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HomeMy WebLinkAboutagenda.council.regular.20070108 CITY COUNCIL AGENDA January 8, 2007 5:00 P.M. 4 pm Executive Session - Personnel 5 pm Aspen Public Facilities Annual Meeting COUNCIL MEETING I. Call to Order II. Roll Call III. Moment of Silence IVI. Scheduled Public Appearances a) Proclamation - Sport Obermeyer 60th Anniversary V. Citizens Comments & Petitions (Time for any citizen to address Council on issues NOT on the agenda. Please limit your comments to 3 minutes) VI. Special Orders of the Day a) Mayor's and Councilmembers' Comments b) City Manager's Comments c) Board Reports VII. Consent Calendar (These matters may be adopted together by a single motion) a) Minutes - November 28; December 11, 2006 b) Resolution #1,2007 - Posting of Public Meetings c) Resolution #2,2007 - Tourism Promotion Fund Agreement with ACRA VIII. First Reading of Ordinances IX. Public Hearings a) Ordinance #40, 2006 - 434 E Cooper (Bidwell Building) Historic Designation continue to 2/12 b) Ordinance #41,2006 - 625 E. Main Street (Stage III) continue to 1/22 c) Ordinance #50, 2006 - Water Service Agreement - Gardner Bishop X. Action Items XI. Executive Session XII. Adjournment Next Regular Meeting Januarv 22. 2007 COUNCIL SCHEDULES A 15 MINUTE DINNER BREAK APPROXIMATELY 7 P.M. MEMORANDUM To: Mayor and City Council FROM: Kathryn Koch, City Clerk DATE: January 2,2007 RE: Annual Meeting of the Aspen Public Facilities Authority SUMMARY: The articles of incorporation of the Aspen Public Facilities Authority state that the annual meeting shall be held in the second Monday in January. BACKGROUND: The Aspen Public Facilities Authority is a "non-profit corporation and an instrumentality of the City of Aspen for certain limited purposes". The Board of Directors of the Authority is the members of the City Council, the City Finance Director and the City Clerk. The officers at the last annual meeting were: President Vice President Secretary Ass!. Secretary Treasurer Helen Klanderud Torre Kathryn Koch Jack Johnson Paul Menter The By-Laws state the President shall be the Mayor of the City of Aspen. The Vice President and Assistant Secretary shall be members ofthe City Council and shall hold office so long as he or she remains a member ofthe City Council of the City of Aspen. The Treasurer shall be the Finance Director of the City of Aspen. The by-laws also state ifthe office of vice president or assistant secretary become vacant, the corporation shall elect a successor from its membership at the next regular meeting, and such election shall be for the unexpired term of said office. The Bylaws of the Authority require that an annual meeting be held on the second Monday of January at 5:00 p.m. at the regular meeting place ofthe corporation. The Bylaws state the following order of business for regular meetings: 1. Roll call 2. Reading and approval of the minutes of the previous meeting (minutes of January 9, 2006 attached) 3. Bill and Communications 4. Report of President 5. Unfinished business 6. New business 8. Adjournment The Authority was formed to assist in financing the construction ofthe Parking Facility. The Authority initially leased the ground for the parking facility from the City, owned the facility and leased the ground and facility back to the City. All ofthe Authority's interest in the Parking Facility leases and subleases related to the Parking Facility has been assigned to a trustee. In 1995 the Authority passed two resolutions; one allowed the refinancing ofthe parking garage bonds, and one entered into a similar lease arrangement for Cozy Point. The Ground lease requires that the Authority "maintain its corporation existence, .. will not dissolve or otherwise dispose of all or substantially all of its assets and will not consolidate with or merge into another corporation..." during the term of the ground lease. Rel!:ular Meetinl!: Aspen City Council Januarv 9. 2006 ASPEN PUBLIC FACILITIES MEETING President Helen Klanderud called the meeting to order at 5:05 p.m. with members Torre, J. E. DeVilbiss, Jack Johnson, Paul Menter and Kathryn Koch present. President Klanderud said this is a non-profit corporation of the city used for limited purposes. Torre approved the minutes of January 10,2005; seconded by Menter. All in favor, motion carried. President Klanderud noted since City Council has changed members, the Vice President and assistant secretary need to be re-elected. DeVilbiss moved to nominate Torre as vice-president; seconded by Johnson. All in favor, motion carried. President Klanderud said the facility was formed to assist in financing construction of the parking facility, leased the ground for the parking facility from the city, owned the facility and leased this back to the city. In 1995 the Authority passed 2 resolutions; one to allow refinancing of the parking garage bonds and one to enter into a lease arrangement for Cozy Point. Menter said Council may decide to build a facility in the future and to finance it with certificates of participation and they would need the public facility. DeVilbiss moved to nominate Jack Johnson as assistant secretary; seconded by Menter. All in favor, motion carried. There being no further business DeVilbiss moved to adjourn the annual meeting of the public facility authority at 5:10 p.m.; seconded by Torre. All in favor, motion carried. 2 VII b MEMORANDUM TO: Mayor and City Council FROM: Kathryn Koch, City Clerk DATE: January 2,2007 RE: Meetings Resolution Designating the Public Place for the Posting of Notices of Public Pursuant to 1991 legislative amendments to the Colorado Open Meeting Law as Section 24-6-402(2)( c), City Council is to annually designate at its first meeting for each calendar year a public place for the posting of notices for meeting. By properly designating a place for posting meeting notices, a public entity will be deemed to have given full and timely notice of any meeting so long as notice thereof was posted as the designated place at least twenty-four hours in advance thereof. Posting notices as the designated place will also suffice for municipal boards and commissions. Attached is Resolution #1, Series of2007, which identifies the glass case in the first floor lobby of City Hall as the designated place for posting of meeting notices. Approval of the consent calendar will adopt this resolution. RESOLUTION #1 Series of 2007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, DESIGNATING THE PUBLIC PLACE FOR POSTING NOTICES OF PUBLIC MEETINGS WHEREAS, the City Council of the City of Aspen, Colorado, deems it in the public interest to provide full and timely notice of all its meetings; and WHEREAS, the Colorado state legislature amended the Colorado Open Meetings Laws, Section 24-6-401, et. seq., C.R.S. to require all "local public bodies" subject to the requirements of the law to annually designate at the local public body's first regular meeting of each calendar year, the place for posting notices of public hearings no less than twenty-four hours prior to the holding ofthe meeting; and WHEREAS, "local public body" is defined by Section 24-6-402(1)(a) to include "any board, committee, commission, authority, or othef'advisory, policy-making, rule- making, or form ally constituted body of any political subdivision of the state and any public or private entity to which a political subdivision, or an official thereof, has delegated a governmental decision-making function but does not include persons on the administrative staff of local public body". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1 A public notice of each meeting held by the City Council of the City of Aspen and each meeting of any other board, committee, commission, authority, or other advisory, policy-making, rule-making, or formally constituted body of the City of Aspen, shall be posted by the City Clerk at least twenty-four hours prior to the holding of the meeting in the enclosed glass case in the lobby of City Hall, 130 South Galena Street, Aspen, Colorado. Section 2 The City Clerk shall notify each board, committee, commission, authority, or other advisory, policy-making, rule-making, or formally constituted body of the City of Aspen of the contents ofthis resolution and the other general requirements of the Colorado Open Meeting Law, C.R.S., Section 24-6-401 et. seq. Dated: , 2007 Helen Kalin Klanderud, Mayor I, Kathryn S. Koch, 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 January 8, 2007. Kathryn S. Koch, City Clerk MEMORANDUM VI' c.. TO: Mayor and City Council Randy Ready, Asst. City ManagM FROM: THRU: Steve Barwick, City Manager RE: January 2, 2007 Resolution #L, Series of 2007, Tourism Promotion Fund Agreement with the Aspen Chamber Resort Association DATE: SUMMARY: Attached for your approval is a proposed resolution and agreement with the Aspen Chamber Resort Association regarding the City of Aspen Tourism Promotion Fund. The term of this Second Amended and Restated Agreement would expire on December 31, 2009. The scope of services, reporting, budgeting, accounting and other provisions remain the same. The dates have been changed to correspond to the new three-year term, and the date ofthe required annual meeting between ACRA and the Aspen Lodging Association has become more flexible to allow the meeting to be held anytime before presentation of the tourism promotion plan and budget to the City Council. PREVIOUS COUNCIL ACTION: The 1.0% Visitor Benefit Tax on the short-term rental of commercial lodging accommodations was approved by Aspen voters in November 2000. Fifty percent (50%) of the proceeds from the new tax are dedicated to transportation services and fifty percent (50%) are dedicated to tourism promotion activities as described in Ordinance No. 45, Series 2000 and in the subsequent Agreement effective February 27, 2001 and in the First Amended and Restated Agreement dated November 24, 2003 between the City of Aspen and ACRA regarding the tourism promotion fund. Debbie Braun and Lisa Weiss presented the 2007 ACRA Marketing Plan and Budget to Council during a work session on November 28, 2006. RECOMMENDATION: Staff recommends approval of Resolution # 2 , Series of2007. RESOLUTION NO. ~ SERIES OF 2007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A SECOND AMENDED AND REST A TED AREEMENT BETWEEN THE CITY OF ASPEN, COLORADO AND THE ASPEN CHAMBER RESORT ASSOCIATION AND AUTHORIZING THE CITY MANAGER OR MAYOR TO EXECUTE SAID DOCUMENT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a Second Amended and Restated Agreement between the City of Aspen, Colorado and the Aspen Chamber Resort Association, LLLP, a copy of which document is annexed hereto and made a part thereof. 