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2011-06-07 Agenda and Support Documentation Town Council Evening Session
VAIL TOWN COUNCIL EVENING SESSION AGENDA TOWN OF M�� VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 3:00 P.M., JUNE 7, 2011 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. ITEM /TOPIC: Consent Agenda: 1) 2012 Budget Timetable and Philosophy, Kathleen Halloran (5 min.) PRESENTER(S): Various 2. ITEM /TOPIC: Town Manager Report: Revenue Highlights (15 min.) PRESENTER(S): Various 3. ITEM /TOPIC: Presentation of the 2010 audited financial statements. (15 min.) PRESENTER(S): Michael Jenkins, McMahan and Associates, LLC ACTION REQUESTED OF COUNCIL: The 2010 audited financial statements are presented for Council information; no action is requested. BACKGROUND: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and copies made available for public inspection at the municipal building. The 2010 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A, CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION: None - Information only. 4. ITEM /TOPIC: A request to proceed through the development review process with a proposal to re- construct and maintain existing private improvements (stairs and deck) on the Town of Vail owned Gore Creek stream tract, Tract A, Vail Village Filing 5, generally located adjacent to the Vail Trails East Condominiums at 433 Gore Creek Drive, and setting forth details in regard thereto. (20 minutes) PRESENTER(S): Bill Gibson, Planner and Steven Riden Architect, Applicant's Representative ACTION REQUESTED OF COUNCIL: On behalf of the property owner, the 6/7/2011 Vail Town Council shall approve, approve with conditions, or deny the applicant's request for property owner authorization to proceed through the Town's development review process. BACKGROUND: The Town of Vail development review process requires all applications to have the authorization of the property owner. Since the subject private improvements are located on Town of Vail owned property, the applicant must obtain the Vail Town Council's property owner authorization before proceeding with applications to re- construct and maintain the existing stairs and portions of the deck. STAFF RECOMMENDATION: There is no record that the subject stairs or deck were originally constructed with property owner approval from either Vail Resorts or the Town of Vail. Additionally, there is no record that the subject stairs or deck were originally constructed with development review approval from either Eagle County or the Town of Vail. On October 6, 2009, the Vail Town Council directed Staff to maintain a "zero tolerance" policy for allowing illegal private encroachments on town -owned stream tract lands. This policy was initiated to protect Vail's waterways and their surrounding riparian buffer zones, to provide public access to these recreational amenities, and to prevent the privatization of public property. Based upon this policy direction, Staff recommends the Vail Town Council denies the applicant's requests. For additional detail, please refer to the Staff memorandum dated June 7, 2011. 5. ITEM /TOPIC: A request to proceed through the development review process with a proposal to re- construct, snow melt, and maintain stairs in the Lionshead mall adjacent to Billy's Island Grill, located at Tract C, Lionhead 6th Filing, and setting forth details in regard thereto. (20 minutes) PRESENTER(S): Bill Gibson, Planner and Mark Hallenbeck, Rocky Mountain Construction Group ACTION REQUESTED OF COUNCIL: On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant's request for property owner authorization to proceed through the Town's development review process. BACKGROUND: The Town of Vail development review process requires all applications to have the authorization of the property owner. Since the subject private improvements are located on Town of Vail owned property, the applicant must obtain the Vail Town Council's property owner authorization before proceeding with applications to re- construct the subject stairs. STAFF RECOMMENDATION: Staff the Vail Town Council approves the applicant's request. For additional detail, please refer to the Staff memorandum dated June 7, 2011. 6. ITEM /TOPIC: Resolution No. 11, Series of 2011 - Acceptance of the donation of Glen Lyon Subdivision Tract H (15 min.) PRESENTER(S): George Ruther 6/7/2011 ACTION REQUESTED OF COUNCIL: Approve or Deny Resolution No. 11, Series of 2011 BACKGROUND: The owner of Glen Lyon Subdivision Tract H (the "Property ") would like to donate the Property to the Town of Vail. Passage of Resolution No. 11, Series of 2011, would authorize the Town Manager to execute, on behalf of the Town, an agreement to accept the Property. STAFF RECOMMENDATION: Approve Resolution No. 11, Series of 2011 7. ITEM /TOPIC: Town of Vail Facility -Wide Energy Conservation Project - Final Revised (30 mn) PRESENTER(S): Johnson Controls Inc., Kristen Bertuglia, Greg Hall ACTION REQUESTED OF COUNCIL: Staff requests that the Vail Town Council provide feedback on the answers to questions posed at the April 19th Town Council work session regarding the energy conservation measures proposed within the Facility Wide Energy Conservation Project, and provide direction to Staff on whether to proceed to contract with Johnson Controls Inc. for the project as written, proceed with modifications, or not to proceed. BACKGROUND: Buildings are the largest source (71 %) of the Town's energy consumption and greenhouse gas emissions, contributing over 8,400 tons of carbon dioxide (CO2) into the atmosphere in 2006 (GHG emissions as of 2009 were 9,497 tons CO2 for the facilities included in this project). Therefore, in effort to achieve the Town of Vail's stated sustainability goal of reducing energy consumption and greenhouse gas emissions by 20% by 2020, the Town of Vail contracted with Johnson Controls, Inc., an Energy Services Company (ESCO) in December, 2010, to perform energy audits on all Town -owned facilities and to create a detailed energy efficiency implementation plan, or "performance contract" to guide the Town in selecting priority upgrades to individual building systems. The goal was to achieve as close to a 20% reduction in energy consumption and greenhouse gas (GHG) emissions as possible, while achieving a payback period of 15 years for the overall project (further background information on the project process, may be found in Attachment A). The final project provides a 15 year payback and a 12% reduction in overall energy and greenhouse gas emissions, and was presented to the Vail Town Council on the April 19th, 2011 work session, where the Town Council posed the following questions: 1. Which energy improvement measures are included at each site, and what is the cost, greenhouse gas emissions savings, and operational savings breakdown? 2. How were projects bid, and what is the contractor selection process? 3. If the project provides a 12% reduction in energy and greenhouse gas emissions overall, how will the Town address the remaining 8 %? 4. What is the Johnson Controls fee percentage breakdown? The final project is a $3.2 million investment in the Town's facilities, with a 15 year payback, providing over $2.8 million in energy savings and $258,000 in 6/7/2011 operations and maintenance savings over the life of the term. STAFF RECOMMENDATION: Staff recommends that the Vail Town Council direct Staff to proceed to contract with Johnson Controls Inc. to complete the Facility Wide Energy Conservation project in its current revised format. 8. ITEM /TOPIC: Dinner Break (60 min.) 9. ITEM /TOPIC: Citizen Participation (15 min.) 10. ITEM /TOPIC: 2011 Vail Youth Recognition Award Presentation (10 min.) PRESENTER(S): Scott O'Connell 11. ITEM /TOPIC: Forest Service Wildland Mitigation Projects Update - Eagle /Holy Corss Ranger District (30 min. ) PRESENTER(S): David Neely, U.S. Forest Service ACTION REQUESTED OF COUNCIL: Information update regarding various projects in the Forest Service has planned in areas adjacent to the Town of Vail. This will be an opportunity for questions and clarifications from Council and the public. BACKGROUND: Dave Neely will share expectations /objectives for upcoming hazard tree mitigation work planned for Red Sandstone, Piney, Red and White and Buffehr Creek Roads. Additionally, expectations /projections will be discussed regarding the upcoming fire season and how the National Fire Policy shapes their approach to managing fire for multiple objectives. 12. ITEM /TOPIC: Premier Impressions Update (15 min.) PRESENTER(S): Rich Ten Braak, Vail Chamber & Business Association 13. ITEM /TOPIC: Update on projects under consideration for Conference Center funds (40 minutes) PRESENTER(S): Stan Zemler ACTION REQUESTED OF COUNCIL: Provide direction regarding projects proposed for consideration on a November ballot for use of $9.4 million Conference Center funds BACKGROUND: In April 2011 the Council directed the staff to begin preparing for a November 2011 election to seek public approval for use of the Conference Center funds. In addition, Council requested that we consider the public and council input on the various projects that were proposed and return with a possible list of projects for the ballot. Council also directed that the ballot should include specific projects that would be selected by Council. We are returning today with an update and recommendation of projects for consideration. STAFF RECOMMENDATION: Staff recommends Council consider the following projects for the Conference Center funds ballot as further described 6/7/2011 in the attached memo: "Gore Range" Pavilion; Ford Park Sports Complex; and Ford Amphitheater. 14. ITEM /TOPIC: First Reading of Ordinance No. 10, Series of 2011, amending 12 -13 -5: Employee Housing Deed Restriction Exchange Program, Vail Town Code, to allow for two new methods of exchange including a full fee -in -lieu option and a deed restriction relocation option. (30 min.) PRESENTER(S): Nina Timm ACTION REQUESTED OF COUNCIL: Approve, Approve with Modifications, or Deny Ordinance No. 10, Series of 2011 on first reading. BACKGROUND: At the March 1 and again at the April 12, 2011 Vail Local Housing Authority (VLHA) meetings the VLHA unanimously recommended adopting the proposed amendments to the Employee Housing Deed Restriction Exchange Program. At the April 25, 2011 Planning and Environmental Commission (PEC) the PEC voted 6 -1 (Pratt) to forward a recommendation of approval on the proposed amendments to the Town of Vail's Employee Housing Deed Restriction Exchange Program. STAFF RECOMMENDATION: ApproveOrdinance No. 10, Series of 2011 on first reading. 15. ITEM /TOPIC: Second Reading of Ordinance No. 13, Series of 2011, An Ordinance Defining Electronic Personal Assistive Mobility Device ( "EPAMD "); Establishing Regulations Regarding he Operation of Such Devices in the Town of Vail; and Setting Forth Details in Regard Thereto. (5 min.) PRESENTER(S): Matt Mire ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 13, Series of 2011, on second reading. BACKGROUND: Electronic Personal Assistive Mobility Devices ( "EPAMD ") have been operating in the Town on a trial basis since June of 2009, and the Council now wishes to permit the operation of EPAMD'S on a permanent basis. Pursuant to Colorado law this Ordinance is required to permit the operation of EPAMD's over and upon the Town's recreation paths. STAFF RECOMMENDATION: Approve, approve with modifications, or deny Ordinance No. 13, Series of 2011, on second reading. 16. ITEM /TOPIC: This work session will focus on the provision of meeting space, employee housing, hot beds, and office space within the proposed Ever Vail development. This presentation is intended to further the understanding of several elements of the Ever Vail development which are included in the proposed Resolution No. 6, Series of 2011, amendments. Lionshead Redevelopment Master Plan (Resolution No. 6, Series of 2011): A request for a recommendation to the Vail Town Council for an amendment to the Lionshead Redevelopment Master Plan, pursuant to Section 2.8, Adoption and Amendment of the Master Plan, Lionshead Redevelopment Master Plan, to amend the detailed plan 6/7/2011 recommendations for West Lionshead (Ever Vail), and setting forth details in regard thereto. (PEC 110002) Major Subdivision: A request for a review of a preliminary plan for a major subdivision, pursuant to Chapter 13 -3, Major Subdivision, Vail Town Code, to allow for the creation of two lots for the redevelopment of the properties known as Ever Vail (West Lionshead), located at 862, 923, 934, 953, 1000 and 1031 South Frontage Road West, and the South Frontage Road West right -of- way /unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080062) Rezoning (Ordinance No. 7, Series of 2011Y A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to allow for a establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision located generally at 862, 923, 934, 953, 1000, and 1031 South Frontage Road, and the South Frontage Road rig ht-of-way/un platted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080061) Special Development District Amendment (Ordinance No. 8, Series of 2011Y. 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- 9A -10, Amendment Procedures, Vail Town Code, to allow for the removal of Development Area D (Glen Lyon Office Building) from Special Development District No. 4, Cascade Village, and for a zone district boundary amendment, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to include the subject property in the Lionshead Mixed Use 2 District, located at 1000 South Frontage Road West/Lot 54, Glen Lyon Subdivison, and setting forth details in regard thereto. (PEC090036) Title 12, Zoning Regulations, Vail Town Code, Amendment ( Ordinance No. 9, Series of 2011): A request for a final recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Section 12- 10 -19, Core Areas Identified, Vail Town Code, to amend the core area parking maps to include "Ever Vail" (West Lionshead) within the "Commercial Core" designation, and setting forth details in regard thereto. (PEC080065) (40 min.) PRESENTER(S): Vail Resorts Development Company and Warren Campbell ACTION REQUESTED OF COUNCIL: The Community Development Department requests the Vail Town Council continue the Major Subdivision, Ordinance No. 7, 8, and 9, Series of 2011, and Resolution No. 6, Series of 2011 to the June 21, 2011 public hearing. BACKGROUND: Lionshead Redevelopment Master Plan: On January 24, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for proposed amendments to the Lionshead Redevelopment Master Plan, by a vote of 6/7/2011 3 -1 -2 (Rediker opposed, Viele and Cartin recused). Major Subdivision: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, on the preliminary plan for the major subdivision to establish Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5 -0 -2 ( Viele and Cartin recused). Rezoning: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a zone district boundary amendment to establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5- 0-2 ( Viele and Cartin recused). Special Development District Amendment: On January 24, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a major amendment to Special Development District (SDD) No. 4, Cascade Village, to remove the Glen Lyon Office Building from the SDD in order for it to be incorporated into the Ever Vail Subdivision, by a vote of 4 -0 -2 ( Viele and Cartin recused). Title 12, Zoning Regulations, Vail Town Code, Amendment: On January 11, 2010, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a prescribed regulations amendment to Section 12- 10 -19, Core Areas Identified, Vail Town Code, by a vote of 4 -0 -2 ( Viele and Cartin recused). STAFF RECOMMENDATION: The Community Development Department recommends the Vail Town Council continue the public hearing on the request for the Major Subdivision, Ordinance No. 7, 8, and 9, Series of 2011, and Resolution No. 6, Series of 2011 to the June 21, 2011 public hearing. 17. ITEM /TOPIC: Adjournment (9:05 P.M.) 6/7/2011 K � TOWN OF VA1 0 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Consent Agenda: 1) 2012 Budget Timetable and Philosophy, Kathleen Halloran PRESENTER(S): Various ATTACHMENTS: 2012 Budget Timetable & Philosophy 6/7/2011 TOWN OF VAIL Memorandum TO: Vail Town Council FROM: Finance Department DATE: June 2, 2011 SUBJECT: 2012 Budget timetable and philosophy I. SUMMARY The 2012 budget timetable (attachment A) is included for your review. This timetable provides for approval of the 2012 budget upon second reading of the budget ordinance on October 18, 2011. II. DISCUSSION In addition to the Vail Town Charter (attachment B) which sets forth certain requirements for the budget, staff will use the following philosophy during the 2012 budget process: • Develop a sustainable budget that operates within annual revenues • The town will develop a five -year financial projection for all major funds annually, including the Heavy Equipment Fund, Dispatch Services Fund, General Fund, Capital Projects Fund and the Real Estate Transfer Tax Fund. The five -year strategic capital plan will include the identification and prioritization of capital needs that are not funded within current projections. • Revenues will be projected conservatively using analytical processes. Revenue collections will be reviewed monthly or quarterly, depending on the revenue source, to determine variations from the budget. • Fund balances shall be adequate to cover short -term fluctuations in revenues, emergencies and planned future expenditures. It is recommended the General Fund balance be at least 25% of the budgeted revenues. During the redevelopment years, the Town Council directed a fund balance of 35% of budgeted revenues while significant construction took place in town. The 2011 amended budget projects a 79% fund balance in the General Fund, and staff continues to recommend strong reserve levels for 2012 and beyond. • On May 4, 2010 Council agreed that it was not necessary to carry a fund balance in the Capital Projects Fund or Real Estate Transfer Tax (RETT) Fund. The budget will continue to reflect the town's vision to be the premier mountain resort community and will support areas of strategic focus identified by Council including Parking and Transportation, Economic Development, Affordable Housing and Environmental Stewardship. 6/7/201 1 -1 -I Vail Town Council Attachment A Town of Vail Proposed 2012 Budget Timetable Budget Guidelines Completed Update of strategic long -term capital plan 04/19/11 V Presentation of 2010 audit report to Council 06/07/11 Budget timetable & philosophies submitted 06/07/11 Guidelines distributed to department heads 06/09/11 Staff prepares departmental budgets Mr Am 06/09/11 to 07/01/11 Council discussion of major revenue items 07/05/11 Town Manager reviews departmental budgets 07/11/11 to 07/29/11 2011/2012 parking task force meeting TBD Benefits discussion 07/19/11 Capital budget request for county funds 08/19/11 Council discussion of 5 -year Capital and RETT plans 08/16/11 Council review of Town Manager's budget - first draft 09/06/11 VLMD Board review of 2012 Operating Plan 09/06/11 Budget Documentation and Reporting First reading of 2011 Supplemental Number Two 07/05/11 Second reading of 2011 Supplemental Number Two 07/19/11 First reading of 2012 budget ordinance 10/04/11 Vail Local Marketing District Budget Resolution 10/04/11 Second reading of 2012 budget ordinance 10/18/11 Vail Reinvestment Authority Budget Resolution 10/18/11 First reading of mil levy certification ordinance 11/15/11 First reading of 2011 Supplemental Number Three 12/06/11 Second reading of mil levy certification ordinance 12/06/11 Second reading of 2011 Supplemental Number Three 12/20/11 Mil levy certification deadline to Eagle County 12/15/11 Budget book submission (to State) 01/31/12 Town of Vail Page 2 6/7/201 1 -1 -2 Vail Town Council Attachment B TOWN OF VAIL CHARTER ARTICLE IX TOWN FINANCES Section 9.1 - Fiscal Year: The fiscal year of the town shall commence on the first day of January or on such date each year as shall be fixed by the council. Section 9.2 - Provision For Tax System: The council may by ordinance provide a system for the assessment, levy and collection of all town taxes, not inconsistent with this Charter. Section 9.3 - Budget: The town manager shall annually prepare and submit to the council a budget and accompanying message. The budget shall provide a complete financial plan of all town funds and activities for the ensuing fiscal year and, except as required by law or this Charter, shall be in such form as the manager deems desirable or the council may require. In organizing the budget, the manager shall utilize the most feasible combination of expenditure classification by fund, organization unit, program, purpose or activity and object. It shall begin with a clear, general summary of its contents and shall be so arranged as to show comparative figures for income and expenditures of the preceding fiscal year. Section 9.4 - Capital Program And Additional Cent Sales Tax: The manager shall prepare a long -range capital program and submit same to the council no less than two (2) weeks prior to the submission of the budget. Such program shall include a statement as to the application of the sales tax revenues allocated by ordinance to the special revenue fund. Expenditure of these revenues other than for capital improvements and /or open space acquisition or improvements or for the payment of debt service on any obligations of the Town issued to finance the same shall require not less than five (5) affirmative votes of the council. Section 9.5 - Budget Hearing: A public hearing on the proposed budget and proposed capital program shall be held by the council no later than thirty (30) days prior to the close of the fiscal year. Notice of the time and place of such hearing shall be published one (1) time at least seven (7) days prior to the hearing. Section 9.6 - Council Amendments: After the public hearing, the council may adopt the budget with or without amendment. In amending the budget, it may add or increase programs or amounts and may delete or decrease any programs or amounts, except expenditures required by law or for debt service or for estimated cash deficit. Town of Vail Page 3 6/7/201 1 -1 -3 Section 9.7 - Council Adoption: The council shall adopt the budget by ordinance on or before the final day of the fiscal year. If it fails to adopt the budget by this date, the amounts appropriated for the current operation for the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month -to -month basis, with all items in it pro -rated accordingly, until such time as the council adopts the budget for the ensuing fiscal year. Section 9.8 - Property Tax Levy: Adoption of the budget by council shall constitute appropriations of the amounts specified therein as expenditures from the funds indicated. Council shall cause the property tax to be certified to the county for collection as required by law. Section 9.9 - Public Records: Copies of the budget and the capital program as adopted shall be public records and shall be made available to the public in the municipal building. Section 9.10 - Amendments After Adoption: (a) Supplemental Appropriations. If, during the fiscal year, the manager certifies that there are available for appropriation revenues in excess of those estimated in the budget, the council by ordinance may make supplemental appropriations for the year up to the amount of such excess. (b) Emergency Appropriations. To meet a public emergency affecting life, health, property or the public peace, the council may make emergency appropriations. Such appropriations may be made by emergency ordinance in accordance with provisions of Section 4.11. To the extent that there are no available unappropriated revenues to meet such appropriations, the council may by emergency ordinance authorize the issuance of emergency notes, which may be renewed from time to time, but the emergency notes and renewals of any fiscal year will be paid no later than the last day of the fiscal year next succeeding that in which the emergency appropriation was made. (c) Reduction Of Appropriation. If, at any time during the fiscal year, it appears probable to the manager that the revenues available will be insufficient to meet the amount appropriated, he shall report to the council without delay, indicating the estimated amount of deficit, any remedial action taken by him and his recommendation as to any other steps to be taken. The council shall then take such further action as it deems necessary to prevent or minimize any deficit and for that purpose it may by ordinance reduce one or more appropriations. (d) Transfer of Appropriations. Any time during the fiscal year, the manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office, agency and, upon written request of the manager, the council may by resolution transfer part or all of any unencumbered appropriation balance from one department, office, agency, or object to another. (e) Limitation; Effective Date. No appropriation for debt service may be reduced or transferred, and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. The supplemental and Town of Vail Page 4 6/7/20 1 1 -1 -4 emergency appropriations and reduction or transfer of appropriations authorized by this Section may be made effective immediately upon adoption. Section 9.11 - Independent Audit: An independent audit shall be made of all town accounts at least annually and more frequently if deemed necessary by the council. Such audit shall be made by certified public accountants selected by the council who shall complete the audit within four (4) months time of the close of the fiscal year. Copies of such audit shall be made available for public inspection at the municipal building. Town of Vail Page 5 6/7/201 1 -1 -5 K � TOWN OF VA1 0 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Town Manager Report: Revenue Highlights PRESENTER(S): Various ATTACHMENTS: Revenue Highlights 6/7/2011 TOWN OF VAIL REVENUE HIGHLIGHTS May 31, 2011 Sales Tax Upon receipt of all sales tax returns, April collections are estimated to be $1,184,449 up 4.4% from budget and 2.4% from last year. The ski season (November - April) is up 11.3% from prior year. Inflation as measured by the consumer price index was up 3.2% in April. Real Estate Transfer Tax (RETT) RETT collections through May 30 total $1,982,842, down 7.6% from this time last year. Annual budgeted revenue of $4.7 million is a 32% decrease from 2010 collections. Approximately $938,930 or 47.3% is from major redevelopment projects including Arrabelle, Four Seasons, Landmark, Manor Vail, Mountain View, Ritz Carlton Residences, Solaris, and The Sebastian. Collections not related to major redevelopment projects currently total $1,043,912, down 9.0% from this time last year. Summary Across all funds and revenue accounts through May 31, 2011, total revenue of $25.9 million is up 1.2% year -to -date from this time last year and up 3.5% from the budget. We have currently received 48% of total budgeted revenues for the year. -1- 6/7/2011 2 -1 -1 K � TOWN OF VA1 0 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Presentation of the 2010 audited financial statements. PRESENTER(S): Michael Jenkins, McMahan and Associates, LLC ACTION REQUESTED OF COUNCIL: The 2010 audited financial statements are presented for Council information; no action is requested. BACKGROUND: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and copies made available for public inspection at the municipal building. The 2010 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A, CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION: None - Information only. ATTACHMENTS: 2010 TOV Financials 6/7/2011 TOWN OF VAIL Financial Statements December 31, 2010 6/7/2011 3 -1 -1 Town of Vail, Colorado Financial Statements December 31, 2010 Table of Contents Page INDEPENDENT AUDITOR'S REPORT Al -A2 Management's Discussion and Analysis 131 —137 Government -Wide Financial Statements: Statement of Net Assets C1 Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 Proprietary Funds: Statement of Net Assets C5 Statement of Revenues, Expenses and Changes in Fund Net Assets C6 Statement of Cash Flows C7 Fiduciary Funds: Statement of Fiduciary Net Assets C8 Statement of Changes in Fiduciary Net Assets C9 Notes to the Financial Statements D1 — D32 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual E1- E2 Major Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual: Capital Projects Fund E3 Real Estate Transfer Tax Fund E4 Conference Center Fund E5 Vail Marketing Fund E6 Vail Local Marketing District E7 Vail Reinvestment Authority E8 Supplementary Information: Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual F1 Enterprise Funds: Schedule of Revenues, Expenses and Changes in Fund Net Assets — Budget (GAAP Basis) and Actual - Timber Ridge Affordable Housing Corporation F2 Schedule of Revenues, Expenses, and Changes in Fund Net Assets — Budget (Non -GAAP Basis) and Actual - With Reconciliation to GAAP Basis — Dispatch Services Fund F3 Internal Service Funds: Schedule of Revenues, Expenses, and Changes in Fund Net Assets — Budget (Non -GAAP Basis) and Actual - With Reconciliation to GAAP Basis — Heavy Equipment Fund F4 Schedule of Revenues, Expenses and Changes in Fund Net Assets — Budget (GAAP Basis) and Actual - Health Insurance Fund F5 6/7/2011 3 -I -2 Town of Vail, Colorado Financial Statements December 31, 2010 Table of Contents (Continued) Page Supplementary Information (continued): Internal Service Funds (continued): Combining Statement of Net Assets F6 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets F7 Combining Statement of Cash Flows F8 Major Special Revenue Funds: Schedule of Project Expenditures - Budget (GAAP Basis) and Actual: Capital Projects Fund F9 Real Estate Transfer Tax Fund F10 Local Highway Finance Report F11 —F Undertaking to Provide Continuing Disclosure: Table I — Debt Service Coverage G1 Table III — History of Town 4% Sales Tax Receipts G1 Table IV — Monthly Comparison of Collections of Sales Tax G1 Table V — Sales Tax Collections by Principal Sales Tax Generators G2 Table VI — Capital Projects Fund — 2010 Actual / Projected 2011 — 2014 G2 Table XIX — History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 Table XX — General Fund — 2010 Budget and Actual Comparison / 2011 Budget G4 Table XXI — Outstanding Revenue Obligations G4 Single Audit Reports and Schedules: Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards H1 — H2 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133 H3 — H4 Schedule of Findings and Questioned Costs H5 Schedule of Prior Audit Findings and Questioned Costs H6 Schedule of Expenditures of Federal Awards H7 6/7/2011 3 -I -3 M MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants (�q WEB SITE WWW.MCMAHANCPA.COM t�' 245 CHAPEL PLACE, SUITE 300 MAIN OFFICE: (970) 845 - 8800 CHAPEL SQUARE, BLDG C FACSIMILE (970) 845 1 A P.O. BOX 5850, AvON, CO 8 1 620 E - MAIL: MCMAHAN @MCMAHANCPA.COM INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado, (the "Town "), as of and for the year ended December 31, 2010, which collectively comprise the Town's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the Town. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above presently fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado, as of December 31, 2010, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with U.S. generally accepted accounting principles, In accordance with Government Auditing Standards, we have also issued our report dated May 5, 2011 on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control of financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. U.S. generally accepted accounting principles require that the Management's Discussion and Analysis in section B and the budgetary schedules in section E be presented to supplement the Town's basic financial statements. Such information, although not a part of the Town's basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Ale,,bcr: 1Uicrican Institute of Certif ,d i 1iccomztants D. JERRY MCMAHAN, C.P.A. DANIEL R. CUDAHY, C.P.A. PAUL J. BACKES, C.P.A. MICHAEL N. JENKINS, C.A., C.P.A. AVON ASPEN FRISCO (970) 845 -8800 (9 _6M 44-3996 (970) 668 -348 1 Al 3 -1 -4 To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado We have applied certain limited procedures to the Management's Discussion and Analysis in section B in accordance with U.S. generally accepted auditing standards, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the Town's basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary schedules in section E has been subjected to the auditing procedures applied in the audit of the Town's basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the Town's basic financial statements taken as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The accompanying supplementary information in section F (including individual fund budgetary statements, combining internal service fund financial statements, budgetary statements for project expenditures, and the Local Highway Finance Report) and section G (the Town's Undertaking to Provide Continuing Disclosure) are presented for the purpose of additional analysis and are not a required part of the Town's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards included in section H is presented for the purpose of additional analysis, as required by the U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and is not a required part of the Town's basic financial statements. The supplementary information in sections F and G, and the Schedule of Expenditures of Federal Awards, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the Town's basic financial statements. The information in section F and the Schedule of Expenditures of Federal Awards has been subjected to the auditing procedures applied in the audit of the Town's basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the Town's basic financial statements or to the financial statements themselves, and other additional procedures in accordance with U.S. generally accepted auditing standards. In our opinion, the information in section F and the Schedule of Expenditures of Federal Awards is fairly stated in all material aspects in relation to the financial statements as a whole. The information included in the Town's Undertaking to Provide Continuing Disclosure in section G have not been subjected to the auditing procedures applied in the audit of the Town's basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. McMahan and Associates, LLC May 5, 2011 6/7/2011 A2 3 -I -5 MANAGEMENT'S DISCUSSION AND ANALYSIS 6/7/2011 3 -1 -6 Town of Vail, Colorado Management's Discussion and Analysis December 31, 2010 As management of the Town of Vail, Colorado (the "Town "), we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended December 31, 2010. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements. The Town's basic financial statements include three components: 1) government -wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Financial Highlights: • The assets of the Town exceeded its liabilities at the close of the 2010 fiscal year by $169,612,699 (net assets). Of this amount, the unrestricted net assets of $90,397,562 may be used to meet the Town's ongoing obligations to citizens and creditors. • The Town's total net assets increased in the 2010 fiscal year by $13,963,971 which was attributable to an increase from governmental activities of $13,246,110 and an increase of $717,861 from business -type activities. • At December 31, 2010, the unrestricted and undesignated fund balance of the General Fund was $20,576,320 or approximately 76% of total fiscal year 2010 General Fund expenditures. Government -wide financial statements: The government -wide financial statements are designed to provide readers with a broad overview of the Town's finances in a manner similar to a private- sector business. The Statement of Net Assets presents information on the Town's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected grant revenues or earned but unused vacation leave.) Both of the government -wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) and those that are supported by external revenues (business -type activities). The governmental activities of the Town include general government, public safety, public works, transportation, and economic development. The business -type activities of the Town consist of housing conducted through Timber Ridge Affordable Housing Corporation (a component unit of the Town), and dispatch services, conducted through Vail Public Safety Communications (an enterprise fund of the Town). The government -wide financial statements include not only the Town itself (known as the primary government), but also a legally separate marketing district (Vail Local Marketing District), a legally separate urban renewal authority (Vail Reinvestment Authority), and a non - profit housing corporation (Timber Ridge Affordable Housing Corporation) for which the Town is financially accountable. Because these component units function for all practical purposes as departments of the Town, their financial position and activities have been included as an integral part of the primary government. The government -wide financial statements can be found on pages C1 and C2 of this report. 6/7/2011 B1 3 -I -7 Overview of the Financial Statements (continued) Fund Financial Statements: A fund is an accounting entity that has a set of self - balancing accounts that records all financial transactions for specific activities or governmental functions. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. The Town's funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the governments' near -term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town's governmental funds include the General Fund, Debt Service Fund, Capital Projects Fund and three Special Revenue Funds — Real Estate Transfer Tax Fund, Vail Marketing Fund and Conference Center Fund — as well as the Vail Local Marketing District and the Vail Reinvestment Authority, which are component units of the Town. The Town adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for all funds to demonstrate compliance with the state budget statute. The basic governmental fund financial statements can be found on pages C3 and C4 of this report. Proprietary Funds: The Town reports two categories of proprietary funds — Internal Service and Enterprise. The Heavy Equipment Fund and Health Insurance Fund are internal service funds, while Timber Ridge Affordable Housing Corporation, which is a component unit and the Dispatch Services Fund are reported as enterprise funds. As their name implies, the internal service funds provide services to the Town's governmental activities. Timber Ridge Affordable Housing Corporation provides affordable rental housing to people who work in Vail and the Dispatch Services Fund provides dispatch services to emergencies service agencies throughout Eagle County. Enterprise fund functions are presented as business -type activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages C5 through C7 of this report. The Town also presents a budgetary comparison for its proprietary funds. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the Town's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements, for the Town's pension plan, can be found on pages C8 and C9 of this report. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The Notes to the Financial Statements can be found on pages D1 through D32 of this report. 6/7/20 B2 3 -I -8 Overview of the Financial Statements (continued) Government -wide Financial Analysis: As previously mentioned, the government -wide financial statements are designed to provide readers with a broad overview and long -term analysis of the Town's finances, in a manner similar to a private- sector business. Net assets may serve over time as a useful indicator of a government's financial position. In the case of the Town, governmental assets exceeded liabilities by $168,488,798 at the close of the most recent fiscal year. Approximately 47% of the Town's net assets are invested in capital assets (land, buildings, equipment), less related outstanding debt. Since the Town uses these capital assets to provide services to citizens, these assets are not available for future spending, including provision of resources to repay the debt. The table below shows the Town's net assets for 2010 and 2009. Town of Vail's Net Assets Governmental Business -type Activities Activities Total 2010 2009 2010 2009 2010 2009 Current and Other Assets $ 99,762,195 $ 75,969,768 4,773,278 3,728,186 104,535,473 79,697,954 Capital Assets 96,132,099 94,896,884 16,863,515 17,565,866 112,995,614 112,462,750 Total Assets 195,894,294 170,866,652 21,636,793 21,294,052 217,531,087 192,160,704 Long -term Liabilities Outstanding 14,663,118 5,085,232 19,691,468 20,133,217 34,354,586 25,218,449 Other Liabilities 12,742,378 10,538,732 821,424 754,795 13,563,802 11,293,527 Total Liabilities 27,405,496 15,623,964 20,512,892 20,888,012 47,918,388 36,511,976 Net Assets: Invested in capital assets, net of related debt 79,788,340 88,551,884 (2,326,485) (1,054,134) 77,461,855 87,497,750 Restricted 1,753,282 1,589,428 - - 1,753,282 1,589,428 Unrestricted 86,947,176 65,101,376 3,450,386 1,460,174 90,397,562 66,561,550 Total Net Assets $ 168,488,798 155,242,688 1,123,901 406,040 169,612,699 155,648,728 The Town's current assets from governmental activities increased mainly due to $11.9 million of Tax Increment Bonds that were issued in November 2010. The bond proceeds at December 31, 2010 were largely unspent and therefore included in the cash balances at that date. The remaining increase in current assets was due to increased revenue collections during 2010, specifically sales tax, real estate transfer tax and ski lift tax. The Town's long -term liabilities from governmental activities increased due to $11.9 million of Tax Increment Bonds that were issued in November 2010. Other outstanding bonds include 2008 Sales Tax Revenue Bonds (a refinancing of the 1998A Sales Tax Revenue Bonds in order to save the town future interest expense) and the 2002B Sales Tax Revenue Bonds. The 2002B and 2008 Sales Tax Revenue Bonds will be retired in 2012, and the 2010A and 2010B Tax Increment Bonds will be retired in 2018 and 2030, respectively. Long -term liabilities from business activities decreased as a result of a principal payment on the corporation's 2003A bonds. The Timber Ridge Affordable Housing 2003A bonds and note payable mature in 2032. Additional information regarding the town's long -term debt is available on pages D21 — D28 of this report. 6/7/2011 B3 3 -I -9 Overview of the Financial Statements (continued) The chart below provides financial information from the Town's Statement of Activities for the years 2010 and 2009. Town of Vail's Changes in Net Assets Governmental Business -type Activities Activities Total 2010 2009 2010 2009 2010 2009 Revenue: Program Revenue Charges for services $ 9,952,961 $ 9,525,867 3,983,079 4,707,523 13,936,040 14,233,390 Operating grants 2,282,534 1,246,717 750,440 753,913 3,032,974 2,000,630 Capital grants 4,450,242 2,324,635 - - 4,450,242 2,324,635 General Revenue Property and ownership tax 7,329,812 6,501,540 7,329,812 6,501,540 Sales and lodging tax 21,468,640 19,973,861 21,468,640 19,973,861 Othertaxes 11,404,562 6,544,720 - - 11,404,562 6,544,720 Interest and other revenue 375,525 2,145,097 38,655 111,235 414,180 2,256,332 Total Revenue 57,264,276 48,262,437 4,772,174 5,572,671 62,036,450 53,835,108 Expenses: General government 6,619,693 6,654,032 - - 6,619,693 6,654,032 Public safety 8,604,466 8,595,127 2,406,428 2,366,369 11,010,894 10,961,496 Public works and transportation 20,235,385 20,080,195 - - 20,235,385 20,080,195 Culture and recreation 5,944,942 5,416,082 5,944,942 5,416,082 Economic development 2,364,570 3,187,747 - - 2,364,570 3,187,747 Housing - - 1,647,885 1,886,858 1,647,885 1,886,858 Interest 249,110 313,869 - - 249,110 313,869 Total Expenses 44,018,166 44,247,052 4,054,313 4,253,227 48,072,479 48,500,279 Increase in Net Assets 13,246,110 4,015,385 717,861 1,319,444 13,963,971 5,334,829 Net Assets January 1 155,242,688 151,227,303 406,040 (913,404) 155,648,728 150,313,899 Net Assets December 31 $ 168,488,798 155,242,688 1,123,901 406,040 169,612,699 155,648,728 Governmental Activities: Governmental activities increased the Town's net assets by $13,246,110. Key elements of this increase are as follows: • Revenue exceeded expenditures in the Capital Projects Fund and Real Estate Transfer Tax Fund by $6.1 million and $3.5 million, respectively. • Bond proceeds of $11.9 million are reflected as revenue for the Vail Reinvestment Authority, with the majority of corresponding expenditures budgeted over the next two years. • Long -term liabilities were reduced by $2.0 million through principal repayments. Business -type Activities: Business -type activities are comprised of: Timber Ridge Affordable Housing Corporation, a component unit of the Town established to provide affordable housing to people working in Vail, and Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. 6/7/2011 B4 3 -1 -10 Financial Analysis of the Town's Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds: The focus of the Town's governmental funds is to provide information on near - term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $85,629,090 an increase of $22,004,977 from the prior year's ending fund balances. The following details ending fund balances for the past five years: Fund 2006 2007 2008 2009 2010 General Fund $ 15,433,051 $ 19,834,717 $ 23,002,886 $ 23,423,417 $ 22,886,692 Capital Projects Fund 12,216,605 12,109,128 10,906,870 13,153,206 19,279,317 Real Estate Transfer Tax 8,956,389 11,769,273 17,288,266 14,216,947 17,681,155 Conference Center Fund 8,621,901 9,046,283 9,264,476 9,324,654 9,365,004 Vail Marketing Fund 46,517 62,619 83,635 106,359 138,171 Vail Local Marketing District 825,793 1,006,736 1,026,588 572,930 855,364 Debt Service Fund 249,256 252,710 174,334 189,428 194,282 Vail Reinvestment Authority 1,833 314,105 1,333,551 2,637,172 15,229,105 Total $ 46,351,345 $ 54,395,571 $ 63,080,606 $ 63,624,113 $ 85,629,090 The General Fund balance grew steadily until 2010, when reserves were used to cash -fund construction of a new West Vail Fire Station. The Capital Projects Fund and RETT Fund have fluctuated as funds have been spent on major projects and due to less revenue collections during recent economic challenges. The Conference Center Fund was created in 2003 to administer the sales and public accommodations taxes that went into effect on January 1, 2003 for the purpose of building and operating a conference center in the Town. However, the conference center taxes were rescinded as of January 1, 2006 with additional growth in the fund balance due entirely to earnings on investments. The balance in this fund will not be spent until there is an election concerning its use. Town Council is expected to propose a ballot in 2011. The Vail Reinvestment Authority (VRA) was added in 2004 to administer an urban renewal authority established in the LionsHead area of the town. During 2010, $11.9 million in bonds were issued to be used for various capital projects within the district, including a new transit and welcome Center, additional surface parking at the LionsHead parking structure, a remodel of the Vail Library and improvements to both the east and west portals into LionsHead Village. 