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2003-07-01 Support Documentation Town Council Work Session
AGENDA VAIL TOWN COUNCIL WORK SESSION 9:30 A.M. TUESDAY, JULY 1, 2003 1 • ITEM/TOPIC: Executive Session • Land Negotiations re: Sale of Old Town Shops to Eagle River Water and Sanitation District C.R.S 24-6-402(4)(a)(e) (10 min.) • Town Manager Contract Negotiations C.R.S. 24-6-402(4)(d)(e) (30 min.) • Timber Ridge C.R.S. 24-6-402 (4)(a)(b) (30 min.) • Housing Authority C.R.S. 24-6-402(4)(e)(b) (15 min.) • Middle Creek C.R.S. 24-6-402(4)(a)(b)(e) (20 min.) 2. Allison Ochs ITEM/TOPIC: Information Gathering and Site Visit to Ore House, 9 Vail Road re: DRB and PEC Appeals (25 min.) • .Van will leave at 11:15 a.m. 3. Bill Gibson ITEM/TOPIC: Discussion re: Text Amendments for Employee Housing Unit Regulations and Requirements (30 min.) 4. George Ruther ITEM/TOPIC: DRB/PEC Update (10 min.) 12:20 P.M. LUNCH BREAK (15 min.) 5. Sybill Navas ITEM/TOPIC: Joint Work Session with the Commission on Special Events (45 min.) 6. Rick Chastain ITEM/TOPIC: ProCycling Tour (PCT) Overview and Funding Request (30 min.) 7. Judy Camp ITEM/TOPIC: 2004 Budget Discussion re: Revenues (30 min.) 8. John Gulick ITEMlIi OPIC: Fire Impact Fee Presentation by Rocky Mountain Malcom Smith Group (45 min.) BACKGROUND RATIONALE: We have discussed exploring the concept of implementing an impact fee to help support the capital needs of the Vail Fire Department. The impact fee, if implemented, would be comparable to the impact fee we currently assess for recreation amenities. This impact fee approach is currently utilized by the towns of Gypsum, Eagle and many special districts in Eagle and Roaring Fork counties. 9. Matt Mire ITEM/TOPIC: Review the Draft Master Deed Restriction for the Nina Timm Occupancy of Units at Timber Ridge Village Apartments (15 min.) Page 1 ACTION REQUESTED OF COUNCIL: Review and provide direction to staff regarding the draft Master Deed Restriction. BACKGROUND RATIONALE: The Town of Vail is acquiring Timber Ridge Village to maintain affordable, rental housing on the property in perpetuity. The Master Deed Restriction will be recorded against the property in order to achieve this goal. RECOMMENDATION: Provide staff with the changes Council would like to the draft Master Deed Restriction for the Occupancy of Units at Timber Ridge Village Apartments. 10. Caroline Fisher ITEM/TOPIC: Denison Employee Culture Surrey Overview (1 hr.) ACTION REQUESTED OF COUNCIL: Actively participate in discussion. BACKGROUND RATIONALE: Since 1997, the Town ofi Vail has used an employee survey instrument to measure the town's "culture" as it relates to the overall work environment. Results of the 2003 employee survey will discussed, including how leadership by the Vail Town Council and Town Manager impacts the results. 11. Information Update (5 min.) 12. Matters from Mayor and Council (5 min.) 13. Adjournment (4:30 P.M.) NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT 2 P.M. TUESDAY, JULY 15, 2003 IN THE VAIL TOWN COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BEGIN AT 6 P.M. TUESDAY, JULY 15, 2003, IN VAIL TOWN COUNCIL CHAMBERS Sign language interpretation available upon request with 24-hour notification. Please call 479- 2332 voice or 479-2356 TDD for information. Page 2 DESIGN REVIEW BOARD AGENDA Wednesday, June 18, 2003 3:00 P.M. PUBLIC MEETING RESULTS PUBLIC WELCOME PROJECT ORIENTATION /LUNCH -Community Development Department D Sign Code Design Guidelines -Please bring your comments ~ GRFA Discussion MEMBERS PRESENT Bill Pierce Hans Woldrich Margaret Rogers David Viele MEMBERS ABSENT Clark Brittain SITE VISITS 1. Wren House - 5024 Main Gore Drive 2. Deighan residence - 1163 Cabin Circle 3. Vail das Schone - 2111 N. Frontage Rd. 4. Roost Lodge - 1783 N. Frontage Road 5. Vail Village Inn - 100 E. Meadow Drive 6. Bogart's Bar & Bistro - 143 E. Meadow Drive 7. Bridge Street Driver: Allison 12:00 pm 2:00 pm PUBLIC HEARING -TOWN COUNCIL CHAMBERS Vail Village Inn DRB03-0190 Final review of proposed repaint 100 E. Meadow Drive, Lot 0, Block 5D Applicant: Village Inn Plaza Phase V Condo Assoc. MOTION: Margaret Rogers SECOND: David Vieie TABLED UNTIL JULY 2, 2003 3:00 pm Matt/Bill VOTE: 3-0 (Hans recused) 2. Bogart's Bar & Bistro DRB03-0194 Final review of proposed signs 143 E. Meadow Drive/Lot P, Block 50, Vail Village 1St Filing Applicant: Dalu Enterprises, Inc. MOTION: Hans Woldrich SECOND: David Viele VOTE: 4-0 CONSENT APPROVED WITH 1 CONDITION: That a new awning must replace the existing awning. 1 Bill ~, 1i ~awN o,i vary i' 3. Roost Lodge DR603-0184 Allison Final review of proposed deck alteration 1783 N. Frontage Rd./Lots 9-12, Buffehr Creek Subdivision Applicant: Lester Narpecha MOTION: Hans Woldrich SECOND: David Viele VOTE: 4-0 CONSENT APPROVED WITH 1 CONDITION: That the entire railing must be completed as is already started. 4. The Wren House DRB03-0185 Allison Final review of proposed re-paint and replacement of windows The Wren House, 5024 Main Gore Drive/Block 3, Gore Creek Subdivision Applicant: The Wren House Condo Association MOTION: Hans Woldrich SECOND: David Viele VOTE: 4-0 APPROVED WITH 1 CONDITION: The applicant will replace the proposed dark green trim with a gray color similar to the gray on the Christiania which must be submitted to staff for review and approval, prior to submitting for a building permit. 5. Deighan residence DRB03-0193 Allison Conceptual review of proposed addition and exterior modifications 1163 Cabin Circle/Lot 1, Block 2, Vail Valley 1St Filing Applicant: Kevin Deighan, represented by Gwathmey Pratt Schultz Architects CONCEPTUAL - NO VOTE 6. Brandt residence DRB03-0181 Warren Final review of proposed single-family with EHU 1722 Buffehr Creek Road/Lot 5, E1eni Zneimer Subdivision Applicant: Scott & Claudine Brandt, represented by Cottle Graybeal Yaw Architects MOTION: Margaret Rogers SECOND: David Viele VOTE: 4-0 APPROVED WITH 6 CONDITIONS: The applicant shall make revisions to the plans which show combination retaining walls with a minimum four foot separation between walls as required by Town Code. 2. The applicant shall submit engineer stamped drawings for all retaining walls over four feet in height with the building permit application. 3. The applicant shall obtain proper approval to locate landscaping improvements in the designated utility easement at the time of building permit submittal. 4. The applicant shall file the appropriate paper work to establish a deed restricted EHU on the property when submitting for a building permit. 5. The applicant or a representative shall file a revised plat which depicts the revised platted building envelope which must be reviewed by staff and recorded prior to the issuance of a Temporary Certificate of Occupancy. 2 6. That the amended building envelope is approved for this design only and will revert back to the previous 60X90 platted envelope in the event this project is not constructed or there is a design change. 7. Vail Das Schone Building DRB03-0211 Warren Final review of a proposed re-roof 2111 North Frontage Road West/Vail Das Schone Filing 3 Applicant: Vail Das Schone Condo Association, represented by Scott Wirth of Wirth Management, Inc. MOTION: David Viele SECOND: Margaret Rogers VOTE: 4-0 APPROVED WITH 3 CONDITIONS: That the cold roof be redesigned to match the design found in the Zoning Code Interpretations Handbook with a ridge vent height of 12 inches or less as measured in the drawing. 2. The applicant shall use the "weathered wood" Cetainteed Presidential Shake AR. 3. The applicant shall submit a complete Design Review Board application for replacing the existing damaged awning no later than July 21, 2003 in order to be heard on the August 6, 2003 Design Review Board Meeting 8. Sonnenalp Hotel/Swiss Chalet DRB02-0279 Warren Final review of proposed major exterior alteration 20 Vail Road, 62 E. Meadow Drive, and 82 E. Meadow Drive/Lots K & L, Block 5E, Vail Village 1St Filing Applicant: Sonnenalp Properties, Inc., represented by Braun Associates, Inc. MOTION: Hans Woldrich SECOND: Margaret Rogers VOTE: 4-0 APPROVED WITH 6 CONDITIONS AND 1 SUGGESTION: The applicant shall submit a Design Review Board application for review and approval of a comprehensive sign program prior to issuance of a Temporary Certificate of Occupancy. 2. That there be no roof top mechanical equipment permitted and all roof penetrations be painted to match roofing material prior to approval of a Certificate of Occupancy. 3. The applicant shall address the relevant comments from Public Works in the document dated June 10, 2003 prior to submitting for a building permit. 4. The applicant shall submit civil drawings for review and approval by the Public Works Department which must address all engineering issues and concerns prior to submitting for a building permit. 5. The applicant will erect larger material mockups on site for review and final approval by the Design Review Board of the colors and materials to be used on the Swiss Chalet prior to beginning their application. 3 6. The applicant will submit plans to the Design Review Board for review and approval if in the design of mechanical systems vents are proposed on any elevation within view of the public. 7. It is suggested that the wall of the fourth floor room located in the tower on the corner of the building follow the outline of the octagonal tower. 9. Town of Vail DRB03-0180 Warren Final review of proposed flags Bridge St., Gore Creek Drive & Promenade, Meadow Drive & Lionshead Pedestrian area Applicant: Town of Vail, represented by Rick Scalpello MOTION: David Viele SECOND: Margaret Rogers VOTE: 4-0 TABLED UNTIL JULY 2, 2003 Staff Approvals Atwell residence DRB03-0192 Elisabeth Changes to approved plans 1390 Buffehr Creek Rd./Lot G-2, Residences at Briar Patch Condos Applicant: Webster Atwell II Priebe/Gisondi DRB03-0207 Deck extension and new stairs 2600 Kinnickinnick Road/Meadow Creek Subdivision Applicant: Erick Priebe Hill residence DRB03-0189 Replace entry walk, stairs and planter box 4889 Meadow Drive/Lot 14, Bighorn 5th Addition Applicant: Joan S. Hill Mill Creek Condo DRB03-0179 Re-roof 302 Hanson Ranch Road/Block 5A, Vail Village 5th Filing Applicant: Mill Creek Court Condo Association Rogers residence DRB03-0188 Re-roof 4802 Meadow Lane/Lot 6, Block 7, Bighorn 5th Addition Applicant: David S. Rogers Baker residence DRB03-0208 Deck addition 4126 Columbine Drive/Lot 16, Bighorn Subdivision Applicant: Judy & Bruce Baker Elisabeth Warren Elisabeth Elisabeth Warren Eckelberger residence DRB03-0204 Allison Porch extension Booth Falls Townhomes, 3094 Booth Falls Court/Lot 1, Block 2, Vail Village 12th Filing Applicant: Judie Eckelberger 4 De Iraola residence DRB030209 Warren Deck addition Vai! Point, 1881 Lionsridge Loop, #33/Lot 1, Block 3, Lions Ridge 3rd Filing Applicant: Ignacio & Sara De Iraola The applications and information about the proposals are available for public inspection during regular office hours in the project planner's office, located at the Town of Vail Community Development Department, 75 South Frontage Road. Please cal! 479-2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479- 2356,Telephone for the Hearing Impaired, for information. 5 r Tou~v of v~r, 75 South Frontage Road Yail, Colorado 81657 970-479-2100 Fax: 970-479-21 S 7 www ci. vail. co. us TO: Vail Town Council RE: Request for Funding in 2004 Commission on Special Events July 1, 2003 To Mayor Kurz and Members of the Vail Town Council: On behalf of the Commission on Special Events, I am requesting consideration of and response to the following three issues: - 1: CSE Requests $565,000 in 2004, Copv and Legal Suuuort, and a 2003-2004 TOV Parking Pass The CSE is requesting 2004 funding at the same level as in 2003, or $565.000, not to include the allocation for the New York Philharmonic. (It is assumed that decision will be covered under the "cultural designation" considered by the Council.). It is essential that the CSE continue to receive the benefit of legal advice from the Town Attorney with regard to funding and event contracts, as well as use of the copying and mailing facilities located in the Municipal Building. The CSE also requests that any of their funds that may be remaining at the end of 2003 be rolled over into 2004. I have attached a summary of the "2003 Funding Allocations to Date" for your information. Finally, I would like to request a 2003-2004 Town of Vail Parking Pass for my use. Over last year, the CSE has developed its funding allocation criteria with the following goals in mind: • Stimulating business for local merchants, restaurants and lodges • Alignment with the target demographic of the Vail Local Marketing District • Providing start-up funds for events that have the potential to become nationally recognized, anchor the same relative time slot annually, and which will require a steadily decreasing subsidy after the first year. • Incentivizing visitor returns: ensuring that the guests that are already here are enjoying themselves and that the atmosphere in town is full of fun and vitality. • Events where there is opportunity to leverage the CSE allocation with significant sponsorship $$$. • Encouraging events that bring a large number of participants annually, including: ^ Lacrosse Tournament ^ 3 X 3 Soccer Tournament ^ TEVA Mountain Games King of the Mountain Volleyball Tournament 6/24/2003 2004 CSE uest for Funding RECYCLEDPAPER Page 1 In support of this request, the CSE is happy to note several successes already in 2003, even as the summer event season is still in its eazly stages. The Session was an extraordinarily successful first yeaz event, and the Spring Back to Vail weekend provided some end of the season vitality that has not been seen in yeazs. The TEVA Mountain Games aze developing into an important, nationally recognized event, with our contribution leveraged by very significant sponsor and media contributions. Certainly the Village was hopping the first weekend in June! The Street Entertainment program has been revamped with the input of the merchants from last year, and we look forwazd to providing regulaz entertainment that will enhance the vitality of the community on the weekends in the Village, Lionshead and along Meadow Drive. Also, we have just signed a new 3-year contract at $25K /year to bring 3 X 3 Soccer back to Vail- a group that we almost lost to the new fields in Edwazds. New this year will be a Food and Wine Festival in Ford Pazk over the weekend of August 22- another event which has garnered significant sponsorship support and which is already rated in the Top 10 Food and WineFestivals in the