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HomeMy WebLinkAbout2024-08-06 Agenda and Supporting Documentation Town Council Afternoon Meeting1.2025 Budget Retreat (12:30pm) 1.1 2025 Budget Retreat (12:30pm)120 min. Provide feedback to staff as we begin the 2025 Budget process. Presenter(s): Carlie Smith, Finance Director Background: Please see attached memo. 2.Break (2:30pm) 3.Afternoon Regular Meeting will Reconvene at 3:30pm, after the VLMD meeting, in the Town Council Chambers. 4.Call to Order (3:30pm) 5.Presentation/Discussion (3:30pm) 5.1 Energy Performance Contract - Investment Grade Audit (3:30pm) 15 min. Listen to presentation and provide feedback. Presenter(s): Kristen Bertuglia, Environmental Sustainability Director and Cameron Millard, Clean Energy Specialist Background: The purpose of this agenda item is to present for approval the contract for the Energy Performance Contract (EPC) for the completion of the Investment Grade Audit for the town and Vail Recreation District Facilities. 5.2 Gore Creek Promenade Update (3:45pm) 25 min. Listen to presentation and provide feedback. Presenter(s): Gregg Barrie, Senior Landscape Architect Background: The Gore Creek Promenade Park, located along Gore Creek in Vail Village, has been in need of repairs and VAIL TOWN COUNCIL MEETING Afternoon Session Agenda Town Council Chambers and virtually by Zoom. Zoom Meeting Link: https://vail.zoom.us/webinar/register/WN_DBTnWuldRLW5qM1bKoDA_A 12:30 PM August 6, 2024 Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. 240806 Financing and Reserve Outlook Budget Preview PPT25 2025 Budget Preview (V2) EPC Memo 8-06-2024 EPC Presentation Town of Vail Energy Performance Contracting Services - McKinstry Response 1 improvements for several years. Some features, including the turf area are showing significant wear. The purpose of this agenda item is to discuss a design development process for a Gore Creek Promenade Renewal project. 6.DRB/PEC (4:10pm) 6.1 DRB/PEC Update (5 min.) 7.Information Update (4:15pm) 7.1 July 2024 Revenue Update 8.Matters from Mayor, Council, Town Manager and Committee Reports (4:15pm) 8.1 Matters from Mayor, Council and Committee Reports (15 min.) 8.2 Town Manager Report (5 min.) 8.3 Council Matters and Status Update 9.Executive Session (4:35pm) (15 min.) Executive Session pursuant to: 1. C. R.S. § 24-6-402(4)(b)(e) - to have a conference with the Town Attorney to receive legal advice on specific legal questions; and to determine positions, develop a negotiating strategy and instruct negotiators regarding Lease between the Town of Vail and Children’s Garden of Learning, dated October 21, 2021. 10.Recess 4:50pm (estimated) Gore Creek Promenade Renewal TC Memo 8-6-24 Gore Creek Promenade PP 8-6-24 DRB Results 7-17-24 PEC Results 7-22-24 08-06-2024 Revenue Update TM Update 08-06-24 2024-08-06 Council Matters Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vail.gov. All town council meetings will be streamed live by High Five Access Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2136 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 2 AGENDA ITEM NO. 1.1 Item Cover Page DATE:August 6, 2024 TIME:120 min. SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Presentation/Discussion AGENDA SECTION:2025 Budget Retreat (12:30pm) SUBJECT:2025 Budget Retreat (12:30pm) SUGGESTED ACTION:Provide feedback to staff as we begin the 2025 Budget process. PRESENTER(S):Carlie Smith, Finance Director VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 240806 Financing and Reserve Outlook Budget Preview PPT25 2025 Budget Preview 3 TO: Vail Town Council FROM: Town Manager Finance Department DATE: August 6,2024 SUBJECT: Reserves Outlook with Project Financing Options I. SUMMARY Reserve projections are a foundational part of the budget process. Prior to the budget preview, staff provided Council with updated reserve projections that consider funding options for Timber Ridge and Dobson. II. BACKGROUND Within the town’s main available spending funds (General Fund, Capital Projects Fund, Real Estate Transfer Tax Fund, and Housing Fund), the town has built up healthy reserves, allowing the town to save and pay for many current capital projects. At the end of 2023, reserves totaled $161.9M, with $139.9M of that available to spend and above the reserve minimum. $93.4M of those reserves are planned to be utilized during 2024. Reserves will be used to fund the following: - Booth Heights-in escrow with the courts ($18.8M) - Data Center equipment replacement at end of life ($1.75M) - The roundabout lighting project at the main Vail roundabout ($1.2M) - TOV employee rental purchases ($3.2M) - Mobility Hub Expansion ($750K) - Fire Truck replacements ($1.7M) - CDOT parcel aquistions ($5.9M) - Predevelopment costs of West Middle Creek ($3.9M) - Underground utility lines ($3.8M) - Timber Ridge redevelopment ($30.0M) Reserves will need to be used for Timber Ridge and/or Dobson, which are slated to begin in 2024/2025. Although both projects will be reimbursed over time, current expenditures will leave a gap in the funding and require upfront cash funding from the Town. Dobson: The total cost of the Dobsn renovation is estimated to be $55.4M, with construction beginning in 2025. The Vail Reinvestment Authority has approximately $19.1M of current available funds for this project. The VRD will also be contributing $3.0M-$5.0M to the project, 4 Town of Vail Page 2 leaving a $30.3M gap requiring the utilization of reverse. This will be reimbursed by the Vail Reinvestment Authority at approximately $5.0M per year 2026-2030. Timber Ridge Redevelopment: This project's total cost is $40.5M. The Town is contributing $40.5M of cash plus the land (cost/book value of $6.1M) to the project. Housing Fund reserves of $10.5M are currently available, leaving a gap funding of $30.0M. A total of $40.9M will be reimbursed to the Town, but this will be dependent on the sales of units. III. DISCUSSION Staff has worked with the Town’s financial advisors, HillTop Securities, to review potential financing options for both the redevelopment of Dobson and Timber Ridge Staff has provided four funding options for Council’s consideration: 1. Cash Fund Timber Ridge redevelopment and Dobson projects 2. $30.0M COP for Timber Ridge 3. $30.0M COP for Dobson (TOV) 4. $24.7M COP for Dobson (VRA) In evaluating each funding scenario, Council should take into consideration:  Economic Risks going into 2025 (election year, current visitation trends, interest rate risk)  Level of flexibility wanted for new unfunded projects or programs  Reserve Policy (Approximately $22.0M) The attached PowerPoint reviews the above options for funding Dobson and Timber Ridge and reviews the benefits and potential drawbacks of each option. III. STAFF RECOMMENDATION & COUNCIL FEEDBACK Staff recommends the Vail Reinvestment Authority finance the Dobson renovation with a $24.7M COP. This option would cost a total of $3.0M of interest expense but would still leave some flexibility in reserves to fund other council strategic plan priorities. This option does not impact the town’s debt capacity, and if VRA revenues over the next five years are higher than anticipated, the VRA could fund the $3.0M of interest expense as well. Staff will continue to evaluate financing needs and reserve levels before construction begins. 1) Does Council agree with this approach? 5 Financing Update: Timber Ridge & Dobson Town Council | August 6, 2025 6 Town Council |   Finance   |   08/06/24 FINANCING UPDATE | Funding Needs ReimbursementGap Current Allocated  Revenues Total   CostProject Anticipated to be  reimbursed in full  2025‐2030 with VRA  revenues $30.3M$25.1M (VRA  Reserves/VRD) $55.4MDobson $40.5M to be  reimbursed by unit  sales 2026/2027 $30.0M$10.5M (Housing  Fund reserves) $40.5MTimber Ridge  Redevelopment $60.3M$95.9MTotal:  7 Town Council |   Finance   |   08/06/24 FINANCING UPDATE | Funding Options Funding Options: Option 1: Cash Fund Timber Ridge redevelopment and Dobson projects Option 2:$30.0M COP for  Timber Ridge Option 3: $30.0M COP for  Dobson (TOV) Options 4: $24.7M COP for Dobson (VRA) When evaluating each option, Council should take into consideration: •Economic risks going into 2025 (election year, visitation trends, interest  rate risk) •Level of flexibility desired for  new and unfunded projects or programs •Reserve  Policy (Approximately $22.0M) 8 FINANCING UPDATE | Financing Comparison Dobson‐VRADobson‐TOVTimber Ridge $24.7M ($16.1M CPF)$30.6M$30.1MLoan amount 7 year Loan10 Year  Term; Prepayment  available at 7 years 10 Year ‐Term;3 year Call Maturity 4.35%*3.91%*6.0%Interest Rate $3,016,116$7,259,400$5,407,967Minimum Interest Rate  Cost $3,016,116$9,213,650$13,051,967Maximum Interest Rate  Cost CPF or VRA (if excess  revenue) CPF or VRA (if excess revenue)Housing FundInterest Funded by N/ACan pay off remaining balance  beginning December 2030 Callable December 2027Prepayment/Call  option: Dobson propertyDobson propertyUnidentified but would  most likely need  multiple  assets/properties. Collateral Align with Dobson start  date Align with Dobson start dateEarliest December 2024Closing Date *Includes 25 bps for  interest rate  risk  9 Town Council |   Finance   |   1/5/2021 FINANCING UPDATE | Considerations 2024/2025  Reserves   Utilized ConsiderationsOptions $60.0M ($30.M for   Dobson/ $30.0M for   TR) No interest cost; Fund balances are spent down;  reliant on TR construction schedule/sales to  reimburse reserves; minimal flexibility for  new  projects in 2024/2025 1. Cash $30.0M (for Dobson) Reliant on construction schedule/sales for   callable debt option; $5.0M of interest; higher  interest rate  risk due to limited buyer market;  2. Timber  Ridge COP $30.0M (for TR) Offers highest reserves for  other projects but  highest interest cost; no risk due to TR sales;  reliant on property tax revenues; uses $30M of  reserves up front 3. Dobson:  TOV  COP $46.0M ($30.0M for  TR/ $16.0M for  Dobson) Minimal interest cost; adds more stability to  reserve balances in 2025/2026; reliant on  property tax revenues; off Town’s  balance sheet 4. Dobson:  VRA COP 10 Town Council |   Finance   |   08/06/24 FINANCING UPDATE | Reserve Impacts Assumptions across all scenarios:  Revenues •Lionsridge land purchase option is exercised at the end of 2024 ($5.0M) •5% increase in VRA property tax revenues during assessment years •All Timber Ridge units sell‐$36.8M in 2026; 12.3M in 2027 Expenditures •Adding $5.0M to parking structure “reserve” annually (2025‐2029) •Add to reserve to save and pay for portion of future redevelopment of  parking structures •Cash purchase of 43 Timber Ridge units ($24.5M) •$2.0M contribution to Habitat for  Humanity for Timber Ridge •Projections do not include W. Middle Creek 11 FINANCING UPDATE | Reserves Impacts 60.60 90.60 60.60 60.60 30.8 59.8 62.5 45.645.9 44.8 72.0 55.5 67.5 62.2 88.7 71.673.7 68.4 88.8 71.5 $0.0 $5.4 $7.3 $3.0 ‐  10  20  30  40  50  60  70  80  90  100 1: Cash Fund 2: TR COP 3: Dobson: TOV COP 4: Dobson: VRA COP Mi l l i o n s 2024 2025 2026 2027 2028 Reserve min ($22.0M)Min Interest Cost Combined Fund Balance Total: General Fund, Capital Projects Fund, Housing Fund 12 FINANCING UPDATE | Reserves Impacts 130.0M 130.3M 130.0M 130.0M 60.6M 90.6M 60.6M 60.6M 30.8M 59.8M 62.5M 45.6M 33.6M 32.5M 59.7M 43.3M 55.3M 50.0M 76.5M 59.3M61.4M 56.1M 76.5M 59.3M 0.0M 5.4M 7.3M 3.0M 0M  20M  40M  60M  80M  100M  120M  140M 1: Cash Fund 2: TR COP 3: Dobson: TOV COP 4: Dobson: VRA COP 2023 2024 2025 2026 2027 2028  Reserve min ($22.0M) Min Interest Cost Combined Fund Balance Total: General Fund, Capital Projects Fund, Housing Fund with 75% of  TR Sales 13 Town Council |   Finance   |   08/06/24 FINANCING UPDATE | Unfunded List Unfunded Projects  •West  Middle Creek Housing Development •75 S. Frontage Rd. (Municipal Building) •West  Vail  Master Plan Outcomes •Development of CDOT East Vail  housing parcel •CDOT Eagle ‐Vail  parcel (partnership with other municipalities) •Children’s Garden of Learning Long‐term Permanent  Location •Parking  Structure Redevelopment (study currently being done) 14 Town Council |   Finance   |   08/06/24 Request from Council: •Does Council support financing  Dobson through the VRA?  •Staff will continue to monitor  reserves and VRA revenues as  we get closer to construction  date  15 Town Council |   Finance   |   1/5/2021 FINANCING UPDATE | Considerations 2024/2025  Reserves   Utilized ConsiderationsOptions $60.0M ($30.M for   Dobson/ $30.0M for   TR) No interest cost; Fund balances are spent down;  reliant on TR construction schedule/sales to  reimburse reserves; minimal flexibility for  new  projects in 2024/2025 1. Cash $30.0M (for Dobson) Reliant on construction schedule/sales for   callable debt option; $5.0M of interest; higher  interest rate  risk due to limited buyer market;  2. Timber  Ridge COP $30.0M (for TR) Offers highest reserves for  other projects but  highest interest cost; no risk due to TR sales;  reliant on property tax revenues; uses $30M of  reserves up front 3. Dobson:  TOV  COP $46.0M ($30.0M for  TR/ $16.0M for  Dobson) Minimal interest cost; adds more stability to  reserve balances in 2025/2026; reliant on  property tax revenues; off Town’s  balance sheet 4. Dobson:  VRA COP 16 2025 BUDGET PREVIEW FINANCE | August 6, 2024 17 2 BUDGET PREVIEW | Agenda Town of Vail   |   Finance   |   08/06/24 • Budget Philosophies/Timeline • Strategic Priorities • Revenue Assumptions • Reserves • Operating Expenditures • Capital Plan • Vail Reinvestment Authority- Dobson 18 4 BUDGET PREVIEW | Strategic Plan Town of Vail   |   Finance   |   08/06/24 •Create a strong  community and create affordable housing  opportunities •Support our Workforce •Provide an Authentic Vail  Experience •Transportation •Environmental Sustainability 19 5 BUDGET PREVIEW | Timeline Town of Vail   |   Finance   |   08/06/24 De c No v Oc t Se p Au g Budget Meeting XCouncil Retreat XVLMD Operating Plan Review XCapital Budget Discussion XCompensation & Benefits Discussion XDraft of Town  Manager 2025 Budget XFirst Reading  of 2025 Town  Manager Budget XVLMD Budget Resolution XSecond Reading of 2025 Town  Manager Budget XVRA Budget Resolution 20 6 BUDGET PREVIEW | Economic Outlook Town of Vail   |   Finance   |   08/06/24 Economic Outlook •Election year •Inflation showing signs of easing, with CPI decreasing 0.1% in June; 3.0%  rate  year over year •Core CPI at 2.6% (lowest in over three years) but above Fed’s 2% goal.  •Federal Reserve may lower rates  before the end of 2024 •Milder consumer spending growth, slower wage increases •Home prices continue to rise 21 7 BUDGET PREVIEW | Economic Outlook Town of Vail   |   Finance   |   08/06/24 Local Economic Outlook TOTAL( General/Housing) YTD sales tax collections (through June) are trending down 1.2% compared to 2023; inflation is  3.3% •Retail: down 4.9% •Lodging: down 0.6% •F&B: up 6.0% •Other: down 13.1% Retail: Anecdotally hearing that guests are being more thoughtful about purchases than in past few  years Lodging: Rates are holding high with slight decreases in visitation; majority of decrease from the timing of Easter F&B: Cost increases Externally influenced operating and capital expenditures continue to increase VR’s reported pass sale units down 5% from prior season, total sales up 1% (8% increase in EPIC Pass  price for  2024/2025 season 22 8 BUDGET PREVIEW | Budget Philosophies Town of Vail   |   Finance   |   08/06/24 23 9 BUDGET PREVIEW | Budget Philosophies Town of Vail   |   Finance   |   08/06/24 •The annual budget process is thorough, collaborative, and comprehensive,  allowing for informed appropriations following fiscal policies and objectives •Budget will reflect the town’s vision and support the Council strategic plan and  priorities •Revenues are projected conservatively using economic, analytical and trending  processes •Annual Budgets shall be balanced; The town will operate within annual revenue  streams with the following exceptions: •Recession plan implementation •One‐time costs such as capital investments, planning projects, special events,  and contributions.   •Revenue and expenditures are monitored on an ongoing basis to ensure  expenditures do not exceed appropriations  24 10 BUDGET PREVIEW | Budget Philosophies Town of Vail   |   Finance   |   08/06/24 •Sales tax split between the General Fund and Capital Projects Fund is  recommended to stay at the current split of 62% to the General Fund and 38%  to the Capital Projects Fund •Maintain a reserve minimum balance of 35% of General Fund revenues:  Approx. $22M of annual operating expenditures across all funds •The importance of reserve fund balances is to enable the town to  withstand unforeseen events and economic downturns •Proposed Changes 25 11 BUDGET PREVIEW | Reserve Policy Town of Vail   |   Finance   |   08/06/24 CURRENT RESERVE POLICY Maintain a reserve minimum balance of 35% of General Fund revenues (Approximately $22.0M) PROPOSED UPDATE: Better align reserves with actual expenditures • Decrease General Fund reserve minimum to 25% (approximately $16.0M) • Maintain a minimum reserve of $2.0M in RETT Fund (approximately 25% of operating and Capital Maintenance) • Maintain a reserve minimum balance of 25% of Capital Projects Fund sales tax revenues (approximately $4.0M) • Annual debt service costs of $1.1M • Capital Maintenance 26 12 BUDGET PREVIEW | Revenue Projections Town of Vail   |   Finance   |   08/06/24 27 13 BUDGET PREVIEW | Revenue Projections Town of Vail   |   Finance   |   07/05/2023 General Sales Tax 41% Housing Sales Tax 5%Property and Ownership Tax 8% Use Tax 2% Ski Lift Tax and Franchise Fees 9% Real Estate Transfer Tax 7% Licenses and Permits 3% Intergovernmental Revenue 6%Transportation Centers 9% Charges for Services 2% Rent, Fines & Miscellaneous 7% Earnings on Investments 1% Typical Revenue Split by Revenue Type 28 14 BUDGET PREVIEW | Revenue Projections Town of Vail   |   Finance   |   07/05/2023 % Var to 2024% Var  to 20232025 Proposed2024 Forecast2023 Actual 1%Flat$41.9M$41.4M$41.9M 25.8 25.7 28.3 29.3 25.0 34.5 40.8 41.9 41.4 42.0 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 Forecast 2025 Forecast Total  General Sales Tax  Collections By Year 4% YTD Sales Tax  Trending  down 0.6% from 2023 29 15 BUDGET PREVIEW | Revenue Projections- Sales Tax Town of Vail   |   Finance   |   07/05/2023 2025 Budget 2024  Forecast2023 202220212020 $41.9M$41.4M$41.8M$40.8M$34.5M$25.0MTotal Sales Tax 1.0%(1%)2.7%18.1%38.3%(14.6%)% Increase NA3.0%4.1%8.0%4.7%1.2%CPI % Increase  ‐  2  4  6  8  10  12  14  16  18  20  22 Jan‐ April Summer Nov/Dec Mi l l i o n s 5  YEAR HISTORY: SALES TAX  COLLECTIONS BY  SEASON 2020 2021 Actual 2022 Actual 2023 Actual 2024 Forecast 2025 Projection 30 16 BUDGET PREVIEW | Revenue Projections Town of Vail   |   Finance   |   08/06/24 Note % Var to 2024 % Var  to  2023 2025  Proposed 2024  Forecast 2023  Actual Flat with 2024 (non  assessment year);  Extension of SB 2023B‐001Flat40%$8.1M$8.1M$5.7M PROPERTY TAX •SB 2023B-001 • Reduced Residential Assessments Rates from 6.95% to 6.7% (previously 7.15%) • Exempted $55K • Reduced Commercial from 29% to 27.9% • Exempted $30K •SB24-233 (Passed in May 2024) • Extends reductions from SB 2023B-001 for the 2024 Tax Year 31 17 BUDGET PREVIEW | Revenue Projections Town of Vail   |   Finance   |   08/06/24 Future Property Tax Revenue Impacts •SB24-233 • Further Reduces residential assessment rates • 6.4% for the 2025 tax year (2026 Collections) with $55K Exemption • 6.95% for the 2026 tax year (2027 Collections) with 10% of property value exempted up to $70K. • 5.5% annual increase limit (TOV Home Rule Exemption) •Further Reduces Commercial Assessment Rates • 27% for 2025 tax year (2026 collections) • 25% for 2026 tax year (2027 collections) Staff is working on revenue impact estimates 32 18 BUDGET PREVIEW | Revenue Projections Town of Vail   |   Finance   |   08/06/24 Ballot Initiatives Initiative #50: Limits State Wide Property Tax Revenue Growth • limiting property tax revenue to 4% growth above the total statewide property tax revenue collected in the previous year; and • requiring statewide voter approval if property tax revenue is projected to increase by more than 4% Initiative #108: Decreases Valuation Assessment percentages • Set valuation assessment percentage for residential (including multifamily) to 5.7% and commercial to 24% Staff researching if TOV would be impacted as a home-rule municipality 33 19 BUDGET PREVIEW | Revenue Projections Note % Var to 2024 % Var  to  2023 2025  Proposed2024 Forecast2023 Actual 2024 trending up 5% from 2023;  2024/2025 pass sales 5% down in unit  sales compared to 2023; up 1% in sales  dollars (VR report though May)Flat4%$6.8M$6.8M$6.5M LIFT TAX 34 20 BUDGET PREVIEW | Revenue Projections Town of Vail   |   Finance   |   08/06/24 Notes % Var to 2024 % Var  to  2023 2025  Proposed 2024  Forecast 2023  Actual Construction use tax  trending down 4.8%  from PY Flat(5)%$2.4M$2.4M$2.5M Construction  Use Tax 2024 daily pacing  down 3% from 2023(0.5)%(3)%$9.2M$9.1M$9.4M Parking  Revenues $4.7M collected YTD(2.5)%(6)%$7.5M$7.7M$8.0M Real  Estate  Transfer  Tax Decrease mainly due  to investment  earnings(2)%(6)%$99.5M$101.0M$105.7M Total   Revenues  (All Funds)* •Total  Revenues exclude one‐time large transfers and grants. Staff will continue to monitor closely and adjust revenue projections through the budget  process 35 BUDGET PREVIEW | Reserves Town of Vail   |   Finance   |   08/06/24 36 22 BUDGET PREVIEW | Available Reserves Town of Vail   |   Finance   |   08/06/24 • At the end of 2024 reserves in the Town’s four main funds are projected to be $68.4M with $46.4M of that available to spend: • GF $30.4M • CPF $30.2M • RETT $7.8M •HF $0 • Reserve projections include: • Dobson financed with VRA loan • Timber Ridge cash contribution of $38.6M reimbursed in 2026/2027 • Purchase of Timber Ridge Units with cash from GF and CPF in 2026 Excludes West Middle Creek 37 23 BUDGET PREVIEW | Available Reserves Town of Vail   |   Finance   |   08/06/24 139.9M 46.4M 30.1M 37.9M 53.8M 53.2M  0.0M  20.0M  40.0M  60.0M  80.0M  100.0M  120.0M  140.0M  160.0M 2023 2024 2025 2026 2027 2028 Projected Available Reserves  (above reserve minimums) GF HF CPF RETT Note: Assumes VRA financing for Dobson 38 BUDGET PREVIEW | Operating Expenditures Town of Vail   |   Finance   |   08/06/24 39 BUDGET PREVIEW | Operating Expenditures 2025 Proposals will prioritize the Council Strategic Plan Other expenditures will include: • Price escalations • Investment in town employees • Repairs and maintenance of town’s current assets Town of Vail   |   Finance   |   08/06/24 40 BUDGET PREVIEW | General Fund Town of Vail   |   Finance   |   07/05/2023 Summary of the General Fund over the next 5 years 20292028202720262025 2024  Forecast $69.6M$68.0M$66.2M$64.3M$62.8M$62.1MRevenues $47.3M$45.2M$43.3M$ 41.4M$ 39.4M$ 37.6MPersonnel  $21.6M$21.5M$20.9M$20.3M$ 19.7M$19.7MOperating, Planning  Projects, Contributions $3.0M$2.9M$2.8M$2.8M$2.7M$2.6MEvent Funding $68.9M$66.7M$64.1M$61.7M$59.1M$57.3MTotal Expenditures (38K)Tfr to Other Funds 1.1M28.9M(30.0M)Tfr to TR (Site/Podium) (13.7M)TR (Units) (5.0M)(5.0M)(5.0M)(5.0M)(5.0M)Parking Reserve 200K200K200K200K200K(3.3M)Booth Heights $32.7M$39.7M$46.1M$36.9M$26.6M$30.4MReserves 41 BUDGET PREVIEW | Operating Expenditures • Operating expenditures will be presented to Council at the November 5th meeting with a first draft of the Town Manager Budget Town of Vail   |   Finance   |   08/06/24 42 BUDGET PREVIEW | Capital Plan Town of Vail   |   Finance   |   08/06/24 43 BUDGET PREVIEW | Capital Plan Town of Vail   |   Finance   |   08/06/24 • Revenues within the Capital Fund are used for capital projects as identified through the Capital Improvement Plan (CIP). • A well written CIP ensures that the physical assets of the Town are maintained or improved at a level adequate to (1) protect the Town’s current capital assets; (2) minimize future maintenance and replacement costs; and (3) meet the growing needs of the Vail community. • The priorities the departments, boards & commissions and Town Council are collectively considered in the Plan. • Only the current year is appropriated by Council, projects in later years represent a capital plan, not a budget. • Capital expenditures are funded in the Capital Projects Fund, RETT Fund, and Housing Fund 44 BUDGET PREVIEW | Capital Plan Town of Vail   |   Finance   |   08/06/24 Summary of the Capital Projects Fund over the next 5 years 2028202720262025 2024  Forecast $19.8M$22.4M$28.6M$32.9M$32.8MRevenues $10.8M$7.6M$7.8M$7.4M$13.0MAnnual Maintenance $6.8M$11.8M$13.5M$58.2M$38.1MCapital Projects $1.2M$1.2M$1.2M$1.2M$1.2MDebt Service $18.7M$20.6M$22.5M$66.7M*$52.3MTotal Expenditures $24.7MDobson COP $20.9M$19.9M$18.1M$12.3M$30.2MReserves *Includes estimate of $50.4M for Dobson. Proposed to be financed by VRA. 45 BUDGET PREVIEW | Capital Plan Town of Vail   |   Finance   |   08/06/24 Summary of the RETT Fund over the next 5 years 2028202720262025 2024  Forecast $7.7M$7.7M$7.6M$7.5M$7.7MRevenues $ 1.4M$1.0M$ 2.6M$ 1.6M$ 5.8MAnnual Maintenance $650.0K$830.0K$1.2M$880K$24.4MCapital Projects $6.3M$6.1M$5.9M$5.9M$6.5MOperations (Environ, Parks,  Wildland, AIPP, Nature Center  ops, Contributions) $200.0K$200.0K$200.0K$200.0K$200.0KDebt Service (to GF) $762.5KTransfer to CPF for  Dobson $8.5M$8.2M$9.9M$9.1M$36.8MTotal Expenditures $3.6M$4.1M$4.4M$7.2M$7.8MReserves 46 BUDGET PREVIEW | Capital Plan Town of Vail   |   Finance   |   08/06/24 Summary of the Housing Fund over the next 5 years * The InDeed Program is funded by the Capital Fund @ $2.5M annually; these funds  are also utilized for other housing projects if not used for InDeed 20292028202720262025 2024  Forecast $7.8M$7.7M$7.7M$7.5M$12.4M$8.9MRevenues ‐‐‐$25.4M$4.3M$12.4MCapital Projects $2.5M$2.5M$2.5M$2.5M$1.5M$3.0M*InDeed $2.5M$2.5M$2.5M$2.5M$13.5M$17.6MTotal Expenditures ‐‐13.4M‐‐($12.2M)Tft from/(to) Timber Ridge  $15.4M$10.0M$4.8M‐$6.7M‐Reserves 47 BUDGET PREVIEW | 5 Year Capital Plan Town of Vail   |   Finance   |   08/06/24 Notable projects proposed in current 2025 Capital Plan: Capital Projects Fund • Dobson Ice Arena: $50.0M • Placeholder for Geothermal Energy System: $1.5M • Parking Structure Maintenance: $1.3M • Radio Replacement: $1.0M Real Estate Transfer Tax Fund • Gore Creek Promenade Rehabilitation: $750K •Note: The 5 Year plan has not been updated with exception of proposed financing for Dobson arena and some high level revenue assumptions 48 BUDGET PREVIEW | 5 Year Capital Plan Town of Vail   |   Finance   |   08/06/24 Unfunded Projects FundProject HFWest Middle Creek Housing Development HFDevelopment of CDOT East Vail  housing parcel HFCDOT Eagle‐Vail  parcel (partnership with other municipalities) CPFChildren’s Garden of Learning Long‐term Permanent Location CPFWest Vail  Master Plan Outcomes GFParking Structure Redevelopment 49 BUDGET PREVIEW | 5 Year Capital Plan Town of Vail   |   Finance   |   08/06/24 Vail  Reinvestment Authority TotalFunding $48.8MVRA (2024‐2030)* $0.8MRETT funds allocated over 5 year plan $1.0MGF: Temporary  Ice $1.8MCPF Reserves $3.0MVRD: Ice System $55.4MTotal  50 BUDGET PREVIEW | Recap 1. Does Council agree with the standard budget philosophies and practices? 2. Does Council have comments on staff’s preliminary revenue assumptions? 3. Does Council support suggested reserve policy changes? 4. Is there anything else you would like staff to be aware of as we build the budget? Town of Vail   |   Finance   |   08/06/24 51 TO: Vail Town Council FROM: Town Manager / Department Heads DATE: August 6, 2024 SUBJECT: 2025 Budget Preview I. SUMMARY This meeting's purpose is to provide a high-level preview of the town’s 2025 budget process and gather feedback from Council on preliminary budget assumptions. This feedback will be used to create the 2025 draft proposed budget, which will be presented to the Council on November 5th. The final budget ordinance reading is scheduled for December 3rd. II. BACKGROUND During the 2025 budget development, departments will be working to propose a budget that will include prioritized goals and initiatives stated as outlined in the Council Strategic Plan. The strategic plan is a result of town community surveys, focus groups, as well as staff and council planning sessions to support the town’s mission “To provide exceptional public services to people who live, work, and play here so they can connect to the community and to nature, create memories, find opportunities to thrive, and have the time of their lives. The strategic priorities are as follows: CREATE A STRONG COMMUNITY AND CREATE AFFORDABLE HOUSING OPPORTUNITIES SUPPORT OUR WORKFORCE PROVIDE AN AUTHENTIC VAIL EXPERIENCE. TRANSPORTATION ENVIRONMENTAL SUSTAINABILITY In addition to the priorities developed in the strategic plan, standard budget philosophies and practices have been developed over time and agreed to or revised by the Council to develop the budget. •Budget will reflect the town’s vision and support the Council Action Plan •Revenues are projected conservatively using analytical and trending processes such as forecasting •The town develops a multi-year financial projection for all major funds, including a long- term capital improvement plan •The importance of reserve fund balances is to enable the town to withstand unforeseen events and economic downturns; however in recent years General Fund reserves 52 Town of Vail Page 2 beyond minimum limits have been appropriated for one-time contributions, both master planning projects, special events, and capital investments • The annual budget process is thorough and comprehensive, allowing for informed appropriations in accordance with fiscal policies and objectives • Keeping 35% as minimum reserves (based on annual revenue); Approx. $22.0M • Sales tax split between the General Fund and Capital Projects Fund is recommended to stay at the current division of 62% to the General Fund and 38% to the Capital Projects Fund • The town will operate within annual revenue streams with the exception of years when the town’s recession plan is implemented. II. PROPOSED RESERVE POLICY CHANGES The Town’s current reserve policy as listed above is to keep General Fund reserves equal to or above 35% of annual revenues. This is equivalent to $22.0M. Although other funds also fund operating costs, debt service payments, and annual capital maintenance expenditures, no other town fund has a reserve requirement. Staff proposes updating the reserve policy to include other funds that align the reserve policy with actual fund expenditures. The following changes are proposed:  Decrease the General Fund reserve minimum to 25% (approximately $16.0M)  Maintain a minimum reserve balance of $2.0M in the Real Estate Transfer Tax Fund or approximately 25% of annual operating and capital maintenance expenditures. This fund has an operating costs of and annual capital maintenance costs of $8.8M  Maintain a reserve minimum of 25% of Capital Projects Fund sales tax revenues (approximately $4.0M). This fund has annual debt serves costs of $1.1M and average annual capital maintenance costs of $9.3M The estimated reserve requirement of $22.0M remains the same but is proposed to be allocated across the town’s other major funds so that one fund (the General Fund) is not responsible for maintaining reserve levels for all funds. IV. BUILDING THE BUDGET Revenue projections and reserve levels are the foundational information for the budget process. Reserves have been adjusted to reflect budget appropriations that occurred mid-year and updated revenue forecasts. Council goals and initiatives and the strategic plan guide the budget process. Revenue Projections: Revenue projections set the stage for the upcoming budget year and are the first step in determining annual operating expenditures given to the internal departments. In line with the town’s budget philosophies, staff proposes a conservative approach to revenue projections. Between 2021 and 2022, the Town experienced significant growth in many of the town’s major revenue sources, including sales tax, lift tax, construction use tax, and real estate transfer tax. Contributing to the unprecedented revenue growth were increased guest visitation, low borrowing rates, inflation, and record-high daily rates within accommodation services. With higher than expected revenues combined with conservative spending during the pandemic, the town added a cumulative $22.9M to the General Fund fund balance between 2020 and 2023. These funds are anticipated to be used with the redevelopment of Dobson and Timber Ridge. In 53 Town of Vail Page 3 2023 revenues remained strong but sales tax, parking, and lift tax revenues began to level off with visitation slowing from previous record years. Real Estate sales and construction activity also began to normalize. While revenue growth has continued to flatten into 2024 the town continues to experience cost increases in both capital and operating expenditures. When developing revenue projections staff also looks current economic trends. The US and Colorado economies are slowing. Core CPI of 2.6% is the lowest it has been in over three years but is still above the Federal Reserve’s 2% target. Wage growth and consumer spending has also been declining however home prices across the nation continue to rise. Additionally, the upcoming presidential election, could have other future economic impacts. Locally, sales tax collections suggest that visitation is decreasing but is partially being offset by an increase in inflation. Anecdotally staff is hearing that guests are being more thoughtful about purchases than they have in the past few years. Within the accommodation services, hotels and lodges have been holding rates high with a slight decrease in occupancy. Staff will continue to reassess the 2025 projected revenues throughout the budget process. The town’s 2025 revenue is preliminarily projected at $113.9 million. Excluding one- time revenues such as federal transit capital grants, American Rescue Plan funds, and the Vail Reinvestment Authority transfer, the 2025 proposed revenue totals $99.9M, down 1% from the 2024 forecast and down 5% compared to 2023 actuals. The majority of the decrease is related to invest earning projections. Sales tax is the town’s largest generator of revenues. In 2021 and 2022 the Town experienced unprecedented growth. 2021 sales tax collections reflected an 18% increase over 2019 with 2022 experiencing another 18% growth over 2021. The 2023 early winter season started strong with a 6% year-over-year increase in sales tax collections. However, going into summer collections reflected a slowdown in growth and annual sales tax collections ended the year with 2.7% increases compared to prior year. 2024 has continued the trend of a normalization in visitation. Coming off two record breaking winters, early winter of 2024 was down 1% compared to the prior year while early summer (May) though June has reflected a modest increase of 1% compared to prior year. The chart below reflects sales tax collections by season and includes the 2024 forecast and 2025 projections for the Town’s 4% General Sales Tax. Between 2019 and 2023 annual Sales tax collections have increased 43%. This is compared to CPI increase over the same period of 19.36%.) Lodging tax collections alone have increase 51% which is due largely to an increase in ADR. 54 Town of Vail Page 4 2024 Forecast: Through June 2024, collections for the town’s 4% general sales tax totaled $25.7M, down 0.6%. January through April sales tax collections were down 1% compared to 2023. Summer has been conservatively projected flat compared to 2023, with a 3% decrease in collections going into the early winter season to reflect a normalization in visitation. In total, the 2024 forecast reflects a 1% decrease in collections compared to 2023. 2025 Forecast: Sales tax collections for 2025 are forecasted at $41.9M, up 1% from the 2024 forecast and flat with 2023 actuals. January through April of 2025 are projected up 2% from 2024, and flat with 2023, with both summer and winter projected up 1% from the 2024 forecast. In the November 2021 election, voters approved a 0.5% sales tax to be used towards housing initiatives, programs, and projects. Projections for the 2025 Housing tax collections are consistent with the 4% general sales tax. Housing tax revenues are proposed at $5.0M, flat with the 2024 forecast. RETT Tax is proposed at $7.5 million, down 6% from the 2023 actuals and down 2.5 % from the 2024 forecast. After record RETT collections in 2022 totaling $13.4M, RETT collections began to slow as interest rates increased. 2022 annual collections totaled $9.6M in 2022 and $8.0M in 2023. RETT collections year to date total $4.8M, with collections projected to end the year at $7.7M. Excluding timeshares, the average sale price has increased by 6%; however, that has been increased due to several very high dollar residential sales. Without those sales, the average sales price is down 1.2%, while the number of transactions is up 29%. Parking sales revenues are proposed at $9.2 million, flat with the 2024 forecast and up 2.7% from 2023 actual collections. Prior to the 2022/2023 winter season, the town installed a new parking system, allowing for a more dynamic pricing structure for both daily and pass sales. Accompanying the new parking system was a new online pass sales software. The pass sales - 2 4 6 8 10 12 14 16 18 20 22 Jan- April Summer Nov/Dec Mi l l i o n s 5 YEAR HISTORY: SALES TAX COLLECTIONS BY SEASON 2020 2021 Actual 2022 Actual 2023 Actual 2024 Forecast 2025 Projection 55 Town of Vail Page 5 software did not provide the community and guests with the high level of community service expected. While staff looked for a new online parking sales solution during the 2023/2024 winter season the annual renewal cost for the local passes was waived (approximately $80K). For the 2024/2025 winter season, staff anticipates that this charge will be reinstated. The 2025 projection anticipates a slight decrease in visitation aligning with sales tax projections combined with an increase in revenue as the local pass charge is put back in place. Property tax collections are estimated at $8.5 million, flat compared to the prior year. 2025 is an assessment year. 2024 property tax revenues increased 40% compared to 2023. Over the past several years, real estate values have skyrocketed. To help reduce the impacts of increased assessed values for property owners several Senate Bills have been recently introduced. These bills have decreased property tax valuations by both exempting a portion of the property value from being taxed and/or by decreasing the assessment multiplier applicable to the property. The most recent bill was passed in early 2024 and will impact revenue collections by further reducing residential and commercial assessment rates and also exempting up to $70K of the value of a residential property beginning in 2025 for the 2026 revenue collection year. Staff is working to estimate revenue impacts to the Town as a result. Additionally, two ballot initiatives impacting property taxes are anticipated to be on the November 2024 ballot. Initiative 50 will limit state-wide property tax revenue growth to 4%. Initiative 108 will further decrease the assessment rate to 5.7% (down from 6.4% per the most recent Senate bill). Both bills would be put in place for the 2026 collection year. The town is researching if, as a home rule municipality, the town would be exempt should they pass. Construction Use Tax is proposed at $2.4 million for 2025, flat with the 2024 forecast. Constriction activity is leveling out. The 2025 projection does not currently include assumptions for any major redevelopment projects; however, staff will continue to review and reevaluate the potential for any new development projects expected in 2025. Investment Earnings in 2023 totaled $7.6M due to a high interest rate environment. This is compared to the five year average prior to the pandemic of $872K annually. 2025 investment earnings are forecasted conservatively at $1.0M. Anticipating potential decreases in yields as early as 4th quarter of 2024 combined with spending down the fund balances for Timber Ridge and Dobson projects. Operating Budget: The Town’s operations are largely funded by the Town’s General Fund, with some departments funded by the Real Estate Transfer Tax Fund. For 2024, operating budgets are still expected to be impacted by rising costs. Staff expects department operating budget increases for supplies, utilities, and contract services. As departments develop and propose 2025 budget requests, departments will be asked to be intentional when developing annual operating requests and to align them with Council’s strategic plan and the action items associated with that plan. New programs, projects, and initiatives will be evaluated based on the Council strategic plan. Carried throughout the 2025 budget will be a focus on customer service as well as a continued focus on employee recruitment and retention. Reserves The Town has several significant projects planned to move forward in 2024 and 2025. These projects could significantly impact the Town’s reserves and, therefore, what will be available to spend on other Council priorities over the next several years. Council will receive a separate presentation to kick off the Budget Retreat with several options to either cash fund or finance the Dobson and Timber Ridge projects. 