6/7/2011 B5 3 - I - 11 MAJOR FUND BALANCES 25000 20000 15000 co t 10000 5000 IL 0 2006 2007 2008 2009 2010 ❑ General ■ Capital Projects ❑ Real Estate Transfer Tax ❑ Conference Center ■ All Other Financial Analysis of the Town's Funds (continued) Proprietary Funds: The Town's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets for the Heavy Equipment Fund and the Dispatch Services Fund at the end of the year were $2,197,958 and $1,446,786, respectively. The Health Insurance Fund net assets were $1,099,121, all of which are restricted for the Town's self- funded health insurance program. Budget Variances in the General Fund: General Fund revenue was higher than the amended budget by $481,960 or 1.6 %, including: Ski Area Lift Ticket Admissions Tax up $242,717; Construction Fees up $124,356; and Parking up $104,298. These revenue items were favorable mainly due to conservative budgeting. Expenditures were below budget by $2,057,991 or 7.0 %. The majority of the favorable spending variance was primarily due to expense savings in all departments, but also attributable to conservative budgeting. Capital Assets: The Town's government -wide capital assets, net of accumulated depreciation, increased $1,235,215. Capital additions included the start of construction on a new fire station at West Vail, a new transit center at the LionsHead parking structure, a new fire truck and various other projects. Additional information as well as a detailed classification of the Town's net capital assets can be found in the Notes to the Financial Statements on pages D18 through D20 of this report. Long -term Debt: As of the end of the current fiscal year, the Town had $4,310,000 in sales tax revenue bonds outstanding, of which $2,115,000 of bond principal is due within one year. The Vail Reinvestment Authority issued $11,940,000 of tax increment bonds during 2010, of which $250,000 of bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation totaled $18,190,000 of which $450,000 is due within one year. Additional information regarding the Town's debt can be found on pages D21 through D27. Sales Tax: During 2010, the Town had a 4% general sales tax to support governmental operations, including capital expenditures. The following chart shows changes in the general sales tax for the past five years. 6/7/2011 136 3 - I - 12 TOWN OF VAIL GENERAL SALES TAX 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2006 2007 2008 2009 2010 Next Year's Budget and Rates: The Town's General Fund balance at the end of the current fiscal year was $22,886,692 representing 75% of annual revenue. The town anticipates adding $175,372 to this fund balance during 2011. Request for information This financial report is designed to provide a general overview of the Town's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report should be addressed to the Town of Vail, Finance Director, 75 S. Frontage Road, Vail, CO 81657. 6/7/2011 137 3 - I - 13 GOVERNMENT -WIDE FINANCIAL STATEMENTS 6/7/2011 3 -1 -14 Town of Vail, Colorado Statement of Net Assets December 31, 2010 Governmental Business -type Activities Activities Total Assets: Equity in pooled cash and investments 66,395,531 1,606,498 68,002,029 Unrestricted cash and investments 3,332,082 1,665,742 4,997,824 Cash - restricted 13,621,524 1,030,707 14,652,231 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 4,905,159 - 4,905,159 Other taxes 3,690,160 3,690,160 Other governments 3,510,320 - 3,510,320 Employees 1,943 - 1,943 Other 1,194,432 26,564 1,220,996 Inventory 312,017 - 312,017 Prepaid expenses 24,672 16,214 40,886 Interest receivable 181,968 - 181,968 Loans receivable: Collectible within one year 15,000 15,000 Collectible in more than one year 2,228,341 - 2,228,341 Bond issue costs, net of accumulated amortization 316,965 427,553 744,518 Deferred debt refunding costs 32,081 - 32,081 Property, plant, and equipment, net of accumulated depreciation 96,132,099 16,863,515 112,995,614 Total Assets 195,894,294 21,636,793 217,531,087 Liabilities: Accounts payable 2,553,088 79,015 2,632,103 Due to other governments 47,422 - 47,422 Retainage payable 471,925 - 471,925 Accrued salaries and wages 882,040 70,636 952,676 Interest payable 13,656 186,244 199,900 Deferred property taxes 4,905,159 - 4,905,159 Other deferred revenue 492,577 1,217 493,794 Deposits payable 366,925 - 366,925 Debt issuance premium 125,840 - 125,840 Compensated absences: Due within one year 518,746 34,312 553,058 Due in more than one year 778,118 51,468 829,586 Bonds payable: Due within one year 2,365,000 450,000 2,815,000 Due in more than one year 13,885,000 17,740,000 31,625,000 Notes payable - 1,900,000 1,900,000 Total Liabilities 27,405,496 20,512,892 47,918,388 Net Assets: Invested in capital assets, net of related debt 79,788,340 (2,326,485) 77,461,855 Restricted for: Debt service 194,282 194,282 Emergencies 1,559,000 - 1,559,000 Unrestricted 86,947,176 3,450,386 90,397,562 Total Net Assets 168,488,798 1,123,901 169,612,699 The accompanying notes ar%pf iaf?gral part of these financial statements. 3 -1 -15 Town of Vail, Colorado Statement of Activies For the Year Ended December 31, 2010 Net (Expense) Revenue and Program Revenues Changes in Net Assets Operating Capital Charges for Grants and Grants and Governmental Business -type Governmental Activities: Expenses Services Contributions Contributions Activities Activities Total General Government: 6,619,693 3,952,273 - - (2,667,420) (2,667,420) Public Safety 8,604,466 336,486 195,226 - (8,072,754) (8,072,754) Public Works &Transportation 20,235,385 5,175,581 1,924,033 4,359,340 (8,776,431) (8,776,431) Culture & Recreation 5,944,942 174,169 163,275 90,902 (5,516,596) (5,516,596) Economic Development 2,364,570 314,452 - - (2,050,118) (2,050,118) Interest on long -term debt 249,110 (249.110) (249,110) Total Governmental Activities: 44,018,166 9.952.961 2,282,534 4.450.242 (27.332.428) (27,332,428) Business -type Activities: Dispatch services 2,406,428 1,678,562 750,440 - 22,574 22,574 Housing (Timber Ridge) 1,647,885 2,304,517 - 656,632 656,632 Total Business -type Activities: 4,054.313 3,983,079 750,440 679,206 679,206 Total 48,072,479 13,936,040 3,032,974 4,450,242 (27,332,428) 679,206 (26,653,222) General Revenues: Taxes: Sales and use taxes 19,513,927 - 19,513,927 Real estate transfer taxes 6,950,702 - 6,950,702 Lodging taxes 1,954,713 - 1,954,713 Property and specific ownership taxes 7,329,812 - 7,329,812 Ski area lift ticket admissions tax 3,357,717 - 3,357,717 Franchise taxes 1,023,398 - 1,023,398 Cigarette taxes 72,745 - 72,745 Investment earnings 357,037 16,151 373,188 Gain on sale of capital assets (57,861) - (57,861) Miscellaneous 76,349 22,504 98,853 Total General Revenues and Transfers 40,578,538 38,655 40,617,193 Change in Net Assets 13,246,110 717,861 13,963,971 Net Assets - January 1 155.242.688 406,040 155.648.728 Net Assets - December 31 168.488.798 1,123,901 169.612.699 The accompanying notes are an integral part of these financial statements. C2 6!7/2011 3 -1 -16 FUND FINANCIAL STATEMENTS 6/7/2011 3 -1 -17 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2010 Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds Assets: Equity in pooled cash and investments 23,269,098 12,329,260 17,710,651 9,365,004 138,171 - - 194.282 63,006,466 Cash and cash equivalents - Unrestricted 10,585 - - - - 413,404 2,908,093 3,332,082 Cash and cash equivalents - Restricted - - 13,090,093 - 13,090,093 Receivables, net of allowance for uncollectible accounts: Property taxes assessed 4,905,159 - - - - - - - 4,905,159 Othertaxes 155,541 3,047,282 50,064 - - 437273 - - 3,690,160 Other governments 13.935 3,478,099 - - - 18,286 - - 3,510,320 Employees 1,943 - - - - - - - 1,943 Other 804,629 219,835 18,630 1,043,094 Due from other funds - 726,216 - - - - - - 726,216 Loans receivable 328,341 1,915,000 2,243,341 Prepaid expenses 24.672 - - - - - - - 24.672 Total Assets 29,513.903 21.715,692 17.779.345 9.365.004 138.171 868.963 15.998.186 194.282 95.573.546 Liabilities and Fund Equity: Liabilities: Accounts payable 411,777 1,587,484 78.698 - - 13.599 - - 2,091,558 Due to other governments 4,557 - - - - - 42,865 - 47,422 Due to other funds - - - - - - 726,216 - 726,216 Retainage payable - 471,925 - - - - - - 471,925 Accrued payroll and related liabilities 820,335 2,847 19.492 - - - - - 842,674 Deferred revenue 118,458 374,119 - - - - - - 492,577 Deferred property taxes not collectible until subsequent year 4,905,159 - 4,905,159 Deposits payable 366,925 - - 366,925 Total Liabilities 6,627,211 2,436,375 98,190 - - 13,599 769,081 - 9,944,456 Fund Balances: Reserved for: Prepaid expenses 24,672 - - - - - - - 24,672 Loans receivable 328,341 1,915,000 - - - - - - 2,243,341 Retirement of bonded debt - - - - - - - 194,282 194,282 Emergencies 1,500,000 59,000 - 1,559,000 Unreserved: Designated for housing loan program 361,659 - 361,659 Designated for police seizures 95,700 - 95,700 Designated for subsequent years' expenditures - 3,446,310 - - - - - - 3,446,310 Undesignated 20,576,320 13,918,007 17.681.155 9,365,004 138,171 796,364 15,229,105 - 77,704,126 Total Fund Balances 22,886,692 19,279,317 17.681.155 9,365,004 138,171 855,364 15,229,105 194,282 85,629,090 Total Liabilities and Fund Balances 29.513.903 21.715.692 17.779.345 9.365.004 138.171 868.963 15.998.186 194,282 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 92,696,881 Other long -term assets and deferred charges are not available for current period expenditures and, therefore, are not reported in the funds. 1,062,445 Internal service funds are used by management to charge the costs of heavy equipment and health insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. 6,732,297 Long -term liabilities, including bonds payable, interest payable, and compensated absences, are not due and payable in the current period and, therefore, are not reported in the funds. (17,631,915) Net Assets of Governmental Activities 168,488.798 The accompanying note647420ilitegral part of these financial statements. C3 3 -1 -18 Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2010 Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds Revenues: Taxes 19,493,152 8,815,138 6,950,702 - 1,954,713 2,370,229 39,583,934 Permits and licenses 1,387,337 - - 314,452 - - 1,701,789 Intergovernmental revenue 1,929,121 3,576,818 46,527 - 5,552,466 Charges for services 7,046,381 210,568 165,949 - - - 7,422,898 Investment income 119,049 60,377 81,801 40,350 1,083 1,084 3,971 4,728 312,443 Miscellaneous 386,271 2,430,917 114,483 - - - - - 2,931,671 Total Revenues 30,361,311 15,093,818 7,359,462 40,350 315,535 1,955,797 2,374,200 4,728 57,505,201 Expenditures: General government 5,928,142 - - - - - - 500 5,928,642 Public safety 7,619,415 - 206,154 - 7,825,569 Public works and transportation 11,204,253 11,507,388 1,870,194 24,581,835 Culture and recreation 2,403,553 - 1,818,906 4,222,459 Economic development - - 283,723 1,673,363 478,436 - 2,435,522 Debt service: Principal - - - 2,035,000 2,035,000 Interest - - - - - - 238,331 238,331 Total Expenditures 27,155,363 11,507,388 3,895,254 283,723 1,673,363 478,436 2,273,831 47,267,358 Excess (Deficiency) of Revenues Over Expenditures 3,205,948 3,586,430 3,464,208 40,350 31,812 282,434 1,895,764 (2,269,103) 10,237,843 Other Financing Sources (Uses): Sale of assets - 600 - - - - - 600 Debt proceeds, net - 11,766,534 - 11,766,534 Transfers in 4,813,038 - 2,273,957 7,086,995 Transfers (out) (3,742,673) (2,273,957) (1,070,365) - (7,086,995) Total Other Financing Sources (Uses) (3,742,673) 2,539,681 10,696,169 2,273,957 11,767,134 Net Change in Fund Balances (536,725) 6,126,111 3,464,208 40,350 31,812 282,434 12,591,933 4,854 22,004,977 Fund Balances - January 1 23,423,417 13,153,206 14,216,947 9,324,654 106,359 572,930 2,637,172 189,428 63,624,113 Fund Balances - December 31 22,886,692 19,279,317 17,681,155 9,365,004 138,171 855,364 15,229,105 194,282 85,629,090 Net Change in Fund Balances of Governmental Funds 22,004,977 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlay, net of disposals for the year. 957,393 Internal service funds are used by management to charge the cost of heavy equipment and health insurance to individual funds. This is the amount of internal service fund change in net assets for the year. 69,204 Governmental funds report debt proceeds as a financing source. However, in the Statement of Net Assets, bond proceeds are shown as a liability. This is the amount of bond proceeds, net of issuance costs and premiums. (11,766,534) Repayment of bond and lease principal are expenditures in the governmental funds, but the repayment reduces long -term liabilities in the Statement of Net Assets. This is the amount of principal repayments. 2,035,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 1,861 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (55,791) Change in Net Assets of Governmental Activities 13,246,110 The accompanying notes6�r part of these financial statements. C4 3 -1 -19 Town of Vail, Colorado Proprietary Funds Statement of Net Assets December 31, 2010 Business -type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 1,606,498 1,606,498 3,389,065 Cash and cash equivalents - Unrestricted 1,665,742 - 1,665,742 - Accounts receivable , net of allowance for uncollectibles 13,809 12,755 26,564 151,338 Inventory - - - 312,017 Prepaid expenses 16,214 - 16,214 - Total Current Assets 1,695,765 1,619,253 3,315,018 3,852,420 Non - current Assets: Cash and cash equivalents - Restricted 1,030,707 - 1,030,707 Bond issue costs, net of accumulated amortization 427,553 - 427,553 - Property, plant, and equipment, net of accumulated depreciation 16,104,636 758,879 16,863,515 3,435,218 Total Non - current Assets 17,562,896 758,879 18,321,775 3,435,218 Total Assets 19,258,661 2,378,132 21,636,793 7,287,638 Liabilities: Current Liabilities: Accounts payable 48,972 16,051 65,023 461,530 Tenant security deposits 13,992 - 13,992 - Deferred revenue 1,217 1,217 Accrued interest payable 186,244 - 186,244 - Accrued salaries and wages - 70,636 70,636 39,366 Current portion of bonds payable 450,000 - 450,000 - Current portion of compensated absences - 34,312 34,312 21,778 Total Current Liabilities 700,425 120,999 821,424 522,674 Non - current Liabilities: Bonds payable, net of current portion 17,740,000 - 17,740,000 - Notes payable 1,900,000 - 1,900,000 - Compensated absences, net of current portion - 51,468 51,468 32,667 Total Non - current Liabilities 19,640,000 51,468 19,691,468 32,667 Total Liabilities 20,340,425 172,467 20,512,892 555,341 Net Assets (Deficit): Invested in capital assets, net of related debt (3,085,364) 758,879 (2,326,485) 3,435,218 Unrestricted 2,003,600 1,446,786 3,450,386 3,297,079 Total Net Assets (Deficit) (1,081,764) 2,205,665 1,123,901 6,732,297 The accompanying notes are �Nr�qgqal part of these financial statements. C5 3 -1 -20 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2010 Business -type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Operating Revenues: Charges for services - Internal 520,411 520,411 5,329,455 Charges for services - External - 1,158,151 1,158,151 353,022 Rent 2,286,910 - 2,286,910 - Laundry room lease 17,607 17,607 - Insurance reimbursements - - - 710,089 Other 6,763 15,741 22,504 16,712 Total Operating Revenues 2,311,280 1,694,303 4,005,583 6,409,278 Operating Expenses: Operations 1,260,746 2,179,773 3,440,519 2,112,612 Health claims and premiums - - - 3,701,496 Depreciation - 226,655 226,655 564,862 Total Operating Expenses 1,260,746 2,406,428 3,667,174 6,378,970 Operating Income (Loss) 1,050,534 (712,125) 338,409 30,308 Non - Operating Revenues (Expenses): Intergovernmental revenues - 750,440 750,440 - Gain (loss) on disposal of assets - - - 22,803 Investment income 9,416 6,735 16,151 16,093 Interest expense (80,225) - (80,225) - Financing fees (267,793) (267,793) Amortization of bond issue costs (39,121) - (39,121) - Total Non - Operating Revenues (Expenses) (377,723) 757,175 379,452 38,896 Change in Net Assets 672,811 45,050 717,861 69,204 Net Assets (Deficit) - January 1 (1,754,575) 2,160,615 406,040 6,663,093 Net Assets (Deficit) - December 31 (1,081,764) 2,205,665 1,123,901 6,732,297 The accompanying notes are �mi"jal part of these financial statements. C6 3 -I -21 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2010 Business -type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Cash Flows From Operating Activities: Cash received from other funds - 541.018 541.018 5.329.455 Cash received from tenants for rent 2,275,622 - 2,275,622 - Cash received from (refunded to) tenants for security deposits, net 3,767 - 3,767 - Other cash receipts 24.370 1.173,892 1,198,262 1,158,843 Cash paid for goods and services (744,943) (460,408) (1,205,351) (4,892,952) Cash paid to employees - (1,693.788) (1,693.788) (954.640) Net Cash Provided (Used) by Operating Activities 1.558.816 (439.286) 1.119.530 640.706 Cash Flows From Non - Capital Financing Activities: Cash received from operating grants - 750.440 750.440 - Net Cash Provided by Non - Capital Financing Activities 750.440 750.440 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets - - 121.734 Principal repaid on bonds and notes (430,000) (430,000) - Cash drawn on line of credit 52.668 52.668 Repayments of amounts drawn on line of credit (52.668) (52.668) Interest paid (52,668) (52,668) Financing fees paid (259.080) (259,080) Bond Issuance costs paid (4,000) (4,000) Acquisition and construction of capital assets (43.571) (43.571) (941.615) Net Cash (Used) by Capital and Related Financing Activities (745.748) (43,571) (789.319) (819.881) Cash Flows From Investing Activities: Interest on investments 9.416 6.735 16,151 16.093 Net Cash Provided by Investing Activities 9.416 6.735 16.151 16.093 Net Increase (Decrease) in Cash and Cash Equivalents 822,484 274.318 1,096,802 (163,082) Cash and Cash Equivalents - Beginning 1.873.965 1.332.180 3.206.145 3.552.147 Cash and Cash Equivalents - Ending 2.696.449 1.606.498 4.302.947 3.389.065 Cash and Cash Equivalents - End of Period is Comprised of: Equity in pooled cash and investments - 1.606,498 1.606,498 3.389.065 Cash and cash equivalents - Unrestricted 1,665,742 - 1,665,742 - Cash and cash equivalents - Restricted 1.030,707 1.030.707 - Total - Cash and Cash Equivalents 2.696.449 1.606.498 4.302.947 3.389.065 Reconciliation of Operating (Loss) to Net Cash Provided by Operating Activities: Operating Income /(Loss) 1.050.534 (712.125) 338,409 30.308 Adjustments: Depreciation 519,267 226,655 745.922 564.862 (Increase) decrease in accounts receivable (13,255) 20,607 7,352 79,020 (Increase) decrease in inventory - - - (20,643) (Increase) decrease in prepaid expenses 521 - 521 Increase (decrease) in accounts payable (3,235) 2,686 (549) (10,139) Increase (decrease) in other liabilities 4,984 - 4,984 Increase (decreases) in accrued wages and benefits - 22.891 22.891 (2.702) Total Adjustments 508.282 272.839 781.121 610.398 Net Cash Provided (Used) by Operating Activities 1.558.816 (439.286) 1.11 %530 640.706 Schedule of Non -Cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund - - - Total - Non -Cash Investing, Capital and Financing Activities: The accompanying notes are07�nftjal part of these financial statements. C7 3 -I -22 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Assets December 31, 2010 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 42,018,929 8,270,075 Loans to participants 561,342 - Total Assets 42,580,271 8,270,075 Net Assets: Held in trust for pension benefits and other purposes 42,580,271 8,270,075 Total Net Assets 42,580,271 8,270,075 The accompanying note integral part of these financial statements. C8 3 -I -23 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Assets For the Year Ended December 31, 2010 Deferred Pension Compensation Trust Plan Additions: Contributions 2,697,349 710,961 Investment Income / (Loss) 4,396,015 816,490 Total Additions 7,093,363 1,527,451 Deductions: Professional fees 12,604 53 Benefits paid 2,893,705 284,115 Total Deductions 2,906,309 284,168 Change in Net Assets 4,187,054 1,243,283 Net Assets - January 1 38,393,217 7,026,792 Net Assets - December 31 42,580,271 8,270,075 The accompanying not%.�%pp integral part of these financial statements C9 3 -1 -24 NOTES TO THE FINANCIAL STATEMENTS 6/7/2011 3 -1 -25 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 I. Summary of Significant Accounting Policies The Town of Vail, Colorado (the "Town ") was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under a Council- Manager form of government. The Town's major operations include public safety, public works and transportation, culture and recreation, economic development, administration (general government), and housing. The Town's financial statements are prepared in accordance with generally accepted accounting principles ( "GAAP "). The Governmental Accounting Standards Board ( "GASB ") is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). Governments are also required to follow the pronouncements of the Financial Accounting Standards Board ( "FASB ") issued through November 30, 1989, when applicable, that do not conflict with or contradict GASB pronouncements. The more significant accounting policies established by GAAP used by the Town are discussed below. A. Reporting Entity The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Town is financially accountable. The Town is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. Consideration is also given to other organizations which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. The accompanying financial statements present the primary government and its component units; entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town's operations. There are three blended component units reported in the Town's financial statements: Vail Local Marketing District (the "District "), Timber Ridge Affordable Housing Corporation (the "Corporation ") and Vail Reinvestment Authority (the "Authority "). The financial statements of theses entities can be obtained from the Town's administrative offices. A fourth blended component unit, the Town of Vail General Improvement District No. 1, is a dormant entity and, therefore, has no financial statements to report. 1. Vail Local Marketing District The District was authorized on November 2, 1999 by a general election that established a 1.4% tax on lodging within the Town's boundaries, beginning January 1, 2000. Proceeds from the tax are to be used for organization, management, promotion, and marketing of public events, for business recruitment, and for tourism promotion. Town Council members also act as the District's Board of Directors. The District is reported as a special revenue fund. 6/7/2011 D1 3 -1 -26 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation The Corporation was incorporated on July 9, 2003 as a Colorado non - profit corporation to provide affordable housing for persons employed in the Town or Eagle County, Colorado. The Corporation owns and operates, exclusively on behalf of and for the benefit of the Town, a 198 -unit rental housing project (the "Project ") located in the Town. The formation of the Corporation was approved by the Town, and its operations are governed by a Board of Directors comprised, as of March 2005, of members of the Town's management team. Previously, the Board was comprised solely of members of the Town Council. Upon dissolution of the Corporation and retirement of all liabilities, all property of the Corporation is to be transferred to the Town. The acquisition of the Project was financed through the issuance of revenue bonds and a note payable to the Town. While the Town is not legally obligated to pay the indebtedness of the Corporation, the Town has agreed to consider providing funds, if needed, to the Corporation to make the scheduled debt service payments of the Corporation. The Town has a right to obtain title to the Project at any time by defeasing all outstanding bonds of the Corporation. The Corporation is reported as an enterprise fund. The Corporation's total revenues exceeded expenses by $672,811 for 2010. This helped to improve the Corporation's deficit net assets balance accumulated in the period from inception of operations, July 17, 2003 to December 31, 2007. The net asset deficit totals $1,081,764 as of December 31, 2010. Since the inception of operations, the Corporation has incurred mold remediation costs totaling $1,417,292, of which the majority of expenses were incurred prior to 2007. As of January 2007, all 198 units at the Project had been renovated. In addition to limitations on the Corporation's revenue base, the Corporation has substantial long -term debt obligations. As detailed in Note IV.G.1., a significant portion of the Corporation's bonds currently bears a variable weekly interest rate. Short -term interest rates have fluctuated since the issuance of these bonds. The Corporation's Rate Protection Agreement outlined in Note V. F. below, has limited the Corporation's effective interest rate on the 2003A Bonds to 5.5% per annum. While short -term interest rates have stabilized below the current rate cap threshold, any significant increase in rates could have an adverse impact on the Corporation's cash flow. At the time of purchase, the Town advanced the Corporation $1,000,000 of the purchase price of the property. During 2005 and 2006, the Corporation was advanced $700,000 and $200,000 respectively, by the Town. This additional funding helped improve the Corporation's year -end liquidity position. There have been no additional advances from the Town. 6/7/2011 D2 3 -I -27 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation (continued) In 2007, the Board commissioned an engineering study and began a capital maintenance and replacement program to address the deteriorating condition of the property. The Replacement Reserve Fund is used to fund the program. During 2009 the Corporation and the Town executed a Pre - Development Agreement with Vail Timber Ridge LLC ( "VTR LLC ") under which the Corporation would enter into a long -term ground lease with VTR LLC for a portion of the site on which the Project is located, upon which VTR LLC is to develop 359 Employee Housing Units. As specified in the Pre - Development Agreement, the ground lease would require VTR LLC to pay a one -time payment of $11,000,000 at closing of the lease, which is to occur within 30 days of final approval of all VTR LLC's applications for the development and satisfaction of all conditions for financing of the redevelopment. The Town also agrees to refund construction and building materials use tax associated with the construction of the Employee Housing Units and to forgo certain fees otherwise imposed by the Town. The Pre - Development Agreement provides that the parties will negotiate in good faith with VTR LLC for an exclusive option to develop the adjacent property, with the option having a 5 -year term. The Pre - Development Agreement terminates in November 2011, unless earlier terminated by the parties. On March 22, 2010, VTR LLC's development plan received approval from the Town's Planning and Environmental Commission, conditional upon identification of a rockfall mitigation plan. The Town and VTR LLC continue to work on that plan. In January 2010, VTR LLC submitted an application to the U.S. Department of Housing and Urban Development ( "HUD ") related to financing of the project. Processing the application through HUD has been delayed several times due to changes in HUD requirements and staffing. A final determination on the application is still pending. 3. Vail Reinvestment Authority The Authority was created on November 4, 2003 pursuant to the Colorado Urban Renewal Law (C.R.S. 31 -25 -1) to oversee development and redevelopment of identified blighted areas within the Town. The Town Council approved the formation of the Authority at a public hearing, and filed applicable certification of compliance with the Division of Local Government. Its operations are governed by a Board of Commissioners comprised solely of members of the Town Council. The Authority is reported as a special revenue fund. 4. Town of Vail General Improvement District No. 1 On October 3, 2006, the Town Council accepted a petition requesting formation of the Town of Vail Public Improvement District No. 1. The District is a public, or quasi - municipal subdivision of the state of Colorado and a body corporate with the powers set forth in Part 6, Article 25, Title 31 of the Colorado Revised Statutes. The Town Council is the ex officio Board of Directors of the District. Services provided by the District include (a) programming, regulating, and generally administering public functions to be conducted on the public plaza which will be constructed as part of 6/7/2011 D3 3 -I -28 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 4. Town of Vail General Improvement District No. 1 (continued) the Solaris redevelopment project and (b) maintaining the plaza to the extent that the Solaris Metropolitan District fails to do so. At a special election on November 7, 2006, the eligible electors of the District authorized imposition of a mill levy of not more than fifteen mills in any year for the purpose of funding the administration, operation, and maintenance of the District's facilities should the Solaris Metropolitan District fail to do so. As of December 31, 2010, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. B. Government -wide and Fund Financial Statements The Town's basic financial statements include both government -wide (reporting the Town as a whole) and fund financial statements (reporting the Town's major funds). Government -wide financial statements report on information of all of the non - fiduciary activities of the Town and its component units. Both the government -wide and fund financial statements categorize primary activities as either governmental or business -type. The Town's public safety, public works and transportation, culture and recreation, economic development, and administration functions are classified as governmental activities. The Corporation and emergency dispatch services of the Town are classified as business -type activities. The government -wide Statement of Activities reports both the gross and net cost of each of the Town's governmental functions and business -type activities. The governmental functions are also supported by general government revenues (sales taxes, property and specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the governmental function or a business -type activity. Operating grants include operating- specific and discretionary (either operating or capital) grants while the capital grants column reflects capital- specific grants. The government -wide focus is on the sustainability of the Town as an entity and the change in the Town's net assets resulting from the current year's activities. C. Fund Financial Statements The financial transactions of the Town are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self - balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures /expenses. The fund focus is on current available resources and budget compliance. The Town reports the following major governmental funds: The General Fund is the Town's primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. 6/7/2011 D4 3 -I -29 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements (continued) The Capital Projects Fund accounts for a portion of the Town's sales tax and intergovernmental revenue which are restricted for the acquisitions of and improvements to the Town's governmental assets. The Real Estate Transfer Tax Fund is used to account for the collection of a real estate transfer tax which is specifically restricted for acquiring, maintaining, and improving real property for parks, recreation, open space and for supporting sustainable environmental practices. The Conference Center Fund was established to account for the collection of a sales tax and a public accommodations tax which were specifically restricted for the financing of the construction and operations of a conference center in the Town. The conference center taxes were rescinded by election in November, 2005, and a subsequent election is required to release conference center funds for any purpose. The Vail Marketing Fund accounts for the collection of business license fees which are specifically restricted for expenditures related to the marketing of the Town. The Vail Local Marketing District is used to account for the activities of the District. The Vail Reinvestment Authority is used to account for the activities of the Authority. The Town reports the following major proprietary or business -type funds: Timber Ridge Affordable Housing Corporation accounts for the activities of the Corporation. The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. Additionally, the Town reports the following fund types: Internal service funds account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. In addition, internal service funds are used to account for the health insurance plan provided to Town employees. Trust funds are used to account for the accumulation of resources for pension benefit payments to qualified Town employees and to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. No budget is adopted for the Town's trust funds. 6/7/201 D5 3 -1 -30 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long -term resources (long -term economic focus). Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1. Long -term Economic Focus and Accrual Basis Both governmental and business -type activities in the government -wide financial statements and the proprietary and fiduciary fund financial statements use the long- term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. 2. Current Financial Focus and Modified Accrual Basis The governmental fund financial statements use the current financial focus and are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. "Available" means collectible within the current period or soon enough thereafter (60 days) to be used to pay liabilities of the current period. Expenditures are generally recognized when the related liability is incurred. The exception to this general rule is that principal and interest on general long -term debt and compensated absences are recorded only when payment is due. 3. Financial Statement Presentation Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the Town's enterprise funds are rents from individuals employed in the Town and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses. 6/7/2011 D6 3 -I -31 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts 1. Equity in Pooled Cash and Investments The Town has a policy of central cash management for all funds except the Pension Trust Fund and the Deferred Compensation Plan Fund. In addition, the component units do not participate in the Town's central cash management. Equity in pooled cash and investments include demand deposits, short -term investments with original maturities of three months or less from the date of acquisition, and long -term investments in U.S. government obligations. Investments are stated at fair market value. 2. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. Restricted cash and cash equivalents represent amounts restricted by bond indentures and other binding commitments. 3. Receivables Receivables are reported net of an allowance for uncollectible accounts. 4. Property Taxes Property taxes are assessed in one year as a lien on the property, but not collected by the governmental unit until the subsequent year. In accordance with GAAP, the assessed but uncollected property taxes have been recorded as a receivable and as deferred revenue. 5. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Inventory in the Heavy Equipment Fund consists of expendable supplies held for consumption. 6. Prepaid Expenses Payments made to vendors for services that will benefit periods beyond December 31, 2010 are recorded as prepaid expenses. 7. Bond Issuance Costs Issuance costs for bonds payable are deferred and amortized over the term of the loan using the straight -line method for governmental activities. The Corporation and the Authority use the bonds outstanding method, which approximates the effective interest method, to amortize these costs. 6/7/2011 D7 3 -I -32 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 8. Interfund Receivables and Payables Balances at year -end between funds are reported as "due to / from other funds" in the fund financial statements. Any residual balances not eliminated between the governmental and business -type activities are reported as "internal balances" in the government -wide financial statements. 9. Capital Assets Capital assets, which include land, buildings, improvements, equipment, vehicles and infrastructure assets, are reported in the applicable governmental or business - type activity columns in the government -wide financial statements. Capital assets are defined by the Town as assets with an initial cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at cost where historical records are available and at an estimated historical cost where no historical record exists. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Capital outlay for projects is capitalized as projects are constructed. Capital assets (excluding land and art) are depreciated using the straight -line method. 10. Bond Premiums and Discounts Bonds payable are reported net of the applicable bond premium or discount. No amortization was taken on these premiums or discounts in the first year. These premiums and discounts are amortized over the life of the applicable bonds using the bond outstanding method. 11. Deferred Revenue For governmental funds, deferred revenues arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. For proprietary funds, deferred revenues arise when potential revenue is unearned. In subsequent periods, when revenue recognition criteria are met, or when the Town has legal claim to the resources, the liability for deferred revenue is removed and revenue is recognized. 6/7/2011 D8 3 -I -33 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 12. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government -wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for non - vesting accumulating rights to receive sick pay benefits. 13. Fund Equity Governments report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. At December 31, 2010, the Town reported $1,753,282 of restricted net assets which was comprised of $194,282 restricted for debt service payments and $1,559,000 restricted for emergencies (as subsequently explained in Notes III.E. and F.). Designations of fund balance represent tentative management plans that are subject to change. Designations of fund balance are reported only on fund financials and not on the government -wide financial statements. 14. Interfund Transactions Quasi - external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions, except quasi - external transactions and reimbursements, are reported as transfers. F. Significant Accounting Policies 1. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 6/7/201 D9 3 -1 -34 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) I. Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies (continued) 2. Proprietary Funds As required by GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, the Town has elected to follow for its proprietary funds, all (1) GASB pronouncements and (2) FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins issued on or before November 30, 1989, except those that conflict with a GASB pronouncement. 3. Credit Risk The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. 4. Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. II. Reconciliation of Government -wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets The governmental fund Balance Sheet includes reconciliation between the fund balance of total governmental funds and net assets of governmental activities as reported in the government -wide Statement of Net Assets. One element of that reconciliation explains "Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds ". This $92,696,881 difference is related to property, plant and equipment of $232,734,756 less accumulated depreciation of $140,037,875. Another element of that reconciliation explains "Other long -term assets and deferred charges are not available for current period expenditures and therefore are not reported in the funds ". This $1,062,445 difference is bond issue costs of $500,356, less accumulated amortization of $183,391, pension forfeitures of $531,431, deferred debt refunding cost of $32,081 and interest receivable of $181,968. Internal service funds used by management to charge the costs of heavy equipment and health insurance to individual funds totaling $6,732,297 are included in the governmental activities in the Statement of Net Assets. Additionally, the reconciliation states that long -term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. This $17,631,915 difference is related to bonds and notes payable of $16,250,000, accrued compensated absences of $1,242,419, premium on issued debt of $125,840 and interest payable of $13,656. 6/7/2011 D10 3 -I -35 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) II. Reconciliation of Government -wide and Fund Financial Statements (continued) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government -wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes reconciliation between net change in fund balances of governmental funds and changes in net assets of governmental activities as reported in the government - wide Statement of Activities. One element of that reconciliation explains "Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense." The details of this $957,393 difference are comprised of capital outlay of $11,752,238 plus donated art of $18,000, less depreciation expense of $9,915,640 and a loss on the sale of assets of $897,205. Another element of the reconciliation explains "Governmental funds report debt proceeds as a financing source. However, in the Statement of Net Assets, bond proceeds are shown as a liability." This $11,766,534 difference represents the bond proceeds of $11,940,000 and premium of $63,427 less bond issuance costs of $236,893. III. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town's Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund and the Dispatch Services Fund. The budgets for these funds have been adopted on a non - GAAP budget and are reconciled to GAAP below: Heavy Dispatch Equipment Services Fund Fund Change in Net Assets - Budget Basis $ ( 91,196) $ 241,885 add /(less): Change in compensated absences 4,623 (13,751) Capitalized assets 941,615 43,571 Depreciation (564,862) (226,655) Net book value of disposed assets (98,931) - Change in Net Assets - GAAP Basis $ 191,249 $ 45,050 6/7/2011 D11 3 -1 -36 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) Annual appropriations are adopted for all funds. Expenditures may not legally exceed appropriations at the fund level. All appropriations lapse at year -end. The Town followed these procedures in preparing, approving, and enacting its budget for 2010. (1) For the 2010 budget year, prior to August 25, 2009, the County Assessor sent the Town a certified assessed valuation of all taxable property within the Town's boundaries. (2) Prior to the end of the 2009 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2009, the Town computed and certified to the County Commissioners a levy rate that derived the necessary property taxes as computed in the proposed budget. (4) After a required publication of "Notice of Proposed Budget ", the Town adopted the proposed budget and an appropriation ordinance which legally appropriated expenditures for the upcoming year. (5) After adoption of the budget ordinance, the Town may make the following changes: a) transfer appropriated money between funds; b) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; c) approve emergency appropriations; and d) reduce appropriations for which originally estimated revenues are insufficient. Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2009 were collected in 2010 and taxes certified in 2010 will be collected in 2011. Taxes are due on January 1 st in the year of collection; however, they may be paid in either one installment (no later than April 30th) or two equal installments (not later than February 28th and June 15th) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1 %) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16th. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. B. Budgetary Information — Vail Local Marketing District The District's budget timetable varies from the Town's. The District followed these procedures in preparing, approving, and enacting its budget for 2010. (1) On or before September 30, 2009, the District must submit to the Board a recommended budget that details the revenues necessary to meet the District's operating requirements. This was done on September 15, 2009. 6/7/2011 D12 3 -I -37 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) III. Stewardship, Compliance, and Accountability (continued) B. Budgetary Information — Vail Local Marketing District (continued) (2) After appropriate public notice and a required public hearing, the Board must adopt the proposed budget and a resolution that legally appropriated expenditures for the upcoming year on or before December 5, 2009. The Board adopted the 2010 budget on October 6, 2009. (3) After adoption of the initial budget resolution, the District may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. C. Deficit Net Assets - Timber Ridge Affordable Housing Corporation The Corporation had a deficit of net assets at December 31, 2010 of $1,081,764. D. Compliance with Trust Indentures - Timber Ridge Affordable Housing Corporation The bond indenture for the Corporation's Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "2003A Bonds "), establishes initial funding of a bond reserve fund at $317,094 and required additional funding during 2004, but permits the trustee to release moneys in the bond reserve fund to the Corporation to pay operating and maintenance expenses of the Project. Due to the Trustee's release of funds pursuant to these provisions in 2003 and 2004 (without reimbursement by the Corporation), balances at December 31, 2008 in the Bond Reserve Fund for the 2003A Bonds were $380,077, less than the bond reserve requirement of $595,157. At December 31, 2010 the Corporation's balance in the Bond Reserve Fund was in compliance with the Bond Reserve Requirement established by the 2003A Indenture. As described in Note IV.K., the Reimbursement Agreement with U.S. Bank requires the Corporation to fund a Replacement Reserve in 2003 and annually thereafter. For 2010, the minimum funding required for the Replacement Reserve was met by the Corporation. The 2003A Indenture imposes financial ratios relating to debt service coverage. At December 31, 2010, the Corporation met the minimum required debt service coverage ratios under the terms of the 2003A Indenture 6/7/2011 D13 3 -I -38 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) III. Stewardship, Compliance, and Accountability (continued) E. TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights ( "TABOR "). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple - fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, or salary or fringe benefit increases. The reserve is calculated at 3% of fiscal year spending for fiscal years ending after December 31, 1995. Fiscal year spending excludes bonded debt service and enterprise spending. The Town has reserved a portion of the December 31, 2010 fund balance in the General Fund for this purpose in the amount of $1,500,000 which is the approximate required reserve. The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town's electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are: • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town debt; • No increase or imposition of a new real estate transfer tax; and, • All election requirements remain in effect. The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. 6/7/2011 D14 3 -I -39 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) III. Stewardship, Compliance, and Accountability (continued) F. TABOR Amendment — Vail Local Marketing District As required by TABOR, the District has reserved $59,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2010. The ballot question approved by voters on November 2, 1999, which established the 1.4% tax on lodging within the Town's boundaries also authorized the District to collect and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The District's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions will require judicial interpretation. IV. Detailed Notes on all Funds A. Cash and Investments Pursuant to its charter, the Town has adopted, by ordinance, an investment policy governing the types of institutions and investments with which it may deposit funds and transact business. Under this policy, the Town may invest in federally insured banks, debt obligations of the U.S. Government, its agencies and instrumentalities, governmental mutual funds and pools including 2a7 -like pools, and repurchase agreements subject to policy requirements. The Town also accounts for the operations of the employees' pension plans that are administered by select employees acting as trustees who are governed by a trust agreement. The trust agreement gives the trustees considerable latitude with investment alternatives. As a result, all pension investments are considered legal under the trust agreement. The Town's deposits and certificates of deposit are entirely covered by federal depository insurance (FDIC) or by collateral held under Colorado Public Deposit Protection Act ( "PDPA "). The FDIC insures the first $250,000 of the Town's interest bearing deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. As of year end, the bank balance of the Town's deposits was $4,318,817. 