Loading...
HomeMy WebLinkAbout2010-11-16 Agenda and Support Documentation Town Council Evening Session VAIL TOWN COUNCIL EVENING SESSION AGENDA "fi TOW VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 6:00 P.M., NOVEMBER 16, 2010 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. ITEM /TOPIC: Citizen Participation (15 min.) PRESENTER(S): Public 2. ITEM /TOPIC: Town Manager Report (15 min.) PRESENTER(S): Stan Zemler 3. ITEM /TOPIC: Consent Agenda Approval of October 5, 2010 and October 19, 2010 meeting minutes. (5 min.) 4. ITEM /TOPIC: A presentation on the fiscal and econimic impacts of the proposed Ever Vail project. (60 min.) PRESENTER(S): Andy Knudtsen, Economic Planning Systems, inc. ACTION REQUESTED OF COUNCIL: The Vail Town Council is asked to listen to the presentaion on the fiscal and economic impacts, ask questions, and provide feedback on the findings. BACKGROUND: In conjunction with the submittal of multiple applications for entitlement of the proposed Ever Vail project, the Vail Town Council contracted the services of Economic Planning Systems, Inc. to conduct both a fiscal and economic impacts study. 5. ITEM /TOPIC: First reading of Ordinance No. 18, Series 2010, an Ordinance making supplemental appropriations to the Town of Vail General Fund, Capital Projects Fund, Real Estate Transfer Tax Fund and the Debt Service Fund of the 2010 Budget for the Town of Vail, Colorado; and authorizing the expenditures of said appropriations as set forth herein; and setting forth details in regard thereto. (30 min.) PRESENTER(S): Kathleen Halloran ACTION REQUESTED OF COUNCIL: Approve or approve with amendments the first reading of Ordinance No. 18, Series 2010. BACKGROUND: To be provided in a separate memo. 11/16/2010 STAFF RECOMMENDATION: Staff recommends that the Town Council approves or approves with amendments Ordinance No. 18, Series 2010, upon first reading. 6. ITEM /TOPIC: Second reading of the 2011 Budget Ordinance No. 17, Series 2010 (20 min.) PRESENTER(S): Kathleen Halloran ACTION REQUESTED OF COUNCIL: Approve or approve with amendments second reading of the 2011 Budget Ordinance No. 17, Series 2010 BACKGROUND: To be provided in a separate memo STAFF RECOMMENDATION: Approve or approve with amendments second reading of the 2011 Budget Ordinance No. 17, Series 2010 7. ITEM /TOPIC: First Reading of Mill Levy Certification, Ordinance No. 20, Series 2010. (10 min.) PRESENTER(S): Kathleen Halloran ACTION REQUESTED OF COUNCIL: Approve Ordinance No. 20, Series 2010, on first reading. BACKGROUND: Mill Levy Assessments must be certified to the County for collection annually; this ordinance authorizes certification. STAFF RECOMMENDATION: Approve Ordinance No. 20, Series 2010, on first reading. 8. ITEM /TOPIC: An appeal, pursuant to Section 12 -3 -3, Appeals, Vail Town Code, of an administrative action, affirmed by the Town of Vail Planning and Environmental Commission, approving a request for a minor amendment to Special Development District No. 6, Village Inn Plaza, pursuant to Section 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for modifications to the approved development plans to increase site coverage and reduce the side setback (east side) to facilitate an expanded chimney for a new restaurant, located at 100 East Meadow Drive, Unit 602/ Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC100044) (30 min) PRESENTER(S): Rachel Dimond, Michael Suman, representative of the appellant ACTION REQUESTED OF COUNCIL: The Vail Town Council shall uphold, overturn, or modify the approval of the minor amendment to Special Development District No. 6. BACKGROUND: On June 9, 2010, a minor amendment to SDD No. 6, Village Inn Plaza, was administratively approved and upheld at the June 28, 2010 PEC hearing. The minor amendments included expansion to site coverage and a reduction in the side setback to accommodate a new hibachi 11/16/2010 restaurant. On September 23, 2010, a second minor amendment was administratively approved and upheld at the October 11, 2010 PEC hearing. The amendment included further increase to site coverage and a reduction in the side setback to allow for the addition of access ladders to the approved chimney chases to meet building code requirements for access and maintenance of rooftop mechanical equipment. 9. ITEM /TOPIC: Resolution No. 28, Series of 2010, a Resolution Approving an Intergovernmental Agreement Between the Town of Vail and the Colorado Department of Transportation Regarding Matterhorn Bridge Replacement; and Setting Forth Details in Regard Thereto. (5 min.) PRESENTER(S): Chad Salli ACTION REQUESTED OF COUNCIL: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with CDOT. BACKGROUND: The Town has been awarded a federal grant for the replacement of the Matterhorn Bridge which is shown in the bridge inspection reports as structurally deficient. At a total project cost of $1,035,000, the bridge grant award total is 80% of the project total or $828,000. The Town is responsible for a 20% local match of the total estimated project costs. This IGA is for the design phase of the project. STAFF RECOMMENDATION: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with CDOT. 10. ITEM /TOPIC: Adjournment 11/16/2010 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: Town Manager Report PRESENTER(S): Stan Zemler 11/16/2010 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: Consent Agenda Approval of October 5, 2010 and October 19, 2010 meeting minutes. ATTACHMENTS: October 5, 2010 Meeting Minutes 11/16/2010 Vail Town Council Meeting Minutes Tuesday, October 5, 2010 7:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 7:00 P.M. by Mayor Dick Cleveland. Members present: Dick Cleveland, Mayor Andy Daly Kerry Donovan Kevin Foley Kim Newbury Margaret Rogers Susie Tjossem Staff members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Participation. Joe Hanlon, Vail Recreation District representative, invited the Council and the public to an open house on Oct 7, 2010 at the Vail Golf Course to review the proposed master plan at 6 p.m. for public comments. James Van Beek, an unaffiliated candidate running for Eagle County Sheriff's office in November, introduced himself to Council and gave a brief presentation about his background and views to Council and wants to give the community personal and more proactive services. Joyce Gedelman- Viers, a Vail property owner, thanked the Commission on Special Events (CSE) for their hard work this past year. She stated she was interested in the vacancy on the CSE but had decided to postpone applying to be on CSE until December when 3 vacancies would be available. She said she heard the Council was going to appoint more people to the CSE than what was published in the notice and said the Council was starting a dangerous precedent in not following what was published in the public notice and not communicating to interested parties what the procedures and process was to the public in advance. She said the Council wouldn't want to undermine their credibility by not following current procedures. The second item on the agenda was the Town Manager's Report. Kathleen Halloran reviewed the monthly Revenue Highlights. October 5, 2010 Town Council Meeting Minutes 1 11/16/2010 3 -I -I The third item on the agenda was the appointment of one member to the Commission on Special Events (CSE). The applicants were interviewed at the afternoon work session. The Council had a discussion on whether to appoint more than one person to the CSE at this time as there were a lot of good candidates for the CSE. The Council decided to vote to fill the one vacancy at this time, for the three month timeframe as published. A vote was taken and a motion was made by Kim Newbury to appoint Amanda Jensen to fill the vacancy on the CSE; the motion was seconded by Andy Daly and the vote was unanimous, 7 -0. The fourth item on the agenda was an appeal, pursuant to Section 12 -3 -3, Appeals, Vail Town code, of the Town of Vail Design Review Board's approval of a design review application, pursuant to Section 12 -11, Design Review, Vail Town Code, to allow for a change to the approved sidewalk paver blend, located at 141 East Meadow Drive. Michael Suman, the in -house architect for Solaris, sent a letter to Council and will be added to the agenda for the record. He apologized to the Council for not following the guidelines. Solaris owners felt they were doing the "better thing" in changing the color of the pavers. Warren Campbell, Community Development Chief Planner, stated on September 7, 2010, the Council voted to call -up the Design Review Board's (DRB), August, 18, 2010, approval of a change to the paver colors on the north side of the Solaris development. On November 20, 1991, the Town of Vail adopted the Streetscape Master Plan which established the paver design and color blend for pedestrian areas. The paver pattern for pedestrian areas was established to be herringbone and the paver color was a unique "Vail Blend" which was a "charcoal grey with reddish /black accent ". These patterns and color blends were reaffirmed in the adoption of the 2003 Streetscape Master Plan Addendum. The Community Development Department recommends that the "Vail Blend" be utilized for the pedestrian sidewalk on the north side of the Solaris development pursuant to the adopted Town of Vail Streetscape Master Plan and the Streetscape Master Plan Addendum. Newbury stated the she was in favor of upholding the DRB decision. Rogers said she agreed with Newbury and stated the Council appoints various community members to the town boards and relies on them to do their job to which they were appointed. She believes the DRB is doing their job and will support their decision. Foley made a motion to uphold the decision of the DRB; seconded by Newbury; Donovan said she was not in favor and will not approve as she feels the applicant October 5, 2010 Town Council Meeting Minutes 2 11/16/2010 3 -1 -2 needs to follow the master plan. A vote was taken and the motion passed 6 -1, with Donovan opposed. The fifth item on the agenda was a request to provide a one year dispensation to Vail Commons Residential Homeowner's Association required land lease payment to the Town of Vail. Nina Timm, Housing Coordinator, stated in December the Vail Commons Home Owners Association ( VCHOA) asked for a dispensation of the land lease payment. Staff would like Council direction on whether the dispensation should be granted and provide staff direction on how to amend the Capital Projects Fund to reflect any changes Council would make to the VCHOA land lease payment. Pursuant to the request from the Vail Commons Residential Homeowners Association "to defer the land lease fee for the maintenance on capital projects ", staff has prepared a memorandum outlining the terms of the Vail Commons Residential Land Lease as well as the terms for other employee housing developments on Town land. Staff does not recommend providing lease payment dispensation for the Vail Commons Residential Land Lease. She introduced Ethan Moore who represents the VCHOA. Moore said the VCHOA understands the amount requested of $38,000 is not insignificant. The VCHOA feels the dispensation is a legitimate request and is in the town's best interest as well. Vail Commons is a valuable asset to the town, is the largest block of owner occupied residences in Vail and they are requesting the VCHOA have temporary access to land lease funds to improve their project on town -owned land. The funds would be redirected for specific improvements to the common elements of the property. Any work done would not increase any maximum sales price. Rogers asked about the capital projects funds. Zemler stated there were far more projects then dollars to fund them. Newbury asked how much land the VCHOA has leased versus the commercial spaces and City Market. Moore said about half of the land is leased by the VCHOA. Timm said in the fifteen years that Vail Commons land lease has been in effect, the cost has never been increased. Matt Mire, town attorney, stated if the Council approves the dispensation, the Council needs to site a purpose or reason as to why they are approving it or it would be illegal. Rogers wanted clarification on whether the request is for forgiveness or a deferral. Moore stated they wanted it to be forgiveness of the payment. She asked for specifics on what the money would be used for. Moore said the money could be used for roof October 5, 2010 Town Council Meeting Minutes 3 11/16/2010 3 -1 -3 repairs, adding additional snow melt, redesign of some of the roofs, and the windows need to be replaced and sidewalks need to be repaired. Rogers asked what kind of precedent would this set. Timm said part of the reason the VCHOA is coming forward is because they are the only land lease project in Vail. The Vail Commons property cost was $3.1 million. The intent when the land was purchased was to recoup the value of the land. There has been a 42% increase in the value of the units since inception. Cleveland stated that the cost of the $38,000 wouldn't even begin to touch the cost of replacing the windows. He wanted to know if the VCHOA is asking for dispensation for one time or for each future year. Moore asks that the land leases be changed to be more in line with other projects in town. He said quality affordable housing is in the best interest in the town and he wants this asset to be in the best interest of everyone. Newbury asked if the HOA dues were affordable. Carol McKown, a Vail Commons homeowner, said the dues are currently $835 every 3 months ($278 /month) for two bedroom condominiums and $910 for 3 months ($303 /month) for three bedroom units. Michelle Reimer, Vail Commons homeowner, stated the dues include the land lease fees. Daly said when the project was approved the taxpayers believed they would recoup the $3.1 million of the project and interest costs. He also said a more important matter is using this funding mechanism. If an association is not looking for special assessments or additional funds to set aside for projects and replacement reserves, the town is not recovering costs. Daly said he cannot support this request. He said the VCHOA needs a replacement fund. This undermines the idea of affordable housing with land leases. Cleveland does not support this request either. Cleveland said everyone who owns property has fixed costs they have to deal with as a homeowner. Tjossem agrees with Cleveland and suggested the VCHOA come in and renegotiate the land lease. She said that forgiving the land lease to do maintenance projects should not be done. The request was denied and there was no motion to change the land lease or move this issue forward. The sixth item on the agenda was first reading of Ordinance No. 15, Series of 2010, an ordinance amending Chapter 12 -6, Residential Districts, Vail Town Code, to establish the Vail Village Townhouse (VVT) District, and setting forth details in regard thereto. Rachel Dimond, planner, gave a brief overview of the project. There are a number of properties in Vail that would benefit from this new zone district. Several legally October 5, 2010 Town Council Meeting Minutes 4 11/16/2010 3 -1 -4 nonconforming properties would conform to this new zone district, including Vail Trails East, Vail Trail Chalets, Vail Row Houses and the Texas Townhomes. The application went before the Planning and Environmental Commission (PEC) in August and was approved with modifications. The PEC recommends the Vail Town Council approve the first reading of Ordinance No. 15, Series of 2010, with the following modifications: - The gross residential floor area (GRFA) standards should allow a 1.35 GRFA ratio. PEC recommended 1.35 ratio, so they can utilize the full potential GRFA. - The parking standards should include the applicant's proposed language allowing parking in the front setback and street right -of -way. - The setback standards should be 20 feet as recommended in the staff memorandum. Dominic Mauriello, Mauriello Planning Group, representing the applicant, made a presentation to Council and reviewed the background and process of this request. The original application was denied. One of the homeowners at Vail Rowhouses, Mr. Bridgewater, refrained from being included in the Special Development District (SDD). He said there were holes in the SDD and the application was resubmitted for text amendments and the properties that would be included would be Vail Trails Chalets, Texas Townhomes, Vail Trails East, Vail Rowhouses, Numbers 1 -6 and Vail Rowhouses, Numbers 7 -13. Staff sent notices to all 80 property owners and have letters of support from the Vail Trails Chalets and the Texas Townhome property owners. Mauriello then reviewed their memorandum with the Council. Cleveland and Daly had concerns about the "step backs" allowing 48 feet high elevations from the street side of the property and said implementation could be an issue. Rogers said she supports the PEC recommendations. David Viele, a board member of the PEC, said the PEC came to their decision to include all property owners' rights in the process so no one had a "taking" of their rights at the 1.35 ratio and it was the lowest common denominator for equity for all homeowners, streamlined the process, saved staff time and promoted a client - friendly review process. He said saving floor area of 50 % was difficult and that this approval did not allow for step backs that were 48 foot high from the street level. Mauriello recommended the applicant come back with a model at the next meeting so Council could have a visual view of what they are talking about. Viele said it's more important to address removing the 50% floor area versus the 1.35 ratio. John Dunn, an attorney representing the Bridgwaters, who live in the Vail Rowhouses, stated the Bridgewaters have been part -time residents for many years. Their concern is October 5, 2010 Town Council Meeting Minutes 5 11/16/2010 3 -1 -5 about the Gross Residential Floor Area (GRFA) ratio as a matter of public policy. They believe the ratio will change the overall feel of Vail. George Ruther said part of the implementation will be to have a plat map amendment on the collective townhouse properties. This would allow a property owner to redevelop without the multiple variances that would currently be required. Scott Lindall, an architect representing Unit 13 of the Vail Rowhouses, stated they are in support of the Vail Village Townhome District ordinance and the 1.5 ratio and are in support of the amendments except for the side setbacks. He said the front and rear setbacks comply but the side setbacks are almost to the property line. The Vail Rowhouses Unit 3 is the only unit that has 20 feet of side setback. He recommends using three feet as the side setback because Unit 13 would be the only one that can comply. Daly made a motion to approve first reading of Ordinance No. 15, Series of 2010, with amendments; the ratio would be 1 to 1.25 of lot to developable GRFA; the eave height on the street side limited to 35 feet; no split zoning would be allowed; town staff needs to come back with language to provide for not vacating right -of -way and total rezoning of project; parking standards should be 20 feet and comply with the findings of PEC; Newbury seconded the motion. Tjossem said she would support a vote with the PEC recommendations so she would be voting against. Rogers said she would be voting for the PEC recommendations as well. Ruther clarified that the town would not be vacating any right of way. A vote was taken and passed 5 -2, with Tjossem and Rogers opposed. The seventh item on the agenda was Resolution 23, Series of 2010, a resolution amending Chapter VII, Vail Village Sub - Areas, East Gore Creek Sub -Area ( #6) to include recommendations related to a new Vail Village Townhouse (VVT) District, and setting forth details in regard thereto. Rachel Friede Dimond, staff planner, recommends the Council table Resolution 23, Series of 2010 until the second reading of Ordinance No. 15, Series of 2010, so the ordinance and resolution go into effect at same time. Foley made a motion to table Resolution 23, Series of 2010 to coincide with second reading of Ordinance No. 15, Series of 2010; the motion was seconded by Daly; a vote was taken and the motion passed unanimously, 7 -0. The Council moved to the eighth item on the agenda which was Resolution No. 24, Series of 2010, a Resolution Approving an Intergovernmental Agreement Between the October 5, 2010 Town Council Meeting Minutes 6 11/16/2010 3 -1 -6 Town of Vail and the Colorado Department of Transportation (CDOT)Regarding Highway Maintenance; and Setting Forth Details in Regard Thereto. CDOT is required to maintain state highways including highways extending through a city or an incorporated town. The Town of Vail and CDOT wish to enter into an Intergovernmental Agreement authorizing the town to maintain the highways within town limits, and for the State of Colorado to pay a fee of $120,998.00 for such services. Staff recommends approving the IGA and authorizing the Town Manager to sign and enter into the IGA with the CDOT in a form approved by the Town Attorney. Daly made a motion to approve Resolution No. 24, Series of 2010, the motion was seconded by Tjossem; a vote was taken and the motion passed unanimously, 7 -0. Council moved to the ninth item on the agenda was adjournment. Newbury made a motion to adjourn, seconded by Foley and passed unanimously. The meeting adjourned at 10:55 p.m. Dick Cleveland, Mayor Attest: Lorelei Donaldson, Town Clerk October 5, 2010 Town Council Meeting Minutes 7 11/16/2010 3 -I -7 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: A presentation on the fiscal and econimic impacts of the proposed Ever Vail project. PRESENTER(S): Andy Knudtsen, Economic Planning Systems, inc. ACTION REQUESTED OF COUNCIL: The Vail Town Council is asked to listen to the presentaion on the fiscal and economic impacts, ask questions, and provide feedback on the findings. BACKGROUND: In conjunction with the submittal of multiple applications for entitlement of the proposed Ever Vail project, the Vail Town Council contracted the services of Economic Planning Systems, Inc. to conduct both a fiscal and economic impacts study. ATTACHMENTS: EPS Memorandum Fiscal Impact Analysis Fiscal Model Sales Tax Model 11/16/2010 MEMORANDUM To: Town of Vail From: Andrew Knudtsen and Brian Duffany Economic & Planning Systems Subject: Ever Vail Fiscal & Economic Impacts Date: November 11, 2010 The ,f conornics of JAntd Use Purpose and Background Economic & Planning Systems (EPS) was hired by the Town of Vail to conduct a fiscal and economic impact analysis of the proposed Ever Vail (ell development. EPS' scope of work included two major tasks: • Fiscal Impact Analysis -- The fiscal impact analysis addresses the costs of providing Town services to the project compared to the revenues generated by the project. The fiscal analysis accounts for a range of funds including the General Fund, the Capital Fund, the RETT Fund, the Marketing Fund, and the URA Fund. • Economic Impact Analysis -- The economic impact analysis addresses the ways in which the project is expected to impact other sectors of the Vail economy and how these impacts can be mitigated. One of the key issues has been cannibalization (sales erosion). To address this issue, the Economic Impact Analysis quantifies retail sales flows by base area, Vail Village, Lionshead, and West Vail. The Economic Impact analysis also addresses other economic and policy issues (more qualitatively) such as the provision and filling of "hot beds," the capability to attract group sales and ability of the project to fill shoulder seasons, and the economic goal of attracting and retaining jobs in more diverse economic sectors. Economic & Planning Systems, Inc. 730 17th Street Suite 630 Denver, CO 80202 -3511 303 623 3557 tel 303 623 9049 fax Berkeley Sacramento Denver www.epsys.corn 11/16/2010 4 -1 -1 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 2 Development Program Residential The development program as proposed is summarized in Table 1. It includes a total of 530 residential units and hotel rooms. The hotel is currently proposed to be 102 rooms. A 76 unit "branded residence" condominium component would be associated with the hotel brand, management, and guest services. An additional 307 market rate condominiums are proposed, plus 26 deed restricted rental units and 19 deed restricted for -sale condominiums. The for -sale units would be deed restricted to Eagle County residents and full -time local employees. Compared to the earlier submittal, the residential program is largely the same; the major difference is that the hotel has been reduced to 102 rooms from 120 rooms. The retail program has also been scaled back significantly, as will be discussed below. The project was analyzed as a two phase project. The fiscal impact of each phase was modeled as if it were a single standalone project; the fiscal impacts of Phase I and Phase II are reported separately. The cumulative impact of full buildout of both phases was also analyzed. EPS has modeled the east phase as Phase I. Phase I includes the hotel and retail /commercial space. Phase II, the western phase, is almost entirely residential. Table 1 Ever Vail Proposed Development Program Ever Vail Fiscal Impact Analysis Description Phase I Phase II Total East West Development Program Hotel 102 0 102 Branded Residences 76 0 76 Condominiums 158 149 307 Deed Restricted Rental 8 18 26 Deed Restricted For -Sale 12 7 19 Total Units 356 174 530 GRFA 468,067 315,273 783,340 Source: Vail Resorts Development Company, Economic & Planning Systems K.20312 ESVail Fs lAn9y§i W\ els \121812- fi.d.Mel -11 -05 2710x1s11 -Dv P, o3 ram 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -2 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 3 Market values for the fiscal impact analysis were determined by EPS from research on several recently built and currently for -sale base area projects located throughout the Intermountain West. The market rate components are modeled at an average of $1,200 per square foot, or $1.8 million per unit, as shown in Table 2. The hotel market value is estimated to be $426,000 per room, based on 60 percent occupancy, a $350 per night average daily rate, 50 percent operating expenses, and a 9.0 percent capitalization rate. Vail Resorts Development Company (VRDC) staff has indicated that the deed - restricted for -sale units would be priced at approximately $400,000 per unit. Table 2 Ever Vail Estimated Market Values Ever Vail Fiscal Impact Analysis Description Phase I Phase II Avg. Sq. Ft. Hotel - -- - -- Branded Residences 1,500 1,500 Condominiums 1,500 1,500 Deed Restricted Rental 1,200 1,200 Deed Restricted For -Sale 1,250 1,250 Market Value /Sq. Ft. Hotel - -- - -- Branded Residences $1,200 $1,200 Condominiums $1,200 $1,200 Deed Restricted Rental - -- - -- Deed Restricted For -Sale $325 $325 Market Value /Unit Hotel $426,000 $426,000 Branded Residences $1,800,000 $1,800,000 Condominiums $1,800,000 $1,800,000 Deed Restricted Rental $102,000 $102,000 Deed Restricted For -Sale $406,250 $406,250 Source: Vail Resorts Development Company, Economic& Planning Systems H'. \20312 Ev V,i 20812 -f d,e 11 092010 x1sP M toss a pti - - -s 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -3 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 4 Retail and Commercial The project is also proposed to contain approximately 123,000 square feet of mixed use retail and commercial space. However, less than half of the space or approximately 53,000 square feet is programmed as retail and food and beverage space. There is an additional 69,500 square feet of conference, meeting, skier services, spa, and office space, as shown in Table 3. The program also proposes additional parking. A total of 1,464 parking spaces will be constructed, 1,025 in Phase I and 439 in Phase II. Approximately 400 of the total count will be public spaces and are anticipated to be used by day skiers during the ski season. The balance fulfills requirements related to retail and residential uses. Table 3 Ever Vail Retail and Commercial Development Program Ever Vail Fiscal Impact Analysis Description Phase I Phase II Total East West Retail and F &B Restaurant 16,090 0 16,090 Nightclub 6,013 0 6,013 Sporting /Apparel 11,118 0 11,118 Spa and Other Leaseable Retail 5,881 0 5,881 Grocer 14,156 0 14,156 Subtotal 53,258 0 53,258 Other Commercial Space Skier Services - Ticketing 2,489 0 2,489 Children's Skier Services 0 12,114 12,114 Spa 9,870 0 9,870 Office 35,395 0 35,395 Meeting Spaces (incl. hotel) 9,663 0 9,663 Subtotal 57,417 12,114 69,531 Totals 110, 6 75 12,114 122,789 Parking Public Spaces 200 200 400 General 825 239 1,064 Total Analyzed 1,025 439 1,464 Source: Vail Resorts& BBC Research, Economic& Planning Systems H: \263'12 Ever Vai Fscal A nalysisM we O \I27812iscI male FI I-0 U10x I sl4CommeraA Der Pro3 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -4 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 5 The applicant has reduced by approximately half the amount of retail proposed in this submittal. The applicant is currently proposing 53,000 square feet of restaurant, spa, and leasable retail space. Earlier versions of the development program contained approximately 100,000 square feet of retail and restaurant space. The current proposal has been downsized, as shown in Table 4. Previously, EPS expressed concerns that the earlier proposal had too much retail space for the location and the size of the bed base proposed. A number of potential impacts to the Town were identified such as vacant retail space and a lack of vitality and potential impacts to the existing retail areas of the Town. The reduction in retail space was an outcome of several discussions and working meetings between Vail Resorts Development Company (VRDC), EPS, BBC Research working as VRDC's consultant, and Town of Vail Staff. A key factor used in these discussions was the amount of retail floor area that could be supported by reasonable assumptions about the expenditure potential from Ever Vail guests and residents. (Based on the immediate adjacency, the "right sizing" also accounted for future expenditure from Ritz Carlton guests.) The retail is now appropriately sized, as the supply reflects appropriate assumptions about demand and results in sufficient ballast to provide a high quality guest experience expected by visitors at a ski area base portal. Table 4 Comparison of Ever Vail Retail Programs Ever Vail Fiscal Impact Analysis Retail Development Current Proposal Previous Proposal Restaurant 16,090 24,000 Nightclub 6,013 6,000 Sporting /Apparel 11,118 36,000 Spa and Other Leaseable Retail 5,881 21,000 Grocer 14,156 13,000 Total 53,258 100,000 Source: Vail Resorts, Economic & Planning Systems H 1212 Eva Vail`i lAnal ys Mo�ls,1208124 al mo�l-11- 05- 2010.dsJSheetl Key Assumptions EPS analyzed the project under "High" and "Low" scenarios to evaluate the project under different performance measures. The High Scenario reflects what EPS believes to be reasonable estimates of performance for a well located high quality base portal development with direct lift access. It was not designed to be an "optimistic" or "aggressive" scenario. It does, however, assume that VRDC will actively market the project, pursue off- season business (group business, meetings, conferences, etc.) to fill hotel rooms and rental condominiums, and motivate owners to participate in a rental program. The "Low" scenario was designed to reflect "average" or "business -as- usual" performance for Vail properties. Occupancy is a key economic and fiscal driver; the occupancy assumptions are shown below in Table 5. In the High Scenario, the hotel is assumed to operate at 60 percent annual occupancy and 50 percent occupancy in the Low Scenario. Condominiums are modeled at 40 percent occupancy in the High Scenario and at 30 percent in the Low Scenario. 1 1/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -5 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 6 Table 5 Occupancy Assumptions Ever Vail Fiscal Impact Analysis Description "High" Scenario "Low" Scenario % In Rental Pool Hotel 100% 100% Branded Residences 75% 65% Condominiums (Free Market) 50% 35% Deed Restricted Rental 0% 0% Deed Restricted For -Sale 0% 0% Annual Occupancy Hotel 60% 50% Branded Residences 45% 40% Condominiums in Rental Pool 40% 30% Second Home Condominiums 20% 20% % of Guests Net New Hotel 70% 60% Branded Residences 70% 60% Condominiums in Rental Pool 50% 40% Second Homes 100% 100% Source: Vail Resorts, Economic & Planning Systems H'.A20812E —V• Fs09 I Amalys3Wldd, 0812 -fsc rt,,d,l- 11- 052010.,§She21 The percent of guests that are "net new" to Vail are also estimated. The hotel is assumed to draw 60 to 70 percent net new guests, based on interviews with hospitality consultants and hotel managers. Net new guests are lower for the condominiums, estimated at 40 to 50 percent. All second homeowners are assumed to be new; however, second homes have a fraction of the economic impact of hotel rooms and therefore do not have a large effect in the fiscal impact model. Another key assumption is that costs related to infrastructure internal to the project will be borne by Vail Resorts, not the Town of Vail. It is anticipated that Vail Resorts will establish a number of Title 32 Metropolitan Districts (metro districts) for this purpose. At the time the service plan is submitted to the Town for its approval, it is recommended that a segregated revenue stream be established to cover operations and maintenance costs (as distinct from debt service for capital improvements) and that it be sized to ensure a level of service commensurate with Town of Vail standards. Additionally, it has been assumed that CDOT will continue to own and maintain the Frontage Road at CDOT's cost. Finally, it is important to note that the fees included in the model are the best approximation available at this time. Actual fees and requirements applied at time of project approval or at time of building permit may differ, based on a modified development program and /or modified Town standards. 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1-6 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 7 Summary of Findings Fiscal Impacts 1. At full buildout, the Ever Vail project is estimated to generate a positive fiscal impact to the Town. After accounting for high and low occupancy assumptions, the fiscal impact to the General Fund is estimated at $383,000 to $709,000 annually at full project buildout and stabilization. The higher range of estimated fiscal impacts reflects what EPS believes are reasonable assumptions for the performance of a high quality well performing base area resort project with direct lift access. It also presumes that VRDC will actively market the project to fill hotel beds, attract groups during the off - season, and encourage owners to participate in a rental program. The lower fiscal impact estimate represents more "average" performance for Vail properties, with no special marketing or management strategies designed to maximize "hot beds." The project's actual performance will likely lie somewhere between the low and high estimates. The results of the fiscal impact analysis are summarized in Tables 6 and 7 for the High and Low Scenarios, respectively. 2. The fiscal impacts of both phases of the project are positive. Phase I (east) generates a larger benefit to the Town than Phase II (west) due to higher guest expenditure levels generated by the 102 hotel rooms, 76 branded residences, and 158 condominium units. The hotel is a key economic driver estimated to generate about 25 percent of the visitors and spending from the project under the High Scenario. The branded residences are modeled as performing similarly to the hotel and account for approximately 17 percent of total visitors and expenditures. As noted previously, Phase II does not include hotel rooms or branded residences. It is also noteworthy that Phase II has nine fewer condominium units. Retail sales and sales tax are derived from visitor spending, and Phase I generates more spending that Phase II. The annual net fiscal impact of Phase I by itself is estimated at $342,000 to $563,000. Phase II by itself has a fiscal impact of $118,000 to $223,000 per year. 3. Ever Vail is estimated to require additional staff for Police and Fire under the High and Low Scenarios. Police and Fire service demands were estimated by a comparative analysis of call volumes in Lionshead Village by EPS and Town staff. At full buildout of both phases, Police is forecasted to need one additional code enforcement officer at an annual cost of $77,150 plus a one -time training cost of $65,000. By themselves, neither phase triggers the need for an additional police officer. Cumulatively, however, demand for services will require a new position. Based on the forecasted call volume, the Fire Department will need an additional staff person to serve Phase I at an annual cost of $76,600 plus a one -time training and equipment cost of $7,800. 4. The largest impacts on Town services are to the Town's transit system. LSC Transportation Consultants completed a study of the impacts of Ever Vail on the Town's transit system. LSC estimated the need for three new buses at a cost of $600,000 each. The annual operations cost is estimated at $111,000. EPS has allocated the impacts to Phase I, as it generates the most visitor activity. 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -7 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 8 5. The project is largely within the Lionshead URA. Therefore, the majority of the property tax generated by the project will flow to the URA rather than the General Fund until 2030. At full buildout, the General Fund portion of the property tax increment generated by the project is approximately $360,000 per year. After the URA expires in 2030, this revenue will revert back to the General Fund, increasing the net fiscal impact by the same amount. The total property tax increment at buildout is approximately $3.5 million per year, based on the structure of the URA which redirects non -Town revenue streams for the duration of the URA. These funds can be used by the URA to fund eligible projects. 6. The Ever Vail development will generate substantial one -time revenues from construction use tax and permit fees. The construction use tax from Phase I is estimated at $9.3 million over the course of its construction, contributing to the Town's Capital Fund. The construction of Phase II would produce approximately $5.1 million in use tax. The Real Estate Transfer Tax (RETT) from developer sales is forecasted to be $4.7 million for Phase I and $3.0 million for Phase II. The RETT fund is used for park, open space, and sustainability projects. Permit and plan check fees are estimated at $3.1 million for Phase I and $1.7 million for Phase II. Permit and plan check fees are one -time revenues that contribute to the cost of development revue. Since they are one -time revenues during construction, they are not counted in the annual fiscal impact to the General Fund which reflects the project at buildout and stabilization. 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -8 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 9 Table 6 High Scenario Fiscal Impacts Ever Vail Fiscal Impact Analysis By Phase - Standalone Cumulative Impact by Phase Fund Phase I Phase II Phase I Phases I & II General Fund Revenues $1,015,500 $430,100 $1,015,500 $1,445,500 Expenses [1] -$452,800 -$206,900 -$452,800 -$736,850 Net Fiscal Impact $562,700 $223,200 $562,700 $708,650 Capital Fund One -Time Use Tax $9,291,760 $5,103,520 - -- - -- Annual Sales Tax $599,800 $258,464 $599,800 $858,232 RETT One -Time Developer Sales $4,729,067 $3,025,273 Annual Resales $192,000 $122,000 $192,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $366,000 $168,000 $366,000 $534,000 Urban Renewal Authority General Fund Property Tax to URA [2] $258,000 $104,000 $258,000 $362,000 Other Taxing Entities Tax Increment $2,280,000 $919,000 $2,280,000 $3,199,000 Total Property Tax Increment $2,538,000 $1,023,000 $2,538,000 $3,561,000 [1] Expenses by phase do not add to the cumulative impacts of the entire project. Police is not estimated to need additional staff to serve individual phases, but would need an estimated 1 officer to serve the project if both phases are built. Fire is estimated to need an additional staff person to serve Phase I, which will also cover Phase ll. [2] The project is largely within the Lionshead URA. This revenue reverts to General Fund after URA expires in 2030. Source: Economic & Planning Systems H. \20812 Ever Vai l Fiscal Analysis \MO , \]2!)812- fiscalm dtl1- 11- 05- 2010.xls]ES -1 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -9 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 10 Table 7 Low Scenario Fiscal Impacts Ever Vail Fiscal Impact Analysis By Phase - Standalone Cumulative Impact by Phase Fund Phase I Phase II Phase I Phases I & II General Fund Revenues $777,800 $316,200 $777,800 $1,093,900 Expenses [1] -$435,600 -$198,000 -$435,600 -$710,750 Net Fiscal Impact $342,200 $118,200 $342,200 $383,150 Capital Fund One -Time Use Tax $9,157,200 $5,103,520 - -- - -- Annual Sales Tax $457,096 $188,264 $457,096 $645,344 RETT One -Time Developer Sales $4,729,067 $3,025,273 Annual Resales $192,000 $122,000 $192,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $294,000 $126,000 $294,000 $420,000 Urban Renewal Authority General Fund Property Tax to URA [2] $248,000 $104,000 $248,000 $352,000 Other Taxing Entities Tax Increment $2.193.000 $919,000 $2,193,000 $3,112,000 Total Property Tax Increment $2,441,000 $1,023,000 $2,441,000 $3,464,000 [1] Expenses by phase do not add to the cumulative impacts of the entire project. Police is not estimated to need additional staff to serve individual phases, but would need an estimated 1 officer to serve the project if both phases are built. Fire is estimated to need an additional staff person to serve Phase I, which will also cover Phase II. [2] The project is largely within the Lionshead URA. This revenue reverts to General Fund after URA expires in 2030. Source: Economic & Planning Systems H. \20812 Ever Vai l Fiscal Analysis \MOtlel, \11 -05- Low \]20812- fiscalm dtl 1-1 1-05-2010 1 ....I,]ES-1 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -10 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 11 Economic Impacts 1. The spending from new guests in Ever Vail is forecast to be $18.1 million per year with 90 percent of expenditures estimated to occur in the Town of Vail and 10 percent in the Vail Valley. The town derives most of its retail sales from visitor expenditures. Adding to the bed base will introduce new dollars into the Vail economy, contributing to additional retail sales. Ever Vail visitors are estimated to make 35 to 40 percent of their expenditures within Ever Vail, as shown in Figure 1. Approximately 50 to 55 percent of Ever Vail visitors' dollars are expected to occur within the Town of Vail in other retail locations such as Lionshead, Vail Village, and West Vail. The remaining 10 percent of expenditures are estimated to occur elsewhere in the Vail Valley, such as Beaver Creek, Avon, or Edwards. Similar to any guest in Vail, Ever Vail's guests will spend money in multiple locations in the Town. Figure 1 Ever Vail Guest Spending Patterns Ever Vail Fiscal Impact Analysis Total Spending $18.1 Million Ever Vail Vail Village, Lionshead, West Vail Down $6.8 Million $9.6 Million Valley $1.7M A 8 85295228 Q - 6% go t` A p a rr�� +� ry p �''y ra rears as xrcwu.rwn.x /�' A B 8 5 G 9 5 2 2 8 Q ra. r .rA ours. ". ur0 r.n ! F` 1 1/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -11 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 12 2. The project is not expected to cannibalize (erode) sales from Vail Village or Lionshead. The West Vail area is expected to see sales erosion of 1.1 percent. As new retail in Ever Vail is introduced, some sales from other Vail locations will now to Ever Vail. At the same time, Ever Vail guests will spend money in existing retail establishments in Vail. In most cases and in total, the net dollar flows to existing retail areas are positive. The economic analysis projects sales of $19.0 million in Ever Vail to achieve a minimum viability. Of this total, approximately 60 percent are expected from guest in the immediate village (Ever Vail plus the Ritz Carlton). The balance of 40 percent would need to come from guests staying elsewhere in Vail to support $19.0 million in sales in Ever Vail. Under these assumptions, Lionshead and Vail Village would "lose" $2.6 to $2.9 million in sales to Ever Vail; however, this is estimated to be replaced by $2.9 to $5.5 million in expenditures from new Ever Vail guests spending money in Lionshead and Vail. Thus, net sales flows are expected to be positive for Lionshead and Vail Village. Due to the competition created by the proposed market, a one percent loss in sales is projected for West Vail. The sales flows are quantified below in Table 8 and Figure 2. Vail Village currently achieves $152.7 million in sales, while Lionshead achieves $32.8 million, and West Vail has $71.8 million in sales. The net dollar flows shown are less than two percent of existing sales and are only projected to be negative for West Vail. EPS believes that the strength of Lionshead and Vail Village will be the main draw for all Vail guests regardless of where their lodging is. Our opinion is that the removed location of Ever Vail is unlikely to draw significant amounts of sales away from existing retail areas. Table 8 Summary of Town Sales Flows with Ever Vail Ever Vail Fiscal Impact Analysis Erosion to Ever Spending From Potential Dollar Flows Vail Ever Vail Net Dollar Flows Lionshead $2,632,000 $2,954,000 $322,000 Vail Village $2,994,000 $5,486,000 $2,492,000 West Vail $1,938,000 $1,166,000 772000 Total $7,564,000 $9,606,000 $2,042,000 Existing Sales Erosion as % of Potential Erosion vs. Existing Sales Net Dollar Flows (2009) Sales Lionshead $322,000 $32,789,000 1.0% Vail Village $2,492,000 $152,700,000 1.6% West Vail 772000 $71,807,000 -1.1% Total $2,042,000 $257,296,000 0.8% Source: Economic & Planning Systems H'. 1,208 12 E, Vaal F'—A,Aysi, `. MaJd,s� 27012 -EV Saes Tax Md,e 11- 052010.,SJT,U,, ES 1 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -12 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 13 Figure 2 Net Dollar Flows vs. Existing Retail Sales Ever Vail Fiscal Impact Analysis Chart 2 $180,000,000 ■ Net Dollar Flows Existing Sales (2009) $160,000,000 $140,000,000 w $120,000,000 d m U) $100,000,000 d m 'a $80,000,000 0 0 LL $60,000,000 d $40,000,000 $20,000,000 $322,000 $2,492,000 $0 W Lionshead Vail Village West Vail - $20,000,000 $772,000 11 i 16/2010 20812-Fiscal a economic Memo 11-11 -10.de 4-1 -13 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 14 3. The amount of retail and restaurant space proposed in Ever Vail is small in comparison to the Town's retail inventory and is therefore forecast to have a relatively small impact on existing retailers. EPS has focused on "right sizing" the amount of retail space in the project. The effort has resulted in downsizing the retail from 100,000 to 120,000 square feet in earlier development plans to approximately 53,000 square feet as currently proposed. This has been based on an expenditure analysis, qualitative analyses and comparisons of other base areas, and from a determination of the minimum numbers and types of services needed for a successful base area portal. The tenant mix is expected to cater largely to hotel and condominium guests rather than to create a new shopping destination in Vail. The amount of retail proposed would result in an 8 percent increase in the amount of retail space in Vail, as shown in Table 9. Table 9 Vail Retail Inventory Ever Vail Fiscal Impact Analysis Vail Village Lionshead West Vail Vail Ever Store Category # Retailers Sq. Ft. # Retailers Sq. Ft. # Retailers Sq. Ft. Total Vail Food & Beverage 54 205,000 21 58,500 11 27,000 290,500 22,103 Gallery /Art/Books 14 21,000 0 0 0 0 21,000 TBD Clothing /Fur 32 48,000 8 13,000 0 0 61,000 5,559 Jewelry 12 8,500 2 3,200 0 0 11700 TBD Ski Equipment 14 36,000 16 28,000 2 16,000 80,000 5,559 Grocery /Liquor 2 1,400 1 1,000 4 108,000 110,400 14,156 Gift Shop 6 6,000 3 2,400 0 0 8,400 TBD Eyewear 2 1,100 1 350 0 0 1,450 TBD Miscellaneous 14 10,000 6 10,000 11 25,000 45,000 5 Total 150 337,000 58 116,450 28 176,000 629,450 53,258 Source : Town of Vail; Economic & Planning Systems H: \2-217 - Vail R-1 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -14 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 15 4. To maximize economic benefit from the Ever Vail development, the Town and Vail Resorts Development Company should ensure the following aspects of the project are adequately addressed. • Phasing - Given that the expenditure potential from Phase I is 4.5 times higher than that of Phase II ($11.2 million vs. $2.5 million), constructing Phase I first will generate greater economic benefit to the Vail community and greater fiscal benefit to the Town. • Hot Beds and Critical Mass - Comparing one hotel room to one condominium unit, the hotel room generates 2.3 times the expenditure potential of a condominium unit and 1.3 times the net fiscal benefit ($3,150 vs. $2,440). Thus, hot beds result in significantly greater economic and fiscal benefit. A related issue is the ability for the hotel to control and market a critical mass of accommodation units, sufficient to capture group meeting business. A reasonable target, based on representatives that have marketed Vail facilities for group business, is 200 to 225 rooms. Vail Resorts should be encouraged to create lock off units and incentive programs with sufficient benefits to increase participation and achieve the critical mass needed to effectively market its group sales. In addition to boosting occupancy rates during summer and winter seasons, group sales are one of the most effective tools to increase rates during shoulder seasons. • Office Uses - When the office is evaluated in terms of economic benefit, it will provide space for direct, indirect, and induced employment. All are beneficial to the Town. The 35,000 square feet of office proposed are an important economic development tool for the Town to consider, as a modest way to diversify its economy. 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -15 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 16 Methodology This section provides an overview of the methodology used to perform the detailed calculations in the Fiscal Impact Model. Fiscal impact analysis (FIA) is a municipal financial planning and community development tool used to evaluate the impacts of land use decisions. It provides order -of- magnitude estimates of the impacts to a Town's ongoing revenues, operations and maintenance costs, and capital expenditures. The FIA can, however, identify specific project impacts to be addressed and mitigated such as extraordinary O &M costs, or one -time capital costs triggered by the project. This analysis focuses on the Town's General Fund revenues and expenditures to estimate the net fiscal impact of the project. The General Fund is the major operating fund for the Town. The analysis also estimates the building and construction related revenues, the Real Estate Transfer Tax (RETT), construction use tax, lodging tax, the recreation impact fee, and property tax increment to the URA. The Town has many other smaller revenue sources. Most of these were not analyzed because they are not directly impacted by growth and development. In other words, they are determined by contractual agreements or formulas which are not linked to new growth and development. Tax Revenues The tax revenues described below are ongoing annual revenues that will occur after the project is constructed and occupied, and will continue for the life of the project. Revenues are based on the assumption that 90 percent of visitors to Ever Vail are net new. The major ongoing tax revenues analyzed are described below: • Sales and Lodging Tax - The Town allocates about 60 percent of sales tax to the General Fund and 40 percent to the Capital Fund. Within the General Fund, sales tax accounts for 37 percent of all General Fund revenues. A 4.0 percent sales tax is applied to retail sales and overnight lodging sales. A distinct 1.4 percent tax is applied to lodging and is dedicated to the Vail Marketing District. There is a minor amount of existing retail space on the site and the analysis nets out the existing sales on site to provide the Town with an understanding of net new revenues. • Property Tax - Property tax is normally a General Fund revenue. However, the Ever Vail project lies primarily within the Lionshead Tax Increment Financing (TIF) District. Thus the incremental property tax generated by the new construction flows to the Town's urban renewal authority, not the General Fund. The amount of property tax collected is based on mill levies imposed by all taxing entities in the area other than metropolitan districts which may be specifically excluded under agreement with the Town of Vail. The TIF district's 25- year life expires in 2030, at which time the Town's portion of property tax will be redirected to the General Fund. Urban renewal authority revenue may be used to fund capital projects supporting the elimination of blight within the district. URA funds cannot be used for operating expenditures. • Ski Lift Tax - This is a 4.0 percent sales tax on lift ticket sales. Lift tax revenue contributes to operating the Town's free bus service. • Real Estate Transfer Tax (RETT) -This is a 1.0 percent transaction tax on the sale of real property in the Town of Vail. RETT revenues are restricted to the RETT Fund, which is used for parks, recreation, open space, and environmental sustainability. 