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HomeMy WebLinkAbout2009-06-02 Agenda and Support Documentation Town Council Evening Session VAIL TOWN COUNCIL EVENING SESSION AGENDA 07a 7M VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 6:00 P.M., JUNE 2, 2009 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. Public comments on work session item may be solicited by the Town Council 1. ITEM /TOPIC: Citizen Participation. (15 min.) 2. ITEM /TOPIC: Town Manager's Report. a. Revenue Update. (15 min.) PRESENTER(S): Stan Zemler 3. ITEM /TOPIC: The Town of Vail applied to be recognized as a Bicycle Friendly Community, a program established by the League of American Bicyclists. The town has been recognized with a Bronze award for its commitment to bicycling. Elizabeth Train with Bikes Belong will present the award to Mayor Cleveland. (10 min.) PRESENTER(S): Gregg Barrie / Elizabeth Train, Bikes Belong 4. ITEM /TOPIC: One appointment to the Vail Local Licensing Authority (LLA) board. (5 min.) PRESENTER(S): Pam Brandmeyer ACTION REQUESTED OF COUNCIL: Please interview the Local Licensing authority (LLA) Applicant to fill one (1) vacancy at the work session and appoint one person to the LLA board at the evening meeting (two year term, expires May 31, 2011). BACKGROUND: All applicants to the LLA must be citizens of the United States, qualified electors of the Town of Vail, and have resided in the Town of Vail for not less than two years preceding appointment, and shall have no direct financial interest in any license to sell alcoholic beverages or any location having any such license. Duties of the five - member board include review of all Town of Vail liquor license applications. There is currently one vacancy on the LLA. The Town received one (1) application for the vacancy. The Council needs to interview the applicant at the work session and then make the appointment to the LLA at the evening meeting. The applicant is Jill Landman Alfond. 5. ITEM /TOPIC: Consent Agenda. b. Approval of 05.05.09 & 05.19.09 Town Council Minutes. (5 min.) 6. ITEM /TOPIC: Presentation of 2008 audit report. (15 min) PRESENTER(S): Michael Jenkins from McMahan & Assoc. ACTION REQUESTED OF COUNCIL: None BACKGROUND: None STAFF RECOMMENDATION: None 7. ITEM /TOPIC: Award Roadway Slurry Seal Maintenance Contract. (10 min.) PRESENTER(S): Tom Kassmel ACTION REQUESTED OF COUNCIL: Authorize the Town Manager to enter into an agreement with A -1 Chipseal Company to complete the 2009 Capital Street Maintenance Slurry Seal Project. BACKGROUND: Staff has received bids from three contractors for the 2009 Capital Street Maintenance Slurry Seal Project, with A -1 Chipseal Company being the low bidder. The project was publically bid using Bid Bridge, a reverse auction public bid process. This is the first time Vail has used this type of reverse auction process, as a result of a presentation made by Bid Bridge last fall. The process was successful and resulted in a low bid, well below the budgeted estimate. The following are the three final bids: A -1 Chipseal Company $137,687.90 Quality Resurfacing Co $139,700.50 Intermountain slurry seal $173,500.00 STAFF RECOMMENDATION: Authorize the Town Manager to enter into an agreement with A -1 Chipseal Company to complete the 2009 Capital Street Maintenance Slurry Seal Project, in the amount of $137,687.90. 8. ITEM /TOPIC: First reading of Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto. (30 min.) PRESENTER(S): Bill Gibson ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 12, Series of 2009, on first reading. BACKGROUND: On May 5, 2009, the Town Council tabled the first reading of Ordinance No. 12, Series of 2009, to its June 2, 2009, hearing by vote of 5 -1 -0 (Foley opposed). STAFF RECOMMENDATION: The Planning and Environmental Commission recommends that the Town Council approves, on first reading, Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto. 9. ITEM /TOPIC: Ordinance No. 15, Series of 2009 an Ordinance Defining Electronic Personal Assistive Mobility Device ( "EPAMD "); Establishing Regulations Regarding the Operation of Such Devices in the Town of Vail; and Setting Forth Details in Regard Thereto. (15 min.) PRESENTER(S): Matt Mire ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 15, Series of 2008, on first reading. BACKGROUND: See Staff Memorandum. STAFF RECOMMENDATION: Approve, approve with modifications, or deny Ordinance No. 15, Series of 2008, on first reading. 10. ITEM /TOPIC: Second reading of Ordinance No. 7, Series 2009, an ordinance repealing and re- enacting Ordinance No. 5, Series of 2006, and amending Special Development District No. 39, Crossroads, and setting forth details in regard thereto. (10 min.) PRESENTER(S): Warren Campbell / Mauriello Planning Group ACTION REQUESTED OF COUNCIL: Approve, modify, or deny Ordinance No. 7, Series of 2009, on second reading. BACKGROUND: On March 9, 2009, the Town of Vail Planning and Environmental Commission held a public hearing on a request for a major amendment to Special Development District No. 39, Crossroads. The purpose of the major amendment is to increase the maximum allowable number of dwelling units from 77 to 78 dwelling units. Upon review of the request, the Planning and Environmental Commission voted 6 -1 -0 (Pierce opposed) to forward a recommendation of approval of the request to the Vail Town Council. On May 19, 2009, the Vail Town Council approved the first reading of Ordinance No. 7, Series of 2009, by a vote of 4 -3 -0 (Cleveland, Foley, Daly opposed). STAFF RECOMMENDATION: The Planning and Environmental Commisison recommends that the Vail Town Council approves Ordinance No. 7, Series of 2009, on second reading. 11. ITEM /TOPIC: Second reading of Ordinance No. 13, Series of 2009, an ordinance amending the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for the conversion of two existing fractional fee club units to dwelling units, located at 16 Vail Road (Vail Plaza Hotel) / a portion of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (10 min.) PRESENTER(S): Bill Gibson ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 13, Series of 2009, on second reading. BACKGROUND: On May 19, 2009, the Town Council approved the first reading of Ordinance No. 13, Series of 2009, with modification by a vote of 4- 3-0 (Cleveland, Foley, and Newbury opposed). STAFF RECOMMENDATION: The Planning and Environmental Commission recommends the Town Council approves Ordinance No. 13, Series of 2009, on second reading. 12. ITEM /TOPIC: Resolution No. 17, Series of 2009, a Resolution Approving an Intergovernmental Agreement Between the Town of Vail, Colorado and the State of Colorado Department of Revenue Regarding the Authorization to Administer Commercial Driver's License Driver Skills Testing; and Setting Forth Details in Regard Thereto. (5 min.) PRESENTER(S): Greg Hall / Matt Mire ACTION REQUESTED OF COUNCIL: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with DOR. BACKGROUND: The Town of Vail has been providing CDL examiner services for our employees for many years. Without the approval of the state in the form of the IGA, the town's C.D.L. Examiner licenses will be lost and we will not be able to train and test our new seasonal drivers next fall. If that happens, we will need to find another third party tester, most likely in the Denver area, to test our drivers. The expenses and timing would be very prohibitive. STAFF RECOMMENDATION: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with the DOR in a form approved by the Town Attorney. 13. ITEM /TOPIC: Adjournment. (8:25 p.m.) NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT OT CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR EVENING SESSION WILL BEGIN AT 6:00 P.M., TUESDAY, JUNE 16, IN THE VAIL TOWN COUNCIL CHAMBERS. ovia" ar VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Town Manager's Report. a. Revenue Update. PRESENTER(S): Stan Zemler ATTACHMENTS: 06.02.09 Revenue Highlights TOWI OF VAIL REVEI UE HIGHLIGHTS May 29, 2009 Sales Tax When all sales tax returns are received for the month of April, collections for the month are expected to be $1,229,258 up 11.9% from April, 2008 due to the timing of Easter (April '09 versus March '08). April collections are also up 8.8% from the 2009 budget. Year -to -date total sales tax collections are down 14.7% from 2008 and down 9.0% from budget. The ski season so far (Nov — April) is down 12.4% from last ski season. Inflation as measured by the consumer price index was flat, or -.7% for the month of April compared to prior. Use Tax Use tax collections as of May 27, 2009 total $97,769, a 40% decrease from this time last year. Ski Lift Tax Ski lift tax revenue of $2.4 million through April is down 6.3% from this time last year and November - April ski season revenue is down 3.3% from the prior ski season. Construction Permit Fee Revenue Construction permit revenue through May 27 totals $264,654 down 76% from 2008. The 2009 budget assumed a 62% drop. The decrease in activity from the prior year is due to both major and non -major redevelopment projects underway in 2008. Major redevelopment projects so far this year make up 60% of the total. Revenue from non - major projects is down 50% from 2008. Real Estate Transfer Tax (RETT) RETT collections through May 27, 2009, total $854,542. This amount is a 72% decrease from last year due to both major and non -major redevelopment projects. Eagle County as of March, 2009 is down 72% in sales dollars and down 62% in the number of sales transactions. At this time last year, the town had collected over $3.0 million in RETT from sales of major redevelopment projects such as Arrabelle, Forest Place, One Willow and the Vail Plaza. Year -to -date 2009 has seen limited sales from major redevelopment projects and is down 77 %. Collections not related to major projects year -to -date are 66% down from this time last year. Parkin Year -to -date parking revenue from daily sales of $3.5 million is up 23% from this time last year. For the ski season (November 2008 through April 2009), parking revenue of $4.5 million is up 22% from the 2007/2008 season, mainly due to increased pass sales and pricing. 090602 Revenue Highlights - I - 2 -1 -1 Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: The Town of Vail applied to be recognized as a Bicycle Friendly Community, a program established by the League of American Bicyclists. The town has been recognized with a Bronze award for its commitment to bicycling. Elizabeth Train with Bikes Belong will present the award to Mayor Cleveland. PRESENTER(S): Gregg Barrie / Elizabeth Train, Bikes Belong ATTACHMENTS: Award Letter LEAGUE OF AMERICAN BICYCLISTS 1612 K St_, IOW, Suite 800 Washington. DC 20006 -2850 °g 8 ca„ wEBSFFE www.bicyclefriendlycommunity.org Bicyclists EMAIL bikeleague @bikeleague.org Bicycle Friendly Community PHONE 202.$22.1333 FAx 202.822.1334 May 7, 2009 Gregg Barrie Town of Vail 1309 Elkhorn Drive Vail, CO 81657 Dear Gregg: Thank you again for applying for the Bicycle Friendly Community (BFC) designation. As you now know, we have determined that Vail should be recognized with a Bronze award. This award is presented only to communities with remarkable commitments to bicycling. Enclosed you will find your award certificate. In the next few weeks, you will also be receiving your BFC road Sign as well as feedback from the League on what you can do to make Vail more bicycle - friendly. Your BFC designation will be due for renewal in March of 2013. At that point your community will be reevaluated so we urge you to make as many improvements as possible in the meantime! Of course, if you wish to renew sooner please feel free to do so. We look forward to seeing the community's progress. We would like to promote the community on our website so please email us five photographs that we can use to produce your specific BFC community page. Please contact BFC program specialist Alison Dewey via email Ali sonk. bikeleague.org or phone 2 02 -822 -1333 for more details on settings up an award ceremony and your community page. Once again, accept our congratulations on your tremendous efforts to create a truly Bicycle Friendly Community. Sincerely, Bill Nesper Program Manager League of American Bicyclists P:202- 822 -1333 billrabikelea_ue.org 3 -1 -1 Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: One appointment to the Vail Local Licensing Authority (LLA) board. PRESENTER(S): Pam Brandmeyer ACTION REQUESTED OF COUNCIL: Please interview the Local Licensing authority (LLA) Applicant to fill one (1) vacancy at the work session and appoint one person to the LLA board at the evening meeting (two year term, expires May 31, 2011). BACKGROUND: All applicants to the LLA must be citizens of the United States, qualified electors of the Town of Vail, and have resided in the Town of Vail for not less than two years preceding appointment, and shall have no direct financial interest in any license to sell alcoholic beverages or any location having any such license. Duties of the five - member board include review of all Town of Vail liquor license applications. There is currently one vacancy on the LLA. The Town received one (1) application for the vacancy. The Council needs to interview the applicant at the work session and then make the appointment to the LLA at the evening meeting. The applicant is Jill Landman Alfond. ATTACHMENTS: Jill Alfond Letter of Interest (512812009) L orelei Don aldson - Liquor Licensing Authority Page 1 From: Jill Landman Alfond Cjiilalfond@mac.com> To: Cldonaldson @vailgov.com- Date: 5127/2009 3:20 PM Subject: Liquor Licensing Authority I am writing to you to put my name into consideration for the Town of Vail Liquor Licensing Authority. I am a 17 -year resident of the Vail Valley, the last 8 of which I have been a Vail resident. As my family and I continue to enjoy life in the mountains, I feel a sense of responsibility to this beautiful town that I am fortunate enough to call home. I would very much like to give my time back to a town that I feel has given so much to me, my husband, and our children. While, like many others, we were tempted (for a short time) to move down valley, ultimately we decided that we moved to Vail to live in Vail and to support Vail with our time and talents seem like the right thing to do for our family. My husband and I were involved in the ownership of Ray's Restaurant (no longer in operation) in Edwards, and like most people who have spent time in Vail, I have worked in numerous restaurants and bars — I feel like this knowledge of the industry as both an owner, an employee and a consumer and I feel I could quite nicely put all of the experience together working toward responsible oversight of liquor licensing and consumption. I also have another vantage point which makes me interested in this position: that is on the special events side. I have planned special events for over 13 years locally, including for the resort, indepentently, and on behalf of several non- profit entities. I know from the event side that a tremendous amount of planning goes into making these productions successful, and I think all the special events which occur in town, from small scale to large -scale are valuable to help secure Vail's position as the premier mountain community - -I see responsible stewardship of these events, especially partaining to liquor licensing, as a key to Vail's long -term strategy to continue to attract and maintain guest visits throughout the year. Thank you for your consideration. Kind regards, Jill Landman Alfond Dear Lorelei, Help! 'v1+'e recently moved so I am not sure which address is on file with the town (and I will get this taken care of right away, if I haven't already) My address WAS 950 Red Sandstone Rd #28 Vail CO 81657- -new address is 1345 Westhaven Circle Vail, CO 81657 970.376.5860 -- my apologies, 1 _just realized that I used no letterli+cad when I sent that. Thanks, .Till 4 -1 -1 Ova" 7m VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Consent Agenda. b. Approval of 05.05.09 & 05.19.09 Town Council Minutes. ATTACHMENTS: 05.05.09 Minutes 05.19.09 Minutes Vail Town Council Meeting Minutes Tuesday, April 21, 2009 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Dick Cleveland. Members present: Dick Cleveland, Mayor Mark Gordon Kevin Foley Margaret Rogers Andy Daly Not present: Farrow Hitt Kim Newbury Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Input. Wayne Glass of Bond appeared before the Council as a follow up to a staff memorandum that was included in the Council's packet regarding his interest in creating a business to provide Segway (balancing scooter) tours along Vail's recreation paths. Balancing scooters are currently prohibited on bike and pedestrian paths in Vail because they're considered to be a motor - driven cycle. Glass asked the Council to consider amending the town code prior to enactment of a new Colorado law that would grandfather such use if enacted within 30 days. The Council directed staff to add the topic as an agenda item for the next available work session. Darrell Bangert from Twin Lakes asked the Council to support the use of Segways on the recreation paths, noting he was also interested in renting Segways. Bangert said he took a Segway tour in Chicago recently where the activity proved extremely popular. Robin Henzler, director of Children's Garden of Learning, and Cindy Lagace, director of the Vail Child Care Center, presented an Early Childhood Champion award to the Town of Vail for being an advocate of early childhood education. The town was selected for the award by child care professionals in Eagle County. Lagace also was an award recipient for inspiration in early childhood care and education. The second item on the agenda was the Vail Youth Recognition Award. 1 5 -I -1 The Council recognized winners of the Vail Youth Recognition Award, which is sponsored by the Town of Vail and the Vail Valley Exchange. The recipients are Eleanor Cahill of Battle Mountain High School and Cynthia Edgerton of Vail Mountain School. The purpose of the award is to recognize and reinforce outstanding achievement by youth of the upper Vail Valley, both for their individual achievements and as role models for their peers. As such, each of the winners received $1,000 college scholarships. The third item on the agenda was an appoint of one member to the Vail Local Housing Authority (VLHA) Board. The Council voted 6 -0 to reappoint Ethan Moore to the Vail Local Housing Authority to a term expiring May 31, 2014. The town had received four applications: Scott Ashburn, Jason Hartman, Ethan Moore (incumbent board member) and Pamela Hopkins. The fourth item on the agenda was the Vail Local Licensing Authority (VLLA) vacancy appointments. The Council voted 6 -0 to reappoint Mark Conlin and Kevin (KJ) Williams to the Vail Local Licensing Authority for terms expiring May 31, 2011. The town had received two applications for three vacancies. The Town Clerk will now re- publish the vacancy notice to attract applicants for the remaining seat. The fifth item on the agenda was the Town Manager's Report. Kathleen Halloran, the town's budget manager, presented a monthly revenue update. March sales tax revenue of $2.5 million is down 25 percent from March 2008 and down 17 percent from the budget projections. Year -to -date total sales tax collections are down 18 percent from 2008 and down 11 percent from budget. The ski season, November through March, is down 14.5 percent from last ski season. Use tax collections are up 5.6 percent from this time last year, while construction permit revenue is down 69 percent from 2008, which is currently pacing with the 2009 budget. Real Estate Transfer Tax collections totaled $649,388 as of April 28, a 72 percent decrease from last year due to both major and non -major redevelopment projects. Parking revenue of $3.4 million was up 18 percent from this time last year. The revenue was budgeted at a 16 percent increase. The sixth item on the agenda was a Request For Proposals (RFP) to construct two new employee housing units on the Town owned lot at 2657 Arosa Drive (commonly known as the A- Frame) which is legally described as Lot 8, Block C - Vail Ridge. The Council voted 6 -0 to authorize the issuance of a Request for Proposals (RFP) for construction of a duplex on a town -owned lot in West Vail to be used as employee housing. The property is located at 2657 Arosa Drive and was acquired in 1995 as part of a land exchange with the U.S. Forest Service. The .418 -acre lot is zoned primary- secondary. During an overview, Housing Coordinator Nina Timm noted at the time of the town's acquisition, an A -frame residence, built in 1972, was located on the property and was used as rental housing by the town until it was torn down in 2000 to make way for new employee housing units. At the time, the town hired an architect to design a new employee housing duplex. However, the town changed its priorities before beginning construction of the new units. During Council's review of the draft RFP, Timm clarified that a lottery would be held to identify buyers prior to commencing construction of the units to minimize the town's risk and that the sale of the deed restricted units would 2 5 .1.2 recover the town's investment. During the public comment period, Bob Armour, a resident of the neighborhood and former mayor, told of his involvement in acquiring the property on behalf of the town. He also expressed concerns about drainage and wetlands issues, noting that conditions have intensified on the site since an earlier analysis. Armour offered support for issuing the RFP and noted it may only be possible to develop one unit on the site. If the site proves difficult to develop, Armour suggested leaving the site as open space rather than placing a deed restriction on the property and selling it as was suggested by the staff as a possible alternative. Mark Gordon urged staff to follow the timetable outlined in the RFP which would include issuing the RFP on May 6 with responses due by May 21 and selection of a development team by June 16. Gordon said the schedule would result in employee housing being under construction by fall and would reinforce the council's commitment to its housing priority. The seventh item on the agenda was the 2009 Asphalt Overlay Project Award. The Council voted 6 -0 to authorize the Town Manager to enter into an agreement with A- 1 Chipseal Company, in a form approved by the Town Attorney, to complete the 2009 Asphalt Overlay Project in the amount of $348,848. The town had received four bids, all of which were within budget and below the engineer's estimate. A -1 Chipseal was the low bidder. The project consists of maintenance asphalt overlays on portions of the roads in Main Vail and West Vail, more specifically, Spraddle Creek Road, and those roads in the Red Sandstone Drive area. The four bids were as follows: A -1 Chipseal Company, $348,848; Elam Construction, $393,831; B &B Excavating, $426,831.83; and Grand River Construction, $439,298.50. The project is budgeted within the Capital Street Maintenance Budget. During discussion, Kim Newbury suggested that since prices are low, perhaps the town should consider adding additional streets to the overlay project that are scheduled for next year. Town Engineer Tom Kassmel agreed to return to the Council with a possible change order once more information is known. The seventh item on the agenda was a Timber Ridge Redevelopment discussion. The Council voted 6 -0 to continue the due diligence process and begin a 60 -day pre - development negotiation with Vail Timber Ridge, LLC of El Paso, Texas, in its pursuit to redevelop the Timber Ridge property for employee housing. The objective of the due diligence process is to determine if the group has the ability to complete the project as proposed. The town issued a Request for Qualifications and Proposals for the eastern half of the property in December 2008 which generated 10 responses. Of the 10, six teams were interviewed by the Vail Local Housing Authority (VLHA) and staff. The field was then narrowed to four finalists. Those groups were interviewed by the Town Council and the VLHA on April 21. Council members said they were optimistic about the possibilities for redevelopment. Andy Daly noted the proposal meets the long -term affordable housing requirements of the town with 619 pillows on half the site. In addition, the town would retain ownership of the property and $11 million in debt would be eliminated, both of which are important priorities for the town, he said. The proposal provides for occupancy in 2011. In offering the motion to begin a new phase of the redevelopment process, Margaret Rogers noted the proposal offered by the Timber Ridge, LLC group most closely satisfies the redevelopment criteria established by the town. Kim Newbury said the process has been interesting in that it was difficult to compare the four proposals as each offered varying concepts for financing, density and the manner in which parking was addressed. Mark Gordon said he was extremely optimistic that a redevelopment scenario would soon come to fruition. Team members from Timber Ridge, LLC have experience in numerous housing developments across the 3 5 -1 country and are known for their development and operation of multi -unit housing including military and student housing. The eighth item on the agenda was the First Reading of Ordinance No. 10, Series of 2009 adopting a major amendment to Special Development District No. 2, Northwoods, pursuant to Article 12 -9(A), Special Development District, Vail Town Code, to allow for a lobby addition and locker reconfiguration; located at 600 Vail Valley Drive ( Pinos Del Norte, Building C) /Part of Tract B, Vail Village Filing 7, and setting forth details in regard thereto (PEC090009). The Council voted 6 -0 to approve first reading of the ordinance. Prior to the vote, Planner Nicole Peterson provided an overview, noting the proposed lobby addition and locker reconfiguration trigger a major amendment requirement under Section 12 -9A -2, Vail Town Code; because the proposed lobby addition expands the existing building footprint more than five feet, and the lockers were originally built under a major amendment (Ordinance No. 33, Series of 1991). On April 13, 2009, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions to the Vail Town Council of Ordinance No. 10, Series of 2009, by a vote of 4 -0 -1 ( Kjesbo recused). During the Council's discussion, Andy Daly said he had two conclusions about the project following a site visit earlier in the day. First, that Pinos Del Norte is stepping up to do some upgrading to their facilities that will substantially improve the property. And, secondly, that no encroachments are being requested. Dick Cleveland added that no additional GRFA (gross residential floor areas) is being requested. The ninth item on the agenda was the First reading of Ordinance No. 11, Series of 2009, an ordinance to amend Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11 -3 -3, Prescribed Regulations Amendment, Vail Town Code, to establish regulations for temporary building banner signs within the Town of Vail. The Council voted 6 -0 to approve the ordinance on first reading and directed staff to revise the ordinance for second reading to include provisions that will create a trial period for the regulations which would permit placement of large banner signs on qualifying buildings during the summer of 2009. The Council has asked for numerous stipulations to limit the number of signs and the duration for their display. The vote occurred after several concerns were expressed with the ordinance as written. Prior to the vote, Planner Rachel Friede explained the applicant, the Vail Valley Foundation, had applied for a prescribed regulations amendment to Title 11, Sign Regulations, Vail Town Code, in order to facilitate the use of large banners on buildings under construction to advertise community events. On April 13, 2009, the PEC failed to pass a recommendation of approval to the Vail Town Council (2 -3 vote, with Kurz, Lindall, Kjesbo opposed, Pierce and Palladino absent). Based upon staff's review of the criteria outlined in Section V of the staff memorandum to the PEC dated April 13, 2009, and the evidence and testimony presented, Friede said the Community Development Department was recommending denial of the ordinance. As proposed, banner signs up to 1,500 square feet per development site would be allowed on buildings under construction in the commercial and business districts of Vail Village, LionsHead and West Vail to advertise community events that have a Town of Vail special events permit and /or receive sponsorship from the Vail Commission on Special Events. The signs, no more than two per development site, would be displayed for as long as the building has an active building permit or within 14 calendar days of the completion of the advertised community event. No lighting would be allowed. The signs would require approval by the 4 5 -1 -4 Design Review Board prior to installation. During discussion, several Council members said they disagreed with the staff's assessment that the signs would veer away from the character of the community. Andy Daly said he was comfortable with the concept in that it provides information and excitement in an otherwise unattractive space. He noted the proposal was not meant to be signage in the traditional sense, and, therefore, staff's findings based on compliance with other provisions of the sign code were irrelevant. Kim Newbury said she didn't think the signs would be a distraction for motor vehicle operators as suggested by the staff. Margaret Rogers said the signs would complement the town's focus on marketing and would be visible to travelers along Interstate 70, reminding them that Vail is a vibrant community. Due to the creative and artistic way in which the signs would market Vail, Rogers suggested the Art in Places Board should review the applications rather than the Design Review Board. During the public comment period, Bob Armour, a former mayor, said he was "appalled" by the proposal, saying it was more akin to Times Square than Vail, Colorado. Jim Lamont of the Vail Homeowners Association suggested the banners would be more productive if they were hanging on buildings in Chicago or New York "where they belong" (to market Vail). Lamont expressed caution, saying the proposal could be viewed as the community devaluing itself. In the end, Council members agreed the ordinance was too open ended as currently written and offered its support to suggestions by Dick Cleveland to rewrite the ordinance as a pilot program with numerous restrictions. The tenth item on the agenda was the First reading of Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto. (PEC080074). At the request of the applicant, the Council voted 5 -1 (Cleveland against) to table the ordinance to the June 2, 2009, meeting. The request was made after Council members expressed concern about sufficient public benefits associated with the project and after a vote to approve the ordinance failed, 1 -5, with Mark Gordon casting the single vote of approval. On April 13, 2009, the PEC voted 5 -0 -0 to forward a recommendation of approval to the Town Council for establishment of the proposed special development district (SDD). During an overview by the applicant, Dominic Mauriello said the SDD was being proposed to create a townhouse zoning scenario that would address 40 years of variances on the property. As such, the eastern half of the row houses, located at 303 Gore Creek Drive, units 7 -14, would be allowed to construct future individual renovations under the proposal. In exchange for the deviations, public benefits offered by the applicant include deeding 915 square feet of property to the town, represented as a 10 foot wide strip of land to be added to the eastern half of Roger Staub Park, an employee housing fee in lieu payment representing a 15 percent housing mitigation rate, rather than the 10 percent rate currently required by the town code and converting the driveways to heated pavers as redevelopment occurs to conform with the town's Streetscape Master Plan. During discussion by the Council, Margaret Rogers said she wasn't convinced there are enough public benefits associated with the project, noting the heated pavers would only be a benefit if they were done in an environmentally sensitive way. She suggested consideration of a public art component, as well. Mark Gordon said he, too, would prefer a public art benefit. Kevin Foley expressed concerns about existing vegetation that would be lost during redevelopment of the end unit and agreed the public benefit was lacking. Andy Daly said he thought use of an SDD approach was inappropriate in this circumstance and that remaining units of the row house should apply for a variance like the others have done. He said the SDD would change the 5 5 -1 -5 character of the neighborhood, especially as it relates to building height. Dick Cleveland said he was concerned the SDD didn't address the current parking deficit and that the park dedication wasn't sufficient in providing a public benefit. During the public comment period, Jim Lamont of the Vail Homeowners Association expressed the importance of fair and consistent treatment, saying, "if you like this approach to bulk and mass, you need to presume that others will attempt to follow the lead." The eleventh item on the agenda was the Second reading of Ordinance No. 8, Series of 2009, An Ordinance making supplemental appropriations to the Town of Vail General Fund, Capital Projects Fund, Capital Projects Fund, Real Estate Transfer Tax Fund, Dispatch Services Fund, Heavy Equipment Fund and Debt Service Fund of the 2009 Budget for the Town of Vail, Colorado. The Council voted 6 -0 to approve the ordinance. Prior to the vote, Budget Manager Kathleen Halloran explained the ordinance had been revised downward from first reading for a total of 7.2 million across all funds. Items in the revised supplemental were limited to re- appropriations for projects currently underway and under contractual obligation, or other projects that may be underway as previously approved by the Council, but due to a change of scope require additional funds. Another $3 million in projects have been placed on hold until a full budget review in June. The twelfth item on the agenda was Resolution No. 11, Series 2009, A Resolution Designating Bank Accounts for E- Commerce Transactions for the Town of Vail with Stan Zemler, Pam Brandmeyer, Judy Camp and Jacque Lovato, as the Designated Signers on that Account. Permitted by the Charter of the Town, Ordinances, and the Statutes of the State of Colorado. The Council voted 6 -0 to approve the resolution which enables the town to subscribe to an eCourier transaction system that allows electronic recordation of land records with the Eagle County Clerk and Recorder. The eCourier company requires a bank account for automatic withdrawals for the recording fee. The account will be an imprest account with a minimum balance replenished as recording fees are incurred. The thirteenth item on the agenda was Resolution No. 12, Series 2009, A Resolution Approving the Amendments to the Vail Transportation Master Plan. The Council voted 6 -0 to approve the resolution as presented by Town Engineer Tom Kassmel and reviewed during the work session. The resolution consolidates and updates the transportation master planning and design efforts into a single master plan document. Kassmel said the plan is based upon existing conditions, current trends and anticipated growth and is intended to be a guide for the town's transportation system for the next 20 years. During discussion, Andy Daly noted his interest in seeing the plan evolve from its traditional scope to one that is more innovative in limiting automobile use. He also questioned the ability of the private sector to help with an assigned $75 million in improvements due to the downturn in the economy, saying the $100 million estimated price tag is not sustainable. He said it will be up to the Town Council to make sure the right projects are being prioritized and selected that will benefit the community over the long term. Kevin Foley said he preferred moving forward with the Simba Run underpass sooner rather than later to help improve transit connections. 6 5 -1 -6 The fourteenth item on the agenda was Resolution No. 13, Series 2009, A Resolution Approving the Skier Drop -Off Easement Agreement Between the Town of Vail, Colorado (the "Town ") and the Vail Corporation dba Vail Associates, Inc ( "VAI "). The Council voted 6 -0 to approve the resolution following an overview by Town Attorney Matt Mire. He explained that VAI is the owner of certain real property in Vail commonly known as the "North Day Lot" and that the town has given requisite development plan approvals for developing the North Day Lot as a multi - family employee housing residential project together with other related improvements. The approved development plans provide for the construction and relocation of a nine (9) space skier drop -off area. He said the town and VAI wish to enter into the Skier Drop -Off Easement Agreement in furtherance of implementing the use of the skier drop -off area for its intended purposes and of integrating such use with the future North Day Lot development. During discussion, Kevin Foley suggested the need to identify an interim skier drop -off solution during construction of the North Day Lot project. The fifteenth item on the agenda was the Resolution No. 14, a resolution approving the increased fees in the provision of fire protection services out of town limits. In reviewing Resolution No. 14, which is intended to increase fees charged for fire protection services outside of town limits to recover the town's costs and a companion fee schedule, the Council voted 6 -0 to table the matter to the next meeting. Although the proposed rate of 4.021 mills per dollar of assessed valuation covers the town's costs, according to Finance Director Judy Camp, Council questioned whether the 1991 rate of 14 cents per square foot would result in more revenue for the town. The other option is for property owners located outside the town to pay a per call rate. Other fees administered by the Fire Department were last increased in 2003 and do not recover the town's costs. The proposed fee schedule is intended to increase fees to a level appropriate for 2009. The sixteenth item on the agenda was Adjournment. The Council voted to adjourn at 8:55 p.m. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk 7 5 -1 -7 Vail Town Council Meeting Minutes Tuesday, May 19, 2009 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Dick Cleveland. Members present: Dick Cleveland, Mayor Mark Gordon Kevin Foley Margaret Rogers Andy Daly Farrow Hitt Kim Newbury Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Input. There was none. The second item on the agenda was a Eagle County Assessor Update. Eagle County Assessor Mark Chapin reported in Colorado the county assessor must reevaluate property in every odd year. He explained home sales volume (single family as well as multi - family) is currently down 80% from one year ago. Chapin continued by explaining there is a five to twenty percent decline in the market place where sales are taking place. "We are unable to change any property evaluations made after June 20, 2008." Hitt asked what could be done to make assessed values reflect the current economic climate. Chapin responded, "There is no avenue." During a pause for public comment, Paul Rondeau asked when the 5'/z% property tax escalation limit was put into place. The third item on the agenda was the Town Manager's Report. There was none. The fourth item on the agenda was the Consent Agenda. a. Approve 04.07.09 & 04.21.09 Town Council Minutes. 5 -2 -1 Foley moved to approve the minutes with minor amendments with Daly seconding. The motion passed unanimously, 7 -0. The fifth item on the agenda was a Presentation on the Sustainable Design Assessment Team (SDAT) grant award and process in the Eagle River Valley. Bertuglia asked Council to support and participate in the SDAT review process, and consider recommendations when results of the assessment are presented in September 2009. The Colorado West Chapter of the American Institute of Architects (AIA) received a grant in the amount of $15,000 from the AIA National division for a Sustainable Design Assessment Team (SDAT) review of the Eagle River Valley. The study area includes East Vail to Dotsero, Minturn, Red Cliff and the metro districts of Beaver Creek, Bachelor Gulch, and Cordillera. Bertuglia currently serves on the steering committee for the SDAT, and will assist with coordinating municipal leaders' participation to option feedback throughout the process. The University of Colorado's Center for Sustainable Urbanism will assist with follow up on the implementation of results of the SDAT team's efforts. The SDAT program focuses on the importance of developing sustainable communities through design. The mission of the SDAT program is to provide technical assistance and process expertise to help communities develop a vision and framework for a sustainable future. AIA Colorado West representative Chris Green explained the goals and parameters of the program. He then asked for Council support and active town participation in the project. The sixth item on the agenda was the First reading of Ordinance No.7, Series 2009, an ordinance repealing and re- enacting Ordinance No. 5, Series of 2006, and amending Special Development District (SDD) No. 39, Crossroads. On March 9, 2009, the PEC held a public hearing on a request for a major amendment to SDD, No. 39, Crossroads. The purpose of the major amendment is to increase the maximum allowable number of dwelling units from 77 to 78. Upon review of the request, the PEC voted 6 -1 -0 (Pierce opposed) to forward a recommendation of approval of the request to Council. On March 17, 2009, Council tabled the first reading of Ordinance No. 7, Series of 2009, at the applicant's request to the April 21, 2009, public hearing. On April 21, 2009, Council tabled this item to the May 19, 2009, public hearing. Applicant representative Dominic Mauriello explained the space currently slated as a retail location would not function well for that purpose. Rogers moved to approve the ordinance with Newbury seconding. Rogers commented, "I don't believe the space works as a commercial space." Campbell and Mire explained there were operating covenants in regard to the movie theater and bowling alley proposed to be located in the structure. Daly clarified the ordinance would add no public benefits. Newbury noted a retail to residential conversion was recently approved in the Vail Village Inn. Cleveland said, "The current financial situation is not a criteria for any anything we are being asked to do I think it would be a perfect spot for a restaurant." The motion passed, 4 -3 with Daly, Foley and Cleveland opposed. The seventh item on the agenda was the First reading of Ordinance No. 13, Series of 2009, an ordinance amending the approved development plan for Phase IV of SDD No. 6, Vail Village Inn, pursuant to Article 12- 9A -10. 