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HomeMy WebLinkAboutagenda.council.worksession.20180626 CITY COUNCIL WORK SESSION June 26, 2018 4:00 PM, City Council Chambers MEETING AGENDA I. Parking Municipal Code changes & updates (follow-up) II. Marolt Seasonal Lease with MAA P1 Page 1 MEMORANDUM TO: Mayor and City Council FROM: Mitch Osur, Director of Parking and Downtown Services THRU: R. Barry Crook, Assistant City Manager DATE OF MEMO: June 18, 2018 MEETING DATE: June 26, 2018 RE: Municipal Code Changes REQUEST OF COUNCIL: Staff requests Council direction on: · Updating the Municipal Code in a few parking provision. · Plans for parking ticket fines. · Pricing for Lodge passes. PREVIOUS COUNCIL ACTION: Reviewed ideas on Municipal Codes changes with council on April 2, 2108 and have made modifications after input from Council. BACKGROUND: The City of Aspen Parking Services Department continues to look at opportunities to fine tune the parking and congestion issues in the city. Our goals are: 1. To reduce car traffic coming into Aspen each day. 2. To cut down on congestion in town with cars searching for a parking space. 3. To have no more than 90% parking occupancy on the streets in the core of Aspen. 4. To increase transit, carpool, pedestrian and bicycle trips and to encourage parking by those that must drive in the parking garage, at the Brush Creek Intercept Lot or in the residential zones, instead of the in the commercial core. We are also concerned about the quality of life, aesthetics and safety on the streets in the City of Aspen. DISCUSSION: Here are specific code changes the City of Aspen Parking Services Department is looking for direction from Council on. Code changes to Title 24 of the Municipal Code: P2 I. Page 2 Unattached Vehicles Add: Unattached non-motorized vehicles cannot be parked on any city street or alley. Non-motorized vehicles must remain attached to a vehicle. Each resident will be able to purchase three (3) passes a year good for three (3) days each. Impoundment of Motor Vehicles Change: When the records of the city indicate that a parking, standing or stopping violation citation has been issued on a vehicle by the city has not been paid or otherwise legally disposed of for more than thirty (30) days from the date of issuance of such citation. Residential Permits Add: On renewal dates for 2019 there will be a limit of four (4) permits and one (1) guest permit per resident. On renewal dates for 2020 there will be a limit of three (3) permits and one (1) guest permit per resident. Oversized Vehicles Add: An oversized vehicle will not be eligible for a Residential Parking pass or Guest pass. Each resident will be able to purchase three (3) passes a year good for three (3) days each Oversized vehicle means any motorized vehicle that exceeds any of the following: · 24 feet in length · 8 feet in width · 8 feet in height · Having a manufacture’s gross weight rating of 10,000 pounds or more Two Hour Free Parking Add: Where two (2) hour free parking is posted a vehicle is only allowed one visit per day during enforcement hours. Electric Vehicle Parking Incentive Program Add: There is hereby created an Electric Vehicle Parking Program within the City to encourage the ownership and use of vehicles with no tailpipe emissions in the City. EV’s and NEV’s will be given the privilege to park in the residential zones for FREE in 2019. Change: (a) For purposes of this Chapter, the following term shall have the following meaning: P3 I. Page 3 Electric vehicles, also known as all-electric vehicles or EVs, shall mean a vehicle that is powered by electricity only and is propelled by an electric motor that uses a rechargeable battery. These vehicles have zero tailpipe emissions. This definition is in accordance with the U.S. Department of Energy’s classification (https://www.fueleconomy.gov/feg/evtech.shtml). Neighborhood electric vehicles, also known as NEVs, shall mean a vehicle that is powered by electricity only and is propelled by an electric motor that uses a rechargeable battery. Like an EV, these vehicles have zero tailpipe emissions. However, unlike an EV, NEVs are meant for short range driving and are not for use on roads or highways with speed limits over 35 mph. NEVs should comply with U.S. Department of Energy’s classifications (https://energy.gov/sites/prod/files/2015/04/f21/nev_tech_spec.pdf). NEVs will be treated equally and consistently with EVs in the City of Aspen EV Parking Incentive Program. (b) Any person who is the owner of an EV or NEV may apply for an Aspen Electric Vehicle Parking Program Permit expiring on 12-31-2019. The Electric Vehicle Parking Program Permit shall allow all-electric vehicles (EVs and NEVs) to park in any Residential Permit Zone. Vehicles that display a valid Electric Vehicle Parking Program Permit will be exempt from the two-hour parking restriction in Residential Permit Zones. Plan for fines of parking tickets: The plan is to raise all parking ticket fines $10 except for the following: Ticket Violation Current Fine Recommended Fine Overtime RPP $40.00 $40.00 False Altered $100.00 $250.00 Fraudulent Parking $100.00 $250.00 Fire Zone Only $100.00 $150.00 Handicap Zone $100.00 $250.00 Lodge Permits Lodges today are able to purchase parking passes for $3 for up to 5 days that are good in the residential zones. The regular prices for parking in the residential zones is $8 a day. We will be switching to virtual permits before the winter of 2019. We have started a test with a few of the property managers that has gone extremely well. Looking for direction on what price is acceptable to charge per day for a lodge permit. P4 I. Page 4 FINANCIAL/BUDGET IMPACTS: None at this time ENVIRONMENTAL IMPACTSRECOMMENDED ACTION: Parking management and pricing are integral elements of the City’s overall Transportation Implementation plan, designed as a system of incentives and disincentives to encourage the use of alternatives forms of transportation, thereby reducing congestion, improving air quality and reducing greenhouse gas emissions in Aspen. ALTERNATIVES: City Council can decide to accept or deny any of the changes to the Municipal Code. On the NEV code, staff understands that here has been some discussion about NEV’s losing the privilege to park in the Downtown Core for FREE. Staff believes that to best serve Aspen’s transportation goals of reducing congestion and discouraging vehicle trips, free parking in the Downtown Core should be eliminated. Staff also believes that EV’s and NEV’s should be treated the same. If Council believes that NEV’s should still get a reward for Downtown Core parking, we are recommending a permit fee of $500 to park in the Downtown Core for 2019. PROPOSED MOTION: None at this time. CITY MANAGER COMMENTS: P5 I. 1 ) MAROLT RANCH LEASE AGREEMENT THIS LEASE AGREEMENT is made this 1st day of September, 2018, by and between the City of Aspen, a home rule municipality incorporated under the laws of the State of Colorado, (hereinafter referred to as “City” or “Landlord”) and the MUSIC ASSOCIATES OF ASPEN, INC., a Colorado non-profit corporation (hereinafter referred to as the “MAA” or the “Tenant”). WITNESSETH WHEREAS, the City is the owner of real property and all of the improvements thereon, known as Marolt Ranch, located in Pitkin County, Colorado and described on Exhibit A attached hereto and incorporated herein by this reference (“Marolt Ranch”), which property consists of approximately ___ residential units, together with, but not limited to, a cafeteria, parking, roadway, walkways, landscaping and certain other residential facilities; and, WHEREAS, the MAA has a right to and does occupy the Marolt Ranch pursuant to a Lease and Agreement dated May 15, 1990, by and between the City, the Aspen/Pitkin Housing Authority and the MAA for a period from June 1st through August 31st of each year through August 31, 2019: and, WHEREAS, within the Marolt Ranch there is a cafeteria and restaurant facility, complete with seating and dining area, and kitchen, which has been the subject of a lease agreement between the Aspen/Pitkin Housing Authority and the MAA, dated June 1, 1995; and, WHEREAS, the parties hereto wish to extend the tenancy on the premises beyond the term of the current Lease and Agreement, for a period encompassing the useful life of the premises and including within this Lease Agreement a lease of the cafeteria and restaurant facility on the terms and conditions set forth herein. NOW, THEREFORE, for and in consideration of the payments to be made hereunder, and such further consideration of the terms, conditions, covenants and mutual promises contained herein, the parties hereto agree as follows: 1. Lease of Premises - Term. City hereby leases to Tenant the Marolt Ranch, consisting of_94_ residential units, the cafeteria and restaurant facility therein and the 11 music practice room facilities, parking, roadway, walkways and landscaping located in the City of Aspen, Colorado, (the "Premises") for the period from June 1st through August 31st of each year commencing June 1, 2019 and terminating August 31, 2029, unless extended or sooner terminated as provided herein, subject to the terms and conditions of this Lease Agreement, and further subject P6 II. 2 to the Exhibit(s) attached hereto and by this reference incorporated herein. Upon the execution of this agreement, the Lease and Agreement dated May 15, 1990 shall be terminated to the extent that Lease and Agreement addresses and concerns the lease of the Premises. The lease does not include five (5) units currently rented long term or the unit currently used as an office by APCHA. Terms unrelated to the lease of the Premises to the extent they remain effective pursuant to the terms of that agreement shall remain in full force and effect. If there is any conflict between the remaining obligations and responsibilities of the 1990 Agreement and this Lease Agreement, this Lease Agreement shall prevail. The term of this lease may be extended until August 31, 2034 upon the written notice provided to the City no later than one year prior to the end of the lease. 