. Employees shall not be reimbursed for “Basic Economy Fares” because these fares are non- refundable and have many restrictions that outweigh the cost-savings. B. Baggage Fees Reimbursement of personal baggage charges are based on trip duration as follows: • Up to five (5) days = one (1) checked bag • Six (6) or more days = two (2) checked bags Baggage fees for sports equipment are not reimbursable. Ground Transportation C. Private Automobile Mileage Allowance – Business use of an employee’s private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will be calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 67 E-2 D. Rental Car Employees are authorized to rent cars only in conjunction with air travel when cost, convenience, and the specific situation reasonably require their use. When renting a car for Tyler business, employees should select a “mid-size” or “intermediate” car. “Full” size cars may be rented when three or more employees are traveling together. Tyler carries leased vehicle coverage for business car rentals; except for employees traveling to Alaska and internationally (excluding Canada), additional insurance on the rental agreement should be declined. E. Public Transportation Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or impractical. The actual fare plus a reasonable tip (15-18%) are reimbursable. In the case of a free hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately. F. Parking & Tolls When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented. Lodging Tyler’s TMC will select hotel chains that are well established, reasonable in price, and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Inn, and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates. “No shows” or cancellation fees are not reimbursable if the employee does not comply with the hotel’s cancellation policy. Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately. Employees are not authorized to reserve non-traditional short-term lodging, such as Airbnb, VRBO, and HomeAway. Employees who elect to make such reservations shall not be reimbursed. Meals and Incidental Expenses Employee meals and incidental expenses while on travel status within the continental U.S. are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 68 E-3 expenses. Per diem rates are available at www.gsa.gov/perdiem. Per diem for Alaska, Hawaii, U.S. protectorates and international destinations are provided separately by the Department of State and will be determined as required. Overnight Travel For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a trip are governed as set forth below. Departure Day Depart before 12:00 noon Lunch and dinner Depart after 12:00 noon Return Day Dinner Return before 12:00 noon Breakfast Return between 12:00 noon & 7:00 p.m. Breakfast and lunch Return after 7:00 p.m.* Breakfast, lunch and dinner *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows: Breakfast 15% Lunch 25% Dinner 60% Same Day Travel Employees traveling at least 100 miles to a site and returning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00 p.m.* *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. Internet Access – Hotels and Airports Employees who travel may need to access their e-mail at night. Many hotels provide free high speed internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee’s hotel charges for internet access it is reimbursable up to $10.00 per day. Charges for internet access at airports are not reimbursable. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 69 E-4 International Travel All international flights with the exception of flights between the U.S. and Canada should be reserved through TMC using the “lowest practical coach fare” with the exception of flights that are six (6) or more consecutive hours in length. In such event, the next available seating class above coach shall be reimbursed. When required to travel internationally for business, employees shall be reimbursed for photo fees, application fees, and execution fees when obtaining a new passport book, but fees related to passport renewals are not reimbursable. Visa application and legal fees, entry taxes and departure taxes are reimbursable. The cost of vaccinations that are either required for travel to specific countries or suggested by the U.S. Department of Health & Human Services for travel to specific countries, is reimbursable. Section 4, Meals & Incidental Expenses, and Section 2.b., Rental Car, shall apply to this section. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 70 F-1 EXHIBIT F. TYLER INVOICING AND PAYMENT POLICY . Invoicing: Tyler will invoice the City for the applicable software and services in Exhibit B (the Fee Schedule) as set forth below. If there is a conflict between the terms of this Exhibit F and Exhibit B the terms of Exhibit B take precedence. 1. SaaS Fees. SaaS Fees are invoiced on an annual basis beginning on the commencement of the initial one (1) year term as defined in Exhibit C. The City’s annual SaaS fees for the initial one (1) year term and first four (4) renewals are set forth in Exhibit B. Upon expiration of the initial term, the City’s annual SaaS fees will be at the rates specified in Exhibit B for each year through year 5. After that, the SaaS fees will be at the then negotiated rates. 2. Other Tyler Software and Services. 2.1 VPN Device: The fee for the VPN device will be invoiced upon installation of the VPN. 2.2 Implementation and Other Professional Services (including training): Implementation and other professional services (including training) are billed and invoiced as delivered, at the rates set forth in Exhibit B. T 2.3 Conversions: Fixed-fee conversions are invoiced 50% upon initial delivery of the converted Data, by conversion option, and 50% upon City acceptance to load the converted Data into the Live/Production environment, by conversion option. Where conversions are quoted as estimated, we will bill the City the actual services delivered on a time and materials basis. 2.4 Requested Modifications to the Tyler Software: Requested modifications to the Tyler Software are invoiced 50% upon delivery of specifications and 50% upon delivery of the applicable modification. The City must report any failure of the modification to conform to the specifications within thirty (30) days of delivery; otherwise, the modification will be deemed to be in compliance with the specifications after the 30-day window has passed. The City may still report Defects to us as set forth in this Agreement 2.5 Other Fixed Price Services: Other fixed price services are invoiced as delivered, at the rates set forth in Exhibit B. For the avoidance of doubt, where “Project Planning Services” are provided, payment will be due upon delivery of the Implementation Planning document. 3. Travel Expenses. Travel expenses for Tyler delivered services will be billed as incurred and in accordance with Tyler’s then-current Business Travel Policy, plus a 10% travel agency processing fee where applicable. Tyler’s current Business Travel Policy is attached as Exhibit E. Copies of receipts will be provided upon request; we reserve the right to charge the City an administrative fee depending on the extent of the City’s requests. Receipts for DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 71 F-2 miscellaneous items less than twenty-five dollars and mileage logs are not available. 4. Credit for Prepaid Maintenance and Support Fees for Tyler Software. The City will receive a credit for the maintenance and support fees prepaid for the Tyler Software for the time period commencing on the first day of the SaaS Term. Payment. Payment for undisputed invoices is due within forty-five (45) days of the invoice date. Tyler prefers to receive payments electronically. Tyler’s electronic payment information is available by contacting AR@tylertech.com. DocuSign Envelope ID: F70CC9D0-9D21-4A92-A508-3BD2D75AFA67 72 MEMORANDUM TO: Mayor and City Council FROM: Alixandra Feeley, Wheeler Business Manager THROUGH: Lisa Rigsby Peterson, Wheeler Executive Director Craig Moxon, Wheeler Production Manager MEMO DATE: August 23rd, 2022 MEETING DATE: September 13th, 2022 RE: Equipment Purchase | Resolution #103, project 2022-51518 REQUEST OF COUNCIL: Approval of the contract between the City of Aspen and Clearwing Systems Integration for the purchase of intelligent theatrical Lighting Fixtures for the Wheeler Opera House. This contract is for $70,952. SUMMARY AND BACKGROUND: This purchase is necessary to bring the Wheeler Opera House’s technical package in line with industry standards and artistic requirements. DISCUSSION: The Intelligent Lighting Package is a replacement of the current, dated conventional on-stage lighting equipment with new intelligent lighting fixtures. Intelligent lighting allows for creative effects, real-time movements/repositioning, and color mixing that traditional stage lighting does not offer all while being controlled remotely and without needing to be manually refocused. Technicians working from the ground can remotely focus intelligent lights, which increases safety, promotes staffing efficiency, and reduces labor costs. Intelligent lighting has increasingly become the centerpiece of many lighting packages, and this purchase will bring the Wheeler’s lighting package to industry standard thereby enhancing the experience for our staff, performers, and audiences alike. This purchase is required to replace many of the Wheeler’s dated conventional instruments, allowing our venue to maintain the highest quality productions, align with industry standards, and make good on our commitment to green technology. These intelligent lighting fixtures will be used for each event that occurs in the theatre. FINANCIAL IMPACTS: Denver-based Clearwing Systems Integration, LLC. thoroughly assessed our lighting needs with special consideration to lifetime use, integration with existing systems, and venue limitations. As a leading consultant and supplier of highly technical audio-visual and lighting systems equipment and software they offered the most competitive price, ensured compatibility of components, and offered a complete purchase option with timely delivery for a system that must be in place prior to the Wheeler’s peak performance season. Given their ability to meet the technical needs and delivery timeline, 73 it was decided to move forward with Clearwing Systems Integration as the preferred vendor under a sole-source arrangement. The 2022 budget includes an appropriation for $80,000 for this project and the contract with Clearwing Systems Integration, LLC is within the approved appropriation. •The equipment purchase is part of the Capital Asset Program, project 51518 Intelligent Lighting Fixtures •The project is funded in 2022 •The project was budgeted for $80,000 and the selected vendor bid is $70,952. No additional funds are needed for this purchase •Once staff are trained on the equipment there will be labor savings related to lighting design and programming. ENVIRONMENTAL IMPACTS: The instruments will replace many high energy consuming fixtures that will reduce energy consumption considerably going from 750W conventional to under 200W per fixture. ALTERNATIVES: The Wheeler Opera House could continue using the currently installed static theatrical lighting fixtures. Intelligent lighting fixtures are a mainstay of Artist’s riders, which may affect artist’s decision to perform at the Wheeler. Another alternative could be to rent intelligent fixtures on an as-needed basis, which are not readily available within the Roaring Fork Valley. As-needed rental spending, which would include additional shipping, labor, and coordination costs, would exceed purchase costs over time. RECOMMENDATIONS: Staff recommends approval of Resolution #103, Project 2022- 51518 CITY MANAGER COMMENTS: 74 DocuSign Envelope ID: 2D72E6FD-C75E-4F51-8F79-70911B831AE5 RESOLUTION #103 (Series of 2022) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN AND CLEARWING SYSTEMS INGETRATION AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a contract for, the purchase of intelligent theatrical lighting fixtures between the City of Aspen and Clearwing Systems Integration, 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 Contract for, the purchase of intelligent theatrical lighting fixtures between the City of Aspen and Clearwing Systems Integration a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager 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 13th day of September 2022. Torre, Mayor I, Nicole Henning, 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, September 13th, 2022. Nicole Henning, City Clerk 75 76 77 78 79 80 81 82 83 84 85 MEMORANDUM TO:Mayor and City Council FROM:Andy Rossello, Project Manager III THROUGH:Ryan Loebach, Sr. Project Manager Tyler Christoff, Director of Utilities MEMO DATE:August 23 rd, 2022 MEETING DATE:September 13th, 2022 RE:Resolution #105 Series of 2022 – Purchase of Switchgear to Replace Puppy Smith Substation REQUEST OF COUNCIL:Staff requests a contract award to Stuart C. Irby Co. in the amount of $209,260.00 for the purchase of an electric switchgear that will replace the Puppy Smith Substation that supplies electricity to the City of Aspen. PREVIOUS COUNCIL ACTION: Council has reviewed funding for this project through the 2022 budget approval process. BACKGROUND:The City of Aspen Puppy Smith Substation consists of 30-plus-year-old electric distribution equipment that was retrofitted for indoor use at the time of installation. City staff and their consultant engineers determined the existing substation equipment to be approaching the end of its useful life and due to its indoor location, presented a potential safety hazard to staff and City assets. In 2022, City staff hired consultant engineers Atwell to design replacement electric equipment that addresses these identified issues. Atwell recommended the installation of proprietary switchgear located exterior to the Puppy Smith Substation that will provide improved operator safety, accessibility, and control. City staff is seeking sole-source and supply contract approval from Council to purchase the recommended switchgear. DISCUSSION:City staff and consultant engineers considered several replacement equipment alternatives and are proposing to purchase the proprietary switchgear through a sole-source supply contract based on the following: The off-the-shelf switchgear provides remote monitoring and operation. These features are integrated into switchgear design and not “add-ons” or options, as was the case with other replacement equipment alternatives. Switchgear is a solid-state device utilizing dielectric insulation which requires no insulating oil or gas. 86 The switchgear can be installed exterior to the existing Puppy Smith Substation building therefore addressing future operator safety and providing continuous use of the existing facility during installation. The switchgear footprint requires minimal earthwork, screening, or modifications to accommodate its installation exterior to the existing Puppy Smith Substation building. Switchgear pricing provided on-site training, and an included 2-year maintenance and service contract at no additional cost. Purchasing the switchgear equipment nowmitigates current delays in the supply chain and will ensure delivery in time for scheduled installation in Summer/Fall 2023. FINANCIAL/BUDGET IMPACTS: Staff requests the sole-source purchase authority for the switchgear based on the above discussion. Stuart C. Irby Co. is the only authorized distributor in Colorado for the recommended switchgear. Installation costs have been planned for within the 2023 budget cycle. Total Project Expenditures Stuart C. Irby Company Supply Contract $209,260.00 Total Contract $209,260.00 Existing Budget 51309 Electric System Assessment Projects - 2021 $450,000.00 Project Design Expenditures to Date ($132,479.00) Total Budget $317,521.00 ENVIRONMENTAL IMPACTS:Staff is recommending purchasing a solid-state electric switchgear that does not utilize oil and/or gases for insulation. If released to the atmosphere, these materials could potentially be environmentally harmful. ALTERNATIVES: Staff believes this is a critical project to continue to provide reliable electrical service to all customers within our service territory and provide that service in a manner that meets industry standards for operator safety. Alternatively, City staff can continue to maintain the existing substation equipment and perform spot repairs which typically results electric service disruptions for utility customers due to lead time for parts and materials. RECOMMENDED ACTION:Staff requests the council approves the contract with Stuart C. Irby Co. in the amount of $209,260.00 for the purchase of an electric switchgear. PROPOSED MOTION:I move to approve Resolution #105 of 2022. CITY MANAGER COMMENTS: ATTACHMENTS: A. Supply Procurement Agreement with Stuart C. Irby Co. B. Resolution #105 of 2022 87 RESOLUTION #105 (Series of 2022) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN AND STUART C. IRBY Co. AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a supply procurement agreement for the purchase of an Innovative Switch Gear (ISG) between the City of Aspen and Stuart C. Irby Co., 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 the supply procurement agreement for the purchase of an Innovative Switch Gear (ISG), between the City of Aspen and Stuart C. Irby Co., a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager 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 13 th day of September 2022. Torre, Mayor I, Nicole Henning, 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, September 13th, 2022. Nicole Henning, City Clerk 88 DocuSign Envelope ID: 50888B43-17D5-49D7-9CFE-BFC169A5B6E7 Attachment A 89 DocuSign Envelope ID: 50888B43-17D5-49D7-9CFE-BFC169A5B6E7 90 DocuSign Envelope ID: 50888B43-17D5-49D7-9CFE-BFC169A5B6E7 91 DocuSign Envelope ID: 50888B43-17D5-49D7-9CFE-BFC169A5B6E7 92 DocuSign Envelope ID: 50888B43-17D5-49D7-9CFE-BFC169A5B6E7 93 Cooper Power Systems – Eaton‐ISG • 5069 Silver Peaks Avenue, Unit #6 • Dacono, CO 80514 • 720‐440‐9404  Confidential Information         Quote Date:  August 10, 2022  CPS Proposal #:  23128876  ISG Job Reference:  220067  Expires:  September 12,2022  Terms:  Net 30   Shipping/Freight: FOB Origin Freight Allowed  Stuart C Irby  Attn: Joseph Snodgrass     Subject:  City of Aspen – Puppy Smith Substation – 5‐Way Switchgear    Eaton‐ISG is proposing a Padmount 5‐Way switchgear solution based upon the Specification 22000102‐2701 and  provided 22102‐E‐100‐RB Rev B. Per your request, we are pleased to as follows:    Item #1 – PS505066666‐50XA‐A0X   Package includes:    (1) of Item #1A – 5 Way Padmount Single Side Switchgear    (1) of Item #1B – SEL 751 Control Cabinet   (1) of Item #1C – 27 kV Potential Transformers     Item #1A – ISG Catalog # PS505066666‐50XA – 5 Way Single Side Switchgear   Ratings  o 27 kV ratings   16 kA symmetrical ‐ Momentary, Make and Latch, Fault Close, and Fault Interrupting   25.6 kA asymmetrical ‐ Momentary, Make and Latch, Fault Close, and Fault Interrupting   41.6 kA Peak current    125 kV BIL ‐ Note: Reduced to 95 kV BIL when internal 15 kV voltage sensors are installed   Configuration – 5 Ways  o (5) VFI protected Ways with Visible Open Isolation Point device   (15) 600‐amp bushings   (5) 6‐pin Trip and Status Connector   (5) 4‐pin CT Connectors ‐ one per VFI‐protected Way   (15) Internally mounted 600:1 current transformers installed on each bushing   (5) CT Shorting Plugs   Switchgear Construction  o Switch tank ‐ 304 stainless steel Sealed, Dead‐front  o Single‐Side Padmount enclosure with Munsell Green Powder Coat Finish  o (5) Motor Operator bracket provisions installed on each Way   o (10) Visible Open Windows  o (15) Load‐break parking stands  o Provisions for future mounting of external potential transformers on bottom of the switch tank  o ½” Diameter Grounding Rod     Similar to Eaton‐ISG Drawing # PS505066666‐501A‐A02‐P2 with the following modifications:  o Paint Code:   P0 – Smooth Munsell Green 7GY3.29/1.5  o Remove:    Qty (2) – Motor Operators   Qty (1) – Potential Transformer  94 Cooper Power Systems – Eaton‐ISG • 5069 Silver Peaks Avenue, Unit #6 • Dacono, CO 80514 • 720‐440‐9404  Confidential Information       PAGE 2    Item #1B – CA‐201XX ‐ SEL 751 Padmount Overcurrent Protection Control Cabinet    Configuration  o (5) SEL 751 relay    MOT: 751002B3B0X0XL11F21 – Customer to Verify/Modify   1 Amp secondary CT inputs    DNP3   LEA inputs  o Power supply / charging system    Including 24v backup battery  o 8 Port Ethernet Switch – 8 copper / 2 Fiber ports  o (5) ABB FT1 test switch, one per VFI protected Way     Construction  o 304 stainless steel with utility green powder coat finish   o Padmount style door   o Heater and Thermostat  o Connectors will be located on the bottom of the control cabinet   o Cable enclosure will protect and enclose connectors to the high voltage enclosure      Connections on control cabinet   o (5) 6‐pin Connectors – Status and Trip Circuit   o (5) 4‐pin Connectors – CT Inputs   o (5) 7‐pin Connectors ‐ Motor Operators – power and status    o (1) 3‐pin AC voltage inputs from PTs for control power   o (2) Cord grip for communications     Cables   o (5) M/F cables for Source Trip and Status  o (5) M/F cables for CT inputs  o (2) F plug / pigtail – for 120v AC voltage input from external PT      Similar to Eaton‐ISG Drawing # CA‐20105‐SCH    Item #1C – 27 kV Potential Transformer     ABB 25 kV – VIL‐12S   XXXX kV / XXXXX kV line to ground (Customer to provide)   Includes:   o Padmount cradle and bracket with horizontal facing terminations   Requires but not supplied:  o 200 amp Feed‐throughs for 200 amp bushing wells or ETPs to be installed on back of 600‐amp T‐bodies on “B”  phase of both Source Ways       Item #1 – ISG Catalog # PS505066666‐50XA‐A0X  freight prepaid and allowed     95 Cooper Power Systems – Eaton‐ISG • 5069 Silver Peaks Avenue, Unit #6 • Dacono, CO 80514 • 720‐440‐9404  Confidential Information       PAGE 3    Exceptions and Clarifications to the Technical Specification     Section 1.2.A Clarification: Eaton‐ISG is tested to the IEEE standard C57.12.28, C37.74, C37.60 & IEEE 386. IEEE  C37.20 and C37.58 standards for Metal Clad switchgear does not apply to Padmount equipment being  proposed.  Section 1.2.B Exception: Eaton‐ISG is not tested to any IEC standards.  IEC 60507 is not applicable to Eaton‐ISG  switchgear.  Section 1.3.B.2 Exception: Section 3.3.C.5 not provided at the time of quote. Eaton‐ISG switchgear is a 304 stainless  steel solution.  Section 1.3.B.4 Exception: Eaton‐ISG does not have a spare parts list or any special tools to operate the switchgear.   Section 3.1.C.3 Clarification: Eaton‐ISG switchgear is rated for 125 kV BIL. The rating is reduced to 95 kV BIL when  internal 15 kV voltage sensors are installed.  Section 3.2.O Exception: Eaton‐ISG switchgear is a solid welded dead‐front gear that doesn’t allow for cabinet  section.  This is a typical requirement for Metal‐Clad or Metal‐Enclosed switchgear. The utility  metering cabinet will have to be provided by others, not included in this proposal.  Section 3.2.P Exception: The utility metering enclosure will have to be provided by others, not included in this  proposal.      Approval Drawings:  First article submittal drawings for approval will be issued within 6 weeks after receipt of  acceptable purchase order.  Engineering department will assign appropriate catalog number for this switchgear  assembly at that time.  Note:  Drawing approvals are only required on the initial order  Note:  When the order is Hold for Approval Drawing Submittal, the Approval Drawings must be returned to the  submitting sales office with a Release for Manufacture within 45 days.  Should the Release for Manufacture arrive after  45 days, an escalation schedule shall be applied as follows:   Greater than 45 days – 2% total price escalation   Greater than 90 days – 3% total price escalation   Greater than 120 days – 4% total price escalation   Greater than 150 days – Order cancelled with payment to Seller of reasonable termination charges, including progress  billings and all incurred direct manufacturing costs.    Manufacturing Lead‐time: For any of the switchgear packages, standard manufacturing lead‐time is 52 weeks after  receipt of signed approval drawings, and/or “release to manufacture” from our customer.    Project Benchmark Schedule:  Based on the lead times presented above, and estimated placeholder for customer to  approve and return submittal drawings, below please find the estimated project schedule:  Week 0 – Receipt of acceptable purchase order  Week 6 – Submittal Drawings prepared and sent to customer for approval.   Week 8 – Customer to review, approve, sign, date and return submittal drawings.  Production phase commences  Week 60 – Material is tested, packaged, and shipped   Week 61  – Material is delivered  Note: Quoted lead times are based on current factory loading and are subject to change.  Project schedule may be  adjusted if Submittal Drawings & Customer Drawing Approval allocated time frames differ from above estimates.          96 Cooper Power Systems – Eaton‐ISG • 5069 Silver Peaks Avenue, Unit #6 • Dacono, CO 80514 • 720‐440‐9404  Confidential Information       PAGE 4  Pricing and lead times do not include the delays or costs associated with commodity scarcity, witness of testing or final  inspections.  If required, price consideration and ship date change may be considered.    Programming Services – SEL Controls:    Eaton’s ISG‐SD Switchgear provides SEL Control programming services for the following:  o Auto‐Transfer programming with all ATS equipment ordered  o Push buttons operation for local motor operator  o Enter test values during factory testing to verify trip functionality   Eaton’s ISG‐SD Switchgear does not provide SEL Control programming services for the following:  o Over‐current protection settings  o SCADA mapping   Customer responsible for final Trip or other Protection settings per customer’s needs    Product/Design Testing  WITNESS / INSPECTON VISIT:  Customer Witness of Routine Test/Final Inspect: $2,300.00 USD per unit, +1 week  Customer Final Inspection:                                     $1,700.00 USD per unit, +1 week    Commercial:  In the event Buyer cancels this agreement after award, Buyer may terminate upon payment to Seller of  reasonable termination charges, including progress billings and all incurred direct manufacturing costs.    Proposal Details  Terms of Sale:   FOB Origin, Freight Allowed  Payment Terms:   Net 30 days from invoice date    Seller shall not be responsible for any failure to perform, or delay in performance of, its obligations resulting from the  COVID‐19 pandemic or any future epidemic, and Buyer shall not be entitled to any damages resulting thereof.     Pricing will be reviewed upon the announcement of any tariffs pertaining to the importation or exportation of key  components or power distribution products in their entirety.    Orders must be issued to “Cooper Power Systems, LLC” and are subject to Eaton’s Terms and Conditions of Sale that are  included or have been provided previously to the buyer.     97 Cooper Power Systems – Eaton‐ISG • 5069 Silver Peaks Avenue, Unit #6 • Dacono, CO 80514 • 720‐440‐9404  Confidential Information         98 Cooper Power Systems – Eaton‐ISG • 5069 Silver Peaks Avenue, Unit #6 • Dacono, CO 80514 • 720‐440‐9404  Confidential Information           99 Staff has reviewed the design of the City of Aspen Substation Replacement Project and has 90% design drawings complete. The Switchgear design has investigated two products, Innovative Switch Gear (ISG) and Vista Switch Gear. Both the devices the design team specified have automation and remote-control capability. Staff believes the ISG is a superior device for the specific application and proposes sole sourcing this product for the Substation Replacement project. ISG switchgear has a footprint comparable to the current installation and should not require additional earthwork, screening, or topographical modifications to accommodate its installation. The ISG is a solid-state device utilizing dielectric insulation and no insulating oil or gas. The ISG also has integrated relays that allow for remote monitoring and operation. These relays are integrated into the design and not “add-ons” or options. Staff research indicates ISG is at the forefront of integration with software manufacturers and works agnostically with SCADA and modeling software providers. The company’s goal is to deliver data in whatever format is most convenient to the Utility. Additionally, ISG offers on-site training, and an included 2-year maintenance and service contract at no additional costs. The City’s Design consultant, Atwell, was convinced ISG is a superior device for our application. Staff is not aware of any other products that meet these important requirements and goals for this project. DocuSign Envelope ID: 50888B43-17D5-49D7-9CFE-BFC169A5B6E7 100 ROUTING SLIP Revision 12/08/2021 Page 1 of 1 ROUTING SLIP Project Information Project Name Purchase of Eaton-ISG Innovative Switch Gear Project Number Capital Project Number 51309 Project Manager Andy Rossello, P.E. Department Utilities Estimated Cost $209,260.00 Budgeted Amount $225,000 Account Codes 431.323.81200.57540.51309 Project Description Give clear description of the project, work to be done, or items purchased The Purchase of an Eaton-ISG Innovative Switchgear to replace existing switches and reclosers at Puppy Smith Substation. Vendor Selection Process Describe how vendor was selected Sole Source (See attached) Contract Value Sole Source & State Bid Dept. Head Signature Procurement Officer Signature City Attorney Signature City Manager Signature Resolution: Meeting Date & Number (Required for Contracts $50,000 +) DocuSign Envelope ID: 50888B43-17D5-49D7-9CFE-BFC169A5B6E7 8/23/2022 | 10:51:10 AM MDT 2022-288 8/23/2022 | 10:52:36 AM MDT 8/23/2022 | 12:55:21 PM MDT 8/23/2022 | 4:27:45 PM PDT 101 MEMORANDUM TO: Mayor and City Council FROM: Alixandra Feeley, Wheeler Business Manager THROUGH: Lisa Rigsby Peterson, Wheeler Executive Director Nicole Levesque, Wheeler Marketing Manager MEMO DATE: August 30th, 2022 MEETING DATE: September 13th, 2022 RE: Website Redesign | Resolution #108, project 2022-50519 REQUEST OF COUNCIL: Approval of the contract between the City of Aspen and Clique Studios for the purchase of website development, design, and hosting for the Wheeler Opera House. This contract is for $80,000. SUMMARY AND BACKGROUND: This purchase is necessary to address the outdated design and functionality of the Wheeler website. The intended outcome is to create a website with responsive design, seamless navigation, and an intuitive content management system. As a primary platform for information about upcoming events and to highlight the rich history of the building, the review committee recognized the importance of bringing the website up to Wheeler standards of excellence and accessibility. The committee’s goal was to find a vendor that would understand Wheeler needs for communicating with our audience and community, while putting technology first in delivering the best solution. DISCUSSION: Proposals were evaluated and reviewed on the following criteria: experience and qualifications, project understanding, vendor approach, fee proposal and schedule, and references. Criteria were individually weighted resulting in a final cumulative score and the top three applicants met with the evaluation committee. The RFP committee (comprised of Wheeler Staff) recommended that Clique Studios be awarded the contract. A primary factor in evaluating qualifications was experience with performing arts, venues, and third-party ticketing systems. Of the 23 bids received, only 3 matched those very specific qualifications, with another 6 having some adjacent experience with event based or culture organizations. The review committee decided Clique Studios had the most extensive experience working with performing arts venues and ticketing system integrations, varied both in size and history or organizations and both simple and complex ticketing system integrations. 102 Project and vendor approach were also evaluated in the areas of understanding ADA site requirements and compliance, organizing content in ways that are intuitive to site visitors, the ability to provide training on the new site, and vendor accessibility to the client throughout the project schedule. It was important to the review committee to find a vendor dedicated to the discovery process of understanding how our community and audience utilize our website. Clique Studios’ presentation and proposal meeting excelled in all these areas with a focus on leveraging technology to meet client and consumer needs. Of the 23 bids received, 9 were above budget, and the remaining were at or below. While cost was considered in evaluation, all applications were reviewed in entirety with criteria weighted across experience & qualifications, project understanding, vendor approach, cost and references. Clique Studios has been in the creative digital transformation business for over a decade. This award-winning team of strategists, designers, and engineers operates under the philosophy of making a positive impact on their partners and communities through the power of creativity. Overall, our review committee awarded a top score to Clique Studios. Statements of support included: . •Award-winning team of strategists, designers, and engineers. •Commitment to removing barriers to access in the work they deliver. •Experience integrating multiple ticketing platforms, including AXS, Salesforce, Spectrix, Ticketmaster, Eventbrite, RocketRez, and BlackBaud. •Forward thinking approach to technology to improve both user experience and overall functionality •Phased approach to launching features “as needed” during contract duration in to promote seasonal goals without short cutting for the future. •Professional references revealed positive experiences, meaningful discovery process, reliable and responsive, vendor stayed on budget and was great at communicating status and timeline of deliverables. Top clients include: •Red Rocks Amphitheatre – music venue •Parker Arts, aka PACE – performing arts center •Apollo in New York – historic theater FINANCIAL IMPACTS: The 2022 budget includes $80,000 within the Arts and Culture Fund capital project appropriations and is sufficient to fully fund this contract as requested. 