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -16 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 17 Construction Related Revenues Ever Vail will generate several revenue streams during the course of project construction. Some are on -going and some are one -time. The object of the fiscal impact analysis is to ensure that the ongoing revenues will cover the incremental increase in the cost of services, as the project should document net fiscal neutrality (or positive impact) for costs and revenues that run in perpetuity. In addition to on -going revenues, a list of the one -time revenues is provided below: • Construction Use Tax — The Town's 4.0 percent construction use tax is applied to the cost of materials. The construction use tax is dedicated to the Capital Fund. • Building Permit and Plan Review Fees — The Town charges a building permit fee based on the construction valuation and a plan review fee that is 65 percent of the building permit fee. Permit fees go to the General Fund. • Recreation Impact Fee — The Town charges a $1.00 per square foot recreation impact fee which is allocated to the RETT fund for parks, recreation, open space, and environmental sustainability. • Traffic Impact Fee — The Town has traditionally collected a traffic impact fee that is $6,500 per peak hour trip, based on a study provided to the Town by Kimley Horn, a traffic engineering firm. Cost and Revenue Methodology The fiscal impact model uses the Town of Vail Budgets and audited annual financial statements from 2006 through 2008 as the basis for estimating revenue and cost factors, which are applied to estimate project specific impacts. The analysis compares annual ongoing revenues to ongoing annual expenditures (O &M). One time capital costs are addressed separately. Two methods are used to estimate costs and revenues: case studies and average cost or revenue multipliers as described below. Case Studies This refers to a specific calculation of the marginal costs or revenues derived from the Project based on available data. Case studies were developed for revenue sources when refined calculation methods were available. For example, property taxes are calculated from expected market values multiplied by the assessment ratio and then multiplied by the applicable mill rates. Sales tax revenues are calculated from estimated visitor expenditures. Police and fire impacts (calls for service) were estimated by constructing a per -unit comparison of call volume in Lionshead Village. Average Cost or Revenue Multipliers These are cost or revenue measures that are ratios of budget line items to known quantities such as population, housing units, or peak persons served. The variable "peak persons served" is defined as population plus visitors plus one -half of non - resident employees. Half of non - resident employees reflect the impacts of employees who are only present for a portion of a day. This estimating technique is used when more detailed data is not available. Revenues or expenditures can be expressed in terms of a cost /revenue per capita, or per housing unit, or per peak person served, etc. 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -17 Memorandum November 11, 2010 Ever Vail Fiscal Impact Analysis Page 18 Some costs and revenues do not increase at the same rate as the Town's growth (i.e., the per capita or person served, etc., factors). For example, general Town administration and government is a relatively fixed cost that does not increase by a one -to -one ratio with new development. The costs to provide other services such as police and fire are more directly tied to the increase in population and persons served generated by new development. To account for cost variability, a percentage adjustment is applied to gross average cost multipliers to reduce them to a net multiplier. 11/16/2010 20812 - Fiscal & Economic Memo 11- 11- 10.doc 4 -1 -18 DRAFT Fiscal Impact Analysis EverVail Fiscal Impact Analysis High Scenario Prepared by Economic & Planning Systems 1 of48 November 11, 2010 11/16/2010 4 -2 -1 DRAFT Table A Table of Contents Ever Vail Fiscal Motlel Sec[ioNfable Description Table ES -1 Executive Summary Project Assumptions Tables Devel opment Program Table 2 Market Value Assumptions Table antl Abb.— tlation ,Assumptions- Occupancies Tablet Commercial Development Program Table5 Visitor Days Generatetl by F —Vail Tablefi Pect Peak Population(Population plus V on- sitor, plus 1/2 of NReeitlent Employees) Table] Pro Commuting Employees Tablefi Derivation of Monty Occupancy Estimates Town DemograPblcs Table 9 Town of Vail Peak Demographics (Population plus Visitors plus 1/2 of NonRb,,dbm Employees) Table l9 Vail Population, HOUSeholtls, antl ESlimaletl Secontl Homes for Peak Persons Servetl Calculation Table 11 General Funtl antl Revenue Estimating Methotl, Table 12 General Funtl Revenue Multipliers Table 13 General Funtl Expenses antl Estimating Methotl, Table 14 General Funtl Cost Multipliers Table 15 Town of Vail Sales Tax Structure Revenue Analysis Table 1F Market Value antl Property Tax Summary Table 1] Affortlable Rental Unit Pricing Table 13 Hotel Valuati on Table 19 Commercial Market Value Table 29 Ltlging Sales Tax Estimate Table 21 1.9 % Real Estate Transfer Tax Revenue Table 22 LA Tax Revenue Cost Analysis Table23 Annual Public RigM-of -Way Maintenance Costs Table 24 Lion,heatl Single Family Equivalents for Estimating Public Safety Call Volume Table 25 Project SFES antl Calls for Service Table 2F E,timatetl Cost of Police Service Tablet E,timated Cost of Fire Service Table 28 Transit Impacts One Time Fees antl Revenues Table 29 Construction Value Estimate Table 39 Builtling Permit antl Plan Review Fees, antl Construction Use Tax Estimate Table 31 Recreation Impact Fee Table 32 Traffic Mitigation Fee at Project BUiltlout Results Tables Table 33 Estimatetl Annual General Funtl Revenues Table 34 E,timatetl Annual General Funtl Expenses Table 35 Annual Net Fiscal Impact to General Funtl Table 36 General Funtl One -Time Revenues antl Costs Table 3, Capital Funtl Impact Table 39 Other Funtl, Impacts A y onomrc&Wan a y me ) ) /2010 zoraa Novemher ti, zoto 4 -2 -2 DRAFT Table ES -1 Summary of Annual Fiscal Impacts By Phase - Standalone Cumulative Impact by Phase Fund Phase Phase ll Phase Phases l &11 General Fund Revenues $971,500 $412,100 $971,500 $1,383,500 Expenses [1] -$452,800 - 206 900 -$452,800 - 736 850 Net Fiscal Impact $518,700 $205,200 $518,700 $646,650 Capital Fund One -Time Use Tax $9,291,760 $5,103,520 - -- -- Annual Sales Tax $599,800 $258,464 $599,800 $858,232 RETT One -Time Developer Sales $4,729,067 $3,025,273 Annual Resales $192,000 $122,000 $192,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $366,000 $168,000 $366,000 $534,000 Urban Renewal Authority General Fund Property Tax to URA [2] $258,000 $104,000 $258,000 $362,000 Other Taxing Entitles Tax Increment $2.280.000 $919,000 $2.280.000 $3.199.000 Total Property Tax Increment $2,538,000 $1,023,000 $2,538,000 $3,561,000 [1] Expenses by phase do not add 1. the cumulative impacts of the entire pmj.d Police is not estimated to need addif rai staff 1. serve individual phases, but would need an estimated 1 officer(. serve the project if both phases are built, Fire is e,ti—fi,d 1, need an additbrai staff person 1. serve Phase I, which will also cover Phase I I. [2] The project is largelywilhin the Li.nshead URA. This revenue reverts 1. General Fund after URA expires in 2030. Source. Economic & Planning Systems Prepared by Economic & Planning Systems 3 of 48 November 11, 2010 11/16/2010 4 -2 -3 DRAFT 1. Project Assumptions Prepared by Economic & Planning Systems 4 of 48 November 11, 2010 wisl2010 4 -2 -4 DRAFT Table 1 Development Program Description Phase I Phase II Total East West Development Program Hotel 102 0 102 Branded Residences 76 0 76 Condominiums 158 149 307 Deed Restricted Rental 8 18 26 Deed Restricted For -Sale 12 7 19 Total Units 356 174 530 GRFA 468,067 315.273 783,340 Source: Vail Resorts Development Company, Economic & Planning Systems I¢ ­12--1 nn 1a 1[21oians 1modern- n-m11.1ul aI— Prepared by Economic & Planning Systems 5 of 48 November 11, 2010 11/16/2010 4 -2 -5 DRAFT Table 2 Residential and Accommodations Assumptions - Occupancies Description Phase I Phase II % In Rental Pool Hotel 100% 100% Branded Residences 75% 75% Condominiums (Free Market) 50% 50% Deed Restricted Rental 0% 0% Deed Restricted For -Sale 0% 0% Annual Occupancy Hotel 60% 60% Branded Residences 45% 45% Condominiums in Rental Pool 40% 40% Second Home Condominiums 20% 20% % of Guests Net New Hotel 70% 70% Branded. Residences 70% 70% Condominiums in Rental Pool 50% 50% Second Home Condominiums 100% 100% Second Home Branded Residences 100% 100% Source: Vail Resorts, Economic & Planning Systems H-121— a1 F-1 v —1a 1[zloia1- 1m1awi- n -mm.s] —Ir ,a Prepared by Economic & Planning Systems 6 of 48 November 11, 2010 11/16/2010 4 -2 -6 DRAFT Table 3 Market Value Assumptions Description Phase I Phase II Avg. Sq. Ft. Hotel - -- -- Branded Residences 1,500 1,500 Condominiums 1,500 1,500 Deed Restricted Rental 1,200 1,200 Deed Restricted For -Sale 1,250 1,250 Market Value /Sq. Ft. Hotel -- — Branded Residences $1,200 $1,200 Condominiums $1,200 $1,200 Deed Restricted Rental - -- — Deed Restricted For -Sale $325 $325 Market Value /Unit Hotel $426,000 $426,000 Branded. Residences $1,800,000 $1,800,000 Condominiums $1,800,000 $1,800,000 Deed Restricted Rental $102,000 $102,000 Deed Restricted For -Sale $406,250 $406,250 Source: Vail Resorts Development Company, Economic & Planning Systems H¢ 1 au Fi-I v eislm cans 1 ml.111 n -ma wsla -rviaas p s Prepared by Economic & Planning Systems 7 of 48 November 11, 2010 I1 /16 /2010 4 -2 -7 DRAFT Table 4 Commercial Development Program Description Phase I Phase II Total East West Retail and F &B Restaurant 16,090 0 16,090 Nightclub 6,013 0 6,013 Sporting /Apparel 11,118 0 11,118 Spa and Other Leaseable Retail 5,881 0 5,881 Grocer 14156 0 14156 Subtotal 53,258 0 53,258 Other Commercial Space Skier Services - Ticketing 2,489 0 2,489 Children's Skier Services 0 12,114 12,114 Spa 9,870 0 9,870 Office 35,395 0 35,395 Meeting Spaces (incl. hotel) 9 663 0 9 663 Subtotal 57,417 12,114 69,531 Totals 110,675 12,114 122,789 Parking Public Spaces 200 200 400 General 825 239 1664 Total Analyzed 1,025 439 1,464 Source: Vail Resorts & BBC Research, Economic & Planning Systems 1 ­12—r au1­1 v n 1a 1 [21121- 1.1awi 1 o�v� Prepared by Economic & Planning Systems 8 of 48 November 11, 2010 I1/In/2010 4 -2 -8 DRAFT Table 5 Visitor Days Generated by Ever Vail Phasel Phasell Units in Units in Annual Persons Rental % Net Rental % Net Total Visitor Description Occupancy per Unit Program New Visitor Days Program New Visitor Days Days 355 Days 355 Days By Phase Hotel 60% 2.0 102 70% 31,270 0 70% 0 31,270 Branded. Residences in Rental Pool 45% 3.0 57 70% 19,660 0 70% 0 19,660 Condos in Rental Pool 40% 3.5 79 50% 20,180 75 50% 19,030 39,210 Second Home Units (not rented) 20% 2.5 82 100% 15 000 60 100% 10 880 25 880 Totals 320 86,110 134 29,910 116,020 Cumulative by Phase Hotel 102 31,270 102 31,270 31,270 Branded Residences in Rental Pool 57 19,660 57 19,660 19,660 Condos in Rental Pool 79 20,180 154 39,210 39,210 Second Home Units (not rented) 82 15 000 142 25 880 25880 Totals 320 86,110 454 116,020 116,020 Source: Economic & Planning Systems H- 12E- -lr5.i 1- 1mI.111- n- mmwslsP lea visimrozvs Prepared by Economic & Planning Systems 9 of 48 November 11, 2010 11/16 /2010 4 -2 -9 DRAFT Table 6 Project Peak Population (Population plus Visitors plus 112 of Non - Resident Employees) Peak Occupancy Net New Visitors Persons per Unit Units Peak Population Total/ Description Phase I Phase II Phase I Phase II Phase I Phase II Phase I Phase II Phase I Phase II Buildout Overnight Visitors Hotel 90% 90% 70% 70% 2.00 2.00 102 0 129 0 129 Branded Residences 90% 90% 70% 70% 3.00 100 57 0 108 0 108 Condominiums 90% 90% 50% 50% 3.50 150 79 75 124 117 242 Subtotal 361 117 478 Cumulative 361 478 Permanent Residents Condominiums 100% 100% 100% 100% 2.09 2.09 16 15 33 31 64 Deed Restricted Rental 100% 100% 100% 100% 2.09 2.09 8 18 17 38 54 Deed Restricted For -Sale 100% 100% 100% 100% 2.09 2.09 12 7 25 15 40 Subtotal 75 83 158 Cumulative 75 158 Public Parking Spaces 100% 10046 25% 25% 2.60 2.60 200 200 130 130 260 Cumulative 130 260 Plus 112 of Non - Resident Employees 111 7 Cumulative 111 118 118 Total Peak Population 677 338 Cumulative 677 1,015 1,015 Source. Economic & Punning systems 1­12E-r-IF—I 1�112o121— 1m 111111i,obt6PiaaP�Keaaa Prepared by Economic & Planning Systems ^ 0 of 4A November 11, 2010 DRAFT Table 7 Project Commuting Employees Square Feet Jobs Generated Employees/ Description 1,000 Sq. Ft. Phase I Phase II Phase I Phase II Totals Retail and F &B Restaurant 6.00 16,090 0 97 0 Nightclub 6.00 6,013 0 36 0 Sporting /Apparel 3.00 11,118 0 33 0 Spa and Other Leaseable Retail 3.00 5,881 0 18 0 Grocer 3.00 14156 0 42 0 Subtotal 53,258 0 226 0 Cumulative 53,258 53,258 226 226 226 Other Commercial Space Skier Services - Ticketing 3.5 2,489 0 9 0 Children's Skier Services 2.0 0 12,114 0 24 Spa 3.0 9,870 0 30 0 Office 3.0 35,395 0 106 0 Meeting Spaces (incl. hotel) - -- 9 663 0 - -- -- Subtotal 57,417 12,114 145 24 Cumulative 57,417 69,531 145 169 169 Totals 110,675 12,114 371 24 Cumulative 110,675 122,789 371 395 395 Commuters Commuting 60% 60% Commuter Employees 222 15 Commuter employee impact % 50% 50 Non - resident employee impact 111 7 Cumulative 111 118 118 Note: Does not include maintenance faality employees which are existing, not net new. Source: Vail Resorts & BBC Research, Economic 8 Planning Systems Prepared by Economic & Planning Systems 11 of 48 November 11, 2010 I1 /lb /2010 4 -2 -11 DRAFT Table 8 Derivation of Montly Occupancy Estimates Branded Condo - Month Days Hotel Residences miniums Annual Occupancy 60% 45% 40% January 31 90% 68% 60% February 28 90% 68% 60% March 31 90% 68% 60% April 30 53% 40% 36% May 31 35% 26% 23% June 30 65% 49% 43% July 31 65% 49% 43% August 31 65% 49% 43% September 30 47% 35% 31% October 31 33% 25% 22% November 30 33% 25% 22% December 31 53% 40% 36% Annual Average 365 60% 45% 40% Source: MTRiP, Property Manager Interviews, Economic & Planning Systems H­12F- -1 Frs y n 1e 1lmoiz -1s 1mI.111- >> -mio ws]dMOninry ocry oerNauon Prepared by Economic & Planning Systems 12 of 48 November 11, 2010 11/16/2010 4 -2 -12 DRAFT 2. Town Demographics Prepared by Economic & Planning Systems 13 of 48 November 11, 2010 11/16/2010 4 -2 -13 DRAFT Table 9 Town of Vail Peak Demographics (Population plus Visitors plus 112 of Non - Resitlent Employees] Fact Calculation Jobs Private Employment [1] Town Employment 290 Total Jobs 8,190 Retlud —. Multiple -Job Holtlings 1 607 Total Employees too 6,293 Distribution of Workers [1] Resitlent Employees 1,570 Non - Resitlent Employees(Commutem) 4,720 Lotlging [2] Lotlging Inventory (MTR,P) 3,706 Persons per Unit 3.5 Peak Occupancy 95 Peak Overnight Visitors 12,300 Secontl Homes Secontl Home Units ]3] 2,400 Persons per Unit 2.50 Peak Occupancy 90 %% Peak Overnight Visitors 5,400 Parking Vail Village Structure Spaces 1,150 Lionsheatl St,—, Spaces 1,250 Persons per Car 2.6 Peak Occupancy 98 Peak Day Visitors antl Non -Vail LotlgeC Guests 6;100 Peak Persons Servetl Resid- zo 4,960 Secena Hemeewne�a 5,400 o�em�ght vieim�a 12,300 Non - Resitlent Employees]4] 50 2,360 Parking fi600 Total Peak Persons Servetl 31,120 M1I ue cea.�.. u�l Emplonrem q,remle Pl niiala Isl E. im remre� a i..ic cci. i..Ne i..i..e cn e m � hr1 eaeirebletn I4lmmmue.empMee.rerere..cmmmn�re .,om�m cure �m arre mnrecem re.�mct Prep -by Economic & Planning Systems 14 0(48 November 11, 2010 [1/[6)2010 4 -2 -14 DRAFT Table 10 Vail Population, Households, and Estimated Second Homes for Peak Persons Served Calculation Description Calculation Household Population 4,960 Group Quarters 13 Total Population 4,973 Occupied Housing Units (Households) 2,369 Vacant and /or Seasonal Housing Units n 4 572 Total Housing Units 6,941 Rental Pool Lodging Hotel Rooms 1,534 Condos, Townhomes, & Homes a 2 172 Total 3,706 Second Homes n -a 2,400 Source: MTRiP: CO State Demographer: Economic & Planning Systems H-121 --11 -1 v new 1e 1[mo +2-1 -1 mI.111 unno�paq Prepared by Economic & Planning Systems 15 of 48 November 11, 2010 11/16/2010 4 -2 -15 DRAFT 3. Budget Analysis Prepared by Economic & Planning Systems 16 of 48 November 11, 2010 11/16/2010 4 -2 -16 DRAFT Table 11 General Funtl antl Revenue Estimating Methotls Gross 2006 -2008 One Time or Revenue Revenue 2006 2007 2008 2009 Avg. Estimating Method Ongoing Revenue Factor ended Bud et (200-008 A�l Local Ta Sales Tax Split b/t Gen 'I Funtl & Gapilal.FUntl (%) 56/44 59141 59/41 Sales Tax(Incl. L.dgmg Sales Tax) $9,345,660 $10,741,500 $11,640,000 $9,760,000 $10,575,720 Case Slutly Ongoing - Pmperty- d0- ership 2,931,347 3,012,030 4,309,622 4,293,500 3,417,666 Case Slutly Ongoing - Ski Lift Tax 2,975,097 3,039,619 3,277,703 3,115,000 3,097,473 Case SWtly Ongoing - FranchiseFees , Penalties, and Other Taxes 884328 877634 1075209 1049935 945724 C -t-Wal Revenue -N.t Analyzetl -- -- Tolal- L- i Taxes 16,136,432 17,670,783 20,302,534 18,218,435 18,036,583 Licenses & Permits Construction Fees 3,481,989 4,992,752 3,799,444 -- 4,091,395 Case SWtly One -Time -- Conlmctors'Licenses 30,993 34,398 42,061 -- 35,817 Not Analyzed -- - - OlherPermit.mdLicenses 48.774 55867 61521 -- 55387 Not Analyzetl - -- Total- Licenses antl Peomils 3,561,756 5,083,017 3,903,026 1,335,200 1,335,200 Inleroovernmenlal Revenue County Sales Taz 570,445 603,364 625,674 -- 599,828 Case Slutly Ongoing. -- CounlyROatl antl Bridge 488,095 497,974 733,673 -- 573,247 Case Slutly Ongoing -- Molor Vehicle Registration Fees 25,673 25,578 25,109 -- 25,453 Not Analyzetl -- -- CigamlleTax 80,738 81,781 80,913 - 81,144 Per Peak Pelson Servetl Ongoing $81,100 Highway USers Tax 202,188 191,042 179,605 - 190,945 Not Analyzetl - - State Healthlnspection 11,748 18,822 11,768 - 14,113 NolAnalyzed - - OlherC.- ty Revenues 0 0 0 -- 0 Nol Analyzetl -- -- OlherStaleS.,ces 400 30,936 49,455 -- 26,930 Not Analyzetl -- -- FetleralS -ces 97883 59542 0 -- 52508 Not Analyzetl -- -- Total- Inteig overnmental 1,477,270 1,509,039 1,706,197 1,581,680 1,581,680 Chames for Services Management Fees(LOcal Marketing District) 22,172 66,750 93,000 - 60,641 Not Analyzetl - - InlernalSmiceChafge 356,841 318,297 550,409 - 408,516 Not Analyzetl - - OulofDislriclFire Response 40,535 57,393 97,526 -- 65,151 Nol Analyzetl -- -- Alarm Monitoring Fees 49,188 36,953 37,853 -- 41,331 Nol Analyzetl -- -- Parking Slruclures 3,451,912 3,592,596 3,905,299 5,459,744 3,649,936 Not Analyzetl- Developer Revenue -- -- Parking Passes, Misc. Parking Revenue 555,422 921,796 800,686 -- 759,301 NotAmlmd -- - - Finesantl FOrteilures 286,197 347,090 396,707 260,000 343,331 Per Peak Person Servetl Ongoing $343,300 Rents 827,280 897,958 949,961 906,382 891,733 Not Analyzetl -- -- Other Charges, Services, -d Sales 291427 354755 332467 686488 327483 Per Peak Person Servetl Ongoing $327,100 Total - Chafgesfor Services 5,880,574 6,596,588 7,163,908 7,312,914 6,547,023 Other Rev Interest on 820,136 984,040 571,072 115,000 791,749 Nol An alyzed - - Other 501,699 91 5,016 61 3,025 8 0,500 286780 Not Analyzetl - - Total,OtherRevenues 1,321,835 1,179,056 734,097 295,500 1,078,329 Total Revenue $28,377,867 $32,03BA83 $33,809,762 $28,743,729 $28,578,816 vIll ec�amerevenues ere namec en ..ease m. east rn)da nat ry eely with new develapmeM ar b)nr m,nor revenue sauces theb.11 g c Ily act th. fists p d Ih. p / Prepared by Economic & Planning Systems 17 0 48 November 11, 2818 11/14)2010 4 -2 -17 DRAFT Table 12 General Fund Revenue Multipliers 2006 -2008 Revenue Factors Avg. Denom- Gross % Net Revenue Estimating Method Revenue inator Multiplier Variable Multipler Local Taxes: Sales Tax (Intl. Lodging Sales Tax) Case Study - -- - -- -- - -- -- Property and Ownership Case Study -- -- - -- -- - -- Ski Lift Tax Case Study -- -- - -- -- - -- Franchise Fees, Penalties, and Other Taxes Contractual Revenue - Not Analyzed - -- - -- -- - -- - -- Licenses & Permits Construction Fees Case Study -- -- - -- -- - -- Contractors'Licenses Not Analyzed - -- - -- - -- - -- -- Other Permits and Licenses Not Analyzed - -- - -- - -- - -- -- Intergovernmental Revenue County Sales Tax Case Study -- -- - -- — - -- County Road and Bridge Case Study -- -- - -- -- - -- Motor Vehicle Registration Fees Not Analyzed - -- - -- -- - -- -- Cigarette Tax Per Peak Person Served $81,100 31,120 $2.81 100% $2.61 Highway Users Tax Not Analyzed - -- - -- -- - -- -- State Health Inspection Not Analyzed - -- - -- -- -- -- Other County Revenues Not Analyzed - -- - -- -- — — Othdr State Sources Not Analyzed - -- - -- -- -- -- Federal Sources Not Analyzed - -- - -- -- — -- Charges for Services Management Fees (Local Marketing District) Not Analyzed - -- - -- -- — — Internal Service Charge Not Analyzed - -- - -- -- -- -- Out of District Fire Response Not Analyzed - -- - -- -- — -- Alarm Monitoring Fees Not Analyzed - -- - -- -- -- -- Parking Structures Not Analyzed - Developer Revenue - -- - -- -- - -- - -- Parking Passes, Misc. Parking Revenue Not Analzed - -- - -- -- - -- -- Fines and Forfeitures Per Peak Person Served $343,300 31,120 $11.03 100% $11.03 Rents Not Analyzed - -- - -- -- - -- -- Other Charges, Services, and Sales Per Peak Person Served $327,100 31,120 $10.51 100% $10.51 Other Revenues Interest on Investments Not Analyzed - -- - -- -- - -- -- Other Not Analyzed - -- - -- -- - -- -- Source: Town of Vail, Economic & Planning Systems Note: Some revenue, a re not analyzed because they are either a)d. not vary d, redlly with new d,elopmeht or b)are minorrevenue sources that will not significantly affed the fi—l'i ­d by Economic & Planning Systems 18 of 48 November 11, 2010 11/1(,/2010 4 -2 -IS DRAFT Table 13 General Fund Expenses and Estimating Methods Avg. Cost 2006 -2008 Method Cost Expenditures by Type 2006 2007 2008 2009 Avg. Numerator Estimating Method CAFR CAFR CAFR Amended Budget (2006 - 2008 Avg.) Municipal Services: Town Officials $1,171,124 $1,245,517 $1,224,007 $1,261,297 $1,213,549 - -- Not Analyzed - Fixed Cost Administrative 2,944,160 3,155,193 3,164,384 3,234,825 3,087,912 $3,087,900 Per Peak Person Served Community Development 2.481.703 3,329,590 3 327 400 2,405,353 3 046 231 $3,046,200 Per Peak Person Served Total - General Government 6,596,987 7,730,300 7,715,791 6,901,475 7,347,693 Public Safety Police 4,451,637 4,799,831 5,047,503 5,315,289 4,766,324 - -- Case Study - # of Calls Fire 2.083.075 2.305.073 2.577.087 2.735.009 2.321.745 - -- Case Study - # of Calls Total - Public Safety 6,534,712 7,104,904 7,624,590 8,050,298 7,088,069 Public Works and Transportation Highways and Streets 3,020,483 3,134,300 3,717,159 3,552,133 3,290,647 - -- Case Study Transportation 3,176,855 3,390,419 3,853,826 4,629,449 3,473,700 - -- Case Study Parking Operations 705,679 795,353 926,689 - -- 809,240 - -- Not Analyzed Facility Maintenance 2,722,637 3.045.019 3.281.389 3,723,070 3.016.348 $3,016,300 Per Peak Person Served Total - Public Works 9,625,654 10,365,091 11,779,063 11,904,652 10,589,936 Culture and Recreation Contributions and Special Events 986,792 1,293,767 1,541,498 1,524,634 1,274,019 - -- Discretionary Expense - Not Analyzed Special Recreation Facilities 196,854 168,224 161,594 - -- 175,557 - -- Fixed Cost- Not Analyzed Library 664,856 752,031 828,056 825,745 748,314 -- Fixed Cost - Not Analyzed Total - Culture and Recreation $1,848,502 $2,214,022 $2,531,148 $2,350,379 $2,197,891 Total Expenditures $24,605,855 $27,414,317 $29,650,592 $29,206,804 $27,223,588 Revenue Over or Under Expenditures $3,772,012 $4,624,166 $4,159,170 - $463,075 $1,355,228 Source: Town of Vail', Economic 8 Planning Systems Note: Some expenses are not analyzed because they are either a) are not directly linked to new development or blare minor expenses that will not significantly affect the fiscal impact of the project. H we,z �,veu ru�i y maae�,�izoe,za,�i maaeF „- n- zo,nwns- ce�i rim Ewe..a. Prepared by Economic & Planning Systems 19 of 48 November 11, 2010 11/16/2010 4 -2 -19 DRAFT Table 14 General Fund Cost Multipliers Cost Factors 2006 -2008 Avg. Denom- Gross % Net Expenditures by Type Estimating Method Expenses inator Multiplier Variable Multipler Municipal Services: Administrative Per Peak Person Served $3,087,900 31,120 $99.23 50% $49.61 Community Development Per Peak Person Served $3,046,200 31,120 $97.89 50% $48.94 Public Safety Police Case Study - # of Calls - -- See case study Fire Case Study - # of Calls -- See case study Public Works and Transportation Highways and Streets Case Study - -- See case study Transportation Case Study - -- See case study Parking Operations Not Analyzed - -- - -- - -- -- — Facility Maintenance Per Peak Person Served $3,016,300 31,120 $96.92 75% $72.69 Source: Town of Vail: Economic & Planning Systems 1 -121--1 F—I v —1e 1lmr2f- 1— .1xisliaa Prepared by Economic & Planning Systems 20 of 48 November 11, 2010 11/16 /2010 4 -2 -20 DRAFT Table 15 Town of Vail Sales Tax Structure Tax Rate State of Colorado 2.9% Eagle County 1.0% Eagle County Transportation 0.5% Town of Vail 4.0% Total Sales Tax 8.4% Vail Local Marketing District (Lodging) 1.4% Total Lodging Tax 9.8% Source: Town of Vail; Economic & Planning Systems H -1 al1-1. v aislmoian- 1mI.11i -n -mao wsPSSaies Tx Std Prepared by Economic & Planning Systems 21 of 48 November 11, 2010 11/16/2010 4 -2 -21 DRAFT 4. Revenue Analysis Prepared by Economic & Planning Systems 22 of 48 November 11, 2010 11/16/2010 4 -2 -22 DRAFT Table 16 Market Value and Property Tax Summary Units Market Value & Property Tax Unit Type Factors Phase Phase ll Phase Phase ll Market Value Hotel $426,000 102 0 $43,452,000 $0 Branded Residences $1,800,000 76 0 $136,800,000 $0 Condominiums $1,800,000 158 149 $284,400,000 $268,200,000 Deed Restricted Rental $102,000 8 18 $816,000 $1,836,000 Deed Restricted For -Sale $406,250 12 7 $4,875,000 $2,843,750 Retail and Restaurant - -- - -- - -- $18,092,000 $0 Other Commercial — - -- - -- $11.021.000 $1.545.000 Total 356 174 $499,456,000 $274,424,750 Cumulative 356 530 $499,456,000 $773,880,750 Assessed Value Hotel 29.00% $12,601,080 $0 Residential 7.96% $33,980,524 $21,721,228 Commercial 29.00% $8.442.770 $448,050 Total $55,024,374 $22,169,278 Cumulative $55,024,374 $77,193,652 Property Tax by Phase Road and Bridge . per $1,000 $44,000 $18,000 URA Tax Increment (expires 2030, includes General Fund portion) 46.124 per $1,000 $2,538,000 $1,023,000 General Fund Property Tax After 2030 4.690 per $1,000 $258,000 $104,000 Cumulative Property Tax Road and Bridge $44,000 $62,000 URA Tax Increment (expires 2030) $2,538,000 $3,561,000 General Fund Property Tax After 2030 $258,000 $362,000 Source: Economic & Planning Systems H I- -I ru.i y 1.d­izosi24.1 maaew,-n -zo, nwne -nv P., T. Prepared by Economic & Planning Systems 23 of 48 November 11, 2010 11/16/2010 4 -2 -23 DRAFT Table 17 Affordable Rental Unit Pricing Description Calculation Median Family Income, 2.0 Person Household, 80% of AM] $51,200 Payment Capacity Monthly Payment [1] $1,200 Gross Potential Income $14,400 Occupancy 85% Effective Gross Income $12,240 Operating Expenses 25/ -3060 Net Operating Income (NOI) $9,180 Cap Rate 9.0% Market Value /Unit $102,000 [11 Estimated from HUD fair market rent data for Eagle County. Source: Economic & Planning Systems H�oo,z�vau r� v nn �aslmo ,an�m�a� „- „- m,owmaam�Mv Prepared by Economic & Planning Systems 24 of 48 November 11, 2010 11/16/2010 4 -2 -24 DRAFT Table 18 Hotel Valuation Description Phase I Phase II Average Daily Rate $350 $350 Rooms 102 0 Days 365 365 Potential Gross Income $13,030,500 $0 Occupancy 60% 60 Effective Gross Income $7,818,300 $0 Operating Expenses 50% 50% Net Operating Income (NOI) $3,909,150 $0 Capitalization Rate 9.0% 9.0 Market Value $43,435,000 $0 Per Room $426,000 - -- Source: Economic & Planning Systems H-12 --l-1 1s i1w,an— Im.a111 - 111m 11 Prepared by Economic & Planning Systems 25 of 48 November 11, 2010 11/16/2010 4 -2 -25 DRAFT Table 19 Commercial Market Value Sq. Ft. Market Value Rent/ Capitalization Per Description Sq. Ft. Occupancy Rate Phase I Phase II Phase I Phase II Total Sq. Ft. Retail and F &B Restaurant $50 85% 10.0% 16,090 0 $6,838,000 $0 56,838,000 $425 Nightclub $20 85% 10.0% 6,013 0 1,022,000 0 1,022,000 $170 Sporting /Apparel $50 85% 10.0% 11,118 0 4,725,000 0 4,725,000 $425 Spa and Other Leaseable Retail $50 85% 10.0% 5,881 0 2,499,000 0 2,499,000 $425 Grocer $25 85% 10.0% 14 156 0 3.008.000 0 3.008.000 $212 Subtotal 53,258 0 $18,092,000 $0 $18,092,000 Other Commercial Space Skier Services- Ticketing $15 85% 10.0% 2,489 0 $317,000 $0 $317,000 $127 Children's Skier Services $15 85% 10.0% 0 12,114 0 1,545,000 1,545,000 $128 Spa $20 85% 10.0% 9,870 0 1,678,000 0 1,678,000 $170 Office $30 85% 10.0% 35395 0 9.026.000 0 9.026.000 $255 Subtotal 57,417 12,114 $11,021,000 $1,545,000 $12,566,000 Totals 110,675 12,114 $29.113,000 $1,545.000 $30.658.000 $250 Source: Economic & Planning Systems HH 1 al1­1. v assimo,21— 1 .1a1 11 - „- maownscomma�a Prepared by Economic & Planning Systems 26 of 48 November 11, 2010 11/16/2010 4 -2 -26 DRAFT Table 20 Lodging Sales Tax Estimate Description Factors Phase I Phase II Room Nights (Units X Occ'y X 365 Nights) Hotel 22,300 0 Branded Residences 12,500 0 Condominiums 23100 21800 Total 57,900 21,800 Avg. Daily Lodging Sales Rate Hotel $350 $7,805,000 $0 Branded Residences $450 $5,625,000 $0 Condominiums $550 $12.705.000 $11.990.000 Total $26,135,000 $11,990,000 Cumulative $26,135,000 $38,125,000 4% Sales Tax by Phase General Fund 60% $627,000 $288,000 Capital Fund 40/ $418,000 $192,000 Cumulative 4% Sales Tax General Fund 60 $627,000 $915,000 Capital Fund 401% $418,000 $610,000 1.4% Local Marketing District Tax By Phase $366,000 $168,000 Cumulative $366,000 $534,000 Source: Economic & Planning Systems H- 12— r-lF —I v m 1a 1[2oran- 1 moaewr- n- mmw]mroging.zx Prepared by Economic & Planning Systems 27 of 48 November 11, 2010 11/16/2010 4 -2 -27 DRAFT Table 21 1.0% Real Estate Transfer Tax Revenue Sales Volume 1.0% RETT Total/ Unit Type Factors Phase I Phase II Phase I Phase II Buildout Initial Developer Sales Mkt. value Branded Residences $1,BOo,oao $136,800,000 $0 $1,368,000 $0 $1,368,000 Condominiums $1,80o,000 284,400,000 268,200,000 2,844,000 2,682,000 5,526,000 Deed Restricted Rental - -- - -- - -- - -- - -- 0 Deed Restricted For -Sale $406,250 4,875,000 2,843,750 49, 000 28, 000 77, 000 Total $426,075,000 $271,043,750 $4,261,000 $2,710,000 $6,971,000 Cumulative $426,075,000 $697,118,750 $4,261,000 $6,971,000 Annual Resales of Built Units Turnover Rate Branded Residences 4.5% $6,156,000 $0 $62,000 $0 $62,000 Condominiums 4.5% 12,798,000 12,069,000 128,000 121,000 249,000 Deed Restricted Rental - -- - -- -- - -- -- 0 Deed Restricted For -Sale 4.5/ 219.000 128.000 2 000 1 000 3 000 Total $19,173,000 $12,197,000 $192,000 $122,000 $314,000 Cumulative $19,173,000 $31,370,000 $192,000 $314,000 Source: Economic & Planning Systems H¢ 12EVe 1FS.i ws]21 Rrr aevenue Prepared by Economic & Planning Systems 28 of 48 November 11, 2010 11/16/2010 4 -2 -28 DRAFT Table 22 Lift Tax Revenue Lodging Occupancy Visitor Days Skier Visits Ski Branded Season Branded Condo- Resid- Condo- Skier Time Period Days Hotel Residences miniums Hotel ences miniums Total Participation Days Skied Lift Tax [11 70', 80% $1.91 /Skier Visit Phase I 20 -Nov 30 -Nov 10 33% 25% 22% 500 299 307 1,106 775 620 $1,200 1 -Dec 31 -Dec 30 53% 40% 36% 2,285 1,436 1,475 5,196 3,637 2,910 5,600 1 -Jan 31 -Jan 30 90% 68% 60% 3,856 2,424 2,489 8,768 6,138 4,910 9,400 1 -Feb 28 -Feb 27 90% 68% 60% 3,470 2,182 2,240 7,891 5,524 4,419 8,400 1 -Mar 31 -Mar 30 90% 68% 60% 3,856 2,424 2,489 8,768 6,138 4.910 9,400 1 -Apr 18 -Apr 17 53% 40% 36% 1 295 814 836 2 2 061 1.649 3 100 Totals 144 15,261 9,579 9,834 34,674 24,272 19.417 $37,100 Phase II 20 -Nov 30 -Nov 10 33% 25% 22% 0 0 290 290 203 162 $300 1 -Dec 31 -Dec 30 53% 40% 36% 0 0 1,391 1,391 973 779 1,500 1 -Jan 31 -Jan 30 90% 68% 60% 0 0 2,347 2,347 1,643 1,314 2,500 1 -Feb 28 -Feb 27 90% 68% 60% 0 0 2,112 2,112 1,478 1,183 2,300 1 -Mar 31 -Mar 30 90% 68% 60% 0 0 2,347 2,347 1,643 1,314 2,500 1 -Apr 18 -Apr 17 53% 40% 36% 0 0 788 788 552 441 800 Totals 144 0 0 9,274 9,274 6,492 5,193 $9,900 Cumulative 15,261 9,579 19,108 43,948 30,764 24.611 $47,000 [t] Town of Vail analysis indicated an average of $1.91 in lift tax per skier visit. Source: Economic & Planning Systems H ­121 --1 1S 1 new 1e 1[moians 1mm.Fii -ii -meow ]zuWm.ax Prepared by Economic & Planning Systems 29 of 48 November 11, 2010 I1 /16 /2010 4 -2 -29 DRAFT 5. Cost Analysis Prepared by Economic & Planning Systems 30 of 48 November 11, 2010 11/16/2010 4 -2 -30 DRAFT Table 23 Annual Public Right -of -Way Maintenance Costs Labor & Equipment Hours $ /Hour # of Times Total Snow Removal, Hauling, Sweeping Loaders 2.0 $125 55 $13,750 Plow Truck 1.0 $110 55 $6,050 Loaders - Roundabouts 8.0 $125 14 $14,000 Loader and Blower- Roundabouts 8.00 $305 14 $34,160 End dump trailers 24.00 $110 14 $36,960 Summer Sweeping 2.00 $225 30 $13,500 Materials Qty. Cost Total Magnesium Chloride (gal.) 5,000 $0.90 $4,500 Cinders (ton) 100.00 $30 $3,000 Subtotal (Rounded) [11 $126,000 Landscaping /Grounds Ever Vail Roundabout $0.60 /SF 38,430 Sq. Ft. $23,000 Total $149,000 [11 Costs include 0.5 FTEs Source: Town of Vail: Economic & Planning Systems H¢ooizEVervau ris�i v n�eislmoians�i moaewi n mmwslzsso-ees Prepared by Economic & Planning Systems 31 of 48 November 11, 2010 11/16/2010 4 -2 -31 DRAFT Table 24 Lionshead Single Family Equivalents for Estimating Public Safety Call Volume Dwelling Accomm. Empl. Comm. Sq. Total Police Fire Project Units Units Housing Ft. SFEs Calls Calls Landmark 76 0 2 12,445 40 11 Lift House 45 0 0 13,357 54 1 Lionshead Centre 25 0 0 19,550 17 8 Lionshead Arcade 16 0 0 5,200 3 1 Lion Square Lodge 109 28 0 4,850 33 12 Arabelle 67 85 0 43 524 149 4 Totals 338 113 2 98,926 296 37 Single Family Equivalents (SFEs) Conversion Factor 1.00 0.35 1.00 3,000 SFEs 338 40 2 33 413 Calls per SFE 0.72 0.09 Lionshead Structure Parking Spaces 1,250 192 11 Calls per Parking Space 0.154 0.009 Source: Town of Vail, Economic & Planning Systems Prepared by Economic & Planning Systems 32 of 48 November 11, 2010 I1 /lb /2010 4 -2 -32 DRAFT Table 25 Project SFEs and Calls for Service Single Family Equivalents Phase I Phase II Totals Ever Vail SFEs SFEs /Unit Hotel 0.35 35.7 0.0 35.7 Branded Residences 1.00 76.0 0.0 76.0 Condominiums 1.00 158.0 149.0 307.0 Deed Restricted Rental 1.00 8.0 18.0 26.0 Deed Restricted For -Sale 1.00 12.0 7.0 19.0 Commercial (Sq. Ft./SFE) 3,000 36.9 4_0 40.9 Total SFEs 326.6 178.0 504.6 Residential and Comm. Calls Calls/SFE Police 0.72 234 128 362 Fire 0.09 29 16 45 Parking Calls Calls /Space Police 0.154 157 67 224 Fire 0.009 9.0 4.0 13.0 Total by Phase Police 391 195 586 Fire 38 20 58 Cumulative Police 391 586 586 Fire 38 58 58 Source: Economic 8 Planning Systems H 21112 Ere -I F,.1 y mad­i2osi24.1.- 111 -11 0w 1P 1ceir, Prepared by Economic & Planning Systems 33 of 46 November 11, 2010 I1 /lb /2010 4 -2 -33 DRAFT Table 26 Estimated Cost of Police Service Base Call Load Avg. Ann. Calls, 2005 -2009 45,200 Avg. Staff Level, 2005- 2009 54.4 Avg. Calls per Staff 831 Impacts by Phase Phase I Phase II Project Calls 391 195 Total Police Calls (new calls plus base call load) 45,591 45,395 Total Staff 331 54.86 54.63 Additonal Staff by Phase 54.4 0.46 0.23 Rounded to Whole Staff Person 0.00 0.00 Staff Cost by Phase Additional Officers 0.00 0.00 Starting Salary wBenefits (annual) $66,151) $0 $0 Annual Training per Officer $ 11,000 Total Annual Cost $0 $0 One -Time Training & Equip. $65,000 $0 $0 Cumulative Impacts Phase I Phases I & II Project Calls 391 586 Total Police Calls (new calls plus base call load) 45,591 45,786 Total Staff 331 54.86 55.10 Additional Staff by Phase 14.4 0.46 0.70 Rounded to Whole Staff Person 0.00 1.00 Cumulative Staff Cost Additional Officers 0.00 1.00 Starting Salary w /Benefits (annual) $66,150 $0 $66,150 Annual Training per Officer $ 11,000 $ 0 $11,000 Total Annual Cost $0 $77,150 One -Time Training & Equip. $65,000 $0 $65,000 Source: Economic & Planning Systems Prepared by Economic & Planning Systems 34 of 48 November 11, 2010 I1 /lb /2610 4 -2 -34 DRAFT Table 27 Estimated Cost of Fire Service Base Call Load Avg. Ann. Calls, 2005 -2009 1,800 Avg. Staff Level, 2005 -2009 26.82 Avg. Calls per Staff 67 Impacts by Phase Phase I Phase II Project Calls 38 20 Total Calls (new calls plus base call load) 1,838 1,820 Total Staff 67 27.43 27.16 Additonal Staff by Phase 26.82 0.61 0.34 Rounded to Whole Staff Person 1.00 0.00 Staff Cost by Phase Additional Officers (rounded to whole staff) 1.00 0.00 Starting Salary wBenefits (annual) $67,400 $67,400 $0 Ann. Clothing, Equip., Training / Staff $5,200 $9,200 Total Annual Cost $76,600 $0 One -Time Training & Equip. $7,800 $7,800 $0 Impacts by Phase Phase I Phases I & II Project Calls 38 58 Total Calls (new calls plus base call load) 1,838 1,858 Total Staff 67 27.43 27.73 Additonal Staff by Phase 26.82 0.61 0.91 Rounded to Whole Staff Person 1.00 1.00 Cumulative Staff Cost Additional Officers 1.00 1.00 Starting Salary w /Beneftts (annual) $67,400 $67,400 $67,400 Ann. Clothing, Equip., Training / Staff $5,200 $9,200 $9,200 Total Annual Cost $76,600 $76,600 One -Time Training & Equip. $7,800 $7,800 $7,800 Source: Economic & Planning Systems Prepared by Economic & Planning Systems 35 of 48 November 11, 2010 11/16/2010 4 -2 -35 DRAFT Table 28 Transit Impacts Total/ Description Phase I Phase II Cumulative Annual Operations Impacts [1] $111,300 Impact by Phase 100% 0 Total Impact $111.300 $0 $111,300 Capital Impact Impact by Phase Hybrid Bus $600,000 3 0 Total Impact $1,800,000 $0 $1,800,000 Source: Economic & Planning Systems [1] LSC Transportation Consultants July 23, 2010 Memorandum. Hzooz�wau Fs�i v n�aisizoorh�i m�a�i- >>- mmwslza.asn Prepared by Economic & Planning Systems 36 of 48 November 11, 2010 11/16/2010 4 -2 -36 DRAFT 6. One Time Fees and Other One Time Revenues Prepared by Economic & Planning Systems 37 of 48 November 11, 2010 I1 /lb /2010 4 -2 -37 DRAFT we(W) Morel a $43452,000 $o $43,452,000 c a�damlumae�cea 2 12 o a mmemial 5499,4 a, 0 S2]4p o $]]3 5 0, o Hl. ° $30,590,000 $0 $30,590,000 12 : 000 ea Far -sale 21,- 000 5 05 mmemial 2ao^,n o^,n 0053 121 12,737,000 0 12:737: 7000 oa $352,900,000 $193,65],000 $546,045,000 GZA 4611,067 2]3 63,340 $754 $614 $698 ost m $20,169,000 $0 $20,169,000 63 es 1 1 156:761 56 2]5000 mmem�al QOM`` o a $:3:,:94,000 $12� 588,000 $359,66:,000 coat $20,169,000 $0 $20,169,000 63 1=,�R_111111 63 1 1 2552630000 000 92099 R. ea Far -sale 2314000 1,346 651 00 R1, comma �al 5290,000 11,406,000 0 11:4 000 Totals $2,32,2N,000 $1275 0 000 $359,001, 0 on value $40,3]6,000 $0 $40,3]6,000 000 es 127 ,2gg 900 249,234,990 0 12 7 12 000 7. 000 0 ea Far -Sale 2696000 7:316 00 oil comma �al 1464 000 16,1112,000 16,112,000 $464,5 $255,176,000 $719,]8 ,000 200 200 400 value $10,000,000 $10,000000 $20,000000 Metenels w^,n $5,000,000 $5000,000 $10000,000 am y F=oao,mae.ai,a y m, 11/16/2010 saor<a uo�emna 10 4 -2 -3K DRAFT Table 30 Building Permit and Plan Review Fees, and Construction Use Tax Estimate Phase I Phase II Totals Building Permit & Plan Review Fees [1] Permit Fee Hotel $160,559 $0 $160,559 Branded Residences 501,279 0 501,279 Condominiums 1,040,019 980,889 2,020,908 Deed Restricted Rental 4,937 8,660 13,597 Deed Restricted For -Sale 19,753 12,338 32,091 Retail and Restaurant 67,995 0 67,995 Other Commercial 42,185 7,598 49,783 Parking 38459 38459 76918 Total Permit Fee $1,875,184 $1,047,944 $2,923,128 Plan Review Fee 65% $1,218,870 $681,164 51,900,034 4% Construction Use Tax on Materials Hotel $807,560 $0 $807,560 Branded Residences 2,542,520 0 2,542,520 Condominiums 5,285,760 4,984,680 10,270,440 Deed Restricted Rental 15,680 35,240 50,920 Deed Restricted For -Sale 92,400 53,920 146,320 Retail and Restaurant 336,240 0 336,240 Other Commercial 211.600 29680 241.280 Total $9,291,760 $5,103,520 $14,395,280 Parking Structure Construction Fees Permit Fee $38,459 $38,459 Plan Review Fee 65% $24,998 $24,998 4% Use Tax $200,000 $200,000 [1] $5,606.75 for the first $1.o rrillb, in construction value plus $3.65 per $1,000 of ,dditi,ral value. Source'. Economic & Planning Systems Prepared by Economic & Planning Systems 39 of 48 November 11, 2010 wlsi2ot6 4 -2 -39 DRAFT Table 31 Recreation Impact Fee Unit Type Factor Phase I Phase II Total Residential Square Feet 468,067 315,273 Recreation Impact Fee $1.00 $468,067 $315,273 $783,340 Source: Economic & Planning Systems H-121— 1F-1 v n 1� 1[21121- 1.1awi- n- mmwsloiampaa �s Prepared by Economic & Planning Systems 40 of 48 November 11, 2010 11/16/2010 4 -2 -40 DRAFT Table 32 Traffic Mitigation Fee at Project Buildout Description Calculation PM Peak Hour Trips at Buildout 385 Fee per PM Peak Hour Trip $6 500 Traffic Mitigation Fee [1] $2,502,500 [t] The Fee is based on a Study completed by Kimley Horn for the Town of Vail. Source: Kimley Horn, Vail Resorts, Economic & Planning Systems H —121 --11 -1 new 1. 1[21121 1.1.111 -11111 w]oz -Tame Prepared by Economic & Planning Systems 41 of 48 November 11, 2010 wtsl2oto 4 -2 -41 DRAFT 7. Fiscal Impacts Prepared by Economic & Planning Systems 42 of 48 November 11, 2010 11/16/2010 4 -2 -42 DRAFT Table 33 Estimated Annual General Fund Revenues By Phase Cumulative Revenue Net Factor Method Phase I Phase II Phase I Phasea I & II Local Taxes: Retail Sales Tax -- Case Study $273,000 $100,000 $273,000 $372,000 4.0% Lodging Sales Tax Case Study $627,000 $288,000 $627,000 $915,000 Property and Ownership - -- Case Study - -- - -- -- - -- Ski Lift Tax - -- Case Study $37,100 $9,900 $37,100 $47,000 Intergovernmental Revenue County Sales Tax - -- Case Study $18,000 $6,000 $18,000 $25,000 County Road and Bridge Prop. Tax [1] - -- Case Study $0 $0 $0 $0 Cigarette Tax $2.61 Per Peak Person Served $1,800 $900 $1,800 $2,600 Charges for Services Fines and Forfeitures $11.03 Per Peak Person Served $7,500 $3,700 $7,500 $11,200 Other Charges, Services, and Sales $10.51 Per Peak Person Served $7,100 $3,600 $7,100 $10,700 General Fund Revenue from Project $971,500 $412,100 $971,500 $1,383,500 General Fund Property Tax to URA $258,000 $104,000 $258,000 $362,000 Other Taxing Entities Tax Increment $2.280.000 $919,000 $2.280.000 $3.199.000 Total Property Tax Increment to URA [1] $2,538,000 $1,023,000 $2,538,000 $3,561,000 [t] The project is within a URA, therefore property tax goes to the URA as tax increment, rather than to the General Fund until 2030. After 2030, property tax will be re- directed to the General Fund. Source: Economic & Planning Systems H�oo,z�wau r�i v n�a,hoo,��m�a� „- „- �ombm�aaa�w Prepared by Economic & Planning Systems 43 of 48 November 11, 2010 I1 /lb /2010 4 -2 -43 DRAFT Table 34 Estimated Annual General Fund Expenses By Phase Cumulative Net Expenditures by Type Multipler Estimating Method Phase I Phase II Phase I Phases I & II Municipal Services: Administrative $49.61 Per Peak Person Served $33,600 $16,800 $33,600 $50,300 Community Development $48.94 Per Peak Person Served $33,100 $16,500 $33,100 $49,700 Public Safety Police - -- Case Study - # of Calls $0 $0 $0 $77,150 Fire - -- Case Study - # of Calls $76,600 $0 $76,600 $76,600 Public Works and Transportation Right -of -Way and Landscaping - -- Case Study $149,000 $149,000 $149,000 $298,000 Transportation Operations [1] - -- Case Study $111,300 $0 $111,300 $111,300 Facility Maintenance $72.69 Per Peak Person Served $49,200 $24,600 $49,200 $73,800 Total Impact to General Fund $452,800 $206,900 $452,800 $736,850 [1] LSC Transportation Consultants July 23, 2010 Memorandum. Source: Economic & Planning Systems H- 12E --1F -1 v mw 1e 1[mian-1 m1..1i]iaen _ a_1z — Prepared by Economic & Planning Systems 44 of 48 November 11, 2010 11/16/2010 4 -2 -44 DRAFT Table 35 Annual Net Fiscal Impact to General Fund By Phase Cumulative Description Phase I Phase II Phase I Phase II Revenue Local Taxes. 4.0% Retail Sales Tax [1] $273,000 $100,000 $273,000 $372,000 4.0% Lodging Sales Tax $627,000 $288,000 $627,000 $915,000 Ski Lift Tax $37,100 $9,900 $37,100 $47,000 Intergovernmental Revenue County Sales Tax $18,000 $6,000 $18,000 $25,000 County Road and Bridge Prop. Tax $0 $0 $0 $0 Cigarette Tax $1,800 $900 $1,800 $2,600 Charges for Services Fines and Forfeitures $7,500 $3,700 $7,500 $11,200 Other Charges, Services, and Sales $7,100 $3,60 0 7 100 $10,70 0 Total Revenue $971,500 $412,100 $971,500 $1,383,500 Expenses Municipal Services: Administrative $33,600 $16,800 $33,600 $50,300 Community Development $33,100 $16,500 $33,100 $49,700 Public Safety Police $0 $0 $0 $77,150 Fire $76,600 $0 $76,600 $76,600 Public Works and Transportation Right -of -Way and Landscaping $149,000 $149,000 $149,000 $298,000 Transportation Operations 12] $111,300 $0 $111,300 $111,300 Facility Maintenance $49,200 $24,60 0 49 200 $73,80 0 Total Expenses $452,800 $206,900 $452,800 $736,850 Net Fiscal Impact $518,700 $205,200 $518,700 $646,650 [1] See attached sales tax and retail sales model. [2] LSC Transportation Consultants July 23, 2010 Memorandum. Source'. Economic & Planning Systems Prepared by Economic & Planning Systems 45 of 48 November 11, 2010 11/16/2010 4 -2 -45 DRAFT Table 36 General Fund One -Time Revenues and Costs Totals/ Phase Phase 11 Buildout General Fund One -Time Revenues Building Permit Fee [1] $1,875,184 $1,047,944 $2,923,128 Plan Review Fee [1] $1.218.870 $681,164 $1.900.034 Total $3,094,054 $1,729,108 $4,823,162 General Fund One -Time Costs Police Training & Equip. $0 $65,000 $65,000 Fire Training & Equip. $7,800 $7,800 $15,600 Total $7,800 $72,800 $80,600 [11 Building permit and plan review fees contribute to the cost of development review, permitting, inspection, and Community Development and Building administrative functions. Source: Town of Vail; Economic & Planning Systems 1¢ 12FVe lFi-I v nno 1e1[2 m21- 1moaewi- n- mmwslosone Time Imp Prepared by Economic & Planning Systems 46 of 48 November 11, 2010 11/16/2010 4 -2 -46 DRAFT Table 37 Capital Fund Impact Costs and Revenues Phase I Phase II Totals/ Buildout One Time Revenues Construction Use Tax $9,291.760 $5.103.520 $14.395.280 Traffic Mitigation Fee [1] $1,251,250 $1.251.250 $2.502,500 Annual Sales Tax by Phase 4.0% Sales Tax (Annual) $181,800 $66,464 4.0% Lodging Sales Tax (Annual) $418,000 $192,000 Total Sales Taxes $599,800 $258,464 N/A Cumulative Sales Tax 4.0% Sales Tax (Annual) $181,800 $248,232 4.0% Lodging Sales Tax (Annual) $418,000 $610,000 Total Sales Taxes $599,800 $858,232 Capital Fund Costs (3 Hybrid Buses @ $600K ea.) $1.800.000 $0 $1.800.000 [t] The Fee is based on a Study completed by Kimley Horn for the Town of Vail. Source: Economic & Planning Systems H- 12— r-11 -1 v n eis1[21 --1— .111- n- mmws]— plz1wm Prepared by Economic & Planning Systems 47 of 48 November 11, 2010 I1 /lb /2010 4 -2 -47 DRAFT Table 38 Other Funds Impacts Fund Phase I Phase II Totals/ Buildout RETT Fund One Time Revenue RETT - Developer Sales $4,261,000 $2,710,000 $6,971,000 Recreation Impact Fee $468,067 $315,273 $783,340 Total One Time Revenue $4,729,067 $3,025,273 $7,754,340 RETT Fund Annual Revenue RETT on Resales $192,000 $122,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $366,000 $168,000 $534,000 Urban Renewal Authority Property Tax Town Mill Levy (4.69 Mills) (Annual) [1] $258,000 $104,000 $362,000 Other Taxing Entities (Annual) $2,280,000 $919,000 $3,199,000 Annual Property Tax Increment $2,538,000 $1,023,000 $3,561,000 [1] Reverts to General Fund after URA expires in 2030. Source: Economic & Planning Systems H-1 a1 11s-1 . v aisimoian- 1m1.111 maowshdo1,F,— Prepared by Economic & Planning Systems 48 of 48 November 11, 2010 I1 /lb /2010 4 -2 -48 DRAFT Table ES -1 Summary of Annual Fiscal Impacts - Low Scenario By Phase - Standalone Cumulative Impact by Phase Fund Phase Phase ll Phase Phases l &11 General Fund Revenues $735,800 $298,200 $735,800 $1,033,900 Expenses [1] -$435,600 - 198 000 -$435,600 - 710 750 Net Fiscal Impact $300,200 $100,200 $300,200 $323,150 Capital Fund One -Time Use Tax $9,157,200 $5,103,520 - -- -- Annual Sales Tax $457,096 $188,264 $457,096 $645,344 RETT One -Time Developer Sales $4,729,067 $3,025,273 Annual Resales $192,000 $122,000 $192,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $294,000 $126,000 $294,000 $420,000 Urban Renewal Authority General Fund Property Tax to URA [2] $248,000 $104,000 $248,000 $352,000 Other Taxing Entitles Tax Increment $2.193.000 $919,000 $2.193.000 $3.112.000 Total Property Tax Increment $2,441,000 $1,023,000 $2,441,000 $3,464,000 [1] Expenses by phase d. not add 1. the cumulative impacts of the entire pmj.d Police is not estimated 1. need addif rai staff 1. serve individual phases, but would need an estimated 1 officer(. serve the project if both phases are built, Fire is e,ti—fi,d 1, need an additbrai staff person 1. serve Phase I, which will also cover Phase I I. [2] The project is largelywilhin the Li.nshead URA, This revenue reverts 1. General Fund after URA expires in 2030. Source'. Economic & Planning Systems Prepared by Economic & Planning Systems 1.f3 Novemeber 9, 2010 I1 /16 /2010 4 -3 -1 DRAFT Teble2 Resitlential antl Accommotlat — Assumptions- Occupaniig -Low Scenar Descnp0on Phasel Phase 11 %In Rental Pool Hotel 1do% t00% Brantletl Resltlenoes 65 °/ 65% Contlominlums(Free Market) 35 °/ 35% Deetl Restrlotetl Rental d% Deetl Restricted For -Sale o% 0 °/ %Secontl Homes ( "COId Betls') Hotel o% 1% Brantletl Resitlences 25°/ 25°/ Cd,d— nlums(Free Market) 40% 40% Deed Restrlotetl Rental o% o% Deed Restrlotetl For -Sale 0 °/ o% % Peim anent Resitlents Hotel 0 °/ o% Brantletl Resitlences o% o% Cd,d— nlums(Flee Market) to% to% Deetl Restrlotetl Rental 100 ° / t00% Deed Restrlotetl For -Sale t00% t00% Total (Adds to 100% by unit Type) Hotel t00% t00% Brantletl Resltlenoes 9o% 90% Cd,d— nlums(Free Market) Deed Restrlotetl Rental t00% t00% Deed Restrlotetl ForSele t00% t00% Annual Occupancy Hotel 50% 5o% Brantletl Resitlences 4o% 4o% Contlominlumsln Rental P.1 30% 30% Secontl Home Contlominiums 20 °/ 20% Peak Occupancy Hotel 9o% 9o% Brantletl Resitlences 9o% 9o% Contlominlumsln Rental P-1 90°/ ho% Secontl Home Contlominiums 5o% 50°/ Persons per Uni[ Hotel 20 3.0 ed Resitlences 3.0 3.0 Cd,d Contlominlumsln Rental POOI 3.5 3.5 Secontl Home Contlominiums 2.5 2.5 Permanent Resitlents 2.09 2.09 %. Guests NM New Hotel 60% 6o% Brantletl Resitlences 6o% 6o% Contlominlumsln Rental P-1 4o% 4o% Secontl Home COntlominlums 1do% 100% _2 Home Brantletl Resitlences t00% t00% M1i oe ere vmem comv y Prepereb byEronornlc I Plennlrtg systems 2 ot3 Noverneb f0 unwzoio 4.3.2 DRAFT Table 35 Annual Net Fiscal Impact to General Fund - Low Scenario By Phase Cumulative Description Phase I Phase II Phase I Phase II Revenue Local Taxes. 4.0% Retail Sales Tax [1] $182,000 $68,000 $182,000 $250,000 4.0% Lodging Sales Tax $504,000 $215,000 $504,000 $719,000 Ski Lift Tax $22,800 $4,300 $22,800 $27,100 Intergovernmental Revenue County Sales Tax $13,000 $4,000 $13,000 $17,000 County Road and Bridge Prop. Tax $0 $0 $0 $0 Cigarette Tax $1,500 $700 $1,500 $2,200 Charges for Services Fines and Forfeitures $6,400 $3,200 $6,400 $9,500 Other Charges, Services, and Sales $6,100 $3,00 0 6 100 $9,10 0 Total Revenue $735,800 $298,200 $735,800 $1,033,900 Expenses Municipal Services: Administrative $28,600 $14,200 $28,600 $42,800 Community Development $28,200 $14,000 $28,200 $42,200 Public Safety Police $0 $0 $0 $77,150 Fire $76,600 $0 $76,600 $76,600 Public Works and Transportation Right -of -Way and Landscaping $149,000 $149,000 $149,000 $298,000 Transportation Operations 12] $111,300 $0 $111,300 $111,300 Facility Maintenance $41,900 $20,80 0 41 900 $62,70 0 Total Expenses $435,600 $198,000 $435,600 $710,750 Net Fiscal Impact $300,200 $100,200 $300,200 $323,150 [1] See attached sales tax and retail sales model. [2] LSC Transportation Consultants July 23, 2010 Memorandum. EPS has assumed that 2/3 of the impact occurs in Phase I and 1/3 occurs in Ph, Source'. Economic & Planning Systems Prepared by Economic & Planning Systems 3 0/3 Novemeber 9. 2010 11/]s /2610 4 -3 -3 DRAFT Sales Tax and Sales Erosion Analysis EverVail Fiscal Impact Analysis October 18, 2010 Economic & Planning Systems 1 of 26 November 9, 2010 11/16/2010 4 -4 -1 DRAFT Table A Table of Contents Ever Vail Sales Tax Model Table Description Executive Summary ES -1 Summary of Sales Flows Chart 1 Net Dollar Flows by Village Chart 2 Net Dollar Flows vs. Existing Retail Sales Expenditures and Sales Tax Calculation Table 1 Retail Development Program Table 2 Project Visitor /Resident Expenditure Potential Table 3 Spending Pattern Assumptions Table 4 Ever Vail Visitor /Resident Spending in Project Table 5 Ever Vail Visitor /Resident Spending IN VAIL, Outside Project Table 6 Ever Vail Spending Leakage - Cumulative Table 7 Net New Retail Sales Estimate for Sales Tax Calculation - Town Wide Table 8 Total Retail Spending and Sales Tax Sales Flows and Potential Erosion Table 9 Ever Vail Retail Sales by Source Table 10 Ritz Carlton Spending Estimate Table 11 Ritz Carlton Spending in Ever Vail Table 12 Potential Sales Erosion or Sales Transfers as a Percentage of Existing Vail Retail Sales Appendix Tables Table Al Estimated Day Visitors Spending Table A2 Project Resident Total Income Table A3 Permanent Resident Retail Expenditure Potential Table A4 Vail Village Retail Sales Table A5 Lionshead Retail Sales Table A6 West Vail, Cascade, and Other Areas Sales H —812 Ever Vail Fl-1 A- 1ysis\MOtl- [20812 -EV Sales Tax M-1 11-D-10.. Economic & Planning Systems 2 of 26 November 9, 2010 11/16/2010 4 -4 -2 DRAFT Table ES -1 Summary of Sales Flows Expenditures and Sales Generated by Ever Vail Factors Calculations Notes Total Spending by Ever Vail Guests /Residents In Ever Vail $6,806,000 38% Net new, generates sales tax (Table 7) In Vail, Not in Ever Vail A $9,606,000 53% Net new, generates sales tax (Table 7) Leakage / Down Valley Spending $1.704.000 9% Does not generate sales tax Total Spending $18,116,000 100% Minor difference with Table 2 due to rounding Estimated Spending by Location In Ever Vail $6,806,000 38 Lionshead 35% $2,954,000 16% 35% times 'A' minus $1.166M conveniece goods spending in W. Vail Vail Village 65% $5,486,000 30% 65% times'A' minus $1.166M conveniece goods spending in W. Vail West Vail $1,166,000 6% See Table 5, cumulative convenience goods expenditures Down Valley / Leakage $1.704.000 99 Total Spending $18,116,000 100% Erosion to Ever Spending From Potential Dollar Flows Vail Ever Vail Net Dollar Flows Lionshead $2,632,000 $2,954,000 $322,000 See Table 12 for erosion estimates Vail Village $2,994,000 $5,486,000 $2,492,000 West Vail $1.938.000 $1.166.000 -$772,000 Total $7,564,000 $9,606,000 $2,042,000 Existing Sales Erosion as % of Potential Erosion vs. Existing Sales Net Dollar Flows (2009) Sales Lionshead $322,000 $32,789,000 1.0 Vail Village $2,492,000 $152,700,000 1.6% West Vail -$772,000 $71.807.000 -1.1 Total $2,042,000 $257,296,000 0.8 Source: Economic & Planning Systems H —12 —r-1 F-1 v —121 11211111 Salsa% 11.111 112111 any FS1 Economic & Planning Systems 3 of 26 November 9, 2010 11/16/2010 4 -4 -3 Chart 1 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 -11, Lionshead Vail Village West Vail - $1,000,000 - $2,000,000 ■ Erosion to Ever Vail ■ Spending From Ever Vail Net Dollar Flows i i ie'u[0 4 -4 -4 Chart 2 $180,000,000 ■ Net Dollar Flows Existing Sales (2009) $160,000,000 $140,000,000 m $120,000,000 m m U) $100,000,000 m m 10 $80,000,000 0 0 LL °d $60,000,000 m $40,000,000 $20,000,000 $322,000 $2,492,000 $0 Lionshead Vail Village West Vail - $20,000,000 $772,000 1[46'0[0 4 -4 DRAFT Sales Tax Analysis Economic & Planning Systems 6 of 26 November 9, 2010 11 16 '010 4 -4 -6 DRAFT Table 1 Retail Development Program By Phase Cumulative Description Phase I Phase II Phase I Phase II Square Feet Restaurant 22,103 0 22,103 22,103 Retail 16,999 0 16,999 16,999 Convenience Goods 14156 0 14156 14156 Total 53,258 0 53,258 53,258 Source: Vail Resorts Development Corp., Economic & Planning Systems u-121- -11 -1 v n� 1a 1[moiaeV Say— 11.1 rwsmiow 7ia�am Economic & Planning Systems 7 of 26 November 9, 2010 I1 /lb /2010 4 -4 -7 DRAFT Table 2 Project Visitor /Resident Expenditure Potential Visitor $/Pers./Day Expenditure Potential by Phase Cumulative Expenditure Potential Description Days Retail Conv. F &B Total Retail Conv. F &B Total Retail Conv. F &B Total Phase Hotel 31,270 $60 $10 $100 $170 $1,876,000 $313,000 $3,127,000 $5,316,000 $1,876,000 $313,000 $3,127,000 $5,316,000 Branded Residences in Rental Pool 19,660 60 30 75 165 1,180,000 590,000 1,475,000 3,244,000 1,180,000 590,000 1,475,000 3,244,000 Condos in Rental Pool 20,180 60 30 40 130 1,211,000 605,000 807,000 2,623,000 1,211,000 605,000 807,000 2,623,000 Second Home Condos 15,000 30 30 20 80 450,000 450,000 300,000 1,200,000 450,000 450,000 300,000 1,200,000 Residents 11] - -- - -- - -- - -- - -- 289,000 189,000 85,000 563,000 289,000 189,000 85,000 563,000 Parking Day Visitors [t] - -- -- -- - -- - -- 243,500 74 875 224,625 543,000 243,500 74875 224,625 543,000 Totals 86,110 $5,249,500 $2,221,875 $6,018,625 $13,489,000 $5,249,500 $2,221,875 $6,018,625 $13,489,000 Phase 11 Hotel 0 $60 $10 $100 $170 $0 $0 $0 $0 S1,876,000 $313,000 $3,127,000 $5,316,000 Branded Residences in Rental Pool 0 60 30 75 165 0 0 0 0 1,180,000 590,000 1,475,000 3,244,000 Condos in Rental Pool 19,030 60 30 40 130 1,142,000 571,000 761,000 2,474,000 2,353,000 1,176,000 1,568,000 5,097,000 Second Home Condos 10,880 30 30 20 80 326,000 326,000 218,000 870,000 776,000 776,000 518,000 2,070,000 Residents [11 - -- - -- -- - -- 377,000 247,000 111,000 735,000 666,000 436,000 196,000 1,298,000 Parking Day Visitors 11] - -- -- -- - -- - -- 243.500 74 875 224.625 543.000 487.000 149.750 449.250 1.086.000 Totals 29,910 $2,088,500 $1,218,875 $1,314,625 $4,622.000 $7,338,000 $3,440,750 $7,333,250 $18,111,000 [1] See Appendix Tables Al through A3 for further detail. Source: Economic & Planning Systems H 21112 ErerVeI11. 