2. Use of Premises. a. Residential Units. The Premises consisting of residential units shall be used by Tenant to provide housing to students, staff, faculty or other participants in its programs. These individuals shall be referred to herein as “Residential Occupants.” No other individuals shall be allowed to occupy the residential premises without the prior written consent of the City. b. Cafeteria and restaurant food service area shall be used to provide residents of Marolt Ranch as well as any and all other customers desiring food services, such food services as deemed appropriate by the Tenant. c. In no event shall Tenant use or operate the lease premises for any other purpose without Landlord’s prior written consent, which consent may be withheld in Landlord’s sole discretion. d. Tenant shall comply promptly with all applicable statutes, ordinances, rules, regulations, orders and requirements relating to the use of the lease premises including any rules or regulations imposed by the City of Aspen. e. Tenant shall not use nor permit the use of the lease premises in any manner that will tend to create a nuisance or tend to disturb other tenants or occupants of the improvements or adjacent properties thereto. It is understood that students will practice their instruments in their units, but will abide by rules regarding quiet hours. f. Tenant and Residential Occupants shall not permit the use of the Premises, or any part of the Premises, to be used for any business purposes or unlawful purpose of any sort. 3. Rent. a. The rent for the Premises for the initial three-month period commencing June 1, 2019 shall be $457,968 and shall be payable in advance in each year of the lease term. The Landlord shall by the 1St of each month for which rent is due, send to the tenant an P7 II. 3 invoice for the rental amount that is due. Tenant shall deliver each monthly rental amount payable to “The City of Aspen” at the address set forth in this Lease Agreement. b. The Tenant hereby acknowledges that late payment by Tenant to Landlord of rent or other sums due will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which shall be difficult to ascertain. Accordingly, if any bona fide installment of rent or any other sum due from Tenant shall not be received by Landlord or Landlord's designee on or the fifteenth (15th) of the month after payment is due, Tenant shall pay Landlord a late charge of five percent (5%) on such overdue amount. In addition, any such payment shall incur interest at the rate of eighteen percent (18%) per annum from the date it was due until paid. Interest shall not be incurred if payment is made within ten days of the date due. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any other rights and remedies granted hereunder. 4. Cafeteria. Tenant intends to make certain improvements to the cafeteria (see section 11). This will include installation of kitchen appliances which are the property of the tenant. It is understood that: a. Kitchen appliances will remain in the cafeteria year-round even though the annual rental period is only three (3) months. b. Repair, maintenance, and upkeep of all kitchen appliances is the responsibility of tenant. c. In the event that landlord enters into an agreement with a third party to rent the cafeteria from September through May (or any portion thereof), tenant agrees to rent the kitchen appliances to the third party at reasonable terms in order to further the landlord’s rental income goals., 5. Utilities. Tenant shall pay all charges for water, sewer, trash removal, extermination and pest control. Tenant shall pay all charges for telephone, internet, or cable TV charges (for which Tenant shall separately contract), gas, electricity, and any other utility or maintenance charges used by the Tenant in or about the lease the premises during the term of this Lease. Landlord shall bill monthly for all such charges for the lease premises and Tenant shall pay such billed amounts within fifteen (15) days of receipt of such bills, as additional rent. 6. Occupancy of Lease Premises. Tenant shall be entitled to occupy ·the lease premises only for the three-month period from June 1st through August 31st of each year of the lease. The Landlord retains the right to lease the premises for the remaining nine months of each year of this lease, or any portion thereof, upon terms and conditions acceptable to Landlord. However, no such lease shall preclude or interfere with Tenant’s occupancy of the lease premises from June 1st through August 31st of each year of the lease. 7. Pets on Premises. No occupant of the residential premises shall be permitted to house any dogs or cats, unless the animal is trained and certified to assist a handicapped or disabled P8 II. 4 individual or is a qualified and approved emotional support animal as recommended by a medical professional.. Other animals or birds of any kind shall not be taken into or kept on the Premises without written consent of City which may be granted or withheld in City’s sole discretion. Tenant shall be liable for the cost of repair of the damages resulting from or inflicted by an animal harbored or kept on the Premises, whether or not permission has been granted by the City. At a minimum, this shall entail the professional cleaning of all the carpets upon the removal of the pet or the termination of the lease, whichever first occurs. Tenant shall be responsible for the presence of any animals in violation of this rule (this includes all animals that may be present, whether owned by an occupant, a friend or relative of an occupant, or some other third-party present on occupant’s unit), and will be assessed a fine of $50.00 for every violation of this rule. In addition, the presence of any animals in violation of this rule is considered a violation of the lease and may result in the termination or non-renewal of lease. 8. Condition of the Premises. The Tenant has examined the lease premises and has entered into this Lease without any representation on the part of the Landlord as to the condition thereof. Tenant is relying upon its own inquiry as to applicable zoning and other land use regulations, if any, governing the permitted uses of the lease premises. Tenant shall take good care of the lease premises and shall maintain the lease premises in good condition and state of repair, and at the end or other expiration of the term hereof shall deliver up the lease premises in good order and condition, wear and tear from reasonable use thereof and damage from the elements not resulting from the neglect or fault of the Tenant, excepted. The Tenant shall neither encumber nor obstruct the sidewalks, driveways, yards, entrances, hallways and stairs, but shall keep and maintain the same in a clean condition, free from debris, trash, refuse, snow and ice. In case of destruction of, or any damage to the glass in the lease premises, or the destruction of, or damage of any kind whatsoever to the lease premises, caused by the carelessness, negligence or improper conduct on the part of the Tenant or the Tenant's agents, employees, guests, licenses, invitees, subtenants or assignees; the Tenant shall repair the said damage or replace or restore any destroyed parts of the lease premises, as speedily as possible, at the Tenant’s own cost and expense. In connection herewith, on or about September 1of each year during the term of this lease, representatives of the Landlord and Tenant shall meet at the lease premises and perform a walk-through inspection to confirm that the lease premises are being delivered to Landlord in the same condition as when Tenant took possession on June 1st of that year, reasonable wear and tear excepted. In this regard, the parties acknowledge that at the end of each period of Tenant's occupancy, Tenant shall cause to be made a deep cleaning of the food service area within the lease premises. Landlord and Tenant shall also create a “punch list” describing any repairs or additional maintenance necessitated by damages or extraordinary use arising from Tenant's activities not covered by insurance. Tenant shall promptly cause such additional repairs and maintenance to be performed in order to restore the lease premises to its condition immediately prior to Tenant s taking occupancy that year, reasonable wear and tear excepted. P9 II. 5 On or about June 1st of each year during the term of this lease, representatives of the Landlord and Tenant shall meet at the lease premises and perform a walk-through inspection to confirm that the lease premises are being delivered to Tenant in the same condition as when Tenant delivered the lease premises to Landlord on September 1st of the previous year, reasonable wear and tear excepted. To the extent any use of the lease premises (including the food service equipment) is made during the period of Landlord’s possession of the lease premises, Landlord shall cause appropriate cleaning to be made prior to delivering the lease premises to the Tenant. 9. Entry and Inspection. City may at reasonable times and upon twenty-four (24) hours notice enter into the Premises for purposes of inspection and repair. In addition, City may at reasonable times and upon reasonable notice show the Premises to prospective tenants at any time during the term hereof. This right of inspection shall not be construed to create any obligation upon City for the maintenance of Premises. In the event actual notice is not obtained, notice, in either case, shall be deemed to be effective and reasonable twenty-four (24) hours after posting written notice on the front door of the Premises. 10. Assignment and Subletting. Tenant and Residential Occupants shall not lease, sublease, assign, transfer, mortgage, pledge or otherwise in any way alienate, hypothecate, encumber or suffer all or any part of the Premises or this lease except as contemplated by this Lease Agreement without the prior written consent of City which consent may be withheld or granted in City’s sole, absolute and unrestricted discretion. 11. Alterations. Tenant anticipates improvements to be made to the cafeteria and restaurant area beginning in September, 2018 and to finish prior to June 12, 2019. Prior to submission of any application for a building permit necessary for the modification of the premises, Tenant shall provide to Landlord a full set of plans for such renovation or remodeling. The Landlord shall have fourteen (14) days to review and approve such plans. In the event the City does not approve the plans for the remodel, the Tenant may not proceed with such remodeling effort. If Landlord does not provide written notice of objection to the proposed plans for renovation within the time allowed, the plans shall be deemed approved. All proposed renovations and remodeling must receive all necessary permits and land use approvals prior to commencement of construction. Any alterations, additions or improvements, when made or attached to the Premises, shall belong to and become the property of the City and shall be surrendered upon the expiration or sooner termination of this lease Any alterations, improvement or repairs shall be made in a satisfactory and workmanlike manner. Tenant shall not permit any lien or other encumbrance to be filed against the Premises in connection therewith, and shall indemnify the city against such liens and encumbrances. Residential Occupants shall not make any alterations, additions, improvements or repairs to the Premises (other than ordinary maintenance) without the prior written consent of City. 12. Residential Occupant’s and Tenant’s Property Remaining on Premises. In the event that after the yearly term of this lease expires, i.e., August 31st, or the lease is otherwise P10 II. 6 terminated, or the Premises are abandoned hereunder, and City enters into possession of the Premises and there is within the Premises furniture, furnishings, fixtures, or other personal property of a residential occupant or the Tenant, the City shall have the right and option without liability to the residential occupant or tenant: 1) to store such property in a warehouse or other storage space provided by City or others at the reasonable storage expense of the residential occupant or Tenant; or 2) to cause such property to be sold at public or private sale with or without notice to the residential occupant or Tenant, at which sale the City may be purchaser, and to apply the proceeds of such sale first to the reasonable incurred expenses of collection or sale and thereafter on any indebtedness due by the Tenant to the City, with any excess over the amounts required for such purposes payable to the residential occupant or Tenant, or (3) in the discretion of the City should such property be deemed by it of small value, said property may be discarded or destroyed. 