103 ENVIRONMENTAL IMPACTS: There are no perceived environmental impacts involved in the execution and completion of this project. ALTERNATIVES: If this project were not to move forward, the Wheeler website would continue as is while we reengage in the RFP process. The outdated platform and architecture would continue to cause issues in updating content and limit improved functionality, accessibility, and visibility. RECOMMENDATIONS: Staff recommends approval of Resolution #108, Project 2022- 50519 CITY MANAGER COMMENTS: 104 DocuSign Envelope ID: 2D72E6FD-C75E-4F51-8F79-70911B831AE5 RESOLUTION #103 (Series of 2022) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN AND CLIQUE STUDIOS, LLC AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a contract for, the redesign of the Wheeler Opera House website between the City of Aspen and Clique Studios, LLC, 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 Contract for, the redesign of the Wheeler Opera House website between the City of Aspen and Clique Studios, LLC a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager 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 13th day of September 2022. Torre, Mayor I, Nicole Henning, 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, September 13th, 2022. Nicole Henning, City Clerk 105 Agreement Professional Services Page 0 CITY OF ASPEN STANDARD FORM OF AGREEMENT PROFESSIONAL SERVICES City of Aspen Contract No.: 2022-211. AGREEMENT made this 24 day of August, in the year 2022. BETWEEN the City: Contract Amount: The City of Aspen c/o Sara Ott 427 Rio Grande Place Aspen, Colorado 81611 Phone: (970) 920-5079 And the Professional: Clique Studios c/o Sean Maconachy 1644 Platte St Denver, Colorado, 80202 United States Phone: 312-319-4744 For the Following Project: Wheeler Opera House Website Exhibits appended and made a part of this Agreement: The City and Professional agree as set forth below. If this Agreement requires the City to pay an amount of money in excess of $50,000.00 it shall not be deemed valid until it has been approved by the City Council of the City of Aspen. City Council Approval: Date: September 2022 Resolution No.:_TBA Exhibit A: Scope of Work. Exhibit B: Fee Schedule. Total: $80,000.00 DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 106 Agreement Professional Services Page 1 1. Scope of Work. Professional shall perform in a competent and professional manner the Scope of Work as set forth at Exhibit A attached hereto and by this reference incorporated herein. 2. Completion. Professional shall commence Work immediately upon receipt of a written Notice to Proceed from the City and complete all phases of the Scope of Work as expeditiously as is consistent with professional skill and care and the orderly progress of the Work in a timely manner. The parties anticipate that all Work pursuant to this Agreement shall be completed no later than 6 months after starting date Project start date will coincide with initial kick-off meeting date, to be scheduled after final contract approval. Upon request of the City, Professional shall submit, for the City's approval, a schedule for the performance of Professional's services which shall be adjusted as required as the project proceeds, and which shall include allowances for periods of time required by the City's project engineer for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This schedule, when approved by the City, shall not, except for reasonable cause, be exceeded by the Professional. 3. Payment. In consideration of the work performed, City shall pay Professional on a time and expense basis for all work performed. The hourly rates for work performed by Professional shall not exceed those hourly rates set forth at Exhibit B appended hereto. Except as otherwise mutually agreed to by the parties the payments made to Professional shall not initially exceed the amount set forth above. Professional shall submit, in timely fashion, invoices for work performed. The City shall review such invoices and, if they are considered incorrect or untimely, the City shall review the matter with Professional within ten days from receipt of the Professional's bill. 4. Non-Assignability. Both parties recognize that this Agreement is one for personal services and cannot be transferred, assigned, or sublet by either party without prior written consent of the other. Sub-Contracting, if authorized, shall not relieve the Professional of any of the responsibilities or obligations under this Agreement. Professional shall be and remain solely responsible to the City for the acts, errors, omissions or neglect of any subcontractors’ officers, agents and employees, each of whom shall, for this purpose be deemed to be an agent or employee of the Professional to the extent of the subcontract. The City shall not be obligated to pay or be liable for payment of any sums due which may be due to any sub-contractor. 5. Termination of Procurement. The sale contemplated by this Agreement may be canceled by the City prior to acceptance by the City whenever for any reason and in its sole discretion the City shall determine that such cancellation is in its best interests and convenience. 6. Termination of Professional Services. The Professional or the City may terminate the Professional Services component of this Agreement, without specifying the reason therefor, by giving notice, in writing, addressed to the other party, specifying the effective date of the termination. No fees shall be earned after the effective date of the termination. Upon any termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports or other material prepared by the Professional pursuant to this Agreement shall become the property of the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for damages sustained by the City by virtue of any breach of this Agreement by the Professional, and the City may withhold any payments to the Professional for the purposes of set-off until such time as the exact amount of damages due the City from the Professional may be determined. DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 107 Agreement Professional Services Page 2 7. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this agreement shall result in, or be construed as establishing an employment relationship. Professional shall be, and shall perform as, an independent Contractor who agrees to use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or servant of Professional shall be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this contract. The manner and means of conducting the work are under the sole control of Professional. None of the benefits provided by City to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Professional. Professional shall be solely and entirely responsible for its acts and for the acts of Professional's agents, employees, servants and subcontractors during the performance of this contract. Professional shall indemnify City against all liability and loss in connection with, and shall assume full responsibility for payment of all federal, state and local taxes or contributions imposed or required under unemployment insurance, social security and income tax law, with respect to Professional and/or Professional's employees engaged in the performance of the services agreed to herein. 8. Indemnification. Professional agrees to indemnify and hold harmless the City, its officers, employees, insurers, and self-insurance pool, from and against all liability, claims, and demands, on account of injury, loss, or damage, including without limitation claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever, which arise out of or are in any manner connected with this contract, to the extent and for an amount represented by the degree or percentage such injury, loss, or damage is caused in whole or in part by, or is claimed to be caused in whole or in part by, the wrongful act, omission, error, professional error, mistake, negligence, or other fault of the Professional, any subcontractor of the Professional, or any officer, employee, representative, or agent of the Professional or of any subcontractor of the Professional, or which arises out of any workmen's compensation claim of any employee of the Professional or of any employee of any subcontractor of the Professional. The Professional agrees to investigate, handle, respond to, and to provide defense for and defend against, any such liability, claims or demands at the sole expense of the Professional, or at the option of the City, agrees to pay the City or reimburse the City for the defense costs incurred by the City in connection with, any such liability, claims, or demands. If it is determined by the final judgment of a court of competent jurisdiction that such injury, loss, or damage was caused in whole or in part by the act, omission, or other fault of the City, its officers, or its employees, the City shall reimburse the Professional for the portion of the judgment attributable to such act, omission, or other fault of the City, its officers, or employees. 9. Professional's Insurance. (a) Professional agrees to procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. The Professional shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 8 above by reason of its failure to procure or maintain DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 108 Agreement Professional Services Page 3 insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. (b) Professional shall procure and maintain, and shall cause any subcontractor of the Professional to procure and maintain, the minimum insurance coverages listed below. Such coverages shall be procured and maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. (i) Worker's Compensation insurance to cover obligations imposed by applicable laws for any employee engaged in the performance of work under this contract, and Employers' Liability insurance with minimum limits of ONE MILLION DOLLARS ($1,000,000.00) for each accident, ONE MILLION DOLLARS ($1,000,000.00) disease - policy limit, and ONE MILLION DOLLARS ($1,000,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted for the Worker's Compensation requirements of this paragraph. (ii) Commercial General Liability insurance with minimum combined single limits of TWO MILLION DOLLARS ($2,000,000.00) each occurrence and THREE MILLION DOLLARS ($3,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall include coverage for explosion, collapse, and underground hazards. The policy shall contain a severability of interests provision. (iii) Comprehensive Automobile Liability insurance with minimum combined single limits for bodily injury and property damage of not less than ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate with respect to each Professional's owned, hired and non- owned vehicles assigned to or used in performance of the Scope of Work. The policy shall contain a severability of interests provision. If the Professional has no owned automobiles, the requirements of this Section shall be met by each employee of the Professional providing services to the City under this contract. (iv) Professional Liability insurance with the minimum limits of ONE MILLION DOLLARS ($1,000,000) each claim and TWO MILLION DOLLARS ($2,000,000) aggregate. (c) The policy or policies required above shall be endorsed to include the City and the City's officers and employees as additional insureds. Every policy required above shall be primary insurance, and any insurance carried by the City, its officers or employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Professional. No additional insured endorsement DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 109 Agreement Professional Services Page 4 to the policy required above shall contain any exclusion for bodily injury or property damage arising from completed operations. The Professional shall be solely responsible for any deductible losses under any policy required above. (d) The certificate of insurance provided to the City shall be completed by the Professional's insurance agent as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect, and shall be reviewed and approved by the City prior to commencement of the contract. No other form of certificate shall be used. The certificate shall identify this contract and shall provide that the coverages afforded under the policies shall not be canceled, terminated or materially changed until at least thirty (30) days prior written notice has been given to the City. (e) Failure on the part of the Professional to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of contract upon which City may immediately terminate this contract, or at its discretion City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies so paid by City shall be repaid by Professional to City upon demand, or City may offset the cost of the premiums against monies due to Professional from City. (f) City reserves the right to request and receive a certified copy of any policy and any endorsement thereto. (g) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations (presently $350,000.00 per person and $990,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. 10. City's Insurance. The parties hereto understand that the City is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA Proper- ty/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Risk Management Department and are available to Professional for inspection during normal business hours. City makes no representations whatsoever with respect to specific coverages offered by CIRSA. City shall provide Professional reasonable notice of any changes in its membership or participation in CIRSA. 11. Completeness of Agreement. It is expressly agreed that this agreement contains the entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or written representations, agreements, warranties or promises pertaining to the project matter thereof not expressly incorporated in this writing. 12. Notice. Any written notices as called for herein may be hand delivered or mailed by certified mail return receipt requested to the respective persons and/or addresses listed above. 13. Non-Discrimination. No discrimination because of race, color, creed, sex, marital status, affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 110 Agreement Professional Services Page 5 religion shall be made in the employment of persons to perform services under this contract. Professional agrees to meet all of the requirements of City's municipal code, Section 15.04.570, pertaining to non-discrimination in employment. 14. Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be waived except by the written consent of the City, and forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver of any term, covenant, or condition to be performed by Professional to which the same may apply and, until complete performance by Professional of said term, covenant or condition, the City shall be entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or indulgence. 15. Execution of Agreement by City. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. Notwithstanding anything to the contrary contained herein, this Agreement shall not be binding upon the City unless duly executed by the Mayor of the City of Aspen (or a duly authorized official in his absence) following a Motion or Resolution of the Council of the City of Aspen authorizing the Mayor (or a duly authorized official in his absence) to execute the same. 16. Worker Without Authorization prohibited – CRS §8-17.5-101 & §24-76.5-101 Purpose. During the 2021 Colorado legislative session, the legislature passed House Bill 21- 1075 that amended current CRS §8-17.5-102 (1), (2)(a), (2)(b) introductory portion, and (2)(b)(III) as it relates to the employment of and contracting with a “worker without authorization” which is defined as an individual who is unable to provide evidence that the individual is authorized by the federal government to work in the United States. As amended, the current law prohibits all state agencies and political subdivisions, including the Owner, from knowingly hiring a worker without authorization to perform work under a contract, or to knowingly contract with a Consultant who knowingly hires with a worker without authorization to perform work under the contract. The law also requires that all contracts for services include certain specific language as set forth in the statutes. The following terms and conditions have been designed to comply with the requirements of this new law. Definitions. The following terms are defined by this reference are incorporated herein and in any contract for services entered into with the Owner. 1. "E-verify program" means the electronic employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, that is jointly administered by the United States Department of Homeland Security and the social security Administration, or its successor program. 2. "Department program" means the employment verification program established pursuant to Section 8-17.5-102(5)(c). 3. "Public Contract for Services" means this Agreement. DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 111 Agreement Professional Services Page 6 4. "Services" means the furnishing of labor, time, or effort by a Consultant or a subconsultant not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. 5. “Worker without authorization” means an individual who is unable to provide evidence that the individual is authorized by the federal government to work in the United States By signing this document, Consultant certifies and represents that at this time: 1. Consultant shall confirm the employment eligibility of all employees who are newly hired for employment to perform work under the public contract for services; and 2. Consultant has participated or attempted to participate in either the e-verify program or the department program in order to verify that new employees are not workers without authorization. Consultant hereby confirms that: 1. Consultant shall not knowingly employ or contract with a worker without authorization to perform work under the Public Contract for Services. 2. Consultant shall not enter into a contract with a subconsultant that fails to certify to the Consultant that the subconsultant shall not knowingly employ or contract with a worker without authorization to perform work under the Public Contract for Services. 3. Consultant has confirmed the employment eligibility of all employees who are newly hired for employment to perform work under the public contract for services through participation in either the e-verify program or the department program. 4. Consultant shall not use the either the e-verify program or the department program procedures to undertake pre-employment screening of job applicants while the Public Contract for Services is being performed. If Consultant obtains actual knowledge that a subconsultant performing work under the Public Contract for Services knowingly employs or contracts with a worker without authorization, Consultant shall: 1. Notify such subconsultant and the Owner within three days that Consultant has actual knowledge that the subconsultant is employing or subcontracting with a worker without authorization: and 2. Terminate the subcontract with the subconsultant if within three days of receiving the notice required pursuant to this section the subconsultant does not stop employing or contracting with the worker without authorization; except that Consultant shall not terminate the Public Contract for Services with the subconsultant if during such three days the subconsultant provides information to establish that the subconsultant has not knowingly employed or contracted with a worker without authorization. DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 112 Agreement Professional Services Page 7 Consultant shall comply with any reasonable request by the Colorado Department of Labor and Employment made in the course of an investigation that the Colorado Department of Labor and Employment undertakes or is undertaking pursuant to the authority established in Subsection 8- 17.5-102 (5), C.R.S. If Consultant violates any provision of the Public Contract for Services pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the Owner may terminate this Agreement. If this Agreement is so terminated, Consultant shall be liable for actual damages to the Owner arising out of Consultant’s violation of Subsection 8-17.5-102, C.R.S. It is agreed that neither this agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. If any of the provisions of this agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. 17. Warranties Against Contingent Fees, Gratuities, Kickbacks and Conflicts of Interest. (a) Professional warrants that no person or selling agency has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Professional for the purpose of securing business. (b) Professional agrees not to give any employee of the City a gratuity or any offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to this Agreement, or to any solicitation or proposal therefore. (c) Professional represents that no official, officer, employee or representative of the City during the term of this Agreement has or one (1) year thereafter shall have any interest, direct or indirect, in this Agreement or the proceeds thereof, except those that may have been disclosed at the time City Council approved the execution of this Agreement. (d) In addition to other remedies it may have for breach of the prohibitions against contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right to: 1. Cancel this Purchase Agreement without any liability by the City; 2. Debar or suspend the offending parties from being a Professional, contractor or subcontractor under City contracts; 3. Deduct from the contract price or consideration, or otherwise recover, the value of anything transferred or received by the Professional; and DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 113 Agreement Professional Services Page 8 4. Recover such value from the offending parties. 18. Fund Availability. Financial obligations of the City payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. If this Agreement contemplates the City utilizing state or federal funds to meet its obligations herein, this Agreement shall be contingent upon the availability of those funds for payment pursuant to the terms of this Agreement. 19. General Terms. (a) It is agreed that neither this Agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. (b) If any of the provisions of this Agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. (c) The parties acknowledge and understand that there are no conditions or limitations to this understanding except those as contained herein at the time of the execution hereof and that after execution no alteration, change or modification shall be made except upon a writing signed by the parties. (d) This Agreement shall be governed by the laws of the State of Colorado as from time to time in effect. Venue is agreed to be exclusively in the courts of Pitkin County, Colorado. 20. Electronic Signatures and Electronic Records This Agreement and any amendments hereto may be executed in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one agreement binding on the Parties, notwithstanding the possible event that all Parties may not have signed the same counterpart. Furthermore, each Party consents to the use of electronic signatures by either Party. The Scope of Work, and any other documents requiring a signature hereunder, may be signed electronically in the manner agreed to by the Parties. The Parties agree not to deny the legal effect or enforceability of the Agreement solely because it is in electronic form or because an electronic record was used in its formation. The Parties agree not to object to the admissibility of the Agreement in the form of an electronic record, or a paper copy of an electronic documents, or a paper copy of a document bearing an electronic signature, on the grounds that it is an electronic record or electronic signature or that it is not in its original form or is not an original. 20. Successors and Assigns. This Agreement and all of the covenants hereof shall inure to the benefit of and be binding upon the City and the Professional respectively and their agents, representatives, employee, successors, assigns and legal representatives. Neither the City nor the Professional shall have the right to assign, transfer or sublet its interest or obligations hereunder without the written consent of the other party. DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 114 Agreement Professional Services Page 9 21. Third Parties. This Agreement does not and shall not be deemed or construed to confer upon or grant to any third party or parties, except to parties to whom Professional or City may assign this Agreement in accordance with the specific written permission, any right to claim damages or to bring any suit, action or other proceeding against either the City or Professional because of any breach hereof or because of any of the terms, covenants, agreements or conditions herein contained. 22. Attorney’s Fees. In the event that legal action is necessary to enforce any of the provisions of this Agreement, the prevailing party shall be entitled to its costs and reasonable attorney’s fees. 23. Waiver of Presumption. This Agreement was negotiated and reviewed through the mutual efforts of the parties hereto and the parties agree that no construction shall be made or presumption shall arise for or against either party based on any alleged unequal status of the parties in the negotiation, review or drafting of the Agreement. 24. Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion. Professional certifies, by acceptance of this Agreement, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in any transaction with a Federal or State department or agency. It further certifies that prior to submitting its Bid that it did include this clause without modification in all lower tier transactions, solicitations, proposals, contracts and subcontracts. In the event that Professional or any lower tier participant was unable to certify to the statement, an explanation was attached to the Bid and was determined by the City to be satisfactory to the City. 25. Integration and Modification. This written Agreement along with all Contract Documents shall constitute the contract between the parties and supersedes or incorporates any prior written and oral agreements of the parties. In addition, Professional understands that no City official or employee, other than the Mayor and City Council acting as a body at a council meeting, has authority to enter into an Agreement or to modify the terms of the Agreement on behalf of the City. Any such Agreement or modification to this Agreement must be in writing and be executed by the parties hereto. 26. Authorized Representative. The undersigned representative of Professional, as an inducement to the City to execute this Agreement, represents that he/she is an authorized representative of Professional for the purposes of executing this Agreement and that he/she has full and complete authority to enter into this Agreement for the terms and conditions specified herein. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement of which shall be deemed an original on the date first written above. CITY OF ASPEN, COLORADO: PROFESSIONAL: ________________________________ ______________________________ [Signature] [Signature] DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 115 Agreement Professional Services Page 10 By: _____________________________ By: _____________________________ [Name] [Name] Title: ____________________________ Title: ____________________________ Date: ___________________ Date: ___________________ Approve as to Form: _____________________ City Attorney General Conditions and Special Conditions can be found on City of Aspen Website. https://www.cityofaspen.com/497/Purchasing DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 Growth Director Sean Maconachy 8/26/2022 | 9:23:53 AM MDT 116 Agreement Professional Services Page 11 EXHIBIT A PROFESSIONAL SERVICES AGREEMENT See attached SOW EXHIBIT B PROFESSIONAL SERVICES AGREEMENT Fee Schedule See attached SOW BID DocuSign Envelope ID: B2BE35CD-4E30-44BC-9AD3-0B991B3897E8 117 MEMORANDUM TO:Mayor and City Council FROM:Sara Ott, City Manager MEETING DATE: September 13, 2022 RE:Resolution 109, Series of 2022, Approving City Attorney Contract Amendment REQUEST OF COUNCIL: To consider the adoption of resolution 109, Series of 2022 to approve an amendment of the employment contract for the continued employment of the Aspen City Attorney. SUMMARY / BACKGROUND: Recently City Council concluded the performance review of incumbent City Attorney James R. True. Following the review, City Council and Mr. True agreed to a salary adjustment pursuant to the same methodology used by the Compensation Consultant to complete the 2022 city-wide process. The current contract requires an amendment to the contract for certain modifications, including increases in salary. Attached is a proposed contract amendment reflecting the change in salary, together with the original contract. No other terms of the contract are modified pursuant to this amendment. RECOMMENDED ACTION: The City Manager has no recommendation regarding Resolution 109, Series of 2022 118 RESOLUTION #109 (Series of 2022) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF ASPEN AND JAMES R. TRUE, CITY ATTORNEY OF THE CITY OF ASPEN AND AUTHORIZING THE MAYOR TO EXECUTE SAID CONTRACT AMENDMENT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, pursuant to Section 7.1 of the Home Rule Charter of the City of Aspen, the City Council shall appoint a city attorney. James R. True was appointed to this position as of February 21, 2012, following appointment as Special Counsel for the City of Aspen in December of 2007; WHEREAS, following his review by Council, the City Council and City Attorney agreed that it would be appropriate to amend the existing employment contract to reflect modifications in the City Attorney’s salary. A true and accurate copy of the proposed amendment 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 the Amendment to Employment Contract by and between James R. True and City of Aspen, and hereby authorizes the Mayor to execute such contract, a copy of which are annexed hereto and incorporated herein, on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 13 th day of September 2022. Torre, Mayor I, Nicole Henning, 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 on the 13th day of September 2022. Nicole Henning, City Clerk 119 AMENDMENT TO EMPLOYMENT CONTRACT THIS AMENDMENT made this __ day of September 2022, modifies the EMPLOYMENT CONTRACT for the City Attorney, dated April 27, 2021, (“Contract”) by and between the CITY OF ASPEN (hereinafter referred to as "City"), and JAMES R. TRUE (hereinafter referred to as "True"), as follows: W I T N E S S E T H: WHEREAS, Employee is currently employed by the City as the City Attorney; and, WHEREAS, the City Council has performed its most recent review of Employee as required pursuant to the Contract; and, WHEREAS, the City and Employee desire to amend the previously entered Employment Contract on terms mutually agreeable to the parties conditioned upon the adoption of this amendment pursuant to a Resolution approved by City Council at a Regular Meeting of City Council; NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties agree as follows: 1. Paragraph 3.A. of the Contract is hereby amended by the deletion of the paragraph in its entirety and the replacement of such paragraph with the following: 3. A. Salary. True shall receive a salary of $216,590.40, effective as of February 21, 2022. True shall receive retroactive pay for any difference in salary and benefits calculated from the effective date until paid. This retroactive pay shall be paid no later than September 30, 2022. This compensation shall be paid in the same manner as any other City employee as provided for in the City of Aspen Policy Manual, or its successor document, as that document may be modified from time to time. 2. All other terms and conditions of the Contract shall remain in full force and effect. EMPLOYEE: Signature:________________________________________________________Date:_______ James R. True, City Attorney CITY OF ASPEN: Signature:________________________________________________________Date: _______ Torre, Mayor 120 EMPLOYMENT CONTRACT ASPEN CITY ATTORNEY 2021 This contract is made and entered into as of this_day of 2021 between the City of Aspen("City")and James R. True("True"). RECITALS The City Council has offered continued employment to True in the capacity of City Attorney as that position is defined in the Colorado Revised Statutes and the Charter of the City of Aspen, and; True has accepted this offer of employment with all of the duties and obligations associated thereto, as those duties and obligations may be changed or amended by the City Council, from time to time. EMPLOYMENT NOW THEREFORE, the Parties hereto agree to be bound by the mutual covenants contained herein establishing their obligations concerning employment, remuneration, duties and performance. 