1-1..11- 1,R1112 1vee1a.ia. 1a1111 -0szo,1 I.V I..,I am Economic & Planning Systems 8 o(26 November 9, 2010 I1 /16 /2010 4 -4 -8 DRAFT Table 3 Spending Pattern Assumptions %Sent in Ever Vail % S ent Elsewhere in Vail % Spent Outside Vail Leakage Total Phase Retail Conv. F &B Retail Conv. F &B Retail Conv. F &B Retail Con, F &B By Phase - Standalone Phase I Hotel 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Branded Residences in Rental Pool 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Condos in Rental Pool 25% 65% 35% 65% 35% 55% 10% 0% 10% 100% 100% 100% Second Home Condos 25% 50% 35%. 65% 40% 55% 10% 10% 10% 100% 100% 100% Residents 10% 35% 10% 55% 50% 70% 35% 15% 20% 100% 100% 100% Parking Day Visitors 50% 100% 50% 50% 0% 50% -- -- -- 100% 100% 100% Phase if Hotel — — __ — — — Branded Residences in Rental Pool -- — -- -- — -- - -- — -- - -- - -- -- Condos in Rental Pool 0% 0% 0% 90% 100% 90% 10% 0% 10% 100% 100% 100% Second. Home Condos 0% 0% 0% 90% 90% 90% 10% 10% 10% 100% 100% 100% Residents 0% 0% 0% 65% 85% 80% 35% 15% 20% 100% 100% 100% Parking Day Visitors 0% 0% 0% 100% 100% 100% - -- — -- 100% 100% 100% Cumulative Phase I Hotel 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Branded Residences in Rental Pool 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Condos in Rental Pool 25% 65% 35% 65% 35% 55% 10% 0% 10% 100% 100% 100% Second Home Condos 25% 50% 35% 65% 40% 55% 10% 10% 10% 100% 100% 100% Residents 10% 35% 10%. 55% 50% 70% 35% 15% 20% 100% 100% 100% Parking Day Visitors 50% 100% 50% 50% 0% 50% -- -- -- 100% 100% 100% Phase 18 II Hotel 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Branded Residences in Rental Pool 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Condos in Rental Pool 25% 65% 35% 65% 35% 55% 10% 0% 10% 100% 100% 100% Second Home Condos 25% 50% 35% 65% 40% 55% 10% 10% 10% 100% 100% 100% Residents 10% 35% 10% 55% 50% 70% 35% 15% 20% 100% 100% 100% Parking Day Visr om 50% 100% 50% 50% 0% 50% -- -- — 100% 100% 100% Source. Economic & Planning Systems Economic & Planning Systems 9 0/ 26 November 9, 2010 11/16/2010 4 -4 -9 DRAFT Table 4 Ever Vail VisitorlResident Spending in Project Spending In Ever Vail by Phase Cumulative Spending In Ever Vail Percent Expenditures Percent Expenditures Description Retail Con, F &B Retail Con, F &B Total Retail Con, F &B Retail Con, F &B Total Phase I Hotel 25% 75% 40% $469,000 $235,000 $1,251,000 $1,955,000 25% 75% 40% $469,000 $235,000 $1,251,000 $1,955,000 Branded Residences in Rental Pool 25% 75% 40% 295,000 443,000 590,000 1,328,000 25% 75% 40% 295,000 443,000 590,000 1,328,000 Condos in Rental Pool 25% 65% 35% 303,000 393,000 282,000 978,000 25% 65% 35% 303,000 393,000 282,000 978,000 Second Home Condos 25% 50% 35% 113,000 225,000 105,000 443,000 25% 50% 35% 113,000 225,000 105,000 443,000 Residents 10% 35% 10% 29,000 66,000 9,000 104,000 10% 35% 10% 29,000 66,000 9,000 104,000 Parking Day Visitors 50% 100% 50% 122 000 75 000 112 000 30y000 50% 100% 50% 122 000 75 000 112 000 30y000 Totals $1,331,000 $1,437,000 $2,349,000 $5,117,000 $1,331,000 $1,437,000 $2,349,000 $5,117,000 Phase II Hotel -- -- - -- - -- - -- -- $0 25% 75% 40% $469,000 $235,000 $1,251,000 $1,955,000 Branded Residences in Rental Pool - -- - -- - -- -- -- -- 0 25% 75% 40% 295,000 443,000 590,000 1,328,000 Condos in Rental Pool 0% 0% 0% 0 0 0 0 25% 65% 35% 588,000 764,000 549,000 1,901,000 Second Home Condos 0% 0% 0% 0 0 0 0 25% 50% 35% 194,000 388,000 181,000 763,000 Residents 0% 0% 0% 0 0 0 0 10% 35% 10% 67,000 153,000 20,000 240,000 Parking Day Visitors 0% 0% 0% 0 0 0 0 50% 100% 50% 244 000 150 000 225 000 61y000 Totals $0 $0 $0 $0 $1,857,000 $2,133,000 $2,816,000 $6,806,000 Source: Economic & Planning Systems Economic & Planning Systems 10 of 26 November 9, 2010 11/16/2010 4 -4 -10 DRAFT Table 5 Ever Vail Visitor /Resident Spending IN VAIL, Outside Project Spent Elsewhere in Vail - by Phase Spent Elsewhere in Vail - Cumulative Percent Expenditures Percent Expenditures Description Retail Conv. F &B Retail Conv. F &B Total Retail Conv. F &B Retail Conv. F &B Total Phasel Hotel 65% 25% 50% $1,219,000 $78,000 $1,564,000 $2,861,000 65% 25% 50% $1,219,000 $78,000 $1,564,000 $2,861,000 Branded Residences in Rental Pool 65% 25% 50% 767,000 148,000 738,000 1,653,000 65% 25% 50% 767,000 148,000 738,000 1,653,000 Condos in Rental Pool 65% 35% 55% 787,000 212,000 444,000 1,443,000 65% 35% 55% 787,000 212,000 444,000 1,443,000 Second Home Condos 65% 40% 55% 293,000 180,000 165,000 638,000 65% 40% 55% 293,000 180,000 165,000 638,000 Residents 55% 50% 70% 159,000 95,000 60,000 314,000 55% 50% 70% 159,000 95,000 60,000 314,000 Parking Day Visitors 50% 0% 50% 122,000 0 112.000 234,000 50% 0% 50% 122,000 0 112,000 234.000 Totals $3,347,000 $713,000 $3,083,000 $7,143,000 $3,347,000 $713,000 $3,083,000 $7,143,000 Phase 11 Hotel - -- - -- - -- - -- - -- - -- $0 65% 25% 50% $1,219,000 $78,000 $1,564,000 $2,861,000 Branded Residences in Rental Pool - -- - -- -- -- -- - -- 0 65% 25% 50% 767,000 148,000 738,000 1,653,000 Condos in Rental Pool 90% 100% 90% 1,028,000 571,000 685,000 2,284,000 65% 35% 55% 1,529,000 412,000 862,000 2,803,000 Second Home Condos 90% 90% 90% 293,000 293,000 196,000 782,000 65% 40% 55% 504,000 310,000 285,000 1,099,000 Residents 65% 85% 80% 245,000 210,000 89,000 544,000 55% 50% 70% 366,000 218,000 137,000 721,000 Parking Day Visitors 100% 100% 100% 244.000 75 000 225.000 544,000 50% 0% 50% 244.000 0 225,000 469,000 Totals $1,810,000 $1,149,000 $1,195,000 $4,154,000 $4,629,000 $1,166,000 $3,811,000 $9,606,000 Source: Economic & Planning Systems Economic & Planning Systems 11 of 26 November 9, 2010 I1 /lb /2010 4 -4 -11 DRAFT Table 6 Ever Vail Spending Leakage - Cumulative Spending Leakage - Cumulative Percent Expenditures Description Retail Conv. F &B Retail Conv. F &B Total Phase[ Hotel 10% 0% 10% $188,000 $0 $313,000 $501,000 Branded Residences in Rental Pool 10% 0% 10% 118,000 0 148,000 266,000 Condos in Rental Pool 10% 0% 10% 121,000 0 81,000 202,000 Second Home Condos 10% 10% 10% 45,000 45,000 30,000 120,000 Residents 35% 15% 20% 101.000 28 000 17 000 146.000 Totals $573,000 $73,000 $589,000 $1,235,000 Phase II Hotel -- - -- - -- - -- -- - -- $0 Branded Residences in Rental Pool - -- - -- - -- - -- - -- - -- 0 Condos in Rental Pool 10% 0% 10% 114,000 0 76,000 190,000 Second Home Condos 10% 10% 10% 33,000 33,000 22,000 88,000 Residents 35% 15% 20% 132.000 37 000 22 000 191.000 Totals $279,000 $70,000 $120,000 $469,000 Phases I & II Hotel 10% 0% 10% $188,000 $0 $313,000 $501,000 Branded Residences in Rental Pool 10% 0% 10% 118,000 0 148,000 266,000 Condos in Rental Pool 10% 0% 10% 235,000 0 157,000 392,000 Second Home Condos 10% 10% 10% 78,000 78,000 52,000 208,000 Residents 35% 15% 20% 233,000 65 000 39 000 337,000 Totals $852,000 $143,000 $709,000 $1,704,000 Source: Economic & Planning Systems n-1 au1 -1 v eis1Imoiz11 Sa1 112111 .wsls�x�ea Economic & Planning Systems 12 of 26 November 9, 2010 11/16/2010 4 -4 -12 DRAFT Table 7 Net New Retail Sales Estimate for Sales Tax Calculation - Town Wide Ever Vail Visitor /Resident, Ever Vail Visitor, Parking, and Day Visitor Spending and Resident Spending, Total Town -Wide On -Site Other Vail Locations Net New Sales By Phase Phase I Restaurant $2,349,000 $3,083,000 $5,432,000 Retail $1,331,000 $3,347,000 $4,678,000 Grocer /Conv. $1.437.000 $713,000 $2.150.000 Total $5,117,000 $7,143,000 $12,260,000 Phase 11 Restaurant $0 $1,195,000 $1,195,000 Retail $0 $1,810,000 $1,810,000 Grocer /Conv. Lo $1.149,000 $1.149.000 Total $0 $4,154,000 $4,154,000 Cumulative Phase I Restaurant $2,349,000 $3,083,000 $5,432,000 Retail $1,331,000 $3,347,000 $4,678,000 Grocer /Conv. $1.437.000 $713,000 $2.150.000 Total $5,117,000 $7,143,000 $12,260,000 Phases I & 11 Restaurant $2,816,000 $3,811,000 $6,627,000 Retail $1,857,000 $4,629,000 $6,486,000 Grocer /Conv. $2.133.000 $1,166,000 $3.299.000 Total $6,806,000 $9,606,000 $16,412,000 Source: Economic & Planning Systems H 121112 ­, I1F.i r 1- 1,iRIll2 veeia, 1a1111 o seia, Economic & Planning Systems 13 of 26 November 9, 2010 I IB 'ulu 4 -4 -I DRAFT Table 8 Total Retail Spending and Sales Tax Store Type Phase I Phase II By Phase Net New Sales Restaurant $5,432,000 $1,195,000 Retail $4,678,000 $1,810,000 Grocer /Conv. $2,150,000 $1,149,00 0 Total $12,260,000 $4,154,000 Existing Sales Tax 4.0% Town Sales Tax [11 General Fund (60 %) . $ 21,540 $272,700 $99,696 Capital Fund (40 %) . $ 14,360 $181,800 $66,464 1.0% County Sales Tax Sales Tax $123,000 $42,000 15% to Town $18,000 $6,000 Cumulative Phase I Phase I & II Net New Sales Restaurant $5,432,000 $6,627,000 Retail $4,678,000 $6,486,000 Grocer /Conv. $2,150,000 $3,299,00 0 Total $12,260,000 $16,412,000 Existing Sales Tax 4.0% Town Sales Tax [11 General Fund (60 %) . $ 21,540 $272,700 $372,348 Capital Fund (40 %) . $ 14,360 $181,800 $248,232 1.0% County Sales Tax Sales Tax $123,000 $164,000 15% to Town $18,000 $25,000 [1] Sales tax currently collected from businesses - the Ever Vail site. Source'. Economic & Planning Systems Economic & Planning Systems 14 o126 November 2010 Il /16/2010 4 -4 -14 DRAFT Sales Flows and Erosion Estimates Economic & Planning Systems 15 of 26 November 9, 2010 1 1 16 '010 4 -1 -1, DRAFT Table 9 Ever Vail Retail Sales by Source Project Visitors/ Total Sales Residents, and Ritz Carlton Vail Village Lionshead West Vail In Ever Vail Description Parking Spending Spending [1] Erosion [2] Erosion [2] Erosion [2] Businesses By Phase Phase I Restaurant $2,349,000 $1,586,250 $1,204,000 $389,000 $0 $5,528,250 Retail $1,331,000 $1,395,900 $1,790,000 $2,243,000 $0 $6,759,900 Convenience Goods /Market $1,437,000 $1,586,250 LO L $1,938,000 $4,961,250 Total $5,117,000 $4,568,400 $2,994,000 $2,632,000 $1,938,000 $17,249,400 Cumulative Phase Restaurant $2,349,000 $1,586,250 $1,204,000 $389,000 $0 $5,528,250 Retail $1,331,000 $1,395,900 $1,790,000 $2,243,000 $0 $6,759,900 Convenience Goods/Market $1,437,000 $1,586,250 LO $ $1,938,000 $4,961,250 Total $5,117,000 $4,568,400 $2,994,000 $2,632,000 $1,938,000 $17,249,400 Phase I & II Restaurant $2,816,000 $1,586,250 $1,204,000 $389,000 $0 $5,995,250 Retail $1,857,000 $1,395,900 $1,790,000 $2,243,000 $0 $7,285,900 Convenience Goods/Market $2,133 000 $1,586,250 $ L $1,938,000 $5,657,250 Total $6,806,000 $4,568,400 $2,994,000 $2,632,000 $1,938,000 $18,938,400 Percent of Ever Vail Sales Restaurant 47% 26% 20% 6% 0% 100% Retail 25% 19% 25% 31% 0% 100% Convenience Goods/Market 38% 28% 0% 0% 34% 100% Total 36% 24% 16% 14% 10% 100% [1] See tables 10 and 11. [2] See Table 12 for erosion estimates. Source: Economic & Planning Systems H 11112E —,11. 1 1IEV I. I. .1- 111 -0s2nw111.1— Eiw,., Economic & Planning Systems 16 of 26 November 9, 2010 11/16/2010 4 -4 -16 DRAFT Table 10 Ritz Carlton Spending Estimate Pers./ Ann. Visitor $IPers.IDay Spending Potential Description Units Unit Occupancy Days Retail Conv. F &B Total Retail Conv. F &B Total x 365 Condo 71 3 50% 38,900 $60 $30 $75 $165 $2,334,000 $1,167,000 $2,917,500 $6,418,500 Fractional 45 3.5 55% 31600 $60 $30 $75 $165 $1.896.000 $948,000 $2.370.000 $5.214.000 Total 116 70,500 $4,230,000 $2,115,000 $5,287,500 $11,632,500 Source: Economic & Planning Systems HHOO, ­i. salsa, Mean, -0s2oaobno-w� Economic & Planning Systems 17 of 26 November 9, 2010 I1 /lb /2010 4 -4 -17 DRAFT Table 11 Ritz Carlton Spending in Ever Vail % Spent in Ever Vail $ Spent in Ever Vail Description Retail Conv. F &B Retail Conv. F &B Total Condo 33% 75% 30% $770,220 $875,250 $875,250 $2,520,720 Fractional 33% 75% 30% $625,680 $711,000 $711,000 $2.047.680 Total $1,395,900 $1,586,250 $1,586,250 $4,568,400 Source: Economic & Planning Systems HHOO, ­i. SI-- 11 112111 Economic & Planning Systems 18 of 26 November 9, 2010 I1 /lb /2010 4 -4 -18 DRAFT Table 12 Potential Sales Erosion or Sales Transfers as a Percentage of Existing Vail Retail Sales Vail Village Lionshead Village West Vail % of Existing % of Existing % of Existing Potential Erosion Description 2009 Sales Sales $ Erosion 2009 Sales Sales $ Erosion 2009 Sales Sales $ Erosion to Ever Vail A By Phase Phase Restaurant $60,218,000 2.0% $1,204,000 $2,994,000 13.0% $389,000 $16,243,000 0.0% $0 $1,593,000 Retail $89,484,000 2.0% $1,790,000 $28,037,000 8.0% $2,243,000 $16,798,000 0.0% $0 $4,033,000 Convenience Goods $2.998.000 0.0% _ $1.758.000 0.0% _ $38.766.000 5.0% $1.938.000 $1.938.000 Total $152,700,000 $2,994,000 $32,789,000 $2,632,000 $71,807,000 $1,938,000 $7,564,000 Phase II Restaurant $60,218,000 0.0% $0 $2,994,000 0.0% $0 $16,243,000 0.0% $0 $0 Retail $89,484,000 0.0% $0 $28,037,000 0.0% $0 $16,798,000 0.0% $0 $0 Convenience Goods $2.998.000 0.0% §0 $1.758.000 0.0% §0 $38.766.000 0.0% 0 0 Total $152,700,000 $0 $32,789,000 $0 $71,807,000 $0 $0 Phase Ill (Buildout) Restaurant 0.0% $0 0.0% $0 0.0% $0 $0 Retail 0.0% $0 0.0% $0 0.0% $0 $0 Convenience Goods 0.0% ,U0 0.0% -L0 0.0% 5 0 KO Total $0 $0 $0 $0 Cumulative Phase 1 Restaurant $60,218,000 2.0% $1,204,000 $2,994,000 13.0% $389,000 $16,243,000 0.0% $0 $1,593,000 Retail $89,484,000 2.0% $1,790,000 $28,037,000 8.0% $2,243,000 $16,798,000 0.0% $0 $4,033,000 Convenience Goods $2.998.000 0.0% §0 $1.758.000 0.0% §0 $38.766.000 5.0% $1.938.000 $1.938.000 Total $152,700,000 $2,994,000 $32,789,000 $2,632,000 $71,807,000 $1,938,000 $7,564,000 Phase II Restaurant $60,218,000 2.0% $1,204,000 $2,994,000. 13.0% $389,000 $16,243,000 0.0% $0 $1,593,000 Retail $89,484,000 2.0% $1,790,000 $28,037,000 8.0% $2,243,000 $16,798,000 0.0% $0 $4,033,000 Convenience Goods $2.998.000 0.0% §0 $1.758.000 0.0% 0 $38.766.000 5.0% $1.938.000 $1.938.000 Total $152,700,000 $2,994,000 $32,789,000 $2,632,000 $71,607,000 $1,938,000 $7,564,000 [1] Assumetl to be 10% of regdretl seles. Source. Economic & Planning Systems Economic & Planning Systems 19 of26 November 9, 2010 11/16/2010 4 -4 -19 DRAFT ■ Appendix Tables EverVail Fiscal Impact Analysis August 16, 2010 Economic & Planning Systems 20 of 26 November 9, 2010 11/16/2010 4 -4 -20 DRAFT Table Al Estimated Day Visitors Spending Description Factor Phase I Phase II Public and Retail Parking Spaces 200 200 Avg. People per Vehicle 2.6 2.6 % Utilization 50% 50% Ski Season Days 144 144 Parking /Day Visitor Days 37,440 37,440 Retail $ /Day /Person $13 $13 F &B $ /Day /Person $16 16 Total [1] $29 $29 F &B Spending - Convenience Goods 25% $149,750 $149,750 F &B Spending - Bars /Restaurants 75% $449,250 $449,250 Total F &B Spending 100% $599,000 $599,000 Annual Retail Spending $487,000 $487,000 Annual Convenience Goods Spending $149,750 $149,750 Annual Bar /Restaurant Spending $449,250 $449,250 Total Annual Spending $1,086,000 $1,086,000 Net New Day Visitors Reduction Annual Retail Spending 50% $243,500 $243,500 Annual Convenience Goods Spending 50% $74,875 $74,875 Annual Bar /Restaurant Spending 50 $224,625 $224,625 Total Net New Spending $543,000 $543,000 Cumulative Spending $543,000 $1,086,000 [11 Town of Vail Parking Survey. F &B category is allocated below into retail food and beverage and eatint Source: Town of Vail Parking Survey, 2009 (RRC Associates), Economic & Planning Systems n-1 au 1 -1 v eis1l21o1111 Sa1sTax Mmai ll 112111 1, visit Sw Ira Economic & Planning Systems 21 of 26 November 9, 2010 11/16/2010 4 -4 -21 DRAFT Table A2 Project Resident Total Income Description Phase I Phase II Deed Restricted For -Sale Households 12 7 Household Income [1] $92,000 $92,000 Total Personal Income (TPI) $1,104,000 $644,000 Deed Restricted Rental Households [2] 8 26 Household Income $51,200 $51,200 Total Personal Income (TPI) $410,000 $1,331,000 Total Income $1,514,000 $1.975.000 [1] Claritas, 2009 [2] 80% of AMI, 2 person household Source: Claritas; Economic & Planning Systems H1 812 —r -1 Fl-1 An 1ysis\MOde [20812 -FV Sales Tex M -111 -05 010.x1s]A2-R d,nt TPI Economic & Planning Systems 22 of 26 November 9, 2010 I1 /lb /2010 4 -4 -22 DRAFT Table A3 Permanent Resident Retail Expenditure Potential %of Expenditure Potential Store Category TPI Phase Phase 11 Total Personal Income $1,514,000 $1,975,000 Convenience Goods Supermarkets and Specialty Grocery Stores 6.2% $94,000 $123,000 Convenience Stores, Health, Beer, Wine & Liquor 6.3% $95,000 $124,000 Total Convenience Goods 12.5% $189,000 $247,000 Apparel and Sporting Goods 3.6% $55,000 $72,000 Other General Merchandise and Shoppers Goods 15.4% $234,000 $305,000 Food and Beverage 5.6 % $85,000 $111,000 Total Retail Expenditures /Sales 37.2% $563,000 $735,000 [1] Estimated by comparing expenditures to actual store sales and sales tax data. Source: US Census of Retail Trade: Economic & Planning Systems H-12 Ever Vell Fl-1 A- 1ysls\MOd- [20812 -EV Sales Tax V-1 11 -05- 2010.x) ]—R- Spentling Economic & Planning Systems 23 of 26 November 9, 2010 11/16/2010 4 -4 -23 DRAFT Table A4 Vail Village Retail Sales 2006 2007 2008 2009 Restaurants & Bars $64,069,000 $69,088,000 $67,237,000 $60,218,000 Apparel and Sporting Goods 67,723,000 70,024,000 62,743,000 53,115,000 Gifts, Galleries, Jewelry, and Other 52,426,000 55,285,000 45,420,000 36,369,000 Groceries, Beer/Wine /Liquor 3,904,000 3,461,000 3,083,000 2,998,000 Total $188,122,000 $197,858,000 $178,483,000 $152,700,000 Source: Town of Vail; Economic & Planning Systems H-121wau1— M—i- 11[211— usaiaswslvau 111 s1m Economic & Planning Systems 24 of 26 November 9, 2010 I1 /lb /2010 4 -4 -24 DRAFT Table A5 Lionshead Retail Sales 2006 2007 2008 2009 Restaurants & Bars $2,045,000 $2,283,000 $3,619,000 $2,994,000 Apparel and Sporting Goods 17,625,000 18,529,000 24,725,000 24,053,000 Gifts, Galleries, Jewelry, and Other 7,092,000 6,949,000 5,481,000 3,984,000 Groceries, Beer/Wine /Liquor 717,000 896,000 1,750,000 1,758,000 Total $27,479,000 $28,657,000 $35,575,000 $32,789,000 Source: Town of Vail; Economic & Planning Systems H-121waur5.iM­1 -11[211— usaiaswslvau 111 SIm Economic & Planning Systems 25 of 26 November 9, 2010 I1 /lb /2010 4 -4 -25 DRAFT Table A6 West Vail, Cascade, and Other Areas Sales 2006 2007 2008 2009 Restaurants & Bars $22,806,000 $21,622,000 $19,380,000 $16,243,000 Apparel and Sporting Goods 5,383,000 5,546,000 4,890,000 4,875,000 Gifts, Galleries, Jewelry, and Oth 14,130,000 16,357,000 16,325,000 11,923,000 Groceries, Beer/Wine /Liquor 39,369,000 41,052,000 42202,000 38,766,000 Total $81,688,000 $84,577,000 $82,797,000 $71,807,000 Source: Town of Vail; Economic & Planning Systems —0812 Eves VO F—al A lyty ! \D—I20812- recall seles.xls]Vell Vlllege Sum Economic & Planning Systems 26 of 26 November 9, 2010 I1 /lb /2010 4 -4 -26 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: First reading of Ordinance No. 18, Series 2010, an Ordinance making supplemental appropriations to the Town of Vail General Fund, Capital Projects Fund, Real Estate Transfer Tax Fund and the Debt Service Fund of the 2010 Budget for the Town of Vail, Colorado; and authorizing the expenditures of said appropriations as set forth herein; and setting forth details in regard thereto. PRESENTER(S): Kathleen Halloran ACTION REQUESTED OF COUNCIL: Approve or approve with amendments the first reading of Ordinance No. 18, Series 2010. BACKGROUND: To be provided in a separate memo. STAFF RECOMMENDATION: Staff recommends that the Town Council approves or approves with amendments Ordinance No. 18, Series 2010, upon first reading. 11/16/2010 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: Second reading of the 2011 Budget Ordinance No. 17, Series 2010 PRESENTER(S): Kathleen Halloran ACTION REQUESTED OF COUNCIL: Approve or approve with amendments second reading of the 2011 Budget Ordinance No. 17, Series 2010 BACKGROUND: To be provided in a separate memo STAFF RECOMMENDATION: Approve or approve with amendments second reading of the 2011 Budget Ordinance No. 17, Series 2010 ATTACHMENTS: TM 2011 Bud 2nd 11/16/2010 MEMORANDUM To: Town Council From: Stan Zemler, Judy Camp, Kathleen Halloran Date: November 11, 2010 Subject: 2011 Proposed Budget The following adjustments have been made since the last review of the 2011 proposed budget: 1. $20,000 was added to 2011 expenditures for the Marketing Fund to increase funding of the 2011 Vail Jazz Festival from $30,600 granted in Council contributions to a total of $50,600. The Marketing Fund is separate from the General Fund to track business license fee collections, with spending restricted to marketing Vail (including special events). 2. During Council discussion November 2n staff was directed to research the possibility of funding $75,000 for the Pro - Challenge Cycling Race from savings anticipated in 2010. Staff believes there will be enough surplus in the 2010 General Fund to cover this expenditure, and will annotate the budget documents to set aside these funds for appropriation in 2011. This removes the allocation of $75,000 to the bike race from the Commission on Special Events annual budget totaling approximately $836,000. 3. During Council discussion November 2n staff was directed to research the possibility of funding $95,000 for the relocation of the Morales "Granite Amphitheater" artwork to Ford Park. The cost to repair, redesign and relocate the artwork totals an estimated $260,100. The Morales project currently has a budget of $160,900 in RETT, and a private donation of $5,000, leaving $95,000 unfunded. Art in Public Places has a remaining 2010 budget of approximately $190,000 for general projects. These dollars carry forward each year for the purchase of art and the AIPP Board recommends utilizing these funds for new future projects. Staff is currently projecting a surplus for the 2010 RETT Fund, including $1.8 million in revenue beyond budget for collections this year. The 2011 budget ordinance will only be impacted by the $20,000 increase to the Marketing Fund (item #1 above). By using surplus in 2010 to fund #2 and #3, there will not be an appropriation to the proposed 2011 budget until the first supplemental process in 2011. Staff will annotate the budget documents to ensure funding per Council's request. A 11/16/2010 6 -1 -1 TOWN OF VAITL 2011 BUDGET Second Reading of Ordinance No. 17, Series 2010 November 16, 2010 11,16,2010 6 -1 -2 Town of Vail Proposed 2011 Budget Table of Contents 2011 Budget Highlights 1 Major Revenue Analysis 10 Summary of Changes in Personnel 11 Ten -Year Summary of Budgeted Positions by Department 12 Employee Benefits Summary 14 This report shows the list of employee benefits by percentage and costs. General Fund Revenue and Expenditures 15 This schedule shows the major revenue and expenditures by category in the General Fund Summary of Operating Expense 17 This schedule shows all operating expenditures, no matter what Fund they are paid from Contributions and Special Events 18 Capital Projects Fund Revenue and Expenditures 26 This schedule shows revenue by type and expenditures by project in the Capital Projects Fund for 2009, 2010 and proposed 2011. Real Estate Transfer Tax Fund Revenue and Expenditures 28 This schedule shows revenue by type and expenditures by project in the RETT Fund for 2009, 2010 and proposed 2011. Unfunded Capital Projects 30 Marketing Fund Revenue and Expenditures 31 Debt Services Fund Revenue and Expenditures 31 Heavy Equipment Fund Revenue and Expenditures 32 Dispatch Services Fund Revenue and Expenditures 33 Conference Center Fund Revenue and Expenditures 34 Health Insurance Fund Revenue and Expenditures 34 11/16 /2010 6 -1 -3 TOWN OF VAIL 2011 BUDGET PROPOSAL GENERAL AND RELATED FUNDS The Town of Vail 2011 budget proposal presented in this document reflects the town's vision to be the premier mountain resort community in a fiscally responsible manner. This document has been updated to reflect an increase in funding for the 2011 Vail Jazz Foundation of an additional $20,000 of Council contribution funded by the Marketing Fund (Business License Fees). All changes are highlighted in gray. Since 2008, the town has cut more than $2.4 million in operating expenditures (General Fund), and has added back nearly $1.4 million from increased services and operations of new facilities, resulting in a net reduction of nearly $1.0 million since that time. Also since 2008, 23.3 full time equivalents (FTEs) have been eliminated from the budget, although these cuts were offset by the addition of other positions as resources shifted from a focus on redevelopment to a focus on core services. With these additions, headcount is down in total by 10.25 FTEs from 2008. The overall expenditure reductions were necessary due to declining sales tax collections, construction fees and earnings on investments. While the 2011 proposed budget presents a surplus for the General Fund, the town will be challenged once again in 2012 to operate within annual revenues due to estimated decreases in property tax collections. The Capital Projects Fund and RETT Fund have also made significant reductions to planned capital projects ($5.0 million of delays or eliminated projects just in 2011 since this time last year). Despite these challenges, the town has continued providing world -class service to the citizens and guest of Vail and has maintained strong reserves. REVENUE The town's 2011 budget is funded by a projected $45.5 million net revenue budget. Net revenues exclude inter -fund charges and transfers. 2011 projected revenues are 12% less than 2010 amended and a 5% increase from 2009. (See page 10 for Major Revenue Analysis). The below chart identifies the various sources of town revenue WHERE THE MONEY COMES FROM 2011 Proposed Net Revenue $45.5M Rert, Fnes & Earn ngs or Miscel aneous nvastments C urges for Services Trarspvrtation Sales Tax Centers 3701 11% I ntergover r n ental Revenue 8% Licenses and Permits % Rea Estate Trans - er Tax 10% Ski Lit Tax and Property and F - anch se Fees Use Tax Ownership Tax 9% 1% 11% 1 11/16 /2010 6 -1 -4 Sales Tax will produce approximately 37% of annual revenue for 2011. The $16.9 million of sales tax projected is flat with 2009 and slight increase from the current 2010 budget. Real Estate Transfer Tax collections of $4.7 million represent 10% of total annual revenues. Since 2004, we have separated RETT revenue into two categories: collections from major redevelopment projects (such as the Four Seasons, Ritz Carlton Residences, Solaris, etc.) and "base" collections, which represent all other real estate transactions. This separation allows for more accurate trending. "Base" collections are projected flat with 2009, and collections from major redevelopment are budgeted at an increase with the assumption that projects such as the Four Seasons, Ritz Carlton Residences and Solaris will sell 25% of units in 2011, at 80% of list price. Property and Ownership Tax of $5.1 million will generate 11 % of total revenues for 2011. The current base mil levy is 4.69 and constitutes 10% of the average taxpayer's property tax bill. The property tax projection is based on the August '10 report received from the County assessor. Parking revenue from the transportation centers is projected at $4.9 million for 2011, or 11% of total revenues. This projection was updated to reflect recent parking policy decisions, and is a 1.3% decrease from 2009. Intergovernmental revenue includes federal and state grants, county sales tax, county road and bridge tax, highway users' tax, cigarette tax and E911 Authority Board. For 2011, this revenue source represents $3.7 million, or 8% of total revenues for the town. Nearly half of this revenue stems from federal grants including $828,000 for the Matterhorn bridge reconstruction, $600,000 for buses, $104,000 for fire fighters from the SAFER grant, and $87,000 for a police officer from the COPS grant. Ski Lift Tax and Franchise Fees total $3.2 million and $1.1 million, respectively for 2011, representing 9% of the total annual revenue. EXPENDITURES The town's expenditure budget for 2011 is $59.7 million excluding inter -fund transfers and charges. This is a 6.7% decrease from the 2010 amended budget, mainly due to the timing of capital projects such as construction of the West Vail Fire Station and the LionsHead Transit Center. Included in this amount are capital projects that will be reimbursed from the Vail Reinvestment Authority (see Capital Projects section below). Fifty -seven percent of the expenditures are to provide municipal services and forty -three percent to fund capital improvements including debt service. 2 11/16/2010 6 -1 -5 Where The Money Goes 2011 Proposed Expenditures $59.7 M Debt Service 4% Capital Improvements 39% Municipal Services �— 57% Within municipal services, 65% of spending is related to staffing costs. These costs include salary expense, overtime, and benefits such as health insurance, disability coverage, worker's compensation, pension, life insurance, unemployment and Medicare. The town's operations are supported by 285 full time equivalent (FTE) positions in 2011, down from 300 at the beginning of 2009. Of these, 217 are full -time regular employees. Since 2008, 23 FTEs have been eliminated from the budget. These reductions are offset by the addition of other positions as resources have shifted from a focus on redevelopment to a focus on core services such as fire, dispatch, environmental sustainability and bus service. With these additions, headcount is down overall by 10.75 FTEs from 2008. 2011 headcount changes include the addition of two seasonal Fire residents and an increase in the number of resident shifts to staff the West Vail Fire Station (annual cost estimated at $86,000 as presented to Council September, 2009 during approval of the station's construction). Headcount reductions for 2011 include the elimination of 5.0 full -time positions, 2.0 fixed -term positions and 2 seasonal positions (1 FTE). Please refer to page 11 for a detailed explanation of FTE changes, and page 12 for a 10 year history of the town's FTE count. Employee benefits are projected at $5.6 million, representing 36.1% of base salary expense for 2011 (please refer to page 14 for a breakout of employee benefits). The largest single component of benefit cost is health insurance at 45 %, followed by pension contributions at 38 %. 3 1 1/16/2010 6 -1 -6 Benefits Casts Medicare Wellness Benefit 2011: $5.6M 4% 3% Pension Health Insurance 38% 45% Workers' Life, Disability, and Compensation Unemployment Insurance Insurance 4% 6% The town is self- insured and has managed rising benefit costs by increasing healthcare contributions paid by sharing costs with employees. $300,000 will be covered by the employees from significant changes to health plan design, including increases to employee -paid deductibles, co -pays and out of pocket maximums. Employee monthly premiums will rise at least 25 %. The town is also reviewing potential cost savings from changing medical networks and plans to use $150,000 of Health Insurance Fund reserves (these reserves grow from annual contributions by both employees and the town, with most of the current growth occurring between 2001 and 2008). The reserves are intended to protect the town from excessive claim activity (unanticipated) in one year, and current reserve levels are more than adequate to provide this protection. See page 34 for a detailed fund statement for the Health Insurance Fund. While the above narrative summarized the overall proposed town financial outlook for 2011, the following provides an explanation of budgetary assumptions for each fund: GENERAL FUND The General Fund supports the town's basic municipal operations. The attached General Fund proposed budget has a surplus of $482,194, which results in a fund balance of $20.2 million at the end of 2011, representing 70% of annual revenues. 35% was the Council directive in prior years as the minimum fund balance during redevelopment. REVENUE - $29,046,604 The General Fund's primary source of revenue is sales tax followed by property and ownership tax, parking, and lift tax. 4 11/16/2010 6 -1 -7 Sales Tax - $10,310,000 In this budget proposal, 61% of the town's 4% general sales tax is allocated to the General Fund. The remaining 39% is allocated to the Capital Projects Fund. While this split is the same percentage used on average over the last 10 years for budget purposes, the actual share of revenue has averaged 52/48 since 2000 and 50/50 since 2004. The "split" percentages change when sales tax collections do better than expected (excess revenue goes directly to the Capital Projects Fund) and the above averages include the impact of transfers of fund balance from the General Fund to the Capital Projects Fund. Since 2000, $8.2 million has been transferred into the Capital Projects Fund for both specific projects and to increase capital reserves. Please refer to page B (at the front of this packet) for more details on the historical data. Due to the proposed 61/39 split, approval of this budget will require an affirmative vote by five out of seven Council members (a super majority) because less than 50% of the sales tax revenue is going to the Capital Projects Fund. This is based on the town charter from 1973 when Council intended to earmark 50% of sales tax collections for capital projects, real estate acquisition and related debt service. Since that time, several revenue sources have been added to enhance the town's ability to fund capital projects such as Real Estate Transfer Tax, Construction Use Tax, the Vail Reinvestment Authority, Employee Housing Fee -in -Lieu and Federal grants. While staff is recommending a 61/39 split of sales tax collections, we will continue to implement the policy of allocating any revenues in excess of the original budget to the Capital Projects Fund, as has been done in years past. 2011 sales tax revenue is projected to be flat with the 2009, and a 1.8% increase from 2010 budget. Property Tax, Parking Revenue, Ski Lift Tax and Franchise Fees budgetary assumptions were discussed above, in the Revenue section. Licenses and Permit Fees - $732,200 The largest component of licenses and permits is construction permit fees, which includes building, mechanical, plumbing, and electrical permits. The 2011 budget for construction permits is projected with "base" transactions flat with 2009, and no activity anticipated from major redevelopment. EXPENDITURES - $28,564,410 Based on Council recommendations, salary expense includes a 2% performance -based merit pool and a bonus pool to be paid as a one -time reward to employees qualifying under bonus program requirements (currently being developed by Human Resources). Benefits expense represents 36.14% of salaries (39.98% for full -time employees). A summary of how benefits were budgeted for 2011 are specified above on page 4. Also, please refer to page 14 for a detailed breakout of employee benefits cost as a percentage of salary expense. The town's Human Resources department will present a comparison of the town's benefits to other municipalities on November 16 th . Departmental spending of $5.9 million ( "All Other Operating" on page 15) is $1.2 million less than 2008 spending (significant budget cuts began in 2009). This represents a 17% reduction in spending from 2008 levels despite an increase in services and the addition of new facilities. These services and facilities explain why 2011 proposed spending is more than 2009. They include new operational expenditures such as increased 5 11/16/2010 6 -1 -s snowmelt from streetscape near Solaris and the new LionsHead Transit Center, and utilities for new facilities including the West Vail Fire Station and Transit Center. 2011 expenditures were also increased from costs that are outside of departmental discretion such as continued support of special events, insurance premiums, bank charges, and treasurer fees from the County's collection of property tax. We have re- budgeted for Community Development planning projects (not an annual expenditure) such as the master planning of West Vail and the Chamonix area, a green building code and other zoning amendments. Other items such as cinders are budgeted at an average snowfall, which for 2011 is at a higher dollar amount than 2009 when the snowfall started much later. Council contributions (pages 18 -25) are included in this proposal so that Council can review them as a part of the entire budget and evaluate financial impact to the town. Of the $2.1 million in requests, $1.6 million was approved by Council on September 21st (a 1.4% increase from 2010). Changes from last year's contributions include funding for the Colorado Ski Museum ($42,000 cash and $9,000 rent forgiveness), Vail's 50 DVD ($10,000), an allocation of CSE funding ($75,000) to go toward the Quizno's Pro - Challenge cycling event, and a reduction in funding for the Eagle River Watershed Council to $50,000. Both the Ski Museum and Vail's 50 DVD received funds in 2010 from off -cycle requests. All other contribution requests were funded at similar levels as 2010. Heavy Equipment Operating charges increase only slightly in 2011 compared to 2010. Costs are charged back to departments based on their use of the vehicles and equipment. Replacement charges are proposed at an 18.7% ($125K) decrease from 2010 budget due to annual savings in the Heavy Equipment Fund from both fuel cost fluctuations and the delay of some vehicle replacements (see additional explanation in the Heavy Equipment Fund below on page 8). Dispatch Services charges total $537,827 for 2011 based on a three -year average usage by the town (31% of total 911 call volume). The 2011 charges are nearly flat with 2009, but a 3% increase from 2010 budget. The increase is not attributable to an increase in call volume, but rather based on a reduction in overall fees collected by the Dispatch Services Fund in 2010. CAPITAL PROJECTS FUND REVENUE - $8,702,500 Sales tax is a primary revenue source for capital projects. For 2011, $6,590,000 or 39% of the town's projected sales tax revenue is allocated to the Capital Projects Fund. Federal grant revenue of $1.4 million is included, with $828,000 for the Matterhorn Bridge reconstruction and $600,000 to be used to purchase buses. Use Tax collections are budgeted at $500,000, flat with the 2010 original budget. 2010 collections currently exceed the budgeted amount, however this includes activity from major redevelopment projects. No major projects are assumed for 2011. 6 11/16/2010 6 -1 -9 EXPENDITURES - $17,789,831 $8.5 million of the above will be reimbursed by the Vail Reinvestment Authority (VRA) for capital projects within the LionsHead TIF District such as the Welcome Center ($6.8M), surface parking at the Charter Bus lot ($900,000) and the Library remodel ($475,000). The VRA is also reimbursing the town for the annual capital maintenance of the LionsHead parking structure ($315,000). The town is utilizing the Capital Projects Fund to track these projects because the town's financial systems are better suited than the VRA's to provide internal controls over projects of this size and to facilitate recording the capital assets on the town's books. The money allocated to these capital projects tie directly to the proposed budget for the VRA. In addition to a debt service payment totaling $2.3 million, noteworthy projects for 2011 include: • Annual capital maintenance of town facilities, parking structures and streets totaling $2.1 M. • Neighborhood road reconstruction of $1.8M for Vail Valley Drive to correspond with a project to be completed by the Eagle River Water and Sanitation District. • Neighborhood bridge reconstruction of $1.OM for Matterhorn Bridge (mainly funded with federal grant of $828,000). • Replacement of 2 town buses with hybrid models ($1.2M). The Capital Projects fund is projected to have a fund balance of $5.2M at the end of 2011, not including unfunded projects. In May, 2010, Council prioritized the list of unfunded projects (page 30) along with possible methods of funding. Some of the potential revenue sources and funding mechanisms include Vail Reinvestment Authority tax increment financing (TIF) collections, a $4.3 million commitment from Vail Resorts for net new parking, new debt financing, potential use of Conference Center Funds, changing the split sales tax, and potential transfer of General Fund balance. REAL ESTATE TRANSFER TAX (RETT) FUND REVENUE - $4,840,279 The primary revenue source for this fund is the 1% real estate transfer tax, accounting for $4,670,000 in projected revenue for 2011. Base transactions are budgeted flat compared to 2009 however preliminary sales from the Four Seasons, Ritz Carlton Residences and Solaris contribute to the overall increase. With all three projects scheduled for completion in 2010, budgeted revenue for 2011 is based on 25% of units selling, at 80% of current list price. EXPENDITURES - $9,429,594 Use of the RETT Fund is restricted by ordinance to parks, recreation, open space, and environmental sustainability. RETT provides funding for both operating and capital expenditures within those categories. Total operating expense of $2.2M for 2011 includes: • Annual Park and Landscape maintenance ($1.3M). • Environmental Sustainability programs ($250K). 7 11/16/2010 6 -1 -10 • Continuation of Forest Health projects ($145K, reduced from prior years' budgets of $265K). Noteworthy capital projects for 2011 include: • Frontage Road bike lanes of $2.3M. • Implementation of Ford Park master plan, including parking options, turn lanes, etc. ($2.1 M). • Reconstruction of the Red Sandstone Park and Playground ($439K). • Improvements to VRD- managed assets totaling $1.2M. Significant projects include improvements to the golf clubhouse, tennis court repairs, and Dobson Ice Arena capital maintenance. The RETT fund is projected to have a fund balance of $6.9 million by the end of 2011. VAIL MARKETING FUND Business license fees provide the revenue for this fund, which is restricted to marketing Vail. Revenue is expected to be flat with 2009. Expenditures for marketing through the Commission on Special Events (CSE) are budgeted flat at $280,000. On November 2nd Council increased expenditures by $20,000 to increase funding for the 2011 Vail Jazz Festival. DEBT SERVICE FUND This fund is used to manage principal and interest on the town's outstanding debt. Funds are transferred from the Capital Projects Fund to meet annual debt service requirements and to cover the next upcoming principal and interest payments on the 2002B and 2008 bonds. All debt (principal balance of $4.3M at 12/31/10) is scheduled to be repaid by the end of 2012. HEAVY EQUIPMENT FUND This is an internal services fund that manages the maintenance and repair of town vehicles and equipment and the purchase of replacement vehicles other than buses and fire trucks. Costs are charged back to departments based on their use of the vehicles and equipment. Due to annual savings from both fuel cost fluctuations and the delay of some vehicle replacements, the fund balance will grow to an estimated $2.1 M by the end of 2010. As such, the annual charge back to the departments was decreased for 2011 which will reduce the General Fund charges and continue to provide the necessary funding for replacement as is the intent of the fund. DISPATCH SERVICES FUND This is an enterprise fund, e.g., more than half of its revenue is from sources outside of the town, managing emergency communications for all of Eagle County. The E911 Board currently funds seven dispatcher positions, two supervisor positions and a systems engineer. In 2011, reserves will be used to cover a significant capital expenditure ($800K) for the replacement of the Dispatch Center's radio communication 8 11/16/2010 6 -1 -u equipment. These reserves are the result of many years of contributions from all user agencies, including the Town of Vail. CONFERENCE CENTER FUND This fund was established in 2003 to account for a 1.5% public accommodations tax and a .5% sales tax imposed by election for the purpose of building and operating a conference center in the town. These taxes were rescinded by election in November of 2005. An election is required to release Conference Center funds for any purpose. The fund balance is projected to be $9.4M by the end of 2011. HEALTH INSURANCE FUND This internal services fund manages the costs of providing health and short -term disability insurance to employees. Net costs are charged to departments as employee benefits. Since the town is self- insured on these items, a sufficient fund balance is maintained to absorb extraordinary claims experience. Claims over $75,000 per person are covered by an indemnity "stop loss" insurance product. Although increasing healthcare costs are shared with employees, staff has recommended use of $150,000 of fund balance to help offset the anticipated increase in medical claims for 2011. This Fund is projected to have a fund balance of $921,165 by the end of 2011. 9 11/16/2010 6- 1 - 12 Major Revenue Analysis 2011 Budget 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Actual Actual Actual Actual Actual Actual Actual Actual Amended Proposed Comments vs.'09 actual % vs. 2010 General Sales Tax 15,264,581 14,734,552 15,581,575 16,791,157 17,986,796 18,913,138 19,631,366 16,913,338 16,600,000 16,900,000 2011 flat with 2009 actual; 2% per year increase thereafter -3.0% -3.5% 5.7% 7.8% 7.1% 5.2% 38 - 13:8 9 % - 1.9°% 1.8% RETT Tax 2,943,338 3,270,723 4,850,152 6,206,054 6,239,744 6,536,118 9,091,917 2,513,481 4,283,000 4,670,000 Base sales flat with 2009 through 2015; Over 5 -year period, major -2.8% 11.1% 48.3% 28.0% 0.5% 4.7% 39.1% -72.4% 70.4% 9.0% redevelopment sales assume only 2/3 of new units sell for Solaris, Four Seasons & Ritz at 80% of list price; then 2 units per year re -sales Parking Revenue 2,548,806 2,993,378 3,285,932 3,651,537 4,007,334 4,514,$92 4,705,985 4,975,795 4,932,744 4,911,500 Flat with 2009 through 2012, then 3% increase In 2013 and 2015 10.2% 17.4% 9.8% 11.1% 9.7% 12.7% 4.2°% 5.7% -0.9% -0.4% Property Tax Revenue 2,630,105 2,667,154 2,466,313 2,468,978 2,750,693 2,819,823 4,092.,056 4,309,063 4,830,647 4,875,000 2011 flat with 2010; then 20% decrease in values from prior assessment: 8.7% 1.4% -7.5./ 0.1% 11.4% 25% 45.1% 5.3% 12.1% 0.9°% additional revenue from completion of major redevelopment projects Lift Tax Revenue 2,344,921 2,273,055 2,496,162 2,777,698 2,975,097 3,039,619 3,277,703 3,048,011 3,115,000 3,193,000 2011 - 20142.5% per year increase 9.3% -3.1% 9.8% 11.3% 7.1% 2.2°% 7.8% -7.0% 2.2°% 2.5% Construction Fees 854,377 1,020,917 1,608,461 2,466,054 3,481,989 4,992,752 3,799,444 1,341,731 1,023,250 673,250 Reduced based on slowdown of redevelopment activity; No major 8.3% 19.5% 57.6% 53.3% 41.2°% 43.4% - 23.9°% -64.7% -23.7% - 34.2°% redevelopment projects assumed after 2010 Construction Use Tax - - - - 608,483 713,582 600,000 500,000 Reduced based on slowdown of redevelopment activity; No major N/A 17.3% - 15.9°% -16.7% redevelopment projects assumed after 2009; 3% annual increase after 2011 Other Taxes 492,166 1,265,084 1,254,005 1,251,928 1,367,139 1,399,739 1,644,975 1,545,535 1,485,200 1,324,800 County sales tax, Road & Bridge, Hwy users revenue, etc. 3.1% 157.0°% -0.9% -0.2°% 9.2°% 2.4°% 17.5% -6.0°% -3.9°% -10.8% Reduction in 2011 Road & Bridge based on 5 -year average All other items flat with 2009 Federal / County Grants 217,835 89,700 1,412,098 19,500 1,739,052 59,542 - 203,765 5,250,824 1,619,000 2010: $5M for transit center; SAFER grant $117K, COPS grant $82K -0.8% -58.8% 1474.2% N/A N/A N/A N/A N/A 2476.9°% -69.2% and $28.5K police LiveScan software; 2011: buses $600K, bridge reconstruction $828K; SAFER (thou 2013) and COPS (thou 2012) grants Earnings on Investments 163,460 311,966 446,430 1,112,872 2,133,315 2,624,092 1,841,335 460,234 240,200 336,870 2009 based on .5% return on fund balances; 2010 flat but reduced fund 90.9% 43.1% 149.3 91.7% 23.0% - 29.8 - 75.0 -47.8% 40.2°% balances; 2011 based on 1% return; 2012 -2015 1.5% annual return Rental Income 499,616 616,412 803,939 780,214 827,280 897,958 949,961 912,090 882,796 869,816 2009 increase due to additional employee units to rent; 2010 flat with 2009 23.4% 30.4% -3.0% 6.0% 8.5% 5.8% -4.0%. -3.2% -15% 2011 scheduled for 3% increase E911 and Interagency Dispatch 918,260 1,037,223 1,088,068 1,165,164 1,337,583 1,528,608 1,657,622 1,904,572 1,916,339 1,960,258 Incl. adding 1 FTE mid -year 2009 and 1 more FTE 2010 (funded by E911) 9.0% 13.0°% 4.9°% 7.1% 14.8% 14.3% 8.4% 14.9% 0.6°% 28% Estimated annual increase of 3% All Other Revenue 6,046,862 8,021,669 8,764,750 10,250,560 5,317,935 7,519,435 6,717,851 4,511,344 6,508,289 3,653,944 2005 included $410 Conference Center collections & $2M project mimb. - 17.9°% 32.7% 9.3% 17.0% -48.1% 41.4% -10.7% -32.8% 44.3% - 43.9°% 2007 included $1.21M recreation ammenities and $1.3M projectoeimb. 2008 included over $1 M of project reimbursement and $500K in Employee Total Revenue 3 3 8,30 1, 83 3 4 48,941,716 50,1 54, 5 8, 0 18,6 98 4 3,352,542 51, 4 5,4 8 7,43 8 Housing Fee -in -Lieu %compared to Prior year -3.0/ 11.8% 15.0% 11.1% 2.5 9.3% 5.8°% - 25.3°% 19.2°% -12.0 2009 included $709K of project reimbursement and $816K Areas duplex sale 11/16/2010 -16- 6-1-13 Town of Vail 2011 Budget Summary of Changes in Personnel From 2010 Original Budget to 2011 Budget 2011 Changes Comments Full -time Regular Positions Town Officials (1.00) Eliminated vacant Executive Assistant position Town Officials 0.20 Increased work schedule for Admin to help cover elimination above Public Relations (1.00) Eliminated vacant Community Information Assistant position Community Development (1.00) Eliminated vacant Planner position Police (0.75) Eliminated vacant Records position Police (1.00) Elminated CEO position Fire (0.25) Eliminated vacant administrative position (4.80) Fixed Term / Externally Funded Public Works (1.00) Eliminated Construction Inspector position Public Works (0.50) Eliminated seasonal Streetscape Inspector position Community Development (0.50) Eliminated Administrative Assistant position (2.00) Seasonal Positions Fire - Resident Fire Fighters 3.50 2 seasonal residents and increased # shifts for residents (W Vail FS) Forest Health (1.00) Reduced by 2 seasonal positions (From 6 to 4 per summer) 2.50 Total Changes to FTE Count: (4.30) -11- 1 1/16 /2010 6 -1 -14 TOWN OF VAIL 2011 BUDGET TEN -YEAR SUMMARY OF BUDGETED POSITIONS BY DEPARTMENT 2011 1 Positions I lDepartment 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Change Full -Time Regular Positions - Funded by TOV Town Officials 7.10 7.10 6.50 6.90 6.90 7.06 6.23 6.23 6.23 5.43 (0.80) Administrative Services 18.00 18.00 18.00 19.15 18.15 19.68 21.02 20.35 20.35 19.35 (1.00) Community Development 15.00 15.00 14.00 1185 13.85 15.18 15.18 17.85 15.85 14.85 (1.00) Fire 1820 18.20 18.00 18.00 18.00 18.00 22.00 2125 24.25 24.00 (0.25) Police and Communications 60.25 61.75 54.25 56.25 54.25 54.50 54.50 54.50 54.50 52.75 (1.75) Library 8.75 8.75 6.38 6.38 6.38 6.63 6.63 6.55 6.55 6.55 0.00 Public Works, Streets & Roads, L 29.00 29.75 29.75 31.25 31.75 31.75 31.75 30.80 30.80 30.80 0.00 Transportation & Parking 28.50 28.50 27.50 30.50 31.00 31.00 31.00 33.00 31.00 31.00 0.00 Fleet Maintenance 13.00 13.00 13.00 13.00 13.00 1100 13.00 1100 12.00 12.00 0.00 Facility Maintenance 21.50 20.50 20.50 20.00 20.00 20.00 20.00 20.00 20.00 20.00 0.00 Capital Projects 1.00 1.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total FTE's - Full -Time Regular 220.30 221.55 208.88 216.28 213.28 216.80 221.31 223.53 221.53 216.73 (4.80) Fixed Term Employees Administrative Services 1.00 1.00 1.00 - 1.00 - 0.00 Community Development 2.00 6.00 6.00 5.00 4.00 4.00 0.50 - (0.50) Fire 1.00 2.00 2.00 2.00 2.00 - 0.00 Police and Communications - 1.48 3.48 3.48 3.48 3.00 - 0.00 Public Works, Streets & Roads, Landscaping 1.75 1.63 1.63 1.63 1.50 1.50 (1.50) Capital Projects 1.25 1.63 1.63 1.63 1.50 - 0.00 Document Imaging 0.75 0.75 0.75 0.75 1.00 1.00 1.00 1.00 0.00 Total Fixed -Term 1.00 1.00 3.75 12.23 16.49 14.49 1174 13.00 3.00 1.00 (2.00) Externally Funded Employees Police and Communications 4.00 7.50 8.00 6.50 8.00 9.00 9.00 9.00 11.00 11.00 0.00 Total Externally Funded 4.00 1 �4s' I n 8.00 6.50 8.00 9.00 9.00 9.00 11.00 11.00 0.00 6 -I -15 12 TOWN OF VAIL 2011 BUDGET TEN -YEAR SUMMARY OF BUDGETED POSITIONS BY DEPARTMENT 2011 Positions I lDepartment 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Change Seasonal Positions - Funded by TOV Town Officials 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Administrative Services 0.42 0.42 0.42 0.98 1.04 0.59 1.19 1.94 1.94 1.94 0.00 Community Development 0.96 0.96 0.48 0.00 0.00 0.00 1.25 0.25 0.00 0.00 0.00 Fire 1.40 1.40 1.40 1.51 1.68 7.20 7.20 10.20 10.20 12.70 2.50 Police and Communications 0.93 0.