country- 2 months before its debut! We aze excited about new Vail Film Festival, which will take place the 1St weekend in April, an event for which the CSE has already tentatively allocated $40K of 2004 funds, and which seeks to become an annual film event comparable to the Sundance Film Festival. The CSE has also been approached with a tentative concept fora 3-day Music Festival,. possibly over Memorial Day Weekend, and which intends to present groups the caliber of "Eagles." - 2: CSE Requests In-Kind Services to Support Special Events in 2004 The CSE requests that the Council recommend an appropriate level of in-kind services in 2004 to be administrated by the CSE as part of the event funding allocation process. Since the CSE has not received its own funding to date, and since the CSE hopes to recruit new events within the next few months, it is impossible for many event producers to know what "in-kind" funding to request at this point in the year. Additionally, it will make it possible for the CSE to align the Town's in-kind support with the events that they have prioritized for funding. In the interest of avoiding continually bringing "issues" to Council and in light of the current constraints on the budget, it would be helpful to have a cleaz policy statement relative to the level of "Event Friendliness" the Town is willing to provide without additional "allocations," specifically with regard to police and bus support, signage and parking policies. - 3: Support a Policy of Alignment of Construction Proiects and Street Improvements with Scheduled Events. The CSE requests that the Council support a goal of aligning the construction activities and street improvements within the Town of Vail in way that is sensitive to the events that aze being held at the same time. Although recognizing the benefits of the improvements being made, it makes no sense to allocate TOV $$$ to an event which is so impacted by construction activity that it is impossible to enjoy the activities. By way of example, in spite the concerned assistance of Tom Kassmel and Public Works, the road construction along Vail Valley Drive made it virtually impossible to access the King of the Mountain Volleyball Tournament on the weekend of June 13. At the very least, we need to commit to a serious signage program directing people around the construction, and avoid active work adjacent to or during an event. 6/24/2003 2004 CSE Request for Funding Page 2 In the last year, the CSE has contracted for my services through the VCBA, with duties to include being the single point of contact for special events in the town, and ensuring compliance with all of the permits required, as well as the administration of the CSE Board. 'The CSE will continue to participate in discussions concerning the development and improvement of event venues within the town. The CSE has also supported the Vail Valley Events Authority, which will be recruiting new events for the purpose of stimulating the local economy. Certainly the CSE is proud of its first yeaz record, and having established the groundwork this year, looks forward to continuing to foster and seek out events that will enhance our image as the "premier mountain resort community." Thank you for your continued support. ~ ~ ~,G:LL rr ., ~ _ S i1L 1~. Navas, Administrator ommission on Special Events 6/24/2003 2004 CSE Request for Funding Page 3 Town of Vail Commission on Special Events Summary of Funding Allocations to Date: June 17f 2~3 Total Funds Available: $565,000 Event: Producing Entitry: Dates: Amount Allocated: 3 an 3 Soccer Hast Communications &1QAugust $25,000 CSE Contribution to Soccer Bus Service Event $3,000 Neva Mountain Games Untraditional Marketing 6-8 June $75,000 :American Ski Classic Val Valley Foundation 19-23 March. $25,000 The Session Vail Valley Foundation 15-18 January $20,000 'Lacrosse Shoatout (additional $$ decreasing Colorado Lacrosse Promotions tnc 28 June- 6 July $14,000 aver 3 years} , . Food and Wine Festival Johann Drolshagen 22-24 August $50,000 Vail Arts Festival Eagle ValteyEvents, Carol 11-13 July $15 000 1-kl~let' EYentS , Nail Festival Italiano Eagle Valley Events 6-7 Sept $15,000 `Holid sin Vait ~ Vaii Valley Chamber and 27 Nov-31 Dec $20 000 Tourism Bureau , 4th of Jul y Vail Valley Chamber and 4-7 July $25 000 Tourism Bureau , Cctoberfest Vaik V~ttey Chamber and 12-14 September $65 000 Tourism Bureau 20-21 Septen>~r , King of the Mountain Volleyball Tournament Leon Fell 14-15 June $7,500; i Street Entertainment Resort Entertainment Weekends:21 June- $50 00(fi 5 September , i Employee Reunion and Highline Sports and .Revolution Spring Entertainment 10-13 April .$32,500 Sig Vllheek, Chili n'Brews Untraditional Markefir~ / 21-Jun $30,OOf3 w Eagle Valley Events tVail Film Festival Vail Film Festival 2-4 April, 2004 $15,000. i Subtotal Direct Event $$$: $487,000 Administrative Services: VCBA $25,000 Vail Valley Events Author' Event Recruitment $35,000 Re-format on-line WCTB Calendar $350 Subtotal Funds Allocated: $547,350 Funds Remainin ; $17,650 PLANNING AND ENVIRONMENTAL COMMISSION PUBLIC MEETING RESULTS Monday, June 23, 2003 PROJECT ORIENTATION / -Community Development Dept. PUBLIC WELCOME MEMBERS PRESENT John Schofield Erickson Shirley Chas Bernhardt Doug Cahill George Lamb Rollie Kjesbo Site Visits Vail Front Door Driver: George 12:00 pm 1:00 pm ~~ NOTE: If the PEC hearing extends until 6:00 p.m., the board may break for dinner from 6:00 - 6:30 Public Hearing -Town Council Chambers 2:00 pm A request fora recommendation to the Vail Town Council of proposed text amendments to Title 12, Zoning Regulations, Vail Town Code, to amend the Gross Residential Floor Area (GRFA) regulations in the Hillside Residential (HR), Single-Family Residential (SFR), Two- Family Residential (R), Two-Family Primary/Secondary Residential (PS), Residential Cluster (RC), Low Density Multiple-Family (LDMF), Medium Density Multiple-Family (MDMF), High Density Multiple-Family (HDMF), and Housing (H) districts, and setting forth details in regard thereto. Applicant: Vicki Pearson, et.al. Planner: Bill Gibson MOTION: Doug Cahill .SECOND: George Lamb VOTE: 6-0 TABLED UNTIL JULY 14, 2003 2. A request fora final review of the following applications: a recommendation to the Vail Town Council of a text amendment to Section 12-7B-13, Density Control, Zoning Regulations; a request for a recommendation to the Vail Town Council of a proposed rezoning of Lots P3 & J, Block 5A, Vail Village 5th Filing from Public Accommodation zone district (PA) to Parking zone district (P); a request for a recommendation to the Vail Town Council for the proposed zoning of an unplatted parcel of land commonly referred to as the "trade parcel" and Lots 1 & 2, Mill Creek Subdivision to Ski Base Recreation II zone district; a request for a minor subdivision, pursuant to Title 13, Subdivision Regulations, Vail Town Code, to allow for the relocation of the common property line between Lots P3 & J, Block 5A, Vail Village 5th Filing; a request for a recommendation to the Vail Town Code of a proposed major subdivision, pursuant to Section ~, 1 TOWN OF PAIL ~ MEMBERS ABSENT Gary Hartman 13-3, Major Subdivision, Vail Town Code, to allow for the platting of the "trade parcel"; a request for a conditional use permit, pursuant to Chapter 16, Title 12, of the Vail Town Code, to allow fora "private off-street vehicle parking facility and public park" to be constructed and operated on Lots P3& J, Block 5A, Vail Village 5th Filing; a request for an exterior alteration or modification, pursuant to Section 12-7B-7, Exterior Alterations or Modifications, Vail Town Code, to allow for an addition to the Lodge at Vail; a request for a variance from Section 12-21- 10, Development Restricted, Vail Town Code, pursuant to Chapter 17, Variances, Zoning Regulations, to allow for the construction ofmultiple-family dwelling units on slopes in excess of 40%; and a request for the establishment of an approved development plan to facilitate the construction of Vail's Front Door, and setting forth details in regard thereto. (Amore complete metes and bounds legal description is available at the Town of Vail Community Development Department) Applicant: Vail Resorts, represented by Jay Peterson Planner: George Ruther MOTION: Chas Bernhardt SECOND: Rollie Kjesbo VOTE: 6-0 TABLED UNTIL JULY 14, 2003 3. A request for a conditional use permit, to allow for an outdoor dining deck, in accordance with Section 12-7B-4B, Conditional Uses, Vail Town Code, located at the Vista Bahn Building, 333 Hanson Ranch Road/Lot C, Block 2, Vail Village 1St Filing. Applicant: Remonov & Company, Inc., represented by Knight Planning Services, Inc. Planner: Bill Gibson TABLED UNTIL JULY 14, 2003 4. Approval of June 9, 2003 minutes 5. Information Update -Town of Vail Master Plans D Examination of Town of Vail adopted documents in order to develop a prioritized list for beginning the process of revising elements of the Vail Comprehensive Plan -Warren Campbell There was no public Comment. John Schofield would like to set up an annual review of the adopted documents. The applications and information about the proposals are available for public inspection during regular office hours in the project planner's office located at the Town of Vail Community Development Department, 75 South Frontage Road. Please call 479-2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479- 2356, Telephone for the Hearing Impaired, for information. Community Development Department 2 TOWN OF VAIL 75 South Frontage Road Vail, Colorado 81657 970-479-2100 Fax: 970-479-2157 www. ci. vail. co. us TO: Vail Town Council RE: Request for Funding in 2004 Commission on Special Events July 1, 2003 To Mayor Kurz and Members of the Vail Town Council: On behalf of the Commission on Special Events, I am requesting consideration of and response to the following three issues: - 1: CSE Requests $565,000 in 2004, Copy and Legal Support, and a 2003-2004 TOV Parking Pass The CSE is requesting 2004 funding at the same level as in 2003, or $565.000, not to include the allocation for the New York Philharmonic. (It is assumed that decision will be covered under the "cultural designation" considered by the Council.). It is essential that the CSE continue to receive the benefit of legal advice from the Town Attorney with regard to funding and event contracts, as well as use of the copying and mailing facilities located in the Municipal Building. The CSE also requests that any of their funds that may be remaining at the end of 2003 be rolled over into 2004. I have attached a summary of the "2003 Funding Allocations to Date" for your information. Finally, I would like to request a 2003-2004 Town of Vail Parking Pass for my use. Over last year, the CSE has developed its funding allocation criteria with the following goals in mind: • Stimulating business for local merchants, restaurants and lodges • Alignment with the target demographic of the Vail Local Marketing District • Providing start-up funds for events that have the potential to become nationally recognized, anchor the same relative time slot annually, and which will require a steadily decreasing subsidy after the first year. • Incentivizing visitor returns: ensuring that the guests that are already here are enjoying themselves and that the atmosphere in town is full of fun and vitality. • Events where there is opportunity to leverage the CSE allocation with significant sponsorship $$$. • Encouraging events that bring a large number of participants annually, including: Lacrosse Tournament 3 X 3 Soccer Tournament ^ TEVA Mountain Games King of the Mountain Volleyball Tournament 6/24/2003 2004 CSE R~uest for Funding Page 1 ~~ RECYCLEDPAPER In support of this request, the CSE is happy to note several successes already in 2003, even as the summer event season is still in its early stages. The Session was an extraordinarily successful first year event, and the Spring Back to Vail weekend provided some end of the season vitality that has not been seen in years. The TEVA Mountain Games are developing into an important, nationally recognized event, with our contribution leveraged by very significant sponsor and media contributions. Certainly the Village was hopping the first weekend in June! The Street Entertainment program has been revamped with the input of the merchants from last year, and we look forward to providing regular entertainment that will enhance the vitality of the community on the weekends in the Village, Lionshead and along Meadow Drive. Also, we have just signed a new 3-year contract at $2SK /year to bring 3 X 3 Soccer back to Vail- a group that we almost lost to the new fields in Edwards. New this year will be a Food and Wine Festival in Ford Park over the weekend of August 22- another event which has garnered significant sponsorship support and which is already rated in the Top 10 Food and Wine Festivals in the country- 2 months before its debut! We are excited about new Vail Film Festival, which will take place the lst weekend in April, an event for which the CSE has already tentatively allocated $40K of 2004 funds, and which seeks to become an annual film event comparable to the Sundance Film Festival. The CSE has also been approached with a tentative concept fora 3-day Music Festival, possibly over Memorial Day Weekend, and which intends to present groups the caliber of "Eagles." - 2: CSE Requests In-Kind Services to Support Special Events in 2004 The CSE requests that the Council recommend an appropriate level of in-kind services in 2004 to be administrated by the CSE as part of the event funding allocation process. Since the CSE has not received its own funding to date, and since the CSE hopes to recruit new events within the next few months, it is impossible for many event producers to know what "in-kind" funding to request at this point in the year. Additionally, it will make it possible for the CSE to align the Town's in-kind support with the events that they have prioritized for funding. In the interest of avoiding continually bringing "issues" to Council and in light of the current constraints on the budget, it would be helpful to have a clear policy statement relative to the level of "Event Friendliness" the Town is willing to provide without additional "allocations," specificaiiy with regard to police and bus support, signage and parking policies. - 3: Support a Policy of Alisnment of Construction Proiects and Street Improvements with Scheduled Events. The CSE requests that the Council support a goal of aligning the construction activities and street improvements within the Town of Vail in way that is sensitive to the events that are being held at the same time. Although recognizing the benefits of the improvements being made, it makes no sense to allocate TOV $$$ to an event which is so impacted by construction activity that it is impossible to enjoy the activities. By way of example, in spite the concerned assistance of Tom Kassmel and Public Works, the road construction along Vail Valley Drive made it virtually impossible to access the King of the Mountain Volleyball Tournament on the weekend of June 13. At the very least, we need to commit to a serious signage program directing people around the construction, and avoid active work adjacent to or during an event. 