13. Storage Areas. Tenant acknowledges that Tenant's rental of the Premises does not include any right to or possession of areas on the Premises for storage other than as are specifically assigned to the Premises. The City may from time to time allow Residential Occupants or Tenant to store items in other areas of the Premises subject to terms and conditions to be imposed by the city. In connection with the use by Tenant of any storage area(s) associated with Tenant’s rental of the premises, Tenant hereby agrees that the City shall not be responsible or liable for any theft, loss, damage, or claim incurred by Tenant to any property of Tenant’s located in any storage area. The use of any storage area by Tenant shall be at Tenant’s sole risk and Tenant hereby indemnifies and holds the city harmless from and against any and all claims for such theft, loss, damage or claim incurred by Tenant as a result of Tenant’s use of any storage area. Any items stored without the consent of the City may be removed and disposed of as the City sees fit and without any obligation whatsoever to Tenant. In no event shall Tenant store any flammable, toxic or hazardous materials in any storage area provided to Tenant by Landlord. Any such storage of flammable, toxic or hazardous materials shall be deemed to be a default under this Lease Agreement. 14. Personal and Real Property Taxes. Tenant shall pay, as additional rent hereunder, all personal property taxes assessed against the personal property used by Tenant and located on the on the lease premises for occupancy period during the term of this lease. Likewise, Tenant shall be responsible for any and all sales, use, withholding and other taxes assessed against the lease premises for Tenant’s business operation therein. The real estate taxes for the premises shall be the responsibility of the Landlord. 15. Reimbursement. If Tenant or Residential Occupants shall fail to perform an obligation of this lease, City may, if City so elects, perform such obligations and charge the expense thereof to Tenant as additional rent hereunder. 16. Severable. If any provision of this lease shall be declared invalid or unenforceable, the remainder of the lease shall continue in full force and effect. P11 II. 7 17. Attorneys’ Fees. Tenant shall pay upon demand City’s costs and expenses, including reasonable attorney's fees incurred in order to enforce any of the provisions of this lease or any action or proceeding instituted by reason of Tenant's default hereunder, irrespective of whether an act is commenced to enforce any provision of this lease. 18. Quiet Enjoyment. Subject to the terms of this lease, and the faithful performance of Tenant's obligations hereunder, Tenant shall have quiet enjoyment of the Premises during the term hereof, provided however, that City shall not be responsible for any disturbances caused to Tenant as a result of actions not directly attributable to City, including without limitation, maintenance, and repair, traffic noises, construction noises and other disturbances. 19. Casualty. In case of fire or other casualty, the Tenant shall give immediate notice to City. If the leased Premises are not livable as a result of fire, the elements or by any other cause not resulting from Tenants' neglect or default, the obligation to pay rent shall cease until the demised Premises shall be substantially repaired, whereupon the obligation to pay rent shall resume to the same extent and at the same rate as if the damage had not occurred. However, the obligation to pay rent shall not cease nor shall any reduction in the rental payment be made during the period that Tenant or Residential Occupants continue to reside in the Premises. In no event, however, shall the provisions of this clause become effective or be applicable if fire or other casualty or damage shall be the result of carelessness, negligence or improper licensees, invitees, subtenants, assignees or successors. In such case, the Tenant's liability for the payment of rent and the performance of all the covenants and conditions and terms hereof on the Tenant's part to be performed shall continue and the Tenant shall be liable to the City for the damage and loss suffered by the City, including all repairs and rebuilding expenses. City shall not be responsible for any loss or damage of Tenant’s or Residential Occupants’ personal property. 20. Default. If there shall be a default in the performance of the payment of rent or any part thereof for more than ten (10) days after written notice of such default from Landlord or Landlord's agent to Tenant this lease and all rights of Tenant hereunder shall terminate. If there shall be a delinquency by Tenant in the performance of any other covenant, agreement, condition, rule or regulation herein contained or hereafter established for more than three (3) days after written notice of such default from Landlord to Tenant, Landlord, or Landlord's agent, at any time thereafter may terminate this Lease by providing a notice to quit to Tenant, which notice to quit shall be effective upon delivery to Tenant or upon posting on the front door of the Premises. In that case, this lease shall terminate and all rights of Tenant hereunder shall terminate. The abandonment of the premises by the tenant as defined in C.R.S. § 38-12-501, shall constitute a default under this lease and all rights of tenant shall there upon terminate. P12 II. 8 Prior to expiration or termination, landlord may inspect the premises as provided in paragraph 11.0 above to determine compliance by tenant with the terms of this agreement, including but not limited to condition of premises. Upon termination of this Lease, pursuant to the preceding subparagraph or otherwise, Tenant shall peacefully surrender the leased Premises to Landlord, and Landlord may, upon or at any time after such termination, without further notice, re-enter the leased Premises and repossess it by force, summary proceedings, ejectment, or otherwise, and may dispossess Tenant and remove Tenant and all other persons and property from the leased Premises. Tenant shall be responsible for any and all costs and attorney's fees incurred by Landlord in enforcing the provisions contained in this paragraph. At any time after such termination, Landlord may re-let the leased Premises or any part thereof, in the name of the Landlord or otherwise for such term (which may be greater or less than the period which would otherwise have constituted the balance of the term of this Lease) and on such conditions as Landlord, at his discretion, may determine, and may collect and receive the rents therefore. Landlord shall in no way be responsible for or liable for any failure to re-let the leased Premises or any part thereof, or for any failure to collect any rent due upon such re-letting. No termination of this Lease shall relieve Tenant of Tenant's liability and obligations under this Lease, and such liability and obligations shall survive any such termination. In the event of any such termination, whether or not the leased Premises or any part thereof shall have been re-let, Tenant shall pay to Landlord the rent required to be paid by Tenant up to the time of such termination, and thereafter Tenant, until the end of what would have been the term of this Lease in the absence of such termination, shall be liable to Landlord for, and shall pay to Landlord, as and for liquidated and agreed damages for Tenants' default: a. The equivalent of the amount of rent which would be payable under this Lease by Tenant if this Lease were still in full force and effect, including charges for all utilities and services as provided in this agreement. b. The net proceeds of any re-letting effected pursuant to the provisions of the preceding subparagraph, after deducting all of Landlord's reasonable expenses in connection with such re-letting, including but not limited to all repossession costs, brokerage commissions, legal expenses, attorneys' fees and expenses of preparation for such re- letting. Landlord may also, at its option, and without being liable to Tenant for any damage therefore, remove and store at Tenants' cost, all personal property and effects of Tenant upon the property, without responsibility for loss or damage, so long as Landlord uses reasonable care in the removal thereof. 21. Expiration. On August 31st of each year of the lease term or upon termination of this Lease, pursuant to the preceding subparagraphs or otherwise, Tenant and Residential Occupants P13 II. 9 shall peacefully surrender the leased Premises to the City, and the City may, upon or at any time after such termination, without further notice, re-enter the leased Premises and repossess it by force, summary proceedings, ejectment, or otherwise, and may dispossess Tenant or Residential Occupants and remove Tenant or Residential Occupants and all other persons and property from the leased Premises. Tenant shall be responsible for any and all costs and attorney's fees incurred by the City in enforcing the provisions contained in this paragraph. 