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Library 0.93 1.09 2.48 2.48 2.48 1.70 1.70 1.70 1.70 1.70 0.00 Public Works/ Streets & Roads /L, 10.18 9.55 7.57 8.69 8.94 11.42 11.90 12.86 10.46 10.46 0.00 Transportation & Parking 28.00 26.89 25.84 23.24 22.78 25.31 26.70 25.70 27.46 27.46 0.00 Fleet Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.25 0.25 0.00 Facility Maintenance 0.83 0.83 1.33 1.33 1.36 1.38 1.38 1.38 1.38 1.38 0.00 Total Seasonal / Part -Time 43.65 41.62 39.52 38.23 38.28 47.60 51.32 54.03 53.39 55.89 2.50 All FTE's (Full -Time Equivalents) Town Officials 7.10 7.10 6.50 6.90 6.90 7.06 6.23 6.23 6.23 5.43 (0.80) Administrative Services 19.42 19.42 19.42 20.13 20.19 20.27 22.21 22.29 22.29 21.29 (1.00) Community Development 15.96 15.96 16.48 19.85 19.85 20.18 20.43 22.10 16.35 14.85 (1.50) Fire 19.60 19.60 19.40 20.51 21.68 27.20 31.20 33.45 34.45 36.70 2.25 Admin 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 0.00 Patrol 27.00 28.98 30.48 31.00 31.25 31.00 28.00 27.00 (1.00) Investigation 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 0.00 Records 5.25 5.25 5.25 5.50 5.25 5.50 5.50 4.75 (0.75) Dispatch 22.00 22.00 23.00 23.48 23.48 23.00 25.00 25.00 0.00 Police and Dispatch Total 61.18 62.23 62.25 64.23 65.73 66.98 66.98 66.50 65.50 63.75 (1.75) Library 9.68 9.84 8.86 8.86 8.86 8.33 8.33 8.25 8.25 8.25 0.00 Public Works, Streets & Roads 39.18 39.30 37.32 41.69 42.32 44.80 45.28 45.16 42.76 41.26 (1.50) Transportation & Parking 56.50 55.39 53.34 53.74 53.78 56.31 57.70 58.70 58.46 58.46 0.00 Fleet Maintenance 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 12.25 12.25 0.00 Facility Maintenance 22.33 21.33 21.83 21.33 21.36 21.38 21.38 21.38 21.38 21.38 0.00 Ca ital Pro'ects 1.00 1.00 1.75 3.00 2.38 2.38 2.63 2.50 1.00 1.00 0.00 Total FTE's 264.95 264.17 260.15 273.24 276.05 287.88 295.37 299.56 288.92 284.62 (4.30) 1 1/16/2010 6 -1 -16 3- Town of Vail Employee Benefits 2008 2009 2010 2011 Actual % Salary Actual % Salary Budget % Salary Proposed % Salary Full -Time Regular Employees Fee Based Health Insurance 2,300,000 17.6% 2,515,558 18.8% 2,475,000 18.0% 2,530,000 18.73% Group Term Life and Accidental Death Insurance 258,578 2.0% 214,665 1.6% 90,000 0.7% 86,000 0.64% Long -term Disability Insurance 60,000 0.4% 55,000 0.41% Survivor's Life Insurance 75,000 0.5% 72,000 0.53% Short -term Disability Insurance 40,000 0.3% 25,000 0.2% 35,000 0.3% 32,000 0.24% Wellness Benefit 98,672 0.8% 94,352 0.7% 96,000 0.7% 95,000 0.70% Sworn Officer Death and Disability Insurance 56,263 0.4% 65,629 0.5% 70,000 0.5% 68,500 0.51% Subtotal Fee Based 2,753,513 21.1% 2,915,204 21.8% 2,901,000 21.1% 2,938,500 21.75% Payroll Based Pension Contribution 1,959,542 15.0% 2,059,169 15.4% 2,105,425 15.3% 2,061,484 15.26% Medicare 170,794 1.3% 172,959 1.3% 199,263 1.5% 180,861 1.34% Workers' Compensation Insurance 192,871 1.5% 182,241 1.4% 228,500 1.7% 192,500 1.43% Unemployment Compensation Insurance 27,846 0.2% 28,527 0.2% 48,100 0.4% 27,000 0.20% Subtotal Payroll Based 2,351,053 18.0% 2,442,896 18.3% 2,581,288 18.8% 2,461,845 18.23% Total Full -Time Benefits 5,104,566 39.1% 5,358,100 40.1% 5,482,288 39.9% 5,400,345 39.98% Part -Time and Seasonal Employees Fee Based Wellness 78,012 4.1% 72,199 3.8% 75,000 4.0% 75,000 3.89% Wellness - Boards & Commissions 8,100 0.4% 9,100 0.5% 9,100 0.47% Mini -Med Program 4,199 0.2% 16,000 0.8% 6,000 0.31% Payroll Based Pension Contribution 28,546 1.5% 30,115 1.6% 28,381 1.5% 28,910 1.50% Medicare 27,594 1.5% 27,899 1.5% 27,435 1.5% 27,946 1.45% Workers' Compensation Insurance 28,122 1.5% 26,153 1.4% 31,500 1.7% 27,500 1.43% Unemployment Compensation Insurance 4,060 0.2% 4,094 0.2% 6,622 0.4% 3,855 0.20% Subtotal Payroll Based 88,322 4.7% 88,261 4.7% 93,938 5.0% 88,210 4.58% Total Part -Time and Seasonal Benefits 166,334 8.8% 172,759 8.9% 194,038 10.3% 178,310 9.25% Total Benefits - All Employees 5,270,900 35.2% 5,530,859 36.1% 5,676,326 36.3% 5,578,655 36.14% -14- 11/16/2010 6 -1 -17 TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE GENERALFUND 2008 2009 2010 2010 2011 Actual Actual Budget Amended Proposed Comments Revenue Local Taxes: $ 19,631,366 $ 16,913,338 $ 16,600,000 $ 16,600,000 $ 16,900,000 Budgeted flat with 2009 Actual Sales Tax Split b/t Gen'I Fund & Capital Fund 59/41 52/48 61/39 61/39 61/39 Sales Tax $ 11,640,000 $ 8,760,000 $ 10,126,000 $ 10,143,624 $ 10,310,000 Property and Ownership 4,309,622 4,506,491 5.01 3,647 5.01 3,647 5.055,000 Ski Lift Tax 3,277,703 3,048,011 3,115,000 3,115,000 3,193,000 2.5% increase per year Franchise Fees, Penalties, and Other Taxes 1,075.209 944,084 1,056,126 1,074,564 1,087,402 3.0% increase (based on utilities sales) Licenses & Permits 3,903.026 1,440,972 732,200 1,082,200 732,200 Not assuming any major redevelopment projects Intergovernmental Revenue 1,706,197 1,611,570 1,544,000 1,717,830 1,524,065 County sales tax, road & bridge, Hwy users tax (based on 5 -yr avg); COPS & SAFER grants Transportation Centers 4,816,505 4,975,795 5,432,744 4,932,744 4,911,500 Updated for net reduction of $50K from policy change (add'I free hour) Charges for Services 1,000,733 717,653 724,775 711,768 702,963 Based on average collections in a normal year Fines & Forfeitures 396,707 330,660 260,000 260,000 305,000 Based on average collections in a normal year Earnings on Investments 571,073 170,353 115,000 115,000 194,000 Based on 1 % return on fund balances Rental Revenue 949,961 912,091 882,796 882,796 869,816 Based on average collections in a normal year Miscellaneous and Project Reimbursements 163,025 243,991 92,800 337,800 161,658 Based on average collections in a normal year Total Revenue 33,809,761 27,661,671 29,095,088 29,386,973 29,046,604 Expenditures Salaries 13,319,994 13,357,585 13,530,070 13,583,822 13,671,012 2% merit budgeted and 1 %one -time bonus pool Benefits 4,404,800 4,555,786 4,619,212 4,621,972 4,595,579 39.68% full-time benefits rate; overall rate 35.94/ Subtotal Compensation and Benefits 17,724,794 17,913,371 18,149,282 18,205,794 18,266,591 Contributions and Special Events 1,366,668 1,333,890 1,225,025 1,285,025 1,273,750 Based on staff and Council recommendations All Other Operating Expenses 7,038,794 4,892,123 6,206,218 6,363,876 5,869,021 7.9% reduction from 2010 amended; $1.2M reduction or 17% from 2008 Heavy Equipment Operating Charges 2,351,269 1,929,721 2,074,812 2,067,124 2,071,117 Based on estimated usage and fuel costs Heavy Equipment Replacement Charges 635,903 632,271 677,538 671,944 546,104 Based on scheduled replacement of fleet vehicles Dispatch Services 533,164 539,763 522,213 522,213 537,827 Represents 31% of total agency billings from the Dispatch Services Fund Total Expenditures 29,650,592 27,241,139 28,855,088 29,115,976 28,564,410 Revenue Over (Under) Expenditures 4,159,169 420,532 240,000 270,997 482,194 Transfer to Capital Projects Fund (441,000) (3,659,000) (3,749,000) _ $ 3.66M Transfer of General Fund fund balance for W. Vail Fire Station construction; $90K transfer of Library donations for use toward new self check system Employee Home Ownership Program (240,000) (240,000) - Total Expenditures 30,641,592 27,241,139 32,754,088 33,104,976 28,564,410 Surplus Net of Transfers & New Programs 3,168,169 420,532 (3,659,000) (3,718,003) 482,194 Beginning Fund Balance 19,834,717 23,002,885 22,289,811 23,423,417 19,705,414 Ending Fund Balance $ 23,002,885 $ 23,423,417 $ 18,630,811 $ 19,705,414 $ 20,187,608 As% of Annual Revenue 68% 85 96 64% 67% 70 11/16/2010 15 6 -1 -18 TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE GENERALFUND 2008 2009 2010 2010 2011 Actual Actual Budget Amended Proposed Revenue Local Taxes: $ 19,631,366 $ 16,913,338 $ 16,600,000 $ 16,600,000 $ 16,900,000 Sales Tax Split b/t Gen'I Fund & Capital Fund 59/41 52/48 61/39 61/39 61/39 Sales Tax $ 11,640,000 $ 8,760,000 $ 10,126,000 $ 10,143,624 $ 10,310,000 Property and Ownership 4,309,622 4,506,491 5,013,647 5,013,647 5,055,000 Ski Lift Tax 3,277,703 3,048,011 3,115,000 3,115,000 3,193,000 Franchise Fees, Penalties, and Other Taxes 1,075,209 944,084 1,056,126 1,074,564 1,087,402 Licenses & Permits 3,903,026 1,440,972 732,200 1,082,200 732,200 Intergovernmental Revenue 1,706,197 1,611,570 1,544,000 1,717,830 1,524,065 Transportation Centers 4,816,505 4,975,795 5,432,744 4,932,744 4,911,500 Charges for Services 1,000,733 717,653 724,775 711,768 702,963 Fines & Forfeitures 396,707 330,660 260,000 260,000 305,000 Earnings on Investments 571,073 170,353 115,000 115,000 194,000 Rental Revenue 949,961 912,091 882,796 882,796 869,816 Miscellaneous and Project Reimbursements 163,025 243,991 92,800 337,800 161,658 Total Revenue 33,809,761 27,661,671 29,095,088 29,386,973 29,046,604 Expenditures by Type: Municipal Services: Town Officials 1,224,007 1,161,906 1,234,126 1,279,126 1,295,861 Administrative Services & Risk Management 3,164,384 2,986,758 3,350,484 3,359,732 3,293,860 Community Development & Housing 3,327,400 1,888,707 1,847,525 1,947,525 1,715,097 Police 4,511,846 4,496,447 4,587,116 4,597,996 4,523,319 Police Communications 535,657 539,763 522,213 522,213 537,827 Fire 2,577,087 2,717,947 2,869,190 2,902,243 2,981,136 Public Works & Streets 3,717,159 3,357,816 3,649,854 3,652,561 3,563,430 Transportation & Parking 4,780,515 4,458,923 4,701,320 4,701,320 4,661,727 Facilities 3,442,983 3,308,598 3,872,255 3,872,255 3,733,318 Library 828,056 808,649 805,119 805,119 800,580 Economic Development 1,541,498 1,515,625 1,415,886 1,475,886 1,458,255 Total Expenditures 29,650,592 27,241,139 28,855,088 29,115,976 28,564,410 Revenue Over (Under) Expenditures 4,159,169 420,532 240,000 270,997 482,194 Transfer to Capital Projects Fund (441,000) (3,659,000) (3,749,000) Investment in Employee Home Ownership Program (240,000) (240,000) Total Expenditures 30,641,592 27,241,139 32,754,088 33,104,976 28,564,410 Surplus Net of Transfers & New Programs 3,168,169 420,532 (3,659,000) (3,718,003) 482,194 Beginning Fund Balance 19,834,717 23,002,885 22,289,811 23,423,417 19,705,414 Ending Fund Balance $ 23,002,885 $ 23,423,417 $ 18,630,811 $ 19,705,414 $ 20,187,608 %age of Fund Balance to Annual Revenue 68% 85% 64% 67% 70% 11/16/2010 1 6- 1 - 19 Town of Vail Summary of Operating Expenditures 2010 2010 2008 2009 Original Amended 2011 Expenditures by Type: Actual Actual Budget Budget Budget Operating Expenses paid for by General Fund: Town Officials 1,224,007 1,161,906 1,234,126 1,285,713 1,295,861 Administrative Services & Risk Management 3,164,384 2,986,758 3,350,484 3,329,574 3,293,860 Community Development & Housing 3,327,400 1,888,707 1,847,525 1,951,861 1,715,097 Police 4,511,846 4,496,447 4,587,116 4,603,174 4,523,319 Police Communications 535,657 539,763 522,213 522,213 537,827 Fire 2,577,087 2,717,947 2,869,190 2,910,748 2,981,136 Public Works & Streets 3,717,159 3,357,816 3,649,854 3,657,039 3,563,430 Transportation & Parking 4,780,515 4,458,923 4,701,320 4,701,320 4,661,727 Facilities 3,442,983 3,308,598 3,872,255 3,872,255 3,733,318 Library 828,056 808,649 805,119 806,193 800,580 Economic Development 202,677 186,487 177,809 172,809 173,112 Information Center 200,722 200,336 209,990 209,990 202,990 Council Contributions 598,478 519,834 410,275 475,275 472,275 Commission on Special Events 539,620 608,968 617,812 617,812 609,878 Total paid by General Fund: 29,650,591 27,241,139 28,855,088 29,115,976 28,564,410 Operating Expenses paid for by Marketing Fund: Commission on Special Events 280,000 280,000 280,000 280,000 280,000 Operating Expenses paid for by RETT: Annual Park and Landscape Maintenance 1,143,289 1,145,481 1,323,478 1,333,114 1,317,340 Tree Maintenance 65,986 47,111 65,000 127,843 65,000 Rec. Path Capital Maint 325,114 123,406 150,000 261,196 104,094 Park / Playground Capital Maintenance 124,368 92,399 115,000 122,500 90,000 Street Furniture 14,178 18,113 22,500 22,500 22,500 Public Art - operating expenses 78,455 81,861 85,157 85,157 89,371 Alpine Garden Support 90,000 55,620 55,620 65,620 55,620 Black Gore Creek Sand Mitigation 93,431 38,937 90,000 90,000 50,000 Forest Health 209,750 189,442 265,000 265,000 145,000 Environmental Sustainability 166,036 205,379 250,000 378,160 250,000 Total paid by RETT: 2,310,607 1,997,749 2,421,755 2,751,090 2,188,925 Total Operating Expenditures 32,241,198 29,518,888 31,556,843 32,147,066 31,033,335 -8.4% 8.9% -3.5% 11/16/2010 1 6 -1 -20 2011 Contribution Request Spreadsheet 2010 2011 Requests Council Approved at 9/21/10 2010 Cash 20101rn 2011 Cash 2011 Im ImKind TOWN OF VAIL FUNDING REQUEST Funded 2010 In-Kind Funded Kind Value Request 2011 1, -Kind Request Kind Approved In -Kind Value GENERAL FUND Contributions: Value Cash ECONOMIC: A Bravo! Colorado i New Volt, Philharmonic 75,000 75.000 75.000 A Bravo! Colorado / Philadelphia Orchestra 75.000 75.000 75.000 A Bravo! Colorado /Music Matters Education & Outreach 7.500 7,110 7 500 A Bravo! Colorado - General operations 15 Ford Park Parking 15 Ford Park Parkin 15 Ford Park Parkin 8 National Re dor Ochestra 1,000 1,000 1.000 C Vail Farmers' Market Traffi, buses. signs 4.500 6.500 Traffic. huses. si ne 4.500 Traffic. buses, si ne 4.500 D Vail Jazz Festival June -Se '09 30,600 1 60.000 50,600 Note: $20K paid from Markeiting Fund E Colorado Ski Museum 51.000 Deduction in rent 9.000 42.000 Red relm in rent 9.000 F Vail Vallev Foundation Birds of Prey (Dec. 1 -4, 05) TOV buses 10.000 TOV buses 13,000 TOV buses 13.000 American Ski Classic 5,000 parking vouchers 3,000 20,000 parking vouchers 3000 5,000 parking vouchers 3.000 Street Beat / Winter Concert Series 25,650 PD & PW support 7.500 40,000 PD & PW su ort 7,500 25.650 PD & PW sn rt 7.500 Vail Internabonal Dance Festival 45,000 50,000 45.000 Gerald R. Ford Amphitheater (Hot Summer Nights) 24,525 PD Dresence 2.800 27.500 PD resence 2,800 24,525 PD m 2.800 UCl2.1 Pro Cycling Even[ 175,000 olice, uhlic works, fire 15,000 $75K funded with 2010 surplus 15,000 G Vail Chamber & Business Association VCBA 10.000 1 1 rare Premier Impressions ' $10K granted from 2009 budge H Commission on Special Events 791,810 791,810 791,810 Allocated to the Pro -C lin Event $75K allocation to bike race put back into CSE in' erce Studies 50.000 Allocated to Climbin Wall World Cu 45.000 kee se arate from CSE 45.000 45.000 1 Hoffman Outreach / Gay Ski Week 75,000 J Vail Entencinmenl District 40.000 K Ea le Count Loan Fund / Home Buyer Assistance 56000 TOTAL ECONOMIC 1.126,085 27,800 1,605,310 54,800 1.198,085 54,800 EDUCATIONAL L Eagle Valley Chtldcare - annual contribution 45.000 donate TOV computers & set up 50,000 45.000 M Vail 501h DVD / Summit Films 10.000 10.000 TOTAL EDUCATIONAL 45,000 60,000 55,000 RECREATION N Ski & Sno veoard Cluh Vail Oc128 - 31.2010 2 da s ice/revisit if an left over 2650 4 days of ice 5.285 2 days of ice 2.650 O WMC Smug Fashion Show & Luncheon Mar 24.2010 3001 -0a arkin asses 7.500 3001 -da ad,in sses 7.500 3001 -0a arkin asses 7.500 P Vail Junior Hockey Association - Nov 2010 Tournament 5 days ice +Donovan/ no arkin asses 10.125 9 da s of ice +Donovan 1 da + arkin rise 24.016 5 da s of ice +Donovan 1 day + parking asses 10.125 O Skatin Club of Vail Jul 14 -18'10 &late Dee,'I 5 days ice revisit if an left over 6.625 9 days of ice 11,891 5 da s of ice 6.625 R S ecial Ol m ies Sunda sJan, Feb. Mar'10 42 Parking asses -LH only 1.050 42 rki asses 1050 42 arkin asses 1.050 S Vail Valle Athlete Commission See item F 6.000 8.500 6,000 T Forest ht Ski Guides 2 blue asses /LH onl 2.200 2 arkin asses in Village 2 200 2 rki asses in Vill a 2.200 U US Reftin Association USRA 15,000 TOTAL RECREATION 6,000 30,150 23.500 51,942 6,000 30,150 SUBTOTAL - CONTRIBUTIONS 1,177,085 57,950 1,688,810 106,742 1,259,085 84,950 ARRANGEMENTS and AGREEMENTS: V Vail Valley Comm. TV/Ch5 Franchise Fee 70.000 30% of collected Franchise Fees 70,000 30% of collected Franchise Fees 70.000 30% of collected Franchise Fees SUBTOTAL - ARRANGEMENTS and AGREEMENT 70,000 _ 70,000 70,000 GRAND TOTAL General Fund 1,247,085 57,950 1,758,810 106,742 1,329,085 84,950 Real Estate Transfer Tax Fun: W Bett Ford Ai ine Garden Foundation Ope,at.o. "s 556620 2 designated Ford Part, spaces 1 75,000 12 de signal ed Ford Park Summer; 2 winter passes 55,620 2 desi naiad Ford Park summer darki n s ors X I Eagle River Watershed Sediment Pollution Efforts 90.000 90,000 1 50.000 Grand Total 1,602,695 57,950 1 2,133,800 1 106 1 1,644,695 1 84.950 11/16/2010 6 -1 -21 18 2011 Contributions Please see the attached spreadsheet to coincide with the following background and recommendations. ECONOMIC A. Bravo! Colorado BACKGROUND INFORMATION: Bravo! Vail Valley Music Festival is requesting a total of $157,500 to help fund the 2011 Philadelphia Orchestra and the New York Philharmonic — Vail Residency programs. Bravo! is requesting $75,000 for each program, and $7,500 for the Music Matters Education and Outreach Program. STAFF RECOMMENDATION: Staff recommends funding at $157,500 (flat since the 10% reduction in 2009). Historically, the Town of Vail has contributed funding to the New York Philharmonic and the Philadelphia Orchestra Tier 1 programs. The cultural benefit to the Town of Vail and the tourist attraction of this event are major factors in staff's recommendation for funding. B. Bravo! Family Concert (National Repertory Orchestra) BACKGROUND INFORMATION: The Orchestra is requesting $1,000 to offset travel expenses associated with their annual concert in Vail. Each season, they perform a free family concert at the Ford Amphitheatre in conjunction with Bravo!. STAFF RECOMMENDATION: Staff recommends funding at $1,000 based on the cultural benefit to the town and the potential increase in drive traffic from the Summit area. C. Vail Farmer's Market BACKGROUND INFORMATION: Vail Farmer's Market is requesting $4,500 of in -kind value to cover the cost of services provided by the Town of Vail during the events, and $6,500 cash to cover the cost of traffic control. The Commission on Special Events (CSE) funded $48,000 toward the Farmer's Market in 2010. STAFF RECOMMENDATION: Staff recommends funding the in -kind request of $4,500 which will be included in the town's 2011 operating budget. Staff recommends consolidating the cash request with the funding provided by the CSE, as was done for 2010. D. Vail Jazz Foundation BACKGROUND INFORMATION: The Vail Jazz Foundation is requesting $60,000 to help fund the Jazz at Vail Square concert series (ten concerts) from June through September 1 st, the Vail Jazz Party during Labor Day weekend (7 sessions), and ten free summer concerts at the Vail Farmers' Market. Out of a total of 27 performances in Vail, the Foundation would propose that 20 of those be free to the public. STAFF RECOMMENDATION: Staff recommends funding a total of $30,000 ($30,600 funded in 2009 and 2010) to support the 10 Vail Square free concerts and the Labor Day weekend Vail Jazz I 1/ 16/2 6 -1 -22 Party. Staff does not agree with an additional contribution for the Farmer's Market concerts, as those performances should be included in the costs for the Market funded through the Commission on Special Events. E. Colorado Ski Museum BACKGROUND INFORMATION: The museum is requesting in -kind of $9,000 (free rent) and cash of $51,000. The contribution will be used to help fund two new exhibits: The Colorado Ski & Snowboard Hall of Fame and The History of Colorado Snowboarding, and to fund a part -time Education Assistant position to help implement education programs. STAFF RECOMMENDATION: Staff recommends funding the in -kind request for free rent ($9,000) and a cash contribution of $42,000 (for a total contribution of $51,000) to help fund the two new exhibits. The town requests that the Town of Vail logo be prominent on the exhibits. The Ski Museum is considered a valuable town asset, similar to the Betty Ford Alpine Gardens, and staff would recommend annual support at the same dollar level in future years. The museum will have a critical role in future Vail events such as the 2015 World Championships and Vail's 50 anniversary. F. Vail Valley Foundation (VVF) BACKGROUND INFORMATION: The Foundation is requesting $137,500 of cash funding and $26,300 of in -kind for entertainment programs and winter events. (Street Beat; Vail International Dance Festival and Hot Summer Nights, Birds of Prey, and the American Ski Classic). In addition, the VVF has presented a proposed cycling event for 2011 and is requesting a cash contribution of $175,000 and in -kind of $15,000 contingent upon the event coming to fruition. STAFF RECOMMENDATION: Staff recommends funding the in -kind requests for the special events, although limits the Birds of Prey in -kind to $10,000 ($13,000 requested), and those costs will be built into the town's 2011 operating budget. Staff also recommends the same amount of cash funding as given in 2009 & 2010: $25,650 toward Street Beat; $45,000 to the Vail International Dance Festival; and $24,525 toward Hot Summer Nights, and $5,000 for the American Ski Classic for a total of $100,175. Staff supports the UCI 2.1 Pro - Cycling event, and recommends funding $100,000 from Vail Local Marketing District reserves, and $75,000 as an allocation from the Commission on Special Events. G. Vail Chamber & Business Association (VCBA) BACKGROUND INFORMATION: The VCBA is requesting $10,000 to be used for the Premier Impressions Program. STAFF RECOMMENDATION: Staff recommends funding the $10,000 contingent upon commitment from Vail Resorts, and that the Premier Impressions program is fully funded as budgeted (attached budget under item "G ") and implemented. H. Commission on Special Events (CSE) BACKGROUND INFORMATION: The CSE is requesting funding for various events, totaling $836,810 and an additional $50,000 to perform independent intercept surveys to assess the return on investment of various events to the town. 11 / 16/2� 8 6 -1 -23 STAFF RECOMMENDATION: Staff recommends funding the $836,810 with $75,000 allocated to the UCI 2.1 Pro - Cycling event and $45,000 allocated for the Teva Mountain Games World Climbing Cup (same as prior years). Staff supports the intercept study, but recommends funding through the Vail Local Marketing District to study events receiving over $20,000 of CSE dollars. An additional $52,929 of staffing & related expense is currently included in the town's 2011 operating budget. The entire CSE budget is part of the Economic Development Department of the town. EDUCATIONAL I. Hoffman Outreach ( "Vail Gay Ski Week" and "Singles Ski Week ") BACKGROUND INFORMATION: Hoffman Outreach has requested $75,000 of funding for marketing, advertising and event production goods for two events "Vail Gay Ski Week" and "Singles Ski Week ". Hoffman Outreach puts on events on behalf of other non - profit organizations to assist them with marketing, increasing memberships and to meet their fundraising goals. STAFF RECOMMENDATION: While increased group business is desirable, staff does not recommend funding from Council contributions for marketing and advertising. The Vail Local Marketing District pursues group business using lodging tax collections. Also, we recommend that Hoffman Outreach apply for funding from the Commission on Special Events for individual events (if applicable) that are planned during those two weeks. J. Vail Entertainment District (VED) BACKGROUND INFORMATION: VED is requesting $40,000 (16% of total estimated project costs) for consulting services during the launch of an entertainment district in Vail. Ultimately, VED would like to place media platforms throughout Vail and enhance the guest experience with tourist information and promotions. STAFF RECOMMENDATION: Staff is supportive of the study of this concept, but believes it is too early in the process to commit funding. If this group is successful passing the concept through the planning department, staff would ask that Council consider funding. K. Eagle County Loan Fund (ECLF) / Home Buyer Assistance BACKGROUND INFORMATION: The ECLF is requesting $5,000 in funding to be used for down payment assistance loans. These loans are available for employees within Eagle County to purchase deed restricted units. STAFF RECOMMENDATION: The ECLF received $5,000 from the Vail Local Housing Authority in 2009 and $15,000 in 2010. Staff recommends that the ECLF continue working with the Vail Local Housing Authority as a more appropriate resource for those funds. 1 1 / 16/2 6 -1 -24 L. Eagle Valley Childcare (EVC) BACKGROUND INFORMATION: The EVC has requested $50,000 of funding for 2011 to subsidize Town of Vail childcare. STAFF RECOMMENDATION: Because the town is a founding partner, staff recommends funding the same amount as 2009 and 2010 ($45,000) to be used for the Vail Childcare facility. This is the only childcare facility in Vail that provides infant care. M. Summit Films: Vail 50 DVD "In the Spirit of the Founders" BACKGROUND INFORMATION: Summit Films is requesting a total of $30,000 from July, 2010 through 2012 ($5,000 has already been awarded as an off -cycle contribution in 2010). These funds would be used for the production of a two hour DVD set documenting the first fifty years of Vail. To date approximately $195,000 has been committed to this project from other donors, including a $150,000 commitment from Vail Resorts. STAFF RECOMMENDATION: Staff recommends funding $10,000 for 2011, for a total of $25,000 over the three -year period. Because the town cannot commit funds beyond the current fiscal year, staff requests that Summit Films apply for annual funding forthe upcoming years (2012 requests will be considered in 2011). This endeavor is the first of several celebrations that the town intends to participate in for Vail's 50 anniversary and we look forward to the results of this project. RECREATIONAL N. Ski & Snowboard Club of Vail BACKGROUND INFORMATION: The Ski & Snowboard Club of Vail has requested in -kind funding of $5,285 for 4 days of ice for their annual Ski & Snowboard Swap event to be held Oct 27 — 30, 2011. STAFF RECOMMENDATION: Staff recommends funding this in -kind request for two days (out of four requested) with appropriate approval and coordination with the Vail Recreation District. The Ski & Snowboard Club will be responsible for hard costs for use of the Dobson Arena such as set -up, tear -down, cleaning, and utilities. Two days are recommended at this time because the town is currently recruiting participatory sporting events and may need to use some of our allocated free days to offset costs for those groups. However, if there are enough available days remaining prior to this event, staff recommends providing the full amount of days. O. Vail Valley Medical Center Volunteer Corps (VVMC) BACKGROUND INFORMATION: The VVMC is requesting in -kind funding for 300 parking vouchers for the Spring Fashion Show & Luncheon event on Wednesday, March 23, 2011. STAFF RECOMMENDATION: Staff recommends funding this in -kind request as in prior years. It is included in the town's 2011 operating budget. 11 / 16/2 6 -1 -25 P. Vail Junior Hockey Association BACKGROUND INFORMATION: The Vail Junior Hockey Assn. is requesting $15,391 in -kind funding including $11,891 for 9 days of ice (3 weekends during November, 2011) and $3,500 for use of the Donovan Pavilion in the spring of 2011 for an End of Hockey Season gathering for volunteers, sponsors, parents, and players. In addition, they are requesting free or reduced parking in the LionsHead Parking Structure for the 3 rd weekend of the tournament (scheduled for November 18 — 20) at an estimated cost of $8,625. STAFF RECOMMENDATION: Staff recommends providing 5 days of ice time (out of 9 requested), subject to approval and coordination with the Vail Recreation District for the ice time. Staff recommends waiving the fee for Donovan Pavilion, contingent upon approval and coordination with the Donovan Management Company regarding availability. However, the Hockey Assn. will be responsible for hard costs for use of the Dobson Arena and Donovan Pavilion such as set -up, tear - down, cleaning, and utilities. The reduced days relate to the town's need for ice time as mentioned in item "N ". However, if there are enough available days remaining prior to this event, staff recommends providing the full amount of days. The parking request is estimated at a cost of $8,625. Staff does not recommend funding this request as the budget cannot support an increase from the prior year's contribution. Q. Skating Club of Vail BACKGROUND INFORMATION: The Skating Club of Vail has requested in -kind funding of $11,891 for 9 days of ice for two separate competitions (30 Annual Vail Invitational Championships and the 8 th Annual Vail Mountain Fun Skating Competition) July 13 -17, 2011 and the Holiday Ice Shows in late December, 2011). STAFF RECOMMENDATION: Staff recommends providing 5 days of ice time (out of 9 requested) subject to approval and coordination with the Vail Recreation District. The Skating Club will be responsible for hard costs for use of the Dobson Arena such as set -up, tear -down, cleaning, and utilities. The reduced days relate to the town's need for ice time as mentioned in item "N ". However, if there are enough available days remaining prior to this event, staff recommends providing the full amount of days. R. Special Olympics BACKGROUND INFORMATION: The Special Olympics is requesting in -kind funding of $1,050 for a total of 42 parking vouchers for volunteers who train the athletes on 11 Sundays spanning January through March. STAFF RECOMMENDATION: Staff recommends funding this in -kind request, for the LionsHead parking structure only, with one -time entry /exit coupons (total of 42). S. Vail Valley Athlete Commission (see backup for item F) BACKGROUND INFORMATION: The Athlete Commission is requesting a $8,500 cash contribution to support local athletes. The athletes are also funded by the Vail Valley Foundation ($10,000 for 2011) and Vail Resorts ($10,000 for 2011). I I/ 16/20 6 -1 -26 STAFF RECOMMENDATION: Staff recommends funding this request at $6,000 (flat with 2009 and 2010) in support of our athletes and for the international exposure for the Town of Vail. T. Foresight Ski Guides BACKGROUND INFORMATION: Foresight Ski Guides is requesting two parking passes for the Vail Village parking structure for January — April 2011 and November /December 2011. Foresight provides parking to volunteer guides, half of which drive from Denver. Local guides usually take public transportation and /or carpool. Foresight provides challenge recreation opportunities to visually impaired participants and guides, including the Colorado School for the Blind and soldiers blinded in Iraq and Afghanistan. STAFF RECOMMENDATION: Staff recommends providing two blue passes, restricted to the LionsHead parking structure, as was approved in 2010. U. U.S. Rafting Association (USRA) BACKGROUND INFORMATION: The USRA is requesting cash funding of $15,000 to support the Vail -based U.S. Raft Teams as they travel to national and international competitions during the 2011 season. Funding will also be used to defray general operating costs. STAFF RECOMMENDATION: Staff recommends that this team approach the Vail Valley Athlete Commission as this type of requests fits directly with the mission of that organization. ARRANGEMENTS & AGREEMENTS V. Vail Valley Community TV / Channel 5 BACKGROUND INFORMATION: Channel 5 is requesting a portion of the franchise fee the Town of Vail receives annually from Comcast. In 2010 this amount was budgeted at $70,000. STAFF RECOMMENDATION: Staff recommends funding the franchise fee at 30 %, approximately $70,000 based on 2011 budgeted franchise fee revenue. This recommendation is pending the outcome of the Comcast franchise agreement with the town. I I/ 16/20 Q 6 -1 -27 REAL ESTATE TRANSFER TAX FUND W. Betty Ford Alpine Gardens BACKGROUND INFORMATION: The Alpine Garden Foundation is requesting funding of $75,000 for general operating, education programs and conservation expenses. They are also requesting for the first time two parking passes in the Vail structure along with the two designated summer parking spaces at Ford Park. The Garden hosts thousands of visitors per year and has achieved World - premier status as a high altitude garden. STAFF RECOMMENDATION: Staff recommends funding operating expenses at $55,620, flat with 2009 and 2010 funding. 2009 had been reduced by 10% from 2008. Staff is concerned with the sustainability of this organization upon review of their financial condition. A town staff member currently sits on the board with a non - voting seat. Staff requests that the Alpine Gardens grant the town a voting seat on the board. The Gardens will be provided Ford Park spaces for summer as in prior years, but the budget cannot support the new request for two blue passes. X. Eagle River Watershed BACKGROUND INFORMATION: The Eagle River Watershed is requesting $90,000 of funding. Of this request, $57,000 relates to the maintenance and monitoring of the Black Gore Creek, $18,000 for general operating support, $6,500 of public outreach /information, $6,500 for collaborative action monitoring with other local municipalities and $2,000 for Clean Up events. STAFF RECOMMENDATION: Staff recommends funding of $87,300 (a 3% reduction). Staff also recommends that not more than 20% go toward general operations, with the remainder for specific projects as they are completed. In 2009, $90,000 was funded in total but only $38,000 spent ($18,000 for general operations and $20,000 on programs). Another $90,000 was authorized in 2010, and year -to -date spending totals $42,000 ($18,000 for general operations, $7,000 on programs and $17,000 on flood damage assessment of stream banks and water quality). I 1/ 16/2 6 -1 -28 TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND 2009 Budget Amended Actual 2010 2010 2011 Project Information Total Sales Tax Revenue: 16,913,338 $ 16,600,000 $ 16,600,000 $ 16,900,000 2011 flat with 2009 actual; 2% per year thereafter Sales Tax Split between General Fund & 58/42 61/39 61/39 61/39 Capital Fund Sales Tax - Capital Projects Fund 8,251,795 $ 6,474,000 $ 6,474,000 $ 6,590,000 Use Tax 713,582 500,000 600,000 500,000 No major projects assumed after2009; 3% annual increase after 2011 Federal Grant Revenue - 2,508,015 5,028,500 1,428,000 2010: $5.OM for transit center; $28.5K for Police Live Scan Interface software; 2011: $828K for bridge reconstruction, $600K buses Lease Revenue 201,450 184,500 184,500 184,500 Per Vail Commons commercial and residential leases Employee Housing Fee -In -Lieu 72,425 100,000 Project Reimbursement 246,858 709.100 Resale of Areas duplex 775,000 816,000 Resale of Arosa duplex constructed by the town Earnings on Investments and Other 109,605 18,000 18,000 2009: Based on earnings at .5%; 2010 1%; 2011 - 2014 at 2 9 % Total Revenue 9,619,715 10,459,515 13,930,100 8,702,500 Maintain Town Assets Bus Shelters 21,085 27,000 27,000 27,900 2010 - 2014 various repairs including deck topping replacement, expansionjoint repairs, ventilation, HVAC, Parking Structures 325,380 486,000 486,000 504,000 plumbing and other structural repairs; Starting in 2010 there is an offset from VRA (see transfer near bottom of sheet) 2010 implement energy audit recommendations $600K plus various repairs; 2011 various repairs; 2012: Facilities Capital Maintenance 263,423 473,000 1,073,000 450,000 $135K repairs to PW Admin and $105K repairs to Municipal building, $80K Main Vail Fire Stn electrical and other repairs Library Roof Replacement 400,000 - Added 5/4/10 due to deteriorating condition and inability to continue to fix; removed $400K from 2014 facilities capital Main Vail Station Roof Replacement 250,000 Added roof replacement 5/410; station remodel previously included in 5 -year plan removed Need to gut plumbing; electrical wiring; rooting, etc.; asbestos and mold remediation; 4 units were Creekside Housing Improvements 46,918 54,000 110,582 160,000 completed in 2010; plan to do 4 more in 2011; in 2012, complete remaining 4 units and replace exterior siding, stairs and decks Vail Village Inn Condo Roof (TOV Portion) - 17,000 17,000 Capital assessment from owners' association for space owned by town Street Light Improvements 65,765 67,500 67,500 67,500 New street lights and to refurbish residential lighting On -going maintenance to roads and bridges including asphalt overlays, patching and repairs; 2012 - 2014 Capital Street Maintenance 1,317,330 730,000 733,440 1,153,500 were previously updated for recent bid prices (savings of $925K); Assumes that we do not see a dramatic increase from current prices and that reconstruction of neighborhood roads and bridges occurs (without reconstruction, maintenance costs will increase) Audio Visual 35,271 8,000 33,879 10,000 2010: Council chamber streaming video and $8K far police car cameras; 2011 & beyond: $10K per year for replacement of cameras and recorders (assume 1 each per year) Document Imaging 136,421 110,000 130,592 116,000 Annual maintenance, licensing and contract position thou 2011; later years annual software licensing Software Licensing 12,382 37,000 37,000 33,640 Upgrade Microsoft products on all equipment in 2010; renew licenses in future Hardware Purchases 68,221 45,000 93,000 65,000 Scheduled rotation of PCs, printers and servers Data Center (Computer Rooms) 33,598 1 15,000 15,000 1 15,000 Based on annual replacement schedule of security and power systems for 3 computer rooms Website and e- commerce 12,000 12,000 27,000 Internet security & application interfaces; website redevelopment Comm Dev ArcGIS System 20,899 10,000 25,700 Web access to town GIS information (similar to County's website GIS product) Fiber Optics in Buildings 7,273 21,000 21,000 17,000 Cabling / Network Infrastructure; to repair, maintain & upgrade Network upgrades 16,014 30,000 30,000 21,000 Computer network systems - replacement cycle every 3 -5 years Computer Aided Dispatch (CAD) / RMS Project 41,769 55,000 55,000 57,000 County -wide "Computer Aided Dispatch /Records Mgmt System" includes patrol car laptops and software used to push information to TOV and other agencies Intergraph software upgrade 80,000 TOV portion of upgrade to computer -aided dispatch system Live Scan Interface 28,500 28,500 Funded by grant above; Links our Live Scan software to other agencies Total Maintenance 2,463,039 2,209,000 3 3,071,540 Enhancement of Town Assets Comm Bev Interactive Permit software 200,000 225,000 Replacement of Permit Plus software; allows for web access by customers New Fire Truck 570,000 New fire truck for additional station Library Self -Check System 90,000 Funded by library grants West Meadow Drive 520,539 83,189 Completion of projects under contract; $200K savings Village St- oscape 312,317 300,000 767,389 _ Future work may include newspaper boxes, Ch -point Charlie, Covered Bridge, VVD walk, etc. Per Council 7/7/09, defer $300K to 2010 for covered bridge heat and VVD heated walk 11/16/2010 6- 1 -29 -26- TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND 2009 Budget Amended Actual 2010 2010 2011 Project Information Neighborhood Road Reconstruction 20,531 1,100,000 429,469 1,800,000 Overhaul residential streets '09 design; Construction 2010 Mill Creek; 2011 Vail Valley Drive reconstruction and 2012 -2015 East Vail roads Neighborhood Bridge Reconstruction - - 150,000 1,050,000 Matterhorn Bridge reconstruction moved to 2011 due to CLOT fiscal year and requirements; Partial funding from federal grant Parking Entry System /Equipment 118,388 - 13,000 - Metered lots; equipment obsolete and not servicable by vendor; Time sensitive for installation prior to next parking season Hybrid Bus Battery Replacement Scheduled replacement: 1 in 2012; 7 in 2014; Estimated life of 6 years Replace Buses 23,174 2,199,600 2,283,214 1 1,203,400 2010: 6 regular buses: 2011 2 Hybrid buses Timber Ridge Legal /Zoning 51,220 - 60,080 - For redevlopment project Manor Vail Street Plan - 83,800 - Expenditure related to impact fee paid by Manor Vail development; Keep funds in bugdet due to developer agreement Total Enhancements 1,246,172 3,799,600 4,755,141 4,053,400 New Assets Lions Head Transit Center (VRA) 5,500,000 $5.0 million from Federal grant; $288K transferred from VRA Welcome Center (VRA) 469,681 6,830,319 Funded by the Vail Reinvestment Authority (see Transfers below) Surface Parking Addition (VRA) 65,000 900,000 Funded by the Vail Reinvestment Authority (see Transfers below) Library Remodel 475,000 Funded by the Vail Reinvestment Authority (see Transfers below) West Vail Fire Station 102,548 2,800,000 5,300,000 Construction of West Vail Fire Station Areas Drive - Duplex for Employee Housing 517,681 288,358 Development project for deed - restricted housing Increased to $500K per year as of 2009 per Housing Strategic Plan; use Housing Pay-in -Lieu revenue to Buy -down Program 261,882 314,000 552,118 - offset the annual $500K per Council 10/20/09; removed annual contribution 5,410: fund through fee -in -lieu and focus housing projects on Chamonix and others (see next item for fee in -lieu budget) Buy -down Program Funded by Pay -in -Lieu 186,000 186,000 Housing funded directly by Pay-in -Lieu fees collected from developers Variable Message Signs / Way - Finding 62,320 65,000 193,653 180,000 2010: Solaris $93SK and Main Vail off ramps; '2011: $180K for Main Vail off ramps; 2012: Four Improvements Seasons /Middle Creek; 2013: EverVail; 2014: $65K each for Ford Park and Vail Parking structure 1 -70 Noise 18,320 251,639 383,180 - Construction of and East Vail berm would be phased; $751K accumulated amount and annual $250K budget removed 5/4/10 Chamonix Area Planning 20,265 - 50,000 - Continued work on Chamonix area planning Traffic Impact Fee study 8,355 - 21,645 _ Study to determine redevelopment impact on traffic / potential revenue; identified as a next step in transportation plan Total New Assets: 1,369,675 3,616,639 13,009,635 8,385,319 Total Capital before Financing 5,078,886 9,625,239 21,160,969 15,510,259 Debt Service on Outstanding Bonds 2,289,492 2,273,959 2,273,959 2,279,572 Potential to defease in 2010 pending outcome of ballot initiatives 60/61; There would be no net change to the expenditure for this item, just a timing difference Timber Ridge Debt Service Guarantee 925,000 Annual debt service guarantee - requirement of TR debt Total Expenditures 7,368,378 11,899,198 24,359,928 17,789,831 Other Financing Sources (Uses) Transfer to Vail Reinvestment Authority 2,479,515 2011 transfer traffic impact fees to VRA 2010: Transit Center ($500K). Wecome Center design (469K) LH parking addition feasibility study ($65K) Transfer from Vail Reinvestment Authority (1,194,681) (8,520,319) and LH Pkg onto $160K; 2011: Welcome Center construction ($5.51v), and LH Pkg mite $315K; 2012: LH Portal improvements $1.1 M, LH Pkg mtc $365K; 2013: $2.5M complete LH Portal and LH Pkg mile $31 OK; 2014 into $340K: 2015: into $350K Transfer from General Fund 3,659,000 3,749,000 Transfer of GF fund balance for West Vail Fire station Total Debt Service and Financing: (1,179,485) (4,943,681) (8,520,319) Revenue Over (Under) Expenditures 2,251,337 (260,198) (5,486,147) (567,012) Beginning Fund Balance 8,981,869 5.077,325 11,233,206 5,747,059 Ending Fund Balance 11,233,206 4 9 817 9 127 5,747059 5 'Promissory note due from Childrens' Garden of Leaning included in ending fund balance - not 15,000 10,000 spendable 11/16/2010 6- 1 -30 -27- TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE REAL ESTATE TRANSFER TAX 2009 Budget Amended Actual 2010 2010 2011 Comments Real Estate Transfer Tax $ 2,513,481 $ 4,283,000 $ 4,283,000 $ 4,670,000 Base sales flat with 2009 through 2015; Over 5 -yr period, major redevelopment sales assume only 2/3 of units sell at 80% of listfor Four Seasons, Ritz and Solaris; then only 2 resales per year thereafter for all major redevelopment projects Federal Grants 157,628 - 23,324 - Federal grants for Stephen's Park restoration ($6K), $3K for NWCOG Regional Energy Efficiency grant; $8K forweed control; $6.3K ECO Trails to stripe rec path Golf Course Lease 126,768 122,000 122,000 124,400 Annual lease payment from Vail Recreation District 2% annual increase - deposited to "Recreation Enhancement Account' (accompanying expenditure listed below) Intergovenmental Revenue 22,958 20,000 26,000 20,000 2010: $20K Lottery proceeds; $6K reimbursement from County for solid waste survey; 2011 -2015 Lottery proceeds Recreation Amenity Fees 72,308 10,000 10,000 10,000 Earnings on Investments and Other 136,150 40,402 46,402 15,879 2011 based on 1 % ; 2012 -15 1.5% Total Revenue 3,083,070 4,818,826 4,510,726 4,840,279 Maintain Town Assets Annual Park and Landscape Maintenance 1,145,481 1,323,478 1,333,114 1,317,340 Ongoing path, park and open space maintenance, project mgmt Management Fee to General Fund (5 %) 123,180 214,150 214,150 233,500 5% of RETT Collections - fee remitted to the General Fund for administration Rec. Path Capital Maint 123,406 150,000 261,196 104,094 Capital maintenance of the town's recreation path system Tree Maintenance 47,111 65,000 127,843 65,000 Regular maintenance for tree health within the town (spraying, removing, new trees); scale spraying on town -owned property at approx. $120 per tree Forest Health Management 189,442 265,000 265,000 145,000 Pine beetle mitigation in conjunction w/ forest service; 2011 -2015; Reduced manager to part-time and reduced seasonal positions from 6 to 4 Street Furniture Replacement 18,113 22,500 22.500 22,500 Annual replacement or capital repairs, includes bike racks Pars Playground Capital Maintenance 92,399 115,000 122,500 90,000 Repair & maintenance of playgrounds, restrooms, etc. Reconstruction of retaining wall that supports bike path through the underpass; 2011 additional $200K to complete the frontage Bald Mountain Flg Rd / Underpass Project 200,000 200,000 200,000 road widening for future bike path shoulders as part of underpass project. Project bid out one bid recd over current 2010 budget amount Alpine Garden Support 55,620 55,620 65,620 55,620 Annual support at 3% increase per year (2011 flat with 2009 and 2010) 2010 includes an off -cycle grant of $10K if BFAG raises $90K in donations Black Gore Creek Sand Mitigation 38,937 90,000 90,000 50,000 Annual support of water protection programs; reduced based on lack of program implementation; Will re-look each year at grant application Public Art - Operating 81,861 85,157 85,157 89,371 AIPP salary and operating expenses related to RETT Environmental Sustainabilily 209,264 250,000 378,160 250,000 Environmenal Sustainability salary and expenses Total Maintenance 2,124,814 2,835,905 3,165,240 2,622,425 Enhancement of Town Assets Timber Ridge - Buttehr Creek Rd separation 473,506 15,000 To finish path from TimberRidge to Roost: offset by Federal Grant of approx. $150K Stephen's Park Stream Repairs 66,000 Rebuilding of slreamside area due to erosion; partially funded by federal grant Trailhead Development / Improvement 24,000 Improve trailheads; Continued need through 2012 (one trail per year); Eliminated 2010 as of 9/15/09 ADA Compliance w/ VRD 46,101 10,000 25,000 10,000 Shared costs with VRD - ADA access at recreational facilities;new ADA regulations go into effect 2011 Greenhouse 5,000 - 2010 to finish greenhouse irrigation in spring 4 miles of bike lanes (6 foot shoulders) to be added prior to CDOT overlay project:, first priority is Blue Cow Chute to East Vail; path Frontage Road Bike Lanes/Trails 30,732 - 119,268 2,275,000 from Vail Mtn School to E. Vail exit; 2009 for design ($50K) and survey work ($100K); construction was budgeted in 2010; now pushed to 2011 and 2012. Ford Park Master Plan 171,983 200,000 328,017 2,150,000 Implementing a portion of master plan, which may include Ford Park parking options Ford Park Improvements - - - 200,000 Ford Park pathwork. restrooms and other improvements Seibert Circle 194,922 - 17,774 - To complete project Raw Water / Irrigation Control 5,259 - 366,493 - Water supply infrastructure; Orig plan to include in water bills, but interest rate now 5 %, so paying up front instead of financing Kayak Take -out - - 10,000 - Kayak lake -out area along stream (part of One Willow Bridge development agreement and must be accounted for separately) Stream Tract Encroachment Survey 50,800 - 14,081 - Survey along Gore Creek Red Sandstone Park - Per Safety plan - 439,000 464,000 _ Reconstruction of playground per safety plan; 20 years old; in -house design currently underway and staff working on a plan to deal ), 1/1 /2(11(1 with parking and ADA requirements. Recent acquisition of parking parcel - staff will present park options at future meeting 6 -1 -31 -28- TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE REAL ESTATE TRANSFER TAX 2009 Budget Amended Actual 2010 2010 2011 Comments Booth Creek Playground 15,000 Design in 2011; deferred construction until 2012 Booth Creek Park redevelopment 50,000 Design in 2011; deferred construction until 2012 Public Art - General program / art 27,188 80 221,816 80,000 To purchase sculptures, artwork, art programs and events; remainder is re- appropriated each year to accumulate enough funds Public Art - Morales relocation 164,728 Transferred from Seibert project to cover cost of relocating the Morales artwork Public Art - W interfest 63,446 Annual W interfest event; approximate cost of $25K per year; rely on donations Guest Enhancements 100,000 Planning and design only; implementation of $850K still on unfunded list Landscape Medians 109,689 - 190,311 Frontage road medians alongside redevelopment projects; working on lighting plan for in front of Solads, Vail Plaza and Four Seasons Total Enhancements 1,811,865 729,000 2,070,934 4,904,000 VRD- Managed Facility Projects Recreation Enhancement Account - 122,000 242,000 124,400 Reserve account for golf course improvements - funded by annual lease revenue Golf Course Irrigation 1,286,022 - 22,000 - 2010: to complete irrigation project (50% share with VRD) Improvements to golf course (tees, bridges, etc) and main clubhouse; 2010 includes 7th tee box retaining wall, 11th and 17th hole Golf Course and Clubhouse 12,724 33,000 996,550 753,187 bridges:. 2011 includes roofing, HVAC, boilers. stucco and trim work, and parking lot asphalt for the clubhouse (currently no plans to move forward, but budget based on lease agreement) Golf Course - Maintenance Bldg 196,137 200,000 141,000 - 2010: improvements to maintenance building including stucco, wood trim and soffits; 2014 asphalt driving and parking area Dobson Ice Arena 624,919 100,000 240,000 128,159 2011: Replace original hot water systems based on energy study (2 x 1200 gallons); Large quantity needed for ice maintenance Ford Park/ Tennis Center Improvements 175,000 290,986 227,423 Retaining walls, repair of outbuilding structure, walkways, restroom roof and renovation of locker room Youth Services 97.907 25,000 25,000 2010: furnaces (may wait until 2011 due to potential Welcome Center project) Gymnastics Center 25,000 25,000 2010: cooling system (may wait until 2011) Nature Center 10,000 10,000 2012 wood open rail fencing:, 2015 wood siding and trim Total VRD - Managed Facility Projects 2,217,709 690,000 1,992,536 1,233,169 New Assets Public Restrooms 670,000 Restrooms at W. Meadow Drive & Vail Road; Pushed from '09 to'l1 Total New Assets: 670,000 Total Expenditures 6,154,388 4,254,905 7,228,710 9,429,594 Revenue Over (Under) Expenditures (3,071,318) 563,921 (2,717,984) (4,589,315) Beginning Fund Balance 17,288,265 8,401,043 14,21Q947 11,498,983 Ending Fund Balance' $ 14,216,947 $ 8,964,964 1 $ 11,498,963 1 $ 6,909,648 Promissory note due from Vail Recreation District of $1,028,000 is included in the fund balance and not spendable 11/16/2010 6- 1 -32 -29- Note: Costs are preliminary estimates Eligible for Funding From Capital VRA (TIF) RETT Projects Fund Priority I Guest Services Enhancements 850,000 Wayfinding; things to enhance "linger strategy'; fund from RETT as part of park/walking path system:, $150K for design in 2010/2011 Parking Expansion - LionsHead $181M - $36.2M Projects and costs currently under review Parking Expansion - Ford Park . Structure $30.OM - $54.OM Projects and costs currently under review Parking Expansion - Ford Park . Surface $9.74M - $18.5M Projects and costs currently under review Parking Expansion - North Frontage Road 1,239,000 Various areas Parking Expansion - South Frontage Road 9,511,000 5,461,844 Includes parking from Cascade to PW Shops Simba Run Underpass Feasibility Study 400,000 Study to evaluate project; potential for federal funding if available in the future Energy Audit Enhancements $ TED $60OK included in 2010 budget; High priority for items which save energy and money; could be funded from any of the three sources depending upon the assets location and /or use; projects and costs currently under review Chamonix Site Development - Housing $ TED Funding for infrastructure: estimated costs to come from RFQ Main Vail Station - major remodel 975,000 Removed from funded list 5'4/10 Subtotal Plenty 1 9 850,000 7,675,844 Priority II East Vail Fire Station Remodel 775,000 Roof and parking lot already done; this is the third worst building of the town's assets N. Frontage Rd -East Vail 2,100,000 Frontage Road - Ford Park 5,635,000 These three projects would include turn lanes, bike paths, etc. based on the town's Transportation Master Plan N. Frontage Rd - West Vail 7,513,000 Frontage Rd - LionsHead 7,484,000 From Evergreen to EverVail Main Vail Round -about Major Reconstruction 3,600,000 West Vail Round -about Major Reconstruction 1,000,000 Golf Course Clubhouse 7,000,000 Will likely require site work at additional cost; should be shared project with VRD LionsHead Park 800,000 Previous estimate; Still researching appropriate location LionsHead Information Center Renovation 550,000 Will be replaced with the Welcome Center if that project moves forward LionsHead Parking Structure Enhancements 3,500,000 Does not add spaces, but brings remainder of structure up to standards of new transit center and current codes; enhances guest experience; includes heated stariways on east side Muni Bldg HVAC replace & minor renovations 2,400,000 Replace air handling system and improve airflow; paint, replace carpet, replace ceilings, etc. which may be damaged in construction; move people temporarily Cumulative Priorities I and 11 21,445,000 8,650,000 30,698,844 Priority III Simba Run Underpass 19,500,000 VRA funding available outside TIF district as long as project reduces or prevents blight within the district East LionsHead Circle 1,200,000 Streenscalge in front of structure from LionsHead entry to Dodson arena -final connections to Vail Village Town Shop Improvements 9,225,000 Cumulative Priorities 1, 11, and 111 42,145,000 8,650,000 1 39,923,844 Municipal Building - complete remodel $ TBD Further study required: may be done in connection with other projects Library Remodel - Phase 11 1,475,000 Included in discussions for VRA bond issue, but ultimately was not included in the bond - funded projects. Future presemationm Council Note: This list has been updated for projects that are now included in the VRA bond issue 11/16/2010 6-1-33 - 30 - TOWN OF VAIL 2011 BUDGET PROPOSAL SUMMARY OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE VAIL MARKETING FUND 2009 2010 2010 2011 Actual Budget Amended Proposed Revenue Business Licenses $ 317,190 $ 312,000 $ 317,500 $ 317,000 Earnings on Investments 1,215 - - - Total Revenue 318,405 312,000 317,500 317,000 Expenditures Commission on Special Events / Grants 280,000 280,000 280,000 300,000 Collection Fee - General Fund 15,681 15,600 16,100 16,100 Total Expenditures 295,681 295,600 296,100 316,100 Revenue Over (Under) Expenditures 22,724 16,400 21,400 900 Beginning Fund Balance 83,635 100,169 100,169 121,569 Ending Fund Balance $ 106,359 $ 116,569 $ 121,569 $ 122,469 DEBT SERVICE FUND 2009 2010 2011 Actual Budget Proposed Revenue Transfer from Capital Projects Fund $ 2,289,492 $ 2,273,959 $ 2,279,572 Earnings on Investments and Other 5,847 - - Total Revenue 2,295,339 2,273,959 2,279,572 Expenditures Principal 1,980,000 2,035,000 2,115,000 Interest Expense 296,295 238,331 165,681 Fiscal Agent Fees 3,950 4,000 4,000 Refunding Bonds Issuance Costs - Total Expenditures 2,280,245 2,277,331 2,284,681 Revenue Over (Under) Expenditures 15,094 (3,372) (5,109) Beginning Fund Balance 174,334 189,428 186,056 Ending Fund Balance $ 189,428 $ 186,056 $ 180,947 11/16 /2010 6_I_ -A1- TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE HEAVY EQUIPMENT FUND 2009 2010 2010 Actual Budget Amended 2011 Comments Revenue Town of Vail Interagency Charge $ 2,636,688 $ 2,836,464 $ 2,836,464 $ 2,694,081 Insurance Reimbursements & Other 124,695 - - - Earnings on Investments 14,323 10,298 10,298 10,324 Equipment Sales and Trade -ins 77,238 123,240 168,240 203,550 Total Revenue 2,852,944 2,970,002 3,015,002 2,907,955 Expenditures Salaries & Benefits 947,824 965,912 965,912 971,528 2% merit pool increase per year Operating, Maintenance & Contracts 1,013,185 1,244,911 1,244,911 1,186,873 3% annual increase Capital Outlay 612,152 784,500 1,082,928 1,035,400 Total Expenditures 2,573,161 2,995,323 3,293,751 3,193,801 Use of fund balance over a period of Revenue Over (Under) Expenditures 279,783 (25,321) (278,749) (285,846) years to offset annual increases Beginning Fund Balance 2,063,818 1,975,436 2,343,601 1,950,115 Ending Fund Balance $ 2,343,601 $ 1,950,115 $ 2,064,852 $ 1,664,269 11/16/2010 6 -I -3Y TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE DISPATCH SERVICES FUND 2009 2010 2010 2011 Actual Budget Amended Proposed Comments Revenue E911 Board Revenue $ 753,913 $ 754,108 $ 754,108 743,656 Interagency Charges 1,150,659 1,162,231 1,162,231 1,214,925 Town of Vail Interagency Charge 539,763 522,213 522,213 537,827 Earnings on Investments 7,946 5,000 5,000 7,500 Other 78,860 - 3,000 - Total Revenue 2,531,141 2,443,552 2,446,552 2,503,908 Expenditures Salaries & Benefits 1,691,378 1,854,062 1,854,062 1,849,958 Operating, Maintenance & Contracts 441,695 511,633 514,633 519,006 Capital Outlay 69,731 50,000 123,000 800,000 Radio Console project Total Expenditures 2,202,804 2,415,695 2,491,695 3,168,964 Revenue Over (Under) Expenditures 328,337 27,857 (45,143) (665,056) Beginning Fund Balance 962,344 1,048,694 1,290,681 1,245,538 Ending Fund Balance $ 1,290,681 $ 1,076,551 $ 1,245,538 $ 580,482 11/16/2010 6 - 1 - -* - TOWN OF VAIL 2011 BUDGET SUMMARY OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE CONFERENCE CENTER FUND 2009 2010 2011 Actual Budget Proposed Revenue Taxes Sales Tax Public Accomodations Tax Penalties and Interest on Delinquent Taxes Subtotal Taxes - - - Other Earnings on Investments 60,178 46,500 46,800 Total Revenue 60,178 46,500 46,800 Expenditures - General Government Management Fee - - - General Supplies and meetings Capital Outlay Total Expenditures - - - Revenue Over (Under) Expenditures 60,178 46,500 46,800 Beginning Fund Balance 9,264,476 9,324,654 9,371,154 Ending Fund Balance $ 9,324,654 $ 9,371,154 $ 9,417,954 HEALTH INSURANCE FUND 2009 2010 2011 Actual Budget Proposed Revenue Town of Vail Interagency Charge - Premiums $ 2,512,230 $ 2,510,000 $ 2,565,000 Employee Contributions 263,196 305,000 410,000 Insurer Proceeds 365,165 100,000 270,000 Earnings on Investments 10,465 5,000 10,000 Total Revenue 3,151,056 2,920,000 3,255,000 Expenditures Health Inusrance Premiums 321,081 365,000 360,000 Claims Paid 2,903,459 2,650,000 2,990,000 Short -term Disability Pay 24,811 35,000 35,000 Professional Fees 20,000 20,000 20,000 Total Expenditures 3,269,351 3,070,000 3,405,000 Revenue Over (Under) Expenditures (118,295) (150,000) (150,000) Beginning Fund Balance 1,339,460 1,221,165 1,071,165 Ending Fund Balance $ 1,221,165 $ 1,071,165 $ 921,165 11/16/2010 6 -1 -304- ORDINANCE NO. 17 SERIES OF 2010 ANNUAL APPROPRIATION ORDINANCE: ADOPTING A BUDGET AND FINANCIAL PLAN AND MAKING APPROPRIATIONS TO PAY THE COSTS, EXPENSES, AND LIABILITIES OF THE TOWN OF VAIL, COLORADO, FOR ITS FISCAL YEAR JANUARY 1, 2011 THROUGH DECEMBER 31, 2011 WHEREAS, in accordance with Article IX of the Charter of the Town of Vail, Colorado, the Town Manager prepared and submitted to the Town Council a proposed long -range capital program for the Town and a proposed budget and financial plan for all Town funds and activities for the fiscal year; and WHEREAS, it is necessary for the Town Council to adopt a budget and financial plan for the 2011 fiscal year, to make appropriations for the amounts specified in the budget; and NOW, THEREFORE, be it ordained by the Town Council of the Town of Vail, Colorado, that: 1. The procedures prescribed in Article IX of the Charter of the Town of Vail, Colorado, for the enactment hereof, have been fulfilled. 