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HomeMy WebLinkAbout2012-06-05 Agenda and Support Documentation Town Council Evening SessionVAIL TOWN COUNCIL EVENING SESSION AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 6:00 P.M., JUNE 5, 2012 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: Consent Agenda: 1) Approval of May 1 and May 15 meeting minutes; (5 min.) PRESENTER(S): Various 3. ITEM/TOPIC: Town Manager Report: Vail Bike & Hike App (10 min.) PRESENTER(S): Various 4. ITEM/TOPIC: Presentation of the 2011 audited financial statements (15 min.) PRESENTER(S): Michael Jenkins, McMahan and Associates, LLC ACTION REQUESTED OF COUNCIL: The 2011 audited financial statements are presented for Council information; no action is requested BACKGROUND: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and copies made available for public inspection at the municipal building. The 2011 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A., CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION: None - Information only 5. ITEM/TOPIC: Results of the 2012 Town of Vail Community Survey (40 min.) PRESENTER(S): Suzanne Silverthorn/Chris Cares ACTION REQUESTED OF COUNCIL: Review the survey results and determine if additional follow up is needed. 6/5/2012 BACKGROUND: During the spring of 2012 the Town of Vail fielded a community survey similar to efforts conducted in the past. It consisted of questionnaires completed by full- and part-time residents, property owners and business owners to evaluate opinions on a variety of issues. Using survey techniques that permit comparisons to past research, the town employed a combination of personalized invitations via postcard mailings as well as open invitations to take the survey online. Respondents were also given a third option to request a mail-back version. The purpose of the survey is to evaluate respondents’ level of satisfaction with respect to a full range of services and to gather opinions on selected issues and areas of focus. Similar questions have been posed to Vail part-time and year-round residents on a periodic basis since 1987. The 2012 survey was designed to permit comparisons to past results, as well as to provide new insights on a variety of topics of current interest. STAFF RECOMMENDATION: None. 6. ITEM/TOPIC: Resolution No. 20, Series of 2012, A Resolution Authorizing the Town Manager to Sign a Wireless Communications and License Agreement Between the Town of Vail and NewPath Networks, LLC; and Setting Forth Details in Regard Thereto. (30 min.) PRESENTER(S): Ron Braden ACTION REQUESTED OF COUNCIL: Approve, amend or deny Resolution No. 20, Series of 2012. BACKGROUND: The Town Council wishes to enter into a wireless communications and license agreement with NewPath Networks, LLC to enhance the wireless communications services and to avoid unnecessary disruption and administrative burdens throughout the town. STAFF RECOMMENDATION: Approve, amend or deny Resolution No. 20, Series of 2012. 7. ITEM/TOPIC: Appointment of new members to the Commission on Special Events (CSE), Vail Local Housing Authority (VLHA) and Vail Local Licensing Authority (VLLA) boards. (10 min.) PRESENTER(S): Pam Brandmeyer ACTION REQUESTED OF COUNCIL: Staff requests the Town Council appoint one member to the CSE, one member to the VLHA and two members to the VLLA at the evening meeting. BACKGROUND: See memorandum and letters of interest attached to work session agenda item. 8. ITEM/TOPIC: Ever Vail - The Community Development Department requests that the major subdivision and Ordinance Nos. 7, 8 and 9, Series of 2011 be continued to the July 17, 2012, public hearing. Major Subdivision: A request for a review of a preliminary plan for a major subdivision, pursuant 6/5/2012 to Chapter 13-3, Major Subdivision, Vail Town Code, to allow for the creation of two lots for the redevelopment of the properties known as Ever Vail (West Lionshead), located at 862, 923, 934, 953, 1000 and 1031 South Frontage Road West, and the South Frontage Road West right-of-way/unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080062) Rezoning (Ordinance No. 7, Series of 2011): A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision located generally at 862, 923, 934, 953, 1000, and 1031 South Frontage Road, and the South Frontage Road right-of-way/unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080061) Special Development District Amendment (Ordinance No. 8, Series of 2011): A request for a recommendation to the Vail Town Council for a major amendment to Special Development District No. 4, Cascade Village, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the removal of Development Area D (Glen Lyon Office Building) from Special Development District No. 4, Cascade Village, and for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to include the subject property in the Lionshead Mixed Use 2 District, located at 1000 South Frontage Road West/Lot 54, Glen Lyon Subdivison, and setting forth details in regard thereto. (PEC090036) Title 12, Zoning Regulations, Vail Town Code, Amendment ( Ordinance No. 9, Series of 2011): A request for a final recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 12-10-19, Core Areas Identified, Vail Town Code, to amend the core area parking maps to include "Ever Vail" (West Lionshead) within the "Commercial Core" designation, and setting forth details in regard thereto. (PEC080065) (5 min.) PRESENTER(S): Warren Campbell ACTION REQUESTED OF COUNCIL: The Community Development Department requests that the major subdivision and Ordinance Nos. 7, 8, and 9, Series of 2011 be continued to the July 17, 2012 public hearing. BACKGROUND: Major Subdivision: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, on the preliminary plan for the major subdivision to establish Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5-0-2 (Viele and Cartin recused). Rezoning: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a zone district boundary amendment to establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5- 6/5/2012 0-2 (Viele and Cartin recused). Special Development District Amendment: On January 24, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a major amendment to Special Development District (SDD) No. 4, Cascade Village, to remove the Glen Lyon Office Building from the SDD in order for it to be incorporated into the Ever Vail Subdivision, by a vote of 4-0-2 (Viele and Cartin recused). Title 12, Zoning Regulations, Vail Town Code, Amendment: On January 11, 2010, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a prescribed regulations amendment to Section 12-10-19, Core Areas Identified, Vail Town Code, by a vote of 4-0-2 (Viele and Cartin recused). STAFF RECOMMENDATION: The Community Development Department requests that the major subdivision and Ordinance Nos. 7, 8, and 9, Series of 2011 be continued to the July 17, 2012 public hearing. 9. ITEM/TOPIC: First Reading of Ordinance No. 7, Series of 2012, an ordinance repealing and reenacting the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the conversion of one existing fractional fee club unit to one dwelling unit, located at 16 Vail Road (The Sebastian) / a portion of lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (20 minutes) PRESENTER(S): Rachel Dimond, Dominic Mauriello ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 7, Series of 2012, upon first reading. BACKGROUND: On May 12, 2012, the Planning and Environmental Commission (PEC) recommended approval, with conditions, to the Vail Town Council for a major amendment to Special Development District No. 6. The PEC also approved, with conditions, the amendment to an existing conditional use permit for the reduction in fractional fee units. Should Ordinance No. 7, Series of 2012 be approved, The Sebastian will be permitted to increase the number of dwelling units from one to two and decrease the number of fractional fee units from 50 to 49. STAFF RECOMMENDATION: The Planning and Environmental Commission recommends the Vail Town Council approves, with conditions, Ordinance No. 7, Series of 2012, upon first reading. The PEC recommends the following condition be placed on the approval: 1. “The applicant shall amend all applicable condominium maps to reflect the change in use and cause said maps to be recorded in the office of the Eagle County Clerk and Recorder within 90 days of approval of the major amendment to the special development district application.” 10. ITEM/TOPIC: First Reading of Ordinance No. 8, Series of 2012, an ordinance amending the Official Zoning Map to rezone the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use 6/5/2012 District, located at 1778 Sunburst Drive/Vail Golf Course Clubhouse Parcel, and setting forth details in regard thereto. (60 minutes) PRESENTER(S): Bill Gibson, Community Development Department ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 8, Series of 2012, on first reading. BACKGROUND: The Vail Golf Course clubhouse and parking lot are located on separate parcels. The Vail Golf Course clubhouse is located in the Outdoor Recreation District and the parking lot is located in the General Use District. The purpose of this ordinance is to consolidate the Vail Golf Course clubhouse and parking lot sites into the same zone district. The proposed ordinance is also intended to facilitate renovations to the Vail Golf Course in response to the November 8, 2011 election. In November 2011, the Vail electorate approved ballot question #1 which re-allocated conference center funds, in part, for the “Expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.”The subject Vail Golf Course (including the clubhouse) was annexed into the Town of Vail in 1972 and subsequently zoned to the Agriculture District. In 1973, the golf course (including the clubhouse) was rezoned from the Agriculture District to the newly created Agriculture and Open Space District. In 1995, the Vail Golf Course (including the clubhouse) was rezoned from the Agriculture and Open Space District to the newly created Outdoor Recreation District. The Vail Golf Course parking lot site was also annexed into the Town of Vail in 1972 and in 1973 was zoned as part of Special Development District No. 1, Sunburst Development. In 1977, the Vail Golf Course parking lot was rezoned from SDD No. 1 to the Public Use District (which was renamed the General Use District in 1994).On May 14, 2012, the Planning and Environmental Commission approved, with conditions, a final plat establishing the Vail Golf Course Clubhouse Parcel. This final plat established the golf course clubhouse as a separate development site from the remainder of the unplatted golf course parcel. At that same hearing, the Planning and Environmental Commission forwarded a recommendation of approval for the proposed rezoning of the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District by a vote of 4-3-0 (Cartin, Pratt and Rediker opposed). STAFF RECOMMENDATION: The Planning and Environmental Commission recommends the Vail Town Council approves Ordinance No. 8, Series of 2012, on first reading. 11. ITEM/TOPIC: Adjournment (9:30 p.m.) 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Consent Agenda: 1) Approval of May 1 and May 15 meeting minutes; PRESENTER(S): Various ATTACHMENTS: May 1 2012 Meeting Minutes May 15 2012 Meeting Minutes 6/5/2012 Town Council May 1, 2012 minutes Page 1 Vail Town Council Meeting Minutes Tuesday, May 1, 2012 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Andy Daly. Members present: Andy Daly, Mayor Kerry Donovan Kevin Foley Ludwig Kurz Greg Moffet 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 a Proclamation No. 4, Series of 2012, designating the month of May, 2012 as “Building Safety Month” in the Town of Vail. Ludwig Kurz read the proclamation for "Building Safety Month" into the record. Moffet made a motion to adopt Proclamation No. 4, and Foley seconded the motion. A vote was taken and the motion passed unanimously, 7-0. Martin Haeberle, Chief Building Official, thanked Council. He said there will be several events supporting building safety month throughout the month including: disaster mitigation; drought resistant landscaping; fire safety; a tour of the fire station; backyard safety and others. The second item on the agenda was Citizen's Participation. Brandmeyer introduced Shane Gremer on behalf of Safebuilt. Safebuilt is celebrating their 25th anniversary and is giving back to the community of Vail. They presented a check to Red Sandstone Elementary School Principal Katherine Lange for $1,000. Lange thanked Gremer and Safebuilt for the generous donation. Daly thanked Safebuilt for investing in Vail’s community. Chris Moffet, wife of Councilmember Greg Moffet, brought in a cake to celebrate Greg’s birthday. The Council and attendees sang happy birthday to Greg. Jeff Layman introduced himself to the Council and the community as a candidate for commissioner for Eagle County. He stated Peter Runyon is term limited and cannot run again. He said he has the knowledge, skill and abilities to serve county residents well. He said he is not a one issue candidate. He said he will remember that Vail is a predominant economic driver in the county. He said the Primary Election is June 26 and the General Election is November 6th. He asked people to vote at both elections. 2 - 1 - 1 6/5/2012 Town Council May 1, 2012 minutes Page 2 Jamie Duke introduced himself as the new Chairman of the Board for the Colorado Ski Museum. He thanked the town for 37 uninterrupted years of support. He said there has been confusion on what the museum’s role is in Vail. He said the board passed a resolution at their last meeting which clarified their role and responsibilities in the Vail area. The intent is to serve local and state ski museum roles. The museum was originally funded by the Town of Vail, Vail Resorts and the Forest service. The museum’s site is ideal and as a community and statewide museum. He read the resolution into the record. The Resolution will be attached for the record. Daly thanked Duke for the clarification regarding their important role to the community and the ski and snowboard industry. The third item on the agenda was the Town Manager's Report. Greg Hall discussed the re-zoning of the Golf Course Clubhouse and said the application to the Planning and Environmental Commission (PEC) had been submitted for General Use zoning. If all goes as planned, this project will be in front of Council on June 5, 2012. A text amendment will also clean up the code language. Zemler addressed the replacement of one of the fire trucks. He said the replacement would be a wild land fire fighting truck, which is a Type 7 vehicle. The current Type 6 vehicle will be added back into the fleet. The new truck will truly be a wild land fire truck to enhance Vail’s ability to respond to any wild land fire issue. The Eagle River Fire District and Eagle Fire District have these vehicles and this will bring the total up to about 6 or 7 wild land fire trucks that can be utilized across Eagle County. Tjossem asked if a fire is on Forest Service or BLM land, would Vail go after it as if it’s in Vail. Zemler said initially, the Vail Fire Department would definitely strike immediately until other resources arrived. The objective is to contain the fire as quickly as possible. The fourth item on the agenda was a review of the ballot language and voter poll for a proposed tax increase for the purpose of creating, sustaining and ensuring a dedicated funding source for qualified athletic and cultural events and programs in the Town of Vail and supporting operations and infrastructure in the Town of Vail related to special events. Kelli McDonald, Economic Development Manager, reviewed the memorandum with Council. She said staff is requesting the Council review the ballot language and voter poll questions presented by Magellan Strategies and provide direction for the polling scheduled to begin May 7, 2012. At the April 3 meeting, Council directed up to $15,000 be spent on a voter poll to gauge support for a proposed tax increase. Such taxes would require approval by the Vail electorate. The proposed ballot issue of an annual levy of an additional one and one-half percent (1.5%) lodging tax and one-half percent (.5%) sales tax on all transactions the town’s existing tax applies to, except for the sales of food for home consumption, is projected to generate $4.5 million annually, commencing January 1, 2013 and expiring on December 31, 2017. In 2012, the Council allocated approximately $2.4 million in funding and $300,000 to in- kind services for a total of $2.7 million for this same purpose. David Flaherty, with Magellan Strategies, discussed the proposed language and the voter poll his company will be doing for this issue. He said due to trends, a cell phone cannot be used to 2 - 1 - 2 6/5/2012 Town Council May 1, 2012 minutes Page 3 poll voters. They have to attempt to call land lines and then cell phones. He proposed a three mode interview approach. The first attempt will be to call land lines for three nights, then attempt to contact registered voters by cell phones (they will comply with federal regulations); and then attempt to contact people via on-line email addresses. A web-based survey will be on- line and they will send emails to registered individual voters. To participate in the online survey, they are requesting the first and last name of the person and their birth year. Once the survey is taken, it’s locked in so they can’t vote again. He said through the three modalities, they hope to get 300 surveys done. He reviewed the ballot language with Council. Rogers said the ballot language needs to be consistent with what the survey questions are asking. Daly said they haven’t had a discussion on how the funds will be allocated relative to existing organizations and to new events. Also, if this moves forward, will approximately $2.1 million be put into special events and other activities, what type of return are they looking for and what is the urgency to get this done now. Kelli McDonald, Economic Development Manager, said this is not the time to discuss how the funds will be allocated as this was discussed previously by Mia Vlaar. Daly said he doesn’t want to put the cart before the horse. Rogers said she has the same concerns and wants to know how they will be allocating it. Will it be the same as we are currently doing or will it be different. What if a constituent asks the question, what is Council going to tell them. Tjossem said there were tiers that were part of the original proposal and descriptions of each tier. She said the application process is extensive. She asked if Rogers and Daly would be comfortable moving forward with just the criteria of the tiers. Rogers said the Council hasn’t agreed to use the tiered system. Rogers said people don’t like to raise taxes. Zemler said this is time sensitive and needs to stay on track. McDonald said the results would be brought to Council at a June meeting. She stated the criteria and details of the tiering method would need to be finalized prior to going on the November ballot in July if they have a positive response from the survey. Donovan said there are a lot of questions to be answered prior to getting it on the November ballot. Tjossem said Council may decide to hold off on getting it on the November ballot. Daly said the model is good but there are already groups that have expectations of the amount of funds they will be receiving. Daly asked if there is a savings to the town, shouldn’t there be a property tax refund to the taxpayers. Moffet said the five-year sunset clause on this is a great concern to him. If they reduce taxes, how would the town fund events after the five years. Michael Kurz, Vail resident, said they are listing twelve events in the poll and most are iconic events. He asked what percentage of these particular events is part of the total events. He said the ones chosen are problematic. He said these are events everyone likes. He wants more balance between iconic events and lesser known events in the poll. He said there is a question about what percentage the town would put in and if the promoters put in less money, are we funding the promoters or should they return money to the town. 2 - 1 - 3 6/5/2012 Town Council May 1, 2012 minutes Page 4 Rich ten Braak, with the Vail Chamber and Business Association (VCBA), said the VCBA members have discussed this issue but they are waiting for the poll results. Michael Cacioppo said the ballot language is too vague. He read the sunset language and said that was the only part of the ballot language that made sense. He said not having sunset language would not get this passed. He asked Flaherty what other projects he has polled in Eagle County. Flaherty said he handled the Eagle River Station (ERS) poll. Jim Lamont, representing the Vail Village Homeowners Association (VVHA), asked how the on- line poll would work. Flaherty said they want to link and post the survey on the town’s website. They would match the person and their address. Lamont stated the ballot language should say “draft ballot question” as there needs to be flexibility to change the ballot language after the poll is done. This is a time sensitive issue which needs to get it into the process, but they need flexibility on how the language will read. This is an economic development tool. Mia Vlaar, representing the Athletic and Cultural Events (ACE) group, thanked those who participated in the discussion and said they had valid comments. She said the point of this discussion is to get the poll done and see if there is community support for the ballot initiative itself. Tjossem asked Vlaar to explain why a sunset clause was included. Vlaar said this was to take what they are proposing, have a cohesive process to see if it works and then go back to the voters again after the sunset, to see if the community wants to keep it. Donovan said Lamont’s comment to add “draft ballot question” to the language is important and is an honest way to proceed. She said Kurz’ comments to add more variety of events to the poll survey is valid. Tjossem also agreed with Donovan. Rogers said her concern is the language as is, is too narrow. Flaherty said they have time to put this off in the next two weeks. Daly said the current committee and two council members should meet and modify the language. He feels the best thing to do is to table this item to the next meeting. Further discussion ensued. Donovan made a motion to make the language more narrow and add “draft” to the survey poll document, and the motion was seconded by Foley. A vote was taken and the motion passed, 4-3 with Moffet, Rogers and Daly opposed. Rogers said she thinks this process is placing the cart before the horse. The fifth item on the agenda was Resolution No. 22, Series of 2012, a resolution approving the sale of real property in the Town of Vail legally described as a part of the Southeast Quarter of Section 6, Township 5 South Range 80 West of the 6th Meridian According to the Map Thereof Recorded in the Office of the Eagle County, Colorado Clerk and Recorder; and Setting Forth Details in Regard Thereto. Matt Mire, Town Attorney, said a revised Purchase and Sale Agreement was handed out and is at the back of the room for the public, and a copy was placed in front of Council. He reviewed the resolution changes and said the resolution approves the sale of the property. 2 - 1 - 4 6/5/2012 Town Council May 1, 2012 minutes Page 5 Daly asked Mire if they were going to add the language to the resolution to move forward with the sale of the property to encourage the long term residence of the Steadman Clinic and the hospital to stay in Vail. George Ruther, Community Development Director, stated that language was in the ordinance. Moffet made a motion to approve Resolution No. 22, Series of 2012, and the motion was seconded by Rogers. A vote was taken and the motion passed, 7-0. The sixth item on the agenda was first reading of Ordinance No. 2, Series of 2012, an ordinance amending Chapter 12-6, Residential Districts, Vail Town Code, pursuant to Section 12- 3-7, Amendment, Vail Town Code, to establish a new zone district, Vail Village Townhouse (VVT) District, and setting forth details in regard thereto; and Resolution No. 7, Series of 2012, amending Chapter VII, Vail Village Sub-Areas, East Gore Creek Sub-Area (#6), Vail Village Master Plan, pursuant to Chapter VIII, Implementation and Amendment, Vail Village Master Plan, to include recommendations related to a new Vail Village Townhouse (VVT) District, and setting forth details in regard thereto. George Ruther said this process has been on going for two years. Staff identified there was a blatant and clear need that this section of the code needed to be cleared up. He said they have seen about three or four projects come through and this process is very time consuming. He said staff has worked long and hard on a solution that achieves the objectives in an equitable fashion. This ordinance has created an incentive that allows for redevelopment to occur. This will be an easier and clearer process. Creating the design guidelines will maintain and preserve the character of the neighborhood. Tjossem reminded the Council that staff came up with a creative way to solve a problem that the town has been grappling with for a very long time. Rogers said this is a well drafted ordinance, and the process has gone on for over two-and-a- half years. She asked what the final decision was on the gross residential floor area (GRFA): was it 1.25, 1.35 or 1.50. Council had given a recommendation of 1.25. Campbell said the final recommendation by PEC was 1.35. Dominic Mauriello, representing some of the homeowners, said they wanted the GRFA to be 1.50. He said at that time these were built, there were no design guideline principles in place. Mauriello reviewed a three-dimensional model with Council with regard to the GRFA. Further discussion ensued regarding height, GRFA, setbacks, number of stories, etc. Kyle Webb, Architect, showed another model that tested and maxed out the GRFA. He showed what is allowable under current code and what could happen now but probably couldn’t be built. Mauriello said they could get away with not having GRFA but no building could be more than 1.73 GRFA. He said Council should consider not having GRFA. Moffet was concerned about that comment. Rogers is concerned with the height being 43 feet. 2 - 1 - 5 6/5/2012 Town Council May 1, 2012 minutes Page 6 Mauriello said the need for 43 feet is to allow for a ridge and down slope toward the creek. He said this is not noticeable from the street side. Campbell pointed out one of the design standards is that the roofs are pitched and sloping and in keeping with the character of the neighborhood. Rogers is concerned there will be too many tall buildings in town around Vail Trails East. Further discussion on height and setbacks ensued. Tjossem said the other buildings around this area are four and five levels. This is a different scale. The design guidelines preserve the neighborhood and will allow the owners to redevelop. They need incentives to regenerate and upgrade their 1960’s buildings. She said staff has done a lot of work in this process and will vote in favor of this ordinance. Kurz said Tjossem explained it well and agrees this area needs to be improved. Council needs to be serious about future economic viability and incentivize to have these redeveloped. Donovan said staff has addressed the concerns of Council and appreciates their efforts. The guidelines encourages the intent. She is not comfortable about the 1.35 GRFA in the ordinance. She could support the ordinance without the 1.35 allowance. Moffet said current successes are key to the ability to adapt. He doesn’t see this as damaging. He is fine deleting 12-6j-9, but is okay to keep in if other Council members want it left in. He said Council wants this area to be as nice an investment as the rest of the community. Rogers said getting over the character of the neighborhoods is the hard part for her. She feels this changes the character of Vail. She wants to go with 1.25 GRFA. Kyle Webb said the perception is the same from the street whether it’s 1.35 or 1.25 GRFA. He said other parts of the neighborhood have changed. Owners have put their redevelopment on hold waiting for this ordinance. Mauriello said these units could be condominiumized and become larger. There could be lots of things that can be done that could make it bigger. Daly said what is being proposed dramatically facilitates the development process without penalties. Staff has done a terrific job coming up with guidelines. He is uncomfortable passing this without GRFA. He is comfortable with the staff recommendation of 1.25 even though the PEC recommendation was 1.35. Moffet made a motion to approve Ordinance No. 2 with the staff findings in the memorandum, with a change from 1.35 to 1.25 for the GRFA. The motion was seconded by Donovan. A vote was taken and passed 6-1, Foley opposed. Staff requested the Council table Resolution No. 7, Series of 2012, to its May 15, public hearing to correspond to the second reading of the associated Ordinance No. 2, Series of 2012. Moffet made a motion to table Resolution No. 7 to the May 15, meeting to be heard at the time second reading of Ordinance No. 2 is heard. The motion was seconded by Donovan. A vote was taken and the motion passed, 7-0. 2 - 1 - 6 6/5/2012 Town Council May 1, 2012 minutes Page 7 The seventh item on the agenda was Resolution No. 20, Series of 2012, a resolution authorizing the Town Manager to sign a Wireless Communications and License Agreement between the Town of Vail and NewPath Networks, LLC; and setting forth details in regard thereto. Ron Braden, IT Director, said the 4G cellular service is with Crown Castle. He said this agreement is to bring 4G wireless to Vail and revamp the existing wireless network now in place. He said the Council wished to enter into a wireless communications and license agreement with NewPath Networks, LLC to enhance the wireless communications services and to avoid unnecessary disruption and administrative burdens throughout the town. Moffet made a motion to approve Resolution No. 20, Series of 2012, a resolution authorizing the Town Manager to sign a Wireless Communications and License Agreement between the Town of Vail and NewPath Networks, LLC; and setting forth details in regard thereto. The motion was seconded by Kurz. Foley asked if this agreement is replacing Century Link on the WiFi side. Braden said yes, this is a free and working WiFi system that will bring it up-to-date and the town will get much better service. The 4G service parameters are not in this agreement as that will be with various carriers. Daly said there is no way for us to force Crown Castle to ask for guarantees to provide service for a world class resort. There is nothing that guarantees better service and may not get us in a better position. Braden said the carriers will hold Crown Castle to do this. He said technology changes from year to year and is hard to nail down. He said the communication expert reviewed the technical aspects of the agreement and signed off on this agreement. Mire said Ken Feldman looked at this agreement and had some concerns and Mire had questions as well. He said he shares some concerns and wants a work session to discuss the agreement as a 30- year term with no ability to raise standards should be addressed. Rogers asked if it will be free WiFi across the town. Braden said yes. Moffet made a motion to withdraw his previous motion at this time. Kurz withdrew his second of the original motion. Moffet then moved to table this item to the May 15th meeting, and the motion was seconded by Foley and Kurz. Donovan asked for copy of what the coverage areas are, not just the cellular. Braden said the goal is to provide town wide coverage. A vote was taken and the motion passed, 7-0. The eighth item on the agenda was the Ever Vail project. Warren Campbell, Chief Planner, stated staff requests the major subdivision and Ordinance Nos. 7, 8 and 9, Series of 2012 be continued to the June 5, 2012, public hearing. Moffet made a motion to continue the major subdivision and Ordinance Nos. 7, 8, and 9, Series of 2011 to the June 5, 2012 public hearing. The motion was seconded by Kurz. 2 - 1 - 7 6/5/2012 Town Council May 1, 2012 minutes Page 8 Foley asked why this item was being tabled again. Daly said it’s because the developer improvement agreement hasn’t been done. A vote was taken and the motion passed, 7-0. The ninth item on the agenda was adjournment. As there was no further business, Foley made a motion to adjourn and the motion was seconded by Donovan. A vote was taken and the motion passed unanimously, 7-0. The meeting adjourned at 8:35 p.m. Respectfully Submitted, __________________________________ Andy Daly, Mayor Attest: ________________________________ Lorelei Donaldson, Town Clerk 2 - 1 - 8 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 1 Vail Town Council Meeting Minutes Tuesday, May 15, 2012 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Andy Daly. Members present: Andy Daly, Mayor Kerry Donovan Ludwig Kurz Greg Moffet Margaret Rogers Susie Tjossem Members Absent: Kevin Foley Staff members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager _________________________________________________________________ The first item on the agenda was the Vail Youth Recognition Awards for 2012. Scott O’Connell, representative for the Vail Valley Exchange and the Vail Recreation District, presented the 2012 Vail Youth Recognition Awards for 2012 to Battle Mountain High School junior Meredith Steinke, and Vail Mountain School senior, Sage Ebel. These awards were created to recognize and award youth in Vail for their excellence in academics and as great role models for their peers. The second item on the agenda was Citizen's Participation. Jim Lamont, representing the Vail Homeowners Association (VHOA), said they have been watching the Ever Vail project being continued for quite some time. They have been looking for the Ever Vail project to be developed and are curious to get an update on where the Ever Vail process will continue. Daly said what has delayed was the negotiation of the Developer Agreement. This should be in front of Council within 30-45 days, then back to the approval process in July. The third item on the agenda was a discussion regarding the water supply and drought conditions in Eagle County by Eagle River Water and Sanitation District (ERWDS) representatives. Diane Johnson, Public Affairs and Communications Director for ERWSD, said they have been notifying and educating as many people as possible on drought conditions in the area and how to handle it. Eagle County is classified as a D2 class or severe conditions area. Overall 95% of Colorado is in drought conditions. The lack of winter snowpack is the cause of the drought conditions in Colorado. She reviewed the power point presentation with Council. She said the peak run day is usually around May 2nd. This year it was two months early, March 4-8. As of May 14, snow pack is 57% of average. Snowpack is Colorado’s primary water reservoir. 2 - 2 - 1 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 2 Todd Fessenden, Director of Operations for ERWSD, noted the improvements they have done to create more efficient use of water. He said the Vail Golf Course is a community leader in improving their water system. He reviewed the improvements that have been done since 2002: expansion of capacity; tank capacity; improved intake structures; identification of ground water lost within the system due to leaks was reduced from 30% to 10%; and managing water demand through community actions. The drought management priorities are public safety and health (maintain fire storage and normal indoor use); aquatic health (proactively support stream ecology); local economy (recreation and tourism); and reliability (minimize disruption of service). He said the prevention and coordination will help increase monitoring of water use regulations. They will work with local governments to identify and prioritize through an intergovernmental agreement based on priority needs. ERWSD will coordinate necessary diversions, processes and outreach education. They are working with landscapers and educating property owners. Johnson said there has been a lot of great work done with town departments. They have been working with Fire and Emergency services on wildfire preparedness; protection of critical infrastructure and safety training; working with Public Works to prioritize water use in parks and public spaces and irrigation permit processing; and landscaping requirements with the Community Development Department. They will be focusing on outdoor usage with the community. They are preparing people to make plans this summer when outdoor usage will be restricted. They are educating them on how to be prepared when a notice is issued that water will not be available for outdoor usage. The fourth item on the agenda was the Consent Agenda, which included the April 3 and April 17, meeting minutes. Moffet made a motion to approve the consent agenda and the motion was seconded by Donovan. A vote was taken and the motion passed, 6-0. The fifth item on the agenda was the Town Manager Report. There was nothing to report. The sixth item on the agenda was Resolution No. 21, Series 2012, a resolution authorizing the Town Manager to enter into agreement(s) between the Town of Vail and selected vendors for the purchase and installation of financial systems for the town. Kathleen Halloran, Budget Manager, stated staff reviewed several finance systems. The town staff has chosen New World Systems Corporation for the financial system upgrade. She said this system doesn’t meet all of the town’s financial system needs but meets most of them. She requested Council approve the Town Manager to enter into an agreement with New World Systems. Overall, staff will keep the project within budget. Daly asked if all four systems that the town has could be done by one vendor and when staff would implement the new system. Halloran said one system for all the needs would be wonderful. However, there is not an available option, especially for the sales tax component, as there are few municipalities that are self collecting for sales tax like Vail. She said they would move forward as early as June and go “live” in October. Zemler said one of the challenges is the possible move of the municipal building. Halloran said the current AS 400 financial system is directly connected to the 2 - 2 - 2 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 3 municipal site and cannot be accessed remotely. The new system is web based and can be accessed from several sites. Moffet made a motion to approve Resolution No. 21, and the motion was seconded by Tjossem. A vote was taken and the motion passed, 6-0. Zemler thanked staff for the tremendous number of hours expended in time, effort and research put into this process. The seventh item on the agenda was the Welcome Center Operations discussion. Suzanne Silverthorn did a historical recap of how this process and discussion came about. She said the Town of Vail (TOV) has historically provided the funding and facilities to operate visitor centers in Vail Village and Lionshead in its role to stimulate economic vitality and prosperity for Vail businesses. For many years, the centers were managed by a non-profit, the Vail Valley Chamber & Tourism Bureau (VVCTB). In 2005, a subcommittee was created with representation from town staff and Council to refine a request for proposal (RFP) process for the future operation of the centers based on a set of singular guest service goals, with an emphasis on equal representation of all Vail business license holders. This included elimination of a commission fee for lodging and activities booked within the center, a policy which remains in place today. During the 2005 RFP process, operational bids were submitted by the VVCTB, Vail Chamber & Business Association (VCBA) and Vail Info, Inc. The review team recommended selection of Vail Info, Inc., to operate the centers, in part, because its independent status as a for-profit business would align best with the town’s vision and goals in providing fairness in representing the business community. Since then, Vail Info, Inc., has been contracted to operate the visitor centers for two-concurrent three-year terms, plus a one-year extension to allow the town to complete initial phases of the Guest Enhancement Initiative, including the opening of the new Lionshead Welcome Center. The current operational contract with Vail Info, Inc., ends on September 30, 2012. This $206,813 contract provides for 5,784 hours of annual operation ($198,290), plus new services to include scheduling and coordination of the Community Hosts ($8,523). The review team, which included Council members Kerry Donovan and Susie Tjossem, and staff members, JP Power, Krista Miller and Suzanne Silverthorn, evaluated the desired scope of services for future operation of the Welcome Centers which incorporates the Guest Enhancement Initiative programming components of high-touch/high-tech. The review team identified two operational approaches for consideration and policy direction by the Council: 1) Selection of contract operator via an RFP process. The RFP would be issued in May, 2012 with the contract to begin Oct. 1, 2012. (Note: Another alternative is to negotiate a new contract with the existing contract operator, Vail Info. Inc.); or 2) Town-operated function overseen by a Town of Vail guest services manager and guest services specialist with support from TOV seasonal employees and volunteer hosts to begin Oct. 1, 2012. After evaluating the two approaches and the pros and cons associated with each, the review team recognizes inherent conflicts within the recently adopted Town Council Strategic Plan. On the one hand, the Council has endorsed actions to “develop an economic development strategy to encourage small business to remain and to locate in Vail.” Another stated goal is to “improve the quality of the guest experience” that will set Vail apart from its competition. After thoughtful debate and consideration, the review team believes that while both operational approaches 2 - 2 - 3 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 4 would contribute to the Council’s overriding goal to improve economic vitality, a town-managed operation for the near-term (three years) would provide the greatest benefits. The rationale is as follows: because the Guest Service Enhancement Initiative is in its early stages, a town-managed operation for the near-term allows the Welcome Center programming to evolve more fully with greater opportunities for shared resources and consolidation of effort. Currently a work in progress, the opportunity to test and refine the operations in-house before a fixed contract is assigned would be of great benefit to the town and a future contractor. This pilot arrangement would provide the flexibility for adjustment and adaptation on a daily basis. In addition, after analyzing associated costs, the Review Team has determined a town-managed operation would be comparable in cost to a contracted Welcome Center program. In this scenario, the return on the town’s investment would be derived from value-added services through increased coordination and integration as a result of direct day-to-day management of the Welcome Centers. Additional efficiencies are envisioned in the future with the possibility of enhanced guest services at Checkpoint Charlie, the ability to sell parking passes from the Welcome Centers, and potential staffing support for management of The Grand View community space. The town received correspondence from Bobby Bank with Vail Info., Inc., to continue to have a three-year contract. Staff is looking for policy direction from Council. Rogers asked if the staff has investigated if other towns manage this process in-house. Silverthorn said they didn’t uncover any entity that operated it as the town did, most were in- house. Daly said he thinks the review team should solicit input and feedback from the community. Tjossem said there were several community members involved in the Welcome Center process. Kurz asked if the RFP would be different from 2005 with the changes and enhancements. Silverthorne said this was an entirely different scenario from 2005. The current contract is static and calls out specific levels of service and no ability to add new services or items. The current RFP could help with add-ons, new programming and would adapt to have active involvement. Tjossem said she was surprised at the number of town departments that are already involved in this process. Silverthorn said even though the current contract is a stand alone third party contract, there are town services provided to Info. Vail, Inc., with a significant amount of interaction from IT, Finance, Human Resources and other town departments. She said because some departments already have active involvement, it makes sense to bring it in house in the short term to figure out how to fine tune the process. Rich ten Braak, representing the Vail Chamber and Business Association (VCBA), asked if funding for the programs existing were tied in to the business license fee. Camp said the information contract is part of a departmental general fund budget. Daly asked if the cost would be the same as now. Silverthorn said it would be comparable and be a salaried employee. One of the “ah-has” in the process was the importance of hiking as an activity. The Vail Local Marketing District Advisory Council (VLMDAC) and the Commission on Special Events (CSE) would need to be consulted on how to staff the centers for special events coming to town and to bring in visitors. Ten Braak said they could reach out to their members to see how they feel about this shift. He said he hasn’t heard any complaints. This comes down to finances and he would like to see what is being proposed. There are a lot of components that need to be addressed. He asked if 2 - 2 - 4 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 5 the goals and objectives of the community will be addressed. He offered the VCBA services to help with this process. He doesn’t see the benefits of changing the current system. Tjossem said there are currently many loose ends to clean up and there is no final product yet. They need to find out who provides different components of the process and who will be responsible for different parts of the process. Bobby Bank, owner of Vail Info. Inc., said his staff has seen 500,000 guests and sold over $1.3 million in lodging to date. He is proud of his staff and company. He stated there is no commission for booking lodging. Staff has tried to courteously greet every guest, meet their every need and help benefit the community. Bank handed Council twenty-two letters of support from community members and businesses. Daly said the letters of support will be part of the public record. Bank said the task of promoting various entities has been easy as they don’t have an affiliation with any one entity. He said 90% of what they do is guest interactions of where various locations are in town. Ten percent is the bells and whistles type stuff. They have developed a “Vail app” and are excited to see it launched. He thanked the Council for the possible opportunity to continue to provide this service. Donovan asked Bank to give examples of the 90% and the 10% bells and whistles. Bank said getting last minute rooms for guests is 10% of what they do. The other 90% is to provide every other type of service to every guest as needed. They need to keep in mind they are there to help people get what they want. He said by 2014 most lodging will be booked on smart phones and not on computers. Dale Bugby, a local property management representative, said Bank came to him for support. He said he remembered how ugly and contentious this process used to be. He said this process is best done by an independent third party. He doesn’t want to see a small business be put out of business. He wants Council to adopt option number three and give Bank another three year contract. Moffet said he and Kurz have scars about the Welcome Center process from previous years when they were on Council. He said Bank advocates for customer service. He was disappointed that this process was designed before great ideas were discarded. He said customer service is not the town’s core competency. As a consequence he doesn’t feel the town can put customer service first. He doesn’t want a municipal product there. He asked who would be hired for three years. He said adding a new department goes against current personnel policies. He can’t support staff recommendations. He said Council ought to have Vail Info., Inc., for three more years, with a caveate that in another 3 years there would be a whole new ballgame. Rogers agrees with most of what Moffet said. However, she feels customer service within the town is very high. She doesn’t want to lose Vail Info., Inc., by taking what he has developed and then flounder. She said they should expand the scope of his responsibilities and ask him what he thinks would work as he is the expert. She recommended a fourth option to have the review team committee sit down with Bank and talk about expectations, what needs to be done and get his input of what can be accomplished. She said the town can’t afford to disregard ideas like the “Vail app.” She said they could greatly expand Vail Info., Inc.’s, scope of responsibilities and see if it can work. She doesn’t feel the Council has all the information they need to make a recommendation. 2 - 2 - 5 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 6 Donovan said the review team tried to remove the current Vail Info., Inc. stuff and to approach and see this process at the 30,000 foot level. The option Rogers recommended was not an option that was discussed within the committee. A discussion with Bank with increased scope of services discussion should be had with Bank. They don’t know how some of the pieces will operate. She said the pilot program didn’t include a three-year term. She said there may be potential unforeseen synergies to be had if this is brought in-house. Kurz said what the town has currently is not broken and things have gone well. His sentiment is along the lines of Moffet and there will be fifteen months of displacement of staff. He asked if staff should be burdened by this displacement. He is not sure how, after making the recommendation, the committee can work well with Bank and have an outcome of what is expected. The idea is good but the execution will be difficult. No decision should be made tonight as they need more information and feedback. He wants business and community input. Tjossem re-emphasized that Vail is a resort town and not just a municipality. She said this Council adopted a guest service initiative and Council and staff are passionate about it. She said this process wasn’t about Vail Info., Inc., or Bank. This was about being neutral and to see what structure was needed to integrate, coordinate and go in a different direction. She said within the scope from seven years ago this is not broken, but the scope and direction needs to change. She said staff already provides a lot of support to the welcome centers now. She stated Silverthorn laid out a great RFP on how to proceed. Daly said there are three alternatives on the table. The issues raised by Donovan to communicate with guests is exciting. The complexities have yet to be understood. He suggests extending the current contract with Vail Info., Inc., for one year and to continue to work it out, and to have one year to continue conversations and to fine tune the process. Zemler said he is concerned with the comment of leaving the process as is because it’s not broken. He acknowledged that Bank does a fine job within the scope of services as is in the contract now. The underlining themes of innovation and expansion of being better with technology and having better customer service was the purpose of this process. He said at a minimum he would like to use the RFP as a template. The thrust behind the RFP is to make this operation work better and to reinvigorate the process. There needs to be better integration and advocacy on behalf of the town’s initiative. His recommendation is to negotiate and use the RFP as the template. Daly agreed with that recommendation. The core principal is to embrace innovation. Bank needs to change his operations to incorporate this into his operation. Moffet said to remember the primary purpose is customer driven. He said it was incumbent upon the Council to take heed of what the customer is asking for, not what the town wants the customers to want. Tjossem said the community guest service enhancement is high customer touch, high tech and the next wave of what the customer wants. She said “Apps” are what the customers are using. The high touch and high tech has always been the basis of all the review team’s discussions. Rogers said a one year contract doesn’t work. She wants to incorporate Bobby Banks into the discussions and to consider having his company use the RFP parameters to redefine the operations of the information centers. 2 - 2 - 6 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 7 The eighth item on the agenda was Resolution No. 23, Series of 2012, a Resolution Approving a Scope of Services and a Fee for Triumph Vail MOB, LLC for certain development management services related to the Town of Vail municipal site redevelopment; authorizing the Town Manager to execute a Development Management Agreement on behalf of the town for provision of said services; and setting forth details in regard thereto. George Ruther, Community Development Director, stated the purpose is it approve Resolution No. 23, authorizing the Town Manager to execute a development and construction management agreement, on behalf of the Town of Vail, for the completion of the town's portion of the parking garage and required off site improvements. The scope of services generally described in Exhibit A of the resolution will be formalized in the agreement. The agreement shall be drafted in a form acceptable to the Town Attorney. Zemler said the dilemma is to go with either the flat fee versus a seven percent (7%) fee. They don’t know what the final cost will be. Rogers said she could live with the 7% but if the cost is more than $4 million, the money starts adding up. She wants to know that before the Council commits to the 7%. She said projects expand and it could be more than $280,000. Daly said it would be up to the Council to control the scope of the project. Ruther said in the parking structure, the greatest risk is how many parking spaces are built in the parking structure and how it is managed. This is the real question of why it’s a percentage fee versus a flat fee. Daly shares Rogers concern. They were told a fee of $280,000 was what they had agreed upon. Ruther said this was not true. Daly said this was not what Council was lead to believe at the work session. Tjossem asked if they can build in a “not to exceed” in the agreement. Kurz said he agreed with Ruther that if the town does their job, he is comfortable with the 7% fee. Tjossem is okay with 7% as well. Moffet made a motion to approve Resolution No. 23, with a change in Article No. 2 to change the fee to a 7% fee, and the motion was seconded by Kurz. A vote was taken and the motion passed, 6-0. Zemler said staff will commit to Council and to report to Council if they think it will surpass the $4 million cost. The ninth item on the agenda was an appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the determination of the Town of Vail Planning and Environmental Commission (PEC) that the zoning administrator correctly determined an appeal submitted by the Vail Gateway Plaza Condominium Association on January 4, 2012, was untimely, and therefore, could not be heard by the PEC. This determination was made in accordance with Section 12-3-3.3 of the Zoning Regulations of the Town of Vail. The Vail Gateway Condominiums are located at 12 Vail Road/Lot N, Block 5D, Vail Village Filing 1. George Ruther, Community Development Director, said there was quite a bit of material in the packet. On March 26, 2012 the Town of Vail PEC heard an appeal and voted 5-0-1 (Pierce 2 - 2 - 7 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 8 recused) to uphold the determination of the zoning administrator that the appeal filed on January 4, 2012, by the Vail Gateway Plaza Condominium Association was untimely, pursuant to Section 12-3-3.3, Appeals, Vail Town Code. Staff recommends the Council uphold the determinations of the zoning administrator and the Town of Vail PEC. The appeal was submitted after the 20 day time limit of the appeal process. TJ Vobril, representing the Vail Gateway Plaza Condominium Association (VGPCA), said the VGPCA wants to have their project reconsidered and the appeal to go back before the PEC. He went through the documentation submitted to Council for consideration. Nancy Adams, a homeowner, said 18 of the 20 owners want this appeal dismissed. She said Council should be aware the condominium association had time to process this and the court denied the request for an injunction. She said the condominium association information was speculation and Judge Thompson’s decision is part of the Council packet. She said the judge found the use was consistent with the homeowner’s association documents and the town code. He dismissed the restraining order and also found the permit was properly posted. Mire commented for the record, that the court found the association had actual notice of the construction permit and the contemplated use was properly noticed and available at the town for inspection. The letter from Ruther might have been interpreted incorrectly by the association. The code is very clear about when the decision is final. Mire said the determination was made prior to September 21, 2011, and complied with the zoning at the time. Vobril said he represents the homeowners association and Ms. Adams does not. He wants to find out if the association can be heard on the determination from the PEC. Mire pointed out the association had notice and time to have gone to the PEC prior to the deadline. Rogers made a motion to deny the appeal and to uphold the Planning and Environmental Commission decision, and the motion was seconded by Kurz. A vote was taken and the motion passed, 6-0. The tenth item on the agenda was second reading of Ordinance No. 2, Series of 2012, an ordinance amending Chapter 12-6, Residential Districts, Vail Town Code, pursuant to Section 12- 3-7, Amendment, Vail Town Code, to establish a new zone district, Vail Village Townhouse (VVT) District, and setting forth details in regard thereto; and Resolution No. 7, Series of 2012, amending Chapter VII, Vail Village Sub-Areas, East Gore Creek Sub-Area (#6), Vail Village Master Plan, pursuant to Chapter VIII, Implementation and Amendment, Vail Village Master Plan, to include recommendations related to a new Vail Village Townhouse (VVT) District, and setting forth details in regard thereto. Moffet said a variety of new information has been produced in the last few days. He wants more time to prepare on the subject. He said if the town goes to 1.35 ratio, a sizeable portion of the townhomes will lose square footage. Moffet made a motion to table this item to the June 5th meeting. Tjossem seconded the motion as there was an inadvertent error. If they are acting on this information, Council needs confidence to know that the information presented is correct. 2 - 2 - 8 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 9 Warren Campbell, Chief Planner, said the information in the packet is correct. Unfortunately, there was a typographical error carried forward in the table presented. He said the data in the tables accurately reflects the three goals of the policy. If they want to move forward tonight, they can discuss the difference between 1.25 versus 1.35 and what that means. Daly said Campbell said it was a typo but they had heard it was a miscalculation. Moffet said this was not an intentional error. Campbell said there is a miscalculation on the Vail Trails Chalet and Vail Trails East section of the table. The error would have taken the calculations on the Vail Trails Chalet from 1.22 to 1.33 and the Vail Trails East from 1.17 to a 1.4. Those numbers fall within the acceptable range that were exhibited to the PEC and reflect what GRFA was allowed for those properties John Dunn, representing one of the owners, the Bridgewater’s, stated the Bridgewater’s have been under this uncertainty for three-and-a-half years. This is now a town initiated ordinance and they urge the Council to adopt the ordinance without further delay. Jim Lamont said this was a sufficiently critical issue and didn’t think this was communicated with affected parties sufficiently. He said this is somewhat worrisome. He asked for sufficient time to send out to affected parties in order to formulate a response back to the Council and have public input that is informed. Jerry Orton, representing the Vail Town House Association, supports the Council motion to continue this item and wants Council to hear a proposal to have a broader ratio for these condominiums to redevelop. This needs to be incentivised and will present additional nuances. Dale Bugby, Vistar Real Estate, representing some of the owners of the condominiums, said he supports the decision for Council to table this item. The Council needs to get more input from the condominium owners. These were the first condominiums built in the 1960’s. They are concerned about street parking and losing development rights. They want the parking to be their right from the beginning. A permanent right not a revocable right; and they also want to have the 1.50 GRFA ratio. Chris Galvin wants this item tabled as well. He said he has been coming to Vail for 47 years and the calculation error may impact homeowners. He wants the data to be accurate. Dominic Mauriello asked that this item be tabled to the second meeting in June which is June 19th. Moffet made an amendment to his motion to table to the June 19th meeting and Tjossem seconded the motion. Tjossem stated one thing not addressed is the diminished development rights and whether that feels right to potentially take away owner’s development rights. That wasn’t one of the criteria worked under. Donovan asked if the recommendation would have changed if this error had not occurred. Campbell said no, the errors still fell in the range based on the town’s polices and goals. Daly said he would like communications between staff and Council when issues come up so if Council get calls or people on the streets come up to them, they are informed on the issues. 