22. Holding Over. Upon the expiration or sooner termination hereof, Tenant shall immediately and without notice from the City surrender possession of the Premises to the City. In the event Tenant or Residential Occupants do not so vacate the Premises, his holding over shall not be deemed a tenancy of any kind or nature whatsoever and Tenant or Residential Occupants shall be subject to eviction proceedings without further notice. For purposes of such proceedings, Tenant shall pay the fair rental value of the Premises for the period of such holding over. The Tenant stipulates that such rental shall be that charged for the most recent rented similar unit in the Premises for under this lease, or that amount provided for in this lease, whichever is greater. Payments made by Tenant(s) to the City during such holdover shall be credited to against Tenant's obligation to pay the fair rental value of the Premises, but shall not create any rights in tenancy, of any kind or nature whatsoever, and Tenant or Residential Occupants shall remain subject to eviction without further notice. If Tenant or Residential Occupants remains on the Premises, the tenancy so created shall be a tenancy at will. 23. Subordination. This lease is and shall remain subject and subordinate to all mortgages or deeds of trust now or hereafter affecting the Premises or the building in which the Premises are located. Although the subordination provision of this section shall be deemed automatic, Tenant shall within five days after demand execute any and all instruments requested by the City to evidence such subordination. Should Tenant fail to do so, Tenant hereby irrevocably appoints the City as Tenant's attorney-in-fact to execute those instruments for and on behalf of Tenant. 24. Indemnity and Insurance. Tenant hereby agrees to and does indemnify and hold the City harmless from and against any and all claims, demands, causes, judgments or liability for any losses or damage to any property of, or any injury or death to, any persons in or about the Premises during the term of this Lease Agreement or resulting from the operation of the cafeteria, including, but not limited to Tenant or Residential Occupants, Tenant’s or Residential Occupants’ family, agents, servants, guests, licensees, or invitees; and further, Tenant shall indemnify the City for any payments, expenses, costs or attorney fees incurred by the City as a result of such losses, damages, injury or death. P14 II. 10 25. Insurance. Tenant shall procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by the Tenant pursuant to Section 23.1 above. Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. tenant shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 23.1 above by reason of its failure to procure or maintain insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. Tenant shall procure and maintain the minimum insurance coverages listed below. Such coverages shall be procured and maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Tenant pursuant to Section 23.1 above. In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. Commercial General Liability insurance with minimum combined single limits of ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall contain a severability of interests provision. The policy or policies required above shall be endorsed to include the City and the City's officers and employees. Every policy required above shall be primary insurance, and any insurance carried by the City, its officers or employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Tenant. No additional insured endorsement to the policy required above shall contain any exclusion for bodily injury or property damage arising from completed operations. Tenant shall be solely responsible for any deductible losses under any policy required above. The certificate of insurance provided by the City shall be completed by the Tenant’s insurance agent as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect, and shall be reviewed and approved by the City prior to commencement of the Lease Agreement. No other form of certificate shall be used. The certificate shall identify this Lease Agreement and shall provide that the coverages afforded under the policies shall not be canceled, terminated or materially changed until at least thirty (30) days prior written notice has been given to the City. Failure on the part of the Tenant to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of contract upon which City may immediately terminate this Lease Agreement, or at its discretion City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in P15 II. 11 connection therewith, and all monies so paid by City shall be repaid by Tenant to City. City reserves the right to request and receive a certified copy of any policy and any endorsement thereto. The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations (presently $350,000.00 per person and $950,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. 26. Waiver. Failure of the City to declare any default immediately upon occurrence thereof and any delay in taking any action in connection therewith shall not waive such default, but the City shall have the right to declare any such default at any time. 27. Landlord Remodel of Premises. In the event Landlord desires to remodel any portion of the lease premises during the term of this lease agreement, it may do so, provided it is solely at Landlord’s expense and, provided further, that any remodel work commenced by Landlord shall not interfere with or disrupt Tenant's business within the lease premises. 28. Signs. The Tenant shall not place nor allow to be placed any signs of any kind whatsoever, upon, in or about the said lease premises or any part thereof, except of a design and structure and in or at such places as may be indicated and consented to by the Landlord in writing. In case the Landlord or the Landlord's agents, employees or representatives shall deem it necessary to remove any such sigs in order to paint or make any repairs, alterations or improvements in or upon the lease premises, they shall be replaced at the Landlord's expense when the said repairs, alterations or improvements shall have been completed. Any signs permitted by the Landlord shall at all times conform with all municipal ordinances or other laws and regulations applicable thereto. 29. Exhibits as Part of the Lease: Exhibit A - The form of the subletting agreement to be used between the Tenant and third party sub-lessees. At any point during the lease term MAA may sub-lease units to a third party with prior approval from the City. The Sub-Lease Agreement shall include an Exhibit 1 that sets forth all rules and regulations and any amendments or alterations to the rules and regulations contained therein are hereby made a part of and incorporated into this lease and Tenant shall observe the same. Failure to keep and observe the said rules will constitute a material breach of the terms of this lease in the same manner as if contained herein as covenants. 30. Nondiscrimination. Tenant shall not discriminate against any or Residential Occupant or applicant to become a Residential Occupant because of age, race, color, religion, sex, P16 II. 12 creed, marital status, sexual orientation, public assistance status, disability, handicap, or nationality or ancestry. 31. Termination. In the event Tenant desires to terminate this lease for any reason whatsoever, and provided Tenant is not otherwise in default hereunder at the time it gives notice of termination, Tenant may terminate this lease by delivering written notice of termination to Landlord pursuant to paragraph 31, below, together with payment to Landlord of an amount equal to two years rent. In the event of such termination, this lease shall immediately terminate, Tenant shall deliver possession of the lease premises to Landlord pursuant to paragraph 20, above, and the parties shall be released from all further rights and obligations hereunder, subject to the rights of Landlord to collect any past due and unpaid rent, additional rent, or sums necessary to repair any damages caused by Tenant pursuant to paragraph 7, above. 32. Notices. Any notice or other communication given or made pursuant to this Agreement will be in writing and will be (i) delivered personally or by courier, (ii) emailed, (iii) sent by overnight express delivery, or (iv) mailed by first class mail, to a party at its respective address set forth below (or at such other address as will be specified by the party by like notice given to the other party): If to City: City of Aspen Attn: City Manager 130 S. Galena St. Aspen, CO 81611 Email: With a copy to: City of Aspen Attn: City Attorney 130 S. Galena St. Aspen, CO 81611 Email: jim.true@cityofaspen.com If to MAA: Music Associates of Aspen Attn: Senior Vice President 225 Music School Road P17 II. 13 Aspen, CO 81611 With a copy to: Holland and Hart, LLC Attn: Tom Todd 600 East Main, #104 Aspen, CO 81611 All such notices and other communications will be deemed given on the date of personal or local courier delivery, email transmission confirmed by a delivery receipt, delivery to overnight courier or express delivery service, or deposit in the United States Mail, and will be deemed to have been received (i) in the case of personal or local courier delivery, on the date of such delivery, (ii) in the case of telecopy, upon actual receipt, (iii) in the case of delivery by overnight courier or express delivery service, on the date following dispatch, and (iv) in the case of mailing, on the date specified in the return receipt therefor. 33. Miscellaneous. a. Assignment. Neither this Agreement nor any part or subpart of this Agreement will be assignable by Tenant, except upon written consent of the City. b. Amendment. Except for the Rules and Regulations set forth in Exhibit 1 this lease may not be modified except in writing signed by the parties. This lease shall be binding upon the heirs, successors, and assigns of the parties hereto. c. Counterparts. This Agreement may be executed in counterparts, each of which will be deemed original, but all of which, together, will constitute one instrument. d. Interpretation and Governing Law. This Agreement will not be construed against the party who prepared it but will be construed as though prepared by both parties. This Agreement will be construed, interpreted, and governed by the laws of the State of Colorado jurisdiction for any disputes hereunder shall be in the courts in and of Pitkin County and the State of Colorado. e. Severability. