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HomeMy WebLinkAboutLandUseCase.CR.Buttermilk Metro.A 107-002735- A107-00 Buttermilk Metro District Service Plan Countv Referral r i THE C[TY OF ASPEN City of Aspen Community Development Department CASE NUMBER PARCEL ID NUMBER PROJECT ADDRESS PLANNER CASE DESCRIPTION REPRESENTATIVE DATE OF FINAL ACTION A 107-00 2735-xxx-xx-xxx Buttermilk Metro District Services Fred Jarmin plan county referral Suzanne Wolff CLOSED BY Amy DeVault • MEMORANDUM TO: Suzanne Wolff THRU: Julie Ann Woods, Community Development Director Joyce Ohlson, Community Development Deputy Director FROM: Fred Jarman, City of Aspen Planner KI RE: Referral Comments on the proposed West Buttermilk Metro Water District DATE: September 5, 2000 The City Planning Office reviewed the proposal for the _ _ - Buttermilk Metro`` - Water District on August 31, 2000 and understands that the - applicant submitted a 4 "Service Plan" for the proposed West Buttermilk Metropolitan District who's service area would encompass _ West Buttermilk �� y Subdivision, Eagle��> Pines Subdivision, -- West Buttermilk Pfister tracks 1-5, Airport Ranch Property, Aspen Pitkin County Airport, Owl Creek Ranch, East Owl Creek PUD, and all lands immediately adjacent to the proposed "District" which could include Pitkin County lands and Aspen Skiing Company and other private landowners. The creation of the District would be to 1) provide the means by which property owners in the District will obtain funding for the acquisition and construction of public improvements (including a community water system. fire protection, and reconstruction of West Buttermilk Road) and 2) will organize and collect taxes to ensure the repayment of debt and long-term management and operation of those improvements. The City of Aspen Community Development Department Staff has the following comments. 1. Regarding the inclusion of the Aspen Pitkin County Airport and Eagle Pines in the proposed service area, Staff raised concerns regarding the potential arrangement where a private Water Service District would control the water system and service for a public entity such as the Aspen Pitkin County Airport which already receives City water service. This results in unnecessary service duplication. Staff finds that the City should remain the sole provider of water service to a municipal entity and does not support an arrangement where a private entity / water district would provide water service. Staff also feels that detailed discussions need to occur between the City of Aspen Water Department (Phil Overynder) and the proposed West Buttermilk Metropolitan District; 2. Staff is particularly concerned with the ability, as set out in the service plan, which would allow "all adjacent properties" to the service area boundary to be pulled into the service district. Staff does not support this arrangement because it would open the door to intensified densities and increased subdivision thereby eroding the existing rural green belt containing open space currently separating Snowmass Village and Buttermilk, Airport, and the Aspen Airport Business Center. Additionally, this proposed action does not concur with the intent of the Urban Growth Boundary who's purpose is to focus development inside the boundary around Aspen so that corridors such as the Owl Creek corridor be maintained as "a rural buffer between Aspen and Snowmass (Village). " This is intended to reduce the spread of development into the countryside thereby maintaining a rural character between the communities of Aspen and Snowmass Village. If the Board of County Commissioners approves the creation of this "District", it should only do so with a condition that "all adjacent lands" are not allowed to enter into the district. 3. The City Water Department is concerned with several aspects of the proposal to create a West Buttermilk Metropolitan District. It was indicated that the area proposed for service is water limited as a result of the existing geology producing minimal amounts, which are not perfectly potable unless the District taps an aquifer, which could be 2,000 ft. down past shale. It is Staff s understanding that the District is proposing to enter into an arrangement with Pitkin County for existing water rights at the Airport. Further, the Water Department commented that this arrangement would essentially create competing water companies, which may not be in the best interest of the City of Aspen given their location. Concern arose to the feasibility of this independent system and its proposed water source. The fear is that once a system is in place and the water source fails to produce as expected, then the District would turn to the City for assistance from their excess capacity which is earmarked for areas inside the Urban Growth Boundary (UGB) and not leapfrog development outside the UGB. With the exception of West Buttermilk and the Airport Ranch Property, the subject property is outside of the UGB as identified in the 2000 Aspen Area Community Plan. 4. Staff is concerned with the impact "TAXCUT 2000" may have on the ability of the West Buttermilk Metropolitan District to impose sufficient taxes on the service area to cover the mill levy (property tax rate for the proposed district). In effect, the tax cut will result in a $25.00 decrease per property for each tax year beginning in 2002. The proposed District is formed to have the authority to tax the property owners to create funds to pay for the infrastructure improvements. The tax cut will result in limiting the taxing district's ability to solicit funding in the future as the tax cut is reoccurring per year. City of Aspen Community Development Department Staff Recommendation The City of Aspen recommends the Pitkin County Board of County Commissioners consider the following: 1. The applicant should hold detailed discussions with the City of Aspen Water Department regarding system capability, water source, and conflicts with possible duplication of water services to the Pitkin /Aspen Airport and Eagle Pines Subdivision; 2. The proposed West Buttermilk Metropolitan District Service Plan exclude the ability to pull in "all adjacent lands" into the service area and District; and 3. The applicant should clearly delineate the proposed "District" boundaries and the "service area" boundaries on two different maps of the area. 4. Discussion should be held as to the impacts TAXCUT 2000 may have on the taxing ability the District is proposing in order to fully cover the proposed infrastructure and its future operability and maintenance. 0 Keen L. Patrick Brian L. Stowell Scott C. Miller Ramsey L. Kropf* Sara M. Dunn `licensed in AZ, CO, WY PATRICK & STOWELL Attorneys at Law UCH October 5, 2000 COMMUNITY DEVELOPMENT Board of County Commissioners 530 E. Main Street Aspen, CO 81611 Certified Mail #P440-901-135 City of Aspen/Planning Department Attn: Fred Jarman 130 S. Galena Street Aspen, CO 81611 Certified Mail #P440-901-136 Re: Proposed Formation of the Buttermilk Metropolitan District (our file 595a) Dear Ladies and Gentlemen: Pursuant to C.R.S. 32-1-304, enclosed is your Notice of Hearing on Petition in the Organization of Buttermilk Metropolitan District, Pitkin County, Colorado. Very truly yours, PATRICK & STOWELL, P.C. A Professional Corporation Main Office: j 730 E. Durant Ave. By: vw Suite 200 Sara M. Dunn Aspen, CO 81611 dunn(d),waterlaw.eom 970.920,1028 Te 1 970.925.6847 Fax SMD/slp Anzona Office: 310 S. Mill Ave. Suite 201 Tempe, AZ 85281 480.921.4044 Tel 480.921.8688 Fax wwwwaterlawcom W:\Buttermilk Metro Dist\595 A\Letters\32-1-304Letter.wpd 0 PUBLIC NOTICE DISTRICT COURT, PITKIN COUNTY, COLORADO Civil Action No. OOCV281-2 NOTICE OF HEARING ON PETITION IN THE ORGANIZATION OF BUTTERMILK METROPOLITAN DISTRICT, PITKIN COUNTY, COLORADO PUBLIC NOTICE IS HEREBY GIVEN that there was filed in the District Court in and for the County of Pitkin and State of Colorado, on the 281h day of September, 2000, a Petition entitled "In the Organization of Buttermilk Metropolitan District, Pitkin County, Colorado', which Petition prays for the organization of a metropolitan district, pursuant to the provisions of Title 32, Article 1, Part 3, Colorado Revised Statutes, as amended. The District will consist of the entire West Buttermilk Subdivision, Eagle Pines Subdivision, the West Buttermilk Pfister Tracts 1-5, the Owl Creek Ranch and East Owl Creek P.U.D. The proposed District boundaries are described in the legal description attached as Exhibit "A". The proposed District will have all the powers of a metropolitan district as enunciated in C.R.S. 32-1-103(10) as limited by the Service Plan approved by the Pitkin County Board of County Commissioners by resolution on September 27, 2000. No later than ten days before the Hearing, the owner of any real property within the proposed District may file a petition with the Court stating reasons why said property should not be included in the proposed District and requesting that said real property be excluded therefrom. Such petition shall be duly verified and shall describe the property sought to be excluded. The Court shall hear said petition and all objections thereto at the time of the Hearing on the Petition for Organization and shall determine whether, in the best public interest, said property should be excluded or included in the proposed special district. NOTICE IS FURTHER GIVEN that by an Order of the District Court in and for the County of Pitkin, a public hearing on said Petition for organization will be held at the hour of 8:30 a.m., at the Garfield County Court located at 109 8`h Street, Glenwood Springs, CO on Tuesday, the 241h day of October, 2000, at which time and place any interested parties or persons may appear if they so desire, within the limitations provided by law. Such interested parties, as defined by the Control Act, Title 32, Article 1, Part 2, C.R.S., as amended, are as follows: 1. The governing body of each municipality or special district which has levied an ad valorem tax within the next preceding tax year and which has boundaries within a radius of three miles of the proposed District boundaries; and 2. Any residents or property owners within the proposed special District. Any such interested party or persons who has appeared and presented his or her objections before the Board of County Commissioners of Pitkin Count shall also have the right to appear and be heard at the hearing on the Court Petition for the organization of the District. In the event the Court orders that the question of the organization of the proposed District be submitted to the electors of the proposed District at an election to be held for that purpose, at said election the electors of the