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HomeMy WebLinkAboutagenda.council.regular.20141027 CITY COUNCIL AGENDA October 27, 2014 5:00 PM I. Call to Order II. Roll Call III. Scheduled Public Appearances a) Proclamation - Community Planning Month IV. Citizens Comments & Petitions (Time for any citizen to address Council on issues NOT on the agenda. Please limit your comments to 3 minutes) V. Special Orders of the Day a) Councilmembers' and Mayor's Comments b) Agenda Deletions and Additions c) City Manager's Comments d) Board Reports VI. Consent Calendar (These matters may be adopted together by a single motion) a) Resolution #131, 2014-- Contract - Van Replacement b) Board Appointments c) Minutes - October 13, 2014 VII. First Reading of Ordinances VIII. Public Hearings a) Ordinance #33, 2014 - TDR Code Amendment b) Ordinance #31, 2014 - Double Basements Code Amendment c) Ordinance #32, 2014 - Authorizing the Issuance of 2014 Park and Recreation Bonds IX. Action Items a) Executive Session - 402(4) (a), (b) and (e): Discussions with counsel re litigation and negotiations involving litigation and the purchase, acquisition , lease, transfer, or sale of any real, personal or other property interest. X. Adjournment Next Regular Meeting Not Scheduled COUNCIL’S ADOPTED GUIDELINES • Invite the Community to Participate with Us in Solution-Making • Tone and Tenor Matter • Remember Where We’re Living and Why We’re Here COUNCIL SCHEDULES A 15 MINUTE DINNER BREAK APPROXIMATELY 7 P.M. Page 1 of 2 MEMORANDUM TO: Mayor and City Council FROM: Jerry Nye, Superintendent of Streets THRU: Randy Ready, Asst. City Manager DATE: October 9, 2014 RE: Resolution No. 131, Series of 2014—GMC Van Vehicle Replacement Contract REQUEST OF COUNCIL: Staff recommends approval of contract 2014-137 for the fleet replacement of one all-wheel drive cargo van for the Parking Department. PREVIOUS COUNCIL ACTION: This van was purchased in 2010 as part of the fleet replacement program at that time. It was scheduled for replacement in 2017 before it was involved in accident at no fault of the city’s and declared a total loss. BACKGROUND: This purchase is the result of sole source purchase from Mountain Chevrolet. Chevrolet is the only manufacturer that currently makes all-wheel drive cargo vans. Staff called the state bid vendor that holds the bid for the all-wheel drive cargo van and was told that they did not have any more all-wheel drive cargo vans and Chevrolet was going to discontinue the all- wheel vans in 2014. Staff called other dealers on the Front Range with no luck. Staff found that Mountain Chevrolet was down to its last two vans. One of these available vans already comes with the shelving units installed inside the van, along with the side swing-out doors that are needed for ease of opening and closing, a back-up camera for increased safety, and a roof rack to assist with carrying signs. While the available vehicle’s specifications are not exactly the same as those for the vehicle on the state bid list, the purchase price is within $1,400 of the state bid price. The new vehicle will be put on a 5-year 60,000 mile replacement cycle and will be reassessed for replacement at that time. DISCUSSION: The Parking Department currently has one 2010 GMC all-wheel drive cargo van. This van was involved in an accident at the other driver’s fault and the van was declared a total loss. Since then the city has been using a rental van to carry on with daily duties. This new van will be the same all-wheel drive cargo van as the previous van. It will be equipped with storage shelves in the rear of the van. P1 VI.a Page 2 of 2 FINANCIAL/BUDGET IMPACTS: The contract price for the new van will be $32,918. The City will be receiving $18,000 from our insurance provider, the Colorado Intergovernmental Risk Sharing Agency (CIRSA) for the total loss of the depreciated 2010 GMC van. Funds for this replacement purchase are proposed to come from Parking Departmental savings. ENVIRONMENTAL IMPACTS: This van will be the same size as the previous van and since it is four years newer it will have updated vehicle emissions. Fuel economy will be about the same as the previous van. RECOMMENDED ACTION: Staff recommends council approval of contract 2014-137 for the replacement of the Chevrolet All-Wheel Drive cargo van. PROPOSED MOTION: “I move to approve Resolution # 131 of 2014 on the consent calendar of Monday, October 27, 2014.” CITY MANAGER COMMENTS: ATTACHMENTS: P2 VI.a RESOLUTION # 131 (Series of 2014) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN AND MOUNTAN CHEVROLET 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 2014 Chevrolet AWD Cargo Van, between the City of Aspen and Mountain Chevrolet, 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 2014 Chevrolet AWD Cargo Van, between the City of Aspen and Mountain Chevrolet, 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 27 th day of October 2014. Steven Skadron, Mayor I, Linda Manning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held, October 27, 2014. Linda Manning, City Clerk P3 VI.a P 4 V I . a P 5 V I . a P 6 V I . a P 7 V I . a P 8 V I . a P 9 V I . a P 1 0 V I . a P 1 1 V I . a MEMORANDUM TO: Mayor and City Council FROM: Linda Manning, City Clerk DATE: October 21, 2014 RE: Board Appointments By approving the consent calendar, Council is making the following appointments: Next Generation Advisory Commission Duncan Clauss – regular member Liquor License Authority Philip Golden - alternate P12 VI.b Regular Meeting Aspen City Council October 13, 2014 1 SCHEDULED PUBLIC APPEARANCES .................................................................................................. 2 CITIZEN COMMENTS AND PETITION ................................................................................................... 2 COUNCILMEMBER COMMENTS ............................................................................................................ 2 BOARD REPORTS ...................................................................................................................................... 3 CONSENT CALENDAR ............................................................................................................................. 3 Resolution #114, Series of 2014 – Stormwater Cleaning Services ................................................... 5 Resolution #129, Series of 2014 – Mill Street Bridge Repair Project Construction Contract Approval ................................................................................................................................................... 5 Resolution #123, Series of 2014 – Agreement with Twin Lakes Company Regarding Mitigation of Impacts Associated with Exercise of Junior Water Rights ....................................................................... 5 Resolution #124, Series of 2014 – Manned Visual Inspection of Concrete Pipe in Raw Water System ....................................................................................................................................................... 5 Resolution #126, Series of 2014 – Smuggler/Hunter Surface Drainage Master Plan – Change Order Approval ......................................................................................................................................... 5 Resolution #128, Series of 2014 – Toro utility Vehicle Contract Approval ..................................... 5 Resolution #125, Series of 2014 – Burlingame Ranch Phase II Landscape Maintenance Contract . 5 Minutes – September 22, 2014 ......................................................................................................... 5 Resolution #130, Series of 2014 – Burlingame Phase II Construction Contract Change Orders ..... 5 Ordinance #34, Series of 2014 – 1235 Mountain View Drive (Messiah Lutheran Church) Ordinance Amendment ................................................................................................................................................... 5 Ordinance #32, Series of 2014 – Authorizing the Issuance of 2014 Parks and Recreation Bonds ............... 6 Ordinance #33, Series of 2014 – code Amendment: Transferable Development Right Certificates (TDRs) ...................................................................................................................................................................... 8 Ordinance #28, Series of 2014 – 1006 E. Cooper Avenue – Transferable Development Rights ................. 9 Resolution #127, Series of 2014 – Policy Resolution – Double Basement Code Amendment .................. 10 Ordinance #31, Series of 2014 – Code Amendment Double Basements .................................................... 12 P13 VI.c Regular Meeting Aspen City Council October 13, 2014 2 Mayor Skadron called the meeting to order at 5:00 p.m. with Councilmembers Frisch, Mullins, Daily and Romero present. SCHEDULED PUBLIC APPEARANCES Janis Vos Caudill, Pitkin county clerk and recorder, told the Council Aspen voters with zip codes 81611 and 81612 should have received the tabor notice. Ballots were dropped at the post office this week. Next week the office is open to vote early. On election day, there will be three service centers open to vote in person from seven am to seven pm. You can stop at any voting service center and vote. At the service centers you can vote in person, drop off your ballot, pick up a replacement ballot, register to vote and update your registration record. The centers open on election day are the Pitkin County clerk and recorder’s office, Snowmass Village town hall and Grace church in Emma. Pitkinvotes.org. has sample ballots and links to the Tabor notices. The office will be open on Saturdays from ten to two. Mayor Skadron moved Ordinance 31 from first reading to be read after Resolution 127 under public hearings. CITIZEN COMMENTS AND PETITION 1. Ruth Harrison said she is tired of the bears paying the price for the citizens. Fines need to be raised to a price that will cause businesses to contain their garbage. The City should pay for bear trash cans. She suggested dropping food on hunter creek and opening the landfill to bears. We created the problem let’s fix it. 2. Mark Friedberg addressed the code changes in 2012 where residential properties in C1 zone, specifically 611 E Hopkins were made non-conforming with the new code. He wants to discuss the reasonableness of using the property and getting access to the rooftop. There is no provision to get access to the rooftop. He asked if there is any way that Council would give consideration to allow that. The way the code is written there is no provision for it. It is reasonable to ask to access the rooftop from inside the property and have a modest use. Chris Bendon, community development, said it is a non-conforming use and a height issue. The non-conforming requirements in the code are strict for a circumstance like this. You can remodel but can’t change where it would increase the footprint. If Council is interested in amending that part of the code they would come back with a policy resolution. 3. Colleen Collins said she is concerned the employee generation study survey is dragging out and it impacts her and other property owners as to what fees will be assessed at. She is looking for relief and suggested a moratorium or consensus that a smaller home square footage be waived. It is a really big conversation and more than employee generation. COUNCILMEMBER COMMENTS 1. Councilwoman Mullins said she spent four days in Wales and it was spectacular. 2. Councilman Frisch said CORE is celebrating its 20 th anniversary October 20 th at Limelight. Contact lucy@aspencore.org for more information. 3. Councilman Frisch said regarding the rooftop access, he does not want to open a can of worms of adding residential to the core. It is best for the community to keep further residential out of the core but this request may be worthy of a discussion. 4. Councilman Frisch said better bear cans are ok. He is not sure about increasing fines or food drops but open to listen to anything. 5. Councilman Frisch said the employee generation study update will not be until November. It is hard to have a discussion without getting that back. Once budget is over he would like to discuss it at a work session. P14 VI.c Regular Meeting Aspen City Council October 13, 2014 3 6. Councilman Romero said he is in favor of not increasing the parking fees as part of the budget. 7. Councilman Romero is in favor of a separate and independent agency conducting an analysis of the parking program and the disconnect of revenues. 8. Councilman Romero said he agrees and is empathetic with the housing impacts of local home owners. He is happy to have a special work session if required. 9. Councilman Daily said he agrees that an independent review of parking is appropriate. 10. Mayor Skadron said the independent audit is happening. There is an independent citizen review board comprised of Howie Mallory, Peter Loras and Jenny Elliot. They are in the process of scope and work. Steve Barwick said the citizen board is interviewing the auditors. Mayor Skadron relayed the request for the audit to the city manager. Councilman Romero said it may be more productive to deploy an outside agency. 11. Mayor Skadron compliment the Aspen high school football team. The homecoming game was a hard fought match in the rain and he is proud of the Skiers 12. Mayor Skadron asked for the status of the bear proof garbage cans. Mr. Barwick said new tops are ordered and they changed the way they are doing pickup. They are not putting plastic liners in the cans in the evening anymore since the bears can pull out the liners. By next spring all the lids will be replaces. Councilwoman Mullins asked about the management of the recycle center. Mr. Barwick said they have received lots of complaints. The facility is managed by Pitkin county and under contract by waste management. The county has changed the way they manage it and are working on a longer term solution. BOARD REPORTS 1. Councilman Romero said the RFTA five year strategic plan is progressing. The 2015 budget is in process with the first review at next month’s meeting. 2. Councilman Daily said the five year RFTA plan is informative and glad they put it out. 3. Councilman Frisch said the Nordic Council is finalizing its master plan. CONSENT CALENDAR Resolution 114 – stormwater cleaning services. Councilwoman Mullins asked if the cleaning is done periodically. April Barker, engineering, said the large vaults are cleaned two to three times per year. The streets department cleans inlets and pipes annually but they only clean trouble areas then what they can get to. Councilwoman Mullins asked how often will we spend $72,000. Ms. Barker said some portion will be cleaned annually and that contract may range between 50,000 - 100,000 dollars until the system is clean and problem spots identified. Councilwoman Mullins asked what they do with the sediment. Ms. Barker said they store it temporarily to remove the water then take it to the landfill once dry. This year it will be stored at the Burlingame construction site. Councilwoman Mullins asked if there is any value in it. Ms. Barker said some of the material from glory hole pond will be used at Rio Grand park. Councilman Frisch asked if the money was budgeted. Ma Barker said it is part of the operating budget. Resolution 129- Mill Street bridge repair project. Councilwoman Mullins asked if most of the repairs will be to the pedestrian paths. Adam Racette, engineering, said it is a minor repair to the paths. Demolishing the curb will eliminate any future runoff concerns and increase the integrity of the path. The path will remain open to pedestrians during construction. Mayor Skadron said it is not yet a safety hazard but soon will be. Mr. Racette agreed. P15 VI.c Regular Meeting Aspen City Council October 13, 2014 4 Resolution 123 – Twin Lakes water agreement. Phil Overeynder, water department, said they have been working on this for 15 years. It is a junior water right and is filed after the right for the principle diversion structures. Over the last decade there was an impasse over reaching an agreement. Councilwoman Mullins asked why Twin Lakes were able to obtain the junior water rights. Mr. Overeynder said under water law anyone can apply for use. There is sufficient water to be diverted. Our case demonstrated there was an impact to the junior water rights. Councilwoman Mullins asked about the rate of release and where it is released. Mr. Overeynder said it is released from Grizzly reservoir. This enables us to store water in the upper reaches of the water shed and release so it will be available for the late irrigation season. There is an additional 200 acre feet of water available. He said we already have a program for a schedule of release for the hunter creek/ twin lake exchange Mayor Skadron said the request for funds of $25,000 is to initiate a joint study and legal fees. Mr. Overeynder said Council approved that in 2001 and there are no additional financial costs. He said the money was already spent and we are just realizing the benefit of it now through the agreement. Resolution 124 - Manned visual inspection of raw water pipes. Mayor Skadron said the funds are available in the water capital fund under the line item castle creek head gate. He said the money was requested in 2013 but there is no carry forward to 2014 and asked why. Dave Hornbacher, water department, said that capital project carry forward was not absorbed into 2014 by named project. The funds were brought forward as a single unit. Mayor Skadron said he did not see project in 2014 but did see in 2013. Mr. Barwick said when the funds are not expended in 2013 they are re-appropriated in the spring of 2014 but not in the written book for 2014. It is a supplemental to move from 2013 to 2014. Mayor Skadron said the line items in the budget are for 25,000 each but request is for 53,000 and asked where the extra money is coming from. Mr. Hornbacher said it is covered with a similar project associated with maintenance. Resolution 126 – Smuggler/Hunter surface drainage master plan. Mayor Skadron said the $50,000 change order is because the data indicates what was originally needed may by be more. Ms. Barker replied the old hydrology was used for the original amount. With the new hydrology the recommendations and pipe size may be smaller. Mayor Skadron asked why we are not planning conservatively with the expectation of a 100 year event. Ms. Barker said we should be planning for a 10 year event through our pipes and a 100 year event through the streets. Mayor Skadron said the probability of an event does not satisfy the necessary threshold. Councilwoman Mullins said the 100 year event will be a smaller event based on the new report and may potentially save money on future on infrastructure. P16 VI.c Regular Meeting Aspen City Council October 13, 2014 5 • Resolution #114, Series of 2014 – Stormwater Cleaning Services • Resolution #129, Series of 2014 – Mill Street Bridge Repair Project Construction Contract Approval • Resolution #123, Series of 2014 – Agreement with Twin Lakes Company Regarding Mitigation of Impacts Associated with Exercise of Junior Water Rights • Resolution #124, Series of 2014 – Manned Visual Inspection of Concrete Pipe in Raw Water System • Resolution #126, Series of 2014 – Smuggler/Hunter Surface Drainage Master Plan – Change Order Approval • Resolution #128, Series of 2014 – Toro utility Vehicle Contract Approval • Resolution #125, Series of 2014 – Burlingame Ranch Phase II Landscape Maintenance Contract • Minutes – September 22, 2014 • Resolution #130, Series of 2014 – Burlingame Phase II Construction Contract Change Orders Councilwoman Mullins moved to approve the consent calendar; seconded by Councilman Frisch. All in favor, motion carried. Ordinance #34, Series of 2014 – 1235 Mountain View Drive (Messiah Lutheran Church) Ordinance Amendment. Jennifer Phelan, community development, said this is to amend an ordinance from 1991 to allow additional options for affordable housing mitigation on the site. This site has historically been home to the Messiah Lutheran church. The new owner would like to convert the property to a residence. In the early 1990’s the site was approved to allow for a 3 bedroom affordable housing unit to house the minister. This housing was required mitigation for expansion of a downtown commercial building. The request is to amend the ordinance to allow for additional affordable housing options. Staff is recommending approval on first reading. Second reading is scheduled for November 10 th . Councilman Romero asked for Ms. Phelan’s response to Councilmen Frisch and Romero living on the same street. Ms. Phelan stated both Councilman Romero and Frisch live on Mtn. View drive. It looks like they are beyond the 300 feet of property. Jim True, city attorney, asked if they received notice. Ms. Phelan said the notice had not gone out yet. Councilman Frisch asked if something like this issue has come up before. Ms. Phelan said this is unique and not since she has been here. The church use was considered a civic use. The minister needed a place to live and it worked out for the bank to put housing on the site. Councilman Daily asked if the proposed residential square footage is consistent with the existing size of the church. Ms. Phelan said that is hard to pin down. The old minutes say they were approved for a duplex. The architect will need to deconstruct to meet the conformity. Councilman Daily moved to read Ordinance #34, Series of 2014; Seconded by Councilwoman Mullins. All in favor, motion carried. ORDINANCE NO. 34 (SERIES OF 2014) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING AN ORDINANCE AMENDMENT TO ORDINANCE P17 VI.c Regular Meeting Aspen City Council October 13, 2014 6 NO. 20 (SERIES OF 1991) FOR THE PROPERTY LOCATED AT 1235 MOUNTAIN VIEW DRIVE Councilman Romero moved to adopt Ordinance #34, Series of 2014 on first reading; seconded by Councilwoman Mullins. Roll call vote; Councilmembers Frisch, yes; Daily, yes; Mullins, yes; Romero, yes; Mayor Skadron, yes. Motion carried. Ordinance #32, Series of 2014 – Authorizing the Issuance of 2014 Parks and Recreation Bonds. Don Taylor, finance department, introduced Steve Jeffers, underwriter. This bond issue will pay for the acquisition of the Dolinsek property and five other parks projects that were in their capital plan. The ordinance was written so that council can redirect those funds to other parks projects. The second aspect of the ordinance is to refund a portion of the 2005 parks and recreation bonds. This will result in around $160,000 in savings. The net interest costs as of today are just under 2.3 percent. Mayor Skadron asked if that is the reason for the emergency ordinance. Mr. Taylor said yes it is to protect the rates. The rates can go either way and they are good now. Mayor Skadron asked if they are confident they will sell. Mr. Jeffers said yes, Aspen is a double A rated credit. The demand for double A paper is phenomenal. It is bank qualified and will sell very easily. Councilman Romero said he did not see the notion of the emergency play in the memo. He said he was not focused on the fact we are using the emergency ordinance pathway. It will still be sound in the market in 30 days from now. The notion of deploying the emergency route is one of convenience. Mr. True said the emergency ordinance section of the charter, 4.1, states the emergency ordinance for the preservation of public property is authorized. The same type of item has been presented to Council before. Councilman Romero said it has been awhile that a bond issue has not been an emergency ordinance. Mr. True said the advisors have always suggested to do as an emergency. Councilman Romero said it is mitigating the risk of what can happen in the market place. Mr. Jeffers said there are a fair amount of bond issues coming to market especially school bond issue. Councilman Romero said he does not see those dynamics changing in next 30 days. The compelling evidence is the fact we have used it in the past. It is real and there is risk. Mr. True said this does require two meetings and will come back in two weeks. Councilwoman Mullins asked to explain emergency ordinance. Mr. True said it is handled as an ordinance through two meetings and we are treating it like a standard ordinance. It will take effect as soon as it passes at second reading instead of waiting 30 days. Councilwoman Mullins said she understands the Dolinsek property but $900,000 for something in 2016 it’s unclear why that is part of an emergency ordinance. She does not think we should take the emergency ordinance lightly. She does not see the emergency in the projects other than Dolinsek. Mr. Taylor said the emergency relates to locking in the rates not the projects. It would not matter what is on the list it is locking in very favorable rates while we can. Councilwoman Mullins said it is funny to describe it as an emergency. It would apply to something that is a threat to safety or a potential loss to the City. Mr. Taylor said they would lose the ability to lock in the rates. There is the two week waiting period where the public can speak their peace. The only thing different is the referendum period. Mr. True said the charter states other grounds for emergency; health, peace and safety. He is not suggesting those are at issue. The charter does not require a public hearing but it has been scheduled. P18 VI.c Regular Meeting Aspen City Council October 13, 2014 7 Councilman Frisch said the reasons are market risk and to limit the ability to recall. He said neither of them are worthy of emergency designation. Part of our strong bond rating is on an unanimous show of support. He will support what finance is asking for. It will have two readings with a public hearing. If it turns into a problem then it can be readjusted. From a paperwork standpoint he should not have to search out the fine print for emergency. Under request of Council it should state it is an emergency. Councilman Daily said he is comfortable with the emergency ordinance approach. He is pleased with the two week period and public hearing. It may not be necessary to do it this way but we are reducing risk. Mayor Skadron said he concurs with Councilman Daily. It is an appropriate mitigation of risk to the community. Councilman Daily moved to read Ordinance 32, Series of 2014; seconded by Councilman Daily. All in favor, motion carried. ORDINANCE NO. 32 (SERIES OF 2014) AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF ASPEN, COLORADO, OF ITS PARKS AND OPEN SPACE SALES TAX REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014, FOR THE PURPOSE OF ADVANCE REFUNDING A PORTION OF THE CITY’S PARKS AND OPEN SPACE SALES TAX REVENUE BONDS, SERIES 2005B AND PURCHASING AND IMPROVING TRAIL, RECREATION AND OPEN SPACE PROPERTIES AND ANCILLARY FACILITIES; PRESCRIBING THE FORM OF THE SERIES 2014 BONDS; PROVIDING FOR THE PAYMENT OF THE SERIES 2014 BONDS FROM THE SAME REVENUES PLEDGED TO THE PAYMENT OF THE SERIES 2005B BONDS TO BE REFUNDED (CONSISTING OF THE CITY’S ORIGINAL 1.0% OPEN SPACE SALES TAX AND ITS ADDITIONAL 0.5% OPEN SPACE SALES TAX); PROVIDING OTHER DETAILS AND APPROVING OTHER DOCUMENTS IN CONNECTION WITH THE SERIES 2014 BONDS; DELEGATING THE AUTHORITY TO MAKE A FINAL DETERMINATION OF CERTAIN TERMS OF THE SERIES 2014 BONDS; DIRECTING OFFICERS OF THE CITY TO EXECUTE CERTAIN DOCUMENTS IN CONNECTION WITH SUCH REFUNDING BONDS; AND DECLARING AN EMERGENCY Councilwoman Mullins moved to adopt Ordinance #32, Series of 2014 on first reading; seconded by Councilman Frisch. Councilman Romero said council has exercised this path previously. We are conducting a properly noticed public hearing. The only thing the emergency ordinance is truncating is the referendum period. He supports the process. Roll call vote. Councilmembers Mullins, yes; Frisch, yes; Romero, yes; Mayor Skadron, yes. P19 VI.c Regular Meeting Aspen City Council October 13, 2014 8 Ordinance #33, Series of 2014 – Code Amendment: Transferable Development Right Certificates (TDRs). Sara Adams, community development, told the council TDRs are created on landmarked sites and are valued at 250 square feet of floor area per certificate. The purpose of the amendment is to preserve landmarks, maintain a viable program and to not impact neighborhood character. The general premise is the proposal works within the current house size allowances. It allows a single family home on a large lot to catch up to the floor area allowed for a duplex. This would only apply to zones that allow a duplex. For example, in the R6 zone the current code allows just over, 3200 square feet of floor area on a lot less than 9,000 square feet and a duplex is not allowed. The code allows one TDR per residence. The max floor area for a single family home is 3,490. A large lot greater than 9,000 square feet would support a duplex and a single family home is allowed 3,660 square feet. A duplex is allowed just over 4,000. Duplexes are allowed 400 more square feet of floor area than a single family home. Duplexes can land two TDRs adding 500 square feet to the baseline. The proposal is to allow a single family home to catch up to what a duplex is already allowed. It would add two more TDRs to land on a single family home. This proposal relates only to single family homes on larger lots. Staff feels the neighborhood impact would be minimal and recommends Council adopt on first reading. Councilwoman Mullins asked what the site coverage for R6 is. Ms. Adams said the site coverage requirements