56 Town of Vail Page 6 Within the presentation, staff has recommended that the Vail Reinvestment Authority finance Dobson. This option utilizes cash reserves while also taking advantage of financing available to the VRA with a low interest rate cost and without impacting the Town’s debt capacity. This option will also leave reserve levels at a comfortable level to continue to look at other projects currently on the unfunded list or identified in the strategic plan. A look at reserves under this option is below. Unfunded Several large capital projects are not currently included in the 5-year plan but have been identified by Council as a priority. Unfunded projects include: • West Middle Creek Housing Development • Redevelopment of 75 S. Frontage Rd (municipal lot) • Development of CDOT East Vail housing parcel • CDOT Eagle-Vail parcel (partnership with other municipalities) • Civic Center and municipal building development • Children’s Garden of Learning Long-term Permanent Location • West Vail Master Plan Implementation • Lionshead and Vail Village parking structure redevelopments The town’s reserves alone will not be able to fund all of the above projects. The Council will need to continue to prioritize projects in addition to looking for public-private partnerships, grant opportunities, utilizing a save and pay approach, and analyzing additional debt capacity. There may also be a need to explore alternative revenue sources such as summer parking, an increase in lodging tax for event funding, and new TIF District opportunities. Capital Plan The Town’s major capital funds include the Capital Projects Fund, Real Estate Transfer Tax Fund, and Housing Fund. The Vail Reinvestment Authority is also utilized to fund projects within the VRA District. Attachment A includes the Town’s current 5-year capital plan. This has been included for information purposes and to get Council’s initial feedback on current projects included within the 2025 budget. Reserves within these funds are being impacted by upfront cash fund Dobson Arena and the Timber Ridge redevelopments, as mentioned above. 139.9M 46.4M 30.1M 37.9M 53.8M 53.2M 0.0M 20.0M 40.0M 60.0M 80.0M 100.0M 120.0M 140.0M 160.0M 2023 2024 2025 2026 2027 2028 Projected Available Reserves (above reserve minimums) GF HF CPF RETT 57 Town of Vail Page 7 The attached capital plan has only been updated to reflect 2024 supplemental adjustments, updated revenue projections, and financing assumptions for Dobson arena. Staff will return on October 15th with the updated five-year capital plan. To date, notable projects proposed for 2025 include: Capital Projects Fund •Geothermal Energy System ($1.5M) •Town-wide radio replacement ($1.0M) •Parking structure maintenance ($1.3M) Real Estate Transfer Tax Fund •Gore Creek Promenade Rehabilitation: $750K Housing Fund Vail voters passed a 0.5% housing tax that became effective January 1st, 2022. The 0.5% tax is collecting approximately $5.0M annually to go toward housing projects, programs, and initiatives. During 2025, the Housing Fund is proposed to contribute funds towards the site and podium costs of the Timber Ridge redevelopment. As these funds are paid back in 2025 and 2026 there are several projects identified on the Unfunded list and prioritized by Council that could utilize these funds. The Housing Fund is also funded by an annual $2.5M transfer from the Capital Fund to support the Vail InDeed program. Unspent funds from the transfer remain with the Housing Fund and are then reappropriated to be used towards the InDeed program or other capital housing projects. The Vail Reinvestment Authority The Vail Reinvestment Authority is another source of available funds, but it can only be used for projects within the district. The VRA is estimated to have $45.0M of available funds between now and 2030. All VRA funds MUST be used by June 30, 2030. It is anticipated that all remaining funds will be used to fund the renovation of the Dobson area. ACTION REQUESTED The feedback given during this work session will help establish a foundation from which to build the 2025 budget and is not considered an “approval” of any particular item within the budget. Upcoming budget presentations will provide more opportunities for adjustments and Council and public feedback. However, to give direction to departments in beginning to build their budgets, staff is requesting feedback on the following: 1.Does Council agree with the standard budget philosophies and practices? 2.Does Council support the shift in the reserves policy? 3.Does Council have comments on staff’s preliminary revenue assumptions? 4.Is there anything else you would like staff to be aware of as we build the budget? 58 2024 2024 2024 Amended Forecast 2025 2026 2027 2028 Revenue Total Sales Tax Revenue:40,850,000$ 40,850,000$ 41,386,000$ 42,214,000$ 43,058,000$ 43,919,000$ 44,797,000$ 2024: Down 1% from 2023 Forecast (Includes estimates to Residences Inn), 2025/2026: 2% increase, 2027/2028: 3% Increase Sales Tax Split between General Fund & Capital Fund 62/38 62/38 62/38 62/38 62/38 62/38 62/38 Sales tax split 62/38 Sales Tax - Capital Projects Fund 15,523,000$ 15,523,000$ 15,726,680$ 16,041,000$ 16,362,000$ 16,689,000$ 17,023,000$ Updated projections based on YTD actuals, with remainder of the year down 8% from PY; 2% down from 2022 in total; Sales tax split 62/38 Use Tax 2,040,000 2,040,000 2,040,000 2,081,000 2,123,000 2,165,000 2,208,000 Based on 5-year average; 2024 - 2028: 2% Increase Franchise Fee 205,000 1,126,672 1,126,672 209,000 213,000 217,000 221,000 2024: Utilize 1% Franchise Fee for Holy Cross underground utilities project Federal Grant Revenue - 3,464,882 3,464,882 - - - - 2024: Re-appropriate Hickenlooper/Bennet Federal grant award for two electric buses ($1.65M); and 5339 (B) Federal Grant towards two electric buses ($1.8M) Other State Revenue 750,000 3,600,276 3,600,276 - - - - 2024: MMOF grant towards Mobility Hub Design ($750K); Re-appropriate CDOT grant towards four electric buses ($2.0M), CDOT grant towards four electric bus chargers ($255.7K), remaining MMOF Grant for l&d and bollards($164.4K), fleet charging station grant ($30K); Colorado Energy Office grant towards the design of Geothermal Energy project ($250K) Lease Revenue 172,270 172,270 172,270 172,270 172,270 172,270 180,884 Per Vail Commons commercial (incr. every 5 years) Project Reimbursement- TR Land Reimbursement - - - 4,399,500 - - 2026: Timber Ridge Land Reimbursement Project Reimbursement 558,562 774,437 774,437 - - - - 2024: Utilize Holy Cross Enhancement Fund for HCE Underground Utility Project; Total balance $774,437 Timber Ridge Loan repayment 468,933 468,933 462,955 468,977 464,423 3,074,541 - 2026: Payoff of Timber Ridge Loan using proceeds of new Timber Ridge unit sales Earnings on Investments and Other 289,610 289,610 883,112 341,734 86,306 126,471 139,144 0.7% returns assumed on available fund balance; Total Revenue 20,007,375 27,460,080 28,251,284 19,313,981 23,820,499 22,444,282 19,772,028 Expenditures Facilities Facilities Capital Maintenance 469,500 942,987 942,987 265,000 360,000 370,800 381,924 2024 includes: PW 30% roof replacement ($75K), Buzzard Park repairs ($75K), Buzzard Park roof repairs ($50K), transit office windows and doors ($25K), PW overhead garage door ($50K), PW carpet replacement ($50K); Additional funds for Transit Office Air Handler Engineering and Library Air Handler Engineering using 2023 savings from Municipal Complex Maintenance ($473.5K) 2025 includes: Fire Station II Overhead garage doors ($25K), Library Boiler Replacement ($25K); 2026 includes: Lionshead Transit Center Repairs ($50K), Buzzard Park washer/dryer replacement ($15K); Transit Office carpet replacement ($15K); 2027 includes: Lionshead transit center exterior stain ($45k), Lionshead welcome center 1st floor and Grandview flooring replacement ($100k), PW Shop & Bus Barn Roofing 30% ($75K), PW Shop boiler replacement ($35K), ford park lift station pump ($40K); 2028 includes: Fire Station II Sloped Roof Replacement ($50K), public works administration hot water heater replacement ($40K), vail valley drive lift station ($40k); Municipal Complex Maintenance 260,000 1,285,000 1,285,000 267,800 275,834 284,109 292,632 2024: Re-appropriate remaining funds for Muni HVAC Replacement ($1.0M); 2025-2028: 3% annual increase Building Energy Enhancement Projects 25,000 50,000 50,000 25,000 25,000 25,000 25,000 2024: Re-appropriate funds for planned energy enhancements to Town buildings; 2024 - 2028: Placeholder for energy enhancements specific to Town buildings Public Works Building Maintenance - 180,000 180,000 - 100,000 - - 2024: Re-appropriate funds towards PW Admin exterior building paint, furnace relocation, and window replacement ($180K) 2026: Roof Replacement ($100K) Welcome Center/Grandview Capital Maintenance 25,000 121,778 121,778 25,000 25,750 26,523 27,318 2024: Re-appropriate furniture upgrade in Lionshead welcome center ($83.7K); Use savings of $13K from Welcome Center displays to go towards furniture upgrades; 2024 - 2028: Annual Maintenance ($25k) Purchase of Employee Rental Units 2,000,000 3,224,136 3,224,136 2,000,000 2,000,000 2,500,000 2,500,000 2024-2028: Placeholder for purchase of TOV employee housing stock; 2024: Re-appropriate funds towards continuing purchase of TOV employee housing stock ($1.2M) Timber Ridge units - Purchase TR units Employee Rental Capital Maintenance 150,000 280,000 280,000 150,000 75,000 75,000 75,000 2024-2028: Capital Maintenance budget for town owned rental units; 2024: Re-appropriate window replacement Buffehr Creek #6A and #4A ($47.2K) and roof replacement at the Hamlet unit ($72.8K) Geothermal Energy System - 400,000 400,000 1,500,000 - 3,000,000 - 2024: Utilize placeholder for efficient snowmelt boiler replacements towards the Geothermal Project design, planning, and construction ($150.0K); $250.0K additional design funds offset by grant from Colorado Energy Office; 2025: Placeholder for geothermal component of snowmelt boiler replacement ($1.5M); 2027: Placeholder for geothermal component of snowmelt boiler replacement ($3.0M); Snowmelt Boilers Replacement 1,000,000 1,961,634 1,961,634 1,000,000 - 500,000 - 2024-2027: Placeholder for replacement of BTU boilers at end of life Arrabelle Snowmelt Boilers - 190,000 190,000 - - - - 2024: Re-appropriate funds towards Arabelle Boiler Replacement - Shared with Vail Resorts ($190.0K) Donovan Pavilion Remodel 50,000 50,000 50,000 - 25,000 - - 2024/2026: Capital Maintenance Placeholders Mountain Plaza Elevator Renovation - - - 100,000 - - - 2025: Mountain plaza elevator renovation (shared cost with Vail Resorts) Vail Mobility Hub Expansion 1,500,000 1,500,000 1,500,000 - 2,000,000 - - 2024: Design for Vail Mobility Hub (VTRC) Expansion ($750K MMOF match grant); 2026: Placeholder for future grant match to construction expansion TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND 59 2024 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND Fire Sprinkler Upgrades at Bus Barn 500,000 600,000 600,000 - - - - 2024: Update Fire Sprinkler system in bus barn to accommodate needs of expanded electric bus fleet ($500k); Re- appropriate design funds for sprinkler system updates ($100K) Public Works Shops Expansion - 114,543 114,543 - - - - Re-appropriate funds towards architectural feasibility and planning for identified phase two expansion opportunities ($114.5K) Total Facilities 5,979,500 10,900,078 10,900,078 5,332,800 4,886,584 6,781,432 3,301,874 Parking Parking Structures 1,040,000 1,040,000 1,040,000 1,287,000 1,275,000 1,315,000 1,405,000 2024-2028: Various repairs including deck topping replacement, expansion joint repairs, ventilation, HVAC, plumbing and other structural repairs Parking Entry System / Equipment - 327,191 327,191 - - - 1,045,500 2024: Re-appropriate $114.8K for remaining parking system replacement costs; 2028: Placeholder for parking system update Red Sandstone Parking Structure 70,000 70,000 70,000 - 50,000 - - 2024: $70K structure resealing; 2026: $50K Concrete patch replacement Total Parking 1,110,000 1,437,191 1,437,191 1,287,000 1,325,000 1,315,000 2,450,500 Transportation Bus Shelters 30,000 232,583 232,583 30,000 30,000 30,000 30,000 2024 - 2028: Bus shelter annual maintenance ($30K); 2024: Re-appropriate funds for Bus Shelter Additions in East Vail ($202.6K) Replace Buses - 7,850,000 7,850,000 - - - - 2024: Re-appropriate $7.9M funds for six bus replacements with electric models - Offset by grant funding ($9.6M) Bus Wash Equipment - 650,000 650,000 - - - - 2024: Re-appropriate Bus Wash Replacement ($300K); Increase in cost for bus wash replacement, offset by 2023 savings in Facility Maintenance and Bus Replacements ($350K) Bus Transportation Management System - - - - - - 1,000,000 2028: Replacement for Bus Management System ($1.0M) Bus Sign Replacement - 15,025 15,025 - - - - 2024: Re-appropriate $15.0 remaining funds for electric bus signage replacement project Traffic Impact Fee and Transportation Master Plan Updates - 33,943 33,943 - - - - 2024: Re-appropriate remaining funds to finalize and adopt Go Vail 2045 ($48.9K); 2024: Utilize savings from Transportation Master Plan for the Bus Route Optimization plan. Hybrid / Electric Bus Battery Replacement - 165,000 165,000 - 360,000 - 500,000 2024: Re-appropriate $165K contingency for hybrid bus battery failure; 2026: Scheduled replacement placeholder; Estimated life of 6 years; While batteries are passed their lifecycle replacement has not been needed as of yet; 2028: $500,000 Placeholder for Electric Bus Battery Replacement Bus Camera System - - - - 290,000 - - 2026: Replace current fleet of 33 buses with updated camera surveillance system. In 2026 the camera system will be 11 years old and reaching end of life Electric bus chargers and electrical service rebuild 600,000 993,783 993,783 - - - - 2024: $600K New charging station placeholders for additional electric buses added to fleet; Re-appropriate $393.8K for electric bus charging infrastructure project Total Transportation 630,000 9,940,334 9,940,334 30,000 680,000 30,000 1,530,000 Road and Bridges Capital Street Maintenance 1,640,000 1,640,000 1,640,000 1,450,000 1,743,000 1,457,000 2,145,000 2024 includes surface seal ($310K); asphalt mill overlay ($550K); Drainage Improvement ($105k) Street Light Improvements 75,000 440,000 440,000 75,000 80,000 80,000 80,000 2023: Re-appropriate street light replacements, town now has electrical supervisor to complete work $290K; Town-wide street light replacement; 2024 - 2025: Annual Town-wide street light replacement ($75K); 2026 - 2028: $80K annual Town-wide street light replacement ($80K); 2024: Re-appropriate street light improvements ($365K) Slifer Plaza/ Fountain/Storm Sewer - 70,714 70,714 - - - - 2024: Re-appropriate $70.7k towards water quality smell issues not completed in 2023 Vail Health / TOV Frontage Road improvements - 235,317 235,317 - - - - 2024: Re-appropriate funds for the remaining project: widen sidewalk at Vail International ($235.3K) Neighborhood Bridge Repair - 1,085,599 1,085,599 - 500,000 - - 2024: Re-appropriate funds for complete on going projects at Nugget Ln, Lupine Dr, Bighorn Rd at Pitkin and Bighorn Creeks, as well as scour mitigation at Main Gore Dr and Chamonix Rd ($1.1M); 2026: Kinnikinnick East Bridge Rehabilitation Seibert Fountain Improvements - 27,082 27,082 - 100,000 - - 2024: Re-appropriate funds for fountain upgrades ($27.0K) not complete in 2023; 2026: Placeholder for pump replacement Roundabout Lighting Project - 1,236,697 1,236,697 - 2,000,000 - - 2026: New lighting at the West Vail roundabout. Current light poles will be replaced with 30' LED light poles and would incorporate smart transportation equipment such as traffic cameras ($2M); 2024: Re-appropriate funds to complete lighting project at Town Center ($1.2M) Neighborhood Drainage Master Plan Update - - - 350,000 - - - 2025: Develop Town Drainage Master Plan to be consistent with new East Vail Drainage Master Plan & updated rainfall intensities Neighborhood Road Reconstruction - 1,588,809 1,588,809 - - 1,000,000 - 2024: Re-appropriate funds for Meadow Dr culvert lining project, culvert replacement on Black Gore Dr, design for drainage improvements at Meadow Dr/Meadow Ln ($1.6M) 2027: East Vail Road Drainage Improvements West Lionshead Circle Crosswalk - - - - 100,000 650,000 - 2026/2027: $750K for crosswalk at Lionshead place 60 2024 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND East Vail Interchange Underpass Sidewalk - - - - - 750,000 - 2027: Request from the Planning and Environmental Commission to construct a pedestrian sidewalk beneath the East Vail interchange; pedestrian count study at the underpass is recommended to be completed before the start of this project. Project deferred from 2020 to 2027; 2027: Request from the Planning and Environmental Commission to construct a pedestrian sidewalk beneath the East Vail interchange; pedestrian count study at the underpass is recommended to be completed before the start of this project. Project deferred from 2020 to 2027 Vail Village Streetscape/Snowmelt Repair 1,500,000 2,933,961 2,933,961 - 1,250,000 - - 2024 - 2026: Replacement of 18 yr. old streetscape and snowmelt infrastructure (piping) in Vail Village; Re-appropriate funds for ongoing Vail Village Streetscape/Snowmelt repair ($1.4M) Vail Road Sidewalk Construction - - - 100,000 1,000,000 - - 2025: Sidewalk construction on Vail Rd. between Beaver Damn and Forest Rd. ; 2025/2026: Sidewalk construction on Vail Rd. between Beaver Dam and Forest Rd. East Mill Creek Culvert Replacement - - - - - 100,000 1,000,000 2025: Replace the metal pipe culvert from Vail Valley drive from Gold Peak to Manor Vail; 2027/2028: Replace the metal pipe culvert from Vail Valley drive from Gold Peak to Manor Vail Sandstone Creek Culvert Replacement at Vail View - - - - - 100,000 1,000,000 2025: Replace the metal pipe culvert at Sandstone Creek and Vail View Drive; 2027/2028: Replace the metal pipe culvert at Sandstone Creek and Vail View Drive Lionshead Streetscape/Snowmelt Replacement (VRA)- 250,000 250,000 - - - - 2024: Re-appropriate funds for the completion of 18 yr. old streetscape and snowmelt infrastructure replacement ($250k) Total Road and Bridge 3,215,000 9,508,179 9,508,179 1,975,000 6,773,000 4,137,000 4,225,000 Technology Town-wide camera system 30,000 30,000 30,000 50,000 50,000 25,000 25,000 $30K Annual maintenance; 2024-2028: Annual maintenance Audio-Visual capital maintenance 150,000 150,000 150,000 100,000 50,000 50,000 50,000 Annual maintenance / replacement of audio-visual equipment in town buildings such as Donovan, Municipal building, Grand View, LH Welcome Center; Replacement cycle every 3-5 years Cybersecurity 125,000 125,000 125,000 125,000 125,000 125,000 125,000 Annual 'Investment in cybersecurity, to keeps up with the ongoing changes that are required to maintain a safe and secure computing environment (previously budgeted in software licensing); 2023: Includes additional firewall purchase; Annual 'Investment in cybersecurity, to keep up with the ongoing changes that are required to maintain a safe and secure computing environment (previously budgeted in software licensing) - $125k Software Licensing 865,000 865,000 865,000 890,950 917,679 945,209 973,565 Annual software licensing and support for town wide systems (3% Annual Increase) Hardware Purchases 75,000 75,000 75,000 85,000 85,000 85,000 85,000 2024-2028: Workstation replacements (20-25 per year) Website and e-commerce 70,000 70,000 70,000 67,500 157,500 67,500 67,500 2024-2028: Annual website maintenance ($60K); 2024: New Website ADA Compliance Tool Implementation ($10K); 2025-2028: Website ADA Compliance Tool Continuation ($7,500); 2026: Placeholder to reevaluate current system and assess the need to upgrade ($90k) Fiber Optics / Cabling Systems in Buildings 50,000 795,626 795,626 50,000 50,000 50,000 50,000 2024-2028: Repair, maintain & upgrade cabling/network Infrastructure ($50K); 2024: Re-appropriate funds towards ongoing construction costs for network upgrade ($595.6K); Increase for higher than expected engineering costs ($150K) Network upgrades 150,000 150,000 150,000 150,000 125,000 50,000 50,000 Computer network systems - replacement cycle every 3-5 years ($50K); Additional labor costs related to network replacement ($15K); Annual Computer network systems - replacement cycle every 3-5 years Data Center (Computer Rooms)150,000 150,000 150,000 150,000 150,000 150,000 150,000 2024-2028: $150K data center maint Data Center equipment replacement 1,750,000 1,750,000 1,750,000 - - - - 2024: Replacement of data center main stacks ($1.75M) Broadband (THOR)110,000 110,000 110,000 125,000 125,000 125,000 125,000 2024-2028: Annual Broadband Expenses Business Systems Replacement - 90,000 90,000 30,000 100,000 30,000 - 2024: Re-appropriate funds for HR performance management system ($17.5K) and budget software ($40K); Budget software price increase funded with 2023 savings from other business systems ($32.5K) 2025/2027: $30K every other year for parking system upgrades; 2026: Placeholder for Business System Replacements ($100k) Total Technology 3,525,000 4,360,626 4,360,626 1,823,450 1,935,179 1,702,709 1,701,065 Public Safety Public Safety System / Records Mgmt. System (RMS) - - - 660,000 - - - Town's portion of Dispatch Records Management system Public Safety IT Equipment 40,000 40,000 40,000 35,000 35,000 35,000 35,000 Annual Maint/Replacement of PD IT Equipment including patrol car and fire truck laptops and software used to push information to TOV and other agencies; TOV portion of annual Intergraph software maintenance; ; Annual Maintenance/Replacement of PD IT Equipment including patrol car and fire truck laptops and software used to push information to TOV and other agencies; Public Safety Equipment 140,600 188,963 188,963 140,600 117,000 117,000 117,000 Axon body camera system ($125K in 2024-2025; $102K in 2026-2028); Flock LPR Cameras ($15K annually); 2024: Reappropriate Acquisition of two police K9s ($41.0K) and associated vehicle modifications ($7.4k) Terradyne Public Safety Vehicle 145,000 145,000 145,000 - - - - 2024: $145,000 for the Town of Vail contribution towards the acquisition of a terradyne armored vehicle by the Eagle County Special Operations Unit (Maintenance cost to be funded by the Town of Avon) 61 2024 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND Fire Safety Equipment - - - 45,000 51,000 368,000 230,000 2025: $45K knox box system replacement/upgrade; 2026: $16K drone expansion; $35K Extrication Equipment; 2027: Self Contained Breathing Apparatus Replacement ($368k); 2028: Heavy Hydraulic Extrication Equipment Replacement ($130K); Special Rescue Trailer Replacement ($50K); Fire Hose Replacement ($50K) Thermal Imaging Cameras - - - - 15,000 - 15,860 For the purchase of 3 cameras (2019,2020,2022) which will allow firefighters to see through areas of smoke, darkness, or heat barriers; 2026/2028: Placeholders for thermal camera replacement ($15K) Event Equipment - 6,007 6,007 - - - - 2024: Purchase of additional storage container for Santa's Village ($6.0K) Radio Equipment replacement/expansion 720,000 - - 1,020,000 - - - Replacements of radios for PW, PD and Fire (approximately every 5 years); 2024: Defer fire department radio replacement to 2025 Fire Truck Replacement - 1,723,309 1,723,309 - - 1,030,000 - 2024: Re-appropriate remaining costs for Type 3 Engine Upfitting ($19.2K), Aerial Apparatus Upfitting ($760.4K); Re- appropriate Enforcer Aerial Ladder Truck received in 2024 ($936.3K); 2027: E3 Regular Fire Engine Replacement ($1.0M) Total Public Safety 1,045,600 2,103,279 2,103,279 1,900,600 218,000 1,550,000 397,860 Community and Guest Service Children's Garden of Learning Temporary Facility Relocation - 32,248 32,248 - - - - 2024: Re-appropriate $32.2K towards ongoing gutter and heat tape repairs and replacements Loading and Delivery Capital - 126,815 126,815 - - - - 2024 includes 3 club car purchases, in addition to the four purchased in 2023 Energy Enhancements 52,500 114,130 114,130 110,000 138,000 264,000 200,000 2024-2028: Installation of EV stations to meet increased demand. There is potential for grants to offset the initial capital cost of the equipment and installation; 2024: Re-appropriate funds for Public Works Shop EV Chargers and electrical service upgrade ($61.6K) Pedestrian Safety Enhancements - 366,213 366,213 200,000 2,000,000 - - 2024: Re-appropriate $16K for lighting crossing at Safeway; $350K Construction of RRFB Pedestrian Crossing at Safeway; 2025/2026 Pedestrian Improvements through Main Vail Underpass Bollard Installation Project - 483,536 483,536 - - - Installation of retractable and standard bollards throughout the Vail & Lionshead Villages and Ford Park ($650K) offset by $250K MMOF Grant in 2023; Re-appropriate funds for ongoing bollard installation project less $45K in funds shifted to loading and delivery project ($483.5K) Civic Area Redevelopment- Dobson - 3,896,275 3,896,275 50,350,000 - - - 2024: Re-appropriate funds for ongoing Dobson Redevelopment project ($3.9M); 2025: Placeholder for Civic Area Redevelopment / Dobson Underground Utility improvements 1,700,000 4,187,838 4,187,838 - - - - 2024: Underground HCE from Main Vail to East Vail in conjunction with fiber conduit ($1.7M) offset by reimbursement above; Re-appropriate unspent 2023 funds towards project ($2.5M) Guest Services Enhancements/Wayfinding - 759,416 759,416 - 800,000 1,200,000 1,200,000 2024: Re-appropriate funds to complete wayfinding signs project ($8.1K); Re-appropriate ongoing parking and transit signage update project ($751.3K); 2026: VMS Replacements; 2027: Updated Wayfinding Signage Program Electric Vehicle Pilot Program - 78,615 78,615 - - - - 2024: Re-appropriate purchase of Ford F150 lightning for pilot testing. Vehicle Expansion 133,000 326,815 326,815 - 60,000 - - 2024: 2 PD take-home vehicles, final stage of program implementation ($133k); 2026: Additional Vehicle for Deputy Chief of Community Risk Reduction Position ($60k) Total Community and Guest Service 1,885,500 10,371,901 10,371,901 50,660,000 2,998,000 1,464,000 1,400,000 Total Expenditures 17,390,600 48,621,588 48,621,588 63,008,850 18,815,763 16,980,140 15,006,300 Dobson Financing Sources (Uses) Transfer from VRD - - - - 3,000,000 - - Estimated contribution from VRD for ice system Transfer from RETT/GF - - - - 1,762,546 - - $1.0M from GF; $762.0K RETT Transfer from Vail Reinvestment Authority 200,000 4,541,840 4,541,840 4,636,681 - - - 2024: Re-appropriate transfer from VRA for Dobson renovation ($3.8M); Children's Garden of Learning Relocation ($32.2K); Frontage Road Enhancements ($220.1K); Lionshead Streetscape/Snowmelt Repairs ($250.0K); 2025/2026: Improvements to S. Frontage Rd Medians ($200K); 2025 - 2028: Dobson Dobson COP Proceeds - - - 24,730,000 - - - Assumption: VRA Dobson financing proceeds Total Dobson Financing Sources (Uses)200,000 4,541,840 4,541,840 29,366,681 4,762,546 - - Other Financing Sources (Uses) Debt Service Payment (1,158,592) (1,158,592) (1,158,592) (1,070,650) (1,529,500) (1,153,620) (1,200,000) Annual Debt Payment for PW Shops; Debt Payment for PW Shops Transfer to Housing Fund (2,500,000) (2,500,000) (2,500,000) (2,500,000) (2,500,000) (2,500,000) (2,500,000) 2024-2028: $2.5M Transfer to Housing Fund for Vail InDeed program Transfer from Marketing Fund - 6,007 6,007 - - - - 2024: Re-appropriate transfer from the Marketing Fund for Kringle Krossing Storage Container Transfer from General Fund - 48,363 48,363 - - - 2024: Re-appropriate Transfer from Police Seizure Funds to cover K-9 acquisitions ($41K) and K9 Vehicle mods (7K); 2025: Transfer from General Fund towards Dobson Total Financing Sources and Uses (3,458,592) 937,618 937,618 25,796,031 733,046 (3,653,620) (3,700,000) 62 2024 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND Revenue Over (Under) Expenditures (841,817) (20,223,890) (19,432,686) (17,898,838) 5,737,783 1,810,521 1,065,728 Beginning Fund Balance 49,660,965 49,660,965 49,660,965 30,228,279 12,329,441 18,067,224 19,877,745 Ending Fund Balance 48,819,148 29,437,075 30,228,279 12,329,441 18,067,224 19,877,745 20,943,473 63 2024 2024 Amended Forecast 2025 2026 2027 2028 Revenue Real Estate Transfer Tax 7,000,000$ 7,700,000$ 7,500,000$ 7,575,000$ 7,651,000$ 7,728,000$ 2025 flat; 2026-2028 2.0% annual increase Golf Course Lease 175,151 175,151 176,903 178,672 180,458 182,263 Annual lease payment from Vail Recreation District; Rent income funds the "Recreation Enhancement Account" below; Annual lease payment from Vail Recreation District; annual increase will be based on CPI; New rate effective 2020 with lease signed in 2019; Rent income funds the "Recreation Enhancement Account" below Intergovernmental Revenue 850,960 850,960 30,000 30,000 30,000 30,000 2024-2028: $30K lottery proceeds used annual for park projects; 2024: $240K CDPHE Grant for water quality projects; 2024: Re- appropriate Eco Trails Reimbursement for Dowd Junction ($150.0K) and remaining ERWSD Reimbursement for Dowd Junction ($312.2K); Re-appropriate remaining CDPHE Water Quality Grant ($22.9K); Re-appropriate unused potion of CPW Bear Education Grant ($10.8K); Eagle County reimbursement for wildfire risk reduction ($55.0K); Reimbursement from the Vail Recreation District for the Golf Course Stormwater Study ($30.0K) Project Reimbursements 75,000 75,000 - - - - 2024: Evergreen Redevelopment Project Reimbursement for Middle Creek Restoration Fund ($75K) Donations 30,000 30,000 - - - - 2024: Logan donation towards Artist in Residency sculpture acquisition Recreation Amenity Fees 10,000 10,000 10,000 10,000 10,000 10,000 $10K annually Bag Fees 97,800 97,800 50,000 50,000 50,000 50,000 2024: Re-appropriate utilization of bag fee towards recycling center catwalk replacement ($9.0K); Utilize bag fees for Zero Hero Waste Program ($38.8K) Earnings on Investments and Other 68,667 68,667 211,375 45,219 30,783 28,970 2024-2028: 0.7% return assumed Total Revenue 8,307,578 9,007,578 7,978,278 7,888,891 7,952,242 8,029,233 Expenditures Management Fee to General Fund (5%)350,000 350,000 375,000 378,750 382,550 386,400 5% of RETT Collections - fee remitted to the General Fund for administration; Increase based on YTD collections ($30K); 5% of RETT Collections - fee remitted to the General Fund for administration Wildland Forest Health Management 725,415 725,415 730,186 766,695 805,030 845,281 Wildland Operations; 2024: Personnel and supply costs reimbursed by Eagle County for wildfire risk reduction ($30.0K) Wildland Fire Equipment - - - - 13,000 53,800 2027: Wildland hose ($13.0K); 2028: VHF radio replacement ($53.8K) Wildfire Mitigation 35,000 35,000 10,000 10,000 10,000 10,000 2024-2028: $10K annually to support wildfire mitigation projects as identified in the 2020 Vail Community Wildfire Protection Plan; Burn prep and fuels reduction on Bald Mountain Road funded by Eagle County($25.0K) Fire Free Five - Rebate Program 173,189 173,189 100,000 - - - 2024-2025: $100K annually for the Fire Free Five Community Assistance Program provides funding to community members for the implementation of defensible space within the first five feet of the building; 2024: Re-appropriate remaining funds towards ongoing Fire Free Five rebate program ($73.2K) Wildland Fire Shelter - - - 17,500 - - 2024: Wildland shelter safety device; Deferred to 2026; 2026: Placeholder for wildland shelter safety Fire Free Five - TOV Implementation 80,000 80,000 - - - - 2024: $50K Continuation of Fire Free Five at TOV facilities; Re-appropriate $30K towards ongoing Fire Free Five projects Total Wildland 1,013,604 1,013,604 840,186 794,195 828,030 909,081 Parks Annual Park and Landscape Maintenance 2,377,001 2,377,001 2,402,635 2,448,311 2,474,714 2,521,760 Annual: Ongoing path, park and open space maintenance, project mgmt. Includes trail host program ($20K) Park / Playground Capital Maintenance 219,000 219,000 186,500 169,000 170,000 169,000 2024: Re-appropriate funds towards improvements of deteriorating wooden structures at Sunbird Park ($40.0K) Tree Maintenance 125,000 125,000 85,000 85,000 85,000 85,000 Annual on going pest control, tree removal and replacements in stream tract, open space, and park areas Street Furniture Replacement 107,000 107,000 35,000 35,000 35,000 35,000 2024: $72K to replace blue Covid picnic tables with a more aesthetically pleasing option Village Art Landscape Enhancements 25,000 25,000 - - - - 2024: Re-appropriate funds for the planting bed at Squash Blossom on Bridge Street ($25K) Stephens Park Safety Improvements 19,904 19,904 - - - - 2024: Re-appropriate funds for remaining equipment cost ($4.9K); Installation of a split-rail fence between park and frontage road ($15.0K) Ford Park- Betty Ford Way Pavers 50,000 50,000 - - - - 2023: $116K for remaining project costs under contract; Construction of new concrete unit paver roadway, new steel guardrail, stream walk intersection improvement, and landscaping improvements. This project would be coordinated with BFAG; 2024: Re- appropriate funds towards grading and landscape final touch up at streamwalk entrance and guardrail ($50.0K) Ford Park Enhancement: Priority 3 Landscape area 5,946 5,946 - - - - 2024: Re-appropriate $5.9K towards on-going landscape repairs and plant material replacement Ford Park Lower Bench Turf/Irrigation - - 300,000 - - - 2025: $300K Replacement of worn turf grass area and inefficient irrigation system TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE REAL ESTATE TRANSFER TAX FUND 64 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE REAL ESTATE TRANSFER TAX FUND Ford Park Playground Improvements 497,804 497,804 - 300,000 - - 2024: Completion of safety improvements to the Ford Park play area; Re-appropriate $229.8K to go towards safety improvements at Ford Park playground Ford Park Picnic Shelter - - - 350,000 - - 2026: Replace Ford Park picnic shelter Ford Park Master Plan Capital Design 200,000 200,000 - - - - 2024: Design for ADA compliant routes and Tennis Center renovation Turf Grass Reduction 150,000 150,000 - - - - 2024: Continuation of Turf Grass Reduction projects at Main Vail and West Vail Roundabouts and Municipal Building Playground Restroom Replacements - - - - 400,000 - 2027: Replace modular restroom building at Bighorn Park Donovan Park Improvements 20,000 20,000 - - - 2024: Re-appropriate funds to complete rock garden renovations ($20.0K) Willow Park Drainage Improvements - - - 125,000 - - 2026: Improvements to drainage and inefficient irrigation system Pirateship Park Improvements 300,000 300,000 - - - - 2024: Safety improvements: replace wood siding and add climber Donovan Park Playground Safety Improvements - - - 275,000 - - 2026: Replace decks, worn equipment , etc. Gore Creek Promenade Rehabilitation 368,897 368,897 750,000 - - - 2025: Planning, design, and rehabilitation of the Gore Creek Promenade caused by excessive guest visitation. Project would include expansion of heated paver walkways, ground-level wood picnic deck, artificial lawn area, landscape enhancements, and a stream walk connection to the Covered Bridge Pocket Park (Deferred from 2023); 2024: Re-appropriate funds for ongoing project; design work for this project to take place in 2024 ($409K); Shift funds to clean steps between Children's Fountain and Gore Creek Promenade ($40.0K) Steps between Gore Creek Promenade and Children's Fountain 40,000 40,000 - - - - 2024: Tree removal and landscaping on steps from Children's Fountain to Gore Creek Promenade ($40.0K) Lionshead Skate Park Capital Maintenance - - 50,000 - - 2025: Replacement of Lionshead skate park fencing ($50K) reimbursed by the Vail Reinvestment Authority Slifer Fountain Feature Four Repair 75,000 75,000 - - - - 2024: Repair plumbing leak in feature supply line in Slifer Plaza ($75k) Buffehr Creek Park Safety Improvements - - - - - 400,000 2028: Replacement 20-yr old playground equipment with custom build deferred from 2025 to 2028 Ellefson Park Safety Improvements - - - - 350,000 - 2027: Replacement 15-yr old playground equipment with custom build (deferred from 2025 to 2027) Total Parks 4,580,552 4,580,552 3,809,135 3,787,311 3,514,714 3,210,760 Rec Paths and Trails Rec. Path Capital Maintenance 175,000 175,000 85,000 85,000 85,000 85,000 Annual Capital maintenance of the town's recreation path system ($85k); 2024: Recreation path improvements ($65k); 2024: Re- appropriate funds towards shouldering improvements ($25K) Recreation Path Safety Improvements 75,000 75,000 - - - - 2024: Design of recreation path safety improvements ($75K) Bike Safety 10,000 10,000 10,000 10,000 10,000 10,000 $10K annual cost for bike safety programs Bike Path Signage 46,081 46,081 - - - - 2024: Re-appropriate funds towards replacement of bike wayfinding signage, striping, and etiquette signage town-wide Pedestrian Bridge Projects 882,988 882,988 - - - 400,000 2024: $550K for pedestrian overpass; Re-appropriate $333.0K for pedestrian overpass rehab Gore Valley Trail Reconstruction - - 80,000 - 80,000 - 2025/2027: Placeholders for Gore Valley Trail Maintenance East Vail Interchange Improvements 204,543 204,543 - - - - 2024: Re-appropriate funds for development of a landscape improvement plan due to landscaping and drainage issues ($204.6K) Dowd Junction repairs and improvements 817,663 817,663 - - - - 2024: Re-appropriate funds for ongoing restabilitzation of Dowd Junction retaining wall ($817.7K) Portalet Enclosures 53,130 53,130 - - - - Re-appropriate funds for installation of screens received in 2023 ($8.1K) Booth Lake Trailhead Parking Restroom 2,500 2,500 - - - - 2024: Re-appropriate funds for final landscaping costs ($2.5K) Total Rec Paths and Trails 2,266,905 2,266,905 175,000 95,000 175,000 745,000 Recreational Facilities Golden Peak Pickleball Sound Barriers 1,498 1,498 - - - - 2024: Re-appropriate funds for purchase of remaining panels ($1.5K) Nature Center Operations 112,654 112,654 116,033 119,514 121,905 124,343 Nature Center operating costs(Contract with Walking Mountains) Nature Center Capital Maintenance 8,064 8,064 26,291 4,990 14,098 - 2024: path and walkway repairs ($8.1K); 2025: signage ($16.6K); regravel access road ($9.8K); 2026: benches and tables; 2027: Slope roofing ($14.1K); Nature Center Redevelopment 383,522 383,522 - - - - 2024: Re-appropriate $383.5K for further planning and design for a nature center remodel; Nature Center Construction is currently unfunded Total Recreational Facilities 505,738 505,738 142,324 124,504 136,003 124,343 65 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE REAL ESTATE TRANSFER TAX FUND Environmental Environmental Sustainability 814,006 814,006 865,857 909,150 975,608 1,002,338 2024: Annual operating expenditures for Environmental department (4.25 FTEs); includes $50K for hard-to=recycle events, professional dues to organizations such as CC4CA, Climate Action Collaborative, etc.; $14k sustainability intern, $14K Waste Education intern; $14K Water Quality Intern; 2024: Eliminate one intern position and use savings towards a transfer to General Fund to increase budget and scope of Destination Stewardship Management Plan ($13.5K reduction); Clean-up day volunteer incentives ($2.9K) Recycling and Waste Reduction Programs 200,400 200,400 100,275 105,289 110,553 116,081 2024: Continue Compost Residential Expansion ($15k); Love Vail Website ($8k); Recycling and Composting Hauls to Eagle County ($25k); Recycling Compliance and Education ($7.5k); Actively Green ($40k); Re-appropriate funds towards business compost program funds ($24.0K), residential compost program funds ($24.0K), and ball cup program funds ($12.1K); $6.0K in additional funding for ball cup order of 12oz cups; Continuation of Zero Hero Waste program ($38.8K) - Funded through bag fees Recycling Center Catwalk Replacement 16,500 16,500 - - - - 2024: Re-appropriate catwalk replacement at recycling center ($16.5K) - Funded with $9K of bag fees Ecosystem Health 609,017 609,017 235,218 246,979 259,328 272,294 2024: CC4CA Retreat Host Community ($18k); Open Lands Plan Implementation ($32k); Strategic Plan Rollout / Completion ($10k); Sustainable Destination Recertification & Fees ($20k); Sustainable Destination Reporting, Travel, Program ($25k); USFS Front Ranger Program ($29k); Wildlife Habitat Improvements, Wildlife Forum ($100k); Re-appropriate funds towards Dowd Junction Safe Passage Study partnership with CDOT ($175.0K), wildlife habitat improvements ($100.0K), biodiversity study ($50.0K), and ongoing Protect Wildlife bear campaign ($36.8K); additional funds for ongoing Protect Wildlife bear campaign ($13.2K) Energy & Transportation 137,500 137,500 102,375 107,494 112,868 118,512 2024-2028: Energy Smarts ($40K); Sole Power ($5K); Sole Power App ($50K); Greenhouse Gas Inventory ($25K); Energy-related education and outreach ($2.5K); 2024: Car share feasibility study ($15.0K) E-Bike Programs 243,000 243,000 255,150 267,908 281,303 295,368 E-Bike Share$225K; E-Bike Ownership program ($18K); $15K for E-Bike Rebate program E-Bike Share Infrastructure 14,711 14,711 - - - - E-Bike Share Infrastructure- Gravel pads and bike racks; 2024: Re-appropriate funds for additional gravel pads and bike racks ($14.7K) Streamtract Education/Mitigation 30,000 30,000 30,000 30,000 30,000 30,000 2024 - 2028: Annual streamtract education programming such as "Lunch with Locals" landscape workshops ($50k), City Nature Challenge and storm drain art Water Quality Infrastructure 195,007 195,007 - - - - 2024: Re-appropriate funds for ongoing water quality infrastructure project ($195.0K) Water Quality Maintenance 350,000 350,000 216,300 222,789 229,473 236,357 2024-2028: Annual cleaning and draining of frog gutter bins ($150k) and water quality vaults ($60k); 2024: Placeholder for updated water quality study ($75K); 2024: Increase in cost of cleaning of frog gutter bins and water quality vaults based on higher-than- expected spring-time cleaning costs ($35K); Increase in cost for golf course water quality study, offset by reimbursement from VRD ($30.0K) Streambank Mitigation 35,000 35,000 - - - - 2024: Re-appropriate funds for streambank planting project ($35K) Middle Creek Restoration Fund 75,000 75,000 - - - - 2024: The Evergreen redevelopment project is required to provide a restoration plan for Middle Creek. The property is owned by the Town of Vail. The Town will fund the restoration plan and be reimbursed by the developer (reimbursement included above) Private Streambank Mitigation Program 80,000 80,000 50,000 50,000 50,000 50,000 2024 - 2028: Private Streambank Mitigation Program Booth Heights Open Space 18,778,754 18,778,754 - - - - 2024: Re-appropriate acquisition of Booth Heights parcel for open space ($17.6M); Increase acquisition cost for additional legal fees ($1.1M) Gore Creek Interpretive Signage 222,165 222,165 - - - - 2024: Re-appropriate funds towards ongoing project ($190.5K); New request of $32K for Gore Creek signage using savings from the 2023 streambank restoration project for increased costs Energy Efficiency Performance Contract 150,000 150,000 - - - - 2024: Placeholder for an energy audit to facilitate an Energy Efficiency Performance Contract. Welcome Center Educational Displays - - - 150,000 - - 2026: Placeholder to update Welcome Center displays ($150k) Total Environmental 21,951,060 21,951,060 1,855,175 2,089,608 2,049,133 2,120,950 Art Public Art - Operating 188,525 188,525 197,951 207,849 218,241 229,153 2024 - 2028: Art in Public Places programming and operations Public Art - General program / art 173,167 173,167 60,000 60,000 60,000 60,000 2024: Re-appropriate funds to purchase sculptures, artwork, art programs and events ($423.2K); Utilize funds for Art Space Studio construction ($360K); Logan donation towards Broel sculpture acquisition- see corresponding revenue above; 2024-2028: Annual funds purchase sculptures, artwork, art programs and events; remainder is re-appropriated each year to accumulate enough funds. ($60k) Public Art - Winterfest 79,383 79,383 30,000 30,000 30,000 30,000 2024: Re-appropriate donated funds towards 2024 Winterfest program; 2024-2028: $30K Winterfest budget. 