proposed District shall elect five electors of the District. Those elected shall constitute the Board of Directors of the District, if organized. Two of the original directors are to serve until they or their successors are elected and qualified at the next regular election occurring in any year following that in which the proposed District is organized, and three of the original directors are to serve until the second regular election. Pursuant to Section 32-1-804.3, C.R.S., a nomination for director to serve either term may be made by self - nomination and acceptance form or letter as provided in Section 32-1-804.3, C.R.S. with the time and manner of filing such form or letter as directed in the order of the District Court authorizing the election. /s/ Clerk of the District Court Pitkin County, Colorado Exhibit A The proposed Buttermilk Metropolitan District includes the following real property within the boundaries of the District: Eagle Pines Subdivision: Reception #326461, Book 24, Page 93; Reception #373545, Book 35, Page 43; Reception #384655, Book 38, Page 3; Reception #415121, Book 44, page 69; West Buttermilk Subdivision: Reception #427986, Book 48, Page 71; Reception #443362, Book 53, Page 44; Reception #442957, Book 53, Page 34; East Owl Creek Subdivision: Reception #312911, Book 22, Page 82; Reception #313868, Book 598, Page 254; Reception #346317, Book 29, Page 37; Owl Creek Ranch Subdivision: Reception #286842, Book 19, Page 45; Reception #334606, Book 26, Page 95; Reception #351663, Book 30, Page 14; Reception #432795, Book 50, Page 36; West Buttermilk Pfister Tracts: Reception #360048, Book 32, Page 39 ; Reception #436585, Book 51, Page 60; Reception #437801, Book 51, Page 77; Reception #442956, Book 53, Page 33 as recorded with the Pitkin County Clerk and Recorder's Office. The "service area" of proposed District includes Pitkin County's Airport Ranch Property and the Aspen Pitkin County Airport. Published in the October 7, 2000 edition of the Aspen Times, weekend edition. A �l • 0 lu 1 3iu ti]7\►11Tilui TO: Pitkin County Planning and Zoning Commission FROM: Suzanne Wolff, Senior Planner* RE: West Buttermilk Metropolitan District Service Plan DATE: August 29, 2000 SUMMARY: The Applicant has submitted a Service Plan for the proposed West Buttermilk Metropolitan District. The District will provide the means by which property owners within the District will obtain funding for the acquisition and construction of public improvements and will organize and collect taxes to ensure the repayment of any debt and the long-term management and operation of those improvements. The District is proposed in order to construct a new community water system to serve 71 existing, County approved lots with potable drinking water and improved fire protection, and to reconstruct West Buttermilk Road. APPLICANT: West Buttermilk Metropolitan District REPRESENTATIVES: Sarah Dunn and Gary Beach DISTRICT AND SERVICE AREA BOUNDARIES: The proposed District includes properties within the Pitkin County West Buttermilk Improvement District, a portion of the Eagle Pines Subdivision, the West Buttermilk Pfister Tracts 1-5, the Owl Creek Ranch PUD and the East Owl Creek PUD (shown on Exhibit B of the application). Additional areas within the service area, which is the area legally permitted to be served by the District, include lands within Buttermilk ski area, Pitkin County's Airport Ranch property, the Airport, and lands immediately adjacent to the proposed District. REFERRAL COMMENTS: Staff has referred the application to the City of Aspen Planning and Engineering staffs, County Engineer, Environmental Health and the County Attorney, however, they have not had an opportunity to comment, given the Applicant's request to expedite the Planning Commission's consideration of the application. AUTHORITY: In accordance with the requirements of the Special District Act (CRS 32-1-101 et seq.), the Planning Commission shall submit a recommendation on a special district service plan to the Board of County Commissioners. The County has the authority to approve the proposed district, if the following can be demonstrated, pursuant to CRS 32-1-203, et seq.: l . There is sufficient existing and projected need for organized service in the area to be served. 2. That existing service in the area to be serviced by the proposed district is inadequate for present and projected needs. 3. The proposed district is capable of providing economical and sufficient service within its proposed boundary. 4. The District has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. The County shall also consider the following: Ir 0 0 1. Adequate service is not, or will not be, available to the area through the county or other existing municipal or quasi -municipal corporations, including existing special districts, within a reasonable time and on a comparable basis. 2. The facility and service standards of the proposed special districts are compatible with the facility and service standards for each county within which the proposed special district is to be located and each municipality which is an interested party. 3. The proposal is in substantial compliance with a master plan. 4. The proposal is in compliance with any duly adopted county, regional, or state Iona -range water quality management plan for the area. 5. The creation of the proposed special district will be in the best interests of the area proposed to be served. EXISTING CONDITIONS: The City of Aspen currently provides potable water and irrigation water service to the base of the Buttermilk ski area and to the Eagle Pines Subdivision. The organizers of the District negotiated with the City to provide water to the West Buttermilk area, but the City concluded that they did not have the capacity to provide water service to this area. The properties within the proposed District are all served by individual wells. LAND USE ISSUES: Service Area: The Service Plan does not include a map identifying the additional lands to be included within the service area. Staff is concerned with which "lands immediately adjacent to the proposed District" may be included within the service district, particularly lands in the Owl Creek area. According to the Applicant, the only additional lands to be included within the service area are adjacent properties owned by the County, including the Airport and the Airport Ranch property. Extra -Territorial Service: The Applicant states that adjacent properties may receive services from the District at the sole discretion of the District's Board of Directors through an "Extra -Territorial Service Agreement," and by payment of all appropriate fees. If an "extra -territorial" property utilizes the roads within the District, it is appropriate for that property to participate in the District. However, since this area is outside of Basalt's urban growth boundary, it is not appropriate for the District to provide water or sewer service to extra -territorial properties without the consent of the County. Sufficient Need/Adequacy of Existing Service: Wells within the West Buttermilk area are not providing an adequate quantity or quality of water for the existing residences. Staff agrees that a community water system is necessary in this area to provide a safe and reliable level of service. According to the Applicant, the existing wells and community systems in Owl Creek "do not generally provide the quantity, quality, or reliability of water supplies desired to meet the approved land uses or demands of the property." It is, unclear to staff whether or wh,- the existing wells in the Owl Creek area are inadequate, and what uses will be accommodated by the inclusion of this area within the Metropolitan District. Provision of water service within the District is also proposed to improve fire protection within the area. The only fire hydrant in the West Buttermilk area is within the Eagle Pines Subdivision. To fight a fire, the Fire Department would have to draft water from the hydrant and shuttle it to the location of the fire. Water tanks in the Owl Creek area provide water to hydrants within the Owl Creek and East Owl Creek Subdivisions. 1r � Facility and Service Standards: The Applicant states that the water supply and distribution system will be designed to Pitkin County or Town of Basalt standards, whichever is more comprehensive to accommodate potential future service by one of those entities. 1041 Review: Implementation of the service plan is subject to compliance with the applicable provisions of Section 3-80 (1041 Environmental Hazard Areas) and Section 3-90-020 (Site Selection of Major New Domestic Water and Sewage Treatment Systems and Major Extensions) of the Land Use Code. Compliance with Master Plans and County Policies: Only a portion of the proposed Metropolitan District (the lower portion of West Buttermilk and along Owl Creek Road to the Airport Ranch property) is within the Urban Growth Boundary ("UGB") designated by the Aspen Area Community Plan ("AACP"). The AACP states, "Growth should be accommodated within the tightly delineated boundary, and the County should not approve or provide infrastructure to support development outside of it." In this case the infrastructure, specifically water service, is not proposed to support additional development, but primarily to improve service for existing development. Given the health/safety issues with the existing wells in the West Buttermilk area, creation of a community water system may be appropriate, even though a portion of this area is outside of the UGB. However, the Owl Creek area is located entirely outside of the UGB, and it does not appear that the provision of water service to this area is necessary from a health/safety perspective. Provision of water service to the West Buttermilk area, given the health/safety issues, is consistent with Land Use Policy 2-170, Adeq_.ate Provision for Water Needs, which states, "It is the policy of the County to insure the availability of a water supply of adequate quality, quantity, pressure and dependability for fire protection and support of a proposed land use..." However, provision of water service to the Owl Creek area is not consistent with this policy, since it has not been demonstrated that the existing water source is inadequate. In addition, it has been a longstanding policy of the Board of County Commissioners to prohibit the extension of services to the Owl Creek area. Land Use Policy 2-210, Logical Extension of Utilities, states, "It is the policy of the County to regulate public and private utility extensions. Areas served by such extensions must be found suitable for development in accordance with adopted comprehensive plans and the policies and regulations