1. Scope of Duties. True will serve as City Attorney and be responsible as chief legal counsel to the City of Aspen. True shall be responsible to defend the actions of the City Council, prosecute actions to enforce the law of the State of Colorado and the City of Aspen, as applicable, and advise other City staff so long as no conflict exists with his representation of the City Council. These duties may be amended and supplemented by the City Council at any time during the course of the initial term or any subsequent term of this contract. 2. Term. The term of this employment contract is for four years from the last anniversary date of February 21, 2021. Prior to February 21'of each year of this contract and for each year the contract is renewed, it is the intention of the parties to review True's performance in terms of successful completion of City Council directives, defense of the City of Aspen and performance of the attorney's office. The parties will also use such time to evaluate the terms and compensation of this contract and modify those by mutual consent. Any future adjustments to terms or compensation shall be reduced to writing and attached herein as an addendum to this Agreement and be fully executed by both parties. The term of this contract shall renew for successive one-year periods unless cancelled by either party as provided herein. 3. Compensation A. Salary. True shall receive a salary of $ 194,808.36 per year effective February 21, 2021. True shall receive retroactive pay for any difference in 1 27 April 121 salary and benefits calculated from the effective date until paid, as outlined in subparagraph C, below. This retroactive pay shall be paid no later than May 31, 2021. This compensation shall be paid in the same manner as any other City employee as provided for in the City of Aspen Policy Manual, or its successor document, as that document may be modified from time to time. B. Benefits. True will receive all benefits contained within the City of Aspen Policy Manual, or its successor document, consistent with other City employees. C. Additional One-Time Retroactive Pay. True shall receive retroactive pay for the period of February 21, 2020 to February 20, 2021 in the amount equal to a 3.8% increase based upon a salary of$182,208 per year. True shall receive any benefit based upon salary retroactively for this period. True shall receive retroactive pay for the period of February 21, 2021 to the date paid in the amount equal to a 3.0% increase based upon a salary of$ 189,131.90 per year. True shall receive any benefit based upon salary retroactively for this period. This Additional One-Time Retroactive Pay shall be paid no later than May 31,2021. This compensation shall be paid in the same manner as any other City employee as provided for in the City of Aspen Policy Manual, or its successor document,as that document may be modified from time to time. D. Bonus Pay. True shall receive a one-time bonus pay in the amount of 1,500.00 to be paid no later than May 31, 2021. This payment is considered taxable income and is subject to such taxation. This compensation shall be paid in the same manner as any other City employee as provided for in the City of Aspen Policy Manual, or its successor document, as that document may be modified from time to time. 4. Termination. Notwithstanding the provisions of Paragraph 2 of this Agreement,this Agreement may be terminated by: A. Mutual agreement of the parties. B. Disability of the Employee pursuant to Paragraph 5. C. Discharge for good and just cause relating to the Employee's duties. The term "good and just cause" shall include, but not be limited to, a 2 122 material breach of the terms and conditions of this Agreement, unsatisfactory performance of duties such as malfeasance, misfeasance, or nonfeasance, and other good and just cause. However, the City Council shall not arbitrarily and capriciously dismiss the Employee. In the event the City Council believes that it has good and just cause for dismissal as defined herein, it shall give the Employee an enumeration of such cause in writing; a summary of the evidence, including the names of witnesses and copies of any documents supporting the alleged cause; and the opportunity for a hearing with respect to such good and just cause before the City Council or, at the City Council's option, before an arbitrator pursuant to the provisions of the paragraph below captioned Alternate Dispute Resolution. The hearing may be in open session at Employee's option. City shall pay the discharge proceedings in full with the exception of if the Employee chooses, he may, at his sole expense, be accompanied by legal counsel at any hearing, and shall pay his own attorney's fees. D. Unilateral termination without cause by the City or a request from the City Council for Employee's resignation of employment as City Attorney. In the event that Employee is terminated pursuant to this Section 4. D., Employee shall be entitled to severance in an amount equivalent of ten (10) months' salary at his then base salary pay rate. The severance payment, along with any cash out of accrued but unused leave pursuant to the City's policy manual, shall be made within twenty (20) days of termination. E. Death of the Employee. F. Unilateral termination by the Employee by providing thirty (30) days' written notice. 5.Disability. Should the Employee be unable to perform any or all of his duties by reason of illness, accident, or other causes beyond his control and such disability exists for a period of more than one month, the City may, in the discretion of the City Council, make a proportionate deduction from the Employee's salary, and if such disability continues for more than three months or is permanent or of such nature as, in the judgment of the City Council and subject to applicable state and federal laws including, without limitation,the Americans with Disabilities Act,the Family Medical Leave Act, and the Colorado Family Care Act, to make the performance of the essential functions of his position with reasonable accommodation impossible,the City may, in the discretion of the City Council,terminate this Agreement. 6. Assignability. This contract is not assignable by either party under any condition. 7. Annual Appropriations. The financial obligations of the City of Aspen contained in this contact are subject to annual appropriation of funds by the City Council acting in its governmental capacity. 3 123 8. Agreement Made in Colorado. The parties agree that this agreement was made in accordance with the laws of the State of Colorado and shall be so construed. Venue is agreed to be exclusively in the Pitkin City District Court for the State of Colorado. 9. Attorney's Fees. In the event legal action is necessary to enforce or interpret any of the provisions of this contract, the substantially prevailing party shall be entitled to its costs and reasonable attorney's fees. City of Aspen City Attorney By: Torre James R. True Mayor 4 124 MEMORANDUM TO:Mayor and City Council FROM:Nicole Henning MEMO DATE:September 7, 2022 MEETING DATE:September 13, 2022 RE:Board Appointments By adopting the Consent Calendar, Council is making the following appointments: Commercial Core & Lodging Commission – Jeb Ball, Regular Member Matthew Libanoff, Alternate Gregory Lucier, Alternate Kids First Advisory Board – Katherine Coleman, Alternate Local Licensing Authority – Bill Murphy, Regular Member Next Generation Advisory Board – Michaela Carpenter, Regular Member Zachary Kops, Regular Member Wheeler Opera House Advisory Board – Chip Fuller, Regular Member 125 1 REGULAR MEETING ASPEN CITY COUNCIL AUGUST 23, 2022 At 5:00 p.m. Mayor Torre called the regular meeting to order with Councilors Doyle, Hauenstein, Richards, and Mesirow present. Mayor Torre introduced the Aspen International Mountain Foundation, who is hosting a global event here in Aspen in a few weeks and said they are here to give an update. John Starr and Karinjo Devore presented. Ms. Devore said thank you to the city who is a cohost of their upcoming event on September 26th-29th. She spoke about all the support the city is giving them. She said they will have delegates from all over the world and Governor Polis will open the program Tuesday morning along with Mayor Torre. The most exciting thing is working with staff to put together a side event focusing on regional municipalities and sustainable work that is being done. We will all learn from each other. Mr. Starr agreed and said thank you to the City of Aspen. He is excited about the co-event and spoke about the side event. He mentioned their website: aimf.org, which will direct them to Mountains Matter, which will give them information on the event. We would love to have as many locals as we can come and enjoy this. Mayor Torre congratulated them and said it’s been a lot of work. CITIZEN COMMENTS: Mike Triplett – Mr. Triplett said he said he listened to the traffic report last night about the West end. He said it was clear that there was an 85-point analysis that was concluded by the study, and several key facts were excluded. We’ve been patient about waiting for this consultation to conclude and it showed a problem. It’s now up to you guys to provide some relief. It’s puzzling that people are so resistant to try something. The stop signs put in placed helped. He feels like these vehicles are residing down valley but are not people who live in town. He said it’s the people who live in Aspen that you are supposed to be helping. Ms. Ott clarified that what she heard from council was that they don’t want to introduce a physical infrastructure in the west end at this point. Jeb Ball – Mr. Ball, Chairman of the Commercial Core & Lodging Commission, handed out a presentation to the council members regarding the living lab. He gave CCLC feedback regarding the lab and input that should be considered. Each CCLC member conducted face to face interviews with businesses in the core. He discussed the findings of their research and said there were a lot of emotionally charged responses to the questions, and he does acknowledge that. The feedback was negative overall. CCLC wants to be a part of reimagining parking in the core. Mayor Torre thanked him and said this is a lot more work than CCLC normally does, and we appreciate your presentation. COUNCIL COMMENTS: Councilor Doyle saidwe are all aware of the drought conditions. He spoke about Mexico and Chile. He spoke about water levels and the use of more energy than ever before. These droughts are getting more commonplace and hotter. Councilor Mesirow said thank you to the CCLCmembers who are here and to everyone on the board. This is a ton of work and said thank you for getting involved at the grassroots level. The feedback is pretty clear. He likes partnering together to reimagine the downtown core. We are better working on this together. 126 2 REGULAR MEETING ASPEN CITY COUNCIL AUGUST 23, 2022 Councilor Richards spoke about the potential for wildfire. Mayor Torre spoke about the living lab and said they will be having a discussion on that later in the agenda. He announced the Mayors Cup on September 16th and said it’s not a shotgun start, and they are offering tee times throughout the day. The Mayors Cup will be benefitting the Hope Center and Aspen Strong this year. He spoke about mental health and said it’s ok to get help. AGENDA AMENDMENTS: None. CITY MANAGER COMMENTS: Ms. Ott said she spent time with CDOT this afternoon regarding the entrance to Aspen. She gave an update on the FBO selection process for the Airport Advisory Committee. There was a fairly in depth review for the operations at the airport including nuances at our airport that are like no other. What are some limiting factors with plane type and timing. She will forward the slides on to council from the FAA. She also reminded them that they have agreed to special meetings on August 29 th and the 6th of September. Councilor Richards suggested starting at 4:00 p.m. on the 6 th. Ms. Ott mentioned that she noticed tonight that the Aspen International Mountain Foundation event is on Tuesday, and we had scheduled the lumberyard review for that night. We could do the work session earlier in the day or a different evening, but she’s suggesting earlier in the same day. BOARD REPORTS: Councilor Richards said they spent most of APCHA in executive session. Councilor Mesirow spoke about the Snowmass model, and said they reviewed the last years workplan and looked over the draft of the 22/23 workplan. We now have 600 followers on Facebook, so we are making progress on outreach. Councilor Richards said she has upcoming Club 20 debates on Saturday the 10 th. CONSENT CALENDAR: Mayor Torre pulled Resolution #098, Series of 2022 – Civil and Electrical Design: Paepcke Park to City Market Replacement – Andy Rossello and Ryan Lobach Mayor Torre said he wants public awareness of this project and what the implications are. Mr. Rossello said this is the second phase of this project and over the next 15 years, we are replacing the entirety of the electric in the city. He mentioned disturbances and construction in the alleys, so please be prepared. Councilor Hauensteinmotioned to approve; Councilor Richards seconded. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. FIRST READING OF ORDINANCES Ordinance #10, Series of 2022 – Willoughby Ponds Subdivision: Water Service Agreement – Tyler Christoff, Utilities Director along with John Bucksbaum and Jim Curtis 127 3 REGULAR MEETING ASPEN CITY COUNCIL AUGUST 23, 2022 Mr. Christoff said the applicants have recently asked for a more formal agreement with the city as they intend to develop an additional lot in this subdivision. He read the conditions and said staff recommends approval of this ordinance. Councilor Richards asked about stumbling blocks, and Mr. Christoff there have been none; negotiations were lengthy, but reasonable. Councilor Hauenstein motioned to read; Councilor Richards seconded. Ms. Henning read the ordinance. Councilor Richards asked if the ponds are naturally occurring. Mr. Curtis said he has been involved with this property since 1983. The ponds are natural and fed by water from Hunter Creek, and not man made in any fashion. Councilor Richards motioned to approve; Councilor Mesirow seconded. Councilor Hauenstein said it is outside the city and this will be put on consciousness of the developers. Mr. Curtis said they will comply will city’s landscape codes. ACTION ITEMS: Resolution #101, Series of 2022 - 0.5% Open Space Sales Tax Renewal – Austin Weiss and Matt Kuhn Mr. Weiss said this resolution reflects ballot language for an extension of the 0.5% Open Space Sales Tax. Assistant City Attorney, Kate Johnson confirmed this is a resolution that would place it on the ballot in November. Councilor Hauenstein moved to approve Resolution #101, Series of 2022; Councilor Doyle seconded. Mayor Torre said thanks to you and staff. You guys have done an amazing job at maintaining and your crews are out there working hard, and it shows. Mr. Weiss said they couldn’t be prouder of the staff. Mayor Torre said it’s a community amenity. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. Resolution #102, Series of 2022 – Aspen Public House Lease Amendment – Lisa Rigsby Peterson and Diane Foster along with applicants, Bill Johnson, and Raphael Derly. Ms. Foster introduced the item and said the idea is to give Raphael 51% of the ownership of the Aspen Public House. She reviewed the pros and cons listed in the memo. Councilor Mesirow said on the record that he is Raphael’s neighbor but feels like he can be objective. He asked why now and how would bringing Raphael in change the staffing issue. Mr. Johnson said he’s getting married in October and he has moved down to Carbondale, so this is about life changes for him and would be a wise move for himself. In no way does he want to completely 128 4 REGULAR MEETING ASPEN CITY COUNCIL AUGUST 23, 2022 step away. At this point, Raphael has a tremendous amount of experience and it’s better for the community than what he can do on his own. How he hires is by word of mouth. He could double the capacity with Raphael’s help for hiring for lunch. He feels the menu might expand the affordability. Councilor Mesirow confirmed that this is a working opportunity together and not an exit. Mr. Johnson confirmed that is the case. Mr. Johnson said he has no ambitions to pursue another restaurant project, but he just wants to share the opportunity with someone else. Councilor Richards said she’s wondering if the menu will still be affordable and asked about the local’s burger. Mr. Johnson said there isn’t much disparity with what they are currently doing. He took the burger off the menu a couple of years ago, but there are still locals who come in and order it. The shot and beer deal will still stay put. They want to do tapas because they are easier to execute in a high- volume kitchen. Councilor Richards asked staff how long the lease would go for. Mayor Torre said the term goes until next year and then an option of another five years. Councilor Hauensteinasked if the five-year option is an auto extension. Ms. Ott thinks it’s a tenant option and not mutual. City Attorney, James R. True, said that is correct. Councilor Hauenstein said this gives him pause because we are transferring 50%of a whole new business and we should have an RFP. If we get into something that doesn’t seem to be working, we are stuck with another ten years. Mr. Johnson is fully committed to staying and completing his business, but he just wants to split the workload. Councilor Hauensteinasked if they would be open to a review in April 2023. Councilor Richards asked what recourse the city would have if they don’t like the situation they’ve gotten into. Mr. Johnson said the assurance is the lease that he signed. He read a section of the lease regarding affordability. Ms. Ott said this was a challenging part of the lease because there used to be a guaranteed menu requirement. There is a check in process with the director of the Wheeler and check ins with the City Manager to ensure this is going in the right direction. It’s a negotiable item for the council. She would suggest checking with the applicant to see if he’s willing to negotiate with council instead of negotiating here at the table. Councilor Mesirow said he’s concerned about the costs going up. With having the government as a partner, it may put unwanted restrictions on what you are proposing. Councilor Doyle said he struggles with 51% percent putting Raphael in control, and he feels like other restaurateurs will complain to him if they move forward with this. Councilor Mesirow said he is concerned about keeping a place available to the workers of this town and not the tourists. Councilor Richards said she wants to table it and give it more time and thought. Councilor Mesirow wondered what it would look like if they gave this a path for other applicants as well. 129 5 REGULAR MEETING ASPEN CITY COUNCIL AUGUST 23, 2022 Ms. Ott said city council would have to initiate the breaking of the lease, and we are not near that at all. Mr. True said if the tenant is in compliance with the lease, renewing is with the tenant. The tenant is in violation at this point, but he can’t predict what the status will be next April. He feels council can fairly evaluate this transfer of ownership and can add conditions which make them feel more comfortable. Councilor Mesirow said it needs more time. His hesitancy around it is around it is long-term affordability. Councilor Richards said they would all feel better if they were doing a 25% ownership transfer instead. Mr. Derly said they started talking this winter and have known each other for years. He said he has always been in love with the space and after they started talking, they started seeing more potential for the space working together. He and Bill are both passionate about this and they would like to have a vibrant locals spot. We thought teaming up together would bring something interesting to the city. We want to work on creating more volume and being back open seven days a week. We want to push wine sales. There is huge potential for this space and it’s a work in progress. We understand the beauty of the place. Mayor Torre said he appreciates the description of sustainability they have put into this. His other consideration was about affordability and appropriateness for the Wheeler Opera House. He has a slight concern about the remodel because it costs money just to get going and he doesn’t find it consistent with the building. He goes over there quite a bit. He said he loves the work Raphael did at the Creperie and is one of the most charming places even on a national level and he has tremendous respect for what he did. He has concern about the price points. This is a place for all of Aspen. He spoke about when the space changed from Bentley’s to Justice Snow, so he sits here now, having been burned once. He has some fear. He’s concerned about the 51% as well because they typically go out for RFPs on this space. He said more work needs to be done and there are more assurances that need to be made before moving forward. Ms. Ott asked the applicant if they are ok continuing this to the September 13th regular meeting. Mr. Johnson said this is critical to his future, and he is happy to wait for the next meeting. Regarding the split, we can step the percentage back as well. Ms. Ott said we should negotiate off the table. Councilor Hauensteinmotioned to continue to September 13 th; Councilor Richards seconded. Mr. True suggested that we could discuss this in the executive session, which wealready have scheduled tonight. We may request that this item be added. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. Galena Cooper Living Lab – Post Lab Temporary Conditions Ms. Ott said she is looking for direction from council so they can prepare documents for contractors of what their expectations are. Mayor Torre recapped the memo. He summarized council’s consensus regarding the three-way stop, parallel parking on the right (west side), angle parking on the left (east side), and maintain the one-way on Hyman. 130 6 REGULAR MEETING ASPEN CITY COUNCIL AUGUST 23, 2022 Mr. True introduced the executive session. Councilor Doyle motioned to move into executive session; Councilor Mesirow seconded. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. _____________________________ Nicole Henning, City Clerk 131 MEMORANDUM TO: Mayor and City Council FROM: Tyler Christoff, Utilities Director Kate Johnson, Assistant City Attorney THROUGH: Scott Miller, Public Works Director, Jim True, City Attorney MEETING DATE: September 13th 2022 RE: Ordinance #10 - Willoughby Ponds Subdivision: Water Service Agreement REQUEST OF COUNCIL: Staff recommends Council approve Ordinance #10, Series of 2022, approving and authorizing the Mayor and City Clerk to execute a Water Service Agreement with Willoughby Ponds Trust (“Trust”), owner of the six lots that make up the Willoughby Ponds Estates Subdivision (“Subdivision”). This is an opportunity to formalize the terms of existing treated water service that Aspen has provided for decades to two of the six lots in this Subdivision, and to provide terms for City water service to currently unserved lots consistent with their County-approved development plans. BACKGROUND: Aspen’s home rule Charter, adopted in 1970, requires an ordinance in order to extend water service beyond City boundaries. Until now, Council has never been asked to authorize the extension of service to the Subdivision, even though two of lots within the Subdivision have received City water services since the late 1990’s. Representatives of the Subdivision have applied for extraterritorial water service. The subject lots are located outside of the City but directly abuts City boundaries. The location of the Subdivision is highlighted below in green: 132 Treated City water service has been provided to a single-family residence on Lot 3 since approximately 1993 and to a barn on Lot 6 since approximately 1997. Lots 1, 2, 4 and 5 are vacant. The Trust seeks to obtain additional water service from the City for the Subdivision, and to provide an option for future water service for residences on Lots 1, 2, 4, and 5, not to exceed a total grant of 15.13 ECUs. The status of City water service within the Subdivision currently is as follows: Lot 3 is allocated 5.69 ECUs to serve the existing residence on that lot, and Lot 6 is allocated 4.46 ECUs to serve the existing barn and planned single family residence on that lot. The remaining 4.98 ECUs may be allocated among the four vacant lots or Lots 3 and 6 pursuant to the terms of the water service agreement as determined by the Trust. The Trust acknowledges that if no ECUs are allocated to a vacant lot, that lot may not be entitled to receive City water service and may only apply for an individual or shared wells if certain conditions exist. DISCUSSION: The City applies guidance, conservation programing, and regulation to uniformly manage Aspen’s water resources. This community-based management practice is considered while reviewing impacts of new service applications adjacent to Aspen’s service boundary. 133 City staff have determined that current infrastructure, augmented by the applicant can provide water service to the property. The water service application requires the property to agree to annexation into the City. Annexation of this parcel creates inconsistencies from a planning perspective as the current Pitkin County approvals do not match Aspen municipal code provisions for surrounding neighborhoods. Owner, at his own cost will construct the water main and associated facilities in accordance with the plans and specifications and the construction schedule outlined in Exhibit A of the attached water services agreement. These proposed improvements include two phases of approximately 1600 feet of 8” ductile iron pipe, removal and installation of a check valve and associated vault infrastructure, a fire hydrants and associated appurtenances. No construction shall occur between November 1 and April 1 without written approval of the City Water Department. Additionally, the owner agrees to construct, install, and test, at its expense, the water system improvements in accordance with City design, construction, installation, and testing rules, regulations, policies, and protocols. The owner agrees to follow the City's Water Policy Resolution (Resolution No. 5, (Series of 1993), as amended), and water conservation ordinances including the City’s Water Efficient Landscaping Standards. The proposed water service agreement (attached hereto) provides for sufficient water service to each of the lots in the Subdivision to serve full development in accordance with county approvals, while including recognition that City treated water service has been provided for many decades, that certain as-built easements must be finalized and recorded, and that the lot owners have historically used and may continue to use private untreated water supplies for irrigation and amenities. Annexation provisions are included, as required as part of the City’s water extension policy, discussed more fully below. Although there is no request by these lot owners to be annexed; there are no plans or discussions in the City to initiate annexation; the agreement provides their consent to annexation if and when the City requests it. The Ordinance also authorizes execution of additional documents relating to the Water Service Agreement, which could include relocated easements, for example, without further council action. FINANCIAL/BUDGET IMPACTS:The proposed water service agreement is structured to be cost neutral for Aspen’s current public water system and its customers. The lot owners will, at their cost, obtain and record the needed easements for water system infrastructure. The tap fees, payment in lieu of water rights, and well system development fees are required to be paid under the proposed Water Service Agreement. Additionally, the owner will design and construct the additional, upsized and/or upgraded water transmission and distribution mains, lines, associated facilities and internal distribution lines for the Project in accordance with and subject to the City's design, materials, and construction specifications and approval, at Owner's own expense. 134 The City has proposed, and the applicant has agreed to pay all applicable impact and mitigation fees, including affordable housing mitigation, as if these properties were situated within the City. The affordable housing mitigation fee will be calculated pursuant to the methodology used to calculate affordable housing for a new subdivision. Thus, the affordable housing fee is calculated is provided in an amount equal to at least 30% of the additional free market residential net livable are and based upon Category 2 FTE rates. For purposes of clarity, staff recommends that the mitigation calculation be static and based upon the Land Use Code in existence on January 1, 2022. Pursuant to the proposed water service agreement, the City may revisit the mitigation and impact fee calculations after the initial term of the proposed agreement, which is 15 years, and every 5 years thereafter. Credit will be given for any affordable housing mitigation paid to Pitkin County in relation to land use approvals and building permits. Additionally, staff requests that Council allow the Owner, or its successors to pay fee-in-lieu for affordable housing mitigation without additional City Council approval as is required pursuant to section 26.470.110 of the City Land Use Code. Exhibit D demonstrates the applicable impact and mitigation fees, and calculation of affordable housing mitigation fees. ENVIRONMENTAL IMPACTS: Continued service to existing uses at the Subdivision will not generate new environmental impacts. The Water Service Agreement also includes a provision that development of these lots will comply with the City’s Urban Runoff Management Plan and Construction Mitigation regulations whether or not annexation occurs, which serves to minimize the impacts to the local environment. CONSISTENCY WITH POLICY RESOLUTIONS:Resolution No. 5 (Series of 1993) and subsequently amended by Resolution No. 49 (Series of 1993) provides guidance in providing water service outside of the City boundaries and identifies implementation steps. Staff has determined that the service to be provided under the Water Service Agreement meets the requirements of Resolution No. 5. Locating existing infrastructure and finalizing easements will indirectly improve the water delivery capacity of the system and not adversely impact services to existing water system users. The City has sufficient water and water treatment capacity to provide the new or expanded service without jeopardizing water reserves and the treatment facilities. The water service to be provided will not result in an operational financial deficit nor will the required capital costs, if any, be borne by the City. A dedication of water rights is not provided for; instead, the lot owners will make a payment in lieu of water rights for additional service. This subdivision has historically been irrigated with raw water supplies owned by the lot owners, despite the long- standing delivery of treated water service by the City. Staff has determined that in this unique case, it is appropriate to permit continuation of the lot owners’ current and historical practice of using their own untreated water supplies for irrigation and other amenities, consistent with Colorado water law. The Water Service Agreement limits treated water irrigation to 3,000 square feet per lot and requires a payment in lieu of water rights for expanded service. 