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HomeMy WebLinkAbout1989-11-21 Support Documentation Town Council Regular SessionVAIL TOWN COUNCIL REGULAR MEETING TUESDAY, NOVEMBER 21, 1989 7:30 p.m. AGENDA 1. Resolution No. 62, Series of 1989, a resolution recognizing and congratulating Red Sandstone Elementary School for winning the 1989 State Champion physical fitness award. 2. Recognition of Outgoing Councilmembers Affeldt, Slevin, and Wahrlich- Lowenthal 3. Ordinance No. 29, Series of 1989, second reading, an ordinance authorizing the issuance of Town of Vail, Colorado sales tax revenue bonds, Series 1989 and the construction, improvement and acquisition of a public parking facility and other appurtenances incidental thereto; providing the form, terms and conditions of the bonds, the manner and terms of issuance, the manner of execution, the method of payment and the security therefor; pledging a portion of the sales tax proceeds of the Town and the net revenues derived from the parking facility for the payment of said bonds; providing certain covenants and other details and making other provisions concerning the bonds and the designated sales tax revenues and net revenues; ratifying action previously taken and appertaining thereto; and repealing all ordinances in conflict herewith. 4. Ordinance No. 30, Series of 1989, second reading, an ordinance establishing a program of investments to provide for the payment of the Town's outstanding general obligation refunding bonds, series 1985, on December 1, 1995 and in connection therewith providing for periodic investments of moneys to provide for such payment; providing other details in connection therewith; and repealing all ordinances in conflict herewith. 5. Consent Agenda A. Ordinance No. 24, Series of 1989, second reading, an ordinance amending Section 8 of Ordinance No. 14 Series of 1987 to provide for the amendment of density of the approved development plan for Special Development District No. 6. B. Ordinance No. 25, Series of 1989, second reading, an ordinance amending Title 17 to add Chapter 17.25 dealing with single family subdivisions; amending Section 17.08.210 to provide a definition for single family subdivisions; and setting forth details in regard thereto. C. Ordinance No. 26, Series of 1989, second reading, an ordinance amending Section 18.24.020 of the Municipal Code of the Town of Vail by adding "Commercial Ski Storage" as a permitted use in basement or garden levels within structures in the Commercial Core I Zone District. D. Ordinance No. 27, Series of 1989, second reading, an ordinance amending Chapter 2.20 Local Licensing Authority of the Municipal Code of the Town of Vail, Colorado to add an application fee for temporary liquor license under the Colorado Liquor Code; and setting forth details in regard thereto. E. Ordinance No. 28, Series of 1989, second reading, an ordinance amending certain sections of Chapter 16.22 so that Chapter 16.22 regulates signs in the Arterial Business District Zone District of the Town of Vail (ABD) as well as the Commercial Core III Zone District (CC3). 6. Sign Variance Request for the Finishing Touch Furniture Showroom located in the Inn at Vail (Applicant: Jim Wilson) CITIZEN PARTICIPATION Adjournment A ,, VAIL TOWN COUNCIL REGULAR MEETING TUESDAY, NOVEMBER 21, 1989 7:30 p.m. EXPANDED AGENDA 7:30 1. Resolution No. 62, Series of 1989, recognizing and congratulating Red Sandstone Elementary School for winning the 1989 State Champion Physical Fitness award Action Requested of Council: Approve/deny/modify Resolution No. 62, Series of 1989. Staff Recommendation: Approve Resolution No. 62, Series of 1989. 7:40 2. Recognition of Outgoing Councilmembers Affeldt, Slevin, and Wahrlich-Lowenthal 7:45 3. Ordinance No. 29, Series of 1989, second reading, sales tax Charlie Wick revenue bonds for the Village Parking Structure expansion Steve Barwick and renovation. Steve Jeffers Dee Wisor Action Requested of Council: Approve/deny/modify Ordinance No. 29, Series of 1989, on second reading. Background Rationale: Second reading of the bond ordinance per previous discussion with the Council. Staff Recommendation: Approve Ordinance No. 29, Series of 1989, on second reading. 8:00 4. Ordinance No. 30, Series of 1989, second reading, Charlie Wick establishing a program of investments to provide for the Steve Barwick payment of the Town's outstanding bonds revenue bonds for Steve Jeffers the Village Parking Structure expansion and renovation Dee Wisor Action Requested of Council: Approve/deny/modify Ordinance No. 30, Series of 1989, on second reading. Background Rationale: Second reading of 'the ordinance establishing a program of investments per previous discussion with the Council. Staff Recommendation: Approve Ordinance No. 30, Series of 1989, on second reading. 8:15 5. Consent Agenda Peter Patten A. Ordinance No. 24, Series of 1989, second reading, amending SDD No. 6 converting Condominium Unit #30 from commercial to residential Action Requested of Council: Approve/deny/modify Ordinance No. 24, Series of 1989, on second reading. Background Rationale: The applicant tabled this request on October 17. The proposal has been revised as per the enclosed memo dated 11/2/89. Staff has completed additional research as found in the same memo. Staff Recommendation: Approve Ordinance No. 24, Series of 1989, on second reading. „ a Kristan Pritz Kristan Pritz Pam Brandmeyer Kristan Pritz B. Ordinance No. 25, Series of 1989, second reading, amending Title 17 to provide a definition for single family subdivisions Action Requested of Council: Approve/deny/modify Ordinance No. 25, Series of 1989, on second reading. Background Rationale: The PEC, at their September 26, 1989 public hearing, unanimously recommended approval of the proposed amendment to the zoning code. Staff Recommendation: Approve Ordinance No. 25, Series of 1989, on second reading. C. Ordinance No. 26, Series of 1989, second reading, amending Section 18.24.020 by adding "Commercial Ski Storage." D E. Action Requested of Council: Approve/deny/modify Ordinance No. 26, Series of 1989, on second reading. Background Rationale: The PEC, at their September 26, 1989 public hearing, unanimously recommended approval of the proposed amendment to the zoning code. Staff Recommendation: Approve Ordinance No. 26, Series of 1989, on second reading. Ordinance No. 27, Series of 1989, second reading, amending Chapter 2.20 by adding an application fee for temporary liquor licenses Action Requested of Council: Approve/deny/modify Ordinance No. 27, Series of 1989, on second reading. Background Rationale: In the last legislative session, Senate Bill No. 113 was approved allowing an application fee for temporary liquor licenses. This is to be used specifically for expired liquor licenses, and allows that a temporary permit be issued for a $250.00 fee, for a 90 day period of time, once a COMPLETE new application packet has been submitted to the Local Licensing Authority. Staff Recommendation: Approve Ordinance No. 27, Series of 1989, on second reading. This will dispense with the "inconvenience" a licensee causes himself/herself should he/she not renew a liquor license in a timely manner. Ordinance No. 28, Series of 1989, second reading, amending Chapter 16.22 regulating signs in the ABD and CC3 zone district Action Requested of Council: Approve/deny/modify Ordinance No. 28, Series of 1989, on second reading. Background Rationale: The PEC, at their September 26, 1989 public hearing, unanimously recommended approval of the proposed amendment to the zoning code. Staff Recommendation: Approve Ordinance No. 28, Series of 1989, on second reading. 8:25 6. Sign Variance Request for the Finishing Touch Furniture Peter Patten Showroom located in the Inn at Vail (Applicant: Jim Wilson) Action Requested of Council: Approve/deny the requested sign variance. Background Rationale: On October 18, 1989, the DRB, by a vote of 4-1, recommended denial of the sign variance. The -2- 9' DRB made findings consistent with Sections III A, 6, C, and D of the staff memorandum. Staff Recommendation: Staff recommends denial of the proposed variance. 9:10 CITIZEN PARTICIPATION g:20 7. Adjournment -3- A RESOLUTION RECOGNIZING AND CONGRATULATING RED SANDSTONE ELEMENTARY SCHOOL FOR WINNING THE 1989 STATE CHAMPION PHYSICAL FITNESS AWARD. WHEREAS, the President's Council on Physical Fitness and Sports has held competitions to determine the schools where the most physically fit students attend; and WHEREAS, Red Sandstone Elementary School participated in the competition for enrollment category Ii, schools with 101 - 500 student enrollment; and WHEREAS, State Champion Awards are based on school performance for the 1988-89 school year; and GJHEREAS, to qualify for the Presidential Award, students must score at or above the 85th percentile on all test items of the President's Challenge, a national fitness test which measures heart/lung endurance, muscular strength and endurance, speed and agility; and WHEREAS, Red Sandstone Elementary School in Vail, Colorado has won the 1989 State Champion Physical Fitness Award in category II from the President's Counc it on Physical Fitness in Sports. NOW, THEREFORE, BE IT RESOLVED THAT THE VAIL TOWN COUNCIL that the students of Red .Sandstone Elementary School along with former Principal Beverly Voight, current Principal Ann Sanders, and Physical Education teacher Firooz Zadeh are hereby highly commended and congratulated for their efforts and high physical fitness in becoming a 1989 State Champion in Physical Fitness as awarded by the President's Council on Physical Fitness in Sports. INTRODUCED, READ, APPROVED AND ADOPTED this day of 1989. Kent R. Rose, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk t, r r RkC~~~ NOV 1 51989 SUITE 700, STANFORD PLACE 3 4382 SOUTH ULSTER STREET DE\'VER, COLORADO 80237 TELEPHONE: 303 779-9484 TELECOPIER: 303 779-8480 IN DOWNTOWN DENVER Sherman & Howard 3000 PIRST 4TERSTATE TOWER NORTH 933 SEVE.NTEED71'R STFEET DENVER, COLORADO 80202 TE LEPRONE 30.7 2972900 TELECOPIER 303 29909.10 D7 COLORADO SPRLYOS Sherman & Howard SUITE 300. ALAMO CORPORATE CENTER 102 SOUTH SEJON COLORADO SPRLNOS. COLORADO 80903 TELEPHONE 719 47,-2440 TELECOPIER 719 933.4379 DEE P. WISOR 1`lovember 13, 1989 Mr. Steve Jeffers Mr. Roger Dalen Kirchner 1Vloore & Co., Inc. 717 Seventeenth Street Suite 2500 Denver, Colorado 80202 Mr. Ron Phillips NIr. Charles Wick Mr. Steve Barwick Town of Vail 75 So. Frontage Road West Vail, Colorado 81657 Dear Friends: Town of Vail, Colorado Proposed Sales Tax Revenue Bonds IN RENO. YEVADA Hill Caesae delipkau and Erwin, P.G POST OFFICE BOX 2790 RENO. NEVADA 89,05 TELEPHONE 702 323-1901 SELECOPIER 702 348.7250 You have indicated that the Town of Vail (the "Town") proposes to issue sales tax revenue bonds additionally secured by parking revenues (the "1989 Bonds") in the approximate principal amount of $8,000,000 in order to finance construction of additional parking. The 1989 Bonds will be issued as capital appreciation bonds or zero coupon bonds where interest is not payable on an annual basis but rather is compounded. You are also proposing that in future years the Town use moneys from its sales tax revenues and other moneys (excluding ad valorem taxes) and invest such moneys in a guaranteed investment contract. Depending upon requirements of the bond insurer, such investments may or may not be pledged to the payment of the Town's outstanding General Obligation Refunding Bonds, Series 1985 (the "1985 Bonds"). In any event, it is possible that the Town may use such moneys to pay all or a portion of the debt service of the 1985 Bonds. ,~ _l Sherman & Howard. November 13, 1989 Page 2 We assume that the rate on the guaranteed investment contract will be equal to or less than the yield on the 1985 Bonds. However, the investment of the proceeds of the sales tax and other moneys received by the Town after the issuance of the 1989 Bonds may pose a question under the rebate regulations published by the Internal Revenue Service in the Federal Register on May 15, 1989 (the "1989 Regulations") which implement the rebate provisions of Section 148 of the Internal Revenue Code of 1986 (the "Code"). The Code and the 1989 Regulations basically require an amount equal to the sum of (a) the excess of the aggregate amount earned on all investments (other than investments attributable to an excess described in this clause) over the amount that would have been earned if all investments were invested at a rate equal to the yield on the 1989 Bonds, and (b) any income earned on the excess described in (a) to be rebated to the United States Treasury in order for the interest on bonds to be excluded from gross income for federal income tax purposes. The term proceeds is defined very broadly in the 1989 Regulations to encompass not only proceeds received from the sale of a bond issue, but also investment proceeds, proceeds that are deemed to transfer from one bond issue to another, recoveries of overpayment of rebate and discount proceeds. The term discount proceeds has not been defined in the 1989 Regulations, but the preamble to the 1989 Regulations indicates that discount proceeds generally arise if the amount of outstanding bonds increases during the term of the issue because the bonds do not pay interest currently, e.g., capital appreciation or zero coupon bonds. While discount proceeds are not defined in the 1989 Regulations, it is possible that proceeds of the sales tax or other moneys which are freed up for investment as a result of the issuance of capital appreciation bonds will be defined in future rebate regulations to be promulgated by the Internal Revenue Service so as to subject such proceeds to the rebate requirement. Obviously, we do not know when regulations on discount proceeds may be promulgated nor do we know with certainty the nature of such regulations. However, the preamble to the 1989 Regulations does place the municipal finance community on notice that discount proceeds will be the subject of future regulations. We also cannot determine with certainty what the effective date of any future regulations will be. However, the 1989 Regulations, published May 15, 1989 were generally effective for certain governmental bonds issued after August 31, 1986. The ordinance which would authorize the issuance of the 1989 Bonds would contain a covenant by the Town to comply with applicable tax laws in order to maintain the exclusion of the interest on the 1989 Bonds from gross income, for federal income tax purposes. Compliance with such a covenant would be a basis for us to render an opinion as to the tax-exempt character of the interest. If the Town implements the structure you propose, the worst outcome is that the Internal Revenue Service promulgates discount proceeds regulations which apply to the 1989 Bonds and which would require the Town to rebate u ~ ,. ~ Sh an & I-iaw~a°~! November 13, 1989 Page 3 amounts attributable to the discount proceeds to the federal government. Kirchner Moore has estimated that the maximum amount of such exposure is approximately $70,000. As we also discussed, if the sales tax proceeds are defined in future regulations to be discount proceeds attributable to the 1989 Bonds, current federal tax regulations provide that when proceeds of 1989 Bonds are used to pay principal or interest on other obligations the proceeds from such obligations become proceeds of the 1989 Bonds. Thus, the use of the proceeds to pay the debt service on the 1985 Bonds would cause any of the 1985 Bond proceeds to become proceeds of the 1989 Bonds and to be subject to the 1989 Bond yield instead of the 1985 Bond yield. The escrow that was established in conjunction with the 1985 Bond issue will be in existence through 1997. Thus, if the discount proceeds are used to pay debt service on the 1985 Bonds in 1995, moneys held in the escrow will be deemed to be proceeds of the 1989 Bonds and subject to the 1989 Bond yield. If the 1989 Bond yield is lower than the yield at which the escrow was invested, it will be necessary to find other proceeds of the 1989 Bonds (such as the Bond Fund) to invest at a lower yield in order to address this problem. The amount of the transferred proceeds penalty has been estimated by Kirchner Moore to be approximately $3,000. If you need additional information or have questions on any of the material in this letter, do not hesitate to call. VVe look forward to the opportunity to work with you on this transaction. Sincere Dee P. Wisor DPW:je :9 ~ .. X STATE OF COLORADO ) COUNTY OF EAGLE ) SS. TOWN OF VAIL ) The Town Council of the Town of Vail, Colorado, met in regular session, in full conformity with the Town Charter and the applicable laws, rules and regulations of the Town, at the Vail Municipal Building, Vail, Colorado, the regular meeting place thereof, on Tuesday, the 7th day of November, 1989, at the hour of 7:30 p.m. The following were found to be present, constituting a quorum: Mayor: Mayor Pro Tem: Councilmembers: Absent: There also were present: Town Manager: Director of Adminis- trative Services: Kent R. Rose John C. Slevin Eric Affeldt Michael Cacioppo Merv Lapin Thomas Steinberg Gail Wahrlich-Lowenthal None Rondall V. Phillips Charles Wick Town Clerk: Pam Brandmeyer Thereupon, the following proceedings, among others, were had and taken. The presiding officer introduced the following Ordinance, which was then read by title, sufficient copies of the full Ordinance having previously been made available to the Town Council and to the public: -1- .~! ORDINANCE NO. 29 SERIES OF 1989 AN ORDINANCE AUTHORIZING THE ISSUANCE OF TOWN OF VAIL, COLORADO SALES TAX REVENUE BONDS, SERIES 1989 AND THE CONSTRUCTION, IMPROVEMENT AND ACQUISITION OF A PUBLIC PARKING FACILITY AND OTHER APPURTENANCES INCIDENTAL THERETO; PROVIDING THE FORM, TERMS AND CONDITIONS OF THE BONDS, THE MANNER AND TERMS OF ISSUANCE, THE MANNER OF EXECUTION, THE METHOD OF PAYMENT AND THE SECURITY THEREFOR; PLEDGING A PORTION OF THE SALES TAX PROCEEDS OF THE TOWN AND THE NET REVENUES DERIVED FROM THE PARKING FACILITY FOR THE PAYMENT OF SAID BONDS; PROVIDING CERTAIN COVENANTS AND OTHER DETAILS AND MAKING OTHER PROVISIONS CONCERNING THE BONDS AND THE DESIGNATED SALES TAX REVENUES AND NET REVENUES; RATIFYING ACTION PREVIOUSLY TAKEN AND APPERTAINING THERETO; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Definitions. Terms used in this Ordinance shall have the meanings specified in this section for all purposes of this Ordinance and of any ordinance amendatory hereof or supplemental hereto, or relating hereto, and of any instrument or document appertaining hereto, except where the context by clear implication herein otherwise requires. All definitions include the singular and plural and include all genders. "Additional Bonds" means the one or more series of bonds or other securities or obligations authorized to be issued by the Town pursuant to Section 17 hereof and having a lien on the Pledged Revenues on a parity with the lien of the 1989 Bonds. "Appreciated Principal Amount" means: (i) on each June 1 and December 1 semiannual compounding date, the appreciated principal amount of the 1989 Bonds as shown in the Table of Appreciated Principal Amounts as set forth in Exhibit B attached hereto and -2- (ii) on any other date, an amount equal to the sum of the appreciated principal amount of the 1989 Bonds as of the semiannual compounding date immediately preceding such date plus the amount as determined by the formula: I = (A-B)(X/6); where "1" is the accrued interest on the 1989 Bonds to such date, "A" is the appreciated principal amount as of the semiannual compounding date immediately succeeding such date, "B" is the appreciated principal amount as of the semiannual compounding date immediately preceding such date and "X" is the number of months such date follows the semiannual compounding date immediately preceding. "Bond Fund" means the fund created by Section 14.B. hereof. "Bond Insurer" means "Bond Insurance Policv" means the municipal bond insurance policy issued by the Bond Insurer guaranteeing the payment of principal and interest on the 1989 Bonds. "Bond Reserve Insurance Policv" means any insurance policy, surety bond, irrevocable letter of credit or similar instrument deposited in or credited to the Reserve Fund in lieu of or in partial substitution for moneys on deposit therein. The issuer providing any such Bond Reserve Insurance Policy shall be an issuer which has been then currently assigned an AAA rating or a comparable rating by Moody's Investors Service, Inc., Standard & Poor's Corporation or their successors. "Bonds" means the 1989 Bonds and any Outstanding Additional Bonds. "Charter" means the Home Rule Charter of the Town, including all amendments thereto prior to the date hereof. "Commercial Bank" means any depository for public funds permitted by the laws of the State for political subdivisions of the State which has a capital and surplus of $10,000,000 or more, and which is located within the United States. "Construction Fund" means the fund created by Section 13 hereof. "Escrow Account" means the Escrow Account established pursuant to the Escrow Agreement with the Escrow Bank. "Escrow Agreement" means the Escrow Agreement between the Town and the Escrow Bank dated as of December 1, 1989. "Escrow Bank" means Central Bank Denver, National Association. -3- "Fiscal Year" means the twelve months commencing on the first day of January of any calendar year and ending on the thirty-first day of December of such calendar year or such other twelve month period as may from time to time be designated by the Town Council as the Fiscal Year of the Town. "General Operating_Expenses" means all reasonable current expenses, paid or accrued, of operating, maintaining and repairing the Parking Facilities. The term includes, without limitation, legal and incidental expenses of the various administrative departments of the Town directly or indirectly related and reasonable allocable to the administration of the Parking Facilities, insurance premiums, the reasonable charges of any paying agent, trustee or depository bank, contractual services, professional services required by this Ordinance, salaries and administrative expenses, labor, and the costs incurred by the Town in the collection of Gross Revenues. The term does not include any allowance for depreciation, any costs of reconstruction, improvement, extension or betterment, any accumulation of reserves for capital replacements, any reserves for operation, maintenance or repair of the Parking Facilities, any allowance for the redemption of any bond or other security evidencing a loan or the payment of any interest thereon, and any legal liability not based on contract. "Governmental Obligations" means any of the following which are noncallable and which at the time of iTivestment are legal investments under the laws of the State for the moneys proposed to be invested therein: (a) Direct general obligations of, or obligations the payment of principal of and interest on which are unconditionally guaranteed by, the United States of America; (b) Bonds, debentures, notes or other evidences of indebtedness issued or guaranteed by any of the following: Bank for Cooperatives; Federal Intermediate Credit Banks; Federal Home Loan Banks; Federal Farm Credit Banks; Export-Import Bank of the United States; Federal Land Banks; Government National Mortgage Association; Federal Financing Bank; or Small Business Administration; or any other agency or instrumentality of the United States of