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 a Second Amended and Restated Agreement between the City of Aspen, Colorado and the Aspen Chamber Resort Association, a copy of which document is annexed hereto, and does hereby authorize the City Manager or Mayor of the City of Aspen to execute said document on behalf of the City of Aspen. RESOLVED, APPROVED, AND ADOPTED this _th day of January, 2007, by the City Council for the City of Aspen, Colorado. Helen Kalin Klanderud, Mayor I, Kathryn S. Koch, 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 January _,2007. Kathryn S. Koch, City Clerk SECOND AMENDED AND REST A TED AGREEMENT CITY OF ASPEN AND ACRA RE: TOURISM PROMOTION FUND THIS AGREEMENT is effective this _ day of January, 2007, by and between the CITY OF ASPEN (the "City") and the ASPEN CHAMBER RESORT ASSOCIATION ("ACRA"), RECITALS 1. The City and ACRA entered into that certain Agreement dated February 27, 2001. 2. The City and ACRA entered into that First and Restated Agreement dated November 24, 2003, and the parties hereto desire to amend said agreement. 3. The City Council adopted Ordinance No. 45, Series of2000, which imposed a 1.0% visitor benefits tax on condition that the voters of the City of Aspen approve the aforementioned ballot question at the November 7, 2000 municipal election, which the voters did approve. 4. Ordinance No. 45, Series of 2000, required the City Council to appropriate 50% of all revenues generated by the tax for marketing and promotional efforts for the City's tourism industry . 5. The City desires to contract with an organization capable of performing the marketing and promotional efforts contemplated by said ordinance. 6. The Aspen Chamber Resort Association desires to contract with the City to receive funds appropriated by the City Council for tourism promotion activities and to thereafter perform such tourism promotion activities on behalf of the City of Aspen. AGREEMENT In consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties agree as follows: I. Intent of the parties. The parties to this Agreement agree that the following sets forth their intent in entering into this agreement and the principles set forth below shall help guide all future interpretations of this Agreement and the parties continuing relationship with respect to the expenditure oftourism promotion funds of the City of Aspen. a. The parties acknowledge that the City shall use funds generated by the visitor benefits tax imposed by Ordinance No. 45, Series of2000, to meet its financial obligations pursuant to this Agreement. Accordingly, the parties acknowledge that the purpose, limitations, and administrative requirements of such funds as set forth in said ordinance shall apply to this Agreement. b. The parties intend to enter into a continuing relationship for multi-year planning and implementation of tourism promotion activities as set forth herein. c. The parties acknowledge that the purpose of the I % visitor benefits tax is to, inter alia, to generate sufficient funds primarily for planning and delivering tourism promotion activities on behalf of the City of Aspen. Accordingly, the marketing plan and budget contemplated by this Agreement shall be primarily for strategies and activities not otherwise funded by the City, ACRA or other third parties that support the goal of bringing new visitors to Aspen. 2. Scope of Services and Marketing Program. a. During the City's annual budget review and adoption procedures, ACRA shall recommend a marketing plan and budget for the City's forthcoming calendar year. b. The marketing plan and budget shall include the following: 1. planning and implementing the advertisement, promotion, and development of tourism in the City of Aspen; 2. tourism advertising, written and graphic materials, and cooperative and matching promotional materials; 3. gathering and disseminating information on the tourist industries and attractions of the City of Aspen; 4. purchasing such equipment, materials, and supplies as shall be necessary, to be used solely for tourist promotion; 5. contracting for those services and materials as may be incidental, necessary, and appropriate to the accomplishment of the purposes of the fund, including but not limited to, administrative, secretarial, clerical, or professional services deemed necessary; 6. promoting conferences, conventions, and meetings of a commercial, cultural, educational, or social nature to the City of Aspen; 7. promoting sporting events and social and cultural events sponsored by non-profit organizations; 8. defraying administrative and clerical costs of collecting and administering the tax, provided such expenses do not exceed the actual costs of such administrative and clerical costs. c. The marketing services shall be primarily for activities and strategies to promote tourism, and ACRA shall not defray costs of existing programs, special events and marketing efforts including airport host program, visitor center support, among others with funds from the marketing fund. Marketing funds may be used to enhance or promote existing tourism promotion programs and special events. d. The general nature and content of advertising paid for by the marketing fund shall follow these guidelines: the purpose of advertising and promotion shall be to enhance the year-round economy and public welfare of the City as a whole; advertising and promotional efforts shall avoid undue emphasis upon any particular commercial activity or enterprise that might be construed to create a competitive disadvantage to other similar commercial enterprises; and there shall be no advertising or promotion that is misleading or deceptive and therefore opposed to the public interest or prejudicial to the interests of the City. e. ACRA shall be solely responsible for planning and implementation of specific details of the marketing program and may include the lodging community in such planning. ACRA shall monitor the program and ensure conformance to its budget. At least 70 per cent of the funds are to be expended on program costs, rather than on support or staff. ACRA shall not use fund proceeds for its existing operational costs, for expenses not directly attributable to the purposes of this Agreement, or expenses not identified in its annual marketing plan and budget as approved by the City Council. f. The ACRA and the Aspen Lodging Association shall meet at least annually to review a tourism promotion plan and budget for the City's following fiscal year prior to presentation to the City Council. 3. Term. The term of this Agreement shall be from January 1,2007, through December 31,2009. This Agreement may be terminated by either party as set forth at Section 7, below. 4. Reporting and Budgeting. ACRA shall submit a detailed marketing program and expense budget for inclusion in City's budget packets, along with a review of the previous year's program. The City Manager shall provide budget recommendations, including an estimate of prospective tax proceeds, general fund contributions, prior year carry-forward balance, and interest income. The marketing fund shall be eliminated from the City's Grant Panel Review process in that it is its own separate fund. The ACRA is allowed and encouraged to attend and advise the City Council at all such meetings where the marketing program and budget is discussed. ACRA shall provide annual reports to the City on the fund and expenditures from it. 5. Accounting. The City shall pay over to ACRA the marketing funds raised by the tax on a monthly basis. ACRA shall be responsible for paying its vendors, suppliers, subcontractors, staff, and the like. ACRA shall maintain the tax fund receipts in a separate and interest-bearing bank account from its general funds. The City may inspect ACRA's records upon reasonable notice. All marketing funds accrued during the life of this Agreement shall be paid over to ACRA, although ACRA shall account for and refund any funds not expended for the purposes set forth in this Agreement. . 6. Equal Access. Any and all businesses within the City shall be permitted equal access and opportunity to participate in cooperative advertising efforts and package promotions specifically related to and supported by the use of the marketing funds referenced in this Agreement, whether or not the business is a member of the ACRA or the Aspen Lodging Association. That is, to the maximum extent possible, ACRA shall make a distinction between member services and other existing programs supported by membership dues, and programs supported by the City by this Agreement, and as to the latter, not discriminate based on membership in the organizations. 7. Termination. Either party may terminate this agreement effective on December 31, 2007, or December 31, 2008; provided, however, that written notice is delivered to the other party no later than September 30 of the year preceding the calendar year that termination is to become effective. 8. Other Restrictions and Provisions. a. The City shall not unreasonably withhold or redirect funds from the marketing funds raised by the visitor benefits tax that are to be handled by the ACRA. These are intended to be additional funds for marketing, and the intent is that the City will continue its existing funding (for the visitors center, etc.) as a floor, and not lessen those so that the marketing funds from the tax are not absorbed into existing ACRAlCity programs. b. The marketing funds shall not be used for city capital projects such as the construction of visitor information centers or other tourist amenities. c. The City Council shall not, without prior consultation with ACRA, change the agent assigned to manage the tourism marketing funds. Nor shall the City change that agent without some sort of cause and explanation, and it shall consult with the ACRA as to any new fund manager. d. ACRA shall not use any of the marketing funds for providing direct reservation services. e. ACRA shall not use fund proceeds to influence the outcome of any election. 9. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, representatives, successors and assigns and to any person into or with which any party hereto may merge, consolidate, or reorganize. 