of the Land Use Code." While the intent of the District is only to serve properties with existing development approvals from the County and not to encourage further development, extension of water service to the Owl Creek area is inappropriate, given its location outside of the UGB. Prohibiting provision of water service to extra -territorial properties without the consent of the County is consistent with the County's policies to insure that the use and development of land within the County is consistent with adopted County plans. FINANCIAL ISSUES: Debe Nelson, Pitkin County Finance Director has prepared a financial analysis of the proposed District, which is attached for reference. RECOMY[ENDATION: Staff recommends that the Planning and Zoning Commission forward a recommendation to the Board of County Commissioners to approve the West Buttermilk Metropolitan District Service Plan, subject to the following conditions: 1. The boundary of the Metropolitan District shall be amended to exclude the Owl Creek Ranch PUD and the East Owl Creek PUD. 2. Prior to review of the Metropolitan District Service Plan by the BOCC, the Applicant shall delineate the proposed service area. r 3. Implementation of the service plan, including installation of facilities for a new water supply and distribution system, is subject to review and approval by the County, subject to compliance with the applicable provisions of Section 3-80 (1041 Environmental Hazard Areas) and Section 3-90-020 (Site Selection of Major New Domestic Water and Sewage Treatment Systems and Major Extensions) of the Land Use Code. 4. The District shall enter into an Intergovernmental Agreement with the County and potentially with the City of Aspen to ensure that facilities are consistent with County and City standards. The Agreement shall insure that the new water system is designed exclusively for the use of the members of the District. The District shall not provide waterservice to extra -territorial properties without the consent of the County. The District shall comply with The Aspen Fire Protection District's standards for water supply and hydrants for fire -fighting purposes. Attachments A. Memo from Debe Nelson, Pitkin County Finance Director Application provided separately ' Ms. Wolff is a professional planner with a Bachelor's degree in Urban Studies from the University of Pennsylvania, and is a member of the American Institute of Certified Planners. Ms Wolff has worked for the Aspen/Pitkin County Community Development Department for 8 years, and as a Planner within that department for 4 years. In her planning position, Ms. Wolff has reviewed numerous land use applications pursuant to the Pitkin County Land Use Code. WEST BUTTERMILK METROPOLITAN DISTRICT SERVICE PLAN A. GENERAL REVIEW Section A.1 Introduction. This service plan ("Service Plan") for the Buttermilk Metropolitan District shall function as the initial Service Plan for a special district proposed to be organized to serve the needs k �v of existing developed and undeveloped lands in Pitkin County, Colorado. These needs include, but are not limited to, the construction of a new community water system for potable water purposes and fire protection, and the reconstruction of West Buttermilk Road. The District will provide the means by which property owners within the Buttermilk Metropolitan District and its service area will obtain funding for the acquisition and ,\ construction of public improvements. Further, the Buttermilk Metropolitan District will provide the institutional organization and mechanism for the collection of taxes and revenues to ensure the repayment of any debt and the long term management and operation of the special district and all public improvements. The financial plan contained in Exhibit D was written to cover the cost of constructing, maintaining and operating the public infrastructure for the Buttermilk area including West Buttermilk Subdivision, including properties within the Pitkin County West Buttermilk General Improvement District, a portion of the Eagle Pines Subdivision, the West Buttermilk Pfister Tracts 1-5, the Owl Creek Ranch P.U.D., and the East Owl Creek P.U.D. Included within the proposed initial service area are lands within Buttermilk Ski Area, Pitkin County's Airport Ranch Property, the Aspen Pitkin County Airport and lands immediately adjacent to the proposed District (all collectively referred to herein as the District's Service Area). The initial financial plan includes the issuance of debt for the purpose of constructing a new potable water supply, water treatment and water distribution system, and the reconstruction of West Buttermilk Road. Initial facilities to be constructed will include infrastructure both inside and outside of the District's corporate boundaries. The extension of facilities or the extension of water service to additional portions of the service area, including service to Pitkin County lands, will occur only after subsequent financial analyses are completed which document financial feasibility of any additional facilities or service to be provided. The financial plan establishes a schedule for the collection of ad valorem taxes, fees and charges to fairly assess property owners for their pro rata share of capital, operating and maintenance costs for all improvements within the district. It is intended that mill levies will be set according to facility and infrastructure requirements within the District. For example, Eagle Pines will not receive water service from the District and therefore it is not intended that any mill levy for Eagle Pines would recover any costs associated with the water system. Similarly, it is not anticipated that lands belonging to Pitkin County, East Owl Creek or Owl Creek Ranch would pay any costs associated with the construction, operation or maintenance of roads within the Eagle Pines and West Buttermilk area, and specifically, it is not intended that these entities would pay any portion of the costs of constructing or maintaining West Buttermilk Road that are unrelated to the construction of the water system. It is anticipated that property owners within West Buttermilk Subdivision, the East Owl Creek subdivision, Owl Creek Ranch and the Pfister Tracts will pay property taxes for the design, construction and installation of a new potable water system to serve an estimated seventy-one existing lots. It is also presently intended that should Pitkin County determine in the future that it is in the best interest of its constituents to receive water service from the District, the actual cost of providing water service, including a pro-rata reimbursement of then existing facility capacity used to serve those future needs, and then existing water rates and charges would be the financial responsibility of the County or its constituents. While it is understood the infrastructure to be constructed has a physical and economic life expectancy, the Board of Directors for the District will be solely responsible for future decisions regarding replacement and funding of capital expenditures. Buttermilk Metropolitan District - Service Plan Page 2 Section A.2 District Description. Buttermilk Metropolitan District, hereinafter known as "The District," or "District," is intended to provide the municipal services described herein to the benefit of residents and landowners within the District's boundaries and the boundaries of its service area, both of which are located within Pitkin County near the Aspen-Pitkin County Airport The adoption of this service plan is intended to ensure the proper coordination of powers and authorities of the District and Pitkin County and will help avoid confusion regarding the separate, but coordinated purposes of both governments. The general provisions of this plan apply only to the Buttermilk Metropolitan District which shall be solely responsible for the operation and maintenance of this plan and the facilities and services it includes. The "General Financial Plan" discussed in Section D, refers to an operating and maintenance plan which will be used to facilitate the long term operation and maintenance of the public water supply and distribution system throughout all portions of the District and its service area, except Eagle Pines, and public roads within West Buttermilk and Eagle Pines. The District will be responsible for managing the operation of all facilities and improvements relating to the public water system and roads, and will be responsible for the cost of operation and maintenance of these public amenities. The District also anticipates the provision of its services to lands directly adjacent to the District including portions of Pitkin County. The District may provide its services to property owners within its service area by inclusion of those properties within the district or through an "Extra -Territorial Service Agreement." The provision of District services within the service area is anticipated to reduce the proliferation of independent facilities and infrastructure and to improve the overall level of health, safety, protection and responsibility for services available within the service area. Provision of a community water system is intended to improve fire safety and suppression capabilities throughout the District's service area. Buttermilk Metropolitan District - Service Plan Page 3 K The District may enter into agreements under which the District may seek to contract with other entities for the provision of annual operations and maintenance services and management services such as accounting, budget planning, record keeping and basic district administration. Section A.3 Benefits of a Metropolitan District The establishment of the Buttermilk Metropolitan District as the entity which will own and operate the roads throughout the West Buttermilk area, and the public water supply and distribution facilities throughout the District's service area will allow for the collection of fees, charges and tax revenues sufficient to pay the costs of constructing, maintaining and operating the capital improvements necessary to serve its constituency and service customers. The creation of the District will also provide several benefits for the inhabitants of the service area, including: (a) coordinated administration of construction and operation of public improvements and delivery of improvements in a timely manner; and (b) maintenance of a reasonable tax burden on all areas of the District through controlled management and operation of public improvements and services. Each of these concepts is addressed in greater detail in the following paragraphs. 