2 - 2 - 9 6/5/2012 Town Council Meeting Minutes of May 15, 2012 Page 10 A vote was taken and the motion passed 4-2 with Rogers and Donovan opposed. The eleventh item on the agenda was adjournment. As there was no further business, Moffet made a motion to adjourn and the motion was seconded by Donovan. A vote was taken and the motion passed unanimously, 6-0. The meeting adjourned at 8:33 p.m. Respectfully Submitted, __________________________________ Andy Daly, Mayor Attest: ________________________________ Lorelei Donaldson, Town Clerk 2 - 2 - 10 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Town Manager Report: Vail Bike & Hike App PRESENTER(S): Various 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Presentation of the 2011 audited financial statements PRESENTER(S): Michael Jenkins, McMahan and Associates, LLC ACTION REQUESTED OF COUNCIL: The 2011 audited financial statements are presented for Council information; no action is requested BACKGROUND: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and copies made available for public inspection at the municipal building. The 2011 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A., CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION: None - Information only ATTACHMENTS: 2011 cover letter 2011 Financial Statements 6/5/2012                   !! "#$%&'()*''%% +(), -%%.  "#$%&'()*'/%' ,  0)')% 1  '/2+%3* 4            567, 5 8 7,  ,69 ,  :69   ,  1  .  "#$%&'()*''%%"#$%&)((*-##2 "#$%&22'*-('/                                     !"#$""%&     '   (      )        %      *)  (       (((    )(  %  )    )(          + ,  #$""        %+  )(   (    ((   -  )(    )   ) %          )     .     )  % )       ) /           (        % 0  )    )(        ((  )    ) *. ) -(   (       (      %    )  (         )             (        )    )    -(  %      )      1 2  )     3"$$$  !"#$""   ) *-(        (  )        4 % 2  )     -           (       ) %     .    (     (  (                    .%             )        ) )  (  ) ( )   %     &     '      .  .         )                  (((   ) %   . .        (  )            )))         .%  5( (    (        )  )      )( ) )                )           *( %(  (     )   )     4 - 1 - 1 6/5/2012                 0 '    )) '     (   )        ) (   %  (                      )      ) /                      (  ( % 6        ! 4 - 1 - 2 6/5/2012 Financial Statements December 31, 2011 4 - 2 - 1 6/5/2012 Town of Vail, Colorado Financial Statements December 31, 2011 Table of Contents Page Independent Auditor’s Report A1 - A2 Management’s Discussion and Analysis B1 – B7 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets C1 Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 Proprietary Funds: Statement of Net Assets C5 Statement of Revenues, Expenses and Changes in Fund Net Assets C6 Statement of Cash Flows C7 Fiduciary Funds: Statement of Fiduciary Net Assets C8 Statement of Changes in Fiduciary Net Assets C9 Notes to the Financial Statements D1 – D32 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual E1- E2 Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual: Capital Projects Fund E3 Real Estate Transfer Tax Fund E4 Conference Center Fund E5 Vail Marketing Fund E6 Vail Local Marketing District E7 Vail Reinvestment Authority E8 Supplementary Information: Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual F1 Enterprise Funds: Schedule of Revenues, Expenses and Changes in Net Assets – Budget (GAAP Basis) and Actual - Timber Ridge Affordable Housing Corporation F2 Schedule of Revenues, Expenses, and Changes in Net Assets – Budget (Non-GAAP Basis) and Actual - With Reconciliation to GAAP Basis – Dispatch Services Fund F3 Internal Service Funds: Schedule of Revenues, Expenses, and Changes in Net Assets – Budget (Non-GAAP Basis) and Actual - With Reconciliation to GAAP Basis – Heavy Equipment Fund F4 Schedule of Revenues, Expenses and Changes in Net Assets – Budget (GAAP Basis) and Actual - Health Insurance Fund F5 4 - 2 - 2 6/5/2012 Town of Vail, Colorado Financial Statements December 31, 2011 Table of Contents (Continued) Page Supplementary Information (continued): Internal Service Funds (continued): Combining Statement of Net Assets F6 Combining Statement of Revenues, Expenses and Changes in Net Assets F7 Combining Statement of Cash Flows F8 Special Revenue Funds: Schedule of Project Expenditures - Budget (GAAP Basis) and Actual: Capital Projects Fund F9 Real Estate Transfer Tax Fund F10 Local Highway Finance Report F11 – F12 Undertaking to Provide Continuing Disclosure: Table I – Debt Service Coverage G1 Table III – History of Town 4% Sales Tax Receipts G1 Table IV – Monthly Comparison of Collections of Sales Tax G1 Table V – Sales Tax Collections by Principal Sales Tax Generators G2 Table VI – Capital Projects Fund – 2011 Actual / Projected 2012 – 2015 G2 Table XIX – History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 Table XX – General Fund – 2011 Budget and Actual Comparison / 2012 Budget G4 Table XXI – Outstanding Revenue Obligations G4 Single Audit Reports and Schedules: Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards H1 – H2 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 H3 – H4 Schedule of Findings and Questioned Costs H5 Schedule of Prior Audit Findings and Questioned Costs H6 Schedule of Expenditures of Federal Awards H7 4 - 2 - 3 6/5/2012                   !"" #$% &'('' ) *+, -).  #$% &'( '/ !, 0'  1 )!'/2 3( 4            56++7) 5 8) 7)  6,9 )  :69  ) )  1  .+  #$% &'('' #$% &($$2 #$% &22'('/            !"# $"#%# $"#%#                                     !  "#$%      &'()   *            +           +,     -           +         .+/+                             ! 0 .  / +   1                        +   -                     +                                      +               + 2                                                !  &'()                       .+/+        2              3 4()(     *                              +                                     +                             + .+/+        1  3  *&          5       6  *       +/        *        1  0    /   5                                -+ 4 - 2 - 4 6/5/2012                (          3  *&         5    .+/+            1                        *  1  *        7              + -                         -        +      6            *                        *       7  + ,                 *      +           8"                     -     !%   0"* .  7 9 !  &  %             1   *      +   /  6-  8         :          1  .+/+, 3    5 !   ''  " " #$  %&    1   *       +       8  0  / 6-   8                               *      +     8  / 6-  8               *                                       *                      .+/+         +2        8  / 6-  8                       +       *.  7 9 !  &    0            *           -         + ! !"%&'&'' ()%*+(* 4 - 2 - 5 6/5/2012 MANAGEMENT’S DISCUSSION AND ANALYSIS 4 - 2 - 6 6/5/2012 B1 Town of Vail, Colorado Management’s Discussion and Analysis December 31, 2011 As management of the Town of Vail, Colorado (the “Town”), we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended December 31, 2011. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements include three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Financial Highlights: • The assets of the Town exceeded its liabilities at the close of the 2011 fiscal year by $177,874,622 (net assets). Of this amount, $205,647 is restricted for debt service, and $1,618,000 is restricted for TABOR emergency reserves and $30,650,198 is restricted by enabling legislation. • The Town’s total net assets increased in the 2011 fiscal year by $8,261,923 which was attributable to an increase from governmental activities of $8,190,933 and an increase of $70,990 from business- type activities. • At December 31, 2011, the fund balance of the General Fund was $23,546,285. Of that amount, $1,553,000 was restricted for TABOR emergency reserves. Government-wide financial statements: The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances in a manner similar to a private-sector business. The Statement of Net Assets presents information on the Town’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The Statement of Activities presents information showing how the government’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected grant revenues or earned but unused vacation leave.) Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) and those that are supported by external revenues (business-type activities). The governmental activities of the Town include general government, public safety, public works, transportation, and economic development. The business-type activities of the Town consist of housing conducted through Timber Ridge Affordable Housing Corporation (a component unit of the Town), and dispatch services, conducted through Vail Public Safety Communications (an enterprise fund of the Town). The government-wide financial statements include not only the Town itself (known as the primary government), but also a legally separate marketing district (Vail Local Marketing District), a legally separate urban renewal authority (Vail Reinvestment Authority), and a non-profit housing corporation (Timber Ridge Affordable Housing Corporation) for which the Town is financially accountable. Because these component units function for all practical purposes as departments of the Town, their financial position and activities have been included as an integral part of the primary government. The government-wide financial statements can be found on pages C1 and C2 of this report. 4 - 2 - 7 6/5/2012 B2 Overview of the Financial Statements (continued) Fund Financial Statements: A fund is an accounting entity that has a set of self-balancing accounts that records all financial transactions for specific activities or governmental functions. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The Town’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the governments’ near-term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town’s governmental funds include the General Fund, Debt Service Fund, Capital Projects Fund and three Special Revenue Funds – Real Estate Transfer Tax Fund, Vail Marketing Fund and Conference Center Fund – as well as the Vail Local Marketing District and the Vail Reinvestment Authority, which are component units of the Town. The Town adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for all funds to demonstrate compliance with the state budget statute. The basic governmental fund financial statements can be found on pages C3 and C4 of this report. Proprietary Funds: The Town reports two categories of proprietary funds – Internal Service and Enterprise. The Heavy Equipment Fund and Health Insurance Fund are internal service funds, while Timber Ridge Affordable Housing Corporation, which is a component unit and the Dispatch Services Fund are reported as enterprise funds. As their name implies, the internal service funds provide services to the Town’s governmental activities. Timber Ridge Affordable Housing Corporation provides affordable rental housing to people who work in Vail and the Dispatch Services Fund provides dispatch services to emergencies service agencies throughout Eagle County. Enterprise fund functions are presented as business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages C5 through C7 of this report. The Town also presents a budgetary comparison for its proprietary funds. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements, for the Town’s pension plan, can be found on pages C8 and C9 of this report. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Financial Statements can be found on pages D1 through D32 of this report. 4 - 2 - 8 6/5/2012 B3 Overview of the Financial Statements (continued) Government-wide Financial Analysis: As previously mentioned, the government-wide financial statements are designed to provide readers with a broad overview and long-term analysis of the Town’s finances, in a manner similar to a private-sector business. Net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town, governmental assets exceeded liabilities by $176,679,731 at the close of the most recent fiscal year. Approximately 52% of the Town’s net assets are invested in capital assets (land, buildings, equipment), less related outstanding debt. Since the Town uses these capital assets to provide services to citizens, these assets are not available for future spending, including provision of resources to repay the debt. The table below shows the Town’s net assets for 2011 and 2010. Governmental Activities Business-type Activities Total 2011 2010 2011 2010 2011 2010 Current and Other Assets $95,859,946 99,762,195 4,823,293 4,773,278 100,683,239 104,535,473 Capital Assets 106,052,818 96,132,099 16,960,290 16,863,515 123,013,108 112,995,614 Total Assets 201,912,764 195,894,294 21,783,583 21,636,793 223,696,347 217,531,087 Long-term Liabilities Outstanding 12,051,686 14,663,118 19,206,257 19,691,468 31,257,943 34,354,586 Other Liabilities 13,181,347 12,742,378 1,382,435 821,424 14,563,782 13,563,802 Total Liabilities 25,233,033 27,405,496 20,588,692 20,512,892 45,821,725 47,918,388 Net Assets: Invested in capital assets, net of related debt 92,107,267 79,788,340 (1,779,710) (2,326,485) 90,327,557 77,461,855 Restricted 32,473,845 1,753,282 - - 32,473,845 1,753,282 Unrestricted 52,098,619 86,947,176 2,974,601 3,450,386 55,073,220 90,397,562 Total Net Assets $176,679,731 168,488,798 1,194,891 1,123,901 177,874,622 169,612,699 The Town’s current assets from governmental activities decreased mainly due to reduced revenue collections during 2011, specifically property tax, construction permit fees, parking revenue and federal grants. Significant investment in capital assets also occurred during 2011 such as construction of the new LionsHead Transit Center, LionsHead Welcome Center and energy enhancements to town facilities. The Town’s long-term liabilities from governmental activities decreased due to principal payments on outstanding debt. The Town’s 2002B and 2008 Sales Tax Revenue Bonds will be retired in 2012. The Town’s 2010A and 2010B Tax Increment Bonds will be retired in 2018 and 2030, respectively. Long-term liabilities from business activities decreased as a result of a principal payment on the Corporation’s 2003A bonds. The Timber Ridge Affordable Housing 2003A bonds and note payable mature in 2032. Additional information regarding the town’s long-term debt is available on pages D21 – D28 of this report. 4 - 2 - 9 6/5/2012 B4 Overview of the Financial Statements (continued) The chart below provides financial information from the Town’s Statement of Activities for the years 2011 and 2010. 201120102011201020112010 Revenue: Program Revenue Charges for services8,621,386$ 9,952,961$ 3,285,048 3,983,079 11,906,434 13,936,040 Operating grants2,532,499 2,282,534 748,042 750,440 3,280,541 3,032,974 Capital grants2,079,711 4,450,242 - - 2,079,711 4,450,242 General Revenue Property and ownership tax8,412,204 7,329,812 - - 8,412,204 7,329,812 Sales and lodging tax23,334,080 21,468,640 - - 23,334,080 21,468,640 Other taxes9,046,093 11,404,562 - - 9,046,093 11,404,562 Interest and other revenue748,238 375,525 26,594 38,655 774,832 414,180 Total Revenue 54,774,211 57,264,276 4,059,684 4,772,174 58,833,895 62,036,450 Expenses: General government6,535,508 6,619,693 - - 6,535,508 6,619,693 Public safety8,854,261 8,604,466 2,339,404 2,406,428 11,193,665 11,010,894 Public works and transportation20,909,029 20,235,385 - - 20,909,029 20,235,385 Culture and recreation6,579,854 5,944,942 - - 6,579,854 5,944,942 Economic development2,789,722 2,364,570 - - 2,789,722 2,364,570 Housing - - 1,649,290 1,647,885 1,649,290 1,647,885 Interest914,904 249,110 - - 914,904 249,110 Total Expenses 46,583,278 44,018,166 3,988,694 4,054,313 50,571,972 48,072,479 Increase in Net Assets 8,190,933 13,246,110 70,990 717,861 8,261,923 13,963,971 Net Assets January 1 168,488,798 155,242,688 1,123,901 406,040 169,612,699 155,648,728 Net Assets December 31 176,679,731$ 168,488,798 1,194,891 1,123,901 177,874,622 169,612,699 Town of Vail's Changes in Net Assets Total Governmental Activities Business-type Activities Governmental Activities: Governmental activities increased the Town’s net assets by $8,190,933. Key elements of this increase are as follows: • Revenue exceeded expenditures in the General Fund and Capital Projects Fund $659,593 and $1.1 million, respectively. • Capital outlay exceeded depreciation by $9.9 million • Long-term liabilities were reduced by $2.3 million through principal repayments. Business-type Activities: Business-type activities are comprised of: Timber Ridge Affordable Housing Corporation, a component unit of the Town established to provide affordable housing to people working in Vail, and Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. 4 - 2 - 10 6/5/2012 B5 Financial Analysis of the Town’s Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the Town’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $81,674,298 a decrease of $3,954,792 from the prior year’s ending fund balances. The following details ending fund balances for the past five years: Fund 2007 2008 2009 2010 2011 General Fund $ 19,834,717 $ 23,002,886 $ 23,423,417 $ 22,886,692 $ 23,546,285 Capital Projects Fund 12,109,128 10,906,870 13,153,206 19,279,317 20,358,739 Real Estate Transfer Tax 11,769,273 17,288,266 14,216,947 17,681,155 17,285,604 Conference Center Fund 9,046,283 9,264,476 9,324,654 9,365,004 8,915,791 Vail Marketing Fund 62,619 83,635 106,359 138,171 156,543 Vail Local Marketing District 1,006,736 1,026,588 572,930 855,364 1,061,697 Debt Service Fund 252,710 174,334 189,428 194,282 205,647 Vail Reinvestment Authority 314,105 1,333,551 2,637,172 15,229,105 10,143,992 Total $ 54,395,571 $ 63,080,606 $ 63,624,113 $ 85,629,090 $ 81,674,298 The General Fund balance grew steadily until 2010, when reserves were used to cash-fund construction of a new West Vail Fire Station. Sales tax collections in 2011 matched the previous record in 2008. This, along with continued conservative spending contributed to an increase in fund balance this year. The Capital Projects Fund and RETT Fund normally fluctuate as funds are spent on major projects and due to less revenue collections during recent economic challenges. RETT continues to have volatile revenue streams based on the timing of real estate sales from major redevelopment projects which have now been completed. The Capital Projects Fund benefited from increased sales tax during 2011, as well as federal grant funding. The Conference Center Fund was created in 2003 to administer the sales and public accommodations taxes that went into effect on January 1, 2003 for the purpose of building and operating a conference center in the Town. However, the conference center taxes were rescinded as of January 1, 2006 with additional growth in the fund balance due entirely to earnings on investments. In November, 2011 voters approved use of these funds for improvements to Vail’s recreational and cultural facilities. The Vail Reinvestment Authority (VRA) was added in 2004 to administer an urban renewal authority established in the LionsHead area of the town. The incremental property taxes generate an average of $2.5 million per year, providing a funding mechanism for capital improvements within the district by covering debt service payments for $11.9 million in bonds issued in 2010. The bonds will fund several projects including a new transit and welcome center, a remodel of the Vail Library and improvements to both the east and west portals into LionsHead Village. As of December 31, 2011, the transit and welcome centers were nearly complete, with the other projects underway. The bonds are scheduled to be paid off by 2030, when the district will expire. 4 - 2 - 11 6/5/2012 B6 Financial Analysis of the Town’s Funds (continued) Proprietary Funds: The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets for the Heavy Equipment Fund and the Dispatch Services Fund at the end of the year were $2,213,052 and $1,097,230, respectively. The Health Insurance Fund net assets were $954,387, all of which are restricted for the Town’s self-funded health insurance program. Budget Variances in the General Fund: General Fund revenue was higher than the amended budget by $323,788 or 1.1%, including: Ski Area Lift Ticket Admissions Tax up $336,125; Total Permits and Licenses $96,766; and County Sales Tax up $90,924. These revenue items helped to offset a decrease in Parking revenue of $387,560. Expenditures were below budget by $1,577,273 or 5.3%. The majority of the favorable spending variance was primarily due to expense savings in all departments, but also attributable to conservative budgeting. Capital Assets: The Town’s government-wide capital assets, net of accumulated depreciation, increased $9,920,719. Capital additions included the completion of a new fire station at West Vail and a new transit center in LionsHead, a new welcome center at the LionsHead parking structure, replacement of buses, energy enhancements in several town facilities, new bike lanes on frontage roads and various other projects. Additional information as well as a detailed classification of the Town’s net capital assets can be found in the Notes to the Financial Statements in footnote IV.C of this report. Long-term Debt: As of the end of the current fiscal year, the Town had $2,195,000 in sales tax revenue bonds outstanding, the full amount of bond principal due within one year. The Vail Reinvestment Authority had $11,690,000 of tax increment bonds outstanding, of which $445,000 of bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation totaled $17,740,000 of which $475,000 is due within one year. Additional information regarding the Town’s debt can be found in the Notes to the Financial Statements in footnote IV.F of this report. Sales Tax: During 2011, the Town had a 4% general sales tax to support governmental operations, including capital expenditures. The following chart shows changes in the general sales tax for the past five years. 4 - 2 - 12 6/5/2012 B7 Next Year’s Budget and Rates: The Town’s General Fund balance at the end of the current fiscal year was $23,546,285 representing 77% of annual revenue. The town anticipates using $1,076,846 of this fund balance during 2012, mainly to fund one-time special events such as the 2015 World Alpine Ski Championships and Vail’s 50th Anniversary Celebration. Request for information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report should be addressed to the Town of Vail, Finance Director, 75 S. Frontage Road, Vail, CO 81657. 4 - 2 - 13 6/5/2012 GOVERNMENT-WIDE FINANCIAL STATEMENTS 4 - 2 - 14 6/5/2012 Town of Vail, Colorado Statement of Net Assets December 31, 2011 Governmental Business-type Activities Activities Total Assets: Equity in pooled cash and investments70,671,267 1,717,753 72,389,020 Unrestricted cash and investments5,572,253 1,606,583 7,178,836 Cash - restricted 6,578,764 1,083,428 7,662,192 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 4,057,451 - 4,057,451 Other taxes 1,334,827 - 1,334,827 Other governments 313,746 - 313,746 Employees 280 - 280 Other 4,097,743 5,119 4,102,862 Inventory 285,702 - 285,702 Prepaid expenses 94,996 15,948 110,944 Interest receivable 210,468 - 210,468 Loans receivable: Collectible within one year 10,000 - 10,000 Collectible in more than one year2,366,068 - 2,366,068 Bond issue costs, net of accumulated amortization255,557 394,462 650,019 Deferred debt refunding costs 10,824 - 10,824 Property, plant, and equipment, net of accumulated depreciation 106,052,818 16,960,290 123,013,108 Total Assets 201,912,764 21,783,583 223,696,347 Liabilities: Accounts payable 3,024,016 531,954 3,555,970 Due to other governments 9,858 - 9,858 Retainage payable 881,703 - 881,703 Accrued salaries and wages 893,884 64,484 958,368 Interest payable 58,004 213,934 271,938 Deferred property taxes 4,057,451 - 4,057,451 Other deferred revenue 637,386 1,238 638,624 Deposits payable 369,879 68,320 438,199 Debt issuance premium 71,375 - 71,375 Compensated absences: Due within one year 537,791 27,505 565,296 Due in more than one year 806,686 41,257 847,943 Bonds payable: Due within one year 2,640,000 475,000 3,115,000 Due in more than one year11,245,000 17,265,000 28,510,000 Notes payable - 1,900,000 1,900,000 Total Liabilities 25,233,033 20,588,692 45,821,725 Net Assets: Invested in capital assets, net of related debt92,107,267 (1,779,710) 90,327,557 Restricted for: Debt service 205,647 - 205,647 Emergencies 1,618,000 - 1,618,000 Other purposes 30,650,198 - 30,650,198 Unrestricted:52,098,619 2,974,601 55,073,220 Total Net Assets 176,679,731 1,194,891 177,874,622 The accompanying notes are an integral part of these financial statements. C1 4 - 2 - 15 6/5/2012 Town of Vail, Colorado Statement of Activies For the Year Ended December 31, 2011 Net (Expense) Revenue and Program Revenues Changes in Net Assets OperatingCapital Charges forGrants andGrants andGovernmentalBusiness-type ExpensesServicesContributionsContributionsActivitiesActivitiesTotal Governmental Activities: General Government:6,535,508 3,556,852 - - (2,978,656) (2,978,656) Public Safety8,854,261 428,310 229,372 - (8,196,579) (8,196,579) Public Works & Transportation20,909,029 4,158,700 2,098,898 1,473,667 (13,177,764) (13,177,764) Culture & Recreation6,579,854 145,420 204,229 411,879 (5,818,327) (5,818,327) Economic Development2,789,722 332,104 - 194,165 (2,263,452) (2,263,452) Interest on long-term debt914,904 - - - (914,904) (914,904) Total Governmental Activities:46,583,278 8,621,386 2,532,499 2,079,711 (33,349,682) (33,349,682) Business-type Activities: Dispatch services2,339,404 1,752,753 748,042 - 161,391 161,391 Housing (Timber Ridge)1,649,290 1,532,295 - - (116,995) (116,995) Total Business-type Activities:3,988,694 3,285,048 748,042 - 44,396 44,396 Total 50,571,972 11,906,434 3,280,541 2,079,711 (33,349,682) 44,396 (33,305,286) General Revenues: Taxes: Sales and use taxes21,188,092 - 21,188,092 Real estate transfer taxes4,403,706 - 4,403,706 Lodging taxes 2,145,988 - 2,145,988 Property and specific ownership taxes8,412,204 - 8,412,204 Ski area lift ticket admissions tax3,529,125 - 3,529,125 Franchise taxes 1,039,185 - 1,039,185 Cigarette taxes 74,077 - 74,077 Investment earnings 594,879 16,997 611,876 Gain (loss) on sale of capital assets(384,705) - (384,705) Miscellaneous 538,064 9,597 547,661 Total General Revenues and Transfers 41,540,615 26,594 41,567,209 Change in Net Assets 8,190,933 70,990 8,261,923 Net Assets - January 1 168,488,798 1,123,901 169,612,699 Net Assets - December 31 176,679,731 1,194,891 177,874,622 The accompanying notes are an integral part of these financial statements. C2 4 - 2 - 16 6/5/2012 FUND FINANCIAL STATEMENTS 4 - 2 - 17 6/5/2012 CapitalReal EstateConferenceVailVail LocalVailDebt Total GeneralProjectsTransfer TaxCenterMarketingMarketing ReinvestmentServiceGovernmental FundFundFundFundFundDistrictAuthorityFundFunds Assets: Equity in pooled cash and investments23,646,607 17,239,257 17,508,157 8,915,791 156,543 - - 205,647 67,672,002 Cash and cash equivalents - Unrestricted10,160 - - - - 757,114 4,804,979 5,572,253 Cash and cash equivalents - Restricted- - - - - - 5,968,742 - 5,968,742 Receivables, net of allowance for uncollectible accounts: Property taxes assessed4,057,451 - - - - - - - 4,057,451 Other taxes 750,366 - 180,638 - - 403,823 - - 1,334,827 Other governments 105,049 47,494 161,203 - - - - - 313,746 Employees 280 - - - - - - - 280 Other 374,008 3,477,040 16,762 - - - - - 3,867,810 Due from other funds - 625,196 - - - - - - 625,196 Loans receivable 466,068 1,910,000 - - - - - - 2,376,068 Prepaid expenses 1,619 93,377 - - - - - - 94,996 Total Assets 29,411,608 23,392,364 17,866,760 8,915,791 156,543 1,160,937 10,773,721 205,647 91,883,371 Liabilities and Fund Equity: Liabilities: Accounts payable 412,948 1,730,829 532,364 - - 99,240 - - 2,775,381 Due to other governments5,325 - - - - - 4,533 - 9,858 Due to other funds - - - - - - 625,196 - 625,196 Retainage payable - 856,764 24,939 - - - - - 881,703 Accrued payroll and related liabilities825,579 2,787 23,854 - - - - - 852,220 Deferred revenue 194,141 443,245 - - - - - - 637,386 Deferred property taxes not collectible until subsequent year4,057,451 - - - - - - - 4,057,451 Deposits payable 369,879 - - - - - - - 369,879 Total Liabilities 5,865,323 3,033,625 581,157 - - 99,240 629,729 - 10,209,074 Fund Balances: Non-spendable 467,687 2,003,377 - - - - - - 2,471,064 Restricted 1,670,010 - 17,285,604 8,915,791 156,543 65,000 4,175,250 205,647 32,473,845 Committed 7,859,980 14,263,034 - - - 996,697 - - 23,119,712 Assigned - 4,092,328 - - - - 5,968,742 - 10,061,070 Unassigned 13,548,607 - - - - - - - 13,548,607 Total Fund Balances 23,546,285 20,358,739 17,285,604 8,915,791 156,543 1,061,697 10,143,992 205,647 81,674,298 Total Liabilities and Fund Balances 29,411,608 23,392,364 17,866,760 8,915,791 156,543 1,160,937 10,773,721 205,647 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.102,615,556 Other long-term assets and deferred charges are not available for current period expenditures and, therefore, are not reported in the funds.1,086,871 Internal service funds are used by management to charge the costs of heavy equipment and health insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets.6,604,701 Long-term liabilities, including bonds payable, interest payable, and compensated absences within governmental activities are not due and payable in the current period and, therefore, are not reported in the funds.(15,301,696) Net Assets of Governmental Activities 176,679,731 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2011 The accompanying notes are an integral part of these financial statements. C3 4 - 2 - 18 6/5/2012 CapitalReal EstateConferenceVailVail LocalVailDebt Total GeneralProjectsTransfer TaxCenterMarketingMarketingReinvestmentServiceGovernmental FundFundFundFundFundDistrictAuthorityFundFunds Revenues: Taxes 20,493,034 9,677,254 4,403,706 - - 2,145,988 3,366,594 - 40,086,576 Permits and licenses1,136,966 - - - 332,104 - - - 1,469,070 Intergovernmental revenue2,066,191 1,205,465 184,029 - - - - - 3,455,685 Charges for services6,147,729 205,193 136,508 - - - - - 6,489,430 Investment income189,591 111,166 126,562 65,787 1,874 857 35,873 12,973 544,683 Interest Subsidy - - - - - - 194,165 - 194,165 Miscellaneous 477,102 1,264,862 429,255 - - - - - 2,171,219 Total Revenues 30,510,613 12,463,940 5,280,060 65,787 333,978 2,146,845 3,596,633 12,973 54,410,829 Expenditures: General government6,001,080 - - - - - - 500 6,001,580 Public safety 7,898,115 - 92,067 - - - - - 7,990,182 Public works and transportation11,362,070 18,127,736 4,360,230 - - - - - 33,850,036 Culture and recreation2,743,955 - 1,705,350 - - - - - 4,449,305 Economic development- - - - 315,606 1,940,512 629,875 - 2,885,993 Debt service: Principal - - - - - - 250,000 2,115,000 2,365,000 Interest - - - - - - 676,675 165,682 842,357 Total Expenditures 28,005,220 18,127,736 6,157,647 - 315,606 1,940,512 1,556,550 2,281,182 58,384,453 Excess (Deficiency) of Revenues Over Expenditures 2,505,393 (5,663,796) (877,587) 65,787 18,372 206,333 2,040,083 (2,268,209) (3,973,624) Other Financing Sources (Uses): Sale of assets - 18,832 - - - - - - 18,832 Transfers in - 9,003,960 515,000 - - - - 2,279,574 11,798,534 Transfers (out)(1,845,800) (2,279,574) (32,964) (515,000) - - (7,125,196) - (11,798,534) Total Other Financing Sources (Uses)(1,845,800) 6,743,218 482,036 (515,000) - - (7,125,196) 2,279,574 18,832 Net Change in Fund Balances 659,593 1,079,422 (395,552) (449,213) 18,372 206,333 (5,085,113) 11,365 (3,954,792) Fund Balances - January 1 22,886,692 19,279,317 17,681,155 9,365,004 138,171 855,364 15,229,105 194,282 85,629,090 Fund Balances - December 31 23,546,285 20,358,739 17,285,604 8,915,791 156,543 1,061,697 10,143,992 205,647 81,674,298 Net Change in Fund Balances of Governmental Funds (3,954,792) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense, net of disposals for the year.9,918,676 Internal service funds are used by management to charge the cost of heavy equipment and health insurance to individual funds. This is the amount of internal service fund change in net assets for the year.(127,596) Repayment of bond and lease principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. This is the amount of principal repayments.2,365,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.95,951 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (106,306) Change in Net Assets of Governmental Activities 8,190,933 Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2011 The accompanying notes are in integral part of these financial statements. C4 4 - 2 - 19 6/5/2012 Enterprise Fund -Enterprise Fund -Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 1,717,753 1,717,753 2,999,265 Cash and cash equivalents - Unrestricted1,606,583 - 1,606,583 - Accounts receivable , net of allowance for uncollectibles4,757 362 5,119 229,933 Inventory - - - 285,702 Prepaid expenses 15,948 - 15,948 - Total Current Assets 1,627,288 1,718,115 3,345,403 3,514,900 Non-current Assets: Cash and cash equivalents - Restricted1,083,428 - 1,083,428 - Bond issue costs, net of accumulated amortization 394,462 - 394,462 - Property, plant, and equipment, net of accumulated depreciation 15,680,484 1,279,806 16,960,290 3,437,262 Total Non-current Assets 17,158,374 1,279,806 18,438,180 3,437,262 Total Assets 18,785,662 2,997,921 21,783,583 6,952,162 Liabilities: Current Liabilities: Accounts payable 44,314 487,640 531,954 248,635 Tenant security deposits 68,320 - 68,320 - Deferred revenue 1,238 - 1,238 - Accrued interest payable 213,934 - 213,934 - Accrued salaries and wages - 64,484 64,484 41,664 Current portion of bonds payable475,000 - 475,000 - Current portion of compensated absences- 27,505 27,505 22,864 Total Current Liabilities 802,806 579,629 1,382,435 313,163 Non-current Liabilities: Bonds payable, net of current portion17,265,000 - 17,265,000 - Notes payable 1,900,000 - 1,900,000 - Compensated absences, net of current portion- 41,257 41,257 34,298 Total Non-current Liabilities 19,165,000 41,257 19,206,257 34,298 Total Liabilities 19,967,806 620,886 20,588,692 347,461 Net Assets (Deficit): Invested in capital assets, net of related debt(3,059,516) 1,279,806 (1,779,710) 3,437,262 Unrestricted 1,877,371 1,097,230 2,974,601 3,167,439 Total Net Assets (Deficit)(1,182,145) 2,377,036 1,194,891 6,604,701 Town of Vail, Colorado Proprietary Funds Statement of Net Assets December 31, 2011 Business-type Activities The accompanying notes are an integral part of these financial statements. C5 4 - 2 - 20 6/5/2012 Enterprise Fund -Enterprise Fund -Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Operating Revenues: Charges for services - Internal - 537,827 537,827 5,403,915 Charges for services - External - 1,214,926 1,214,926 408,081 Rent 1,520,426 - 1,520,426 - Laundry room lease 11,869 - 11,869 - Insurance reimbursements - - - 624,437 Other 9,508 89 9,597 39,765 Total Operating Revenues 1,541,803 1,752,842 3,294,645 6,476,198 Operating Expenses: Operations 759,692 2,123,490 2,883,182 2,381,418 Health claims and premiums - - - 3,742,665 Depreciation 519,974 215,914 735,888 602,354 Total Operating Expenses 1,279,666 2,339,404 3,619,070 6,726,437 Operating Income (Loss)262,137 (586,562) (324,425) (250,239) Non-Operating Revenues (Expenses): Intergovernmental revenues - 748,042 748,042 - Gain (loss) on disposal of assets - - - 100,946 Investment income 7,106 9,891 16,997 21,697 Interest expense (70,573) - (70,573) - Financing fees (262,459) - (262,459) - Amortization of bond issue costs (36,592) - (36,592) - Total Non-Operating Revenues (Expenses)(362,518)757,933395,415122,643 Change in Net Assets (100,381) 171,371 70,990 (127,596) Net Assets (Deficit) - January 1 (1,081,764) 2,205,6651,123,901 6,732,297 Net Assets (Deficit) - December 31 (1,182,145) 2,377,036 1,194,891 6,604,701 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2011 Business-type Activities The accompanying notes are an integral part of these financial statements. C6 4 - 2 - 21 6/5/2012 Enterprise Fund -Enterprise Fund -Governmental Timber RidgeDispatch Activities - Affordable HousingServices Internal CorporationFundTOTALService Funds Cash Flows From Operating Activities: Cash received from other funds - 537,827 537,827 5,403,915 Cash received from tenants for rent 1,531,662 - 1,531,662 - Cash received from (refunded to) tenants for security deposits, net54,328 - 54,328 - Other cash receipts 19,212 1,215,015 1,234,227 993,688 Cash paid for goods and services (764,306) (431,377) (1,195,683) (5,348,579) Cash paid to employees - (1,711,623) (1,711,623) (957,069) Net Cash Provided (Used) by Operating Activities 840,896 (390,158) 450,738 91,955 Cash Flows From Non-Capital Financing Activities: Cash received from operating grants - 748,042 748,042 - Net Cash Provided by Non-Capital Financing Activities - 748,042 748,042 - Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets - - - 106,494 Principal repaid on bonds and notes (450,000) - (450,000) - Cash drawn on line of credit 42,884 - 42,884 - Repayments of amounts drawn on line of credit (42,884) - (42,884) - Interest paid (42,884) - (42,884) - Financing fees paid (262,233) - (262,233) - Bond Issuance costs paid (3,500) - (3,500) - Acquisition and construction of capital assets (95,822) (256,520) (352,342) (609,946) Net Cash (Used) by Capital and Related Financing Activities (854,439) (256,520) (1,110,959) (503,452) Cash Flows From Investing Activities: Interest on investments 7,106 9,891 16,997 21,697 Net Cash Provided by Investing Activities 7,106 9,891 16,997 21,697 Net Increase (Decrease) in Cash and Cash Equivalents (6,437) 111,255 104,818 (389,800) Cash and Cash Equivalents - Beginning 2,696,448 1,606,498 4,302,946 3,389,065 Cash and Cash Equivalents - Ending 2,690,011 1,717,753 4,407,764 2,999,265 Cash and Cash Equivalents - End of Period is Comprised of: Equity in pooled cash and investments - 1,717,753 1,717,753 2,999,265 Cash and cash equivalents - Unrestricted 1,606,583 - 1,606,583 - Cash and cash equivalents - Restricted 1,083,428 - 1,083,428 - Total - Cash and Cash Equivalents 2,690,011 1,717,753 4,407,764 2,999,265 Reconciliation of Operating (Loss) to Net Cash Provided by Operating Activities: Operating Income/(Loss)262,137 (586,562) (324,425) (250,239) Adjustments: Depreciation 519,974 215,914 735,888 602,354 (Increase) decrease in accounts receivable 9,051 12,393 21,444 (78,594) (Increase) decrease in inventory - - - 26,315 (Increase) decrease in prepaid expenses 40 - 40 - Increase (decrease) in accounts payable (4,654) (8,731) (13,385) (212,895) Increase (decrease) in other liabilities 54,348 - 54,348 - Increase (decreases) in accrued wages and benefits - (23,172) (23,172) 5,014 Total Adjustments 578,759 196,404 775,163 342,194 Net Cash Provided (Used) by Operating Activities 840,896 (390,158) 450,738 91,955 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2011 Business-type Activities The accompanying notes are an integral part of these financial statements. C7 4 - 2 - 22 6/5/2012 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted42,268,165 8,674,592 Loans to participants460,573 - Total Assets 42,728,738 8,674,592 Net Assets: Held in trust for pension benefits and other purposes 42,728,738 8,674,592 Total Net Assets 42,728,738 8,674,592 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Assets December 31, 2011 The accompanying notes are an integral part of these financial statements. C8 4 - 2 - 23 6/5/2012 Deferred Pension Compensation Trust Plan Additions: Contributions 2,891,855 816,620 Investment Income / (Loss)(230,287) (43,941) Total Additions 2,661,568 772,679 Deductions: Professional fees 75,481 60 Benefits paid 2,437,620 368,102 Total Deductions 2,513,101 368,162 Change in Net Assets 148,467 404,517 Net Assets - January 1 42,580,271 8,270,075 Net Assets - December 31 42,728,738 8,674,592 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Assets For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements C9 4 - 2 - 24 6/5/2012 NOTES TO THE FINANCIAL STATEMENTS 4 - 2 - 25 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 D1 I. Summary of Significant Accounting Policies The Town of Vail, Colorado (the “Town”) was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under a Council-Manager form of government. The Town’s major operations include public safety, public works and transportation, culture and recreation, economic development, administration (general government), and housing. The Town’s financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”). The Governmental Accounting Standards Board (“GASB”) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). Governments are also required to follow the pronouncements of the Financial Accounting Standards Board (“FASB”) issued through November 30, 1989, when applicable, that do not conflict with or contradict GASB pronouncements. The more significant accounting policies established by GAAP used by the Town are discussed below. A. Reporting Entity The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Town is financially accountable. The Town is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. Consideration is also given to other organizations which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. The accompanying financial statements present the primary government and its component units; entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town’s operations. There are three blended component units reported in the Town’s financial statements: Vail Local Marketing District (the “District”), Timber Ridge Affordable Housing Corporation (the “Corporation”) and Vail Reinvestment Authority (the “Authority”). The financial statements of theses entities can be obtained from the Town’s administrative offices. A fourth blended component unit, the Town of Vail General Improvement District No. 1, is a dormant entity and, therefore, has no financial statements to report. 1. Vail Local Marketing District The District was authorized on November 2, 1999 by a general election that established a 1.4% tax on lodging within the Town’s boundaries, beginning January 1, 2000. Proceeds from the tax are to be used for organization, management, promotion, and marketing of public events, for business recruitment, and for tourism promotion. Town Council members also act as the District’s Board of Directors. The District is reported as a special revenue fund. 4 - 2 - 26 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D2 I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation The Corporation was incorporated on July 9, 2003 as a Colorado non-profit corporation to provide affordable housing for persons employed in the Town or Eagle County, Colorado. The Corporation owns and operates, exclusively on behalf of and for the benefit of the Town, a 198-unit rental housing project (the “Project”) located in the Town. The formation of the Corporation was approved by the Town, and its operations are governed by a Board of Directors comprised, as of March 2005, of members of the Town’s management team. Previously, the Board was comprised solely of members of the Town Council. Upon dissolution of the Corporation and retirement of all liabilities, all property of the Corporation is to be transferred to the Town. The acquisition of the Project was financed through the issuance of revenue bonds and a note payable to the Town. While the Town is not legally obligated to pay the indebtedness of the Corporation, the Town has agreed to consider providing funds, if needed, to the Corporation to make the scheduled debt service payments of the Corporation. The Town has a right to obtain title to the Project at any time by defeasing all outstanding bonds of the Corporation. The Corporation is reported as an enterprise fund. The Corporation’s total expenses exceeded revenues by $100,381 for 2011. This adds to the Corporation’s $1,081,764 deficit net assets balance through December 31, 2010. The net asset deficit totals $1,182,145 as of December 31, 2011. Since the inception of operations, the Corporation incurred mold remediation costs totaling $1,417,292, of which the majority of expenses were incurred prior to 2007. As of January 2007, all 198 units at the Project had been renovated. In addition to limitations on the Corporation’s revenue base, the Corporation has substantial long-term debt obligations. As detailed in Note IV.G.1., a significant portion of the Corporation’s bonds currently bears a variable weekly interest rate. Short-term interest rates have fluctuated since the issuance of these bonds. The Corporation’s Rate Protection Agreement outlined in Note V. F. below, has limited the Corporation’s effective interest rate on the 2003A Bonds to 5.5% per annum. While short-term interest rates have stabilized below the current rate cap threshold, any significant increase in rates could have an adverse impact on the Corporation’s cash flow. At the time of purchase, the Town advanced the Corporation $1,000,000 of the purchase price of the property. During 2005 and 2006, the Corporation was advanced $700,000 and $200,000 respectively, by the Town. This additional funding helped improve the Corporation’s year-end liquidity position. There have been no additional advances from the Town. In 2007, the Board commissioned an engineering study and began a capital maintenance and replacement program using over $500,000 from the Replacement Reserve Fund for major improvements to the property. 4 - 2 - 27 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D3 I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 3. Vail Reinvestment Authority The Authority was created on November 4, 2003 pursuant to the Colorado Urban Renewal Law (C.R.S. 31-25-1) to oversee development and redevelopment of identified blighted areas within the Town. The Town Council approved the formation of the Authority at a public hearing, and filed applicable certification of compliance with the Division of Local Government. Its operations are governed by a Board of Commissioners comprised solely of members of the Town Council. The Authority is reported as a special revenue fund. 4. Town of Vail General Improvement District No. 1 On October 3, 2006, the Town Council accepted a petition requesting formation of the Town of Vail Public Improvement District No. 1. The District is a public, or quasi- municipal subdivision of the state of Colorado and a body corporate with the powers set forth in Part 6, Article 25, Title 31 of the Colorado Revised Statutes. The Town Council is the ex officio Board of Directors of the District. Services provided by the District include (a) programming, regulating, and generally administering public functions to be conducted on the public plaza which will be constructed as part of the Solaris redevelopment project and (b) maintaining the plaza to the extent that the Solaris Metropolitan District fails to do so. At a special election on November 7, 2006, the eligible electors of the District authorized imposition of a mill levy of not more than fifteen mills in any year for the purpose of funding the administration, operation, and maintenance of the District’s facilities should the Solaris Metropolitan District fail to do so. As of December 31, 2011, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. B. Government-wide and Fund Financial Statements The Town’s basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town’s major funds). Government- wide financial statements report on information of all of the non-fiduciary activities of the Town and its component units. Both the government-wide and fund financial statements categorize primary activities as either governmental or business-type. The Town’s public safety, public works and transportation, culture and recreation, economic development, and administration functions are classified as governmental activities. The Corporation and emergency dispatch services of the Town are classified as business-type activities. The government-wide Statement of Activities reports both the gross and net cost of each of the Town’s governmental functions and business-type activities. The governmental functions are also supported by general government revenues (sales taxes, property and specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the governmental function or a business- type activity. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. 4 - 2 - 28 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D4 I. Summary of Significant Accounting Policies (continued) B. Government-wide and Fund Financial Statements (continued) The government-wide focus is on the sustainability of the Town as an entity and the change in the Town’s net assets resulting from the current year’s activities. C. Fund Financial Statements The financial transactions of the Town are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures/expenses. The fund focus is on current available resources and budget compliance. The Town reports the following major governmental funds: The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. Resources restricted within this fund relate to TABOR reserve requirements (see Note III.E) and Police Confiscation funds. The Capital Projects Fund accounts for and reports financial resources that are restricted by outside parties (i.e., a portion of the Town’s sales tax as well as restricted intergovernmental grants and awards received) as well as amounts committed by Council for expenditures of capital outlay, including the acquisition or construction of capital facilities and other capital assets. It excludes those types of capital-related cash outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments. Real Estate Transfer Tax Fund is used to account for the collection of a real estate transfer tax which is specifically restricted per Town ordinance for acquiring, maintaining, and improving real property for parks, recreation, open space and for supporting sustainable environmental practices. The Conference Center Fund was established to account for the collection of a sales tax and public accommodations tax which were specifically restricted for the financing of the construction and operations of a conference center in the Town. The conference center taxes were rescinded by election in November 2005. Voters elected in November 2011, to authorize use of the funds for specific capital projects including the clubhouse at the Vail golf course and Nordic center, the Ford Park athletic fields, and improvements to the Gerald R. Ford amphitheater. The Vail Marketing Fund accounts for the collection of business license fees which are specifically restricted for expenditures related to the marketing of the Town. The Vail Local Marketing District accounts for collection of lodging taxes, which are restricted for use for the activities of the District. 4 - 2 - 29 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D5 I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements (continued) The Vail Reinvestment Authority accounts for the collection of Tax Increment Financing revenues which are restricted for use for the activities of the Authority. The Debt Service Fund accounts for resources that are restricted to expenditure for principal and interest that have been legally mandated, as well as the accumulation for resources for, and the payment of, long-term obligation debt principal, interest, and related costs. The Town reports the following major proprietary or business-type funds: Timber Ridge Affordable Housing Corporation accounts for the activities of the Corporation. The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. Additionally, the Town reports the following fund types: Internal service funds account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. In addition, internal service funds are used to account for the health insurance plan provided to Town employees. Trust funds are used to account for the accumulation of resources for pension benefit payments to qualified Town employees and to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. No budget is adopted for the Town’s trust funds. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long-term resources (long-term economic focus). Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1. Long-term Economic Focus and Accrual Basis Both governmental and business-type activities in the government-wide financial statements and the proprietary and fiduciary fund financial statements use the long- term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. 4 - 2 - 30 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D6 I. Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 2. Current Financial Focus and Modified Accrual Basis The governmental fund financial statements use the current financial focus and are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. The Town considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year- end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures when due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. 3. Financial Statement Presentation As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments where the amounts are reasonably equivalent to the value of the interfund services provided and other charges between the various functions of the Town. Elimination of these charges would distort the direct costs and program revenues are reported. Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the Town’s enterprise funds are rents from individuals employed in the Town and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. E. Financial Statement Accounts 1. Equity in Pooled Cash and Investments The Town has a policy of central cash management whereby cash balances of each of the Town’s funds are pooled in and invested in certain investments for all funds except the Pension Trust Fund and the Deferred Compensation Plan Fund. Additionally, the component units do not participate in the Town’s central cash management. Equity in pooled cash and investments include demand deposits, short-term investments with original maturities of three months or less from the date of acquisition, and long-term investments in U.S. government obligations. Investments are stated at fair market value. 4 - 2 - 31 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D7 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 2. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. Cash equivalents are both readily convertible to cash and are so near their maturity they present insignificant risk of change in value due to interest rate changes. Restricted cash and cash equivalents represent certain proceeds of debt issuances, as well as certain resources set aside for their repayments because their use is limited by the applicable covenants. Restricted assets also include certain deposits that have been limited as to usage pursuant to escrow and similar agreements. 3. Receivables Receivables are reported net of an allowance for uncollectible accounts. Loans receivable in governmental funds consist principally of housing loans that are generally not expected or scheduled to be collected in the subsequent year, although payment has started on several of the loans. 4. Property Taxes Property taxes are assessed in one year as a lien on the property, but not collected by the governmental unit until the subsequent year. In accordance with GAAP, the assessed but uncollected property taxes have been recorded as a receivable and as deferred revenue. 5. Inventory Inventory is valued at cost using the first-in / first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 6. Prepaid Items Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. 7. Debt Issuance Costs Issuance costs for long-term bonds and debt payable are recorded and amortized over the term to maturity of the debt, using the straight-line method for governmental activities. The Corporation and the Authority use the bonds outstanding method, which approximates the effective interest method, to amortize these costs. 4 - 2 - 32 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D8 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 8. Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as “due from other funds” or “due to other funds” on the balance sheet when they are expected to be liquidated within one year. Any residual balances outstanding between the governmental activities and business- type activities are reported in the government-wide financial statements as “internal balances”. If the receivable or payable is not expected to be liquidated after one year, it is classified as “advances to other funds” or “advances from other funds”. 9. Capital Assets Capital assets, which include land, buildings, improvements, equipment, vehicles and infrastructure assets, are reported in the applicable governmental or business- type activity columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at cost where historical records are available and at an estimated historical cost where no historical record exists. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Capital outlay for projects is capitalized as projects are constructed. Costs related to the construction of assets include interest, engineering, legal, surveying and landscaping that were incurred from the beginning of construction until the assets were substantially complete are capitalized. Capital assets (excluding land and art) are depreciated using the straight-line method, over the estimated useful life. 10. Bond Premiums and Discounts Bonds payable are reported net of the applicable bond premium or discount. No amortization was taken on these premiums or discounts in the first year. These premiums and discounts are amortized over the life of the applicable bonds using the bond outstanding method. 11. Deferred Revenue For governmental funds, deferred revenues arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. For proprietary funds, deferred revenues arise when potential revenue is unearned. 4 - 2 - 33 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D9 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 11. Deferred Revenue (continued) In subsequent periods, when revenue recognition criteria are met, or when the Town has legal claim to the resources, the liability for deferred revenue is removed and revenue is recognized. 12. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government-wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. After the completion of ten years of full-time service, employees are eligible for a cash or gift benefit. The estimated liability for all eligible employees is recorded in governmental activities in the Statement of Net Assets, as a component of compensated absences. 13. Fund Equity Governmental accounting standards establish fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications include Non-spendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of the funds, but also provide clarity to the level of restriction placed upon fund balance. Fund balance can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further details of the various fund balance classifications refer to Note IV.L. F. Significant Accounting Policies 1. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 4 - 2 - 34 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D10 I. Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies (continued) 2. Proprietary Funds As required by GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, the Town has elected to follow for its proprietary funds, all (1) GASB pronouncements and (2) FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins issued on or before November 30, 1989, except those that conflict with a GASB pronouncement. 3. Credit Risk The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. 4. Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. 5. Subsequent Event Management has evaluated subsequent events through the date of the independent audit report which is the date these financial statements were available to be released. II. Reconciliation of Government-wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets The governmental fund Balance Sheet includes reconciliation between the fund balance of total governmental funds and net assets of governmental activities as reported in the government-wide Statement of Net Assets. One element of that reconciliation explains "Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds”. This $102,615,556 difference is related to property, plant and equipment of $249,519,766 less accumulated depreciation of $146,904,210. Another element of that reconciliation explains “Other long-term assets and deferred charges are not available for current period expenditures and therefore are not reported in the funds”. This $1,086,871 difference is bond issue costs of $500,356, less accumulated amortization of $244,799, pension forfeitures of $610,022, deferred debt refunding cost of $10,824 and interest receivable of $210,468. Net assets totaling $6,604,701 of internal service funds used by management to charge the costs of heavy equipment and health insurance to individual funds are included in the governmental activities in the Statement of Net Assets. Additionally, the reconciliation states that long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. This $15,301,696 difference is related to bonds and notes payable of $13,885,000, accrued compensated absences of $1,287,317, premium on issued debt of $71,375 and interest payable of $58,004. 