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable such portion will be deemed severed from this Agreement and the remaining parts will continue in full force as though such invalid or unenforceable provision had not been part of this Agreement. f. Final Agreement. Unless otherwise expressly provided herein, this Agreement constitutes the final understanding and agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings and agreements between the parties, whether written or oral. This Agreement may be amended, supplemented or changed only by a writing signed or authorized by or on behalf of the party to be bound thereby. P18 II. 14 g. Waivers. The failure of either party to insist in any one or more cases upon the strict performance of any of the other party’s obligations under this Agreement or to exercise any right or remedy herein contained will not be construed as a waiver or a relinquishment for the future of such obligation, right or remedy. No waiver by either party of any provision of this Agreement will be deemed to have been made unless set forth in writing and signed by that party. h. Successors. The terms, covenants, agreements, provisions, and conditions contained herein will bind and inure to the benefit of the parties hereto, their successors and permitted assigns. i. Headings. The headings in this Agreement are inserted for convenience only and will not be used to define, limit or describe the scope of this Agreement or any of the obligations herein. j. Construction. Whenever in this Agreement a pronoun is used, it will be construed to represent either the singular or the plural, either the masculine or the feminine, as the case will demand. k. Certain Approvals. Unless otherwise expressly stated, all approvals or consents required of either party hereunder will not be unreasonably withheld, conditioned or delayed, and will be in writing. l. Cumulative Rights. Except as expressly limited by the terms of this Agreement, all rights, powers and privileges conferred hereunder will be cumulative and not restrictive of those provided at law or in equity. m. References to this Agreement. All references to this Agreement will include all documents and exhibits incorporated by reference. IN WITNESS WHEREOF, the parties have entered into this Lease Agreement effective as of the date first set forth above. MUSIC ASSOCIATES OF ASPEN, INC., a Colorado non-profit corporation: By : ____________________________________________________________ Date CITY OF ASPEN By: ___________________________________________________________ Date P19 II. 15 ASPEN/PITKIN HOUSING AUTHORITY hereby consents to the termination of its interest in the Lease and Agreement dated May 15, 1990 and the Lease Agreement dated June 1, 1995. ASPEN/PITKIN HOUSING AUTHORITY By: ___________________________________________________________ Date P20 II. 16 EXHIBIT A MAROLT RANCH SUB-LEASE AGREEMENT THIS SUBLEASE AGREEMENT is made this day of __________________, 20____, by and between the MUSIC ASSOCIATES OF ASPEN, INC., (“MAA”) and the following person(s) (hereinafter “Sub-lessee” or “Residential Occupant”): _____________________________________________________ _____________________________________________________ MAA does hereby sub-lease to the above stated Residential Occupant(s) the residential unit identified below as a Transitional Housing Unit to be used only as a private residence for persons determined to be Residential, and for no other purpose whatsoever. IT IS MUTUALLY AGREED BY THE PARTIES AS FOLLOWS: 1.0 Sub-lease of Premises - Term. MAA hereby sub-leases to Sub-lessee(s) the following unit within the Marolt Ranch Employee Housing Complex in the City of Aspen, Colorado: _____________________________________________________ for a term commencing at noon on _____________________ and expiring at noon on ________________________ unless sooner terminated as provided herein, subject to the terms and conditions of this Sub-lease Agreement, and further subject to the Rules and Regulations appended hereto as Exhibit 1 and that certain Lease Agreement between the City of Aspen and MAA attached hereto as Exhibit 2 and by this reference incorporated herein. In no event shall the term of this Sublease Agreement be extended beyond May 15, 2011. 2.0 Use of Premises. The Premises shall be used by Residential Occupants for private dwelling residential purposes only. Residential Occupants hereby acknowledge receipt of the Lease Agreement appended hereto as Exhibit A and the Rules and Regulations appended hereto as P21 II. 17 Exhibit 1. This Sub-lease Agreement is specifically conditioned upon Residential Occupant complying in all respects with the terms and conditions set forth in Exhibit A as relating to Residential Occupants and Exhibit 1, the Rules and Regulations. Violation of these rules shall be deemed a material default under this Sub-lease Agreement. The City may, by written notice to Residential Occupants, alter or amend these rules, at which point the new rules shall be deemed incorporated into this lease. Specifically, Sub-lessee(s) hereby agree to the following terms and conditions: 2.1 Individual residential units shall have no more than a combined total of two (2) persons at any one time. Guests shall be limited to 1 guest for no more than 3 days in a row and no more than 6 days in any one month. 2.2 Sub-lessee(s) shall not permit the use of the Premises, or any part of the Premises, to be used for any business purposes or unlawful purpose of any sort. 2.3 Sub-lessee(s) shall comply with the Use of Premises provisions stated at Section 2.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A. 2.4 Sub-lessee(s) shall obtain qualification to occupy the Premises according to Section 3.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A. 2.5 Sub-lessee(s) shall comply with the restrictions on pets as set forth in Section 6.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A. 2.6 Sub-lessee(s) understand their responsibilities to leave the Premises in as good a condition as when they moved into the Premises (normal wear and tear excepted.) See Section 7.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A. 2.7 Sub-lessee(s) understand the restrictions on further assigning or sub-letting this Sub-lease Agreement as set forth in Section 9.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A. 2.8 Sub-lessee(s) understand the restrictions on alterations to the Premises as set forth in Section 10.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A. P22 II. 18 2.9 Sub-lessee(s) understand the restrictions on parking at the Marolt Ranch as set forth in Section 13.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A. 2.10 Sub-lessee(s) understand that this Sub-lease Agreement has a termination date indicating the last day that Sub-lessee(s) may occupy the Premises. Failure to comply with Section 20.0 of the Transitional Housing Lease Agreement appended hereto as Exhibit A may have severe legal consequences. 2.11 Sub-lessee(s) acknowledge receipt of Exhibit A and Exhibit 1 appended to this Sub-lease Agreement. 2.12 ENTRY BY CASE WORKERS. Sublessee hereby consents to allowing case workers for AVMH to enter the Premises upon 2 hours prior notice during normal business hours. 3.0 Rent. The rent for the Lease Premises shall be as follows: $ ___________________ Payable weekly/monthly and due to MAA as follows: _________________________________________________. IN WITNESS WHEREOF, the parties have entered into this Lease Agreement effective as of the date first set forth above. MUSIC ASSOCIATES OF ASPEN, INC. (LANDLORD): By : ____________________________________________________________ Date SUBLESSEE(S) ________________________________________________________________ Date P23 II. 19 ________________________________________________________________ Date P24 II. 20 EXHIBIT 1 Rules and Regulations for the Marolt Ranch Affordable Housing Complex – Transitional Housing WELCOME! Welcome to our community! We are pleased that you have chosen to make your home with us. This project is managed by Aspen/Pitkin County Housing Authority (APCHA). It is our desire to provide the highest quality living environment possible for our residences. FAIR HOUSING STATEMENT This community is committed to compliance with all Federal, State, and Local fair housing laws. Your community policies are designed to provide for consistent and fair treatment of all residences in the spirit of these laws. The staff at your community has a legal obligation to treat each individual in a consistent manner. Please do not put them in the difficult position of denying a request for an exception to a written policy. Thank you in advance for your cooperation. GOOD NEIGHBOR POLICY All policies in this Community Policy packet apply to residents and their guests. Please remember your neighbors and help us maintain a quiet, clean community environment. COMMUNITY STANDARDS OF OCCUPANCY All new residents in your community meet the same nondiscriminatory qualification standards based on income, employment, credit, and rental history. The maximum number of occupants allowed in each size apartment is posted in the Rental Office. The term “occupant” refers to all persons regardless of age. If the number of occupants in your apartment changes for any reason, please contact the Rental Office immediately. Our policies require that should the number of occupants in your apartment change, you must contact the office. YOUR RENTAL OFFICE PHONE NUMBER IS (970) 920-3499. “EQUAL HOUSING OPPORTUNITY” P25 II. 21 Telecommunications Device for the Deaf #1-800-545-1833 P26 II. 22 COMMUNITY RULES I. MOVE-IN / MOVE-OUT Moving into or moving out of the apartment must be accomplished between the hours of 8:00 a.m. and 8:00 p.m. to minimize disturbance of residents. Vehicles must remain in the parking area and are not permitted on the lawns, walkways, or other access areas during the moving process. II. PET/ASSISTANCE ANIMAL POLICY NO PETS ARE ALLOWED in this community. ONLY assistance animals are allowed to accommodate individuals with disabilities. III. VEHICLES All motorized vehicles parked on the property must comply with the following community policies: A. All residents’ motorized vehicle(s) parked at this apartment community must be registered with the apartment community management staff and must display current parking permit issued by management. Vehicles not registered with management may be towed at the owner’s expense in accordance with State Law. B. Any vehicle(s) within the boundaries of the property found to be an inoperable condition, or illegal to operate, will be towed at the owner’s expense. Inoperable condition includes, but is not limited to, flat or missing tire(s), mechanical problem(s), (i.e., motor will not start, drive train problem, no brakes), or damage from a collision. Illegal to operate includes, but is not limited to, a broken windshield or headlamp, no current registration, no current emission approval (if applicable), or not current license tags. C. The storage of resident/non-resident vehicle(s) is strictly prohibited. If not immediately removed, the vehicle(s) will be towed at the owner’s expense. D. Washing vehicle(s) with water provided by the apartment community is strictly prohibited. Violation of this rule is cause for a $25 charge to be assessed against the resident for each violation of this