1. Debt. The proposed new water supply, treatment and distribution system will be funded through the issuance of debt. Formation of the District creates a legal entity through which the debt may be obtained. The metropolitan district structure will also assure that the implementation of public facilities will be primarily administered by an elected board of directors consistent with the long term programs set forth in this Service Plan. Buttermilk Metropolitan District - Service Plan Page 4 2. TABOR Considerations. It is presently planned that the District will construct new roads and public water facilities intended to serve within its corporate boundaries. It is also anticipated that the District would provide future potable water supplies and fire protection to Pitkin County's Airport Ranch property and may provide additional supplies to the Aspen-Pitkin County Airport. Using revenues generated by taxes, service charges and fees, the District will own and operate all of the roads and public water facilities intended to serve lands within the Service Area. Costs of operating and maintaining the District and its facilities may also be partially funded by an operating mill levy and the District will be allowed to adjust its mill levy for that purpose pursuant to electoral approval obtained at the outset. This allows the District to react operationally to unpredictable swings in service needs, such as heavy snow years requiring increased operations and costs. The District will ensure compliance with all applicable laws and that budgets for annual operations comply with the TABOR Act or other statutory spending limitations. 3. Assured Development in Accordance with County Approvals. Finally, the establishment of a district can assure the facilities constructed will serve no more, nor less, than what the County approves as part of this Service Plan process, and as part of the County's normal planning process for areas within the District. With the exception of Pitkin County's Airport Ranch property, the District's service area is substantially comprised of existing approved subdivisions and Planned Unit Developments. Buttermilk Metropolitan District - Service Plan Page 5 B. GENERAL PLANS FOR FACILITIES AND SERVICE Section B.1 Introduction The facilities, structures and services to be constructed and provided within the Buttermilk Metropolitan District will serve residents and visitors of West Buttermilk and Pitkin County. In order to properly manage the provision of these essential services it is proposed that the District be organized to act as the central service providing entity. This Service Plan is submitted in accordance with Part 2 of the Special District Act (§32-1- 201 et seq., C.R.S.). It defines the powers and authorities of, as well as the limitations and restrictions on Buttermilk Metropolitan District. It outlines the special district services to be provided by the proposed District. The sections, tables, and appendices of this service plan will demonstrate both a need for the organization of a special district as well as the ability of the proposed District to provide economical and efficient municipal services to the proposed service area. This document has been prepared by Beach Resource Management, LLC of Aspen, Colorado, for the District's proponents. Section B.2 Statutory Requirements In order to document the ability of the proposed metropolitan district to reliably and perpetually provide the core services being proposed, the requirements of C.R.S. § 32-1- 203, et seq., must be met. This statute provides that Pitkin County shall have the authority to approve the proposed district if the following can be satisfactorily demonstrated: 1. There is sufficient existing and projected need for organized service in the area to be served. 2. That existing service in the area to be served by the proposed district is inadequate Buttermilk Metropolitan District - Service Plan Page 6 for present and projected needs. 3. The proposed district is capable of providing economical and sufficient service within its proposed boundary. 4. The District has, or will have the financial ability to provide the proposed services on a reasonable basis. The Service Plan must also show that an adequate service (of the type of services to be included within the District) is not available through the County or some other municipal government within a reasonable time or on a comparable basis; that the facility and service standards are compatible with standards of the County; the proposed service plan is in substantial compliance with the Pitkin County Development Plan and any duly adopted County, regional or state long range water quality management plan for the area; and that the creation of the District will be in the best interests of the area proposed to be served. This service plan addresses each of these requirements and the plan demonstrates that all requirements of C.R.S. § 32-1-202 and 203 will be satisfactorily met. Section B.3 Proposed Services The West Buttermilk Home Owners Association, Eagle Pines Subdivision, and Aspen Skiing Company are presently responsible for the operation and maintenance of a public road system and provides for street improvements and safety protection within the West Buttermilk area. The Owl Creek Ranch Homeowners and the East Owl Creek P.U.D. Homeowners are responsible for operations and maintenance of their individual wells and water systems. There is an immediate need for updating the West Buttermilk road system and further, due to the general geology of the area and the limited ability of many homeowners to produce an adequate and reliable source of clean potable water from individual wells, a community water system is proposed to be constructed to provide safe, reliable drinking Buttermilk Metropolitan District - Service Plan Page 7 water and fire protection throughout the West Buttermilk area. As of the date of this service plan, there is no community water system and no community fire protection system available within the West Buttermilk Subdivision. In addition, the existing water wells and community systems available to Owl Creek lands do not generally provide the quantity, quality, or reliability of water supplies desired to meet the approved land uses or demands of the property. The proposed future � -in \ development of affordable housing on Pitkin County's Airport Ranch property also provides an opportunity to reduce the proliferation of community systems while sharing infrastructure, operation and maintenance costs, by extending the proposed District water system to the airport property. Since these services are not presently available through Pitkin County or another local government or utility, the District's proponents have determined that these services would be more efficiently and reliably provided by a special district. The District is proposed to be incorporated for the following multiple purposes and to provide the following municipal services: Water Supply including funding for the acquisition and/or development, design, construction, operation and maintenance of a new raw water supply, treatment, storage and potable water distribution system. Street improvements including development and maintenance of roads, streets and bridges, traffic medians, road right-of-ways, street lighting, parking lots and/or parking structures, curb and gutter, road drainage ways, culverts, pedestrian walkways, storm drainage, under drain systems, and snow plowing/removal. Street improvements include both in -district and out -of -district improvements that may be required by the County, its engineering standards or environmental conditions. Safety Protection including the funding of capital improvements associated with transportation, including street signs, transportation safety, bus shelters, traffic lights and Buttermilk Metropolitan District - Service Plan Page 8 • • controls. The above list of services is intended to provide a general description of the services, facilities and structures to be offered by the District. Services not specifically identified but which logically fall within the above described areas may be provided. Section B.4 Existing Governments and Services The City of Aspen and Pitkin County are the only general purpose governments currently providing municipal services in the immediate vicinity of the proposed service area. However, there are a number of special districts providing limited services including the Aspen Consolidated Sanitation District, the Aspen Fire Protection District, the Aspen Valley Hospital District, the Roaring Fork Transit Authority, the Pitkin County Library District, the Aspen School District and Colorado Mountain College, the Aspen Ambulance District and the Colorado River Water Conservation District. The City of Aspen currently provides potable water and irrigation water service to the base of the Buttermilk Ski Area and to the Eagle Pines Subdivision, both entities are adjacent to West Buttermilk Subdivision. The County provides public safety (police) and road maintenance on nearby County roadways but does not provide street or road services within West Buttermilk. Fire protection and suppression is provided by the Aspen Fire Protection District but only on a rural fire protection basis. There is no community water system and no fire hydrants within West Buttermilk nor portions of the District's proposed service area. The organizers of the District undertook and completed more than two years of discussions and negotiations with the City of Aspen Water Department in an attempt to reach agreement on the provision of potable water service and fire protection to the West Buttermilk area. In Buttermilk Metropolitan District - Service Plan Page 9 -u' V �ou the summer of 1999, the West Buttermilk Homeowners concluded that provision of service �, NX �\ by the City of Aspen was no longer a fiscally viable option and in the fall of 1999 the City �J u� concluded that extra -territorial water service was no longer possible due to a lack of capacity within the City's public water system. Similarly unsuccessful discussions took place between the City of Aspen and the East Owl Creek Ranch and Owl Creek combined homeowners associations. While it is not the intent of the proposed District to duplicate the services now being provided by any of the above governments or their respective agencies and/or departments, the services intended to be provided by the District are not presently available from any other existing private or government entity at a reasonable rate or within a reasonable time frame. Further, the proposed district would provide services within an area which may be serviced more efficiently and effectively by a new metropolitan district than by a private entity or homeowners' association. Therefore, in order to