66 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE REAL ESTATE TRANSFER TAX FUND Seibert Memorial Statue- Maintenance 11,692 11,692 - - - - 2024: Re-appropriate donated funds towards upkeep of sculpture ($11.7K) Art Space 1,420,375 1,420,375 - - - - 2024: Re-appropriate funds towards construction of Art Space Studio in Ford Park ($760.4K); $660K cost increase funded by $360K of General Program Art Funds and $300K of 2023 RETT savings Artist In Residency - Operating 30,000 30,000 62,500 62,500 62,500 62,500 2024 - 2028: Operating costs for artist in residency program utilizing the new Art Space Artist In Residency - Capital Art Acquisitions 20,000 20,000 37,500 37,500 37,500 37,500 2024 - 2028: Capital art acquisition costs associated with artist in residency program. Total Art 1,923,142 1,923,142 387,951 397,849 408,241 419,153 Community Council Contribution: Betty Ford Alpine Garden Support 79,195 79,195 76,142 76,142 76,142 77,665 Annual operating support of the Betty Ford Alpine Gardens; annual increase to follow town's general operating annual increase Council Contribution: Eagle River Watershed Support 42,000 42,000 42,840 42,840 42,840 43,697 Annual support of the Eagle River Watershed Council programs Council Contribution: Trail Alliance 17,500 17,500 - - - - 2024: Adopt A Trail Council Contribution for trails in or bordering the Town Total Contributions 138,695 138,695 118,982 118,982 118,982 121,362 VRD-Managed Facilities & Maintenance Recreation Enhancement Account 539,321 539,321 176,903 178,672 180,458 182,263 Annual rent paid by Vail Recreation District; to be re-invested in asset maintenance; 2024: Re-appropriate funds to be re-invested in maintenance ($354.9K); Additional $9.3K for lease payment collected over budget Recreation Facility Maintenance 22,000 22,000 22,000 22,000 22,000 22,000 2023: Reappropriate $22K for contingency; Annual $22K for general RETT facility maintenance; ; Annual $22K for general RETT facility maintenance Synthetic Turf Replacement 472,000 472,000 - - - - 2024: Re-appropriate funds towards synthetic turf replacement ($472K) Golf Clubhouse 12,484 12,484 131,323 64,060 - 58,319 2024: Heat tape replacement ($13.7K); 2025: circulation pumps ($98.0K), clubhouse parking lot mill & overlay ($23.9K), clubhouse signage ($9.4K); 2026: Stucco/stone ($37.3K), wood trim ($26.8K); 2028: Clubhouse exterior door replacement ($32.2K), Clubhouse parking lot mill & overlay ($26.2K) Athletic Field Restroom/Storage Building 1,000,000 1,000,000 - - - - 2024: Re-appropriate $1.0M for the replacement of existing restroom/concession with new 2000 sq. ft. restroom/storage building. Golf Course - Other 432,069 432,069 3,954 237,660 169,325 33,359 2024: Maintenance building Gas Fired Heater ($6.5k); Maintenance building overhead radiant heating ($12.9k); Maintenance building wood privacy fencing ($2.7k); 2024: Re-appropriate $410K for completion of golf course projects; 2025: Maintenance building asphalt driving and parking area; 2026: Maintenance building streambank restoration ($234.1K) exterior doors ($3.5K); 2027: Split costs: 1st hole path planking ($77.6K); 1st hole bridge planking and stone veneer ($53.4K); 2nd hole bridge planking ($14.2K), 11th hole ped bridges ($18.9K); 2028: Maintenance building stucco ($25.2K), Maintenance building asphalt ($4.7K), Maintenance building wood privacy fencing ($3.4K) Drainage Improvements & Fence near Golf Maintenance Building 295,410 295,410 - - - - 2024: Drainage and grading improvements and fence repair near golf maintenance building ($295K) Dobson Ice Arena 643,731 643,731 118,815 - - - 2024: Wood trim repairs ($11.3), chemical feed system repairs ($6.0K); 2025: Boiler and circulation system ($77.2K), Water filtration issues ($27.6K); Exhaust Stacks ($3.7K); 2024: Re-appropriate funds towards repairs not completed in 2023 ($626.4K) Ford Park / Tennis Center Improvements 150,854 150,854 54,166 1,462,552 - - 2024: Furnace, hot water tank, baseboards replacement ($13.3K); Re-appropriate funds towards incomplete projects ($137.6K) 2025: Wood siding and windows ($54.2K); 2026 includes a rebuild of tennis courts, retaining walls, and court fencing Athletic Fields 116,547 116,547 99,319 - 26,704 - 2024: Asphalt parking lot repairs ($9.3K); Re-appropriate grading and drainage repairs ($108.2K); 2025: Asphalt parking lot ($99.3K); 2027: Asphalt parking lot repairs ($11.1K), wood structure paint ($9.3K), wood trim, post, & beam repair ($6.2k) Gymnastics Center 219,399 219,399 59,041 - - - 2024: Re-appropriate ongoing repairs from 2023 ($354.9K); 2025: Furnace ($27.6K), Elevator ($27.6K); concrete stairs and walkways (3.0K); Total VRD-Managed Facilities & Maintenance 3,903,815 3,903,815 665,520 1,964,944 398,487 295,941 Total Expenditures 36,633,511 36,633,511 8,369,273 9,751,143 8,011,139 8,332,990 67 2024 2024 Amended Forecast 2025 2026 2027 2028 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE REAL ESTATE TRANSFER TAX FUND Other Financing Sources (Uses) Transfer to CPF - - (762,546) - - - Transfer to CPF for Dobson Transfer from/(to) General Fund for Booth Heights 3,562,500 3,562,500 (200,056) (200,056) (200,056) (200,056) Payback of funds for Booth Heights acquisition costs over 20 years, 2024-2043 - $5.64M; 2024: Re-appropriate transfer of a loan from the General Fund for the acquisition of the Booth Heights Parcel ($5.6M) Transfer from/(to) General Fund - Other (10,620) (10,620) - - - - 2024: Transfer to General Fund for increase in budget and scope of Destination Stewardship Management Plan; Transfer from General Fund for Clean-Up Day volunteer incentives Revenue Over (Under) Expenditures (24,774,053) (24,074,053) (1,353,598) (2,062,308) (258,954) (503,813) Beginning Fund Balance 31,887,550 31,887,550 7,813,497 6,459,899 4,397,591 4,138,637 Ending Fund Balance 7,113,497$ 7,813,497$ 6,459,899$ 4,397,591$ 4,138,637$ 3,634,825$ 68 TOWN OF VAIL 5-YEAR PLAN SUMMARY OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE HOUSING FUND 2024 2024 2024 Budget Amended Forecast 2025 2026 2027 2028 Revenue Housing Sales Tax 4,950,000$ 4,950,000$ 4,950,000$ 4,949,999$ 5,049,000$ 5,150,000$ 5,253,000$ Reimbursement from CPF for North Trail Townhome Unit D (TOV unit)308,799 Transfer in from Capital Projects Fund 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Workforce Housing Sales 1,100,000 1,100,000 Lionsridge purchase 5,000,000 Total Revenue 7,450,000 8,550,000 8,858,799 12,449,999 7,549,000 7,650,000 7,753,000 Expenditures Housing Programs InDeed Program 2,500,000 3,019,645 3,019,645 1,500,000 2,500,000 2,500,000 2,500,000 Buy Down Housing 106,891 106,891 Timber Ridge Unit Purchase 25,449,948 Brown Residence 2,275,000 Future Purchases 1,500,000 1,500,000 Pitkin Creek Unit #14A 4,000 4,000 Pitkin Creek Unit #3B 785,444 785,444 Construction Housing Projects Timber Ridge Redevelopment 80,920 80,920 Timber Ridge Habitat Contribution 2,000,000 W. Middle Creek Development 3,892,046 3,892,046 W. Middle Creek Development Legal Fees 50,000 50,000 Residences at Main Vail Opportunity Fee 50,000 50,000 Land Purchases for future Housing CDOT Parcel Acquisition Placeholder 5,920,000 5,920,000 Eagle-Vail Parcel Placeholder 50,000 50,000 Total Expenditures 2,500,000 15,458,946 15,458,946 5,775,000 27,949,948 2,500,000 2,500,000 Operating Income 4,950,000 (6,908,946) (6,600,147) 6,674,999 (20,400,948) 5,150,000 5,253,000 Other Finance Sources (Uses Loan from GF for TR units 13,721,299 (13,721,299) Transfer to Timber Ridge- Site and Podium (9,000,000) (9,093,105) (10,464,365) 11,647,849 Transfer to Timber Ridge- CDOT Land Acquisition (1,715,000) (1,715,000) 1,715,000 Total Other Finance Sources (Uses)(9,000,000) (10,808,105) (12,179,365) - 13,721,299 (358,450) - Surplus (Deficit) Net of Transfers and One-Time Items(4,050,000) (17,717,051) (18,779,512) 6,674,999 (6,679,649) 4,791,550 5,253,000 Beginning Fund Balance 18,784,163 18,784,163 18,784,163 4,650 6,679,649 - 4,791,550 Ending Fund Balance 14,734,163$ 1,067,111$ 4,650$ 6,679,649$ -$ 4,791,550$ 10,044,550$ 69 AGENDA ITEM NO. 5.1 Item Cover Page DATE:August 6, 2024 TIME:15 min. SUBMITTED BY:Kristen Bertuglia, Environmental Sustainability ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion (3:30pm) SUBJECT:Energy Performance Contract - Investment Grade Audit (3:30pm) SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Kristen Bertuglia, Environmental Sustainability Director and Cameron Millard, Clean Energy Specialist VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: (V2) EPC Memo 8-06-2024 EPC Presentation Town of Vail Energy Performance Contracting Services - McKinstry Response 70 To: Town Council From: Environmental Sustainability Department Date: August 6, 2024 Subject: Energy Performance Contract-Investment Grade Audit I. PURPOSE: The purpose of this memorandum is to provide background information and present for approval the contract for the Energy Performance Contract (EPC) for the completion of the Investment Grade Audit for town and Vail Recreation District facilities. II. BACKGROUND: Energy Performance Contracting The Town of Vail has adopted strategic climate action goals including a 50% reduction in greenhouse gas emissions by 2030 and an 100% reduction by 2050. These goals can be supported through upgrades to town facilities which reduce energy consumption and save significant cost on energy bills. An Energy Performance Contracting process is a mechanism to identify, fund, and implement energy saving measures for municipal governments and is a critical tool for achieving carbon reductions in a wholistic, enterprise-wide manner. In 2010-2012 the town engaged its first Energy Services Company (ESCO) to complete a facility-wide audit, make recommendations and complete recommendations including building envelope improvements, facility lighting including both parking structures (T-12 to LED), heating and cooling mechanical systems, renewable energy and more. This process has saved the town roughly $250,000/year since implementation. Enough time has passed that another EPC will prove beneficial to updating systems, HVAC, solar and storage, electric vehicle projects, and other newer technologies such as smart building automation. Additional co-benefits of an EPC include increased comfort and air quality in municipal buildings, resiliency for power outages through solar and storage, cost savings on utility bills, and potential revenue streams from electric vehicle charging and dispatchable energy storage. Funding The 2024 municipal budget includes funding ($150,000) for the Investment Grade Audit (IGA) phase of an Energy Performance Contract. As the IGA is completed, staff will also seek grant support as projects develop. 71 Town of Vail Page 2 Colorado Energy Office The Colorado Energy Office offers significant, free, technical guidance for municipal participants in their EPC program, including a pre-approved list of Energy Services Companies (ESCOs) and technical assistance to municipal governments. The Town entered into a Memorandum of Understanding (MOU) with the Colorado Energy Office in spring, 2024, to participate in the state program. CEO on EPCs: “Energy Performance Contracting (EPC) is a creative model for funding and implementing capital improvement upgrades, which allows entities to use future cost savings to fund projects. Prior to entering an EPC, an Energy Service Company (ESCO) conducts an Investment Grade Audit (IGA) of your facilities and delivers a project proposal that includes: energy & water efficiency measures, renewable energy systems, electric vehicle technology, operations & maintenance and/or metering infrastructure improvements. Using the stream of income from cost savings or renewable energy produced, the project repays itself over the contract term.” ESCO Selection The town received nine responses by Colorado Energy Office pre-approved Energy Services Companies (ESCOs). Of those, five were short-listed and interviewed. The interview committee included members of the Environmental Sustainability department and the Public Works and Facilities team to ensure the project meets Vail-specific demands and provides competitive pricing and value to the Town. McKinstry, an ESCO based in Golden, Colorado with extensive mountain-town experience was determined best able to meet the goals set forth by the town. McKinstry demonstrated exceptional capability, experience, and value through their written response and interview. III. STAFF RECOMMENDATION Authorize the Town Manager to enter into an agreement, in a form approved by the Town Attorney, with McKinstry, for an Investment Grade Audit of town facilities in an amount not to exceed $150,000 (budgeted in 2024 for this purpose). IV. NEXT STEPS Staff will work with the ESCO to conduct the IGA portion of the EPC over the next 8-12 months and return with a proposed package of efficiency measures for Council to consider. V. ATTACHMENTS: A. McKinstry EPC Proposal 72 Vail Energy Performance Contract Update August 6th, 2024 73 What is Energy Performance Contracting (EPC)? 25yrs. 292M $52M Colorado’s EPC program began in 1997 Public buildings have achieved 292 million energy (kWh) savings Communities have realized over $52 million in annual cost savings A financing & contracting tool that allows Public entities to use future savings from energy improvements to fund capital projects $846M $846 million invested into facility improvements 74 Why Energy Performance Contracting? Town of Vail |TR vailgov.com Town of Vail Strategic Plan - Climate Action Goals: 50% reduction in GHG by 2030, 100% by 2050 ✅ EPC guarantees utility cost savings ✅ Cash flow positive ✅ Three years of Measurement and Verification ✅ Project produces savings greater than the term ($$ for town) ✅ Significant progress towards climate goals ✅ Improved quality of town facilities and other co-benefits 75 How Energy Performance Contracting Works Town of Vail |TR vailgov.com 76 5 Step Process Town of Vail |TR vailgov.com 77 Leveraging Funding Opportunities in the EPC Town of Vail |TR vailgov.com 78 Town RFP Process Town of Vail |TR vailgov.com •9 Responses Received •5 ESCOs interviewed •Standout Response by McKinstry •Deep experience with EPC and carbon reduction • Tailored approach to Vail and previous experience • Best Value • Ability to successfully implement •$100 million in successful grant awards to CO munis • Highly recommended by mountain communities 79 Staff Recommendation and Next Steps Town of Vail |TR vailgov.com •Contract with McKinstry for an Investment Grade Audit of town facilities (150K) •The IGA phase complete in 8-12 months •Final report - bundled improvements/project recommendations to Town Council 2025 •Project Implementation 2025-2026 80 together, building a thriving planet Town of Vail Energy Performance Contracting Services Vail, CO June 21, 2024 81 June 21, 2024 Attn: Cameron Millard Town of Vail Environmental Sustainability Department 75 S. Frontage Road W Vail, CO 81657 Re: Request for Proposals, Energy Performance Contracting Services Dear Mr. Millard and Selection Committee, McKinstry Essention, LLC (McKinstry) is pleased to present our response to the Town of Vail’s (the Town) for its Request for Proposals for Energy Performance Contracting Services (EPC). McKinstry is a pre-qualified Energy Service Company (ESCO) through the State of Colorado’s Energy Office. Based on McKinstry’s experience working with many municipalities throughout Colorado, we know that Energy Performance Contracting can help to further the Town’s vision to be a “recognized global leader in sustainability”. We recognize the importance of the Town’s drive to focus on addressing the global climate emergency, reducing greenhouse gas emissions, improving local resiliency, and being a climate leader in the Colorado mountain communities. This project can help to further the Town’s carbon emissions goals of 50% reduction by 2030 and 80% reduction by 2050. We are confident that we have the experience, expertise, and resources to help you meet and exceed these goals through a comprehensive and collaborative energy performance contracting (EPC) process. Based on nearly 60 years of experience that includes working with 252+ municipalities nationwide in addition to several mountain towns across Colorado such as the Town of Frisco, Town of Granby, City of Gunnison, City of Aspen, City of Steamboat, Town of Basalt and Routt County, we are confident that we can deliver the highest quality Energy Performance Contracting project for the lowest cost for the Town of Vail. WHY MCKINSTRY? Throughout our enclosed qualifications, you will notice why McKinstry is the best partner for the Town of Vail’s Energy Performance Contracting project based on the following key proven differentiators: Focus on Collaboration and True Partnerships. To drive the highest value project for your team and community, McKinstry’s team believes in collaboration, consistent and frequent communication, and forming long-term partnerships throughout our projects. With multiple stakeholders involved in this process, all of these components will be a key strategy in creating a project that best meets the Town’s specific project goals and delivers the highest quality results. McKinstry has the Largest Energy Performance Contracting ESCO Team Based in Colorado – 150+ Energy Professionals in Golden, Colorado backed by more than 2,500 Energy Experts Nationwide. We design and manage all our Colorado projects with local staff and subcontractors, leveraging specialized design, energy, commissioning, and construction expertise from our Golden, CO office. Locally owned and operated, our Colorado office has been dedicated to keeping dollars and resources within the state since 2007. Our committed local team, as outlined in the organizational chart, has the bandwidth and expertise to focus on your project throughout the proposed timeline, offering significant cost-efficiencies compared to other ESCOs that subcontract or rely on out-of-state resources. We will collaborate closely with the Town to prioritize Energy, Equity, and the Environment in our work together. 6025 TABLE MOUNTAIN PARKWAY #100 • GOLDEN, CO 80403 • 303.215.4040 • MCKINSTRY.COM 82 Jordan Worthington – Account Executive 303-656-6152 – jordanw@McKinstry.com Extensive Energy and Decarbonization Experience in High-Altitude Environments. With extensive Colorado and local government experience, McKinstry has provided over $254 million worth of energy services to the municipal market sector in the last five years, spanning 252+ cities, counties, and government agencies nationwide. Our team has partnered on local energy projects near Vail, including collaborations with the City of Aspen, Town of Basalt, and City of Steamboat, bringing valuable background knowledge and direct experience with Holy Cross in the region. Our experience in high-altitude environments is demonstrated through our work with Vail and similar mountain towns such as the Town of Frisco, City of Durango, City of Gunnison, and Town of Granby, highlighting our understanding of the unique energy challenges faced by these communities. This extensive experience enables us to tailor innovative solutions specifically addressing Vail's needs, ensuring lasting benefits for residents and visitors alike. Decarbonization lies at the heart of our expertise, and our proven track record in this domain, exemplified by our work in Steamboat, positions us as leaders in the journey toward a greener future. We recognize the importance of decarbonizing the snowmelt system and have designed our proposed solutions to align seamlessly with Vail's long-term vision for sustainability. Long Term Planning. We understand that this project may present challenges in securing funding solely through energy savings. However, we firmly believe that McKinstry is the right partner to identify alternative funding streams and help create a long-term plan for decarbonization. McKinstry has consistently demonstrated an unparalleled success rate in securing grants, particularly in rural Colorado. Our team's expertise in financial modeling and access to a diverse range of funding sources uniquely positions us to navigate these complexities and ensure the success of this project. Vision Alignment At McKinstry, our commitment to combating climate change mirrors Vail's steadfast dedication to environmental stewardship. Our shared values, coupled with our technical prowess and passion for innovation, make us the ideal partner to embark on this transformative journey together.  We thank you for the opportunity to submit our written qualifications to the Town team. We strongly encourage interviews to address specific questions or concerns and to meet our team. We greatly appreciate the opportunity to partner with the Town on an Energy Performance Contract and feel free to reach out to me with any additional questions throughout the evaluation process. Sincerely, Stephan Rank – Project Director 720-409-1925 – stephanr@McKinstry.com 6025 TABLE MOUNTAIN PARKWAY #100 • GOLDEN, CO 80403 • 303.215.4040 • MCKINSTRY.COM 83 Please note that this response provides the basic economic terms on which McKinstry would be willing to perform the scope of services outlined here. This response does not cover all of the terms and conditions relevant to a definitive agreement about these services. Nothing in this response approves legal terms such as warranties, indemnification, insurance requirements, and limitations of liability, even if those terms were included in the request for proposal. The details of those terms must be negotiated by the parties and set forth in a definitive agreement with respect to McKinstry’s services. SECTION 1 .........................................................5 MANAGEMENT APPROACH ....................................... 6 SECTION 2 .........................................................18 PROJECT APPROACH ............................................... 19 SECTION 3 .........................................................48 COST AND PRICING ................................................... 49 SECTION 4 .........................................................53 BEST VALUE ............................................................. 54 APPENDIX RESUMES Contents 84 1 Management Approach 85 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 6 1. Management Approach 1.1 Project Management and Coordination Provide ESCO’s organization chart (by name as available) for implementing and managing the proposed project, including the title of each individual shown and the lines of authority within the overall organization. Identify portions of the effort, if any, that are proposed to be subcontracted and provide the same information for subcontractor organization and personnel. DEDICATED, LOCAL COLORADO TEAM We are committed to assigning a dedicated team of local Golden, CO-based energy professionals who understand Vail's needs. They will assess facilities for lighting, energy, and water efficiency upgrades, renewable energy systems, MEP, and electric vehicle upgrades to develop and implement a successful investment grade audit and energy performance contract with ongoing support. Our experienced project directors, construction managers, and engineers foster a collaborative atmosphere, working closely with Vail personnel, facilities managers, the Colorado Energy Office, utilities, and subcontractors to exceed Vail's goals and maintain high-level operations post-construction. Typically, we do not use subcontractors for our audits, but when necessary, we prioritize local Vail subcontractors to support the local economy. Our client-centric focus ensures Vail receives expertise at every step without multiple points of contact. Please see our organization chart on the next page. It is always a pleasure to visit Vail, whether skiing in the winter or hiking the area in the summer. The opportunity to give back through an energy & sustainability project would be a career highlight! -Stephan Rank, Project Director Stephan Rank, Our Project Director with over 29 years of energy experience, Stephan Rank, is the Town’s continuous point of contact throughout the entire project, including both the Development and Construction phases and will quarterback the team ensuring overall success and the Town’s satisfaction. I have spent many years visiting in Town of Vail and have always enjoyed the local restaurants. They are some of my favorites in Colorado.” - Crystal Davis, Construction Services Manager Crystal Davis, our Construction Services Manager with more than 20 years of experience, has led over $18M of energy project construction work in the Denver area this year. Crystal’s direct construction experience, communication, process knowledge, and familiarity with local government facilities will provide Vail with a first-class pre-construction and construction experience for this Energy Performance Contract. It was my pleasure to work with Vail’s Fleet and Facilities Management in 2020-2021 on the city-wide facilities assessment and select energy audits. It would be fantastic to re- establish partnership with Vail’s current leadership, transfer knowledge from those valuable insights gathered, and support Vail’s next set of performance goals.” -Sarah Parsons, Post-Construction Manager Sarah Parsons, our Post-Construction Manager with 20 years of industry experience, will lead operations and optimization services for Vail. Sarah leads the development and delivery of O&M, savings verifications, and ongoing building performance improvement programs that will exceed Vail’s expectations in post-construction services. It was great to work with Vail’s Environmental Sustainability team on the recent Solar & Storage Feasibility Study. Through that project, our team learned a lot about the Vail’s sustainability goals and how we might best meet them.” -Martin Beggs, Renewables Project Director Martin Beggs, our Renewables Project Director Manager with 16 years of industry experience, will pick up where he left off leading renewable development services for Vail. Martin Beggs is a NABCEP Certified PV Installation Professional who had direct involvement in the development of the Northwest Region Solar PV project that resulted in 16 solar projects being delivered by McKinstry to 8 different public sector customers across Routt and Moffat Counties. 86 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 7  1.Management Approach ORGANIZATION CHART McKinstry does a good job of hiring good, strong people to deliver a great service.” — Stu Reeves, City of Fort Collins  DEVELOPMENT  AARON SKROCH,  CEM, LEED® AP  Program Manager –  Energy Engineering  BRIAN GAMET, CEM  Director of Project  Development  JOHN DOYLE, CSLT  Project Director,  Lighting Solutions  MARTIN BEGGS, PVIP  NABCEP  Project Director,  Renewables  DESIGN  CLAY HERRIN, PE, CEM,  CMVP, CBCP, CDSM, LEED® AP  Mechanical Engineer  MAYA KADI  Design Project  Engineer  JARRED COULTER,  PE, CEM  Electrical Engineer  CONSTRUCTION  CRYSTAL DAVIS, CEM  Construction Services  Manager  ALEXA VINCI  Sr. Construction Project  Engineer   TOM ALVAREZ  Senior Safety Program  Manager  BRENDAN O’DONNELL  Director, Electric Vehicle   Charging  POST‐CONSTRUCTION  SERVICES  JAMES JOHNSON, CCP  Lead Commissioning  Engineer  JAYMES MCMULLIN,  CMVP, CEM, LEED® GA  Principal Engineer,  Ongoing Monitoring and  Compliance  LEANNE MATTHEWS,  CMVP‐IT, EIT  Program Manager  Measurement & Verification   JORDAN WORTHINGTON  Account Executive  STEPHAN RANK  Project Director  SARAH PARSONS, LEED®  AP BD+C  Post‐Construction Manager  SARA BERRY MARAIST, PE  Program Manager  Federal/State Funding  JOHN MUSSO, LEED® AP,  CEM  Site Superintendent  DAN GACNIK  Business Manager  ASHLEY BRASONVAN  Funding Specialist  BRAD LILJEQUIST   Director of Zero Carbon  Innovation & Leadership  87 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 8  1.Management Approach 1.2 Appropriate Market Sector Experience/Expertise Provide information that emphasizes ESCO’s experience and expertise in our specific market sector.  MCKINSTRY’S MUNICIPAL EXPERTISE McKinstry has partnered with and provided innovative solutions for many facility and energy projects supporting  ambitious goals including  local partners,  such as  City of  Louisville, City of  Durango, Town of Frisco,  Town  of  Grandby, Denver International Airport, Jefferson County, City of Gunnison, City and County of Denver, our first  phase  of  work  with  Vail,  as  well  as  larger  national  municipalities  such  as  the  City  of  Austin,  Phoenix,  and  Portland.  Like  Vail,  all  these  local  governments  are  leading  the  charge  on  facility  management  and  energy  practices and have pursued EPC. We are committed to working with Vail, not only to strengthen and support both  your  strategic  goals  such  as  repairing  and  maintaining  existing  infrastructure,  promoting  public  safety,  environmental health, and sustainability in a tiered approach supporting your Sustainability Action Plan, but also  to support your specific sustainability goals to be environmentally sustainable by reducing carbon emissions by  50% by 2030 and 80% by 2050. We also always strive to develop a project to serve as a model for the at‐large Vail  community.  As a company, McKinstry has a rich history of helping make positive changes within facilities. Across all markets,  McKinstry has performed over $800M nationally in energy services over the past five years. We have many clients  that have come back for multiple phases – Foothills Park & Recreational District (2), Denver Public Schools (2),  City of Boulder (4), Jefferson County (2), City and County of Denver (2), and Routt County (2) – and are proud  that our legacy clients value our relationship in terms of savings and integrity so much that they return to us year  after year to complete additional phases of ESPC work. We would love to add Vail to our list of legacy clients. As  we have mentioned previously, we are familiar with Vail’s buildings from our Solar Feasibility Study that we will leverage for your energy performance project.  The  map  below  includes  our  250+  municipal  partners  nationwide  and  highlights  our  Colorado  municipal  experience with similar, relevant facilities to Vail. We can provide contact information for any project listed  below. Our team prides itself on our long‐term relationships and client references.  88 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 9  1.Management Approach List in one table the Energy Performance Contracting projects developed and implemented by your firm in our specific market sector within the past  five years. Only include projects where work was directly conducted by your company.  PROJECT NAME FACILITY TYPE/ PROJECT TYPE CITY AND STATE PROJECT SIZE ($) SQUARE FEET YEAR COMPLETED City and County of Denver, Ph. 2 Government Denver, CO Audit in Progress 4,000,000 Ongoing  Town of Bayfield Government Bayfield, CO Audit in Progress 51,477 Ongoing  Town of Bennett Government Bennett, CO Audit in Progress 125,886 Ongoing  Town of Frisco Government Frisco, CO Audit in Progress 71,177 Ongoing  City of Henderson Government Henderson, NV $5,100,000 N/A (parks  & trails) Ongoing  City of Ogden Government Ogden, UT Audit in Progress 1,000,000 Ongoing  Huerfano County, Ph. 2 Resiliency  Remodel Government Walsenburg,  CO $2,200,000 20,000 In Final Design  City of Boulder, Phases 1‐4 Government Boulder, CO $17,000,000 1,500,000 In Construction  City and County of Denver EPC  and Community Solar Government Denver, CO $42,000,000 1,800,000 In Construction  Denver International Airport Government Denver, CO $83,000,000 8,000,000 In Construction  City of Gunnison Government Gunnison, CO $4,000,000 211,000 In Construction  City of Phoenix Government Phoenix, AZ $7,000,000 1,600,000 In Construction  City and County of Denver Government Denver, CO $16,000,000 1,800,000 In Closeout  Foothills Park & Rec. District, Ph. 2 Government Littleton, CO $8,000,000 401,256 In Closeout  Huerfano County Government Walsenburg, CO $2,400,000 157,313 In Closeout  City of Durango Government Durango, CO $5,500,000 298,200 2024  Fremont RE‐2 School Dist., Ph. 2 Government Florence, CO $7,100,000 400,000 2023  City of Louisville Government Louisville, CO $265,000 300,000 2023  Town of Vail Solar Audit Government Vail, CO $35,000 N/A 2023  City of Craig Government Craig, CO $1,100,000 100,000 2022  Town of Hayden Government Hayden, CO $1,100,000 150,000 2022  Moffat County Government Craig, CO $490,000 50,000 2022  Moffat County School District Government Craig, CO $560,000 150,000 2022  Town of Oak Creek Government Oak Creek, CO $75,000 8,000 2022  Routt County, Ph. 2 Government Hayden, CO $1,300,000 200,000 2022  City of Steamboat Springs, Ph. 2 Government Steamboat  Springs, CO $989,000 100,000 2022  Town of Yampa Government Yampa, CO $68,000 8,000 2022  City of Clearfield Government Clearfield, UT $2,000,000 153,000 2019  Jefferson County, Ph. 2 Government Golden, CO $1,600,000 533,100 2019  City of Lakewood Government Lakewood, CO $2,400,000 254,631 2019  The following pages of project profiles provide recent and relevant examples of McKinstry's work with other  similar local municipalities. 89 Project Overview in May 2019, City of Durango contracted with McKinstry to perform an investment Grade Audit (iGA) of 16 city facilities and 13 parks throughout Durango. The goal of the iGA was to investigate opportunities that led to an energy savings performance contract whereby measures would be constructed to accomplish the following: •improve City facilities •Reduce maintenance challenges •Reduce utility costs, •implement capital improvement measures •Progress the City ’s sustainability goals Through our iGA efforts and partnership with the City of Durango, McKinstry developed an ESPC project to achieve the City's goals of reducing energy use by 25% and interior water use by 18% by 2025, and generating 50% renewable energy by 2030. This includes an HVAC renovation at Carnegie Hall. The project delivers $335,224 in annual energy savings, $11,483 in operational savings, and $101,114 in utility incentives, with a total cost of $6,466,881. A $1,000,000 grant from the Colorado Department of Local Affairs offsets upfront costs, with the remainder financed by the City of Durango. The financial term is 16.2 years. CITY OF DURANGO ENERGY SAVINGS PERFORMANCE CONTRACT delivery method Design/Build Energy Performance project size 18 Buildings 13 Parks project dates 2019-2025 Contact Marty Pool Sustainability Manager 970.375.5061 marty.pool@durangogov.org 1.Management Approach RELEVANCE TO VAIL Municipality that had renewable energy and sustainability goals to accomplish and were developed through a planning process focused on asset remaining life, energy efficiency, electrification and renewable energy measures. Many of the facilities were similar to Steamboat Springs such as the airport, municipal ski hill, city hall, ice rink, and community center. THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 10 90 Project Overview in light of the Marshall Fire's devastating impact on Louisville, which destroyed 550 homes and businesses on December 30, 2021, the City accelerated its commitment to combat climate change. Having previously adopted Resolution 25-2019 and a Sustainability Action Plan, the City, shaken by the fire attributed to climate change, intensified its efforts to achieve decarbonization targets. Responding to this urgency, the City contracted McKinstry in 2022 to create a comprehensive roadmap for the electrification and decarbonization of 100% of City buildings, fleet, equipment, and operations by 2030. The roadmap, finalized in 2023, was subsequently adopted by the City Council on October 10, 2023. Scope included: •ASHRAE Level 2 Audits •Electrification studies for 10 buildings and all City fleet •Assessment of 2.5MW of renewable energy across 10 sites •Financial and grant analysis •Load reduction measure development across all 10 sites •Xcel territory program evaluation •$51M in scope identified CITY OF LOUISVILLE DECARBONIZATION ROADMAP delivery method Design/Build Energy Performance project size 10 Buildings project dates 12/2021 - 10/2023 Contact Kevin Frey Facilities Superintendent Public Works 303.335-4766 KFrey@LouisvilleCO.gov RELEVANCE TO VAIL Developed an actionable roadmap for the City's 2030 sustainability and decarbonization goals, including benchmarking, renewable energy and electrification feasibility, fleet electrification, EV charging roadmap, energy efficiency measures, resiliency, and identifying over $10M in funding and grant opportunities, with $4.7M secured. 1.Management Approach THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 11 91 Project Overview in March 2020, the northwest (nW) Colorado Regional partners contracted with McKinstry to perform a feasibility study for solar and resiliency opportunities across 15 different sites throughout the Routt County and Moffat County region. Partners within this scope included City of Steamboat, City of Craig, Moffat County, yampa Valley Regional Airport, Town of yampa, Town of Oak Creek, Moffat County School District, Mount Werner Water, and Town of Hayden. The goal of the feasibility study was to investigate opportunities to deploy ground and roof-mounted solar arrays and investigate the potential for resiliency across several different sites whereby the final scope would be ready to move into a construction phase and would accomplish the following: •Reduce energy and utility costs •improve energy reliability •increase resiliency across sites •Offset grid energy usage at each site •Progress renewable energy goals of state As a result of the feasibility study efforts, the partnership formed with the nW Colorado Regional partners with focused consideration of all of the stakeholder’s priorities. McKinstry engineered a series of arrays and resiliency solutions which were designed to meet the goals above and assembled these into a project that was constructed through an Energy Performance Contract (EPC) approach with each regional partner. ROUTT AND MOFFAT COUNTY REGIONAL PROJECT delivery method Design/Build Energy Performance project size 13 Sites project dates 03/2016 - 03/2017 Contact Winnie DelliQuadri Special Projects & intergovernmental Services Manager 970.871.8257 wdelliquadri@steamboatsprings. net RELEVANCE TO VAIL Community partnership including municipalities to improve regional resiliency and alternative energy through shared solar sites. 