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Home My WebLink AboutPACKET Town Board 2008-04-22C f.j , Prepared 4/14/08 *Revised y ' 2 ' ' 1111 TOWN Of {HES PARK The Mission of the Town of Estes Park is to plan and provide reliable, high-value services for our citizens, visitors, and employees. We take great pride ensuring and enhancing the quality of life in our community by being good stewards of public resources and natural setting. BOARD OF TRUSTEES - TOWN OF ESTES PARK Tuesday, April 22,2008 7:00 p.m. AGENDA PLEDGE OF ALLEGIANCE. (Any person desiring to participate, please join the Board in the Pledge of Allegiance). PROCLAMATION 'EARTH DAY' April 22,2008. PROCLAMATION 20# ANNUAL ESTES PARK DUCK RACE, "DUCKY RACE DAY" MAY 3, 2008. PUBLIC COMMENT (Please state your name and address). TOWN BOARD COMMENTS. 1. CONSENT AGENDA (Approval of): 1. Town Board Minutes dated April 8,2008. 2. Bills. 3. Committee Minutes: A. Utilities, April 10,2008. 1. 2008 Tree Trimming contract - Asplundh, $75,000 - Budgeted. 4. Estes Valley Planning Commission, March 18,2008 (acknowledgement only). lA. PLANNING COMMISSION AGENDA (Approval of): Mayor Pinkham: Open the Public Hearing for all Consent Agenda Items. If the Applicant, Public or Town Board wish to speak to any of these consent items, they will be moved to the "Action Item" Section. 1. CONSENT ITEMS: A. SUPPLEMENTAL CONDOMINIUM MAP 1. The Links of Estes Park Condominiums, Supplemental Condominium Map #1, A Portion of Lot 3, South St. Vrain Addition, Mountain View Vacation, LLC/Applicant. ... 1',44 1 2. MLL-2 Condominiums, Supplemental Condominium Map #3, Lots 3A & 3B, Mary's Lake Replat of Marys Lake Subdivision, Don DeBey/Applicant. 2. ACTION ITEM: Mayor Pinkham: Open the Public Hearing (A). The formal public hearing will be conducted as follows: â€¢ Mayor - Open Public Hearing â€¢ Staff Reporl â€¢ Public Testimony â€¢ Mayor - Close Public Hearing â€¢ Motion to Approve/Deny. a. KUNDTZ ANNEXATION AND RELATED LAND USE ITEMS: 1. ANNEXATION - RESOLUTION #08-08 & ORDINANCE #04-08. 2. MINOR SUBDIVISION PLAT - Kundtz Subdivision, Lot 1, Block 1, Ferguson Subdivision, & a Portion of the SW % of the NE y of S35- T5N-R73W of the 6th P.M., Habitat for Humanity of Estes Valley, Inc./Applicant. 3. REZONING - ORDINANCE #05-08 - Lot 1, Block 1, Ferguson Subdivision, & a Portion of the SW 1/4 of the NE 14 of S35-T5N-R73W of the 6th P.M from A-1-Accommodations to R-1-Residentia/ zoning Habitat for Humanity of Estes Valley, Inc./Applicant. 2. ACTION ITEMS: 1. 1st QUARTER FINANCIAL REPORT. Finance Officer Mcfarland. 2. SYSTEM DEVELOPMENT FEE - ORDINANCE #06- 08. Director Goehring. 3. BONDING FOR THE MARY'S LAKE WATER TREATMENT PLAN IMPROVEMENTS - ORDINANCE #07-08. Finance Officer McFarland. 4. AIR CURTAIN BURNER. Director Zurn. 5. TOWN ADMINISTRATOR REPORT. 6. ADJOURN. NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the AnpnriA wAQ nrpnmrprl . Cynthia Deats From: EP Administration [ir3045@estes.org] Sent: Monday, April 21, 2008 8:07 AM To: Cynthia Deats Subject: Job Done Notice(Send) ***************************** *** Job Done Notice(Send) *** ******* JOB NO. 0238 ST. TIME 04/21 07:56 PGS. 2 SEND DOCUMENT NAME TX/RX INCOMPLETE ----- TRANSACTION OK 6672527 Greg White 5869561 KEPL 5869532 Trail Gazette 5866336 Chamber of Commerce 5861691 Channel 8 6353677 Reporter Herald 2247899 Coloradoan 5771590 EP News ERROR ----- 1 . 1, Town of Estes Park, Larimer County, Colorado, April 8,2008 Minutes of a Regular meeting of the Board of Trustees of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town of Estes Park on the 8th day of April, 2008. Meeting called to order by Mayor John Baudek. Present: John Baudek, Mayor Bill Pinkham, Mayor ProTem Trustees Eric Blackhurst Dorla Eisenlauer Richard Homeier Chuck Levine Wayne Newsom John Ericson, Trustee Elect Jerry Miller, Trustee Elect Also Present: Jacquie Halburnt, Town Administrator Lowell Richardson, Deputy Town Administrator Jackie Williamson, Town Clerk Absent: Attorney Greg White Mayor Baudek called the meeting to order at 7:00 p.m. and invited any person desiring to participate to stand and recite the Pledge of Allegiance. PUBLIC COMMENT Paul Fishman/Town Citizen congratulated those elected and stated he had learned a lot through the election process. TOWN BOARD COMMENTS Trustee Blackhurst reminded the public that the Estes Park Housing Authority would meet Wednesday, April 9th at 8:30 a.m. in Room 130. Trustee Homeier stated the Utilities Committee would meet on Thursday, April 1Oth at 8:00 a.m. Town Administrator Halburnt commented the source of the water contamination in Alamosa was the storage tank and/or cross connections. Alamosa does not use chlorine to disinfect their water; however, the Town does use chlorine. The Water Department has stated an outbreak similar to Alamosa would be unlikely. 1. CONSENT AGENDA (Approval of): 1. Town Board Minutes dated March 25,2008. 2. Bills. 3. Committee Minutes: A. Public Safety, March 27,2008. B. Community Development, April 3,2008: CVB 1. 2008 Parade Schedule and Road Closures: a. Rooftop Rodeo - July 8,2008. b. Scottish Highland Festival - September 6,2008. c. Catch the Glow - November 28,2008. 1 . 1 r ' ~t Board of Trustees - April 8,2008 - Page 2 2. Street Closure - MacGregor Ave. from Bus turnout to Park Ln. for Coolest Car Show on July 4,2008. 3. Additional 2008 Rooftop Rodeo Committee Members. Senior Center 1. Policy Manual Adoption. It was moved and seconded (Newsom/Homeier) the Consent Agenda be approved, and it passed unanimously. 2. ACTION ITEMS: 1. WILDLIFE HABITAT STUDY. Dir. Joseph stated the proposal would retain the service of a wildlife biologist to prepare a wildlife habitat scoping, mapping and habitat protection study (prioritization). Staff received four separate proposal and all companies are well qualified to do the work. He reviewed the costs, a matrix of the strengths and weakness, experience and the timeframe for completion of a study. Staff recommends either EDAW or Walsh. The project would be funded by the Larimer County Open Space Fund. This study would provide a foundation to further inform all the processes at the local government level and most importantly land use issues for the protection of wildlife habitat and open space. The more expensive studies would provide additional contacts and more time on the ground to verify the data collected. Comments from the Board are summarized: A public forum should be held after the completion of the study to review the results and methodology used; the study could be an addendum to the Comprehensive Plan; a valley wide study is needed to address issues of development; it would be important to meet with the consultant during the study to understand the direction of the study and have an opportunity to shape the results; a meeting with the Community Development Committee to express issues to the consultant prior to the study moving forward; a firm price should be established to provide the public forum prior to signing a contract. David Habecker/Town Citizen stated a true and accurate study of wildlife should be done over a year and not within a couple of months. He questioned the intent of the study and what it would encompass and what type of properties, i.e. developed land, vacant land, etc., would the study address. He also questioned if the study would provide mitigation for issues raised. Sandy Osterman/Town Citizen stated assumptions have been made that wildlife adapt to development. She request the Board consider a study that includes new information on the negative affect of development on the wildlife It was moved and seconded (Newsom/Levine) to enter into a contract with EDAW for a wildlife study, and it passed unanimously. 2. SUBDIVISION IMPROVEMENT GUARANTEE/INTEREST ON CASH DEPOSITS - FINANCE POLICY MANUAL. Town Administrator Halburnt recommended a policy be adopted to address the accrual of interest on cash deposits for subdivision improvement guarantees. The interest would be accrued at the rate set by the local money market fund. The accrued interest would be disbursed when the deposit is refunded minus the appropriate administrative fees. The policy would be retroactive to January 1, 2004. It was moved and seconded (Eisenlauer/Pinkham) to approve the policy as outlined, and it passed unanimously. 3. APRIL 1, 2008 ELECTION REPORT. I 1 Board of Trustees - April 8,2008 - Page 3 Town Clerk Williamson reviewed the Official April 1St Election Report: FOR MAYOR: Absentee Polling Place Total Votes Cast *BILL PINKHAM 274 518 792 SUSAN L. DOYLEN 147 251 398 LARRY PESSES 128 215 343 *Elected to 4-yr. term FOR TRUSTEE: Absentee Polling Place Total Votes Cast PATRICK CIPOLLA 270 402 672 *JOHN ERICSON 315 462 777 *JERRY MILLER 222 459 681 PAUL FISHMAN 164 329 493 *CHUCK LEVINE 290 602 892 A.W. (ART) BLUME 203 309 512 *Elected to 4-yr. terms BALLOT QUESTION: Absentee Polling Place Total Votes Cast Before any sale of any property owned by the Town of Estes Park within the Stanley Historic District, shall the question of such sale and the terms and consideration thereof be submitted and approved at a regular or special election? 438 706 1144 124 284 408 Total Registered Voters = 4,313 Number of Absentee Votes Cast = 569 Number of Polling Place Votes Cast = 998 TOTAL VOTES CAST = 1,567 = 36.3% As all invoices have not yet been received, the Election Expense Report will be distributed to the Town Board in the near future. ACKNOWLEDGEMENT OF RETIRING MAYOR JOHN BAUDEK AND TRUSTEE WAYNE NEWSOM Mayor Baudek presented Trustee Newsom with a Town Plague commemorating his service to the community, and "Resolutions of Respect" honoring his active participation on the goals and achievements of the Board of Trustees during his terms of office as Trustee. Trustee Newsom commented that each of the Trustees currently on the Board have served the Town with integrity and made decisions with only the best intentions for the Town's future. Mayor ProTem Pinkham presented Mayor Baudek with a Town Plague commemorating his twelve years of service to the community, and "Resolutions 1 . 1r Board of Trustees - April 8,2008 - Page 4 of Respect" honoring his active participation on the goals and achievements of the Board of Trustees during his terms of office as Trustee and Mayor. Larimer County Board of Commissioners wrote a Â·letter thanking the Mayor for his years of service. Brian Moeck/Platte River Power Authority General Manager presented Mayor John Baudek with a Resolution for his service on the PRPA Board of Directors. Mayor Baudek serviced on the American Public Power Association as a member of the Policy Maker Council and lobbied for the rate payers of Northern Colorado. He stated it was a pleasure serving with Mayor Baudek. Vaughn Baker/Rocky Mountain National Park Superintendent presented Mayor Baudek and Trustee Newsom with a gift. He stated it had been a pleasure working with the Town on Wilderness legislation, establishing the shuttle service and the joint fire station on Mills Drive. Mayor Baudek reviewed his time serving the Town. He stated it has been an interesting and rewarding experience. The Town has a great team of employees and volunteers that have served our community to complete some worthy projects including the establishment of the Convention and Visitors Bureau, expanded trail system, infrastructure improvements, affordable housing through the Estes Park Housing Authority, Sister Cities, Estes Park Urban Renewal Authority, senior center, expanded museum, shuttle system, funding for civic organizations to support their missions, Stanley Fairground improvements, Town picnic area, Town flag, Catch the Glow parade, expanded Elkfest, and the Dannels Fire station. He expressed how proud he is of Town staff, the appointed committees, the elected Board, the volunteers and the citizens of Estes Park that have made Estes Park what it is today. He thanked his wife and family for their support. He wished the new Board success. Concluding the presentation, Mayor Baudek announced a recess at 7:55 p.m. Mayor Baudek reconvened the meeting at 8:05 p.m. 4. SWEARING-IN CEREMONY FOR NEWLY-ELECTED MAYOR AND TRUSTEES. Municipal Judge Brown conducted a Swearing-In Ceremony for the following: Mayor William C. Pinkham Trustees: John Ericson, Chuck Levine and Jerry Miller Mayor Pinkham welcomed the new Board members and thanked the entire Board for their commitment to the community. 5. MAYOR PRO TEM. It was moved and seconded (BlackhursVEisenlauer) Trustee Levine fill the position of Mayor ProTem, and it passed with Trustee Levine abstaining. 6. APPOINTMENTS. Town Clerk Williamson announced the following appointments: Community Development Committee Trustee Levine, Chair, Trustee Eisenlauer & Trustee Miller Rooftop Rodeo Liaison - Dorla Eisenlauer Advertising Committee Liaison - Jerry Miller Estes Valley Planning Commission - Richard Homeier Utilities Committee . fT LI Board of Trustees - April 8,2008 - Page 5 Trustee Homeier, Chair; Trustee Blackhurst & Trustee Ericson Public Works Committee Trustee Blackhurst, Chair; Trustee Levine & Trustee Miller Public Safety Committee Trustee Eisenlauer, Chair; Trustee Ericson & Trustee Homeier Fire Code Review Committee (International Fire Code Review): Scott Dorman Will Birchfield Dorla Eisenlauer Administrative Staff Jacquie Halburnt, Town Administrator Jackie Williamson, Town Clerk Cyd Deats, Deputy Town Clerk Steve McFarland, Town Treasurer/Town Clerk ProTem Gregory A. White, Town Attorney John P. Frey, Assistant Town Attorney Wes Kufeld, Police Chief Gary R. Brown, Municipal Judge John W. Easley, Jr., Assistant Municipal Judge Scott Dorman, Fire Chief Daryl McCown, 1St Assistant Fire Chief Robert Hirning, 2nd Assistant Fire Chief Building Code Board of Appeals, 2-yr. Terms, Expiring 04/10 Karl Ertl (Re-appointment) Steve Lane (") Kerry Prochaska (") Firemen's Pension Board Mayor William Pinkham Steve McFarland, Treasurer Jackie Williamson, Secretary Scott Dorman, President Jon Landkamer, EPVFD Member Will Birchfield, EPVFD Member Policemen's Pension Board Mayor William Pinkham Steve McFarland, Treasurer Jackie Williamson, Secretary Wes Kufeld, Police Chief Tree Board, 4-yr. Terms, Expiring 04/12 Trustee Levine (Trustee Liaison) Wendell Amos Russ Franklin Miscellaneous Appointments Audit Committee: Mayor William Pinkham Trustee John Ericson, Chair Jacquie Halburnt, Staff Steve McFarland, Staff 0 I 1 3 -,1 Board of Trustees - April 8,2008 - Page 6 North Front Range Water Quality Planning Association Bob Goehring Platte River Power Authority Board of Directors Mayor William Pinkham, 4/12 Bob Goehring, 12/11 Windy Gap Greg White Bob Goehring, Alternate Colorado Municipal League Policy Committee Chuck Levine Larimer County Open Lands Advisory Board William Pinkham, 6/30/12 It was moved and seconded (Levine/Blackhurst) the Board of Trustees ratify all appointments as listed above, and the motion passed unanimously. 7. TOWN ADMINISTRATOR'S REPORT. The Committee schedule has been modified as follows with all Committee meetings beginning at 8:00 a.m. in the Board Room: 1 Community Development - 1St Thursday 1 Utilities - 2nd Thursday k Public Safety - 3rd Thursday k Public Works - 4th Thursday Whereupon Mayor Pinkham adjourned the meeting at 8:23 p.m. William C. Pinkham, Mayor Jackie Williamson, Town Clerk . I f 1' RECORD OF PROCEEDINGS Town of Estes Park, Larimer County, Colorado, April 10, 2008 Minutes of a Regular meeting of the UTILITIES COMMITTEE of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in said Town of Estes Park on the 10th day of April, 2008. Committee: Chairman Homeier, Trustees Blackhurst and Ericson Attending: Chairman Homeier and Trustee Blackhurst Also Attending: Deputy Town Administrator Richardson, Director Goehring, Officer McFarland, Assistant Dir. Mangelsen and Clerk Williamson Absent Trustee Ericson and Town Administrator Halburnt Chairman Homeier called the meeting to order at 8:00 a.m. LIGHT & POWER 2006 & 2007 Tree Trimming of Overhead Power Lines - Request Approval. The Light & Power Department budget includes $75,000 for the purpose of trimming trees that lie in or near the overhead power lines. This is a continual process that benefits the system through increased reliability and safety. The following bids were received for 800 hours of service from a two-person crew: 1) Asplundh Tree Expert: Year 2008: $66,912.00/800 hrs. or $83.64/Hr. Year 2009: $70,240.00/800 hrs. or $87.80/Hr. 2) Wrights Tree Service - (NO BID) 3) Foothills Tree Experts- (NO BID) 4) Davey Tree Surgery Company- (NO BID) After further discussion, the Committee recommends approval of the contract with Asplundh Tree Expert at a cost of $83.64/hr. for 2008 and $87.80/hr. for 2009 at a total cost not to exceed $75,000 (896/hrs.) with the second year contingent upon funding from account #502-6301-540-2532. Traffic Light Painting - Request Approval. Since 2003, the Town has maintained the painting of the traffic signals in and around town. As in the past, the project was advertised in the area papers with the hopes of spurning interest and participation from local qualified paint contractors. Again as in the past one bid was submitted by area contractor Roger Ping of Estes Park Painting and Decorating Inc. Staff recommends approval to contract the Manford Ave./Colo. State Hwy 7 painting project with Estes Park Painting and Decorating for $7,700. Discussion followed amongst the Committee with regard for the need to paint the aluminum traffic signal poles and create a maintenance issue. Staff suggested the item could be delayed until a decision is reached on the renewal of EPURA. The new EPURA plan includes this portion of Hwy 7. The Committee recommends postponing the painting of the traffic signal at Manford Ave./ Colo. State Hwy 7 until staff can determine if the pole is currently painted green and until a decision is reached on the renewal of EPURA. WATER . RECORD OF PROCEEDINGS 1 1 Utilities Committee - April 10, 2008 - Page 2 Hill Crest Water Line Extension - Request Approval. In order to get service from the Town's water system the owners of Lot 9 Hill Crest Estates extended the water main within the Right-of-Way from Ptarmigan Trail and continuing along Stone Gate Drive to their lot. This water main will be available to other lots that would not previously had access to the Town's water supply. The owners of Lot 9 have requested to enter into a Waterline Extension Across Vacant Land Agreement to recover portions of the costs related to the construction of this infrastructure. This Agreement would be in effect for a period of ten years and would equally distribute the infrastructure costs between Lots 1, 9, 10 and 11 of Hill Crest Estates in the amount of $21,544.75 each. The Committee questioned if the agreement should address interest and how the other property owners would be aware of the agreement. Staff would discuss the issue of interest with Attorney White and record the document for future title searches. Concluding discussion, the Committee recommends approval of the Waterline Extension Across Vacant Land Agreement with the owners of Lot 9, Hill Crest Estates for a period of 10 years. REPORTS. 1. Water Bond Schedule: Finance Officer McFarland and Dir. Goehring reviewed the schedule for the bonding of the upcoming improvements at the Mary's Lake Water Treatment facility. Trustee Blackhurst stated concern with the upcoming rate hearing on the significant increase to the system development fee and the difference in condominium rates and residential rates. He understands the Town's rates are significantly below other communities in the Front Range even with the increase; however, the proposed increases are considerable. He would encourage staff to review rates more frequently and increase rates over time instead of in one large increase. Chairman Homeier recommended staff have an alternative suggestion for the public hearing. Dir. Goehring commented staff is in the process of reviewing 10% of the condominium records to determine if the proposed rate is accurate. If not, staff suggested proceeding if the rate increases and budgeting for a study of the issue in January of 2009. He stated the rate increase could be phased over a three year period rather than in one large increase. Trustee Blackhurst questioned why a water acquisition fee is charged when the Town is not acquiring new water rights. Dir. Goehring stated the fee is a return on the Town's investment on past water right purchases. There being no further business, Chairman Homeier adjourned the meeting at 8:53 a.m. Jackie Williamson, Town Clerk . Ti J' RECORD OF PROCEEDINGS Regular Meeting of the Estes Valley Planning Commission March 18, 2008,1:30 p.m. Board Room, Estes Park Town Hall Commission: Chair Ike Eisenlauer; Commissioners Wendell Amos, Bruce Grant, Betty Hull, Joyce Kitchen, Doug Klink, and John Tucker Attending: Chair Eisenlauer; Commissioners Amos, Grant, Hull, Kitchen, Klink, and Tucker' Also Attending: Director Joseph, Planner Shirk, Planner Chilcott, Town Attorney White, Town Board Liaison Homeier, Public Works Director Zurn, and Recording Secretary Roederer Absent: None The following minutes reflect the order of the agenda and not necessarily the chronological sequence of the meeting. Chair Eisenlauer called the meeting to order at 1:30 p.m. 1. PUBLIC COMMENT Ron Norris/President of the Association for Responsible Development expressed the association's strong support for expediting work on development of a wildlife policy and open-space plan and for revisions to the Estes Valley Development Code addressing building density requirements and building appearance standards. He summarized updates received from Town staff on anticipated progress and emphasized that these issues should continue to have high priority. Lon Sheldon/Van Horn Engineering requested that the Planning Commission provide feedback for one of his clients on a potential subdivision request-specifically, whether the Commission would consider negotiating the required infrastructure (water, roads, etc.) in exchange for lower-density development on a parcel. Director Joseph stated the Planning Commission can only provide an answer if they are provided with all the details that pertain to the property. A complete application must be submitted for review. Discussion followed regarding concept presentations, which are subject to staff review and are routed to all affected agencies for review, and the public is notified and given time to comment. Attorney White cautioned the Commission against giving advisory opinions outside of the standard review process. 2. CONSENT AGENDA a. Approval of minutes dated February 19, 2008 b. AMENDED PLAT, Lot 3, Horse Creek Ranch Subdivision, 3540 Little Valley Road, The Portfolio Group, IncJApplicant-Request to amend the platted limits of disturbance area It was moved and seconded (Amos/Klink) to approve the minutes as presented, and to recommend approval of the Amended Plat, Lot 3, Horse Creek Ranch Subdivision, to the ,Board of County Commissioners, with the findings recommended by staff, and the motion passed unanimously. 3. CONTINUATION OF HEARING from February 19, 2008 regarding REZONING REQUEST and MINOR SUBDIVISION PLAT, KUNDTZ SUBDIVISION, Lot 1, Block 1, Ferguson Subdivision, and a Portion of the SW 14 of the NE 1/4 of S25-T5N-R73W of the 6~h P.M., 821 E. Riverside Lane, Habitat for Humanity of Estes Valley, Inc./Applicant RECORD OF PROCEEDINGS ' ' 1, T Estes Valley Planning Commission 2 March 18, 2008 Chair Eisenlauer explained that this agenda item was presented at the February 19, 2008 Planning Commission meeting; the item was continued in order to take further public comment. Comments will be accepted at today's meeting only from those who have not previously addressed the Commission on this matter. Director Joseph noted that Commissioner Hull had raised questions regarding the lot area. He expressed his desire to have the applicant's engineer address this issue so that the record is correct. Lon Sheldon/Van Horn Engineering stated the subdivision was platted in 1904 and subsequently resurveyed in 1935. This resurvey left gaps between some of the lots; quiet title action was used to join disconnected sections of the subdivision. The quiet title ' documentation will become part of the permanent record of the Kundtz Subdivision plat. Amy Plummer/Van Horn Engineering stated the lot sizes shown on the plat are correct. The total lot size is 0.672 acres prior to road right-of-way dedication. The sizes of the individual lots shown on the proposed subdivision plat are correct. Commissioner Hull stated for the record that she has had private conversations with both Habitat for Humanity board members and neighboring property owners since the February meeting. Both sides of the issue were discussed. Nothing was discussed in her private conversations that is not included in the material provided in the Planning Commission packets or in letters received over the past month. Public Comment: The meeting was opened to public comment. Becaude approximately two hours of public comment were received by the Planning Commission at the February meeting, comments were limited to a maximum of three minutes in order to allow the Commissionets time'to deliberate and act on this request. Those speaking in support of Habitat for Humanity (HfH) and/or in favor of the proposal included Louise Olson/HfH Board Member, Dan Mangler/HfH Board Member, Patricia Washburn/Town Resident, and Tim Hess/Town Resident. Arguments in favor included: HfH Board members have met with neighboring property owners and listened to neighborhood concerns; HfH will make every effort t6 choose families wisely with the help of neighboring property owners and will develop mentorships for the new HfH families; the adopted mission of the Town includes providing reliable services, which requires service workers; the propdsal is consistent with the Comprehensive Plan and EVDC and will help actualize the Town's vision statement; property values in the Estes Valley have escalated-Estes Park should not become an economically gated community; there is need to ensure diversity in our community; HfH families are hard-working, contributing members of the community and should be integrated within the community; HfH families should not be considered undesirable neighbors and should be approached directly if adjoining neighbors have complaints or concerns; the bed-and-breakfast two lots away from the proposed subdivision has much higher density than that contemplated by HfH, as does the nearby RV park; three residences on this lot will not be detrimental to the neighborhood; the Planning Commission should not be persuaded by NIMBYs. Those expressing concern and/or speaking in opposition included Judy Schreiber/Neighboring Property Owner, Michael Kellem/Neighboring Property Owner, Millie and Roger Steketee/Neighboring Property Owners, and Kent Bosch/HOA President of Charles Heights Association. Arguments against the applicant's request included: the lot should not be subdivided into three lots; neighbors' concerns could be addressed if review of certain aspects of the proposed development was required-the homes should have natural wood finish and garage space should be provided to prevent junk accumulation outdoors; applicants for the homes should be subjected to* a rigorous screening process; rezoning should not take plate until the development is completed; HfH in Boulder has built homes in locatioÂ¤s that do not require rezoning-the local HfH should do the same; HfH is proposing three homes on the lot because HfH paid too much for the property; neighbors will be harmed by the subdivision; there is only room for two homes on the lot; the residence on proposed Lot 2 will be located too close to the road and too close to the southern property line and will be an eyesore; three homes is too . T I. RECORD OF PROCEEDINGS Estes Valley Planning Commission 3 March 18, 2008 dense for the 1/2-acre lot and will not blend with the neighborhood; neighbors' property values will decrease; HfH represents a worthwhile cause but made some bad decisions in the purchase of this property and is trying to cam this proposal down the throat of the neighbors in order to salvage its investment; there are critical problems with the proposal, including safety concerns. Ed Mularz/President of HfH and Matthew Heiser/Basis Architecture presented the applicant's closing remarks, summarized as follows: HfH has established a process for mentoring HfH families; two meetings with neighbors have been held by HfH and letters were sent to neighbors, asking for their participation in the selection process for the new HfH families, as well as for assistance in the building phase so neighbors can help determine the look and attributes of the new homes (siding materials, colors, etc.); some slanderous remarks have been made regarding HfH's monetary dealings and the intentions of the HfH Board; HfH is not trying to make a profit but is trying to serve the community by providing affordable housing; HfH requests that the Planning Commission consider the attainable housing incentives provided in the EVDC and apply them to this proposal; HfH searched hard for a suitable lot for this proposal; affordable housing is not obtainable at market-rate costs; no other entity is building affordable housing to meet the needs of HfH target families; the challenges to HfH development of a property would be the same at any other location in the valley; HfH requests the Planning Commission recommend approval of the proposal. The public comment portion of the meeting was closed. Commissioner Kitchen noted that some written comments from the public were received as late as 11:00 a.m. today. She requested that the public submit comments prior to the Wednesday before the Planning Commission meetings for inclusion in the informational packets prepared for the Commissioners, thus allowing the Commissioners adequate time to consider the comments. Commissioner Amos stated that he participated in development of the Estes Valley Development Code, which addresses attainable housing. At the time of EVDC adoption, few attainable homes were available in the Estes Valley. The R-1 zoning district was created to promote attainable housing because the value of land in the Estes Valley was too costly for most entities or developers to build attainable housing. Two properties have since been purchased, rezoned to R-1, and developed by HfH with no objections from neighbors. Commissioner Amos served on the HfH Board for seven years and helped with the purchase of the property under consideration. He had suggested that HfH build four residences on the lot under consideration but the HfH Board chose to propose three. He did not participate in the review of this proposal in May 2007 but is no longer on the HfH Board. He stated he had not heard anything that would justify a recommendation for denial of this project. Commissioner Amos stated he could not say that he is unbiased. Commissioner Klink requested input from Town Attorney White, who stated that per Colorado statutes, the only conflict of interest is a financial interest, which is not the case with Commissioner Amos. Commissioner Grant recused himself from commenting and voting on this agenda item due to his absence from the February 18, 2008 Estes Valley Planning Commission meeting. Commissioner Tucker stated he had voted against this proposal when it was presented in May 2007. However, HfH has since sought neighborhood involvement in the proposed subdivision through creation of a homeowners association and limiting elements of the proposed housing about which it had received complaints. He noted that there are four duplexes used for nightly rental one lot away from the proposed subdivision. HfH has made a commitment to constructing homes that look like they belong in the neighborhood and seeks neighborhood involvement in the project. The proposed density is not out of character with the neighborhood. He expressed support for the proposal. Planner Shirk and Director Joseph stated the property is currently in unincorporated Larimer County; HfH has petitioned for annexation to the Town. The annexation request, rezoning request, and subdivision plat would be reviewed by the Town Board at their April 22,2008 meeting. It is anticipated that the Town Board will be the decision-making body RECORD OF PROCEEDINGS ' 1 1 L Estes Valley Planning Commission 4 March 18, 2008 for these requests. Planner Shirk suggested that the rezoning request be conditioned on approval of the minor subdivision plat. It was moved and seconded (Amos/Tucker) to recommend approval of the request for Rezoning of Lot 1, Block 1, Ferguson Subdivision, and a Portion of the SW 14 of the NE Â· 1/4 of S25-T5N-R73W of the 6~h p.M., from A-1-Accommodations zoning to R-1-Residential zoning to the Town Board of Trustees or the Board of County Commissioners, with the findings and conditions recommended by staff, and the motion passed with Commissioner Grant abstaining. Those voting FOR: Amos, Eisenlauer, Kitchen, Tucker Those voting AGAINST: Hull, Klink . , CONDITIONS: 1. Approval of the Kundtz Minor Subdivision Plat. Commissioner Hull stated she had voted against the motion because the current zoning of A-1 would allow construction of two homes with storage sheds, which would be adequate. She expressed her support for HfH and stated her opinion that two houses would be sufficient for the lot. Commissioner Klink stated he had voted against the motion for the same reason. Commissioner Amos moved approval of the Minor Subdivision Plat. Commissioner Tucker seconded the motion with the additional conditions shown below as Conditions #3 and #4. Commissioner Amos agreed to the amended motion. It was moved and seconded (Amos/Tucker) to recommend approval of the Minor Subdivision Plat of Kundtz Subdivision, Lot 1, Block 1, Ferguson Subdivision, and a Portion of the SW 14 of the NE 1/4 of $25-T5N-R73W of the 6~h p.M., to the Town Board of Trustees or Board of County Commissioners, with the findings and conditions recommended by staff, and with the addition of Conditions #3 and #4, ' and the motion passed with Commissioner Grant abstaining. Those voting FOR: Amos, Eisenlauer, Kitchen, Tucker Those voting AGAINST: Hull, Klink CONDITIONS: 1. Approval of the Kundtz Annexation. 