construct, operate and maintain public roadway and water system improvements and to provide for safety protection to the Buttermilk and Owl Creek area, it is clear that several advantages may accrue from the establishment of the proposed District. These advantages are explained in more detail in the following section. Section B.5 Need for Proposed Services The area to be included within the proposed metropolitan district is detailed on mapping included as Exhibit B and more fully discussed below. In order to provide a safe, reliable and reasonable level of services to support this residential subdivision, the organizers of the proposed metropolitan district have concluded that certain benefits would be realized by the establishment of the district when compared to services provided by a private entity or an homeowners' association. For. example, a special district Buttermilk Metropolitan District - Service Plan Page 10 provides a perpetual entity ensuring the long term viability of constructing, operating and maintaining the improvements pertaining to both the roads and public water system required within the Buttermilk Metropolitan District's service area. The improvements and services associated with them are not all available through a single existing government entity, nor has any government entity offered to provide these services at the desired level of service and at a reasonable cost. The establishment of a metropolitan district provides a mechanism for the collection of ad valorem taxes, fees and charges to fairly assess residential property owners for their pro rata share of capital, operating and maintenance costs within the new communities. Costs for insuring public facilities, or providing public services, may be reduced by utilizing the advantages of the Colorado Governmental Immunity Act. The establishment of a metropolitan district also provides for revenue sharing from specific ownership taxes as well as opportunities to apply for various governmental grants and subsidies for programs and projects that are not otherwise available to private entities. Section B.6 Compliance with County Master Plan. The overall plans for the organization of the District, the services to be provided and the area to be served have been developed to comply with and effect both the goals of Pitkin County's Master Plan and the Aspen Area Community Plan. Section B.7 Compliance with State Long -Range Water Quality Management Plan This Service Plan and the proposed services to be provided will comply with the current Area Wide Water Quality Management Plan (208 Plan) adopted by the Northwest Regional Council of Governments, which plan includes Pitkin County. No sanitary sewer or Buttermilk Metropolitan District - Service Plan Page 11 wastewater collection or treatment services are to be provided by the District. C. LOCATION AND CONFIGURATION OF DISTRICT. The proposed District boundaries and the overall service area are not contiguous since lands owned by Pitkin County and Aspen Skiing Company will not initially be included in the District. However since they are immediately adjacent to the District they may seek the provision of services from the District at a future date. A vicinity map is included as Exhibit "A" and the corporate boundaries of the Buttermilk Metropolitan District are depicted on mapping attached as Exhibit `B". A schedule of parcel numbers of properties to be included in the District has been included as Exhibit "C". The "service area" (the area legally permitted to be served by the District) will consist of the entire West Buttermilk Subdivision, Eagle Pines Subdivision, the West Buttermilk Pfister Tracts 1-5, as well as the Airport Ranch property, Aspen-Pitkin County Airport, Owl Creek Ranch, and East Owl Creek P.U.D. The District will have power to impose taxes and other fees or charges allowed by law within its legal boundaries and service area and will provide the municipal services described in this plan throughout its service area in accordance with all resolutions, rules and regulations of the District. Under Colorado law, the fee owner or owners of one hundred percent of any property proposed for inclusion may petition the Board of Directors of a District for inclusion, or annexation, of property into the District. Additionally, less than one hundred percent of the owners of an area may petition the District for an election on the question of including a specific area, or the board may adopt a Resolution calling for an election on such an inclusion of property. It is therefore possible that additional property may be included within the corporate boundaries of the District. The Board of Directors will have discretion to permit inclusions without amending this Service Plan. 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U) Cr h- w 0 0 0 p x H w w c) ZD z LL 0 • Buttermilk Metropolitan District - Water System 8 AUG 2000 Capital Budget Beginning Fund Balance $0 $123,833 $125,167 $135,276 Revenues 2001 2002 2003 2004 Property Taxes @ 10 mills 253,167 263,294 273,826 284,779 Ownership Taxes 15,190 15,798 16,430 17,087 Fees and Charges 38,340 39,874 41,469 43,127 Transfer from Operations 2,500,000 0 0 0 Interest Earnings 42,100 14,219 14,767 15,642 Total Revenues $2,848,798 $333,185 $346,491 $360,635 Expenditures 2001 2002 2003 2004 Operating Expenses $111,464 $104,851 $109,382 $114,214 Capital Outlay 2,400,000 Bond Issuance 100,000 Debt Service 113,500 227,000 227,000 227,000 Total Expenditures $2,724,964 $331,851 $336,382 $341,214 Excess Revenue $123,833 $125,167 $135,276 $154,696 Ending Fund Balance 12/31 $123,833 $125,167 $135,276 $154,696 Restricted Funds $0 $0 $0 $0 3% TABOR 3,344 3,146 3,281 3,426 Transfer to Capital Reserves 0 0 0 0 Unrestricted Funds $120,489 $122,022 $131,994 $151,270 Notes: Capital outlays in 2001 represent construction by District h:0185sc&o.ws Buttermilk Metropolitan District - Water System 8 AUG 2000 Operational Budget Proposed Proposed Proposed Proposed Revenue 2001 2002 2003 2004 Balance Forward $0 $127,177 $131,657 $145,047 Property Tax @ 10 mills 253,167 263,294 273,826 284,779 Specific Ownership Tax 15,190 15,798 16,430 17,087 Bond Proceeds 2,500,000 0 0 0 Interest Earnings 42,100 14,219 14,767 15,642 Fees and Charges 38,340 39,874 41,469 43,127 Total Revenues $2,848,798 $460,362 $478,147 $507,685 Expenses 2001 2002 2003 2004 Management $24,000 $25,200 $26,460 $27,783 Engineering 12,000 1,500 1,575 1,654 Legal 6,000 2,500 2,625 2,756 Accounting & Billing 17,500 18,375 19,294 20,258 Audit 0 2,500 2,500 2,575 Insurance 4,800 5,280 5,808 6,389 County Treasurer Fees 12,658 13,955 14,513 15,093 Water System O&M 34,506 35,541 36,607 37,706 Total Expenses $111,464 $104,851 $109,382 $114,214 Excess/(shortfall) 2,737,333 355,511 368,765 393,471 Transfer to Capital Budget 2,500,000 0 0 0 Transfer to Debt Service 113,500 227,000 227,000 227,000 Transfer to Capital Reserves 0 0 0 0 30% Tabor Emergency Reserve 3,344 3,146 3,281 3,426 Balance to Next Period Operations $127,177 $131,657 $145,047 $169,898 Notes: A. Present Assessed Value is $25,316,720 B. Assumed debt is $2,500,000 @ 6.5%, 20 years C. Fees = 71 lots at $45/mo for potable water. D. Capital reserves include water storage, wells, treatment & delivery systems. E. Tabor emergency reserve is available for next period use. hAwp61 Tc\0185c&o.ws • 0 LO N O (D O d' cr) 1- N (D O O CD r d' 1- O C) p CV) (D CY) I- 00 p V'T 0)N N LO N 7 C7 a)V 00 N t` CY) 0 N �LC) r- co N� D 1\ NN m N M C) 69 07 0000 to N N N Q (D (D (D (D 00 Eft to CO. d N N I- O r- O c0 N Cl) O O M Lf) LO co N Ln p Ln CD N p CO M O O r 00 O N V V O N V TT Lr) LO 1- 00 00 CM 'll O N C)r- N � 00> 0) N N N N CY) T CO 69 44 1- r- 1` 69 ul ER C7 N O m O N 0) CM N CA cc CA V V V O (D p LO O (D V LO p 0)a) LO LO CY) N N O (D 00 0 1, N 1` r- 0) cr) (D C7 O O C') CY) (D 1- 1- N 00 N (fl N r 1- O O (\ co r N (1) 69 N LC L(5 L(i 6L? 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LnLn0OMO to 0 N T V 'T (D 0 OT 00(000 N T (0) Ln N Ln Ln T r T Cr) 64 61) NLn0Nl-v� 0 M (D N N Cf) 0 O t- (D I,- r N C.D 00 Ln O O T r MNO0000 M 0 (D N 0 0) 0 0 'IT rt O O N 0 00 Ln 0) 00 04 ER fi? T� o O N r N 0 (D O 0 'ITa) 0 O T N (D (71 N LO Lnr`N N EA 69 (DNOOLnCl) 0 (D a) O O T r- 0 00t-O0 V O N c r` Ln Ln Ln CS T O 000 613. T O O O O O O C•M m t-- r- 0 0 O N N Lo CO cn 0 0 ER r V V to Ef) N O O M 00 O 00 M co V co N 00 00 63 r M Cl) (D O O Ln O 0) CO Ln U') U') rl- 0 t- N N 1�31 oo N T T Eft rFl3 M 6s NOOr co co c M � � Ln 0 LD O Cn � r N N 0 0 co 0 M M � co 00 CO co � V O N O O 64 r 69 00(D � CY)m Ln M 00 O 0) N O N Ln Ln V 00 N rt V (4 r T Q1 cfl (D O O Ln N N (D T 00 T N M Ln Vt l7 O O O Ln Ln V 00 N 0 0 EFT T - M O O M co N(D000 a)0) O T O O 0) m (` O Ln M O 0) v v co to (D (D H? oo M fA ai U 0 i U C C(D!) f0 LU cOi C 0) a)O 7 x- (1) �LL j o co CL) LV Cjj iT R O •C 000H Ww N CD V ) M 00 0) ^ T 00 Cl) Cl) co M M Ln 1 M co V N N LO cd O 7m _0 Ln Ln co • 0 Buttermilk Metropolitan District - Roads Capital Budget 8 AUG 2000 Beginning Fund Balance $0 $69,990 $105,280 $145,705 Revenues 2001 2002 2003 2004 Property Taxes @ 8 mills 129,866 135,061 140,463 146,082 Ownership Taxes 7,792 8,104 8,428 8,765 Fees and Charges 5,000 5,200 5,408 5,624 Transfer from Operations 885,000 0 0 0 Interest Earnings 15,415 7,511 8,989 10,657 Total Revenues $1,043,073 $155,875 $163,288 $171,127 Expenditures 2001 2002 2003 2004 Operating Expenses $47,923 $40,266 $42,544 $44,487 Capital Outlay 850,000 Bond Issuance 35,000 Debt Service 40,160 80,319 80,319 80,319 Total Expenditures $973,083 $120,585 $122,863 $124,806 Excess Revenue $69,990 $105,280 $145,705 $192,026 Ending Fund Balance 12/31 $69,990 $105,280 $145,705 $192,026 Restricted Funds 3% TABOR Transfer to Capital Reserves Unrestricted Funds $0 $0 $0 $0 1,438 1,208 1,276 1,335 0 0 0 0 $68,552 $104,072 $144,429 $190,692 Notes: Capital outlays in 2001 represent construction by District h Awp61 Uc\0185sc&o. rd 0 0 Buttermilk Metropolitan District - Roads 8 AUG 2000 Operational Budget Proposed Proposed Proposed Proposed Revenue 2001 2002 2003 2004 Balance Forward $0 $71,428 $107,926 $149,627 Property Tax @ 8 mills 129,866 135,061 140,463 146,082 Specific Ownership Tax 7,792 8,104 8,428 8,765 Bond Proceeds 885,000 0 0 0 Interest Earnings 15,415 7,511 8,989 10,657 Fees and Charges 5,000 5,200 5,408 5,624 Total Revenues $1,043,073 $227,303 $271,213 $322,758 Expenses 2001 2002 2003 2004 Management $10,000 $10,500 $11,025 $11,576 Engineering 10,000 1,500 1,575 1,654 Legal 6,000 2,500 2,625 2,756 Accounting & Billing 6,000 6,300 6,615 6,946 Audit 0 2,000 2,500 2,575 Insurance 1,680 1,848 2,033 2,236 County Treasurer Fees 6,493 7,158 7,445 7,742 Road Maintenance 7,000 7,210 7,426 7,649 Drainage Maintenance 500 1,000 1,050 1,103 Traffic