1.Management Approach THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 12 92 Project Overview Driven by a shared commitment to sustainability, Alterra and McKinstry have extended their partnership to create a healthier planet. Alterra, part of the Climate Collaborative Charter, is dedicated to waste reduction, renewable solutions, and impactful public policies. McKinstry's energy audit work led to an expanded collaboration, implementing Smart Thermostats and Existing Building Commissioning across Alterra's 15 resorts in north America, with an estimated $500k in annual energy savings. The initiative also involves developing Green Building Design Standards to help Alterra reduce its carbon footprint by 50% and achieve 100% renewable energy use by 2030. The ongoing project, covering 104 buildings and 4 million sq. ft., aims to reduce GHG emissions, enhance operational efficiency, pursue carbon neutrality, and set new industry standards. Scope includes: •Greenhouse Gas inventory •Energy Audits •Commissioning •Active Energy Management •Solar Feasibility Studies •Asset Management Platform ALTERRA MOUNTAIN COMPANY delivery method Design/Build Energy Performance project size 15 resorts across north America 104 buildings 4M sq. ft project dates 01/2022 - current continuing services Active Energy Management Ongoing Commissioning Green Building Standards Design Development RELEVANCE TO VAIL McKinstry teamed up with a ski industry leader to conduct energy audits across their portfolio, a solar study at Steamboat, and a Greenhouse Gas (GHG) Emissions Inventory. They are also guiding Alterra on green building design standards that support their goal to cut carbon emissions by 50% and achieve 100% renewable energy by 2030. 1.Management Approach THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 13 93 Project Overview With a rich history of ranching, agriculture, mining and outdoor recreation, the City of Gunnison is an exemplar of the Colorado spirit. As with many small communities, the City was challenged with significantly older buildings with operational inefficiencies. Their goals included reducing operating expenses, revitalizing aging facilities, enabling staff training, and developing a plan for future growth in clean energy. Partnering with McKinstry on an innovative financing approach, the City of Gunnison was able to combine electric vehicle charging station grants, and the EiAF grant to implement 150 kW of solar PV systems, comprehensive LED lighting upgrades at local recreational fields, installation of electric vehicle chargers at the community center and improve occupant wellness through HVAC replacement and mechanical retrofits at city-owned facilities. The results reduced project paybacks from 42 to 13 years and have decreased the overall GHG emissions by 19.2%. Project Highlights: •increased resiliency and electrification at Community Center Designated Emergency Shelter •Reallocates utility spend to fund upgrades •Progresses Governors 100% Renewable Energy Goal •Reduced City’s CO2 emissions by 21% •Increased City ’s EV charging capacity CITY OF GUNNISON ENERGY SAVINGS PERFORMANCE CONTRACT delivery method Design/Build Energy Performance project size 19 Buildings 211,000 SF project dates 03/2016 - 03/2017 Contact Ben Cowan Finance Director 970.641.8162 BCowan@gunnisonco.gov RELEVANCE TO VAIL Similar building profile focused on goals to reduce expenses, upgrade facilities, and future growth resiliency within an EPC model. 1.Management Approach THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES| MCKINSTRY RESPONSE | 14 94 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 15  1.Management Approach 1.3 Project Personnel and Staffing Identify each individual(s) who will have primary responsibility for the following tasks: technical analyses, engineering design, construction management, construction, training, post‐construction measurement and verification, and other services. Include a table to identify and describe the individual(s) who will have primary  responsibility for each task. Also include any added expertise and capability of staff available through other branch offices, subcontracts, etc., that you can provide.  The table on the pages below provides all necessary required information of the project team with a sampling of project experience. Percentage of time on projects will vary based on phase of project and measures that are being  investigated/implemented.  NAME & TITLE STAFF OR SUBCONTRACTOR BASE LOCATION INTENDED ROLE ON THE TOWN OF VAIL PROJECT PROJECT RESPONSIBILITY % OF TIME ON PROJECT LEVEL OF EXPERTISE RELEVANT PROJECTS IN SIMILAR ROLE* Technical Analyses Engineering Design Construction & Training Measurement & Verification Post-Const. Support Stephan Rank Project Director  Staff | Golden, CO  As Project Director, Stephan is the continuous point of  contact throughout the life of the project and will oversee  team leads on development, construction, M&V and on‐ going services. Stephan is responsible for overall client  satisfaction and project success.  80% 27 years of  industry  experience  •City and County of Denver Phase 1 EPC $16M •University of Colorado, Boulder EPC $5M •Foothills Park and Recreation EPC $8M •Aurora Public Schools EPC $7M •Adams 12 Five Star Schools EPC $2M Jordan Worthington Account Manager  Staff | Golden, CO  Works collectively with Stephan to ensure communication,  client relationship/satisfaction, and coordination is optimized  to ensure maximum understanding between Vail and  McKinstry. Jordan will also work to ensure funding,  contracting and technical scope is aligned for successful  project completion.   10‐30% 9 years of  industry  experience  •Town of Frisco EPC - in audit , $71K •City of Boulder EPC, $1.8M •Adams 12 Five Star School District EPC, $2.1M •Aurora Public Schools EPC, $7M •North Park School District EPC, $1.2M Brian Gamet, CEM Director of Project Development  Staff | Golden, CO  Brian’s primary responsibilities are to lead the regional  development organization in the development of Energy  Performance Contracts. He supports the analysis, energy  auditing, engineering, project scoping, financial feasibility  analysis as well as technical documentation for driving best  value in self‐funding facility improvement and energy  conservation measures.  10% 31 years of  industry  experience  •Foothills Park & Recreation Phase 2 EPC, $8M •Adams 12 Five Star School District EPC, $2M •City and County of Denver Phase 1 EPC, $16M •Huerfano County EPC, $2.2M •City of Louisville Decarbonization EPC •Denver International Airport EPC, $83M Aaron Skroch, CEM, LEED AP Program Manager – Energy Engineering  Staff | Golden, CO  Leads teams that deliver complex scopes for government  customers. He brings significant knowledge of auditing,  energy modeling and HVAC systems as well as a  heartwarming knack for communicating with customers to  deliver a successful performance contract project throughout  the development phase.  70‐80% 20 years of  industry  experience  •City and County of Denver Phase 1 EPC, $16M •City and County of Broomfield EPC, $4M •City of Lakewood EPC, $2.4M •Huerfano County EPC, $2.2M •City of Louisville Decarbonization EPC Martin Beggs, PVIP, NABCEP Project Director, Renewables  Staff | Golden, CO  Martin manages solar development and design to involve  internal and external engineers and subcontractors early and  fully. He prepares competitive RFPs, project budgets, cost and  constructability risk reviews, preliminary construction  schedules, and final, guaranteed maximum (GMAX) pricing for  McKinstry's solar customers. Martin handles all critical project  items during implementation, commissioning, and closeout.  He engages on all critical project items that come up.  25% 16 years of  industry  experience  •Foothills Park & Recreation Phase 2 EPC, $8M •Adams 12 Five Star School District EPC, $2M •City and County of Denver Phase 1 EPC, $16M •City and County of Denver Community Solar, $40M •Huerfano County EPC, $2.2M •Town of Basalt EPC, $1.2M •Denver International Airport EPC, $83M John Doyle, CSLT Project Director, Lighting Solutions  Staff | Phoenix, AZ  John will work with the internal lighting team to ensure the  scope and design standards are followed during the audit and  design phase. He will review the designs and drawings to  ensure that the final design is buildable and optimized for  quick and efficient installation for all lighting scopes over  work during both the development and construction phases  of the project.  50% 32 years of  industry  experience  •City of Phoenix Convention Center EPC, $6M •City of Glendale Investment Grade Audit •Tucson Unified School District EPC, $2.5M •Colorado State University Pueblo LED Retrofit, $2.3M* *Denotes project completed with another firm 95 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 16  1.Management Approach NAME & TITLE STAFF OR SUBCONTRACTOR BASE LOCATION INTENDED ROLE ON THE TOWN OF VAIL PROJECT PROJECT RESPONSIBILITY % OF TIME ON PROJECT LEVEL OF EXPERTISE RELEVANT PROJECTS IN SIMILAR ROLE* Technical Analyses Engineering Design Construction & Training Measurement & Verification Post-Const. Support Brad Liljequist  Director, EV Charging  Staff | Seattle, WA  Brad is a nationally respected leader in decarbonization, well  known for both thought leadership and achieving actual  results. A serial climate solutions innovator, he is now  dedicated to accelerating decarbonization via EPC..  20% 30  years of  industry  experience  •City and County of Denver Phase 1 EPC $16M •City of Louisville Decarbonization Plan $250K •Salt Lake City School District EPC $29.3M •City of Tacoma Biogas Treatment Facility $12.4 M Brendan O’Donnell  Director, EV Charging  Staff | Seattle, WA  Brendan leads McKinstry’s centralized team focused on EV  charging planning, design, installation and operation. He will  oversee the comprehensive development of vehicle  electrification and infrastructure solutions.  20% 15 years of  industry  experience  •Seattle City Light Fast Charging Network, Seattle, WA* •Burlington Northern Santa Fe (BNSF) Intermodal Charging Yard City, Seattle, WA* •Amazon Fleet Charging, Multiple Countries* *Denotes project completed with another firm Sara Berry-Maraist, PE Program Manager, Federal/State Funding  Staff | Golden, CO  As Market Development Program Manager, Sara drives the  Inflation Reduction Act (IRA) strategy and is responsible for  staying abreast across all federal funding guidance,  compliance, and any new funding announcements. She  provides hands on support to clients and community  organizations helping to best understand the variety of  federal tax incentives, grants, and other programs they can  utilize.  10% 6 years of  industry  experience  •Town of Basalt ‐ Anticipated 30% IRA Funding in 2024‐  2025 •City and County of Denver ‐ Anticipated 25.5% IRA Funding in 2024 •Huerfano County ‐ Anticipated 25.5% IRA Funding in 2024 •Moffat County ‐ Anticipated 30% IRA Funding in 2024‐  2025 Clay Herrin, PE, CEM, CMVP, CBCP, CDSM, LEED AP  Mechanical Engineer  Staff | Golden, CO  As our Mechanical Engineer, Clay serves as the engineer of  record for projects and manages scoping, fees, as well as  provides engineering insight into projects. He assists in  communication and coordination efforts and also provides  quality control and assurance by monitoring the design and  reviewing deliverables throughout the life of a project.  25‐50% 27 years of  industry  experience  •Huerfano County EPC, $2.2M •City of Gunnison EPC, $4M •City of Boulder, Open Space and Mountain Parks A/C Design •Denver International Airport EPC, $83M Maya Kadi Design Project Engineer  Staff | Golden, CO  As a Design Project Engineer, Maya is responsible for  reviewing designs for functionality, designing HVAC and  plumbing systems for new and existing buildings, reviewing  engineering design and energy model outputs, and assisting  project teams with the implementation of project designs.  25‐50% 7 years of  industry  experience  •Huerfano County EPC, $2.2M •City and County of Denver Phase 1 EPC, $16M •City of Gunnison EPC, $4M •Fremont RE‐2 School District, Phase 1‐2, $10.3M •Salt Lake City School District EPC, $29.3M Jarred Coulter, PE, CEM Electrical Engineer  Staff | Seattle, WA  Jarred is responsible for electrical calculations, selecting and  sizing electrical systems, selecting and laying out lighting  fixtures, ensuring all applicable codes are met in design, and  adhering to the project’s design budget and schedule. He also  works collaboratively with Martin/solar team to complete any  electrical components for solar PV scopes of work.   25% 26 years of  industry  experience  •Huerfano County EPC, $2.2M •City and County of Denver Phase 1 EPC, $16M •City and County of Broomfield EPC, $4M •Denver International Airport EPC, $83M •Salt Lake City School District EPC, $29.3M Crystal Davis, CEM  Construction Services Manager  Staff | Golden, CO  As Construction Services Manager, Crystal is responsible for  managing the MTN region construction team and all  construction management related functions including hiring  and managing subcontractors, managing project budget and  critical path schedule, all project‐related contractual  documents, and site supervision management support.  50% 21 years of  industry  experience  •Denver Community Solar Gardens, $40M •Denver International Airport EPC, $83M •Origis, SkyHaw 100MW Solar Farm, $75M* •Next Era, Elora 150 MW Solar Farm, $68M* *Denotes project completed with another firm Alexa Vinci Sr. Construction Project Engineer  Staff | Golden, CO  As project engineer, Alexa will be responsible for supporting  the design process, executing systems design, optimizing  design, and providing constructability reviews. She will  organize subcontractors and ensure all activities go smoothly  throughout the construction phase.  90% 5 years of  industry  experience  •Foothills Park & Recreation Phase 2 EPC, $8M •City and County of Denver Phase 1 EPC, $16M •Denver Community Solar Gardens, $40M •NW Colorado Regional Solar PV, $6.3M •Colorado School of Mines EPC, $4.8M 96 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 17  1.Management Approach NAME & TITLE STAFF OR SUBCONTRACTOR BASE LOCATION INTENDED ROLE ON THE TOWN OF VAIL PROJECT PROJECT RESPONSIBILITY % OF TIME ON PROJECT LEVEL OF EXPERTISE RELEVANT PROJECTS IN SIMILAR ROLE* Technical Analyses Engineering Design Construction & Training Measurement & Verification Post-Const. Support John Musso, LEED AP, CEM Site Superintendent  Staff | Golden, CO  As Site Superintendent, John is responsible for on‐site  supervision and coordination of all trades and subcontractors’  field activities. He also is responsible for preparing and  completing all daily project documentation, overseeing  compliance with on‐site safety and environment issues, and  overseeing all post‐construction services.  100% 46 years of  industry  experience  •Foothills Park & Recreation Phase 2 EPC, $8M •City and County of Denver Phase 1 EPC, $16M •City of Lakewood EPC, $2.4M •Denver International Airport EPC, $83M •Denver Public Schools EPC, $8.5M Tom Alvarez Sr. Safety Program Manager  Staff | Golden, CO  Tom delivers construction safety experience for the project and  is responsible for McKinstry’s safety planning, training,  compliance, and overall coordination. His expertise includes  safety leadership, safe‐work planning, safety training,  construction safety and health, behavior‐based safety,  incident/injury‐free environment, project safety audits and job‐ hazard analysis.  10% 20 years of  industry  experience  •Foothills Park & Recreation Phase 2 EPC, $8M •City and County of Denver Phase 1 EPC, $16M •Denver International Airport EPC, $83M •Denver Public Schools EPC, $8.5M •Colorado School of Mines EPC, $4.8M James Johnson, CCP  Lead Commissioning Engineer  Staff | Golden, CO  James’ responsibilities include implementing commissioning,  project closeout activities and training for Vail on new and  existing equipment and systems as part of the project.  10‐20% 10 years of  industry  experience  •Commerce City Civic Center Retro‐Commissioning •Foothills Park & Recreation Phase 2 EPC, $8M •City and County of Denver Phase 1 EPC $16M •City of Lakewood EPC, $2.4M •Denver International Airport EPC, $83M Sarah Parsons, LEED AP BD+C Post-Construction Manager  Staff | Golden, CO  Sarah is responsible for working with clients on all post‐ construction services as the primary project manager. This  includes all ongoing O&M, M&V and behavioral engagement  programs that may continue for 1‐3 years (or more) after  construction has been completed.  25‐50% 19 years of  industry  experience  •Commerce City Facilities Condition Assessment •City and County of Denver Phase 1 EPC, $16M •Denver International Airport EPC, $83M •Salt Lake City School District EPC, $29.3M •Colorado School of Mines EPC, $4.8M Jaymes McMullin, CMVP, CEM, LEED GA  Principal Engineer, Ongoing Monitoring and Compliance  Staff | Golden, CO  Jaymes is focused on identifying and quantifying energy  conservation measures and monitoring performance over  time through McKinstry’s behavioral engagement program.  Jaymes will work with all key stakeholders after construction  has been completed to collaboratively roll out the powerED  program.  25% 18 years of  industry  experience  •City and County of Denver Phase 1 EPC, $16M •Denver International Airport EPC, $83M •Denver Public Schools EPC, $8.5M •University of Colorado Boulder Coors Event Center EPC, $2.4M  •University of Colorado Boulder Wilderness Place EPC, $6.3M Leanne Matthews, CMVP IT, EIT Program Manager, M&V  Staff | Golden, CO  As Measurement & Verification (M&V) Program Manager,  Leanne is responsible for providing direction and oversight of  post‐construction activities including performance assurance  and M&V programs, sustainability services, ongoing  commissioning, and monitoring to ensure client goals are  met. She will lead and engineer all M&V activities for up to 3  years following construction completion.  20% 3 years of  industry  experience  •City and County of Denver Phase 1 EPC, $16M •City of Lakewood EPC, $2.4M •City of Gunnison EPC, $4M •NW Colorado Regional Solar PV, $6.3M •Denver International Airport EPC, $83M •Salt Lake City School District EPC, $29.3M *RESUMES Include resumes/historical information for each member of the proposal project team. Include a list of their relevant projects during the last five years including role, type of project, project cost, and any other information to support their skills/knowledge.  Please see one‐page resumes provided in Appendix A that reflect relevant project experience to Vail. Full resumes for our project team are available upon request. 97 2 Project Approach 98 TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES, RFP 24-077 | MCKINSTRY RESPONSE | 19 2.Project Approach Project Approach The expectation is that there will be schematic and design development phases where client input and approvals will be required prior to construction document development. Additionally, the client will provide design build design intent specifications for the major mechanical, electrical, plumbing and technology improvements that may be looked at for energy savings. The requirements of these specifications will need to be incorporated into the design documents and final construction. PRELIMINARY ANALYSIS McKinstry understands the Town of Vail’s need to partner with an ESCO to better understand the larger opportunity at the proposed 24+ facilities prior to engaging in an Investment Grade Audit (IGA). McKinstry is very familiar and accustomed to providing preliminary analysis of facilities to make sure a targeted audit scope is agreed upon in advance and meets the priorities and goals of the Town of Vail before getting started on any IGA. Our process is as follows: •Gather Initial Information:  We start by collecting basic information about the Town’s facilities. This may include building size, age, usage patterns, occupancy schedules, and historical energy consumption data.  Next, we obtain any existing documentation related to energy systems, such as utility bills, maintenance records, and equipment specifications. •Site Visit and Visual Inspection:  Our team conducts a brief walkthrough of key facilities to visually assess the building envelope, lighting systems, HVAC (heating, ventilation, and air conditioning) systems, controls, and other energy- related equipment.  Then we look for signs of inefficiencies, such as air leaks, outdated equipment, inefficient lighting, or poor insulation. •Benchmarking and Comparison:  McKinstry engineers will utility benchmark the Town’s facilities against similar buildings to assess their energy performance relative to peers.  After benchmarking the Town’s facilities, we can then identify outliers or deviations from expected energy consumption patterns that may indicate opportunities for improvement. •Prioritization of Potential Measures:  McKinstry evaluates the feasibility, cost-effectiveness, and potential risks associated with implementing different energy efficiency measures.  We then prioritize recommendations based on factors such as payback period, facility and equipment conditions, and impact on overall energy consumption. •Town Consultation and Review:  We present the preliminary analysis findings to the Town and solicit your feedback and input.  We address any questions or concerns raised by the Town and adjust the proposed approach as necessary based on the input.  Then, we agree on final scope of the IGA. GATHER INITIAL INFORMATION TOWN CONSULTATION AND REVIEW BENCHMARKING AND COMPARISON SITE VISIT AND VISUAL INSPECTION PRIORITIZATION OF POTENTIAL MEASURES PRELIMINARY ANALYSIS PROCESS 99 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 20 2.Project Approach By following this structured approach for a preliminary analysis of Town facilities, we can effectively identify and prioritize opportunities for energy savings and tailor your energy audit to target specific scopes at specific facilities, ultimately helping the Town of Vail achieve your energy efficiency goals while being efficient with the audit scope and associated fee. We performed an effort similar to this at the University of Colorado Boulder with the intent of focusing the IGA effort that moved forward to contract. For this specific customer, we focused on building energy utilization indexes (EUIs), comparing actual values with expected values based on facility type benchmarks. In addition, we included existing facility condition data the customer provided as well as our field observations to arrive at a recommended list of facilities to move forward with into a full IGA. 100 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 21 2.Project Approach Investment Grade Audit McKinstry’s project approach to the investment grade audit and performance contracting can be summarized in three words: collaboration, flexibility, and transparency. We believe first and foremost that successful energy performance contracting relationships hinge on a high degree of collaboration and communication with our clients, as shown in the graphic to the left. As we mentioned previously, we will leverage our past experiences with these buildings as a starting point to ensure that we do not do double work. We are your long-term energy, sustainability, funding and facility partner and are not here as just a vendor. For us to provide value, we must understand your vision, your goals, your preferences, and your expectations from Day 1. Throughout the investment grade audit phase, we work closely with you to gather all the necessary information and develop a holistic program that meets everyone’s needs, alleviates any concerns of decision-makers and implements the desired improvements. Our municipal clients typically define a partner with the following examples: •An ESCO familiar with auditing high-elevation municipalities. McKinstry has partnered with over 30 local governments in Colorado on EPCs in the past decade, with many being similarly located high-elevation mountain towns. Our team will bring the experience – and lessons learned – in auditing these unique areas to the Vail audit. •An ESCO who understands your needs and helps you solve your toughest problems – being recognized as a global leader in sustainability, demonstrating aggressive action on global climate change, resource efficiency, ecosystem protection and community awareness and education. We understand that your larger climate action goals to reduce carbon emissions by 50% by 2030 and 80% by 2050 need to be overlayed with these themes. Our team has experience working with municipalities to address decarbonization goals through the development of comprehensive energy performance contracts that align with overarching climate action objectives. PROJECT APPROACH PRELIMINARY DEVELOPMENT Utility data analysis Develop preliminary ECM/FIM list Design Team reviews work ROUGH ORDER OF MAGNITUDE (ROM) DEVELOPMENT Finalize ECM/FIM list for client Design Team reviews & comments 30% PRELIMINARY FINDINGS MEETING 60% ROM PRESENTATION 90% PRE-FINAL MEETING Complete cost and constructability reviews Design Team informs GMAX pricing GUARANTEED PRICING AND SAVINGS DEVELOPMENT CONTRACTING, CONSTRUCTION AND COMMISSIONING (Cx) Development Team works with Construction Manager POST-CONSTRUCTION SERVICES/ MEASUREMENT & VERIFICATION Warranty Services | Customer Training | M&V Reports PROJECT KICK-OFF Vail helps prioritize opportunities and remove those not feasible or desired Vail makes final selection of measures for project inclusion Vail selects individual measures to move forward to pre-final development Collaboration Throughout 101 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 22 2.Project Approach By partnering with an ESCO deeply committed to understanding your needs and addressing your toughest challenges, you're not just investing in energy solutions — you're investing in a strategic ally dedicated to advancing your position as a global leader in sustainability. Our track record speaks volumes: from spearheading aggressive action on global climate change to championing resource efficiency, ecosystem protection, and community awareness and education initiatives, we have consistently demonstrated our unwavering commitment to driving meaningful change on a global scale. •As you embark on the journey to reduce carbon emissions by 50% by 2030 and 80% by 2050, we recognize the imperative of integrating these themes into every facet of our partnership. Our team brings extensive experience collaborating with municipalities to develop holistic decarbonization strategies that not only meet, but exceed, ambitious emission reduction targets. By overlaying your larger climate action goals with our expertise in sustainability planning and execution, we will co-create innovative solutions that not only mitigate environmental impact, but also foster economic resilience, social equity, and environmental stewardship. •A partner that understands the need for critical meetings with key decision-makers – Town Council, Public Works, Town Manager’s Office, Community Development, Parks, Recreation and Golf, Town Staff, various utilities, and the community, to provide guidance and other essential facility operations decisions over the course of the project. We genuinely want to build your trust in McKinstry and work as an extension of your staff by providing guidance for these critical stakeholder meetings. Additionally, we are the kind of partner that your operations team can call up when there is a question with the building systems – anytime – and we can help to provide an answer. We are eager to assist your team whenever a question arises and seek to be a supportive partner to Vail and provide you with flexibility and options throughout the life of the project. 102 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 23 2.Project Approach 2.1 Design Discuss your firm’s design approach. McKinstry’s Energy Performance Contracting design-build approach has been developed for optimal flexibility and value, allowing for continuously updated life-cycle costs, construction budgets, and design decisions. We routinely perform design-build services as part of an integrated team approach, and we achieve success by engaging all team members from the very beginning of the project. We focus strongly on planning and idea-generating in early project phases. Prior to beginning any design-related work, McKinstry will review Vail’s internal Design Standards and/or meet with your design team to ensure that our design process and proposed Energy Conservation Measures (ECMs) align with your internal standards. Any proposed deviations will be submitted to Vail for consideration early in the design process. We will draw from our specialized design expertise from across our 650+ energy, design, and engineering professionals at McKinstry to form sub-teams to identify and refine strategies. OUR PERSPECTIVE ON PERFORMANCE-BASED DESIGN-BUILD Performance-based design-build describes a project that has clear project and facility performance benchmarks, including a way to quantify, measure, verify, and guarantee project performance. Projects must include comprehensive life- cycle performance or Total Cost of Ownership (TCO) analysis that substantiates the value of specific equipment, design, system, etc. for lower total operational costs over time. TCO ensures the best life-cycle performance. Performance-based design-build mandates a vendor, equipment, design, and/or a fuel-neutral process. Final designs and equipment selection will be determined solely on their own merit and life-cycle performance. Decisions are made in an integrated design and delivery process with the design-selected contractors, integrated McKinstry design team, and owner examining the modeling analysis to determine the best solution. SCHEMATIC DESIGN PROCESS DURING OUR ENERGY PROJECTS McKinstry will schedule a design kickoff meeting – separate from the project kick-off – to reiterate the vision, goals, and results of the 30% audit development phase, and to present the design plan, key milestones, schedule, and project deliverables. The roles and responsibilities for each team member are reviewed and the framework for project communication is established. As the design team works to produce schematic design documents, the Construction Manager and Project Engineer will begin to create budgetary project costs for a base design and each of the design options—keeping careful watch for potential constructability barriers. McKinstry has employees that know the business well and are highly qualified. I was able to understand and be easily guided through the EPC process.” —Brenda Krage, (Former) Superintendent Platte Canyon School District, Colorado McKinstry personnel use Building Information Modeling (BIM) to check for equipment conflicts before projects come under construction. This helps minimize costly field changes and keeps the project on schedule. 103 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 24 2.Project Approach The information put together by the project team will be combined with the results of the building energy models performed by McKinstry’s energy engineers to build a Total Cost of Ownership (TCO) model. This model will look at all long- and short-term facility costs and will assess the impact of each design option as it relates to the life-cycle cost of the specific design options. McKinstry can even work with Vail to quantify metrics such as GHG emissions and occupant productivity and incorporate these variables into the TCO model. The Schematic Design (SD) documents and the TCO model will be presented to Vail at the 60% ROM (Rough Order of Magnitude) meeting. This meeting will serve as a decision-making point, where design options are prioritized and evaluated based on the project vision and goals. Some design elements might be assigned to future phases depending on the project costs and budget. Once the basic model is set up and assumptions validated, we evaluate and compare different project scenarios. This can be done for both high-level, global analyses and detailed subcomponent design. Finally, after design is complete, the TCO tool can be used as the basis for developing an operating plan that optimizes operational choices for the selected design. The operating plan also serves as a benchmark for future measurement and facility management. DESIGN DEVELOPMENT PHASE The Design Development (DD) Phase further cultivates the ideas and decisions made in the SD phase and produces the appropriate design collateral for review and discussion. The project team functions in much the same way that it did in the SD phase, with an increased focus on accuracy and improved resolution. Further refinements are made to the project budget, cost estimates, energy model, and TCO model while our Program Manager continues to evaluate the project’s triple-bottom-line. The updated design documents and TCO model will be presented to Vail after the DD phase. Further decisions will be made about phasing and alternates, using an up-to-date customer budget and the project goals as a guide. The Investment Grade Audit (IGA) will have developed an initial plan and at this stage it is further refined and tested. CONSTRUCTION DOCUMENTS/PRE-CONSTRUCTION PLANNING During the Construction Document (CD) Phase, we further develop the design documents while simultaneously beginning pre-construction activities. Once the 60% CDs have been completed, McKinstry and Vail can evaluate and competitively select (if desired) the major subcontractors and material suppliers for the specific project scope and integrate them with the project team. As mentioned previously, we endeavor to keep work in local contractor communities and will focus on engaging local subcontractors. Once they are in place, we will begin planning construction activities and develop a preliminary schedule and an onsite staging and sequencing plan. •Engineering •Energy retrofits •Energy and environmental planning •Innovative value engineering solutions •Financial modeling •Drawing permitting and stamping •Operational modeling •Commissioning •Building Information Modeling (BIM), CAD, CAD 3D, super plot drafting and detailing •Renewable energy (biomass, solar, geothermal) •Total Cost of Ownership (TCO) analysis •Mechanical, electrical, telecommunications, fire protection, architectural metals design •Design process guidance •Critical decisions guidance •Code compliance •Integrated delivery •System selection •Sustainable planning and design •LEED® certification •Geothermal design and modeling MCKINSTRY CAPABILITIES 104 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 25 2.Project Approach We will conduct the final pre-construction update of the TCO model and project budget, and the project team will solidify any phasing plans. The design team will use this information to finish the construction documents and issue permit documents to the local authority. Material procurement is always one of our highest priorities. We build material procurement logs and expediting logs to assure that all steps in the process are completed in a timely manner that fully supports the project schedule. This includes identification of long lead-time equipment and specialty subcontractors that may need to be released sooner than normal to maintain the schedule, save costs and increase coordination. COLORADO DESIGN & PROFESSIONAL ENGINEERING RESOURCES McKinstry has significant engineering knowledge related to designing utility and energy conservation measures to meet short and long-term goals. We employ a highly skilled engineering staff and have a unique position in the ESCO industry as a 64-year-old full-service design, build, operate, and maintain company that has substantially increased our engineering knowledge capital. Our engineers have access to trades people and construction professionals, a blend of strong engineering with real world construction, which allows for constructability consideration in the design phase and overall project seamlessness. Our in- house design engineering professionals include: Clay Herrin, PE Mechanical Engineer Jarred Coulter, PE Electrical Engineer Maya Kadi Design Project Engineer Emily Wong, PE Mechanical Engineer Liesbet Hess, PE Mechanical Engineer David Zilis, PE Mechanical Engineer Derek Larson, PE Mechanical Engineer 105 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 26 2.Project Approach Example of Town of Vail Project Measures for Design/Engineering A typical investment grade audit effort for a project of this size, including Vail and CEO reviews, takes 6-10 months to complete depending on final included IGA building list, as well as the complexity of the measures. If grants are used for funding, this timeframe may extend depending on grant application cycles. McKinstry is well equipped to execute this audit in a timely manner and we carefully decide how to split scopes between energy engineers in an efficient manner either by building or by system, whichever makes the most sense after our initial assessments. An example list of measures is shown below in addition to the measures that we would focus on specifically called out in the RFP. MEASURE DESCRIPTION UTILITY SAVINGS CONSTRUCTION COST TYPICAL SIMPLE PAYBACK (YEARS) LED Lighting Upgrades (interior, exterior) $$$ $$ 5 – 20 Domestic Water Conservation $ $ <10 Electric Vehicle Chargers $ $ 10 – 15 Solar Photovoltaic – on-site $$$ $$ 10 – 30 HVAC Replacements and Renovations $ $$$ 10 – 50 Building Envelope Upgrades $ $$ 15 – 50 Window Replacements/Repairs $ $$$ Capital Roof Repairs/Replacements $ $$$ Capital Controls and Retro-Commissioning $$$ $ 5 – 10 Behavior Engagement Program (sustainability, community) $ $ <5 $ = Low energy savings or cost | $$ = Medium savings or cost | $$$ = High savings or cost 106 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 27 2.Project Approach POTENTIAL TOWN OF VAIL MEASURES FOR OUR DESIGN AND ENGINEERING PROCESS Snowmelt System Optimization A focus for this effort will be to provide solutions that address the significant cost and emissions challenges of operating a significant snow melt system. While electrification using standard electric boilers (coefficient of performance also known as COP = 1) could be relatively straightforward (already being tested by the Town), it will have significant cost impacts as electricity is more expensive on a btu basis than natural gas. A more efficient electric approach would involve utilizing heat pumps to increase the COP’s. Air source heat pumps would be ideal, except that cold temperatures limit their performance (both output and COPs). Ground source would be a nice option if space is available for the bore field (potentially challenging) which would keep COPs elevated, but at a significant increase in capital cost. Possibly a hybrid system that used multiple technologies would be the best combination in terms of upfront capital cost vs. ongoing operational costs. Another consideration for biomass boilers is their use of carbon-neutral fuel to power the snowmelt system, with careful evaluation needed for concerns about reliability, maintenance, and fuel costs. LED LIGHTING UPGRADES – INTERIOR AND EXTERIOR An effective lighting retrofit program will begin with a detailed audit that collects over 28 attributes per space to determine the right upgrade solution for each facility. McKinstry’s internal lighting system experts will evaluate all the interior and exterior light fixtures (that haven’t already been upgraded) to determine the most cost-effective LED retrofit/replacement solution. We are vendor neutral and will provide comparative analysis on all key performance indicators for various Tier 1 manufacturers, including photometrics for Vail’s review and approval. One goal we have with material selection is to reduce the number of different types of fixtures and lamp types for ease of future maintenance. McKinstry is excited to partner with Vail to create customized lighting solutions for these facilities. Our lighting analysis will include a detailed audit of offices, meeting rooms, pools, gymnasiums, golf courses, maintenance areas, and exterior lighting common areas across Vail’s facilities. Our goal is to optimize the performance of the lighting system to improve comfort and maximize energy and operational savings. In summary, an effective lighting design will not only save energy, but also create an improved working environment for your staff. The graphic on the right shows McKinstry’s lighting design and development approach. 