4 - 2 - 35 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D11 II. Reconciliation of Government-wide and Fund Financial Statements (continued) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes reconciliation between net change in fund balances of governmental funds and changes in net assets of governmental activities as reported in the government- wide Statement of Activities. One element of that reconciliation explains “Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.” The details of this $9,918,676 difference are comprised of capital outlay of $20,470,773 less depreciation expense of $10,047,614 and a loss on the sale of assets of $504,483. III. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town’s Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund and Dispatch Services Fund. As required by Colorado Statutes, all funds have legally adopted budgets and appropriations. The total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if unanticipated revenues offset them. All appropriations lapse at year-end. The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: HeavyDispatch EquipmentServices FundFund Change in Net Assets - Budget Basis17,809$ (366,573)$ add/(less): Change in compensated absences(2,715) 17,017 Capitalized assets 609,946 736,841 Depreciation (602,354) (215,914) Net book value of disposed assets(5,548) - Change in Net Assets - GAAP Basis 17,138$ 171,371$ The Town followed these procedures in preparing, approving, and enacting its budget for 2011. (1) For the 2011 budget year, prior to August 25, 2010, the County Assessor sent the Town a certified assessed valuation of all taxable property within the Town’s boundaries. (2) Prior to the end of the 2010 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. 4 - 2 - 36 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D12 III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) (3) Prior to December 15, 2010, the Town computed and certified to the County Commissioners a levy rate that derived the necessary property taxes as computed in the proposed budget. (4) After a required publication of “Notice of Proposed Budget”, the Town adopted the proposed budget and an appropriation ordinance which legally appropriated expenditures for the upcoming year. (5) After adoption of the budget ordinance, the Town may make the following changes: a) transfer appropriated money between funds; b) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; c) approve emergency appropriations; and d) reduce appropriations for which originally estimated revenues are insufficient. Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2010 were collected in 2011 and taxes certified in 2011 will be collected in 2012. Taxes are due on January 1 in the year of collection; however, they may be paid in either one installment (no later than April 30) or two equal installments (not later than February 28 and June 15) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1%) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. B. Budgetary Information – Vail Local Marketing District The District’s budget timetable varies from the Town’s. The District followed these procedures in preparing, approving, and enacting its budget for 2011. (1) On or before September 30, 2010, the District must submit to the Board a recommended budget that details the revenues necessary to meet the District's operating requirements. This was done on September 21, 2010. (2) After appropriate public notice and a required public hearing, the Board must adopt the proposed budget and a resolution that legally appropriated expenditures for the upcoming year on or before December 5, 2010. The Board adopted the 2011 budget on November 2, 2010. (3) After adoption of the initial budget resolution, the District may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. 4 - 2 - 37 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D13 III. Stewardship, Compliance, and Accountability (continued) C. Deficit Net Assets - Timber Ridge Affordable Housing Corporation The Corporation had a deficit of net assets at December 31, 2011 of $1,182,145. D. Compliance with Trust Indentures - Timber Ridge Affordable Housing Corporation The bond indenture for the Corporation’s Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the “2003A Bonds”), establishes initial funding of a bond reserve fund at $317,094 and required additional funding during 2004. At December 31, 2011 the Corporation’s balance in the Bond Reserve Fund was in compliance with the Bond Reserve Requirement of $595,157 established by the 2003A Indenture. As described in Note IV.K., the Reimbursement Agreement with U.S. Bank requires the Corporation to fund a Replacement Reserve in 2003 and annually thereafter. For 2011, the minimum funding required for the Replacement Reserve was met by the Corporation. The 2003A Indenture imposes financial ratios relating to debt service coverage. At December 31, 2011, the Corporation was in violation of the debt service coverage ratio due to a reduction in Net Operating Income, as defined by the Indenture. E. TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights (“TABOR”). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, or salary or fringe benefit increases. The reserve is calculated at 3% of fiscal year spending for fiscal years ending after December 31, 1995. Fiscal year spending excludes bonded debt service and enterprise spending. The Town has reserved a portion of the December 31, 2011 fund balance in the General Fund for this purpose in the amount of $1,553,000 which is the approximate required reserve. The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. 4 - 2 - 38 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D14 III. Stewardship, Compliance, and Accountability (continued) E. TABOR Amendment (continued) On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town’s electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are: • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town debt; • No increase or imposition of a new real estate transfer tax; and, • All election requirements remain in effect. The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. F. TABOR Amendment – Vail Local Marketing District As required by TABOR, the District has reserved $65,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2011. The ballot question approved by voters on November 2, 1999, which established the 1.4% tax on lodging within the Town’s boundaries also authorized the District to collect and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The District’s management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions will require judicial interpretation. IV. Detailed Notes on all Funds A. Cash and Investments Pursuant to its charter, the Town has adopted, by ordinance, an investment policy governing the types of institutions and investments with which it may deposit funds and transact business. Under this policy, the Town may invest in federally insured banks, debt obligations of the U.S. Government, its agencies and instrumentalities, governmental mutual funds and pools including 2a7-like pools, and repurchase agreements subject to policy requirements. The Town also accounts for the operations of the employees' pension plans that are administered by select employees acting as trustees who are governed by a trust agreement. The trust agreement gives the trustees considerable latitude with investment alternatives. As a result, all pension investments are considered legal under the trust agreement. 4 - 2 - 39 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D15 IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) The Town’s deposits and certificates of deposit are entirely covered by federal depository insurance (FDIC) or by collateral held under Colorado Public Deposit Protection Act (“PDPA”). The FDIC insures the first $250,000 of the Town’s interest bearing deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. As of year end, the bank balance of the Town’s deposits was $13,471,187. The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2011. At year end, the Town had the following investments and maturities: Carrying Type Rating Maturities Value Deposits: Cash on hand 10,160$ Demand deposits 24,044,205 Certificates of deposit <1 year2,769,077 Certificates of deposit <5 years6,753,424 Total deposits 33,576,866$ Investments: US Agencies - FHLMC, FHLB, FNMAAA+<5 years12,951,684$ Mortgage pools AA+N/A4,836,315 Colotrust AAAmN/A35,254,632 Pension and Section 457 investmentsN/AN/A51,553,308 Total investments 104,595,939 Total deposits and investments 138,172,805$ Reconciliation to Statement of Net Assets: Equity in pooled cash and investments 72,389,020$ Cash and cash equivalents - Unrestricted 7,178,836 Cash and cash equivalents - Restricted 7,662,192 Fiduciary Funds 50,942,757 Total 138,172,805$ Pools. The Town has invested in the Colorado Government Liquid Asset Trust (“Colotrust”), which is an investment vehicle established for local government entities in Colorado to pool surplus funds. They operate similarly to a money market fund and each share is equal in value to $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor’s. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk. The Town’s general investment policy is to apply the prudent-person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. 4 - 2 - 40 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D16 IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) Concentration of Credit Risk. The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments are as follows at year end: Investment Type Rating Percentage ColotrustAAAm41% Investments in the Deferred Compensation Plan and the Pension Trust Funds are held by trustees and are not categorized because they are not evidenced by specific securities that exist in physical or book form. B. Receivables Receivables as of year-end for the Town’s funds, including applicable allowances for uncollectible accounts, are as follows: CapitalReal EstateVailVail Local GeneralProjectsTransferMarketingMarketing FundFundTax FundFundDistrict Receivables: Property taxes4,057,451$ - - - - Other taxes750,366 - 180,638 - 403,823 Other governments105,049 47,494 161,203 - - Employees 280 - - - - Other375,008 3,477,040 16,762 - - Gross Receivables5,288,154 3,524,534 358,603 - 403,823 Less: Allowance for uncollectibles(1,000) - - - - Net Receivables 5,287,154$ 3,524,534 358,603 - 403,823 VailHeavy Rein-Equip-DispatchHealth TimbervestmentmentServicesInsurance RidgeAuthorityFundFundFundTotal Receivables: Property taxes-$ - - - - 4,057,451 Other taxes- - - - - 1,334,827 Other governments- - - - - 313,746 Employees - - - - - 280 Other4,757 - 4,935 362 224,998 4,103,862 Gross Receivables4,757 - 4,935 362 224,998 9,810,166 Less: Allowance for uncollectibles- - - - - (1,000) Net Receivables 4,757$ - 4,935 362 224,998 9,809,166 4 - 2 - 41 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D17 IV. Detailed Notes on all Funds (continued) B. Receivables (continued) Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Total deferred revenue for governmental activities totaled $4,694,837 and is comprised of the following: GeneralCapital Project FundFund Property taxes assessed but not collectible until 2012:4,057,451$ -$ Other deferred revenues: Business licenses94,906 - Library grants65,037 - Police programs34,198 - Construction projects - 443,245 4,251,592$ 443,245$ Deferred revenue for construction projects relates to $274,445 of funds collected from Holy Cross Energy for the community enhancement fund which is used to place utilities underground. The other $168,800 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. 4 - 2 - 42 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D18 IV. Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the year ended December 31, 2011 was as follows: Beginning Ending BalanceIncreasesDecreasesBalance Governmental Activities: Capital Assets, Not Being Depreciated: Land 28,572,851$ 280,000 - 28,852,851 Total Capital Assets, Not Being Depreciated28,572,851 280,000 - 28,852,851 Capital Assets, Being Depreciated: Buildings and improvements80,889,831 10,371,280 (501,104) 90,760,007 Infrastructure and improvements104,431,495 6,677,125 (1,213,426) 109,895,194 Equipment and vehicles 28,586,810 3,752,314 (2,401,588) 29,937,536 Total Capital Assets Being Depreciated213,908,136 20,800,719 (4,116,118) 230,592,737 Less Accumulated Depreciation For: Buildings and improvements(52,832,627) (3,019,566) 420,471 (55,431,722) Infrastructure and improvements(76,021,517) (5,071,279) 789,575 (80,303,221) Equipment and vehicles(17,494,744) (2,559,122) 2,396,039 (17,657,827) Total Accumulated Depreciation(146,348,888) (10,649,967) 3,606,085 (153,392,770) Total Capital Assets Being Depreciated, Net67,559,248 10,150,752 (510,033) 77,199,967 Governmental Activities Capital Assets, Net 96,132,099$ 10,430,752 (510,033) 106,052,818 Business-type Activities Capital Assets, Not Being Depreciated: Land 4,399,500$ - - 4,399,500 Total Capital Assets, Not Being Depreciated4,399,500 - - 4,399,500 Capital Assets, Being Depreciated: Buildings and improvements15,592,145 81,677 - 15,673,822 Equipment 2,474,901 750,986 - 3,225,887 Total Capital Assets Being Depreciated18,067,046 832,663 - 18,899,709 Less Accumulated Depreciation For: Buildings and improvements(3,879,963) (519,974) - (4,399,937) Equipment (1,723,068) (215,914) - (1,938,982) Total Accumulated Depreciation(5,603,031) (735,888) - (6,338,919) Total Capital Assets Being Depreciated, Net12,464,015 96,775 - 12,560,790 Business-type Activities Capital Assets, Net 16,863,515$ 96,775 - 16,960,290 4 - 2 - 43 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D19 IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Depreciation on fixed assets is recorded using the following estimated useful lives: Years Buildings 25 - 40 Building improvements 7 - 25 Infrastructure 5 - 30 Vehicles 5 - 15 Equipment 5 - 10 At December 31, 2011, the Town had $27,132,763 of fully depreciated assets. D. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. For accounting purposes, these leases are considered to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial statements. E. Interfund Receivables, Payables, and Transfers At December 21, 2011, the Vail Reinvestment Authority owed the Capital Projects Fund $625,16 in connection with the LionsHead Transit Center construction. During 2011, $1,845,800 was transferred from the General Fund to the Capital Projects Fund, used for the implementation of energy enhancements to Town facilities. Another $32,964 was transferred from the Real Estate Transfer Tax Fund to the Capital Projects Fund for the same project. The Capital Projects Fund transferred $2,279,574 to the Debt Service Fund for annual debt service payments. The Vail Reinvestment Authority transferred $7,125,196 to the Capital Projects Fund for construction of the LionsHead Transit Center, LionsHead Welcome Center, East and West Portals into LionsHead, and a renovation of the Vail Library. Governmental Activities: General government 455,711$ Public safety 382,304 Public works and transportation 8,497,616 Culture and recreation 1,314,336 Total Depreciation Expense - Governmental Activities 10,649,967$ Business-type Activities: Dispatch services 215,914$ Housing 519,974 Total Depreciation - Business-type Activities 735,888$ 4 - 2 - 44 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D20 IV. Detailed Notes on all Funds (continued) E. Interfund Receivables, Payables, and Transfers (continued) The Conference Center Fund transferred $515,000 to the Real Estate Transfer Tax Fund to begin work on the Golf Clubhouse reconstruction and Ford Park Field improvements. F. Long-term Liabilities - Governmental Activities The Town has the following long-term debt outstanding for governmental activities: 1. Sales Tax Revenue Refunding Bonds, Series 2002B The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1, 2002 (the “2002B Bonds”). Proceeds from the 2002B Bonds were used to refund outstanding 1992 bonds. The interest rate on the 2002B Bonds ranges from 2.5% to 4.0% per annum, and is payable on June 1 and December 1 annually through December 1, 2012. The 2002B Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 2002B Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues. 2002B Bonds maturing on or before December 1, 2011 are not subject to prior redemption. 2002B Bonds maturing on or after June 1, 2012 are subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2011 or thereafter, at a redemption price equal to the principal amount redeemed, plus a redemption premium equal to 1% of the principal redeemed, plus accrued interest to the redemption date. 2. Sales Tax Revenue Refunding Bonds, Series 2008 The Town issued $6,320,000 of Sales Tax Revenue Refunding Bonds dated December 1, 2008 (the “2008 Bonds”). Proceeds from the 2008 Bonds were used to refund outstanding 1998A bonds. The interest rate on the 2008 Bonds ranges from 3.5% to 4.0% per annum, and is payable on June 1 and December 1 annually through December 1, 2012. The 2008 Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 2008 Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues. The 2008 Bonds are not subject to redemption prior to maturity at the option of the Town. 4 - 2 - 45 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D21 IV. Detailed Notes on all Funds (continued) F. Long-term Liabilities - Governmental Activities (continued) 3. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A The Authority issued $3,670,000 of Tax-Exempt Tax Increment Revenue Bonds dated November 4, 2010 (the “2010A Bonds”). Proceeds from the 2010A Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010A Bonds ranges from 2.5% to 4% per annum, and is payable June 1 and December 1 annually through June 1, 2018. The 2010A Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged property tax revenues. 2010A Bonds are not subject to redemption prior to maturity at the option of the Authority. 4. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B The Authority issued $8,270,000 of Taxable Tax Increment Revenue Bonds (Direct Pay Build America Bonds) dated November 4, 2010 (the “2010B Bonds”). Proceeds from the 2010B Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010B Bonds ranges from 5.269% to 6.659% per annum, and is payable June 1 and December 1 annually from June 1, 2011 through June 1, 2030. Principal payments are payable June 1 and December 1 annually from June 1, 2019 through June 1, 2030. The Authority will receive a federal subsidy known as the “BAB Credit” equal to 35% of corresponding interest as provided under the American Recovery and Reinvestment Act of 2009. The 2010B Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged incremental property tax revenues. 2010B Bonds maturing on or before June 1, 2020 are not subject to optional redemption prior to their respective maturity dates. The 2010B Bonds maturing on and after June 1, 2021 are subject to redemption prior to their respective maturity dates at the option of the Authority at a price equal to the principal amount plus accrued interest to the redemption date without a premium. All 2010B Bonds are subject to mandatory sinking fund redemption. 4 - 2 - 46 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D22 IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities - Business-type Activities The Town has the following long-term debt outstanding for business-type activities: 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A The 2003A Bonds were issued July 15, 2003 in the principal amount of $19,025,000 as limited obligations of the Corporation and not indebtedness of the Town. The 2003A Bonds are payable solely from the rents and other receipts from operation of the Project, net of the Project’s actual operating expenses (the “Pledged Revenues”) and the various reserve funds and other monies pledged under the terms of the 2003A indenture. Certain capitalized terms are further described in the 2003A indenture. The 2003A Bonds bear interest at the Weekly Rate established by George K. Baum & Company (the “Remarketing Agent”) until converted to another “mode”, including a Fixed Rate, by the Corporation. While in any interest rate mode other than a Fixed Rate, the 2003A Bonds are subject to repurchase upon demand by any bondholder at 100% of the outstanding principal amount plus accrued interest. All tendered bonds are then to be subsequently remarketed by the Remarketing Agent. The 2003A Bonds are subject to redemption prior to maturity (December 1, 2032 or specific maturity date, if converted to Fixed Rate) at the Corporation’s option, using monies in the Redemption Fund, as follows: • 2003A Bonds in a Daily Mode or Weekly Mode - on any date prior to Maturity at 100% of the principal amount, plus accrued interest. • 2003A Bonds in a Commercial Long-Term Mode - after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No-Call Period Redemption Price Greater than 12 years10 years from the Rate101%, declining 0.5% per Change Date6 months to 100% Greater than 4 years, butUntil 2 years prior to the 100% less than 12 yearsend of the Rate Period Less than or equal toLength of the Rate PeriodNot subject to optional 4 years redemption 4 - 2 - 47 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D23 IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities - Business-type Activities (continued) 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) • 2003A bearing a Fixed Rate - after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No-Call Period Redemption Price Greater than 12 years10 years from the101%, declining 0.5% per Conversion Date6 months to 100% Greater than 4 years, butUntil 2 years prior to100% less than 12 yearsMaturity Less than or equal toTerm to MaturityNot subject to optional 4 years redemption From the date of issuance through December 31, 2011, the 2003A Bonds have been in Weekly Mode, with interest rates set by the Remarketing Agent. Interest rates on the 2003A Bonds ranged from 0.19% to .29% per annum in 2011. At December 31, 2011, the interest rate on the 2003A Bonds was 0.23% per annum; however, the Corporation’s effective interest rate has been limited to 4% through August 1, 2006 and 5.5% thereafter, as provided by the Rate Protection Agreement discussed in Note IV. K. Total interest expense for 2011 incurred in respect of the 2003A Bonds was $42,073. 2. Promissory Note - Town of Vail (the “Town Notes”) In connection with the Corporation’s purchase of the Project, the Town advanced $1,000,000 to the Corporation upon execution of a promissory note. During 2005 and 2006, the Town made additional advances of $700,000 and $200,000, respectively, to the Corporation upon execution of additional promissory notes. At December 31, 2011, the balance outstanding under the terms of these promissory notes (collectively, the “Town Notes”) was $1,900,000. The Town Notes, which bear interest at the rate of 1.5% per annum, mature December 1, 2032. The Town Notes are payable solely from the Pledged Revenues, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds. 4 - 2 - 48 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D24 IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities - Business-type Activities (continued) 2. Promissory Note - Town of Vail (the “Town Notes”) (continued) The Town Notes are payable to the extent that the Corporation has determined that excess net revenues of the Project, after provision for necessary operating or capital reserves, have accumulated semi-annually on the business day following debt service on the 2003B Bonds. The Town Notes may be repaid by the Corporation at any time without penalty. In the event that a shortfall arises in the Bond Reserve Funds (as defined in the 2003A Indenture) for the 2003A Bonds which is not cured within the prescribed deadlines by the Corporation, U.S. Bank National Association (the “Trustee”) will request that the Town replenish the deficient Bond Reserve Fund, and the Town has agreed to consider such requests but is not obligated to do so. Any funds advanced by the Town to replenish Bond Reserve Funds will be considered additional loans by the Town, subject to the same terms as the original Town Notes. The Town’s failure to replenish any deficiency in the Bond Reserve Funds will not constitute an Event of Default (as defined in the 2003A Indenture) for the 2003A Bonds. The Corporation incurred interest expense totaling $28,500 during 2011 in respect of the Town Notes. At December 31, 2011, the Corporation had accrued a total of $210,468 in interest payable to the Town under the terms of the Town Notes. H. Long-term Liabilities - Compensated Absences The Town has a policy allowing the accumulation of paid vacation and sick leave, subject to certain maximum limits. In accordance with GAAP, the Town’s approximate liability for vacation pay earned by employees and longevity pay at December 31, 2011 has been reflected in the proprietary type fund financial statements and in the governmental activities column of the government-wide financial statements. Accumulated sick pay of approximately $3,058,893 at December 31, 2011 has not been reflected in the Town’s financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I. Long-term Liabilities – Refunded In prior years, the town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the town until retired; however, they are not included for the purposes of calculating debt limits of the town. The amount of debt considered defeased cannot be readily determined as of December 31, 2011. 4 - 2 - 49 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D25 IV. Detailed Notes on all Funds (continued) J. Long-term Liabilities - Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2011 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Tax-Exempt Refunding Bonds, Series 20083,260,000$ - (1,600,000) 1,660,000 1,660,000 Deferred amounts: Issuance premium62,413 - (41,355) 21,058 - Cost of refunding(32,081) - 21,257 (10,824) - Refunding Bonds, Series 2002B1,050,000 - (515,000) 535,000 535,000 Tax-Increment Bonds, Series 2010A3,670,000 - (250,000) 3,420,000 445,000 Tax-Increment Bonds, Series 2010B8,270,000 - - 8,270,000 - Deferred amounts: Issuance premium63,427 - (13,110) 50,317 - Compensated absences1,296,864 47,613 - 1,344,477 537,791 Total Governmental Activities Long-term Liabilities 17,640,623$ 47,613$ (2,398,208)$ 15,290,028$ 3,177,791$ Business-type Activities: Housing Facilities Revenue Bonds: Adjustable Rate, Series 2003A18,190,000$ - (450,000) 17,740,000 475,000 Promissory note1,900,000 - - 1,900,000 - Compensated absences85,780 - (17,018) 68,762 27,505 Total Business-type Activities Long-term Liabilities 20,175,780$ - (467,018) 19,708,762 502,505 4 - 2 - 50 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D26 IV. Detailed Notes on all Funds (continued) J. Long-term Liabilities - Activity and Debt Service Schedules (continued) Debt service requirements at December 31, 2011 were as follows: Governmental Activities: 20122,640,000$ 701,053 3,341,053 2013460,000 605,203 1,065,203 2014475,000 591,178 1,066,178 2015490,000 577,928 1,067,928 2016500,000 564,928 1,064,928 2017-20212,775,000 2,486,058 5,261,058 2022-20263,335,000 1,609,971 4,944,971 2027-20303,210,000 439,161 3,649,161 Total Governmental Activities 13,885,000$ 7,575,480 21,460,480 Business-type Activities: 2012475,000$ 42,481 517,481 2013500,000 41,336 541,336 2014530,000 40,130 570,130 2015560,000 38,852 598,852 2016585,000 37,503 622,503 2017-20213,445,000 164,731 3,609,731 2022-20264,475,000 118,481 4,593,481 2027-20315,815,000 58,417 5,873,417 20323,255,000 601,481 3,856,481 Total Business-type Activities 19,640,000$ 1,143,412 20,783,412 General obligation bonds issued for governmental activity purposes are liquidated by the Debt Service Fund, whereas general obligation bonds issued for component unit purposes are liquidated by the component unit. Included in debt service requirements for business-type activities above are principal and interest payments due to the Town in the amounts of $1,900,000 and $598,500 respectively. K. Credit Facility and Reimbursement Agreement - Timber Ridge Affordable Housing Corporation Certain capitalized terms are defined in the 2003A Bonds Indenture. In connection with the issuance of the 2003A Bonds, an irrevocable, stand-by, direct pay letter of credit (the “Credit Facility”) in the amount of $19,207,432 was established July 17, 2003 by U.S. Bank, National Association (“U.S. Bank”) in favor of the Trustee for the 2003A Bonds. Under the terms of the Credit Facility, up to $19,025,000 may be drawn to pay principal amounts of the 2003A Bonds, and up to $182,432 may be drawn to pay up to 35 days’ accrued interest on the 2003A Bonds at a maximum rate of 10% per annum. Available credit under the Credit Facility will be permanently and proportionately reduced upon notice from the Trustee of redemption of less than all of the 2003A Bonds. 4 - 2 - 51 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D27 IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement – Timber Ridge Affordable Housing Corporation (continued) The Credit Facility expires at the earlier of: a. July 17, 2008, although it automatically renews for successive one-year terms (unless U.S. Bank notifies the Trustee that the Credit Facility has not been renewed); b. 15 days following notice by U.S. Bank requiring payment of all outstanding 2003A Bonds due to Default; c. The date of acceleration or redemption of all 2003A Bonds; d. The second business day after conversion of the 2003A Bonds to a Fixed Mode interest rate; or e. The date of surrender of the Credit Facility for cancellation, as required by the Indenture. Concurrent with the Credit Facility, the Corporation executed a Reimbursement Agreement and a Demand Note in favor of U.S. Bank, evidencing the Corporation’s obligation to repay all advances under the Credit Facility, together with interest on all such draws. All amounts drawn on or charged against the Credit Facility bear interest at the Bank Rate, which is equal to U.S. Bank’s Prime Rate plus 200 Basis Points. The Credit Facility automatically renews each year, subject to the Corporation’s compliance with requirements as to operational performance of the Corporation, provision of certain records to the Trustee, and payment of all fees (including annual stand-by fees equal to 125 Basis Points calculated on the original credit commitment, plus U.S. Bank’s standard fees and charges for processing draws on the Credit Facility). Pursuant to this arrangement, the Corporation incurred financing fees during 2011 totaling $232,970 for U.S. Bank in respect of stand-by fees for the Credit Facility. During 2003, U.S. Bank was paid a one-time origination fee of $192,074 from the proceeds on issuance of the 2003A Bonds, which has been capitalized as Bond Issue Costs. During 2011, the Corporation drew and repaid $42,884 of advances on the Credit Facility. At December 31, 2011, no balance was outstanding on the Credit Facility. The Reimbursement Agreement imposes the following funding commitments on the Corporation: a. Commencing January 1, 2009, the Corporation is to deposit into the Bond Principal Fund an amount equal to 1/12th of the scheduled principal reductions for the 2003A Bonds, to be used by the Trustee to pay for optional redemptions as provided in the 2003A Indenture. b. $90,000 was paid from the proceeds of issuance of the 2003A Bonds into a Replacement Reserve account. Annually thereafter, the Corporation is to deposit an equal amount increased by 3% per annum into the Replacement Reserve account, with usage of such funds restricted to capital improvements to the Project approved by U.S. Bank. The Replacement Reserve Account is pledged to U.S. Bank and not the owners of the 2003A Bonds. c. The Corporation is required to deposit all security deposits received from tenants of the Project into a separate account. d. Commencing August 1, 2004 and annually thereafter, the Corporation is to deposit into a Rate Cap Escrow Account an amount not less than $45,000, to be used only to pay for required rate protection agreements. For the year ended December 31, 2011, the Corporation received a one year waiver from U.S. Bank of this funding requirement. 4 - 2 - 52 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D28 IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement - Timber Ridge Affordable Housing Corporation (continued) As required by the Reimbursement Agreement and for as long as the Credit Facility is outstanding, the Corporation is required to have in effect a rate protection agreement at a fixed interest rate acceptable to U.S. Bank in an amount equal to the then-outstanding principal amount of the Credit Facility, with a floating rate payer acceptable to U.S. Bank. The Corporation’s rate protection agreement is subsequently described. L. Fund Balance Disclosures The Town classifies governmental fund balances as follows: Non-spendable – includes fund balance amounts inherently non-spendable since they represent inventories, prepaid items, and long-term portions of loans receivable. Spendable Fund Balance: Restricted – includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Committed – includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority, which is the Town Council. The Town’s original budget legislation begins with combining historical data, assessment of needs for the upcoming year and the Town’s platform to review, and/or make changes to each department’s budget. The budget is formally presented to the Town Council via an advertised public process for review, revisions and final approval by year-end. All subsequent budget requests made during the year, after Town Council approval, must be presented via a public process and again approved by Town Council. Assigned – includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. Fund balance may be assigned by Town Council or its management designees. Unassigned – includes residual positive fund balance within the General Fund, which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. The Town’s restricted amounts are to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents or contracts that prohibit this, such as grant agreements that require dollar for dollar spending. Additionally, the Town would first use committed, then assigned, and lastly unassigned amounts when expenditures are made. The Town has a minimum fund balance policy of 25% of annual General Fund revenues. 4 - 2 - 53 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D29 V. Other Information A. Pension Plans The Town offers two defined contribution pension plans to cover all permanent paid employees of the Town. The Town established these qualified money purchase pension plans under Internal Revenue Code section 401(a), and may amend all of the plan provisions. The first plan covers all full time and qualified seasonal employees other than sworn police officers and firefighters; the second plan covers all full time and qualified seasonal employees of the Town’s Police and Fire departments. The plan provisions are the same for both plans. In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long-term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100%. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100%. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2011 of $42,268,165 are stated at market value. All earnings, losses, expenses and changes in the fair market value of the trust fund will be apportioned at least annually among the participants in proportion to each participant's current share of the Trust Investment Fund. The Town has no liability for unfunded future vested employee benefits. The trustees and administrators of the plans are the Retirement Board. The Retirement Board determines investment options made available to participants, in adherence with an adopted investment policy statement. The total amount of the Town’s 2011 covered payroll was $14,920,230 of which $12,818,461 was for permanent employees and $2,101,769 was for seasonal staff. Total 2011 payroll for all Town employees was $16,130,474 4 - 2 - 54 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D30 V. Other Information (continued) B. Retirement Savings Plan - Deferred Compensation Plan - IRC 457 The Town offers its employees a deferred compensation plan (the “457 Plan”) created in accordance with Internal Revenue Code section 457. The 457 Plan, available to all Town employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. The modified accrual basis of accounting is used for the 457 Plan. The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town’s administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. The total assets of the 457 Plan were $8,674,592 at December 31, 2011. The assets were invested in mutual funds, as previously described. Pursuant to the Town’s adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D. Risk Management The Town is exposed to various risks of loss related to workers compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. E. Commitments and Contingencies 1. Legal Claims During the normal course of business, the Town may incur claims and other assertions against it from various agencies and individuals. Management of the Town and their legal representatives feel none of these claims or assertions are significant enough that they would materially affect the fairness of the presentation of the financial statements at December 31, 2011. 4 - 2 - 55 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D31 V. Other Information (continued) E. Commitments and Contingencies (continued) 2. Federal Funds Funds received from Federal grants and programs are subject to audit and disallowance on ineligible costs. Management of the Town feels any potential questioned or disallowed costs would not materially affect the fairness of the presentation of the financial statements at December 31, 2011. F. Rate Protection Agreement - Timber Ridge Affordable Housing Corporation In connection with the issuance of the 2003A Bonds and as required by the Reimbursement Agreement, the Corporation entered into rate protection agreements which limit the Corporation’s interest payable on the 2003A Bonds for specific periods. Fees paid by the Corporation under these arrangements have been capitalized as Bond Issue Costs. Effective April 30, 2008, the Corporation’s existing Rate Protection Agreement with SMBC Derivative Products Limited (“SMBC”) was revised in that SMBC agreed to limit the Corporation’s interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2010. SMBC was paid a fee of $14,650 in 2008 for this service, which has been capitalized as Bond Issue Costs. Effective May 5, 2010, the Corporation entered into a Rate Protection Agreement with U.S. Bank National Association (“U.S. Bank”) whereby U.S. Bank agreed to limit the Corporation’s interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2011. During 2010, U.S. Bank was paid a $4,000 fee for its services under the Rate Protection Agreement, which has been capitalized as Bond Issue Costs. Effective May 5, 2011, the Corporation entered into a Rate Protection Agreement with U.S. Bank National Association (“U.S. Bank”) whereby U.S. Bank agreed to limit the Corporation’s interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2012. During 2011, U.S. Bank was paid a $3,500 fee for its services under the Rate Protection Agreement, which has been capitalized as Bond Issue Costs. During 2011 and 2010, the Corporation did not receive a reimbursement under the rate protection agreement, as the Corporation’s interest rate payable on the 2003A Bonds was less than 5.5% per annum. G. Related Party Transactions - Vail Local Marketing District The District has executed a Coordination Agreement with Vail Valley Partnership (“VVP”) under which VVP provides some marketing coordination services to the District in return for a fixed fee. The District paid VVP $40,000 for its services in 2011. The Coordination Agreement also requires the District to pay a fixed fee to the Town for accounting services and marketing coordination provided by the Town. Fees totaling $20,000 for accounting services and $85,000 for marketing coordination were incurred by the District during 2011 from the Town. 4 - 2 - 56 6/5/2012 Town of Vail, Colorado Notes to the Financial Statements December 31, 2011 (Continued) D32 V. Other Information (continued) H. Conduit Debt - Town of Vail, Colorado Multifamily Housing Revenue Bonds (Middle Creek Village Apartments Project), Series 2003A, 2003B and 2003-T These bonds were issued in 2003 in an aggregate principal amount of $16,850,000 to finance construction of multi-family housing projects within the Town. The bonds mature in 2038. The bonds are solely payable from, and are secured by, a pledge of revenue from loan agreements between the Town and Middle Creek Village, LLC (as borrower). The borrower’s obligation is secured by Deeds of Trust, Security Agreements, Financing Statements and assignment of rents and leases. The bonds are a special limited obligation of the Town, payable solely from the specified revenues of the projects, and do not constitute debt or indebtedness of the Town. 4 - 2 - 57 6/5/2012 REQUIRED SUPPLEMENTARY INFORMATION 4 - 2 - 58 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: General sales taxes10,310,000 10,859,000 10,859,000 - 10,143,624 Property and ownership taxes5,055,000 5,055,000 5,031,770 (23,230) 4,951,386 Ski area lift ticket admissions tax3,193,000 3,193,000 3,529,125 336,125 3,357,717 Franchise tax1,045,965 1,045,965 1,039,185 (6,780) 1,023,398 Penalties and interest on delinquent taxes41,438 41,438 33,954 (7,484) 17,027 Total - Taxes 19,645,403 20,194,403 20,493,034 298,631 19,493,152 Permits and Licenses: Construction fees673,250 923,250 985,377 62,127 1,272,606 Contractors' licenses15,000 73,000 76,015 3,015 34,983 Other permits and licenses43,950 43,950 75,574 31,624 79,748 Total - Permits and Licenses 732,200 1,040,200 1,136,966 96,766 1,387,337 Intergovernmental: County sales tax540,800 540,800 631,724 90,924 546,335 County road and bridge500,000 860,000 862,559 2,559 851,934 Additional motor vehicle registration fees24,000 24,000 23,939 (61) 25,300 Cigarette tax 80,000 80,000 74,077 (5,923) 72,745 Highway users tax180,000 180,000 214,409 34,409 215,036 State health inspection8,240 8,240 10,379 2,139 11,787 Other state sources - 3,090 19,732 16,642 10,758 Federal sources191,025 191,025 229,372 38,347 195,226 Total - Intergovernmental 1,524,065 1,887,155 2,066,191 179,036 1,929,121 Charges for Services: Management fees - Vail Local Marketing District95,000 95,000 105,000 10,000 105,000 Internal service charge376,900 357,900 381,797 23,897 496,555 Out of district fire response30,000 130,192 137,248 7,056 36,798 Alarm monitoring fees30,000 30,000 25,487 (4,513) 28,127 Parking 4,911,500 4,411,500 4,023,940 (387,560) 5,037,042 Fines and forfeitures305,000 305,000 265,575 (39,425) 271,561 Rents 869,816 869,816 895,872 26,056 862,151 Other charges, services, and sales171,062 296,562 312,810 16,248 209,147 Total - Charges for Services 6,789,278 6,495,970 6,147,729 (348,241) 7,046,381 Other Revenues: Earnings on investments194,000194,000189,591 (4,409) 119,049 Other 161,658 375,097 477,102 102,005 386,271 Total - Other Revenues 355,658 569,097 666,693 97,596 505,320 Total Revenues 29,046,604 30,186,825 30,510,613 323,788 30,361,311 2011 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 With Comparative Totals For the Year Ended December 31, 2010 The accompanying notes are an integral part of these financial statements. E1 4 - 2 - 59 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Expenditures: General Government: Town officials 1,295,8601,435,657 1,279,098 156,559 1,162,640 Administrative 3,306,5653,369,444 3,227,937 141,507 3,043,095 Community development1,644,7651,731,933 1,494,045 237,888 1,722,407 Total - General Government 6,247,190 6,537,034 6,001,080 535,954 5,928,142 Public Safety: Police department 5,128,9775,234,856 4,817,088 417,768 4,802,283 Fire department 2,981,1363,094,891 3,081,027 13,864 2,817,132 Total - Public Safety 8,110,113 8,329,747 7,898,115 431,632 7,619,415 Public Works and Transportation: Highways and streets3,553,226 3,613,940 3,465,263 148,677 3,530,332 Transportation 3,664,297 3,803,571 3,736,484 67,087 3,569,718 Parking operations 997,430 1,075,694 1,001,388 74,306 925,925 Facility maintenance3,574,519 3,460,189 3,158,935 301,254 3,178,278 Total - Public Works and Transportation 11,789,472 11,953,394 11,362,070 591,324 11,204,253 Culture and Recreation: Contributions, marketing and special events1,533,256 1,800,158 1,795,886 4,272 1,471,156 Special recreation facilities158,800 158,800 165,512 (6,712) 137,518 Library 800,579 803,360 782,557 20,803 794,879 Total - Culture and Recreation 2,492,635 2,762,318 2,743,955 18,363 2,403,553 Total Expenditures 28,639,410 29,582,493 28,005,220 1,577,273 27,155,363 Excess of Revenues Over Expenditures 407,194 604,332 2,505,393 1,901,061 3,205,948 Other Financing Sources (Uses): Transfers out - (1,845,800) (1,845,800) - (3,742,673) Total Other Financing Sources (Uses)- (1,845,800) (1,845,800) - (3,742,673) Net Change in Fund Balances 407,194 (1,241,468) 659,593 1,901,061 (536,725) Fund Balances - January 1 20,340,414 22,886,692 22,886,692 - 23,423,417 Fund Balances - December 31 20,747,608 21,645,224 23,546,285 1,901,061 22,886,692 (Continued) 2011 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 With Comparative Totals For the Year Ended December 31, 2010 The accompanying notes are an integral part of these financial statements. E2 4 - 2 - 60 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: Sales tax 6,590,000 6,941,000 8,956,252 2,015,252 7,712,020 Construction use tax500,000 731,000 721,002 (9,998) 1,103,118 Total - Taxes 7,090,000 7,672,000 9,677,254 2,005,254 8,815,138 Intergovernmental: State grants - 10,000 - (10,000) - Federal grants1,428,000 2,176,364 1,205,465 (970,899) 3,576,818 Total - Intergovernmental 1,428,000 2,186,364 1,205,465 (980,899) 3,576,818 Charges for Services: Leases - Vail Commons184,500 184,500 192,710 8,210 183,170 Resale fees - - 12,483 12,483 27,398 Total - Charges for Services 184,500 184,500 205,193 20,693 210,568 Other: Interest on investments - - 111,166 111,166 60,377 Project reimbursements/shared costs- 1,086,163 1,015,645 (70,518) 782,522 Construction fees - 250,000 249,217 (783) 831,764 Workforce housing sales and other- - - - 816,631 Total - Other - 1,336,163 1,376,028 39,865 2,491,294 Total Revenues 8,702,500 11,379,027 12,463,940 1,084,913 15,093,818 Expenditures: Public Works: Capital projects and acquisition15,510,259 28,932,777 18,127,736 10,805,041 11,507,388 Excess (Deficiency) of Revenues Over Expenditures (6,807,759) (17,553,750) (5,663,796) 11,889,954 3,586,430 Other Financing Sources (Uses): Sale of assets - - 18,832 18,832 600 Transfers in 8,520,319 11,457,834 9,003,960 (2,453,874) 4,813,038 Transfers (out)(2,279,572) (2,279,572) (2,279,574) (2) (2,273,957) Total Other Financing Sources (Uses)6,240,747 9,178,262 6,743,218 (2,435,044) 2,539,681 Net Change in Fund Balances (567,012) (8,375,488) 1,079,422 9,454,910 6,126,111 Fund Balances - January 1 6,842,351 19,279,317 19,279,317 - 13,153,206 Fund Balances - December 31 6,275,339 10,903,829 20,358,739 9,454,910 19,279,317 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E3 4 - 2 - 61 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: Real estate transfer tax4,670,000 4,270,000 4,403,706 133,706 6,950,702 Intergovernmental Revenue: Lottery revenue 20,000 20,000 22,826 2,826 21,724 Other county revenue - - - - 6,324 Other State revenue - 161,000 161,203 203 5,379 Other Federal grants - - - - 13,100 Total - Intergovernmental Revenue 20,000 181,000 184,029 3,029 46,527 Charges for Services: Recreation amenities fee10,000 10,000 9,740 (260) 39,181 Land lease to Vail Recreation District124,400 124,400 126,768 2,368 126,768 Total - Charges for Services 134,400 134,400 136,508 2,108 165,949 Other: Project reimbursements - 442,950 406,329 (36,621) 72,902 Donations - - 20,200 20,200 33,075 Interest on investments15,879 15,879 126,562 110,683 81,801 Other - 2,038 2,726 688 8,506 Total - Other 15,879 460,867 555,817 94,950 196,284 Total Revenues 4,840,279 5,046,267 5,280,060 233,793 7,359,462 Expenditures: Culture and Recreation: Project management 233,500 213,500 220,185 (6,685) 347,534 Park maintenance 1,317,340 1,307,126 1,229,538 77,588 1,198,869 Environmental sustainability250,000 207,975 174,605 33,370 178,431 Art in public places 89,371 90,390 81,022 9,368 94,072 Public Works: Capital projects 7,489,383 11,793,637 4,360,230 7,433,407 1,870,194 Public Safety Fire suppression 145,000 145,000 92,067 52,933 206,154 Total Expenditures 9,524,594 13,757,628 6,157,647 7,599,981 3,895,254 Excess (Deficiency) of Revenues Over Expenditures (4,684,315) (8,711,361) (877,587) 7,833,774 3,464,208 Other Financing Sources (Uses): Transfers in - 515,000 515,000 - - Transfers (out)- (32,964) (32,964) - - Total Other Financing Sources (Uses)- 482,036 482,036 - - Net Change in Fund Balances (4,684,315) (8,229,325) (395,551) 7,833,774 3,464,208 Fund Balances - January 1 12,008,885 17,681,155 17,681,155 - 14,216,947 Fund Balances - December 31 7,324,570 9,451,830 17,285,604 7,833,774 17,681,155 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E4 4 - 2 - 62 6/5/2012 2010 Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Interest on investments46,800 46,800 65,787 18,987 40,350 Total Revenues 46,800 46,800 65,787 18,987 40,350 Expenditures: Economic Development Capital outlay - 100,000 - 100,000 - Total Expenditures - 100,000 - 100,000 - Other Financing Sources (Uses): Transfers (out)- (515,000) (515,000) - - Total Other Financing Sources (Uses)- (515,000) (515,000) - - Net Change in Fund Balances 46,800 (568,200) (449,213) 118,987 40,350 Fund Balances - January 1 9,371,154 9,365,004 9,365,004 - 9,324,654 Fund Balances - December 31 9,417,954 8,796,804 8,915,791 118,987 9,365,004 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Special Revenue Funds Conference Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E5 4 - 2 - 63 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Permits and Licenses: Business licenses317,000332,000332,104 104 314,452 Other: Interest on investments - - 1,874 1,874 1,083 Total Revenues 317,000 332,000 333,978 1,978 315,535 Expenditures: Economic Development: Commission on Special Events300,000300,000299,001 999 268,000 Administration fee 16,10017,10016,605 495 15,723 Total Expenditures 316,100 317,100 315,606 1,494 283,723 Excess (Deficiency) of Revenues Over Expenditures 900 14,900 18,372 3,472 31,812 Fund Balances - January 1 127,759138,171138,171- 106,359 Fund Balances - December 31 128,659 153,071 156,543 3,472 138,171 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E6 4 - 2 - 64 6/5/2012 2010 Final Budget Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Taxes: Lodging tax 1,745,000 2,145,988 400,988 1,954,713 Other: Interest on investments 1,200 857 (343) 1,084 Total - Other 1,200 857 (343) 1,084 Total Revenues 1,746,200 2,146,845 400,645 1,955,797 Expenditures: Economic Development: Destination 445,650380,65864,992 180,008 Front Range 347,000342,3954,605 256,948 Groups and meetings 330,000318,24111,759 274,482 Marketing 482,100505,718(23,618) 508,625 Special Events - 108,500(108,500) - Purchased services 395,000285,000110,000 453,300 Total Expenditures 1,999,750 1,940,512 59,238 1,673,363 Excess (Deficiency) of Revenues Over Expenditures (253,550) 206,333 459,883 282,434 Fund Balances - January 1 855,364 855,364 - 572,930 Fund Balances - December 31 601,814 1,061,697 459,883 855,364 With Comparative Totals For the Year Ended December 31, 2010 Town of Vail, Colorado Special Revenue Funds Vail Local Marketing District Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E7 4 - 2 - 65 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Other: Property tax 4,088,647 3,359,647 3,366,594 6,947 2,370,229 Interest on investments50,000 50,000 35,873(14,127) 3,971 Interest Subsidy (Build America Bonds)190,463 190,463 194,1653,702 - Total Revenues 4,329,110 3,600,110 3,596,632 (3,478) 2,374,200 Expenditures: Economic Development: Administration 72,240 72,240 57,706 14,534 39,906 Treasurer's fees 122,659 122,659 101,001 21,658 71,113 Professional fees 25,000 25,000 2,125 22,875 - Vail Square Metro District462,348 462,348 466,843 (4,495) 365,558 Capital Outlay - - - - 1,859 Total Economic Development:682,247 682,247 627,675 54,572 478,436 Debt Service: Principal 250,000 250,000 250,000 - - Interest 676,676 676,676 676,675 1 - Fiscal agent fees 2,200 2,200 2,200 - - Total Debt Service:928,876 928,876 928,875 1 - Total Expenditures 1,611,123 1,611,123 1,556,550 54,573 478,436 Excess (Deficiency) of Revenues Over Expenditures 2,717,987 1,988,987 2,040,082 51,095 1,895,764 Other Financing Sources (Uses): Debt proceeds - - - - 11,940,000 Issuance costs - - - - (236,893) Issuance premium - - - - 63,427 Transfers out (8,520,319) (9,579,070) (7,125,196) 2,453,874 (1,070,365) Total Other Financing Sources (Uses)(8,520,319) (9,579,070) (7,125,196) 2,453,874 10,696,169 Net Change in Fund Balances (5,802,332) (7,590,083) (5,085,114) 2,504,969 12,591,933 Fund Balances - January 1 15,126,522 15,229,105 15,229,105 - 2,637,172 Fund Balances - December 31 9,324,190 7,639,022 10,143,991 2,504,969 15,229,105 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E8 4 - 2 - 66 6/5/2012 SUPPLEMENTARY INFORMATION 4 - 2 - 67 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Other: Interest on investments- - 12,973 12,973 4,728 Total Revenues - - 12,973 12,973 4,728 Expenditures: Debt Service: Principal 2,115,000 2,115,000 2,115,000 - 2,035,000 Interest 165,681 165,681 165,682 (1) 238,331 Fiscal agent fees4,000 4,000 500 3,500 500 Total Expenditures 2,284,681 2,284,681 2,281,182 3,499 2,273,831 (Deficiency) of Revenues Over Expenditures (2,284,681) (2,284,681) (2,268,209) 16,472 (2,269,103) Other Financing Sources: Transfers in 2,279,572 2,279,572 2,279,574 2 2,273,957 Total Other Financing Sources (Uses 2,279,572 2,279,572 2,279,574 2 2,273,957 Net Change in Fund Balances (5,109) (5,109) 11,365 16,474 4,854 Fund Balances - January 1 186,056 186,056 194,282 8,226 189,428 Fund Balances - December 31 180,947 180,947 205,647 24,700 194,282 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2011 With Comparative Totals For the Year Ended December 31, 2010 2011 Budget (GAAP Basis) and Actual The accompanying notes are an integral part of these financial statements. F1 4 - 2 - 68 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Rent 1,672,160 1,528,708 1,520,426 (8,282) 2,286,910 Laundry room lease 24,255 12,900 11,869 (1,031) 17,607 Other 300 9,237 9,508 271 6,763 Total Operating Revenues 1,696,715 1,550,845 1,541,803 (9,042) 2,311,280 Operating Expenses: Advertising 7,500 14,003 17,502 (3,499) 7,627 Office expenses 13,040 9,322 8,440 882 12,975 Management fee 90,000 70,000 70,000 - 90,000 Telecommunications 5,940 6,148 6,765 (617) 7,246 Wages - Administrative59,400 83,303 87,293 (3,990) 77,458 Wages - Maintenance and other130,428 128,507 132,250 (3,743) 120,898 Repairs and maintenance79,400 92,868 89,545 3,323 81,413 Electric 32,000 57,476 58,887 (1,411) 44,663 Water and sewer 130,150 127,438 125,868 1,570 125,611 Trash removal 26,400 22,260 21,654 606 18,256 Snow removal 37,000 28,939 31,181 (2,242) 30,952 Fire, life, safety, and security4,050 6,683 6,975 (292) 2,478 Property insurance 67,892 64,992 64,992 - 65,810 Professional fees 8,600 8,500 8,500 - 8,250 Bad debt expense - 2,951 3,701 (750) (750) Miscellaneous 2,900 2,595 2,322 273 2,101 Capital maintenance and replacement155,000 106,134 23,817 82,317 46,491 Depreciation 519,264 519,264 519,974 (710) 519,267 Total Operating Expenses 1,368,964 1,351,383 1,279,666 71,717 1,260,746 Operating Income (Loss)327,751 199,462 262,137 62,675 1,050,534 Non-operating Revenues (Expenses): Interest on investments 9,984 7,355 7,106 (249) 9,416 Interest expense (166,823) (73,506) (70,573) 2,933 (80,225) Financing fees (262,772) (262,381) (262,459) (78) (267,793) Amortization of bond issue costs(38,256) (37,146) (36,592) 554 (39,121) Total Non-operating Revenue (Expenses)(457,867) (365,678) (362,518) 3,160 (377,723) Change in Net Assets (130,116) (166,216) (100,381) 65,835 672,811 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Enterprise Fund Timber Ridge Affordable Housing Corporation Schedule of Revenues, Expenses, and Changes in Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F2 4 - 2 - 69 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Dispatch service fee537,827 537,827 537,827 - 520,411 Dispatching contracts1,214,925 1,214,925 1,214,926 1 1,158,151 Other charges - - 89 89 15,741 Total Operating Revenues 1,752,752 1,752,752 1,752,842 90 1,694,303 Operating Expenses: Public Safety: Salaries and benefits1,849,958 1,849,958 1,705,469 144,489 1,702,928 Operating expenses519,006 519,006 435,038 83,968 463,094 Capital outlay 800,000 870,000 736,841 133,159 43,571 Total Operating Expenses 3,168,964 3,238,964 2,877,348 361,616 2,209,593 Operating (Loss) - Budget Basis (1,416,212) (1,486,212) (1,124,506) 361,706 (515,290) Non-operating Revenues: Other State Revenues - - 4,386 4,386 - Operating grant - E-911 Board743,656 743,656 743,656 - 750,440 Earnings on investments7,500 7,500 9,891 2,391 6,735 Total Non-operating Revenues 751,156 751,156 757,933 6,777 757,175 Change in Net Assets - Budget Basis (665,056) (735,056) (366,573) 368,483 241,885 Reconciliation to GAAP Basis: Adjustments: Change in compensated absences 17,017 (13,751) Depreciation (215,914) (226,655) Capitalized assets 736,841 43,571 Total Adjustments 537,944 (196,835) Change in Net Assets - GAAP Basis 171,371 45,050 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Enterprise Fund Dispatch Services Fund Schedule of Revenues, Expenses, and Changes in Net Assets Budget (Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F3 4 - 2 - 70 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Operating charges2,128,7442,258,7442,250,636(8,108) 2,072,053 Replacement charges565,337565,337563,763(1,574) 717,336 Total - Charges and Fees 2,694,081 2,824,081 2,814,399 (9,682) 2,789,389 Other: Insurance reimbursements- 43,240 31,635(11,605) 29,660 Other - - 39,76539,765 16,712 Total - Other - 43,240.000 71,400 28,160 46,372 Total Operating Revenues 2,694,081 2,867,321 2,885,799 18,478 2,835,761 Operating Expenses: Public Works: Vehicle maintenance and fuel2,185,9292,315,9292,378,703 (62,774) 2,117,235 Capital outlay 1,007,872 1,148,288 609,946 538,343 941,615 Total Operating Expenses 3,193,801 3,464,217 2,988,649 475,568 3,058,850 Operating Income (Loss) - Budget Basis (499,720) (596,896) (102,850) 494,046 (223,089) Non-operating Revenues: Earnings on investments10,32410,32414,1653,841 10,159 Proceeds from sale of assets203,550203,550106,494(97,056) 121,734 Total Non-operating Revenues:213,874 213,874 120,659 (93,215) 131,893 Change in Net Assets - Budget Basis (285,846) (383,022) 17,809 400,831 (91,196) Reconciliation to GAAP Basis: Adjustments: Net book value of disposed assets (5,548) (98,931) Depreciation (602,354) (564,862) Change in accrued compensated absences (2,715) 4,623 Capitalized assets 609,946 941,615 Total Adjustments (671) 282,445 Change in Net Assets - GAAP Basis 17,138 191,249 With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Internal Service Funds Heavy Equipment Fund Schedule of Revenues, Expenses, and Changes in Net Assets Budget (Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F4 4 - 2 - 71 6/5/2012 2010 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Insurance premiums2,565,0002,565,0002,589,51624,516 2,540,066 Insurance premiums - Employee contributions410,000410,000408,081(1,919) 353,022 Insurer proceeds 270,000 620,000592,802(27,198) 680,429 Total Operating Revenues 3,245,000 3,595,000 3,590,399 (4,601) 3,573,517 Operating Expenses: General Government: Health claims 2,990,0003,340,0003,360,952(20,952) 3,278,644 Premiums 360,000360,000346,73813,262 367,094 Administrative fees 20,00020,00020,000- 20,000 Short-term disability payments35,00035,00014,975 20,025 35,758 Total Operating Expenses 3,405,000 3,755,000 3,742,665 12,335 3,701,496 Operating Income (Loss)(160,000) (160,000) (152,266) 7,734 (127,979) Non-operating Revenues: Earnings on investments10,00010,0007,532(2,468) 5,934 Change in Net Assets (150,000) (150,000) (144,734) 5,266 (122,045) With Comparative Totals For the Year Ended December 31, 2010 2011 Town of Vail, Colorado Internal Service Funds Health Insurance Fund Schedule of Revenues, Expenses, and Changes in Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F5 4 - 2 - 72 6/5/2012 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments2,034,231 965,034 2,999,265 Accounts receivable, net of allowance for uncollectibles4,935 224,998 229,933 Inventory 285,702 - 285,702 Total Current Assets 2,324,868 1,190,032 3,514,900 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation 3,437,262 - 3,437,262 Total Assets 5,762,130 1,190,032 6,952,162 Liabilities: Current Liabilities: Accounts payable 12,990 235,645 248,635 Accrued salaries and wages 41,664 - 41,664 Current portion of compensated absences22,864 - 22,864 Total Current Liabilities 77,518 235,645 313,163 Non-current Liabilities: Compensated absences, net of current portion34,298 - 34,298 Total Liabilities 111,816 235,645 347,461 Net Assets: Invested in capital assets, net of related debt3,437,262 - 3,437,262 Unrestricted 2,213,052 954,387 3,167,439 Total Net Assets 5,650,314 954,387 6,604,701 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Assets December 31, 2011 The accompanying notes are an integral part