Maintenance 250 250 250 250 Total Expenses $47,923 $40,266 $42,544 $44,487 Excess/(shortfall) 995,150 187,037 228,670 278,271 Transfer to Capital Budget 885,000 0 0 0 Transfer to Debt Service 40,160 80,319 80,319 80,319 Transfer to Capital Reserves 0 0 0 0 3% Tabor Emergency Reserve 1,438 1,208 1,276 1,335 Balance to Next Period Operations $69,990 $106,718 $148,351 $197,952 Notes: A. Present Assessed Value is $16,233,260 B. Assumed debt is $855,000 @ 6.5%, 20 years C. Capital reserves include roads, safety and drainage systems. D. Fees includes costs to Aspen Skiing Company for annual road O&M. Exhibit D Cash Flow Forecast and Pro Forma Budget Buttermilk Metropolitan District - Service Plan Page 31 Buttermilk Metro District Eagle Pines East Owl Creek 2735-10-101003 2643-343-201003 2735-10-101004 2735-03-201701 2735-10-101005 2735-03-201702 2735-10-101006 2735-04-101003 2735-10-200007 2735-04-101004 2735-10-202001 2735-04-101005 2735-10-202002 2735-04-101701 2735-10-202007 2735-04-101702 2735-10-202008 2735-04-401001 2735-10-202009 2735-04-401002 2735-10-202010 2735-04-401003 2735-04-401004 West Buttermilk 2735-04-401005 2735-04-401006 2735-03-200008 2735-04-401007 2735-03-200009 2735-04-401008 2735-03-200010 2735-04-401009 2735-03-200011 2735-04-401010 2735-03-200012 2735-04-401011 2735-03-200013 2735-04-401012 2735-03-200014 2735-04-401013 2735-03-200015 2735-04-401014 2735-03-200016 2735-04-401715 2735-03-200017 2735-03-200018 Owl Creek Ranch 2735-03-200019 2735-03-200020 2643-343-301001 2735-03-200021 2643-343-301711 2735-03-300022 2735-04-102001 2735-03-300023 2735-04-202002 2735-03-300024 2735-05-101009 2735-03-300025 2735-05-101010 2735-03-300028 ????-32-401007 2735-03-300029 ????-32-401008 2735-03-300030 ????-33-301005 2735-03-300033 ????-33-301006 2735-03-300034 ????-33-401002 2735-03-300044 ????-33-401003 2735-03-300046 ????-33-401004 2735-03-302001 2735-03-302002 West Buttermilk Pfister Tracts 2735-03-400035 2735-03-400036 2735-04-101001 2735-03-400037 2735-04-101002 2735-03-400038 2735-10-201001 2735-03-400039 2735-10-201002 2735-10-201003 �y Exhibit C Shedule of Properties to be Included in District Buttermilk Metropolitan District - Service Plan Page 30 • 0 Exhibit B Map Illustrating District Boundaries Buttermilk Metropolitan District - Service Plan Page 29 PUG-16-2000 10:08 FROM: TO:83-9256 847 P.002/002 iw I � Y � Nf / N � (1 Buttermilk Metropolitan District F4 Vicinity Map August 2000 Heach Resource Management, LLC Aspen, Colorado SCALE: Not 10 Scale Near Aspen, Colorado Exhibit A Vicinity Map Buttermilk Metropolitan District - Service Plan Page 28 0 i within its boundaries; (d) The area within the District will have, the financial ability to discharge the proposed initial debt on a reasonable basis; (e) Adequate service is not, and will not be, available to the area through the County or other existing municipal or quasi -municipal corporations, including existing special Districts (other than the District), within a reasonable time and on a comparable basis; (f) The facility and service standards of the District are compatible with the facility and service standards of the County and each municipality which is an interested party under Section 32-1-204(1), Colorado Revised Statutes; (g) The Service Plan is in substantial compliance with any applicable comprehensive master plans adopted by the County; (h) The Service Plan is in compliance with any duly adopted and applicable long-range water quality management plan and drainage plan for the area; and (i) The Service Plan will be in the best interests of the area served by the District. Buttermilk Metropolitan District - Service Plan Page 27 J. DISCLOSURE The current petitioners and the District will take steps to insure the owners of any property for sale located within the District provide adequate written notice at the time of closing to initial purchasers of land and property in the District regarding the existence of any additional taxes, charges, or assessments which may be imposed in connection with the District. The District shall also record a statement against the property within the District, at such time as the property is legally included therein, which statement includes notice of the existence of the District, average expected tax levy, maximum expected tax levy, and maximum allowed tax levy. K. INTERGOVERNMENTAL AGREEMENTS The District may participate in joint financing agreements with other public or private entities in pursuit of the goals and intentions contained in this Service Plan. The District may also elect to enter into intergovernmental agreements for the provision of services offered by the District. L. STATUTORY REQUIREMENTS It is submitted that this Service Plan for the West Buttermilk Metropolitan District meets the requirements of the Special District Control Act, the applicable requirements of the Colorado Constitution, and those of Pitkin County. It is further submitted that: (a) There is sufficient existing and projected need for organized service in the area to be serviced by the District; (b) The existing service in the area to be served by the District is inadequate for projected needs; (c) The District is capable of providing economical and sufficient service to the area Buttermilk Metropolitan District - Service Plan Page 26 G. DIRECTORS The initial Board of Directors for the District will be made up of five District constituents. Three will be elected for four year terms, and two will be elected for two year terms which at their conclusion will convert to four year terms. By statute, staggered -term elections for District board members are held every two years during the month of May. The initial Board of Directors for the District will determine and approve the initial by-laws, rules and regulations and standards and specifications of the District, enter into such intergovernmental agreements as are consistent with this Service Plan, establish primary district policies and will be responsible for the effective carrying out of all rules, regulations and policies. The District will thereafter operate according the laws of the State of Colorado as political subdivisions of the State. H. MODIFICATION OF SERVICE PLAN The District shall obtain the prior approval of the County before making any material modifications to this service plan as noted herein. Material modifications shall include modifications of a basic or essential nature including any additions to the types of services initially provided by the District. The examples above are only examples and are not an exclusive list of all actions which may be identified as a material modification. I. RESOLUTION OF APPROVAL The District agrees to incorporate the Pitkin County Commission's Resolution of Approval, including any conditions on such approval into the Service Plan presented to the appropriate District Court. Buttermilk Metropolitan District - Service Plan Page 25 • • 3. Water distribution line consisting of approximately 35,400 ft of 12 inch ductile iron pipe, and 4400 lineal feet of 8 inch ductile iron pipe. 4. A booster pump station. 5. Five pressure reducing valves (PRVs) and vaults. 6. Water filtration and treatment works. 7. All improvements and facilities required to bring water to the District's end users. 8. Removal, rehabilitation and resurfacing of approximately 2.7 miles of existing roadways, including drainage and storm control structures, to provide access to residences within the West Buttermilk, Eagle Pines and Pfister Tracts subdivisions. 9. Develop a legal water supply plan and acquisition of water resources for such plan for District operations. Section F.7 Compliance with County Standards and Specifications All proposed improvements to the West Buttermilk roadways will be designed to Pitkin County Standards. All water system improvements will be constructed in strict accordance with American Water Works Association Standards and Specifications for public water treatment and distribution systems. It is presently anticipated however, that the District will adopt its own Rules and Regulations and Standards and Specifications for all construction of municipal and/or public facilities and structures to be constructed within the District and these Rules, Regulations, Standards and Specifications are anticipated to be at least as comprehensive as those of the County and AWWA. Buttermilk Metropolitan District - Service Plan Page 24 Required funding of a perpetual 3% emergency fund varies only as a result of the total budget figure and cost variances for the 5% Pitkin County Treasurer's collection fee are a result of changes in tax receipts. Notes to the pro forma budget are included in the Cash Flow Forecast and revenue limitations under both TABOR and the 5.5% revenue growth caps have been considered within the twenty year projections. F. PRELIMINARY ENGINEERING PLAN The Buttermilk Metropolitan District intends to construct a new community water supply and distribution system for current and future residents of the District's service area. The system will replace existing individual wells in West Buttermilk, which have diminishing capacities and declining water quality and the District will assume management and control of the central water systems and augment existing supplies to both Owl Creek Ranch and East Owl Creek P.U.D. The new community system will provide potable water service and fire protection, consolidate control and treatment systems, provide a more reliable water supply with storage to meet peak demands and fire protection requirements for both residential and open space areas throughout the District. Following completion of the water system installation, West Buttermilk Road will be completely reconstructed to provide better drainage, a more competent and durable driving surface, increased shoulder widths, and ability to handle heavier traffic loads without rapid deterioration. The following provides a general overview of the proposed construction of these facilities and roadways: 1. Construction of three to four potable water wells into the Roaring Fork River Alluvium, estimated depth is 200 feet each. 2. Above ground 500,000 gallon steel potable water storage tank. Buttermilk Metropolitan District - Service Plan Page 23 Section E.6 Proposed Initial Budget If so requested by Pitkin County, an annual report as described in C.R.S. § 32-1-207 (3) (c) will be filed with the County in the form prescribed by the County. The annual mill levy changes will be certified by the District and submitted no later than December 15`h of each year. The Proposed Initial Budget, as set forth in the Financial Plan, indicates that individual contributions to infrastructure within the District will be required through