10. Acknowledgments. The parties declare that they have read and understand the terms of this Agreement, that they have had an opportunity to be represented by counsel with regard to the execution of this Agreement, and that they execute this Agreement voluntarily and without being pressured or influenced by any statement or representation made by any person acting on behalf of anyone else. 11. Indemnification. ACRA agrees to indemnify and hold harmless the City, its officers, employees, insurers, from and against all liability , claims and demands on account of injury, loss, or damage, arising out of or in any manner connected with this Agreement, if such injury, loss, or damage is caused in whole or in part, or is claimed to be caused in whole or in part by, the act, omission, error, mistake, negligence, or other fault of ACRA, employee, representative, or agent. ACRA agrees to investigate, handle, respond to, and to provide a defense for and defend against any such liability, claims or demands at the sole expense of ACRA, or at the option ofthe City, ACRA agrees to pay the City or reimburse the City for the defense costs incurred by the City in connection with, any such liability, claims or demands. If it is determined by the final judgment of a court of competent jurisdiction that such injury, loss, or damage was caused in whole or in part by the act, omission, or other fault ofthe City, its officers, or its employees, the City shall reimburse ACRA for the portion of the judgment attributable to such act, omission, or other fault of the City, its officers, or employees. If any lawsuit challenges the City's authority to impose the visitor benefits tax, the City shall be primarily responsible for the defense of the suit. 12. No Warranties. Except as expressly set forth in this Agreement, the parties have not made and make no other representations, warranties, statements, promises or agreements to each other. 13. Entire Agreement. The parties agree that this Agreement represents the entire agreement and supersedes all prior agreements between and among them with regard to the subject matter set forth herein, and may not be amended nor may any condition contained herein be waived except by written instrument signed by all parties 14. Notices. Notices hereunder shall be sent to the City Manager and the City Attorney at 130 S. Galena Street, Aspen CO 81611; to ACRA at Aspen Chamber Resort Association, 425 Rio Grande Place, Aspen CO 81611; and to Oates, Knezevich & Gardenswartz, P.C., 533 East Hopkins Avenue, Aspen CO 81611. 15. Counteroart Signatures. This doc.ument may be executed in counterpart original copies, with the original signatures on separate pages to be collated together on one original form of the agreement. CITY OF ASPEN, a municipal corporation Attest: By: Helen Kalin Klanderud, Mayor Clerk ASPEN CHAMBER RESORT ASSOCIATION Attest: By Debbie Braun, President Secretary MEMORANDUM Ila.. 1 TO: Mayor Klanderud and Aspen City Council /1 ~, Chris Bendon, Community Development Director ~WI Amy Guthrie, Historic Preservation Officer ~ THRU: FROM: RE: 434 East Cooper Avenue, Landmark Designation- Second Reading, Ordinance #40, Series of 2006 DATE: January 8, 2007 On behalf of the owners of the Bidwell Building, Herb Klein of Klein, Cote & Edwards, LLC made a request to continue Second Reading of Ordinance #40, landmark designation of 434 East Cooper Avenue, to February 12, 2007 due to scheduling conflicts among the owners of the Property who would like to be present for the hearing. While Community Development would like to se'e this landmark evaluation completed expeditiously, this request for continuation has offered an opportunity to reach an agreement regarding a deficiency in the City initiated land use case. In opening the file, staff erred by not including one element of a complete application, which is a written statement as to why the property owner was given less than two years notice of designation, per Section 26.4l5.030.D.l of the Aspen Municipal Code. Staff apologizes to Council for this failure in the application, which the property owner has agreed not to protest assuming that their continuance is approved. Staff supports continuinl! Second Readinl! of Ordinance #40 to the requested date of February 12, 2007. Letters from the applicant's attorney are attached. If Council does not wish to approve the continuance, staff recommends beginning the designation process again with the necessary amendments made to the file. KLEIN. COTE & EDWARDS, LLC January 2, 2007 Page I 'HERBERT S. KLEIN LANCE R. COTE, pc. JOSEPHE. EDWARDS, m, PC EBEN P. CLARK MADHU B. K.RlSHNAMURTI MAm-lEW M. LOWRY A lTORNEYS AT LAW hsk@kcelaw,nCI Irc@k:celaw.net jee@kcelaw.net epc@kcelaw,net mbk@kcelaw,net mml@kcelaw,net 20] NORm MILL STREET, STE 203 ASPEN, COLORADO 8]611 TELEPHONE: (970) 925-8700 FACSIMILE: (970) 925.J917 . also.dmilledinC.liforni. January 2, 2007 Via EMAIL TOamvg@ci.aspen.co.us Amy Guthrie City of Aspen Community Development Department 130 S. Galena Street Aspen, CO 81611 Re: 434 E. Cooper Avenue (Bidwell Building- the "Property") Dear Amy: I am writing in response to your letter oftoday' s date concerning the defect in notice to the owner of the above property prior to the City's seeking to designate the Property as a historic landmark, under the provisions ofLUC Sec. 26.415.030 D.I, as it relates to ourrequestthatthe hearing scheduled for January 8, 2007, be continued to February 12,2007. On behalf ofthe owner of the Property, I am authorized to agree that if the Council approves our request for a continuance of the Landmark Designation hearing to February 12, 2007, the owner will waive its right to an explanation of non-compliance with Section 26.415.030.0.1 and you may add a letter addressing this notification issue to the application file. This waiver is expressly conditioned upon the approval of our request for the continuance and is limited to the present City application seeking Landmark Designation. In the event that Council does not approve the continuance request. the owner will assert that the application is defective and request that the Landmark Designation process be abandoned or if the City insists on continuing to seek the Designation, then that the process be started over again from the beginning in full compliance with all relevant land use code requirements. Please feel free to contact me if you have any questions. Very tru! y yours, Klein, Cote & Edw/ LLC " . .,/~------.. . By: Herbert S. Klein KLEIN. COTE & EDWARDS, LLC ATTORNEYS AT LAW HERBERT S. KLEIN LANCE R. cort, PC. JOSEPH E. EDWARDS, III, PC EBEN P. CLARK MADHU B. KRISHNAMURTI MATTIIEW M. LOWRY hsk@kcelaw.net lrc@kcelaw.net jee@kcelaw.net epc@kcelaw.net mbk@kcelaw.net nunl@kcelaw.net 201 NORTH MILL STREET, STE. 203 ASPEN, COLORADO 81611 TELEPHONE: (970) 925-8700 FACSIMll..E: (970) 925-3977 * also admilled in Califomia December 22, 2006 Via Hand Deliverv Members of the City Council, City of Aspen 130 S. Galena Street Aspen, CO 81611 Amy Guthrie City of Aspen Community Development Department 130 S. Galena Street Aspen, CO 81611 Re: 434 E. Cooper Avenue (Bidwell Building- the "Property") - City Initiated Landmark Designation - Second Request for Continuance of Second Reading Dear Honorable Members of the City Council and Amy: I am writing to request a continuance of second reading and public hearing presently scheduled for January 8, 2007, on the City's application to designate the Property as a historic landmark. We request that the hearing be continued to February 12, 2007. The reason for our request is due to several scheduling conflicts among the owners of the Property and our historic resource consultant. Mark Bidwell wishes to be present and has to travel from Florida to attend. There is an HPC hearing on a matter concerning the Property scheduled for February 14th and if both hearings could occur close in time to each other, Mr. Bidwell would not be compelled to make two trips during the difficult and unpredictable winter season. In addition, our historic consultant, Lisa Purdy, will be dealing with family matters that require her presence in the Mid-West in January and would also prefer the February 12th date. We would greatly appreciate your consideration in approving this request. I thank you in advance for your anticipated cooperation in this request. Very truly yours, Klein, Cote & Edwards, LLC , / /;;:/"1 / ~ ,/, / . / / / By: " "-.,// ./ He ert S. Klein BidweIl\Councilltr-continuance-2adoc MEMORANDUM IXb TO: Mayor Klanderud and Aspen City Council Chris Bendon, Community Development Director (1~ Jessica Garrow, Planner JM07 THRU: FROM: RE: Stage III Building Redevelopment (625 E. Main St) - Subdivision Review - Second Readinl!: of Ordinance No.~ I , Series 200th (CONTINUANCE REQUEST) MEETING DATE: January 8, 2007 Aspen Main Street Properties LP, the Applicant for the Stage III redevelopment has requested a continuance for the scheduled January 8, 2007 public hearing. The Applicant is continuing to work on modifications to the building design and will be prepared to present them at a later hearing date. The continuance request is for January 22nd. The full second reading packet will be provided for the continued meeting date. Staff will be available at the January 8th meeting to answer any questions about this continuance. CITY MANAGER COMMENTS: EXHIBIT A - Continuance Request from Applicant f:(ni~(f; It HAAS LAND PLANNING, LLC December 15,2006 Ms. Jessica Garrow Aspen City Planner 130 South Galena Street Aspen. CO 81611 RE: Request for Continuance, Ordinance NO.\tl., Series of 2007 625 E. Main Street (Stage III) Subdivision, Second Reading Dear Jessica: Aspen Main Street Properties, LP hereby respectfully requests that second reading of the 625 E. Main Street (Stage III) Subdivision application be continued from January 8, 2007 to January 22, 2007. The applicant is in the process of revising several aspects of the proposed building design in an attempt to respond to comments heard during the previous hearing on the matter. The applicant feels it is necessary to be certain that revised plans presented to staff prior to the hearing date and to Council at the public hearing are capable of continued compliance with zoning and building codes. Due to workloads and holiday schedules, the revisions will not be completed to the necessary level of confidence in the time available before the currently scheduled hearing date. As such, on behal f of Aspen Main Street Properties, LP, I am respectfully requesting that you please notify the City Council and the City Clerk's office of this request and confiml with me that the continuance has been granted. If 1 can be of further assistance in any way. or if you should have any questions. please do not hesitate to contact me. You can reach me at the phone number provided, or by email atmhaas@sopris.net. Yours truly, Haas Land Planning, LLC ~CP Owner/Manager c:/~ly DocumcnlS/City ApplicllllonsfSlagc 3/CC Conlinllance Request . 