5 -2 -2 Planner Bill Gibson asked Council to consider Ordinance No. 13, Series of 2009, an ordinance amending the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for the conversion of two existing fractional fee club units to dwelling units and the conversion of one dwelling unit to a fractional fee club unit, located at 16 Vail Road (Vail Plaza Hotel) / a portion of Lots M, N, and O, Block 5D, Vail Village Filing 13he PEC held public hearings to discuss this request on April 27 and May 11, 2009. On May 11, 2009, the Planning and Environmental Commission voted 7- 0-0 to forward a recommendation of approval. The applicant, Waldir Prado said the penthouse in the building would not be finished and is currently uninhabitable. "At this point there is no demand for that The fact that it is not finished is not a negative but rather a positive." Newbury moved to deny the ordinance with Cleveland seconding. Applicant representative Connie Dorsey clarified where the proposed units were located, both facing Vail Mountain. The units were the only units with no weeks sold. The motion failed 2 -5, with Newbury and Cleveland voting in favor. Gordon then moved to uphold the PEC decision with Rogers seconding. During a pause for public comment, a fractional unit owner, Robert Vogel, spoke against the ordinance. The motion passed 4- 3, with Cleveland, Foley and Newbury opposed. The eighth item on the agenda was the Second Reading of Ordinance No. 10, Series of 2009 adopting a major amendment to Special Development District No. 2, Northwoods, pursuant to Article 12 -9(A), Special Development District, Vail Town Code, to allow for a lobby addition and locker reconfiguration; located at 600 Vail Valley Drive (Pinos Del Norte, Building C) /Part of Tract B, Vail Village Filing 7. On May 5, 2009 the Vail Town Council approved Ordinance No. 10, Series of 2009 on first reading, by a vote of 6 -0 -0, based on criteria and findings in Section VII of Staff's April 13, 2009, memorandum to the PEC, and evidence and testimony presented. On April 13, 2009, the PEC forwarded a recommendation of approval, with conditions to the Vail Town Council of Ordinance No. 10, Series of 2009, by a vote of 4 -0 -1 ( Kjesbo recused). Foley moved to approve the ordinance with Daly seconding. The motion passed unanimously, 7 -0. The ninth item on the agenda was the Second reading of Ordinance No. 11, Series of 2009, an ordinance to amend Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11 -3 -3, Prescribed Regulations Amendment, Vail Town Code, to establish regulations for temporary building banner signs within the Town of Vail. Planner Rachel Friede explained the applicant, the Vail Valley Foundation (VVF), applied for a prescribed regulations amendment to Title 11, Sign Regulations, Vail Town Code, in order to facilitate the use of large banners on buildings under construction to advertise community events. On April 13, 2009, the PEC failed to pass a motion for a recommendation of approval to the Vail Town Council (2 -3 -0, Kjesbo, Kurz, Lindall opposed). Failure to pass a motion for a recommendation of approval is by default a recommendation of denial to Council. On May 5, 2009, Council unanimously approved Ordinance No. 11, Series of 2009 (6 -0 -0) with the following changes, which are reflected in the ordinance language: 1. Maximum of five signs within the Town of Vail at any time 2. One sign per building 3. Ninety (90) day maximum per sign 4. Sign removal maximum seven (7) days after event completion. Newbury moved to approve the ordinance with Rogers seconding. VVF representative Scott Bluhm said the proposed 5 -2 -3 banner would be tastefully designed. The motion passed 6 -1, with Hitt opposed. The ordinance will expire on September 30, 2009. The tenth item on the agenda was Resolution No. 14, a resolution approving the increased fees in the provision of fire protection services out of town limits. Town Council requested a review of fees charged for town services to assure the town's costs are recovered. Fees currently charged do not recover the town's costs. The proposed fee schedule increases fees to a level appropriate for 2009. Daly and Rogers said the resolution meets the needs of the Fire Department as well as to the town. Daly moved to approve the resolution with Rogers seconding. The motion passed unanimously, 7 -0. The eleventh item on the agenda was Resolution No. 15, Series of 2009, a resolution adopting an amended budget and making appropriations to pay the costs, expenses and liabilities of the Vail Local Marketing District, for its fiscal year January 1, 2009 through December 21, 2009 of 2009, adjusting the 2009 Vail. Daly moved to approve the resolution with Newbury seconding. The motion passed 6 -1, with Foley opposed. Foley said he believed the VLMD should directly fund special events and support the free operation of the gondola during the summers. The twelfth item on the agenda was the Discussion of Resolution No. 16, Series of 2009, a Resolution Approving the Increase in the Fee Schedule for Vail Fire & Emergency Services. The Town has adopted the International Fire Code (the "Fire Code ") under Title 10 of the Town of Vail Municipal Code. The Fire Code provides that a fee be paid for each permit in accordance with the schedule as established by the applicable governing authority. Periodically such fees should be adjusted to reflect the cost of the provisions of such services and to compensate for inflation. Daly moved to approve the resolution with Rogers seconding. Foley clarified there would be a two hour minimum charge for services. The motion passed unanimously, 7 -0. The thirteenth item on the agenda was Adjournment. Foley moved to adjourn with Daly seconding at approximately. The motion passed unanimously, 7 -0. Dick Cleveland, Mayor ATTEST: 5 -2 -4 Lorelei Donaldson, Town Clerk 5 -2 -5 Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Presentation of 2008 audit report. PRESENTER(S): Michael Jenkins from McMahan & Assoc. ACTION REQUESTED OF COUNCIL: None BACKGROUND: None STAFF RECOMMENDATION: None ATTACHMENTS: 2008 TOV Final Audit TOWN OF V Financial Statements December 31, 2008 6 -1 -I Town of Vail, Colorado Financial Statements December 31, 2008 Table of Contents Page INDEPENDENT AUDITOR'S REPORT Al -A2 Management's Discussion and Analysis 131 — B7 Government -Wide Financial Statements: Statement of Net Assets C1 Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 Proprietary Funds: Statement of Net Assets C5 Statement of Revenues, Expenses and Changes in Fund Net Assets C6 Statement of Cash Flows C7 Fiduciary Funds: Statement of Fiduciary Net Assets C8 Statement of Changes in Fiduciary Net Assets C9 Notes to the Financial Statements D1 — D32 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual E1- E2 Major Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual: Capital Projects Fund E3 Real Estate Transfer Tax Fund E4 Conference Center Fund E5 Vail Marketing Fund E6 Vail Local Marketing District E7 Vail Reinvestment Authority E8 Supplementary Information: Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual F1 Enterprise Funds: Schedule of Revenues, Expenses and Change in Fund Net Assets — Budget (Non -GAAP Basis) and Actual - With Reconciliation to GAAP Basis — Timber Ridge Affordable Housing Corporation F2 Schedule of Revenues, Expenses, and Change in Fund Net Assets — Budget (Non -GAAP Basis) and Actual - With Reconciliation to GAAP Basis — Dispatch Services Fund F3 Internal Service Funds: Schedule of Revenues, Expenses, and Change in Fund Net Assets — Budget (Non -GAAP Basis) and Actual - With Reconciliation to GAAP Basis — Heavy Equipment Fund F4 Schedule of Revenues, Expenses and Change in Fund Net Assets — Budget (GAAP Basis) and Actual - Health Insurance Fund F5 6-1 -2 Town of Vail, Colorado Financial Statements December 31, 2008 Table of Contents (Continued) Page Supplementary Information (continued): Internal Service Funds (continued): Combining Statement of Net Assets F6 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets F7 Combining Statement of Cash Flows F8 Major Special Revenue Funds: Schedule of Project Expenditures - Budget (GAAP Basis) and Actual: Capital Projects Fund F9 Real Estate Transfer Tax Fund F10 Local Highway Finance Report F11 — F12 Undertaking to Provide Continuing Disclosure: Table I — Debt Service Coverage G1 Table III — History of Town 4% Sales Tax Receipts G1 Table IV — Monthly Comparison of Collections of Sales Tax G1 Table V — Sales Tax Collections by Principal Sales Tax Generators G2 Table VI — Capital Projects Fund — 2008 Actual / Projected 2009 — 2012 G2 Table XIX — History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 Table XX — General Fund — 2008 Budget and Actual Comparison / 2009 Budget G4 Table XXI — Outstanding Revenue Obligations G4 Single Audit Reports and Schedules: Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards H1 —1-12 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133 H3 — H4 Schedule of Findings and Questioned Costs H5 Schedule of Prior Audit Findings and Questioned Costs H6 Schedule of Expenditures of Federal Awards H7 6 -1 -3 M MCMAHAN AND ASSOCIATES, L. L.C. Certified Public Accountants and Consultants S' 4h' WEB SITE: WWW.MCMAHANCPA.COM U SUITE 222 /AVON CENTER TELEPHONE: (970) 84' - 8800 1 00 WEST BEAVER CREEK BLVD. FACSIMILE: (970) 845 1 A P.O. BOX 5850 AVON, CO 8 1 620 E - MAIL: MCMAHAN @MCMAHANCPA.COM INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado, (the "Town "), as of and for the year ended December 31, 2008, which collectively comprise the Town's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the Town. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above presently fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado, as of December 31, 2008, and the respective changes in financial position and cash flows, where appropriate, thereof for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2009 on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control of financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis in section B is not a required part of the basic financial statements but is supplementary information required by U.S. generally accepted accounting principles. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Performing services for local governments throughout Colorado D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Members: American Institute of Certified. Public Accountants /Colorado Society of Certified Pudic Accountants National and Colorado Government Finance Officers Association /Colorado Municipal League 6 -1_4'1 To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado The budgetary schedules in section E are not a required part of the basic financial statements but are supplementary information required by U.S. generally accepted accounting principles. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The accompanying supplementary information in section F, including individual fund budgetary statements, combining internal service fund financial statements, budgetary statements for project expenditures, and the Local Highway Finance Report, and tables included for the Undertaking to Provide Continuing Disclosure in section G are presented for purposes of additional analysis and are not a required part of the basic financial statements. Additionally, the Schedule of Expenditures of Federal Awards included in the Single Audit section is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and is not a required part of the basic financial statements of the Town. Such information, except for the tables included for the Undertaking to Provide Continuing Disclosure in section G, have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The tables included in the Undertaking to Provide Continuing Disclosure in section G have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. /KA4, "i �;A, McMahan and Associates, LLC May 15, 2009 6 -1 -A2 MANAGEMENT'S DISCUSSION AND ANALYSIS 6 -1 -6 Town of Vail, Colorado Management's Discussion and Analysis December 31, 2008 As management of the Town of Vail, Colorado (the "Town "), we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended December 31, 2008. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements. The Town's basic financial statements include three components: 1) government -wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Financial Highlights: • The assets of the Town exceeded its liabilities at the close of the 2008 fiscal year by $150,313,905 (net assets). Of this amount, the unrestricted net assets of $65,923,188 may be used to meet the Town's ongoing obligations to citizens and creditors. • The Town's total net assets increased in the 2008 fiscal year by $13,640,840 which was attributable to an increase from governmental activities of $13,394,529 and an increase of $246,311 from business -type activities. • At December 31, 2008, the unrestricted and undesignated fund balance of the General Fund was $20,770,510 or approximately 70% of total fiscal year 2008 General Fund expenditures. Government -wide financial statements: The government -wide financial statements are designed to provide readers with a broad overview of the Town's finances in a manner similar to a private- sector business. The Statement of Net Assets presents information on the Town's assets and liabilities, with the difference between the two reported as net assets. Overtime, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected grant revenues or earned but unused vacation leave.) Both of the government -wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) and those that are supported by external revenues (business -type activities). The governmental activities of the Town include general government, public safety, public works, transportation, and economic development. The business -type activities of the Town consist of housing conducted through Timber Ridge Affordable Housing Corporation (a component unit of the Town), and dispatch services, conducted through Vail Public Safety Communications (an enterprise fund of the Town). The government -wide financial statements include not only the Town itself (known as the primary government), but also a legally separate marketing district (Vail Local Marketing District), a legally separate urban renewal authority (Vail Reinvestment Authority), and a non - profit housing corporation (Timber Ridge Affordable Housing Corporation) for which the Town is financially accountable. Because these component units function for all practical purposes as departments of the Town, their financial position and activities have been included as an integral part of the primary government. The government -wide financial statements can be found on pages C1 and C2 of this report. B1 6 -1 -7 Overview of the Financial Statements (continued) Fund Financial Statements: A fund is an accounting entity that has a set of self - balancing accounts that records all financial transactions for specific activities or governmental functions. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. The Town's funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the governments' near -term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town's governmental funds include the General Fund, Debt Service Fund, Capital Projects Fund and three Special Revenue Funds — Real Estate Transfer Tax Fund, Vail Marketing Fund and Conference Center Fund — as well as the Vail Local Marketing District and the Vail Reinvestment Authority, which are component units of the Town. The Town adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for all funds to demonstrate compliance with the state budget statute. The basic governmental fund financial statements can be found on pages C3 and C4 of this report. Proprietary Funds: The Town reports two categories of proprietary funds — Internal Service and Enterprise. The Heavy Equipment Fund and Health Insurance Fund are internal service funds, while Timber Ridge Affordable Housing Corporation, which is a component unit, and the Dispatch Services Fund are reported as enterprise funds. As their name implies, the internal service funds provide services to the Town's governmental activities. Timber Ridge Affordable Housing Corporation provides affordable rental housing to people who work in Vail and the Dispatch Services Fund provides dispatch services to emergencies service agencies throughout Eagle County. Enterprise fund functions are presented as business -type activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages C5 through C7 of this report. The Town also presents a budgetary comparison for its proprietary funds. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the Town's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements, for the Town's pension plan, can be found on pages C8 and C9 of this report. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The Notes to the Financial Statements can be found on pages D1 through D32 of this report. B2 6 -1-K Overview of the Financial Statements (continued) Government -wide Financial Analysis: As previously mentioned, the government -wide financial statements are designed to provide readers with a broad overview and long -term analysis of the Town's finances, in a manner similar to a private- sector business. Net assets may serve over time as a useful indicator of a government's financial position. In the case of the Town, governmental assets exceeded liabilities by $151,227,309 at the close of the most recent fiscal year. Approximately 56% of the Town's net assets are invested in capital assets (land, buildings, equipment), less related outstanding debt. Since the Town uses these capital assets to provide services to citizens, these assets are not available for future spending, including provision of resources to repay the debt. The table below shows the Town's net assets for 2008 and 2007. Town of VaiI's Net Assets Governmental Business -type Activities Activities Total 2008 2007 2008 2007 2008 2007 Current and Other Assets $ 78,109,018 $ 65,568,905 3,321,825 2,481,918 81,430,843 68,050,823 Capital Assets 93,425,956 91,148,565 18,242,427 18,941,053 111,668,383 110,089,618 Total Assets 171,534,974 156,717,470 21,564,252 21,422,971 193,099,226 178,140,441 Long -term Liabilities Outstanding 7,100,762 9,006,317 21,299,455 21,843,291 28,400,217 30,849,608 Other Liabilities 13,206,902 9,878,373 1,178,201 739,395 14,385,103 10,617,768 Total Liabilities 20,307,664 18,884,690 22,477,656 22,582,686 42,785,320 41,467,376 Net Assets: Invested in capital assets, net of related debt 85,100,956 81,027,233 (2,667,573) (1,579,702) 82,433,383 79,447,531 Restricted 1,957,334 1,910,702 - - 1,957,334 1,910,702 Unrestricted 64,169,019 54,894,845 1,754,169 419,987 65,923,188 55,314,832 Total Net Assets $ 151,227,309 137,832,780 (913,404) (1,159,715) 150,313,905 136,673,065 The Town's long -term liabilities from governmental activities decreased due to principal payments on outstanding debt. The Town's 1998B Sales Tax Revenue Bonds were retired in 2007; the 1998A Sales Tax Revenue Bonds were refunded December, 2008 and replaced with 2008 Sales Tax Revenue Bonds. This refinancing provided savings to the town in future interest expense. Both the 2002B and 2008 Sales Tax Revenue Bonds will be retired in 2012. Long -term liabilities from business activities decreased as a result of principal payments on the corporation's 2003B bonds. The Timber Ridge Affordable Housing 2003A bonds and note payable mature in 2032. Additional information regarding the town's long -term debt is available on pages D21 — D28 of this report. B3 6 -1 -9 Overview of the Financial Statements (continued) The chart below provides financial information from the Town's Statement of Activities for the years 2008 and 2007. Town of Vail's Changes in Net Assets Governmental Business -type Activities Activities Total 2008 2007 2008 2007 2008 2007 Revenue: Program Revenue Charges for services $ 11,773,173 $ 13,702,631 4,446,392 4,212,852 16,219,565 17,915,483 Operating grants 1,854,144 1,250,530 607,183 586,404 2,461,327 1,836,934 Capital grants 2,182,739 2,577,262 - 33,000 2,182,739 2,610,262 General Revenue Property and ownership tax 5,691,365 3,354,140 - 5,691,365 3,354,140 Sales and lodging tax 23,242,350 21,720,918 23,242,350 21,720,918 Other taxes 13,503,198 10,515,803 - - 13,503,198 10,515,803 Interest and other revenue 1,725,276 3,091,813 49,773 64,692 1,775,049 3,156,505 Capital contributions, net - 57,489 - - - 57,489 Transfers 75,000 (77,860) (75,000) 77,860 - Total Revenue 60,047,245 56,192,726 5,028,348 4,974,808 65,075,593 61,167,534 Expenses: General government 8,039,678 8,078,045 - - 8,039,678 8,078,045 Public safety 8,272,889 7,616,966 2,284,357 2,028,263 10,557,246 9,645,229 Public works and transportation 20,718,192 20,306,036 - - 20,718,192 20,306,036 Culture and recreation 5,885,254 5,039,823 5,885,254 5,039,823 Economic development 3,301,533 2,164,093 - - 3,301,533 2,164,093 Housing - - 2,497,680 2,941,828 2,497,680 2,941,828 Interest 435,170 532,190 - - 435,170 532,190 Total Expenses 46,652,716 43,737,153 4,782,037 4,970,091 51,434,753 48,707,244 Increase in Net Assets 13,394,529 12,455,573 246,311 4,717 13,640,840 12,460,290 Net Assets January 1 137,832,780 125,377,207 (1,159,715) (1,164,432) 136,673,065 124,212,775 Net Assets December 31 $ 151,227,309 137,832,780 (913,404) (1,159,715) 150,313,905 136,673,065 Governmental Activities: Governmental activities increased the Town's net assets by $13,394,529. Key elements of this increase are as follows: • Revenue exceeded expenditures in the General Fund, Capital Projects Fund, Real Estate Transfer Tax Fund and Vail Reinvestment Authority Fund by $4.2 million, $.3 million, $5.5 million, and $1.0 million, respectively. • Capital outlay exceeded depreciation during the year by $2.3 million. • Long -term liabilities were reduced by $1.9 million through principal repayments. Business -type Activities: Business -type activities are comprised of: Timber Ridge Affordable Housing Corporation, a component unit of the Town established to provide affordable housing to people working in Vail, and Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. B4 6 -1 -10 Financial Analysis of the Town's Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds: The focus of the Town's governmental funds is to provide information on near - term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $63,080,606 an increase of $8,685,035 from the prior year's ending fund balances. The following details ending fund balances for the past five years: Fund 2004 2005 2006 2007 2008 General Fund $11,053,614 $ 13,673,808 $ 15,433,051 $ 19,834,717 $ 23,002,886 Capital Projects Fund 8,190,903 10,249,191 12,216,605 12,109,128 10,906,870 Real Estate Transfer Tax 5,682,551 7,463,545 8,956,389 11,769,273 17,288,266 Conference Center Fund 5,691,334 8,237,877 8,621,901 9,046,283 9,264,476 Vail Marketing Fund 25,590 36,211 46,517 62,619 83,635 Vail Local Marketing District 488,899 696,895 825,793 1,006,736 1,026,588 Debt Service Fund 182,238 305,522 249,256 252,710 174,334 Vail Reinvestment Authority 1,252 1,203 1,833 314,105 1,333,551 Total $31,316,381 $40,664,252 $ 46,351,345 $ 54,395,571 $ 63,080,606 The General Fund and RETT Fund balances have grown steadily over the past five years, while the Capital Projects Fund has fluctuated as funds have been spent on major projects. The Conference Center Fund was created in 2003 to administer the sales and public accommodations taxes that went into effect on January 1, 2003 for the purpose of building and operating a conference center in the Town. However, the conference center taxes were rescinded as of January 1, 2006 with additional growth in the fund balance due entirely to earnings on investments. The balance in this fund will not be spent until there is an election concerning its use. The Vail Reinvestment Authority was added in 2004 to administer an urban renewal authority established in the LionsHead area of the town. B5 6 -1 -11 MAJOR FUND BALANCES $25,000 $20,000 y $15,000 M y 7 $10,000 H $5,000 $- 2004 2005 2006 2007 2008 1 0General ❑ Capital Projects ❑ Real Estate Transfer Tax ❑ Conference Center ❑AII Other Financial Analysis of the Town's Funds (continued) Proprietary Funds: The Town's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets for the Heavy Equipment Fund and the Dispatch Services Fund at the end of the year were $2,006,759 and $896,585, respectively. The Health Insurance Fund net assets were $1,339,461, all of which are restricted for the Town's self- funded health insurance program. Budget Variances in the General Fund: General Fund revenue was higher than the amended budget by $884,840 or 3 %, including: Construction Fees up $371,444; Franchise fess up $157,665; Ski Area Lift Ticket Admissions Tax up $153,851 and Rents up $152,561. These revenue items were favorable mainly due to conservative budgeting. Expenditures were below budget by $545,635 or 2 %. The majority of the favorable spending variance was primarily due to conservative budgeting and expense savings among several departments. Capital Assets: The Town's government -wide capital assets, net of accumulated depreciation, increased $2,454,773. Capital additions included streetscape improvements, the purchase of eight hybrid buses, the buy -down of employee housing units and various other projects. Additional information as well as a detailed classification of the Town's net capital assets can be found in the Notes to the Financial Statements on pages D19 through D20 of this report. Long -term Debt: As of the end of the current fiscal year, the Town had $8,325,000 in sales tax revenue bonds outstanding, of which $1,980,000 of bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation totaled $21,810,000 of which $550,000 is due within one year. Additional information regarding the Town's debt can be found on pages D21 through D28. Sales Tax: During 2008, the Town had a 4% general sales tax to support governmental operations, including capital expenditures. The following chart shows changes in the general sales tax for the past five years. 136 6 -1 -12 TOWN OF VAIL GENERAL SALES TAX 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2004 2005 2006 2007 2008 Next Year's Budget and Rates: The Town's General Fund balance at the end of the current fiscal year was $23,002,886 representing 68% of annual revenue. The Town's 2009 budget anticipates adding $37,563 to this fund balance in 2009. Request for information This financial report is designed to provide a general overview of the Town's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report should be addressed to the Town of Vail, Finance Director, 75 S. Frontage Road, Vail, CO 81657. 137 6 -1 -13 GOVERNMENT -WIDE FINANCIAL STATEMENTS 6 -1 -14 Town of Vail, Colorado Statement of Net Assets December 31, 2008 Governmental Business -type Activities Activities Total Assets: Equity in pooled cash and investments 62,508,042 1,068,308 63,576,350 Unrestricted cash and investments 2,279,714 907,371 3,187,085 Cash - restricted 682,665 792,010 1,474,675 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 4,469,405 - 4,469,405 Other taxes 3,972,410 - 3,972,410 Other governments 282,970 7,501 290,471 Employees 106,059 - 106,059 Other 958,164 12,279 970,443 1 nventory 278,142 - 278,142 Prepaid expenses 247,242 29,332 276,574 Interest receivable 124,968 - 124,968 Loans receivable: Collectible within one year 5,000 - 5,000 Collectible in more than one year 1,920,000 - 1,920,000 Bond issue costs, net of accumulated amortization 169,776 505,024 674,800 Deferred debt refunding costs 104,460 - 104,460 Property, plant, and equipment, net of accumulated depreciation 93,425,956 18,242,427 111,668,383 Total Assets 171,534,973 21,564,252 193,099,225 Liabilities: Accounts payable 3,963,765 71,421 4,035,186 Due to other governments 3,430 - 3,430 Retainage payable 320,932 - 320,932 Accrued salaries and wages 751,782 89,031 840,813 Interest payable 6,576 175,669 182,245 Deferred property taxes 4,469,405 - 4,469,405 Other deferred revenue 456,327 243,026 699,353 Deposits payable 577,622 22,750 600,372 Debt issuance premium 203,221 - 203,221 Compensated absences: Due within one year 473,842 26,304 500,146 Due in more than one year 755,762 39,455 795,217 Bonds payable: Due within one year 1,980,000 550,000 2,530,000 Due in more than one year 6,345,000 19,360,000 25,705,000 Notes payable - 1,900,000 1,900,000 Total Liabilities 20,307,664 22,477,656 42,785,320 Net Assets: Invested in capital assets, net of related debt 85,100,956 (2,667,573) 82,433,383 Restricted for: Debt service 174,334 - 174,334 Emergencies 1,783,000 - 1,783,000 Unrestricted 64,169,019 1,754,169 65,923,188 Total Net Assets 151,227,309 (913,404) 150,313,905 The accompanying notes are an integral part of these financial statements. 6 -IC15 Town of Vail, Colorado Statement of Activities For the Year Ended December 31, 2008 Net (Expense) Revenue and Program Revenues Changes in Net Assets Operating Capital Charges for Grants and Grants and Governmental Business -type Expenses Services Contributions Contributions Activities Activities Total Functions /Programs: Governmental Activities: General government 8,039,678 5,857,528 - (2,182,150) (2,182,150) Public safety 8,272,889 530,817 1,268 - (7,740,804) (7,740,804) Public works and transportation 20,718,192 4,931,513 1,613,080 2,143,637 (12,029,962) (12,029,962) Culture and recreation 5,885,254 140,476 209,862 39,102 (5,495,814) (5,495,814) Economic development 3,301,533 312,839 29,934 - (2,958,760) (2,958,760) Interest on long -term debt 435,170 (435,170) (435,170) Total Governmental Activities 46,652,716 11,773,173 1,854,144 2,182,739 (30,842,660) (30,842,660) Business -type activities: Dispatch services 2,284,357 1,583,603 607,183 - (93,571) (93,571) Housing 2,497,680 2,862,789 - 365,109 365,109 Total Business -type Activities 4,782,037 4,446,392 607,183 271,538 271,538 Total 51,434,753 16,219,565 2,461,327 2,182,739 (30,842,660) 271,538 (30,571,122) General Revenues: Taxes: Sales taxes 21, 063, 050 21, 063, 050 Real estate transfer taxes 9,091,917 9,091,917 Lodging taxes 2,179,300 2,179,300 Property and specific ownership taxes 5,691,365 5,691,365 Ski area lift ticket admissions tax 3,277,703 3,277,703 Franchise taxes 1,052,665 1,052,665 Cigarette taxes 80,913 80,913 Investment earnings 1,530,904 39,924 1,570,828 Gain on sale of capital assets 78,649 78,649 Miscellaneous 115,723 9,849 125,572 Transfers 75,000 (75,000) - Total General Revenues and Transfers 44,237,189 (25,227) 44,211,962 Change in Net Assets 13,394,529 246,311 13,640,840 Net Assets - January 1 137,832,780 (1,159,715) 136,673,065 Net Assets - December 31 151,227,309 (913,404) 150,313,905 The accompanying notes are an integral part of these financial statements. C2 6 -1 -16 FUND FINANCIAL STATEMENTS 6 -1 -17 Town of Vail, Colorado Balance Sheets Governmental Funds December 31, 2008 Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds Assets: Equity in pooled cash and investments 24,362,122 6,400,243 18,613,490 9,264,476 82,593 - - 228,650 58,951,574 Cash and cash equivalents- Unrestricted 14,185 - - - - 931,978 1,333,551 - 2,279,714 Receivables, net of allowance for uncollectible accounts: Property taxes assessed 4,469,405 - - - - - - - 4,469,405 Othertaxes 735,032 2,749,497 103,002 - - 384,879 - - 3,972,410 Other governments - 282,970 - - - - - - 282,970 Employees 106,059 - - - - - - - 106,059 Other 187,839 752,033 - - 1,042 4,226 - - 945,140 Loans receivable - 1,925,000 - - - - - - 1,925,000 Prepaid expenses 238,557 7,500 246,057 Total Assets 30,113,199 12,109,743 18,716,492 9,264,476 83,635 1,328,583 1,333,551 228,650 73,178,329 Liabilities and Fund Equity: Liabilities: Accounts payable 1,178,449 784,617 1,230,840 - - 301,995 - 54,316 3,550,217 Due to other governments 3,430 - - - - - - - 3,430 Retainage payable - 140,283 180,649 - - - - - 320,932 Accrued payroll and related liabilities 700,776 2,277 16,737 - - - - - 719,790 Deferred revenue 180,631 275,696 - - - - - - 456,327 Deferred property taxes not collectible until subsequent year 4,469,405 - - - - - - - 4,469,405 Deposits payable 577,622 577,622 Total Liabilities 7,110,313 1,202,873 1,428,226 301,995 54,316 10,097,723 Fund Balances: Reserved for Prepaid expenses 238,557 - - - - 7,500 - - 246,057 Loans receivable - 1,925,000 - - - - - - 1,925,000 Retirement of bonded debt - - - - - - - 174,334 174,334 Emergencies 1,700,000 - - - - 83,000 - - 1,783,000 Unreserved: Designated for housing loan program 200,000 - - - - - - - 200,000 Designated for police seizures 93,819 - - - - - - - 93,819 Designated for subsequent years'. expenditures - 3,394,180 - - - - - - 3,394,180 Undesignated 20,770,510 5,587,690 17,288,266 9,264,476 83,635 936,088 1,333,551 55,264,216 Total Fund Balances 23002,886 10,906,870 17,288,266 9,264,476 83,635 1,026,588 1,333,551 174,334 63,080,606 Total Liabilities and Fund Balances 30,113,199 12,109,743 18,716,492 9,264,476 83,635 1,328,583 1,333,551 228,650 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 90,360,981 Other long -term assets are not available for current period expenditures and, therefore, are not reported in the funds. 1,081,871 Internal service funds are used by management to charge the costs of heavy equipment and health insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. 6,411,195 Long -term liabilities, including bonds payable, interest payable, and compensated absences, are not due and payable in the current period and, therefore, are not reported in the funds. (9,707,344) Net Assets of Governmental Activities 151,227,309 The accompanying notes are an integral part of these financial statements C3 6 -1 -18 Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2008 Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds Revenues: Taxes 20,302,534 8,780,403 9,091,917 - - 2,179,300 1,376,171 - 41,730,325 Permits and licenses 3,903,026 - - - 312,839 - - - 4,215,865 Intergovernmental revenue 1,706,197 869,177 26,914 - - - - - 2,602,288 Charges for services 7,163,907 200,359 176,832 - - - - - 7,541,098 Investment income 571,072 211,065 346,452 218,193 3,819 8,877 15,062 50,830 1,425,370 Miscellaneous 163,025 1,664,280 147,563 29,935 2 Total Revenues 33,809,761 11,725,284 9,789,678 218,193 316,658 2,218,112 1,391,233 50,830 59,519,749 Expenditures: General government 7,715,791 - - - 15,642 - - 2,500 7,733,933 Public safety 7,624,590 - 209,750 - - - - - 7,834,340 Public works and transportation 11,779,063 11,416,938 - - - - - - 23,196,001 Culture and recreation 2,531,148 - 4,060,935 - - - - - 6,592,083 Economic development - - - - 280,000 2,748,260 371,787 - 3,400,047 Debt service: Principal - - - - - - - 1,890,000 1,890,000 Interest 432,395 432,395 Total Expenditures 29,650,592 11,416,938 4,270,685 295,642 2,748,260 371,787 2,324,895 51 Excess (Deficiency) of Revenues Over Expenditures 4,159,169 308,346 5,518,993 218,193 21,016 (530,148) 1,019,446 (2,274,065) 8,440,950 Other Financing Sources (Uses): Sale of assets - 178,066 - - - - - - 178,066 Debt proceeds, net - - - - - - - (8,981) (8,981) Transfers in - 516,000 - - - 550,000 - 2,204,670 3,270,670 Transfers (out) (991,000) (2,204,670) (3,195,670) Total Other Financing Sources (Uses) (991,000) (1,510,604) 550,000 2,195,689 244,085 Net Change In Fund Balances 3,168,169 (1,202,258) 5,518,993 218,193 21,016 19,852 1,019,446 (78,376) 8,685,035 Fund Balances - January 1 19,834,717 12,109,128 11,769,273 9,046,283 62,619 1,006,736 314,105 252,710 54,395,571 Fund Balances - December 31 23,002,886 10,906,870 17,288,266 9,264,476 83,635 1,026,588 1,333,551 174,334 63,080,606 Net Change in Fund Balances of Governmental Funds 8,685,035 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expenses. This is the amount by which capital outlay exceeded depreciation during the year. 2,338,744 In the Statement of Activities, only the gain or loss on sale and disposal of assets is reported, whereas, in the governmental funds, only the proceeds which increase current available resources is reported. This amount is the net book value of disposed assets. (175,819) Repayment of bond and lease principal are expenditures in the governmental funds, but the repayment reduces long -term liabilities in the Statement of Net Assets. This is the amount of principal repayments. 1,890,000 Internal service funds are used by management to charge the cost of heavy equipment and health insurance to individual funds. This is the amount of internal service fund change in net assets for the year. 791,054 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 59,599 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (194,084) Change in Net Assets of Governmental Activities 13,394,529 The accompanying notes are an integral part of these financial statements C4 6 -1 -19 Town of Vail, Colorado Proprietary Funds Statement of Net Assets December 31, 2008 Business -type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 1,068,308 1,068,308 3,556,468 Cash and cash equivalents - Unrestricted 907,371 - 907,371 - Accounts receivable , net of allowance for uncollectibles 12,279 7,501 19,780 13,024 Inventory - - - 278,142 Prepaid expenses 29,332 29,332 1,185 Total Current Assets 948,982 1,075,809 2,024,791 3,848,819 Non - current Assets: Cash and cash equivalents - Restricted 792,010 792,010 - Bond issue costs, net of accumulated amortization 505,024 - 505,024 - Property, plant, and equipment, net of accumulated depreciation 17,143,169 1,099,258 18,242,427 3,064,975 Total Non - current Assets 18,440,203 1,099,258 19,539,461 3,064,975 Total Assets 19,389,185 2,175,067 21,564,252 6,913,794 Liabilities: Current Liabilities: Accounts payable 46,987 24,434 71,421 413,548 Tenant security deposits 22,750 - 22,750 - Deferred revenue 243,026 243,026 Accrued interest payable 175,669 - 175,669 - Accrued salaries and wages - 89,031 89,031 31,992 Current portion of bonds payable 550,000 - 550,000 - Current portion of compensated absences - 26,304 26,304 22,824 Total Current Liabilities 1,038,432 139,769 1,178,201 468,364 Non - current Liabilities: Bonds payable, net of current portion 19,360,000 - 19,360,000 - Notes payable 1,900,000 - 1,900,000 - Compensated absences, net of current portion - 39,455 39,455 34,235 Total Non - current Liabilities 21,260,000 39,455 21,299,455 34,235 Total Liabilities 22,298,432 179,224 22,477,656 502,599 Net Assets (Deficit): Invested in capital assets, net of related debt (3,766,831) 1,099,258 (2,667,573) 3,064,975 Unrestricted 857,584 896,585 1,754,169 3,346,220 Total Net Assets (Deficit) (2,909,247) 1,995,843 (913,404) 6,411,195 The accompanying notes are an integral part of these financial statements C5 6 -1 -20 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2008 Business -type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Operating Revenues: Charges for services - Internal 533,164 533,164 5,461,787 Charges for services - External - 1,050,439 1,050,439 286,058 Rent 2,830,033 - 2,830,033 - Laundry room lease 32,756 32,756 - Insurance reimbursements - - - 145,681 Other 2,348 7,500 9,848 77,613 Total Operating Revenues 2,865,137 1,591,103 4,456,240 5,971,139 Operating Expenses: Operations 1,400,098 2,058,224 3,458,322 2,329,815 Health claims and premiums - - - 2,478,828 Depreciation - 226,133 226,133 569,560 Total Operating Expenses 1,400,098 2,284,357 3,684,455 5,378,203 Operating Income (Loss) 1,465,039 (693,254) 771,785 592,936 Non - Operating Revenues (Expenses): Intergovernmental revenues - 607,183 607,183 - Gain (loss) on disposal of assets - - - 76,402 Investment income 21,161 18,763 39,924 77,035 Interest expense reimbursement - rate cap agreement (769,652) - (769,652) - Interest expense (274,059) (274,059) Financing fees - Amortization of bond issue costs (53,871) - (53,871) Total Non - Operating Revenues (Expenses) (1,076,421) 625,946 (450,475) 153,437 Income (Loss) Before Capital Contributions 388 (67,308) 321,310 746,373 Transfers, Net - (75,000) (75,000) - Capital Contributions, Net - 44,681 Change in Net Assets 388 (142,308) 246,310 791,054 Net Assets (Deficit) - January 1 (3,297,865) 2,138,151 (1,159,714) 5,620,141 Net Assets (Deficit) - December 31 (2,909,247) 1,995,843 (913,404) 6,411,195 The accompanying notes are an integral part of these financial statements C6 6 -1 -21 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2008 Business -type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Cash Flows From Operating Activities: Cash received from other funds - 525,664 525,664 5,461,787 Cash received from tenants for rent 2,883,418 - 2,883,418 - Cash received from (refunded to) tenants for security deposits, net 4,300 - 4,300 - Othercashreceipts 35,104 1,057,939 1,093,043 516,924 Cash paid for goods and services (948,468) (445,292) (1,393,760) (3,878,279) Cash paid to employees - (1,532,168) (1,532,168) (892,769) Net Cash Provided (Used) by Operating Activities 1,974,354 (393,857) 1,580,497 1,207,663 Cash Flows From Non - Capital Financing Activities: Transfer (to) other funds - (75,000) (75,000) - Cash received from operating grants 607,183 607,183 Net Cash Provided by Non - Capital Financing Activities - 532,183 532,183 - Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets - - 77,964 Principal repaid on bonds and notes (155,000) (155,000) - Cash drawn on line of credit 651,984 651,984 Repayments of amounts drawn on line of credit (651,984) (651,984) Interest paid (778,483) (778,483) Financing fees paid (282,731) (282,731) Acquisition and construction of capital assets (50,121) (50,121) (640,907) Net Cash (Used) by Capital and Related Financing Activities (1,216,214) (50,121) (1,266,335) (562,943) Cash Flows From Investing Activities: Interest on investments 21,161 18,763 39,924 77,035 Purchase of fixed assets - - - - Net Cash Provided by Investing Activities 21,161 18,763 39,924 77,035 Net Increase (Decrease) in Cash and Cash Equivalents 779,301 106,968 886,269 721,755 Cash and Cash Equivalents - Beginning 920,080 961,340 1,881,420 2,834,713 Cash and Cash Equivalents - Ending 1,699,381 1,068,308 2,767,689 3,556,468 Cash and Cash Equivalents - End of Period is Comprised of: Equity in pooled cash and investments - 1,068,308 1,068,308 3,556,468 Cash and cash equivalents - Unrestricted 907,371 - 907,371 - Cash and cash equivalents - Restricted 792,010 792,010 - Total -Cash and Cash Equivalents 1,699,381 1,068,308 2,767,689 3,556,468 Reconciliation of Operating (Loss) to Net Cash Provided by Operating Activities: Operating Income /(Loss) 1,465,039 (693,254) 771,785 592,936 Adjustments: Depreciation 522,614 226,133 748,747 569,560 (Increase) decrease in accounts receivable 6,860 (7,501) (641) 7,572 (Increase) decrease in inventory - - 15,142 (Increase) decrease in prepaid expenses 7,783 - 7,783 15,991 Increase (decrease) in accounts payable (77,566) 14,476 (63,090) (13,415) Increase (decrease) in other liabilities 49,624 - 49,624 - Increase (decreases) in accrued wages and benefits - 66,289 66,289 19,877 Total Adjustments 509,315 299,397 808,712 614,727 Net Cash Provided (Used) by Operating Activities 1,974,354 (393,857) 1,580,497 1,207,663 Schedule of Non -Cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund - - 44,681 Total - Non -Cash Investing, Capital and Financing Activities: - - - 44,681 The accompanying notes are an integral part of these financial statements C7 6 -1 -22 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Assets December 31, 2008 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 30,057,847 5,130,875 Loans to participants 380,926 - Total Assets 30,438,773 5,130,875 Net Assets: Held in trust for pension benefits and other purposes 30,438,773 5,130,875 Total Net Assets 30,438,773 5,130,875 The accompanying notes are an integral part of these financial statements C8 6 -1 -23 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Assets For the Year Ended December 31, 2008 Deferred Pension Compensation Trust Plan Additions: Contributions 2,817,726 809,567 Investment Income / (Loss) (11,325,863) (1,830,485) Total Additions (8,508,137) (1,020,918) Deductions: Professional fees 3,743 4,897 Benefits paid 2,589,600 205,266 Total Deductions 2,593,343 210,163 Change in Net Assets (11,101,480) (1,231,081) Net Assets - January 1 41,540,253 6,361,956 Net Assets - December 31 30,438,773 5,130,875 The accompanying notes are an integral part of these financial statements C9 6 -1 -24 NOTES TO THE FINANCIAL STATEMENTS 6 -1 -25 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 I. Summary of Significant Accounting Policies The Town of Vail, Colorado (the "Town ") was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under a Council- Manager form of government. The Town's major operations include public safety, public works and transportation, culture and recreation, economic development, administration (general government), and housing. The Town's financial statements are prepared in accordance with generally accepted accounting principles ( "GAAP "). The Governmental Accounting Standards Board ( "GASB ") is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). Governments are also required to follow the pronouncements of the Financial Accounting Standards Board ( "FASB ") issued through November 30, 1989, when applicable, that do not conflict with or contradict GASB pronouncements. The more significant accounting policies established by GAAP used by the Town are discussed below. A. Reporting Entity The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Town is financially accountable. The Town is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. Consideration is also given to other organizations which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. The accompanying financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town's operations. There are three blended component units reported in the Town's financial statements: Vail Local Marketing District (the "District "), Timber Ridge Affordable Housing Corporation (the "Corporation ") and Vail Reinvestment Authority (the "Authority "). The financial statements of theses entities can be obtained from the Town's administrative offices. A fourth blended component unit, the Town of Vail General Improvement District No. 1, is a dormant entity and, therefore, has no financial statements to report. 