of these financial statements. F6 4 - 2 - 73 6/5/2012 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal2,814,399 2,589,516 5,403,915 Charges for services - External - 408,081 408,081 Insurance reimbursements 31,635 592,802 624,437 Other 39,765 - 39,765 Total Operating Revenues 2,885,799 3,590,399 6,476,198 Operating Expenses: Operations 2,381,418 - 2,381,418 Health claims and premiums - 3,742,665 3,742,665 Depreciation 602,354 - 602,354 Total Operating Expenses 2,983,772 3,742,665 6,726,437 Operating Income (Loss)(97,973) (152,266) (250,239) Non-operating Revenues (Expenses): Gain (loss) on disposal of assets100,946 - 100,946 Investment income 14,165 7,532 21,697 Total Non-operating Revenues (Expenses) 115,111 7,532 122,643 Change in Net Assets 17,138 (144,734) (127,596) Net Assets - January 1 5,633,176 1,099,121 6,732,297 Net Assets - December 31 5,650,314 954,387 6,604,701 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F7 4 - 2 - 74 6/5/2012 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 2,814,399 2,589,516 5,403,915 Other cash receipts 76,988 916,700 993,688 Cash paid for goods and services (1,450,803) (3,897,776) (5,348,579) Cash paid to employees (952,724) (4,345) (957,069) Net Cash Provided (Used) by Operating Activities 487,860 (395,905) 91,955 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 106,494 - 106,494 Acquisition and construction of capital assets(609,946) - (609,946) Net Cash Provided (Used) by Capital and - Related Financing Activities (503,452) - (503,452) Cash Flows From Investing Activities: Interest on Investments 14,165 7,532 21,697 Net Cash Provided (Used) by Investing Activities 14,165 7,532 21,697 Net Change in Cash and Cash Equivalents (1,427) (388,373) (389,800) Cash and Cash Equivalents - Beginning 2,035,658 1,353,407 3,389,065 Cash and Cash Equivalents - Ending 2,034,231 965,034 2,999,265 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(97,973) (152,266) (250,239) Adjustments: Depreciation 602,354 - 602,354 (Increase) decrease in accounts receivable5,589 (84,183) (78,594) (Increase) decrease in inventory 26,315 - 26,315 Increase (decrease) in accounts payable(53,439) (159,456) (212,895) Increase (decrease) in accrued wages and benefits5,014 - 5,014 Total Adjustments 585,833 (243,639) 342,194 Net Cash Provided (Used) by Operating Activities 487,860 (395,905) 91,955 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F8 4 - 2 - 75 6/5/2012 2010 Variance Project Final Positive Number Project Name Budget Actual (Negative)Actual CBI005Library Roof Replacement102,840 - 102,840 390,615 CBI010Fire Infrastructure / West Vail Fire Stn2,003,618 1,890,760 112,858 3,296,382 CEP001Fire Truck Purchase 253,917 253,900 17 316,083 CEP004Replace Buses3,486,614 2,240,636 1,245,978 - CEP005Hardware Purchases145,000 105,450 39,550 95,158 FED021LiveScan System (Police)14,250 14,250 - 14,250 FED026Virtual Briefing System (Police)10,000 9,095 905 - CEP008Parking Entry System55,000 53,195 1,805 75,123 CEP010Network Upgrades21,000 18,010 2,990 34,693 CEP011Document Imaging130,636 141,681 (11,045) 115,956 CEP017Radio Tower Equipment30,000 - 30,000 - CEP018Web and E-commerce39,000 6,300 32,700 - CEP019Computer-Aided Dispatch (CAD/RMS)57,000 60,690 (3,690) 69,204 CEP022Audio Visual 41,996 60,136 (18,140) 1,883 CEP031Software Licensing33,640 30,348 3,292 18,323 CEP033Data Centers / Computer Rooms15,000 8,950 6,050 7,117 CEP035Comm Dev Arc/GIS System16,000 - 16,000 3,472 CEP036Business Systems225,000 - 225,000 - CEP037Library Self Check RFID System- - - 83,673 CHP001Buy-Down Program1,019,921 - 1,019,921 - CHP005Creekside Housing Improvements160,000 136,525 23,475 110,581 CHP006Loan Guarantee - Timber Ridge925,000 - 925,000 - CHP007Timber Ridge Legal / Zoning50,000 32,685 17,315 65,243 CHP018Arosa Drive Duplex - Empl Housing- - - 297,393 CMT003Bus Shelter Replacement Program27,900 735 27,165 1,046 CMT004Capital Street Maintenance1,215,979 874,501 341,478 270,321 CMT005Facility Capital 625,000 495,201 129,799 231,246 CMT007Parking Structure Maintenance504,000 333,873 170,127 246,985 CMT009Environmental Improvements3,122,715 1,989,694 1,133,021 - CMT011Vail Village Inn Homeowners Roof Assessmt17,000 17,000 - 17,000 CMT012Flood Repairs 543,748 194,556 349,192 992 CMT010Underground Utilities273,000 151,800 121,200 - COT002Street Light Improvement Program67,500 53,840 13,660 67,496 COT004Fiber-Optics in Buildings17,000 2,251 14,749 24,375 COT011I-70 Noise Mitigation378,140 27,957 350,183 5,040 COT018Chamonix Area Plan92,600 90,800 1,800 38,944 CSC010Way-Finding Improvements100,000 50,046 49,954 23,381 CSC011West Meadow Drive - - - 19,555 CSC012Village Streetscape172,429 86,111 86,318 594,961 CSR007Neighborhood Road Reconstruction2,038,701 229,206 1,809,495 195,055 CSR008Neighborhood Bridges1,195,882 144,067 1,051,815 4,118 CSI001Manor Vail Development83,800 - 83,800 - VRA001LionsHead Transit Center - VRA Funded1,419,945 1,419,945 - 4,410,909 VRA002LionsHead Welcome Center - VRA Funded7,534,706 6,595,914 938,792 358,294 VRA003LionsHead Parking Addition - VRA Funded- - - 2,521 VRA004Library Remodel174,500 72,772 101,728 - VRA005East LionsHead Portal200,000 158,711 41,289 - VRA006West LionsHead Portal75,000 52,500 22,500 - VRA007Guest Services Enhancements217,800 23,645 194,156 - Total 28,932,777 18,127,736 10,805,042 11,507,388 2011 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 With Comparative Totals For the Year Ended December 31, 2010 The accompanying notes are an integral part of these financial statements. F9 4 - 2 - 76 6/5/2012 2010 Variance Project Final Positive Number Project Name Budget Actual (Negative)Actual CCF001Golf Clubhouse Redevelopment340,000 2,071 337,929 - CCF002Ford Park Fields Redevelopment175,000 1,400 173,600 - RFP005Alpine Gardens Contribution65,620 65,620 - 55,620 RFP006Ford Park Master Plan - Improvements2,332,924 76,739 2,256,185 145,093 RFP009Ford Park - Improvements200,000 - 200,000 - RGT002GOCO Grant - Red Sandstone Playground161,000 154,826 6,174 - RMG001Project Management - 200 (200) 200 RMG002Environmental: Solid Waste 28,862 1,496 27,366 1,265 RMG003Environmental: Ecosystem Health27,989 22,542 5,447 460 RMG004Environmental: Public Education2,636 1,715 921 1,610 RMG005Environmental: Energy & Transportation35,884 20,534 15,350 69,960 RMT013Environmental Sustainability6,004 6,004 - 1,508 RMT001Recreation Path Maintenance141,177 68,675 72,502 119,241 RMT002Tree Maintenance 85,000 50,111 34,889 57,331 RMT005Street Furniture - Streetscape22,500 1,106 21,394 22,472 RMT006Black Gore Creek Sand Mitigation75,600 75,600 - 55,477 RMT009Park/Playground Capital Maintenance111,891 118,920 (7,029) 94,609 RMT010Stream Tract Encroachment Survey14,081 3,980 10,101 - RMT012Forest Health Management - - - 29 RMT015Greenhouse - - - 1,576 RMT016Ford Park / Tennis Center Improvements433,753 91,198 342,555 84,656 RMT018Dobson Ice Arena 359,316 16,037 343,279 58,843 RMT019Gymnastics Center 25,000 2,098 22,902 - RMT020Golf Course Irrigation Project - - - 23,405 RMT021Golf Course Clubhouse & Other1,265,966 5,922 1,260,044 23,349 RMT022Recreation Enhancement Account (VRD)377,900 - 377,900 - RMT023Youth Services 25,000 25,000 - - RMT025Nature Center 5,529 - 5,529 4,471 RMT026Bald Mtn Underpass - - - 5,100 RMT027Golf Course - Other Impr 400,623 267,456 133,167 200,799 RMT028Flood Repairs 400,000 382,237 17,763 269,167 RPA001Property Acquisition 290,000 281,720 8,280 350,261 RPD012Booth Creek Playground & Park65,000 - 65,000 - RPD013Kayak Take-Out 10,000 - 10,000 - RPD014Public Restrooms 370,000 - 370,000 - RPI001Playground Safety Improvements (Red S.)464,000 266,369 197,631 - RPI003Irrigation / Raw Water Project379,657 379,657 - - RPI005Stephen's Park Improvements2,759 - 2,759 63,241 RPT007Trailhead Signs/Development24,000 - 24,000 - RPT010Frontage Road Bike & Ped Paths2,364,658 1,663,643 701,015 29,610 RPT017Timber Ridge - Buffehr Creek Separation- - - 4,123 RRT001Public Art 287,016 43,382 243,634 24,040 RRT003ADA Compliance 10,000 8,263 1,737 533 RRT004Public Art - Morales Art 215,692 210,745 4,947 44,036 RRT006Public Art - Winterfest 51,600 23,206 28,394 38,394 RSS003Seibert Circle - - - 16,459 RSS004Landscape Medians 40,000 21,758 18,242 3,256 RSS005Guest Services Enhancements100,000 - 100,000 - Total 11,793,637 4,360,230 7,433,407 1,870,194 2011 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2011 With Comparative Totals For the Year Ended December 31, 2010 The accompanying notes are an integral part of these financial statements. F10 4 - 2 - 77 6/5/2012 LOCAL HIGHWAY FINANCE REPORT 4 - 2 - 78 6/5/2012 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36 City or County:Vail YEAR ENDING : December 2011 This Information From The Records Of Town of Vail:Prepared By: Kathleen Halloran Phone:970-479-2116 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)2,343,598 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:1,868,408 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 235,155 2. General fund appropriations 4,463,877 b. Snow and ice removal 841,956 3. Other local imposts (from page 2)1,028,075 c. Other 4. Miscellaneous local receipts (from page 2)0 d. Total (a. through c.)1,077,111 5. Transfers from toll facilities 4. General administration & miscellaneous 259,902 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 1,105,736 a. Bonds - Original Issues 6. Total (1 through 5)6,654,755 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 7. Total (1 through 6)5,491,952 b. Redemption B. Private Contributions 924,455 c. Total (a. + b.)- C. Receipts from State government 2. Notes: (from page 2)238,348 a. Interest D. Receipts from Federal Government b. Redemption (from page 2)- c. Total (a. + b.)- E. Total receipts (A.7 + B + C + D)6,654,755 3. Total (1.c + 2.c)- C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D)6,654,755 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)0 1. Bonds (Refunding Portion) B. Notes (Total)0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation - 6,654,755 6,654,755 - 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 AND STREET PURPOSES ITEM ITEM IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD F11 4 - 2 - 79 6/5/2012 STATE: Colorado YEAR ENDING (mm/yy): December 2011 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 1,028,075 g. Other Misc. Receipts 6. Total (1. through 5.)1,028,075 h. Other c. Total (a. + b.)1,028,075 i. Total (a. through h.)0 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 214,409 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 23,939 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)23,939 g. Total (a. through f.)0 4. Total (1. + 2. + 3.f)238,348 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a)(b)(c) A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 254,327 254,327 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 2,089,271 2,089,271 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4)0 2,089,271 2,089,271 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)0 2,343,598 2,343,598 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM ITEM ITEM ITEM F12 4 - 2 - 80 6/5/2012 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE 4 - 2 - 81 6/5/2012 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, III, and IV December 31, 2011 20072008200920102011 Pledged Revenues 18,913,138 19,631,366 16,913,338 17,676,115 19,581,415 Maximum Annual Debt Service2,324,457 2,324,457 2,280,681 2,280,6812,280,681 Coverage Factor 8.14x8.45x7.42x7.75x8.59x 20072008200920102011 Sales Tax Collections (see Note below)18,913,138 19,631,366 16,913,338 17,676,115 19,581,415 Per Cent Increase 6.01%3.80%-13.85%4.51%10.78% Note: The reported Sales Tax Collections vary from the sales tax revenues reported in the Town's audited financial statements because one-time payments of sales tax on, for example, the sale of business assets or the settlement of a sales tax claim, are not included above. CurrentYear CurrentYear CurrentYear Month MonthTo DateMonthTo DateMonthTo Date January2,564,383 2,564,383 2,795,688 2,795,688 9.0%9.0% February2,577,360 5,141,743 2,803,136 5,598,824 8.8%8.9% March2,685,004 7,826,747 3,143,418 8,742,242 17.1%11.7% April1,156,934 8,983,681 1,191,690 9,933,932 3.0%10.6% May 421,925 9,405,606 473,292 10,407,224 12.2%10.6% June 873,765 10,279,371 895,951 11,303,175 2.5%10.0% July1,228,767 11,508,138 1,481,329 12,784,504 20.6%11.1% August1,147,352 12,655,490 1,310,471 14,094,975 14.2%11.4% September761,425 13,416,915 889,945 14,984,920 16.9%11.7% October594,362 14,011,277 623,420 15,608,340 4.9%11.4% November701,075 14,712,352 788,430 16,396,770 12.5%11.4% December2,963,763 17,676,115 3,184,645 19,581,415 7.5%10.8% Monthly Comparison of Collections of Sales Tax 12-month Period Ended12-month Period Ended December 31, 2010December 31, 2011Percent Change TABLE I Debt Service Coverage TABLE III History of Town 4% Sales Tax Receipts TABLE IV G1 4 - 2 - 82 6/5/2012 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables V and VI December 31, 2011 20072008200920102011 Annual Sales Tax Paid by Ten Principal Generators6,123,462 6,404,706 5,237,655 5,467,868 6,091,354 Total Annual Sales Tax Collected by Town18,913,138 19,631,366 16,913,338 17,676,115 19,581,415 % of Total Annual Sales Tax Collections Generated by Ten Principal Generators32.4%32.6%31.0%30.9%31.1% 20112012201320142015 Revenues: Sales tax 8,956,252 6,941,000 7,081,000 7,223,000 7,367,000 Construction Use Tax721,002 515,000 530,400 546,000 562,400 Employee Housing Fee - in - Lieu249,217 70,000 - - - Federal grants 1,205,465 828,000 - 1,024,800 - Lease revenue 192,710 188,160 192,660 192,660 192,660 Project reimbursment1,015,645 174,435 - - - Transfers in 9,003,960 9,035,574 1,510,000 3,340,000 350,000 Earnings on investments and other142,481 67,500 83,350 71,300 69,300 Total Revenues 21,486,732 17,819,669 9,397,410 12,397,760 8,541,360 Expenditures: Equipment purchases2,821,662 2,961,928 1,101,000 1,938,900 227,000 Maintenance 4,137,474 2,043,991 1,415,000 165,000 1,445,000 Buildings and improvements1,890,760 2,167,709 1,750,000 670,000 - Street projects 509,430 4,641,003 4,283,182 8,320,441 5,865,000 Housing programs - 1,474,921 1,400,000 - - Lionshead redevelopment8,323,487 7,068,661 1,400,000 4,200,000 1,965,000 Other improvements444,924 2,546,719 - - - Transfer to Debt Service Fund2,279,574 2,088,346 - - - Total Expenditures 20,407,311 24,993,278 11,349,182 15,294,341 9,502,000 Revenues Over (Under) Expenditures 1,079,422 (7,173,609) (1,951,772) (2,896,581) (960,640) Beginning Fund Balance 19,279,317 20,358,739 13,185,130 11,233,358 8,336,777 Ending Fund Balance 20,358,739 13,185,130 11,233,358 8,336,777 7,376,137 TABLE V Sales Tax Collections by Principal Sales Tax Generators TABLE VI Capital Projects Fund: 2011 Actual / Projected 2012- 2015 G2 4 - 2 - 83 6/5/2012 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table XIX December 31, 2011 20072008200920102011 Revenues: General sales taxes10,741,500 11,640,000 8,760,000 10,143,624 10,859,000 Property and ownership taxes3,012,030 4,309,622 4,506,491 4,951,386 5,031,770 Ski area lift ticket admissions tax3,039,619 3,277,703 3,048,011 3,357,717 3,529,125 Franchise fees 858,285 1,052,665 908,577 1,023,398 1,039,185 Penalties and interest on delinquent taxes19,348 22,544 35,507 17,027 33,954 Licenses and permits5,083,017 3,903,026 1,440,972 1,387,337 1,136,966 Intergovernmental revenues1,509,040 1,706,197 1,611,570 1,929,121 2,066,191 Charges for services5,351,540 5,817,239 5,693,448 5,912,669 4,986,282 Fines and forfeits 347,090 396,707 330,660 271,561 265,575 Interest 984,040 571,072 170,353 119,049 189,591 Rents 897,958 949,961 912,091 862,151 895,872 Other 195,016 163,025 243,991 386,271 477,102 Total Revenues 32,038,483 33,809,761 27,661,671 30,361,311 30,510,613 Expenditures: General government7,730,300 7,715,791 6,037,371 5,928,142 6,001,080 Public safety 7,104,904 7,624,590 7,754,157 7,619,415 7,898,115 Public works and transportation10,365,091 11,779,063 10,975,098 11,204,253 11,362,070 Economic development and community assistance1,461,991 1,703,092 1,665,864 1,608,674 1,961,398 Municipal library 752,031 828,056 808,649 794,879 782,557 Total Expenditures 27,414,317 29,650,592 27,241,139 27,155,363 28,005,220 Excess of Revenues Over Expenditures 4,624,166 4,159,169 420,532 3,205,948 2,505,393 Other Financing Sources (Uses): Operating transfers out(222,500) (991,000) - (3,742,673) (1,845,800) Total Other Financing Sources (Uses)(222,500) (991,000) - (3,742,673) (1,845,800) Excess of Revenues Over Expenditures and Other Financing Sources (Uses)4,401,666 3,168,169 420,532 (536,725) 659,593 Fund Balance: Beginning 15,433,051 19,834,717 23,002,885 23,423,417 22,886,692 Ending 19,834,717 23,002,885 23,423,417 22,886,692 23,546,285 TABLE XIX History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 4 - 2 - 84 6/5/2012 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables XX and XXI December 31, 2011 2011 Amended 2011 2012 Budget Actual Budget Revenues: General sales taxes 10,859,000 10,859,000 10,859,000 Property and ownership taxes5,055,000 5,031,770 4,232,000 Ski area lift ticket admissions tax3,193,000 3,529,125 3,492,000 Franchise tax 1,087,403 1,039,185 1,112,753 Licenses and permits 1,040,200 1,136,966 955,000 Intergovernmental revenues 1,887,155 2,066,191 1,911,250 Charges for services 5,321,154 4,986,282 5,199,850 Fines and forfeits 305,000 265,575 325,000 Interest 194,000 189,591 116,900 Rents and other 1,244,913 1,406,928 1,076,816 Total 30,186,825 30,510,613 29,280,569 Expenditures: Town officials 1,435,6571,279,098 1,453,334 Administrative 3,369,4443,227,937 3,467,195 Community development 1,731,9331,494,045 1,581,504 Public safety - Police 4,697,029 4,279,261 4,591,423 Public safety - Fire 3,094,891 3,081,027 3,078,507 Public works 3,613,9403,465,263 3,674,733 Transportation & Parking 4,879,2654,737,872 4,889,032 Facility maintenance 3,618,9893,324,447 3,551,345 Public library 803,360782,557 816,751 Contributions and special events1,800,1581,795,886 2,528,935 Dispatch service charges 537,827 537,827 575,706 Total 29,582,493 28,005,220 30,208,465 Excess (Deficiency) of Revenues Over Expenditures 604,332 2,505,393 (927,896) Other Financing Sources (Uses): Transfer to Capital Projects Fund(1,845,800) (1,845,800) - Total Other Financing Sources (Uses):(1,845,800) (1,845,800) - Net Change in Fund Balances (1,241,468) 659,593 (927,896) Fund Balance - January 1 22,886,692 22,886,692 21,645,224 Fund Balance - December 31 21,645,224 23,546,285 20,717,328 Outstanding Issue Principal Sales Tax Revenue Refunding Bonds, Series 2008 1,660,000 Sales Tax Revenue Refunding Bonds, Series 2002B 535,000 Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A3,420,000 Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B8,270,000 Housing Facilities Revenue Bonds, Series 2003A 17,740,000 Total 31,625,000 TABLE XXI Outstanding Revenue Obligations TABLE XX General Fund 2011 Budget Summary and Actual Comparison / 2012 Budget G4 4 - 2 - 85 6/5/2012 SINGLE AUDIT REPORTS AND SCHEDULES 4 - 2 - 86 6/5/2012                   !"" #$% &'('' ) *+, -).  #$% &'( '/ !, 0'  1 )!'/2 3( 4            56++7) 5 8) 7)  6,9 )  :69  ) )  1  .+  #$% &'('' #$% &($$2 #$% &22'('/                                         !"#$% &'() %$()* )  ()* )                                    ! "#$%       &'()   *                + ,()(-        .-/-                             !0 .   / - ) )+('(),(- 1         *                    2           2     *        -3  2     *       - 3  2                               -3                                 *                 - 4                                                                   5-                      5      - !,)(' # 3          *                                                 -                    2    -           6         - 4 - 2 - 87 6/5/2012     !"#$ #$% $ #$% $ (            !                                        - '  ##'(#* . . . /0*12/1 4 - 2 - 88 6/5/2012                   !"" #$% &'('' ) *+, -).  #$% &'( '/ !, 0'  1 )!'/2 3( 4            56++7) 5 8) 7)  6,9 )  :69  ) )  1  .+  #$% &'('' #$% &($$2 #$% &22'('/ '        3       4                5/66  !"#$% &'() %$()* )  ()* )  !,)('      ! "#$%   6     .-/-4 +    7 "#4+7$%                   &'()-*             *      / 8    9   !-!   6                      *  -4     2   *      -          .-/-        :                     !0 .  / :  4+7!   3''  !"  #  $%-     4+7 !   3''6                   6                      -3   2         *   6               -              -4           *  6 - 1    !        6                   & '()- ) )+ !,)('                    6                -1         *      6                          2                  4+7!   3''   2     *    - 3  2    *     - 4 - 2 - 89 6/5/2012     !"#$ #$% $ #$% $ ; 3   2                                6          -3                                    6                  - 4                                                            5-                  5      -            !                                        - '  ##'(#* . . . /0*12/1 4 - 2 - 90 6/5/2012 %$()* )       3    7  '!"6/*12// <  8 &!!$ & (9##&)# &'  *   .6    1      = +   5    > ?               5> >        > &  ' 1    = +   5    > ?               5>  *      .6    3       6       <)" %!   3''> +  "%= &   8  / <')@ !8&3A()-<)) &      3 7 B'))))) 1      5 >  8( (-#) ('()!# 8          6     > 3     >     :( (-#)  ) % # 1   > !   > 9   > 3     >    4 - 2 - 91 6/5/2012 %$()* )          3    7  '!"6/*12// , :       &'())- 4 - 2 - 92 6/5/2012 Federal CFDAMajor Program Title NumberProgramExpenditures Federal Transportation Agency: Discretionary Funding Section 5309 20.500Yes1,301,951 Total - Federal Transportation Agency 1,301,951 Department of Homeland Security: Staffing for Adequate Fire and Emergency Response (SAFER)97.083No133,601 Total - U.S. Department of Homeland Security 133,601 Department of Justice: Passed through Colorado Department of Criminal Justice: Justice Assistance Grant 16.738No10,000 COPs Hiring Recovery Program 16.710No69,677 Law Enforcement Assistance Grant 16.305No14,250 Total - U.S. Department of Justice 93,927 Total 1,529,479 Note 1. Basis of Presentation: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Vail and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations . Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Note 2. Sub-recipients: The Town of Vail did not provide any federal funds listed in the Schedule of Expenditures of Federal Awards to sub-recipients. Notes to the Schedule of Expenditures of Federal Awards for the year ended December 31, 2011 Town of Vail, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. H7 4 - 2 - 93 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Results of the 2012 Town of Vail Community Survey PRESENTER(S): Suzanne Silverthorn/Chris Cares ACTION REQUESTED OF COUNCIL: Review the survey results and determine if additional follow up is needed. BACKGROUND: During the spring of 2012 the Town of Vail fielded a community survey similar to efforts conducted in the past. It consisted of questionnaires completed by full- and part-time residents, property owners and business owners to evaluate opinions on a variety of issues. Using survey techniques that permit comparisons to past research, the town employed a combination of personalized invitations via postcard mailings as well as open invitations to take the survey online. Respondents were also given a third option to request a mail-back version. The purpose of the survey is to evaluate respondents’ level of satisfaction with respect to a full range of services and to gather opinions on selected issues and areas of focus. Similar questions have been posed to Vail part-time and year-round residents on a periodic basis since 1987. The 2012 survey was designed to permit comparisons to past results, as well as to provide new insights on a variety of topics of current interest. STAFF RECOMMENDATION: None. ATTACHMENTS: Town of Vail Community Survey 2012 Final Report 2012 Community Survey 6/5/2012 Prepared for: Town of Vail Prepared by: RRC Associates, Inc. 4940 Pearl East Circle, Ste 103 Boulder, CO 80301 303/449-6558 www.rrcassoc.com Town of Vail Community Survey 2012 Final Report May 2012 5 - 1 - 1 6/5/2012 Town of Vail Community Survey 2012 RRC Associates CONTENTS Contents AN OVERVIEW OF RESULTS ...................................................................................................................... 1 A Demographic Profile of Respondents ..................................................................................................... 2 Evaluations of Topics of Policy and Broad Community Interest ................................................................. 4 An Evaluation of Town of Vail Departments and Services ......................................................................... 7 Selected Takeaways from the 2012 Community Survey ........................................................................... 8 A REPORT OF SURVEY FINDINGS ........................................................................................................... 10 Community Priorities ................................................................................................................................ 13 Environmental Issues .............................................................................................................................. 17 Events Ratings ........................................................................................................................................ 19 Taxes and Fees ....................................................................................................................................... 22 Parking Issues ......................................................................................................................................... 23 RATINGS OF SATISFACTION²DEPARTMENTS ..................................................................................... 27 Community Development ........................................................................................................................ 27 Public Works ............................................................................................................................................ 30 Bus Service ............................................................................................................................................. 32 Fire Services ............................................................................................................................................ 36 Police Services ........................................................................................................................................ 37 Library ...................................................................................................................................................... 40 SOURCES OF LOCAL INFORMATION ...................................................................................................... 44 THE IMPACTS OF I-70 ............................................................................................................................... 47 5 - 1 - 2 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 1 AN OVERVIEW OF RESULTS This summary provides an overview of selected survey results as well as an identification of some of the major themes and findings that emerged from the 2012 Community Survey. The 2012 Town of Vail Community Survey used methods virtually identical to those used in 2010, the last time a survey was fielded by the Town of Vail. Once again, the survey resulted in extensive open-ended comments as well as statistical measures of many topics that are of interest to the community. The comments are excerpted in the body of the report, and are also presented verbatim in the attachments with no editing, punctuation or spelling correction. In 2012 the surveys were fielded using three techniques. The primary method of distribution was through a postcard mailed to all identified postal addresses, including both boxes and home delivery, as well as to all identified part-time residents that own property in the Town. The postcard contained an invitation to complete the survey on-line using one of two unique passwords provided on the cards. Also, residents that had a password but requested (by telephone) to complete the survey using a paper form were provided a survey. Together these two response methods resulted in 412 completed surveys. dŚĞƐĞƐƵƌǀĞLJƐĂƌĞƌĞĨĞƌƌĞĚƚŽŝŶƚŚĞƌĞƉŽƌƚĂƐƚŚĞ “ZĂŶĚŽ Town of Vail Community Survey 2012 RRC Associates 2 A Demographic Profile of Respondents The survey contained a number of demographic questions that are used to understand input from residents. For example, much of the survey analysis presented in this report is based on overall responses to the Random Link version of the survey. However, as noted above, in some instances results from all respondents are presented in merged tables. Where graphs are based on the merged results, a notation of the sample source is provided. Where is your residence within the Town of Vail located? Random Link Open Link Overall East Vail 25% 24% 25% West Vail (north of I 70) 17% 13% 16% Potato Patch, Sandstone 14% 15% 14% Intermountain 8% 9% 8% Vail Village 8% 8% 8% Other 5% 8% 6% Buffehr Creek, Lionsridge, the Valley 6% 5% 5% Lionshead 6% 2% 5% Matterhorn, Glen Lyon 4% 4% 4% Booth Falls and Bald Mountain Road areas 2% 6% 3% Vail Commons/Safeway area 2% 4% 3% Golf Course 3% 2% Booth Creek/Aspen Lane 1% 0% Not a resident of the town of Vail 1% 0% n= 286 124 413 Do you own or rent your residence? Random Link Open Link Overall Own 87% 74% 82% Rent 12% 25% 17% Other 1% 2% 1% n= 346 215 560 5 - 1 - 4 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 3 How long have you lived within the town of Vail (or owned property if a non resident)? Random Link Open Link Overall Less than 1 year 3% 5% 4% 1-5 years 13% 14% 13% 6-15 years 25% 22% 24% More than 15 years 52% 35% 46% Not applicable 8% 24% 14% n= 354 209 563 Which of the following best describes you? Random Link Open Link Overall Year-round resident (11+ months/year) 53% 71% 60% Part-time resident 37% 11% 28% Employed in the town of Vail but don¶t live there 6% 16% 10% Get mail in the town but don¶t live or work there 2% 1% 2% Non-resident owner of business/commercial property 1% 1% n= 354 211 565 (IF RESIDENT) Do you own or operate a business within the town of Vail? Random Link Open Link Overall No 84% 85% 85% Yes 16% 15% 15% n= 280 171 451 Are you a registered voter in Vail? Random Link Open Link Overall Yes 51% 50% 51% No 49% 50% 49% n= 338 205 543 Which of these categories best describes your household status? Random Link Open Link Overall Empty-nester, children no longer at home 32% 25% 30% Couple, no children 24% 28% 26% Household with children living at home 24% 20% 23% Single, no children 19% 27% 22% n= 352 209 561 5 - 1 - 5 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 4 Gender Random Link Open Link Overall Female 48% 57% 51% Male 52% 43% 49% n= 347 210 558 Which of the following best describes your employment status? Random Link Open Link Overall Work 8 months or more a year in the local area (Vail Valley) 41% 62% 49% Not employed: retired 21% 12% 18% Currently employed outside of the local area (work on Front Range, out of state, etc.) 22% 10% 17% Other 6% 7% 7% Work 7 or fewer months a year in the local area (Vail Valley) 6% 4% 5% Not employed: homemaker 3% 2% 3% Not employed: unemployed and/or looking for work 1% 3% 2% n= 355 214 568 Evaluations of Topics of Policy and Broad Community Interest The survey contained a number of questions that were designed to provide input on policy-related topics that are of interest to the community. The following sections of this report summarize the topics that were probed. Community Priorities. Respondents were asked to evaluate nine priority topics based on a scale of 1 to 5 with 1 being 5 - 1 - 7 6/5/2012 5 - 1 - 8 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 7 5 on the five- 5 - 1 - 10 6/5/2012 5 - 1 - 11 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 10 A REPORT OF SURVEY FINDINGS Town of Vail Community Survey 2012 RRC Associates 11 Town of Vail Community Survey 2012 RRC Associates 12 Why do you feel the Town of Vail is going in the right direction, or has gotten off on the wrong track? Survey: Email / Resident Type: Year-Round / Direction: Wrong Track zInstead of focusing on making the experience better, both the Town and Vail Resorts are focusing on 'more' and 'bigger'. It is dangerous to ski Vail mountain and buildings like Solaris and Vail Plaza are too large, out of character and offer no charm. zLost its charm. Big buildings, big bucks, big business, no style. zMarketing district is a waste of money zNeed to keep the town SMALL. That is what is attractive about it. Upgrading buildings is one thing, but don't need the sprawling Denver effect. zOver incentivizing projects, selling town land rather than leasing it, not paying enough attention to big environmental issues including carrying capacity (sustainability is more than education and recycling) zParking zParking is just a mess, the whole Ever Vail proposal, seems like moving lot of different directions at one time. zSale of town land without voter approval zSelling land to the hospital, land which is not easy to come by. zSpending public funds for the wrong things zThe 'community' is no longer its residents, but those of us who live in Vail fulltime, regularly conscripted to remind the managers, council and mayor of their fiduciary responsibility to protect our assets, which wrongly seem to be identified as developers, paying guests and corporations. These are not assets, but paying dividends if we ALWAYS invest in community. zThe focus has been and is on luring the rich tourist - there is nothing for locals. We need a rec center like Avon or at minimum Singletree Rec Center. zThe present economic philosophy and end results of said philosophy are out of touch. Sense of Community. Respondents were asked whether they feel the sense of community in the Town of Vail has improved, gotten worse or stayed the same over the past two years. This question has been asked over many years and, as shown below, there is a sharp improvement in the percentage saying Vail has gotten better, up to 18% this year, from a low of 9% in 2010 and similar to the 17% obtained in 2005. The 5 - 1 - 15 6/5/2012 5 - 1 - 16 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 15 tier of priorities. However, these results are very different from those obtained in 2008 when housing issues were identified in a number of ways as the highest priority of many in Vail. Comparing the results from this question to a similar but not identical question in 2010, there are pronounced differences. Parking was most frequently identified as the top priority at that time with 25% of respondents 5 - 1 - 18 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 17 Environmental Issues The survey Town of Vail Community Survey 2012 RRC Associates 18 The results also provide indications that the opinions of year-round and part-time residents are similar but not identical. In general, year-round residents are particularly likely to believe the town should place more emphasis on dealing with the beetle kill issue. Responses are similar on Gore Creek water quality and addressing energy consumption. The survey results permit the constituencies that place greatest priority on these types of actions to be identified and measured. Emphasis on zero waste and a plastic bag initiative were evaluated for the first time in 2012. The survey responses indicate that zero waste is a higher priority as measured by both the Random Link and the Open Link survey respondents. For example, on the Random Link, 60% of all respondents rated zero Town of Vail Community Survey 2012 RRC Associates 19 Events Ratings dŚĞƐƚƌŽŶŐŵĂũŽƌŝƚLJŽĨƌĞƐƉŽŶĚĞŶƚƐƐĂLJĞǀĞŶƚƐĐƌĞĂƚĞĂƉŽ Town of Vail Community Survey 2012 RRC Associates 20 Town of Vail Community Survey 2012 RRC Associates 21 Figure 6. Please rate your satisfaction with the following aspects of town-wide events (All Respondents) 5 - 1 - 23 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 22 The survey also asked respondents to identify their three favorite events in Vail. Not surprisingly, the large events dominate in the totals. Overall, the most identified events included in rank order: Bravo, Fourth of July, Teva Games, Farmers Market and Taste of Vail. Many of the smaller events have strong Town of Vail Community Survey 2012 RRC Associates 23 Taken together, these responses provide additional documentation that the overall support and confidence in Town of Vail programs is positive at this time. The survey asked specifically about services people would be willing to pay more to obtain. There were a large number of suggestions but no single program or service stood out as lacking. (VIEW COMMENTS) Comparing responses on this question between year-round residents and part-time residents, year- round residents are about equally likely to say they pay too much (16% compared to 17% of part-time residents). However, it is notable that the percentage of part-time residents that say they are paying Town of Vail Community Survey 2012 RRC Associates 24 Respondents were asked to rate their level of satisfaction with their Parking Pass or Value Card on a Town of Vail Community Survey 2012 RRC Associates 25 Table 7 Please rate your satisfaction with parking services Satisfaction with Public Parking Services Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year- round resident (11+ months/ year) Part-time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Overall parking fees/pricing structure 1 NOT AT ALL SATISFIED 21% 20% 22% 21% 19% 20% 14% 25% 2 26% 27% 24% 25% 26% 30% 29% 25% 3 26% 26% 27% 25% 24% 32% 43% 25% 4 17% 17% 17% 18% 22% 7% 14% 5 VERY SATISFIED 10% 10% 11% 11% 9% 11% 25% Average 2.7 2.7 2.7 2.7 2.7 2.6 2.6 2.8 Booth attendant courtesy 1 NOT AT ALL SATISFIED 1% 1% 2% 2% 2% 2 6% 7% 6% 6% 3% 7% 14% 25% 3 23% 22% 25% 23% 21% 28% 29% 25% 4 35% 39% 27% 34% 39% 28% 57% 5 VERY SATISFIED 35% 31% 40% 35% 35% 37% 50% Average 3.9 3.9 4 3.9 4 4 3.4 3.8 Parking structure cleanliness 1 NOT AT ALL SATISFIED 3% 3% 2% 3% 2% 4% 2 12% 12% 14% 13% 12% 7% 13% 3 27% 30% 22% 28% 23% 29% 38% 4 36% 34% 39% 33% 40% 40% 25% 75% 5 VERY SATISFIED 22% 21% 23% 22% 23% 20% 25% 25% Average 3.6 3.6 3.7 3.6 3.7 3.6 3.6 4.3 Parking availability during winter periods 1 NOT AT ALL SATISFIED 12% 11% 13% 15% 8% 7% 2 19% 22% 13% 16% 24% 9% 40% 25% 3 26% 25% 29% 25% 31% 28% 4 28% 27% 29% 27% 28% 33% 60% 25% 5 VERY SATISFIED 15% 14% 16% 16% 9% 23% 50% Average 3.1 3.1 3.2 3.1 3.1 3.6 3.2 4 Parking availability during summer periods 1 NOT AT ALL SATISFIED 1% 1% 1% 2% 1% 2 5% 5% 5% 5% 5% 10% 3 15% 17% 12% 16% 13% 12% 4 30% 30% 29% 25% 37% 34% 63% 50% 5 VERY SATISFIED 49% 47% 52% 52% 44% 44% 38% 50% Average 4.2 4.2 4.3 4.2 4.2 4.1 4.4 4.5 Parking availability during Ford Park events 1 NOT AT ALL SATISFIED 10% 10% 9% 11% 6% 8% 14% 2 18% 20% 14% 15% 19% 27% 14% 3 32% 30% 36% 32% 38% 22% 50% 4 24% 24% 24% 23% 25% 24% 57% 5 VERY SATISFIED 16% 16% 17% 18% 12% 19% 14% 50% Average 3.2 3.2 3.3 3.2 3.2 3.2 3.4 4 5 - 1 - 27 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 26 Figure 8. Please rate your satisfaction with public parking services in Vail (Random Link) Town of Vail Community Survey 2012 RRC Associates 27 Any comments on your satisfaction with public parking services in Vail? Survey: Email / Resident Type: Year-Round zBuild some more parking! zCharge year round zClean and wash and paint the parking structures more frequently. zConcern: 1. High parking fees discourage skier-visits and decrease overall TOV revenue. 2. High parking fees actually decrease the Town's revenue. Politicians: 'Don't be so selfish, Town-centered, and greedy!' zCosts too high for all day events zI refuse to pay for parking! zI usually use the structures off season and off hours. I know everyone complains about parking fees, but they should see the fees people pay in metro areas. They should also understand that some of our high-end guests now pay for parking in the glitzy hotels in which they stay zIf Ford park parking is full, notify drivers before they reach entrance to Vail Village parking structure. zIf we have more parking, we have less open space. The pricing is high - but it does drive people to use alternative transport. zIf you are a Vail resident you should get a discount on parking when you exit by showing your ID because sometimes you have to park in the structure and $25 is really steep. To view all comments click here: (VIEW COMMENTS) RATINGS OF SATISFACTION³DEPARTMENTS Community Development The Community Development Department was used by 21% of respondents, down slightly from the 23% reported in 2010 and 26% in 2007. As summarized in the graphs below, the ratings of Community Development are based on that segment of the community that has used the services of the department. Ratings have shown some declines from 2010 but gains over years prior to 2010. In Town of Vail Community Survey 2012 RRC Associates 28 Figure 9. Please rate your satisfaction with the following aspects of the Community Development Department (Random Link) Town of Vail Community Survey 2012 RRC Associates 29 Table 8 Please rate your satisfaction with Community Development Department Community Development Department Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year-round resident (11+ months/year) Part-time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Availability of information (e g , public records) 1 NOT AT ALL SATISFIED 5% 5% 5% 4% 13% 2 5% 8% 4% 4% 3 34% 36% 32% 40% 26% 17% 50% 4 29% 28% 31% 24% 35% 50% 100% 5 VERY SATISFIED 26% 23% 31% 28% 22% 33% 50% Average 3.7 3.6 3.8 3.7 3.5 4.2 4 4 Overall service and efficiency 1 NOT AT ALL SATISFIED 8% 8% 8% 7% 19% 2 15% 15% 14% 15% 19% 3 20% 26% 10% 24% 7% 14% 4 30% 28% 34% 25% 37% 43% 100% 50% 5 VERY SATISFIED 27% 23% 34% 29% 19% 43% 50% Average 3.5 3.4 3.7 3.5 3.2 4.3 4 4.5 Timeliness of response (to telephone calls, inspections, questions/inquiries, plan review, etc ) 1 NOT AT ALL SATISFIED 7% 9% 5% 8% 4% 2 16% 15% 17% 18% 8% 14% 3 22% 26% 16% 21% 36% 50% 4 24% 24% 23% 21% 20% 43% 100% 50% 5 VERY SATISFIED 31% 26% 38% 33% 32% 43% Average 3.6 3.4 3.7 3.5 3.7 4.1 4 3.5 Building permit review and inspections 1 NOT AT ALL SATISFIED 12% 15% 5% 7% 33% 2 19% 14% 28% 24% 14% 3 21% 32% 3% 22% 19% 25% 4 23% 23% 23% 18% 24% 50% 100% 50% 5 VERY SATISFIED 25% 16% 40% 29% 10% 25% 50% Average 3.3 3.1 3.6 3.4 2.6 4 4 4.5 Courtesy and attitude/helpfulness 1 NOT AT ALL SATISFIED 7% 10% 2% 5% 16% 2 4% 10% 4% 14% 3 26% 32% 16% 26% 28% 100% 50% 4 25% 26% 22% 22% 28% 43% 5 VERY SATISFIED 38% 31% 49% 42% 28% 43% 50% Average 3.8 3.7 4.1 3.9 3.5 4.1 3 4 Knowledge/ ability to answer questions 1 NOT AT ALL SATISFIED 2% 2% 2% 1% 8% 2 7% 5% 10% 7% 8% 3 26% 31% 17% 26% 32% 17% 4 34% 35% 33% 33% 24% 50% 100% 50% 5 VERY SATISFIED 31% 26% 38% 33% 28% 33% 50% Average 3.8 3.8 3.9 3.9 3.6 4.2 4 4.5 5 - 1 - 31 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 30 Public Works Ratings for Public Works remained high this year, ranging from an average of 4.5 for Town of Vail Community Survey 2012 RRC Associates 31 Table 9 Please rate your satisfaction with Public Works Public Works Services Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year-round resident (11+ months/year) Part-time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Snow removal on roads 1 NOT AT ALL SATISFIED 0% 1% 0% 0% 2 1% 1% 1% 1% 1% 3 8% 9% 8% 9% 7% 7% 25% 4 31% 29% 34% 32% 26% 31% 71% 25% 5 VERY SATISFIED 59% 60% 58% 58% 65% 62% 29% 50% Average 4.5 4.5 4.5 4.5 4.5 4.6 4.3 4.3 Road and street maintenance by the Town of Vail (potholes, sweeping, drainage, etc ) 1 NOT AT ALL SATISFIED 2% 2% 2% 3% 0% 2% 2 4% 4% 3% 6% 1% 3 16% 15% 16% 17% 15% 5% 13% 4 42% 43% 40% 39% 44% 55% 75% 50% 5 VERY SATISFIED 37% 36% 38% 36% 40% 39% 13% 50% Average 4.1 4.1 4.1 4 4.2 4.3 4 4.5 Overall park maintenance 1 NOT AT ALL SATISFIED 0% 0% 1% 0% 0% 2 2% 1% 2% 3% 3 11% 12% 8% 12% 10% 7% 25% 4 38% 40% 35% 36% 41% 42% 71% 5 VERY SATISFIED 49% 46% 53% 49% 49% 51% 29% 75% Average 4.3 4.3 4.4 4.3 4.4 4.4 4.3 4.5 Appearance and condition of Town-owned buildings 1 NOT AT ALL SATISFIED 1% 1% 1% 1% 0% 2 5% 4% 6% 6% 3% 2% 3 22% 22% 21% 26% 16% 18% 13% 4 41% 44% 36% 38% 45% 48% 50% 75% 5 VERY SATISFIED 31% 29% 35% 29% 35% 32% 38% 25% Average 4 4 4 3.9 4.1 4.1 4.3 4.3 Friendliness and courteous attitude of Public Works employees 1 NOT AT ALL SATISFIED 1% 0% 2% 1% 1% 2 2% 2% 1% 2% 2% 3 18% 19% 16% 17% 20% 17% 20% 25% 4 32% 36% 27% 31% 37% 26% 60% 25% 5 VERY SATISFIED 47% 43% 54% 49% 40% 57% 20% 50% Average 4.2 4.2 4.3 4.3 4.1 4.4 4 4.3 Cleanliness of pedestrian villages 2 2% 0% 4% 3% 2% 3 9% 10% 6% 10% 6% 7% 4 35% 37% 32% 33% 35% 38% 63% 25% 5 VERY SATISFIED 55% 52% 58% 54% 59% 53% 38% 75% Average 4.4 4.4 4.4 4.4 4.5 4.4 4.4 4.8 Cleanliness of public restrooms 1 NOT AT ALL SATISFIED 1% 1% 1% 1% 2% 2 3% 3% 4% 3% 4% 5% 3 16% 18% 12% 19% 14% 10% 4 40% 41% 39% 39% 40% 33% 63% 67% 5 VERY SATISFIED 40% 37% 45% 38% 42% 50% 38% 33% Average 4.1 4.1 4.2 4.1 4.2 4.2 4.4 4.3 5 - 1 - 33 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 32 Bus Service Respondents remain largely satisfied with Town of Vail bus service, with over 84% of respondents rating dependability of bus service, frequency of in-town shuttle, driver courtesy and cleanliness of buses a 4 or 5 Town of Vail Community Survey 2012 RRC Associates 33 As illustrated in the past, the neighborhood location of the survey respondent within Vail is closely associated with the ratings of local buses. Shown below, there is a wide spread in average ratings by neighborhood (that is, the distance between the highest and lowest points on the vertical axis). For example, crowding on the buses is not identified as a problem from respondents that live in the Booth Creek area, where the ratings of satisfaction are high; the ratings are lowest, or least satisfactory, from Intermountain residents, and there are significant differences of opinion indicated by the wide range of responses. In contrast, the frequency of in-town shuttles is rated high by all respondents and there is relative agreement (a narrow spread) on this question. Figure 12. Please rate your satisfaction with bus service By Neighborhood (All Respondents) 5 - 1 - 35 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 34 Table 10 Please rate your satisfaction with bus service Satisfaction with Bus Service Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year-round resident (11+ months/year) Part-time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Frequency of in-town shuttle 1 NOT AT ALL SATISFIED 1% 1% 2% 2% 0% 2 2% 3% 1% 2% 1% 2% 3 11% 12% 9% 12% 9% 14% 13% 4 31% 30% 32% 32% 29% 33% 38% 50% 5 VERY SATISFIED 55% 55% 55% 53% 60% 50% 50% 50% Average 4.4 4.4 4.4 4.3 4.5 4.3 4.4 4.5 Frequency of outlying service 1 NOT AT ALL SATISFIED 3% 2% 4% 3% 4% 4% 2 9% 10% 7% 9% 7% 8% 3 21% 23% 19% 19% 23% 32% 33% 4 31% 32% 30% 32% 30% 28% 67% 5 VERY SATISFIED 35% 32% 40% 37% 35% 28% 100% Average 3.9 3.8 4 3.9 3.9 3.7 3.7 5 Bus driver courtesy 1 NOT AT ALL SATISFIED 1% 1% 1% 1% 0% 2% 2 3% 3% 2% 4% 1% 3 11% 12% 8% 13% 9% 5% 4 33% 32% 34% 34% 29% 37% 50% 33% 5 VERY SATISFIED 53% 52% 54% 48% 60% 56% 50% 67% Average 4.3 4.3 4.4 4.2 4.5 4.4 4.5 4.7 Dependability of bus service 1 NOT AT ALL SATISFIED 0% 0% 1% 1% 2 2% 2% 3% 2% 2% 2% 3 11% 12% 9% 12% 8% 12% 25% 4 29% 29% 29% 30% 29% 20% 25% 33% 5 VERY SATISFIED 57% 57% 59% 55% 60% 66% 50% 67% Average 4.4 4.4 4.4 4.4 4.5 4.5 4.3 4.7 5 - 1 - 36 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 35 Table 10 (cont.) Please rate your satisfaction with bus service Satisfaction with Bus Service Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year-round resident (11+ months/year) Part-time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Cleanliness of buses 2 3% 3% 3% 3% 2% 2% 3 11% 11% 12% 14% 6% 12% 13% 4 35% 38% 29% 33% 40% 33% 25% 50% 5 VERY SATISFIED 51% 48% 56% 50% 52% 53% 63% 50% Average 4.3 4.3 4.4 4.3 4.4 4.4 4.5 4.5 Level of crowding on buses 1 NOT AT ALL SATISFIED 5% 5% 6% 6% 6% 2 12% 14% 9% 11% 17% 10% 3 29% 29% 28% 30% 29% 27% 25% 4 36% 37% 36% 36% 32% 46% 38% 100% 5 VERY SATISFIED 18% 15% 22% 18% 16% 17% 38% Average 3.5 3.4 3.6 3.5 3.4 3.7 4.1 4 Late night bus service - Town of Vail 1 NOT AT ALL SATISFIED 4% 5% 3% 5% 3% 2 11% 12% 10% 15% 6% 6% 3 28% 28% 28% 27% 29% 44% 4 28% 30% 25% 29% 27% 25% 67% 5 VERY SATISFIED 28% 25% 34% 24% 35% 25% 33% 100% Average 3.6 3.6 3.8 3.5 3.8 3.7 4.3 5 Late night bus service - ECO Regional Transit 1 NOT AT ALL SATISFIED 16% 14% 19% 22% 3% 17% 2 15% 21% 7% 15% 16% 17% 3 34% 33% 35% 32% 40% 39% 4 15% 12% 19% 16% 10% 17% 50% 5 VERY SATISFIED 21% 21% 20% 16% 31% 11% 50% 100% Average 3.1 3.1 3.1 2.9 3.5 2.9 4.5 5 5 - 1 - 37 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 36 Fire Services About 15 percent of respondents indicated that they had used fire services within the past 12 months, identical to 2010 and down from the 22 percent reported in 2007. As in the past, ratings of fire services are based on the relatively small part of the community that used services. Fire services continue to be rated relatively high compared to most other departments and services provided by the Town. Courtesy and helpfulness and response times are rated especially favorably (about 90% 4 or 5). As shown below, plan check times and fire safety awareness receive relatively lower ratings but overall responses are favorable. The fire safety, awareness and education ratings are pulled down slightly by a large segment that rates these services a 3 (38%) and not by a large number calling these services a 1 or 2. There were no 1 ratings and 8% of responses were a 2. The open-ended comments concerning the Fire Department are found by clicking here. (VIEW COMMENTS) Figure 13. Please rate your satisfaction with the following aspects of Fire Services in the Town of Vail (Random Link) Town of Vail Community Survey 2012 RRC Associates 37 Table 11 Please rate your satisfaction with the following aspects of Fire Services in the Town of Vail Public Safety Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year- round resident (11+ months/ year) Part-time resident Employed in the town of Vail but don't live there Non- resident owner of business/ commerci al property Response times to basic medical emergencies and fires 1 NOT AT ALL SATISFIED 2% 3% 3% 3 7% 9% 9% 4 31% 31% 35% 31% 11% 50% 5 VERY SATISFIED 59% 58% 65% 56% 89% 50% Average 4.5 4.4 4.7 4.4 4.9 4.5 . Courtesy and helpfulness of firefighters and fire prevention staff 1 NOT AT ALL SATISFIED 2% 2% 2% 2 1% 1% 6% 3 5% 7% 7% 4 22% 21% 25% 24% 6% 33% 5 VERY SATISFIED 70% 68% 75% 67% 88% 67% 100% Average 4.6 4.5 4.8 4.5 4.8 4.7 5 Timely plan-check and fire inspection systems on remodeled or new construction 1 NOT AT ALL SATISFIED 4% 7% 4% 10% 2 4% 2% 7% 4% 10% 3 15% 19% 7% 16% 10% 100% 4 28% 31% 22% 36% 10% 17% 5 VERY SATISFIED 49% 41% 63% 40% 60% 83% Average 4.1 4 4.4 4 4 4.8 3 Fire safety, awareness and education programs provided 2 5% 8% 4% 25% 3 25% 38% 27% 40% 4 31% 27% 41% 38% 10% 100% 5 VERY SATISFIED 38% 27% 59% 31% 50% 75% Average 4 3.7 4.6 4 4.1 4.3 4 Police Services Police service ratings were similar to 2010 and mostly up from 2007 and 2005. In the categories of feeling of safety and security (with 85% Town of Vail Community Survey 2012 RRC Associates 38 Figure 14. Please rate your satisfaction with the following aspects of Police Services in the Town of Vail (Random Link) Town of Vail Community Survey 2012 RRC Associates 39 Table 12 Please rate your satisfaction with the following aspects of Police Services in the Town of Vail Police Services Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year- round resident (11+ months/ year) Part-time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Overall feeling of safety and security 1 NOT AT ALL SATISFIED 0% 0% 1% 1% 2 2% 1% 4% 3% 0% 5% 3 12% 13% 9% 14% 9% 9% 33% 4 32% 33% 30% 31% 35% 27% 71% 33% 5 VERY SATISFIED 54% 53% 56% 51% 55% 59% 29% 33% Average 4.4 4.4 4.4 4.3 4.5 4.4 4.3 4 Appropriate presence of police on foot/vehicle patrol 1 NOT AT ALL SATISFIED 3% 3% 4% 4% 2% 5% 2 5% 6% 4% 6% 4% 5% 3 20% 20% 20% 23% 16% 19% 13% 4 33% 33% 34% 32% 38% 33% 50% 67% 5 VERY SATISFIED 39% 39% 38% 36% 41% 38% 38% 33% Average 4 4 4 3.9 4.1 4 4.3 4.3 Friendliness and approachability of Vail police department employees 1 NOT AT ALL SATISFIED 3% 2% 4% 3% 1% 5% 2 7% 7% 8% 10% 3% 7% 3 15% 16% 14% 14% 17% 17% 25% 33% 4 28% 28% 30% 27% 32% 32% 25% 33% 5 VERY SATISFIED 46% 47% 45% 46% 48% 39% 50% 33% Average 4.1 4.1 4 4 4.2 3.9 4.3 4 Overall quality of service 1 NOT AT ALL SATISFIED 3% 3% 3% 3% 1% 7% 2 3% 2% 4% 4% 1% 2% 3 16% 17% 15% 18% 18% 10% 4 36% 34% 40% 36% 33% 40% 50% 67% 5 VERY SATISFIED 42% 44% 39% 39% 47% 40% 50% 33% Average 4.1 4.1 4.1 4 4.3 4 4.5 4.3 Crime prevention 1 NOT AT ALL SATISFIED 3% 3% 2% 4% 3% 2 6% 5% 9% 8% 3% 3% 3 20% 22% 15% 20% 22% 15% 17% 100% 4 34% 32% 38% 31% 36% 48% 67% 5 VERY SATISFIED 37% 38% 36% 37% 39% 33% 17% Average 4 4 4 3.9 4.1 4.1 4 3 Managing parking and traffic control issues 1 NOT AT ALL SATISFIED 7% 6% 7% 9% 3% 5% 2 9% 9% 10% 11% 8% 7% 3 21% 21% 22% 22% 22% 17% 29% 4 34% 35% 32% 30% 41% 32% 43% 67% 5 VERY SATISFIED 29% 29% 29% 27% 27% 39% 29% 33% Average 3.7 3.7 3.7 3.6 3.8 3.9 4 4.3 Visibility of police foot/vehicle patrol 1 NOT AT ALL SATISFIED 4% 4% 5% 5% 3% 5% 2 8% 7% 10% 9% 7% 5% 3 22% 25% 18% 22% 24% 19% 13% 50% 4 32% 31% 33% 31% 31% 36% 50% 50% 5 VERY SATISFIED 33% 33% 34% 32% 35% 36% 38% Average 3.8 3.8 3.8 3.8 3.9 3.9 4.3 3.5 5 - 1 - 41 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 40 Library Library ratings were generally positive and comparable to past years. About 63% of respondents report holding a library card. Differences are evident in card-holding among year-round residents (71%) and part-time residents (52%). Town of Vail Community Survey 2012 RRC Associates 41 Figure 15. Please rate your satisfaction with the following at the library (Random Link) Town of Vail Community Survey 2012 RRC Associates 42 Table 13 Please rate your satisfaction with the following at the library Satisfaction with Library Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year-round resident (11+ months/year) Part-time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Library collection (including magazines, books, audio and visual media) 1 NOT AT ALL SATISFIED 1% 0% 1% 1% 2% 2 1% 2% 1% 2% 3 16% 18% 12% 15% 17% 17% 100% 4 39% 41% 36% 43% 32% 25% 50% 5 VERY SATISFIED 43% 39% 50% 41% 46% 58% 50% Average 4.2 4.2 4.3 4.2 4.2 4.4 4.5 3 Library Story Hour 1 NOT AT ALL SATISFIED 1% 1% 1% 2 2% 1% 4% 2% 11% 3 23% 26% 19% 28% 22% 4 30% 33% 25% 29% 29% 22% 33% 100% 5 VERY SATISFIED 44% 38% 52% 39% 49% 67% 67% Average 4.1 4.1 4.3 4 4.3 4.4 4.7 4 Summer Reading Program 2 2% 2% 3% 3% 3 31% 31% 31% 32% 31% 33% 4 35% 37% 32% 37% 31% 33% 100% 5 VERY SATISFIED 32% 30% 35% 28% 38% 33% 100% Average 4 3.9 4 3.9 4.1 4 4 5 Databases 1 NOT AT ALL SATISFIED 1% 1% 1% 2 1% 1% 1% 3 28% 30% 25% 30% 25% 15% 100% 4 36% 35% 37% 36% 37% 38% 50% 5 VERY SATISFIED 35% 32% 38% 32% 38% 46% 50% Average 4 4 4.1 4 4.1 4.3 4.5 3 5 - 1 - 44 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 43 Table 13 (cont.) Satisfaction with Library Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year-round resident (11+ months/year) Part-time resident Employed in the town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Friendliness/ courtesy of library staff 1 NOT AT ALL SATISFIED 2% 1% 4% 3% 4% 2 3% 2% 4% 3% 1% 11% 3 9% 10% 8% 10% 11% 4 25% 27% 23% 27% 22% 19% 33% 50% 5 VERY SATISFIED 60% 60% 61% 56% 66% 67% 67% 50% Average 4.4 4.4 4.3 4.3 4.5 4.3 4.7 4.5 Library news releases 1 NOT AT ALL SATISFIED 2% 1% 2% 2% 2 2% 3% 1% 3% 3 26% 28% 24% 27% 26% 25% 50% 4 36% 38% 34% 35% 38% 60% 50% 5 VERY SATISFIED 34% 31% 39% 33% 36% 40% 25% 50% Average 4 3.9 4 3.9 4.1 4.4 4 4 Library website 1 NOT AT ALL SATISFIED 1% 1% 1% 1% 1% 2 1% 1% 1% 3 31% 33% 27% 34% 26% 23% 17% 4 33% 33% 33% 31% 31% 54% 50% 50% 5 VERY SATISFIED 35% 34% 37% 34% 41% 23% 33% 50% Average 4 4 4 4 4.1 4 4.2 4.5 Library mobile app 1 NOT AT ALL SATISFIED 1% 2% 2% 2 5% 4% 7% 4% 25% 100% 3 51% 53% 48% 54% 61% 25% 4 20% 18% 25% 20% 9% 50% 50% 5 VERY SATISFIED 22% 23% 20% 20% 30% 50% Average 3.6 3.5 3.6 3.5 3.7 3.3 4.5 2 5 - 1 - 45 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 44 SOURCES OF LOCAL INFORMATION Respondents were once again asked about how they receive information about the Town. Newspapers were highest rated with 84% citing this source. Online sources were also important (54%), followed by television (23%) and radio (9%). As summarized below, the differences in sources of information between year-round and part-time residents are evident. While both groups are generally similar, year-round residents are especially likely to cite the newspaper, while part-time residents are especially apt to identify online sources and Town of Vail Community Survey 2012 RRC Associates 45 Town of Vail Community Survey 2012 RRC Associates 46 The ratings of cell phone service vary significantly by part of Town as shown by the graph below. Relative problems are most evident in the three areas shown on the left side of the graph: Booth Falls and Bald Mountain Road areas; Buffehr Creek, Lionsridge, and the Valley; and Vail Village. Figure 16. How would you rate cell phone service at your residence or business in town? (All Respondents) There were a number of comments on cell phone service issues. In general, they reflect considerable frustration among residents, both year-round and part-time alike. The service from AT&T was called out specifically in a number of the comments and there were numerous requests to attend to this problem. The comments may be found by clicking here. (VIEW COMMENTS) 22% 18% 27% 0% 13% 11%12%13% 10%9% 0% 5% 2% 17% 26% 13% 0% 16% 11% 12% 5%9% 7% 35% 7% 7% 2.82 2.90 2.98 3.00 3.16 3.22 3.38 3.41 3.44 3.46 3.55 3.86 3.92 2 3 4 5 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Bu f f e h r C r e e k , L i o n s r i d g e , t h e V a l l e y Bo o t h F a l l s a n d B a l d M o u n t a i n R o a d a r e a s Va i l V i l l a g e Bo o t h C r e e k / A s p e n L a n e Ea s t V a i l Va i l C o m m o n s / S a f e w a y a r e a Ot h e r Ma t t e r h o r n , G l e n L y o n We s t V a i l ( n o r t h o f I 7 0 ) Li o n s h e a d Go l f C o u r s e Po t a t o P a t c h , S a n d s t o n e In t e r m o u n t a i n Percent Responding "2" Percent Responding "1" Average 5 - 1 - 48 6/5/2012 Town of Vail Community Survey 2012 RRC Associates 47 THE IMPACTS OF I-70 The survey contained a new question designed to gather some feedback on the impacts of I-70 and some preferences in terms of alternative actions. The question included some background information, followed by a specific set of actions. The wording wa s as follows: As you may be awDUHD´ELJLGHDµKDVEHHQSHULRGLFDOO\VXJJHVWHGWKDWZRXOGDWWHPSWWRDGGUHVVWKH impacts of I-70 as it passes through Vail. Recognizing that this idea has received no serious study to date and that any efforts to deal with the impacts will take many years, and would likely involve major costs (including the potential for a property tax increase), please provide some initial input to local decision makers. To eliminate or reduce traffic noise from I-70, which of the following long-term solutions do you support for exploratory consideration? (Check all that apply) Extensive sound walls to contain Interstate noise Covering portions of I- DOVRNQRZQDV³FXWand FRYHU´VROXWLRQ  A combination of sound walls and covering I-70 Relocating I-70 in a tunnel, removing it altogether from the community Live with the condition, increasing enforcement of speed limits No opinion The survey found that most respondents had an opinion (92%) about the choices for dealing with I-70. Interestingly, the responses from year-round and part-time residents and on the Random Link and Open Town of Vail Community Survey 2012 RRC Associates 48 Figure 17. To eliminate or reduce traffic noise from I-70, which of the following long-term solutions do you support for exploratory consideration? (All Respondents) Table 17 I-70 Solutions To eliminate or reduce traffic noise from I-70, which of the following longer-term solutions do you support for exploratory consideration? Total All Sources Survey Version Which of the following best describes you? Random Link Open Link Year- round resident (11+ months/ year) Part- time resident Employed in the Town of Vail but don't live there Get mail in the town but don't live or work there Non- resident owner of business/ commercial property Live with the condition, increasing enforcement of speed limits 37% 38% 37% 36% 40% 40% 25% 50% A combination of sound walls and covering I-70 29% 30% 29% 30% 32% 21% 38% 25% Covering portions of I-70 (also known as cut and cover solution) 28% 28% 27% 29% 25% 30% 38% Extensive sound walls to contain Interstate noise 23% 21% 27% 24% 27% 19% Relocating I-70 in a tunnel, removing it altogether from the community 23% 27% 18% 25% 25% 12% 13% No opinion 8% 8% 10% 8% 7% 12% 13% 25% 5 - 1 - 50 6/5/2012 1 Community Survey 2012 SUMMARY OF RESULTS: RANDOM LINK First, a few questions about the general state of Vail… 1. Would you say that things in the town of Vail are going in the right direction, or have they pretty seriously gotten off on the wrong track? 2012 (n=412) 2010 (n=521) 2007 (n=397) 2005 (n=404) 70% 58% 58% 70% Right direction 18 28 30 19 Wrong track 13 14 12 10 Don’t know In a few words, why do you feel that way?_____________________________________________________________________ (Please attach an additional sheet of paper with your comments if needed on any survey question.) 2. Over the past two years has the sense of community within the town improved, gotten worse or stayed the same? 2012 (n=411) 2010 (n=369) 2007 (n=400) 2005 (n=404) 18% 9% 14% 17% Improved 16 26 36 21 Gotten worse 50 54 45 53 Stayed the same 16 11 5 8 Don’t know/no opinion Do you have any comments or suggestions on your response?