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HomeMy WebLinkAbout2012-10-16 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., OCTOBER 16, 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: Proclamation No. 5, Series of 2012, Honoring the service of the Volunteers in Police Service and declaring the Third Week of October as “Volunteers in Public Service (VIPS) Week.” (5 min. ) PRESENTER(S): Dwight Henninger, Police Chief ACTION REQUESTED OF COUNCIL: Read into the record and proclaim the Third Week of October as “Volunteers in Public Service (VIPS) Week.” STAFF RECOMMENDATION: See attached proclamation. 2. ITEM/TOPIC: Proclamation No. 6, 2012, Friends of the Libraries Week. Read into the record and proclaim October 21-27, 2012 as “Friends of Libraries Week in Vail". (5 min.) PRESENTER(S): Lori Barnes STAFF RECOMMENDATION: Approve Proclamation No. 6, 2012, Friends of Libraries. 3. ITEM/TOPIC: Citizen Participation (15 min.) PRESENTER(S): Public 4. ITEM/TOPIC: Consent Agenda: 1) Approval of September 4 and 18 meeting minutes; 2) Resolution No. 28, Series of 2012 - Holy Cross Easement for Vail Golf Course - Todd Oppenhiemer; 3) Resolution No. 29, Series of 2012 - Summit County MOU for the Provision of Emergency Dispatch Service Staffing - Dwight Henninger; 4) Resolution No. 30, Series of 2012 - TOV approval of 2013 VLMD Budget - Kathleen; 5) MJG Trust License Agreement - Rachel Dimond. (20 min.) PRESENTER(S): Various 5. ITEM/TOPIC: Town Manager Report: 1) Timing on Renovation for Ford Park softball fields - Summer 2014; 2) Bicycle Dismount Zone in Vail Village; 3) Winter Parking Program and Rates for 2012-2013 season; and 4) Council preference for Commission on Special Events (CSE) vacancy 10/16/2012 process for a two month vacancy: 1) forgo the normal process of posting and publishing, as has been suggested by the CSE, and make an appointment from the most recent applications for previous vacancies from applicants that submitted letters of interest from June 2011 to June 2012 that are still interested; or 2) leave the position vacant until the position comes up for renewal in December, 2012. Telephone calls have been made to all the applicants on the list. All have expressed interest except for Sarah Franke who has time constraint issues. Also staff hasn't heard back from the following applicants: Dave Chapin, Janyce Brandon, Jeff Andrews and Katherine Richardson. The list of interested parties from June 2011 to June 2012 is attached. If you would like to review their letters of interest, you may go to the dates on the attachment in past Council agendas. (10 min.) PRESENTER(S): Various 6. ITEM/TOPIC: A request to enter into a license agreement with David & Alexandra Ransburg for existing private improvements (patio & water feature) on town-owned streamtract (Unplatted), adjacent to 463 & 473 Beaver Dam Road/ Lots 4&5, Block 4, Vail Village Filing 3, and setting forth details in regard thereto. (15 min.) PRESENTER(S): Rachel Dimond ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with conditions, or deny the applicant’s request to enter into a license agreement with the Town of Vail for use and maintenance of town property for a patio and water feature. BACKGROUND: l A duplex was built on the subject property in 1988, with no encroachments onto Vail Resorts-owned adjacent property shown on plans. l In 1990, the applicant was granted permission to subdivide the property into three parcels, including one parcel for each side of the duplex and a common parcel. l In 1990, Vail Resorts and the applicant submitted a number of documents to the Town of Vail stating an encroachment agreement would be executed, or said encroachments would be removed. The encroachment agreement was never executed, but the encroachments remain. l In 1999, Vail Resorts deeded the subject streamtract to the Town of Vail. l On July 19, 2011, the Vail Town Council unanimously approved a zero tolerance policy for encroachments into town-owned streamtract in order to improve the health of Gore Creek. STAFF RECOMMENDATION: Because the Town of Vail approved the encroachments in 1993, the Community Development Department recommends the Vail Town Council approves, with conditions, the applicant’s request. Should the Vail Town Council choose to approve the applicant’s requests, Staff recommends the Council include the following condition: “The license 10/16/2012 agreement shall include a clause that allows the license to be revoked by the Town of Vail at any time for any reason. 7. ITEM/TOPIC: Colorado Department of Transportaion(CDOT) Project Update regarding Chain Stations along Interstate 70 in Vail Colorado (25 min) PRESENTER(S): Michelle Hansen from Stouflous; Martha Miller and David Oldham from CDOT; and Greg Hall and Dwight Henniger with the Town of Vail ACTION REQUESTED OF COUNCIL: Provide feedback and allow public input with regard to the information presented BACKGROUND: CDOT has taken on a study to identify improvements to increase the capacity of safety of the chain up and down stations in Vail along I-70. See attached memo for addtional information regarding the project. STAFF RECOMMENDATION: Provide feedback and allow public input with regard to the information presented 8. ITEM/TOPIC: Second Reading of Ordinance No. 12, Series of 2012, an ordinance adopting the 2012 Building Codes with amendments. (30 min) PRESENTER(S): Martin Haeberle, Mike Vaughan ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No.12, Series of 2012 upon second reading. BACKGROUND: The Building and Fire Appeals Board has held public hearings monthly over the last nine months reviewing the changes from the adopted building codes and amendments to the 2012 Building Codes for the purpose of recommending the adoption of the 2012 Building Codes by the Vail Town Council. The Board has eliminated many of the amendments in the towns current building codes that are now within the body of the building codes or out of date with current technology. The Board has also added provisions that address construction practices that are unique to our community. Public input has been a key factor in these changes. Ordinance No. 12, Series of 2012 was approved as presented by the Vail Town Council on first reading on October 2, 2012 with a 5-1-0 vote. STAFF RECOMMENDATION: The Community Development Department and Fire Department recommends the Vail Town Council approve Ordinance No. 12, Series of 2012 upon second reading. 9. ITEM/TOPIC: First reading of Ordinance No. 13, Series of 2012, an ordinance amending the construction sign provisions and repealing the temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, and setting forth details in regard thereto. (PEC120031) (30 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. 13, Series of 10/16/2012 2012, on first reading. BACKGROUND: On September 24, 2012, the Planning and Environmental Commission forwarded the Vail Town Council a recommendation of approval, with modifications, for prescribed regulation amendments to Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11-3-3, Prescribed Regulations Amendment, Vail Town Code, to allow for amendments to the construction sign regulations, and setting forth details in regard thereto. (PEC120031) STAFF RECOMMENDATION: The Planning and Environmental Commission recommends approval of Ordinance No. 13, Series of 2012, on first reading. 10. ITEM/TOPIC: Ordinance No. 15, Series of 2012, An Ordinance Amending Title 7, Vail Town Code by the Addition of Chapter 10 Regarding Commercial Transportation Regulations; and Setting Forth Details in Regard Thereto. (15 min.) PRESENTER(S): Dwight Henninger ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No.15, Series of 2012, on first reading. BACKGROUND: At the July 17, 2012 Council meeting direction was given on managing the transportation organizations in town. Staff is presenting this ordinance and management plan to put in action Council's direction. STAFF RECOMMENDATION: Approve, approve with modifications, or deny Ordinance No. 15, Series of 2012, on first reading. 11. ITEM/TOPIC: Resolution No. 31, Series of 2012, a resolution repealing and reenacting the Town of Vail Employee Housing Strategic Plan. (30 Minutes) PRESENTER(S): Nina Timm, Community Development Department ACTION REQUESTED OF COUNCIL: The Community Development Department requests the Vail Town Council listen to the Staff presentation, ask questions and provide feedback. The Community Development Department also requests the Vail Town Council grant a continuance of Resolution No. 31, Series of 2012, to its November 6, 2012, public hearing for further deliberation. BACKGROUND: The Town of Vail adopted its Employe Housing Strategic Plan on September 2, 2008. Since that time market conditions have changed, additional information is available and there has been completion of action items from the current plan. Proposed amendments to the Employee Housing Strategic Plan make it a more current and relevant guide for decision making. STAFF RECOMMENDATION: The Community Development Department recommends the Vail Town Council grant a continuance of Resolution No. 31, Series of 2012, to its November 6, 2012, public hearing for further deliberation. 12. ITEM/TOPIC: Adjournment (9:20 p.m.) 10/16/2012 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Proclamation No. 5, Series of 2012, Honoring the service of the Volunteers in Police Service and declaring the Third Week of October as “Volunteers in Public Service (VIPS) Week.” PRESENTER(S): Dwight Henninger, Police Chief ACTION REQUESTED OF COUNCIL: Read into the record and proclaim the Third Week of October as “Volunteers in Public Service (VIPS) Week.” STAFF RECOMMENDATION: See attached proclamation. ATTACHMENTS: Proclamation No. 5, 2012 VIPS PD Volunteers 10/16/2012 TOWN OFVAIL PROCLAMATION NO.5, SERIES OF 2012 A PROCLAMATION DECLARING THE THIRD WEEK OF OCTOBER AS "VOLUNTEERS IN POLICE SERVICE (VIPS) WEEK" WHEREAS, the entire community can effect a positive change with any action, no matter how big or small; and WHEREAS, Volunteers can connect with the local community through service organizations, such as Volunteers in Police Service; and WHEREAS, Volunteers in Police Service donate their time to make a real difference in the lives of residents and guests of the Town of Vail; and WHEREAS, since October 2011 Vail VIPS have donated 1,138 valuable hours equivalent to $20,541.00 performing non-enforcement duties; and WHEREAS, the members of the Volunteers in Police Service give unselfishly by serving the Town of Vail. NOW, THEREFORE, BE IT PROCLAIMED that the Vail Town Council declares the third week of October 2012, as Volunteers in Police Service Week. Accordingly the Town of Vail encourages citizens and guests alike to join the Town of Vail VIPS program to foster and enhance partnership between the community and Vail Police Department. SIGNED this 16th day of October, 2012. Andrew P. Daly, Mayor ATIEST; Lorelei Donaldson, Town Clerk 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Proclamation No. 6, 2012, Friends of the Libraries Week. Read into the record and proclaim October 21-27, 2012 as “Friends of Libraries Week in Vail". PRESENTER(S): Lori Barnes STAFF RECOMMENDATION: Approve Proclamation No. 6, 2012, Friends of Libraries. ATTACHMENTS: Proclamation No. 6, 2012 Friends of Library 10/16/2012 TOWNOFYAIL PROCLAMATION NO.6, SERIES OF 2012 A PROCLAMATION DECLARING OCTOBER 21 -27, 2012 AS "NA TIONAL FRIENDS OF LIBRARIES WEEK" Whereas, Friends of the Vail Public Library raise money that enables the Town of Vail Library to move from good to great, providing the resources for additional programming much needed equipment, support for children's summer reading and special events throughout the year; and Whereas, the work of the Friends highlights on an on-going basis the fact that our library is the cornerstone of the community providing opportunities for all to engage in the joy of . life.:long learning and connect with the thoughts and ideas of others from ages past to the present; and Whereas, the Friends understand the critical importance of well funded libraries and advocate to ensure that our library gets the resources it needs to provide a wide variety of services to an ages including access to print and electronic materials, along with expert assistance in research, readers' advisory and children's services; and Whereas, the Friends' gift of their time and commitment to the library sets an example for all in how volunteerism leads to positive civic engagement and the betterment of our cQmmumty: and Now, therefore, be it resolved that 1, Andrew P. Daly, Mayor, proclaim October 21-27, 20J 2, as friends of Libraries week in Vail, Colorado and urge everyone to join the Friends of the Library and thank them for all they do to make our library and community so much better. SIGNED this 16th day of October, 2012 Andrew P. Daly, Mayor 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Citizen Participation PRESENTER(S): Public 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Consent Agenda: 1) Approval of September 4 and 18 meeting minutes; 2) Resolution No. 28, Series of 2012 - Holy Cross Easement for Vail Golf Course - Todd Oppenhiemer; 3) Resolution No. 29, Series of 2012 - Summit County MOU for the Provision of Emergency Dispatch Service Staffing - Dwight Henninger; 4) Resolution No. 30, Series of 2012 - TOV approval of 2013 VLMD Budget - Kathleen; 5) MJG Trust License Agreement - Rachel Dimond. PRESENTER(S): Various ATTACHMENTS: September 4, 2012 meeting minutes September 18 meeting minutes Resolution No. 28, Series of 2012 Resolution No. 29, Series of 2012 Resolution No. 30, Series of 2012 MJG Trust License Agreement 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 1 Vail Town Council Meeting Minutes Tuesday, September 4, 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 Lorelei Donaldson, Town Clerk _________________________________________________________________ The first item on the agenda was Citizen Participation. Kaye Ferry introduced Kevin Lundberg as the Republican candidate for the Colorado State Senate Seat for the Second Congressional District. Lundberg stated the district has been redrawn and includes several mountain communities including Vail and most of the Northern and Central communities in the front range of Colorado. He stated he will bring the same solid principles he has championed for the past ten years as a state legislator. He said he would continue to work toward lower tax burdens, more reasonable regulations, local control of education, getting people back to work, repealing the federally mandated medical plan and getting rid of more federal policies. He said he was a small business owner and he understood the hardships of over regulation and government intrusion. He wants to preserve individual liberties. He said people can access more information at his website at www.Lundberg2012.com. Ann Fattor introduced herself and said she is running for a seat on the State Board of Education for District Two. She said she has a long history of service to her community and good leadership. She has eight years of service on the Gilpin County Board of Education, four years on the Colorado Association of School Boards and was president of that board in 2002. She has also been chair of the Gilpin County Republicans since 2008. She stated more information can be found at her website at www.fattor4stateboardofeducation.com. The second item on the agenda was the Consent Agenda. On the consent agenda were the approvals of a correction plat for Moraine Drive; approval of the August 7, 2012, meeting minutes; and the August 21, 2012, meeting minutes. Moffet made a motion to approve the consent agenda with minor changes to the meeting minutes and the motion was seconded by Donovan. A vote was taken and the motion passed, unanimously, 7-0. 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 2 The third item on the agenda was the town manager report. Under this item was an update on the water and drought conditions from the Eagle River Water and Sanitation District (ERWSD). Diane Johnson, ERWSD representative, stated the main update was in switching processes from how much water is available to meeting the demand to customers. She discussed the main stream flow and senior rights of the creek and how they revise their operations to adapt to the cfs flows and demands to customers. She said they are asking customers to lessen the impact on Gore Creek by letting their lawns go dormant now and reduce their usage of water as much as possible. She encouraged people to button up their sprinkler systems early and not wait until the first frost. The current outlook is that the drought will persist through November. Rick Sackbauer, board member of the ERWSD, stated the district has signed an agreement with Vail Resorts, Inc. (VRI) to move water through the VRI snow making system and put it into Gore Creek. They saw significant changes through this process. VRI is concerned about the water flow levels for snowmaking equipment. This should be a win-win for everyone. Kurz asked him to explain where water is pumped normally. Sackbauer said in the summertime, most of the water is from the Vail end of the valley and interconnects down to Eagle-Vail, Avon and the Edwards area for landscape irrigation. This year, water was moved from the Edwards, Avon and Eagle-Vail area up to the Vail area. He said VRI can take water from Gore Creek and the Eagle River into their snowmaking system. Water is usually not ever released into Gore Creek. He also stated that the Black Lakes at the top of Vail Pass are full at this time. The fourth item on the agenda was first reading of Ordinance No. 10, Series of 2012, an ordinance amending Chapter 12-22, View Corridors, and Section 14-10-3C, Site Planning, Vail Town Code, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for the maintenance of adopted view corridors impacted by vegetation, and setting forth details in regard thereto. Warren Campbell, Chief Planner, said this is first reading of Ordinance No. 10. On July 17, 2012, the Council heard a presentation on the current view corridor regulations and concerns raised by the Planning and Environmental Commission (PEC). After the presentation the Council directed staff to propose amendments addressing the maintenance of vegetation impacting adopted view corridors. On August 13, 2012, the PEC forwarded a recommendation of denial (5-0-0) on proposed amendments to Chapter 12- 22, View Corridors, and Section 14- 10-3C, Site Planning, Vail Town Code, to allow for the maintenance of adopted view corridors impacted by vegetation. He said the DRB was concerned about negative impacts. Rogers asked for a more detailed account about the PEC conclusions that were the basis of their denial and how it would have a negative impact. Tjossem asked if the PEC understood the question they were specifically trying to address was about four view corridors. Campbell said he believes they understood the broader policies and that View Corridor #1 was included in their discussions. The PEC comments were focused on stream health and were concerned the mitigation to the vegetation could go to one extreme. He said the DRB has consistently used Section 14-10-3(C) to prevent removal of vegetation for the sole purpose of obtaining a view to a landmark (commonly the Gore Range or the ski mountain). This section of the code reads, “C. Removal of trees, shrubs, and other native vegetation shall be limited to removal of those essential for development of the site, those identified as diseased or those essential for creating 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 3 defensible space. Mitigation may be required for tree removal.” The DRB was concerned about allowing the town to perform an action which is consistently denied for private property owners. Jim Lamont, representing the Vail Homeowners Association, stated he didn’t participate in this topic when it was previously discussed. He thinks this is a political issue. The marketing value of having a view of the Clock Tower would be a photo opportunity from the Vail Transportation Center belvedere. He said it was evident that people turn to the iconic view of Vail and it is no longer there due to the trees. Campbell said there are three aspens impacted in View Corridor #1. He also stated all view corridor points are on public property but they do cross over private property. Most of the trees are on private property in the view corridor and do not impede the view as they would have to double or triple in size to do so. Lamont asked more questions regarding various aspects of the ordinance and view corridor issues. Lamont urged Council to re-expose the Clock Tower in View Corridor #1 at the minimum. Rogers asked if the trees could be trimmed or get a variance. Campbell said this type of application isn’t what you would get a variance on. Campbell said language has to be passed to let the Design Review Board have the chance to evaluate based on a case by case basis to address issues as they appear. He said on the PEC level, most of the requests would come from the town. Rogers said she understands the concerns of the PEC, but in View Corridor #1, four trees are not going to impact the water temperature of the creek. She asked if the Council could consider an ordinance that effected View Corridor #1 only. Mire said that would be harder to enforce. Mire said Vail is a homerule municipality and they could consider whatever they want. Further discussion ensued. Campbell reviewed the memorandum and ordinance language in more detail to explain how the process would work if the ordinance passed. He discussed the roles of the PEC and DRB in the process. Rogers said there is an issue with View Corridor #1 and she wants to get this taken care of without unintended consequences. Campbell said he understands and believes this ordinance allows the town to reevaluate issues on every view corridor, not just View Corridor #1. Tjossem said she was voting in favor of adopting the ordinance to have flexibility to trim vegetation as it may be necessary. Rogers agreed. Tjossem made a motion to approve Ordinance No. 10, on first reading and the motion was seconded by Rogers. Donovan said she will support approval of first reading. She said she will get more information from someone who sat on the Council in the 1990’s to get his/her intent of the ordinance when it was passed at that time. A vote was taken and the motion passed unanimously, 7-0. Moffet said he wanted language added so people couldn’t “top” trees. Campbell said he would add to the proposed ordinance on second reading. 