135 Resolution No. 5 also requires consistency with the Aspen Area Community Plan and an agreement to annex the served property if requested by the City. The annexation provisions in the proposed water service agreement, addressing the extent to which the county vested rights will be recognized in the event of annexation during the vested rights period, were developed jointly by the Community Development, Engineering, and Building Departments, the City Attorney’s office, and representatives of the lot owners. RECOMMENDED ACTION:Staff recommends Council approve Ordinance #10, Series of 2022, approving and authorizing the Mayor and City Clerk to execute a Water Service Agreement with the owners of the six lots that make up the Willoughby Ponds Subdivision. ALTERNATIVES: The Council may decline to authorize a Water Service Agreement. This will result in uncertainty as to current City water service obligations to the Willoughby Ponds Subdivision, and the current inability of the Willoughby Ponds Subdivision lot owners to develop their vested rights, inasmuch as their existing county approvals require a City Water Service Agreement. PROPOSED MOTION: “I move to approve Ordinance No.10, Series of 2022, approving the Water Service Agreement with owners of lots within the Willoughby Ponds Subdivision, in substantially the form attached as Exhibit A, subject to final approval by the City Attorney.” CITY MANAGER COMMENTS: ______________________________________________________________________ ______________________________________________________ ______________________________________________________________________ _______ ATTACHMENTS: -Ordinance No. 10, Series of 2022 -Proposed Water Service Agreement -Exhibit A - C - Exhibits to Water Service Agreement -Exhibit D – Fee Calculations 136 ORDINANCE NO. 10 Series of 2022 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A WATER SERVICE AGREEMENT WITH THE OWNER OF WILLOUGHBY PONDS SUBDIVISION FOR PROVISION OF TREATED WATER SERVICE OUTSIDE THE CITY LIMITS. WHEREAS, Willoughby Ponds Estate Subdivision (“the Subdivision”) consists of six lots, known as Lots 1, 2, 3, 4, 5, and 6, comprising 15.791 acres, situated in Pitkin County, Colorado, as more particularly described in the most recent plat of the subdivision, recorded with the Pitkin County Recorder on December 16, 2021, at Reception No. 683528. All six lots are owned by Willoughby Ponds Trust (“the Trust”). WHEREAS, the Trustsubmitted a requestfor Water Service to the City Water Department, requesting that extraterritorial water service from the City to serve six lots in the Subdivision. WHEREAS, treated water service has been provided to a single-family residence on Lot 3 since approximately 1993 and Lot 6 since approximately 1997. Lots 1, 2, 4, and 5 are vacant. WHEREAS, the Trust seeks to obtain additional municipal water service from the City for the Subdivision, including expanding the existing water service for Lot 6 for purposes of serving a single-family residence, and to provide options for future water service for residences on Lots 1, 2, 4, and 5 if developed during the terms of the Water Service Agreement, for a total of 15.13 ECUs for all uses within the Subdivision. WHEREAS, the property to be served is located in Pitkin County, and not within the City limits of the City of Aspen; and WHEREAS, Section 25.12.020 of the Aspen Municipal Code provides that any extension of City water service outside the Corporate limits of the City of Aspen shall be made pursuant to an agreement with the City and in accordance with the City of Aspen water main extension policy 137 2 and, further, that the City may grant water service only upon a determination that no conflict exists between the best interests of the City and the prospective water use, and that the City may impose such contract, water rights dedication and bond requirements as it deems necessary to safeguard the best interests of the City; and WHEREAS, City staff have determined that the proposed Water Service Agreement will comply with the requirements of the Municipal Code of the City of Aspen, Colorado (the "Code"), and the expanded service will comply with the requirements of the City’s Water Service Extension Policy, which permits extension of City water service extraterritorially only upon demonstration that such extension will meet the policy goals and requirements of Resolution No. 5, Series of 1993, as amended (codified at Section 25.12.020(b) of the Aspen Municipal Code, as the same may be further amended from time to time, and referred to here as “Resolution No. 5”); and WHEREAS, City Council must make a determination that the proposed water service extension complies with the above policies and is in the best interests of the City of Aspen; and WHEREAS, the City Council has had an opportunity to review with City staff the proposed terms and conditions under which the City is willing to extend water service to the Subdivision. , NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT Section 1.The City Council of the City of Aspen hereby determines that the proposed provision of City water service to serve six lots in the Willoughby Ponds Estates Subdivision, comprising approximately 15.791 acres, situated in Pitkin County, Colorado outside the City limits of the City of Aspen as set forth in the Water Service Agreement, is in the best interest of the City, and complies with requirements of the Municipal Code of the City of Aspen, Colorado (the "Code"), and with the requirements of the City’s Water Service Extension Policy and Resolution 138 3 No. 5, series of 1993, and the City Council approves the Water Service Agreement in substantially the form attached hereto as Exhibit A and incorporated herein by reference. All City officials and employees are hereby directed to take such actions as are necessary and appropriate to fulfill the obligations of the City pursuant to the Water Service Agreement. The Mayor, City Manager, City Clerk and the Water Director are hereby authorized and directed to execute the Water Service Agreement and any related documents necessary or desirable to effectuate the transactions provided for in the Water Service Agreement, provided that neither the Water Service Agreement nor any other documents are authorized for execution until the City Attorney has approved the form thereof. Section 2.This ordinance shall not have any effect on existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of ordinances repealed or amended as herein provided, and the same shall be construed and concluded under such prior ordinances. Section 3.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 4.A public hearing on the ordinance shall beheld on the 13th day of September 2022, in the City Council Chambers, Aspen City Hall, Aspen, Colorado. 139 4 INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen on the 23rd day of August 2022. ___________________________ Mayor Attest: ___________________________ City Clerk FINALLY ADOPTED, PASSED AND APPROVED THIS _______ DAY OF _______________, 2022. ___________________________ Mayor Attest: ___________________________ City Clerk 140 CITY OF ASPEN WATER SERVICE AGREEMENT (Development Outside City Limits) This Water Service Agreement (the “Agreement”) is entered into this ______day of ______________,_____, (“the effective date”) in Aspen, Colorado, between THE CITY OF ASPEN, a Colorado municipal corporation and home rule city whose address is 427 Rio Grande Place, Aspen, Colorado 81611 (hereafter the "City"), and Willoughby Ponds Trust, a trust organized under the laws of Colorado whose address is 71 S. Wacker Drive, Suite 2130, Chicago, IL 60606 (“Owner”). RECITALS A. The City owns and operates the City of Aspen water system in accordance with the laws of the State of Colorado, and in accordance with the charter, ordinances, rules, regulations, policies and resolutions of the City of Aspen, and this Agreement is entered into in conformity with, and subject to, such charter, and all such ordinances, rules, regulations, policies and resolutions. B. Owner is the owner of all six lots in the Willoughby Ponds Estates Subdivision, comprising approximately 15.791 acres, situated in Pitkin County, Colorado, as more particularly described in the most recent plat of the subdivision, recorded with the Pitkin County Recorder on December 16, 2021, at Reception No. 683528 and referred to collectively in this Agreement as the "Subject Property" or individually as lot(s) or by lot number. The Subject Property and current lot configurations are depicted on Exhibit A attached hereto. C. Treated City water service has been provided to a single-family residence on Lot 3 since approximately 1993 and to a barn on Lot 6 since approximately 1997. Lots 1, 2, 4 and 5 are vacant. D. Owner seeks to obtain additional municipal water service from the City for the Subject Property, seeking to expand the existing service for Lot 6 to include a single family residence, and to provide an option for future municipal service for residences on Lots 1, 2, 4 and 5 if developed during the term of this Agreement, for a total of 15.13 ECUs for all uses within the Subject Property, including the existing uses on Lots 3 and 6. E. The Subject Property is located outside the corporate limits of the City. F. Additional municipal water service provided to the Subject Property pursuant to this Agreement will require Owner to provide easements to the City, to record covenants running with the Subject Property, and to design and construct certain water lines and water system infrastructure, all as provided in this Agreement. 141 2 G. The Municipal Code of the City of Aspen, Colorado (the "Code"), §25.12.020(b), requires that the extension of water service outside the boundaries of the City shall be made only pursuant to a written agreement with the City, that the City shall not be obligated to extend such service, that such service will be provided only upon a determination that it is in the best interests of the City, and that the City may impose such requirements by agreement as it deems necessary to protect its best interests. H. The City requires a loop system or a cross-tie system such that when water main extensions are made, such extensions shall be made in a manner that will allow cross-connection with another of the City's treated water mains to create a looped system. I. The City's Water Service Extension Policy permits water service extension only upon demonstration that such extension will meet the policy goals and requirements of Resolution No. 5 (Series of 1993) as amended [codified at Section 25.12.020(b) of the Code, as the same may be further amended from time to time], including the requirement that the City must recover its costs associated with such extraterritorial service. J. The City has determined that this Agreement and all covenants herein are necessary to comply with the Code and the City's water policies, and will allow the City to recover its costs of providing such extraterritorial service. K. The City is not hereby representing that it is a regulated public utility, or holding itself out to the public in general as capable of or intending to provide water service extraterritorially. L. The Code provides for the rating of new or expanded water service based on potential water demand as expressed in equivalent capacity units (hereafter "ECU"). M. The City desires to encourage the use of raw water supplies for certain outdoor irrigation where practical and feasible to do so while still protecting decreed instream flows, so as to reduce the dependence on treated water for this purpose and to minimize the costs of providing treated water service to the Subject Property. N. . The City is willing to provide water service to the Subject Property on the terms and conditions of this Agreement. THEREFORE, in consideration of the premises and the mutual promises and covenants contained herein, the City and Owner agree as follows: AGREEMENT 1. Water Service to Subject Property. 1.1 The City hereby agrees to provide treated water service to the Subject Property 142 3 under the terms of this Agreement in such quantities and to the extent herein provided so as to serve the structures and uses authorized by Pitkin County for the lots within the Subject Property, and subject to the additional terms and conditions as set forth in this Agreement. 1.2 Owner understands that the City will be the sole provider of treated water to the Subject Property, provided however, that except as provided herein with respect to Lot 3, the City shall not be required to supply water to serve outdoor irrigation uses, and further provided, that the maximum annual volume of treated water the City shall be required to provide to the Project and the Subject Property pursuant to this Agreement shall not exceed 5.35 acre-feet. 1.3 City water service will be available to serve 15.13 ECUs allocated among the six lots included in the Subject Property. Lot 3 is allocated 5.69 ECUs to serve the existing residence on that lot, and Lot 6 is allocated 4.46 ECUs to serve the existing barn and planned single family residence on that lot. The remaining 4.98 ECUs may be allocated among the lots within the Subject Property as determined by Owner at any time prior to application for water service to a particular lot. Owner may also allocate any unallocated ECUs to Lot 3 and 6 at Owner's discretion and subject to the terms of this Agreement. Owner acknowledges that if no ECUs are allocated to a particular lot, that lot will not be entitled to receive City water service, and will also not be entitled to receive water service from another source, such as a well, except pursuant to paragraph 2 herein. 1.4 Any ECUs that have not been allocated as of the Termination Date (defined in paragraph 2 below) will be deemed relinquished as of the Termination Date. Any ECUs that are allocated to existing structures will not be relinquished or affected as of the Termination Date, and any ECUs allocated and relied upon for purposes of a building permit that has been submitted as of the Termination Date will not be relinquished as of the Termination Date unless the building permit is denied, withdrawn, or otherwise not approved. 1.5 Only those structures and uses approved for each lot within the Subject Property may be served under this Agreement. 1.6 The City intends to allow the existing single-family residence on Lot 3 to continue to be served by its current ECU allocation (5.69 ECUs), and the Owner may allocate some of the unallocated ECUs to Lot 3 at Owner's discretion. The Owner of Lot 3 shall be exempt from the provisions of this Agreement unless or until: (1) the single-family residence on Lot 3 is to be Substantially Remodeled or Rebuilt as those terms are defined by the City of Aspen Municipal Code, Title 25, Section 25.12.070, as it may be amended from time to time; or (2) the then owner of Lot 3 constructs, builds or erects any additional structures apart from the existing single-family residence that require water service. 143 4 The occurrence described in either paragraph 1 or 2 above shall be referred to as a “Lot 3 exemption termination event”. Lot 3’s exemption status is not affected if the existing single-family residence on Lot 3 is demolished or destroyed by an act of nature or through any manner not purposefully or negligently accomplished by the owner, so long as any repairs or reconstruction do not utilize more than the existing ECUs allocated to Lot 3 at the time the single family residence on Lot 3 is demolished or destroyed. Notwithstanding the exemption described herein, Lot 3 shall be subject to the provisions of paragraphs 1.4 and 1.5. 1.7 Owner intends to maintain the existing barn on Lot 6 but to relocate it within Lot 6, and to construct a new single-family residence on Lot 6 in accordance with land use and building permit approvals issued by Pitkin County (“the Lot 6 residence project”) The new residence and the barn on Lot 6 will be served by a single water tap which will provide water service currently estimated at 4.46 ECUs for both the residence and the barn. The owner may allocate some of the unallocated ECUs to serve the single-family residence and barn in accordance with the Lot 6 residence project. Lot 6 shall be exempt from building the “Shady Lane Line” in compliance with paragraph 3.4.3 herein unless or until: (1) the single-family residence as constructed pursuant to the Lot 6 residence project plans or barn is to be Substantially Remodeled or Rebuilt as those terms are defined by the City of Aspen Municipal Code, Title 25, Section 25.12.070, as it may be amended from time to time; or (2) the then owner of Lot 6 constructs, builds, or erects any additional structures apart from the Lot 6 residence project and the existing barn that require water service. The occurrence described in either paragraphs 1 or 2 above shall be referred to as a “Lot 6 exemption termination event”. Lot 6’s exemption from building the Shady Lane Line shall not be affected if the as-built Lot 6 residence project or barn is demolished or destroyed by an act of nature or through any manner not purposefully or negligently accomplished by the owner, so long as any repairs or reconstruction do not utilize more than the existing ECUs allocated to Lot 6 at the time the Lot 6 residence project or barn is demolished or destroyed. Notwithstanding the exemption described herein, Lot 6 shall be subject to the provisions of this Agreement. 1.8 Payment of all fees provided for in this Agreement, including impact and 144 5 mitigation fees owed to the City in addition to tap fees and system development fees, will be made on a per lot basis. The owner of an individual lot must pay all impact and mitigation fees for any lot or lots upon which development is to occur upon submission of a building permit application for improvements resulting in new construction on such lot (including the Lot 6 residence project). 2. Term and Termination. 2.1 Termination by City; Termination Date. The City's obligation to provide treated water service to the maximum commitment of 15.13 ECUs to the Subject Property pursuant to paragraph 1 of this Agreement shall remain in full force and effect for fifteen (15) years from the effective date (“Initial Term”). Following the Initial Term, this Agreement will automatically renew for four (4) additional five (5) year terms (each an “Extension Term”) unless the City provides written Notice of Termination to Owner and all lot owners as shown in the records of the Pitkin County Assessor, at least one-hundred and eighty (180) days prior to the expiration of the Initial Term or the then applicable Extension Term. During each Extension Term, the Agreement shall continue in force upon the same covenants, terms, and conditions, subject to any impact or mitigation fee increases as may be imposed pursuant to paragraph 6. The Termination Date will be the earlier of (1) the calendar day after the last day of the notice period following a Notice of Termination as described above or (2) the expiration of the final Extension Period. If the Agreement is terminated by the City as provided in this paragraph, this Agreement shall nevertheless remain in full force and effect following the Termination Date with respect to any Lots which are then receiving City treated water service, or have constructed or are in the process of constructing improvements that will require City treated water service, or have applied for building permits as of the date of the Notice of Termination. As of the Termination Date, the City’s obligation to provide treated water service pursuant to this Agreement shall cease as to all lots to which City treated water service has not been provided, or on which there is no ongoing construction that will utilize treated City water service, or as to which no building permits have been applied for prior to the Notice of Termination provided that such building permit is approved. As of the Termination Date, all ECUs that are not in use or allocated to then-ongoing construction or building permits that have been applied for shall be deemed relinquished by Owner and the current owners of all lots affected by the Notice of Termination. 2.2 Termination by Owner. At any time during the Initial Term or any Extension Term of this Agreement, Owner may terminate this Agreement with respect to all vacant lots as provided in this paragraph. Owner may terminate this Agreement as to all vacant lots to which City treated water service has not been provided, or on which there is no ongoing construction that will utilize treated City water service, or as to which no building permits have been applied for prior to the date of the Notice of Termination, provided that such building permit is approved (“lots subject to termination”) by providing Notice of Termination, signed by Owner and any then owners of lots subject to termination to the City prior to the filing of an application for a building permit for any of said lots. This Agreement shall remain in full force and effect with 145 6 respect to any lots which are then receiving City treated water service, or have constructed or are in the process of constructing improvements that will require City treated water service, or have applied for building permits as of the date of the Notice of Termination. Upon exercise of Owner’s termination right hereunder, the parties agree to execute and record a statement of termination of this Agreement as to the lots subject to termination including a statement that the Agreement remains in effect as to any lot that is not a lot subject to termination. The following terms and conditions shall apply to any such termination: (1) the 50-foot easement for the Shady Lane Line, described in Exhibit C shall remain in place; (2) any of the 15.13 ECUs that have not been allocated to any lot that is not a lot subject to termination shall be deemed relinquished by Owner and owners of all lots subject to termination; (3) the lots no longer subject to this Water Service Agreement will not be subject to the requirements of this Agreement, provided, however, that the Loughran and Overflow Ditch water rights will continue to be operated as provided in paragraph 2.3.5; and (4) the Owner or owners of any vacant lots subject to the termination may apply for individual or shared wells to provide water service to said lot(s). The Termination Date pursuant to this paragraph shall be the date on which Notice of Termination is provided to the City. If this Agreement is terminated by Owner pursuant to this paragraph, the City makes no representation, guarantee, or assurance that it can or will provide treated water service to a lot or lots subject to the termination should the Owner or owners of such lot or lots seek treated water service from the City in the future. 3. Easements, Covenants, Restrictions, and Construction by Owner. 3.1 Easements, Covenants and Restrictions. Non-exclusive public utilities easements for current and future water utility infrastructure, including construction and access easements, will be identified, mapped, dedicated and recorded by Owner simultaneously with recording of the covenants provided for herein. Such easements, covenants and restrictions shall be binding upon and shall run with all of the lots within the Subject Property, shall be in form approved by the City, and shall contain provisions set forth below. The easements, covenants and restrictions shall be finalized and recorded prior to the earlier of (1) transfer or sale of any lot to a new owner (including any transfer by operation of law or by means of bequest, devise or inheritance or trust distribution) or (2) application for a building permit for any lot, with the exception of any permits that may be needed for the relocation of the barn located on Lot 6, or construction of the Lot 6 residence project and any infrastructure work associated with the barn and residence, but in no event shall such easements, covenants and restrictions be recorded later than December 1, 2022 or as mutually agreed to by the parties in writing, signed by the parties. Notwithstanding the foregoing sentence, the easement shown on Exhibit C shall be dedicated and recorded as provided in paragraph 3.2.4. 3.2 Required Terms for Easements. The easements will be in form approved by the City and shall include the following terms and such other terms and conditions as the City deems necessary or appropriate. 3.2.1 The easements will be of the size and scope and at the locations shown on 146 7 the maps attached hereto as Exhibit A (the Third Amended Subdivision Plat depicting the Utility Easement extending from Red Mountain Road through Lots 4, 5 and 6), Exhibit B (the Upper Bench Waterline Plan & Profile and the Vault Plan), and Exhibit C (the Proposed Willoughby Way & Shady Lane Waterline Interconnection). All easements shall be fifty (50) feet in width and consistent with the City’s requirements, standards and specifications . 3.2.2 The easements will be surveyed following installation of the water system infrastructure provided for in the covenants, and the easements will be re-recorded with the final as-built surveyed locations and legal descriptions. 3.2.3 The easements may be relocated by mutual written agreement of the City and the owner of any lot encumbered by an easement. If an agreement is made to relocate an easement at the request of a lot owner, the lot owner shall be responsible for all costs associated with relocation of the easement, including recording costs. 3.2.4 The Shady Lane Line easement shown on Exhibit C will be dedicated and recorded as an amendment to the subdivision plat within 30 days of approval of the Water Service Agreement by the City Council or at such other time as may be mutually agreed to by the parties in writing signed by the parties. Said easement shall be a permanent, perpetual easement. 3.3 Required Terms for Covenants and Restrictions. The covenants and restrictions will be in a form approved by the City and shall include the following terms and such other terms and conditions as the City deems necessary or appropriate. 3.3.1 The covenants and restrictions will be binding upon all lots within the Subject Property; however, Lot 3 shall be exempted from the application of said covenants and restrictions until a Lot 3 exemption termination event occurs as set forth in paragraph 1.6. 3.3.2 No lot within the Subject Property shall ever be further subdivided into smaller lots or conveyed or encumbered in any less than the full original dimensions as shown on the recorded plat; provided however, grants or dedications of easements for utilities may be made to encumber less than all of one lot. Notwithstanding the foregoing, lot line adjustments between or among the lots in the subdivision shall not be prohibited, subject to approvals required by Pitkin County. 3.3.3 Each lot within the Subject Property to which ECUs are allocated must connect to the City treated water system if it is available to serve such lot when such lot requires water service. Except as provided in this paragraph, no wells or independent water sources or supplies, other than the Loughran Ditch and Overflow Ditch water rights used as described herein, may be used to provide raw or treated water service to any lot 147 8 within the Subject Property. If treated water service is not available to service a lot or lots to which ECUs have been allocated at the time a building permit is requested, and such service is not expected to be available at the time service will be needed because reasonable and good faith efforts have been made to construct the Shady Lane Line as contemplated under paragraph 3.4.3 herein, but construction of the Shady Lane Line in accordance with paragraph 3.4.3 herein is not possible despite such efforts, then such lot owners(s) may apply for individual or shared wells for their water service. Should the City later construct infrastructure that allows City treated water service to become available to serve such lot or lots, the owner(s) of the lot or lots may connect to the City water line and will connect to said City water line at such time as any individual well serving such lot or lots becomes inadequate to serve such lot or lots and must be redrilled or replaced. In order to connect to the City water line, the lot owner must pay all then- applicable tap fees and other applicable fees, and abandon its well or its interest in a shared well. The City will provide treated water service to such lot pursuant to this Agreement in such amounts and at such levels of service as determined by the number of ECUs allocated to the lot. 3.3.4 The Owner holds the following interests in the water rights decreed to Loughran Ditch (a/k/a Laughran Ditch) and the Overflow Ditch in Case No. CA4033 (October 24, 1955), with change in point of diversion of both ditches decreed May 11, 1978, in Case No. W-3267 (Water Court, Water Division No. 5): 1.51 cfs of the 1.76 cfs decreed to decreed to the Loughran Ditch and 0.75 cfs of the 1.0 cfs decreed to the Overflow Ditch (“Owner Water Rights”). Upon execution of this Water Service Agreement, Owner, and subsequent lot owners, may continue to use the Owner Water Rights for irrigation within the Subject Property, in accordance with the decrees for the Owner Water Rights, and subject to the following restriction: Diversions of the Owner Water Rights shall be limited to 1/6th of the amount of the Owner Water Rights that are legally and physically available measured at the Hunter Creek headgate during times that decreed instream flows on Hunter Creek are not being met as determined by a validly administered Colorado Water Conservation Board call for such decreed instream flow water rights, including the Hunter Creek Flume & Pipeline water right that was decreed for instream flow use in Case No. 80CW61 (Water Court, Water Division No. 5). The 1/6th interest that may be diverted pursuant to this paragraph during an instream flow call may be used for irrigation on any lot within the Subject Property at the discretion of Owner or as otherwise provided for in the covenants. When the 5/6ths interest is being curtailed, the curtailment shall occur at the point of diversion on Hunter Creek. 3.3.5 Except as provided in this paragraph with respect to Lot 3, no outdoor irrigation will be permitted within the Subject Property using treated water. All lots shall comply with the City of Aspen Water Efficient Landscape Standards in effect at the time of building permit application for any structure on any lot within the Subject Property. Until a Lot 3 exemption termination event occurs as set forth in paragraph 1.6, Lot 3 shall be exempt from the restrictions contained in this paragraph and the owner of Lot 3 may 148 9 continue to irrigate with treated water up to a maximum area of 3,000 square feet of lawns and gardens. 3.4 Water Lines and Infrastructure. At its own expense, Owner will design, construct, install and test the water lines and infrastructure described below, and shown on Exhibits A and B in accordance with and subject to the City's design, materials and construction specifications and approval; provided, however, that to the extent the City desires any lines or facilities with capacities larger than necessary to meet the needs of Subject Property, the City will be responsible for the incremental cost of such enlarged or additional lines or facilities. “Incremental costs” are defined as the difference between the total cost of a particular facility designed and constructed solely to meet the needs of the Subject Property and the total cost of such facility as enlarged at the City's request. 3.4.1 The eight inch (8") water loop line within the easement described on Exhibit A will be designed, constructed, installed and tested by Owner, at its expense, in accordance with the City’s then-existing design, construction, installation and testing rules, regulations, policies and protocols, prior to or concurrently with commencement of construction of the new residence on Lot 6, The line shall be inspected by the City prior to burial. Installation of the loop line on Lot 6 is expected to require relocation of the existing barn and driveway. Owner acknowledges that any site work or construction work undertaken on Lot 6 with regard to the water line and related barn relocation and infrastructure, prior to final approval of this Agreement by the City Council, is undertaken at Owner’s risk, and that Owner will not commence excavation for or construction of the proposed new residence on Lot 6 prior to final approval of this Agreement by the City Council. 3.4.2 The water system improvements located in the Willoughby Way right of way as shown on Exhibit B will be designed, constructed, installed and tested by Owner, at its expense, in accordance with the City’s then-existing design, construction, installation and testing rules, regulations, policies and protocols, prior to or concurrently with commencement of construction of the new residence on Lot 6. The line shall be inspected by the City prior to burial. 