1. Vail Local Marketing District The District was authorized on November 2, 1999 by a general election that established a 1.4% tax on lodging within the Town's boundaries, beginning January 1, 2000. Proceeds from the tax are to be used for organization, management, promotion, and marketing of public events, for business recruitment, and for tourism promotion. Town Council members also act as the District's Board of Directors. The District is reported as a special revenue fund. D1 6 -1 -26 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation The Corporation was incorporated on July 9, 2003 as a Colorado non - profit corporation to provide affordable housing for persons employed in the Town or Eagle County, Colorado. The Corporation owns and operates, exclusively on behalf of and for the benefit of the Town, a 198 -unit rental housing project (the "Project ") located in the Town. The formation of the Corporation was approved by the Town, and its operations are governed by a Board of Directors comprised, as of March 2005, of members of the Town's management team. Previously, the Board was comprised solely of members of the Town Council. Upon dissolution of the Corporation and retirement of all liabilities, all property of the Corporation is to be transferred to the Town. The acquisition of the Project was financed through the issuance of revenue bonds and a note payable to the Town. While the Town is not legally obligated to pay the indebtedness of the Corporation, the Town has agreed to consider providing funds, if needed, to the Corporation to make the scheduled debt service payments of the Corporation. The Town has a right to obtain title to the Project at any time by defeasing all outstanding bonds of the Corporation. The Corporation is reported as an enterprise fund. The Corporation's total revenues exceeded expenditures by $388,618 for 2008. This helped to improve the Corporation's deficit net assets balance accumulated in the period from inception of operations, July 17, 2003 to December 31, 2008. The net asset deficit totals $2,909,247 as of December 31, 2008. Since the inception of operations, the Corporation has incurred mold remediation costs totaling $1,417,292, of which the majority of expenses were incurred prior to 2007. As of January, 2007, all 198 units at the Project had been renovated. In addition to limitations on the Corporation's revenue base, the Corporation has substantial long -term debt obligations. As detailed in Note IV.G.1., a significant portion of the Corporation's bonds currently bear a variable weekly interest rate. Short -term interest rates have fluctuated since the issuance of these bonds. The Corporation's Rate Protection Agreement outlined in Note IV. J. below, has limited the Corporation's effective interest rate on the 2003A Bonds to 5.5% per annum. While short -term interest rates have stabilized below the current rate cap threshold, any significant increase in rates could have an adverse impact on the Corporation's cash flow. During 2005 and 2006, the Corporation was advanced $700,000 and $200,000 respectively, by the Town. This additional funding helped improve the Corporation's year -end liquidity position, although current liabilities continue to exceed current assets. There have been no additional advances from the Town. D2 6 -1 -27 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation (continued) In 2007, the Board commissioned an engineering study and began a capital maintenance and replacement program to address the deteriorating condition of the property. The Replacement Reserve Fund is used to fund the program. The Board considers the above factors significant to its future operations. The Board and Town still intend to redevelop the property, with request for proposals under review as of April, 2009. The Board also projects that, under current master lease agreements, rental revenues will be sufficient to cover operating expenses, debt service and rate cap reserves for the next several years. 3. Vail Reinvestment Authority The Authority was created on November 4, 2003 pursuant to the Colorado Urban Renewal Law (C.R.S. 31 -25 -1) to oversee development and redevelopment of identified blighted areas within the Town. The Town Council approved the formation of the Authority at a public hearing, and filed applicable certification of compliance with the Division of Local Government. Its operations are governed by a Board of Commissioners comprised solely of members of the Town Council. The Authority is reported as a special revenue fund. 4. Town of Vail General Improvement District No. 1 On October 3, 2006, the Town Council accepted a petition requesting formation of the Town of Vail Public Improvement District No. 1. The District is a public, or quasi - municipal subdivision of the state of Colorado and a body corporate with the powers set forth in Part 6, Article 25, Title 31 of the Colorado Revised Statutes. The Town Council is the ex officio Board of Directors of the District. Services provided by the District include (a) programming, regulating, and generally administering public functions to be conducted on the public plaza which will be constructed as part of the Solaris redevelopment project and (b) maintaining the plaza to the extent that the Solaris Metropolitan District fails to do so. At a special election on November 7, 2006, the eligible electors of the District authorized imposition of a mill levy of not more than fifteen mills in any year for the purpose of funding the administration, operation, and maintenance of the District's facilities should the Solaris Metropolitan District fail to do so. As of December 31, 2008, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. D3 6 -1 -28 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) B. Government -wide and Fund Financial Statements The Town's basic financial statements include both government -wide (reporting the Town as a whole) and fund financial statements (reporting the Town's major funds). Government -wide financial statements report on information of all of the nonfiduciary activities of the Town and its component units. Both the government -wide and fund financial statements categorize primary activities as either governmental or business - type. The Town's public safety, public works and transportation, culture and recreation, economic development, and administration functions are classified as governmental activities. The Corporation and emergency dispatch services of the Town are classified as business -type activities. The government -wide Statement of Activities reports both the gross and net cost of each of the Town's governmental functions and business -type activities. The governmental functions are also supported by general government revenues (sales taxes, property and specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the governmental function or a business -type activity. Operating grants include operating- specific and discretionary (either operating or capital) grants while the capital grants column reflects capital- specific grants. The government -wide focus is on the sustainability of the Town as an entity and the change in the Town's net assets resulting from the current year's activities. C. Fund Financial Statements The financial transactions of the Town are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self - balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures /expenses. The fund focus is on current available resources and budget compliance. The Town reports the following major governmental funds: The General Fund is the Town's primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. The Capital Projects Fund accounts for a portion of the Town's sales tax and intergovernmental revenue which are restricted for the acquisitions of and improvements to the Town's governmental assets. The Real Estate Transfer Tax Fund is used to account for the collection of a real estate transfer tax which is specifically restricted for acquiring, maintaining, and improving real property for parks, recreation, open space and similar purposes. The Conference Center Fund was established to account for the collection of a sales tax and a public accommodations tax which were specifically restricted for the financing of the construction and operations of a conference center in the Town. D4 6 -1 -29 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements (continued) The conference center taxes were rescinded by election in November, 2005. A TABOR election is required to release conference center funds for any purpose. The Vail Marketing Fund accounts for the collection of business license fees which are specifically restricted for expenditures related to the marketing of the Town. The Vail Local Marketing District is used to account for the activities of the District. The Vail Reinvestment Authority is used to account for the activities of the Authority. The Town reports the following major proprietary or business -type funds: Timber Ridge Affordable Housing Corporation accounts for the activities of the Corporation. The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. Additionally, the Town reports the following fund types: Internal service funds account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. In addition, internal service funds are used to account for the health insurance plan provided to Town employees. Trust funds are used to account for the accumulation of resources for pension benefit payments to qualified Town employees and to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long -term resources (long -term economic focus). Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1. Long -term Economic Focus and Accrual Basis Both governmental and business -type activities in the government -wide financial statements and the proprietary and fiduciary fund financial statements use the long -term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. D5 6 -1 -30 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 2. Current Financial Focus and Modified Accrual Basis The governmental fund financial statements use the current financial focus and are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. "Available" means collectible within the current period or soon enough thereafter (60 days) to be used to pay liabilities of the current period. Expenditures are generally recognized when the related liability is incurred. The exception to this general rule is that principal and interest on general long -term debt and compensated absences are recorded only when payment is due. 3. Financial Statement Presentation Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the Town's enterprise funds are rents from individuals employed in the Town and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. E. Financial Statement Accounts 1. Equity in Pooled Cash and Investments The Town has a policy of central cash management for all funds except the Pension Trust Fund and the Deferred Compensation Plan Fund. In addition, the component units do not participate in the Town's central cash management. Equity in pooled cash and investments include demand deposits, short -term investments with original maturities of three months or less from the date of acquisition, and long -term investments in U.S. government obligations. Investments are stated at fair market value. D6 6 -1 -31 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 2. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. Restricted cash and cash equivalents represent amounts restricted by bond indentures and other binding commitments. 3. Receivables Receivables are reported net of an allowance for uncollectible accounts. 4. Property Taxes Property taxes are assessed in one year as a lien on the property, but not collected by the governmental unit until the subsequent year. In accordance with GAAP, the assessed but uncollected property taxes have been recorded as a receivable and as deferred revenue. 5. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Inventory in the Heavy Equipment Fund consists of expendable supplies held for consumption. 6. Prepaid Expenses Payments made to vendors for services that will benefit periods beyond December 31, 2008 are recorded as prepaid expenses. 7. Bond Issuance Costs Issuance costs for bonds payable are deferred and amortized over the term of the loan using the straight -line method for governmental activities. The Corporation uses the bonds outstanding method, which approximates the effective interest method, to amortize these costs. 8. Interfund Receivables and Payables Balances at year -end between funds are reported as "due to / from other funds" in the fund financial statements. Any residual balances not eliminated between the governmental and business -type activities are reported as "internal balances" in the government -wide financial statements. D7 6 -1 -32 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 9. Capital Assets Capital assets, which include land, buildings, improvements, equipment, vehicles and infrastructure assets, are reported in the applicable governmental or business -type activity columns in the government -wide financial statements. Capital assets are defined by the Town as assets with an initial cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at cost where historical records are available and at an estimated historical cost where no historical record exists. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Capital outlay for projects is capitalized as projects are constructed. Interest incurred during the construction phase is capitalized as part of the value of the assets. Capital assets (excluding land) are depreciated using the straight -line method. 10. Bond Premiums and Discounts Bonds payable are reported net of the applicable bond premium or discount. No amortization was taken on these premiums or discounts in the first year. These premiums and discounts are amortized over the life of the applicable bonds using the bond outstanding method. 11. Deferred Revenue For governmental funds, deferred revenues arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. For proprietary funds, deferred revenues arise when potential revenue is unearned. In subsequent periods, when revenue recognition criteria are met, or when the Town has legal claim to the resources, the liability for deferred revenue is removed and revenue is recognized. 12. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government -wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. D8 6 -1 -33 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 12. Compensated Absences (continued) In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for non - vesting accumulating rights to receive sick pay benefits. 13. Fund Equity Governments report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. At December 31, 2008, the Town reported $1,957,334 of restricted net assets which was comprised of $174,334 restricted for debt service payments and $1,783,000 restricted for emergencies (as subsequently explained in Notes III.E. and F.). Designations of fund balance represent tentative management plans that are subject to change. Designations of fund balance are reported only on fund financials and not on the government -wide financial statements. 14. Interfund Transactions Quasi - external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions, except quasi - external transactions and reimbursements, are reported as transfers. F. Significant Accounting Policies 1. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 2. Proprietary Funds As required by GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, the Town has elected to follow for its proprietary funds, all (1) GASB pronouncements and (2) FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins issued on or before November 30, 1989, except those that conflict with a GASB pronouncement. D9 6 -1 -34 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) I. Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies 3. Credit Risk The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. 4. Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. II. Reconciliation of Government -wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets The governmental fund Balance Sheet includes reconciliation between the fund balance of total governmental funds and net assets of governmental activities as reported in the government -wide Statement of Net Assets. One element of that reconciliation explains "Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds ". This $90,360,981 difference is related to property, plant and equipment of $213,253,126 less accumulated depreciation of $122,892,145. Another element of that reconciliation explains "Other long -term assets are not available for current period expenditures and therefore are not reported in the funds ". This $1,081,871 difference is bond issue costs of $491,130, less accumulated amortization of $321,352, pension forfeitures of $682,665, deferred debt refunding cost of $104,460 and interest receivable of $124,968. Additionally, the reconciliation states that long -term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. This $9,707,344 difference is related to bonds and notes payable of $8,325,000, accrued compensated absences of $1,172,545, premium on issued debt of $203,221 and interest payable of $6,578. B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government -wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes reconciliation between net change in fund balances of governmental funds and changes in net assets of governmental activities as reported in the government -wide Statement of Activities. One element of that reconciliation explains "Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense." The details of this $2,338,746 difference are comprised of capital outlay of $11,550,969, less depreciation expense of $9,212,223. D10 6 -1 -35 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) III. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town's Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund and the Dispatch Services Fund. The budgets for these funds have been adopted on a non -GAAP budget and are reconciled to GAAP below: Heavy Dispatch Equipment Services Fund Fund Change in Net Assets - Budget Basis $ 333,220 $ 43,978 add /(less): Contribution from Capital Projects Fund 44,681 - Change in compensated absences (5,975) (10,274) Capitalized assets 640,907 50,121 Depreciation (569,560) (226,133) Net book value of disposed assets (1,562) - Change in Net Assets - GAAP Basis $ 441,711 $ (142,308) Annual appropriations are adopted for all funds. Expenditures may not legally exceed appropriations at the fund level. All appropriations lapse at year -end. The Town followed these procedures in preparing, approving, and enacting its budget for 2008. (1) For the 2008 budget year, prior to August 25, 2007, the County Assessor sent the Town a certified assessed valuation of all taxable property within the Town's boundaries. (2) Prior to the end of the 2007 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2007, the Town computed and certified to the County Commissioners a levy rate that derived the necessary property taxes as computed in the proposed budget. (4) After a required publication of "Notice of Proposed Budget ", the Town adopted the proposed budget and an appropriation ordinance which legally appropriated expenditures for the upcoming year. D11 6 -1 -36 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) (5) After adoption of the budget ordinance, the Town may make the following changes: a) transfer appropriated money between funds; b) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; c) approve emergency appropriations; and d) reduce appropriations for which originally estimated revenues are insufficient. Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2007 were collected in 2008 and taxes certified in 2008 will be collected in 2009. Taxes are due on January 1 st in the year of collection; however, they may be paid in either one installment (no later than April 30th) or two equal installments (not later than February 28th and June 15th) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1%) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16th. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. B. Budgetary Information — Vail Local Marketing District The District's budget timetable varies from the Town's. The District followed these procedures in preparing, approving, and enacting its budget for 2008. (1) On or before September 30, 2007, the District must submit to the Board a recommended budget that details the revenues necessary to meet the District's operating requirements. This was done on September 2, 2007. (2) After appropriate public notice and a required public hearing, the Board must adopt the proposed budget and an appropriating resolution that legally appropriated expenditures for the upcoming year on or before December 5, 2007. The Board adopted the 2008 budget on October 2, 2007. (3) After adoption of the initial budget resolution, the District may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. C. Deficit Net Assets - Timber Ridge Affordable Housing Corporation The Corporation had a deficit of net assets at December 31, 2008 of $2,909,247. D12 6 -1 -37 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) III. Stewardship, Compliance, and Accountability (continued) D. Compliance with Trust Indentures - Timber Ridge Affordable Housing Corporation The bond indenture for the Corporation's Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "2003A Bonds "), establishes initial funding of a bond reserve fund at $317,094 and required additional funding during 2004, but permits the trustee to release moneys in the bond reserve fund to the Corporation to pay operating and maintenance expenses of the Project. Due to the Trustee's release of funds pursuant to these provisions in 2003 and 2004 (without reimbursement by the Corporation), balances at December 31, 2008 and 2007 in the Bond Reserve Fund for the 2003A Bonds were $380,077 and $575,666, respectively, less than the bond reserve requirement of $595,157. As described in Note IV.J., the Reimbursement Agreement with U.S. Bank requires the Corporation to fund a Replacement Reserve in 2003 and annually thereafter. For 2008 and 2007, the minimum funding required for the Replacement Reserve was met by the Corporation. The 2003A Indenture and 2003B Indenture each impose financial ratios relating to debt service coverage. At December 31, 2008 and 2007, the Corporation met the minimum required debt service coverage ratios under the terms of the 2003A Indenture or the 2003B indenture. E. TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights ( "TABOR "). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple - fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, or salary or fringe benefit increases. The reserve is calculated at 3% of fiscal year spending for fiscal years ending after December 31, 1995. Fiscal year spending excludes bonded debt service and enterprise spending. The Town has reserved a portion of the December 31, 2008 fund balance in the General Fund for this purpose in the amount of $1,700,000 which is the approximate required reserve. D13 6 -1 -38 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) III. Stewardship, Compliance, and Accountability (continued) E. TABOR Amendment (continued) The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town's electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are: • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town debt; • No increase or imposition of a new real estate transfer tax; and, • All election requirements remain in effect. The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. F. TABOR Amendment — Vail Local Marketing District As required by TABOR, the District has reserved $83,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2008. The ballot question approved by voters on November 2, 1999, which established the 1.4% tax on lodging within the Town's boundaries also authorized the District to collect and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The District's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions will require judicial interpretation. D14 6 -1 -39 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds A. Cash and Investments Pursuant to its charter, the Town has adopted, by ordinance, an investment policy governing the types of institutions and investments with which it may deposit funds and transact business. Under this policy, the Town may invest in federally insured banks, debt obligations of the U.S. Government, its agencies and instrumentalities, governmental mutual funds and pools including 2a7 -like pools, and repurchase agreements subject to policy requirements. The Town also accounts for the operations of the employees' pension plans that are administered by select employees acting as trustees who are governed by a trust agreement. The trust agreement gives the trustees considerable latitude with investment alternatives. As a result, all pension investments are considered legal under the trust agreement. The Town's deposits and certificates of deposit are entirely covered by federal depository insurance (FDIC) or by collateral held under Colorado Public Deposit Protection Act ( "PDPA "). The FDIC insures the first $100,000 of the Town's deposits at each financial institution. Deposit balances over $100,000 are collateralized as required by PDPA. As of year end, the bank balance of the Town's deposits was $4,273,293. At year end, the Town had the following investments and maturities: Carrying Type Rating Maturities Value Deposits: Cash on hand 14,185 Demand deposits 9,256,206 Certificates of deposit <1 year 1,276,367 Certificates of deposit <5 years 585,820 Total deposits 11,132,578 Investments: US Agencies - FHLMC, FHLB, FNMA, FFC AAA <5 years 3,750,537 Mortgage pools AAA N/A 1,914,115 Colotrust AAAm N/A 50,758,216 Pension and Section 457 investments N/A N/A 35,871,387 Total investments 92,294,255 Total deposits and investments Reconciliation to Statement of Net Assets: Equity in pooled cash and investments 63,576,351 Cash and cash equivalents - Unrestricted 3,187,085 Cash and cash equivalents - Restricted 1,474,675 Fiduciary Funds 35,188,722 Total 103,426,833 D15 6 -1 -40 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) Pools. The Town has invested in the Colorado Government Liquid Asset Trust ( "Colotrust "), which is an investment vehicle established for local government entities in Colorado to pool surplus funds. They operate similarly to a money market fund and each share is equal in value to $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor's. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk. The Town's general investment policy is to apply the prudent - person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. Concentration of Credit Risk. The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments are as follows at year end: Investment Type Rating Percentage Colotrust AAAm 80% Investments in the Deferred Compensation Plan and the Pension Trust Funds are held by trustees and are not categorized because they are not evidenced by specific securities that exist in physical or book form. D16 6 -1 -41 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) B. Receivables Receivables as of year -end for the Town's funds, including applicable allowances for uncollectible accounts, are as follows: Capital Real Estate Vail Vail Local General Projects Transfer Marketing Marketing Fund Fund Tax Fund Fund District Receivables: Property taxes $ 4,469,405 - - - Other taxes 735,032 2,749,497 103,002 384,879 Other governments - 282,970 - - Employees 106,059 - - Other 188,839 752,033 - 1,042 4,226 Gross Receivables 5,499,335 3,784,500 103,002 1,042 389,105 Less: Allowance for uncollectibles (1,000) - - - - Net Receivables $ 5,498,335 3,784,500 103,002 1,042 389,105 Vail Heavy Rein- Equip- Dispatch Health Timber vestment ment Services Insurance Ridge Authority Fund Fund Fund Total Receivables: Property taxes $ 4,469,405 Othertaxes 3,972,410 Other governments 7,501 290,471 Employees - - - 106,059 Other 12,279 10,566 2,458 971,443 Gross Receivables 12,279 10,566 7,501 2,458 9,809,788 Less: Allowance for uncollectibles - - - - (1,000) Net Receivables $ 12,279 10,566 7,501 2,458 9,808,788 D17 6 -1 -42 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) B. Receivables (continued) Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Total deferred revenue for governmental activities totaled $4,925,732 and is comprised of the following: General Capital Project Property taxes assessed but not Fund Fund collectible until 2008: $ 4,469,405 Other deferred revenues: Business licenses 61,962 Library grants 103,884 Police programs 14,785 Construction projects 275,696 $ 4,650,036 $ 275,696 Deferred revenue for business -type activities in the amount of $243,026 is related to prepaid rent. Deferred revenue for construction projects relate to $191,396 of funds collected from Holy Cross Energy for the community enhancement fund which is used to place utilities underground. The other $84,300 was collected from a developer, for road improvements. The Town has begun construction on both projects during 2009. The revenue will be recognized in the year the money is spent. C. Capital Assets The Governmental Accounting Standards Board Statement No. 34 (GASB -34) requires the capitalization of general infrastructure both prospectively and retroactively. Retroactive application requires governments to capitalize major infrastructure assets they acquired in the past 25 years or during fiscal years ending after June 30, 1980. Based on the Town's annual revenues, implementation was required by December 31, 2007. The Town is in compliance with GASB 34's infrastructure reporting requirements. During 2007, the Town added fully depreciated general infrastructure assets with an aggregate historical cost of $54,016,471 to the governmental activities Statement of Net Assets, in compliance with the infrastructure reporting requirements. Also during 2007, the Town increased its capital assets to reflect the inclusion of certain items previously omitted from the Town's capital asset listing. D18 6 -1 -43 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Capital asset activity for the year ended December 31, 2008 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 28, 222, 590 - - 28,222, 590 Total Capital Assets, Not Being Depreciated 28,222,590 - - 28,222,590 Capital Assets, Being Depreciated: Buildings and improvements 70,477,524 1,556,385 (178,045) 71,855,864 Infrastructure and improvements 89,725,988 3,949,963 - 93,675,951 Equipment and vehicles 22,312,300 6,730,208 (423,303) 28,619,205 Total Capital Assets Being Depreciated 182,515,812 12,236,556 (601,348) 194,151,020 Less Accumulated Depredation For: Buildings and improvements (45,107,519) (2,546,374) - (47,653,893) Infrastructure and improvements (60,592,092) (4,959,129) - (65,551,221) Equipment and vehicles (13,890,226) (2,276,280) 423,966 (15,742,540) Total Accumulated Depreciation (119,589,837) (9,781,783) 423,966 (128,947,654) Total Capital Assets, Being Depreciated, Net 62,925,975 2,454,773 (177,382) 65,203,366 Governmental Activities Capital Assets, Net $ 91,148,565 2,454,773 (177,382) 93,425,956 Business -type Activities Capital Assets, Not Being Depreciated: Land $ 4,399,500 - - 4,399,500 Total Capital Assets, Not Being Depreciated 4,399,500 - - 4,399,500 Capital Assets, Being Depreciated: Buildings and improvements 15,592,145 - - 15,592,145 Equipment 2,529,590 50,121 (63, 351) 2,516, 360 Total Capital Assets Being Depreciated 18,121,735 50,121 (63,351) 18,108,505 Less Accumulated Depredation For: Buildings and improvements (2,325,514) (522,614) - (2,848,128) Equipment (1,254,668) (226,133) 63,351 (1,417,450) Total Accumulated Depreciation (3,580,182) (748,747) 63,351 (4,265,578) Total Capital Assets, Being Depreciated, Net 14,541,553 (698,626) - 13,842,927 Business -type Activities Capital Assets, Net $ 18,941,053 (698,626) - 18,242,427 D19 6 -1 -44 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Depreciation on fixed assets is recorded using the following estimated useful lives: Governmental Activities: General government $ 462,614 Public safety 395,962 Public works and transportation 7,526,519 Culture and recreation 1,396,688 Total Depreciation Expense - Governmental Activities $ 9,781,783 Business -type Activities: Dispatch services $ 226,133 Housing 522,614 Total Depreciation - Business -type Activities $ 748,747 Years Buildings 25-40 Building improvements 7-25 Infrastructure 5-30 Vehicles 5-15 Equipment 5-10 At December 31, 2008, the Town had $27,137,353 of fully depreciated assets. D. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. For accounting purposes, these leases are considered to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial statements. E. Interfund Receivables, Payables, and Transfers There were no interfund balances at December 31, 2008. Interfund transfers during the year ended December 31, 2008 were as follows: Transferred to: Transferred from: Amount Purpose Capital Projects General 441,000 Incremental Property tax collections Vail Local Marketing District General 550,000 Winter marketing campaign Debt Service Fund Capital Projects 2,204,670 Transfer sales tax for debt service payment D20 6 -1 -45 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) F. Long -term Liabilities - Governmental Activities The Town has the following long -term debt outstanding for governmental activities: 1. Tax - Exempt Sales Tax Revenue Refunding Bonds, Series 1998A The Town issued $8,760,000 of insured Tax - Exempt Sales Tax Revenue Refunding Bonds (the "1998A Bonds ") dated September 1, 1998. Proceeds of the 1998A and 1998B Bonds (described below) were used to refund the outstanding principal balance on bonds issued in 1991 and 1992, which are considered to be defeased. The interest rate on the 1998A Bonds ranges from 4.25% to 4.5 %. Coupon payment dates for the 1998A Bonds are June 1 and December 1 annually. The Bonds are revenue obligations of the Town payable solely from the Town's 4% sales tax. The 1998A Bonds are secured by a lien on, but not an exclusive lien on, the sales tax. 1998A Bonds maturing on and after December 1, 2009 are subject to redemption prior to maturity at the option of the Town, in whole or in part, on December 1, 2008 and thereafter, at a redemption price equal to par, plus accrued interest to the redemption date. 2. Taxable Sales Tax Revenue Refunding Bonds, Series 1998B The Town issued $735,000 of insured Taxable Sales Tax Revenue Refunding Bonds (the "1998B Bonds ") dated September 1, 1998. The interest rate ranges from 6.00% to 6.05 %. Coupon payments are due June 1 and December 1 annually. The 1998B Bonds are revenue obligations of the Town payable solely from the Town's 4% sales tax. The bonds are secured by a lien on, but not an exclusive lien on, the sales tax. The 1998B Bonds were retired in 2007. 3. Sales Tax Revenue Refunding Bonds, Series 2002B The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1, 2002 (the "2002B Bonds "). Proceeds from the 2002B Bonds were used to refund outstanding 1992 bonds. The interest rate on the 2002B Bonds ranges from 2.5% to 4.0% and is payable on June 1 and December 1 annually through December 1, 2012. The 2002B Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 2002B Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues, on parity with the 1998 Bonds. D21 6 -1 -46 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) F. Long -term Liabilities - Governmental Activities (continued) 3. Sales Tax Revenue Refunding Bonds, Series 2002B (continued) 2002B Bonds maturing on or before December 1, 2011 are not subject to prior redemption. 2002B Bonds maturing on or after June 1, 2012 are subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2011 or thereafter, at a redemption price equal to the principal amount redeemed, plus a redemption premium equal to 1% of the principal redeemed, plus accrued interest to the redemption date. 4. Sales Tax Revenue Refunding Bonds, Series 2008 The Town issued $6,320,000 of Sales Tax Revenue Refunding Bonds dated December 1, 2008 (the "2008 Bonds "). Proceeds from the 2008 Bonds were used to refund outstanding 1998A bonds. The interest rate on the 2008 Bonds ranges from 3.5% to 4.0% and is payable on June 1 and December 1 annually through December 1, 2012. The 2008 Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 2008 Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues, on parity with the 1998 Bonds. 2008 Bonds maturing on or before December 1, 2011 are not subject to prior redemption. The 2008 Bonds are not subject to redemption prior to maturity at the option of the Town. G. Long -term Liabilities - Business -type Activities The Town has the following long -term debt outstanding for business -type activities: 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A The 2003A Bonds were issued July 15, 2003 in the principal amount of $19,025,000 as limited obligations of the Corporation and not indebtedness of the Town. The 2003A Bonds are payable solely from the rents and other receipts from operation of the Project, net of the Project's actual operating expenses (the "Pledged Revenues ") and the various reserve funds and other monies pledged under the terms of the 2003A indenture. Certain capitalized terms are further described in the 2003A indenture. The 2003A Bonds bear interest at the Weekly Rate established by the George K. Baum & Company (the "Remarketing Agent ") until converted to another "mode ", including a Fixed Rate, by the Corporation. While in any interest rate mode other than a Fixed Rate, the 2003A Bonds are subject to repurchase upon demand by any bondholder at 100% of the outstanding principal amount plus accrued interest. All tendered bonds are then to be subsequently remarketed by the Remarketing Agent. D22 6 -1 -47 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) G. Long -term Liabilities - Business -type Activities (continued) 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) The 2003A Bonds are subject to redemption prior to maturity (December 1, 2032 or specific maturity date, if converted to Fixed Rate) at the Corporation's option, using monies in the Redemption Fund, as follows: • 2003A Bonds in a Daily Mode or Weekly Mode - on any date prior to Maturity at 100% of the principal amount, plus accrued interest. • 2003A Bonds in a Commercial Long -Term Mode - after the following No -Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No -Call Period Redemption Price Greater than 12 years 10 years from the Rate 101 %, declining 0.5% per Change Date 6 months to 100% Greater than 4 years, but Until 2 years prior to the 100% less than 12 years end of the Rate Period Less than or equal to Length of the Rate Period Not subject to optional 4 years redemption • 2003A bearing a Fixed Rate - after the following No -Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No -Call Period Redemption Price Greater than 12 years 10 years from the 101 %, declining 0.5% per Conversion Date 6 months to 100% Greater than 4 years, but Until 2 years prior to 100% less than 12 years Maturity Less than or equal to Term to Maturity Not subject to optional 4 years redemption From the date of issuance through December 31, 2008, the 2003A Bonds have been in Weekly Mode, with interest rates set by the Remarketing Agent. Interest rates on the 2003A Bonds ranged from 1.94% to 9.00% per annum in 2008, and 4.76% to 5.92% per annum in 2007. At December 31, 2008, the interest rate on the 2003A Bonds was 1.94% per annum (4.96% at December 31, 2007); however, the Corporation's effective interest rate has been limited to 4% through August 1, 2006 and 5.5% thereafter, as provided by the Rate Protection Agreement discussed in Note IV. J. Total interest expense for 2008 incurred in respect of the 2003A Bonds was $676,960 ($1,017,124 for 2007). D23 6 -1 -48 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) G. Long -term Liabilities - Business -type Activities (continued) 2. Subordinate Housing Facilities Revenue Bonds, Series 2003B ( "2003B Bonds ") The 2003B Bonds were issued July 15, 2003 in the principal amount of $1,570,000 as subordinated, limited obligations of the Corporation and not indebtedness of the Town. The 2003B Bonds are payable solely from the Pledged Revenues and the various reserve funds and other monies pledged under the terms of the 2003B indenture, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds. The 2003B Bonds bear interest at the rate of 6.25% per annum, with semi - annual blended payments of interest and principal on June 1 and December 1 annually. During 2008, the Corporation incurred interest expense totaling $64,193 in respect of the 2003B Bonds ($73,307 for 2007). The 2003B Bonds mature December 1, 2013 but are subject to prior redemption, at the Corporation's option, at 100% of the principal amount, plus accrued interest; provided that redemption of the bonds is not from the proceeds of refunding bonds or other financing by the Corporation. 