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AGENDA
CITY COUNCIL SPECIAL MEETING
April 9, 2020
4:00 PM, City Council Chambers
I.CALL TO ORDER
II.ROLL CALL
III.ACTION ITEM
Emergency Relief and Economic Stimulus
IV.ADJOURN
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MEMORANDUM
To: Aspen City Council
From: Sara Ott, City Manager
Date: April 8, 2020
RE: Resolution to Direct the City Manager to implement Emergency Relief and Economic
Stimulus in Response to the Local COVID-19 Disaster Declaration, and Ordinance to Appropriate
Necessary Funds and a Resolution to Advance Necessary Funds
Request of Council: Council is requested to consider Resolution 33-2020 to provide staff
direction regarding the desired outcomes and objectives of the City of Aspen’s COVID-19 relief
and economic stimulus efforts. Should this resolution be adopted, staff seeks necessary
appropriations through emergency Ordinance No.5-2020 to appropriate necessary funds, and
Resolution 34-2020 to authorize an interfund advance from the Wheeler Opera House Fund to
the General Fund for the purposes of financing relief and economic stimulus efforts, in
accordance to the City’s interfund advance policy.
Background: An emergency for a local disaster was declared by the City of Aspen on March 12,
2020 in response to the impact of Coronavirus on the Aspen community. The local economy is
severely impacted by the county and state public health orders. Businesses have been forced
to close, unemployment has spiked, and major summer events have been canceled.
A successful response requires clear and constant communications, sound financial forecasting
and prudent management of the City’s financial resources. On March 30, 2020, the City of
Aspen Finance Director revised the sales tax revenue forecast. The City anticipates a reduction
of $277M in sales and lodging tax base, translating into a City revenue shortfall of $12.6M from
2019 actual receipts. A special meeting of the City Council on March 30 considered an
emergency ordinance for economic relief for individuals as well as general discussion on relief
efforts for individuals and business. Further, City Council discussed desired outcomes,
objectives, and funding levels for relief and economic stimulus. The COVID-19 crisis is not only
of a magnitude never before faced by cities, states and the federal government, but the speed
at which it is manifesting is unprecedented. The basic function of the City of Aspen is to
provide essential services. Secondary to that is our role in the Pitkin County response and in
filling the gaps that may occur in federal and state relief programs. There is no guarantee that
cities under 500,000 will receive funding from the CARES Act. Governor Polis will decide how
those funds are distributed and for what purposes those funds will be spent. Without a clear
understanding of what financial aid may be coming from the State of Colorado, it is imperative
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that we exercise our fiduciary responsibility by holding back adequate financial reserves to
maintain essential services in the future.
Discussion: No further discussion requested. These resolutions and documents have been
prepared to reflect the City Council’s discussion and advancement from the April 6, 2020 work
session and special meeting. Please note, three topics are listed as requiring additional policy
discussion by the City Council before directing the City Manager to develop specific tactics.
Staff is preparing materials for future work sessions on:
• Advancing private sector construction projects to shovel ready through permit review
and extension of the spring construction season;
• Possible temporary relief of land use code requirements for accommodation, retail and
restaurant industries; and
• Collaboration with major tourism partners to emphasize Aspen’s unique and valued
experiences to launch an open for business campaign and events when appropriate.
Finance: City Council is pursuing a $5M emergency relief and economic stimulus effort. The
Council already approved by emergency $200K for immediate relief from the City’s General
Fund on March 30. The Housing Development Fund, designated for $1.5M, and the Kids First
Childcare Fund, designated for $1M, have sufficient fund balances to finance the recovery and
economic stimulus outcomes and objectives related to these limited purpose funds.
The General Fund, designated for an additional $2.3M, does not have sufficient fund balances
to meet all the outcomes and objectives and maintain the City’s fund balance policy, while
incurring an estimated $3M sales tax revenue shortfall. Therefore, as discussed by Council, an
interfund advance of $2.5M is included to address the General Fund’s needs. This interfund
advance is subject to the terms of the City’s interfund advance policy regarding interest rates
and repayment terms. At this time, the proposed resolution dictates a 10-year term, to utilize
the highest return rate based upon Treasury rates for the Wheeler Opera House Fund and to
reduce the annual repayment amount from the General Fund. In line with the City’s policy,
there is no penalty for early repayment of principal.