2. The deed restriction required by Section 11.4. E.5 shall be approved by Town Attorney White prior to recordation of the plat. 3. Habitat for Humanity of Estes Valley, Inc. shall solicit and strive to ensure neighborhood involvement in the selection of homeowners for the subdivision. 4. Habitat for Humanity of Estes Valley, Inc. shall form a homeowners association for the subdivision and, via the homeowners association documents, shall limit parking to two vehicles per lot and shall limit exterior paint and/or siding colors to muted earth tones so as to blend aesthetically with the existing neighborhood. 5. A driveway maintenance agreement shall be submitted for recording with the final plat mylar. 6. All interior drives shall be at least 20 feet deep. 7. Compliance with the following memos: , a. Mike Mangelsen to Bob Goehring dated January 22,2008. b. Jeff Boles to Bob Goehring dated January 22,2008. c. Town Attorney White dated January 21, 2008. d. Upper Thompson Sanitation District dated January 24,2008. e. Public Works dated February 6,2008 (email). 8. The driveway shall be given a formal street name. A street sign and stop sign shall be installed prior to issuance of a certificate of occupancy and shall comply with Town of Estes Park standards. 9. The final stormwater management plan and construction plans shall be subject to review and approval by the Public Works Department. .. f' 1, RECORD OF PROCEEDINGS Estes Valley Planning Commission 5 March 18, 2008 4. CONCEPT PLAN PRESENTATION, ELKHORN LODGE REDEVELOPMENT, Four Metes and Bounds Parcels (parcel identification numbers 35261-00-001, 35261-05- 046, 35261-06-001, 35252-53-018, Portion of 35261-06-001) and Outlot A, Sallee Resubdivision, 600 West Elkhorn Avenue, Zahourek Conservatory, LLC/Owner, Rock Castle Development Co./Applicant Director Joseph stated the applicant will provide a concept plan presentation for a mixed- use development on the Elkhorn Lodge property, which encompasses approximately 20 acres at the west end of downtown and an additional 40 acres on the hillside above the Elkhorn Lodge. The 40-acre parcel is currently within unincorporated Larimer County but is proposed to be annexed to the Town of Estes Park. The applicant intends to propose a planned unit development (PUD) for the property. The PUD process set forth in the Estes Valley Development Code (EVDC) provides the opportunity for a more creative mixing of uses in close proximity and provides the potential for greater flexibility in setback requirements and other dimensional standards. The PUD process envisions the proposal of a higher-quality development, with higher standards for design and for how well the proposal fits within the fabric of the existing community. In the PUD process, the burden rests with the applicant to propose a project that provides a compelling vision of desirability for the community. It is not a use by right. The package of development is rewarded for good design. Planning staff anticipates there will be a number of public hearings on this proposal, beginning with a broad description of the project and progressing through finer levels of detail as review progresses. Director Joseph encouraged the public to use the Community Development Department's web page for current information on the proposal. Comments from the public are welcome at any time during the review. Chair Eisenlauer called a five-minute recess at 2:45 p.m. to provide the applicant time to set up a visual presentation; the meeting was reconvened at 2:53 p.m. Applicant Presentation: Frank Theis, representing Rock Castle Development Company, stated this is a large, multi-use project and is very expensive. Due to the complexity of the project, the developer began meeting with town staff on a weekly basis beginning in October 2007. The PUD process includes rezoning the upper portion of the property, which is currently a mix of RE-Rura/ Estate and E-Estate zoning, as well as approval of a subdivision plat. The entire property must be zoned CO-Commercia/ Out/ying in order to be overlayed with a PUD. The subdivision plat must be approved in order for the developer to move forward with the purchase agreement for the property. Due to the complexity of the project, the concept plan will be presented at today's meeting with more detailed review, including development plans, to follow. For the April Planning Commission meeting, the applicant will provide wildlife, wetlands, hydrology, noise, fire, and other detailed studies. The proposal includes renovation of the Elkhorn Lodge, which is one of five structures on the property that are on the historic register. The lodge is in poor condition and will require significant financial investment to restore. There has been negative environmental impact to Fall River by horses kept for the riding stable at the lodge. The upper forty acres is proposed for development as a single-family residential subdivision. Mr. Theis stated the subdivision is planned with sensitivity to wildlife movement. Over 30% of this area is proposed to be set aside as open space, including the steepest portion of the property, an open-space corridor through the center, and a 50- foot buffer on all sides, which provides a 50% larger setback than is required. Multi-family development is proposed on Lot B-1, and the applicant has met with the Housing Authority to discuss the possibility of developing attainable housing on this lot. The main commercial core is proposed around the Elkhorn Lodge building, with a combination of apartment-type units and duplexes similar to those found at Mary's Lake Lodge to be constructed on the western portion of that area. These units would be RECORD OF PROCEEDINGS ' ' 1 , Estes Valley Planning Commission 6 March 18, 2008 controlled and rented through the lodge. Construction of these units and a new wing addition on the lodge would provide a total of approximately 100 accommodations units. The new wing of the lodge would include suites, a spa, and an indoor pool. The applicant proposes multi-family units along Fall River to buffer the existing single- family-residential neighborhood that adjoins the property. The applicant is requesting accommodations density for these units, which will be "high-end, apartment-type" units. A commercial, pedestrian-scale street with parking on both sides (similar to downtown Estes Park) is proposed to connect the lodge with new multi-use buildings. The multi-use buildings would provide retail space at the ground level and apartments on the second floor. A park area is proposed, approximately two acres in size, which would include extension of the riverwalk from downtown. Approximately 1,000 feet of riverwalkis proposed through the property. The applicant also proposes to restore Fall River and a wetlands area; no horses would remain on the property. A trail would connect from the riverwalk through a Town-owned, open-space property between Elkhorn Lodge and Old Ranger Drive; this trail would split into sbveral trails on the upper 40 acres (proposed single-family subdivision) and connect to the existing trail into Rocky Mountain National Park. The applicant proposes a trailhead with public parking on the Town-owned property. Mr. Theis listed the benefits to the community as: economic impacts, provision of a western bypass road, renovation of the Elkhorn Lodge, attainable housing apartments, restoration of Fall River, a new park, riverwalk, and a Deer Ridge Trail connection. The applicant proposes to construct approximately one mile of road to provide a bypass from West Elkhorn Avenue to Elm Road and has been working With the Town B6ard to determine its exact location. There are two possibilities for the terminus of the proposed bypass road where it would join West Elkhorn Avenue-alignment with James Street or alignment with Far View Drive. The developer has agreed to tonstruct the rdad through to West Elkhorn Avenue at the existing entrance to the property (currently the driveway into the Elkhorn Lodge), with the Town Board to determine to final road alignment. The developer will provide easements for both road alignments, with one to be abandoned once a determination has been made. The developer has 'met with Colorado Division of Wildlife Officer Rick Spowart. Currently the upper 40 acres proposed for the single-family residential subdivision is used for hunting. Development of the subdivision will have a negative impact on the yearly harvest. However, the applicant has provided a corridor for wildlife movement to the residential property to the east. The habitat for wildlife aldng Fall River will be enhanced; wetlands and the fishery will be restored. Mr. Theis expressed hope that the final plat will be approved by July at the latest. The first phase of the project will be development of the single-family residential subdivision (Big Bear Estates), which will provide funding to pay for road construction costs. Renovation of the Elkhorn Lodge is planned next, followed by additional single-family development, then development of Lot B-1 and Lot B-2. Road,work will begin in fall of 2008, if the final plat is approved by July. Utilities must be installed; paving would begin in summer of 2009. Development of the commercial core would be the last phase of the project and will be based on demand. Mr. Theis elitimated that development of this portion of the project will be at least four to five years in the future. Planning Commission CommenUDiscussion: Commissioner Hull stated the following: Having the bypass road completed in the first phase was one of her concerns. There is not enough parking for commercial retail; shared parking will not work because the retail businesses will be open into the evening hours in summer. Retail space on the second floor of the commercial buildings is not likely to work. Mr. Theis acknowledged that a completed parking study determined that the shared parking does not meet the required standards. He stated the Town had urged the developer to put in as much commercial space as possible and that the applicant , f' 11 RECORD OF PROCEEDINGS Estes Valley Planning Commission 7 March 18, 2008 proposes a better ratio of parking than currently serves downtown. Very little retail space is proposed on the second floor of the commercial buildings, although the second floor of those buildings will be at the same level as the main level of the Elkhorn Lodge [due to the slope of the property]. Commissioner Tucker stated that survival of retail business is based on tourists and asked what the developer would do to draw more people to town. He questioned whether the applicant had considered an ice-skating rink. Mr. Theis stated Bob Koehler (Rock Castle Development Co.) has done a lot of retail development at the national level. At one time the plans included an ice rink, but that was taken out. A private park/open space has been set aside in front of the lodge that could be used for something in the future. The biggest draw will be restoration of the Elkhorn Lodge in a first-class way, with wonderful restaurants and a really nice commercial center. The area could provide another location for conventions, although the developer does not want to compete with the existing convention center. Commission Amos noted that another recent development proposal is on hold pending design changes to accommodate wildlife. The proposed Big Bear Estates Subdivision is a dense development; he stated his desire to see more open-space corridors through this single-family subdivision to accommodate wildlife. Mr. Theis listed open areas for wildlife movement, including a corridor that is a major drainage running from northwest to southeast through the proposed Big Bear Estates Subdivision, a proposed underpass at the bypass road for people and wildlife, and the area along the river corridor. He agreed to take Commissioner Amos' comments into account. Commissioner Hull also expressed concern about the proposed density of the Big Bear Estates Subdivision. She stated Estes Valley Development Code (EVDC) Section 9.1.C provides for a process that "can relate the type, design, and layout of residential and commercial development to the particular site, thereby encouraging the preservation of the site's natural characteristics, and to encourage integrated planning..." She noted the applicant's proposed average lot size is 0.25 to 0.50 acre. The proposed 57 houses with driveways and garages on these small lots will result in a lot of paving in a small area. She acknowledged the applicant had provided open space, as per EVDC requirements, but stated her objection to such heavy development in that area. She noted that lessening of density was an issue presented at the recent joint study session with the Board of County Commissioners and Town Board. Mr. Theis stated the EVDC Section 9.1.B encourages a more efficient use of land and public services... so that resulting economies may benefit those who need homes. He also cited Section 9.3, which states the PUD-M district is intended to promote developments with a balanced mix of commercial and residential uses that provide services and employment opportunities in close proximity to residents of the district. He stated the applicant is trying to cluster development to maximize open space and meet the spirit of the PUD requirements. He stated it is very expensive to purchase the property, build the bypass road, renovate the historic lodÂ¢~e, and give a significant piece of property to the Housing Authority. He acknowledged that the developer is requesting upzoning and is seeking a balance to meet community needs. Commissioner Grant questioned.whether development of the commercial core would take place as the final phase, noting it is a significant part of the PUD. Mr. Theis stated the commercial core encompasses a large area; the Town has indicated that building permits for single-family residential development will not be issued until a certain portion of the commercial core has been developed. However, build-out of the commercial core will be based on demand. In response to additional questions from the . Commissioners, Mr. Theis stated the applicant envisions development of approximately 2,000 square feet of office space with storage units on proposed Lot 1, most of which would be rented by residents of the subdivision. This lot would be located between the single-family residential subdivision and the I-1-/ndustria/ area to the south. Prices of homes in this subdivision are planned to range between $600,000 and $700,000. Commissioner Hull expressed concern that there would be enormous homes on small lots. Mr. Theis stated the homes would be 2,400 to 3,000 square feet in size. Commissioner Grant echoed Commissioner Amos' concerns regarding wildlife corridors through the proposed Big Bear Estates Subdivision, noting the RECORD OF PROCEEDINGS ' % Estes Valley Planning Commission 8 March 18, 2008 corridor shown on the plans appears to dead-end in the subdivision. Mr. Theis contended that an access/utility easement connects to the apparent dead-end, providing a corridor up to 150 feet wide. The 50-foot setbacks surrounding the subdivision will also provide room for wildlife movement. He stated that the proposed density of the subdivision is very similar to that of Carriage Hills Subdivision and is virtually the same density as the adjacent Elkhorn Club Estates. Although the applicant had not originally envisioned attainable housing as part of the development, attainable housing was added at the request of planning staff; 30 attainable apartment units are envisioned on Lot B-1. Mr. Theis went on to state the bypass road will be a significant benefit to the community and will provide an emergency access link to downtown, which could save lives in the event of a wildfire, as well as providing a convenience to locals when summer traffic is heavy. He stated that development of a well-planned subdivision is also a benefit to the community, noting that'development of a few homes would not pay for the bypass road. He stated the applicant's traffic study indicated traffic volume on the bypass road will be very similar to that on Mall Road. Commissioner Kitchen noted that access to Elkhorn Avenue and Moraine Avenue is very difficult for large vehicles such as those that access the industrial area. Mr. Theis stated that the Colorado Department of Transportation has indicated there is currently no warrant for a traffic signal on Moraine Avenue, nor is there a warrant indicated following build-out of the proposed development. There is ongoing discussion as to whether truck traffic should be limited on the proposed bypass road. No left-turn lanes at the Elkhorn Avenue entrance or the Moraine Avenue entrance are currently warranted; they will be constructed once they are warranted. Public Comment: Linda Farrell/Adjacent Property Owner stated the proposed bypass road, bridges, and traffic lights should be in the middle of the development, not on the extremities, so as to , minimize impact to adjacent property owners. She expressed concern about impacts' to the river quality and sewer lines. Construction traffic should not use the current driveway entrance to the Elkhorn Lodge, which passes directly by her condominilim.,Parking should be kept outlying; shuttle-bus use should be promoted; tranquility should be preserved; tall structures, traffic, and noise should not be allowed adjacent to neighboring properties. The bypass road should not be extended from West Elkhorn Avenue to Highway 34; bypass users should drive west on Elkhorn Avenue; James Street and Far Viaw Drive should not be affected by the bypass. Dan -Herlihey/Town Property Owner presented six slides showing views of the area proposed for development of the Big Bear Estates Subdivision. He expressed concern that the density for these single-family lots of 14 to 14 acre is out of character with the surrounding area, noting that the applicant proposes a fourfold increase in density over what is allowed under the current zoning of the property, and concern about the visual impact of 57 homes located on a prominent ridgeline location. He also expressed concern about the alignment of the proposed bypass road and the link to Wonderview Avenue (Hwy. 34), noting that Far Vidw Drive is a minor 'road with sharp curves and steep grade, which is not designed to carry additional traffic volume. Director Joseph responded that the site is subject to ridgeline d6velopment standards, which prevent construction of buildings such that they are silhouetted against the sky. These standards also require retention of existing vegetation to provide screening'. New structures are subject to color/material restrictions to provide a finished product that blends with the natural setting. Mary Lamy/Adjacent Property Owner expressed concern that the proposed density is excessive, noting the proposed open space in the single-family subdivision is in an unbuildable area. The proposed homes clustered on tiny lots are not in keeping with the surrounding properties; parcels to the east of the proposed subdivision are all large lots. Larger setbacks should be required on the commercial lots adjoining the riparian area. She asked that the Town ensure that the developer can proceed with the proposal, given the current credit crisis. She stated the role of the Town is not to ensure the developer's bottom line-it is to consider all the people in the Estes Valley. She stated this is a huge RECORD OF PROCEEDINGS Estes Valley Planning Commission 9 March 18, 2008 tract with many uses and is a critical piece of land. Time should be taken to review the proposal; the push for approval by July is poor planning. Ron Norris/Association for Responsible Development stated ARD members have met with the developer and concerned neighbors but does not yet have a position on the proposal. The proposal has a number of desirable features, including restoration of the lodge and river, potential revenue for the town, and engagement of the Division of Wildlife to assess impact of the proposed development on wildlife. Careful consideration should be given to housing density, location of attainable housing, the amount of retail proposed, the route and steep grade of the proposed bypass road, and development of the Big Bear Estates Subdivision adjacent to the existing quarry. Special emphasis should be given to the flow of information between the multiple agencies involved in the review of this project; review should not be rushed. Sandy Osterman/Town Resident questioned how the proposed bypass road would affect downtown traffic and businesses, expressed concern that tourists would not visit the downtown area, and questioned the traffic count comparison of the bypass road to Mall Road. George Hockman/Town Resident stated if the proposed bypass road resembles Mocassin bypass, it will be inadequate for the future needs of Estes Park. The bypass should be the equivalent of a two-lane U.S. highway in terms of width, setbacks, and a maximum grade of 7%. The road should be planned first, with the remainder of the development planned around the road. A suitable bypass is more important than any other aspect of the proposal, including density and open space. Once development is completed, transportation deficiencies cannot be corrected. Ron Hinkle/Neighboring Property Owner expressed concern about the proposed bypass road, wetlands and the use of the lot identified as wetlands, and issues of runoff, flooding, and erosion of Fall River at properties downstream of the Elkhorn Lodge property. He contended there will be flooding at The Willows properties and in the Filbey Court area, noting that problems currently exist. He requested that any final approval of the proposed development address potential erosion of the Fall River bank at the bridge and potential flooding of existing residences. Regarding the extension of the bypass road to Highway 34, he stated use of Far View Drive is not an option-it is a bad rdad now. There is only one exit out of The Willows development because the east exit is gated. Verd Bailey/Adjoining Property Owner reiterated concerns expressed by Linda Farrell as noted ab6v-e. He also expressed concern about the removal of the waterfall located behind his property, noting the waterfall serves as a buffer for traffic noise and from neighbors; removal of the waterfall will devalue his property. He urged a prompt decision on the location of the river crossing for the bypass road. Marie Steinbrecher/Adjoining Property Owner expressed concern about the proposed location for attainable housing on a steeply sloped portion of the property, changing the flow of Fall River, impacts of the development on wildlife, and whether the spirit of the law is being followed. She stated neighbors' concerns are not being taken into consideration. The proposal should be considered carefully and responsibly. Other buyers are interested in purchasing the property for green development. Rob Hicks/Adjoining Property Owner stated he does not want the waterfall removed. The current driveway for Elkhorn Lodge would not make a good road. He expressed concern that the amount of traffic, which is estimated as 4,000 cars/day by 2030, would be a "lot of traffic over that road." He objected to the proposed entrance to the development [at Elkhorn Avenue] and requested that the bridge be moved to the center of the property. He asked the Commissioners to make their decision as if they lived next door to the proposed development. Dave Shirk/Neighboring Property Owner stated he will be particularly impacted by the proposed bypass road. Far View Drive was not designed for much traffic; improvements to the road will have to be made. He questioned who will pay for these improvements. He requested the Commissioners recommend installation of a traffic circle rather than a signal light at the bypass road intersection with West Elkhorn Avenue. He expressed RECORD OF PROCEEDINGS ' ' Estes Valley Planning Commission 10 March 18, 2008 support of the concept for redevelopment of the Elkhorn Lodge property; however, design guidelines should be adhered to. For instance, lighting requirements should be tightened to prohibit exposed bulbs. Heather Stone/Neighboring Property Owner stated it has been disturbing to hear there may be a concrete overpass to James Street or homes torn down along Far View Drive. She and her husband have lived here 38 years and just built their dream home-she doesn't want an overpass over her bedroom. She stated that downtown businesses may be devastated by a bypass up Far View Drive or James Street because business will be removed from the downtown area. John Spahnle/Adjoining Property Owner expressed concern about Lot B-1, which is proposed as a multi-family-residential lot that may be sold to the Housing Authority and is directly adjacent to his property. If this lot is sold to the Housing Authority, the developer will no longer control what happens on the lot. He also expressed objection to connection from the bypass road to Old Ranger Road and his desire to have that connection eliminated. He requested lighting restrictions be imposed as suggested by Dave Shirk. He I stated the proposed development will have a great deal of impact on the Elkhorn Club Estates Subdivision. Wes Allbritten/Neighboring Property Owner questioned whether the developer will be the ownedoperator of the lodge when it is complete. Mr. Theis responded, "Yes." Vee O'Farrell/Neighboring Property Owner stated if a community is not sustaining a high- quality of life, it is not desirable. He stated his belief that the proposed development wil have a negative impact environmentally and economically. He pointed out that the nearby condominiums in Fall River Village and Rivers Pointe Downtown have not sold. He urged the Commissioners to think of the community and neighboring property owners and also stated other purchasers are interested in green development of the property. Frank Theis provided concluding remarks, noting the applicant has met with neighboring property owners to discuss their concerns and has provided all studies requested by planning staff. The developer is experienced and is willing to take the necessary time to "do it right." He expressed appreciation for the time town staff has spent on this project. The applicant will hold another neighborhood meeting prior to the scheduled Planning Commission meetings in April; he encouraged the public to contact him directly via email at rockcastledevelopment@amail.corn. Director Joseph stated there will be further public hearings before the Planning Commission regarding this proposal; these hearings will be held April 15 and April 17, 2008. Chair Eisenlauer called a five-minute recess at 4:25 p.m.; the meeting reconvened at 4:30 P.m. 5. PROPOSED AMENDMENTS TO THE ESTES VALLEY DEVELOPMENT CODE, BLOCK 11 - Appeals and Vacation Home Regulations Due to the lateness of the hour, Director Joseph suggested the Planning Commission take comment from members of the public waiting to address the Commission on the proposed amendments to the development code. The staff presentation and Planning Commission consideration of the amendments will take place at a future meeting. Public Comment: Betty Nickel/The Portfolio Group stated she has designed and built custom homes for 15 years; 50% of her clients request guest houses for use by visiting relatives/guests or for use by a caretaker as they age. None have indicated they would rent the guest house for income purposes. The development code is behind the curve in terms of communities that have upscale housing because it does not allow detached dwelling units. The current review standard of "kitchen facilities" is too difficult to define. Property owners want guest 1 RECORD OF PROCEEDINGS Estes Valley Planning Commission 11 March 18, 2008 houses for privacy. The fact that a 35-acre property can't have a separate dwelling unit is outrageous. Linda Farrell/Town Resident requested a summary of the amendments regarding appeals. Attorney White explained there had recently been an appeal to the Town Board of a Planning Commission decision; however, there is nothing in the development code that specifies what the procedure for appeals is, when the appeal must be filed and will be heard, or what documents should accompany the appeal. The proposed code changes provide guidelines for these procedures. Commissioner Kitchen requested that concerns be addressed that were outlined in a letter received from Paul Kochevar. Attorney White indicated that Mr. Kochevar's concerns that the appeal process would be used to delay a project were unfounded. There is no present requirement in the Code that the Town Board set a date for review of an appeal or act within a certain timeframe; the proposed amendments specify that the appeal must be heard within 60 days. Ms. Farrell stated a short timeframe may prove to be a hardship for out-of-town property owners and requested the amendments take into account such situations. Matthew Heiser/Town Resident requested consideration of a change to the development code regarding the 80%-of-median-income standard for affordable housing. He urged the Commission to consider code standards that would allow a scale between 80% of median income up to as much as 150% of the market rate for an affordable home. Judy Anderson/Anderson Realty and Management cautioned that the proposed amendments to vacation home regulations attempt to fix things that aren't problems, such as not allowing housekeeping services in vacation homes or providing food for vacation home renters. She stated that those staying in a residence longer than a week may desire housekeeping services; vacation home guests should be able to receive a welcome basket or have a catered dinner. She expressed a desire to have all vacation homes treated equally in terms of licensing and taxes on individual residences. She stated 30% of vacation homes are rented by the property owners, who often don't conform to any of the rules-property owners should be held to the same standards as rental management companies. When asked by Commission Kitchen for her suggestions on how to enforce the regulations, she suggested additional staff time should be devoted to searching the internet to discern which homes are being rented and mailing letters to property owners outlining the applicable regulations. She stated many recent offenses could have been handled by neighbors phoning the code enforcement officer. She stated a minority of private homeowners obtain the required business license. Town Attorney White noted that a business license is required only if the property is within Town limits and stated there is no ready solution to the problem of internet rentals by non-resident property owners. Director Joseph indicated it would be possible to look at a rental property website and check whether the property owner has obtained a business license and whether the rental is in general compliance with the limit on the total number of guests allowed without having to add more town staff. Ms. Anderson stated management companies limit the total number of guests to eight people per residence, as required by the code; however, 50% of the units found on the FRBO website offer accommodations for nine to 1welve people. She questioned why there is a limit of eight guests if a residence has five bedrooms. Professional property managers require a three-night minimum stay and do not conduct nightly rentals. She stated vacation home rentals are driven by the way the public chooses to vacation. Estes Park appeals to families; it is too expensive for a ten- person family to stay in a hotel. Commissioner Tucker stated the intent of zoning is to constrain certain types of living and commercial uses in certain areas. Residential zoning districts are designed for people to live there; they are not designed for hotel use or rental use. He questioned why accommodations owners should be penalized by having to compete with residential rentals. He noted that recent complaints were made by homeowners who didn't like nightly rentals in their neighborhoods and stated he would not want nightly rental use to occur in a home next to his. He explained that his definition of the term "nightly rental" is a lodging that is paid for per night (something other than long- term rentals) and questioned whether Ms. Anderson would be willing to have private homes that are used for short-term rentals pay commercial property tax rates. She indicated she would not. RECORD OF PROCEEDINGS ' ' Estes Valley Planning Commission 12 March 18, 2008 6. REPORTS . No reports were presented; discussion regarding possible future changes to Estes Valley Development Code sections that pertain to accessory dwelling units will be held at a future Planning Commission meeting. Chair Eisenlauer adjourned the meeting at 5:00 p.m. Ike Eisenlauer, Chair Julie Roederer,.Recording Secretary '' [F Â£Â· vÂ·.7- ~ t ~ -~1~4_ ~ :â‚¬/7.