3. Promissory Note - Town of Vail (the "Town Notes ") In connection with the Corporation's purchase of the Project, the Town advanced $1,000,000 to the Corporation upon execution of a promissory note. During 2005 and 2006, the Town made additional advances of $700,000 and $200,000, respectively, to the Corporation upon execution of additional promissory notes. At December 31, 2008, the balance outstanding under the terms of these promissory notes (collectively, the "Town Notes ") was $1,900,000 ($1,900,000 at December 31, 2007). The Town Notes, which bear interest at the rate of 1.5% per annum, mature December 1, 2032. The Town Notes are payable solely from the Pledged Revenues, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds and the 2003B Bonds. The Town Notes are payable to the extent that the Corporation has determined that excess net revenues of the Project, after provision for necessary operating or capital reserves, have accumulated semi - annually on the business day following debt service on the 2003B Bonds. The Town Notes may be repaid by the Corporation at any time without penalty. In the event that a shortfall arises in the Bond Reserve Funds (as defined in the 2003A and 2003B Indentures) for the 2003A Bonds and /or the 2003B Bonds which is not cured within the prescribed deadlines by the Corporation, U.S. Bank National Association (the "Trustee ") will request that the Town replenish the deficient Bond Reserve Fund, and the Town has agreed to consider such requests but is not obligated to do so. Any funds advanced by the Town to replenish Bond Reserve Funds will be considered additional loans by the Town, subject to the same terms as the original Town Notes. D24 6 -1 -49 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) G. Long -term Liabilities - Business -type Activities (continued) 3. Promissory Note - Town of Vail (the "Town Notes ") (continued) The Town's failure to replenish any deficiency in the Bond Reserve Funds will not constitute an Event of Default (as defined in the 2003A and 2003B Indentures) for the 2003A Bonds or the 2003B Bonds. The Corporation incurred interest expense totaling $28,500 during 2008 ($28,500 for 2007) in respect of the Town Notes. At December 31, 2008, the Corporation had accrued a total of $126,968 ($98,468 at December 31, 2007) in interest payable to the Town under the terms of the Town Notes. H. Long -term Liabilities - Compensated Absences The Town has a policy allowing the accumulation of paid vacation and sick leave, subject to certain maximum limits. In accordance with GAAP, the Town's approximate liability for vacation pay earned by employees and longevity pay at December 31, 2008 has been reflected in the proprietary type fund financial statements and in the governmental activities column of the government -wide financial statements. Accumulated sick pay of approximately $2,836,054 at December 31, 2008 has not been reflected in the Town's financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I. Long -term Liabilities — Refunded In prior years, the town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the town until retired; however, they are not included for the purposes of calculating debt limits of the town. The amount of debt considered defeased cannot be readily determined as of December 31, 2008. D25 6 -1 -50 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) J. Long -term Liabilities - Activity and Debt Service Schedules Long -term liability activity for the year ended December 31, 2008 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: General Obligation Bonds: Tax- Exempt Refunding Bonds, Series 1998A 7,775,000 - (7,775,000) - - Tax- Exempt Refunding Bonds, Series 2008 - 6,300,000 - 6,300,000 1,500,000 Deferred amounts: Issuance premium - 203,221 - 203,221 Cost of refunding - (104,460) - (104,460) Net Tax - Exempt Refunding Bonds - 98,761 - 98,761 - Refunding Bonds, Series 2002B 2,490,000 - (465,000) 2,025,000 480,000 Compensated absences 1,052,195 177,409 - 1,229,604 473,842 Total Governmental Activities Long -term Liabilities $ 11,317,195 6,576,170 ± L 2 40,000 9,653,365 2,453,842 Business -type Activities: Housing Facilities Revenue Bonds: Adjustable Rate, Series 2003A $ 19,025,000 - - 19,025,000 405,000 Subordinated, Series 2003B 1,040,000 - (155,000) 885,000 145,000 Promissory note 1,900,000 - - 1,900,000 - Compensated absences 55,485 10,274 - 65,759 26,304 Total Business -type Activities Long -term Liabilities $ 22,020,485 10,274 (155,000) 21,875,759 576,304 D26 6 -1 -51 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) J. Long -term Liabilities - Activity and Debt Service Schedules (continued) Debt service requirements at December 31, 2008 were as follows: Principal Interest Total Governmental Activities: 2009 1,980,000 296,295 2,276,295 2010 2,035,000 238,331 2,273,331 2011 2,115,000 165,681 2,280,681 2012 2,195,000 82,275 2,277,275 Total Governmental Activities $ 8,325,000 782,582 9,107,582 Business -type Activities 2009 550,000 452,898 1,002,898 2010 585,000 435,978 1,020,978 2011 635,000 417,949 1,052,949 2012 670,000 397,656 1,067,656 2013 705,000 376,254 1,081,254 2014 -2018 2,945,000 1,660,259 4,605,259 2019 -2023 3,825,000 1,342,390 5,167,390 2024 -2028 4,970,000 929,170 5,899,170 2029 -2032 5,025,000 363,969 5,388,969 Total Business -type Activities $ 19,910,000 6,376,523 26,286,523 General obligation bonds issued for governmental activity purposes are liquidated by the Debt Service Fund, whereas, general obligation bonds issued for component unit purposes are liquidated by the component unit. Included in debt service requirements for business -type activities above are principal and interest payments due to the Town in the amounts of $1,900,000 and $684,000 respectively. K. Credit Facility and Reimbursement Agreement - Timber Ridge Affordable Housing Corporation Certain capitalized terms are defined in the 2003A Bonds Indenture. In connection with the issuance of the 2003A Bonds, an irrevocable, stand -by, direct pay letter of credit (the "Credit Facility ") in the amount of $19,207,432 was established July 17, 2003 by U.S. Bank, National Association ( "U.S. Bank ") in favor of the Trustee for the 2003A Bonds. Under the terms of the Credit Facility, up to $19,025,000 may be drawn to pay principal amounts of the 2003A Bonds, and up to $182,432 may be drawn to pay up to 35 days' accrued interest on the 2003A Bonds at a maximum rate of 10% per annum. Available credit under the Credit Facility will be permanently and proportionately reduced upon notice from the Trustee of redemption of less than all of the 2003A Bonds. D27 6 -1 -52 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement — Timber Ridge Affordable Housing Corporation (continued) The Credit Facility expires at the earlier of: a. July 17, 2009, although it automatically renews for successive one -year terms (unless U.S. Bank notifies the Trustee that the Credit Facility has not been renewed); b. 15 days following notice by U.S. Bank requiring payment of all outstanding 2003A Bonds due to Default; C. The date of acceleration or redemption of all 2003A Bonds; d. The second business day after conversion of the 2003A Bonds to a Fixed Mode interest rate; or e. The date of surrender of the Credit Facility for cancellation, as required by the Indenture. Concurrent with the Credit Facility, the Corporation executed a Reimbursement Agreement and a Demand Note in favor of U.S. Bank, evidencing the Corporation's obligation to repay all advances under the Credit Facility, together with interest on all such draws. All amounts drawn on or charged against the Credit Facility bear interest at the Bank Rate, which is equal to U.S. Bank's Prime Rate plus 200 Basis Points. The Credit Facility automatically renews each year, subject to the Corporation's compliance with requirements as to operational performance of the Corporation, provision of certain records to the Trustee, and payment of all fees (including annual stand -by fees equal to 125 Basis Points calculated on the original credit commitment, plus U.S. Bank's standard fees and charges for processing draws on the Credit Facility). Pursuant to this arrangement, the Corporation incurred financing fees during 2008 totaling $244,094 ($243,427 for 2007) for U.S. Bank in respect of stand -by fees for the Credit Facility. During 2003, U.S. Bank was paid a one -time origination fee of $192,074 from the proceeds on issuance of the 2003A Bonds, which has been capitalized as Bond Issue Costs. During 2008, the Corporation drew and repaid $651,984 ($1,022,570 for 2007) of advances on the Credit Facility. At December 31, 2008 and 2007, no balance was outstanding on the Credit Facility. The Reimbursement Agreement imposes the following funding commitments on the Corporation: a. Commencing January 1, 2009, the Corporation is to deposit into the Bond Principal Fund an amount equal to 1/12 of the scheduled principal reductions for the 2003A Bonds, to be used by the Trustee to pay for optional redemptions as provided in the 2003A Indenture. b. $90,000 was paid from the proceeds of issuance of the 2003A Bonds into a Replacement Reserve account. Annually thereafter, the Corporation is to deposit an equal amount increased by 3% per annum into the Replacement Reserve account, with usage of such funds restricted to capital improvements to the Project approved by U.S. Bank. The Replacement Reserve Account is pledged to U.S. Bank and not the owners of the 2003A Bonds. C. The Corporation is required to deposit all security deposits received from tenants of the Project into a separate account. d. Commencing August 1, 2004 and annually thereafter, the Corporation is to deposit into a Rate Cap Escrow Account an amount not less than $45,000, to be used only to pay for required rate protection agreements. D28 6 -1 -53 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement - Timber Ridge Affordable Housing Corporation (continued) As required by the Reimbursement Agreement and for as long as the Credit Facility is outstanding, the Corporation is required to have in effect a rate protection agreement at a fixed interest rate acceptable to U.S. Bank in an amount equal to the then - outstanding principal amount of the Credit Facility, with a floating rate payer acceptable to U.S. Bank. The Corporation's rate protection agreement is subsequently described. V. Other Information A. Pension Plans The Town offers two defined contribution pension plans to cover all permanent paid employees of the Town. The Town established these qualified money purchase pension plans under Internal Revenue Code section 401(a), and may amend all of the plan provisions. The first plan covers all full time and qualified seasonal employees other than sworn police officers and firefighters; the second plan covers all full time and qualified seasonal employees of the Town's Police and Fire departments. The plan provisions are the same for both plans. In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long -term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100 %. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100 %. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5 %. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. D29 6 -1 -54 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) V. Other Information (continued) A. Pension Plans (continued) The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2008 of $30,057,847 are stated at market value. All earnings, losses, expenses and changes in the fair market value of the trust fund will be apportioned at least annually among the participants in proportion to each participant's current share of the Trust Investment Fund. The Town has no liability for unfunded future vested employee benefits. The trustees and administrators of the plans are the Retirement Board. The Retirement Board determines investment options made available to participants, in adherence with an adopted investment policy statement. The total amount of the Town's 2008 covered payroll was $14,695,302 of which $12,793,452 was for permanent employees and $1,901,850 was for seasonal staff. Total 2008 payroll for all Town employees was $15,923,752. B. Retirement Savings Plan - Deferred Compensation Plan - IRC 457 The Town offers its employees a deferred compensation plan (the "457 Plan ") created in accordance with Internal Revenue Code section 457. The 457 Plan, available to all Town employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. The modified accrual basis of accounting is used for the 457 Plan. The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town's administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. The total assets of the 457 Plan were $5,130,875 at December 31, 2008. The assets were invested in mutual funds, as previously described. Pursuant to the Town's adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D30 6 -1 -55 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) V. Other Information (continued) D. Risk Management The Town is exposed to various risks of loss related to workers compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. E. Commitments and Contingencies 1. Legal Claims During the normal course of business, the Town may incur claims and other assertions against it from various agencies and individuals. Management of the Town and their legal representatives feel none of these claims or assertions are significant enough that they would materially affect the fairness of the presentation of the financial statements at December 31, 2008. 2. Federal Funds Funds received from Federal grants and programs are subject to audit and disallowance on ineligible costs. Management of the Town feels any potential questioned or disallowed costs would not materially affect the fairness of the presentation of the financial statements at December 31, 2008. 3. Mold Remediation - Timber Ridge Affordable Housing Corporation Beginning in 2003, the Corporation performed remediation and other precautionary renovations to the Project to alleviate potential and identified mold problems in certain rental units. As of December 31, 2007, all 198 units were renovated. The Corporation did not incur any mold remediation costs during 2008. F. Rate Protection Agreement - Timber Ridge Affordable Housing Corporation Effective July 15, 2003, the Corporation entered into a Rate Protection Agreement with SMBC Derivative Products Limited ( "SMBC ") whereby SMBC agreed to limit the Corporation's interest payable on the 2003A Bonds to 4% per annum through August 1, 2006. For its services under the Rate Protection Agreement, SMBC was paid a fee of $133,000 during the period ended December 31, 2003, which has been capitalized as bond issue costs. Effective August 1, 2006, the Rate Protection Agreement was revised in that SMBC agreed to limit the Corporation's interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2008. SMBC was paid a $70,000 fee in 2006 for this service, which has been capitalized as Bond Issue Costs. Effective April 30, 2008, the Rate Protection Agreement was revised in that SMBC agreed to limit the Corporation's interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2010. SMBC was paid a fee of $14,650 in 2008 for this service, which has been capitalized as Bond Issue Costs. D31 6 -1 -56 Town of Vail, Colorado Notes to the Financial Statements December 31, 2008 (Continued) V. Other Information (continued) F. Rate Protection Agreement - Timber Ridge Affordable Housing Corporation (continued) During 2008, the Corporation was not reimbursed (2007 - $42) by SMBC under the terms of the Rate Protection Agreement to limit the Corporation's interest payable on the 2003A Bonds to 5.5% (2007 — 5.5 %) per annum. G. Related Party Transactions - Vail Local Marketing District The District has executed a Coordination Agreement with Vail Valley Partnership ( "VVP ") under which VVP provides some marketing coordination services to the District in return for a fixed fee. The District paid VVP $50,000 for its services in 2008. The Coordination Agreement also requires the District to pay a fixed fee to the Town, for accounting services and marketing coordination provided by the Town. Fees totaling $18,000 for accounting services and $75,000 for marketing coordination were incurred by the District during 2008 from the Town. H. Conduit Debt - Town of Vail, Colorado Multifamily Housing Revenue Bonds (Middle Creek Village Apartments Project), Series 2003A, 2003B and 2003 -T These bonds were issued in 2003 in an aggregate principal amount of $16,850,000 to finance construction of multi - family housing projects within the Town. The bonds mature in 2038. The bonds are solely payable from, and are secured by, a pledge of revenue from loan agreements between the Town and Middle Creek Village, LLC (as borrower). The borrower's obligation is secured by Deeds of Trust, Security Agreements, Financing Statements and assignment of rents and leases. The bonds are a special limited obligation of the Town, payable solely from the specified revenues of the projects, and do not constitute debt or indebtedness of the Town. D32 6 -1 -57 REQUIRED SUPPLEMENTARY INFORMATION 6 -1 -58 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: General sales taxes 11,640,000 11,640,000 11,640,000 - 10,741,500 Property and ownership taxes 3,843,500 4,293,500 4,309,622 16,122 3,012,030 Ski area lift ticket admissions tax 3,123,852 3,123,852 3,277,703 153,851 3,039,619 Franchise tax 795,000 895,000 1,052,665 157,665 858,285 Penalties and interest on delinquent taxes 31,110 31,110 22,544 (8,566) 19,349 Total - Taxes 19,433,462 19,983,462 20,302,534 319,072 17,670,783 Permits and Licenses: Construction fees 2,280,000 3,428,000 3,799,444 371,444 4,992,752 Contractors' licenses 30,000 30,000 42,061 12,061 34,398 Other permits and licenses 43,950 43,950 61,521 17,571 55,867 Total - Permits and Licenses 2,353,950 3,501,950 3,903,026 401,076 5,083,017 Intergovernmental: County sales tax 620,800 620,800 625,674 4,874 603,364 County road and bridge 450,000 710,670 733,673 23,003 497,974 Additional motor vehicle registration fees 26,000 26,000 25,109 (891) 25,578 Cigarette tax 80,000 80,000 80,913 913 81,781 Highway users tax 180,000 180,000 179,605 (395) 191,042 State health inspection 10,000 10,000 11,768 1,768 18,822 Other state sources - 77,590 49,455 (28,135) 30,936 Federal sources - - - 59,542 Total - Intergovernmental 1,366,800 1, 705,060 1,706,197 1,137 1,509,039 Charges for Services: Management fees - Vail Local Marketing District 83,000 83,000 93,000 10,000 66,750 Internal service charge 506,985 456,985 550,409 93,424 318,297 Out of district fire response 30,000 87,227 97,526 10,299 57,393 Alarm monitoring fees 50,000 50,000 37,853 (12,147) 36,953 Parking 3,651,380 5,013,880 4,705,984 (307,896) 4,514,392 Fines and forfeitures 215,000 259,000 396,707 137,707 347,090 Rents 763,000 797,400 949,961 152,561 897,958 Other charges, services, and sales 232,150 245,150 332,467 87,317 357,755 Total - Charges for Services 5,531,515 6,992,642 7,163,907 171,265 6,596,588 Other Revenues: Earnings on investments 675,000 585,000 571,072 (13,928) 984,040 Other 70,000 156,807 163,025 6,218 195,016 Total - Other Revenues 745,000 741,807 734,097 (7,710) 1,179,056 Total Revenues 29,430,727 32,924,921 33,809,761 884,840 32,038,483 The accompanying notes are an integral part of these financial statements E1 6 -1 -59 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 (Continued) 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Expenditures: General Government: Town officials 1,370,278 1,259,823 1,224,007 35,816 1,245,517 Administrative 3,339,290 3,390,741 3,164,384 226,357 3,155,193 Community development 3,367,056 3,473,684 3,327,400 146,284 3,329,590 Total - General Government 8,076,624 8,124,248 7,715,791 408,457 7,730,300 Public Safety: Police department 5,232,201 5,349,440 5,047,503 301,937 4,799,831 Fire department 2,414,842 2,570,563 2,577,087 (6,524) 2,305,073 Total - Public Safety 7,647,043 7,920,003 7,624,590 295,413 7,104,904 Public Works and Transportation: Highways and streets 3,412,895 3,606,971 3,717,159 (110,188) 3,134,300 Transportation 5,355,858 3,765,217 3,853,826 (88,609) 3,390,419 Parking operations 871,308 900,337 926,689 (26,352) 795,353 Facility maintenance 3,178,349 3,262,027 3,281,389 (19,362) 3,045,019 Total - Public Works and Transportation 12,818,410 11,534,552 11,779,063 (244,511) 10,365,091 Culture and Recreation: Contributions, marketing and special events 1,572,482 1,572,087 1,541,498 30,589 1,293,767 Special recreation facilities 202,575 202,575 161,594 40,981 168,224 Library 839,062 842,762 828,056 14,706 752,031 Total - Culture and Recreation 2,614,119 2,617,424 2,531,148 86,276 2,214,022 Total Expenditures 31,156,196 30,196,227 29,650,592 545,635 27,414,317 Excess of Revenues Over Expenditures (1,725,469) 2,728,694 4,159,169 1,430,475 4,624,166 Other Financing Sources (Uses): Transfers out (991,000) (991,000) - (222,500) Total Other Financing Sources (Uses) (991,000) (991,000) (222,500) Net Change in Fund Balances (1,725,469) 1,737,694 3,168,169 1,430,475 4,401,666 Fund Balances - January 1 14,686,181 19,834,717 19,834,717 15,433,051 Fund Balances - December 31 12,960,712 21,572,411 23,002,886 1,430,475 19,834,717 The accompanying notes are an integral part of these financial statements E2 6 -1 -60 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax 7,760,000 7,760,000 8,171,920 411,920 8,308,506 Construction Use tax - 582,000 608,483 26,483 - Total - Taxes 7,760,000 8,342,000 8,780,403 438,403 8,308,506 Intergovernmental: County revenues - 317,000 50,000 (267,000) - CDOT grants / State revenue - - 3,600 3,600 - Federal grants 815,577 815,577 815,577 - 1,571 Total - Intergovernmental 815,577 1,132,577 869,177 (263,400) 1,571 Charges for Services: Leases - Vail Commons 187,800 187,800 188,160 360 188,160 Resale fees - - 12,199 12,199 10,788 Total - Charges for Services 187,800 187,800 200,359 12,559 198,948 Other: Earnings on investments 10,850 210,850 211,065 215 537,562 Construction Fees - 100,000 93,700 (6,300) 313,592 Project reimbursements /shared costs 565,000 982,360 417,360 1,314,618 Employee Housing Fee -in -Lieu 503,000 529,481 26,481 - Other - 235,703 58,739 (176,964) 176,839 Total - Other 10,850 1,614,553 1,875,345 260,792 2,342,611 Total Revenues 8,774,227 11,276,930 11,725,284 448,354 10,851,636 Expenditures: Public Works: Capital projects and acquisition 7,189,635 17,382,962 11,416,938 5,966,024 8,944,116 Excess (Deficiency) of Revenues Over Expenditures 1,584,592 (6,106,032) 308,346 6,414,378 1,907,520 Other Financing Sources (Uses): Sale of assets - - 178,066 178,066 85,000 Transfers in 516,000 516,000 - 222,500 Transfers (out) (2,321,825) (2,321,825) (2,204,670) (117,155) (2,322,497) Total Other Financing Sources (Uses) (2,321,825) (1,805,825) (1,510,604) 60,911 (2,014,997) Net Change in Fund Balances (737,233) (7,911,857) (1,202,258) 6,475,289 (107,477) Fund Balances - January 1 754,153 12,109,128 12,109,128 - 12,216,605 Fund Balances - December 31 16,920 4,197,271 10,906,870 6,475,289 12,109,128 The accompanying notes are an integral part of these financial statements E3 6 -1 -61 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Real estate transfer tax 8,230,000 7,230,000 9,091,917 1,861,917 6,536,118 Intergovernmental Revenue: Lottery revenue 20,000 20,000 24,514 4,514 24,451 Other Federal grants - 2,400 2,400 - - Total - Intergovernmental Revenue 20,000 22,400 26,914 4,514 24,451 Charges for Services: Recreation amenities fee 125,000 55,000 54,822 (178) 1,164,574 Land lease to Vail Recreation District 126,708 126,708 122,010 (4,698) 116,472 Total - Charges for Services 251,708 181,708 176,832 (4,876) 1,281,046 Other: Project reimbursements - 6,000 4,102 (1,898) 246,073 Earnings on investments 200,000 270,000 346,452 76,452 507,277 Other - 118,956 143,461 24,505 227,651 Total - Other 200,000 394,956 494,015 99,059 981,001 Total Revenues 8,701,708 7,829,064 9,789,678 1,960,614 8,822,616 Expenditures: Culture and Recreation: Project management 411,500 361,500 435,055 (73,555) 253,591 Park maintenance 1,253,900 1,311,066 1,143,289 167,777 1,085,479 Environmental sustainability 250,000 229,711 166,035 63,676 - Art in public places 62,167 65,275 78,457 (13,182) 77,111 Public Safety 360,000 248,334 209,750 38,584 - Public Works: Capital projects 6,857,089 10,452,659 2,238,099 8,214,560 4,593,551 Total Expenditures 9,194,656 12,668,545 4,270,685 8,397,860 6,009,732 Net Change in Fund Balances (492,948) (4,839,481) 5,518,993 10,358,474 2,812,884 Fund Balances - January 1 6,953,621 11,769,273 11,769,273 - 8,956,389 Fund Balances - December 31 6,460,673 6,929,792 17,288,266 10,358,474 11,769,273 The accompanying notes are an integral part of these financial statements E4 6 -1 -62 Town of Vail, Colorado Special Revenue Funds Conference Center Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Earnings on investments 425,000 225,000 218,193 (6,807) 424,382 Total Revenues 425,000 225,000 218,193 (6,807) 424,382 Expenditures: Economic Development - - - - Total Expenditures - - - - Net Change in Fund Balances 425,000 225,000 218,193 (6,807) 424,382 Fund Balances - January 1 8,921,901 9,046,283 9,046,283 8,621,901 Fund Balances - December 31 9,346,901 9,271,283 9,264,476 (6,807) 9,046,283 The accompanying notes are an integral part of these financial statements E5 6 -1 -63 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Variance Original Positive Budget Actual (Negative) Actual Revenues: Permits and Licenses: Business licenses 314,500 312,839 (1,661) 305,414 Other: Earnings on investments - 3,819 3,819 5,888 Total Revenues 314,500 316,658 2,158 311,302 Expenditures: Economic Development: Commission on Special Events 280,000 280,000 - 280,000 Administration fee 15,725 15,642 83 15,200 Total Expenditures 295,725 295,642 83 295,200 Excess (Deficiency) of Revenues Over Expenditures 18,775 21,016 2,241 16,102 Fund Balances - January 1 55,317 62,619 7,302 46,517 Fund Balances - December 31 74,092 83,635 9,543 62,619 The accompanying notes are an integral part of these financial statements E6 6 -1 -64 Town of Vail, Colorado Special Revenue Funds Vail Local Marketing District Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Lodging tax 2,075,000 2,075,000 2,179,300 104,300 2,063,915 Other: Earnings on investments 6,500 6,500 8,877 2,377 11,053 Miscellaneous - - 29,935 29,935 3,837 Total - Other 6,500 6,500 38,812 32,312 14,890 Total Revenues 2,081,500 2,081,500 2,218,112 136,612 2,078,805 Expenditures: Economic Development: Destination 235,000 435,000 256,124 178,876 158,790 Front Range 484,500 709,500 632,999 76,501 507,246 Groups and meetings 298,940 316,440 325,400 (8,960) 281,433 Marketing 533,000 868,182 796,697 71,485 340,209 Purchased services 680,678 702,996 737,040 (34,044) 573,184 Total Expenditures 2,232,118 3,032,118 2,748,260 283,858 1,860,862 Excess (Deficiency) of Revenues Over Expenditures (150,618) (950,618) (530,148) 420,470 217,943 Other Financing Sources (Uses): Repayment of debt - (37,000) Total Other Financing Sources (Uses) (37,000) Other Financing Sources (Uses): Transfers in 550,000 550,000 Total Other Financing Sources (Uses) 550,000 550,000 - - Net Change in Fund Balances (150,618) (400,618) 19,852 420,470 180,943 Fund Balances - January 1 746,793 1,006,736 1,006,736 825,793 Fund Balances - December 31 596,175 606,118 1,026,588 420,470 1,006,736 The accompanying notes are an integral part of these financial statements E7 6 -1 -65 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Other: Property Tax 720,000 1,389,107 1,376,171 (12,936) 337,502 Earnings on investments 21,000 21,000 15,062 (5,938) 8,157 Shared costs /project reimbursements 14,567 Total Revenues 741,000 1,410,107 1,391,233 (18,874) 360,226 Expenditures: Economic Development: Administration 15,400 25,700 24,441 1,259 - Treasurer's Fees 21,600 41,673 41,285 388 10,124 Professional fees 50,000 50,000 4,706 45,294 37,829 Capital Outlay - 160,000 151,873 8,127 - Vail Square Metro District - 149,484 149,482 2 - Total Expenditures 87,000 426,857 371,787 55,070 47,953 Net Change in Fund Balances 654,000 983,250 1,019,446 36,196 312,273 Fund Balances - January 1 276,833 314,105 314,105 - 1,832 Fund Balances - December 31 930,833 1,297,355 1,333,551 36,196 314,105 The accompanying notes are an integral part of these financial statements E8 6 -1 -66 SUPPLEMENTARY INFORMATION 6 -1 -67 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Other: Earnings on investments 50,830 50,830 3,955 Total Revenues - - 50,830 50,830 3,955 Expenditures: Debt Service: Principal 1,890,000 1,890,000 1,890,000 - 1,810,000 Interest 432,396 432,396 432,395 1 512,098 Refunding Bonds Issuance Costs - - - - - Fiscal agent fees 2,500 2,500 2,500 - 900 Total Expenditures 2,324,896 2,324,896 2,324,895 1 2,322,998 (Deficiency) of Revenues Over Expenditures (2,324,896) (2,324,896) (2,274,065) 50,831 (2,319,043) Other Financing Sources: Transfers in 2,321,825 2,321,825 2,204,670 (117,155) 2,322,497 Debt proceeeds, net - 106,760 (96,461) (203,221) - Issuance costs premium - 203,221 203,221 Issuance costs, net - (115,760) (115,741) 19 - Total Other Financing Sources (Uses 2,321,825 2,312,825 2,195,689 (117,136) 2,322,497 Net Change in Fund Balances (3,071) (12,071) (78,376) (66,305) 3,454 Fund Balances - January 1 247,154 252,710 252,710 249,256 Fund Balances - December 31 244,083 240,639 174,334 (66,305) 252,710 The accompanying notes are an integral part of these financial statements F1 6 -1 -68 Town of Vail, Colorado Enterprise Fund Timber Ridge Affordable Housing Corporation Schedule of Revenues, Expenses, and Change in Fund Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Rent 2,701,535 2,701 2,830,033 128,498 2,633,552 Laundry room lease 32,360 32,360 32,756 396 29,070 Other 300 300 2,348 2,048 3,464 Total Operating Revenues 2,734,195 2,734,195 2,865,137 130,942 2,666,086 Operating Expenses: Advertising 2,100 2,100 3,264 (1,164) 2,378 Office expenses 9,780 9,780 13,726 (3,946) 11,205 Management fee 87,000 87,000 87,000 87,000 Telecommunications 6,300 6,300 7,559 (1,259) 7,870 Wages - Administrative 31,665 31,665 31,823 (158) 51,872 Wages - Maintenance and other 153,779 153,779 120,352 33,427 136,675 Repairs and maintenance 127,604 86,004 93,560 (7,556) 119,290 Electric 27,950 27,950 19,616 8,334 25,474 Water and sewer 108,070 108,070 117,543 (9,473) 105,805 Trash removal 16,675 25,875 27,696 (1,821) 17,281 Snow removal 21,200 51,595 55,605 (4,010) 12,434 Fire, life, safety, and security 4,050 4,050 989 3,061 8,689 Property insurance 125,712 125,712 111,562 14,150 145,905 Professional fees 6,250 8,000 8,000 - 6,100 Bad debt expense - - 1,207 (1,207) 1,329 Miscellaneous 3,200 3,200 1,941 1,259 3,196 Mold remediation - - - - 10,182 Life & safety repairs - 202,345 176,041 26,304 195,581 Depreciation 522,612 522,612 522,614 (2) 525,446 Total Operating Expenses 1,253,947 1,456,037 1,400,098 55,939 1,473,712 Operating Income (Loss) 1,480,248 1,278,158 1,465,039 186,881 1,192,374 Non - operating Revenues (Expenses): Earnings on investments 24,264 24,264 21,161 (3,103) 25,972 Interest expense reimbursement - Rate cap agreement - - - - 42 Interest expense (1,139,880) (989,880) (769,652) 220,228 (1,118,931) Financing fees (267,268) (267,268) (274,059) (6,791) (273,263) Amortization of bond issue costs (78,996) (78,996) (53,871) 25,125 (75,922) Total Non - operating Revenue (Expenses) (1,461,880) (1,311,880) (1,076,421) 235,459 (1,442,102) Change in Net Assets 18,368 (33,722) 388,618 422,340 (249,728) The accompanying notes are an integral part of these financial statements F2 6 -1 -69 Town of Vail, Colorado Enterprise Fund Dispatch Services Fund Schedule of Revenues, Expenses, and Change in Fund Net Assets Budget (Non -GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Dispatch service fee 535,657 535,657 533,164 (2,493) 512,427 Dispatching contracts 956,694 1,050,439 1,050,439 - 942,204 Other charges - - 7,500 7,500 92,135 Total Operating Revenues 1,492,351 1,586,096 1,591,103 5,007 1,546,766 Operating Expenses: Public Safety: Salaries and benefits 1,606,676 1,606,676 1,588,183 18,493 1,399,038 Operating expenses 465,511 478,511 459,767 18,744 397,630 Capital outlay 50,000 142,000 50,121 91,879 - Total Operating Expenses 2,122,187 2,227,187 2,098,071 129,116 1,796,668 Operating (Loss) - Budget Basis (629,836) (641,091) (506,968) 134,123 (249,902) Non - operating Revenues: Operating grant - E -911 Board 582,183 607,183 607,183 - 586,404 Earnings on investments - 12,000 18,763 6,763 38,678 Total Non - operating Revenues 582,183 619,183 625,946 6,763 625,082 Income Before Transfers (47,653) (21,908) 118,978 140,886 375,180 Transfers Out (75,000) (75,000) Change in Net Assets - Budget Basis (47,653) (96,908) 43,978 140,886 375,180 Reconciliation to GAAP Basis: Adjustments: Contribution from External Sources - 33,000 Contribution from Capital Projects Fund 77,860 Change in compensated absences (10,274) (5,207) Depreciation (226,133) (226,388) Capitalized assets 50,121 Total Adjustments (186,286) (120,735) Change in Net Assets - GAAP Basis (142,308) 254,445 The accompanying notes are an integral part of these financial statements F3 6 -1 -70 Town of Vail, Colorado Internal Service Funds Heavy Equipment Fund Schedule of Revenues, Expenses, and Change in Fund Net Assets Budget (Non -GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Operating charges 2,142,663 2,297,163 2,403,479 106,316 1,847,451 Replacement charges 653,282 654,665 664,018 9,353 645,958 Total - Charges and Fees 2,795,945 2,951,828 3,067,497 115,669 2,493,409 Other: Insurance reimbursements 18,000 18,000 33,724 15,724 27,294 Other 20,800 41,857 77,613 35,756 41,761 Total - Other 38,800 59,857 111,337 51,480 69,055 Total Operating Revenues 2,834,745 3,011,685 3,178,834 167,149 2,562,464 Operating Expenses: Public Works: Vehicle maintenance and fuel 2,151,043 2,384,314 2,323,840 60,474 1,894,184 Capital outlay 686,300 923,456 640,907 282,549 534,112 Total Operating Expenses 2,837,343 3,307,770 2,964,747 343,023 2,428,296 Operating Income (Loss) - Budget Basis (2,598) (296,085) 214,087 510,172 134,168 Non - operating Revenues: Earnings on investments 65,000 45,000 41,169 (3,831) 66,476 Proceeds from sale of assets 133,530 133,530 77,964 (55,566) 148,760 Total Non - operating Revenues: 198,530 178,530 119,133 (59,397) 215,236 Change in Net Assets - Budget Basis 195,932 (117,555) 333,220 450,775 349,404 Reconciliation to GAAP Basis: Adjustments: Contribution from Capital Projects Fund 44,681 57,489 Net book value of disposed assets (1,562) (49,728) Depreciation (569,560) (547,745) Change in accrued compensated absences (5,975) (2,229) Capitalized assets 640,907 534,112 Total Adjustments 108,491 (8,101) Change in Net Assets - GAAP Basis 441,711 341,303 The accompanying notes are an integral part of these financial statements F4 6 -1 -71 Town of Vail, Colorado Internal Service Funds Health Insurance Fund Schedule of Revenues, Expenses, and Change in Fund Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Insurance premiums 2,492,561 2,492,561 2,394,290 (98,271) 2,418,000 Insurance premiums - Employee contributions 285,792 285,792 286,058 266 270,665 Insurer proceeds 7,500 106,482 111,957 5,475 360,839 Total Operating Revenues 2,785,853 2,884,835 2,792,305 (92,530) 3,049,504 Operating Expenses: General Government: Health claims 2,425,000 2,425,000 2,163,853 261,147 2,814,181 Premiums 330,553 330,553 287,533 43,020 267,075 Administrative fees 20,000 20,000 20,000 - 17,500 Short -term disability payments 40,000 40,000 7,442 32,558 14,627 Total Operating Expenses 2,815,553 2,815,553 2,478,828 336,725 3,113,383 Operating Income (Loss) (29,700) 69,282 313,477 244,195 (63,879) Non - operating Revenues: Earnings on investments 29,700 29,700 35,866 6,166 44,723 Change in Net Assets - GAAP Basis - 98,982 349,343 250,361 (19,156) The accompanying notes are an integral part of these financial statements F5 6 -1 -72 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Assets December 31, 2008 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments 1,853,306 1,703,162 3,556,468 Accounts receivable, net of allowance for uncollectibles 10,566 2,458 13,024 Inventory 278,142 - 278,142 Prepaid expenses - 1,185 1,185 Total Current Assets 2,142,014 1,706,805 3,848,819 Non - current Assets: Property, plant, and equipment, net of accumulated depreciation 3,064,975 - 3,064,975 Total Assets 5,206,989 1,706,805 6,913,794 Liabilities: Current Liabilities: Accounts payable 46,204 367,344 413,548 Accrued salaries and wages 31,992 - 31,992 Current portion of compensated absences 22,824 22,824 Total Current Liabilities 101,020 367,344 468,364 Non - current Liabilities: Compensated absences, net of current portion 34,235 34,235 Total Liabilities 135,255 367,344 502,599 Net Assets: Invested in capital assets, net of related debt 3,064,975 - 3,064,975 Unrestricted 2,006,759 1,339,461 3,346,220 Total Net Assets 5,071,734 1,339,461 6,411,195 The accompanying notes are an integral part of these financial statements F6 6 -1 -73 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2008 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal 3,067,497 2,394,290 5,461,787 Charges for services - External - 286,058 286,058 Insurance reimbursements 33,724 111,957 145,681 Other 77,613 - 77,613 Total Operating Revenues 3,178,834 2,792,305 5,971,139 Operating Expenses: Operations 2,329,815 - 2,329,815 Health claims and premiums - 2,478,828 2,478,828 Depreciation 569,560 - 569,560 Total Operating Expenses 2,899,375 2,478,828 5,378,203 Operating Income (Loss) 279,459 313,477 592,936 Non - operating Revenues (Expenses): Gain (loss) on disposal of assets 76,402 - 76,402 Investment income 41,169 35,866 77,035 Total Non - operating Revenues (Expenses) 117,571 35,866 153,437 Income (Loss) Before Transfers and Capital Contributions 397,030 349,343 746,373 Capital Contributions, Net 44,681 44,681 Change in Net Assets 441,711 349,343 791,054 Net Assets - January 1 4,630,023 990,118 5,620,141 Net Assets - December 31 5,071, 734 1,339,461 6,411,195 The accompanying notes are an integral part of these financial statements F7 6 -1 -74 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2008 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 3,067,497 2,394,290 5,461,787 Other cash receipts 121,367 395,557 516,924 Cash paid for goods and services (1,422,729) (2,455,550) (3,878,279) Cash paid to employees (885,327) (7,442) (892,769) Net Cash Provided by Operating Activities 880,808 326,855 1,207,663 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 77,964 - 77,964 Acquisition and construction of capital assets (640,907) (640,907) Net Cash (Used) by Capital and Related Financing Activities (562,943) (562,943) Cash Flows From Investing Activities: Earnings on investments 41,169 35,866 77,035 Net Cash Provided by Investing Activities 41,169 35,866 77,035 Net Increase in Cash and Cash Equivalents 359,034 362,721 721,755 Cash and Cash Equivalents - Beginning 1,494,272 1,340,441 2,834,713 Cash and Cash Equivalents - Ending 1,853,306 1,703,162 3,556,468 Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities: Operating income (loss) 279,459 313,477 592,936 Adjustments: Depreciation 569,560 - 569,560 (Increase) decrease in accounts receivable 10,030 (2,458) 7,572 (Increase) decrease in inventory 15,142 - 15,142 (Increase) decrease in prepaid expenses - 15,991 15,991 Increase (decrease) in accounts payable (13,260) (155) (13,415) Increase (decrease) in accrued wages and benefits 19,877 19,877 Total Adjustments 601,349 13,378 614,727 Net Cash Provided by Operating Activities 880,808 326,855 1,207,663 Schedule of Non -cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund 44,681 - 44,681 The accompanying notes are an integral part of these financial statements F8 6 -1 -75 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CB1008 Building Remodels - - - 57,986 CB1010 Fire infrastructure improvements 329,229 6,900 322,329 - CB1021 Donovan Park Pavilion 13,000 12,908 92 - CEP001 Fire Truck Purchase / Refurbish - - - 598,568 CEP002 Heavy Duty Tire Changer 3,400 - 3,400 14,100 CEP004 Replace buses 3,840,297 3,688,836 151,461 2,308 CEP005 Software /hardware purchases 79,473 73,969 5,504 120,827 CEP006 800 MHz Radio Replacement 545,500 543,280 2,220 - CEP008 Parking Entry System 52,985 54,750 (1,765) 422,363 CEP010 Network Upgrades 43,478 39,427 4,051 33,522 CEP011 Document imaging 350,000 243,301 106,699 132,335 CEP016 GPS system for buses - - - 52,750 CEP017 Radio Tower Equipment 5,000 - 5,000 - CEP018 Web page development 30,000 13,050 16,950 - CEP019 CAD /RMS dispatch project 58,640 58,959 (319) 77,860 CEP022 Audio Visual 24,000 23,846 154 12,052 CEP023 Video cameras patrol cars 8,000 8,000 - - CEP030 Vehicle expansion 61,411 44,681 16,730 43,389 CEP031 Software Licensing 8,500 - 8,500 - CEP032 Police Radio AMP Parking 50,000 45,365 4,635 CEP033 Data Centers / Computer Rooms 35,500 - 35,500 CEP034 Generator Replacement 250,000 229,876 20,124 CHP006 Loan guarantee - Timber Ridge 925,000 - 925,000 - CHP007 Timber Ridge Legal / Zoning 63,927 44,520 19,407 3,631 CHP010 East Vail Lodging Unit - - - 173,968 CHP011 Vail Heights Unit (Chamonix Lane) - - - 280,841 CHP012 Pitkin Creek Unit 7,350 6,054 1,296 463,121 CHP013 Gore Range Condo Units 2E & 3W 599,452 599,961 (509) - CHP014 Altair Vail Inn Unit #201 -A 178,066 178,180 (114) CHP015 Housing Strategic Plan 25,341 12,067 13,274 CMP005 Bio Mass Study 50,000 - 50,000 - CMT003 Bus shelter replacement program 79,354 25,566 53,788 10,646 CMT004 Capital street maintenance 1,702,280 1,696,772 5,508 816,810 CMT005 Facility capital 568,817 532,918 35,899 489,050 CMT007 Parking structure maintenance 1,163,216 759,598 403,618 339,423 CMT009 Flammable Storage / Mag Chloride 24,000 5,600 18,400 - CMT010 Underground Utilities 212,783 153,296 59,487 57,217 COE004 Property Tax Increment Reserved 441,000 - 441,000 - COT002 Street light improvement program 75,000 72,724 2,276 158,874 COT004 Fiber -optic connection 30,000 24,179 5,821 - COT009 Lionshead improvements 32,242 48,579 (16,337) 81,522 COT011 1 -70 noise mitigation 1,079,282 27,643 1,051,639 8,293 COT014 West Vail area plan 3,406 - 3,406 4,570 COT015 Strategic planning - - - 12,034 COT016 LH Parking Structure RFP 64,857 55,009 9,848 151,505 COT018 Chamonix Area Plan 149,871 149,762 109 - COT021 1 -70 Fiber Optics 909,128 740,347 168,781 - CPA003 Wendy's property - purchase - - - 2,052,726 CSCO10 Way- finding improvements 36,416 25,443 10,973 3,480 CSC011 West Meadow Drive 1,720,000 1,119,317 600,683 950,000 CSCO12 Village Streetscape 1,128,761 36,055 1,092,706 286,698 CSCO13 E. Meadow Dr. Streetscape - - - 1,030,000 CSR007 Neighborhood Road Reconstruction 150,000 150,000 - CSR008 Neighborhood Bridges 75,000 - 75,000 - CS1001 Manor Vail Development 100,000 16,200 83,800 1,647 Total 17,382,962 11,416,938 5,966,024 8,944,116 The accompanying notes are an integral part of these financial statements F9 6 -1 -76 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2008 With Comparative Totals For the Year Ended December 31, 2007 2008 2007 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual RFP005 Alpine Gardens contribution 90,000 90,000 - 56,275 RFP006 Ford Park Master Plan - Improvements 1,581,340 - 1,581,340 18,660 RFP012 Ford Amphitheater Remodel - - 250,000 RMP001 VRD Agreements - - - 3,215 RMT001 Recreation path maintenance 384,262 325,114 59,148 73,364 RMT002 Tree maintenance 115,931 65,986 49,945 48,865 RMT005 Street furniture - Streetscape 26,143 14,178 11,965 15,857 RMT006 Black Gore Creek sand mitigation 184,000 93,431 90,569 100,000 RMT007 Bear -proof trash containers 2,578 - 2,578 196,922 RMT008 Donovan Park - Building 29,634 - 29,634 - RMT009 Park capital maintenance 125,229 124,368 861 79,771 RMT010 Stream tract mitigation 64,881 - 64,881 - RMT011 Retrofit Park Restrooms 78,659 58,075 20,584 93,745 RMT012 Forest Health Management 283,474 49,857 233,617 215,917 RMT013 Environmental Sustainability 83,000 55,507 27,493 192,989 RMT014 Turf Topdresser - - - 10,555 RMT015 Greenhouse 100,000 - 100,000 - RMT016 Ford Park/ Tennis Center Improvements 78,800 16,800 62,000 39,200 RMT018 Dobson Ice Arena 98,906 38,943 59,963 - RMT019 Gymnastics Center 29,611 1,338 28,273 RPA001 Property acquisition 551,019 - 551,019 - RPD001 Master Planning Process 79,543 73,128 6,415 24,957 RPDO05 Donovan Park - Lower Bench 15,409 466 14,943 33,641 RPDO06 Whitewater Park 48,325 27,948 20,377 327,675 RPDO09 Lionshead Park 1,067,000 720 1,066,280 - RPD011 Skate park 65,000 48,924 16,076 170,290 RPDO13 Kayak Take -out 10,000 - 10,000 - RP1001 Playground Safety Improvements (Red S.) 465,037 205 464,832 7,206 RP1002 Bighorn Improvements - - - 227,512 RP1003 Irrigation / Raw Water project 9,927 4,175 5,752 461 RP1006 Streamwalk & Safety Improvements 225,000 10,014 214,986 - RPT007 Trailhead signs /development 33,250 19,149 14,101 16,123 RPT010 Frontage Road Bike & Ped Paths 1,275,000 - 1,275,000 - RPT014 Cascade bike path 6,977 - 6,977 23 RPT015 Katsos Ranch bike path 346,887 223,020 123,867 679,056 RPT017 Timber Ridge - Buffehr Creek Separation 504,242 - 504,242 21,300 RRT001 Public Art 349,516 131,537 217,979 168,108 RRT003 ADA compliance 100,849 24,968 75,881 25,999 RSS002 Meadow Drive 1,050,000 638,212 411,788 720,000 RSS003 Seibert Circle 323,230 85,534 237,696 775,865 RSS004 Landscape Medians 570,000 16,502 553,498 - Total 10,452,659 2,238,099 8,214,560 4,593,551 The accompanying notes are an integral part of these financial statements F10 6 -1 -77 LOCAL HIGHWAY FINANCE REPORT 6 -1 -78 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350- 050 -36 City or Count Vail LOCAL HIGHWAY FII Al CE REPORT YEAR ENDING: December 2008 This Information From The Records Of (example - City of _ or County of_): Prepared By: Kathleen Halloran 1 Phone: 970- 479 -2116 L DISPOSITIOI OF HIGHWAY -USER REVEI UES AVAILABLE FOR LOCAL GOVERI MEI T EXPEI DITURE A. Local B. Local C. Receipts from D. Receipts from ITEM Motor -Fuel Motor - Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes IL RECEIPTS FOR ROAD Al D STREET PURPOSES III. DISBURSEMEI TS FOR ROAD Al D STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway -user taxes 1. Capital outlay (from page 2) 2,407,020.08 a. Motor Fuel (from Item LA.5.) 