107 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 28 2.Project Approach WATER CONSERVATION Within Vail, possible interior low-flow water conservation measures include toilet and urinal replacement or retro-commissioning, flush valve tuning, low- flow faucet aerators, and low-flow showerheads. For all shower retrofits, we will work with Vail to conduct pilots of any potential showerhead flow reductions to ensure all patrons and/or staff are happy with any flow adjustments. We often partner with HydraMetrics for this type of work – they have been lowering indoor water costs by 25% - 40% over the last 15 years and to date have saved 15 billion gallons of water and approximately $90 million of utility costs for their customers. However, we have also worked with different water partners and will work with Vail to find the best partner. McKinstry will also evaluate exterior opportunities for additional water savings such as evapotranspiration-based smart controller, fixing irrigation system leaks, and investigating weather-based water strategies where it makes sense. We often partner with Envocore and use WeatherTRAK equipment for this type of work, although similar to the interior water scope we have used other partners and will work with Vail to continue to use Watertronics and/or find the best partner. Please see this link for the work we did with Envocore for Denver Public Schools: https://envocore.com/case-studies/water-efficiency/denver-public-schools/ HVAC CONTROLS OPTIMIZATION Control systems allow for precise control of building systems and can empower building owners with the ability to maintain occupant comfort while minimizing energy consumption. Building automation and control systems come in many varieties, types, and ages. We are very familiar with Distech controls and will continue to work with Vail’s preferred vendor or recommend alternative Distech control vendors if the Town anticipates making a change. McKinstry will assess the condition and capabilities of the control systems in your buildings and will make recommendations on replacement, expansion, or modification based on the specific needs of each building. We have staff that are adept in the many different control systems, automation training, and trim and respond optimization strategies. BAS trends will be deployed to identify areas of inefficiency and McKinstry will recommend setpoint, schedule, variable frequency drive (VFD) operation on fans and pumps, and sequence of operation changes such as optimizing economizer operation, ensuring units are running only when the building is occupied, and demand-controlled ventilation to reduce the energy use while still meeting the ventilation requirements. McKinstry will identify and make recommendations to replace/upgrade the faulty components, restore the functionality of the system and use the energy savings achieved by optimizing the control of the system (retro-commissioning) to offset the cost of the controls work. The energy savings achieved through control optimization strategies are typically low in cost and the magnitude of savings generated results in a low payback measure that generates the excess energy savings needed to fund capital intensive measures within an EPC like HVAC system replacements. 108 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 29 2.Project Approach EV CHARGING STATION INSTALLATION McKinstry recognizes and commends Vail on their goal to have electric vehicles (EVs) making up 30% of the vehicles on the road by 2030 and 100% of the vehicles on the road by 2050. Adding chargers to facilities will help Vail reach this goal. In addition, McKinstry understands the goal of adding EV chargers at Community Development, Donovan Pavilion, and other facilities. McKinstry can expand EV charging infrastructure under an EPC agreement. McKinstry is a national leader in planning, designing, and installing EV infrastructure. Our projects include some of the largest, most complicated fleet and EV charging projects in the country. This includes local projects for the Town of Frisco, City and County of Denver, City of Louisville, City of Broomfield, City of Gunnison – in addition to national projects including Seattle’s transit agency, Amazon logistics depots and a 97-site portfolio for Washington State Parks. Through this experience, we’ve learned how to help customers electrify based on the unique characteristics of their operations and facilities – driving cost and risk out of EV infrastructure deployment. Building EV charging infrastructure is about more than just setting equipment and running conduit. In many cases, we are dealing with complex supply chain issues, utility involvement, and complex design considerations. We will work closely with Vail to choose the right number and type of chargers to deploy at the remaining facilities without EV chargers. We can also begin exploring fleet electrification with Vail when appropriate. We will leverage local and national grants to help with Vail’s EV pursuit. 109 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 30 2.Project Approach SOLAR PHOTOVOLTAIC – OWNER DIRECT McKInstry recently completed a Solar PV and Battery Energy Storage System (BESS) Feasibility study, that evaluated owner-direct solar and BESS options for the Town of Vail. We found two sites to be financially and logistically feasible; Solar PV at the Vail Public Library, and Solar PV and BESS at the Donovan Pavilion Events Center. An installation of a solar photovoltaic system at these sites will produce renewable electricity and provide Vail with a highly visible representation of Vail’s commitment to sustainability. We have ample experience installing multiple megawatts of solar PV right here in Colorado within energy performance contracts and currently have multiple project portfolios in development, design and construction. . Below are some of the viable options that we will continue to investigate for Vail’s ESPC project. ON-SITE SOLAR Use the energy you produce locally  Include other energy/capital improvements  Visible commitment to renewable energy  Retain ownership of Renewable Energy Credits (RECs)  Reduce grid reliance  Demand savings potential  Owner-Direct Solar On-site solar, also known as behind-the-meter solar, is constructed on the building or property where the building is located. The solar system connects to the building’s electric service, reducing the facility’s energy consumption from the utility grid, thereby reducing utility costs. This reduced grid energy usage and utility cost savings can pay for the solar system over time, generating savings each month. On-site solar is deployed through rooftop, ground mount, and solar canopy installations and is viable for a few of the facilities listed in the RFP. As per our feasibility study, Vail has called out installing solar arrays at Vail Public Library and Donovan Pavilion Events Center. Please see the following page for preliminary potential solar placement at these sites. MCKINSTRY’S RENEWABLE ENERGY TEAM HAS DEPLOYED: 250 of solar across 200+ sites in 15+ states 110 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 31 2.Project Approach The table below shows some of the many benefits of installing on-site solar. System Type Roof System Size (kWDC) 20.4 Year 1 Production (MWh) 22.5 GHG Reduction (MTCO2) 15.9 System Type Roof System Size (kWDC) 24.8 Year 1 Production (MWh) 25.8 GHG Reduction (MTCO2) 18.3 The experience, professionalism and technical expertise McKinstry has displayed are among the highest in the industry. McKinstry has built a strong partnership with our city and has developed relationships with our staff members. These efforts have facilitated effective collaboration and communication throughout the development, implementation and commissioning efforts.” —Joe Castro, (Former) Facilities and Fleet Manager, City of Boulder, Colorado 111 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 32 2.Project Approach BATTERY ENERGY STORAGE SYSTEMS (BESS) McKinstry can also help Vail explore implementing battery energy storage systems (stand alone or in conjunction with solar PV). We have a world class team with extensive experience in developing, financing, designing, constructing, permitting, commissioning, and interconnecting these types of projects. McKinstry was recently awarded a combined solar PV and battery storage system for Green Valley Ranch Library with the City and County of Denver. We are also currently working on a utility scale BESS project for Holy Cross Energy and have completed BESS projects at multiple locations for Kaiser Permanente in California, as well as for a few Fortune 50 technology companies for their data centers. We would love to discuss BESS further with Vail. HVAC EQUIPMENT REPLACEMENT McKinstry’s energy engineers will closely coordinate with our design team and the Town to make sure that the replacement systems are the right system for the application based on facility operation, energy use, electrification potential, the owner’s maintenance capabilities and the capabilities of nearby service providers, and finally, the first cost and total cost of ownership. McKinstry will assess if it makes sense to replace the faulty HVAC component or if a total system replacement, which may cost more but yield higher long-term energy savings, is the better solution. Our engineers can also help map out a long-term electrification plan for equipment if current replacement is not feasible due to equipment lifespan, budgetary restraints, or current building conditions. BUILDING ENVELOPE ASSESSMENT, REPAIR AND IMPROVEMENTS Improving building envelope performance can have a significant effect on a building’s total energy consumption needs. We will examine each Vail building within the ESPC project scope, looking for improvements such as: improved insulation, highly insulated windows, advanced thin insulation, lower cost dynamic shading and glazing, reflective roof materials and air-sealing. The most critical and essential function of the building envelope system is the building diagnostics and assessment performed by our engineers. They will complete a detailed and thorough visual inspection and use an infrared Thermal Imaging camera to identify both heating and cooling concerns in the structure. This will assess the building envelope to identify air leakage, poor thermal performance and energy losses. This will guide the assessment and evaluation of potential measures including, but not limited to: •Building weatherization and sealing •HVAC airside weather-stripping •Thermal load reducing roof systems •High energy efficient window replacement 112 TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 33 2.Project Approach EXAMPLE CASH FLOW FOR TOWN OF VAIL EPC PROJECT WITH MEASURES ABOVE With all the measures above, we have created a customized example cash flow for Vail. A draft cash flow based on findings will be generated and presented to Vail after the 60% audit meeting. Ogden City is now realizing over $450,000 in annual savings from our project and will continue our journey to a sustainable community of which this EPC project with McKinstry is an important part. —Justin Anderson, PE, Office of City Engineer, Ogden City, Department of Public Services 113 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 34 2.Project Approach 2.2 Product Selection Discuss your firm’s product specification procedures. McKinstry does not represent any products or manufacturers and is completely vendor neutral. As a design- build professional services and construction company, we endeavor to use products and materials that our customers request/prefer or are simply the most competitive in value and price. For this project, McKinstry will rely on a combination of Vail preferences and our engineers’ expertise in determining needs such as capacity, redundancy, physical size of equipment, weight of equipment, vendor product support, efficiency, available utilities on site, system conditions, and other factors depending on your situation. We will own the full process and review the option matrix with your team in order to select the equipment and products most desired by Vail. 2.3 Construction Discuss your firm’s construction approach, including Work plan development and coordination of identified client work requirements, Communication with users and facilities personnel throughout process, Methods of procedures submittals and approvals, Support for client calendar and events, Safety practices and procedures CONSTRUCTION WORK PLAN DEVELOPMENT AND COORDINATION McKinstry has developed construction management tools over the course of many years based on our own experiences as well as feedback from clients and teammates. Since our construction managers are involved beginning at the schematic design phase, they will be well versed in the goals, scope of work for the project, and preliminary project constraints. The first step, once the project moves into construction, is a kickoff meeting with the Town to further solidify the items above and introduce our full construction team (site superintendent, project engineer, and safety program manager). Collaboration, Innovation and Teamwork CONSTRUCTION CRYSTAL DAVIS, CEM Construction Services Manager ALEXA VINCI Sr. Construction Project Engineer TOM ALVAREZ Senior Safety Program Manager JAMES JOHNSON, CCP Lead Commissioning Engineer JOHN MUSSO, LEED® AP, CEM Site Superintendent The safety represented by the team has been outstanding, I’d even call it extra cautious.” —Brett Collins, South Suburban Parks and Recreation District, Colorado 114 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 35 2.Project Approach Among our key tools are: •Microsoft Project or Similar Scheduling Software – McKinstry construction managers use industry-standard tools such as Microsoft Project to formulate schedules. We update and report the schedule status to you each week. This keeps you informed about where construction will be occurring so that McKinstry and Vail can plan work, keep stakeholders informed and schedule shutdowns in a way that minimizes disruption. •Procore – A leading Construction Management platform, Procore lowers project risk, allows for visibility every step of the way, assists in delivering projects on time and on budget, and optimizes collaboration with all teams from the office to the field in real time management. Procore is currently our primary software tool, but we are flexible to use any tool Vail prefers. •Aggressive Goal Setting – At the start of construction, we meet with all foremen to set aggressive but obtainable labor goals; then, throughout the project, we track field performance against the goals. •Scope Coordination Matrix – This matrix lists all involved parties and assigns the numerous scope issues between them. The team decides the right allocation of responsibilities and includes all detail necessary to avoid gaps or duplicative work. •Budget Control Log – We track all cost issues in this log and report the budget status to you and the team each week. This helps ensure that budget and scope issues are identified and addressed early, based on informed decisions. Detailed Scheduling Approach After the kickoff meeting, we will work diligently with Vail to create a project schedule that works for all parties. As mentioned above, we usually maintain the schedule in Microsoft Project and provide weekly updates. If Vail has a preference for scheduling software and how frequently updates are provided, our team can certainly tailor their efforts to accommodate Vail’s needs. Our updates to the schedule keep you informed about where construction will be occurring so McKinstry and Vail can plan work, keep stakeholders informed, and schedule shutdowns in a way that minimizes disruption (example Microsoft Project schedule is provided on page 36). McKinstry performed facility assessments for over 12 locations, including Buffalo Run Golf Course, Pioneer Park, Community Centers and Civic Center. We catalogued over 1600 assets in +320k-sqft of city facilities, and supported Priority 1, 2, and 3 project planning for 2021-2023 based on data-informed metrics from condition of assets, energy use intensity, occupant impact, and operational impacts. David Bebak (Former) Fleet and Facilities Manager City of Commerce City, CO 115 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 36 2.Project Approach There are five key components that influence the project schedule: Daily Operation Interference – We understand that we will be working in occupied buildings or during recreational center’s annual shut down week(s) and we will need to carefully coordinate activities to accommodate. Our goal is to provide limited interruptions as much as possible. We can perform swing shift and night shift work as needed, especially with lighting upgrades. Seasonal Limitations – We generally aim to complete projects on the cooling system in the winter and the heating system in the summer to maximize occupant comfort. Subcontractor Input – We work closely with our subcontractors to develop our schedules. We have our subcontractors participate in Pull Planning sessions to ensure we have a realistic schedule that adheres to all schedule constraints. Equipment Accessibility – We work closely with our subcontractors and vendors to understand our equipment lead times early. We focus on our long lead time items and ensure our schedules account for this time. Shutdown Coordination Constraints – We are well-versed in properly coordinating all shut-down work inside a building including early notifications to all building occupants and utility company coordination. Often these shutdowns need to be performed after hours. Daily Operation Interference Seasonal Limitations Subcontractor Input Equipment Accessibility Shutdown Coordination Constraints 116 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 37 2.Project Approach EXAMPLE Construction Schedule 117 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 38 2.Project Approach COMMUNICATION THROUGHOUT THE PROJECT McKinstry understands that communication is key to the success of the project. Key elements to project success are through continuous and collaborative communication. COMMUNITY OUTREACH THROUGHOUT THE PROCESS Examples of various communication strategies McKinstry can implement or support and has previously deployed on our projects include public relations activities, lunch and learns, community workshops, media/press releases, marketing flyers, brochures, banners or posters, on-site information kiosks, groundbreaking, ribbon-cutting, and/or open house celebrations for media, public, officials, and legislator outreach. These are included in our EPCs during the audit, construction and post-construction phases and we are happy to work collaboratively with Vail’s internal communications team to co-develop resources and outreach throughout the entirety of the project. Additionally, our behavioral program, powerED, utilizes several of these tools as well should Vail choose to pursue that program (more fully described in Section 2.6, Other, of this Project Approach Section). The McKinstry Team, Routt County and the City of Steamboat hosted a ribbon cutting ceremony for the community in 2021 to celebrate the completion of multiple solar arrays throughout the NW Colorado region. MEETING CADENCE Construction kickoff meeting establishes our meeting schedule. We recommend bi-weekly pre- construction and weekly after mobilization. DAILY CONTACT Establish continuous communication, including daily reports and a primary contact for site access. Daily satisfaction of on-site personnel with whom we interact is an indicator of the success of a project. OCCUPANT IMPACT Assist occupants in preparing for upcoming work by communicating in writing how scopes will affect them directly. PROTOCOL ADHERENCE McKinstry’s team will work closely with you to adhere to all proper state and local protocols throughout the project. STAKEHOLDER ENGAGEMENT Collaboration with all required stakeholders to identify targeted messaging groups, desired outcomes, and best strategies for communicating with constituent groups about the energy project. 118 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 39 2.Project Approach METHODS OF PROCEDURE, SUBMITTALS, AND APPROVALS We will work in conjunction with our subcontractors to create methods of procedure for all high-risk scopes such as solar interconnections, crane picks, breaker change outs, and scopes with tight timelines. McKinstry will gladly produce methods of procedures for any other scope of work Vail desires. McKinstry reviews all submittals throughout the entire EPC process in full detail, keeping the overall facility operations, facility functions, applicable Town standards and contract documents in mind. The McKinstry construction team will review all submittals received from our subcontractors for completeness, create a submittal cover sheet, and forward to the development team, design engineers and commissioning engineers for review. Our project development team continues to be a strong part of the quality control effort throughout this phase of construction. Because the submittal review process is the last chance to ensure that the correct equipment, materials, and control strategies are provided and implemented, the McKinstry team uses a review strategy that encompasses building systems integration as a whole in the submittal review. After our design and development teams have reviewed and approve the submittals, they are provided to Vail for review. After Vail’s review is completed and the comments are returned to McKinstry, the Construction Project Engineer will forward the document(s) to the subcontractor and ensure all comments are addressed. If needed, a revised submittal is then drafted and received. SUPPORT FOR CLIENT CALENDAR AND EVENTS McKinstry fully understands that Town operations take precedent. We will work closely with Vail to ensure we have the most-up-to-date event calendar and ensure that we know how to continue to receive updates as the calendar changes. As mentioned earlier, we are familiar with working in occupied buildings and buildings with tight shut-down schedules. We understand the importance of extensive pre-planning with all stakeholders to work around, and capitalize on, occupant schedules. With our extensive work in the local government setting, we are very familiar with ensuring the major scopes are implemented with heavy collaboration from Vail. EXAMPLE: Project signage (large banner/vestibule poster) 119 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 40 2.Project Approach SAFETY PRACTICES AND PROCEDURES McKinstry focuses on jobsite and company safety and has enjoyed excellent safety ratings for over 17 years in Colorado. As a people-first company, we will never compromise safety for the sake of efficiency. McKinstry has a full-time safety program manager in our Golden office supported by a corporate safety team dedicated to preventing loss and maintaining a safe and healthy work environment. Our safety policies are tested and evaluated by each of our departments, and we expect full implementation of our safety program by all employees at all levels. Our corporate and local safety teams ensure that all field projects have McKinstry safety manuals, material safety data sheets, federal and state standards, documentation support (accident/injury/near miss report forms, etc.) and training to properly fill out the necessary documentation. Prior to job start-up, a site-specific Safety Training Program will be prepared with mandatory training provided to all jobsite supervision. The project Safety team will provide training for all project personnel in the numerous aspects of construction safety, including specific guidelines in areas of personal protective equipment (PPE), fall protection, lock-out/tag-out procedures, hazardous communications, waste disposal, assured grounding, and other identified risk areas. We will conduct frequent, ongoing toolbox safety training to maintain the highest safety standards. For every project, we develop a site-specific safety plan that factors in specific project risk areas and focuses on preventative safety measures to assure safe working conditions for our crews and all occupants. This very-detailed safety plan will be presented to building management staff prior to the start of work. Safety credentials of subcontractors and their assigned employees will be required and kept on file with us. Everyone on site will be qualified to safely perform required tasks—verified by documentation evidencing appropriate safety training. •Construction Manager Safety Responsibilities – Our Construction Services Manager, Crystal Davis, has the ultimate responsibility for safety on this project. Responsibility and leadership in establishing and maintaining a safe working environment starts at the top. •Site Superintendent Safety Responsibilities – Our Site Superintendent, John Musso, has the front- line responsibility for safety in the field and has experience working with clients as large and complex as Denver International Airport. The Site Superintendent will hold weekly toolbox safety meetings where topics range from safety planning for up-coming tasks to site observations or lessons learned. Foremen are charged with making sure field employees know how to work safely, have the proper tools and equipment to do so, and that they follow the safety regulations set forth by McKinstry’s Corporate Safety team. 120 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 41 2.Project Approach •Safety Program Manager Responsibilities – Our Safety Program Manager, Tom Alvarez, is responsible for safety leadership, safe work planning, safety training, construction safety and health, behavior- based safety, incident/injury-free environment, project safety audits, job hazard analysis, and overall safety coordination. He will work closely with advisory groups to ensure safe work planning is being used on-site to reduce the risk of incident and injury. This practice of planning safety into each task will ensure that the Vail customized safety program is proactive, identifying potential risks before they have the chance to occur—reinforcing the safety culture and preventing incidents on your project. 2.4 Closeout Discuss your firm’s approach to the following critical closeout activities: Systems Commissioning, Owner Training, Post-Implementation Report, which is a reconciliation of the EPC savings guarantee with any modifications during project implementation and Provision of Record Documents – i.e. As- Builts /Operation & Maintenance manuals. IN-HOUSE COMMISSIONING APPROACH At McKinstry, commissioning (Cx) is an essential part of our integrated project delivery, with expertise derived from extensive experience, a sizable certified in-house team, and dedicated testing, adjusting, and balancing (TAB) staff with experience in a wide variety of environments and systems. McKinstry’s commissioning engineers review and help optimize every aspect of design and integrated delivery. They are involved early in the project, identifying what will be commissioned and how the commissioning phase will be carried out. The Cx team reviews designs and all submittals as well. Cx is a quality assurance process that ensures proper construction. Our years of Cx experience have taught us that operational issues uncovered and corrected during overall Cx are about 50% design and 50% construction. Additionally, McKinstry uses advanced technologies to improve collaboration throughout commissioning and achieve substantial time savings in addressing these issues throughout the design/build process. CxAlloy is one such technology, selected by our Cx professionals for multiple reasons: •Mobility—CxAlloy allows our commissioning team to complete test documents in the field, via an iPad application, and create the commissioning report while the Cx work is being completed. This also allows us to readily update documents and changes due to varying field conditions. •Issue Management— As issues are identified in the field they are logged and assigned to the appropriate party in real time. This significantly speeds up the resolution process since issues do not have to be transferred to a master issue log (typically in Excel) and distributed to the team when the Cx engineer returns to the office. BEST-IN-CLASS COMMISSIONING 1000+ Facilities Commissioned 150M+ Total sq ft Commissioned 30+ Years of Cx Experience 90+ Cx Professionals on Staff 200+ LEED Certified Projects 121 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 42 2.Project Approach Project partners such as contractors, subs, and the owner are able to access the issue log via a web browser at any time to either update information or check project status. •Communication—All information is hosted on a cloud server that can be accessed by anyone who is given a username/password. This improves transparency and communication throughout the commissioning process and provides a more efficient method of tracking Cx status. •Data Output—The data captured throughout the commissioning process (equipment, make, model, serial number, location, etc.) can easily be exported from CxAlloy to most systems. As the phases of construction near completion, McKinstry’s commissioning engineers will begin testing mechanical, electrical, and control systems for proper functionality. They will work closely with our construction manager to enable timely testing. This is of critical importance in occupied critical spaces as un-commissioned systems are not acceptable. The goal of the commissioning process is to deliver a final product with 100% confidence in the performance of the building and its ability to meet Vail’s goals and the performance that McKinstry has provided. OWNER TRAINING Facilities staff have a direct impact on annual-savings achievements, maintenance of occupant comfort, and extension of equipment life; thus, staff training is a critical component of all McKinstry projects, large or small. We will host an on-site training session and record this to post on Vail’s SharePoint site (or multiple sessions, if needed) for all pertaining elements of the Vail projects. The McKinstry Site Superintendent and/or Project Engineer will facilitate the training, an engineer will review the entire system, and the appropriate vendor will address equipment specifics. McKinstry will first develop a training agenda and schedule, working with Vail to incorporate any specific topics you wish to address. Typically, trainees include building operators, maintenance personnel, utility staff, sustainability specialists, and others identified by Vail. We can provide initial on-site training by equipment vendors and, in some cases, by a factory-certified instructor. As part of the training program, McKinstry provides instruction on planning and strategies for building maintenance – crucial for long-term savings, occupant comfort, and sustainability. TRAINING GOAL Extend new and existing equipment life Ensure proper operation and maintenance procedures are adequately performed Empower Vail facility staff for the long term TRAINING KEY POINTS Comprehensive Tailored to Vail Transfers all design and construction information Empowers facility staff to operate, maintain, and lead emergency shutdown procedures TRAINING 122 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 43 2.Project Approach TRAINING PROPOSED QUANTITY DURATION TOPICS Traditional Energy Measures Multiple 1-6 hours •Proper maintenance and operation, warranty procedures Solar PV As needed 1 hour •Maintenance of solar •Cleaning of panels •Warranty – labor and parts MCKINSTRY WARRANTEES/GUARANTEES: MINIMUM OF 1 YEAR INCLUDED We commission projects to ensure all equipment and systems installed will meet or exceed performance standards. We guarantee installation and labor for at least one year on the entire project against defects. For individual equipment, we carry the standard manufacturer’s warranties, yet based on our relationship with local vendors, we will extend warranties at no or low cost and transition these over to your team after the full project one year warranty is completed. Your warranty time-period starts at date of substantial project completion or occupancy. If equipment is used for temporary service, its warranty date typically will start when it is put into service. If Vail desires, we can upload warranty information and expiration dates into any CMMS so that if a work order is generated for an asset under warranty, the maintenance staff will know and be able to have the problem resolved at low or no cost. Similarly, we can create work orders for preventative maintenance that will ensure that warrantees will be honored, and we can also extend the full project 1-year warranty if Vail desires. McKinstry offers more options due to our network of buying power – we are able to reduce the initial cost of equipment, in addition to being able to arrange for extensions to the warranty period of the equipment. This combination of strong buying power and extended warranties gives us a value-added advantage we will pass on to you. POST-INSTALLATION REPORT The results of the Measurement and Verification activities conducted immediately following project installation are documented in a Post- Installation Report. Although this report is not mandated by the State of Colorado’s master EPC contract, its use is strongly recommended and something that our team performs for every EPC project. The Post- Installation Report is completed within 90 days of construction close-out and documents the results of M&V activities conducted after project implementation. Additionally, this report will document any potential changes in the contracted project scope and the expected energy savings based on the actual installed conditions, confirming, or updating estimated values regarding the performance of the new equipment. The Post-Installation Report provides an important piece of project documentation as it accounts for any project changes that may otherwise be unclear in retrospect. This will ease any concern that Vail may have at this point regarding savings. 123 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 44 2.Project Approach PROVISION OF RECORD DOCUMENTS We develop detailed as-built drawings for the project and combine these into a comprehensive set of record drawings that depict the actual work completed. Since we often work off as-builts for our retrofit projects, we truly understand the importance of accurate and comprehensive as-builts and use this as a guiding principle as we assemble our closeout packets. We will first listen to what is of value to the building owner and operator and meet their needs with what, and how, we turn over documents. That spirit applies to record documents, historical information, owner training, attic stock, trending data, go-forward building optimization plans, preventive maintenance plans, etc. As it relates specifically to record documents, possible formats include: •Hardcopies, if desired •PDF library on flash drives, if desired •CAD and/or PDF library posted on Vail’s preferred file sharing site 2.5 Measurement and Verification Discuss your firm’s approach to measurement and verification. Describe how your team works with clients to identify and report on energy savings and/or potential energy savings shortfalls. Measurement and Verification (M&V) is a very important part of the EPC process, and our team wants to ensure that Vail has a full understanding of how its energy savings will be proven, measured, and verified on an annual basis. We will host two separate M&V workshops for Vail – a 101 session early in the project and a more detailed selection session after the 60% audit meeting. This latter meeting is designed to explain how Vail’s specific EPC project performance will be measured and verified by using the protocols outlined in the International Performance Measurement and Verification Protocol (IPMVP). During this second meeting, we develop the preliminary M&V plan for the measures under development and begin discussions on what key performance indicators (KPIs) will need to be measured to verify performance. If select KPIs require additional equipment to be installed during construction, we will work with our subcontractors to get accurate prices to include such equipment in our guaranteed maximum price. We discuss the cost to measure and verify versus the risks taken by McKinstry or the customer. We recommend that our customers have their third-party representative from the Colorado Energy Office attend this meeting to help make decisions on how M&V is done for each scope item. This is your project and M&V requires collaborating with Town stakeholders to ensure that we select a plan that meets Vail’s expectations and needs during of the M&V period. We want facilities and finance involved in the initial conversations to ensure that everyone is on the same page. MCKINSTRY M&V STEPS DETERMINE M&V OBJECTIVES SELECT M&V PROTOCOL DEVELOP M&V PLAN MEASURE BASELINE CONDITIONS MEASURE POST - RETROFIT CONDITIONS PERFORM PREVENTATIVE AND CORRECTIVE ACTIONS VERIFY PROJECT PERFORMANCE 124 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE |45 2.Project Approach WHY MEASURE AND VERIFY? With ever-increasing utility rates, shrinking operating budgets, and increasingly complex operating systems, owners are faced with numerous challenges in delivering high performance operations in a demanding market. Increasing compliance requirements from governments and awareness of economic, environmental, health and social costs of greenhouse gas emissions are additional compelling incentives on both public and private sector owners to increase the rigor and transparency of energy performance of their facilities. Determination of energy savings is a challenge, and requires both accurate measurement and repeatable methodology, which we achieve through M&V. BEST PRACTICES FOR M&V M&V for energy projects assists in accurately determining the success of energy efficiency efforts by: •Increasing the reliability and level of savings •Reducing transaction costs by providing agreed upon M&V methodologies for the national industry •Lowering the financing costs and risks by providing standardization of M&V for specific projects INDUSTRY PROTOCOLS The Efficiency Valuation Organization (EVO) is a non-profit organization dedicated to creating M&V tools to promote building efficiency. EVO publishes the International Performance Measurement & Verification Protocol (IPMVP) Volume 1, “Concepts and Options for Determining Energy and Water Savings”, which provides the guidelines and protocols for M&V. In addition, federal projects follow a similar protocol under the Federal Energy Management Plan (FEMP) guidelines. These guidelines provide four options for M&V including Option A: Retrofit Isolation with Key Parameters; Option B: Retrofit Isolation with All Parameters; Option C: Whole-Building Data Analysis; and Option D: Whole-Building Calibrated Simulation. 