3.4.3 Owner is not required to design, construct or install the water loop line between Willoughby Way and Shady Lane as shown on Exhibit C (“Shady Lane Line”) prior to commencement of construction of a new residence on Lot 6. At such time as Owner, or any subsequent lot owner, wishes to construct any residence, dwelling unit(s), or structure(s) requiring water service on any of the four (4) currently vacant lots (Lots 1, 2, 4 and 5), or a Lot 3 exemption termination event occurs, or a Lot 6 termination event occurs, and if the water loop line to be located in the easement for the Shady Lane Line shown on Exhibit C has not yet been installed, Owner or any subsequent lot owner will, at its cost, obtain the needed permits and design, construct, install and test said line in its entirety subject to the City’s prior approval of the design and specifications, before or 149 10 concurrently with the construction of any residence, dwelling unit(s), or structure(s) requiring water service on any of the four (4) vacant lots, or any Lot 3 or Lot 6 exemption termination event. The City may, but need not, construct and install the Shady Lane Line at any time at its discretion, and at its own cost. If the City has constructed and installed the Shady Lane Line at its own expense, and the Owner or any subsequent owner of Lot 1, 2, 4 or 5 thereafter files an application for a building permit to construct a residence, dwelling unit(s), or structure(s) requiring water service on Lot 1, 2, 4 or 5, or seeks a building permit for Lot 3 or Lot 6 that results in an exemption termination event as set forth in paragraph 1.6 and 1.7 herein, Owner or the lot owner filing for the building permit shall reimburse the City for its costs incurred in constructing said line. This reimbursement obligation will be included in the covenants described in paragraph 3.3. Notwithstanding the foregoing, the reimbursement obligation shall cease on the Termination Date if the City terminates the Agreement as provided herein, and has installed the Shady Lane Line at its expense and no application for a building permit for a water-using structure is filed by Owner or any subsequent owner of Lot 1, 2, 4 or 5, or Lot 3 (to the extent Lot 3 remains exempt from this Agreement as set forth in paragraph 1.6) or Lot 6 (to the extent Lot 6 remains exempt from this provision as set forth in paragraph 1.7) ) as of the date of this Agreement. The parties shall cooperate fully in the application process to obtain all necessary permits and approvals required to construct the Shady Lane Line, regardless of which party first seeks to construct the Shady Lane Line, and if the party seeking to construct the line is ultimately unable to obtain all of the necessary permits and approvals to construct the line, after using reasonable good faith efforts to do so, the Shady Lane Line need not be constructed at that time, and the Owner, or subsequent owners of Lots 1, 2, 4 and 5, may nevertheless obtain treated City water if they are otherwise authorized to do so in accordance with this Agreement, including the requirement that ECUs available pursuant to this Agreement have been allocated to the lot owner, and their residences may be connected to then-existing City water lines upon payment of all applicable fees, as provided in this Agreement. Nothing herein shall prevent or prohibit the City from constructing the Shady Lane Line if it is able to do so at a later date at its cost, and the City retains the discretion to require Lots 1, 2, 4, and 5, to connect to the Shady Lane Line in the future and seek reimbursement for each lot’s share of the costs to construct the Shady Lane Line. 3.5 Service Lines. Owner (or any subsequent lot owner) will install any service lines required for such owner’s lot in accordance with and subject to the City's design, materials and construction specifications and approval, at such lot owner's own expense. Such lines will remain the property and sole responsibility of the lot owner. Other than replacement of an existing service line (including replacement if required by construction of the Shady Lane Line, as provided in 3.4.3 above) new service lines extended from the existing water distribution system (or any new water lines that may be constructed pursuant to this Agreement) will only be installed in conjunction with the actual construction of a properly permitted building. A new service line may not be installed for any lot until the building permit for that lot has been issued and all utility fees due under 150 11 this Agreement are paid. 4.Water Rights and Payment in Lieu. The parties acknowledge that it is the policy of the City, if water rights are not transferred to it by a party seeking extraterritorial water service, to require payment in lieu of water rights sufficient in quantity and quality to provide the water required for the requested water service. The parties acknowledge that Owner owns, uses or controls its interest in the decreed water rights in the Loughran and Overflow Ditches as described in paragraph 3.3.4. The City has determined that it is in City’s best interest to permit the Owner and subsequent owners of lots within the Subject Property to continue to use these raw water rights on the terms and conditions set forth herein and to accept payment to the City in lieu of water rights as provided in paragraph 4.2 There are no wells on the Subject Property and Owner agrees not to install any wells on the Subject Property (except as provided in paragraph 2.2 and paragraph 3.3.3), it being the parties’ intention that the only domestic, potable water supplies to be used on or in connection with the Subject Property are those supplied by the City pursuant to this Agreement. Notwithstanding the foregoing, should Owner initiate any water court or administrative proceeding concerning the Owner Water Rights, or any other water rights, the City reserves the right to participate in any water court or administrative proceedings as it deems appropriate to protect its own water rights and supplies. 4.1 Use of Raw Water and Treated Water for Outside Uses on the Subject Property. Owner understands and agrees that the City shall not provide any raw water or treated water for irrigation or other outdoor uses pursuant to this Agreement, except with respect to Lot 3 as provided herein. All raw water use on the Subject Property shall be in accordance with this Agreement and with the decrees for the Owner Water Rights, and otherwise in accordance with Colorado water law governing the appropriation and use of water, provided, however that the City may take such actions as it deems appropriate to protect its own water rights and supplies, if Owner seeks to change the Owner Water Rights or to obtain decrees for any wells authorized by this Agreement. All lots shall comply with the City of Aspen Water Efficient Landscape Standards in effect at the time of building permit application for any structure on any lot within the Subject Property. Until a Lot 3 exemption termination event occurs, Lot 3 shall be exempt from the restrictions contained in this paragraph and the owner of Lot 3 may continue to irrigate up to 3,000 square feet on Lot 3 with treated water. There will be no cross-connections of the raw water supplies or infrastructure provided for irrigation on the Subject Property to the City’s treated water system. Owner, or a subsequent lot owner, will demonstrate in its plans, to the satisfaction of the City, and will be responsible for, the proper installation, maintenance and testing of required backflow prevention devices and for assuring that unprotected cross-connections, structural or sanitary hazards do not exist on each lot within the Subject Property. Each lot owner’s water systems (for both treated and raw water), including water systems serving Lot 3 and Lot 6, whether or not an exemption termination event has occurred, will be available for inspection as provided in the Code, to authorized City 151 12 Representatives to determine whether cross-connections or other structural or sanitary hazards exist, and to confirm that no treated municipal water is being used for outdoor irrigation or aesthetic purposes other than the use authorized for Lot 3 as provided herein. 4.2 Payment in Lieu of Water Rights. Each owner of a lot within the Subject Property, will pay the amount in lieu of water rights for the ECUs allocated to such owner’s lot (or such lesser amount of ECUs as may be determined based initially upon a determination of ECUs requested for such lot owner’s intended construction per the building permit request submitted for such owner’s lot, to be finalized after construction is completed), in accordance with the Code. These initial fees shall be paid by a lot owner prior to issuance of any building permit for such lot. The payment in lieu amount will be determined in accordance with and in the amount as set forth in the Code at the time of building permit application for such lot. Notwithstanding the foregoing, the payment in lieu of water rights will be imposed on the owner of Lot 3 at such time as a building permit is applied for that results in a Lot 3 exemption termination event as set forth in paragraph 1.6 herein. Tap fees, hookup charges and system development fees will be computed and paid as provided in paragraph 10. 4.3 Instream Flow Protection. Owner agrees to suspend deliveries of its raw water rights described in paragraph 3.3.4 and any other raw water supplies, decreed or undecreed, that it may now or hereafter acquire or use on the Subject Property, in the manner described in paragraph 3.3.4 when the decreed instream flows for Hunter Creek are not being met as determined by a validly administered CWCB call for such instream flow rights as decreed at the time of this Agreement. In addition, Owner agrees to curtail usage of its raw water in the same manner as if the raw water supplies were being provided by the City, whenever the City declares a water shortage pursuant to the Code provisions in effect at the time of any such declared shortage. Owner agrees that such curtailment shall occur at the point of diversion on Hunter Creek. The requirements of this paragraph shall be included in the covenants required by this Agreement and will be binding upon all lots within the Subject Property. 5.Construction. Any construction or installation of new water lines shall occur only in accordance with then applicable Code, rules, regulations, standards, specifications and policies of the City. An automated meter reading system shall be installed for all lots that will be served with City treated water pursuant to this Agreement. 6.Fees. Owner shall timely pay all fees imposed by the City in connection with drafting, reviewing and approving this Agreement, including outside legal and consulting fees. The Owner or its successor owner of any lot within the Subject Property, shall timely pay all fees imposed by the City in connection with reviewing and approving design drawings and construction plans for such lot, including outside legal and consulting fees. Owner or any successor owner of any lot within the Subject Property shall also be responsible for timely acquiring and paying for all permits and permit fees from entities other than the City (such as 152 13 Pitkin County and/or other regulatory agencies) necessary for construction of the water mains, lines, and associated facilities, when and to the extent Owner or any successor owner is required to construct said water mains, lines and associated facilities. Additionally, Owner or any successor owner of any lot shall pay, in addition to applicable tap fees and system development fees, all mitigation and impact fees imposed by the City pursuant to the applicable Code provisions as required by paragraph 1.8 and this paragraph at the time of application for a building permit for such lot, provided, however, that this paragraph will apply to Lot 3 at such time as the owner of Lot 3 applies for a building permit that results in a Lot 3 exemption termination event as set forth in paragraph 1.6 herein. All City mitigation and impact fees, which include School Land Dedication, Transportation Demand Management (TDM)/Air Quality, Parks, and Affordable Housing, shall be calculated pursuant to the Aspen City Land Use Code in effect on January 1, 2022. Affordable housing mitigation shall be calculated using the methodology described in Exhibit D attached hereto. As an example, the impact and mitigation fees for the proposed development on Lot 6 are shown in Exhibit D. Affordable housing mitigation fees paid to Pitkin County for each lot shall be deducted as a credit toward the affordable housing mitigation fees due to the City for the same lot pursuant to this Agreement in an equal dollar amount. Owner or its successor owner may pay fee-in-lieu for affordable housing mitigation, extinguish Certificates of Affordable Housing as allowed by the City of Aspen Land Use Code, or mitigate on-site with deed restricted affordable housing. City Council approval is not required for fee-in-lieu payment. The City, at its sole discretion, may adjust the City mitigation and impact fee rates, including the affordable housing mitigation fee calculation methodology, to reflect current Code requirements by providing thirty (30) days written notice prior to the beginning of any Extension Term, and those adjusted mitigation and impact fees will be applicable until further adjustment by the City as provided in this paragraph. 7.Inspection of Construction.Any inspection, connection, and payment of fees required of Owner or any lot owner shall be in accordance with then applicable Code, rules, regulations, standards and policies of the City. 8.Testing. Upon completion of construction by Owner or any lot owner of any of the water lines described herein, and before any new water service is delivered to a lot pursuant to this Agreement or additional water service is delivered to Lot 3 or Lot 6 due to an exemption termination event as described in paragraphs 1.6 and 1.7 herein, all water service lines and facilities (both new and existing) shall be tested and approved by the City in accordance with then applicable Code, rules, regulations, standards and policies of the City. 9.Treated Water Service. The City will provide treated water service in accordance with the Code and applicable policies, rules and regulations, to Lots 1, 2, 4 and 5, and additional water service to Lot 6 as herein provided, and will continue to provide treated water service to Lot 3 as herein provided, to the lesser of the total number of ECUs allocated to the particular lot, or the number of ECUs provided for by the final approved design drawings for that lot, provided that the maximum volume of water the City shall be required to supply each year shall not exceed the amount set forth in paragraph 1.2 above. Any increase in the maximum amount of 153 14 treated water service or ECUs requested for the Subject Property will require approval by the City, and amendment of this Agreement, which approval may or may not be granted. The treated water to be delivered by the City pursuant to the terms of this Agreement may be used for all lawful in-building residential purposes and for fire protection, and may be used for swimming pools and hot tubs, but not for other outdoor uses such as irrigation, ponds (including ponds for fire protection use) or aesthetic water features, except as authorized herein for Lot 3. All water use, including use of Owner’ raw water rights, will be consistent with this Agreement, the City's Water Policy Resolution (Resolution No. 5, Series of 1993, as amended), and water conservation requirements and, whether or not the Subject Property is annexed to the City, water use within the Subject Property shall be subject to the City’s water shortage ordinances, and the City’s Water Efficient Landscaping Standards. The recording of this Agreement (which may occur before or after the covenants required by this Agreement are recorded) shall constitute a covenant running with the Subject Property and with each lot within the Subject Property. 10.Tap Fees, Hookup Charges and System Development Fees - Computation and Payment; Scheduling of Taps. All tap fees for treated water service herein provided shall be assessed at the time of application for a building permit for the structure for which service is sought. No water service shall be provided to any structure absent payment of the appropriate tap fee and any applicable hookup charges. Tap fees and hookup charges shall be paid at the time of building permit issuance. The City Water Department shall determine scheduling of all physical taps or connections to the main lines, which scheduling shall be done in accordance with then applicable Code, rules, regulations, standards and policies of the City. The Owner or subsequent owner of any lot at the time of application for a building permit for that lot shall also pay to the City any applicable system development fees pursuant to the existing Code requirements prior to building permit issuance for all ECUs required to provide the new water service (or additional water service in the case of Lots 3 and 6) for such lot owner’s planned improvements, based upon a determination of ECUs requested for such lot owner’s intended construction per the building permit application accepted for such owner’s lot, and modified, with additional payment or refund as needed, after completion of construction and final ECU determination. 11.Service Lines. Each existing and new service line shall be metered in accordance with the Code at the sole expense of the lot owner receiving water service. Owner acknowledges that service lines, meters and cross-connection or backflow prevention devices, that may presently exist on Lot 3 and Lot 6 may not meet the City's standards, and that those lots may not have cross-connection or backflow prevention devices. Service lines will on Lot 3 and Lot 6 will be replaced if they fail or are damaged, or if replacement is required as part of any building permit sought for Lot 3 or Lot 6, and such service lines must meet the City's standards. Meters, cross-connection and backflow prevention devices will be installed at the lot owner’s expense. Prior to commencement of any construction, the City will inspect the existing service lines and 154 15 will determine the extent to which replacement may be necessary. In addition, as provided in the Code, and whether or not an exemption termination event has occurred, the City may also inspect the existing service lines serving Lot 3 and Lot 6 for cross-connection and backflow prevention devices, and may require installation of devices to prevent cross-connections and backflow as provided in the Code. 12.Limitations on Provision of Water Service. This Agreement is only for the supply of treated water service as herein described and no expansion of uses, connections, or water service beyond those set forth herein is in any way authorized by this Agreement. The City is not by this Agreement prejudging, certifying or guaranteeing its ability to provide treated water service to any use or structure except as provided herein, nor may this Agreement be used as evidence of approval of any land use requests, or as evidence of approval of water service for any land use request, except as provided herein. 13.Service Subject to the City's Charter, Codes, Rules, Regulations and Policies. The Owner and its successors in interest shall be bound by, and all water service provided hereunder shall be subject to, all applicable provisions of the Charter of the City of Aspen and the Code, as well as all applicable rules, policies or regulations of the City now in effect or as may be hereafter adopted as to provision of water service by the City and use of water on the Subject Property; except as otherwise provided for by the “Annexation” provisions in paragraph below. Said Charter, Code, rules and regulations shall be covenants running with the land on the Subject Property and all lots within the Subject Property, and shall be as fully enforceable on the Subject Property as if the same were situated inside the City. The provisions required for the covenants as set forth herein will be specifically included in the covenants. Owner agrees to assist the City in every manner reasonably possible to enforce the City's ordinances, rules and regulations made to protect purity, safety and supply of the water delivered pursuant to this Agreement, and use of water on the Subject Property, including curtailment during times of shortage, elimination of any actual or potential cross-connections, and the utilization of water conservation devices as set forth in the Code. Owner also agrees to prohibit waste of water on the Subject Property, and to make reasonable efforts to enforce such prohibition. The waste of water shall be defined as set forth in the Code. 14.Source of Water Supply. Owner recognizes that the City's water supply is dependent upon sources from which the supply is variable in quantity and quality and beyond the City's reasonable control; therefore, no liability shall attach to the City under this Agreement on account of any failure to accurately anticipate availability of water supply or because of an actual failure of water supply due to inadequate runoff, poor quality, failure of infrastructure, or other occurrence beyond the City's reasonable control. 15.No Guarantee of Water Quality, Quantity or Pressure. The City makes no 155 16 promise or guarantee of pressure, quantity or quality of water supply for any purpose, including fire suppression, except as specifically provided herein or as is required by applicable federal, state and local laws and regulations. The City agrees to treat its water to meet all mandatory local, state and federal potable water standards and to exercise reasonable care and foresight in furnishing water hereunder equal in quality to that furnished inside the City. 16.Property Rights in City Water. All water furnished under this Agreement is provided on a contractual basis for use on the Subject Property as described in this Agreement, and all property rights to the water to be furnished hereunder are reserved to the City. Water service provided under this Agreement does not include any right to make a succession of uses of such water, and upon completion of the primary use of the water on the Subject Property, all dominion over the water provided reverts completely to the City. Subject to the prohibition against waste and any other limitations on water use imposed in this Agreement, Owner shall have no obligation to create any particular volume of return flow from the water furnished under this Agreement. Owner agrees to cooperate with the City in measuring and reporting return flows to the extent such measuring and reporting are required by the Colorado State Engineer or his agents. 17.Enforcement by the City. The parties to this Agreement recognize and agree that the City has the right to enforce its rules, policies, regulations, and ordinances and the terms of this Agreement in accordance with then applicable enforcement provisions of the Code, rules, regulations, standards and policies of the City. Additionally, in the event that Owner, any lot owner, or any users who have purchased or leased a portion of the Subject Property violate the applicable rules, policies, regulations or ordinances of the City, the City shall have all remedies available to it at law or in equity, or as provided in the Code with respect to Owner and such subsequent lot owners or users, as if the Subject Property were located within the City limits. Without limiting the foregoing rights and remedies, Owner agrees that the City may also enforce such applicable rules, policies, regulations or ordinances by injunction, the parties agreeing that the damages to the City from such violations are irreparable, and there is no adequate remedy at law for such violations. The City shall be free from any liability arising out of the exercise of its rights under this paragraph. 18.Termination if Illegal. The parties agree, intend and understand that the obligations imposed by this Agreement are conditioned upon being consistent with state and federal laws and the Code. The parties further agree that if any provision of this Agreement becomes in its performance inconsistent with the Code or state or federal laws, or is declared invalid by a court of competent jurisdiction, the parties shall in good faith negotiate to modify this Agreement so as to make it consistent with the Code or state or federal laws as appropriate, and if, after a reasonable amount of time, their negotiations are unsuccessful, this Agreement shall terminate. The City agrees that its contractual obligations hereunder will not be impaired by any amendment to the Code unless such amendment (or impairment) is mandated by state or federal law. 156 17 19.Annexation. (a) Upon the written request of the City, at its sole discretion, Owner and/or its successors in interest shall petition for and/or consent to annexation of the Subject Property, or those portions thereof as deemed appropriate by the City, to the City of Aspen at such time(s) as determined by the City. Such annexation(s) shall not divest or diminish any land use approvals or development rights awarded by Pitkin County for any lot in the Subject Property, to the extent such approvals and rights for a lot are legally vested on behalf of Owner or its successors in interest prior to annexation to the City, subject to the following: (i)If a building permit for a lot has been accepted by and is pending in the county or if a permit has been issued by the county and construction is not complete at the effective date of annexation, the following provision shall apply: The lot owner shall proceed, at such lot owner’s sole expense, to have the county take action on its pending building permit application and have the permit issued by the county, with any fees due through the time of building permit issuance paid in accordance with the county vested rights approval. Once the permit has been issued by the county, the City will then have jurisdiction to do necessary inspections, change orders and any other functions and services the City provides during the construction process, all in accordance with City code. To the extent that the lot owner has paid building review and inspection fees in advance to the county prior to the effective date of annexation and any City department thereafter incurs any costs in reviewing, inspecting, or otherwise in relation to completion of construction in accordance with the county-accepted building plans, the lot owner is responsible for paying all City fees in accordance with City fee schedules in effect at the time of annexation, notwithstanding there may be duplication of effort between the City and the county. It is the lot owner’s responsibility in such circumstance to obtain refunds from the county, if available. (ii)If no building permit for a lot has been accepted by the county at the effective date of annexation and the vested rights have not expired, the county approval and vested right is not diminished except that the dimensional allowances permitted (specifically Floor Area) by the county under the vested right will be reviewed and calculated under the allowances and limitations of the City’s municipal code in effect at the time of building permit application and all fees due at the time of or in connection with the building permit application shall be calculated in accordance with applicable City code. (iii)On any lot for which land use or development approvals are not vested in accordance with law at the effective date of annexation, or for which vesting has expired, development on such lot shall be subject to the terms, conditions, and regulations of the City code. 157 18 (iv)Notwithstanding annexation of all or any part of the Subject Property, any new development on any lot shall be subject to the City urban runoff management requirements., including payment to the City of applicable fees related to such requirements. Urban runoff management plans shall be submitted to and approved by the City prior to issuance of any building permit for new development by the City or the County. (b) Notwithstanding annexation of all or any part of the Subject Property, this Agreement will remain in full force and effect, subject to termination as herein provided. (c) Failure of Owner or its successors in interest to commence and complete annexation proceedings as herein required shall constitute a material breach of this Agreement authorizing the City to terminate the same. Alternatively, failure of Owner or its successors in interest to commence and complete annexation as herein required shall authorize the City to commence and/or complete such annexation on their behalf, in which event the City shall charge, and Owner and their successors in interest shall pay, all costs and fees associated with such annexation. 20.No Regulated Public Utility Status. The parties agree that by this Agreement the City does not become a regulated public utility compelled to serve other parties similarly situated. Owner agrees that neither it nor its successors in interest shall at any time petition the Colorado Public Utilities Commission to acquire jurisdiction over any water rate set by the City. The parties agree that in the event the City is held to be a regulated public utility by virtue of this Agreement, this Agreement shall terminate and be of no further force or effect. 21.No Waiver. Failure of a party hereto to exercise any right hereunder shall not be deemed a waiver of any such right and shall not affect the right of such party to exercise at some future time said right or any other right it may have hereunder. 22.Notices. All notices required to be given shall be deemed given upon deposit in the United States mail, first class postage prepaid, properly addressed to the person or entity to whom directed at his or its address shown herein below, or at such other address as shall be given by notice pursuant to this paragraph. Owner: Willoughby Ponds Trust c/o John Bucksbaum 71 S. Wacker Drive, Suite 2130 Chicago, IL. 60606 City of Aspen: City of Aspen Utilities Director 158 19 427 Rio Grande Place Aspen, CO 81611 Copies of such notices shall also be sent in the same manner to the City Attorney, City of Aspen, 427 Rio Grande Place, Aspen, Colorado 81611. 23.Force Majeure. No party shall be held liable for a failure to perform hereunder due to wars, strikes, acts of God, natural disasters, drought or other similar occurrences outside of the control of that party. 24.Amendment; Assignment. Neither this Agreement, nor the obligations of either party hereto, nor the right to receive water service hereunder, may be amended or assigned without the written consent of the parties hereto, provided, however, that subsequent owner of any lot within the Subject Property shall be subject to the terms and conditions of this Agreement and shall be entitled to receive water service pursuant to this Agreement as provided herein without amendment of this Agreement. 25.Entire Agreement. Except as otherwise provided herein, this Agreement, including its Exhibits, supersedes and controls all prior written and oral agreements and representations of the parties and is the total integrated agreement among the parties governing the matters provided for herein. 26.Interpretation. Titles and paragraph headings shall not be used to alter the meaning of this Agreement. 27.Binding Agreement - Recording. This Agreement is binding upon the parties hereto, their successors and assigns, and any sale of the Subject Property, or any lot or other portion of the Subject Property shall be subject to this Agreement as provided herein. This Agreement, including the Exhibits hereto, shall be recorded with the Pitkin County Clerk and Recorder at Owner’s expense and, together with the covenants required by this Agreement, shall impose covenants running with the land upon all of the Subject Property. Deeds to subsequent owners shall provide notice of this Agreement and the obligations contained herein. 28.Governing Law; Venue; Attorney Fees. This Agreement and the rights and obligations of the parties hereunder shall be governed by and construed in accordance with the laws of the State of Colorado. Venue for all actions arising under this Agreement shall be Pitkin County, Colorado. In the event legal remedies must be pursued to resolve any dispute or conflict regarding the terms of this Agreement or the rights and obligations of the parties hereto, the prevailing party shall be entitled to recover costs incurred in pursuing such remedies, including expert witness fees and reasonable attorney fees. 29.Authorization of Signatures. The parties acknowledge and represent to each other that all procedures necessary to validly contract and execute this Agreement have been 159 20 performed and that the persons signing for each party have been duly authorized to do so 30.Counterparts. This Agreement may be signed using counterpart signature pages, with the same force and effect as if all parties signed on the same signature page. IN WITNESS WHEREOF, the parties have executed this Water Service Agreement the date and year first above written. THE CITY OF ASPEN, COLORADO A Municipal Corporation and Home Rule City Attest:____________________________ By_____________________________ City Clerk Mayor APPROVED AS TO FORM: ______________________________ Aspen City Attorney OWNER WILLOUGHBY PONDS TRUST, a Colorado trust By:___________________________ Ann Friedman, Co-Trustee STATE OF } } ss COUNTY OF } The foregoing instrument was acknowledged before me this ___ day of ____________, 2022, by a person satisfactorily identified to me as _______________, Co-Trustee of the Willoughby Ponds Trust. Witness my hand and official seal. NOTARY PUBLIC My commission expires: 160 21 By:___________________________ John Bucksbaum Co-Trustee STATE OF } } ss COUNTY OF } The foregoing instrument was acknowledged before me this ___ day of ____________, 2022, by a person satisfactorily identified to me as _______________, Co-Trustee of the Willoughby Ponds Trust. Witness my hand and official seal. NOTARY PUBLIC My commission expires: Index of Exhibits 161 - LEGEND -Approved:Graphic ScaleIn U.S. Feet : 1" = 50'02550100Title:Third AmendedSubdivision PlatRevision#Sheet No.Job No.Drawn by:Date:File:2016-285.001HS10/13/2021RBWillPondsPlatAmend3118 West Sixth Street, Suite 200 Glenwood Springs, CO 81601 970.945.1004 www.sgm-inc.com Date By:EXHIBIT A2Of :----PLS:Third Amended Subdivision Plat Of Willoughby Ponds Estates Pitkin County, Colorado 162 Lot 51.240 Acres±Lot 41.278 Acres ±Graphic ScaleIn Feet: 1" = 20'0102040Title:Revision#Dwg No.Willoughby Ponds Estates Pitkin County, ColoradoJob No.Drawn by:Date:File:PE:QC:2016-285.002----09.24.2020----WillPondsLot6-WaterlinePlan----118 West Sixth Street, Suite 200 Glenwood Springs, CO 81601 970.945.1004 www.sgm-inc.com Date By:EXHIBITBOf :Review SetProject Milestone: 163 .55675 sq. ft. ±1.278 ac. ±.54072 sq. ft. ±1.241 ac. ±PEM1C WETLAND 0.87 ACRE FEN WETLANDS 1.51 ACRES PEM1C WETLAND 0.69 ACRE PEM1C WETLAND0.17 ACREPROPOSED WILLOUGHBY WAY &SHADY LANE INTERCONNECTIONWITH 50' EASEMENT50.00'50.00'50.00'RIO GRANDE TRAIL&R.O.W. RIO GRANDE TRAIL &R.O.W. FEN WETLANDS CONNECT TO EXISTING WATER LINE OPENSPACE Approved:Graphic ScaleIn Feet: 1" = 60'03060120Title:Wetlands Map WithTopoRevision#Dwg No.Willoughby Ponds Estates Pitkin County, ColoradoJob No.Drawn by:Date:File:PE:QC:2016-285.002----09.24.2020----Willoughby-WetlandsMap----118 West Sixth Street, Suite 200 Glenwood Springs, CO 81601 970.945.1004 www.sgm-inc.com Date By:EXHIBIT C4Of :Notice: Review SetProject Milestone:PLS:164 * The City reserves the right to based mitigation and impact fees on as built surveys EXHIBIT D – FEE CALCULATIONS AFFORDABLE HOUSING MITIGATION FEE CALCULATION FORMULA: 1. Determine the Net Livable area of the new development (review of approved building plan sets). The Net Livable area shall be determined using the method described in section 26.575 of the Aspen Land Use Code (LUC). 