2. Maintenance: 2,840,928.54 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a. +b.) a. Traffic control operations 253,187.32 2. General fund appropriations 5,811,118.37 b. Snow and ice removal 1,120,228.28 3. Other local imposts (from page 2) 951,128 c. Other 4. Miscellaneous local receipts (from page 2) 0 d. Total (a. through c.) 1,373,415.60 5. Transfers from toll facilities 4. General administration & miscellaneous 290,392.55 6. Proceeds of sale of bonds and notes: 5. Highwav law enforcement and safety 1,067,442.60 a. Bonds - Original Issues 6. Total (1 through 5) 7,979,199.37 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 7. Total (1 through 6) 6,762,246.37 b. Redemption B. Private Contributions 1,012,238.00 c. Total (a. + b.) C. Receipts from State government 2. Notes: (from page 2) 204,715.00 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) - c. Total (a. + b.) E. Total receipts (A.7 + B + C + D) 7,979,199.37 3. Total (l.c + 2.c) C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 7,979,199.37 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 1. Bonds (Refunding Portion) B. I otes (Total) 0 V. LOCAL ROAD Al D STREET FUI D BALAI CE A. Beginning Balance B. Total Receipts C. Tota I Disbursements D. Ending Balance E. Reconciliation 7,979,199.37 7,979,199.37 (0.00) I otes and Comments: FORM FHWA -536 (Rev. 1 -05) PREVIOUS EDITIONS OBSOLETE (Next Page) Fl l Local Hwy Rpt 06 6 -1 -79 STATE: Colorado LOCAL HIGHWAY FII Al CE REPORT YEAR ENDING (mm /yy): December 2008 IL RECEIPTS FOR ROAD Al D STREET PURPOSES - DETAIL ITEM AMOUI T ITEM AMOUI T A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f Charges for Services 5. Specific Ownership & /or Other 951,128 g. Other Misc. Receipts 6. Total (1. through 5.) 951,128 h. Other c. Total (a.+ b.) 951,128 i. Total (a. through h.) 0 (Carry forward to page 1) (Carry forward to page 1) ITEM AMOUI T ITEM AMOUI T C. Receipts from State Government D. Receipts from Federal Government 1. Highway -user taxes 179,606 1. FHWA (from Item LD.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 25,109 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f Other Federal f Total (a. through e.) 25,109 g. Total (a. through f.) 0 4. Total (1. + 2. + 3.17) 204,715 3. Total (1. + 2.g) (Carry forward to page 1) III. DISBURSEMEI TS FOR ROAD Al D STREET PURPOSES - DETAIL ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a) (b) (c) A.I. Capital outlay: a. Right -Of -Way Costs 0 b. Engineering Costs 128,570 128,570 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 2,278,450 2,278,450 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4) 0 2,278,450 2,278,450 d. Total Capital Outlay (Lines La. + Lb. + 1.c.5) 0 2,407,020 2,407,020 (Carry forward to page 1) I otes and Comments: FORM FHWA -536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE F12 6 -1 -80 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE 6 -1 -81 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, III, and IV December 31, 2008 TABLE Debt Service Coverage 2004 2005 2006 2007 2008 Pledged Revenues 15,466,981 16,483,979 17,841,680 18,913,138 19,631,366 Maximum Annual Debt Service 2,324,457 2,324,457 2,324,457 2,324,457 2,324,457 Coverage Factor 6.65x 7.09x 7.68x 8.14x 8.45x TABLE III History of Town 4% Sales Tax Receipts 2004 2005 2006 2007 2008 Sales Tax Collections (see Note below) 15,466,979 16,483,979 17,841,680 18,913,138 19,631,366 Per Cent Increase 6.09% 6.58% 8.24% 6.01% 3.80% Note: The reported Sales Tax Collections vary from the sales tax revenues reported in the Town's audited financial statements because one -time payments of sales tax on, for example, the sale of business assets or the settlement of a sales tax claim, are not included above. TABLE IV Monthly Comparison of Collections of Sales Tax 12 -month Period Ended 12 -month Period Ended December 31, 2007 December 31, 2008 Percent Change Current Year Current Year Current Year Month Month To Date Month To Date Month To Date January 2,783,306 2,783,306 2,976,655 2,976,655 6.9% 6.9% February 2,718,643 5,501,949 3,071,615 6,048,270 13.0% 9.9% March 2,986,446 8,488,395 3,327,304 9,375,574 11.4% 10.5% April 1,330,740 9,819,135 1,098,918 10,474,492 -17.4% 6.7% May 545,874 10,365,009 622,103 11,096,595 14.0% 7.1% June 953,017 11,318,026 918,061 12,014,656 -3.7% 6.2% July 1,265,781 12,583,807 1,397,842 13,412,498 10.4% 6.6% August 1,162,746 13,746,553 1,349,795 14,762,293 16.1% 7.4% September 908,318 14,654,871 834,569 15,596,862 -8.1% 6.4% October 688,519 15,343,390 662,767 16,259,629 -3.7% 6.0% November 747,877 16,091,267 719,109 16,978,738 -3.8% 5.5% December 2,821,871 18,913,138 2,652,628 19,631,366 -6.0% 3.8% G1 6 -1 -82 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables V and VI December 31, 2008 TABLE V Sales Tax Collections by Principal Sales Tax Generators 2004 2005 2006 2007 2008 Annual Sales Tax Paid by Ten Principal Generators 4,996,562 5,401,230 5,886,609 6,123,462 6,404,706 Total Annual Sales Tax Collected by Town 15,466,979 16,483,979 17,841,680 18,913,138 19,631,366 % of Total Annual Sales Tax Collections Generated by Ten Principal Generators 32.3% 32.8% 33.0% 32.4% 32.6% TABLE VI Capital Projects Fund: 2008 Actual / Projected 2009 - 2012 2008 2009 2010 2011 2012 Revenues: Sales tax 8,171,920 7,540,000 8,187,126 8,457,926 8,677,526 Construction Use Tax 608,483 1,000,000 1,000,000 1,000,000 1,000,000 Employee Housing Fee - in - Lieu 529,481 48,000 48,000 48,000 48,000 Federal grants 815,577 1,400,000 4,428,000 600,000 - Lease revenue 188,160 188,550 192,300 192,300 192,300 Project reimbursment 982,360 - - - - Intergovernmental grants 53,600 Transfers in 516,000 - - - - Earnings on investments and other 553,768 18,750 59,431 21,399 58,356 Total Revenues 12,419,349 10,195,300 13,914,857 10,319,625 9,976,182 Expenditures: Land purchases - - - - - Equipment purchases 5,345,639 965,080 3,163,600 1,941,400 287,000 Maintenance 803,814 538,500 595,000 968,000 1,114,000 Buildings and improvements 782,599 810,000 1,420,000 1,536,000 1,285,000 Street projects 3,103,607 1,885,000 6,151,000 1,775,000 8,655,000 Housing programs 840,782 560,000 560,000 560,000 500,000 Lionshead redevelopment 103,588 - - - - Other improvements 436,909 30,000 410,000 360,000 280,000 Other Financing - - - - - Transfer to Vail Reinvestment Authority - 1,400,000 3,600,000 - - Transfer to Debt Service Fund 2,204,670 2,266,775 2,263,531 2,272,831 2,264,825 Total Expenditures 13,621,608 8,455,355 18,163,131 9,413,231 14,385,825 Revenues Over (Under) Expenditures (1,202,259) 1,739,945 (4,248,274) 906,394 (4,409,643) Beginning Fund Balance 12,109,128 10,906,869 12,646,814 8,398,540 9,304,934 Ending Fund Balance 10,906,869 12,646,814 8,398,540 9,304,934 4,895,291 G2 6 -1 -83 Town of Vail, Colorado Issuer's Annual Report Updateo of Official Statement Tables to be Updated Table XIX December, 31, 2008 TABLE XIX History of General Fund Revenues, Expenditures and Changes in Fund Balance 2004 2005 2006 2007 2008 Revenues: General sales taxes 8,881,480 8,796,600 9,345,660 10,741,500 11,640,000 Property and ownership taxes 2,621,493 2,627,877 2,931,347 3,012,030 4,309,622 Ski area lift ticket admissions tax 2,496,162 2,777,698 2,975,097 3,039,619 3,277,703 Franchise fees 676,538 842,529 862,220 858,285 1,052,665 Penalties and interest on delinquent taxes 23,111 22,014 22,108 19,348 22,544 Licenses and permits 1,685,277 2,552,470 3,561,757 5,083,017 3,903,026 Intergovernmental revenues 1,435,982 1,401,068 1,477,270 1,509,040 1,706,197 Charges for services 4,092,973 4,588,403 4,767,097 5,351,540 5,817,239 Fines and forfeits 210,497 215,105 286,197 347,090 396,707 Interest 172,806 428,851 820,136 984,040 571,072 Rents 803,939 780,214 827,280 897,958 949,961 Other 359,829 538,808 501,699 195,016 163,025 Total Revenues 23,460,087 25,571,637 28,377,868 32,038,483 33,809,761 Expenditures: General government 5,065,363 5,549,232 6,596,987 7,730,300 7,715,791 Public safety 5,885,632 6,309,595 6,534,712 7,104,904 7,624,590 Public works and transportation 8,252,331 9,312,136 9,625,653 10,365,091 11,779,063 Economic development and community assistance 1,175,574 1,024,207 1,183,645 1,461,991 1,703,092 Municipal library 657,952 658,886 664,856 752,031 828,056 Total Expenditures 21,036,852 22,854,056 24,605,853 27,414,317 29,650,592 Excess of Revenues Over Expenditures 2,423,235 2,717,581 3,772,015 4,624,166 4,159,169 Other Financing Sources (Uses): Sale of asset - - - - - Operating transfers in 27,435 29,300 Operating transfers out (1,773,800) (126,687) (2,012,772) (222,500) (991,000) Total Other Financing Sources (Uses) (1,746,365) (97,387) (2,012,772) (222,500) (991,000) Excess of Revenues Over Expenditures and Other Financing Sources (Uses) 676,870 2,620,194 1,759,243 4,401,666 3,168,169 Fund Balance: Beginning 10,376,744 11,053,614 13,673,808 15,433,051 19,834,717 Ending 11,053,614 13,673,808 15,433,051 19,834,717 23,002,886 G3 6 -1 -84 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables XX and XXI December 31, 2008 TABLE XX General Fund 2008 Budget Summary and Actual Comparison 1 2009 Budget 2008 Amended 2008 2009 Budget Actual Budget Revenues: General sales taxes 11,640,000 11,640,000 11,860,000 Property and ownership taxes 4,293,500 4,309,622 4,293,500 Resort fees 3,123,852 3,277,703 3,190,000 Franchise fees 926,110 1,075,209 899,935 Licenses and permits 3,501,950 3,903,025 1,755,200 Intergovernmental revenues 1,705,060 1,706,198 1,308,719 Charges for services 5,936,242 5,817,240 6,479,582 Fines and forfeits 259,000 396,707 260,000 Interest 585,000 571,072 495,000 Rents and other 954,207 1,112,985 854,300 Total 32,924,921 33,809,761 31,396,236 Expenditures: Town officials 1,259,823 1,224,007 1,298,703 Administrative 3,390,741 3,164,384 3,466,328 Community development 3,473,684 3,327,400 3,282,081 Public safety - Police 4,813,783 4,514,339 4,871,111 Public safety - Fire 2,570,563 2,577,087 2,769,703 Public works 3,606,971 3,717,159 3,726,449 Transportation & Parking 4,665,554 4,780,515 4,723,939 Facility maintenance 3,464,602 3,442,983 3,945,981 Public library 842,762 828,056 854,593 Contributions and special events 1,572,087 1,541,498 1,501,713 Dispatch service charges 535,657 533,164 543,072 Total 30,196,227 29,650,592 30,983,673 Revenue Over Expenditures 2,728,694 4,159,169 412,563 Other Financing Sources (Uses): Transfer (out) (991,000) (991,000) (375,000) Total Other Financing (Uses) (991,000) (991,000) (375,000) Excess of Revenues Over (Under) Expenditures and Other Financing (Uses) 1,737,694 3,168,169 37,563 Fund Balance - January 1 19,834,717 19,834,717 23,002,886 Fund Balance - December 31 21,572,411 23,002,886 23,040,449 TABLE XXI Outstanding Revenue Obligations Outstanding Issue Principal Sales Tax Revenue Refunding Bonds, Series 2008 6,300,000 Sales Tax Revenue Refunding Bonds, Series 20028 2,025,000 Housing Facilities Revenue Bonds, Series 2003A 19,025,000 Housing Facilities Revenue Bonds Subordinate, Series 20038 885,000 Total 28,235,000 G4 6 -1 -85 SINGLE AUDIT REPORTS AND SCHEDULES 6 -1 -K6 MCMAHAN AND ASSOCIATES, L. L.C. Certified Public Accountants and Consultants WEB SITE: WWW.MCMAHANCPA.COM SUITE 222 /AVON CENTER TELEPHONE: (970) 845 1 00 WEST BEAVER CREEK BLVD. FACSIMILE: (970) 845 - 085 1 P.O. BOX 5850 AVON, CO 81620 E - MAIL: MCMAHAN @MCMAHANCPA.COM REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS To the Mayor and Members of Council Town of Vail, Colorado Vail, Colorado We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of Town of Vail, Colorado (the "Town ") as of and for the year ended December 31, 2008, which collectively comprise the Town's basic financial statements and have issued our report thereon dated May 15, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Town's internal control over financial reporting in as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with general accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Performing services for local governments throughout Colorado D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Members: American Institute of Certified Public Accountants /Colorado Society of Certified Public Accountants National and Colorado Government Finance Officers Association /Colorado Municipal League 6 -1 -8HI To the Mayor and Members of Council Town of Vail, Colorado Vail, Colorado This report is intended solely for the information and use of management, others within the entity, federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. A A401'_ a-J kv_t- �A McMahan and Associates, L.L.C. May 15, 2009 6 -1 - " 2 MCMAHAN AND ASSOCIATES, L. L.C. M Certified Public Accountants and Consultants WEB SITE: WWW.MCMAHANCRA.COM SUITE 222 /AVON CENTER TELEPHONE: (970) 845 - 8800 1 00 WEST BEAVER CREEK BLVD. FACSIMILE: (970) 845 1 A g P.O. BOX 5850 AVON, CO 8 1 620 E - MAIL: MCMAHAN@Q MCMAHANCPA.COM REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 To the Mayor and Members of Council Town of Vail, Colorado Vail, Colorado Compliance We have audited the compliance of the Town of Vail, Colorado (the "Town ") with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) CircularA -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2008. The Town's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Town's management. Our responsibility is to express an opinion on the Town's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Town's compliance with those requirements. In our opinion, the Town of Vail, Colorado complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2008. Internal Control Over Compliance The management of the Town is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Town's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control over compliance. Accordingly, we do no express an opinion on the effectiveness of the Town's internal control over compliance. Performing services for local governments throughout Colorado D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Members: American Institute of Certified Public Accountants /Colorado �Society of Certified Public Accountants National and Colorado Government finance Officers Association /Colorado Municipal League 6 -1 -R3 To the Mayor and Members of Council Town of Vail, Colorado Vail, Colorado A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use management, federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. 196AA4 4AAJ McMahan and Associates, L.L.C. May 15, 2009 6 -1 -444 Town of Vail, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2008 Part I: Summary of Auditor's Results Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: Material weakness identified None noted Reportable condition identified that is not considered to be material weaknesses None reported Noncompliance material to financial statements noted None noted Federal Awards Internal control over major programs: Material weakness identified None noted Reportable conditions identified that is not considered to be material weaknesses None reported Type of auditor's report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A -133 None noted Major program — Discretionary Funding Section 5309 CFDA #20.500 Dollar threshold used to identify Type A from Type B programs $300,000 Identified as low -risk auditee No Part II: Findings Related to Financial Statements Findings related to financial statements as required by Government Auditing Standards None noted Auditor - assigned reference number Not applicable Part III: Findings Related to Federal Awards Internal control findings None noted Compliance findings None noted Questioned costs None noted Auditor - assigned reference number Not applicable H5 6 -1 -91 Town of Vail, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2008 (Continued) Note: There were no findings for the fiscal year ended December 31, 2007. H6 6 -1 -92 Town of Vail, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2008 Federal CFDA Major Program Title Number Program Expenditures Federal Transportation Agency Discretionary Funding Section 5309 20.500 Yes 815,577 Total - Federal Transportation Agency 815,577 Department of Justice: Bulletproof vest program 16.607 No 2,807 Passed through Colorado Department of Criminal Justice: Law Enforcement Assistance 16.305 No 20,838 Total - U.S. Department of Justice 23,645 Total 839,222 Notes to the Schedule of Expenditures of Federal Awards for the year ended December 31, 2008 Note 1. Basis of Presentation: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Vail and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Note 2. Sub - recipients: The Town of Vail did not provide any federal funds listed in the Schedule of Expenditures of Federal Awards to sub - recipients. The accompanying notes are an integral part of these financial statements. H7 6 -1 -9; Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Award Roadway Slurry Seal Maintenance Contract. PRESENTER(S): Tom Kassmel ACTION REQUESTED OF COUNCIL: Authorize the Town Manager to enter into an agreement with A -1 Chipseal Company to complete the 2009 Capital Street Maintenance Slurry Seal Project. BACKGROUND: Staff has received bids from three contractors for the 2009 Capital Street Maintenance Slurry Seal Project, with A -1 Chipseal Company being the low bidder. The project was publically bid using Bid Bridge, a reverse auction public bid process. This is the first time Vail has used this type of reverse auction process, as a result of a presentation made by Bid Bridge last fall. The process was successful and resulted in a low bid, well below the budgeted estimate. The following are the three final bids: A -1 Chipseal Company $137,687.90 Quality Resurfacing Co $139,700.50 Intermountain slurry seal $173,500.00 STAFF RECOMMENDATION: Authorize the Town Manager to enter into an agreement with A -1 Chipseal Company to complete the 2009 Capital Street Maintenance Slurry Seal Project, in the amount of $137,687.90. ATTACHMENTS: Bid Histrory Graph Bid Bridge Event History Report Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: First reading of Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto. PRESENTER(S): Bill Gibson ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 12, Series of 2009, on first reading. BACKGROUND: On May 5, 2009, the Town Council tabled the first reading of Ordinance No. 12, Series of 2009, to its June 2, 2009, hearing by vote of 5 -1 -0 (Foley opposed). STAFF RECOMMENDATION: The Planning and Environmental Commission recommends that the Town Council approves, on first reading, Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto. ATTACHMENTS: Town Council memo Ordinance No. 12, Series of 2009 Applicant request Development Plan MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: June 2, 2009 SUBJECT: First reading of Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto. (PEC080074) Applicant: Christopher Galvin, represented by K.H. Webb Architects and Mauriello Planning Group Planner: Bill Gibson I. DESCRIPTION OF THE REQUEST The applicant, Christopher Galvin, represented by K.H. Webb Architects and Mauriello Planning Group, is requesting a first reading of Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto. The existing Vail Row Houses were originally developed under Eagle County jurisdiction as a townhouse development with individually subdivided lots. The subject properties were subsequently annexed by the Town of Vail and zoned High Density Multiple - Family (HDMF) District. The HDMF District is intended to regulate multi -unit condominium style developments with a single, common development site. The HDMF District was not intended to regulate townhouse style develop; and therefore, the existing Vail Row Houses are legally non - conforming in regard to many of the HDMF standards. The purpose of the proposed special development district is to create a "townhouse" style zoning for the Vail Row Houses and to facilitate future conforming redevelopment. II. BACKGROUND The Planning and Environmental Commission held work sessions to discuss this request at its December 22, 2008, and March 9, 2009, public hearings. On April 13, 2009, the Planning and Environmental Commission voted 5 -0 -0 to forward a recommendation of approval to the Town Council for the proposed special development district. On May 5, 2009, the Town Council discussed this proposed ordinance and tabled the first reading until its June 2, 2009, public hearing. Since the Council May 5th discussions, the applicant has amended their request to further address the concerns noted by the Council. The amendments include the follow: • The applicant is no longer requesting an east side setback deviation for Lot 13. The setback for Lot 13 will remain the existing 20 foot minimum. • The applicant is proposing that upon redevelopment each individual lot will be required to reduce the number of dwelling units of the lot to only one. This 1 K -t -t requirement will eliminate the need for future additional parking spaces, so the applicant's previous proposal to provide payments -in -lieu or off -site deeded parking spaces has been withdrawn. • The applicant is now proposing to further limit the allowable building height adjacent to Gore Creek Drive from the previously proposed 45 feet to 35 feet. • The applicant is proposing that upon redevelopment each individual lot will make a $10,000 contribution to the Town of Vail for public art or improvements to Roger Staub Park. Theses proposed amendments have been integrated into the attached Ordinance No. 12, Series of 2009. II. STAFF ANALYSIS Staff believes the applicant's recent amendments to the proposed special development district application addresses some of the concerns expressed by the Council at its May 5 th hearing; however, Staff still has concerns about elements of the proposal as outlined in Staff's April 13, 2009, memorandum to the Planning and Environmental Commission. Staff supported the applicant's original proposal to create a special development district intended to create a more efficient development review process for future renovations to The Vail Row Houses. This original application did not propose any increases to the existing development potential for the subject properties or significant deviations from the Town's adopted review process or land use policies. During the course of the Planning and Environmental Commission's review, the applicant amended the proposal to include increases to the allowable development potential of The Vail Row Houses by increasing the GRFA limits (gross residential floor area) for each of the subject lots and proposing encroachments by the Lot 13 unit into the required eastern side setback adjacent to Roger Staub Park. Since the Council's May 5 th hearing, the applicant has withdrawn the request to allow the Lot 13 unit to encroach into the existing eastern setback requirement. In addition to proposing deviations to the zoning standards for The Vail Row Houses, the applicant is also proposing deviations from the special development district implementation and review procedures established by the Town Code. The proposed ordinance will grant permanent development standard deviations to The Vail Row Houses (landscape area deficiencies, parking space encroachments into Gore Creek Drive, deck/patio encroachments into the Gore Creek required setbacks, etc.) which in practice will exempt these deviations from the requirements of Chapter 12 -18, Nonconforming Sites, Use, Structures, and Site Improvements, Vail Town Code. The Town of Vail will be unable to require these existing nonconformities to become more conforming, or fully conforming, through the review of future redevelopment applications. The proposed ordinance will allow the existing parking space encroachments within the Town owned Gore Creek Drive Right -of -Way in perpetuity. While the proposed ordinance requires the lot owners to obtain Revocable Right -of -Way Permits, in practice those permits will not be revocable by the Town. Staff believes the Council should consider memorializing these permanent encroachments into the right -of -way through the sale or dedication of this property to The Vail Row Houses or with the establishment of a permanent parking and access easement, rather than through a non - revocable Revocable Right -of -Way Permit. In Section E of the ordinance the applicant is proposing to allow the consolidation of 2 ti -1 3 dwelling units on the individual lots of the Vail Row Houses without any future amendments to the proposed special development district. This is a deviation from the amendment and public notice requirements for special development districts established by Section 12- 9A -10, Amendment Procedures, Vail Town Code, which require both Planning and Environmental Commission and Town Council review and approval for any change in the number of dwelling units in a special development district. In Section J of the ordinance the applicant is proposing that the approval of this special development district has no expiration. This is a deviation from Section 12- 9A -12, Time Requirements, Vail Town Code, which establishes a three year time limit for beginning the construction of any special development district. This section then establishes a one year time limit for the beginning of subsequent phases of a special development district. The Planning and Environmental Commission and the Town Council may grant approval of the "reestablishment" of special development districts that do not meet these time requirements. In Section J of the ordinance the applicant is proposing that future amendments to this special development district that affect only one lot will not require written approval from the other owners within the district. This is a deviation from the Town's established joint property owner approval policies. As a condition of approval, the applicant is proposing that each lot owner will contribute $10,000 (a total of $70,000 for The Vail Row Houses) to the Town of Vail for either public art or improvements to the adjacent Roger Staub Park prior to the issuance of a building permit for additions to an individual unit. The applicant is not proposing a single upfront contribution, but instead a series of seven individual contributions which may, or may not, occur over a period of time. Staff has concerns that these payment requirements may need to be tracked over a period of many years. Also as a condition of approval, the applicant is proposing that the owner of Lot 13 dedicate a portion of property to the Town of Vail. The Council needs to be aware that the applicant is proposing that the Town's use of this property be limited to passive outdoor recreation uses. Pursuant to Chapter 12 -2, Definitions, Vail Town Code, passive outdoor recreation is defined as "outdoor recreation activities which involve unstructured recreation which does not require facilities or special grounds. Passive outdoor recreation would include: picnicking, fishing, walking, hiking, cross country skiing, informal playing fields, etc." III. PLANNING AND ENVIRONMENTAL COMMISSION RECOMMENDATION The Planning and Environmental Commission forwarded a recommendation of approval to the Town Council for the establishment of the proposed special development district, and setting forth details in regard thereto. Should the Town Council choose to approve this request, the Planning and Environmental Commission recommended the Town Council passes the following motion: "The Town Council approves, on first reading, Ordinance No. 12, Series of 2009, an ordinance establishing Special Development District No. 41, the Vail Row Houses, pursuant to Article 12 -9A, Special Development (SDD) District, Vail Town Code, and setting forth details in regard thereto." Should the Town Council choose to approve this request; the applicant requests the Town Council applies the following condition(s) based upon the applicant's amended 3 ti_l_; proposal: 1. "Prior to the addition of GRFA to any dwelling unit within The Vail Row House SDD, the owner of Lot 13 shall dedicate the 915 sq. ft. (10 -foot wide) strip of land as indicated on the Approved Development Plan located on the east side of Lot 13 to the Town of Vail. This dedication shall be processed as part of a subdivision application for Lot 13. The 915 sq. ft. dedication shall be restricted to passive park use. 2. The applicant agrees that The Vail Row Houses shall provide $70,000 to the Town of Vail to be used for public art or Roger Staub park improvements, at the Town's discretion. The funds will be provided by individual property owners prior to receiving a building permit for redevelopment of and the addition of GRFA to individual properties at a rate of $10,000 per lot." Should the Town Council choose to approve this request, the Planning and Environmental Commission recommended the Town Council makes the following findings: "Based upon the review of the criteria outlined in Section IV of Staff's April 27, 2009, memorandum and the evidence and testimony presented, the Town Council finds: 'I. That the SDD complies with the standards listed in subsection A of this section, and that a practical solution consistent with the public interest has been achieved; and 2. That the SDD is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and 3. That the SDD is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and 4. That the SDD promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. " IV. ATTACHMENTS A. Ordinance No. 12, Series of 2009 B. Applicant's amended request, dated May 19, 2009 4 ti -1 -4 ORDINANCE NO. 12 Series of 2009 AN ORDINANCE ESTABLISHING SPECIAL DEVELOPMENT DISTRICT NO. 41 THE VAIL ROW HOUSES, PURSUANT TO ARTICLE 12 -9A, SPECIAL DEVELOPMENT (SDD) DISTRICT, VAIL TOWN CODE, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, Article 12 -9A, Special Development (SDD) District, Vail Town Code, sets forth the procedures for establishing special development districts; and WHEREAS, The Vail Row Houses, have submitted an application to the Town of Vail to establish Special Development District No. 41, The Vail Row Houses, to facilitate the redevelopment of an existing residential development; and WHEREAS, The Vail Row Houses, was originally developed under the jurisdiction of Eagle County in 1963 and platted as "townhouses" and later zoned High Density Multiple Family Residential by the Town of Vail; and WHEREAS, the High Density Multiple Family Residential zone districtwas modified overthe years directed at larger parcel multiple family projects rendering the Vail Row Houses nonconforming with respect to numerous zoning standards; and WHEREAS, the proposed SDD will create "townhouse" style zoning on the property and allow it to be a conforming use and development; and WHEREAS, the Planning and Environmental Commission of the Town of Vail held a public hearing on April 13, 2009, on the application to establish Special Development District No. 41, The Vail Row Houses, in accordance with the provisions of the Vail Town Code; and WHEREAS, the Planning and Environmental Commission of the Town of Vail has forwarded a recommendation of approval by a vote of 5 -0 -0 of this request to establish Special Development District No. 41, The Vail Row Houses, to the Vail Town Council; and WHEREAS, the Vail Town Council finds and determines that the request to establish Special Development District No. 41, The Vail Row Houses, complies with the design criteria prescribed in Title 12, Zoning Regulations, Vail Town Code, and that a practical solution consistent with the public interest has been achieved. WHEREAS, the Vail Town Council finds and determines that the request to establish Special Development District No. 41, The Vail Row Houses, is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and WHEREAS, the Vail Town Council finds and determines that the request to establish Special Development District No. 41, The Vail Row Houses, is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and WHEREAS, the Vail Town Council finds and determines that the request to establish Special Development District No. 41, The Vail Row Houses, promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. Ordinance No. 12, Series of 2009, first reading 1 8 -2 -1 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. District Established Special Development District No. 41, The Vail Row Houses, is established for redevelopment on 7 parcels of land, legally described as Lots 7 though 13, a Resubdivision of Block 5 and a part of Gore Creek Drive, Vail Village First Filing, which comprises 7 lots and a total of 20,997 square feet (0.48 acres) in the Vail Village area of the Town of Vail plus the 915 sq. ft. portion of Lot 13 to be dedicated to the Town of Vail for park use as a condition of this approval. Said parcels may be referred to as "SDD No. 41 ". Special Development District No. 41 shall be reflected as such on the Official Zoning Map of the Town of Vail. The underlying zoning for Special Development District No. 41, The Vail Row Houses, shall be High Density Multiple Family (HDMF) District. Section 2. Special Development District No. 41, The Vail Row Houses, Approved Development Plan An approved development plan and this ordinance are the principal documents in guiding the development, uses and activities of a special development district. The Approved Development Plan for Special Development District No. 41, The Vail Row Houses, shall be comprised of materials submitted in accordance with Section 12 -9A -5 of the Vail Town Code including those plans prepared by KH Webb Architects, entitled Vail Rowhouses Site Plan A001, revisions dated 04.28.09. Section 3. Development Standards In conjunction with the Approved Development Plan described in Section 2 herein, the following development standards are hereby adopted by this ordinance. The development standards for Special Development District No. 41, The Vail Row Houses, are described below: The development standards as outlined below apply to the individual lots (Lots 7 through 13) of the Vail Row Houses, as modified for this SDD: A. Permitted, Conditional, and Accessory Uses: The permitted, conditional, and accessory uses allowed in Special Development District No. 41, The Vail Row Houses, shall be those uses listed in Title 12, Chapter 6, Article H, High Density Multiple Family zone district, Vail Town Code, as may be amended from time to time. B. Lot Area and Site Dimensions: The minimum size for each lot shall be as each lot exists today, as further described on the Approved Development Plan; however, allowing for minor changes to lot lines to correct any encroachments. The following minimum size for Lot 13 is based upon a 915 sq.ft. land dedication to the Town of Vail. Lot# Lot size 7 2,744 8 2,614 9 2,396 10 2,265 11 2,309 12 2,919 13 4,835 TOTALS 20,997 Ordinance No. 12, Series of 2009, first reading 2 8 .2.2 The minimum site dimensions for each lot shall be as each lot exists today as further described on the Approved Development Plan; however, allowing for minor changes to lot lines to correct any encroachments. C. Setbacks: The minimum setbacks for Special Development District No. 41, The Vail Row Houses, shall be as indicated on the Approved Development Plan. The minimum front and rear setback shall be 20 ft. The minimum side setback shall be zero feet, except for Lot 13, which shall maintain a minimum setback of 10 ft. from the new eastern property line (based on the new property line following the 10 ft. land dedication for a total of 20' to the original lot line). The 50 ft. steam setback from Gore Creek shall be maintained. Balconies, decks, terraces, and other similar unroofed features may project into the required setback areas in accordance with Section 14 -10 -4, Architectural Projections, Decks, Balconies, Steps, Bay Windows, etc., Vail Town Code. All existing decks and patios may remain as exists today, as further described on the Approved Development Plan, and may be rebuilt as necessary in their existing configuration. D. Height: For a sloping roof, the height of buildings shall not exceed 48 ft. However, additional height restrictions apply to the front (southern facade) to maintain the appearance of a 2 -3 story building along Gore Creek Drive. The eave height is limited to 35 ft. to the initial eave of the front facade along Gore Creek Drive, measured from finished grade. Eave height is defined as the distance from finished grade to the top of the sheathing of the initial primary eave of the structure. E. Density Control: No more than 150 sq. ft. of GRFA shall be permitted for each 100 sq. ft. of total site area of each lot. Due to the increase in allowable GRFA, the Vail Row Houses is not eligible for the "Additional 250" or Interior Conversions as described in 12 -15 -5: ADDITIONAL GROSS RESIDENTIAL FLOOR AREA (250 ORDINANCE) and 12 -15 -04 INTERIOR CONVERSIONS. Lot 13 is further restricted to a total of 6,770 sq. ft. of GRFA. GRFA and Density for each lot shall not exceed the following: Lot # GRFA Density Lot 7 4,116 2 du Lot 8 3,921 2 du Lot 9 3,594 1 du Lot 10 3,397 2 du Lot 11 3,463 2 du Lot 12 4,378 2 du Lot 13 1 6,770 2 du However, any lot that is redeveloped shall be reduced in the number of units in order to comply with on -site parking requirements. In any case, the total number of units for Lots 7 through 13 shall not exceed 13 dwelling units. If any of the units are consolidated into fewer units on an Ordinance No. 12, Series of 2009, first reading 3 8 -2 -3 individual lot, no amendment to this SDD shall be required. However, if any of the units are consolidated into fewer units, the number of consolidated units shall become the maximum allowable density for both the subject individual lot and the entire development site. If any lots are consolidated, GRFA for the consolidated lot shall be a total of the allowable GRFA for each lot. F. Site Coverage: Site coverage shall not exceed 55% of the total site area of each lot, with the additional restriction that above -grade site coverage shall not exceed 50% of the total site area of each lot. Above grade shall mean from grade level or entry level and above at the south elevation of the buildings. G. Landscaping and Site Development: At least 20% of the total site area of each lot shall be landscaped, except for Lots 11 and 12. Lots 11 and 12 shall have no net loss of landscape area. The following is the existing landscape area of each lot. Landscape Landscape Lot # Sq. Ft. Percentage Lot 7 857 32% Lot 8 796 30% Lot 9 658 28% Lot 10 624 27% Lot 11 428 12% Lot 12 160 7% Lot 13 1 2,119 44% Because of the minimal opportunity for landscaping, when redevelopment of a lot occurs, the parking surface of the lot shall be converted to concrete unit pavers or other material (as approved by the Design Review Board) and a snowmelt system shall be installed. H. Parking and Loading: Parking requirements shall be based on the current number of parking spaces and dwelling units. Lot 7 2 du 2 parking spaces Lot 8 2 du 2 parking spaces Lot 9 1 du 2 parking spaces Lot 10 2 du 2 parking spaces Lot 11 2 du 2 parking spaces Lot 12 2 du 2 parking spaces Lot 13 2 du 1 4 parking spaces If any dwelling units are eliminated, there shall be no fewer than 2 parking spaces for each lot. Due to site constraints, there is no requirement for enclosed or screened parking. The parking is permitted to be located within the front setback, and partially within the Town of Vail right -of -way as it exists currently. A revocable right -of -way permit shall be obtained for improvements within the right -of -way. Ordinance No. 12, Series of 2009, first reading 4 8 -2 -4 When a unit is redeveloped or the addition of GRFA occurs, the parking requirements as provided in Section 12- 10 -10A of the Town Code for the subject lot shall be satisfied onsite (with right -of -way encroachments as currently exist). I. Employee Housing: Employee Housing shall be provided in accordance with Chapter 24: Inclusionary Zoning. Due to site constraints, the inclusionary zoning requirement shall be met through the fee -in -lieu or the provision of off -site employee housing unit(s). The Vail Row Houses shall provide an additional 5% of mitigated floor area or equivalent pay in -lieu amount over the requirements of Chapter 24, Inclusionary Zoning, as may be adjusted from time to time. J. Expiration and Amendment: This SDD is established to set zoning standards forthe future redevelopment of individual dwelling units within the SDD. Therefore, the SDD does not expire and will continue to provide the zoning standards into the future. Nothing herein prevents an amendment to the SDD by any owner within the SDD. If an amendment only affects the applicant's property, no written consent is required from other owners within the SDD. Section 4. Conditions of Approval The following conditions of approval shall become part of the Town's approval of the establishment of Special Development District No. 41, The Vail Row Houses: 1. Prior to the addition of GRFA to any dwelling unit within The Vail Row House SDD, the owner of Lot 13 shall dedicate the 915 sq. ft. (10 -foot wide) strip of land as indicated on the Approved Development Plan located on the east side of Lot 13 to the Town of Vail. This dedication shall be processed as part of a subdivision application for Lot 13. The 915 sq. ft. dedication shall be restricted to passive park use. 2. The applicant agrees that The Vail Row Houses shall provide $70,000 to the Town of Vail to be used for public art or Roger Staub park improvements, at the Town's discretion. The funds will be provided by individual property owners prior to receiving a building permit for redevelopment of and the addition of GRFA to individual properties at a rate of $10,000 per lot." Section 5. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Vail Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 6. The Vail Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. The Council's finding, determination and declaration is based upon the review of the criteria prescribed by the Town Code of Vail and the evidence and testimony presented in consideration of this ordinance. Ordinance No. 12, Series of 2009, first reading 5 8 -2 -5 Section 7. The amendment of any provision of the Town Code of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 8. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 5 th day of May, 2009 and a public hearing for second reading of this Ordinance set for the 19 day of May, 2009, at 6:00 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 12, Series of 2009, first reading 6 8 -2 -6 � I lk Mauriello Planning Group May 19, 2009 Town Council Town of Vail 75 South Frontage Road Vail, Colorado 81657 Re: Revised Vail Row Houses SDD Proposal Dear Council Members: At the hearing on the Vail Row Houses Special Development District held on May 5, 2009 the Town Council tabled the first reading of the ordinance in order to allow the applicant to address the concerns expressed about the application. This letter summarizes our modifications to the application to address the concerns expressed by Town Council. We believe that the changes detailed below strengthen the application and provide significant benefits to the Town as well as addressing the nonconformities created by changes that have occurred over time to the zoning regulations. We believe the revised proposal creates a development scenario as originally envisioned for the property and as supported by the Vail Village Master Plan. Modifications: A. Setback on Lot 13. The current zoning on the property requires a side setback of 20'. As developed there are currently zero side setbacks on the west side and between each of the units, as one would expect with a townhouse development. Our previous proposal dedicated a 10' wide strip of land to the Town to be added to the adjacent Roger Staub Park and then allowed a 2' setback from the new property line. The effect was a 12' setback to the current park. There were concerns expressed at the hearing with regard to this setback and the impact decreasing the setback would have on existing trees on the west side of the property. To address the setback and impacts to the trees, the application has been revised to require the full 20' setback (no longer a deviation) from the current property line. Additionally, the applicant is still proposing to dedicate a 10' strip of land to the Town to add to the park area. B. Density. All but one of the lots currently contain two dwelling units. The effect of having two dwelling units on a lot is the requirement for parking is a minimum of three P •: Office 970 970 . 0377 .. parking spaces. Only two lots currently meet this parking requirement. Concern was raised about allowing this density and nonconforming parking to continue forever. To address this density and parking issue, the application has been modified to require that with the redevelopment on any lot and the addition of GRFA, the density of the property shall be reduced to meet the parking requirements of the uses on the property. In most cases this will be a reduction from two dwelling units per lot to one unit with the requirement for 2 parking spaces, per code. C. Parking. As mentioned in B above, all properties are required to meet the number of parking spaces required for the uses located on the property. The option for pay -in -lieu or the deeding of a space in the Founders Garage has been removed from the application. Therefore, no deviation to parking requirements is required for the application. D. Building Height. The current building height allowed in this zone district is 48'. The Vail Village Master Plan recommends 3 to 4 stories in this zone district. The previous proposal maintained the 48' height limit but proposed an initial eave height along Gore Creek Drive of 45'. To address the concern about the visual impact of building height along Gore Creek Drive, the application has been revised to limit the initial eave height to 35' to maintain a 3 -story fagade along Gore Creek Drive. This reduces allowed building height along Gore Creek Drive by 13' beyond what is permissible today and will create an appropriate scale along the south elevation of the site. E. Public Art/ Park Improvements. At the hearing there was discussion regarding the public benefits of the project and it was suggested that a $70,000 contribution towards public art or Roger Staub park improvements might be appropriate. The application has been revised to include a $70,000 contribution to the Town for public art or park improvements, at the discretion of the Town. Each lot will be responsible for a $10,000 contribution upon receiving a building permit for redevelopment. The proposal still includes a 50% increase in the required employee housing requirements under inclusionary zoning, the 915 sq. ft. land dedication to the Town, the reduction in allowable site coverage (reduced bulk and mass), and the requirement to upgrade parking areas to pavers. Based on the changes made to the application, the only deviations being sought are allowing what exists today on the property (zero internal setbacks between units, landscape area, P.O. •: Office 970.748.0920 .. minimum lot size, and density) and an increase in GRFA consistent with the original zoning on the property (i.e., 1.5 FAR). We believe the benefits of the project outweigh and reduce the impacts to the community. We hope that you agree and can grant approval to this proposed SDD. Sincerely, � Dominic F. Mauriello, AICP Principal • • CO Office 970 .. o. 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A001 Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Ordinance No. 15, Series of 2009 an Ordinance Defining Electronic Personal Assistive Mobility Device ( "EPAMD "); Establishing Regulations Regarding the Operation of Such Devices in the Town of Vail; and Setting Forth Details in Regard Thereto. PRESENTER(S): Matt Mire ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 15, Series of 2008, on first reading. BACKGROUND: See Staff Memorandum. STAFF RECOMMENDATION: Approve, approve with modifications, or deny Ordinance No. 15, Series of 2008, on first reading. ATTACHMENTS: Electronic Personal Assistive Mobility Devices on Vail Recreation Paths Memorandum Ordinance No. 15, Series of 2009 MEMORANDUM TO: Vail Town Council FROM: Town Staff DATE: June 2, 2009 SUBJECT: Ordinance amendment allowing Electronic Personal Assistive Mobility Devices on Vail Recreation Paths Background It has been requested that the Town of Vail amend TITLE 7, MOTOR VEHICLES AND TRAFFIC, VAIL TOWN CODE to allow the use of Electronic Personal Assistive Mobility Devices (EPAMDs) on the town's recreation paths. The current ordinance prohibits motorized vehicles. During the May 19, 2009 Town Council meeting, staff was directed to prepare an amended ordinance. An ordinance is attached. Several issues have been raised and are outlined below. Private, State, and Federal Property Vail's recreation path system consists of detached recreation trails, attached bicycle lanes and residential streets. Various sections of the system fall on town -owned property, private property, and Colorado Department of Transportation /Federal Highway Administration (CDOT /FHWA) property. Staff recommends that the proposed ordinance should address only portions of the system that fall on town -owned property and right -of -way. The attached map outlines portions of the path system that fall on private or CDOT /FHWA property. Town -owned Property Residential streets throughout Vail, pedestrian areas of Vail Village, some pedestrian areas within Lionshead and the majority of the Gore Valley Trail east of Golden Peak as well as parks and open space areas. Bighorn Road east of the East Vail Exit is town -owned right -of -way. Private Property The Gore Valley Trail through the Cascade Village area; through the Lionshead, Vista Bahn and Golden Peak base areas; and the Front Door and Arabelle are the most notable sections of path through private property. Some of the easement agreements allowing the recreation path route through private property specifically prohibit "motorized vehicles of all types." CDOT /FHWA The Gore Valley Trail west of Donovan Park through Dowd Junction, the North Recreation Path from West Vail to Main Vail and several short sections of the paths east of Vail Village fall within 1 -70 right -of -way. It is possible that due to the new state law prohibiting the use of EPAMDs on recreation paths, that CDOT and the FHWA could prohibit their use within 1 -70 right -of -way. The new state law does prohibit their use on all portions of the State Highway system which would include the Vail Frontage Roads west of the East Vail exit. The Dowd Junction section of the Gore Valley Trail falls outside of Town of Vail boundaries in unincorporated Eagle County and in CDOT /FHWA Right of Way. 9 -1 -1 Recommended Prohibited Areas Due to various potential conflicts, safety issues and maintenance concerns, staff recommends that the use of EPAMD's should be specifically prohibited in the following town -owned areas: 1. Ford Park 2. Vail Nature Center 3. Betty Ford Alpine Garden 4. Village Streamwalk (currently pedestrian only) 5. Covered Bridge 6. All children's playgrounds 7. All turf areas 8. All natural /unimproved areas Other Prohibitions Staff recommends operating EPAMD's should be prohibited within certain special events and large gatherings such as the 4 th of July Parade route, Teva Games, Oktoberfest and other such events as determined. Other Policy Concerns • Vail adopted the Regional Trails Plan in 2001. The plan references a "non- motorized trail system ". However, there is no agreement between the town and ECO Trails that specifically excludes the use of motorized vehicles. • Staff will plan to monitor the use of EPAMDs throughout the summer in order to address any conflicts and concerns that may arise. Staff Recommendations Discuss and finalize the list of prohibited areas and other prohibitions. 9 -1.21 ORDINANCE NO. 15 SERIES OF 2009 AN ORDINANCE DEFINING ELECTRONIC PERSONAL ASSISTIVE MOBILITY DEVICE ( "EPAMD "); ESTABLISHING REGULATIONS REGARDING THE OPERATION OF SUCH DEVICES IN THE TOWN OF VAIL; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail, in the County of Eagle and State of Colorado (the "Town "), is a home rule municipal corporation duly organized and existing under laws of the State of Colorado and the Town Charter (the "Charter "); and WHEREAS, the members of the Town Council of the Town (the "Council ") have been duly elected and qualified; and WHEREAS, the Town promotes alternative transportation modes that are environmentally friendly and that reduce society's dependence on fossil fuels; and WHEREAS, by the provisions of this Ordinance, the Town desires to: (a) define Electric Personal Assisted Mobility Device; Declare such vehicles as exempt from motor vehicle traffic laws except as provided in the Ordinance; implement regulations for the operation of EPAMDs in the Town of Vail; and WHEREAS, the Town Council finds and determines that the public health, safety, and welfare will be served by the adoption of this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. DEFINITIONS Electronic Personal Assistive Mobility Device (EPAMD) means a self - balancing, nontandem two - wheeled device, designed to transport only one person, which is powered solely by an electronic propulsion system producing an average power output of no more than seven hundred fifty watts. Section 2. OPERATION OF EPAMDs AUTHORIZED Except as provided by this Ordinance, the operation of EPAMDs in the Town shall be exempt from the Model Traffic Code, as adopted by the Town of Vail, and such other Town ordinances that regulate motorized vehicles in Town. Section 3. EPAMD OPERATION, PARKING AND EQUIPMENT REGULATIONS For the purposes of operation, parking, and equipment and subject to the additional regulations set forth in this Ordinance, EPAMDs shall be considered bicycles and shall be subject to the provisions and regulations concerning bicycles contained in the Model Traffic Code, as adopted by the Town of Vail. Ordinance No. 15, Series of 2009 9 -'- -1 Section 4. RESTRICTIONS ON THE OPERATION OF EPAMDs A. It shall be unlawful for any person to operate EPAMDs in the following public areas: (1) Ford Park (2) Vail Nature Center (3) Betty Ford Alpine Garden (4) Village Streamwalk (currently pedestrian only) (5) Covered Bridge (6) All children's playgrounds (7) All turf areas (8) All natural /unimproved areas [NOTE: These areas should be further defined and described by exhibit for 2nd reading after Town Council discussion on June 2nd] B. The Rider of an EPAMD shall have all the same rights and duties as an operator of any other vehicle pursuant to C.R.S. Article 4, Title 42, except as to those provisions that by their nature have no application and have not otherwise been lawfully amended by this Ordinance. Section 5. FURTHER RESTRICITONS ON EMPADs It shall unlawful to operate EPAMD's on streets and highways that are parts of the state highway system. Section 6. MINIMUM AGE FOR OPERATION OF EPAMDs Operation of EPAMDs shall be limited to persons sixteen (16) years of age or older. Section 7. VIOLATIONS Violations of this Ordinance shall be punishable in accordance with the Section 1 -4 -1 of this Code. Section 8. SUNSET PROVISION AND ORDINANCE EXPIRATION This Ordinance, and the rights granted by this Ordinance, shall expire on September 30, 2009. Section 9. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Ordinance No. 15, Series of 2009 9-2 -2 Section 10. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 11. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 2n day of June, 2009, and a public hearing for second reading of this Ordinance set for the 16 day of June, 2009, at 6:00 P.M. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 15, Series of 2009 9 -2 -3 Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Second reading of Ordinance No. 7, Series 2009, an ordinance repealing and re- enacting Ordinance No. 5, Series of 2006, and amending Special Development District No. 39, Crossroads, and setting forth details in regard thereto. PRESENTER(S): Warren Campbell / Mauriello Planning Group ACTION REQUESTED OF COUNCIL: Approve, modify, or deny Ordinance No. 7, Series of 2009, on second reading. BACKGROUND: On March 9, 2009, the Town of Vail Planning and Environmental Commission held a public hearing on a request for a major amendment to Special Development District No. 39, Crossroads. The purpose of the major amendment is to increase the maximum allowable number of dwelling units from 77 to 78 dwelling units. Upon review of the request, the Planning and Environmental Commission voted 6 -1 -0 (Pierce opposed) to forward a recommendation of approval of the request to the Vail Town Council. On May 19, 2009, the Vail Town Council approved the first reading of Ordinance No. 7, Series of 2009, by a vote of 4 -3 -0 (Cleveland, Foley, Daly opposed). STAFF RECOMMENDATION: The Planning and Environmental Commisison recommends that the Vail Town Council approves Ordinance No. 7, Series of 2009, on second reading. ATTACHMENTS: Reduced Set of Solaris Floor Plans Town Council Memorandum Ordinance No. 7, Series of 2009 Draft RT TOON r p 0 E g \( � � °� )�� � � § � E ^ : / \ - l ---- - - - - —— El Es �-- X O, 0 Fm� "- �o El } ) ) I- X O- , ! u ! / n �\ § \ : : ( � \ ����^ ® m > co o X IV (> > ;u 11 M 0 < M M m O N X m r m� r r ®® El r C ®® ® m M ® "� < m 1 . - +� H ® r rn Z N G. m v r ® m P m m vx m _ 9 a < z a° - m� - T _ - 0 N nn y C - z I �m -- n � Dcl) � = X A m - m oo r� a N Cl) <z �, _ N� m - oomD r� m m rD � O III /III _-- I m ® J s D H 11111111 n� ❑ m 0 P a a I T ° - a m qAO l ® o a n o a .po r Da �~ Ell - - r \ z \ E ® ❑ P � - r a® In d 0 0 ILI z _ m \. T m m V�. D m n D o y \ 0 \ N - r O r � I i I p x \\ � e E r e I 9 I N r 0 ono 0 Lr VIII �y o o ®. d H o� �.. x x 0 I UP 2.2 o A D I fit 0 m T P 2.2% 03 C m Z O - - A y ,vp � mN °r "m m r I I � I I R -] L - - -- RE: A2.15 RE: A2.16 RE: A2.17 / / 3 'tl q p r 7T I �a f — I — .�r` 1 o a o o a o aE -L / o RE: A2.18 ;. APPROVED PROMENADE LEVEL SCALE: 1/16" - 1' -0" l FEBRUARY 27, 2009 MEMORANDUM TO: Town Council FROM: Community Development Department DATE: June 2, 2009 SUBJECT: Second reading of Ordinance No. 7, Series of 2009, an ordinance repealing and re- enacting Ordinance No. 5, Series of 2006, establishing Special Development District No. 39, Crossroads, and setting forth details in regard thereto. Applicant: Solaris Property Owner, LLC, represented by Mauriello Planning Group, LLC Planner: Warren Campbell I. DESCRIPTION OF THE REQUEST The applicant, Solaris Property Owner, LLC, represented by Mauriello Planning Group, LLC, is requesting a second reading of Ordinance No. 7, Series of 2009, an ordinance repealing and re- enacting Ordinance No. 5, Series of 2006, amending Special Development District No. 39, Crossroads, to increase the permitted number of dwelling units from 77 to 78 units. Staff has attached a copy of the draft Ordinance No. 7, Series of 2009, which contains no changes since first reading on May 19, 2009, (Attachment A). II. BACKGROUND On March 9, 2009, the Planning and Environmental Commission forwarded a recommendation of approval on the adoption of Ordinance No. 7, Series of 2009, by a vote of 6 -1 -0 (Pierce opposed). On March 17, 2009, the Vail Town Council tabled the first reading of Ordinance No. 7, Series of 2009, at the applicant's request to the April 21, 2009, public hearing. On April 21, 2009, the Vail Town Council tabled the first reading of Ordinance No. 7, Series of 2009, at the applicant's request to the May 19, 2009, public hearing. On May 19, 2009, The Town Council approved Ordinance No. 7, Series of 2009, on first reading by a vote of 4 -3 -0 (Cleveland, Foley, Daly opposed) III. ACTION REQUESTED OF COUNCIL The Vail Town Council shall approve, approve with modifications, or deny the second reading of Ordinance No. 7, Series of 2009. 1 10 -2 -1 IV. PLANNING AND ENVIRONMENTAL COMMISSION RECOMMENDATION The Planning and Environmental Commission recommends the Town Council approves, on second reading, Ordinance No. 7, Series of 2009, an ordinance repealing and re- enacting Ordinance No. 5, Series of 2006, establishing Special Development District No. 39, Crossroads, to increase the permitted number of dwelling units from 77 to 78 units, and setting forth details in regard thereto. Should the Town Council choose to approve these amendments, the Community Development Department recommends the Town Council pass the following motion: "The Town Council approves, on second reading, Ordinance No. 7, Series of 2009, an ordinance repealing and re- enacting Ordinance No. 5, Series of 2006, establishing Special Development District No. 39, Crossroads, to increase the permitted number of dwelling units from 77 to 78 units, and setting forth details in regard thereto. " Should the Town Council choose to approve Ordinance No. 7, Series of 2009, on second reading, the Community Development Department recommends the Town Council makes the following findings: "That the proposal to amend Special Development District No. 39, Crossroads, complies with the nine design criteria outlined in Section 12 -9A -8 of the Vail Town Code. Furthermore, the applicant has demonstrated to the satisfaction of the Commission, based upon the testimony and evidence presented during the public hearing, that any adverse effects of the requested deviations from the development standards of the underlying zoning are outweighed by the public benefits provided. Lastly, the Commission finds that the request is consistent with the development goals and objectives of the Town. That the proposed gross residential floor area of 174.4% of lot area, additional thirty -one dwelling units over allowable (at 29.5 units per acre total) in the Commercial Service Center zone district is in conformance with applicable elements of the Vail Comprehensive Master Plan. That the development is in compliance with the purposes of the Commercial Service Center zone district, that the proposal is consistent with applicable elements of the Vail Village Master Plan, the Vail Land Use Plan, and the Vail Streetscape Master Plan, and that the proposal does not otherwise have a significant negative effect on the character of the neighborhood, and that the proposal substantially complies with other applicable elements of the Vail Comprehensive Plan." V. ATTACHMENTS A. Ordinance No. 7, Series of 2009 2 10 -2 -2 ORDINANCE NO. 7 Series of 2009 AN ORDINANCE REPEALING AND RE- ENACTING ORDINANCE NO. 5, SERIES OF 2006, ESTABLISHING SPECIAL DEVELOPMENT DISTRICT NO. 39, CROSSROADS, PURSUANT TO ARTICLE A, SPECIAL DEVELOPMENT (SDD) DISTRICT, CHAPTER 9, TITLE 12, ZONING TITLE, TOWN CODE OF VAIL, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, Title 12, Zoning Title, Chapter 9, Article A, Special Development (SDD) District, Town Code of Vail establishes a procedure for amending special development districts; and WHEREAS, Crossroads East One, LLC and Crossroads West One, LLC, has submitted an application to the Town of Vail Community Development Department to amend Special Development District No. 39, Crossroads, to facilitate the redevelopment of an existing mixed use development; and WHEREAS, the Planning and Environmental Commission of the Town of Vail held a public hearing on March 9, 2009, on the application to amend Special Development District No. 39, Crossroads, in accordance with the provisions of the Town Code of Vail; and WHEREAS, upon due consideration, the Planning and Environmental Commission of the Town of Vail found that the request complies with the design criteria prescribed in the Title 12, Zoning Regulations, Vail Town Code, and furthers the development objectives of the Town of Vail; and WHEREAS, the Planning and Environmental Commission of the Town of Vail has forwarded a recommendation of approval with conditions, by a vote of 6 -1 -0 of this request for a major amendment to increase the maximum number of dwelling units from 77 to 78 for Special Development District No. 39, Crossroads, to the Vail Town Council; and WHEREAS, the Vail Town Council finds that the request to amend Special Development District No. 39, Crossroads, complies with the design criteria prescribed in the Title 12, Zoning Title, Town Code of Vail; and provides a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and WHEREAS, the Vail Town Council considers it in the interest of the public health, safety, and welfare to adopt Ordinance No. 7, Series of 2009, which repeals and re- enacts Ordinance No. 5, Series of 2006, which established Special Development District No. 39, Crossroads, in the Town of Vail. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. District Established Special Development District No. 39, Crossroads, is established for development on two parcels of land, legally described as Lot P and A Part of Tract C, Block 5D, Vail Village Filing 1, which comprise a total of 115,129 square feet (2.643 acres) in the Vail Village area of the Town of Vail. Said parcels may be referred to as "SDD No. 39 ". Special Development Ordinance No. 7, Series 2009 10 -3 -1 District No. 39 shall be reflected as such on the Official Zoning Map of the Town of Vail. The underlying zoning for Special Development District No. 39, Crossroads, shall be Commercial Service Center (CSC) District. Section 2. Special Development District No. 39, Crossroads, Approved Development Plan An approved development plan is the principal document in guiding the development, uses and activities of a special development district. The Vail Town Council finds that the Approved Development Plan for Special Development District No. 39, Crossroads, complies with each of the requirements set forth in Sections 12 -9A -5 and 12 -9A -6 of the Town Code of Vail. The Approved Development Plan for Special Development District No. 39, Crossroads, shall be comprised of materials submitted in accordance with Section 12 -9A -5 of the Town Code of Vail and those plans prepared by Barnes Coy Architects and Davis Partnership Architects, entitled " Solaris ", dated January 15, 2007, and stamped approved April 3, 2007 and amended pages dated February 27, 2009, and stamped approved June 2, 2009. Section 3. Development Standards In conjunction with the Approved Development Plan described in Section 2 herein, the following development standards are hereby approved by the Vail Town Council. These standards are incorporated in the Approved Development Plan to protect the integrity of the development of Special Development District No. 39, Crossroads. The development standards for Special Development District No. 39, Crossroads, are described below: 1. A. Permitted, Conditional, and Accessory Uses: The permitted, conditional, and accessory uses allowed in Special Development District No. 39, Crossroads, shall be those uses listed in Title 12, Chapter 7, Article E, Commercial Service Center zone district, Town Code of Vail, as may be amended from time to time. The approval of SDD No. 39 shall restrict the uses upon the plaza level tenant spaces to "retail /restaurant' uses solely and shall not be utilized for "professional offices, business offices, and studios" uses, as defined in Title 12. A professional office intended for real estate sales may be allowed on the plaza level of the building for a period of two years following the date of the issuance of a temporary certificate of occupancy or a final certificate of occupancy to allow for the sales of the on- site dwelling units and leasing of commercial spaces. No space noted as retail /restaurant space on the Approved Development Plan shall be converted to a dwelling unit. B. Lot Area: The minimum lot area for Special Development District No. 39, Crossroads, shall be 115,129 square feet (2.643 acres). C. Setbacks: The minimum setbacks for Special Development District No. 39, Crossroads, shall be as indicated on the Crossroads Approved Development Plan, described in Section 2 herein. D. Height: The maximum allowable building height for Special Development District No. 39, Crossroads shall be ninety -nine and nine tenths feet (99.9'), and as indicated on the Crossroads Approved Development Plan, described in Section 2 herein. Ordinance No. 7, Series 2009 2 10 -3 -2 E. Density Control: The maximum allowable Gross Residential Floor Area (GRFA) for Special Development District No. 39, Crossroads, shall be 200,858 square feet and the maximum allowable density shall be seventy - eight (78) dwelling units, and five (5) attached accommodation units, as indicated on the Crossroads Approved Development Plan, described in Section 2 herein. F. Site Coverage: The maximum allowable site coverage shall be ninety -three and six tenths percent (93.6 %) or 107,772 square feet of the total lot area, and as indicated on the Crossroads Approved Development Plan, described in Section 2 herein. G. Landscaping and Site Development: At least twenty percent (20 %) of the total site shall be landscaped. The minimum width and length of any area qualifying as landscaping shall be fifteen (15) feet with a minimum area of not less than three hundred (300) square feet. The landscaping and site development shall be as indicated on the Crossroads Approved Development Plan, described in Section 2 herein. H. Parking and Loading: Off street parking and loading shall be provided in accordance with title 12 -10 of the Vail Town Code. At least one -half (1/2) of the required parking shall be located within the main building or buildings. The minimum number of loading and delivery bays shall be five (5), as indicated on the Crossroads Approved Development Plan, described in Section 2 herein. Section 4. Conditions of Approval The following conditions of approval shall become part of the Town's approval of the establishment of Special Development District No. 39, Crossroads: The Developer shall address the following conditions of approval prior to appearing before the Vail Town Council for second reading of an adopting ordinance for the establishment of Special Development District No. 39, Crossroads: 1. The Developer shall prepare an amended written agreement, for Town Council review and approval, outlining the responsibilities and requirements of the required offsite improvements, as indicated on the proposed Approved Development Plan. This agreement shall include, but not be limited to, all streetscape improvements along Village Center Road and East Meadow Drive, public access to the plaza for pedestrians and Town sponsored events, which may include the establishment of an easement on the plaza and language in the covenants and declarations for owners of property in the project regarding the use of the plaza for special events, inclusion of the loading and delivery facility in the overall loading and delivery system, payment of traffic impact fees and credits given to offset fee, and details for funding public art. The Developer shall address the following conditions of approval prior to submitting a building permit application (a grading permit /excavation permit shall constitute a building permit); Ordinance No. 7, Series 2009 3 10 -3 -3 1. The Developer shall submit a final exterior building materials list, typical wall section, architectural specifications, and a complete color rendering for review and approval of the Design Review Board, prior to submittal of an application for a building permit. 2. The Developer shall submit a rooftop mechanical equipment plan for review and approval by the Design Review Board prior to the submittal of a building permit application. All rooftop mechanical equipment shall be incorporated into the overall design of the structure and enclosed and visually screened from public view. 3. The Developer shall receive all the required permits from the Colorado Department of Transportation (CDOT) prior to submitting for a building permit. Failure to receive the appropriate permits to access the South Frontage Road per the Approved Development Plan will require the project to return through the special development district review process. 4. The Developer shall comply with the written final comments of the Town of Vail Public Works Department outlined in the memorandum from the Town of Vail Public Works Department, dated January 16, 2006, prior to submitting an application to the Town of Vail Community Department for the issuance of a building permit for this project. 5. The Developer shall submit a written letter agreeing to install a public safety radio communications system within the subterranean parking structure which meets the specifications of the Town of Vail Communications Center. The specifications and details of this system shall be submitted to staff for review and approval with the application for a building permit. 6. The Developer shall submit a fire and life safety plan for review and approval by the Town of Vail Fire Department in conjunction with the building permit submittal. The Developer shall address the following conditions of approval prior to release of a full building permit, requesting a temporary certificate of occupancy, or a final certificate of occupancy; 1. The Developer shall submit a comprehensive sign program for review and approval by the Design Review Board, prior to requesting a temporary certificate of occupancy, or a final certificate of occupancy. 2. The Developer shall be assessed a traffic impact fee of $6,500 per net trip increase in p.m. traffic. The traffic and trip generation report prepared by Fox Higgins Transportation Group dated June 2007, that specifically addresses the change in number of condominium units from 75 to 77, states that the net peak increase is 81 trips, 13 more trips than in the original approved traffic study dated November 2005. Since the usage of the commercial space is still in flux the Public Works Department will require that a new study be performed prior to the issuance of a full building permit to address the traffic generation created by the specific tenants that will lease the commercial /retail space within the project. This change may cause the trip generation to increase. The applicant shall be responsible for mitigating the number of net peak trip increases depicted in the revised study. This impact fee shall not be offset by any public improvements and shall be paid prior to requesting a temporary Ordinance No. 7, Series 2009 4 10 -3 -4 certificate of occupancy or certificate of occupancy. 3. The Developer shall post a bond to provide financial security for 125% of the total cost of the required off -site public improvements. The bond shall be in place with the Town prior to the issuance of a temporary certificate of occupancy. This includes but is not limited to the proposed streetscape improvements. 4. The Developer shall commence initial construction of the Crossroads improvements within three years from the time of its final approval at second reading of the ordinance establishing Special Development District No. 39, and continue diligently toward the completion of the project. If the developer does not begin and diligently work toward the completion of the special development district or any stage of the special development district within the time limits imposed, the approval of said special development district shall be void. The Planning and Environmental Commission and Town Council shall review the special development district upon submittal of an application to reestablish the special development district following the procedures outlined in Section 12 -9A -4, Vail Town Code. 5. Employee Housing: Crossroads shall furnish deed restricted employee housing sufficient to accommodate 22 occupants by executing appropriate restrictive covenant(s) on form(s) provided by the Town. Any dwelling unit(s) restricted shall conform to the following floor area requirements: a one - bedroom unit shall contain at least 550 sq. ft. of floor area and accommodate no more than 2 occupants; a two - bedroom unit shall contain at least 850 sq. ft. of floor area and accommodate no more than 3 occupants; a three - bedroom unit shall contain at least 1,350 sq. ft. of floor area and accommodate no more than 4 occupants; and a four - bedroom unit shall contain at least 1,500 sq. ft. of floor area and accommodate no more that 5 occupants. The Town may approve minor variations in floor area when the overall intent of the floor area requirements is being met. Any deed restriction shall be for property located within the Town. Such deed restriction(s) shall be executed and provided to the Town for recording and restricted unit(s) shall be available for occupancy prior to the issuance of a temporary certificate of occupancy for the Crossroads Project or any phase thereof. Any deed restricted employee housing unit shall comply with the standards and procedures established by the Town Zoning Regulations. 6. The approval of SDD No. 39, Crossroads, shall restrict the uses upon the plaza level tenant spaces to retail uses solely and shall not be utilized for professional offices, business offices, and studios. The second floor retail space may be utilized for any allowable or conditional use as listed in the Commercial Service Center Zone District. No space noted as retail space on the Approved Development Plan shall be converted to a residential dwelling unit. Temporary real estate sales offices may be allowed on the plaza level of retail during the first two years following the issuance of a certificate of occupancy in order to allow effective sales of dwelling units on -site. Section 5. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Vail Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses Ordinance No. 7, Series 2009 c 10 -3 -5 or phrases be declared invalid. Section 6. The Vail Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. The Council's finding, determination and declaration is based upon the review of the criteria prescribed by the Town Code of Vail and the evidence and testimony presented in consideration of this ordinance. Section 7. The amendment of any provision of the Town Code of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 8. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 19 day of May, 2009, and a public hearing for second reading of this Ordinance set for the 2 day of June 2009, at 6:00 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 2nd day of June, 2009. Richard D. Cleveland, Mayor Attest: Lorelei Donaldson, Town Clerk Ordinance No. 7, Series 2009 6 10 -3 -6 Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Second reading of Ordinance No. 13, Series of 2009, an ordinance amending the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for the conversion of two existing fractional fee club units to dwelling units, located at 16 Vail Road (Vail Plaza Hotel) / a portion of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. PRESENTER(S): Bill Gibson ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 13, Series of 2009, on second reading. BACKGROUND: On May 19, 2009, the Town Council approved the first reading of Ordinance No. 13, Series of 2009, with modification by a vote of 4 -3 -0 (Cleveland, Foley, and Newbury opposed). STAFF RECOMMENDATION: The Planning and Environmental Commission recommends the Town Council approves Ordinance No. 13, Series of 2009, on second reading. ATTACHMENTS: Town Council memo Ordinance No. 13, Series of 2009 MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: June 2, 2009 SUBJECT: Second reading of Ordinance No. 13, Series of 2009, an ordinance temporarily amending the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for the conversion of two existing fractional fee club units to dwelling units, located at 16 Vail Road (Vail Plaza Hotel) / a portion of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC090011) Applicant: Vail Plaza Development, LLC Planner: Bill Gibson I. DESCRIPTION OF THE REQUEST The applicant, Vail Plaza Development, LLC, is requesting a second reading of Ordinance No. 13, Series of 2009, an ordinance amending the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for the conversion of two existing fractional fee club units to dwelling units, located at 16 Vail Road (Vail Plaza Hotel) / a portion of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. The applicant is proposing to increase the number of dwelling units from one to three in the Vail Plaza Hotel by converting the existing fractional fee club units #313 and #401 into dwelling units. II. BACKGROUND The Planning and Environmental Commission held public hearings to discuss this request on April 27, and May 11, 2009. On May 11, 2009, the Planning and Environmental Commission voted 7 -0 -0 to forward a recommendation of approval, with conditions, to the Town Council for the proposed special development district amendment based upon the findings noted below in Section III of this memorandum and the additional finding: "That the temporary approval of this amendment will have no negative effect on parking since the existing penthouse dwelling unit can not yet be occupied. " On May 19, 2009, the Town Council held a public hearing to discuss the applicant's request. The applicant's formal written request was to convert two existing fractional fee club units into dwelling units in exchange for the conversion of the one penthouse dwelling unit into a fractional fee club unit. However, the Planning and Environmental Commission recognized, and fully accepted, that construction of the penthouse is not complete, there has been no certificate of occupancy issued for the penthouse unit, and that the applicant by his own testimony has no intension of completing construction of the penthouse unit or of marketing that unit as anything other than a dwelling unit. Therefore, while on paper the applicant was proposing the conversion of the penthouse 1 11 -1 -1 unit to a fractional fee club unit in exchange for the two new dwelling units; in practice the penthouse unit will never actually function as a fractional fee club unit. At its May 19, 2009, hearing the Town Council approved the first reading of Ordinance No. 13, Series of 2009, with the modifications that reference to the conversion of the penthouse dwelling unit to a fractional fee club unit be stricken, and that the sale of the penthouse unit be a trigger for the expiration of this ordinance in addition to the Commission's recommended triggers of the specific date May 11, 2012, or the issuance of an occupancy certificate for the penthouse unit. The condominium plat for the Vail Plaza Hotel identifies the unit type designations (commercial unit, club unit, hotel unit, spa unit, etc.) within building. Since the Town Council has chosen to temporarily approve the applicant's request to convert to fractional fee club units to dwelling units, Staff recommends the Council formalize the applicant's requirement to update the condominium plat by including this requirement as a condition of approval for Ordinance No. 13, Series of 2009. This proposed condition has been integrated into the attached ordinance. III. ACTION REQUIRED The Town Council shall approve, approve with modification, or deny this ordinance on second reading. Should the Town Council choose to approve the second reading of this ordinance consistent with the first reading, the Community Development Department recommends the Town Council passes the following motion: "The Town Council approves, on second reading, Ordinance No. 13, Series of 2009, an ordinance amending the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for the conversion of two existing fractional fee club units to dwelling units, located at 16 Vail Road (Vail Plaza Hotel) / a portion of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto." Should the Town Council choose to approve the second reading of this ordinance consistent with the first reading, the Community Development Department recommends the Town Council imposes the following condition(s): 'I. This approval shall expire and become null and void on May 11, 2012, or upon either the sale or issuance of a Temporary or Final Certificate of Occupancy for Unit 507 of the Vail Plaza Hotel prior to said date. The applicant shall restore the subject fractional fee club units (Units 313 and 401) of the Vail Plaza Hotel temporarily converted to dwelling units back to fractional fee club units by no later than May 11, 2012, or within 7 calendar days of either the sale or issuance of a Temporary or Final Certificate of Occupancy for Unit 507 of the Vail Plaza Hotel prior to said date. 2. This approval is contingent upon the applicant obtaining Town of Vail administrative approval, and causing to be recorded, an amended condominium 2 11 - 1 -2 plat reflecting the change in designation of Units 313 and 401 from "club units" to "dwelling units" Upon either the sale of Unit 507 of the Vail Plaza Hotel, the issuance of a Temporary or Final Certificate of Occupancy for Unit 507, or prior to May 11, 2012, the applicant shall restore the condominium plat designation of both Units 313 and 401 of the Vail Plaza Hotel to "club unit" Should the Town Council choose to approve the second reading of this ordinance consistent with the first reading, the Community Development Department recommends the Town Council makes the following findings: "Based upon the review of the criteria outlined in Section IX this Staff memorandum to the Planning and Environmental Commission dated April 27, 2009, and the evidence and testimony presented, the Town Council finds: 1. That the special development district amendment does comply with the standards listed Article 12 -9A, Special Development District, or that a practical solution consistent with the public interest has been achieved. 