125 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 46 2.Project Approach ABOVE AND BEYOND M&V: REAL TIME MONITORING OF SAVINGS We will propose that Vail leverages McKinstry’s real-time monitoring of energy systems which can identify problems that might otherwise have gone unnoticed. These systems also have the opportunity for greater efficiency even when systems are being operated as intended. Monitoring allows for relatively easy reductions in energy use, and it allows those reductions to be more consistent and persistent. Commissioning can identify if a boiler was installed according to the manufacturer’s recommendations, but it cannot determine whether that boiler is running longer than originally intended or how a simple adjustment of the temperature may impact the efficiency of the entire building. McKinstry will combine remote data analytics and human- based on-site engineering analysis. Real time monitoring engages the building operators to identify previously unrecognized inefficiencies in energy system operations, facilitates the application of diagnostic protocols, documents energy savings from operational improvements, and ensures persistence of savings through ongoing commissioning (Cx). This will be of value to Vail and help all teams ensure persistent savings for years post- construction. Other benefits include: •Continuous retro-commissioning of systems •Quick detection of outliers and underperforming equipment •Ability to scale across building automation systems •Persistence of Energy Savings and Performance Testing •Potential to identify and facilitate additional energy savings throughout Vail from real-time data 2.6 Other Discuss your firm’s experience in other, supporting areas, such as Staff Engagement and Behavior Modification. OUR STAFF ENGAGEMENT AND BEHAVIOR MODIFICATION PROGRAM As part of our energy performance contract, we have the ability to co-develop a behavioral engagement platform with Vail through our powerED program. Given the long-term goals of the Town of Vail regarding carbon emissions reductions and the desire by Vail residents for energy and renewable energy education, this may be of interest to Vail and Town stakeholders as it will help to provide training opportunities, education around installed measures, and communication/PR for staff and the community – all bringing positive media to Vail. 126 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 47 2.Project Approach powerED is a behavior-focused energy awareness and operational efficiency program designed to reduce costs, increase efficiency, and promote environmentally conscious operations within facilities across Vail to facilitate further GHG emissions reductions and cost savings after the EPC has been constructed driving additional cost and energy savings for years to come. Our program promotes active participation from Town employees and residents with careful tracking of resources, a targeted campaign, and competitions with rewards and prizes to encourage participation. Additionally, powerED contains an interactive, online dashboard that can be accessed and displayed across multiple Town facilities as a highly effective communication tool to emphasize the staff’s role in achieving measurable results and improving transparency. We also have a phone application that the community can log into to follow along on sustainability progress! McKinstry has seen success through powerED with other Colorado EPC clients such as the City of Boulder, City and County of Denver, City of Lakewood, Colorado School of Mines (video here!) , and South Suburban Parks and Recreation – all of whom would be more than happy to speak with you about our current engagement projects with their team. We believe that by adopting a strategic cultural and an operational approach throughout the Town, Vail can increase efficiency and achieve substantial, quantifiable financial results through the powerED program. We do guarantee savings through this program and have quantified these – through a rigorous M&V process – for many of our clients across the nation exceeding over $23M in utility savings since 2010 through this program alone. Utility Meter Savings – Reveal Energy Benchmarking – Reveal Program Statistics – Reveal 127 3 Cost and Pricing 128 TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 49 3.Cost and Pricing 3.1 IGA Pricing The CEO has standard pricing for IGAs, based on the location and square footage of the public sector commercial building to be audited. (See following table.) McKinstry acknowledges and accepts the CEO standard IGA pricing shown in the table below and will use this pricing structure in our project with Vail. STANDARD IGA PRICING TABLE Tiered Pricing ($/sq ft) Total Facility Square Footage Under 250K 250K – 500K 500K + Distance from CEO 1580 Logan, Denver Under 75 miles $0.250 $0.225 $0.200 75 – 150 miles $0.275 $0.250 $0.225 Over 150 miles $0.300 $0.275 $0.250 Based on the table above and square footage listed in the RFP of 293,489 square feet, the total audit cost will be $73,372 (293,489* $.25/SF). This audit pricing will be finalized during the contract negotiation period with Vail. The facility square footage only accounts for the occupied spaces and we would discuss how to price the audits for the parking garages and snowmelt systems separately. The audit cost of the IGA will be fully funded from savings and rolled into the final EPC project cost. 3.2 Project Pricing Please use Attachment B Cost and Pricing Tool to identify the percentages proposed for this specific project that are equal to or less than the maximum rates stated in your Base Contract with CEO, based on the size, scope and location of the specific project. COLORADO ENERGY OFFICE COST AND PRICING WORKSHEET As requested, McKinstry has included the completed CEO Cost Estimate Tool shown below and included in Excel format along with this proposal submission. Based on our previous experience working with clients such as Vail, we feel it is important to understand how the project costs might be applied to a very large, straightforward project greater than $5 million (lower percentages within the table below) or a small, complex project of $1 million (higher percentages within the table below). Therefore, we have included a range of percentages that can apply to projects of a variety of sizes and complexity. Additionally, if it is decided that some buildings be removed from the scope throughout the audit, the pricing ranges below include flexibility to reflect those decisions upon award. In addition, we will work with you to arrive at a reasonable cost to audit (if even necessary) the parking garages. 129 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 50 3.Cost and Pricing A B C D E F G H I Project Costing Categories IGA Contract Maximum % of Total Project Cost Actual Final IGA Calculated % of Total Project Cost Actual Final IGA Cost Sub-Totals Totals Notes 1 Investment Grade Audit (IGA) 2 Total Facility Area 293,489 $293,489.00 Unique for each project 3 $ / Sq Ft 0.25$ $0.25 See Standard IGA Pricing Table tab. 4 73,372$ G4 = F2*F3 5 6 Implementation Costs 7 Pre-Construction Costs* 8 Design and Other Engineering 5% - 8%0.00%-$ % in column E is calculated from estimated project amount 9 Pre-Construction Services 3% - 5%0.00%-$ % in column E is calculated from estimated project amount 10 Other Pre-Construction Costs 2.5% - 4%0.00%-$ % in column E is calculated from estimated project amount 11 Pre-Construction Cost Subtotal 0.00%-$ G11 = sum (F8:F10) 12 Construction Costs* 13 Trade Subcontracts 0.00%-$ % in column E is calculated from estimated project amount 14 Design/Build Subcontracts 0.00%% in column E is calculated from estimated project amount 15 Direct Purchase Equipment 0.00%% in column E is calculated from estimated project amount 16 Construction Management 6% - 8%0.00%-$ % in column E is calculated from estimated project amount 17 Project Engineering 3% - 4%0.00%-$ % in column E is calculated from estimated project amount 18 General Conditions 1% - 2%0.00%-$ % in column E is calculated from estimated project amount 19 Construction Completion 3% - 6%0.00%-$ % in column E is calculated from estimated project amount 20 Other Construction Costs 3% - 6%0.00%-$ % in column E is calculated from estimated project amount 21 Construction Cost Subtotal 0.00%-$ G21 = SUM(F13:F20) 22 Implementation Costs Subtotal*-$ H22 = SUM(G11+G21) 23 24 Profit*9%9%-$ Value in column H is calculated from estimated project amount 25 26 Estimated Project Amount*-$ H26 = SUM(H22 + H24) 27 28 Contingency*3-5%0%-$ Value in column H is calculated from estimated project amount 29 30 Total Funded Amount*73,372$ H30 = SUM(G4+H26+H28) Investment Grade Audit Total Cost 130 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 51 3.Cost and Pricing FINANCIAL STABILITY AND BONDING CAPACITY We are locally operated, financially strong, and can fully bond any project desired by the team. We work diligently to maintain an extensive bonding capacity. Over our 60+ year history, McKinstry has been profitable every year except one, which speaks to our ability to guarantee project costs and savings over the long term. McKinstry can provide a performance bond for the construction phase with our total bonding capacity as a company being $600,000,000 and a per-project total of $250,000,000. We are here to stay. We have been a successful company for over half a century and will truly be here for the life of your building. DRIVING BASE COSTS DOWN As you can see from the graphic below, driving waste out of the supply chain and procurement/management process keeps the base costs of an ESCO project as low as possible, reducing the overall cost to Vail. Most ESCOs will push the design engineering, commissioning, and equipment procurement down to their subcontractors and still charge fees for these services and mark-ups. Thus, lower fee percentages applied to higher project base costs can lead to higher overall project costs for Vail as demonstrated below. 131 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 52 3.Cost and Pricing 3.3 Annual Costing Provide estimated anticipated costs for Warranty, Measurement and Verification, and other pertinent categories below and how they are determined and applied to a project. Costs for the project shall not exceed the maximums established in the table below. Determination of annual costs may be challenging without knowing project scope; therefore, elaborate on how annual pricing is determined. McKinstry is providing further explanation for each annual cost category as described below. CATEGORY OF ANNUAL COST TOTAL ANNUAL COST HOW PRICE IS DETERMINED YEARS APPLIED (ONE-TIME, ANNUAL, ETC.) Warranty Warranty is typically 0.5-1% of total project cost but will be determined based on finalized measures installed. Actual cost percentage and/or price is highly dependent upon the measures installed as part of the final project. One year on the entire project will be automatically included with the option to extend beyond that period, if desired. All manufacturer’s equipment warranties will be transferred to Vail after the parts and labor project warranty has terminated. Measurement and Verification Typically, 0.5-1% of total project cost, dependent on final scope and M&V strategy selected. Actual cost percentage and/or price is a collaborative process with Vail and is determined based on the final measures installed, recommendations from the Colorado Energy Office, and determination of the highest value approach for Vail. The first three (3) years are required under the Colorado Energy Office program and State legislation with the option to extend at the request of Vail upon completion of Year 3. Other Costs will be determined if other annual services are needed or desired. Actual cost percentage and/or price is dependent upon the final measures included for implementation and which services are selected by Vail. Vail will have the option to determine years of service and scope of any post-construction services such as behavior engagement, on-going retro- commissioning, etc. 132 4 Best Value 133 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 54 4.Best Value Briefly describe how the company’s approach to performance contracting delivers best value for the investment. The responding company shall also describe any utility rebates or other financial incentives or grants it can potentially provide and/or facilitate. McKinstry’s Best Value Approach to Energy Performance Contracting McKinstry has four key principles that we will focus on during the energy audit phase to provide the best value to Vail. These principles have been developed based on our previous experience with local governments like Vail and our past Energy Performance Contracting projects. The following list contains our unique approach for this project: Be fiscally responsible of taxpayer dollars and avoid replacing equipment before end-of-life. Completely tearing out and replacing systems has higher embodied carbon, is usually more costly and always more disruptive to teams. During the investment grade audit, we will look only at projects that reduce energy load through efficiency AND replace equipment that is nearing the end of life to be a good steward of taxpayer dollars. This will typically save 25-50% of the capital cost versus replacing equipment that is not at end of life. We will also work within the context of existing equipment and reuse existing systems wherever possible. We will ensure all proposed measures align with Vail’s goals and show the community options that are fiscally responsible. WHAT SETS MCKINSTRY APART? Attention to Detail and Feedback Experience Working in Municipal Facilities Collaboration with Public and Private Stakeholders Minimal Disruption to Operations and Occupants Energy Savings Driven Outcomes Previous Experience with Vail’s Buildings Enhancing Occupant Comfort and Reliability of Systems 134 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 55 4.Best Value Use tried and true solutions for energy reduction. Energy and EUI reduction can be achieved via current technologies – even when all the low hanging fruit has been implemented. There are plenty of technologies on the market today that have been well-established and researched that can both lower energy usage and have worked in many past projects. By leveraging equipment that has been widely adopted and tested, we will reduce the overall project risk, reduce the potential for equipment failure early, reduce O&M expenses, and ensure the smoothest transition to operational teams. This will save Vail up-front dollars and life-cycle dollars for recommended measures. We will work to quantify all these project co-benefits and list on-going operations within the post-construction plans to ensure all questions and concerned are answered prior to installation. Efficient but effective process. As we work through the steps of the audit, there will be full transparency within each measure in regard to how it builds off our previous work – including the Solar PV feasibility study, cost effectiveness as it relates to EUI reduction, return on investment and simple payback. EUI reduction – sometimes but not always – can be costly, and thus finding additional benefits beyond cost is critical when looking at the full picture. Considerable financial incentives are available from various sources at the state, utility, and local level to offset the cost gap between energy efficient options and business as usual scenarios. Many sustainability measures, if done strategically, can provide other benefits such as resiliency, improved comfort, productivity increases, and better air quality – opening value streams that offset additional costs. The graphic to the right expands upon the concepts that we will deploy throughout the audit phase. Cost-effective innovation in action. Finally, our team has the tools and skills to vet and quantify innovative ideas for Vail during the energy audit phase. This allows McKinstry to push the envelope with confidence in a guaranteed cost and savings environment and provide the best solutions for our client’s facilities while integrating the three principles above. We encourage our engineering and design team to help our clients experience new levels of pride in their facility stewardship through innovative, budget-beneficial design. With facility and sustainability goals in mind such as having electrification adopted by 15% of all buildings by 2030 and 60% by 2050, our team will work throughout the audit to define four (4) separate categories of measures: •Energy Efficiency •HVAC Electrification, Efficiency, and Optimization (We have a dedicated team for electrification and decarbonization standing by to help meet your electrification goals. See our Catalyst Building at https://www.mckinstry.com/all-features/zero-carbon- catalyst-building/) •On-Site Renewable Energy •Grid-Purchased Renewable Energy From here we will collectively work with Vail on creating the highest value project while minimizing cost to achieve goals. EUI Reductions for Vail 135 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 56 4.Best Value McKinstry has built a strong partnership with our city and has developed relationships with our staff members. These efforts have facilitated effective collaboration and communication throughout the development, implementation and commissioning efforts . -Joe Castro, PE, (Former) Facilities and Fleet Manager City of Boulder OUR GOLDEN, COLORADO CAPABILITIES FOR LIGHTING Interior and exterior lighting upgrades are our specialty and is a key opportunity for Vail – it will be important to have a robust lighting team on this project. McKinstry’s in-house lighting team will develop real-world lighting solutions that significantly lowers energy expenditures while supporting system integrity and enhancing aesthetic appeal. Our engineering and design team has helped to provide design-build lighting services for over 75 million square feet of facilities including sports facilities and complexes, commercial office buildings, corporate headquarters, data centers, museums, hotels, K-12 facilities, and warehouse facilities. Our commitment is to provide our clients with the highest level of service possible while delivering cost-effective, innovative solutions. McKinstry Lighting Solutions Team will deliver best value based on the following: •All key functions of our Lighting Solutions team reside within McKinstry. This includes lighting project audit and estimation, electrical engineering design, energy engineering, construction management and commissioning. Our internal procurement team can purchase materials direct from manufacturers or manage an RFP process through distributors which guarantees the most competitive pricing available. Our internal procurement team eliminates all subcontractor markups on materials thereby maximizing the project value for Vail. •Our lighting team has key personnel based in our Golden, CO office. Members of this local lighting team have decades of experience in the lighting industry along with decision-making authority to provide timely deliverables while delivering the correct solution for Vail. Because our team is in-house and local, we can be more flexible and agile during the design and implementation phase, which allows our team to deliver a superior project at a lower price point than our competitors. Since 2009, our Lighting Solutions Team of 15 dedicated experts, has implemented over $1.5 billion in energy efficiency projects. Most recently this team has completed the audit and design of some of the most complicated lighting and lighting controls projects in the country, including the Phoenix Convention Center, Denver International Airport and Salt Lake City School District. McKinstry Lighting Solutions Team Phoenix Convention Center Project Phoenix Convention Center 136 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 57 4.Best Value DEDICATED FUNDING AND INFLATION REDUCTION ACT (IRA) RESOURCE FOR VAIL The selected McKinstry team has vast experience working on the funding and financing of EPC projects throughout Colorado and we plan to include the following strategies through a dedicated Project Funding and IRA Resource for Vail, Sara Berry-Maraist. IRA FUNDING There are some very impactful incentives built into the Inflation Reduction Act. Most notably, non-taxable entities are now eligible to take advantage of the Investment Tax Credit (ITC) in the form of "direct pay”. Many of the IRA programs guidance is still being issued and finalized by Treasury, but McKinstry has a dedicated team monitoring the changes daily for all our clients. We want our clients to know firsthand of all funding opportunities. IRA Eligible Technologies Now is the time to think big and act boldly to accelerate energy resiliency planning, clean energy deployment and high-performing building retrofits. The IRA presents opportunities to meet Vail’s energy needs sooner while readying your operations for long-term resiliency, decarbonization and equitable outcomes for generations to come. Utility Funding and Rebates Seeking and securing utility-based incentives for a customer is a critical part of the funding strategy an ESCO brings to a performance contract, and McKinstry has the expertise and resources to secure these funds. Our local team in the Rocky Mountain Region has significant experience working with Vail’s utilities, including Holy Cross, through our work with other clients like City of Aspen, Aspen School District, and others. Sara will serve as Vail's Federal and State Funding Resource. Sara stays current with federal/state funding guidelines, compliance requirements, and new funding announcements. She will help Vail understand their eligibility for federal/state tax incentives, grants, and other programs. 137 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 58 4.Best Value Grant Opportunities Check out some of our recent grant-funded projects in Colorado! Before seeking financing, McKinstry will diligently explore all opportunities to bring additional funding to your program through grants and rebates. We are the local experts when it comes to leveraging state and federal grant and stimulus funding for energy efficiency projects and can write and/or support all grant requests on Vail’s behalf. We have helped to secure over $30 million in outside grant/rebate funding for our Colorado clients’ energy projects. Based on our knowledge and experience, the following are current opportunities for funding Vail’s project: Colorado Public Building Electrification Grant Colorado Department of Local Affairs Grants (used in community solar projects) Resiliency Challenge Renewable Energy Grant Energy and Mineral Impact Grant State of Colorado Geothermal Grant Congressionally Directed Spending FEMA Building Resilient Infrastructure and Communities (BRIC) Grant Inflation Reduction Act Investment Tax Credit – Direct Pay for renewable energy systems, battery storage, EV charging Tax Credit – Direct Pay for installation of chargers in low-income/rural areas US Department of Energy Grants Utility rebates And many more that will be investigated throughout the audit process! Grants and Stimulus Funding Reallocated like-for-like capital replacement budget Utility and energy savings internal borrowing from enterprise funds with additional capital availability Sustainability or climate tax More options investigated during financial process and finance team interviews Capital and Internal Funding Equipment Lease Purchase Bonds Certificates of Participation Energy-as-a-service Infrastructure-as-a-service Power-purchase-agreements More options investigated during financial process and finance team interviews Financing Options 138 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 59 4.Best Value LOCAL SUB-CONTRACTOR EXPERTISE If subcontractors are needed, McKinstry is committed to engaging the local subcontractor community in Vail to help promote and enhance the local economy. Our team has experience working with minority and women- owned businesses (MWBE) and has exceeded other Town’s MWBE goals on projects. Leveraging our current contractor relationships in Colorado, we will drive a seamless process during construction free of any overlap of duties and ensure that Vail receives the best pricing, subcontractors, and performance while also meeting all stated project goals. WE ARE A PRIVATELY OWNED COMPANY McKinstry remains a privately held company, meaning that we answer only to our clients and ourselves. We are curious engineers, highly capable development and construction professionals, and nimble problem solvers. Innovating with clients is in our DNA. While there are specific nuances with every project, success still comes down to having people on staff who understand technology, development, and construction, and McKinstry has over 60 years of proven experience doing this with the client in mind. WE ARE ALIGNED WITH THE VAIL’S GOALS AND IMPLEMENTING SIMILAR PROJECTS AT MCKINSTRY! McKinstry believes in making a positive difference for both people and the planet. So much so that these are guiding pillars in our legal operating agreements. Headquartered in Washington, McKinstry supports the WA State Legislature’s work in 2012 to create a Social Purpose Corporation statue, Washington’s version of B-corps. As a result, McKinstry updated our own operating agreements to become the largest social purpose business and first social purpose LLC in Washington state in alignment with this statue. In doing this, McKinstry has committed that the purpose of our business is not necessarily to maximize investment returns for our owners, but rather to balance profit with the interests of our employees and our environment. WE ARE COMMITTED TO VAIL’S SUCCESS! McKinstry is the ideal partner for the Town of Vail's EPC project because we prioritize collaboration, deliver exceptional value, and possess unmatched expertise in high-altitude, municipal energy efficiency, electrification, solar and energy storage projects. Our commitment goes beyond just words; we have the proven processes and local experience to ensure a successful project that aligns with Vail's unique needs and long-term vision. The McKinstry ScaleUp program reflects the values, goals and teamwork that McKinstry provides to their subcontractors. Providing mentorship to protégé organizations like us, to help us grow and to learn how businesses at a larger scale operate.” -Michelle Chavez Midnight Metals | MWDBE Partner McKinstry was the #10 signatory of The Climate Pledge, and we are now actively pursuing our path to Zero Carbon. SCALEUP WITH MCKINSTRY TOGETHER, BUILDING A THRIVING PLANET 139 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 60 4.Best Value McKinstry’s Golden Office IN SUMMARY, MCKINSTRY DELIVERS BEST VALUE BY: Collaborative Approach: We believe in frequent communication and building strong partnerships. Our team will work closely with Vail throughout the entire project lifecycle, ensuring alignment with your goals and addressing any concerns promptly. Local Expertise: McKinstry boasts the largest ESCO team in Colorado, based right here in Golden. This local team, backed by a national network of 2,500+ energy experts, offers unparalleled knowledge of the Colorado market and the specific challenges of high-altitude environments. Proven Track Record: McKinstry has a demonstrably successful history in Colorado's municipal sector, delivering over $254 million in energy services across 252+ cities and counties. Locally, we've partnered with Aspen, Basalt, and Steamboat Springs, bringing valuable experience to the Vail project. Decarbonization Leadership: We are experts in developing innovative solutions to achieve decarbonization goals. Our experience in Steamboat Springs and other mountain communities exemplifies our ability to tailor solutions for high-alpine settings, and we are committed to aligning our approach with Vail's long-term sustainability vision. Long-Term Planning: We understand that funding can be a challenge. McKinstry has a proven track record of securing grants, particularly in rural Colorado. Our financial modeling expertise and access to diverse funding sources will be instrumental in navigating this aspect of the project. Shared Vision: McKinstry's unwavering commitment to combating climate change aligns perfectly with Vail's environmental stewardship values. This shared vision, coupled with our technical expertise, makes us the ideal partner for this transformative journey. Optimized Approach: Leveraging experience from over 30 Colorado municipal EPCs, McKinstry will implement proven strategies to ensure project success and deliver superior value. These strategies include: Expansive communication with Vail through weekly check-ins, office hours, and detailed meeting minutes. Comprehensive analysis of existing conditions and systems to ensure a smooth implementation process. Stakeholder alignment on project scope, expectations, and goals, including facility, financial, social, and sustainability objectives. 140 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 61 4.Best Value Finally, Our extensive Colorado EPC experience is unmatched by our competition. McKinstry has consistently managed over 50% of total energy projects under the Colorado Energy Office's EPC program for the past two years, showcasing our proficiency in assembling collaborative teams to benefit our clients. Furthermore, we continuously enhance our EPC process by drawing insights from previous projects. Regardless of size, we approach each project with equal dedication—ranging from a $200 retro-commissioning of a single equipment piece to an $83M performance contract, all executed with minimal disruption to our clients' facilities and operations. We know Vail and your buildings through our previous Solar PV feasibility study. We are excited to continue our partnership with Vail on this project to help achieve your sustainability goals and support your vision to be a recognized global leader in sustainability, demonstrate aggressive action on global climate change, resource efficiency, ecosystem protection and community awareness and education. Let’s build a thriving planet together! 141 Appendix 142 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 63 Appendix A: Key Personnel Resumes Stephan Rank, PE, CEM | PROJECT DIRECTOR WHY STEPHAN? Stephan brings extensive experience in energy audits, energy conservation measure development, cost estimating, utility rate analysis and optimization, heating and cooling load calculations, and life cycle cost analysis. STEPHAN’S ROLE As Project Director, Stephan is the single point of contact throughout the life of the project and will oversee team leads on development, construction, M&V, and on-going services. Stephan is responsible for overall client satisfaction and project success. PROJECT EXPERIENCE City and County of Denver; CO Project Director for Investment Grade Audit and $16.9M Energy Performance Contract. Foothills Park and Recreation; Littleton, CO Project Director for development of $8M Energy Performance Contract. Adams 12 Five Star School District; Thornton, CO Project Director for development of $2M Energy Performance Contract. Aurora Public Schools; Aurora, CO Project Director for development of $7M Energy Performance Contract. Salt Lake City School District; UT Project Director for $29.3M Comprehensive Zero-Over-Time roadmap for the District to achieve full zero carbon performance in their facilities by 2040, including facility electrification over five phases. City of Arvada; Arvada, CO* Energy Performance Contract Arapahoe County, Phase 2; Various Cities, CO* Energy Performance Contract; $7.9M Persigo Wastewater Treatment Plant; Grand Junction, CO* Energy Performance Contract Colorado Department of Transportation; Various Cities, CO* Statewide Energy Performance Contract; $9.5M Boulder Community Hospital Complex; Boulder, CO* Sustainable Interior Deconstruction *Denotes project completed with another firm EDUCATION California State Polytechnic University, San Luis Obispo, B.S., Mechanical Engineering ACCREDITATIONS Professional Engineer (P.E.) in: CO, CA, AZ, UT, WY, NV Certified Energy Manager (CEM) TENURE In the industry since 1998 and with McKinstry since 2019. 143 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 64 Appendix A: Key Personnel Resumes Dan Gacnik, CEM | BUSINESS DEVELOPMENT MANAGER WHY DAN? Dan’s diversified experience in energy supply-side, energy services, and maintenance-related projects provides clients with specialized expertise in utility and operational savings, rebates, and creative funding opportunities, resulting in a comprehensive project approach. DAN’S ROLE Dan oversees client relationship and account management throughout projects. He assists with funding and financing strategy including the investigation of any available grants, rebates or other project funding sources; and ongoing client engagement and contracts. PROJECT EXPERIENCE City of Lakewood; CO Business Development Manager for development of $2.4M Energy Performance Contract. City and County of Broomfield; CO Business Development Manager for $96K Investment Grade Audit and Energy Performance Contract. Fremont RE-2 School District, CO; Florence, CO Business Development Manager for $3.2M Investment Grade Audit and Energy Performance Contract. Adams 12 Five Star School District; Thornton, CO Business Development Manager for development of $2M Energy Performance Contract. Aspen School District; Aspen, CO Business Development Manager for $2.0M Energy Savings Performance Contract. Aurora Public Schools; Aurora, CO Business Development Manager for development of $7M Energy Performance Contract. Denver Public Schools; Denver, CO Business Development Manager for $31M Energy Performance Contract. Colorado School of Mines; Golden, CO Business Development Manager for development of $4.8M PV Energy Performance Contract. University of Colorado; CO Business Development Manager for Investment Grade Audit and $5M Energy Performance Contract. EDUCATION University of Colorado at Boulder, B.S., Business Administration ACCREDITATIONS Certified Energy Manager (CEM) AFFILIATIONS Business Partner Representative for Rocky Mountain APPA Founding Member of Colorado APPA Energy Services Coalition– Colorado Chapter Affiliate Member Representative for Colorado School Plant Managers Association (CSPMA) TENURE In the industry since 1992 and with McKinstry since 2010. 144 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 65 Appendix A: Key Personnel Resumes Jordan Worthington, EIT | ACCOUNT EXECUTIVE WHY JORDAN? Jordan will leverage his technical background and expertise to ensure excellence throughout the entire project lifecycle. He is motivated to create long-term relationships with clients and to provide custom services that benefit both the client and surrounding community. JORDAN’S ROLE Jordan provides account management to ensure client objectives and goals are met, any issues are addressed, and schedule/deliverables are met in a coordinated and timely manner. PROJECT EXPERIENCE Town of Frisco; CO Account Executive for development of $71K Energy Performance Contract. City of Boulder; CO Account Executive for development of $1.8M Energy Performance Contract. Adams 12 Five Star School District; Thornton, CO Account Executive for development of $2M Energy Performance Contract. Aurora Public Schools; Aurora, CO Account Executive for development of $7M Energy Performance Contract. North Park School District; Walden, CO Account Executive for Investment Grade Audit and $1.2M Energy Performance Contract. JeffCo Public Schools, Phase 1; Lakewood, CO Account Executive for $1.5M Design-Build LED lighting retrofit project. JeffCo Public Schools, Phase 2; Lakewood, CO Account Executive for $2.7M Design-Build LED lighting retrofit project. Atlanta Neighborhood Charter School Elementary Campus* Energy and water assessment including implementation support for web-based HVAC controls, LED lighting and controls, window film, high-performance plumbing fixtures, and solar electricity. Projected $28,000 annual utility savings. Chatsworth Boys and Girls Club* Nearly net-zero energy project and energy and water assessment including implementation support for web-based HVAC controls, high-performance HVAC, insulation upgrades, LED lighting and controls, high-performance plumbing fixtures, and solar electricity. Projected $6,000 annual utility savings. *Denotes project completed with another firm. EDUCATION The University of Georgia, Athens, B.S., Environmental Engineering ACCREDITATIONS Engineer in Training (E.I.T.) TENURE In the industry since 2015 and with McKinstry since 2019. 145 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 66 Appendix A: Key Personnel Resumes Ashley Brasovan | PROGRAM AND FUNDING MANAGER WHY ASHLEY? Ashley has successfully secured $100M+ financial packages for public sector efficiency projects within Colorado – giving her a hands on understanding of how a a roadmap and facilities assessment project can be implemented. ASHLEY’S ROLE As Program and Funding Manager, Ashley will ensure Vail’s objectives and goals are met, any issues are addressed, and schedule/ deliverables are achieved in a coordinated and timely manner. She will also support financial strategies, grant funding, and delivery of the benefit/ drawback analysis. PROJECT EXPERIENCE City of Louisville, CO Study Director for the development of a comprehensive city-wide internal decarbonization action plan to achieve cost- effective decarbonization by 2030. Huerfano County, CO Program Manager for 33 building decarbonization and energy efficiency project. $2-$3 million construction contract pending. Denver International Airport, CO Project Executive for 8.5 million sq. ft. decarbonization and energy efficiency project. $82 million project. City of Lakewood, CO Program Manager for energy efficiency program and Solar Feasibility Study and asset management dashboard. Northwest CO Regional Solar Resiliency Project, CO Project Director for 15 sites in Hayden, Yampa, Craig, Steamboat Springs, and Oak Creek; Groundmount, roof-mount and battery storage. City of Golden, CO Program manager for asset management dashboarding services and decarbonization pilot project. City and County of Denver, CO Program manager for energy benchmarking project, energy efficiency audit of 4M square feet, asset management dashboard, and solar feasibility and implementation work of over 15MW. EDUCATION Duke University- M.A. Energy Management Duke University – B.A., Earth and Ocean Science TENURE In the industry since 2014 and with McKinstry since 2016. 146 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 67 Appendix A: Key Personnel Resumes Brian Gamet, CEM | DIRECTOR OF PROJECT DEVELOPMENT WHY BRIAN? Brian has led teams that have implemented and developed $500+ million in construction, energy performance contracting, and design-build projects.. He has experience in federal, regional state and local government facilities, as well as schools, hospitals, and universities. BRIAN’S ROLE Brian’s primary responsibilities are to lead the regional development organization in the development of Energy Performance Contracts. He supports the analysis, energy auditing, engineering, project scoping, financial feasibility analysis as well as technical documentation for driving best value in self-funding facility improvement and energy conservation measures. PROJECT EXPERIENCE Huerfano County; Walsenburg, CO Director of Project Development for development of $2.2M Energy Performance Contract. City and County of Denver; CO Director of Project Development for development of $16.9M Energy Performance Contract. City of Louisville; CO Director of Project Development for the development of a comprehensive city- wide internal decarbonization action plan to achieve cost-effective decarbonization by 2030. Foothills Park and Recreation, Phase 2; Littleton, CO Director of Project Development for Investment Grade Audit and $8M Energy Performance Contract. City and County of Broomfield; CO Director of Project Development for $96K Investment Grade Audit and Energy Performance Contract. Denver International Airport; CO Director of Project Development for development of $83M Energy Performance Contract. Fremont RE-2 School District, CO; Florence, CO Business Development Manager for $3.2M Investment Grade Audit and Energy Performance Contract. Denver Public Schools; Denver, CO Director of Project Development for $8.5M Energy Performance Contract. EDUCATION South Dakota, School of Mines, B.S., Mechanical Engineering University of Wisconsin, Electrical Systems Design University of Wisconsin, Piping Systems Design ACCREDITATIONS Certified Energy Manager (CEM) AFFILIATIONS Association of Energy Engineers TENURE In the industry since 1993 and with McKinstry since 2020. 147 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 68 Appendix A: Key Personnel Resumes Aaron Skroch, LEED® AP, CEM | PROGRAM MANAGER WHY AARON? Aaron is responsible for developing comprehensive and innovative energy- saving, facility solutions. He brings a diverse background of energy engineering, design engineering, project development, retro-commissioning, and project management. AARON’S ROLE As Program Manager, Aaron is responsible for oversight calculations, development measures and overall design team coordination and schedule. PROJECT EXPERIENCE Huerfano County; Walsenburg, CO Program Manager for development of $2.2M Energy Performance Contract. City and County of Denver; CO Program Manager for development of $16.9M Energy Performance Contract. City and County of Broomfield; CO Program Manager for $96K Investment Grade Audit and Energy Performance Contract. City of Lakewood; CO Program Manager for development of $2.4M Energy Performance Contract. City of Louisville; CO Program Manager for the development of a comprehensive city-wide internal decarbonization action plan to achieve cost-effective decarbonization by 2030. Foothills Park and Recreation, Phase 2; Littleton, CO Program Manager for Investment Grade Audit and $8M Energy Performance Contract. Northwest Colorado Regional Solar and Resiliency Project; Craig, Steamboat, Yampa, Hayden, and Oak Creek, CO Program Manager for $6M Solar and Resiliency Project across 15 different sites. Denver International Airport; CO Program Manager for development of $83M Energy Performance Contract. University of Colorado Boulder, MacAllister Building; CO Senior Energy Engineer for $10.7M Energy Performance Contract. University of Colorado Boulder, Wilderness Place; CO Senior Energy Engineer for $6.3M Energy Performance Contract. University of Colorado Boulder, Coors Event Center; CO Senior Energy Engineer for $2.4M Energy Performance Contract. EDUCATION Colorado State University, CO, B.S., Mechanical Engineering ACCREDITATIONS LEED Accredited Professional (LEED AP) Certified Energy Manager (CEM) AFFILIATIONS American Society of Heating, Refrigerating and Air- Conditioning Engineers (ASHRAE) TENURE In the industry since 2004 and with McKinstry since 2014. 