2. Pursuant to Article IX of the Charter, the Town Council hereby makes the following annual appropriations for the Town of Vail, Colorado, for its fiscal year beginning on the first day of January, 2011, and ending on the 31 st day of December, 2011: FUND AMOUNT General Fund 28,564,410 Capital Projects Fund 17,789,831 Real Estate Transfer Tax Fund 9,429,594 Vail Marketing Fund 316,100 Debt Service Fund 2,284,681 Heavy Equipment Fund 3,193,801 Health Insurance Fund 3,405,000 Dispatch Services Fund 3,168,964 Total 68,152,381 Less Interfund Transfers (8,412,180) Net Expenditure Budget 59,740,201 Ordinance No. 17, Series of 2010 11/16/2010 6 -1 -38 3. The Town Council hereby adopts the full and complete Budget and Financial Plan for the 2011 fiscal year for the Town of Vail, Colorado, which are incorporated by reference herein and made part hereof, and copies of said public records shall be made available to the public in the Municipal Building of the Town. This Ordinance shall take effect five (5) days after publication following the final passage hereof. 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 affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. 5. The Town Council hereby finds, determines, and declares that this ordinance is necessary and proper for the health, safety, and welfare of the Town of Vail and the inhabitants thereof. 6. The repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. 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, this 2nd day of November, 2010. A public hearing shall be held hereon on the 16th day of November, 2009, at 6:00 pm at the regular meeting of the Town Council of the Town of Vail, Colorado, in the Municipal Building of the Town. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 17, Series of 2010 11/16/2010 6 -1 -39 READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED IN FULL this 16th day of November 2010. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 17, Series of 2010 ll/16/2010 6 -1 -40 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: First Reading of Mill Levy Certification, Ordinance No. 20, Series 2010. PRESENTER(S): Kathleen Halloran ACTION REQUESTED OF COUNCIL: Approve Ordinance No. 20, Series 2010, on first reading. BACKGROUND: Mill Levy Assessments must be certified to the County for collection annually; this ordinance authorizes certification. STAFF RECOMMENDATION: Approve Ordinance No. 20, Series 2010, on first reading. ATTACHMENTS: Mil Levy 1 st 11/16/2010 Memorandum To: Town Council From: Kathleen Halloran Date: November 16, 2010 Subject: Mil Levy Ordinance You will be asked to approve the attached mil levy ordinance upon first reading on Tuesday evening. This ordinance authorizes the collection of property taxes in 2011 based upon 2010 assessed valuations of property within the town's boundaries. Eagle County is responsible for assessing values and for collecting property taxes on our behalf. The town is required by Colorado state law to certify the mil levy by December 15 of each year. Since two readings of an ordinance are required, we will bring the first reading on Tuesday and the second reading on December 7th to enable us to meet the December 15 date. The attached ordinance is based on preliminary assessed valuations from the county (as of August, 2010). The town's base mil levy as shown in the ordinance is 4.69 mils and the abatement levy is .036 mils. Abatement results when a taxpayer protests an assessed valuation after the normal protest period and is refunded a portion of the tax already due or paid. The abatement mil levy allows the town to recoup the refunded amount. This abatement levy of .036 mils equates to an additional $2.85 per year for a $1 million home. The property tax authorized by the attached ordinance will generate $4.91 million in revenue in 2011, representing approximately 11 % of the town's total revenue. 11/16/2010 7 -1 -1 ORDINANCE NO. 20 SERIES OF 2010 AN ORDINANCE PROVIDING FOR THE LEVY ASSESSMENT AND COLLECTION OF TOWN AD VALOREM PROPERTY TAXES DUE FOR THE 2010 TAX YEAR AND PAYABLE IN THE 2011 FISCAL YEAR. WHEREAS, it is necessary for the Town Council to provide for the levy, assessment and collection of Town ad valorem property taxes due for the 2010 year and payable in the 2011 fiscal year. NOW, THEREFORE, be it ordained by the Town Council of the Town of Vail, Colorado, that: 1. For the purpose of defraying part of the operating and capital expenses of the Town of Vail, Colorado, during its 2011 fiscal year, the Town Council hereby levies a property tax of 4.73 mills upon each dollar of the total assessed valuation of $1,039,405,950 for the 2010 tax year of all taxable property within the Town, which will result in a gross tax levy of $4,911,921 calculated as follows: Base mill levy 4.690 $4,874,814 Abatement levy .036 37,107 Total mill levy 4.730 $4,911,921 Said assessment shall be duly made by the County of Eagle, State of Colorado, as directed by the Colorado Revised Statutes (1973 as amended), and as otherwise required by law. 2. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. 3. The Town Council hereby finds, determines, and declares that this ordinance is necessary and proper for the health, safety, and welfare of the Town of Vail and the inhabitants thereof.. Ordinance 20, Series of 2010 11/16/2010 7 -1 -2 4. The repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. 5. 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, this 16th day of November, 2010. A public hearing shall be held hereon at 6 P.M. on the 7th day of December, 2010, at the regular meeting of the Town Council of the Town of Vail, Colorado, in the Municipal Building of the Town. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance 20, Series of 2010 11/16/2010 7 -1 -3 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: An appeal, pursuant to Section 12 -3 -3, Appeals, Vail Town Code, of an administrative action, affirmed by the Town of Vail Planning and Environmental Commission, approving a request for a minor amendment to Special Development District No. 6, Village Inn Plaza, pursuant to Section 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for modifications to the approved development plans to increase site coverage and reduce the side setback (east side) to facilitate an expanded chimney for a new restaurant, located at 100 East Meadow Drive, Unit 602/ Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC100044) PRESENTER(S): Rachel Dimond, Michael Suman, representative of the appellant ACTION REQUESTED OF COUNCIL: The Vail Town Council shall uphold, overturn, or modify the approval of the minor amendment to Special Development District No. 6. BACKGROUND: On June 9, 2010, a minor amendment to SDD No. 6, Village Inn Plaza, was administratively approved and upheld at the June 28, 2010 PEC hearing. The minor amendments included expansion to site coverage and a reduction in the side setback to accommodate a new hibachi restaurant. On September 23, 2010, a second minor amendment was administratively approved and upheld at the October 11, 2010 PEC hearing. The amendment included further increase to site coverage and a reduction in the side setback to allow for the addition of access ladders to the approved chimney chases to meet building code requirements for access and maintenance of rooftop mechanical equipment. ATTACHMENTS: Appeal SDD 6 Memo 111610 Appeal SDD 6- Appellant Submittal SDD 6 Minor Amendment Approval Docs PEC Minutes 101110 11/16/2010 MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: November 16, 2010 SUBJECT: An appeal, pursuant to Section 12 -3 -3, Appeals, Vail Town Code, of an administrative action, affirmed by the Town of Vail Planning and Environmental Commission, approving a request for a minor amendment to Special Development District No. 6, Village Inn Plaza, pursuant to Section 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for modifications to the approved development plans to increase site coverage and reduce the side setback (east side) to facilitate an expanded chimney for a new restaurant, located at 100 East Meadow Drive, Unit 602/ Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC100044) Appellant: Solaris Property Owner, LLC Planner: Rachel Dimond I. SUMMARY The appellant, Solaris Property Owner, LLC, is appealing the administrative approval of a minor amendment to Special Development District No. 6, Village Inn Plaza. The minor amendment, affirmed by the Planning and Environmental Commission at their October 11, 2010 hearing, allowed for an increase in site coverage and decrease in the side setback to facilitate expanded chimney for a new restaurant. This was the second minor amendment approved to facilitate expanded floor area and chimneys for the restaurant. The appellant is requesting that the Vail Town Council place conditions on the application to require a study and subsequent relocation of exhaust terminations as far west of Solaris as possible, and also require a scrubber be installed in the mechanical system to reduce potential smoke and fumes from the exhaust. II. SUBJECT PROPERTY The subject property is located at 100 East Meadow Drive, Unit 602/ Lot O, Block 5D, Vail Village Filing 1. III. STANDING OF APPELLANT Pursuant to Section 12 -3 -3, Appeals, Vail Town Code, Solaris Property Owner, LLC, has standing as an appellant because they are an adjacent property owner to the subject property. IV. CRITERIA AND FINDINGS The criteria for review and findings for approval of a minor amendment to a special development district 12 -9A -8: DESIGN CRITERIA AND NECESSARY FINDINGS: A. Criteria: The following design criteria shall be used as the principal criteria in evaluating the merits of the proposed special development district. It shall be the burden of the applicant 11/16/201 8 -1 -I to demonstrate that submittal material and the proposed development plan comply with each of the following standards, or demonstrate that one or more of them is not applicable, or that a practical solution consistent with the public interest has been achieved: 1. Compatibility: Design compatibility and sensitivity to the immediate environment, neighborhood and adjacent properties relative to architectural design, scale, bulk, building height, buffer zones, identity, character, visual integrity and orientation. 2. Relationship: Uses, activity and density which provide a compatible, efficient and workable relationship with surrounding uses and activity. 3. Parking And Loading: Compliance with parking and loading requirements as outlined in chapter 10 of this title. 4. Comprehensive Plan: Conformity with applicable elements of the Vail comprehensive plan, town policies and urban design plans. 5. Natural And /Or Geologic Hazard: Identification and mitigation of natural and /or geologic hazards that affect the property on which the special development district is proposed. 6. Design Features: Site plan, building design and location and open space provisions designed to produce a functional development responsive and sensitive to natural features, vegetation and overall aesthetic quality of the community. 7. Traffic: A circulation system designed for both vehicles and pedestrians addressing on and off site traffic circulation. 8. Landscaping: Functional and aesthetic landscaping and open space in order to optimize and preserve natural features, recreation, views and function. 9. Workable Plan: Phasing plan or subdivision plan that will maintain a workable, functional and efficient relationship throughout the development of the special development district. B. Necessary Findings: Before recommending and /or granting an approval of an application for a special development district, the planning and environmental commission and the town council shall make the following findings with respect to the proposed SDD: 1. That the SDD complies with the standards listed in subsection A of this section, unless the applicant can demonstrate that one or more of the standards is not applicable, or that a practical solution consistent with the public interest has been achieved. 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. V. REQUIRED ACTION The Vail Town Council shall uphold, overturn, or modify the approval of the minor amendment to Special Development District No. 6. Should the Vail Town Council wish to uphold the approval, Staff recommends the Vail Town Council make the following motion: "The Vail Town Council upholds an administrative action, affirmed by the Town of Vail Planning and Environmental Commission, approving a request for a minor amendment to Special Development District No. 6, Village Inn Plaza, pursuant to Section 12- 9A -10, 11/16/204) 8 -1 -2 Amendment Procedures, Vail Town Code, to allow for modifications to the approved development plans to increase site coverage and reduce the side setback (east side) to facilitate an expanded chimney for a new restaurant, located at 100 East Meadow Drive, Unit 6021 Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. " Should the Vail Town Council wish to uphold the approval, Staff recommends the Vail Town Council make the following findings: "Pursuant to Section 12- 3 -3 -05, the Vail Town Council finds, in accordance with the Vail Town Code, that the approval ensure that the requirements of the Zoning Regulations and the obligations required of the prior approvals have been met and /or will be met VI. ATTACHMENTS 1. Appeal Form and Supporting Documentation from the Appellant 2. Minor Amendment SDD approval letter dated September 23, 2010 3. PEC minutes from October 11, 2010 hearing I v16/20a) 8 -1 -3 Appeals Form Department of Community Development TOWN ����, & 75 South Frontage Road., Vail, Colorado 81657 tel: 970.479.2139 fax: 970.479.2452 web: www.vaiiaov.com General Information: This form is required for filing an appeal of a Staff, Design Review Board, or Planning and Environmental Commission action /decision. A complete form and associated requirements must be submitted to the Community Development Department within twenty (20) calendar days of the disputed action/decision. Action /Decision being appealed: k y or A t9e SAW Y -C.fto +' A [ C t Dateof Action/ Decision; 6SNer' Board or Staff person rendering action /decision: I r/ e, Does this appeal Involve a specific parcel of land? Oyes' ,� (no) If yes, are you an adjacent property owner? es (no) Name of Appellant(s): 4 k4lev. e Mailing Address: f F'K Ivy tqqa Phone: 114 •ra Physical Address in Vail: G Legal Description of Appellant(s) Property in Vail Lot:FBlock: Subdivision: VAit Vi14 t t1,JfA-J I Appellant(s) Signature(s (Attach a list of signatures if more space is required). Submittal Requirements: 1. On a separate sheet or separate sheets of paper, provide a detailed explanation of how you are an "aggrieved or adversely affected person ". 2. On a separate sheet or separate sheets of paper, specify the precise nature of the appeal. Please cite specific code sections having relevance to the action being appealed. 3. Provide a list of names and addresses (both mailing and physical addresses in Vail) of all owners of property who are the subject of the appeal and all adjacent property owners (including owners whose properties are separated from the subject property by a right -of -way, stream, or other intervening barrier). 4. Provide stamped, addressed envelopes for each property owner listed in (1). PLEASE SUBMIT THIS FORM AND ALL SUBMITTAL REQUIREMENTS TO: TOWN OF VAIL, DEPARTMENT OF COMMUNITY DEVELOPMENT, 75 SOUTH FRONTAGE ROAD, VAIL, COLORADO 81657. For Office Use Only: Date Received: ©1 1 C� ' 0 Activity No.: Planner: L Project No.: P K7-T I o° o as i F:\ cdev\ FORMS\P \PER \Plannni \Ap lications \Appeals.doc 12 -6 -2005 D OCT 2 9 2010 11/16/2010 TOWN OF VAIL 8 -2- 1 SUMAN ARCHITECTS November 1, 2010 Vail Town Council 75 South Frontage Road Vail, Colorado 81657 Re: Woo Restaurant 100 East Meadow Drive Lot O, Block 5D Vail Village Filing 1 Ladies and Gentlemen: As Director of Design for Solaris, I would like to express a major concern regarding the negative impacts the Woo Restaurant application poses on the Solaris property. During the Solaris redevelopment process, Solaris devoted significant time and money to ensure the garage, kitchen and mechanical exhaust was moved to the east side of the Solaris property or away for the VVI property. We feel the same efforts should be required of any new modifications to the adjacent VVI properties. As currently designed, the kitchen hood vent termination is located on the east side of the VVI building with little consideration of its proximity to the Solaris residences nearby. The applicant should be required to study options that would relocate the vent termination farther to the west. In addition, we feel that it is imperative the design include an ultraviolet burner system or "scrubber" that would mitigate the impact of any exhaust emissions. Therefore, it is Solaris' request that during your review of the Woo Restaurant application, the applicant be required to: 1. Provide further studies showing the exhaust termination as far west of the shared Solaris property line as possible. 2. Incorporate an ultraviolet burner system or equivalent "scrubber" in the mechanical system. Thank you for your consideration. Sincerely, Michael Suman AIA Inichael (f!'sinnanarchi tects.com 2211 North Frontage Road o 970.479.7502 Suite A f 970.479.7511 Vail, CO 81657 rn 970.471.6122 11/16/2010 8.2.2 SU AN ARCHITECTS Subject of the Appeal: Joseph Staufer 100 East Meadow Drive, #31 Vail, CO 81657 John Martin Martin Manley Architects PO Box 4701 Eagle, CO 81631 Adjacent Addresses: Town of Vail FINANCE DEPT 75 S FRONTAGE RD VAIL, CO 81657 HIBBERD, FRED, JR 400 NW RIDGE RD JACKSON, WY 83001 VAIL CORE CONDOMINIUM ASSOCIATION, INC. Vail Tax & Accounting, Inc. P O BOX 5940 AVON, CO 81620 VILLAGE CENTER ASSOCIATION PO Box 5968 Vail, CO 81658 VAIL DOVER ASSOCIATES LLC 4148 N ARCADIA DR PHOENIX, AZ 85018 TALISMAN CONDO ASSOC. W. THOMAS SAALFELD 62 E MEADOW DR VAIL, CO 81657 SONNENALP PROPERTIES INC 20 VAIL RD VAIL, CO 81657 VAIL VILLAGE PLAZA CONDOMINIUM ASSOCIATION c/o Abplanalp Law Office LLC, Post Office Box 2800 Vail, CO 81658, United States VILLAGE INN PLAZA CONDOMINIUM ASSOCIATION JOSEF STAUFER 100 E MEADOW DR #31 VAIL, CO 81657, United States VILLAGE INN PLAZA -PHASE V CONDOMINIUM ASSOCIATION 100 EAST MEADOW DRIVE STE 31 VAIL, CO 81657 michael Ci%sumanarchi tccts.com 2211 North Frontage Road o 970.479.7502 Suite A f 970.479.7511 Vail, CO 81657 m 970.471.6122 11/16/2010 8 -2 -3 SUMAN A R C H I T E C T S VILLAGE INN PLAZA CONDOMINIUM COLORADO REGISTRATION, INC. 880 HOMESTEAD DRIVE, NO. 25 EDWARDS, CO 81632 VILLAGE INN PLAZA -PHASE V CONDOMINIUM ASSOCIATION COLORADO REGISTRATION, INC 880 HOMESTEAD DRIVE NO. 25 EDWARDS, CO 81632 VILLAGE INN PLAZA -PHASE V CONDOMINIUM ASSOCIATION COLORADO REGISTRATION, INC PO BOX 666 VAIL, CO 81658 VILLAGE INN PLAZA CONDOMINIUM ASSOCIATION COLORADO REGISTRATION, INC. POST OFFICE BOX 666 VAIL, CO 81658 VAIL VILLAGE PLAZA CONDOMINIUM ASSOCIATION 143 E. MEADOW DRIVE NO. 360 C/O SLIFER MANAGEMENT CO VAIL, CO 81657 VAIL VILLAGE PLAZA CONDOMINIUM ASSOCIATION SALLY HANLON 385 GORE CREEK DRIVE- NO. R -2 VAIL, CO 81657 AUSTRIA HAUS CONDO ASSOC INC 242 E Meadow Dr. VAIL, CO 81657 Ann Bishop Vail Village Inn Phase III Assoc PO Box 820 Vail, CO 81658 SOLARIS 2211 NORTH FRONTAGE ROAD, SUITE A VAIL, CO 81657 michael Cksumanarchitects.com 2211 North Frontage Road o 970.479.7502 Suite A f 970.479.7511 Vail, CO 81657 m 970.471.6122 11/16/2010 8 -2 -4 4. OH i , Department of 'Coninutnity Development 75 Sonth Frontage Road Vail, CO 81657 PH: 970 - 479 -2138 FAX. 970- 479 -2452 www. vailgov. com September 23, 2010 Town of Vail Planning and Environmental Commission Joseph Staufer 100 East Meadow Drive, #31 Vail, CO 81657 John Martin Martin Manley Architects PO Box 4701 Eagle, CO 81631 Adjacent Property Owners Re: Report to the Planning and Environmental Commission of an administrative action approving a request for a minor amendment to SDD No. 6, Village Inn Plaza, pursuant to Section 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for modifications to the approved development plans to increase site coverage and reduce the side setback (east side) to facilitate an expanded chimney for a new restaurant, located at 68 East Meadow Drive, Unit 602/ Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC100044) Applicant: Joe Staufer, represented by John G. Martin, Architect Planner: Rachel Friede Dear PEC members, Mr. Staufer, Mr. Martin, and adjacent property owners: The purpose of this letter is to inform you that Town of Vail Staff has approved, with conditions, a minor amendment to Special Development District No. 6, Village Inn Plaza. The applicant is proposing the following minor amendments to SDD No. 6, Village Inn Plaza, which will occur at Building Two of Phase III: • Addition of 33 square feet to a chimney and addition of 53 square feet to an approved mechanical room on northeast side of building, which is a 86 square foot addition of site coverage and a reduction of the side setback The proposed chimney expansion is part of a previously approved amendment to the Special Development District. The approved restaurant is currently under construction and will include six, built -in hibachi tables, a sushi bar, a liquor bar, general table seating and a large commercial kitchen. The attached plans, dated September 16, 2010, highlight changes to the approved chimney and mechanical room. The increase in area is caused by the need for access to the rooftop mechanical systems, and the chimneys will now have adjacent enclosed ladder systems for this purpose. Additional plans are on file at the Department of Community Development. There will be subsequent Design Review applications and approvals required to affect the request found in this proposal. 11/16/20k) -3 -1 Staff finds that approval of this minor amendment request meets the criteria in Section 12 -9A -8, Vail Town Code. The amendment does not alter the basic intent and character of Special Development District No. 6, Village Inn Plaza. The proposal calls for a slight increase in site coverage and decrease in setback, but will not alter the character or basic intent of the SDD. The setback reduction will occur eight feet above grade for a chimney. The amendment will continue to be compatible with the neighborhood and other uses. There is no change in the total number of condominiums, no addition in the amount of allowable gross residential floor area, and all exterior changes associated with this proposal shall receive Design Review Board review and approval and subsequent Building Permit review and approval for compliance with all standards and requirements. Staff's approval of this minor special development district amendment will be reported at a public hearing before the Town of Vail Planning and Environmental Commission on Monday, October 11, 2010, at 1:00 p.m. in the Vail Town Council Chambers, located at 75 South Frontage Road. The Planning and Environmental Commission reserves the right to "call up" this staff decision for additional review at this hearing. Pursuant to Section 12- 9A -10, Vail Town Code, appeals of staff decisions may be filed by adjacent property owners, owners of property within the special development district, the applicant, Planning and Environmental Commission members or members of the Town Council as outlined in Section 12 -3 -3, Appeals, Vail Town Code. Should you have any questions, please do not hesitate to contact me at 970 - 479 -2440. Sincerely, Rachel Friede Dimond, AICP, LEED AP Town Planner Attachment: Supporting documents dated September 16, 2010 11/16/209) 8 -3 -2 EXISTING BUILDING - PHOTOS EXTERIOR IMPROVEMENTS ZONING SUMMARY PROJECT DESCRIPTION SHEET INDEX IN I ­ER ElEET ITE 11N I REEITE—l—E—N . .......... .. I LI-EEIIIE-1-11 k 11 REETR ... IT— I EILE E I .......... E III I ELE I 1. H I EEITI.N E EIT11111I.NE; EllE L a . ITII I I N� ; NE­H� ­LL NE-LI VICINITY MAP 'E "wa %gzll N V NE-1-1— i �-"711 NE. 111—El ta� ­IL t Jz .E 0 .N AREA SUMMARY 5,o 11 El 'If SF THE E—L RET L ON ­EF REIARLI'12II&ANN'T E z , T1 L k Q o 2-,o CODE SUMMARY o o.--, cl) w Ell, EEo G Ef z2 ... RIIAL F­R AREA 2 z IH (D E I NE. ITIMEI NE. REEll.NT EPAIE INTERI.R ElH EPAIE El R .ER - gA,- 101 EF EF L EIIHNINNNEPAR.— .. E­ �2 10 1,1�nLozo�EL r ° ° (((( a \1' ' CH C NEY N- SHE - - a IPPER IEIEI FF ° ANEE�EE �NE °A -- �CwER�E�E� —NE—N-- 3 a a a F z wo �aF Z �W ❑� O�wO NE' C mNEYECa - L •.. r�.o.� O O J o co VJ � ❑LL NE. ECH o W ER ECH IMNEY �. �.�.- _ Nr w Y p ❑ n �� nor � ❑ LL �a O KZ2 �?N — _ - - - - - - - - - LEI EL - - - - - - F lo off^ =.wu� w C -- - - - - - W..°� _ - - R; o �E N V LE W — = — — — ;o No °5 Attachment C PLANNING AND ENVIRONMENTAL COMMISSION (IN PART) October 11, 2010 O 1:OOpm �(1WN TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 MEMBERS PRESENT MEMBERS ABSENT John Rediker Michael Kurz David Viele Tyler Schneidman Bill Pierce Henry Pratt Luke Cartin 30 minutes Report to the Planning and Environmental Commission of an administrative action approving a request for a minor amendment to SDD No. 6, Village Inn Plaza, pursuant to Section 12- 9A -10, Amendment Procedures, Vail Town Code, to allow for modifications to the approved development plans to increase site coverage and reduce the side setback (east side) to facilitate expanded an expanded chimney for a new restaurant, located at 68 East Meadow Drive, Unit 602/ Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC100044) Applicant: Joe Staufer, represented by John G. Martin, Architect Planner: Rachel Friede ACTION: Upheld Staff's Approval Rachel Friede made a presentation per the Staff memorandum. John Martin, representative of the applicant, made a brief presentation. Michael Suman, representing the Solaris Property Owners, outlined the concern of his client, specifically noting that more studies should be done to reduce potential negative effects of the cooking exhaust. He asked that the application be called -up and discussed at a later date to allow for further studies and discussions with the applicant. John Martin responded that the applicant has studied this restaurant and all of the options for exhausting the cooking appliances. The only three locations where chimneys and exhaust venting could occur is where they are being proposed today. He stated that a scrubber, as suggested by the applicant, would be the size of a small truck, and without taking up restaurant space, the scrubber would have to be located outside of the building. He further stated that there may not be any exterior location for the scrubber. He stated that a better filtration system could be utilized to eliminate smoke and ash from the cooking exhaust vents. Rick Woo, the owner of the proposed restaurant, stated that they are here today to expand the chimney chaise for expanded access for maintenance and fire department access. He said that the mixed use aspect of the neighborhood should allow for restaurants to be near residential. He said the north side exhaust fan is 120 feet from Solaris. The south side exhaust fan is 110 feet from Solaris. The only concern is the east exhaust, which is 40 feet from the Solaris building. There is a big line of trees between Solaris and the east exhaust fan that will create a barrier between the two properties. He said the wind primarily blows through the alley between Solaris and Village Inn Plaza and would blow the smoke towards Meadow Drive. He added that the Japanese kitchens are very clean, and most of the prep work and cooking will occur at the front Pa 1 1 1/1 6120 1 0 8 -4 -1 of the house. There will be very limited deep frying and will decrease the amount of use of the venting on the east side of the building. Jonathan Staufer, owner of the commercial space and manager for the building, stated that Rick Woo wants to be a good neighbor. He said that they can get together with Solaris to create a good working relationship to problem solve any issues that arise. Michael Suman stated that the Solaris is in favor of additional site coverage for a scrubber to treat the exhaust venting if that were necessary.. Commissioner Rediker asked why the issue of negative exhaust impacts came up now and not with the previous minor amendment. Rachel Friede explained that the concern was raised by the Solaris development only in conjunction with this notification. Commissioner Pratt stated that from a zoning perspective, there is no issue. However, from a neighbor issue, there are some potential problems. The Commissioners confirmed staff's administrative approval confirming that the criteria had been met and did not call up the action for discussion. Page 2 1 1/1 6120 1 0 8 -4 -2 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: November 16, 2010 ITEM /TOPIC: Resolution No. 28, Series of 2010, a Resolution Approving an Intergovernmental Agreement Between the Town of Vail and the Colorado Department of Transportation Regarding Matterhorn Bridge Replacement; and Setting Forth Details in Regard Thereto. PRESENTER(S): Chad Salli ACTION REQUESTED OF COUNCIL: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with CDOT. BACKGROUND: The Town has been awarded a federal grant for the replacement of the Matterhorn Bridge which is shown in the bridge inspection reports as structurally deficient. At a total project cost of $1,035,000, the bridge grant award total is 80% of the project total or $828,000. The Town is responsible for a 20% local match of the total estimated project costs. This IGA is for the design phase of the project. STAFF RECOMMENDATION: Approve the IGA, and authorize the Town Manager to sign and enter into the IGA with CDOT. ATTACHMENTS: Resolution No. 28, Series of 2010 CDOT IGA 11/16/2010 RESOLUTION NO. 28 Series of 2010 A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF VAIL AND THE COLORADO DEPARTMENT OF TRANSPORTATION REGARDING MATTERNHORN BRIDGE REPLACEMENT; 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 currently has budgeted the required local match; and WHEREAS, the Federal Highway Administration (the "FHWA ") allocates funds for local transportation projects; and WHEREAS, the Town is requesting FHWA funds for the design of the Matterhorn Bridge replacement (the "Project"); and WHEREAS, the Colorado Department of Transportation ( "CDOT ") is responsible for the general administration and supervision of performance by the Town for the Project: and WHEREAS, the Town and CDOT wish to enter into an Intergovernmental Agreement (the "IGA') authorizing the design of the Project; and WHEREAS, the Council finds and determines that IGA is necessary and will promote the health, safety, morals, and general welfare of the Town; and WHEREAS, the Council's approval of Resolution No. 28, Series 2010, is required to enter into an IGA. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council hereby approves the IGA and authorizes the Town Manager to enter into the IGA with CDOT, in substantially the same form as attached hereto as Exhibit A and in a form approved by the Town Attorney. 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 16 day of November, 2010. Richard Cleveland, Town Mayor ATTEST: Lorelei Donaldson, Town Clerk Resolution No. 28, Series of 2010 11/16/2010 9 -1 -1 (FMLAWRK) PROJECT BRO M306 -005 (18033) Contract Routing # 11 HA3 25016 REGION 3 /(DAW) ID # 33100375 STATE OF COLORADO Department of Transportation Interagency Agreement (IGA) with the Town of Vail CDOT Vendor # 2000003 MATTERHORN BRIDGE REPLACEMENT Project # BR M306 -005 (18033) TABLE OF CONTENTS 1. PARTIES ........................................................................................................... ..............................2 2. EFFECTIVE DATE AND NOTICE OF NONLIABILITY ...................................... ............................... 2 3. RECITALS ......................................................................................................... ..............................2 4. DEFINITIONS .................................................................................................... ..............................2 5. TERM and EARLY TERMINATION .................................................................. ............................... 3 6. SCOPE OF WORK ........................................................................................... ............................... 3 7. OPTION LETTER MODIFICATION .................................................................... ..............................7 8. PAYMENTS ....................................................................................................... ..............................8 9. ACCOUNTING ............................................................................................... ............................... 10 10. REPORTING - NOTIFICATION .................................................................... ............................... 10 11. LOCAL AGENCY RECORDS ......................................................................... .............................11 12. CONFIDENTIAL INFORMATION -STATE RECORDS ................................... ............................... 12 13. CONFLICT OF INTEREST ........................................................................... ............................... 12 14. REPRESENTATIONS AND WARRANTIES .................................................. ............................... 12 15. INSURANCE ................................................................................................ ............................... 13 16. DEFAULT - BREACH ..................................................................................... ............................... 14 17. REMEDIES ................................................................................................... ............................... 14 18. NOTICES and REPRESENTATIVES ............................................................ ............................... 16 19. RIGHTS IN DATA, DOCUMENTS, AND COMPUTER SOFTWARE ............. ............................... 17 20. GOVERNMENTAL IMMUNITY ..................................................................... ............................... 17 21. STATEWIDE CONTRACT MANAGEMENT SYSTEM .................................. ............................... 17 22. FEDERAL REQUIREMENTS ........................................................................ ............................... 18 23. DISADVANTAGED BUSINESS ENTERPRISE (DBE) .................................. ............................... 18 24. DISPUTES .................................................................................................... ............................... 18 25. GENERAL PROVISIONS ............................................................................. ............................... 18 26. COLORADO SPECIAL PROVISIONS .......................................................... ............................... 21 27. SIGNATURE PAGE ........................................................................................ .............................23 28. EXHIBIT A - SCOPE OF WORK .................................................................... ............................... 1 29. EXHIBIT B - LOCAL AGENCY RESOLUTION ............................................... ............................... 1 30. EXHIBIT C -FUNDING PROVISIONS ........................................................... ............................... 1 31. EXHIBIT D - OPTION LETTER ...................................................................... ............................... 1 32. EXHIBIT E - LOCAL AGENCY CONTRACT ADMINISTRATION CHECKLIST ............................. 1 33. EXHIBIT F - CERTIFICATION FOR FEDERAL -AID CONTRACTS ................ ............................... 1 34. EXHIBIT G - DISADVANTAGED BUSINESS ENTERPRISE ......................... ............................... 1 35. EXHIBIT H - LOCAL AGENCY PROCEDURES FOR CONSULTANT SERVICES ........................ 2 36. EXHIBIT I - FEDERAL -AID CONTRACT PROVISIONS ................................. ............................... 1 37. EXHIBIT J - FEDERAL REQUIREMENTS ..................................................... ............................... 1 11/16/2010 9 -2 -1 1. PARTIES THIS AGREEMENT is entered into by and between, the STATE OF COLORADO acting by and through the Department of Transportation (hereinafter called the "State" or "CDOT ") and the Town of Vail (hereinafter called the "Local Agency "). 2. EFFECTIVE DATE AND NOTICE OF NONLIABILITY. This Agreement shall not be effective or enforceable until it is approved and signed by the Colorado State Controller or their designee (hereinafter called the "Effective Date "). The State shall not be liable to pay or reimburse the Local Agency for any performance hereunder, including, but not limited to costs or expenses incurred, or be bound by any provision hereof prior to the Effective Date. 3. RECITALS A. Authority, Appropriation, And Approval Authority exists in the law and funds have been budgeted, appropriated and otherwise made available and a sufficient unencumbered balance thereof remains available for payment and the required approval, clearance and coordination have been accomplished from and with appropriate agencies. i. Federal Authority Pursuant to Title I, Subtitle A, Section 1108 of the "Transportation Equity Act for the 21s Century" of 1998 (TEA -21) and /or the "Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users" (SAFETEA -LU) of 2005 and to applicable provisions of Title 23 of the United States Code and implementing regulations at Title 23 of the Code of Federal Regulations, as may be amended, (collectively referred to hereinafter as the "Federal Provisions "), certain federal funds have been and are expected to continue to be allocated for transportation projects requested by the Local Agency and eligible under the Surface Transportation Improvement Program that has been proposed by the State and approved by the Federal Highway Administration ( "FHWA "). ii. State Authority Pursuant to CRS §43 -1 -223 and to applicable portions of the Federal Provisions, the State is responsible for the general administration and supervision of performance of projects in the Program, including the administration of federal funds for a Program project performed by a Local Agency under a contract with the State. This Agreement is executed under the authority of CRS § §29 -1 -203, 43 -1 -110; 43 -1 -116, 43- 2- 101(4)(c) and 43 -2 -14. B. Consideration The Parties acknowledge that the mutual promises and covenants contained herein and other good and valuable consideration are sufficient and adequate to support this Agreement. C. Purpose The purpose of this Agreement is for the distribution of federal funds for the design and construction of the Matterhorn Bridge replacemnet Project # BRO M306 -005 (18033) Fed $ LA Match with the town of Vail performing the work. D. References All references in this Agreement to sections (whether spelled out or using the § symbol), subsections, exhibits or other attachments, are references to sections, subsections, exhibits or other attachments contained herein or incorporated as a part hereof, unless otherwise noted. 4. DEFINITIONS The following terms as used herein shall be construed and interpreted as follows: A. Agreement or Contract "Agreement" or "Contract" means this Agreement, its terms and conditions, attached exhibits, documents incorporated by reference under the terms of this Agreement, and any future modifying agreements, exhibits, attachments or references that are incorporated pursuant to Colroado State Fiscal Rules and Policies. 11 / P 1 a ? 2of23 9 -2 -2 B. Agreement Funds "Agreement Funds" means funds payable by the State to Local Agency pursuant to this Agreement. C. Budget "Budget" means the budget for the Work as contained in Exhibit C. D. Consultant and Contractor "Consultant" means a professional engineer or designer hired by Local Agency to design the Work and "Contractor" means the general construction contractor hired by Local Agency to construct the Work. E. Evaluation "Evaluation" means the process of examining the Local Agency's Work and rating it based on criteria established in §6 and Exhibits A and E. F. Exhibits and Other Attachments The following exhibit(s) are attached hereto and incorporated by reference herein: Exhibit A (Scope of Work), Exhibit B (Resolution), Exhibit C (Funding Provisions), Exhibit D (Option Letter), Exhibit E (Checklist), Exhibit F (Certification for Federal -Aid Funds), Exhibit G (Disadvantaged Business Enterprise), Exhibit H (Local Agency Procedures), Exhibit I (Federal - Aid Contract Provisions) and Exhibit J (Federal Requirements). G. Goods "Goods" means tangible material acquired, produced, or delivered by the Local Agency either separately or in conjunction with the Services the Local Agency renders hereunder. H. Oversight "Oversight" means the term as it is defined in the Stewardship Agreement between CDOT and the Federal Highway Administration ( "FHWA ") and as it is defined in the Local Agency Manual. I. Party or Parties "Party" means the State or the Local Agency and "Parties" means both the State and the Local Agency J. Work Budget Work Budget means the budget as contained in Exhibit C. K. Services "Services" means the required services to be performed by the Local Agency pursuant to this Contract. L. Work "Work" means the tasks and activities the Local Agency is required to perform to fulfill its obligations under this Contract and Exhibits A and E, including the performance of the Services and delivery of the Goods. M. Work Product "Work Product" means the tangible or intangible results of the Local Agency's Work, including, but not limited to, software, research, reports, studies, data, photographs, negatives or other finished or unfinished documents, drawings, models, surveys, maps, materials, or work product of any type, including drafts. 5. TERM and EARLY TERMINATION. The Parties' respective performances under this Agreement shall commence on the Effective Date. This Agreement shall terminate 5years from Effective date, unless sooner terminated or completed as demonstrated by final payment and final audit. 6. SCOPE OF WORK A. Completion The Local Agency shall complete the Work and other obligations as described herein in the Exhibit A Scope of Work or Form 463. Work performed prior to the Effective Date or after final acceptance shall not be considered part of the Work. 11 / P 1 a T 3of23 9 -2 -3 B. Goods and Services The Local Agency shall procure Goods and Services necessary to complete the Work. Such procurement shall be accomplished using the Contract Funds and shall not increase the maximum amount payable hereunder by the State. C. Employees All persons employed hereunder by the Local Agency, or any Consultants or Contractor shall be considered the Local Agencys', Consultants' or Contractors' employee(s) for all purposes and shall not be employees of the State for any purpose. D. State and Local Agency Committments i. Design If the Work includes preliminary design or final design or design work sheets, or special provisions and estimates (collectively referred to as the "Plans "), the Local Agency shall comply with and be responsible for satisfying the following requirements: a) Perform or provide the Plans to the extent required by the nature of the Work. b) Prepare final design in accordance with the requirements of the latest edition of the American Association of State Highway Transportation Officials (AASHTO) manual or other standard, such as the Uniform Building Code, as approved by the State. c) Prepare provisions and estimates in accordance with the most current version of the State's Roadway and Bridge Design Manuals and Standard Specifications for Road and Bridge Construction or Local Agency specifications if approved by the State. d) Include details of any required detours in the Plans in order to prevent any interference of the construction Work and to protect the traveling public. e) Stamp the Plans produced by a Colorado Registered Professional Engineer. f) Provide final assembly of Plans and all other necessary documents. g) Be responsible for the Plans' accuracy and completness. h) Make no further changes in the Plans following the award of the construction contract to Contractor unless agreed to in writing by the Parties. The Plans shall be considered final when approved in writing by CDOT and when final they shall be incorporated herein. ii. Local Agency Work a) The Local Agency shall comply with the requirements of the Americans With Disabilities Act (ADA), and applicable federal regulations and standards as contained in the document "ADA Accessibility Requirements in CDOT Transportation Projects ". b) The Local Agency shall afford the State ample opportunity to review the Plans and make any changes in the Plans that are directed by the State to comply with FHWA requirements. c) The Local Agency may enter into a contract with a Consultant to perform all or any portion of the Plans and /or of construction administration. Provided, however, if federal -aid funds are involved in the cost of such Work to be done by such Consultant, such Consultant contract (and the performance /provision of the Plans under the contract) must comply with all applicable requirements of 23 C.F.R. Part 172 and with any procedures implementing those requirements as provided by the State, including those in Exhibit H. If the Local Agency enters into a contract with a Consultant for the Work: (1) The Local Agency shall submit a certification that procurement of any Consultant contract complies with the requirements of 23 C.F.R. 172.5(1) prior to entering into such Consultant contract, subject to the State's approval. If not approved by the State, the Local Agency shall not enter into such Consultant contract. (2) The Local Agency shall ensure that all changes in the Consultant contract have prior approval by the State and FHWA and that they are in writing. Immediately after the Consultant contract has been awarded, one copy of the executed Consultant contract and any amendments shall be submitted to the State. 11 / P 1 a T 4of23 9 -2 -4 (3) The Local Agency shall require that all billings under the consultant contract comply with the State's standardized billing format. Examples of the billing formats are available from the CDOT Agreements Office. (4) The Local Agency (and any Consultant) shall comply with 23 C.F.R. 172.5(b) and (d) and use the CDOT procedures described in Exhibit H to administer the Consultant contract. (5) The Local Agency may expedite any CDOT approval of its procurement process and /or consultant contract by submitting a letter to CDOT from the Local Agency's attorney /authorized representative certifying compliance with Exhibit H and 23 C.F.R. 172.5(b)and (d). (6) The Local Agency shall ensure that the Consultant agreement complies with the requirements of 49 CFR 18.36(1) and contains the following language verbatim: (a) The design work under this Agreement shall be compatible with the requirements of the contract between the Local Agency and the State (which is incorporated herein by this reference) for the design /construction of the project. The State is an intended third -party beneficiary of this agreement for that purpose. (b) Upon advertisement of the project work for construction, the consultant shall make available services as requested by the State to assist the State in the evaluation of construction and the resolution of construction problems that may arise during the construction of the project. (c) The consultant shall review the Construction Contractor's shop drawings for conformance with the contract documents and compliance with the provisions of the State's publication, Standard Specifications for Road and Bridge Construction in connection with this work. d) The State, in its sole discretion, may review construction plans, special provisions and estimates and may require the Local Agency to make such changes therein as the State determines necessary to comply with State and FHWA requirements. iii. Construction a) If the Work includes construction, the Local Agency shall perform the construction in accordance with the approved design plans and /or administer the construction in accordance with the Exhibit G. Such administration shall include Work inspection and testing; approving sources of materials; performing required plant and shop inspections; documentation of contract payments, testing and inspection activities; preparing and approving pay estimates; preparing, approving and securing the funding for contract modification orders and minor contract revisions; processing Construction Contractor claims; construction supervision; and meeting the Quality Control requirements of the FHWA/CDOT Stewardship Agreement, as described in the Local Agency Contract Administration Checklist. b) If the Local Agency is performing the Work, the State may, after providing written notice of the reason for the suspension to the Local Agency, suspend the Work, wholly or in part, due to the failure of the Local Agency or its Contractor to correct conditions which are unsafe for workers or for such periods as the State may deem necessary due to unsuitable weather, or for conditions considered unsuitable for the prosecution of the Work, or for any other condition or reason deemed by the State to be in the public interest. c) The Local Agency shall be responsible for the following: (1) Appointing a qualified professional engineer, licensed in the State of Colorado, as the Local Agency Project Engineer (LAPE), to perform engineering administration. The LAPE shall administer the Work in accordance with this Agreement, the requirements of the construction contract and applicable State procedures. 