2. That the special development district amendment is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and 3. That the special development district amendment is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and 4. That the special development district amendment does promote the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. 5. That the temporary approval of this amendment will have no negative effect on parking since the existing penthouse dwelling unit can not yet be occupied. " IV. ATTACHMENTS A. Ordinance No. 13, Series of 2009 3 ORDINANCE NO. 13 Series of 2009 AN ORDINANCE TEMPORARILY AMENDING THE APPROVED DEVELOPMENT PLAN FOR PHASE IV OF SPECIAL DEVELOPMENT DISTRICT NO. 6, VAIL VILLAGE INN, PURSUANT TO ARTICLE 12- 9A -10, AMENDMENT PROCEDURES, VAIL TOWN CODE, TO ALLOW FOR THE CONVERSION OF TWO EXISTING FRACTIONAL FEE CLUB UNITS TO DWELLING UNITS, LOCATED AT 16 VAIL ROAD (VAIL PLAZA HOTEL) / A PORTION OF LOTS M, N, AND O, BLOCK 5D, VAIL VILLAGE FILING 1, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, Ordinance No. 16, Series of 2004, established the approved development plan for Phase IV (Vail Plaza Hotel) of Special Development District No. 6, Vail Village Inn; and WHEREAS, amendments to a Special Development District are permitted pursuant to the parameters set forth for such in Section 12- 9A -10, Vail Town Code; and WHEREAS, the Planning and Environmental Commission of the Town of Vail held public hearings on April 20, 2009, and May 11, 2009, to consider the proposed amendment in accordance with the provisions of the Vail Town Code and forwarded a recommendation of approval, with conditions, to the Vail Town Council by a vote of 7 -0 -0; and WHEREAS, the Vail Town Council finds that the proposed amendment to Special Development District No. 6, complies with the review criteria outlined in Section 12 -9A -8, Vail Town Code, and that the applicant has demonstrated that any adverse effects of the requested deviations from the development standards of the underlying zoning are outweighed by the public benefits provided; and WHERAS, the Town Council finds that the special development district amendment does comply with the standards listed Article 12 -9A, Special Development District, or that a practical solution consistent with the public interest has been achieved; and WHEREAS, the Vail Town Council finds that the special development district amendment is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and WHEREAS, the Vail Town Council finds that the special development district amendment is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and WHEREAS, the Vail Town Council finds that the special development district amendment does promote the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality; and WHEREAS, the Vail Town Council finds that temporary approval of this amendment will have no negative effect on parking since the existing penthouse dwelling unit can not yet be occupied; and Ordinance No. 13, Series of 2009 second reading 11 -2 -1 WHEREAS, the approval of this special development district amendment, and the development standards in regard thereto, shall not establish precedence or entitlements elsewhere within the Town of Vail. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. AMENDMENTS Section 2, Development Standards, of Ordinance No. 16, Series of 2004, is hereby amended as follows (all additions are illustrated with bold italics, deletions are illustrated with strikethrough and text not affected has been omitted): Density -- Units per Acre - Dwelling Units, Accommodation Units, & Fractional Fee Club Units The number of units permitted in Phase IV shall not exceed the following: Dwelling Units — 4- 3 Accommodation Units - 100 Fractional Fee Club Units — 59 48 Type III Employee Housing Units -18 (38 employee beds totaling 9,618 square feet of floor area) Section 2. EFFECTIVE TERM This ordinance shall expire and become null and void on May 11, 2012; or upon either the sale or issuance of a Temporary or Final Certificate of Occupancy for Unit 507 of the Vail Plaza Hotel prior to said date. Section 3. CONDITION(S) OF APPROVAL The following condition of approval shall become part of the Town's approval of this amendment to the approved development plan for Phase IV (Vail Plaza Hotel) of Special Development District No. 6, Vail Village Inn: 1. The applicant shall restore the subject fractional fee club units (Units 313 and 401) of the Vail Plaza Hotel temporarily converted to dwelling units back to fractional fee club units by no later than May 11, 2012; or within 7 calendar days of either the sale or issuance of a Temporary or Final Certificate of Occupancy for Unit 507 of the Vail Plaza Hotel prior to said date. 2. This approval is contingent upon the applicant obtaining Town of Vail administrative approval, and causing to be recorded, an amended condominium plat reflecting the change in designation of Units 313 and 401 from "club units" to "dwelling units ". Upon either the sale of Unit 507 of the Vail Plaza Hotel, the issuance of a Temporary or Final Certificate of Occupancy for Unit 507, or prior to May 11, 2012, the applicant shall restore the condominium plat designation of both Units 313 and 401 of the Vail Plaza Hotel to "club unit ". Ordinance No. 13, Series of 2009 second reading 2 11 -2 -2 Section 4. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Vail Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 5. The Vail Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. The Council's finding, determination and declaration is based upon the review of the criteria prescribed by the Town Code of Vail and the evidence and testimony presented in consideration of this ordinance. Section 6. The amendment of any provision of the Town Code of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 7. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 19 day of May, 2009 and a public hearing for second reading of this Ordinance set for the 2 nd day of June, 2009, at 6:00 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 2 nd day of June, 2009. Richard D. Cleveland, Mayor Attest: Lorelei Donaldson, Town Clerk Ordinance No. 13, Series of 2009 second reading 3 11 -2 -3 Ova" 7M VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2009 ITEM /TOPIC: Resolution No. 17, Series of 2009, a Resolution Approving an Intergovernmental Agreement Between the Town of Vail, Colorado and the State of Colorado Department of Revenue Regarding the Authorization to Administer Commercial Driver's License Driver Skills Testing; and Setting Forth Details in Regard Thereto. PRESENTER(S): Greg Hall / Matt Mire ACTION REQUESTED OF COUNCIL: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with DOR. BACKGROUND: The Town of Vail has been providing CDL examiner services for our employees for many years. Without the approval of the state in the form of the IGA, the town's C.D.L. Examiner licenses will be lost and we will not be able to train and test our new seasonal drivers next fall. If that happens, we will need to find another third party tester, most likely in the Denver area, to test our drivers. The expenses and timing would be very prohibitive. STAFF RECOMMENDATION: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with the DOR in a form approved by the Town Attorney. ATTACHMENTS: Resolution No. 17, Series of 2009 Exhibit A DOR IGA RESOLUTION NO. 17 Series of 2009 A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF VAIL, COLORADO AND THE STATE OF COLORADO DEPARTMENT OF REVENUE REGARDING THE AUTHORIZATION TO ADMINISTER COMMERCIAL DRIVER'S LICENSE DRIVER SKILLS TESTING; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the "Town "), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the "Charter "); and WHEREAS, the members of the Town Council of the Town (the "Council ") have been duly elected and qualified; and WHEREAS, the Town and the Colorado Department of Revenue (the "DOR ") wish to enter into an Intergovernmental Agreement ( "IGA ") to authorize Commercial Driver's License ( "CDL ") Testing Units to administer and provide CDL Driver Skills Testing on behalf of the DOR. WHEREAS, the Town meets the necessary Commercial Driver's License ( "CDL ") Testing Units to administer and provide CDL Driver Skills Testing. WHEREAS, the Town's operations require the continued testing of employees for the necessary Commercial Driver's License ( "CDL ") skills to maintain service levels to the community. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council hereby approves and authorizes the Town Manager to enter into the IGA with DOR, in substantially the same form as attached hereto as Exhibit A and in a form approved by the Town Attorney, for the authorization to provide CDL driver skills testing on behalf of the State of Colorado. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 2 nd day of June, 2009. Richard Cleveland Town Mayor ATTEST: Lorelei Donaldson, Town Clerk Resolution No. 17, Series 2009 12 -1 -1 Department of Revenue TAA Intergovernmental Agreement THIS AGREEMENT, made this day of 20 , by and between the State of Colorado for the use and benefit of the Department of Revenue, Motor Carrier Services Division, CDL Compliance Section, 1881 Pierce Street, Room 118, Lakewood, Colorado 80214, hereinafter referred to as "DOR ", and a (name and type of governmental entity ") (address), FEIN Number , hereinafter referred to as the "CDL Testing Unit ". FACTUAL RECITALS DOR is authorized by Sections 24-4 -103, 42- 2- 111(1)(b), 42- 2- 403(2)(a), 42- 2- 406(3) and 407(8) C. R. S. to adopt rules and regulations as necessary for the Commercial Driver's License ( "CDL ") Program to ensure compliance and promote the safety and welfare of the citizens of Colorado; and DOR desires to memorialize and authorize CDL Testing Units to Administer and provide CDL Driver Skills Testing on behalf of DOR; and By reference, DOR adopts and incorporates into this agreement the Federal Motor Carrier Safety Regulations Parts 383, 384, 386, 390 and 391, Qualifications and Disqualification and Code of Federal Regulations, Title 49, Parts 383, 384, 386, 390 and 391, revised as of October 1, 2002. Required approval, clearance and coordination has been accomplished from and with appropriate agencies; and NOW, THEREFORE, it is hereby agreed that in consideration of the mutual covenants and agreements set forth, the sufficiency of which is hereby acknowledged, DOR and the CDL Testing Unit agree as follows: 1. PRIORITY OF INTERPRETATION The provisions of this agreement shall be governing over the relationship of DOR and the CDL Testing Unit. Should conflict in any provisions of this agreement and any exhibits be identified, the priority of interpretation of the agreement shall be: first, the Special Provisions incorporated within the agreement; second, the terms and provisions of this agreement; and third, the Rules and Regulations for the CDL Program, ( "Exhibit A "), hereby attached and incorporated herein. 2. STATEMENT OF WORK AND RESPONSIBILITIES. A. On behalf of DOR, The CDL Testing Unit shall competently provide CDL Driving Skills Testing, services to DOR and applicants pursuant to and consistent with the intent of all applicable Federal 1 12 -2 -1 and State laws, the terms of this agreement; the Rules and Regulations for the Commercial Driver's License (CDL) Program, attached and incorporated herein as Exhibit A; and, the current CDL Tester's manual, hereby incorporated by reference. B. CDL Testing Unit shall at all times have a valid signed agreement with DOR prior to providing the services pursuant to the agreement. Additionally, the CDL Testing Unit and the CDL Driving Skills Tester shall be in possession of a valid license in accordance with Exhibit A of this agreement prior to providing services authorized by this agreement. C. The CDL Testing Unit shall have written permission from the landowner to administer the CDL vehicle basic control tests on areas not owned by the CDL Testing Unit. This written permission, substantially in a form equivalent to Attachment A, attached and incorporated herein, shall be submitted to DOR for approval prior to testing. D. The CDL Testing Unit agrees to: 1) Maintain an established place of business in Colorado with a vehicle fleet of no less than three CMV's owned, leased or registered to the testing unit, the business owner or an employee of the business; or 2) Maintain an adult education occupational business license with the Division of Private Occupational School, a division of the Colorado Department of Higher Education; or 3) Be an agency of government, public school district, private or parochial school or other type of pre - primary, primary, or secondary school transporting students from home to school or from school to home. 4) Comply with the Colorado Third Party Testing Professional Code of Ethics, attached and incorporated herein as Attachment B. 3. TERM The term of this agreement is from July 1, 2009 or the date DOR executes this agreement, whichever is later and shall end June 30, 2010. DOR, in its sole discretion, may require continued performance for four (4) additional periods of twelve (12) months for any services at the terms specified in the agreement. DOR may exercise the option by written notice of its intent to renew to the CDL Testing Unit within thirty (30) days prior to the end of the current agreement term. Notice of intent does not commit DOR to a renewal. The renewal shall be in a form substantially equivalent to Attachment C of this agreement ( "Option Letter "). The Option Letter shall not be valid until signed by DOR. The total duration of this agreement shall not exceed five (5) years. The term of this agreement is contingent upon the issuance or renewal of a valid CDL Testing Unit license. Permanent revocation of the CDL Testing Unit License shall be sufficient cause for immediate termination of this agreement. 4. INSPECTION AND ACCEPTANCE The CDL Testing Unit shall permit DOR and federal agency monitoring and auditing of records and activities that are or have been undertaken pursuant to this agreement. DOR reserves the right to inspect services provided under this agreement at all reasonable times and places during the term of the agreement, including any extensions. "Services" as used in this clause includes services performed or tangible material produced or delivered in the performance of services. If any of the services do not conform to agreement requirements, DOR may require the CDL Testing Unit to perform the services again in conformity with the agreement requirements. When defects 2 12 -2 -2 in the quality or quantity of service cannot be corrected by re- performance, DOR may require the CDL Testing Unit to take necessary action to ensure that the future performance conforms to the agreement requirements. 5. NON - EXCLUSIVE RIGHTS It is understood and agreed by the CDL Testing Unit that DOR does not grant the CDL Testing Unit exclusive rights to provide the products and/or services under this agreement. DOR reserves the right to agreement from persons and entities other than the CDL Testing Unit, as may be in the best interest of DOR. This agreement shall remain in full force and affect should DOR enter into other agreements for the same or similar goods and services as provided under this agreement. 6. SUBCONTRACTORS Pursuant to 42- 2- 407(1) C.R.S., the use of subcontractors in the performance of this agreement is not allowed. CDL Driving Skills Tests may be performed only by employees of DOR or by CDL Driving Skills Tester(s) employed by CDL Testing Units. 7. REPRESENTATIONS, WARRANTIES, AND PERFORMANCE STANDARDS The CDL Testing Unit shall perform the services described in Section 2, "Statement of Work and Responsibilities ", in accordance with the highest standard of care, skill and diligence provided by a professional person or company in performance of work similar to the service. The CDL Testing Unit warrants that (a) services provided under this agreement shall meet the descriptions in this agreement, (b) there are no pending or threatened suits, claims, or actions of any type with respect to the services provided and (c) the services shall be free and clear of any liens, encumbrances, or claims arising by or through the CDL Testing Unit or any party related to the CDL Testing Unit. The CDL Testing Unit expressly warrants and guarantees complete performance of the work in a manner acceptable to DOR. 8. CONFLICT OF INTEREST /GIFTS GRATUITIES During the term of this agreement, the CDL Testing Unit shall not engage in any business or personal activities or practices or maintain any relationships which conflict in any way with the full performance of the CDL Testing Unit's obligations under this agreement. Additionally, the CDL Testing Unit acknowledges that in governmental agreementing, even the appearance of a conflict of interest is harmful to the interests of DOR. Therefore, the CDL Testing Unit shall refrain from any practices, activities or relationships that could reasonably be considered to be in conflict with the full performance of CDL Testing Unit's obligations to DOR in accordance with the terms and conditions of this agreement, without the prior written approval of DOR. In the event that the CDL Testing Unit is uncertain whether the appearance of a conflict of interest may reasonably exist, the CDL Testing Unit shall submit to DOR a full disclosure statement setting forth the relevant details for DOR's consideration and direction. Failure to promptly submit a disclosure statement or to follow DOR's direction in regard to the apparent conflict shall be grounds for termination of the agreement. The CDL Testing Unit shall not, by itself or through any officer, director, employee, agent, partner, subagreementor or other representative, offer, give, grant, or otherwise deliver any gift, gratuity, or anything of monetary or non - monetary value to any employee of DOR or to any member of his/her immediate family or anyone living in his/her household. Failure by the CDL Testing Unit to ensure compliance with this provision may result, in DOR's sole discretion, in immediate termination of the agreement. 3 12 -2 -3 9. PERFORMANCE BOND The CDL Testing Unit shall acquire a performance bond in the amount of five thousand dollars ($5,000.00) when the CDL Testing Unit is testing applicants outside of their testing unit. Such bond must inure to the benefit of DOR and shall be in force through the term of the agreement, including any extensions. A certificate evidencing coverage must be delivered to DOR prior to execution of the agreement and prior to each subsequent renewal. The bond agreement shall contain a provision that indicates that any modifications or cancellation of such bond can occur only sixty (60) days after written notice to DOR. In the event of default by the CDL Testing Unit, DOR will have the sole responsibility for selecting the alternate CDL Testing Unit. 10. PRESS CONTACTS/NEWS RELEASES The CDL Testing Unit shall not initiate any press and/or media contact nor respond to press /media requests regarding this agreement and/or any related matters concerning DOR without the prior written approval of DOR. 11. CONFIDENTIALITY OF STATE RECORDS AND INFORMATION The CDL Testing Unit acknowledges that it may come into contact with confidential information in connection with this agreement or in connection with the performance of its obligations under this agreement, including but not limited, to personal records and information of individuals. It shall be the responsibility of the CDL Testing Unit to keep all State records and information confidential at all times and to comply with all Colorado State and Federal laws, rules and regulations concerning the confidentiality of information. Any request or demand for information in the possession of the CDL Testing Unit made by a third party who is not an authorized party to this agreement shall be immediately forwarded to the DOR's representative listed in the "Notices and Representatives" section of this agreement for resolution. The CDL Testing Unit shall provide and maintain a secure environment that ensures confidentiality of all State records and information wherever located. No State information of any kind shall be distributed or sold to any third party or used by the CDL Testing Unit or its agents in any way, except as authorized by the CDL Testing Unit and as approved by the DOR. State information shall not be retained in any files or otherwise by the CDL Testing Unit or its agents, except as set forth in this agreement and approved by the DOR. Disclosure of State records or information may be cause for legal action against the CDL Testing Unit or its agents. Defense of any such action shall be the sole responsibility of the CDL Testing Unit or its agents. If the CDL Testing Unit becomes aware of a breach of data security, it shall notify DOR immediately and cooperate with DOR regarding recovery, remediation, and the necessity to involve law enforcement, if any. The CDL Testing Unit shall be responsible for the cost of notifying each Colorado resident and residents of other states whose personal information may have been compromised. Notice shall be made as soon as possible within the legitimate needs of law enforcement and according to the requirements of DOR. The CDL Testing Unit shall be responsible for performing an analysis to determine the cause of the breach, and for producing a remediation plan to reduce the risk of incurring a similar type of breach in the future. The CDL Testing Unit shall present such analysis and remediation plan to DOR within ten (10) days of notifying DOR of the breach of data security. DOR reserves the right to adjust this plan, in its sole discretion. In the event that the CDL Testing Unit cannot produce the required analysis and plan within the allotted time, DOR, in its sole discretion, may perform such analysis and produce a remediation plan that the CDL Testing Unit shall comply with, at the CDL Testing Unit's sole cost. The CDL Testing Unit shall notify all of its agents, employees, subcontractors and assigns who will come into contact with State information that they are subject to the confidentiality requirements set forth herein, and shall provide each with a written explanation of the requirements before they are permitted to access information or data. 12. THIRD PARTY BENEFICIARIES The enforcement of the terms and conditions of this agreement and all rights of action relating to such enforcement shall be strictly reserved to DOR and the CDL 4 12 -2 -4 Testing Unit. Nothing contained in this agreement shall give or allow any claim or right of action whatsoever by any other third person. It is the express intention of DOR and the CDL Testing Unit that any such person or entity, other than DOR or the CDL Testing Unit, receiving services or benefits under this agreement shall be deemed an incidental beneficiary only. 13. NOTICES The CDL Testing Unit shall notify the State in writing within three (3) business days of any of the following: • Any State or court ordered action imposing suspension, revocation, or cancellation upon the driver's license of a CDL Driving Skills Tester. • Any State or court ordered action imposing an "Out of Service" order or "Removal from Safety Sensitive Function" order on the driving status of a CDL Driving Skills Tester. • Any change in the CDL Testing Unit's name address, phone number, and testing location. • The CDL Testing Unit ceases business operations in Colorado. For the Testing Unit: For the State: State of Colorado Name Department of Revenue MCS- CDL Trish Aragon Address 1881 Pierce St., Room 118 Lakewood, CO 80214 303 - 205 -5670 Address Telephone Number 14. LEGAL AUTHORITY The CDL Testing Unit warrants that it possesses the legal authority to enter into this agreement and that it has taken all actions required by its procedures, by -laws, and/or applicable law to exercise that authority, and to lawfully authorize its undersigned signatory to execute this agreement and to bind the CDL Testing Unit to its terms. The person(s) executing this agreement on behalf of the CDL Testing Unit warrant(s) that such person(s) have full authorization to execute this agreement. 15. REMEDIES. In addition to any other remedies provided for in this agreement, and without limiting its remedies otherwise available at law, the State may exercise the following remedial actions if the CDL Testing Unit substantially fails to satisfy or perform the duties and obligations in this agreement. Substantial failure to satisfy the duties and obligations shall be defined to mean be significant insufficient, incorrect or improper performance, activities, or inaction by the CDL Testing Unit. These remedial actions are as follows: A. Suspend the CDL Testing Unit's performance pending necessary corrective action as specified by the State without the CDL Testing Unit's entitlement to adjustment in schedule; and/or B. Request the removal from work on the agreement of employees or agents of the CDL Testing Unit whom the State justifies as being incompetent, careless, insubordinate, 5 12 -2 -5 unsuitable, or otherwise unacceptable, or whose continued employment on the agreement the State deems to be contrary to the public interest or not in the best interest of the State; and/or C. Terminate the agreement for default. The above remedies are cumulative and the State, in its sole discretion, may exercise any or all of them individually or simultaneously. 15. TERMINATION FOR CONVENIENCE Termination The State may, when the interests of the State so require, terminate this agreement in whole or in part, for the convenience of the State. The State shall give at least ten (10) days advance written notice of the termination to the CDL Testing Unit specifying the part(s) of the agreement terminated and the effective date of termination. Exercise by the State of the Termination of Convenience Clause in no way implies that the State has breached the agreement. CDL Testing Unit's Obligations The CDL Testing Unit shall incur no further obligations in connection with the terminated work and on the date specified in the notice of termination the CDL Testing Unit shall stop work to the extent specified. The CDL Testing Unit shall also terminate outstanding orders and subcontracts as they relate to the terminated work. The CDL Testing Unit shall settle the liabilities and claims arising out of the termination of subcontracts and orders connected with the terminated work. The CDL Testing Unit must still complete and deliver to the State the work not terminated by the Notice of Termination and incur obligations as are necessary to do so. 16. TERMINATION FOR DEFAULT /CAUSE If the CDL Testing Unit refuses or fails to perform any of the provisions of this agreement, the State may notify the CDL Testing Unit in writing of the non - performance, and if not promptly corrected within the time specified, the State may terminate the CDL Testing Unit's right to proceed with the agreement or such part of the agreement as to which there has been delay or a failure to properly perform. In the event of termination, all finished or unfinished documents, data, studies, surveys, reports or other materials prepared by the CDL Testing Unit pursuant to this agreement shall, at the option of the State, become the State's property and, if in the possession of the CDL Testing Unit, shall immediately be returned to the State. The CDL Testing Unit shall continue performance of the agreement to the extent it is not terminated. Notwithstanding the above, the CDL Testing Unit shall not be relieved of liability to the State for any damages sustained by the State by virtue of any breach of the agreement by the CDL Testing Unit. Notwithstanding termination of the agreement and subject to any directions from the State, the CDL Testing Unit shall take timely, reasonable and necessary action to protect and preserve property in the possession of the CDL Testing Unit in which the State has an interest. 6 12 -2 -6 Excuse for Nonperformance or Delayed Performance The CDL Testing Unit shall not be in default by reason of any failure in performance of this agreement in accordance with its terms if such failure arises as a result of "force majeure," as set forth in the "Force Majeure" section of this agreement. Upon request of the CDL Testing Unit, the State shall ascertain the facts and extent of such failure, and, if the State determines that any failure to perform was a result of force majeure, and that, but for the force majeure, the CDL Testing Unit's progress and performance would have met the terms of the agreement, the delivery schedule shall be revised accordingly, subject to the rights of the State. Erroneous Termination. or Default If after notice of termination of the CDL Testing Unit's right to proceed under the provisions of this clause, it is determined for any reason that the CDL Testing Unit was not in default under the provisions of this clause, or that the delay was excusable, the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to the termination for convenience clause. 17. INSURANCE. If the CDL Testing Unit is a "public entity" within the meaning of the ColoradoGovernmental Immunity Act, CRS 24 -10 -101, et seg., as amended ( "Act "), the CDL Testing Unit shall at all times during the term of this agreement maintain such liability insurance, by commercial policy or self - insurance, as is necessary to meet its liabilities under the Act. Upon request by the State, the CDL Testing Unit shall show proof of such insurance. 18. ASSIGNMENT AND SUCCESSORS. The CDL Testing Unit shall not assign rights or delegate duties under this agreement. 19. FORCE MAJEURE Neither the CDL Testing Unit nor the State shall be liable to the other for any delay in, or failure of performance of, any covenant or promise contained in this agreement, nor shall any delay or failure constitute default or give rise to any liability for damages if, and only to the extent that, such delay or failure is caused by "force majeure". As used in this agreement "force majeure" means acts of God; acts of the public enemy; acts of the State and any governmental entity in its sovereign or agreementual capacity; fires; floods; epidemics; quarantine restrictions; strikes or other labor disputes, freight embargoes; illegality, or unusually severe weather. 20. WAIVER The waiver of any breach of a term, provision, or requirement of this contract shall not be construed or deemed as waiver of any subsequent breach of such term, provision, or requirement, or of any other term, provision, or requirement. 21. INTEGRATION OF UNDERSTANDING. This agreement is intended as the complete integration of all understandings between the parties. No prior or contemporaneous addition, deletion, or other amendment hereto shall have any force or effect unless embodied herein in writing. No subsequent notation, renewal, addition, deletion, or other amendment hereto shall have any force or effect unless embodied in a written contract executed and approved pursuant to State Fiscal Rules. 22. SURVIVAL OF CERTAIN CONTRACT TERMS. Notwithstanding anything herein to the contrary, the parties understand and agree that all terms and conditions of this agreement and the exhibits and/or attachments hereto which may require continued performance, compliance, or effect beyond the termination or expiration date of the agreement shall survive such termination or expiration date and shall be enforceable by the State as provided herein in the event of such failure to perform or to comply by the CDL Testing Unit. 7 12 -2 -7 23. MODIFICATION AND AMENDMENT This agreement is subject to such modifications as may be required by changes in Federal or State law, or their implementing regulations. Any such required modification shall automatically be incorporated into and be part of this agreement on the effective date of such change as if fully set forth herein. Except as provided above, no modification of this agreement shall be effective unless agreed to in writing by both parties in an amendment to this agreement that is properly executed and approved in accordance with applicable law. 24. COOPERATION OF THE PARTIES. The CDL Testing Unit and the State agree to cooperate fully, to work in good faith, and to mutually assist each other in the performance of this agreement. In connection herewith, the parties shall meet to resolve problems associated with this agreement. Neither party will unreasonably withhold its approval of any act or request of the other to which the party's approval is necessary or desirable. Disputes arising under this agreement that cannot be settled through an informal meeting may be resolved through the procedures set forth in the Colorado Procurement Code. 25. VENUE & CHOICE OF LAW This agreement is made in the State of Colorado. CDL Testing Unit agrees that exclusive venue for any action between the parties for claims concerning this agreement shall be in the City and County of Denver, Colorado. In accordance with Special Provision 6, GENERAL, below, the laws of the State of Colorado shall control. 26. SECTION HEADINGS The section headings or titles are for convenience only and shall have no substantive effect in the interpretation of the agreement. 8 12 -2 -8 SPECIAL PROVISIONS These Special Provisions apply to all contracts except where noted in italics. 1. CONTROLLER'S APPROVAL. CRS §24- 30- 202(1). This contract shall not be valid until it has been approved by the Colorado State Controller or designee. 2. FUND AVAILABILITY. CRS §24 -30- 202(5.5). Financial obligations of the State payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available. 3. GOVERNMENTAL IMMUNITY. No term or condition of this contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, of the Colorado Governmental Immunity Act, CRS §24 -10 -101 et seq., or the Federal Tort Claims Act, 28 U.S.C. §§ 1346(6) and 2671 et seq., as applicable now or hereafter amended. 4. INDEPENDENT CONTRACTOR. Contractor shall perform its duties hereunder as an independent contractor and not as an employee. Neither Contractor nor any agent or employee of Contractor shall be deemed to be an agent or employee of the State. Contractor and its employees and agents are not entitled to unemployment insurance or workers compensation benefits through the State and the State shall not pay for or otherwise provide such coverage for Contractor or any of its agents or employees. Unemployment insurance benefits will be available to Contractor and its employees and agents only if such coverage is made available by Contractor or a third parry. Contractor shall pay when due all applicable employment taxes and income taxes and local head taxes incurred pursuant to this contract. Contractor shall not have authorization, express or implied, to bind the State to any agreement, liability or understanding, except as expressly set forth herein. Contractor shall (a) provide and keep in force workers' compensation and unemployment compensation insurance in the amounts required by law, (b) provide proof thereof when requested by the State, and (c) be solely responsible for its acts and those of its employees and agents. 5. COMPLIANCE WITH LAW. Contractor shall strictly comply with all applicable federal and State laws, rules, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices. 6. CHOICE OF LAW. Colorado law, and rules and regulations issued pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this contract. Any provision included or incorporated herein by reference which conflicts with said laws, rules, and regulations shall be null and void. Any provision incorporated herein by reference which purports to negate this or any other Special Provision in whole or in part shall not be valid or enforceable or available in any action at law, whether by way of complaint, defense, or otherwise. Any provision rendered null and void by the operation of this provision shall not invalidate the remainder of this contract, to the extent capable of execution. 7. BINDING ARBITRATION PROHIBITED. The State of Colorado does not agree to binding arbitration by any extra judicial body or person. Any provision to the contrary in this contact or incorporated herein by reference shall be null and void. 8. SOFTWARE PIRACY PROHIBITION. Governor's Executive Order D 002 00. State or other public funds payable under this contract shall not be used for the acquisition, operation, or maintenance of computer software in violation of federal copyright laws or applicable licensing restrictions. Contractor hereby certifies and warrants that, during the term of this contract and any extensions, Contractor has and shall maintain in place appropriate systems and controls to prevent such improper use of public funds. If the State determines that Contractor is in violation of this provision, the State may exercise any remedy available at law or in equity or under this contract, including, without limitation, immediate termination of this contract and any remedy consistent with federal copyright laws or applicable licensing restrictions. 9. EMPLOYEE FINANCIAL INTEREST /CONFLICT OF INTEREST. CRS § §24- 18-201 and 24-50 -507. The signatories aver that to their knowledge, no employee of the State has any personal or beneficial interest whatsoever in the service or property described in this contract. Contractor has no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance of Contractor's services and Contractor shall not employ any person having such known interests. 10. VENDOR OFFSET. CRS § §24- 30-202 (1) and 24 -30- 202.4. [Not Applicable to intergovernmental agreements] Subject to CRS §24 -30 -202.4 (3.5), the State Controller may withhold payment under the State's vendor offset intercept system for debts owed to State agencies for: (a) unpaid child support debts or child support arrearages; (b) unpaid balances of tax, accrued interest, or other charges specified in CRS §39 -21 -101, et seq.; (c) unpaid loans due to the Student Loan Division of the Department of Higher Education; (d) amounts required to be paid to the Unemployment Compensation Fund; and (e) other unpaid debts owing to the State as a result of final agency determination or judicial action. 11. PUBLIC CONTRACTS FOR SERVICES. CRS §8- 17.5 -101. [Not Applicable to agreements relating to the offer, issuance, or sale of securities, investment advisory services or fund management services, sponsored projects, intergovernmental agreements, or information technology services or products and services] Contractor certifies, warrants, and agrees that it does not knowingly employ or contract with an illegal alien who will perform work under this contract and will confirm the employment eligibility of all employees who are newly hired for employment in the United States to perform work under this contract through participation in the E- Verify Program or the Department program established pursuant to CRS §8- 17.5- 102(5xc), Contractor shall not knowingly employ or contract with an illegal alien to perform work under this contract or enter into a contract with a subcontractor that fails to certify to Contractor that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this contract Contractor (a) shall not use E- Verify Program or Department program procedures to undertake pre - employment screening of job applicants while this contract is being performed, (b) shall notify the subcontractor and the contracting State agency within three days if Contractor has actual knowledge that a subcontractor is employing or contracting with an illegal alien for work under this contract, (c) shall terminate the subcontract if a subcontractor does not stop employing or contracting with the illegal alien within three days of receiving the notice, and (d) shall comply with reasonable requests made in the course of an investigation, undertaken pursuant to CRS §8 -17.5- 102(5), by the Colorado Department of Labor and Employment. If Contractor participates in the Department program, Contractor shall deliver to the contracting State agency, Institution of Higher Education or political subdivision a written, notarized affirmation, affirming that Contractor has examined the legal work status of such employee, and shall comply with all of the other requirements of the Department program. If Contractor fails to comply with any requirement of this provision or CRS §8 -17.5 -101 et seq., the contracting State agency, institution of higher education or political subdivision may terminate this contract for breach and, if so terminated, Contractor shall be liable for damages. 