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Wheeler Opera House Inter-fund Advance Repayment Model
$2.5M
Term (yrs) 3 5 7 10
Interest Rate (as of 4/3/20) 0.30% 0.39% 0.52% 0.62%
Principal $2,500,000 $2,500,000 $2,500,000 $2,500,000
Annual Repayment Amt $838,338 $505,865 $364,610 $258,604
Total Repayment Cost $2,515,015 $2,529,326 $2,552,270 $2,586,040
Total Interest Cost $15,015 $29,326 $52,270 $86,040
Staff does not recommend going below the City’s fund balance policy in the General Fund at
this time, therefore allowing the City to maintain readiness in the event of a second disaster
and because sufficient reserves can be maintained through the interfund advance.
Recommendation: Staff recommends City Council affirm or amend the outcomes and
objectives, as well as direct the appropriations for implementation of the Council’s work.
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RESOLUTION NO. 33
(SERIES OF 2020)
A RESOLUTION ADOPTING FIVE OUTCOME STATEMENTS AND RELATED OBJECTIVES
FOR THE CITY OF ASPEN COVID-19 RELIEF EFFORTS AND DIRECTING THE CITY
MANAGER TO PREPARE SPECIFIC TACTICS TO IMPLEMENT THE OBJECTIVES.
WHEREAS, there have been proposals brought before City Council to fund relief and
recovery efforts related to the City of Aspen’s Local Disaster Emergency Declaration; and
WHEREAS, the City Council has evaluated these proposals and believes adopting
specific outcome statements and related objectives for the City and directing the City Manager
to prepare specific tactics to implement the objectives will best serve the City in providing
relief efforts.
NOW THEREFORE, be it resolved by City Council, that the City of Aspen hereby adopts
the following five outcome statements and related objectives for the City of Aspen Covid-19
relief efforts and to direct the City Manager to prepare specific tactics to implement the
objectives:
Outcome #1: Increase economic security for vulnerable people by aiding in securing shelter,
food, utilities, healthcare, childcare and transportation.
Objectives:
A. Quickly distribute funds to individuals and families through non-profit and
governmental partners.
B. Amend City housing policies that can provide temporary relief.
C. Educate residents on how to communicate with lenders and landlords regarding
changes in personal financial circumstances
D. Reduce barriers to accessing healthcare through education.
E. Deliver public transit in a safe and reliable manner.
F. Ensure safe, reliable and affordable childcare remains in the community for working
families.
Outcome #2: Encourage good mental health hygiene.
Objectives:
A. Regularly encourage neighbor-to-neighbor connection in new ways that account for
social distancing requirements.
B. Financially support professional mental health services in the community.
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Outcome #3: Support the Pitkin County Incident Management Team.
Objectives:
A. Frequently communicate with the Incident Management Team Incident Commanders
and the community.
B. Provide staffing for the Incident Management Team.
C. Advocate for and be a funding partner for COVID-19 testing for the community at-
large.
D. Advocate for and be a funding partner for purchasing personal protective equipment.
E. Assist with planning for ‘opening of town’ with protocol to minimize disease relapse in
the community.
Outcome #4: Proactively work to minimize further economic disruption and actively encourage
its recovery.
Objectives:
A. Serve as a connector to aid small businesses seeking assistance through state and
federal programs.
B. Leverage business expertise to establish Aspen-centric economic recovery roundtables
C. Provide flexibility to commercial leaseholders in City-owned properties.
D. Take a regional approach to recovery efforts to leverage the Western Slope’s collective
business, educational and government expertise and voice with state and federal
agencies
E. Identify and respond to gaps in state and federal business aid programs that can be
reasonably be filled by the City of Aspen.
Outcome #5: Provide essential municipal government services with minimal interruption.