~3' ,<-4 ji. ... 2 ., - ./..:I~.'4. I *I - 4 LÂ»"lacÂ· Town of Estes Park ' fl Community Development Department Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Halburnt From: David Shirk, Planner336 Date: April 22,2008 Subject: The Links of Estes Park Supplemental Condominium Map Background. This is a request for a supplemental condominium map for 4236 Trail N Ridge Units 1004 A and B of The Links of [-Le---VE,J Estes Park condominium - r Eagles -Estes Park 6 *f "RM" The Links of development. Per Colorado State 99 It) oi Landing [0 2/ law, condominium units may not be ____ ~ s~a.i finalized until construction is ~ - -~an,1 Eagle .E" 1 substantially complete, as is now the View - case with these two units. Therefore, - 7- ~ Golf Course F,1.,Â·~"~ 18 Ho~e Golf the applicant requests approval of this iff f ~ _j 'f_- "co. -4 Course supplemental map, which is consistent with the approved development plan and preliminary condominium map. Budget. N/A Action. Staff recommends approval of the proposed Supplemental Condominium Map for Unis 1004 A & B, The Links of Estes Park. Town of Estes Park Community Development Department Memo To: Honorable Mayor Baudek Board of Trustees Town Administrator Repola From: Alison Chilcott, Planner 11, and Bob Joseph, Community Development Director Date: 4-16-08 Subject: MLL-2 (Marys Lake Lodge 11) Condominiums, Supplemental Condominium Map #3, Units 26,27,28 and 29, Lots 3A and 3B, Mary's Lake Replat of Mary's Lake Subdivision, Don Debey/Applicant Background. This is a request for approval of a supplemental condominium map application for property located at 2625 Marys Lake Road. The property is located on two lots, Lots 3A and 3B of the Mary's Lake Replat. Both lots are zoned "A" Accommodations/Highway Corridor. This map condominiumizes four units in two buildings on Lot 3B, Units 26,27,28 and 29. On May 23, 2006, Town Board approved the first supplemental condominium map application. Development is consistent with approved Development Plan #00-07B. /'rr/,miricaÂ·4 Vaiy . Lul. Ri/>AV Budget. M/9 r Ld, Subd//// * ef LiA. i , 5 I QUI' I of , a Porion 4 Sed:011 2 re-ship 4 4 None. P I rt,w,1 94 .... Park I 01Â£.Â¥ Nort. RaÂ¥,ge 7.1 Ve.t ed th. fiet Â£ V &.NI 'fal 4 '.)- i ..4 Action. l f'*, >FA 1 Approval of the condominium map. SIngle-Family B 1-- N iwf " (\ - NSF 7. 5.1/ AM 4 \ Lot 7 -~L Lek> 1 KIM Or. e.= . , LOT ;A 1 Single-Family 4 & i: i'' Â¢* 4.- 4 Kiowa Ridge Subdivision 0 . A , i 1 Community Development Department Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Halburnt From: David Shirk, Plannerâ‚¬k)> Date: April 22,2008 Subject: Kundtz Annexation, Rezoning, and Minor Subdivision Background. This is a request to annex a .70-acre parcel into the Town of Estes Park. This request also includes a rezoning of the property from the current "A-1" district to the "R-1" district, and a subdivision of the parcel into three separate lots. This intention of this proposal is to provide attainable "for purchase" homes to residents of the Estes valley. The property owner and applicant is Habitat for Humanity of the Estes Valley, Inc. Rather than three separate memos, which would have significant overlap, Staff has presented the information in this single memo. In addition to this memo, the report presented to the Estes Valley Planning Commission is available at http://www.estesnet.com/comdev/CurrentRequests.aspx. Vicinity map is attached at the end of the report. Annexation. This annexation request is consistent with the inter-governmental agreement between Larimer County and the Town of Estes Park, which states "the Town agrees to consider the annexation of all properties within the unincorporated portion of the Planning Area ...of the following development applications... Applications for re-zoning." As the property is not directly adjacent to the town boundary, a "flag-pole" annexation is necessary. This would be achieved by annexing that portion of Riverside Drive from the "Trendwest" property south/west to the Habitat property, and would pass two properties zoned "A" Accommodations, both which would be subject to annexation with redevelopment. One such property is the "Manor" RV park, and the other is currently developed with two small dwellings, and has initiated two separate development proposals, both of which were withdrawn by the applicant. Rezoning. The property is currently zoned "A-1" Accommodations, and could be developed with two residential and/or accommodations units, without need for either 0 . a development plan or subdivision. These units could than be condominiumized or subdivided into multiple ownership. The applicant requests a rezoning of the property to the "R-1" residential district to allow subdivision of the property into three separate lots. The "R-1" district was created with the adoption of the Estes Valley Development Code in 2000. At that time, there were no properties that had this zoning designation. Therefore, the creation of the district anticipated the need to rezone properties to this district. This district requires properties be deed restricted as "attainable housing", intended for residents earning up to 80% of the area median income (for example, a family of four could earn up to $60,000). As noted above, the "R-1" district was adopted with the expectation that properties would be rezoned. Staff reviewed the proposed rezoning in this light, and found: 1) The site is joined on the north by property zoned "A" Accommodations, which allows high-density residential and accommodations development, as well as accessory commercial uses. The proposed Kundtz subdivision density of approximately five units/acre is less than the eight units/acre allowed on the property to the north. 2) The site is joined on the south by property zoned "A-1" Accommodations, which allows four units/acre. 3) The site itself is zoned "A-1" Accommodations, which allows four units/acre. The proposed density is 5.12 units/acre. 4) The property is located on a collector street, therefore the increase in traffic will have less impact than if it were located interior to a single-family subdivision. 5) The "R-1" district requires the lots to be deed restricted, requires owner occupancy (no rentals), and prohibits short-term (aka nightly) rentals, where the "A-1" district allows all of these. Minor Subdivision. The proposed subdivision is to divide the existing lot into three lots, all of which would exceed the minimum lot size established for the "R-1" zone district. The subdivision would also dedicate road right-of-way (netted out of land area for density purposes), build sidewalk, and provide landscaping in accordance - with standards set forth in the development code. Budget. Potential for additional road maintenance such plowing, and additional police responsibility. Community Development staff has not received any concerns expressed by Town departments. â€¢ Page 2 . Action. At their regularly scheduled February 2008 meeting, the Estes Valley Planning Commission found: 1. The applicant is in process of requesting the Town Board annex the property into the Town of Estes Park. [STAFF NOTE: Annexations are not reviewed by the Planning Commission] 2. The applicant requests a minor modification to the minimum lot width of Lot 1. This modification helps advance the goals and purposes of the Estes Valley Development Code and relieve practical difficulty in developing the site (a code change is currently under process to correct the code conflict that necessitates this request). [STAFF NOTE: This code conflict has since been corrected, and this minor modification is no longer necessary] 3. With the exception of the requested minor modification, this proposal complies with applicable sections of the Estes Valley Development Code, including Chapter 4 "Zoning Districts," Chapter 7 "General Development Standards," and Chapter 10 "Subdivisions." 4. Adequate public facilities are available to serve the proposed subdivision. 5. This request has been submitted to all applicable reviewing agency staff for consideration and comment. No significant issues or concerns were expressed by reviewing staff relative to code compliance or the provision of public services. 6. Approval of this minor subdivision will not be materially detrimental to the public welfare, injurious to other property in the neighborhood, or in conflict with the purposes and objectives of this Code. 7. This is a Planning Commission recommendation to the Town Board; Based on these findings, the planning commission voted to recommend APPROVAL of the proposed Kundtz Minor Subdivision and rezoning CONDITIONAL TO: 1. Approval of the Kundtz Annexation. 2. The deed restriction required by Section 11.4.E5 shall be approved by Town Attorney White prior to recordation of the plat. 3. A driveway maintenance agreement shall be submitted for recording with the final plat mylar. 4. All interior drives shall be at least 20-feet deep. 5. Compliance with the following memos: a. Mike Mangelsen to Bob Goehring dated 1-22-08. - b. Jeff Boles to Bob Goehring dated 1 /22/2008. c. Town Attorney White dated January 21, 2008. d. Upper Thompson Sanitation District dated January 24,2008. e. Public Works dated February 6,2008 (email). â€¢ Page 3 .. 6. The driveway shall be given a formal street name. A street sign and stop sign shall be installed prior to issuance of a certificate of occupancy, and shall comply with Town of Estes Park standards. 7. The final stormwater management plan and construction plans shall be subject to review and approval of the Public Works Department. Based on the Planning Commission recommendation, Staff recommends: 1) APPROVAL of the Kundtz Addition, Phases 1,11, and Ill; and, 2) APPROVAL of the preliminary plat and rezoning, subject to conditions recommended by the planning commission. SUGGESTED MOTIONS: I move to recommend: 1) APPROVAL of the Kundtz Addition, Phases I, Il, and Ill; and, 2) APPROVAL of the preliminary plat and rezoning, subject to conditions recommended by the planning commission. â€¢ Page 4 .. I / , \ 5.- -- ---0 ? C Ihi / / 09,3 ; f 6 (UAAOJ U!) 3659 . -- tur : -k/ ILT 22. 31 - - ,- --- - v V 4 VII 4edoid -< 0 1 1 ul_ 1 UOISIA'pqns pue 'Buluozehl 'uo!1exeuuv zipun>i (eleos oj jou dew) .. 1, RESOLUTION NO. 08-08 BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: The Board of Trustees of the Town of Estes Park, Colorado, in accordance with Section 31-12-110, C.R.S., hereby finds that with regard to the proposed annexation of the p following described area, that the requirements of the applicable parts of Sections 31-12- 104 and 31-12-105, C.R.S., have been met; that an election is not required under Section 31-12-107(2), C.R.S.; and that no additional terms and conditions are to be imposed on i the annexation. The area eligible for annexation known as "KUNDTZ" ADDITION" to the Town of Estes Park is as follows: Legal description of Kundtz Addition #1: A tract of land located in the Northeast 1/4 of the Northeast 1/4 of Section 35, Township 5 North, Range 73 West of the 6th P.M., Larimer County, Colorado, more particularly described as commencing at the Northwest corner of the Northeast 1/4 of the Northeast 1/4 of said Section, with all bearings relative to the West line of the Northeast 1/4 of the Northeast 1/4 of said Section, monumented on the North side by a 31/2" brass cap on a 2 1/2" pipe LS 15760 and on the South side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760, considered as bearing S01Â°12'49"W; thence S01Â°12'49"W 313.31' along said West line to the existing boundary of the Town of Estes Park; thence along said Town boundary S78Â°45'03"E 51.71'; thence S78Â°13'16"E 148.49' to a point on the Westerly Right-of-Way of Riverside Drive and the True Point of Beginning; thence crossing the Riverside Drive Right-of-Way N72Â°59'16"E 53.19' to a point on the Easterly Right-of- Way of Riverside Drive; thence the following five courses along the Southeasterly Right- of-Way of Riverside Drive: S16Â°08'49"E 127.74'; thence S15Â°38'05"E 128.41'; thence S03Â°29'18"E 29.66'; thence S12Â°31'40'W 146.12'; thence S59Â°01'33"W 73.53'; thence leaving said Right-of-Way N30Â°58'27"W 25.00'; thence N59Â°01'33"E 62.79'; Thence N12Â°31'40"E 131.86'; thence N03Â°29'18'W 23.49'; thence N15Â°38'05"W 125.64'; thence N16Â°08'49'W 66.22'; thence S73Â°51'11"W 31.16' to the Westerly Right-of-Way of Riverside Drive; thence along said Right-of-Way along a 60.78' long non-tangent curve to the right with a radius of 305.00'; an internal angle of 11Â°25'01", and a 60.67' long chord which bears N13Â°20'17"W to the True Point of Beginning, County of Larimer, State of Colorado, containing 0.323 acres, more or less. Legal description of Kundtz Addition #2: , .1 A tract of land located in the Northeast 1/4 of Section 35, Township 5 North, Range 73 West of the 6th P.M., Larimer County, Colorado, more particularly described as commencing at the Northwest corner of the Northeast 1/4 of the Northeast 1/4 of said Section, with all bearings relative to the West line of the Northeast 1/4 of the Northeast 1/4 of said Section, monumented on the North side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760 and on the South side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760, considered as bearing S01Â°12'49"W; thence S01Â°12'49"W 870.75' along said West line to the Northwesterly Right-of-Way of Riverside Drive and the True Point of Beginning; thence the following four courses along said Right-of-Way: along a 41.61' long non- tangent curve to the right with a radius of 355.00', an internal angle of 6Â°42'55", and a 41.58' long chord which bears N57Â°58'34"E; thence N61Â°20'01'E 188.87'; thence 225.29' along a curve to the left with a radius of 160.00', an internal angle of 80Â°40'38", and a 207.14' long chord which bears N20Â°59'42"E; thence N19Â°20'37'W 160.92'; thence leaving said Right-of-way N73Â°51'11"E 31.16'; thence S16Â°08'49"E 66.22'; thence S15Â°38'05"E 125.64'; thence S03Â°29'18"E 23.49'; Thence S12Â°31'40"W 131.86'; thence S59Â°01'33"W 62.79'; thence S30Â°58'27"E 25.00' to a point on the Easterly Right- of-Way of Riverside Drive; thence the following seven courses along the Southeasterly Right-of-Way of Riverside Drive: thence S59Â°01'33"W 230.15'; thence S56Â°43'12"W 47.92'; thence N01Â°12'49"E 2.36'; thence 242.24' along a non-tangent curve to the left with a radius of 208.50', an internal angle of 66Â°34'03", and a 228.85' long chord which bears S17Â°15'36"W; thence S16Â°01'26"E 161.93'; thence N89Â°24'43"E 15.28'; thence S01Â°12'06"W 142.75'; thence leaving said right-of-way N89Â°00'59'W 24.98' to the westerly right-of-way of Riverside Drive; thence along said westerly right-of-way the following five courses: N01Â°12'O6"E 142.06'; thence S89Â°24'43"W 31.78'; thence N16Â°01'26"W 150.88'; thence 321.34' along a curve to the right with a radius of 248.50', an internal angle of 74Â°05'23", and a 299.42' chord which bears N21Â°01'16"E; thence along said west line N01Â°12'49"E 16.46' to the True Point of Beginning, County of Larimer, State of Colorado, containing 1.023 acres, more or less. Legal description of Kundtz Addition #3: A tract of land located in the Southwest 1/4 of the Northeast 1/4 of Section 35, Township 5 North, Range 73 West of the 6th P.M., Larimer County, Colorado, more particularly described as commencing at the Southwest corner of the Northeast 1 /4 of the Northeast 1/4 of said Section, with all bearings relative to the West line of the Northeast 1/4 of the Northeast 1/4 of said Section, monumented on the North side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760 and on the South side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760, considered as bearing S01Â°12'49"W; thence S89Â°24'43"W 25.00' to the westerly Right-of-Way of Riverside Drive and the True Point of Beginning; thence along the westerly Right-of-Way of Riverside Drive S01Â°12'06"W 142.06'; thence leaving said Right-of-Way N89Â°00'59"W 210.42'; thence N01Â°22'44"E 99.93'; thence N01Â°28'14"E 36.37'; thence N89Â°24'43"E 210.04' to the True Point of Beginning, County of Larimer, State of Colorado, containing 0.672 acres, more or less. .. DATED this day of ,2008. TOWN OF ESTES PARK Mayor ATTEST: Town Clerk ORDINANCE NO. 04-08 AN ORDINANCE APPROVING THE ANNEXATION OF CERTAIN TERRITORY TO THE TOWN OF ESTES PARK, COLORADO, TO BE KNOWN AND DESIGNATED AS KUNDTZ ADDITION P HAS E 1, 11 AN D 111 BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: Section 1. That a Petition for Annexation, together with four (4) copies of the plat of said area as required by law, was filed with the Board of Trustees on the 11 th day of December, 2008 by the landowners of one hundred percent (100%) of the area and owning one hundred percent (100%) of the area, excluding public streets and alleys of the area hereinafter described. The Board, by Resolution at its regular meeting on the 22nd day of January, 2008, accepted said Petition and found and determined that the provisions of Section 31-12-107(1), C.R.S., were met; and the Board further determined that the Town Board should consider the annexation plat on Tuesday, April 22,2008 at 7:00 p.m. in the Municipal Building for the purposes of determining that the proposed annexation complies with the applicable provisions of Sections 31-12-104 and 31-12-105, C.R.S., and is considered eligible for annexation. Section 2. That the Notice of said hearing was given and published as provided in Section 31-12-108(2), C.R.S. Section 3. That the hearing was held pursuant to the provisions of Section 31-12- 109, C.R.S., on the 22nd day of January, 2008. Section 4. That following said hearing, the Board of Trustees adopted a Resolution determining that the proposed annexation met the requirements of the applicable parts of Sections 31-12-104 and 31-12-105, C.R.S.; that an election was not required under Section 31-12-107(2), C.R.S.; and that no additional terms or conditions are to be imposed upon said annexation. Section 5. That the annexation of the following described area designated as KUNDTZ ADDITION to the Town of Estes Park, Colorado, is hereby approved: Legal description of Kundtz Addition #1: A tract of land located in the Northeast 1/4 of the Northeast 1/4 of Section 35, Township 5 North, Range 73 West of the 6th P.M., Larimer County, Colorado, more particularly described as commencing at the Northwest corner of the Northeast 1/4 of the Northeast 1/4 of said Section, with all bearings relative to the West line of the Northeast 1/4 of the Northeast 1/4 of said Section, monumented on the North side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760 and on the South side by a 3 1/2" brass cap on a 2 1/2" pipe LS .. 15760, considered as bearing 601Â°12'49"W; thence S01Â°12'49"W 313.31' along said West line to the existing boundary of the Town of Estes Park; thence along said Town boundary S78Â°45'03"E 51.71'; thence S78Â°13'16"E 148.49' to a point on the Westerly Right-of-Way of Riverside Drive and the True Point of Beginning; thence crossing the Riverside Drive Rigbt-of-Way N72Â°59'16"E 53,19' to a point on the Easterly Right-of- Way of Riverside Drive; thence the following five courses along the Southeasterly Right- of-Way of Riverside Drive: S16Â°08'49"E 127.74'; thence S15Â°38'05"E 128.41'; thence S03Â°29'18"E 29.66'; thence S12Â°31'40'W 146.12'; thence S59Â°01'33"W 73.53'; thence leaving said Right-of-Way N30Â°58'27'W 25.00'; thence N59Â°01'33"E 62.79'; Thence N12Â°31'40"E 131.86'; thence N03Â°29'18"W 23.49'; thence N15Â°38'05"W 125.64'; thence N16Â°08'49"W 66.22'; thence S73Â°51'11"W 31.16' to the Westerly Right-of-Way of Riverside Drive; thence along said Right-of-Way along a 60.78' long non-tangent curve to the right with a radius of 305.00', an internal angle of 11Â°25'01", and a 60.67' long chord which bears N13Â°20'17"W to the True Point of Beginning, County of Larimer, State of Colorado, containing 0.323 acres, more or less. Legal description of Kundtz Addition #2: A tract of land located in the Northeast 1/4 of Section 35, Township 5 North, Range 73 West of the 6th P.M., Larimer County, Colorado, more particularly described as commencing at the Northwest corner of the Northeast 1/4 of the Northeast 1/4 of said Section, with all bearings relative to the West line of the Northeast 1/4 of the Northeast 1/4 of said Section, monumented on the North side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760 and on the South side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760, considered as bearing S01Â°12'49"W; thence S01Â°12'49"W 870.75' along said West line to the Northwesterly Right-of-Way of Riverside Drive and the True Point of Beginning; thence the following four courses along said Right-of-Way: along a 41.61' long non- tangent curve to the right with a radius of 355.00', an internal angle of 6Â°42'55", and a 41.58' long chord which bears N57Â°58'34"E; thence N61Â°20'01'E 188.87'; thence 225.29' along a curve to the left with a radius of 160.00', an internal angle of 80Â°40'38", and a 207.14' long chord which bears N20Â°59'42"E; thence N19Â°20'37"W 160.92'; thence leaving said Right-of-way N73Â°51'11"E 31.16'; thence S16Â°08'49"E 66.22'; thence S15Â°38'05"E 125.64'; thence S03Â°29'18"E 23.49'; Thence S12Â°31'40"W 131.86'; thence S59Â°01'33"W 62.79'; thence S30Â°58'27"E 25.00' to a point on the Easterly Right- of-Way of Riverside Drive; thence the following seven courses along the Southeasterly Right-of-Way of Riverside Drive: thence S59Â°01'33"W 230.15'; thence S56Â°43'12"W 47.92'; thence N01Â°12'49"E 2.36'; thence 242.24' along a non-tangent curve to the left with a radius of 208.50', an internal angle of 66Â°34'03", and a 228.85' long chord which bears S17Â°15'36"W; thence S16Â°01'26"E 161.93'; thence N89Â°24'43"E 15.28'; thence S01Â°12'06"W 142.75'; thence leaving said right-of-way N89Â°00'59"W 24.98' to the westerly right-of-way of Riverside Drive; thence along said westerly right-of-way the following five courses: N01Â°12'O6"E 142.06'; thence S89Â°24'43"W 31.78'; thence N16Â°01'26"W 150.88'; thence 321.34' along a curve to the right with a radius of 248.50', an internal angle of 74Â°05'23", and a 299.42' chord which bears N21Â°01'16"E; thence along said west line N01Â°12'49"E 16.46' to the True Point of Beginning, County of Larimer, State of Colorado, containing 1.023 acres, more or less. Legal description of Kundtz Addition #3: A tract of land located in the Southwest 1/4 of the Northeast 1/4 of Section 35, Township 5 North, Range 73 West of the 6th P.M., Larimer County, Colorado, more particularly described as commencing at the Southwest corner of the Northeast 1/4 of the Northeast 1/4 of said Section, with all bearings relative to the West line of the Northeast 1/4 of the Northeast 1/4 of said Section, monumented on the North side by a 3 1/2" brass cap on a 2 1/2" pipe LS 15760 and on the South side by a 31/2" brass cap on a 2 1/2" pipe LS 15760, considered as bearing S01Â°12'49"W; thence S89Â°24'43"W 25.00' to the westerly Right-of-Way of Riverside Drive and the True Point of Beginning; thence along the westerly Right-of-Way of Riverside Drive 601Â°12'06"W 142.06'; thence leaving said Right-of-Way N89Â°00'59'W 210.42'; thence N01Â°22'44"E 99.93'; thence N01Â°28'14"E 36.37'; thence N89Â°24'43"E 210.04' to the True Point of Beginning, County of Larimer, State of Colorado, containing 0.672 acres, more or less. Section 6. The Town of Estes Park, Colorado, hereby consents, pursuant to Section 37-45-126(3.6) C.R.S., to the inclusion of lands described above into the Northern Colorado Water Conservancy District and the Municipal SubDistrict, Northern Colorado Water Conservancy District. Section 7. This Ordinance shall take effect and be enforced thirty (30) days after its adoption and publication. PASSED AND ADOPTED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO, THIS DAY OF ,2008. TOWN OF ESTES PARK Mayor ATTEST: Town Clerk I hereby certify that the above Ordinance was introduced and read at a regular meeting of the Board of Trustees on the day of , 2008 and published in a newspaper of general circulation in the Town of Estes Park, Colorado, on the day of , 2008, all as required by the Statutes of the State of Colorado. Town Clerk 4 . ORDINANCE NO. 5-08 AN ORDINANCE AMENDING THE ESTES VALLEY DEVELOPMENT CODE TO REZONE A PORTION OF FERGUSON SUBDIVISION WHEREAS, the Estes Valley Planning Commission has recommended rezoning Lot 1, Block 1, Ferguson Subdivision, & a Portion of the SW 1/1 of the NE 1/1 of S35-T5N- R73W of the 6th p.M from "A-1" Accommodations to "R-1" Residential; and WHEREAS, the Board of Trustees of the Town of Estes Park has determined that it is in the best interest of the Town that the recommended zoning change be granted. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: Section 1: The zoning for Lot 1, Block 1, Ferguson Subdivision, & a Portion of the SW 14 of the NE 14 of S35-T5N-R73W of the 6th p.M shall be changed from "A-1" Accommodations to "R-1" Residential. Section 2: This Ordinance shall take effect and be enforced thirty (30) days after its adoption and publication. PASSED AND ADOPTED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO, THIS DAY OF ,2008. TOWN OF ESTES PARK Mayor ATTEST: Town Clerk I hereby certify that the above Ordinance was introduced and read at a regular meeting of the Board of Trustees on the day of ,2008 and published in a newspaper of general circulation I the Town of Estes Park, Colorado, on the day of , 2008, all as required by the Statutes of the State of Colorado. Town Clerk %EMIBBITIER 1 011 APR 0 1 onfill | 2_%2023 , ,/ 1, 4 1 LUUU L By : ..,frirÂ« 4-174-242_ AL:-cloÂ« mQi*Â» -b_Â«0__82 1- Raut _ _ A rl __- __Illf-V\ A -TU O 7 nt) _ Aen.2-8 - - - 4' -r= IMACAÂ£@131 ---*---_---- ---- ----Ukj@iÂ»a---t.3-2-- uj-9- 71-:---*-- -1&3 7-in , -,ctieD--4-oR_ 00>-a./1---Â£;i,J u-ya.21._tA<- l/LU'y-\Al.6-Wi.-1 "4_ -~eÂ®i41.aA=k- _-Â£Q.~_to J D - A C -79 (Uke,11Â¥__12aunL~ .flit:Â£*2%,-.4-4.2,.___Pi .'# - .F-60 ~-1---Uk--- --__-- I *,3,#/-1i)-----)--- A-).2e.*~te.. --.-DuL ~,vÂ©--2.2.p--6 -<445.446.,3/6Â« -/taÂ«--4-294.ide_, RtuÂ«U-P 61 _-. -.-_ _-_ -.- 1 --AU# R LalÂ£Â£ â‚¬20___44Â«24__022 1, Â¤01,7,1 -/9 ~ v J.4.1.4-ee E 23-l__ Rila_dil04 01 -, I . + 3 17 F rn [Â¢ 3 0 Li li-G Â·i li ~ ~~ APR 2 21 2008 1.