rule. The charge must be paid in full within thirty (30) days of receipt of an invoice for the charge. Residents will be charged $25 for allowing any violation of this rule by any guest. E. The repair of vehicles on this apartment community property is strictly prohibited. Any vehicle deemed under repair and inoperable by management will be towed from the property after serving property notice to the owner. F. Battery assisted start of vehicles and changing flat tires is permitted provided the vehicle is not left unattended on any type of jack, jack stand, or block at any time. G. Vehicles with a fluid leak (oil, transmission fluid, radiator, etc.) will not be parked within the physical boundaries of the property at any time. Any vehicle with a fluid leak will be removed from the property immediately upon written notification from P27 II. 23 management. The vehicle will not be allowed to be parked at the property until proof of repair of the fluid leak is provided to management. The resident(s) on Lease will be responsible for any cleaning and/or damages to the parking lot surface. The resident(s) on Lease will reimburse the apartment community for all costs within thirty (30) days of receipt of an invoice for all charges. H. All 4-wheelers, snowmobiles, mini-bikes, and any other type of recreational vehicles are strictly prohibited from operation within the physical boundaries of the property. All motorcycles, mini-bikes, or any other type of recreational vehicle must be approved, in writing, by management prior to the vehicle being brought onto and/or stored with the property boundaries. I. Vehicles are to be parked in designated parking areas only. Any vehicles not properly parked within designated parking areas will be towed at the owner’s expense. Any vehicle parked in a “NO PARKING” area, indicated by diagonal stripes or yellow or red stained curbs, will be towed at the owner’s expense. Only persons with a handicap designation may use the handicap spaces. J. Vehicles with loud mufflers or any other type of noisy mechanical attachment or defect will be removed from the property immediately upon receipt of written notification from management. The vehicle will not be returned to the property until written proof of repairs to correct the problem(s) has been approved by management. K. Due to the restricted amount of parking spaces, parking in front of the apartment buildings is for residents only. Guests must park their vehicle in parking spaces away from the buildings. It is the resident’s responsibility to inform guests where to park. L. Management is not responsible for the safety or security of your vehicle(s) or your guest’s vehicle(s). M. The parking or driving of commercial vehicles used by residents for work is prohibited within the boundaries of the property. All vehicles weighing more than 4,000 pounds are prohibited within the boundaries of the property except for the temporary delivery of goods or services to the property and/or residents. If a designated parking area is available, written permission may be obtained from management to park prohibited vehicles in the designated area. N. The driving, parking, and/or operation of any type of vehicle on the lawns is strictly prohibited. Vehicles may be operated on the driveways and parking lots only. Violations will result in corrective action deemed necessary by management and/or local police agencies. Vehicles in violation will be towed at the owner’s expense. O. Large trucks, motor homes, boats and trailers, utility trailers, commercial vans and/or trucks, excavation equipment, or any commercial equipment is strictly prohibited from the property. P. Proper notice is considered properly served by posting written notice in an obvious location (front, back, or side windows) on the vehicle. Q. Towing service is provided to this apartment community by: P28 II. 24 AJAX Towing 232 E. Main St. Aspen, Colorado 81611 (970) 920-3950 IV. SPEED LIMITS For the protection of all residents, the speed limit within the property is 10 M.P.H. unless otherwise posted. All residents and/or his/her guests are required to comply with this speed limit. V. KEY(S) AND LOCK(S) A. Keys are issued to all residents at the time of move-in. Any alteration, addition, and/or replacement of a lock(s) is not permitted without the written consent of management. A resident who receives permission to change or add a lock(s) must provide management with a key for each lock to provide access for inspections, repairs, or emergencies. Locks added to entry or sliding glass door must be installed by a Residential contractor approved by management or the apartment maintenance personnel. B. Should the lock require changing for any reason, other than the lock’s failure to operate correctly due to normal wear and tear, the actual expenses incurred will be charged to the resident. This expense will be charged to the resident(s) in those cases which include, but are not limited to: 1)Abuse of the lock by a household member, guest, friend, or relative; 2) Failure of resident to notify management of required lock repairs; 3) Other. Payment of the charges is due upon receipt of an invoice. If management can perform this task there will be a minimum charge of $25.00. C. When a resident requests a lock change to ensure his/her level of personal comfort, the actual expense incurred from a locksmith for each lock changed is the responsibility of the resident. If management performs this task there will be a minimum $25.00 charge for this service. D. Keys will be issued for household members only. Two (2) entry keys are provided per household at move-in time. One (1) key is issued per household (when applicable) for the laundry facility, mail box, and storage facility. Additional keys may be purchased at a cost of three ($3) dollars each. The number of keys of each kind is not to exceed the number of people in the household. Residents are not permitted to provide keys to relatives, friends, or guests without the express written consent of management. In such a case, the resident will provide a written request to management relieving management of all liability in the issuance and usage of the requested key(s) to a relative, friend, or guest. E. Resident(s) on Lease are responsible for the control of and return of all keys issued during his/her term of possession of the apartment. Failure to return all keys issued will result in tenant responsibility for all expenses incurred to change lock(s). VI. LOCKOUTS A. Resident(s) on Lease are responsible to provide access to his/her apartment for all household members. P29 II. 25 B. ALL AFTER HOUR LOCKOUTS WILL BE CHARGED. There will be a $25 Lockout Fee for any lockout occurring between the “closed” office hour which is 5:00 P.M. and 8:00 A.M. Monday through Friday. On all weekends and holidays, there is a $25 Lockout Fee for any lockout. This fee will be charged by invoice and is due on receipt of the invoice. VII. CHILDREN A. All residents/parents/legal guardian(s) are responsible for the conduct of his/her children and the children of his/her guests/visitors. Residents/parents/legal guardians are to execute proper supervision of his/her children at all times. B. Children’s toys, personal items, and other play things should not be left on the sidewalks, near stairways, or in common entries or hallways. For their own safety, children are not allowed to play or ride bicycles in the parking lots, streets, driveways, laundries, and/or stairways. C. Children’s toys, personal items, and other play things should not be left unattended or abandoned on the grounds. To other residents, this is unsightly and distracts from their apartment community appearance. The unattended or abandoned toys, personal items, and other play things present a potential safety hazard. Therefore, any abandoned or unattended toys, personal items or play things in any of the common areas will be disposed of as necessary without prior notice if the owner is unknown. D. No personal item(s) belonging to household members are permitted to be left unattended or abandoned in the common areas. These items present a potential safety hazard and delay the lawn maintenance service. Therefore, any abandoned or unattended personal item(s) in any of the common areas will be disposed of as necessary without prior notice if the owner is unknown. VIII. CHILD CARE (“BABYSITTING”) Child care, for a fee or no fee, within the community boundaries is prohibited. The Property Manager must be consulted and written permission obtained for residents wishing to care for (“babysit”) any children not of the immediate family for a temporary period of time. The care of children, not of the immediate family for a term of more than five (5) days, is prohibited. IX. COMMUNITY APPEARANCE A. All window coverings must have a white backing and be attractive in the surroundings. Sheets, blankets, aluminum foil or other unapproved items are not acceptable for window coverings. B. Window sills should be kept free of all personal property. Any additions to the window opening must be approved by management prior to installation. C. No personal, seasonal, special use, or other unsightly items may be stored or displayed from your balcony, patio area or common entries. Only plants and furniture designed for outside use may be placed on the patio or balcony. D. Sidewalks, entrances, passages, stairways, corridors, hallways, and courtyards should not be obstructed, encumbered, or used for any purpose other than entering and exiting your apartment. P30 II. 26 E. Patio furniture must be approved and exterior furniture must be maintained in an acceptable condition. The exterior storage of any other type of furniture is prohibited. F. The lawns and/or common areas should be kept free of unattended or abandoned furniture, toys and other personal property. G. No signs, advertisements, notices, other lettering, or flyers should be exhibited, inscribed, painted, or affixed by any resident or guest on or to any part of the exterior of the apartment building or apartment community property without the express written consent of the Property Manager. H. Screen doors of any type are prohibited and disallowed on apartment doors. I. No awning, radio antenna, television antenna, wires, or other projections are allowed in and/or about any part of the buildings and/or common areas. J. Trees, shrubbery, and lawn turf are a vital part of the community. Residents are financially responsible for any damage, destruction, or mutilation to any part of the common areas caused by their householder members, visitors, or guests. X. WASTE REMOVAL - WASTE CONTAINERS / ENCLOSURES Waste containers are provided for the purpose of trash and garbage disposal. Residents are required to use the containers