Objectives:
A. Prioritize services and service levels.
B. Plan services to match available financial resources.
C. Be a responsible employer in the care and welfare of City employees.
And further, the City Council wishes to have further work sessions to evaluate the community
benefits and considerations of:
• Advancing private sector construction projects to shovel ready through permit review
and extension of the spring construction season;
• Possible temporary relief of land use code requirements for accommodation, retail and
restaurant industries; and
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• Collaboration with major tourism partners to emphasize Aspen’s unique and valued
experiences to launch an open for business campaign and events when appropriate.
______________________________
Torre, Mayor
I, Nicole Henning, duly appointed and acting City Clerk of the City of Aspen, Colorado, do
hereby certify that the foregoing is a true and correct copy of the Resolution adopted by
the City Council at its meeting held on April 9 , 2020.
_______________________________
Nicole Henning
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ORDINANCE NO. 05
(SERIES OF 2020)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, ADOPTING EMERGENCY
APPROPRIATIONS TO THE 2020 MUNICIPAL BUDGET IN RESPONSE TO COVID-19
WHEREAS, the City of Aspen declared a local disaster emergency on March 12, 2020 pertaining
to the occurrence or imminent threat of widespread or severe damage, injury or loss of life or
property resulting from COVID-19; and
WHEREAS, whereas the City of Aspen commenced and continues to support crisis response
efforts,through both personal and other resources,led by the Pitkin County Incident
Management Team; and
WHEREAS, on March 17, 2020 Pitkin County Board of Commissioners adopted emergency
spending authority for its Public Health Emergency Response programs to provide additional
resources for housing, food and childcare assistance for those experiencing financial distress as
a result of the COVID-19 impact; and
WHEREAS, current resources dedicated within Pitkin County’s budget appropriation are likely to
be insufficient to address the aggregate demands for relief, including those from City of Aspen
residents; and
WHEREAS, on March 30, 2020, City Council adopted Ordinance #4, Series of 2020, an emergency
ordinance providing a one-time appropriation of $200,000 for distribution to Pitkin County
pursuant to an Intergovernmental Agreement (IGA) for the purpose of providing financial relief
to City of Aspen residents; and
WHEREAS, on April 9, 2020, City Council approved a Resolution adopting five outcome
statements and related objectives for the City of Aspen Covid-19 relief efforts and directing the
City Manager to implement specific tactics to reach the objectives; and
WHEREAS, the City Council has determined that additional appropriations to this County fund
and other funds that may be deemed appropriate for receipt of funds for emergency relief as
approved by Resolution of the City Council are necessary for further economic relief, recovery
and stimulus; and
WHEREAS, the City of Aspen (the “City”) is a legally and regularly created, established, organized
and existing municipal corporation under the provisions of Article XX of the Constitution of the
State of Colorado and the home rule charter of the City (the “Charter”); and
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WHEREAS, Section 9.12 of the Charter authorizes the City Council to enact emergency
appropriations through an emergency ordinances adopted pursuant to Section 4.11 for the
preservation of public property, health, peace, or safety upon the unanimous vote of City Council
members present or upon a vote of four (4) Council members, whichever is less; and
NOW THEREFORE, be it resolved by City Council,
Section 1. That the budget for the City of Aspen, Colorado for fiscal year 2020 be amended to
include an additional emergency appropriations as follows:
1. $300,000 from the City of Aspen’s General Fund released to Pitkin County
pursuant to the intergovernmental agreement entered by these governments for
the purpose of providing financial relief to City of Aspen residents in the areas of
housing, utility, food and childcare assistance under the existing Pitkin County
qualification’s structure for relief.
2. $2,000,000 from the City of Aspen’s General Fund towards reaching the City of
Aspen Covid-19 relief effort outcomes, including:
a) immediate economic relief disbursement through the Aspen Community
Foundation; and,
b) distribution to Aspen area serving non-profits that provide legal aid and
mental health services; and,
c) community at-large COVID-19 testing and personal protective equipment;
and,
d) rent assistance/loan to stabilize businesses and non-profits, including
providing for a small business loan/stabilization program; and,
e) additional communication and temporary city staffing needs to implement the
adopted outcomes.