would not change. If three TDRs were landed you still have to work within the confines of other requirements. Councilwoman Mullins said a single family home with TDR’s would still be smaller than a duplex and it is hard to argue against. Councilman Frisch said we just approved a bunch of landing sites at Maroon Creek. To go from one to three in addition to what we just did at Maroon Creek may be too fast too much. Anyone who has a chance to put up a duplex does because they get an extra 400 square feet. Should duplex be larger than single family homes. He asked for the philosophy behind why duplex are allowed to be larger than single family home. He wants to widen the use but doesn’t want to open the flood gates. He also asked about conflicts of existing variances. Will the maximum now become the minimum. Site coverage supersedes the use of TDRs. Ms. Adams said there is always a maximum but it may not be achievable which is why they allow for applicants to apply for variances. This amendment would not supersede any dimensional requirements. Councilman Daily asked what is the original purpose of the difference in allowable FAR between single family and duplex. Ms. Adams said it incentivized duplexes and more density on the lot. She said she will have more information at second reading. Mayor Skadron asked if it possible to identify the landing sites. It results in applicants asking for things that are not allowed as written. Ms. Adams said it is not possible to identify every site in the city it would apply to. She can show where these zone districts are but not every home. An applicant would have to go through a variance process to request changes. Councilman Frisch asked when a deal happens are they printed in the paper or recorded. Ms. Adams said they are recorded. Councilman Frisch wants to know how healthy the TDR program is and would like to see the dates and prices. P20 VI.c Regular Meeting Aspen City Council October 13, 2014 9 Mayor Skadron said the genesis of this request flows from our desire of historic preservation. He asked how many historic properties are out there that we are trying to protect. Ms. Adams said it is definitely more than one. This program also applies to already landmarked properties and it is hard to anticipate how many will come in. It removes development pressure from the landmark. Mayor Skadron asked what the inventory of historic assets we are trying to protect is. Amy Simon, community development, said it is not something they can really guess. They are seeing properties that would be considered done but are being refurbished. Ms. Adams said there are almost 300 landmarks. Ms. Simon said properties that were renovated in the 1980’s are being changed back to their original state. Councilwoman Mullins said they are tools for historic preservation. If the City supports the program they need to support TDRs. People will come in asking for variances. Currently a single family is allowed one. She asked if it would be a problem to have the ordinance allow two and if works change to three. It is one of the most valuable historic preservation tools. She said it is upsetting when it gets abused from someone who gets a 500 square foot bonus then sells two TDRs. Councilman Frisch moved to read Ordinance #33, Series of 2014; seconded by Councilwoman Mullins. All in favor, motion carried. ORDINANCE No. 33 (Series of 2014) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AMENDMENTS TO CHAPTER 26.710 ZONE DISTRICTS, OF THE CITY OF ASPEN LAND USE CODE. Councilman Frisch moved to adopt Ordinance #33, Series of 2014 on first reading; seconded by Councilman Daily. Roll call vote; Councilmembers Daily, yes; Mullins, yes; Romero, yes; Frisch, yes; Mayor Skadron, yes. Motion carried. Ordinance #28, Series of 2014 – 1006 E. Cooper Avenue – Transferable Development Rights. Ms. Simon told the Council this is a 4,400 square foot lot with a Victorian house on it. The applicant is going to restore the home and remove the non-historic additions. They are proposing to build a 1,700 square foot addition. The owner would like to sell the square footage they are not using as two TDRs. Staff is recommending approval. Councilman Frisch said in the past applicants have asked for a bonus then sold it and the applicant is not doing that. Sara Upton, representing the applicant said they originally had approval for a structure 160 square feet larger. They thought how can you ask for a bonus then sell it. Councilman Mullins said she appreciate a project that don’t max out the site. Mayor Skadron opened the public comment. There was none. Mayor Skadron closed the public comment. Councilwoman Mullins moved to adopt Ordinance #28; seconded by Councilman Frisch. Roll call vote; Councilmembers Frisch, yes; Daily, yes; Mullins, yes; Romero, yes; Mayor Skadron, yes. Motion carried. P21 VI.c Regular Meeting Aspen City Council October 13, 2014 10 Resolution #127, Series of 2014 – Policy Resolution – Double Basement Code Amendment. Chris Bendon, community development, said this policy resolution provides staff with general direction to come back with an ordinance. They did outreach through two sources including the community development newsletter. It went to around 650 people asking if they felt there was an issue the City needed to engage in and thoughts on the draft language. They did not get an extensive amount of feedback but what they did get was across the board. They also did outreach with P&Z and HPC. It also ran the gamut of responses. Mr. Bendon showed 40 pounds of application for a single family house. He said it is a really good reason why they need to go to digital. 50 years ago this application would have been three sheets of paper. The application does have a double basement. There is a single level of basement normal size and a second level to accommodate a basketball court. If adopted this would give direction to amend the land use code. There are also discussions including changes to construction management. The resolution does not address that piece. Staff is recommending approval. Mayor Skadron said the exhibit suggests the complexity of projects coming before them. Mr. Bendon agreed. Councilman Romero said it is not all driven by the private sector but by increased regulations. Mr. Bendon said this is a new phenomenon but as the value of land and development potential scarcity the next place to go is down. Councilman Romero asked Mr. Bendon his view that the natural governor may be the expense of doing this and what he says to the spare no expense projects. Mr. Bendon suggests that typical constraints don’t apply as rigorously here. Some people can do things because they want to not because it makes economic sense. Councilman Romero said in that line of thinking, how much consideration was given to the notion of an absolute prohibition. Mr. Bendon said he has some options for council to consider. The resolution was worded to amend the land use code to curtail the development of double basements and extra deep basements in residential areas due to their significant construction impacts on neighboring properties and on the community. He said it is broad enough to consider floor area limitations or an outright prohibition. Councilman Daily stated he agrees with Staff’s initial findings that there is a community interest in limiting these excavations. They take significantly longer and have more significant impacts to neighbors. He said he can’t find a reasonable justification for the double basement concept. Councilman Frisch said they are heading towards the right path. The amount of energy and resources needed are one thing and the time and hassle and disruption to neighbors and the community are another. He said he is open to hearing from the public. He wants to make sure people have the ability to build a great basement and is supportive of something between 14-17 feet. Councilwoman Mullins said we are not there yet and need to take a couple steps back. We need to figure out what the problem we are trying to solve is. Is it construction impact or environmental. What is it exactly. We need to define what we are trying to solve. One fear is someone figures out a way to get around the problem. When we legislate to solve a particular problem it leaves room to figure out a way around the problem. We are solving one thing but creating another problem. We can formulate a policy if we better understood what is creating the impact. Councilman Frisch said if it was just 15 feet there would not be a problem. We are combining a single level with height restriction. Mr. Bendon said you would not be able to stack basements. The excavations are logarithmic that the deeper you go the more impactful it is. Mayor Skadron said it is P22 VI.c Regular Meeting Aspen City Council October 13, 2014 11 essentially a loophole that clever architects have found in land use code. This type of growth is Inconsistent with the history, scale and context of our built environment and he is absolutely opposed to it. We should move aggressively and shut this down. Councilwoman Mullins stated she is afraid if we do something as specific as this the next guy will figure out a way around it. She would rather legislate against the impacts that these basements are creating. It’s the noise and where do you put the material excavated. Mayor Skadron agrees but it is not a threshold issue. There is a value proposition here and Council needs to make an expression of that. The community should not be re-interpreted by everyone who comes here. He related it to the Dancing Bear who wanted their own private tunnel. Councilwoman Mullins said she is not for a double basement but a more general restriction like the amount of excavated material per FAR. Mr. Bendon said there is more than one technique to apply. There are also policies regarding ongoing construction impacts. Councilwoman Mullins suggested to change the code to include basement as FAR. Mr. Bendon said basements are largely exempt and only count if exposed. If it doesn’t matter if basement walls are exposed or not what would likely happen is every place with a basement would excavate around the perimeter for additional daylighting and walk outs. Councilman Romero said he is in the Mayor’s camp. It is not just the construction impacts. It is the added program, density and uses that occur. It will require more service and upkeep and a long term effect. He agrees with Mr. Bendon that the policy that governs how basements are treated has a good degree of balance. The technique most appropriate would be an absolute depth and one level. It would preserves all the core benefits of existing code. It is no different than an absolute height or FAR limit. Councilman Frisch said it is an addition never thought about as a community. Councilwoman Mullins said she supports what Councilman Romero says. Something as restrictive as possible with least likely to find a way around. Mayor Skadron opened the public hearing. 1. Steev Wilson said the project being called out is not the only one deeper than 15 feet going on. There is an impact of sloping sites. It is prudent to think about how those sites would be affected. From an energy impact standpoint, basements produce extensive energy portfolios. They use 20% of the energy of the portions above grade. It was once thought of as a green strategy and are long term energy efficient structures. If they are looking to mitigate the problems do it through construction mitigation. The impact is to roads, landfills and public amenities. Councilman Frisch said the question is how much energy does it take. He is concerned about the landfill and concerned about the duration it takes. He said Mr. Wilson raised a good point about sloped sites. He asked for examples of slopes and what does 15 feet look like on a non-flat site. Mayor Skadron asked Mr. Wilson if his primary concern is with the 15 feet language. Mr. Wilson said he is less concerned with the elimination of double basement. It may affect sites that are already limited by slope. Mayor Skadron closed the public hearing. Councilman Frisch moved to adopt Resolution #127, Series of 2014; seconded by Councilwoman Mullins. Roll call vote; Councilmembers Romero, yes; Frisch, yes; Daily, yes; Mullins, yes; Mayor Skadron, yes. Motion carried. P23 VI.c Regular Meeting Aspen City Council October 13, 2014 12 Ordinance #31, Series of 2014 – Code Amendment Double Basements. Mr. Bendon said the ordinance as drafted would implement a floor area penalty for space deeper than 15 feet from the finished grade. Two issues from the design community include sites that have steep slopes and how to treat crawl spaces. The industry has moved to crawl spaces as a sub-basement level. The code was recently amended to allow 5.6 foot height to accommodate mechanical that does not count. Staff’s response is the crawl space amendments are working well. For any moderately sloped site it could be accommodated. For very steep sloped sites they may have additional sensitivity around cuts that deep. These sites are already a difficult property and may result in a stepped nature to a basement. Another way to look at it may be a sites with over 20% slope get a 20 foot cut instead of 15. Mr. Bendon passed out the code language for discussion. Councilman Frisch asked if there is an absolute maximum in the code pertaining to height. Mr. Bendon replied there is none. Mr. Bendon reviewed the options. Option A is how the ordinance is written and counts basement spaces deeper than 15 feet towards the floor area. There is a floor area penalty but no prohibition from going deeper. Option B sets an absolute limit of one story with a 15 foot maximum. Options C and D address excavation depth opposed to depth of finished product. Every project will have a different footer technique or hit a boulder. There may be some technical challenges with this. Councilwoman Mullins stated she supports option C. It solves the problem best. If someone has to get a variance to remove the boulder or make the basement smaller because they can’t remove it the challenge is up to the architect. The complaints Council have heard are about the excavation and the impacts of it. Councilman Frisch said you could make the maximum excavation depth more than 15 feet for wiggle room. He is not sure that A and B are that different. A allows a 30 foot dig if someone wants to. He likes some variation of B and would like to get out of the floor area discussion. Councilman Daily stated he is leaning towards option B. Councilman Romero also supports option B. He does not want to get in to governing the depth of the excavation. Mayor Skadron asked for the difference between B and C. Mr. Bendon replied option B regulates the floor level of the finished product. C only allows for a 15 foot deep hole. Mayor Skadron also supports option B Councilman Frisch said he can give C a bit more support. He can’t think why someone would want to dig deeper than 15 feet but they are. He said if there are too many holes in B that maybe we should look at option C. Councilman Romero moved to read Ordinance #31, Series of 2014; seconded by Councilman Frisch. All in favor, motion carried. ORDINANCE #31 (SERIES OF 2014) P24 VI.c Regular Meeting Aspen City Council October 13, 2014 13 AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AMENDMENT TO THE CITY LAND USE CODE SECTION 26.557.020 D8 REGARDING SUBGRADE AREAS OF SINGLE FAMILY AND DUPLEX BUILDINGS. Mr. Bendon included amendments to change the code section to 26.575.020 striking D8 and exchange the language from option B in the exhibit for the language in section 2. Councilwoman Mullins moved to adopt Ordinance #31, series of 2014, with amendments; seconded by Councilman Frisch. Roll call vote; Councilmembers Daily, yes; Frisch, yes; Mullins, yes; Romero, yes; Mayor Skadron, yes. Motion carried. Councilman Frisch moved to adjourn at 7:40pm; seconded by Councilman Romero. All in favor, motion carried. Linda Manning City Clerk P25 VI.c TDR Amendment - Second Reading 10/27/2014 Page 1 of 5 MEMORANDUM TO: Mayor and City Council FROM: Sara Adams, Senior Planner THRU: Chris Bendon, Community Development Director RE: Transferrable Development Right Certificate Code Amendment, Second Reading of Ordinance 33, Series of 2014. MEETING DATE: October 27, 2014 SUMMARY : Staff proposes an amendment to the Transferrable Development Right Certificates (TDRs) Chapter of the Aspen Land Use Code to expand landing sites. TDRs are equal to 250 square feet of floor area and are only allowed to be created on historic landmark lots and landed on non- historic lots. A policy resolution was approved on June 9, 2014 with direction for Staff to bring forward an Ordinance after the lodging incentive conversation was concluded. STAFF RECOMMENDATION : Staff recommends approval of the proposed ordinance on Second Reading. The draft Ordinance approves the landing of up to 3 TDRs for a large lot. QUESTIONS FROM FIRST READING : Why is the baseline allowable house size for a duplex larger than a single family home? The baseline floor areas in the Code were adopted in the 1980s. Allowing duplex homes to be 10% larger than single family homes was included to incentivize density. At the time Council preferred a slightly large home to house two families as opposed to a smaller home that housed one family. In the 1980s Council also thought that one half of the duplex may be smaller and therefore house a lower income family. Will allowing more TDRs to land conflict with other requirements of the zone district such as setbacks, site coverage and height? Landing a TDR requires a property to meet specific review criteria one of which is: “The development allowed on the receiver site by extinguishment of historic TDR certificates shall be that allowed in Chapter 26.710, Zone Districts…and shall not permit the creation of a nonconforming use or structure.” Increasing house size through TDRs does not override dimensional requirements and does not allow a nonconforming situation to occur. Variances are an option for any property owner that can prove to a review Board or to City Council that a hardship and a site specific constraint (that was not self-created by the owner) are present on the property. Landing a TDR on a property is not a site specific constraint. P26 VIII.a TDR Amendment - Second Reading 10/27/2014 Page 2 of 5 How healthy is the TDR program? One of the directives resulting from the Historic Preservation Task Force was to record TDR transactions with the Pitkin County Clerk and Recorder. Staff has recorded these documents to the best of their ability, which means we have a record of initial TDR selling price and TDR landing price. We have not seen TDRs change hands multiple times before landing. In our experience, the initial purchaser actually uses the TDR certificate on his/her property. The range of price for a single TDR certificate has been between $175,000 - $240,000. As noted below, only 24 TDRs of the 64 TDRs approved by Council have landed. The market is flooded with TDRs which drives their value down. In order for the program to be successful, we need to expand ways to land TDRs but not to the detriment of neighborhood character. Owners typically wait until a TDR is under contract for purchase before actually recording the deed restriction to permanently remove the floor area. A landmark can have approvals to create TDRs, but never execute the approval: this provides a landmark with the ability to put the FAR back on the property if there is no demand in the market. Council recently approved the ability for lots within the Maroon Creek Club PUD to land multiple TDRs depending on lot size. It is too early to know if/how this will impact the TDR market. Is Staff working on other options for landing TDRs? There is the potential for TDRs to be incorporated into future lodge code amendments based on Council direction. Disclaimer: The proposed system is much easier to understand in graphic form through a Staff presentation rather than through a memo. Staff plans to explain the concept with visuals at first reading. LAND USE REQUESTS AND REVIEW PROCEDURES : This meeting is to review potential changes to the TDR program. Pursuant to Land Use Code Section 26.310, City Council is the final review authority for all code amendments. All code amendments are subject to a three-step process. This is the final step in the process: 1. Public Outreach 2. Policy Resolution by City Council indicating if an amendment should be pursued 3. Public Hearings on Ordinance outlining specific code amendments. BACKGROUND & OVERVIEW: Alan Richman, on behalf of Neil Karbank, submitted a request to amend the Land Use Code to expand possible landing sites for transferrable development right certificates (TDRs). TDRs allow floor area to be permanently removed from historic landmarks through certificates of 250 sf each. Only non-historic homes are able to be larger by using TDRs. One TDR is allowed per residence, which means that a duplex is allowed to use TDRs. P27 VIII.a TDR Amendment - Second Reading 10/27/2014 Page 3 of 5 The proposed amendment allows single family homes on larger lots to be the same size as a duplex. PURPOSE : Preserve historic landmarks by bolstering the TDR program 1) The ability to land TDRs in the Commercial Core (CC) and Commercial (C-1) Zone Districts was prohibited last year when Council amended the Code to ban free market residential uses. This change significantly limited the TDR market. 2) The lodge incentive program, which utilized TDRs, was rescinded. 3) Only 24 TDRs of the 64 TDRs approved by Council have landed. The market is flooded with TDRs which drives their value down. In order for the program to be successful, we need to expand ways to land TDRs but not to the detriment of neighborhood character. Exhibit C explains the history of the TDR program and where TDRs have been established and landed. 4) The TDR program is the only historic preservation incentive that permanently removes development pressure from a landmark property. It is a valuable tool that needs to remain viable. Aspen’s TDR program is unique for a small town: this type of benefit is usually only found in large cities. A few historic properties that have benefitted from the TDR program : 208 E. Hallam Street: (5 TDRs – approved for removal of 1,250 sf of floor area) P28 VIII.a TDR Amendment - Second Reading 10/27/2014 Page 4 of 5 604 W. Main Street: (12 TDRs - approved for removal of 3,000 sf of floor area) 430 W. Main Street: (10 TDRs – approved for removal of 2,500 sf of floor area) P29 VIII.a TDR Amendment - Second Reading 10/27/2014 Page 5 of 5 No impact to neighborhood character The proposed amendment works with the current house size allowances for single family and duplex homes. It allows single family homes on larger lots to reach a duplex home size. There are three factors that make this work: 1) There is a 400 sf FAR difference between single family and duplex house sizes. This means that single family and duplex homes with the same size lot and zone district do not have the same house size – the single family home is 400 sf less than a duplex. 2) Residential zone districts require larger lots to support more than one residence. This means that duplex homes are only allowed on larger lot sizes. 3) Currently the Code allows duplexes to land 2 TDRs – 1 per residence. PROPOSAL : Staff proposes to allow single family homes on larger lots to achieve the duplex home size. The single family house size would be equal to the maximum already allowed for a duplex. Visuals will be provided in the staff presentation at first reading to compare house sizes and to explain the proposal. Council Options : a) Allow single family homes on larger lots to increase home size to that allowed for a duplex. This means ability to land 3 TDRs . b) Allow single family homes on larger lots to increase home size slightly by 2 TDRs . PUBLIC OUTREACH : Staff has consulted with the Historic Preservation Commission and the Planning and Zoning Commission to receive feedback on the proposed amendment. HPC voiced interest in a vibrant TDR program. There was concern about TDRs landing adjacent to landmarks, which is already allowed in the Land Use Code. P&Z minutes are attached as Exhibit D. STAFF RECOMMENDATION : Staff recommends adoption of the draft ordinance on Second Reading. RECOMMENDED MOTION (A LL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE ): “I move to approve Ordinance No. 33, Series of 2014 on second reading.” CITY MANAGER COMMENTS :_____________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ATTACHMENTS : Exhibit A - Staff Findings Exhibit B - Redline version of code amendment Exhibit C - TDR background information and TDR landing/sending site map Exhibit D - Minutes from Planning and Zoning referral P30 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 1 of 4 ORDINANCE No. 33 (Series of 2014) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AMENDMENTS TO CHAPTER 26.710 ZONE DISTRICTS, OF THE CITY OF ASPEN LAND USE CODE. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to craft a code amendment to expand the ability to extinguish transferrable development right certificates (TDRs);; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall begin with Public Outreach, a Policy Resolution reviewed and acted on by City Council, and then final action by City Council after reviewing and considering the recommendation from the Community Development; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with the public and received referral comments from the Planning and Zoning Commission and the Historic Preservation Commission regarding the code amendment; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on June 9, 2014, the City Council directed staff to draft a code amendment to expand the ability to extinguish transferrable development right certificates (TDRs); and, WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code Section 26.470; and, WHEREAS, the Aspen City Council has reviewed the proposed code amendments and finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310.050; 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: Code Amendment Objective The objective of the proposed code amendments is to maintain a viable TDR program that preserves Aspen’s historic landmarks by expanding the ability to land TDRs on non-landmark single family residences. P31 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 2 of 4 Section 2: Aspen Land Use Code Section 26.710.040.D.11, Medium Density Residential (R-6) Zone District, Dimensional Requirements, in part shall read as follows: a. Each City of Aspen Historic Transferable Development Right certificate extinguished, pursuant to Section 26.535, Transferable Development Rights, shall allow an additional two hundred and fifty (250) square feet of Floor Area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the inventory of historic sites and structures shall not be eligible for this Floor Area increase. Non-conforming uses and structures shall not be eligible for this Floor Area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions: b. Non-historic properties with a net lot area of 9,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. c. Properties within the same subdivision or planned development as a sending site may be specified as eligible for up to two (2) floor area increases per residence pursuant to the subdivision or planned development approval. The properties to be specified as eligible for up to two (2) floor area increases per residence shall be located within the same subdivision or planned development so as to enhance preservation of the historic resource, considering a recommendation from the Historic Preservation Commission, shall not be located adjacent to the sending site and shall be described and depicted in the subdivision or planned development approvals granted by City Council. The total number of floor area increases permitted within the subdivision or planned development shall not exceed an aggregate total of one (1) per non-historic residence within the entire subdivision or planned development. Section 3 : Aspen Land Use Code Section 26.710.050.D.10, Moderate Density Residential (R-15) Zone District, Dimensional Requirements, in part shall read as follows: Each City historic transferable development right certificate extinguished, pursuant to Chapter 26.535, Transferable development rights, shall allow an additional two hundred and fifty (250) square feet of floor area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the inventory of historic sites and structures shall not be eligible for this floor area increase. Nonconforming uses and structures shall not be eligible for this floor area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions: a. Non-historic properties with a net lot area of 15,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. P32 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 3 of 4 Section 4 : Aspen Land Use Code Section 26.710.060.D.10, Moderate Density Residential (R- 15A) Zone District, Dimensional Requirements, in part shall read as follows: Each City historic transferable development right certificate extinguished, pursuant to Chapter 26.535, Transferable development rights, shall allow an additional two hundred and fifty (250) square feet of floor area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the inventory of historic sites and structures shall not be eligible for this floor area increase. Nonconforming uses and structures shall not be eligible for this floor area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions: a. Non-historic properties with a net lot area of 15,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. Section 5 : Aspen Land Use Code Section 26.710.080.D.10, Low Density Residential (R-30) Zone District, Dimensional Requirements, in part shall read as follows: Each City historic transferable development right certificate extinguished, pursuant to Chapter 26.535, Transferable development rights, shall allow an additional two hundred and fifty (250) square feet of floor area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the Inventory of Historic Landmark Sites and Structures shall not be eligible for this floor area increase. Nonconforming uses and structures shall not be eligible for this floor area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions: a. Non-historic properties with a net lot area of 30,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. Section 6: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 7: Any scrivener’s errors contained in the code amendments herein, including but not limited to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 8: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a P33 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 4 of 4 separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 9: Effective Date. In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall become effective thirty (30) days following final passage. Section 10: A public hearing on this ordinance shall be held on the 27 th day of October, 2014, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 13th day of October, 2014. Attest: __________________________ ____________________________ Linda Manning, City Clerk Steven Skadron, Mayor FINALLY, adopted, passed and approved this ____________, 2014. Attest: __________________________ ___________________________ Linda Manning, City Clerk Steven Skadron, Mayor Approved as to form: ___________________________ James R. True, City Attorney P34 VIII.a TDR Code Amendment, First Reading Exhibit A 10/13/2014 Page 1 of 1 Exhibit A: Staff Findings 26.310.040. Amendments to the Land Use Code standards of review – Initiation In reviewing a request to pursue an amendment to the text of this Title, per Section 26.310.020(B)(2), Step Two – Public Hearing before City Council , the City Council shall consider: A. Whether there exists a community interest to pursue the amendment. Staff Findings: TDRs are a valuable and meaningful incentive for historic preservation that removes development pressure from historic landmark properties. In order for the TDR program to work, the TDRs have to land somewhere. Staff believes there is a community interest to maintain the viability of the TDR program by expanding the landing sites in a thoughtful manner that does not negatively impact the character of town. B. Whether the objectives of the proposed amendment furthers an adopted policy, community goal, or objective of the City including, but not limited to, those stated in the Aspen Area Community Plan. Staff Findings: The 2012 Aspen Area Community Plan includes a policy in the Historic Preservation Chapter to “encourage the use of the City’s Historic Transferrable Development Right program as a method of preserving the historic integrity of designated structures.” A policy in the Managing Growth for Community and Economic Sustainability Policies Chapter states “ Ensure that the County and City Transferrable Development Rights (TDR) programs continue to effectively preserve backcountry areas, agricultural lands and historic structures, respectively.” Staff finds that the proposed amendment furthers these policies by expanding the use of TDRs. C. Whether the objectives of the proposed amendment are compatible with the community character of the City and in harmony with the public interest and the purpose and intent of this Title. Staff Findings: Staff finds that the objective of the code amendment, to have a viable historic TDR program, is in harmony with the public interest and the purpose of Title 26. Staff finds this criterion to be met. P35 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 1 of 4 ORDINANCE No. 33 (Series of 2014) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AMENDMENTS TO CHAPTER 26.710 ZONE DISTRICTS, OF THE CITY OF ASPEN LAND USE CODE. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to craft a code amendment to expand the ability to extinguish transferrable development right certificates (TDRs);; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall begin with Public Outreach, a Policy Resolution reviewed and acted on by City Council, and then final action by City Council after reviewing and considering the recommendation from the Community Development; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with the public and received referral comments from the Planning and Zoning Commission and the Historic Preservation Commission regarding the code amendment; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on June 9, 2014, the City Council directed staff to draft a code amendment to expand the ability to extinguish transferrable development right certificates (TDRs); and, WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code Section 26.470; and, WHEREAS, the Aspen City Council has reviewed the proposed code amendments and finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310.050; 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: Code Amendment Objective The objective of the proposed code amendments is to maintain a viable TDR program that preserves Aspen’s historic landmarks by expanding the ability to land TDRs on non-landmark single family residences. P36 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 2 of 4 Section 2: Aspen Land Use Code Section 26.710.040.D.11, Medium Density Residential (R-6) Zone District, Dimensional Requirements, in part shall read as follows: a. Each City of Aspen Historic Transferable Development Right certificate extinguished, pursuant to Section 26.535, Transferable Development Rights, shall allow an additional two hundred and fifty (250) square feet of Floor Area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the inventory of historic sites and structures shall not be eligible for this Floor Area increase. Non-conforming uses and structures shall not be eligible for this Floor Area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions: b. Non-historic properties with a net lot area of 9,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. c. Properties within the same subdivision or planned development as a sending site may be specified as eligible for up to two (2) floor area increases per residence pursuant to the subdivision or planned development approval. The properties to be specified as eligible for up to two (2) floor area increases per residence shall be located within the same subdivision or planned development so as to enhance preservation of the historic resource, considering a recommendation from the Historic Preservation Commission, shall not be located adjacent to the sending site and shall be described and depicted in the subdivision or planned development approvals granted by City Council. The total number of floor area increases permitted within the subdivision or planned development shall not exceed an aggregate total of one (1) per non-historic residence within the entire subdivision or planned development. Section 3: Aspen Land Use Code Section 26.710.050.D.10, Moderate Density Residential (R-15) Zone District, Dimensional Requirements, in part shall read as follows: Each City historic transferable development right certificate extinguished, pursuant to Chapter 26.535, Transferable development rights, shall allow an additional two hundred and fifty (250) square feet of floor area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the inventory of historic sites and structures shall not be eligible for this floor area increase. Nonconforming uses and structures shall not be eligible for this floor area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions: a. Non-historic properties with a net lot area of 15,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. P37 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 3 of 4 Section 4: Aspen Land Use Code Section 26.710.060.D.10, Moderate Density Residential (R- 15A) Zone District, Dimensional Requirements, in part shall read as follows: Each City historic transferable development right certificate extinguished, pursuant to Chapter 26.535, Transferable development rights, shall allow an additional two hundred and fifty (250) square feet of floor area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the inventory of historic sites and structures shall not be eligible for this floor area increase. Nonconforming uses and structures shall not be eligible for this floor area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions:. a. Non-historic properties with a net lot area of 15,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. Section 5: Aspen Land Use Code Section 26.710.080.D.10, Low Density Residential (R-30) Zone District, Dimensional Requirements, in part shall read as follows: Each City historic transferable development right certificate extinguished, pursuant to Chapter 26.535, Transferable development rights, shall allow an additional two hundred and fifty (250) square feet of floor area. Each residence on the parcel, excluding accessory dwelling units and carriage houses, shall be eligible for one (1) floor area increase in exchange for the extinguishment of one (1) historic TDR. Properties listed on the Inventory of Historic Landmark Sites and Structures shall not be eligible for this floor area increase. Nonconforming uses and structures shall not be eligible for this floor area increase. No more than one (1) floor area increase shall be allowed per residence, with the following exceptions:. a. Non-historic properties with a net lot area of 30,000 sf or larger that contain only a single family residence are eligible to extinguish up to three (3) historic TDRs. Section 6: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 7: Any scrivener’s errors contained in the code amendments herein, including but not limited to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 8: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a P38 VIII.a TDR Code Amendment Ordinance 33, Series 2014 Page 4 of 4 separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 9: Effective Date. In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall become effective thirty (30) days following final passage. Section 10: A public hearing on this ordinance shall be held on the 27th day of October, 2014, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 13th day of October, 2014. Attest: ____________________________ ________________________ Linda Manning, City Clerk Steven Skadron, Mayor FINALLY, adopted, passed and approved this ____________, 2014. Attest: __________________________ ___________________________ Linda Manning, City Clerk Steven Skadron, Mayor Approved as to form: ___________________________ James R. True, City Attorney P39 VIII.a TRANSFERRABLE DEVELOPMENT RIGHTS PROGRAM | MEMORANDUM TO: Mayor and City Council FROM: Hillary Seminick, Planner Technician Chris Bendon, Community Development Director MEETING DATE: July 21, 2014 RE: Transferrable Development Rights Program Update P40 VIII.a TRANSFERRABLE DEVELOPMENT RIGHTS PROGRAM | City of Aspen Transferrable Development Rights Program 2014 Update The purpose of the Transferable Development Rights (TDR) program was established in 2006to encourage preservation of historic landmarks, properties listed on the Aspen Inventory of Historic Landmark Sites and Structures, and properties identified in the Aspen Modern program. The program allows property owners to sever and convey undeveloped floor area as a separate development right to be developed on a different property within the City. A TDR can be landed on either an eligible single family home or duplex. City TDRs cannot be utilized in Pitkin County nor can a County TDR be accepted in the City. Once a TDR is established for a property; a deed restriction is placed on the property legally reducing the allowable floor area on the lot, or Sending Site. The recorded document will reduce the allowable square footage to the amount allowed by the underlying zoning less 250 sf per TDR certificate. A receiving, or Landing Site, is a property where development rights are increased in exchange for a City- extinguished TDR certificate held by the developer of the property. The value of a TDR is determined on the free market. The City does not regulate, nor guarantee, the market value of TDRs. TDRs can be landed in the R6, R15, R15a, R15b, and R30 zone districts to add 250 square feet of floor area. Only one TDR per residence can be landed (two on a property containing a duplex). TDRs can be landed in the CC, NC, MU, RMF, and RMFA zone districts to increase the unit size caps by 500 square feet. An administrative review is required for the landing of a TDR. An ordinance is required to establish the TDR certificate. City Council ordinances require two readings, the second being a public hearing. This process typically can take between 6-8 weeks. Update Over the history of the program, a total of 64 TDRs have been established; where a total of 18, or approximately 28%, have been landed at a different property. In 2013, a total of seven (7) TDRs were issued and of those, one TDR was landed. No TDRs have been issued or landed in 2014. A history of the program can be found below. Sending and landing site locations are shown in the TDR 2014 Program Update graphic. 0 2 4 6 8 10 12 2006 2007 2008 2009 2010 2011 2012 2013 TDR History 2006 through 2013 TDR Established TDR Landed P41 VIII.a TRANSFERRABLE DEVELOPMENT RIGHTS PROGRAM | A small amount of outreach was conducted on the success of the TDR Program. Mitch Hass of Hass Land Planning brought up the following summarized observations: • Clients show greatest interest in converting 500 sf of their development rights into two TDRs. • The greatest impediment to the program is the supply is greater than demand. • Market rates for a TDR may be too high, thus driving down demand. TDRs have also been used as incentives in the Aspen Modern Program. Aspen Modern is a voluntary program incentivizing the preservation of modern or midcentury buildings. Sites where a TDR was negotiated within the Aspen Modern program are indicated in the TDR 2014 Program Update map. For more on Aspen Modern designated properties please visit www.aspenmod.com. Potential Future Changes The City is considering including the use of TDRs in the Lodge Incentive Program that is currently being developed. A concept to allow additional TDRs on larger parcels is also under consideration. Additional Information For more information contact the Community Development Department at 970.429.2764 or at plannerofheday@gmail.com P42 VIII.a P 4 3 V I I I . a Regular Meeting Planning & Zoning Commission May 6, 2014 4 of the public would not have a key card to access the building which you would have to go through to get to the tunnel. Mr. Walterscheid asked what the spaces look like where the tunnel exits into on either side. Mr. Nichol said on the Chart House side it is the parking garage and on the Dancing Bear side it exits onto the second floor where the amenities are located. Mr. Gibbs asked if any thought was given to making the tunnel accessible to the public. Mr. Nichol said they did. The main users of the tunnel will be from people who are in one of the buildings and want to get to the other. He said if you are already outside you will not go into a building to go underground to get outside on the other side. Mr. Gibbs opened the public comment. Norma Dolle said she wanted to find out more about the project since it is close to their lodge. Mr. Vann said the project will be constructed and maintained by the applicant. He said the primary purpose of the tunnel is to reduce traffic from cars and pedestrians. Mr. Gibbs closed the public comment. Ms. Tygre said the public policy issue is something Council will decide but P&Z can weigh in on it. One of her concerns is the instability of the geology at the base of Aspen mountain and how it will affect the future. Ms. Quinn said there is a section of PUD criteria that relates to utilities and public facilities. Mr. Walterscheid said he has no issue with the tunnel or engineering . He said it does limit the reengineering of the storm water system. He said he thinks it is a policy question and he is not against it. Mr. Goode said he agrees with Mr. Walterscheid. He said he does not have a problem with the project. Mr. Gibbs said he is concerned with the cost to the City if down the road they need to improve the storm water system and they need to choose a more expensive option because of the tunnel. He said there should be some mechanism that Council will have where the private parties will be responsible for offsetting some of the cost. Mr. Goode made a motion to approve Resolution 7, Series of 2014 recommending an amendment to the Chart House Lodge and Dancing Bear PUD’s as proposed. Seconded by Mr. Walterscheid. Roll Call vote; Gibbs, no; Elliott, yes; Walterscheid, yes; Goode, yes; Tygre, no. Motion passed. Other Business – Code Amendments Referral – Mixed Use Zone District and Transferable Development Rights P44 VIII.a Regular Meeting Planning & Zoning Commission May 6, 2014 5 Sara Adams, planning department, said these items are referrals to Council. One of Council’s goals is to help insure the livability of Aspen for future generations by identifying strategies to expand business diversity and to enhance business sustainability. Staff wanted to look at the mixed use zone district which currently allows retail and restaurant uses but only in historic landmarks. Staff is proposing to amend that to allow retail/restaurant in any building. She stated the reason it is only allowed in landmarks is an incentive for landmarks. Ms. Adams told the commission only 3 of the 40 historic landmarks in the Main Street historic district are retail/restaurant. Staff took this to HPC and they are supportive of opening it up for any building. She stated they wanted P&Z’s feedback and outlined some questions; Does P&Z think there would be a negative impact on the historic district and landmarks by amending the zone district. Does P&Z think that allowing retail and restaurant uses in the mixed use zone district will erode the commercial core and c1. Ms. Adams said they reached out to commercial brokers and private planners and for the most part everyone was supportive. There were some concerns about the potential erosion of downtown. Mr. Goode said it is a great idea because more spaces will be available for businesses. Ms. Tygre said it would encourage restaurants to move out of the downtown core and onto Main Street because rent will be cheaper. She said restaurants get driven out by high end retail as it is and will only worsen if this is change. Mr. Walterscheid said there is nothing bad about having restaurants on Main Street. Mr. Elliott said he is in favor of opening it up. Mr. Gibbs said he agrees with Ms. Tygre’s concern that the restaurants will be pushed out by retail. He asked if they could change it to only retail instead of retail and restaurant. Ms. Adams said the intention is not to remove restaurants from downtown. Ms. Adams told the commission the TDR amendment was submitted by Neil Karbank and Alan Richman is representing Mr. Karbank. The proposal is to expand where TDR’s can land. Currently TDR’s are created only on landmark properties as an incentive to move development pressure away from the landmark. This is in increments of 250 square feet of floor area. The certificate can be sold on the free market and a non-landmark can land it. Currently you can land one per residence in the RMF and Mixed Use zones. Council prohibited this in commercial and C1 last year. Ms. Adams stated Mr. Richman is proposing two ways to use TDR’s. The first would be to increase the number of TDR’s that can land per residence. Right now a single family home can land one and a duplex two. Suggestions would be to have a minimum lot size to land one. Another idea would be to restrict landing more than one to outside the infill area. Staff suggested up to four TDR’s can land on a parcel. In the R6 zone if there is a 9,000 square foot lot it would allow a single family home and a duplex. The single family residen ce allows P45 VIII.a Regular Meeting Planning & Zoning Commission May 6, 2014 6 3,660 square feet of floor area. A duplex allows 4,080 square feet of floor area. Currently a duplex can land two TDR’s equaling 500 square feet. The square foot difference between the duplex with the TDR’s and the single family would be 920 square feet or equal to three TDR’s. She stated this is the mentality behind proposing up to four TDR’s. Ms. Adams stated it would only be for single family homes. A single family home could be the same size of a duplex if TDR’s were retired. She said the lot size varies with the zone district. Mr. Walterscheid said he is curious if Council will contemplate what the restriction on the downtown core has done to push growth outward as opposed to keeping it in town. Ms. Tygre said it is a policy question as to if we want to encourage duplexes. The proposal by Mr. Richman would be across the board allowing two per residence. Staff felt that would be too much for a duplex. Mr. Richman said there is a rational behind Staff’s proposal and he likes what they have done. Mr. Gibbs said he is unsure if two or three TDR’s for a single family home make sense. He said there is not as much space between homes anymore. He said he does not want to encourage variances for lot coverage. Mr. Richman said there is also a proposal where there are provisions in growth management where small additions are exempt from the mitigation requirements. For commercial and lodge a 250 square foot net leasable additional or up to two hotel lodge units, in a non-historic building, is allowed without mitigation. He suggests those numbers double with using a TDR. He said 500 feet becomes meaningful. Ms. Adams said Staff was not supportive since it was just trading a TDR for affordable housing mitigation. Mr. Richman said he also proposed the idea that penthouses in the commercial core be allowed only by using one TDR for every 500 square foot of penthouse. He said they pulled the idea knowing Council would not approve. Mr. Walterscheid said he would be for it. Ms. Tygre said she would like to see duplexes in R30 having more bulk. She said it will be more appropriate in some sites than other but is unsure how to make than happen. She said in general the approach is fine. Ms. Adams said there could be some sort of review process over a certain number. Ms. Tygre made a motion to adjourn, seconded by Mr. Gibbs. All in favor, meeting adjourned. P46 VIII.a Ord 31, 2014. Double Basements Page 1 of 2 MEMORANDUM TO: Mayor Skadron and City Council FROM: Chris Bendon, Community Development Director RE: “Double Basements” Code Amendment 2nd Reading Ordinance No. 31, Series of 2014 DATE: October 27, 2014 SUMMARY : The community is experiencing a new phenomenon in single-family development – the development of double-depth basements and/or extra deep basements. The City just received another application for a double basement. The second level of the basement accommodates a basketball court. The total excavation will be approximately 40 feet deep. Excavations of this nature take significantly longer and create significantly more impact on neighboring properties than traditional development. The original proposal affected the calculation of floor area for these basements. During first reading, City Council preferred simply prohibiting basements over a certain depth. Staff has drafted the ordinance to specify a depth – measured from basement floor to the finished grade surround the home. Staff recommends a depth of at least 12 feet and no more than 15 feet. A decision on maximum depth is needed. Regarding crawl spaces, staff believes the current exemption is working well and believes the new basement depth limitations should preserve the ability for a sub-basement crawl space. Staff recommends this exemption and the ordinance includes the allowance for crawl spaces. A decision on a crawl space exemption is needed. Regarding properties with steep slopes, staff does not believe a 15-foot depth limitation represents a hardship for sloped properties. Steep properties are inherently difficult to develop and present design challenges. But, a 15-foot allowance provides room to accommodate a reasonable basement. If the maximum depth is reduced to 12 feet, staff does believe some accommodation for steep properties should be made. Staff has provided an option for Council to consider. A decision on steep slopes is needed. Staff is conducting additional outreach and will provide feedback during the hearing. STAFF RECOMMENDATION : Staff recommends refinement of the ordinance and adoption. P47 VIII.b Ord 31, 2014. Double Basements Page 2 of 2 LAND USE REQUESTS AND REVIEW PROCEDURES : This meeting is to review potential changes to the City’s Land Use Code. Pursuant to Land Use Code Section 26.310, City Council is the final review authority for all code amendments. All code amendments are subject to a three-step process. This is the second step in the process: 1. Public Outreach 2. Policy Resolution by City Council indicating if an amendment should be pursued 3. Public Hearings on Ordinance outlining specific code amendments. STAFF RECOMMENDATION : Staff recommends adoption of the proposed Ordinance on. RECOMMENDED MOTION (A LL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE ): “I move to approve Ordinance No. 31, Series of 2014.” CITY MANAGER COMMENTS :_____________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ P48 VIII.b Double Basements Code Amendment Ordinance 31, Series 2014 Page 1 of 4 ORDINANCE No. 31 (Series of 2014) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AMENDMENTS TO THE CITY’S LAND USE CODE SECTION 26.575.020.D.8 REGARDING SUBGRADE AREAS OF SINGLE-FAMILY AND DUPLEX BUILDINGS. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to draft a code amendment to curail the development of so-called double basements and extra-deep basements; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall begin with Public Outreach, a Policy Resolution reviewed and acted on by City Council, and then final action by City Council after reviewing and considering the recommendation from the Community Development; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with the public and received comments from the Planning and Zoning Commission and the Historic Preservation Commission regarding the code amendment; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on October 13, 2014, the City Council directed staff to draft a code amendment to amend the calculations and measurement section of the City’s Land Use Code; and, WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code Section 26.470; and, WHEREAS, the Aspen City Council has reviewed the proposed code amendments and finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310.050; 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: Code Amendment Objective The objective of the Land Use code amendment is to curtail the development of “double basements” and extra deep basements in residential areas due to their significant construction impacts on neighboring properties and on the community. This is accomplished by “counting” areas of a structure more than 15 feet below the exterior surface as Floor Area. P49 VIII.b Double Basements Code Amendment Ordinance 31, Series 2014 Page 2 of 4 Section 2: Aspen Land Use Code sub-section 26.575.020.d.8 shall read as follows: 8. Subgrade areas . Subgrade or partially subgrade levels of a structure are included in the calculation of Floor Area based on the portion of the level exposed above grade. The percentage of the gross area of a partially subgrade level to be counted as Floor Area shall be the surface area of the exterior walls exposed above the lower of natural and finished grade divided by the total exterior wall area of that level. Subgrade stories with no exposed exterior surface wall area shall be excluded from floor area calculations. Example: If a the walls of a 2,000 square foot level are forty percent (40%) exposed above the lower of natural or finished grade then forty percent (40%) of that level, 800 square feet is counted as Floor Area. For the purposes of this section, the exterior wall area to be measured shall be the interior wall area projected outward and shall not include exterior wall areas adjacent to foundation or floors of the structure. Floor structure does not include drop ceilings. When considering multi-level subgrade spaces, adjacent interior spaces shall be considered on the same story if the vertical separation between the ceilings of the spaces is less than 50% of the distance between the floor and ceiling of either space. When a partially subgrade space also contains a vaulted ceiling within a pitched roof, the wall area shall include the area within the gable of the roof. For garages that are part of a subgrade area, the garage exemption is taken from the total gross below-grade area prior to calculating the subgrade exemption. For example, a 2,000 square foot story containing a 350 square foot garage which is 40% above grade, the calculation shall be as follows: Garage exemption – the first 250 square feet is exempt and the next 100 square feet counts 50% or 50 square feet = 300 square feet of the garage which is exempt. Subgrade exemption – 2,000 gross square feet minus 300 square feet of exempt garage space = 1,700 gross square feet multiplied by 40% = 680 square feet of that level which counts towards allowable Floor Area. For subgrade spaces with adjoining crawl spaces exempt pursuant to Section 26.575.020.D.3, a line is drawn to separate the basement space from the crawl space for the purposes of calculating the perimeter and gross area measurements. Exempt crawl space is not included in the perimeter, wall area, and floor area measurements. Option #1 Single-family and duplex structures shall contain no more than one floor level below finished grade. A basement with a stepped floor is allowed. The finished floor level shall be no more than 15 feet below finished grade. A crawl space below the basement, compliant with the limitations of Section 26.575.020.D.3, shall be exempt from this depth limitation. P50 VIII.b Double Basements Code Amendment Ordinance 31, Series 2014 Page 3 of 4 Option #2 Single-family and duplex structures shall contain no more than one floor level below finished grade. A basement with a stepped floor is allowed. The finished floor level shall be no more than 12 feet below finished grade. For properties with a median grade of 20% or greater, as measured along any lot bisector, the finished floor level shall be no more than 15 feet below finished grade. A crawl space below the basement, compliant with the limitations of Section 26.575.020.D.3, shall be exempt from this depth limitation. Section 3: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 4: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 5: Effective Date. In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall become effective thirty (30) days following final passage. Section 6: A public hearing on this ordinance shall be held on the 27th day of October, 2014, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 13 th day of October, 2014. Attest: __________________________ ____________________________ Linda Manning, City Clerk Steven Skadron, Mayor FINALLY, adopted, passed and approved ___, 2014. P51 VIII.b Double Basements Code Amendment Ordinance 31, Series 2014 Page 4 of 4 Attest: __________________________ ___________________________ Linda Manning, City Clerk Steven Skadron, Mayor Approved as to form: ___________________________ James R. True, City Attorney P52 VIII.b Double Basements Policy Direction Exhibit B Page 1 of 1 Exhibit B: Staff Findings 26.310.040. Amendments to the Land Use Code standards of review – Initiation In reviewing a request to pursue an amendment to the text of this Title, per Section 26.310.020(B)(2), Step Two – Public Hearing before City Council , the City Council shall consider: A. Whether there exists a community interest to pursue the amendment. Staff Findings: Staff believes there is a community interest in limiting extra deep excavations. Excavations of significantly deep basements and so-called double basements are significantly longer and more impactful to neighbors. Minimizing construction impacts to those reasonable expected with traditional construction is within the public interest. Limiting double basement is also included as a suggested code amendment in the 2012 Aspen Area Community Plan. Staff finds this criterion to be met. B. Whether the objectives of the proposed amendment furthers an adopted policy, community goal, or objective of the City including, but not limited to, those stated in the Aspen Area Community Plan. Staff Findings: The 2012 Aspen Area Community Plan calls for “a renewed focus on managing the impacts of intense construction activity.” The plan addresses the development of double basements – “ Amend the City and County land use codes to reduce or eliminate FAR exemptions for items such as multi-level sub-grade space and garages.” Staff finds this criterion to be met. C. Whether the objectives of the proposed amendment are compatible with the community character of the City and in harmony with the public interest and the purpose and intent of this Title. Staff Findings: The objective of the proposed amendment is to curtail the development of “double basements” in residential areas due to their significant construction impacts. Staff finds that this objective is in harmony with the public interest and the purpose of Title 26. Staff finds this criterion to be met. P53 VIII.b Page 1 of 2 MEMORANDUM TO: Mayor and City Council FROM: Don Taylor, Director of Finance THRU: Steve Barwick, City Manager DATE OF MEMO: October 6, 2014 MEETING DATE: October 27, 2014 RE: Authorizing the Issuance of 2014 Parks and Recreation Bonds REQUEST OF COUNCIL: This is for the City Council to consider authorizing, as an emergency ordinance, the issuance of $5,490,000 in Parks, recreation and Open Space Bonds for the purpose of open space acquisition and other Parks projects and for the purpose of advance refunding certain 2005 Parks, recreation and open space bonds for the purpose of lowering the interest rate cost of those bonds. The issuance is expected to generate approximately $430,000 in additional premiums. PREVIOUS COUNCIL ACTION: On November 7 th , 2000 a ballot question was voted on by the electorate to approve an additional .5% sales tax and the authority to issue bonded debt up to $38,000,000. City Council has also authorized the purchase of the Dolincek property which is currently under contract. BACKGROUND: The additional .5% sales tax was authorized at the November 2000 general election along with the authority to issue bonds up to $38,000,000 so that the City would have the flexibility to raise capital to purchase rapidly disappearing open space and to develop parks and trail projects. The City has issued bonds against this authorized amount over the last 14 years and this will be the last issuance against the authorization. The .5% sales tax sunsets at the end of 2025. DISCUSSION: The issuance of the bonds are for two primary purposes. First is to provide capital for the acquisition of property known as the Dolincek property near the base of Lift 1A. The acquisition price for this property is approximately 2.5 million of which $2,250,000 would come from this bond issue. There are then about $2,100,000 in other park projects as follows. Mall Upgrades 2016 $ 900,000 Herron Park/Neale Ave/Rio Grande Trailhead Improvement Proj. 2015 $ 120,000 Hole 2 Pond Maintenance 2015 $ 100,000 P54 VIII.c Page 2 of 2 Maroon Creek Trail Improvements 2016 $ 160,000 New Parcel Acquisition ($2.5M less $240K from prior bonds) 2014 $ 2,260,000 Southside Highway 82 Trail Development 2016 $ 850,000 The Ordinance is written so that the uses of funds can be adjusted by the city council if there priorities were to change between now and when the projects might be undertaken. This gives the City Council flexibility as the exact project costs are still in development. The new money portion of this bond issue will generate $4,390,000 including premiums on the bonds. The second part of this financing is to refinance existing outstanding debt. A total of $1,310,000 of currently outstanding 2005 Parks, Recreation and Open Space bonds would be defeased through the funding of an escrow. The interest cost for the bonds necessary to fund the escrow will be less than the current interest cost on the outstanding bonds and the city would save $147,000 on a net present value basis in interest costs. Part of what makes this work is the ability to spread the transaction costs over the two component parts of this transaction. FINANCIAL/BUDGET IMPACTS: The new money portion of the bond issue will require annual debt service costs in the future from $401,700 a year to $529,000 a year depending on final pricing. The refunding portion of the bond issue will save the City approximately $147,000 over what would have been the remaining life of the 2005 bonds, which finally mature in 2025. RECOMMENDED ACTION: We recommend approval of this ordinance at second reading. ALTERNATIVES: The City could postpone issuance of bonds until a later date or cancel the planned issuance and restructure its Parks, Recreation and Open Space capital plan to meet its expected cash flow on a pay as you go basis. PROPOSED MOTION: I move approval of the ordinance authorizing the issuance of bonds for the purpose of Parks Recreation and Open Space projects and for the partial refunding of outstanding 2005 Parks, Recreation and Open Space bonds in an amount not to exceed $6,000,000. CITY MANAGER COMMENTS: ATTACHMENTS: Sources and Uses of Funds P55 VIII.c CERTIFIED RECORD OF PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO RELATING TO AN ORDINANCE AUTHORIZING THE ISSUANCE OF: City of Aspen, Colorado Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds Series 2014 This cover page is not a part of the following ordinance and is included solely for the convenience of the reader. P56 VIII.c EMERGENCY ORDINANCE NO. 32 (SERIES OF 2014) AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF ASPEN, COLORADO, OF ITS PARKS AND OPEN SPACE SALES TAX REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014, FOR THE PURPOSE OF ADVANCE REFUNDING A PORTION OF THE CITY’S PARKS AND OPEN SPACE SALES TAX REVENUE BONDS, SERIES 2005B AND PURCHASING AND IMPROVING TRAIL, RECREATION AND OPEN SPACE PROPERTIES AND ANCILLARY FACILITIES; PRESCRIBING THE FORM OF THE SERIES 2014 BONDS; PROVIDING FOR THE PAYMENT OF THE SERIES 2014 BONDS FROM THE SAME REVENUES PLEDGED TO THE PAYMENT OF THE SERIES 2005B BONDS TO BE REFUNDED (CONSISTING OF THE CITY’S ORIGINAL 1.0% OPEN SPACE SALES TAX AND ITS ADDITIONAL 0.5% OPEN SPACE SALES TAX); PROVIDING OTHER DETAILS AND APPROVING OTHER DOCUMENTS IN CONNECTION WITH THE SERIES 2014 BONDS; DELEGATING THE AUTHORITY TO MAKE A FINAL DETERMINATION OF CERTAIN TERMS OF THE SERIES 2014 BONDS; DIRECTING OFFICERS OF THE CITY TO EXECUTE CERTAIN DOCUMENTS IN CONNECTION WITH SUCH REFUNDING BONDS; AND DECLARING AN EMERGENCY WHEREAS, the City of Aspen (the “City”), in the County of Pitkin and State of Colorado, is a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the home rule charter of the City (as more particularly defined in Section 1 herein, the “Charter”) (all capitalized terms used and not otherwise defined in the recitals hereof shall have the meaning assigned in Section 1 of this Ordinance); and WHEREAS, under the Charter, the City is possessed of all powers which are necessary, requisite or proper for the government and administration of its local and municipal matters, all powers which are granted to home rule municipalities by the Colorado Constitution, and all rights and powers that now or hereafter may be granted to municipalities by the laws of the State of Colorado; and WHEREAS, pursuant to Section 10.6 of the Charter, the City Council of the City (the “City Council”) may authorize, by ordinance, without an election, the issuance of refunding bonds for the purpose of refunding and providing for the payment of the City’s outstanding bonds; WHEREAS, pursuant to the provisions of Article 56 of Title 11, Colorado Revised Statutes, as amended (the “Refunding Act”), the City is authorized to issue refunding bonds for the purpose of refunding, paying and discharging any part of the Series 2005B Bonds (described below) and for one or more other purposes, including but not limited to effecting certain economies for the City, subject to the terms, conditions and limitations in the Refunding Act; and P57 VIII.c 2 WHEREAS, Article X, Section 20 of the Colorado Constitution (“TABOR”) provides that voter approval in advance is required for the creation of any district (as such term is defined in TABOR, which includes governmental entities such as the City) direct or indirect debt or other multiple-fiscal year financial obligation whatsoever except for refinancing district bonded debt at a lower interest rate; and WHEREAS, pursuant to the City’s Ordinance No. 16, Series of 1970 (the “Original Parks and Open Space Sales Tax Ordinance”), the City levies a one percent (1.00%) sales tax (the “Original Parks and Open Space Sales Tax”) on all sales of tangible property and services specified in Section 23.32.090 of the City’s Municipal Code for the payment of food tax refunds, and for the acquisition of real property including open space or construction of capital improvements for municipal purposes, or the payment of indebtedness incurred for such acquisition or construction of capital improvements for municipal purposes, for the expenditures necessary to protect such property against loss, damage or destruction; and WHEREAS, receipts from the Original Parks and Open Space Sales Tax are required by Section 23.32.060(c)(2) of the City’s Municipal Code to be set aside in a separate fund entitled “Parks and Open Space Fund” and expended by the City Council solely for the acquisition of parks, trails and open space real property, for the construction of improvements on any real property, owned or purchased by the City for parks, trails and open space purposes, for the maintenance of real property owned by the city and used for parks, trails and open space, and for payment of indebtedness incurred for acquisition or improvement of parks, trails and open space real property, food tax refunds payable by the City, and for such expenditures as may be necessary to protect real property or the improvements thereon owned by the City for parks, trails and open space purposes and for the payment of sales tax revenue bonds issued by the City; and WHEREAS, the following question (the “Ballot Question”) regarding the imposition of an additional 0.5% sales tax (as defined herein, the “Additional Parks and Open Space Sales Tax” and, collectively with the Original Parks and Open Space Sales Tax, the “Parks and Open Space Sales Tax”) and the issuance of sales tax revenue bonds for the purpose of buying, improving and maintaining trail, recreation and open space properties and ancillary facilities was submitted to the electors of the City at the City’s November 7, 2000 election, and was approved by a majority of those voting on the question: SHALL CITY OF ASPEN TAXES BE INCREASED UP TO $2,280,000.00 (FIRST FULL FISCAL YEAR DOLLAR INCREASE, NET OF ANY CONSTITUTIONALLY REQUIRED TAX CUTS) ANNUALLY BY THE IMPOSITION OF AN ADDITIONAL 0.5% SALES TAX COMMENCING ON JANUARY 1, 2001, AND TERMINATING ON DECEMBER 31, 2025, AND SHALL CITY OF ASPEN DEBT BE INCREASED BY AN AMOUNT NOT TO EXCEED $38.0 MILLION WITH A MAXIMUM REPAYMENT COST OF $91,065,000.00 FOR THE PURPOSE OF BUYING, IMPROVING AND MAINTAINING TRAIL, RECREATION AND OPEN SPACE PROPERTIES AND ANCILLARY FACILITIES; P58 VIII.c 3 SUCH DEBT TO CONSIST OF REVENUE BONDS PAYABLE FROM CITY SALES TAXES THAT BEAR INTEREST, MATURE, ARE SUBJECT TO REDEMPTION, WITH OR WITHOUT PREMIUM, AND ARE ISSUED, DATED, AND SOLD, AT SUCH TIMES AS NEEDED TO FINANCE THE PURCHASES OR IMPROVEMENTS AS DESCRIBED ABOVE, AT SUCH PRICES (AT, ABOVE OR BELOW PAR) AND IN SUCH MANNER AND CONTAIN SUCH TERMS AS THE CITY COUNCIL MAY DETERMINE; AND SHALL ANY EARNINGS (REGARDLESS OF AMOUNT) FROM THE INVESTMENT OF THE PROCEEDS OF SUCH TAXES AND SUCH BONDS CONSTITUTE A VOTER-APPROVED REVENUE CHANGE? ; and WHEREAS, the City, pursuant to Ordinance No. 7, Series of 2001 (the “Additional Parks and Open Space Sales Tax Ordinance” and, together with the Original Parks and Open Space Sales Tax Ordinance, the “Parks and Open Space Tax Ordinances”), has since January 1, 2001 levied the Additional Parks and Open Space Sales Tax and, pursuant to Section 23.32.060(c)(6) of the City’s Municipal Code, deposits the revenues of the Additional Parks and Open Space Sales Tax in the Parks and Open Space Fund; and WHEREAS, on August 21, 2001, pursuant to Ordinance No. 29 (Series of 2001) (the “Series 2001 Ordinance”), the City issued the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Bonds, Series 2001 (the “Series 2001 Bonds”), originally issued in the aggregate principal amount of $10,780,000, none of which remains outstanding, for the purpose of providing funds for buying, improving and maintaining trail, recreation and open space properties and ancillary facilities; and WHEREAS, on March 24, 2005, pursuant to its Ordinance No. 19 (Series of 2005) (the “Series 2005 Ordinance”), the City issued the City of Aspen, Colorado, Sales Tax Revenue Refunding Bonds, Series 2005 (the “Series 2005 Bonds”), originally issued in the aggregate principal amount of $12,380,000 and presently outstanding in the aggregate principal amount of $5,610,000, for the purpose of refunding the City’s Sales Tax Revenue Bonds, Series 1999; and WHEREAS, on October 12, 2005, pursuant to its Ordinance No. 42 (Series of 2005) (the “Series 2005B Ordinance”), the City issued the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Bonds, Series 2005B (the “Series 2005B Bonds”), originally issued in the aggregate principal amount of $14,900,000 and presently outstanding in the aggregate principal amount of $1,540,000, for the purpose of buying, improving and maintaining trail, recreation and open space properties and ancillary facilities; and WHEREAS, on December 15, 2009, pursuant to its Ordinance No. 24 (Series of 2009) (the “Series 2009 Ordinance”), the City issued the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding Bonds, Series 2009 (the “Series 2009 Bonds”), originally issued in the aggregate principal amount of $7,070,000 and presently outstanding in the P59 VIII.c 4 aggregate principal amount of $5,665,000, for the purpose of refunding a portion of the Series 2001 Bonds (the remainder of which Series 2001 Bonds have now been paid); and WHEREAS, on September 10, 2012, pursuant to its Ordinance No. 22 (Series of 2012) (the “Series 2012 Ordinance”), the City issued the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds, Series 2012 (the “Series 2012 Bonds”), originally issued in the aggregate principal amount of $9,385,000 and presently outstanding in the aggregate principal amount of $9,325,000, for the purpose of (i) buying, improving and maintaining trail, recreation and open space properties and ancillary facilities; and (ii) refunding all of the Series 2005B Bonds maturing on November 1, 2019, November 1, 2020, November 1, 2021 and $530,000 of the Series 2005B Bonds maturing on November 1, 2022; and WHEREAS, on November 26, 2012, pursuant to its Ordinance No. 26 (Series of 2012) (the “Series 2013 Ordinance”), the City issued the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding Bonds, Series 2013 (the “Series 2013 Bonds”), originally issued and currently outstanding in the aggregate principal amount of $8,295,000, for the purpose of refunding $780,000 of the Series 2005B Bonds maturing on November 1, 2022, and all of the Series 2005B Bonds maturing on November 1, 2023, November 1, 2024 and November 1, 2025; and WHEREAS, the net revenues of the Parks and Open Space Sales Tax are pledged to the payment of the principal of and interest on the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds, and the Series 2013 Bonds pursuant to the Series 2005 Ordinance, the Series 2005B Ordinance, the Series 2009 Ordinance, the Series 2012 Ordinance, and the Series 2013 Ordinance respectively; and WHEREAS, the Series 2005B Bonds maturing on or before November 1, 2015 are not subject to redemption prior to their respective maturities, and the Series 2005B Bonds maturing on and after November 1, 2016 are subject to redemption prior to their maturity, at the option of the City, on November 1, 2015 at a redemption price equal to the principal amount of the bonds so redeemed, plus accrued interest to the redemption date; and WHEREAS, the City Council of the City has determined that it is in the best interests of the City to refund a portion of the Series 2005B Bonds to be determined by the Mayor, City Manager or Finance Director in accordance with the delegation authority set forth herein (as more particularly defined herein, the “Refunded Bonds”), and for the purpose of refunding such Refunded Bonds at a lower interest rate, funding costs of the Project, acquiring a reserve fund surety bond or funding a reserve fund, and to fund costs of issuance, to issue the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds, Series 2014 (the “Series 2014 Bonds”); and WHEREAS, pursuant to the delegation authority herein, in the event that the principal amount of the Series 2014 Bonds allocable to the refunding of the Refunded Bonds exceeds the principal amount of the Refunded Bonds, in accordance with Section 11-56-107, C.R.S., the principal amount of such allocable portion of the Series 2014 Bonds, when combined with the principal amount of the Series 2005B Bonds outstanding which is not being refunded, will not exceed the total original authorized principal amount of the Series 2005B Bonds, such that such P60 VIII.c 5 portion of the Series 2014 Bonds allocated to the refunding of the Series 2005B Bonds will constitute a refunding at a lower interest rate not requiring electoral authorization in accordance with TABOR and the Refunding Act; and WHEREAS, the portion of the Series 2014 Bonds allocated to the funding of the Project will require electoral authorization in accordance with TABOR and the Refunding Act, and the City has determined that, based on the limitation of the principal amount thereof set forth herein, the City has sufficient electoral authorization remaining under the Ballot Question for the same; WHEREAS, the Series 2014 Bonds will be secured by a lien on the Parks and Open Space Sales Tax revenue on parity with the lien thereon of the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds and the Series 2013 Bonds; and WHEREAS, a portion of the proceeds derived from the sale of the Series 2014 Bonds shall be deposited in the Escrow Account solely for payment of the Refunded Bonds and shall be applied by the Escrow Agent to refund, pay and discharge the Refunded Bonds as shall be more particularly set forth in the Escrow Agreement and the Sale Certificate; and WHEREAS, the City Council has been presented with a proposal from Stifel Nicolaus & Company, Incorporated, of Denver, Colorado, to purchase the Series 2014 Bonds upon specified terms and conditions, the final terms and conditions of which are to be set forth in the Bond Purchase Agreement in accordance with the Sale Certificate, and, after consideration, the City Council has determined that the negotiated sale of the Series 2014 Bonds, subject to the parameters set forth herein, to said company is to the best advantage of the City; and WHEREAS, no member of the City Council has a potential conflict of interest in connection with the authorization, issuance, sale or use of proceeds of the Series 2014 Bonds; and WHEREAS, pursuant to Section 4.11 of the Charter, the City is authorized to adopt emergency ordinances for the preservation of public property, health, peace, or safety; and WHEREAS, there is a need for issuing the Series 2014 Bonds in a timely manner in order to take advantage of existing market conditions and obtain the greatest savings to the City’s inhabitants, thus freeing up City revenues which can be used for the purposes of preserving public property, health, peace and safety; and WHEREAS, this Ordinance is being adopted to authorize the issuance, sale and delivery of the Series 2014 Bonds, to provide for the payment of the Series 2014 Bonds and to provide the details of the Series 2014 Bonds; and WHEREAS, there has been presented to the City Council, among other things, substantially final forms of (a) the Preliminary Official Statement, (b) Paying Agent Agreement, (c) the Bond Purchase Agreement (subject to completion in accordance with the terms of the Sale Certificate), (d) the Escrow Agreement, and (e) the Continuing Disclosure Undertaking; and WHEREAS, subject to the limitations set forth in this Ordinance, the City Council desires, as provided in the Supplemental Public Securities Act, Part 2 of Article 57 of Title 11 of P61 VIII.c 6 the Colorado Revised Statutes, as amended, to delegate the authority to the Mayor, the City Manager, or the Finance Director, to identify the Refunded Bonds and to determine certain provisions of the Series 2014 Bonds to be set forth in the Sale Certificate, in accordance with the provisions of this Ordinance; and WHEREAS, the City Council also desires to delegate the authority to the City Manager, or the Finance Director the independent authority to determine whether it is economically beneficial to obtain a financial guaranty insurance policy insuring the payment of the Series 2014 Bonds and, if so determined, to identify the Bond Insurer and execute the Commitment; to determine whether a surety bond is to be obtained to secure payments on the Series 2014 Bonds, and to execute and deliver the Bond Purchase Agreement and approve certain terms thereof, all in accordance with the provisions of this Ordinance; NOW, THEREFORE, BE IT ORDAINED by the City Council of City of Aspen, Colorado: Section 1. Definitions . The following terms shall have the following meanings as used in this Ordinance: “Additional Parks and Open Space Sales Tax ” means the 0.5% sales tax that is levied in addition to the Original Parks and Open Space Sales Tax by the City pursuant to the authority granted by the Ballot Question, the Additional Parks and Open Space Sales Tax Ordinance and Section 23.32.060(c)(7) of the City’s Municipal Code. It is acknowledged that such 0.5% sales tax terminates on December 31, 2025. Any extensions or replacements thereof, if any, shall not constitute Additional Parks and Open Space Sales Tax for purposes of this Ordinance and the proceeds of any such extension or replacement thereof shall not constitute Pledged Revenues hereunder. “Additional Parity Bonds ” means any bonds or other obligations (which may or may not be multiple-fiscal year financial obligations) permitted to be issued pursuant to Section 13 hereof with a lien that is equal and on a parity with the lien of the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds, the Series 2013 Bonds and the Series 2014 Bonds on the Pledged Revenues, the Bond Fund and the Revenue Fund. “Ballot Question ” means the ballot question approved by City voters on November 7, 2000 authorizing the Additional Parks and Open Space Sales Tax. “Bond Counsel ” means (a) as of the date of issuance of the Series 2014 Bonds, Butler Snow LLP, and (b) as of any other date, Butler Snow LLP or such other attorneys selected by the City with nationally recognized expertise in the issuance of municipal bonds. “Bond Fund ” means the “City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Bonds, Bond Fund” which fund is reaffirmed as such in Section 10(b) hereof. “Bond Insurance Policy ” means the municipal bond insurance policy, if any, issued by the Bond Insurer insuring the payment when due of the principal of and interest on the Series 2014 Bonds as provided therein. P62 VIII.c 7 “Bond Insurer ” means the entity, if any, set forth in the Sale Certificate, or any successor thereto. “Bond Purchase Agreement ” means the agreement between the City and the Underwriter concerning the purchase of the Bonds by the Underwriter. “Bonds ” means, collectively, the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds, the Series 2013 Bonds, the Series 2014 Bonds, and any Additional Parity Bonds. “Business Day ” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State are authorized or obligated by law or executive order to be closed for business. “Charter ” means the Charter of the City of Aspen, adopted June 16, 1970, as amended. “City ” means the City of Aspen, Colorado, and any successor thereto. “City Council ” means the City Council of the City, and any successor body. “Code ” means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein shall be deemed to include the United States Treasury Regulations proposed or in effect thereunder and applicable to the Series 2014 Bonds or the use of proceeds thereof, unless the context clearly requires otherwise. “Commitment ” means, collectively, those certain offers, if any, to issue the Bond Insurance Policy, designated as the Commitment, issued by the Bond Insurer. “Defeasance Securities ” means Permitted Investments that are bills, certificates of indebtedness, notes, bonds or similar securities which are direct non-callable obligations of the United States of America or which are fully and unconditionally guaranteed as to the timely payment of principal and interest by the United States of America. “Escrow Account ” means the special account designated “Parks and Open Space Sales Tax Revenue Refunding Bonds, Series 2014, Escrow Account” to be maintained by the Escrow Agent in accordance with the Escrow Agreement and the provisions hereof entitled “Escrow Account.” “Escrow Agent” means UMB Bank, n.a., Denver, Colorado, in its capacity as escrow agent under the Escrow Agreement, its successors and assigns. “Escrow Agreement” means the Refunding Escrow Agreement between the City and the Escrow Agent, relating to the deposit of funds thereunder for the purpose of defeasing the Refunded Bonds. “Event of Default ” means any of the events specified in Section 24 hereof. P63 VIII.c 8 “Interest Payment Date ” means any date on which a payment of principal of, premium, if any, or interest on the Bonds is due pursuant to Section 3(c) hereof. “Moody’s ” means Moody’s Investor Service and its successors. “Ordinance ” means this Ordinance, which authorizes the issuance of the Series 2014 Bonds, including any amendments or supplements