America (created by an Act of Congress) substantially similar to the -4- foregoing in its legal relationship to the United States of America, provided that, at the time of purchase, such obligations are rated in the highest rating category of Standard & Poor's Corporation or its successors; or (c) Evidences of ownership interests in obligations described in paragraph (a) or (b) above. "Gross Revenues" means all income and revenues derived directly or indirectly from the operation of or otherwise relating to the Parking Facilities, including, without limitation, any fee, rate or other charge assessed against any persons for the privilege of using or otherwise relating to the Parking Facilities. "Income Fund" means the special fund by that name created by Section 14.A. hereof. "Maximum Annual Debt Service Requirement" means the maximum amount of all required payments of principal and interest on the Bonds which will become due in anv Fiscal Year. "Net Revenues" means the Gross Revenues less General Operating Expenses. "1989 Bonds" means the Sales Tax Revenue Bonds, Series 1989, in the aggregate principal amount of $8,239,235. "Ordinance" means this Ordinance of the Town, which provides for the issuance and delivery of the 1989 Bonds. "Outstandine" means, as of any date of calculation, all Bonds theretofore executed, issued and delivered by the Town except: (1) Bonds theretofore cancelled by the Town, Registrar or Paying Agent, or surrendered to the Town, Registrar or Paying Agent for cancellation; (2) Bonds in lieu of or in substitution for which other Bonds shall have been executed, issued and delivered by the Town and authenticated by the Registrar unless proof satisfactory to the Registrar is presented that any such Bonds are duly held by the lawful registered owners thereof;. or -S- (3) Bonds deemed to have been paid as provided in Section 20 hereof. "Owner" or "registered owner" shall mean the registered owner of any 1989 Bond as shown on the registration books kept by the Registrar. "Parking Facilities" means all existing parking facilities, all parking facilities to be constructed, otherwise acquired and equipped with the proceeds of the 1989 Bonds and all future parking facilities operated by the Town, which facilities include all improvements, extensions, enlargements, additions or betterments to, or replacements of. "Paying Agent" means Central Bank Denver, National Association, Denver, Colorado, being the agent for the Town for the payment of the 1989 Bonds and interest thereon, or its successors and assigns. "Person" means any individual, firm, partnership, corporation, company, association, joint-stock association or body politic; and the term includes any trustee, receiver, assignee or other similar representative thereof. "Pledged Revenues" means: (i) the revenues derived from the Pledged Sales Tax; (ii) any additional taxes (other than a general ad valorem tax), funds or revenues which the Town hereafter pledges to the payment of Bonds; (iii) the Net .Revenues; (iv) proceeds of the Bonds or other legally available moneys deposited into and held in the Bond Fund and the Reserve Fund; and (v) interest or investment income on the Income Fund, the Bond Fund and the Reserve Fund; all to the extent that such moneys are at any time required by Section 14 hereof to be deposited into and held in the Income Fund, and the Bond Fund and the Reserve Fund. "Pledged Sales Tax" means that one-half of the proceeds of the Sales Tax which is also pledged to the payment of the Series 1985 Bonds. "Pledged Sales Tax" does not include incremental sales taxes which are or may be pledged to the payment of the bonds pursuant to an urban renewal plan as defined in 31-25-103(a), C.R.S or a plan of development as defined -b- in 31-25-802 (6.4) C.R.S. "Pledged Sales Tax" does not include amounts withheld by retailers and vendors to cover their expenses in collecting and remitting the Pledged Sales Tax, and Pledged Sales Tax does not include amounts collected by the Town and subsequently determined, pursuant to the applicable Sales Tax Ordinances, to be subject to valid claims for refunds. "Pledged Sales Tax" does not include the proceeds of any increase in the Sales Tax which may be approved in the future, unless such increase is expressly pledged by the Town. "Pledged Sales Tax" does include one-half of the proceeds derived by the Town from any legally available tax or taxes or fees (other than a general ad valorem tax) which replace or supersede the Pledged Sales Tax, regardless of whether such tax or taxes or fees are imposed by the Town or the State or other political subdivision thereof. "Preliminary Official Statement" means the Preliminary Official Statement dated 1989. "Purchase Contract" means the Purchase Contract between the Town and the Purchaser dated 1989. "Purchaser" means Kirchner, Moore & Company. "Rebate Fund" means the fund created by Section 14.F. hereof. "Registrar" means Central Bank Denver, National Association, Denver, Colorado, being the agent for the Town for the registration, transfer and exchange of the 1989 Bonds, or its successors. "Registrar Agreement" means the Registrar Agreement between the Town and the Registrar dated as of December 1, 1989. "Reserve Fund" means the fund created by Section 14.C. hereof. "Sales Tax" means the tax upon the sale and use of goods and services which is currently being levied by the Town pursuant to the Sales Tax Ordinances and any future or amended tax levied by the Town as a sales and use tax. - "Sales Tax Ordinances" means the ordinances adopted by the Town Council of the Town for the purpose of adopting and enforcing the Sales Tax and which are in effect on the date of this Ordinance and as later amended or supplemented. -7- "Series 1984 Warrants" means the Town's outstanding Refunding Land Transfer Tax Anticipation Warrants, Series 1984, dated A~Iay 15, 1984. "Series 1985 Bonds" means the Town's outstanding General Obligation Refunding Bonds, Series 1985, dated as of 1\lovember 15, 1985. "Series 1985 Ordinance" means Ordinance IVo. 23, Series of 1985, as amended by Ordinance IVo. 29, Series of 1985. "State" means the State of Colorado. "Tax Code" means the Internal Revenue Code of 1986, as amended. "Town" means the Town of Vail, Colorado. "Town Council" means the Town Council of the Town or any successor in functions thereto. "Trust Bank" means a Commercial Bank which is authorized to exercise and is exercising trust powers. Section 2. Recitals. A. The Town is a municipal corporation duly organized and existing under the Town's Charter adopted pursuant to Article XX of the Constitution of the State of Colorado. B. Section 10.6 of the Charter permits the Town to issue securities made payable solely out of the proceeds of any sales taxes, or from any portion thereof, or solely from net revenues derived from the operation of an income-producing project or any combination, of sales taxes and net revenues without an election. C. The Town imposes a Sales Tax pursuant to Section 11.1 of the Charter and the Sales Tax Ordinances. D. The Town has pledged one-half of the revenues from the Sales Tax to the payment of the Series 1985 Bonds and, on a subordinate basis, to the Series 1984 Warrants. E. The Town has legally available funds which when combined with the Reserve Fund for the Series 1984 Warrants will be sufficient when invested to pay the principal of and interest on the Series 1984 Warrants as the same become due on and after December -8- „ ~ 1, 1989 and on or before December 1, 1994, the prior redemption date of the Series 1984 Warrants. F. Pursuant to the Series 1985 Ordinance, the Town issued the Series 1985 Bonds and agreed to pledge and set aside the Pledged Sales Tax to pay the principal of and interest on the Series 1985 Bonds, provided that the Pledged Sales Tax could also be pledged and used for the payment of the principal of and interest on other additional general obligation bonds of the Town which may be issued thereafter on a parity with or subordinate to the Series 1985 Bonds with respect to the Pledged Sales Tax. The Series 1985 Ordinance also provided that, to the extent that the principal of and interest on the Series 1985 Bonds and any additional parity general obligation bonds are fully provided for in any Fiscal Year by tax revenues and other moneys legally available therefore, the Town is authorized to use such excess Pledged Sales Tax for other purposes, including, but not limited to, payment of special non-general obligation bonds of the Town which may not be issued on a parity with the Series 1985 Bonds, but only may be issued in a subordinate and inferior position to the claim of the Series 1985 Bonds to the Pledged Sales Tax. G. The Town Council has determined that by depositing existing funds on hand together with the reserve fund for the Series 1984 Warrants with the Escrow Bank and investing such funds in Governmental Obligations, the Town can provide for the payment of the principal of and interest on the Series 1984 Warrants and can eliminate the lien of the Series 1984 Warrants on the Pledged Sales Tax thus making it possible to issue at favorable rates the 1989 Bonds for the purposes herein contemplated. H. Except for the Series 1985 Bonds and bonds or obligations which have been paid or defeased as of the date of issuance of the 1989 Bonds, the Town has never pledged the Pledged Sales Tax to the payment of any bonds or for any purpose with the result that the Pledged Sales Tax may now be pledged (with a lien which is subordinate to the lien for the Series 1985 Bonds) lawfully and irrevocably for the payment of the 1989 Bonds. I. The Town has never pledged the Net Revenues derived from the Parking Facilities with the result that the Net Revenues may now be pledged lawfully and irrevocably for the payment of the 1989 Bonds. -9- J. The Town has received a proposal from the Purchaser for the purchase of the 1989 Bonds for the purpose of defraying in whole or in part the costs of the Parking Facilities. K. There have been presented to the Council the proposed forms of the following documents: the Purchase Contract; the Registrar Agreement; the Escrow Agreement; and the Preliminary Official Statement. L. The Town Council is desirous of causing the 1989 Bonds to be issued, of authorizing and directing the application of the proceeds thereof as set forth herein, and of providing security for the payment thereof, all in the manner hereinafter set forth. Section 3. Ratification. All actions heretofore taken (not inconsistent with the provisions of this Ordinance) by the Town Council and other officers of the Town in the imposition and collection of the Sales Tax or the Gross Revenues, in providing the Parking Facilities, in selling and issuing the 1989 Bonds for those purposes and in providing for the payment of the Series 1984 Warrants hereby are, ratified, approved and confirmed. Section 4. Authorization of Parking Facilities and Defeasance of Series 1984 Warrants. The Parking Facilities are hereby authorized at a cost of not exceeding $8,239,235 (excluding costs to be paid from sources other than the original proceeds of the 1989 Bonds). The establishment of the Escrow Account with the Escrow Bank and the deposit of moneys of the Town, together with the reserve fund for the Series 1984 Warrants, therein for the purpose of providing for the payment in full of the principal of and interest on the Series 1984 Warrants is hereby authorized. Section 5. Authorization of the 1989 Bonds. There are hereby authorized to be issued fully registered sales tax revenue securities of the Town, to be designated "Town of Vail, Colorado, Sales Tax Revenue Bonds, Series 1989" in the aggregate principal amounts of $8,239,235, to be payable and collectible, both as to principal and interest, from the Pledged Revenues. Section 6. 1989 Bond Details. The 1989 Bonds shall be issued in fully registered form (i.e., registered as to both principal and interest), shall be dated the date of the original delivery of the 1989 Bonds, shall be issued in the denomination of $5,000 value at maturity or -10- any integral multiple thereof (provided that no 1989 Bond may be in a denomination which exceeds the Appreciated Principal Amount coming due on any maturity date, and no individual 1989 Bond will be issued for more than one maturity) and shall be numbered in such manner as the Registrar may determine. The 1989 Bonds shall bear interest from their date compounded on each interest payment date and payable only upon maturity. The Series 1989 Bonds shall mature and become payable on December 1 in each of the designated years and in the respective aggregate Appreciated Principal Amount and shall bear interest compounded semiannually as follows: Original Principal Aggregate Appreciated Maturity Amount Per $5,000 Interest Principal Amount At Date Value at Maturity Rate Maturity The Appreciated Principal Amount of any 1989 Bond shall be payable to the registered owner thereof as shown on the registration records kept by the Registrar, upon maturity thereof and upon presentation and surrender at the Paying Agent. If any 1989 Bond shall not be paid upon such presentation and surrender at or after maturity, it shall continue to draw interest at the same interest rate borne by said 1989 Bond until the principal thereof is paid in full. All such payments shall be made in lawful money of the United States of America without deduction for the services of the Paying Agent or Registrar. Section 7. Prior Redemption. The 1989 Bonds shall not be subject to redemption prior to their respective maturities. Section 8. ~ecial Obligations. All of the 1989 Bonds, together with the interest accruing thereon, shall be payable and collectible out of the Pledged Revenues, which are hereby irrevocably so pledged; the owner or owners thereof may not look to any general or other fund for the payment of principal and interest on the 1989 Bonds, except the designated special funds pledged therefor; and the 1989 Bonds shall not constitute an indebtedness nor a debt within the meaning of any applicable charter, constitutional or statutory provision or -11- limitation; nor shall they be considered or held to be general obligations of the Town; and each of the 1989 Bonds herein authorized to be issued shall recite on its face that it is payable and collectible from the Pledged Revenues, and that the owners thereof may not look to any general or other fund for the payment of the Appreciated Principal Amount on the 1989 Bonds. Section 9. Negotiability. Subject to the registration provisions hereof, the 1989 Bonds shall be fully negotiable and shall have all the qualities of negotiable paper, and the owner or owners thereof shall possess all rights enjoyed by the holders or owners of negotiable instruments under the provisions of the Uniform Commercial Code-Investments Securities. The Appreciated Principal Amount of and interest on the 1989 Bonds shall be paid, and the 1989 Bonds shall be transferable, free from and without regard to any equities between the Town and the original or any intermediate owner of any 1989 Bonds or any setoffs or crossclaims. Section 10. Execution. The 1989 Bonds shall be executed in the name and on behalf of the Town by the signature of the Mayor, shall be sealed with a manual or facsimile impression of the seal of the Town and attested by the signature of the Town Clerk. Each 1989 Bond shall be authenticated by the manual signature of an authorized officer or employee of the Registrar as hereinafter provided. The signatures of the Mayor and the Town Clerk may be by manual or facsimile signature. The 1989 Bonds bearing the manual or facsimile signatures of the officers in office at the time of the authorization thereof shall be the valid and binding obligations of the Town (subject to the requirement of authentication by the Registrar as hereinafter provided), notwithstanding that before the delivery thereof and payment therefor or before the issuance of the 1989 Bonds upon transfer or exchange, any or all of the persons whose manual or facsimile signatures appear thereon shall have ceased to fill their respective offices. The Mayor and the Town Clerk shall, by the execution of a signature certificate pertaining to the 1989 Bonds, adopt as and for their respective signatures any facsimiles thereof appearing on the 1989 Bonds. At the time of the execution of the signature certificate, the Mayor and the Town Clerk may each adopt as and for his or her facsimile signature the facsimile signature of his or her predecessor in office in the event that such facsimile signature appears upon any of the 1989 Bonds. -12- No 1989 Bond shall be valid or obligatory for any purpose unless the certificate of authentication, substantially in the form hereinafter provided, has been duly manually executed by the Registrar. The Registrar's certificate of authentication shall be deemed to have been duly executed by the Registrar if manually signed by an authorized officer or employee of the Registrar, but it shall not be necessary that the same officer or employee sign the certificate of authentication on all of the 1989 Bonds issued hereunder. By authenticating any of the 1989 Bonds initially delivered pursuant to this Ordinance, the Registrar shall be deemed to have assented to the provisions of this Ordinance. Section 11. Registration. Transfer and Exchange. A. Records for the registration and transfer of the 1989 Bonds shall be kept by the Registrar, which is hereby appointed by the Town as registrar (i.e., transfer agent) for the 1989 Bonds. Upon the surrender for transfer of any 1989 Bond at the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or his attorney duly authorized in writing, the Registrar shall enter such transfer on the registration records and shall authenticate and deliver in the name of the transferee or transferees a new 1989 Bond or Bonds of the same series, of a like aggregate Appreciated Principal Amount and of the same maturity, bearing a number or numbers not previously assigned. 1989 Bonds may be exchanged at the Registrar for an equal aggregate Appreciated Principal Amount of 1989 Bonds of the series and the same maturity of other authorized denominations. The Registrar shall authenticate and deliver a 1989 Bond or Bonds which the registered owner making the exchange is entitled to receive, bearing a number or numbers not previously assigned. The Registrar may impose reasonable charges in connection with such exchanges and transfers of 1989 Bonds, which charges (as well as any tax or other governmental charge required to be paid with respect to such exchange or transfer) shall be paid by the registered owner requesting such exchange or transfer. B. The person in whose name any 1989 Bond shall be registered on the registration records kept by the Registrar shall be deemed and regarded as the absolute owner thereof for the purpose of making payment thereof and for all other purposes; and, subject to such exception, payment of or on account of any 1989 Bond shall be made only to or upon the -13- written order of the registered owner thereof or his legal representative, but such registration may be changed upon transfer of such 1989 Bond in the manner and subject to the conditions and limitations provided herein. All such payments shall be valid and effectual to discharge the liability upon such 1989 Bond to the extent of the sum or sums so paid. C. If any 1989 Bond shall be lost, stolen, destroyed or mutilated, the Registrar shall, upon receipt of such evidence, information or indemnity relating thereto as it and the Town may reasonably require, authenticate and deliver a replacement 1989 Bond or Bonds of a like aggregate Appreciated Principal Amount and of the same maturity, bearing a number or numbers not previously assigned. If such lost, stolen, destroyed or mutilated 1989 Bond shall have matured or is about to become due and payable, the Registrar may direct the Paying Agent to pay such 1989 Bond in lieu of replacement. D. The officers of the Town are authorized to deliver to the Registrar fully executed but unauthenticated 1989 Bonds in such quantities as may be convenient to be held in custody by the Registrar pending use as herein provided. E. Whenever any 1989 Bond shall be surrendered to the Paying Agent upon payment thereof, or to the Registrar for transfer, exchange or replacement as provided herein, such 1989 Bond shall be promptly cancelled by the Paying Agent or Registrar, and counterparts of a certificate of such cancellation shall be furnished by the Paying Agent or Registrar to the Town. Section 12. Form of 1989 Bonds Le ag 1 Opinion Certificate and Registration Panel. The 1989 Bonds, the registration panel and the legal opinion certificate to appear on the 1989 Bonds shall be substantially as follows (provided that any portion of the 1989 Bond text may, with appropriate references, be printed on the back of the 1989 Bonds), with such omissions, insertions, endorsements, and variations as to any recitals of fact or other provisions as may be required by the circumstances, be required or permitted by this Ordinance, or be consistent with this Ordinance and necessary or appropriate to conform to the rules and requirements of any governmental authority or any usage or requirement of law with respect thereto: -14- (Form of Bond) STATE OF COLORADO SERIES 1989 UNITED STATES OF AMERICA TOWN OF VAIL, COLORADO SALES TAX REVENUE BOND COUNTY OF EAGLE NO. R- INTEREST RATE MATURITY DATE DECEMBER 1, DATED DATE DECEMBER 1, 1989 REGISTERED OWNER: APPRECIATED PRINCIPAL AMOUNT AT MATURITY: ORIGINAL PRINCIPAL AMOUNT PER $5000 VALUE AT MATURITY: CUSIP The Town of Vail, in the County of Eagle and State of Colorado (the "Town"), for value received, promises to pay to the registered owner specified above, or registered assigns, solely from the special funds provided therefor, the Appreciated Principal Amount specified above, on the maturity date specified above which Appreciated Principal Amount represents the original principal amount hereof plus interest compounded on each interest payment date at the Interest Rate per annum specified above from the Dated Date above to the Maturity Date, compounded on June 1, 1990 and semiannually thereafter on December 1 and June 1 of each year. The principal of and interest on this bond is payable upon presentation and surrender hereof at the principal corporate trust office of the Town's registrar -15- and paying agent (the "Registrar" or the "Paying Agent"), presently Central Bank Denver, National Association, in Denver, Colorado. All such payments shall be made in lawful money of the United States of America without deduction for the services of the Paying Agent or Registrar. The 1989 Bonds maturing are not subject to redemption prior to their respective maturities. The Bonds are issuable only as fully registered Bond in denominations of $5,000 value at maturity or any integral multiples thereof and are exchangeable for fully registered Bonds of the same maturity and series in equal aggregate Appreciated Principal Amounts and in authorized denominations at the aforesaid office of the Registrar, but only in the manner, subject to the limitations and conditions, and upon payment of the charges provided in the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance"). This Bond is fully transferable by the registered owner hereof in person or by his duly authorized attorney on the registration records kept by the Registrar upon surrender of this Bond together with a duly executed