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 4 The fifth item on the agenda was Resolution No. 25, Series of 2012, A resolution calling a Special Election for November 6, 2012, to be Coordinated with Eagle County, and submitting ballot questions to the registered electors of the town at the November 6, 2012, Coordinated/ Special Election. Matt Mire, Town Attorney, stated the Council has determined that several changes to the Vail Town Charter are warranted. All amendments to the Vail Town Charter must be approved by the registered electors of the town at a regular or special election. He stated the Council has heard the individual items and agreed to most of them at the previous Council meeting. He said there were still two outstanding questions that needed resolution. On ballot question number two regarding changing the language of the date for November elections, Moffet had a question regarding Tabor. He said with federal elections, the state has to coincide the federal elections in even number years to coordinate with state elections. The town wants to have the discretion to have even number years to coordinate a special election with the county and state elections. The second item Mire reiterated from the previous meeting, the Council wanted to preserve the initiative and referendum percentages and adopt state language for the rest of the initiative and referendum section of the charter. He also said that with the ballot question regarding the capital program, there is a reference in the charter now but it does not state it should be a 50/50 split. The ballot language would allow for the capital program to be in the Charter but the split be set by ordinance. A sample ordinance was attached to the Council agenda packet for Council review. He read the changes in the ordinance. Rogers made a motion to approve Resolution No. 25 and the motion was seconded by Moffet and Kurz. Jim Lamont, representing the Vail Homeowners Association, asked Mire about the 50/50 split being taken out of the Charter. Mire said the Charter doesn’t reference the percentages, but this change will allow the percentages to be set by ordinance. The draft ordinance doesn’t put in a specific split currently. The Council can already change the percentage by ordinance. Mire reiterated there is no charter or ordinance requirement for a 50/50 split. Lamont reiterated that the reality is there is no longer a 50/50 split and there can be an ordinance passed setting percentages now. The super majority vote of the Council can change that at its discretion at any time. He said when the Charter originally addressed this issue, it was to have a balance between operations and capital. The Council has two debates, one, keeping it 50/50 and the rational with changing percentages; and two, how the budget should be balanced. Rogers said the budget process has to be approved every year no matter whether it is by ordinance or by Charter. The Council is suggesting to take it out of the Charter and putting in language by ordinance. Lamont said when it comes to budgeting the Council will change every two years. Rogers said this language cleans up the Charter. Lamont would like the percentages in the Charter where the people vote on the changes in the split. 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 5 Moffet said he understands Lamont’s concerns, but the bigger pticure is that the Charter doesn’t state there needs to be a 50/50 split. Everyone thought it was in the Charter but it doesn’t exist. The Council is putting more teeth in the system that the Council will have to adhere to. Daly said his opinion is different. He said the town has been responsible in the past under the assumption that the Council was required to allocate a 50 percent split to capital and 50 percent split to operating over the years. This has resulted in behavior that has been advantageous on how the town has been run. The idea of putting it in an ordinance and requiring a super majority for changing it is not a guarantee that the stewardship and fiscal responsibility will continue and be adhered to in the future. He is a proponent of having additional language of a 50/50 or 60/40 or some allocation split be added in the Charter and not by ordinance. Moffet said if a future Council decided to abandon the percentages, there is still a way for the populace to weigh in on the decision as it could be subject to the referendum process. A vote was taken and the motion passed 6-1, with Daly opposed. The sixth item on the agenda was an update on the Vail Golf and Nordic Clubhouse project. Greg Hall, Public Works Director, stated that staff presented a comprehensive project issues report at the August 21, 2012, Council meeting. This report was prepared based on letters and comments received to date from the community regarding the clubhouse project. Public comment was taken on the list of issues and based on this input the list was refined to include better clarification with regard to concerns about lighting and the overall economic need for the facility. At the conclusion of the August 21st meeting, it was decided that staff would present responses to these issues at the September 4th and 18th Council meetings. There were thirteen issues regarding the project that were discussed on August 21st. Topics that were discussed at the work session on September 4th included: 1) the re-zoning process, General Use(GU) zone district, etc.; 2) tents; 3) future use of 18th green area once the realignment is complete; 4) the parking lot access; and 5) the driving range netting. He asked the Council to provide feedback to the staff regarding the items presented. This will allow the project team to better respond to the issues which have been gathered and to prepare responses to these issues to be included in a formal application for the project. Staff needed to get Council and public input again. Tom Braun, with Braun and Associates, Inc., said they will have more information in the next few weeks. The project team wants to go into the five topics as they know more about them. He reviewed the process and rezoning item first. In regard to the re-zoning/GU District, the project team’s original objectives were: resolve the existing condition of the club house area being zoned both General Use (GU) and Outdoor Recreation (OR) and establish development standards for a development review process that will allow for a building height up to 33’ (sloping roofs). The concerns were that any rezoning would need to include a development plan. They are committed to having a development plan included when an application is submitted. The GU would have a broader use than outdoor recreation zoning. This is an awkward situation that should be remedied. The whole project should have just one zone district as it creates more challenges. 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 6 Rogers asked if the outdoor recreation zoning requires a specific number of parking spaces as she doesn’t want to do something that would require a large parking lot if we make it Outdoor Recreation District versus General Use District. Braun stated that the number of parking spaces required would not be increased with either zoning designation. The one issue in the outdoor recreation district is the 24-foot building height limit. The proposed building has a height of 33 feet. There could be an amendment to the Outdoor Recreation District to change the height from 24 feet to 33 feet, but that may create further complications with other Outdoor Recreation District properties. Further discussion ensued on the merits of General Use versus Outdoor Recreation. Braun reviewed the second topic which was the use of tents. In the powerpoint presentation, they listed that no tents would be allowed for private functions. However, a bonafide community event could have a tent. Rogers asked if the VRD did a financial analysis to make it a profitable enterprise and that was why the tent concept came into play. Ortiz said that is not true. They need outdoor space but they don’t necessarily need a tent. Daly said there was a space on the plans so Zehren put “tent” on it and that’s where this came from. Braun said it also came from the fact that tents have been used in the past. Tjossem asked about the terminology of what constitutes a “bonafide community event.” She said that needs to be defined as it opens this up to lots of various interpretations over the years. Braun said they don’t want to preclude a larger event that may need a tent. Tjossem said to use a stronger word to define it. Braun said this will be addressed in the conditional use application. Daly asked to add the location for the tent to the drawings as well. Braun said the third topic was the use of the 18th green space. If they are committing to this use, define it and program it in the conditional use application. They are still working on the possible uses. Other possible uses that may be compatible with the neighborhood is a putting green, a putting course, badminton, croquet, bocce ball or something else. Moffet said they need to be sensitive to the fact that this space will be right next to a green. Rogers said this is why they need the expertise from the VRD as they know what is compatible and are the experts, not Council. Braun then talked about the parking lot access. He said currently there is 185 to 190 feet of site distance. In the new process, it reduces this to about 130 feet of site distance. Hall studied industry standards and there is a lot of conflicting information. The Ashto Traffic Code Manual, which is the leading expert in this field, suggests there the standard site distance is 170 feet; thus, they made the decision to keep it where it is to be in compliance with the standards. Braun said the last topic was about the netting and Mike Ortiz will be addressing the topic. Mike Ortiz, Vail Recreation District Director, said the VRD board and staff have come to the conclusion, throughout the process, they are not going to pursue putting up the driving range net this fall. They need to put the net up when the ground is dry and spring is not a good time as it is too wet. They plan on installing the netting next fall. They will try to manage the range in 2013 as best they can. They will keep studying where the balls are landing and see if they can do mitigation of balls going over the net. They plan to do this through signage, verbal communication and more staff on the range. A large part of the problem of balls going over the net is due to people doing it on purpose. If they have staff policing this area it will cut down on 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 7 the problem. This is a working plan for the summer of 2013 and is not the permanent solution. It will be studied and they will come back to Council and give them the data of how it worked and what they propose. He went through the power point presentation and discussed that the range will be narrowed even more because the baffles will come out into the range and will impact the guest experience. The current range is already narrow. While this could be a solution, it’s not optimal. It will impact the guest experience, quality, revenues and operations. This whole project will be a significant impact financially to the revenues and operations of the VRD to be shut down for a year. He discussed in more detail aspects of the poles, netting and site plan. He said there has been a lot of talk with consultants on how to make this work best. A lot of talk has been on why a net needs to be there now. He said all over the golf course they have adjoining fairways and people get hit all the time but they don’t always report it. He has seen it happen. When you are on the fairway you are a moving target. When you place it on a green, you are a standing target and the likelihood of getting hit is that much more. Tjossem said she was confused about having to move the 18th green. She thought it was because of the ball flight concerns and that netting was going to solve it. Now it seems to put off the net test for a year while all the other things are in motion makes her wonder how legitimate the nets were in the first place. She wants to understand the process. The sequence of the process is out of place to her. Ortiz stated there are two ball flights to consider. The first is coming from the driving range hitting into the 18th hole where people are a standing target. And the second is that the fairway is being moved because it is currently too close to the current patio and clubhouse and balls are hitting people there. Further discussion ensued. Tjossem said she would like to see that all aspects of the Vail Golf Course Clubhouse design and 18th green being moved discussed at one meeting, including the green, the grill, the patio and clubhouse design. She doesn’t want two separate discussions as it complicates the issue. Hall stated there are other issues that need to be considered as well: project costs, netting, design, concerns about the soils and wind load. Daly said at the next meeting they should plan on coming back to discuss the netting to see it in terms of design for play on the modified 18th green. Also, impacts to the front of the clubhouse, deck and the driving range as it impacts the 18th green and the new cart dropoff and the grill on the north side of new clubhouse. Ortiz said the operation plan is a working document and the VRD board will be reviewing it at their next Thursday meeting on October 6th. This is a working document. It will not be a final document that is presented to the Council on September 18th. Zemler said they shouldn’t commit to the September 18th meeting for hearing about the operating plan as they won’t have all the information necessary until the first meeting in October. Daly said this will be a three meeting process. Zemler said at least three meetings. Daly said the public should limit their comments to two minutes. He asked to have a civil and respectful process and to take side conversations out of the meeting room. He asked everyone 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 8 to stay focused on issues presented tonight to get solid feedback relative to the information provided. Raul Hamlin, a property owner, said we are painting ourselves into corner with a hodgepodge of expensive bandaids. He said it comes down to the 200 person community room. He said the 200 person room space should be lowered as there may be no desire to have this space as there are other new venues on Vail mountain that may suffice. He said Council needs to reconsider the size of the community space, the size of the patio and moving the new green. Cutting the space down will save a lot of money for netting and other expenses. Art Abplanalp, attorney for Glenn Hilliard who is an adjacent property owner, said Mr. Hilliard forwarded an email covering issues that have been identified with this project. All comments were contained in the letter from him and his neighbors. He wants the email sent to Council added to the packet for the record. He said the project is unacceptable at this time. The difference between him and the rest of the neighborhood is Hilliard is the only one who wants to continue discussions. Others don’t. He addressed the removal of the re-zoning as a good thing. Tents should not be allowed. The alternative use of the 18th hole should generate no additional traffic. With reference to the change in the access point of parking, leaving it where it is was a good decision. He said the safety issues are more imaginative than credible. The height issue in the present plan would locate any significant improved area outdoors to the north of the clubhouse. Zemler said they have had many requests to flip the spaces. He asked Abplanalp if the neighbors are saying they want to flip all activity to the north side of the building. Alplanalp said the plan they are suggesting would assume the building would remain in its current area and the kitchen would be in the same place. The difference is that the expanded space on the north side would be for the patio and grill. Sam Maslak, a Sunburst Drive property owner, stated the majority of adjacent property owners said they didn’t know this discussion was being held until last Friday, so the next meeting will have better attendance from the neighbors. He said he just recently received the Hilliard letter and he and other neighbors didn’t have an opportunity to add to the list. He wants to expand the list of topics besides the 18th fairway to discuss at future meetings. He said the addition of an event center seems contrary to the purpose of the golf course and asked if the event center was in compliance with the Pulis covenants. He said that if a conditional use permit would allow for tents at public events but not for private events is a concern. He said this process could also be used to allow tents for private events as well. He said if additional revenues are needed to support an event center, this would be an issue and putting up a tent at all is a concern. Deborah Webster, a property owner on Sunburst Drive, said in general there is a sense from the neighbors that they don’t understand the dynamics of the town direction. She said they are in agreement that they need a world class club house. However, they view the event center as taking money out of having a world class golf club house. She said everyone should remain flexible and focus on what the voters wanted. She has looked at the Donovan Pavilion said they should compare the two venues. She wants Council to look at the residences in relation to the clubhouse. Peter Cook said he lives in East Vail and has played the golf course many times. He said when the residents voted on this, they only wanted a clubhouse that didn’t stink and was worth 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 9 having. As it has evolved, it is an event center. He said people have said not to call it an event center but he feels this is an event center. He said if the town and VRD make all the changes as proposed, it will be a lot of money. He said there is no way to make a ROI out of a 200 space event center. He doesn’t see how this project can fly financially. Jim Lamont, representing the Vail Homeowners Association, said special events have a voracious appetitie and he doesn’t think this will be an acceptable solution. He wants it clarified that all parties consider view corridor protection from residences and from the public street and down the 18th fairway. He said the views of the building should be reoriented because the neighbors may decide to do forms of guerrilla warfare to make it unpleasant to look at. Whatever uses are put on the vacated green need to be similar to the use as is currently. Rick Sackbauer said he lives in the VRD District, is a VRD board member, but these were his personal comments. He said this information has not been in front of the VRD yet. He said he personally has a different view of tents than many people. He said a tent can be a part of the building that fits the mass, height and color. He stated that operating this current building for the last four years and knowing that Vail has cool evenings, rain and other weather, the tents could expand the golf course functions and would work. He said the Eagle-Vail Golf Course and Red Sky Golf Course both accommodate tents that are used, not often, but well. He said in response to Mr. Hilliard’s comments to move functions to the north, the architect has done an excellent job of keeping events away from the golfers and golfers away from the events as I is not compatible to mix those two functions. Malia Norbrega,with Crossroads Realty, said they represent Phase II, III and IV of the Vail Golfcourse Townhome owners. She said some progress has been made so far and the owners will be happy to hear that the zoning has been removed from the discussions. The comparison with the Eagle-Vail Golf Course should not be compared with the Vail Golf Course as it is not anywhere reasonable for the type of multi-uses being considered with residences that exist nearby. The tent and event center are a big concern of the homeowners. She said if the economic impact is not very successful, this may push the VRD and town to seek to other ways that can change the use of the space in the future. The owners don’t want to see an events center there. Doing an economic study will be helpful and she appreciates the work done so far. Daly invited the public to come to the next two meetings in two weeks and four weeks to participate and work through this process. The seventh item on the agenda was the appointment of one person to the Vail Local Licensing Authority (VLLA) to fill a vacancy. Staff requested the Council interview the interested applicants at the work session earlier in the day and asked Council to appoint one new member at the evening meeting. The term of the appointment runs from August, 2012, to June, 2013. Daly stated there were two candidates, Luca Bruno and Chris Parks. Moffet thanked both applicants for applying and for their interest in the town board. The council voted by ballot and Luca Bruno was then nominated to the VLLA. Kurz made a motion to appoint Luca Bruno to the VLLA board and the motion was seconded by Moffet. A vote was taken and the motion passed, unanimously, 7-0. 