_____________________________________________________ 5 - 1 - 51 6/5/2012 2 COMMUNITY ISSUES 3. The Vail Town Council and staff value community input to help understand your priorities. For each area listed below, indicate the level of priority you believe is appropriate. (Use a 1 to 5 scale where 1=Not a Priority, 3=Somewhat, 5=High Priority.) The Vail Town Council’s Long-Term Goals and Initiatives for 2012 through 2022 focus on four primary areas: x Improve economic vitality x Grow a balanced community (address the current and desired demographics for the town) x Improve the quality of the experience x Develop future leadership Do you have any specific comments or suggestions for the Council regarding these goals? ______________________________________________________________________________________________ 5 - 1 - 52 6/5/2012 3 EVENTS Vail has developed a wide variety of events in all seasons that have become part of our community culture. Our events now include concerts, festivals, athletic events and other activities. 4. In general, how would you describe the experience that events in Vail create for you and your guests? VERY VERY NEGATIVE NEUTRAL POSITIVE mean n 2 2 12 27 57 4.4 379 Do you have any comments on your response concerning events? _______________________________________________________________________________________________ 5. What are your three favorite events in Vail? _____________________________________________ _____________________________________________ _____________________________________________ 6. Please rate your satisfaction with the following aspects of town-wide events. Quantity of events – are there: 12% Too few events 81 About the right number 8 Too many events n=353 NOT AT ALL VERY SATISFIED SATISFIED mean n The overall quality of events in Vail 1% 3 13 46 36 4.1 355 Ease of access to event venues (Ford Park Fields, Gerald R. Ford Amphitheater, Vail Village, Lionshead, Dobson Arena) 4 11 25 34 26 3.7 364 Parking availability during special events 12 24 33 21 11 3.0 349 Frontage Road express bus to transport event-goers between Lionshead, Vail Village and Ford Park in the summer 6 7 26 29 32 3.7 283 How do you typically access events in Vail? 30% Public transportation 26 Walking or cycling 44 Driving n=366 Do you have any further comments on events in Vail?_____________________________________________________ 7. What do you believe is the town-wide economic impact of events in Vail? VERY VERY NEGATIVE NEUTRAL POSITIVE mean n 0% 2 9 38 50 4.4 352 FEES AND TAXES 8. Which statement below best describes your opinion about the relationship between taxes/fees and the services that are provided by the Town of Vail? 61% I am satisfied with the current level of taxes and services 10 I am willing to pay more taxes to get more services 15 I feel that I pay too much for the services I receive 6 I am willing to accept service reductions if it means lower taxes 8 I have no opinion n=371 (If satisfied or willing to pay more) Are there specific types of services, programs or amenities you would like to see expanded or improved?____________________________ ____________________________________ 5 - 1 - 53 6/5/2012 4 THE ENVIRONMENT 9. Please rate the amount of emphasis that is being placed on the following in Vail. (Use a scale from 1 to 5 where 1 means “Much Too Little Emphasis” and 5 means “Far Too Much Emphasis.”) MUCH TOO ABOUT FAR TOO LITTLE RIGHT MUCH mean n Overall attention to the threat of wildfire from beetle-killed trees through forest management such as cutting and removing trees, and forest regeneration 15% 27 54 3 1 2.5 330 Enforcement of the dead tree removal ordinance to address the beetle infestation 17 26 51 4 1 2.4 304 Addressing energy consumption 5 25 53 8 8 2.9 300 Gore Creek water quality 11 27 55 6 1 2.6 286 10. Please indicate the level of priority you would like to see placed on the following: NOT A HIGH PRIORITY NEUTRAL PRIORITY mean n Emphasis on “zero waste” (composting/recycling, etc.) at community events 12% 10 21 29 29 3.5 357 A plastic bag initiative to ban the bags in grocery stores (restrictions would apply at 2 grocery stores and shoppers could bring their own bags and/or would have an option to purchase a paper bag for 20 cents) 37 9 17 16 21 2.8 362 Any comments on your responses to Questions 9 and 10?______________________________________________________ ___________________________________________________________________________________________________ TOWN SERVICES The Community Development Department provides planning, design review, environmental programs, and building and restaurant inspection services. 11. Have you used the services of the Community Development Department within the past 12 months? 21% Yes 79 No (GO TO Q. 14) n=360 12. (IF YES) How did you access their services? (Check all that apply) n=76 23% Website 43 Telephone 62 Walk in to office 19 Attend a meeting 12 Other:______________________________________ 5 - 1 - 54 6/5/2012 5 13. Please rate your satisfaction with the following aspects of the Community Development Department. Any comments on your response?_____________________________________________________________________ 5 - 1 - 55 6/5/2012 6 The Public Works Department provides maintenance of public areas including parks, buildings, roads and village areas. 14. Rate your satisfaction with Public Works services in the Town of Vail: Any comments on your response?____________________________________________________________________ 5 - 1 - 56 6/5/2012 7 Public Safety 15. Have you utilized Vail Fire for any service, inspection or emergency within the past 12 months? n=354 15% Yes 85 No (GO TO Q. 17) 16. Please rate your satisfaction with the following aspects of Fire Services in the town of Vail. Any comments on your response?_____________________________________________________________________ 5 - 1 - 57 6/5/2012 8 17. Please rate your satisfaction with the following aspects of Police Services in the town of Vail. Any comments on your response?______________________________________________________________________ 5 - 1 - 58 6/5/2012 9 Parking and Bus Service 18. When you visit Vail Village/Lionshead, what is your first choice for parking for the following purposes? (Check one only for each, as applicable) FOR SHOPPING FOR WORK FOR SKIING I PREFER I PREFER I PREFER Lionshead Parking Structure 14% 18% 23% Vail Village Parking Structure 69 28 35 Cascade Area 1 3 North Frontage Road in West Vail (Safeway area) 4 2 2 Donovan Park 1 1 Other: ______________________ 12 52 37 n=341 258 320 19. Why do you prefer that location to enter the mountain for skiing? n=325 3% Variety of shops and restaurants 9 Overall experience 13 Ski lockers 20 Shorter walking distance 28 Gets to parts of the mountain I prefer to ski 28 Other: _________________________ 20. Do you own a parking pass or value card this season? 76% No (GO TO Q. 22) 24 Yes: 4% Gold pass 20 Blue pass 4 Green pass 4 Pink pass 68 Value card 21. How satisfied are you with the benefits of your pass this year? NOT AT ALL VERY SATISFIED SATISFIED mean n= 5% 8 29 25 33 3.7 80 Any comments on your response?______________________________________________________________________ 5 - 1 - 59 6/5/2012 10 22. Please rate your satisfaction with public parking services in Vail. Any comments on your response?_______________________________________________________________________ 23. How many times per month do you use TOV bus service? 15.3 times per month in winter, n=330 7.7 times in summer, n=309 Are there any specific concerns or considerations that reduce your use of bus services? _________________________________________________________________________________________________ 5 - 1 - 60 6/5/2012 11 24. Please rate your satisfaction with bus service. Any comments on your response?________________________________________________________________ Library Services The Vail Public Library offers access to information resources of many types to serve the needs of Vail's guests, residents, businesses and schools. 25. Do you hold a library card in the Town of Vail? n=356 63% Yes 37 No 26. What typically brings you to the library? (Check the two most important categories) n=257 90% Materials (books, magazines, audio CDs, DVDs) 15 Computers 10 Wireless access 11 Children’s story hours/programs 9 Programs for adults/families 27. How frequently do you use the library? 2.5 times per month, n=304 5 - 1 - 61 6/5/2012 12 28. What do you like best about your experiences at the library?___________________________________________________ 29. Please rate your satisfaction with the following: Any comments on your response?___________________________________________________________________________ 5 - 1 - 62 6/5/2012 13 SOURCES OF LOCAL INFORMATION 30. How do you receive information about the Town of Vail that may be of interest to you? (Check all that apply) n=348 54% Online 84 Newspaper 9 Radio 23 Television 11 Other 31. Do you subscribe to e-services provided by the Town of Vail? n=61 81% No (GO TO Q. 33) 19 Yes (which ones?) 62% Special event info 63 News releases 23 Sales tax info 26 Library updates 17 Art in Public Places 29 Community Development Department updates 33 Meeting agendas 10 Twitter 5 Other__________________________________________ 32. How satisfied are you with the e-services provided by the Town of Vail? NOT AT ALL VERY SATISFIED SATISFIED mean n 2% 2 14 40 42 4.2 61 33. As you may be aware, a “big idea” has been periodically suggested that would attempt to address the impacts of I-70 as it passes through Vail. Recognizing that this idea has received no serious study to date and that any efforts to deal with the impacts will take many years, and would likely involve major costs (including the potential for a property tax increase), please provide some initial input to local decision makers. To eliminate or reduce traffic noise from I-70, which of the following long-term solutions do you support for exploratory consideration? (Check all that apply) n=349 21% Extensive sound walls to contain Interstate noise 28 Covering portions of I-70 (also known as “cut and cover” solution) 30 A combination of sound walls and covering I-70 27 Relocating I-70 in a tunnel, removing it altogether from the community 38 Live with the condition, increasing enforcement of speed limits 8 No opinion Do you have any additional comments on this topic? __________________________________________________________ Please provide the following demographic information. Remember that all responses remain strictly confidential and are reported only in group format. 34. What is the ZIP code of your primary residence? _________________________________ 35. Which of the following best describes you? n=354 53% Year-round resident (11+ months/year) 37 Part-time resident (what is the ZIP Code of your primary residence? ___________________) 6 Employed in the town of Vail but don’t live there 2 Get mail in the town but don’t live or work there 1 Non-resident owner of business/commercial property 5 - 1 - 63 6/5/2012 14 36. Which of the following best describes your employment status? n=355 41% Work 8 months or more a year in the local area (Vail Valley) 6 Work 7 or fewer months a year in the local area (Vail Valley) 22 Currently employed outside of the local area (work on Front Range, out of state, etc.) 21 Not employed: retired 1 Not employed: unemployed and/or looking for work 3 Not employed: homemaker 6 Other:____________________________________________________ 37. Is your residence (either year-round or seasonal) within the town of Vail? n=354 82% Yes 18 No If yes, where? n=289 25% East Vail 2 Booth Falls and Bald Mountain Road areas Booth Creek/Aspen Lane 3 Golf Course 8 Vail Village 6 Lionshead 14 Potato Patch, Sandstone 6 Buffehr Creek, Lionsridge, the Valley 2 Vail Commons/Safeway area 17 West Vail (north of I-70) 4 Matterhorn, Glen Lyon 8 Intermountain Not a resident of the town of Vail 5 Other______________________________ 38. Do you own or rent your residence? n=346 87% Own 12 Rent 1 Other (specify)_________________________________________ 39. How would you rate cell phone service at your residence or business in town? POOR AVERAGE EXCELLENT mean n 13% 12 29 21 23 3.3 343 OR 1% Service not available Don’t have a cell phone Any comments on your response?__________________________________________________________________________ 40. How long have you lived within the town of Vail (or owned property if a non-resident)? n=280 3% Less than 1 year 13 1-5 years 25 6-15 years 52 More than 15 years 8 Not applicable 41. (IF RESIDENT) Do you own or operate a business within the town of Vail? 16% Yes 84 No n=280 42. Are you a registered voter in Vail? 51% Yes 49 No n=338 43. Which of these categories best describes your household status? n=352 19% Single, no children 24 Couple, no children 24 Household with children living at home 32 Empty-nester, children no longer at home 44. Are you: n=347 52% Male 48 Female 45. In what year were you born? Average age=55.6, n=330 THANK YOU FOR YOUR PARTICIPATION IN OUR CONTINUING EVALUATION PROGRAM. If you would like to receive updates and information from the Town of Vail, please include your email address: _________________________________________________________________________________________________ 5 - 1 - 64 6/5/2012 5 - 2 - 1 6/5/2012 5 - 2 - 2 6/5/2012 5 - 2 - 3 6/5/2012 5 - 2 - 4 6/5/2012 5 - 2 - 5 6/5/2012 5 - 2 - 6 6/5/2012 5 - 2 - 7 6/5/2012 5 - 2 - 8 6/5/2012 5 - 2 - 9 6/5/2012 5 - 2 - 10 6/5/2012 5 - 2 - 11 6/5/2012 5 - 2 - 12 6/5/2012 5 - 2 - 13 6/5/2012 5 - 2 - 14 6/5/2012 5 - 2 - 15 6/5/2012 5 - 2 - 16 6/5/2012 5 - 2 - 17 6/5/2012 5 - 2 - 18 6/5/2012 5 - 2 - 19 6/5/2012 5 - 2 - 20 6/5/2012 5 - 2 - 21 6/5/2012 5 - 2 - 22 6/5/2012 5 - 2 - 23 6/5/2012 5 - 2 - 24 6/5/2012 5 - 2 - 25 6/5/2012 5 - 2 - 26 6/5/2012 5 - 2 - 27 6/5/2012 5 - 2 - 28 6/5/2012 5 - 2 - 29 6/5/2012 5 - 2 - 30 6/5/2012 5 - 2 - 31 6/5/2012 5 - 2 - 32 6/5/2012 5 - 2 - 33 6/5/2012 5 - 2 - 34 6/5/2012 5 - 2 - 35 6/5/2012 5 - 2 - 36 6/5/2012 5 - 2 - 37 6/5/2012 5 - 2 - 38 6/5/2012 5 - 2 - 39 6/5/2012 Questions? 5 - 2 - 40 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Resolution No. 20, Series of 2012, A Resolution Authorizing the Town Manager to Sign a Wireless Communications and License Agreement Between the Town of Vail and NewPath Networks, LLC; and Setting Forth Details in Regard Thereto. PRESENTER(S): Ron Braden ACTION REQUESTED OF COUNCIL: Approve, amend or deny Resolution No. 20, Series of 2012. BACKGROUND: The Town Council wishes to enter into a wireless communications and license agreement with NewPath Networks, LLC to enhance the wireless communications services and to avoid unnecessary disruption and administrative burdens throughout the town. STAFF RECOMMENDATION: Approve, amend or deny Resolution No. 20, Series of 2012. ATTACHMENTS: Resolution No. 20, Series of 2012 6/5/2012 Resolution No. 20, Series 2012 RESOLUTION NO. 20 Series of 2012 A RESOLUTION AUTHORIZING THE TOWN MANAGER TO SIGN A WIRELESS COMMUNICATIONS AND LICENSE AGREEMENT BETWEEN THE TOWN OF VAIL AND NEWPATH NETWORKS, LLC; 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”); WHEREAS, the members of the Town Council of the Town (the “Council”) have been duly elected and qualified; WHEREAS, the Town wishes to enter into a Wireless Communications and License Agreement (the “Agreement”) with NewPath Networks, LLC (NPN) to enhance the wireless communications services and to avoid unnecessary disruption and administrative burdens throughout the town; WHEREAS, NPN proposes to occupy a portion of certain of Town structures and property for the purposes of creating a wireless communications network available for hire from NPN by telecommunications providers; and WHEREAS, approval of Resolution 20, Series of 2012 is required to enter into the Agreement. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council hereby authorizes the Town Manager to enter into the Agreement with NPN on behalf of the Town 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 5th day of June, 2012. _________________________ Andrew P. Daly, Town Mayor ATTEST: _____________________________ Lorelei Donaldson, Town Clerk 6 - 1 - 1 6/5/2012 C:\Users\GSutter\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\C1VYOJP8\Vail Wireless Communication and License Agreement (Vail RL05-30-2012).docxS:\Legal\Real Estate Agreements\WEST Prospects\Vail\Vail Wireless Communications and License Agreement (04-25-12).docx Formatted: Font: 9 pt, Do not check spelling or grammar Wireless Communications and License Agreement by and between Town of Vail and NewPath Networks, LLC Dated _____________ ____, 2012 6 - 1 - 2 6/5/2012 C:\Users\GSutter\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\C1VYOJP8\Vail Wireless Communication and License Agreement (Vail RL05-30-2012).docxS:\Legal\Real Estate Agreements\WEST Prospects\Vail\Vail Wireless Communications and License Agreement (04-25-12).docx Formatted: Font: 9 pt, Do not check spelling or grammar TABLE OF CONTENTS 1. Definitions .......................................................................................................................................................... 1 2. Grant of License ............................................................................................................................................... 4 3. Term ................................................................................................................................................................. 65 4. Consideration .................................................................................................................................................. 65 5. Construction and Operation of the System ................................................................................................... 6 6. Removal of Attachments ................................................................................................................................ 87 7. Indemnification ................................................................................................................................................. 8 8. Insurance: Casualty ....................................................................................................................................... 98 9. Eminent Domain ............................................................................................................................................. 98 10. Default ................................................................................................................................................................ 9 11. Assignment .................................................................................................................................................... 109 12. Notice .............................................................................................................................................................. 109 13. Miscellaneous .............................................................................................................................................. 1110 SCHEDULES: Schedule 1 System Description Schedule 1.1 Hub Site/Node Location Form Schedule 2 Property Schedule 3 Existing Agreements Schedule 4 Licensee’s Fiber Made Available to Licensor EXHIBITS: EXHIBIT A Application and Additional License EXHIBIT B Notification of Removal by Licensee EXHIBIT C System Specifications EXHIBIT D Fiber Network Standards Field Code Changed 6 - 1 - 3 6/5/2012 Wireless Communications and License Agreement Page 1 of 12 WIRELESS COMMUNICATIONS AND LICENSE AGREEMENT THIS WIRELESS COMMUNICATIONS AND LICENSE AGREEMENT (this “Agreement”), in entered into as of the date fully executed below (“Effective Date”), by and between the Town of Vail, a Colorado home rule municipality (“Licensor”), and NewPath Networks, LLC, a New Jersey limited liability company (“Licensee”). RECITALS A. WHEREAS, Licensor is the owner of, with certain limited exceptions, the land and premises identified in Schedule 22 hereto, including certain buildings and grounds (the “Property”), which Property includes buildings, utility infrastructure, signage, light standards and other improvements (the “Structures”); and B. WHEREAS, Licensor desires (i) to enhance the wireless communications services available at the Property through a more comprehensive solution on the conditions agreed to herein; (ii) to rely on the resources and experience of Licensee to manage access to the Property and the Structures by the use of common facilities for all Wireless Carriers to minimize redundant use of the structures and minimize the visual impact of such facilities; and (iii) to avoid unnecessary disruption and administrative burdens for Licensor’s business and operations; and C. WHEREAS, Licensee proposes to occupy a portion of certain of Licensor’s Structures and Property for the purposes of creating a wireless communications network available for hire from Licensee by telecommunications providers; and D. WHEREAS, Licensor is authorized to grant certain Licenses to Licensee to make Attachments to the Structures and to occupy a certain portion of the Property in accordance with the terms of this Agreement. NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein contained, the parties hereto do hereby covenant and agree as follows: AGREEMENT 1. Definitions. For all purposes of this Agreement, the following terms shall be defined as follows: a. Additional License shall mean any agreement to Attach to additional Structures and/or use of a portion of the Property, as the Parties may reasonably agree during the Term upon execution of a form of application and license attached as Exhibit AA hereto. b. Additional Services shall have the meaning set forth in Section 2.e. c. Agent shall mean any directors, trustees, officers, employees, affiliates, agents, assigns, successors, representatives, contractors or subcontractors of a Party. d. Agreement shall have the meaning set forth in the Preamble. e. Alternate Location shall have the meaning set forth in Section 6.b. f. Attach shall mean to install, connect, or construct Attachments on, at or in a Structure pursuant to a License. g. Attachments shall include wire, fiber optic, telecommunications and/or coaxial cable, Nodes, and other wireless communications equipment attached and maintained upon a Structure pursuant to a License. Formatted: Font: Not Bold, No underline Formatted: Font: Not Bold, No underline 6 - 1 - 4 6/5/2012 Wireless Communications and License Agreement Page 2 of 12 h. Claim shall mean shall mean any and all claims of liability or loss from personal injury or property damage, and related damages, fines, judgments, penalties, costs, liabilities or losses (including any and all sums paid for settlement of claims, attorneys’ fees, and consultants’ and experts’ fees) arising from a Party’s violation of this Agreement, including reasonable attorneys’ fees and other direct costs of legal defense. i. Cure Period shall have the meaning set forth in Section 10. j. DAS shall have the meaning set forth in the “System” definition. k. Defaulting Party shall have the meaning set forth in Section 10. l. Effective Date shall mean the date set forth in the Preamble. m. Environmental Law shall mean any Law regulating the presence of Hazardous Materials on or relating to the Property, including the Solid Waste Disposal Act, 42 U.S.C. § 6901, et seq.; the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. § 9601, et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986; the Federal Water Pollution Control Act, 33 U.S.C. § 1251, et seq.; the Clean Air Act, 42 U.S.C. § 7401, et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601, et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f, et seq.; or and state or local Law analogous thereto. n. Existing Agreements shall mean the agreements identified in Schedule 33 hereto, each between a Wireless Carrier and Licensor in full force and effect as of the Effective Date for the operation of Wireless Carrier facilities on the Property. o. Fiber Network shall mean collectively the (i) dark fiber capacity on Licensor’s fiber optic network installed throughout the Property and dedicated for Licensee’s use through a License (“Licensor’s Fiber”) or (ii) dark fiber capacity on fiber optic network installed by Licensee throughout the Property and dedicated for Licensor’s use as identified on Schedule 4 hereto (“Licensee’s Fiber”). p. Fiber Network Standards are set forth in Exhibit DD hereto. p.q. Force Majeure shall mean any event beyond the control of either Party and which is relied upon by either Party as justification for delay in, or as excuse from complying with, any obligation required of the Party under this Agreement, including, but not limited to: (i) an act of God, war, terrorism, landslide, lightning, earthquake, fire, explosion, storm, flood or similar occurrence; (ii) any act of any federal, state, county or local court, administrative agency or governmental office or body that stays, invalidates or otherwise affects this Agreement, the operation of, or any permits or licenses associated with or related to, the obligations hereunder; (iii) the adoption or change (including a change in interpretation or enforcement) of any federal, state, county or local law, rule, permit, regulation or ordinance after the date of execution of this Agreement, applicable to the obligations hereunder, including, without limitation, such changes that have a substantial or material adverse effect on the cost of performing the obligations herein; (iv) any work stoppages, strikes, picketing, labor dispute, or similar activities at the Property; (v) the institution of a legal or administrative action or similar proceeding by any person or entity that delays or prevents any aspect of the obligations to be performed by either Party hereunder q.r. Government Authority shall mean the United States of America, the State of Colorado, and the Town of Vail, and any other entity exercising executive, legislative, judicial, regulatory or administrative functions of, over, or pertaining to the System or the Property. r.s. Government Permits shall mean all certificates, permits or other approvals which may be required from any Government Authority necessary for the construction and operation of the System. Formatted: Font: Not Bold, No underline Formatted: Font: Not Bold, No underline 6 - 1 - 5 6/5/2012 Wireless Communications and License Agreement Page 3 of 12 s.t. Hazardous Materials shall mean (i) any explosive or radioactive substances or waste, petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls; (ii) any ‘hazardous substances,’ ‘extremely hazardous substance,’ ‘hazardous chemical,’ ‘toxic chemical,’ ‘hazardous waste’ or ‘pollutant,’ each as defined under Environmental Law; and (iii) any substance or waste regulated under any Environmental Law. t.u. Hub Site shall mean the exterior or interior space licensed by Licensor to Licensee: (i) for the installation of Licensee’s equipment for the operation and control of the System; and (ii) to be sublicensed to tenant Wireless Carriers for the placement and operation of their equipment required for use of the System. u.v. Initial License shall have the meaning set forth in Section 2. v.w. Initial Term shall have the meaning set forth in Section 3. w.x. Laws shall mean any administrative, judicial, legislative or other statute, law, ordinance, Government Permit, regulation, rule, order, decree, written pronouncement, writ, award or decision of any Government Authority. x.y. License shall mean the right to Attach Attachments to Radio Space to a Structure for operation of the System. y.z. Licensed Structure shall mean a Structure upon which an Attachment has been made and is maintained thereupon by Licensee pursuant to this Agreement. z.aa. Licensee shall have the meaning set forth in the Preamble. aa.bb. Licensee’s Fiber shall have the meaning set forth in the “Fiber Network” definition. bb.cc. Licensor shall have the meaning set forth in the Preamble. cc.dd. Licensor’s Fiber shall have the meaning set forth in the “Fiber Network” definition. dd.ee. Node shall mean, alternatively, (i) a radio access node of the System, consisting of an antenna, equipment box, cabling connecting the antenna and equipment box, and related attachments; or (ii) an in-building system. ee.ff. Non-Conflicting Agreement shall mean any agreement (except for the Existing Agreements) between a Wireless Carrier and Licensor in full force and effect as of the Effective Date for the operation of Wireless Carrier facilities on the Property. ff.gg. Non-Defaulting Party shall have the meaning set forth in Section 10. gg.hh. Parties or Party shall mean Licensor and Licensee. hh.ii. Person shall mean any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. ii.jj. Primary Purpose shall have the meaning set forth on Schedule 22 hereto. jj.kk. Property shall have the meaning set forth in the Recitals. kk.ll. Radio Space shall be the locations on, in or at a Structure occupied by any Attachments for operation of the System. ll.mm. Renewal Term shall have the meaning set forth in Section 3. Formatted: Font: Not Bold, No underline 6 - 1 - 6 6/5/2012 Wireless Communications and License Agreement Page 4 of 12 mm.nn. RF shall mean radio frequency energy, whether or not associated with operation of the System. nn.oo. Structure Manager means Licensor’s designated manager for managing and administering, on behalf of Licensor, the Attachments, Licenses, and administration of visual impact and aesthetics provisions of this Agreement for a particular property. oo.pp. Structure shall have the meaning set forth in the Recitals. pp.qq. System shall mean collectively the Wi-Fi Network and the neutral access distributed antenna system (“DAS”) (indoor and outdoor) constructed by Licensee under the License for the purpose of providing RF coverage in and about the Property, including Licensee’s equipment at the Hub Site, and all Attachments, power lines, coaxial, fiber optic and telecommunications cables, and other associated equipment located throughout the Property and at the Hub Site, and operated by Licensee on a commercial, for-profit basis to provide services to Wireless Carriers. qq.rr. System Specifications means the specifications outlined in Exhibit CC. rr.ss. Term shall have the meaning set forth in Section 3. ss.tt. Term Commencement Date shall mean the date that Licensee commences construction of the System (as confirmed in writing by the Parties). tt. Wi-Fi Network shall mean a Wi-Fi network operating in frequencies not licensed by the Federal Communications Commission (utilizing 802.11 a, b, g, and n, and any other available frequencies, including the 2.4 and 5 GHz bands) to provide wireless broadband access to Licensor, its employees, invitees and guests. uu. Wireless Carrier shall mean (i) a wireless services provider offering communications services to the public, including cellular, Personal Communications Service (“PCS”), specialized mobile radio (“SMR”), paging, wireless broadband, telematics, and wireless data carriers or (ii) an entity providing network capacity or services on a wholesale basis, including to wireline and wireless communication service providers, cable operators, device manufacturers, web players or content providers. Licensor shall not be considered a Wireless Carrier. 2. Grant of License. Licensor agrees, subject to the conditions in this Agreement, that it will permit Licensee (a) to place and maintain Attachments within the Radio Space designated on the Structures in order to operate its System as set forth in Schedule 11 hereto, including the construction of the Hub Site and (b) if applicable to use Licensor’s Fiber or related conduit in operation of the System as set forth in Schedule 11 hereto (the “Initial License”, collectively with all Additional Licenses, the “License”). Licensee agrees that its Attachments will be used only in connection with Licensee's construction, operation and maintenance of the System and for no other purpose. Licensee expressly recognizes that the Structures are used and are to continue to be used by Licensor for the Primary Purpose, and that Attachments are and will continue to be secondary and subordinate to Licensor’s use of the Structures. Licensee shall be solely responsible for obtaining other required attachment or license agreements for Structures which may be located on Licensor's property, but not owned by Licensor. a. Additional Licenses. Licensee shall have the right to (i) attach to any additional Structure; or (ii) add additional Attachments to any Structure; or use additional portions of Licensor’s Fiber, upon grant of an Additional License (substantially in the form attached hereto as Exhibit AA hereto) by Licensor or by the Structure Manager on behalf of Licensor. Each Additional License shall identify the location of the Attachments authorized in the Additional License. Subject to Section 2.b below, Licensee shall have priority right to the use of the Structures for purpose of operating a System on the Property and Licensor shall not permit the installation or operation of any other services which cause material and harmful interference to the System. b. Limitations. Regardless of its duration, Licensee's use of a Structure shall not vest in Licensee any ownership rights in the Structure. The right to Attach herein granted shall at all times be subject to pre-existing contracts and arrangements, written notice of which Licensor provides to Formatted: Font: Not Bold, No underline Formatted: Indent: Left: 1", No bullets or numbering Formatted: Font: Not Bold, No underline Formatted: Font: Not Bold, No underline Formatted: Font: Not Bold, No underline 6 - 1 - 7 6/5/2012 Wireless Communications and License Agreement Page 5 of 12 Licensee in advance of issuing a License. Nothing herein contained shall be construed to compel Licensor to maintain any of its Structures for a period longer than is necessary for its Primary Purpose. In addition, notwithstanding anything in this Agreement to the contrary, Licensee's right to Attach to any Structure shall at all times be subject to Licensor's police power, and Licensee acknowledges that Licensor cannot waive or limit such police power by entering into this Agreement. c. Consents. Licensor represents that it is authorized to grant Licenses to Licensee to Attach and that Licensor has authorized the Structure Manager to grant Licenses on its behalf consistent with the terms of this Agreement. With respect to any Structures to which Licensor's grant of a License to Licensee requires third party consent, Licensor shall use reasonable efforts to obtain such consent, provided that such reasonable efforts are at no cost to Licensor. Licensee will be responsible at its expense for securing all Government Permits necessary for the installation and operation of the System. To the extent that any Governmental Permits are subject to Licensor's approval, nothing in this Agreement shall require Licensor's approval or issuance of such Governmental Permits, or imply that Licensor will approve or issue such Governmental Permits. Licensor shall process such Governmental Permit applications as any other permit applications are processed in the normal course of business. d. Preferred Provider. Licensor acknowledges that it intends each System to replace coverage currently provided at each Property by certain Wireless Carriers through the Existing Agreements and that Licensee has entered into this Agreement to construct and operate the System in reliance upon Licensor’s covenants contained in this Section 2. Therefore, during the Term, except as provided below, Licensor shall take no affirmative actions to renew or extend any of the Existing Agreements, nor execute any amendments or other documents to extend the term of any Existing Agreement beyond its currently effective final expiration date, unless specifically requested to do so by an existing tenant. Without limiting the obligations above, Licensor reserves the right (a) to continue the Existing Agreements until current term expiration; and (b) to maintain, amend, renew or extend any Non-Conflicting Agreement. The DAS shall not cause interference to any networks or network facilities utilized by Licensor, and if any such interference is identified, Licensee shall take reasonable steps to correct such interference within a reasonable period of time. At such time as Licensor enters into any agreement with any other Person utilizing municipal facilities (including the Structures) or municipal rights of way for deployment of a wireless communications network, the Licensor shall impose similar non interference requirements, including preventing material and harmful interference with the System. Notwithstanding anything to the contrary in this Section 2, Licensor expressly reserves its police power, and nothing in this Section 2 shall limit Licensor’s police power. e. System Expansion. Licensor and Licensee acknowledge and agree that increased demand, changes or advances in wireless technology, among other reasons, during the Term may cause Licensor to desire expansion of the System or the provision of additional wireless network coverage on the Property (collectively, “Additional Services”), and Licensee shall have the non- exclusive right to provide the Additional Services as set forth herein. In the event Licensor desires Additional Services (whether such intent is initiated from its own request or in response to a request from a Wireless Carrier to use space on the Property), it shall provide a written proposal to Licensee setting forth its coverage, technology and other objectives. Licensee shall provide a written proposal for the provision of Additional Services within sixtyninety (6090) days following receipt of notice from Licensor. In the event that Licensor accepts Licensee’s proposal (as may be modified by mutual consent), the Parties agree to execute an Application and Additional License in substantially the form set forth in Exhibit AA (as mutually agreed) describing the Additional Services. In the event that (i) Licensee declines to provide the Additional Services, or (ii) following good faith negotiations, Licensor and Licensee cannot reach agreement on the provision of Additional Services within ninety (90)one hundred eighty (180) days following delivery of the proposal, then Licensor shall be free to enter into agreements with any third party for Additional Services but similar to that set forth in its original request or initial Licensee’s proposal. Notwithstanding the provisions of this section, Licensor shall have no obligation Formatted: Font: Not Bold, No underline 6 - 1 - 8 6/5/2012 Wireless Communications and License Agreement Page 6 of 12 whatsoever to allow any Additional Services and Licensee shall have no obligation to effect or right to require such expansion. 3. Term. This Agreement shall commence on the Effective Date and shall continue in effect for a period of tenfifteen (105) years following the Term Commencement Date (the “Initial Term”) unless previously terminated pursuant to the provisions herein. The Agreement shall automatically renew for twohree (23) additional five (5) year terms (each a “Renewal Term”, collectively with the Initial Term, the “Term”), unless Licensee provides written notice to Licensor of its intent not to renew not less than one hundred eighty (180) days prior to the expiration of the then-current Term, provided, however, that if on such date there is not at least two (2) Wireless Carriers then paying recurring fees and operating on all or at least fifty-one percent (51%) of the System, then the right not to renew shall be mutual among Licensee and Licensor. The term of any License of a Structure shall, unless previously terminated pursuant to the provisions of this Agreement, continue in effect until the end of the Term. 4. Consideration. a. In consideration for Licensor’s entering into this Agreement and granting the Licenses to Licensee throughout the Term, Licensee shall provide the following at no cost to Licensor: i. the installation, operation and maintenance of the indoor DAS part of the DAS at the Vail Transportation Center, described in more detail in Schedule 1, to be installed as soon as practical and operational before October 1, 2012 subject to Licensee’s obtaining all Government Permits pursuant to the last sentence of Section 2.c. ii. the construction of the remaining portion of the DAS, including the enhancement of existing cellular and data services available for licensed carriers operating in this market, through the installation of the DAS described in more detail in Schedules 1 and 1.1, including cellular base nodes (or macro sites), with the prior approval of locations and specifications by Licensor. iii. a Wi-Fi Network described in Schedule 1.1. iv. In consideration for Licensor’s entering into this Agreement, Licensee shall make an initial payment to Licensor of Five Thousand Dollars ($5,000), due and payable within thirty (30) days following the Effective Date. a. Licensee agrees to reimburse Licensor for any documented increase in real estate or personal property taxes, or any other taxes or fees levied against the Property that are directly attributable to the improvements constructed by Licensee. Licensor agrees to provide Licensee any documentation evidencing the increase and how such increase is attributable to Licensee’s use. Licensee reserves the right to challenge any such assessment, and Licensor agrees to cooperate with Licensee in connection with any such challenge; provided however, that any costs incurred by Licensor in providing such cooperation shall be reimbursed by Licensee. 5. Construction and Operation of the System. Licensee shall commence the construction of the Indoor DAS system at the Vail Transportation Center described in Section 4.a.i upon the execution of this Agreement, which system will be ready for use by Wireless Carriers by October 31, 2012, subject to events of force majeure or changes requested by Licensor. However, Licensee will not commence construction of the Wi-Fi Network or additional Nodes for the System on the Property until it receives a binding contractual commitment from at least one (1) Wireless Carrier to use the System. Licensee will endeavor, using commercially reasonable efforts but subject to events of Force Majeure or changes requested by Licensor, that the Wi-Fi Network will be operational by October 31, 2013 and the additional Nodes for the System will be ready for use by Wireless Carriers by October 31, 2013. Licensee, at its own cost and expense, shall construct the System at the Property as set forth in Schedule 11 accordance with the following: a. Standard of Care. Licensee shall construct and maintain all Attachments in a safe condition in accordance with the System Specifications, applicable Laws and Licensor's general construction Formatted: Font: Not Bold, No underline 6 - 1 - 9 6/5/2012 Wireless Communications and License Agreement Page 7 of 12 and maintenance standards, as either may be amended, revised and supplemented from time to time. In the event of conflict or ambiguity among Laws, Licensor in its sole but reasonable discretion shall determine which Laws shall govern. No work shall be done by Licensee when there is reason to suspect that working conditions on a Structure may be hazardous as the result of weather or any other conditions. b. Contact. Licensee shall respond on a 24/7 basis to any problems or emergencies reported by the Structure Manager via contact to Licensee’s network operations center at (800) 788-0011 or via any other toll-free or local telephone number designated by Licensee upon written notice to Licensor. c. Relocation. Licensee shall not change the location of its Attachments without the written consent of Licensor, except in cases of emergency. In cases of emergency, Licensee shall first procure Licensor's consent orally by contacting the Structure Manager and such request and consent may be confirmed in writing by Licensee and approved in writing by Licensor once the emergency has been resolved. Within thirty (30) days following the termination or resolution of the emergency, Licensee at its sole expense shall return its Attachments to the authorized location at the Structure. d. Licensor Liability. Licensor reserves to itself, its successors and assigns, the right to maintain the Structures as necessary to fulfill its Primary Purpose. Licensor shall not be liable to Licensee for any interruption of service for the System, or for any property of Licensor used by Licensee. Licensee specifically waives any claim for indirect, special, consequential or punitive damages against Licensor in connection with this Agreement, including any claims for loss or interruption of service. e. Licensee Liability. Licensee shall exercise reasonable caution in performing the activities covered by this Agreement to avoid damage to the Structures. Licensee hereby agrees to reimburse Licensor for any direct or indirect costs incurred in making repairs to any of such property damaged by Licensee, its contractors or any other entity acting on Licensee’s behalf. Licensee shall promptly advise Licensor of all incidents and claims relating to damage to property or injury to or death of persons, arising or alleged to have arisen in any manner by Licensee’s activities upon the Property. f. Utilities. Licensor makes no representations or warranties with respect to availability of utilities to serve each Attachment. Licensor shall allow Licensee to access its electrical power, provided that Licensee pays the cost of utility service provided to the Property and attributable to Licensee’s use. Such costs shall be billed monthly by Licensor to Licensee, with reasonable supporting documentation of such utility consumption, and shall be paid be Licensee upon receipt of such invoice. Licensee agrees to pay for utilities based on (i) sub-metering equipment at the Hub Site, to be installed by Licensee at its cost; and (ii) estimated usage for each Node, based on equipment specifications and spot measurements. g. Hazardous Materials. Licensee shall not (either with or without negligence) cause or permit the escape, disposal or release of any Hazardous Materials on or from the Property in any manner prohibited by Law. Licensee shall indemnify and hold Licensor harmless from all Claims from the release of any Hazardous Materials on the Property if caused by Licensee. h. Fiber Network Operations. Licensee shall maintain and operate the Fiber Network in accordance with the Fiber Network Standards. i. Updating System. During the Term the System will support equipment technologies desired to be operated by Wireless Carriers, as it is contemplated that most technological advances will not impact the System, rather the equipment owned or operated by Wireless Carriers. The failure of Wireless Carriers to update their respective equipment on the System will not result in a breach by Licensee hereunder. 6 - 1 - 10 6/5/2012 Wireless Communications and License Agreement Page 8 of 12 j. Monitoring. Licensee’s Network Operations Center (NOC) shall provide 24 hours a day, 7 days per week monitoring of the System. Licensee shall respond to any issues discovered by the NOC or reasonable problems or emergencies reported by the Structure Manager via contact to the NOC at (800) 788-0011. The NOC will promptly open a trouble ticket upon receipt of a service impacting alarm. Licensee will use commercially reasonable efforts to respond to alarms for failed Wi-Fi Network access points within four (4) hours during business hours in order to resolve same as promptly as reasonably practicable. Notwithstanding the foregoing, Licensee shall not be responsible to resolve any issues that are caused by or are the result of (i) the failure of Licensor’s Fiber to satisfy the Fiber Standards or (ii) the failure of the Wireless Carriers’ equipment to operate as expected, k. Wi-Fi Network. The Wi-Fi network will contain Wi-Fi equipment to support technologies for managing network traffic to enhance user experience such as measuring bandwidth and detecting changes to network conditions and will maintain an uptime commitment for the core network of at least ninety-nine percent (99%), measured annually. 6. Removal of Attachments. Without limiting or terminating the Term of the Agreement, specific Licenses may be terminated without fault to either party upon the following conditions: a. Termination by Licensee. Licensee may terminate its License as to any Structure by removing its Attachments therefrom and restoring the Structure to its prior condition if, in its reasonable business judgment: (i) such removal will not materially degrade the RF coverage on the Property; or (ii) the Attachment being removed is to be relocated pursuant to a new License. At least thirty (30) days prior to removal, Licensee shall give Licensor notice of such removal substantially in the form attached hereto as Exhibit BB hereto. b. Relocation by Licensor. Licensor may require Licensee to remove any Attachment if Licensor, in support of its Primary Purpose, intends to remove, substantially alter or demolish the Structure supporting such Attachment so that it is unable to support the Attachment or the Attachment will interfere with Licensor’s use of the Structure. In order to require such removal, Licensor must (i) provide at least one hundred eighty (180) days’ written notice prior to the date of the proposed removal of any Attachment, but at least three hundred sixty-five (365) days’ written notice prior to the date of the proposed removal of the Hub Site, (ii) propose a reasonable alternative location for such Attachment (the “Alternate Location”); and (iii) must grant Licensee at least one hundred eighty (180) days following receipt of all necessary Government Permits (but at least three hundred sixty-five (365) days for relocation of the Hub Site) to complete the relocation. In the event Licensee accepts the Alternate Location, Licensor and Licensee shall execute a License before construction commences. Licensee shall be responsible for its cost of relocating the Attachment. Notwithstanding anything in this Agreement to the contrary, Licensor may order removal of any Attachment in a shorter period of time if Licensor determines that removal is in the best interest of the public health, safety or welfare. c. Conflict with Laws. Upon written notice from Licensor to Licensee that the use of any Structure is forbidden by Law, the License to Attach to such Structure shall immediately terminate and the Attachments of Licensee shall be removed by Licensee from the affected Structures, provided, however, that Licensee, with Licensor’s reasonable assistance, may contest such adverse decision in good faith, and during the pendency of such challenge may maintain such Attachment to the extent allowed by Government Authorities. Licensor will cooperate with Licensee to identify a suitable Alternative Location, in which case the Attachment shall be relocated in accordance with the process set forth in Section 6.b above. 7. Indemnification. To the extent permitted by applicable law, Licensee and Licensor shall indemnify and hold harmless each other and their respective Agents from and against all Claims, whether direct or indirect, as a result of, arising out of or in any way connected with activities under this Agreement, whenever made or incurred. Either Party shall have the right to demand that the other Party undertake to defend any and all suits and to Formatted Formatted: Font: Not Bold, No underline 6 - 1 - 11 6/5/2012 Wireless Communications and License Agreement Page 9 of 12 investigate and defend any and all Claims. Notwithstanding the foregoing, neither Party shall have an obligation to indemnify or defend against any Claim to the extent caused by the negligence or willful misconduct of the other Party or its Agents. Licensor’s indemnification obligations, to the extent permitted by applicable law, are subject to Section 13.g. 8. Insurance; Casualty. Licensee shall carry insurance at its sole cost and expense to protect the Parties from risk arising out of placement of the Attachments on the Structures. Licensee shall provide the specified insurance throughout the Term, shall file with Licensor's designated risk manager certificates of insurance evidencing such coverage. Certificates and policies shall provide that coverage may not be canceled without thirty (30) days’ prior written notice to Licensor. a. Coverage Amounts. Throughout the Term Licensee shall maintain the following insurance coverage from a carrier licensed to conduct business in the state where the Property is located: i. Worker's compensation meeting statutory requirements. ii. Commercial general liability insurance including personal injury, contractual liability, independent contractors and broad form property damage with the following minimum liability limits: (i) $1,000,000 per occurrence combined single limit; (ii) $2,000,000 general aggregate; and (iii) $3,000,000 umbrella liability, with an endorsement stating Licensor is an additional insured with respect to operations relating to this Agreement. iii. Commercial automobile liability insurance with a minimum liability limit of $1,000,000 per occurrence combined single limit. b. Subcontractor Insurance. Licensee agrees that it will require all of its contractors and subcontractors accessing the Property to provide insurance meeting the requirements of this Section 8. c. Casualty and Restoration. In the event that one or more of the Structures containing an Attachment is damaged or destroyed such that it cannot be used for an Attachment, then within five (5) days of such damage or destruction Licensor shall notify Licensee of its intent whether to repair the Structure, and if so then the proposed schedule for such repair. Licensee will have the option to (i) declare this Agreement null and void with respect to the affected Attachments, (ii) to the extent that the damage will prevent continued operation of the Hub Site or the System in Licensee’s reasonable discretion, terminate this Agreement, or (iii) wait for Licensor to repair the Structure. 9. Eminent Domain. If Licensor receives notice of a proposed taking by eminent domain (or any agreement in lieu of condemnation) of any part of the Property impacting any Attachment, Licensor will notify Licensee of the proposed taking within five (5) days of receiving such notice. Licensee will have the option to: (i) declare this Agreement null and void with respect to the affected Attachments and thereafter neither Party will have any liability or obligation hereunder for each such Attachment; or (ii) respect to a taking which will prevent continued operation of the Hub Site or the System in Licensee’s reasonable discretion, to terminate this Agreement. With either option, Licensee shall have the right to contest the taking in good faith and to directly pursue an award from the condemning authority. 10. Default. In the event of default by either Party (the “Defaulting Party”) with respect to any of the provisions or obligations of this Agreement, the other Party (the “Non-Defaulting Party”) shall give the Defaulting Party written notice of such default. After receipt of such written notice, the Defaulting Party shall have fifteen (15) days in which to cure any monetary default and thirty (30) days in which to cure any non-monetary default. The Defaulting Party shall have such extended periods as may be required beyond the thirty (30) day cure period to cure any non-monetary default if the nature of the cure is such that it reasonably requires more than thirty (30) days to cure, and Defaulting Party commences the cure within the thirty (30) day period and thereafter continuously and diligently pursues the cure to completion (the “Cure Period”). The Non-Defaulting Party may not maintain any action or effect any remedies for default against the Defaulting Party unless and until the Defaulting Party has failed to cure the same within the time periods provided in this Section. 6 - 1 - 12 6/5/2012 Wireless Communications and License Agreement Page 10 of 12 a. Consequences of Licensee’s Default. In the event that Licensee remains in default beyond the Cure Period, Licensor may, at its option, upon written notice: (i) terminate the Agreement with respect to the Attachment(s) related to the default and be relieved from all further obligations under this Agreement with respect to such Attachment; (ii) perform the obligations of Licensee specified in such notice, in which case any expenditures reasonably made by Licensor in so doing shall be deemed paid for the account of Licensee and Licensee agrees to reimburse Licensor for said expenditures upon demand; or (iii) terminate the License with respect to the Attachment giving rise to the Default, in which event Licensee shall remove the Attachment in accordance with subsection c below, and the Parties shall amend the Agreement accordingly. b. Consequences of Licensor’s Default. In the event that Licensor remains in default beyond the Cure Period, Licensee may, at its option, upon written notice: (i) terminate the Agreement with respect to the Attachment(s) related to the default, be relieved from all further obligations under this Agreement with respect to such Attachment; or (ii) sue for damages to recover any amount reasonably expended by Licensee as a result of such default excluding any claims of lost fees or profits as well as exemplary and punitive damages. c. Removal of Attachments. Upon expiration or earlier termination of this Agreement, Licensee shall, within sixty (60) days following termination or expiration of the Term, remove at its sole cost and expense, any or all of the Attachments, specifically excluding Licensee’s Fiber, or restore all or any part of the Radio Space to the same condition as originally received by Licensee (ordinary wear and tear excepted). 11. Assignment. This Agreement shall extend to and bind the successors, transferees and permitted assigns of the Parties. Any attempted assignment or transfer by Licensee in violation of this Section shall be void. a. Assignment by Licensee. Licensee shall not assign this Agreement without the prior written consent of Licensor, provided that Licensee has the right to sublicense the Hub Site space and use of the System to any Wireless Carrier. b. Assignment by Licensor. Licensor may assign or transfer its interest in this Agreement, provided that the assignee shall be bound by all provisions herein. c. Sale of Property. If Licensor sells all or part of the Property, then such sale shall be subject to this Agreement. 12. Notice. Except as otherwise specified, any notice to be given to Licensor under this Agreement shall be sent by registered mail, return receipt requested, or by overnight courier with a tracking record of delivery to respective addresses set forth below. Except as otherwise stated herein, any notice shall be effective immediately upon being deposited with the applicable delivery agent. Licensor: Licensee: Town of Vail NewPath Networks, LLC. 75 South Frontage Road 2000 Corporate Drive Vail, CO 81657 Canonsburg, PA 15317 (970) 479-2154 (724) 416-2000 Attn: Director of Information Technology Attn: Legal Department With a copy that shall not constitute notice to: Vail Town Attorney Contract Administrator 75 S. Frontage Road NewPath Networks, LLC Vail, CO 81657 1100 Dexter Avenue North Suite 250 Seattle, WA 98109 6 - 1 - 13 6/5/2012 Wireless Communications and License Agreement Page 11 of 12 13. Miscellaneous. a. Governing Law; Venue. This Agreement shall be governed by and interpreted according to the laws of the State of Colorado, without reference to its choice of law or conflict of law rules. Venue for any proceeding brought in connection with this Agreement shall be in Eagle County, Colorado. b. No waiver. Except as expressly set forth in this Agreement: (i) neither Party shall be deemed to have waived any of its rights hereunder unless such waiver is in writing; (ii) no delay or omission by any Party in exercising any right shall operate as a waiver of such right or of any other right; and (iii) a waiver on any one occasion shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion. c. Interpretation. The singular includes the plural and the plural includes the singular. Except as otherwise provided herein, references to a Section, Schedule or Exhibit mean a Section, Schedule or Exhibit contained in or attached to this Agreement, all of which are incorporated herein by reference. The caption headings in this Agreement are for convenience and reference only and do not define, modify or describe the scope or intent of any of the terms of this Agreement. This Agreement will be interpreted and enforced in accordance with its provisions and without the aid of any custom or rule of law requiring or suggesting construction against the Party drafting or causing the drafting of the provisions in question. If any one or more of the provisions of this Agreement, or the applicability of any such provision to a specific situation, shall be held invalid or unenforceable by Law, such provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provision shall not be affected thereby. If any date herein set forth for the performance of any obligations by either party or for the delivery of any instrument or notice as herein provided should be on a Saturday, Sunday or legal holiday in Pennsylvania, the compliance with such obligations or delivery shall be deemed acceptable on the next business day. These terms shall have the indicated meaning when used in this Agreement: (i) including shall mean including, without limitation, (ii) or shall mean and/or (unless indicated otherwise), and (iii) discretion means within the applicable party’s sole discretion. Further, any reference to statute, act or code shall mean the statute, act or code as amended. d. Entire Agreement. This Agreement constitutes the entire and final expression of the Parties hereto with respect to the subject matter hereof, and supersede all previous agreements and understandings of the Parties, either oral or written. This Agreement can be amended only by written agreement signed by the Parties. e. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be fully executed as an original and all of which together shall constitute one and the same instrument. f. Appropriation. Consistent with Article X, § 20 of the Colorado Constitution, any financial obligations of the Town not performed during the current fiscal year are subject to annual appropriation, and thus any obligations of the Town hereunder shall extend only to monies currently appropriated and shall not constitute a mandatory charge, requirement, debt or liability beyond the current fiscal year. g. Governmental Immunity. Licensor and its officers and employees are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations (presently one hundred fifty thousand dollars ($150,000) per person and six hundred thousand dollars ($600,000) per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to Licensor and its officers or employees. h. Rights and Remedies. The rights and remedies of Licensor and Licensee under this Agreement are in addition to any other rights and remedies provided by law. The expiration of this Formatted: Underline 6 - 1 - 14 6/5/2012 Wireless Communications and License Agreement Page 12 of 12 Agreement shall in no way limit Licensor's legal or equitable remedies, or the period in which such remedies may be asserted, for work negligently or defectively performed. i. Municipal Corporation. Licensor is a municipal corporation under the laws of the State of Colorado. Licensor and Licensee acknowledge that this Agreement is subject to public disclosure as specified by the Colorado Open Records Act, CRS § 24-72-200 et seq. j. Warranty. Licensor hereby expressly disclaims all warranties of merchantability and fitness for a particular purpose associated with the Property. Licensee accepts the Property “As Is.” unless otherwise set forth herein. k. Waiver. The receipt of any sum paid by Licensee to Licensor after a breach of this Agreement shall not be deemed a waiver of such breach unless expressly set forth in writing by Licensor. l. Survival. Terms and conditions of this Agreement which by their sense and context survive the termination, cancellation or expiration of this Agreement will so survive. IN WITNESS WHEREOF, Licensor and Licensee have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date. LICENSOR: LICENSEE: Town of Vail NewPath Networks, LLC By: __________________________________________ By: _______________________________________ Name: ________________________________________ Name: Richard A. Platt Title: _________________________________________ Title: Vice President – DAS and Small Cell Sales Date: _________________________________________ Date: ______________________________________ Formatted: Underline Formatted: Underline Formatted: Underline Formatted: Underline 6 - 1 - 15 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 1 of 1 Schedule 1 System Description The Hub Site and Node locations are generally identified on the attached preliminary network drawings. During the design and installation process, Nodes and antennae locations will be specifically identified and approved (and may be changed) by mutual agreement of Licensor and Licensee. A form for such approval (contemplated being executed for each such location), is attached hereto as Schedule 1.1, which may be changed from time to time by mutual agreement of the parties. 6 - 1 - 16 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 1 of 7 Hub Lease Area 6 - 1 - 17 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 2 of 7 Vail Transportation Center Indoor DAS Design 6 - 1 - 18 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 3 of 7 6 - 1 - 19 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 4 of 7 6 - 1 - 20 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 5 of 7 6 - 1 - 21 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 6 of 7 6 - 1 - 22 6/5/2012 Wireless Communications and License Agreement Schedule 1 System Description Page 7 of 7 6 - 1 - 23 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 1 of 14 Schedule 1.1 Hub Site/Node Location Form Hub Site or Node location description set forth below or on attached map or construction drawing. LICENSOR Town of Vail By: _________________________ Print Name: _________________________ Title: _________________________ Date: _________________________ LICENSEE NewPath Networks, LLC By: _________________________ Print Name: _________________________ Title: _________________________ Date: _________________________ 6 - 1 - 24 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 2 of 14 Outdoor DAS Node Locations 6 - 1 - 25 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 3 of 14 6 - 1 - 26 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 4 of 14 Sites and Sectors for Outdoor DAS Nodes Name Longitude Latitude Fire #3 Fiber POP -106.4225 39.628 N2 -106.399117 39.640746 NEW3_A -106.368 39.63871 NEW5_B -106.414 39.631791 nNEW6 -106.405995 39.636834 VAIL MUNI -106.380056 39.644194 VAIL165Frst-EXPOL -106.380361 39.6405 VAILCasSpa-EXPOL -106.402167 39.638194 VAILCommns-EXPOL -106.415833 39.632194 VAILDonPav-EXPOL -106.409 39.634556 VAILFireN2-GWROF -106.379 39.642222 VAILFordSo-EXPOL -106.366 39.638361 VAILFrdPrk-EXPOL -106.366444 39.639944 VAILGorBus-EXPOL -106.410278 39.633444 VAILHou142-EXPOL -106.380556 39.642694 VAILIceRnk-EXPOL -106.383806 39.644 VAILLHBus-EXPOL -106.387083 39.643694 VAILLHSqu-EXPOL -106.389944 39.642667 VAILLHVAWhse-EXPOL -106.393389 39.642806 VAILMarriN-EXPOL -106.391583 39.643278 VAILMarStr-EXPOL -106.419167 39.628222 VAILMedCtr-EXPOL -106.383167 39.643083 VAILMidRnd-EXPOL -106.376778 39.643278 VAILPedXvr-EXPOL -106.390222 39.644639 VAILPopWgn-EXPOL -106.374 39.640083 VAILTivS-EXPOL -106.370861 39.63975 VAILTransE-GWROF -106.371694 39.641917 VAILTransW-EXPOL -106.374389 39.642444 VAILVrdTen-EXROF -106.364028 39.640833 VAILWestMa-EXPOL -106.417139 39.630833 VAILWilowPk-EXPOL -106.376583 39.640778 6 - 1 - 27 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 5 of 14 Public Works Facility Monopine Design & Lease Area 6 - 1 - 28 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 6 of 14 Fiber Layout 6 - 1 - 29 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 7 of 14 6 - 1 - 30 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 8 of 14 6 - 1 - 31 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 9 of 14 6 - 1 - 32 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 10 of 14 Wi-Fi Network Hostname Node Type Part Number Serial Number Latitude Longitude Altitude MAC VAIL165Frst- EXPOL SkyExtender DualBand 710- 00012-02 F20935209 39.640545 -106.380386 2508.060303 00:0a:db:03:66:3f VailAntlers-CPE SkyConnect or Outdoor 710- 00010-03 F50161041 0 0 0 00:0a:db:02:11:b0 VAILAraPrk- EXPOL SkyExtender DualBand 710- 00012-02 F20908957 39.643986 -106.38887 2467.435303 00:0a:db:03:45:5f VAILAspLne- EXPOL SkyExtender DualBand 710- 00012-02 F20881896 39.646687 -106.326447 2517.784912 00:0a:db:01:f2:3f VAILBlkGrDr- EXPOL SkyExtender DualBand 710- 00012-02 F20933512 39.624428 -106.283089 2615.303223 00:0a:db:03:84:1f VAILBooFls- EXPOL SkyExtender DualBand 710- 00012-02 F20935196 39.647591 -106.321907 2534.149414 00:0a:db:03:68:3f VAILBooFls- GWTR SkyGateway 710- 00011-02 F20919211 39.64769 -106.321487 2534.939941 00:0a:db:03:19:15 VAILBooPrk- EXPOL SkyExtender DualBand 710- 00012-02 F20839139 39.647873 -106.324867 2523.485107 00:0a:db:01:92:1f VAILCasSpa- EXPOL SkyExtender DualBand 710- 00012-02 F20891117 39.638218 -106.402176 2451.673584 00:0a:db:01:fd:9f VAILChkChar- EXPOL SkyExtender DualBand 710- 00012-02 F20908897 39.640606 -106.375458 2480.034424 00:0a:db:03:49:7f VAILChxBus- EXPOL SkyExtender DualBand 710- 00012-02 F20908969 39.624962 -106.424568 2402.950928 00:0a:db:03:44:5f VAILColDr- EXPOL SkyExtender DualBand 710- 00012-02 F20891108 39.637222 -106.29805 2570.971436 00:0a:db:01:fc:7f VAILCommns- EXPOL SkyExtender DualBand 710- 00012-02 F20764255 39.632187 -106.415817 2434.696777 00:0a:db:01:44:7f VAILDayCar- EXPOL SkyExtender DualBand 710- 00012-02 F20891113 39.645519 -106.37854 2502.113037 00:0a:db:01:fd:1f VAILDonPav- EXPOL SkyExtender DualBand 710- 00012-02 F20839131 39.63456 -106.409004 2430.747803 00:0a:db:01:8f:ff VAILDouDia- EXPOL SkyExtender DualBand 710- 00012-02 F20909035 39.643536 -106.387924 2469.311035 00:0a:db:03:31:9f VAILDwdJct- GWTR SkyGateway 710- 00011-02 F20919170 39.616257 -106.449623 2727.088867 00:0a:db:03:19:0c VAILEasBus- EXPOL SkyExtender DualBand 710- 00012-02 F20873719 39.638905 -106.300835 2556.262451 00:0a:db:01:cb:5f VAILEastLdg- GWROF SkyGateway 710- 00011-02 F20915118 -89.999992 89.999992 0 00:0a:db:03:18:2f VAILEgeNstW- GWTR SkyGateway 710- 00011-02 F20919176 39.620514 -106.392952 3134.248535 00:0a:db:03:18:fc VAILElfPrk- EXPOL SkyExtender DualBand 710- 00012-02 F20908975 39.62785 -106.425392 2444.02832 00:0a:db:03:42:9f VAILFalBus- EXPOL SkyExtender DualBand 710- 00012-02 F20809774 39.645042 -106.307068 2547.146729 00:0a:db:01:69:bf VAILFireN1- EXPOL SkyExtender DualBand 710- 00012-02 F20859642 39.63773 -106.301155 2561.112305 00:0a:db:01:d7:7f VAILFireN2- GWROF SkyGateway 710- 00011-02 F20915135 39.642208 -106.37896 2488.088623 00:0a:db:03:18:33 VAILFordSo- EXPOL SkyExtender DualBand 710- 00012-02 F20873794 39.638367 -106.366013 2492.923096 00:0a:db:01:a0:ff 6 - 1 - 33 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 11 of 14 Hostname Node Type Part Number Serial Number Latitude Longitude Altitude MAC VAILFrdPrk- EXPOL SkyExtender DualBand 710- 00012-02 F20908988 39.639935 -106.366386 2494.196289 00:0a:db:03:41:df VAILGolf13- EXPOL SkyExtender DualBand 710- 00012-02 F20908996 39.645691 -106.332069 2514.617188 00:0a:db:03:40:5f VAILGolfCl- EXROF SkyExtender DualBand 710- 00012-02 F20873736 39.64172 -106.344772 2506.025635 00:0a:db:01:c8:5f VAILGorBus- EXPOL SkyExtender DualBand 710- 00012-02 F20908980 39.633453 -106.410255 2420.54126 00:0a:db:03:40:df VAILGorsuc- EXPOL SkyExtender DualBand 710- 00012-02 F20891126 39.640823 -106.373116 2484.612061 00:0a:db:01:fe:bf VAILGymnas- GWROF SkyGateway 710- 00011-02 F20919169 39.646431 -106.388519 2506.913086 00:0a:db:03:19:0d VAILGymnas2- GWROF SkyGateway 710- 00011-02 F20915115 39.64653 -106.388481 2512.072754 00:0a:db:03:18:1e VAILHanRan- EXPOL SkyExtender DualBand 710- 00012-02 F20916341 39.640106 -106.372879 2488.291016 00:0a:db:03:4b:df VAILHou142- EXPOL SkyExtender DualBand 710- 00012-02 F20908966 39.642715 -106.380516 2475.302246 00:0a:db:03:43:ff VAILIceRnk- EXPOL SkyExtender DualBand 710- 00012-02 F20832549 39.644001 -106.383789 2483.291748 00:0a:db:01:b3:df VAILIntBri- EXPOL SkyExtender DualBand 710- 00012-02 F20890359 39.641026 -106.375648 2477.281982 00:0a:db:01:f7:bf VAILKinBus- EXPOL SkyExtender DualBand 710- 00012-02 F20891133 39.618958 -106.428368 2382.718994 00:0a:db:01:fb:5f VAILLftHse- EXPOL SkyExtender DualBand 710- 00012-02 F20891112 39.644249 -106.388298 2474.272949 00:0a:db:01:fc:ff VAILLHBus- EXPOL SkyExtender DualBand 710- 00012-02 F20909027 39.643681 -106.387062 2475.569824 00:0a:db:03:30:9f VAILLHI70- EXPOL SkyExtender DualBand 710- 00012-02 F20908874 39.644806 -106.389137 2480.512451 00:0a:db:03:5d:df VAILLHMoes- EXPOL SkyExtender DualBand 710- 00012-02 F20891128 39.643898 -106.389816 2499.722168 00:0a:db:01:fe:ff VAILLHPkC- EXPOL SkyExtender DualBand 710- 00012-02 F20908962 39.64431 -106.38604 2482.513184 00:0a:db:03:43:7f VAILLHPkE- EXPOL SkyExtender DualBand 710- 00012-02 F20935227 39.64439 -106.385094 2486.199707 00:0a:db:03:9c:bf VAILLHPkW- EXPOL SkyExtender DualBand 710- 00012-02 F20908876 39.64439 -106.386887 2483.990234 00:0a:db:03:5e:1f VAILLHPlaz- EXPOL SkyExtender DualBand 710- 00012-02 F20908951 39.643696 -106.390572 2470.389404 00:0a:db:03:44:9f VAILLHSqu- EXPOL SkyExtender DualBand 710- 00012-02 F20908987 39.642658 -106.389923 2468.953613 00:0a:db:03:41:bf VAILLHVAWh se-EXPOL SkyExtender DualBand 710- 00012-02 F20908968 39.642818 -106.393349 2470.900879 00:0a:db:03:44:3f VAILLibr- GWROF SkyGateway 710- 00011-02 F20915117 39.643429 -106.383904 2471.096924 00:0a:db:03:18:30 VailLionsHeadA nnex-CPE SkyConnect or Outdoor 710- 00010-03 F50161057 0 0 0 00:0a:db:02:11:a0 VailLionsHeadI nn-CPE SkyConnect or Outdoor 710- 00010-03 F50161256 0 0 0 00:0a:db:02:10:a6 VAILMarriN- EXPOL SkyExtender DualBand 710- 00012-02 F20891122 39.643188 -106.391518 2483.217773 00:0a:db:01:fe:3f 6 - 1 - 34 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 12 of 14 Hostname Node Type Part Number Serial Number Latitude Longitude Altitude MAC VAILMarriW- EXPOL SkyExtender DualBand 710- 00012-02 F20909033 39.642834 -106.39241 2467.881836 00:0a:db:03:31:5f VAILMarStr- EXPOL SkyExtender DualBand 710- 00012-02 F20908972 39.628235 -106.419159 2402.526367 00:0a:db:03:42:3f VAILMeaCrk- EXPOL SkyExtender DualBand 710- 00012-02 F20908998 39.620056 -106.428001 2386.569824 00:0a:db:03:40:9f VAILMedCtr- EXPOL SkyExtender DualBand 710- 00012-02 F20930975 39.643082 -106.383202 2475.892578 00:0a:db:03:7f:ff VAILMidCrk- EXROF SkyExtender DualBand 710- 00012-02 F20924651 39.645966 -106.380539 2524.767578 00:0a:db:03:68:ff VAILMidRnd- EXPOL SkyExtender DualBand 710- 00012-02 F20891118 39.643307 -106.376778 2493.232422 00:0a:db:01:fd:bf VAILMunCtr- GWTR SkyGateway 710- 00011-02 F20915129 39.644127 -106.380066 2493.196289 00:0a:db:03:18:38 VAILPedXvr- EXPOL SkyExtender DualBand 710- 00012-02 F20891103 39.64463 -106.39019 2487.701904 00:0a:db:01:fb:df VAILPopWgn- EXPOL SkyExtender DualBand 710- 00012-02 F20909009 39.640079 -106.374008 2482.077637 00:0a:db:03:33:5f VAILPtatoPDr- EXPOL SkyExtender DualBand 710- 00012-02 F20832525 39.648537 -106.392036 2574.099365 00:0a:db:01:af:9f VAILPubWkE- GWROF SkyGateway 710- 00011-02 F20915108 39.642845 -106.354698 2508.735352 00:0a:db:03:18:26 VAILRacClu- EXPOL SkyExtender DualBand 710- 00012-02 F20858947 39.630207 -106.28669 2598.754883 00:0a:db:01:98:5f VAILRedSanRd -EXPOL SkyExtender DualBand 710- 00012-02 F20908983 39.647388 -106.396172 2501.432129 00:0a:db:03:41:3f VAILSanBus- EXPOL SkyExtender DualBand 710- 00012-02 F20890318 39.64563 -106.390503 2494.872803 yyyy VAILSanDrBus- EXPOL SkyExtender DualBand 710- 00012-02 F20935331 39.644733 -106.397934 2491.250488 00:0a:db:03:8b:1f VAILSimRBus- EXPOL SkyExtender DualBand 710- 00012-02 F20873779 39.643036 -106.399292 2478.290039 00:0a:db:01:cd:7f VAILSkiClu- EXPOL SkyExtender DualBand 710- 00012-02 F20909003 39.638454 -106.367355 2492.670654 00:0a:db:03:35:1f VAILSonAlp- EXPOL SkyExtender DualBand 710- 00012-02 F20891119 39.642021 -106.377144 2482.66626 00:0a:db:01:fd:df VAILStream- EXPOL SkyExtender DualBand 710- 00012-02 F20908953 39.633232 -106.291451 2579.788086 00:0a:db:03:44:df VAILSunBus- EXPOL SkyExtender DualBand 710- 00012-02 F20890321 39.641247 -106.349411 2502.162598 00:0a:db:01:f5:5f VAILTimBus- EXPOL SkyExtender DualBand 710- 00012-02 F20876235 39.632984 -106.293503 2577.217773 00:0a:db:01:bd:5f VAILTimRid- EXPOL SkyExtender DualBand 710- 00012-02 F20908981 39.63924 -106.403969 2458.951172 00:0a:db:03:40:ff VAILTivLod- EXPOL SkyExtender DualBand 710- 00012-02 F20891129 39.64035 -106.370811 2488.428711 00:0a:db:01:ff:1f VAILTivS- EXPOL SkyExtender DualBand 710- 00012-02 F20935277 39.63974 -106.370834 2490.051758 00:0a:db:03:9e:df VAILTransCtr- GWROF SkyGateway 710- 00011-02 F20807531 39.642246 -106.373215 2497.926025 00:0a:db:03:01:1a VAILTransE- GWROF SkyGateway 710- 00011-02 F20807533 39.64193 -106.371674 2496.168457 00:0a:db:03:01:18 6 - 1 - 35 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 13 of 14 Hostname Node Type Part Number Serial Number Latitude Longitude Altitude MAC VAILTransW- EXPOL SkyExtender DualBand 710- 00012-02 F20858959 39.642445 -106.374367 2493.456787 00:0a:db:01:98:df VAILVaiRun- EXPOL SkyExtender DualBand 710- 00012-02 F20908869 39.642883 -106.396988 2472.231201 00:0a:db:03:5d:3f VAILVillCtr- EXROF SkyExtender DualBand 710- 00012-02 F20858956 39.64185 -106.375458 2487.357422 00:0a:db:01:97:bf VAILVRC- GWROF SkyGateway 710- 00011-02 F20919216 39.630875 -106.290375 2592.561035 00:0a:db:03:19:10 VAILVRCBrL- EXPOL SkyExtender DualBand 710- 00012-02 F20908965 39.631248 -106.28846 2590.740479 00:0a:db:03:43:df VAILVRCMid- EXPOL SkyExtender DualBand 710- 00012-02 F20891121 39.632084 -106.290794 2590.630615 00:0a:db:01:fe:1f VAILVRCWest- EXPOL SkyExtender DualBand 710- 00012-02 F20891104 39.631954 -106.291779 2592.123779 00:0a:db:01:fb:ff VAILVrdTen- EXROF SkyExtender DualBand 710- 00012-02 F20908994 39.640831 -106.364014 2506.95166 00:0a:db:03:40:1f VAILWesBus- EXPOL SkyExtender DualBand 710- 00012-02 F20908964 39.630486 -106.41964 2419.594482 00:0a:db:03:43:bf VAILWestMa- EXPOL SkyExtender DualBand 710- 00012-02 F20873807 39.630833 -106.417114 2419.083496 00:0a:db:01:a2:9f 6 - 1 - 36 6/5/2012 Wireless Communications and License Agreement Schedule 1.1 Hub Site/Node Location Form Page 14 of 14 6 - 1 - 37 6/5/2012 Wireless Communications and License Agreement Schedule 2 Property Page 1 of 1 Schedule 2 Property For all purposes of this Agreement, the following terms shall be defined as follows: Property: Land and property owned or controlled by the Town of Vail, Vail, CO Primary Purpose: Governmental Purposes 6 - 1 - 38 6/5/2012 Wireless Communications and License Agreement Schedule 3 Existing Agreements Page 1 of 1 Schedule 3 Existing Agreements NONE 6 - 1 - 39 6/5/2012 Wireless Communications and License Agreement Schedule 3 Existing Agreements Page 1 of 1 Schedule 4 Licensee’s Fiber Made Available to Licensor [TO BE COMPLETED AND MUTUALLY ACCEPTABLE AS FIBER LOCATIONS ARE IDENTIFIED AND AGREED TO] 6 - 1 - 40 6/5/2012 Wireless Communications and License Agreement Exhibit A Application and Additional License Page 1 of 1 Exhibit A Application and Additional License [To Licensor at Notice Address] RE: Wireless Communications and License Agreement (Agreement) dated _____ by and between the Town of Vail, Colorado (Licensor) and NewPath Networks, LLC. (Licensee) This letter shall confirm the agreement of Licensor and Licensee that the following Attachments are included in the Agreement: Crown Node # Node location Equipment included in Attachment and additional Fiber Network used Attachment Date The Additional Licenses for the above referenced Attachments are hereby granted as of the attachment date set forth above. LICENSOR: LICENSEE: Town of Vail NewPath Networks, LLC By: __________________________________________ By: _______________________________________ Name: ________________________________________ Name: _____________________________________ Title: _________________________________________ Title: ______________________________________ Date: _________________________________________ Date: ______________________________________ 6 - 1 - 41 6/5/2012 Wireless Communications and License Agreement Exhibit B Notification of Removal by Licensee Page 1 of 1 Exhibit B Notification of Removal by Licensee [To Licensor at Notice Address] RE: Wireless Communications and License Agreement (Agreement) dated _____ by and between Town of Vail (Licensor) and NewPath Networks, LLC (Licensee) This letter shall confirm the agreement of Licensor and Licensee that the following Attachments were removed: Crown Node # Node location Removal Date The Licenses for the above referenced Attachments are hereby terminated as of the removal date set forth above. LICENSOR: LICENSEE: Town of Vail NewPath Networks, LLC By: __________________________________________ By: _______________________________________ Name: ________________________________________ Name: _____________________________________ Title: _________________________________________ Title: ______________________________________ Date: _________________________________________ Date: ______________________________________ 6 - 1 - 42 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 1 of 8 Exhibit C System Specifications I. GENERAL A. PURPOSE. The purposes of these site standards are to govern the use of the Structures for the benefit of Licensee and Licensor to provide guidance on the quality of equipment installation required by the Agreement. B. TERMS. The Terms with initial capital letters herein shall have the meanings ascribed to them in the Agreement. C. STATE AND NATIONAL STANDARDS. All installations at the time of installation of each Structure, and thereafter at the time of each modification to each Structure, must conform to the latest version of all state and national regulations and the following state and national codes or any supplements, amendments or provisions that supersede them, including without limitation: 1. American National Standards Institute, Telecommunications Industry Association, Electronic Industries Association Standards. 2. Federal Communications Commission (“FCC”) Rules and Regulations, including 47 C.F.R. §§ 17.1--.58; 47 C.F.R. § 1.1307 et seq; and FCC OET Bulletin 65. 3. Building Officials and Code Administrators International, Inc. (“BOCA”) Codes, including the most current version of the following: x BOCA National Building Code x BOCA National Fire Prevention Code x BOCA International Mechanical Code 4. National Fire Protection Association Codes, including the following: x Code 70 (National Electrical Code) x Code 90A (Installation of Air Conditioning and Ventilating Systems) x Code 90B (Installation of Warm Air Heating and Air Conditioning Systems) x Code 101 (Life Safety) x Code 110 (Emergency and Standby Power Systems) x Code 780 (Lightning Protection) 5. Currently adopted State and Local Building and Fire Safety Codes, and to the extent any Local codes conflict with any codes in this Exhibit C, the Local codes shall control. 6. Occupational Safety and Health Administration, Department of Labor Rules and Regulations regarding Safety and Health Standards, including 29 C.F.R. § 1910.268 (Special Industries - Telecommunications). D. GENERAL/APPROVAL 1. Prior to installations of any of Attachments, Licensor will furnish to Licensee all documents and approvals required pursuant to the Agreement. Licensee shall furnish to Licensor a complete list of all materials required for the installation, photo simulations, architectural and engineering plans, structural calculations, shop drawings, and 6 - 1 - 43 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 2 of 8 equipment specifications. No work shall proceed until Licensor has approved the planned installation. 2. The Attachments may not be operated until the installation is approved by Licensor in writing. 3. The following will not be permitted at the Hub Site or any Licensed Structure without the prior written consent of Licensor: a. Any equipment without FCC type acceptance or other FCC equipment authorization under Part 2 of the FCC’s Rules and Regulations, or equipment that does not conform to FCC rules and regulations. b. Add-on power amplifiers. c. Open rack mounted receivers and transmitters. d. Equipment with crystal oscillator modules that have not been temperature compensated. e. Non-continuous duty rated transmitters used in continuous duty applications. f. Transmitter outputs without a harmonic filter and antenna matching circuitry. 4. Unless otherwise stated within the Agreement, no work shall be performed at the Hub Site or any Licensed Structure (including, but not limited to, the modification of transmission lines) except routine or emergency maintenance, without the prior written consent of Licensor. At Licensor’s option, scheduling of such work will be coordinated with Licensor to allow Licensor to have a representative present during the performance of the work. All installation, repair and maintenance work conducted by Licensee will be in accordance with good engineering practices and the terms and conditions of this specification. 5. No animals (except service animals as recognized by law) or persons under the age of majority as determined under the laws of the state where the Hub Site is located are permitted at the Hub Site at any time. 6. Except as permitted in the Agreement or as otherwise agreed by Licensor in writing, Licensee will not make alterations or physical additions in or to a Structure without Licensor’s prior written permission. E. INSPECTION. In accordance with the terms of this Agreement, Licensor reserves the right to inspect the Attachments and the Hub Site in order to ensure compliance with these site standards. Any such inspection will be solely for the information and use of Licensor and does not constitute any approval of or acquiescence to the conditions at the Structure that might be revealed during the course of the inspection. F. EQUIPMENT. Movement of construction vehicles, equipment buildings, generators and similarly large equipment in or around the Property will be restricted to times and locations designated by Licensor. Licensor will determine the method of routing to ensure the safety of all concerned parties and minimize damage to the Property and Structures. At least twenty-four (24) hours advance notice is required prior to the movement of equipment. 1. Licensor will determine the manner in which the Attachments will be placed. 2. Licensor will have the authority to determine the maximum equipment weight allowed in any area of a Licensed Structure. G. RADIO FREQUENCY INTERFERENCE PROTECTIVE DEVICES. If, due to a Licensee’s proposed modification, there exists any change to the Radio Frequency (“RF”) environment, Licensor may, at its sole discretion and Licensee’s cost, require additional protective devices. In 6 - 1 - 44 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 3 of 8 order to properly evaluate any proposed modification, Licensor shall have the right to request the following information from the Licensee: x Theoretical transmitter mixes - Combiner/multicoupler configurations x Historical problems x Calculated and measured level of IM products (these issues should be resolved before launch) x Spectrum analyzer measurements x Voltage Standing Wave Radio (“VSWR”) measurements x Existing cavity selectivity H. LIGHTNING SURGE ARRESTOR. Antenna lines entering any Radio Space must have a suitable lightning surge arrestor installed within two (2) feet of the cable entry port. The surge arrestor must be bonded to the site grounding system. II. CABLE A. All transmission lines will be installed and maintained to avoid kinking and/or cracking. B. Transmission interconnecting cables and jumpers will be constructed of solid copper outer conductor Superflex™ or hardline. C. Cables will not be installed, after the initial installation, without written permission by Licensor. D. Each cable will be tagged with weatherproof labels showing the owner’s name at both ends of the cable run, or such cable shall be color coded with vinyl tape, with Licensor’s approval of color code. E. Each cable fastener that is exposed to the weather will be stainless steel. F. All interconnecting cables/jumpers will have shielded outer conductor. G. Interior cables will run in troughs or cable trays and on cable or wave guide bridges at intervals of no less than three (3) feet. H. Outside cables will be attached with stainless steel hangers and non-corrosive hardware. I. All unused lines will be tagged, using color codes, at both ends showing termination points with the appropriate impedance termination at each end. J. All AC line cords must be 3-conductor type with attached grounding plugs. All AC line cords installed in permanently affixed racks shall utilize locking-type plugs. K. All transmission lines will be grounded at both end of the Attachments and at the Licensee’s Radio Space entry point, with the appropriate grounding kits. Grounding will be in accordance the specifications outlined within these System Specifications. L. All cables running to and from the exterior of the cabinet will be one hundred percent (100%) ground shielded. Preferred cables are: Heliax®, Superflex™ or braided grounds with foil wrap. M. All other interior cables must be ¼, ½ Superflex™ or value flex as manufactured by Andrew Corporation or approved equal. III. CONNECTORS A. Connectors will be Teflona® filled, UHF or N type, SMA, or DIN type including chassis/bulkhead connectors. 6 - 1 - 45 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 4 of 8 B. Connectors will be properly fabricated (soldered, if applicable), if field installed. C. Connectors will be taped and Scotchkoted™ or equivalent at least 4 onto the jacket, if exposed to the weather. D. Male pins must be of proper length, in accordance with manufacturer’s specifications. E. Female contacts will not be spread. F. Connectors must be pliers tight. Hand tight is not acceptable. G. Connectors will be silver-plated or brass. H. Connectors must be electrically and mechanically equivalent to the Original Equipment Manufacturers (“OEM”) connectors. IV. RECEIVERS A. All RF shielding must be in place. B. Receivers must meet manufacturer’s specifications, particularly with regard to bandwidth, discriminator, swing and symmetry and spurious responses. C. Crystal filters, pre-selectors, and cavities must be installed in RX legs, where appropriate. V. TRANSMITTERS A. Transmitters must meet manufacturer’s original specification. B. All RF shielding must remain in place. C. Transmitters must be tagged with owner’s name, contact name, contact phone number, equipment model number, serial number and operating frequency(ies) and a copy of Licensee’s current FCC license for such transmitter. D. All low level, pre-driver and driver stages in the exciters must be shielded. E. All power amplifiers must be shielded. F. Output power will not exceed that specified on the applicable FCC license. VI. COMBINERS/MULTICOUPLERS A. Combiners/multicouplers will meet the manufacturer’s specifications. B. Combiners/multicouplers must be tuned using the manufacturer’s approved procedures. C. Combiners/multicoupler must provide a minimum of 60 dB transmitter to transmitter isolation. VII. CABINETS A. All cabinets must be bonded together and to the equipment building ground system. B. All cabinet doors must be secured. C. All non-original holes larger than 1 must be covered with copper screen or solid metal plates. D. Current licenses for all operating frequencies must be mounted on the cabinet exterior for display at all times. 6 - 1 - 46 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 5 of 8 E. All cabinets must be labeled, identifying owner and contents. VIII. MAINTENANCE/TUNING PROCEDURES A. If the Radio Space is within a common equipment shelter, access will be by authorized personnel only. B. Only qualified employees or agents of Licensee will perform maintenance and tuning. Prior written consent is not required for this work. C. Equipment operating parameters must meet manufacturer’s specifications. D. All cover, shield and rack fasteners must be in place and securely fastened following these procedures. IX. INTERFERENCE DIAGNOSTIC PROCEDURES A. In accordance with the Agreement, Licensee must cooperate immediately with Licensor when called upon to investigate a source of interference, whether or not it can be conclusively proven that any portion of the System is involved. B. Lengths: 1. Cable runs will not be longer than necessary to provide a proper connection and normal maintenance and operation. 2. No coiled lengths will be permitted on the ice bridge or on the ground. C. Entry: 1. Entry of cable to the interior of the Licensee’s Radio Space will be via ports provided in the Licensee’s Radio Space’s wall. 2. Cable entrance port will be provided with a boot to seal. The boot shall be a Microflect or equivalent commercial product made specifically for the type of cable or waveguide and the size of the port. 3. Seals will be installed in accordance with the manufacturer’s instructions and will be sealed against moisture. X. EQUIPMENT LOCATED WITHIN A COMMON EQUIPMENT SHELTER A. Equipment Installation Requirements in a common equipment shelter: 1. Licensor must approve mounting of Attachments to interior or exterior building walls prior to installation. 2. All racks and equipment will be plumb and true with walls and floor. 3. Installation of Attachments will be consistent with the electrical and operation requirements of such Attachments. 4. The Attachments will be installed in a neat and workmanlike manner to provide a professional, finished installation. 5. All of Licensee’s equipment shall be labeled. B. Transmission Lines Routing: 6 - 1 - 47 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 6 of 8 1. All cables will be placed and secured in cable trays or troughs within the Licensee’s Radio Space to the equipment racks and termination points. C. Lengths: 1. Cable lengths will not be longer than necessary to provide proper connection. 2. No coiled lengths will be permitted in the tray or elsewhere in the Licensee’s Radio Space or elsewhere in the common equipment shelter. D. Licensor has provided transient surge protection on the primary AC feed to the Radio Space. However, Licensor does not provide any warranty against electrical surge. Therefore, Licensor recommends that Licensee install, at Licensee’s expense, individual transient surge protection on each circuit used by Licensee. E. Licensee will operate equipment with all shields attached, cabinet doors closed and side panels attached. F. Neither Licensee nor its representatives will interfere with any other attachments or systems at the Structure. Licensee will not trip any electric service breakers for any reason without Licensor’s prior written approval. G. Licensee will not adjust, attempt to adjust or otherwise tamper with the temperature control thermostats within a Licensed Structure. Licensor will adjust thermostats as required to maintain the standard building temperature. XI. GROUNDING A. Licensee must adhere to the grounding specifications listed herein, based upon the Attachments at the Structure. B. All exterior grounding connections to the main ground loop will use exothermic welding (Cadweld®). C. Cables will be grounded, at a minimum, prior to the point of entry to the Hub Site. D. Cable grounding leads will connect to a separate point for each run to the common ground point. E. Grounding straps will be kept to a minimum length and as near as possible to the vertical down lead. Straps will be consistent with the restraints of protective dress and access. F. Each rack will be a properly sized, insulated ground lead from the rack safety and signal grounds to a grounding point on the ground plate. G. The insulated ground lead must follow the cable tray routing and must be located in the tray. H. Each rack will be separately grounded. XII. ELECTRICAL A. Polarized electrical outlets must be installed for all transmitters when possible. B. Surge protection will be provided for all base stations. XIII. ELECTRICAL DISTRIBUTION A. Within the Hub Site, all electrical wiring from the distribution breaker panel will be via rigid metal conduit, routed along the underside of the cable tray to a point directly above the equipment rack. 6 - 1 - 48 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 7 of 8 XIV. TEMPORARY LOADS A. Test equipment, soldering irons or other equipment serving a test or repair function will be used if the total load connected to any single or duplex receptacle does not exceed fifteen (15) amps. B. Test equipment to be used in place for more than seven (7) days will require approval by Licensor prior to placement. XV. DOORS. Doors accessing buildings or shelters that house the Attachments will not be left unlocked or propped open except as required for moving equipment. XVI. LICENSED STRUCTURE APPEARANCE A. Licensee will be required to remove all trash, dirt, debris and other materials that it brings onto or creates at a Structure. B. No food or drink will be permitted at the Hub Site or within a Structure except as allowed by Licensor. C. No smoking is permitted at a Structure or the Hub Site. D. Doorways, vestibules and other areas in and around a Structure will not be obstructed or used by Licensee for any purpose other than the intended purpose. E. Damage to a Licensed Structure, the Hub Site, or any portion of the Property, caused by Licensee, its Wireless Carrier customer, or either of their respective agents or contractors, will be the responsibility of Licensee. F. Licensee’s installation must be maintained in a neat and orderly manner. G. Signs, advertisements, graphics or notices (except for warning signs placed by Licensor, or that Licensee may be required to post in compliance with laws, ordinances, regulations or rules adopted or promulgated by any appropriate Government Entity) are not permitted in or around a Structure or the Hub Site. H. Licensee shall not move or modify signs placed on or around Structures by Licensor. I. All signs placed on or around any of the Licensed Structures shall comply with the Town of Vail sign code, as applicable. XVII. STORAGE. Except as expressly permitted by Licensor, no equipment, parts or materials will be stored at a Structure by Licensee. Licensee may store such material within the Hub Site as reasonably necessary for the operation and maintenance of the System. XVIII. DAMAGE. Licensee will report to Licensor any damage to a Structure, structure, component or equipment that is observed by Licensee, whether or not caused by Licensee. XIX. REPORTING ON SITE A. Emergency twenty-four (24) hour contact number(s) must be displayed on the outside of Licensee’s equipment cabinets or in Licensee’s Radio Space. B. Routine service calls will be scheduled between the hours of 8:00 a.m. and 5:00 p.m. weekdays. C. Personnel must utilize appropriate access devices (such as cards or combinations where applicable) to prevent activation of the alarm system when entering shared Licensed Structure space. When exiting the Licensed Structure, the security system must be re-armed. 6 - 1 - 49 6/5/2012 Wireless Communications and License Agreement Exhibit C System Specifications Page 8 of 8 D. Licensee will comply with these System Specifications requirements for the security of the Structure. 6 - 1 - 50 6/5/2012 Wireless Communications and License Agreement Exhibit D Fiber Network Standards Page 1 of 1 Exhibit D Fiber Network Standards A. Initial Minimum Standards at Installation. All fiber connectivity will be a continuous path utilizing fusion splices from the Hub location(s) to the remote antenna locations. Below are the industry standard specifications for the Network Fiber at installation: Below are the industry standard specifications for the Network fiber at installation: From Glass Loss: <0.35 dB/km @ 1310 nm wavelength <0.20 dB/km @ 1550 nm wavelength From Insertion Loss (Connectors): <0.1 dB per LC connector From Splice Loss: <0.05 dB for single-mode fiber Optical Time Domain Reflectometer (“OTDR”) test should be performed and the results provided to Crown as the basis for the minimum standards (Baseline Standard) for the Fiber Network during the Term. B. Maintenance and Response to Outages. The Parties expect that the Fiber Network will operate at the standards set forth above and in the event of a Fiber Network failure, Licensee will use commercially reasonable efforts to repair the Fiber Network within two (2) hours of such failure. Licensor will use commercially reasonable efforts to assist licensee as requested thereby. 6 - 1 - 51 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Appointment of new members to the Commission on Special Events (CSE), Vail Local Housing Authority (VLHA) and Vail Local Licensing Authority (VLLA) boards. PRESENTER(S): Pam Brandmeyer ACTION REQUESTED OF COUNCIL: Staff requests the Town Council appoint one member to the CSE, one member to the VLHA and two members to the VLLA at the evening meeting. BACKGROUND: See memorandum and letters of interest attached to work session agenda item. 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Ever Vail - The Community Development Department requests that the major subdivision and Ordinance Nos. 7, 8 and 9, Series of 2011 be continued to the July 17, 2012, public hearing. Major Subdivision: A request for a review of a preliminary plan for a major subdivision, pursuant to Chapter 13-3, Major Subdivision, Vail Town Code, to allow for the creation of two lots for the redevelopment of the properties known as Ever Vail (West Lionshead), located at 862, 923, 934, 953, 1000 and 1031 South Frontage Road West, and the South Frontage Road West right-of- way/unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080062) Rezoning (Ordinance No. 7, Series of 2011): A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision located generally at 862, 923, 934, 953, 1000, and 1031 South Frontage Road, and the South Frontage Road right-of-way/unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080061) Special Development District Amendment (Ordinance No. 8, Series of 2011): A request for a recommendation to the Vail Town Council for a major amendment to Special Development District No. 4, Cascade Village, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the removal of Development Area D (Glen Lyon Office Building) from Special Development District No. 4, Cascade Village, and for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to include the subject property in the Lionshead Mixed Use 2 District, located at 1000 South Frontage Road West/Lot 54, Glen Lyon Subdivison, and setting forth details in regard thereto. (PEC090036) Title 12, Zoning Regulations, Vail Town Code, Amendment ( Ordinance No. 9, Series of 2011): A request for a final recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 12- 10-19, Core Areas Identified, Vail Town Code, to amend the core area parking maps to include "Ever Vail" (West Lionshead) within the "Commercial Core" designation, and setting forth details in regard thereto. (PEC080065) PRESENTER(S): Warren Campbell ACTION REQUESTED OF COUNCIL: The Community Development Department requests that the major subdivision and Ordinance Nos. 7, 8, and 9, Series of 2011 be continued to the July 17, 2012 public hearing. 6/5/2012 BACKGROUND: Major Subdivision: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, on the preliminary plan for the major subdivision to establish Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5-0-2 (Viele and Cartin recused). Rezoning: On January 10, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a zone district boundary amendment to establish Lionshead Mixed Use 2 District zoning on Parcels 1 and 2 of the Ever Vail Subdivision, by a vote of 5-0-2 (Viele and Cartin recused). Special Development District Amendment: On January 24, 2011, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a major amendment to Special Development District (SDD) No. 4, Cascade Village, to remove the Glen Lyon Office Building from the SDD in order for it to be incorporated into the Ever Vail Subdivision, by a vote of 4-0-2 (Viele and Cartin recused). Title 12, Zoning Regulations, Vail Town Code, Amendment: On January 11, 2010, the Planning and Environmental Commission forwarded a recommendation of approval, with conditions, for a prescribed regulations amendment to Section 12-10-19, Core Areas Identified, Vail Town Code, by a vote of 4-0-2 (Viele and Cartin recused). STAFF RECOMMENDATION: The Community Development Department requests that the major subdivision and Ordinance Nos. 7, 8, and 9, Series of 2011 be continued to the July 17, 2012 public hearing. 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: First Reading of Ordinance No. 7, Series of 2012, an ordinance repealing and reenacting the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the conversion of one existing fractional fee club unit to one dwelling unit, located at 16 Vail Road (The Sebastian) / a portion of lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. PRESENTER(S): Rachel Dimond, Dominic Mauriello ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 7, Series of 2012, upon first reading. BACKGROUND: On May 12, 2012, the Planning and Environmental Commission (PEC) recommended approval, with conditions, to the Vail Town Council for a major amendment to Special Development District No. 6. The PEC also approved, with conditions, the amendment to an existing conditional use permit for the reduction in fractional fee units. Should Ordinance No. 7, Series of 2012 be approved, The Sebastian will be permitted to increase the number of dwelling units from one to two and decrease the number of fractional fee units from 50 to 49. STAFF RECOMMENDATION: The Planning and Environmental Commission recommends the Vail Town Council approves, with conditions, Ordinance No. 7, Series of 2012, upon first reading. The PEC recommends the following condition be placed on the approval: 1. “The applicant shall amend all applicable condominium maps to reflect the change in use and cause said maps to be recorded in the office of the Eagle County Clerk and Recorder within 90 days of approval of the major amendment to the special development district application.” ATTACHMENTS: Ordinance No. 7, Series of 2012 Staff memorandum Ordinance No. 7, Series of 2012 Attachment A PEC memo Ordinance No. 7, Series of 2012 Attachment B Ordinance 6/5/2012 TO: Vail Town Council FROM: Community Development Department DATE: June 5, 2012 SUBJECT: First reading of Ordinance No. 7, Series of 2012, an ordinance repealing and reenacting the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the conversion of one existing fractional fee club unit to one dwelling unit, located at 16 Vail Road (The Sebastian) / a portion of lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC120015). Applicant: Ferruco Vail Ventures LLC, represented by Mauriello Planning Group Planner: Rachel Dimond I. SUMMARY The applicant, Ferruco Vail Ventures LLC, represented by Mauriello Planning Group, is requesting a first reading of Ordinance No. 7, Series of 2012, an ordinance repealing and reenacting the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the conversion of one existing fractional fee club unit to one dwelling unit, located at 16 Vail Road (The Sebastian) / a portion of lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. The Vail Town Council shall approve, approve with conditions, or deny Ordinance No. 7, Series of 2012, upon first reading. II. DEVELOPMENT STATISTICS Should Ordinance No. 7, Series of 2012 be approve, the development statistics in Phase IV (The Sebastian) will change as follows: The number of units permitted in Phase IV shall not exceed the following: Dwelling Units – 1 2 Accommodation Units - 100 Fractional Fee Club Units – 50 49 Type III Employee Housing Units -18 (38 employee beds totaling 9,618 square feet of floor area) 9 - 1 - 1 6/5/2012 Town of Vail Page 2 III. PLANNING AND ENVIRONMENTAL COMMISSION RECOMMENDATION On May 14, 2012, the Planning and Environmental Commission recommended the Vail Town Council approve, with conditions, Ordinance No. 7, Series of 2012, upon first reading, with a vote of 7-0-0, with the following condition: 1. “The applicant shall amend all applicable condominium maps to reflect the change in use and cause said maps to be recorded in the office of the Eagle County Clerk and Recorder within 90 days of approval of the major amendment to the special development district application.” This recommendation was based upon the review of the criteria outlined in the May 14, 2012 memorandum to the Planning and Environmental Commission, and the evidence and testimony presented. IV. ACTION REQUESTED OF THE TOWN COUNCIL Should the Vail Town Council choose to approve Ordinance No. 7, Series of 2012, upon first reading, the Community Development Department recommends the Council passes the following motion: “The Vail Town Council approves Ordinance No. 7, Series Of 2012, an ordinance repealing and reenacting the approved development plan for Phase IV of Special Development District No. 6, Vail Village Inn, pursuant to Article 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the conversion of one existing fractional fee club unit to one dwelling unit, located at 16 Vail Road (The Sebastian) / a portion of lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto.” Should the Vail Town Council choose to approve Ordinance No. 7, Series of 2012, the Community Development Department recommends the Council applies the following condition: 1. “The applicant shall amend all applicable condominium maps to reflect the change in use and cause said maps to be recorded in the office of the Eagle County Clerk and Recorder within 90 days of approval of the major amendment to the special development district application.” Should the Vail Town Council choose to approve Ordinance No. 7, Series of 2012, the Community Development Department recommends the Council makes the following findings: “Based upon the review of the criteria outlined in the May 14, 2012 memorandum to the Planning and Environmental Commission, and the evidence and testimony presented, the Vail Town Council finds: 1. That the amendments are consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town. 9 - 1 - 2 6/5/2012 Town of Vail Page 3 2. That the amendments are compatible with and suitable to adjacent uses and appropriate for the surrounding areas. 3. That the amendments promote the health, safety, morals, and general welfare of the town and promote the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” V. ATTACHMENTS A. Ordinance No. 7, Series of 2012 B. PEC memorandum dated May 14, 2012 9 - 1 - 3 6/5/2012 To: Planning and Environmental Commission From: Community Development Department Date: May 14, 2012 Subject: A request for the review of an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, and a recommendation to the Vail Town Council on a major amendment to Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the conversion of a fractional fee club unit to a dwelling unit, located at 16 Vail Road (Sebastian Hotel)/Part of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC120015 & PEC120022) Applicant: Ferruco Vail Ventures LLC, represented by Mauriello Planning Group Planner: Rachel Dimond I. SUMMARY The applicant, Ferruco Vail Ventures LLC, represented by Mauriello Planning Group, is requesting the following in relation to The Sebastian: x a review of an amendment to an existing conditional use permit for a fractional fee club to reduce the number of fractional fee units from 50 to 49; and x a recommendation to the Vail Town Council of a major amendment to Special Development District No. 6, Vail Village Inn to increase the number of dwelling units from one to two. Based upon Staff’s review of the criteria outlined in Sections VII and VIII of this memorandum and the evidence and testimony presented, and subject to the findings noted in Section IX of this memorandum, Staff recommends: x The PEC approves, with conditions, the amendment to an existing conditional use permit x The PEC forwards a recommendation of approval, with conditions, to the Vail Town Council for a major amendment to Special Development District No. 6. A vicinity map (Attachment A) and the applicant’s request (Attachment B) have been attached for reference. 9 - 2 - 1 6/5/2012 Town of Vail Page 2 II. DESCRIPTION OF THE REQUEST The applicant is proposing to convert the existing fractional fee unit 401 to a dwelling unit, which will increase the number of dwelling units from one to two, and decrease the number fractional fee units from 50 to 49 in The Sebastian, which is Phase IV of Special Development District No. 6, Vail Village Inn. Unit 401 is 986 square feet. The intent of the pending purchaser of this unit is to put the unit in the Sebastian rental pool, maintaining the unit as a warm bed. The Sebastian was formerly the Vail Plaza Hotel, and is referred to as the Vail Plaza Hotel in historical information. III. BACKGROUND The Sebastian is located within the Public Accommodation District in which lodges (“buildings designed for occupancy primarily as the temporary lodging place of individuals or families either in accommodation units or dwelling units…) are allowed as permitted uses and fractional fee club units (an individual dwelling unit in a fractional fee club described as such in the project documentation…”) are allowed as conditional uses. While a dwelling unit is “any room or group of rooms in a two-family or multiple- family building with kitchen facilities designed for or used by one family as an independent housekeeping unit”; a fractional fee club unit must be part of a fraction fee club defined by the Vail Town Code as “a fractional fee project in which each dwelling unit, pursuant to recorded project documentation as approved by the town of Vail, has no fewer than six (6) and no more than twelve (12) owners per unit and whose use is established by a reservation system and is managed on site with a front desk operating twenty four (24) hours a day, seven (7) days a week providing reservation and registration capabilities…” It is clear in the adopting legislation (Ordinance No. 22, Series of 1996) allowing fractional fee club units within the Public Accommodation District, that these units are not intended for full-time occupancy as a dwelling unit when the Town Council found “that a fractional fee club is a form of public accommodation” and “that the quality of fractional fee club unit are an appropriate means of increasing occupancy rates, maintaining and enhancing short-term rental availability and diversifying the resort lodging market within the Town of Vail”. On February 28, 2000, the Planning and Environmental Commission approved a conditional use permit for a fractional fee club at the Vail Plaza Hotel (now called The Sebastian) consisting of 50 fractional fee club units. According to Staff’s memorandum to the Planning and Environmental Commission concerning the fractional fee club: “According to the applicant, the ownership of the club units will be divided into a maximum of 1/12th intervals for the 24 winter weeks during the ski season, with the remaining 28 shoulder season and summer weeks would be owned by the hotel. This ownership program allows for the most attractive weeks of the year to be sold as club units with the proceeds helping to finance the redevelopment 9 - 2 - 2 6/5/2012 Town of Vail Page 3 project. The remaining interest in the clubs is then used by the hotel to support the conference facilities during the summer months.” On August 13, 2001, the Planning and Environmental Commission again approved a conditional use permit for a fractional fee club at the Vail Plaza Hotel consisting of 50 fractional fee club units, which had been amended to include lock-off units. According to the Staff Memorandum the Planning and Environmental Commission concerning the fractional fee club: “To further improve the occupancy potential of the fractional fee club, the 50 club units have been designed to include up to two lock-off spaces per unit. This design creates a total of 108 keys and 216 pillows for the fractional fee club component of the hotel.” Additionally, the Staff Memorandum the Planning and Environmental Commission stated the fractional fee units at the Vail Plaza Hotel: “The applicant is proposing that the club units be sold on an interval basis. The club units would be sold for 24 weeks during the winter months with the remaining 28 weeks owned by the hotel for use as short-term accommodation units.” In both 2000 and 2001, pursuant to Section 12-16-7, Vail Town Code, the Planning and Environmental Commission considered “the ability of the proposed project to create and maintain a high level of occupancy” and that “each of the fractional club units shall be made available for short term rental in a managed program when not in use by the club members”. Based upon the statements, representations, and proposals of the applicant; the Commission determined that a conditional use permit was warranted for fractional fee club at the Vail Plaza Hotel. On September 4, 2001, the Vail Town Council adopted Ordinance No. 21, Series of 2001, which amended Special Development District No. 6 to allow for the construction of the Vail Plaza Hotel with one dwelling unit, 99 accommodation units, 18 employee housing units, and 50 fractional fee club units consistent with the August 13, 2001, conditional use permit. The Planning and Environmental Commission held public hearings to discuss a request to convert 2 fractional fee units to dwelling units and one dwelling unit to a fractional fee unit on April 27, and May 11, 2009. On May 11, 2009, the Planning and Environmental Commission voted 7-0-0 to forward a recommendation of approval, with conditions, to the Town Council for the proposed special development district amendment. At its May 19, 2009, hearing the Town Council approved the first reading of Ordinance No. 13, Series of 2009, with the modifications that reference to the conversion of the penthouse dwelling unit to a fractional fee club unit be stricken, and that the sale of the penthouse unit be a trigger for the expiration of this ordinance in addition to the 9 - 2 - 3 6/5/2012 Town of Vail Page 4 Commission’s recommended triggers of the specific date May 11, 2012, or the issuance of an occupancy certificate for the penthouse unit. On June 2, 2009, the Vail Town Council denied Ordinance No. 13, Series of 2009, upon second reading. The summary minutes are as follows: “Connie Dorsey asked that the applicant not be forced to move until there is a TCO on another unit in the building. During a pause for public comment, Robert Vogel said there was a pattern of deceit being exhibited by the applicant and there was no compelling reason to grant the applicant’s request. Fractional owner’s legal representative Lindsey Richards spoke against allowing the applicant to continue to live there. The applicant, Waldir Prado, said he had been occupying a vacant unit and no one had been negatively financially impacted. Councilmember Rogers stated, “I don’t feel like I was given a straight story on it…I don’t have a good feeling we are going to know what is happening here…I don’t feel like passing this ordinance on second reading is going to help the Town of Vail…I do have an interest in hot beds.” Rogers then moved to deny the ordinance with Councilmember Newbury seconding. Councilmember Foley said employee housing in the hotel should be satisfactory for any employee of the hotel. Councilmember Hitt said he felt like he had been misled. He also agreed that employee housing should be adequate for the applicant. Newbury said one of the town’s overriding policies is to maintain hot beds. Councilmember Cleveland said the solution that was presented was not in the public interest. “It is inconsistent with the SDD approval plan.” Councilmember Daly said there is a lot more revenue the town is giving up than was previously anticipated. The motion passed unanimously, 7-0.” IV. APPLICABLE PLANNING DOCUMENTS A. Title 12, Zoning Regulations, Vail Town Code CHAPTER 12-1, TITLE, PURPOSE AND APPLICABILITY (in part) Section 12-1-2: Purpose: A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 9 - 2 - 4 6/5/2012 Town of Vail Page 5 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off-street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with Municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the Town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. CHAPTER 12-2, Definitions (in part) DWELLING UNIT: Any room or group of rooms in a two-family or multiple-family building with kitchen facilities designed for or used by one family as an independent housekeeping unit. FRACTIONAL FEE CLUB UNIT: An individual dwelling unit in a fractional fee club described as such in the project documentation and not an accommodation unit within the fractional fee club. No offer of a fractional fee club unit shall be made except pursuant to an application for registration and certification as a subdivision developer of a timeshare program or an exemption from registration approved by the state of Colorado real estate commission pursuant to Colorado Revised Statutes 12-61-401 et seq., and the rules and regulations promulgated pursuant thereto. Within ten (10) days after receipt of a written request, the developer of a fractional fee club unit shall provide to the staff of the department of community development a copy of the application or request for exemption filed with the state of Colorado real estate commission and/or evidence of approval of the application or request for exemption. ARTICLE 12-9A, SPECIAL DEVELOPMENT DISTRICT (in part) 12-9A-1: Purpose and Applicability: A. Purpose: The purpose of the special development district is to encourage flexibility and creativity in the development of land in order to promote its most appropriate use; to improve the design character and quality of the new development with the town; to facilitate the adequate and economical provision of streets and utilities; to preserve the natural and scenic features of open space 9 - 2 - 5 6/5/2012 Town of Vail Page 6 areas; and to further the overall goals of the community as stated in the Vail comprehensive plan. An approved development plan for a special development district, in conjunction with the property's underlying zone district, shall establish the requirements for guiding development and uses of property included in the special development district. B. Applicability: Special development districts do not apply to and are not available in the following zone districts: hillside residential, single-family residential, two-family residential and two-family primary/secondary residential. 12-9A-10: AMENDMENT PROCEDURES: B. Major Amendments: 1. Requests for major amendments to an approved special development district shall be reviewed in accordance with the procedures described in section 12-9A- 4 of this article. 