6/24/2003 2004 CSE Request for Funding Page 2 In the last year, the CSE has contracted for my services through the VCBA, with duties to include being the single point of contact for special events in the town, and ensuring compliance with all of the permits required, as well as the administration of the CSE Board. The CSE will continue to participate in discussions concerning the development and improvement of event venues within the town. The CSE has also supported the Vail Valley Events Authority, which will be recruiting new events for the purpose of stimulating the local economy. Certainly the CSE is proud of its first year record, and having established the groundwork this year, looks forward to continuing to foster and seek out events that will enhance our image as the "premier mountain resort community." Thank you for your continued support. r - ~ ~ ;; c'''`~~ _ y/ S,ybill-R. Navas, Administrator Commission on Special Events 6/24/2003 2004 CSE Request for Funding Page 3 Town of Va i I Commission on Special Events Summary of Funding A/locations to Date: June 17, 2003 Total Funds Available: $565,000 Event: Producing Entitiy: Dates: Amount Allocated: 3 on 3 Soccer Host Communications 8-10August $25,000 CSE Contribution to Soccer Event Bus Service $3,000 Teva Mountain Games Untraditional Marketing 6-8 June $75,000 American Ski Classic Vail Valley Foundation 19-23 March $25,000 The Session Vail Valley Foundation 15-18 January $20,000 Lacrosse Shootout (additional $$ decreasing Colorado Lacrosse 28 June- 6 July $14,000 over 3 years} Promotions, Inc. Food and Wine Festival Johann Drolshagen 22-24 August $50,000 Vail Arts Festival Eagle Valley Events, Carol 11-13 July $15,000 Hiller Events Vail Festival Italiano Eagle Valley Events 6-7 Sept $15,000 Holidays in Vail Vail Valley Chamber and 27 Nov-31 Dec 000 $20 Tourism Bureau , 4th of July Vail Valley Chamber and 4-7 July $25,000. Tourism Bureau Octoberfest Vail Valley Chamber and 12-14 September $65 000 Tourism Bureau 20-21 September King of the Mountain Volleyball Tournament Leon Fell 14-15 June $7,500 Street Entertainment Resort Entertainment Weekends:21 June- $50,000 5 September Employee Reunion and Highline Sports and 10-13 April $32 500 Revolution Spring Entertainment , Big Wheel, Chili n'Brews Untraditional Marketing 21-Jun 000 $30 w/Eagle Va-ley Events , Vail Film Festival Vail Film Festival 2-4 April, 2004 $15,000 Subtotal Direct Event $$$: $487,000 Administrative Services: VCBA $25,000 .Vail Valley Events Authority Event Recruitment $35,000 Re-format on-line WCTB Calendar $350. Subtotal Funds Allocated: $547,350: Funds Remaining: $17,s5o a ` ;'esrtor . Q t~+i3 3'~+ a ~ Y "~. ' ti VAS ~ ..LEY C1Iaerc~Tfluris~rn Burc~li ~~O tt 1' .3 tf ft't'SS L O p It Ft'j F4 [t Event Summary Name: Rocky Mountain Classic at vaii Event Budget: $1.6 million Town of nail Funding Request: $100,000 ©ates: Annually, each Gabor gay Beginning in 2004 vocation: HQ'd in vai? village, other events throughout valley Event uescription- The PCT The Professional Cycling Tour is America's largest pro cycling series, hosting over 350 of the world's best riders. Tn existence since 1996, the PCT already exists in three major Vail markets; Philadelphia, New York and San. Francisco and regularly draws crowds of 300,000. The PCT Rocky Mountain Classic at Vaii is considered a top-level worldwide cycling event and will attract a very strong field. Vail vaii will become the PCT'S fourth venue as well as official Resort partner and will receive extensive marketing programs and benefits 2004 uates Friday, September 3 Grand Fondo citizens' ride from Denver to vail village (2,000 riders) Saturday, Circuit Road Race beginning in vail September 4 village and ending in Beaver Creek Sunday, Cri Cerium i n vai 1 vi 11 age September S TOV Funding Request 2004 Rocky Mountain Classic at vaii Page 1 Updated 6/26/03 stratecay - rncrease tourism on a year-round basis - ©evelop annual event with global scale - Fan package sales program - attract industry corporations and. groups Return on vai 1 wi l l receive... Investment The (=vent Multi-day event slated to attract 20,000 visitors Marketing National Television -One hour show campaign Outdoor t_ife Network National and Regional Print - fu11 complement of Rodale ppublications in addition to sports illustrated, wall street journal, SmartMoney, ESPN The Magazine and all major cycling publications other media = including website, e-marketing and direct consumer response Tourism vai 1 wi 11 also receive aevelopment - exclusive designation as official Resort - Television commercials, vignettes and exposure in a71 other PCT broadcasts - On-site marketing at PCT events in Philadelphia, New York and San Francisco - 2 million person database Next Steps Begin activation immediately - National public relations campaign - City-specific marketing - t_aunch event in san Francisco Prospective Event 2003 Professional Cycling Tour Updated 6126/03 Page 2 TOWN OF VAIL I 7S South Frontage Road Commission on Special Events Yail, Colorado 81657 970-479-2100 Fax: 970-479-21 S7 www ci. vail. co. us June 24, 2003 TO: Vail Town Council RE: 2004 Vail Valley International Cycling Festival Dear Mayor Kurz and Council Members: The CSE strongly recommends that you support the 2004 Vail Valley International Cycling Festival. Road biking is riding an upswing and the Vail Valley is well positioned to take advantage of identifying itself with this exciting sport. This will bean "icon" event that leas the potential to become a major annual event in our town at a time of year where we have significant room to increase revenues from the restaurant, lodging and retail businesses. It is an excellent opportunity to capitalize on national and international media and branding exposure and to leverage our contribution with other event sponsors and media partners. Additionally, it will bring a large number of participants into the valley to enjoy the event on multiple levels- from the professional athlete, to the amateur rider to the casual observer; and is targeted to closely match the ideal demographic identified by the Vail Local Marketing District Advisory Council. Should you decide to fund the International Cycling Festival, the CSE believes that the presence of Lance Armstrong would be a powerful component in guaranteeing the event's success, and we strongly suggest that he be contracted to participate. Sincerely s, /~ ~ ybRl~R. Nava , ~~~n behalf of the CSE l7 0-~~ he ~, ~ r d ~ ~ c-I~s ~~~ RECYCLEDPAPER MEMORANDUM TO: Town Council FROM: Judy Camp DATE: June 26, 2003 RE: Revenue Discussion I am attaching the following information for your review and discussion in Tuesday's work session. - 2004 Budget Timetable - Major Revenue Analysis - Lift Tax Memo from Vail Resorts - Sales Tax History Chart Budget Timetable The timetable has been revised to reflect your direction to bring the budget to you in sections. The first section, Major Revenue, is scheduled for this Tuesday. Major Revenue Analysis The attached schedule shows a five year history of major revenues and a recommendation for the 2004 revenue budget. Sales Tax comprises approximately 45% of the town's total revenue. As shown on the attached chart, the town's sales tax revenue has been an inconsistent source of revenue which is impacted significantly by external events. In accordance with the Council's comments, 2004 sales tax revenue is projected at a modest increase of 1% over 2003 budget. Proposed property tax and road and bridge revenue are based on the most recent information from the County Assessor's office. The decrease in those revenues in 2004 is attributed to a statutory reduction of the ratio applied to market value of residential property to reach assessed value. Parking revenue was favorably impacted during the 2002/2003 ski season by the "Arrive after Five" and one hour free. Although the 2003 budget for parking revenue is $2.3 million, we are ahead of budget by over half a million dollars for the first five months of this year. If parking revenue in November and December is at the budgeted level, the full year revenue will be $2.8 million in 2003. The proposed parking revenue of $2,550,000 for 2004 is a return to the 2002 level, consistent with the philosophy to budget conservatively and given that the parking plan for the next ski season has not yet been determined. Real Estate Transfer Tax revenue has historically been budgeted at $2.5 million annually. Since that number has been exceeded in each of the last five years, the 2004 budget proposal of $2,750,000 is an increase over the 2003 budget; however, it is still conservative in that it does not exceed the lowest RETT revenue generated in the past five years. Lift Tax At your request, Bill Jensen, Chief Operating Officer for Vail Resorts, .has provided the attached explanation of how lift tax is calculated and will be available on Tuesday to answer any questions. Version 2 Changes Highlighted Town of Vall Proposed 2004 Budget Timetable Contributions Council criteria discussion 05/20/03 Complete Deadline for return of packets 07/31/03 Commission on Special Events presentation to Council 07/01/03 Council evaluation of requests and direction for 2004 budget 08/19/03 Budget Guidelines Council decision on VCBA & VVCTB funding 06/03/03 Complete Council discussion of budget philosophy and timetable 06/17/03 '' Complete Guidelines distributed to department heads 06/23/03 2003/2004 parking plan discussion 07/15/03 Streetscape .Committee recommendation .07/15/03 Presentation of 2002 audit report to Council 07/15/03 VRI presentation to Council on lift tax revenue' TBD Budget Preparation Capital budget request for county funds submitted 06/13/03 Complete Staff prepares departmental budgets 06/23/03 to 07/18/03 Council discussion of major revenue items 07/01!03 Council review of first draft of 5-year capital projection 07/15/03 Council review of first draft of 5-year RETT projection 07/15/03 Council review of second draft of 5-year capitat projection 08/05/03° Council review of second draft of 5-yearRE=TT projection 08/05/03 Town Manager reviews departmental budgets 07/27/03 to 07/29/03 Town Manager's budget complete 08/13/03 Council review of first draft proposal 08/19/03 Council review of second draft proposal and 5-year capital plan 09/02/03 Budget Documentation and Reporting First reading of 2004 budget ordinance 09/16/03 Second reading of 2004 budget ordinance 10/07/03 First reading of mil levy certification ordinance 11/18/03 Second reading of mil levy certification ordinance 12/02/03 Mil levy certification deadline to Eagle County 12/15/03 Budget book submission 12/31/03 Calendar Printed 6/26/03 Sales Tax County Sales Tax Property Tax Revenue LiR Tax Revenue Road 8 Bridge Revenue Highway Users Tax Parking Revenue Franchise Fees Construction Fees RETT Tax MAJOR REVENUE ANALYSIS 1999 2000 2001 2002 Actual Actual Actual Actual 15,111, 367 15,368, 598 15, 734, 387 15,264, 581 1.8% 1.7% 2.4% -3.0% 459,664 517,260 511,870 491,952 -4.9% 12.5% -1.0% -3.9% 2,002,660 2,082,770 2,420,327 2,630,105 3.8% 4.0% 16.2% 8.7% 1,710,061 1,961,723 2,145,587 2,344,921 -16.3% 14.7% 9.4% 9.3% 423,671 466,024 477,279 492,166 -1.3% 10.0% 2.4% 3.1 221,471 225,509 219,674 217,835 3.6% 1.8% -2.6% -0.8% 1,513,610 1,980,421 2,313,445 2,548,806 -6.8% 30.8% 16.8% 10.2% 564,419 576,904 628,427 580,372 2.9% 2.2% 8.9% -7.6% 516,999 606,671 789,170 854,377 (0.3) 17.3% 30.1 % 8.3% 2,771,634 3,518,178 3,029,526 2,943,338 26.9% -13.9% -2.8% 2003 2004 Budget Proposed Comments 14,580,000 14,725,800 Per Council Discussion -4.5% 1.0% 475,000 479,750 Same increase as sales tax -3.4% 1.0% 2,661,011 2,543,101 Reduction in assesed rate 1.2% -4.4% applied to market values 2,188,920 2,210,809 Per Council Discussion -6.7% 1.0% 485,255 464,000 Reduction in assesed rate -1.4% -4.4% applied to market values 209,861 205,000 Trend is down; based on miles -3.7% -2.3% of highway 2,300,000 2,550,000 Same as 2002 Actual -9.8% 10.9% 602,500 575,000 Trending downward; based on 3.8% -4.6% utility company revenues 786,500 806,163 Inflationary increase -7.9% 2.5% 2,500,000 .2,750,000 Lowest of 5-year actual -15.1% 10.0% Version 1 Major Revenue Analysis 6/26/03 North America's #1 Resort June 26, 2003 -Vail Town Council Town of Vail 75 South Frontage Road Vail, CO 81657 Re: Calculation of Vail Mountain Lift Revenue for Town of Vai14% Assessment of Vail Resorts, Tiic. for In Town Bus Transportation. Dear Town Council Members, This letter is in response to your request to clarify how the 4% lift ticket assessment is calculated with respect to the variety of Vail Resorts, Inc. lift access products currently available in the marketplace including the Colorado Pass. .Vail Resorts, Inc. pays the Town of Vail a 4% assessment on all lift revenue generated on Vail Mountain including window ticket sales, Internet sales, season pass sales including the Colorado and Merchant Passes, and winter and summer sight seeing rides. Revenue is recognized at the base of the mountain through our ticket scanning system. In effect, our scanning staff with their scanning equipment is our cash register. Every individualigttest accessing Vail Mountain is scanned including employees, outside vendors, contractors and US Forest Service personnel. Simply put no valid ticket, no ride. As each scan takes place, revenue recognition occurs based on the bar code on the product presented whether it is a paper lift ticket, season pass, employee/dependent pass or a Peaks Card ~~,~ith a direct-to-lift component attached to the bar code (credit card attached). The re~'enue recognized by the scanning equipment is the revenue that is associated with that particular lift access product. As an example, a single day lift ticket sold at the ticket windo4v would be revenue recognized at the price the ticket was purchased far at the window. A multi-day lift ticket would be revenue recognized at the fractional component of the product purchased (i.e. three, four or five day ticket