201 N. MILL STREET. SUITE 108 . ASPEN, COLORADO' 81611 . PHONE: (970) 925.7819 . FAX: (970) 925.7395 . .~c ALPERSTEIN & COVELL, PC ATTORNE'rS AT lA\v DONALD '\" ALPI:RSTEIN CYNIHIAr COVEll ANDREA L.. BENSON 1600 BROADWAY, SUITE 2350 DENVER. COlOR'\OO R0202-492I dwa@alper'steincoveU..com cfc@alpelstelncovell.com alb@alpersteincovell,com GilBERT Y. MARCHAND, JR. Of Counsd TELEPHONE (303) 894-8]91 r AX (303) 861-0420 TO: Mayor and City Conncil FROM: Phil Overeynder and Cynthia Covell RE: Golf Couse Properties: Amendment to Water Service Agreement and Raw Water Agreement DATE: December 4, 2006 Backgmund The City is party to a 1996 Water Service Agreement which authorizes water service to the Golf Course Properties Lot Split These properties are located at 39590 State Highway 82 (Lot 1) and 39600 State Highway 82 (Lot 2) The Golf Course Properties are located across the highway from the golf COUlSe In the mid-1990s, they were owned by John and Cindy Galardi (Lot 1) and Gerd Zeller (Lot 2) Presently, Alston Gardner and Barbara Lee own Lot 1, and Archer and Sandra Bishop own Lot 2. These lots are located outside ofthe city limits Under the OIiginal water service agreement, the City agreed to provide treated water service to the lots in an amount not to exceed 8 ECUs, with a maximum of fOUl acre-feet per year OutdoOl inigation with City treated water was limited to 2000 square feet per lot The water service agreement also states that the City would provide raw water service pursuant to a separate raw water agreement, in an amount reasonably required for outdoOl irrigation, from an existing well on the property The raw water agreement was never executed, and the existing well could not be I ehabilitated. The property owners, having installed expensive landscaping while trying to rehabilitate the well, asked for and received City permission to irrigate with treated water on a temporary basis They also filed a water court application for water rights for a pond and a shar.ed inigation system For a considerable time, the City and the property owners were unable to resolve then differences concerning their respective rights and obligations under the Water Service Agreement, and what sort oftaw water agreement should be developed Last spring, City Council authorized a 1 declaratory judgment lawsuit to determine the parties' rights and liabilities under the Water Service Agreement. This led to negotiations with the property owners, and a settlement which included the parties' agreement to the following: 1 No treated water use outdoors as of April I, 2006, 2. Compliance with the 1996 Water Service Agreement requirement that property owners quitclaim all right, title and interest in and to the Holden Ditch. 3 Conveyance to the City of the water rights the property owners have applied for in the water court 4. No outdoor use ofueated municipal water provided by the City, and limitation of the City's total annual water delivery obligation to 325 acre-feet (rather than4.0 acre-feet as provided in the original Water Service Agreement) 5 A Raw Water Agr'eement that provides the following: a The City will be the sole provider of raw and treated water to the Golf Course Properties, Lots I and 2 b. Raw water will be provided via a lease to the property owners ofthe water rights to be decreed in their water court application. c Existing ponds and existing irrigated landscaping (2,75 acres), as shown on a map attached to the Raw Water Agreement, may be irrigated using unu.eated water from the wells. There will be no expansion of iuigation d. The landscaping that is presently being installed on the Highway 82 side of the berm on these properties will use low-water-consumption native vegetation, which must be established by September 30, 2007, and not require irrigation thereafter. e The property owners will pay the City's annual raw water delivery charges, and costs associated with wells, and the augmentation supplies for the wells. f The City will forgive revenues foregone as a result of assessing tap fees that did not take into consideration the amount ofueated water irrigation that actually occurred prior to April I, 2006 g Curtailment provisions will require the property owners not to use the wells when and to the extent the City imposes resuictions on raw water deliveries in accordance 2 with raw water cUltailment policies, which policies shall be no more restrictive on the Golf COUlse Properties Lots I and 2 than City cUltailment ordinances applicable to outdoor treated water uses within the City. The Water Service Agreement and the Raw Water Agreement may be terminated by the City for default or violation by the property owners, following appropriate notice and determination of defimlt or violation and a right to cure Upon termination for any reason, including default or violation, the water rights decreed would be reconveyed to the property owuer.s, and they would be disconnected entirely from the City water system. An Amended Water Service Agreement and a Raw Water Agreement including these provision~ has been executed by the property owners. They have also executed a deed conveying their interest (if any) in the Holden Ditch and a deed conveying their irrigation system water rights to the City Recommendation We re~ommend that Council approve the Amendment to Water Service Agreement and the Raw Water Agreement in the forms attached to the proposed ordinance These agreements will eliminate outdoor water use with treated water, provide greater certainty about raw water use and landscaping on these properties, and give the City the option to terminate the agreements entirely (and require disconnection from the City's treated water system) if the agr.eements are violated This settlement thus will provide the City with greater control over water use at these properties, prevent filrther expansion of high water use landscaping. 3 ORDINANCE NO. bo Series of 2006 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING AN AMENDMENT TO THE WATER SERVICE AGREEMENT DATED SEPTEMBER 16, 1996 WITH GERD M. ZELLER AND JOHN GALARDI AND CINDY GALARDI FOR PROVISION OF TREATED WATER SERVICE OUTSIDE THE CITY LIMITS TO PROPERTIES KNOWN AS THE GOLF COURSE PROPERTIES (39590 STATE HIGHWAY 82, AND 39600 STATE HIGHWAY 82), AND APPROVING A RAW WATER AGREEMENT FOR THE SAME PROPERTIES. WHEREAS, City Council approved ordinance No. 24, Series of 1996, which authorizes a Water Service Agreement whereby City treated water service was extended extraterritorially to the Golf Course Properties (39590 State Highway 82 and 39600 State Highway 82), subject to the terms and conditions of said Water Service Agreement; and WHEREAS, the Water Service Agreement was recorded with the Pitkin County Recorder on September 4, 1997, at Reception No. 408086; and WHEREAS, the Water Service Agreement authorizes provision of treated City water to the Golf Course Properties for lawful in-building uses, fire protection, swimming pools, and irrigation of up to 2,000 square foot on each lot of the Golf Course Properties; and WHEREAS, the Water Service Agreement contemplated execution of a Raw Water Agreement, which was never completed; and WHEREAS, disputes and differences arose between the City and the original owners of the Golf Course Properties regarding the parties' respective rights and obligations pursuant to the Water Service Agreement; and WHEREAS, the current owners ofthe Golf Course Properties, Archer Bishop and Sandra Bishop and Alston Gardner and Barbara Lee, have agreed to amend the Water Service Agreement to limit their use of City treated water to indoor uses and minor outdoor uses only, with no irrigation; and WHEREAS, the current owners of the Golf Course Properties have also agreed to enter into a Raw Water Agreement whereby they will convey certain water rights to the City in return for the City's agreement to provide untreated water for irrigation and aesthetic uses on the Golf Course Properties as described in said Raw Water Agreement; and WHEREAS, the City Council has had an opportunity to review with staff the proposed amendment to the Water Service Agreement and the Raw Water Agreement, and to obtain such further information as it deems necessary to evaluate the amendment and the Raw Water Agreement, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT Section 1. The City Council of the City of Aspen hereby determines that the proposed Amendment to Water Service Agreement, which authorizes the City to provide treated water to the Golf Course Properties (Lot I and Lot 2, Golf Course Lot Split, Pitkin County, Colorado) for indoor and minor outdoor uses, is in the best interest of the City and substantially complies with the City of Aspen water policy for extraterritorial water services, as set forth in Resolution No. 5, Series of 1993, as amended, and therefore agrees to amend the Water Service Agreement, on the terms and conditions set forth in the Amendment to Water Service Agreement attached hereto and incorporated herein by reference. Section 2. The City Council of the City of Aspen hereby determines that the proposed Raw Water Agreement attached hereto and incorporated herein by reference is also in the best interest of the City, and the City Council therefore agrees to enter into said Raw Water Agreement. Section 3. This ordinance shall not have any effect on existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of ordinances repealed or amended as herein provided, and the same shall be construed and concluded under such prior ordinances. Section 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 4. A public hearing on the ordinance shall be held on the day of , 2006, in the City Council Chambers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen on the _ day of ,2006. Mayor Attest: City Clerk FIN ALL Y ADOPTED, PASSED AND APPROVED THIS ,2007. DAY OF Mayor Attest: City Clerk F: \Client Files\Aspen\GolfCourse\ordinance. wpd Final 103106 AMENDMENT TO WATER SERVICE AGREEMENT This Amendment is made to that certain Water Service Agreement dated September 16, 1996 and recorded September 4, 1997 with the Pitkin County Recorder