hereto. “Original Parks and Open Space Sales Tax ” means the 1.0% Open Space Sales Tax levied by the City pursuant to the Original Parks and Open Space Sales Tax Ordinance. “Original Parks and Open Space Sales Tax Ordinance ” means the City’s Ordinance No. 16, Series of 1970. “Outstanding ” means, as of any date, all Bonds, except the following: (a) any Bond cancelled by the City or the Paying Agent, or otherwise on the City’s behalf, at or before such date; (b) any Bond held by or on behalf of the City; (c) any Bond for the payment or the redemption of which moneys or Defeasance Securities sufficient to meet all of the payment requirements of the principal of, interest on, and any premium due in connection with the redemption of such Bond to the date of maturity or any redemption date thereof, shall have theretofore been deposited in trust for such purpose in accordance with Section 23 hereof; and (d) any lost, apparently destroyed, or wrongfully taken Bond in lieu of or in substitution for which another bond or other security shall have been executed and delivered. “Owner ” means the Person or Persons in whose name or names a Series 2014 Bond is registered on the registration books maintained by the Paying Agent pursuant hereto. “Parks and Open Space Fund ” means the City’s Parks and Open Space Fund maintained by the City pursuant to Section 23.32.060(c)(2) of the City’s Municipal Code. “Parks and Open Space Sales Tax ” means, collectively, the Original Parks and Open Space Sales Tax and the Additional Parks and Open Space Sales Tax. “Parks and Open Space Sales Tax Ordinances ” means, collectively the Original Parks and Open Space Sales Tax Ordinance and the Additional Parks and Open Space Sales Tax Ordinance. “Paying Agent ” means UMB Bank, n.a., and its successors in interest or assigns approved by the City. P64 VIII.c 9 “Permitted Investments ” means any investment which is permitted for investment of City Funds by the Charter and all other applicable laws which are included on the following list: (a) Cash (insured at all times by the Federal Deposit Insurance Corporation); (b) Direct obligations of (including obligations issued or held in book entry form on the books of) the Department of the Treasury of the United States of America; (c) obligations of any of the following federal agencies which obligations represent full faith and credit of the United States of America, including: — Export - Import Bank — Rural Economic Community Development Administration — U.S. Maritime Administration — Small Business Administration — U.S. Department of Housing & Urban Development (PHA’s) — Federal Housing Administration — Federal Financing Bank; (d) direct obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the United States of America: senior debt obligations issued by the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC); obligations of the Resolution Funding Corporation (REFCORP); senior debt obligations of the Federal Home Loan Bank System; and senior debt obligations of other Government Sponsored Agencies approved by Ambac; (e) U.S. dollar denominated deposit accounts, federal funds and banker’s acceptances with domestic commercial banks which have a rating on their short-term certificates of deposit on the date of purchase of “A 1” or “A 1+” by S&P and “P 1” by Moody’s and maturing no more than 360 days after the date of purchase, where ratings on holding companies are not considered as the rating of the bank; (f) commercial paper which is rated at the time of purchase in the single highest classification, “A 1+” by S&P and “P 1” by Moody’s, and which matures not more than 270 days after the date of purchase; (g) investments in a money market fund rated “AAAm” or “AAAm—G” or better by S&P; (h) pre-refunded municipal obligations defined as follows: P65 VIII.c 10 Any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice; and (i) which are rated, based on an irrevocable escrow account or fund (the “escrow”), in the highest rating category of S&P and Moody’s or any successors thereto; or (ii)(A) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or obligations described in paragraph (a) above, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate; and (B) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to above, as appropriate; (i) municipal obligations rated “Aaa/AAA”, or general obligations of states with a rating of at least “A2/A”, or higher by both Moody’s and S&P; and (j) investment agreements and other forms of investments approved in writing by the Bond Insurer. “Person ” means a corporation, firm, other body corporate, partnership, association or individual and also includes an executor, administrator, trustee, receiver or other representative appointed according to law. “Pledged Revenues ” means, for each fiscal year, all of the proceeds of the Parks and Open Space Sales Tax after deduction of the reasonable and necessary costs and expenses of collecting and enforcing the Parks and Open Space Sales Tax, if any. “Project ” means the purchase and improvement of trails, recreation and open space properties and ancillary facilities, to the extent proceeds of the Series 2014 Bonds may be expended to such purposes in accordance with the Ballot Question. “Rebate Fund ” means the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds, Series 2014, Rebate Fund created in Section 10 hereof. “Refunded Bond Requirements ” means the principal, redemption premium, if any, and interest due in connection with the Refunded Bonds, at maturity or upon prior redemption, as set forth in the Escrow Agreement. “Refunded Bonds ” means such principal amounts and maturities of the Series 2005B Bonds as are set forth and designated as the “Refunded Bonds” in the Sale Certificate. “Refunding Act ” means the Public Securities Refunding Act codified in Article 56 of Title 11, Colorado Revised Statutes, as amended. P66 VIII.c 11 “Reserve Fund ” means, as the context requires, any one or more of the Series 2005 Reserve Fund, the Series 2005B Reserve Fund, the Series 2009 Reserve Fund, the Series 2012 Reserve Fund, the Series 2013 Reserve Fund, the Series 2014 Reserve Fund, and/or any reserve fund or funds established for Additional Parity Bonds. “Reserve Fund Contract ” has the meaning specified in Section 16(c)(i) hereof. “Reserve Fund Requirement ” means, as of any date on which it is calculated, with respect to each series of Bonds, the least of (a) 10% of the principal amount of such series of Bonds, (b) the maximum annual debt service in any calendar year on the Outstanding Bonds of such series or (c) 125% of the average annual debt service on the Bonds of such series; provided, however, that the Reserve Fund Requirement may be reduced if, in the opinion of Bond Counsel, the funding or maintenance of it at the level otherwise determined pursuant to this definition will adversely affect the exclusion from gross income tax for federal income tax purposes of interest on any of the Bonds. “Revenue Fund ” means the “City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Bonds Revenue Fund” which fund is reaffirmed as such pursuant to Section 10(b) hereof. “Sale Certificate” means the certificate executed by any of the Mayor, the City Manager or the Finance Director under the authority delegated pursuant to this Ordinance, which sets forth, among other things, the prices at which the Bonds will be sold, the delivery date of the Bonds, interest rates and annual maturing principal for the Bonds, as well as the dates on which the Bonds may be redeemed and the redemption prices therefor, the identity of the Bond Insurer (if any), additional provisions required by the Bond Insurer, including terms of the Commitment, and details regarding any Series 2014 Surety Bond. “S&P ” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc., and its successors. “Series 1999 Ordinance ” means the City’s Ordinance No. 31, Series of 1999, pursuant to which the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Bonds, Series 1999 were issued (all of which were subsequently advance refunded with proceeds of the Series 2005 Bonds). “Series 2005 Reserve Fund” means the Reserve Fund established for the Series 2005 Bonds pursuant to the Series 2005 Ordinance. “Series 2005B Reserve Fund” means the Reserve Fund established for the Series 2005B Bonds pursuant to the Series 2005B Ordinance. “Series 2009 Reserve Fund” means the Reserve Fund established for the Series 2009 Bonds pursuant to the Series 2009 Ordinance. “Series 2012 Reserve Fund ” means the Reserve Fund established for the Series 2012 Bonds pursuant to the Series 2012 Ordinance. P67 VIII.c 12 “Series 2013 Reserve Fund ” means the Reserve Fund established for the Series 2013 Bonds pursuant to the Series 2013 Ordinance. “Series 2014 Reserve Fund ” means the City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding Bonds, Series 2014, Reserve Fund created in Section 10(a)(ii) hereof. “Series 2014 Surety Bond ” means the Reserve Fund Contract, if any, issued by the Bond Insurer guaranteeing certain payments from the Series 2014 Reserve Fund with respect to the Series 2014 Bonds. “State ” means the State of Colorado. “Supplemental Act ” means the Supplemental Public Securities Act codified in Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended. “Underwriter ” means Stifel Nicolaus & Company, Incorporated, the original purchaser of the Bonds. Section 2. Authorization and Purpose of Series 2014 Bonds . Pursuant to and in accordance with the Constitution of the State, the Charter, the Supplemental Act and the Refunding Act, the City hereby authorizes, and directs that there shall be issued, the “City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds, Series 2014” in the aggregate principal amount set forth in the Sale Certificate (the “Series 2014 Bonds”) for the purpose of funding the costs of the Project, refunding the Refunded Bonds, purchasing the Series 2014 Surety Bond (if any) or otherwise funding the Series 2014 Reserve Fund, and paying the costs of issuance of the Series 2014 Bonds. Section 3. Series 2014 Bond Details . (a) Registered Form, Denominations, Original Dated Date and Numbering . The Series 2014 Bonds shall be issued as fully registered bonds in the denominations set forth in the Sale Certificate, shall be dated as of the date set forth in the Sale Certificate, shall be consecutively numbered in the manner determined by the Paying Agent and shall be registered in the names of the Persons identified in the registration books of the City maintained by the Paying Agent. (b) Maturity Dates, Principal Amounts and Interest Rates . The Series 2014 Bonds shall mature on November 1 of the years and in the principal amounts, and shall bear interest at the rates per annum (calculated based on a 360-day year of twelve 30-day months) set forth in the Sale Certificate. (c) Accrual and Dates of Payment of Interest . Interest on the Series 2014 Bonds shall accrue at the rates set forth in the Sale Certificate from the later of the original dated date or the latest interest payment date (or in the case of defaulted interest, the latest date) to which interest has been paid in full and shall be payable on May 1 and November 1 of each year, commencing on the date set forth in the Sale Certificate. P68 VIII.c 13 (d) Manner and Form of Payment . Principal of, premium, if any, and the final installment of interest on each Series 2014 Bond shall be payable to the Owner thereof upon presentation and surrender of such bond at the principal office of the Paying Agent in the city identified in the definition of Paying Agent in Section 1 hereof. Interest (other than the final installment of interest) on each Series 2014 Bond shall be payable by check or draft of the Paying Agent mailed on the interest payment date to the Owner thereof as of the close of business on the fifteenth day (whether or not such day is a Business Day) of the month preceding the month in which the Interest Payment Date occurs. All payments of the principal of, premium, if any, and interest on the Series 2014 Bonds shall be made in lawful money of the United States of America. (e) Book-Entry Registration . Notwithstanding any other provision hereof, the Series 2014 Bonds shall be delivered only in book-entry form registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), New York, New York, acting as securities depository of the Series 2014 Bonds and principal of, premium, if any, and interest on the Series 2014 Bonds shall be paid by wire transfer to DTC; provided, however, if at any time the Paying Agent determines, and notifies the City of its determination, that DTC is no longer able to act as, or is no longer satisfactorily performing its duties as, securities depository for the Series 2014 Bonds, the Paying Agent may, at its discretion, either (i) designate a substitute securities depository for DTC and reregister the Series 2014 Bonds as directed by such substitute securities depository or (ii) terminate the book-entry registration system and reregister the Series 2014 Bonds in the names of the beneficial owners thereof provided to it by DTC. Neither the City nor the Paying Agent shall have any liability to DTC, Cede & Co., any substitute securities depository, any Person in whose name the Series 2014 Bonds are reregistered at the direction of any substitute securities depository, any beneficial owner of the Series 2014 Bonds or any other Person for (A) any determination made by the Paying Agent pursuant to the proviso at the end of the immediately preceding sentence or (B) any action taken to implement such determination and the procedures related thereto that is taken pursuant to any direction of or in reliance on any information provided by DTC, Cede & Co., any substitute securities depository or any Person in whose name the Series 2014 Bonds are reregistered. Section 4. Form of Series 2014 Bonds . The Series 2014 Bonds shall be in substantially the form set forth in Appendix A hereto, with such changes thereto, not inconsistent herewith, as may be necessary or desirable and approved by the officials of the City executing the same (whose manual or facsimile signatures thereon shall constitute conclusive evidence of such approval). Although attached as an appendix for the convenience of the reader, Appendix A is an integral part of this Ordinance and is incorporated herein as if set forth in full in the body of this Ordinance. Section 5. Registration, Transfer and Exchange of Series 2014 Bonds . The Paying Agent shall maintain registration books in which the ownership, transfer and exchange of Series 2014 Bonds shall be recorded. The Person in whose name any Series 2014 Bond shall be registered on such registration books shall be deemed to be the absolute owner thereof for all purposes, whether or not payment on any Series 2014 Bond shall be overdue, and neither the City nor the Paying Agent shall be affected by any notice or other information to the contrary. P69 VIII.c 14 The Series 2014 Bonds may be transferred or exchanged, at the principal office of the Paying Agent in the city identified in the definition of Paying Agent in Section 1 hereof, for a like aggregate principal amount of Series 2014 Bonds of other authorized denominations of the same maturity and interest rate, upon payment by the transferee of a transfer fee, any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of printing bonds in connection therewith. Upon surrender for transfer of any Series 2014 Bond, duly endorsed for transfer or accompanied by an assignment duly executed by the Owner or his or her attorney duly authorized in writing, the City shall execute and the Paying Agent shall authenticate and deliver in the name of the transferee a new Series 2014 Bond. Section 6. Replacement of Lost, Destroyed or Stolen Series 2014 Bonds . If any Series 2014 Bond shall become lost, apparently destroyed, stolen or wrongfully taken, it may be replaced in the form and tenor of the lost, destroyed, stolen or taken bond and the City shall execute and the Paying Agent shall authenticate and deliver a replacement Series 2014 Bond upon the Owner furnishing, to the satisfaction of the Paying Agent: (a) proof of ownership (which shall be shown by the registration books of the Paying Agent), (b) proof of loss, destruction or theft, (c) an indemnity to the City and the Paying Agent with respect to the Series 2014 Bond lost, destroyed or taken, and (d) payment of the cost of preparing and executing the new bond or bonds. Section 7. Execution of Series 2014 Bonds. The Series 2014 Bonds shall be executed in the name and on behalf of the City with the manual or facsimile signature of the Mayor or Mayor Pro Tem of the City, shall bear a manual or facsimile of the seal of the City and shall be attested by the manual or facsimile signature of the City Clerk or Deputy or Assistant City Clerk, all of whom are hereby authorized and directed to prepare and execute the Series 2014 Bonds in accordance with the requirements hereof. Should any officer whose manual or facsimile signature appears on the Series 2014 Bonds cease to be such officer before delivery of any Series 2014 Bond, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. When the Series 2014 Bonds have been duly executed, the officers of the City are authorized to, and shall, deliver the Series 2014 Bonds to the Paying Agent for authentication. No Series 2014 Bond shall be secured by or entitled to the benefit of this Ordinance, or shall be valid or obligatory for any purpose, unless the certificate of authentication of the Paying Agent has been manually executed by an authorized signatory of the Paying Agent. The executed certificate of authentication of the Paying Agent upon any Series 2014 Bond shall be conclusive evidence, and the only competent evidence, that such Series 2014 Bond has been properly authenticated and delivered hereunder. Section 8. Redemption of Series 2014 Bonds Prior to Maturity . (a) Optional Redemption . The Series 2014 Bonds shall be subject to redemption at the option of the City, in whole or in part, and if in part in such order of maturities as the City shall determine and by lot within a maturity, at a redemption price of 100% of the principal amount so redeemed plus accrued interest to the redemption date, on such dates as are set forth in the Sale Certificate. (b) Mandatory Sinking Fund Redemption . The Series 2014 Bonds shall be subject to mandatory sinking fund redemption by lot on November 1 of the years and in P70 VIII.c 15 the principal amounts specified in the Sale Certificate, at a redemption price equal to the principal amount to be redeemed (with no redemption premium), plus accrued interest to the redemption date. If the Sale Certificate designates mandatory sinking fund redemption dates for the Series 2014 Bonds, the City, at its option, to be exercised on or before the forty-fifth day next preceding each sinking fund redemption date, may (i) purchase and cancel any Series 2014 Bonds with the same maturity date as the Series 2014 Bonds subject to such sinking fund redemption and (ii) receive a credit in respect of its sinking fund redemption obligation for any Series 2014 Bonds with the same maturity date as the Series 2014 Bonds subject to such sinking fund redemption which prior to such date have been redeemed (otherwise than through the operation of the sinking fund) and cancelled and not theretofore applied as a credit against any sinking fund redemption obligation. Each Series 2014 Bond so purchased and cancelled or previously redeemed shall be credited at the principal amount thereof to the obligation of the City on such sinking fund redemption date, and the principal amount of Series 2014 Bonds to be redeemed by operation of such sinking fund on such date shall be accordingly reduced. (c) Redemption Procedures . Notice of any redemption of Series 2014 Bonds shall be given by sending a copy of such notice by first-class, postage prepaid mail, not less than 30 days prior to the redemption date, to the Owner of each Series 2014 Bond being redeemed. Such notice shall specify the number or numbers of the Series 2014 Bonds so to be redeemed (if redemption shall be in part) and the redemption date. If any Series 2014 Bond shall have been duly called for redemption and if, on or before the redemption date, the City shall have set aside funds sufficient to pay the redemption price of such Series 2014 Bond on the redemption date, then such Series 2014 Bond shall become due and payable at such redemption date, and from and after such date interest will cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Series 2014 Bonds with respect to which such failure or defect did not occur. Any Series 2014 Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cancelled. Section 9. Delivery of Series 2014 Bonds Upon Original Issuance . Prior to the authentication and delivery by the Paying Agent of the Series 2014 Bonds in connection with their original issuance there shall be filed with the Paying Agent (a) a certified copy of this Ordinance and (b) a request and authorization to the Paying Agent on behalf of the City and signed by the Mayor or Mayor Pro Tem to authenticate the Series 2014 Bonds and to deliver the Series 2014 Bonds to the Underwriter or the Persons designated therein, upon payment to the City of a sum specified in such request and authorization plus accrued interest thereon to the date of delivery. Upon the authentication of the Series 2014 Bonds, the Paying Agent shall deliver the same to the Underwriter or its designee as directed in such request and authorization. Section 10. Creation and Reaffirmation of Funds and Accounts . (a) There is hereby created by the City the following funds and accounts: P71 VIII.c 16 (i) the Series 2014 Rebate Fund, designated as the “City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds, Series 2014, Rebate Fund;” and (ii) the Series 2014 Reserve Fund, designated as the “City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds, Series 2014, Reserve Fund.” (b) The following funds, originally created pursuant to Section 13 of the Series 1999 Ordinance and renamed pursuant to Section 10(b) of the Series 2001 Ordinance, are hereby reaffirmed as follows: (i) the Bond Fund is hereby reaffirmed as the “City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Bonds Bond Fund;” and (ii) the Revenue Fund is hereby reaffirmed as the “City of Aspen, Colorado, Parks and Open Space Sales Tax Revenue Bonds Revenue Fund.” Section 11. Application of Proceeds of Series 2014 Bonds. The proceeds received by the City from the sale of the Series 2014 Bonds shall be applied generally as set forth below, and as more particularly provided in the Sale Certificate: (a) to the Escrow Account, proceeds of the Series 2014 Bonds which are sufficient to pay the Refunded Bond Requirements in accordance with the Escrow Agreement; and (b) to fund the Series 2014 Reserve Fund or to pay for the Series 2014 Surety Bond (as determined by the Mayor, the City Manager or the Finance Director and set forth in the Sale Certificate); and (c) to pay the costs of issuing the Series 2014 Bonds, including any premium due with respect to a Bond Insurance Policy (if any); and (d) the remainder shall be separately accounted for by the City to pay the costs of the Project. Section 12. Special Obligations; Pledge and Lien for Payment of Bonds . (a) Series 2014 Bonds . The City hereby pledges the Pledged Revenues, the Bond Fund, the Series 2014 Reserve Fund and the Revenue Fund for the payment of the principal of, premium, if any, and interest on the Series 2014 Bonds at any time Outstanding, and grants an irrevocable and first lien for such purpose on the Pledged Revenues, the Bond Fund, the Series 2014 Reserve Fund and the Revenue Fund. (b) Series 2013 Bonds . The City hereby further pledges the Pledged Revenues, the Bond Fund, the Series 2013 Reserve Fund and the Revenue Fund for the payment of the principal of, premium, if any, and interest on the Series 2013 Bonds at any time Outstanding, and grants an irrevocable and first lien (but not necessarily an P72 VIII.c 17 exclusive such lien) for such purpose on the Pledged Revenues, the Bond Fund, the Series 2013 Reserve Fund and the Revenue Fund. The lien of the Series 2013 Bonds on the Pledged Revenues, the Bond Fund, and the Revenue Fund is on parity with the lien of the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds, the Series 2014 Bonds, and any Additional Parity Bonds. (c) Series 2012 Bonds . The City hereby further pledges the Pledged Revenues, the Bond Fund, the Series 2012 Reserve Fund and the Revenue Fund for the payment of the principal of, premium, if any, and interest on the Series 2012 Bonds at any time Outstanding, and grants an irrevocable and first lien (but not necessarily an exclusive such lien) for such purpose on the Pledged Revenues, the Bond Fund, the Series 2012 Reserve Fund and the Revenue Fund. The lien of the Series 2012 Bonds on the Pledged Revenues, the Bond Fund, and the Revenue Fund is on parity with the lien of the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2013 Bonds, the Series 2014 Bonds, and any Additional Parity Bonds. (d) Series 2009 Bonds . The City hereby further pledges the Pledged Revenues, the Bond Fund, the Series 2009 Reserve Fund and the Revenue Fund for the payment of the principal of, premium, if any, and interest on the Series 2009 Bonds at any time Outstanding, and grants an irrevocable and first lien (but not necessarily an exclusive such lien) for such purpose on the Pledged Revenues, the Bond Fund, the Series 2009 Reserve Fund and the Revenue Fund. The lien of the Series 2009 Bonds on the Pledged Revenues, the Bond Fund, and the Revenue Fund is on parity with the lien of the Series 2005 Bonds, the Series 2005B Bonds, the Series 2012 Bonds, the Series 2013 Bonds, the Series 2014 Bonds, and any Additional Parity Bonds. (e) Series 2005B Bonds. The City hereby pledges the Pledged Revenues, the Bond Fund, the Series 2005B Reserve Fund and the Revenue Fund for the payment of the principal of, premium, if any, and interest on the Series 2005B Bonds at any time Outstanding, and grants an irrevocable and first lien (but not necessarily an exclusive such lien) for such purpose on the Pledged Revenues, the Bond Fund, the Series 2005B Reserve Fund and the Revenue Fund. The lien of the Series 2005B Bonds on the Pledged Revenues, the Bond Fund, and the Revenue Fund is on parity with the lien of the Series the Series 2005 Bonds, the Series 2009 Bonds, the Series 2012 Bonds, the Series 2013 Bonds, the Series 2014 Bonds, and any Additional Parity Bonds. (f) Series 2005 Bonds . The City hereby further pledges the Pledged Revenues, the Bond Fund, the Series 2005 Reserve Fund and the Revenue Fund for the payment of the principal of, premium, if any, and interest on the Series 2005 Bonds at any time Outstanding, and grants an irrevocable and first lien (but not necessarily an exclusive such lien) for such purpose on the Pledged Revenues, the Bond Fund, the Series 2005 Reserve Fund and the Revenue Fund. The lien of the Series 2005 Bonds on the Pledged Revenues, the Bond Fund, and the Revenue Fund is on parity with the lien of the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds, the Series 2013 Bonds, the Series 2014 Bonds, and any Additional Parity Bonds. P73 VIII.c 18 (g) Additional Parity Bonds . Subject to Section 13 hereof, the City also hereby pledges the Pledged Revenues, the Bond Fund and the Revenue Fund for the payment of the principal of, premium, if any, and interest on any Additional Parity Bonds at any time Outstanding, and grants an irrevocable and first lien for such purpose on the Pledged Revenues, the Bond Fund and the Revenue Fund. (h) Equally and Ratably Secured . The Bonds shall be equally and ratably secured by the pledge of and lien on the Pledged Revenues, the Bond Fund and the Revenue Fund granted by this Section and shall not be entitled to any priority one over the other in the application of Pledged Revenues or the moneys on deposit at any time in the Bond Fund and the Revenue Fund. (i) Superior Liens Prohibited . The City shall not pledge or create any other lien on the revenues and moneys pledged pursuant to this Section that is superior to the pledge thereof or lien thereon pursuant hereto. (j) Subordinate Liens Permitted . Nothing herein shall prohibit the City from pledging or creating a lien on the revenues and moneys pledged and the lien created pursuant to subsections (a), (b) and (c) of this Section that is subordinate to the pledge thereof or lien thereon pursuant to such subsections, provided that no such subordinate pledge or lien shall be created unless and until there is delivered to the Paying Agent a written certification by the Mayor that no Event of Default has occurred and is continuing. (k) No Prohibition on Additional Security . Nothing herein shall prohibit the City from (i) using, pledging or granting a lien on any revenues from the Parks and Open Space Sales Tax that are not Pledged Revenues or any other moneys for the payment of the principal of, premium, if any, or interest on the Bonds or (ii) depositing any revenues from the Parks and Open Space Sales Tax that are not Pledged Revenues or any other moneys into the Bond Fund or the Revenue Fund (and thereby subjecting the moneys so deposited to the pledge made and lien granted by this Section). (l) Bonds are Special, Limited Obligations of the City . The Bonds are special, limited obligations of the City payable solely from and secured solely by the Pledged Revenues and the other sources