purchase price divided by the number of days with that portion of the revenue recognized on each day of use). In the case of sea~an passes, and in particular with respect to your inquiry regarding the Colorado Pass, season pass revenue recognition occurs when the pass is presented on Post Office Box 7 - Vaif, Colorado 81658 970-845-2500 www.vail.com ~t VAI L RESORTS" each day of use. Because the majority (if not all) of Vail Resorts season passes have multi-resort capability, the revenue associated with that pass usage is credited to the resort where the pass is scanned. Vail Resorts estimates, based on season pass usage history at the start of every ski season, the number of days of use each type of pass product will incur. As an example, Vail Mountain and Beaver Creek Resort historically estimate that a Merchant Pass will be used 25 times during the season and the purchase price of the Merchant Pass is divided by 25 creating a daily revenue amount to be recognized by the scanning process. As the season progresses, pass usage is monitored and adjustments are calculated based on actual usage. Daily revenue amounts are adjusted accordingly. This past season Merchant Pass holders skied in excess of 26 days and the resort's daily revenue from Merchant Pass usage had to be adjusted down to account for the increased usage. Because the Merchant Pass is good at both Vail and Beaver Creek (with the exception of the Breckenridge/Keystone upgrade option) the resort where the pass is scanned receives the revenue associated for that day. At the end of the season, final calculations are made based on total season pass usage by product category. Season pass revenue is precisely calculated to each resort where pass usage occurred. These final adjustments are made in the month of April after the ski season ends. Generally this "breakage calculation" represents less than 1% of Vail Mountain's total lift revenue but does increase April lift revenue for the Town of Vail assessment calculation. In the case of the Colorado Pass, which is valid at Vail Resort's four Colorado resorts, usage is estimated at 10 times at the start of each season (adult or children's purchase price divided by 10) and that revenue is credited to the resort where the Colorado Pass is scanned on each day it is presented. At the end of the season, actual usage is determined and revenue adjustments are recalculated with actual revenue adjusted according to individual resort usage. Historically Colorado Pass usage has averaged 8.5 to 9.3 days of use (9.1 days this 2002/2003 ski season) with just 2.1 days used this season at Vail. Based on the actual usage of 9.1 days, the Vail Resorts blended rate (adult and children pass usage) earned $30.05 each day the Colorado Pass was presented. In the case of Vail Mountain, Vail earned $30.54 each day the Colorado Pass was presented (due to a higher ratio of adult versus children's passes presented at Vail than the Vail Resorts average). Total Colorado Pass revenue earned by Vail Mountain during the 2002/2003 ski season was $7,748,000, which in turn Vail Resorts paid the applicable 4% Town of Vail transportation assessment on that as well as Vail Mountain's other ticket revenue. Vail Resorts has one of the most sophisticated lift access (ticketing and season pass) systems in the world. The philosophy of amulti-resort lift ticket or season pass has been beneficial from a marketing standpoint for Vail Resorts in a very competitive ski resort environment. As the Chief Operating Officer of Vail I am responsible for Vail Mountain's profitability (the combination of revenue and operating expenses). I personally monitor Vail Mountain's lift ticket revenue on a daily basis and I want to assure the Town of Vail and the Town Council that we share a common interest in maximizing Vail Mountain's lift ticket and season pass revenue. If you have any further questions regarding Vail Mountain's lift ticket revenue I will attend the work session on Tuesday, July 1 and be available to answer your questions. Best regards, ~ -~---- Bill Jensen Senior Vice President Chief Operating Officer Vail Resorts Vail. June 26, 2003 Vail Town Council Town of Vail 75 South Frontage Road Vail, CO 81657 North America's #7 Resort Re: Calculation of Vail Mountain Lift Revenue for Town of Vai14% Assessment of Vail Resorts, Inc. for In Town Bus Transportation. Dear Town Council Members, This letter is in response to your request to clarify how the 4% lift ticket assessment is calculated with respect to the variety of Vail Resorts, Inc. lift access products currently available in the marketplace including the Colorado Pass. Vail Resorts, Inc. pays the Town of Vail a 4% assessment on all lift revenue generated on Vail Mountain including window ticket sales, Internet sales, season pass sales including the Colorado and Merchant Passes, and winter and summer sight seeing rides. Revenue is recognized at the base of the mountain through our ticket scanning system. In effect, our scanning staff with their scanning equipment is our cash register. Every individual/guest accessing Vail Mountain is scanned including employees, outside vendors, contractors and US Forest Service personnel. Simply put no valid ticket, no ride. As each scan takes place, revenue recognition occurs based on the bar code on the product presented whether it is a paper lift ticket, season pass, employee/dependent pass or a Peaks Card with adirect-to-lift component attached to the bar code (credit card attached). The revenue recognized by the scanning equipment is the revenue that is associated with that particular lift access product. As an example, a single day lift ticket sold at the ticket window would be revenue recognized at the price the ticket was purchased for at the window. A multi-day lift ticket would be revenue recognized at the fractional component of the product purchased (i.e. three, four or five day ticket purchase price divided by the number of days with that portion of the revenue recognized on each day of use). In the case of season passes, and in particular with respect to your inquiry regarding the Colorado Pass, season pass revenue recognition occurs when the pass is presented on Post Office Box 7 Vail, Colorado 81658 970-845-2500 www.vail.com VA I L RESORTS" ~~ each day of use. Because the majority (if not all) of Vail Resorts season passes have multi-resort capability, the revenue associated with that pass usage is credited. to the resort where the pass is scanned. Vail Resorts estimates, based on season pass usage history at the start of every ski season, the number of days of use each type of pass product will incur. As an example, Vail Mountain and Beaver Creek Resort historically estimate that a Merchant Pass will be used 25 times during the season and the purchase price of the Merchant Pass is divided by 25 creating a daily revenue amount to be recognized by the scanning process. As the season progresses, pass usage is monitored and adjustments are calculated based on actual usage. Daily revenue amounts are adjusted accordingly. This past season Merchant Pass holders skied in excess of 26 days and the resort's daily revenue from Merchant Pass usage had to be adjusted down to account for the increased usage. Because the Merchant Pass is good at both Vail and Beaver Creek (with the exception of the Breckenridge/Keystone upgrade option) the resort where the pass is scanned receives the revenue associated for that day. At the end of the season, final calculations are made based on total season pass usage by product category. Season pass revenue is precisely calculated to each resort where pass usage occurred. These final adjustments are made in the month of April after the ski season ends. Generally this "breakage calculation" represents less than 1% of Vail Mountain's total lift revenue but does increase April lift revenue for the Town of Vail assessment calculation. In the case of the Colorado Pass, which is valid at Vail Resort's four Colorado resorts, usage is estimated at 10 times at the start of each season (adult or children's purchase price divided by 10) and that revenue is credited to the resort where the Colorado Pass is scanned on each day it is presented. At the end of the season, actual usage is determined and revenue adjustments are recalculated with actual revenue adjusted according to individual resort usage. Historically Colorado Pass usage has averaged 8.5 to 9.3 days of use (9.1 days this 2002/2003 ski season) with just 2.1 days used this season at Vail. Based on the actual usage of 9.1 days, the Vail Resorts blended rate (adult and children pass usage) earned $30.05 each day the Colorado Pass was presented. In the case of Vail Mountain, Vail earned $30.54 each day the Colorado Pass was presented (due to a higher ratio of adult versus children's passes presented at Vail than the Vail Resorts average). Total Colorado Pass revenue earned by Vail Mountain during the 2002/2003 ski season was $7,748,000, which in turn Vail Resorts paid the applicable 4% Town of Vail transportation assessment on that as well as Vail Mountain's other ticket revenue. Vail Resorts has one of the most sophisticated lift access (ticketing and season pass) systems in the world. The philosophy of a multi-resort lift ticket or season pass has been beneficial from a marketing standpoint for Vail Resorts in a very competitive ski resort environment. As the Chief Operating Officer of Vail I am responsible for Vail Mountain's profitability (the combination of revenue and operating expenses). I personally monitor Vail Mountain's lift ticket revenue on a daily basis and I want to assure the Town of Vail and the Town Council that we share a common interest in maximizing Vail Mountain's lift ticket and season pass revenue. If you have any further questions regarding Vail Mountain's lift ticket revenue I will attend the work session on Tuesday, July 1 and be available to answer your questions. Best regards, ~, s--_ Bill Jensen Senior Vice President Chief Operating Officer Vail Resorts (,~ ~~1~D3 1.~~,a~*S Impact Fees and Senate Bill 15 One Definition of a Impact Fee Planning literature generally defines an impact fee as a one-time charge assessed against new development that attempts to recover the cost incurred by a local government in providing the public facilities required to serve that new development. Senate Bill 1 S • Provides that a local government "may impose an impact fee or other similar development charge" to fund expenditures by such local government on capital facilities needed to serve that new development. • Local government includes" a county, home rule or statutory city, town, territorial charter city, city or county." • The impact fee must be "directly related" to the cumulative impacts of the proposed development in general, or all proposed development in a community, not to a particular individual development proposal. • Local government must quantify the reasonable impact of proposed development on existing capital facilities. The impact fee may not be greater than .necessary to defray such impacts directly related to proposed development. • Impact fees should be calculated based on all projected development for a specified time frame of at least 5 years. Paying For Growth, Impact fees under Senate Bill 15, Colorado Municipal League, 2002 ' w Capital Facilities and Equipment • Under SB 1 S "Capital Facility" means any improvement or facility that: 1. Is directly related to any service that a local government is authorized to provide. 2. Has an estimated life of S years or longer. 3. Is required by the charter or general policy of a local government. • SB 1 S does not directly mention "pieces of equipment" but does use the phrase" useful life of S years or longer." Therefore if a municipality wants to impose an impact fee which includes items that could be considered "equipment", it would be prudent to ensure the legislative record contains all the data as to the estimated useful life of the item. • SB 1 S prohibits the imposition of an impact fee to remedy any deficiency in existing capital facilities. • What about completed applications submitted before the adoption of an impact fee? 1. No impact fee or other similar development charge shall be imposed on any development permit for which the applicant submitted a "complete application" before the adoption of an impact fee. Paying For Growth, Impact fees under Senate Bill 15, Colorado Municipal League, 2002 2. Interpretation of the provision will depend on the point at which an impact fee becomes payable and what constitutes a "complete application" under each community regulations. 3. Complete application is not defined in SB 15. a.) It does seem reasonable to presume that the term "application" refers to the application for the development permit that triggers the payment of an impact fee. (Example: subdivision may have completed its application but did not file complete building permit application.) b.) The municipality should define "complete application. • A local government may waive an impact fee or other similar development charge on low ormoderate-income housing or affordable employee housing as defined by local government. • A local government may waive impact fees if in-kind value is substituted such as land for a firehouse. Limitations on Impact Fees • Impact Fees: 1. May only be used to finance capital infrastructure. They may not be used to cover on-going operations and maintenance costs. Z. May not be deposited in the general fund but in a separate account. Paying For Growth, Impact fees under Senate Bill I5, Colorado Municipal League, 2002 3. Should be spent in a relatively short timeframe usually 5 years. 4. May not be used to address existing service deficiencies. 5. May .not be imposed until background material is produced and assimilated prior to formulating a fee structure. 6. May create additional staff work. Demonstrating Need Adding capital facilities should be linked to growth and then justified. It should be demonstrated that if historical growth conditions continue into the future, local government must invest in more capital facilities or experience deteriorating service levels. It is also a good opportunity to reveal fiscal trends that lend credibility to the need for an impact fee so new development pays its share. Paying For Growth, Impact fees under Senate Bill 15, Colorado Municipal League, 2002 4 DRAFT06/26/2003 MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS DRAFT06/26/2003 TABLE OF CONTENTS MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS ARTICLE 1 DEFINITIONS ............................................................ ARTICLE 2 AGREEMENT BINDS THE PROJECT .............................. ARTICLE 3 QUALIFIED RESIDENTS ............................................. ARTICLE 4 RESTRICTIONS ......................................................... 4.1 Occupancy 4.2 No Discrimination 4.3 Vacancy ARTICLE 5 RESIDENCE .............................................................. 5.1 Units Only For Residential Purposes 5.2 Eviction Upon Violation Of This Agreement ARTICLE 6 UNIT LEASE APPROVAL AND TERMINATION ................ 6.1 Unit Lease Approval 6.2 Owner's Right to Terminate Lease ARTICLE 7 INSPECTION AND HEARING FOR BREACH ..................... 7.1 Inspection Upon Reasonable Cause 7.2 Notice of Violation and Hearing Request 7.3 Hearings ARTICLE 8 REMEDIES ARTICLE 10 TERMS OF RESTRICTION ARTICLE 11 GENERAL PROVISIONS 11.1 Notices 11.2 No Indemnity 11.3 Severability 11.4 Choice of Law 11.5 Successors 11.6 Section Headings 11.7 Waiver 11.8 Gender and Number 11.9 Further Actions 11.10 Modifications EXHIBIT A -Land Description EXHIBIT B -Timber Ridge Village Apartments Employee Housing Rental Guidelines DRAFT06/26/2003 MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS THIS MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS ("Agreement") is made and entered into this day of July, 2003. WITNESSETH: WHEREAS, the Town of Vail ("Town") is the owner of certain property and improvements thereon more fully described in Exhibit A attached hereto and incorporated herein by this reference ("the Project"); and WHEREAS, the above referenced Project is a 198-unit, multi-family, rental housing development; and WHEREAS, it is the intent of the Town that the Units in the Project shall be rent- restricted to, and restricted to use and occupancy by, Qualified Residents (except as otherwise permitted herein) as that term is defined in this Agreement; and WHEREAS, the Town desires to maintain the affordable, rental housing on the property in perpetuity. NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledges, the Town hereby declares, covenant and agrees as follows: ARTICLE 1 DEFINITIONS "County" shall mean the County of Eagle, Colorado. "Employee Housing Rental Guidelines" or "Rental Guidelines" shall mean those certain guidelines for this Project attached as Exhibit B hereto and incorporated herein by this reference, which contain the eligibility standards for certifying and prioritizing Qualified Residents, subject to and in accordance with the provisions of Article 3 of this Agreement. "Qualified Residents" shall mean one or more natural persons who are certified by the Owner and/or Property Manager as Qualified Residents for the Project pursuant to the Rental Guidelines as applied to the Project, and in accordance with Article 3 of this Agreement. DRAFT06/26/2003 "Propert~ger" ("Manager") shall mean the management company retained by the Owner to operate the Project in accordance with this Deed Restriction. "Unit" shall mean the residential dwelling units constructed on the Property for rent to Qualified Residents subject to the terms of this Agreement. "Owner" shall mean the current and all future owners of the Project. "Master Lease Unit(s)" shall mean any Unit(s) leased by a business located in the Town of Vail for the purpose of being rented to their employees as Qualified Residents. ARTICLE 2 AGREEMENT BINDS THE PROJECT This Agreement shall constitute covenants running with the title to the Project as a burden thereon, for the benefit of, and enforceable by the Town. This Agreement shall bind the Owner and all Qualified Residents or occupants of the Units. Each and every occupant of a Unit within the Project shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions and restrictions contained herein during each occupant's respective period of occupancy of a Unit. Each and every conveyance of the Project or a portion thereof, or interest therein, for all purposes, shall be deemed to include and incorporate by this reference, the covenants contained in this Agreement, even without reference to this Agreement in any document of conveyance. ARTICLE 3 QUALIFIED RESIDENTS 3.1 Except as otherwise provided herein, the use and occupancy of the Units shall be limited exclusively to rental housing for natural persons who are certified by Owner and/or Manager as Qualified Residents, or other residents as set forth herein, under the Rental Guidelines with respect to the location of such person's place of employment and other criteria that maybe set forth therein. 3.2 Owner accepts, and agrees to comply with, the provisions contained in the Rental Guidelines with regard to qualification and prioritization of Qualified Residents. In accordance with the above criteria as more fully set forth in the Rental Guidelines, Owner and/or Manager shall lease vacant Units to persons who hold the highest priority pursuant to the Rental Guidelines. In the event that two or more potential residents hold the same preference designation, Owner and/or Manager may elect to impose either a lottery system or other objective methodology to select one of the potential residents. Notwithstanding anything to the contrary contained in this Article 3 or in the Rental Guidelines, Owner and/or Manager shall not be required to keep a Unit vacant if a Qualified Resident cannot be located to rent the Unit, or if an otherwise Qualified Resident has a negative credit history, or is otherwise deemed to be an unacceptable tenant by Owner and/or Manager in their reasonable business judgment due to negative DRAFT06/26/2003 factors revealed during Owner and/or Manager's background check of the applicant, all as more specifically set forth in the Rental Guidelines. 3.3 Owner and/or Manager shall not lease any Unit to anon-Qualified Resident(s) except as specifically permitted under certain circumstances by the Rental Guidelines. Prior to the expiration of any lease to anon-Qualified Resident, Owner and/or Manager shall diligently seek to lease the Unit to a Qualified Resident in accordance with this Article 3 and the Rental Guidelines. ARTICLE 4 RESTRICTIONS 4.1 Occupancy. Any Qualified Resident and/or occupants of the Project shall not engage in any business activity on or in a Unit. Owner and/or Manager shall not permit any use or occupancy of a Unit except in compliance with this Agreement. 4.2 No Discrimination. In the rental and occupancy of the Units, there shall be no discrimination on the basis of age, race, creed, color, sex, sexual orientation, disability, religion, national origin, marital status or affiliation. 4.3 Vacancy. When a Unit becomes vacant, Manager shall promptly make it available and actively market said Unit for lease to another Qualified Resident in accordance with Article 3 hereof and the Rental Guidelines. ARTICLE S RESIDENCE 5.1 Units Only For Residential Purposes. The Unit shall only be leased and occupied by residents who will utilize the Units as their principal place of residence, except under limited circumstances as specifically set forth in the Rental Guidelines. A principal place of residence shall mean the dwelling in which one's habitation is fixed and to which a person, whenever he or she is absent, has a present intention of returning after a departure or absence therefrom. In determining what is a principal residence, Owner and/or Manager may take into account, without limitation, the following circumstances relating to a particular resident: location of business pursuits; employment and income sources; residence for income tax purposes; residence of parents, spouse and children, if any; location of personal and real property; motor vehicle registration; and voter registration, all as more fully set forth in the Rental Guidelines. DRAFT06/26/2003 5.2 Eviction Upon Violation Of This Agreement. In the event a Qualified Resident: (1) changes residence, (2) ceases to utilize the Unit as his or her principal place of residence, (3) ceases to be employed within the required geographic area and for the period of time set forth in the Rental Guidelines, except as otherwise provided in Section 3.2 above, (4) engages in any business activity on or in a Unit, or (5) violates any of the other provisions of this Agreement, the Qualified Resident shall be in default hereunder and under his or her own lease. Upon becoming aware of such event, Owner and/or Manager shall immediately take action in accordance with all applicable laws and Rental Guidelines administered through this Agreement to evict the resident, and shall diligently attempt to re-lease the Unit to another Qualified Resident in accordance with Article 3 hereof and the Rental Guidelines. ARTICLE 6 UNIT LEASE APPROVAL AND TERMINATION 6.1 Unit Lease Approval. Units shall not be leased or otherwise occupied unless the occupant has executed a lease in a form approved by the Owner. Before Manager enters into its first lease of a Unit in the Project, Manager shall submit to Owner the form of the lease Manager intends to use. Once so approved by Owner, Manager shall make no material changes to the terms of the approved lease form without the prior written consent and approval of the Owner. The lease shall include a clear reference to this Agreement and a brief summary of this Agreement, including Owner's remedies upon a violation or breach of the terms of this Agreement. The lease shall contain a statement that incorporates the terms and conditions of this Agreement. Upon request from the Owner, Manager shall immediately .provide Owner with a signed copy of any Unit lease, and any other information requested by the Owner reasonably related to a tenant's qualifications related to his or her occupancy of the Unit. 6.2 Owner's and/or Manager's Right To Terminate Lease. Nothing herein shall prevent Owner and/or Manager from terminating the Unit lease of a Qualified Resident based upon the tenant's breach of the terms of the Unit lease. ARTICLE 7 INSPECTION AND HEARING FOR BREACH 7.1 Inspection Upon Reasonable Cause. In anon-emergency situation, and in the event that Owner and/or Manager have reasonable cause to believe that a Unit tenant or any other Unit occupant is violating any provision of this Agreement, Owner and/or Manager through its authorized DRAFT06/26/2003 representative, may inspect the Unit or the lease files kept for the Project between the hours of 8:00 am and 5:00 pm, Monday through Friday, after providing the tenant and/or Unit occupant with no less than 24 hours written notice, which notice to tenant maybe given by posting on the front door of the applicable Unit. Nothing contained in this section shall otherwise preclude Owner and/or Manager from accessing a Unit in an emergency situation where there is an imminent threat to person(s) or property. 7.2 Notice Of Violation And Hearing Request. In the event that an alleged violation of this Agreement is discovered, Manager shall send a notice of alleged violation to Owner and the Unit tenant, if applicable, detailing the nature of the violation and allowing Manager and the Unit tenant, if applicable, ten (10) calendar days from and after the date that the notice is given to cure said violation to the reasonable satisfaction of Owner. Notice to a Unit tenant maybe given by posting on the front door of the applicable Unit. Said notice shall state that Manager and the Unit tenant, if applicable, may request a hearing before Owner within ten (10) calendar days from and after said notice is given to determine the merits of the allegations. If no hearing is requested and the violation is not cured within the ten (10) calendar day period as determined by Owner and/or Manager, said violation and failure to cure shall be considered in violation of this Agreement. 7.3 Hearings. (a) Conduct: When requested by Manager or the Unit tenant under this Article, hearings before the Owner shall be conducted in accordance with the provisions set forth herein. (b) Setting Date: Upon the timely filing of a request for hearing by the Manager or the Unit tenant pursuant to this Article, the date for the hearing shall be set by Owner, which shall not be more than thirty (30) days from the date of the filing of such request. (c) Notice: Not less than fifteen (15) days prior to the date set for the hearing before the Owner, Owner shall cause a copy of the notice of hearing to be sent to Manager and the Unit tenant, if applicable, pursuant to Section of this Agreement (notice to Unit tenant maybe posted on the front door of the applicable Unit). The within required notice shall state the date, time and place of hearing, name of the person(s) requesting the hearing, a brief statement of the subject matter of the hearing, and a statement that information relating to the proposed hearing is available in the Owner's office during regular business hours for review and inspection by the public. (d) Evidence: Hearings before the Owner shall be conducted in such a manner as to afford all interested parties the opportunity to submit for the record, exceptions, contentions, and arguments with respect to the issues involved; provided, that the Owner may limit the taking of evidence to evidence not previously submitted and made a matter of record. The Owner shall base its determination upon statements DRAFT06/26/2003 contained in the request for hearing, upon reports from Owner's staff and consultants, if any, and upon evidence represented to Owner at the hearing. The decision of Owner following such hearing shall be final for the purposes of determining if a violation has occurred. ARTICLE 8 REMEDIES 8.1 Owner shall have any and all remedies provided by law and in equity for violation or prospective violation of this Agreement or any of its terms, including but not limited to: (i) damages, including but not limited to damages resulting from the leasing of a Unit in violation of this Agreement; (ii) specific performance; and (iii) injunction, including but not limited to an injunction requiring eviction of the tenant(s) and an injunction to prohibit the occupancy of a Unit in violation of this Agreement. Upon default by Manager hereof, Owner shall be entitled to exercise its remedies pursuant to the applicable Management Agreement and Colorado law. 8.2 If the Unit tenant is found to be in violation of any of the provisions of this Agreement by Owner and/or Manager as set forth in Article 8, the Unit tenant shall be subject to a penalty of up to one hundred dollars ($100.00) per violation as determined by Owner in each instance. Each occurrence is hereby deemed to be a separate violation of this Agreement, and the within penalty maybe imposed for each and every day during any portion of which a violation is found to have been committed or continued by Unit tenant. 