provided. Management reserves the right, where permitted by law, to refuse to collect or accept from the Resident any waste products, garbage, refuse, or trash which is not separated and sorted as required by law and to require Resident’s sole cost and expense, using a contractor satisfactory to management. A. No trash or garbage accumulation is allowed in the apartment. No discarded trash, garbage, and/or household or personal item(s) is allowed in storage areas, laundry facilities, common areas, or anywhere on the property but must be placed in trash containers provided by the apartment community. B. All trash and garbage must be placed in a plastic bag, sealed, and property placed inside the dumpster. Trash and garbage are not to be placed on top or beside the waste container(s). Residents are responsible for the proper disposal of his/her trash/garbage. C. The dumpster lids or doors must be kept closed at all times to discourage entry by birds, animals and children. D. The placing of discarded furniture, mattresses, box springs, or other personal property in or around the waste container(s), and/or any common areas, or within the property boundaries is strictly prohibited. E. The improper disposal of trash, garbage, and/or other disposable household or personal item(s) may result in littering penalties as listed under littering. F. The placing or dumping of any highly flammable material in the waste container(s), which will cause a fire in the dumpster, is strictly prohibited. G. Grease, paint, acids, and other problem materials may not be disposed of in the trash container(s)/dumpster(s) and/or sewer system. The resident(s) are responsible for P31 II. 27 the proper disposal of Hazardous Wastes in accordance with the manufacturer’s recommendations. A resident will be charged the cost of repairs to the system if found in violation of this rule. H. Foreign objects are not allowed in a sink drain, water closet or tank, and/or sewer system. A resident will be charged the cost of repairs to the system if found in violation of this rule. I. It is the responsibility of the resident to remove from the property, and properly dispose of, all unwanted household items or personal property. The total cost to management for the removal of the unwanted household item(s) or personal property will be charged to the resident. Payment from the resident is due upon receipt of an invoice for the charges. Resident agrees, at his sole cost and expense, to comply with all present and future laws, orders, and regulations of all state, federal, municipal, and local governments, departments, commissions, and boards regarding the collection, sorting, separation, and recycling of waste products, garbage, refuse and trash. Resident will sort and separate such items into categories as provide by law, and in accordance with these community policies adopted by management in the above Section X, A-I. XI. LITTERING Littering is the intentional or unintentional disposal or abandonment of unwanted household or personal items contrary to established methods of disposal of said items and will be considered as damage to the property. A. Disposal of cigarette butts and/or other smoking material(s) on apartment community grounds is strictly prohibited. Residents who violate this rule are subject to the Damage Charge listed below. B. Disposal of items as small as candy, chewing gum wrappers, and/or soda cans to as large as a mattress or sofa on apartment community grounds is strictly prohibited. Residents who violate this rule are subject to the Damage Charges listed below. C. The first offense of Littering will result in written notification from management regarding the incident. D. The second offense of Littering will result in written notification from management regarding the incident and a minimum $25 damage charge, or actual cost, charged to the resident(s). Payment in full is due upon receipt of an invoice for all charges. E. Any and all subsequent offenses after the second will result in a written notification from management regarding the incident and $25 damage charge, or actual cost, per incident, charged to the resident(s). Payment in full is due upon receipt of invoice for the charges. XII. CONDUCT A. Residents and his/her guest(s) will not engage in, or participate in, such conduct which is objectionable or prejudicial to the rights, privileges, safety, and general welfare of the other residents living in the apartment community. No act of a resident and/or guest which threatens, intimidates, is deemed as harassing others, is physically violent P32 II. 28 with or without injury to another person and/or property, or has unacceptable social conduct, will be tolerated. B. No act of intimidation, harassment, verbal abuse, physical threat or violence, or social misconduct of, or to, any employee of this apartment community by any person will be tolerated. C. Social and friendly gatherings of residents and his/her guest(s) are welcomed provided such gatherings do not become noisy, offensive, threatening, or generally objectionable to other residents and/or management. This policy applies to gatherings inside an apartment as well as outside at common areas. D. The public consumption of alcoholic beverages, illegal drugs, or other chemical substances within the common areas of the apartment communities is strictly prohibited. E. Any noticeable public drunkenness or social misconduct within the physical boundaries of the apartment community is strictly prohibited. Any incident observed by other residents and/or management should be reported to the Police. F. The resident on Lease is responsible for the actions and conduct of his/her household members, guest(s), and visitor(s), while in the apartment and/or on the apartment community property. G. The volume of stereos, televisions, radios, etc., is to be controlled at a minimum sound level so as not to violate the rights of neighbors to the quiet and peaceful enjoyment of his/her residence at all times. H. The hours between 10:00 P.M. and 8:00 A.M. is, for most households, a “Quiet Time.” Every effort by each household should be directed toward minimizing any noisy, disturbing, offensive, or objectionable activity. Every effort should be directed to honor the rights of other residents to the quiet and peaceful enjoyment of his/her residence during all hours of the day. I. Resident(s) are not allowed to sell candy, cigarettes, beer, wine, or any other items out of their apartment. J. Street clothes are required in all public areas of the facility. P33 II. 29 K. Police have the right to enter the property and the power to make arrests as needed within the law. Property is under the jurisdiction of: Aspen City Police Pitkin County Sheriff XIII. COMMON AREAS AND GROUNDS The common areas and grounds are for use and enjoyment of all residents. The walkways, corridors, hallways, stairways, courtyards, playgrounds, parking lots, and lawns are not to be obstructed, encumbered, or used for any purpose other than entering or leaving the apartment premises. Residents may not linger or congregate in the walkways, hallways, corridors, stairways, property roadway, or parking areas. Storage of household or personal items in the common areas is prohibited. Stored and/or abandoned item(s) will be removed from the property with or without notice if the owner is unknown. Common areas are not intended to be used for public sales or open to the general public without written permission from the Property Manager. XIV. FIRE SAFETY Fires are a serious problem in apartment communities - much more so than in a single family dwelling due to the number of families living within each building. Though damage is usually confined to property loss and damage, the loss of personal items can be quite an emotional experience. Most often started through carelessness with cooking grease, matches, cigarettes, and fireplaces, many fires can be avoided by using caution and common sense. A. Portable charcoal cooking grills are not permitted on the property. Portable gas grills are permitted, but only on patios without overhangs. B. Storage of containers of flammable fluids or explosive materials within the apartment, storage area, or adjacent to the building exterior, is strictly prohibited. C. Storage of paper or plastic bags or materials adjacent to the hot water heater, HVAC, range, or refrigerator creates a health and fire hazard and is strictly prohibited. D. Disconnecting the smoke/fire alarm(s) is strictly prohibited. This is in violation of the fire code. It is the resident’s responsibility to notify management if the smoke/fire alarm(s) becomes faulty. Battery operated smoke detectors must not be tampered with or have battery removed. Notify office immediately if battery is dead or missing. E. Storage of any flammable fluid upon or within the apartment community property is expressly prohibited. XV. UTILITIES A. It is the responsibility of the resident(s) to notify management of all water leaks (faucets, running toilets, etc.). B. The resident will maintain all utility accounts for which he/she is responsible for payment for the entire time of possession of his/her apartment. P34 II. 30 C. Residents will maintain a minimum temperature of 60 degrees Fahrenheit to prevent physical damage to the property and plumbing system during cold weather. XVI. APPLIANCES A. Each resident is responsible for the care and use of each appliance and fixture in his/her apartment provided by the apartment community. A resident will be charged for the cost of repairs to an appliance or fixture damaged by misuse, lack of proper care, or an act of negligence. Payment for the cost of repair(s) is due upon receipt of an invoice for cost of the repair(s) and part(s). Residents are responsible for reporting any operationally defective appliance or fixture immediately. B. Disposal - If applicable, in-sink disposals require special care and use to prevent frequent mechanical problems. Residents are responsible for the cost of all parts and repairs caused by negligence or misuse of the disposal unit. XVII. LAUNDRY FACILITIES A Laundry Facilities are for RESIDENTSonly. B. Guests should only use one machine at a time. C. Residents should be considerate of other residents who may be waiting for a machine. Please do not leave machines for longer than 30 minutes at a time. D. If a dryer has completed its cycle and clothes are sitting, your clothes can be removed and placed on the folding table by anyone waiting for a machine. If you don’t want anyone touching your clothes, you should be there when the machine completes the cycle. E. Do not leave your clothes in the laundry room over night. APCHA cannot be responsible for any clothes left unsupervised by the resident. Clothes left in laundry room may be thrown away at management discretion. F. Do not take the laundry baskets to your apartment except to unload your clothes and then return it to the laundry room area or elevator area promptly. G. Clean the dryer lint filters after each load of clothes. H. Residents should clean up after themselves to keep the laundry room and machines as clean as possible. XVIII. FIREARMS, WEAPONS, DANGEROUS OBJECTS AND/OR MATERIALS The use of any type of weapon, firearm, or dangerous object is strictly prohibited within the boundaries of the property. This includes, but is not limited to: 1. Shot guns, pistols, rifles, etc. 2. Ammunition of any type. P35 II. 31 3. Pellet guns, B.B. guns, air guns (pistols, rifles, etc.), of any type. 4. Archery equipment (bows, arrows, targets, etc.). 