148 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 69 Appendix A: Key Personnel Resumes Brian Boughton, CEM | SENIOR ENERGY ENGINEER WHY BRIAN? Brian’s collaborative, organized, and detailed-oriented skills align well with his responsibilities for gathering and documenting project information, including utility data, facility profiles, system operating characteristics, and site drawings. He draws from his technical and business experience in performing energy and operational savings calculations, using engineering theory and practical application to accurately define utility savings for clients. BRIAN’S ROLE As Senior Energy Engineer, Brian will perform technical analysis of utility data, auditing, and assists with field data gathering. He performs detailed engineering assessments, including baseline profiles, end-use and retrofit analysis as well as identifying opportunities for conservation and/or efficiency. He also works closely with the design team to develop scopes of work and guaranteed energy savings calculations. PROJECT EXPERIENCE City and County of Denver; CO Senior Energy Engineer for development of $16.9M Energy Performance Contract and $40M Community Solar project. Foothills Park and Recreation; Littleton, CO Senior Energy Engineer for development of $8M Energy Performance Contract. City and County of Broomfield; CO Senior Energy Engineer for $96K Investment Grade Audit and Energy Performance Contract. Denver International Airport; CO Senior Energy Engineer for development of $83M Energy Performance Contract. Aurora Public Schools; Aurora, CO Senior Energy Engineer for development of $7M Energy Performance Contract. Denver Public Schools; Denver, CO Senior Energy Engineer for $31M Energy Performance Contract. Salt Lake City School District; UT Senior Energy Engineer for $29.3M Comprehensive Zero-Over-Time roadmap for the District to achieve full zero carbon performance in their facilities by 2040, including facility electrification over five phases. EDUCATION The Ohio State University, Masters in Business Administration The Ohio State University, B.S., Industrial Engineering ACCREDITATIONS Certified Energy Manager (CEM) AFFILIATIONS American Society of Heating, Refrigerating and Air- Conditioning Engineers (ASHRAE) Association of Energy Engineers (AEE) TENURE In the industry since 2010 and with McKinstry since 2020. 149 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 70 Appendix A: Key Personnel Resumes Clay Herrin, PE, CEM, CMVP, CBCP, CDSM, LEED AP | MECHANICAL ENGINEER WHY CLAY? Clay has more than 26 years of experience in energy efficiency and construction creating comprehensive building projects for a wide range of clients. He has a dedicated focus on maximizing performance and efficiency and is appreciated by customers and teammates alike for his leadership, strategic thinking, and straight-forward communication. CLAY’S ROLE As the Mechancial Engineer, Clay serves as the engineer of record for projects and manages scoping, fees, as well as provides engineering insight into projects. He assists in communication and coordination efforts and also provides quality control and assurance by monitoring the design and reviewing deliverables throughout the life of a project. PROJECT EXPERIENCE Huerfano County; Walsenburg, CO Mechanical Engineer for development of $2.2M Energy Performance Contract. City of Durango; CO Mechanical Engineer for development of $5.5M Energy Performance Contract. City of Gunnison; CO Mechanical Engineer for development of $4M Energy Performance Contract. City of Boulder; CO Mechanical Engineer for Open Space and Mountain Parks A/C design. Denver International Airport; CO Mechanical Engineer for development of $83M Energy Performance Contract. Mount Carmel City Government; IL* Mechanical Engineer for development of $2M Energy Efficiency Project. City of Evansville; IN* Mechanical Engineer for development of $3M Energy Efficiency Project. McCracken County; KY* Mechanical Engineer for development of $2.5M Energy Efficiency Project. Boone County Fiscal Court; KY* Mechanical Engineer for development of $1.5M Energy Efficiency Project. City of Oak Ridge; TN* Mechanical Engineer for development of $4M Energy Efficiency Project. *Denotes project completed with another firm EDUCATION University of Southern Indiana, Masters, Business Administration Purdue University, B.S., Mechanical Engineering ACCREDITATIONS Professional Engineer (PE) Colorado #PE.0056641 Certified Energy Manager (CEM) Measurement & Verification Professional (CMVP) Building Commissioning Professional (CBCP) Demand Side Management Professional (CDSM) LEED Accredited Professional (LEED AP) TENURE In the industry since 1997 and with McKinstry since 2022. 150 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 71 Appendix A: Key Personnel Resumes Jarred Coulter, PE, CEM | ELECTRICAL ENGINEER WHY JARRED? With nearly three decades of experience in electrical design, construction, and project management, Jarred specializes in commercial and light industrial projects, renewable energy design-build, and energy management. Jarred's ability to organize and his attention to detail results in projects being finished within schedule and budget. JARRED’S ROLE As Electrical Engineer, Jarred will be responsible for electrical calculations, selecting, and sizing electrical systems, ensuring all applicable codes are met in the design, and adhering to the project’s design budget and schedule. PROJECT EXPERIENCE Huerfano County; Walsenburg, CO Electrical Engineer for development of $2.2M Energy Performance Contract. City and County of Denver; CO Electrical Engineer for development of $16.9M Energy Performance Contract and $40M Community Solar project. City and County of Broomfield; CO Electrical Engineer for $96K Investment Grade Audit and Energy Performance Contract. Denver International Airport; CO Electrical Engineer for development of $83M Energy Performance Contract. Salt Lake City School District; UT Electrical Engineer for $29.3M Comprehensive Zero-Over-Time roadmap for the District to achieve full zero carbon performance in their facilities by 2040, including facility electrification over five phases. Aurora Public Schools; Aurora, CO Electrical Engineer for Investment Grade Audit. Colorado School of Mines; Golden, CO Electrical Engineer for development of $4.8M Energy Performance Contract. University of Colorado Anschutz; Aurora, CO Electrical Engineer for CU Anschutz campus-wide Solar Feasibility Study. EDUCATION University of Idaho, B.S., Electrical Engineering North Idaho College A.S., Electrical Engineering and Mathematics ACCREDITATIONS Professional Engineer (PE), WA Electrical Administrator, WA Certified Energy Manager (CEM) TENURE In the industry since 1998 and with McKinstry since 2021. 151 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 72 Appendix A: Key Personnel Resumes Maya Kadi | DESIGN PROJECT ENGINEER WHY MAYA? Maya is enthusiastic in offering contributions for project ideas and solutions – she recently became actively engaged in the design of the mechanical systems for the Salt Lake City School District electrification heat pump project. She brings strong knowledge of radiant hydronics, ground source heat pump systems, and energy modeling among other things. She can proudly claim to be the first female in the U.S. to be certified as an ANSI-accredited ASSE 19210 radiant installer instructor. MAYA’S ROLE Maya oversees the comprehensive development of HVAC electrification and infrastructure solutions which includes reviewing designs for functionality, designing HVAC and plumbing systems for new and existing buildings, reviewing engineering design and energy model outputs, and assisting project teams with the implementation of project designs. PROJECT EXPERIENCE Huerfano County; Walsenburg, CO Design Project Engineer for development of $2.2M Energy Performance Contract. City and County of Denver; CO Design Project Engineer for development of $16.9M Energy Performance Contract and $40M Community Solar project. City of Gunnison; CO Design Project Engineer for development of $4M Energy Performance Contract. Fremont RE-2 School District; Florence, CO Design Project Engineer for $7M Energy Performance Contract. Salt Lake City School District; UT Design Project Engineer for $29.3M Comprehensive Zero-Over-Time roadmap for the District to achieve full zero carbon performance in their facilities by 2040, including facility electrification over five phases. Poudre School District; Fort Collins, CO Design Project Engineer for condition assessments and asset tagging of 56 district buildings as part of a high-performance bond planning project. Aurora Public Schools; Aurora, CO Design Project Engineer for development of $7M Energy Performance Contract. EDUCATION Notre Dame University – Louaize, B.S., Mechanical Engineering ACCREDITATIONS ANSI-accredited ASSE 19210 TENURE In the industry since 2017 and with McKinstry since 2022. 152 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 73 Appendix A: Key Personnel Resumes Crystal Davis, CEM | CONSTRUCTION SERVICES MANAGER WHY CRYSTAL? Crystal’s leadership, problem-solving, and effective communication, secured accolades as the 2021 Construction Manager of the Year for a $170 million revenue company and clinched the prestigious Project of the Year for orchestrating a groundbreaking 150 MW Solar Farm construction. Crystal is driven by a passion for mentoring, cultivating a vibrant workplace culture, and embracing challenges with unwavering dedication to excellence. CRYSTAL’S ROLE Crystal is responsible for managing the MTN region construction team and all construction management related functions including hiring and managing subcontractors, managing project budget and critical path schedule, all project- related contractual documents, and site supervision management support. PROJECT EXPERIENCE City and County of Denver; CO Construction Services Manager for development of $16.9M Energy Performance Contract and $40M Community Solar project. Denver International Airport; CO Construction Services Manager for development of $83M Energy Performance Contract. Origis, SkyHaw* 100 MW Solar Farm, $75M. Next Era; Elora, CO* 150 MW Solar Farm, $68M. *Denotes project completed with another firm EDUCATION San Joaquin Valley College, A.S., Construction Management ACCREDITATIONS Certified Energy Manager (CEM) TENURE In the industry since 2003 and with McKinstry since 2023. 153 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 74 Appendix A: Key Personnel Resumes Alexa Vinci | SENIOR CONSTRUCTION PROJECT ENGINEER WHY ALEXA? Alexa is skilled in fast-track scheduling in projects with a quick turnaround. Her time management, problem solving, and organization makes her an ideal project team partner. Her past experience in managing and leading Army Corps of Engineers jobs give her tremendous experience in complex projects. ALEXA’S ROLE As Senior Construction Project Engineer, Alexa will be responsible for supporting the design process, executing systems design, optimizing design, and providing constructability reviews. She will organize subcontractors and ensure all activities go smoothly throughout the construction phase. PROJECT EXPERIENCE City and County of Denver; CO Senior Construction Project Engineer for development of $16.9M Energy Performance Contract and $40M Community Solar project. Northwest Colorado Regional Solar and Resiliency Project; Craig, Steamboat, Yampa, Hayden, and Oak Creek, CO Senior Construction Project Engineer for $6M Solar and Resiliency Project across 15 different sites. Foothills Park and Recreation, Phase 2; Littleton, CO Senior Construction Project Engineer for Investment Grade Audit and $8M Energy Performance Contract. Fremont RE-2 School District, CO; Florence, CO Senior Construction Project Engineer for $3.2M Investment Grade Audit and Energy Performance Contract. Aurora Public Schools; Aurora, CO Senior Construction Project Engineer for development of $7M Energy Performance Contract. Coolidge Unified School District; Coolidge, AZ Senior Construction Project Engineer for development of $2.6M Alternative Program building renovation project. Colorado School of Mines; Golden, CO Senior Construction Project Engineer for development of $4.8M Energy Performance Contract. EDUCATION James Madison University, B.S., Chemistry ACCREDITATIONS OSHA 30 USACE Construction Quality Management Training TENURE In the industry since 2019 and with McKinstry since 2021. 154 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 75 Appendix A: Key Personnel Resumes John Musso, CEM, LEED AP BD+C, GPRO | SITE SUPERINTENDENT WHY JOHN? Hands-on field experience with HVAC, lighting, and other building retrofits gives John a unique perspective and skill set for managing projects and supervising subcontractors. Ability to recruit, lead and mentor a team of subcontractors to perform their duties at the highest level of quality and performance. JOHN’S ROLE As Site Superintendent, John is responsible for on-site supervision and coordination of all trades and subcontractors’ field activities. He also is responsible for preparing and completing all daily project documentation, overseeing compliance with on-site safety and environment issues, and overseeing all post-construction services. PROJECT EXPERIENCE City and County of Denver; CO Site Superintendent for Investment Grade Audit and $16.9M Energy Performance Contract. City of Lakewood; CO Site Superintendent for development of $2.4M Energy Performance Contract. Foothills Park and Recreation, Phase 2; Littleton, CO Site Superintendent for Investment Grade Audit and $8M Energy Performance Contract. Denver International Airport; CO Site Superintendent for development of $83M Energy Performance Contract. Denver Public Schools; Denver, CO Site Superintendent for Montbello High School $8.5M Energy Performance Contract. North Park School District; Walden, CO Site Superintendent for Investment Grade Audit and $1.2M Energy Performance Contract. Colorado School of Mines; Golden, CO Site Superintendent for development of $4.8M Energy Performance Contract. Colorado School of Mines; Golden, CO Site Superintendent for $8.5M Design-Build chiller plant. ACCREDITATIONS LEED Accredited Professional (LEED AP) BD+C (Building Design and Construction) Green Building Certificate Green Pro Sustainable Building Certificate Qualified Construction Supervisor in Colorado Qualified General Contractor's License in New Mexico, Arizona, and Nevada TENURE In the industry since 1978 and with McKinstry since 2011. 155 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 76 Appendix A: Key Personnel Resumes Tom Alvarez | SENIOR SAFETY PROGRAM MANAGER WHY TOM? Tom’s 20+ years of experience in health and safety allows him to create, monitor, and maintain safe projects. He works closely with advisory groups to ensure safe work planning is being used on-site to reduce the risk of incident and injury. TOM’S ROLE Tom delivers construction safety experience for the project and is responsible for McKinstry’s safety planning, training, compliance, and overall coordination. His expertise includes safety leadership, safe-work planning, safety training, construction safety and health, behavior-based safety, incident/injury-free environment, project safety audits and job-hazard analysis. Tom will help the team maintain our zero recordables record. PROJECT EXPERIENCE City and County of Denver; CO Senior Safety Program Manager for Investment Grade Audit and $16.9M Energy Performance Contract. Foothills Park and Recreation, Phase 2; Littleton, CO Senior Safety Program Manager for Investment Grade Audit and $8M Energy Performance Contract. Denver International Airport; CO Senior Safety Program Manager for development of $83M Energy Performance Contract. Colorado School of Mines; Golden, CO Site Superintendent for development of $4.8M Energy Performance Contract. Colorado School of Mines; Golden, CO Senior Safety Program Manager for $8.5M Design-Build chiller plant. Denver Public Schools; Denver, CO Senior Safety Program Manager for $8.5M Energy Performance Contract. Salt Lake City School District; UT Senior Safety Program Manager for $29.3M Comprehensive Zero-Over-Time roadmap for the District to achieve full zero carbon performance in their facilities by 2040, including facility electrification over five phases. Coolidge Unified School District; Coolidge, AZ Senior Safety Program Manager for development of $2.6M Alternative Program building renovation project. EDUCATION Trinidad State Junior College, A.A.S., Occupational Safety and Health ACCREDITATIONS NFPA 70E Standards OSHA 500 Course Instructor Confined Space Trainer Confined Space Air Monitor Technician Fall Protection Competent Inspector TENURE In the industry since 2002 and with McKinstry since 2022. 156 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 77 Appendix A: Key Personnel Resumes James Johnson, CCP | LEAD COMMISSIONING ENGINEER WHY JAMES? James has supported a variety of complex building projects including data centers and critical spaces. James brings extensive knowledge of HVAC systems and the commissioning process. JAMES’ ROLE James’ experience in new construction commissioning and existing building commissioning allows him to verify that systems function as intended and to identify potential areas of improvement for facility operations. His expertise has supported many municipal buildings, schools, colleges, universities, data centers, and commercial customers by utilizing his extensive knowledge of HVAC systems and the commissioning process. PROJECT EXPERIENCE City and County of Denver; CO Lead Commissioning Engineer for Investment Grade Audit and $16.9M Energy Performance Contract. City of Commerce City; CO Lead Commissioning Engineer for RCx services for the 90K sq. ft. Civic Center, a LEED® Silver certified facility. City of Lakewood; CO Lead Commissioning Engineer for development of $2.4M Energy Performance Contract. Foothills Park and Recreation, Phase 2; Littleton, CO Lead Commissioning Engineer for Investment Grade Audit and $8M Energy Performance Contract. City of Fort Collins; CO Lead Commissioning Engineer for RCx services through the Efficiency Works rebate program. City of Boulder; CO Lead Commissioning Engineer for RCx services for 14 City-owned facilities totaling 474,766 sq. ft. Denver International Airport; CO Lead Commissioning Engineer for development of $83M Energy Performance Contract. EDUCATION Colorado State University, B.S., Mechanical Engineering ACCREDITATIONS Certified Commissioning Professional (CCP) AWARDS Building Commissioning Association – 20 under 40 Award Program, 2022 Recipient TENURE In the industry since 2014 and with McKinstry since 2014. 157 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 78 Appendix A: Key Personnel Resumes Sarah Parsons, LEED AP BD+C | POST-CONSTRUCTION MANAGER WHY SARAH? Sarah brings nearly two decades of experience providing collaborative design and implementation of technical services and solutions. Sarah is motivated to create long-term relationships with public sector clients that serve their unique needs, while also promoting community benefits. SARAH’S ROLE Sarah is responsible for working with clients on all post-construction services as the primary project manager. This includes all ongoing O&M, M&V and behavioral engagement programs that may continue for 1-3 years (or more) after construction has been completed. PROJECT EXPERIENCE City and County of Denver; CO Post-Construction Manager for Investment Grade Audit and $16.9M Energy Performance Contract. City of Commerce City; CO Account Executive for city-wide Facilities Condition Assessment. Denver International Airport; CO Post-Construction Manager for development of $83M Energy Performance Contract. Salt Lake City School District; UT Post-Construction Manager for $29.3M Comprehensive Zero Over Time roadmap for the District to achieve full Zero Carbon performance in their facilities by 2040, including facility electrification over five phases. Colorado School of Mines; Golden, CO Post-Construction Manager for $8.5M Design-Build chiller plant. Colorado State University; Fort Collins, CO Account Executive commissioning consulting service for the University’s Anatomy- Zoology addition. University of Colorado, Anschutz; Aurora, CO Account Executive for campus-wide Facility Condition Assessment of 32 buildings totaling over 3.2M square feet. EDUCATION University of Maryland, B.S., Electrical Engineering ACCREDITATIONS LEED Accredited Professional (LEED AP) BD+C (Building Design and Construction) TENURE In the industry since 2005 and with McKinstry since 2017. 158 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 79 Appendix A: Key Personnel Resumes Jaymes McMullin, CMVP, CEM, LEED AP | PRINCIPAL ENGINEER ONGOING MONITORING AND COMPLIANCE WHY JAYMES? Jaymes brings a thorough understanding of building systems, integration of mechanical and electrical systems, and optimizing controls strategies for energy conservation. JAYMES’ ROLE Jaymes is focused on identifying and quantifying energy conservation measures and monitoring performance over time through McKinstry’s behavioral engagement program. Jaymes will work with all key stakeholders after construction completion to collaboratively roll out the powerED program. PROJECT EXPERIENCE City and County of Denver; CO Principal Engineer Ongoing Monitoring and Compliance for Investment Grade Audit and $16.9M Energy Performance Contract. City of Durango; CO Principal Engineer Ongoing Monitoring and Compliance for development of $5.5M Energy Performance Contract. Jefferson County; CO Principal Engineer Ongoing Monitoring and Compliance for $5.4M Phase I Energy Performance Contract and $1.7M Phase II Energy Performance Contract. Denver International Airport; CO Principal Engineer Ongoing Monitoring and Compliance for development of $83M Energy Performance Contract. Denver Public Schools; Denver, CO Principal Engineer Ongoing Monitoring and Compliance for $8.5M Energy Performance Contract. Colorado School of Mines; Golden, CO Principal Engineer Ongoing Monitoring and Compliance for development of $4.8M Energy Performance Contract. University of Colorado Boulder, MacAllister Building; CO Principal Engineer Ongoing Monitoring and Compliance for $10.7M Energy Performance Contract. University of Colorado Boulder, Wilderness Place; CO Principal Engineer Ongoing Monitoring and Compliance for $6.3M Energy Performance Contract. EDUCATION Colorado State University B.S., Mechanical Engineering ACCREDITATIONS Certified Measurement and Verification Professional (CMVP) Certified Energy Manager (CEM) LEED Accredited Professional (LEED AP) TENURE In the industry since 2006 and with McKinstry since 2010. 159 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 80 Appendix A: Key Personnel Resumes Leanne Matthews, CMVP, EIT | PROGRAM MANAGER, M&V WHY LEANNE? Leanne brings seven years of leadership experience to McKinstry from her prior work as a U.S. Navy nuclear officer. Her ability to collaborate effectively with a diverse group of people offers a fresh perspective. She is passionate about educating clients on M&V, the energy performance contracting process and how McKinstry verifies energy savings. LEANNE’S ROLE As Measurement & Verification (M&V) Program Manager, Leanne is responsible for providing direction and oversight of post-construction activities including performance assurance and M&V programs, sustainability services, ongoing commissioning, and monitoring to ensure client goals are met. PROJECT EXPERIENCE City and County of Denver; CO M&V Program Manager for Investment Grade Audit and $16.9M Energy Performance Contract. City of Lakewood; CO M&V Program Manager for development of $2.4M Energy Performance Contract. City of Gunnison; CO M&V Program Manager for development of $4M Energy Performance Contract. Northwest Colorado Regional Solar and Resiliency Project; Craig, Steamboat, Yampa, Hayden, and Oak Creek, CO M&V Program Manager for $6M Solar and Resiliency Project across 15 different sites. Denver International Airport; CO M&V Program Manager for development of $83M Energy Performance Contract. Fremont RE-2 School District, CO; Florence, CO M&V Program Manager for $3.2M Investment Grade Audit and Energy Performance Contract. Denver Public Schools; Denver, CO M&V Program Manager for $8.5M Energy Performance Contract. Salt Lake City School District; UT M&V Program Manager for $29.3M Comprehensive Zero Over Time roadmap for the District to achieve full Zero Carbon performance in their facilities by 2040, including facility electrification over five phases. Colorado School of Mines; Golden, CO M&V Program Manager for development of $4.8M Energy Performance Contract. EDUCATION University of Minnesota, Doctorate, Mechanical Engineering University of Minnesota, M.S., Mechanical Engineering Valparaiso University, B.S., Mechanical Engineering ACCREDITATIONS Certified Measurement and Verification Professional (CMVP) Engineer in Training (EIT) TENURE In the industry since 2021 and with McKinstry since 2022. 160 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 81 Appendix A: Key Personnel Resumes Martin Beggs, PVIP | PROJECT DIRECTOR, RENEWABLES WHY MARTIN? Martin has over a decade of work experience in the solar industry, installing, managing, designing and developing solar PV and energy storage projects, primarily ranging from 5kW to 5MW. MARTIN’S ROLE As Renewables Project Director, Martin takes the lead on technical development, design and modeling of solar PV and energy storage solutions. He coordinates and collaborates with project teams, utilities, jurisdictions, technical consultants and product vendors to identify renewable energy applications that are best suited to each project site. PROJECT EXPERIENCE Huerfano County; Walsenburg, CO Renewables Project Director for development of $2.2M Energy Performance Contract. City and County of Denver; CO Renewables Project Director for development of $16.9M Energy Performance Contract and $40M Community Solar project. City of Lakewood; CO Renewables Project Director for development of $2.4M Energy Performance Contract. Town of Basalt; CO Renewables Project Director for development of $1.2M Energy Performance Contract. Northwest Colorado Regional Solar and Resiliency Project; Craig, Steamboat, Yampa, Hayden, and Oak Creek, CO Renewables Project Director for $6M Solar and Resiliency Project across 15 different sites. Foothills Park and Recreation, Phase 2; Littleton, CO Renewables Project Director for Investment Grade Audit and $8M Energy Performance Contract. Denver International Airport; CO Renewables Project Director for development of $83M Energy Performance Contract. Adams 12 Five Star School District; Thornton, CO Renewables Project Director for development of $2M Energy Performance Contract. EDUCATION University of California, Davis, B.S., Environmental Biology and Management Solar Energy International – National Electric Code and PV Systems Heatspring – Comprehensive Solar Plus Storage ACCREDITATIONS NABCEP Certified PV Installation Professional (PVIP) (#091209-10) AFFILIATIONS Illuminating Engineering Society (IES) Member TENURE In the industry since 2008 and with McKinstry since 2019. 161 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 82 Appendix A: Key Personnel Resumes John Doyle, CSLT | PROJECT DIRECTOR LIGHTING SOLUTIONS WHY JOHN? John's 15+ years of industry experience in lighting design, energy analysis, and project management allows him to deliver lighting projects with unrivaled excellence. He has worked on dozens of lighting projects with our proposed team. John’s untiring motivation to stay at the forefront of lighting technologies and deliver with excellence will add value to the City of Pueblo by ensuring project specifications meet the City's goals. JOHN’S ROLE As Lighting Solutions Engineering Director, John will develop ROI-driven lighting solutions, provide lighting design consultation, support measurement and verification efforts to assess pre and post-results, and coordinate utility provided rebates to improve total out of pocket costs. PROJECT EXPERIENCE City of Phoenix Convention Center; AZ Lighting Solutions Project Director for $6M lighting retrofit project. City of Glendale; AZ Lighting Solutions Project Director for Investment Grade Audit. Adams 12 Five Star School District; Thornton, CO Lighting Solutions Project Director for development of $2M Energy Performance Contract. Tucson Unified School District; Tucson, AZ Lighting Solutions Project Director for $2.5M lighting retrofit project. Colorado State University Pueblo LED Retrofit; Pueblo, CO* Regional Manager, Lighting Development and Engineering for $2.3M lighting retrofit project. Modesto City Schools, Phase II LED Retrofit; Modesto, CA* Regional Manager, Lighting Development and Engineering for $8.5M lighting retrofit project. Marysville Joint Unified School District, Phase I LED Retrofit; Marysville, CA* Regional Manager, Lighting Development and Engineering for $1.7M lighting retrofit project. South Conway County School District LED Retrofit; Morrilton, AR* Regional Manager, Lighting Development and Engineering for $1.8M lighting retrofit project. *Denotes project completed with another firm EDUCATION University of Phoenix, M.B.A.., Business Administration Arizona State University, B.A., Business Administration ACCREDITATIONS NALMCO Certified Senior Lighting Technical (CSLT) TENURE In the industry since 2008 and with McKinstry since 2019. 162 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 83 Appendix A: Key Personnel Resumes Brad Liljequist, LFA | DIRECTOR OF ZERO CARBON WHY BRAD? Brad’s 30+ years of creating Earth-positive buildings and communities give Brad a pragmatic, yet creative approach to delivering deeply sustainable and functional buildings as he contributes key insights and improvements to projects. Brad excels at providing zero energy design leadership and process management, nature-based systems and services design, user load reduction, and zero energy specific integrated design.. BRAD’S ROLE Brad is a nationally respected leader in decarbonization, well known for both thought leadership and achieving actual results. A serial climate solutions innovator, he is now dedicated to accelerating decarbonization with public and private sector clients. PROJECT EXPERIENCE Seattle City Light Fast Charging Network; Seattle, WA* Public, utility-owned, fast charging network over 10 sites. Project included market analysis, customer research and program design. Burlington Northern Santa Fe (BNSF) Intermodal Charging Yard City; Seattle, WA* Construction of 12 DC fast chargers. Project supported electric yard tractors needed to move trailers and containers. Amazon Fleet Charging, Multiple Countries* Led transportation electrification initiatives. Focused on scaling charging and infrastructure solutions in company’s transportation businesses including deploying 5,000+ charging stations across five countries. Safelite Auto Glass; Multiple Locations, CA* Retail installation of EV charging at numerous Safelite Auto Glass locations across California, providing turnkey delivery that included all planning, design, construction and charging hardware. This project was unique due to mixed fleet and public use case for charging stations. *Denotes project completed with another firm EDUCATION University of Washington, Evans School of Public Policy and Governance, Master's, Master of Public Administration, Environmental Policy, 1993 Georgetown University, Bachelor's, History, 1988B.S. ACCREDITATIONS/AWARD Western USGBC LEED Accredited Professional (LEED AP) Living Future Accredited TENURE In the industry since 1989 and with McKinstry since 2019. 163 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 84 Appendix A: Key Personnel Resumes Brendan O’Donnell | DIRECTOR, EV CHARGING WHY BRENDAN? Brendan has spent the last decade implementing electrification at leading organizations such as Rivian, Amazon and Seattle City Light. Brendan brings leadership and proven experience deploying EV charging projects at scale with both public and private sector partners. BRENDAN’S ROLE Brendan leads McKinstry’s centralized team focused on EV charging planning, design, installation and operation. He will oversee the comprehensive development of vehicle electrification and infrastructure solutions. PROJECT EXPERIENCE Seattle City Light Fast Charging Network; Seattle, WA* Public, utility-owned, fast charging network over 10 sites. Project included market analysis, customer research and program design. Burlington Northern Santa Fe (BNSF) Intermodal Charging Yard City; Seattle, WA* Construction of 12 DC fast chargers. Project supported electric yard tractors needed to move trailers and containers. Amazon Fleet Charging, Multiple Countries* Led transportation electrification initiatives. Focused on scaling charging and infrastructure solutions in company’s transportation businesses including deploying 5,000+ charging stations across five countries. Safelite Auto Glass; Multiple Locations, CA* Retail installation of EV charging at numerous Safelite Auto Glass locations across California, providing turnkey delivery that included all planning, design, construction and charging hardware. This project was unique due to mixed fleet and public use case for charging stations. *Denotes project completed with another firm EDUCATION University of Washington, M.S., Civil & Environmental Engineering University of Michigan, B.S., Environmental Science ACCREDITATIONS/AWARD Western Energy Institute, Business Acumen for Emerging Leaders Award TENURE In the industry since 2009 and with McKinstry since 2023. 164 THE TOWN OF VAIL | ENERGY PERFORMANCE CONTRACT SERVICES | MCKINSTRY RESPONSE | 85 Appendix A: Key Personnel Resumes Sara Berry-Maraist, PE | PROGRAM MANAGER, FEDERAL FUNDING WHY SARA? Sara is a Professional Engineer who is McKinstry's in-house IRA expert. She provides our teams with guidance and information on tax regulations, contributing insights and collaboration with tax professionals for project success. Sara's team engages early in the process to advise design decisions, identify funding opportunities, and deliver comprehensive support, targeting maximum tax credits and compliance; they anticipate assisting clients in obtaining $19M in ITC credits for FY-2023. SARA’S ROLE As Federal Funding Program Manager, Sara drives the Inflation Reduction Act (IRA) strategy and is responsible for staying abreast across all federal funding guidance, compliance, and any new funding announcements. She provides hands-on support to clients and community organizations, helping them to best understand the variety of federal tax incentives, grants, and other programs they can utilize. PROJECT EXPERIENCE Huerfano County; Walsenburg, CO Federal Funding Program Manager for development of $2.2M Energy Performance Contract with anticipated 25.5% IRA Funding. City and County of Denver; CO Federal Funding Program Manager for development of $16.9M Energy Performance Contract and $40M Community Solar project with anticipated 25.5% IRA Funding. Town of Basalt; CO Federal Funding Program Manager for development of $1.2M Energy Performance Contract with anticipated 30% IRA Funding. Moffat County; Craig, CO Federal Funding Program Manager for development of $490K Energy Performance Contract with anticipated 25.5% IRA Funding. Aurora Public Schools; Aurora, CO Federal Funding Program Manager for development of $7M Energy Performance Contract with anticipated 30-40% ITC funding. Salt Lake City School District; UT Federal Funding Program Manager for $29.3M Comprehensive Zero Over Time roadmap for the District to achieve full Zero Carbon performance in their facilities by 2040, including facility electrification over five phases; anticipated 25.5% ITC funding for Phase 1 with Phase 2 assistance underway. EDUCATION Gonzaga University, B.S. Mechanical Engineering ACCREDITATIONS Professional Engineer (PE) TENURE In the industry since 2018 and with McKinstry since 2018. 165 AGENDA ITEM NO. 5.2 Item Cover Page DATE:August 6, 2024 TIME:25 min. SUBMITTED BY:Gregg Barrie, Public Works ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion (3:30pm) SUBJECT:Gore Creek Promenade Update (3:45pm) SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Gregg Barrie, Senior Landscape Architect VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Gore Creek Promenade Renewal TC Memo 8-6-24 Gore Creek Promenade PP 8-6-24 166 To: Vail Town Council From: Department of Public Works Date: August 6, 2024 Subject: Gore Creek Promenade Renewal Update I. ITEM PURPOSE The Gore Creek Promenade park, located along Gore Creek in Vail Village, has been in need of repairs and improvements for several years. Some features, including the turf area are showing significant wear. The purpose of this agenda item is to discuss a design development process for a Gore Creek Promenade Renewal project. II. BACKGROUND In January of 2023, staff presented information to the Town Council regarding a project to repair, enhance, and update the Gore Creek Promenade. The information presented at that time described the ongoing deficiencies in the park, provided public input received from over 180 Engage Vail responses, and outlined Project Objectives, which were informally adopted by that Town Council. The project was temporarily postposed due to competing priorities; however, the park is still in need of improvements. The 2024 RETT budget includes $408,000 for this project. With that in mind, a Request for Proposals (RFP) was issued in June of 2024 seeking a landscape architectural firm to assist with developing a Comprehensive Site Plan for the park. The town received four proposals, conducted two consultant interviews, and has selected a recommended firm, which will be described in more detail below. Because 18 months has passed since the last Promenade discussion with a previous town council, this presentation will review ongoing park deficiencies, and discuss a plan for addressing those issues, including the development of a Comprehensive Site Plan. III. PARK DESCRIPTION The Gore Creek Promenade is a popular amenity in the heart of Vail Village. Residents and guests alike frequent the busy shops, galleries, and restaurants. Families enjoy the turf area and easy access to Gore Creek. Weekly whitewater events are held each spring, Winterfest ice sculptures during the ski season, the annual GoPro Mountain Games and a busy summer season all contribute to making the Promenade one of the most regularly visited parks in Vail. 167 Town of Vail Page 2 The park is generally comprised of the area located between the International Bridge and Up the Creek restaurant along the south bank of Gore Creek. A heated paver sidewalk provides access to four retail shops, two art galleries, a hotel/lodge and three restaurants. Three additional restaurants and several residential units overlook the park, with access from Gore Creek Drive or from the Children’s Fountain plaza. The primary features of the park area include a roughly 3,000 square foot turf area that serves as the main gathering space, stone steps that provide access to a small “beach” and Gore Creek, a natural gas fire pit that operates during winter, and several large planting areas with mature spruce, fir, aspen and native shrubs. There are benches along the paver walkway and a few overlooking the creek. Approximately half of the streambank through the Promenade is vegetated with native willows/shrubs growing among the boulders. The unvegetated sections of the bank provide informal access to the creek and places for park users to sit and enjoy the space. The town’s whitewater park, well-used during the GoPro Games and the Vail Recreation District Whitewater Series, is situated between the International Bridge and the pedestrian bridge located just upstream. A terraced viewing area on the north bank provides natural seating and access to the creek. IV. CURRENT DEFICIENCIES The last major renovation to this park occurred over thirty years ago. Since then, Vail has seen increases in summer visitation, in the local population, and in year-round special events. As previously stated, some features of the Promenade are showing significant wear that has become more and more difficult to maintain at a high level. The most significant issue with the Promenade currently is the quality of the core turf area located at the east end of the park. Town maintenance crews have difficulty sustaining the grass, and a key component of any work on the Promenade should be to resolve that issue. Other issues include streambank erosion, limited options for seating and gathering, a lack of access for those with limited mobility (ADA), a decline in the health of some trees, and the narrow width of the heated paver walkway during periods of high use. V. POTENTIAL PROJECT SCOPE The most basic level of addressing issues at the park is to rebuild the turf area to improve drainage, soil structure and irrigation. However, one of the elements that contributes to heavy turf wear are the concentrated access points into the park. This heavy traffic leads to soil compaction and decline of the turf. Simply replacing the grass will likely result in the same poor-quality turf condition. A more comprehensive solution is to explore ways to spread out the concentrated use and access points, to consider alternative ground surface materials for some areas, and to improve user experience throughout the space with improved seating, accessibility, public art, landscaping, bike/ski racks, and other site amenities. 