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 10 The eighth item on the agenda was the Century Link Utility Easement, so it is a revocable easement removing it in the future if the town requires it, at the Ford Park Soccer Field. Tom Kassmel, Public Works Engineer, said Century Link replaced a failing utility line at the Northwoods Condominiums this past spring. They completed an underground bore in order to accommodate the new line along the east edge of the Northwoods driveway, and behind their existing entrance sign. Upon completion, it was determined that the new line was actually on town property. Century Link is requesting an easement from the town for this new utility line in order to keep it in its existing location. The existing utility line currently does not impact any town infrastructure or landscape and does not require any further disturbance to town property. This also is contingent upon removing it in the future if the town requires it. Moffet made a motion to approve the draft of the easement to allow Century Link to go through the Ford Park Soccer Field Lot, legally known as Vail Village Filing 7, Block 2, Tract & Lot A & B, in a form approved by the Town Attorney with the requirement that Century Link will remove the line and vacate the easement as necessary at any such time that the town requests its removal or relocation. The motion was seconded by Foley. Rogers questioned whether this should be an approval for a draft of an easement or an approval of the final easement. Further discussion ensued about draft versus final easement approval by Council. Moffet amended his motion to change the wording from draft to final easement and Foley seconded the motion. A vote was taken and the motion passed, unanimously, 7-0. The ninth item on the agenda was a discussion regarding the South Frontage Road improvements and guardrail installation project. Tom Kassmel, Public Works Engineer, said staff requested the Council allocate $396,000 from the Traffic Impact Fee Fund to the 2012 budget and authorize the Town Manager to enter into an agreement with Elam Construction Inc. to complete the South Frontage Road Improvements and to enter into a separate agreement with Ideal Fencing Corp. to complete the guardrail installation project. He said in 2011, the Town of Vail and Colorado Department of Transportation (CDOT) entered into an Intergovernmental Agreement (IGA) regarding the use of the Frontage Roads for overflow parking. The IGA outlined certain safety improvements that are required to be installed by the town at the overflow parking locations. The improvements to be completed in 2012 include shoulder widening of the South Frontage Road from approximately the Vail Resorts maintenance facility to the heli-pad, and guardrail installation along I-70 in two locations: westbound I-70 from Safeway to Arosa Drive and eastbound in the same location as the above described shoulder widening. Included in the improvements of the South Frontage Road is a CDOT-required westbound left turn lane at West Lionshead Circle. The existing left turn volumes during the peak hour at this location warrant the construction of a turn lane and the improvements have been identified by CDOT and the town’s Transportation Masterplan of 2009. Shoulder widening fees came from Tax Increment Financing (TIF) funds. Traffic impact fees paid by the surrounding new developments of Arrabelle in the amount of $305,000, Landmark Condominiums in the amount of $46,000 and Lions Square Lodge North in the amount of $45,000. These fees were collected for this turn lane improvement. The town publically bid the above projects and received bids on August 28, 2012. Only one bid was received for the Frontage Road improvements from Elam 10/16/2012 Town of Vail Meeting Minutes of September 4, 2012 Page 11 Construction; and two bids were received for the guardrail installation from Ideal Fencing Corp. and Adarand. Daly asked what the budget for this project was. Kassmel said the engineers estimate was $946,000 and the project is over $100,000. The guard rail estimate is lower than anticipated. Kassmel said staff recommends allocating $396,000 from the Traffic Impact Fee Fund to the 2012 budget for the required turn lane at West Lionshead Circle, and to authorize the Town Manager to enter into contracts, in a form approved by the Town Attorney, with Elam Construction Inc. to complete the South Frontage Road improvements and with Ideal Fencing Corp. to complete the guardrail installation. Further discussion ensued. Moffet asked if consultants and contractors feel the town is difficult to deal with and if that’s why the town didn’t get additional bids. Kassmel said if contractors are available, they will bid on projects. Daly asked about bid comparisons. Kassmel said it was difficult to do as there were only 6 out of 30 items that were similar in each project. Tjossem asked why do this project now instead of in the spring. Greg Hall stated these are part of CDOT requirements and approval from CDOT. Daly said if CDOT was a significant part of this decision process, the town should go back to them and ask them to pay for the additional premium costs. Further discussion ensued. Moffet made a motion to allocate $396,000 from the Traffic Impact Fee Fund to the 2012 budget for the required turn lane at West Lionshead Circle, and to authorize the Town Manager to enter into contracts, in a form approved by the Town Attorney, with Elam Construction Inc. to complete the South Frontage Road improvements and with Ideal Fencing Corp. to complete the guardrail installation. The motion was seconded by Rogers. A vote was taken and the motion passed, 5-2, with Daly and Tjossem opposed. Daly would like to see Vail Resorts Inc. pay for 50% of the costs and thinks cheaper prices may be available in the spring. The tenth 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, 7-0. The meeting adjourned at 8:10 p.m. Respectfully Submitted, Attest: __________________________________ Andrew P. Daly, Mayor ________________________________ Lorelei Donaldson, Town Clerk 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 1 Vail Town Council Meeting Minutes Tuesday, September 18, 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 Lorelei Donaldson, Town Clerk _________________________________________________________________ The first item on the agenda was Citizen Participation. Jim Lamont, representing the Vail Homeowners Association, stated he appreciated Council’s emergency alert system discussion at the work session. He requested they look into a simple alert system and how it can be used for wild fire notification in isolated areas of the community and how an additional system can be tagged on to the first system (i.e., Eagle County alert system). He agreed that $400,000 is too much to spend for the system presented at the work session. Shirley Welch, a Vail resident, stated Susie Tjossem had asked her to do a book over two years ago for the 50th Anniversary celebration. She handed out her book, Images of America, Vail the First 50 years to each of the Council members and the Town Manager, Stan Zemler. Mike Cacioppo said he disagreed with the assessment of the emergency alert system. He recalled when he was on the Town Council many years ago; a vehicle came through town with a tank on it. The Russians were doing maneuvers in the U.S. The former Vail Police Chief, Ken Hughey, stated the town didn’t have anything to defend against a tank. Cacioppo said he is not just interested in a fire alert system. He is interested and in favor of any kind of danger alert system for police, fire, roads and parks and recreation, in that order. Cacioppo said he thinks there may be increased terrorist attacks in the future. Kevin Foley expressed condolences to the family of Mark Ristow and Matt Mire for their losses. The second item on the agenda was the Town Manager Report. Zemler stated that speed management and issues will be presented at the October 16 meeting. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 2 The third item on the agenda was a presentation from the U.S. Forest Service (USFS) regarding Bark Beetle mitigation strategies, life safety and hazardous fuel accumulations. Mark Miller said the scaled down version of the alert system presented at the work session could cost around $250,000. Another option that could be considered was a rapid readiness alert system where guests could sign up to be on it for a day. He said there are less expensive alert systems and he will investigate. Miller introduced Dave Neely, District Ranger with the Eagle/Holy Cross District and Ross Wilmore, the East Zone Fire Management Officer (UCR); and Matt McCombs, Deputy District Ranger. Dave Neely said he is a new resident of Vail and is looking forward to being a Vail constituent. He stated their first priority is protecting human life against falling trees. He reviewed the power point presentation which included past, present and future strategies and direction for bark beetle and wildfire mitigation. He said much work has been completed by the USFS over the last 10 years relative to pine beetle mitigation in and around the Town of Vail (TOV), including Vail Mountain. The power point showed the progression of ecological and social tolerance and the realities of living in the Wild land Urban Interface (WUI). He explained the various types of cutting and remedies for areas and said this will be based on what they see at the time they enter a particular site. They are in the comment stage of the Piney Project Area as it is being resubmitted. He said living in these systems is like living in hurricane areas in Florida or flood areas in Louisiana. Nature is part of the system. The quality of life we enjoy is part of this system. In his experience, he hasn’t seen a better interaction between all the entities involved anywhere. He has been in exercises to simulate responses to incidents that could happen and feels very good on how they are positioned on the response part. Protection of human life is always their highest priority. Wildfires will be managed for multiple objectives. When it is favorable, they will be using fuels to manage the fires. There has been and will continue to be a very positive relationship and collaborative effort between the USFS and the TOV relative to wildfire mitigation and hazardous tree removal. Neely said it was important to discuss pertinent limitations in mitigation efforts, risks and benefits associated with logging vs. managed fire strategies. They requested Council provide direction to the USFS as to what they are comfortable with in regard to mitigation efforts and to discuss issues, options, trade-offs and future collaboration efforts. Further discussion ensued. Daly asked if roadless areas near Vail make it a tremendous risk area. Neely said under the Colorado Roadless Rule, they have ability to do wild land treatment in roadless areas. The slope stability in the Intermountain area and near Dowd Junction is the least stable in the area. Cutting into this area may make it more susceptible in stability versus a fire issue. They are actively focused on reaching out to communities. Ross McComb reviewed the Intermountain fire above Stephens Park in August 2009. He said several agencies responded and worked well together. He said there were 70 people from different agencies who initially attacked the one acre fire. So the importance of fires in the Vail area is taken seriously. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 3 Daly asked if other areas have used this fire as an exercise for their fire response. McComb said there was a fire in Summit County in March 2012 and a fire in Eby Creek, Eagle, earlier this summer. He said this was the first time working with the National Guard and they helped tremendously. They are working on identifying and integrating National Guard services into their system. Donovan asked about the red slurry fire retardant being safe for the environment. McComb said it was a great question. There was a lawsuit brought against the USFS because they used this product. They are restricted from using this within 300 yards of streams and they have identified species that may be affected by the retardant and where they live. They have to report instances if any areas are affected accidentally. Neely said that question leads into the broader conversation of tradeoffs and values and decision making to protect human life, infrastructure and letting nature take its natural course. Other tools or courses they could do are managed wild fire or a prescribed wild fire burn. Tjossem asked if they have assessed the hiking and biking trails throughout the Vail valley and if they have prioritized working on them. Neely said they can have a conversation about this but they can’t make all areas safe for guests using the wilderness. They have prioritized clearing within 100 feet near roads and removing trees as they fall. Daly thanked them for the informative presentation. Jim Lamont, Vail Homeowners Association, asked if the hierarchy of what needs to happen came out of the Governor’s office after last summer’s fires. McComb said they are talking about two different things. There was a reorganization of the fire services that were placed inside the Department of Public Safety and the Division of Emergency Management. The wild fire response agency was removed from the USFS. The second question is how individual incidents are managed. It boils down to the incidences and the way they are managed and which agencies have jurisdictions. Each agency’s line officers are also brought together as an incident management team. They have discussions on what type of team they need and what strategies are to be employed, which agency is in charge, etc. Lamont said the Colorado Springs fire brought to everyone’s attention the question when it switches from local to the federal level agencies. McComb said each entity that manages a fire has a voice in the decision making process and how they will work together. The fourth item on the agenda was an update on the Vail Golf and Nordic Clubhouse Renovation Project. Tom Braun, with Braun Associates representing the town, said they were going to focus on neighborhood issues, project design, driving range netting, site and landscape design, tents for “bonafide community events” and architecture design with a presentation from David Tanner about golf course design. Daly said bus access and parking lot access was to stay the same. Zemler said the last meeting left people with confusion on the netting and safety circumstances and the approach. The VRD is doing some mitigation on this and there have been a series of discussions. VRD agreed there needs to be dual tracks. The real solution is to address the 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 4 netting and create a safe environment for the grill and the entry point of carts and the clubhouse. There was confusion about ball flight from the driving range and ball flight down the fairway. The town is encouraging VRD to do a dual track and to pursue next steps. He said height and visibility of netting will be addressed. David Tanner has been working with the VRD and the town for awhile and will contribute his expertise to the discussion on netting and ball flights. Dave Tanner, with Tanner Consulting Group, stated he is from Valley Springs, California, lives on a golf course and started his company in 1985. His company has been asked to participate in ball trajectory studies since 1991. Over the years, there was very little data from golf ball companies regarding statistics on ball flight at the time. Netting has been an issue. They have done ball trajectories studies with golf courses all over the world on ball trajectories. They also worked with the Professional Golf Association (PGA) and other golf courses. They do a lot of design review and participate as experts in court proceedings. When they looked at this project, it is challenging when the golf course is already there. However, golf courses tend to change which is a standard in the industry. There are also better golfers today as well as equipment changes. The improvements in equipment have made them better, but property doesn’t move. As he looked at the driving range, the statistics show the majority of impacts happen within 180 yards on the right hand side. Looking at the current clubhouse situation, the driving range is too close to the clubhouse. It is traditional to have the driving range close to the clubhouse but the problem is the 180 yard danger zone. The average swing is 90 miles per hour (mph) in Vail. He went into further detail of golf swing speed averages, where the balls go, the net poles and the netting. He said there are options of straight netting along a straight line of existing netting or to use a baffle design of netting. There could be three sections of netting: 100 feet, 80 feet and 120 to 130 feet. By angling in, it’s like a back stop and gives them some openings between. Landscaping can be added between the baffles for relief. The life expectancy for netting is about 10 years. Netting is the least expense of the project. Poles and cables will be the most expensive. The 18th green was also a concern in its current location. Most golf courses today have much larger setbacks and they are on larger acreage. The setbacks from the parking lot and property lines are tight. They looked at locations for a new 18th hole and moving it to where they have placed it is in a wider space. He said they can shorten the hole and