~ April 22,2008 To: The Town Board IL-- This letter is regarding the review of the next Habitat for Humanity of the Estes Valley housing project. Where would I be now without my Habitat house? Maybe I would have moved down to the valley (like many people I know), or maybe I would still be struggling to make ends meet here in Estes Park (like many people I know). But I have been blessed with a beautiful home, that my family, friends and volunteers put over 2000 hours of work into. My experience with Habitat was life changing. These people opened their hearts and cared about my family. They have become our friends that we will never forget. I will never understand the reasoning to stop Habitat from helping people. The only real issue should be what is respectful to the piece of land at hand, keeping in mind that the purpose of Habitat is to build affordable homes in Estes Park. That job is not easy. And then there are others who would rather bash habitat homeowners. I have lived in Estes Park for over 20 years! I am respected by many people in this town, and I refuse to let anyone judge me, my children, or my fellow neighbors. We are being looked at under a microscope, should we be doing this to every family that would like to own a house in-Estes park? It is sad that such a great experience with Habitat for Humanity can be turned around to make me feel less than any of you. I urge you to be fair in your decisions. We pay our mortgage every month, give our children as many opportunities as we can, volunteer at school, work numerous jobs, and we love Estes Park! Please help further Habitats goals in providing affordable housing that this town needs! Thank you for your time. Sincerely, 4/clar> 110 Becka Carlson Habitat Homeowner and Estes Park Resident i. - Habitat for Humanity *1~ of Estes Valley RO. Box 2745 Estes Park, CO 80517 (970) 586-8301 Town of Estes Park Trustees' Meeting, April 22,2008 At this time the developer usually presents his plans, but The Habitat for Humanity of Estes Valley Board members are really stewards for the developer. The "developer" is actually the community throughout our valley, who continues to support the Mission of Habitat: To build simple, decent affordable homes for working families here. The Town of Estes Park has continually supported the Habitat mission and for that we and the community are very grateful. In the fourteen years of our efforts here in Estes Park, Habitat has built 11 privately owned homes. Our Habitat organization continues to work with these families to ensure them to be successful homeowners and good neighbors. In the last six months especially, we have renewed our efforts to guide and direct them in terms of keeping up their property and good fiscal management practices. We will continue to do so, including the partnering of another Estes family with each Habitat family. This proposal for the Riverside Subdivision will enable us to construct the next three homes. We have communicated with the neighbors and have invited their participation in the planning: To be pan of the valley-wide selection committee for the new families; and to be part of the building committee to determine the look and attributes of the new homes. We will continue to have the neighbors involved throughout the construction process. During this time the 30 Habitat affiliates in Colorado are celebrating Habitat Builds Colorado. This year it is anticipated that Habitat will give 125 low- income families in Colorado new home ownership, and by the end of the year we will celebrate the 1000'h Habitat home built in Colorado. Our Estes Valley Habitat is eager to be a part of these efforts. Only with the approval of the Town of Estes Park Board of Trustees can we proceed with the construction of these additional attainable/ affordable homes for deserving families in our town. Thank you, Ed Mularz, President Habitat for Humanity of Estes Valley * .. Finance, Light & Power, Water Departments Memo To: Honorable Mayor Pinkham Board ofTrustees Town Administrator Halburnt From: Steve MeFarland, Finance Officer Date: April 22,2008 Subject: 1st Quarter Financial Report Background Attached please find the first quarter 2008 "dashboard" financial report. Documentation/explanation The expenditure categories used in the General Fund box are not identical to the way items are reported in the budget. The categories in this report are in line with GFOA recommendations, but I thought it might be useful to report how the General Fund departments correspond to the attached report: General Government: Legislative (1100), Judicial (1200), Executive (1300), Elections (1400), Finance/Admin (1500), Community Development (1600), Buildings (1700), Employee Benefits (1800), Subsidies/Grants (1900), Transportation (5600). Public Safety: Police (2100,2155,2175), Fire (2200), Protective Inspections (2300). Engineering/Public Works: Engineering (2400), Streets (3100). Culture/Recreation: Parks (5200). Other revenues include all of non-sales tax revenues in the General Fund, the largest ofwhich include property tax, use tax, franchise fees, interest, PILOTs, and business and liquor licenses. .. The General Fund box reports revenues at 11.3% of budgeted levels. February sales tax figures are not included in the totals because the financial reports are issued before we receive the February numbers. With February included, revenues would be about 14% ofbudget. Expenditures are currently at 24.5% ofbudget, on target with the calendar year. General government expenditures are running slightly higher (29.9%) than target because subsidies/grants (approximately $320,000) are distributed mostly in the first quarter. The Sales Tax box reports 1st quarter numbers in italics, as March is an estimate (average of 2005- 07). Ifthe -$309,000 estimate for December proves to be reasonably accurate, sales tax revenues will be at 12% of revised budget. The 12-13% positioning is in line with historic trends that allow for budget realization. Further details on 2008 sales tax data will be reviewed in the May 20,2008 Town Board Meeting, schedule pennitting. The Enterprise Funds box (see supporting pages for Light & Power and Water Fund breakdowns) shows that enterprise funds revenues are at 20% of budget. The Water loan ($4,900,000) is skewing the data to the downside, and it should be noted that the 27.9% utility sales figure is beyond expectations. Expenses are uniformly under budget as well. The Investments box has been retooled to show investments by type of fund. The pension funds are managed by a third party (actually, only the Fire Pdnsion is managed by a third party, but accounts for 99.4% of the Pension Funds' assets). EPURA investments reside in a ColoTrust money market account and are not mingled with Town investments. The bond issuance is listed separately due to its size. I have added some market indicators as well as the prevailing money market fund rate. We have been fortunate this quarter to have our investments sheltered in conservative modes. Action steps requested None. â€¢ Page 2 .. A. 8..g . %1.- 9 iI. 2 : Â· J Â·2 A.: Â· ... .. .Â· ~ '1 Â·. I:Â§ U 00 44 -3- L 16 0 $ ... . I ./ . B:">34: f -t 4/ .Â·-ir . A. .....Ul' ret 4434 .Â·49.*-0. ' r ..4 HO Â·f: '.jÂ·~..h:...:' 1 f Â· 96Â·1 1 2-49 ..#::721'174. ' 4......... 4.Â·flÂ· 4 44 , It, 4 9% I t -...b f Â·Â· 11 Â· 471 - 2. /Â·2 : 274 ..Â·M I :4Â·9 9: B. I .... I...: t. 4 Â»:V..437Â¢42A 4. 7:5 - .9/ : hz .3& A. t. i st Quarter 20 130!JJO eoueu!:I - puepe:pv\I GAelS Financiai Uod 43 5 0 2 0 0 2 0 2 2 2 < 0 12 22%334 1 8 h i 3 3 i 4&0242Â· . - \0 1 00 95 822 E 388=&Â°== 5 3 29 R: 'r) 96!1. 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O 28 .2 9* 1E Am=b C 0:2 W b + 41 92 ag UD . & 2 0 4 @ 84 A N : 4 8 1 2 83 2 0 8 Â© te EMENUE:1&96 04 Et t ~ k -3 ts *81% ..0-0, r= - 32 1 i 0 11 =0= /5Jt6 5 LZENCE:*3% my 1114 4 gu , Z - 4 01 4 1 48 ES A 0 0 0.**Â£ 02 W Â£4Â£Â£0Â£% l.0 M =m 22%40,4% M g --- + R 0 7 %* 9 3 5 2 $ - 1 E 9 00 0\ m 4,94 2 N rn. - %0 0- 0\ 64 Q m R - N D a "4 4% =V 4 4 00 1- Ch t- 01 M P 4 Nfl :3 A . . 2. * > 8 (2 9 -0 2.m E Z' bo 5 Â·9 w m rj 5% c N @23.8 & Mto c U , 86&-*b > g ~ % A 413 cooee WEACE,2 MOA,#looke, 1.2% %I-OI- (LOO'969'I$) EISVE[NOEICI/SISVErHONI laN 913 CZ OZÂ¢8+I'ZI t,9I'IL6'Z SHSNEIWXH 'IV1O1 CIAL INDI 21.8% nterprise 29.0% NUES 11.3% 958'590'4 Â£Lt'6I8 LIE'+68 9002 59L't,85' I LLO'504 *60'8 IO'I 7.Lt'EZI 000'05 000'ooz 000'ooz VHfldR- 1 anG/al.A 6 16 I XVi SVEIVS E'Z IZO'Â£69 GENERAL FUND 98'8ZL FO I89'469 8002 650'L98 LOOZ Aluo 80 uef sapnlou!* e MO M 00 ON - e 04 00 01 Vt h r-- C 22 9000 Ch el roUC<- 004 74 04 C\]C M -rot N h Cl ~1 0 N re; CAh Ch-C N 0 00 9 h 914 Ch M U â‚¬9 00 r =1~ 4-7 r en C- 8 #40 err- 25 92 0- -M =21 E 0 2 2 00 1 3 -U 63 0 G O O 65 2 to-Date budget Year-to-Da e 65I'I0Â£$ 991$ Â£9*'90*'L$ 6LI'9EL 3 90Â£'9~ *It'LfL'Â£ Â£Ld'*83 I I9'LOO'I spung @sudi II6'IIÂ£'I %Â£' I Lti'CLE'I 88*291'ZI S flNE[AERI 'IVI OU FL /07 -/*'-111 -77--Cl --: 2008 % of REVENUES eneral Government SE[SNE[dXH . r- 0 0 C 1/ 0 M C %3 i tr)-Me O(noot-2:th 4 G Q c< MGod* Cl - 40 N 01 - M - 0 0 2 2 2 2 22222*2 1 . . . . - . - - . . . 11 â‚¬ 2- 6 M ouu v 0 2 i g .9 4 00 99 0 Z >. Mr, E 25 8 Â£ 9 )5 : fl 3 11 M E C. 26 3 :U M 4 + 8.0 8 Et 85 COE 8 2% 25 (3 Ze li (EN (3 jm Budget Year-to-Date b Year-to-Date $10,686,947 $3 205 166 30.0% $2,953,734 SOI'LS 9*8 IEI 845'ISI OOL'SI *Of *Z 9*0'LLâ‚¬ 6â‚¬52Â£0'â‚¬ Â£â‚¬* 49â‚¬ Â£ IZZ'65Â£'II 8Â£0'Z9Â£'I %I'6I I fE +86 ftf'Â£9Ik 017 I 'tâ‚¬ Â£ %5*01 980 99Â£ L6Z'Z8L'I LBE'ZSI I 9L L5 I Iii'9IL Â£99'09Â£ 35Â£ 81Â£ 800'568'I 9Â£8'593 6â‚¬f ZLE 06â‚¬'806 lnC) SIOJSUBLL OEL'69 399 I Of 690' I 80'L *89'17Â£5'Z IfS OIS E 645'90Â£'SI SE[SNE[dXE[ E[ViO,L SSI'Â£05$ %9.ZI- 368'Â£58$ (8ZE'Z,176'9$) E[SVERIOEIG/ZISVEDIONI laN ENTERPRISE FUND S 1 st QUARTER 2008 LIGHT AND POWER 2008 2008 for Services 113,680 13 017 8 000'09L 11& Gy:? Ut. 5 0 49,4: 1 M #17% 10:4 Â£*l t t .0 \0 \0 .0 .0 222222 2 6% O. O/ O. O/ -50 9 0! 0% ~ th 1 9 1 1 1 1 - X t - 0 ch 00 ch O h 00 0 en N M co 06 33:WS & p<M 40(9(Ne\1- 42 r./ >Kit, ~ 00 M R i e :** tilt Â·f}ti~ t 0 4,&%it < y. 022 1%#<4} N *Â«. -+42 - - '444?<.': 2 t 44*> {i.,4/ 55 M V &.. m t. i Â£/ -D / 4' 23? W eÂ¢* Â·vÂ· Â«bk >2}*~il : P:>I ':* >b ~|~ 01> 0 CO 24 Ca . 43% W t g O 8 1 CO w #*40 7 h & E *89ew-@co.1 426.1%0.. w = ~ 4 M h * 5 2 E 16 1& 1Â£ >E=N 4 0 5 30 3 -0 U 04 d 47 NOU65 W >< Ul A-4 C O<O U 41 ./ ': ly#ya ., 28Â§ % 0 4% 24: 48% i 40*'*'Â·9â‚¬5.7.f'' fi'9.*632.%4 rÂ· 4-fÂ·,> Â·~ . 'Â· $2,645,554 $511,598 $484,584 IL9'Â£IZ 908'I 5 000' I Â£9 SOOPLIOS 103 I I I'08 Zâ‚¬6'95 090'0*I Z96'SL *L8'60I 095'09I Iâ‚¬I'SOI 5LS'ZZI ZO I'909 UO!le IOL'I9I 969'LOZ 89*'L88 09Â£' I g 9Lf'9L OLI'IVE SlunoooV .I OOL' I 6 OLO'St I 9II'LLI'I gOE'SE 9+I'ZZ 1 III 'Ot~L LEL'SI % IOZ 9176'6 I IZE'66 lnO S.IOJSUBIi SU 8+9'173 9/6//0 IOL'SI 595'686'f fft'095 ESL'SEL Â£IÂ£'I00'6 SEISNE[dXH T/101 9I9't,I EgE'lâ‚¬ 9Z9' I I 6'1, (spooooidueoI sopnpuD snopuenoo f Year-to-D Year-to-Dat Z86'Z6L 889'Â£*9 0Â£Z'BEâ‚¬'8 WATER .. IMU TOWN of ESTES PARK ESTES PARK Utilities Department COLORADO INTER-OFFICE MEMORANDUM DATE: April 22,2008 TO: Town Board FROM: Bob Goehring SUBJECT: System Development Fee Background: All new customers who request water service are required to pay Connection Charges (tap fees). These one-time charges are a way for the utility to recover a part of the cost for constructed system capacity and water rights obtained for new customers. There are two components within the Town's Connection Charge: a System Development Charge (SDC), and a Water Rights Fee. The current SDC has not changed since 1995 and is currently $1840. The water rights portion of the Connection Charge was reviewed in 2003 by Black and Veatch and was increased from $2000 to $5400. The Black and Veatch study also recommended that the charge for water rights be reviewed annually -and.adiusted.if_necessary-using-the-attached_Black=and Neatch annual_Water Rights_Eee_calculation (Attachment , A). In 2007, HDR Engineering (HDR) was hired to review the Town's SDC and make recommendations. The entire DR study entitled Water System Development Charges and Water Rights Fees available on the Town's ebsite at: www.estesnet.com. The SDC developed by HDR in this report is based on the planning and engineering design criteria of Estes Park's water system, the actual cost of the existing assets, future capital improvements related to growth, and "generally accepted" ratemaking principles. This report from HDR recommends increasing the Town's SDC from $1,840 to $4,940. All other rate classes would be calculated from the SDC. Adoption of the new SDC will provide multiple benefits to Estes Park Water Department in creating equitable and cost-based charges for new customers connecting to Town's water system. Cost / Budget: NA Action: Staff recommends adopting the rate increases proposed in the HDR report titled Water Syslem Development Charges and Water Rights Fees, dated December 2007. Because it has been thirteen years since the last system development fee increase, it will take a large increase to bring the System Development Fees in line with the study. Attached are two exhibits that demonstrate two different ways to phase in the System Development Fee increase. Attachment 8 represents the method proposed by HDR. This method involves only one rate increase in 2008. Attachment C represents the rate increase recommended in the HDR report, spread out over three years: 2008,2009, and 2010. The attachment approved by the Board will be renamed Exhibit A and will be included in the attached ordinance (Attachment D). Staff also recommends adiusting the SDC each January by an escalation factor to reflect the cost of inflation. taff will use the Engineering News-Record (ENR) Construction Cost /ndex, which tracks changes in construction costs for utility proiects. The ENR is determined each January based on the previous year's interest and inflation. For example, the ENR increase amount for 2007 was 3.6%. If either of the rate increase options presented is approved, the ENR increase will be applied each January to help keep rates current. - Attachment A Black & Veatch Annual Water Rights Calculation Colorado Big Thompson Water Rights Assumptions: Annual ERU Usage (acre/feet) [1]: 0.22 Loss of water in distribution system [2]: 16% Expected yield of Colorado Big Thompson (CST) Water units [3]: 62% CST price per unit 2002 $11,150 Cost escalated per SLS inflation from 2002 [4] 1.16 Escalated CST cost per unit $ 12,900 - _CBLWater Rights Calculation: [1]/(1-[2])x 1 /.6241 2,900 $5,450 tes: [1] From Exhibit 1: gallons/day/ERU times 365 divided by 325,851 gallons =annual acre fee/ERU [2] Losses from 2000 to 2006 averaged 16%, per Public Works 2006 Water Audit (AWWA file). [3] Town of Estes Park Water Rights Summary Oct. 3,2006 update provided annual average allocation of .62. This is in line with standard average of 60 to 70 percent (Jerry Kenny, HDR water rights expert). [4] Using the September 2007 CPI All Urban Consumers Index - All U.S. cities. .. Atiachment B TOWN OF ESTES PARK CURRENT AND PROPOSED CONNECTION CHARGES (TAP FEES) February 2008 RESIDENTIAL Existing Proposed 1 ERU (Equivalent Residential Unit) Water SDCs (PLANT FEE) $1,840 $4,940 Water Rights Fees $5,400 $5,450 Total $7,240 $10,390 MULTI-FAMILY Existing Proposed .70 ERU Water SDCs (PLANT FEE) $1,288 $3,460 Water Rights Fees $3,780 $3,815 Total $5,068 $7,275 :COMMODATIONS Existing Proposed .60 ERU Water SDCs (PLANT FEE) $1104 $2,965 Water Rights Fees $3240 $3,270 Total $4,344 $6,235 COMMERCIAL (NON- Existing Proposed ACCOMMODATIONS) 5% per fixture unit Water SDCs (PLANT FEE) $92 $247 Water Rights Fees $270 $275 Total $362 $522 Minimum (>11 Fixture Units) $2,300 $3,270 .. 4Â· Attachment C TOWN OF ESTES PARK PROPOSED CONNECTION CHARGES (TAP FEES) Feb-08 RESIDENTIAL Existing Proposed Proposed Proposed 1 ERU (Equivalent Residential Unil) 2008 2009 2010 Water SDCs (PLANT FEE) $1,840 $2,873 $3,907 $4,940 Water Rights Fees $5,400 $5,450 $5,450 $5,450 Total $7,240 $8,323 $9,357 $10,390 MULTI-FAMILY Existing Proposed Proposed Proposed .70 ERU 2008 2009 2010 Water SDCs (PLANT FEE) $1,288 $2,011 $2,735 $3,458 Water Rights Fees $3,780 $3,815 $3,815 $3,815 Total $5,068 $5,826 $6,550 $7,273 ACCOMMODATIONS Exisling Proposed Proposed Proposed .60 ERU 2008 2009 2010 Water SDCs (PLANT FEE) $1,104 $1,724 $2,344 $2,964 Vater Rights Fees $3,240 $3,270 $3,270 $3,270 ,Total $4,344 $4,994 $5,614 $6,234 COMMERCIAL (NON-ACCOMMODATIONS) Existing Proposed Proposed Proposed 5% per fixture unit 2008 2009 2010 Water SDCs (PLANT FEE) $92 $144 $196 $247 Water Rights Fees $270 $275 $275 $275 Total $362 $419 $471 $523 Minimum (>11 Fixture Units) $2,300 $2,662 $2,993 $3,328 .. AHachment D ORDINANCE NO. 06- 0% AN ORDINANCE AMENDING CONNECTION CHARGES FOR CONNECTION TO THE TOWN OF ESTES PARK, WATER ACTIVITY ENTERPRISE FACILITIES WHEREAS, the Town of Estes Park, through its Water Activity Enterprise, owns and operates its municipal water system; and WHEREAS, a system development charge and a water rights fee are the two components of the connection charge for connection to the water system being; and WHEREAS, the system development charge portion of the connection charge has not been changed since 1995 and the water rights portion of the connection charge has not been changed since 2003; and WHEREAS, increases to the connection charge have been recommended by HDR Inc., the Town's water system consultant, to reflect the actual cost of the existing physical assets of the system, reflect the current value of the water rights, and provide funding for necessary future capital improvements related to growth; and WHEREAS, the new connection charges will create an equitable and cost based charge for new customers connecting to the Town's water system. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO. Section 1: The connection charges set forth on Exhibit A are hereby adopted and made part of the Water Rate Schedule pursuant to the provisions of Section 13.32.010 of the Municipal Code. Section 2: The connection charges set forth in Exhibit A shall be effective June 1, 2008. Section 3: This ordinance shall take effect and be in force 30 days after its adoption and publication. PASSED AND ADOPTED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO, THIS DAY OF ,2008. TOWN OF ESTES PARK By: Mayor ATTEST: Town Clerk .. . ' ' I hereby certify that the above Ordinance was introduced and read at the meeting of the Board of Trustees on the day of , 2008, and published in a newspaper of general circulation in the Town of Estes Park, Colorado, on the day of ,2008. Town Clerk . A Â» Exhibit A TOWN OF ESTES PARK CONNECTION CHARGES (TAP FEES) effective 6/1/2008 RESIDENTIAL 2008 2009 2010 1 ERU (Equivalent Residential Unit) Water SDCs (PLANT FEE) $2,873 $4,047 $5,263 Water Rights Fees $5,450 $5,450 $5,450 Total $8,323 $9,497 $10,713 MULTI-FAMILY .70 ERU Water SDCs (PLANT FEE) $2,011 $2,833 $3,684 $3,815 $3,815 $3,815 Water Rights Fees $5,826 $6,648 $7,499 Total ACCOMMODATIONS .60 ERU Water SDCs (PLANT FEE) $1,724 $2,428 $3,158 $3,270 $3,270 $3,270 Water Rights Fees $4,994 $5,698 $6,428 Total COMMERCIAL (NON-ACCOMMODATIONS) 5% per fixlure unit Water SDCs (PLANT FEE) $144 $202 $263 $273 $273 $273 Water Rights Fees $416 $475 $536 Total $2,497 $2,849 $3,214 Minimum (=>6 Fixture Units) revised 4.23.08 .. Memo Date: April 18, 2008 TO: Town Board From: Gregory A. White RE: Ordinance - 07-08 - Authorizing the Execution and Delivery a Loan Agreement of the Light and Power Revenue Bonds, Series 2007 BACKGROUND: The Town, acting through its Water Activity Enterprise, is in the process of upgrading and changing its potable water treatment process in the Mary's Lake Treatment Plant. The project includes the design and installation of a membrane treatment system including the expansion of treatment capacity from 2 MGD to 4 MGD. Ordinance 07-08 authorizes the Town to execute the Loan Agreement, including the issuance of a Governmental Agency Bond, with the Colorado Water Resources and Power Development Authority to borrow funds for this project. The financial parameters of the Loan Agreement and the Governmental Agency Bond are as follows: 1. Principal amount - $5,500,000 2. Interest rate - approximately 3.8Â°/0 3. Term of the Loan Agreement - 20 years 4. Estimated maximum annual debt service payment - approximately $440,000 The actual interest rate will be 80% of the interest rate paid by the Water and Power Authority on its bonds. The Water and Power Authority issues bonds to acquire funds to loan to eligible water providers for funding of their eligible water projects. The Town of Estes Park, acting through its Water Activity Enterprise, has filed an application for the loan and has been approved. The Ordinance authorizes the entering into the Loan Agreement and delivery of the Governmental Agency Bond substantially in the form of the Loan Agreement and the Governmental Agency Bond presented at the Town Board meeting. The determination of the actual amount of the loan, interest rate, maturity date and debt service payment will depend on market conditions at the time of the marketing the Water and Power Authority's overall bond. .. The Ordinance further authorizes the Mayor or Mayor Pro-Tem, and the Town Clerk or her Deputy to execute, authorize and authenticate the Loan Agreement and the Governmental Agency Bond. The Ordinance also sets forth the requirements for the execution of the Loan Agreement, the Governmental Agency Bond; and any other documents necessary to effectuate the receipt of the loan from the Water and Power Authority. The obligation of the Loan Agreement add the Governmental Agency' Bond is payable solely from the revenues of the Town's Water Activity Enterprise, is not a general obligation debt of the Town, and does not pledge or encumber any other revenues or property of the Town. BUDGET IMPLICATIONS: The 2008 and all subsequent Town Budgets for the Water Activity Enterprise shall be required to budget, from revenues received by the Water Activity Enterprise, sufficient funds to pay the obligation to the Water Power Authority pursuant to the Loan Agreement and the Governmental Agency Bond. STAFF RECOMMENDATION: It is the Staffs recommendation is that this Ordinance be adopted. 2 I . TOWN OF ESTES PARK, COLORADO ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE ORDINANCE NO. 07-08 AN ORDINANCE OF THE TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE, AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT BETWEEN THE COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY AND THE TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE; AUTHORIZING THE ISSUANCE OF A GOVERNMENTAL AGENCY BOND BY THE TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $5,500,000 EVIDENCING THE SPECIAL AND LIMITED OBLIGATION OF THE TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE, UNDER THE LOAN AGREEMENT; SPECIFYING THE MAXIMUM NET EFFECTIVE INTEREST RATE OF SAID BOND AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH; AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO WHEREAS, pursuant to Ordinance No. 8-99, the Town of Estes Park, Colorado (the "Town") has established the Town of Estes Park, Water Activity Enterprise (the "Enterprise") as an enterprise of the Town within the meaning of Section 20 of Article X of the Colorado Constitution, and also authorized the Enterprise to operate the municipal water system of the Town (the "System") as a water activity enterprise pursuant to part 1 of article 45.1 of title 37, Colorado Revised Statutes (the "Act"); and WHEREAS, the Town, acting by and through the Enterprise, previously made application to the Colorado Water Resources and Power Development Authority (the "Authority") for a loan to finance a project that consists of changing treatment technologies to a membrane filter technology and a capacity increase at the Mary's Lake Water Treatment Plant from 2 mgd to 4 mgd (the "Project"); and WHEREAS, the Authority has accepted such application and has expressed its interest in making such loan subject to certain conditions; and WHEREAS, there has been presented to the Board of Trustees of the Town (the "Board"), acting as the governing body of the Enterprise, at this meeting a form of Loan Agreement dated as of June 1, 2008 (the "Loan Agreement"), between the Authority and the Town, acting by and through the Enterprise, and a form of Bond (as hereinafter defined) of the Town, acting by and through the Enterprise; and WHEREAS, the Loan Agreement provides for the issuance by the Town, acting by and through the Enterprise, of a Governmental Agency Bond in the principal amount not exceeding 4810-8211-2514.3 .. $5,500,000 (the "Bond"), evidencing the special and limited obligation of the Town, acting by and through the Enterprise, under the Loan Agreement; and WHEREAS, pursuant to the said Ordinance No. 8-99 and pursuant to Section 37-45.1-103(4) and Section 37-45.1-104 of the Act, the Board, acting as the governing body of the Enterprise, is authorized to issue revenue bonds, such as the Bond; and WHEREAS, the Board, acting as the governing body o f the Enterprise, desires to approve the forms of the said documents, authorize the execution thereof, and authorize the issuance of the Bond. BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO, ACTING AS THE GOVERNING BODY OF ITS WATER ACTIVITY ENTERPRISE: 1. The forms of the Loan Agreement and the Bond, setting forth inter alia the terms, conditions and details of the Bond and the procedures relating thereto, are incorporated herein by reference and are hereby approved; and the Town, acting by and through the Enterprise, shall enter into the Loan Agreement and deliver the Bond, and perform its obligations thereunder, in substantially the forms presented at this meeting with only such changes as are not inconsistent herewith and as are approved by the Town Attorney and bond counsel for the Enterprise to effectuate the intentions of the parties or to comply with applicable law. 2. The Mayor or Mayor Pro Tem of the Town, acting as members of the governing body of the Enterprise, are hereby authorized and directed to execute, and the Town Clerk or any deputy are authorized to authenticate and affix the seal of the Town to, the Loan Agreement and the Bond, and further to execute and authenticate such other documents, instruments or certificates as are deemed necessary or desirable in connection therewith. Such documents are to be executed in substantially the form hereinabove approved, provided that such documents may be completed, corrected or revised as deemed necessary by the parties thereto in order to carry out the purposes of this Ordinance. The execution of any instrument by said officials shall be conclusive evidence of the approval by the Town, acting by and through the Enterprise, of such instrument in accordance with the terms of such instrument and this Ordinance. 3. The Board hereby approves the Project and, for the purpose of providing funds for the Project, the Town, acting by and through the Enterprise, shall issue the Bond to the Authority in the principal amount not to exceed $5,500,000, and with a maturity date not later than forty years from its date of issue. The Bond shall be sold to the Authority for a purchase price of not less than 100% of the par amount of the Bond, and the Bond shall be dated, mature or be payable at such time or times and be subject to prior redemption in advance of maturity as provided in the form attached to the Loan Agreement as Exhibit D. The maximum net effective interest rate of the Bond shall not exceed the sum of: (a) the rate attributable to the repayment of the amount of the Loan (as defined in the Loan Agreement); (b) the rate attributable to the amount of the Administrative Fee (as defined in the Loan Agreement); (c) the rate attributable to the amount of any late charges imposed pursuant to Section 3.03(d) of the Loan Agreement; and (d) the rate attributable to any amounts owed to the Authority pursuant to Section 3.03(e) of the Loan Agreement. The Bond shall be issued in accordance with and under the authority of the Act, 4810-8211-2514.3 2 .. part 4 0 f article 35 of title 31, Colorado Revised Statutes, the Constitution o f the State of Colorado, and all other laws of the State of Colorado thereunto enabling. 4. The Bond shall not be a general obligation of the Town or of the Enterprise and does not constitute a debt or indebtedness of the Town or the Enterprise within the meaning of any constitutional or statutory limitation, nor shall it ever constitute a multiple-fiscal year financial obligation of the Town or a charge against the Town's general credit or taxing power. The Bond shall be payable solely from the Pledged Property as defined in the Loan Agreement, and shall not be secured by any covenant to levy taxes. Neither any trustee, the Authority nor any holder of Authority bonds may compel the exercise of the Town's ad valorem property taxation powers. 5. The Board elects to apply all of the provisions of the Supplemental Public Securities Act, part 2 of article 57 of title 11, Colorado Revised Statutes (the "Supplemental Act"), to the Loan Agreement and the Bond. Pursuant to Section 1 1 -57-205 0 f the Supplemental Act, the Board hereby delegates to the Mayor, the Town Administrator or the Finance Officer of the Town, acting by and through the Enterprise, the authority to determine (a) the initial rate of interest on the Bond, (b) the total principal amount of the Bond, (c) the amount of principal maturing in each year, (d) the dates on which principal of and interest on the Bond shall be paid, and (e) any other detail of the Bond necessary to be determined by any of such officials, as authorized by the Supplemental Act, all of which shall be subject to the parameters and restrictions contained in this Ordinance. 6. The revenues pledged to pay the Loan Agreement and the Bond shall be governed by Section 11-57-208, Colorado Revised Statutes, and shall immediately be subject to the lien of such pledge without any physical delivery, filing or further act. The lien of such pledge shall have priority over any or all other obligations and liabilities of the Town or the Enterprise. The lien of such pledge shall be valid, binding and enforceable as against all persons having claims of any kind in tort, contract or otherwise against the Town or the Enterprise irrespective of whether such persons have notice of such lien. 7. The Mayor and the Town Clerk, other officers of the Town, and the members of the Board are hereby authorized and directed to take any and all actions necessary or appropriate to effectuate the provisions o f this Ordinance, including, but not limited to, the execution of such certificates and affidavits as reasonably may be required by the Authority or bond counsel for the Enterprise. The Town Clerk is hereby authorized and directed to attest, as necessary, all signatures and acts of the Mayor or any official of the Board or the Town in connection with the matters authorized by this Ordinance, and to place the seal of the Town, as necessary, on the documents authorized and approved by this Ordinance and all other additional certificates, documents and other papers associated with the transactions and other matters authorized by this Ordinance. The Mayor, Mayor Pro Tem, the Town Administrator, the Finance Officer of the Town and all other officials, employees and agents of the Board or the Town are hereby authorized to execute and deliver for and on behalf of the Town or the Enterprise any and all additional certificates, documents and other papers, including, but not limited to, any agreement concerning the deposit and investment of funds in connection with the transactions contemplated by this Ordinance, and to perform all other acts that they may deem necessary or appropriate in 4810-8211-2514.3 3 .. order to implement and carry out the transactions and other matters authorized or contemplated by this Ordinance. 8. The Town's Director of Utilities and the Town's Finance Officer are hereby determined to each be an Authorized Officer as defined in the Loan Agreement for the purpose of performing acts or executing documents relating to the Bond and the Loan Agreement and the loan evidenced by such documents. 9. The System shall continue to be operated as an enterprise during 2008 within the meaning of Article X, Section 20 of the Colorado Constitution and the Act. The Town will use its best efforts to continue to operate and maintain the System as an enterprise within the meaning of Article X, Section 20 of the Colorado Constitution and the Act as long as the Loan Agreement and the Bond are outstanding. 10. All acts, orders, ordinances, or parts thereof, in conflict with this Ordinance are hereby repealed, but only to the extent of such conflict. 11. If one or more sections or parts of this Ordinance shall be adjudged unenforceable or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are severable. 12. This Ordinance is, and shall constitute, a legislative measure of the Town, acting by and through the Enterprise, and after the Bond is issued, this Ordinance shall constitute an irrevocable contract between the Town, acting by and through the Enterprise, and the Authority or any subsequent owner of the Bond, and this Ordinance shall be and remain irrepealable until the Bond shall be fully paid, satisfied or discharged. 13. All action (not inconsistent with the provisions of this Ordinance) heretofore taken by the governing body of the Enterprise or by the officers and employees of the Town or the Enterprise in connection with the undertaking and completion of the Project and issuance of the Bond and the execution of the Loan Agreement by the Town, acting by and through the Enterprise, is hereby ratified, approved and confirmed. 14. This Ordinance, immediately upon its passage, shall be recorded in the Town book of Ordinances kept for that purpose, and shall be authenticated by the signatures of the Mayor and of the Town Clerk. [Remainder of page intentionally blank] 4810-8211-2514.3 4 . 