168 Town of Vail Page 3 VI. DEVELOPING A PLAN FOR ADDRESSING PARK ISSUES In order to explore these opportunities, staff proposes to hire a landscape architectural firm to assist with the development of a Comprehensive Site Plan. The selected firm will perform the following tasks: • Review previously gathered public input from 2022/23 • Manage an in-person public engagement process that builds on existing public input, perhaps hosted in the vicinity of the Promenade. • Adjust the 2022/23 Project Goals and Objectives as needed based on the new engagement efforts, and present to the Town Council for approval. • Develop three conceptual plans of varying complexity with accompanying cost estimates and present those to the Town Council. • The Council will be asked to select a desired plan or combination of elements which will be further developed to proceed through the design review process. • Develop a Turf Management Plan for the park that will detail reconstruction methods (drainage/soil structure) and provide management requirements for town maintenance crews to ensure the turf is properly maintained on a seasonal basis. The final project scope will be determined by the design process, public engagement, Town Council input, and construction cost/schedule. The design work for this project should aim to address park deficiencies, look at opportunities to improve circulation, provide ADA access, improve interaction with Gore Creek, and address turf issues. VII. STREAM BANK EROSION AND GORE CREEK INTERFACE An important part of repairing and improving the Promenade includes taking a close look at the existing boulder bank, creek access, and ways to improve river health. To do so, staff recommends hiring the firm River Restoration as an additional, complementary consultant. This company has performed numerous design and analysis projects for the town over the past 17 years including much of the design work for Restore the Gore as well as multiple Gore Creek access projects. The cost for this is estimated in the $10,000 to $15,000 range and they would work on an “as-needed” basis. VIII. PHASED CONSTRUCTION A Comprehensive Site Plan looks at the park in its entirety. It addresses current needs and looks for opportunities to improve this important public place. However, the construction process does not necessarily need to occur all at once. Depending on the concept plan ultimately selected by the Town Council, the project can be phased to reduce impacts to guests, businesses, and special events. This phased approach also allows the budget impacts to be spread out over multiple seasons, if desired. IX. BUDGET INFORMATION The existing 2024 budget for this project is $408,000. Staff proposes to use a portion of this budget to fund the design process to develop a Comprehensive Site Plan. The 2024 Five-Year RETT Budget currently includes an additional $750,000 in 2025 for this project. This will be further discussed during the upcoming 2025 budget process, and pending completion of the Comprehensive Site Plan and phasing plan. 169 Town of Vail Page 4 X. RECOMMENDED LANDSCAPE ARCHITECTURE CONSULTANT As previously stated, staff received four proposals in response to the RFP. Two were selected as finalists: • EDSA, Inc. $ 46,600 • Kimley-Horn $ 74,691 Both firms were interviewed and while both are highly qualified, town staff recommends hiring EDSA for the Promenade design process for a fee of $46,600. XI. PROJECT SCHEDULE Staff proposes the following project design schedule: • Hire LA Consultant August 6, 2024 • Public Engagement process August/September • Council update October • Council selects a design October/November • Design Review process November • Comprehensive Plan completion December/January After completing the Comprehensive Plan, the next phases of the project include determining and approving appropriate budgets, completion of construction documents and drawings, the bid process, and construction. The schedule and cost for these items will be determined at a later date. XII. STAFF RECOMMENDATION Staff recommends that the Council provide feedback and suggestions on the information provided in this memo and the presentation for the Gore Creek Promenade Renewal process. Staff recommends hiring the landscape architectural firm and the stream health expert to assist with the development of a Comprehensive Site Plan and Turf Management Plan to start moving the project forward. XIII. ACTION REQUESTED BY COUNCIL Staff requests that the Council provide feedback on the recommendations provided in this memo and direct staff to proceed with the project. Attachments: 1. Aerial Vicinity Map of Gore Creek Promenade 2. Photos of the existing Promenade 170 Town of Vail Page 5 171 Town of Vail Page 6 Above: Gore Creek viewed from the pedestrian bridge Below: Degraded turf area at the east end of the park 172 Town of Vail Page 7 Above: A busy Monday in July Below: Inner Tube take out point 173 Town of Vail Page 8 Above: Flagstone walkway towards the creek Below: Flagstone along the creek bank 174 Town of Vail Page 9 Above: Busy paver walkway Below: Seeking seating and shade 175 Town of Vail Page 10 Above: Bikes on the paver walkway of Gore Creek Promenade Below: Degraded flagstone walks installed in high traffic areas 176 Town of Vail Page 11 Above: Vail Whitewater Park - GoPro Below: GoPro Games staging area 177 Town of Vail Page 12 Above: Vail Winterfest 2023 Below: Vail Winterfest 2024 178 August 6, 2024 Gore Creek Promenade Renewal Project 179 The Gore Creek Promenade Renewal 2August 6, 2024 PROJECT DISCUSSION •Project Background •Outline Current Park Deficiencies •Discuss Recommended Design Approach •Town Council Feedback 180 The Gore Creek Promenade Renewal 3August 6, 2024 181 The Gore Creek Promenade Renewal 4August 6, 2024 Features of the Promenade •Shops, restaurants, galleries and a hotel/lodge •Open turf area •Access to Gore Creek – both physical and visual •Heated paver walkway 182 The Gore Creek Promenade Renewal 5August 6, 2024 Features of the Promenade •Fire pit w/ seating •Mature vegetation •Benches/seating •Flagstone walkways 183 The Gore Creek Promenade Renewal 6August 6, 2024 Current Park Deficiencies •Turfgrass health/maintenance •Concentrated access and use areas •Limited seating options •Uneven flagstone walks •Streambank erosion •Lack of access for those with limited mobility or a disability •Narrow width of the heated paver walkway during periods of high use 184 The Gore Creek Promenade Renewal 7August 6, 2024 Project Background •Last major renovation in 1993 •Turf deterioration for many years •Rebuilt 1993, 1999, 2005 •Full resod 2014, 2021 •Multiple partial resods •2022/23 Public Engagement Survey •180 responses •Council presentation – Feb 2023 •Project Objectives •Project postponed •Currently $408,000 budgeted in RETT 1993 Improvements 185 The Gore Creek Promenade Renewal 8August 6, 2024 Opportunities for Improvements •Turf – improve drainage, soil structure, irrigation and maintenance practices •Spread out concentrated use and access points •Alternative ground surface materials •Interaction with Gore Creek •Improve user experience •Seating, accessibility, public art, landscaping, bike/ski racks Rendering – 1993 Improvements 186 The Gore Creek Promenade Renewal 9August 6, 2024 Approach for The Promenade Renewal Comprehensive Site Plan •Evaluate needs and opportunities •Improve overall site function •Strong public engagement process •Phased implementation, if needed Turf Management Plan •Physical improvements (drainage, soil structure, irrigation) •Maintenance routines and equipment •Management to allow for recovery 187 The Gore Creek Promenade Renewal 10August 6, 2024 Approach for The Promenade Renewal Hire a landscape architecture consultant for Comprehensive Site Plan and Turf Management Plan Strong public engagement process Develop three alternative designs and cost estimates Present to Town Council Council chooses an alternative or mix of elements to proceed through the design review process Develop a phasing plan as needed 188 The Gore Creek Promenade Renewal 11August 6, 2024 Landscape Architectural Consultant •Staff published an RFP in June •Received four Proposals •Interviewed two firms •EDSA, Inc $ 46,600 •Kimley-Horn $ 74,691 •Recommendation to hire EDSA, Inc. Water Quality/Streambank Consultant •Recommendation to hire River Restoration •Over 15 years working w/ Gore Creek •“As needed” basis •$ 10,000-15,000 •Assist with conceptual-level planning, streambank assessment, floodplain 189 The Gore Creek Promenade Renewal 12August 6, 2024 Comprehensive Site Plan Schedule •Hire LA Consultant August 2024 •Public Engagement process Aug/Sept •Council update October •Council selects a design Oct/Nov •Design Review process November •Comprehensive Plan completion December/January Next Steps •Phasing Plan •Budget needs •Construction Drawings and Documents 190 AGENDA ITEM NO. 6.1 Item Cover Page DATE:August 6, 2024 SUBMITTED BY:Greg Roy, Community Development ITEM TYPE:DRB/PEC Update AGENDA SECTION:DRB/PEC (4:10pm) SUBJECT:DRB/PEC Update (5 min.) SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: DRB Results 7-17-24 PEC Results 7-22-24 191 Design Review Board Minutes Wednesday, July 17, 2024 2:00 PM Vail Town Council Chambers Present: Roland J Kjesbo Kit Austin Mary Egan Rys Olsen Herbert Roth 1. Virtual Meeting Link Register to attend Design Review Board Meetings. Once registered, you will receive a confirmation email containing information about joining this webinar. 2. Call to Order 3. Main Agenda 3.1 DRB24-0225 - Brombert Residence Final review of an exterior alteration (windows/doors/AC/water heater/furnace) Address/ Legal Description: 5030 Prima Court West/Parcel 4, Sundial Phase 1 Planner: Jamie Leaman-Miller Applicant Name: Marc Brombert DRB24-0225 Photos.pdf DRB24-0225 Documents.pdf DRB24-0225 Plans.pdf Herbert Roth made a motion to Approve with Conditions that prior to building permit approval the plans shall show the picture window aligns with the double casement below on the south elevation; Roland J Kjesbo seconded the motion Passed (5 - 0). 3.2 DRB22 -0212.002 - Baker/Rocky Mtn Juniper/Russell Final review of a change to approved plans (windows) Address/ Legal Description: 1101 Vail View Drive A,B, and C/Lot 11, Casolar Vail II Planner: Jonathan Spence Applicant Name: Michael Baker, Brendan McCarthy & William Russell, represented by Pierce Austin Architects DRB22-0212 Plan Set.pdf Rys Olsen made a motion to Approve with the findings the application meets 14-10-6; Roland J Kjesbo seconded the motion Passed (4 - 0) Austin Recused. 3.3 DRB24-0180 - Dobrin Residence Final review of an exterior alteration (decks/shed) Address/ Legal Description: 1359 Greenhill Court West/Lot 18, Glen Lyon Subdivision Planner: Greg Roy Design Review Board Meeting Minutes of July 17, 2024 1 192 Applicant Name: Amy & Jonathan Dobrin, represented by LKSM Design DRB24-0180 Docs.pdf DRB24-0180 Plans.pdf Rys Olsen made a motion to Approve with Conditions that the new stone on the retaining wall is replaced with wood siding to match the siding on the house; Roland J Kjesbo seconded the motion Passed (5 - 0). 3.4 DRB24-0241 - Stevinson Residence Final review of an exterior alteration (deck/windows) Address/ Legal Description: 4253 Spruce Way B/Lot 15, Block 9, Bighorn Subdivision 3rd Addition Planner: Greg Roy Applicant Name: Bryan Stevinson, represented by S3 Architectural Group DRB24-0241 Plans.pdf Rys Olsen made a motion to Table to a date uncertain; Herbert Roth seconded the motion Passed (5 - 0). 4. Staff Approvals 4.1 DRB23-0063.001 - Cahalin Residence Final review of a change to approved plans (deck) Address/ Legal Description: 1816 Sunburst Drive/Lot 1, Vail Valley Filing 3 Planner: Heather Knight Applicant Name: John & Helen Jo Cahalin, represented by TAB Associates 4.2 DRB23-0426.001 - 782 Potato Patch LLC Final review of a change to approved plans (landscape/interior) Address/ Legal Description: 782 Potato Patch Drive/Lot 16, Block 1, Vail Potato Patch Filing 1 Planner: Heather Knight Applicant Name: 782 Potato Patch, represented by KH Webb 4.3 DRB24-0050.001 - Avanti Final review of a change to approved plans (fire table) Address/ Legal Description: 458 Vail Valley Drive C5/Golden Peak Ski Base and Recreation District Parcel Planner: Jonathan Spence Applicant Name: Avanti, represented by OZ Architecture 4.4 DRB24-0164 - 9 Vail Road 24 LLC Final review of a sign application Address/ Legal Description: 9 Vail Road 2E/Lot B, Vail Village Filing 2 Planner: Heather Knight Applicant Name: 9 Vail Road 24 LLC, represented by Zehren and Associates 4.5 DRB24-0172 - MCB Vail LLC Final review of an exterior alteration (air conditioner) Address/ Legal Description: 684 West Lionshead Circle 205/Lot 8, Block 1, Vail Lionshead FiIiing 3 Planner: Heather Knight Applicant Name: MCB Vail LLC, represented by R and H Mechanical Design Review Board Meeting Minutes of July 17, 2024 2 193 4.6 DRB24-0186 - Collier Residence Final review of an exterior alteration (sliding door) Address/ Legal Description: 1557 Golf Terrace M45/Lot 1, Sunburst Filing 3 Planner: Jamie Leaman-Miller Applicant Name: Richard & Sandra Collier 4.7 DRB24-0202 - 1764 Val LLC Final review of an exterior alteration (deck) Address/ Legal Description: 1764 Alpine Drive 3/Lot 6, Vail Village West Filing 1 Planner: Greg Roy Applicant Name: 1764 Vail LLC, represented by 2139 Vail LLC 4.8 DRB24-0209 - Vail International Final review of an addition (mechanical room) Address/ Legal Description: 300 East Lionshead Circle/Lot 4, Block 1, Vail Lionshead Filing 2 Planner: Heather Knight Applicant Name: Vail International, represented by Backcountry Builders and Construction 4.9 DRB24-0223 - Poch Residence Final review of an exterior alteration (re-roof) Address/ Legal Description: 390 Beaver Dam Circle East/Lot 4, Block 3, Vail Village Filing 3 Planner: Heather Knight Applicant Name: David & Michael Poch, represented by Turner Morris Roofing 4.10 DRB24-0227 - Thomas Residence Final review of an exterior alteration (deck/greenhouse/pergola) Address/ Legal Description: 4027 Lupine Drive/Lot 6, Bighorn Subdivision Planner: Jonathan Spence Applicant Name: Trudy Thomas 4.11 DRB24-0232 - Kiss Residence Final review of an exterior alteration (door) Address/ Legal Description: 2615 Davos Trail/Lot 21, Block B, Vail Ridge Subdivision Planner: Heather Knight Applicant Name: Adam & Diana Kiss, represented by Renewal by Andersen 4.12 DRB24-0239 BCKL LLC Final review of a tree removal Address/ Legal Description: 1259 Westhaven Circle North/Lot 34, Glen Lyon Subdivision Planner: Jamie Leaman-Miller Applicant Name: BCKL LLC, represented by Old Growth Tree Service 4.13 DRB24-0243 - Saalfeld Residence Final review of an exterior alteration (driveway) Address/ Legal Description: 2478 Garmisch Drive/Lot 27, Block A, Vail Das Schone Filing 1 Planner: Jonathan Spence Design Review Board Meeting Minutes of July 17, 2024 3 194 Applicant Name: Thomas & Kimberly Saalfeld 4.14 DRB24-0252 - Kind Bikes and Skis Final review of a sign application Address/ Legal Description: 2271 N Frontage Road West/Lot 1, Vail Das Schone Filing 1 Planner: Jamie Leaman-Miller Applicant Name: Kind Bikes and Skis, represented by Eclipse Sign Co 4.15 DRB24-0253 - Delponte Residence Final review of an exterior alteration (addition/roof) Address/ Legal Description: 3070 Booth Creek Drive/Lot 7, Block 3, Vail Village Filing 11 Planner: Jonathan Spence Applicant Name: Reggie Delponte, represented by SRI Architects 5. Staff Denials 6. Adjournment Roland J Kjesbo made a motion to Adjourn ; Herbert Roth seconded the motion Passed (5 - 0). Design Review Board Meeting Minutes of July 17, 2024 4 195 Present: Absent: David N Tucker William Jensen Robert Lipnick John Rediker Brad Hagedorn Robyn Smith Scott McBride 1. Virtual Link Register to attend the Planning and Environmental Commission meeting. Once registered, you will receive a confirmation email containing information about joining this webinar. 2. Call to Order 3. Site Visits (75 minutes) 3.1 Cornerstone Site Visit 1276 Westhaven Dr, Vail, CO 81657 Site visit to take place at Dormitory Employee Housing Unit - 1310 Westhaven Dr, Vail, CO 81657 4. Main Agenda 4.1 A request for a recommendation to the Vail Town Council for a major amendment to Special Development District No. 4 (Cascade Village), pursuant to Section 12-9(A), Special Development Districts, Vail Town Code, to allow for the redevelopment of the covered parking, the construction of five new free-market condominiums, one new employee housing unit, and associated site improvements at Coldstream Condos, located at 1476 Westhaven Drive, Lot 53, Glen Lyon Subdivision and setting forth details in regard thereto. (PEC24-0017) The applicant requests that this item be tabled to the August 26, 2024 PEC meeting. Planner: Heather Knight Applicant Name: Coldstream Ltd., represented by High Summit 4.2 A request for review of an environmental impact report pursuant to Chapter 12-10, Planning and Environmental Commission Minutes Monday, July 22, 2024 1:00 PM Vail Town Council Chambers Robyn Smith made a motion to Table to the August 26, 2024 meeting; Robert N Lipnick seconded the motion Passed (6 - 0). 1 Planning and Environmental Commission Meeting Minutes of July 22, 2024 196 Environmental Impact Report, Vail Town Code to allow for a development of the West Middle Creek Village Apartments, located at 351 North Frontage Road West/Lot 4, Middle Creek Subdivision a Resubdivision of Tract A (PEC24-0025) The applicant has requested that this item be tabled to the August 12th, 2024 PEC meeting. Planner: Greg Roy Applicant Name: Town of Vail and Corum Real Estate Group 4.3 A request for review of a mobility plan pursuant to Section 12-6N-13, Mobility, Vail Town Code, to provide less than the prescribed number of parking spaces, located at 351 North Frontage Road West/Lot 4, Middle Creek Subdivision a Resubdivision of Tract A (PEC24- 0026) The applicant has requested that this item be tabled to the August 12th, 2024 PEC meeting. Planner: Greg Roy Applicant Name: Town of Vail and Corum Real Estate Group 4.4 A request for review of a variance from Section 12-6N-5 Setbacks, Vail Town Code, pursuant to Title 12 Chapter 17, Variances, Vail Town Code, to allow for a building located within the required twenty-foot (20’) front setback, located at 351 North Frontage Road West/Lot 4, Middle Creek Subdivision a Resubdivision of Tract A (PEC24-0027) The applicant has requested that this item be tabled to the August 12th, 2024 PEC meeting. Planner: Greg Roy Applicant Name: Town of Vail and Corum Real Estate Group 4.5 A request for review of a variance from Section 12-21-17 Gore Creek Setbacks, Vail Town Code, pursuant to Title 12 Chapter 17, Variances, Vail Town Code, to allow for a structure (access road and retaining walls) within the required twenty-five (25) foot setback, located at 351 North Frontage Road West/Lot 4, Middle Creek Subdivision a Resubdivision of Tract Robert N Lipnick made a motion to Table to the August 12, 2024 meeting; Robyn Smith seconded the motion Passed (6 - 0). Robyn Smith made a motion to Table to the August 12, 2024 meeting; Robert N Lipnick seconded the motion Passed (6 - 0). Robyn Smith made a motion to Table to the August 12, 2024 meeting; Robert N Lipnick seconded the motion Passed (6 - 0). 2 Planning and Environmental Commission Meeting Minutes of July 22, 2024 197 A (PEC24-0028) The applicant has requested that this item be tabled to the August 12th, 2024 PEC meeting. Planner: Greg Roy Applicant Name: Town of Vail and Corum Real Estate Group 5.Approval of Minutes 5.1 PEC Results 7-8-24 6.Information Update 7.Adjournment Robyn Smith made a motion to Table to the August 12, 2024 meeting; Robert N Lipnick seconded the motion Passed (6 - 0). PEC Results 7-8-24.pdf Robyn Smith made a motion to Approve ; Robert N Lipnick seconded the motion Passed (6 - 0). Robyn Smith made a motion to Adjourn ; Robert N Lipnick seconded the motion Passed (6 - 0). 3 Planning and Environmental Commission Meeting Minutes of July 22, 2024 198 AGENDA ITEM NO. 7.1 Item Cover Page DATE:August 6, 2024 SUBMITTED BY:Jake Shipe ITEM TYPE:Information Update AGENDA SECTION:Information Update (4:15pm) SUBJECT:July 2024 Revenue Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 08-06-2024 Revenue Update 199 1 TOWN OF VAIL REVENUE UPDATE August 6, 2024 4.0% General Sales Tax Upon receipt of all sales tax returns, June 2024 collections are estimated to be $2,325,594, up 2.3% from 2023 and up 2.7% from the budget. 2024 YTD collections of $23,526,473 are down (0.6)% from 2023 and up 0.7% from the budget. Inflation as measured by the consumer price index was up 3.0% for the 12-months ending June 2024. The annual budget totals $40.85 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, June 2024 collections of the 0.5% housing sales tax are estimated to be $280,598 up 2.0% from 2023 and up 2.3% from the budget. 2024 YTD collections of $2,577,182 are down (0.9)% from 2023 and up 0.8% from the budget. The 2024 budget for the housing fund sales tax totals $4.95 million. Real Estate Transfer Tax (RETT) RETT collections through July 30 total $4,773,554, up 44.3% from 2023. The variance compared to prior year is due in-part to an increase in the number of residential property sales which is tracking up 23%. Additionally, there have been several high dollar residential property sales. The 2024 RETT budget totals $7,000,000. Construction Use Tax Use Tax collections through July 30 total $1,778,969 compared to $1,773,592 in 2023. The 2024 budget totals $2,040,000. Lift Tax Year to date lift tax collections through June 30 total $5,003,900, up 6.1% or $287,639 from 2023. The 2024 budget totals $6,675,000. The 2023/2024 season Epic Pass and Epic Pass Local both were priced with an 8% increase compared to the prior season. Summary Across all funds, year-to-date total revenue of $60.2 million is up 9.7% from the amended budget and up 6.8% from prior year. The majority of the positive variance compared to the amended budget is due to higher-than-expected real estate transfer tax collections and interest earnings. The majority of the positive variance compared to the prior year is due to higher- than-expected real estate transfer tax collections, property tax collections, and ski lift tax collections. 200 2024 Budget % change % change 2019 2020 2021 Budget Variance from 2023 from Budget January 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,787,370$ 5,791,011$ 3,641$ -2.04%0.06% February 4,137,087 4,285,633 3,691,850 5,686,585 6,041,108 5,914,315 6,065,694 151,379 0.41%2.56% March 4,237,933 2,243,518 4,364,797 5,912,059 6,055,992 6,035,677 6,365,024 329,347 5.10%5.46% April 1,445,071 427,518 1,751,528 2,234,296 2,264,892 2,258,798 1,820,747 (438,051) -19.61%-19.39% May 763,756 503,828 1,061,516 1,227,974 1,118,011 1,111,919 1,158,403 46,484 3.61%4.18% June 1,606,748 1,023,517 2,149,312 2,317,931 2,272,457 2,265,104 2,325,594 60,490 2.34%2.67% Total 16,270,588$ 12,560,159$ 16,441,212$ 22,595,970$ 23,664,032$ 23,373,183$ 23,526,473$ 153,290$ -0.58%0.66% July 2,480,292 2,084,644 3,491,668 3,507,973 3,412,277 3,399,024 - August 2,237,050 2,138,838 2,877,550 2,997,389 2,932,111 2,920,600 - September 1,600,100 1,767,393 2,359,528 2,441,331 2,508,064 2,495,143 - October 1,165,176 1,371,727 1,734,964 1,729,558 1,773,358 1,652,467 - November 1,260,314 1,425,461 1,880,397 1,902,643 1,901,141 1,779,167 - December 4,237,178 3,625,189 5,749,365 5,602,018 5,691,428 5,230,416 - Total 29,250,698$ 24,973,411$ 34,534,683$ 40,776,882$ 41,882,411$ 40,850,000$ 23,526,473$ 153,290$ -0.58%0.66% 2022 2023 2024 Budget % change % change Collections Collections Budget Variance from 2023 from Budget January 645,487$ 720,906$ 700,920$ 703,394$ 2,474$ -2.43%0.35% February 702,730 736,788 716,760 739,823 23,063 0.41%3.22% March 719,717 738,244 731,610 777,185 45,575 5.27%6.23% April 269,018 271,930 273,735 219,264 (54,471) -19.37%-19.90% May 146,657 132,333 134,640 137,515 2,875 3.92%2.14% June 280,460 275,113 274,230 280,598 6,368 1.99%2.32% Total 2,483,609$ 2,600,201$ 2,557,665$ 2,577,182$ 19,517$ -0.89%0.76% July 424,602 412,849 411,840 - August 361,165 352,887 353,925 - September 294,861 304,068 302,445 - October 207,397 213,568 200,475 - November 230,383 229,092 215,820 - December 671,982 687,985 633,600 - Total 4,954,459$ 5,075,763$ 4,950,000$ 2,577,182$ 19,517$ -0.89%0.76% Town of Vail Revenue Update August 6, 2024 4.0% GENERAL SALES TAX2024 Budget Comparison 0.5% Collected Sales Tax 0.5% HOUSING SALES TAX 2024 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax20222023 201 Town of Vail Revenue Update YTD 4% General Sales Tax Collections By Year August 6, 2024 Through June 30 June 4% General Sales Tax Collections By Year Through June 30 •June collections of $2,325,594 are up 2.3% from prior year and are up 2.7% from the budget. $1,023,517 $2,149,312 $2,317,931 $2,272,457 $2,325,594 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2020 2021 2022 2023 2024 $12,560,159 $16,441,212 $22,595,970 $23,664,032 $23,526,473 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2020 2021 2022 2023 2024 •YTD collections of $23,526,473 are down (0.6)% from prior year and are up 0.7% from the budget. •Inflation as measured by the consumer price index was up 3.0% in June. 202 Town of Vail Revenue Update August 6, 2024 June 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through July 2024 June Collections YTD Collections •This chart shows YTD collections of 1% RETT, segmented by real property values. 2024 collections are up 44.3% from the prior year. $3,170,265 $6,373,698 $5,442,865 $3,307,320 $4,773,554 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2020 2021 2022 2023 2024 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million •June collections of $280,598 are up 2.0% from prior year and are up 2.3% from the budget. YTD collections of $2,577,182 are down (0.9)% from this time last year and are up 0.8% from the budget. $280,460 $275,113 $280,598 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2022 2023 2024 $2,483,609 $2,600,201 $2,577,182 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2022 2023 2024 203 Town of Vail Revenue Update August 6, 2024 Construction Use Tax by Year YTD Through July 2024 YTD Lift Tax Collections YTD Through June 2024 •Use Tax collections through July 30 total $1,778,969, compared to $1,773,592 from this time last year. This is an increase of 0.3%. $839,478 $2,659,062 $1,227,733 $1,773,592 $1,778,969 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 •2024 YTD lift tax collections of $5,003,900 are up 6.1% or $287,639 from the same time last year. $2,918,791 $3,981,861 $4,798,965 $4,716,261 $5,003,900 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2020 2021 2022 2023 2024 204 Vail Business Review June 2024 and 2024 2nd Quarter August 6, 2024 The Vail Business Review breaks down the 4.5% sales tax collected for the month of June 2024. The 4.5% sales tax includes the town’s general 4% sales tax and the 0.5% housing sales tax supported by Town of Vail voters during the November 2021 election, effective January 1, 2022. The housing sales tax sunsets on December 31, 2051. Overall, June 4.5% sales tax was up from the prior year 2.3%. Retail decreased (9.3%), lodging decreased (1.0)%, food and beverage increased 13.3%, and utilities/other decreased (9.3)%. Excluding the out-of-town category, sales tax for the month of June was up 3.5% compared to prior year. The second quarter of 2024 resulted in an overall (6.0)% decrease from the prior year. Retail decreased (9.1)%, lodging decreased (9.4)%, food and beverage increased 2.6%, and utilities/other decreased (3.1)%. Excluding the out-of-town category, sales tax collections for second quarter of 2024 decreased (5.4)%. In 2024, the Easter holiday weekend fell on March 30th through 31st. Historically, years in which the holiday falls during March see increased collections during the month of March, and decreased collections during the month of April. Town of Vail sales tax forms, the Vail Business Review, and sales tax worksheets are available on the internet at www.vail.gov. You can subscribe to have the Vail Business Review and the sales tax worksheet emailed to you automatically from www.vail.gov. Please remember when reading the Vail Business Review that it is produced from sales tax collections as opposed to actual gross sales. If you have any questions or comments, please feel free to call me at (970) 479-2113 or Carlie Smith, Finance Director, at (970) 479-2119. Sincerely, Jake Shipe Budget Analyst 205 June 2023 Sales Tax Collections by Business Type June 2024 Town of Vail Business Review June Sales Tax Collections by Year June 2024 Sales Tax Retail 967,109 Lodging 752,950 Food & Beverage 726,505 Utilities & Other 159,489 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 U$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000 1,021,229 2,150,733 2,599,169 2,547,565 2,606,053 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 General Sales Tax Housing Sales Tax •June 2024 retail sales decreased (0.3)%, lodging decreased (1.0)%, food and beverage increased 13.3%, and utilities and other decreased (9.3%). •The figures above reflect 4.5% sales tax. Retail 970,359 Lodging 760,610 Food & Beverage 640,804 Utilities & Other 175,792$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 (0.3)% •This report represents collections of Town of Vail sales tax, as opposed to actual gross sales. •On January 1st, 2022, Town of Vail sales tax increased from 4.0% to 4.5% on all items except food for home consumption. 2022, 2023, and 2024 above include the 0.5% increase to sales tax, depicted in light blue. Prior years show 4.0% sales tax collections. •Total June 2023 collections were $2,547,565; June 2024 collections were $2,606,053 up 2.3% from the prior year. (1.0)%13.3%(9.3)% 206 June 2024 Sales Tax Town of Vail Business Review June 2023June 2024 Geographic Area Trends by Year June Sales Tax Sales Tax by Location Other Areas 16% Lionshead 12% Out of Town 30% Vail Village 42% •Vail Village sales tax decreased (3.7)%, Lionshead increased 25.8%, Other Areas increased 6.3%, and Out of Town decreased (0.6%). Excluding Out of Town collections, all areas were up 3.5%. •The figures above reflect 4.5% sales tax. 194,492 336,430 149,733 250,115 262,950 665,641 414,053 898,548 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2020 2021 2022 2023 2024 Vail Village Out of Town Lionshead Other Areas 1,104,107771,944325,717 325,717 •This chart shows June sales tax collections by geographic area over time. •2022, 2023, and 2024 include the 0.5% increase for housing sales tax, depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. 376,505299,358 755,542 1,076,273 1,035,989 376,505 751,115 442,444 Other Areas 17% Lionshead 14% Out of Town 29% Vail Village 40% 207 Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail June 2024 Sales Tax Town of Vail Business Review Apparel $194,898 Grocery $172,890 Gallery $6,671 Gifts $4,428 Jewelry $30,566Retail Liquor $43,381 Retail Other $339,911 Sporting Goods $78,994 Online Retailers $95,173 Retail Home Occupation $197 •June 2024 accommodations services decreased (1.0)% from the prior year. Short-term rentals decreased (8.6)% and hotels and lodges increased 2.2%. •The figures above reflect 4.5% sales tax. •Short-term rental sales tax collection numbers include online marketplace facilitators like Airbnb and VRBO. Revenue collections from facilitators may include some hotels and lodges. 582,046 208,516 535,308 225,301 547,061 205,889 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Hotel and Lodges Short-Term Rentals 2024 2023 2022 208 Cascade Village / East Vail / Sandstone / West Vail Retail 185,137 173,310 6.82% Lodging 125,061 127,689 -2.06% F & B 129,090 105,620 22.22% Other 3,156 9,773 -67.71% Total 442,444 416,391 6.26% Lionshead Retail 55,868 54,633 2.26% Lodging 162,174 126,034 28.68% F & B 154,206 112,467 37.11% Other 4,256 6,224 -31.62% Total 376,505 299,358 25.77% Out of Town Retail 385,349 388,140 -0.72% Lodging 221,304 215,146 2.86% F & B 615 1,376 -55.33% Other 143,848 150,879 -4.66% Total 751,115 755,542 -0.59% Vail Village Retail 340,755 354,277 -3.82% Lodging 244,411 291,741 -16.22% F & B 442,594 421,340 5.04% Other 8,229 8,915 -7.69% Total 1,035,989 1,076,273 -3.74% Total - All Areas Retail 967,109 970,359 -0.33% Lodging 752,950 760,610 -1.01% F & B 726,505 640,804 13.37% Other 159,489 175,792 -9.27% Total 2,606,053 2,547,565 2.30% Retail Summary Retail Apparel 194,898 196,987 -1.06% Retail Food 172,890 156,402 10.54% Retail Gallery 6,671 9,534 -30.03% Retail Gift 4,428 4,962 -10.75% Retail Home Occupation 197 43 362.14% Retail Jewelry 30,566 38,358 -20.31% Retail Liquor 43,381 44,777 -3.12% Retail Other 339,911 360,894 -5.81% Retail Sport 78,994 80,551 -1.93% Retail Online Retailer 95,173 77,852 22.25% Total 967,109 970,359 -0.33% Town of Vail Business Review June 4.5% Sales Tax 2024 Collections 2023 Collections YoY % Change 209 Town of Vail Business Review Q2 Sales Tax Collections by Year Q2 2024 Sales Tax Q2 2023 Sales Tax Collections by Business Type Q2 2024 2,381,814 Lodging 1,544,652 Food & Beverage 1,460,372 Utilities & Other 568,613 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 (9.1)%2.6%(3.1%) Retail 1,955,976 5,000,620 6,472,100 6,335,048 5,955,450 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2020 2021 2022 2023 2024 General Sales Tax Housing Sales Tax •Q2 2024 retail sales decreasd (9.1)%, lodging decreased (9.4)%, food and beverage increased 2.6%, and utilities and other decreased (3.1%). •The figures above reflect 4.5% sales tax. Retail 2,619,504 Lodging 1,704,518 Food & Beverage 1,424,034 Utilities & Other 586,991 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 (9.4)% •This report represents collections of Town of Vail sales tax, as opposed to actual gross sales. •On January 1st, 2022, Town of Vail sales tax increased from 4.0% to 4.5% on all items except food for home consumption. 2022, 2023, and 2024 above include the 0.5% increase to sales tax, depicted in light blue. Prior years show 4.0% sales tax collections. •Total Q2 2023 collections were $6,335,048; Q2 2024 collections were $5,955,450, down from the prior year (6.0)%. 210 Town of Vail Business Review Q2 2023Q2 2024 Geographic Area Trends by Year Q2 Sales Tax Sales Tax by Location Q2 2024 Sales Tax Other Areas 14% Lionshead 19% Out of Town 22% Vail Village 45% •Vail Village sales tax decreased (13.3)%, Lionshead increased 8.6%, Other Areas increased 4.4%, and Out of Town decreased (7.2%). Excluding Out of Town collections, all areas were down (5.4)%. •The figures above reflect 4.5% sales tax. 469,456 784,188 177,356 550,443 775,927 1,745,053 533,236 1,920,936 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 Vail Village Out of Town Lionshead Other Areas 2,553,238 2,171,580814,887932,416 •This chart shows Q2 sales tax collections by geographic area over time. •2022, 2023, and 2024 include the 0.5% increase for housing sales tax, depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. 933,091756,406 2,185,932 2,459,620 2,130,972 821,724 2,028,587 974,167 Other Areas 15% Lionshead 19% Out of Town 20% Vail Village 46% 211 Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail Q2 2024 Sales Tax Town of Vail Business Review Apparel $405,035 Grocery $404,730 Gallery $13,365 Gifts $8,525 Jewelry $74,487 Retail Liquor $101,770 Retail Other $873,413 Sporting Goods $257,841 Online Retailers $245,761 Retail Home Occupation $591 •Q2 2024 accommodations services decreased 9.4% from the prior year. Short-term rentals decreased (20.1)% and hotels and lodges decreased (4.1)%. •The figures above reflect 4.5% sales tax. •Short-term rental sales tax collection numbers include online marketplace facilitators like Airbnb and VRBO. Revenue collections from facilitators may include some hotels and lodges. 1,297,894 496,756 1,143,834 560,685 1,096,464 448,188 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Hotel and Lodges Short-Term Rentals 2024 2023 2022 212 Retail 449,552 460,680 -2.42% Lodging 257,172 248,922 3.31% F & B 258,707 203,720 26.99% Other 8,736 19,768 -55.81% Total 974,167 933,091 4.40% Retail 138,785 174,823 -20.61% Lodging 343,761 300,501 14.40% F & B 325,269 264,913 22.78% Other 13,909 16,169 -13.97% Total 821,724 756,406 8.64% Retail 1,012,057 1,113,359 -9.10% Lodging 488,699 537,299 -9.05% F & B 1,400 3,361 -58.36% Other 526,432 531,913 -1.03% Total 2,028,587 2,185,932 -7.20% Retail 781,420 870,642 -10.25% Lodging 455,020 617,796 -26.35% F & B 874,996 952,041 -8.09% Other 19,536 19,142 2.06% Total 2,130,972 2,459,620 -13.36% Retail 2,381,814 2,619,504 -9.07% Lodging 1,544,652 1,704,518 -9.38% F & B 1,460,372 1,424,034 2.55% Other 568,613 586,991 -3.13% Total 5,955,450 6,335,048 -5.99% Retail Apparel 405,035 447,459 -9.48% Retail Food 404,730 408,622 -0.95% Retail Gallery 13,365 64,247 -79.20% Retail Gift 8,525 9,497 -10.23% Retail Home Occupation 591 143 312.88% Retail Jewelry 74,487 97,697 -23.76% Retail Liquor 101,770 109,998 -7.48% Retail Other 873,413 949,095 -7.97% Retail Sport 257,841 323,779 -20.37% Retail Online Retailer 245,761 213,469 15.13% Total 2,385,518 2,624,005 -9.09% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review Q2 4.5% Sales Tax 2024 Collections 2023 Collections YoY % Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary 213 AGENDA ITEM NO. 8.1 Item Cover Page DATE:August 6, 2024 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Matters from Mayor, Council, Town Manager and Committee Reports AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (4:15pm) SUBJECT:Matters from Mayor, Council and Committee Reports (15 min.) SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 214 AGENDA ITEM NO. 8.2 Item Cover Page DATE:August 6, 2024 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Matters from Mayor, Council, Town Manager and Committee Reports AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (4:15pm) SUBJECT:Town Manager Report (5 min.) SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: TM Update 08-06-24 215 Town Managers Update August 6, 2024 1. Civic Area Planning/75 South Frontage Road-August 7 th at the Grand View Room At Council’s direction the primary focus of civic area plan has shifted to 75 South Frontage road and Town Hall. A public meeting is scheduled for Wednesday, August 7 th from 3:00 to 5:00 at the Grand View Room. 2. Timber Ridge Triumph has met the presales threshold set by both the Town of Vail and 1st Bank. A closing on the loan is scheduled on Friday, August 9 th and demolition and asbestos abatement is scheduled to begin the week of August 12th. 3. Other There may be other topics the Town Manager needs to share with the Town Council. 216 AGENDA ITEM NO. 8.3 Item Cover Page DATE:August 6, 2024 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Matters from Mayor, Council, Town Manager and Committee Reports AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (4:15pm) SUBJECT:Council Matters and Status Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2024-08-06 Council Matters 217 COUNCIL MATTERS Status Report Report for August 6,2024 Town Council gave a huge THANK YOU to staff for a fantastic 4th of July:they mentioned the event having a lot more energy and excitement, Dr. Jack Eck and ski patrol following him as Parade Marshall and the streets and trash cleaned up so quickly after the parade had come to an end. Big Thank You for the incredible summer season of music, from Ziggy Marley to La bohèm ! Social Media Listening https://share.sproutsocial.com/view/ca447d84-769e-48ba-847d-84769e78bae5 While influencer tourism posts were topping the engagement metrics, it was great to see great content and interaction around events like Vail Dance, Bravo!, fly fishing and soccer tournaments also in the top posts. Another highly engaged post was Colorado Governor Jared Polis sharing the Vail Daily article about his visit to Vail: https://www.facebook.com/100044275877199/posts/1032653784887141/ In the News______________________________________________________ July 11 Kroger -Albertsons Merger https://www.vaildaily.com/news/kroger-albertsons-merger-west-vail-safeway/ July 12 Community Work Days https://www.vaildaily.com/news/vail-fire-community-work-days-wildfire-risk/ July 13 Cougar Ridge Classic https://www.vaildaily.com/news/registration-is-open-for-vail-recreation-districts-new-26k-trail- race/ I-70 Closure -letter https://www.vaildaily.com/opinion/letter-thoughts-on-fridays-closure/ 218 July 14 Breck Loading and Delivery Pilot https://www.summitdaily.com/news/breckenridge-delivery-center-moved/ July 15 Internal Housing Program https://www.vaildaily.com/news/vail-employee-housing-rental-policy/ July 16 GoVail 2045 Plan https://www.vaildaily.com/news/vail-transportation-mobility-govail2045/ Drugs on Greyhound Bus https://www.vaildaily.com/news/vail-police-narcotics-greyhound-bus/ July 18 Artist in Residency Studio https://www.vaildaily.com/news/vail-wants-a-competitive-process-for-artist-in-residency-studio- as-costs-rise/ July 19 CloudStrike Issue https://www.vaildaily.com/news/emergency-services-failure-eagle-county/ July 24 Timber Ridge Development Agreement https://www.vaildaily.com/news/vail-timber-ridge-development-agreements/ Ruther Retirement https://www.vaildaily.com/news/vail-housing-george-ruther/ July 25 Gov Polis Visit https://www.vaildaily.com/news/colorado-governor-polis-vail-geothermal/ https://www.realvail.com/polis-kicks-off-heat-beneath-our-feet-geothermal-push-with-project-in- vail/a19661/ https://www.colorado.gov/governor/news/heat-beneath-our-feet-governor-polis-visits- geothermal-energy-grant-recipient-eagle-county Noise Pollution - letter https://www.vaildaily.com/opinion/letter-when-will-we-take-on-noise-pollution/ July 27 Gov Polis Visit https://coloradotimesrecorder.com/2024/07/in-vail-polis-blasts-worrisome-project-2025-scotus- enviro-record/63352/ 219 https://www.realvail.com/at-geothermal-launch-in-vail-polis-talks-project-2025-scotus-uinta- basin-oil-trains/a19676/ Upcoming Dates August 13 Community Picnic: Donovan September 10 Vail Social 220