adding a putting green or chipping area makes sense. Adding baffle netting gives relief, adds landscape and can help with the safety issue. He has been involved with court cases with seven different fatalities on other golf courses and said being hit by balls does very serious damage. He said this design is a positive step forward. Daly asked Tanner about the reason for moving the existing green, stating it is a hazard to the parking lot and clubhouse due to the green placement. Tanner said the hazard is due to changes in equipment. He said in a new country club, there wouldn’t be less then a 200 foot setback. He said the new design is attractive and the finishing hole should be what the golfers remember. Hall said the price from the last meeting is less than one third of the cost as stated previously using three baffles instead of four. Zemler asked Hall what happens next. Hall said there will need to be a final foundation design, soils tests, calculation of wind loads, firm up prices and come back to Council and then go to Design Review Board. Tanner said the color is a satin black finish which holds up well to UV 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 5 rays. They have tried green and end up painting them black. Once poles are installed, the color tends to disappear. Also the lower 10 feet can be removable for snow loads in winter. Daly said there was significant concern about moving the 18th green and shortening it from a Par 5 to a Par 4. As they look at rebuilding the clubhouse and adding 2,000 square feet to it, there is a concern of the Council on risk management and safety. He asked if Council and the VRD should consider leaving the green where it is or is it foolhardy and asking for tragedy to strike. Tanner said they would be asking for a tragedy by keeping the 18th hole where it is. At the new tee location, the hole could stay a Par 5 and a final shot onto the green would be a short iron shot which is more controllable. Kurz asked if there were two poles per baffle. Tanner said there were three poles per baffle, with fifty feet on center and a total of 100 feet in length for the baffle. Tjossem asked in regard to the studies of hazards: what was more hazardous, a driving range or driving down the fairway. Tanner said the driving range due to varying levels of expertise and lots of balls being hit. He said someone always tries to purposely drive the ball over the net. Raul Hamlin stated he thought there was a misconception. He said the end of the shot or the last 30 yards are the ones where the curvature takes place and would affect the clubhouse. Tanner said by moving the hole back, thus shortening the approach shot, the turn point is when people are trying to get on the green in two strokes and spraying into the clubhouse area. Trees do not protect anyone from the balls. A lot more public is entering from the parking lot and the proximity would be much safer than where it is currently. Donovan asked if this was a short or long Par 5. Tanner said the new change is still a fairly long Par 5 but a bit shorter than what is there now. Compared to other courses, it’s still a long Par 5. They don’t worry about the golf professionals or the super star golfers. They worry about the golfers that have the drinks and try to put it in another county. That shot is hardest to control and more dangerous. By shortening it, it makes it easier to control the shot. Donovan asked if shortening the course makes the 18th hole less memorable. He said the course is rated a 71 and will remain a 71. He said he has seen the plans and this particular green is being enhanced, making it a larger surface. This particular green is currently a small surface and wears out more. This will make it more manageable for the maintenance staff. Art Abplanalp, representing the property owners near the golf course, said he has played this course and shots going into the parking lot are due to people not knowing what golf club to use and has nothing to do with technology. The balls go into the parking lot because people shoot it there. He said this is going to be a Par 4 not a Par 5 and will not be rated a 71. He said he believes Tanner was brought in to tell the Council and public what they want to hear. He said Council should listen to their community and not this outside person. Tanner said he is coming up on 28 years of experience and has specialized in golf safety and been an expert witness in many trials. He said it’s nice to be involved in a project that hasn’t been involved in a lawsuit prior to trying to make it better. He said he disagreed with Abplanalp, and that the tees will be set back and this hole will still be a Par 5 and not a Par 4. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 6 Malia Norbrega, representing the Vail Golf Course Townhomes, asked what studies have been done and if the rest of the golf course has been studied for safety issues. Tanner said he wasn’t asked to do the rest of the course, just the 18th hole and driving range. Stephen Connolly said the safety issue is a tough one. He said moving the 18th hole will also create issues. He asked what will happen when equipment advances again. Daly said there wasn’t any discussion about safety until a comprehensive look was done and until the clubhouse remodel came to light. Tanner said golfers are moving around the course by foot and on a cart versus people sitting at the clubhouse or attending a wedding and sitting still. They become more of a target. Their studies are improving all the time and are upgraded as new equipment gets better. Some of the older golf courses by themselves are fine on 80 acres. This course is 105 acres and it has become to some to be considered stagnate. However, Augusta changes their golf courses all the time, moving bunkers, moving greens around, taking bunkers away and improving them for safety and for technology. They can only deal with what is in front of them today to make this a safer facility. Steve Blanchard said he is not a golfer but said he doesn’t understand why it’s only focused on this hole. If they are talking about the safety of golfers, then shouldn’t they be looking at the whole golf course? Tanner said there is certainly some known risk when playing golf. There is the term “fore” which golfers use when a ball is hit toward someone and for etiquette. The rest of the golf course has been in play for many years and there haven’t been repetitive shots being hit. The problem is that more people will be where they could be hit. This will help to prevent them from being hit. Sam Maslak said the risk being created is due to expanding the golf clubhouse. Tanner said the fact there will be improvements doesn’t change the risk. The risk is already there. The golf course industry has taken a 40% hit in downturn. He lives on a golf course and enjoys it. He thinks adding a community space will be a wonderful asset. This area is such a picturesque place for everyone and adding this space to a golf course clubhouse is commonplace. An expansion of the clubhouse and modernization is badly needed. The final outcome is that events could be held there and the improvements will make it a safer facility, which was the goal from the beginning. Braun said four applications will be submitted. He reviewed the power point presentation in further detail. Pedro Campos, landscape architect with Zehren & Associates, said there were three goals he had for this evening: to demonstrate current design improvements; the design response from input received from the public; and that this clubhouse isn’t just about golf but has a Nordic ski component which has been dismissed and needs to be addressed as it is in use from November through April of each year. He asked the public to consider the Nordic component since they are trying to achieve multiple uses for the clubhouse. He reviewed the power point presentation about the past ideas and how it has now evolved to what is being proposed. From day one, they wanted to capture the views, separate the uses, concentrate on golf and Nordic staging, as well as other components including the baffle netting. They are working to keep the 18th hole outside of the 200 foot danger zone per David Tanner’s analysis. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 7 David Baum, with Zehren and Associates, continued the power point presentation to discuss the current building design and what they are proposing. He said golf, Nordic and event user groups currently all use the building and come in at the same entry point. One of the things they want to do is have a separate, dedicated the entry for each group. They are increasing the sound coefficient and mitigating sound and light going into the neighborhood and down lighting will be utilized. All spaces will be improved safety-wise with the baffled netting feature. Braun said they plan on coming back for continued discussion of next steps at the October 2nd meeting. They will follow-up and continue to update information from the September 18th meeting, review the operations plan, parking management plan and scale of the facility. Zemler said there are discussions on the economic evaluation of the building. Hall said the next step is to submit an application to PEC next week. Daly said they wanted to extend to this discussion to the October 16th meeting. Tjossem asked Tanner which was more dangerous for safety, the driving range hazard or the fairway hazard. Tanner said the driving range. He said safety is the reason for moving the green. Tjossem wanted clarification on why they want to move the 18th hole. Tanner said the driving range netting is what fixes the driving range issue. The clubhouse improvement and people being at the clubhouse is another safety issue as massing of people at the clubhouse is a safety issue when it is close to the 18th hole. She asked if this was theoretical versus real. Tanner said the designer is very good at his work. He said statistically, they know what will happen if the 18th hole isn’t moved. Tjossem asked Campos about the schematic regarding sense of play and a path near the patio for a wedding. Campos said it was a walking path and an access path and not a golf cart path. They are keeping as many trees as they can that are currently there. This area is more unstructured. Kurz asked about screening so it’s compatible with everything else and limiting use to just weddings. If it’s screened so heavily, they will lose the view of Gore Range and photo opts. Campos said they would have to go north and east to the golf grill for the photo opts. Mike Cacioppo said the plan he has seen tonight is terrific. He objects to the opponents using “adding an event center” as this plan is not adding an event center. It’s already been an event center for years and has held many events. They are improving the event center space that is there now. He said moving the 18th green is a terrific improvement and moving the green away from the homeowners should be terrific as well. The baffled netting will allow for additional terrific improvements. He doesn’t care what par the 18th hole is as long as everyone plays by the same rules. He said all Town of Vail tax payers have paid for these improvements and they all need to be taken into consideration. The conference center funds were transferred to these projects to keep heads in beds. All of these improvements will do that. Raul Hamlin said event center was the term he thought the Town of Vail used to push the project. He said it’s still a good idea but it has gotten out of hand. Why go through all the expense of oving the green if there is a conflict and it is limited for just 60-200 people. He said they need to look at the economic part of this as well as the golfers concerns. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 8 Daly said an economic study is being done. Stephen Connolly said this isn’t only about golf but golf is the economic generator for the VRD. This will impact all the VRD services if they get it wrong so we have to be careful. He thought the view was supposed to be of the Gore Range and not the neighborhood. Sound inside being mitigated is good but what about outside sound. They need to look at unintended consequences. Determining the size of the whole building is what should be looked at first. Design as close to the footprint of what is there now. The community space there is already at 120 people so adding space to accommodate 200 isn’t that far to go. Colin Callahan said his family has a home on Sunburst Drive. He reviewed what he thought was happening with the plan. He said Donovan stated the green isn’t being moved to improve the clubhouse. They are moving the green because of safety issues identified prior to this process in 2009. Council was informed about the safety issues of the 18th hole and the clubhouse remodel simultaneously. Callahan asked if the existing foundation is being used to save money. Zehren has done studies out there and they have been trying to reuse as much of the current building as possible to be cost effective. The expansion of fourteen feet would be a new expansion. They need to get in with a structural engineer to see if keeping the foundation as it currently is, is feasible and possible. Daly said a homeowner has asked to flip the grill and the community space. Dave Baum said the background information they used stated it was important to keep those uses separate and by flipping it, it didn’t allow for that. Art Abplanalp, representing several adjacent property owners to the golf course, said the town has received a lot of comments from the neighbors and community. He said it was 66 to 4 against relocating the 18th hole. He said moving the 18th hole was driven by the configuration of the clubhouse renovation. He referred to a design by a local architect that was drafted and configured on the north side and this worked for the neighbors. He said moving the events center on the north side does separate the users and does keep it from the neighborhood side of the building. When you look at the town’s mission statement, destroying the 18th hole doesn’t support the mission and values of the town. There were about a half dozen issues that still need to be addressed from a workshop that was done. It’s becoming evident that the use of the facility is going to be a greater problem then before. The neighborhood said they are entitled to peace and quiet. He said the neighbors don’t want more than four events a month. He said this is in direct opposition of the profit and loss analysis. He said the safety matter on the 18th green is nonexistent. Spending a million dollars is not a good use of public funds. Donovan said the public should go on to the VRD website for the VRD master plan, backup information and review the study and plan from 2010. Jim Lamont said he was in the dark. He asked Abplanalp about the building plans that were created for the neighborhood from a different architect to show a different project design using the north half for use of an events facility. Lamont said it would be helpful if the public has full disclosure of what was submitted to Council from the neighborhood. He wants the plan at the next meeting for public review. Donovan said the architect said it was confidential and to talk to 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 9 Abplanalp to get it. Lamont said this should come from the Council. Daly said they will make sure the plan is at the next meeting since a lot of people haven’t seen that plan. Lamont asked Pedro about the placement of the community center where windows and sound baffling can be built where greater security can be given to the neighborhood and community event users that can be handled with sound screening for outdoor sound. He sees efforts are being made by consultants and staff to address issues the neighborhood. Some progress has been made. There is a concern that is not being listened to. From a policy standpoint about when a redevelopment project is done to this extent, usually all of the earlier sins are corrected. He said there should be some degree of area for a setback required from the property line and separation from neighbors. He said they could angle down the retaining wall roof structure and add grass and trees on the south side of the parking lot so neighbors see landscaping and the golf course doesn’t lose parking spaces. Daly asked Pedro Campos to check if that section of the parking lot meets setback requirements. Braun said the parking requirements said it needs to be a 10 foot setback. This wall is considered a nonconforming legal use so they will leave it as is currently. Rogers said she would like to see what the cost would be. Braun said he would look at it as an alternative. Steven Blanchard asked if the kidney shaped area could be moved to the east instead of south which keeps it farther away from neighbors. He asked if the community space would require additional parking. Braun said the PEC would have to determine if additional parking would be required. Rogers said the Council can call up and overrule PEC decisions. Blanchard said the houses are closer on Sunburst than residences near Donovan Pavilion. Noise from events is a big concern. He said regardless of objections, the most important criteria seem to be generating income that is greater than the golf and neighborhood concerns. He said the obvious solution is to keep the community space the same size as it is now and leave larger events to the Donovan Pavilion. Daly said a look at the economic side will be looked at in four weeks and invited the public back to that meeting. Moffet said he keeps going back to the ballot language which was approved by the voters in Vail. He read into the record the ballot language from the 2011 Town of Vail election which included “expansion and improvement of the clubhouse at the Vail Golf Course and Nordic Center, including multi-use community space.” He said this ballot language and project was passed by Vail voters 801 versus 122. Donovan asked if at a future meeting, staff could show the Council how the outdoor spaces could be used in winter. As there was no further discussion on this item, a five minute break was taken at 9:12 p.m. The fifth item on the agenda was the Eagle River Water and Sanitation District (ERWSD) request for a utility easement on Tract C along Potato Patch Drive. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 10 Tom Kassmel, Engineer with the Town of Vail introduced Todd Fessenden with the ERWSD to discuss the easement. Kurz recused himself on this item as he sits on the ERWSD board. Todd Fessenden said they are asking Council for permission on their plan to design the repairs in the Potato Patch area. He reviewed the PowerPoint presentation. He said the ERWSD is planning on upsizing the water lines that run along Potato Patch Drive next year. In order to do so, they must realign portions of the sanitary sewer main. This project will be an extremely challenging project due to the narrow width and access constraints along Potato Patch Drive. In order to reduce some of the construction time and impact to the residents, as well as cost, ERWSD is requesting to run a portion of the sanitary sewer main through Tract C, which is owned by the Town of Vail, in order to short cut one of the long switchbacks along Potato Patch Drive. He asked them to review and approve the requested easement with the condition that a restoration plan be approved by the Public Works Department and the Design Review Board. Daly said the general conclusion was to provide the easement with the caveat to do what they say they are doing including planting 12-foot trees and vegetate the area with a guarantee on the revegetation, as well as winter snow shedding and avalanche issues since its over a 60% slope. Fessenden said the only thing that could be a challenge is to get the trees and vegetation to take on the steepness of the slope. The Council expectation is to come back with a landscape plan and a geodic study that says this makes sense. Fessenden said they hope to proceed with their design with a landscape plan. Council was not opposed to approving this easement. Donovan asked why they would consider doing this on a slope this steep. Fessenden said it was a much shorter section to cut and there will be unknowns, however, this section is fairly short. The ERWSD wants to reduce long term maintenance. When weighed out, this is not ideal but is a better, more do-able project and saves two weeks construction time. The sixth item on the agenda was first reading of Ordinance No. 11, Series of 2012, an ordinance extending amendments to Chapter 11-7, Other Signs, Sign Regulations, Vail Town Code, to establish regulations for informational and directional signs for public parking on private property and allowing the administrator to approve said signs subject to review, to November 19, 2013, and setting forth details in regard thereto. Warren Campbell, Chief Planner, said he applicant requests the Council approve Ordinance No. 11, on first reading. Ordinance No. 11 is intended to extend the effective date for temporary regulations allowing informational and directional signs for public parking on private property from November 19, 2012, until November 19, 2013. No other change to the regulations is proposed. Extending the effective date of these regulations will allow the town to explore opportunities for incorporating these signs into a broader guest services enhancement program which includes signage and wayfinding enhancements. Donovan said there was language on directional signs but is there language staff can turn to for the rest of the signage. Campbell said they can add additional language. Moffet made a motion to approve Ordinance No. 11, Series of 2012, on first reading and the motion was seconded by Rogers. A vote was taken and the motion passed unanimously, 7-0. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 11 The seventh item on the agenda was second Reading of Ordinance No. 10, Series of 2012, an ordinance amending Chapter 12-22, View Corridors, and Section 14-10-3C, Site Planning, Vail Town Code, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for the maintenance of adopted view corridors impacted by vegetation, and setting forth details in regard thereto. Warren Campbell, Chief Planner, said staff was back for second reading of the ordinance and that the language preventing the topping of trees is already in the code and already addresses it. Rogers made a motion to approve second reading of Ordinance No. 10 based on the findings in the memorandum, and the motion was seconded by Tjossem. Jim Lamont, representing the Vail Homeowners Association, said one of the view corridors being discussed that needs manicuring is the view of the Clock Tower and mountain near the Ski Museum. He said if we top trees is that acceptable for aspens. Campbell said this includes the topping of any trees in any of the view corridors. That has not been acceptable for any trees. He said an application to the PEC will need to be submitted and reviewed at the time of the submittal. Moffet said he wants the language in the ordinance to specifically state “topping of the trees.” It needs to be explicit. Campbell said the review process has been around for a long time and it would be addressed on a case-by-case basis. Staff wouldn’t allow any topping of trees during the process or feel it is appropriate. Further discussion ensued. Campbell stated the DRB has not allowed topping of trees in the past. Foley said it was in the memorandum twice. Moffet said the memorandum is not the law. He said someone could interpret that differently. Donovan said the town would be presenting these proposals and if a staff member proposes they top a tree, there are bigger problems. Rogers said every possible scenario can’t be in place and DRB is there to help enforce this process. Jim Lamont said if the public wants to opine on the subject, they can go to the DRB meetings or appeal to Council. And Council will decide if topping is allowed. Campbell said the appeal process would be in place to be used. A vote was taken and the motion passed unanimously, 7-0. The eighth item on the agenda was a request to continue the major subdivision and Ordinance Nos. 7, 8 and 9, Series of 2011, for Ever Vail to the November 6, 2012 public hearing. Warren Campbell, Chief Planner, requested the major subdivision and Ordinance Nos. 7, 8, and 9, Series of 2011, for Ever Vail be continued to the November 6, 2012 public hearing. Moffet made a motion to continue the major subdivision and Ordinance Nos. 7, 8 and 9, Series of 2011, for Ever Vail to the November 6, 2012 public hearing and the motion was seconded by Donovan. 10/16/2012 Town of Vail September 18, 2012 meeting minutes Page 12 Daly said he suggested they don’t go past Nov. 6th as they are not making process. Further discussion ensued regarding timing and continuing the project. Campbell said they are continuing these ordinances and resolution as they are working on the DIA and a conditional use of the gondola and put the parking to rest. If they don’t continue this project they would have to start over. Further discussion ensued. A vote was taken and the motion passed 6-1, with Foley opposed. The ninth item on the agenda was adjournment. As there was no further business, Moffet made a motion to adjourn and the motion was seconded by Foley. A vote was taken and the motion passed unanimously, 7-0. The meeting adjourned at 9:50 p.m. Respectfully Submitted, Attest: __________________________________ Andrew P. Daly, Mayor ________________________________ Lorelei Donaldson, Town Clerk 10/16/2012 Resolution No. 28, 2012 RESOLUTION NO. 28 Series of 2012 A RESOLUTION APPROVING A HOLY CROSS UTILITY EASEMENT WITHIN FORD PARK; 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 owns property described as a parcel of land situated in Section 8 , Township 5 South, Range 80 West of the 6th P.M., more particularly described at Reception No. 128019 in the Office of the Eagle County Clerk and Recorder, Eagle Colorado as shown in the attached Exhibit A; WHEREAS, the Town desires to dedicate a utility easement to Holy Cross Energy (“Holy Cross”) for that portion of town property; WHEREAS, the Council considers it in the interest of the public health, safety and welfare to enter into a utility easement agreement with Holy Cross for the Ford Park parcel shown in Exhibit A . NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. The Council hereby approves and authorizes the Town to enter into the utility easement with Holy Cross, in substantially the same form attached hereto as Exhibit A for illustrative purposes and kept on file in the office of the Town Clerk. 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 16th day of October, 2012. _________________________ Andrew P. Daly Town Mayor ATTEST: _____________________________ Lorelei Donaldson, Town Clerk 10/16/2012 10/16/2012 10/16/2012 10/16/2012 Resolution No. 29, 2012 RESOLUTION NO. 29 Series of 2012 A RESOLUTION AUTHORIZING THE TOWN MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING FOR THE PROVISION OF EMERGENCY DISPATCH SERVICE STAFFING BETWEEN THE TOWN OF VAIL, AND SUMMIT COUNTY GOVERNMENT; AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Town of Vail WKH³7RZQ´ , 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 ToZQ&KDUWHU WKH³&KDUWHU´  WHEREAS, WKHPHPEHUVRIWKH7RZQ&RXQFLORIWKH7RZQ WKH³&RXQFLO´ KDYHEHHQ duly elected and qualified; WHEREAS, the Town and Summit County *RYHUQPHQW WKH³&RXQW\´ HDFKPDLQWDLQDQG operate radio communications system for the transmission and dispatching of messages relating to fire and/or police protection and other public safety services; WHEREAS, at times each of the parties need additional emergency dispatching staff at their respective communications centers; WHEREAS, the Town and County desire to enter into an Intergovernmental Memorandum of Understanding ³Agreement´ regarding their provision of extra-duty dispatching staff each to the other when such staffing is necessary and available; and :+(5($6WKH&RXQFLO¶VDSSURYDORI5HVROXWLRQ1o. 29, Series 2012, is required to enter into an Intergovernmental Memorandum of Understanding. 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 on behalf of the Town in substantially the same form 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 16th day of October, 2012. _________________________ Andrew P. Daly Town Mayor ATTEST: _____________________________ Lorelei Donaldson, Town Clerk 10/16/2012 MEMORANDUM OF UNDERSTANDING FOR THE PROVISION OF EMERGENCY DISPATCH SERVICE STAFFING This Memorandum of Understanding for the Provision of Emergency Dispatch 6HUYLFHV6WDIILQJ UHIHUUHGWRKHUHDIWHUDVWKH³028´ LVPDGHDQGHQWHUHGRQWKLV _______day of October, 2012 by and between the TOWN OF VAIL, a Municipal &RUSRUDWLRQ WKH³7RZQ´ DQG6800,7&2817<*29(510(17DSROLWLFDO subdivision of the State of Colorado, on behalf of its Summit County Communications Center WKH³&RXQW\´ 7RZQDQG&RXQW\VKDOObe referred to herein together as the Parties. WITNESSETH WHEREAS, the Parties each maintain and operate radio communications systems for the transmission and dispatching of messages relating to fire and/or police protection and other public safety services; and WHEREAS, at times each of the parties need additional emergency dispatching staff at their respective communications centers; and WHEREAS, the Parties desire to enter into an agreement regarding their provision of extra-duty dispatching staff each to the other when such staffing is necessary and available; and WHEREAS, the Parties are governments authorized to enter into agreements pursuant to C.R.S. § 29-1-203 for purposes including the provision of any function, service, or facility lawfully authorized to each; and WHEREAS, the interests of the public are best served by the Parties entering into an agreement for the provision of extra-duty dispatching staff at such times as such emergency dispatch staffing assistance is needed by one party and available from the other. NOW, THEREFORE, in consideration of the mutual benefits that will inure to the public and the Parties, and the mutual covenants, agreements and promises set forth hereinafter, the Parties hereto agree as follows: 1. Assignment of Extra Duty Staff. Upon request and on an as-available basis, the Parties shall assign one or more of their qualified dispatch employees ³([WUD'XW\ 6WDII´ to provide dispatch services for the RWKHUSDUW\DWVXFKRWKHUSDUW\¶V communications centers. The sole responsibility of Extra Duty Staff during their assignment pursuant to this MOU shall be to provide usual dispatch services in accordance with all applicable professional standards, including answering 9-1-1 emergency phone calls, answering non-emergency phone calls, and providing resource assignment and monitoring of law, fire, and medical units. 10/16/2012 2 2. Requests for Extra Duty Staffing. Requests for assignment of Extra Duty Staff shall be made at least seventy-two (72) hours in advance of the time of assignment. Requests for assignment of dispatch employees shall be made by the UHTXHVWLQJSDUW\¶V FRPPXQLFDWLRQVGHSDUWPHQWGLUHFWRUWRWKHRWKHUSDUW\¶VFRPPXQLFDWLRQVGHSDUWPHQW director, or their respective designees. Assignments of Extra Duty Staff may be cancelled only on a minimum of three (3) hours notice. The minimum assignment shall be for two (2) hours. 3. Compensation. Compensation hereunder shall be at a rate of $37.00 per hour per Extra Duty Staff person, excluding travel time. In addition, should the shift last longer than originally scheduled, or circumstances require the Extra Duty Staff to stay on site later than originally scheduled, the requesting party is responsible for such additional compensation as would be paid aWWKHRYHUWLPHUDWHRIWKH([WUD'XW\6WDII¶VHPSOR\HU. Each Extra Duty Staff person VKDOOPDLQWDLQDWLPHUHFRUGLQWKHIRUPRI([KLELW´$´ which time record shall be completed and initialed by the employee at the end of the extra duty shift, and presented to the UHTXHVWLQJSDUW\¶VFRPPXQLFDWLRQVGHSDUWPHQW director or his or her designee for review and billing The employer of the Extra Duty Staff who provided services hereunder shall prepare a monthly invoice and present the invoice to requesting party¶VFRPPXQLFDWLRQVGLUHFWRU. Invoices shall be paid within thirty (30) days of the date they are received by the UHTXHVWLQJSDUW\¶VFRPPXQLFDWLRQV director and a copy of the invoice shall be included with such monthly payment. 4. Emergency Availability. Any Extra Duty Staff shall, at all times while assigned as provided in Paragraph 1, be available to respond to any incident occurring within the UHTXHVWLQJSDUW\¶VMXULVGLFWLRQ IRUWKHSHULRGRIWLPHWKDWWKH([WUD'XW\6WDIISHUVRQ¶V employer in the sROHGLVFUHWLRQRIWKHHPSOR\HU¶VFRPPXQLFDWLRQVGLUHFWRURUWKH UHTXHVWLQJSDUW\¶VFRPPXQLFDWLRQVdirector determines to be an emergency, at the time whichever request is made first. 5. Relationship of Employee. Extra Duty Staff assigned hereunder shall at all times remain in their UHVSHFWLYHSDUW\¶V employment acting within the scope of his/her employment. 6. Release of Liability ± Insurance. A. Except as specifically provided herein to the contrary: i. To the extent allowed by law, the Parties, on behalf of their respective officers, and employees, each hereby indemnifies and releases the other and its officers and employees from and waives any and all liability, for claims, and demands for damages of whatsoever nature, including without limitation claims arising from bodily injury, personal injury, property loss or damage, which arise out of or relate to the performance of services hereunder by Extra Duty Staff. For example, the County shall indemnify the Town for the acts and omissions of Town employees while providing 10/16/2012 3 ([WUD'XW\6WDIIVHUYLFHVDWWKH&RXQW\¶VFRPPXQLFDWLRQVFHQWHU DQGYLFH versa). ii. To the extent allowed by law, the Parties agree to indemnify, defend, and hold harmless the other, its officers, and its employees for any uninsured or deductible costs, including without limitation the cost of any judgment RUVHWWOHPHQWDQGWKHFRVWVRIGHIHQVHLQFOXGLQJDWWRUQH\¶VIHHVLQFXUUHG by the subject party, its officers, or its employees in connection with any claims of third parties against the other party, its officers, or its employees which arise out of or relate to the performance of services hereunder by Extra Duty Staff. For example, the County shall indemnify the Town for the acts and omissions of Town employees while providing Extra Duty 6WDIIVHUYLFHVDWWKH&RXQW\¶VFRPPXQLFDWLRQVFHQWHU DQGYLFHYHUVD  B. The Parties agree that so long as this MOU is in effect they will maintain general liability insurance. 7. Term and Termination of MOU. This MOU is effective as of the date first written above and shall remain in effect until such time as either party, on ten days notice, has terminated it by written notice to the other. 8. Notice. Notices given and invoices submitted by the Parties hereunder shall be in writing and delivered to the appropriate below stated address by hand, certified or regular U.S. Mail. Either party may from time to time designate in writing substitute addresses or persons to whom such notices shall be sent. William Pessemier, PhD. Jennifer Kirkland, Interim Director Summit County Communications Dept. Vail Public Safety Communications Center. P.O. Box 4188 75 S. Frontage Road West 0227 C.R. 1003 Vail, CO 81657 Frisco, CO 80443 9. General Terms and Provisions. A. Independent Contractor. Extra Duty Staff assigned hereunder are not employees of the requesting party. 7KH([WUD'XW\6WDIISHUVRQ¶Vemployer shall be responsible for paying federal (including social security) and state income tax on any monies earned pursuant to this contract relationship. The Parties are each responsible for complying with all employment laws and insurance laws relating to its own employees. B. Governmental Immunity. Nothing in this MOU shall be construed against any party hereto as a waiver of the limitations on damages, or as a waiver of the privileges, immunities, or defenses provided to, or enjoyed by, any of the Parties under common law or pursuant to statue including, but not limited to, the Colorado Governmental Immunity Act, Section 24-10-101, et seq., C.R.S. and Sections 24-32-2604, et seq., C.R.S. 10/16/2012 4 C. Worker Compensations and Pension Benefits. Pursuant to Sections 29-5-109 and 29-5-110, C.R.S., and this MOU, WKH([WUD'XW\6WDIISHUVRQ¶VHPSOR\HUVKDOODW all times be and remain responsible for providing any ZRUNHUV¶FRPSHQVDWLRQor pension benefits of its employees, including disability, death, and survivor benefits, to which the individual would otherwise be entitled if the injury, disability, or death had occurred with the HPSOR\LQJSDUW\¶V jurisdictional boundaries. Extra Duty Staff assigned hereunder shall report any injuries incurred ZKLOHSHUIRUPLQJVHUYLFHVKHUHXQGHUWRVXFKSHUVRQ¶VHPSOR\HUUHFHLYHPHGLFDO WUHDWPHQWIRUVXFKLQMXULHVWKURXJKKLVKHUHPSOR\HU¶VPHGLFDOSURYLGHU V DQG ZRUNHU¶Vcompensation benefits or unemployment insurance benefits for such person shall be the responsibility of his/her employer. For example, if a County HPSOR\HHLVLQMXUHGZKLOHSURYLGLQJ([WUD'XW\6WDIIVHUYLFHVDWWKH7RZQ¶V communications center such person shall submit his/her workers compensation claim to the County. D. Prior Agreements. The terms of this MOU shall supersede the terms of any pre- existing agreements between Town and County regarding assignment of Town dispatch employees to work for County, including but not limited to the Intergovernmental Agreement for the Provision of Emergency Dispatch Staffing dated May 15, 2008, which is hereby terminated. This MOU shall not affect or supersede any other agreements, including mutual aid agreements between SCHMT members except as such agreements relate to assignment of Extra Duty Staff. E. Amendment. This MOU may be amended from time to time by written amendment duly authorized by the Parties. No modification or waiver of this MOU or any covenant, condition or provision contained herein shall be valid unless in writing and duly executed by all parties. F. Authorization. The signatories to this MOU affirm and warrant that they are fully authorized to enter into and execute this MOU. G. Whole MOU. This MOU embodies the whole agreement between the Parties regarding assignment of Extra Duty Staff, and there are no inducements, promises, terms, conditions or other obligations made or entered into by the Parties other than those contained herein. H. Successors and Assigns. This MOU shall be binding upon the Parties hereto, their respective successors or assigns. Neither Party may assign, delegate, sublease, pledge, or otherwise transfer any rights, benefits, or obligations under this MOU to any party without the prior written consent of the non assigning party. I. Appropriation of Funds/ Multi-Year Contracts. Payment pursuant to this MOU, whether in whole or in part, is subject to and contingent upon the continuing DYDLODELOLW\RIHDFKRIWKH3DUW\¶VIXQGs for purposes hereof. In the event that said funds, or any part thereof, become unavailable as determined by a Party, the Party may immediately terminate this MOU. The obligations of the Parties hereunder shall not constitute a general obligation indebtedness or multiple year direct or indirect debt or other financial obligation whatsoever within the meaning of the Constitution or laws of the State of Colorado. 10/16/2012 5 J. Severability. All agreements, covenants and terms contained herein are severable, and in the event that any such agreement, covenant, or term is held invalid, by a court of competent jurisdiction, this MOU shall be interpreted as if such invalid covenant, or term were not contained herein. K. Applicable Law. At all times during the performance of this MOU, the Parties herein shall strictly adhere to all applicable federal, state and local laws, rules, and regulations that have been or may hereafter be established. All work and services performed under this MOU shall comply with federal, state and local laws, rules and regulations. This MOU shall be interpreted in all respects in accordance with the laws of the State of Colorado. L. No Benefit to Inure to Third Parties. This MOU does not and shall not be deemed to confer upon or grant to any third party any right to claim damages or bring any lawsuit, action or other proceedings against either Party because of any breach hereof, or because of any terms, covenants, agreements or conditions contained herein. M. Counterparts. This MOU may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, this Memorandum of Understanding for the Provision of Emergency Dispatch Services Staffing is executed and entered into on the day and year first written above. TOWN OF VAIL BOARD OF COUNTY COMMISSIONERS OF SUMMIT COUNTY, COLORADO By_______________________________ By____________________________ [Name], Town Manager Gary Martinez, County Manager 10/16/2012 6 (;+,%,7³$´ MEMORANDUM OF UNDERSTANDING FOR THE PROVISION OF EMERGENCY DISPATCH SERVICE STAFFING PARTY: ADDRESS: CONTACT: CONTACT #: DATE WORKED HOURS WORKED DISPATCHER:____________________________________________________ SIGNATURE:_____________________________________________________ 10/16/2012 Resolution No. 30, Series of 2012 RESOLUTION NO. 30 SERIES OF 2012 A RESOLUTION APPROVING THE OPERATING PLAN AND BUDGET OF THE VAIL LOCAL MARKETING DISTRICT, FOR ITS FISCAL YEAR JANUARY 1, 2013 THROUGH DECEMBER 31, 2013 WHEREAS, the Town of Vail (the “Town”), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the “Charter”); and WHEREAS, the members of the Town Council of the Town (the “Council”) have been duly elected and qualified; and WHEREAS, C.R.S. §29-25-110 requires the Council’s annual approval of the operating plan the Vail Local Marketing District (the “VLMD”). NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council approves the operating plan and budget of the VLMD for marketing related expenditures beginning on the first day of January, 2013, and ending on the 31st day of December, 2013. 