2. Multiply the Net Livable Area by 30%. Affordable housing Net Livable area shall be provided in an amount equal to at least 30% of the additional free-market residential net livable area – LUC section 26.470.080(5). 3. Divide the affordable net livable area by 400 sq. ft. to obtain the number of full-time equivalent employee (FTE) number. Whenever an affordable housing mitigation requirement is required to be converted between a number of employees requirement and square footage requirement, the conversion factor shall be 1 employee per every 400 square ft. of net livable area. LUC section 26.470.050(e). 4. Multiply the FTE number by the fee-in-lieu per FTE, in this case Category 4 rate of $302,879. Affordable housing must be provided at a Category 4 rate, which is $302,879 per FTE. LUC section 26.470.0. 5. Subtract affordable housing mitigation fees paid to Pitkin County on the subject lot. Formula (Affordable Housing Net Livable x 0.3) / 400 sq. ft. = FTE x $302,879 minus any fees paid to Pitkin County for affordable housing mitigation on the subject lot = City Affordable Housing Fee. _____________________________________________________________________________________ Water Services Agreement – Lot 6 Willoughby Ponds Subdivision City of Aspen Net Livable Calculation per attached drawing: 7,138 sf * City Affordable Housing Mitigation Calculation: 7,138 x .3 = 2,141.4 / 400sf = 5.35 FTE x $302,879 = $1,621,462.73 $1,621,462.73 – $677,330.44 (Pitkin County’s Mitigation Fee credit estimate) = $944,132.29 ($677,330 – is based on Pitkin County Calculation of Gross Floor Area: 9,431 sf, per BOCC Resolution #19, of 2019) Affordable Housing Mitigation Fee: $944,132.29 Remaining Impact Fees Calculation: These are based on Floor Area of 8,966 sf per attached drawing and a land area (5.223 acres) and actual value of land ($11.3M) per Pitkin County Assessor. (LUC chapter 26.620) School Lands $12,841.77 896 x 0.8744 = 783.46 x $49.67 (per sf land valuation from assessor) x .33 = $12,841.77 Parks $48,864.70 ($5.45 per sq. ft. of Floor Area) TDM $5,469.26 ($0.61 per sq. ft. of Floor Area) TOTAL Mitigation and Impact Fees: $1,011,308.02 165 Resolution #099, Series 2022 Resolution to Adopt STR Program Guidelines September 5, 2022 Page 1 of 4 MEMORANDUM TO: Mayor Torre and Aspen City Council FROM: Haley Hart, Long-Range Planner THROUGH: Phillip Supino, Community Development Director MEMO DATE: September 5, 2022 MEETING DATE: September 13, 2022 RE: Resolution #099, Series of 2022 Adoption of Short-term Rental Program Guidelines REQUEST OF COUNCIL: Staff requests City Council review and approve Resolution #099, Series 2022. This resolution would approve the Short-term Rental (STR) Program Guidelines in support of the regulatory framework established by Ordinance #09, Series of 2022, Short-term Rental Regulations. SUMMARY AND BACKGROUND: In December 2021, Council passed Ordinance #26, Series of 2021, addressing the City’s existing vacation rental program. Ordinance #26 extended existing Vacation Rental Permits, issued as of December 8, 2021, through September 30, 2022. Pursuant to Ordinance #26, Series of 2021, no new Vacation Rental Permits were issued after December 8, 2021. Council’s action in December of 2021 came in response to community concerns related to the continued expansion of the STR market. As of December 8, 2021, there were 1,319 valid Vacation Rental Permits, making up 18% of all residential units in the City. Consequently, Council stopped the issuance of new Vacation Rental Permits and directed staff to amend the Land Use Code (LUC) to further regulate the STR market in Aspen.1 Council determined that establishing STR regulations for licensing, permitting, capping in residential zones, inspecting, enforcing, and establishing a new fee structure for services performed for STRs was needed to ensure that the City established an equitable balance between the STR industry, the local community and the Aspen Area Community Plan. 1 It should be noted that the City previously referred to the market and permits as “Vacation Rentals.” The currently accepted term is Short-term Rental (STR). This memo will refer to the program as STRs. 166 Resolution to Adopt STR Program Guidelines September 5, 2022 Page 2 of 4 In response, Council passed Ordinance #09, Series 2022, on second reading June 28, 2022. This ordinance implemented a comprehensive set of regulations related to the issuance of STR permits. During first reading of Ordinance #09, Council directed staff to include a draft version of the STR Program Guidelines, a document created by staff to assist operators and owners of STRs to understand and comply with the regulations in Ordinance #09. On second reading, Council reviewed a draft of the STR Program Guidelines with the intention and understanding that the document would be completed and adopted prior to the expiration of Ordinance #26 on September 30th, 2022. Following further development by staff and the consultant team, the current draft of the STR Program Guidelines outlines the permit process and the difference between the three permit types, which type of permit a unit qualifies for, fee and tax information for each permit, zoning restrictions, inspection and life safety requirements, and general application and explanation of Ordinance #09. The STR Program Guidelines assist operators and owners of STRs in compliance with the new STR Regulations as adopted in the City’s Municipal code Section 26.530. Section 1 contains purpose and intent language explaining the rationale for the passage of Ordinance #09 and why the City regulates STRs. Section 1 also includes a glossary of the new codified definitions created by Ordinance #09. Terms such as ‘lodge’, ‘natural person’ and ‘qualified owner’s representative’, are critical for the public’s understanding as these set the basis for program details like permit type and non-transferability. Using a flow chart exercise, Section 2 gives direction to owners and operators of STRs in determining which STR permit a property or unit qualifies for. The three permits: STR-LE, STR-OO, and STR-C, have distinct differences and this section’s primary purpose is to clearly identify which permit an applicant may apply for. Section 3 details the STR permit system with three distinct permit types, the application requirements for each permit, and the fees associated with the permit. This section also includes a table of the permit cap numbers in residential zones for the STR-C permit. Section 4 provides the information that any permittee or qualified owner’s representative needs to complete an STR permit application. The concept of a “qualified owner’s representative” is defined and explained. Property information such as zoning and parking requirements, occupancy limits and what required documents are needed for permit submission are included within Section 4. Section 5 includes operational requirements for an STR, describes the concept of permit non-transferability and the procedures related to the waitlist for STR-C permits. This section aids owners and operators to ensure that when a sale of a property occurs, any potential impacts are fully transparent. Other content includes a 15-day noticing period for neighbors within a 300-foot radius of any new STR permit applicant, required life safety standards and in-unit messaging. Documents in support of these details such as the Good Neighbor Guide created in collaboration with ACRA are linked in Section 5. 167 Resolution to Adopt STR Program Guidelines September 5, 2022 Page 3 of 4 Section 6 details enforcement policies and procedures. The new Aspen 311 system includes a subsection for STR complaints and is linked. Additionally, all grounds for revocations or abandonment of an STR permit are outlined so that owners and operators can understand when and why an STR permit may be withdrawn by the City. Section 7 directs information regarding finances and links to the City’s Finance webpage for documents such as business license applications. The STR Program Guidelines were created with intention that owners and operators can use the guidelines and prepare themselves for updates to STR operations and the new permitting system prior to the expiration of the moratorium, October 1, 2022. The Guidelines are part of Community Development staff’s focus on customer service, transparency of process, and access to information as essential elements of the roll-out of new STR regulations. The newly created Lodging and Downtown Services Program Manager position is charged with ensuring that STR owners and operators can easily access all the information needed to navigate the new regulations. The safe and legal operation of STRs is staff’s primary objective. The Guidelines are an essential tool to support those efforts. STAFF DISCUSSION: Included is the STR Program Guidelines document. This document describes in detail the contents and processes created by Ordinance #09. Ordinance #09 is included as Exhibit A for Council’s review. Staff has focused on the creation of the STR Program Guidelines to support operators and owners of STRs in the adoption of the new code and policy regulations. As a supplement to the Land Use Code, the Guidelines may be amended and re-adopted as needed outside of the formal Land Use Code amendment process. Council is the final review authority on the adoption of the Guidelines. CONCLUSION AND NEXT STEPS: With new regulations adopted, staff is completing the development of the STR program and the systems needed to administer the regulations. Adopting the STR Program Guidelines through Resolution is a critical step in the roll-out of the new STR program. The guidelines as proposed give applicants the tools necessary to comply with the regulations. Adoption at the 9/13/22 Council meeting will ensure the Guidelines are in place prior to the 10/1/22 expiration of the STR permit moratorium. FINANCIAL IMPACTS: N/A ENVIRONMENTAL IMPACTS: N/A. ALTERNATIVES: Should Council choose not to approve the draft STR Program Guidelines, Council could direct staff to make amendments to the guidelines and return for another Resolution at a later date prior to October 1, 2022. Given the timeline on informing the public of the guidelines, an additional hearing will create time constraints to staff’s ability to respond to that deadline. 168 Resolution to Adopt STR Program Guidelines September 5, 2022 Page 4 of 4 RECOMMENDATIONS: Staff recommends that Council approve the STR Program Guidelines via Resolution #099, Series of 2022. CITY MANAGER COMMENTS: EXHIBITS: Exhibit A – Ordinance #09, Series of 2022 169 RESOLUTION #099, SERIES OF 2022 A RESOLUTION OF THE ASPEN CITY COUNCIL ADOPTING CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES WHEREAS,at their regular meeting on June 28, 2022, City Council approved Ordinance #09, Series 2022, (Ordinance #9), by a 5 to 0 vote, adopting Short-term Rental Regulations; and WHEREAS,during such regular meeting, City Council was presented with proposed Short-term Rental Program Guidelines; and WHEREAS,in the Aspen Municipal Code Section 26.530.050 D., “Adoption of and Compliance with STR Program Guidelines”, adopted pursuant to Ordinance #9, such guidelines shall set forth the standards, procedures, and supplemental information necessary for the operation of a short- term rental within the City of Aspen; and WHEREAS,Section 26.530.050.D, approved pursuant to Ordinance #9, and Aspen Municipal Code Section 26.208.010.H, Powers and Duties of the City Council, allows for Council’s adoption of any guidelines that will be used in a guiding or regulatory capacity by the City and allows the amendment of such guidelines by resolution of City Council; and WHEREAS, since the adoption of Ordinance #09 on June 28, 2022, staff has built the short-term rentalprogram to support the new policywhich establishes an equitable balance between the short- term rental industry, the local community, and the Aspen Area Community Plan and in so, has modified the previously proposed the Short-term Rental Program Guidelines; and WHEREAS, the adoption of the Short-term Rental Program Guidelines describes new program details that take effect October 1, 2022 to ensure compliance under the new permit regime and that standards are met to increase governmental transparency and to direct operators and owners of short-term rentals in understanding and applying the new policy; and WHEREAS,the City determined that establishing the regulations for licensing, permitting, capping, inspecting, enforcing, and establishing a fee structure for services performed for short- term rentals in this Resolution furthers and is necessary for the promotion of public health, safety, and welfare for the operation of short-term rentals; and. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That City Council hereby adopts the “City of Aspen Short-term Rental Program Guidelines,” attached as Exhibit A. 170 APPROVED by the Aspen City Council at its regular meeting on September 13, 2022. Attest: _____________________________ ____________________________ Nicole Henning, City Clerk Torre, Mayor Approved as to form: _____________________________ James R. True, City Attorney 171 1 Short-term Rental Program Guidelines 172 2 TABLE OF CONTENTS SECTION 1: Introduction to Short-term Rentals…………..……...........…………...............…..…...................1 Purpose & Intent………………………………………..…………………….…..……...........................................…1 Glossary of Terms…………………………………………..…………..…….…...........................................……….2 SECTION 2: Choosing a Permit……….........................................................................................................3 Permit Flowchart……..…………………………..………..……………………...........................................……4-5 SECTION 3: Description of Permit Types…………………………..………..…….............................................…6 3.A: Lodging Exempt Short-term Rental (STR-LE)……….…………...........................................…6 3.B: Owner-occupied Short-term Rental (STR-OO)…….........................................................7-8 3.C: Short-term Rental Classic (STR-C)……………..………............................................…..….....9-10 Short-term Rental Classic (STR-C) Permit Cap Details………...............................................….11 SECTION 4: Application Information…………………………….……….……...........................................……….12 Permittee Information………………………………………………….……............................................…......12 Qualified Owner’s Representative (QOR) ………………….……….........................................….12-13 STR Property Information………………………..……………………………............................................13-14 Supplemental Documents…………………..………..........................................................................14-15 Business Licensing.……..................……..................…….....................................................................15 SECTION 5: Operational Requirements…………………………............................................…………..………16 Non-Transferability & STR-C Waitlist………………….............................................………………..…..16 Neighborhood Noticing…………………………………..……............................................…………...….16-17 Life Safety & In-unit Compliance………………………………............................................……....……..18 SECTION 6: Enforcement……………………………..……………………...........................................…………………19 Complaints………………………………………………………………………….............................................………19 Violations & Penalties…………………………………………………............................................…….….19-20 SECTION 7: Financial Information………………..……………………..........................................…………………21 More information about the City of Aspen’s short-term rental program, including resources mentioned in this document, can be found at aspen.gov/strs. Subscribe to the bi-weekly Community Development newsletter here. Disclaimer: The information outlined in this document is informative to help guide permittees and qualified owner representatives comply with the City of Aspen’s short-term rental code per the Land Use Code, Section 26.530. Information in this guide does not supersede the regulations as described in Section 26.530.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES173 SECTION 1: INTRODUCTION TO SHORT-TERM RENTALS Purpose & Intent A Short-term rental (STR) is defined by the City of Aspen as the occupancy of a hotel, lodge, or residential unit offered as a vacation rental for a period of less than 30 days. STR properties serve an important role in supplementing Aspen’s lodging bed base, diversifying lodging options, and providing economic benefit to property owners and the community. There are community impacts from this activity. Resident quality of life, parking, wildlife protection, affordable housing, transportation, and City services are all impacted from the operation of STRs. Due to the potential for adverse impacts, STRs are regulated by the City to protect the health, safety, and welfare of owners, neighbors, and visitors and to balance conflicting community needs and interests. The City recognizes the importance of a diverse lodging bed base and will continue regulatory fine-tuning to ensure the policy, over time, supports community policies and needs. If you rent your unit for a period of less than 30 days, you are required to first obtain an STR permit from the City’s Community Development Department and a business license from the City’s Finance Department. All STR permits through the City are valid for a period of one year and must be renewed annually within 14 days of their expiration date. STR permits are not available for employee, affordable, or other deed or covenant restricted housing. The first and last name of a “natural person” is required on all STR permits. The natural person, known as the permittee, must have at least a 10% ownership interest in the property for which the STR permit is issued. If a property is owned by an LLC, trust, or other organization, that business must designate one of its owners to be listed as the permittee. Permittees are responsible for providing a significant level of in-person service to guests renting their property. If a permittee is unable to provide in-person service, they may designate a qualified owner’s representative (QOR) on the permit to be a point of contact for the STR. STR permits are non-transferable between people or property and are issued only to the natural person and only for the property address named on the permit. If a change of ownership occurs during the valid lifetime of a permit, the permit will be considered revoked, and the new owner must apply for a new STR permit if they wish to rent the property on a short-term basis. All new STRs are required to comply with life-safety and operational standards as described in this document. STRs are subject to periodic inspections by City personnel. The permittee or QOR must be present for inspections. Certain new permit types also require a neighborhood noticing period prior to permit issuance. HOA properties are required to demonstrate HOA consent prior to issuance of an STR permit via documentation required at time of STR permit application. This STR Guidelines document is meant to serve as a comprehensive guide for STR owners and operators to inform permit eligibility, application requirements, and how to maintain compliance with STR regulations. All “Sections” refer to sections in the City of Aspen Land Use Code.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES1174 22 Glossary of Terms Condo-hotel. A condo-hotel is a lodging property which meets the definition of Lodge in Section 26.104.110, Use Categories, and in which ownership of individual lodge units has been condominiumized in accordance with The Colorado Condominium Ownership Act, C.R.S. § 38-33-101, et. seq. Hotel. See definition of Lodge, Section 26.104.110 Use Categories. Motel. See definition of Lodge, Section 26.104.110 Use Categories. Lodge. See definition of Lodge, Section 26.104.110 Use Categories. Natural Person. A living, individual human being, as distinct from a “legal person” for the purpose of assigning certain legal rights. Owner-Occupied. A residential property that serves as the primary residence of the title owner of the property. Owner-Occupant. For the purposes of permitting specific types of STRs, owner-occupant is a natural person whose principal residence is the City of Aspen residential property or unit for which an STR permit is sought. Permittee. Permits shall only be issued in the name of one natural person who has an ownership interest (of at least 10%) in the property for which the permit is issued. Pillow. A unit of measure for assessing affordable housing generation and occupancy of lodge rooms/ units per bedroom in an STR. Each lodge and STR unit shall be considered to have two pillows for each bedroom. For calculating occupancy in STRs, sleeper sofas, murphy beds, and similar sleeping accommodations shall be considered as two pillows. Studio units shall be considered to have two pillows. Primary residence. The permanent residential address, as demonstrated by acceptable legal documentation described in this title, of an owner-occupied STR permit holder. Qualified Owner’s Representative (QOR). A natural person who is legally designated on the permit application by the permittee to apply for and maintain compliance with a City of Aspen STR permit. For each STR property, there may be only one qualified owner’s representative. All qualified owner’s representatives must have a business license through the City of Aspen. Short-term Rental (STR). The use or occupancy of a residential property or dwelling unit, in whole or in part, by the general public for a fee, primarily for tourist accommodations, and for a period of less than 30 days. Timeshare, hotel, motel, and bed and breakfast uses are not STR uses. SECTION 1: INTRODUCTION TO SHORT-TERM RENTALS CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES175 SECTION 2: CHOOSING A PERMIT There are three STR permit types available to property owners wishing to rent their units for periods of less than 30 days. The STR permit is differentiated based on the permittee’s residency, zone district, and usage of the unit. Each STR permit type has different regulatory and financial requirements which are described in detail in this document. When the permittee or QOR applies for a new STR permit or is renewing an STR permit, the permittee or QOR will choose from one of the following permit types: • Short-term Rental Classic Permit (STR-C), • Owner-occupied Short-term Rental Permit (STR-OO), or • Lodging Exempt Short-term Rental Permit (STR-LE). Some units may be eligible for more than one type of permit, however only one permit is allowed per unit. To determine which permit type a unit can apply for, use the flow chart on the following page. Credit: C2 Photography CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES3176 44 Permit Flow Chart To determine which STR permit you may apply for, please follow the below prompts: MY UNIT IS CONSIDERED A “LODGE” PER THE CITY OF ASPEN MUNICIPAL CODE DEFINITION IN SECTION 26.104.110, USE CATEGORIES: Lodge uses have the following characteristics: •At least fifteen individual units used for overnight lodging by the general public, and •With or without kitchens within individual units, and •With or without meals provided, and •Which has common reservation and cleaning services, combined utilities and on-site management and reception services, and •On-site, in-person management and reception services during normal business hours (remote management and reception services may be provided all other times). To qualify as a Lodge use, the property must have at least three of the following amenities on-site: •Commercial kitchen or other in-house food service. •On or off-site fitness or gym facilities. •Pool, hot tub, sauna, or spa facilities. •Lounge. •Entertainment facilities accessible to guests. •Bar or restaurant. •Retail or services (such as guide services, concierge, equipment rental or repair, spa or beauty facility). •Meeting, conference, entertainment, or ballroom facilities. •Other amenities as may be provided to address the specific lodge needs. YES, you can apply for an STR-LE permit. Please see Section 3.A for details on the STR-LE permit. NO. MY UNIT IS MY PRIMARY RESIDENCE, AND I CAN SUBMIT TWO OF THE FOLLOWING VALID DOCUMENTS INDICATING THAT THE STR IS MY PRIMARY RESIDENCE:CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES177 5 i.Valid Colorado driver’s license; ii.Valid motor vehicle registration; iii.Voter registration; iv.Federal or state tax return; or, v.Other legal documentation deemed sufficient by the Community Development Director which is pertinent toward establishing principal residence. YES, see below.NO. YOU CAN APPLY FOR THE STR-OO PERMIT. The STR-OO permit allows a maximum of 120 rental nights per year. Please see Section 3.B for details on the STR-OO permit. WHAT IF I WANT TO RENT MY UNIT FOR MORE THAN 120 DAYS PER YEAR? YOU CAN APPLY FOR THE STR-C PERMIT. The STR-C permit allows an unlimited number of rental nights per year. In certain residential zones, there are a limited number of STR-C permits available; applicants may be subject to a waitlist. Please see Section 3.C for details on the STR-C permit. CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES5178 66 3.A: Lodging Exempt Short-term Rental (STR-LE) Who is it for? The Lodging Exempt STR (STR-LE) permit is available solely to lodging and condo-hotel properties which meet the definition of Lodge or Condo-hotel per Section 26.104.110, Use Categories. Some characteristics of Lodges and Condo-hotels include, but are not limited to, common reservation and cleaning services, combined utilities, and on-site, in-person management and reception services during normal business hours. Properties eligible for STR-LE permits are required to be marketed under a unified brand and marketing model where the individual ownership of units is secondary to the central brand of the property. There is no limit to the number of rental nights allowed under the STR-LE permit. Fractional ownership units and/or timeshares are not regulated under Ordinance No. 09, Series of 2022. Multi-family condominiumized residential properties that do not meet the definition of Lodge or Condo- hotel are not eligible for STR-LE permits and must instead apply for an STR-OO or STR-C permit. Application Requirements If desired, one STR-LE permit may be applied for to cover multiple properties within a lodge or condo- hotel property. A QOR must be designated as the primary point of contact for the permit. The QOR may apply for the STR-LE permit on behalf of multiple properties and is required to list the total number of properties covered by the single permit. In addition to the QOR responsibilities as described within the STR Program Guidelines, the QOR is responsible for filing taxes on behalf of any units covered under the single STR-LE permit. In the instance which a property owner chooses to obtain a permit solely for their lodge unit, they may apply for a STR-C or STR-OO permit as the permittee and may designate a QOR if they desire to do so. The QOR is responsible for filing taxes on behalf of the property and each permittee and QOR must have a valid business license. Each QOR and the owners of all units covered under STR-LE permits are required to maintain valid business licenses through the City of Aspen’s Finance Department. The QOR will be responsible for maintaining up-to-date business license information for each property covered in an STR-LE permit. An affidavit attesting to eligibility for the STR-LE permit must be submitted with each STR-LE permit application; only one affidavit is required per permit. STR-LE units are not required to provide public noticing. Permit Limits Unlimited numbers of STR-LE permits are available in zone districts where STRs are a permitted use. STR-LE permits are prohibited and not available for properties within in the A, OS, P, WP, A and PUB zone districts. SECTION 3: DESCRIPTION OF PERMIT TYPES Requirements:Department & Process:Cost: Business License Finance; annual renewal $150/year Short-term Rental Permit Community Development; annual renewal $148/unit/year Sales & Lodging Tax Finance; quarterly filings 11.3%* Financial RequirementsCITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES*May be subject to change 179 3.B: Owner-occupied Short-term Rental (STR-OO) Who is it for? The Owner-occupied STR (STR-OO) permit is available only to City of Aspen residents who own and can prove that the property is their primary residence. STR-OO permits are issued to full-time Aspen residents and are limited to 120 rental nights per calendar year from the date of permit issuance. If an applicant wishes to short-term their property for more than 120 nights per year, they may apply for an STR-C permit. Application Requirements Applicants who wish to obtain an STR-OO permit are required to submit two forms of valid documentation indicating that the property is the permittee’s primary residence. The following are acceptable forms of proof of primary residence: •Valid Colorado driver’s License •Valid motor vehicle registration •Voter registration •Federal or state tax return •Other legal documentation pertinent toward establishing principal residence may be deemed sufficient by the Community Development Director. Applications for STR-OO permits require the full name of a natural person as the “permittee” on the application. If the title to the property is held by a corporation, partnership, association, or company, the name and contact information of any officer, director or stockholder holding 10% or more of the interests in the corporation, partnership, association, or company is required on the application. If desired, permittees can designate a QOR to be the property manager for the STR property. The QOR must live within the Roaring Fork River Drainage Area (see next page for map) so that they are able to promptly respond, in-person, to emergencies at the property within two hours of being notified. All contact information for a QOR must be included in the STR application, and any updates to QOR contact information must be provided to the Community Development Department within 10 days or the permittee will be subject to enforcement action. All permittees and/or QOR of STRs are required to maintain valid business licenses through the City of Aspen’s Finance Department. Applicants wishing to obtain an STR-OO permit are responsible for maintaining compliance with life safety standards in Title 8 of the City’s Municipal Code and in these STR Program Guidelines. A signed self-inspection affidavit indicating compliance with life safety items will be a required submission with each permit application. STR properties may be subject to inspection by City staff and their agents within 48 hours’ notice. In addition to the self-inspection affidavit, STR-OO applicants must submit a signed document indicating that they have HOA approval to operate an STR at the property. Upon application for a new STR-OO permit, the permittee is subject to a 15-day neighborhood noticing period in accordance with the requirements in Section 26.304.060.E.3.b-c. Manner of Notice. The permittee is responsible for posting signage and mailing notices to each property within 300 feet of the subject property. Proof of noticing is required prior to permit issuance. Permit renewals do not require neighborhood noticing. SECTION 3: DESCRIPTION OF PERMIT TYPES CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES7180 88 I-70 US 6 I-70 CO 8 2 Silt Glenwood Springs Rifle New Castle NOTE: Data source for this map: Federal/State Lands, Private Parcels, Municipalities, Roads and Water Features from Garfield County GIS Department. Colorado River from USGS National Hydrography Dataset Program. This map/drawing/image is a graphical representation of the features depicted and is not a legal representation. The accuracy may change depending on the enlargement or reduction. Copyright 2010 Aspen/Pitkin GIS 031.5 Miles Legend Roads Colorado River (Project Area) Water Features Adjusted 5 mi Buffer Actual 5 mi Buffer Private Parcels Municipalities BLM STATE OF CO DEPT OF ENERGY USFS APCHA OWNERSHIP EXCLUSION ZONE Roaring Fork Drainage Area Permit Limits Unlimited numbers of STR-OO permits are available in zone districts where STRs are a permitted use. STR-OO permits are prohibited and not available for properties within in the A, OS, P, WP, A, and PUB Zone Districts. SECTION 3: DESCRIPTION OF PERMIT TYPES Financial Requirements Requirements:Department & Process:Cost: Business License Finance; Annual Renewal $150/year STR Permit Community Development; Annual Renewal $394/year Sales & Lodging Tax Finance; Quarterly Filings 11.3%*CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES*May be subject to change 181 SECTION 3: DESCRIPTION OF PERMIT TYPES 3.C: Short-term Rental Classic (STR-C) Who is it for? The STR Classic (STR-C) permit may be issued to any natural person who owns a residence in the City of Aspen. Unlike the STR-OO permit, STR-C permits are available to non-owner-occupied residential properties in the City of Aspen, and proof of primary residence is not required. STR-C permits are also available to owner-occupied residences where the permittee wishes to short-term rent the property for more than 120 nights per year. Application Requirements The STR-C permit is available in limited quantities in certain zone districts (see STR-C Permit Cap Details on page 11). STR-C permits are capped in residential zones. All STR-C permit applications for properties within a capped zone district will be subject to a waitlist if the number of STR-C permits issued does not meet the threshold for the total allowable permits. The STR-C waitlist is updated on a regular basis and publicly available at aspen.gov/strs. STR-C permit applications require the full name of a natural person as the permittee on the application. If the title to the property is held by a corporation, partnership, association, or company, the name and contact information of any officer, director or stockholder holding ten percent or more of the interests in the corporation, partnership, association, or company is required on the application. If desired, permittees may designate a QOR to be the primary point of contact for the property. The QOR must live within the Roaring Fork River Drainage Area so that they are able to promptly respond, in-person, to emergencies at the property within 2 hours of being notified. All contact information for a QOR must be included in the STR application, and any updates to QOR contact information must be provided to the Community Development department within 10 days or the permittee will be subject to enforcement action. All permittees and/or QOR of STRs are required to maintain valid business licenses through the City of Aspen’s Finance Department. Applicants wishing to obtain an STR-OO permit are responsible for maintaining compliance with life safety standards in Title 8 of the City of Aspen Municipal Code and in this document. A signed self-inspection affidavit indicating compliance with life-safety items will be a required submission with each permit application. STR properties will be subject to inspection by City of Aspen staff and their agents within 48 hours’ notice. In addition to the self-inspection affidavit, STR-C applicants must submit a signed document indicating that they have HOA approval to operate an STR at the property. Upon application for a new STR-OO permit, the permittee is subject to a 15-day neighborhood noticing period in accordance with the requirements in Section 26.304.060.E.3.bc. Manner of Notice. The permittee is responsible for posting signage and mailing notices to each property within 300 feet of the subject property. Proof of noticing is required prior to permit issuance. Permit renewals do not require neighborhood noticing.