at Reception No. 408086 ("Water Service Agreement"), among the City of Aspen, Colorado ("City"), Gerd M. Zeller and John Galardi and Cindy Galardi ("Original Applicants") regarding water service to the Original Applicants' real property described as Lot 1 and Lot 2, Golf Course Properties Lot Split, according to the recorded Plats thereof in Plat Book 18 at Page 26, Plat Book 18 at Page 74, and Plat Book 19 at Page 98, Pitkin County, Colorado, and rcferred to in this Agreement as the "Subject Property." Recitals WHEREAS, the Subject Property is now owned by Sandra and Archer Bishop, Jr. (Lot 2), and J. Alston Gardner and Barbara Lee (Lot I), who are snccessors in interest to the Original Applicants, and referred to herein as "Applicants;" and WHEREAS, the water system infrastructure that was to be constructed as described in the Water Service Agreement has been constructed, and the City presently supplies treated water service to the Subject Property; and WHEREAS, due to the passage of time, changed circumstances, and the need to clarify certain provisions of the Water Service Agreement, the parties have determined that the Water Service Agreement should be amended, NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. References to "Applicants" in the Water Service Agreement shall herein be deemed references to the Applicants herein identified, and their respective heirs, successors and assigns. All other terms in the Water Service Agreement that are defined terms shall have the same meaning in this Amendment, unless a different meaning is specifically stated. 2. The second sentence of Paragraph I of the Water Service Agreement is amended to read as follows: Pursuant to this Agreement, the City shall provide treated water service to the Project and the Subject Property in an amount not to exceed eight (8) ECUs, provided, however, that the maximum volume of water the City shall be required to provide to the Project and the Subject Property pursuant to this Agreement shall not exceed 3.25 acre-feet per year. Final 103106 3. Paragraph 7 of the Watcr Service Agreement is deleted in its entirety, and replaced with the following Paragraph 7: 7. Conveyance of Water Rights. Permits and Structures. Applicants shall diligently pursue a final decree in Case No. 2002CW42, presently pending in the Water Court, Water Division No.5, and upon enlIy of a final decree, shall convey to the City, the following water rights and well pemlits, by quitclaim deed, free and clear of liens and encumbrances, for no additional consideration. The water rights described in (I) - (6) below are herein referred to as the "Water Rights" and are specifically identified as follows: (I) 5.75 acre-feet/year of fully consumable water attributable to the Stapleton Brothers Ditch, decreed October 16, 1933 in CA 3000, Garfield County District Court, with an appropriation date of June 30, 1904, with consumptive use quantified in Case No. 99CW306, Water Court, Water Division No.5, on January 31, 2005. (2) .1 cfs of Stapleton Brothers Ditch Enlargement and Water Right, Priority No. 777, decreed November 5, 1971 in CA 5884, Garfield County District Court, with an appropriation date of September 22,1960. (3) Rights available to Applicants pursuant to Water Allotment Contract No. 456 with Basalt Conservancy District dated April 12, 2005, as amended October 11,2005, which authorizes allotment of water in accordance with said contract in the amount of 6.4 acre- feet per year. (4) Bishop Well No. I, located in the SEI/4, NEI/4, Section II, Township 10 South, Range 85 West of the 6th P.M., at a point approximately 2040 feet from the North section line, and 1240 feet from the East section line of said Section II, in Pitkin County, permit no. 64l55-F. (5) Gardner/Lee Well No.1, located in the SEI/4, NEl/4, Section 11, Township 10 South, Range 85 West of the 6th P.M., at a point approximately 2175 feet from the North section line, and 1625 feet from the East section line of said Section II, in Pitkin County, permit no. {,yqgS - f . 2 Final] 03 J 06 (6) Bishop Pond, located in the SW1I4, NE1I4, Section II, Township 10 South, Range 85 West of the 6'h P.M., at a point approximately 2047.5 feet from the North section line, and 1483.5 feet from the East section line of said Section 11, in Pitkin County, with a capacity of.6 acre-foot. Conveyance ofthc above Water Rights shall be a prerequisite to continued provision of treated water service by the City pursuant to the Water Service Agreement and this Amendment after thirty days from entry of a final decree in Case No. 2002CW42. In addition, upon execution of this Agreement, Applicants shall convey to the City by quitclaim deed all of their right, title and interest in and to the Holden Ditch, and all water rights decreed thereto, and shall not oppose any water court proceedings brought to change or defend the Holden Ditch water rights. The City agrees that it will not undertake any water court proceedings to change the Water Rights described in subsections (1) - (6) above. Following conveyance to the City, and so long as the City owns the Water Rights, the City shall be tlle applicant in all water court proceedings to maintain diligence or to make absolute the Water Rights, and Applicants shall assist the City in such proceedings by timely providing information necessary to maintain diligence and/or to make the Water Rights absolute. Applicants shall not oppose any such applications for finding of reasonable diligence or to make the Water Rights absolute, although they may file statements of opposition in order to be informed of the course of the proceedings. Should Applicants file statements of opposition for such purposes, they will promptly thereafter stipulate to entry of a decree upon the pending application confirming diligence or making the water rights absolute. 4. The second paragraph of Paragraph 13 is deleted, and is replaced with the following: The treated water delivered by the City pursuant to this Agreement may be used for all lawful in-building municipal purposes. As of April I, 2006, no treated water will be used for any outdoor purposes except the filling of swimming pools and fire protection purposes. All treated water use will be consistent with the City's Water Policy Resolution No.5, as amended, series of 1993, and water conservation ordinances. Notwithstanding the foregoing, treated water service will be provided to the Subject Property only so long as all required backflow prevention devices are properly installed, tested and maintained, no unprotected cross-connections, structural or sanitary hazards exist, and so long as the City's treated water is used 3 Fillal103106 for purposes authorized by this Agreement. Applicants' water systems (for both treated and raw water) will be available for inspection to authorized City representatives as provided in the Aspen Municipal Code to determine whether cross-connections or other structural or sanitary hazards exist and to confirm that treated municipal water is being used as authorized by this Agreement, and is not being used for outdoor irrigation or aesthetic purposes. Upon reasonable request by the City, Applicants shall provide samples of their municipal water and their irrigation water to allow the City to confirm thc source of water being used at a particular location, and to verify the absence of cross-connection. Treated water service may be suspended if a required backflow prevention device does not work, is removed or is bypassed, or if an unprotected cross-connection exists on the Subject Property. Service will not be restored until such conditions or defects are corrected at Applicants' expense. 5. Paragraph 14 is deleted and replaced with the following: The City will be the sole provider oftreated and untreated water service to the Subject Property, and shall provide untreated water service pursuant to the Raw Water Agreement attached hereto as Exhibit A. 6. Paragraph 23 is deleted and replaced with the following new paragraph 23: 23. Enforcement bv the City. The parties to this Agreement recognize and agree that the City has the right to enforce its rules, polices, regulations, ordinances and the terms of this Agreement by suspension of the supply of water provided hereunder, provided, however, that Applicants will be given notice of any such violation and a right to cure as provided in the Code or by Aspen Water Department Standards in effect at the time the notice is given, but in no event shall the cure period be less than seven days. In addition, in the event of a final court determination that the Customers (or any of them) have breached the Raw Water Agreement, the City may also suspend the supply of water provided hereunder, after providing seven days notice of suspension for such violation and without an additional cure period. Suspension of service may be made pursuant to this paragraph whether or not the Raw Water Agreement itself is terminated. In addition, in the event that Applicants (or any of them) or any user who has purchased or leased a portion of the Subject Property violates provisions of the City's Code, rules, polices, standards, regulations, ordinances applicable to municipal water customers, or the terms of this 4 Final 1 031 06 Agreement, the City shall have all remedies available to it at law or in equity, or as provided in the Code or in this Agreement, including but not limited to the right to place a lien against the Subject Property, the right to foreclose such lien, and the right to specific perfom1ance of this Agreement. Without limiting the foregoing rights and remedies, Applicants agree that the City may also enforce such violations by injunction, the parties agreeing that the damages to the City from such violations are irreparable, and there is no adequate remedy at law for such violations. The City shall be free from any liability arising out of the exercise of its rights under this paragraph. 