the year 2001 and. may be required into 2002. Individual contributions and/or loans to the District for operations and maintenance of the District and its facilities will be required until the District has adequate revenues to cover these expenditures, which is anticipated to occur in 2001. Beginning in 2002, the revenue generated by the assessed valuations of the District, will be commensurate to cover all expenditures proposed for the operations, maintenance and administration of the District. The first year of operation will require expenditures totaling $159,387 for operations and maintenance. During the first two years of operation, the District expects to fund approximately $3,250,000 of District related infrastructure costs and the combined debt service of the District is estimated to be $307,319 per year. As the District's facilities are constructed and made operational, and as the population of the District increases, the overall expenditures for operations and maintenance will increase. Such increases in O&M costs have been forecast and contained within the Cash Flow Forecast. In the first stages of construction by the District, administrative expenses will include costs associated with inspecting and managing infrastructure construction, including legal, project administration and engineering. In addition, costs associated with District accounting, record keeping, audits and Pitkin County tax collection fees are also included. A review of the Cash Flow Forecast indicates that by year 2004, costs of operation, maintenance and debt service become relatively stable and are affected primarily by inflationary increases. Buttermilk Metropolitan District - Service Plan Page 22 0 • bridge repairs, sign replacement, traffic control, street sweeping, and required ancillary maintenance services. An operational budget for the first four years of operation has been included in the Financial Plan. An abbreviated operational and capital budget for thirty years has been included in the Cash Flow Forecast. All costs for operations and maintenance have been based on industry norms or where possible, on actual estimates from independent contractors and persons knowledgeable with typical metropolitan district operation and maintenance costs. Included within the O&M budget is a 3% allowance for emergency funding as required by the TABOR Amendment as well as a sinking fund for the eventual acquisition of maintenance oriented capital equipment. Initially, there are no accommodations for District employees although costs allocated for contract services may be converted to District service costs if such a conversion becomes warranted. Section E.5 Repayment As detailed in the attached Cash Flow Forecast, repayment of all authorized short term operational loans and long term debt shall be accomplished through either fee revenues or tax receipts. It is currently proposed that the District will borrow initial operating funds from individuals within the district or a recognized lender and these funds will be repaid with interest as District revenues or repayment funds become available. Following the initial voter approved issuance of long term debt, all future decisions on the issuance of additional debt will be made by the District's Board of Directors and electorate. Buttermilk Metropolitan District - Service Plan Page 21 Section EA Proposed Operations and Maintenance The District's initial mill levy will be assessed to acquire or construct a reliable community potable water system and to rebuild West Buttermilk Road. In addition, once the road and water system have been constructed, a portion of the district's mill levy will be used to operate, maintain, and administer these facilities and the business of the District. The district may coincidentally or subsequently determine that it is in the best interest of its service area's property owners to extend services but it is presently intended that new service extensions will be the responsibility of the property requesting new service extensions. Overall operations and maintenance services will initially be contracted to private local businesses to take advantage of existing expertise and to limit both operational and capital (equipment) cost requirements. The District may also elect to enter into an Intergovernmental Agreement with another Special District for the provision of services related to the operations and maintenance of its water system, roads, safety, drainage, et cetera, since it is anticipated that certain efficiencies could be recognized through the maintenance of facilities and the provision of services in the same immediate area. In the event the District purchases an existing raw water system, to be converted for use by the District, the District may enter into an agreement with the current system owner to continue service to the existing user(s) of the system, even if these user(s) are not within the corporate boundaries of the District. Annual operations and maintenance requirements include administrative services such as management and accounting, required special district audits, reporting, record keeping and compliance, legal counsel, engineering, and constituent services. The costs associated with the provision of the services has been included within the initial budget projections. Additionally, annual maintenance requirements are anticipated to include snow plowing, sanding and snow removal from roadways, landscape maintenance, mowing, irrigation, weed and dust control of common areas, maintenance of traffic medians, drainage ways, road and Buttermilk Metropolitan District - Service Plan Page 20 received by the District throughout the year. It is projected that the District's portion of specific ownership taxes received in 2001 will approximate $23,000. A complete schedule of all proposed tax receipts by the District is included in the Cash Flow Forecast. The District will also be entitled to establish certain fees and charges for services provided and may elect to equitably distribute the actual costs of providing those services to the end user. The District's Board of Directors will determine which services will be subject to fees or charges and the level of fees and charges to be assessed from time to time. The District's Board will also determine the percentage of income to be derived from each type of revenue. Section E.3 Proposed Capital Expenditures & Debt The District will issue debt for the purpose of acquiring or designing, and constructing capital improvements deemed necessary for the provision of a potable water supply for residents and landowners within the District and its service area and new roadways in the West Buttermilk Subdivision, including but not limited to West Buttermilk Road. The District anticipates providing for the maintenance of residential roadways, storm drainage systems, street lighting, traffic signals, signs, traffic medians and other public safety improvements. The above list is meant to be indicative of the types of improvements to be included in the District and should not be considered to be either all inclusive, or a commitment to build. As is customary, the Board of Directors for the District will be responsible for determining the type and timing of all improvements and the authorization of any future District debt. Buttermilk Metropolitan District - Service Plan Page 19 • 0 and seasonal residency and it is estimated that full build -out populations will be reached by approximately 2010. Section E.2 Property Tax Collections and Other Revenues Property Tax Collections The Pitkin County Treasurer's Office is responsible for the collection of all ad valorem taxes levied within the County. All property listed and valued as of January 1 each year will be included in the next year's tax roll. All taxes required to be paid are due in full by June 151h and the County disburses 95% of the taxes collected in one month by the 10`h day of the following month. Although taxes are received by the County on a continuous basis, the primary receipt dates are February 15, April 30 and June 15. Therefore, the bulk of tax receipts to the District will be received in March, May and July. Pitkin County currently retains 5% of all taxes collected on behalf of most special districts. The Cash Flow Forecast indicates that the property tax assessments will commence in 2001 with initial ad valorem tax receipts of $383,033 being received in 2001. Actual property values are projected to increase at historic levels but as the actual values go up, the assessed values for some of the vacant property may actually decrease because residential property is assessed at a lower rate than vacant land (9.74% v. 29%). Nevertheless, increases in assessed value for total residential property will create a positive cash flow in taxes generated and these increases are projected to offset the cost of infrastructure and the demand for services within the district. Other Revenues In addition to ad valorem taxes, the District will be entitled to a pro rata share of specific ownership taxes collected for vehicles registered within Pitkin County. The disbursements for these taxes are made on the same basis as for property taxes and are Buttermilk Metropolitan District - Service Plan Page 18 A mill is one -tenth of one cent, or one dollar in tax for every $1,000 of assessed value. Since Colorado's Gallagher Amendment prohibits residential property owners from paying more than 45% of all property taxes, residential property tax rates are lower than tax rates for either commercial property or vacant land. This tax rate has been in steady decline from 30% in 1983 until 1998 when it stabilized for the first two consecutive assessment periods at 9.74%. Therefore, the current residential assessment rate is 9.74% of the actual value and the vacant land assessment rate is 29%. A $300,000 residential property within the proposed district would be taxed on an assessed value of $29,220 and would be subject to total annual property taxes for water service in East Owl Creek and Owl Creek ranch $951.75 of which $292.20 would be generated by the District's mill levy. Property taxes for a similar residence in Eagle Pines would be subject to a annual taxes for roads of $233.76. An estimate of taxes due from new assessments is detailed below. The list is based on an annual assessment per $100,000 of market value. By way of example, a $500,000 home in West Buttermilk would be subject to an increase in taxes of $876.60 per year while a $1,000,000 home in Eagle Pines would be subject to additional property taxes of $779.20 annually. West Buttermilk Subdivision $175.32 West Buttermilk Pfister Tracts 175.32 East Owl Creek P.U.D. 97.40 Owl Creek Ranch 97.40 Eagle