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES9182 1010 SECTION 3: DESCRIPTION OF PERMIT TYPES Requirements:Department & Process:Cost: Business License Finance; Annual Renewal $150/year STR Permit Community Development; Annual Renewal $148/unit/year Sales & Lodging Tax Finance; Quarterly Flings 11.3%* Permit Limits There is no annual limit on the number of nights per year an STR-C may operate; however limited numbers of STR-C permits are available for issue in residential zone districts (see page 11). An unlimited number of STR-C permits are available in the L, CL, CC, and C-1 Zone Districts and Lodge and Lodge Preservation Overlay. STR-C permits are prohibited in the A, OS, P, WP, A, and PUB Zone Districts (see page 11). Financial Requirements CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES*May be subject to change 183 SECTION 3: DESCRIPTION OF PERMIT TYPES Zone District:Number of STR-C Permits: RR – Rural Residential 2 R-3 - High Density Residential 1 R-6 – Medium Density Residential 81 R-15 – Moderate Density Residential 47 R-15A – Moderate Density Residential - A 8 R-15B – Moderate Density Residential - B 12 R-30 – Low Density Residential 1 R/MF – Residential Multi-Family 190 R/MFA - Residential Multi-Family - A 12 AH - Affordable Housing 9 MU – Mixed Use 39 NC – Neighborhood Commercial 1 SCI – Service/Commercial/Industrial 2 SKI – Ski Area Base 2 C-1 – Commercial Unlimited permits allowed CC – Commercial Core Unlimited permits allowed L - Lodge Unlimited permits allowed CL – Commercial Lodge Unlimited permits allowed Lodge Overlay Unlimited permits allowed Lodge Preservation Overlay Unlimited permits allowed A - Academic Prohibited C – Conservation Prohibited OS – Open Space Prohibited PUB - Public Prohibited P - Park Prohibited WP – Wildlife Preservation Prohibited * Caps by zone district may be amended time to time. All STR locations, allowable zones, permit information, and waitlist status may be found on the City of Aspen’s STR website. Short-term Rental Classic (STR-C) Permit Cap Details Aspen City Council placed caps on the number of STR-C permits available for issue in residential zone districts. Caps are designed to ensure zone districts function as intended and in harmony with established uses. All permit types, including STR-C, are allowed with no cap in the L, CL, CC, and C-1 zone districts, and Lodge Overlay and Lodge Preservation Overlay Zones.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES11184 1212 SECTION 4: APPLICATION INFORMATION When applying for an STR permit, the following information will be required and verified by City staff on each application form. Applicants are urged to gather all necessary information prior to starting an application for STR permit, as applications with incomplete or incorrect information will experience delayed processing times and may be rejected altogether. Permittee Information Detailed permittee information is required on all applications. STR-LE permits are exempt from this requirement if the permit covers multiple properties in a lodge. The QOR may enter their contact information in the Permittee section of an STR-LE application. The permittee must have a 10% (or greater) ownership interest in the property. If a property is owned by an LLC, trust, or other organization, that business must designate one of its owners to be listed as the permittee. The permittee must be a natural person, as distinct from a legal person, for the purposes of this application. A first and last name is required on an application; LLC, trust, or organizational names will not be accepted. STR properties and permits are the legal responsibility of the permittee named in the application, including compliance with regulations, enforcement, and responsiveness to visitors and City staff. Required Permittee Information: First Name, Last Name, Mailing Address, Phone Number, Email Address Qualified Owner’s Representative (QOR) All STR units and permits are the responsibility of the permittee, who is the owner of the property. This is inclusive of compliance, enforcement, and responsiveness to visitors and City staff. The City recognizes that many STR property owners live out of town and for this reason are unable to respond to concerns at the STR property in person or in a timely manner. In other cases, property owners may simply prefer to hire an individual or property management company to run the STR unit, even if they reside at the property or live nearby. If for whichever reason the property owner is either unable or unwilling to be the point of contact for the STR unit, the owner may designate a qualified owner’s representative (QOR) in their place.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES185 SECTION 4: APPLICATION INFORMATION If designated by the permittee, the QOR is responsible for maintenance of the STR property and timely response to all inquiries from tenants and City officials. Any code or legal violations or revocation of the STR permit will be the responsibility of the permittee, who is the property owner. The City will not hold the QOR legally liable for the STR permit or STR unit, but if a QOR is designated, it is the QOR responsibility to inform the permittee of any code violations against the unit. The QOR must respond in-person to all emergencies at the STR property within 2 hours of a phone call by tenants or emergency personnel. The QOR must respond to all non-emergency inquiries as appropriate to the inquiry within 24 hours. Failure of a QOR to respond to a call or message from a tenant or the Community Development Director within 24 hours shall result in an enforcement violation subject to actions and penalties as described in Section 26.530.070. Only one QOR may be designated per STR permit, and the QOR must have a valid business license through the City of Aspen. The QOR must physically reside in Eagle, Pitkin, Garfield, or Gunnison Counties, or within the Roaring Fork River Drainage Area. The QOR’s physical address will be verified at time of application to ensure the QOR resides within a 2-hour driving distance from the STR address. Other contact information for the QOR, including first and last name, email address, day and nighttime phone numbers, business license information, and company affiliation, is required in the STR permit application. Failure to provide or update QOR contact information for an STR permit within 10 days of any change can result in an enforcement violation for the permittee. Should a permittee need to change or update the contact information for a QOR on an issued permit, they may do so by contacting the Community Development Department for instructions. Required QOR Information: First Name, Last Name, Physical Address, Phone Number, Email Address STR Property Information The following information will be required on every application as it pertains to the STR unit. Occupancy Limits Operational requirements include adherence to the occupancy limits for the STR unit as listed on the permit. Studio units shall have an occupancy of two plus one. All STR units with one or more bedrooms shall have an occupancy of two plus two per bedroom. Bunkrooms will count as two occupants per bedroom regardless of the number of pillows. Permittees and/or QORs must determine and list the number of allowed occupants on the application for each STR unit. Occupancy may be verified by City staff and failure to accurately list occupancy or exceeding the posted occupancy is a violation. Pitkin County Assessor Information Applicants will be required to list the Pitkin County Parcel ID number, Pitkin County owner’s name, number of bedrooms, and size of heated area of the residence. This information can be accessed via the Pitkin County Assessor’s Property Search website. Pitkin County Assessor’s Property Search Website: https://qpublic.schneidercorp.com/Application.aspx?AppID=1071&LayerID=26013&PageTypeID=2&PageID=10531 CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES13186 1414 Zoning Zoning requirements limit the location and number of STRs in the community. They prevent unreasonable burdens on services and impacts on neighborhoods posed by STRs. Special regulations of these uses are necessary to ensure that STRs are compatible with surrounding land uses and do not harm and alter the neighborhoods in which they are located. The applicant will be required to select the zone district in which the STR unit is located on the permit application. Applicants may use the STR Eligibility Map to determine their zone district. STRs are permitted in the following zones: R-3, AH, R/MF, R/MFA, R-6, R-15, R-15A, R-15B, R-30, RR, SCI, NC, MU, SKI, L, CL, CC, and C-1. STRs are prohibited in the A, C, OS, P, PUB, and WP Zone Districts, and no STR permits will be issued to properties in these zones. To determine which zone a property is located within, please visit the City’s STR Eligibility Map: https://experience.arcgis.com/experience/48e993d78c324291a543b591fb082972/ Required STR Property Information Supplemental Documents Permittees and/or QORs must submit all required supplemental documents with each STR permit application. Requirements vary by permit type and the required documents for the specific permit application shall be listed on the application form. All supplemental documents can be accessed via aspen.gov/strs. Prior to starting an application, the permittee and/or QOR should review these documents and gather all necessary information and signatures. Supplemental documents must be completed entirely and submitted as PDF file attachments with the application form. Blurry, incomplete, or incorrectly formatted files will delay the processing time for an application and may be cause for rejection of the application. STR-C Supplemental Documents HOA Compliance Affidavit Self-Inspection Checklist and Affidavit Public Notice Affidavit (required submission after permit approval, upon staff request) Renewal applications are not subject to noticing requirements. SECTION 4: APPLICATION INFORMATION Physical address Size of heated residence (square feet) Pitkin County parcel ID number Location of parking spaces Pitkin County owner name Location of fire extinguisher City of Aspen zone district Day of trash and recycle pickup Number of bedrooms Day of compost pickup Number of permitted occupants Listing numbers for 3rd party advertisements CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES187 STR-OO Supplemental Documents SECTION 4: APPLICATION INFORMATION HOA Compliance Affidavit Self-Inspection Checklist and Affidavit Public Notice Affidavit (required submission after permit approval, upon staff request) Renewal applications are not subject to noticing requirements. STR-LE Supplemental Documents Lodging Exempt affidavit Previous notices of code violations or complaints filed against the property Business Licensing In addition to completing and submitting an STR permit application and all required supplemental documents, business licenses are required for STR operations within the City of Aspen. Pursuant to its municipal code Section 23.32.020, the City of Aspen requires that any entity doing business within the City limits, either directly or indirectly, obtain a combined Sales Tax and Business License. This means that both permittees and QORs (if designated) are required to obtain a combined sales tax and business license from the City’s Finance Department. STR permits will not be issued until valid business licenses have been verified for permittee(s) and QOR listed on a permit. Business licenses can be applied for through the Finance Department website.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES15188 1616 SECTION 5: OPERATIONAL REQUIREMENTS Non-Transferability & STR-C Waitlist Non-Transferability All STR permits issued on or after October 1, 2022, are non-transferable. STR permits are granted only for the property address and permittee listed on the permit. If sale of a property with a permitted STR occurs, the permit will be revoked. Permits may not be transferred between properties. If a property is owned by a partnership, corporation, association, company, or other legal entity, a transfer of ownership shall have occurred if the permittee name on the permit application changes. STR-C Permit Waitlist STR-C permits are available in limited numbers in residential zone districts. Applicants wishing to obtain a new STR-C permit in a capped zone will be subject to a waitlist maintained by the City. To secure a position on the waitlist, the permittee and/or QOR must submit a complete, compliant STR-C permit application and pay applicable permitting fees. STR-C permits in capped zones are issued on a first come first served basis based on date and time the application was received. When a permittee and/or QOR has been notified that an STR-C permit is available, the permittee and/ or QOR has 14 days to respond to the City regarding the approved STR-C permit. If the permittee and/ or QOR fails to respond within 14 days, the waitlist spot will be forfeited, and the available STR-C permit will be granted to the next approved applicant on the waitlist. View the City of Aspen STR Waitlist at the following: aspen.gov/strs Neighborhood Noticing Why Is Noticing Required? Upon application for a new STR-OO or STR-C permit, permittees are subject to a neighborhood noticing period in accordance with the requirements in Section 26.304.060.E.3.b-c. Noticing requires that a permittee post signage at the STR property and mail notices to surrounding addresses that are within 300 feet of the unit. The intent of neighborhood noticing is to make residents aware of the applicant’s intention to use the subject property as a new STR. The noticing period gives neighbors an outlet through which to provide feedback about proposed STR uses at subject properties. Permit renewals do not require neighborhood noticing. When to Notice Applicants should expect to provide notice after a new STR-C or STR-OO application is submitted and before it is issued. Once an STR-C or STR-OO permit is received, City staff will review the application for completeness and compliance. If the review is approved, the applicant will be notified to initiate the neighborhood noticing period. At the close of the notice period, the applicant will provide proof of notice in the form of a signed Public Notice Affidavit including a photo and mailing list copy attached. Community Development staff will review neighborhood feedback and proof of notice prior to permit issuance.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES189 SECTION 5: OPERATIONAL REQUIREMENTS How to Notice When an applicant is notified to commence the neighborhood notice period at a property, the applicant will obtain a public notice document from the Community Development Department that the applicant must have professionally printed as a 24-inch by 36-inch poster made of waterproof materials. Lettering on the signage should measure at least 1-inch tall. The poster should be secured in an obvious location at the proposed STR property for a minimum of 15 days. The applicant must photograph the sign and will be required to attach the photo to the Public Notice Affidavit to be submitted at the end of the 15- day noticing period. Advertising signs, logos or realtor signs shall not be permitted on any STR-C and STR-OO licensed property unless the property is listed for sale. The applicant is also responsible for mailing or hand delivering the contents of the public notice to each address within 300 feet of their property. The mailing of notice must be completed during the 15-day noticing period in which the signage is also posted. The names and addresses of property owners can be obtained from the Pitkin County Community Development website using the “Create Mailing List” link and instructions below: 1. Click the “Create Mailing List” link at the left side of the screen. 2. Select “Search Parcels by Address ” and click the “Next” button. 3. Begin typing the STR property address in the box, select the STR address from the dropdown menu, and click the “Next” button. 4. Confirm the requested distance as 300 feet, and click the “Next” button. 5. Your mailing list will populate as both a PDF file and an Excel file. Pitkin County Maps & More ‘Create Mailing List’: https://maps.pitkincounty.com/gvh/?viewer=ComDev The addresses should be those on the current tax records of Pitkin County as they appeared no more than 60 days prior to the start date of the notice period. The applicant should photocopy the mailing labels before attaching to envelopes as a copy of the mailing list will need to be attached to the Public Notice Affidavit to be submitted at the end. At their discretion, the applicant may include additional notes, text, or graphics along with the required public notice. Proof of Notice Proof of noticing is required prior to permit issuance. After the applicant has finished the 15-day notice period, the applicant should complete the Public Notice Affidavit located at aspen.gov/strs, and attach the photograph of the noticing sign and mailing list used. Proof of notice shall be emailed to strs@aspen.gov with the STR property address in the subject line. Permits shall be approved, approved with conditions, or denied within 21 days following the closure of the notice period and submission of proof.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES17190 1818 SECTION 5: OPERATIONAL REQUIREMENTS Life Safety & In-unit Compliance Life Safety Requirements STR properties must be regularly maintained for the safety of all inhabitants. Permittees are required to submit a signed Self-Inspection Checklist and Affidavit with each STR permit application indicating basic maintenance intended to support life safety at the property has been performed. The affidavit includes language indicating that the subject property will comply with Municipal Code Title 8. If a permittee is unsure whether their property meets the code requirements in Municipal Code Title 8, they may hire a third-party home inspection agent at their own expense. In-Unit Messaging Requirements These requirements include the posting of permits, business licenses, and in-unit messaging documents such as the Good Neighbor Guide that will be made available to the permittee via their MuniREVS account upon issuance of a permit. Applicants are also required to produce a fire escape plan for their residence. STR regulations require that the Good Neighbor Guide, STR permit, associated business licenses, and in-unit messaging be displayed inside each unit for renters to access. The Good Neighbor Guide is available at aspen.gov/strs. Issued permits, business licenses, and the in-unit messaging document will be made available to the permittee upon issuance of an STR permit. The Self-Inspection Checklist and Affidavit, as well as the Good Neighbor Guide, can be accessed at: aspen.gov/strs Inspections By signing and submitting an STR permit application, and subsequently being granted a permit, the permittee or QOR shall consent to inspections of the property for the purpose of determining compliance with City codes, regulations and laws. Inspections will be made by City officials or their agents on an as-needed basis. If through a citizen complaint or audit it is determined by the Community Development Director or that an inspection of the STR property is warranted, the permittee or QOR will be made aware of the intent to inspect. No inspection will be made without first giving the permittee, or if applicable, the QOR, 48 hours’ notice of the inspection. Failure of the permittee or QOR to respond to a call from the Community Development Director within 24 hours will result in a notice of violation issued to the permittee.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES191 SECTION 6: ENFORCEMENT Complaints The City of Aspen actively enforces its STR regulations through inspections, citizen complaints, audits, and permitting. These measures ensure that STRs reinforce, not undermine, community policies and character. Active enforcement ensures that visitors who choose to stay in STRs are informed of the unique qualities of mountain living and enhance our community culture by being good visitors and acting as neighbors and community members during their stay. The STR permittee, and if applicable, QOR, play an essential role in supporting and advancing these policies and supporting the City’s enforcement activities. The City of Aspen takes enforcement of STRs seriously. If you have a complaint about an STR, permitted or un-permitted, submit your Complaint to the City’s Code Enforcement Division: aspen.gov/aspen311 Upon receipt of a complaint, Community Development staff will determine if the complaint is valid and if a potential violation of City’s codes, regulations, or laws has occurred. Valid complaints will first be referred to the permittee, or if applicable, the QOR for response and correction. Community Development staff will follow up with any complaining party, the permittee, or their QOR for compliance or resolution. The permittee or QOR must respond to all complaints or inquiries from occupants and City officials within 24 hours. Failure to respond within 24 hours shall result in an enforcement violation. All valid complaints will be recorded and kept on-file including the address, permittee name, permit number, business license number associated with the complaint, and the complainer’s name and contact information. The City is not responsible for complaints against an HOA, hotel, or condo-hotel’s own guidelines outside of the City’s code, rules, and regulations. Violations & Penalties What Constitutes a Violation? The following offenses are grounds for issuance of a notice of violation; this list is for illustrative purposes only and is not exhaustive or indicative of all violations that can occur: • Failure of a permittee or, if designated, QOR, to respond to a complaint or inquiry from an occupant within two hours. • Failure of a permittee or, if designated, QOR, to respond to a complaint or inquiry from City officials within 24 hours. • Failure to adhere to the total allowed occupancy at a unit. • Failure to adhere to rental night limits for an STR-OO permit. • Failure to provide or update QOR contact information with the Community Development Department within 10 days of a change. • Failure to comply with applicable life safety standards in Municipal Code Title 8. • Failure to display required in-unit messaging as described in operational requirements.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES19192 2020 SECTION 6: ENFORCEMENT • Failure to provide the Good Neighbor Guide to occupants. • Failure of an STR permittees to assist STR occupants in being ‘good neighbors’ by recognizing their obligation to following the rules and customs of the community as described in the Good Neighbor Guide. • Failure to comply with any of the requirements in Section 26.530 or in this STR Guidelines document. Any repeat complaint or unaddressed notice of violation of City codes, regulations or the requirements of any license issued under Section 26.530. shall be referred to either the Community Development Director, City of Aspen Police Department, or the City of Aspen Attorney’s Office and investigated, if appropriate. How can a permit be revoked? STR permits may be revoked by the Community Development Director for any of the following reasons: • Property sale or transfer of ownership. • Failure to renew a permit within 14 days of the expiration date. • Failure to remit permit fees, taxes, or pay fines within a single permit cycle. • Three notices of violation for a property within a single permit cycle. • Failure to rent the property during the term of the permit as evidenced by one year of zero tax filings. Any permittee that violates or allows another to violate any section of Section 26.530 may be subject to prosecution in Municipal Court and upon conviction subject to the fines and penalties set forth in Section 1.04.080. A first offense shall be punishable by a fine of no less than five-hundred dollars ($500). Each day of any violation of this section shall constitute a separate offense. Civil Remedies The City Attorney may institute injunctive, abatement, or other appropriate action to prevent, enjoin, abate or remove a violation of Section 26.530 when it occurs. The same right of action shall accrue to any property owner who may be especially damaged by violation of Section 26.530. An STR permit shall be automatically revoked by the Community Development Director upon the third conviction of a violation of Section 26.530 or the STR Program Guidelines by the permittee of the property subject to the permit within the one year. Until paid, any delinquent charges, assessments, or taxes made or levied by the City pursuant to this Title shall, as of recording, be a lien against the property on which the violation has been found to exist. If not paid within 30 days from the date of assessment, the City Clerk may certify any unpaid charges, assessments, or taxes to the Pitkin County Treasurer to be collected and paid over by the Pitkin County Treasurer in the same manner as taxes are authorized to be by statute together with a 10% penalty for costs of collection. Any lien placed against the property pursuant to Section 26.530 shall be recorded with the Pitkin County clerk and recorder.CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES193 SECTION 7: FINANCIAL INFORMATION Permittees and, if applicable, the QOR of a STR is required to maintain a City business license and must collect and remit all applicable tax directly to the City through the MuniRevs platform https://aspen. munirevs.com/ under the business license account for the STR property. The City of Aspen does not accept any third-party tax payments from platforms such as Airbnb or VRBO. Pursuant to Section 23.32.020, the City requires that any entity doing business within the City limits obtain a business license. The City of Aspen issues annual business licenses that are valid for the calendar year in which they are issued. Fees for the license are not prorated, regardless of when the license is issued, or the business started. MuniRevs is designed to assist STR owners and operators in routine tax filing process and will automatically send an emailed reminder to submit tax return and payment based on the individual’s filing schedule. Filing schedules can be monthly, quarterly or annually. Additionally, the software is structured to send delinquent notice(s) if a return and/or payment is not completed by the routine deadline which is the 20th day of the month following the end of the tax period, or the following business day if a holiday or weekend. For more information about business license requirements, visit: aspen.gov/1386 For more information about the process for tax remittance, visit: aspen.gov/1392 For general tax information, visit: aspen.gov/1389 CITY OF ASPEN SHORT-TERM RENTAL PROGRAM GUIDELINES21194 Ordinance #09, Series of 2022 Short-term Rentals Page 1 of 14 ORDINANCE NO. 09 (Series of 2022) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE VACATION RENTAL REGULATIONS IN THE CITY OF ASPEN LAND USE CODE. WHEREAS, the City of Aspen (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 (the “Charter”); and, WHEREAS, the City of Aspen currently regulates land uses within the City limits in accordance with Chapter 26.104 et seq. of the Aspen Municipal Code pursuant to its Home Rule Constitutional authority and the Local Government Land Use Control Enabling Act of 1974, as amended, §§29-20-101, et seq. C.R.S; and, WHEREAS, Aspen is a tourists destination, attracting tens of thousands of visitors a year in all seasons, visitors which require transient tourist accommodations and participate in and support Aspen’s tourist economy; and, WHEREAS, a variety of tourist accommodations at varied sizes, quality, and price points is essential to supporting the City’s tourist economy; and, WHEREAS, a tourist-based economy such as the City’s requires a sufficient number of employees to provide the services required to serve such an economy. Without adequate workforce housing, a tourist-based economy cannot thrive; and, WHEREAS, to allow for a sufficient number of employees to be hired to provide the services necessary to sustain a tourist-based economy there must be an adequate supply of workforce housing; and, WHEREAS, historically, the long-term rental of residential property, or at least the long-term rental of space within a residential property, has been an important means for providing workforce housing within the City; and, WHEREAS, in addition to the required workforce housing, it is also essential to the continued vitality of the City’s economy that adequate short-term housing be made available to the many tourists who visit the City each year; and, WHEREAS, short-term rentals are extremely valuable to the City’s economy and exist in various locations throughout the City; and, WHEREAS, the operation of a short-term rental in the City is the operation of a business; and, 195 Ordinance #09, Series of 2022 Short-term Rentals Page 2 of 14 WHEREAS, without regulations and limitations on their operation and extent, short- term rentals also have adverse impacts on the character of residential neighborhoods and the availability of long-term housing options; and, WHEREAS, tourists visitation, the operation of tourist accommodations, the goods and services demanded by tourists, and the transportation systems required to move tourist to and throughout the community have environmental impacts, measured as Greenhouse Gas Emissions; and, WHEREAS, in keeping with the goal of the City’s Comprehensive Plan to preserve small town character while maintaining livability, the City desires to minimize the negative impacts of short-term rentals on Aspen’s neighborhoods, housing supply, economy, and environment; and, WHEREAS, during the moratorium, adopted Ordinance No. 26, Series of 2021, City staff engaged in a robust public engagement process which included two online surveys regarding community perception of short-term rentals and feelings toward specific regulations; an open house at City Hall which included story boards and an opportunity for feedback; a public work session to discuss the online survey results and expand further into certain topic areas; and research into how other municipalities in Colorado regulate short-term rentals; and, WHEREAS, the Planning and Zoning Commission received and considered the information gathered through the public engagement process, as well as comments from the public, during a Meeting held on May 17th, 2022, and voted 4 to 0 to recommend approval of Ordinance #09, Series of 2022 to City Council; and, WHEREAS, on December 12, 2021, City Council adopted Ordinance No. 26, Series of 2021 enacting a temporary moratorium in the issuance of new short-term rental permits until September 30, 2022; and, WHEREAS, at a regular meeting on May 24, 2022, City Council by a 5 to 0 vote, approved Ordinance #09, Series of 2022, approving at First Reading a Code Amendment to Vacation Rental Regulations; and, WHEREAS, at a regular meeting and properly noticed public hearing on June 28th, City Council by a 5 to 0 vote, approved Ordinance #09, Series of 2022 on Second Reading; and, WHEREAS, the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety, and welfare; and, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1. Section 26.104.100 “Definitions shall” be amended as follows: 196 Ordinance #09, Series of 2022 Short-term Rentals Page 3 of 14 Condo-hotel. A condo-hotel is a lodging property which meets the definition of Lodge in 26.104.110, Use Categories and in which ownership of individual lodge units has been condominiumized in accordance with The Colorado Condominium Ownership Act, C.R.S. § 38-33- 101, et. seq. Hotel. See definition of Lodge, 26.104.110 Use Categories. Motel. See definition of Lodge, 26.104.110 Use Categories. Natural Person. A living, individual human being, as distinct from a “legal person” for the purpose of assigning certain legal rights. Owner Occupied. A residential property that serves as the primary residence of the title owner of the property. Owner Occupant. For the purposes of permitting specific types of short-term rentals, owner- occupant is a natural person whose principal residence is the City of Aspen residential property or unit for which a short-term rental permit is sought. Pillow. A unit of measure for assessing affordable housing generation and occupancy of lodge rooms/units per bedroom in a short-term rental. Each lodge and short-term rental unit shall be considered to have two pillows for each bedroom. For calculating occupancy in short-term rentals, sleeper sofas, murphy beds, and similar sleeping accommodations shall be considered as two pillows. Studio units shall be considered to have two pillows. Primary residence. The permanent residential address, as demonstrated by acceptable legal documentation described in this title, of an Owner- Occupied Short-term Rental Permit holder. Qualified Owner’s Representative. A natural person who is legally designated on the permit application by the permittee to apply for and maintain compliance with a City of Aspen Short-term Rental Permit. For each short-term rental property, there may be only one qualified owner’s representative. All qualified owner’s representatives must have a business license through the City of Aspen. Short-term Rental (STR). The use or occupancy of a residential property or dwelling unit, in whole or in part, by the general public for a fee, primarily for tourist accommodations, and for a period of less than 30 days. Timeshare, hotel, motel, and bed and breakfast uses are not short-term rental uses. Vacation Rental. See short-term rental. Section 2. Valid 2021-2022 Permits. 