6/7/201 D15 3 -1 -40 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) At year end, the Town had the following investments and maturities: Carrying Type Rating Maturities Value Deposits: Cash on hand $ 10,585 Demand deposits 19,935,673 Certificates of deposit <1 year 1,679,216 Certificates of deposit <5 years 5,432,984 Total deposits $ 27,058,458 Investments: US Agencies - FHLMC, FHLB, FNMA AAA <5 years $ 10,241,740 Mortgage pools AAA N/A 1,929,712 Colotrust AAAm N/A 47,890,215 Pension and Section 457 investments N/A N/A 50,820,963 Total investments 110,882,630 Total deposits and investments $ 137,941,088 Reconciliation to Statement of Net Assets: Equity in pooled cash and investments $ 68,002,029 Cash and cash equivalents - Unrestricted 4,997,824 Cash and cash equivalents - Restricted 14,652,231 Fiduciary Funds 50,289,004 Total $ 137,941,088 Pools. The Town has invested in the Colorado Government Liquid Asset Trust ( "Colotrust "), which is an investment vehicle established for local government entities in Colorado to pool surplus funds. They operate similarly to a money market fund and each share is equal in value to $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor's. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk. The Town's general investment policy is to apply the prudent - person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. 6/7/2011 D16 3 -1 -41 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) Concentration of Credit Risk. The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments are as follows at year end: Investment Type Rating Percentage Colotrust AAAm 55% Investments in the Deferred Compensation Plan and the Pension Trust Funds are held by trustees and are not categorized because they are not evidenced by specific securities that exist in physical or book form. B. Receivables Receivables as of year -end for the Town's funds, including applicable allowances for uncollectible accounts, are as follows: Capital Real Estate Vail Vail Local General Projects Transfer Marketing Marketing Fund Fund Tax Fund Fund District Receivables: Property taxes $ 4,905,159 - - - Other taxes 155,541 3,047,282 50,064 437,273 Other governments 13,935 3,478,099 - 18,286 Employees 1,943 - - - Other 805,629 219,835 18,630 - Gross Receivables 5,882,207 6,745,216 68,694 455,559 Less: Allowance for uncollectibles (1,000) - - - Net Receivables $ 5,881,207 6,745,216 68,694 455,559 Vail Heavy Rein- Equip- Dispatch Health Timber vestment ment Services Insurance Ridge Authority Fund Fund Fund Total Receivables: Property taxes $ 4,905,159 Other taxes 3,690,160 Other governments 3,510,320 Employees 1,943 Other 13,809 10,523 12,755 140,815 1,221,996 Gross Receivables 13,809 10,523 12,755 140,815 13,329,578 Less: Allowance for uncollectibles - - - - (1,000) Net Receivables $ 13,809 10,523 12,755 140,815 13,328,578 6/7/2011 D17 3 -1 -42 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) B. Receivables (continued) Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Total deferred revenue for governmental activities totaled $5,397,736 and is comprised of the following: General Capital Project Property taxes assessed but not Fund Fund collectible until 2010: $ 4,905,159 $ - Other deferred revenues: Business licenses 46,522 - Library grants 47,717 - Police programs 24,219 - Construction projects - 374,119 $ 5,023,617 $ 374,119 Deferred revenue for construction projects relates to $205,319 of funds collected from Holy Cross Energy for the community enhancement fund which is used to place utilities underground. The other $168,800 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. C. Capital Assets The Governmental Accounting Standards Board Statement No. 34 (GASB -34) requires the capitalization of general infrastructure both prospectively and retroactively. Retroactive application requires governments to capitalize major infrastructure assets they acquired in the past 25 years or during fiscal years ending after June 30, 1980. Based on the Town's annual revenues, implementation was required by December 31, 2007. The Town is in compliance with GASB 34's infrastructure reporting requirements. During 2007, the Town added fully depreciated general infrastructure assets with an aggregate historical cost of $54,016,471 to the governmental activities Statement of Net Assets, in compliance with the infrastructure reporting requirements. Also during 2007, the Town increased its capital assets to reflect the inclusion of certain items previously omitted from the Town's capital asset listing. 6/7/201 D18 3 -1 -43 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Capital asset activity for the year ended December 31, 2010 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 28,222,590 350,261 28,572,851 Total Capital Assets, Not Being Depreciated 28,222,590 350,261 28,572,851 Capital Assets, Being Depreciated: Buildings and improvements 72,883,997 8,977,869 (972,035) 80,889,831 Infrastructure and improvements 102,800,458 1,631,037 104,431,495 Equipment and vehicles 27,403,780 1,752,686 (569,656) 28,586,810 Total Capital Assets Being Depreciated 203,088,235 12,361,592 (1,541,691) 213,908,136 Less Accumulated Depreciation For: Buildings and improvements (50,207,433) (2,700,024) 74,830 (52,832,627) Infrastructure and improvements (70,771,277) (5,250,240) - (76,021,517) Equipment and vehicles (15,435,231) (2,530,238) 470,725 (17,494,744) Total Accumulated Depreciation (136,413,941) (10,480,502) 545,555 (146,348,888) Total Capital Assets, Being Depreciated, Net 66,674,294 1,881,090 (996,136) 67,559,248 Governmental Activities Capital Assets, Net $ 94,896,884 2,231,351 (996,136) 96,132,099 Business -type Activities Capital Assets, Not Being Depreciated: Land $ 4,399,500 4,399,500 Total Capital Assets, Not Being Depreciated 4,399,500 4,399,500 Capital Assets, Being Depreciated: Buildings and improvements 15,592,145 - 15,592,145 Equipment 2,586,091 43,571 (151,962) 2,477,700 Total Capital Assets Being Depreciated 18,178,236 43,571 (151,962) 18,069,845 Less Accumulated Depreciation For: Buildings and improvements (3,367,394) (519,267) - (3,886,661) Equipment (1,644,476) (226,655) 151,962 (1,719,169) Total Accumulated Depreciation (5,011,870) (745,922) 151,962 (5,605,830) Total Capital Assets, Being Depreciated, Net 13,166,366 (702,351) - 12,464,015 Business -type Activities Capital Assets, Net $ 17,565,866 (702,351) 16,863,515 6/7/2011 D19 3 -1 -44 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Governmental Activities: General government $ 472,074 Public safety 376,033 Public works and transportation 8,380,485 Culture and recreation 1,251,910 Total Depreciation Expense - Governmental Activities $ 10,480,502 Business -type Activities: Dispatch services $ 226,655 Housing 519,267 Total Depreciation - Business -type Activities $ 745,922 Depreciation on fixed assets is recorded using the following estimated useful lives: Years Buildings 25-40 Building improvements 7-25 Infrastructure 5-30 Vehicles 5-15 Equipment 5-10 At December 31, 2010, the Town had $30,583,191 of fully depreciated assets. D. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. For accounting purposes, these leases are considered to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial statements. E. Interfund Receivables, Payables, and Transfers There were no interfund balances at December 31, 2010. During 2010, $3,742,673 was transferred from the General Fund to the Capital Projects Fund, including $3,659,000 toward construction of the West Vail Fire Station and $83,673 of Library grants used for purchase and installation of a self -check system. The Capital Projects Fund transferred $2,273,957 to the Debt Service Fund for annual debt service payments. The Vail Reinvestment Authority transferred $1,070,365 to the Capital Projects Fund for construction of the LionsHead Transit Center. 6/7/2011 D20 3 -1 -45 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) F. Long -term Liabilities - Governmental Activities The Town has the following long -term debt outstanding for governmental activities: 1. Sales Tax Revenue Refunding Bonds, Series 2002B The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1, 2002 (the "2002B Bonds "). Proceeds from the 2002B Bonds were used to refund outstanding 1992 bonds. The interest rate on the 2002B Bonds ranges from 2.5% to 4.0% and is payable on June 1 and December 1 annually through December 1, 2012. The 2002B Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 2002B Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues, on parity with the 1998 Bonds. 2002B Bonds maturing on or before December 1, 2011 are not subject to prior redemption. 2002B Bonds maturing on or after June 1, 2012 are subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2011 or thereafter, at a redemption price equal to the principal amount redeemed, plus a redemption premium equal to 1% of the principal redeemed, plus accrued interest to the redemption date. 2. Sales Tax Revenue Refunding Bonds, Series 2008 The Town issued $6,320,000 of Sales Tax Revenue Refunding Bonds dated December 1, 2008 (the "2008 Bonds "). Proceeds from the 2008 Bonds were used to refund outstanding 1998A bonds. The interest rate on the 2008 Bonds ranges from 3.5% to 4.0% and is payable on June 1 and December 1 annually through December 1, 2012. The 2008 Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 2008 Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues, on parity with the 1998 Bonds. The 2008 Bonds are not subject to redemption prior to maturity at the option of the Town. 6/7/2011 D21 3 -1 -46 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) F. Long -term Liabilities - Governmental Activities (continued) 3. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A The Authority issued $3,670,000 of Tax - Exempt Tax Increment Revenue Bonds dated November 4, 2010 (the "2010A Bonds "). Proceeds from the 2010A Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010A Bonds ranges from 2.5% to 4% and is payable June 1 and December 1 annually through June 1, 2018. The 2010A Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged property tax revenues. 2010A Bonds are not subject to redemption prior to maturity at the option of the Authority. 4. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B The Authority issued $8,270,000 of Taxable Tax Increment Revenue Bonds (Direct Pay Build America Bonds) dated November 4, 2010 (the "2010B Bonds "). Proceeds from the 2010B Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010B Bonds ranges from 5.269% to 6.659% and is payable June 1 and December 1 annually from June 1, 2011 through June 1, 2030. Principal payments are payable June 1 and December 1 annually from June 1, 2019 through June 1, 2030. The Authority will receive a federal subsidy known as the "BAB Credit" equal to 35% of corresponding interest as provided under the American Recovery and Reinvestment Act of 2009. The 2010B Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged incremental property tax revenues. 2010B Bonds maturing on or before June 1, 2020 are not subject to optional redemption prior to their respective maturity dates. The 2010B Bonds maturing on and after June 1, 2021 are subject to redemption prior to their respective maturity dates at the option of the Authority at a price equal to the principal amount plus accrued interest to the redemption date without a premium. All 2010B Bonds are subject to mandatory sinking fund redemption. 6/7/2011 D22 3 -1 -47 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) G. Long -term Liabilities - Business -type Activities The Town has the following long -term debt outstanding for business -type activities: 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A The 2003A Bonds were issued July 15, 2003 in the principal amount of $19,025,000 as limited obligations of the Corporation and not indebtedness of the Town. The 2003A Bonds are payable solely from the rents and other receipts from operation of the Project, net of the Project's actual operating expenses (the "Pledged Revenues ") and the various reserve funds and other monies pledged under the terms of the 2003A indenture. Certain capitalized terms are further described in the 2003A indenture. The 2003A Bonds bear interest at the Weekly Rate established by George K. Baum & Company (the "Remarketing Agent ") until converted to another "mode ", including a Fixed Rate, by the Corporation. While in any interest rate mode other than a Fixed Rate, the 2003A Bonds are subject to repurchase upon demand by any bondholder at 100% of the outstanding principal amount plus accrued interest. All tendered bonds are then to be subsequently remarketed by the Remarketing Agent. The 2003A Bonds are subject to redemption prior to maturity (December 1, 2032 or specific maturity date, if converted to Fixed Rate) at the Corporation's option, using monies in the Redemption Fund, as follows: • 2003A Bonds in a Daily Mode or Weekly Mode - on any date prior to Maturity at 100% of the principal amount, plus accrued interest. • 2003A Bonds in a Commercial Long -Term Mode - after the following No -Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No -Call Period Redemption Price Greater than 12 years 10 years from the Rate 101 %, declining 0.5% per Change Date 6 months to 100% Greater than 4 years, but Until 2 years prior to the 100% less than 12 years end of the Rate Period Less than or equal to Length of the Rate Period Not subject to optional 4 years redemption 6/7/2011 D23 3 -1 -48 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) G. Long -term Liabilities - Business -type Activities (continued) 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) • 2003A bearing a Fixed Rate - after the following No -Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No -Call Period Redemption Price Greater than 12 years 10 years from the 101 %, declining 0.5% per Conversion Date 6 months to 100% Greater than 4 years, but Until 2 years prior to 100% less than 12 years Maturity Less than or equal to Term to Maturity Not subject to optional 4 years redemption From the date of issuance through December 31, 2010, the 2003A Bonds have been in Weekly Mode, with interest rates set by the Remarketing Agent. Interest rates on the 2003A Bonds ranged from 0.23% to .35% per annum in 2010. At December 31, 2010, the interest rate on the 2003A Bonds was 0.26% per annum; however, the Corporation's effective interest rate has been limited to 4% through August 1, 2006 and 5.5% thereafter, as provided by the Rate Protection Agreement discussed in Note IV. K. Total interest expense for 2010 incurred in respect of the 2003A Bonds was $51,725. 2. Promissory Note - Town of Vail (the "Town Notes ") In connection with the Corporation's purchase of the Project, the Town advanced $1,000,000 to the Corporation upon execution of a promissory note. During 2005 and 2006, the Town made additional advances of $700,000 and $200,000, respectively, to the Corporation upon execution of additional promissory notes. At December 31, 2010, the balance outstanding under the terms of these promissory notes (collectively, the "Town Notes ") was $1,900,000. The Town Notes, which bear interest at the rate of 1.5% per annum, mature December 1, 2032. The Town Notes are payable solely from the Pledged Revenues, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds. 6/7/201 D24 3 -1 -49 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) G. Long -term Liabilities - Business -type Activities (continued) 2. Promissory Note - Town of Vail (the "Town Notes ") (continued) The Town Notes are payable to the extent that the Corporation has determined that excess net revenues of the Project, after provision for necessary operating or capital reserves, have accumulated semi - annually on the business day following debt service on the 2003B Bonds. The Town Notes may be repaid by the Corporation at any time without penalty. In the event that a shortfall arises in the Bond Reserve Funds (as defined in the 2003A Indenture) for the 2003A Bonds which is not cured within the prescribed deadlines by the Corporation, U.S. Bank National Association (the "Trustee ") will request that the Town replenish the deficient Bond Reserve Fund, and the Town has agreed to consider such requests but is not obligated to do so. Any funds advanced by the Town to replenish Bond Reserve Funds will be considered additional loans by the Town, subject to the same terms as the original Town Notes. The Town's failure to replenish any deficiency in the Bond Reserve Funds will not constitute an Event of Default (as defined in the 2003A Indenture) for the 2003A Bonds. The Corporation incurred interest expense totaling $28,500 during 2010 in respect of the Town Notes. At December 31, 2010, the Corporation had accrued a total of $181,968 in interest payable to the Town under the terms of the Town Notes. H. Long -term Liabilities - Compensated Absences The Town has a policy allowing the accumulation of paid vacation and sick leave, subject to certain maximum limits. In accordance with GAAP, the Town's approximate liability for vacation pay earned by employees and longevity pay at December 31, 2010 has been reflected in the proprietary type fund financial statements and in the governmental activities column of the government -wide financial statements. Accumulated sick pay of approximately $3,006,037 at December 31, 2010 has not been reflected in the Town's financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I. Long -term Liabilities — Refunded In prior years, the town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the town until retired; however, they are not included for the purposes of calculating debt limits of the town. The amount of debt considered defeased cannot be readily determined as of December 31, 2010. 6/7/201 D25 3 -1 -50 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) J. Long -term Liabilities - Activity and Debt Service Schedules Long -term liability activity for the year ended December 31, 2010 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Tax - Exempt Refunding Bonds, Series 2008 $ 4,800,000 (1,540,000) 3,260,000 1,600,000 Deferred amounts: Issuance premium 123,303 (60,890) 62,413 - Cost of refunding (63,380) 31,299 (32,081) - Refunding Bonds, Series 2002B 1,545,000 (495,000) 1,050,000 515,000 Tax- Increment Bonds, Series 2010A - 3,670,000 3,670,000 250,000 Tax- Increment Bonds, Series 2010B 8,270,000 8,270,000 - Deferred amounts: Issuance premium - 63,427 63,427 - Compensated absences 1,292,054 4,810 1,296,864 518,746 Total Governmental Activities Long -term Liabilities $ 7,696,977 $ 12,008,237 $ (2,064,591) $ 17,640,623 $ 2,883,746 Business -type Activities: Housing Facilities Revenue Bonds: Adjustable Rate, Series 2003A $ 18,620,000 - (430,000) 18,190,000 450,000 Promissory note 1,900,000 - 1,900,000 - Compensated absences 72,029 13,750 85,780 34,312 Total Business -type Activities Long -term Liabilities $ 20,592,029 13,750 (430,000) 20,175,780 484,312 6/7/2011 D26 3 -1 -51 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) J. Long -term Liabilities - Activity and Debt Service Schedules (continued) Debt service requirements at December 31, 2010 were as follows: Principal Interest Total Governmental Activities: 2011 $ 2,365,000 842,356 3,207,356 2012 2,640,000 701,053 3,341,053 2013 460,000 605,203 1,065,203 2014 475,000 591,178 1,066,178 2015 490,000 577,928 1,067,928 2016 -2020 2,680,000 2,612,529 5,292,529 2021 -2025 3,210,000 1,810,703 5,020,703 2026 -2030 3,930,000 676,887 4,606,887 Total Governmental Activities $ 16,250,000 8,417,837 24,667,837 Business -type Activities: 2011 $ 450,000 59,904 509,904 2012 475,000 58,412 533,412 2013 500,000 56,837 556,837 2014 530,000 55,179 585,179 2015 560,000 53,422 613,422 2016 -2020 3,265,000 237,330 3,502,330 2021 -2025 4,250,000 176,999 4,426,999 2026 -2030 5,520,000 98,621 5,618,621 2031 -2032 4,540,000 639,458 5,179,458 Total Business -type Activities $ 20,090,000 1,436,162 21,526,162 General obligation bonds issued for governmental activity purposes are liquidated by the Debt Service Fund, whereas general obligation bonds issued for component unit purposes are liquidated by the component unit. Included in debt service requirements for business -type activities above are principal and interest payments due to the Town in the amounts of $1,900,000 and $627,000 respectively. K. Credit Facility and Reimbursement Agreement - Timber Ridge Affordable Housing Corporation Certain capitalized terms are defined in the 2003A Bonds Indenture. In connection with the issuance of the 2003A Bonds, an irrevocable, stand -by, direct pay letter of credit (the "Credit Facility ") in the amount of $19,207,432 was established July 17, 2003 by U.S. Bank, National Association ( "U.S. Bank ") in favor of the Trustee for the 2003A Bonds. Under the terms of the Credit Facility, up to $19,025,000 may be drawn to pay principal amounts of the 2003A Bonds, and up to $182,432 may be drawn to pay up to 35 days' accrued interest on the 2003A Bonds at a maximum rate of 10% per annum. Available credit under the Credit Facility will be permanently and proportionately reduced upon notice from the Trustee of redemption of less than all of the 2003A Bonds. 6/7/2011 D27 3 -1 -52 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement — Timber Ridge Affordable Housing Corporation (continued) The Credit Facility expires at the earlier of: a. July 17, 2008, although it automatically renews for successive one -year terms (unless U.S. Bank notifies the Trustee that the Credit Facility has not been renewed); b. 15 days following notice by U.S. Bank requiring payment of all outstanding 2003A Bonds due to Default; C. The date of acceleration or redemption of all 2003A Bonds; d. The second business day after conversion of the 2003A Bonds to a Fixed Mode interest rate; or e. The date of surrender of the Credit Facility for cancellation, as required by the Indenture. Concurrent with the Credit Facility, the Corporation executed a Reimbursement Agreement and a Demand Note in favor of U.S. Bank, evidencing the Corporation's obligation to repay all advances under the Credit Facility, together with interest on all such draws. All amounts drawn on or charged against the Credit Facility bear interest at the Bank Rate, which is equal to U.S. Bank's Prime Rate plus 200 Basis Points. The Credit Facility automatically renews each year, subject to the Corporation's compliance with requirements as to operational performance of the Corporation, provision of certain records to the Trustee, and payment of all fees (including annual stand -by fees equal to 125 Basis Points calculated on the original credit commitment, plus U.S. Bank's standard fees and charges for processing draws on the Credit Facility). Pursuant to this arrangement, the Corporation incurred financing fees during 2010 totaling $238,458 for U.S. Bank in respect of stand -by fees for the Credit Facility. During 2003, U.S. Bank was paid a one -time origination fee of $192,074 from the proceeds on issuance of the 2003A Bonds, which has been capitalized as Bond Issue Costs. During 2010, the Corporation drew and repaid $52,668 of advances on the Credit Facility. At December 31, 2010, no balance was outstanding on the Credit Facility. The Reimbursement Agreement imposes the following funding commitments on the Corporation: a. Commencing January 1, 2009, the Corporation is to deposit into the Bond Principal Fund an amount equal to 1/12 of the scheduled principal reductions for the 2003A Bonds, to be used by the Trustee to pay for optional redemptions as provided in the 2003A Indenture. b. $90,000 was paid from the proceeds of issuance of the 2003A Bonds into a Replacement Reserve account. Annually thereafter, the Corporation is to deposit an equal amount increased by 3% per annum into the Replacement Reserve account, with usage of such funds restricted to capital improvements to the Project approved by U.S. Bank. The Replacement Reserve Account is pledged to U.S. Bank and not the owners of the 2003A Bonds. C. The Corporation is required to deposit all security deposits received from tenants of the Project into a separate account. d. Commencing August 1, 2004 and annually thereafter, the Corporation is to deposit into a Rate Cap Escrow Account an amount not less than $45,000, to be used only to pay for required rate protection agreements. 6/7/2011 D28 3 -I -53 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement - Timber Ridge Affordable Housing Corporation (continued) As required by the Reimbursement Agreement and for as long as the Credit Facility is outstanding, the Corporation is required to have in effect a rate protection agreement at a fixed interest rate acceptable to U.S. Bank in an amount equal to the then - outstanding principal amount of the Credit Facility, with a floating rate payer acceptable to U.S. Bank. The Corporation's rate protection agreement is subsequently described. V. Other Information A. Pension Plans The Town offers two defined contribution pension plans to cover all permanent paid employees of the Town. The Town established these qualified money purchase pension plans under Internal Revenue Code section 401(a), and may amend all of the plan provisions. The first plan covers all full time and qualified seasonal employees other than sworn police officers and firefighters; the second plan covers all full time and qualified seasonal employees of the Town's Police and Fire departments. The plan provisions are the same for both plans. In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long -term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100 %. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100 %. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5 %. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. 6/7/2011 D29 3 -1 -54 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) V. Other Information (continued) A. Pension Plans (continued) The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2010 of $42,018,929 are stated at market value. All earnings, losses, expenses and changes in the fair market value of the trust fund will be apportioned at least annually among the participants in proportion to each participant's current share of the Trust Investment Fund. The Town has no liability for unfunded future vested employee benefits. The trustees and administrators of the plans are the Retirement Board. The Retirement Board determines investment options made available to participants, in adherence with an adopted investment policy statement. The total amount of the Town's 2010 covered payroll was $15,128,416 of which $13,208,009 was for permanent employees and $1,920,407 was for seasonal staff. Total 2010 payroll for all Town employees was $16,030,441. B. Retirement Savings Plan - Deferred Compensation Plan - IRC 457 The Town offers its employees a deferred compensation plan (the "457 Plan ") created in accordance with Internal Revenue Code section 457. The 457 Plan, available to all Town employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. The modified accrual basis of accounting is used for the 457 Plan. The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town's administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. The total assets of the 457 Plan were $8,270,075 at December 31, 2010. The assets were invested in mutual funds, as previously described. Pursuant to the Town's adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. 6/7/2011 D30 3 -I -55 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) V. Other Information (continued) D. Risk Management The Town is exposed to various risks of loss related to workers compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. E. Commitments and Contingencies 1. Legal Claims During the normal course of business, the Town may incur claims and other assertions against it from various agencies and individuals. Management of the Town and their legal representatives feel none of these claims or assertions are significant enough that they would materially affect the fairness of the presentation of the financial statements at December 31, 2010. 2. Federal Funds Funds received from Federal grants and programs are subject to audit and disallowance on ineligible costs. Management of the Town feels any potential questioned or disallowed costs would not materially affect the fairness of the presentation of the financial statements at December 31, 2010. F. Rate Protection Agreement - Timber Ridge Affordable Housing Corporation In connection with the issuance of the 2003A Bonds and as required by the Reimbursement Agreement, the Corporation entered into rate protection agreements which limit the Corporation's interest payable on the 2003A Bonds for specific periods. Fees paid by the Corporation under these arrangements have been capitalized as Bond Issue Costs. Effective April 30, 2008, the Corporation's existing Rate Protection Agreement with SMBC Derivative Products Limited ( "SMBC ") was revised in that SMBC agreed to limit the Corporation's interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2010. SMBC was paid a fee of $14,650 in 2008 for this service, which has been capitalized as Bond Issue Costs. Effective May 5, 2010, the Corporation entered into a Rate Protection Agreement with U.S. Bank National Association ( "U.S. Bank ") whereby U.S. Bank agreed to limit the Corporation's interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2011. During 2010, U.S. Bank was paid a $4,000 fee for its services under the Rate Protection Agreement, which has been capitalized as Bond Issue Costs. During 2010, the Corporation did not receive a reimbursement under the rate protection agreement, as the Corporation's interest rate payable on the 2003A Bonds was less than 5.5% per annum. 6/7/2011 D31 3 -1 -56 Town of Vail, Colorado Notes to the Financial Statements December 31, 2010 (Continued) V. Other Information (continued) G. Related Party Transactions - Vail Local Marketing District The District has executed a Coordination Agreement with Vail Valley Partnership ( "VVP ") under which VVP provides some marketing coordination services to the District in return for a fixed fee. The District paid VVP $40,000 for its services in 2010. The Coordination Agreement also requires the District to pay a fixed fee to the Town for accounting services and marketing coordination provided by the Town. Fees totaling $20,000 for accounting services and $85,000 for marketing coordination were incurred by the District during 2010 from the Town. H. Conduit Debt - Town of Vail, Colorado Multifamily Housing Revenue Bonds (Middle Creek Village Apartments Project), Series 2003A, 2003B and 2003 -T These bonds were issued in 2003 in an aggregate principal amount of $16,850,000 to finance construction of multi - family housing projects within the Town. The bonds mature in 2038. The bonds are solely payable from, and are secured by, a pledge of revenue from loan agreements between the Town and Middle Creek Village, LLC (as borrower). The borrower's obligation is secured by Deeds of Trust, Security Agreements, Financing Statements and assignment of rents and leases. The bonds are a special limited obligation of the Town, payable solely from the specified revenues of the projects, and do not constitute debt or indebtedness of the Town. 6/7/2011 D32 3 -I -57 REQUIRED SUPPLEMENTARY INFORMATION 6/7/2011 3 -1 -58 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: General sales taxes 10,126,000 10,143,624 10,143,624 8,760,000 Property and ownership taxes 5,013,647 5,013,647 4,951,386 (62,261) 4,506,491 Ski area lift ticket admissions tax 3,115,000 3,115,000 3,357,717 242,717 3,048,011 Franchise tax 1,015,065 1,015,065 1,023,398 8,333 908,577 Penalties and interest on delinquent taxes 41,061 59,499 17,027 (42,472) 35,507 Total - Taxes 19,310,773 19,346,835 19,493,152 146,317 17,258,586 Permits and Licenses: Construction fees 673,250 1,148,250 1,272,606 124,356 1,341,730 Contractors' licenses 15,000 15,000 34,983 19,983 40,445 Other permits and licenses 43,950 43,950 79,748 35,798 58,797 Total - Permits and Licenses 732,200 1,207,200 1,387,337 180,137 1,440,972 Intergovernmental: County sales tax 531,200 531,200 546,335 15,135 518,859 County road and bridge 500,000 850,000 851,934 1,934 737,236 Additional motor vehicle registration fees 24,000 24,000 25,300 1,300 25,509 Cigarette tax 80,000 80,000 72,745 (7,255) 74,651 Highway users tax 200,000 200,000 215,036 15,036 189,280 State health inspection 9,800 9,800 11,787 1,987 11,493 Other state sources - 9,378 10,758 1,380 32,405 Federal sources 199,000 222,830 195,226 (27,604) 22,137 Total - Intergovernmental 1,544,000 1,927,208 1,929,121 1,913 1,611,570 Charges for Services: Management fees - Vail Local Marketing District 95,950 95,950 105,000 9,050 95,000 Internal service charge 390,275 447,268 496,555 49,287 276,626 Out of district fire response 50,000 50,000 36,798 (13,202) 36,179 Alarm monitoring fees 35,000 35,000 28,127 (6,873) 28,506 Parking 5,432,744 4,932,744 5,037,042 104,298 4,975,795 Fines and forfeitures 260,000 260,000 271,561 11,561 330,660 Rents 882,796 882,796 862,151 (20,645) 912,091 Other charges, services, and sales 153,550 171,550 209,147 37,597 281,342 Total - Charges for Services 7,300,315 6,875,308 7,046,381 171,073 6,936,199 Other Revenues: Earnings on investments 115,000 115,000 119,049 4,049 170,353 Other 92,800 407,800 386,271 (21,529) 243,991 Total - Other Revenues 207,800 522,800 505,320 (17,480) 414,344 Total Revenues 29,095,088 29,879,351 30,361,311 481,960 27,661,671 The accompanying notes a6 "Id kegral part of these financial statements. E1 3 -I -59 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 (Continued) 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Expenditures: General Government: Town officials 1,234,126 1,275,713 1,162,640 113,073 1,161,906 Administrative 3,350,484 3,339,574 3,043,095 296,479 2,986,758 Community development 1,847,525 2,015,361 1,722,407 292,954 1,888,707 Employee home ownership program 240,000 - - - 232,301 Total - General Government 6,672,135 6,630,648 5,928,142 702,506 6,269,672 Public Safety: Police department 5,109,329 5,156,235 4,802,283 353,952 5,036,210 Fire department 2,869,190 2,913,778 2,817,132 96,646 2,717,947 Total - Public Safety 7,978,519 8,070,013 7,619,415 450,598 7,754,157 Public Works and Transportation: Highways and streets 3,649,854 3,657,039 3,530,332 126,707 3,357,816 Transportation 3,698,956 3,698,956 3,569,718 129,238 3,550,661 Parking operations 1,002,364 1,022,364 925,925 96,439 908,262 Facility maintenance 3,708,084 3,688,084 3,178,278 509,806 3,158,359 Total - Public Works and Transportation 12,059,258 12,066,443 11,204,253 862,190 10,975,098 Culture and Recreation: Contributions, marketing and special events 1,415,886 1,475,886 1,471,156 4,730 1,515,625 Special recreation facilities 164,171 164,171 137,518 26,653 150,239 Library 805,119 806,193 794,879 11,314 808,649 Total - Culture and Recreation 2,385,176 2,446,250 2,403,553 42,697 2,474,513 Total Expenditures 29,095,088 29,213,354 27,155,363 2,057,991 27,473,440 Excess of Revenues Over Expenditures - 665,997 3,205,948 2,539,951 188,231 Other Financing Sources (Uses): Transfers out (3,659,000) (3,749,000) (3,742,673) 6,327 - Total Other Financing Sources (Uses) (3,659,000) (3,749,000) (3,742,673) 6,327 - Net Change in Fund Balances (3,659,000) (3,083,003) (536,725) 2,546,278 188,231 Reconciliation to GAAP Basis Investment in employee home ownership program - 232,301 Net Change in Fund Balances - GAAP Basis (3,659,000) (3,083,003) (536,725) 2,546,278 420,532 Fund Balances - January 1 22,289,811 23,423,417 23,423,417 - 23,002,885 Fund Balances - December 31 18,630,811 20,340,414 22,886,692 2,546,278 23,423,417 The accompanying notes a6 "Id kegral part of these financial statements. E2 3 -1 -60 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax 6,474,000 6,474,000 7,712,020 1,238,020 8,251,795 Construction use tax 500,000 1,050,000 1,103,118 53,118 713,582 Total - Taxes 6,974,000 7,524,000 8,815,138 1,291,138 8,965,377 Intergovernmental: State grants - - - - 24,000 Federal grants 2,508,015 5,028,500 3,576,818 (1,451,682) Total - Intergovernmental 2,508,015 5,028,500 3,576,818 (1,451,682) 24,000 Charges for Services: Leases - Vail Commons 184,500 184,500 183,170 (1,330) 201,450 Resale fees - - 27,398 27,398 18,013 Total - Charges for Services 184,500 184,500 210,568 26,068 219,463 Other: Interest on investments 18,000 18,000 60,377 42,377 68,308 Project reimbursements /shared costs - 730,100 782,522 52,422 246,858 Construction fees - 825,000 831,764 6,764 72,425 Workforce housing sales and other 775,000 816,000 816,631 631 300 Total - Other 793,000 2,389,100 2,491,294 102,194 387,891 Total Revenues 10,459,515 15,126,100 15,093,818 (32,282) 9,596,731 Expenditures: Public Works: Capital projects and acquisition 9,625,239 22,186,677 11,507,388 10,679,289 5,078,886 Excess (Deficiency) of Revenues Over Expenditures 834,276 (7,060,577) 3,586,430 10,647,007 4,517,845 Other Financing Sources (Uses): Sale of assets - - 600 600 17,984 Transfers in 3,659,000 4,943,681 4,813,038 (130,643) - Transfers (out) (4,753,474) (2,273,959) (2,273,957) (2) (2,289,492) Total Other Financing Sources (Uses) (1,094,474) 2,669,722 2,539,681 (130,045) (2,271,508) Net Change in Fund Balances (260,198) (4,390,855) 6,126,111 10,516,962 2,246,337 Fund Balances - January 1 13,153,206 13,153,206 13,153,206 - 10,906,869 Fund Balances - December 31 12,893,008 8,762,351 19,279,317 10,516,962 13,153,206 The accompanying notes arq / "Otggral part of these financial statements. E3 3 -1 -61 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Real estate transfer tax 4,283,000 6,083,000 6,950,702 867,702 2,513,481 Intergovernmental Revenue: Lottery revenue 20,000 20,000 21,724 1,724 22,958 Other county revenue - - 6,324 6,324 - Other State revenue 9,000 5,379 (3,621) - Other Federal grants - 14,324 13,100 (1,224) 157,628 Total - Intergovernmental Revenue 20,000 43,324 46,527 3,203 180,586 Charges for Services: Recreation amenities fee 10,000 10,000 39,181 29,181 72,308 Land lease to Vail Recreation District 122,000 122,000 126,768 4,768 126,768 Total - Charges for Services 132,000 132,000 165,949 33,949 199,076 Other: Project reimbursements - 87,000 72,902 (14,098) 53,777 Donations - - 33,075 33,075 2,500 Interest on investments 40,402 40,402 81,801 41,399 121,598 Other - - 8,506 8,506 12,052 Total - Other 40,402 127,402 196,284 68,882 189,927 Total Revenues 4,475,402 6,385,726 7,359,462 973,736 3,083,070 Expenditures: Culture and Recreation: Project management 214,150 304,150 347,534 (43,384) 123,180 Park maintenance 1,323,478 1,333,114 1,198,869 134,245 1,145,481 Environmental sustainability 214,905 214,905 178,431 36,474 205,379 Art in public places 85,157 85,157 94,072 (8,915) 81,861 Public Works: Capital projects 2,152,215 5,626,462 1,870,194 3,756,268 4,409,045 Intergovernmental financing - Vail Recreation District - - - - 1,600,000 Public Safety Fire suppression 265,000 265,000 206,154 58,846 189,442 Total Expenditures 4,254,905 7,828,788 3,895,254 3,933,534 7,754,388 Excess (Deficiency) of Revenues Over Expenditures 220,497 (1,443,062) 3,464,208 4,907,270 (4,671,318) Net Change in Fund Balances 220,497 (1,443,062) 3,464,208 4,907,270 (4,671,318) Reconciliation to GAAP Basis: Intergovernmental financing - Vail Recreation District - - - - 1,600,000 Fund Balances - January 1 8,401,403 13,188,947 14,216,947 1,028,000 17,288,265 Fund Balances - December 31 8,621,900 11,745,885 17,681,155 5,935,270 14,216,947 The accompanying notes arq/ i0tggral part of these financial statements. E4 3 -1 -62 Town of Vail, Colorado Special Revenue Funds Conference Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Original and Variance Final Positive Budget Actual (Negative) Actual Revenues: Interest on investments 46,500 40,350 (6,150) 60,178 Total Revenues 46,500 40,350 (6,150) 60,178 Expenditures: Economic Development - - - TotalExpenditures - Net Change in Fund Balances 46,500 40,350 (6,150) 60,178 Fund Balances - January 1 9,324,654 9,324,654 - 9,264,476 Fund Balances - December 31 9,371,154 9,365,004 (6,150) 9,324,654 The accompanying notes Wp7nipjegral part of these financial statements. E5 3 -1 -63 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Permits and Licenses: Business licenses 312,000 317,500 314,452 (3,048) 317,190 Other: Interest on investments - - 1,083 1,083 1,215 Total Revenues 312,000 317,500 315,535 (1,965) 318,405 Expenditures: Economic Development: Commission on Special Events 280,000 280,000 268,000 12,000 280,000 Administration fee 15,600 16,100 15,723 377 15,681 Total Expenditures 295,600 296,100 283,723 12,377 295,681 Excess (Deficiency) of Revenues Over Expenditures 16,400 21,400 31,812 10,412 22,724 Fund Balances - January 1 100,169 106,359 106,359 - 83,635 Fund Balances - December 31 116,569 127,759 138,171 10,412 106,359 The accompanying notes arq/ iOtggral part of these financial statements. E6 3 -1 -64 Town of Vail, Colorado Special Revenue Funds Vail Local Marketing District Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Lodging tax 1,745,000 1,745,000 1,954,713 209,713 1,706,008 Other: Interest on investments 6,025 6,025 1,084 (4,941) 4,222 Miscellaneous - - - 566 Total - Other 6,025 6,025 1,084 (4,941) 4,788 Total Revenues 1,751,025 1,751,025 1,955,797 204,772 1,710,796 Expenditures: Economic Development: Destination 228,725 228,725 180,008 48,717 283,215 Front Range 351,000 351,000 256,948 94,052 502,340 Groups and meetings 315,000 315,000 274,482 40,518 339,485 Marketing 396,975 396,975 508,625 (111,650) 537,289 Purchased services 453,300 453,300 453,300 - 502,125 Total Expenditures 1,745,000 1,745,000 1,673,363 71,637 2,164,454 Excess (Deficiency) of Revenues Over Expenditures 6,025 6,025 282,434 276,409 (453,658) Fund Balances - January 1 411,262 572,930 572,930 - 1,026,588 Fund Balances - December 31 417,287 578,955 855,364 276,409 572,930 The accompanying notes arq/ iOtggral part of these financial statements. E7 3 -1 -65 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Other: Property tax 2,432,000 2,432,000 2,370,229 (61,771) 1,983,159 Interest on investments - 10,000 3,971 (6,029) 26,705 Shared costs /project reimbursements - - - - Total Revenues 2,432,000 2,442,000 2,374,200 (67,800) 2,009,864 Expenditures: Economic Development: Administration 41,120 41,120 39,906 1,214 34,195 Office supplies - - - - 162 Treasurer's fees 72,960 72,960 71,113 1,847 59,495 Professional fees 25,000 25,000 - 25,000 9,669 Vail Square Metro District 364,720 364,720 365,558 (838) 265,186 Capital Outlay - 4,170 1,859 2,311 337,536 Total Expenditures 503,800 507,970 478,436 29,534 706,243 Excess (Deficiency) of Revenues Over Expenditures 1,928,200 1,934,030 1,895,764 (38,266) 1,303,621 Other Financing Sources (Uses): Debt proceeds - 12,000,000 11,940,000 (60,000) - Issuance costs (250,000) (236,893) 13,107 Issuance premium - 63,427 63,427 Transfers in 2,479,515 - - Transfers out - (1,194,681) (1,070,365) 124,316 - Total Other Financing Sources (Uses) 2,479,515 10,555,319 10,696,169 140,850 - Net Change in Fund Balances 4,407,715 12,489,349 12,591,933 102,584 1,303,621 Fund Balances - January 1 2,519,601 2,637,172 2,637,172 - 1,333,551 Fund Balances - December 31 6,927,316 15,126,521 15,229,105 102,584 2,637,172 The accompanying notes arq / "Otggral part of these financial statements. E8 3 -t -66 SUPPLEMENTARY INFORMATION 6/7/2011 3 -1 -67 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Other: Interest on investments 4,728 4,728 5,847 Total Revenues - - 4,728 4,728 5,847 Expenditures: Debt Service: Principal 2,035,000 2,035,000 2,035,000 - 1,980,000 Interest 359,412 238,331 238,331 - 296,295 Fiscal agent fees 4,000 4,000 500 3,500 3,950 Total Expenditures 2,398,412 2,277,331 2,273,831 3,500 2,280,245 (Deficiency) of Revenues Over Expenditures (2,398,412) (2,277,331) (2,269,103) 8,228 (2,274,398) Other Financing Sources: Transfers in 2,273,959 2,273,959 2,273,957 (2) 2,289,492 Total Other Financing Sources (Uses 2,273,959 2,273,959 2,273,957 (2) 2,289,492 Net Change in Fund Balances (124,453) (3,372) 4,854 8,226 15,094 Fund Balances - January 1 189,210 189,428 189,428 - 174,334 Fund Balances - December 31 64,757 186,056 194,282 8,226 189,428 The accompanying notes arq/ i0tggral part of these financial statements. F1 3 -t -68 Town of Vail, Colorado Enterprise Fund Timber Ridge Affordable Housing Corporation Schedule of Revenues, Expenses, and Changes in Fund Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Rent 2,610,684 2,272,809 2,286,910 14,101 2,997,361 Laundry room lease 32,360 32,360 17,607 (14,753) 19,740 Other 300 300 6,763 6,463 6,121 Total Operating Revenues 2,643,344 2,305,469 2,311,280 5,811 3,023,222 Operating Expenses: Advertising 4,500 4,560 7,627 (3,067) 2,477 Office expenses 11,720 14,132 12,975 1,157 14,313 Management fee 90,000 90,000 90,000 - 90,000 Telecommunications 6,360 6,360 7,246 (886) 7,662 Wages - Administrative 59,400 59,400 77,458 (18,058) 47,584 Wages - Maintenance and other 130,428 130,428 120,898 9,530 118,796 Repairs and maintenance 132,504 132,579 81,413 51,166 54,873 Electric 19,600 32,300 44,663 (12,363) 24,766 Water and sewer 130,000 130,000 125,611 4,389 112,629 Trash removal 26,400 26,400 18,256 8,144 19,745 Snow removal 52,400 52,400 30,952 21,448 28,343 Fire, life, safety, and security 4,050 4,050 2,478 1,572 4,075 Property insurance 64,464 65,809 65,810 (1) 78,684 Professional fees 8,250 8,500 8,250 250 8,250 Bad debt expense - - (750) 750 1,155 Miscellaneous 2,900 2,900 2,101 799 3,414 Capital maintenance and replacement 200,000 200,000 46,491 153,509 210,149 Depreciation 519,996 519,264 519,267 (3) 519,267 Total Operating Expenses 1,462,972 1,479,082 1,260,746 218,336 1,346,182 Operating Income (Loss) 1,180,372 826,387 1,050,534 224,147 1,677,040 Non - operating Revenues (Expenses): Interest on investments 19,464 19,464 9,416 (10,048) 18,308 Interest expense (866,500) (866,500) (80,225) 786,275 (223,607) Financing fees (267,268) (273,853) (267,793) 6,060 (274,720) Amortization of bond issue costs (42,348) (43,116) (39,121) 3,995 (42,349) Total Non - operating Revenue (Expenses) (1,156,652) (1,164,005) (377,723) 786,282 (522,368) Change in Net Assets 23,720 (337,618) 672,811 1,010,429 1,154,672 The accompanying notes arq/ iOtggral part of these financial statements. F2 3 -1 -69 Town of Vail, Colorado Enterprise Fund Dispatch Services Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets Budget (Non -GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Dispatch service fee 522,213 522,213 520,411 (1,802) 539,763 Dispatching contracts 1,162,231 1,162,231 1,158,151 (4,080) 1,150,659 Other charges - 3,000 15,741 12,741 76,330 Total Operating Revenues 1,684,444 1,687,444 1,694,303 6,859 1,766,752 Operating Expenses: Public Safety: Salaries and benefits 1,854,062 1,854,062 1,702,928 151,134 1,691,378 Operating expenses 511,633 514,633 463,094 51,539 441,695 Capital outlay 50,000 123,000 43,571 79,429 69,731 Total Operating Expenses 2,415,695 2,491,695 2,209,593 282,102 2,202,804 Operating (Loss) - Budget Basis (731,251) (804,251) (515,290) 288,961 (436,052) Non - operating Revenues: Operating grant - E -911 Board 754,108 754,108 750,440 (3,668) 753,913 Proceeds from sale of assets - - - - 2,530 Earnings on investments 5,000 5,000 6,735 1,735 7,946 Total Non - operating Revenues 759,108 759,108 757,175 (1,933) 764,389 Change in Net Assets - Budget Basis 27,857 (45,143) 241,885 287,028 328,337 Reconciliation to GAAP Basis: Adjustments: Change in compensated absences (13,751) (6,270) Depreciation (226,655) (227,026) Capitalized assets 43,571 69,731 Total Adjustments (196,835) (163,565) Change in Net Assets - GAAP Basis 45,050 164,772 The accompanying notes arq/ iOtggral part of these financial statements. F3 3 -1 -70 Town of Vail, Colorado Internal Service Funds Heavy Equipment Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets Budget (Non -GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Operating charges 2,131,542 2,131,542 2,072,053 (59,489) 1,977,610 Replacement charges 704,922 704,922 717,336 12,414 659,078 Total - Charges and Fees 2,836,464 2,836,464 2,789,389 (47,075) 2,636,688 Other: Insurance reimbursements - 29,660 29,660 81,461 Other 16,712 16,712 43,234 Total- Other - 46,372 46,372 124,695 Total Operating Revenues 2,836,464 2,836,464 2,835,761 (703) 2,761,383 Operating Expenses: Public Works: Vehicle maintenance and fuel 2,210,823 2,210,823 2,117,235 93,588 1,961,009 Capital outlay 784,500 1,082,928 941,615 141,313 612,152 Total Operating Expenses 2,995,323 3,293,751 3,058,850 234,901 2,573,161 Operating Income (Loss) - Budget Basis (158,859) (457,287) (223,089) 234,198 188,222 Non - operating Revenues: Earnings on investments 10,298 10,298 10,159 (139) 14,323 Proceeds from sale of assets 123,240 168,240 121,734 (46,506) 77,238 Total Non- operating Revenues: 133,538 178,538 131,893 (46,645) 91,561 Change in Net Assets - Budget Basis (25,321) (278,749) (91,196) 187,553 279,783 Reconciliation to GAAP Basis: Adjustments: Contribution from Capital Projects Fund 56,000 Net book value of disposed assets (98,931) (1,988) Depreciation (564, 862) (573, 745) Change in accrued compensated absences 4,623 (2,009) Capitalized assets 941,615 612,152 Total Adjustments 282,445 90,410 Change in Net Assets - GAAP Basis 191,249 370,193 The accompanying notes ar,9/ i0tggral part of these financial statements. F4 3 -I -71 Town of Vail, Colorado Internal Service Funds Health Insurance Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Insurance premiums 2,510,000 2,522,000 2,540,066 18,066 2,512,230 Insurance premiums - Employee contributions 305,000 336,000 353,022 17,022 263,196 I nsurer proceeds 100,000 685,000 680,429 (4,571) 365,165 Total Operating Revenues 2,915,000 3,543,000 3,573,517 30,517 3,140,591 Operating Expenses: General Government: Health claims 2,650,000 3,395,000 3,278,644 116,356 2,903,459 Premiums 365,000 365,000 367,094 (2,094) 321,081 Administrative fees 20,000 20,000 20,000 - 20,000 Short -term disability payments 35,000 35,000 35,758 (758) 24,811 Total Operating Expenses 3,070,000 3,815,000 3,701,496 113,504 3,269,351 Operating Income (Loss) (155,000) (272,000) (127,979) 144,021 (128,760) Non - operating Revenues: Earnings on investments 5,000 5,000 5,934 934 10,465 Change in Net Assets - GAAP Basis (150,000) (267,000) (122,045) 144,955 (118,295) The accompanying notes arq/ i0tggral part of these financial statements. F5 3 -I -72 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Assets December 31, 2010 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments 2,035,658 1,353,407 3,389,065 Accounts receivable, net of allowance for uncollectibles 10,523 140,815 151,338 Inventory 312,017 - 312,017 Prepaid expenses - - - Total Current Assets 2,358,198 1,494,222 3,852,420 Non - current Assets: Property, plant, and equipment, net of accumulated depreciation 3,435,218 - 3,435,218 Total Assets 5,793,416 1,494,222 7,287,638 Liabilities: Current Liabilities: Accounts payable 66,429 395,101 461,530 Accrued salaries and wages 39,366 - 39,366 Current portion of compensated absences 21,778 - 21,778 Total Current Liabilities 127,573 395,101 522,674 Non - current Liabilities: Compensated absences, net of current portion 32,667 - 32,667 Total Liabilities 160,240 395,101 555,341 Net Assets: Invested in capital assets, net of related debt 3,435,218 - 3,435,218 Unrestricted 2,197, 958 1,099,121 3,297,079 Total Net Assets 5,633,176 1,099,121 6,732,297 The accompanying notes arq/ iOtggral part of these financial statements. F6 3 -I -73 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2010 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal 2,789,389 2,540,066 5,329,455 Charges for services - External - 353,022 353,022 Insurance reimbursements 29,660 680,429 710,089 Other 16,712 - 16,712 Total Operating Revenues 2,835,761 3,573,517 6,409,278 Operating Expenses: Operations 2,112,612 - 2,112,612 Health claims and premiums - 3,701,496 3,701,496 Depreciation 564,862 - 564,862 Total Operating Expenses 2,677,474 3,701,496 6,378,970 Operating Income (Loss) 158,287 (127,979) 30,308 Non - operating Revenues (Expenses): Gain (loss) on disposal of assets 22,803 - 22,803 Investment income 10,159 5,934 16,093 Total Non - operating Revenues (Expenses) 32,962 5,934 38,896 Change in Net Assets 191,249 (122,045) 69,204 Net Assets -January 1 5,441,927 1,221,166 6,663,093 Net Assets - December 31 5,633,176 1,099,121 6,732,297 The accompanying notes(�� integral part of these financial statements. F7 3 -1 -74 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2010 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 2,789,389 2,540,066 5,329,455 Other cash receipts 58,763 1,100,080 1,158,843 Cash paid for goods and services (1,198,435) (3,694,517) (4,892,952) Cash paid to employees (944,282) (10,358) (954,640) Net Cash Provided (Used) by Operating Activities 705,435 (64,729) 640,706 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 121,734 121,734 Acquisition and construction of capital assets (941,615) (941,615) Net Cash Provided (Used) by Capital and Related Financing Activities (819,881) (819,881) Cash Flows From Investing Activities: Interest on Investments 10,159 5,934 16,093 Net Cash Provided (Used) by Investing Activities 10,159 5,934 16,093 Net Change in Cash and Cash Equivalents (104,287) (58,795) (163,082) Cash and Cash Equivalents - Beginning 2,139,946 1,412,201 3,552,147 Cash and Cash Equivalents - Ending 2,035,658 1,353,407 3,389,065 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) 158,287 (127,979) 30,308 Adjustments: Depreciation 564,862 - 564,862 (Increase) decrease in accounts receivable 12,391 66,629 79,020 (Increase) decrease in inventory (20,643) - (20,643) Increase (decrease) in accounts payable (6,760) (3,379) (10,139) Increase (decrease) in accrued wages and benefits (2,702) (2,702) Total Adjustments 547,148 63,250 610,398 Net Cash Provided (Used) by Operating Activities 705,435 (64,729) 640,706 The accompanying noteso�r� integral part of these financial statements. F8 3 -1 -75 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CB1005 Library Building Remodel 400,000 390,615 9,385 - CB1010 Fire infrastructure / West Vail Fire Stn 5,300,000 3,296,382 2,003,618 102,548 CEP001 Fire Truck Purchase 570,000 316,083 253,917 - CEP004 Replace buses 2,283,214 - 2,283,214 23,174 CEP005 Software /hardware purchases 93,000 95,158 (2,158) 68,221 FED021 LiveScan System 28,500 14,250 14,250 - CEP008 Parking Entry System 78,000 75,123 2,877 118,388 CEP010 Network Upgrades 30,000 34,693 (4,693) 16,014 CEP011 Document imaging 130,592 115,956 14,636 136,421 CEP018 Web page development 12,000 - 12,000 - CEP019 CAD /RMS dispatch project 70,000 69,204 796 41,769 CEP022 Audio Visual 33,879 1,883 31,996 35,271 CEP025 Fire operations breathing apparatus - - - 180,043 CEP030 Vehicle expansion - - - 34,730 CEP031 Software Licensing 37,000 18,323 18,677 12,382 CEP033 Data Centers / Computer Rooms 15,000 7,117 7,883 33,598 CEP034 Generator Replacement - - - 19,960 CEP035 Comm Dev Arc /GIS System 25,700 3,472 22,228 20,899 CEP036 Comm Dev Permits Plus Upgrade 225,000 - 225,000 - CEP037 Library Self Check RFID system 90,000 83,673 6,327 - CHP001 Buy -down program 738,118 - 738,118 261,882 CHP005 Creekside Housing Improvements 110,582 110,581 1 46,918 CHP006 Loan guarantee - Timber Ridge 925,000 - 925,000 - CHP007 Timber Ridge Legal / Zoning 66,080 65,243 837 51,220 CHP018 Arosa Drive Duplex - Empl Housing 297,466 297,393 73 517,681 CMP006 Traffic Impact Fee Study 21,645 - 21,645 8,355 CMP007 Fire Impact Fee Study - - - 15,000 CMT003 Bus shelter replacement program 27,000 1,046 25,954 21,085 CMT004 Capital street maintenance 730,000 270,321 459,679 1,317,330 CMT005 Facility capital 1,073,000 231,246 841,754 263,423 CMT007 Parking structure maintenance 486,000 246,985 239,015 325,380 CMT009 Flammable Storage / Mag Chloride - - - 16,560 CMT011 Vail Village Inn Homeowners Roof Assessmt 17,000 17,000 - - CMT012 Flood Repairs 9,040 992 8,048 - CMT010 Underground Utilities - - - 147,221 COT002 Street light improvement program 67,500 67,496 4 65,765 COT004 Fiber -optic connection 21,000 24,375 (3,375) 7,273 COT009 Lionshead improvements - - - 34,000 COT011 I -70 noise mitigation 383,180 5,040 378,140 18,320 COT016 LH Parking Structure Redevelopment - - - 3,460 COT018 Chamonix Area Plan 50,000 38,944 11,056 20,265 COT021 1 -70 Fiber Optics - - - 158,623 COT022 S. Frontage Road Relocation - - - 20,000 CSC010 Way- finding improvements 193,653 23,381 170,272 62,320 CSC011 West Meadow Drive 83,189 19,555 63,634 520,539 CSC012 Village Streetscape 767,389 594,961 172,428 312,317 CSR007 Neighborhood Road Reconstruction 429,469 195,055 234,414 20,531 CSR008 Neighborhood Bridges 150,000 4,118 145,882 - CS1001 Manor Vail Development 83,800 - 83,800 VRA001 LionsHead Transit Center - VRA Funded 5,500,000 4,410,909 1,089,091 VRA002 LionsHead Welcome Center- VRA Funded 469,681 358,294 111,387 VRA003 LionsHead Parking Addition - VRA Funded 65,000 2,521 62,479 - Total 22,186,677 11,507,388 10,679,289 5,078,886 The accompanying notes ar6 /W2�qtggral part of these financial statements. F9 3 -1 -76 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2010 With Comparative Totals For the Year Ended December 31, 2009 2010 2009 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual RFP005 Alpine Gardens contribution 65,620 55,620 10,000 55,620 RFP006 Ford Park Master Plan - Improvements 328,017 145,093 182,924 171,983 RMG002 Environmental: Solid Waste 30,000 1,265 28,735 - RMG003 Environmental: Ecosystem Health 23,033 460 22,573 RMG004 Environmental: Public Education 4,095 1,610 2,485 RMG005 Environmental: Energy & Transportation 83,000 69,960 13,040 - RMT001 Recreation path maintenance 176,324 119,241 57,083 123,406 RMT002 Tree maintenance 127,843 57,331 70,512 47,111 RMT005 Street furniture - Streetscape 22,500 22,472 28 18,113 RMT006 Black Gore Creek sand mitigation 90,000 55,477 34,523 38,937 RMT009 Park capital maintenance 115,000 94,609 20,391 92,399 RMT010 Stream tract encroachment survey 14,081 - 14,081 50,800 RMT012 Forest Health Management - 29 (29) - RMT013 Environmental Sustainability 23,127 1,508 21,619 3,885 RMT015 Greenhouse 5,000 1,576 3,424 230,165 RMT016 Ford Park/ Tennis Center Improvements 290,986 84,656 206,330 - RMT018 Dobson Ice Arena 240,000 58,843 181,157 624,919 RMT019 Gymnastics Center 25,000 - 25,000 - RMT020 Golf Course Irrigation Project 22,000 23,405 (1,405) 1,286,022 RMT021 Golf Course Clubhouse & Other 562,450 23,349 539,101 208,861 RMT022 Recreation Enhancement Account (VRD) 242,000 - 242,000 - RMT023 Youth Services 25,000 - 25,000 97,907 RMT025 Nature Center 10,000 4,471 5,529 - RMT026 Bald Mtn Underpass 200,000 5,100 194,900 RMT027 Golf Course - Other Impr 575,100 200,799 374,301 RMT028 Flood Repairs 252,200 269,167 (16,967) RPA001 Property acquisition 350,250 350,261 (11) - RPD001 Recreation Master Planning - - - 5,406 RPD006 Whitewater Park - - 2,522 RPD013 Kayak Take -out 10,000 10,000 - RP1001 Playground Safety Improvements (Red S.) 464,000 464,000 - RP1003 Irrigation / Raw Water project 366,493 - 366,493 5,259 RP1005 Stephen's Park Improvements 66,000 63,241 2,759 - RP1006 Streamwalk & Safety Improvements - - - 1,033 RPT010 Frontage Road Bike & Ped Paths 119,268 29,610 89,658 30,732 RPT015 Katsos Ranch bike path - - - 5,499 RPT017 Timber Ridge - Buffehr Creek Separation 15,000 4,123 10,877 473,506 RRT001 Public Art 221,816 24,040 197,776 27,188 RRT003 ADA compliance 25,000 533 24,467 46,101 RRT004 Public Art - Morales Art 164,728 44,036 120,692 - RRT005 Public Art - Meadow Dr - - - 45,272 RRT006 Public Art - Winterfest 63,446 38,394 25,052 - RSS002 Meadow Drive - - - 411,788 RSS003 Seibert Circle 17,774 16,459 1,315 194,922 RSS004 Landscape Medians 190,311 3,256 187,055 109,689 Intergovernmental financing - Vail Recreation District - - - 1,600,000 Total 5,626,462 1,870,194 3,756,268 6,009,045 The accompanying notes arq / "Otggral part of these financial statements. F10 3 -1 -77 LOCAL HIGHWAY FINANCE REPORT 6/7/2011 3 -1 -78 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350- 050 -36 City or County: Vail LOCAL HIGHWAY FINANCE REPORT YEAR ENDING: December 2010 This Information From The Records Of Town of Vail: Prepared By: Kathleen Halloran Phone: 970 - 479 -2116 L DISPOSITION OF HIGHWAY -USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A. Local B. Local C. Receipts from D. Receipts from ITEM Motor -Fuel Motor- Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes 11. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway -user taxes 1. Capital outlay (from page 2) 900,141 a. Motor Fuel (from ItemI.A.5.) 2. Maintenance: 1,583,301 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a. +b.) a. Traffic control operations 274,988 2. General fund appropriations 2,810,659 b. Snow and ice removal 1,059,953 3. Other local imposts (from page 2) 1,018,077 c. Other 4. Miscellaneous local receipts (from page 2) 0 d. Total (a. through c.) 1,334,940 5. Transfers from toll facilities 4. General administration & miscellaneous 270,944 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 1,066,718 a. Bonds - Original Issues 6. Total (1 through 5) 5,156,045 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 7. Total (1 through 6) 3,828,736 b. Redemption B. Private Contributions 1,086,973 c. Total (a. + b.) C. Receipts from State government 2. Notes: (from page 2) 240,336 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) - c. Total (a. + b.) E. Total receipts (A.7 + B + C + D) 5,156,045 3. Total (l .c + 2.c) - C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 5,156,045 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 1. Bonds (Refunding Portion) B. Notes (Total) 0 V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 5,156,045 5,156,045 (0) Notes and Comments: FORM FITWA -536 (Rev. 1 -05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 6/7/2011 F11 3 -1 -79 STATE: Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING (mm/yy): December 2010 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Propert 4. Licenses f. Charges for Services 5. Specific Ownership & /or Other 1,018,077 g. Other Misc. Receipts 6. Total (1. through 5.) 1,018,077 h. Other c. Total (a. + b.) 1,018,077 i. Total (a. through h.) 0 (Carry forward to page t) (Cant' forward to page 1) ITEM AMOUNT ITEM AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 215,036 1. F14WA (from Item LD.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 25,300 d. Federal Transit Adrnin d. Other (Specif e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 25.300 g. Total (a. through f.) 0 4. Total ( + 2. + 3.f) 240336 3. Total (I.+ 2.g) Qury forward to page 1) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a) (b) (c) A.I. Capital outlay: a. Right -Of -Way Costs 0 b. Engineering Costs 90,143 90,143 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 809,998 809,998 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4) 0 809,998 809,998 d. Total Capital Outlay (Lines La. + Lb. + 1.c.5) U 900,141 900,141 (Cant' forward to page 1) Notes and Comments: FORM FHWA -536 (Rev.1 -05) PREVIOUS EDITIONS OBSOLETE 2 6/7/2011 F12 3 -1 -80 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE 6/7/2011 3 -1 -81 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, III, and IV December 31, 2010 TABLE Debt Service Coverage 2006 2007 2008 2009 2010 Pledged Revenues 17,841,680 18,913,138 19,631,366 16,913,338 17,676,115 Maximum Annual Debt Service 2,324,457 2,324,457 2,324,457 2,280,681 2,280,681 Coverage Factor 7.68x 8.14x 8.45x 7.42x 7.75x TABLE III History of Town 4% Sales Tax Receipts 2006 2007 2008 2009 2010 Sales Tax Collections (see Note below) 17,841,680 18,913,138 19,631,366 16,913,338 17,676,115 Per Cent Increase 8.24% 6.01 % 3.80% - 13.85% 4.51° Note: The reported Sales Tax Collections vary from the sales tax revenues reported in the Town's audited financial statements because one -time payments of sales tax on, for example, the sale of business assets or the settlement of a sales tax claim, are not included above. TABLE IV Monthly Comparison of Collections of Sales Tax 12 -month Period Ended 12 -month Period Ended December 31, 2009 December 31, 2010 Percent Change Current Year Current Year Current Year Month Month To Date Month To Date Month To Date January 2,619,673 2,619,673 2,564,383 2,564,383 -2.1% -2.1% February 2,588,889 5,208,562 2,577,360 5,141,743 -0.4% -1.3% March 2,504,567 7,713,129 2,685,004 7,826,747 7.2% 1.5% April 1,235,941 8,949,070 1,156,934 8,983,681 -6.4% 0.4% May 516,150 9,465,220 421,925 9,405,606 - 18.3% -0.6% June 717,233 10,182,453 873,765 10,279,371 21.8% 1.0% July 1,121,860 11,304,313 1,228,767 11,508,138 9.5% 18% August 1,068,391 12,372,704 1,147,352 12,655,490 7.4% 2.3% September 753,754 13,126,458 761,425 13,416,915 1.0% 2.2% October 581,033 13,707,491 594,362 14,011,277 2.3% 22% November 651,873 14,359,364 701,075 14,712,352 7.5% 2.5% December 2,553,974 16,913,338 2,963,763 17,676,115 16.0% 4.5% 6/7/2011 G1 3 -I -82 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables V and VI December 31, 2010 TABLE V Sales Tax Collections by Principal Sales Tax Generators 2006 2007 2008 2009 2010 Annual Sales Tax Paid by Ten Principal Generators 5,886,609 6,123,462 6,404,706 5,237,655 5,467,868 Total Annual Sales Tax Collected by Town 17,841,680 18,913,138 19,631,366 16,913,338 17,676,115 % of Total Annual Sales Tax Collections Generated by Ten Principal Generators 33.0% 32.4% 32.6% 31.0% 30.9% TABLE VI Capital Projects Fund: 2010 Actual / Projected 2011- 2014 2010 2011 2012 2013 2014 Revenues: Sales tax 7,712,020 6,590,000 6,903,000 7,041,000 7,181,880 Construction Use Tax 1,103,118 500,000 515,000 530,400 546,000 Federal grants 3,576,818 1,428,000 - - 1,024,800 Lease revenue 183,170 184,500 184,500 184,500 189,135 Project reimbursment 782,522 - - - - Transfers in 4,813,038 8,520,319 3,190,000 310,000 340,000 Earnings on investments and other 1,736,770 - 98,000 100,000 91,650 Total Revenues 19,907,456 17,222,819 10,890,500 8,165,900 9,373,465 Expenditures: Equipment purchases 693,539 4,496,053 1,010,640 656,640 1,267,540 Maintenance 995,482 1,164,948 1,610,000 1,595,000 1,600,000 Buildings and improvements 3,686,997 2,583,458 50,000 67,000 - Street projects 837,070 4,711,812 5,375,000 5,520,000 7,075,000 Housing programs 297,393 769,921 385,000 - - Lionshead redevelopment 4,771,724 9,743,276 2,825,000 - Other improvements 225,183 1,495,740 100,000 130,000 Transfer to Debt Service Fund 2,273,957 2,279,572 2,088,346 - - Total Expenditures 13,781,345 27,244,780 13,443,986 7,968,640 9,942,540 Revenues Over (Under) Expenditures 6,126,111 (10,021,961) (2,553,486) 197,260 (569,075) Beginning Fund Balance 13,153,206 19,279,317 9,257,356 6,703,870 6,901,130 Ending Fund Balance 19,279,317 9,257,356 6,703,870 6,901,130 6,332,055 6/7/2011 3 -I -83 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table XIX December 31, 2010 TABLE XIX History of General Fund Revenues, Expenditures and Changes in Fund Balance 2006 2007 2008 2009 2010 Revenues: General sales taxes 9,345,660 10,741,500 11,640,000 8,760,000 10,143,624 Property and ownership taxes 2,931,347 3,012,030 4,309,622 4,506,491 4,951,386 Ski area lift ticket admissions tax 2,975,097 3,039,619 3,277,703 3,048,011 3,357,717 Franchise fees 862,220 858,285 1,052,665 908,577 1,023,398 Penalties and interest on delinquent taxes 22,108 19,348 22,544 35,507 17,027 Licenses and permits 3,561,757 5,083,017 3,903,026 1,440,972 1,387,337 Intergovernmental revenues 1,477,270 1,509,040 1,706,197 1,611,570 1,929,121 Charges for services 4,767,097 5,351,540 5,817,239 5,693,448 5,912,669 Fines and forfeits 286,197 347,090 396,707 330,660 271,561 Interest 820,136 984,040 571,072 170,353 119,049 Rents 827,280 897,958 949,961 912,091 862,151 Other 501,699 195,016 163,025 243,991 386,271 Total Revenues 28,377,868 32,038,483 33,809,761 27,661,671 30,361,311 Expenditures: General government 6,596,987 7,730,300 7,715,791 6,037,371 5,928,142 Public safety 6,534,712 7,104,904 7,624,590 7,754,157 7,619,415 Public works and transportation 9,625,653 10,365,091 11,779,063 10,975,098 11,204,253 Economic development and community assistance 1,183,645 1,461,991 1,703,092 1,665,864 1,608,674 Municipal library 664,856 752,031 828,056 808,649 794,879 Total Expenditures 24,605,853 27,414,317 29,650,592 27,241,139 27,155,363 Excess of Revenues Over Expenditures 3,772,015 4,624,166 4,159,169 420,532 3,205,948 Other Financing Sources (Uses): Operating transfers out (2,012,772) (222,500) (991,000) - (3,742,673) Total Other Financing Sources (Uses) (2,012,772) (222,500) (991,000) - (3,742,673) Excess of Revenues Over Expenditures and Other Financing Sources (Uses) 1,759,243 4,401,666 3,168,169 420,532 (536,725) Fund Balance: Beginning 13,673,808 15,433,051 19,834,717 23,002,885 23,423,417 Ending 15,433,051 19,834,717 23,002,885 23,423,417 22,886,692 6/7/2011 G3 3 -1 -84 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables XX and XXI December 31, 2010 TABLE XX General Fund 2010 Budget Summary and Actual Comparison / 2011 Budget 2010 Amended 2010 2011 Budget Actual Budget Revenues: General sales taxes 10,143,624 10,143,624 10,310,000 Property and ownership taxes 5,013,647 4,951,386 5,055,000 Ski area lift ticket admissions tax 3,115,000 3,357,717 3,193,000 Franchise tax 1,074,564 1,023,398 1,087,402 Licenses and permits 1,207,200 1,387,337 732,200 Intergovernmental revenues 1,927,208 1,929,121 1,524,065 Charges for services 5,732,512 5,912,669 5,614,463 Fines and forfeits 260,000 271,561 305,000 Interest 115,000 119,049 194,000 Rents and other 1,290,596 1,265,449 1,031,474 Total 29,879,351 30,361,311 29,046,604 Expenditures: Town officials 1,279,126 1,162,640 1,295,860 Administrative 3,359,732 3,043,095 3,306,565 Community development 2,017,525 1,722,407 1,644,765 Public safety - Police 4,622,344 4,281,872 4,591,150 Public safety - Fire 2,905,273 2,817,132 2,981,136 Public works 3,652,561 3,530,332 3,553,226 Transportation & Parking 4,701,320 4,495,643 4,661,727 Facility maintenance 3,872,255 3,315,796 3,733,319 Public library 805,119 794,879 800,580 Contributions and special events 1,475,886 1,471,156 1,533,255 Dispatch service charges 522,213 520,411 537,827 Total 29,213,354 27,155,363 28,639,410 Excess (Deficiency) of Revenues Over Expenditures 665,997 3,205,948 407,194 Other Financing Sources (Uses): Transfer to Capital Projects Fund (3,749,000) (3,742,673) - Total Other Financing Sources (Uses): (3,749,000) (3,742,673) - Net Change in Fund Balances (3,083,003) (536,725) 407,194 Fund Balance - January 1 23,423,417 23,423,417 20,340,414 Fund Balance - December 31 20,340,414 22,886,692 20,747,608 TABLE XXI Outstanding Revenue Obligations Outstanding Issue Principal Sales Tax Revenue Refunding Bonds, Series 2008 3,260,000 Sales Tax Revenue Refunding Bonds, Series 2002B 1,050,000 Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A 3,670,000 Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B 8,270,000 Housing Facilities Revenue Bonds, Series 2003A 18,190,000 Total 34,440,000 6/7/2011 G4 3 -1 -85 SINGLE AUDIT REPORTS AND SCHEDULES 6/7/2011 3 -1 -86 M MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants {'g WEB SITE WWW.MCMAHANCPA.COM � 245 CHAPEL PLACE, SUITE 300 MAIN OFFICE: (970) 845 - 8800 CHAPEL SQUARE, BLDG C FACSIMILE: (970) 845 - 085 1 A P.O. Box 5850, AvON, CO 8 1 620 E - MAIL: MCMAHAN@MCMAHANCPA.COM REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado (the "Town ") as of and for the year ended December 31, 2010, which collectively comprise the Town's basic financial statements and have issued our report thereon dated May 5, 2011. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Town's internal control over financial reporting in as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with general accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Ale,,bcr: Amcrican Institute of Certif ,d i 1iccoiiii[ ants D. JERRY MCMAHAN, C.P.A. DANIEL R. CUDAHY, C.P.A. PAUL J. BACKES, C.P.A. MICHAEL N. JENKINS, C.A., C.P.A. AVON ASPEN FRISCO (970) 845 -8800 (9 _6M 44-3996 (970) 668 -348 1 H1 3 -I -87 To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado This report is intended solely for the information and use of management, others within the Town, federal awarding agencies, and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. A C-JWA-' aa t-, L I ri. McMahan and Associates, L.L.C. May 5, 2011 6/7/2011 H2 3 -1 -88 M MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants {'g WEB SITE WWW.MCMAHANCPA.COM � 245 CHAPEL PLACE, SUITE 300 MAIN OFFICE: (970) 845 - 8800 CHAPEL SQUARE, BLDG C FACSIMILE: (970) 845 - 085 1 A P.O. Box 5850, AvON, CO 8 1 620 E - MAIL: MCMAHAN@MCMAHANCPA.COM REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado Compliance We have audited the compliance of the Town of Vail, Colorado (the "Town ") with the types of compliance requirements described in the U.S. Office of Management and Budget ( "OMB ") CircularA -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2010. The Town's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the Town's management. Our responsibility is to express an opinion on the Town's compliance based on our audit. We conducted our audit of compliance in accordance with U.S. generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Town's compliance with those requirements. In our opinion, the Town of Vail, Colorado complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2010. Internal Control Over Compliance The management of the Town is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Town's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control over compliance. Accordingly, we do no express an opinion on the effectiveness of the Town's internal control over compliance. Ale,,bcr: Amcrican Institute of Certif ,d i Accountants D. JERRY MCMAHAN, C.P.A. DANIEL R. CUDAHY, C.P.A. PAUL J. BACKES, C.P.A. MICHAEL N. JENKINS, C.A., C.P.A. AVON ASPEN FRISCO (970) 845 -8800 (9 _6M 44-3996 (970) 668 -348 1 H3 3 -I -89 To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management, others within the Town, federal awarding agencies, and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. Aj WAX-4- aa L_ McMahan and Associates, L.L.C. May 5, 2011 6/7/2011 H4 3 -1 -90 Town of Vail, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2010 Part I — Summary of Auditor's Results Financial Statements: Type of auditor's report issued Unqualified Internal control over financial reporting: Material weakness identified None noted Reportable condition identified that are not considered to be material weaknesses None reported Noncompliance material to financial statements noted None noted Federal Awards: Internal control over major programs: Material weakness identified None noted Reportable conditions identified that are not considered to be material weaknesses None reported Type of auditor's report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A -133 None noted Major program(s): Discretionary Funding Section 5309 CFDA #20.500 Dollar threshold used to identify Type A from Type B programs $300,000 Identified as low -risk auditee No Part II — Findings Related to Financial Statements Findings related to financial statements as required by Government Auditing Standards None noted Auditor - assigned reference number Not applicable Part III: Findings Related to Federal Awards Internal control findings None noted Compliance findings None note Questioned costs None noted Auditor - assigned reference number Not applicable 6/7/2011 H5 3 -I -91 Town of Vail, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2010 (Continued) Note: There were no findings for the fiscal year ended December 31, 2009. 6/7/2011 H6 3 -I -92 Town of Vail, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2010 Federal CFDA Major Program Title Number Program Expenditures Federal Transportation Agency: Discretionary Funding Section 5309 20.500 Yes 3,441,735 Total - Federal Transportation Agency 3,441,735 Department of Homeland Security: Staffing for Adequate Fire and Emergency Response (SAFER) 97.083 No 87,469 Total - U.S. Department of Homeland Security 87,469 Department of Justice: Passed through Colorado Department of Criminal Justice: COPs Hiring Recovery Program 16.710 No 76,012 Bryne Justice Assistance Grant 16.305 No 14,250 Total - U.S. Department of Justice 90,262 Total 3,619,466 Notes to the Schedule of Expenditures of Federal Awards for the year ended December 31, 2010 Note 1. Basis of Presentation: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Vail and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Note 2. Sub - recipients: The Town of Vail did not provide any federal funds listed in the Schedule of Expenditures of Federal Awards to sub - recipients. The accompanying notes aWIr2 lilt (bgral part of these financial statements. H7 3 -1 -93 } TOWN OF VAQ' VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: A request to proceed through the development review process with a proposal to re- construct and maintain existing private improvements (stairs and deck) on the Town of Vail owned Gore Creek stream tract, Tract A, Vail Village Filing 5, generally located adjacent to the Vail Trails East Condominiums at 433 Gore Creek Drive, and setting forth details in regard thereto. PRESENTER(S): Bill Gibson, Planner and Steven Riden Architect, Applicant's Representative ACTION REQUESTED OF COUNCIL: On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant's request for property owner authorization to proceed through the Town's development review process. BACKGROUND: The Town of Vail development review process requires all applications to have the authorization of the property owner. Since the subject private improvements are located on Town of Vail owned property, the applicant must obtain the Vail Town Council's property owner authorization before proceeding with applications to re- construct and maintain the existing stairs and portions of the deck. STAFF RECOMMENDATION: There is no record that the subject stairs or deck were originally constructed with property owner approval from either Vail Resorts or the Town of Vail. Additionally, there is no record that the subject stairs or deck were originally constructed with development review approval from either Eagle County or the Town of Vail. On October 6, 2009, the Vail Town Council directed Staff to maintain a "zero tolerance" policy for allowing illegal private encroachments on town -owned stream tract lands. This policy was initiated to protect Vail's waterways and their surrounding riparian buffer zones, to provide public access to these recreational amenities, and to prevent the privatization of public property. Based upon this policy direction, Staff recommends the Vail Town Council denies the applicant's requests. For additional detail, please refer to the Staff memorandum dated June 7, 2011. ATTACHMENTS: Town Council memorandum 6/7/2011 TOWN OF VAIL Memorandum TO: Vail Town Council FROM: Community Development Department DATE: June 7, 2011 SUBJECT: A request to proceed through the development review process with a proposal to re- construct and maintain existing private improvements (stairs and deck) on the Town of Vail owned Gore Creek stream tract, Tract A, Vail Village Filing 5, generally located adjacent to the Vail Trails East Condominiums at 433 Gore Creek Drive, and setting forth details in regard thereto. Applicant: Vail Trails East Condominiums Planner: Bill Gibson I. SUMMARY The applicant, Vail Trails East Condominiums, represented by Steve Riden Architect, is requesting permission to proceed through the development review process with a proposal to re- construct and maintain an existing stair and portions of a deck for Unit 16B, Vail Trails East Condominiums which are located on the adjacent Town of Vail owned Tract A, Vail Village Filing 5. On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant's request for property owner authorization to proceed through the Town's development review process. The approval of this request will only grant the applicant the property owner authorization necessary to proceed through the Town's development review process. II. DESCRIPTION OF REQUEST The applicant, Vail Trails East Condominiums, represented by Steve Riden Architect, is requesting permission to proceed through the development review process with a proposal to re- construct and maintain an existing stair and portions of a deck located on the east and north sides of the Vail Trails East building. These existing private improvements are associated with Unit 16B, Vail Trails East; but are located on the Town of Vail owned Gore Creek stream tract. There are limited records in the Town's archives concerning the subject stairs and deck, but the following is a summary of the information Staff was able to obtain from the archives: 6'7 201 -1 -i History of Tract A • The subject Town of Vail owned Tract A was previously part of a larger property owned by Vail Resorts. The subject Tract A is the remainder of this larger property left after the Vail Trails Chalets, Vail Trails East and Texas Townhouses were carved out as separate development sites. Tract A is not only the Gore Creek stream tract, but also a portion of property that separates Vail Trails East from the Texas Townhomes. • The Texas Townhomes were subdivided as Vail Village Filing 4 under Eagle County jurisdiction in September of 1963. • The Vail Trails Chalets were subdivided as part of Block 4, Vail Village Filing 1 under Eagle County jurisdiction in November of 1963. • The Vail Trails East was also constructed in the early 1960's under Eagle County jurisdiction with a condominium map recorded in November of 1964. • The subject property was platted as Tract A, Vail Village Filing 5, while under Eagle County jurisdiction in November of 1965. • The subject property was annexed as part of the original Town of Vail established in August of 1966. • The 2.7 acre subject Tract A, along with several other properties, were dedicated by Vail Resorts to the Town of Vail as public stream tract properties in July of 1984. • On October 6, 2009, the Vail Town Council directed Staff to maintain a "zero tolerance" policy for allowing illegal private encroachments on town -owned stream tract lands. This policy was initiated to protect Vail's waterways and their surrounding riparian buffer zones, to provide public access to these recreational amenities, and to prevent the privatization of public property. History of Unit 16B, Vail Trails East • As noted above, Vail Trails East was constructed in the early 1960's under Eagle County jurisdiction with a condominium map recorded in November of 1964. • Lot 15 is the far eastern town house lot in the Vail Trails East building. • The 1964 Vail Trails East condominium map divided Lot 15 into three units: 15, 16A, and 16B. • Unit 15 occupied both the lower level and entire upper levels of the building on the southern one -half of the Vail Trails East building (parking lot side). Unit 16A occupied the upper levels of the building on the northern one -half of the Vail Trails East building (Gore Creek side). The subject Unit 16B occupied only the lowest level of the building on the northern one -half of the Vail Trails East building (Gore Creek side). • Originally, and still today, the entrance to Unit 16B is a ground level door located on the north side (Gore Creek side) of the Vail Trails East building. • This entrance to Unit 16B is one story below the grade of parking lot on the south side of the Vail Trails East building. • The only access to the Unit 16B entrance from the parking lot /street is the exterior stairs located on east side of the Vail Trails East building. Town of Vail Page 2 6/7/2011 4 -1 -2 • These existing stairs are located on Tract A, a Town of Vail owned Gore Creek stream tract property (the Vail Trails East and Texas Townhouses buildings are separated by a portion of Tract A). • There is no record in the Town's archives of the stairs or deck having Town of Vail design review or building permit approvals. • The existing stairs appear on a land survey from 1991, so there is documentation of the subject stairs existing, either legally or illegally, on the Town's property for at least 20 years. • The owner of Unit 16B has an active design review approval and building permit to construct a new bay window and to remodel the interior of their unit. They had proposed no changes to the existing exterior stairs or deck that encroach onto the subject Tract A. • During the course of construction, a gas line was discovered under the proposed new bay window, existing deck, and existing exterior stairs. • A gas line under a bay window, deck, and stair is a safety concern and a violation of the building code. So, the owners of Unit 16B were required to relocate this found gas line. • To excavate and relocate this found gas line, the existing deck and stairs were partially demolished. • During the excavation of the found gas line, it was discovered that the line had been previously abandoned and was no longer in use. Since this gas line was no longer in use, it poses no safety concern or building code violation. • The result was that the existing deck and stairs had already been partially demolished before the gas line was determined to be abandoned. • The building code requires that the repair and re- construction of the existing deck and stairs must comply with current building code standards. • The applicant is proposing to repair and re- construct the existing deck and stairs in compliance with the current building code requirements (e.g. installation of hand rails and modifications to the stair rise and run dimensions). • These changes to the existing deck and stairs require design review approval and amendments to the owner of Unit 1613's building permit. On October 6, 2009, the Vail Town Council directed Staff to maintain a "zero tolerance" policy for allowing illegal private encroachments on town -owned stream tract lands. This policy was initiated to protect Vail's waterways and their surrounding riparian buffer zones, to provide public access to these recreational amenities, and to prevent the privatization of public property. There is no record that the subject stairs or deck were originally constructed with property owner approval from either Vail Resorts or the Town of Vail. There is no record that the subject stairs or deck were originally constructed with development review approval from either Eagle County or the Town of Vail. If the subject stairs and deck were not constructed legally, these improvements can not be considered "grandfathered ". If the subject stairs and deck were legally constructed, these "legally non - conforming" improvements could be maintained and repaired (if the repair or maintenance does not increase the non - conformity) pursuant to Chapter 12 -18, Non - Town of Vail Page 3 6/7/20 11 4 -1 -3 conforming Sites, Uses, Structures, and Site Improvements, Vail Town Code. However, the provisions of Chapter 12 -18, Vail Town Code, do not supersede the Vail Town Council's authority as a property owner to approve, approve with conditions, or deny the applicant's request to proceed through the development review process. The Town of Vail development review process requires all applications to have the authorization of the property owner. Since the subject private improvements are located on Town of Vail owned property, the Vail Town Council must authorize the applicant's application to re- construct and maintain the existing stairs and portions of the deck. The Vail Town Council, representing the property owner, shall approve, approve with conditions, or deny the application's request. Therefore, the Vail Town Council may: • Allow the applicant to re- construct and maintain the stairs and deck in their previous configuration. • Allow the applicant to re- construct and maintain the stairs and deck in a modified configuration, such as reducing the degree of encroachment onto the Town's stream tract. • Deny the request and require the removal of the stairs and deck from the Town's stream tract. A vicinity map (Attachment A), the applicant's request (Attachment B), excerpts from the 1964 plat of Vail Trails East (Attachment C), the site plan from the current building permit (Attachment D), the applicant's pre- construction photographs (Attachment E), and April 26, 2011 photographs (Attachment F) have been attached for review. III. STAFF RECOMMENDATION There is no record that the subject stairs or deck were originally constructed with property owner approval from either Vail Resorts or the Town of Vail. Additionally, there is no record that the subject stairs or deck were originally constructed with development review approval from either Eagle County or the Town of Vail. On October 6, 2009, the Vail Town Council directed Staff to maintain a "zero tolerance" policy for allowing illegal private encroachments on town -owned stream tract lands. This policy was initiated to protect Vail's waterways and their surrounding riparian buffer zones, to provide public access to these recreational amenities, and to prevent the privatization of public property. Based upon this policy direction, Staff recommends the Vail Town Council denies the applicant's requests. Should the Vail Town Council choose to deny the applicant's request, Staff recommends the Council pass the following motion: "The Vail Town Council, on behalf of the property owner, denies the applicant's request to proceed through the development review process with a proposal to repair and re- construct existing private improvements (stairs and deck) on the Town of Vail owned Gore Creek stream tract, Tract A, Vail Village Filing 5, located adjacent to the Vail Trails East building at 433 Gore Creek Drive, and setting forth details in regard thereto." Town of Vail Page 4 6 7 20 11 -1 -+ Should the Vail Town Council choose to approve the applicant's request, Staff recommends the Council pass the following motion with the following conditions: "The Vail Town Council, on behalf of the property owner, approves the applicant's request to proceed through the development review process with a proposal to repair and re- construct existing private improvements (stairs and deck) on the Town of Vail owned Gore Creek stream tract, Tract A, Vail Village Filing 5, located adjacent to the Vail Trails East building at 433 Gore Creek Drive, and setting forth details in regard thereto, subject to the following conditions. 1. This approval is contingent upon the applicant obtaining Town of Vail design review and building permit approvals for this proposal. 2. Prior to construction, the applicant must execute an agreement for the use and maintenance of Town of Vail property in a form acceptable to the Town Attorney." Please be advised that should the Town Council choose to approve this request, such an approval would not constitute an explicit approval of the proposed improvements. The approval of this request will only grant the applicant the property owner authorization necessary to proceed through the Town's development review process. IV. ATTACHMENTS A. Vicinity map B. Applicant's request C. 1964 condominium plat excerpts D. Site plan from current building permit E. Applicant's pre- construction photographs F. Photographs from April 26, 2011 Town of Vail Page 5 6/7/20 11 4 -1 -5 Vail Town Council Attachment A _ ` *" U W = o _ Q) Or 'a o LL � _� Q) LL 0 ) - Q) C) Q) >Y �o � o ' 0 Q (.0 U CL � � 1 v • r 0 0 � M L � 4t Town of Vail Page 6 6/7/20 11 4 -1 -6 Vail Town Council Attachment B �i11rl jteven games Kiden A. A. Architect P.C. P.O.6ox 5z5s \/ail= s 1 658 -3258 97 -3 - 970 - 589 -01 50 mobile steve@riden I .com Melm6ers of the Vail Town Council The Town of Vail, Colorado In reference to the Vail Trails East Condominiums, Jots 7 - 14 block 4, Vail Village 1 " riling. Otherwise known as; 433 Gore Creek D rive, Vail Colorado, 81658 Greetings and salutations, The Vail Trails East Condominium Association at 433 Gore Creek Drive wish to request from the Vail Town Council as representative property owners to allow the reconstruction and maintenance 6 th Vail Trails East Condominium Association, a portion of existing decks and an access walkway runningalacent to the eastern edge of property and presently partially rests upon a portion of the Town of Vail Gore Creek Stream tract created in the 1980's. It is known that the configuration has not been altered since the original construction of the property in 1964. This is verifiable 6 original construction documents and condominium declarations. And that these non conformities have only come to light because of recent construction activities requiring the removal of a portion of the stair, walkway and deck forgas utility line verification per the building code. The most recent construction included design review and permittingto repair the existing deck and the assumption that this access was always available and considered a rightforthe eastern units. This walkway, stairs and deck have always been maintained and repaire 6 th e condominium association and no one else. It is known that there have always been 25 fee simple units on lots 7 through 15 and the condominium declarations confirm that the limited common elements do not give access to unit 16gj which is on the lower level and is accessed only via the walkway, stairs and deckfor the past 47 years. Town of Vail Page 7 6/7/2011 4 -1 -7 It is not known if there was an agreement witk Vail Associates to maintain the existingwalkway and access prior to the dedication to the town as a stream tractors koulcI the dedication have included an easement at that time to accommodate the access rigkts for the property owners for the eastern units. It is believed that there is an agreement with the property owners along Core Creek Drive including Vail Trails Chalet, Vail Trails East and the Texas Townkomcs among others, and the Town of Vail Public works for the maintenance of Town property adjacent to their respective properties carried out around the time of the abandonment of Chalet }toad for use. This could have included this walkway. The agreement is not recorded with the county and cloes not appear on title insurance documents. It ekould be noted that this access serves additional purposes that comply with the necessity for exiting tke property safely and fire fighting capabilities to the rear of the structure as well as utility maintenance and services. Tke owners and Condominium Association recognizes and respects the goals and objectives for the Town of Vail's Master Plan and kae no desire to restrict public access or privatize any portion of the stream tracts and as citizens encourages the policies and goals for the benefit of everyone. It could be best stated that in retrospect the access to the units on the eastern portion of Vail Trails East could Gave been granted muck earlier or certainly from a more detailed inspection wken tke stream tracts were dedicated 6, tke resort company. As there is not a provision for adverse possession between a person and a municipality and tke use kae been esta6lisked for at least 3o and pro6a6ly 47 years, tkis seems tke most prudent avenue to resolve tke existinganomaly. It is requested tkerefore tkat tke Town of Vail allow tke owners of tke Vail Trails Last to re -build the walkway, stairs and deck in accordance to tke building code requirements and direct tke staff and tke town attorney to draft an acceptable agreement for tke continued use as an access to their property. It is preferred tkat tke agreement be an easement versus a lease as there is no income derived from tkis access. Tkis agreement may also include tke provision tkat tke responsibility fortke maintenance of tkis access lie with the condominium association and not place any additional burden or liability to tke Town of Vail. Keapectfully submitted, jteven James KiJen AI A. Arckitect Town of Vail Page 8 6/7/2011 4 -1 -8 Vail Town Council Attachment C m ,I 4 a� �•�e n � S " °3 `�•� F f a i a a 3 yEe CC o F iz 0 J I v y S yW 8 I 2 Ld 1 2 N ` y ; T 5 W O A �. m F F CL I M I i E I e 4 IN Hai "a •�. ::��c�a °i I ng 8 �S �ti5�`���i. • �Se C $ =� i .II �33�y ��3 y� $�eR�� ? � K�:e al.i....> ,Nry tieW��aB� I Town of Vail Page 9 6/7/2011 4 -1 -9 1 0 0 NO IN Oat Town ofVail Page 10 6/7/2011 - 4-1-10 Vail Town Council Attachment D o- \x MM Mema ! EXISTING WALL OUTLINE ABOVE i ? � xet7a2 .1 AREA REQUESTED FOR VARIANCE r' (INFILL BELOW EXISTING BAY ABOVE) j 817 9/ .' UNIT 16B (LOWER) b . Ana 20' `� R, TOP OF ROCK WALL = 8182.4 )(M74.4 81T4A'/ xe17AY 74:8 ate`I M71LY 6178.8 ! a 8178.7 / f��\ - J/, 8177.6 4. 