Pines Subdivision 77.92 Population Total population estimates within the District's initial boundaries at full build -out have been projected at 425 persons. These population projections include full time, part-time Buttermilk Metropolitan District - Service Plan Page 17 • TABLE OF EXISTING MILL LEVIES Buttermilk Metropolitan District Area Taxing Entity Present Mill Levy Pitkin County (all sources) 8.001 Aspen School District 10.233 Aspen Fire Protection District 1.302 Aspen Consolidated Sanitation 0.279 Colorado Mountain College 3.539 Colorado River Water Conservation 0.309 Aspen Valley Hospital District 1.500 Aspen Valley Ambulance District 0.274 Total Existing Mill Levies 25.437 A similar taxing district overlay exists for the other subdivisions proposed to be included within the District and their total existing mill levies are as follows: East Owl Creek P.U.D. 22.572 Owl Creek Ranch P.U.D. 22.572 Eagle Pines 22.338 W. Buttermilk Pfister Tracts 1-5 21.077 to 22.338' As a result of the existing taxing entities, the total mill levy requirement after the establishment of the District is proposed to be 43.437 mills within the West Buttermilk Subdivision, 40.338 mills within the Pfister Tracts, 32.592 mills within East Owl Creek, 32.572 mills within Owl Creek Ranch, and 30.338 mills within Eagle Pines. These proposed mill levy rates compare favorably with numerous existing taxing districts in Pitkin County.2 The attached Financial Plan indicates the mill levy could be reduced after the tenth year without jeopardy to the financial strength of the District. In addition, the inclusion of additional properties into the district or the receipt of additional revenues from the extension of service to lands within the service area appear to increase the fiscal strength of the District. There are two separate taxing districts within West Buttermilk Pfister Tracts. For purposes of our analyses we have used the higher mill rates to determine total tax rates. Tax districts within Pitkin County currently range between 20.847 mills and 82.572 mills. Buttermilk Metropolitan District - Service Plan Page 16 The District will be entitled to a share of specific ownership taxes collected by the County Treasurer's Office and other fees, rates and/or service charges assessed within the District. These additional revenues can be used by the Districts to offset the required expenditures. Fees and charges may be set to appropriately assess users for specific services purchased from or provided by the District. These fees and charges may be used to limit the amount of ad valorem taxes needed to fund district expenditures and to compensate for the provision of services to non-taxable entities. Section E.1 Assessed Valuation and Population Assessed Valuation The assessed valuation of the District is assumed to increase with the development of the remaining vacant lots and the typical appreciation of residential properties in this area. The combined assessed valuations are projected to increase from $31,826,260 as of January 1, 2000 to approximately $33,099,310 as of January 2001. Property tax revenues are anticipated to increase in direct relationship to increases in assessed value but with full recognition of the requirements and limits of the TABOR Amendment and Colorado property tax laws. As mentioned previously, there are a number of special districts and/or local governments providing limited services to the proposed District. The existing mill levies of each of these taxing entities is described within the following tables: Buttermilk Metropolitan District - Service Plan Page 15 authorization of the constituents and revenue bonds by board approval. The District's Board of Directors will from time to time, determine what expenditures should be made by the District and what options for debt issuance and other revenues should be exercised. It is anticipated that separate mill levies of 8.000 mills and 10.000 mills will be established by the District, to fund annual operations and maintenance and to repay any indebtedness incurred by the District for construction of the road and water systems. The mill levy of 8.000 mills will be established to cover an estimated $885,000 in debt for the construction, operation and maintenance of the new roads. The mill levy of 10.000 mills will be established to cover an estimated $2,500,000 in debt for the construction of a new water system and for annual operation and maintenance of the system. Consequently, the West Buttermilk Subdivision and the Pfister Tracts will see an increase in their total mill levy of 18.000 mills. East Owl Creek and Owl Creek Ranch will see an increase in total mill levy of 10.000 mills and Eagle Pines will see an increase of 8.000 mills. Once all debt has been retired, the overall mill levy for each area within the District could be reduced to that amount which supports operations, maintenance and reserves. A comprehensive Cash Flow Forecast including operations, maintenance and debt service requirements for both the water system and the road system has been included as Exhibit "D". While the debt will likely be combined, the repayment responsibility for the debt will not. As described above, Eagle Pines will participate in the funding of road improvements and annual operations and maintenance only, Eagle Pines homeowners will not be responsible for any portion of the water system costs. The financial analyses completed as a part of this service plan demonstrates the District's ability to finance construction and to operate and maintain the District's facilities and infrastructure in a fiscally responsible manner. The cash flow analyses also confirms the District's ability to set funds aside for the eventual replacement of facilities within the proposed mill levy rates. Buttermilk Metropolitan District - Service Plan Page 14 D. LONG-TERM DISTRICT PLAN. The District will issue long term debt for the purpose of acquiring or designing and constructing the water and roadway infra -structure deemed necessary within the District's boundaries or as extended into its service area. Upon authorization by district voters, the District's elected Board of Directors will make final decisions regarding the issuance of debt, timing and amounts. The District will collect ad valorem taxes, fees and charges to fairly assess residential property owners for their pro rata share of capital, operating and maintenance costs for facility construction and operation, and provision of district services. In the future, the electorate of the District will have the opportunity to consider whether the consolidation of services with Pitkin County or, other service agency is practical, feasible and desirable, and if such decision is affirmative, the dissolution of the District in accordance with state law could be effected. Further, since 100% of the District will lie within Pitkin County , the County may determine in the future that it is in the best interest of the County to dissolve the District and all services provided by the District would be provided by the County. E. GENERAL FINANCIAL PLAN A schedule of appreciating property assessments has been developed and compared to proposed debt requirements and the estimated annual costs of operation and maintenance. The results of this comparative analysis indicate an ability to meet all District expenditures as described in more detail below. The District will have the power to assess ad valorem taxes, to receive specific ownership taxes, to levy rates, fees and charges and to issue general obligation bonds with the Buttermilk Metropolitan District - Service Plan Page 13 i V • Buttermilk Metro Water District Proposal: Create a Special District called the "Buttermilk Metropolitan District" for potable water purposes and fire protection and reconstruction of West Buttermilk Road. Funding: The Special District will obtain funding for the acquisition and construction of public improvements via collection of taxes and revenues to ensure repayment of debt. Service Area: Included within the proposed initial service area are lands within (See Exhibit B) 1) West Buttermilk Subdivision 2) Eagle Pines Subdivision 3) West Buttermilk Pfister tracks 1-5 4) Airport Ranch Property 5) Aspen Pitkin County Airport 6) Owl Creek Ranch and 7) East Owl Creek PUD -? S) All lands immediately adjacent to the proposed Service District (Pitkin County lands and Aspen Skiing Company) ➢ It is anticipated that property owners within West Buttermilk Subdivision, the East Owl Creek Subdivision, Owl Creek Ranch, and the Pfister Tracts will pay property taxes for the design, construction, and installation of a new potable water system to ,serve an estimated 71 lots; ➢ The District anticipates the provision of its services to lands directly adjacent to the District including portions of Pitkin County; ➢ County Requirements for approving the creation of a service district includes: o There is sufficient existing and projected need for organized service in the area t be serve' ; o That existing service in the area to be served by the proposed district is inadequate for present and projected needs; o The proposed district is capable of providing economical and sufficient service within its proposed boundary; and o The District is capable or will have the financial ability to provide the proposed services on a reasonable basis. ➢ City of Aspen currently provides drinking and irrigation water to the base of the Buttermilk Ski area and to the Eagle Pines Subdivision. Both entities are adjacent to West Buttermilk Subdivision; ➢ In the summer of 1999, the West Buttermilk Homeowners concluded that provision of service by the City of Aspen was no longer a fiscally viable option and in the fall of 1999 the City concluded that extra- terrestrial water service was no longer possible due to the lack of capacity within the City's water system; ➢ Similar discussions occurred between the City and East Owl Creek Ranch and Owl Creek combined homeowners associations. ASPEN/PITKIN COMMUNITY DEVELOPMENT DEPARTMENT 130 South Galena Street Aspen, Colorado 81611 Phone (970) 920-5090 FAX (970) 920-5439 MEMORANDUM TO: Attorney County Eng. Aspen Planning Aspen Eng. FROM: Suzanne Wolff, Community Development RE: Buttermilk Metro District Service Plan 2735- P109-00 DATE: August 22, 2000 Attached for your review and comments are materials for an application by Buttermilk Metro District. This application will be reviewed by the Pitkin County Planning & Zoning Commission on September 5, 2000 Please return your comments to me September 1, 2000. Sorry for the short referral period. We just got this. PLEASE RETURN APPLICATION MATERIALS TO COMMUNITY DEVELOPMENT IF YOU HAVE NO FURTHER NEED OF THEM. Thank you.