0 15. Following its adoption, this Ordinance shall take effect and be in force on the date that is 30 days after its publication. INTRODUCED, READ BY TITLE, APPROVED AND ADOPTED on the 22nd day of April, 2008. [SEAL] Attest: TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE Town Clerk Mayor 4810-8211-2514.3 5 ENÂ· '\1~AT " O' 1 . DRAFT OF April 16,2008 DRINKING WATER REVOLVING FUND LOAN AGREEMENT BETWEEN COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY AND TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE DATED AS OF JUNE 1, 2008 80012665.1 .. THIS LOAN AGREEMENT, made and entered into as of June 1, 2008, by and between COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY (the "Authority"), a body corporate and political subdivision of the State of Colorado, and TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE (the "Governmental Agency"), a municipal corporation of the State of Colorado; WITNESSETH THAT: WHEREAS, the United States of America, pursuant to the federal Safe Drinking Water Act Amendments of 1996, as amended, requires each state, as a condition to the receipt of certain funds, to establish a drinking water revolving fund to be administered by an instrumentality of the state before the state may receive capitalization grants to finance the costs of infrastructure needed to achieve or maintain compliance with federal drinking water requirements; WHEREAS, the Authority was created to initiate, acquire, construct, maintain, repair and operate or cause to be operated water management projects which include water facilities and to issue its bonds to pay the cost of such projects; WHEREAS, Section 37-95-107.8 of the Colorado Revised Statutes has created a drinking water revolving fund to be administered by the Authority which will enable the State of Colorado to comply with the provisions of said federal Safe Drinking Water Act Amendments of 1996, as amended; WHEREAS, the Authority has determined to issue its bonds and to loan the proceeds of such bonds to public entities in Colorado to finance the costs of drinking water facilities, and to use moneys on deposit in the Drinking Water Revolving Fund to assist such public entities in connection with the financing of such facilities; WHEREAS, the Authority, in accordance with the Act and the Bond Resolution (as such terms are hereinafter defined), will issue its bonds for the purpose of making loans from the proceeds thereof to public entities, including the Governmental Agency, to finance all or any portion of the cost o f drinking water facilities; WHEREAS, the Governmental Agency has made timely application to the Authority for a loan to finance all or any portion of the cost of a water facility; WHEREAS, the General Assembly of the State of Colorado has approved a project eligibility list which includes the water facilities proposed to be financed hereunder; WHEREAS, the Authority has approved the Governmental Agency's application for a loan from available proceeds of the bonds of the Authority in an amount not to exceed the amount of the loan commitment set forth in paragraph (3) of Exhibit B hereto to finance all or any portion of the cost of a water facility of the Governmental Agency; 80012665.1 -1- " WHEREAS, the Governmental Agency will issue its bond to the Authority to evidence said loan from the Authority; NOW, THEREFORE, for and in consideration of the award of the loan by the Authority and of the mutual covenants herein, the Authority and the Governmental Agency each agree to perform their respective obligations under this Loan Agreement in accordance with the conditions, covenants and procedures set forth herein and attached hereto as a part hereof, as follows: ARTICLE I. DEFINITIONS SECTION 1.01 Definitions. The following terms as used in this Loan Agreement shall, unless the context clearly requires otherwise, have the following meanings: "Act" means the "Colorado Water Resources and Power Development Authority Act," being Section 37-95-101 et. seq. of the Colorado Revised Statutes, as the same may from time to time be amended and supplemented. "Administrative Fee" means the fee payable pursuant to subsection (b) of Section 3.03 hereof which is calculated on the basis of an annual fee of eight-tenths of one percent (.8%) of the initial principal amount of the Loan, or such lesser amount, if any, as the Authority may approve from time to time. "Allocable Investment Income" means the interest earnings or accrual thereof on the Project Loan Subaccount which are to be credited to the Loan Repayments in accordance with subsection (c) of Section 3.03. "Allocable Percentage" means the percentage allocated to the Governmental Agency under the definition of"Allocable Share" contained in Section 1.01 of the Bond Resolution. "Annual Information" means the information specified in Section 2.03 in this Loan Agreement. "Authority" means the Colorado Water Resources and Power Development Authority, a body corporate and political subdivision of the State of Colorado with corporate succession duly created and validly existing under and by virtue of the Act. "Authority Bonds" means bonds authorized by the Bond Resolution, together with any refunding bonds authenticated and delivered pursuant to the Bond Resolution, in each case in order to provide the source of funding of the Loan, including the particular Project Loan Subaccount from which the amounts loaned to the Governmental Agency pursuant to this Loan Agreement are taken. "Authorized Officer" means, in the case of the Governmental Agency, the person whose name is set forth in Exhibit B hereto or such other person or persons authorized pursuant to a resolution or ordinance of the governing body of the Governmental Agency to act as an 80012665.1 -2- . Authorized Officer of the Governmental Agency to perform any act or execute any document relating to the Loan, the Governmental Agency Bond or this Loan Agreement whose name is furnished in writing to the Authority. "Bond Resolution" means the Drinking Water Revolving Fund 2008 Series A Revenue Bond Resolution, as adopted by the Authority on April 25, 2008, authorizing the issuance of the Authority Bonds, and all further amendments and supplements thereto adopted in accordance with the provisions thereof. "Code" means the "Internal Revenue Code of 1986," as the same may from time to time be amended and supplemented, including any regulations promulgated thereunder and any administrative or judicial interpretations thereof. "Cost" means those costs that are eligible to be funded from draws under the Federal Capitalization Agreement and are reasonable, necessary and allocable to the Project and are permitted by generally accepted accounting principles to be costs of the Project. Cost shall also include Costs of Issuance (as defined in the Bond Resolution). "Event of Default" means any occurrence or event specified in Section 5.01 hereof. "Federal Capitalization Agreement" means the instrument or agreement established or entered into by the United States of America Environmental Protection Agency with the Authority to make capitalization grant payments pursuant to the federal Safe Drinking Water Act Amendments of 1996, as amended (Pub. L. 104-182)) "Fiscal Year" means the fiscal year o f the Governmental Agency. "GAAP" means generally accepted accounting principles as in effect from time to time in the United States. "Governmental Agency" means the public entity that is a party to and is described in the first paragraph o f this Loan Agreement, and its successors and assigns. "Governmental Agency Bond" means the bond executed and delivered by the Governmental Agency to the Authority to evidence the Loan, dated the date of the Loan Closing, the form of which is attached hereto as Exhibit D and made a part hereof. "Governmental Agencies" means the Governmental Agency and any other governmental agencies permitted by the Act that have entered into Loan Agreements with the Authority pursuant to which the Authority will make Loans to such Governmental Agencies from moneys on deposit in the Project Account financed with the proceeds ofthe Authority Bonds. "Holder" means any holder of Authority Bonds as defined under the Bond Resolution and, for the purposes of Section 2.03 of this Loan Agreement, shall also mean any beneficial owner of Authority Bonds within the meaning of Rule 13-d under the Securities Exchange Act of 1934, as amended. 80012665.1 -3- A . '' "Loan" means the loan made by the Authority to the Governmental Agency to finance or refinance all or any portion of the Cost of the Project pursuant to this Loan Agreement. For all purposes of this Loan Agreement, the principal amount of the Loan at any time shall be equal to the amount of the loan commitment set forth in paragraph (3) of Exhibit B attached hereto and made a part of this Loan Agreement (which loan commitment amount equals the sum of (i) the amount actually deposited in the Project Loan Subaccount from the proceeds of the Authority Bonds and moneys of the Authority, (ii) the Governmental Agency's Allocable Percentage of the Costs of Issuance, original issue discount and underwriter's discount for all Authority Bonds issued in connection with the making of the Loan, and (iii) capitalized interest during the Project construction period to be paid with the proceeds of Authority Bonds), less any portion of such principal amount as has been repaid by the Governmental Agency under this Loan Agreement. "Loan Agreement" means this Loan Agreement, including the Exhibits attached hereto, as it may be supplemented, modified or amended from time to time in accordance with the terms hereof and of the Bond Resolution. "Loan Agreements" means this Loan Agreement and any other loan agreements entered into between the Authority and one or more of the Governmental Agencies pursuant to which the Authority will make Loans to such Governmental Agencies from moneys on deposit in the Project Account financed with the proceeds of certain of the Authority Bonds and funds of the Authority. "Loan Closing" means the date upon which the Authority shall issue and deliver the initial Authority Bonds. "Loan Repayments" means the payments payable by the Governmental Agency pursuant to Section 3.03 of this Loan Agreement, including payments payable under the Governmental Agency Bond. "Loan Servicer" means the Loan Servicer for the Loans, duly appointed and designated as such pursuant to the Loan Servicing Agreement, dated as of the dated date of the Authority Bonds, between the Authority and the Loan Servicer, and its successors as Loan Servicer under the Loan Servicing Agreement. "Loans" means the Loan and loans made by the Authority to other Governmental Agencies under loan agreements from moneys on deposit in the Project Account financed with the proceeds of the Authority Bonds and funds o f the Authority. "Loan Term" means the defined term of this Loan Agreement set forth in paragraph (4) of Exhibit B attached hereto and made a part hereof. "MSRB" means the Municipal Securities Rulemaking Board established in accordance with the provisions of Section 158(b)(1) of the Securities Exchange Act of 1934. "Pledged Property" means the defined term of this Loan Agreement set forth in paragraph (4) of Exhibit A attached hereto and made a part hereof. 80012665.1 -4- .. 4. "Prime Rate" means the prevailing commercial interest rate announced by the Trustee from time to time as its prime lending rate. "Project" means the water fucilities of the Governmental Agency described in paragraph (1) of Exhibit A attached hereto and made a part hereof, all or any portion of the Cost of which is financed or refinanced by the Authority through the making of the Loan under this Loan Agreement. "Project Account" means the 2008 Series A Project Account created under the Bond Resolution. "Project Loan Subaccount" means the 2008 Series A Project Loan Subaccount established on behalf of the Governmental Agency in the Project Account in accordance with the Bond Resolution. "Repository" means any nationally recognized municipal securities information repository within the meaning of Rule 15c2-12. "Revenues" means the defined term of this Loan Agreement set forth in paragraph (4) of Exhibit A attached hereto and made a part hereof. "Rule 15c2-12" means Rule 15c2-12 under the Securities Exchange Act of 1934, as amended through the date of adoption of the Bond Resolution, together with all interpretive guidances or other official interpretations and explanations thereof that are promulgated by the SEC. "State Information Depository" means any public or private repository designated by the State of Colorado, and recognized as such by the SEC for the purposes of Rule 15c2-12. 1 "2008 Series A Matching Account" means the 2008 Series A Matching Account created under the Bond Resolution. "SEC" means the United States Securities and Exchange Commission. "System" means the water system of the Governmental Agency, including the Project, described in paragraph (2) of Exhibit A attached hereto and made a part hereof for which the Governmental Agency is making the borrowing under this Loan Agreement, as such system may be modified or expanded from time to time. "Trustee" means the Trustee appointed by the Authority pursuant to the Bond Resolution and its successor or successors and any other corporation which may at any time be substituted in its place as Trustee pursuant to the Bond Resolution. Terms not otherwise defined in this Section 1.01 or in Exhibits A and B hereto shall have the meanings ascribed to them in the Bond Resolution. 80012665.1 -5- 0 . Except where the context otherwise requires, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include firms, associations, corporations, agencies and districts. Words importing one gender shall include the other gender. ARTICLE II. REPRESENTATIONS AND COVENANTS OF GOVERNMENTAL AGENCY SECTION 2.01 Representations of Governmental Agency. The Governmental Agency represents for the benefit of the Authority and the holders of the Authority Bonds as follows: (a) Organization and Authority. (i) The Governmental Agency is a governmental agency as defined in the Act and as described in the first paragraph of this Loan Agreement. (ii) The System is a system for the provision to the public of water for human consumption through pipes or other constructed conveyances which has at least fifteen service connections or regularly serves at least twenty-five individuals. (iii) The Governmental Agency has full legal right and authority and all necessary licenses and permits required as of the date hereof to own, operate and maintain the System, to carry on its activities relating thereto, to execute and deliver this Loan Agreement, to execute, issue and deliver the Governmental Agency Bond, to undertake and complete the Project (other than licenses, permits, and approvals relating to the construction and acquisition of the Project which the Governmental Agency expects to receive in the ordinary course of business), and to carry out and consummate all transactions contemplated by this Loan Agreement. The Project is on the drinking water project eligibility list approved by the General Assembly of the State of Colorado pursuant to the Act and is a project which the Governmental Agency may undertake pursuant to Colorado law and for which the Governmental Agency is authorized by law to borrow money. (iv) The proceedings of the Governmental Agency' s governing body and voters, if a referendum is necessary, approving this Loan Agreement and the Governmental Agency Bond and authorizing their execution, issuance and delivery on behalf of the Governmental Agency, and authorizing the Governmental Agency to undertake and complete the Project have been duly and lawfully adopted in accordance with the laws of Colorado and such proceedings were duly approved and published, if necessary, in accordance with applicable Colorado law, at a meeting or meetings which 800126651 -6- .. .. were duly called pursuant to necessary public notice and held in accordance with applicable Colorado law, and at which quorums were present and acting throughout. (v) This Loan Agreement and the Governmental Agency Bond, when delivered at the Loan Closing, will have been, duly authorized, executed and delivered by an Authorized O fficer of the Governmental Agency; and, assuming that the Authority has all the requisite power and authority to authorize, execute and deliver, and has duly authorized, executed and delivered, this Loan Agreement, this Loan Agreement constitutes, and the Governmental Agency Bond when delivered to the Authority will constitute, the legal, valid and binding obligations of the Governmental Agency in accordance with their respective terms, and the information contained under "Description of the Loan" on Exhibit B attached hereto and made a part hereof is true and accurate in all respects. (b) Full Disclosure. There is no fact that the Governmental Agency has not disclosed to the Authority in writing on the Governmental Agency's application for the Loan or otherwise that materially adversely affects the properties, activities or condition (financial or otherwise) of the Governmental Agency or the System, or the ability of the Governmental Agency to make all Loan Repayments and otherwise observe and perform its duties, covenants, obligations and agreements under this Loan Agreement and the Governmental Agency Bond. (c) Pending Litigation. There are no proceedings pending, or, to the knowledge of the Governmental Agency threatened, against or affecting the Governmental Agency, in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined, would materially adversely affect the properties, activities or condition (financial or otherwise) of the Governmental Agency or the System, or the ability o f the Governmental Agency to make all Loan Repayments and otherwise observe and perform its duties, covenants, obligations and agreements under this Loan Agreement and the Governmental Agency Bond, that have not been disclosed in writing to the Authority in the Governmental Agency's application for the Loan or otherwise to the Authority. (d) Compliance with Existing Laws and Agreements. The authorization, execution and delivery of this Loan Agreement and the Governmental Agency Bond by the Governmental Agency, the observation and performance by the Governmental Agency of its duties, covenants, obligations and agreements thereunder and the consummation of the transactions provided for in this Loan Agreement and the Governmental Agency Bond, the compliance by the Governmental Agency with the 80012665.1 -7- 1 . I. '2.1 provisions of this Loan Agreement and the Governmental Agency Bond and the undertaking and completion of the Project will not result in any breach of any of the terms, conditions or provisions of, or constitute a default .under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Governmental Agency pursuant to any existing ordinance or resolution, trust agreement, indenture, mortgage, deed of trust, loan agreement or other instrument (other than the lien and charge of (i) this Loan Agreement and the Governmental Agency Bond and (ii) any ordinance, resolution or indenture which authorized outstanding debt obligations of the Governmental Agency which are at parity with, or superior to, the Governmental Agency Bond as to lien on, and source and security for, payment thereon from the Pledged Property) to which the Governmental Agency is a party or by which the Governmental Agency, the System or any of its property or assets may be bound, nor will such action result in any violation of the provisions of the charter or other document pursuant to which the Governmental Agency was established or any laws, ordinances, resolutions, governmental rules, regulations or court orders to which the Governmental Agency, the System or its properties or operations is subject. (e) No Defaults. No event has occurred and no condition exists that, upon authorization, execution and delivery of this Loan Agreement and the Governmental Agency Bond or receipt of the amount of the Loan, would constitute an Event of Default hereunder. The Governmental Agency is not in violation of, and has not received notice of any claimed violation of, any term of any agreement or other instrument to which it is a party or by which it, the System or its property may be bound, which violation would materially adversely affect the properties, activities, prospects or condition (financial or otherwise) of the Governmental Agency or the System or the ability of the Governmental Agency to make all Loan Repayments or otherwise observe and perform its duties, covenants, obligations and agreements under this Loan Agreement and the Governmental Agency Bond. (f) Governmental Consent. The Governmental Agency has obtained all permits and approvals required to date by any governmental body or officer (and reasonably expects to receive all permits required in the future by any governmental body or officer) for the making, observance and performance by the Governmental Agency of its duties, covenants. obligations and agreements under this Loan Agreement and the Governmental Agency Bond or for the undertaking or completion of the Project and the financing or refinancing thereof; and the Governmental Agency has complied with all applicable provisions of law requiring any notification, declaration, filing or registration with any governmental body or officer in connection with the making, observance and performance by the Governmental Agency of its duties, covenants, obligations and agreements under this Loan Agreement and the Governmental Agency Bond or with the undertaking or completion of the Project and the financing or refinancing thereof. No consent, approval or authorization of, or filing, registration or qualification with, any governmental body or officer that has not been 80012665.1 -8- .. obtained (or that is not reasonably expected to be obtained) is required on the part of the Governmental Agency as a condition to the authorization, execution and delivery of this Loan Agreement and the Governmental Agency Bond, the undertaking or completion of the Project or the consummation of any transaction herein contemplated. (g) Compliance with Law. The Governmental Agency (i) is in compliance with all laws, ordinances, governmental rules and regulations to which it is subject, the failure to comply with which would materially adversely affect the ability of the Governmental Agency to conduct its activities or undertake or complete the Project or the condition (financial or otherwise) of the Governmental Agency or the System; and (ii) has obtained all licenses, permits, franchises or other governmental authorizations presently necessary for the ownership of its property or for the conduct of its activities which, if not obtained, would materially adversely affect the ability of the Governmental Agency to conduct its activities or undertake or complete the Project or the condition (financial or otherwise) of the Governmental Agency or the System (other than licenses, permits, franchises or other governmental authorizations relating to the construction and acquisition of the Project which the Governmental Agency expects to receive in the ordinary course o f business). (h) Use of Proceeds. The Governmental Agency will apply the proceeds of the Loan from the Authority (i) to finance or refinance all or any portion of the Cost of the Project; and (ii) where applicable, to reimburse the Governmental Agency for all or any portion of the Cost of the Project, which portion was paid or incurred in anticipation of reimbursement by the Authority. SECTION 2.02 Particular Covenants of the Governmental Agency. (a) Repayment Pledge. The Governmental Agency irrevocably pledges and grants a lien on the Pledged Property for the punctual payment of the Loan Repayments. This pledge shall be valid and binding from and after the date of the delivery of the Governmental Agency Bond to the Authority, and the Pledged Property, as received by the Governmental Agency and hereby pledged, shall immediately be subject to the lien of this pledge without any physical delivery thereof, any filing, or further act. The lien of this pledge and the obligation to perform the contractual provisions herby made shall have priorty over any or all other obligations and liabilities of the Governmental Agency (except as herein otherwise expressly provided), and the lien if this pledge shall be valid, binding and enforceable as against all persons having claims of any kind in tort, contract otherwise against the Governmental Agency (except as herein otherwise expressly provided), irrespective o f whether such persons have notice thereo f. (b) Performance Under Loan Agreement. 80012665.1 -9- . k / 1 4 The Governmental Agency covenants and agrees (i) to maintain the System in good repair and operating condition; (ii) to cooperate with the Authority in the observance and performance of the respective duties, covenants, obligations and agreements of such Governmental Agency and the Authority under this Loan Agreement; and (iii) to comply with the covenants described in the Exhibits to this Loan Agreement. (c) Completion of Proiect and Provision of Moneys Therefor. The Governmental Agency covenants and agrees (i) to exercise its best efforts in accordance with prudent water utility practice to complete the Project and to so accomplish such completion on or before the estimated Project Completion Date set forth in Exhibit B hereto and made a part hereof; and (ii) to the extent legally available, to provide from the Revenues all moneys, in excess of the total amount of Loan proceeds it receives under the Loan, required to complete the Project. (d) Disposition ofthe System. Except for the disposal of any portion of the System which the Governmental Agency determines is no longer necessary for the operation of the System, the Governmental Agency shall not sell, lease, abandon or otherwise dispose of all or substantially all of the System, or any other component of the System which provides revenues to provide for the payment of this Loan Agreement or the Governmental Agency Bond except on ninety (90) days' prior written notice to the Authority and, in any event, shall not so sell, lease, abandon or otherwise dispose of the same unless the following conditions are met: (i) the Governmental Agency shall assign this Loan Agreement in accordance with Section 4.02 hereof and its rights and interests hereunder to the purchaser or lessee of the System and such purchaser or lessee shall assume all duties, covenants, obligations and agreements of the Governmental Agency under this Loan Agreement; and (ii) the Authority shall by appropriate action determine, in its sole discretion, that such sale, lease, abandonment or other disposition will not adversely affect the Authority's ability to meet its duties, covenants, obligations and agreements under the Bond Resolution, and will not adversely affect the value of this Loan Agreement as security for the payment of Authority Bonds and interest thereon, adversely affect the eligibility of interest on Authority Bonds then outstanding for exclusion from gross income for purposes of Federal income taxation or adversely affect any agreement entered into by the Authority or the State with, or condition of any grant received by the Authority or the State from, the United States of America, which is related to the Federal Capitalization Agreement or any capitalization grant received by the Authority or the State under the federal Safe Drinking Water Act Amendments of 1996, as amended (Pub. L. 104-182) (e) Exclusion of Interest from Federal Gross Income and Compliance with Code. (i) The Governmental Agency covenants and agrees that it shall not take or permit any action or fail to take any action which action or omission would result in the loss of the exclusion of the interest on any Authority 80012665.1 -10- Bonds (assuming solely for this purpose that the proceeds of the Authority Bonds loaned to the Governmental Agency represent all of the proceeds of the Authority Bonds)from gross income for federal income tax purposes pursuant to Section 103(a) of the Code. (ii) The Governmental Agency covenants and agrees that it shall not take or permit any action or fail to take any action, which action or omission would cause the Authority Bonds (assuming solely for this purpose that the proceeds of the Authority Bonds loaned to the Governmental Agency represent all of the proceeds of the Authority Bonds) to be "private activity bonds" within the meaning of section 141(a) of the Code. Accordingly, unless the Governmental Agency receives the prior written approval of the Authority, and subject to the conditions of Section 2.02(d)(ii), the Governmental Agency shall neither (A) permit in excess of 10 percent of either (1) the proceeds (as such term is used in Section 141 of the Code) of the Authority Bonds loaned to the Governmental Agency or (2) the Project financed (or refinanced) with the proceeds of the Authority Bonds loaned to the Governmental Agency, to be used directly or indirectly in any manner that would constitute "private business use" within the meaning of Section 141(b)(6) of the Code, nor (B) use directly or indirectly any of the proceeds of the Authority Bonds loaned to the Governmental Agency to make or finance loans to persons other than governmental units (as such term is used in section 141(c) of the Code); provided further, that more than one half of the private business use permitted by clause (A) shall be neither (1) disproportionate related business use, nor (2) private business use not related to the government use of such proceeds of the Authority Bonds, as those terms are used in Section 141(b)(3) ofthe Code. (iii) The Governmental Agency covenants and agrees that it shall not directly or indirectly use or permit the use of any proceeds of the Authority Bonds (or amounts treated as replaced with such proceeds) or any other funds, or take or permit any action or fail to take any action, which use, action or omission would cause the Authority Bonds (assuming solely for this purpose that the proceeds of the Authority Bonds in the hands of the Governmental Agency represent all of the proceeds of the Authority Bonds) to be "arbitrage bonds" within the meaning of Section 148(a) of the Code. (iv) The Governmental Agency covenants and agrees that it shall not use or permit the use of any portion of the proceeds of the Authority Bonds to retire any other obligations of the Governmental Agency or any other entity, unless the Governmental Agency obtains the written consent of the Authority, which consent may be given or withheld in the Authority's sole discretion. 