2. Owners of all property requesting the amendment, or their agents or authorized representatives, shall sign the application. Notification of the proposed amendment shall be made to owners of all property adjacent to the property requesting the proposed amendment, owners of all property adjacent to the special development district, and owners of all property within the special development district that may be affected by the proposed amendment (as determined by the department of community development). Notification procedures shall be as outlined in subsection 12-3-6C of this title. CHAPTER 12-16: CONDITIONAL USES PERMITS (in part) Section 12-16-1: Purpose; Limitations: In order to provide the flexibility necessary to achieve the objectives of this title, specified uses are permitted in certain districts subject to the granting of a conditional use permit. Because of their unusual or special characteristics, conditional uses require review so that they may be located properly with respect to the purposes of this title and with respect to their effects on surrounding properties. The review process prescribed in this chapter is intended to assure compatibility and harmonious development between conditional uses and surrounding properties in the Town at large. Uses listed as conditional uses in the various districts may be permitted subject to such conditions and limitations as the Town may prescribe to insure that the location and operation of the conditional uses will be in accordance with the development objectives of the Town and will not be detrimental to other uses or properties. Where conditions cannot be devised, to achieve these objectives, applications for conditional use permits shall be denied. 9 - 2 - 6 6/5/2012 Town of Vail Page 7 V. SURROUNDING LAND USES Land Uses Zoning North: I-70 right-of-way Not Zoned South: Mixed Use Public Accommodation East: Mixed Use SDD #39 (Solaris) West: Multiple Family Public Accommodation and SDD #21 (Gateway) VI. ZONING ANALYSIS Development Standard Approved/ Existing Proposed Change Density -Dwelling Units -Fractional Fee Units -Accommodation Units 1 DU 50 FFU 100 AU 2 DU 49 FFU 100 AU +1 DU -1 FFU No change AU Gross Residential Floor Area (GRFA) -AU & FFU (>70%) -DU (<30%) TOTAL 98,774 sq ft (95%) 5,150 sq ft (5%) 103,924 sq ft 97,788 sq ft (94%) 6,136 sq ft (6%) 103,924 sq ft -986 sq ft +986 sq ft No change Parking 211.69 spaces required (round to 212 spaces) 218 spaces existing 212.39 spaces required (round to 213 spaces) 218 spaces existing +0.7 space required (round to 1 space additional) No change existing VII. CONDITIONAL USE PERMIT REVIEW CRITERIA Before acting on a conditional use permit application, the Planning and Environmental Commission shall consider the following factors with respect to the proposed use: 1. Relationship and impact of the use on the development objectives of the Town. The Vail Comprehensive Plan and Zoning Regulations encourage the creation of “hot beds” (accommodation units) and “warm beds” (fractional fee club units) within the commercial cores and the Public Accommodation District which is the underlying zoning for the Sebastian. These “warm bed” units have historically had higher occupancy rates than dwelling units; and therefore, bring more guests to Vail. Greater numbers of guests have a positive impact on creating vibrancy and economic viability of the commercial cores than dwelling units. The warm beds are also highly beneficial to the existing retail and restaurant uses in the other phases of the Vail Village Inn Special Development District. Staff has found that in other similar buildings, such as Manor Vail and The Arrabelle, units of this size with hotel amenities, such as a front desk, are typically put into rental pools when not in use by owners, thus acting as a warm bed, if not a hot bed. As a result, Staff believes that exchanging a fractional fee club unit for one dwelling unit is consistent with the Town’s development objectives and the intent and purpose of the overall Vail Village Inn development. 9 - 2 - 7 6/5/2012 Town of Vail Page 8 2. The effect of the use on light and air, distribution of population, transportation facilities, utilities, schools, parks and recreation facilities, and other public facilities needs. There are no changes proposed to the exterior of the existing building; therefore, Staff does not believe this proposal will have a significant negative affect on this criterion in comparison to existing conditions. 3. Effect upon traffic with particular reference to congestion, automotive and pedestrian safety and convenience, traffic flow and control, access, maneuverability, and removal of snow from the street and parking areas. Staff finds there is no effect upon traffic with particular reference to congestion, automotive and pedestrian safety and convenience, traffic flow and control, access, maneuverability, and removal of snow because there are no changes to the exterior of the building. The dwelling unit will not likely generate more traffic. Further, The Sebastian has six excess parking spaces, one of which will be required for the dwelling unit. 4. Effect upon the character of the area in which the proposed use is to be located, including the scale and bulk of the proposed use in relation to surrounding uses. There are no changes proposed to the scale or bulk and mass of the existing building; therefore, Staff does not believe this proposal will have a significant negative affect on this criterion in comparison to existing conditions. VII. SPECIAL DEVELOPMENT DISTRICT AMENDMENT REVIEW CRITERIA Before acting on a major amendment to a special development district amendment application, the Planning and Environmental Commission and Town Council shall consider the following factors with respect to the proposal: 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. Staff finds this proposal will not effect 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 because there are no changes proposed to the exterior of the existing building. 2. Relationship: Uses, activity and density which provide a compatible, efficient and workable relationship with surrounding uses and activity. 9 - 2 - 8 6/5/2012 Town of Vail Page 9 Staff finds the change in use will provide a compatible, efficient and workable relationship with surrounding uses and activities. Specifically, one additional dwelling unit, while not technically a warm bed, will be compatible with the mixed use nature of the surrounding neighborhood. Further, the dwelling unit will be put into a rental pool by the owner, and will operate as a warm bed. Should the ownership change, Staff has found that in other buildings with hotel amenities, units of this size are typically put in rental pools when not in use by owners, thereby acting as a warm bed regardless of the type of unit. 3. Parking and Loading: Compliance with parking and loading requirements as outlined in chapter 10 of this title. Staff finds the proposal is in compliance with the parking and loading requirements as outlined in Chapter 10 Title 12, Zoning Regulations. The Sebastian has six surplus parking spaces, and will use one space for the increased parking requirement, resulting in a surplus of five spaces. 4. Comprehensive Plan: Conformity with applicable elements of the Vail comprehensive plan, town policies and urban design plans. Staff believes exchanging one fractional fee club unit for one dwelling unit is consistent with the Town’s development objectives. The Vail Comprehensive Plan and Zoning Regulations encourage the creation of “hot beds” (accommodation units) and “warm beds” (fractional fee club units) within the commercial cores and the Public Accommodation District which is the underlying zoning for the Vail Plaza Hotel. These “warm bed” units have historically had higher occupancy rates than dwelling units; and therefore, bring more guests to Vail. Greater numbers of guests have a positive impact on creating vibrancy and economic viability of the commercial cores than dwelling units. Staff has found in other buildings with similar amenities, units of this size are typically included in rental pools when not in use by owners, thereby acting as a warm bed regardless of being a fractional unit or dwelling unit. Further, under existing zoning, an additional dwelling unit is permitted and does contribute to a mix of uses within the special development district. 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. Staff does not believe this proposal will have a significant negative affect on this criterion in comparison to existing conditions, as there are no natural and/or geologic hazards affecting this property. 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. 9 - 2 - 9 6/5/2012 Town of Vail Page 10 Staff does not believe this proposal will have a significant negative affect on this criterion in comparison to existing conditions, as there are no changes proposed to the site planning, location, or open space for the existing building. 7. Traffic: A circulation system designed for both vehicles and pedestrians addressing on and off site traffic circulation. Staff finds the proposal does not affect the circulation system for both vehicles and pedestrians, as The Sebastian has valet parking with surplus parking to accommodate the increase in parking requirements. 8. Landscaping: Functional and aesthetic landscaping and open space in order to optimize and preserve natural features, recreation, views and function. Staff does not believe this proposal will have a significant negative affect on this criterion in comparison to existing conditions, as there are no changes proposed to the existing landscaping. 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. Staff finds the proposal will maintain a workable, functional and efficient relationship throughout the development of the SDD, as the conversion of the unit will not require a building permit. 10. Public Benefit: The proposed deviations provide benefits to the town must outweigh the adverse effects of such deviations. Staff finds the proposed deviation will provide a benefit in real estate transfer tax, but will also have the adverse effect of losing a warm bed. In practice, however, the placement of the dwelling unit in the rental pool will likely reverse the adverse effects as Staff has found units of this type in hotel-style buildings are typically put in rental pools when not in use by owners. IX. STAFF RECOMMENDATION CONDITIONAL USE PERMIT APPLICATION The Community Development Department recommends the Planning and Environmental Commission approves, with conditions, this request for a review of an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for the conversion of a fractional fee club unit to a dwelling unit, located at 16 Vail Road (Sebastian Hotel)/Part of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. Staff’s 9 - 2 - 10 6/5/2012 Town of Vail Page 11 recommendation is based upon the review of the criteria described in Section VIII of this memorandum and the evidence and testimony presented. Should the Planning and Environmental Commission choose to approve this conditional use permit request, the Community Development Department recommends the Commission pass the following motion: “The Planning and Environmental Commission approves this request for an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for the conversion of a fractional fee club unit to a dwelling unit, located at 16 Vail Road (Sebastian Hotel)/Part of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto.” Should the Planning and Environmental Commission choose to approve this conditional use permit request, the Community Development Department recommends the Commission makes the following findings: “Based upon the review of the criteria outlined in Section VIII of this Staff memorandum to the Planning and Environmental Commission dated May 14, 2012, and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. “The proposed conditional use permit amendment is in accordance with the purposes of the Zoning Regulations and the Public Accommodation and Special Development Districts as referenced in Section V of this Staff memorandum to the Planning and Environmental Commission dated May 14, 2012. 2. The proposed conditional use permit amendment and the conditions under which it will be operated or maintained are not detrimental to the public health, safety, or welfare or materially injurious to properties or improvements in the vicinity. 3. The proposed conditional use permit amendment complies with each of the applicable provisions of Chapter 12-16, Conditional Use Permit, Vail Town Code, as referenced by Section V of this Staff memorandum to the Planning and Environmental Commission dated May 14, 2012.” Should the Planning and Environmental Commission choose to approve this conditional use permit request, the Community Development Department recommends the Commission applies the following condition: 1. “This conditional use permit approval is contingent upon the applicant obtaining Town of Vail approval of the associated major amendment to a special development district application.” SPECIAL DEVELOPMENT DISTRICT AMENDMENT APPLICATION 9 - 2 - 11 6/5/2012 Town of Vail Page 12 The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval, with conditions, to the Town Council for a major amendment to Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, to allow for the conversion of a fractional fee club unit to a dwelling unit, located at 16 Vail Road (Sebastian Hotel)/Part of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. Staff’s recommendation is based upon the review of the criteria described in Section IX of this memorandum and the evidence and testimony presented. Should the Planning and Environmental Commission choose to forward a recommendation of approval for this request, the Community Development Department recommends the Commission pass the following motion: “The Planning and Environmental Commission forwards a recommendation of approval to the Town Council for a major amendment to Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, to allow for the conversion of a fractional fee club unit to a dwelling unit, located at 16 Vail Road (Sebastian Hotel)/Part of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto.” Should the Planning and Environmental Commission choose to forward a recommendation of approval for this request, the Community Development Department recommends the Commission makes the following findings: “Based upon the review of the criteria outlined in Section IX this Staff memorandum to the Planning and Environmental Commission dated May 14, 2012, and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the special development district amendment complies with the standards listed Article 12-9A, Special Development District, or that a practical solution consistent with the public interest has been achieved. 2. That the special development district amendment is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and 3. That the special development district amendment is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and 9 - 2 - 12 6/5/2012 Town of Vail Page 13 4. That the special development district amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” Should the Planning and Environmental Commission choose to forward a recommendation of approval for this request, the Community Development Department recommends the Commission applies the following conditions: 1. “The applicant shall amend all applicable condominium maps to reflect the change in use within 90 days of approval of the major amendment to the special development district application.” X. ATTACHMENTS A. Vicinity Map B. Applicant’s Request 9 - 2 - 13 6/5/2012 VA I L R D E MEADOW DR S FRON T A G E R D E W M E A D O W D R I 70 ON-R A M P ( E A S T B O U N D ) Sebastian Hotel 05010025 Feet Vail Village Filing 1, Block 5D,Vail Village Filing 1, Block 5D, Part of Lots M, N & OPart of Lots M, N & O (16 Vail Road - Sebastian Hotel)(16 Vail Road - Sebastian Hotel) This map was created by the Town of Vail GIS Team. Use of this map should be for general purposes only. The Town of Vail does not warrant the accuracy of the information contained herein. (where shown, parcel line work is approximate) Last Modified: April 23, 2012 9 - 2 - 14 6/5/2012 THE SEBASTIAN VAIL VILLAGE INN, PHASE IV MAJOR AMENDMENT TO SDD #6, & AMENDMENT TO A CONDITIONAL USE PERMIT To allow for the conversion of Unit 401 from a Fractional Unit to a Dwelling Unit Submitted to the Town of Vail: April 13, 2012 9 - 2 - 15 6/5/2012 9 - 2 - 16 6/5/2012 9 - 2 - 17 6/5/2012 III.Zoning Analysis Because there are no exterior modifications, the proposed amendment does not affect most development standards. Below is an analysis of the proposal with regard to density, GRFA, and parking. All other standards remain as approved. Standard Existing Proposed Density Fractional Fee Units Accommodation Units Dwelling Units 50 100 1 (13.3 du/acre) 49 100 2 (13.6 du/acre) GRFA In AU and FFU (Required>70%) In DU (Required<30%) 103,924 sq. ft. 98,774 sq. ft. (95%) 5,150 sq. ft. (5%) No Change 97,788 sq. ft. (94%) 6,136 sq. ft. (6%) Parking Required Provided 211.69 spaces (rounds to 212) 218 spaces 212.38 spaces (rounds to 213) 218 spaces IV.Criteria for Review for the Major Amendment to a Special Development District Section 12-9A-8: DESIGN CRITERIA AND NECESSARY FINDINGS, Vail Town Code, provides the criteria for review of a Major Amendment to a Special Development District. These criteria have been provided below, along with an analysis of how this proposal complies with these criteria: 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. Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. No exterior changes are proposed with this request. 2.Relationship: Uses, activity and density which provide a compatible, efficient and workable relationship with surrounding uses and activity. Applicant Response: The Sebastian is a mixed-use type of development, including commercial, lodging, recreational, and residential uses. The conversion of Unit 401 from a fractional unit to a dwelling unit remains consistent with the intended purpose of the underlying zoning of Public Accommodation and the intent of Vail Land Use Plan. Adjacent properties include a similar mix of uses. The density and uses proposed for The Sebastian do not conflict with the compatibility, efficiency, or workability of the surrounding uses and activities on adjacent properties. 3 9 - 2 - 18 6/5/2012 9 - 2 - 19 6/5/2012 9 - 2 - 20 6/5/2012 Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. V.Criteria for Review for an Amendment to a Conditional Use Permit Fractional Fee Clubs are a conditional use in the Public Accommodation Zone District. Section 12-16-6: CRITERIA; FINDINGS, Vail Town Code, provides the criteria for review of a Conditional Use Permit. These criteria have been provided below, along with an analysis of how this proposal complies with these criteria: 1.Relationship and impact of the use on development objectives of the town. Applicant Response: This criterion has been addressed in Section IV of this submittal. As indicated, the proposal remains compliant with the Zoning Regulations and all applicable goals and objectives of the Vail Village Master Plan. In addition, this proposal complies with the purpose statement of the Public Accommodation zone district, which states: 12-7A-1: PURPOSE: The public accommodation district is intended to provide sites for lodges and residential accommodations for visitors, together with such public and semipublic facilities and limited professional offices, medical facilities, private recreation, commercial/retail and related visitor oriented uses as may appropriately be located within the same zone district and compatible with adjacent land uses. The public accommodation district is intended to ensure adequate light, air, open space, and other amenities commensurate with lodge uses, and to maintain the desirable resort qualities of the zone district by establishing appropriate site development standards. Additional nonresidential uses are permitted as conditional uses which enhance the nature of Vail as a vacation community, and where permitted uses are intended to function compatibly with the high density lodging character of the zone district. 2.Effect of the use on light and air, distribution of population, transportation facilities, utilities, schools, parks and recreation facilities, and other public facilities and public facilities needs. Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. 3.Effect upon traffic, with particular reference to congestion, automotive and pedestrian safety and convenience, traffic flow and control, access, maneuverability, and removal of snow from the streets and parking areas. Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. 4.Effect upon the character of the area in which the proposed use is to be located, including the scale and bulk of the proposed use in relation to surrounding uses. 6 9 - 2 - 21 6/5/2012 Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. No exterior changes are proposed. In addition to the above criteria, Section 12-16-7: USE SPECIFIC CRITERIA AND STANDARDS, provides addition criteria for a fractional fee club proposal. While these criteria are specifically for the establishment of a new fractional fee club and do not necessarily apply to the elimination of an individual unit from the fractional fee club, the applicant has provided a response for this amendment: a.If the proposal for a fractional fee club is a redevelopment of an existing facility, the fractional fee club shall maintain an equivalency of accommodation units as are presently existing. Equivalency shall be maintained either by an equal number of units or by square footage. If the proposal is a new development, it shall provide at least as much accommodation unit gross residential floor area (GRFA) as fractional fee club unit gross residential floor area (GRFA). Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. No accommodation units will be affected with this request. b.Lock off units and lock off unit square footage shall not be included in the calculation when determining the equivalency of existing accommodation units or equivalency of existing square footage. Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. No lock off is affected. c.The ability of the proposed project to create and maintain a high level of occupancy. Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. This criterion applies to the establishment of a new fractional fee club and is not applicable to this amendment. The intent of the purchaser is the unit will be managed and rented by the Sebastian, maintaining the property as a live bed. d.Employee housing units may be required as part of any new or redevelopment fractional fee club project requesting density over that allowed by zoning. The number of employee housing units required will be consistent with employee impacts that are expected as a result of the project. Applicant Response: The proposed conversion of Unit 401 from a fractional unit to a dwelling unit has no effect on the above criterion. The employee housing requirement for a fractional unit and a dwelling unit are the same. As a result, there are no impacts to employee housing as a result of this request. e.The applicant shall submit to the town a list of all owners of existing units within the project or building; and written statements from one hundred percent (100%) of the owners of existing 7 9 - 2 - 22 6/5/2012 units indicating their approval, without condition, of the proposed fractional fee club. No written approval shall be valid if it was signed by the owner more than sixty (60) days prior to the date of filing the application for a conditional use. Applicant Response: This criterion applies only to the establishment of a new fractional fee club. It is not necessary when eliminating a unit from an existing club. f.Each of the fractional fee club units shall be made available for short term rental in a managed program when not in use by the club members. The project shall include or be proximate to transportation, retail shops, eating and drinking establishments, and recreation facilities. Applicant Response: Because the Sebastian has an established rental program, managed by Timbers Resorts, the potential owner (currently under contract) has the ability to include the unit into the rental program. Unit 401 is a small one-bedroom unit, with 986 sq. ft. of GRFA. Research indicates that smaller units are more likely to be included in a rental program. 8 9 - 2 - 23 6/5/2012 VI.Adjacent Addresses JOHN D GOODMAN PO BOX 1886 0105 EDWARDS VILLAGE BLVD, STE D-201, EDWARDS, CO 81632 9 VAIL RD, ASSOC 9 VAIL RD. VAIL , CO 81657 JOSEF STAUFER 100 E MEADOW DR #31, VAIL, CO 81657 ARTHUR ANDREW ABPLANALP JR. POST OFFICE BOX 2800, VAIL, CO 81658-2800 SLIFER MANAGEMENT CO. C/O MS. SALLY HANLON, 385 GORE CREEK DRIVE - R-2, VAIL, CO 81657 MCNEILL PROPERTY MANAGEMENT 2077 N. FRONTAGE RD. #300, VAIL, CO 81657 KEVIN DEIGHAN 12 VAIL ROAD, SUITE 600 VAIL, CO 81657 VAIL HOTEL 09 LLC GENERAL COUNSEL 745 SEVENTH AVE NEW YORK, NY 10019 MAURIELLO PLANNING GROUP PO BOX 4777 EAGLE, CO 81631 CDOT 4201 E. ARKANSAS AVENUE DENVER, CO 80222 SOLARIS PROPERTY OWNER LLC 141 E MEADOW DR 211 VAIL, CO 81657 THE RESIDENCES AT SOLARIS CONDOMINIUM ASSOCIATION CHRIS LACROIX C/O GARFIELD & HECHT, P.C. 601 E. HYMAN AVENUE ASPEN, CO 81611 FIRSTBANK OF VAIL FIRSTBANK HOLDING CO PO BOX 150097 LAKEWOOD, CO 80215-0097 SONNENALP PROPERTIES INC 20 VAIL RD VAIL, CO 81657 VILLAGE INN PLAZA-PHASE V CONDOMINIUM ASSOCIATION CROSSROADS REALTY LTD PO BOX 1292 VAIL, CO 81658 TALISMAN CONDOMINIUM ASSOCIATION PTARMIGAN MANAGEMENT 62 E MEADOW DR VAIL, CO 81657 ONE WILLOW BRIDGE ROAD CONDOMINIUM ASSOCIATION, INC. CORPORATION SERVICE COMPANY 1560 BROADWAY STE 2090, DENVER, CO 80202, ONE WILLOW BRIDGE ROAD CONDOMINIUM ASSOCIATION 4148 NORTH ARCADIA DRIVE, PHOENIZ, AZ 85018-4302 VAIL GATEWAY PLAZA CONDOMINIUM ASSOCIATION, INC. VAIL TAX & ACCOUNTING P.O. BOX 5940 AVON, CO 81620 TOWN OF VAIL FINANCE DEPT 75 S FRONTAGE RD VAIL, CO 81657 9 9 - 2 - 24 6/5/2012 Ordinance No. 7, Series of 2012 first reading 1 ORDINANCE NO. 7 Series of 2012 AN ORDINANCE REPEALING AND REENACTING THE APPROVED DEVELOPMENT PLAN FOR PHASE IV OF SPECIAL DEVELOPMENT DISTRICT NO. 6, VAIL VILLAGE INN, PURSUANT TO ARTICLE 12-9A-10, AMENDMENT PROCEDURES, VAIL TOWN CODE, TO ALLOW FOR THE CONVERSION OF ONE EXISTING FRACTIONAL FEE CLUB UNIT TO ONE DWELLING UNIT, LOCATED AT 16 VAIL ROAD (THE SEBASTIAN) / A PORTION OF LOTS M, N, AND O, BLOCK 5D, VAIL VILLAGE FILING 1, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, Ordinance No. 16, Series of 2004, established the approved development plan for Phase IV (The Sebastian) of Special Development District No. 6, Vail Village Inn; and WHEREAS, amendments to a Special Development District are permitted pursuant to the parameters set forth for such in Section 12-9A-10, Vail Town Code; and WHEREAS, the Planning and Environmental Commission of the Town of Vail held a public hearing on May 14, 2012 to consider the proposed amendment in accordance with the provisions of the Vail Town Code and forwarded a recommendation of approval, with conditions, to the Vail Town Council by a vote of 7-0-0; and WHEREAS, the Vail Town Council finds that the proposed amendment to Special Development District No. 6, complies with the review criteria outlined in Section 12-9A-8, Vail Town Code, and that the applicant has demonstrated that any adverse effects of the requested deviations from the development standards of the underlying zoning are outweighed by the public benefits provided; and WHERAS, the Town Council finds that the special development district amendment does comply with the standards listed Article 12-9A, Special Development District, or that a practical solution consistent with the public interest has been achieved; and WHEREAS, the Vail Town Council finds that the special development district amendment is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and WHEREAS, the Vail Town Council finds that the special development district amendment is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and WHEREAS, the Vail Town Council finds that the special development district amendment does promote the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality; and WHEREAS, the Vail Town Council finds that temporary approval of this amendment will have no negative effect on parking since the existing penthouse dwelling unit can not yet be occupied; and 9 - 3 - 1 6/5/2012 Ordinance No. 7, Series of 2012 first reading 2 WHEREAS, the approval of this special development district amendment, and the development standards in regard thereto, shall not establish precedence or entitlements elsewhere within the Town of Vail. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. PURPOSE The purpose of this ordinance is to amend Phase IV of Special Development District No. 6 to increase the number of dwelling units from one to two and decrease the number of fractional fee club units from 50 to 49 for the purpose of converting a fractional fee club unit to a dwelling unit. Section 2. Section 2, Development Standards, of Ordinance No. 16, Series of 2004, is hereby amended as follows (all additions are illustrated with bold italics, deletions are illustrated with strikethrough, and text not affected has been omitted): Density-- Units per Acre - Dwelling Units, Accommodation Units, & Fractional Fee Club Units The number of units permitted in Phase IV shall not exceed the following: Dwelling Units – 1 2 Accommodation Units - 100 Fractional Fee Club Units – 50 49 Type III Employee Housing Units -18 (38 employee beds totaling 9,618 square feet of floor area) Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Vail Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The Vail Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. The Council’s finding, determination and declaration is based upon the review of the criteria prescribed by the Town Code of Vail and the evidence and testimony presented in consideration of this ordinance. Section 5. The amendment of any provision of the Town Code of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. 9 - 3 - 2 6/5/2012 Ordinance No. 7, Series of 2012 first reading 3 INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 5th day of June, 2012 and a public hearing for second reading of this Ordinance set for the 19th day of June, 2012, at 6:00 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. _______________________ Andrew P. Daly, Mayor ATTEST: _________________________ Lorelei Donaldson, Town Clerk 9 - 3 - 3 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: First Reading of Ordinance No. 8, Series of 2012, an ordinance amending the Official Zoning Map to rezone the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District, located at 1778 Sunburst Drive/Vail Golf Course Clubhouse Parcel, and setting forth details in regard thereto. PRESENTER(S): Bill Gibson, Community Development Department ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 8, Series of 2012, on first reading. BACKGROUND: The Vail Golf Course clubhouse and parking lot are located on separate parcels. The Vail Golf Course clubhouse is located in the Outdoor Recreation District and the parking lot is located in the General Use District. The purpose of this ordinance is to consolidate the Vail Golf Course clubhouse and parking lot sites into the same zone district. The proposed ordinance is also intended to facilitate renovations to the Vail Golf Course in response to the November 8, 2011 election. In November 2011, the Vail electorate approved ballot question #1 which re-allocated conference center funds, in part, for the “Expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.”The subject Vail Golf Course (including the clubhouse) was annexed into the Town of Vail in 1972 and subsequently zoned to the Agriculture District. In 1973, the golf course (including the clubhouse) was rezoned from the Agriculture District to the newly created Agriculture and Open Space District. In 1995, the Vail Golf Course (including the clubhouse) was rezoned from the Agriculture and Open Space District to the newly created Outdoor Recreation District. The Vail Golf Course parking lot site was also annexed into the Town of Vail in 1972 and in 1973 was zoned as part of Special Development District No. 1, Sunburst Development. In 1977, the Vail Golf Course parking lot was rezoned from SDD No. 1 to the Public Use District (which was renamed the General Use District in 1994).On May 14, 2012, the Planning and Environmental Commission approved, with conditions, a final plat establishing the Vail Golf Course Clubhouse Parcel. This final plat established the golf course clubhouse as a separate development site from the remainder of the unplatted golf course parcel. At that same hearing, the Planning and Environmental Commission forwarded a recommendation of approval for the proposed rezoning of the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District by a vote of 4-3-0 (Cartin, Pratt and Rediker opposed). STAFF RECOMMENDATION: The Planning and Environmental Commission recommends the Vail Town Council approves Ordinance No. 8, Series of 2012, on first reading. ATTACHMENTS: Town Council Memo Attachment A Ordinance No. 8, Series of 2012 Attachment B May 14, 2012 PEC Memo Attachment C May 14, 2012, PEC Draft Result 6/5/2012 TO: Vail Town Council FROM: Community Development Department DATE: June 5, 2012 SUBJECT: Ordinance No. 8, Series of 2012, an ordinance amending the Official Zoning Map to rezone the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District, located at 1778 Sunburst Drive/Vail Golf Course Clubhouse Parcel, and setting forth details in regard thereto. (PEC120019) Applicant: Town of Vail Planner: Bill Gibson I. SUMMARY The first reading of Ordinance No. 8, Series of 2012, an ordinance amending the Official Zoning Map to rezone Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District. On May 14, 2012, the Town of Vail Planning and Environmental Commission forwarded a recommendation of the approval for the proposed Official Zoning Map amendment. II. DESCRIPTION OF REQUEST The Vail Golf Course clubhouse and parking lot are located on separate parcels. The Vail Golf Course clubhouse is located in the Outdoor Recreation District and the parking lot is located in the General Use District. The purpose of this ordinance is to consolidate the Vail Golf Course clubhouse and parking lot sites into the same zone district. The proposed ordinance is also intended to facilitate renovations to the Vail Golf Course in response to the November 8, 2011 election. In November 2011, the Vail electorate approved ballot question #1 which re-allocated conference center funds, in part, for the “Expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.” The subject Vail Golf Course (including the clubhouse) was annexed into the Town of Vail in 1972 and subsequently zoned to the Agriculture District. In 1973, the golf course (including the clubhouse) was rezoned from the Agriculture District to the newly created Agriculture and Open Space District. In 1995, the Vail Golf Course (including the clubhouse) was rezoned from the Agriculture and Open Space District to the newly 10 - 1 - 1 6/5/2012 Town of Vail Page 2 created Outdoor Recreation District. It is not clear from the Town’s archives why the golf course parking lot was not also rezoned the Agriculture and Open Space District. The Vail Golf Course parking lot site was also annexed into the Town of Vail in 1972 and in 1973 was zoned as part of Special Development District No. 1, Sunburst Development. In 1977, the Vail Golf Course parking lot was rezoned from SDD No. 1 to the Public Use District (which was renamed the General Use District in 1994). On May 14, 2012, the Planning and Environmental Commission approved, with conditions, a final plat establishing the Vail Golf Course Clubhouse Parcel. This final plat established the golf course clubhouse as a separate development site from the remainder of the unplatted golf course parcel. At that same hearing, the Planning and Environmental Commission forwarded a recommendation of approval for the proposed rezoning of the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District by a vote of 4-3-0 (Cartin, Pratt and Rediker opposed). Ordinance No. 8, Series 2012 (Attachment A), the May 14, 2012, Memorandum to the Planning and Environmental Commission (Attachment B), and the May 14, 2012, Draft Planning and Environmental Commission Hearing Results (Attachment C) have been attached for review. III. ACTION REQUESTED OF THE TOWN COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 8, Series of 2012, on first reading. The Planning and Environmental Commission recommends the Vail Town Council approves Ordinance No. 8, Series of 2012, on first reading. This recommendation is based upon the review of the criteria outlined in the May 14, 2012, memorandum to the Planning and Environmental Commission and the evidence and testimony presented. Should the Vail Town Council choose to approve Ordinance No. 8, Series of 2012, on first reading; the Planning and Environmental Commission recommends the Council passes the following motion: “The Vail Town Council approves Ordinance No. 8, Series of 2012, an ordinance amending the Official Zoning Map to rezone the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District, located at 1778 Sunburst Drive / Vail Golf Course Clubhouse Parcel, and setting forth details in regard thereto.” Should the Vail Town Council choose to approve Ordinance No. 8, Series of 2012; the Planning and Environmental Commission recommends the Council makes the following findings: “Based upon the review of the criteria outlined in the May 14, 2012, memorandum to the Planning and Environmental Commission and the evidence and testimony presented, the Vail Town Council finds: 10 - 1 - 2 6/5/2012 Town of Vail Page 3 1. That the amendments are consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town. 2. That the amendments are compatible with and suitable to adjacent uses and appropriate for the surrounding areas. 3. That the amendments promote the health, safety, morals, and general welfare of the town and promote the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” IV. ATTACHMENTS A. Ordinance No. 8, Series 2012 B. May 14, 2012, Memorandum to the Planning and Environmental Commission C. May 14, 2012, Draft Planning and Environmental Commission Hearing Results 10 - 1 - 3 6/5/2012 Ordinance No. 8, Series of 2012 1 ORDINANCE NO. 8 SERIES OF 2012 AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP TO REZONE THE VAIL GOLF COURSE CLUBHOUSE PARCEL FROM THE OUTDOOR RECREATION DISTRICT TO THE GENERAL USE DISTRICT, LOCATED AT 1778 SUNBURST DRIVE/VAIL GOLF COURSE CLUBHOUSE PARCEL, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail, in the County of Eagle and State of Colorado (the "Town"), is a home rule municipal corporation duly organized and existing under laws of the State of Colorado and the Vail Town Charter; WHEREAS, zone district boundaries shown on the Official Zoning Map may be amended pursuant to the provisions of Section 12-3-7, Amendment, Vail Town Code; WHEREAS, the Vail Golf Course clubhouse and parking lot are located on separate parcels. The Vail Golf Course clubhouse site is located in the Outdoor Recreation District and the parking lot is located in the General Use District. The purpose of this ordinance is to consolidate the Vail Golf Course clubhouse and parking lot into the same zone district; WHEREAS, on November 8, 2011, the Vail electorate approved ballot question #1 which re-allocated conference center funds, in part, for the “Expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.” The purpose of this ordinance is also to facilitate the expansion and improvement of the Vail Golf Course clubhouse in response to the November 8, 2011, election; WHEREAS, on May 14, 2012, the Planning and Environmental Commission held a public hearing and approved, with conditions, a final plat establishing the Vail Golf Course Clubhouse Parcel. At that same hearing, the Planning and Environmental Commission held a public hearing and forwarded a recommendation of approval for the rezoning of the Vail Golf Course Clubhouse Parcel from the Outdoor Recreation District to the General Use District by a vote of 4-3-0; WHEREAS, the Town of Vail Planning and Environmental Commission and the Vail Town Council find that the amendments are consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; WHEREAS, the Town of Vail Planning and Environmental Commission and the Vail Town Council find that the amendments are compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and WHEREAS, the Town of Vail Planning and Environmental Commission and the Vail Town Council find that the amendments promote the health, safety, morals, and general welfare of the town and promote the coordinated and harmonious development 10 - 2 - 1 6/5/2012 Ordinance No. 8, Series of 2012 2 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. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Pursuant to Section 12-3-7, Amendment, Vail Town Code, this ordinance adopts amendments to the zone district boundaries shown on the Official Zoning Map to rezone the Vail Golf Course Clubhouse Parcel, located at 1778 Sunburst Drive, from the Outdoor Recreation District to the General Use District as further described in Exhibit A of this ordinance. This amendment to the Official Zoning Map shall be effective upon the adoption of this ordinance. Section 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 effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 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. Section 4. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 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 ON FIRST READING this 5th day of June, 2012, and a public hearing for second reading of this Ordinance set for the 19th day of June, 2012, at 6:00 P.M. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. _________________________ Andrew P. Daly, Mayor ATTEST: _____________________________ Lorelei Donaldson, Town Clerk 10 - 2 - 2 6/5/2012 S U N B U R S T D R FA L L R I D G E R D S FRONTA G E RD E GOLF LN F A L L R I D G E D R Vail Golf Course Clubhouse 0125250 Feet Vail Golf Course ClubhouseVail Golf Course Clubhouse (1775 Sunburst Drive)(1775 Sunburst Drive) This map was created by the Town of Vail GIS Team. Use of this map should be for general purposes only. The Town of Vail does not warrant the accuracy of the information contained herein. (where shown, parcel line work is approximate) Last Modified: April 20, 2012 Existing Zoning Single-Family Residential (SFR) Two-Family Primary/Secondary Residential (PS) Low Density Multiple Family (LDMF) Outdoor Recreation (OR) Natural Area Preservation (NAP) General Use (GU) S U N B U R S T D R FA L L R I D G E R D S FRONTA G E RD E GOLF LN F A L L R I D G E D R Proposed Zoning Single-Family Residential (SFR) Two-Family Primary/Secondary Residential (PS) Low Density Multiple Family (LDMF) Outdoor Recreation (OR) Natural Area Preservation (NAP) General Use (GU) 10 - 2 - 3 6/5/2012 TO: Planning and Environmental Commission FROM: Community Development Department DATE: May 14, 2012 SUBJECT: A request for the review of a final plat, pursuant to Chapter 13-4, Minor Subdivision, Vail Town Code, to allow for the Vail Golf Course parking lot and the Vail Golf Course clubhouse to be combined into a si ngle lot, located at 1778 Sunburst Drive/Lot 3, Sunburst Filing 3, and part of an unplatted parcel (a complete metes and bounds description is available at the Community Development Department Office), and setting forth details in regard thereto. (PEC120023) A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning of the Vail Golf Course Clubhouse from the Outdoor Recreation District to the General Use District, located at 1778 Sunburst Drive/Part of an unplatted parcel (a complete metes and bounds description is available at the Community Development Department Office), and setting forth details in regard thereto. (PEC120019) Applicant: Town of Vail Planner: Bill Gibson I. SUMMARY The applicant, the Town of Vail, is requesting the review of two items: x a final plat to resubdivide a portion of the unplatted Vail Golf Course as the Vail Golf Course Clubhouse Parcel x a rezoning of the proposed Vail Golf Course Clubhouse Parcel from Outdoor Recreation District to General Use District Based upon Staff’s review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission approves, with a condition, the proposed final plat subject to the findings noted in Section IX of this memorandum. 10 - 3 - 1 6/5/2012 Town of Vail Page 2 Based upon Staff’s review of the criteria outlined in Section VIII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the proposed rezoning subject to the findings noted in Section IX of this memorandum. II. DESCRIPTION OF THE REQUEST The applicant, the Town of Vail, is no longer proposing to combine the Vail Golf Course clubhouse site and the golf course parking lot (Lot 3, Sunburst Filing 3) into a single lot of record. Instead, the Town of Vail is proposing the resubdivide the clubhouse site as the Vail Golf Course Clubhouse Parcel. The proposed Vail Golf Course Clubhouse Parcel and Lot 3, Sunburst Filing 3 will be considered one development site for zoning purposes as permitted by Chapter 12-2, Definitions, Vail Town Code. The existing golf course parking lot is zoned General Use District. The existing golf course clubhouse is zoned Outdoor Recreation Distri ct. The applicant, Town of Vail, is proposing to rezone the clubhouse site (proposed Vail Golf Course Clubhouse Parcel) from the Outdoor Recreation District to the General Use District which is the same zoning as the parking lot. The proposed final plat and rezoning applications are intended to facilitate future renovations to the Vail Golf Course clubhouse building in response to the 2011 election in which the Vail electorate re-allocated conference center funds specifically for the “expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.” A vi cinity map (Attachment A), proposed final plat (Attachment B), and proposed zoning map amendments (Attachment C) have been attached for review. III. BACKGROUND The Vail Golf Course was constructed under Eagle County jurisdiction in the 1960’s. In 1972, the subject portions of the Vail Golf Course (clubhouse and parking lot sites ) were annexed into the Town of Vail through Ordinance No. 5, Series of 1972. While it is not clear from the Town’s archives, the golf course clubhouse site appears to have been subsequently zoned Agriculture District. In 1973, the Town of Vail approved a final plat for the Sunburst at Vail Subdivision which included the golf course parking lot property. On August 7, 1973, the Town of Vail adopted Ordinance No. 8, Series of 1973, which established comprehensive zoning regulations for the Town of Vail. In establishing comprehensive regulations, this ordinance created 12 new zone districts including the Agriculture and Open Space District. The golf course clubhouse was site subsequently 10 - 3 - 2 6/5/2012 Town of Vail Page 3 rezoned to the Agriculture and Open Space District. This ordinance also established Special Development District No. 1 for the “Sunburst Development”, which included the golf course parking lot property. On August 16, 1977, the Town of Vail adopted Ordinance No. 17, Series of 1977, which rezoned the golf course parking lot property from Special Development District No. 1 to the Public Use District. On September 14, 1977, the Town of Vail approved the Sunburst Filing 2 plat which established the golf course parking lot property as Lot 3. On December 20, 1977, the Town of Vail approved the final plat for Sunburst Filing 3, a re-subdivision of Sunburst Filing 2. In January of 1984, the Town of Vail purchased the Vail Golf Course property from the Pulis Ranch. On October 4, 1994, the Town of Vail adopted Ordinance No. 21, Series of 1994. In part, this ordinance repealed the Public Use District and reestablished it as the General Use District. This ordinance also established a new zone district named the Outdoor Recreation District. On November 7, 1995, the Vail Town Council adopted Ordinance No. 19, Series of 1995, which rezoned 67 properties to the Natural Area Preservation District, Outdoor Recreation District, or General Use District. Portions of the Vail Golf Course were rezoned from the Agriculture and Open Space District to the new Outdoor Recreation District. This ordinance also amended the Outdoor Recreation District to allow “golf course” as a permitted use. In 2000, the Vail Jr. Hockey Association, Vail Recreation District, and Town of Vail proposed constructing a seasonal ice rink at the Vail Golf Course driving range. To facilitate construction of the proposed seasonal ice rink, three development applications were submitted: minor subdivision, rezoning, and a conditional use permit. On September 25, 2000, the Planning and Environmental Commission approved a final plat to subdivide the golf course clubhouse and dri ving range sites into a new Vail Golf Course Clubhouse Subdivision and a conditional use permit for the construction of a seasonal ice rink. The Commission forwarded a recommendation of approval to the Vail Town Council for the proposed rezoning of the clubhouse and driving range from Outdoor Recreation District to General Use District. On April 17, 2001, the Vail Town Council adopted Ordinance No. 9, Series of 2001, to rezone the Vail Golf Course Clubhouse Subdivision from Outdoor Recreation District to the General Use District. Adjacent property owners opposed to the seasonal ice rink subsequently filed an appeal of the ice rink approvals. A court decision on the appeal nullified the rezoning of the golf 10 - 3 - 3 6/5/2012 Town of Vail Page 4 course club house and driving range due to procedural errors. The merits of the rezoning were not reviewed by the court. The Vail Golf Course Clubhouse Subdivision final plat was not executed and recorded within the one-year timeframe prescribed by the Planning and Environmental Commission, so the Commission’s approval of the plat expired. Rather than pursuing the rezoning of the golf course clubhouse and driving range further, the Vail Jr. Hockey Associated, Vail Recreation District, and Town of Vail chose instead to propose amendments to the Outdoor Recreation District to allow the seasonal ice rink at the golf course driving range. On October 14, 2002, the Planning and Environmental Commission approved a conditional use permit for the seasonal ice rink contingent upon the Vail Town Council’s approval of amendments of the Outdoor Recreation Di strict. On November 5, 2002, the Vail Town Council adopted Ordinance No. 29, Series of 2002, which allowed a “seasonal use or structure” as a conditional use in the Outdoor Recreation District. On November 8, 2011, the Town of Vail electorate approved ballot question #1 which stated: “Without increasing taxes, shall the Town of Vail use the remainder of the one and one-half percent lodging tax revenues and one-half percent sales tax revenues collected from January 1, 2003 through December 31, 2005 to fund the following projects that will promote recreation, promote tourism and support the economy in the Town of Vail: Expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space; Field expansion and restroom renovation at the Ford Park Sports Complex; and Ford Amphitheater improvements, including outdoor seating and restroom improvements?” The proposed final plat and rezoning applications are intended to facilitate future renovations to the Vail Golf Course clubhouse building in response to the 2011 election. IV. APPLICABLE REGULATIONS VAIL LAND USE PLAN CHAPTER II: LAND USE PLAN GOALS / POLICIES (in part) The goals articulated here reflect the desires of the citizenry as expressed through the series of public meetings that were held throughout the project. A set of initial goals were developed which were then substantially revised after different types of opinions 10 - 3 - 4 6/5/2012 Town of Vail Page 5 were brought out in the second meeting. The goal statements were developed to reflect a general consensus once the public had had the opportunity to reflect on the concepts and ideas initially presented. The goal statements were then revised through the review process with the Task Force, the Planning and Environmental Commission and Town Council and now represent policy guidelines in the review process for new development proposals. These goal statements should be used in conjunction with the adopted Land Use Plan map, in the evaluation of any development proposal. The goal statements which are reflected in the design of the proposed Plan are as follows: 1. General Growth / Development 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.3 The quality of development should be maintained and upgraded whenever possible. 1.10 Development of Town owned lands by the Town of Vail (other than parks and open space) may be permitted where no high hazards exist, if such development is for public use. 1.12 Vail should accommodate most of the additional growth in existing developed areas (in fill areas). 2. Skier / Tourist Concerns 2.1 The community should emphasize its role as a destination resort while accommodating day visitors. 2.4 The community should improve summer recreational options to improve year-round tourism. 2.5 The community should non-skier recreational options to improve year- round tourism. 6. Community Services 6.1 Services should keep pace with increased growth. 6.2 The Town of Vail should play a role in future development through balancing growth with services. 6.3 Services should be adjusted to keep pace with the needs of peak periods. 10 - 3 - 5 6/5/2012 Town of Vail Page 6 CHAPTER VI: PROPOSED LAND USE (IN PART) P – Parks: Included in this category are town owned parcels intended for both active recreation activities such as athletic fields, golf courses and playgrounds, as well as areas for various passive recreation activities. TITLE 12: ZONING REGULATIONS Chapter 12-1: Title, Purpose, Applicability (in part) 12-1-2: Purpose: A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the town, and to promote the coordinated and harmonious development of the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality.\ B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10 - 3 - 6 6/5/2012 Town of Vail Page 7 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. Chapter 12-2: Definitions (in part) LOT OR SITE: A parcel of land occupied or intended to be occupied by a use, building, or structure under the provisions of this title and meeting the minimum requirements of this title. A lot or site may consist of a single lot of record, a portion of a lot of record, a combination of lots of record or portions thereof, or a parcel of land described by metes and bounds. Article 12 -8B: Outdoor Recreation District Section 12-8B-1: Purpose The outdoor recreation district is intended to preserve undeveloped or open space lands from intensive development while permitting outdoor recreational activities that provide opportunities for active and passive recreation areas, facilities and uses. 12-8B-2: Permitted Uses The following uses shall be permitted in the OR district: Bicycle and pedestrian paths. Golf courses Interpretive nature walks. Nature preserves. Passive outdoor recreation areas and open spaces. 12-8B-3: Conditional Uses The following conditional uses shall be permitted, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Accessory buildings (permanent and temporary) and uses customarily incidental and accessory to permitted or conditional outdoor recreational uses, and necessary for the operation thereof, including restrooms, drinking fountains, bleachers, concessions, storage buildings, and similar uses. Cemeteries. Communications antennas and appurtenant equipment. 10 - 3 - 7 6/5/2012 Town of Vail Page 8 Equestrian trails, used only to access national forest system lands. Public parks and active public outdoor recreation areas and uses, excluding buildin gs. Public utility and public service uses. Seasonal use or structure. Ski lifts, tows and runs. Well water treatment facilities 12-8B-4: Accessory Uses The following accessory uses shall be permitted in the OR district: Accessory uses in the OR district are subject to conditional use permit review in accordance with the provisions of chapter 16 of this title. 12-8B-5: Lot Area And Site Dimensions: Not applicable in the OR district. 12-8B-6: Setbacks: In the OR district, the minimum setback shall be twenty feet (20') from all property lines, except as may be further restricted by the planning and environmental commission in conjunction with the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title. 12-8B-7: Height: For a flat roof or mansard roof, the height of buildings shall not exceed twenty one feet (21'). For a sloping roof, the height of buildings shall not exceed twenty four feet (24'). 12-8B-8: Density: Not applicable in the OR district. 12-8B-9: Site Coverage: Site coverage shall not exceed five percent (5%) of the total site area. 12-8B-10: Landscaping And Site Development: Landscape requirements shall be determined by the design review board in accordance with chapter 11 of this title. 12-8B-11: Parking: Off street parking shall be provided in accordance with chapter 10 of this title. 10 - 3 - 8 6/5/2012 Town of Vail Page 9 12-8B-12: Additional Development Standards: Additional regulations pertaining to site development standards and the development of land in the outdoor recreation distr ict are found in chapter 14 of this title. Article 12-9C: General Use District (in part) Section 12-9C-1: Purpose The general use district is intended to provide sites for public and quasi-public uses which, because of their special characteristics, cannot be appropriately regulated by the development standards prescribed for other zoning districts, and for which development standards especially prescribed for each particular development proposal or project are necessary to achieve the purposes prescribed in section 12-1-2 of this title and to provide for the public welfare. The general use district is intended to ensure that public buildings and grounds and certain types of quasi-public uses permitted in the district are appropriately located and designed to meet the needs of residents and visitors to Vail, to harmonize with surrounding uses, and, in the case of buildings and other structures, to ensure adequate light, air, open spaces, and other amenities appropriate to the permitted types of uses. 12-9C-2: Permitted Uses The following uses shall be permitted in the GU district: Bicycle and pedestrian paths. Communications antennas and appurtenant equipment. Employee housing units, as further regulated by chapter 13 of this title. Passive outdoor recreation areas, and open space. 12-9C-3: Conditional Uses A. Generally: The following conditional uses shall be permitted in the GU district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Child daycare centers. Equestrian trails. Golf courses. Healthcare facilities. Helipad for emergency and/or community use. 10 - 3 - 9 6/5/2012 Town of Vail Page 10 Major arcades. Plant and tree nurseries, and associated structures, excluding the sale of trees or other nursery products, grown, produced or made on the premises. Public and private parks and active outdoor recreation areas, facilities and uses. Public and private schools. Public and quasi-public indoor community facilities. Public buildings and grounds. Public parking structure. Public theaters, meeting rooms and convention facil ities. Public tourist/guest service related facilities. Public transportation terminals. Public unstructured parking. Public utility and public service uses. Religious institutions. Seasonal structures or uses to accommodate educational, recreational or cultural activities. Ski lifts, tows and runs. Water and sewage treatment plants. B. Proximity To Parking Required: The following conditional uses shall be permitted in accordance with the issuance of a conditional use permit, provided such use is accessory to a parking structure: Offices. Restaurants. Ski and bike storage facilities. Sundries shops. 10 - 3 - 10 6/5/2012 Town of Vail Page 11 Tourist/guest service related facilities. Transit/shuttle services. 12-9C-4: Accessory Uses The following accessory uses shall be permitted in the GU district: Minor arcades. Other uses customarily incidental and accessory to permitted or conditional uses, and necessary for the operation thereof, with the exception of buildings. 12-9C-5: Development Standards A. Prescribed By Planning And Environmental Commission: In the general use district, development standards in each of the following categories shall be as prescribed by the planning and environmental commission: 1. Lot area and site dimensions. 2. Setbacks. 3. Building height. 4. Density control. 5. Site coverage. 6. Landscaping and site development. 7. Parking and loading. B. Reviewed By Planning And Environmental Commission: Development standards shall be proposed by the applicant as a part of a conditional use permit application. Site specific development standards shall then be determined by the planning and environmental commission during the review of the conditional use request in accordance with the provisions of chapter 16 of this title. 