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 16th day of October, 2012. ___________________________________ Andrew P. Daly, Town Mayor Attested: _________________________ Lorelei Donaldson, Town Clerk 10/16/2012 TO: Vail Town Council FROM: Community Development Department DATE: October 16, 2012 SUBJECT: A request to enter into a license agreement with MJG Trust for existing private improvements (roof overhang & utility cabinet) on town-owned Tract B, Vail/ Lionshead Third Filing, adjacent to 765 Forest Road/ Lot 8, Block 2, Vail Village Sixth Filing, and setting forth details in regard thereto. Applicant: MJG Trust Planner: Rachel Dimond I. DESCRIPTION OF REQUEST x Permission to enter into a license agreement with the Town of Vail for use and maintenance of town property for an existing roof overhang and utility cabinet. x License agreement would grant the Town the ability to revoke the license at any time with notice II. BACKGROUND x Subject property was granted a side and front setback variance for the garage in April 1981, with garage permitted to be built one foot from west property line. x A building permit was granted to allow an 18 inch roof overhang on the garage, which would encroach onto adjacent town property. x The building was built and approved within 0.42 feet from the property line, with roof overhang and utility cabinet encroaching onto adjacent town property. x No license agreements were required for encroachments in 1981. x Subject property received design review and building permit approval in 2012 for improvements to the property, including reroof of garage. III. RECOMMENDATION The Vail Town Council shall approve, approve with conditions, or deny the applicant’s request to enter into a license agreement with the Town of Vail for use and maintenance of town property for a roof overhang and utility cabinet. Should the Vail Town Council choose to approve the applicant’s requests, Staff recommends the Council pass the following motion: 10/16/2012 Town of Vail Page 2 “The Vail Town Council, on behalf of the property owner, approves the applicant’s request to enter into a license agreement for a proposal to maintain private improvements (roof overhang and utility cabinet) on the Town of Vail owned town-owned Tract B, Vail/ Lionshead Third Filing, adjacent to 765 Forest Road/ Lot 8, Block 2, Vail Village Sixth Filing, and setting forth details in regard thereto.” Should the Vail Town Council choose to approve the applicant’s requests, Staff recommends the Council include the following condition: “The license agreement shall include a clause that allows the license to be revoked by the Town of Vail at any time for any reason, thus requiring the encroachments to be removed.” IV. ATTACHMENTS A. Vicinity map B. Survey C. Photos of improvements on town property 10/16/2012 AREA OF ENCROACHMENT W FOREST RD Subject Property 050100 Feet Vail Village Filing 6, Block 2, Lot 8Vail Village Filing 6, Block 2, Lot 8 (765 Forest Road)(765 Forest Road) 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: October 10, 2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Town Manager Report: 1) Timing on Renovation for Ford Park softball fields - Summer 2014; 2) Bicycle Dismount Zone in Vail Village; 3) Winter Parking Program and Rates for 2012-2013 season; and 4) Council preference for Commission on Special Events (CSE) vacancy process for a two month vacancy: 1) forgo the normal process of posting and publishing, as has been suggested by the CSE, and make an appointment from the most recent applications for previous vacancies from applicants that submitted letters of interest from June 2011 to June 2012 that are still interested; or 2) leave the position vacant until the position comes up for renewal in December, 2012. Telephone calls have been made to all the applicants on the list. All have expressed interest except for Sarah Franke who has time constraint issues. Also staff hasn't heard back from the following applicants: Dave Chapin, Janyce Brandon, Jeff Andrews and Katherine Richardson. The list of interested parties from June 2011 to June 2012 is attached. If you would like to review their letters of interest, you may go to the dates on the attachment in past Council agendas. PRESENTER(S): Various ATTACHMENTS: Bicycle Dismount Zone in Vail Village memo Winter Parking Program CSE 2011-2012 CSE applicants list 10/16/2012 To: Vail Town Council From: Dwight Henninger, Chief of Police Justin Dill, Sergeant Date: October 10, 2012 Subject: Bicycle Dismount Zone in Vail Village I. SUMMARY The question has been raised if the Town can implement a bicycle dismount zone in the area of Bridge Street and Gore Creek Drive, the answer is yes. If Council desires the Village area to be a bicycle dismount zone, this can be accomplished for next spring. II. DISCUSSION After some research into the legality of a bicycle dismount zone covering the Village Street in the Town of Vail, we have the authority to erect official traffic control devices to create a designated bicycle dismount zone. Staff recommends this new proposal to exclude the Pedi cabs as they have a specific Town ordinance regulating their operating capability. Staff does not believe we need to enact a separate ordinance to create a dismount zone based on existing statute and code. We have been unable to locate any specific ordinance in cities enforcing dismount zones, like Ft. Collins, beyond obedience to official traffic control devices. Currently the stairs on Wall Street and near the Children’s Fountain have dismount signs. 10/16/2012 Town of Vail Page 2 III. STATUES, CODES AND CASE LAW Following is the pertinent Colorado Revised Statues and Model Traffic Code citations as well as a case law citation with respect to home-rule and enacting laws of municipal concern if it were determined a desire to create a specific municipal ordinance. Included is language defining a dismount zone from the bicycle rules handbook from Colorado State University in Ft. Collins. Under C.R.S. 42-4-1412 (10)(b) and Model Traffic Code 1412: 42-4-1412. Operation of bicycles and other human-powered vehicles (1) Every person riding a bicycle or electrical assisted bicycle shall have all of the rights and duties applicable to the driver of any other vehicle under this article, except as to special regulations in this article and except as to those provisions which by their nature can have no application. Said riders shall comply with the rules set forth in this section and section 42-4-221, and, when using streets and highways within incorporated cities and towns, shall be subject to local ordinances regulating the operation of bicycles and electrical assisted bicycles as provided in section 42-4-111. (10) (b) A person shall not ride a bicycle or electrical assisted bicycle upon and along a sidewalk or pathway or across a roadway upon and along a crosswalk where such use of bicycles or electrical assisted bicycles is prohibited by official traffic control devices or local ordinances. A person riding a bicycle or electrical assisted bicycle shall dismount before entering any crosswalk where required by official traffic control devices or local ordinances. Under 42-4-111(1)(y): 42-4-111. Powers of local authorities (1) This article shall not be deemed to prevent local authorities, with respect to streets and highways under their jurisdiction and within the reasonable exercise of the police power, except those streets and highways that are parts of the state highway system that are subject to section 43-2-135, C.R.S., from: (y) Regulating the local movement of traffic or the use of local streets where such is not provided for in this article; Here is a case law citation regarding home rule and matters of municipal concern: Municipal ordinance of local concern supersedes conflicting state statute. Under the home-rule amendment, once a matter is determined to be a matter of local and municipal concern, any local ordinance in a home-rule city addressing the matter will 10/16/2012 Town of Vail Page 3 supersede a conflicting state statute. People v. Hizhniak, 195 Colo. 427, 579 P.2d 1131 (1978). The following references were obtained from : police.colostate.edu/pdfs/Bike- Booklet.pdf Dismount Zone = all areas of the University posted for no bicycle riding and marked with ground graphics and/or “Dismount” signs. All Dismount Zones apply to skateboards as well. 1. Dismount is defined as “walking beside the bicycle with both feet off the pedals at the same time.” Q. Skateboard = any device consisting of a footrest mounted on wheels less than fourteen inches (14") in diameter, upon which a person may ride, that is propelled solely by human power. This includes rollerskates, in-line skates (rollerblades), and non- motorized scooters. These devices are not vehicles. They are considered toys by CRS (42-4-109 (Sub.¶9)). The following actions are considered to be safety violations and subject the violator to a $25.00 fine: – Riding in a Dismount Zone IV. CONCLUSION If Council desires to implement a bicycle dismount zone for the Village, this can be done with the existing legislation at your direction for this next summer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±-DQ-DQDQG)HE $YDLODEOHWR9DLOEXVLQHVVOLFHQVHKROGHUV¶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x*RUH&UHHN7UDLOKHDG x(DVW9DLO,QWHUFKDQJH7UDLOKHDG x3LWNLQ&UHHN7UDLOKHDG x%RRWK)DOOV7UDLOKHDG x1RUWK7UDLO6SUDGGOH&UHHN7UDLOKHDG x1RUWK7UDLO5HG6DQGVWRQH&UHHN7UDLOKHDG x1RUWK7DLO%XIIHKU&UHHN7UDLOKHDG x1RUWK7UDLO'DYRV7UDLOKHDG 3DUNLQJDYDLODELOLW\LVOLPLWHGDQGVRPHVSDFHVDUHUH VWULFWHGWRWKUHH-KRXUWUDLOKHDGXVH 9$,/75$16,7±)5((%86 6FKHGXOHVDYDLODEOHDWZZZYDLOJRYFRPRU  - :LQWHUVFKHGXOHEHJLQV'HF ,Q-7RZQ6KXWWOH*ROGHQ3HDN9DLO9LOODJHDQG/LRQVKHDG HYHU\WRPLQXWHV :HVW9DLO*UHHQORRS6)URQWDJHWR1)URQWDJH5G DPWRSPHYHU\PLQXWHV SPWRDPHYHU\PLQXWHV :HVW9DLO5HGORRS1RUWKWR6RXWK)URQWDJH5G DPWRSPHYHU\PLQXWHV SPWRDPHYHU\PLQXWHV )RUG3DUNWR)RUG3DUNDQGVRFFHUILHOGSDUNLQJORWV DPWRSPWLPHVYDU\±VHHVFKHGXOH (DVW9DLO(DVWRQ)URQWDJH5GWR%LJKRUQ5G DPWRDPHYHU\PLQXWHV DPWRSPHYHU\PLQXWHV SPWRDPHYHU\PLQXWHV *ROI&RXUVH)URQWDJH5GWR&OXEKRXVH DPWRSPWLPHVYDU\±VHHVFKHGXOH DPEXVDYDLODEOHXSRQUHTXHVW 6DQGVWRQH DPWRDPWLPHVYDU\±VHHVFKHGXOH /LRQV5LGJH/RRS DPWRSPHYHU\PLQXWHV 6FKHGXOHVDYDLODEOHDWZZZHDJOHFRXQW\XVWUDQVLW RU  - (&27UDQVLWUXQVEXVHVKRXUVDGD\IURP9DLOWRDOO SRLQWVZHVWLQ(DJOH&RXQW\LQFOXGLQJ0LQWXUQ(DJOH - 9DLO$YRQ(GZDUGV:ROFRWW(DJOH(DJOH&RXQW\ $LUSRUW*\SVXPDQG/HDGYLOOH :LQWHUVFKHGXOHEHJLQV1RY &RVWLVHDFKZD\ WR/HDGYLOOH IRUDGXOWVDQG IRUVHQLRUVDQG\RXWKDQGXQGHU&KLOGUHQDQG XQGHUULGHIUHH3XQFKGDLO\DQGPRQWKO\SDVVHVDYDLO DEOH (&275$16,7 10/16/2012 CSE interested parties that submitted: August 16, 2011: Janyce Brandon Katherine Richardson Robert Ruder Nicole Whitaker Joyce Gedelman-Viers *- replacing this position, which term expires 12/2012) December 20, 2011: Jeff Andrews Janyce Brandon Dave Chapin Allison Faulconer Austin Gavlak Evan Puglia Rebecca Steffen Mary Lou Armour Those who applied at this time are current board members: Bobby Bank (current board member) Jenn Bruno (current board member) Sonny Kerstiens (current board member) Rayla Kundolf (current board member) June 5, 2012 Sarah Franke John O’Neill Nicole Whitaker Barry Davis (current board member) (NOTE: Dave Chapin served on the CSE for 5 years – from 2005 to 2010) 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: A request to enter into a license agreement with David & Alexandra Ransburg for existing private improvements (patio & water feature) on town-owned streamtract (Unplatted), adjacent to 463 & 473 Beaver Dam Road/ Lots 4&5, Block 4, Vail Village Filing 3, and setting forth details in regard thereto. PRESENTER(S): Rachel Dimond ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with conditions, or deny the applicant’s request to enter into a license agreement with the Town of Vail for use and maintenance of town property for a patio and water feature. BACKGROUND: l A duplex was built on the subject property in 1988, with no encroachments onto Vail Resorts-owned adjacent property shown on plans. l In 1990, the applicant was granted permission to subdivide the property into three parcels, including one parcel for each side of the duplex and a common parcel. l In 1990, Vail Resorts and the applicant submitted a number of documents to the Town of Vail stating an encroachment agreement would be executed, or said encroachments would be removed. The encroachment agreement was never executed, but the encroachments remain. l In 1999, Vail Resorts deeded the subject streamtract to the Town of Vail. l On July 19, 2011, the Vail Town Council unanimously approved a zero tolerance policy for encroachments into town-owned streamtract in order to improve the health of Gore Creek. STAFF RECOMMENDATION: Because the Town of Vail approved the encroachments in 1993, the Community Development Department recommends the Vail Town Council approves, with conditions, the applicant’s request. Should the Vail Town Council choose to approve the applicant’s requests, Staff recommends the Council include the following condition: “The license agreement shall include a clause that allows the license to be revoked by the Town of Vail at any time for any reason. ATTACHMENTS: Ransburg Memo 101612 Ransburg Attachment A Ransburg Attachment B Ransburg Attachment C Ransburg Attachment D Ransburg Attachment E 10/16/2012 TO: Vail Town Council FROM: Community Development Department DATE: October 16, 2012 SUBJECT: A request to enter into a license agreement with David & Alexandra Ransburg for existing private improvements (patio & water feature) on town-owned streamtract (Unplatted), adjacent to 463 & 473 Beaver Dam Road/ Lots 4&5, Block 4, Vail Village Filing 3, and setting forth details in regard thereto. Applicant: David and Alexandra Ransburg, represented by Jack Hunn Planner: Rachel Dimond I. DESCRIPTION OF REQUEST • Permission to enter into a license agreement with the Town of Vail for use and maintenance of town property for an existing patio and water feature • The applicant would like to limit revocability of the license agreement to certain conditions II. BACKGROUND • A duplex was built on the subject property in 1988. • A design review application was submitted in 1993, with an electrical permit issued for the recirculating pump for the water feature on Vail Resorts property. • In 1990, Vail Resorts and the applicant submitted a number of documents to the Town of Vail stating an encroachment agreement would be executed, or said encroachments would be removed. The encroachment agreement was never executed, but the encroachments remain. • On December 21, 1999, Vail Resorts deeded the subject streamtract to the Town of Vail. • On July 19, 2011, the Vail Town Council unanimously approved a zero tolerance policy for encroachments into town-owned streamtract in order to improve the health of Gore Creek. However, improvements that were approved by the Town have been permitted to remain in place with license agreements that include revocability clauses. III. RECOMMENDATION 10/16/2012 Town of Vail Page 2 The Vail Town Council shall approve, approve with conditions, or deny the applicant’s request to enter into a license agreement with the Town of Vail for use and maintenance of town property for a patio and water feature. Because the Town of Vail approved the encroachments in 1993, the Community Development Department recommends the Vail Town Council approves the applicant’s request. Should the Vail Town Council choose to approve the applicant’s requests, Staff recommends the Council pass the following motion: “The Vail Town Council, on behalf of the property owner, approves the applicant’s request to enter into a license agreement for a proposal to maintain private improvements (patio & water feature) on town-owned streamtract (Unplatted), adjacent to 463 & 473 Beaver Dam Road/ Lots 4&5, Block 4, Vail Village Filing 3, and setting forth details in regard thereto.” Should the Vail Town Council choose to approve the applicant’s requests, Staff recommends the Council include the following condition: “The license agreement shall include a clause that allows the license to be revoked by the Town of Vail at any time for any reason. IV. ATTACHMENTS A. Vicinity map B. Photos of improvements on town property C. Survey of improvements D. Letter from applicant’s representative E. Supporting documentation from applicant 10/16/2012 AREA OF ENCROACHMENT BEAV E R D A M R D W FO REST RD BE A V E R D AM C I R W FO RE ST RD Subject Property 0100200 Feet Vail Village Filing 3, Block 4, Lots 4 & 5Vail Village Filing 3, Block 4, Lots 4 & 5 (463 & 473 Beaver Dam Road)(463 & 473 Beaver Dam Road) 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: October 10, 2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 HUNN CONSULTING GROUP, LLC PO BOX 1095 / VAIL, CO 81658 970-390-4537 jack@hunnconsultinggroup.com October 11, 2012 George Ruther Community Development Director Town of Vail, Colorado 75 South Frontage Road Vail, Colorado 81657 RE: 463/473 Beaver Dam Road; Request for Inclusion on Town Council Meeting Agenda for October 16, 2012 Dear George: Please consider this letter as a formal request from my clients, David and Alexandra Ransburg, to be included on the agenda for the October 16, 2012, Vail Town Council meeting. %HORZ,ZLOOH[SODLQWKH5DQVEXUJ¶VUHTXHVWDQGWKHUHDVRns for it. I will be at the Council PHHWLQJQH[WZHHNDVWKH5DQVEXUJ¶VUHSUHVHQWDWLYHWRGHVFULEHWKLVVLWXDWLRQIXUWKHUto provide additional information, and to address any questions raised by Council. I would appreciate it if you would include this letter in WKH&RXQFLO¶VSDFNHWIRUWKHPHHWLQJVRWKDWWKH\PD\UHYLHZLWin advance. BACKGROUND The Ransburgs have owned the property at 463/473 Beaver Dam Road since 1987. They constructed a duplex residence on it, which was completed in 1990. In connection with that construction, and in the few years after that, they constructed some improvements that encroached upon a parcel at the rear of their property. The encroaching improvements consist of landscaping, a stone patio, a stone drainage retention pond and related improvements that allow the pond to function as part of a water feature on the property as well. At the time the encroachments were built, Vail Associates owned the property behind 463/473 Beaver Dam Road WKH³7UDFW´ . At that time, the Ransburgs, through their counsel, negotiated an encroachment agreement with Vail Associates. That document was finalized and was, in fact, signed by the Ransburgs and returned to Vail Associates. All improvements constructed were subject to building permits and appropriate inspections by the Town of Vail. The Ransburgs are now under contract to sell their home. During the course of their EX\HU¶VUHYLHZRIWLWOHDQGGXHGLOLJHQFHLWEHFDPHFOHDUWKDWDOWKRXJKWKHHQFURDFKPHQW agreement was signed and returned to Vail Associates, it was inadvertently not signed and not recorded by Vail Associates at that time. It simply fell through the cracks, and the Ransburgs were not aware of this until now, when the property is being sold. The Tract was conveyed by Vail Associates to the Town of Vail in 1999, many years after the encroachments were constructed. 