specified in this Ordinance and shall not be deemed or construed as creating a debt or indebtedness of the City within the meaning of any constitutional or statutory limitation. Section 13. Conditions to Issuance of Additional Parity Bonds. So long as any Bonds may be Outstanding: (a) Limitations Upon Issuance of Additional Parity Bonds . Nothing in this Ordinance shall be construed to prevent the issuance by the City of Additional Parity Bonds (including refunding obligations) payable in whole or in part from the Pledged Revenues (or any designated part thereof) and constituting a lien thereon on a parity with, but not prior or superior to, the lien of the Series 2014 Bonds, the Series 2013 Bonds, the Series 2012 Bonds, the Series 2009 Bonds, the Series 2005B Bonds, the Series 2005 P74 VIII.c 19 Bonds and any previously issued Additional Parity Bonds; provided, however, that before any such Additional Parity Bonds are authorized or actually issued: (i) The City is then current in all payments required to have been accumulated in the Bond Fund, the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund, and any reserve fund maintained with respect to any then Outstanding series of Additional Parity Bonds, and there is not otherwise an Event of Default as defined in Section 24 hereof. (ii) The revenues derived from the entire Pledged Revenues for the twelve consecutive calendar months out of the last 18 calendar months immediately preceding the month of issuance of such Additional Parity Bonds shall have been sufficient to pay an amount equal to 150% of the combined maximum annual principal and interest requirements (to and including the final maturity of each then-Outstanding series of Bonds) on the then-Outstanding Bonds and on the Additional Parity Bonds then proposed to be issued (including any reserve requirements therefor). (iii) The ordinance authorizing such Additional Parity Bonds shall require that a reserve fund for Additional Parity Bonds be created in an amount equal to the Reserve Fund Requirement for such Additional Parity Bonds. The City may, however, comply with the Reserve Fund Requirement through a Reserve Fund Contract that meets the standards established in Section 16 hereof. (b) Certificate of Revenues . A written certification by the Finance Director of the City that such Pledged Revenues are sufficient to pay the amounts required by paragraph (a)(ii) of this Section shall be conclusively presumed to be accurate in determining the right of the City to authorize, issue, sell and deliver Additional Parity Bonds. (c) Subordinate Obligations Permitted . Nothing in this Ordinance shall be construed to prevent the issuance by the City of additional obligations (including refunding obligations) payable from the Pledged Revenues (or any designated part thereof) and having a lien thereon subordinate or junior to the lien of the Bonds. (d) Superior Obligations Prohibited . Nothing in this Ordinance shall be construed to permit the City to issue additional obligations (including refunding obligations) payable from the Pledged Revenues (or any designated part thereof) having a lien thereon prior and superior to the lien of the Bonds. (e) Refunding Obligations . The provisions of this Section are subject to the following exception: (i) Privilege of Issuing Refunding Obligations . If at any time after any of the Bonds, or any part thereof, shall have been issued and remain P75 VIII.c 20 Outstanding, the City shall find it desirable to refund all or any part of the Outstanding Bonds, such Bonds, or any part thereof, may be refunded (but only with the consent of the Owner or Owners thereof, unless such Bonds, at the time of their required surrender for payment, shall then mature, or shall then be subject to redemption prior to maturity). (ii) Limitations Upon Issuance of Parity Refunding Obligations . No refunding obligations payable from the Pledged Revenues (or any designated part thereof) shall be issued on a parity with the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds, the Series 2013 Bonds and the Series 2014 Bonds, unless: (A) the lien on such Pledged Revenues of the outstanding obligations so refunded is on a parity with the lien thereon of the Series 2005 Bonds, the Series 2005B Bonds, the Series 2009 Bonds, the Series 2012 Bonds, the Series 2013 Bonds and the Series 2014 Bonds; or (B) the refunding obligations are issued in compliance with subsection (a) of this Section. (iii) Partial Refunding of Bonds . Any refunding obligations so issued to refund any of the Bonds shall enjoy complete equality of lien with any Bonds which are not refunded. (iv) Limitations Upon Refundings . Any refunding obligations payable from the Pledged Revenues may be issued with such details as the City may by ordinance provide, but without any impairment of any contractual obligations imposed upon the City by this Ordinance. Section 14. Application of Pledged Revenues . So long as any of the Bonds shall remain Outstanding, all Pledged Revenues, as they are received, shall be transferred from the Parks and Open Space Fund or any other funds or accounts to which they are required to be deposited by the Section 23-32-060(c)(7) of the City’s Municipal Code or otherwise, and shall thereupon be deposited into the Revenue Fund, and the Pledged Revenues are hereby appropriated for such purpose. Moneys on deposit in the Revenue Fund shall be transferred from the Revenue Fund and applied to the following purposes and in the following order of priority: (a) FIRST, there shall be credited to the Bond Fund an amount necessary, together with any moneys therein and available therefor, to pay the next due installment of principal of, premium, if any, and interest on the Bonds; (b) SECOND, there shall be credited, on a pro rata basis, to the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund, and any reserve fund or funds created with respect to any series of Additional Parity Bonds an amount, if any, necessary to increase the amount on deposit in each of such funds to the Reserve Fund Requirement for such fund or to repay the provider of a Reserve Fund Contract for a drawing thereon. No payment need be made into any such fund so long as P76 VIII.c 21 the moneys therein shall equal not less than the Reserve Fund Requirement for such fund and no draw has been made on any Reserve Fund Contract deposited in such fund. The Reserve Fund Requirement for each such fund shall be accumulated and maintained in each such fund as a continuing reserve to be used, except as hereinafter provided, only to prevent deficiencies in the payment of the principal of, premium, if any, and interest on the Bonds. (c) THIRD, there shall be credited to the Parks and Open Space Fund or, subject to any limitation in the Charter, the Parks and Open Space Sales Tax Ordinances and the City’s Municipal Code, used in any lawful manner by the City, any amounts remaining after making the deposits required by subsections (a) and (b) of this Section. (d) Notwithstanding subsections (a) and (b) of this Section, no payment need be made pursuant to subsection (a) or (b) of this Section into either the Bond Fund, the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund or any reserve fund created for a series of Additional Parity Bonds if the moneys on deposit in such funds total a sum at least equal to the entire amount of the Outstanding Bonds as to any principal, premium, if any, and interest requirements, to their respective maturities, or to any redemption date on which the City shall have exercised its option to redeem all or a portion of the Bonds then Outstanding and thereafter maturing, and both accrued and not accrued, in which case moneys in such funds in an amount at least equal to such principal, premium, if any, and interest requirements shall be used solely to pay such as the same accrue, and any moneys in excess thereof in such funds may, subject to any limitations in the Parks and Open Space Sales Tax Ordinances or the City’s Municipal Code, be used in any lawful manner by the City. Section 15. Bond Fund. Moneys in the Bond Fund shall be used solely for the purpose of paying the principal of, premium, if any, and interest on the Bonds. Section 16. Series 2014 Reserve Fund . (a) Use of Moneys in Series 2014 Reserve Fund . If on any date specified in Section 19 hereof, the City shall have for any reason failed to pay to the Paying Agent the full amount required to pay the next installment of principal of or interest on the Bonds, then an amount equal to the amount needed to bring the amount in the Bond Fund to the full amount so required shall be immediately paid, pro rata, to the Paying Agent from: (i) the Series 2014 Reserve Fund with respect to the portion of the deficiency corresponding to the amounts due on the Series 2014 Bonds; (ii) the Series 2013 Reserve Fund with respect to the portion of the deficiency corresponding to the amounts due on the Series 2013 Bonds; (iii) the Series 2012 Reserve Fund with respect to the portion of the deficiency corresponding to the amounts due on the Series 2012 Bonds; (iv) the Series 2009 Reserve Fund with respect to the portion of the deficiency corresponding to the amounts due on the Series 2009 Bonds; (v) the Series 2005B Reserve Fund with respect to the portion of the deficiency corresponding to the amounts due on the Series 2005B Bonds; (vi) the Series 2005 Reserve Fund with respect to the portion of the deficiency corresponding to the amounts due on the Series 2005 Bonds; and (vii) any reserve fund P77 VIII.c 22 or funds created with respect to any series of Additional Parity Bonds with respect to the portion of the deficiency corresponding to the amounts due on such series of Additional Parity Bonds. The money so used shall be replaced in the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund and any such other reserve fund or funds on a pro rata basis from the first Pledged Revenues thereafter received not required to be otherwise applied hereunder, but excluding any payments required for any subordinate obligations. If in any period the City shall for any reason fail to pay into the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund or any such other reserve fund or funds the full amount above stipulated from the Pledged Revenues, the difference between the amount paid and the amount so stipulated shall in a like manner be deposited therein from the first Pledged Revenues thereafter received not required to be applied otherwise by this Section, but excluding any payments required for any subordinate obligations. Moneys in the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund and any such other reserve fund shall be used solely for the purpose of paying the principal of, premium, if any, and interest on the series of Bonds with respect to which such fund is maintained. (b) Use of Moneys in Excess of Reserve Fund Requirement Any moneys at any time in excess of the Reserve Fund Requirement in the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund or any reserve fund or funds maintained with respect to any series of Additional Parity Bonds may be withdrawn therefrom and, subject to any limitation in the Charter, the Parks and Open Space Sales Tax Ordinances and the City’s Municipal Code, used in any lawful manner by the City. (c) Reserve Fund Contract . (i) The City may substitute for the cash or Permitted Investments in any Reserve Fund a surety bond issued by entity rated at least “A” by S&P (a “Reserve Fund Contract”), so long as the amount on deposit in any Reserve Fund after such substitution is at least equal to the Reserve Fund Requirement applicable to such Reserve Fund. In the event the City shall substitute a Reserve Fund Contract for the cash or Permitted Investments in any Reserve Fund, the amount on deposit in any Reserve Fund shall be that amount available to be drawn or otherwise paid pursuant to such surety bond at the time of calculation. If any Reserve Fund shall include both cash or Permitted Investments and a Reserve Fund Contract, the cash and Permitted Investments shall be used before any demand is made on any Reserve Fund Contract. Notwithstanding the foregoing, prior to such substitution, the City must receive an opinion of nationally recognized municipal bond counsel to the effect that such substitution and the intended use by the City of the cash or Permitted Investments to be released from any Reserve Fund will not adversely affect the P78 VIII.c 23 exclusion from gross income for federal income tax purposes of interest on the Bonds to which such Reserve Fund applies. (ii) The Series 2014 Surety Bond (if any) is hereby recognized to be a Reserve Fund Contract described in paragraph (i) of this subsection (c). Upon issuance thereof by the Bond Insurer, the Series 2014 Surety Bond (if any) shall be deposited in the Series 2014 Reserve Fund and shall be used in the manner described in paragraph (i) of this subsection (c). (d) Valuation of Deposits . Cash shall satisfy the Reserve Fund Requirement for the Series 2014 Reserve Fund by the amount of cash on deposit. Permitted Investments shall satisfy the Reserve Fund Requirement by the value of such investments. The value of each Permitted Investment on deposit in the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund and any reserve fund or funds created with respect to any series of Additional Parity Bonds shall be (i) its purchase price from the date of purchase until the first date thereafter on which the Reserve Fund Requirement is calculated pursuant to subsection (e) of this Section and (ii) following each date on which the Reserve Fund Requirement is calculated pursuant to subsection (e) of this Section until the next date on which the Reserve Fund Requirement is so calculated, its fair market value determined as of such calculation date. A Reserve Fund Contract shall satisfy the Reserve Fund Requirement by the amount payable to the City pursuant to such contract. (e) Calculation of Reserve Fund Requirement and Transfers Resulting from Calculation . The Reserve Fund Requirement for each of the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund and any reserve fund or funds created with respect to any series of Additional Parity Bonds shall be calculated as of (i) the date of issuance of the Series 2014 Bonds, (ii) the date of issuance of each series of Additional Parity Bonds and (iii) each November 1, commencing November 1, 2014. If, on any calculation date, the amount on deposit in any of such funds is less than the Reserve Fund Requirement for such fund, Pledged Revenues shall be deposited into such fund as provided in Section 14 hereof to the extent necessary to satisfy the Reserve Fund Requirement in cash or by the purchase of Permitted Investments or a Reserve Fund Contract. Section 17. Escrow Account . (a) Establishment and Maintenance of Escrow Account. There is hereby authorized and directed to be established pursuant to the terms of the Escrow Agreement a special account designated as the “Parks and Open Space Sales Tax Revenue Refunding Bonds, Series 2014, Escrow Account,” which shall be maintained in accordance with the provisions hereof and of the Escrow Agreement. The Escrow Account shall be maintained in an amount at the time of the initial deposits therein and at all times subsequently at least sufficient, together with the known minimum yield to be derived from the initial investment and any temporary reinvestment of the deposits therein or any P79 VIII.c 24 part thereof in Federal Securities to pay the Refunded Bond Requirements with respect to the Refunded Bonds. Except as may be otherwise provided in the Escrow Agreement, the City shall have no right or title to the moneys credited to or held in the Escrow Account, and such title shall be and is hereby transferred to the Escrow Agent in trust for the payment of the Refunded Bond Requirements for the Refunded Bonds pursuant to the Escrow Agreement. Moneys shall be withdrawn by the Escrow Agent from the Escrow Account in sufficient amounts and at such times to permit the payment without default of the Refunded Bond Requirements for the Refunded Bonds. If for any reason the amount in the Escrow Account shall at any time be insufficient for the purpose hereof, the City shall forthwith from the first moneys available therefor deposit in such account such additional moneys as shall be necessary to permit the payment in full of the Refunded Bond Requirements for the Refunded Bonds. (b) Call of Refunded Bonds . The City Council does hereby declare its intent to exercise on behalf of and in the name of the City its option to redeem all of the Refunded Bonds on the earliest date on which the Refunded Bonds can be called and redeemed. The City hereby authorizes and irrevocably instructs the Escrow Agent, in its capacity as paying agent for the Refunded Bonds, to give or cause to be given a notice of refunding, defeasance and redemption of the Refunded Bonds in accordance with the provisions of the Series 2005B Ordinance. Section 18. Rebate Fund . The City shall deposit earnings from the investment of proceeds of the Series 2014 Bonds, earnings from the investment of moneys on deposit in the Bond Fund, the Series 2014 Reserve Fund and the Revenue Fund or other legally available moneys in the Rebate Fund in the amounts and at the times provided in the Tax Certificate. Earnings from the investment of moneys on deposit in the Rebate Fund shall be retained in the Rebate Fund. Moneys on deposit in the Rebate Fund shall be used as provided in the Tax Certificate. Section 19. Payments to and by Paying Agent . (a) Payments to Paying Agent. No later than the Business Day immediately preceding each Interest Payment Date, the City shall deliver moneys to the Paying Agent in an amount sufficient to pay the principal of, premium, if any, and interest on the Bonds on such date from the sources and in the priority order set forth below: First, from moneys on deposit in the Bond Fund; and Second, if and to the extent the moneys on deposit in the Bond Fund are not sufficient to pay the principal of, premium, if any, or interest due on the Bonds on such date, from the Series 2014 Reserve Fund, the Series 2013 Reserve Fund, the Series 2012 Reserve Fund, the Series 2009 Reserve Fund, the Series 2005B Reserve Fund, the Series 2005 Reserve Fund and any reserve fund maintained with respect to any series of Additional Parity Bonds, on a pro rata basis, pursuant to Section 16 hereof. P80 VIII.c 25 (b) Payments by Paying Agent. The Paying Agent shall use the moneys delivered to it pursuant to subsection (a) of this Section to pay the principal of, premium, if any, and interest on the Bonds when due. Section 20. General Administration of Funds. The funds and accounts established pursuant to this Ordinance, with the exception of the Rebate Fund, shall be administered as follows, subject to the limitations stated in Sections 16 and 21 of this Ordinance: (a) Investment of Money. Any moneys in any such fund and account may be invested in Permitted Investments. The obligations in which moneys in each fund or account are invested shall be deemed at all times to be part of the respective fund or account, and any appreciation or loss resulting therefrom shall be recorded to such fund or account. Interest accruing on the investment of any moneys in the Series 2014 Reserve Fund shall be deposited as received into the Revenue Fund, and interest accruing on the investment of any moneys in any other such fund or account shall be credited to the fund or account from which it is derived. The City Finance Director shall present for redemption or sale in the prevailing market any obligations so purchased as an investment of moneys in the fund or account whenever it shall be necessary to do so in order to provide moneys to meet any payment or transfer from said fund or account. (b) Deposits of Funds. The moneys and investments comprising each of such funds and accounts shall be deposited in one or more banks or savings and loans associations, each of which is a member of the Federal Deposit Insurance Corporation. Each payment shall be made into and credited to the proper fund or account on the date specified, but if such date shall be other than a Business Day, such payment shall be made on the next preceding Business Day. Nothing herein shall prevent the establishment of one or more such bank accounts, for all of such funds and accounts, or shall prevent the combination of such funds and accounts with any other bank account or accounts for other accounts of the City. Section 21. Additional General Covenants . In addition to the other covenants of the City contained herein, the City hereby further covenants for the benefit of Owners of the Bonds that: (a) Payment of Series 2014 Bonds. The City will promptly pay or cause to be paid the principal of, premium, if any, and interest on the Series 2014 Bonds, at the place, on the dates and in the manner provided in this Ordinance, according to the true intent and meaning of this Ordinance. (b) No Repeal or Modification of Parks and Open Space Sales Tax Ordinances or Applicable Sections of City’s Municipal Code. The City shall not repeal the Parks and Open Space Sales Tax Ordinances or adopt any modification of such ordinances or any provisions of the City’s Municipal Code which would impair the Pledged Revenues. (c) Duty to Impose Open Space Sales Tax. If the Parks and Open Space Sales Tax Ordinances, the provisions of the City’s Municipal Code referred to in subsection (b) P81 VIII.c 26 of this Section or any modifying or supplemental instrument thereto not contravening the limitations of subsection (b) of this Section, or any part of such ordinances or such portions of the City’s Municipal Code, shall ever be held to be invalid or unenforceable or shall otherwise be terminated, it shall be the duty of the City, to the extent possible under then existing law, to adopt immediately such ordinances, to seek such voter approval, if any, as may then be required by law, or to take any other action necessary to produce at least the same amount of Pledged Revenues as would have otherwise been produced under the terms of such ordinances and such portions of the City’s Municipal Code. Notwithstanding the foregoing, it is hereby acknowledged that: (i) the Additional Parks and Open Space Sales Tax terminates on December 31, 2025, (ii) the City shall have no obligation to seek an extension or replacement thereof after such date or to otherwise take action to produce the amount of Pledged Revenues that would otherwise be received from a 0.5% sales tax after such date, and (iii) in the event that an extension or replacement of such 0.5% portion of the Parks and Open Spaces Sales tax is authorized and imposed, such extension or replacement shall not constitute Additional Parks and Open Spaces Sales Tax for purposes of this Ordinance and the proceeds of any such extension or replacement thereof shall not constitute Pledged Revenues hereunder. (d) Impairment of Contract. The City agrees that any law, ordinance or resolution of the City in any manner affecting the Pledged Revenues or the Bonds, shall not be repealed or otherwise directly or indirectly modified in such a manner as to impair any Bonds Outstanding, unless in the case of this Ordinance the required consent of the Owners of the then Outstanding Bonds is obtained pursuant to Section 26 of this Ordinance. (e) Records . So long as any of the Bonds remain Outstanding, proper books of record and account will be kept by the City, separate and apart from all other records and accounts, showing complete and correct entries of all transactions relating to the Pledged Revenues. The Owners of any Bonds shall have the right at any reasonable time to inspect such records and accounts. (f) Audits. The City further agrees that it will, within 180 days following the close of each fiscal year, cause an audit of such books and accounts to be made by an independent certified public accountant, showing the revenues and expenditures of the Pledged Revenues. The City agrees to furnish forthwith a copy of each such audit to the Owner of any Bond at his request, and without request to the Original Purchaser. Any such Owner shall have the right to discuss with the accountant or person making the audit its contents and to ask for such additional information as he may reasonably require. (g) Extending Interest Payments. In order to prevent any accumulation of claims for interest after maturity, the City will not directly or indirectly extend or assent to the extension of time for the payment of any claim for interest on any of the Bonds and it will not directly or indirectly be a party to or approve any such arrangement; and in case the time for payment of any interest shall be extended, such installment or installments of interest after such extension or arrangement shall not be entitled in case of default hereunder to the benefit or security of this Ordinance except subject to the prior P82 VIII.c 27 payment in full of the principal of all Bonds and then Outstanding, and of matured interest on such Bonds, the payment of which has not been extended. (h) Performing Duties. The City will faithfully and punctually perform all duties with respect to the Pledged Revenues required by the Charter and the Constitution and laws of the State of Colorado, and the ordinances and resolutions of the City, including but not limited to, the proper segregation of the Pledged Revenues and their application to the respective funds. (i) Other Liens. Other than that granted for the Bonds herein, there are presently no other liens or encumbrances of any nature whatsoever on or against the Pledged Revenues. (j) City’s Existence . The City will maintain its corporate identity and existence so long as any of the Bonds remain Outstanding, unless another body corporate and politic by operation of law succeeds to the duties, privileges, powers, liabilities, disabilities, immunities and rights of the City and is obligated by law to receive and distribute the Pledged Revenues in place of the City, without affecting to any substantial degree the privileges and rights of any Owner of any Outstanding. (k) Continuing Disclosure . The City hereby covenants that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Ordinance, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered an Event of Default; provided that the Registered Owners of the Bonds may take such actions as may be necessary or appropriate, including seeking a mandatory injunction or specific performance, to cause the City to comply with its obligations under this Section. Section 22. Covenants Regarding Exclusion of Interest on Series 2014 Bonds from Gross Income for Federal Income Tax Purposes . For purposes of ensuring that the interest on the Series 2014 Bonds is and remains excluded from gross income for federal income tax purposes, the City hereby covenants that: (a) Prohibited Actions . The City will not use or permit the use of any proceeds of the Series 2014 Bonds or any other funds of the City from whatever source derived, directly or indirectly, to acquire any securities or obligations and shall not take or permit to be taken any other action or actions, which would cause any Series 2014 Bond to be an “arbitrage bond” within the meaning of Section 148 of the Code, or would otherwise cause the interest on any Series 2014 Bond to be includible in gross income for federal income tax purposes. (b) Affirmative Actions . The City will at all times do and perform all acts permitted by law that are necessary in order to assure that interest paid by the City on the Series 2014 Bonds shall not be includible in gross income for federal income tax purposes under the Code or any other valid provision of law. In particular, but without limitation, the City represents, warrants and covenants to comply with the following rules unless it receives an opinion of Bond Counsel stating that such compliance is not P83 VIII.c 28 necessary: (i) gross proceeds of the Series 2014 Bonds will not be used in a manner that will cause the Series 2014 Bonds to be considered “private activity bonds” within the meaning of the Code; (ii) the Series 2014 Bonds are not and will not become directly or indirectly “federally guaranteed”; and (iii) the City will timely file Internal Revenue Form 8038-G which shall contain the information required to be filed pursuant to Section 149(e) of the Code. (c) Tax Certificate . The City will comply with the Tax Certificate, including but not limited by the provisions of the Tax Certificate regarding the application and investment of Series 2014 Bond proceeds, the calculations, the deposits, the disbursements, the investments and the retention of records described in Tax Certificate. (d) Designation of Bonds as Qualified Tax-Exempt Obligations . The City hereby designates the Series 2014 Bonds as qualified tax-exempt obligations within the meaning of Section 265(b)(3) of the Code. The City covenants that the aggregate face amount of all tax-exempt obligations issued by the City, together with governmental entities which derive their issuing authority from the City or are subject to substantial control by the City, shall not be more than $10,000,000 during calendar year 2014. The City recognizes that such tax-exempt obligations include notes, leases, loans and warrants, as well as bonds. The City further recognizes that any bank, thrift institution or other financial institution that owns the Series 2014 Bonds will rely on the City’s designation of the Series 2014 Bonds as qualified tax-exempt obligations