80012665.1 -11- 0 0 1, t, (v) The Governmental Agency covenants and agrees to maintain records of its investments, if any, of proceeds of the Authority Bonds loaned to the Governmental Agency which are held by the Governmental Agency and earnings thereon, and will maintain records of expenditures of such proceeds. The Governmental Agency will pay to the Authority any earnings on proceeds of the Authority Bonds loaned to the Governmental Agency which are held by the Governmental Agency (including earnings on such earnings) which, in the opinion of the Authority, are required to be rebated to the United States Treasury Department. The Governmental Agency will provide copies of all records of its investment of such proceeds and of its expenditures to the Authority on a periodic basis upon request by the Authority and will furnish to the Authority, in writing, information regarding any facilities financed or refinanced therewith. (Vi) Notwithstanding anything herein to the contrary, as long as is necessary to maintain the exclusion of interest on the Authority Bonds from gross income for Federal income tax purposes, the covenants contained in this subsection (e) shall survive the payment of the Authority Bonds and the interest thereon, including any payment pursuant to Section 12.01 0 f the Bond Resolution or prepayment pursuant to Section 3.07 of this Loan Agreement, respectively. (vii) The Governmental Agency shall not, pursuant to any arrangement formal or informal, purchase Authority Bonds in an amount related to the amount o f the Loan. (viii) The Governmental Agency hereby certifies and represents that it has complied with the requirements of Treasury Regulation Section 1.150-2 in its authorizing resolution or other official action with regard to proceeds of the Authority Bonds, if any, to be used to reimburse the Governmental Agency for expenses incurred by the Governmental Agency prior to the issuance of the Authority Bonds. In the event that any of the proceeds of the Authority Bonds are to be used to pay debt service on any prior issue of the Governmental Agency, and any of the proceeds of such prior issue (or any obligations refinanced by such prior issue) were used to reimburse the Governmental Agency for expenditures incurred prior to the issuance of the prior issue (or refinanced obligations, as the case may be), the Governmental Agency hereby certifies and represents that the allocation of such proceeds to the reimbursed expenditure was a valid expenditure under the applicable law on reimbursement expenditures on the date of issue of the prior issue (or the refinanced obligations), as required by Federal Income Tax Regulation Section 1.150-2(g)(2). (ix) By executing this Loan Agreement, the Governmental Agency hereby certifies, represents and agrees that: 80012665.1 -12- .. (1) The proceeds of the Authority Bonds to be loaned to the Governmental Agency pursuant to this Loan Agreement do not, taking into account available earnings thereon, exceed.the amount necessary to pay for the Cost of the Project. (2) The Governmental Agency has entered into (or will enter into within six months from the date hereof) a binding commitment for the acquisition, construction or accomplishment of the Project, and will, within six months from the date of delivery of the Authority Bonds by the Authority, expend at least five percent of the proceeds of the Authority Bonds loaned to the Governmental Agency. (3) The Governmental Agency reasonably expects that 85% of the proceeds of the Loan will be expended within three years from the Loan Closing. Work on the acquisition, construction or accomplishment of the Project will proceed with due diligence to completion. (4) The total proceeds of the sale of all obligations issued to date for the Project do not exceed the total Cost of the Project, taking into account available earnings thereon. (5) The Governmental Agency does not expect that the Project will be sold, leased or otherwise disposed of in whole or in part during the term of the Loan or of the Authority Bonds or for any portion of the term of the Loan or of the Authority Bonds. The Governmental Agency shall not sell, lease or otherwise dispose of the Project in whole or in part during the term of the Loan or of the Authority Bonds or for any portion of the term of the Loan or of the Authority Bonds unless the conditions of Section 2.02(d)(ii) have been satisfied. (6) Any fund established, utilized or held by or on behalf of the Governmental Agency to pay debt service on the Loan will be used to achieve a proper matching of revenues and debt service and will be depleted at least annually except for a reasonable carryover amount not to exceed earnings on the fund for the immediately preceding year or 1 /12 0 f the annual debt service on the Loan for the immediately preceding year. (7) No portion of the amounts received from the Loan will be used as a substitute for other funds which were otherwise to be used as a source of financing for the Project and which have been or will be used to acquire, directly or indirectly, obligations producing a yield 80012665.1 -13- . 1 in excess of the yield on the Authority Bonds. The Governmental Agency does not expect to receive any amounts in the future that are intended to finance the portion of the Project being financed with proceeds of the Loan. No portion of the amounts received from the Loan will be used to finance working capital expenditures. The Loan has a weighted average maturity that does not exceed 120 percent of the average reasonably expected economic life of the capital projects financed or refinanced by the Loan. (8) No portion of the proceeds of the Loan which are held by the Governmental Agency will be invested, directly or indirectly, in federally-insured deposits or accounts, or federally-guaranteed investments, other than amounts of unexpended Loan proceeds invested in the debt service fund, in any reasonably required reserve or replacement fund, or investments of unexpended Loan proceeds for any remaining initial temporary period (e.g., no later than three years after the date of the Loan Closing) until the proceeds are needed for the Project. (9) No other obligations of the Governmental Agency (1) are reasonably expected to be paid out of substantially the same source of funds (or will have substantially the same claim to be paid out of substantially the same source of funds) as will be used to pay the Loan; and (2) are being sold at substantially the same time as the Loan (i.e., less than 15 days apart); and (3) were sold pursuant to the same plan of financing with the Loan. (10) The Governmental Agency has neither received notice that its certifications as to expectations may not be relied upon with respect to its obligations nor has it been advised that any adverse action by the Commissioner of the Internal Revenue Service is contemplated. (11) To the best of the knowledge and belief of the undersigned officer of the Governmental Agency, the facts and estimates set forth in this subsection of the Loan Agreement on which the Governmental Agency's expectations as to the application of the proceeds of the Authority Bonds loaned to the Governmental Agency are based, are reasonable. (12) None of the proceeds of the Authority Bonds loaned to the Governmental Agency which are held by the Governmental Agency will be invested in investments having a substantially guaranteed yield of four years or more. 80012665.1 -14- .. (f) Operation and Maintenance of the System. The Governmental Agency covenants and agrees that it shall, in accordance with prudent water utility practice, (i) at all times operate the properties of the System and any business in connection therewith in an efficient manner, (ii) maintain the System in good repair, working order and operating condition, (iii) from time to time make all necessary and proper repairs, renewals, replacements, additions, betterments and improvements with respect to the System so that at all times the business carried on in connection therewith shall be properly and advantageously conducted; provided, however, this covenant shall not be construed as requiring the Governmental Agency to expend any funds which are derived from sources other than the Revenues, and provided further that nothing herein shall be construed as preventing the Governmental Agency from doing so. (g) Records; Accounts. The Governmental Agency shall keep accurate records and accounts for the System (the "System Records"), separate and distinct from its other records and accounts (the "General Records"). Such System Records shall be maintained in accordance with GAAP and shall be audited annually by an independent accountant, which audit may be part of the annual audit of the General Records of the Governmental Agency. Such System Records and General Records shall be made available for inspection by the Authority at any reasonable time, and a copy of such annual audit(s) therefor, including all written comments and recommendations of such accountant, shall be furnished to the Authority within 210 days of the close ofthe fiscal year being so audited. (h) Inspections: Information. The Governmental Agency shall permit the Authority, and any party designated by the Authority, to examine, visit and inspect, at any and all reasonable times, the property, if any, constituting the Project, and to inspect and make copies of any accounts, books and records, including (without limitation) its records regarding receipts, disbursements, contracts, investments and any other matters relating thereto and to its financial standing, and shall supply such reports and information as the Authority may reasonably require in 1 connection therewith. 2 (i) Insurance. The Governmental Agency shall maintain or cause to be maintained, in force, insurance policies with responsible insurers or self insurance programs providing against risk of direct physical loss, damage or destruction of the System, at least to the extent that similar insurance is usually carried by utilities constructing, operating and maintaining utility system facilities o f the nature of the System, including liability coverage, all to the extent available at reasonable cost. Nothing herein shall be deemed to preclude the Governmental Agency from exerting against any party, other than the Authority, a 80012665.1 -15- . D \1 1, defense which may be available to the Governmental Agency, including, without limitation, a defense of sovereign immunity. 0) Cost of Proiect. The Governmental Agency certifies that the Cost of the Project, as listed in paragraph (2) of Exhibit B hereto and made a part hereof, is a reasonable and accurate estimation and upon direction of the Authority will supply the same with a certificate from its engineer stating that such Cost is a reasonable and accurate estimation, taking into account investment income to be realized during the course of the Project and other money that would, absent the Loan, have been used to pay the Cost of the Project. (k) Notice of Material Adverse Change. The Governmental Agency shall promptly notify the Authority of any material adverse change in the activities or condition (financial or otherwise) of the Governmental Agency relating to the System, or in the ability of the Governmental Agency to make all Loan Repayments and otherwise observe and perform its duties, covenants, obligations and agreements under this Loan Agreement and the Governmental Agency Bond from the Revenues. The Governmental Agency shall provide such financial information relating to the Governmental Agency as the Authority may require in connection with the issuance of Authority Bonds pursuant to the Bond Resolution. (1) Reimbursement for Ineligible Costs. The Governmental Agency shall promptly reimburse the Authority for the portion of the Loan which is determined to be a Cost of the Project which is not eligible for funding from draws under the Federal Capitalization Agreement. Such reimbursement shall be promptly repaid to the Authority upon written request of the Authority with interest on the amount to be reimbursed at the rate borne by the Authority Bonds from the date of the Loan. Any such reimbursement shall be applied by the Authority to reduce the Loan Repayments due pursuant to Section 3.03(a). Eligible costs are costs associated with the approved scope of work, the plans and specifications and any change of orders. (m) Advertising. The Governmental Agency agrees not to advertise the Project for construction bids until plans and specifications for the Project have been approved by the State Department of Public Health and Environment. (n) Commencement of Construction. Within twelve (12) months after the Loan Closing, the Governmental Agency shall initiate construction of the Project. 80012665.1 -16- .. 1/ , 1 (0) Interest in Proiect Site. As a condition of the Loan, the Governmental Agency will demonstrate to the satisfaction of the Authority before advertising bids for construction that the Governmental Agency has or will have a fee simple or such other estate or interest in the site of the Project, including necessary easements and rights-of-way, as the Authority finds sufficient to assure undisturbed use and possession for the purpose of construction and operation of the Project for the estimated life of the Project. (p) Archeological Artifacts. In the event that archeological artifacts or historical sources are unearthed during construction excavation of the Project, the Governmental Agency shall stop or cause to be stopped, construction activities and will notify the State Historic Conservation Office and the Authority o f such unearthing. (q) No Lobbying. No portion of the Loan may be used for lobbying or propaganda as prohibited by 18 U.S.C. Â§ 1913 or Section 607(a) of Public Law 96-74. (r) Federal Safe Water Act. The Governmental Agency covenants to meet the requirements of or otherwise be treated under Section 130 of the federal Safe Drinking Water Act as amended. By the execution and delivery of this Loan Agreement, the Governmental Agency acknowledges receipt from the Colorado Water Quality Control Division a list of federal laws and executive orders (known as federal "Cost-Cutters") which the Governmental Agency may be subject. The Governmental Agency agrees to comply with such laws and executive orders which are applicable to the Governmental Agency. (s) Continuing Representations. The representations of the Governmental Agency contained herein shall be true at the time of the execution of this Loan Agreement and at all times during the term of this Loan Agreement. (t) Additional Covenants and Requirements. If necessary in connection with the Authority's issuance of the Authority Bonds or the making of the Loan, additional covenants and requirements will be included on Exhibit F hereto and made a part hereof. The Governmental Agency agrees to observe and comply with each such additional covenant and requirement, if any, included on Exhibit F on the date of the Loan Closing. 80012665.1 -17- .. 1 , \11 4 1 SECTION 2.03 Obligation to Provide Continuing Disclosure. (a) If the Governmental Agency is advised in writirig by the Authority that the Governmental Agency is required to comply with the provisions of this Section 2.03, the Governmental Agency shall undertake, for the benefit of Holders of the Authority Bonds, to provide or cause to be provided through the Authority: (i) to each Repository and to the State Information Depository, no later than 210 days after the end of each Fiscal Year, commencing with the end of the first Fiscal Year following receipt of such advice from the Authority, the Annual Information relating to such Fiscal Year; (ii) if not submitted as part of or with the Annual Information, to each Repository and to the State Information Depository, if any, audited financial statements of the Governmental Agency for such Fiscal Year when and if they become available; provided that if the Governmental Agency's audited financial statements are not available by the date set forth in (i) above, the Annual Information shall contain unaudited financial statements in a format similar to the Governmental Agency's audited financial statements prepared for its most recent Fiscal Year, and the audited financial statements shall be filed in the same manner as the Annual Information when and i f they become available; and (iii) to each Repository or to the MSRB and to the State Information Depository, in a timely manner, notice of a failure to provide any Annual Information required by subsections (d), (e) and (f) of this Section 2.03. (b) The obligations of the Governmental Agency pursuant to subsection (a) of this Section 2.03 may be terminated as to such Governmental Agency pursuant to subsection (k) of this Section 2.03. Upon any such termination, the Governmental Agency shall provide notice of such termination to each Repository, the State Information Depository and the MSRB. (c) Nothing herein shall be deemed to prevent the Governmental Agency from disseminating or require the Governmental Agency to disseminate any other information in addition to that required hereby in the manner set forth herein or in any other manner. If the Governmental Agency disseminates any such additional information, the Governmental Agency shall have no obligation to update such information or include it in any future materials disseminated hereunder. (d) The required Annual Information shall consist of the Governmental Agency's audited financial statements for the most recent Fiscal Year as provided in subsection (a)(ii) of this Section 2.03, and such other information which the Authority deems reasonably necessary to provide compliance with Rule 15(c)2-12. 80012665.1 -18- 0 . '' (e) All or any portion of the Annual Information may be incorporated in the Annual Information by cross reference to any other documents which have been filed with (i) the Repositories, the State Information Depository and, if the document is an official statement, the MSRB or (ii) the SEC. (O Annual Information for any Fiscal Year containing any modified operating data or financial information (as contemplated by subsection (j)(v) of this Section 2.03) for such Fiscal Year shall explain, in narrative form, the reasons for such modification and the effect of such modification on the Annual Information being provided for such Fiscal Year. If a change in accounting principles is included in any such modification, such Annual Information shall present a comparison between the financial statements or information prepared on the basis of the modified accounting principles and those prepared on the basis of the former accounting principles. (g) The Governmental Agency' s annual financial statements for each Fiscal Year shall be prepared in accordance with GAAP as in effect from time to time. Such financial statements shall be audited by an independent accounting firm. (h) If the Governmental Agency shall fail to comply with any provision of this Section 2.03, then the Authority or any Holder of the Authority's Bonds may enforce, for the equal benefit and protection of all Holders similarly situated, by mandamus or other suit or proceeding at law or in equity, this Section 2.03 against the Governmental Agency and any of the officers, agents and employees of the Governmental Agency, and may compel the Governmental Agency or any such officers, agents or employees to perform and carry out their duties under this Section 2.03; provided that the sole and exclusive remedy for breach of this Section 2.03 shall be an action to compel specific performance of the obligations of the Governmental Agency hereunder and no person or entity shall be entitled to recover monetary damages hereunder under any circumstances, and, provided further, that any challenge to the adequacy of any information provided pursuant to subsection (a) of this Section 2.03 shall be brought only by the Authority or the Holders of 25% in aggregate principal amount of the Authority's Bonds at the time outstanding which are affected thereby. The failure of the Governmental Agency to comply with the provisions of this Section 2.03 shall not be deemed an Event of Default hereunder and the only remedies available to the Holders or the Authority for such failure to comply are the remedies contained in this subsection (h). (i) The provisions of this Section 2.03 are executed and delivered solely for the benefit of the Holders. No other person (other than the Authority) shall have any right to enforce the provisions of this Section 2.03 or any other rights under this Section 2.03. 0) Without the consent of any Holders of Authority Bonds, the Authority and the Governmental Agency at any time and from time to time may enter into any amendments or changes to this Section 2.03 for any of the following purposes: 80012665.1 -19- 0 4 \, 1 1 (i) to comply with or conform to Rule 15c2-12 or any amendments thereto (whether required or optional); (ii) to add a dissemination agent for the information required to be provided hereby and to make any necessary or desirable provisions with respect thereto; (iii) to evidence the succession of another person to the Governmental Agency and the assumption by any such successor of the covenants of the Governmental Agency under this Section 2.03; (iv) to add to the covenants of the Governmental Agency for the benefit of the Holders, or to surrender any right or power conferred upon the Governmental Agency pursuant to this Section 2.03; (v) to modify the contents, presentation and format of the Annual Information from time to time as a result of a change in circumstances that arises from A a change in legal requirements, change in law, or change in the identity, nature or status of the Governmental Agency, or type of business conducted; provided that, (a) there is filed with the Trustee an opinion of counsel having expertise with respect to securities laws of the United States of America or expertise with respect to the issuance of indebtedness by states and political subdivisions thereof, that (i) this Section 2.03, as amended, would have complied with the requirements of Rule 15c2-12 at the time of the offering of the Authority Bonds, after taking into account any amendments or authoritative interpretations of the Rule 15c2-12, as well as any change in circumstances; and (ii) the amendment or change does not materially impair the interests of Holders, or (b) such change or amendment is approved by the vote or consent of Holders of a majority in outstanding principal amount of the Authority Bonds affected thereby at or prior to the time o f such amendment or change. (k) This Section 2.03 shall remain in full force and effect until the earlier of (i) the Authority provides notice to each Repository, the State Information Depository and the MSRB that the Governmental Agency is no longer an "obligated person" within the meaning o f Rule 15c2-12 or (ii) all principal, redemption premiums, if any, and interest on the Authority Bonds shall have been paid in full or the Authority Bonds shall have otherwise been paid in full or legally defeased pursuant to Section 12.01 of the Bond Resolution. In the event of such payment or legal defeasance, the Authority shall promptly give written notice thereo f to the Governmental Agency. (1) Any notices to or filing with each Repository and the State Information Depository, if any, may be effected by sending the notice or filing to Disclosure USA, in accordance with its published procedures, for further submission by Disclosure USA to such Repositories. 80012665.1 -20- 0 . ARTICLE III. LOAN TO GOVERNMENTAL AGENCY; AMOUNTS PAYABLE; GENERAL AGREEMENTS SECTION 3.01 The Loan. The Authority hereby agrees to loan and disburse to the Governmental Agency in accordance with Section 3,02 hereo f, and the Governmental Agency agrees to borrow and accept from the Authority, the Loan in the principal amount equal to the loan commitment set forth in paragraph (3) of Exhibit B attached hereto and made a part hereof; provided, however, that (i) the Authority shall be under no obligation to make the Loan if the Governmental Agency does not deliver a Governmental Agency Bond to the Authority on the Loan Closing or an Event of Default has occurred and is continuing under the Bond Resolution or this Loan Agreement, and (ii) the proceeds of Authority Bonds shall be available for disbursement, as determined solely by the Authority, to finance the Cost of the Project. The Governmental Agency shall use the proceeds of the Loan strictly in accordance with Section 2.01(h) hereof, to finance the Cost of the Project. SECTION 3.02 Disbursement of Loan Proceeds. The Trustee, as the agent of the Authority, shall disburse the amounts on deposit in the Project Loan Subaccount to the Governmental Agency upon receipt of a requisition executed by an Authorized Officer thereof and approved by the Authority, and if deemed necessary by the Authority, approved by the Colorado Water Quality Control Division, in the form set forth in the Bond Resolution. The Authority covenants to direct the Trustee to provide all periodic written reports (as required by the provisions of the Bond Resolution) of all moneys on deposit under the Bond Resolution and to furnish such reports to the Governmental Agency as soon as practicable after receipt by the Authority. The Authority hereby agrees that in the event that moneys on deposit in the Project Loan Subaccount are lost due to the negligence or misconduct of the Trustee, the Authority on behalf of the Governmental Agency, shall, upon the written request of the Governmental Agency, pursue its remedies against the Trustee, including, but not limited to, equitable actions or actions for money damages. If there are moneys on deposit in the Project Loan Subaccount upon completion of the Project, the Governmental Agency shall advise the Authority in writing that no further requisitions are to be submitted to the Authority for disbursement of moneys from the Project Loan Subaccount. Upon receipt of such written advice, the Authority shall file with the Trustee the Certificate required by Section 5.03 of the Bond Resolution and use such moneys to redeem, purchase or provide for the payment of the Authority Bonds. The Authority shall credit ensuing Loan Repayments or portions thereof of the Governmental Agency chosen by the Authority as a result of the use of such to purchase, redeem or pay Authority Bonds. 80012665.1 -21- . /* 1 1 SECTION 3.03 Amounts Payable. (a) The Governmental Agency shall repay by electronic means the principal of and interest on the Loan in accordance with the schedule set forth on Exhibit C attached hereto and made a part hereof, as the same may be amended or modified, pursuant to Section 6.04 hereof. The Governmental Agency shall execute the Governmental Agency Bond to evidence the Loan and the obligations of the Governmental Agency under the Governmental Agency Bond shall be deemed to be amounts payable under this Section 3.03. Each portion of the Loan Repayment payable under this subsection (a), whether satisfied entirely through a direct payment by the Governmental Agency to the Loan Servicer or through a combination of a direct payment and the use of Allocable Investment Income as described in subsection (c) of this Section 3.03 to pay interest on the Authority Bonds (and to the extent moneys are available therefor, principal of the Authority Bonds), shall be deemed to be a credit against the corresponding obligation of the Governmental Agency under this subsection (a) and shall fulfill the Governmental Agency' s obligation to pay such amount hereunder and under the Governmental Agency Bond. Each payment made to the Loan Servicer pursuant to this subsection shall be applied first to interest then due and payable on the Loan, then to the principal of the Loan. In the event the Authority issues refunding bonds pursuant to the Bond Resolution in order to refinance the particular Project Account or Project Loan Subaccount from which amounts loaned to the Governmental Agency pursuant to this Loan Agreement are taken which refunding results in a decrease in total aggregate Loan Repayments, the Authority shall amend Exhibit C to reflect such decrease in total aggregate Loan Repayments. (b) In addition to the amounts payable under subsection (a) of this Section 3.03, the Governmental Agency shall pay the Administrative Fee in the amounts and on the dates set forth in Exhibit C attached hereto and made a part hereof. Each payment made pursuant to this subsection (b) shall, for purposes of the Loan and the Governmental Agency Bond, be considered as interest on the principal amount thereof. (c) The Governmental Agency shall receive as a credit against each of its semiannual interest payment obligations set forth on Exhibit C attached hereto and made a part hereof (and, as applicable under the Bond Resolution, its annual principal obligations to the extent moneys are available therefor), (i) the amount of capitalized interest available to be applied against such obligations, as footnoted on such Exhibit C, and (ii) the amount of Allocable Investment Income, if any, to be credited against such obligations, as set forth in each billing statement to be mailed by the Loan Servicer to the Governmental Agency approximately thirty (30) days prior to each Loan Repayment due date. (d) In addition to the payments required by subsections (a) and (b) of this Section 3.03, the Governmental Agency shall pay a late charge for any payment that is received by the Loan Servicer later than the fifth (5th) day following its due date, in an amount equal 80012665.1 -22- .. to the greater of twelve percent (12%) per annum or the Prime Rate plus one half of one percent per annum on such late payment from its due date to when it is actually paid; provided, however, that the interest rate payable on the Loan including such late charge shall not be in excess of the maximum rate permitted by law as of the date hereof. (e) The Governmental Agency acknowledges that payment of the Authority Bonds by the Authority, including payment from moneys drawn by the Trustee from the 2008 Series A Matching Account, other than from the investment income thereon, does not constitute payment of the amounts due under this Loan Agreement or the Governmental Agency Bond. If at any time the amounts on deposit in the 2008 Series A Matching Account shall be less than the requirement of such Account, as the result of any transfer of moneys from the 2008 Series A Matching Account to the Debt Service Fund as the result of failure by the Governmental Agency to make any Loan Repayments required hereunder, the Governmental Agency agrees to (i) replenish such moneys so transferred, and (ii) replenish any deficiency arising from losses incurred in making such transfer as the result of the liquidation by the Authority of investment securities acquired as an investment of moneys in the 2008 Series A Matching Account, by making payments to the Authority in equal monthly installments for the lesser of six (6) months or the remaining term of the Loan at an interest rate to be determined by the Authority necessary to make up any loss caused by such deficiency. (f) Loan Repayments pursuant to this Section 3.03 shall be made by electronic means (either by bank wire transfer or by Automated Clearing House "ACH" transfer.) SECTION 3.04 Unconditional Obligations. The obligation of the Governmental Agency to make the Loan Repayments and all other payments required hereunder and the obligation to perform and observe the other duties, covenants, obligations and agreements on its part contained herein is payable solely from the Revenues and shall be absolute and unconditional and shall not be abated, rebated, set-off, reduced, abrogated, terminated, waived, diminished, postponed or otherwise modified in any manner or to any extent whatsoever, while any payments under this Loan Agreement remain unpaid, regardless of any contingency, act of God, event or cause whatsoever, including (without limitation) any acts or circumstances that may constitute failure of consideration, eviction or constructive eviction, the taking by eminent domain or destruction of or damage to the Project or the System, commercial frustration of the purpose, any change in the laws of the United States of America or of the State of Colorado or any political subdivision of either or in the rules or regulations of any governmental authority, any failure of the Authority or the Trustee to perform and observe any agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with the Project, this Loan Agreement or the Bond Resolution or any rights of set off, recoupment, abatement or counterclaim that the Governmental Agency might otherwise have against the Authority, the Trustee, the Loan Servicer or any other party or parties; provided, however, that payments hereunder shall not constitute a waiver of any such rights. The Governmental Agency shall not be obligated to make any payments required to be made by any other Governmental Agencies under separate Loan Agreements or the Bond Resolution. 