8.3 In addition to the remedies set forth herein, Owner shall have all of the remedies set forth in the Rental Guidelines. ARTICLE 9 TERM OF RESTRICTION 9.1 As to each Unit, this Agreement shall be effective and binding in perpetuity. 9.2 The Owner shall release and waive its ability to enforce the Deed Restriction contained herein, in the event of foreclosure. ARTICLE 10 GENERAL PROVISIONS 10.1 Notices. All notices and demands required or permitted under this Agreement shall be in writing as follows: (1) by actual delivery of the notice to the party entitled to receive it; (2) by mailing such notice by certified mail, return receipt requested, in which case the notice shall be deemed to be given three days after the date of its mailing; (3) by Federal Express or any other overnight carrier, in which case the notice shall be deemed to be DRAFT06/26/2003 given as of the date it is sent; or (4) by facsimile to the facsimile number of the appropriate party indicated below, in which case it will be deemed to be received at the time indicated on the facsimile confirmation report. All notices which concern this Agreement shall be sent or delivered, as the case maybe, to the address or facsimile number of the appropriate party as set forth below, except if changed by a party by notice pursuant hereto: If addressed to Owner: Timber Ridge Affordable Housing Corporation c/o Town of Vail 75 South Frontage Road Vail, CO 81657 Attn: Finance Director Fax: 970.479.2157 With a copy to: Timber Ridge Affordable Housing Corporation c/o Town of Vail 75 South Frontage Road Vail, CO 81657 Attn: Town Attorney Fax: 970.479.2157 If addressed to Manager: Corum Real Estate Group Inc 5251 DTC Parkway, Suite # 200 Greenwood Village, CO 80111 Fax: 303.796.2015 If addressed to a Unit tenant: To the Unit address of the tenant. 10.2 Severability. Whenever possible, each provision of this Agreement and any other related document shall be interpreted in such a manner as to be valid under applicable laws, ordinances, rules, regulations, rulings, orders, requirements and guidelines of federal, state and local authorities and agencies applicable to the Project; but if any provision of any of the foregoing shall hold to be invalid or otherwise prohibited under said laws, ordinances, rules, regulations, rulings, orders, requirements or guidelines of federal, state and local authorities and agencies applicable to the Project, such provisions shall be DRAFT06/26/2003 ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of the Agreement. 10.3 Choice of Law. This Agreement and each and every related document are to be governed and construed in accordance with the laws of the State of Colorado. 10.4 Successors. Owner may assign this Agreement. Upon such assignment, Owner shall be relieved of any further liability hereunder. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors, and assigns of the Parties. 10.5 Section Headings. Article and Section headings within this Agreement are inserted solely for convenience or reference, and are not intended to, and shall not govern or limit the construction of any terms or provisions contained herein. 10.6 Waiver. No claim of waiver, consent or acquiescence with respect to any provision of this Agreement shall be valid against any party hereto except on the basis of a written instrument executed by the Parties to this Agreement. However, the party whose benefit a condition is inserted herein shall have the unilateral right to waive such condition. 10.7 Gender and Number. Whenever the context herein so requires, the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. 10.8 Further Actions. Owner hereby reserves the right to execute such further documents and take such further actions as maybe reasonably required to carry out the provisions and intent of this Agreement or any other agreement or document relating hereto or entered into in connection herewith. 10.9 Modifications. This Agreement and any modifications thereto shall be effective only when made in writing, and recorded with the Clerk and Recorder of the County. DRAFT06/26/2003 (The rest of this page intentionally left blank. Signature page follows.) DRAFT06/26/2003 EXHIBIT A Legal Description of the Land DRAFT06/26/2003 EXHIBIT B TIMBER RIDGE VILLAGE APARTMENTS EMPLOYEE HOUSING RENTAL GUIDELINES DRAFT06/26/2003 I. PURPOSE, ADMINISTRATION AND DEFINITIONS: A. Purpose: The purpose of these Timber Ridge Village Apartments Employee Housing Rental Guidelines ("Rental Guidelines") is to set forth the occupancy eligibility requirements for the deed restricted employee housing rental units ("Units") located within Timber Ridge Village Apartments ("Project"). Prior to leasing or renewing a lease for a Unit in the Project, the occupant must sign an individual acknowledgement of acceptance of the terms of these Rental Guidelines and the Deed Restriction. B. Administration: In accordance with the Deed Restriction, Owner and/or Manager shall administer these Rental Guidelines, including but not. limited to, making determinations regarding the eligibility and priority of applicants to rent and occupy a Unit as a Qualified Resident as set forth herein. Owner and/or Manager will enforce these Rental Guidelines in accordance with Sections _ and _ herein. The Rental Guidelines may be amended from time to time by the Owner with the consent of the Town, provided that such amendment does not adversely affect direct covenants of the Owner's Lenders. C. Definitions: In addition to the other definitions provided within these Rental Guidelines and Deed Restriction, and unless otherwise expressly provided herein, all capitalized terms herein shall the meanings attributed to them as set forth or defined. II. QUALIFIED RESIDENT APPLICATION REQUIREMENTS, SCORING AND PRIORITY; EXCEPTIONS TO FOR TENANCY BY CERTAIN NON-QUALIFIED RESIDENTS UNDER LIMITED CIRCUMSTANCES: A. Application Requirements: Except as otherwise provided herein or in the Deed Restriction, in order to be eligible for consideration to rent a Unit a person must first be certified as a Qualified Resident. A "Qualified Resident" for all purposes hereof shall be a natural person employed in the Town of Vail, or Eagle County, Colorado. In order to become certified as a Qualified Resident, a person must first provide the following information on an application to be provided by Owner and/or Manager: 1. Verification of applicant's place of current employment in Vail or Eagle County at a business that holds a valid and current business license (e.g., wage stubs, employer name, address, telephone number and other appropriate documentation as requested by Owner and/or Manager. 2. a. Evidence of the following: (i) applicant's employment averages or will average, prior to occupancy of any Unit, at least 30 hours per week on an annual basis; (ii) that such level of employment is expected to be maintained for as long as he/she lives in the Unit; and (iii) at least 75% of DRAFT06/26/2003 the applicant's income is earned by working at a business located in Vail or Eagle County. At the time of application, the applicant shall provide the Owner and/or Manager with a signed authorization allowing verification of such information with applicant's current employer(s); or b. evidence that the applicant is a retired individual sixty years or older, who has previously worked a minimum of five years in Eagle County for an average of at least 30 hours per week on an annual basis. 3. Valid Driver's License or State issued identification; 4. Residency history for at least the prior three (3) years, including: prior physical address and years lived there (e.g. 2003-2000) Additionally, proof of all years of employment in the Town of Vail and/or Eagle County should be submitted for priority determination purposes; 5. Employment history, prior three (3) years; including: prior employer(s)' name(s), address(es), telephone number(s); and the years worked there (e.g. 2003- 2000). Additionally, proof of all years of employment in the Town of Vail and/or Eagle County should be submitted for priority determination purposes; 6. Any other documentation which the Owner and/or Manager deems necessary to make a determination of eligibility; 7. A signed statement certifying and acknowledging: (a) that all information submitted in such application is true to applicant's best knowledge; (b) that the applicant intends to occupy the Unit as his/her principal residence; (c) that the applicant understands that he/she may not sublet the Unit without prior written approval of Owner and/or Manager; (d) that the applicant does not own improved residential real estate within Eagle County, and will refrain from such ownership during occupancy of the Unit; (e) that the applicant authorizes Owner and/or Manager to verify any and all past or present employment and residency information, and all other information submitted by an applicant; and (f) that applicant understands that, as set forth in Sections _ and _ of these Rental Guidelines, the Owner and/or Manager reserve the right to review any applications and take any appropriate action regarding such application. B. Scoring Qualified Resident Applications: The following system shall be utilized by Owner and/or Manager to score Qualified Resident applications to lease the Units: 1. For each Qualified Resident whose current place of employment is within the physical boundaries of the Town of Vail (or on Vail Mountain): Three (3) points shall be awarded. DRAFT06/26/2003 2. For each Qualified Resident whose current place of employment is outside the physical boundaries of the Town of Vail (or not on Vail Mountain), but within Eagle County: One (1) point shall be awarded. 3. Applications for Units will be based on the total cumulative points awarded to the Qualified Residents on each such application. A maximum of four (4) Qualified Residents per application for a Unit will be scored and awarded points, with a maximum of 12 points awarded. C. Priority Of Applications: All applications received from potential residents within the one-month period that begins at 12 noon on the 15th of the first month and ends at the 11:59 a.m. on the 15t of the next month, shall create the first month's priority waiting list. Subsequent months' priority lists shall be created in the same manner, and shall be subordinate and cumulative to the previous month's priority list. In the event that two or more potential residents hold the same preference designation on any given month's waiting list, Owner and/or Manager may elect to either impose a lottery system or other objective methodology to select one of the potential residents. D. Master Lease Units: Master Lease Units will be rented in accordance with the Master Lease holders own priority system, provided that said priority system is in compliance with these Rental Guidelines and Deed Restriction. E. Lease Term And Renewal: The Units shall be leased to Qualified Residents, and maybe renewed to Qualified Residents, for periods of no less than six (6) months and no greater than twelve (12) months in duration. F. Interpretation: In evaluating a potential application to lease a Unit, the Owner and/or Manager shall be guided by the .following: 1. An applicant's physical place of employment is controlling, not the mailing address of such place. 2. An applicant's employment on Vail Mountain shall be considered to be within the Town of Vail for eligibility and priority purposes. 3. Seasonal work and part time work shall be counted on a pro-rata basis. Seasonal work and part time work alone may not be adequate to meet the minimum 30 hours per week average annual requirement. This type of work may need to augment other employment to the minimum eligibility requirements. 4. For the purposes of determining the standing of applicants each year of employment reflects one point. For the portion of time in excess of a complete year, Owner and/or Manager will round to the next highest number if the time exceeds six months and one day. If the time is less than six months, Owner and/or Manager will round down. DRAFT06/26/2003 5. Persons who own improved residential real property located in Vail or Eagle County are ineligible for Qualified Resident status. 6. Claims of employment by an applicant that are unable to be verified by Owner and/or Manager will not be utilized in determining an applicant's eligibility or priority. 7. Potential resident applications, and all accompanying documentation, shall become the property of the Owner and/or Manager, and will not be returned to the applicant. G. Non-Applicability To Project Propert~gers: Notwithstanding the Qualified Resident requirements contained herein, the Owner and/or Manager's designated Property Manager(s) shall be permitted to occupy up to two (2) Units without being certified as Qualified Resident(s). H. Leasing Of Units To Non-Qualified Residents: 1. In the event that there are no Qualified Residents available to rent a particular Unit under this Section II, the Owner and/or Manager may rent such Unit to anon-Qualified Resident who will occupy the Unit as their principal place of residence for a lease term not to exceed six (6) months. Before re-leasing the Unit to such non-Qualified Resident (or to any other non-Qualified Resident), the Owner and/or Manager shall take reasonably diligent steps to lease the Unit to a Qualified Resident. 