12. PUBLIC CONTRACTS WITH NATURAL PERSONS. CRS §24- 76.5 -101. Contractor, if a natural person eighteen (18) years of age or older, hereby swears and affirms under penalty of perjury that he or she (a) is a citizen or otherwise lawfully present in the United States pursuant to federal law, (b) shall comply with the provisions of CRS §24- 76.5 -101 et seq., and (c) has produced one form of identification required by CRS §24- 76.5 -103 prior to the effective date of this contract. Revised 1 -1-09 9 12 -2 -9 THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT CDL TESTING UNIT: STATE OF COLORADO: BILL RMER, JR., GOVERNOR By: By: Legal Name of Contracting Entity Joan Vecchi, Senior Director Motor Vehicle Division For the Executive Director Department of Revenue Social Security Number or FEIN Signature of Authorized Officer Print Name & Title of Authorized Officer CORPORATIONS: (A corporate attestation is required.) Attest (Seal) (Place corporate seal here, if available.) By: (Corporate Secretary or Equivalent, or Town/City /County Clerk 10 12 -2 -]0 Exhibit A RULES AND REGULATIONS FOR THE COMMERCIAL DRIVER'S LICENSE (CDL) PROGRAM 1 CCR 204 -12 November 2008 A. BASIS, PURPOSE AND STATUTORY (1) The Department is authorized to adopt rules and regulations as necessary for the Commercial Driver's License Program in accordance with Sections 24-4 -103, 42- 2- 111(1)(b), 42- 2- 403(2)(a), 42- 2- 407(8), CRS. (2) The purpose of these rules is to ensure compliance with state and federal requirements to promote the safety and welfare of the citizens of Colorado. B. INCORPORATION BY REFERENCE OF FEDERAL RULES (1) Adoption: The Department incorporates by reference the Federal Motor Carrier Safety Regulations Part 383, 384, 390, and 391, Qualifications and Disqualification of Drivers. (2) The Federal Regulations incorporated or referenced by this rule are published in the Code of Federal Regulations, Title 49, Part 383, 384, 390, and 391, revised as of May 2007. Material incorporated by reference in this rule does not include later amendments to or editions of the incorporated material. The Federal rules and regulations referenced or incorporated in these rules are on file and available for inspection by contacting the Motor Carrier Services Division of the Department of Revenue, 1881 Pierce Street, Room 118, Lakewood, Colorado, 80214, 303 -205- 5600, and copies of the materials may be examined at any state publication depository library. *Matter incorporated by reference. C. DEFINITIONS (1) AAMVA: American Association of Motor Vehicle Administrators is a voluntary, nonprofit, tax exempt, educational unit that represents state and provincial officials in the United States and Canada who administer and enforce motor vehicle laws. (2) CDL: Commercial Driver's License means a license issued to an individual in accordance with the requirements of the federal "Commercial Motor Vehicle Safety Act of 1986." The document issued by the Department entitles the holder while having such document in his/her immediate possession, to drive a motor vehicle of certain classes and endorsements upon the highways without supervision. (3) CDL Instruction Permit: The permit issued by the Department entitling the applicant, while having such permit in his/her immediate possession, to drive a motor vehicle of certain classes and/or endorsements upon the highways with a driver that possesses a CDL with the same class and/or endorsements or higher, as the CDL Instruction Permit driver. (4) CDL Vehicle Class: A group or type of vehicle with certain operating characteristics. (5) CDLIS: Commercial Driver's License Information System is the central database that stores the list of CDL drivers, in addition, the drivers' state of record. 11 12 -2 -11 (6) CDL driving tester or driving tester: An individual licensed by the Department under the provisions of Section 42 -2 -407, CRS to administer CDL driving tests. (7) CDL testing unit or testing unit: A business, association, or governmental entity licensed by the Department under the provisions of 42- 2-407, CRS to administer CDL driving tests. (8) CMV: Commercial Motor Vehicle means a motor vehicle designed or used in commerce to transport passengers or property, if the vehicle, has a gross vehicle weight rating of 26,001 or more pounds or such lesser rating determined by federal regulation; or is designed to transport sixteen or more passengers, including the driver; or is transporting hazardous materials and is required to be placarded. (9) CRS: Colorado Revised Statutes. (10) Department: Colorado Department of Revenue. (11) Disqualifications: The suspension, revocation, cancellation, or any other withdrawal by the Department of a person's privilege to drive a CMV or a determination by the FHWA under the rules of practice for motor carrier safety contained in Part 386 of this title, that a person is no longer qualified to operate a CMV under Part 391; or the loss of qualification that automatically follows conviction of an offense listed in FMCSR 383.51 (12) DPOS: Division of Private Occupational School, a division of the Colorado Department of Higher Education. (13) Designed to Transport: The manufacturer's original rated capacity of the vehicle. (14) Endorsements: This is a letter indicator added to a CDL and/or permits that indicate successful completion of the appropriate knowledge and/or skill test(s) that allows the operation of a special configuration of vehicle(s). (a) T = Double /triple trailers (b) P = Passenger (c) N = Tank vehicles (d) H = Hazardous materials (Not indicated on permit) (e) S = School buses M X = Combination of tank vehicle and hazardous materials (Not indicated on permit) (g) M = Motorcycle (h) 3 = Three wheel motorcycle (15) Exemptions: Regulatory relief given to a person or class of persons normally subject to regulations without the exception. (16) Farm Custom Harvester: An individual engaged in seasonal custom - harvesting operations. (17) Farm- Related Service Industry: Is an entity with special Federal Motor Carrier Safety Administration designation that provides farm- related services such as: (a) Agri- chemical businesses; 12 12 -2 -12 (b) Custom harvesters; (c) Farm retail outlets and suppliers; and (d) Livestock feeders. (18) FHWA: Federal Highway Administration is an agency within the USDOT. (19) FMCSA: Federal Motor Carrier Safety Administration is an agency within the USDOT. (20) FMCSR: Federal Motor Carrier Safety Regulations (49 CFR Parts 350 -399). (21) GCWR: Gross Combination Weight Rating is the value specified by the manufacturer as the loaded weight of the combination (articulated) vehicle. In the absence of a value specified by the manufacturer, GCWR will be determined by adding the GVWR of the power unit and the total weight of the towed unit and any weight thereon. (22) Government: means a state, county, city and county, municipality, school district, special improvement district, and every other kind of district, agency, instrumentality, or political subdivision thereof organized pursuant to law and any separate entity created by intergovernmental contract cooperation only between or among the state, county, city and county, municipality, school district, special improvement district, and every other kind of district, agency, instrumentality, or political subdivision thereof. (23) GVWR: Gross Vehicle Weight Rating is the value specified by the manufacturer as the loaded weight of a single vehicle. (24) Intrastate Driver: A driver authorized to operate a CMV within the boundaries of Colorado, and not authorized to transport items of interstate commerce or hazardous materials. (25) Interstate Commerce: Trade, traffic or transportation in the United States between a place in the state and a place outside of such state, including outside of the United States or between two places in a state as part of trade, traffic, or transportation originating or terminating outside the state or the United States. (26) Interstate Driver: A CDL holder authorized to cross state lines and transport interstate commerce while operating a CMV. (27) NDR: National Driver Register maintains the national database of driver histories. Each applicant's driving history shall clear NDR prior to the issuance of a CDL. (28) Non - Profit: An organization filing with the United States Code 26USC Section 501(c). (29) CDL Passenger Vehicle: For the purposes of these rules a passenger vehicle designed to transport 16 or more passengers, including the driver. (30) Paved Vehicle Control Testing Area: For the purpose of these rules, a paved testing area is a surface made up of materials and adhesive compounds of a sufficient depth and strength prepared to provide a durable, solid, smooth surface upon which an applicant will demonstrate basic vehicle control skills. (3 1) Public Transportation Entity: A mass transit district, mass transit authority, or any other public entity authorized under the laws of this state to provide transportation services to the general public. 13 12 -2 -13 (32) Representative Vehicle: A motor vehicle, that represents the group or type of motor vehicle that an applicant operates or expects to operate. (33) Restrictions: Prohibits the operation of certain types of vehicles or restricts operating a CMV within designated boundaries. (34) Salaried: A paid employee. (35) USDOT: United States Department of Transportation. (36) Vehicle Test Area Marking: The paved testing area will be painted to delineate boundaries for each of the vehicle control skill tests. The area provides a defined test area with traffic cones placed according to Department standards. D. APPLICANT LICENSING REQUIREMENTS (1) Each applicant for a CDL or instruction permit shall be a resident of Colorado, at least 18 years of age, and comply with the testing and licensing requirements of the Department. (a) The CDL and instruction permit will indicate the class of license, any endorsements and any restrictions for that individual driver. The CDL is valid for the operation of a non - CMV including a motorcycle with the appropriate motorcycle endorsement on the license. (b) A valid CDL may be transferred from another state authorized to issue a CDL. (2) Prior to the issuance of a CDL or instruction permit, each applicant shall provide evidence of his/her social security number (SSN) in accordance with Department procedures. (3) Each applicant shall meet the medical and physical qualifications under FMCSR Part 391.41 * and have this examination verified on a DOT medical examination form. Unless the following exceptions apply, each driver shall carry this medical examination form or the medical examiner's certificate on his/her person when operating a CMV: (a) Individuals holding a waiver issued by the Colorado State Patrol or the FMCSA. (b) Those who are exempted under FMCSR Part 391.2* for an individual engaged in farm custom operations; custom harvesting; transporting farm machinery, supplies or both; and certain farm vehicles. *Matter incorporated by reference. E. ENDORSEMENTS (1) T- Double/Triple Trailers: Required to operate a CMV used for drawing two or more vehicles or trailers with a GCWR that is 26,001 lbs. or more and combined GVWR of the vehicles being towed are in excess of 10,000 lbs. (2) P- Passenger: Required to operate a vehicle designed by the manufacturer to transport 16 or more passengers, including the driver. 14 12 -2 -14 (3) N -Tank Vehicles: Required to operate a vehicle to haul liquid or liquid gas in a permanently mounted cargo tank rated at 119 gallons or more or a portable tank rated at 1,000 gallons or more. (4) H- Hazardous Materials: Required to transport materials that require the motor vehicle to display a placard under the hazardous materials regulations. (5) S- School Buses: Required to operate a school bus used to transport public, private, parochial or any other type of pre - primary, primary, or secondary students from home to school, from school to home or to and from school sponsored events. (6) X- Combination Tank/Hazmat: Required to operate vehicles that meet the definition of (3) and (4). F. RESTRICTIONS (1) Intrastate: The letter "K" is added to the CDL of a driver between the ages of 18 through 20, and/or a driver who has been issued a valid medical waiver from the Colorado State Patrol. Under this CDL restriction, the driver shall not: (a) Operate a CMV outside the state boundaries; (b) Transport interstate commerce as defined in the FMCSR 390.5 *; or (c) Transport hazardous materials requiring a placard or commodities with a hazard class or subject to the "poison by inhalation hazard" shipping description. * Matter incorporated by reference. (2) Air brake: The letter "L" is added to the CDL of an individual restricted from operating vehicles equipped with air brakes. Air - over - hydraulic or assisted brake systems are not considered full air brake systems. (a) The "L" restriction is removed by successfully completing the air brake knowledge test and the driving skill test's in a vehicle equipped with air brakes and is representative of the vehicle class. (b) Before taking the driving skill tests in a vehicle equipped with air brakes, the individual shall have in his/her possession a CDL permit without the "L" restriction. (3) No Tractor Trailer: The letters No Trctr Trlr, restrict operation of a truck tractor unit (laden or unladed) designed and used to draw a semi - trailer or tractor. A "NO TRCTR TRLR" will be placed on the Class A CDL restricting the driver from operating a Class A vehicle with a power unit that has a GVWR of 26,001 lbs. or more. (a) The "NO TRCTR TRLR" restriction can be removed by successfully completing the driving skill tests in a Class A vehicle with a power unit that has a GVWR of 26,001 lbs. or more. (b) Before taking the driving skill tests in a Class A vehicle with a power unit that has a GVWR of 26,001 lbs. or more, the driver shall have in their possession a CDL Instruction permit without the "NO TRCTR TRLR" restriction. 15 12 -2 -15 G. EXEMPTIONS (1) FMCSR Part 383.3. Applicability authorizes the state to grant certain groups exceptions from the CDL requirements. (a) FMCSR — Part 383.3 (c): Exception for certain military drivers. (b) FMCSR — Part 383.3 (d)(l and 2): Exception for farmers and firefighters are applicable to CRS 42 -2-402 (4)(b)(III) and (IV). (c) FMCSR — Part 383.3 (d)(3): Exception for drivers removing snow and ice. (d) FMCSR— Part 383.3 (f): Restricted CDL for certain drivers in farm- related service industries. (2) FMCSR Part 391.2 specifies the exceptions to the physical qualifications for individuals engaged in custom harvesting operations in FMCSR 391.2 *. * Matter incorporated by reference. H. ENTITY ELIGIBLE TO APPLY FOR A TESTING UNIT LICENSE (1) The Department may authorize a testing unit to administer the CDL driving skill tests on behalf of the Department if such training and testing is equal to the training and testing of the Department. (2) Enter into a written contract with the Department and agree to: (a) Maintain an established place of business in Colorado with a vehicle fleet of no less than three CMV's owned, leased or registered to the testing unit, the business owner or an employee of the business; or (b) Maintain an adult education occupational business license with the Division of Private Occupational School, a division of the Colorado Department of Higher Education; or (c) Be an agency of government, public school district, private or parochial school or other type of pre - primary, primary, or secondary school transporting students from home to school or from school to home. I. TESTING UNIT REQUIREMENTS (1) An entity shall apply for and receive a CDL testing unit license from the Department in order to administer CDL driving skill tests for the licensing period. The CDL testing license expires on June 30' of each year. The license(s) for both the testing unit and driving tester(s) shall be displayed in the place of business. (a) Testing unit license fees are: $300.00 initial license; $100.00 annual renewal fee; (b) Driving Tester License fees are: $100.00 initial license; $50.00 annual renewal fee; (c) Driving tester license transfer fee: $50.00. Transferring from one unit to another within six months of leaving a unit. 16 12 -2 -16 (d) Fees are waived for units and testers that only provide public transportation. (e) Public transportation units that test outside of their unit and do not provide public transportation only, shall submit the appropriate fees. (f) If a license is not renewed on or before June 30` of each year, the initial fees will apply. Unit and driving tester license(s) may be suspended or inactivated until appropriate fees and documentation are submitted. (g) Licenses can be renewed 60 days prior to June 30 of each year. (2) Testing units shall only test with a valid license issued by the Department. (3) Testing units shall ensure that each driving tester has a valid license issued by the Department to administer CDL driving skill tests. (4) The testing unit shall notify the Department in writing within 3 working days of the termination or separation of any driving tester. (5) The place of business shall be a separate establishment and may not be part of a home. The CDL testing unit shall comply with city zoning and code requirements. The unit's physical address shall not be a post office box. (6) The testing unit shall have written permission from the landowner to administer the CDL vehicle basic control tests on areas not owned by the testing unit. This written permission shall be submitted to the Department for approval prior to testing.] (7) The testing unit shall maintain at least one salaried employee who is licensed and designated as a CDL driving tester. (8) The testing unit shall ensure that the unit's driving tester(s) administer the CDL driving skill tests as outlined by Department. (9) The testing unit shall ensure that the unit's driving tester(s) complete all CDL Third Party Testing forms correctly. (10) The testing unit shall ensure that the unit's driving tester(s) administer the CDL driving skill tests to drivers in the vehicle class and/or endorsement(s) that the driver has on his or her instruction permit or CDL. (11) The testing unit is responsible for ensuring that the testers attend all mandated training provided by the CDL Compliance Section. Failure of the tester to attend scheduled training may result in the suspension of testing privileges. (12) The testing unit shall submit a weekly testing schedule to the CDL Compliance section. This weekly testing schedule will start on Monday and conclude on Sunday. Weekly schedules shall be submitted by electronic mail or faxed no later than the Friday prior to the week of testing. The weekly testing schedule shall include the: unit's name, unit's number, the driver's name, tester's number, location, date and time of test. The CDL Compliance section shall be notified of all canceled tests at least four (4) hours prior to the scheduled test or as soon as the testing unit or driving tester is aware of the change. 17 12 -2 -17 (13) Driving testers within a testing unit shall administer a minimum of four (4) complete CDL driving skill tests during the previous licensing period to be eligible for renewal. (14) The testing unit shall ensure that the unit's driving tester only issues the Colorado CDL Driving Skill Test Completion form for the class of vehicle that the applicant has successfully completed the driving skill test. (15) The testing unit will allow CDL driving skill tests only on Department approved testing areas and routes. (16) All three portions of the CDL driving skill tests shall be conducted during daylight hours. (17) The testing unit shall enter into an agreement with the Department containing, at a minimum, provisions that: (a) allow the FMCSA, the Department and their representatives to conduct random inspections and audits without prior notice; (b) require the Department to conduct on -site inspections at least annually; (c) require all driving testers to meet the same training and qualifications as state examiners, to the extent necessary to conduct CDL driving skill tests in compliance with these rules and regulations; (d) Required that, at least on an annual basis, Department employees shall take the tests administered by the testing unit as if the state employee were a test applicant, or the Department shall test a sample driver(s) who was tested by the third party to compare pass -fail results; and (e) Allow the Department the right to take prompt and appropriate remedial action against any testing unit or driving tester when such driving tester fails to comply with Department or federal standards or any other items of the contract or the rules and regulations. (f) Ensure driving testers that test outside of their unit obtain the AAMVA CDL third party tester certification by December 31 of each year, as required by the Department. AAMVA membership fees are the responsibility of the driving tester. (18) Charge fees only in accordance with 42- 2-406, CRS. A tester and a testing unit shall only charge for tests administered. (a) The fees for the administration of driving skill tests for commercial drivers shall not exceed the sum of one hundred seventy -five dollars. (b) The fees for the administration of driving skill tests for commercial drivers to any employee or volunteer of a nonprofit organization that provides specialized transportation services for the elderly and for persons with disabilities, to any individual employed by a school district, or to any individual employed by a board of cooperative services shall not exceed one hundred dollars. (c) The fees for the administration of a retest for a commercial driver after failing all or any of the driving tests shall not exceed one hundred seventy -five dollars. 18 12 -2 -18 (d) The fees for the administration of a retest for a commercial drivers to any employee or volunteer of a nonprofit organization that provides specialized transportation services for the elderly and for persons with disabilities, to any individual employed by a school district, or to any individual employed by a board of cooperative services shall not exceed one hundred dollars. (19) Make all CDL testing records available for inspection during regular business hours. (20) Hold the state harmless from liability resulting from the administration of the CDL program. (21) Make annual application for renewal of the unit's testing license and individual tester license(s) before the license expires on June 30` of each year. J. DRIVING TESTER REQUIREMENTS (1) The driving tester shall possess a valid USDOT medical card and a valid CDL with the appropriate class and endorsement(s) to operate the vehicle(s) in which the CDL driving skill tests are administered. (2) The driving tester shall conduct the full CDL driving skill tests in accordance with Department procedures and shall use state grading forms. (3) The driving tester shall administer all portions of the CDL driving skill tests in English. (4) Interpreters are not allowed for any portion of the driving skill tests. (5) The driving tester agrees as part of the application to hold the State harmless from the liability of CDL driving skill testing. (6) The driving tester shall test in the CDL class of vehicle or endorsement(s) group authorized by the Department. (7) Prior to administering the CDL driving skill tests, the tester shall ensure that the applicant has in his/her immediate possession, a current USDOT medical card, a current CDL instruction permit or a current CDL for operating the class and endorsement(s) of vehicle being used for testing. (8) The driving tester shall ensure that the vehicle that the CDL Skill tests will be administered in shall be in proper working and mechanical order. (9) A driving tester removed from performing a safety sensitive function, shall not perform any functions under the CDL Third Party Testing Program. (10) The vehicle inspection, the basic vehicle control skills and the on -road driving tests shall be administered by the same tester in sequential order with no more than a 15- minute break between each test and the road test. Tests shall be scheduled to avoid the lunch break. (11) The driving tester shall be employed by a licensed testing unit prior to attending a new CDL Third Party tester's training class. (12) The driving tester may only administer the CDL driving skill tests on a test area and route that has been approved by the Department. With prior approval from the Department, a driving tester may use an alternate test area and route that has been approved by the Department. 19 12 -2 -19 (13) The driving tester shall inform the applicant that he /she maybe randomly selected for a retest as mandated by the FMCSR 383.75(a)(2)(iv) *. The driving tester shall ensure that the applicant reads and signs the DR2736 (Colorado CDL Driving Skill Test Completion form). * Matter incorporated by reference. (14) The driving tester may administer CDL driving skill tests as an employee of, and on behalf of, the licensed testing unit. The driving tester may administer tests for more than one unit. However the driving tester shall be licensed under each unit to conduct testing on his/her behalf. The tester shall keep all CDL records separate for each testing unit. License fees shall apply. (15) If an applicant fails any portion(s) of the CDL driving skill tests they shall return on a different day and perform all three (3) portions of the test over. (16) The driving tester shall administer at least four (4) complete CDL driving skill tests within the twelve -month period preceding the application for renewal from the Department. (17) The driving tester shall verify the identity of the driver by comparing the photo on a drivers' license with the driver. (18) Upon leaving a testing unit, the driving tester's license may be transferred to another testing unit within 6 months. If the tester is not employed at a licensed testing unit within 6 months, the tester will be required to attend a new tester training class to be licensed by the Department. All training and license fees shall apply and are the responsibility of the tester. (19) The driving tester cannot administer CDL tests to a driver that he /she has trained within the same day. K. COURSE AND ROUTE REQUIREMENTS (1) A testing unit shall have a paved area for the CDL vehicle inspection; vehicle control skill testing that is large enough to administer all of the required CDL control maneuvers. These include: (a) Solid painted lines and traffic cones shall be used to mark the testing boundaries in accordance with Department standards. (i) Traffic cones used to mark the test boundaries shall be a minimum of twelve inches in height and the same size traffic cones shall be used for each maneuver. Traffic cones shall be replaced when they are no longer retaining the original shape and color. (b) The vehicle control testing area shall be cleared to a condition that allows the applicant to readily determine the boundary lines and cones during the test. (i) The testing area boundaries shall be cleared of snow, debris, or vehicles that would obstruct the applicant's view during the vehicle control maneuvers. (ii) Testing on dirt, sand or graveled area is not allowed. (c) The testing unit shall request and receive approval from the Department for any change(s) to the approved road test route prior to administering a CDL road test. 20 12 -2 -20 L. RIGHTS (1) The driving tester may refuse to test an applicant. The tester shall notify the CDL Compliance section if an applicant is refused a test and refer that applicant to the CDL Compliance Section. (2) Governmental driving testers who want to test outside of their own unit shall request, in writing, and receive approval from the CDL Compliance Section prior to administering CDL tests. M. RECORDING AND AUDITING REQUIREMENTS (1) An applicant who has successfully completed the driving skill tests shall be issued the "Colorado CDL Driving Skill Test Completion" form (DR 2736). The testing unit will retain the carbon copy of this form and attach it to all of the applicant's score form(s) for the testing unit's records. This form is not authorization to the driver to drive unsupervised. (2) The CDL Compliance Section shall be notified in writing after an applicant fails the road test portion of the driving test. All failures shall be reported on the monthly report and testers shall fax or send electronically the failed road test (front and back) score form to the CDL Compliance Section no later than 5 p.m. of the following business day. (3) The testing unit shall maintain all pass /fail records for three years. These will include the CDL driving skill testing records for each driver tested, the dates of the testing, the applicant's identification information, the vehicle information and the name and state assigned tester number who administered the test. If a testing unit becomes unlicensed, the unit shall return all testing records to the Department within 30 days. (4) A testing unit shall prepare and submit a monthly report of testing results to the Department. The report shall include: the unit's name, the unit's number, the name of each applicant tested, CDL permit Number, endorsements (H, X, P), the length of time it took to administer the test (i.e. start and completion time), and the pass /fail results. These reports shall be submitted to CDL Compliance Section by the fifth day of each month (a) After three years, testing units may destroy all pass/fail records (shred, burn). (5) During CDL compliance audits and/or inspections, driving testers shall cooperate with the Department and FMCSA, by allowing access to testing areas and routes, furnishing driving skill testing records and results, and other items pertinent to the mandated inspection. The tester must surrender testing records upon request. The tester may make copies and retain copies of such records. (6) If the testing unit provided the vehicle for the initial test, the testing unit will furnish the vehicle for a driver selected for a retest. No fees, including any vehicle rental fees required for testing will be collected for this mandatory evaluation. The Department shall not be held liable during retests for any damage, injury or expense incurred. (7) If the driver tested in his/her own vehicle, the driver selected shall supply the vehicle for the test. (8) The testing unit will not be authorized to conduct any further testing if the CDL Compliance Section determines that the testing unit is not cooperating with the audit requirements. 21 12 -2 -21 N. BOND (1) A testing unit that is not an agency of government, or any Colorado school district, shall maintain a bond in the amount of $20,000.00 with the Department. A surety company authorized to do business within the State of Colorado shall execute the bond. (a) The bond shall be for the use and benefit of the Department in the event of a monetary loss within the limitations of the bond, attributable to the willful, intentional or negligent conduct of the testing unit or its agent(s) or employee(s). (b) If the amount of the bond is decreased or terminated, or if there is a final judgment outstanding on the bond, the testing unit's license shall be suspended. The suspension shall continue until satisfactory steps are taken to restore the original amount of the bond required by the Department. (2) A testing unit that is an agency of government, or any Colorado school district, that will administer CDL driving tests outside of their unit, shall maintain a bond in the amount of $5,000.00 with the Department. A surety company authorized to do business within the State of Colorado shall execute the bond. (a) The bond shall be for the use and benefit of the Department in the event of a monetary loss within the limitations of the bond, attributable to the willful, intentional or negligent conduct of the testing unit or its agent(s) or employee(s). (b) If the amount of the bond is decreased or terminated, or if there is a final judgment outstanding on the bond, the testing unit's license shall be suspended. The suspension shall continue until satisfactory steps are taken to restore the original amount of the bond required by the Department. O. ETHICAL REQUIREMENTS FOR THIRD PARTY TESTING UNITS (1) No advertisement shall imply that a unit can issue or guarantee the issuance of a CDL. (2) No advertisement shall imply that the unit has any influence over the Department in the issuance of a license. (3) No tester, employee, or agent for the testing unit will be permitted to solicit on the premise of a Colorado State Driver License Office. (4) No test can be administered unless the applicant is present. (5) A fee cannot be collected unless an applicant is present. P. REVOCATION, CANCELLATION OR SUSPENSION OF TESTING UNITS AND TESTERS. (1) The license of a testing unit or driving tester may be suspended or revoked for willful or negligent actions that may include but are not limited to any of the following: (a) Misrepresentation on the application to be a testing unit or driving tester; 22 12 -2 -22 (b) Improper testing and certification of an applicant who has applied for a CDL; (c) Falsification of test documents or results; (d) Violations of the provision of the CDL rules related to the testing unit and driving testers; (e) Failure to employ a minimum of at least one licensed CDL tester; (f) Willful action to avoid or the refusal to cooperate in a CDL Compliance audit and record review; and (g) Violations of the contract terms and conditions; and (h) For cause. (2) Summary Suspension: The Department may issue an immediate cease testing notice if it has reasonable grounds to believe that a testing unit or driving tester has deliberately and willfully violated the provisions of these rules or the law, or that the public health, safety or welfare imperatively requires emergency action. The cease testing notice shall operate as a summary suspension of the license, and testing shall not be permitted until the issue is resolved. The notice shall state the reason(s) for the order, shall offer the tester or testing unit a hearing, and shall be sent to the tester or testing unit at issue. If the tester or testing unit requests a hearing, proceedings for suspension or revocation of the license shall be promptly instituted and determined. (3) Appeal Process: A testing unit or driving tester may contest a cease testing notice, notice of suspension or a notice of violation by requesting a hearing. The request must be submitted in writing and appropriately labeled, such as "CDL Cease Testing Appeal," to the Department of Revenue, Hearings Division, 1881 Pierce Street, Room 106, Lakewood, Colorado, 80214. Subsequent appeal may be had as provided by law. (4) Material incorporated by reference in this rule does not include later amendments to or editions of the incorporated material. Copies of the material incorporated by reference may be obtained by contacting the Division of Motor Vehicles, Division of MCS of the Department of Revenue, 1881 Pierce Street, Room 118, Lakewood, Colorado, 80214, 303 - 205 -5600, and copies of the materials may be examined at any state publication depository library. 23 12 -2 -23 Attachment A LAND USE AUTHORIZATION The land used for the purposes of driver skill testing not owned by the CDL Testing Unit shall require written permission from the respective landlord or land owner on this form and submit to the CDL Compliance Section for approval prior to driver skill testing. This certification confirms that Landowner (print) is the property owner of the land located at: Property address This property will be used for the purposes of CDL driver skill testing and access to the testing area will be granted to the CDL Compliance Section for inspection at any time. grants permission to Landowner (print) Landowner Representative (print) for the purposes of CDL Testing Unit name administering the CDL driving skills test and State inspections. Landowner Representative (signature) Phone # Date This authorization expires on (Date, if applicable) For: CDL Compliance Section 24 12 -2 -24 Attachment B Colorado Third Party Testing Professional Code of Ethics It shall be the guiding purpose and the individual duty of every licensed Third Party Testing unit and Tester to: RECOGNIZE that this is a position of highest public trust, and that many people depend upon the wisdom of your decisions. IMPARTIALLY administer all official duties without regard to race, gender, creed, national origin, position or influence. CONDUCT all examinations in a manner reflecting their importance to public safety. SERVE the public with all possible promptness and courtesy. REJECT all presents and favors from applicants or others relating to your official duties. CONVEY only authorized information to the public. SERVE people with disabilities in an impartial manner. WORK only by official testing standards -- never substituting personal ideas for prescribed methods. MAINTAIN professional appearance and demeanor. INTERACT professionally with co- workers, supervisors, medical and vision specialists, and other professionals. MAINTAIN awareness of developments in the safety related field. UPHOLD the honor and dignity of the profession, by reporting any fraudulent activities. CARRY out all duties not specifically covered by this code with the safety and welfare of the public as the controlling motive. 25 12 -2 -25 Attachment C OPTION LETTER No. (Date) , Fiscal Year (`FY ") In accordance with Section of the Contract dated (Contract Routing No. ) , between the State of Colorado, Department of Revenue, and (CDL Testing Unit's Name), DOR hereby exercises the option for an additional () year's performance period from 20_ through 20 State of Colorado: Bill Ritter, Jr., Governor By: For the Executive Director Colorado Department of Revenue Date: 26 12 -2 -26 tr * /per / g EXHIBIT A 7 Plaintiffs' Ownership Spreadsheet Club Unit Total Number Owner(s) Number(s) Unit Weeks Owned of Unit Weeks 4-H Fami LLC Owned 222 2 & 25 2 Aldred, Peter Duncan 318A 6&7 Aldred, Caroline Louise 3188 6&7 4 Allie's Cabin LLC 407 5 6 7 8 30 & 31 6 Angel, Stephen F. 314A NY 7 26 27 & Xmas Angel, Dolores W. 314B NY 7 26 27 & Xmas 10 Astralgus Office Pty Ltd as Trustee for the Astral us Trust 407 11, 12, & 13 3 214 NY & 1 Aurora Investment LLC 227A NY & 1 6 227B NY & 1 Bafer LLC 218 6 & 13 2 Bausch Laverne Maree 108 1 & 2 2 Bergquist, Peter ger i Sue Mo 503 8 & 9 2 Blatchley, Ron 310A 4 27 28 29 30 Blatchie`, Ruth A. 310B 4 27 28 29 30 10 Blum, Peter Gregory 310A 8 & 9 Blum, Diane Lindstadt 310B 8&9 4 Boca Terry, LLC 308 430, 31 3 Bommarito, Salvatore J. Bommarito Alison Mass 404 NY & Xmas 2 Bond, Christopher J. 222 8 & 9 2 Bond Carol -Ann Brink Cynthia W. 402 9 & 10 2 Brook, Paul Fiorino Frances C. 308 2&3 2 Brown, Daniel 121A 11 & Xmas Brown, Maria 121B 11 &Xmas 4 Bunting, Charles B. 222 11 & 12 2 Bunting, She Campbell, Mark G. 311 8, 12, 47 3 Campbell, Martha J. Canter, Ardour 503 30 & 31 2 Canter Jud Casben Limited 218 5&9 2 Chasanoff , Sally 214 4 & 30 2 Churchill, Edward S. 311 4, 5, 6, 7, 9 & 10 6 Churchill JoAnn M. Clark, Harry 405 NY, 8 & 9 3 Clark Katherine Clark, Reid M. 427 10&11 2 Clark Betsy L. Clay, Bruce J. 118 6&7 2 Clay, Debra A. Coffman, Barry 312 6, 7, 11 3 Coffman Linda C. Colon - Gerona, Jorge 310A NY & 1 4 Roddouez, Maria M. 3106 7r NY & 1 IR Doc # 2023509 1 r , EXHIBIT A Plaintiffs' Ownership Spreadsheet Club Unit Owner(s) Total Number Number(s) Unit Weeks Owned of Unit Weeks Owned Congdon, James Congdon, Mary Alice 218 10 & 31 2 Covenant Equipment & Property, Ltd. 318A 8&9 Crank, Bethany 3188 8&9 4 Schickel, Ronald C. 214 10 & Xmas 2 Deanne Chambers Amended and Restated Revocable Trust 407 10 & Xmas 2 Dobbin, Ross G. Dobbin Patricia A. 311 2&3 2 Caporizzo, Thomas J. Capporizzo, Jo-Ann Dykes, James 222 27 & 28 2 Dykes, Carole Emanuel, Eric R. 223A 11 &28 Emanuel, Jacqueline A. 223B 11 &28 4 Engleka, Millard F. En leka Giselle 406 12 & Xmas 2 Fitzgerald, Brendan V. Fitzgerald, Kathleen P. 224A 4, 5, 8, 9, & 12 Conway, David L. and Patricia A., Trustees of 10 the David L. Conway and Patricia A. Conway 2248 4, 5, 8, 9 & 12 1982 Inter Vivos Trust Fleekop, Kenneth 214 6&7 2 Fleeko Deborah Fosnaught, Nancy 503 4 & 11 2 Steinheiser, Chris Davis, Nancy S. FrAing, Robert G. i DECEASED 406 1, 30 & 31 3 Gast, John Jr. Gast Zdenka 502 NY & Xmas 2 Gilbert, James A. 314A 8&9 Gilbert, Marie M. 314B 8&9 7 Goldman, Martin 406 27 Goldman Geor can 222 5 & 29 2 Gonzalez, Gerardo Zirion 108 13 & 14 2 Gordon, Debra T. Gordon Michael A. 118 10&11 2 Heam, R. Anthony 118 2&9 2 Heam Monica McDonald Hegarty, Connie 308 10 &Xmas 2 He a William Heliox Capital Lt. 316 8 & Xmas 4 427 31 &32 Hennessy, John M. 404 12 & 13 2 Hoffman Tommy Z. 108 NY & 11 2 Honsberg, Alfred 223A 4,29 & 30 Cecilia Quintanilla 223B 4 29, & 30 6 IR Doc # 2023509 2 r EXHIBIT A Plaintiffs' Ownership Spreadsheet Club Unit Owner(s) Total Number Number(s) Unit Weeks Owned of Unit Weeks Jamieson Christina wed 402 23 & 24 2 Jeffer, Jill 214 2 & 14 2 John H. Hobart Trust 405 3 & Xmas 2 Koerte, Paula 223A 7 g & 9 Koerte, Ludwig 223B 7 8, & 9 6 Langeberg, Don Lee Langebera Elaine Francis 118 12, 25, & 31 3 Lasky, Jerry 314A 28 & 29 4 Lavandero, Ricardo Garia 314B 28 & 29 Arrom Yamira Perz 503 NY & 10 2 Lessar, Troy Lessar, Heather 427 6 & 26 2 Linakis, Greg Linakis Paulette 405 5&6 2 Marino, Darren James 223A 2&10 Ewing, Patrick 223B 2&10 4 Mazin, George Mazin Trudy 222 3&4 2 MB & Sons Inc. 121B NY & 1 2 McCoy, Keith 504A NY & Xmas McCoy, Beck 504B NY &Xmas 4 McDonald, Kevin C. McDonald Aramie 308 6&7 2 McVey- Fairchild Living Trust 315A 10 & 29 4 Miller, Jan 315B 10 & 29 Miller, Sharon D. 208 8&9 2 Miller, Robert Miller Paige W. 506 2&9 2 Mogan, Glen, MD M 222 1 & 7 2 Mogan, Diane 311 NY & 1 Moncor Trust 224A NY & 1 6 Mulhem, Lori 224B NY & 1 Mulhem Michael 317 NY & 26 2 Neborak, Michael K. 121A 6&10 4 121 B 6&10 Nesmari LLC 308 NY & 1 2 Niederauer, Duncan Niederauer, Alison J. 405 1 10 & 11 3 Ocej Guillermo 214 8 & 13 2 Pearson, Alan 225A 7&8 Pearson, Leslie 225B 7&8 4 Perez, Noel 223A NY & 26 Perez, Lourdes Valdez 223B NY & 26 4 Perry, Timothy E. 407 NY & 32 2 Perry Heidi W. IR Doc # 2023509 3 EXHIBIT A Plaintiffs' Ownership Spreadsheet Club Unit Total Number Owner(s) Number(s) Unit Weeks Owned of Unit Weeks Own Pi kin David 222 NY & Xmas 2 ad PS Drummond Family Trust 218 1&2 5 Potylchansky, Yury 402 1, 2 3 Potylchansky, Elena 406 NY & 8 2 Puig, Raul Pui , Elsa 218 3 & 12 2 Robert M. Co Jr. Revocable Trust 218 8 25 29 & 33 4 Robichaux, Amy L. Robichaux T.D. 402 NY & 26 2 Rosenbloom, Jerald 321A 6 & Xmas Sussman, Nan. M. 321B 6 & Xmas 4 Roski, Dudley 314A 10&11 Roski, Vicki 314B 10&11 4 Ruette LLC 406 5, 6,7 & 32 4 Schmid, William E. Schmid Deborah A. 208 NY, 1 &2 3 Shah, Katie Shah Dhiren 506 11 & 12 2 Shouviin, Margaret Martin 310A 10&11 4 Smitham, Lynne H. 3108 10&11 Smitham Peter 505 NY, 1, 2, 3, 49 & Xmas 6 Stachelek, Conrad Stachelek Janet L. 403 10&11 2 314A 6 Stodghill Contracting LLC 314B 6 4 SVT Realty 403 6 &7 108 7 9 10 3 Toxey, Andrew G. Toxey, Mario A. 208 3, 4, & 5 3 Tuttle, Kimberly Bard ette John E. 214 3 & 31 2 Vaudreuil Sheila B. 402 4 & 12 2 Vamum, Nylsa Maria 427 NY & Xmas 2 VCVPC LLC 501 NY & Xmas 2 VP36 Realty Investment LLC 403 NY 1 26 & Xmas 4 Waka Lain 503 1&2 2 Waterfront Development LLC 114 NY & Xmas 2 Waterfront Estates Inc. 118 NY & 1 2 Wen S.Dunster Living Trust 114 6, 7 8 9, 10 & 11 6 Wheat, Doug Wheat, Laura 405 7 2& 28 5 Wintervail LLC 503 6 & Xmas 2 Yoder, Merle E. 321A NY&I Yoder, Nina H. 1 321 B NY & 1 4 TOTAL 336 IR Doc # 2023509 4