80012665.1 -23- SECTION 3.05 Loan Agreement to Survive Bond Resolution and Authority Bonds. The Governmental Agency acknowledges that its duties, covenants, obligations and agreements hereunder shall survive the discharge of the Bond Resolution and payment of the principal of, redemption premium, if any, and interest on the Authority Bonds. The Authority acknowledges that all duties, covenants, obligations and agreements of the Governmental Agency shall (except as and to the extent preserved in subsection (e)(vi) of Section 2.02 hereof) terminate upon the date of payment of all amounts payable to the Authority hereunder. SECTION 3.06 Disclaimer of Warranties and Indemnification. The Governmental Agency acknowledges and agrees that (i) neither the Authority nor the Trustee makes any warranty or representation, either express or implied, as to the value,. design, condition, merchantability or fitness for particular purpose or fitness for any use of the System or the Project or any portions thereof or any other warranty or representation with respect thereto; (ii) except as provided herein, in no event shall the Authority or the Trustee or their respective agents be liable or responsible for any direct, incidental, indirect, special or consequential damages in connection with or arising out of this Loan Agreement or the Project or the existence, furnishing, functioning or use of the System or the Project or any item or products or services provided for in this Loan Agreement; and (iii) to the extent authorized by law, the Governmental Agency shall indemnify, save and hold harmless the Authority against any and all claims, damages, liability and court awards including costs, expenses and attorney fees incurred as a result of any act or omission by the Governmental Agency, or its employees, agents or subcontractors pursuant to the terms of this Loan Agreement, provided however that the provisions of this clause (iii) are not intended to and shall not be construed as a waiver of any defense or limitation on damages provided for under and pursuant to the Colorado Governmental Immunity Act (Section 24-10-101, et seq., C.R.S.), or under the laws of the United States or other laws of the State o f Colorado. SECTION 3.07 Limited Recourse. No recourse shall be had for the payment of the principal of or interest on the Governmental Agency Bond or for any claim based thereon or upon any obligation, covenant or agreement contained in this Loan Agreement against any past, present or future officer, employee or agent of the Governmental Agency, or of any successor public corporation, as such, either directly or through the Governmental Agency or any successor public corporation, under any rule of law or equity, statute or constitution or by the enforcement of any assessment or penalty or otherwise, and all such liability of any such officers, employees or agents as such is hereby expressly waived and released as a condition of and consideration for the Governmental Agency's execution of this Loan Agreement and the issuance of the Governmental Agency Bond. SECTION 3.08 Option to Prepay Loan Repayments. Subject in all instances to the prior written approval of the Authority and satisfaction of the requirements, if any, of the Bond Resolution relating to Loan prepayments, the Governmental Agency may prepay the principal portion of the Loan Repayments set forth in Exhibit C, in whole or in part (but if in part, in the amount of $100,000 or any integral multiple of $100,000), upon prior written notice not less than ninety (90) days in addition to the number of days advance notice to the Trustee required for any optional or special redemption of the Authority Bonds, to the Authority and the 80012665.1 -24- . I '/ Trustee and upon payment by the Governmental Agency to the Trustee of the principal amount of the Loan Repayments to be prepaid, plus the interest to accrue on such amount to the date of the next succeeding optional redemption of the Authority Bonds allocable to such Loan Repayment to be prepaid; provided, however, that (i) if the Governmental Agency proposes to prepay in full the Loan Repayments set forth in Exhibit C, such prepayment shall be conditioned upon the simultaneous prepayment in full of all Administrative Fees due to and including the date of such redemption plus one year after the date of such redemption or (ii) if the Governmental Agency proposes to prepay any portion of the Loan Repayments set forth in Exhibit C, such prepayment shall be conditioned upon the simultaneous prepayment of such portion of the Administrative Fees due to and including the date of such redemption plus one year after the date of such redemption, as shall be determined by the Authority. In addition, if at the time of such prepayment, the Authority Bonds may only be redeemed at the option of the Authority upon payment of a redemption premium, the Governmental Agency shall add to its prepayment an amount, as determined by the Authority, equal to such redemption premium allocable to such Authority Bonds to be redeemed as a result of the Governmental Agency's prepayment. Prepayments shall be applied first to accrued interest on the portion of the Loan to be prepaid and then to the payment of Administrative Fees and then to principal payments (including redemption premium, if any) on the Loan in inverse order of Loan Repayments. The Governmental Agency, in the sole discretion of the Authority, and upon terms and conditions satisfactory to the Authority, may provide for the prepayment in full of the Loan Repayments by depositing with the Authority an amount which, when added to the investment income to be derived from such amount to be deposited with the Authority, shall provide for the full payment of all such Loan Repayments in the manner provided in this Section 3.08. Any amounts so deposited with the Authority shall be invested solely in direct obligations of the United States o f America. SECTION 3.09 Source of Payment of Governmental Agency's Obligations. The Authority and the Governmental Agency agree that the amounts payable by the Governmental Agency under this Loan Agreement, including, without limitation, the amounts payable by the Governmental Agency pursuant to Section 3.03, Section 3.06, Section 3.08 and Section 5.04 of this Loan Agreement are payable solely from the Revenues and are not payable from any other source whatsoever. Nothing herein shall be deemed to prevent the Governmental Agency from paying the amounts payable under this Loan Agreement from any other legally available source. SECTION 3.10 Delivery of Documents. Concurrently with the execution and delivery of this Loan Agreement, the Governmental Agency will cause to be delivered to the Authority each ofthe following items: (a) opinions of the Governmental Agency's counsel substantially in the form set forth in Exhibit E-1 and E-2 hereto (such opinion may be given by one or more counsel); provided, however, that the Authority may permit variances in such opinion from the form or substance of such Exhibit E if such variances are not to the material detriment of the interests of the holders of the Authority Bonds; 80012665.1 -25- 'f . 1 (b) executed counterparts of this Loan Agreement; (c) copies of the resolutions or ordinances of the governing body of the Governmental Agency authorizing the execution and delivery of this Loan Agreement and the Governmental Agency Bond, certified by an Authorized Officer of the Governmental Agency; and (d) such other certificates, documents, opinions and information as the Authority may require. Concurrently with the delivery at the Loan Closing of this Loan Agreement, the Governmental Agency shall also deliver its Governmental Agency Bond to the Authority upon the receipt of a written certification of the Authority that the moneys to be deposited in the Project Loan Subaccount to fund the Loan shall be so deposited simultaneously with the delivery of the Governmental Agency Bond. ARTICLE IV. ASSIGNMENT SECTION 4.01 Assignment and Transfer by Authority. (a) The Governmental Agency expressly acknowledges that, other than Administrative Fees payable pursuant to subsection (b) of Section 3.03 and the right, title and interest of the Authority under Sections 3.06, 5.04 and 5.07, all right, title and interest of the Authority in, to and under this Loan Agreement and the Governmental Agency Bond has been assigned to the Trustee as security for the Authority Bonds, as applicable, as provided in the Bond Resolution, and that if any Event o f Default shall occur, the Trustee, pursuant to the Bond Resolution, shall be entitled to act hereunder in the place and stead of the Authority. The Governmental Agency hereby acknowledges the requirements of the Bond Resolution applicable to the Authority Bonds and consents to such assignment and appointment. The Authority shall retain the right to compel or otherwise enforce observance and performance by the Governmental Agency of its duties, covenants, obligations and agreements under subsection (b) of Section 3.03 to pay Administrative Fees and under Section 3.06 and Section 5.04. (b) The Governmental Agency hereby approves and consents to any assignment or transfer of this Loan Agreement and the Governmental Agency Bond that the Authority deems to be necessary in connection with any refunding of the Authority Bonds or the issuance of additional bonds under the Bond Resolution or otherwise, in connection with the drinking water revolving fund pooled loan program of the Authority. SECTION 4.02 Assignment by Governmental Agency. Neither this Loan Agreement nor the Governmental Agency Bond may be assigned by the Governmental Agency 80012665.1 -26- . 0 for any reason, unless the following conditions shall be satisfied: (i) the Authority and the Trustee shall have approved said assignment in writing; (ii) the assignee shall be a governmental unit within the meaning of Section 141(c) of the Code and the assignee shall have expressly assumed in writing the full and faithful observance and performance of the Governmental Agency's duties, covenants, agreements and obligations under the Loan Agreement; (iii) immediately after such assignment, the assignee shall not be in default in the performance or observance of any duties, covenants, obligations or agreements of the Governmental Agency under the Loan Agreement; (iv) the Authority shall have received an opinion of bond counsel to the effect that such assignment will not adversely affect the exclusion of interest on the Authority Bonds from gross income for purposes of federal income taxation under Section 103(a) of the Code; and (v) the Authority shall receive an opinion of counsel to the effect that such assignment will not violate the provisions of the Bond Resolution or any agreement entered into by the Authority with, or condition of any grant received by the Authority from, the United States of America relating to the Federal Capitalization Agreement or any capitalization grant received by the Authority or the State under the federal Safe Drinking Water Act Amendments o f 1996, as amended (Pub. L. 104-182). No assignment shall relieve the Governmental Agency from primary liability for any of its obligations under this Loan Agreement and in the event of such assignment, the Governmental Agency shall continue to remain primarily liable for the performance and observance of its obligations to be performed and observed under this Loan Agreement. ARTICLE V. DEFAULTS AND REMEDIES SECTION 5.01 Event of Default. If any of the following events occurs, it is hereby defined as and declared to be and to constitute an "Event of Default": (a) failure by the Governmental Agency to pay, or cause to be paid, any Loan Repayment set forth in Schedule C. required to be paid hereunder when due, which failure shall continue for a period o f ten (10) days; (b) failure by the Governmental Agency to make, or cause to be made, any required payments of principal of, redemption premium, if any, and interest on any bonds, notes or other obligations of the Governmental Agency for borrowed money (other than the Loan and the Governmental Agency Bond), after giving effect to the applicable grace period, the payments of which are secured by the Pledged Property; (c) failure by the Governmental Agency to pay, or cause to be paid, the Administrative Fee or any portion thereof when due or to observe and perform any duty, covenant, obligation or agreement on its part to be observed or performed under this Loan Agreement, other than as referred to in paragraph (a) of this Section 5.01 and other than a failure to comply with the provisions of Section 2.03 hereof, which failure shall continue for a period of thirty (30) days after written notice, specifying such failure and requesting 80012665.1 -27- ... 1 , that it be remedied, is given to the Governmental Agency by the Trustee, unless the Trustee shall agree in writing to an extension of such time prior to its expiration; provided, however, that if the failure stated in such notice is correctable but cannot be corrected within the applicable period the Trustee may not unreasonably withhold its consent to an extension of such time up to sixty (60) days from the delivery of the written notice referred to above if corrective action is instituted by the Governmental Agency within the applicable period and diligently pursued until the Event of Default is corrected; (d) a petition is filed by or against the Governmental Agency under any federal or state bankruptcy or insolvency law or other similar law in effect on the date of this Loan Agreement or thereafter enacted, unless in the case of any such petition filed against the Governmental Agency such petition shall be dismissed within thirty (30) days after such filing and such dismissal shall be final and not subject to appeal; or the Governmental Agency shall become insolvent or bankrupt or make an assignment for the benefit of its creditors; or a custodian (including, without limitation, a receiver, liquidator or trustee of the Governmental Agency or any of its property) shall be appointed by court order to take possession of the Governmental Agency or its property or assets if such order remains in effect or such possession continues for more than thirty (30) days. SECTION 5.02 Notice of Default. The Governmental Agency shall give the Trustee and the Authority prompt telephonic notice of the occurrence of any Event of Default referred to in Section 5.01(d) hereof, and of the occurrence of any other event or condition that constitutes an Event of Default at such time as any senior administrative or financial officer of the Governmental Agency becomes aware of the existence thereof. Any telephonic notice pursuant to this Section 5.02 shall be confirmed in writing by the end of the next Business Day (as defined in the Bond Resolution). SECTION 5.03 Remedies on Default. Whenever an Event of Default referred to in Section 5.01 hereof shall have occurred and be continuing, the Authority shall have the right to take or to direct the Trustee to take any action permitted or required pursuant to the Loan Agreement and to take whatever other action at law or in equity may appear necessary or desirable to collect the amounts then due and thereafter to become due hereunder or to enforce the performance and observance of any duty, covenant, obligation or agreement of the Governmental Agency hereunder, including, without limitation, to obtain ex parte the appointment of a receiver of the System. SECTION 5.04 Attorney's Fees and Other Expenses. The Governmental Agency shall on demand pay to the Authority or the Trustee the reasonable fees and expenses of attorneys and other reasonable fees and expenses (including without limitation the reasonably allocated costs of in-house counsel and legal staff) incurred by either of them in the collection of Loan Repayments or any other sum due hereunder or in the enforcement of performance or observation of any other duties, covenants, obligations or agreements of the Governmental Agency. 80012665.1 -28- .. !j SECTION 5.05 Application of Moneys. Any moneys collected by the Authority or the Trustee pursuant to Section 5.03 hereof shall be applied (a) first, to pay any attorney's fees or other fees .and expenses owedby the.Governmental Agency pursuant to Section 5.04 hereof, (b) second, to pay interest due and payable on the Loan, (c) third, to pay principal due and payable on the Loan, (d) fourth, to pay any other amounts due and payable under this Loan Agreement; and (e) fifth, to pay interest and principal on the Loan and other amounts payable hereunder as such amounts become due and payable. SECTION 5.06 No Remedy Exclusive; Waiver; Notice. No remedy herein conferred upon or reserved to the Authority or the Trustee is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Loan Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right, remedy or power accruing upon any Event of Default shall impair any such right, remedy or power or shall be construed to be a waiver thereof, but any such right, remedy or power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than such notice as may be required in this Article V. SECTION 5.07 Retention of Authority's Rights. Notwithstanding any assignment or transfer of this Loan Agreement pursuant to the provisions hereof or of the Bond Resolution, or anything else to the contrary contained herein, the Authority shall have the right upon the occurrence of an Event of Default to take any action, including (without limitation) bringing an action against the Governmental Agency at law or in equity, as the Authority may, in its discretion, deem necessary to enforce the obligations of the Governmental Agency to the Authority pursuant to Section 3.03, Section 3.06 and Section 5.04 hereof. SECTION 5.08 Default by the Authority. In the event of any default by the Authority under any duty, covenant, agreement or obligation of this Loan Agreement, the Governmental Agency's remedy for such default shall be limited to injunction, special action, action for specific performance or any other available equitable remedy designed to enforce the performance or observance of any duty, covenant, obligation or agreement of the Authority hereunder as may be necessary or appropriate. The Authority shall on demand pay to the Governmental Agency the reasonable fees and expenses of attorneys and other reasonable expenses in the enforcement of such performance or observation. ARTICLE VI. MISCELLANEOUS SECTION 6.01 Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when hand-delivered or mailed by registered or certified mail, postage prepaid, to the Governmental Agency at the address specified on Exhibit B attached hereto and made a part hereof and to the Authority, the Trustee and the Loan Servicer at the following addresses: 80012665.1 -29- .. . , /1 (a) Authority: Colorado Water Resources and Power Development Authority 1580 Logan Street, Suite 620 Denver, Colorado 80203 Attention: Executive Director (b) Trustee : Wells Fargo Bank, N.A. 1740 Broadway MAC C7301-024 Denver, Colorado 80274 Attention: Corporate Trust Services (c) Loan Servicer: Wells Fargo Bank, N.A. 1740 Broadway MAC C7301-024 Denver, Colorado 80274 Attention: Corporate Trust Services Any of the foregoing parties may designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent, by notice in writing given to others. SECTION 6.02 Binding Effect. This Loan Agreement shall inure to the benefit of and shall be binding upon the Authority and the Governmental Agency and their respective successors and assigns. SECTION 6.03 Severability. In the event any provision of this Loan Agreement shall be held illegal, invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate, render unenforceable or otherwise affect any other provision hereof. SECTION 6.04 Amendments, Supplements and Modifications. This Loan Agreement may not be amended, supplemented or modified without the prior written consent of the Authority and the Governmental Agency. SECTION 6.05 Execution in Counterparts. This Loan Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 6.06 Applicable Law and Venue. This Loan Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, including the Act. Venue for any action seeking to interpret or enforce the provisions of this Loan Agreement shall be in the Denver District Court. 80012665.1 -30- .'. , ' 1, SECTION 6.07 Consents and Approvals. Whenever the written consent or approval of the Authority shall be required under the provisions of this Loan Agreement, such consent or approval may only be given by the Authority unless otherwise provided by law or by rules, regulations or resolutions of the Authority or unless expressly delegated to the Trustee. SECTION 6.08 Captions. The captions or headings in this Loan Agreement are for convenience only and shall not in any way define, limit or describe the scope or intent of any provisions or sections of this Loan Agreement. SECTION 6.09 Compliance with Bond Resolution. The Governmental Agency covenants and agrees to take such action as the Authority shall reasonably request so as to enable the Authority to observe and comply with, all duties, covenants, obligations and agreements contained in the Bond Resolution insofar as such duties, covenants, obligations and agreements relate to the obligations of the Governmental Agency under this Loan Agreement. SECTION 6.10 Further Assurances. The Governmental Agency shall, at the request of the Authority, authorize, execute, acknowledge and deliver such further resolutions, conveyances, transfers, assurances, financing statements and other instruments as may be necessary or desirable for better assuring, conveying, granting, assigning and confirming the rights and agreements granted or intended to be granted by this Loan Agreement and the Governmental Agency Bond. SECTION 6.11 Recital. This Loan Agreement is authorized pursuant to and in accordance with the Constitution of the State of Colorado and all other laws of the State of Colorado thereunto enabling. Specifically, but not by way of limitation, this Loan Agreement is authorized by the Governmental Agency pursuant to Title 31, Article 35, Part 4, C.R.S., Title 37, Article 45.1, C.R.S., and Title 11, Article 57, Part 2, C.R.S and shall so recite in the Governmental Agency Bond. Such recitals shall conclusively impart full compliance with all provisions and limitations of such laws and shall be conclusive evidence of the validity and regularity of the issuance of the Governmental Agency Bond, and the Governmental Agency Bond delivered by the Governmental Agency to the Authority containing such recital shall be incontestable for any cause whatsoever after its delivery for value. 80012665.1 -31- 0, . 4 1 IN WITNESS WHEREOF, the Authority and the Governmental Agency have caused this Loan Agreement to be executed, and delivered, as of the Loan Closing. COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY By: Executive Director (SEAL) TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE By: Mayor ATTEST: Clerk 80012665.1 -32- .. 1/ . 0 EXHIBIT A SECURITY DESCRIPTION 1. Description of Proiect The project consists of changing treatment technologies to a membrane filter technology and a capacity increase at the Mary's Lake Water Treatment Plant from 2 mgd to 4 mgd. 2. Description of System "System" shall mean, the Governmental Agency's water system now owned or hereafter acquired, whether situated within or without its boundaries, including all present or future improvements, extensions, enlargements, betterments, replacements, or additions thereof or thereto. 3. Lien Representation The Pledged Property is free and clear of any pledge, lien, charge or encumbrance thereon or with respect thereto which is superior to the lien of this Loan Agreement and the Governmental Agency Bond on the Pledged Property, and all corporate or other action on the part of the Governmental Agency to that end has been and will be duly and validly taken. As of the date of this Loan Agreement there are outstanding no bonds, notes or evidences of indebtedness or contractual obligations secured by a lien on the Pledged Property which are on a parity with the lien of the Loan Agreement and Governmental Agency Bond. Except as permitted by Exhibit F hereto, the Governmental Agency shall not issue any bonds or other evidences of indebtedness of a similar nature secured by a pledge, lien or assignment on the Pledged Property or create a lien or charge thereon. 4. Pledged Property "Pledged Property" means the Net Revenues (as defined in this paragraph 4 of Exhibit A ofthis Loan Agreement). "Net Revenues for any period means the Revenues (as defined in this paragraph (4) of Exhibit A of this Loan Agreement) during such period less Operating Expenses (as defined in this paragraph (4) of Exhibit A o f this Loan Agreement). "Revenues shall mean (a) all revenues, income, rents and receipts earned by the Governmental Agency from or attributable to the ownership and operation of the System, (b) the proceeds of any insurance covering business interruption loss relating to the System, and (c) interest earned on any moneys or investments which are required to be paid into any fund or account pledged to the payment of this Loan Agreement and the Governmental Agency Bond. Notwithstanding anything contained above, amounts deposited in a rate stabilization account 80012665.1 A-1 .t , 1, V shall not be deemed Revenues in the calendar year deposited and amounts withdrawn from the rate stabilization Account shall be deemed Revenues in the year withdrawn. "Operating Expenses" shall mean all actual maintenance and operation costs of the System incurred by the Governmental Agency in any particular period or charges made therefor during such period, but only if such charges are made in conformity with Generally Accepted Accounting Principles (as defined in paragraph (4) of Exhibit A of this Loan Agreement) including amounts reasonably required to be set aside in reserves for items of Operating Expenses the payment of which is not then immediately required. Such Operating Expenses include, but are not limited to, expenses for ordinary repairs, renewals and replacements of the System, salaries and wages, employees' health, hospitalization, pension and retirement expenses, fees for services, materials and supplies, rents, administrative and general expenses, insurance expenses, legal, engineering, accounting, trustee, paying agent and financial advisory fees and expenses and costs of other consulting and technical services, taxes (except as set forth in the following paragraph), payments in lieu of taxes and other governmental charges, payments to the United States Treasury pursuant to Section 148(f) of the Code or similar requirement to pay rebate, fuel costs, and any other current expenses or obligations required to be paid by the Governmental Agency by law, all to the extent properly allocable to the System. Such Operating Expenses do not include depreciation or obsolescence charges or reserves, amortization of intangibles or other bookkeeping entries of a similar nature, interest charges and charges for the payment of principal, or amortization, of bonded or other indebtedness of the Governmental Agency, costs, or charges made therefor, for capital additions, replacements, betterments, extensions or improvements to or retirements from the System which under Generally Accepted Accounting Principles are properly chargeable to the capital account or the reserve for depreciation, and do not include losses from the sale, abandonment, reclassification, revaluation or other disposition of any properties of the System nor such property items, including taxes and fuel, which are capitalized pursuant to the then existing accounting practice of the Governmental Agency. " Generally Accepted Accounting Principles" shall mean accounting principles, methods and terminology followed and construed for enterprises which are employed in business comparable to the business of the Governmental Agency, as amended from time to time. 5. Rate Covenant The Governmental Agency shall establish and collect rates and charges for the use or the sale of the products and services of the System, which together with other moneys available therefor, are expected to produce Revenues (as defined in paragraph (4) of this Exhibit A to this Loan Agreement) for each calendar year which will be at least sufficient for such calendar year to pay the sum of: 80012665.1 A-2 I . ,0 U (a) all amounts estimated to be required to pay Operating Expenses (as defined in paragraph (4) of this Exhibit A of this Loan Agreement) during such calendar year; (b) a sum equal to 110% of the debt service due on the Governmental Agency Bond for such calendar year and debt service coming due during such calendar year on any obligations secured by a lien on the Pledged Property which lien is on a parity with the lien of this Loan Agreement on the Pledged Property, in each case computed as of the beginning of such calendar year; (c) the amount, if any, to be paid during such calendar year into any debt service reserve account in connection with any obligations secured by a lien on the Pledged Property which lien is on a parity with the lien of this Loan Agreement on the Pledged Property; (d) a sum equal to the debt service on any obligations secured by a lien on the Pledged Property which lien is subordinate to the lien of this Loan Agreement on the Pledged Property for such calendar year computed as of the beginning of such calendar year; and (e) amounts necessary to pay and discharge all charges and liens or other indebtedness not described above payable out o f the Revenues during such calendar year. Notwithstanding anything contained above, amounts deposited in a rate stabilization account shall not be deemed Revenues (as defined in paragraph 4. of this Exhibit A to this Loan Agreement) in the calendar year deposited and amounts withdrawn from the rate stabilization account shall be deemed Revenues (as defined in paragraph 4. of this Exhibit A to this Loan Agreement) in the year withdrawn. 80012665.1 A-3 .'. .U. 1 EXHIBIT B DESCRIPTION OF THE LOAN 1. Address of Governmental Agency: Town of Estes Park, Colorado, Acting By and Through its Water Activity Enterprise Estes Park Municipal Building P.O. Box 1200 170 MacGregor Ave Estes Park, Colorado 80517 2. Cost of Project: $5,984,000 3. Principal Amount of Loan Commitment: $5,500,000 4. Loan Term: The date commencing on the Loan Closing and ending on the final Loan Repayment date set forth in Exhibit C. 5. Description of the Project: See Exhibit A, 1. 6. Authorized Officers: 7. Project Completion Date: 80012665.1 B-1 0 . .. U EXHIBIT C LOAN REPAYMENT SCHEDULE Loan Principal Principal Total Interest Total Loan Repayment Portion of Portion of Principal Portion of Repayment Date Loan Loan Loan Repayment' Repayment2 Repayment3 1 Allocated to Principal of Authority Bonds. 2 Allocated to Authority Funds Deposited in Project Loan Subaccount. 3 Allocated to Interest on Authority Bonds. 80012665.1 C-1 . 