8178.8 x8178.2 V a /O f 8178 / p� /8178. Q dry. ^M 8178.8 8171L M 3 / / 76.8 x8176.8 817L .3 4 : 0.5'x0.5' WOO COLUM /k 8179.4 n Td [,A \ T -- 6 ' x8177.4 Town of Vail Page 11 6/7/201 4 -1 -11 Vail Town Council Attachment E I 14 �t x a -. , Town of Vail Page 12 6/7/2011 4 -1 -12 - a i t • -t t� �• ilr s ��• imp < � i T own o V 6/7/2011 • a s s Town of P.• 6/7/2011 14 Vail Town • Attachment c- s 4 t _ • I W r f Town of P.•- •� ... z: � � � .ate ,,? , I u r - 4, T own of '.•- 16 ` ■ C ! a Town of P.• 6/7/2011 17 } TOWN OF VAQ' VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: A request to proceed through the development review process with a proposal to re- construct, snow melt, and maintain stairs in the Lionshead mall adjacent to Billy's Island Grill, located at Tract C, Lionhead 6th Filing, and setting forth details in regard thereto. PRESENTER(S): Bill Gibson, Planner and Mark Hallenbeck, Rocky Mountain Construction Group ACTION REQUESTED OF COUNCIL: On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant's request for property owner authorization to proceed through the Town's development review process. BACKGROUND: The Town of Vail development review process requires all applications to have the authorization of the property owner. Since the subject private improvements are located on Town of Vail owned property, the applicant must obtain the Vail Town Council's property owner authorization before proceeding with applications to re- construct the subject stairs. STAFF RECOMMENDATION: Staff the Vail Town Council approves the applicant's request. For additional detail, please refer to the Staff memorandum dated June 7, 2011. ATTACHMENTS: Town Council memorandum 6/7/2011 TOWN OF VAIL Memorandum TO: Vail Town Council FROM: Community Development Department DATE: June 7, 2011 SUBJECT: A request to proceed through the development review process with a proposal to re- construct, snow melt, and maintain stairs in the Lionshead mall adjacent to Billy's Island Grill, located at Tract C, Lionhead 6 Filing, and setting forth details in regard thereto. Applicant: Landmark Condominium Association, represented by Mark Hallenbeck, Rocky Mountain Construction Group Planner: Bill Gibson I. SUMMARY The applicant, Landmark Condominium Association, represented by Mark Hallenbeck, Rocky Mountain Construction Group, is requesting permission to proceed through the development review process with a proposal to re- construct, snow melt, and maintain an existing stair located in the Town of Vail owned Lionshead mall adjacent to Billy's Island Grill. On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant's request for property owner authorization to proceed through the Town's development review process. The approval of this request will only grant the applicant the property owner authorization necessary to proceed through the Town's development review process. II. DESCRIPTION OF REQUEST The applicant, Landmark Condominium Association, represented by Mark Hallenbeck, Rocky Mountain Construction Group, is requesting permission to proceed through the development review process with a proposal to re- construct, snow melt, and maintain an existing stair in the Town of Vail owned Lionshead mall. The subject stairs are located between Sundial Plaza and the deck of Billy's Island Grill. The subject stair is identified on Map H of the Lionshead Redevelopment Master Plan as a "Designated Pedestrian Plazas / Pathways ". However, there are no other records in the Town's archives pertaining to the subject stairs. 6'7 201 5 -I -I The subject stairs are currently maintained (including snow removal) by the Landmark and not by Town of Vail. The Town of Vail Public Works Department's Streets and Roads Division supports the applicant's request to rebuild and snowmelt the subject stairs. A vicinity map (Attachment A), the applicant's request (Attachment B), and Map H of the Lionshead Redevelopment Master Plan (Attachment C) have been attached for review. III. STAFF RECOMMENDATION Should the Vail Town Council choose to approve the applicant's request, Staff recommends the Council pass the following motion: "The Vail Town Council, on behalf of the property owner, approves the applicant's request to proceed through the development review process with a proposal to re- construct, snow melt, and maintain stairs in the Lionshead mall adjacent to Billy's Island Grill, located at Tract C, Lionhead 6 Filing, and setting forth details in regard thereto." Should the Vail Town Council choose to approve the applicant's request, Staff recommends the Council include the following conditions in the motion: "I. This approval is contingent upon the applicant obtaining Town of Vail design review and building permit approvals for this proposal. 2. Prior to construction, the applicant must execute an agreement for the use and maintenance of Town of Vail property in a form acceptable to the Town Attorney." Please be advised that should the Town Council choose to approve this request, such an approval would not constitute an explicit approval of the proposed improvements. The approval of this request will only grant the applicant the property owner authorization necessary to proceed through the Town's development review process. IV. ATTACHMENTS A. Vicinity map B. Applicant's request C. Lionshead Redevelopment Master Plan Map H Town of Vail Page 2 6/7/201 5 -I -2 Vail Town Council Attachment A n J � k i O WW �C U 1 p4o } e IM O LL U L LL O t cl� O ;. O +� • p O A to W W Town of Vail Page 3 6/7/2011 5 -1 -3 Vail Town Council Attachment B Rocky Mountain Construction Group Incl May 16, 2011 Town of Vail Community Development & Building Department 75 S. Frontage Road West Vail, Colorado 81657 Re: Permission to Proceed Through Design Review Process To Whom It May Concern: Landmark Condominium Association is seeking permission from the Vail Town Council to proceed with removal of the old stairs to the east of Billy's restaurant. The existing stairs and handrails will be replaced with new materials, as shown in the attached drawings. Also attached is a letter from the landmark Condominium Association of their commitment to add snowmelt, maintain and care for the new stairs and snowmelt in the future. Thank you for your c ePation, Mark Hallenbeck Rocky Mountain Construction Gro 070 0Z MAY Z O�� 120 Willow Bridge Rd Suite 7 Vail, CO 81657 TOWN O F 1/A I L Office 970 476 -4458 Fax 970 476 -0951 Town of Vail Page 4 6/7/2011 5 -1 -4 Landmark Condominium Association 610 W. Lionshead Circle • Vail, Colorado 81657 • Phone 970.476.1350 May 3, 2011 Town of Vail Community Development & Building Dept. 75 S. Frontage Rd. Vail, CO 81657 Re: Landmark East Steps to Billys Deck To Whom It May Concern, The Landmark Condominiums will be providing the snow melting of the east side steps through the existing snow melt system which currently services Billy's deck. The Landmark will maintain and care for these steps as long as they exist. Please do not hesitate to contact me if you have any questions or there is anything further you need. Sincerely, rey Manager, Landmark Condominiums Town of Vail Page 5 6/7/201 5 -i -5 i -- — — sviniNIW 2 GNVI o ' t� WA = i f o Will NEW t f 4�I 1 � V I Town of Vail Page 6 6/7/2011 5 -1 -6 ,� _ � . ��_,� \, p '�.` � ,. _ • 1' • 1 I 1 • s - _ �j • k p y s Vow P- 40 f r y y A i 1 v ��,, .�. •µ�� f �. a .� S S A ! �� �'��" �i�'� _ + �• ��� ��� "7�:�a� �..a�i�il`�t,`�`�� t.l� - �!'-. �- � °� � � I� :I � _ Ali t�' ,.� ��,r.'� ;9�'* :..;" � �• _ M A � � `� t om'• - . . T own of P.•- • 6/7/2 i ' x 1 f � qq 6 ga � a � a ygpp a4� Jo x a Pull U / J S 3 j ¢i G i� fs Fs � tti t `•. @ 1 9v 7 g i s @ f 1Q El �° I • 3 , � I � e� � ' 1 a G � I' � f 6I c ti I • a i\ . + 9 is / ,- •`,' f ed; �: S •,A � i 1 9 p;� .13 a – 1 g • sa ;;• Q �4Fs q c i(ss:.:::rm7 l � i9 - -- ll�a vcs,� �laxsxcno ciwc — fl . +g9 Town of Vail Page 10 6/7/2011 5 -1 -10 Attachment C O z „ » a dp+p Lu 2 0 N \ 3 >C d \ \ \ z J d W a dd iYt i \ W LIJ CO rh o� O � 3 Q Ip x n� o � 3 Town of Vail Page 11 6/7/2011 5 -1 -11 TOWN OF VAQ ' VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Resolution No. 11, Series of 2011 - Acceptance of the donation of Glen Lyon Subdivision Tract H PRESENTER(S): George Ruther ACTION REQUESTED OF COUNCIL: Approve or Deny Resolution No. 11, Series of 2011 BACKGROUND: The owner of Glen Lyon Subdivision Tract H (the "Property ") would like to donate the Property to the Town of Vail. Passage of Resolution No. 11, Series of 2011, would authorize the Town Manager to execute, on behalf of the Town, an agreement to accept the Property. STAFF RECOMMENDATION: Approve Resolution No. 11, Series of 2011 ATTACHMENTS: Resolution No. 11 6/7/2011 RESOLUTION NO. 11 Series of 2011 A RESOLUTION APPROVING THE ACCEPTANCE OF PROPERTY IN THE TOWN OF VAIL LEGALLY DESCRIBED AS GLEN LYON SUBDIVISION TRACT H, EAGLE COUNTY, COLORADO; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the "Town "), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the "Charter"); and WHEREAS, the members of the Town Council of the Town (the "Council ") have been duly elected and qualified; and WHEREAS, the Town owns undeveloped land throughout town; and WHEREAS, the Owner of the Property would like to donate it to the Town of Vail; and WHEREAS, the Owner has come to the Town with a proposal to donate this parcel of land; and WHEREAS, the Council considers it in the interest of the public health, safety and welfare to accept property legally described as Glen Lyon Subdivision Tract H, Eagle County, Colorado (the "Property "); and WHEREAS, the Council's approval of this Resolution No. 11, Series of 2011, is required to accept conveyance of the Property. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1. The acceptance of the Property is hereby approved by the Council. 2. The Town Manager is hereby authorized to execute, on behalf of the Town, an agreement to accept the donation of the Property and to take whatever steps are necessary to complete the conveyance of the Property to the Town. 3. This resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 7 th day of June, 2011. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Resolution No. 11, Series of 2011 6/7/2011 6 -1 -I } TOWN OF VAQ' VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Town of Vail Facility -Wide Energy Conservation Project - Final Revised PRESENTER(S): Johnson Controls Inc., Kristen Bertuglia, Greg Hall ACTION REQUESTED OF COUNCIL: Staff requests that the Vail Town Council provide feedback on the answers to questions posed at the April 19th Town Council work session regarding the energy conservation measures proposed within the Facility Wide Energy Conservation Project, and provide direction to Staff on whether to proceed to contract with Johnson Controls Inc. for the project as written, proceed with modifications, or not to proceed. BACKGROUND: Buildings are the largest source (71%) of the Town's energy consumption and greenhouse gas emissions, contributing over 8,400 tons of carbon dioxide (CO2) into the atmosphere in 2006 (GHG emissions as of 2009 were 9,497 tons CO2 for the facilities included in this project). Therefore, in effort to achieve the Town of Vail's stated sustainability goal of reducing energy consumption and greenhouse gas emissions by 20% by 2020, the Town of Vail contracted with Johnson Controls, Inc., an Energy Services Company (ESCO) in December, 2010, to perform energy audits on all Town -owned facilities and to create a detailed energy efficiency implementation plan, or "performance contract" to guide the Town in selecting priority upgrades to individual building systems. The goal was to achieve as close to a 20% reduction in energy consumption and greenhouse gas (GHG) emissions as possible, while achieving a payback period of 15 years for the overall project (further background information on the project process, may be found in Attachment A). The final project provides a 15 year payback and a 12% reduction in overall energy and greenhouse gas emissions, and was presented to the Vail Town Council on the April 19th, 2011 work session, where the Town Council posed the following questions: 1. Which energy improvement measures are included at each site, and what is the cost, greenhouse gas emissions savings, and operational savings breakdown? 2. How were projects bid, and what is the contractor selection process? 3. If the project provides a 12% reduction in energy and greenhouse gas emissions overall, how will the Town address the remaining 8 %? 4. What is the Johnson Controls fee percentage breakdown? The final project is a $3.2 million investment in the Town's facilities, with a 15 year payback, providing over $2.8 million in energy savings and $258,000 in operations and maintenance savings over the life of the term. STAFF RECOMMENDATION: Staff recommends that the Vail Town Council direct Staff to proceed to contract with Johnson Controls Inc. to complete the Facility Wide Energy Conservation project in its current revised format. 6/7/2011 ATTACHMENTS: Memo - Facility Wide Energy Conservation Project - Final Attachment B Energy conservation project cost matrix Attachment A - April 19th Town Council Memo 6/7/2011 TOWN OF VAIL� Memorandum To: Vail Town Council From: Community Development and Public Works Departments Date: June 7, 2011 Subject: Facility Wide Energy Conservation Project - Final Revised I. Purpose The two -fold purpose of this memo is to: 1) provide follow up information to questions posed at the April 19 Town Council work session regarding the energy conservation measures proposed, pricing and bidding approach, and further project detail by site, and 2) to present the final Facility Wide Energy Conservation Project proposal for Town Council approval. II. Background Buildings are the largest source (71 %) of the Town's energy consumption and greenhouse gas emissions, contributing over 8,400 tons of carbon dioxide (CO2) into the atmosphere in 2006 (GHG emissions as of 2009 were 9,497 tons CO2 for the facilities included in this project). Therefore, in effort to achieve the Town of Vail's stated sustainability goal of reducing energy consumption and greenhouse gas emissions by 20% by 2020, the Town of Vail contracted with Johnson Controls, Inc., an Energy Services Company (ESCO) in December, 2010, to perform energy audits on all Town - owned facilities and to create a detailed energy efficiency implementation plan, or "performance contract" to guide the Town in selecting priority upgrades to individual building systems. The goal was to achieve as close to a 20% reduction in energy consumption and greenhouse gas (GHG) emissions as possible, while achieving a payback period of 15 years for the overall project (further background information on the project process, may be found in Attachment A). The final project provides a 15 year payback and a 12% reduction in overall energy and greenhouse gas emissions, and was presented to the Vail Town Council on the April 19 2011 work session, where the Town Council posed the following questions: 1. Which energy improvement measures are included at each site, and what is the cost, greenhouse gas emissions savings, and operational savings breakdown? (See Attachment B) 2. How were projects bid, and what is the contractor selection process? It is standard policy for Johnson Controls, Inc. (JCI) as well as a requirement of the Governor's Energy Office contract, to have multiple bidders provide quotations to perform work for- pierformance contracts. 7-1 -i General guidelines indicate that three bidders for each major trade are preferred. In this project, three mechanical and electrical contractors were invited to walk the project, along with 2 control contractors. Control contractors are considered to be specialty, as customers may have a relationship or large installed base with a particular vendor and not wish to segregate the system, or deviate from that vendor. Staff agreed to price bids from both JCI and Long & Associates, who has a footprint existing on site. The contractor summary for the mechanical, electrical and controls subcontractors for the properly submitted and legitimate bids are as follows: Mechanical US Engineering (Loveland) Skyline Mechanical (Avon) $181,548.15 $118,309.69 Electrical Tri -Phase Electric (Vail) EC Electric (Grand JunctionNail) AK Electric (Vail) $50,588.84 $105,811.56 $50,847.08 Controls Long (Denver) JCI (Littleton) $308,510 $116,584 3. If the project provides a 12% reduction in energy and greenhouse gas emissions overall, how will the Town address the remaining 8 %? The Town's 20% by 20% energy and GHG emissions reduction goal is based on all town energy use, including outdoor energy use and fleet. Because neither of these areas was within the scope of this project, in the next phase of the overall energy conservation initiative, Staff will investigate alternative fuels, including additional electric vehicles, compressed natural gas conversion, and an additional fueling tank for biofuels to offset straight diesel fuel during summer months and where appropriate. The Town will continue to work on proper vehicles for proper use, and downsizing where appropriate. In addition, there are significant opportunities for energy reduction in street and path lighting and outdoor fire pits, as well as additional renewable energy projects. Town of Vail Page 2 6/7/201 7 -1 -2 4. What is the Johnson Controls fee percentage breakdown? JCI project fees are broken down by percentages (Figure 1), and dollar amount (Figure 2). Cod Categories cost Beal *wms Rmltemoosts Lighting $1,606, Voter $129,1 Pert. Period M &V B vielope hfiltrfigl & InsLletion $55, 1.3% VVrrbv\is $12 Garage Lighting total profit Cq $251 Mockups 8.2% Contingency 0.2% Kkicharical 329, 4.2% Bond Permits A RMCost Total $?,OB5,51 0.3 ° %� Construction Pd Prq� Lem Cats vV in .p M &V Design & 0.6% Engineering PDA 03ISti.lchon 0rd�- Ramat 4.8% 3.7% rre�t casts (whch indr des mT ssmro mle�c $2Z &Cll ❑rect Costs) PD4(project daelopTe t agreerrier $117, Construction Mechanical Design &Bngneering $155,1 Management 0.90 �� M3V $18, 6.9% Controls Windows Water 7.8% 0.4% 4.0% Project Level Costs/Crecits vWo m 3kp Envelope Bond 1.7% Cantingeniy $135,1 Remits $16,21 Garage Lighting MmkAly. (ft & I -Lcboo $7, Figure 1. JCI Project Pricing Percentages. PEA -$45 B Total Project Level Casts $783,181 C ConstruichonProft $259999 D Trial CorstriE ion Price $3,128, Perk nTEnoe Period K/&V Perf. PenodK/&VCcst $42 � I. Period K/&V Profit $4,21 E Perfonn Period Sell Price $46 F Total .JCI Project Sell Price Figure 2. JCI Project Pricing Breakdown by Dollar Amount. Town of Vail Page 3 6/7/2011 7 -1 -3 5. How does Johnson Controls make their profit? In an energy performance contract, the energy services company (JCI) is responsible for the design, engineering, implementation, project management and measurement and verification of the project savings and performance over the term. The total profit for the project is 8.2% of the total project price which is represented in the Town of Vail JCI Pricing Summary represented in Figure 2 above. A profit margin is made on each of the above services listed. Project level costs including bonding, contingencies and permitting do not include profit. The LED lighting mockups were provided at no- charge by JCI while the other lighting mockups were provided at cost. Vail's Energy Performance Contract is a Guaranteed Maximum Price (GMP). The Governors Energy Office contract does not permit JCI to make any additional profit than stated in the contract. If construction efficiencies are gained, the additional funds are returned to Town of Vail in the form of services or cash. The risk of less profit is JCI's. Town of Vail Page 4 6/7/20 11 7 -1 -4 III. Final Project _ R Summary by Site 2 Duno,,a�ParkPailion $ 20,453 $ 3,423 221 Figure 3. provides a 3 Dobson IcePrena $ 169,737 $ 15,511 155.3 breakdown of project costs 4 Fire DepafirerytSb4ion1 $ 41,794 $ 2,558 15.4 and utility and CO savings 6 Library $ 133,671 $ 11,725 84.6 by site. 7 LionsheadTram. Ctr. - Parking Crag $ 568,620 $ 7,525 36.5 9 Overall investment �c�o� 16.8 _ $ 24,501 $ 1,245 _ $3,174,995 12 FbliceDepartinen $ 110,546 $ 6,508 83.7 13 FWicMtAclrninistr $ 23,430 $ 940 7.1 Yearly Savings ($) 14 PlblicV\GrksShop $ 179,890 $ 8,363 85.1 $154,533 15 Bus Ban a $ 73,570 $ 14,276 139.7 16 Buzmrd Paris Homng $ 73,090 $ 3,227 11.3 Savings Over Term 17 Tom Maiaclas Rescleice $ 8,076 $ 546 24 Over the 15 year term, this 19 TinbeerRcIgePpatrer�1.s $ 108,722 $ 12,636 9.3 project will save the Town $258,614 in maintenance, 21 \kil E astlodgin g $ 289 $ 25 0.2 $2.8 million in energy, and 22 Rtkin Creek is 2,109 $ 225 1.8 20,652 in CO2. 23 lnnsbnAck $ 453 $ 23 0.2 24 \kiI DasSchone $ 4,161 $ 641 5.2 Environmental Benefit 26 Core Rarge11 $ 1,103 $ 213 0.7 \kilVllageGerag $ 1,376,897 $ 55,258 584.0 20,652 tons of CO2 equates to: 28 InfonnEtonCenter $ 10,178 $ 2,046 24 29 Sid M.seLm $ 8,840 $ 519 5.3 • 2.1 million gallons of 30 SbphxsF`brk( ) $ 935 $ 16 0.1 gasoline 32 BghomFtrk $ 935 $ 23 0 . 1 • Emissions from 3,673 33 Da,omPek $ 2,911 $ 170 0.7 cars 35 Buifehr Creek Pak (reslr o ) $ 16 $ 49 0.4 • Amount sequestered by 38 C,dfMaintena $ 3,534 $ 205 0.0 480,000 trees 39 TermisCenter $ 16,147 $ 799 7.1 • Electricity use from 40 NahreCenter $ 1,521 $ 64 0.6 2,300 homes 42 VECSn wMeltBoilerRoons $ 101,146 $ 2,261 17.0 43 3PuUicat/firepi1s@\kilullage $ 1,829 $ 301 20 44 \kilTrar mrAonTerminalBldg $ 53,213 $ 2,307 15.7 45 VIII Sheet Res4norrs $ 6,135 $ 387 0.0 46 Chec"ritChaiie $ 195 $ 518 21 Consbrction Sal c Price $ 3,128,696 $ 154,533 1,367.0 Combs cticn Renod M&V $ 46 = JCI Project Sell Price $ 3,174,995 JD Prcject Pa 0„erTime 15.14 FVby0hers @Lions Head Perking $ 57,442 $ 709 9.8 TCVEnergy "ect Totals $ 3,232,437 $ 155,242 1,376.8 TOVFtnject Rebback CX,erTirre 15.25 CQ Tans Sneed O„er 15 Yr Term 20,652 TOVProject Savings Over 15YrTerm UtilitySauings $ 2,863,788 MaintenaiceSauings $ 258,614 Figure 3. Project Cost $ 44'585 Breakdown by Site. Total Savings $ 3,166,987 prgect balameCa)�f15 $ (65,450) Town of Vail Page 5 7 -1 -5 IV. Project Funding All projects qualify for funding from the capital or general fund account balances; however some projects qualify for specific funds. A possible funding scenario follows: $3,232,437 Total Project Cost Capital Projects /General Fund Reserve: $2,135,800 VRA Authority (TIF): $953,951 RETT: $32,964 Timber Ridge Affordable Housing Project: $108,722 Total $3,232,437 By including many equipment replacements in the project, future maintenance /replacements over the next 15 years will not be required, and capital budgets may be reduced. Staff estimates that the following reductions may be made over the 15 year term: Currently within 5 year budget Capital: $670,000 $290,000 TI F: $260,000 $40,000 RETT: $15,000 $5,000 Total: $945,000 $335,000 Recommendation for funding is as follows: Capital Projects: $ 290,000 General Fund Reserve: $1,845,800 VRA Authority (TIF): $ 953,951 RETT: $ 32,964 Timber Ridge Affordable Housing Project: $ 108,722 Total $3,232,437 V. Staff Recommendation Staff recommends that the Vail Town Council direct Staff to proceed to contract with Johnson Controls Inc. to complete the Facility Wide Energy Conservation project in its current revised format. VI. Next Steps If approved, the Facility Wide Energy Conservation construction timeline is as follows: Contract finalization: June 15, 2011 Construction: June 16- November, 2011 Measurement and Verification Period (year 1): Jan., 2012 -Feb. 2012 VII. Attachments A. April 19 Town Council Memo — Facility Wide Energy Conservation Project B. Project Specific Facility Improvement Measures Spreadsheet Town of Vail Page 6 6/7/201 7-1 -6 FIM Matrix FIM Cost Matrix 1.1 1.4 2.1 2.3 3.1 3.2 4.1 4:4 4.8 4.12 5.5 6.1 B.5 87 6.8 6.11 Li hlin Li hlin Water Water Envelope Envelope Conlmis Controls Controls Controls Electrical Mechanic. Mechanic. Mechanic. Mechanic. Mechanic. Allocaletl Site Site All ocaletl Site CO2 Operation Site FIM COSI Pertoona n Utility Project Total Site COSt Savings al Savings Rebates Total ce Period Savings 91 na controls rve inure nnisers e�eY umer Level Cost M, co , Mons) [over atme sa^aflon inaow rmos si n4 ac collars em suiauo �1s[Yr) em) llp9raaes 2 Donovan Pavilion s $ 14.997 $ 5.456 $ 303 $ 20,755 22.1 3422.6 $ 4,217 $ 1,1325 3 Dobson In Arena s s $ 124.459 5 156.3 15510.8 ry,esel s 4 Fire Stationl s $ 30.645 5 15.4 2558.1 6 Library $ 98.014 5 84.6 11]25.8 7 Li ... heatl parking gang, s $ 416.938 5 86.5 ]525.] 9 Color.d. West s $ 17.965 5 16.8 12,04.5 12 Police Departments $ 81.057 5 83.7 6507.13 13 Public Works Atlmin s $ 17.217 5 7.1 940.1 14 Public Works Shop s $ 131.904 5 86.1 836 us 2- 15 B Bam and Wash s s $ 53.945 5 s 139.] 14276.3 s 16 B-nd Park Housing $ a S $ 53.593 $ 199497 $ 1,082 $ 74,1]1 11.3 32213.9 § 113,4813 § 2,438 17 Toxin Managers Resitlences $ 5.922 $ 2.154 $ 120 $ 8,196 2.4 .62 § 2,94] § 413 tt�y 19 Timber Ridge Apartments $ ]9.]20 $ 29,002 $ 1.609 § 110,331 9.3 121335.5 § 8,038 § 21 Vail East l.dging s $ 212 $ 77 $ 4 $ 293 0.2 2A.9 $ 1328 $ 46 22 Pitkin Creeks $ 1.546 $ 563 $ 31 § 2,140 1.8 225.9 $ 2,929 $ 111 23 Innsbruck s $ 332 $ 121 $ 7 $ 460 0.2 22.9 $ 1327 $ 56 24 Vail Das SO... 1 116, $ 3,051 $ 1.110 $ 62 $ 4222 5.2 1340.13 $ 1,255 $ 169 26 Dbre Range ll s $ 809 $ 294 $ 16 $ 1,119 0.7 213A $ 941 $ 141 27 WC parking gang, s 111,61, 1 $ 1,009.604 $ 367293 $ 20.376 $ 1,397,273 584.0 5525].] $ 77,383 $ 10,000 28 Information Centers $ 7.463 $ 2.115 $ 151 $ 10,329 2.4 2 11413.1 $ 514 $ 29 Ski Mw,,, 611, $ 6.482 $ 2.358 $ 131 $ 8,970 5.3 518.6 $ 8,151 $ 30 Stephens Parks Ill $ 685 $ 249 $ 14 $ 949 0.1 16.3 $ 271 $ 135 32 Bighorn Park $ 68, $ 685 $ 249 $ 14 $ 949 0.1 23.3 $ 271 $ 102 33 Donovan Parks $ 2,134 $ 116 $ 43 $ 2,954 0.7 170A $ (172) $ 331 35 Buffer Creek Parks $ 11 $ 4 $ 0 $ 16 0.4 49.3 § 755 § 19 38 301 Maintenance s $ 2.592 $ 943 $ 52 $ 3,587 0.0 2047 . $ 681 $ 69 s Cent 39 Tenniers 6 ill 1 1711 1 1116 $ 11.840 $ 4.307 $ 239 $ 16,386 7.1 7%.3 $ 2,470 $ 1,280 40 Nature Center 1 171 1 Ill $ 1,115 $ 406 $ 23 $ 1,544 0.6 133.13 $ $ 105 42 sr.-It Systems 1 71117 1 1141 $ 74.165 $ 26.961 $ 1,497 $ 102,1343 17.0 2260.7 $ § 43 Public aWfi. pits I $ 1.341 $ 488 $ 27 $ 1,856 2.0 300.5 $ $ 307 44 Terminal B.ilding 1 7771 $ 39.018 $ 14.195 $ 787 $ 54,000 15.7 2306.7 $ 1,168 $ 45 az tot s Wa115treet Resttooms $ 4.498 $ 1.636 $ 91 $ 6225 0.0 3872 $ 948 $ 46 Checkpoint Charlie s $ 143 $ 52 $ 3 $ 198 2.1 517.9 § 81 $ 5% s I 12M != ^7,33 $ 1i7_ - - 7420$ - ' ' S 2,294,103 $ 834.593 $ 46.299 $ 3,1]4,995 1367.0 $ 154,533 $ 258,614 $ 28,170 Allocaletl Project Level Cosl $ 642.937 $ - $ 51.682 $ - $ 22.315 $ 4.925 $ 6.617 $ 53.381 $ 39.966 $ 772 $ - $ - $ - .134 $ 488 $ 834,593 $ 834,593 Allocaletl Perfortnence Periotl M &V $ 35.667 $ - $ 2.867 $ - $ 1.238 $ 273 $ 367 $ 2.961 $ 2217 $ 43 $ - $ - $ - 340 $ 27 $ 413,299 -1 Audit Cos. $ 96,299 Rebate Total FIM Cost $ 2,"5,890 $ $ 196,609 $ . $ 84,893 $ 18,]35 $ 25,1]3 $ 203,076 $ 152,042 $ 2,937 $ $ $ . 3,337 $ 1,856 $ 3,174,995 $ 3,1]4,995 $ 3,515 FIM CO2 Savings Mons) 978.7 11.3 1.7 56.4 31.6 10.7 312 116.8 93.7 2.9 0.0 0.0 13.0 .0 2.0 1313].0 1367.0 FIM Utl ity Sings lt r) 81,8138 $ 815 $ 20,599 $ 4,127 $ 4,352 $ 910 $ 4,057 $ 13,253 $ 12,1352 $ 236 $ 13,540 $ � $ 1,1395 ,125 $ 301 $ 154,533 $ 154,533 FIM Operational Savings �overterm) $ MAU $ $ 19,092 $ (67 $ . $ . $ . $ 49,083 $ 13,13163 $ $ $ $ 5,422 . $ $ 258,614 $ 258,1314 Rebates $ 24,804 $ $ 164 $ - $ 1,474 $ 105 $ 90 $ . $ 512 $ $ $ $ - 294 $ 307 $ 28,170 - 1Audit Rebate § 3,515 $ 31 7 -_' -1 MEMORANDUM TO: Vail Town Council FROM: Community Development and Public Works Departments DATE: April 19, 2011 RE: Facility Wide Energy Conservation Project Update I. PURPOSE The purpose of this memo is to provide background information for the presentation of the overview of the results of the Town of Vail Facility Wide Energy Conservation Project. II. BACKGROUND December, 2010 the Town contracted with Johnson Controls Inc., an Energy Services Company (ESCO), to perform energy audits on all Town -owned facilities and to create a detailed energy efficiency implementation plan, or "performance contract" to guide the Town in selecting priority upgrades to individual building systems. In addition to systems upgrades, the Town required that the energy efficiency implementation plan included innovative technology, renewable energy, and advanced sustainability and design principles that significantly decrease the Town's overall carbon emissions and improve building operation and efficiency. Sustainability Town of Vail 2006 According to the Town's Environmental Sustainability Global Warming Pollution Strategic Plan adopted January 2009, "The Town of Vail by Sector aims to serve as a nationally recognized leader in sustainability through a commitment to community partnerships and balanced stewardship of human, financial i and environmental resources in policy and daily operations. AL In effort to achieve this standard, the Strategic Plan Miscellaneous Buildings includes the goal of reducing overall community energy a,a3i tons ofCO2 »% consumption over the 2006 baseline by 20% by 2020, objectives 1 and 3, respectively, state: "Track and reduce Town of Vail municipal and community energy use and greenhouse gas emissions ", and "Implement energy efficiency and conservation measures for Town facilities ". Figure 1 Buildings are the largest source (71 %) of the Town's energy consumption and greenhouse gas emissions (Figure 1), contributing over 8,400 tons of CO into the atmosphere in 2006 (GHG emissions as of 2009 were 9,497 for the facilities included in this project). Therefore, an energy conservation project that addresses all building systems as one project is the most efficient and effective way to approach energy efficiency and sustainability on a municipal level. For example, an immediately obvious, or "low- hanging fruit' option to upgrade to a facility might be to switch all track lighting to energy efficiency bulbs. While this may be true, by looking at the whole building system 1 6/7/2011 7 -3 -1 as one project and addressing it as such, we may find that when we reduce the lighting load, the cooling requirements of the building are reduced, and that solar shades may be a good option to decrease the cooling load. We may also find that computers are on 24- 7 and that ventilation requirements for healthy air are not met. While assessing the roof we may find that missing insulation could be adding to the heating requirement and due to the south - facing orientation, a solar thermal system could reduce the hot water needs significantly. While the lighting provides an immediate payback, we achieve greater, more savings and long -term sustainability through an integrated approach, described in more detail below. Performance Contracting Energy Performance Contracting (EPC) is a turnkey service sometimes compared to design /build construction contracting which provides customers with a comprehensive set of energy efficiency, renewable energy and distributed generation measures accompanied with guarantees that the savings produced by a project will be sufficient to finance the full or partial cost of the project. A typical EPC project is delivered by an ESCO and consists of the following elements: • Turnkey Service The ESCO provides all of the services required to design and implement a comprehensive project at the customer facility, from the initial energy audit through long -term Monitoring and Verification (M &V) of project savings (Vail's project is proposed to be measured and verified at years 1 -3, and again at years 6 and 8 to ensure savings over the term, while balancing the cost of the M &V). • Comprehensive Measures The ESCO tailors a comprehensive set of measures to fit the needs of a particular facility, which can include facility improvements such as energy efficiency upgrades, renewable energy (solar, wind, and geothermal sources), water conservation, and materials and operations. • Project financing The ESCO may arrange for long -term project financing that is provided by a third -party financing company. Financing is typically in the form of an operating lease or municipal lease. Staff proposes the Vail project is self - financed. • Project Savings Guarantee: The ESCO provides a financial guarantee on the energy savings achieved through the implementation of the energy conservation measures, which are measured and verified using industry standard protocols. Projects are designed so that the savings produced by the project are sufficient to cover the cost of project financing for the life of the project. If for some reason savings are not achieved, the ESCO will pay the Town the difference. As part of this process, the Town also worked with the Governor's Energy Office (GEO) Performance Contracting Program, through which the Town signed an MOU with the GEO agreeing to the following: • Select an ESCO from CEO's current pre - qualified list, using a secondary selection process that fulfills The Town's procurement policies. • Assign members to the facility project team including operations, maintenance, financial and upper management personnel • Ensure appropriate personnel attend project development meetings • Provide access and escort to buildings under reasonable conditions 2 6/7/2011 7 -3 -2 • Provide information as needed for the feasibility study, the Technical Energy Audit, Measurement and Verification, and other project development activities • Work with ESCO to develop /refine project parameters • Review /approve ESCO proposals, designs, and reports • Ensure recommendations of the GEO EPC Program during reviews are addressed • Make payments for ESCO services per contract terms • Make arrangements for project financing • Provide project management In return, the GEO agreed to the following responsibilities: • Help the Town develop and initiate a performance contracting project • Facilitate the performance contracting process, to help ensure commitments are met by both the Town and the ESCO • Provide technical guidance to the Town, attending on -site meetings between the Town and ESCO • Help develop the GEO EPC Program Standard Technical Energy Audit and Energy Performance contracts with Town amendments as needed, for each project • Review audits, proposals, calculations, contracts, and measurement and verification reports • Monitor project implementation • Identify solutions to mediate any conflicts between the Town and ESCO Project Objectives Maintaining high levels of service while operating in an energy efficient manner is a challenge for resort communities with traditional energy sources and current systems. Therefore, the project objectives were to: • Use the energy audit information to identify and prioritize projects that resulted in the most environmental impact and cost savings, and apply the accumulated annual savings toward additional projects. • Produce an energy efficiency implementation plan that significantly contributed to the Town goal of a 20% energy and emissions reduction, and provided a payback period of 15 years. • Ensure that implemented projects allow the Town to provide a standard for similar resort communities. Project Scope All Town -owned facilities were initially included in the scope of the project. The following broad range of systems included: • Mechanical Heating, ventilating and cooling (HVAC) systems, energy management and control systems, domestic hot water systems, distribution systems, etc. • Plants Distribution systems, co- generation (heat and power) systems. • Lighting: Indoor and outdoor lighting systems, lighting controls, day - lighting strategies. 3 6/7/2011 7 -3 -3 • Building Envelope Windows, insulation, weatherization, etc. Specialty Systems: kitchen equipment, renewable energy systems. • Water and Sewage: Automatic controls, low -flow faucet aerators, low -flow toilets, and irrigation system controls or modifications. III. PROJECT DETAILS Over the past 14 months, Johnson Controls has worked with a Staff team consisting of the Town's Public Works Director, Environmental Sustainability Coordinator, Facilities Manager, Fleet Manager, and Vail Recreation District Facilities Manager to complete an energy audit on 41 buildings, of which 37 are included in the recommended project scope (Figure 1). Each building was visited by the JCI engineering team multiple times to install data loggers to track energy use, interview employees, assess the building envelope (gaps where air infiltration may occur) and analyze equipment. From that assessment, a phase 1 recommended project list was developed and vetted by Town staff. Projects were assessed based on the following criteria: • Helped achieve environmental impact and carbon emissions goals • Utilized the best, proven, and most appropriate available technology • Reasonable to maintain, or reduced labor and maintenance time • Within the whole project scope, provided a reasonable return on investment During the detailed energy audit phase, JCI's engineers carefully evaluated each building, and a specialist studied potential energy efficiency improvements. For example, lighting audits and designs were performed by lighting engineers. Likewise, heating and cooling system improvements were studied and engineered by mechanical engineers. During the audit phase, energy conservation measures (ECMs) were selected from a longer list of all potential energy saving improvements that could be made in a particular building. Economically viable ECMs (those that can pay for themselves) were selected. The implementation cost was determined through a bidding process and the potential energy cost savings were then calculated for viable projects through a combination of modeling and past usage data. This project is a co- authored solution developed by the Town and Johnson Controls with oversight by the Governors Energy Office. The benefit of performance contracting reduces the risk to the Town of implementing energy conservation projects. The savings estimates are very conservative and the facility improvements from the project positively benefits Vail both financially and environmentally. Town Staff along with the Town Manager and Finance Director have also participated in a series of project workshops that included Project Measurement and Verification, Project Savings, Energy Baseline Analysis and Financials, to fully understand the costs and benefits of each facility improvement measure, payback, and environmental impact (water, greenhouse gas emissions, natural gas and electricity). Performance Contracting — The Process of "Bundling" Energy conservation measures that do not stand on their own on the basis of reasonable return on investment alone, (leaving all other aspects such as environmental sustainability aside) were included in the whole project, or "bundle" as long as the payback of the entire project was within 15 years. These ECMs were selected because they brought some greater benefit to the town or resolved a particular comfort issue. 4 6/7/2011 7 -3 -4 Replacement of old equipment with new high -tech equipment or renewable energy projects that eventually produce free energy but have longer payback times, are examples of this strategy. In these cases, the project as a whole must have been self - funding to include any longer payback items. By utilizing this strategy, we are able to avoid the trap of only addressing energy conservation items that are considered "low - hanging fruit ", only to never be able to justify projects with longer paybacks that achieve long -term sustainability and piece - mealing upgrades to systems, costing the Town more in the long term. For example, another ski resort in the region began the process of upgrading facilities several years ago, taking advantage of low- hanging fruit items. The community has recently finished an energy audit and project list similar to Vail's, and the recommended measures now include renewable energy such as waste -heat recovery and high - dollar value controls and lighting. In order to make this project financeable and pay back in 23 years, the community is now investing nearly $1 million to buy down the cost of the project. It is the intent of this project to ensure that the Town keeps payback periods within equipment lifetimes, so we may continue to leverage savings to increase sustainability in the future. 5 6/7/2011 7 -3 -5 Project Overview: Figure 3 illustrates the energy improvement measures identified for the facilities included in the final proposal. H sing X X X X X X \a drisers X X X X X 'U,A L :: x Mricipw Mricipal Hikir X X misers 0 ---ft relocate M%ekp—t baseboard X had Mice x Dxnm Paulin• x x litrary x x Plfiic Works PdblicWor'a ;` x x Folic Works s X HsB3m x x x Fire FireSWic X X misers FireStatk x Ptiridng and Trar►sportatim Carters r_ x x x WiRARageCar< x Odoradovvast x x x bons F bad Garzz x x vail mw Irfan cnO3ter& Sid Mserm x x NM Dbbsm loe -KId Solar X x x g-ades OR0 use9ikirt, x Terris Carter x G,nnastics 03r x x rejet b-n - lers ✓Mlt Sys. X Figure 3. Energy Conservation Project — Included Facilities and Measures. Note that several buildings are in discussions for remodel projects, such as the golf course club house, and will not be included in the project if the energy projects in these facilities are longer than the expected remodel time frame. In addition, projects such as the Creekside Apartments are already scheduled and budgeted for remodeling and will include energy efficiency improvements but are therefore excluded from this project. 6 6/7/2011 7 -3 -6 Utility Costs, Savings, and Environmental Impact for Audited Facilities By bundling the projects as proposed, the Town will achieve significant savings in electricity in particular, nearly $100,000 per year achieving over a 24% reduction in cost and 30% in carbon emissions. P Electrical Energy (kWhNr) 7,141,561 5,468,323 1,673,239 23% Electrical Demand (J 12,147 1,958 14% Natural Gas (Therrill 831,950 _ 793,531 38,419 5% Water Sewer (kGaINr) 15,822 13,017 2,805 18% Electrical Energy (kWh $Nr) $396,719 $301,089 $95,630 24% Electrical Demand (kW $Nr) $90,953 $78,149 $12,805 14% Natural Gas (Therms $Nr) $473,424 $446,574 $26,850 6% Water Sewer (kcal $Nr) $127,129 $105,626 $21,503 17% Totals ($Nr) $1,088,226 _ $931,438 1 $156,788 14% notes: * baseline utility costs exclude fixed fees. All -in 2010 utility spend = $1,130,665. ** cost savings are based upon the baseline (2010) utility rates -Post :11111 iii J ill Ili Baseline • ns/Yr) (TonslY 4L Electrical Energy Emissions 4,124 2,891 1,233 30% Natural Gas Emissions 5,343 5,167 176 3% Totals ($Nr) T 9,467 _ 8,058_ 1,409 15% Figure 3. Utility Baseline and Savings Analysis. Over $160,000 in utility savings alone from the identified energy conservation measures will be returned to the following funds as follows: Facility saving's Percentage of Total Savings VRD $16,857 10.5% TJ $12,636 7.8% RETT $938 0.6% General Fund $130,818 81.1% Cost and Payback Period • Total project cost: $3,294,408 o Includes project management, engineering and measurement and verification: funded through energy and operational savings. • Rebates: $43,695 from various agencies have been confirmed. • Payback period: 14.6 years (See Figure 4 for cash flow analysis) 7 6, %7 '20 7 -; -7 Lib Pro Operational Implementation Utility Savings Rebate Savings Price Year 0 $ 3,294,408 $ - $ - $ $ (3,294,408) Year $ - $ 161,249 $ 19,834 43,695 $ 224,778 (3,069,630) Year $ $ 165,891 $ 25,522 $ $ 191,412 (2,878,217) Year $ $ 170,671 $ 26,287 $ $ 196,959 (2,681,259) Year $ $ 175,595 $ 25,752 $ $ 201,347 (2,479,912) Year $ $ 180,667 $ 25,161 $ $ 205,828 (2,274,084) Year $ $ 185,890 $ 23,051 $ $ 208,941 (2,065,143) Year $ $ 191,271 $ 20,791 $ $ 212,062 (1,853,081) Year $ $ 196,813 $ 19,865 $ $ 216,678 (1,636,403) Year $ $ 202,521 $ 18,865 $ $ 221,386 (1,415,017) Year 10 $ $ 208,401 $ 17,788 $ $ 226,188 (1,188,829) Year 11 $ $ 214,456 $ 16,628 $ $ 231,084 (957,744) Year 12 $ $ 220,694 $ 17,065 $ $ 237,758 (719,986) Year 13 $ $ 227,118 $ 17,513 $ $ 244,631 (475,355) Year 14 $ $ 233,736 $ 17,972 $ $ 251,708 (223,647) Year 15 $ $ 240,552 $ 18,443 $ $ 223,647 35,348 Sum of Escalation Years $ 3,294,408 $ 35,348 Figure 4. 15 year Cash Flow Analysis: Project payback = 14.6 years, the point at which projects are paid for and full energy savings are realized. Guaranteed savings are determined based on a combination of modeling and past usage. Note: a conservative 3% escalation (typical escalation is between 3 -5 %) in all energy utility costs has been applied. A "guarantee factor" is included for all projects. For example, if lighting in the parking garages are expected to be on 24 -7 without manual control, that project would be guaranteed at about 95 %, because the ESCO is certain of the savings, whereas thermostats and controls may be overridden by staff, so they may be guaranteed at 80 %. Therefore, actual savings will more than likely be higher than the guaranteed amount. Possible Project Funding All projects qualify for funding from the capital or general fund account balances, however some projects qualify for specific funds. A possible funding scenario follows: $3,294,408 Total Project Cost • Capital Projects /General Fund Reserve: $2,172,000 • VRA Authority (TIF): $973,000 • RETT: $40,000 • Timber Ridge Affordable Housing Project: $110,000 Total = 3,295,000 In addition to the $3.2 million project, $57,000 for two solar PV projects have been designed and bid at the Transit and Welcome Centers. This investment comes with $12,000 worth of rebates and are also eligible for the TIF fund. 8 6/7/2011 7 -3 -8 By including many equipment replacements in the project, future maintenance /replacements over the next 15 years will not be required, and capital budgets may be reduced. Staff estimates that the following reductions may be made over the 15 year term: • Capital: $770,000 • TIF: $260,000 • RETT: $20,000 Total: $1,050,000 Local Contracting Policy All sub - contractors for the project have been vetted and selected through a competitive bid process in which local contractors were to be included. The two major components of the project are mechanical and electrical and local contractors were selected for both trades. IV. NEXT STEPS Staff will follow up on outstanding issues and questions and return to the Vail Town Council in May, 2011. V. ATTACHMENTS Attachment A — JCI Energy Project Case Studies 9 6/7/2011 7 -3 -9 ATTACHMENT A CASE STUDIES Johnson Controls proudly presents three (3) our most relevant and recent projects that started with being selected to provide a Technical Energy Audit (TEA) through development to providing Energy Performance Contracting Services. Our projects represent a holistic facility improvement project. The high performing equipment and other facility improvements are coordinated, installed and commissioned by a single project management team to ensure cohesiveness and 100% satisfaction with the facility investment. Furthermore, the customer controlled contingency budget protects against unforeseen change orders, adding to customized and turn -key experience of an energy performance contract. The Federal Correctional Institution (FCI) Englewood Chose Johnson Controls to implement a $6 million critical and comprehensive few quick facts about Johnson Controls: facility upgrades, using guaranteed energy savings financed through an energy performance contract. 41 2010 marks our 125th anniversary in the building controls industry. The installed Solar Water Heating System generates a renewable resource 0 we're the largest ESCO in North America that feeds into the Domestic Hot Water (DHW) system. holding a 22.5% share of the performance contracting market — more I he City of Lai, selected Johnson controls to fulfill a $1.2 million 10 year than twice that of our nearest contract that saves the City just shy of $100k per in annual savings. The savings were realized through upgraded lighting, mechanical motors, and 0 We are actively managing 25 projects in correctional facilities with $285 million controls, plus the addition of solar thermal and solar photovoltaic systems. in outstanding guarantees. Tbp C;tv of (4rand r imf-Or was guaranteed $74,000 per year in annual ' ' hundreds o osed for this project savings through a Johnson Controls Energy Performance Contract. Through I collective experience in performance the installation of new mechanical systems, lighting upgrades, building contracting for government facilities. envelope improvements and solar thermal and solar photovoltaic systems. 