written instrument of transfer satisfactory to the Registrar. Upon such transfer a new fully registered bond of authorized denomination or denominations of the same series, aggregate Appreciated Principal Amount and maturity will be issued to the transferee in exchange for this bond, subject to such terms and conditions and on payment of the charges as set forth in the Bond Ordinance. The City and the Registrar and Paying Agent may deem and treat the person in whose name this Bond is registered as the absolute owner hereof for the purpose of making payment and for all other purposes. The 1989 Bonds are authorized for the purpose of defraying wholly or in part the costs of the Parking Facilities (as defined in the Bond Ordinance), for the payment of costs and expenses incidental thereto and to the issuance of the Bonds, [and for funding a reserve for the Bonds,] all under the authority of and in full conformity with the Constitution of the State of Colorado and the Town Charter and pursuant to the Bond Ordinance duly adopted, published and made a law of the Town, all prior to the issuance of this bond. The Bonds do not constitute a debt or an indebtedness of the Town within the meaning of any applicable charter, constitutional or statutory provision or limitation, shall not -16- be considered or held to be a general obligation of the Town, and are payable from, and constitute a pledge of, an irrevocable lien (but not necessarily an exclusive lien) on, all of the proceeds to be derived by the Town from the Pledged Sales Tax (as defined in the Bond Ordinance) and from any taxes which hereafter may be imposed by the Town in addition thereto or in substitution therefor, Net Revenues (as defined in the Bond Ordinance) of the Parking Facilities (as defined in the Bond Ordinance), any taxes, funds or revenues which the Town hereafter pledges to the payment of the Bonds, certain other moneys held in the Bond Fund and the Reserve Fund (as both such funds are defined in the Bond Ordinance), and investment income on certain funds, atl to the extent that such moneys are at any time required to be deposited into and held in the Income Fund, the Bond Fund, and the Reserve Fund created by, and as provided in, the Bond Ordinance, subject to certain exceptions and exclusions as provided in the Bond Ordinance (the "Pledged Revenues"). The Bonds constitute a pledge of, and an irrevocable lien (but not necessarily an exclusive lien) on all of the Pledged Revenues. The Bonds are equitably and ratably secured by a Lien on the Pledged Sales Tax, but the Bonds only constitute an irrevocable and second and subordinate lien (but not necessarily an exclusive second lien) upon the Pledged Sales Tax, such lien being second and subordinate to the lien of the Town's outstanding General Obligation Bonds, Series 1985 (the "1985 Bonds"). In connection with the Pledged Sales Tax and as required by the ordinance which authorized the 1985 Bonds, the Town shall fully provide for the debt service, reserve account, and other requirements of the 1985 Bonds in any fiscal year and, only after such provision, may use excess Pledged Sales Taxes for the payment of the principal of and interest on the Series Bonds, by transferring such excess Pledged Sales Taxes to the Income Fund (as defined in the Bond Ordinance). The Bands constitute an irrevocable and first lien (but not necessarily an exclusive first lien) upon the other Pledged Revenues except for the Pledged Sales Tax. Payment of the principal of and interest on this bond shall be made from, and as security for such payment there are irrevocably (and exclusively) pledged, pursuant to the -17- Bond Ordinance, moneys deposited and to be deposited in a special fund of the Town (the "Bond Fund") into which fund the Town has covenanted under the Ordinance to pay from the Pledged Revenues, a sum sufficient, together with other moneys available in the Bond Fund therefor, to pay when due the principal of and interest on the 1989 Bonds and any Additional Bonds (as defined in the Bond Ordinance). In addition, there is irrevocably and exclusively pledged to the payment of the 1989 Bonds and any Additional Bonds (as defined in the Bond Ordinance) a reserve fund (the "Reserve Fund") which will be maintained as a reasonable reserve therefor. Except as otherwise specified in the Bond Ordinance, this Bond is entitled to the benefits of the Ordinance equally and ratably both as to principal (and redemption price) and interest with all other Bonds issued and to be issued under the Bond Ordinance, to which reference is made for a description of the rights of the owners of the 1989 Bonds and the rights and obligations of the Town. This bond is payable from the Pledged Revenues, and the owner hereof may not look to any general or other fund of the Town for the payment of the principal of and interest on this bond except the Pledged Revenues. Reference is made to the Bond Ordinance for the provisions, among others, with respect to the custody and application of the proceeds of the 1989 Bonds, the receipt and disposition of the Pledged Revenues, the nature and extent of the security, the terms and conditions under which additional bonds payable from the Pledged Revenues may be issued, the rights, duties and obligations of the Town, and the rights of the owners of the Bonds; and by the acceptance of this bond the owner hereof assents to all provisions of the Bond Ordinance. The principal of and the interest on this bond shall be paid, and this bond is transferable, free from and without regard to any equities between the Town and the original or any intermediate owner hereof or any setoffs or cross-claims. This bond must be registered in the name of the owner on the registration records kept by the Registrar in conformity with the provisions stated herein and endorsed herein and subject to the terms and conditions set forth in the Bond Ordinance. No transfer -18- of this bond shall be valid unless made on the registration records maintained at the principal office of the Registrar by the registered owner or his attorney duly authorized in writing. This bond shall not be valid or obligatory for any purpose until the Registrar shall have manually signed the certificate of authentication herein. IN TESTIMONY WHEREOF, the Town Council of the Town of Vail has caused this bond to be signed and executed in its name with a manual or facsimile signature of the Mayor of the Town, and to be signed, executed and attested with a manual or facsimile signature of the Town Clerk, with a manual or facsimile impression of the seal of the Town affixed hereto, all as of the date specified above. _ f Manual or Facsimile Si nature Mayor (MANUAL OR FACSIMILE SEAL) Attest: (Manual or Facsimile Si~nature,~ Town Clerk (End of Form of Bond) -19- (Form of Registrar's Certificate of Authentication) This is one of the Bonds described in the within-mentioned Bond Ordinance, and this Bond has been duly registered on the registration records kept by the undersigned as Registrar for such Bonds. ASSOCIATION, Date of Authentication and Registration: CENTRAL BANK DENVER, NATIONAL as Registrar By: Authorized Officer or Employee (End of Form of Registrar's Certificate of Authentication) -20- (Form of Assignment) For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and hereby irrevocably constitutes and appoints attorney, to transfer the same on the records of the Registrar, with full power of substitution in the premises. Dated: Signature Guaranteed: Address of transferee: Social Security or other tax identification number of transferee: NOTE: The signature to this Assignment must correspond with the name as written on the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. (End of Form of Assignment) -21- (Form of Legal Opinion Certificate) STATE OF COLORADO ) LEGAL OPINION COUNTY OF EAGLE ) SS. CERTIFICATE TOWN OF VAIL ) I, the undersigned Town Clerk of the Town of Vail, in the County of Eagle and State of Colorado, do hereby certify that the following approving legal opinion of Sherman & Howard, Attorneys at Law, Denver, Colorado: (Insert text of legal opinion] is a true, perfect and complete copy of a manually executed and dated copy thereof on file in the records of the Town in my office; that a manually executed and dated copy of the opinion was forwarded to a representative of the original purchasers for retention in their records; and that the opinion was dated and issued as of the date of the delivery of and payment for the Bonds of the series of which this is one. IN WITNESS WHEREOF, I have caused to be hereunto set my manual or facsimile signature. (Manual or Facsimile Si nature) Town Clerk (End of Form of Legal Opinion Certificate) -22- Section 13. Delivery of 1989 Bonds and Disposition of Proceeds. When the 1989 Bonds have been duly executed by appropriate Town officers and authenticated by the Registrar, the Town Manager shall cause the 1989 Bonds to be delivered, at one time or from time to time, to the Purchaser, on receipt of the agreed purchase price. The 1989 Bonds shall be delivered in such denominations as the Purchaser shall direct (but subject to the provisions of Section 5 hereof); and the Registrar shall initially register the 1989 Bonds in such name or names as the Purchaser shall direct. The proceeds of the 1989 Bonds, including without limitation the accrued interest thereon, shall be deposited promptly by the Town Manager and shall be accounted for in the following manner and are hereby pledged therefor, but the Purchaser of the 1989 Bonds or any subsequent Owner in no manner shall be responsible for the application or disposal by the Town or any of its officers of any of the funds derived from the sale: (i) All accrued interest, if any, received in respect of the 1989 Bonds shall be credited to the Bond Fund to be applied to the payment of the 1989 Bonds. (ii) [An amount equal to the Maximum Annual Debt Service Requirement shall be credited to the Reserve Fund. [or] The Bond Reserve Insurance Policy issued by Bond Insurer simultaneously with the delivery of the 1989 Bonds shall be deposited to and held in the Reserve Fund.] (iii) All remaining proceeds of the Series 1989 Bonds shall be credited to the following special and separate account, hereby created and established, to be known as the "Town of Vail, Colorado Sales Tax Revenue Bonds, Series 1989, Construction Fund," to be used, together with any other available moneys therefor, to pay the costs of the Parking Facilities including costs incidental to the issuance of the 1989 Bonds. After payment of all costs of the Parking Facilities, or after adequate provisions therefor is made, any unexpended balance in the Construction Fund shall be deposited in the Bond Fund and applied to the payment of the principal of and interest on the Series 1989 Bonds. -23- Section 14. Use of Moneys in Income Fund. A. Income Fund. So long as any Bonds shall be Outstanding, either as to principal or interest, the Pledged Revenues shall, upon receipt by the Town, be deposited in the following special and separate account, hereby created and established, to be known as the "Town of Vail Income Fund." The following payments shall be made from the Income Fund: B. Bond Fund. First, there shall be credited from the Income Fund to a fund hereby created and to be known as the "Town of Vail, Sales Tax Bond Fund" the following amounts: 1. Interest Payments. Monthly to the Bond Fund, commencing on the first day of the month immediately succeeding the delivery of any of the Bonds, or commencing on the first day of the month one year next prior to the first interest payment date of any of the Bonds, whichever commencement date is later, an amount in equal monthly installments necessary, together with any moneys therein and available therefor, to pay the interest due and payable on the Outstanding Bonds on the next succeeding interest payment date. 2. Principal Payments. Monthly to the Bond Fund, commencing on the first day of the month immediately succeeding the delivery of any of the Bonds, or commencing on the first day of the month one year next prior to the first principal payment date of any of the Bonds, whichever commencement date is later, an amount in equal monthly installments necessary, together with any moneys therein and available therefor, to pay the principal and redemption premium, if any, due and payable on the Outstanding Bonds on the next succeeding principal payment date. 3. Reduction of Pavments. If prior to any interest payment date or principal payment date, there has been accumulated in the Bond Fund the entire amount necessary to pay the next maturing installment of interest or principal, or both, the payment required in subparagraph (1) or (2) (whichever is applicable) of this paragraph, may be appropriately reduced; but the required monthly amounts again shall be so credited to such account commencing on such interest payment date or principal payment date. The moneys in the -24- Bond Fund shall be used only to pay the principal of, prior redemption premium if any, and interest on the Bonds as the same becomes due. C. Reserve Fund. Second, except as hereinafter provided, from any moneys remaining in the Income Fund there shall be credited monthly, to a separate account hereby created and to be known as the "Town of Vail Sales Tax Revenue Bonds Reserve Fund" an amount, if any, which is necessary to maintain the Reserve Fund as a continuing reserve in an amount not less than the Maximum Annual Debt Service Requirement or to pay the issuer of any Bond Reserve Insurance Policy any amounts owing to such issuer under the terms of the Bond Reserve Insurance Policy. In determining the amounts required to be deposited as provided above, the Town shall receive credit for any investment earnings on the deposits in the Reserve Fund. No credit need be made to the Reserve Fund so long as the moneys and/or a Bond Reserve Insurance Policy therein equal the Maximum Annual Debt Service Requirement (regardless of the source of such accumulations). The Maximum Annual Debt Service Requirement shall be accumulated and maintained as a continuing reserve to be used, except as hereinafter provided in subsections D, and F of this Section and Section 20 hereof, only to prevent deficiencies in the payment of the principal of and the interest on the Bonds resulting from the failure to credit to the Bond Fund sufficient funds to pay said principal and interest as the same accrue or to pay the issuer of any Bond Reserve Insurance Policy any amounts owing to such issuer under the terms of the Bond Reserve Insurance Policy. The Maximum Annual Debt Service Requirement shall be calculated upon (i) any principal payment, whether at stated maturity or upon redemption, (ii) the issuance of Additional Bonds, or (iii) the defeasance of all or a portion of the Bonds. In lieu of all or a portion of the moneys required to be deposited in the Reserve Fund by this Ordinance, the Town may at any time or from time to time deposit a Bond Reserve Insurance Policy in the Reserve Fund in full or partial satisfaction of the Maximum Annual Debt Service Requirement; provided that any such Bond Reserve Insurance Policy shall be payable on any date on which moneys will be required to be withdrawn from the Reserve -25- Fund as provided herein. Upon deposit of any Bond Reserve Insurance Policy in the Reserve Fund, the Town may transfer moneys equal to the amount payable under the Bond Reserve Insurance Policy from the Reserve Fund and apply such moneys to any lawful purpose. If the covenant contained in Section 19.K. of this Ordinance does not permit the use of proceeds of any series of Bonds for a full funding of the Reserve Fund in the amount of the Maximum Annual Debt Service Requirement, the maximum amount of proceeds of such series of Bonds which may be deposited to the Reserve Fund pursuant to Section 19.K. shall be deposited to the Reserve Fund upon the issuance of such series of Bonds, and Pledged Revenues shall be deposited to the Reserve Fund monthly so that not later than twelve calendar months after the date of issuance of such series of Bonds, the amount on deposit in the Reserve Fund shall equal the Maximum Annual Debt Service Requirement. D. Termination Uoon Deposits to Maturity or Redemption Date. No payment need be made into the Bond Fund, the Reserve Fund, or both, if the amount in the Bond Fund and the amount in the Reserve Fund total a sum at least equal to the entire amount of the Outstanding Bonds, both as to principal and interest to their respective maturities, or to any redemption date on which the Town shall have exercised its option to redeem the Bonds then Outstanding and thereafter maturing, including any prior redemption premiums then due, and both accrued and not accrued, in which case moneys in said two funds in an amount at least equal to such principal and interest requirements shall be used solely to pay such as the same accrue, and any moneys in excess thereof in said two funds may be withdrawn and used for any lawful purpose. E. Defravin~ Delinquencies in Bond and Reserve Funds. If on any required monthly payment date the Town shall for any reason fail to pay into the Bond Fund the full amount above stipulated, then an amount shall be paid into the Bond Fund on such date from the Reserve Fund equal to the difference between the amount paid and the full amount so stipulated. The money so used shall be replaced in the Reserve Fund from the first Pledged Revenues received that are not required to be otherwise applied by this section, but excluding -26- any payments required for any subordinate obligations; provided, however, that an amount equal to the amount withdrawn from the Reserve Fund shall be deposited by the Town in the Reserve Fund no later than twelve months from the date of such withdrawal. If at any time the Town shall for any reason fail to pay into the Reserve Fund the full amount above stipulated from the Pledged Revenues, the difference between the amount paid and the amount so stipulated shall in a like manner be paid therein from the first Pledged Revenues thereafter received not required to be applied otherwise by this section, but excluding any payments required for any subordinate obligations. The moneys in the Bond Fund and in the Reserve Fund shall be used solely for the purpose of paying the principal and any redemption premium of and the interest on the Bonds and moneys in the Reserve Fund shall be used to pay the issuer of any Bond Reserve Insurance Policy any amounts owing to such issuer under the terms of the Bond Reserve Insurance Policy; provided, however, that any moneys at any time in excess of the Maximum Annual Debt Service Requirement calculated with respect to the Bonds in the Reserve Fund may be withdrawn therefrom and used for any lawful purpose; and provided, further, that any moneys in the Bond Fund and in the Reserve Fund in excess of accrued and unaccrued principal and interest requirements to the respective maturities of the Outstanding Bonds may be used as provided in Paragraph D of this section. F. Rebate Fund. Third, there shall be deposited in a special account hereby created and to be known as the '.'Town of Vail Sales Tax Revenue Bonds Rebate Fund" amounts required by Section 148(f) of the Tax Code to be held until such time as any required rebate payment is made. Amounts in the Rebate Fund shall be used for the purpose of making the payments to the United States required by Section 148(f) of the Tax Code. Any amounts in excess of those required to be on deposit therein by Section 148(f) of the Tax Code shall be withdrawn therefrom and deposited into the Income Fund. Funds in the Rebate Fund shall not be subject to the lien created by this Ordinance to the extent such amounts are required to be paid to the United States Treasury. The Town may create separate accounts in the Rebate Fund in connection with the issuance of Additional Bonds. -27- G. Payment for Subordinate Obli ations. After the payments required by Paragraphs B, C and F of this section, the Pledged Revenues shall be used by the Town for the payment of interest on and principal of any subordinate lien obligations hereafter authorized to be issued and payable from the. Pledged Revenues, including reasonable reserves therefor. H. Use of Remaining Revenues. After making the payments required to be made by this Section, any remaining Pledged Revenues may be used for any lawful purpose. Nothing in this Ordinance shall prevent the Town from withdrawing from the Income Fund amounts collected by the Town and subsequently determined, pursuant to the applicable Sales Tax Ordinances, to be subject to valid claims for refunds. Section 15. General Administration of Funds. The funds designated in Sections 13 and 14 hereof shall be administered as follows subject to the limitations stated in Section 19.K. hereof: A. Budget and Appropriation of Funds. The sums provided to make the payments specified in Section 14 hereof are hereby appropriated for said purposes, and said amounts for each year shall be included in the annual budget and the appropriation ordinance or measures to be adopted or passed by the Town Council in each year respectively while any of the 1989 Bonds, either as to principal or interest, are Outstanding and unpaid. No provision of any constitution, statute, charter, ordinance, resolution or other order or measure enacted after the issuance of the 1989 Bonds shall in any manner be construed as limiting or impairing the obligation of the Town to keep and perform the covenants contained in this Ordinance so long as any of the 1989 Bonds remain Outstanding and unpaid. Nothing herein shall prohibit the Town Council, at its sole option, from appropriating and applying other funds of the Town legally available for such purpose to the Bond Fund or Reserve Fund for the purpose of providing for the payment of the principal of, interest on or any premiums due with respect to the 1989 Bonds. -28- B. Places and Times of Deposits. Each of the special funds created in Section 14 hereof and the Construction Fund created in Section 13 hereof shall be maintained in a Commercial Bank as a book account kept separate and apart from all other accounts or funds of the Town as trust accounts solely for the purposes herein designated therefor. For purposes of investment of moneys, nothing herein prevents the commingling of moneys accounted for in any two or more such book accounts pertaining to the Pledged Revenues or to such funds and any other funds of the Town to be established under this Ordinance. Such book account shall be continuously secured to the fullest extent required by the laws of the State for the securing of public funds and shall be irrevocable and not withdrawable by anyone for any purpose other than the respective designated purposes of such funds or accounts. Each periodic payment shall be credited to the proper book account not later than the date therefor herein designated, except that when any such date shall be a Saturday, a Sunday or a legal holiday, then such payment shall be made on or before the next preceding business day. C. Investment of Funds. Any moneys in the Construction Fund created pursuant to Section 13 hereof, and any moneys in any fund established by Section 14 of this Ordinance may be deposited, invested or reinvested in any manner permitted by law. Securities or obligations purchased as such an investment shall either be subject to redemption at any time at face value by the holder thereof at the option of such holder, or shall mature at such time or times as shall most nearly coincide with the expected need for moneys from the fund in question. Securities or obligations so purchased as an investment of moneys in any such fund shall be deemed at all times to be a part of the applicable fund. The Town shall present for redemption or sale on the prevailing market any securities or obligations so purchased as an investment of moneys in a given fund whenever it shall be necessary to do so in order to provide moneys to meet any required payment or transfer from such fund. The Town shall have no obligation to make any investment or reinvestment hereunder, unless any moneys on hand and accounted for in any one account exceed $5,000 and at least $5,000 therein will not be needed for a period of not less than sixty days. In such event the Town shall invest or -29- reinvest not less than substantially all of the amount which will not be needed during such sixty day period, except for any moneys on deposit in an interest bearing account in a Commercial Bank, without regard to whether such moneys are evidenced by a certificate of deposit or otherwise, pursuant to this Section 15.B. and Section 15.C. hereof; but the Town is not required to invest, or so to invest in such a manner, any moneys accounted for hereunder if any such investment would contravene the covenant concerning arbitrage in Section 19.K. hereof. D. No Liability for Losses Incurred in Performing Terms of Ordinance. Neither the Town nor any officer of the Town shall be liable or responsible for any loss resulting from any investment or reinvestment made in accordance with this Ordinance. E. Character of Funds. The moneys in any fund or account herein authorized shall consist of lawful money of the United States or investments permitted by Section 15.C. hereof or both such money and such investments (except the Escrow Account, which shall consist of the investments described in the Escrow Agreement). 