11 / P 1 a T 5of23 9 -2 -5 (2) For the construction of the Work, advertising the call for bids upon approval by the State and awarding the construction contract(s) to the low responsible bidder(s). (a) All advertising and bid awards, pursuant to this agreement, by the Local Agency shall comply with applicable requirements of 23 U.S.C. §112 and 23 C.F.R. Parts 633 and 635 and C.R.S. § 24 -92 -101 et seq. Those requirements include, without limitation, that the Local Agency and its Contractor shall incorporate Form 1273 (Exhibit 1) in its entirety verbatim into any subcontract(s) for those services as terms and conditions therefore, as required by 23 C.F.R. 633.102(e). (b) The Local Agency may accept or reject the proposal of the apparent low bidder for Work on which competitive bids have been received. The Local Agency must accept or reject such bid within three (3) working days after they are publicly opened. (c) As part of accepting bid awards, the Local Agency shall provide additional funds, subject to their availability and appropriation, necessary to complete the Work if no additional federal -aid funds are available. (3) The requirements of this §6(D)(iii)(c)(2) also apply to any advertising and awards made by the State. (4) If all or part of the Work is to be accomplished by the Local Agency's personnel (i.e. by force account) rather than by a competitive bidding process, the Local Agency shall perform such work in accordance with pertinent State specifications and requirements of 23 C.F.R. 635, Subpart B, Force Account Construction. (a) Such Work will normally be based upon estimated quantities and firm unit prices agreed to between the Local Agency, the State and FHWA in advance of the Work, as provided for in 23 C.R.F. 635.204(c). Such agreed unit prices shall constitute a commitment as to the value of the Work to be performed. (b) An alternative to the preceeding subsection is that the Local Agency may agree to participate in the Work based on actual costs of labor, equipment rental, materials supplies and supervision necessary to complete the Work. Where actual costs are used, eligibility of cost items shall be evaluated for compliance with 48 C.F.R. Part 31. (c) If the State provides matching funds under this Agreement, rental rates for publicly owned equipment shall be determined in accordance with the State's Standard Specifications for Road and Bridge Construction §109.04. (d) All Work being paid under force account shall have prior approval of the State and /or FHWA and shall not be initiated until the State has issued a written notice to proceed. iv. State's Commitments a) of the Work as a quality control /assurance activity. When all Work has been satisfactorily completed, the State will sign the FHWA Form 1212. b) Notwithstanding any consents or approvals given by the State for the Plans, the State shall not be liable or responsible in any manner for the structural design, details or construction of any major structures designed by, or that are the responsibility of, the Local Agency as identified in the Local Agency Contract Administration Checklist, Exhibit E. v. ROW and Acquistion /Relocation a) If the Local Agency purchases a right of way for a State highway, including areas of influence, the Local Agency shall immediately convey title to such right of way to CDOT after the Local Agency obtains title. 11 / P 1 a T 6of23 9 -2 -6 b) Any acquisition /relocation activities shall comply with all applicable federal and state statutes and regulations, including but not limited to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended and the Uniform Relocation Assistance and Real Property Acquisition Policies for Federal and Federally Assisted Programs as amended (49 C.F.R. Part 24), CDOT's Right of Way Manual, and CDOT's Policy and Procedural Directives. c) The Parties' respective compliance responsibilities depend on the level of federal participation; provided however, that the State always retains Oversight responsibilities. d) The Parties' respective responsibilities under each level in CDOT's Right of Way Manual (located at http: / /www.dot.state.co.us /ROW Manual / ) and reimbursement for the levels will be under the following categories: (1) Right of way acquisition (3111) for federal participation and non - participation; (2) Relocation activities, if applicable (3109); (3) Right of way incidentals, if applicable (expenses incidental to acquisition /relocation of right of way — 3114). vi. Utilities If necessary, the Local Agency shall be responsible for obtaining the proper clearance or approval from any utility company which may become involved in the Work. Prior to the Work being advertised for bids, the Local Agency shall certify in writing to the State that all such clearances have been obtained. vii. Railroads If the Work involves modification of a railroad company's facilities and such modification will be accomplished by railroad company, the Local Agency shall make timely application to the Public Utilities commission requesting its order providing for the installation of the proposed improvements and not proceed with that part of the Work without compliance. The Local Agency shall also establish contact with the railroad company involved for the purpose of complying with applicable provisions of 23 C.F.R. 646, subpart B, concerning federal -aid projects involving railroad facilities and: a) Execute an agreement setting out what work is to be accomplished and the location(s) thereof, and which costs shall be eligible for federal participation. b) Obtain the railroad's detailed estimate of the cost of the Work. c) Establish future maintenance responsibilities for the proposed installation. d) Proscribe future use or dispositions of the proposed improvements in the event of abandonment or elimination of a grade crossing. e) Establish future repair and /or replacement responsibilities in the event of accidental destruction or damage to the installation. viii. Environmental Obligations The Local Agency shall perform all Work in accordance with the requirements of the current federal and state environmental regulations including the National Environmental Policy Act of 1969 (NEPA) as applicable. ix. Maintenance Obligations The Local Agency shall maintain and operate the Work constructed under this Agreement at its own cost and expense during their useful life, in a manner satisfactory to the State and FHWA, and the Local Agency shall provide for such maintenance and operations obligations each year. Such maintenance and operations shall be conducted in accordance with all applicable statutes, ordinances and regulations pertaining to maintaining such improvements. The State and FHWA may make periodic inspections to verify that such improvements are being adequately maintained. 7. OPTION LETTER MODIFICATION Option Letters may be used to extend Agreement term, change the level of service within the current term due to unexpected overmatch, add a phase without increasing contract dollars, or increase or decrease the amount of funding. These options are limited to the specific scenarios listed below. tt / P 1 a T 7of23 9 -2 -7 The Option Letter shall not be deemed valid until signed by the State Controller or an authorized delegate. Following are the applications for the individual options under the Option Letter form: A. Option 1- Level of service change within current term due to unexpected overmatch in an overbid situation only In the event the State has contracted all project funding and the Local Agency's construction bid is higher than expected, this option allows for additional Local Overmatch dollars to be provided by the Local Agency to be added to the contract. This option is only applicable for Local Overmatch on an overbid situation and shall not be intended for any other Local Overmatch funding. The State may unilaterally increase the total dollars of this contract as stipulated by the executed Option Letter (Exhibit D), which will bringthe maximum amount payable under this contract tothe amount indicated in Exhibit C -1 attached to the executed Option Letter (future changes to Exhibit C shall be labeled as C -2, C -3, etc, as applicable). Performance of the services shall continue under the same terms as established in the contract. The State will use the Financial Statement submitted by the Local Agency for "Concurrence to Advertise" as evidence of the Local Agency's intent to award and it will also provide the additional amount required to exercise this option. If the State exercises this option, the contract will be considered to include this option provision. B. Option 2 — Option to add overlapping phase without increasing contract dollars. The State may require the contractor to begin a phase that may include Design, Construction, Environmental, Utilities, ROW Incidentals or Miscellaneous (this does not apply to Acquisition /Relocation or Railroads) as detailed in Exhibit A and at the same terms and conditions stated in the original contract with the contract dollars remaining the same. The State may exercise this option by providing a fully executed option to the contractor within thirty (30) days before the initial targeted start date of the phase, in a form substantially equivalent to Exhibit D. If the State exercises this option, the contract will be considered to include this option provision. C. Option 3 - To update funding (increases and /or decreases) with a new Exhibit C. This option can be used to increase and /or decrease the overall contract dollars (state, federal, local match, local agency overmatch) to date, by replacing the original funding exhibit (Exhibit C) in the Original Contract with an updated Exhibit C -1 (subsequent exhibits to Exhibit C -1 shall be labeled C -2, C -3, etc). The State may have a need to update changes to state, federal, local match and local agency overmatch funds as outlined in Exhibit C -1, which will be attached to the option form. The State may exercise this option by providing a fully executed option to the contractor within thirty (30) days after the State has received notice of funding changes, in a form substantially equivalent to Exhibit D. If the State exercises this option, the contract will be considered to include this option provision. 8. PAYMENTS The State shall, in accordance with the provisions of this §7, pay the Local Agency in the amounts and using the methods set forth below: A. Maximum Amount The maximum amount payable to the Local Agency under this contract shall be $94,986.00 unless modified by Option Letter or Formal Amendment. The maximum amount payable is set forth in Exhibit C as determined by the State from available funds. Payments to the Local Agency are limited to the unpaid encumbered balance of the Contract set forth in Exhibit C. The Local Agency shall provide its match share of the costs as evidenced by an appropriate ordinance /resolution or other authority letter which expressly authorizes the Local Agency the authority to enter into this Agreement and to expend its match share of the Work. A copy of such ordinance /resolution or authority letter is attached hereto as Exhibit B. B. Payment i. Interim and Final Payments Any payment allowed under this Contract or in Exhibit C shall comply with State Fiscal Rules and be made in accordance with the provisions of this Contract or such Exhibit. The Local Agency shall initiate any payment requests by submitting invoices to the State in the form and manner set forth in approved by the State. 11 / P 1 a ? 8of23 9 -2 -8 ii. Interest The State shall fully pay each invoice within 45 days of receipt thereof if the amount invoiced represents performance by the Local Agency previously accepted by the State. Uncontested amounts not paid by the State within 45 days shall bear interest on the unpaid balance beginning on the 46th day at a rate not to exceed one percent per month until paid in full; provided, however, that interest shall not accrue on unpaid amounts that are subject to a good faith dispute. The Local Agency shall invoice the State separately for accrued interest on delinquent amounts. The billing shall reference the delinquent payment, the number of days interest to be paid and the interest rate. iii. Available Funds - Contingency- Termination The State is prohibited by law from making commitments beyond the term of the State's current fiscal year. Therefore, the Local Agency's compensation beyond the State's current Fiscal Year is contingent upon the continuing availability of State appropriations as provided in the Colorado Special Provisions. The State's performance hereunder is also contingent upon the continuing availability of federal funds. Payments pursuant to this Contract shall be made only from available funds encumbered for this Contract and the State's liability for such payments shall be limited to the amount remaining of such encumbered funds. If State or federal funds are not appropriated, or otherwise become unavailable to fund this Contract, the State may terminate this Contract immediately, in whole or in part, without further liability in accordance with the provisions hereof. iv. Erroneous Payments At the State's sole discretion, payments made to the Local Agency in error for any reason, including, but not limited to overpayments or improper payments, and unexpended or excess funds received by the Local Agency, may be recovered from the Local Agency by deduction from subsequent payments under this Contract or other contracts, Agreements or agreements between the State and the Local Agency or by other appropriate methods and collected as a debt due to the State. Such funds shall not be paid to any party other than the State. C. Use of Funds Contract Funds shall be used only for eligible costs identified herein. D. Matching Funds The Local Agency shall provide matching funds as provided in §7.A. and Exhibit C. The Local Agency shall have raised the full amount of matching funds prior to the Effective Date and shall report to the State regarding the status of such funds upon request. The Local Agency's obligation to pay all or any part of any matching funds, whether direct or contingent, only extend to funds duly and lawfully appropriated for the purposes of this Agreement by the authorized representatives of the Local Agency and paid into the Local Agency's treasury. The Local Agency represents to the State that the amount designated "Local Agency Matching Funds" in Exhibit C has been legally appropriated for the purpose of this Agreement by its authorized representatives and paid into its treasury. The Local Agency does not by this Agreement irrevocably pledge present cash reserves for payments in future fiscal years, and this Agreement is not intended to create a multiple - fiscal year debt of the Local Agency. The Local Agency shall not pay or be liable for any claimed interest, late charges, fees, taxes or penalties of any nature, except as required by the Local Agency's laws or policies. E. Reimbursement of Local Agency Costs The State shall reimburse the Local Agency's allowable costs, not exceeding the maximum total amount described in Exhibit C and §7. The applicable principles described in 49 C.F.R. 18 Subpart C and 49 C.F.R. 18.22 shall govern the State's obligation to reimburse all costs incurred by the Local Agency and submitted to the State for reimubursement hereunder, and the Local Agency shall comply with all such principles. The State shall reimburse the Local Agency for the federal -aid share of properly documented costs related to the Work after review and approval thereof, subject to the provisions of this Agreement and Exhibit C. However, any costs incurred by the Local Agency prior to the date of FHWA authorization for the Work and prior to the Effective Date shall not be reimbursed absent specific FHWA and State Controller approval thereof. Costs shall be: i. Reasonable and Necessary Resonable and necessary to accomplish the Work and for the Goods and Services provided. 11 / P 1 a T 9of23 9 -2 -9 ii. Net Cost Actual net cost to the Local Agency (i.e. the price paid minus any items of value received by the Local Agency that reduce the cost actually incurred); 9. ACCOUNTING The Local Agency shall establish and maintain accounting systems in accordance with generally accepted accounting standards (a separate set of accounts, or as a separate and integral part of its current accounting scheme). Such accounting systems shall, at a minimum, provide as follows: A. Local Agency Performing the Work If Local Agency is performing the Work, all allowable costs, including any approved services contributed by the Local Agency or others, shall be documented using payrolls, time records, invoices, contracts, vouchers, and other applicable records. B. Local Agency- Checks or Draws Checks issued or draws made by the Local Agency shall be made or drawn against properly signed vouchers detailing the purpose thereof. All checks, payrolls, invoices, contracts, vouchers, orders, and other accounting documents shall be on file in the office of the Local Agency ,clearly identified, readily accessible, and to the extent feasible, kept separate and apart from all other Work documents. C. State - Administrative Services The State may perform any necessary administrative support services required hereunder. The Local Agency shall reimburse the State for the costs of any such services from the Budget as provided for in Exhibit C. If FHWA funding is not available or is withdrawn, or if the Local Agency terminates this Agreement prior to the Work being approved or completed, then all actual incurred costs of such services and assistance provided by the State shall be the Local Agency's sole expense. D. Local Agency- Invoices The Local Agency's invoices shall describe in detail the reimbursable costs incurred by the Local Agency, for which it seeks reimbursement; the dates such costs were incurred; and the amounts thereof, and shall not be submitted more often than monthly. E. Invoicing Within 60 Days The State shall not be liable to reimburse the Local Agency for any costs unless CDOT receives such invoices within 60 days after the date for which payment is requested, including final invoicing. Final payment to the Local Agency may be withheld at the discretion of the State until completion of final audit. Any costs incurred by the Local Agency that are not allowable under 49 C.F.R. 18 shall be reimbursed by the Local Agency, or the State may offset them against any payments due from the State to the Local Agency. F. Reimbursement of State Costs CDOT shall perform Oversight and the Local Agency shall reimburse CDOT for its related costs. The Local Agency shall pay invoices within 60 days after receipt thereof. If the Local Agency fails to remit payment within 60 days, at CDOT's request, the State is authorized to withhold an equal amount from future apportionment due the Local Agency from the Highway Users Tax Fund and to pay such funds directly to CDOT. Interim funds, shall be payable from the State Highway Supplementary Fund (400) until CDOT is reimbursed. If the Local Agency fails to make payment within 60 days, it shall pay interest to the State at a rate of one percent per month on the delinquent amounts until the billing is paid in full. CDOT's invoices shall describe in detail the reimbursable costs incurred, the dates incurred; and the amounts thereof, and shall not be submitted more often than monthly. 10. REPORTING - NOTIFICATION Reports, Evaluations, and Reviews required under this §8 shall be in accordance with the procedures of and in such form as prescribed by the State and in accordance with §19, if applicable. A. Performance, Progress, Personnel, and Funds The Local Agency shall submit a report to the State upon expiration or sooner termination of this Agreement, containing an Evaluation and Review of the Local Agency's performance and the final status of the Local Agency's obligations hereunder. 11/ 672010 of 23 9-2-10 B. Litigation Reporting Within 10 days after being served with any pleading related to this Agreement, in a legal action filed with a court or administrative agency, the Local Agency shall notify the State of such action and deliver copies of such pleadings to the State's principal representative as identified herein. If the State or its principal representative is not then serving, such notice and copies shall be delivered to the Executive Director of CDOT. C. Noncompliance The Local Agency's failure to provide reports and notify the State in a timely manner in accordance with this §8 may result in the delay of payment of funds and /or termination as provided under this Agreement. D. Documents Upon request by the State, the Local Agency shall provide the State, or its authorized representative, copies of all documents, including contracts and subcontracts, in its possession related to the Work. 11. LOCAL AGENCY RECORDS A. Maintenance The Local Agency shall make, keep, maintain, and allow inspection and monitoring by the State of a complete file of all records, documents, communications, notes and other written materials, electronic media files, and communications, pertaining in any manner to the Work or the delivery of Services (including, but not limited to the operation of programs) or Goods hereunder. The Local Agency shall maintain such records until the last to occur of the following: (i) a period of three years after the date this Agreement is completed or terminated, or (ii) three years after final payment is made hereunder, whichever is later, or (iii) for such further period as may be necessary to resolve any pending matters, or (iv) if an audit is occurring, or the Local Agency has received notice that an audit is pending, then until such audit has been completed and its findings have been resolved (collectively, the "Record Retention Period "). B. Inspection The Local Agency shall permit the State, the federal government and any other duly authorized agent of a governmental agency to audit, inspect, examine, excerpt, copy and /or transcribe the Local Agency's records related to this Agreement during the Record Retention Period to assure compliance with the terms hereof or to evaluate the Local Agency's performance hereunder. The State reserves the right to inspect the Work at all reasonable times and places during the term of this Agreement, including any extension. If the Work fails to conform to the requirements of this Agreement, the State may require the Local Agency promptly to bring the Work into conformity with Agreement requirements, at the Local Agency's sole expense. If the Work cannot be brought into conformance by re- performance or other corrective measures, the State may require the Local Agency to take necessary action to ensure that future performance conforms to Agreement requirements and exercise the remedies available under this Agreement, at law or in equity in lieu of or in conjunction with such corrective measures. C. Monitoring The Local Agency also shall permit the State, the federal government or any other duly authorized agent of a governmental agency, in their sole discretion, to monitor all activities conducted by the Local Agency pursuant to the terms of this Agreement using any reasonable procedure, including, but not limited to: internal evaluation procedures, examination of program data, special analyses, on -site checking, formal audit examinations, or any other procedures. All such monitoring shall be performed in a manner that shall not unduly interfere with the Local Agency's performance hereunder. D. Final Audit Report If an audit is performed on the Local Agency's records for any fiscal year covering a portion of the term of this Agreement, the Local Agency shall submit a copy of the final audit report to the State or its principal representative at the address specified herein. 11P 672010 of 23 9 -2 11 12. CONFIDENTIAL INFORMATION -STATE RECORDS The Local Agency shall comply with the provisions of this §10 if it becomes privy to confidential information in connection with its performance hereunder. Confidential information, includes, but is not necessarily limited to, state records, personnel records, and information concerning individuals. A. Confidentiality The Local Agency shall keep all State records and information confidential at all times and to comply with all laws and regulations concerning confidentiality of information. Any request or demand by a third party for State records and information in the possession of the Local Agency shall be immediately forwarded to the State's principal representative. B. Notification The Local Agency shall notify its agents, employees and assigns who may come into contact with State records and confidential information that each is subject to the confidentiality requirements set forth herein, and shall provide each with a written explanation of such requirements before they are permitted to access such records and information. C. Use, Security, and Retention Confidential information of any kind shall not be distributed or sold to any third party or used by the Local Agency or its agents in any way, except as authorized by the Agreement and as approved by the State. The Local Agency shall provide and maintain a secure environment that ensures confidentiality of all State records and other confidential information wherever located. Confidential information shall not be retained in any files or otherwise by the Local Agency or its agents, except as set forth in this Agreement and approved by the State. D. Disclosure - Liability Disclosure of State records or other confidential information by the Local Agency for any reason may be cause for legal action by third parties against the Local Agency, the State or their respective agents. The Local Agency shall indemnify, save, and hold harmless the State, its employees and agents, against any and all claims, damages, liability and court awards including costs, expenses, and attorney fees and related costs, incurred as a result of any act or omission by the Local Agency, or its employees, agents, or assignees pursuant to this §10. 13. CONFLICT OF INTEREST The Local Agency 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 Local Agency's obligations hereunder. The Local Agency acknowledges that with respect to this Agreement, even the appearance of a conflict of interest is harmful to the State's interests. Absent the State's prior written approval, the Local Agency shall refrain from any practices, activities or relationships that reasonably appear to be in conflict with the full performance of the Local Agency's obligations to the State hereunder. If a conflict or appearance exists, or if the Local Agency is uncertain whether a conflict or the appearance of a conflict of interest exists, the Local Agency shall submit to the State a disclosure statement setting forth the relevant details for the State's consideration. Failure to promptly submit a disclosure statement or to follow the State's direction in regard to the apparent conflict constitutes a breach of this Agreement. 14. REPRESENTATIONS AND WARRANTIES The Local Agency makes the following specific representations and warranties, each of which was relied on by the State in entering into this Agreement. A. Standard and Manner of Performance The Local Agency shall perform its obligations hereunder, including in accordance with the highest professional standard of care, skill and diligence and in the sequence and manner set forth in this Agreement. B. Legal Authority — The Local Agency and the Local Agency's Signatory The Local Agency 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 laws to exercise that authority, and to lawfully authorize its undersigned signatory to execute this Agreement, or any part thereof, and to bind the Local Agency to its terms. 11/ 672010 of 23 9 -2- 12 If requested by the State, the Local Agency shall provide the State with proof of the Local Agency's authority to enter into this Agreement within 15 days of receiving such request. C. Licenses, Permits, Etc. The Local Agency represents and warrants that as of the Effective Date it has, and that at all times during the term hereof it shall have, at its sole expense, all licenses, certifications, approvals, insurance, permits, and other authorization required by law to perform its obligations hereunder. The Local Agency warrants that it shall maintain all necessary licenses, certifications, approvals, insurance, permits, and other authorizations required to properly perform this Agreement, without reimbursement by the State or other adjustment in Agreement Funds. Additionally, all employees and agents of the Local Agency performing Services under this Agreement shall hold all required licenses or certifications, if any, to perform their responsibilities. The Local Agency, if a foreign corporation or other foreign entity transacting business in the State of Colorado, further warrants that it currently has obtained and shall maintain any applicable certificate of authority to transact business in the State of Colorado and has designated a registered agent in Colorado to accept service of process. Any revocation, withdrawal or non - renewal of licenses, certifications, approvals, insurance, permits or any such similar requirements necessary for the Local Agency to properly perform the terms of this Agreement shall be deemed to be a material breach by the Local Agency and constitute grounds for termination of this Agreement. 15. INSURANCE The Local Agency and its contractors shall obtain and maintain insurance as specified in this section at all times during the term of this Agreement: All policies evidencing the insurance coverage required hereunder shall be issued by insurance companies satisfactory to the Local Agency and the State. A. The Local Agency i. Public Entities If the Local Agency is a "public entity" within the meaning of the Colorado Governmental Immunity Act, CRS §24 -10 -101, et seq., as amended (the "GIA "), then the Local Agency shall maintain at all times during the term of this Agreement such liability insurance, by commercial policy or self- insurance, as is necessary to meet its liabilities under the GIA. The Local Agency shall show proof of such insurance satisfactory to the State, if requested by the State. The Local Agency shall require each Agreement with their Consultant and Contractor, that are providing Goods or Services hereunder, to include the insurance requirements necessary to meet Consultant or Contractor liabilities under the GIA. ii. Non - Public Entities If the Local Agency is not a "public entity" within the meaning of the Governmental Immunity Act, the Local Agency shall obtain and maintain during the term of this Agreement insurance coverage and policies meeting the same requirements set forth in §13(B) with respect to sub - contractors that are not "public entities ". B. Contractors The Local Agency shall require each contract with Contractors, Subcontractors, or Consultants, other than those that are public entities, providing Goods or Services in connection with this Agreement, to include insurance requirements substantially similar to the following: i. Worker's Compensation Worker's Compensation Insurance as required by State statute, and Employer's Liability Insurance covering all of the Local Agency's Contractors, Subcontractors, or Consultant's employees acting within the course and scope of their employment. ii. General Liability Commercial General Liability Insurance written on ISO occurrence form CG 00 01 10/93 or equivalent, covering premises operations, fire damage, independent the Local Agencys, products and completed operations, blanket Agreementual liability, personal injury, and advertising liability with minimum limits as follows: (a) $1,000,000 each occurrence; (b) $1,000,000 general aggregate; (c) $1,000,000 products and completed operations aggregate; and (d) $50,000 any one fire. 11/ 672010 of 23 9 -2 13 If any aggregate limit is reduced below $1,000,000 because of claims made or paid, contractors, subcontractors, and consultants shall immediately obtain additional insurance to restore the full aggregate limit and furnish to the Local Agency a certificate or other document satisfactory to the Local Agency showing compliance with this provision. iii. Automobile Liability Automobile Liability Insurance covering any auto (including owned, hired and non -owned autos) with a minimum limit of $1,000,000 each accident combined single limit. iv. Additional Insured The Local Agency and the State shall be named as additional insured on the Commercial General Liability policies (leases and construction contracts require additional insured coverage for completed operations on endorsements CG 2010 11/85, CG 2037, or equivalent). v. Primacy of Coverage Coverage required of the Consultants or Contractorsshall be primary over any insurance or self- insurance program carried by the Local Agency or the State. vi. Cancellation The above insurance policies shall include provisions preventing cancellation or non - renewal without at least 45 days prior notice to the Local Agency and the State by certified mail. vii. Subrogation Waiver All insurance policies in any way related to this Agreement and secured and maintained by the Local Agency's Consultants or Contractors as required herein shall include clauses stating that each carrier shall waive all rights of recovery, under subrogation or otherwise, against the Local Agency or the State, its agencies, institutions, organizations, officers, agents, employees, and volunteers. C. Certificates The Local Agency and all Contractors, subcontractors, or Consultants shall provide certificates showing insurance coverage required hereunder to the State within seven business days of the Effective Date of this Agreement. No later than 15 days prior to the expiration date of any such coverage, the Local Agency and each contractor, subcontractor, or consultant shall deliver to the State or the Local Agency certificates of insurance evidencing renewals thereof. In addition, upon request by the State at any other time during the term of this Agreement or any sub- contract, the Local Agency and each contractor, subcontractor, or consultant shall, within 10 days of such request, supply to the State evidence satisfactory to the State of compliance with the provisions of this §13. 16. DEFAULT - BREACH A. Defined In addition to any breaches specified in other sections of this Agreement, the failure of either Party to perform any of its material obligations hereunder in whole or in part or in a timely or satisfactory manner, constitutes a breach. B. Notice and Cure Period In the event of a breach, notice of such shall be given in writing by the aggrieved Party to the other Party in the manner provided in §16. If such breach is not cured within 30 days of receipt of written notice, or if a cure cannot be completed within 30 days, or if cure of the breach has not begun within 30 days and pursued with due diligence, the State may exercise any of the remedies set forth in §15. Notwithstanding anything to the contrary herein, the State, in its sole discretion, need not provide advance notice or a cure period and may immediately terminate this Agreement in whole or in part if reasonably necessary to preserve public safety or to prevent immediate public crisis.. 17. REMEDIES If the Local Agency is in breach under any provision of this Agreement, the State shall have all of the remedies listed in this §15 in addition to all other remedies set forth in other sections of this P 11/ 672010 of 23 9-2-14 Agreement following the notice and cure period set forth in §14(B). The State may exercise any or all of the remedies available to it, in its sole discretion, concurrently or consecutively. A. Termination for Cause and /or Breach If the Local Agency fails to perform any of its obligations hereunder with such diligence as is required to ensure its completion in accordance with the provisions of this Agreement and in a timely manner, the State may notify the Local Agency of such non - performance in accordance with the provisions herein. If the Local Agency thereafter fails to promptly cure such non - performance within the cure period, the State, at its option, may terminate this entire Agreement or such part of this Agreement as to which there has been delay or a failure to properly perform. Exercise by the State of this right shall not be deemed a breach of its obligations hereunder. The Local Agency shall continue performance of this Agreement to the extent not terminated, if any. i. Obligations and Rights To the extent specified in any termination notice, the Local Agency shall not incur further obligations or render further performance hereunder past the effective date of such notice, and shall terminate outstanding orders and sub - Agreements with third parties. However, the Local Agency shall complete and deliver to the State all Work, Services and Goods not cancelled by the termination notice and may incur obligations as are necessary to do so within this Agreement's terms. At the sole discretion of the State, the Local Agency shall assign to the State all of the Local Agency's right, title, and interest under such terminated orders or sub - Agreements. Upon termination, the Local Agency shall take timely, reasonable and necessary action to protect and preserve property in the possession of the Local Agency in which the State has an interest. All materials owned by the State in the possession of the Local Agency shall be immediately returned to the State. All Work Product, at the option of the State, shall be delivered by the Local Agency to the State and shall become the State's property. ii. Payments The State shall reimburse the Local Agency only for accepted performance received up to the date of termination. If, after termination by the State, it is determined that the Local Agency was not in default or that the Local Agency's action or inaction was excusable, such termination shall be treated as a termination in the public interest and the rights and obligations of the Parties shall be the same as if this Agreement had been terminated in the public interest, as described herein. iii. Damages and Witholding Notwithstanding any other remedial action by the State, the Local Agency also shall remain liable to the State for any damages sustained by the State by virtue of any breach under this Agreement by the Local Agency and the State may withhold any payment to the Local Agency for the purpose of mitigating the State's damages, until such time as the exact amount of damages due to the State from the Local Agency is determined. The State may withhold any amount that may be due to the Local Agency as the State deems necessary to protect the State, including loss as a result of outstanding liens or claims of former lien holders, or to reimburse the State for the excess costs incurred in procuring similar goods or services. The Local Agency shall be liable for excess costs incurred by the State in procuring from third parties replacement Work, Services or substitute Goods as cover. B. Early Termination in the Public Interest The State is entering into this Agreement for the purpose of carrying out the public policy of the State of Colorado, as determined by its Governor, General Assembly, and /or Courts. If this Agreement ceases to further the public policy of the State, the State, in its sole discretion, may terminate this Agreement in whole or in part. Exercise by the State of this right shall not constitute a breach of the State's obligations hereunder. This subsection shall not apply to a termination of this Agreement by the State for cause or breach by the Local Agency, which shall be governed by §15(A) or as otherwise specifically provided for herein. i. Method and Content 11/ 672010 of 23 9 -2- 15 The State shall notify the Local Agency of the termination in accordance with §16, specifying the effective date of the termination and whether it affects all or a portion of this Agreement. ii. Obligations and Rights Upon receipt of a termination notice, the Local Agency shall be subject to and comply with the same obligations and rights set forth in §15(A)(i). iii. Payments If this Agreement is terminated by the State pursuant to this §15(B), the Local Agency shall be paid an amount which bears the same ratio to the total reimbursement under this Agreement as the Services satisfactorily performed bear to the total Services covered by this Agreement, less payments previously made. Additionally, if this Agreement is less than 60% completed, the State may reimburse the Local Agency for a portion of actual out -of- pocket expenses (not otherwise reimbursed under this Agreement) incurred by the Local Agency which are directly attributable to the uncompleted portion of the Local Agency's obligations hereunder; provided that the sum of any and all reimbursement shall not exceed the maximum amount payable to the Local Agency hereunder. C. Remedies Not Involving Termination The State, its sole discretion, may exercise one or more of the following remedies in addition to other remedies available to it: i. Suspend Performance Suspend the Local Agency's performance with respect to all or any portion of this Agreement pending necessary corrective action as specified by the State without entitling the Local Agency to an adjustment in price /cost or performance schedule. The Local Agency shall promptly cease performance and incurring costs in accordance with the State's directive and the State shall not be liable for costs incurred by the Local Agency after the suspension of performance under this provision. ii. Withold Payment Withhold payment to the Local Agency until corrections in the Local Agency's performance are satisfactorily made and completed. iii. Deny Payment Deny payment for those obligations not performed, that due to the Local Agency's actions or inactions, cannot be performed or, if performed, would be of no value to the State; provided, that any denial of payment shall be reasonably related to the value to the State of the obligations not performed. iv. Removal Demand removal of any of the Local Agency's employees, agents, or contractors whom the State deems incompetent, careless, insubordinate, unsuitable, or otherwise unacceptable, or whose continued relation to this Agreement is deemed to be contrary to the public interest or not in the State's best interest. v. Intellectual Property If the Local Agency infringes on a patent, copyright, trademark, trade secret or other intellectual property right while performing its obligations under this Agreement, the Local Agency shall, at the State's option (a) obtain for the State or the Local Agency the right to use such products and services; (b) replace any Goods, Services, or other product involved with non - infringing products or modify them so that they become non - infringing; or, (c) if neither of the forgegoing alternatives are reasonably available, remove any infringing Goods, Services, or products and refund the price paid therefore to the State. 18. NOTICES and REPRESENTATIVES Each individual identified below is the principal representative of the designating Party. All notices required to be given hereunder shall be hand delivered with receipt required or sent by certified or registered mail to such Party's principal representative at the address set forth below. In addition to, but not in lieu of a hard -copy notice, notice also may be sent by e -mail to the e -mail addresses, if any, set forth below. Either Party may from time to time designate by written notice substitute addresses or P 11/ 672010 of 23 9 -2- 16 persons to whom such notices shall be sent. Unless otherwise provided herein, all notices shall be effective upon receipt. A. State: Martha Miller CDOT Region 3 Resident Engineer 714 Grand Avenue Eagle, CO 81631 (970) 328 -6385 B. Local Agency: Chad Salli Town of Vail Project Engineer 1309 Elkhorn Drive Vail, CO 81657 (970) 479 -2100 19. RIGHTS IN DATA, DOCUMENTS, AND COMPUTER SOFTWARE Any software, research, reports, studies, data, photographs, negatives or other documents, drawings, models, materials, or work product of any type, including drafts, prepared by the Local Agency in the performance of its obligations under this Agreement shall be the exclusive property of the State and, all Work Product shall be delivered to the State by the Local Agency upon completion or termination hereof. The State's exclusive rights in such Work Product shall include, but not be limited to, the right to copy, publish, display, transfer, and prepare derivative works. The Local Agency shall not use, willingly allow, cause or permit such Work Product to be used for any purpose other than the performance of the Local Agencys's obligations hereunder without the prior written consent of the State. 20. GOVERNMENTAL IMMUNITY Notwithstanding any other provision to the contrary, nothing herein shall constitute a waiver, express or implied, of any of the immunities, rights, benefits, protection, or other provisions of the Colorado Governmental Immunity Act, CRS §24 -10 -101, et seq., as amended. Liability for claims for injuries to persons or property arising from the negligence of the State of Colorado, its departments, institutions, agencies, boards, officials, and employees is controlled and limited by the provisions of the Governmental Immunity Act and the risk management statutes, CRS §24 -30 -1501, et seq., as amended. 21. STATEWIDE CONTRACT MANAGEMENT SYSTEM If the maximum amount payable to the Local Agency under this Agreement is $100,000 or greater, either on the Effective Date or at anytime thereafter, this §21 applies. The Local Agency agrees to be governed, and to abide, by the provisions of CRS §24- 102 -205, §24- 102 -206, §24- 103 -601, §24- 103.5 -101 and §24- 105 -102 concerning the monitoring of vendor performance on state Agreements and inclusion of Agreement performance information in a statewide Agreement management system. The Local Agency's performance shall be subject to Evaluation and Review in accordance with the terms and conditions of this Agreement, State law, including CRS §24- 103.5 -101, and State Fiscal Rules, Policies and Guidance. Evaluation and Review of the Local Agency's performance shall be part of the normal Agreement administration process and the Local Agency's performance will be systematically recorded in the statewide Agreement Management System. Areas of Evaluation and Review shall include, but shall not be limited to quality, cost and timeliness. Collection of information relevant to the performance of the Local Agency's obligations under this Agreement shall be 11/1672010 of 23 9 -2- 17 determined by the specific requirements of such obligations and shall include factors tailored to match the requirements of the Local Agency's obligations. Such performance information shall be entered into the statewide Agreement Management System at intervals established herein and a final Evaluation, Review and Rating shall be rendered within 30 days of the end of the Agreement term. The Local Agency shall be notified following each performance Evaluation and Review, and shall address or correct any identified problem in a timely manner and maintain work progress. Should the final performance Evaluation and Review determine that the Local Agency demonstrated a gross failure to meet the performance measures established hereunder, the Executive Director of the Colorado Department of Personnel and Administration (Executive Director), upon request by CDOT, and showing of good cause, may debar the Local Agency and prohibit the Local Agency from bidding on future Agreements. The Local Agency may contest the final Evaluation, Review and Rating by: (a) filing rebuttal statements, which may result in either removal or correction of the evaluation (CRS §24- 105- 102(6)), or (b) under CRS §24- 105 - 102(6), exercising the debarment protest and appeal rights provided in CRS § §24- 109 -106, 107, 201 or 202, which may result in the reversal of the debarment and reinstatement of the Local Agency, by the Executive Director, upon showing of good cause. 22. FEDERAL REQUIREMENTS The Local Agency and /or their contractors, subcontractors, and consultants shall at all times during the execution of this Agreement strictly adhere to, and comply with, all applicable federal and state laws, and their implementing regulations, as they currently exist and may hereafter be amended. A listing of certain federal and state laws that may be applicable are described in Exhibit J. 23. DISADVANTAGED BUSINESS ENTERPRISE (DBE) The Local Agency will comply with all requirements of Exhibit G and the Local Agency Contract Administration Checklist regarding DBE requirements for the Work, except that if the Local Agency desires to use its own DBE program to implement and administer the DBE provisions of 49 C.F.R. Part 26 under this Agreement, it must submit a copy of its program's requirements to the State for review and approval before the execution of this Agreement. If the Local Agency uses any State - approved DBE program for this Agreement, the Local Agency shall be solely responsible to defend that DBE program and its use of that program against all legal and other challenges or complaints, at its sole cost and expense. Such responsibility includes, without limitation, determinations concerning DBE eligibility requirements and certification, adequate legal and factual bases for DBE goals and good faith efforts. State approval (if provided) of the Local Agency's DBE program does not waive or modify the sole responsibility of the Local Agency for use of its program. 24. DISPUTES Except as otherwise provided in this Agreement, any dispute concerning a question of fact arising under this Agreement which is not disposed of by agreement, shall be decided by the Chief Engineer of the Department of Transportation. The decision of the Chief Engineer will be final and conclusive unless, within 30 calendar days after the date of receipt of a copy of such written decision, the Local Agency mails or otherwise furnishes to the State a written appeal addressed to the Executive Director of CDOT. In connection with any appeal proceeding under this clause, the Local Agency shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Local Agency shall proceed diligently with the performance of this Agreement in accordance with the Chief Engineer's decision. The decision of the Executive Director or his duly authorized representative for the determination of such appeals shall be final and conclusive and serve as final agency action. This dispute clause does not preclude consideration of questions of law in connection with decisions provided for herein. Nothing in this Agreement, however, shall be construed as making final the decision of any administrative official, representative, or board on a question of law. 25. GENERAL PROVISIONS A. Assignment The Local Agency's rights and obligations hereunder are personal and may not be transferred, assigned or subcontracted without the prior, written consent of the State. Any attempt at P 11/ 672010 of 23 9 -2- 18 assignment, transfer, subcontracting without such consent shall be void. All assignments and subcontracts approved by the Local Agency or the State are subject to all of the provisions hereof. The Local Agency shall be solely responsible for all aspects of subcontracting arrangements and performance. B. Binding Effect Except as otherwise provided in §20(A), all provisions herein contained, including the benefits and burdens, shall extend to and be binding upon the Parties' respective heirs, legal representatives, successors, and assigns. C. Captions The captions and headings in this Agreement are for convenience of reference only, and shall not be used to interpret, define, or limit its provisions. D. Counterparts This Agreement may be executed in multiple identical original counterparts, all of which shall constitute one agreement. E. Entire Understanding This Agreement represents the complete integration of all understandings between the Parties and all prior representations and understandings, oral or written, are merged herein. Prior or contemporaneous addition, deletion, or other amendment hereto shall not have any force or affect whatsoever, unless embodied herein. F. Indemnification - General If Local Agency is not a "public entity" within the meaning of the Colorado Governmental Immunity Act, CRS §24 -10 -101, et seq., the Local Agency shall indemnify, save, and hold harmless the State, its employees and agents, against any and all claims, damages, liability and court awards including costs, expenses, and attorney fees and related costs, incurred as a result of any act or omision by the Local Agency, or its employees, agents, subcontractors or assignees pursuant to the terms of this Agreement. This clause is not applicable to a Local Agency that is a "public entity" within the meaning of the Colorado Governmental Immunity Act, CRS §24 -10 -101, et seq. G. Jurisdction and Venue All suits, actions, or proceedings related to this Agreement shall be held in the State of Colorado and exclusive venue shall be in the City and County of Denver. H. Limitations of Liability Any and all limitations of liability and /or damages in favor of the Local Agency contained in any document attached to and /or incorporated by reference into this Agreement, whether referred to as an exhibit, attachment, schedule, or any other name, are void and of no effect. This includes, but is not necessarily limited to, limitations on (i) the types of liabilities, (ii) the types of damages, (iii) the amount of damages, and (iv) the source of payment for damages. I. Modification i. By the Parties Except as specifically provided in this Agreement, modifications of this Agreement shall not be effective unless agreed to in writing by both parties in an amendment to this Agreement, properly executed and approved in accordance with applicable Colorado State law, State Fiscal Rules, and Office of the State Controller Policies, including, but not limited to, the policy entitled MODIFICATIONS OF AGREEMENTS - TOOLS AND FORMS. ii. By Operation of Law This Agreement is subject to such modifications as may be required by changes in Federal or Colorado State law, or their implementing regulations. Any such required modification automatically shall be incorporated into and be part of this Agreement on the effective date of such change, as if fully set forth herein. J. Order of Precedence The provisions of this Agreement shall govern the relationship of the State and the Local Agency. In the event of conflicts or inconsistencies between this Agreement and its exhibits and P 11/ 672010 of 23 9 -2- 19 attachments, such conflicts or inconsistencies shall be resolved by reference to the documents in the following order of priority: i. Colorado Special Provisions, ii. The provisions of the main body of this Agreement, iii. Exhibit A (Scope of Work), iv. Exhibit B (Local Agency Resolution), v. Exhibit C (Funding Provisions), vi. Exhibit D (Option Letter), vii. Exhibit E (Local Agency Contract Administration Checklist), viii. Other exhibits in descending order of their attachment. K. Severability Provided this Agreement can be executed and performance of the obligations of the Parties accomplished within its intent, the provisions hereof are severable and any provision that is declared invalid or becomes inoperable for any reason shall not affect the validity of any other provision hereof. L. Survival of Certain Agreement Terms Notwithstanding anything herein to the contrary, provisions of this Agreement requiring continued performance, compliance, or effect after termination hereof, shall survive such termination and shall be enforceable by the State if the Local Agency fails to perform or comply as required. M. Taxes The State is exempt from all federal excise taxes under IRC Chapter 32 (No. 84- 730123K) and from all State and local government sales and use taxes under CRS § §39 -26 -101 and 201 et seq. Such exemptions apply when materials are purchased or services rendered to benefit the State; provided however, that certain political subdivisions (e.g., City of Denver) may require payment of sales or use taxes even though the product or service is provided to the State. The Local Agency shall be solely liable for paying such taxes as the State is prohibited from paying for or reimbursing the Local Agency for them. N. Third Party Beneficiaries Enforcement of this Agreement and all rights and obligations hereunder are reserved solely to the Parties, and not to any third party. Any services or benefits which third parties receive as a result of this Agreement are incidental to the Agreement, and do not create any rights for such third parties. O. Waiver Waiver of any breach of a term, provision, or requirement of this Agreement, or any right or remedy hereunder, whether explicitly or by lack of enforcement, shall not be construed or deemed as a waiver of any subsequent breach of such term, provision or requirement, or of any other term, provision, or requirement. THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK 11P 6720100 of 23 9- 267 -20 26. COLORADO SPECIAL PROVISIONS The Special Provisions apply to all Agreements except where noted in italics. 