4 EXHIBIT D GOVERNMENTAL AGENCY BOND FOR VALUE RECEIVED, the undersigned, TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE (the "Governmental Agency") hereby promises to pay to the COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY (the "Authority"), or registered assigns, the principal amount of Five Million, Five Hundred Thousand Dollars ($5,500,000), at the times and in the amounts determined as provided in the Loan Agreement dated as of June 1, 2008, by and between the Authority and the Governmental Agency (the "Loan Agreement"), together with interest thereon in the amount calculated as provided in the Loan Agreement, payable on the dates and in the amounts determined as provided in the Loan Agreement. This Governmental Agency Bond is issued pursuant to the Loan Agreement and is issued in consideration of the loan made thereunder (the "Loan") and to evidence the obligations of the Governmental Agency thereunder to make the Loan Repayments (as defined in the Loan Agreement). This Governmental Agency Bond has been assigned to Wells Fargo Bank, N.A., as trustee (the "Trustee") under the Bond Resolution (as defined in the Loan Agreement) and payments hereunder shall, except as otherwise provided in the Loan Agreement, be made directly to the Loan Servicer (as defined in the Bond Resolution) for the account of the Authority pursuant to such assignment. Such assignment has been made as security for the payment of the Authority Bonds (as defined in the Bond Resolution) issued to finance or refinance, and in connection with, the Loan and as otherwise described in the Loan Agreement. All of the terms, conditions and provisions of the Loan Agreement are, by this reference thereto, incorporated herein as a part o f this Governmental Agency Bond. This Governmental Agency Bond is entitled to the benefits and is subject to the conditions of the Loan Agreement. The obligations of the Governmental Agency to make the payments required hereunder shall be absolute and unconditional without any defense or right of setoff, counterclaim or recoupment by reason of any default by the Authority under the Loan Agreement or under any other agreement between the Governmental Agency and the Authority or out of any indebtedness or liability at any time owing to the Governmental Agency by the Authority or for any other reason. This Governmental Agency Bond is subject to optional prepayment under the terms and conditions, and in the amounts provided in Section 3.08 of the Loan Agreement. The obligation of the Governmental Agency to make payments under the Loan Agreement and this Governmental Agency Bond is a special and limited obligation of the Government Agency and is payable solely from the repayment source described in the Loan Agreement and the obligation of the Governmental Agency to pay the Loan Repayments is secured by an irrevocable pledge and lien (but not necessarily an exclusive lien) upon the Pledged Property (as defined in paragraph 4. of Exhibit A of the Loan Agreement). This Governmental Agency Bond does not constitute a debt or an indebtedness of the Governmental Agency, or the Town of Estes 80012665.1 I)-1 Park, Colorado, within the meaning of any constitutional, charter or statutory provision or limitation. This Governmental Agency Bond is not payable in whole or in part from the proceeds of general property taxes, and the full faith and credit of the Governmental Agency, or the Town of Estes Park, Colorado, is not pledged for the payment of the principal of or interest on this Governmental Agency Bond. This Governmental Agency Bond is issued under the authority of and in full conformity with the Constitution and laws of the State of Colorado, including without limitation, Article X, Section 20 of the Constitution Title 31, Article 35, Part 4, C.R.S., Title 37, Article 45.1, C.R.S.; certain provisions of Title 11, Article 57, Part 2, C.R.S. (the "Supplemental Act"), and pursuant to the Loan Agreement. Pursuant to Â§11-57-210, of the Supplemental Act, such recital shall be conclusive evidence of the validity and regularity of the issuance of this Governmental Agency Bond after its delivery for value. Pursuant to Â§31-35-413, C.R.S., such recital shall conclusively impart full compliance with all the provisions of such Part 4, and this Governmental Agency Bond issued containing such recital is incontestable for any cause whatsoever after its delivery for value. IN WITNESS WHEREOF, the Governmental Agency has caused this Governmental Agency Bond to be duly executed, sealed and delivered, as of this 1 st day of June, 2008. (SEAL) TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE By: Mayor ATTEST: Clerk 80012665.1 D-2 0 '' . EXHIBIT E-1 OPINION OF GOVERNMENTAL AGENCY COUNSEL [LETTERHEAD OF COUNSEL TO GOVERNMENTAL AGENCY] [Date o f Closing] Colorado Water Resources and Power Development Authority Wells Fargo Bank, National Association as Trustee as Representative of the Underwriters Ladies and Gentlemen: I am an attorney admitted to practice in the State of Colorado and I have acted as counsel to the TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE (the "Governmental Agency"), which has entered into a Loan Agreement (as hereinafter defined) with the COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY (the "Authority"), and have acted as such in connection with the authorization, execution and delivery by the Governmental Agency of the Loan Agreement and its Governmental Agency Bond (as hereinafter defined). In so acting I have examined the Constitution and laws of the State of Colorado. I have also examined originals, or copies certified or otherwise identified to my satisfaction, of the following: 1. The Authority's Drinking Water Revolving Fund 2008 Series A Revenue Bond Resolution, adopted by the Authority on April 25,2008 (the "Bond Resolution"); 2. the Loan Agreement, dated as of June 1, 2008 (the "Loan Agreement") by and between the Authority and the Governmental Agency; 3. proceedings of the governing body of the Governmental Agency relating to the approval of the Loan Agreement and the execution, issuance and delivery thereof on behalf of the Governmental Agency, and the authorization of the undertaking and completion of the Project (as defined in the Loan Agreement); 80012665.1 E-1-1 . i. . 0 U I . 4. the Governmental Agency Bond, dated June 1, 2008 (the "Governmental Agency Bond") issued by the Governmental Agency to the Authority to evidence the Loan (as defined in the Loan Agreement); 5. proceedings of the governing body of the Governmental Agency relating to the issuance of the Governmental Agency Bond and the execution, issuance and delivery thereof to the Authority (the Loan Agreement and the Governmental Agency Bond are referred to herein collectively as the "Loan Documents"); and 6. all outstanding instruments relating to bonds, notes or other indebtedness of or relating to the Governmental Agency. I have also examined and relied upon originals, or copies certified or otherwise authenticated to my satisfaction, of such other records, documents, certificates and other instruments, and made such investigation of law as in my judgment I have deemed necessary or appropriate to enable me to render the opinions expressed below. Based upon the foregoing, I am of the opinion that: 1. The Governmental Agency is a "governmental agency" within the meaning of the Authority's enabling legislation with the legal right to carry on the business of the System (as defined in the Loan Agreement) as currently being conducted and as proposed to be conducted. 2. The Governmental Agency has full legal right and authority to execute the Loan Documents and to observe and perform its duties, covenants, obligations and agreements thereunder and to undertake and complete the Project; subject, however, to the effect of, restrictions and limitations imposed by or resulting from, bankruptcy, insolvency, moratorium, reorganization, debt adjustment or other similar laws affecting creditors' rights generally (Creditor's Rights Limitations) heretofore or hereafter enacted. 3. The proceedings o f the Governmental Agency' s governing body approving the Loan Documents and authorizing their execution, issuance and delivery on behalf of the Governmental Agency, and authorizing the Governmental Agency to undertake and complete the Project have been duly and lawfully adopted and authorized in accordance with applicable Colorado law, (hereinafter collectively called the "Authorizing Resolutions"), which Authorizing Resolutions were duly approved and published in accordance with applicable Colorado law, at a meeting or meetings which were duly called pursuant to necessary public notice and held in accordance with applicable Colorado law, and at which quorums were present acting throughout. 4. To the best of my knowledge, after such investigation as I have deemed appropriate, the authorization, execution and delivery of the Loan Documents by the Governmental Agency, the observation and performance by the Governmental 80012665.1 E-1-2 .l , Agency of its duties, covenants, obligations and agreements thereunder and the consummation of the transactions contemplated therein and the undertaking and completion of the Project do not and will. not contravene any existing law or any existing order, injunction, judgment, decree, rule or regulation of any court or governmental or administrative agency, authority or person having jurisdiction over the Governmental Agency or its property or assets or result in a breach or violation of any of the terms and provisions of, or constitute a default under, any existing bond resolution, trust agreement, indenture, mortgage, deed or trust or other agreement to which the Governmental Agency is a party or by which it, the System (as defined in the Loan Agreement) or its property or assets is bound. 5. To the best of my knowledge, after such investigation as I have deemed appropriate, all approvals, consents or authorizations of, or registrations of or filings with, any governmental or public agency, authority or person required to date on the part of the Governmental Agency in connection with the authorization, execution, delivery and performance of the Loan Documents and, other than authorizations, licenses and permits relating to the siting, construction and acquisition of the Project which we expect the Governmental Agency to receive in the ordinary course of business, the undertaking and completion of the Project have been obtained or made. 6. To the best of my knowledge, after such investigation as I have deemed appropriate, there is no litigation or other proceeding pending or threatened in any court or other tribunal of competent jurisdiction (either State of Federal) questioning the creation, organization or existence of the Governmental Agency or the validity, legality or enforceability of the Loan Documents or the undertaking or completion of the Project or which if adversely determined, could (a) materially adversely affect (i) the financial position of the Governmental Agency, (ii) the ability of the Governmental Agency to perform its obligations under the Loan Documents, (iii) the security for the Loan Documents, or (iv) the transactions contemplated by the Loan Documents, or (b) impair the ability of the Governmental Agency to maintain and operate its system. This opinion is rendered on the basis of Federal law and the laws of the State of Colorado as enacted and construed on the date hereof. I express no opinion as to any matter not set forth in the numbered paragraphs herein. 80012665.1 E-1-3 1' . , L /' I hereby authorize Fulbright & Jaworski L.L.P., Bond Counsel, and Carlson, Hammond & Paddock L.L.C., General Counsel to the Authority, to rely on this opinion as if I had addressed this opinion to them in addition to you. Very truly yours, 80012665.1 E-1-4 #. 0, 14 , EXHIBIT E-2 OPINION OF GOVERNMENTAL AGENCY BOND COUNSEL [LETTERHEAD OF BOND COUNSEL TO GOVERNMENTAL AGENCY] [Date of Closing-1 Colorado Water Resources and Power Development Authority Wells Fargo Bank, National Association as Trustee as Representative of the Underwriters Ladies and Gentlemen: We have acted as bond counsel to the TOWN OF ESTES PARK, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE (the "Governmental Agency"), which has entered into a Loan Agreement (as hereinafter defined) with the COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY (the "Authority"), and have acted as such in connection with the authorization, execution and delivery by the Governmental Agency of the Loan Agreement and its Governmental Agency Bond (as hereinafter defined). In so acting we have examined the Constitution and laws of the State of Colorado and by-laws of the Governmental Agency. We have also examined originals, or copies certified or otherwise identified to [insert "my" or "our"] satisfaction, ofthe following: 1. The Authority's Drinking Water Revolving Fund 2008 Series A Revenue Bond Resolution, adopted by the Authority on April 25,2008 (the "Bond Resolution"); 2. the Loan Agreement, dated as of June 1,2008 (the "Loan Agreement") by and between the Authority and the Governmental Agency; 3. the proceedings of the governing body of the Governmental Agency relating to the approval of the Loan Agreement and the execution, issuance and delivery thereo f on behalf of the Governmental Agency; 4. the Governmental Agency Bond, dated June 1, 2008 (the "Governmental Agency Bond") issued by the Governmental Agency to the Authority to evidence the Loan (as defined in the Loan Agreement); and 80012665.1 E-2-1 I . 5. proceedings of the governing body of the Governmental Agency relating to the issuance of the Governmental Agency Bond and the execution, issuance and delivery thereof to the Authority (the Loan Agreement and the Governmental Agency Bond are referred to herein collectively as the "Loan Documents"); and We have also examined and relied upon originals, or copies certified or otherwise authenticated to [insert "my" or "our"] satisfaction, of such other records, documents, certificates and other instruments, and made such investigation of law as in our judgment we have deemed necessary or appropriate to enable us to render the opinions expressed below. Based upon the foregoing, we are of the opinion, as of the hereof, that: 1. The Governmental Agency is a "governmental agency" within the meaning of the Authority's enabling legislation. 2. The Governmental Agency has full legal right and authority to execute the Loan Documents and to observe and perform its duties, covenants, obligations and agreements thereunder and to undertake and complete the Project; subject, however, to the effect of, and to restrictions and limitations imposed by or resulting from, bankruptcy, insolvency, moratorium, reorganization, debt adjustment or other similar laws affecting creditors' rights generally ( collectively, "Creditor's Rights Limitations") heretofore or hereafter enacted or other laws, judicial decisions, and principles of equity relating to the enforcement } of contractual obligations generally. 3. The Governmental Agency has pledged the Pledged Property as described in paragraph 4 of Exhibit A to the Loan Agreement for the punctual payment of the principal of and interest on the Loan and all other amounts due under the Loan Documents according to their respective terms and the Authority has a lien but not necessarily an exclusive first lien on such source of repayment. No filings or recordings are required under the Colorado Uniform Commercial Code in order to provide a first lien on such source of repayment and all actions have been taken as required under Colorado law to insure the priority, validity and enforceability of such lien. 4. The Loan Documents have been duly authorized, executed and delivered by the authorized officers of the Governmental Agency; and, assuming in the case of the Loan Agreement, that the Authority has all the requisite power and authority to authorize, execute and deliver, and has duly authorized, executed and delivered, the Loan Agreement, the Loan Documents constitute the legal, valid and binding obligations of the Governmental Agency enforceable in accordance with their respective terms; subject, however, to the effect of, and to restrictions and limitations imposed by or resulting from Creditor's Rights Limitations or other laws, judicial decisions and principles of equity relating to the enforcement of contractual obligations generally. 80012665.1 E-2-2 . 1 , 0, ' 4 . i. 5. Assuming compliance with the covenants contained in the Loan Agreement, the Governmental Agency is not, directly or indirectly, (a) using in excess of ten percent of the proceeds of the Authority Bonds (as defined in the Loan Agreement) loaned to the Governmental Agency or the Project in a manner that would constitute "private business use" within the meaning of Section 141(b)(6) of the Internal Revenue Code of 1986, as amended (the "Code"), and at least one- half o f such private business use permitted by clause (a) is neither unrelated to the governmental use of the proceeds of the Authority Bonds loaned to the Governmental Agency (within the meaning of Section 141(b)(3)(A)(ii)(I) or (III) of the Code) nor disproportionate related business use (within the meaning of Section 141(b)(3)(A)(ii)(II) or (III) of the Code) nor (B) using, directly or indirectly, any of the proceeds of the Authority Bonds loaned to the Governmental Agency to make or finance loans to persons other than governmental units (as such terms are used in Section 141(c) of the Code). 6. The execution and delivery of the Loan Documents are not subject to the limitations of Article X, Section 20 of the Colorado Constitution ("TABOR") since the System (as defined in the Loan Agrement) as of the date hereof constitutes an enterprise under TABOR. The performance of the obligations of the Governmental Agency under the Loan Documents is not subject to the limitations of TABOR as long as the System continues to qualify as an enterprise under TABOR. If the System is not longer an enterprise under TABOR, the Loan Documents will continue to constitute legal, valid and binding obligations of the Governmental Agency enforceable in accordance with their respective terms; subject, however, to (a) Creditor's Rights Limitations or other laws, judicial decisions and principles of equity relating to the enforcement of contractual obligation generally, and (b) subject to the next sentence, the revenue and spending limitations of TABOR. If the System at any time fails to be an enterprise under TABOR, (a) the Governmental Agency may continue to impose any increase in fees, rates and charges of the System without voter approval; (b) all revenues of the Governmental Agency used to pay Loan Repayments (as defined in the Loan Agreement) shall be included in the Governmental Agency's fiscal year spending limit under Section 7(d) of TABOR, except that debt service changes and reductions are exceptions to, and not part of, the Governmental Agency's revenue and spending base and limits; and (c) if the Governmental Agency is required to reduce spending in order to comply with its fiscal year spending limit under Section 7(b) of TABOR, the Governmental Agency will first be required to reduce spending for purposes for which it does not have an obligation under law or by contract prior to reducing spending required to comply with the other covenants contained in the Loan Documents. The opinions set forth in paragraphgs numbered 2 and 4 above are further qualified and limited to the extent that we express no opinion as the the authority of the Governmental Agency to agree to perform, or as to the enforceability of, the following provisions of the Loan Agreement 80012665.1 E-2-3 I . , and of the Governmental Agency Bond (to the extent such provisions of the Loan Agreement are incorporated in the Governmental Agency Bond): (a) Section 3.03 (d) and (e) to the extent that amounts that may become due thereunder would cause the net effective interest rate on the Loan to exceed the net effective interest rate authorized; (b) Section 3.06 to the extent that it requires the Governmental Agency to indemnify the Authority. In addition, the enforceability of the Loan Agreement and the Governmental Agency Bond is subject to judicial discretion, to the exercise by the State of Colorado and its governmental bodies of the police power inherent in the sovereignty of the State, and to the exercise by the United States of America of the powers delegated to it by the Constitution of the United States o f America. This opinion is rendered on the basis of Federal law and the laws of the State of Colorado as enacted and construed on the date hereof. We express no opinion as to any matter not set forth in the numbered paragraphs herein. We hereby authorize Fulbright & Jaworski L.L.P., Bond Counsel, and Carlson, Hammond & Paddock L.L.C., General Counsel to the Authority, to rely on this opinion as if we had addressed this opinion to them in addition to you. Very truly yours, 80012665.1 E-2-4 I .1 1 EXHIBIT F ADDITIONAL COVENANTS AND REQUIREMENTS Audit Requirements. For each year in which the Governmental Agency requests a disbursement from the Project Loan Subaccount, the Governmental Agency shall conduct its annual audit in accordance with the federal Single Audit Act, 31 U.S.C. Â§ 7501 et seq. Additional Senior, Parity and Subordinate Lien Bonds. The Governmental Agency covenants that it will not issue any obligations payable out of, or secured by a lien or charge on the Pledged Property which is superior to the lien or charge of this Loan Agreement on the Pledged Property. In addition, the Governmental Agency covenants that it will not issue any obligations payable out of, or secured by a lien or charge on the Pledged Property which is on a parity with the lien or charge of this Loan Agreement on the Pledged Property, unless the Governmental Agency certifies to the Authority that Net Revenues (as defined in paragraph 4. of Exhibit A to this Loan Agreement and subj ect to the next sentence) for any 12 consecutive months out of the 18 months preceding the month in which such obligations are to be issued is at least equal to the sum of (a) 110% of the maximum annual debt service of (i) this Loan Agreement and all outstanding obligations of the Governmental Agency payable out of, or secured by a lien or charge on the Pledged Property which is on a parity with the lien or charge of this Loan Agreement on the Pledged Property, and (ii) such proposed obligations to be issued, and (b) 100% of the maximum annual debt service of all obligations payable out of, or secured by a lien or charge on the Pledged Property which, is subordinate to the lien or charge of this Loan Agreement on the Pledged Revenues. Net Revenues may be adjusted to reflect any rate increases prior to the issuance of such additional obligations by adding to the actual Net Revenues for such period an estimated sum equal to 100% of the estimated increase in Net Revenues which would have been realized during such period had such rate increase been in effect during all of such period. Notwithstanding the foregoing, the Governmental Agency may issue refunding obligations payable out of, or secured by a lien or charge on the Pledged Property, without compliance with the requirements stated above, provided that the debt service payments on such refunding obligations do not exceed the debt service payments on the refunded obligations during any calendar year. In addition, the Governmental Agency covenants that it will not issue any obligations payable out of, or secured by a lien or charge on the Pledged Property which is subordinate to the lien or charge of this Loan Agreement on the Pledged Property, unless the Governmental Agency certifies to the Authority that for any 12 consecutive months out of the 18 months preceding the month in which such obligations are to be issued Net Revenues were at least 100% of the maximum annual debt service on all obligations payable out of, or secured by a lien or charge on the Pledged Property, which are outstanding during such period. Operations and Maintenance Reserve Fund. The Governmental Agency shall maintain an operations and maintenance reserve in an amount equal to three months of operation and maintenance expenses excluding depreciation of the System as set forth in the annual budget for 80012665.1 F-1 I 1 . the current fiscal year but in no event greater than $1,250,000. Said reserve may be in the form of unobligated fund balances or other unobligated cash or securities (i.e., capital reserves) or rnay be in a separate segregated fund and shall be maintained as a continuing reserve for payment of any lawful purpose relating to the System. If the operations and maintenance reserves fall below this requirement, the shortfall shall be made up in 24 substantially equal monthly installments beginning the second month after such shortfall or the date of delivery. Rate Study. In the event that Revenues collected during a fiscal year are not sufficient to meet the requirements set forth in the Rate Covenant contained in paragraph 5. of Exhibit A of this Loan Agreement, the Governmental Agency shall, within 90 days of the end of such fiscal year, cause an independent firm of accountants or consulting engineers, to prepare a rate study for the purpose of recommending a schedule of rates, fees and charges for the use of the System which in the opinion of the firm conducting the study will be sufficient to provide Revenues to be collected in the next succeeding fiscal year which will provide compliance with the Rate Covenant described in paragraph 5. of Exhibit A of this Loan Agreement. Such a study shall be delivered to the Authority and the Trustee. The Governmental Agency shall within six months of receipt of such study, adopt rates, fees and charges for the use of the System, based upon the recommendations contained in such study, which provide compliance with said rate covenant. Special Fund. The Governmental Agency covenants to create a special fund into which shall be deposited the Revenues (as defined in paragraph 4. of Exhibit A to this Loan Agreement). The Revenues shall be applied, on or before the last day of each month, first to the payment of the Operating Expenses (as defined in paragraph 4. of Exhibit A to this Loan Agreement) and then applied to the payment of the Loan Repayments and other amounts payable on a parity with the Loan Repayments. Any further application shall be as provided by ordinance or resolution of the Governmental Agency. Technical Managerial and Financial Capacity Requirement. As described in the Technical/Managerial/Financial (TMF) Capacity Evaluation Report dated February 8,2008, the Governmental Agency shall have plans and specifications for all new process additions approved by the Colorado Department of Public Health and Environment, the Water Quality Control Division, and the Governmental Agency shall be provided with as-built drawings as part of the process revision. The as-built drawings must include a as a minimum plan view (and elevation views for underground components), pipe/vessel component material, size, and include all pipes, valves, connectors and storage devices. 80012665.1 F-2 h . TOWN of ESTES PARK ESTES PARK Public Works Department COLORADO INTER-OFFICE MEMORANDUM DATE: April 18,2008 TO: Town Board FROM: Scott Zurn SUBJECT: Air Curtain for Tree and Slash Burner Background: At the February Public Works Committee meeting, staff presented information regarding the Bark Beetle infestation in the Estes Valley and options for mitigation. Staff has researched grinding and burning the infested trees. The process of grinding, hauling and disposing of the tree material after grinding will soon become cost prohibitive. Staff has discussed this with Light and Power because that department generates an enormous amount of tree slash and removed trees in their trimming program to protect the power lines. Staff has also discussed this with the Fire Department as relates to their mitigation program and the Town's Christmas tee disposal. Staff has looked at the purchase of an Air Curtain Burner for disposal of the Beetle trees and slash generated within the Estes Valley by Town departments and citizens. This burner meets all EPA regulations, and it is the approved bid winner by the Federal Government GSA program. The Town can purchase an Air Burner and receive the Federal GSA bid pricing. This would be a ioint purchase between Public Works and Light and Power. Staff feels that the Air Curtain would pay for itself within the first two to three years. We would like to purchase this Air Curtain Burner and set it up on the Town's dump site located on Elm Road. Cost/Budget: Cost: Air Burners LLC. Palm City, Florida S-217 Air Curtain Burner (includes freight) . $ 82,807 Budaet: $12,000 - 101-5200-452-24-01 /p.155 Parks $ 5,000 - 101-5200-452-25-01 /p.156 Parks $65,807 - 502-7001-580-35-57 /p.323 Light & Power Cost: $82,807 Action: Staff recommends: 1 Purchasing the S-217 Air Curtain burner from Air Burners LLC. Palm City, Florida for the cost of $82,807 as a ioint department purchase as listed above. ' Placing the burner on the Town's dump site located on Elm Road. 1. .. I , r U M O 66; U WB~Vd s31 40 1soO JO ped JeAOOG] 01 X1!Ilin JOJ sheAA. CON NE~rA:HARGE -IZEZ:210Mrte trYJ-'ew customers Xpedeo luelsks pelonilsuo0 - e 61 e 4 0 aul!1-GUO, s146!J JawAA- .4. ... 0 -0 6,1 U E 00 0 12 U) .Lp 00 Connection Charge Components >I W~ 5 1 JeleAA peselloind Xisno!Aeid Joi luelukedehl - Development Charge - Treatment capacity/source of supply - Storage - Distribution Transmission se!1!Iloel lejeueÂ© - eed s146!21 JeleM. . 4 . * O Ceo V,0 W U 0 0 C.4 J -C O 0 0 0(0 rt a) LO > 2, Z CO 0 CO 00 1 Connection Charge Costs I System Development Charge - Currently $184 - Black and Veatch Study 1993 eed s,46!21 JeleM. luelinf) - . I 26 O 0: 0 < C . CO .0 W U 0 CD z m CE CDO Q C 0 9 1 - a) le 73 0 L & 0 , 40 0 -0 8 0 C F3 a, 92[Â£ o .-. I--I' .- O 52 73 +U, 0 CW A 0 ' -m E LL O u, Ec, WI (D 4 2% 1- := 3 73 0 Af (0 0 LU 0 2 ~ Cr~ .- 01.1. C 40 6, 2 4-0 4, P co - 0 5 M U, (0 6, R - ZE E O 0 %1 40 41 a, ul .w r 0 6 0 9 0/,- 0 : 02 r- N 49 1- December 2007 Water . f. , 2 0 . 0 <ff:< U.1 U h. 61 LO 0, 0) co O 1 #Pe:I lejeues HDR STUDY RESULTS |Water System Development Charge Calculation Results | TreatmenUSource of Supply ,718 8Â£6'17$ 1V101 UOISS!UISUE]1 uolinq!.Ils 6mgd = 15,288 ERU 85ejo . '4 . f .7 ' 1 0 05 OO 9. 14 0* 1- .. 9 10 00 Z 000 9 0 9 L r. - 41 54 1 1 i1 5 3 1. V 0 Â¥ H 231 051 CURRENT AND PROPOSED CONNECTIO C ARGES (TAP FEES) RESIDENTIAL Existing Proposed 06Â£'0 LS ID,01 A#achment TOWN OF ESTES PARK Feb-08 water SDCs UN-ANT FEE> Â¥Vater Rights Fees .4' . Â£ O 02 0 4% < I. 1- M O 661 U U, 0.. 0,0 08 M A 0.61 0. Ui ~ 8 1 Co 49 U.1 1 0 0 0 8.0 O L.1- . <41 0 96 0 g 2:@B35 PROPOSED CONNECTION CHARGES (TAP FEES) $1,840 $2,873 $3,907 $4,940 off/9 $ 05â‚¬9$ 0 SF'9$ 00*'9$ seed 06Â£'0 1 $ ZSE'6$ ECE'8$ OrE'Z$ ID+01 hment C TOWN OF 'ESIDENTIAL Existing . O 0 M ?17 SUM CML Utility Charges and Practices in Colorado 2007 Edition > 7 000 customers 91 municipalities participated ' Of Municipalities larger than 7,000 customers: 000'OLS < seei del GABLI %68 - 01 u! elnpellos eei del es!.Ae] 01 ueld %89 - 8003 pue eeJOU! seel de-1- 86eleAV :9001 - 266 L. ... 0 4Â¥ . J M O U 926 '17Â£Â£$ :ls00 uo!10nijSUOO ell.loq ue! Pel/\1 . OOVd 531 3 Local Construction Costs for Single Fa ly Residences 2007 Needs ssessment Survey ~ Avg. home construction cost: $330,010 JO %L> eseeiou! 00 L 'Â£$ Pesodold . el.UO4 Allulel eiSu!s e JO jsoo efie]GAe .*4 CC â‚¬< V, 11'U 5 y C 0 0 Z Ill 00Â¥H0101 RECOMMENDATIONS ~Increase Connection Charge fro m Xq eal del e]!lue eseeJOU! Alienuuvi ZOOZ) Xepul Jsoc) uo $1,840 to $4,940 Â£ :eseefoul ../ 0 0 05,11, 1 0 0 *Â§:,08 /-6 -- ./ 0 41 E <EE o 01 U) Ze U)> - 2 E N g' #53 C CO E 2*i - â€ž- 0 Ef*-E 000 2, g Â§ N NE. 0 4 9252 06 5 0 + - %3#9 48* 90 9 1 14 2 60* 0 c R =03 51 M I *Lu 2 16 8 2 1.1 -9 g' 15 02 ..e 2 0Â£08 .- M .5 2.5 0 g <;6~ 4 29 0 VI O.E E .-I 22 2% 2 @- 2 ZE OCN 0 35 1 85 - 1-Ul 2 $ 39 1- S S f ~4 (0 g = rE m.2 1 % a E 2 0 9 6 2 01-- JOEL .- 0 ro R 8-3& 20 2 11 TE . 2= <6 26 0 1- SU 0 g U t' a -St/@ 2 U , Â£ 31 1 8 6 0 a el 0 - 2 Ru 51 E :3 -0 Â£ 810 i 8 1 2% E c E O . ; = E a>S =E= â‚¬*EK,g 2.8 6 9- - 61 m Y r- .#100 0. 6 62 Â£ o = OSO fill Dumping isposal of 100 T of Wood Waste Chipping & Landfill Direct Landfill Hauling Disposal $5 11 pinggsÂ£: 0Lani~3 (12 loads) (25 loads) $2,940 (Note 4) $3,000 000'8$ Lâ‚¬6'9$ isoo iesodsta le 301 pe===1====Z! ~~Q~ 4 6u d 4 UMold e s! esS 'e|qelie/,e Ogle eJe Slawnq 40Uan pue SlepOUJ lalleluS pue 196181 'xoqeju pelle/,~ Alope#eJ puno,6 @Aoqe ez!9 Uln!paul e S! O3Z-S alu Uto)Â·slau.Inqi je'MMAA - WO)-SJOUJnq ileÂ©lzEC -OZZ-ELL XVJ - EOEL-OZZ-ZZL auo4d LOOZ ISADAV 'AD,8 Cost of Machine $201,370 066+9 13 3 06ED s>lon,192 Xle lulu! 1 11"A 11!tpuel 01 8#SEM pOOM 60!Jeep plle, JO Bu!inell pe.1!0 9 Dll 'SUN Rental Cost per Month $8,500 q 40 1 Aq p ineq '4 e jo sum Â£ s! lenpiseJ Jet.Uns U!.EUnO J!Â¥ '9 eM 'aldl~exe s!4~ ul *uoilonpa, elunioA lueo!'!u6!s epIAoid olu! 1! ap ele sd!40 Ad suoo p les@!0 'dHOOD 'x c !1pue d!40 pue 4;UoIN Jed ;soo Buloueu!=I-esee-I Fuel Cost (S-220: 13 hrs; Chipper: 6 hrs) enance and Re luo:'Stal,Unq-1!8'MAVA :SalON