10/16/2012 George Ruther Director of Community Development Town of Vail, Colorado October 11, 2012 Page 2 of 3 REQUEST OF THE TOWN OF VAIL Our request is for the Town to grant to the Ransburgs, and their successors in title to 463/473 Beaver Dam Road, a license that permits the encroachments to exist on the Tract until such time as the Town requires use of the portion of the Tract upon which the encroachments are located, and so long as the encroachments are properly maintained and not enlarged. Upon the &RXQFLO¶VDSSURYDODQGGLUHFWLon, we will work with Town staff and the Town attorney to develop that agreement. RATIONALE We hope the Town Council will agree that there are many good reasons to formalize the encroachment upon the Tract. We believe these reasons are: 1. The encroachments are limited and are of benefit to the Tract. The encroachments consist only of landscaping, a sand-set flagstone patio, and the drainage retention pond and related equipment and facilities. We will present photos and survey documents at the Council meeting to illustrate this. In addition, the encroachments serve as part of a system of drainage run-off management from Vail Mountain, adjacent properties as well as the Town¶s roadway system. Water collects in the uphill ditch along Rockledge Road and then flows under the Beaver Dam Road and across several adjacent properties, ultimately flowing into the pond adjacent to 463/473 Beaver Dam Road. Any sediment in the water settles in the pond, and excess water flows out of the pond onto the Tract in a controlled manner. Although the pond serves as part of a water feature that benefits the home, it also benefits the Tract and, in turn, Gore Creek. 2. 7KHHQFURDFKPHQWVGRQRWDIIHFWWKH7RZQ¶VVWUHDPVHWEDFN. Preliminary measurements indicate that the encroachments are no closer than 270 feet to the EDQNRI*RUH&UHHN7KH7RZQ¶VVWUHDPVHWEDFNDWIHHWIURPWKHFHQWHUOLQH of the creek, is not affected. 3. The encroachments were approved at the time they were constructed. It is unfortunate that the encroachment agreement negotiated with Vail Associates in 1990 was not signed by them and was not recorded. However, it is clear that the encroachments were acceptable to the property owner at the time; in fact, a letter from Vail Associates was delivered to the Town in February of 1990 stating exactly that. It is also clear, from building permit and inspection records, that the encroachments were not objectionable to the Town at the time they were constructed. This makes sense given that they serve to help control drainage run- off for the benefit of the Tract. 4. The encroachments were in existence when the Town took title to the Tract. The encroachments had been in place for almost 10 years when the Town acquired the Tract from Vail Associates. That conveyance was made expressly subject to existing uses of the Tract as of the date of the deed. The 10/16/2012 George Ruther Director of Community Development Town of Vail, Colorado October 11, 2012 Page 3 of 3 encroachments have remained in place and have not caused any concern for the Town on a practical basis for the 13 years since the Town has owned the Tract. 5. Other properties in the area have similar, approved encroachments. For instance, the property immediately to the east of 463/473 Beaver Dam Road has extensive encroachments of landscaping and water feature elements. This encroachment is permitted under an executed and recorded encroachment agreement with Vail Associates dated just before the Town acquired title to the Tract in 1999. 6. Denying permission for the encroachment would be a hardship for the owner. As mentioned, 463/473 Beaver Dam Road is under contract, and the issue of this encroachment has been raised as a possible impediment to that sale. If the encroachment agreement is not granted, the Ransburgs may lose the sale. If the encroachments must be removed because they are not permitted, the value of the home will be diminished and adverse consequences would result from improper GUDLQDJHWKDWZRXOGDIIHFWQRWRQO\WKHSURSHUW\EXWWKH7RZQ¶V7UDFWDVZHOO Thank you in advance for your assistance DQGIRUWKH7RZQ&RXQFLO¶VFRnsideration of this request. As mentioned above, I will be present at the meeting to make a short presentation on this matter and answer any questions that Council may have. Sincerely, Jack Hunn, President Hunn Consulting Group, LLC 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Colorado Department of Transportaion(CDOT) Project Update regarding Chain Stations along Interstate 70 in Vail Colorado PRESENTER(S): Michelle Hansen from Stouflous; Martha Miller and David Oldham from CDOT; and Greg Hall and Dwight Henniger with the Town of Vail ACTION REQUESTED OF COUNCIL: Provide feedback and allow public input with regard to the information presented BACKGROUND: CDOT has taken on a study to identify improvements to increase the capacity of safety of the chain up and down stations in Vail along I-70. See attached memo for addtional information regarding the project. STAFF RECOMMENDATION: Provide feedback and allow public input with regard to the information presented ATTACHMENTS: Project Memo Project Exhibits 10/16/2012  Memo To:GregHall From:MichelleHansen,PE Date:October10,2012 Re:I 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Second Reading of Ordinance No. 12, Series of 2012, an ordinance adopting the 2012 Building Codes with amendments. PRESENTER(S): Martin Haeberle, Mike Vaughan ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No.12, Series of 2012 upon second reading. BACKGROUND: The Building and Fire Appeals Board has held public hearings monthly over the last nine months reviewing the changes from the adopted building codes and amendments to the 2012 Building Codes for the purpose of recommending the adoption of the 2012 Building Codes by the Vail Town Council. The Board has eliminated many of the amendments in the towns current building codes that are now within the body of the building codes or out of date with current technology. The Board has also added provisions that address construction practices that are unique to our community. Public input has been a key factor in these changes. Ordinance No. 12, Series of 2012 was approved as presented by the Vail Town Council on first reading on October 2, 2012 with a 5-1-0 vote. STAFF RECOMMENDATION: The Community Development Department and Fire Department recommends the Vail Town Council approve Ordinance No. 12, Series of 2012 upon second reading. ATTACHMENTS: 2012 Building Code Memo Ordinance No. 12, Series of 2012 10/16/2012 To: Vail Town Council From: Community Development Department Vail Fire and Emergency Services Department Date: October 16, 2012 Subject: Ordinance No. 12, Series of 2012 – adopting the 2012 International Building Codes as amended by the Town of Vail Building and Fire Appeals Board I. SUMMARY Ordinance No. 12, Series of 2012, establishes the 2012 International Building Codes as amended by the Town of Vail Building and Fire Appeals Board as the Building Codes of the Town of Vail. Ordinance No. 12, Series of 2012 was approved as presented by the Vail Town Council on first reading on October 2, 2012, with a 5-1-0 (Moffet opposed) vote. At the October 2nd meeting the Vail Town Council asked that modifications be made to the Vail Fire and Emergency Services Installation Standards that will provide greater clarity in its administration. As this is a modification to a standard and not a change to the Vail Town Code there has been no modification to Ordinance No. 12, Series of 2012. Vail Fire and Emergency Services Department and the Community Development Department have revised this standard to address the change requested by the Vail Town Council. The Building and Fire Appeals Board reviewed proposed changes to the Fire Sprinkler Installation Standards on October 11, 2012. Upon the Building and Fire Appeals Board approval a revised Vail Fire and Emergency Services Installation Standards will be effective immediately. II. BACKGROUND In order to continue to be a premier resort community there is a need to maintain a current set of building codes that safeguard the public health and safety. The comprehensive set of codes proposed will establish minimum regulations for the design and installation of building systems through requirements emphasizing performance. The building codes are updated every three years after an extensive code development processing in which all interested and affected parties may participate. This allows for 10/16/2012 Town of Vail Page 2 the codes to stay current with laws and technology that affect the construction industry. Areas most notably changed in this code cycle is within the International Energy Conservation Code which provides an additional 15% overall efficiency in buildings. The Building and Fire Appeals Board has held public hearings monthly over the last nine months reviewing the changes from the previously adopted building codes and amendments to the 2012 Building codes for the purpose of recommending the adoption of the 2012 Building Codes by the Vail Town Council. The Board has eliminated many of the amendments in the towns current building code that are know found within the body of the building code or out of date with current technology. The Board has also added provisions that address construction practices that are unique to our community. Public input has been a key factor in these changes. III. ACTION REQUESTED OF THE VAIL TOWN COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 12, Series of 2012 on second reading. IV. STAFF RECOMMENDATION On September 24, 2012 the Building Fire and Appeals Board unanimously approved Ordinance No. 12, Series of 2012 for consideration by the Vail Town Council. The Community Development Department and Town of Vail Fire Department are in support of this recommendation to the Vail Town Council. 10/16/2012 Ordinance No. 12, Series of 2012 1 ORDINANCE NO. 12 SERIES OF 2012 AN ORDINANCE REPEALING AND REENACTING CHAPTER 10-1, BUILDING CODES, VAIL TOWN CODE, ADOPTING BY REFERENCE THE 2012 EDITIONS OF THE INTERNATIONAL BUILDING CODE, INTERNATIONAL RESIDENTIAL CODE, INTERNATIONAL FIRE CODE, INTERNATIONAL MECHANICAL CODE, INTERNATIONAL PLUMBING CODE, INTERNATIONAL FUEL GAS CODE, INTERNATIONAL ENERGY CONSERVATION CODE, INTERNATIONAL PERFORMANCE CODE, 2011 EDITION OF THE NATIONAL ELECTRICAL CODE, 1997 EDITION OF THE UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS AND WITH REGARD TO THE ABOVE-DESCRIBED CODES, ADOPTING CERTAIN APPENDICES, SETTING FORTH CERTAIN AMENDMENTS THERETO, 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, the 2009 International Building Code currently adopted by the Town of Vail has been replaced and requiring use of the 2009 International Building Code causes new buildings to meet out of date standards that limit their compatibility with technological advancements; and WHEREAS, the 2012 Editions of the International Building Code, the International Residential Code, the International Fire Code, the International Mechanical Code, the International Plumbing Code, the International Fuel Gas Code, the International Energy Conservation Code, the International Performance Code, the 1997 Edition of the Uniform Code for the Abatement of Dangerous Buildings and the 2011 Edition of the National Electric Code have been published; and WHEREAS, the Building and Fire Code Appeals Board of the Town of Vail has recommended adoption of the Building Codes as set forth in this ordinance and has submitted its recommendation of approval to the Vail Town Council; and WHEREAS, the Vail Town Council finds that the proposed repealing and reenacting Chapter 10-1, Building Codes, further the development objectives of the Town of Vail; and WHEREAS, the 2011 edition of the National Electrical Code is required by the State of Colorado; and 10/16/2012 Ordinance No. 12, Series of 2012 2 WHEREAS, by adopting the 2012 Editions of the International Building Codes the Town of Vail will establish the most current standards for the removal of barriers for person with disabilities; and WHEREAS, the Vail Town Council finds that the repealing and reenacting Chapter 10-1, Building Codes, promote the health, safety, and general welfare of the Town of Vail and promote the coordinated and harmonious development of the Town of Vail 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. Chapter 10-1, Building Codes, Vail Town Code, is hereby repealed and reenacted to read as follows: CHAPTER 1 BUILDING CODES SECTION: 10-1-1: Preamble 10-1-2: Codes Adopted By Reference 10-1-3: Amendments to International Building Code 10-1-4: Amendments to International Residential Code 10-1-5: Amendments to International Fire Code 10-1-6: Amendments to International Mechanical Code 10-1-7: Amendments to International Plumbing Code 10-1-8: Amendments to International Fuel Gas Code 10-1-9 Amendments to the International Energy Conservation Code 10-1-10 Amendments to the Uniform Code for the Abatement of Dangerous Buildings 10-1-11: Copies of Codes Available 10-1-12: Penalties 10-1-1: PREAMBLE: The Charter of the Town of Vail and the statutes of the State of Colorado provide that standard codes may be adopted by reference with amendments and the Town of Vail wishes to adopt the 2012 editions of the International Building Code, the International Residential Code, the International Fire Code, the International Mechanical Code, the International Plumbing Code, the International Fuel Gas Code, the International Energy Conservation Code, the International Performance Code, 1997 edition of the Uniform Code for the Abatement of Dangerous Buildings and the 2011 edition of the National Electric Code. 10/16/2012 Ordinance No. 12, Series of 2012 3 10-1-2: CODES ADOPTED BY REFERENCE: A. Building Code: The International Building Code, 2012 Edition including Appendix Chapters B, C, E, G, J and K, and the International Residential Code, 2012 Edition including Appendix Chapters F and G are hereby adopted by reference. The International Building Code, 2012 Edition and the International Residential Code, 2012 Edition are published by the International Code Council, 4051 West Flossmoor Road, Country Club Hills, Il 60478-5795. B. Fire Code: The International Fire Code, 2012 Edition including Appendix Chapters A, B, C, D, E, G, H and J as amended is hereby adopted by reference. The International Fire Code, 2012 Edition is published by the International Code Council, 4051 West Flossmoor Road, Country Club Hills, Il 60478-5795. C. Mechanical Code: The International Mechanical Code, 2012 Edition is hereby adopted by reference. The International Mechanical Code, 2012 Edition is published by the International Code Council, 4051 West Flossmoor Road, Country Club Hills, Il 60478-5795. D. Plumbing Code: The International Plumbing Code, 2012 Edition is hereby adopted by reference. The International Plumbing Code, 2012 Edition is published by the International Code Council, 4051 Flossmoor Road, Country Club Hills, Il 60478- 5795. E. International Fuel Gas Code: The International Fuel Gas Code, 2012 Edition is hereby adopted by reference. The International Fuel Gas Code, 2012 Edition is published by the International Code Council, 4051 Flossmoor Road, Country Club Hills, Il 60478-5795. F. Energy Code. The International Energy Conservation Code, 2012 Edition is hereby adopted by reference. The International Energy Conservation Code, 2012 Edition is published by the International Code Council, 4051 Flossmoor Road, Country Club Hills, Il 60478-5705. G. Electrical Code: The National Electrical Code, 2011 Edition is hereby adopted by reference. The National Electrical Code, 2011 Edition is published by the National Fire Protection Association Inc., 1 Batterymarch Park, Quincy, MA 02269. H. Performance Code: The International Performance Code, 2012 Edition is hereby adopted by reference. The International Performance Code, 2012 Edition is published by the International Code Council, 4051 W est Flossmoor Road, Country Club Hills, Il 60478-5795. 10/16/2012 Ordinance No. 12, Series of 2012 4 I. Abatement Code: The Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition, is hereby adopted by reference. The Uniform Code for the Abatement of Dangerous Buildings is published by the International Code Council, 4051 West Flossmoor Road, Country Club Hills, Il 60478-5795. 10-1-3: AMENDMENTS TO INTERNATIONAL BUILDING CODE: The following amendments are hereby made to the International Building Code, 2012 Edition: SECTION 101.1 – TITLE: Title is amended as follows: These regulations shall be known as the Building Code of The Town of Vail, hereinafter referred to as “this code.” SECTION 101.4 – REFERENCED CODES: Section 101.4, Referenced Codes, is hereby amended to read as follows: The other codes listed in 101.4.1 through 101.4.7 and referenced elsewhere in this code shall not be considered part of this code. SECTION 105.1.1 – ANNUAL PERMIT: Delete section in its entirety. SECTION 105.2 – WORK EXEMPT FROM PERMIT: Section 105.2, Work exempt from permit, is hereby amended as follows: Item 2: Fences not over 6 feet. Note: Fences required per IBC section 3109 are not exempt from a permit. SECTION 1503.7- SNOWGUARDS/ RETENTION: With the addition of this new section to read as follows: The design of snow retention devices/snow guards shall be designed by a licensed engineer or as determined by the Building Official. SECTION 1505.6 – FIRE RETARDANT TREATED WOOD SHINGLES AND SHAKES: This section is deleted in its entirety and shall be replaced with the following text: All roof coverings and roof assemblies shall comply with Section 14-10-5F, which requires Class A roof coverings or Class A roof assemblies for all structures within the Town of Vail. Wood shingles and shake coverings or assemblies are prohibited except where exempted for replacement or repair per Section 14-10-5f, Vail Town Code. SECTION 1510.4 – ROOF COVERING: This section is amended to read as follows: Existing wood shingles or wood shakes shall be removed prior to installation of a new roof covering. SECTION 1510.7- SNOW RETENTION. With the addition of this new section to read as follows: Roofs shall be designed to prevent accumulations of snow from shedding onto exterior balconies, decks, pedestrian and vehicular exits from buildings, stairways, 10/16/2012 Ordinance No. 12, Series of 2012 5 sidewalks, streets, alleys, areas directly above or in front of gas and electrical utility meters, or adjacent properties. The design of snow retention devices shall be provided by a licensed structural engineer or as determined by the Building Official. Exception: Roof areas with a horizontal dimension of no more than 48 inches that will not receive snow shedding from a higher roof. The horizontal projection shall be measured perpendicular to the exterior wall line from the edge of the roof or eave to any intersecting vertical surface. SECTION 1603.2-BOULDER WALLS: With the addition of this new section to read as follows: Boulder or rock walls more than four feet tall shall be designed by a licensed engineer. SECTION 1604.1.1- HAZARD AREA REQUIREMENTS: With the addition of this new section to read as follows: All new construction and additions to existing structures located in mapped debris flow, rock fall, avalanche and flood hazards shall be designed as required by Chapter 12-21, Hazard Regulations. SECTION 1608.2- GROUND SNOW LOADS: This section is to be deleted in its entirety and shall be replaced with the following text: Designs for roof snow loads shall be as follows: Roof pitches of less than 4:12 shall be designed to carry a one hundred (100) pound per square foot snow load and roof pitches of 4:12 and greater shall be designed to carry an eighty (80) pound per square foot snow load. There is no allowance for pitch reduction nor is there a requirement to increase loading due to wind, valleys, snow drifting or type of roof covering. Any modification for snow load design shall be accomplished using section 1604.1. SECTION 1608.2.1 - ALTERNATIVE ROOF SYSTEMS: With the addition of this new section to read as follows: Alternative roof systems shall be designed to carry a roof snow load resulting from a ground snow load of one hundred forty five (145) pound per square foot. All provisions of Section 1608 shall apply to the analysis of the roof structure except for reductions for unobstructed slippery surfaces. A licensed engineer shall be responsible for determining increased localized snow loading due to architectural building features. SECTION 1803.2.1- SOILS REPORT: With the addition of this new section to read as follows: Site specific soils and foundation investigation reports shall be prepared by a Registered Soils Engineer for the completion of construction documents. Assumption and open-hole investigations are allowed for additions to an existing building of less than two thousand (2,000) square feet of floor area. TABLE 2902.1- MINIMUM