2021 Vacation Rental Permits (2021 VRP) issued pursuant to Section 26.575.020 “Vacation Rentals” on or prior to December 8th, 2021, shall be deemed to be valid 2022 STR Permits and shall be valid until December 31, 2022. Valid 2022 permits may be renewed annually thereafter, subject to the terms and conditions set forth in this chapter until they are abandoned or revoked in accordance with this chapter. Valid 2022 permits which are 197 Ordinance #09, Series of 2022 Short-term Rentals Page 4 of 14 renewed after December 31, 2022, may not be transferred to owners or properties other than that listed on the 2022 STR permit. Upon renewal, 2022 STR permits issued to a corporation, partnership, association, or company must update the permit application information to comply with the requirements of Chapter 26.530. The number of Short-term Rental-Classic (STR-C) permits as of January 1, 2023, may exceed the cap for zone districts, as defined in Chapter 26.530, until such time as they are revoked, abandoned, or otherwise eliminated. Owner- occupied Short-term Rental Permits and Lodging Exempt Short-term Rental Permits may be issued with the requirements of Chapter 26.530 beginning October 1, 2022. Section 3. Section 26.575.220 “Vacation Rentals” shall be deleted in its entirety. Section 4. Chapter 26.530 “Reserved” shall be deleted in its entirety and replaced with the following: Chapter 26.530 Short-term Rental Regulations Sec. 26.530.010 Purpose Sec. 26.530.020 Applicability Sec. 26.530.030 Permitting Requirements Sec. 26.530.040 Permitting Procedures and Standards Sec. 26.530.050 Occupancy and Operational Standards Sec. 26.530.060 Enforcement Sec. 26.530.070 Fees Sec. 26.530.080 Appeals 26.530.010 Purpose The purpose of this Chapter is to regulate short-term rentals (STRs) as a land use within the City of Aspen. STRs are an important component of the City’s lodging bed base, support a vibrant tourist economy, and provide real property owners with STR permits significant financial benefit. STRs influence property value and occupancy patterns of residential dwelling units. STRs influence neighborhood character by introducing commercial lodging uses in residential neighborhoods. STRs require services and infrastructure to operate. STRs further reduce the potential availability of long-term rental housing to support the local economy and community. STRs require regulation as a distinct land use to ensure the health, safety, peace, and welfare of the community through the application of zoning police powers. The following regulations support the operation of STRs balanced with community policies related to housing, development, growth management, and a sustainable economy as described in the Aspen Area Community Plan. 26.530.020 Applicability A. This chapter applies to all STRs in the City of Aspen. STRs are required to obtain a permit in accordance with their type and operation as defined in this section. STRs operating without a permit are subject to enforcement as defined in Section 26.530.060 Enforcement. 198 Ordinance #09, Series of 2022 Short-term Rentals Page 5 of 14 B. It shall be unlawful for any person, whether a principal or agent, clerk, or employee, either for him or herself, or for any other person for anybody, corporation or otherwise, to lease or operate an STR without first obtaining an STR permit in accordance with the provisions and procedures of this section. 26.530.030 Permitting Requirements A. Permits. Any property rented as an STR shall require a permit to operate. Permits shall be approved, approved with conditions, or denied by the Community Development Director based on the following criteria: 1) Permittee. Permits shall only be issued in the name of one natural person who has an ownership interest in the property for which the permit is issued (“Permittee”). 2) Permit Number. STR permits are issued a unique permit number. That permit number shall be clearly displayed in all advertising and listings of the STR, including but not limited to all digital and print advertising. The permit number must be listed in the STR, along with permittee and/or qualified owner’s representative and emergency contact information as part of the in-unit Community Messaging Program described in the STR Program Guidelines. 3) Permit Application Contents. The following information is required for STR permit applications: the owner(s) of the property, the name and contact information of the proposed permittee; if title to the subject property is held by a corporation, partnership, association, or company, the name and contact information of any officer, director or stockholder holding ten percent (10%) or more of the interests in the corporation, partnership, association, or company; the property address, Pitkin County parcel identification number; Pitkin County owner name; number of bedrooms and pillows in the unit in its largest configuration; size of heated area of the STR residence, and all previous notices of code violations or complaints filed against the property. 4) Licensing. STRs are required to maintain a City of Aspen Business License and are required to remit lodging and sales tax in accordance with Municipal Code regulations and Finance department policies. The STR Program Guidelines include details about licensing and tax compliance standards and procedures. 5) Non-Transferability. Commencing October 1, 2022, STR permits shall be granted only for the property for which it is issued and solely to the permittee to whom it is issued. The permit shall not be transferable to any other person, legal entity, or residential address. If the property is owned by a partnership, corporation, association or company, a transfer shall be deemed to occur if the permittee transfers his or her interest in the property to a third-party individual or entity or if more than ten percent (10%) of the partnership, corporation, association, or company is transferred to a third-party individual or entity, even if the permittee retains an ownership interest in the property. Upon such transfer of ownership, the permit shall be deemed terminated and revoked and the new 199 Ordinance #09, Series of 2022 Short-term Rentals Page 6 of 14 owner of the property shall be required to apply for a new STR permit if it wishes to continue the use of the property as a vacation rental. The STR permit shall include a non- transferability clause and notice that the permit shall be deemed terminated and revoked automatically upon the sale or change of ownership of the property for which a permit has been issued, as described herein. B. Permit Types. STRs shall be eligible for one of three permit types: Short-term Rental Classic, Owner-Occupied Short-term Rental, or Lodging Exempt Short-term Rental. The ability to obtain an STR permit is conditioned upon the permittees consent of the eligibility, requirements, and standards for each permit type as follows: 1) Short-term Rental Classic (STR-C) – this permit is issued only to residential units located in eligible zones and the approved use of which is not a Lodge use. (Condo-hotel properties must apply for a Lodging-Exempt STR permit.) a. STR-C permits shall be renewed annually and are assessed an annual permit fee in accordance with Section 26.530.070 Fees. b. STR-C permits are subject to the life-safety standards and the operational standards described in this chapter and the STR Program Guidelines. c. There is no annual limit on the number of nights an STR-C permittee may operate the STR unit. Bedrooms, lock-offs, or portions of the residential unit, in addition to the whole residential unit, may be rented. Occupancy for the unit is limited by the standards described in Section 26.530.050. 2) Owner-occupied Short-term Rental (STR-OO) – this permit is issued only to owner- occupied residential units, where the property is the primary residence of the permittee. Part 700 of this Title describes the zone districts where STRs are a permitted use. a. STR-OO rental permits shall be renewed annually and are assessed an annual permit fee in accordance with Section 26.530.070 Fees. b. STR-OO are subject to the life-safety standards for STRs described in this chapter and the Program Guidelines, and who must have two (2) of the following valid documents indicating that the STR is the applicant’s primary residence: i. valid Colorado driver’s license; ii. valid motor vehicle registration; iii. voter registration; iv. Federal or state tax return; or, v. other legal documentation deemed sufficient by the Community Development Director which is pertinent toward establishing principal residence. 3) Lodging Exempt Short-term Rental (STR-LE) – Lodges and condo-hotels which meet the definition of Lodge are eligible for STR-LE permits. a. For eligible properties, only one permit is required for all units under management. b. In addition to the limitations of the definition of Lodge and/or Condo- hotel, Lodging Exempt eligible properties must offer STR units under a 200 Ordinance #09, Series of 2022 Short-term Rentals Page 7 of 14 unified brand and marketing model where individual ownership of units is secondary to the central brand of the property. c. Lodging Exempt permittees must submit an affidavit attesting to their eligibility. d. STR-LE permits must be renewed annually and are assessed an annual permit fee in accordance with Section 26.530.070 Fees. To ensure ongoing eligibility for the STR-LE permit, permittees are subject to the Lodging Occupancy Auditing regulations in Section 26.575.210. C. Zoning Limitations. STR-C permits are limited by number in residential zone districts. Refer to Part 700 of this title for permitted uses by zone to assess where STR-Cs are permitted. In zones where STR is not a permitted use, it is a prohibited use. 1) STR-C permits are limited by number in specific zone districts as follows: a. RR: 2 permits; b. R-3: 1 permit; c. R-6: 81 permits; d. R-15: 47 permits; e. R-15A: 8 permits; f. R-15B: 12 permits; g. R-30: 1 permit; h. R/MF: 190 permits; i. R/MFA: 12 permits; j. AH: 9 permits; k. MU: 39 permits; l. NC: 1 permit; m. SCI: 2 permits; n. SKI: 2 permits. 2) There is no limit to the number of STR-C permits in the following zone districts: Commercial (C-1), Commercial Core (CC), Lodge (L), Commercial Lodge (CL), Lodge Overlay (LP), Lodge Preservation Overlay (LO). 3) STR-OO are not limited by number in any allowable zone district. Refer to Part 700 of this title for zone districts where STR is a permitted use. 4) STR-LE are not limited by number in any allowable zone district. Refer to Part 700 of this title for zone districts where STR is a permitted or prohibited use. 26.530.040 Permit Procedures and Standards. Prior to the issuance of an STR permit, the permit application will be reviewed for compliance with the following standards. A. Zoning Compliance. All STR permits must comply with zoning regulations for the zone district in which they are located. STR permit applications shall include the Parcel Identification Number and residential 201 Ordinance #09, Series of 2022 Short-term Rentals Page 8 of 14 address including unit number for the property to ensure compliance with underlying zoning. Zone district STR regulations, including permitted uses and cap limitations, may change over time per City Council action. Possession of an STR permit does not supersede compliance with zone district STR regulations. B. Life-safety Compliance and Inspection. 1) Required Noticing. All new STR applicants shall comply with neighborhood noticing requirements per Section 26.304.060.E.3.b-c, Manner of Notice. 2) Inspections. By signing and submitting an STR permit application, and subsequently being granted a permit, the owner(s) of the property shall consent to inspections of the property by City of Aspen personnel and their agents for the purpose of determining compliance with City Codes, Regulations and Laws. No inspection will be made without first giving the permittee and, if applicable, the qualified owner’s representative, 48 hours’ notice of the inspection. 3) Life-Safety. STRs are required to comply with all applicable life-safety standards in Municipal Code Title 8 and the STR Program Guidelines, as amended from time to time. Life-safety standards including: fire suppression, occupancy limitations, mechanical codes, emergency contacts and procedures, and inspections. C. Qualified Owner’s Representative. Permittees who cannot meet requirement for regulatory compliance, in-person service, emergency response and other regulations in this title may designate a qualified owner’s representative. A qualified owner’s representative shall be a natural person residing in the Roaring Fork River Drainage area situated in Eagle, Pitkin, Garfield or Gunnison Counties, or within the Colorado River Drainage area from and including the unincorporated No Name area to and including Rifle. The qualified owner’s representative is designated by the permittee who is the property owner as the point of contact for the permitted STR. For permittees that designate a qualified owner’s representative, the qualified owner’s representative shall be responsible for responding to tenant and City inquiries, complaints, enforcement actions, and other on-site needs. 1) If a qualified owner’s representative is designated for an STR, the qualified owner’s representative must have a City of Aspen business license. The qualified owner’s representative shall be listed on the STR permit for the property including the qualified owner’s representative’s name, entity or company name, telephone number, email address, and physical address. 2) STR permittees who designate a qualified owner’s representative are liable for compliance with applicable Land Use Code and Municipal Code regulations. The qualified owner’s representative is not legally liable for violations of this section or compliance with applicable Municipal Code regulations but is responsible for notifying the permittee when a violation has occurred. 3) The name, address, and telephone number(s) of the qualified owner’s representative, as shown on the STR permit, shall be made available to the Community Development 202 Ordinance #09, Series of 2022 Short-term Rentals Page 9 of 14 Department, the Aspen Police Department, and the Aspen Fire Protection District. Any change to the qualified owner’s representative or permittees’ contact information shall be promptly furnished to the City of Aspen via a revised STR permit application within ten (10) days. Failure of the permittee to provide or update the qualified owner’s representative contact information to the City shall constitute an enforcement violation subject to actions and penalties as described in Section 26.530.070 Enforcement. 4) The permittee, or if designated, the qualified owner’s representative, shall be available 24 hours a day, year-round to ensure that the property is maintained and operated as required by Land Use Code standards and the STR Program Guidelines. The permittee, or if designated, the qualified owner’s representative, shall respond to service or compliance inquiries from occupants and City officials, and shall be available to be at the property within two (2) hours in an emergency. Failure of the permittee, or if designated, the qualified owner’s representative, to respond to a call from a tenant or the Community Development Director within 24 hours shall result in an enforcement violation subject to actions and penalties as described in Section 26.530.070 Enforcement against the permittee. D. Permit Application, Fees, Issuance, Renewal, Revocation, and Abandonment. 1) Application. Permit applications shall be received and processed on a first come, first served basis. The Community Development Director shall deem applications complete based on the requirements of this Chapter and the standards in the STR Program Guidelines. Only complete STR permit applications shall be accepted and reviewed. 2) Fee Payment. Permit fees shall be remitted at the time of permit application and cover the cost of processing the application. Application fees are nonrefundable. 3) Neighborhood Noticing. Upon application for a new STR-C or STR-OO permit, the applicant shall provide neighborhood noticing in accordance with Section 26.304.060.E.3.b- c. Manner of Notice. Permit renewals do not require neighborhood noticing. Permits shall be approved, approved with conditions, or denied following the notice period. STR-LE are exempt from this provision. 4) HOA Compliance. Permit applications for residential properties which are in a Homeowners Association (HOA) must include HOA approval for the applicant to operate an STR in the form of a signed letter, including telephone and email contact information for the HOA, with the permit application. 5) Issuance. Permits shall be approved, approved with conditions, or denied within 21 working days of the closure of the notice period described above. The Community Development Director may issue permits with conditions based on review of the permit application and public comment. The review and issuance period for individual permit applications may be extended at the direction of the Community Development Director. 6) Waitlist. Once the permit limit is reached for each zone district, applicants will be placed on a waitlist for the next available permit in the order in which the application was received. 203 Ordinance #09, Series of 2022 Short-term Rentals Page 10 of 14 A waitlist applicant shall be a natural person. The residential address included in the waitlist application must match the residential address for which the subsequent permit is issued. Applicants who sell the property for which the permit is sought shall be removed from the waitlist. As permits become available, waitlist applications shall be reviewed and approved, approved with conditions, or denied. If the property has been found in violation of this Chapter during the waitlist period, the application shall be denied. 7) Renewal. STR permits shall be renewed annually in accordance with the procedures in the STR Program Guidelines. Failure to renew a permit within fourteen days (14) of the permit expiration date shall result in the abandonment of the permit. 8) Tax Filing. STRs must be occupied by a short-term renter a minimum of once per year, as shown in tax filings to be eligible for renewal. Permits with one year of zero tax filings from the date of permit issuance or renewal will be considered abandoned and be processed in accordance with the standards in this chapter. 9) Abandonment. STR-C and STR-OO permits shall be valid for one year from the date of issuance and shall be renewed annually. Failure to renew a permit in accordance with the STR Program Guidelines will result in the abandonment of the permit. STR permits may be abandoned by permittees at any time by notifying the Community Development Director of the intent to abandon the permit. Abandoned permits will be made available to the next applicant on a first-come, first-served basis or the next applicant on the waitlist for that zone district in accordance with the STR Program Guidelines. STR-LE are exempt from this provision. 10) Revocation. STR permits may be revoked by the Community Development Director for any of the following reasons: three violations of the requirements of this chapter and applicable Municipal Code standards as described in the STR Program Guidelines, failure to rent the property during the term of the permit, failure to pay STR taxes and fees, or violations of the requirements of this section. 26.530.050 Occupancy and Operational Standards. Prior to the issuance of an STR permit, the permit application will be reviewed for compliance with the following standards. A. Occupancy Limits and Unit Size. STRs are limited to a total occupancy of two occupants per bedroom plus two additional occupants, studios are limited to a total occupancy of two occupants plus one additional occupant. Permit applications are required to list the number of bedrooms in the unit at its largest configuration. STRs may be inspected for accuracy of bedroom count on the permit application and for compliance with these occupancy requirements. For the purpose of establishing unit occupancy, a studio shall have an occupancy of two occupants plus one additional occupant. Occupancy for each STR shall be included in all STR advertising, the in- unit messaging, and permit on display in each permitted STR. Bedrooms, lock-offs, or portions of the residential unit, in addition to the whole residential unit, may be rented. 204 Ordinance #09, Series of 2022 Short-term Rentals Page 11 of 14 B. Annual Rental Night Limits. STR-OO are limited to 120 short-term rental nights per year from the date of permit issuance. There is no annual limit on the number of nights per year an STR-C can be rented. There is no annual limit on the number of nights per year an STR-LE can be rented. C. Good Neighbor Guide. STRs are required to operate in accordance with all applicable Municipal Code regulations protecting the health, safety, and peace of the community and supporting the maintenance of community character and values. STR owners and permittees are required to assist STR occupants in being ‘good neighbors’ by recognizing their obligation to following the rules and customs of the community. To support these community goals, the Community Development Department maintains the Short-term Rental Program Guidelines, Good Neighbor Guide, and collaborates with non-governmental organizations to promote good neighbor behavior by visitors. 1) STR-C and STR-OO permittees, and if designated, their qualified owner’s representatives must comply with the policies described in the City of Aspen Good Neighbor Guide and provide that information at all times to occupants of the unit. 2) In-unit messaging is essential to assisting STR occupants in supporting the City’s good neighbor policies, ensuring STRs in neighborhoods support community character, and assisting in the promotion of Aspen’s community character. The following notices shall be posted in a conspicuous location inside the rental unit: i. A copy of the STR-C or STR-OO permit, ii. STR license and business number, iii. The name, address, and telephone number(s) of the permittee or qualified owner’s representative, iv. A statement which reads: Occupants shall comply with the City’s Noise Ordinance, v. The location of the required parking spaces, vi. Wildlife protection policy, vii. The location of the fire extinguisher, viii. Information on the trash, recycling, and composting programs including: a. Solid waste pickup schedules; b. Guidelines on living with wildlife and instructions for operating wildlife containers; and c. A notice that trash and recycling containers must be stored indoors except between 6:00 AM and 6:00 PM on the day of scheduled trash or recycling pickup, where they may be placed at the curbside or in alleys. ix. City of Aspen emergency services information and contact information, x. The City of Aspen’s Good Neighbor Guide D. Adoption of and Compliance with STR Program Guidelines. The City Council hereby adopts the Short-term Rental Program Guidelines. The Community Development Department shall keep on file and make available to STR permittees, and if applicable, qualified owner’s representatives. These guidelines set forth the standards, procedures, and supplemental information necessary for the operation of an STR within the City of Aspen. The 205 Ordinance #09, Series of 2022 Short-term Rentals Page 12 of 14 Community Development Director may use the guidelines as a basis for enforcement actions in accordance with the requirements of this Chapter. The Guidelines may be updated, amended, and expanded from time to time by City Council Resolution. 26.530.060 Enforcement. The City of Aspen actively enforces its STR regulations through inspections, citizen complaints, audits, and permitting. These measures ensure that STRs reinforce, not undermine, community policies and character. Active enforcement ensures that visitors who choose to stay in STRs are informed of the unique qualities of mountain living and enhance our community culture by being good visitors and acting as neighbors and community members during their stay. STR permittee, and if applicable, qualified owner’s representative, play an essential role in supporting and advancing these policies and supporting the City’s enforcement activities. A. Complaints. Any valid complaint received regarding the STR property will first be referred to the permittee, and if applicable, qualified owner’s representative for response and correction. The Community Development Director will follow up with any complaining party, the permittee, and if applicable, qualified owner’s representative, for compliance or resolution. The permittee or qualified owner’s representative must respond to all complaints or inquiries from City officials within 24 hours and occupant complaints within two (2) hours. The City of Aspen is not responsible for complaints against a HOA, hotel, or condo-hotel’s own guidelines outside of the City’s code, rules and regulations. Failure to respond within 24 hours shall result in a notice of violation and demand to cure. All valid complaints will be recorded and kept on-file including the address, permittee, permit number, business license number associated with the complaint, and the complainer’s name and contact information. B. Enforcement and Penalties. Upon receipt of a compliant, the Community Development Department shall investigate and if it is determined there are grounds to believe a violation of this Chapter or any STR rules and regulations may have occurred, the Community Development Director may issue an Administrative Notice of Violation to the permittee. The Director shall revoke the STR permit of any permittee who receives three (3) Administrative Notices of Violation within the one (1) year permit cycle, effective upon mailing notice to the permittee’s address on file. The permittee may appeal the decision to revoke the STR permit by providing notice of appeal to the Community Development Director within fourteen (14) days of the date of the decision to revoke the permit. The Administrative Hearing Officer shall hear appeals brought pursuant to this section (B). Appeals shall be governed by the procedures set forth in Section 26.316.030. 1) Penalty. Any permittee that violates or allows another to violate any section of this Title shall be subject to prosecution in Municipal Court and upon conviction subject to the fines and penalties set forth in Section 1.04.080. A first offense shall be punishable by a fine of no less than five-hundred dollars ($500). Each day of any violation of this section shall constitute a separate offense. 2) Civil Remedies. 206 Ordinance #09, Series of 2022 Short-term Rentals Page 13 of 14 a. The City Attorney may institute injunctive, abatement, or other appropriate action to prevent, enjoin, abate or remove a violation of this Title when it occurs. The same right of action shall accrue to any property owner who may be especially damaged by violation of this Title. b. In addition to the penalties and remedies set forth herein, an STR permit shall be automatically revoked by the Community Development Director upon the third conviction of a violation of this Title by the permittee of the property subject to the permit within the one (1) year. c. Until paid, any delinquent charges, assessments, or taxes made or levied by the City pursuant to this Title shall, as of recording, be a lien against the property on which the violation has been found to exist. If not paid within thirty (30) days from the date of assessment, the City Clerk may certify any unpaid charges, assessments, or taxes to the Pitkin County Treasurer to be collected and paid over by the Pitkin County Treasurer in the same manner as taxes are authorized to be by statute together with a ten percent penalty for costs of collection. Any lien placed against the property pursuant to this Chapter shall be recorded with the Pitkin County clerk and recorder. 26.530.070 Fees. STR permits are assessed an annual fee per unit, remitted at the time of permit application, in accordance with the following table. Annual Administrative Fee STR-Classic: $394 STR-Owner-occupied: $394 STR-Lodging Exempt: $148/unit Table 1: Fee Schedule 26.530.080 Appeals. Permittees may appeal decisions made by the Community Development Director in the enforcement of this chapter. Appeals will be heard by the Administrative Hearing Officer in accordance with Section 26.316.020.D. Appeals shall be processed in accordance with Section 26.316.030. INTRODUCED AND READ, as provided by law, by the City Council of the City of Aspen on the 24th day of May 2022. ATTEST: _____________________________ ____________________________ Nicole Henning, City Clerk Torre, Mayor 207 Ordinance #09, Series of 2022 Short-term Rentals Page 14 of 14 FINALLY, adopted, passed and approved this 28th day of June 2022. ATTEST: _____________________________ ____________________________ Nicole Henning, City Clerk Torre, Mayor APPROVED AS TO FORM: _____________________________ James R. True, City Attorney 208