7. Paragraph 24 is deleted in its entirety and replaced with the following new paragraph 24: 24. Termination. This Agreement shall continue until tem1inated. It may be terminated (1) by mutual agreement of all parties, (2) together with termination of the Raw Water Agreement, at the written request of Applicants, as provided below, (3) upon a final court determination that Applicants have breached this Agreement; or (4) upon a final court determination that Applicants have breached the Raw Water Agreement. (1) Termination bv Mutual Agreement: This Agreement may be terminated by mutual written agreement of all parties upon terms and conditions acceptable to all parties. (2) Termination at Applicants' Election. If Applicants wish to terminate this Water Service Agreement and the Raw Water Agreement (both of which must be terminated if termination is elected pursuant to this paragraph 24(2)), they shall provide written notice of termination, signed by all Applicants or their successors in interest, to the City at least 30 days prior to termination. Upon expiration of said 30-day notice period, Applicants shall, at Applicants' expense, promptly take all actions required by the City to disconnect the Subject Property from the City treated water distribution system. Upon such disconnection, the City shall reconvey the Applicants' Water Rights described in paragraph 3 above (the restated Paragraph 7 ofthe Water Service Agreement), but not including the Holden Ditch, to Applicants by quitclaim deed, without intervening impairment, loss or encumbrance caused by the City, at no charge, and the City shall have no further obligation to provide raw or treated water service to the Subject Property. Applicants shall be responsible for all costs and fees for 5 Final J 03 J 06 disconnection, and all water charges owing as of the date of disconnection. (31 Termination as a Result of Breach. Upon a final court determination that Applicants (or any of them) have breached the Raw Water Agreement, or upon a final court determination that Applicants (or any of them) have breached this Agreement, the City may terminate this Agreement by giving notice of termination, and no further right to cure must be provided. Unless the Applicants and the City otherwise agree, following the City's notice of termination, Applicants shall permanently disconnect from the City's treated water system, upon the earliest of (a) entry ofa decree of the Water Court, Water Division No.5, authorizing in-house uses of water from Applicants' wells or other wells; (b) approval of a substitute water supply plan that allows in-house uses of water from Applicants' wells or other wells; (c) Applicants' connection to the treated water system of another water provider; or (d) one hundred twenty (120) days from the date of Notice of Termination. Upon termination, unless a mutual agreement for termination provides otherwise, the City shall reconvey the Applicants' Water Rights described in paragraph 3 above (the restated Paragraph 7 of the Water Service Agreement), but not including the Holden Ditch, to Applicants by quitclaim deed, without intervening impairment, loss or encumbrance caused by the City, at no charge, and the City shall have no further obligation to provide raw or treated water service to the Subject Property. Applicants shall be responsible for all costs and fees for disconnection, and all water charges owing as of the date of termination. 8. Paragraph 29 is revised to include the following addresses for purposes of notice, and to delete the names and addresses of the Original Applicants. 6 Final 1 031 06 Archer Bishop Jr. and Sandra Bishop 39600 Highway 82 Aspen, CO 816]] J. Alston Gardner and Barbara Lee 39590 Highway 82 Aspen, C08161l and and P.O. Box] 1 ]46 Knoxville, TN 37939 3155 Roswell Road, Suite 330 Atlanta, GA 30305 with copy to with copy to Patrick, Miller & Kropf, P.c. Attn: Paul L. Noto, Esq. 730 E. Durant Avenue, Suite 200 Aspen, CO 8161] Patrick, Miller & Kropf, P.C. Attn: Paul L. Noto, Esq. 730 E. Durant Avenue, Suite 200 Aspen, CO 81611 9. The Water Service Agreement, as amended herein, remains in full force and effect. IN WITNESS WHEREOF, the parties hereto set their hands on the date and year above first written. Attest: CITY OF ASPEN By: (JLS Archer Bishop, Jr. as wn joint tenancy of Lot 2, Gol Properties Lot lit 4;~hc/ &'l~ Sandra Bishop as owner in joint tenancy of Lot 2 Golf Course Properties L tSplit J er as owner in . int tenancy of Lot 1, Golf Course 7 Final 103106 Properties Lot Split STATEOF -l'~~F--v ) ) ) COUNTY OF 14J"fC Lot Split SUBSCRIBED AND SWORN to before me this /30 day of 0d'-'n""c>~ 2006 by Archer Bishop Jr. and Sandra Bishop, who personally appeared before me. WITNESS my hand and official seal. My commission expires: 7in>'-wt.-I."A ;r,).<J 0 7 STATEOF 0olwMo COUNTY OF t~ k.. ) ) ) {c SUBSCRIBED AND SWORN to before me this 10TH day of NOVLVhk , 2006 by 1. Alston Gardner and Barbara Lee, who personally appeared before me. WITNESS my hand and official seal. lLR, '2-01D N~i~~ 8 Final 103106 CITY OF ASPEN RA W WATER AGREEMENT This Raw Water Agreement is entered into this day of 2006, by and bctwccn thc City of Aspcn, Colorado ("City"), a home rule municipality with its principal addrcss at 130 South Galcna Strcet, Aspen, CO 81611 and Sandra and Archer Bishop, Jr., and J. Alston Gardner and Barbara Lee. (Sandra Bishop, Archer Bishop, Jr., J. Alston Gardner and Barbara Lee are herein referred to as "Customers.") WHEREAS, the City currently owns, operates and maintains in accordancc with the laws of the State of Colorado and the Charter, Code, policies, and ordinanccs ofthc Cityof Aspcn, Colorado, the City of Aspen water system, which includes, among other things, watcrrights, decrecs, structures and facilities permitting delivery of raw waterto various locations within and without the City limits; and WHEREAS, Customers own certain land outside the City limits, described as Lot I and Lot 2, Golf Course Properties Lot Split, according to the recorded Plats thereof in Plat Book 18 at Page 26, Plat Book 18 at Page 74, and Plat Book 19 at Page 98, Pitkin County, Colorado, and referred to in this Agreement as the "Subject Property;" and WHEREAS, in Case No. 2002CW42, Water Court, Watcr Division No.5, Customers are seeking adjudication of changes of water rights, underground water rights, a storage right, and approval of a plan for augmentation (including water rights and contract rights to provide augmentation supplies), all of which are referred to in this Agreement as the "Customer Water Rights;" and WHEREAS, Customers receive municipal water service from the City pursuant to an extraterritorial water service agreement dated September 16, 1996, and recorded September 4, 1997, with the Pitkin County Recorder at Reception No. 408086, and amended ,2006, and recorded (the "Water Service Agreement"), and have agreed to convey the Customer Water Rights to the City; and WHEREAS, Customers wish to convey to the City and lease back the Customer Water Rights pursuant to this Raw Water Agreement for irrigation and aesthetic uses on the Subject Property, as provided in this Agreement; and WHEREAS, this Raw Water Agreement is entered into in conformity with and subject to the laws of the State of Colorado and the Charter, Code, policies, ordinances, rules and regulation ofthe City; NOW THEREFORE, in consideration of the mutual promises contained herein, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Final 103106 I. Conveyance ofWatcr Rights. Customers agree that upon entry of a final decrcc ofthe Customer Water Rights in Case No. 2002CW42, thcywill convey the Customer Water Rights to thc City by quitclaim deed, free and clear of liens and encumbrances, for no additional consideration. Thc Customcr Watcr Rights are specifically identified as follows: a. 5.75 acre-feet/year offully consumable watcr attributable to the Stapleton Brothers Ditch, decreed October 16, 1933 in CA 3000, Garficld County District Court, with an appropriation date of June 30, 1904, with consumptive use quantificd in Case No. 99CW306, Water Court, Water Division No.5, on January 31, 2005. b. .1 cfs of Stapleton Brothers Ditch Enlargcment and Water Right, Priority No. 777, decreed Novcmber 5, 1971 in CA 5884, Garficld County District Court, with an appropriation date of September 22, 1960. c. Water rights available to Customers pursuant to Water Allotment Contract No. 456 with Basalt Conservancy District dated April 12, 2005, as amended October II, 2005, which authorizes allotment of water in accordance with said contract in the amount of 6.4 acre-feet per year. d. Bishop Well No. I, located in the SEl/4, NEl/4, Section II, Township 10 South, Range 85 West of the 6th P.M., at a point approximately 2040 feet from the North section line, and 1240 feet from the East section line of said Section II, in Pitkin County, permit no. 64155-F. e. Gardner/Lee Well No. I, located in the SEl/4, NEI/4, Section 11, Township 10 South, Range 85 West of the 6th P.M., at a pointapproximately2175 feet from the North section line, and 1625 fcct from the East section line of said Section 11, in Pitkin County, permit no. "4C\'aS-F f. Bishop Pond, located in the SWl/4, NEI/4, Section II, Township 10 South, Range 85 West of the 6th P.M., at a point approximately 2047.5 feet from the North section line, and 1483.5 feet from the East section line of said Section II, in Pitkin County, with a capacity of.6 acre-foot. Following conveyance to the City, and so long as the City owns the Customer Water Rights, the City shall be the applicant in all water court proceedings to maintain diligence or to make absolute the Customer Water Rights, and Customers shall assist the City in such proceedings by timely providing information necessary to maintain diligence and/or to make the Customer Water Rights absolute. Customers shall not oppose any such applications for finding of reasonable diligence or to make absolute the Customer Water Rights, although they may file statements of opposition in order to be informed of the course of the proceedings. Should Customers file statements of opposition for such purposes, they will promptly thereafter stipulate to entry of a decree upon the pending application confirming diligcnce or making the water rights absolute. 