1Vloneys deposited in a demand or time deposit account in or evidenced by a certificate of deposit of a Commercial Bank pursuant to Sections 15.B. and 15.C. hereof, appropriately secured according to the laws of the State, shall be deemed lawful money of the United States. Section 16. Lien on Pledged Revenues. The 1989 Bonds constitute a pledge of, and an irrevocable lien (but not necessarily an exclusive lien) on all of the Pledged Revenues. The 1989 Bonds are equitably and ratably secured by a lien on the Pledged Sales Tax, but the 1989 Bonds, in accordance with the requirements of the Series 1985 Ordinance, only constitute an irrevocable and second and subordinate lien (but not necessarily an exclusive second lien) upon the Pledged Sales Tax, such lien being second and subordinate to the lien of the Town's Series 1985 Bonds. In connection with the Pledged Sales Tax and as required by the Series 1985 Ordinance, the Town shall fully provide for the debt service, reserve account, and other requirements of the Series 1985 Bonds in any Fiscal Year and, only after such provision, may use excess Pledged Sales Taxes for the payment of the principal of and -30- interest on the Series 1989 Bonds, by transferring such excess Pledged Sales Taxes to the Income Fund. The Series 1989 Bonds constitute an irrevocable and first lien (but not necessarily an exclusive first lien) upon the other Pledged Revenues except for the Pledged Sales Tax. Section 17. Additional Bonds. A. Limitations Upon Issuance of Additional Bonds. Nothing in this Ordinance shall be construed in such a manner as to prevent the issuance by the Town of additional bonds or other obligations, payable from and constituting a lien upon the Pledged Revenues on a parity with the lien of the 1989 Bonds (the "Additional Bonds"). Such Additional Bonds may be payable solely from Pledged Revenues or they may be payable from Pledged Revenues and another revenue or fund of the Town ("Additional Pledged Revenues"). Regardless of whether payable solely from Pledged Revenues or from Pledged Revenues and Additional Pledged Revenues, before any such bonds or other obligations are authorized or actually issued the following condition shall be satisfied: for the Fiscal Year immediately preceding the issuance of any Additional Bonds, the amount of Pledged Revenues in such Fiscal Year must equal or exceed _% of the Maximum Annual Debt Service Requirement on the Bonds (including the Additional Bonds proposed to be issued) plus the outstanding Series 1985 Bonds. For the purpose of satisfying the aforementioned _% test, any tax, now existing or hereafter imposed, which legally becomes a part of the Pledged Revenues during the Fiscal Year preceding the issuance of Additional Bonds, or any tax which is to legally become a part of the Pledged Revenues immediately prior to the issuance of Additional Bonds, or any increase in the rate of any tax which is a part of the Pledged Revenues which increase is imposed during the Fiscal Year preceding the issuance of Additional Bonds or any such increase which is to be imposed immediately prior to the issuance of Additional Bonds can be considered for its estimated effect on the amount of the Pledged Revenues as if such tax or increase had been in effect for the Fiscal Year immediately preceding the issuance of such Additional Bonds. Any tax which is no longer in effect at the time of issuance of the Additional Bonds shall not -31- be considered for purposes of satisfying the _% test. Any Pledged Revenue which is not a tax shall be considered similarly for purposes of satisfying the _% test. If the ordinance authorizing a series of Additional Bonds will pledge Additional Pledged Revenues to the Bonds, the estimated effect of the amount of such Additional Pledged Revenues may be considered as if such revenues had been received for the last Fiscal Year immediately preceding the issuance of such Additional Bonds. B. Certificate of Revenues. A written certification by a certified public accountant who is not an employee of the Town that the requirements of paragraph A of this section have been met shall be conclusively presumed to be accurate in determining the right of the Town to authorize, issue, sell and deliver said Additional Bonds on a parity with the 1989 Bonds herein authorized. C. Subordinate Obligations Permitted. Nothing in this Ordinance shall be construed in such a manner as to prevent the issuance by the Town of additional obligations payable from and constituting a lien upon the Pledged Revenues subordinate or junior to the lien of the 1989 Bonds. D. Superior Obligations Prohibited. Nothing in this Ordinance shall be construed so as to permit the Town to hereafter issue obligations payable from the Pledged Revenues having a lien thereon prior or superior to the 1989 Bonds. Section 18. Refunding Obligations. A. Generally. If at any time after the 1989 Bonds, or any part thereof, shall have been issued and remain Outstanding, the Town shall find it desirable to refund any Outstanding obligations payable from the Pledged Revenues, said obligations, or any part thereof, may be refunded, subject to the provisions of Paragraph B of this Section, if (1) the obligations to be refunded, at the time of their required surrender for payment, shall then mature or shall then be callable for prior redemption at the Town's option upon proper call, or (2) the owners of the obligations to be refunded and Bond Insurer, if Bond Insurer insured such obligations, consent to such surrender and payment. -32- B. Protection of Obligations Not Refunded. Any refunding obligations payable from the Pledged Revenues shall be issued with such details as the Town Council may provide, so long as there is no impairment of any contractual obligation imposed upon the Town by any proceedings authorizing the issuance of any unrefunded portion of obligations payable from the Pledged Revenues; but so long as any 1989 Bonds are Outstanding, refunding obligations payable from the Pledged Revenues may be issued on a parity with the unrefunded Bonds only if: (1) Prior Consent. The Town first receives the consent of the owner or owners of the unrefunded Bonds and Bond Insurer, if Bond Insurer insured such obligations; or (2) Requirements Not Increased. The refunding obligations do not increase by more than $25,000, for any Fiscal Year prior to and including the last maturity date of any unrefunded Bonds, the aggregate principal and interest requirements evidenced by such refunding obligations and by any Outstanding Bonds not refunded, and the lien of any refunding parity obligations on the Pledged Revenues is not raised to a higher priority than the lien thereon of any obligations thereby refunded; or (3) Earnin s Test. The refunding obligations are issued in compliance with paragraphs A and B of Section 17 hereof. Section 19. Protective Covenants. The Town hereby additionally covenants and agrees with each and every owner of the 1989 Bonds that: A. Use of 1989 Bond Proceeds. The Town will proceed with the construction of the Parking Facilities without delay and with due diligence. B. Payment of 1989 Bonds. The Town will promptly pay the Appreciated Principal Amount of every 1989 Bond issued hereunder and secured hereby on the dates and in the manner specified herein and in said 1989 Bonds according to the true intent and meaning hereof. Such Appreciated Principal Amount is payable solely from the Pledged Revenues. -33- C. Amendment of Certain Ordinances• Duty to Impose Sales Tax• Impairment of Contract. The Sales Tax Ordinances are in full force and effect and have not been repealed or amended. The Town will not repeal or amend said Sales Tax Ordinances in any manner which would diminish the proceeds of the Sales Tax by an amount which would materially adversely affect the rights of the owners of the Bonds. The Town agrees that any law, ordinance or resolution of the Town, in any manner affecting the Pledged Revenues or the Bonds, or otherwise appertaining thereto, shall not be repealed or otherwise directly or indirectly modified in such manner as to materially adversely affect any Bonds Outstanding, unless the required consent is obtained, all as provided in Section 28 of this Ordinance. Notwithstanding any other provision of this Section or this Ordinance, the Town shall retain the right to make changes, without any consent of Bond owners or the Bond Insurer, in the Sales Tax Ordinances, or any ordinance supplemental thereto or in substitution therefor, concerning the use of proceeds of the Pledged Sales Tax remaining after the current requirements of all ordinances authorizing bonds or other securities payable from the Pledged Sales Tax, or any portion thereof, have been met; or concerning changes in applicability, exemptions, administration, collection or enforcement of the Sales Tax, if such changes do not materially adversely affect the security for the Bonds; but the Town shall not reduce the present rates of the Pledged Sales Tax, without the consent of the owners of sixty-six percent (66%) in aggregate principal amount of the then Outstanding 1989 Bonds or Bond Insurer (whichever is appropriate}, as provided in Section 28 of this Ordinance. The foregoing covenants are subject to compliance by the Town with orders of courts of competent jurisdiction concerning the validity, constitutionality or collection of such tax revenues, any legislation of the United States or the State or any regulation or other action taken by the federal government or any State agency or any political subdivision of the State pursuant to such legislation, in the exercise of the police power thereof for the public welfare, which legislation, regulation or action applies to the Town as a Colorado home rule city and limits or otherwise inhibits the amount of such tax revenues due to the Town. All of the -34- Pledged Revenues resulting from the imposition and collection of the Sales Tax shall be subject to the payment of the principal of, interest on, and redemption premium, if any, of all securities payable from the Pledged Revenues, including reserves therefor, as provided herein or in any instrument supplemental or amendatory hereof. D. Defense of Legality of Pledged Revenues. There is not pending or threatened any suit, action or proceeding against or affecting the Town before or by any court, arbitrator, administrative agency or other governmental authority which affects the validity or legality of this Ordinance, or the Sales Tax Ordinances or the imposition and collection of the Sales Tax, any of the Town's obligations under this Ordinance or any of the transactions contemplated by this Ordinance or the Sales Tax Ordinances. The Town shall, to the extent permitted by law, defend the validity and legality of this Ordinance, the Sales Tax and the Sales Tax Ordinances against all claims, suits and proceedings which would diminish or impair the Pledged Revenues. Furthermore, the Town shall amend from time to time the provisions of any ordinance or resolution of the Town, as necessary to prevent impairment of the Pledged Revenues as required to meet the principal of, interest on, and prior redemption premium, if any, of the 1989 Bonds when due. E. Further Assurances. At any and all times the Town shall, so far as it may be authorized by law, pass, make, do, execute, acknowledge, deliver and file or record all and every such further instruments, acts, deeds, conveyances, assignments, transfers, other documents and assurances as may be necessary or desirable for the better assuring, conveying, granting, assigning and confirming all and singular the rights, the Pledged Revenues and other funds and accounts hereby pledged or assigned, or intended so to be, or which the Town may hereafter become bound to pledge or to assign, or as may be reasonable and required to carry out the purposes of this Ordinance. The Town, acting by and through its officers, or otherwise, shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of said Pledged Revenues and other funds and accounts pledged hereunder and all the rights of -35- every owner of any of the 1989 Bonds against all claims and demands of all Persons whomsoever. F. Conditions Precedent. Upon the issuance of any of the 1989 Bonds, all conditions, acts and things required by the Constitution or laws of the United States, the Constitution or laws of the State, the Charter or this Ordinance, to exist, to have happened, and to have been performed precedent to or in the issuance of the 1989 Bonds shall exist, have happened and have been performed, and the 1989 Bonds, together with all other obligations of the Town, shall not contravene any debt or other limitation prescribed by the Constitution or laws of the United States, the Constitution or laws of the State or the Charter. G. Records. So long as any of the 1989 Bonds remain Outstanding, proper books of record and account will be kept by the Town, separate and apart from all other records and accounts, showing complete and correct entries of all transactions relating to the Pledged Revenues and the funds created or continued by this Ordinance. H. Audits. The Town further agrees that it will, within 140 days following the close of each fiscal year, cause an audit of such books and accounts to be made by a certified public accountant, who is not an employee of the Town, showing the revenues and expenditures of the Pledged Revenues. The Town agrees to allow the owner of any of the 1989 Bonds to review and copy such audits and reports, at the Town's offices, at his request. Copies of such audits and reports will be furnished to Bond Insurer and the Purchaser. I. Performing Duties. The Town will faithfully and punctually perform all duties with respect to the Pledged Revenues required by the Charter and the Constitution and laws of the State and the ordinances and resolutions of the Town, including but not limited to the proper collection and enforcement of the Sales Taxes and the segregation of the Pledged Revenues and their application to the respective funds herein designated. J. Other Liens. As of the date of issuance of the 1989 Bonds, other than the Series 1985 Bonds and the 1989 Bonds, there are no liens or encumbrances of any nature whatsoever on or against any of the Pledged Revenues. -36- K. Tax Covenant. The Town covenants for the benefit of the Registered Owners of the 1989 Bonds that it will not take any action or omit to take any action with respect to the 1989 Bonds, the proceeds thereof, any other funds of the Town or any facilities financed with the proceeds of the 1989 Bonds if such action or omission (i) would cause the interest on the 1989 Bonds to lose its exclusion from gross income for federal income tax purposes under Section 103 of the Tax Code, (ii) would cause interest on the 1989 Bonds to lose its exclusion from alternative minimum taxable income as defined in Section 55(b)(2) of the Tax Code except to the extent such interest is required to be included in the adjusted net book income and adjusted current earnings adjustments applicable to corporations under Section 56 of the Tax Code in calculating corporate alternative minimum taxable income, (iii) would subject the Town to any penalties under Section 148 of the Tax Code or (iv) would cause interest on the 1989 Bonds to lose its exclusion from Colorado taxable income or Colorado alternative minimum taxable income under present Colorado law. The foregoing covenant shall remain in full force and effect notwithstanding the payment in full or defeasance of the 1989 Bonds until the date on which all obligations of the Town in fulfilling the above covenant under the Tax Code and Colorado law have been met. L. Town's Existence. The Town will maintain its corporate identity and existence so long as any of the 1989 Bonds remain Outstanding, unless another political subdivision by operation of law succeeds to the duties, privileges, powers, liabilities, disabilities, immunities and rights of the Town and is obligated by law to receive and distribute the Pledged Revenues in place of the Town, without materially adversely affecting the privileges and rights of any owner of any Outstanding 1989 Bonds. M. Performance of Duties. The Town will faithfully and punctually perform or cause to be performed all duties with respect to the Gross Revenues and the Parking Facilities required by the laws of the State and the resolutions of the Town, including without limitation filing and collecting reasonable and sufficient charges for services rendered or furnished by the -37- Parking Facilities as herein provided, and the proper segregation of the Gross Revenues as set forth in Section 14 hereof and their application to the respective funds as herein provided. N. Fees, Rates and Char. So long as the Series 1989 Bonds authorized herein remain Outstanding, the Town will cause to be established, imposed and maintained such reasonable fees, rates and other charges for the use or otherwise in respect of the Parking Facilities as will provide in each Fiscal Year sufficient Gross Revenues which together with other Pledged Revenues shall be sufficient: (i) To pay the general operating expenses; and (ii) to pay the annual requirements of principal of, premium, if any, and interest on the Outstanding Bonds, including any required credit to the Reserve Fund and the Rebate Fund. Such fees, rates and charges shall be reasonable and just, taking into account the cost and value of the Parking Facilities and the costs of operating and maintaining them, and the amounts necessary for the retirement of all bonds and any other obligations payable from the gross revenues, accrued interest thereon and any reserves therefor. O. Prompt Collections. The Town will cause the Gross Revenues to be collected promptly and accounted for in the funds as herein provided P. IVlaintenance of Parking Facilities. The Town will at all times maintain the Parking Facilities in good repair, working order and condition, will continually administer and operate the Parking Facilities, and from time to time will make all needful and proper repairs, renewals and replacements of the Parking Facilities. Q. Disposal of Property Prohibited. Except for any lease or other right of use for proper rentals or other consideration, the Town will not sell, mortgage, pledge or otherwise encumber, or in any manner dispose of, or otherwise alienate, the Parking Facilities or any part thereof, until all 1989 Bonds shall have been paid in full, both principal and interest, or unless provision has been made therefor, except as provided in Section 19.R. hereof. -38- R. Disposal of Unnecessa Property. The Town may sell, destroy, abandon, otherwise dispose of, or alter at any time any property comprising a part of the Parking Facilities which shall have been replaced by other property of at least equal value, or which shall cease to be necessary for the efficient operation of the Parking Facilities, or which will not materially adversely affect the owners of the 1989 Bonds. A written determination by the Town that the Gross Revenues will be sufficient to meet the requirements of this Section 19.R, shall be conclusively determined to be accurate; provided, however, that in the event of any sale or other compensated disposition as aforesaid, the proceeds received on such disposition shall be credited to the Bond Fund. S. Fire and Extended Coverage Insurance. The Town shall acquire and maintain, or cause to be acquired and maintained, fire and extended coverage insurance on the Parking Facilities in amounts at least sufficient to provide for not less than full recovery whenever the loss from perils insured against does not exceed ninety (90%) of the full insurable value of the Parking Facilities. The Town, at its election, may provide for such fire and extended coverage insurance on the Parking Facilities partially or wholly by means of a self- insurance fund as provided by applicable law, in compliance with the requirements hereof. Any such self-insurance shall be deemed to be insurance coverage hereunder. T. Other Insurance. The Town shall purchase and maintain in connection with, but not necessarily limited to, the Parking Facilities public liability insurance and workmen's compensation insurance in such amounts and to such extent as may be required under the laws of the State or, in the absence of any State requirement, in an amount not less than the limitations provided in the Colorado Governmental Immunity Act (Article 10, Title 24 of the Colorado Revised Statutes, as amended). The Town, at its election, may provide for the insurance specified in this Section 19.T partially or wholly by means of aself-insurance fund as provided by applicable law. Any such self-insurance shall be deemed to be insurance coverage hereunder. The proceeds of fire and extended coverage insurance covering the Parking Facilities, at the option of the Town, shall (i) be used forthwith for the purpose of -39- repairing the property destroyed, provided that any insurance proceeds remaining upon the completion of such repair or replacement shall be deposited in the Bond Fund or (ii) be deposited forthwith to the Bond Fund. U. Sure Bonds. Each official of the Town having custody of the Pledged Revenues, or responsible for their handling, shall be fully bonded at all times, which bond shall be conditioned upon the proper application of such money. V. Prejudicial Contracts and Action Prohibited. No contract will be entered into, nor will any action be taken, by the Town by which the rights and privileges of any Owner are impaired or diminished. W. No Free Use. No free