0 We were named 2010 ENERGY STAR Grand Junction also successfully utilized the SEEC staff behavioral training Partner of the Year. modules. • City of Lafayette Lafayette, CO Project Identification City of Lafayette Contact Curt Cheesman Municipal facilities Information Facility Management (303) 665 -0469 Project Type Performance Contract Project Size 9 buildings; 134,000 sq. ft. Project Dollar Amount $1,200,000 Source of Third party financed. Funding Johnson Controls worked with the City to secure Project Annual Savings $105,000 project funding. Project Dates Audit: 2007 Contract 10 -year term. Construction: 3/08 -12/08 Terms Project Personnel Jonathan McEntire, PDE Project Completed on schedule. 10 6/7/2011 7 -3- 10 Robert Phillips, PM Schedule List of Improvements • Traffic lighting retrofits ® HVAC system retrofits and • Building automation and controls replacements sequence optimization a Variable frequency drives and . Building envelope improvements high efficiency motors . Solar PV and solar thermal . Lighting upgrades c;IFY o Grand junction City of Grand Junction Grand Junction, Colorado Project Identification City of Grand Junction Contact Jim Stavast Information Director of Facilities (970) 244 -1569 Project Type Performance Contract Project Size 39 buildings 340,935 sq. ft. Project Dollar Amount $2,046,342 Source of Third party financed. Funding Johnson Controls worked with the City to secure Project Annual Savings $74,000 project funding. Project Dates Audit: 03/08 -03/09 Contract 15 -year term. Construction: 04/09 -02/10 Terms Project Personnel Erin Ells, PDE Project Completed on schedule Craig Plomondon, PM Schedule List of Improvements . Building Controls ® Lighting and Plumbing retrofits . High Efficiency Boilers ® Solar PV & Solar Thermal 11 6'7?011 7 - -11 •� Qnuru THE LUXURY OF LED Gerald R. Ford 01 Parking Gara Beaver Creek, C 0. World Famous Ski Resort Turns to Qnuru for LED Parking Garage Lighting Retrofit A world famous ski resort whose marketing motto exclaims, "Ain't Exactly Roughing It," Beaver Creek and its glamorous neighbor, Vail Resort, are as intent on implementing en- ,, vironmental sustainability programs as they are adept at providing vacation fun. Both .4WM 6 resort towns aggressively recycle, make use of the latest water conservation technologies About Beaver Creek and are converting their bus fleets to hybrid Beaver Creek is an international four- electric diesel vehicles to help spare the frag- season destination complete with 25 ile mountain air. ski lifts, 1,800 acres of skiable terrain, two Robert Trent Jones designed golf The area's hospitality providers are also courses, and miles of hiking and river lending their support to lowering the area's rafting. In 2010, Beaver Creek and carbon footprint. The Beaver Creek Lodge, a Vail Resorts were selected by the In- 4 -star luxury eco- resort, recently imple- ternational Ski Federation to host the mented a wind power system to generate the 2015 World Alpine Ski Champion- electricity needed to power its facilities. And ships for the 3 time. From heads of Vail Valley's proposed Ever Vail will be the i t' state to heads of households, Beaver largest LEED - certified resort project in North Creek is a place that people visit to America, complete with nature- sensitive leave the world behind and enjoy pri- roofs covered with soil and planted with local . vacy and an intimate mountain setting. grasses to reduce solar heat retention, insu- late the buildings and aid in drainage. W ebsite Beaver Creek Resort http: / /www.beavercreek.com In 2010, Mirage Electric ap- proached Qnuru about retrofit - Beaver Creek Parking Garage ting Beaver Creek's Gerald R. LED Lighting Retrofit Project Ford Hall parking garage with • 180 188 watt high pressure so- LED lighting. Named in honor dium fixtures retrofitted with 27 of the 38 president who re- watt Qnuru Vector Ribera LED tired to the resort town, the bulbs. two- level, underground park- * 81 % reduction in lighting energy ing facility operates its lights consumption. 240 in order to provide park- * Embedded intelligent processor ing for the neighboring Park capabilities provide for compli- Hyatt Beaver Creek Resort, as mentary control systems. well as the large influx of day • No maintenance for 5 -years with skiers and summer visitors. Noribachi- backed warranty. Mirage and Qnuru replaced g Q p Qnuru 27 Watt LED Replacement of • Up to 100,000 hours rated life. 180 high pressure sodium Former 188 Watt High Pressure Sodium Bulbs • Qualifies for LEED credits. bulbs which consumed 188 watts of energy with Qnuru's Vector Ribera 27 watt LED retrofit bulbs. "Because reusing and recycling resources is an important part of the area's sustainability focus, we wanted to retrofit the existing luminaires rather than trash them," (cont.) Page 1 of 2 12 6/7/2011 7 -3- 12 •0 Qnuru THE LUXURY OF LED mr ��� Gerald R. For Parking Garag Customer Case Study Beaver Creek, C About Qnuru commented Steve Wickum, Master Electrician and Qnuru, a division of Noribachi, is a solid head of Mirage Electric. state lighting technology innovator. Our As a result of the LED lighting retrofit, the parking intelligent lighting solutions deliver un- garage's lighting energy cost dropped by 81% and paralleled light quality while reducing long -term maintenance expenses will virtually grid dependency to positively impact disappear due to the longevity of LED technology your bottom line. We design and manu- and Qnuru's 5 -year product warranty. But equally facture brilliant lighting solutions, includ- important as the operating cost savings was the ing Vector high wattage LED retrofit dramatically improvement in the lighting quality. solutions for the commercial and indus- The garage's former high pressure sodium bulbs trial markets; Prism low wattage LED cast a hazy yellow -hued light that was unwelcom- bulbs for homes and offices; the Matrix ing and confining. In contrast, the LED retrofit product line of LED -based luminaires; bulbs from Qnuru emit daylight - quality white light and the Helix family of solar - powered that is far cheerier and more secure for the garage's LED luminaires. Qnuru products are ETL guests. "LED lighting transformed the ambience Certified to UL and CSA Standards and of that underground space from night to day," designed, assembled and tested in the U.S. For more information about how we commented Wickum. can take your lighting light years ahead, Finally, Wickum selected Qnuru's lights because 81% Energy Savings with LED visit www.gnuru.com. of the ability to combine them with control sys- Lighting Retrofit; 5 -Year tems such as motion sensors and photoelectric con - Warranty Contact: trols to further reduce energy. "I wanted the op- • Toll -Free: 877 -553 -2810 tion to s« itch the lights off during the dead of night and turn them back on if a guest were • Main: 505- 341 -2809 to arrive unexpectedly, which is not possible with high pressure sodium bulbs which take • www.gnuru.com too long to warm up to full illumination. One of the incredible benefits of LED lights is • www.noribachi.com they turn on instantaneously." 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With LED lighting and Qnuru's high ® quality retrofit solutions, i g h t i n g Y w e were able to take an- other step towards reduc- facts � � ing greenhouse gas etnis- LED Product Partner t _ sions and being fman- �` cially responsible citi- �da cr ! ti'� aOERrf� zees." y � VTCRNATION4l ARK -SKY E AS•ClsTSON COTPIUS 4 Beaver Creek Resort Area Page 2 of 2 Qnuru Products are ETL Certified to UL and CSA Standards 6/7/2011 7 -3- 13 TOWS' Of VA.1 0 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Dinner Break 6/7/2011 K � TOWN OF VA1 0 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Citizen Participation 6/7/2011 K � TOWN OF VA10 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: 2011 Vail Youth Recognition Award Presentation PRESENTER(S): Scott O'Connell ATTACHMENTS: 2011 Youth Recognition Awards 6/7/2011 *VAILTOWN Office of the Mayor 75 South Frontage Road Vail, Colorado 81 G57 970 - 479 -2106 Far: 970-479-2157 www.vailgov.com May 25, 2011 Dear Kendall, Congratulations! It is a tremendous pleasure to be able to announce that you are the Vail Mountain School recipient of the Town of Vail's Youth Recognition Award for 2011. The purpose of this award is to recognize and reinforce outstanding achievement by youth of the Upper Eagle Valley; both for their individual achievements and as role models for their peers. You most certainly exemplify the criteria used as a basis for this award. I am pleased to inform you that this Youth Recognition Award also carries with it a $1,000 scholarship. Again, congratulations on your award. Sincerely, TOWN OF VAIL z4v-e4z; Dick Cleveland Mayor 6/7/201 `A)REj Y(=f -,PD PAPER TOWN *VAlUj Office of'the Mayor 75 ,South Frontage Road fail, Colorado 51657 970 -47 -2106 Fax: 970 -479 -2157 www. vailgov, corn May 25, 2011 Dear Jessica, Congratulations! It is a tremendous pleasure to be able to announce that you are the Battle Mountain High School recipient of the Town of Vail's Youth Recognition Award for 2011. The purpose of this award is to recognize and reinforce outstanding achievement by youth of the Upper Eagle Valley; both for their individual achievements and as role models for their peers. You most certainly exemplify the criteria used as a basis for this award. I am pleased to inform you that this Youth Recognition Award also carries with it a $1,000 scholarship to the college of your choice. Again, congratulations on your award. Sincerely, TOWN OF VAIL ZL44941 Dick Cleveland Mayor 6/7/201 G ) Rf.yTf%FIl PAPER MEMORANDUM TO: Dick Cleveland Mayor, Town of Vail FROM: Scott F. O'Connell President, Vail Valley Exchange DATE: May 25, 2011 RF: Vail Youth Recognition Award Recipients: Battle Mtn. I I i gh School — Jessica Law Vail Mtn. School — Kendall Deighan The Town of Vail has created an annual Vail Youth Recognition Award to be given to a qualified recipient, one each from Battle Mountain High School and the Vail Mountain School. Listed below are the basic components for this award: I. Purpose I1. Organization III. Criteria IV. Process V. Award I. PURPOSE The purpose of the award is to recognize and reinforce outstanding achievement by youth of the Upper Eagle Valley, both for their individual achievements and as role models for their peers. The Vail Town Council created this award to acknowledge and reward students from our community schools. II. ORGANIZATION The Town of Vail will solicit recipients from the administration/ faculty of both Battle Mountain and the Vail Mountain School. Each school's administrationlfaculty should nominate one student and be personally aware of the nominated student's achievements and citizenship efforts. The Vail Town Council must then accept the nominee. The student nominated from each school should be a resident of the Town of Vail. In the event a qualified applicant from within the Town of Vail boundaries cannot be proposed by the school, consideration will be given to an 11 th grader within the RE50J school district and attending Battle Mountain High School or the Vail Mountain School. 6/7/2011 10 -1 -3 III. CRITERIA It is extremely important that the school select a candidate who has fulfilled all the criteria to the highest degree. The Council feels this is a special award and the criteria will be strongly adhered to in the review process. It is important the nominee have enough life experience to have distinction in several areas, not just one or two. Therefore, the more information submitted, especially supplemental information such as newspaper clippings, copies of awards, statements from other individuals, and so on, the better. a. The applicant must be a resident of the Town of Vail and a resident of the Eagle County School District enrolled either as an 1 Ith grader at either Battle Mountain or the Vail Mountain School as a full -time student. In the event an appropriate candidate from within the Town of Vail boundaries cannot be found, consideration will be given to a full -time student who is a resident in RF.50J. b. In addition to academic excellence, the applicant shall have accomplished something special through athletics, civic activities, fine or the performing arts. C. The applicant must exemplify ideals that set standards for other students in all facets of their lives. d. The applicant cannot be older than nineteen (19) years of age. IV. PROCESS Candidate nominations (one from each school) must be received based on the criteria supplied by the Vail Town Council. Based on these applications, the school will present its nomination to the Vail Town Council. The school's nomination must be received by the Town Council no later than 5:00 p.m, on Friday, May 13th, 2011. A representative of the Council will then review the candidates and grant final approval prior to notification of the recipient. Applications may be mailed or hand - delivered to: Vail Valley Exchange Youth Recognition Award CIO Pam Brandmeyer Town of Vail 75 S. Frontage Road Vail, CO 81557 V. AWARD Awards will consist of engraved plaques bearing the recipients names to be placed on permanent display in the Vail Municipal Building, as well as a $1,000 scholarship to the college or university of their choice. The Award will be presented to the recipients by the Council representative or Council member at the recipient's annual school awards ceremonies each spring. Additionally, the award designees will be introduced to the community and recognized by the Town Council at an evening Vail Town Council meeting on June 7''' 2011. 2 6/7/2011 10 -1 -a TOWN OF'VAQ I VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Forest Service Wildland Mitigation Projects Update - Eagle /Holy Corss Ranger District PRESENTER(S): David Neely, U.S. Forest Service ACTION REQUESTED OF COUNCIL: Information update regarding various projects in the Forest Service has planned in areas adjacent to the Town of Vail. This will be an opportunity for questions and clarifications from Council and the public. BACKGROUND: Dave Neely will share expectations /objectives for upcoming hazard tree mitigation work planned for Red Sandstone, Piney, Red and White and Buffehr Creek Roads. Additionally, expectations /projections will be discussed regarding the upcoming fire season and how the National Fire Policy shapes their approach to managing fire for multiple objectives. ATTACHMENTS: Forest Service Memo 060211 Forest Service Projects 2011 6/7/2011 TO: Vail Town Council FROM: Dave Neely, District Ranger, U.S. Forest Service DATE: June 2, 2011 RE: Forest Service Wildland Mitigation Projects Update — Eagle /Holy Cross Ranger District A presentation will be shared discussing expectations and objectives for upcoming hazard tree mitigation work planned for areas adjacent to the Town of Vail; Red Sandstone, Piney, Red and White and Buffehr Creek Roads. Additionally, expectations and projections will be discussed regarding the upcoming fire season and how the National Fire Policy shapes the U.S. Forest Service's approach to managing fire for multiple objectives. 6'7'2011 11 - I - I USFS Hazard Tree Removal Projects North of Vail June 2, 2011 Project Location Timing What to expect Contractor FSR 700 Red Forest Service Work expected Traffic delays Enviro Land Sandstone Road Boundary near to start in June along road M -F. Management, Hazard Tree Vail to Moniger and continue Road closure Whitewater, CO Removal Park, through August. from 10 a.m. approximately 14 through 2:30 miles p.m. FSR 701 Piney Red Sandstone Work expected Traffic delays Enviro Land Road Hazard Road to Piney to start in June along road M -F. Management, Tree Removal River Bridge, and continue Road closure Whitewater, CO approximately through July. from 10 a.m. 2.1 miles. through 2:30 p.m. FSR 734 Red Sandstone Work expected Traffic delays Pending Award Red/White Road Road to to start in July along road M -F. Hazard Tree Red/White 4WD and continue Road closure Removal road, through August. from 10 a.m. approximately through 2:30 3.1 miles. p.m. FSR 787 Buffehr Red/White road Work expected Traffic delays Pending Award Road Hazard to end, to start in July along road M -F. Tree Removal approximately and continue Road closure 1.6 miles. through August. from 10 a.m. through 2:30 p.m. FSR 700 Red Moniger Park to Work expected Traffic delays Pending Award Sandstone Road Muddy Pass, to start in July along road M -F. Hazard Tree approximately 15 and continue Road closure Removal miles. through from 10 a.m. September. through 2:30 p.m. 6/7/2011 11 -2- 1 K � TOWN OF VA1 0 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Premier Impressions Update PRESENTER(S): Rich Ten Braak, Vail Chamber & Business Association 6/7/2011 } TOWN OF VAQ' VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Update on projects under consideration for Conference Center funds PRESENTER(S): Stan Zemler ACTION REQUESTED OF COUNCIL: Provide direction regarding projects proposed for consideration on a November ballot for use of $9.4 million Conference Center funds BACKGROUND: In April 2011 the Council directed the staff to begin preparing for a November 2011 election to seek public approval for use of the Conference Center funds. In addition, Council requested that we consider the public and council input on the various projects that were proposed and return with a possible list of projects for the ballot. Council also directed that the ballot should include specific projects that would be selected by Council. We are returning today with an update and recommendation of projects for consideration. STAFF RECOMMENDATION: Staff recommends Council consider the following projects for the Conference Center funds ballot as further described in the attached memo: "Gore Range" Pavilion; Ford Park Sports Complex; and Ford Amphitheater. ATTACHMENTS: Memo Conference Center Powerpoint 6 , %7 '20 TOWN OF VAIL Memorandum TO: Vail Town Council FROM: Stan Zemler DATE: June 1, 2011 SUBJECT: Project Recommendations for Conference Center Funds Election Update I. SUMMARY In April 2011 the Council directed the staff to begin preparing for a November 2011 election to seek public approval for use of the Conference Center funds. In addition, Council requested that we consider the public and council input on the various projects that were proposed and return with a possible list of projects for the ballot. Council also directed that the ballot should include specific projects that would be selected by Council. H. DISCUSSION Through a variety of mechanisms the Town has received feedback on the projects that were presented in the spring of 2011 (A summary of comments received is attached). Also, an on- going survey using the web has been underway (results are attached). In addition, a polling of at least 200 registered voters will be undertaken prior to any final decision being made for what appears on the November ballot. Although all the projects we have considered over the past year have great merit, funding constraints and public feedback result in the recommended categories outlined below. 1. Recommended for consideration for $9.4 million Conference Center Funds ballot: • Golf Course Clubhouse renovation and pavilion - $3.8 million. • Ford Park Sports Complex expansion /renovation - $3.5 million. • Ford Amphitheater renovation - $2.1 million. 2. Several additional projects have been identified that compliment the proposed Ford Park improvements: • New entry to Betty Ford Gardens - $600,000. • Improved pedestrian, bike and loading /delivery vehicle circulation in Ford Park - $1.8 million. If the ballot initiative passes these projects should be funded by RETT. 3. Projects not recommended for Conference Center funds, that should be considered in the 2012 budget process: • Improvement to Vail Village Info Center, including restrooms, update information and access. 6/7/2011 13 -1 -I Guest enhancements, signage, information access. These two projects could be funded by combination of General Fund and Capital Projects Fund. Summary of Project Costs and Funding for Recommended Projects Total Project Conference Unfunded Project Cost Center Funds Other Funding Portion "Gore Range" $ 1.5 M — TOV Pavilion $ 6.8 M $ 3.8 M $1.0 M -VRD $ .5 M Ford Park Sports Complex $ 3.8 M $3.5 M None $ .3 M Ford Amphitheater $ 5.0 M $ 2.1 M $2.5 M — VVF $ .4 M Total $15.6 M $ 9.4 M $ 5.0 M $1.2 M Note: The current Real Estate Transfer Tax Fund budget includes $2.5 million for Ford Park improvements, which are not specifically allocated. The projects proposed for use of the Conference Center funds best fit the criteria established early on by the Council: • Potential to increase occupancy. Potential for sales tax growth. • Ability to enhance the experience. Project can be realistically accomplished. • Ability to leverage other funds. • Measureable return on investment. • Plan for on -going operational costs. Not one of these projects meets all the criteria. What they do best is to help Vail continue to do what it does well today, but even better. Questions for Council 1. Are you OK with the proposed list of projects? 2. Do you need additional information and /or more public input? 3. Should staff proceed with development of polling questions for your review? III. ATTACHMENTS A. Conference Center Funds Public Process B. Online Survey: Verbatim Responses Town of Vail Page 2 6/7/20 1 13 -1 -2 Vail Town Council Attachment A Conference Center Funds Public Process 1. Update on Conference Center Funds Public Process To Date March and April 2006 Council requested a series of meetings be held during March and April 2006 to ask for the public's help in identifying a new use for the monies collected to build and operate a conference center. The following details the meeting attendance and ideas generated: March 8, 2006 input from Lodging Group at Vail Golf Clubhouse — 12 attendees March 14, 2006 input from Neighborhood Group at Vail Golf Clubhouse — 33 attendees March 15, 2006 input from General Public at Vail Town Council Chambers March 22, 2006 input from Community Partners at Vail Golf Clubhouse — 12 attendees March 28, 2006 input from Retailers /Restaurants at Vail Golf Clubhouse — 21 attendees Inventory of ideas: Events Center & Dobson Arena Parking Structure Year -round use of Ford Park (enclose amphitheater) West Vail Fire Station Marketing Endowment Special Events Endowment More Summer Festivals New Vail Golf Course Clubhouse Creation and /or Maintenance of New Recreational Trails Paying off TOV Debt Vail 20/20 in 2007 Vail 20/20 process yielded the following community input for reallocation of conference center funds in early 2007: Increase tourism promotion, marketing and special events Loans for first time -home buyers and acquisition of homes for local workers Improve parks, trails, bike paths Remodel Dobson Ice Arena Increase environmental efforts Remove pine - beetle diseased trees Maintain roads Remodel public facilities Fund the needs of the town as they arise April 2007 April 2007 Council postponed research polling and ballot- setting process until 2008 when additional information should be known regarding future plans for a privately Town of Vail Page 3 6/7/20 11 13 -1 -3 funded conference center as part of the Lionshead parking structure redevelopment process. January 2008 January 2008 conference center funds were identified as priority for staff to develop a work plan, with no absolute commitment to a November 2008 election. February 2008 February 14, 2008 Council deferred a ballot question concerning the conference center funds until at least November 2009. April 2010 April 6, 2010 Council directed Town Manager to form a working group to meet over the next several months for the purpose of soliciting ideas and input from the public. May 2010 May 2010 Community Survey Results from the question: "What is the best course of action determining the use of the conference center funds ?" There were 528 respondents: 50% - Move at a moderate pace, taking time to study and evaluate the choices 18% - Move as quickly as possible — a ballot issue on this topic is overdue 32% - Move at a slow pace — there is no hurry; having the money in hand preserves opportunities The follow up question was "Which is the best choice for expenditure of the funds ?" Results were: 53% - Use the money to build something 29% - Save the money for yet- undetermined needs 14% - Other 4% - Use the money for marketing or support programs to enhance our economy June — August 2010 June 2010 — August 2010 Working Group met with local business leaders including: Harry Frampton Bill Jensen Rob Katz Ceil Folz Andy Norris Doris Kirchner Beth Slifer George Gillette Lodging Community Vail Economic Advisory Council Town of Vail Page 4 6/7/20 11 13 -1 -4 Concepts heard most often: Upgrade existing facilities, finalize the Renaissance, and strengthen our core No compelling need to construct a "new dedicated purpose building Multi- purpose facility to serve recreational activities for groups, families and individuals Flexible spaces for groups, banquets, weddings, entertainment, exhibits, art displays, small meetings, community meetings, lectures Central clearing house to leverage activity assets easily accessible Recommendations for highest and best use of $9.4 million: Remodel Golf Clubhouse with addition of events pavilion - $3.5 million Remodel and expansion of Vail Village Welcome Center - $2.0 million Town wide signage /information /guest enhancement system - $1.0 million Expansion and renovation of Dobson Arena - $2.0 million Ford Park expansion of fields - $1.0 million September 2010 September 21, 2010 Council directed Staff to further refine uses and costs on proposed projects. December 2010 December 7, 2010 Council directed Staff to remove Dobson Arena from list of projects as it did not meet the goal to increase economic vitality. As of December 31, 2010, the Conference Center Fund had a balance of $9.4 million available for disbursement. April 2011 April 5, 2011 Staff presented a Conference Center Fund Status Report outlining refined project estimates and costs which included: Remodel Golf Clubhouse with addition of events pavilion - $6.8 million Welcome Center & Guest Service Initiatives - $4.8 million Ford Park expansion of fields - $4.5 million Another project was brought forward by the Vail Valley Foundation for consideration: Upgrades to Ford Amphitheater & Betty Ford Alpine Gardens - $10.0 million Council directed Staff to gather public input on the projects. Input has been gathered as follows: April 12, 2011 — Vail Economic Advisory Council — 30 attendees April 15, 2011 — Lionshead Merchant Meeting — 20 attendees April 19, 2011 — Vail Chamber & Business Association — meeting cancelled April 19, 2011 — Open House in Vail Town Council Chambers — 15 attendees April 19, 2011 — Public Input at Evening Council Session — 4 speakers April 19, 2011 — Online survey posted on home page of www.vailgov.com — 46 responses (see attachment for details) April 21, 2011 — Vail Local Marketing District Advisory Council — 25 attendees Themes included: Town of Vail Page 5 6/7/20 1 13 -1 -5 Remodel the Golf Course Clubhouse with the addition of an events pavilion Project should fit the original intent of the conference center - put heads in beds Visitor Center already has visibility from 1 -70 Heritage Center does not put heads in beds Need an educational component on consequences of not passing the ballot issue Refunding would take the opportunity away from the community Outdoor gathering place with a roof for shelter for camps, tournaments 20 year refund mechanism too long Take the 3 Ford Park projects and bundle them together Vague ballot language will not pass with voters Focus on project(s) that will pass Meeting space with state of the art A/V and theater seating for 300 for CMEs Individual Comments Included: Ball fields are a no Welcome Center Project is wasteful Upgrade Vail's current tourism information systems Find a better idea and don't squander the opportunity Use the funds to bring one of the 2015 Alpine Championship events to Vail Use the funds for parking to get skiers closer to the mountain and charge less Conference center in the existing structure at Cascade Village Poll likely voters Concerned Clubhouse pavilion will take away from private sector business Election should be in keeping with TABOR — November 2012 What's the urgency for an election? Take time to do it right 2. Summary of Input Themes, Observations & Takeaways There were consistent themes in comments and feedback received that are summarized below: Golf Clubhouse Remodel /Expansion • Most favored concept is golf clubhouse remodel. • There are some lingering questions regarding the pavilion component of the proposed clubhouse remodel. Will this take away from business at Donovan Pavilion, hotels? Is this strictly a wedding venue, or would it function as a meeting space with appropriate audio /visual? What are the parking, traffic and neighborhood impacts? Does proposal require an independent analysis regarding economic impact? Vail Village Visitor Center Remodel /Expansion • Least favored concept is renovation /expansion of the Vail Village Visitor Center. The majority of respondents could not identify a strong economic benefit associated with the proposal. Several respondents felt the facility was functioning well as is. • Coordination of existing information centers and the new LionsHead Welcome Center were identified as a concern. Expansion of Recreation Fields at Ford Park Town of Vail Page 6 6/7/20 1 13 -1 -6 • Expansion of recreation fields at Ford Park received moderate support. • Lingering questions on this topic include cost, parking impacts, seasonality, field scheduling and overall economic impact. Improvements to Ford Park Lower Bench • Expansion of lawn seating at Ford Amphitheater received favorable support from respondents, while other components of the proposed Ford Park lower bench improvements such as the proposed pavilion and garden expansion appeared to be less of a priority. • Lingering questions on this topic include who should pay for the improvements, parking impacts, seasonality, possible phasing and overall economic impact. Ballot Strategy • Focus on project(s) that will pass • Upgrade existing facilities • Increase overall economic vitality • Ballot language should be specific • November election is preferred 3. Election Date April 19, 2011 Council agreed to a November 8, 2011 election date. Town of Vail Page 7 6/7/2011 13 -1 -7 Vail Town Council Attachment B Online Survey Verbatim Responses, April — May, 2011 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This project makes immense sense. Enough money should be allocated from the funds to make the new facililty attractive to social and business events and should inlcude communications and audio /visual capabilities for small meetings and conferences. All the funds should be allocated here to do this right. Making it just a social /wedding venue leaves too many capabilities on the table. Making it another Donavan Pavillion, e.g., and empty showroom, will severely limit revenue generation in the winter months. Remember, for many people passing by on 1 -70, this is the first facility they see and the first impression the "Vail Brand" will make. Do it right and we'll add a long -term profitable asset to our aresenal. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Waste of money. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Patchwork project. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Let VVF do this. 5. Other suggestions See #1 above. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions Perhaps we should look at this as a windfall which could be handled like an endowment or a sovereign wealth fund. Invest it properly and then spend only the dividends on future projects, leave the pricipal alone. Many good examples of this where some institutions understand the proper creation and use of wealth. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Perhaps. If the Steadman Center should become a reality with TOV participation, then any conference facility there should be also the "events center" proposed for the golfcourse Clubhouse. Regarding the latter, the road in from the Frontage Rd. is far from adequate to carry that kind of traffic. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate This is a poor idea. It will not increase occupancy in this day of online shopping, nor will it improve life for those of us who live, work, play here., It may help out those who come here knowing little or nothing about Vail. It may increase traffic at the Ski Museum. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Any Ford Park improvement should provide for increased parking, a new structure, first & foremost. Parking in summer is highly inadequate and it is a miracle no one has been run over walking into the curren rec areas along the road. The combination of normal traffic, gawkers, and those unfamiliar w /the area is lethal. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Perhaps, but am skeptical about this unless PARKING be provided first & foremost for all the reasons stated above, but also add in heavy alcohol use by spectators & drivers. Town of Vail Page 8 6/7/20 11 13 -1 -8 5. Other suggestions The Steadman Center could provide increased event center space, but taxpayer funds should be used judiciously here as, despite the Foundation's quasi - non profit status, the clinic is a private enterprise. My number ! recommendation is provision of year -round parking which is horribly inadequate for current uses and will be impossible for expansion of these. Living in East Vail, I allow Denver friends to park in my driveway. However, I am very annoyed that I cannot access the parking at Exit 180 or Bighorn THd, and sometimes not even Gore Creek snowshow loop as so many Front Range folks park there. Limiting parking for these folks to 3 hrs. is silly & will only anger them, as there is often no parking in Village (thank you, VRI & Epic Pass). Bite the bullet, TOV, and solve the parking crisis first! 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Seems expensive. Can not compete and thereby diminish the Pavillion. Must have sufficient parking. Must address sewer /water problems. Meets more criteria than any other of the suggestions. Town must manage the construction project and dictate the programing and design; not VRD. Must be designed as meeting space also ... not exclusively desgned for weddings. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Does not meet stated criteria in any way. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate ASgain seems expensive but woulod bring people to town. Don't thhink it can m eet parking requirements which is already an issue. Can not impact /take away from Gardens or lower bench "open space" 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Meets nnone of the above criteria. Should not be used to "enhance" a privately owned facility. 5. Other suggestions I am glad to see we have moved away from a conference center and the compromising of Dobson. The clubhouse seems to most closely fulfill the original intent of these funds. Another field would bring more people to town as all sporting events do. I feel that prices need to be reduced. They seem terribly inflated. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions It would be great to actually have an expansion and significant upgrade to the Vail Valley Medical Center. All of the staff and physicians here would agree that we have outgrown the space alloted and that because of the hospitals age and signifcant use that it is critical that upgrades are much needed. If we want to remain a high level treatment facility for all types of injuries and illnesses the Vail Valley Medical Center will need these upgrades and /or additions as soon as possible. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions I think Vail should be looking at creating a performing arts center in the old theatre /CMC space at the Cascade. This would offer affordable live theater performances (in addtition to the few offered at the amphitheatre). Lake Dillon and Breckenridge have small theaters that provide great entertainment at a low cost. The space could also provide an excellent location for destination training in the arts: acting, Town of Vail Page 9 6/7/20 11 13 -1 -9 music and dance. In comparison to the other options presented, I think something new should happen, not improvements to the exsisting ammenities. The conference center was a new idea. That is what drew the initial interest. The performing arts center is a new idea. Thank you for allowing our feedback. Larry Dutmer 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions I would suggest considering developing a conference center to further promote medical tourism to Vail. This would include industry, medical device company, specialty societies, and Steadman Clinic related courses. A conference center would provide additional revenue sources for the town of Vail from several of the above sources and continue to attract all medical related com pan ies /societeties and other practitioners. Since I have been visiting and living in Vail (roughly 5 years), there has been a significant increase in demand for the various sources (above) to be in Vail, yet there hasn't been the space to provide for large courses and groups to hold conferences. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions I believe that a conference center would be an excellent investment, as it would not cost significant funds to maintain. However, the revenue that would come in to Vail would be significant. Currently Keystone is utilized as destination for medical conferences, as evidenced by the 19th International Congress on Ski Trauma and Skiing Safety held this week. Vail already has the infrastructure to house the visitors; however a conference center is the missing ingredient at present. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions Your Key Assumption is wrong. The tax money should be returned to the tax payers! I do not support any of these projects and would vote NO for all of them if put on the ballet 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate In my opinion, the existing clubhouse is an embarrassment to the TOV. No matter that the popularity of golf has waned, I feel that there should be a decent facility that could be used for other events. I am not a golfer. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Most of Vail's visitors are high -end & not inclined to visit a visitor's center when they have a travel agent or hotel concierge planning their vacation and activities. I do not think a visitor's center would attract enough new business to justify the $4m. Has a poll been taken that shows how many Vail guests use a visitor's center either here or elsewhere? I think they are for the tourist off I- 70 who is not the typical Vail tourist that supports our restarants, hotels & shops. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate How would this impact Town of Vail Page 10 6/7/20 11 13 -1 -10 the concerts at Ford Park? It is already nearly impossible to play tennis during field events because there is so little parking. Do we really want to expand without addressing the parking problem? 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately I feel that this is one of Vail's biggest attractions. Even people who live at B.0 & Cordillera who don't normally spend time in Vail, come to the concerts. I think it is essential to improve the facility & seating. I also support the idea of a pavillion for weddings & functions, but again, I think the parking problems need to be addressed. If you have paid $50k for a wedding & your guests have to walk in the rain from the parking structure because all of the Ford Park spaces are filled with athletic events, that would be a huge problem. Also, how lucky that the VV Foundation is willing to spend money on this project. How can you turn this down? 5. Other suggestions I am very pleased that the Council has decided to have a 2nd meeting in June and that they are not holding a special ballot. I question whether it is a good idea to try to divvy the funds between too many ideas. I would support spending the money on a new clubhouse & on the F.Amphitheater. I think it is better not to spread the dollars too thinly. I would not give a supporting vote to funding all 4 options. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions I believe it is very important to stress building something that would promote further development of Vail. While #1 -4 above are nice, they do not fit the purpose of the initial proposal. I believe the building of a conference center for medical tourism best fits this purpose. Many small medical conferences are already in Vail. However, due to the limited size of current facilities, larger medical society and teaching courses cannot be held (while Keystone does have frequent larger meetings due to its larger conference facilities). A larger conference facility would bring in much larger conferences and provide a high revenue source for further supporting the businesses of Vail. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This looks like the best option. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This project is the best of the 4. The increased meeting /event space is needed and has a proven ROI based on the Donovan Pavillion model. THe current facilities are horrible and not even close to the expectations associated with Vail; this would serve both locals and guests; Year round potential as well as enhanced Nordic options. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate A shiny new welcome center would be nice considering the current facility is somewhat dated; ROI is questionable; Nice opportunity for the CO Ski Museum; on going funding is tough unless tied to parking revenue? This should not be funded through Conf center funds but through TOV capital improvement Town of Vail Page 11 6/7/20 11 13 -I -11 funds. This project does not meet the criteria noted above. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Why is this project so expensive? Maximizing recreation space is desired. More space equals more people participating and staying in Vail and not down valley. Use RETT funds for parks first and conf center funds if needed. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately This is the 2nd best project on the list. Ford Amph. also has a proven ROI in Vail in the summer. Limited in growth opportunities dues to short summer season at Ford and currently very busy. Accessibility, added seats and overall improvement to the facility are a plus in staying ahead on upgrades of current infrastructure. 5. Other suggestions Make sure we use this money and don't risk "giving" it back. A lot of time has gone into the conference center and now the widowed funds. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This must be done. There is a lack of facilities in town that can handle special event venues. Donovan is booked solid. A well planned building can be used for a variety of community functions and be avaialable YEAR round. This meets the criterias you have set and is consistant with creating not just a seasonal asset but a facility that will be beneficial to this community year round and for many years to come 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate There is barely enough room at that location to accomodate the activities that happen now. If we consider using some of the funds for a Visitor info center they should be used in the Lionshead facility. reasons: the LH building is not what any guest should walk into and it is next to our new transortation center being built today. Having a appropriate sized center there makes much more sense, for a lot less, than cramming a 3000 foot center on the Village structure. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Far too seasonal in use. Limited market. Does nothing to create year round vitality. Additional revenue projections are misleading as the "majority of patrons are already lodging in Vail" - per VRD impact statement. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Far too seasonal in use. Existing facility works well and is an appropriate amenity as is. We need to increase economic vitality year round. TOV already contributes enough yearly to the VVF. 5. Other suggestions The Ford Garden proposal should not be considered. The use is too seasonal and the current garden's financial stability is shakey at best. Expanding the garden will not attract enough new visitors to change the bottom line and will only require more TOV subsidies. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate I like the plan for improved clubhouse and opportunity to use the venue for destination weddings etc, though location is not as central as Ford Park, and therefore I'm not sure it would bring as much economic benefit as project 4. It would probably be my 2nd choice vote. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate I don't believe this project will provide substantial economic benefit to the Town to merit the use of these funds 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate I don't believe this project will provide substantial economic benefit to the Town to merit the use of these funds 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Probably Town of Vail Page 12 6/7/20 11 13 -I -12 would get my first vote on the 4 projects listed. I like the idea of improving the amphitheatre and of providing pavillion at Ford Park that may be used for small weddings and other functions. Also, VVF have a good history of getting things done, so partnership with them feels good. 5. Other suggestions What suggestions have been put forward for use of old CMC space. It seems like prime location that could be used for increased economic benefit to the town as a conference venue, local theatre /arts /film festival etc. ? 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate The Golf Clubhouse renderings look really nice. I like the idea of improving the space and exterior as it is a bit dated. Marketing to weddings is a push as just improving the space for golfers, outside groups looking for a space to convene and local groups is enough. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Unfortunately, I really hate the renderings here. The information center is in a sea of concrete and the proposal is just to stark, would prefer something more modern looking. The proposal is based on a lot of "hope" so seems a bit risky. The information centers are important to the vitality of this community. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Its too bad increased participation or more events wasn't mentioned as a result of this expansion. I just don't see its value. A public pool and recreation center would have sparked my interest more. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Good job on data collection and presentation. True statements about summer draw. 5. Other suggestions None. I'm not a golfer, but I would rank the Golf Club house as #1, the Ford Gardens as #2 , and the Information center as #3. Expansion of the Recreation Fields is out at this time. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate The golf course buildings are truly some of the worst in the county and a near embarrassment. Look at the facilities at all of the other great golf courses in the valley. Vail's facilities are the worst. As a golfer who travels to golf, these facilities look like something from a city course in Detroit. I think you are trying to cram too much into these facilities. You don't need meeting space or an events center as part of the program to the degree you are proposing. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate While I like the ski museum, I am not really sure that this project is really necessary. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Great project but I would do the golf course first. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately I think this one seems too complicated and the funding of which is uncertain. 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate The remodeling should include the installation escalators (in addition to the stairs). It is a very long walk from the Transportation Center to the chairlift and the stairs can be challenging (especially after a long day of skiing). You need escalators like they have at Beaver Creek. Remember that many visitors to Vail use the TOV bus system, so your visitors are being subjected to the use of those stairs. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response Town of Vail Page 13 6/7/20 11 13 -I -13 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate I firmly believe the golf course clubhouse should be torn down and rebuilt but the meeting rooms, wedding areas are totally over the top and will not have any measurable return on investment. Just replace the club house! 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate i don't feel that this will benifit the TOV or it's inhabitants in any way. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately i don't feel that this will benifit the TOV or it's inhabitants in any way. 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Best option if parking can be worked out 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Bottom of the list 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate 3rd choice 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately 2nd choice 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Looks like best opportunity for heads in beds, especially if golf course quality is consistent with clubhouse quality. Could be a draw for weddings and reunions as well as for summer golf trip packages coordinated with other courses in valley such as one sees in Arizona ( "Play 4 courses in 5 days" for example). Golf packages might need more lunch -type restaurant facilites than currently planned. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Before the Town invests this kind of money in a "welcome / heritage center," I think it should resolve how it plans to coordinate its many centers. We already have a visitor center with a large adjacent room which could be but is not currently used by the center in the Village, a smaller center in Lionshead, a new center in Lionshead and a Mountain Info center in Lionshead. "heads in beds" questionable. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Heads in beds - maybe. Should resolve the field alignment and restroom location anyway. Restrooms are currently useless to lower bench users. Retaining wall at west end might help the problem of kids leaping out of that weedy hillside into the driveway in front of TOV trucks, delivery trucks to Amphitheater, concert golf carts. It should, however, include a staircase or the kids will be leaping off the retaining wall. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Don't see the heads in beds here. Amphitheater: Terracing the amphitheater lawn probably a good idea, but if the terraces are flat, only the "front row" of each terrace will have good visibility unless the rest want to watch television. Also, when it rains, those flat terraces will get impossibly soggy for the lawn- sitters. Creating steps and pathways onto the current lawn for safe entry and egress may be a better improvement than total terracing. Changes to entry appear to increase congestion at entry gates and will -call and make entrance feel very closed in. Guests currently can go outside the entry at intermission Town of Vail Page 14 6/7/20 11 13 -1 -14 but few choose do so because full service bar and food are inside. Sounds like anything in the current entry courtyard would be more temporary service areas and maybe not conducive to major migration outside. Like the addition of east bathrooms. Entry kiosk: creates a pedestrian, golf cart, delivery vehicle, TOV vehicle impediment and cuts into lawn. Walkway to the east and bridge to nature center: helpful from parking lots, but from lower bench much easier to go to Nature Center along current path than to go up hill, across a new bridge, then down hill. Not sure current terrain allows for roadway for delivery vehicles and driveway as depicted. Pavilion: awfully large for proposed location; should move up nearer current picnic pavilion. Need to work through total Ford Park Plan to figure out how to accommodate Alpine Gardens, Sculpture Garden, playground, open space, information center, multi -use pavilion, fields, parking, etc. 5. Other suggestions Like the idea of providing some cover for the amphitheater lawn, even if just a canvas roof / tent -like structure as at DIA or making it possible to enclose the core seating to extend the season. Are there any expansion / improvement options for the soccer fields on Vail Valley Drive? Best choice for heads in beds based on project: clubhouse. Second choice: fields improvement. Sometimes heads in beds is a function of breadth of experiences available, not just one project. Can hike /bike /golf at a lot of areas in the mountains. Why Vail? Best choice for total guest experience enhancement. That would lead to Ford Park lower bench (including major upgrades to bathrooms, kids playground, nature center, visitor / activity center not mentioned in VVF proposal), followed by golf clubhouse and course enhancements, info /heritage center, fields improvement (very specialized heds in beds kind of project). 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Well needed but, does it bring heads and beds. Shouldn't there have been funds set all long for a makeover 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Not necessary, prudent or needed. maybe move the bathrooms to a respectable place and some paint,. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate This is necessary. La Crosse, Soccer, Baseball, all sports all bring guests and revenue to our town. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Great, but again, where does this assist in the revenue of our town. 5. Other suggestions An indoor venue is desparately needed for music, ie belly up in aspen, Film Festival activities, to bring, the dance, bravo, jazz all year round and for the symposium to grow. These incredible events have grown, we have no venue to assist to year round growth and revenue 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate I don't see how this is either necessary or reasonable. Golf course does not need an events pavallion which would see minimum use. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Would probably serve a lot of people , especially if field is used for more than soccer. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No. This is for a special group that only has events about 20 days a year. 5. Other suggestions 1. Repave existing streets where needed. 2. Set aside a fund to maintain existing facilities. 3. Try to find items that will effect most of the population most of the time. Town of Vail Page 15 6/7/20 11 13 -I -15 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate I believe this project will not bring in additional occupancy. The exixting facilities serve the community well. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately This would be a desirable benefit for both the visitors and the community. 5. Other suggestions With the upcoming 2015 Championship, thoughts should be given to the negative impact of this event. Many people will book elsewhere. Aspen, Steamboat, Breckenridge and Utha will be advertising against us during the Championship. We can not be compared to European events in the mountain nations, Germany, Austria, Switzerland, Italy and France these Championships are all accessable by train or by car. The probability of selling out during the Championship is questionable. Without a doubt the event will give Vail /Bevercreek an incredible exposure for the long term. Some of the funds should be used for a marketing budget for 2013/2014 and bejond. A long term impact would be to participate together with the county to make Eagle Airport and International Airport. Direct flights from Mexico and bejond would have a profound and long term impact in the Valley's economy 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions Continue to feel best and highest use of these funds would be a recreation center, perhaps in the the Donovan Park area. By charging admisskon and membership fees there would also be the potential to use these to cover the servicing of a bond issue to add to the available funds. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This is the best use by far. The existing clubhouse is not at all in keeping with Vail's standards and is in desperate need of a remodel. Adding meeting /event space meets the conference center funds criteria. It is a beautiful location that is currently not being used to it's full advantage 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate I am appalled this is even in the running- a HUGE waste of taxpayer money. The existing Visitor Center is fine. I find the analysis that building an improved center will result in more guests spending more money in Vail to be absurd 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate While this is more credible than #2, 1 don't see it as huge need or as meeting the fund criteria as well as #1 does 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately This is a worthy project. I would hope to see these improvements done eventually, but #1 is clearly the remodel that is urgently needed. I would question how easy it would be to use the pavillion for events when the parking is removed from it, and an open air pavillion isn't going to attract as much event /meeting wedding business as the enclosed one proposed at the clubhouse 5. Other suggestions No Response Town of Vail Page 16 6/7/20 11 13 -1 -16 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Does not make sense. Visitors do not choose Vail for golf. Do we have any data on non - owner -non resident use of golf course 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Again what do wee have in the way of data of usage to justify this 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Here we clearly have a way to increase visitors during the summer. 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This is the most needed and probably has the most income generating potential of all the other options. The Clubhouse is ancient history and in dire need of an upgrade. Without it the building and entire context of a Vail Municipal golf course falls into category with all other dilapidating structures in the valley. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions REFUND! 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate THIS NEEDS TO BE DONE. A FEW YEARS AGO WE HAD 30,000 PLUS ROUNDS AT VAIL GOLF COURSE. WE HAVE LOST BUSINESS BY NOT KEEPING UP. THE VAIL GOLF COURSE CAN BE A MAIN FINANCIAL DRIVER FOR THE ENTIRE VRD PROGRAMS.. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate PRICE TAG SOUNDS HIGH. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate NEEDED... 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately MAKE FORD AMPHITHEATER A YEAR ROUND FACILITY. 5. Other suggestions LETS MAKE SOME DECISIONS. IT TOOK 20 YEARS FOR THE FIRE STATION, DONOVAN PAVALION„ SWIMMING POOL ETC ETC ETC. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate The current golf clubhouse lacks an inviting or positive visual impact. For travelers coming in from the east, the current clubhouse does not give a positive impression of the town. It is run down, old and architecturally ugly. Given the efforts the town has made to update the appearance of buildings in the town, it is time the golf course had a chance to shine. A new building that takes advantage of the view of the Gore Range will present a better impression of the town and should be a draw for destination weddings and other rent producing events. Thie remodel /expansion will help make the clubhouse a 12 month a year venue. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Town of Vail Page 17 6/7/20 11 13 -I -17 Welcome /Heritage Center, $4.8 million estimate I think updating the existing facility is a good idea, but don't think that we need a heritage center. People stopping in for room and town information should be encouraged to spend time in the town at stores and restaurants instead of visiting a heritage center. And I am concerned that a heritage center will pull people away from the ski museum. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Yes, I know we need to find ways to make the town a 12 month a year venue, but I am not in favoe of spending this much money for a 3 month a year site. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately I am in favor of this project because it will keep the amphitheater fresh and guest friendly, enhancing the site for its current and future programs. I am not sure we need all the extra gardens. Leaving some of Vail in its natural state is not a bad thing. Adding the path along the creek is a good idea as it will connect to other paths already in place along the creek. Having this project be a collaboration of public and private funds is also a plus. 5. Other suggestions Spend money on the town library to add space and more computers plus a more up to date community room space (with higher tech electronics and projection). Remodeling the lower level will give the library more space without having to add a 2nd floor. With the addition of more computers in the expanded space, there will be fewer guests having to wait for computers or make reservations to get on computers. The library is already a welcoming space, but making guests wait for computer time is not always a positive experience for guests. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions Ask the voters to reinstate the .5% sales tax and 1.5% lodging tax. Proceeds would be used for a conference center on the charter bus lot, in line with the original intent. The big difference would be that construction would not start until a larger fund was built up, allowing the Town to finance much less than was planned in any of the previous iterations. Another vote could be take at that time with regard to the specifics. According to my calculations, had we continued the tax in 2005, we would have collected another $21 miilion by now (for a total of $30MM). Let's look five or ten years down the road and put ourselves in a place to just build the thing with very little debt, since that seemed to be the big concern in 2005. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Of all the proposals, this one seems to meet the overall criteria the best. With a pavilion for events, this could be a draw for "destinaton" events. An improved clubhouse would be a benefit for those living and working here. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Don't see how a welcome center will draw increased revenue and people to town for an extended stay 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Nice for the locals, but feel golf club the better investment 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate I believe that the clubhouse as it is currently is shameful. All the other golf facilities in the Valley are nicer, Town of Vail 6i7i20 Page 18 u 13 -I -18 newer, more function, etc. I think that you could capture more of the summer golfing crowd (and they would return) if this facility was upgraded substantially. I think weddings could also occur here if this project was chosen. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate I also believe that Vail should have the best ski museum in the world, but I do not believe that it will increase tourist visitors. People don't come to Vail and think, oh, I can't wait to go to a museum. Different crowd. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate $4.5 for a soccer field. No thank you. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Didn't they just do a big renovation of Ford? 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate the clubhouse is clearly in need of renovation for both golf in the summer and nordic center in the winter. Those uses need to be the primary focus of this facility. Basing the feasibility on the generation of wedding business is a mistake. Two reasons: (1) it is doubtful that the anticipated business will be new business. (2) one needs to look at the margin of wedding business, not at the revenue generated. Based on the margin building this facility will never make sense. I questions the cost estimate based on a very schematic plan. This nees a lot more thought!!! 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate This is a good concept, but I have to believe that it can be accomplished for 2.5 Mio. Focus on what really bring the benefit and relook at "fluff" and " wish list items" in the concept drawings. This plan is nowhere near ready for funding consideration. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate a nice idea, but has anyone truly looked at the all the fields we have in the Vail Valley now. ( Mountain School, Ford Park, Donovan, Battle Mountain, Edwards, Singletree ......). Do we need to spend 4.5 Mio on new fields or do we need to manage existing facilities more effectively ?? Needs a lot of work!! 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately by far the best option. This is a credible project that will enhance the Vail experience. It is the only proposal that is at a stage of development at which it warrants consideration for funding. 5. Other suggestions (1)With 2015 on the horizon it would be wise to consider a fund to leverage the 2015 message into generating awareness (and business) before, during, and after the championships. (2) Why are we not talking about solving our parking problem anymore!!! (3) Expanded air service into Eagle ( domestic, international). 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Important 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Very important 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Not important 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Not important 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This looks like a great idea. Lovely venue, easy access by car (in the evening parking should be no problem) and by the free shuttle bus. I suspect this could be the "go to" venue for events. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate The present center serves its purpose and Town of Vail Page 19 6/7/20 11 13 -1 -19 the proposed cost /benefit analysis shows a 9 -10 year period to break even on the cost. Not necessary 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate There seem to be sufficient fields - scheduling is the only issue, not quality or quantity. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate While the project is good, I wonder if the scale of remodel is needed and could remodeling by paid for by user fees added to the current charges. Does the gold club need to be in competition with other places for events. How many events are currently held there. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate It is a good idea to have a great face of Vail meet the public. However, could just a remodel do the same job. I have seen people making reservations on snowy days etc. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate not high priority 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Probably the best of the projects. Lots of folks see this 5. Other suggestions I would do number 4, not do 3, do some remodel to update the Visitor Center and not do number 1, or the remodel to be done could be paid for with fees generated by the golf club 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This would be the best use of the funds. There are so many events that could use the facility. Donovan Pavillion is already very hard to reserve. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No Response 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions Let the economy stabilize for at least 24 months before spending on these projects. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Best choice! 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate If the intent of the original Lodging tax for the conference center was to drive business into the TOV during the shoulder seasons, this one is really the only one with any hope of doing this and any business captured off Town of Vail Page 20 6/7/201 13 -1 -20 1 -70 is typically new business. ALL the other proposals are enhancements for existing customers. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately This should have been done long ago and if the amphitheater can become a year -round facility, it could bring new business to Vail in the shoulder seasons. 5. Other suggestions The Rec District projects should be dropped and paid for by the Rec District. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Acceptable idea 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Not acceptable 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Best choice 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Not acceptable- Shud be private 5. Other suggestions No Response 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This is a good use of funds to improve a significant part of the Vail experience. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate This is confusing and frankly seems like a complete waste of money. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate This seems reasonable 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately A home run - the best of the four plans to improve Vail's signature asset (other than Vail Mountain) and the most comprehensive, signature program. 5. Other suggestions I'd encourage consideration of using funds for their original purpose of driving "heads in beds" to use some for marketing, specifically the international marketing efforts leading up to the 2015 world championships. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No Response 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate I don't think a good case has been made on this although I recall the original Beaver Creek Reception Center and how many people enjoyed seeing the introductory film on the resort. Something like this could be a nice addition to the Center but probably not the best way to spend nearly $5 million. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No Response 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No Response 5. Other suggestions All these projects, while worthwhile, do not truly accomplish the original goal for "conference center" funds. My first preference would be to NOT allocate funds to a variety of projects but rather, be patient and find something really spectacular to enhance with the funds. I absolutely do not support giving the money back by any method. Should Council push forward on the current course I worry that parceling out bits of funds will help start projects but not make a significant impact on any single thing, thus creating a bunch of mediocre results with minimal impact. Rather than value engineering and cutting corners on several projects I believe one to three significant projects should be selected and done really right. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Much need, a good idea 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Stupid waste of money, detracts from other Town of Vail Page 21 6/7/201 13 -1 -21 projects 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Definately needed but it seems like too high a price tag 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Enlarging the amphitheater or enclosing it seems like the closest idea to a conference center idea 5. Other suggestions A public Recreation Center with a pool. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate #2 option - this complex needs the love. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Don't waste our money. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate #1 use of funds - Vail needs this improvement. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately #3 option - like the improvements - but - not enoug money to do everything! 5. Other suggestions No Response April 19 Community Open House Survey 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Best of the original three. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Worst of the original three. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Idea not developed enough. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately No comment. 5. Other suggestions. Turn Ford Amphitheater into year -round facility. Start the process over. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Events pavilion would compete with Donovan Pavilion. Regardless, clubhouse remodel is overdue to keep golf business here instead of downvalley. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Least attractive of the alternatives. Minimal benefit for costs. No local or greater community benefit. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate More fields that are usable for a longer season will generate more events, tournaments, camps which will immediately benefit the town, often during slower times of the year. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately This is the showpiece of Vail. Keeping it modern, beautiful and functional will benefit citizens, guests and business. Underground parking will have an immediate impact year- round. 5. Other suggestions. Long term benefits from recreational activities are aligned with town goals and tourist demographics. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate No. 1 needed project. The current clubhouse is an eyesore. Am not a golfer but really see the need to bring this to Vail standards. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Makes no sense. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate No response. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park Town of Vail Page 22 6/7/20 1 13 -1 -22 improvements, $5 million public investment with remaining funds raised privately This project also makes sense, perhaps could be done in stages. First, fix law seating, etc. 5. Other suggestions. No response. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate This is appropriate for these funds. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Not appropriate for these funds. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Partially appropriate for these funds. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Not appropriate for these funds. 5. Other suggestions. No response. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Remodel clubhouse, yes. An events pavilion, no. That is business for all the new hotels. We already have Donovan. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate No. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Expansion of fields, yes, but natural grass. No artificial turf. This is Vail! 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Yes. 5. Other suggestions. No response. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Yes, clubhouse needs a re -do; but no pavilion. We have Donovan and hotels for events. An events pavilion on the 18 green as proposed would and should require second homeowner input before it comes to a vote. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Good idea. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Good idea with no artificial turf. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Yes. 5. Other suggestions. Plant fir trees along frontage road and improve appearance at roundabout entrances and exits. 1. Golf Clubhouse Remodel w/ Events Pavilion, $6.8 million estimate Rec District should fund its own facilities. No town funds should be spent to tax support what is run like a private club. Some golfers pay less than $20 a round. 2. Vail Village Visitor Center Remodel /Expansion to include guest service enhancements, Welcome /Heritage Center, $4.8 million estimate Would not generate any additional business. 3. Expansion of Recreation Fields at Ford Park, $4.5 million estimate Astro turf an aesthetic disaster. Would not provide any additional business. 4. Expansion of lawn seating at Ford Amphitheater, construction of pavilion & other park improvements, $5 million public investment with remaining funds raised privately Lawn seating great. Pavilion, no. Stop urbanizing Ford Park. 5. Other suggestions. Save the money until something can be found which will be supported by the community. Town of Vail Page 23 6/7/201 13 -1 -23 Conference Center Fund Proposed Projects Update Vail Town Council June 7, 2011 _ , � yam �.. L A✓j ,drjY' mot. /'� 5 ' • Y •il TOWN OF VAIL ' d /7i2an 13 -2 -1 Conference Center Fund Town Council Project Goal: increase overall economic vitality Key Assumption: Fund should be used for capital asset, either a new or enhanced existing facility, providing a long -term benefit to the Town of Vail Criteria for Project Review: • Potential to increase occupancy. • Potential for sales tax growth as a result of the investment. • Ability to enhance the experience for those who live, work and play in Vail. • There could be future opportunities to expand and /or enhance the amenity. • The project can be realistically accomplished, including financial feasibility and can meet such requirements as zoning and parking etc. • Ability to leverage other funding sources available, e.g. private investment, Tax Increment Financing (TIF). • Measurable return on investment. • Plan for ongoing operational costs to be funded. Adopted September 7, 2010 by the Vail Town Council Town of Vaii 6/7/2011 13 -2 -2 Conference Center Fund Actions Since Last Public Hearing • Open comment period continued with input from community • Staff met with members of the public to conduct additional vetting of projects • Master planning meetings conducted with stakeholders including Vail Recreation District, Betty Ford Alpine Garden, Vail Valley Foundation and Town of Vail • Received 46 online survey responses by members of the community Town of Vail 6/7/2011 13 -2 -3 Conference Center Fund Recommended Projects For Funding • Gore Range Pavilion: Golf Course Clubhouse remodel and addition of an event space: $3.8M • Ford Park Sports Complex: Remodel and expansion of athletic fields and additional bathroom facilities: $3.5M • Ford Amphitheater: Remodel of facility including stepped lawn area, addition of plaza and circulation /road improvements: $2.1 M Town of Vail 6/7/2011 13 -2 -4 Conference Center Fund Project Costs and Funding 0MI rota OtheI Unfunded Project Portion Cost Funds Requested AM& Sunburst $6.8M $3.8M $1.5M- TOV $500,000 Pavilion $1M- VRD Ford Park $3.8M $3.5M None $300,000 Sports Complex Ford $5M $2.1M $2.5M- VVF $400,000 Amphitheater TOTAL $15.6M $9.4M $5M $1.2M *Does not include $2.5M in 2011 budget for Ford Park improvements Town of Vail 6/7/2011 13 -2 -5 Projects Identified As Complementary to Ford Park Improvements fY- Betty Ford Alpine Garden: Addition of new entry feature and expansion of garden: ;:. $600,000 Ford Park Circulation/ Loading and Delivery: Improved pedestrian and bike paths, loading and delivery circulation: $1.8M Total Cost = $2.4M Town of Vail 6/7i2an 13 -2 -6 Projects For Future Consideration • Vail Welcome Center: Improvements to Vail Village Information Center, including restrooms, remodel and access • Guest Enhancement Program: Improved .° �� �, < �"_, signage, information t portals Town of Vail 6/7/2011 13 -2 -7 Conference Center Fund Gore Range Pavilion (Golf Course Clubhouse) Addition to existing i clubhouse including: New events pavilion • New entrance to pro shop and restaurant Updated locker rooms Cart barn improvements • New welcome area Expanded deck area Town of Vail 6/7/2011 13 -2 -8 Gore Range Pavilion (Golf Course Clubhouse) s r 1 - 'ism..} +! 4 C 1 / \ n ; .��IP �. -alp Town of Vail 6/7/2011 13 -2 -9 G ore • • ( Golf • urse Clubho if Y a • s r� - iii LOU , ii( .`� i1� _ %' lq T own o G ore • • ( Golf • urse Clubho Town of Vail r i 1� Ford Park Sports Complex and Ford Amphitheater a _ � �a.amevwa �1n a Town of Vail 12 6/7/2011 13 -2 -12 Ford Park Sports Complex and Ford Amphitheater I i I Town of Vail 13 6/J/2on 13 -2 -13 Ford Park Sports Complex and Ford Amphitheater _- _ _L 1 I i a GERALD R-. 'F ORD �' �dRx ¢ AM�ulru�.tfsz Town of Vail d /7i2an 13 -2 -14 Conference Center Fund Ford Park Sports Complex Proposed Upgrades: Addition of one full t sized soccer field • Increase size of west softball field New storage facility Two new restrooms 1 Welcome center, - concessions Town of Vail 6/7/2011 13 -2 -15 Ford Park Sports Complex and Ford Amphitheater Oro -off r a.o -w ho Ma9ef �d w, oNel p"Inp (PofegBal lufore Rhoie� park storage! - .. .. r, ., maintenance 8 �-- 1 7 porkir g I I j III tom\ resfroom paces • 9 I L-J remove bu s park center - — •welcome Ce mul}tp taining urpose area/ •resfroom - ouK.eld enlarged sports fields concessions re wall •covered gathe,nq area • bike parking Permanent way improvements' - v anent fence Town of Vail 16 6/7/2011 13 -z -16 Conference Center Fund • • P ar k S por t s C omp l ex: E x i s ti ng �. 1 • 11 i k i' ` JAS n n 9"8 T own o Conference Center Fund Ford Park Sports Complex C P r M , an Ar 1 Town of Vail 18 6/7/2011 13 -2 -18 Conference Center Fund • • A Proposed Upgrades: 0 Creation of entry plaza 0 Improved 1 i circulation/loading a delivery Benched lawn area Town of Vail �` Conference Center Fund Ford Amphitheater: Terraced Lawn Seating r 1 � • 1 .. Town of Vail 20 6/7/2011 13 -2 -20 Conference Center Fund Ford Amphitheater: Existing Entry j i Town of Vail 21 d /7i2an 13 -2 -21 Conference Center Fund Ford Amphitheater: Proposed Entry r L - eovorr�,,T - - - -- L �' � weMC✓ i ..I LONC654K7�/ I I r *- ;�,�v -t -- O C � I 1 01 J5V;rX'rAAZ4 7sckE7'� ew CFAM— Town of Vail 22 6/7/2011 13 -2 -22 Conference Center Fund Ford Amphitheater: Entry Breezeway r � f - - Town of Vail 6/J/2on 13 -2 -23 Conference Center Fund Questions for the Town Council: Project selection: Does the Vail Town Council wish to proceed with a ballot initiative to use conference center funds on the projects outlined in the memorandum? Public Input: Would the Vail Town Council like to seek additional input from the public (i.e. open house)? Polling questions: Should Staff proceed with development of polling questions for the Vail Town Council's review? Town of Vail 6/7/2011 13 -2 -24 } TOWN OF VAQ' VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: First Reading of Ordinance No. 10, Series of 2011, amending 12 -13 -5: Employee Housing Deed Restriction Exchange Program, Vail Town Code, to allow for two new methods of exchange including a full fee -in -lieu option and a deed restriction relocation option. PRESENTER(S): Nina Timm ACTION REQUESTED OF COUNCIL: Approve, Approve with Modifications, or Deny Ordinance No. 10, Series of 2011 on first reading. BACKGROUND: At the March 1 and again at the April 12, 2011 Vail Local Housing Authority (VLHA) meetings the VLHA unanimously recommended adopting the proposed amendments to the Employee Housing Deed Restriction Exchange Program. At the April 25, 2011 Planning and Environmental Commission (PEC) the PEC voted 6 -1 (Pratt) to forward a recommendation of approval on the proposed amendments to the Town of Vail's Employee Housing Deed Restriction Exchange Program. STAFF RECOMMENDATION: ApproveOrdinance No. 10, Series of 2011 on first reading. ATTACHMENTS: Staff Memorandum Ordinance 6/7/2011 TOWN OF VAIL� Memorandum TO: Planning and Environmental Commission FROM: Community Development Department DATE: April 25, 2011 SUBJECT: A request for a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. (PEC110018) Applicant: Town of Vail, represented by the Vail Local Housing Authority Planner: Rachel Dimond / Nina Timm I. SUMMARY The applicant, the Town of Vail, represented by the Vail Local Housing Authority, is requesting a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. Based upon Staff's review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Commission forwards a recommendation of approval subject to the findings noted in Section VIII of this memorandum. Attached for review is a draft version of Ordinance No. 4, Series of 2011 (see Attachment A). II. DESCRIPTION OF THE REQUEST Some employee housing unit deed restrictions in the Town of Vail do not require an employee to occupy the unit. Further, extensive Staff resources are utilized for enforcement with employee housing deed restrictions. The Town created an EHU Exchange Program to increase the number of employee occupied units while reducing Town resources spent on enforcement. However, this program has not been utilized, in part, because of the onerous nature of the exchange. Specifically, in order to remove a deed restriction, an owner would have to convey a dwelling unit that the Town would then deed restrict and sell or rent at the Town's benefit with no payment to the owner. 6/7/2011 14 -1 -1 The goals of the proposed text amendments are: • To ensure there is deed restricted employee housing for 30% of Vail's workforce • Turn non - performing /unoccupied EHUs into performing /occupied EHUs • Provide additional options for EHU exchanges to improve participation in the program • Improve compliance with EHU deed restrictions The existing exchange program regulations allow existing deed restricted employee housing to have the deed restriction removed in exchange for giving the Town of Vail a dwelling unit fee simple for the purpose of placing a deed restriction on that dwelling unit and housing employees through the resale or rental of that employee housing unit. According to the existing regulations, up to 20% of the required exchange square footage may be paid by fee -in -lieu. The proposed regulations create two new options for the exchange program: 1. Partial or full cash fee -in -lieu payment 2. Allow owners to keep proposed EHU instead of deeding unit to the Town of Vail for rental or resale At their April 11, 2011 hearing, the Planning and Environmental Commission recommended amendments to the proposed regulations including addressing the 31 units that are deed restricted units that were not referred to as employee housing units, a 100% pay in lieu option, an option that includes the ability to bank excess square feet and a proposal to allow for leeway on square feet for the proposed EHU by allowing the proposed EHU to be 90% of the required size without additional payment. After extensive consideration of these issues and potential amendments, Staff included an amendment to the definition of exchange EHU in order to address the 31 units that are not clearly included in that definition. Further, Staff kept the 100% pay -in -lieu option as was initially proposed. Staff does not recommend a bank for excess square footage in a proposed EHU to be applied to future exchanges. Further, Staff does not recommend allowing proposed EHUs to be smaller than the requirement without a fee -in -lieu payment for the remainder of the required square footage. However, should the PEC wish to recommend these amendments that are not reflected in the proposed regulations below, sample language is included with potential modifications in Section VIII of this memorandum. The proposed regulation amendments are as follows (text that is to be added is bold italics): 12 -13 -5. Employee Housing Unit Deed Restriction Exchange Program. Town of Vail Page 2 14 -1 -2 A. Purpose. The purpose of this Section is to provide occupied livable, affordable employee housing units within the Town of Vail through the establishment of an employee housing unit deed restriction exchange program. The exchange program allows the Town Council to release e# a deed restriction from an existing employee housing unit in exchange for the GenveyanGe ef a kee p4a4et dig °ffing uni to- the � ^�„-of Vail to, be deed restricts the placement of an employee housing deed restriction on another dwelling unit and/ or a fee - in -lieu payment made to the Town of Vail. B. Applicability. The program established under this Section applies to existing employee housing units. This shall not apply to any existing employee housing unit that is already price appreciation capped or any employee housing unit established to meet the on -site employee mitigation requirements of Chapter 12- 23, Commercial Linkage, or Chapter 12 -24, Inclusionary Zoning, or as part of an approved development plan. C. Definitions. For the purpose of this Section. Commercial Job Core. Those areas located south of Interstate 70, east of the intersection of Forest Road and South Frontage Road, north of Vail Mountain, and west of the Town of Vail Soccer Fields on Vail Valley Road, as further defined by Exhibit A in this Section. Exchange EHU. The existing non -price appreciation capped employee housing unit or other unit with an employee housing deed restriction that is being proposed to have the deed restriction released as part of this program. Proposed EHU. The existing dwelling unit that is being proposed to receive an be Genve te-the Te ,n of Vag A9F M e puFpese ef ^sae ng anew employee housing deed restriction as part of this program. D. General Requirements. The Town Council may approve the removal of an employee housing deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction on to another dwelling unit, and /or the payment of a fee -in -lieu. 1. Exchange EHU requirements. a. The exchange EHU shall not be part of any employee housing project developed or deed - restricted (in part or in whole) by the Town of Vail. b. The exchange EHU shall not be part of any on -site employee housing mitigation required by inclusionary zoning, commercial linkage, or as part of an approved development plan. c. The property that includes the exchange EHU shall comply with the prescribed development standards (density controls including GRFA and number of units, site coverage, landscaping and parking requirements, etc.), as outlined in the applicable zone district section Town of Vail Page 3 6/7/20 1 14 -1 -3 of Title 12, Zoning Regulations, Vail Town Code, upon exchange of the deed restrictions. 2. Proposed EHU requirements. a. The proposed EHU(s) shall be located within the Town of Vail. b. The proposed EHU(s) shall be within a homeowners association that does not preclude deed restricted units, does not have a right of first refusal, does not have right to approve the sale or the sale contract, or have any other requirements deemed to be similarly restrictive by the Administrator. c. The proposed EHU shall comply with the minimum size requirements shown in Table 13 -2. TABLE 13 -2: MINIMUM SIZE OF PROPOSED EHUs Type Of Unit Minimum Size (GRFA) Studio 438 square feet 1 bedroom 613 square feet 2 bedroom 788 square feet 3+ bedrooms 1,225 square feet d. The proposed EHU shall contain a kitchen facility or kitchenette and a bathroom. e. The property on which the proposed EHU is located shall comply with Chapter 12 -10, Off - Street Parking and Loading, Vail Town Code. f. The proposed EHU shall have its own entrance. There shall be no interior access from the proposed EHU to any dwelling unit to which it may be attached. 3. Exchange Rate for Proposed EHUs: a. If the exchange EHU(s) is within the commercial job core and the proposed EHU(s) is also within the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two (2) times the gross residential floor area (GRFA) of the exchange EHU. b. If the exchange EHU is within the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of three (3) times the gross residential floor area (GRFA) of the exchange EHU. c. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is inside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of one and one -half (1.5) times the gross residential floor area (GRFA) of the exchange EHU. d. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum Town of Vail Page 4 6/7/20 11 14 -1 -4 of two (2) times the gross residential floor area (GRFA) of the exchange EHU. 4. E-XeeP�;7Fer- L-ieUr The a p p4GaRt R4a)'eleGt tG PF G V ide a n r„ n„ E.e EHU (s) that is within 90% of the minimum ragUiFed ivross rasideRtial floor f;9a (GRF, 1) fi r the p rowed CLJI 1 if a na)ivnon/ is rn de f or- the romainin minimum req i e� esiden floo r (GAC/I1 t ra t est /isho� 1 a i� it TGM4 Qonnil fi r lnG4USionar' -GRiRg na)i /• vnons of foe in l U os/• ;hlishorl hi GhapteF 42 23, ! G 4usi Z ning Vail Toinin Code 45. No Credit Given. If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in Subsection D3 above, the additional gross residential floor area (GRFA) be eligible for use as any form of future credit or for the Commercial Linkage or Inclusionary Zoning employee housing mitigation banks established by Sections 12 -23 -7 and 12 -24 -7, Vail Town Code. NOTE: Should the PEC wish to amend the section above, potential regulations for a mitigation bank are in a list of potential modifications in Section Vlll of this memorandum. 6 . Qep4p ianno k44th mues he r n Arlo �r� ,- r�-- Re T „� p �- ��t#� i ��t#e avohpge E449 and the f;9pesar/E�-ll 1( s // h� AWY nmmPhi With ill regUiramanfs C'f - F �Z Zen ing Re�' an the 4 4 , Dev e l app 4 ept S rds 1 a i - n Code upon e, ohapge of the deed reslrio%ions TGGR of f;gpesed E449 The n edE449 ch /�/ be nVeye� fee 5. Fee -In -Lieu: The applicant may elect to provide a fee -in -lieu payment to the Town of Vail for any portion of the required square footage not provided by a proposed EHU. The town shall only use monies collected from the fees in lieu to provide new employee housing. The applicant shall pay a fee -in -lieu equal to the following formulas: Existing EHU sq ft x multiplier x inclusionary zoning fee = Fee -in -Lieu Payment a. If the exchange EHU was approved prior to July 22, 1994 and has a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees...," the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 1 b. If the exchange EHU was approved after July 22, 1994 and /or does not have a deed restriction that includes the language stating "if the Town of Vail Page 5 6/7/20 11 14 -1 -5 unit is rented, it shall be rented only to tenants who are full time employees...'; and If the exchange EHU is outside of the commercial job core, the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 2 c. If the exchange EHU was approved after July 22, 1994 and/or does not have a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees...'; and is within the commercial job core, the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 3 E. Fees. The Town Council shall set an application fee schedule sufficient to cover the cost of Town Staff time and other expenses incidental to the review of the application. The fee shall be paid at the time of the application, and shall not be refundable. F. Review Process. 1. Submittal Requirements. The Administrator shall establish the submittal requirements for an Employee Housing Deed Restriction Exchange application. A complete list of the submittal requirements shall be maintained by the Administrator and filed in the Community Development Department. Certain submittal requirements may be waived and /or modified by the Administrator and /or the reviewing body if it is demonstrated by the applicant that the information and materials required are not relevant to the proposed exchange. The Administrator and /or the reviewing body may require the submission of additional materials if deemed necessary to properly evaluate the application. 2. Review Procedures. a. Administrator Review. The Administrator shall review the application for completeness and compliance with this Section, and shall make a determination of completeness and compliance with this Section within fourteen (14) days of application submittal. Should the Administrator deem that the application is incomplete or not in compliance with this Section, the Administrator shall deny the application. Should the Administrator deem the application is both complete and in compliance with this Section, the Administrator shall forward the application for review by the Vail Local Housing Authority. b. Vail Local Housing Authority Review. The review of a proposed Employee Housing Deed Restriction Exchange application shall be held by the Vail Town of Vail Page 6 6/7/201 14 -1 -6 Local Housing Authority at a regularly scheduled meeting. A report of the Community Development Department Staff's findings and recommendations shall be made at the formal hearing before the Vail Local Housing Authority. Within twenty (20) days of the closing of a public hearing on a proposed amendment, the Vail Local Housing Authority shall act on the application. The Authority may recommend approval of the application as initiated, may recommend approval with such modifications as it deems necessary to accomplish the purposes of this Title, or may recommend denial of the application. The Authority shall transmit its recommendation, together with a report on the public hearing and its deliberations and findings, to the Town Council. c. Town Council Review. Upon receipt of the report and recommendation of the Authority, the Town Council shall set a date for hearing within the following thirty (30) days. Within twenty (20) days of the closing of a public hearing on the application, the Town Council shall act on the application. The Town Council shall consider but shall not be bound by the recommendation of the Vail Local Housing Authority. The Town Council may approve, either in accordance with the recommendation of the Vail Local Housing Authority or in modified form, or the Council may deny the application. d. Appeal: Administrator and Town Council decisions may be appealed in accordance with the provisions in section 12 -3 -3, "Appeals ", of this title. 