2. In no event may Owner and/or Manager lease a Unit to any resident who will not occupy the Unit as their principal place of residence as set forth in Article of the Deed Restriction, unless first expressly approved in writing by Owner after making findings that extraordinary circumstances and hardship on the Owner and/or Manager exists to justify leasing the Unit to a tenant who will not occupy the Unit as their principal residence. Such tenancy shall be on a month-to-month basis only. I. Misrepresentation. Any misrepresentation by an applicant in submittal material shall disqualify such applicant from being eligible to lease a Unit, and shall be grounds for eviction if such misrepresentation is revealed after such tenant's occupancy. MEMORANDUM TO: Vail Town Council FROM: Pam Brandmeyer, Interim Town Manager RE: Denison Employee Culture Survey DATE: June 26, 2003 Caroline Fisher, PhD, will be joining us at the July 1 work session to provide an overview of the Denison employee survey instrument we've been using to assess the town's overall work environment. We have used the Denison survey. since 1997 to measure our organizational "culture." Caroline will be sharing results of the 2003 employee survey and will discuss how leadership by the Town Council and Town Manager impacts the results. Also, Caroline will assist in developing a culture assessment framework that can be used during the interview process for the new Town Manager. In preparation for Tuesday's discussion, I have attached an article written by Caroline that first appeared in Fast Company magazine describing the importance of culture and its impact on the bottom line. Please take a look and come prepared for an intriguing discussion. Why aren't the "change programs" you've implemented having more impact? • Why aren't the dollars you've invested in training your people paying. oft? • What is it going to take to move this company to the next level of performance and beyond? Like it or not ... CULTURE MATTERS By Caroline J. Fisher, PhD So you think business culture doesn't matter. You think it falls in the realm of "soft stufQ' that the HR folks should handle. Perhaps you think it's a passing fad, big in the 80's and starting to show its trendy head again -and this too shall pass. Or maybe you are one of those who actually think culture matters, but figure you'll focus on it when "things slow down around here." Well, think again. Business culture matters. It can't be delegated to the HR department; it is not a passing fad -and, as a business leader, you really can't afford to wait to deal with it. It might very well be the single most important thing a leader can focus on to create and support sustainable bottom-line results. Read on... WHY ARE WE SO CONFUSED ABOUT CULTURE? The Reason is Simple... Long-standing disagreement in the academic community over its definition and origin; fervent debates regarding horn to measure it, develop it, and change it; and confusion about its impact on business results deft the business community confused and understandably cynical about the whole topic of organizational culture. The concept of organizational culture first appeared in the historical record in 431 B.C., when Pericles believed Athens could win the Spartan war through strong, unified teamwork. But the concept didn't make a significant appearance in business literature until the early 1980s. You remember: In Search of Excellence, by Peters and Waterman. (Check your shelf -it's probably right there next to other dusty tomes on quality circles, restructuring, one-minute management, and MBO.) These two guys presented a strong case that the key to excellent business performance was to be found in the culture of an organization. Unfortunately, problems with their research emerged overtime -and business leaders had a hard time moving these notions from the book shelf to the shop floor. Then, enter... the academics. Although the business world seemed intrigued with the notion that a business might have a culture (not unlike a society, presumably), academia failed to deliver a clear or consistent definition to work with. At one point, there were 164 different definitions of culture, many of which would make your eyes roll back. Try: "a set of symbols, ceremonies, and myths that communicate the underlying values and beliefs of an organization to its employees" (Ouchi, 1981). Or, "a dominant and coherent set of shared values conveyed by such symbolic means as stories, myths, legends, slogans, anecdotes, and fairy tales" (Peters & Waterman, 1982). Interesting insights, but hardly of value to the average manager. Like it or not ... CULTURE A4ATTERS Page 7 Corokne J. Fisher, PhD Another problem with this thing called culture was the confusion about where it comes from. Some argued that culture "happens" with no particular rhyme or reason; others contended that culture is an enduring manifestation of the founder's leadership style. Just as unclear were the arguments about how to change a culture. Viewpoints ranged from "impossible to change a culture once it's established" (the founding father paradigm) to "possible to change, but it requires years, even decades." Indeed, in those years, there was chaos on the culture front, amounting to nothing short of "paradigm wars." 'T'hen there were the natural disagreements over how to measure a company's culture. A powerful force in the academic community insisted that the only way to truly understand your business' culture (which, by the way, was viewed as utterly unique and not comparable to any other's), was to send in a team of researchers to spend months probing into your organization's symbolic and mythological underground. It was almost heresy to imply that culture could be subject to any kind of quantitative assessment. As long as culture stayed in the realm of qualitative understanding (after all, myths are hard to quantify), it was almost impossible to .link it to quantitative business performance -things like profitability, market share, sales growth, etc. The "what does it afiect~°' question was long left unanswered in basic business terms. So it is no mystery why discussions of culture have seemed irrelevant to the business community. Although the concept continued to appear in business literature (with some claims of a direct linkage with business performance), true understanding of culture remained beyond the reach of common sense -- let alone business know-how. (After all, if I can't define it, can't measure it, can't change it, and am unclear how it links to results, why bother? May as well dish up another program of the week!) CUTTING TO THE CHASE... Looking at Culture through a Business Lens Once the view of organisational culture shed from the academic perspective to the business perspective, a model emerged that could guant~ it using business language and concepts. From there it avas a short jump to understanding culture's link with quantifiable business results such as profitability, market share and sales growth. As the paradigm wars waged on, a small band of researchers set out to establish a way to quantify and measure business culture. One of these was Daniel Denison, now at the University of Michigan business school. He was driven by the conviction that,. to make the concept of any use to business and to draw a compelling link with bottom-line business performance factors, there had to be a way to numerically measure "culture." For Denison, it was a matter of moving culture out of the academic realm and into the arena of everyday business realities. The traditional view said culture is embedded in a set of assumptions and beliefs held by the business regarding customers, competitors, employees, suppliers, shareholders and others. benison's view was that these assumptions and beliefs Like it or not... CULTURE MATTERS Page 2 Caroline J. Fisher, PhD don't remain hidden, but are manifested in a set of outward behaviors toward these groups - and that, .since they are observable, these behaviors are quantifiable. It may well take an army of researchers to get a handle on something like assumptions and beliefs, but behaviors are easy to measure! And, after all, isn't it people's behavior that creates the culture that everyone experiences, anyway? While it is true that belief drives behavior, it is equally true that behavior drives results. So when your interest is in the realm of results, Denison argued, it is both practical and appropriate to approach culture via its most obvious dimension ... how people act! Shifting the focus away from the intangible and esoteric to the tangible and behavioral (and thus measurable) allowed breakthroughs in understanding business culture. 950 businesses of all sizes and sectors participated in the development of benison's culture model, which is rooted in workplace behaviors and expressed in workplace language. It is a model designed in the business context, developed by business leaders, and understood from the business perspective -afar cry from traditional culture models developed in the academic context, described in academic language, and requiring a team of translators to make the perilous leap from the ivory tower to the corporate office. From benison's model, it was a short jump to a quantitative culture assessment -which then opened the door for examining the link between culture and things like profit, market share, return on investment, sales growth, and more. THE PUNCH LINE: There is a Link Between Culture and Bottom-Line Results Regardless of side, sector, industry or age, a company's culture impacts the full range of its performance -from "hard "performance indicators such as profitability, market share and salesgroavth, to "softer"factors such as innovation and new product development, quality of products and services, and employee satisfaction. Business cultutr has finally been brought to the bottom line. Over the next few years, benison's model was applied to over 1,200 companies, ranging in size from 10 people to over 300,000, and representing all ages, industries, and sectors. The findings are compelling -and enable you to understand in an entirely new way why you are or are not achieving the results you want. The model measures four basic business culture traits: • Mission -the degree to which the company knows why it exists and what its direction is; • Involvement-the degree to which individuals at all levels of the company are engaged in and hold that direction as their own; • Adaptability -the ability of the company to know what customers want, and the degree to which it can respond to external forces and demands; • Consistency -the company's systems and processes which support efficiency and effectiveness in reaching goals. like it or not... CULTURE MATTERS Page 3 Caroline J. Fiaher, PbD 1. Punch lane: True customer focus is not just knowing what the customer wants-it is also knowing what y ou have to Team to provide it, and infusing your organization with that Teaming. ~F6X~~8 Punch lane: T7vs is not about how involved your managers "say" your front-line workers are. This is about how involved your front-line workers say they are. And how well people at all levels arc positioned, through personal responsibility, authority, accountability, skills, and team orientation, to achieve goals which support the ecxnpany's mission. ~~ ~~~ E~mrttal focus ,. "~ Punch Line: This is not about your company having a mission that the executive team designed which is framed-nicely on- th€ wall over the copier. It is about shared understanding, alignment and ownership of that ~tision throughout your company-with line of sight from job to mission. ~~~ ;'~,. Punch lane: This is not about having a nice set of values that are printed on coffee mugs. 'T'his is about a defined set of behavioral standards that allow the organization to move beyond restrictive policies and procedures and move to general guidelines for effective interaction. It is about walking the talk from the top to the front lines. It is about creating a shared language which helps everyone work more smoothly together-increasing speed in movemrnt and efficiency in achieving results. 'This model does something that other culture models fail to do. It embraces, rather than ignores, the basic paradoxes faced by businesses and their leaders. It accounts for the deep challenges of leadership familiar to most business leaders today: "It's not about doing either this or that. To be successful I must do this and that, even if those two things are in direct conflict with each other!" You know it well, don't you? You need both higher quality and lower cost. You need both precision and speed. You need growth and efficiency. You need to please both shareholders. and employees; both regulators and customers -even when serving one appears to hurt the other. The cold hard reality is that you have to pay attention to the inside and the outside of your business; to the short term and the long term; to things that provide focus and precision and to things that offer flexibility and fluidity. benison's model reflects this reality. Mission represents external focus and supports stability; Involvement represents internal focus and supports flexibility; Adaptability represents external focus and supports flexibility; Consistency represents internal focus and supports stability. '~'~1~,Nt, ~ MISSION ADAPTABILITY ~C#CUS -INTERNAL CONSISTENCY INVOLVEMENT ~?~~~~ SUPPQ~t'TS STABIL TY` SL7PP4R'I'S FLE IBILITY (Denison, 1996) Iike it or not ... CULTUKE MATTERS Page 4 Caroline J. Fisher, PhD benison's research shows that the highest performing companies are those which show strength in all four areas. In other words, they have developed cultures which fully address the paradoxical demands facing them. They are crystal clear why they exist and where they are going (Mission). Their people embrace this defined direction, have line of sight from job to company goals, and bring the full complement of their skills to their work (Involvement). They hear what their customers want, or understand customer needs enough to lead their customers to new products/services, and are able to learn what is needed to respond to changing marketplace demands (Adaptability). And they have systems, structures and processes in place to help align them as a company, while being both efficient and effective in their pursuit of results (Consistency). faaui@CVCw _"-s" ~~ ~~;~E ~ \ ~~ b~~. ~°~{; ~. ~. , -. ,~ ~i .... ,;;,<.~ . s~m~,m x ~ ~( ~. \ ~~ ~~ ~.~P 1, i ~r• P :, C'RGY11i1iO~OS Ek(ffil1M;otUt ji .,Y.\`, ;~ .`! 1, ~,~ .k',."I ~~,+ ~ < .. ~ ~ -- `~~ -y__ ~'~" kttmnsdF+xeis I... ~. ..ir High Performance Companies Composite of companies having an average ROI of 30%. Low Performance Companies Composite of companies having an sFaa~e average ROI of 9%. ,, ". % ..