use, facilities, or other commodities shall be furnished by the Parking Facilities during the months of January, February, March and December of each year. If the Town elects in any manner to sue such Parking Facilities or any part thereof, or any service derived therefrom, any such use, or service will be paid for from the Town's general fund or from other available moneys other than Net Revenues at the reasonable value of the use so made. All the income so derived from the Town shall be deemed to be income derived from the operation of the Parking Facilities, to be used and to be accounted for in the same manner as any other income derived from the operation of such facility. Section 20. Defeasance. When the 1989 Bonds have been fully paid, all obligations hereunder shall be discharged, and the 1989 Bonds shall no longer be deemed to be Outstanding for any purpose of this Ordinance, except as set forth in Section 19.K. hereof. Payment of any 1989 Bonds shall be deemed made when the Town has placed in escrow with a Trust Bank an amount sufficient (including the known minimum yield from Governmental Obligations) to meet all requirements of Appreciated Principal Amount as the same become due to maturity. The Governmental Obligations shall become due prior to the respective times on which the proceeds thereof shall be needed, in accordance with a schedule agreed upon -aa between the Town and such Trust Bank at the time of creation of the escrow and shall not be callable prior to their scheduled maturities by the issuer thereof. In the event that there is a defeasance of only part of the 1989 Bonds of any maturity, the Registrar shall, if requested by the Town, institute a system to preserve the identity of the individual 1989 Bonds or portions thereof so defeased, regardless of changes in bond numbers attributable to transfers and exchanges of 1989 Bonds; and the Registrar shall be entitled to reasonable compensation and reimbursement of expenses from the Town in connection with such system. Section 21. Deleeated Powers. The officers of the Town be, and they hereby are, authorized and directed to take all action necessary or appropriate to effectuate the provisions of this Ordinance, including, without limiting the generality of the foregoing, the printing of the 1989 Bonds with the opinion of bond counsel thereon, the procuring of bond insurance entering into and executing appropriate agreements with the Registrar and Paying Agent as to its services hereunder, and the execution of such certificates as may be required by the Purchaser, including, but not necessarily limited to, the absence and existence of factors affecting the exclusion of interest on the 1989 Bonds from gross income for federal income tax purposes. The form, terms and provisions of the Registrar Agreement and Escrow Agreement hereby are approved, and the Town shall enter into and perform its obligations under the Registrar Agreement and Escrow Agreement in substantially the forms of such documents presented to the Town Council at this meeting, with only such changes therein as are required by the circumstances and are not inconsistent herewith; and the Mayor and Town Clerk are hereby authorized and directed to execute and deliver the Registrar Agreement and Escrow Agreement as required hereby. Section 22. Events of Default. Each of the following events is hereby declared an "event of default:" -41- A. Nonpayment of Appreciated Principal Amount. If payment of the Appreciated Principal Amount of any of the 1989 Bonds in connection therewith, shall not be made when the same shall become due and payable at maturity; or B. Incapable to Perform. If the Town shall for any reason be rendered incapable of fulfilling its obligations hereunder; or C. Default of any Provision. If the Town shall default in the due and punctual performance of its covenants or conditions, agreements and provisions contained in the 1989 Bonds or in this Ordinance on its part to be performed, other than those delineated in Paragraphs A and B of this section, and if such default shall continue for sixty days after written notice specifying such default and requiring the same to be remedied shall have been given to the Town by the Bond Insurer so long as it is not in default of its payment obligations under the Bond Insurance Policy or, during such default by the Bond Insurer, by the owners of twenty-five percent (25%) in aggregate principal amount of the 1989 Bonds then Outstanding. Section 23. Remedies. Upon the happening of any event of default as provided in Section 22 hereof, the Bond Insurer or owner or owners of not less than 25% in principal amount of the Outstanding Bonds, or a trustee therefor, may protect and enforce their rights hereunder by proper legal or equitable remedy deemed most effectual including mandamus, specific performance of any covenants, the appointment of a receiver (the consent of such appointment being hereby granted), injunctive relief, or requiring the Town Council to act as if it were the trustee of an express trust, or any combination of such remedies. Notwithstanding the foregoing, so long as the Bond Insurer is not in default in its payment obligations under the Bond Insurance Policy or the Bond Reserve Insurance Policy, the Bond Insurer shall direct the enforcement of any remedy hereunder without the consent of the owners of the Bonds. All proceedings shall be maintained for the benefit of the Bond Insurer so long as it is not in default in its payment obligations under the Bond Insurance Policy or the Bond Reserve Insurance Policy, and, during such default by the Bond Insurer, thereafter -42- for the equal benefit of all owners. The failure of the Bond Insurer or any owner to proceed does not relieve the Town or any person of any liability for failure to perform any duty hereunder. The foregoing rights are in addition to any other right available to the Bond Insurer or owners of Bonds and the exercise of any right by any owner shall not be deemed a waiver of any other right. Section 24. Duties Upon Default. Upon the happening of any of the events of default as provided in Section 22 of this Ordinance, the Town, in addition, will do and perform all proper acts on behalf of and for the owners of the 1989 Bonds to protect and preserve the security created for the payment of the 1989 Bonds and to insure the payment of the principal of and interest on said 1989 Bonds promptly as the same become due. Proceeds derived from the Pledged Revenues, so long as any of the 1989 Bonds herein authorized, either as to principal or interest, are Outstanding and unpaid, shall be paid irito the Bond Fund and the Reserve Fund, pursuant to the terms hereof and to the extent provided herein, and used for the purposes herein provided. In the event the Town fails or refuses to proceed as in this section provided, the Bond Insurer so long as it is not in default of its payment obligations under the Bond Insurance Policy or, during such a default by the Bond Insurer, the owner or owners of not less than twenty-five percent (25%) in aggregate principal amount of the 1989 Bonds then Outstanding, after demand in writing, may proceed to protect and enforce the rights of such owners as hereinabove provided. Section 25. Replacement of Registrar or Paving Agent. If the Registrar or Paying Agent initially appointed hereunder shall resign, or if the Town shall reasonably determine that said Registrar or Paying Agent has become incapable of performing its duties hereunder, the Town may, upon notice mailed to Bond Insurer and each owner of any 1989 Bond at his address last shown on the. registration records, appoint a successor Registrar or Paying Agent, or both. No resignation or dismissal of the Registrar or Paying Agent may take effect until a successor is appointed. Every such successor Registrar or Paying Agent shall be a bank or trust company having a shareowners' equity (~ capital, surplus, and undivided -43- profits), however denominated, of not less than $10,000,000. It shall not be required that the same institution serve as both Registrar and Paying Agent hereunder, but the Town shall have the right to have the same institution serve as both Registrar and Paying Agent hereunder. Section 26. Severabilitv. If any one or more sections, sentences, clauses or parts of this Ordinance shall for any reason be held invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, but shall be confined in its operation to the specific sections, sentences, clauses or parts of this Ordinance so held unconstitutional or invalid, and the inapplicability and invalidity of any section, sentence, clause or part of this Ordinance in any one or more instances shall not affect or prejudice in any way the applicability and validity of this Ordinance in any other instances. Section 27. Repealer. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, heretofore repealed. Section 28. Amendment. A. The Town may, without the consent of, or notice to the owners of the 1989 Bonds or Bond Insurer, adopt such ordinances supplemental hereto (which supplemental amendments shall thereafter form a part hereof) for any one or more or all of the following purposes: 1. To cure any ambiguity, or to cure, correct or supplement any defect or inconsistent provision contained in this Ordinance, or to make any provisions with respect to matters arising under this Ordinance or for any other purpose if such provisions are necessary or desirable and do not adversely affect the interests of the owners of the 1989 Bonds or Bond Insurer; or 2. To subject to this Ordinance additional revenues, properties or collateral. B. Exclusive of the amendatory ordinances permitted by Paragraph A of this Section, this Ordinance may be amended or supplemented by ordinance adopted by the Town -44- Council in accordance with the law, without receipt by the Town of any additional consideration but with the written consent of Bond Tnsurer, unless Bond Insurer is in default under the terms of the Bond Insurance Policy, in which case this Ordinance may be amended or supplemented with the written consent of the owners of sixty-six percent (66%) in aggregate principal amount of the 1989 Bonds Outstanding at the time of the adoption of such amendatory or supplemental ordinance; provided, however, that, without the written consent of Bond Insurer and the owners of all of the 1989 Bonds adversely affected thereby, no such Ordinance shall have the effect of permitting: 1. An extension of the maturity of any 1989 Bond authorized by this Ordinance; or 2. A reduction in the principal amount of any 1989 Bond, the rate of interest thereon, or the prior redemption premium thereon; or 3. The creation of a lien upon or pledge of Pledged Revenues ranking prior to the lien or pledge created by this Ordinance; or 4. A reduction of the principal amount of 1989 Bonds required for consent to such amendatory or supplemental ordinance; or 5. The establishment of priorities as between 1989 Bonds issued and Outstanding under the provisions of this Ordinance; or 6. The modification of or otherwise affecting the rights of the owners of less than all of the 1989 Bonds then Outstanding. Section 29. Notice to Bond Insurer. Any notice herein required to be given to Bond Insurer shall be in writing and sent by registered or certified mail to Bond Insurer, or to such other address that Bond Insurer shall notify the Town of in writing. Section 30. Ordinance Irrepealable. After any of the 1989 Bonds herein authorized are issued, this Ordinance shall constitute a contract between the Town and the -45- owners of the 1989 Bonds, and shall be and remain irrepealable until the 1989 Bonds and interest thereon shall be fully paid, cancelled and discharged as herein provided. Section 31. Disposition of Ordinance. This Ordinance, as adopted by the Council, shall be numbered and recorded by the Town Clerk in the official records of the Town. The adoption and publication shall be authenticated by the signatures of the Mayor, or Mayor Pro Tem, and Town Clerk, and by the certificate of publication. Section 32. Effective Date. This ordinance shall be in full force and effect five days after its publication upon final passage as provided in Section 4.9 of the Charter. INTRODUCED, READ AND SET FOR PUBLIC HEARING THIS day of , 1989. -46- ADOPTED AND APPROVED THIS day of , 1989. (SEAL) Attest: Town Clerk Town of Vail, Colorado Mayor Town of Vail, Colorado -47- • _a It was thereupon moved by Councilmember Lapin and seconded by Councilmember Steinberg that the foregoing Ordinance read by title at this meeting be approved on first reading, that the Ordinance be considered at a public hearing and then considered for final passage, all at the regular meeting of the Town Council to be held at the Vail Municipal Building, Vail, Colorado on Tuesday, November 21, 1989, at the hour of 7:30 p.m., and that a notice of public hearing and the ordinance in the form required by the Charter be published at least seven days prior to the public hearing in a newspaper of general circulation in the Town. The question being upon the adoption of such motion, the roll was called with the following result: Those Voting Yes: Kent R. Rose John C. Slevin Eric Affeldt Michael Cacioppo Merv Lapin Thomas Steinberg Gail Wahrlich-Lowenthal Those Voting No: None Those Absent: None At least a majority of the membership of the entire Town Council having voted in favor of such motion, the presiding officer thereupon declared the motion carried. Thereupon, the Council considered other business and took other action not concerning the 1989 Bonds. -48- ., ~, Thereafter, there being no further business to come before the meeting, on motion duly made, seconded and unanimously carried, the meeting was adjourned. Mayor Town of Vail, Colorado (SEAL) Attest: Town Clerk Town of Vail, Colorado -49- ..~ STATE OF COLORADO ) COUNTY OF EAGLE ) SS. TOWN OF VAIL ) I, Pamela Brandmeyer, duly appointed Clerk of the Town of Vail (the "Town"), Eagle County, Colorado, do hereby certify that the foregoing pages numbered 1 through 49, inclusive, constitute a true and correct copy of the record of proceedings of the Town Council of the Town, taken at a regular meeting thereof, held at the Vail Municipal Building, in Vail, Colorado, the regular meeting place of the Council, on Tuesday, November 7, 1989, insofar as said proceedings relate to the introduction and passage on first reading of an ordinance therein set forth, concerning the sale and issuance of sales tax revenue bonds of the Town. I further certify that attached hereto is an affidavit of publication of the notice of public hearing and ordinance as passed on first reading by the Town Council at said meeting; and that the Mayor and 6 other members of the Town Council were present at the meeting and the members of the Council voted as in the minutes set forth. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the Town of Vail, Colorado, this day of 1989. (SEAL) Town Clerk -50- (Attach Affidavit of Publication of Notice of Public Hearing and Ordinance At beast 7 Days Before Final Adoption) -51- c STATE OF COLORADO ) COUNTY OF EAGLE ) SS. TOWN OF VAIL ) The Town Council of the Town of Vail, Colorado, met in regular session, in full conformity with the Town Charter and the applicable laws, rules and regulations of the Town, at the Vail Municipal Building, Vail, Colorado, the regular meeting place thereof, on Tuesday, the 7th day of November, 1989, at the hour of 7:30 p.m. The following were found to be present, constituting a quorum: Mayor: Mayor Pro Tem: Councilmembers: Absent: Kent R. Rose John C. Slevin Eric Affeldt Michael Cacioppo Merv Lapin Thomas Steinberg Gail Wahrlich-Lowenthal None There also were present: Town Manager: Director of Adminis- trative Services: Town Clerk: Rondall V. Phillips Charles Wick Pam Brandmeyer Thereupon, the following proceedings, among others, were had and taken. The presiding officer introduced the following Ordinance, which was then read by title, sufficient copies of the full Ordinance having previously been made available to the Town Council and to the public: -1- a ORDINANCE NO. 30 SERIES OF 1989 AN ORDINANCE ESTABLISHING A PROGRAM OF INVESTMENTS TO PROVIDE FOR THE PAYMENT OF THE TOWN'S OUTSTANDING GENERAL OBLIGATION REFUNDING BONDS, SERIES 1985, ON DECEMBER 1, 1995 AND IN CONNECTION THEREWITH PROVIDING FOR PERIODIC INVESTMENTS OF MONEYS TO PROVIDE FOR SUCH PAYMENT; PROVIDING OTHER DETAILS IN CONNECTION THEREWITH; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. WHEREAS, the Town of Vail, Colorado (the "Town") has heretofore issued its General Obligation Refunding Bonds, Series 1985, dated as of November 15, 1985 in the original aggregate principal amount of $21,715,000 (the "1985 Bonds"); and WHEREAS, the 1985 Bonds maturing on and after December 1, 1996, are subject to redemption prior to maturity, at the option of the Town, in whole or in part, on December 1, 1995 (the "Redemption Date") upon payment of par and accrued interest, without redemption premium (the "Redemption Price"); and WHEREAS, pursuant to the Ordinance authorizing the issuance of the 1985 Bonds (the "1985 Ordinance"), the Town has agreed to pledge and set aside one-half of the Town's four percent sales tax (the "Pledged Sales Tax") to pay the principal of and interest on the 1985 Bonds; and WHEREAS, the Town desires to issue its Sales Tax Revenue Bonds, Series 1989, in the principal amount of $8,239,235 (the "1989 Bonds") and to pledge the Pledged Sales Tax and certain other revenues to the payment of the 1989 Bonds; and -2- i +-. WHEREAS, in order to obtain municipal bond insurance and therefore achieve more favorable interest rates on the 1989 Bonds, it is necessary for the Town to establish a program (the "Program") for the annual investment of Pledged Sales Tax and other legally available revenues of the Town (except for general ad valorem property taxes) in order to have sufficient funds on hand as of the Redemption Date to pay the Redemption Price of the 1985 Bonds; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Definitions. Unless otherwise defined in this Ordinance, terms used in this Ordinance shall have the meanings specified in Ordinance No. 29, Series of 1989 (the "1989 Bond Ordinance"). Section 2. Ratification. All actions heretofore taken (not inconsistent with the provisions of this Ordinance) by the Town Council and other officers of the Town in establishing the Program are ratified, approved and confirmed. Section 3. Authorization of Pro_rQ am. The Program is hereby authorized for the purpose of providing for the redemption of the 1985 Bonds on the Redemption Date, except as hereinafter set forth. Section 4. Pledge of Revenues. The Town hereby pledges to invest the following amounts on the following dates solely from the Pledged Sales Tax or such other revenues of the Town as may be legally available (except for general ad valorem property taxes): -3- Investment Amount Date The pledge of such revenues shall not constitute an indebtedness or a debt within the meaning of any applicable charter, constitutional or statutory provision or limitation, nor shall such pledge be considered to be or held to be a general obligation of the Town. The revenues so pledged shall be invested by the Town pursuant to an investment contract between the Town and dated as of December 1, 1989 (the "Investment Contract"). Section 5. Redemption of 1985 Bonds. The Town Council has elected and does hereby declare its intent to exercise on behalf of and in the name of the Town its option to redeem on the redemption date all of the 1985 Bonds maturing on and after December 1, 1996. The Town is hereby obligated to exercise such option, unless on or before October 15, 1995, the Town Finance Director delivers a certificate to the Bond Insurer that the Pledged Revenues for the twelve calendar months immediately preceding the delivery of the certificate equal or exceed _% of the Maximum Annual Debt Service Requirement. In the event such certificate is delivered, the Town shall redeem the 1985 Bonds only if authorized by resolution of the Town Council. Section 6. Deleeated Powers. The officers of the Town be, and they hereby are, authorized and directed to take all action necessary or appropriate to effectuate the provisions of this Ordinance. The form, terms and provisions of the Investment Agreement is approved, and the Town shall enter into and perform its obligations under the Investment Agreement in -4- substantially the form of such document presented to the Town Council at this meeting, with only such changes therein as are required by the circumstances and are not inconsistent herewith; and the Mayor and Town Clerk are hereby authorized and directed to execute and deliver the Investment Agreement as required hereby. Section 7. Severability. If any one or more sections, sentences, clauses or parts of this Ordinance shall for any reason be held invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, but shall be confined in its operation to the specific sections, sentences, clauses or parts of this Ordinance so held unconstitutional or invalid, and the inapplicability and invalidity of any section, sentence, clause or part of this Ordinance in any one or more instances shall not affect or prejudice in any way the applicability and validity of this Ordinance in any other instances. Section 8. Repealer. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, heretofore repealed. Section 9. Notice to Bond Insurer. Any certificate herein required to be given to Bond Insurer shall be in writing and sent by registered or certified mail to Bond Insurer, that Bond Insurer shall notify the Town of in writing. or to such other address Section 10. Disposition of Ordinance. This Ordinance, as adopted by the Council, shall be numbered and recorded by the Town Clerk in the official records of the Town. The adoption and publication shall be authenticated by the signatures of the Mayor, and Town Clerk, and by the certificate of publication. -5- 0 r Section 11. Effective Date. This ordinance shall be in full force and effect five days after its publication upon final passage as provided in Section 4.9 of the Charter. INTRODUCED, READ AND SET FOR PUBLIC HEARING THIS day of , 1989. ADOPTED AND APPROVED THIS day of , 1989. (SEAL) Attest: Town Clerk Town of Vail, Colorado 1Vlayor Town of Vail, Colorado -6- ,~ It was thereupon moved by Councilmember Lapin and seconded by Councilmember Cacioppo that the foregoing Ordinance read by title at this meeting be approved on first reading, that the Ordinance be considered at a public hearing and then considered for final passage, all at the regular meeting of the Town Council to be held at the Vail Municipal Building, Vail, Colorado on Tuesday, November 21, 1989, at the hour of 7:30 p.m., and that a notice of public hearing and the ordinance in the form required by the Charter be published at least seven days prior to the public hearing in a newspaper of general circulation in the Town. The question being upon the adoption of such motion, the roll was called with the following result: Those Voting Yes: Kent R. Rose John C. Slevin Eric Affeldt Michael Cacioppo Merv Lapin Thomas Steinberg Gail Wahrlich-Lowenthal r Those Voting No: None Those Absent: None At least a majority of the membership of the entire Town Council having voted in favor of such motion, the presiding officer thereupon declared the motion carried. Thereupon, the Council considered other business and took other action not concerning the 1989 Bonds. -7- e Thereafter, there being no further business to come before the meeting, on motion duly made, seconded and unanimously carried, the meeting was adjourned. (SEAL) Attest: Town Clerk Town of Vail, Colorado Mayor Town of Vail, Colorado -8- STATE OF COLORADO ) COUNTY OF EAGLE ) TOWN OF VAIL ) SS. I, Pamela Brandmeyer, duly appointed Clerk of the Town of Vail (the "Town"), Eagle County, Colorado, do hereby certify that the foregoing pages numbered 1 through 8, inclusive, constitute a true and correct copy of the record of proceedings of the Town Council of the Town, taken at a regular meeting thereof, held at the Vail Municipal Building, in Vail, Colorado, the regular meeting place of the Council, on Tuesday, November 7, 1989, insofar as said proceedings relate to the introduction and passage on first reading of an ordinance therein set forth. I further certify that attached hereto is an affidavit of publication of the notice of public hearing and ordinance as passed on first reading by the Town Council at said meeting; and that the Mayor and 6 other members of the Town Council were present at the meeting and the members of the Council voted as in the minutes set forth. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the Town of Vail, Colorado, this day of 1989. Town Clerk (SEAL) -9- .~ (Attach Affidavit of Publication of Notice of Public Hearing and Ordinance At Least 7 Days Before Final Adoption) -10- ORDINANCE NO. 24 Series of 1989 AN ORDINANCE AMENDING SECTION 8 OF ORDINANCE NO. 14 SERIES OF 1987 TO PROVIDE FOR THE AMENDMENT OF DENSITY OF THE APPROVED DEVELOPMENT PLAN FOR SPECIAL DEVELOPMENT DISTRICT NO. 6 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, AS FOLLOWS: Section 1. Legislative Intent A. In 1976, the Vail Town Council passed Ordinance No. 7, Series of 1976, establishing Special Development District No. 6 to insure the unified and coordinated develpment of a critical site as a whole and in a manner suitable for the area in which it was situated. B. Special Development District No. 6 provided in Section 14 that the Town Council reserve the right to abrogate or modify Special Development District No. 6 for good cause through the enactment of an ordinance in conformity with the zoning code of the Town of Vail. C. In 1985, the Vail Town Council passed Ordinance No. 1, Series of 1985 providing certain amendments to the development plan for Special Development District No. 6. D. In 1987, the Vail Town Council passed Ordinance No. 14, Series of 1987 providing certain amendments to the development plan for Special Development District No. 6. E. Application has been made to the Town of Vail to modify and amend Section 8 of Ordinance No. 14, Series of 1987 which relates to the allowed density of the development plan for Special Development District No. 6. F. The Planning and Environmental Commission of the Town of Vail has reviewed the changes. G. The Vail Town Council considers that the amendments provide a more unified and aesthetically pleasing development of a critical site within the Town and such amendments are of benefit to the health, safety, welfare of the inhabitants of the Town of Vail. Section 2. A. Section 18.50.130 Density is hereby amended to read as follows: ,y The gross residential floor area (GRFA) of all districts in the Special Development District shall not exceed 124,527 square feet. There shall be a minimum of 148 accommodation units and 67,367 square feet of GRFA devoted to accommodation units in Phase IV and Phase V of Special Development District No. 6. 3,927 square feet of GRFA shall be allocated to unit 30 of the Vail Village Plaza Condominiums only. B. Section 11 of Ordinance 14, Series of 1987 is hereby amended by the addition of subsection 9 which shall read as follows: 9. Condominium unit 30 of the Vail Village Plaza Condominiums shall be subject to the restrictions of Section 17.26.075 of the Town of Vail Subdivision Regulations if utilized for residential purposes. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The repeal or the repeal and re-enactment of any provisions of the Vail Municipal Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision repealed or repealed and re- enacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. r ~' INTRODUCED, READ AND PASSED ON FIRST READING THIS 7th day of November 1989, and a public hearing shall be held on this ordinance on the 7th day of November 1989 at 7:30 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ordered published in full this 7th day of November 1989. Kent R. Rose, Mayor ATTESTo Pamela A. Brandmeyer, Town Clerk INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of 1989. ATTESTe Kent R. Rose, Mayor Pamela A. Brandmeyer, Town Clerk C ORDINANCE N0. 25 Series of 1989 AN ORDINANCE AMENDING TITLE 17 TO ADD CHAPTER 17.25 DEALING WITH SINGLE FAMILY SUBDIVISIONS; AMENDING SECTION 17.08.210 TO PROVIDE A DEFINITION FOR SINGLE FAMILY SUBDIVISIONS; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town Council of the Town of Vail believes that establishing a new category of subdivision called single family subdivision will promote the health, safety, and welfare of the present and future inhabitants of the Town of Vail, Colorado; and WHEREAS, the Planning and Environmental Commission has recommended the creation of a new form of subdivision called single family subdivision. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Section 17.08.210 Subdivision is hereby amended by the addition of paragraph F to read as follows: 17.08.210 SUBDIVISION F. "Single Family Subdivision" means a subdivision of an existing lot, which is recognized by the Town of Vail as a legally subdivided lot, and which shall contain single family or primary/secondary detached dwelling units. Each such dwelling unit shall be separated from any other dwelling unit by space on all sides. For zoning purposes, the lots created by a single family subdivision shall be treated as one lot. Section 2. Chapter 17 of the Municipal Code of the Town of Vail is hereby amended by the addition of Chapter 17.25 Single Family Subdivisions to read as follows: 17.25.010 Single Family Subdivisions - Required Approval A single family subdivision shall only be permitted on property that is recognized by the Town of Vail as a legally subdivided lot. No single family subdivision shall be approved unless the lots to be contained within the subdivision have foundations constructed thereon at the time of the submittal. 17.25.030 Single Family Subdivisions - Submittal Requirements A. Two mylar copies of the subdivision plat shall be submitted to the Department of Community Development. The plat shall include a site map as required by Section 17.22.030. The plat must contain the following statement: "For zoning 3 purposes, the lots created by this subdivision are to be treated as one lot with no more than two dwelling units allowed on the combined area of the two lots." The statement shall be modified to indicate the number of units and parcels proposed. B. A copy of declarations and/or covenants relating to the subdivision which shall assure the maintenance of any common areas which may be created. The covenants shall run with the land and shall be in a form suitable for recordation with~the Eagle County Clerk and Recorder. 17.25.040 Guarantee for Completion and Maintenance of Improvements The requirement for the guarantee for completion and maintenance of improvements shall comply with Section 17.16.250. 17.25.050 Single Family Subdivisions - Procedure The single family subdivision procedure shall be as set forth in 17.22.050 of this title with the additional requirement of an improvement location certificate. 17.25.080 Criteria for Review The burden of proof shall rest with the applicant to show that the subdivision complies with the zoning ordinance with respect to building location and other aspects of the structure and grounds, with the original plans as approved by the Design Review Board of the Town and the accurateness and integrity of the survey data found on the plat. 17.25.100 Appeal of Zoning Administrator's Decision The Zoning Administrator's decision may be appealed to the PEC in accordance with the procedures set forth in Section 18.66.030 of the Vail Municipal Code. 17.25.110 Filing and Recording The Department of Community Development will record the plat and any related covenants with the Eagle County .Clerk and Recorder. Fees for recording shall be paid by the applicant. The Community Development Department will retain one mylar copy of the plat for their records and will record the remaining mylar copy. Section 3. If any part, section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed this Ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. -2- ~/ i ~ Section 4. The Town Council hereby finds, determines and declares that this Ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 5. The repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this Ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. INTRODUCED, READ AND APPROVED ON FIRST READING this 7th day of November , 1989, and a public hearing shall be held on this Ordinance on the 7th day of November 1989, at 7:30 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ordered published in full this 7th day of November 1989. ent R. Rose, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of lggg. Kent R. Rose, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk -3- ORDINANCE N0. 26 Series of 1989 AN ORDINANCE AMENDING SECTION 18.24.020 OF THE MUNICIPAL CODE OF THE TOWN OF VAIL BY ADDING "COMMERCIAL SKI STORAGE" AS A PERMITTED USE IN BASEMENT OR GARDEN LEVELS WITHIN STRUCTURES IN THE COMMERCIAL CORE I ZONE DISTRICT. WHEREAS, the Town Council is of the belief that ski storage is an acceptable use in basement or garden levels within a structure in the Commercial Core I Zone District; and WHEREAS, the Town of Vail Planning and Environmental Commission has recommended that commercial ski storage be permitted as a permitted use in basement or garden levels within a structure in the Commercial Core I Zone District. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Section 18.24.020 B(2) is hereby amended by the addition of "Commercial Ski Storage". Section 2. If any part, section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed this Ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 3. The Town Council hereby finds, determines and declares that this Ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 4. The repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this Ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. INTRODUCED, READ AND APPROVED ON FIRST READING this 7th day of November 1989, and a public hearing shall be held on this Ordinance on the 7th day of November 1989, at 7:30 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ordered published in full this nth day of November lggg. ATTEST: amela A. Brandmeyer, Town Clerk Kent R. Rose, Mayor INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this __ day of ATTEST: Pamela A. Brandmeyer, Town Clerk . 1989. Kent R. Rose, Mayor -2- ORDINANCE N0. 27 Series of 1989 AN ORDINANCE AMENDING CHAPTER 2.20 LOCAL LICENSING AUTHORITY OF THE MUNICIPAL CODE OF THE TOWN OF VAIL, COLORADO TO ADD AN APPLICATION FEE FOR TEMPORARY LIQUOR LICENSE UNDER THE COLORADO LIQUOR CODE; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Legislature of the State of Colorado has passed a statute authorizing the issuance by Local Licensing Authorities of temporary licenses to licensees whose license has expired and has not been renewed; and WHEREAS, the Town Council wishes to set a fee to be paid for .the issuance of such license. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Section 2.20.110 Application Fees is hereby amended by the addition of Section F to read as follows: 2.20.11.0 APPLICATION FEES F. Temporary .licenses - $250 Section 2. If any part, section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to. be invalid, such decision shall not affect the validity of the remaining portions of this Ord finance; and the Town Council hereby declares it would have passed this Ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 3. The Town Council hereby finds, determines and declares that this Ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 4. Thy repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this Ordinance shall not affect any right which has accrued,-any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. INTRODUCED, READ AND APPROVED ON FIRST READING this 7th day of November 1989, and a public hearing shall be held on this Ordinance on the 7th day of November 1989, at 7:30 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ordered published in full this 7th day of November 1989. Kent R. Rose, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of 1989. Kent R. Rose, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk -2- ~,, ~ ORDINANCE N0. 28 Series of 1989 AN ORDINANCE AMENDING CERTAIN SECTIONS OF CHAPTER 16.22 SO THAT CHAPTER 16.22 REGULATES SIGNS IN THE ARTERIAL BUSINESS DISTRICT ZONE DISTRICT OF THE TOWN OF VAIL (ABD) AS WELL AS THE COMMERCIAL CORE III ZONE DISTRICT (CC3). WHEREAS, the Town Council of the Town of Vail wishes to provide sign categories for the Arterial Business Zone District. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. The title of Chapter 26.22 of the Municipal Code of the Town of Vail is hereby amended to read Sign Categories for CC3 Zone District and ABD Zone Districts. Section 2. Section 16.22.010 designated is hereby amended to read as follows: 16.22.010 A. This chapter concerns those types of permanent and temporary signs requiring a sign application permit under the provisions of this title for property within the CC3 and ABD zone districts. This chapter further includes the purpose of each sign type, size, height, number, location, design, and landscaping requirements, and special provisions for each type of sign. B. The following is a listing of sign categories permitted in the CC3 and ABD under th.e provisions of this title: 1. Building identification signs; 2. Display boxes; 3. Flags, pennants, banners, and bunting; 4. Murals and supergraphics; 5. Political signs; 6. Projecting and hanging signs, arcades; 7, Projecting and hanging signs, individual businesses within a multi-tenant building; 8. Projecting and hanging signs, joint directory signs for a multi-tenant building; 9. Sign programs; 10. Public information signs; 11. Temporary site development signs; ~-` 12. Traffic control signs for private property; 13. Wall signs, arcade; 14. Wall signs, individual businesses within a multi-tenant building; 15. Wall signs, joint directory signs for a multi-tenant building; 16. Wall signs, single business use; 17. Window signs. C. A business or organization within CC3 and/or ABD is permitted the following number of signs provided the provisions of each category are met: 1. An individual business with a multi-tenant building may have the following signs: a. A display box; b. A projecting and hanging sign or a wall-mounted sign; c. Traffic control signs; d. Window signs; e. Other temporary signs as permitted in the provisions of this Code; f. Space within a joint directory sign for the building. 2. An individual business which is the sole occupant within a building may have the following signs: a. A display box; b. A wall sign or a free standing sign; c. Traffic control signs; d. Window signs; e. Other temporary signs as permitted in the provisions of this Code; D. Following in Section 16.22.020 through 16.22.160 is a listing by sign types of the requirements under this Section. Section 3. Section 16.22.015 Building Identification Signs, paragraph C, is hereby amended to read as follows: 16.22.015 BUILDING IDENTIFICATION SIGNS C. Height; wall-mounted building identification signs: No part of the sign shall extend above twenty-five (25) feet from existing grade or the plate line of a building, whichever is less; Free standing building identification signs: -2- a . ,, No part of the sign shall extend above eight (8) feet from existing grade; Section 4. Section 16.22.100 Sign Program, paragraph I(1), is hereby amended to read as follows: 16.22.100 SIGN PROGRAM I. 1. At the time that any sign on a building located within Commercial Core III or Arterial Business District is removed, changed, or altered in any way, a sign program for that particular building must be submitted to Design Review Board and approved prior to the erection of any new sign on the building. Section 5. Section 16.22.100 I(4) is hereby amended to read as follows: 16.22.100 I. 4. In the case where a building located .within CC3 or ABD has a business frontage which is not adjacent to the North or South Frontage Roads, but has calculable frontage which is located along a pedestrian way at the end of a building adjacent to the interior of CC3 or ABD and has direct access or display area along that pedestrian way, the provisions applicable shall be the same as for a business fronting on an arcade, subject to the approval of the Design Review Board. Section 6. Section 16.22.100 I(4)(b) is hereby amended to read as follows: 16.22.100 I. 4. b. This provision is not applicable to businesses with frontage adjacent to exterior boundaries of CC3 or ABD other than the North and South Frontage Roads. Section 7. Section 16.22.110, paragraph A, is hereby amended to read as follows: 16.22.110 A. Purpose, to indicate or identify a development of real property under construction in CC3 or ABD. Section 8. Section 16.22.120 is hereby amended to read as follows: 16.22.120 TRAFFIC CONTROL SIGNS FOR PRIVATE PROPERTY Traffic control signs for CC3 or ABD shall be regulated as follows: A. Purpose, to relieve vehicular and pedestrian traffic congestion and promote the safe and expedient flow and parking of traffic on private property; -3- 4 ,~~ B. Size, all vehicular traffic control signs shall not exceed one square foot, except multi-purpose signs, which shall not exceed four square feet. All pedestrian traffic control signs shall not exceed one square foot, except multi-purpose signs, which shall not exceed four square feet, subject to the approval of the design review board; C. Height, no part of the sign shall extend above six feet from existing grade; D. Number, subject to the approval of the design review board; E. Location shall be determined by design review board, with a letter of approval from the town engineer for any sign placed adjacent to a public street or way; F. Design, subject to the approval of the design review board; G. Lighting, indirect, at the discretion of the design review board; H. Landscaping at discretion of design review board; I. Special provisions shall be as follows: 1. May be either free-standing or wall-mounted, with same size requirements; 2. No individual sign will be approved unless it conforms to an overall sign program for the entire building, submitted by the applicant; 3. No sign shall contain any advertising, but may identify the owner by name; 4. If a "no parking" sign (as furnished by the town) is used, there may be no other sign for the same purpose. Section 9. Section 16.22.140, paragraph E, shall be amended as follows: 16.22.140 E. Location, parallel to the exterior wall of the individual business or organization, adjacent to the North or South Frontage Roads, subject to the approval of the Design Review Board; Section 16.22.140, paragraph H(3), is here amended to read as follows: 16.22.140 H. 3. An individual business with no calculable frontage along the North or South Frontage Roads, or with a basement or second floor entrance, may have one (1) sign with a maximum area of five (5) square feet in a location approved by the -4- ~•' ~ .Y . Design Review Board or designated in a specific sign program for the building in which the business or organization is located. Ccrtinn 11 Section 16.22.150, paragraph E, is hereby amended to read as follows: 16.22.150 E. Location, parallel to the exterior wall adjacent to the North or South Frontage Roads subject to the approval of the Design Review Board. Section 12. If any part, section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed this Ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections,. subsections, sentences, clauses or phrases be declared invalid. Section 13. The Town Council hereby finds, determines and declares that this Ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Corf-inn lA The repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this Ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. INTRODUCED, READ AND APPROVED ON FIRST READING this 7th day of November , 1989, and a public hearing shall be held on this Ordinance on the 7th day of November - 1989, at 7:30 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ordered published in full this 7th day of November 1989• ATTEST: Pamela A. Brandmeyer, Town Clerk Kent R. Rose, Mayor -5- 4.~ V INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of . 