3. $1,500,000 from the City of Aspen’s Housing Development Fund towards reaching
the City of Aspen Covid-19 relief effort outcomes, including
a) rent and mortgage assistance for deed-restricted housing units as qualified
through Pitkin County Human Services; and,
b) additional communication and temporary city staffing needs to implement the
adopted outcomes.
4. $1,000,000 from the City of Aspen Kids First Fund towards reaching the City of
Aspen Covid-19 relief effort outcomes, including
a) additional childcare financial aid;
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b) aiding in retaining qualified childcare providers and staff in the community;
and,
c) additional communication and temporary city staffing needs to implement the
adopted outcomes.
The specific amount provided to any program or programs and the restrictions and
conditions of any specific disbursement shall be determined by the City Manager, with
consultation and approval of the Finance Director and City Attorney. Any funds not spent
at the time the Declaration of Local Disaster Emergency is terminated shall be returned to
the particular fund from which the appropriation was designated above.
Section 2. It is hereby declared that, in the opinion of the City Council, an emergency exists; there is
a need for the preservation of public property, health, peace, or safety of the City of Aspen, its
residents, and guests.
This ordinance shall become effective immediately upon passage by the City Council at the second
reading of the Ordinance.
The City Clerk is directed that publication of this ordinance shall be made as soon as practical and
no later than ten (10) days following final passage.
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.
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 the ordinances amended as herein
provided, and the same shall be construed and concluded under such prior ordinances.
INTRODUCED AND READ as provided by law as an emergency ordinance by the City Council of the
City of Aspen on the day of , 2020.
_______________________
Torre, Mayor
ATTEST:
_______________________
Nicole Henning, City Clerk
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FINALLY adopted, passed and approved this _______ day of ______________, 2020, by
the unanimous vote of all City Council members present; or
a vote of four (4) council members.
_______________________
Torre, Mayor
ATTEST:
_______________________
Nicole Henning, City Clerk
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RESOLUTION NO. 34
(SERIES OF 2020)
A RESOLUTION AUTHORIZING AND APPROVING THE INTERFUND ADVANCE
BETWEEN THE WHEELER OPERA HOUSE FU ND AND THE CITY OF ASPEN’S GENERAL FUND
FOR EMERGENCY RELIEF RELATED TO THE SPREAD OF COVID-19
WHEREAS, there have been proposals brought before City Council to fund relief and
recovery efforts related to the City of Aspen’s Local Disaster Emergency Declaration; and
WHEREAS, the City Council has evaluated these proposals and believe that funding
such proposals would be in the best interest of the City of Aspen to promote the economic
recovery from the devastation that has been caused by COVID-19; and
WHEREAS, Government Accounting and Auditing Financial Regulations do not
consider an asset being transferred between City funds as an investment nor the
repayment liability as debt, because they are purely internal to the governing entity; and
WHEREAS, pursuant to this criterion, interfund advance remain as allowable
transactions relative to the City's financial and investment policies; and
WHEREAS, the City can utilize interfund advance between the Wheeler Opera House
Fund and the General Fund to distribute the financial burden of this economic recovery
over time and thereby avoid any significant impact to the General Fund in the short
term.
NOW THEREFORE, be it resolved by City Council, that the City of Aspen hereby
approves an interfund advance of $2,500,000 from the Wheeler Opera House Fund and to
the City of Aspen General Fund, with the following conditions:
• The principal amount will be paid back in equal installments over a ten- year period
commencing 2020,
• The interest rate applied to the internal advance will be set equal to the 10- year
Treasury rate at the time of the initial advance, and
• There shall be no pre-payment penalty in the event the General Fund repays the
remaining outstanding principal prior to the full 10-year period.
______________________________
Torre, Mayor
I, Nicole Henning, duly appointed and acting City Clerk of the City of Aspen, Colorado, do
hereby certify that the foregoing is a true and correct copy of the Resolution adopted by
the City Council at its meeting held on April 9 , 2020.
_______________________________
Nicole Henning
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