2 Final 103106 2. Provision of Raw Water. The City will be thc sole provider of raw water to thc Subject Propcrty. No additional supplies will be developed, purchased or appropriatcd for or used on the Subject Property without the prior agrecment of all parties, and amendment of this Raw Water Agreement. Upon conveyance to the City of the Customer Water Rights, the City will lease, subject to the provisions this Raw Water Agrcement, water produccd by the Customer Water Rights to Customcrs for raw water irrigation and aesthetic purposes on the Subjcct Property. Said water shall be providcd for use in accordance with the decree entered in Case No. 2002CW42 and all requirements of statc water administration officials, provided, however, that the City shall not be requircd to providc water hereunder at such times as, and to thc extent that, (1) state water administration officials dctermine that the water rights decreed in Casc No. 2002CW42 are out of priority and cannot bc augmented in accordance with the augmentation plan, or (2) the City imposes restrictions on raw water deliveries in accordance with raw water curtailment policies, which policies shall be no more restrictivc on deliveries hereunder to the Subject Property than City curtailment ordinances or policies applicable to outdoor treated water uses within the City. Should raw water deliveries need to be curtailed, either because of state administrative ordcrs, or because the City has imposed restrictions on raw water deliveries as described in the foregoing sentence, Customers agree to limit or curtail well withdrawals as required, and to limit or curtail diversions to storage, until Customers are notified that such raw water may again be used. The provisions of this paragraph shall not preclude the City from suspcnding raw water deliveries as provided in paragraphs 9 and 14. 3. Use of Raw Water on Subiect Property. All raw water use on the Subject Property shall be in accordance with the decree entered in Case No. 2002CW42, and as further set forth herein. The Customers may use the raw water leascd to them pursuant to this Raw Water Agreement for irrigation ofthe existing currently-irrigated landscaping as shown on Exhibit A, which depicts the currently- irrigated areas, the ponds, water features, the arcas not currently irrigated, and an area on Lot 2 whcrc native vegetation is being installed (identified on Exhibit A as "Temporary Irrigation.") The area identified on Exhibit A as "Temporary Irrigation" may be irrigated until September 30, 2007, and shall not thereafter be irrigated. The City shall conduct an onsite inspection after September 30, 2007, to confirm that all temporary irrigation systems have been disconnected and removed. The raw water herein provided may be used in accordance with the decree entered in Case No. 2002CW42 to fill the Bishop Pond for irrigation control, and for aesthetic, piscatorial, fire protection and recreation uses as provided in said decree. Other than the temporary irrigation in the area shown on Exhibit A, there will be no expansion of irrigation to areas not irrigated as of April l, 2006, and not shown as "currently irrigated landscaping" on Exhibit A, and there will be no additional water features. There will be no cross-connections of the raw water irrigation system to the City's treated water system. Customers will be responsible for the proper installation, maintenance and testing of required backflow prevention devices, and for assuring that unprotected cross-connections, structural or sanitary hazards exist. 3 Fillal1 031 06 Customers' water systems (for both treated and raw water) will be available for inspcetion as provided in the Aspen Municipal Code, to authorized City reprcscntatives to determine whether cross-eonncetions or other structural or sanitary hazards exist, to confirm that no treated municipal watcr is being uscd for outdoor irrigation or acsthetic purposes, to confirm that the irrigated landscaping is not expanded from the arcas authorized for irrigation as shown on Exhibit A, and to confirm compliance with curtailment requiremcnts. Upon reasonable request by the City, Applicants shall provide samples oftheir municipal watcr and their irrigation water to allow the City to confirm the source of water being used at a particular location, and to vcrify the absence of cross-connection. 4. Structures and Facilities. Customers shall be and remain thc owners of the wells, the Bishop pond structure, and all other structures and facilities neccssary to utilize the Customer Water Rights, and shall be responsible for all operation, maintenance, repair and replacement of such structures and facilities, and for payment of all amounts duc to Pitkin County for the 5.75 acre-feet of fully-consumable water described in paragraph I (a) above, all amounts due to the Walter Paepke Life Insurance Trust and Carolc S. Seelen forthe .1 cfs of the Stapleton Brothers Ditch Enlargement and Water Right described in paragraph I (b) above, for all assessments and other amounts required to be paid to the Basalt Water Conservancy District pursuant to the Water Allotment Contract described in paragraph I (c) above, and all amounts required to be paid for well permits and substitute water supply plans to enable use ofthe Customer Water Rights. Customers shall be solely responsible for the cost of constructing, cleaning, operating, maintaining, repairing and replacing the wells, Bishop pond, and all irrigation lines, sprinklers, and other structures and facilities which enable use of the raw water on the Subject Property. 5. below. Term. This Agreement shall continue until terminated as provided in paragraph 14 6. Payment. Customers shall pay an annual charge for the delivery of raw water, based on the City's raw water delivery rates in effect at the time the water is delivered. The charge shall be billed to Customers by June 30 of each year in advance of the upcoming irrigation season. The charge shall be a flat fee based on the square footage or irrigated acreage. Payment shall be made to the City within 60 days of the billing date. Customers shall not be charged any additional lease payments. 7. Service Subiect to the Citv Charter. Codes. Rules. Regulations and Policies. All water service provided hereunder shall be subject to all applicable provisions of the Charter ofthe City of Aspen and the Aspen Municipal Code, as well as all applicable standards, rules, policies or regulations of the City now in effect or as may be hereafter adopted, including but not limited to those provisions ofthe Code applicable to City residents as set forth in Chapter 8.40 and Chapter 25, provided, however that no such ordinances, rules, policies or regulations shall be applied so as to impose more restrictive curtailment obligations on Customers or their successors than are provided for in paragraphs 2, 9 and 14 of this Raw Watcr Agreement. 4 Filla! 103106 8. No Right to Reusc or Successively Usc Water. Except as herein provided, Customers shall have no right to reuse or make a succession of uses of the water providcd pursuant to this Raw Watcr Agreement. Customcrs agree that they do not, by this Raw Water Agreement, acquire any interest in water rights owned or controlled by the City, and that any claims thcy may have with respect to the delivery of water hereundcr are strictly contractual rights as provided in this Raw Water Agreement. 9. Suspension of Water Delivery. The City shall not be liable for failure to deliver water by reason of any unanticipated failure of the wells or other delivery infrastructure, or if water cannot be lawfully delivered in accordance with the decree in Case No. 2002CW42. As stated in paragraph 2 above, the City may also impose restrictions on raw water deliveries pursuant to this Raw Water Agreement, in accordance with raw water curtailment policies, which policies shall be no more restrictive on deliveries hereunder to the Subject Property than City curtailment ordinances or policies applicable to outdoor treated water uses within the City. The City may also suspend raw water dclivcries pursuant to this Raw Water Agreement following notice of default and failure to cure as provided in paragraph 14 below. 10. Indemnification. As partial consideration for this Agreement, Customers agree to indemnify the City and hold it, its officials, agents and employees, harmless from any and all losses, injuries or claims of any kind whatsoevcr, including all costs of defense and attorneys fees, that may arise from Customers' use ofthe raw water leased hereunder, or Customers' operation, maintenance, repair, rehabilitation or replacement of structures or facilities belonging to or controlled by Customcrs or their agents, employees, or contractors, on or off of the Subject Property. At no time shall anything contained within this Raw Water Agreement be considered or interpreted to waive or diminish, in whole or in part, the rights or limitations bestowed upon the City by the Colorado Governmental Immunity Act, C.R.S. 924-10-101, et Seq., as amended, or any other law, nor shall the indemnification obligation hereunder cover claims or losses or damages for which the Citywould not be liable, should this indemnification provision not have been in existence. 11. Water Quality. Customers acknowledge that the raw water that is subject to this Raw Water Agreement is untreated water, and that the City makes no guarantees or representations conceming the quality of the water provided, or its fitness for the purposes for which it is used, or for any particular purpose. 12. Disconnection oflrrigation System from Treated Water System; Cross-Connection Prevention. The irrigation system on the Subject Property has been disconnected from the City's treated water distribution system. From and after April 1, 2006, no treated water has been or will be used for irrigation or other outdoor uses on the Subject Property except as herein specifically provided. The irrigation system has been connected to the Bishop Well No. I, the Gardner/Lee Well No. I, and/or the Bishop Pond. Customers will be responsible for assuring that there are no cross connections to the City water system at any time. The City shall have the right to make reasonable 5 Final 103106 requcsts for assurance that no cross-connection exists, and such assurances shall be provided at Customers' cost. The City will not seek to rCCOVer from Customers any rcvcnUeS foregone as a result of past trcatcd water irrigation of the Subject Property that exceeded the amount authorized in the original Watcr Service Agreement prior to its amendment. 