1. CONTROLLER'S APPROVAL. CRS §24 -30 -202 (1). This Agreement shall not be deemed 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 Agreement 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(b) and 2671 et seq., as applicable now or hereafter amended. 4. INDEPENDENT CONTRACTOR The Local Agency shall perform its duties hereunder as an independent contractor and not as an employee. Neither The Local Agency nor any agent or employee of The Local Agency shall be deemed to be an agent or employee of the State. The Local Agency 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 The Local Agency or any of its agents or employees. Unemployment insurance benefits shall be available to The Local Agency and its employees and agents only if such coverage is made available by The Local Agency or a third party. The Local Agency shall pay when due all applicable employment taxes and income taxes and local head taxes incurred pursuant to this Agreement. The Local Agency shall not have authorization, express or implied, to bind the State to any Agreement, liability or understanding, except as expressly set forth herein. The Local Agency 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. The Local Agency 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 Agreement. 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 Agreement, 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 Agreement shall not be used for the acquisition, operation, or maintenance of computer software in violation of federal copyright laws or applicable licensing restrictions. The Local Agency hereby certifies and warrants that, during the term of this Agreement and any extensions, The Local Agency has and shall maintain in place appropriate systems and controls to prevent such improper use of public funds. If the State determines that The Local Agency is in violation of this provision, the State may exercise any remedy available at law or in equity or under this Agreement, including, without limitation, immediate termination of this Agreement and any remedy consistent with federal copyright laws or applicable licensing restrictions. 9. EMPLOYEE FINANCIAL 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 Agreement. 11/ 672010 of 23 9 -2 -21 The Local Agency has no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance of The Local Agency's services and The Local Agency 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] The Local Agency certifies, warrants, and agrees that it does not knowingly employ or contract with an illegal alien who shall perform work under this Agreement and shall confirm the employment eligibility of all employees who are newly hired for employment in the United States to perform work under this Agreement, through participation in the E- Verify Program or the State program established pursuant to CRS §8- 17.5- 102(5)(c), The Local Agency shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or enter into a contract with a subcontractor that fails to certify to The Local Agency that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement. The Local Agency (a) shall not use E- Verify Program or State program procedures to undertake pre - employment screening of job applicants while this Agreement is being performed, (b) shall notify the subcontractor and the contracting State agency within three days if The Local Agency has actual knowledge that a subcontractor is employing or contracting with an illegal alien for work under this Agreement, (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 The Local Agency participates in the State program, The Local Agency shall deliver to the contracting State agency, Institution of Higher Education or political subdivision, a written, notarized affirmation, affirming that The Local Agency has examined the legal work status of such employee, and shall comply with all of the other requirements of the State program. If The Local Agency 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 Agreement for breach and, if so terminated, The Local Agency shall be liable for damages. 12. PUBLIC CONTRACTS WITH NATURAL PERSONS. CRS §24- 76.5 -101. The Local Agency, 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 Agreement. SPs Effective 1/1/09 THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK 1 1 / 6720 110 of 23 9- 267 -22 27. SIGNATURE PAGE Agreement Routing Number 11 HA3 25016 THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT Persons signing for The Local Agency hereby swear and affirm that they are authorized to act on The Local Agency's behalf and acknowledge that the State is relying on their representations to that effect. THE LOCAL AGENCY STATE OF COLORADO TOWN OF VAIL Bill Ritter, Jr. GOVERNOR By. Colorado Department of Transportation (Name Printed) Title: Russell George, Executive Director *Signature By: Pam Hutton — CDOT Chief Engineer Attested by LEGAL REVIEW John W. Suthers, Attorney General By: (Name Printed) By: Title: Signature - Assistant Attorney General *Signature ALL AGREEMENTS REQUIRE APPROVAL BY THE STATE CONTROLLER CRS §24 -30 -202 requires the State Controller to approve all State Agreements. This Agreement is not valid until signed and dated below by the State Controller or delegate. The Local Agency is not authorized to begin performance until such time. If The Local Agency begins performing prior thereto, the State of Colorado is not obligated to pay The Local Agency for such performance or for any goods and /or services provided hereunder. STATE CONTROLLER David J. McDermott, CPA By: Colorado Department of Transporation Date: Paqqe 23 of 23 11/1072010 9 -2 -23 8. EXHIBIT A - SCOPE OF WORK COLORADO DEPARTMENT OF TRANSPORTATION Orig.Date: 07/21/2010 Project Code # (SA#): 18033 STIP #: SR35771 DESIGN DATA Rev.Date: Project#: BRO M306-005 Revision #: 0 PE Project Code: Page 1 to 3 Region #: 03 Project Description: Matterhorn Bridge- Town of Vail Status: ® Preliminary ❑ Final ❑ Revised County: 037 Submitted By PM: KILLIANB Approved by Program Engineer: Date: Municipality: Vail System Code: Z -Not on any Federal -Aid Highway Revised by: Oversight By: O- OtherS Date: Planned Length: 0.150 Geographic Location: MATTERHORN RD, TOWN OF VAIL Type of Terrain: Mountainous Description of Proposed Constructionflmprovement(Attach map showing site location) REPLACEMENT OF DEFICIENT BRIDGE STRUCTURE Project Characteristics (Proposed). Median (Type): ❑ Depressed ❑ Painted ❑ Raised ❑ None ❑ Lighting ❑ Handicap Ramps ❑ Traffic Control Signals ❑ Striping ❑ Curb and Gutter ❑ Curb Only ❑ Left -Turn Slots ❑ Continuous Width= Sidwalk Width= Bikeway Width= ❑ Right -Turn Slots ❑ Continuous Width= Parking Lane Width= ❑ Detours Signing ❑ Construction ❑ Permanent Landscaping requirements (description): ❑ Other (description): Right of Way Yes/No Est. # Utilities (list names of known utility companies) ROW &/or Perm. Easement Required No Relocation Required No Temporary Easement Required: No Changes in Access: No Changes to Connecting Roads: No Railroad Crossings #of Crossings: Recommendations : Environmental Type: Approved On: Project Code # Cleared Under: Project # Cleared Under: N -CE Nonprogrammatic Comments: Coordination Withdrawn Lands (Power Sites, Reservoirs, Etc.) Cleared through BLM or Forest Service Office Irrigation Ditch Name: New Traffic Ordinance Required ❑ Modify Schedule of Existing Ordinance Muncipality: Vail Other: Construction Method Advertised By: NoAd Reason: Entity /Agency Contact Name: Phone #: Local Safety Considerations Project Under: Guardrail meets current standards: No ❑ Variance in Minimum Design Standards Required ❑ Safety project not all standards Comments: ❑ Justification Attached ❑ Request to be Submitte addressed Bridge(see item 12) See Remarks ❑ Stage Construction (explain in remarks) 3R projects Safety Evaluation Complete (date): 11/16%2010 of 3 9 -2 -24 Page 2 of 3 I Project Code #(SA #): Project #: Revise date: 18033 BRO M306 -005 Use Columns A, B, C D and /or E to identify faclity described below A= B= C= D= E_ Traffic Current Year AD DH DHV A Truck Future Year AD DH Facility Location ❑ Industrial ❑ Commercial ❑ Industrial ❑ Commercial ❑ Industrial ❑ Commercial ❑ Industrial ❑ Commercial Industrial ❑ Commercial Q Residential Q Other Q Residential Q Other Q Residential Q Other Q Residential Q Other _ Residential 0 Other r Roadway Class Route Refpt 0.000 Endrefpt 0.000 Functional Classification L Facility type U Rural Code 1 Design Standards Standard Existing Propssec Ultman; Standard Existing Fropcsed Ultimate Standard =✓:istlng Proposed Urinate Standard Existing Proposed Ultmate Standard Ealsing Proposed Ultimate Design Variance Required (substandard items are identified with an in 1 column & clarify as design variance with CDDT Form #464) Width of Travel Lanes Shoulder width Voutside Shoulder width rUoutside Design Speed Cross Slope Max.superelevation rate Min. Radius Min. Horizontal SSD Min. Vertical SSD Max Grade Design Decision Letter Required (substandard items are indentified with an in r at column & darifywith decision letter) Typical Section Type # of Travel Lanes Side Slope Dist. ( "z ") Median Width Posted Speed 11/16/2010 of 3 9 -2 -25 Page 3 of 3 Project Code #(SA #): Project #: Revise Date: 1 18033 BRO M306 -005 Major Structures S= to stay, R= to be removed, P= proposed new structure Reference Standard Structure Structural Horizontal Vertical Year Structure ID# Length Point Feature Intersected Width Roadway Capacity Clearance Clearance Built Proposed Treament of Bridges to Remain in Place(address bridge rail, capacity, and allowable surfacing thickness): Remarks The Town of Vail plans to remove and replace the Vail Matterhorn Bridge, which is located within the Town limits of the Town of Vail. This project will consist oftotal removal ofthe existing structure and a new bridge will be constructed in its place. This is due to the bridge rating and scour issues related to the existing. structure. The new bridge will be two lanes like the current structure and will be a concrete slab and girder bridge type. The approximate dimensions are 60 #ft length and 35-ft wide and will accommodate pedestrians with a sidewalk. 11/16/2010 of 3 9 -2 -26 29. EXHIBIT B - LOCAL AGENCY RESOLUTION LOCAL AGENCY ORDINANCE or RESOLUTION 11/16%2010 of 1 9 -2 -27 30. EXHIBIT C — FUNDING PROVISIONS A. Cost of Work Estimate The Local Agency has estimated the total cost the Work to be $118.733.00 which is to be funded as follows: 1 BUDGETED FUNDS a. Federal Funds $94,986.00 (80% of Participating Costs) b. Local Agency Matching Funds $23,747.00 (20% of Participating Costs) d. Local Agency Matching for CDOT - Incurred Non - Participating Costs [AND /OR] Overmatch $0.00 (Including Non - Participating Indirects) TOTAL BUDGETED FUNDS $118,733.00 2 ESTIMATED CDOT- INCURRED COSTS a. Federal Share $0.00 ( of Participating Costs) b. Local Agency Local Agency Share of Participating Costs $0.00 Non - Participating Costs (Including Non - Participating Indirects) $0.00 Estimated to be Billed to Local Agency $0.00 TOTAL ESTIMATED CDOT- INCURRED COSTS $0.00 3 ESTIMATED PAYMENT TO LOCAL AGENCY a. Federal Funds Budgeted (1a) $94,986.00 b. Less Estimated Federal Share of CDOT- Incurred Costs (2a) $0.00 TOTAL ESTIMATED PAYMENT TO LOCAL AGENCY $94,986.00 FOR CDOT ENCUMBRANCE PURPOSES Estimated Encumbrance Amount *Note — Federal Funds are currently not available at this time. Funds will be encumbered at a later date by formal amendment or option letter.* $118,733.00 Less ROW Acquisition 3111 and /or ROW Relocation 3109 $0.00 Net to be encumbered as follows: $0.00 WBS Element 18033.10.30 Design 3020 $0.00 WBS Element 18033.20.10 Const 3301 $0.00 Pagqe 1 of 2 11/ 16/9010 9 -2 -28 B. Matching Funds The matching ratio for the federal participating funds for this Work is 80% federal -aid funds (CFDA #20 2050) to 20% Local Agency funds, it being understood that such ratio applies only to the $118,733.00 that is eligible for federal participation, it being further understood that all non - participating costs are borne by the Local Agency at 100 %. If the total participating cost of performance of the Work exceeds $118,733.00, and additional federal funds are made available for the Work, the Local Agency shall pay 20% of all such costs eligible for federal participation and 100% of all non - participating costs; if additional federal funds are not made available, the Local Agency shall pay all such excess costs. If the total participating cost of performance of the Work is less than $118,733.00, then the amounts of Local Agency and federal -aid funds will be decreased in accordance with the funding ratio described herein. The performance of the Work shall be at no cost to the State. C. Maximum Amount Payable The maximum amount payable to the Local Agency under this Agreement shall be $94,986.00 (For CDOT accounting purposes, the federal funds of $94,986.00 and Local Agency matching funds of $23,747.00 will be encumbered for a total encumbrance of $118,733.00), unless such amount is increased by an appropriate written modification to this Agreement executed before any increased cost is incurred. *Note — Federal Funds are currently not available at this time. Funds will be encumbered at a later date by formal amendment or option letter.* It is understood and agreed by the parties hereto that the total cost of the Work stated hereinbefore is the best estimate available, based on the design data as approved at the time of execution of this Agreement, and that such cost is subject to revisions (in accord with the procedure in the previous sentence) agreeable to the parties prior to bid and award. D. Single Audit Act Amendment All state and local government and non - profit organization Sub -The Local Agencys receiving more than $500,000 from all funding sources defined as federal financial assistance for Single Audit Act Amendment purposes, shall comply with the audit requirements of OMB Circular A- 133 (Audits of States, Local Governments and Non - Profit Organizations) see also, 49 C.F.R. 18.20 through 18.26. The Single Audit Act Amendment requirements applicable to Sub -The Local Agencys receiving federal funds are as follows: i. Expenditure less than $500,000 If the Sub -The Local Agency expends less than $500,000 in Federal funds (all federal sources, not just Highway funds) in its fiscal year then this requirement does not apply. ii. Expenditure exceeding than $500,000- Highway Funds Only If the Sub -The Local Agency expends more than $500,000 in Federal funds, but only received federal Highway funds (Catalog of Federal Domestic Assistance, CFDA 20.205) then a program specific audit shall be performed. This audit will examine the "financial" procedures and processes for this program area. iii. Expenditure exceeding than $500,000 - Multiple Funding Sources If the Sub -The Local Agency expends more than $500,000 in Federal funds, and the Federal funds are from multiple sources (FTA, HUD, NPS, etc.) then the Single Audit Act applies, which is an audit on the entire organization /entity. iv. Independent CPA Single Audit shall only be conducted by an independent CPA, not by an auditor on staff. An audit is an allowable direct or indirect cost. Paqe 2 of 2 11/16/2010 9 -2 -29 31. EXHIBIT D — OPTION LETTER SAMPLE IGA OPTION LETTER (This option has been created by the Office of the State Controller for CDOT use only) NOTE: This option is limited to the specific contract scenarios listed below AND may be used in place of exercising a formal amendment. Date: State Fiscal Year: Option Letter No. CLIN Routing # Original Contract CMS # Option Letter CMS # Original Contract SAP # Option Letter SAP # Vendor name: A. SUBJECT: (Choose applicable options listed below AND in section Band delete the rest) 1. Level of service change within current term due to an unexpected Local overmatch on an overbid situation ONLY; 2. Option to add phasing to include Design, Construction, Environmental, Utilities, ROW incidentals or Miscellaneous ONLY (does not apply to Acquisition /Relocation or Railroads); 3. Option to update funding (a new Exhibit C must be attached with the option letter and shall be labeled C -1 (future changes for this option shall be labeled as follows: C -2, C -3, C -4, etc.) B. REQUIRED PROVISIONS. All Option Letters shall contain the appropriate provisions set forth below: (Insert the followinq language for use with Option #1): In accordance with the terms of the original Agreement ( insert FY, Agency code & CLIN routing # of Basic Contract) between the State of Colorado, Department of Transportation and (insert the Local Agency's name here the State hereby exercises the option to record a level of service change due to unexpected overmatch dollars due to an overbid situation. The Agreement is now increased by ( indicate additional dollars here specified in Paragraph /Section /Provision of the original Agreement. (Insert the following lanquaqe for use with Option #2): In accordance with the terms of the original Agreement ( insert FY, Agency code & CLIN routing # Basic Contract) between the State of Colorado, Department of Transportation and (insert the Local Agency's name here the State hereby exercises the option to add an overlapping phase in indicate Fiscal Year here that will include ( describe which phase will be added and include all that apply — Design, Construction, Environmental, Utilities, ROW incidentals or Miscellaneous Total funds for this Agreement remain the same ( indicate total dollars here as referenced in Paragraph /Section /Provision /Exhibit of the original Agreement. (Insert the following lanquaqe for use with Option #3): In accordance with the terms of the original Agreement ( insert FY, Agency code & CLIN routing # of Basic Contract) between the State of Colorado, Department of Transportation and (insert the Local Agency's name here the State hereby exercises the option to update funding based on changes from state, federal, local match and /or local agency overmatch funds. The Agreement is now ( select one: increased and /or decreased) by ( insert dollars here specified in Paragraph/- Section /- Provision /Exhibit of the original Agreement. A new Exhibit C -1 is made part of the original Agreement and replaces Exhibit C. (The following is a NOTE only so please delete when Pagqe 1 of 2 11 /16 /ZO10 9 -2 -30 using this option: future changes for this option for Exhibit C shall be labeled as follows: C -2, C -3, C -4, etc.) (The following language must be included on ALL options): The amount of the current Fiscal Year contract value is ( increased /decreased by ($ amount of chap e to a new Agreement value of ($ ) to satisfy services /goods ordered under the Agreement for the current fiscal year ( indicate Fiscal Year) The first sentence in Paragraph /Section /Provision is hereby modified accordingly. The total Agreement value to include all previous amendments, option letters, etc. is The effective date of this Option Letter is upon approval of the State Controller or delegate. APPROVALS: For the The Local Agency: Legal Name of the Local Agency By: Print Name of Authorized Individual Signature: Date: Title: Official Title of Authorized Individual State of Colorado: Bill Ritter, Jr., Governor By: Date: Executive Director, Colorado Department of Transportation ALL CONTRACTS MUST BE APPROVED BY THE STATE CONTROLLER CRS §24 -30 -202 requires the State Controller to approve all State Contracts. This Agreement is not valid until signed and dated below by the State Controller or delegate. Contractor is not authorized to begin performance until such time. If the Local Agency begins performing prior thereto, the State of Colorado is not obligated to pay the Local Agency for such performance or for any goods and /or services provided hereunder. State Controller David J. McDermott, CPA By: Date: Form Updated: June 12, 2008 Pagqe 2 of 2 ,,/16/ 9 -2 -31 32. EXHIBIT E — LOCAL AGENCY CONTRACT ADMINISTRATION CHECKLIST LOCAL AGENCY CONTRACT ADMINISTRATION CHECKLIST The following checklist has been developed to ensure that all required aspects of a project approved for Federal funding have been addressed and a responsible party assigned for each task. After a project has been approved for Federal funding in the Statewide Transportation Improvement Program, the Colorado Department of Transportation (CDOT) Project Manager, Local Agency project manager, and CDOT Resident Engineer prepare the checklist. It becomes a part of the contractual agreement between the Local Agency and CDOT. The CDOT Agreements Unit will not process a Local Agency agreement without this completed checklist. It will be reviewed at the Final Office Review meeting to ensure that all parties remain in agreement as to who is responsible for performing individual tasks. xvi Paqe 1 of 5 11/16/2010 9 -2 -32 COLORADO DEPARTMENT OF TRANSPORTATION LOCAL AGENCY CONTRACT ADMINISTRATION CHECKLIST Project No. STIP No. Project Code Region BRO C306 -005 TBD 18033 3 Project Location Date Mattorhorn Bridge - Town of Vail 1 6/15/09 Project Description Replacement of off system bridge on Matterhorn Rd Local Agency Local Agency Project Manager Town of Vail Chad Salli CDOT Resident Engineer CDOT Project Manager Martha Miller Brian Killian /Karen Berdoulay INSTRUCTIONS: This checklist shall be utilized to establish the contract administration responsibilities of the individual parties to this agreement. The checklist becomes an attachment to the Local Agency agreement. Section numbers correspond to the applicable chapters of the CDOT Local Agency Manual. The checklist shall be prepared by placing an "X" under the responsible party, opposite each of the tasks. The `X" denotes the party responsible for initiating and executing the task. Only one responsible party should be selected. When neither CDOT nor the Local Agency is responsible for a task, not applicable (NA) shall be noted. In addition, a " #" will denote that CDOT must concur or approve. Tasks that will be performed by Headquarters staff will be indicated. The Regions, in accordance with established policies and procedures, will determine who will perform all other tasks that are the responsibility of CDOT. The checklist shall be prepared by the CDOT Resident Engineer or the CDOT Project Manager, in cooperation with the Local Agency Project Manager, and submitted to the Region Program Engineer. If contract administration responsibilities change, the CDOT Resident Engineer, in cooperation with the Local Agency Project Manager, will prepare and distribute a revised checklist. RESPONSIBLE NO. DESCRIPTION OF TASK PARTY TIP / STIP AND LONG -RANGE PLANS LA CDOT 2.1 1 Review Project to ensure it is consist with STIP and amendments thereto X FEDERAL FUNDING OBLIGATION AND AUTHORIZATION 4.1 Authorize funding by phases (CDOT Form 418 - Federal -aid Program Data. Requires FHWA X concurrencerinvolv2Tent PROJECT DEVELOPMENT 5.1 1 Prepare Design Data - CDOT Form 463 X 5.2 Prepare Local A enc /CDOT Inter - Governmental Agreement see also Chapter 3 X 5.3 Conduct Consultant Selection /Execute Consultant Agreement X 5.4 Conduct Design Scoping Review Meeting X 5.5 Conduct Public Involvement X 5.6 Conduct Field Inspection Review FIR X 5.7 Conduct Environmental Processes (may require FHWA concurrence /involvement X 5.8 Ac uire Right-of-Way ma re quire FHWA concurrence /involvement X 5.9 Obtain Utility and Railroad A reements X 5.10 Conduct Final Office Review FOR X 5.11 Justify Force Account Work by the Local Agency X 5.12 Justify Proprietary, Sole Source, or LoGalAgency Furnished Items X 5.13 Document Design Exceptions - CDOT Form 464 X 5.14 Pre are Plans, Specifications and Construction Cost Estimates X 5.15 Ensure Authorization of Funds for Construction X Previous editions are obsolete and may not be used CDOT Form 1243 09/06 Pagel of 4 11/16%2010 of 5 9 -2 -33 RESPONSIBLE NO. DESCRIPTION OF TASK PARTY LA CDOT PROJECT DEVELOPMENT CIVIL RIGHTS AND LABOR COMPLIANCE 6.1 Set Underutilized Disadvantaged Business Enterprise (UBDE) Goals for Consultant and X X Construction Contracts CDOT Region EEO /Civil Rights Specialist 6.2 Determine Applicability of Davis -Bacon Act X This project ® is ❑ is not exempt from Davis -Bacon requirements as determined by the functional classification of the project location (Projects located on local roads and rural minor collectors may be exempt.) Martha Miller 6/18/10 CDOT Resident Engineer (Signature on File Date 6.3 Set On- the -Job Training Goals. Gnat is zero if total construction is less than $1 million (CDOT X Region EEO /Civil Ri hts Specialist 6.4 Title VI Assurances X Ensure the correct Federal Wage Decision, all required Disadvantaged Business Enterprise /On- the -Job Training special provisions and FHWA Form 1273 are included in the Contract CDOT Resident Engineer) X ADVERTISE, BID AND AWARD 7.1 Obtain A2proval for Advertisement Period of Less Than Three Weeks X 7.2 Advertise for Bids _ X 7.3 Distribute "Advertisement Set" of Plans and Specifications X 7.4 Review Worksite and Plan Details with Prospective Bidders While Project Is Under X Advertisement 7.5 Open Bids X 7.6 Process Bids for Compliance Check CDOT Form 715 - Certificate of Proposed Underutilized DBE Participation when the low bidder meets UDBE goals X Evaluate CDOT Form 718 - Underutilized DBE Good Faith Effort Documentation and determine if the Contractor has made a good faith effort when the low bidder does not meet X DBE goals Submit required documentation for CDOT award concurrence X 7.7 Concurrence from CDOT to Award X 7.8 A rove Re'ection of Low Bidder X 7.9 Award Contract X 7.10 Provide "Award" and "Record" Sets of Plans and Specifications X CONSTRUCTION MANAGEMENT 8:1 Issue Notice to Proceed to the Contractor X 8.2 Project Safety X 8.3 Conduct Conferences: Pre - Construction Conference (Appendix B) X Pre -survey • Construction staking X • Monumentation X Partnering Optional X Structural Concrete Pre -Pour (Agenda is in CDOT Construction Manual X Concrete Pavement Pre-Paving (Agenda is in CDOT Construction Manual X HMA Pre-Paving A enda is in CDOT Construction Manual X 8.4 Develop and distribute Public Notice of Planned Construction to media and local residents X 8.5 Supervise Construction A Professional Engineer (PE) registered in Colorado, who will be "in responsible charge of construction supervision." Chad Salli PE 970 - 376 -2386 Local Agency Professional Engineer or Phone number X CDOT Resident Engineer CDOT Form 1243 09106 Pa9e2 of 4 Previous editions are obsolete and may not be used 11/16/2010 of 5 9 -2 -34 RESPONSIBLE NO. DESCRIPTION OF TASK PARTY LA CDOT Provide competent, experienced staff who will ensure the Contract work is constructed in accordance with the pfans and specifications X Construction inspection and documentation X 8.6� Approve Shop Drawings X 8.7 Perform Traffic Control Inspections X 8.8 Perform Construction Surveying X 8.9 Monument Right-of-Way X 8.10 Prepare and Approve Interim and Final Contractor Pay Estimates X Provide the name and phone number of the person authorized for this task. Chad Salli 970- 376 -2386 Local Agency Representative Phone number 8.11 Prepare and Approve Interim and Final Utility and Railroad Billings X 8.12 Prepare Local Agency Reimbursement Requests X 8.13 Prepare and Authorize Change Orders X 8.14 Approve All Change Orders X 8.15 Monitor Project Financial Status X 8.16 Prepare and Submit Monthly Progress Reports X 8.17 Resolve Contractor Claims and Disputes X 8.18 Conduct Routine and Random Project Reviews Provide the name and phone number of the person responsible for this task. X Martha Miller 970- 328 -6385 CDOT Resident Engineer Phone number MATERIALS 9.1 Conduct Materials Pre - Construction Meeting X 92 Complete CDOT Form 250 - Materials Documentation Record • Generate form, which includes determining the minimum number of required tests and X applicable material submittals for all materials placed on the project • Update the form as work progresses X • Complete and distribute form after work is completed X 9.3 Perform Project Acceptance Samples and Tests X 9.4 Perform Laboratory Verification Tests X 9.5 Accept Manufactured Products X Inspection of structural components: • Fabrication of structural steel and pre- stressed concrete structural components X • Bridge modular expansion devices (0" to 6" or greater) X • Fabrication of bearing devices X 9.6 Approve Sources of Materials X X 9.7 Independent Assurance Testing (IAT), Local Agency Procedures ®CDOT Procedures ❑ • Generate IAT schedule X • Schedule and provide notification X • Conduct IAT X 9.8 Approve mix designs • Concrete X X • Hot mix asphalt X X 9.9 Check Final Materials Documentation X 9.10 Complete and Distribute Final Materials Documentation X CDOT Form 1243 09106 Page3 of 4 Previous editions are obsolete and may not be used Pa 4 of 5 11/16/2010 9 -2 -35 CONSTRUCTION CIVIL RIGHTS AND LABOR COMPLIANCE 10.1 Fulfill Project Bulletin Board and Pre- Construction Packet Re uirements X 10.2 Process CDOT Form 205 - Sublet Permit Application Review and sign completed CDOT Form 205 for each subcontractor, and submit to X EEO /Civil Rights Specialist 10.3 Conduct Equal Employment Opportunity and Labor Compliance Verification Employee X Interviews. Complete CDOT Form 280 10.4 Monitor Disadvantaged Business Enterprise Participation to Ensure Compliance with the X "Commercially Useful Function" Requirements 10.5 Conduct Interviews When Project Utilizes On- the -Job Trainees. Complete CDOT Form 200 - X OJT Training Questionnaire 10.6 Check Certified Payrolls Contact the Region EEO /Civil Rights Specialists for training requirements.) X 10.7 Submit FHWA Form 1391 - Highway Construction Contractor's Annual EEO Report X FINALS 11.1 Conduct Final Project Inspection. Complete and submit CDOT Form 1212 - Final X Acceptance Report (Resident Engineer with mandatory Local Agency participation.) 11.2 Write Final Project Acceptance Letter X 11.3 Advertise for Final Settlement X 11.4 Prepare and Distribute Final As- Constructed Plans X 11.5 Prepare EEO Certification X 11.6 Check Final Quantities, Plans, and Pay Estimate; Check Project Documentation; and submit X Final Certifications 11.7 Check Material Documentation and Accept Final Material Certification See Chapter 9 X 11.8 Obtain CDOT Form 17 from the Contractor and Submit to the Resident Engineer X 11.9 Obtain FHWA Form 47 - Statement of Materials and Labor Used ... from the Contractor N!A 11.10 Complete and Submit CDOT Form 1212 Final Acceptance Report b CDOT) X 11,11 Process Final Payment X 11.12 Complete and Submit CDOT Form 950 Pro ect Closure X 11.13 Retain Project Records for Six Years from Date of Project Closure X 11.14 Retain Final Version of Local A enc Contract Administration Checklist X cc: CDOT Resident Engineer /Project Manager CDOT Region Program Engineer CDOT Region EEO /Civil Rights Specialist CDOT Region Materials Engineer CDOT Contracts and Market Analysis Branch Local Agency Project Manager Previous editions are obsolete and may not be used CDOT Form 1243 09/08 Page4 of 4 11/16/2010 of 5 9 -2 -36 33. EXHIBIT F — CERTIFICATION FOR FEDERAL -AID CONTRACTS The Local Agency certifies, by signing this Agreement, to the best of its knowledge and belief, that: No Federal appropriated funds have been paid or will be paid, by or on behalf or the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, Agreement, loan, or cooperative agreement. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or of Congress, or an employee of a Member of Congress in connection with this Federal contract, Agreement, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The prospective participant also agree by submitting his or her bid or proposal that he or she shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such sub - recipients shall certify and disclose accordingly. Required by 23 CFR 635.112 Paqe 1 of 1 11/16/2010 9 -2 -37 34. EXHIBIT G — DISADVANTAGED BUSINESS ENTERPRISE SECTION 1. Policy. It is the policy of the Colorado Department of Transportation (CDOT) that disadvantaged business enterprises shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with Federal funds under this agreement, pursuant to 49 CFR Part 23. Consequently, the 49 CFR Part IE DBE requirements the Colorado Department of Transportation DBE Program (or a Local Agency DBE Program approved in advance by the State) apply to this agreement. SECTION 2. DBE Obligation. The recipient or its the Local Agency agrees to ensure that disadvantaged business enterprises as determined by the Office of Certification at the Colorado Department of Regulatory Agencies have the maximum opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with Federal funds provided under this agreement. In this regard, all participants or contractors shall take all necessary and reasonable steps in accordance with the CDOT DBE program (or a Local Agency DBE Program approved in advance by the State) to ensure that disadvantaged business enterprises have the maximum opportunity to compete for and perform contracts. Recipients and their contractors shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of CDOT assisted contracts. SECTION 3 DBE Program. The Local Agency (sub- recipient) shall be responsible for obtaining the Disadvantaged Business Enterprise Program of the Colorado Department of Transportation, 1988, as amended, and shall comply with the applicable provisions of the program. (If applicable). A copy of the DBE Program is available from and will be mailed to the Local Agency upon request: Business Programs Office Colorado Department of Transportation 4201 East Arkansas Avenue, Room 287 Denver, Colorado 80222 -3400 Phone: (303) 757 -9234 revised 1/22/98 Required by 49 CFR Part 23.41 Paqe 1 of 1 11/16/2010 9 -2 -38 35. EXHIBIT H — LOCAL AGENCY PROCEDURES FOR CONSULTANT SERVICES THE LOCAL AGENCY SHALL USE THESE PROCEDURES TO IMPLEMENT FEDERAL -AID PROJECT AGREEMENTS WITH PROFESSIONAL CONSULTANT SERVICES Title 23 Code of Federal Regulations (CFR) 172 applies to a federally funded local agency project agreement administered by CDOT that involves professional consultant services. 23 CFR 172.1 states "The policies and procedures involve federally funded contracts for engineering and design related services for projects subject to the provisions of 23 U.S.C. 112(a) and are issued to ensure that a qualified consultant is obtained through an equitable selection process, that prescribed work is properly accomplished in a timely manner, and at fair and reasonable cost" and according to 23 CFR 172.5 "Price shall not be used as a factor in the analysis and selection phase." Therefore, local agencies must comply with these CFR requirements when obtaining professional consultant services under a federally funded consultant contract administered by CDOT. CDOT has formulated its procedures in Procedural Directive (P.D.) 400.1 and the related operations guidebook titled "Obtaining Professional Consultant Services ". This directive and guidebook incorporate requirements from both Federal and State regulations, i.e., 23 CFR 172 and CRS §24 -30 -1401 et seq. Copies of the directive and the guidebook may be obtained upon request from CDOT's Agreements and Consultant Management Unit. [Local agencies should have their own written procedures on file for each method of procurement that addresses the items in 23 CFR 172]. Because the procedures and laws described in the Procedural Directive and the guidebook are quite lengthy, the subsequent steps serve as a short -hand guide to CDOT procedures that a local agency must follow in obtaining professional consultant services. This guidance follows the format of 23 CFR 172. The steps are: 1. The contracting local agency shall document the need for obtaining professional services. 2. Prior to solicitation for consultant services, the contracting local agency shall develop a detailed scope of work and a list of evaluation factors and their relative importance. The evaluation factors are those identified in C.R.S. 24 -30 -1403. Also, a detailed cost estimate should be prepared for use during negotiations. 3. The contracting agency must advertise for contracts in conformity with the requirements of C.R.S. 24 -30 -1405. The public notice period, when such notice is required, is a minimum of 15 days prior to the selection of the three most qualified firms and the advertising should be done in one or more daily newspapers of general circulation. 4. The request for consultant services should include the scope of work, the evaluation factors and their relative importance, the method of payment, and the goal of 10% for Disadvantaged Business Enterprise (DBE) participation as a minimum for the project. 5. The analysis and selection of the consultants shall be done in accordance with CRS §24 -30- 1403. This section of the regulation identifies the criteria to be used in the evaluation of CDOT pre - qualified prime consultants and their team. It also shows which criteria are used to short - list and to make a final selection. The short -list is based on the following evaluation factors: a. Qualifications, b. Approach to the Work, c. Ability to furnish professional services. d. Anticipated design concepts, and e. Alternative methods of approach for furnishing the professional services. Pagqe 2 of 1 11/16/9010 9 -2 -39 Evaluation factors for final selection are the consultant's: a. Abilities of their personnel, b. Past performance, c. Willingness to meet the time and budget requirement, d. Location, e. Current and projected work load, f. Volume of previously awarded contracts, and g. Involvement of minority consultants. 6. Once a consultant is selected, the local agency enters into negotiations with the consultant to obtain a fair and reasonable price for the anticipated work. Pre - negotiation audits are prepared for contracts expected to be greater than $50,000. Federal reimbursements for costs are limited to those costs allowable under the cost principles of 48 CFR 31. Fixed fees (profit) are determined with consideration given to size, complexity, duration, and degree of risk involved in the work. Profit is in the range of six to 15 percent of the total direct and indirect costs. 7. A qualified local agency employee shall be responsible and in charge of the Work to ensure that the work being pursued is complete, accurate, and consistent with the terms, conditions, and specifications of the contract. At the end of Work, the local agency prepares a performance evaluation (a CDOT form is available) on the consultant. 8. Each of the steps listed above is to be documented in accordance with the provisions of 49 CFR 18.42, which provide for records to be kept at least three years from the date that the local agency submits its final expenditure report. Records of projects under litigation shall be kept at least three years after the case has been settled. CRS § §24 -30 -1401 through 24 -30 -1408, 23 CFR Part 172, and P.D. 400.1, provide additional details for complying with the preceeding eight (8) steps. Pae 1 of 2 11 /19 /2010 9 -2 -40 36. EXHIBIT I - FEDERAL -AID CONTRACT PROVISIONS FHWA -1273 Electronic version -- March 10, 1994 FHWA Form 1273 REQUIRED CONTRACT PROVISIONS FEDERAL -AID CONSTRUCTION CONTRACTS I. General 1 (Applicable to all Federal -aid construction contracts and to all related II. Nondiscrimination ..................................................... ............................... 1 subcontracts of $10,000 or more.) III. Non - segregated Facilities ........................................ ............................... 3 IV.Payment of Predetermined Minimum Wage ............ ............................... 3 1. Equal Employment Opportunity: Equal employment opportunity V.Statements and Payrolls .......................................... ............................... 6 (EEO) requirements not to discriminate and to take affirmative action to VI. Record of Materials, Supplies, and Labor ................ ............................... 6 assure equal opportunity as set forth under laws, executive orders, VII. Subletting or Assigning the Contract ..... ............................... 7 rules, regulations (28 CFR 35, 29 CFR 1630 and 41 CFR 60) and orders VIII. Safety: Accident Prevention .................. ............................... 7 of the Secretary of Labor as modified by the provisions prescribed IX.False Statements Concerning Highway Projects ..... ............................... 7 herein, and imposed pursuant to 23 U.S.C. 140 shall constitute the EEO X. Implementation of Clean Air Act and Federal and specific affirmative action standards for the contractor's project Water Pollution Control Act ...................................... ............................... 8 activities under this Agreement. The Equal Opportunity Construction XI.Certification Regarding Debarment, Suspension, Contract Specifications set forth under 41 CFR 60 -4.3 and the Ineligibility, and Voluntary Exclusion ........................ ............................... 8 provisions of the American Disabilities Act of 1990 (42 U.S.C. 12101 et XII. Certification Regarding Use of Contract Funds for sec.) set forth under 28 CFR 35 and 29 CFR 1630 are incorporated by Lobbying .................................................................... ............................... 9 reference in this Agreement. In the execution of this Agreement, the contractor agrees to comply with the following minimum specific ATTACHMENTS requirement activities of EEO: A.Employment Preference for Appalachian Contracts a. The contractor will work with the State highway agency (SHA) (included in Appalachian contracts only) and the Federal Government in carrying out EEO obligations and in their review of his /her activities under the contract. L GENERAL b. The contractor will accept as his operating policy the following 1. These contract provisions shall apply to all work performed on the statement: contract by the contractor's own organization and with the assistance of workers under the contractor's immediate superintendence and to all "It is the policy of this Company to assure that applicants are work performed on the contract by piecework, station work, or by employed, and that employees are treated during employment, subcontract. without regard to their race, religion, sex, color, national origin, age or disability. Such action shall include: employment, upgrading, 2. Except as otherwise provided for in each section, the contractor demotion, or transfer; recruitment or recruitment advertising; layoff shall insert in each subcontract all of the stipulations contained in these or termination; rates of pay or other forms of compensation; and Required Contract Provisions, and further require their inclusion in any selection for training, including apprenticeship, pre- apprenticeship, lower tier subcontract or purchase order that may in turn be made. The and /or on- the -job training." Required Contract Provisions shall not be incorporated by reference in any case. The prime contractor shall be responsible for compliance by 2. EEO Officer: The contractor will designate and make known to the any subcontractor or lower tier subcontractor with these Required SHA contracting officers an EEO Officer who will have the responsibility Contract Provisions. for and must be capable of effectively administering and promoting an active contractor program of EEO and who must be assigned adequate 3. A breach of any of the stipulations contained in these Required authority and responsibility to do so. Contract Provisions shall be sufficient grounds for termination of the contract. 3. Dissemination of Policy: All members of the contractor's staff who are authorized to hire, supervise, promote, and discharge 4. A breach of the following clauses of the Required Contract employees, or who recommend such action, or who are substantially Provisions may also be grounds for debarment as provided in 29 CFR involved in such action, will be made fully cognizant of, and will 5.12: implement, the contractor's EEO policy and contractual responsibilities to provide EEO in each grade and classification of employment. To Section I, paragraph 2; ensure that the above agreement will be met, the following actions will Section IV, paragraphs 1, 2, 3, 4, and 7; be taken as a minimum: Section V, paragraphs 1 and 2a through 2g. a. Periodic meetings of supervisory and personnel office 5. Disputes arising out of the labor standards provisions of Section IV employees will be conducted before the start of work and then not less (except paragraph 5) and Section V of these Required Contract often than once every six months, at which time the contractor's EEO Provisions shall not be subject to the general disputes clause of this policy and its implementation will be reviewed and explained. The Agreement. Such disputes shall be resolved in accordance with the meetings will be conducted by the EEO Officer. procedures of the U.S. Department of Labor (DOL) as set forth in 29 CFR 5, 6, and 7. Disputes within the meaning of this clause include b. All new supervisory or personnel office employees will be disputes between the contractor (or any of its subcontractors) and the given a thorough indoctrination by the EEO Officer, covering all major contracting agency, the DOL, or the contractor's employees or their aspects of the contractor's EEO obligations within thirty days following representatives. their reporting for duty with the contractor. 6. Selection of Labor: During the performance of this Agreement, c. All personnel who are engaged in direct recruitment for the the contractor shall not: project will be instructed by the EEO Officer in the contractor's procedures for locating and hiring minority group employees. a. discriminate against labor from any other State, possession, or territory of the United States (except for employment preference for d. Notices and posters setting forth the contractor's EEO policy Appalachian contracts, when applicable, as specified in Attachment A), will be placed in areas readily accessible to employees, applicants for or employment and potential employees. b employ convict labor for any purpose within the limits of the e. The contractor's EEO policy and the procedures to implement project unless it is labor performed by convicts who are on parole, such policy will be brought to the attention of employees by means of supervised release, or probation. meetings, employee handbooks, or other appropriate means. II. NONDISCRIMINATION 4. Recruitment: When advertising for employees, the contractor will include in all advertisements for employees the notation: "An Equal Page 1 of 8 REQUIRED BY 23 CFR 633.102 -- 11/1'6/2010 9 -2 -41 Opportunity Employer." All such advertisements will be placed in either directly or through a contractor's association acting as agent will publications having a large circulation among minority groups in the area include the procedures set forth below: from which the project work force would normally be derived. a. The contractor will use best efforts to develop, in cooperation a. The contractor will, unless precluded by a valid bargaining with the unions, joint training programs aimed toward qualifying more agreement, conduct systematic and direct recruitment through public minority group members and women for membership in the unions and and private employee referral sources likely to yield qualified minority increasing the skills of minority group employees and women so that group applicants. To meet this requirement, the contractor will identify they may qualify for higher paying employment. sources of potential minority group employees, and establish with such identified sources procedures whereby minority group applicants may be b. The contractor will use best efforts to incorporate an EEO referred to the contractor for employment consideration. clause into each union agreement to the end that such union will be contractually bound to refer applicants without regard to their race, color, b. In the event the contractor has a valid bargaining agreement religion, sex, national origin, age or disability. providing for exclusive hiring hall referrals, he is expected to observe the provisions of that agreement to the extent that the system permits the c. The contractor is to obtain information as to the referral contractor's compliance with EEO contract provisions. (The DOL has practices and policies of the labor union except that to the extent such held that where implementations of such agreements have the effect of information is within the exclusive possession of the labor union and discriminating against minorities or women, or obligates the contractor to such labor union refuses to furnish such information to the contractor, do the same, such implementation violates Executive Order 11246, as the contractor shall so certify to the SHA and shall set forth what efforts amended.) have been made to obtain such information. c. The contractor will encourage his present employees to refer d. In the event the union is unable to provide the contractor with a minority group applicants for employment. Information and procedures reasonable flow of minority and women referrals within the time limit set with regard to referring minority group applicants will be discussed with forth in the collective bargaining agreement, the contractor will, through employees. independent recruitment efforts, fill the employment vacancies without regard to race, color, religion, sex, national origin, age or disability; 5. Personnel Actions: Wages, working conditions, and employee making full efforts to obtain qualified and /or qualifiable minority group benefits shall be established and administered, and personnel actions of persons and women. (The DOL has held that it shall be no excuse that every type, including hiring, upgrading, promotion, transfer, demotion, the union with which the contractor has a collective bargaining layoff, and termination, shall be taken without regard to race, color, agreement providing for exclusive referral failed to refer minority religion, sex, national origin, age or disability. The following procedures employees.) In the event the union referral practice prevents the shall be followed: contractor from meeting the obligations pursuant to Executive Order 11246, as amended, and these special provisions, such contractor shall a. The contractor will conduct periodic inspections of project sites immediately notify the SHA. to insure that working conditions and employee facilities do not indicate discriminatory treatment of project site personnel. 8. Selection of Subcontractors, Procurement of Materials and Leasing of Equipment: The contractor shall not discriminate on the b. The contractor will periodically evaluate the spread of wages grounds of race, color, religion, sex, national origin, age or disability in paid within each classification to determine any evidence of the selection and retention of subcontractors, including procurement of discriminatory wage practices. materials and leases of equipment. c. The contractor will periodically review selected personnel a. The contractor shall notify all potential subcontractors and actions in depth to determine whether there is evidence of discrimi- suppliers of his /her EEO obligations under this Agreement. nation. Where evidence is found, the contractor will promptly take corrective action. If the review indicates that the discrimination may b. Disadvantaged business enterprises (DBE), as defined in 49 extend beyond the actions reviewed, such corrective action shall include CFR 23, shall have equal opportunity to compete for and perform all affected persons. subcontracts which the contractor enters into pursuant to this Agreement. The contractor will use his best efforts to solicit bids from d. The contractor will promptly investigate all complaints of alleged and to utilize DBE subcontractors or subcontractors with meaningful discrimination made to the contractor in connection with his obligations minority group and female representation among their employees. under this Agreement, will attempt to resolve such complaints, and will Contractors shall obtain lists of DBE construction firms from SHA take appropriate corrective action within a. reasonable time. If the personnel. investigation indicates that the discrimination may affect persons other than the complainant, such corrective action shall include such other c. The contractor will use his best efforts to ensure subcontractor persons. Upon completion of each investigation, the contractor will compliance with their EEO obligations. inform every complainant of all of his avenues of appeal. 