1989. Kent R. Rose, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk -6- A TO: Town Council FROM: Community Development Department DATE: November 21, 1989 SUBJ: Sign variance request for Showroom, located in the Applicant: The Finishing the Finishing Touch Furniture Inn at West Vail Touch I. THE REQUEST The applicant is requesting a variance from Section 16.22.070(C) of the Town of Vail Municipal Code. This section of the code addresses the allowable height of projecting and hanging signs, and in fact limits the allowable height to fifteen feet above existing grade. The existing awning and associated signage is approximately 25 feet off the ground and thus requires a height variance of 10 feet. II. BACKGROUND ON REQUEST In early July, the Finishing Touch Furniture Showroom moved into a new lease space in the Inn at Vail, formerly the Raintree Inn, and erected a sign and awning without Town of Vail approval. A decision was made by the Town of Vail to allow the applicant to maintain the existing awning while he submitted for a sign variance. The original request to the Design Review Board was a request to receive approval for the existing awning as well as two other proposed signs. On July 5, 1989, the Design Review Board heard a sign variance request from the Finishing Touch Furniture Showroom. At that time, the application entailed a variance request from three sections of the Town of Vail Sign Code: Section 16.22.070 B. Size Section 16.22.070 C. Height Section 16.22.070 D. Number of signs At that meeting, and after a lengthy discussion, the applicant tabled the request in order to further review and amend the application. After several meetings with the Design Review Board and the staff, the applicant has now decided to eliminate the directional sign and the identification sign adjacent to the retail entrance, and limit the request for a variance to the allowable sign height. The amended application includes only one 20 square foot sign, located 25 feet above grade on the existing awning. ~r ,~ III. FINDINGS AND STAFF RESPONSES Before the Board acts on a variance application, the applicant must prove physical hardship and the Board must find that, A. There are special circumstances or conditions applying to the land, buildings, topography, vegetation, sign structures or other matters on adjacent lots or within the adjacent right-of-way which would substantially restrict the effectiveness of the sign in question; provided, however, that such special circumstances or conditions are unique to the particular business or enterprise to which the applicant desires to draw attention and do not apply generally to all businesses or enterprises. Staff Response The staff cannot support the degree of variance which is being requested in this particular application. Although the applicant has reduced the degree of variance by eliminating the directional and identificaiton signs originally proposed adjacent to the retail entrance, the main problem the staff has had with this application is the existing awning. As we also stated in the July 5, 1989 memo, we feel the size and height of the awning requested along the North Frontage Road is grossly in excess of what is required for this business and does in fact draw undue attention to itself. The staff feels that both the awning and the square footage of sign that is displayed along the North Frontage Road is excessive and should be reduced in size. B. That special circumstances were not created by the ~plicant or anyone in privy to the applicant. Staff Response• The main entrance to this retail space is located on the west side of the building. Although this is a difficult location for access off of the North Frontage Road, the staff does not believe that this warrants a height variance to the degree proposed by the applicant. The staff previously agreed to support a sign location on the west side of the south wall to mitigate the entrance location. However, the applicant has withdrawn that request. C. That the granting of the variance will be in general harmony with the purpose of this title and will not be materially detrimental to the persons residing or working in the vicinity, to adjacent property, to the neighborhood, or to the public welfare in general. `r C Staff Response: The staff feels that this request goes beyond the intent of the Sign Code for the Commercial Core III area. The Town Council, in the past, has granted several variances in the West Vail area, and while the staff believes that some variance may be appropriate for this business, we feel that the applicant has taken the proposed amendments to his original application in the wrong direction. The height and the number of signs are two of the most important criteria in the Sign Code. While the applicant has eliminated the need for variance in the number of signs, he is still requesting a substantial variance in height. We feel that as a first floor retail store with additional second floor footage, we would be setting a dangerous precedent to support a height variance of this magnitude in the Commercial Core III area. D. The variance applied for does not depart from the provisions of this title any more than is required to identify the applicant's business or use Staff Response: We feel that the existing awning displayed across the front of this building goes well beyond the provisions of this title and is higher and larger than what the staff believes would be required to identify the applicant's business. As we have stated in our previous memorandum, we feel that in order for the staff to be able to support a variance for this location, the sign on the south elevation of the building must be reduced in size and height. IV. STAFF RECOMMENDATIONS: The Community Development Department recommends denial of this proposed variance. We feel that the height of the proposed sign along the North Frontage Road grossly exceeds what is required to identify this business, that the sign calls undue attention to itself, and that the existing hardship is not adequate to support a variance of this degree from the Town of Vail Sign Code. * See attached letter for the Design Review Board's action at their October 18, 1989 public hearing. +~ t i I town of uai ~1 ~~ 75 south frontage road vail, Colorado 81657 (303) 479-2138 (303)479-2139 Mr. Jim Wilson, Owner Finishing Touch 2211 North Frontage Rd. Vail, CO 81657 Dear Mr. Wilson, office of community development At their public hearing of October 18, 1989, the Town of Vail Design Review Board, by a vote of 4-l, recommended denial of your requested sign variance. The Design Review Board made findings consistent with sections III - A, B, C, and D of the October 18, 1989 staff memorandum. This recommendation will be presented to the Vail Town Council at their November 7, 1989 evening meeting. The Design Review Board also reviewed the design of your proposed "awning" and by a vote of 5°0 unanimously denied the request. The Board found that your proposal was not consistent with Section 16.16.020 of the Town's Sign Code - Not Dominating - "The sign should not visually dominate the structure to which it belongs or call undue attention to itself." If you should have any questions, please feel free to contact me at 479-2138. Sincerely, Mike Mollica Town Planner xc: Peter Patten Larry Eskwith Bruce Allen ~~ TOWN OF VAIL MEMORANDUM T0: Ron Phillips Council Members FROM: Steve Thompson DATE: November 14, 1989 RE: October 31st Investment Report Enclosed is the investment report with balances as of October 31, 1989. The balance of the portfolio at October 31, 1989 was $12.1 million which was $400,000 less than at the end of September and 39~ more than the balance at the same time last year. As of 10/31/89 the Town has earned approximately $862,000 in interest income which is $330,000 more than the $532,000 budgeted for 1989. We should end the year earning over a million dollars in interest income. We have continued to roll our maturing investments into repurchase agreements as we need all the available cash we have now to make the December 1st debt service payment and to defease the RETT warrants on December 27th. Please let me know if you have any questions. cc :. Charlie Wick Steve Barwick Town of Vail, Colorado Investment Report Summary of Accounts and Investments For the Month Ending October 31, 1989 Money Market Accounts (see page 1) Commercial Banks Colorado Investment Pools :• Total Commercial Savings & Funds For Reserve Balances Percentage Percentage Operating Funds * 10/31/89 of Total Allowed --------------------------------------------------------- 540,679 5217,058 5257,737 2.12% 50% 51,024,599 51,024,599 8.44% 100% ------------------------------------ ------ 51,065,278 5217,058 51,282,336 10.56% ------------------------------------ ------ ------------------------------------ ------ Banks Loans ----------------------- Certificates of Deposit (see page 2) Eagle County Institutions 5210,992 5200,000 510,992 5210,992 Other Colorado Institutions 50 National Institutions 51,782,000 51,584,000 52,376,000 5990,000 53,366,000 Total 51,992,992 51,584,000 52,576,000 51,000,992 53,576,992 Percentage of Portfolio in Savings & Loans U.S. Government Securities (see page 3) Repurchase Agreements Treasury Notes GNMA~s U.S. Savings Bonds Federal Agency Discount Notes Total Total Portfolio Maturing Within 12 Months Maturing Within 24 Months Maturing After 24 Months * 52,068,050 is reserves that the Town does not have access to for operations 1.74% 0.00% 27.72% 29.46% 100% 13.05% 25% 54,519,112 54,519,112 37.22% 75% 5230,000 5850,000 51,080,000 8.89% 100% 5180,024 5180,024 1.48% 100% 516,884 516,884 0.14% 100% 51,486,900 51,486,900 12.25% 100% 56,432,920 5850,000 57,282,920 59.98% 510,074,198 52,068,050 512,142,248 100.00% 59,578,340 78.88% 51,741,000 14.34% 5822,908 6.78% 512,142,248 100.00% 11/3/89 slml invsm910 .. Money Market Accounts as of October 31, 1989 --For the Month of October-- Account Institution Balances Type of Accounts High Low Average 10/31/89 ------------------------- ----------------------------------------------- First Bank of Vail - Operating Interest 8.710% 7.860% 8.150% -------------------------------- -------------------------------- Balance 52,075,685 5334,213 51,093,293 521,766 -------------------------------- -------------------------------- first Bank of Vail - Insurance Interest 8.710% 7.860% 8.150% Balance -------------------------------- -------------------------------- Colorado Trust (Investment Pool) Interest 8.350% Balance Central Bank of Denver Reserve Accounts Interest 5.000% Balance Central Bank of Denver Operating Account Interest 8.081% Balance 5211,743 51,024,599 55,315 518,913 --------------- 1,282,336 --------------- --------------- 11/3/89 slml invmm910 Page 1 Certificates of Deposit as of October 31, 1989 Bank Name, Location Days to Rates Purchase Maturity Maturity Maturity Ins ----- Coupon Yield ----------------- Date ----------- Date ----------- at Purchase --------------- Value --------- ---- First American Bank, Boston Mass FDIC 10.290% 10.290% 12-Nov-87 12-Nov-90 1096 599,000 Vail National Bank FDIC 8.750% 8.750% 04-Apr-89 04-Apr-90 365 510,992 FDIC 9.250% 9.250% 03-Jan-89 03-Jan-90 365 5100,000 FDIC 9.250% 9.250% 26-Jan-89 26-Jan-90 365 5100,000 First Federal of the Carol inas, High Point North Carolina FSLIC 10.250% 10.250% 30-Mar-89 30-Mar-90 365 599,000 Firstate Financial, Orlando Florida FSLIC 10.500% 10.250% 31-Mar-89 02-Apr-90 367 $99,000 Hawthorne Savings and Loan Associatio n, Oceansid e California FSLIC 9.750% 9.750% 18-Apr-89 30-Nov-89 226 599,000 First National Bank of Glens Falls, G lens Falls New York FDIC 9.750% 9.750% 18-Apr-89 30-Nov-89 226 599,000 Exeter Banking Company, New Hampshire FDIC 9.900% 9.900% 18-Apr-89 30-Nov-89 226 $99,000 San Antonio Federal Savings Bank, Wes laco Texas FSLIC 10.500% 10.500% 03-Apr-89 03-Apr-90 365 $99,000 Security Savings and Loan, Chicago Il linois FSLIC 9.950% 9.950% 18-Apr-89 18-Apr-90 365 599,000 Midstate Savings and Loan Associaton, Baltimore Maryland FSLIC 10.350% 10.100% 21-Apr-89 18-Oct-90 545 599,000 First Savings and Loan, Beverly Hills California Reserved Funds FSLIC 10.375% 10.125% 10-Apr-89 03-Jun-91 784 $99,000 Sterling Savings and Loan, Irvine Cal ifornia Re served Funds FSLIC 10.500% 10.250% 10-Apr-89 02-Dec-91 966 599,000 Bay Loan & Investment Bank , East Gree nwich, RI, Reserved Funds FDIC 9.300% 9.050% 11-Jul-89 02-Dec-91 874 599,000 Homestead Savings Associat ion, Middle town, PA, R eserved Funds FSLIC 9.100% 8.900% 21-Ju1-89 02-Dec-91 864 599,000 Security Pacific State Bank, Irvine, CA FDIC 9.150% 8.900% 11-Jul-89 11-Jul-90 365 $99,000 East Bank, Neu York, NY FDIC 9.000% 8.900% 11-Jul-89 11-Jul-91 730 599,000 Westside Savings and Loan Association , CA FSLIC 9.200% 8.950% 03-Aug-89 12-Mar-90 221 $99,000 ffi1,794,992 Page 2 Continued Certificates of Deposit as of October 31, 1989 Bank Name, Location Days to Rates Purchase Maturity Maturity Maturity Ins Coupon Yield Date Date at Purchase -------------------------- - -- Value ---------- - - ------------------------------- Brentwood Square Savings and Loan, Los Angeles California Rese rved Funds FSLIC 10.150% 9.900% 09-May-89 O8-May-91 729 599,000 First Chesire Bank, Keene Neu Hampshire FDIC 10.100% 9.850% 15-May-89 14-May-90 364 599,000 ~ Trustcorp Bank, Toledo Ohio FDIC 9.750% 9.890% 12-May-89 14-May-90 367 599,000 St. Edmond's Savings and Loan Association, Philad elphia Pennsy lvania FSLIC 10.250% 10.000% 05-May-89 05-Nov-90 549 $99,000 Monadnock Bank, Jaffrey New Hampshire FDIC 10.000% 9.750% 12-May-89 14-May-90 367 599,000 Fidelity Federal Savings Bank, Richmond Virginia FSLIC 10.000% 10.000% 05-May-89 07-May-90 367 599,000 Eastern Savings Bank, Hunt Valley Maryland FSLIC 9.750% 9.750% 17-May-89 30-Nov-89 197 $99,000 Kislak National Bank, North Miami Florida FDIC 9.700% 9.700% 25-May-89 25-May-90 365 $99,000 Standard Pacific Savings and Loan, Newport California Reserved Funds FSLIC 9.875% 9.670% 26-May-89 28-May-91 732 599,000 I Century Bank and Trust, Somerville Massachusetts Reserved Funds FDIC 9.450% 9.450% 26-May-89 26-Nov-90 549 $99,000 Century Bank of Suffolk, Suffotk Massachusetts Reserved Funds FDIC 9.450% 9.450% 30-May-89 29-Nov-90 548 599,000 Republic National Bank, Phoenix Arizona Reserved Funds FDIC 9.750% 9.500% 30-May-89 29-Nov-90 548 599,000 Lyndonville Savings Bank & Trust, Lyndonville, VT, Reserved Funds FDIC 9.250% 9.050% 26-Jul-89 01-Jun-92 1041 $99,000 First Capital Bank, Concord, NH FDIC 9.000% 9.000% 07-Ju1-89 01-Dec-89 147 599,000 Souhegon National Bank, Milford, NH FDIC 9.350% 9.100% 07-Jul-89 03-Jan-90 180 599,000 Mission Viejo National Bank, Mission Viejo, CA FDIC 9.400% 9.150% 10-Jul-89 05-Apr-90 269 $99,000 Coast Bank, Long Beach, CA FDIC 9.250% 9.000% 10-Ju1-89 10-Jut-90 365 $99,000 Charter Bank for Savings, Santa Fe, NM FSLIC 9.250% 9.000% 10-Jul-89 13-Ju1-90 368 599,000 Avg Yield 9.595% $3,576,992 Avg Days to Maturity 297 invcd910 11/2/89 stmt Page 2 1 Government Securities as of October 31, 1989 ***Treasury Notes*** Rates Coupon Yield ------------------------- 8.875% 7.470% 8.875% 9.067'/ 9.375% 9.630% 8.250% 8.259% Average Maturity Years Average Yield ***Repurchase Agreements*** Years to Purchase Maturity Maturity Years to Par Date Date at Purchase Maturity Value -------------------------------------------------------- 11-Mar-86 15-Feb-96 9.94 6.30 5230,000 02-Dec-88 30-Nov-90 1.99 1.08 $250,000 28-Feb-89 28-Feb-91 2.00 1.33 5200,000 31-Aug-89 31-Aug-91 2.00 1.83 5400,000 2.63 51,080,000 8.53% ____________ Average Purchase Maturity Par Institution Yield Date Date Value ------------------------------------------------------------------------------------ Prudential Bache 8.649% 20-Dec-88 Open 54,519,112 54,519,112 ***GNMA'S*** Years to Estimated Purchase Maturity Maturity Years to Principal Pool ------------ Coupon -- --- Yield -------- Date --- Date at Purchase Maturity Outstanding 5803 ------- 8.000% 8.480% -------- 14-Nov-86 ----------- 15-Oct-05 ------------ 19.10 ----------- 16.00 ------------- $45,032 13003 8.000% 9.500% 24-Oct-86 15-Oct-06 20.20 17.00 563,010 14659 8.000% 9.200% 24-Oct-86 15-Jan-07 21.20 18.00 571,982 Avg Yield 9.125% $180,024 ***U.S. Savings Bonds*** Years to Issue Maturity Maturity Years to Book Maturity Series Yield Date Date at Purchase Maturity Value Value ------ ------------------------------------------------------------------------------- EE 7.170% 01-Oct-86 01-Oct-96 10.00 6.92 516,884 $30,000 ------------------------ ------------------------ ***Federal Agency Discount Notes*** Days to Purchase Maturity Maturity Days to Book Maturity - Yield --------- Date ------------ Date ---------- at Purchase -- Maturity Value Value FHLB 10.353% 03-Apr-89 30-Nov-89 ---------- 241.00 ------------ 30.00 ----------- $245,971 ------------ $250,000 FHLB 10.069% 05-Apr-89 01-Dec-89 240.00 31.00 $246,010 5250,000 FHLB 9.400% 25-May-89 25-May-90 365.00 206.00 5500,000 5500,000 FHLB 8.490% 11-Jul-89 15-Nov-89 127.00 15.00 - $494,919 ----------- $500,000 ------------ 51,486,900 $1,500,000 Average Maturity Days 71 _ ___________ ____________ Average Yield 9.37% Total $7,282,920 11/2/89 slml invtr910 Page 3 WORK SESSION FOLLOW-UP 11/17/89 Page 1 TOPIC QUESTIONS FOLLOW-UP SOLUTIONS 8/1 BANNERS IN THE VILLAGE (request Slevin) 8/1 STREET ENTERTAINMENT 8/8 UTILITIES UNDERGROUNDING FOR ARTERIAL BUSINESS DISTRICT 8/8 WEST INTERMOUNTAIN ANNEXATION (request: Lapin) 8/15 VUCWD/TOU LAND CONTRACT 8/15 NO SMOKING ORDINANCE 9/5 CALL UP PROCEDURE FOR PEC AND DRB DECISIONS (request: Steinberg) 10/17 VUF FINANCIAL REPORT 11/7 ATHLETIC FIELD CULVERT (request: Steinberg) 11/7 SURVEY CREW BUDGET ITEM (request: Steinberg/Rose) 11/14 COUNCIL EMPLOYEE EVALUATIONS PETER: Arrange location and placement of permanent banner poles at any location other than Pepi's. PAM: No more rock 'n roll. Perhaps no more jazz? KRISTAN: Provide costs to individuals to convert to underground. Provide firm number for TOU's portion by budget time. Inventory all above- ground wiring. LARRY: Proceeding w/legal requirements for annexation. IRON: Contract in final stages of negotiation RON/SUSAN: Organize study group to examine voluntary options. LARRY: Work out wording to disallow the call up procedure far PEC and DRB decisions to be allowed without consensus. RON: Request financial report from VUF. STAN: Culvert is plugged. STAN/STEVE: Bring back survey crew issue before hiring. COUNCIL: These are to be completed and discussed at 11/21/89 WS. Have asked Ampersand for design for Lionshead east entry. Will explore with Ampersand alternative banner pole locations in Village. Peter checked with Ampersand, and they are working on it. Review meeting held September 20. Business survey being developed. Received letter from New Electric detailing costs for each property. Community Development will write letters to property owners for their response. Council will discuss when we have a response. Annexation map is being produced. Susan has completed research and submitted updated plats to Dan Corcoran. Discuss annexing East Vail Interstate. Larry and Jim Collins are working on contract. ',Group to include Safeway and other retail outlets in their scrutiny. Draft ordinance for public places other than restaurants. Resolution is being developed. Written. Audit is just being completed. Will clean out by Thanksgiving. Will discuss in December. TOPIC 11/14 PRE-QUALIFYING CONTRACTORS FOR VTRC (request: Rase) 11/14 STREETLIGHTS (request: Rose, Affeldt) 11/14 SNOWDUMP (request: Rose) 11/14 COLORADO SKI MUSEUM/VRA SPACE NEEDS (request: Affeldt/Rose} WORK SESSION FOLLOW-UP ON RON/STAN/LARRY: Develop procedure through interview and review process rather than deal with time restrictions caused by competitive bid process, based on profit percentages, open books, etc. Requires vote by Council to approve. STAN: Significant number of lights out at VTRC and on through Bridge Street. This is a good time of year to check throughout town. RON/STAN: If approval for relocation is received from VA, are we ready to proceed IMMEDIATELY? RON/LARRY/PETER/STAN: Review parking situation and its impact at UVI; review service industry under zoning code; affirm details of new leases to both VRA and the Ski Museum. 11/17/89 Page 2 FOLLOW-UP SOLUTIONS Will discuss in December. Inventory being done. Cannot be accomplished for this winter. Negotiations are proceeding. To be discussed with Council Nov. 28. 11/14 SWEEPING EAST VAIL BIKE PATH STAN: With snow now on road, gravel ends up on Done. (request: Affeldt, Rose) bicycle path, making traveling on path totally unsafe. /i 4 SAIL FEALTY ~EIVTAL I~ANAGENIENT, IIVCo November 1®, 1989 To: Vail Town Council Vail Bletropolltan Recreation D15trict Board Dear Council & Board members: I am writing concerning a recommendation for improvements to be made to the facilities at the Athletic/Soccer Field at the west end of the Vail Golf Course. ~y concern about this facility stems from my being a ngember of the newly formed General Recreation Committee, president of the Vail Rugby Club, a Vail business owner who is concerned about improving the quality of facilities available to people' work and vacation in Vail, and as a Vail property owner. Although the field itself has been very well maintained and is one of Colorado's finest athletic fields lack of facilities is very apparent. Ede would strongly urge the Council to appropriate funds for the construction of a building at the east end of the field which could provide bathroom facilities, shower and locker room facilities, and storage facilities. We request the V&1RD Board endorse the need for such a facillty and recommend to the Council that funds be appropriated to construct the facillty. Currently, the Soccer Field is very well utilized by the Vail Soccer Clubs (men and women), the Vail Rugby Club, the Lacrosse Club, soccer camps, recreation programs and by the general public. In fact, field time is scarce, which also supports the immediately need for another field at Donovan Park (I understand that this protect will be undertaken this spring?). The field !s also used by many other non-team or club individuals including Joggers, runners, ballplayers, etc. Soccer, rugby and lacrosse matches attract large number of spectators, both locals and tourists. However, the only available facility is a "port-a- John" that quite frankly, is disgusting. The Vail Rugby Club and the Soccer Club routinely host foreign touring clubs in Vail. On numerous occasions, the touring rugby clubs have noted to me that Vail is an incredible resort and that our field is probably the most scenic and memorable they have ever seen, but the lack of any facilities is obvious. Fred Ammer of the Pepi's Soccer team has told me of similar experiences with touring soccer clubs. 302 Easi Gore Creek Drive n Uail, Colorado 81657 ~ 303 476-8800 ~ 800 627 VAIL ~ 303 476-8671 FAX ,1. To conclude, the Soccer field is utilized by large number of recreational users. Vail is a community which thrives on recreation, both for locals and tourists alike. With recent improvements and expenditures made on protects like Ford Park, the new tennis fa cility, and monies spent on studies to consider the pool protect and the village w alk path, it seems that funds are available. This is a worthwhile protect which could also be utilized as a public restrooms for bikers and golfers. The present situation which often has field users changing in the parking lots, and users and spectators using unsightly and unsanitary toilet facilit ies is unnecessary. We strongly urge to consider this matter for construction in the spring of 1 990. Thank you for your attention of this recommendation. We sincerely hope that you will give this matter serious consideration. Sincerely, ~~~ C~~ Bart Cuomo NOV 1 61989 EAGLE COUNTY SCHOOL DISTRICT ~E S®~ P.O. BOX 740 ~ EAGLE, COLORADO 81631 ~ (303) 328-6321 OR 949-5310 PATRICIA C. CONRAN SUPERINTENDENT November 8, 1989 'g'O: Mail 'g'own Council ~~ FitO1VI: Bat Conran 1ZE: 'hank You! ! ! ®n behalf of the students, staff; and Board members of the Eagle County School District, 1 would like to thank you for your role in helping to pass the November 7 Bond and Budget vote. We attribute the success of this election to the support and encouragement from the individuals and groups that worked so hard during the past few months to ensure a positive vote. You should feel very good about your role in helping to ensure the continued quality education that students in the Eagle County School District will be receiving. Our hats off to you!! shk c: Board of Education '~I~l~a Co~°t~n~ Co~c~ominiu Associatgorn RECD NOV 1 5 ~98~ P.O. Box 1012 © Vail, Colorado 81658-1012 November 13, 1989 Vail Town Council Town of Vail 75 South Frontage Road Vail, CO 81657 Dear Town Council, Last winter, a situation took place at the Villa Cortina in which a local developer purchased a unit in the building and then wanted to do a complete renovation two weeks prior to the World Championships. In the past, the Office of Community Development had a policy which required Condo- minium Association approval prior to the issuing of a Building Permit. This policy was challenged on the basis that it was not in the form of a Town Ordinance. A build- ing permit was issued without Association approval which caused the following results...loss of income to two home- owners because the construction noise made their units un- rentable, threat of a lawsuit from a renter and approxi- mately $2000.00 worth of building damage caused by the con- tractor. I am writing you to see if you would consider enacting an ordinance which would require Condominium Association approval prior to the issuing of a Building Permit. Such an ordinance would promote a spirit of coop- eration bettleen developer and Association and would help insure a peaceful stay for the Vail guest. I realize that you may not be able to consider this matter until after the election. If you need me to appear before the Council to discuss this, please let me know. S' cere y, Rick Haltermann Managing Agent Managing Agent: Burke Management Works, Ltd. (303) 476-7133 o Pager: 949-7294 O ~OWn 75 south frontage road vail, Colorado 81657 (303) 479-2138 (303)479-2139 November 14, 1989 Mr. Johannes Faessler Sonnenalp Hotel 20 Vail Road Vail, Colorado 81657 office of community development Re: Removal of trees along Town of Vail Stream Tract Dear Johannes, This letter is written in order to give you official notice that if you wish to maintain or remove any vegetation along the Town of Vail Stream Tract, approval from the Town of Vail must be obtained before any work is started. It is inappropriate for an adjacent property to go onto Town of Vail property and remove any vegetation without first obtaining permission from the Town. We hope you can see the reasonableness of this position. We are simply requiring that as property owners the town be informed of and have the opportunity to review, approve, and or deny, an adjacent property owner's request to remove community owned trees. The Town of Vail Design Review Guidelines state specifically that removal of vegetation must receive design approval either from the staff or Design Review Board. I have listed these sections of the code below for your benefit: 18.54.030 Design Approval A. No person shall commence removal of vegetation, site preparation, building construction or demolition, dumping of material upon a site, sign erection, exterior alteration or enlargement of an existing structure, paving, fencing or other improvements of open space within the corporate limits of the Town of Vail unless design approval has been granted as prescribed in this chapter. The addition of plant materials to existing landscaping, gardening and landscape maintenance shall be exempt from this provision. d B. It shall be a violation of this chapter and the building permit for any person to commence, continue or complete work that has not received design approval as prescribed in this chapter and or is not in conformity with the plans approved and authorized by the zoning administrator and or DRB and the chief building official. 