13. Obligations Consistent with Law. The parties agree, intend and undcrstand that the obligations imposed by this Raw Water Agrcement are only such as are consistcnt with thc state and federal law. Thc parties further agree that if any provision of this Raw Water Agreement becomes, in its pcrformancc, inconsistent with state or federal law or is declared invalid, the parties shall either tcrminatc this Raw Water Agreement and the Water Service Agreement or in good faith negotiate to modify thc Raw Water Agreement so as to makc it consistent with the state or federal law, as the casc may be. 14. Default. If either thc City or Customers default in the performance of their obligations hereunder, the non-defaulting party or parties shall have available all remedies at law or equity, including the right to specific performance. The following provisions shall apply: a. Default by Customers. (I) Non-Payment. If Customers, or any of them, fail to make any payment hereunder when due, the City shall give notice of non- payment. Customers shall have fifteen (15) days from the date of notice within which to make payment. Thereafter, the City may suspend water deliveries hereunder until payment of all outstanding balances (including any applicable interest and late fee) has been received, and the City may, but need not, exercise any other rights available to it pursuant to the Code, or at law or equity, or pursuant to this Agreement, including but not limited to the right to place a lien on the Subject Property, the right to foreclose such lien, and/or the right to bring an action for damages for breach of this Agreement. (2) Other Breaches. If the Customers, or any of them, fail to comply with any other obligation pursuant to this Agreement, the City shall give notice of default. Such default must be cured within 45 days of the date of notice of default, provided, however, if such default cannot reasonably be cured within the initial 45-day period, an additional period, not to exceed 45 days shall be allowed for cure of the default. If a default as to which notice is given is not cured within the applicable period for cure, the City may suspcnd water deliveries 6 Final] 03] 06 hereunder until the default is curcd, and the City may, but need not, cxcrcisc any other rights available to it pursuant to the Code, or at law or equity, or pursuant to this Agreement, including but not limited to the right to bring an action for specific performance of this Agree- ment and/or an action for damages for breach of this Agreement. (3) Effect of Court finding of Breach. Ifa final court detennination is made that Customers or any of them have breached this Raw Water Agreement, such breach wi 11 also be a breach of the Water Service Agreement, and the City shall have the rcmedies available to it for breach of the Water Service Agrecment, including suspension of treated water service and tennination of the Water Service Agreement as therein provided. In addition, upon a final court detennination that Customers or any of them have breached this Raw Water Agreement, the City may tenninate this Agreement as provided in paragraph 15(c). b. Default by Citv. If the City fails to comply with any obligation pursuant to this Agreement, the Customers shall give notice of default. Such default must be cured within 45 days of the date of notice of default, provided, however, if such default cannot reasonably be curcd within the initial 45-day period, an additional period, not to exceed 45 days shall be allowed for cure of the default. Ifa default as to which notice is given is not cured within the applicable period for cure, the Customers may, but need not, exercise any other rights available to them at law or equity, including but not limited to the right to bring an action for specific perfonnance of this Agreement or an action for damages for breach of this Agreement. 15. Tennination. This Raw Water Agreement shall continue until tenninated. It may be tenninated in the following manner: a. Termination bv Agreement. This Raw Water Agreement may be tenninated by mutual written agreement of all parties upon tenns and conditions acceptable to all parties. b. Tennination at Customers' Election. If Customers wish to tenninate this Raw Water Agreement and the Water Service Agreement (both of which must be tenninated if termination is elected pursuant to this paragraph 15 . b), they shall provide written notice of tennination, signed by all Customers or their successors in interest, to the City at least 30 days prior to tennination. Upon expiration of said 3D-day notice period, Customers shall, at Customers' expense, promptly take all actions required by the City to disconnect the Subject Property from thc City trcatcd water distribution system. Upon such disconnection, the City shall reconvey the 7 Fillal103106 Customer Water Rights (but not the Holden Ditch) to Customers by quitclaim deed, at no charge, and the City shall have no further obligation to provide raw or treated water service to the Subject Property. Customers shall be rcsponsible for all costs and fees associated with such disconnection and all water charges owing as of the date of termination. c. Termination as a Result of Customers' Default. If the City obtains a final court determination that Customers or any of them have breached any provision of this Raw Water Agreement, thc City may give Notice of Termination, and this Agreement shall tcrminate seven days from the date of such notice. d. Termination Upon Termination of Water Servicc Agrcement. This Raw Water Agreement shall terminate automatically upon termination of the Watcr Service Agreement without thc nccd for any Notice of Termination by the City. e' Termination as a Result of City's Default. If the Customers obtain a final court determination that the City has breached any provision of this Raw Water Agreement, the Customers may give Notice of Termination, and this Raw Water Agreement shall terminate seven days from the date of such notice. f. Reconveyance upon Termination. Upon termination, thc City shall reconvey thc Customer Water Rights (but not the Holden Ditch) to Customers by quitclaim deed, at no charge, without intervening impairment, loss or encumbrance caused by the City, and the City shall have no further obligation to provide raw water service to the Subject Property. Customers shall be responsible for all raw water charges owing as of the date of disconnection. 16. No Waiver or Rights or Remedies. Failure of a party hereto to exercise any right or remedy hereunder shall not be deemed a waiver of any such right or remedy and shall not affect the right of such party to exercise at some future time said right or remedy or any other right or remedy it may have hereunder. 17. Notice. All notices required to be given hereunder shall be in writing, and shall be deemed given upon personal delivery or upon deposit in the United States mail, certified mail, return receipt requested, postage prepaid, properly addressed to the party to whom directed at its address shown below or at such other address as may be given by notice pursuant to this paragraph: City of Aspen Water Director, City of Aspen 130 South Galena Street Aspcn, CO 81611 8 Final 103106 with copy to City Attorney City of Aspen 130 South Galcna Strcct Aspen, CO 81611 Customers: Archer Bishop Jr. and Sandra Bishop P.O. Box 11146 Knoxville, TN 37939 J. Alston Gardner and Barbara Lec 3155 Roswell Road, Suite 330 Atlanta, GA 30305 and and 39600 Highway 82 Aspen, CO 81611 39590 State Highway 82 Aspen, CO 81611 with copy to with copy to Patrick, Miller & Kropf, P.c. Attn: Paul L. Noto, Esq. 730 E. Durant Avenue, Suite 200 Aspen, CO 81611 Patrick, Miller & Kropf, P.c. Attn: Paul L. Noto, Esq. 730 E. Durant Avenue, Suite 200 Aspen, CO 81611 18. Force Majeure. No party shall be held liable for failure to perform hereunder due to wars, strikes, acts of God, natural disasters, or other similar occurrences outside the control of such party. 19. Assignment. This Agreement may not be assigned without the written consent ofthe other party hereto, which consent shall not be unreasonably withheld. Notwithstanding the foregoing sentence, the rights and obligations of Customers hereunder will be deemed assigned and transferred to Customers' successors-in-interest to the Subject Property. 20. Entire Agreement. This Raw Water Agreement together with the Water Service Agreement constitutes the total integrated agreement among the parties regarding the subject matter hereof, and supersedes and controls all other prior and contemporaneous written and oral agreements and representations of the parties. 9 FiIJal103106 21. Authority of Signatories. By signing this Raw Water Agreement, thc parties acknowledge and rcprcscnt to one another that all proccdures necessary to validly contract and exccutc this Agreemcnt havc becn performed and that the pcrsons signing for each party havc bccn duly authorized to do so. 22. lnteroretation of Agreement. Neither thc titles to this Raw Water Agreement and its paragraphs, nor the recitals appearing prior to paragraph I of this Raw Water Agreement shall be used to alter the meaning ofthis Raw Water Agreement, and in the event ofa conflict, the terms and conditions of the numbered paragraphs shall govern. 23. Binding Agreement: Recording: Covenant. This Raw Water Agreement is binding upon the parties hereto, their successors and assigns. This Raw Water Agrcement shall be promptly rccordcd by thc City, and shall constitute a covenant running with the Subject Property. 24. Litigation. In the event either party is required to take legal action to enforce its rights under this Raw Water Agreement, the prevailing party shall be entitled to recover its reasonable attorney fees and costs, including expert witness fees. The parties agree that the forum for any such litigation shall be the Pitkin County District Court or County Court. 25. Counterparts. This Agreement may be signed using counterpart signature pages, with the same force and effect as if all parties signed on the same signature page. IN WITNESS WHEREOF, the parties hereto set their hands on the date and year above first written. Attest: CITY OF ASPEN By: CUSTOMERS Q;~J~: joint tenancy of Lot 2, Golf Course Properties Lot Split vt/7ch~/ .407htY7 Sandra Bishop as owner in joint tenancy of Lot 2, Golf Course Properties Lot Split 10 Final103 6 ~ G.o'" owocr ill mt tenancy of Lot I, Golf Course Properties Lot Split erm I, Golf Course Propcrtics STATE OF '-rf',,"/'0u,,-~~ ) ) ) COUNTY OF /Lt.J(j)( , SUBSCRIBED AND SWORN to before me this / y~ day of 71iNr;,,-'f',uL- ,2006 by Archer Bishop Jr. and Sandra Bishop, who pcrsonally appcarcd before me. WITNESS my hand and official seal. )yo My commission expires: -7&rv-~A~f!,c-, 15,2- 06 8' STATE OF hlM,.v;!v COUNTY OF ~ ) ) ) SUBSCRIBED AND SWORN to before me this 10TH dayofj-JdIIlrn.be..u, 2006 by J. Alston Gardner and Barbara Lee, who personally appeared before me. WITNESS my hand and official seal. My commission expires: ~A,ru.. 2&, 2-010 ~ ~: .G.~.A?o ,r_'l'.' '.~"", ~l/~ 1.:5J. "', ~ ~.' O~4 ~ . , ~ J.- Notary Public ~9\iIJ .Lt. 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