3. Criteria and Findings. a. Criteria. Before acting on an Employee Housing Deed Restriction Exchange application, the Vail Local Housing Authority and Vail Town Council shall consider the following criteria with respect to the application. (1) The proximity and accessibility of the proposed EHU(s) to the Commercial Job Core and public transportation, and (2) The size of the proposed EHU(s) in relation to the minimum employee housing unit sizes established for Commercial Linkage mitigation in Section 12 -23 -3, Vail Town Code, and (3) The effect of any homeowners association dues or maintenance fees imposed upon the proposed EHU(s) on the affordability of the proposed unit for an employee, and (4) The correlation between any homeowners association fees imposed upon the proposed EHU(s) and the services and amenities provided by the homeowners association. (5) The extent to which the exchange is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and Town of Vail Page 7 6/7/20 11 14 -1 -7 (6) The extent to which the exchange presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and (7) The extent to which the exchange provides for the growth of an orderly viable community and serves the best interests of the community as a whole. b. Necessary Findings. Before recommending and /or granting an approval of an Employee Housing Deed Restriction Exchange application, the Vail Local Housing Authority and the Vail Town Council shall make the following findings with respect to the application. (1) The application meets the general requirements of Section 12- 13 -5D, Vail Town Code, and (2) The application is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the Town and (3) The application furthers the general and specific purposes of the zoning regulations, Section 12 -1 -2, Vail Town Code, and the employee housing regulations, Section 12 -13 -1, Vail Town Code, and (4) The application promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. III. BACKGROUND On January 2, 2009, the Vail Town Council adopted the Employee Housing Unit Exchange Program. The program allows owners of deed restricted employee housing units (EHU) to exchange the existing deed restricted unit for another unit elsewhere in the Town of Vail. The program applies to all non - appreciation capped, deed - restricted employee housing units in Vail that are attached to a private residence and are not required by the Town's Zoning Regulations to mitigate a development's impact. There are currently 699 deed restricted employee housing units in Vail. There are numerous variations within each of the restrictions. Generally, there are five categories of restrictions based on the time the restriction was recorded. 1. Deed Restriction: not required to rent or provide annual verification 2. Deed Restriction: not required to rent and must provide annual verification 3. Deed Restriction: required to rent and required to provide annual verification 4. Deed Restriction: required to rent and provide notarized affidavit annually 5. Deed Restriction: required to be owner - occupied, appreciation capped and provide annual verification Town of Vail Page 8 6/7/20 11 14 -1 -8 By the Numbers: • 31 deed restricted secondary units (aka EHUs) are not required to be rented or provide annual verification • 22 EHUs are not required to be rented and must provide annual verification • 81 EHUs are owner - occupied and appreciation capped • 45 EHUs are owned by the Town of Vail • 108 EHUs are required to mitigate development impacts • 198 EHUs are at Timber Ridge Village Apartments • 142 EHUs are at Middle Creek Village Apartments Approximately 125 EHUs are eligible to participate in the Employee Housing Deed Restriction Exchange Program. Included in the 125 are 53 EHUs that are not required to be employee occupied. The current Exchange Program does not take into account the "reduced value" to the Town of Vail of those particular deed restrictions. As of April 11, 2011, the program has not fulfilled the goal of converting non - performing EHUs into employee occupied, performing EHUs in Vail, as no one has utilized the program. If no action is taken, this will likely continue to be the scenario, with no participants in the program. This will further exacerbate the underlying problem of EHU enforcement. Each year, Staff confirms compliance with the deed restriction through an annual affidavit by EHU owners. However, the validity of certain information within the affidavits has been called into question. Further, Town resources spent on the affidavit process could be spent elsewhere if employee housing deed restrictions could be lifted from non - performing EHUs. On February 3, 2011, the Vail Town Council received a letter from a Vail property owner requesting an amendment to the program to provide an additional method of exchange. Based upon the letter and the fact that no one has utilized the program, Staff presented proposed amendments at the Vail Town Council public hearing on March 1. Town Council requested recommendations on the following proposals: 1. An exchange rate for units approved prior to Ordinance No. 14, Series of 1994, that do not require the EHU to be occupied; and 2. A proposed method of exchange that may be financially more practical for a local EHU owner to utilize the exchange program. The Town Council requested Staff present the proposed amendments to the VLHA and include their recommendation(s) in any proposed amendments. The Vail Local Housing Authority met on March 23 and April 12, 2011 and made recommendations for the proposed amendments that are outlined in Section IV of this memorandum. On April 11, 2011, the Planning and Environmental Commission held a hearing on this item. The PEC tabled the item with a request that Staff come back with proposed amendments addressing the 31 units similar to Mr. Aasland's, 100% pay in lieu, an Town of Vail Page 9 6/7/20 11 14 -1 -9 option that includes the ability to bank excess square feet, a proposal to allow for leeway on square feet for the proposed EHU and a recommendation from the Vail Local Housing Authority. IV. PROS AND CONS The following are pros and cons for adopting the proposed regulations: PROS: • Allows removal of non - performing EHUs in exchange for EHUs that actually house employees • Creates a partnership with the community for the creation of more performing EHUs • Allows Town resources to be used more effectively for compliance instead of enforcement • Provision of cash to the Town of Vail will allow the Town to deed restrict a wider variety of unit types • Reduces disincentives to building EHUs for owners concerned about the deed restriction being tied to the land, not the improvements CONS: • Allows deed restrictions to be removed from the commercial core, which could reduce the dispersal of EHUs throughout the town and further concentrate EHUs in less expensive neighborhoods • The proposed program would allow EHU owners to pay their way out of their employee housing commitment • Due to changes in GRFA requirements, EHUs that are eliminated in the commercial job core will not likely be replaced in a similar location V. VAIL LOCAL HOUSING AUTHORITY RECOMMENDATION At the March 1, 2011 Vail Town Council public hearing, the Town Council requested the Vail Local Housing Authority (VLHA) provide a recommendation regarding proposed changes to the Employee Housing Deed Restriction Exchange Program, 12 -13 -5, Vail Town Code. The VLHA met on March 23 and April 12 to discuss proposed amendments as well as the Planning and Environmental Commission's (PEC) input from the PEC's April 11 public hearing. The VLHA recommends amending the Exchange Program in order to increase the number of occupied employee housing units and moving the Town closer to fulfilling its goal of providing deed restricted employee housing for at least 30% of Vail's workforce within the Town of Vail. At the March 23, 2011 VLHA Meeting, the VLHA: • Affirmed that allowing existing EHU owners to exchange a non - performing EHU is a win -win for the Town, the existing EHU owner, and employees Town of Vail Page 10 6/7/20 11 14 -1 -10 • Recognized the Exchange Program is an efficient use of Town resources • Unanimously recommended adding additional methods of exchanging EHUs in order to convert non - performing EHUs into performing EHUs • Recommends adding two new methods of exchanging an EHU • A full cash payment option • A deed restriction relocation option At the April 12, 2011 VLHA Meeting, the VLHA: • Re- affirmed that a successful Exchange Program is an efficient tool for the conversion of non - performing EHUs into performing EHUs • Acknowledged that no EHU owner is ever compelled to use the Exchange Program and that each EHU owner that does utilize the Exchange Program will be motivated by their personal reasons to participate in the Exchange Program • Discussed the PEC's recommendations on proposed amendments • Re- affirmed that a cash payment option is an important option to maintain • Any funds collected shall be placed in a dedicated fund and be timely spent establishing new EHUs in Vail • The decision to make a cash payment is up to the existing EHU owner • Cash payments allow for an exact exchange with no credits remaining • There will always be a need for funds • Buy -down existing units so they are not converted to second homes • Opportunities to create new units in the future • By allowing a cash payment option of 1 % to 100% there is no need to create a separate "bank" program • Existing EHU owners may choose to relocate the EHU and provide a unit that is the size they determine is most effective for them • If the unit is smaller than required they will pay a fee -in -lieu for the difference in required square feet • They may choose a unit that is larger than required because it better meets their needs • Examples: generates more rental income per square foot, costs less per square foot, or meets some other need they have • No credits should be given for square feet in excess of the required square feet • By allowing cash payments and not providing a "bank" program each exchange is completed in one transaction with the Town VI. APPLICABLE DOCUMENTS Staff believes the following documents are relevant to the review of this proposal: Title 12, Zoning Regulations, Vail Town Code (in part) Town of Vail Page 11 6/7/20 11 14 -1 -11 12 -1 -2. Purpose A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B. Specific. These regulations are intended to achieve the following more specific purposes. 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. 12 -13 -1. Purpose: The town's economy is largely tourist based and the health of this economy is premised on exemplary service for Vail's guests. Vail's ability to provide such service is dependent upon a strong, high quality and consistently available work force. To achieve such a work force, the community must work to provide quality living and working conditions. Availability and affordability of housing plays a critical role in creating quality living and working conditions for the community's work force. The town recognizes a permanent, year round population plays an important role in sustaining a healthy, viable community. Further, the town recognizes its role in conjunction with the private sector in ensuring housing is available. VII. REVIEW CRITERIA 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and Staff finds the text amendments further the general and specific purposes of the Zoning Regulations. Specifically, the purpose of the text amendments is to exchange non - performing (under - utilized) EHUs for performing EHUs. This in turn will further Town of Vail Page 12 6/7/20 11 14 -1 -12 the Town's goal of providing deed - restricted employee housing for 30% of the workforce. This will further the specific goals of the Zoning Regulations, including conserving and maintaining "established community qualities and economic values," encouraging "a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives" and "to otherwise provide for the growth of an orderly and viable community." 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and The Town of Vail adopted the Employee Housing Strategic Plan on September 2, 2008 and established the goal "to ensure there is deed restricted housing for at least 30% of Vail's workforce within the Town of Vail." Increasing the number of performing EHUs with the Exchange Program will further the Town's efforts in achieving its adopted goal. As of April 11, 2011, the program has not fulfilled the goal of converting non- performing EHUs into employee occupied, performing EHUs in Vail, as no one has utilized the program. If no action is taken, this will likely continue to be the scenario, with no participants in the program. The current policy has not been effective in increasing the number of occupied EHUs in Vail. The proposed amendments will increase Vail's ability to control the requirements, occupancy, and types of future EHUs. Additionally, the proposed amendments allow the Town the flexibility to provide a wider variety of EHU types than has historically been offered in Vail. The proposed regulations will also further the goal of the Town of Vail to use resources efficiently. Each year, Staff confirms compliance with the deed restriction through an annual affidavit by EHU owners. However, the validity of certain information within the affidavits has been called into question. Further, Town resources spent on the affidavit process could be spent elsewhere if employee housing deed restrictions could be lifted from non - performing EHUs. The proposed regulations will increase the Town's efficiency and occupancy of EHUs. 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and The Exchange Program has not been utilized since it was adopted in January 2009. Staff believes the changes in real estate values since the time when most employee housing units were built and when the EHU Exchange Program was adopted have changed substantially enough to warrant amending the subject regulation. Additionally, the current regulations do not reflect the Town's focus on increasing the qualitative aspects of employee housing units. 4. The extent to which the text amendment provides a harmonious, convenient, Town of Vail Page 13 6/7/20 1 14 -1 -13 workable relationship among land use regulations consistent with municipal development objectives. The proposed regulation amendment requires the exchange EHU remain in full compliance with the Town's zoning regulations. This will prevent a property owner from benefiting unfairly from the proposed amendment. EHUs are allowed in all residential zone districts therefor future EHUs will also be in full compliance with the Town's zoning regulations. Therefore, Staff believes the proposed text amendments will facilitate and provide a harmonious, convenient, workable relationship among land use regulations consistent with the Town of Vail master plans and development objectives. 5. Such other factors and criteria the Commission and /or Council deem applicable to the proposed text amendment. VIII. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to forward a recommendation of approval of this request, the Community Development Department recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12- 13-5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto." Should the Planning and Environmental Commission choose to forward a recommendation of approval with modifications to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission include the following modifications in the motion: "The Planning and Environmental Commission recommends the following modifications to the prescribed regulations amendments. 1. Section 12- 13 -D3, Exchange Rate for Proposed EHUs, Vail Town Code, shall add the following sentence. If the proposed EHU is 90% or more of the required Town of Vail Page 14 6/7/20 11 14 -1 -14 size per the formulas below, no additional fee -in -lieu payment shall be required. 2. Section 12- 13 -D5, No Credit Given, Vail Town Code, shall be stricken and replaced with the following language. Exchange Bank: If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in Subsection D3 above, the additional gross residential floor area (GRFA) may be banked in an EHU exchange bank to be used in the future for a portion of the required square footage of another exchange under this section of the code. Any gross residential floor area (GRFA) in the EHU exchange bank shall not used for Commercial Linkage or Inclusionary Zoning requirements established by Chapters 12 -23 and 12 -24 of this code." Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section VII of Staffs April 25, 2011 memorandum and the evidence and testimony presented, the Planning and Environmental Commission finds. 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12 -1 -2, Purpose, and 12 -13 -1 Purpose, Vail Town Code, and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." IX. ATTACHMENTS A. Draft Ordinance No. 4, Series of 2011 Town of Vail Page 15 6/7/201 i4 -1 -15 ORDINANCE NO. 10 SERIES 2011 AN ORDINANCE AMENDING CHAPTER 12 -13 -5: EMPLOYEE HOUSING DEED RESTRICTION EXCHANGE PROGRAM, VAIL TOWN CODE, TO AMEND THE DEED - RESTRICTION EXCHANGE PROGRAM, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on January 6, 2009, the Vail Town Council adopted Ordinance No. 31, Series of 2008, which established Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, in order to allow owners of employee housing units to remove their deed restriction in exchange for giving the Town of Vail a free market dwelling unit fee simple; and, WHEREAS, since the adoption of Ordinance No. 31, Series of 2008, no property owners have utilized the employee housing deed restriction exchange program; and, WHEREAS, on March 23, 2011, the Vail Local Housing Authority of the Town of Vail held a public hearing and reviewed and forwarded a recommendation of approval to the Vail Town Council for the proposed text amendments to the Zoning Regulations; and, WHEREAS, on April 25, 2011, the Planning and Environmental Commission of the Town of Vail held a public hearing and reviewed and forwarded a recommendation of approval to the Vail Town Council for the proposed text amendments to the Zoning Regulations in accordance with the procedures and criteria and findings outlined in Section 12 -3 -7 of the Vail Town Code; and, WHEREAS, the Town Council finds and determines that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, based upon Section 5 of the Staff memorandum to the Planning and Environmental Commission dated April 11, 2011, and the evidence and testimony presented; and, WHEREAS, the Town Council finds and determines that the amendments further the general and specific purposes of the Zoning Regulations, based upon Section 5 of the Staff memorandum to the Planning and Environmental Commission dated April 11, 2011, and the evidence and testimony presented; and, WHEREAS, the Town Council finds and determines that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality, based upon Section 5 of the Staff memorandum dated April 11, 2011; and, NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: The proposed regulation amendments are as follows (text that is to be added is bold italics) : Ordinance No. 10, Series of 2011, first reading 6/7/2011 14 -2- 1 Section 1 . Section 12- 13 -5A, Purpose, Vail Town Code is hereby amended as follows: A. Purpose: The purpose of this Section is to provide occupied livable, affordable employee housing units within the Town of Vail through the establishment of an employee housing unit deed restriction exchange program. The exchange program allows the Town Council to release e# a deed restriction from an existing employee housing unit in exchange for t"° ^^nVe yaQ +a P f - free d4et rhnialling unit to tho Town of " °i' t^ be , -pe nestri^t94 the placement of an employee housing deed restriction on another dwelling unit and/or a fee -in -lieu payment made to the Town of Vail. Section 2 . Section 12- 13 -58, Definitions, Vail Town Code is hereby amended as follows: B. Definitions: For the purpose of this Section: Exchange EHU: The existing non -price appreciation capped employee housing unit or other unit with an employee housing deed restriction that is being proposed to have the deed restriction released as part of this program. Proposed EHU: The existing dwelling unit that is being proposed to receive an be y994 tthp- T of 14 for the r,uFpe a o f r a6n ng a n employee housing deed restriction as part of this program. Section 3 . Section 12- 13 -5C, General Requirements, Vail Town Code is hereby amended as follows: C. General Requirements: The Town Council may approve the removal of an employee housing deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction on to another dwelling unit, and /or the payment of a fee -in -lieu. 1. Exchange EHU requirements: a. The exchange EHU shall not be part of any employee housing project developed or deed - restricted (in part or in whole) by the Town of Vail. b. The exchange EHU shall not be part of any on -site employee housing mitigation required by inclusionary zoning, commercial linkage, or as part of an approved development plan. c. The property that includes the exchange EHU shall comply with the prescribed development standards (density controls including GRFA and number of units, site coverage, landscaping and parking requirements, etc.), as outlined in the applicable zone district section of Title 12, Zoning Regulations, Vail Town Code, upon exchange of the deed restrictions. 2. Proposed EHU requirements: a. The proposed EHU(s) shall be located within the Town of Vail. b. The proposed EHU(s) shall be within a homeowners association that does not preclude deed restricted units, does not have a right of first refusal, does not have right to approve the sale or the sale contract, or have any other requirements deemed to be similarly restrictive by the Administrator. 2 Ordinance No. 10, Series of 2011, first reading 6/7/2011 14 -2 -2 c. The proposed EHU shall comply with the minimum size requirements shown in Table 13 -2. TABLE 13 -2: MINIMUM SIZE OF PROPOSED EHUs Type Of Unit Minimum Size (GRFA) Studio 438 square feet 1 bedroom 613 square feet 2 bedroom 788 square feet 3+ bedrooms 1,225 square feet d. The proposed EHU shall contain a kitchen facility or kitchenette and a bathroom. e. The property on which the proposed EHU is located shall comply with Chapter 12 -10, Off - Street Parking and Loading, Vail Town Code. f. The proposed EHU shall have its own entrance. There shall be no interior access from the proposed EHU to any dwelling unit to which it may be attached. 3. Exchange Rate for Proposed EHUs: a. If the exchange EHU(s) is within the commercial job core and the proposed EHU(s) is also within the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two (2) times the gross residential floor area (GRFA) of the exchange EHU. b. If the exchange EHU is within the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of three (3) times the gross residential floor area (GRFA) of the exchange EHU. c. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is inside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of one and one -half (1.5) times the gross residential floor area (GRFA) of the exchange EHU. d. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two (2) times the gross d E = H 9W E- CC` ` , , residential floo 7{..Z1. r , � a ' rea '� -a (GRFA) of the exch EHU. l �.,,., /. �,., 4. *G9P GR,' Fee in L T he ar c' #GaptT l"Iay 919Gt t r iide a r-epncp L /. tYlTl-i O v f r the pr - epese aFea (G at the -- Fate - te-stabli-stte ' T wp Go - Upnil fnr Innluciepany Zoning payments of fee in lie established by Chapter 42 _2Q Inr4usienany Z oning , Vail Tow code. 45. No Credit Given: If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in Subsection D3 above, the additional gross residential floor area (GRFA) be eligible for use as any form of future credit or for the Commercial Linkage or Inclusionary Zoning employee housing mitigation banks established by Sections 12 -23 -7 and 12 -24 -7, Vail Town Code. 3 Ordinance No. 10, Series of 2011, first reading 6/7/2011 14 -2 -3 ape/ the eel € 4 W shall AiAl ' GOMP i "4M a# r eq—Wr2Pq2/atS o f T 9 12 i A Wation and T 4 Il en Q daFds Vail Tow On nhao of TTG� c FiACTG�i'RTGT 9 Q - ITR� � �� nm t GT'IfQ f n Gode f Up On n a O VT'IA�T th rlaarl racfrinfionc T G nVeYanna of -Fepesed E The n�sed EHU shall b e nonVeYeGy a ccc- vrmpl9y–tG tr Tb�ninv p of 14;;U 5. Fee -In -Lieu: The applicant may elect to provide a fee -in -lieu payment to the Town of Vail for any portion of the required square footage not provided by a proposed EHU. The town shall only use monies collected from the fees in lieu to provide new employee housing. The applicant shall pay a fee -in -lieu equal to the following formulas: Existing EHU sq ft x multiplier x inclusionary zoning fee = Fee -in -Lieu Payment a. If the exchange EHU was approved prior to July 22, 1994 and has a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees..., " the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 1 b. If the exchange EHU was approved after July 22, 1994 and /or does not have a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees... ", and If the exchange EHU is outside of the commercial job core, the formula for fee -in- lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 2 c. If the exchange EHU was approved after July 22, 1994 and /or does not have a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees... ", and is within the commercial job core, the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 3 Section 4 . Section 12- 13 -5F, Review Process , Vail Town Code is hereby amended as follows: F. Review Process: 2. Review Procedures: d. Appeal: Administrator and Town Council decisions may be appealed in accordance with the provisions in section -3-3 "Appeals ", of this title. 4 Ordinance No. 10, Series of 2011, first reading 6/7/2011 14 -2 -4 3. Criteria and Findings: a. Criteria: Before acting on an Employee Housing Deed Restriction Exchange application, the Vail Local Housing Authority and Vail Town Council shall consider the following criteria with respect to the application: 1. The proximity and accessibility of the proposed EHU(s) to the Commercial Job Core and public transportation; and 2. The size of the proposed EHU(s) in relation to the minimum employee housing unit sizes established for Commercial Linkage mitigation in Section 12 -23 -3, Vail Town Code; and 3. The effect of any homeowners association dues or maintenance fees imposed upon the proposed EHU(s) on the affordability of the proposed unit for an employee; and 4. The correlation between any homeowners association fees imposed upon the proposed EHU(s) and the services and amenities provided by the homeowners association. 5. The extent to which the exchange is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and 6. The extent to which the exchange presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and 7. The extent to which the exchange provides for the growth of an orderly viable community and serves the best interests of the community as a whole. Section 5 . If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 6 . The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 7 . The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 8 . All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. 5 Ordinance No. 10, Series of 2011, first reading 6/7/2011 14 -2 -5 INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 7 th day of June, 2011 and a public hearing for second reading of this Ordinance set for the 21S day of June, 2011, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor Attest: Lorelei Donaldson, Town Clerk 6 Ordinance No. 10, Series of 2011, first reading 6/7/2011 14 -2 -6 TOWN OF VAQ ' VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: Second Reading of Ordinance No. 13, Series of 2011, An Ordinance Defining Electronic Personal Assistive Mobility Device ( "EPAMD "); Establishing Regulations Regarding he Operation of Such Devices in the Town of Vail; and Setting Forth Details in Regard Thereto. PRESENTER(S): Matt Mire ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 13, Series of 2011, on second reading. BACKGROUND: Electronic Personal Assistive Mobility Devices ( "EPAMD ") have been operating in the Town on a trial basis since June of 2009, and the Council now wishes to permit the operation of EPAMD'S on a permanent basis. Pursuant to Colorado law this Ordinance is required to permit the operation of EPAMD's over and upon the Town's recreation paths. STAFF RECOMMENDATION: Approve, approve with modifications, or deny Ordinance No. 13, Series of 2011, on second reading. ATTACHMENTS: Ordinance No. 13, Series of 2011 6/7/2011 ORDINANCE NO. 13 SERIES OF 2011 AN ORDINANCE DEFINING ELECTRONIC PERSONAL ASSISTIVE MOBILITY DEVICE ( "EPAMD "); ESTABLISHING REGULATIONS REGARDING THE OPERATION OF SUCH DEVICES IN THE TOWN OF VAIL; CODIFYING SUCH REGULATIONS; AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Town of Vail, in the County of Eagle and State of Colorado (the "Town "), is a home rule municipal corporation duly organized and existing under laws of the State of Colorado and the Town Charter (the "Charter "); WHEREAS, the members of the Town Council of the Town (the "Council ") have been duly elected and qualified; WHEREAS, the Town promotes alternative transportation modes that are environmentally friendly and that reduce society's dependence on fossil fuels; WHEREAS, by this Ordinance, the Town desires to define the term Electric Personal Assisted Mobility Device ( " EPAMD "), declare EPAMDs to be exempt from motor vehicle traffic laws except as provided herein, implement regulations for the operation of EPAMDs in the Town, and codify such regulations; WHEREAS, EPAMD's have been operating in the Town on a trial basis since June of 2009, and the Council now wishes to permit the operation of EPAMDs on a permanent basis, pursuant to the restrictions set forth herein; WHEREAS, pursuant to Colorado law, this Ordinance is required to permit the operation of EPAMDs over and upon the Town's recreation paths; and WHEREAS, the Town Council finds and determines that the public health, safety, and welfare will be served by the adoption of this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Section 7 -4 -1 of the Vail Town Code is hereby amended by the addition of the following new definition: ELECTRONIC PERSONAL ASSISTIVE MOBILITY DEVICE ( "EPAMD "): A self - balancing, nontandem two - wheeled device, designed to transport only one person, which is powered solely by an electronic propulsion system producing an average power output of no more than seven hundred fifty watts. Section 2. Section 7 -4 -4 of the Vail Town Code is hereby renumbered to be Section 7 -4 -5. Section 3. Chapter 4 of Title 7 of the Vail Town Code is hereby amended by the addition of a new Section 7 -4 -4, to read as follows: Ordinance No. 13, Series of 2011 6/7/2011 15-1-1 7 -4 -4 EPAM Ds. A. Model Traffic Code. 1. Except as provided by this Ordinance, the operation of EPAMDs in the Town shall be exempt from the Model Traffic Code adopted by the Town as well as such other Town ordinances that regulate motorized vehicles in the Town. 2. For the purposes of operation, parking, and equipment and subject to the additional regulations set forth in this Section, EPAMDs shall be considered bicycles and shall be subject to the provisions and regulations concerning bicycles contained in the Model Traffic Code adopted by the Town. B. Prohibited Areas. It is unlawful for any person to operate an EPAMD in or on the following: 1. Vail Nature Center; 2. Betty Ford Alpine Garden; 3. Village Streamwalk (currently pedestrian only); 4. Children's playgrounds; 5. Turf areas; 6. Natural /unimproved areas; and 7. Streets and highways that are parts of the state highway system. C. Minimum Age. An EPAMD shall only be operated in the Town by persons sixteen (16) years of age or older. D. Exception. The provisions of this Section limiting the use of EPAMDs shall not apply to an EPAMD that is operated by a person with a mobility impairment caused by physical disability who uses the device to enhance that person's mobility. E. Equipment. All EPAMDs operated within the Town shall be equipped with an audible warning device. Section 4. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 5. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Ordinance No. 13, Series of 2011 15-1 -2 Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 17 day of May, 2011, and a public hearing for second reading of this Ordinance set for the 7 day of June, 2011, at 6:00 P.M. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 7th day of June, 2011. Richard Cleveland Town Mayor Attest: Lorelei Donaldson Town Clerk Ordinance No. 13, Series of 2011 6/7/2011 15 -1 -3 TOWN OF VAQ VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 7, 2011 ITEM /TOPIC: This work session will focus on the provision of meeting space, employee housing, hot beds, and office space within the proposed Ever Vail development. This presentation is intended to further the understanding of several elements of the Ever Vail development which are included in the proposed Resolution No. 6, Series of 2011, amendments. Lionshead Redevelopment Master Plan (Resolution No. 6, Series of 2011Y A request for a recommendation to the Vail Town Council for an amendment to the Lionshead Redevelopment Master Plan, pursuant to Section 2.8, Adoption and Amendment of the Master Plan, Lionshead Redevelopment Master Plan, to amend the detailed plan recommendations for West Lionshead (Ever Vail), and setting forth details in regard thereto. (PEC 110002) Major Subdivision: A request for a review of a preliminary plan for a major subdivision, pursuant to Chapter 13 -3, Major Subdivision, Vail Town Code, to allow for the creation of two lots for the redevelopment of the properties known as Ever Vail (West Lionshead), located at 862, 923, 934, 953, 1000 and 1031 South Frontage Road West, and the South Frontage Road West right -of- way/unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080062) Rezoning (Ordinance No. 7, Series of 2011y A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to allow for a establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision located generally at 862, 923, 934, 953, 1000, and 1031 South Frontage Road, and the South Frontage Road right -of- way /unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080061) Special Development District Amendment (Ordinance No. 8, Series of l y. 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- 9A -10, Amendment Procedures, Vail Town Code, to allow for the removal of Development Area D (Glen Lyon Office Building) from Special Development District No. 4, Cascade Village, and for a zone district boundary amendment, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to include the subject property in the Lionshead Mixed Use 2 District, located at 1000 South Frontage Road West /Lot 54, Glen Lyon Subdivison, and setting forth details in regard thereto. (PEC090036) Title 12, Zoning Regulations, Vail Town Code, Amendment ( Ordinance No. 9, Series of 2011Y. A request for a final recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Section 12- 10-19, Core Areas Identified, Vail Town Code, to amend the core area parking maps to include "Ever Vail" (West Lionshead) within the "Commercial Core" designation, and setting forth 6/7/2011 details in regard thereto. (PEC080065) PRESENTER(S): Vail Resorts Development Company and Warren Campbell ACTION REQUESTED OF COUNCIL: The Community Development Department requests the Vail Town Council continue the Major Subdivision, Ordinance No. 7, 8, and 9, Series of 2011, and Resolution No. 6, Series of 2011 to the June 21, 2011 public hearing. BACKGROUND: Lionshead Redevelopment Master Plan: On January 24, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for proposed amendments to the Lionshead Redevelopment Master Plan, by a vote of 3 -1 -2 (Rediker opposed, Viele and Cartin recused). Major Subdivision: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, on the preliminary plan for the major subdivision to establish Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5 -0 -2 ( Viele and Cartin recused). Rezoning: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a zone district boundary amendment to establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5 -0 -2 ( Viele and Cartin recused). Special Development District Amendment: On January 24, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a major amendment to Special Development District (SDD) No. 4, Cascade Village, to remove the Glen Lyon Office Building from the SDD in order for it to be incorporated into the Ever Vail Subdivision, by a vote of 4 -0 -2 ( Viele and Cartin recused). Title 12, Zoning Regulations, Vail Town Code, Amendment: On January 11, 2010, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a prescribed regulations amendment to Section 12- 10 -19, Core Areas Identified, Vail Town Code, by a vote of 4 -0 -2 ( Viele and Cartin recused). STAFF RECOMMENDATION: The Community Development Department recommends the Vail Town Council continue the public hearing on the request for the Major Subdivision, Ordinance No. 7, 8, and 9, Series of 2011, and Resolution No. 6, Series of 2011 to the June 21, 2011 public hearing. ATTACHMENTS: Staff Memorandum Power Point Presentation 6/7/2011 0 TOWN Of VAIL Memorandum TO: Vail Town Council FROM: Community Development Department DATE: June 7, 2011 SUBJECT: Resolution No. 6, Series of 2011, a resolution to amend Chapter 4, Recommendations — Overall Study Area and Chapter 5, Detailed Plan Recommendations, Lionshead Redevelopment Master Plan, pursuant to Section 2.8, Adoption and Amendment of the Master Plan, Lionshead Redevelopment Master Plan, to amend the recommendations for West Lionshead (Ever Vail) and setting forth details in regard thereto. I. DESCRIPTION OF THE REQUEST The purpose of this agenda item is to continue the review of Resolution No. 6, Series of 2011. Resolution No. 6, Series of 2011, is a resolution amending Chapter 4, Recommendations — Overall Study Area and Chapter 5, Detailed Plan Recommendations of the Lionshead Redevelopment Master Plan to allow for amendments to Sections 4.4, View Corridors; 4.6.2, South Frontage Road; 5.17, West Lionshead; and 5.20 Eagle River Water and Sanitation District. The proposed amendments are intended to facilitate future development of the Ever Vail Project in the West Lionshead area. This work session will focus on the provision of meeting space, employee housing, hot beds, and office space within the proposed Ever Vail development. This presentation is intended to further the understanding of several elements of the Ever Vail development which are included in the proposed Resolution No. 6, Series of 2011, amendments. II. ACTION REQUESTED OF COUNCIL The Community Development Department requests the Vail Town Council continue the Major Subdivision, Ordinance No. 7, 8, and 9, Series of 2011, and Resolution No. 6, Series of 2011 to the June 21, 2011 public hearing. III. STAFF RECOMMENDATION The Community Development Department recommends the Vail Town Council continue the public hearing on the request for the Major Subdivision, Ordinance No. 7, 8, and 9, Series of 2011, and Resolution No. 6, Series of 2011 to the June 21, 2011 public hearing. IV. ATTACHMENTS A. Power Point Presentation dated June 7, 2011 6, %7 '20 16 -1 -i 77 • We PG�aOPO di, � y ! PED P O S ; /� TO l a OP' r iI / r /� • vo 01, TRANSIT CENTER 9 ENIRANCE �� E5 / . 11 PROPOSED FRONTA E ROAD BRIDGE \_ �T E6 CLIMBING WALL TOWER '/ • �� OTFI PI AlA 4 . j • �O PEDESTRIAN BRIDGE •� a . - r i KeyTopics for Future Discussion • Parking • Meeting Space • Employee Housing • Hot Beds • Office • Heights • Setbacks 2 Meetin Space • EverVail includes a total of 9,807 sf of 1 � W � Ep os ° •' - � •y meetin ID • Provided in two 0 6,320 sf in Hotel 1) • ���� Meeting Space • s i n - -.X �. Locations Meet S Comparisons Location S q. Ft. Cascade 45,000 Marriott 21,000 EverVail 9,807 Arrabelle 9,494 ManorVail 8,700 Four Seasons 8,150 Sebastian 7,000 Lodge at Vai l 6,000 Donovan Pavillon 5,200 Sonnenalp 4,821 Vail Town Council Chambers 750 Source: Calls,Websites, research of approvals. Some of the examples above include restaurant space. 4 Meeting S • Requires a Conditional Use Permit in the LMU -2 Zone District % b M ,xN'j,. r • Current LHRMP is silent as to meeting space in West Lionshead • Proposed amendments to LHRMP .. encourage meeting space 5 a Meeting Space • Parking: Requires 23 parking spaces • Employee Housing: Generates 8 employees (At 20% Mitigation Rate = 1.6 employees to be housed _ 560 sfl 6 O ffice � � 4 / / t ota l of 34,669 sf of office space P rovid ed thr � a bu ildi ng s: � 2, • • _ ! Locations Office • West Lionshead area currently includes 29,836 sf of office uses within GLOB, Cascade Crossing, Vail Professional Building • EverVail will include 34,669 sf of office • Net increase of 4,846 sf of office in EverVail • No net loss of office only applies in West Lionshead 8 Office • Requires a conditional use permit in LMU -2 • Not allowed on the I st Floor in LMU -2 • Office replacement/increase is a requirement of the current LHRMP • Proposed amendments clarify the amount of office space required in EverVail 9 O ffice • Parking: Requires 72 parking spaces • Employee Housing: Generates 15 employees (At 20% Mitigation Rate = 3 employees to be housed = — 1,050 s� (EHU based on net new 3,846 sq. ft. of office only) 10 Hotel � 4 d _ 1 H ote l R ooms 0 Located within 2 FNI1UNCi. �'� r� C1 0. / _ I'E {pil •:AM iii 7 r � a /Uitl�iRAZ4 y � j buildin • EI 56 Rooms • 4 / Z •• r F,, `1 a •. , • Roo '� / •• W V V RAN '� Hotel Hotel Hotel Rooms Hotel Hotel Rooms Marriott 314 Lodge at Vail 77 Cascade 292 Roost 72 Sonnenalp 127 Tivoli 62 Four Seasons 118 Gasthof Gramshammer 38 Evergreen 105 Arrabelle 36 EverVail 102 Sitzmark 35 Sebastian 100 Austria Haus 25 Holiday Inn 96 Christiania 22 Lionshead Inn 85 Vail Mountain Lodge 20 2 Source: Calls,Websites, research of approvals. Hotel • Permitted use in the LMU -2 Zone District • Current LHRMP is silent to a hotel in West Lionshead • Proposed amendments to LHRMP identify hotel as an appropriate use in EverVail 13 H ote l • Parking: Requires 55 parking spaces • Employee Housing: Generates 71 employees (At 20% Mitigation Rate = 14.2 employees to be housed = —4,970 s� 14 LHRMP: Live Beds 2.3.3 Stronger Economic Base Through Increased Live Beds "In order to enhance the vitality and viability of Vail, renewal and redevelopment in Lionshead must promote improved occupancy rates and the creation of additional bed base ( "live beds" or "warm beds ") through new lodging products. Live beds and warm beds are best described as residential or lodging rooms or units that are designed for occupancy by visitors, guests, individuals, or families on a short term rental basis. In order to improve occupancy rates and create additional bed base in Lionshead, applications for new development and redevelopment projects which include a residential component shall provide live beds in the form of accommodation units, fractional fee club units, lodge dwelling units, timeshare units, attached accommodation units (Le, lock -off units), or dwelling units which are included in a voluntary rental management program and available for short term rental. Further, it is the expressed goal of this Plan that in addition to creating additional bed base through new lodging products, there shall be no net loss of existing live beds within the Lionshead Redevelopment Master Plan study area:' 15 LH RM P pg 2 -2 LHRMP: Live Beds 4.13.1 Live Bed Definition Pursuant to Policy Objective 2.3.3, live beds (and warm beds) are defined as residential or lodging rooms or units that are designed for occupancy by visitors, guests, individuals, or families, on a short term rental basis. A live bed may include the following residential products: accommodation units, fractional fee club units, lodge dwelling units, timeshare units, attached accommodation units (i.e., lock -off units), and dwelling units which are included in a voluntary rental management program and available for short term rental. 4.13.2 Location of Live Beds Live beds should be located in Lionshead pursuant to the Lionshead Mixed Use and 2 zone districts. All properties within Lionshead, when developing or redeveloping and providing new residential or lodging products, should provide live beds as defined herein. 16 LH RM P pg 4 -40 Hot,Warm, &Cold Beds "Live Beds" • Hot =Hotel Rooms • Warm= Timeshare, � Fractional, Short -Term Rental Units • Cold= Whole Ownership Condos (not in a rental program) - Live e s 'r' Hot Beds4dF Warm Beds Cold Bed IL hLM 49 Lock -Offs It 102 Hotel Rooms ~191 Units in Short- 41 EHUs Term Rental Program — 190 Units (50 %) Disclaimer: A short -term rental program is voluntary and cannot be mandatory. Our units are smaller and more "rentable" to encourage participation. 18 Live e s 4.13 Live Beds "It has been the experience in Lionshead that condominiums projects which include a voluntary rental management program have higher occupancy rates which exceed the occupancy rates of hotel products, and therefore tend to provide more live beds and produce more lodging tax revenues to the Town." LH RM P pg. 4 -40 19 (amended language from 2006) Employee Housing Total Requirements • Commercial Linkage Requirement: P> 67.53 employees to be housed (— 1 6,882 - 23,635 sf) • Inclusionary Requirement: 57,132 sf of employee housing required 20 EverVail Uses Use Units Sq. Ft. .... Hotel 102 94 Retail 7 31,527 Eating & Drinking 4 22 Office 3 34,669 Meeting Space 2 9,807 Spa 1 9,950 Children's Services 1 12,172 Residential 381 570,318 Employee Housing (on -site only) 41 49,659 21 Employee Housing • Total of • Located within 5 buildings EHU Employee Housing • Permitted use in LMU -2 Zone District • Current LHRMP Assumed that EHUs displaced from the core site would go to either the NDL or West Lionshead J> Stated that West Lionshead would be appropriate location for employee housing and recommended granting additional density and height to accommodate employee housing • Proposed amendments to LHRMP remove recommendation for additional height and density, clarify that EV will meet the current employee housing requirements of the Zoning Code. 23 Employee Housi*ng On -Site Mitigation • Commercial Linkage • Inclusionary Zoning • 9 Dorm -Style Rental • 39,555 sf of for -sale Units (e.g.Timber employee housing Ridge or I st Chair) • Units meet a total • Units house a total of 69% of the total of 43.2 employees IZ requirement or 64% of the total CL requirement 24 Employee Housing Off -Site Mitigation • Commercial Linkage • Inclusionary Zoning Remaining off-site Remaining off-site requirement = requirement = 24.33 employees 17,576 sf (~8,515 sq 25 F IF 0 0 R V ' All plans and programming are proposed, remain subject to governmental approvals (which have not yet been obtained) and no representations are made about the accuracy of any information for the final project. Any reference to size or square footage is approximate. Views are not guaranteed. All information presented in this notebook is proposed and all elements are subject to change or elimination without notice. The project is working towards LEED -ND certification and no representations are made regarding the final certification which will not be determined until the project is complete. The Ever VaiITM project is being developed by EverVail, LLC an affiliate of Vail Resorts Development Company. Designated trademarks are the property of Vail Trademarks, Inc. © 2010Vail Resorts Development Company. 26