~ y /:. ~~~ G~~ As a business leader, you might be saying, "Yeah right, if we were strong in all those areas, we'd be turning good results, too." But, wait -the findings tell us more. Sure, they show us that the highest performing companies are strong in all areas simultaneously (for example, showing 31% ROI or more). The findings also show us that there are relationships between individual culture traits and specific performance measures. benison's findings show the following relationships between culture and performance: ~~~~. ~~ Lske it or not ... CULTURE MATTERS Page S Carnline J. Fdrher, PhD I!tofittabilityJ ROA Revenue Growth/ Sales Growth Market Share- Innovati©n Quality of Ptaducts & Services Empldyee ' " Satisfaction s orted b s orted b s orted b s orted b s orted b S orted Mission Mission Mission ~ 'ssion* Involvement 'Involvement Involvement Involvement Ada tabili Ada tabili Ada tabili Ada tabili Ada tabili Consistenc Consistenc Consistenc (Denison, 1996) ~` Jee Yage u Revenue growth and market share (both externally-oriented performance measures) are supported by the externally-oriented cultural traits of Mission and Adaptability. Quality and employee satisfaction (internally-oriented performance measures) are supported by the internally-oriented culture traits of Involvement and Consistency. Innovation (a performance measure related to flexibility) is supported by the flexibility- enhancing culture traits of Involvement and Adaptability. By now you are starting to get the picture. The performance measure of profitabilitq, by far the most comprehensive and complex measure of business performance, is supported by strength in all four cultural areas. In 1997, a second phase of research was conducted by Caroline Fisher, PhD at the California School of Professional Psychology. These findings confirm benison's and extend them down the path of understanding what creates success in today's businesses. These research findings revealed that Mission alone, as a single cultural factor, impacts the greatest number of bottom-line performance measures in a company. (Of Deruson's list, all except innovation were affected.) Thus, if a company is simply clear on why it exists, and has a vision, goals and strategies that are embraced throughout the company, five of the six performance factors can be impacted. The fact that innovation is not impacted by Mission alone is logical - a singular focus runs counter to the diverse thinking required for innovation and creativity. Fisher's 1997 findings regarding the culture-business performance link... MISSION: Impacts five of six performance factors INVOLVEMENT: Impacts four of six performance factors ADAPTABILITY: Impacts three of six performance factors CONSISTENCY: Impacts two of six performance factors ... And you thought this stuff was "soft'? Involvement is the second most important culture trait, impacting four of the six performance measures (all except market share and sales growth). Adaptability impacts three of the six (sales growth; market share; and innovation); Consistency impacts two of the six (quality and employee satisfaction). Like it or not ... CULTURE A4ATTERS Page 6 Caroline J. Fiaher, PhD There are two critical messages here. First, as a business leader, when you're facing a crisis or trying to produce a step change in results, do not focus on Consistency alone. Ironically, when leaders face such challenges, they usually impose a new system or process or structure - an attempt to gain control. Admit it. You've been there. But, when this is done without an accompanying emphasis on Mission and Involvement, you're bound to miss your mark. At best, you might incrementally improve product quality or employee attitudes. It's equally likely that you'll end up worse off than before, having increased the levels of cynicism and resistance to any future changes that really will become necessary. The second message is perhaps more important. If you want to produce breakthrough results (not just incremental change, but a whole new level of performance), look to Mission and Involvement. Period. Between these two culture traits, all six performance measures can be impacted. The other two culture traits (Adaptability and Consistency) count, of course, for full and sustainable performance over the long run -but without Mission and Involvement they won't get very fax. If you want to produce breakthrough results (not just incremental change, but a whole 'new level of performance), look to Mission and Involvement. Period. * Fisher's research shows that employee satisfaction, like profitability in benison's research, is supported by strength in all four culture traits. It is becoming clear that employees are not only looking for things associated with Involvement (having a say) and Consistency (effective support systems), but they are also demanding Mission (being part of companies doing positive things and with a clear path) and Adaptability (providing customers with what they want, and having flexibility in learning and changing to meet new demands). SO WHY IS ALL THIS SO IMPORTANT? This link bet2veen culture and results. allowsyou, as a business leader, to preczsely targetyour organization's culture for specific results, and to consciously lead and monitoryour culture for sustainable success No more "spray and pray"approaches to organizational change and improvement initiatives. The corporate world has spent trillions of dollars attempting to change over the last 15 years. Training programs, consulting services, process improvements -the list goes on... By one estimate, customers as well as employees rate the effectiveness of these programs at 10 - 20% (Ashkenas, 1995). And that might be optimistic! There are many reasons for such failure. Often, the desired outcome or result was not clearly defined up front, with an initiative applied to clearly match that result. Often a leader desires to see a broad range of performance improvement and applies the latest management fad, hoping somehow it's the answer. Alas; usually it's not. Sometimes, such initiatives can create meaningful change over time. For example, even though an employee survey has never changed a company, we have slowly learned that employee input is important, and its value has, in many cases, elevated surveys to far more than just another check-off item in a manager's list of "things I gotta do." The problem with Like it or not ... CULTURE MATTERS Page 7 Caroline J. Fiaber. PbD such an evolutionary approach, however, is that companies don't have the time, energy, or resources for that anymore. They might go out of business by the time Darwin wins out. Companies today can't mess around. They need results -and they need to precisely target their changes to hit those results on the nose! If a leader first defines a very specific result (i.e., increased sales growth or increased innovation) and then intervenes at a cultural level to achieve that result (Adaptability and Mission for sales growth; Adaptability and- Involvement for innovation; etc.), they would be fax more likely to get the result they want, not to mention getting it faster! Another benefit of the cultural approach to getting results: A company can monitor and gauge how well it is developing its baseline sustainability -its ability to perform for the long haul. After all, companies with strength in all four culture categories win consistently over time. Viewing an organization through this lens is useful for other reasons as well. If a company is weak in all areas of culture (i.e., low scores in all four culture categories), the best place to start is with Mission and Involvement (remember, you can ultimately impact all six performance measures through these two traits). 'This can be true of either start-up ventures (do you know why you're doing what you're doing and do your people see your vision?); merging companies (creating a common "third-point" of focus to help each group take their eyes off each other and put them onto the goal); or companies in decline (who once thrived even without a clear understanding of why they existed; competition no longer allows this luxury). 'The links between individual culture traits and specific performance indicators let you precisely target your organization's culture to meet specific results and to consciously build and monitor the organization's culture to ensure sustainable success. Remember, hope is not a strategy. If you truly understand something, you can make the right choices to do something about it. WHAT BUSINESS LEADERS OFTEN DON'T WANT TO ADMIT... or Four Ways to Avoid Dealing with Your Corporate Culture 7) Argue that the research is fla2ved andyou need more p~nof. 2) Contend thatyour company is d~erent, and the usual rules don't apply to you. 3) Acknowledge that it's something the .company should think about -then delegate the matter to HIS. 4) Get screamin' mad about last quarter's results and hire another marketingguy. Hey, you know how it is... Ifyou don't admit it's important, you don't have to deal with it. Andyou certainly don't have to make it apriority. After all, ifyou were serious about change,you'd have to make ', serious changes inyourself... Is it really all that important) The catch in all this? It starts with you -the leader. When all is said and done, this may well be where the belief systems really need to change! Iike ft or not ... CULTUKE MATTERS Page 8 Carokne J. Fisher, PhD Do you believe this stuff matters? If not, you can forget about it and go implement another process you read about in some other magazine. It's just plain easier to tell yourself that culture doesn't matter or ... even if it doer, it can't be managed ... or even if it could ... the people in HR are paid to deal with that stuff .... But if you are convinced that culture is a strategic lever for success, you've cleared one of the biggest hurdles between you and getting the results you want. Be careful, here: there's a big difference between intellectual belief (a casual, "Yeah, that makes sense to me") and full- fledged conviction (an unshakable, "I know it in my boner that this is right"). When the rubber hits the road, and all the resistors and obstacles start popping up all around you, those beliefs are going to need real roots! Remember, this is not something you can expect someone else to do first. You must walk this walk. You must be the first, most competent and consistent in displaying the desired behavior. You must model how it's done. All eyes are on you to see if it is real. Again, if you need help testing, challenging, and deepening your personal convictions, get it. If you need help preparing yourself for real breakthrough and all its implications, get it. Time and tide wait on no man (or woman!). So figure it out. What results do you want from your business? Improved profitability? Increased innovation? Then: • Take a long hard look: Determine what your culture really looks like right now. Profile it; sharpen your understanding of its dynamics and implications. This is no time for "amateur night at the Lodge" -engage the experience and perspective of professionals. • Focus on what matters most: Identify those factors that directly support the results you want. Consider their implications in the context of your industry and the marketplace. Again, this is where the right expertise can really pay for itself. • Prepare for the change: Clarify your expectations, check your commitment, enroll key teammates, identify critical support resources for the long haul. • Make it happen!: And hold on tight .. . As hard as it may be to deal with, especially for leaders who have succeeded for so long by avoiding this "people stuff," the fact is that this is not something that can be delegated to HR. Culture is the work of today's leader. And the behavior changes needed to shape a business culture must start at the top, weave through every level and every function, and be consistently led, strategically managed. You can't just talk about it -you have to do it. IN A NUTSHELL ... So, you ask, why aren't the "change programs" you've initiated having more impact? Why aren't the dollars you've invested in training your people paying off? What is it going to take to move this company to the next level of performance and beyond? Like it or not ... CULTTJBE MATTERS Page 9 Caro&ne J. Fisher, PbD The answer to these questions can be found in what may be the last place you'd normally care to look: your business culture. Those "hard" results you've dreamed so much about have now been discovered smack-dab in the middle of "soft stuff." Yes, culture matters -and it matters in a big way. When all is said and done, it matters as much as profits and market share and sales growth. With the right tools, information, and support, you can quickly understand the essence of your business culture -see exactly how it's supporting or hindering your company's performance. You can then zero-in on those aspects of your culture which lead to the specific results you long for. It's not rocket science. It's about understanding the true relationship between culture and bottom-line results -then using this understanding in a very deliberate and pragmatic way to get what you want. Properly led, resourced, and managed, it doesn't even have to be a long, drawn-out process. If you take your stand, engage the very best of yourself and your people, and take advantage of the resources now available through the hard work, study, and experience of others, things can happen quicker than you might ever have imagined possible. It might even take your breath away. So look in the mirror. Take a slow, deep breath. If you so choose, your next step can be to finally build the success you've long been looking for. In a place you never believed you'd find it. Are you ready for some culture? For more information, contact Caroline Fisher (Fisher Consulting Group) at 970-476- 1207 or 970-390-9420. Like it or not ... CULTURE MATTERS Page f0 Caroline J. Fisher, PhD BUSINESS CULTURE: MYTHS & TRUTHS M the Culture is intangible, esoteric, and difficult to manage. Truth: Culture is behavioral, measurable, and manageable. It takes awareness. It takes attention. It takes leadership. Myth: We still don't understand how corporate culture works or how it is directly linked to bottom-line business results. It's too "squishy." Tru h: Eighteen years of research involving 1,200 companies show us clearly how culture works -and reveal a clear link between it and a company's profitability, sales/revenue growth, market share, quality, innovation, and employee satisfaction. ,M~th: Culture is solely embedded in the founder of the company or, worse yet, "culture just happens." Truth: Effective cultures are almost always the result of thoughtful leadership, involving the entire organization in a focused direction. As a leader, by taking the right steps, you can rapidly change your organization's culture at any point in its evolution. M h: Culture is a luxury to be thought about when there is extra time and resources. Truth: Cultural issues have strategic impact that must be managed to preserve business value and ensure success. There is probably nothing you can do with your time and money that will have more long-term leverage fox your business success than focus on your culture. Myth: Changing corporate culture is a cumbersome, difficult, and painstakingly slow process. Truth: By precisely targeting and developing behaviors that support known results, and applying lessons learned through others' experience, both culture change and its desired performance improvements can be quickly achieved. Like it or not ... CULTURE MATTERS Page 11 Carokne J. Fisher, PhD