9. Records and Reports: The contractor shall keep such records as 6. Training and Promotion: necessary to document compliance with the EEO requirements. Such records shall be retained for a period of three years following completion a. The contractor will assist in locating, qualifying, and increasing of the contract work and shall be available at reasonable times and the skills of minority group and women employees, and applicants for places for inspection by authorized representatives of the SHA and the employment. FHWA. b. Consistent with the contractor's work force requirements and a. The records kept by the contractor shall document the as permissible under Federal and State regulations, the contractor shall following: make full use of training programs, i.e., apprenticeship, and on- the -job training programs for the geographical area of contract performance. (1) The number of minority and non - minority group members Where feasible, 25 percent of apprentices or trainees in each occupation and women employed in each work classification on the project; shall be in their first year of apprenticeship or training. In the event a special provision for training is provided under this Agreement, this (2) The progress and efforts being made in cooperation with subparagraph will be superseded as indicated in the special provision. unions, when applicable, to increase employment opportunities for minorities and women; c. The contractor will advise employees and applicants for employment of available training programs and entrance requirements (3) The progress and efforts being made in locating, hiring, for each. training, qualifying, and upgrading minority and female employees; and d. The contractor will periodically review the training and (4) The progress and efforts being made in securing the promotion potential of minority group and women employees and will services of DBE subcontractors or subcontractors with meaningful encourage eligible employees to apply for such training and promotion. minority and female representation among their employees. 7. Unions: If the contractor relies in whole or in part upon unions as a b. The contractors will submit an annual report to the SHA each source of employees, the contractor will use his /her best efforts to obtain July for the duration of the project, indicating the number of minority, the cooperation of such unions to increase opportunities for minority women, and non - minority group employees currently engaged in each groups and women within the unions, and to effect referrals by such work classification required by the contract work. This information is to unions of minority and female employees. Actions by the contractor 1 ttg;3 2H1d 8 REQUIRED BY 23 CFR 633.102 -- 9-2-42 be reported on Form FHWA -1391. If on -the job training is being required c. All rulings and interpretations of the Davis -Bacon Act and by special provision, the contractor will be required to collect and report related acts contained in 29 CFR 1, 3, and 5 are herein incorporated by training data. reference in this Agreement. III. NONSEGREGATED FACILITIES 2. Classification: (Applicable to all Federal -aid construction contracts and to all related a. The SHA contracting officer shall require that any class of subcontracts of $10,000 or more.) laborers or mechanics employed under the contract, which is not listed in the wage determination, shall be classified in conformance with the a. By submission of this bid, the execution of this Agreement or wage determination. subcontract, or the consummation of this material supply agreement or purchase order, as appropriate, the bidder, Federal -aid construction b. The contracting officer shall approve an additional contractor, subcontractor, material supplier, or vendor, as appropriate, classification, wage rate and fringe benefits only when the following certifies that the firm does not maintain or provide for its employees any criteria have been met: segregated facilities at any of its establishments, and that the firm does not permit its employees to perform their services at any location, under (1) the work to be performed by the additional classification its control, where segregated facilities are maintained. The firm agrees requested is not performed by a classification in the wage determination; that a breach of this certification is a violation of the EEO provisions of this Agreement. The firm further certifies that no employee will be denied (2) the additional classification is utilized in the area by the access to adequate facilities on the basis of sex or disability. construction industry; b. As used in this certification, the term "segregated facilities" (3) the proposed wage rate, including any bona fide fringe means any waiting rooms, work areas, restrooms and washrooms, benefits, bears a reasonable relationship to the wage rates contained in restaurants and other eating areas, timeclocks, locker rooms, and other the wage determination; and storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for (4) with respect to helpers, when such a classification employees which are segregated by explicit directive, or are, in fact, prevails in the area in which the work is performed. segregated on the basis of race, color, religion, national origin, age or disability, because of habit, local custom, or otherwise. The only c. If the contractor or subcontractors, as appropriate, the laborers exception will be for the disabled when the demands for accessibility and mechanics (if known) to be employed in the additional classification override (e.g. disabled parking). or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe c. The contractor agrees that it has obtained or will obtain identical benefits where appropriate), a report of the action taken shall be sent by certification from proposed subcontractors or material suppliers prior to the contracting officer to the DOL, Administrator of the Wage and Hour award of subcontracts or consummation of material supply agreements Division, Employment Standards Administration, Washington, D.C. of $10,000 or more and that it will retain such certifications in its files. 20210. The Wage and Hour Administrator, or an authorized representa- tive, will approve, modify, or disapprove every additional classification IV. PAYMENT OF PREDETERMINED MINIMUM WAGE action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30 -day period that additional (Applicable to all Federal -aid construction contracts exceeding time is necessary. $2,000 and to all related subcontracts, except for projects located on roadways classified as local roads or rural minor collectors, which are d. In the event the contractor or subcontractors, as appropriate, exempt.) the laborers or mechanics to be employed in the additional classification or their representatives, and the contracting officer do not agree on the 1. General: proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer a. All mechanics and laborers employed or working upon the site the questions, including the views of all interested parties and the of the work will be paid unconditionally and not less often than once a recommendation of the contracting officer, to the Wage and Hour week and without subsequent deduction or rebate on any account Administrator for determination. Said Administrator, or an authorized [except such payroll deductions as are permitted by regulations (29 CFR representative, will issue a determination within 30 days of receipt and 3) issued by the Secretary of Labor under the Copeland Act (40 U.S.C. so advise the contracting officer or will notify the contracting officer 276c)] the full amounts of wages and bona fide fringe benefits (or cash within the 30 -day period that additional time is necessary equivalents thereof) due at time of payment. The payment shall be computed at wage rates not less than those contained in the wage e. The wage rate (including fringe benefits where appropriate) determination of the Secretary of Labor (hereinafter "the wage determi- determined pursuant to paragraph 2c or 2d of this Section IV shall be nation ") which is attached hereto and made a part hereof, regardless of paid to all workers performing work in the additional classification from any contractual relationship which may be alleged to exist between the the first day on which work is performed in the classification. contractor or its subcontractors and such laborers and mechanics. The wage determination (including any additional classifications and wage 3. Payment of Fringe Benefits: rates conformed under paragraph 2 of this Section IV and the DOL poster (WH -1321) or Form FHWA -1495) shall be posted at all times by a. Whenever the minimum wage rate prescribed in the contract the contractor and its subcontractors at the site of the work in a for a class of laborers or mechanics includes a fringe benefit which is not prominent and accessible place where it can be easily seen by the expressed as an hourly rate, the contractor or subcontractors, as workers. For the purpose of this Section, contributions made or costs appropriate, shall either pay the benefit as stated in the wage reasonably anticipated for bona fide fringe benefits under Section 1(b)(2) determination or shall pay another bona fide fringe benefit or an hourly of the Davis -Bacon Act (40 U.S.C. 276a) on behalf of laborers or case equivalent thereof. mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of Section IV, paragraph 3b, hereof. Also, for b. If the contractor or subcontractor, as appropriate, does not the purpose of this Section, regular contributions made or costs incurred make payments to a trustee or other third person, he /she may consider for more than a weekly period (but not less often than quarterly) under as a part of the wages of any laborer or mechanic the amount of any plans, funds, or programs, which cover the particular weekly period, are costs reasonably anticipated in providing bona fide fringe benefits under deemed to be constructively made or incurred during such weekly a plan or program, provided, that the Secretary of Labor has found, upon period. Such laborers and mechanics shall be paid the appropriate wage the written request of the contractor, that the applicable standards of the rate and fringe benefits on the wage determination for the classification Davis -Bacon Act have been met. The Secretary of Labor may require of work actually performed, without regard to skill, except as provided in the contractor to set aside in a separate account assets for the meeting paragraphs 4 and 5 of this Section IV. of obligations under the plan or program. b. Laborers or mechanics performing work in more than one 4. Apprentices and Trainees (Programs of the U.S. DOL) and classification may be compensated at the rate specified for each Helpers: classification for the time actually worked therein, provided, that the employer's payroll records accurately set forth the time spent in each a. Apprentices: classification in which work is performed. (1) Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed IN190_61d 8 REQUIRED BY 23 CFR 633.102 -- 9-2-43 pursuant to and individually registered in a bona fide apprenticeship program registered with the DOL, Employment and Training c. Helpers: Administration, Bureau of Apprenticeship and Training, or with a State apprenticeship agency recognized by the Bureau, or if a person is Helpers will be permitted to work on a project if the helper employed in his /her first 90 days of probationary employment as an classification is specified and defined on the applicable wage determina- apprentice in such an apprenticeship program, who is not individually tion or is approved pursuant to the conformance procedure set forth in registered in the program, but who has been certified by the Bureau of Section IV.2. Any worker listed on a payroll at a helper wage rate, who is Apprenticeship and Training or a State apprenticeship agency (where not a helper under a approved definition, shall be paid not less than the appropriate) to be eligible for probationary employment as an applicable wage rate on the wage determination for the classification of apprentice. work actually performed. (2) The allowable ratio of apprentices to journeyman -level 5. Apprentices and Trainees (Programs of the U.S. DOT): employees on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force Apprentices and trainees working under apprenticeship and skill under the registered program. Any employee listed on a payroll at an training programs which have been certified by the Secretary of apprentice wage rate, who is not registered or otherwise employed as Transportation as promoting EEO in connection with Federal -aid stated above, shall be paid not less than the applicable wage rate listed highway construction programs are not subject to the requirements of in the wage determination for the classification of work actually paragraph 4 of this Section IV. The straight time hourly wage rates for performed. In addition, any apprentice performing work on the job site in apprentices and trainees under such programs will be established by the excess of the ratio permitted under the registered program shall be paid particular programs. The ratio of apprentices and trainees to journeymen not less than the applicable wage rate on the wage determination for the shall not be greater than permitted by the terms of the particular work actually performed. Where a contractor or subcontractor is program. performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in 6. Withholding: percentages of the journeyman -level hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. The SHA shall upon its own action or upon written request of an authorized representative of the DOL withhold, or cause to be withheld, (3) Every apprentice must be paid at not less than the rate from the contractor or subcontractor under this Agreement or any other specified in the registered program for the apprentice's level of progress, Federal contract with the same prime contractor, or any other Federally - expressed as a percentage of the journeyman -level hourly rate specified assisted contract subject to Davis -Bacon prevailing wage requirements in the applicable wage determination. Apprentices shall be paid fringe which is held by the same prime contractor, as much of the accrued benefits in accordance with the provisions of the apprenticeship payments or advances as may be considered necessary to pay laborers program. If the apprenticeship program does not specify fringe benefits, and mechanics, including apprentices, trainees, and helpers, employed apprentices must be paid the full amount of fringe benefits listed on the by the contractor or any subcontractor the full amount of wages required wage determination for the applicable classification. If the Administrator by the contract. In the event of failure to pay any laborer or mechanic, for the Wage and Hour Division determines that a different practice including any apprentice, trainee, or helper, employed or working on the prevails for the applicable apprentice classification, fringes shall be paid site of the work, all or part of the wages required by the contract, the in accordance with that determination. SHA contracting officer may, after written notice to the contractor, take such action as may be necessary to cause the suspension of any further (4) In the event the Bureau of Apprenticeship and Training, payment, advance, or guarantee of funds until such violations have or a State apprenticeship agency recognized by the Bureau, withdraws ceased. approval of an apprenticeship program, the contractor or subcontractor will no longer be permitted to utilize apprentices at less than the 7. Overtime Requirements: applicable predetermined rate for the comparable work performed by regular employees until an acceptable program is approved. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers, b. Trainees: mechanics, watchmen, or guards (including apprentices, trainees, and helpers described in paragraphs 4 and 5 above) shall require or permit (1) Except as provided in 29 CFR 5.16, trainees will not be any laborer, mechanic, watchman, or guard in any workweek in which permitted to work at less than the predetermined rate for the work he /she is employed on such work, to work in excess of 40 hours in such performed unless they are employed pursuant to and individually workweek unless such laborer, mechanic, watchman, or guard receives registered in a program which has received prior approval, evidenced by compensation at a rate not less than one - and - one -half times his /her formal certification by the DOL, Employment and Training basic rate of pay for all hours worked in excess of 40 hours in such Administration. workweek. (2) The ratio of trainees to journeyman -level employees on 8. Violation: the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Any employee listed on Liability for Unpaid Wages; Liquidated Damages: In the event of any the payroll at a trainee rate who is not registered and participating in a violation of the clause set forth in paragraph 7 above, the contractor and training plan approved by the Employment and Training Administration any subcontractor responsible thereof shall be liable to the affected shall be paid not less than the applicable wage rate on the wage employee for his /her unpaid wages. In addition, such contractor and determination for the classification of work actually performed. In subcontractor shall be liable to the United States (in the case of work addition, any trainee performing work on the job site in excess of the done under contract for the District of Columbia or a territory, to such ratio permitted under the registered program shall be paid not less than District or to such territory) for liquidated damages. Such liquidated the applicable wage rate on the wage determination for the work actually damages shall be computed with respect to each individual laborer, performed. mechanic, watchman, or guard employed in violation of the clause set forth in paragraph 7, in the sum of $10 for each calendar day on which (3) Every trainee must be paid at not less than the rate such employee was required or permitted to work in excess of the specified in the approved program for his /her level of progress, standard work week of 40 hours without payment of the overtime wages expressed as a percentage of the journeyman -level hourly rate specified required by the clause set forth in paragraph 7. in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the 9. Withholding for Unpaid Wages and Liquidated Damages: trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless The SHA shall upon its own action or upon written request of any the Administrator of the Wage and Hour Division determines that there is authorized representative of the DOL withhold, or cause to be withheld, an apprenticeship program associated with the corresponding from any monies payable on account of work performed by the journeyman -level wage rate on the wage determination which provides contractor or subcontractor under any such contract or any other for less than full fringe benefits for apprentices, in which case such Federal contract with the same prime contractor, or any other Federally - trainees shall receive the same fringe benefits as apprentices. assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums (4) In the event the Employment and Training Administration as may be determined to be necessary to satisfy any liabilities of such withdraws approval of a training program, the contractor or contractor or subcontractor for unpaid wages and liquidated damages as subcontractor will no longer be permitted to utilize trainees at less than provided in the clause set forth in paragraph 8 above. the applicable predetermined rate for the work performed until an acceptable program is approved. IN190_41d 8 REQUIRED BY 23 CFR 633.102 -- 9-2-44 V. STATEMENTS AND PAYROLLS f. The falsification of any of the above certifications may subject the contractor to civil or criminal prosecution under 18 U.S.C. 1001 and (Applicable to all Federal -aid construction contracts exceeding $2,000 31 U.S.C. 231. and to all related subcontracts, except for projects located on roadways classified as local roads or rural collectors, which are exempt.) g. The contractor or subcontractor shall make the records required under paragraph 2b of this Section V available for inspection, 1. Compliance with Copeland Regulations (29 CFR 3): copying, or transcription by authorized representatives of the SHA, the FHWA, or the DOL, and shall permit such representatives to interview The contractor shall comply with the Copeland Regulations of the employees during working hours on the job. If the contractor or Secretary of Labor which are herein incorporated by reference. subcontractor fails to submit the required records or to make them available, the SHA, the FHWA, the DOL, or all may, after written notice 2. Payrolls and Payroll Records: to the contractor, sponsor, applicant, or owner, take such actions as may be necessary to cause the suspension of any further payment, advance, a. Payrolls and basic records relating thereto shall be or guarantee of funds. Furthermore, failure to submit the required maintained by the contractor and each subcontractor during the course records upon request or to make such records available may be grounds of the work and preserved for a period of 3 years from the date of for debarment action pursuant to 29 CFR 5.12. completion of the contract for all laborers, mechanics, apprentices, trainees, watchmen, helpers, and guards working at the site of the work. VI. RECORD OF MATERIALS, SUPPLIES, AND LABOR b. The payroll records shall contain the name, social security 1. On all Federal -aid contracts on the National Highway System, number, and address of each such employee; his or her correct except those which provide solely for the installation of protective classification; hourly rates of wages paid (including rates of contributions devices at railroad grade crossings, those which are constructed on a or costs anticipated for bona fide fringe benefits or cash equivalent force account or direct labor basis, highway beautification contracts, and thereof the types described in Section 1(b)(2)(B) of the Davis Bacon contracts for which the total final construction cost for roadway and Act); daily and weekly number of hours worked; deductions made; and bridge is less than $1,000,000 (23 CFR 635) the contractor shall: actual wages paid. In addition, for Appalachian contracts, the payroll records shall contain a notation indicating whether the employee does, a. Become familiar with the list of specific materials and or does not, normally reside in the labor area as defined in Attachment supplies contained in Form FHWA -47, "Statement of Materials and A, paragraph 1. Whenever the Secretary of Labor, pursuant to Section Labor Used by Contractor of Highway Construction Involving Federal IV, paragraph 3b, has found that the wages of any laborer or mechanic Funds," prior to the commencement of work under this Agreement. include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in Section 1(b)(2)(B) of the b. Maintain a record of the total cost of all materials and Davis Bacon Act, the contractor and each subcontractor shall maintain supplies purchased for and incorporated in the work, and also of the records which show that the commitment to provide such benefits is quantities of those specific materials and supplies listed on Form FHWA - enforceable, that the plan or program is financially responsible, that the 47, and in the units shown on Form FHWA -47. plan or program has been communicated in writing to the laborers or mechanics affected, and show the cost anticipated or the actual cost c. Furnish, upon the completion of the contract, to the SHA incurred in providing benefits. Contractors or subcontractors employing resident engineer on Form FHWA -47 together with the data required in apprentices or trainees under approved programs shall maintain written paragraph 1b relative to materials and supplies, a final labor summary of evidence of the registration of apprentices and trainees, and ratios and all contract work indicating the total hours worked and the total amount wage rates prescribed in the applicable programs. earned. c. Each contractor and subcontractor shall furnish, each week in 2. At the prime contractor's option, either a single report covering all which any contract work is performed, to the SHA resident engineer a contract work or separate reports for the contractor and for each payroll of wages paid each of its employees (including apprentices, subcontract shall be submitted. trainees, and helpers, described in Section IV, paragraphs 4 and 5, and watchmen and guards engaged on work during the preceding weekly VII. SUBLETTING OR ASSIGNING THE CONTRACT payroll period). The payroll submitted shall set out accurately and completely all of the information required to be maintained under 1. The contractor shall perform with its own organization contract paragraph 2b of this Section V. This information may be submitted in work amounting to not less than 30 percent (or a greater percentage if any form desired. Optional Form WH -347 is available for this purpose specified elsewhere in the contract) of the total original contract price, and may be purchased from the Superintendent of Documents (Federal excluding any specialty items designated by the State. Specialty items stock number 029- 005 - 0014 -1), U.S. Government Printing Office, may be performed by subcontract and the amount of any such specialty Washington, D.C. 20402. The prime contractor is responsible for the items performed may be deducted from the total original contract price submission of copies of payrolls by all subcontractors. before computing the amount of work required to be performed by the contractor's own organization (23 CFR 635). d. Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his /her a. "Its own organization" shall be construed to include only agent who pays or supervises the payment of the persons employed workers employed and paid directly by the prime contractor and under the contract and shall certify the following: equipment owned or rented by the prime contractor, with or without operators. Such term does not include employees or equipment of a (1) that the payroll for the payroll period contains the subcontractor, assignee, or agent of the prime contractor. information required to be maintained under paragraph 2b of this Section V and that such information is correct and complete; b. "Specialty Items" shall be construed to be limited to work that requires highly specialized knowledge, abilities, or equipment not (2) that such laborer or mechanic (including each helper, ordinarily available in the type of contracting organizations qualified and apprentice, and trainee) employed on the contract during the payroll expected to bid on the contract as a whole and in general are to be period has been paid the full weekly wages earned, without rebate, limited to minor components of the overall contract. either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than 2. The contract amount upon which the requirements set forth in permissible deductions as set forth in the Regulations, 29 CFR 3; paragraph 1 of Section VII is computed includes the cost of material and manufactured products which are to be purchased or produced by the (3) that each laborer or mechanic has been paid not less that contractor under the contract provisions. the applicable wage rate and fringe benefits or cash equivalent for the classification of worked performed, as specified in the applicable wage 3. The contractor shall furnish (a) a competent superintendent or determination incorporated into the contract. supervisor who is employed by the firm, has full authority to direct performance of the work in accordance with the contract requirements, and is in charge of all construction operations (regardless of who e. The weekly submission of a properly executed certification set performs the work) and (b) such other of its own organizational forth on the reverse side of Optional Form WH -347 shall satisfy the resources (supervision, management, and engineering services) as the requirement for submission of the "Statement of Compliance" required SHA contracting officer determines is necessary to assure the by paragraph 2d of this Section V. performance of the contract. 4. No portion of the contract shall be sublet, assigned or otherwise 11P,i3OIt261d 8 REQUIRED BY 23 CFR 633.102 -- 9-2-45 disposed of except with the written consent of the SHA contracting officer, or authorized representative, and such consent when given shall By submission of this bid or the execution of this Agreement, or not be construed to relieve the contractor of any responsibility for the subcontract, as appropriate, the bidder, Federal -aid construction fulfillment of the contract. Written consent will be given only after the contractor, or subcontractor, as appropriate, will be deemed to have SHA has assured that each subcontract is evidenced in writing and that stipulated as follows: it contains all pertinent provisions and requirements of the prime contract. 1. That any facility that is or will be utilized in the performance of this Agreement, unless such contract is exempt under the Clean Air Act, as VIII. SAFETY: ACCIDENT PREVENTION amended (42 U.S.C. 1857 et sec., as amended by Pub.L. 91 -604), and under the Federal Water Pollution Control Act, as amended (33 U.S.C. 1. In the performance of this Agreement the contractor shall comply 1251 et sec., as amended by Pub.L. 92 -500), Executive Order 11738, with all applicable Federal, State, and local laws governing safety, and regulations in implementation thereof (40 CFR 15) is not listed, on health, and sanitation (23 CFR 635). The contractor shall provide all the date of contract award, on the U.S. Environmental Protection safeguards, safety devices and protective equipment and take any other Agency (EPA) List of Violating Facilities pursuant to 40 CFR 15.20. needed actions as it determines, or as the SHA contracting officer may determine, to be reasonably necessary to protect the life and health of 2. That the firm agrees to comply and remain in compliance with all the employees on the job and the safety of the public and to protect property requirements of Section 114 of the Clean Air Act and Section 308 of the in connection with the performance of the work covered by the contract. Federal Water Pollution Control Act and all regulations and guidelines listed thereunder. 2. It is a condition of this Agreement, and shall be made a condition of each subcontract, which the contractor enters into pursuant to this 3. That the firm shall promptly notify the SHA of the receipt of any Agreement, that the contractor and any subcontractor shall not permit communication from the Director, Office of Federal Activities, EPA, any employee, in performance of the contract, to work in surroundings or indicating that a facility that is or will be utilized for the contract is under under conditions which are unsanitary, hazardous or dangerous to consideration to be listed on the EPA List of Violating Facilities. his /her health or safety, as determined under construction safety and health standards (29 CFR 1926) promulgated by the Secretary of Labor, 4. That the firm agrees to include or cause to be included the in accordance with Section 107 of the Contract Work Hours and Safety requirements of paragraph 1 through 4 of this Section X in every Standards Act (40 U.S.C. 333). nonexempt subcontract, and further agrees to take such action as the government may direct as a means of enforcing such requirements. 3. Pursuant to 29 CFR 1926.3, it is a condition of this Agreement that the Secretary of Labor or authorized representative thereof, shall have XI. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, right of entry to any site of contract performance to inspect or investigate INELIGIBILITY AND VOLUNTARY EXCLUSION the matter of compliance with the construction safety and health standards and to carry out the duties of the Secretary under Section 107 1. Instructions for Certification - Primary Covered Transactions: of the Contract Work Hours and Safety Standards Act (40 U.S.C. 333). (Applicable to all Federal -aid contracts - 49 CFR 29) IX. FALSE STATEMENTS CONCERNING HIGHWAY PROJECTS a. By signing and submitting this proposal, the prospective In order to assure high quality and durable construction in conformity primary participant is providing the certification set out below. with approved plans and specifications and a high degree of reliability on statements and representations made by engineers, contractors, suppli- b. The inability of a person to provide the certification set out ers, and workers on Federal -aid highway projects, it is essential that all below will not necessarily result in denial of participation in this covered persons concerned with the project perform their functions as carefully, transaction. The prospective participant shall submit an explanation of thoroughly, and honestly as possible. Willful falsification, distortion, or why it cannot provide the certification set out below. The certification or misrepresentation with respect to any facts related to the project is a explanation will be considered in connection with the department or violation of Federal law. To prevent any misunderstanding regarding the agency's determination whether to enter into this transaction. However, seriousness of these and similar acts, the following notice shall be failure of the prospective primary participant to furnish a certification or posted on each Federal -aid highway project (23 CFR 635) in one or an explanation shall disqualify such a person from participation in this more places where it is readily available to all persons concerned with transaction. the project: c. The certification in this clause is a material representation of NOTICE TO ALL PERSONNEL ENGAGED ON FEDERAL -AID fact upon which reliance was placed when the department or agency HIGHWAY PROJECTS determined to enter into this transaction. If it is later determined that the prospective primary participant knowingly rendered an erroneous 18 U.S.C. 1020 reads as follows: certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction "Whoever, being an officer, agent, or employee of the United States, for cause of default. or of any State or Territory, or whoever, whether a person, association, firm, or corporation, knowingly makes any false statement, false d. The prospective primary participant shall provide immediate representation, or false report as to the character, quality, quantity, or written notice to the department or agency to whom this proposal is cost of the material used or to be used, or the quantity or quality of the submitted if any time the prospective primary participant learns that its work performed or to be performed, or the cost thereof in connection certification was erroneous when submitted or has become erroneous with the submission of plans, maps, specifications, contracts, or costs of by reason of changed circumstances. construction on any highway or related project submitted for approval to the Secretary of Transportation; or e. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," Whoever knowingly makes any false statement, false representation, "primary covered transaction," "principal," "proposal," and "voluntarily false report or false claim with respect to the character, quality, quantity, excluded," as used in this clause, have the meanings set out in the or cost of any work performed or to be performed, or materials furnished Definitions and Coverage sections of rules implementing Executive or to be furnished, in connection with the construction of any highway or Order 12549. You may contact the department or agency to which this related project approved by the Secretary of Transportation; or proposal is submitted for assistance in obtaining a copy of those regulations. Whoever knowingly makes any false statement or false representation as to material fact in any statement, certificate, or report f. The prospective primary participant agrees by submitting this submitted pursuant to provisions of the Federal -aid Roads Act approved proposal that, should the proposed covered transaction be entered into, July 1, 1916, (39 Stat. 355), as amended and supplemented; it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily Shall be fined not more that $10,000 or imprisoned not more than 5 excluded from participation in this covered transaction, unless years or both." authorized by the department or agency entering into this transaction. X. IMPLEMENTATION OF CLEAN AIR ACT AND FEDERAL g. The prospective primary participant further agrees by WATER POLLUTION CONTROL ACT submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - (Applicable to all Federal -aid construction contracts and to all related Lower Tier Covered Transaction," provided by the department or agency subcontracts of $100,000 or more.) lfPA9;�261d 8 REQUIRED BY 23 CFR 633.102 -- 9-2-46 entering into this covered transaction, without modification, in all lower c. The prospective lower tier participant shall provide immediate tier covered transactions and in all solicitations for lower tier covered written notice to the person to which this proposal is submitted if at any transactions. time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered d. The terms 'covered transaction," "debarred," "suspended," transaction that is not debarred, suspended, ineligible, or voluntarily "ineligible," "primary covered transaction," "participant," "person," excluded from the covered transaction, unless it knows that the "principal," "proposal," and "voluntarily excluded," as used in this clause, certification is erroneous. A participant may decide the method and have the meanings set out in the Definitions and Coverage sections of frequency by which it determines the eligibility of its principals. Each rules implementing Executive Order 12549. You may contact the person participant may, but is not required to, check the non - procurement to which this proposal is submitted for assistance in obtaining a copy of portion of the "Lists of Parties Excluded From Federal Procurement or those regulations. Non - procurement Programs" (Non - procurement List) which is compiled by the General Services Administration. e. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, I. Nothing contained in the foregoing shall be construed to require it shall not knowingly enter into any lower tier covered transaction with a establishment of a system of records in order to render in good faith the person who is debarred, suspended, declared ineligible, or voluntarily certification required by this clause. The knowledge and information of excluded from participation in this covered transaction, unless participant is not required to exceed that which is normally possessed by authorized by the department or agency with which this transaction a prudent person in the ordinary course of business dealings. originated. j. Except for transactions authorized under paragraph f of these f. The prospective lower tier participant further agrees by instructions, if a participant in a covered transaction knowingly enters submitting this proposal that it will include this clause titled "Certification into a lower tier covered transaction with a person who is suspended, Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - debarred, ineligible, or voluntarily excluded from participation in this Lower Tier Covered Transaction," without modification, in all lower tier transaction, in addition to other remedies available to the Federal covered transactions and in all solicitations for lower tier covered Government, the department or agency may terminate this transaction transactions. for cause or default. g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the Certification Regarding Debarment, Suspension, Ineligibility and certification is erroneous. A participant may decide the method and Voluntary Exclusion -- Primary Covered Transactions frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the Non - procurement List. 1. The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: h. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good a. Are not presently debarred, suspended, proposed for faith the certification required by this clause. The knowledge and debarment, declared ineligible, or voluntarily excluded from covered information of participant is not required to exceed that which is normally transactions by any Federal department or agency; possessed by a prudent person in the ordinary course of business dealings. b. Have not within a 3 -year period preceding this proposal been convicted of or had a civil judgment rendered against them for I. Except for transactions authorized under paragraph a of these commission of fraud or a criminal offense in connection with obtaining, instructions, if a participant in a covered transaction knowingly enters attempting to obtain, or performing a public (Federal, State or local) into a lower tier covered transaction with a person who is suspended, transaction or contract under a public transaction; violation of Federal or debarred, ineligible, or voluntarily excluded from participation in this State antitrust statutes or commission of embezzlement, theft, forgery, transaction, in addition to other remedies available to the Federal bribery, falsification or destruction of records, making false statements, Government, the department or agency with which this transaction or receiving stolen property; originated may pursue available remedies, including suspension and /or debarment. c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph 1b of this certification; and Certification Regarding Debarment, Suspension, Ineligibility and d. Have not within a 3 -year period preceding this Voluntary Exclusion - -Lower Tier Covered Transactions: application /proposal had one or more public transactions (Federal, State or local) terminated for cause or default. 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, 2. Where the prospective primary participant is unable to certify to suspended, proposed for debarment, declared ineligible, or voluntarily any of the statements in this certification, such prospective participant excluded from participation in this transaction by any Federal shall attach an explanation to this proposal. department or agency. 2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. 2. Instructions for Certification - Lower Tier Covered Transac- tions: (Applicable to all subcontracts, purchase orders and other lower tier XII. CERTIFICATION REGARDING USE OF CONTRACT FUNDS OR transactions of $25,000 or more - 49 CFR 29) LOBBYING a. By signing and submitting this proposal, the prospective lower (Applicable to all Federal -aid construction contracts and to all related tier is providing the certification set out below. subcontracts which exceed $100,000 - 49 CFR 20) b. The certification in this clause is a material representation of 1. The prospective participant certifies, by signing and submitting this fact upon which reliance was placed when this transaction was entered bid or proposal, to the best of his or her knowledge and belief, that: into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other a. No Federal appropriated funds have been paid or will be paid, remedies available to the Federal Government, the department, or by or on behalf of the undersigned, to any person for influencing or agency with which this transaction originated may pursue available attempting to influence an officer or employee of any Federal agency, a remedies, including suspension and /or debarment. Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of lRage -91d 8 REQUIRED BY 23 CFR 633.102 -- 9-2-47 any Federal contract, the making of any Federal grant, the making of 2 This certification is a material representation of fact upon which any Federal loan, the entering into of any cooperative agreement, and reliance was placed when this transaction was made or entered into. the extension, continuation, renewal, amendment, or modification of any 2. Submission of this certification is a prerequisite for making or entering Federal contract, grant, loan, or cooperative agreement. into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less b. If any funds other than Federal appropriated funds have been than $10,000 and not more than $100,000 for each such failure. paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of 3. The prospective participant also agrees by submitting his or her bid or Congress, an officer or employee of Congress, or an employee of a proposal that he or she shall require that the language of this Member of Congress in connection with this Federal contract, grant, certification be included in all lower tier subcontracts, which exceed loan, or cooperative agreement, the undersigned shall complete and $100,000 and that all such recipients shall certify and disclose submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordingly accordance with its instructions. l ttg;3 281d 8 REQUIRED BY 23 CFR 633.102 -- 9-2-48 37. EXHIBIT J — FEDERAL REQUIREMENTS Federal laws and regulations that may be applicable to the Work include: A. Uniform Administrative Requirements for Agreements and Cooperative Agreements to State and Local Governments (Common Rule) The "Uniform Administrative Requirements for Agreements and Cooperative Agreements to State and Local Governments (Common Rule), at 49 Code of Federal Regulations, Part 18, except to the extent that other applicable federal requirements (including the provisions of 23 CFR Parts 172 or 633 or 635) are more specific than provisions of Part 18 and therefore supersede such Part 18 provisions. The requirements of 49 CFR 18 include, without limitation: i. the Local Agency /Contractor shall follow applicable procurement procedures, as required by section 18.36(d); ii. the Local Agency /Contractor shall request and obtain prior CDOT approval of changes to any subcontracts in the manner, and to the extent required by, applicable provisions of section 18.30; iii. the Local Agency /Contractor shall comply with section 18.37 concerning any sub - Agreements; iv. to expedite any CDOT approval, the Local Agency /Contractor's attorney, or other authorized representative, shall also submit a letter to CDOT certifying Local Agency /Contractor compliance with section 18.30 change order procedures, and with 18.36(d) procurement procedures, and with 18.37 sub - Agreement procedures, as applicable; v. the Local Agency /Contractor shall incorporate the specific contract provisions described in 18.36(1) (which are also deemed incorporated herein) into any subcontract(s) for such services as terms and conditions of those subcontracts. B. Executive Order 11246 Executive Order 11246 of September 24, 1965 entitled "Equal Employment Opportunity," as amended by Executive Order 11375 of October 13, 1967 and as supplemented in Department of Labor regulations (41 CFR Chapter 60) (All construction contracts awarded in excess of $10,000 by the Local Agencys and their contractors or sub -the Local Agencys). C. Copeland "Anti- Kickback" Act The Copeland "Anti- Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR Part 3) (All contracts and sub - Agreements for construction or repair). D. Davis -Bacon Act The Davis -Bacon Act (40 U.S.C. 276a to a -7) as supplemented by Department of Labor regulations (29 CFR Part 5) (Construction contracts in excess of $2,000 awarded by the Local Agencys and sub -the Local Agencys when required by Federal Agreement program legislation. This act requires that all laborers and mechanics employed by contractors or sub - contractors to work on construction projects financed by federal assistance must be paid wages not less than those established for the locality of the project by the Secretary of Labor). E. Contract Work Hours and Safety Standards Act Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327- 330) as supplemented by Department of Labor regulations (29 CFR Part 5). (Construction contracts awarded by the Local Agencys and sub -the Local Agencys in excess of $2,000, and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers). F. Clear Air Act Standards, orders, or requirements issued under section 306 of the Clear Air Act (42 U.S.C. 1857(h), section 508 of the Clean Water Act (33 U.S.C. 1368). Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15) (contracts, subcontracts, and sub - Agreements of amounts in excess of $100,000). G. Energy Policy and Conservation Act Pa gqe 1 of 3 11/ 16/20I0 9 -2 -49 Mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94 -163). H. OMB Circulars Office of Management and Budget Circulars A -87, A -21 or A -122, and A -102 or A -110, whichever is applicable. I. Hatch Act The Hatch Act (5 USC 1501 -1508) and Public Law 95 -454 Section 4728. These statutes state that federal funds cannot be used for partisan political purposes of any kind by any person or organization involved in the administration of federally- assisted programs. J. Nondiscrimination 42 USC 6101 et seg. 42 USC 2000d, 29 USC 794, and implementing regulation, 45 C.F.R. Part 80 et. seq. These acts require that no person shall, on the grounds of race, color, national origin, age, or handicap, be excluded from participation in or be subjected to discrimination in any program or activity funded, in whole or part, by federal funds. K. ADA The Americans with Disabilities Act (Public Law 101 -336; 42 USC 12101, 12102, 12111 - 12117, 12131- 12134, 12141- 12150, 12161- 12165, 12181- 12189, 1 2201 -1 221 3 47 USC 225 and 47 USC 611. L. Uniform Relocation Assistance and Real Property Acquisition Policies Act The Uniform Relocation Assistance and Real Property Acquisition Policies Act, as amended (Public Law 91 -646, as amended and Public Law 100 -17, 101 Stat. 246 -256). (If the contractor is acquiring real property and displacing households or businesses in the performance of the Agreement). M. Drug -Free Workplace Act The Drug -Free Workplace Act (Public Law 100 -690 Title V, subtitle D, 41 USC 701 et seg. N. Age Discrimination Act of 1975 The Age Discrimination Act of 1975, 42 U.S.C. Sections 6101 et. seg. and its implementing regulation, 45 C.F.R. Part 91; Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794, as amended, and implementing regulation 45 C.F.R. Part 84. O. 23 C.F.R. Part 172 23 C.F.R. Part 172, concerning "Administration of Engineering and Design Related Contracts ". P. 23 C.F.R Part 633 23 C.F.R Part 633, concerning "Required Contract Provisions for Federal -Aid Construction Contracts ". 0.23 C.F.R. Part 635 23 C.F.R. Part 635, concerning "Construction and Maintenance Provisions ". R. Title VI of the Civil Rights Act of 1964 and 162(a) of the Federal Aid Highway Act of 1973 Title VI of the Civil Rights Act of 1964 and 162(a) of the Federal Aid Highway Act of 1973. The requirements for which are shown in the Nondiscrimination Provisions, which are attached hereto and made a part hereof. S. Nondiscrimination Provisions: S. Nondiscrimination Provisions: In compliance with Title VI of the Civil Rights Act of 1964 and with Section 162(a) of the Federal Aid Highway Act of 1973, the Contractor, for itself, its assignees and successors in interest, agree as follows: i. Compliance with Regulations The Contractor will comply with the Regulations of the Department of Transportation relative to nondiscrimination in Federally assisted programs of the Department of Transportation (Title 49, Code of Federal Regulations, Part 21, hereinafter referred to as the "Regulations "), which are herein incorporated by reference and made a part of this Agreement. Page 2 of 3 11/16/20 I0 9 -2 -50 ii. Nondiscrimination The Contractor, with regard to the work performed by it after award and prior to completion of the contract work, will not discriminate on the ground of race, color, sex, mental or physical handicap or national origin in the selection and retention of Subcontractors, including procurement of materials and leases of equipment. The Contractor will not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the contract covers a program set forth in Appendix C of the Regulations. iii. Solicitations for Subcontracts, Including Procurement of Materials and Equipment In all solicitations either by competitive bidding or negotiation made by the Contractor for work to be performed under a subcontract, including procurement of materials or equipment, each potential Subcontractor or supplier shall be notified by the Contractor of the Contractor's obligations under this Agreement and the Regulations relative to nondiscrimination on the ground of race, color, sex, mental or physical handicap or national origin. iv. Information and Reports The Contractor will provide all information and reports required by the Regulations, or orders and instructions issued pursuant thereto and will permit access to its books, records, accounts, other sources of information and its facilities as may be determined by the State or the FHWA to be pertinent to ascertain compliance with such Regulations, orders and instructions. Where any information required of the Contractor is in the exclusive possession of another who fails or refuses to furnish this information, the Contractor shall so certify to the State, or the FHWA as appropriate and shall set forth what efforts have been made to obtain the information. v. Sanctions for Noncompliance. In the event of the Contractor's noncompliance with the nondiscrimination provisions of this Agreement, the State shall impose such contract sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: a. Withholding of payments to the Contractor under the contract until the Contractor complies, and /or b. Cancellation, termination or suspension of the contract, in whole or in part. T. Incorporation of Provisions §22 The Contractor will include the provisions of paragraphs A through F in every subcontract, including procurement of materials and leases of equipment, unless exempt by the Regulations, orders, or instructions issued pursuant thereto. The Contractor will take such action with respect to any subcontract or procurement as the State or the FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance; provided, however, that, in the event the Contractor becomes involved in, or is threatened with, litigation with a Subcontractor or supplier as a result of such direction, the Contractor may request the State to enter into such litigation to protect the interest of the State and in addition, the Contractor may request the FHWA to enter into such litigation to protect the interests of the United States. Pa 3 of 3 11/16/20 O 9 -2 -51