for the purpose of avoiding the loss of 100% of any otherwise available interest deduction attributable to such institution’s tax-exempt holdings. Section 23. Defeasance . Any Series 2014 Bond shall not be deemed to be Outstanding hereunder if it shall have been paid and cancelled or if cash or Defeasance Securities shall have been deposited in trust for the payment thereof (whether upon or prior to the maturity of such Series 2014 Bond, but if such Series 2014 Bond is to be paid prior to maturity, the City shall have given the Paying Agent irrevocable directions to give notice of redemption as required by this Ordinance, or such notice shall have been given in accordance with this Ordinance). In computing the amount of the deposit described above, the City may include interest to be earned on the Defeasance Securities. If less than all the Series 2014 Bonds are to be defeased pursuant to this Section, the City, in its sole discretion, may select which of the Series 2014 Bonds shall be defeased. Notwithstanding anything in this Bond Ordinance to the contrary, in the event that the principal and/or interest due on the Series 2014 Bonds shall be paid by the Bond Insurer pursuant to the Bond Insurance Policy, the Series 2014 Bonds shall remain Outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the City, and the assignment and pledge of the Pledged Revenues and all covenants, agreements and other obligations of the City to the Owners shall continue to exist and shall run to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the rights of such Owners. Section 24. Events of Default . If any of the following events occurs, it is hereby declared to constitute an Event of Default: P84 VIII.c 29 (a) default in the due and punctual payment of the principal of, premium, if any, or interest on any Bond whether at maturity thereof, or upon proceedings for redemption thereof; or (b) the City is for any reason rendered incapable of fulfilling its obligations hereunder; or (c) default in the due and punctual performance of the City’s covenants or conditions, agreements and provisions as set forth in this Ordinance, other than those delineated in paragraphs (a) and (b) of this Section, and such default has continued for 60 days after written notice specifying the default and requiring the same to be remedied has been given to the City by the Owners of 25% in principal amount of the Bonds then Outstanding or other than the covenant described in paragraph (k) of Section 21; or (d) the City shall file a petition for bankruptcy or shall be declared insolvent by a court of competent jurisdiction. Section 25. Remedies for and Duties Upon Events of Default . (a) Remedies for Events of Default . Upon the happening and continuance of any of the Events of Default as provided in Section 24 of this Ordinance, then and in every case, the Owner or Owners of not less than 25% in principal amount of the Bonds then Outstanding, including but not limited to, a trustee or trustees therefor, may proceed against the City and its agents, officers and employees, to protect and enforce the rights of any Owner of Bonds under this Ordinance by mandamus or other suit, action or special proceedings in equity or at law, in any court of competent jurisdiction, either for the specific performance of any covenant or agreement contained herein or in an award of execution of any power herein granted for the enforcement of any proper legal or equitable remedy as such Owner or Owners may deem most effectual to protect and enforce the rights aforesaid, or thereby to enjoin any act or thing which may be unlawful or in violation of any right of any Owner, or to require the governing body to act as if it were the trustee of an express trust, or any combination of such remedies. All such proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of the Bonds then Outstanding. The failure of any such Owner so to proceed shall not relieve the City or any of its officers, agents or employees of any liability for failure to perform any duty. Each right or privilege of any such Owner (or trustee thereof) is in addition and cumulative to any other right or privilege, and the exercise of any right or privilege by or on behalf of any Owner shall not be deemed a waiver of any other right or privilege thereof. (b) Duties Upon Events of Default . Upon the happening of any of the Events of Default as provided in Section 24 of this Ordinance, the City will do and perform all proper acts on behalf of and for the Owners of the Bonds to protect and preserve the security created for the payment of their Bonds and to insure the payment of the principal of, premium, if any, and interest on Bonds promptly as the same become due. All proceeds derived from the Pledged Revenues, during such period of default and so long as any of the Bonds, as to any principal, premium, if any, and interest are Outstanding P85 VIII.c 30 and unpaid, shall be paid into the Bond Fund, and used for the purposes herein provided. In the event the City fails or refuses to proceed as provided in this Section, the Owner or Owners of not less than 25% in principal amount of the Bonds then Outstanding, after demand in writing, may proceed to protect and enforce the rights of the Owners as herein provided. Section 26. Amendment of Ordinance . This Ordinance may be amended or supplemented by ordinance adopted by the City Council in accordance with law, without receipt by the City of additional considerations and without the consent of the Owners, to make any amendment or supplement to this Ordinance which, in the opinion of Bond Counsel, is not to the material prejudice of the Owners. This Ordinance may be amended or supplemented by ordinance adopted by the City Council in accordance with law, without receipt by the City of any additional consideration, but with the written consent of the Owners of 66-2/3% of the Bonds Outstanding at the time of the adoption of the amendatory ordinance, excluding any Bonds held for the account of the City; provided, however, that no such ordinance, without the consent of the Owners of all Outstanding Bonds which will be adversely affected, shall have the effect of permitting: (a) an extension of the maturity of any Bond; or (b) a reduction in the principal amount of any Bond, the rate of interest thereon, or the premium payable thereon; or (c) the creation of a lien upon or pledge of Pledged Revenues ranking prior to the lien or pledge of Pledged Revenues created by this Ordinance; or (d) a reduction of the principal amount of Bonds required for consent to such amendatory or supplemental ordinance; or (e) the establishment of priorities as between Bonds issued and Outstanding under the provisions of this Ordinance; or (f) the modification of or otherwise affecting the rights of the Owners of less than all of any series of Bonds then Outstanding. Section 27. Appointment and Duties of Paying Agent. (a) The Paying Agent identified in Section 1 hereof is hereby appointed as paying agent, registrar and authenticating agent for the Series 2014 Bonds unless and until the City or the Bond Insurer removes it as such and appoints a successor Paying Agent, in which event such successor shall, subject to subsection (b) of this Section, automatically succeed to the duties of the Paying Agent hereunder and its predecessor shall immediately turn over all its records regarding the Series 2014 Bonds to such successor. The Paying Agent, by accepting its duties as such, agrees to perform all duties and to take all actions assigned to it hereunder in accordance with the terms hereof. (b) Any successor Paying Agent appointed as such pursuant to subsection (a) of this Section must: (i) be a trust company or bank in good standing located in or P86 VIII.c 31 incorporated under the laws of the State; (ii) be duly authorized to exercise trust powers and subject to examination by federal or State authority; (iii) have a capital and surplus at the time of such appointment of not less than $75,000,000; and (iv) be acceptable to the Bond Insurer. (c) Notwithstanding any other provision of this Ordinance, no removal, resignation or termination of the Paying Agent shall take effect until a successor, acceptable to the Bond Insurer, shall be appointed. Section 28. Parties Interested Herein . Nothing in this Ordinance expressed or implied is intended or shall be construed to confer upon, or to give or grant to, any person or entity, other than the City, the Paying Agent, the Bond Insurer and the Owners of the Bonds, any right, remedy or claim under or by reason of this Ordinance or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Ordinance contained by and on behalf of the City shall be for the sole and exclusive benefit of the City, the Paying Agent, the Bond Insurer and the Owners of the Bonds. Section 29. Events Occurring on Days That Are Not Business Days . Except as otherwise specifically provided herein with respect to a particular payment, event or action, if any payment to be made hereunder or any event or action to occur hereunder which, but for this Section, is to be made or is to occur on a day that is not a Business Day shall instead be made or occur on the next succeeding day that is a Business Day. Section 30. Findings and Determinations . The City Council hereby finds, determines and declares that: (a) it is in the best interest of the City and its residents that the Series 2014 Bonds be authorized, sold, issued and delivered at the time, in the manner and for the purposes provided herein; (b) all actions required by the Charter and any other applicable law to be taken by the City for the issuance of the Series 2014 Bonds and the application of any of the provisions hereof have been taken by the City; (c) the interest rate on the Series 2014 Bonds as sold to the Underwriter, shall be a lower interest rate than the interest rate on the Refunded Bonds; therefore, the Series 2014 Bonds are issued to refinance City bonded debt at a lower interest rate for the purposes of TABOR and the Refunding Act; (d) the issuance of the Series 2014 Bonds will not cause the City to exceed its debt limit under the Charter or applicable State law; (e) the issuance of the Series 2014 Bonds and all procedures undertaken incident thereto are in full compliance and conformity with all applicable requirements, provisions and limitations prescribed by the Constitution and laws of the State and the City, including the Charter, and all conditions and limitations of the Charter and other applicable law relating to the issuance of the Series 2014 Bonds have been satisfied; P87 VIII.c 32 (f) the refunding of the Refunded Bonds with proceeds of the Series 2014 Bonds will, in accordance with Section 11-56-104(1), Colorado Revised Statutes, as amended, accomplish one or more of the following purposes: (i) reducing the net effective interest rate on the City’s bonds (based on a comparison of the net effective interest rate on the Refunded Bonds to the net effective interest rate on the Series 2014 Bonds); (ii) reducing total interest payable over the life of the City’s bonds, by issuing bonds of a shorter term, or at a lower net interest cost, or having a lower net effective interest rate than the Refunded Bonds; (iii) reducing the total principal and interest payable on the Refunded Bonds or the principal and interest payable thereon in any particular year or years, or (iv) effecting other economies; (g) in accordance with Section 11-56-107, C.R.S., the principal amount of the Series 2014 Bonds allocable to the refunding of the Refunded Bonds, when combined with the Series 2005B Bonds outstanding principal amount which is not being refunded will not exceed the total original authorized principal amount of the Series 2005B Bonds, and the remaining principal amount of the Series 2014 Bonds will not exceed the principal amount of debt authorization remaining under the Ballot Question; and (h) as required by Section 11-56-104.5, Colorado Revised Statutes, as amended: (i) the Underwriter, simultaneously with the submission to the City of its proposal to refund the Refunded Bonds, disclosed, in writing, to the City Council, the entire income, from all sources, which it anticipated receiving if its proposal were to be accepted, specifying all such sources and amounts, as well as disclosing all expenses which it anticipated the City would incur as a part of the refunding transaction; (ii) the City Council will require, as a condition to the issuance of the Series 2014 Bonds, that the Underwriter provide to the City Council (A) an update of the information described in clause (i) above and (B) a comparison of annual debt service requirements before and after the refunding, by year and amount, including funds which are required in addition to bond proceeds, showing the present value of all annual differences in debt service requirements, using as a discount factor the net effective interest rate of the Series 2014 Bonds, all computed from the date on which the transaction is closed, including funds provided by the City as a reduction of, or an addition to, debt service requirements and showing funds provided by the City in excess of accrued principal and interest, and earnings on the funds, over the life of, and compounded at the net effective interest rate of, the Series 2014 Bonds. Section 31. Delegation and Parameters . (a) The City Council hereby delegates to the Mayor, the City Manager and the City Finance Director the independent authority to make the determinations and set forth in the Sale Certificate: (i) the matters set forth in subsection (b) of this Section, subject to the applicable parameters set forth in subsection (c) of this Section; and (ii) any other matters that, in the judgment of the Mayor, the City Manager or the City Finance Director, are necessary or convenient to be set forth in the Sale Certificate and are not inconsistent with the parameters set forth in subsection (c) of this Section. P88 VIII.c 33 (b) The Sale Certificate shall set forth the following matters and other matters permitted to be set forth therein pursuant to subsection (a) of this Section, but each such matter must fall within the applicable parameters set forth in subsection (c) of this Section: (i) the date on which the Bonds will be issued, which shall be the Dated Date; (ii) the aggregate principal amount of the Series 2014 Bonds; (iii) the principal amount of the Series 2014 Bonds maturing in each year; (iv) the interest payment dates; (v) the rate of interest; (vi) the prices at which the Series 2014 Bonds will be sold pursuant to the Bond Purchase Agreement; (vii) the Refunded Bonds, to be identified by the principal amount thereof maturing in each year; (viii) the Series 2014 Bonds which may be redeemed at the option of the City, and the dates upon which such optional redemption may occur; (ix) the principal amounts, if any, of Bonds subject to mandatory sinking fund redemption, and the years in which such Bonds will be subject to such redemption; (x) the identity of the Bond Insurer (if any); and (xi) the amount (if any) of net proceeds of the Series 2014 Bonds to be deposited into the Reserve Fund or applied to pay for the Series 2014 Surety Bond (if any). (c) The authority delegated to the Mayor, the City Manager and the City Finance Director by this Section shall be subject to the following parameters: (i) in no event shall the Mayor, City Manager or City Finance Director be authorized to execute the Sale Certificate and Bond Purchase Agreement after the date that is 360 days after the date of adoption of this Ordinance and in no event may the Series 2014 Bonds be issued after such date, absent further authorization by the City Council; (ii) the aggregate principal amount of the Series 2014 Bonds shall not exceed $6,000,000; P89 VIII.c 34 (iii) the final maturity of the Series 2014 Bonds shall be no later than the date that is 11 years after the date of issuance of the Series 2014 Bonds; (iv) the maximum annual repayment cost of the Series 2014 Bonds shall not exceed $1,700,000, and the maximum total repayment cost shall not exceed $7,300,000; (v) the net effective interest rate on the Series 2014 Bonds shall not exceed 5.00%; (vi) the purchase price of the Bonds, shall not be less than 98.0%; and (vii) the Bonds shall (a) not be subject to redemption prior to maturity at the option of the City, or, (b) subject to optional redemption at such time or times as permitted by State law and as set forth in the Sale Certificate, at a redemption price not to exceed 100%; Section 32. Authorization to Execute Documents . For a period of 360 days following the adoption of this Ordinance, the City Council authorizes any of the Mayor, the City Manager or the City Finance Director to execute the Sale Certificate and to execute the Bond Purchase Agreement in accordance with the provisions hereof. The Mayor or City Clerk, or any other duly authorized officer of the City, shall, and they are hereby authorized and directed to, take all actions necessary or appropriate to effectuate the provisions of this Ordinance, including, but not limited to, the execution of the Escrow Agreement, the Paying Agent Agreement, and the Continuing Disclosure Undertaking, in substantially the forms presented to this meeting of the City Council, with such changes therein, if any, not inconsistent herewith, as are approved by the City (which, once executed by the appropriate City official, shall constitute conclusive evidence of approval of the City), a “Tax Compliance Certificate” or similar certificate describing the City’s expectations regarding the use and investment of proceeds of the Series 2014 Bonds and other moneys, an Internal Revenue Service Form 8038-G with respect to the Series 2014 Bonds, and all other documents and certificates necessary or desirable to effectuate the issuance of the Series 2014 Bonds, the investment of proceeds of the Series 2014 Bonds and the other transactions contemplated hereby. The execution by the Mayor or Mayor Pro Tem of the City or any other duly authorized officer of the City of any document authorized herein shall be conclusive proof of the approval by the City of the terms thereof. Section 33. Authorization of Bond Insurance and Series 2014 Surety Bond. The Underwriter may request, on behalf of the City, the submittal of bids to issue the Bond Insurance Policy. In the event that the Sale Delegate determines, based in part upon information provided by the Underwriter, that the premium bid for issuance of the Bond Insurance Policy is less than the interest cost savings to be realized by the City as a result of the issuance of the Bond Insurance Policy, the Council hereby delegates to the Mayor the City Manager and the City Finance Director the independent authority to execute the Commitment with the Bond Insurer. In the event that a Bond Insurance Policy is to be issued by the Bond Insurer, there is also delegated to the Mayor, the City Manager and the City Finance Director the independent authority to determine whether the Series 2014 Reserve Fund shall be funded with a Series 2014 P90 VIII.c 35 Surety Bond, which determination shall be set forth in the Sale Certificate. The officers of the City are also hereby authorized and directed to take all actions necessary to cause the Bond Insurer to issue the Bond Insurance Policy (if any) in accordance with the Commitment and to issue the Series 2014 Surety Bond (if any) in accordance with the Commitment, including without limitation, payment of the premium(s) due in connection therewith and entering into any authorizing agreement, including a Series 2014 Reserve Policy Agreement. The execution of the Commitment by the authorized officer of the City is hereby ratified and approved. Any of the Mayor, the City Manager and the City Finance Director are also independently authorized to set forth in the Sale Certificate such additional terms, provisions and conditions as may be required to cause the Bond Insurer to issue the Bond Insurance Policy and the Series 2014 Surety Bond (if any) in accordance with the Commitment, and the provisions of this Ordinance shall be subject to such provisions, if any, set forth in the Sale Certificate. Section 34. Approval of Official Statement . The City Council hereby approves the distribution and use of the Preliminary Official Statement relating to the Series 2014 Bonds in connection with the offering of the Series 2014 Bonds and authorizes and directs the City staff to prepare a final Official Statement for use in connection with the sale of the Series 2014 Bonds in substantially the form thereof presented to the City Council at the meeting at which this Ordinance is adopted, with such changes therein, if any, not inconsistent herewith, as are approved by the City Attorney of the City. The Mayor or Mayor Pro Tem is hereby authorized and directed to execute the final Official Statement. Section 35. Application of Supplemental Act . The City Council specifically elects to apply all of the provisions of Title 11, Article 57, Part 2, C.R.S. (as previously defined, the “Supplemental Act”), to the Series 2014 Bonds. Section 36. Limitation of Actions . Pursuant to Section 11-57-212, C.R.S., no legal or equitable action brought with respect to any legislative acts or proceedings in connection with the authorization or issuance of the Series 2014 Bonds shall be commenced more than thirty days after the authorization of the Series 2014 Bonds. Section 37.Ratification of Prior Actions . All actions heretofore taken not inconsistent with the provisions of this Ordinance or the Charter by the City Council, the Finance Director, or by the officers and employees of the City directed toward the issuance of the Series 2014 Bonds for the purposes herein set forth are hereby ratified, approved and confirmed. Section 38. Repeal of Inconsistent Resolutions; Contract with Owners of Series 2014 Bonds; Resolution Irrepealable . All ordinances and resolutions, or parts thereof, that are in conflict with this Ordinance are hereby repealed. After the Series 2014 Bonds have been issued, this Ordinance shall be and remain a contract between the City and the Owners of the Series 2014 Bonds and shall be and remain irrepealable until all amounts due with respect to the Series 2014 Bonds shall be fully paid, satisfied and discharged and all other obligations of the City with respect to the Series 2014 Bonds shall have been satisfied in the manner provided herein. Section 39. Headings, Table of Contents and Cover Page . The headings to the various sections and subsections to this Ordinance, and the cover page and table of contents that P91 VIII.c 36 appear at front of this Ordinance, have been inserted solely for the convenience of the reader, are not a part of this Ordinance and shall not be used in any manner to interpret this Ordinance. Section 40. Severability . It is hereby expressly declared that all provisions hereof and their application are intended to be and are severable. In order to implement such intent, if any provision hereof or the application thereof is determined by a court or administrative body to be invalid or unenforceable, in whole or in part, such determination shall not affect, impair or invalidate any other provision hereof or the application of the provision in question to any other situation; and if any provision hereof or the application thereof is determined by a court or administrative body to be valid or enforceable only if its application is limited, its application shall be limited as required to most fully implement its purpose. Section 41. Recordation . A true copy of this Ordinance, as adopted by the City Council of the City, shall be numbered and recorded, and its adoption and publication shall be authenticated by the signatures of the Mayor and the City Clerk and by a certification of publication. Section 42. Declaration of Emergency and Effective Date . Due to fluctuations in municipal bond prices and interest rates and due to currently favorable interest rates and due to the need to preserve public property, health, peace and safety, it is hereby declared that, in the opinion of the City Council, an emergency exists, and therefore this Ordinance shall be in full force and effect upon its passage. [remainder of this page intentionally left blank] P92 VIII.c 37 INTRODUCED, READ AND PASSED ON FIRST READING AS AN EMERGENCY MEASURE by the City Council of the City of Aspen at its regular meeting on October 13, 2014, as provided by the City’s Charter and applicable law. [SEAL] By Mayor Attest: By City Clerk READ, PASSED ON SECOND READING, FINALLY ADOPTED AND APPROVED AS AN EMERGENCY MEASURE AND ORDERED PUBLISHED WITHIN 10 DAYS OF SUCH FINAL PASSAGE by the City Council of the City of Aspen at its regular meeting on October 27, 2014, as provided by the City’s Charter and applicable law. [SEAL] By Mayor Attest: By City Clerk [signature page to Bond Ordinance] P93 VIII.c A-1 APPENDIX A FORM OF SERIES 2014 BOND No. R-__ $___________ UNITED STATES OF AMERICA CITY OF ASPEN, COLORADO SALES TAX REFUNDING AND IMPROVEMENT REVENUE BOND SERIES 2014 Interest Rate: Maturity Date: Original Dated Date: CUSIP: % November 1, ___ _________________ REGISTERED OWNER: **CEDE & CO.