12-9C-6: Additional Development Standards Additional regulations pertaining to site development standards and the development of land in the general use district are found in chapter 14 of this title. TITLE 13, SUBDIVISION REGULATIONS, VAIL TOWN CODE (IN PART) CHAPTER 13-1: GENERAL PROVISIONS (in part) Section 13-1-2: Purpose A. Statutory Authority: The subdivision regulations contained in this title have been prepared and enacted in accordance with Colorado Revised Statutes title 31, article 23, for the purpose of promoting the health, safety and welfare of the present and future inhabitants of the town. 10 - 3 - 11 6/5/2012 Town of Vail Page 12 B. Goals: To these ends, these regulations are intended to protect the environment, to ensure efficient circulation, adequate improvements, sufficient open space and in general, to assist the orderly, efficient and integrated development of the town. These regulations also provide for the proper arrangement of streets and ensure proper distribution of population. The regulations also coordinate the need for public services with governmental improvement programs. Standards for design and construction of improvements are hereby set forth to ensure adequate and convenient traffic circulation, utilities, emergency access, drainage, recreation and light and air. Also intended is the improvement of land records and surveys, plans and plats and to safeguard the interests of the public and subdivider and provide consumer protection for the purchaser; and to regulate other matters as the town planning and environmental commission and town council may deem necessary in order to protect the best interests of the public. C. Specific Purposes: These regulations are further intended to serve the following specific purposes: 1. To inform each subdivider of the standards and criteria by which development proposals will be evaluated, and to provide information as to the type and extent of improvements required. 2. To provide for the subdivision of property in the future without conflict with development on adjacent land. 3. To protect and conserve the value of land throughout the municipality and the value of buildings and improvements on the land. 4. To ensure that subdivision of property is in compliance with the town's zoning ordinances, to achieve a harmonious, convenient, workable relationship among land uses, consistent with town development objectives. 5. To guide public and private policy and action in order to provide adequate and efficient transportation, water, sewage, schools, parks, playgrounds, recreation, and other public requirements and facilities and generally to provide that public facilities will have sufficient capacity to serve the proposed subdivision. 6. To provide for accurate legal descriptions of newly subdivided land and to establish reasonable and desirable construction design standards and procedures. 7. To prevent the pollution of air, streams and ponds, to assure adequacy of drainage facilities, to safeguard the water table and to encourage the wise use and management of natural resources throughout the town in order to preserve the integrity, stability and beauty of the community and the value of the land. V. SITE ANALYSIS AND ZONE DISTRICT COMPARISON 10 - 3 - 12 6/5/2012 Town of Vail Page 13 Vail Golf Course Parking Lot Address: 1778 Sunburst Drive Legal Description: Lot 3, Sunburst Filing 3 Zoning: General Use District Land Use Designation: Park Mapped Geological Hazards: High Severity Rockfall Lot Area: 1.012 acres (44,083 sq. ft.) Vail Golf Course Clubhouse Address: 1778 Sunburst Drive Existing Legal Description: Part of an unplatted parcel Proposed Legal Description: Vail Golf Course Clubhouse Parcel Existing Zoning: Outdoor Recreation District Proposed Zoning: General Use District Land Use Designation: Park Mapped Geological Hazards: High Severity Rockfall Existing Lot Area: n/a (part of a 57.3 acre unplatted parcel) Proposed Lot Area: 3.241 acres / 141,178 sq. ft. Development Standard Outdoor Recreation District General Use District Lot Area/Site Dimensions n/a per PEC Setbacks 20 ft. or more restrictive per PEC per PEC Height 21 ft. flat / 24 ft. sloping per PEC Density n/a per PEC Site Coverage 5% of total site area per PEC Landscaping per DRB per PEC Parking per 12-10, Vail Town Code per PEC VI. SURROUNDING LAND USES AND ZONING Existing Use Zoning District North: Golf Course Outdoor Recreation District South: Residential Single Family District West: Residential Low Density Multiple Family District East: Residential Two -Family Primary/Secondary District VII. FINAL PLAT REVIEW CRITERIA 10 - 3 - 13 6/5/2012 Town of Vail Page 14 Before acting on a final plat application, the Planning and Environmental Commission shall consider the following factors with respect to the proposed use: 1. The extent to which the proposed subdivision is consistent with all the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and The proposed final plat is intended to facilitate future renovations to the Vail Golf Course clubhouse building in response to the 2011 election in which the Vail electorate re- allocated conference center funds specifically for the “expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space” which Staff finds consistent with the development objectives of the Town. The Vail Golf Course is designated as Park by the Vail Land Use Plan. Staff finds the proposed subdivision to be consistent the purpose of the Park land use designation: P – Parks: Included in this category are town owned parcels intended for both active recreation activities such as athletic fields, golf courses and playgrounds, as well as areas for various passive recreation activities. Staff finds the proposed final plat to be consistent with the following goals of the Vail Land Use Plan: 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.3 The quality of development should be maintained and upgraded whenever possible. 1.10 Development of Town owned lands by the Town of Vail (other than parks and open space) may be permitted where no high hazards exist, if such development is for public use. 1.12 Vail should accommodate most of the additional growth in existing developed areas (in fill areas). 2.1 The community should emphasize its role as a destination resort while accommodating day visitors. 2.4 The community should improve summer recreational options to improve year- round tourism. 2.5 The community should non-skier recreational options to improve year-round tourism. 10 - 3 - 14 6/5/2012 Town of Vail Page 15 6.1 Services should keep pace with increased growth. 6.2 The Town of Vail should play a role in future development through balancing growth with services. 6.3 Services should be adjusted to keep pace with the needs of peak periods. Staff believes the proposed final plat is consistent with the purposes of the Town’s Subdivision Regulations, the purposes of the Outdoor Recreation District, and the purposes of the General Use District as outlined in Section IV of this memorandum. Staff finds the proposed final plat is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town. Staff believes the proposed final plat is therefore consistent with this criterion. 2. The extent to which the proposed subdivision complies with all of the standards of Title 13, Subdivision Regulations, Vail Town Code, as well as, but not limited to, Title 12, Zoning Regulations, Vail Town Code, and other pertinent regulations that the planning and environmental commission deems applicable; and There are no lot area or dimension requirements in the Outdoor Recreation District. Section 12-8B-5, Lot Area and Site Dimensions, Vail Town Code, states: “Not applicable in the OR district.” The existing 57.3 acre unplatted golf course parcel will not be rendered non-conforming by re-subdividing the proposed 3.241 acre clubhouse site as a separate parcel. Development standards, including Lot Area and Site Dimensions, are prescribed by the Planning and Environmental Commission in the General Use District. Staff finds the proposed lot area (3.241 acres) and dimensions are consistent with the purpose of the General Use District identified in Section 12-9C-1, Purpose, Vail Town Code: The general use district is intended to provide sites for public and quasi-public uses which, because of their special characteristics, cannot be appropriately regulated by the development standards prescribed for other zoning districts, and for which development standards especially prescribed for each particular development proposal or project are necessary to achieve the purposes prescribed in section 12-1-2 of this title and to provide for the public welfare. The general use district is intended to ensure that public buildings and grounds and certain types of quasi-public uses permitted in the district are appropriately located and designed to meet the needs of residents and visitors to Vail, to harmonize with surrounding uses, and, in the case of buildings and other structures, to ensure adequate light, air, open spaces, and other amenities appropriate to the permitted types of uses. 10 - 3 - 15 6/5/2012 Town of Vail Page 16 Staff believes the proposed final plat complies with the applicable requirements of the Town’s Subdivision Regulations and Zoning Regulations, and is therefore consistent with this review criterion. 3. The extent to which the proposed subdivision presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and As identified above, Staff believes the proposed final plat is consistent with the recommendations of the Vail Land Use Plan and the purposes of the adopted Zoning Regulations. This proposed final plat does not expand the developable area of the Vail Golf Course beyond its existing boundaries. Therefore, Staff does not believe the proposed final plat will have significant negative affects on the future development of the surrounding area in comparison to existing conditions. 4. The extent of the effects on the future development of the surrounding area; and This proposed final plat does not expand the developable area of the Vail Golf Course beyond its existing boundaries. Therefore, Staff does not believe the proposed final plat will have significant negative affects on the future development of the surrounding area in comparison to existing conditions. 5. The extent to which the proposed subdivision is located and designed to avoid creating spatial patterns that cause inefficiencies in the delivery of public services, or require duplication or premature extension of public facilities, or result in a "leapfrog" pattern of development; and This proposed final plat does not expand the developable area of the Vail Golf Course beyond its existing boundaries. Staff does not believe the proposed final plat will have significant negative affects on the community’s special patterns in comparison to existing conditions. 6. The extent to which the utility lines are sized to serve the planned ultimate population of the service area to avoid future land disruption to upgrade undersized lines; and Utility services exist for the subject property. Staff does not believe the proposed final plat will have significant negative affects on utilities in comparison to existing conditions. 7. The extent to which the proposed subdivision provides for the growth of an orderly viable community and serves the best interests of the community as a whole; and This proposed final plat does not expand the developable area of the Vail Golf Course beyond its existing boundaries. The proposed final plat and rezoning applications are intended to facilitate future renovations to the Vail Golf Course clubhouse building in 10 - 3 - 16 6/5/2012 Town of Vail Page 17 response to the 2011 election in which the Vail electorate re-allocated conference center funds specifically for the “expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.” Therefore, Staff believes the proposed final plat provides for growth in an orderly manner. 8. The extent to which the proposed subdivision results in adverse or beneficial impacts on the natural environment, including, but not limited to, water quality, air quality, noise, vegetation, riparian corridors, hillsides and other desirable natural features; and This proposed final plat does not expand the developable area of the Vail Golf Course beyond its existing boundaries. Staff does not believe the proposed final plat will have significant negative impacts to the natural environment in comparison to existing conditions. 9. Such other factors and criteria as the commission and/or council deem applicable to the proposed subdivision. VIII. ZONE DISTRICT BOUNDARY AMENDMENT CRITERIA Before acting on a zone district boundary amendment application, the Planning and Environmental Commission shall consider the following factors with respect to this proposal: 1. The extent to which the zone district amendment is consistent with all the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town. The proposed rezoning is intended to facilitate future renovations to the Vail Golf Course clubhouse building in response to the 2011 election in which the Vail electorate re-allocated conference center funds specifically for the “expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space” which Staff finds consistent with the development objectives of the Town. The Vail Golf Course is designated as Park by the Vail Land Use Plan. Ford Park, Donovan Park, and the golf course parking lot are other prominent Town of Vail owned properties that are designated as Park by the Vail Land Use Plan and zoned General Use District. Staff finds the proposed rezoning to be consistent the purpose of the Park land use designation: P – Parks: Included in this category are town owned parcels intended for both active recreation activities such as athletic fields, golf courses and playgrounds, as well as areas for various passive recreation activities. 10 - 3 - 17 6/5/2012 Town of Vail Page 18 Staff finds the proposed rezoning to be consistent with the following goals of the Vail Land Use Plan: 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.3 The quality of development should be maintained and upgraded whenever possible. 1.10 Development of Town owned lands by the Town of Vail (other than parks and open space) may be permitted where no high hazards exist, if such development is for public use. 1.12 Vail should accommodate most of the additional growth in existing developed areas (in fill areas). 2.1 The community should emphasize its role as a destination resort while accommodating day visitors. 2.4 The community should improve summer recreational options to improve year- round tourism. 2.5 The community should non-skier recreational options to improve year-round tourism. 6.1 Services should keep pace with increased growth. 6.2 The Town of Vail should play a role in future development through balancing growth with services. 6.3 Services should be adjusted to keep pace with the needs of peak periods. Staff finds the proposed rezoning to be consistent with the following general and specific purposes of the Town’s adopted Zoning Regulations: 12-1-2: Purpose: A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the town, and to promote the coordinated and harmonious development of the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 10 - 3 - 18 6/5/2012 Town of Vail Page 19 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. Staff finds the proposed rezoning to be consistent with the purpose of the General Use District identified in Section 12-9C-1, Purpose, Vail Town Code: The general use district is intended to provide sites for public and quasi-public uses which, because of their special characteristics, cannot be appropriately regulated by the development standards prescribed for other zoning districts, and for which development standards especially prescribed for each particular development proposal or project are necessary to achieve the purposes prescribed in section 12-1-2 of this title and to provide for the public welfare. The general use district is intended to ensure that public buildings and grounds and certain types of quasi-public uses permitted in the district are appropriately located and designed to meet the needs of residents and visitors to Vail, to harmonize with surrounding uses, and, in the case of buildings and other structures, to ensure adequate light, air, open spaces, and other amenities appropriate to the permitted types of uses. Therefore, Staff believes the proposed rezoning meets this review criterion. 10 - 3 - 19 6/5/2012 Town of Vail Page 20 2. The extent to which the zone district amendment is suitable with the existing and potential land uses on the site and existing and potential surrounding land uses as set out in the town's adopted planning documents. A “golf course” is allowed as a permitted use in the Outdoor Recreation District and as a conditional use in the General Use District. The proposed rezoning continues to allow the existing golf course uses on the subject site. The clubhouse and other golf course uses can be expanded and modified under both the existing and proposed zoning. The proposed rezoning application is intended to facilitate future renovations to the Vail Golf Course clubhouse building in response to the 2011 election in which the Vail electorate re-allocated conference center funds specifically for the “expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.” Future changes to the golf course clubhouse will invol ve Planning and Environmental Commission review of a conditional use permit application and notification to the adjacent property owners only if the property is rezoned to the General Use District. The General Use District provides both greater flexibility and greater control in regulating these future renovations than the Outdoor Recreation District. Staff does not believe the proposed rezoning of the subject property will alter the suitability of the golf course on the site or with surrounding use. Therefore, Staff finds the proposed rezoning meets this review criterion. 3. The extent to which the zone district amendment presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives. Staff believes the existing golf course currently has a harmonious, convenient, and workable relationship among land uses in the surrounding neighborhood. Staff does not believe the proposed rezoning of the subject property will alter this relationship. Therefore, Staff finds the proposed rezoning meets this review criterion. 4. The extent to which the zone district amendment provides for the growth of an orderly viable community and does not constitute spot zoning as the amendment serves the best interests of the community as a whole. The Vail Golf Course is designated as Park by the Vail Land Use Plan. Ford Park, Donovan Park, and the golf course parking lot are other prominent Town of Vail owned properties that are designated as Park by the Vail Land Use Plan and zoned General Use District. The applicant is proposing that the golf course clubhouse be zoned the same district as the golf course clubhouse parking lot. Therefore, Staff does not believe the applicant’s proposal constitutes a spot zoning and therefore finds the proposed rezoning meets this review criterion. 5. The extent to which the zone district amendment results in adverse or beneficial impacts on the natural environment, including, but not limited to, water 10 - 3 - 20 6/5/2012 Town of Vail Page 21 quality, air quality, noise, vegetation, riparian corridors, hillsides and other desirable natural features. The Vail Golf Course may continue and may be expanded or modified under both the existing and proposed zoning. Staff finds that rezoning of this property from the Outdoor Recreation District to the General Use District will not alter the impacts on the natural environment in comparison to existing conditions. Therefore, Staff finds the proposed rezoning meets this review criterion. 6. The extent to which the zone district amendment is consistent with the purpose statement of the proposed zone district. As identified above, Staff finds that the proposed rezoning is consistent with the purpose of the General Use District as outlined in Section IV of this memorandum. Therefore, Staff believes the proposed rezoning meets this review criterion. 7. The extent to which the zone district amendment demonstrates how conditions have changed since the zoning designation of the subject property was adopted and is no longer appropriate. The proposed rezoning application is intended to facilitate future renovations to the Vail Golf Course clubhouse building in response to the 2011 election in which the Vail electorate re-allocated conference center funds specifically for the “expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.” The General Use District provides both greater flexibility and greater control in regulating these future renovations than the Outdoor Recreation District. Therefore, Staff finds the proposed rezoning meets this review criterion. 8. Such other factors and criteria as the commission and/or council deem applicable to the proposed rezoning. IX. STAFF RECOMMENDATION Final Plat Based upon the review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission approves, with a condition, this request for the review of a final plat, pursuant to Chapter 13-4, Minor Subdivision, Vail Town Code, to resubdivide a porti on of the unplatted Vail Golf Course as the Vail Golf Course Clubhouse Parcel, located at 1778 Sunburst Drive/Lot 3, Sunburst Filing 3, and part of an unplatted parcel, and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to approve this final plat, the Community Development Department recommends the Commission makes the following motion: 10 - 3 - 21 6/5/2012 Town of Vail Page 22 “The Planning and Environmental Commission approves this request for the review of a final plat, pursuant to Chapter 13-12, Exemption Plat Review Procedures, Vail Town Code, to resubdivide a portion of the unplatted Vail Golf Course as the Vail Golf Course Clubhouse Parcel, located at 1778 Sunburst Drive/Lot 3, Sunburst Filing 3, and part of an unplatted parcel, and setting forth details in regard thereto.” Should the Planning and Environmental Commission choose to approve this final plat, the Community Development Department recommends the Commission impose the following condition: “1. Approval of this final plat is continent upon the rezoning of the subject property from the Outdoor Recreation District to the General Use District.” Should the Planning and Environmental Commission choose to approve this final plat, the Community Development Department recommends the Commission makes the following findings: “Based upon the review of the criteria outlined in Section VII of the Staff memorandum to the Planning and Environmental Commission dated May 14, 2012, and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. The final plat is in compliance with the criteria prescribed by Chapter 13-12, Exemption Plat Review Procedures, Vail Town Code. 2. The final plat is consistent with the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and compatible with the development objectives of the town. 3. The final plat is compatible with and suitable to adjacent uses and appropriate for the surrounding areas. 4. The final plat 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.” Rezoning Based upon the review of the criteria outlined in Section VIII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning an Environmental Commission forwards a recommendation of approval to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning of the Vail Golf 10 - 3 - 22 6/5/2012 Town of Vail Page 23 Course Clubhouse from the Outdoor Recreation Distri ct to the General Use District, located at 1778 Sunburst Drive/Part of an unplatted parcel (proposed Vail Golf Course Clubhouse Parcel), and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to forward a recommendation of approval for this request, the Community Development Department recommends the Commission makes the following motion: “The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning of the Vail Golf Course Clubhouse from the Outdoor Recreation District to the General Use District, located at 1778 Sunburst Drive/Part of an unplatted parcel (proposed Vail Golf Course Clubhouse Parcel), and setting forth details in regard thereto.” Should the Planning and Environmental Commission choose to recommend approval of this request; the Community Development Department recommends the Commission makes the following findings: “Based upon the review of the criteria outlined in Sections VII and VIII of the Staff memorandum to the Planning and Environmental Commission dated May 14, 2012,and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendments are consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town. 2. That the amendments are compatible with and suitable to adjacent uses and appropriate for the surrounding areas. 3. That the amendments promote the health, safety, morals, and general welfare of the town and promote the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” X. ATTACHMENTS A. Vicinity Map B. Proposed Plat C. Proposed Zoning Map Amendment 10 - 3 - 23 6/5/2012 SUNBURST DR FA L L R I D G E R D GOLF LN GOLF TER F A L L R I D G E D R Vail Golf Course Clubhouse 075150 Feet Vail Golf CourseVail Golf Course (1775 Sunburst Drive)(1775 Sunburst Drive) This map was created by the Town of Vail GIS Team. Use of this map should be for general purposes only. The Town of Vail does not warrant the accuracy of the information contained herein. (where shown, parcel line work is approximate) Last Modified: April 23, 2012 10 - 3 - 24 6/5/2012 SEE REVISED PLAT 10 - 3 - 25 6/5/2012 S U N B U R S T D R FA L L R I D G E R D S FRONTA G E RD E GOLF LN F A L L R I D G E D R Vail Golf Course Clubhouse 0125250 Feet Vail Golf Course ClubhouseVail Golf Course Clubhouse (1775 Sunburst Drive)(1775 Sunburst Drive) This map was created by the Town of Vail GIS Team. Use of this map should be for general purposes only. The Town of Vail does not warrant the accuracy of the information contained herein. (where shown, parcel line work is approximate) Last Modified: April 20, 2012 Existing Zoning Single-Family Residential (SFR) Two-Family Primary/Secondary Residential (PS) Low Density Multiple Family (LDMF) Outdoor Recreation (OR) Natural Area Preservation (NAP) General Use (GU) S U N B U R S T D R FA L L R I D G E R D S FRONTA G E RD E GOLF LN F A L L R I D G E D R Proposed Zoning Single-Family Residential (SFR) Two-Family Primary/Secondary Residential (PS) Low Density Multiple Family (LDMF) Outdoor Recreation (OR) Natural Area Preservation (NAP) General Use (GU) 10 - 3 - 26 6/5/2012 REVISED 10 - 3 - 27 6/5/2012 Page 1 PLANNING AND ENVIRONMENTAL COMMISSION May 14, 2012 1:00pm TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road W. - Vail, Colorado, 81657 MEMBERS PRESENT MEMBERS ABSENT Susan Bird Luke Cartin Pam Hopkins Michael Kurz Bill Pierce Henry Pratt John Rediker Site Visits None 20 minutes 1. A request for the review of an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for an increase in floor area of eating, drinking or retail establishments in a lodge occupying between ten percent (10%) and fifteen percent (15%) of the total gross residential floor area of the main structure or structures on the site, located at 1 Willow Bridge Road/Lot 2, Sonnenalp Subdivision, and setting forth details in regard thereto. (PEC120020) Applicant: One Willow Bridge Commercial, LLC, represented by Sharon Cohn Planner: Rachel Dimond ACTION: Approved with conditions MOTION: Kurz SECOND: Rediker VOTE: 7-0-0 CONDITIONS: 1. The applicant shall replat the existing pedestrian easement on the north side of One Willow Bridge Road to be parallel with the adjacent right-of-way. 2. The applicant shall provide employee housing mitigation, as required by Chapter 12- 23, Commercial Linkage, Vail Town Code. Rachel Dimond made a presentation per the staff memorandum. Sharon Cohn spoke to the challenges the retail has experienced and how the proposed changes would make the retail more viable. Commissioner Kurz stated that he understands how the current configuration of planters and columns impacts the retail negatively. There was no public input. Commissioner Pierce stated a concern about the loss of the large planters in an area that could use the large trees found in the planters. He suggested that the change to landscaping should be at no net loss in area, species, size, and quantity and added that a few shrubs under some windows are not appropriate. 10 - 4 - 1 6/5/2012 Page 2 Commissioner Pratt highlighted a concern with the planters moving closer to the building, as they would be in shade almost constantly and it may be difficult to grow plants. He also added that the planters near the doors would like become ashtrays. Commissioner Hopkins spoke to the previously existing large planters at the Lodge at Vail and how their removal was a positive aspect of the project. She stated that she believed the proposed plan was appropriate. Commissioner Cartin asked how future restaurant seating areas could be located and how the location of other seating areas elsewhere in Vail were determined. Rachel Dimond described the influences of liquor licensing laws on outdoor dining areas. Cartin asked the applicant about the types of landscaping to be added. Sharon Cohn described the design intent of the landscaping and streetscape design. Commissioner Kurz asked for clarification about the interior division of tenant spaces. Sharon Cohn explained that the retail spaces will be larger than previous divisions. 30 minutes 2. A request for the review of an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, and a recommendation to the Vail Town Council on a major amendment to Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the conversion of a fractional fee club unit to a dwelling unit, located at 16 Vail Road (Sebastian Hotel)/Part of Lots M, N, and O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (PEC120015 & PEC120022) Applicant: Ferruco Vail Ventures LLC, represented by Mauriello Planning Group Planner: Rachel Dimond Conditional Use Permit ACTION: Approved with condition MOTION: Kurz SECOND: Cartin VOTE: 7-0-0 Special Development District Amendment ACTION: Recommendation of Approval MOTION: Kurz SECOND: Cartin VOTE: 7-0-0 Rachel Dimond made a presentation per the staff memorandum. Dominic Mauriello, representing the applicant, spoke to the application and made himself available for any questions. Commissioner Kurz inquired as to whether or not the Commission was going to see more FFUs converting to DUs in this structure. Dominic Mauriello stated that this is likely the only FFU conversion to DU within the Sebastian as it is the singular FFU which does not currently have any fractions sold. There may be future applications for general upgrades to the facility. Commissioner Pratt asked if provisions should be included to mandate that the potential new unit be required to be in the rental pool to ensure that it is a warm unit. 10 - 4 - 2 6/5/2012 Page 3 Rachel Dimond stated that it is possible; however, ensuring compliance is difficult. Dominic Mauriello explained that a requirement to be in the rental pool would make financing difficult, and would make the property a security instead of a second home. He added that no other project has had this requirement, yet the units were mostly in rental pools. Commissioner Pratt spoke to the exchange of a hot bed for potentially a cold bed should it not be included in the rental pool. Commissioner Pierce stated that he had the same thoughts, but the building currently has one dwelling unit and this amendment would take the structure to only two units. 30 minutes 3. A request for the review of amendments to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for renovations to Fire Station No. 2, located at 42 West Meadow Drive/Part of Lot H and Part of Lot I, Vail Village Filing 2, and setting forth details in regard thereto. (PEC120018) Applicant: Town of Vail, represented by Pierce Architects Planner: Bill Gibson ACTION: Approved with condition(s) MOTION: Kurz SECOND: Rediker VOTE: 6-0-1 (Pierce recused) CONDITIONS: 1. This conditional use permit approval is contingent upon the applicant obtaining Town of Vail approval of the associated design review application. 2. Prior to occupancy of the temporary Town of Vail municipal offices, the applicant shall submit a parking plan for review by the Planning and Environmental Commission. 3. Approval of the temporary Town of Vail municipal offices shall be valid for a period of three years (expires May 14, 2015). Commissioner Pierce recused himself due to a conflict of interest. Bill Gibson gave a presentation per the staff memorandum. Jim Buckner of Pierce Architects spoke to the specifics of the proposed plan. Commissioner Kurz inquired as to the appropriateness of the introduction of public restrooms into the fire station. Chief Miller stated that there was an obvious need for the public restrooms due to the number of inquiries they receive on a daily basis. He did not believe they would pose any operation problems for the fire station. Commissioner Bird inquired as to the reduction in the number of vehicle bays. Chief Miller stated that with the construction of Station No. 3, equipment has been redistributed and there is no longer a need for four bays at Station No. 2. Commissioner Kurz inquired as to how fire service will be provided during construction. Chief Miller explained that service would continue to be provided. The details have not been finalized, but the use of the tenant space below La Bottega would likely be occupied by the on- duty staff with the fire truck parked across the street at the fire station parking lot. 10 - 4 - 3 6/5/2012 Page 4 Commissioner Rediker inquired as to how occupancy of the office and EHU would occur. Bill Gibson explained that if necessary, the space would serve as temporary offices during the municipal site redevelopment and then would become employee housing units that would likely offered first to Town employees. Commissioner Pratt stated his concern with the temporary relocation of Town Departments that have significant public interaction to the fire station. The limited parking would not work well for a department such as Community Development, but may work better for a department such as IT. He recommended the Commission approve the application with a condition that a parking plan for the temporary offices be submitted for further review prior to the office relocating. Commissioner Kurz recommended placing a time limit on the approval of the temporary municipal offices. He suggested two years. Commission Pratt voice concern that the municipal site redevelopment project may not be completed within two years and recommended a time limit of three years. 25 minutes 4. A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning of the Vail National Bank Building (US Bank Building) from Special Development District No. 23 with an underlying zoning of Commercial Service Center District to the General Use District, located at 108 South Frontage Road West/Lot D2, Vail Village Filing 2, and setting forth details in regard thereto. (PEC120014) Applicant: Vail Clinic Inc., represented by Rick Pylman and Jim Wear Planner: Warren Campbell ACTION: Tabled to June 11, 2012 MOTION: Kurz SECOND: Cartin VOTE: 7-0-0 Warren Campbell made a presentation per the Staff memorandum. Rick Pylman, representative of the applicant, stated that the Vail Valley Medical Center would like to rezone so that the subject property is zoned identically to the medical center site. This will help facilitate the redevelopment of the property. He then explained the process for redeveloping the hospital, the medical office building and the subject property. He noted that they have received the letter from the Vail Village Homeowner’s Association submitted prior to the hearing. Commissioner Kurz asked Staff for clarification on the Vail Homeowner’s Association letter alleging non-compliance from Section 12-3-7, Vail Town Code. Commissioner Pierce asked if the medical center would be requesting replatting of the property in the future. Rick Pylman clarified that no subdivision is being proposed at this time, but he anticipates one will be submitted at some time in the future. Commissioner Cartin asked for clarification about ownership of the parking lot and its location within two difference parcels and zone districts. Jim Wear explained the history of the parking lot and clarified the rights to the use of that lot. 10 - 4 - 4 6/5/2012 Page 5 Commissioner Cartin asked about plans for the proposed sky bridge pedestrian walk. Warren Campbell explained the timing for the review of that one element of the municipal site redevelopment project. He went on to explain that the section identified in the Vail Homeowners Association letter was referencing the criteria and findings which must be addressed with a rezoning request. He added that the letter was suggesting that the six points raised in the letter did not result in compliance with the criterion and therefore findings could not be made in support. Commissioner Rediker asked what other businesses are currently located in this building. Warren Campbell and Jim Wear identified that all but the existing bank and one business tenant are medical uses associated with the hospital. Commissioner Rediker asked about the zoning status of the bank if the property were rezoned. Warren Campbell clarified that the bank would become a legally non-conforming use. Commissioner Rediker asked how the rezoning would assist the medical center with its future development plans. Rick Pylman identified consistent zoning and simplification of the review process as the primary rationale. Jim Lamont, Vail Homeowner’s Association, clarified that the letter submitted to the PEC was from the Vail Homeowner’s Association board and not from Jim Lamont. He requested that this item be held as a work session rather than a final review to allow the staff report to be fully circulated to all the affected, neighboring property owners. Mr. Lamont asked Warren Campbell to clarify elements of the staff memorandum related to Land Use Plan designations of “Transitional” for some neighboring properties. Warren Campbell read the recommendations for Transitional land use designation from the Land Use Plan. Jim Lamont asked a series of questions about the adoption and amendment of the Land Use Plan. Commissioner Pierce asked Jim Lamont to express his points to the Commission, rather than continuing his series of questions to Staff concerning technical issues about the Land Use Plan. Jim Lamont expressed his concerns about the adverse affects of the medical center on the adjacent properties. He noted that the cart was before the horse. The medical center should be master planned first, and rezoned after. He noted that Ski Club Vail was done in this non- traditional manner, but Ever Vail was master planned first and then rezoned. He is concerned that this area has not been master planned like Vail Village and Lionshead. He is concerned that property rights and property values are being diminished. He identified the review criteria that he does not believe are property addressed by this application. He noted concerns about traffic and how it relates to the medical center, Evergreen, and Weststar Bank Building. He contends that a traffic master plan must precede a rezoning. He noted concerns about a potential helipad and its negative impacts to the natural environment in this area. He believes that the staff memorandum being published on Thursday and with Mother’s Day on Sunday the Board has not been afforded adequate time to fully address this application. 10 - 4 - 5 6/5/2012 Page 6 Commissioner Pierce asked Mr. Lamont to clarify his concerns about the application related to specific code sections identified in their letter. Jim Lamont recommended accepting Rick Pylman’s offer to meet with the Vail Homeowner’s Association group to discuss the application in more detail. He noted that there is a weakness in the Vail Land Use Plan, in the absence of neighborhood master plans, which would discourage owner occupied units. This is not in line with the goals of the Town and is a reverse condemnation of private property. Commissioner Pierce identified that the south side of the street is Primary/Secondary zoning. He asked if the Association’s concerns were a belief that rezoning from an SDD to General Use would further reinforce the transition zone recommendations to preclude residential uses. Jim Lamont believes the proposed rezoning says more and may set precedent beyond what the applicant and the staff intend. The owners in this neighborhood deserve the same dignity of a master plan as the Vail Village and Lionshead. Commissioner Rediker asked Jim Lamont if there were any other issues misrepresented by the staff memorandum. Jim Lamont again summarized their concerns and noted that properties for sale in the neighborhood aren’t selling because there are too many unknowns related to the hospital and the municipal center. Richard Kent, President of the Scorpio Home Owners Association, stated that they did not have adequate time to review the request. They have too many questions and would like to see a development plan and resolution to the location of the helipad before the rezoning moves forward. They requested that the motion be denied. Gwen Scalpello, on her own behalf since she has not had adequate time to speak with her board, stated a concern that her property has been rezoned. She is very concerned about a change from SDD to a broad zoning. She requests that a development plan be reviewed before the rezoning moves forward. Warren Campbell clarified the difference between the Land Use Plan designations and the zoning designations. He clarified that the 9 Vail Road property has not been rezoned. Ron Snow, Scorpio Board member and property owner, believes the hospital has been restructured and wants to remove obstacles. He believes 50 years of history and homeowners are those obstacles. The PEC needs to protect the community and not give up their review rights. The Commission needs to protect the adjacent property owners. RG Jacobs, property manager Scorpio and Alphorn, does not believe the adjacent owners have had adequate time to review the application and he request the item be denied. Joan Norris, representing Skal Haus 1, noted their association’s opposition to the application. Commissioner Pierce noted that the PEC sets the development standards under General Use zoning which allows the Commission to protect the interests of the neighborhood. 10 - 4 - 6 6/5/2012 Page 7 Doris Kirchner, Vail Valley Medical Center, stated their respect for their neighbors. She stated that they do not want to diminish the property rights of their neighbors. She requested, as the applicant, that this application be tabled to allow them to meet with their neighbors. Commission Kurz noted that growth of the medical center is important to the community, but identified the concerns of the neighbors. He does not believe the Town has intentions of promoting one neighbor over another and would not jump to adverse possession. Commissioner Rediker asked staff to look at the criteria and examine potential impacts more closely. Commissioner Bird supported tabling this item to allow the applicant and neighbors to meet. Commissioner Cartin recommended further examination of the Land Use Plan language. He recommended the neighbors provide input to the Commission on setbacks, density, etc. once the development plan is reviewed. He asked the applicant to provide preliminary plans for the redevelopment of the medical center to address rumors about the redevelopment. Commissioner Rediker asked for clarification of whether or not the cart is before the horse in rezoning without a development plan. He asked to be provided examples of properties that were rezoned in the absence of a development plan. 90 minutes 5. A request for the review of conditional use permits, pursuant to Section 12-9C-3, Conditional Uses, Vail Town Code, for a healthcare facility and a public building and grounds, to allow for the redevelopment of the Town of Vail municipal site with a medical research, rehabilitation, and office building and a municipal office building located at 75 and 111 South Frontage Road West/ Unplatted, and setting forth details in regard thereto. (PEC120012) Applicant: Vail MOB, LLC, represented by Triumph Development and Town of Vail, represented by Consilium Partners, Vail Planner: Warren Campbell ACTION: Tabled to May 21, 2012 MOTION: Kurz SECOND: Cartin VOTE: 7-0-0 Warren Campbell presented the staff memorandum. George Ruther introduced the presentation. He updated the Commission on the recent Town Council decision not to proceed with an additional story of for-lease floor area in the building. He also discussed the Town Council’s direction to provide some limited surface parking between the two buildings. He noted that they are holding a public open house discussion about the project in the hallway after the Commission’s hearing. Will Hentschel, Oz Architecture, summarized the revisions made since the Commission’s last hearing. He also presented new plans and renderings of the project that will also be displayed at the public open house. Sherry Dorward summarized the comments received at the Commission’s last hearing and presented the various landscaping options currently being considered. Commissioner Kurz noted his preference for the designs that included outdoor spaces for employees. He doubts these spaces will be utilized much by customers. He commented on parking space access and vehicle maneuverability. He supported the general bulk and mass of the proposed buildings. 10 - 4 - 7 6/5/2012 Page 8 Commissioner Bird agreed with Commissioner Kurz’s comments and noted her preference for outdoor furniture instead of only boulder seating. Commissioner Pratt also agreed with the Kurz and Bird preferred landscape plan option. He recommended incorporating more flower beds along the street. Commissioner Cartin asked about the timing for the medical office building plans. Tim Losa, Zehren Associates, and Michael O’Conner, Triumph Development, suggested that their plans should be provided to staff within two weeks. Commissioner Hopkins recommended the softer landscape themes be incorporated into the first proposed landscape theme. Commissioner Pierce agreed with the other Commissioners in supporting the first landscape plan option presented. Commissioner Pratt asked about the purpose for the proposed building tower. Will Hentschel described the design intent of the tower. Commissioner Pratt recommended making the tower taller to make more of an architectural statement and to be in character with the bulk of the medical center. Commission Kurz agreed with the concept of an iconic tower, but recommended considering alternative tower designs. Jim Lamont, Vail Homeowner’s Association, supported the general design direction. He suggested that the architectural must be in keeping with the international resort market. He discussed the “five finger” street intersection concern that currently exists in the Frontage Road to access the hospital, Evergreen, and Municipal site.. He clarified that the grand boulevard design concept isn’t intended to only address traffic issues. He discussed visions for burying the interstate and this location provides as opportunity to demonstrate how a cut-and-cover approach could be constructed. The grand boulevard vision would allow for several lanes of traffic surrounded by 4-5 story buildings; however, in Vail there is inadequate room for landscaping. He recommends using I-70 to create a perceived building edge. He suggested the long-term road noise issues and recommends that further analysis be done. He noted that direction from the Town is needed to gain support from the public and transportation authorities. 45 minutes 6. A request for the review of amendments to a conditional use permit, pursuant to Section 12-16- 10, Amendment Procedures, Vail Town Code, to allow for the construction of various improvements at Ford Park (realignment of athletic fields, new restroom and concession buildings, new covered outdoor terrace, Gerald R. Ford Amphitheater renovations, park entrance improvements, Betty Ford Alpine Garden welcome center, streetscape improvements, etc.) located at 530, 540, and 580 South Frontage Road East/ Unplatted, and setting forth details in regard thereto. (PEC120003) Applicant: Town of Vail Planner: Bill Gibson ACTION: Tabled to May 21, 2012 MOTION: Kurz SECOND: Cartin VOTE: 7-0-0 Bill Gibson gave a presentation per the staff memorandum. 10 - 4 - 8 6/5/2012 Page 9 Todd Oppenheimer, Town of Vail Public Works, stated that the project is on a tight time frame and will be requesting a tabling of this item to May 21, 2012, to correspond with a retaining wall variance request. Tom Braun, representing the applicant, gave a presentation on the proposed changes that will be presented at the next hearing. Kurt Friesen, of AECOM, spoke to elements regarding the parking, transit, and Betty Ford Way pedestrian/vehicular path. Commissioner Kurz asked about the site plan showing a dumpster where the emergency helipad is thought to be relocated. Todd Oppenheimer stated that there is an upcoming meeting on Wednesday between the Town and CDOT; however, initial indications are that CDOT will not approve the relocation of the helipad to their highway right-of-way at Ford Park. So, the plans are being presented without a helipad. Kurt Friesen continued his presentation discussing the design goals for the athletic fields, highlighting the need of the taller retaining walls along East Betty Ford Way, and discussing plans to restore portions of the Gore Creek stream tract. Pedro Campos, Zehren and Associates, spoke about the athletic field design, storage building, and concessions building adjacent to the athletic fields. He also discussed the proposed amphitheater restroom, lawn seating, and social plaza. Tom Braun wrapped up the presentation highlighting the criteria for the review of the conditional use permit and the rational for the retaining wall height variances that will be requested at the Commission’s next hearing. Commissioner Hopkins thought the plans had progressed well. She suggested that the hand rail along the realigned Betty Ford Way should incorporate public art. She spoke to the queuing of guests for the symphony concerts at the east amphitheater gate and the back up of guests trying to get bags searched. Pedro Campus spoke to how the entrances and new social court yard will address her concerns and the Vail Valley Foundation’s plans to make the east gate for exit only. Commissioner Hopkins spoke to the amphitheater columns in the roofed portion of the amphitheater and how the columns blocking views impact on where people sit on the lawn. She does not believe the lawn seating should be changed, but supports the less formal lawn terracing concept more than previous designs. Commissioner Cartin believed the berm around the sports fields will help to provide some shade. He also inquired about the shuttle shelters shown on the plans. Todd Oppenheimer clarified that the shuttle shelters are a future phase and will not be a part of the current proposal. Commissioner Cartin asked if there are conflicts with bikes or specific design standards that apply to the proposed frontage road parking. 10 - 4 - 9 6/5/2012 Page 10 Greg Hall, Public Works Director, clarified that CDOT has design standard prescribed in the Town’s lease agreement for the right-of-way. Commissioner Pratt brought up the helipad relocation and its impacts to the development plan. He stated a concern with the straightening and consistent width of Betty Ford Way. He encouraged the group to into using “living” retaining walls on the south side of Betty Ford Way. He likes the tiered wall design at the west side of the athletic fields, but is concerned about a possible concert stage on the west end of the field adjacent to residential uses. He does not support the storage building at the entrance to the park. He noted concern about maintaining a vegetated roof and recommended the building be buried instead. He recommended the acoustics of the amphitheater be examined with the proposed re-grading the amphitheater lawn seating. Commissioner Pierce again stated the need to consolidate the number of buildings being proposed and his concern that the buildings do not all have a consistent architecture that contributes to the aesthetics of the park. He noted concerns that the social plaza had a rigid and formal design that does not fit the context of the amphitheater. He is concerned that East Betty Ford Way is creating conflicts between delivery truck and pedestrians and should have pockets for pedestrian refuge. Todd Oppenheimer reiterated the current conflicts between delivery trucks and the playground, open field area, gardens, etc. Commissioner Pierce spoke to the retaining walls proposed within the lawn seating area and concerns regarding steepness, circulation, and available views. Pedro Campos identified the conflicting goals and public comments concerning the lawn seating. He clarified that in the field design will be necessary for a positive outcome. Commissioner Bird asked for greater detail on the proposed location of a stage on the west end of the athletic fields. Todd Oppenheimer stated that the intent was to provide a location for a summer concert venue for a large event. He noted that the slab was needed for the entrance to the storage building regardless of a potential stage location, so there will be no visual changes if a stage is not considered. Commissioner Bird asked about access to the concessions building from the tennis courts and seating areas for watching tennis tournaments. Todd Oppenheimer identified the existing sidewalks and seating areas to remain. Commissioner Bird asked if the donated presidential pavers would be reused. Pedro Campos indicated that those pavers would be reused. Commissioner Rediker recommended maintaining the existing concrete retaining walls at the base of the lawn seating. He is concerned that less formal wall will not adequately control the flow of people during informal concerts like hot summer nights. He asked about buffering between the parking area and the steep slope down to the creek and storm water run-off. Tom Braun explained the proposed storm water run off filtration plans. 10 - 4 - 10 6/5/2012 Page 11 Commissioner Kurz expressed his concerns about the viability of the proposed vegetative building roofs. He is also concerned about how the Vail Valley Foundation and Bravo utilize the parking for donors and their plans for making the east amphitheater gate for exit only. He believes some of the parking at Ford Park should be reclaimed by the public and the majority of the spaces not be reserved exclusively for donors. There was no public comment. 15 minutes 7. A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning of the Vail Golf Course Clubhouse from the Outdoor Recreation District to the General Use District, located at 1778 Sunburst Drive/Part of an unplatted parcel (a complete metes and bounds description is available at the Community Development Department Office), and setting forth details in regard thereto. (PEC120019) Applicant: Town of Vail Planner: Bill Gibson ACTION: Recommendation of approval MOTION: Kurz SECOND: Bird VOTE: 4-3-0 (Pratt, Cartin, Rediker opposed) Items 7 and 8 were reviewed concurrently. Bill Gibson gave a presentation per the staff memorandum. He presented the materials and items for both the plat and zone district boundary amendment. He also recommended that members of the public attend the upcoming Vail Recreation District public hearings to express any concern they may have about the clubhouse remodel project. Tom Braun, representing the applicant, stated the purpose and goals of the proposal. Curtis Olson, adjacent property owner, spoke to his concern about the rezoning and the potential negative impacts of the proposed future development plan. He believes it would be appropriate to request a development plan in conjunction with the request for a rezoning. He is concerned about his property values if the club house remodel includes relocating the 18th green and the construction of a parking lot or event venue behind his lot. Deborah Webster, adjacent property owner, spoke to her concerns regarding the expansion of the parking area to be located to the rear of the residential homes. If there were to be a parking lot, an adequate vegetative buffer is necessary. She is concerned about the impact to her home values. She would like clarity regarding the extension of the driving range nets and the use of special events tents. Commissioner Kurz noted that any tents would require a special event permit. Greg Hall spoke to the driving range net issue and special event tents and lawn area. Deborah Webster added that a special event at the club house would be more impactful than those at Donovan Pavilion. Jim Lamont, representing the Vail Homeowners Association, stated that there should be a development plan included in conjunction with the plat and rezoning request. He does not believe it is appropriate to change the Town’s long standing practice of master planning the site prior to rezoning. 10 - 4 - 11 6/5/2012 Page 12 Commissioner Kurz spoke to his concern about rezoning without a development plan. He noted the that he Commission does not weigh property values in its decision making. He identified the economic development goals associated with the golf course remodel project approved by the voters. Commissioner Rediker asked if the 18th green was going to be relocated and if anyone present could speak to this point. Greg Hall stated that the 18th green is scheduled to be relocated in August. No development plan has been prepared to be submitted, but the Commission will be hearing an application for an events lawn and expanded parking in the near future. Bill Gibson clarified that the proposed change in zoning from Outdoor Recreation District to General Use District does not result in any greater or lesser ability for the golf course to alter the club house or the course. Not rezoning will not prevent changes to the clubhouse or 18th green. Commissioner Bird stated the General Use District is the appropriate zoning for the clubhouse. Commissioner Pratt initially those the rezoning was a “no brainer”, but is concerned about the impacts to the neighbors. Tom Braun explained the pros and cons of rezoning or not rezoning. Commissioner Cartin suggested a tabling of the application to allow the VRD and the neighboring property owners to meet. Greg hall explained that the Town of Vail is technically the applicant. Commissioner Hopkins asked for clarification of the review process for a clubhouse remodel under both zoning scenarios. Bill Gibson and Tom Braun explained. Commissioner Cartin asked the homeowners understood the additional review and opportunities for comment under the General Use zoning scenario. Curtis Olson spoke to his challenges to be involved in living part time in Denver and the short timelines for coordinating the neighborhood. Commissioner Pierce stated that the General Use District allows for the greatest public process and greater opportunities for protection of the neighbors’ interests. He noted that creating a single development site for the club house and parking lot with one zoning designation was a logical goal. Commissioner Pratt inquired if anything different would be proposed if the item were tabled for two weeks? Greg Hall answered there would be no changes to the zoning or plat requests. He explained that the clubhouse remodel plans are only conceptual at this time and do not yet include revision based upon input from the neighbors. 15 minutes 8. A request for the review of a final plat, pursuant to Chapter 13-4, Minor Subdivision, Vail Town Code, to allow for the Vail Golf Course parking lot and the Vail Golf Course clubhouse to be 10 - 4 - 12 6/5/2012 Page 13 combined into a single lot, located at 1778 Sunburst Drive/Lot 3, Sunburst Filing 3, and part of an unplatted parcel (a complete metes and bounds description is available at the Community Development Department Office), and setting forth details in regard thereto. (PEC120023) Applicant: Town of Vail Planner: Bill Gibson ACTION: Approved with a condition MOTION: Kurz SECOND: Bird VOTE: 6-1-0 (Rediker opposed) CONDITIONS: 1. Approval of this final plat is continent upon the rezoning of the subject property from the Outdoor Recreation District to the General Use District. 9. A request for a recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for prescribed regulations amendments to Title 12, Zoning Regulations, and Title 14, Development Standards, Vail Town Code, to require restoration of watercourses and riparian areas, and setting forth details in regard thereto. (PEC120011) Applicant: Town of Vail Planner: Rachel Dimond ACTION: Tabled to May 21, 2012 MOTION: Kurz SECOND: Cartin VOTE: 7-0-0 10. A request for a recommendation to the Vail Town Council on prescribed regulation amendments to Section 12-13-5, Employee Housing Unit Deed Restriction Exchange Program, Vail Town Code, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for amendments to the employee housing unit deed restriction exchange program review process, and setting forth details in regard thereto. (PEC120017) Applicant: Town of Vail Planner: Bill Gibson ACTION: Tabled to June 11, 2012 MOTION: Cartin SECOND: Pratt VOTE: 7-0-0 11. A request for a recommendation to the Vail Town Council on prescribed regulation amendments to Section 12-8B-3, Conditional Uses, Vail Town Code, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow a golf course as a conditional use in the Outdoor Recreation District, and setting forth details in regard thereto. (PEC120021) Applicant: Town of Vail Planner: Bill Gibson ACTION: Withdrawn 12. Approval of April 23, 2012 minutes MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 13. Information Update 14. Adjournment MOTION: Cartin SECOND: Rediker VOTE: 7-0-0 The applications and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road West. The public is invited to attend the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call (970) 479-2138 for additional information. Sign language interpretation is available upon request with 24-hour notification. Please call (970) 479-2356, Telephone for the Hearing Impaired, for information. 10 - 4 - 13 6/5/2012 Page 14 Community Development Department Published May 11, 2012, in the Vail Daily. 10 - 4 - 14 6/5/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 5, 2012 ITEM/TOPIC: Adjournment (9:30 p.m.) 6/5/2012