18.54.050. B. 3. Removal of tress, shrubs, and other native vegetation shall be limited to removal of those essential for development of the site or those identified as diseased. We appreciate adjacent property owners who are willing to water and do the minimal maintenance to keep the landscaping looking healthy. However, the cutting down of trees is not supported by the Town of Vail unless there are special considerations which make the removal of the vegetation the most prudent action. I must emphasize that if you wish to do any additional maintenance of landscaping on Town of Vail property, you first obtain the Town's permission for the work. You may contact me at 479-2138 if you wish to set up a meeting to discuss this issue. Thank you for your cooperation. Sincerely, ~' A. Pe r Patten Jr. ' Director of Commu t Development PP:ak cc: Ron Phillips Larry Eskwith Ken Hughey Vail Town Council ~. IOWn 0 75 south frontage road nail, Colorado 81657 (303)479-2138 (303)479-2139 November 14, 1989 Mr. Craig Granlund Village Center Association 124 Willow Bridge Road Vail, Colorado 81657 office of community development Re: Removal of trees along Town of Vail Stream Tract Dear Craig, I am writing this letter in response to your October 23rd letter concerning the removal of cottonwood trees from Town of Vail Stream Tract. First, it is important to emphasize that this issue did not come up due to the recent publicity over the Stream Tract. It is inappropriate for an adjacent property owner to go on to Town of Vail property and remove any vegetation without first obtaining permission from the Town. We hope you can see the reasonableness of this position. We are simply requiring that as property owners, the Town be informed of and have the opportunity to review, approve, and/or deny, an adjacent property owner's request to remove community owned trees. The Town of Vail Design Review Guidelines state specifically that removal of vegetation must receive design approval either from the staff or Design Review Board, I have listed these sections of the code below for your benefit: 18.54.030 Design approval. A. No person shall commence removal of vegetation, site preparation, building construction or demolition, dumping of material upon a site, sign erection, exterior alteration or enlargement of an existing structure, paving, fencing or other improvements of open space within the corporate limits of the Town of Vail unless design approval has been granted as prescribed in this chapter. The addition of plant materials to existing landscaping, gardening and landscape maintenance shall be exempt from this provision. B. It shall be a violation of this chapter and the Y r building permit for any person to commence, continue or complete work that has not received design approval as prescribed in this chapter and or is not in conformity with the plans approved and authorized by the zoning administrator and or DRB and the chief building official. 18.54.050 B. 3. Removal of trees, shrubs, and other native vegetation shall be limited to removal of those essential for development of the site or those identified as diseased. In your letter, you indicate that the Town of Vail Stream Tract has always been maintained by Village Center. The staff researched the Village Center file and could find no written agreement concerning maintenance of the Stream Tract adjacent to your property. We also believe that there is a vast difference between merely maintaining the existing vegetation by watering and mowing, versus cutting down trees. Once again, we hope you can see the reasonableness of this distinction. In order to avoid any further problems, the Town of Vail will require that you receive permission from the Town to make any changes to landscaping along the Town of Vail Stream Tract. We appreciate adjacent property owners who are willing to water and do the minimal pruning to keep the landscaping looking healthy. However, the cutting down of trees is not supported by the Town of Vail unless there are special considerations which make the removal of the vegetation the most prudent action. This letter shall serve as official notice to the Center Condominium, that Town of Vail permission for any removal or maintenance of landscaping on may contact me at 479-2138 if you wish to set up this issue. Thank you for your cooperation. Development cc: Ron Phillips Larry Eskwith Ken Hughey Vail Town Council owners of the Village is necessary to obtain town property. You a meeting to discuss KP/PP:lr November 6, 1989 ~LOxA~'s 6~TER ~ R~C'~ NOV 1 6 1989 Although Colorado's high topography generates most of the renewable water for Southwestern states, Colorado's water development costs (tap fees) are the highest in the nation. Recent Dome Builder Association testimony before the Colorado Legislative Interim Water Committee indicates Metro Denver's ~~rater and sewer tap fees average over $7,000; while Arizona cities average $1,106; Utah $1,850; California $2,646; New Mexico $847; and Texas $1,153. This inordinate drag on Colorado's economy is largely due to the state's historic refusal to modernize its water management practices. Colorado is the only Western state that has never developed a state crater plan to serve as a guide for local, state, and federal decisions. It is also the only state that still relies exclusively on a confrontational, court based system for allocating its renewable surface crater. This unplanned, highly legalistic climate has created a Mecca for 70•~ of our nation's water attorneys. Without organized water planning, the feds tell Colorado what it can't do, and the down river states reap the benefits of our costly water development grid lock. The Two Forks Dam debacle is the-best recent example of what can happen in a planning vacuum. Although there are less costly water alternatives that could actually enhance Colorado's overall environment, a small group of powerful, non-elected, water officials were able to mislead most of the state's water community into supporting the most expensive, environmentally damaging option. The better engineered, less damaging alternatives were systematically screened from the environmental studies because of political pressure and overblo~,m "institutional constraints". Colorado's Water Resources and Power Development Authority has only added to this confusion by spending $millions of state funds on low priority, unrelated water studies that are often "politically engineered" to suit the biases of sponsoring water districts. To avoid political controversy, the Authority makes no attempt to determine how various water district proposals help or hurt Colorado's overall water development situation. Colorado's water management is largely controlled by a close knit fraternity of appointed water board and conservancy district officials who are united in preserving the confused status quo. These powerful, attorney dominated officials serve indefinitely, as they are exempt from Colorado election laws that apply to all other special districts. Instead of piecemeal crutching of state water laws, basic legislative changes are urgently required to modernize management of Colorado's water. Hopefully, excessive water development costs and the wasteful Two Forks experience will spur elected officials into long overdue corrective action for the people of Colorado. Allen D. (Dave) Miller Natural Energy Resources Company P.O. Box 567, Palmer Lake, CO. 80133 (719)481-2003 Tuesday, October 24. 1989 yIaurice L. Hickey, Publisher Chuck Green. Editor Robert W. Ritter, Executive Editor Carl Miller, Editorial Page Editor Gay Cook, :~fanagng Editor William H. Hornby, Senior Editor William Dean Singleton, Chairman of the Board `There is no hope for the satisfied man' - F.G. Bonfils, Publisher, 1895-1933 ::Two ~Zealities about Two Forks T'S TIME the supporters of damming Two Forks face Two Realities, so that we can get on with addressing our real water needs. `" Two Forks dam is not going to be built. President Bush and the Envirgnmental Protection Agency are not going to ap- prove aproject that sacrifices the envi- ronment, isn't needed and has alterna- tives that are less damaging to the environment and cheaper. The people of Denver and Colorado have said repeated- ly they don't support this project - in ~%ublic opinion polls, in letters and by their overwhelming testimony at public hearings. And they will not support any ~a~tempt to raise their water rates or tax- es to subsidize an unneeded project that ctyuld cost up to $1 billion of their money. `~-Two Forks should not be built. It's not needed -the growth projections used to justify it are already way off the mark. The environmental risks are too great - not just for the wildlife that depend on the river, but also for the people of.the metro 'area -from more urban sprawl and air ~igllution. Colorado jobs. and businesses are hurt every time a scenic canyon or a ,gold medal trout stream is sacrificed, be- ~cause that chips away at why people want to live, work, visit or do business in Colo- rado. Vie need a better approach to wa- ter. "' We need a plan for water that is jointly developed by all of those affected by wa- ter decisions -the Front Range where most of the people are, the West Slope :: where much of the water is; and the East- JIM HELMS ern Plains where agriculture has a great need for water. It's much cheaper to use the water and water facilities we already have in a more efficient way -through conserva- tion, recycling and exchanges -than it is to build more costly dams. One place to start is by setting strong water conserva- tion standards for all new development in the metro area. Money that has been accumulated for Two Forks would be better spent on re- placin~ sprinkler systems and plumbing fixtures that leak or waste water. We need to make sure that the people who decide water policy, and set the wa- ter rates, are accountable to the voters for the decisions they make, and not iso- lated by appointment. ' There is something wrong when a wa- ter board that no one elected can con- demn land and force people from their homes, threaten the environment with a damaging and costly project, squander $40,000,000 of the people's money trying to justify a project the public doesn't want or need, and decide who will and won't get water and what people will have to pay for it. With the demise of Two Forks dam, we have the opportunity to address our fu- ture water needs without sacrificing the environment. Jim Nelms is an Adams County commissioner October 1989 DRAFT STATE OF COLORADO A Bill For An Act concerning a statutory directive for the State Engineer to develop a state water plan, and for the dissolution of the Colorado Water Resources and Power Development Authority. Bill Summary Requires the State Engineer to develop a state water plan within certain guidelines. Requires the dissolution of the Colorado Water Resources and Power Development Authority. Assigns the Authority's statutory water financing function to the Colorado Capital Finance Corporation, and its water planning, development, and waste water functions to the State Engineer. Establishes transition procedures and authorizes the transfer of moneys from the Authority to the State Engineer. Be it enacted by the General Assembly of the State of Colorado: State Water Plan Within one year from date of this act, the State Engineer shall develop a preliminary state water plan for consideration and approval by the executive and legislative branches. The plan shall be developed under the following guidelines: 1. A State Water Plan Steering Committee shall be formed to advise the State Engineer in developing the plan. 2. The State Engineer shall serve as the committee chairman, and eight additional Steering Committee members shall be recommended by the chairman and approved by the governor for an indefinite period of service. 3. One committee member shall be appointed from each of the following areas of experience: academic, legal, natural resource management, engineering, finance, public administration, private sector water development, and civic organization. 4. The plan shall be developed as an advisory guide for 2 public and private decision makers at the local, state, and federal level who are concerned with the optimum use and development of Colorado's water resources. 5. The preliminary state water plan shall include, as a minimum, an inventory of the state's total water resources, a draft state water policy, an identification of areas that need further study and/or legislation to improve and update the plan. Dissolution of Authority and Assignment of Responsibilities and Funding 1. The Colorado Water Resources and Power Development Authority shall be statutorily dissolved with this act. 2. The Authority's water financing function shall be assigned to the Colorado Capital Finance Corporation, to be used if and when the State Engineer and the Colorado Water Conservation Board agree that state debt financing is advisable for Colorado water development. 3. The Authority's residual water planning, development, and waste water responsibilities shall be consolidated under the State Engineer. 4. The Authority's existing project acquisition and maintenance fund shall be transferred to the State Engineer. 5. The State Engineer's budget shall be revised to cover the funds transferred and its newly expanded responsibility for state water planning. NOTE: Colorado has three state agencies with overlapping responsibilities for water planning and development. Because of Colorado's traditional political. divisiveness between basins and interest groups, all three of these .agencies have avoided the task of developing a state water plan or policy. Although Colorado's high topography generates much of the renewable water for the West, it is the only Western state that does not have statewide water planning. Colorado's exclusive reliance on its original court based appropriation doctrine has created a confused -- and confrontational climate where water development costs (tap fees) and lead times are some of the highest in the West. Water planning legislation, similar to this draft, is urgently required as the key first modernizing step toward optimizing Colorado's water management for the greater good and least enviro-economic cost. Colorado's recent piecemeal legislation to improve state water management is proving to be counterproductive without the perspective of a state water plan. _ ~~~~C ~NClNE~t~ING, INc• October 23, 1989 Governor Roy Romer Executive Chambers 1360 State Capitol Denver, Colorado 80203-1792 The Honorable Jeanne Faatz, Chair Interim Committee on Independent Governmental Authorities State Capitol Building Denver, Colorado 80203 The Honorable Tilman Bishop, Chair Interim Committee on Water State Capitol Building Denver, Colorado 80203 WRC File: 1662/14 Re: Colorado Water Resources and Power Development Authority Study Dear Governor Romer, Representative Faatz and Senator Bishop: On three separate occasions I provided written input to the Colorado Water Resources and Power Development Authority regarding my concerns related to the Authority's Upper Gunnison-Uncompahgre Basin Phase 1 - Feasibility Study. Copies of these letters are enclosed for your files. I received no response to my first two letters, and only a token response (or no response) to the third. A copy of the Authority's response to my third letter is also enclosed for your files. After a great deal of frustration in dealing directly with the Authority, I have decided to bring this matter to your attention as our elected officials. On numerous occasions, the thought of dropping this matter crossed my mind, but after serious consideration I kept reaching the same conclusion that, as a responsible citizen, I must bring this matter to the attention of someone if we are to maintain a responsible government. My fundamental concern is that when a report such as the one for the Gunnison Study is published it must contain the best factual information available at the time of publication. Clearly the subject report did not meet this criteria despite the fact that my concerns were brought to the Authority's attention in a timely manner shortly after the draft copy of the report was printed. CONSULTING ENGiNE~RS 1660 SOUTH AL910N STRE_T • SUITE 600 ^ DENVER. COLORA00 80222 • (303) 757.8513 • FAX (303) 758.3208 WRC File: 1662/14 Page 2 As an engineer with over 23 years of experience in the field of water resources engineering, I cannot accept that one cost estimate fora siphon should be more than 3.8 times ($43.9 million versus X168.8 million) another cost estimate for essentially the same project component. I will accept differences up to 10 or ZOn, but a figure over 3800 is totally unacceptable. As pe r provisions of CRS Ti tI e 37, Arti c1 e 95, the Authori ty woul d iss~!e its bonds- to finance water projects. .The bonds will be paid for solely from re~renues generated from trie said water projects. Through such a financing mechanism, it is assumed that the State will benefit from lotiver interest rate bonds issued. As you can see these savings will disappear rather quickly if major financial errors are made by the project proponents and not corrected in a timely manner. Further, it would make the project look more costly when the opposite is true, and thus make the project financing more difficult. The erroneous cost estimate by the Authority raises a fundamental question about the accuracy of the work performed by the Authority. Frankly, I am beginning to wonder if in fact "political engineering" has arrived in Colorado. The engineering profession has served the public interest very well by developing and providing facts that are used as the basis for making sound decisions. We must remain vigilant in seeing that these facts are nat compromised. I wo ul d 1 i ke to request that you undertake an i nvesti gati on of thi s serious matter. I would be pleased to meet with you or with anyone undertaking the investigation to answer any questions they might have. Should you have any need for additional information at this time please let me know. Thank you. Very truly yours, ___ WRC ENGINEERING, INC. ~. ~ - ~~ ~~ A. S. Andrews, P.E. President Enclosures ASA/ j ed 4 DISTRIBUTION LIST - PUBLIC WORKS PRIORITY LIST BRIAN ANDERSON STEVE WARWICK PETE BURNETT DICK DURAN CAROLINE FISHER ANNIE FOX JOHN GALLEGOS PETER PATTEN FILE TOWN COUNCIL GARY MURRAIN JOE NORRIS MIKE ROSE TODD SCROLL LEO VASQUEZ CHARLIE WICK PAT DODSON ERNST GLATZLE SKIP GORDON GREG HALL SUSIE HERVERT JIM HOZA KEN HUGHEY JOE KOCHERA HANK LOVATO CINDY VAN HOOSE- SORENSEN MEMORANDUM TO: RON PHILLIPS, TOWN MANAGER FROM: STAN BERRYMAN, DIRECTOR, PUBLIC WORKS/TRANSPORTATION ~~ DATE: NOVEMBER 14, 1989 RE: PUBLIC WORKS PRIORITY LIST FOR THE WEEK OF NOVEMBER 13 - 17, 1989 STREETS AND ROADS A. 1. Clean out culvert at Softball Field. 2. Continue installation of X-Mas lights. 3. Inventory street lights for electricians. 4. Provide (3) TOV trucks, (1) snowplow and volunteer B. drivers for Vail #1 Parade. 5. Remove gates for Vail #1 Parade. 6. Install catch basin/culvert at 425 Forest Road. 7. Pickup gravel and culvert pipe from Booth Creek Ditch. 8. Complete installation of heating system at the Bus Wash Facility. 9. Replace totem pole at Ice Arena. 10. Install additional pedestrian signs in Village and Lionshead. 11. Install 0°No Overnight Parking°1 signs at Ford Park Parking Lod and °°Free Outlying Parking1° signs at Ford Park Parking Lot and the Frontage Road. 1. Install grease reel at PW Bay. ..y PUBLIC 6dORKS PRIORITY LIST PAGE 2 "PARKING STRUCTURE A. 1. Replace door at Main Vail Fire Station. 2. Install vestibule at LTRC Auxiliary Building 3. Train booth attendants on Monday 11/20. B. 1. Design steel support structure for VTRC. CARPENTERS A. 1. Make sign for bus departments °1West Vail South Bus Boards Here°0 . 2. Construct and install bus stop posts. 3. Construct dividers for PW file cabinet. 4 Build directory signage covers for VTRC. 5. Sandblast signs for VTRC. 6. Construct WV bus shelter when approved by DRB. B. 1. Install partitions at PD Detective area. 2. Investigate installing sign at °'children mural°° bus stop. 3. Install window in electrical room. ELECTRICIANS A. 1. Begin installation of power for X-mas lights. 2. Replace recess lighting trim at LH Booths. 3. Install new 3 phase panel with 100 amp main and 24 circuits at Seibert Circle. 4. Repair exhaust motor at VTRC. 5. Install lights at Ford Amphitheater and PW Admin. Building. 6. Replace baseboard heaters in sprinkler room. 7. Install conduit at Ford Park. 8. Change out directional light at Main Vail ticket booths. .~ PUBLIC WORKS PRIORITY LIST PAGE 3 ELECTRICIAATS (font°d) B. 1. Install additional lighting at 1st level entrance ski storage. 2. Install light in coatroom in PW Admin. Bldg. 3. Perform various electrical work at Ice Arenao a. Install new wire moulding and switch in managers office. b. Move low voltage light switches from office to zamboni room. c. Move welding plug to new location and add plug-in strip. d. Research information on plug-in strip (sockets) for special event power. e. Add fluorescent light fixture in boiler area. f. Replace 2 ballasts in locker rooms. g. Change EM light ballasts. h. Add outlets in Dennis°s new office. 4. Repair outlet near little copier at Municipal Building - see Tracy. 5. Install electrical outlet for printer at Rec Department. 6. Perform maintenance jobs at Librarye a. Unhook stove in Community Room b. Change several ballasts 7. Install power supply for Bus Wash Facility. 8. Check exhaust fans at both structures. SB/slh