** Tax Identification Number: 13-2555119 PRINCIPAL SUM: **_______________ DOLLARS** The City of Aspen, Colorado (the “City”), a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado (the “State”) and the home rule charter of the City (the “Charter”) and political subdivision of the State, for value received, hereby promises to pay to the order of the registered owner named above or registered assigns, solely from the special funds as hereinafter set forth, on the maturity date stated above, the principal sum stated above, in lawful money of the United States of America, with interest thereon from the original dated date stated above, at the interest rate per annum stated above, payable on May 1 and November 1 of each year, commencing ___________, the principal of and premium, if any, and the final installment of interest on this bond being payable to the registered owner hereof upon presentation and surrender of this bond at the principal office of UMB Bank, n.a., as Paying Agent (the “Paying Agent”), in Kansas City, Missouri, and the interest hereon (other than the final installment of interest hereon) to be paid by check or draft of the Paying Agent mailed on the interest payment date to the registered owner hereof as of the close of business on the fifteenth day of the month (whether or not such day is a Business Day) preceding the month in which the interest payment date occurs, except that so long as Cede & Co. is the registered owner of this bond, the principal of, premium, if any, and interest on this bond shall be paid by wire transfer to Cede & Co. This bond is one of an issue of bonds of the City of Aspen, Colorado Parks and Open Space Sales Tax Revenue Refunding and Improvement Bonds, Series 2014, issued in the principal amount of $________ (the “Series 2014 Bonds”). The Series 2014 Bonds are being issued by the City for the purpose of refunding a portion of the City’s Parks and Open Space Sales Tax Revenue Bonds, Series 2005B, funding the purchase and improvement of trail, P94 VIII.c A-2 recreation, and open space properties and ancillary facilities, and the funding of a reserve fund surety bond for, and the costs of issuance of, the Series 2012 Bonds, pursuant to and in full conformity with the State Constitution and the Charter, the laws of the State, including, in particular, Article 56 of Title 11 and Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended and pursuant to an ordinance (the “Ordinance”) adopted by the City Council of the City prior to the issuance hereof. [Insert Redemption Provisions from Sale Certificate] Notice of any redemption of Series 2014 Bonds shall be given by sending a copy of such notice by first class, postage prepaid mail, not less than 30 days prior to the redemption date, to the Owner of each Series 2014 Bond being redeemed. Such notice shall specify the number or numbers of the Series 2014 Bonds so to be redeemed (if redemption shall be in part) and the redemption date. If any Series 2014 Bond shall have been duly called for redemption and if, on or before the redemption date, the City shall have set aside funds sufficient to pay the redemption price of such Series 2014 Bond on the redemption date, then such Series 2014 Bond shall become due and payable at such redemption date, and from and after such date interest will cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Series 2014 Bonds with respect to which such failure or defect did not occur. Any Series 2014 Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cancelled. The Paying Agent shall maintain registration books in which the ownership, transfer and exchange of Series 2014 Bonds shall be recorded. The person in whose name this bond shall be registered on such registration books shall be deemed to be the absolute owner hereof for all purposes, whether or not payment on this bond shall be overdue, and neither the City nor the Paying Agent shall be affected by any notice or other information to the contrary. This bond may be transferred or exchanged, at the principal office of the Paying Agent in Kansas City, Missouri, for a like aggregate principal amount of Series 2014 Bonds of other authorized denominations ($5,000 or any integral multiple thereof) of the same maturity and interest rate, upon payment by the transferee of a transfer fee, any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of printing bonds in connection therewith. The Series 2014 Bonds are special, limited obligations of the City payable solely from and secured solely by the sources provided in the Ordinance and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. Pursuant to the Ordinance the City has pledged for the payment of the principal of, premium, if any, and interest on the Series 2014 Bonds, and granted a lien for such purpose on the Pledged Revenues, constituting, for each fiscal year, all of the proceeds of the Parks and Open Space Sales Tax (as defined in the Ordinance) after deduction of the reasonable and necessary costs and expenses of collecting and enforcing the Parks and Open Space Sales Tax, if any, the Bond Fund, the Series 2014 Reserve Fund and the Revenue Fund (all as defined in the Ordinance). The Series 2014 Bonds are issued on a parity with the City’s Sales Tax Revenue Refunding Bonds, Series 2005 (the “Series 2005 Bonds”), the City’s Parks and Open Space Sales Tax Revenue Bonds, Series 2005B (the “Series 2005B Bonds”), the City’s Parks and Open Space Sales Tax Revenue Refunding Bonds, Series 2009 (the “Series 2009 Bonds”), the City’s Parks and Open Space Sales Tax Revenue Refunding P95 VIII.c A-3 and Improvement Bonds, Series 2012 (the “Series 2012 Bonds”), and the City’s Parks and Open Space Sales Tax Revenue Refunding Bonds, Series 2013 (the “Series 2013 Bonds”). The City is further authorized by the Ordinance to pledge and grant a lien, on a parity with the lien for the payment of the principal of, premium, if any, and interest on the Series 2014 Bonds, the Series 2013 Bonds, the Series 2012 Bonds, the Series 2009 Bonds, the Series 2005B Bonds and the Series 2005 Bonds, on the Pledged Revenues, the Bond Fund and the Revenue for the payment of the principal of, premium, if any, and interest on additional bonds or obligations (which may or may not be multiple-fiscal year obligations), upon satisfaction of certain conditions set forth in the Ordinance. This bond, including the interest hereon, is payable solely from and secured solely by the special funds provided in the Ordinance and shall not constitute a debt of the City within the meaning of any constitutional or statutory debt limitation or provision. THE ORDINANCE CONSTITUTES THE CONTRACT BETWEEN THE REGISTERED OWNER OF THIS BOND AND THE CITY. THIS BOND IS ONLY EVIDENCE OF SUCH CONTRACT AND, AS SUCH, IS SUBJECT IN ALL RESPECTS TO THE TERMS OF THE ORDINANCE, WHICH SUPERSEDES ANY INCONSISTENT STATEMENT IN THIS BOND. The City agrees with the owner of this bond and with each and every person who may become the owner hereof, that it will keep and perform all the covenants and agreements contained in the Ordinance. For the purpose of Section 265(b)(3)(B) of the Internal Revenue Code, the City has designated the Bonds as qualified tax-exempt obligations. The Ordinance may be amended or supplemented from time-to-time with or without the consent of the registered owners of the Series 2014 Bonds as provided in the Ordinance. It is hereby certified that all conditions, acts and things required by the State Constitution, the Charter, and the ordinances and resolutions of the City, to exist, to happen and to be performed, precedent to and in the issuance of this bond, exist, have happened and have been performed, and that the Series 2014 Bonds do not exceed any limitations prescribed by the State Constitution, the Charter or the ordinances of the City. This bond shall not be entitled to any benefit under the Ordinance, or become valid or obligatory for any purpose, until the Paying Agent shall have signed the certificate of authentication hereon. [remainder of this page intentionally left blank] P96 VIII.c A-4 IN WITNESS WHEREOF, the City has caused this bond to be executed with the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of the City Clerk, and has caused the seal of the City to be impressed or imprinted hereon, all as of the date set forth above. [SEAL] CITY OF ASPEN, COLORADO By Mayor Attest: By City Clerk P97 VIII.c A-5 CERTIFICATE OF AUTHENTICATION This is one of the Series 2014 Bonds described in the within-mentioned Ordinance. UMB BANK, N.A., as Paying Agent By Authorized Signatory Date of Authentication: P98 VIII.c A-6 [STATEMENT OF INSURANCE IF APPLICABLE] P99 VIII.c A-7 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite name and address of Transferee) (Tax Identification or Social Security No.) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. TRANSFER FEE MAY BE REQUIRED P100 VIII.c A-8 PREPAYMENT PANEL The following installments of principal (or portion thereof) of this Bond have been prepaid in accordance with the terms of the Indenture. Date of Principal Signature of Authorized Prepayment Representative of the Depository P101 VIII.c 1 STATE OF COLORADO ) ) SS. CITY OF ASPEN ) I, Linda Manning, the City Clerk of the City of Aspen, Colorado, do hereby certify that: 1. The foregoing pages are a true and correct copy of an ordinance resolution (the “Ordinance”) passed and adopted by the City Council (the “Council”) at a regular meeting held on October 13, 2014. 2. The Ordinance was introduced as an emergency ordinance, duly moved and seconded, and the Ordinance was adopted at the meeting of October 13, 2014, by the unanimous vote of Council members present or a vote of four Council members, whichever is less, as follows: Name “Yes” “No” Absent Abstain Steve Skadron, Mayor Adam Frisch Art Daily Ann Mullins Dwayne Romero 3. The Ordinance was duly moved and seconded, and the Ordinance was approved on second and final reading, as an emergency ordinance at the meeting of October 27, 2014 , by the unanimous vote of Council members present or a vote of four Council members, whichever is less , as follows: Name “Yes” “No” Absent Abstain Steve Skadron, Mayor Adam Frisch Art Daily Ann Mullins Dwayne Romero 4. The members of the City Council were present at such meetings and voted on the passage of such Ordinance as set forth above. P102 VIII.c 2 5. The Ordinance was authenticated by the signature of the Mayor, sealed with the City seal, attested by the City Clerk, and recorded in the minutes of the City Council. 6. There are no bylaws, rules or regulations of the City Council that might prohibit the adoption of the Ordinance. 7. Notices of the meetings of October 13, 2014, and October 27, 2014, in the forms attached hereto as Exhibit A were posted at the City Hall not less than 24 hours prior to each meeting in accordance with law. 8. The Ordinance was published by posting on the City’s internet website, www.aspenpitkin.com , as provided by Section 4.10(h) of the Home Rule Charter, on October __, 2014, which publication was within ten (10) days after final passage as required by Section 4.11 of the Home Rule Charter. WITNESS my hand and the seal of the City affixed this ____ day of October, 2014. City Clerk (SEAL) P103 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 1 SOURCES AND USES OF FUNDS City of Aspen Sale Tax Revenue and Refunding Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 Sales Tax Revenue Sales Tax Refunding Revenue Bonds, Bonds, Series Sources: Series 2014 2014 Total Bond Proceeds: Par Amount 4,180,000.00 1,310,000.00 5,490,000.00 Premium 302,550.40 127,904.75 430,455.15 4,482,550.40 1,437,904.75 5,920,455.15 Sales Tax Revenue Sales Tax Refunding Revenue Bonds, Bonds, Series Uses: Series 2014 2014 Total Project Fund Deposits: Project Construction Fund 4,390,000.00 4,390,000.00 Refunding Escrow Deposits: Cash Deposit 0.05 0.05 SLGS Purchases 1,405,514.00 1,405,514.00 1,405,514.05 1,405,514.05 Delivery Date Expenses: Cost of Issuance 43,398.91 13,601.09 57,000.00 Underwriter's Discount 27,170.00 8,515.00 35,685.00 Reserve Fund Surety 20,900.00 6,550.00 27,450.00 91,468.91 28,666.09 120,135.00 Other Uses of Funds: Additional Proceeds 1,081.49 3,724.61 4,806.10 4,482,550.40 1,437,904.75 5,920,455.15 P104 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 2 BOND DEBT SERVICE City of Aspen Sale Tax Revenue and Refunding Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/06/2014 05/01/2015 85,263.89 85,263.89 11/01/2015 370,000 2.000% 87,700.00 457,700.00 542,963.89 05/01/2016 84,000.00 84,000.00 11/01/2016 425,000 2.000% 84,000.00 509,000.00 593,000.00 05/01/2017 79,750.00 79,750.00 11/01/2017 430,000 2.000% 79,750.00 509,750.00 589,500.00 05/01/2018 75,450.00 75,450.00 11/01/2018 435,000 2.000% 75,450.00 510,450.00 585,900.00 05/01/2019 71,100.00 71,100.00 11/01/2019 310,000 3.000% 71,100.00 381,100.00 452,200.00 05/01/2020 66,450.00 66,450.00 11/01/2020 310,000 3.000% 66,450.00 376,450.00 442,900.00 05/01/2021 61,800.00 61,800.00 11/01/2021 320,000 2.500% 61,800.00 381,800.00 443,600.00 05/01/2022 57,800.00 57,800.00 11/01/2022 1,485,000 4.000% 57,800.00 1,542,800.00 1,600,600.00 05/01/2023 28,100.00 28,100.00 11/01/2023 450,000 4.000% 28,100.00 478,100.00 506,200.00 05/01/2024 19,100.00 19,100.00 11/01/2024 470,000 4.000% 19,100.00 489,100.00 508,200.00 05/01/2025 9,700.00 9,700.00 11/01/2025 485,000 4.000% 9,700.00 494,700.00 504,400.00 5,490,000 1,279,463.89 6,769,463.89 6,769,463.89 P105 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 3 BOND PRICING City of Aspen Sale Tax Revenue and Refunding Bonds, Series 2014 Maturity Yield to Call Call Bond Component Date Amount Rate Yield Price Maturity Date Price Serial Bonds: 11/01/2015 370,000 2.000% 0.320% 101.652 11/01/2016 425,000 2.000% 0.550% 102.860 11/01/2017 430,000 2.000% 0.850% 103.383 11/01/2018 435,000 2.000% 1.180% 103.183 11/01/2019 310,000 3.000% 1.510% 107.130 11/01/2020 310,000 3.000% 1.820% 106.663 11/01/2021 320,000 2.500% 2.140% 102.324 11/01/2022 1,485,000 4.000% 2.400% 111.564 11/01/2023 450,000 4.000% 2.550% 111.578 11/01/2024 470,000 4.000% 2.660% 111.683 11/01/2025 485,000 4.000% 2.700% 111.312 C 2.797% 11/01/2024 100.000 5,490,000 Dated Date 11/06/2014 Delivery Date 11/06/2014 First Coupon 05/01/2015 Par Amount 5,490,000.00 Premium 430,455.15 Production 5,920,455.15 107.840713% Underwriter's Discount -35,685.00 -0.650000% Purchase Price 5,884,770.15 107.190713% Accrued Interest Net Proceeds 5,884,770.15 P106 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 4 BOND SUMMARY STATISTICS City of Aspen Sale Tax Revenue and Refunding Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 First Coupon 05/01/2015 Last Maturity 11/01/2025 Arbitrage Yield 2.300865% True Interest Cost (TIC) 2.423821% Net Interest Cost (NIC) 2.548688% All-In TIC 2.592099% Average Coupon 3.575045% Average Life (years) 6.519 Weighted Average Maturity (years) 6.620 Duration of Issue (years) 5.892 Par Amount 5,490,000.00 Bond Proceeds 5,920,455.15 Total Interest 1,279,463.89 Net Interest 884,693.74 Total Debt Service 6,769,463.89 Maximum Annual Debt Service 1,600,600.00 Average Annual Debt Service 616,183.82 Underwriter's Fees (per $1000) Average Takedown Other Fee 6.500000 Total Underwriter's Discount 6.500000 Bid Price 107.190713 Par Average Average PV of 1 bp Bond Component Value Price Coupon Life change Serial Bonds 5,490,000.00 107.841 3.575% 6.519 3,380.75 5,490,000.00 6.519 3,380.75 All-In Arbitrage TIC TIC Yield Par Value 5,490,000.00 5,490,000.00 5,490,000.00 + Accrued Interest + Premium (Discount) 430,455.15 430,455.15 430,455.15 - Underwriter's Discount -35,685.00 -35,685.00 - Cost of Issuance Expense -57,000.00 - Other Amounts -27,450.00 -27,450.00 -27,450.00 Target Value 5,857,320.15 5,800,320.15 5,893,005.15 Target Date 11/06/2014 11/06/2014 11/06/2014 Yield 2.423821% 2.592099% 2.300865% P107 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 5 AGGREGATE DEBT SERVICE City of Aspen Sale Tax Revenue and Refunding Bonds, Series 2014 Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Revenue Revenue Revenue Revenue Revenue Sales Tax Refunding Sales Tax Refunding Refundiing Refunding Sales Tax Refunding Period Revenue Bonds, Bonds, Revenue Bonds Bonds, Series Bonds, Series Bonds, Revenue Bonds, Bonds, Aggregate Ending Series 2014 Series 2014 Series 2005B 2005 2009 Series 2012 Series 2012 Series 2013 Debt Service 11/01/2015 496,813.89 46,150 103,750 1,181,643.76 821,387.50 194,075 154,712.50 312,375 3,310,907.65 11/01/2016 451,200.00 141,800 1,177,250.00 823,087.50 192,575 154,712.50 312,375 3,253,000.00 11/01/2017 449,600.00 139,900 1,180,225.00 821,087.50 191,075 154,712.50 312,375 3,248,975.00 11/01/2018 452,900.00 133,000 1,178,225.00 821,975.00 199,575 154,712.50 312,375 3,252,762.50 11/01/2019 411,000.00 41,200 651,000.00 815,525.00 867,450 154,712.50 312,375 3,253,262.50 11/01/2020 401,700.00 41,200 821,800.00 1,519,800 154,712.50 312,375 3,251,587.50 11/01/2021 402,400.00 41,200 816,400.00 1,521,200 154,712.50 312,375 3,248,287.50 11/01/2022 529,400.00 1,071,200 72,800 154,712.50 1,422,375 3,250,487.50 11/01/2023 506,200.00 154,712.50 2,587,400 3,248,312.50 11/01/2024 508,200.00 154,712.50 2,590,400 3,253,312.50 11/01/2025 504,400.00 154,712.50 2,589,600 3,248,712.50 11/01/2026 834,712.50 834,712.50 11/01/2027 834,312.50 834,312.50 11/01/2028 838,312.50 838,312.50 11/01/2029 836,562.50 836,562.50 11/01/2030 839,212.50 839,212.50 11/01/2031 836,112.50 836,112.50 11/01/2032 837,412.50 837,412.50 5,113,813.89 1,655,650 103,750 5,368,343.76 5,741,262.50 4,758,550 7,558,475.00 11,376,400 41,676,245.15 P108 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 6 SOURCES AND USES OF FUNDS City of Aspen Sales Tax Revenue Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 Sources: Bond Proceeds: Par Amount 4,180,000.00 Premium 302,550.40 4,482,550.40 Uses: Project Fund Deposits: Project Construction Fund 4,390,000.00 Delivery Date Expenses: Cost of Issuance 43,398.91 Underwriter's Discount 27,170.00 Reserve Fund Surety 20,900.00 91,468.91 Other Uses of Funds: Additional Proceeds 1,081.49 4,482,550.40 P109 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 7 BOND DEBT SERVICE City of Aspen Sales Tax Revenue Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/06/2014 05/01/2015 62,513.89 62,513.89 11/01/2015 370,000 2.000% 64,300.00 434,300.00 496,813.89 05/01/2016 60,600.00 60,600.00 11/01/2016 330,000 2.000% 60,600.00 390,600.00 451,200.00 05/01/2017 57,300.00 57,300.00 11/01/2017 335,000 2.000% 57,300.00 392,300.00 449,600.00 05/01/2018 53,950.00 53,950.00 11/01/2018 345,000 2.000% 53,950.00 398,950.00 452,900.00 05/01/2019 50,500.00 50,500.00 11/01/2019 310,000 3.000% 50,500.00 360,500.00 411,000.00 05/01/2020 45,850.00 45,850.00 11/01/2020 310,000 3.000% 45,850.00 355,850.00 401,700.00 05/01/2021 41,200.00 41,200.00 11/01/2021 320,000 2.500% 41,200.00 361,200.00 402,400.00 05/01/2022 37,200.00 37,200.00 11/01/2022 455,000 4.000% 37,200.00 492,200.00 529,400.00 05/01/2023 28,100.00 28,100.00 11/01/2023 450,000 4.000% 28,100.00 478,100.00 506,200.00 05/01/2024 19,100.00 19,100.00 11/01/2024 470,000 4.000% 19,100.00 489,100.00 508,200.00 05/01/2025 9,700.00 9,700.00 11/01/2025 485,000 4.000% 9,700.00 494,700.00 504,400.00 4,180,000 933,813.89 5,113,813.89 5,113,813.89 P110 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 8 BOND PRICING City of Aspen Sales Tax Revenue Bonds, Series 2014 Maturity Yield to Call Call Bond Component Date Amount Rate Yield Price Maturity Date Price Serial Bonds: 11/01/2015 370,000 2.000% 0.320% 101.652 11/01/2016 330,000 2.000% 0.550% 102.860 11/01/2017 335,000 2.000% 0.850% 103.383 11/01/2018 345,000 2.000% 1.180% 103.183 11/01/2019 310,000 3.000% 1.510% 107.130 11/01/2020 310,000 3.000% 1.820% 106.663 11/01/2021 320,000 2.500% 2.140% 102.324 11/01/2022 455,000 4.000% 2.400% 111.564 11/01/2023 450,000 4.000% 2.550% 111.578 11/01/2024 470,000 4.000% 2.660% 111.683 11/01/2025 485,000 4.000% 2.700% 111.312 C 2.797% 11/01/2024 100.000 4,180,000 Dated Date 11/06/2014 Delivery Date 11/06/2014 First Coupon 05/01/2015 Par Amount 4,180,000.00 Premium 302,550.40 Production 4,482,550.40 107.238048% Underwriter's Discount -27,170.00 -0.650000% Purchase Price 4,455,380.40 106.588048% Accrued Interest Net Proceeds 4,455,380.40 P111 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 9 SOURCES AND USES OF FUNDS City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 Sources: Bond Proceeds: Par Amount 1,310,000.00 Premium 127,904.75 1,437,904.75 Uses: Refunding Escrow Deposits: Cash Deposit 0.05 SLGS Purchases 1,405,514.00 1,405,514.05 Delivery Date Expenses: Cost of Issuance 13,601.09 Underwriter's Discount 8,515.00 Reserve Fund Surety 6,550.00 28,666.09 Other Uses of Funds: Additional Proceeds 3,724.61 1,437,904.75 P112 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 10 BOND DEBT SERVICE City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 Annual Period Debt Debt Ending Principal Coupon Interest Service Service 11/06/2014 05/01/2015 22,750 22,750 11/01/2015 23,400 23,400 46,150 05/01/2016 23,400 23,400 11/01/2016 95,000 2.000% 23,400 118,400 141,800 05/01/2017 22,450 22,450 11/01/2017 95,000 2.000% 22,450 117,450 139,900 05/01/2018 21,500 21,500 11/01/2018 90,000 2.000% 21,500 111,500 133,000 05/01/2019 20,600 20,600 11/01/2019 20,600 20,600 41,200 05/01/2020 20,600 20,600 11/01/2020 20,600 20,600 41,200 05/01/2021 20,600 20,600 11/01/2021 20,600 20,600 41,200 05/01/2022 20,600 20,600 11/01/2022 1,030,000 4.000% 20,600 1,050,600 1,071,200 1,310,000 345,650 1,655,650 1,655,650 P113 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 11 BOND PRICING City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Maturity Bond Component Date Amount Rate Yield Price Serial Bonds: 11/01/2016 95,000 2.000% 0.550% 102.860 11/01/2017 95,000 2.000% 0.850% 103.383 11/01/2018 90,000 2.000% 1.180% 103.183 11/01/2022 1,030,000 4.000% 2.400% 111.564 1,310,000 Dated Date 11/06/2014 Delivery Date 11/06/2014 First Coupon 05/01/2015 Par Amount 1,310,000.00 Premium 127,904.75 Production 1,437,904.75 109.763721% Underwriter's Discount -8,515.00 -0.650000% Purchase Price 1,429,389.75 109.113721% Accrued Interest Net Proceeds 1,429,389.75 P114 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 12 SAVINGS City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Present Value Prior Refunding Annual to 11/06/2014 Date Debt Service Debt Service Savings Savings @ 2.3008649% 05/01/2015 33,300.00 22,750.00 10,550.00 10,433.32 11/01/2015 33,300.00 23,400.00 9,900.00 20,450.00 9,679.16 05/01/2016 33,300.00 23,400.00 9,900.00 9,569.07 11/01/2016 133,300.00 118,400.00 14,900.00 24,800.00 14,238.14 05/01/2017 31,300.00 22,450.00 8,850.00 8,360.70 11/01/2017 131,300.00 117,450.00 13,850.00 22,700.00 12,935.44 05/01/2018 29,300.00 21,500.00 7,800.00 7,202.09 11/01/2018 129,300.00 111,500.00 17,800.00 25,600.00 16,248.60 05/01/2019 27,300.00 20,600.00 6,700.00 6,046.49 11/01/2019 27,300.00 20,600.00 6,700.00 13,400.00 5,977.72 05/01/2020 27,300.00 20,600.00 6,700.00 5,909.73 11/01/2020 27,300.00 20,600.00 6,700.00 13,400.00 5,842.52 05/01/2021 27,300.00 20,600.00 6,700.00 5,776.07 11/01/2021 27,300.00 20,600.00 6,700.00 13,400.00 5,710.37 05/01/2022 27,300.00 20,600.00 6,700.00 5,645.42 11/01/2022 1,067,300.00 1,050,600.00 16,700.00 23,400.00 13,911.39 1,812,800.00 1,655,650.00 157,150.00 157,150.00 143,486.24 Savings Summary PV of savings from cash flow 143,486.24 Plus: Refunding funds on hand 3,724.61 Net PV Savings 147,210.85 P115 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 13 SUMMARY OF REFUNDING RESULTS City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Dated Date 11/06/2014 Delivery Date 11/06/2014 Arbitrage yield 2.300865% Escrow yield 0.079289% Value of Negative Arbitrage 29,916.53 Bond Par Amount 1,310,000.00 True Interest Cost 2.435621% Net Interest Cost 2.570556% Average Coupon 3.816467% Average Life 6.914 Par amount of refunded bonds 1,340,000.00 Average coupon of refunded bonds 5.128302% Average life of refunded bonds 6.867 PV of prior debt to 11/06/2014 @ 2.300865% 1,578,104.13 Net PV Savings 147,210.85 Percentage savings of refunded bonds 10.985884% Percentage savings of refunding bonds 11.237469% P116 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 14 SUMMARY OF BONDS REFUNDED City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Maturity Interest Par Call Call Bond Date Rate Amount Date Price Sales Tax Revenue Bonds, Series 2005B, 20052012: SERIALS 11/01/2016 4.000% 100,000.00 11/01/2015 100.000 11/01/2017 4.000% 100,000.00 11/01/2015 100.000 11/01/2018 4.000% 100,000.00 11/01/2015 100.000 11/01/2022 5.250% 1,040,000.00 11/01/2015 100.000 1,340,000.00 P117 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 15 PRIOR BOND DEBT SERVICE City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Annual Period Debt Debt Ending Principal Coupon Interest Service Service 11/06/2014 05/01/2015 33,300 33,300 11/01/2015 33,300 33,300 66,600 05/01/2016 33,300 33,300 11/01/2016 100,000 4.000% 33,300 133,300 166,600 05/01/2017 31,300 31,300 11/01/2017 100,000 4.000% 31,300 131,300 162,600 05/01/2018 29,300 29,300 11/01/2018 100,000 4.000% 29,300 129,300 158,600 05/01/2019 27,300 27,300 11/01/2019 27,300 27,300 54,600 05/01/2020 27,300 27,300 11/01/2020 27,300 27,300 54,600 05/01/2021 27,300 27,300 11/01/2021 27,300 27,300 54,600 05/01/2022 27,300 27,300 11/01/2022 1,040,000 5.250% 27,300 1,067,300 1,094,600 1,340,000 472,800 1,812,800 1,812,800 P118 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 16 ESCROW REQUIREMENTS City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Period Principal Ending Interest Redeemed Total 05/01/2015 33,300.00 33,300.00 11/01/2015 33,300.00 1,340,000.00 1,373,300.00 66,600.00 1,340,000.00 1,406,600.00 P119 VIII.c Sep 16, 2014 7:54 am Prepared by Stifel (SWESTCO:2014STX) Page 17 UNREFUNDED BOND DEBT SERVICE City of Aspen Sales Tax Revenue Refunding Bonds, Series 2014 Annual Period Debt Debt Ending Principal Coupon Interest Service Service 11/06/2014 05/01/2015 1,875 1,875 11/01/2015 100,000 3.750% 1,875 101,875 103,750 100,000 3,750 103,750 103,750 P120 VIII.c T AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.060 (E), ASPEN LAND USE CODE ADDRESS OF PROPERTY: Aspen, CO CHEDULED PUBLIC HEARING DATE: two , 20`� STATE OF COLORADO ) ss. County of Pitkin ) 1, Z 1`Q 4 (name, please print) being or representin an Applicant to the City of Aspen, Colorado, hereby personally certify that I have complied with the public notice requirements of Section 26.304.060 (E')/of the Aspen Land Use Code in the following manner: y Publication of notice: "By the publication in the legal notice section of an official paper or a paper of general circulation in the City of Aspen at least fifteen (15) days prior to the public hearing. A copy of the publication is attached hereto. Posting of notice: By posting of notice, which form .was obtained from the Community Development Department, which was made of suitable, waterproof materials, which was not less than twenty-two (22) inches wide and twenty-six (26) inches high, and which was composed of letters not less than one inch in height. Said notice was posted at least fifteen (15) days prior to the public hearing on the day of , 20 , to and including the date and time of the public hearing. A photograph of the posted notice (sign) is attached hereto. Mailing of notice. By the mailing of a notice obtained from the Community Development Department, which contains the infonnation described in Section 26.394.060(E)(2) of the Aspen.Land Use Code. At least fifteen (15) days prior to Y v..v_...._ :. the-public--hearing notice was hand delivered or mailed by first class postage n`1 prep'ai`d=U.''S"mail to all owners of property within three hundred (3 00) feet of the jr property subject to the development application. The names and addresses of propert-'own' shall be those on the current tax records of Pitkin County as they appeaiedyrio=iiore than sixty (60) days prior to the date of the public hearing. A copy of the owners and governmental agencies so noticed is attached hereto. Neighborhood Outreach: Applicant attests that neighborhood outreach, sumrnarized and attached, was conducted prior to the first public hearing as required in Section 26.304.035, Neighborhood Outreach. A copy of the neighborhood outreach summary, including the method of public Notification and a copy of any documentation that was presented to the public is attached hereto. (continued on next page) Mineral Estate On)ner Notice. By the certified mailing of notice, return receipt requested, to affected mineral estate owners by at least thirty (30) days prior to the date scheduled for the initial public hearing on the application of development. The naives and addresses of mineral estate owners shall be those on the current ' tax records of Pitkin County. At a minimum, Subdivisions, SPAs or PUDs that create more than one lot, new Planned Unit Developments, and new Specially Planned Areas, are subject to this notice zequirement. , Rezoning or teat amendment. Whenever the official zoning district map is in any way to be.changed or amended incidental to or as part of a general revision of this Title, or whenever the text of this Title is to be amended, whether such revision be made by repeal of this Title and enactment of a new land use regulation, or otherwise, the requirement of an accurate survey map or other, sufficient legal description of, and the notice to and listing of names and addresses of owners of real property in the area of the proposed change shall be waived. However, the proposed zoning map shall be available for public inspection in the planning agency during all business hours for fifteen (15) days prior to the public hearing on such amendments. apa4ture-� The foregoing "Affidavit of Notice" was acknowledged before me this/V day of OC9DbeJ- , 20LZ+,by � S LIC NOTICE RE:AMENDMENT TO THE CITY OF ASPEN. 1ANDUSEcoDE. WITNESS MY HAND AND OFFICIAL SEAL NOTICE IS HEREBY GIVEN that a public hearing will be held on Monday October 27,2014,at a meeting to begin at 5:00 p.m.before the Aspen City Council,Council Chambers,City Hall,130S. My commission expires: amalena endmenttoexpand the landing sites for Trans nd use e ferrable Development Right Certificates(TDRs). For further information,contact Sara Adams at the City of Aspen Community Development Depart- -Patu ff ment,130 S.Galena St.,Aspen,CO,(970) Notary Public 429-2778,sara.adams®cityofaspen.com .�,,,,,�r„ ,� slSteven Skadron,Mayor - KAREN REED PATTERJ Aspen ciryCouncil NOTARY PUBLIC Published in the Aspen Times on October 9.2014 STATE OF COLORADO (1osn3s2) -= NOTARY ID#199640021767 ATTACHMENTS AS APPLICABLE: [MY Commission Expires F6bruary 15 • COPY OF THE PUBLICATION • PHOTOGRAPH OF THE POSTED NOTICE (SIGN) • LIST OF THE OWNERS AND GOVERNMENTAL AGENCIES NOTICED BY MAIL • APPLICANT CERTIFICATION OF MINERAL ESTAE OWNERS NOTICE AS REQUIRED BY C.R.S. §24-65.5-103.3 Sara Adams From: Steve Falender <falender@comcast.net> Sent: Tuesday, October 14, 2014 9:17 AM To: Sara Adams Cc: Steve Falender Subject: RE:TDR changes Sara, Thanks for the information on minimum lot size. I am opposed to allowing more than 1 TDR per residence.. I also believe houses and duplexes built in the last 10 years on 6000 SF single family lots and 9000 SF duplex lots are as large as they should be, and TDR's should land in neighborhoods with bigger sites and where additional size is less noticeable. Thanks for your reply! Steve From:Sara Adams [mailto:sara.adams cityofaspen.com] Sett:Tuesday, October 14, 2014 8:27 AM To: Steve Falender Subject: RE:TDR changes Hi Steve, Thank you for your letter. Currently TDRs in the R6 zone district are only allowed to land on lots'that are 6,000 sf or larger for single family homes and 9,000 sf or larger for duplex homes. Do you propose that we increase the minimum lot size to land TDRs? Or are you opposed to allowing more than 1 TDR per residence? Thanks for the clarification. Best, Sara Sara Adams,AICP Senior Planner I City of Aspen 130 S. Galena Street, 3rd floor Aspen CO 81611 970/429-2778 www.aspenpitkin.com Notice and Disclaimer: This message is intended only for the individual or entity to which it is addressed and may contain information that is confidential and exempt from disclosure' pursuant to applicable law. If you are not the intended recipient,please reply to the sender that you have received the message in error and then delete it. Further, the information or opinions contained in this email are advisory in nature only and are not binding on the City of Aspen. If applicable,the information and opinions contain in the email are based on current zoning,which is subject to change in the future,and upon factual representations that may or may not be accurate. The opinions and information contained herein do not create a legal or vested right or any claim of detrimental reliance. ._.._... . From: Steve Falender [mailto:falender@comcast.net] Sent: Monday, October 13, 2014 7:12 PM To: Steve Skadron; Adam Frisch; Art Daily; Ann Mullins; Dwayne Romero Ce: Sara Adams; Steve Falender Subject: TDR changes Dear Council, 1 As I have written to Council in the past, I am concerned about TDR's landing on our relatively small West End lots. I disagree with the proposal to increase the number of TDR's allowed on small (9000 SF) duplex lots, and, in fact, would like to dis-allow any TDR's on single family lots of less than 6000 SF. I ask you to take a look at the recent single family homes and duplex developments in the West End and ask yourselves: should we allow them to be bigger or are they already really large for the lot size? I think our current codes already allow very large homes and duplex developments, and adding TDR's to increase size would be detrimental to the neighboring homes. TDR's should land on sites where they do not adversely impact neighbors. The re-sale market for TDR's will be healthy when the price and demand reach a balance. Thank you. Steve Falender 603 W. Gillespie St. i z