5. Any and all types of sling shots or any device that could shoot deadly projectile. 6. All sharp edged or pointed objects (i.e., knife, swords, etc.) used with the intent to threaten, intimidate, or harm another. 7. Any and all types of explosives, fireworks, and explosive chemical(s). 8. Any other type of instrument, object, and/or material that may be deemed a weapon when used with the intent to threaten, intimidate, or harm another. XIX. MISCELLANEOUS A. No additional equipment, refrigeration unit, freezing unit, air conditioning, or heating unit may be installed, operated, or used in any way without the express written consent of the Property Manager. B. No provided equipment and/or appliances may be moved or removed from the apartment or building. All provided equipment and appliances must be permanently retained in the original location. C. No use of any other attached illumination or fluorescent device other than the electric lighting provided is allowed. D. Door to door solicitation is not permitted within the apartment community. Resident(s) should notify management whenever solicitors appear at his/her door. E. Waterbeds must be approved by management before installation. A Certificate of Insurance must be provided by the resident(s) with the property and management agent being named as additional insured parties. F. No change to the rented residence is allowed without the written consent of management. This includes painting, addition of decorations attached to the walls, windows, doors, ceilings or floors, and the temporary or permanent changing of the physical layout of the apartment. G. All residents and their guests are restricted from entering any part of the Maroon Creek Golf Course property, including the golf cart path. XX. CLEANING AND DAMAGE CHARGES Payment for charges incurred by a resident must be paid in full upon receipt of an invoice for the services, repairs, labor, and/or materials. XXI. VISITOR POLICY P36 II. 32 Residents’ guest(s) are subject to the terms of the Lease Agreement, Community Policies, and Federal Regulations. The resident accepts accountability for the guest’s action(s) while the guest(s) is on the apartment community property. XXII. NON-EMERGENCY MAINTENANCE Tenant is required to fill out a non-emergency work order request form and put it in the designated pick-up location. Non-emergency requests will be completed between 8:00 am and 5:00 pm, Monday through Friday, excluding holidays. XXIII. EMERGENCY MAINTENANCE Maintenance requests will only be handled after office hours if they are emergency situations. Tenants should contact the appropriate emergency responder for the following: Call 911 for: · Fire · Personal Danger · Theft or personal property damage Call the Property Management emergency number for: · Electrical hazard or loss of electricity (first check your breaker box first to see if a breaker has been tripped; check with Holy Cross Electric if entire unit is out) · No heat (when outside temperatures are below 50 degrees) · No water · Water leakage into or from your unit, or any common area · Broken pipes · Broken or non-working doors, locks, windows · Commode not functioning (if only one commode in apartment) XXIV. INSURANCE Please be aware that your personal possessions are not covered for fire, theft, or other perils. For this reason, we strongly recommend that you obtain adequate renters’ insurance coverage for your personal belongings. XXV. RESIDENTS GRIEVANCE AND APPEAL PROCEDURE Residents should be aware of the HUD/FmHA Resident Grievance and Appeal Procedures as outlined in the FmHA Instruction 1930 and HUD 4350.3 as well as Section 504 of the Rehabilitation Act grievance procedures. The objective of this instruction is to ensure the fair treatment of residents while providing for an equitable manner by which borrowers can operate, maintain, and safeguard rental projects. P37 II. 33 The Property Manager is aware of this instruction and will provide copies for your perusal. Copies of this procedure are posted in the office, community room, and laundry room(s). XXVI. ADDITIONAL COMMUNITY POLICIES All residents will be governed by such additional community policies as management may from time to time determine are in the best interest of all concerned. These additions to the Community Policies are a part of and have the same effect as the Lease. AGREEMENT AND ACKNOWLEDGMENT I / We have read and the Property Manager has explained in full these Community Policies and this Lease Addendum. I / We fully understand all of these Community Policies and agree to completely abide by them. I / We acknowledge receipt of these Community Policies and this Lease Addendum. I / We realize that failure to comply with these Community Policies and this Lease Addendum is a violation of the Lease and is grounds for my / our Lease to be terminated. _________________________________ ______________________ Sub-lessee Signature #1 Date _________________________________ ______________________ Sub-lessee Signature #2 Date We are pledged to the letter and spirit of FHAA, ADA, and Section 504, for the achievement of equal housing throughout the nation. We encourage and support an affirmative Fair Housing advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, disability, familial status, national origin, age (other than the minimum legal age), or belonging to a particular class and/or group. _________________________________ ______________________ City of Aspen Date JPW-saved: 6/22/18-marolt housing lease.doc P38 II. Page 1 of 2 MEMORANDUM TO: Mayor and City Council FROM: Don Taylor, Director of Finance THRU: Steve Barwick, City Manager Barry Crook, Assistant City Manager DATE OF MEMO: June 22, 2018 MEETING DATE: June 22, 2018 RE: Proposed Draft Lease with MAA REQUEST OF COUNCIL: This to review a proposed draft lease with Music Associates of Aspen (MAA) for the Marolt housing units on a seasonal basis. PREVIOUS COUNCIL ACTION: The City of Aspen entered into a lease agreement with the MAA and APCHA in May of 1990 for the rental of housing units at Marolt on a seasonal basis (3 months of Summer). The City then used the housing for seasonal rentals in the winter time. BACKGROUND: The Marolt seasonal housing project was conceived as a means for meeting both summer and winter seasonal housing needs. The MAA needed housing units for just the summer for its students and the City in general had an acute need for seasonal housing in the winter. The two joined together in contract to build the housing and used General Obligation bonds issued by the City to finance the project. The lease agreement with MAA is set to expire August 31, 2019. The MAA paid category 2 rent adjusted for inflation for three months of each year. The other nine months were covered by winter seasonal rents although it has always been tight cash flow wise. The city transferred money into the Marolt Housing fund on several occasions to keep it solvent. Despite the cash flow issues, the project has been a success providing much needed seasonal housing and optimizing the use of the property over the two seasonal periods. The City and MAA duplicated the model with Burlingame Housing Inc (BHI), at the corner of Harmony road and Hwy.82, a few years after the startup of BHI. DISCUSSION: City staff and MAA began talking about what each parties interest would be in entering a lease at the expiration of the existing lease. City staff checked in with council on this about a year ago and we were given direction to proceed and bring back a proposal for consideration. P39 II. Page 2 of 2 A draft lease has been prepared and is attached for your consideration. It is dramatically different then the last lease as there are no outstanding bonds that complicate the commitments and arrangements between the parties. This lease has been crafted as a straight up lease between the City and the MAA. Also, since there are no outstanding bonds, the city can make this lease a shorter term which will give us the opportunity to reevaluate its use and the end of this term. The key elements of the lease agreement are as follows: · Term: The lease has a 10-year term, starting June 1st, 2019 and ending August 31st, 2029. MAA has an option to extend the lease for another five years at the end of the original term. The buildings will be 45 years old at that point (if option exercised) and the Council at that time will want to reevaluate the use of the property. · Rent: The rent for the three-month period will be the equivalent of four months category two rent. This is up from three months in the old lease. The reason for this is to more equability share the vacancy costs that is inherently higher is a seasonally managed property. The rent is currently estimated to be $457,968, adjusted each year for the rents adjusted for inflation. · The MAA will rent 94 rooms, practice rooms and the cafeteria. · The rent for the cafeteria space will be and additional $12,000 for three months. The cafeteria lease is a separate lease (not included in this package) and will have the standard provisions for equipment incorporated into the structure of the building becoming part of the fixed property and will not be removed at the end of the lease. FINANCIAL/BUDGET IMPACTS: The lease structure and the absence of debt service will allow the City to better attend to the aging buildings, pay the City back for money previously advanced and perhaps put money into reserve for the next major investment in the property. RECOMMENDED ACTION: Staff recommends Council advise on changes it desires in the proposed lease and that the staff return with the lease at a future Council meeting for approving the lease. ALTERNATIVES: The City could choose not to lease the property to MAA and pursue some other course of action. PROPOSED MOTION: I move to direct staff to make the recommended changes to the draft lease and bring back to City Council for final consideration. CITY MANAGER COMMENTS: ATTACHMENTS: 1) Draft lease with MAA for Marolt Housing P40 II.