NUMBER OF REQUIRED PLUMBING FIXTURES: This Table is amended read as follows: 10/16/2012 Ordinance No. 12, Series of 2012 6 1. Footnote f is amended as follows: Drinking fountains are not required for an occupant load of 100 or less, or in A-2, B, M occupancies regardless of occupant load. 2. Footnote g is hereby added to read: Service sinks are recommended, but not required in B or M occupancies with an occupant load of 50 or less if a lavatory is provided. SECTION 2406.4.5 GLAZING AND WET SURFACES: Exception amended to read as follows: Exception: Glazing that is more than sixty (60) inches (1524mm) measured horizontally and in a straight line from the water’s edge of a bathtub, shower, hot tub, spa, whirlpool or swimming pool. SECTION 2902.2- SEPARATE FACILITIES: Exception 2 and 3 of this section are amended to read as follows: Exception 2: Separate facilities shall not be required in structures or tenant spaces with a total occupant load including both employees and customers of 30 or less. Exception 3: Separate facilities shall not be required in mercantile occupancies in which the maximum occupant load is 100 or less 10-1-4: AMENDMENTS TO INTERNATIONAL RESIDENTIAL CODE: The following amendments are hereby made to the International Residential Code, 2012 Edition: SECTION 101.1 – TITLE: Title is amended read as follows: These regulations shall be known as the Building Code of The Town of Vail, hereinafter referred to as “this code.” SECTION R102 – APPLICABILITY: Section R102.4, Referenced Codes and Standards, is hereby amended by adding the following text: Reference to other codes such as Plumbing, Mechanical and Electrical shall refer only to the currently adopted code of that type. SECTION R105.2- WORK EXEMPT FROM PERMIT: This section is hereby amended to read as follows: Item 2, Fences not over six (6) feet (2134 mm) high. SECTION R301.2.4- FLOODPLAIN CONSTRUCTION: This section is to be deleted in its entirety and shall be replaced with the following text: Buildings and structures constructed in flood hazard areas are subject to Chapter 12-21, Hazard Regulations, Vail Town Code. SECTION R313.2- ONE AND TWO FAMILY DWELLINGS AUTOMATIC FIRE SYSTEMS: This section is to be deleted in its entirety and replaced with the following 10/16/2012 Ordinance No. 12, Series of 2012 7 text: An automatic residential fire sprinkler system shall be required as determined by the Vail Fire and Emergency Services Criteria for Requirements to Install Fire Sprinkler Systems. SECTION R313.2.1- DESIGN AND INSTALLATION: This section is to be deleted in its entirety and replaced with the following text: Automatic residential fire sprinkler systems shall be designed and installed in accordance to the International Fire Code, 2012 Edition, Section 903 and Vail Fire and Emergency Services Fire Sprinkler Installation Standards. SECTIONS R1004.3 and R1005.2- DECORATIVE SHROUDS: These sections are to be amended to add Exception: Decorative shrouds that are not listed and labeled for use with the specific factory built fireplace shall be permitted when the decorative shroud complies with the requirements of Section R1003.9.1. CHAPTER 4 thru CHAPTER 7- These chapters are to be deleted in their entirety and replaced with the following text: All structural elements and design shall conform to International Building Code as amended by the Town of Vail. Exception: Section R612 shall still apply. CHAPTER 8- Sections R802 thru R804 are to be deleted in their entirety.. CHAPTER 9- This chapter is to be deleted in its entirety and replaced with the following text entirety and amend to read: Roofing systems shall conform to the International Building Code as amended by the Town of Vail. CHAPTER 11 thru CHAPTER 43- These Chapters are to be deleted in their entirety and replaced with the following text: Reference to other codes such as Plumbing, Mechanical, Energy, and Electrical respectively. 10-1-5: AMENDMENTS TO THE INTERNATIONAL FIRE CODE: The following amendments are hereby made to the International Fire Code, 2012 Edition: SECTION 101.1 – TITLE: Title is hereby amended as follows: These regulations shall be known as the Fire Code of the Town of Vail, hereinafter referred to as “this code.” SECTION 102.7- REFERENCED CODES AND STANDARDS: This section is to be deleted in its entirety and shall be replaced with the following text: The codes and standards referenced in this code shall be those listed in Chapter 80 and Vail Fire and Emergency Services Standards as approved by the Vail Fire Code Official and as 10/16/2012 Ordinance No. 12, Series of 2012 8 published on the Town of Vail web site at www.vailgov.com. Such codes and standards shall be considered part of the requirements of this code to the prescribed extent of each such reference. Where codes and standards are adopted by other governmental jurisdictions, and where differences occur between provisions of this code and the adopted standards, the more stringent of the two shall apply. Fire sprinkler standards, fire alarm standards, commissioning standards and related standards shall be published and available for review. SECTION 202 -DEFINITIONS: Amend to add this new section to read as follows: Tampering: Any alteration, damage, misuse or deactivation and/or any similar actions that render inoperable any fire protection, fire detection or life safety system without express written approval of Vail Fire and Emergency Services. [See Section 901.8] SECTION 308.1.4 -OPEN-FLAME COOKING DEVICES: Amend this section to add the following language as follows: Exception 4. Listed or AIG certified natural gas appliances. SECTION 312.4- ELECTRIC METERS, GAS METERS AND PIPING: Amend to add this new section to read as follows: Above ground electric meters, gas meters, regulators and piping shall be protected from damage by ice or snow and if exposed to vehicular damage due to proximity to alleys, driveways or parking areas shall be protected from such potential damage in accordance with section 312.1 of this code SECTION 503.1- Fire Apparatus Access Roads-WHERE REQUIRED: Amend this section to add the following language as follows: Refer to Title 14, Development Standards, Vail Town Code for additional requirements. SECTION 507.5.7- MOUNTAIN HYDRANTS: Amend to add this new section to read as follows: Fire hydrants are considered “Mountain Hydrants” when they are placed such that the center point of the discharge outlet is not less than thirty-six (36) inches above finish grade. New fire hydrants and fire hydrants replaced or relocated in locations other than in a heated sidewalk or in immediate proximity thereto, such that snow accumulation is likely shall be placed as Mountain Hydrants. SECTION 510.1- EMERGENCY RESPONDER RADIO COVERAGE IN BUILDINGS: Amend this section to add the following language as follows: See Chapter 10-3, In- Buildings Public Safety Radio System Coverage, Vail Town Code, for additional requirements. SECTION 901.6.1- STANDARDS: This section is to be deleted in its entirety and shall be replaced with the following text: Fire protection systems shall be installed, inspected, tested and maintained in accordance with the referenced standards listed in Table 10/16/2012 Ordinance No. 12, Series of 2012 9 901.6.1 and in accordance with Vail Fire and Emergency Services Fire Sprinkler Installation Standards. SECTION 901.11 LIFE SAFETY REPORTS: Amend to add this new section to read as follows: A Life Safety Report shall be approved by the Vail Fire Code Official prior to issuance of a building permit for all buildings fifty-five (55) feet or greater in height, measured from fire department access to the highest occupied floor level, inaccessible buildings or where the building is employing a performance based design. Elements of the Life Safety Report shall include, but are not limited to: exiting, travel distances, smoke control, smoke management, fire alarm and detection, fire sprinkler systems, standpipe systems, fire pumps, and other elements directly related to fire and life safety. SECTION 902 -DEFINITIONS: Amend this section to add the following language as follows: False Alarms: See Title 4, Business and License Regulations, Vail Town Code. SECTION 903.2.10- GROUP S-2 ENCLOSED PARKING GARAGES: Delete the following: Exception: Enclosed parking garages located beneath Group R-3 occupancies. SECTION 903.3.1.3- Delete and amend to: NFPA 13R SINGLE FAMILY / DUPLEX SPRINKLER SYSTEMS: This section is to be deleted in its entirety and shall be replaced with: the following text; Where a fire sprinkler system is required by this code, automatic sprinkler systems shall be installed in a one and two-family dwelling or townhouse shall be installed throughout in accordance with NFPA 13R and Vail Fire and Emergency Services Installation Standards. SECTION 903.3.5.1.1- LIMITED AREA SPRINKLER SYSTEMS: Delete section in its entirety. SECTION 903.4- SPRINKLER SYSTEM SUPERVISION AND ALARMS: This section is hereby amended as follows: Delete Exceptions 1 through 7. APPENDIX B - FIRE FLOW REQUIREMENTS: Amend this section to read as follows: The maximum reduction for sprinkled buildings shall be not greater than 50%. 10/16/2012 Ordinance No. 12, Series of 2012 10 APPENDIX D- FIRE APPARATUS ACCESS ROADS: Amend this section by adding the following language as follows: This section is for reference only but may be used in performance based design. Refer to Title 14, Development Standards, Vail Town Code. APPENDIX G- CYROGENICS: Weight and Volume Tables: Amend this section to add the following language as follows: Use as reference only. 10-1-7: AMENDMENTS TO THE INTERNATIONAL PLUMBING CODE: The following amendments are hereby made to the International Plumbing Code, 2012 Edition: SECTION 101.1- TITLE: This section is hereby amended to read as follows: These regulations shall be known as the Plumbing Code of the Town of Vail hereinafter referred to as “this code.” SECTION 101.2- SCOPE: This section is hereby amended to read as follows: Delete exception in its entirety. 10-1-8 AMENDMENTS TO THE INTERNATIONAL FUEL GAS CODE: The following amendments are hereby made to the International Fuel Gas Code, 2012 Edition: SECTION 101.1- TITLE: This section is hereby amended to read as follows: These regulations shall be known as the Fuel Gas Code of the Town of Vail, hereinafter referred to as “this code”. SECTION 101.2- SCOPE: This section is hereby amended to read as follows: Delete Exceptions in its entirety. SECTION 303.3- PROHIBITED LOCATIONS: This section is hereby amended to read as follows: Delete Exception 2, 3 and 4 in their entirety. SECTION 304.11- COMBUSTION AIR DUCTS: This section is hereby amended to read as follows: Item 8. Combustion air intake openings located on the exterior of a building shall be at least sixty (60) inches above the adjoining ground or at least thirty-six (36) inches above the roof. SECTION 304.1- GENERAL: This section is hereby amended to include the following text: New construction shall be considered unusually tight construction as defined by this code. 10/16/2012 Ordinance No. 12, Series of 2012 11 SECTION 406.4.1 -TEST PRESSURE: This section is hereby amended to read as follows: The test shall include an air, carbon dioxide or nitrogen pressure test at which time the gas piping shall withstand a pressure of not less than 10 Pressure Per Square Inch Gauge (69 kPa). For welded pipe and for piping carrying gas pressure exceeding fourteen (14) inch water column, the test shall be at least sixty (60) Pressure Per Square Inch Gauge (414 kPa). SECTION 406.4.2- TEST DURATION: This section is hereby amended to read as follows: Test duration shall not be less than fifteen (15) minutes for threaded pipe. For welded pipe and piping carrying gas pressure exceeding fourteen (14) inch water column the duration shall not be less than thirty (30) minutes. SECTION 409.7- NATURAL GAS EMERGENCY GENERATORS: With the addition of this new section to read as follows: Gas emergency generators shall have a dedicated gas line connected on the supply side of the main gas shutoff valve and marked as supplying an emergency generator per NFPA 110.7.9.7 & 7.9.8. This valve shall have a monitored tamper switch. SECTION 411.4- FIRE PITS: With the addition of this new section to read as follows: Fire pits serving any residential units require automatic shut-off controls with a maximum timer of thirty (30) minutes and may only be served by a three quarter inch (¾”) gas pipe. SECTION 501.8 -EQUIPMENT NOT REQUIRED TO BE VENTED: This section is hereby amended to read as follows: Delete item 8 and 10. SECTION 503.6.4- GAS VENT TERMINATIONS: This section is amended with the addition of the following text: Item 8. Gas appliance vent terminations located on the exterior of a building shall be at least sixty (60) inches above the adjoining ground or at least thirty-six (36) inches above the roof. SECTION 603- LOG LIGHTERS: This section is hereby amended with the addition of the following text: Log lighters are prohibited in the Town of Vail. SECTION 621.2- PROHIBITED USES: The section is herby amended with the addition of the following text: Log lighters are prohibited in the Town of Vail. 10-1-9: AMENDMENTS TO THE INTERNATIONAL ENERGY CONSERVATION CODE: The following amendments are hereby made to the International Energy Conservation Code, 2012 Edition. 10/16/2012 Ordinance No. 12, Series of 2012 12 SECTION 101.1- TITLE: This section is hereby amended to read as follows: These regulations shall be known as the Energy Conservation Code of the Town of Vail hereinafter referred to as “this code.” TABLE 402.1.1- INSULATION AND FENESTRATION REQUIREMENTS BY COMPONENTS: This table to be revised by the addition of Footnote j to read as follows; The fenestration U- factor for the Town of Vail shall be 0.30 for all new one and two family dwelling units and amend footnote h to read as follows: Cavity plus continuous insulation shall not be required. SECTION 402.4.2.1 TESTING OPTION: This section is hereby amended with the addition of the following text: The testing agency shall be approved by the Building Official. SECTION 403.9.3- POOL COVERS: The Exception to this section is hereby deleted in its entirety. SECTION 403.6- EQUIPMENT SIZING (MANDATORY): This section is hereby amended to read as follows: Heating equipment shall be sized in accordance with ASHRAE, 2004 Edition, Chapter 17 for residential occupancies and Chapter 18 for nonresidential occupancies. All gas fired boilers and furnaces shall have a minimum efficiency of ninety-two percent (92%) AFUE. 10-1-10: AMENDMENTS TO THE UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS, 1997 EDITION: The following amendments are hereby made to the Uniform Code for the Abatement of Dangerous Buildings 1997 Edition: SECTION 301- GENERAL: This section is herby amended to read as follows: For the purpose of this code, certain terms, phrases, words, and their derivatives shall be construed as specified in either this chapter or as specified in the Building Code. BUILDING CODE: is the International Building Code as adopted and amended by the Town of Vail. DANGEROUS BUILDING: is any building or structure deemed to be dangerous under the provisions of Section 302 of this code. 10-1-11: COPIES OF CODES AVAILABLE: Copies of all the codes adopted by this Chapter and all amendments thereto shall be available for inspection at the office of the Town Clerk. 10/16/2012 Ordinance No. 12, Series of 2012 13 10-1-12: PENALTIES: A. Any person who violates any of the provisions of the Codes adopted by this Chapter or fails to comply therewith or who violates or fails to comply with any order made thereunder or who builds in violation of any detailed statements, specifications or plans submitted and approved thereunder or any certificate or permit issued thereunder or within the time fixed therein shall be guilty of a misdemeanor and subject to penalty as provided in Section 1-4-1 of this Code. The imposition of a penalty for any violation shall not excuse the violation or permit it to continue and all such persons shall be required to correct or remedy such violation or defects within a reasonable time and each day that the prohibited conditions are maintained shall constitute a separate offense. B. The Town of Vail may maintain an action for damages, declaratory relief, specific performance, injunction, or any other appropriate relief in the District Court in and for the County of Eagle for any violation of any of the provisions of this Chapter. (1997 Code: Ord. 25(1991) § Section 2. The Codes adopted by this Ordinance shall be effective for all Building Permit Applications received by the Town of Vail, Community Development Department, Building Safety and Inspection Services on or after January 1, 2013. 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 10/16/2012 Ordinance No. 12, Series of 2012 14 part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 2nd day of October, 2012 and a public hearing for second reading of this Ordinance set for the 16th day of October, 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 INTRODUCED, READ, ADOPTED AND ENACTED ON SECOND READING AND ORDERED PUBLISHED IN FULL this 16th day of October, 2012. _________________________ Andrew P. Daly, Mayor ATTEST: ________________________ Lorelei Donaldson, Town Clerk 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: First reading of Ordinance No. 13, Series of 2012, an ordinance amending the construction sign provisions and repealing the temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, and setting forth details in regard thereto. (PEC120031) PRESENTER(S): Bill Gibson, Community Development Department ACTION REQUESTED OF COUNCIL: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 13, Series of 2012, on first reading. BACKGROUND: On September 24, 2012, the Planning and Environmental Commission forwarded the Vail Town Council a recommendation of approval, with modifications, for prescribed regulation amendments to Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11-3-3, Prescribed Regulations Amendment, Vail Town Code, to allow for amendments to the construction sign regulations, and setting forth details in regard thereto. (PEC120031) STAFF RECOMMENDATION: The Planning and Environmental Commission recommends approval of Ordinance No. 13, Series of 2012, on first reading. ATTACHMENTS: memorandum Attachment A: Ordinance No. 13, Series of 2012 Attachment B: PEC memorandum Attachment C: PEC minutes (excerpt) 10/16/2012 TO: Vail Town Council FROM: Community Development Department DATE: October 16, 2012 SUBJECT: Ordinance No. 13, Series of 2012, an ordinance amending the construction sign provisions and repealing the temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, and setting forth details in regard thereto. (PEC120031) Applicant: Town of Vail Planner: Bill Gibson I. SUMMARY First reading of Ordinance No. 13, Series of 2012, an ordinance amending the construction sign provisions and repealing the temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, and setting forth details in regard thereto. On September 24, 2012, Planning and Environmental Commission forwarded a recommendation of approval, with modifications, to the Vail Town Council. II. DESCRIPTION OF THE REQUEST The temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, were associated with the Town of Vail sponsored “Vail’s Billion Dollar Renewal” communications program which began in 2005 and has since been discontinued. The temporary site development sign provisions of the Sign Regulations are no longer applicable or relevant. The applicant, the Town of Vail, is therefore proposing to repeal the provisions of Section 11-7-6, Temporary Site Development Signs, Vail Town Code. The applicant, the Town of Vail, is also proposing amendments to the construction sign provisions of Title 11, Sign Regulations, Vail Town Code. The proposed amendments will allow the following additional content to be displayed on construction signs: • One business logo of the emergency contact. • Brief factual description of the construction project. • One website address. • One quick response (QR) code. • An artist rendering of the finished construction project. • Proposed construction completion date. 10/16/2012 Town of Vail Page 2 The applicant is also proposing to clarify the sign type, design, and landscaping requirements for construction signs which are not addressed by the current sign regulations. On September 24, 2012, Planning and Environmental Commission forwarded a recommendation of approval to the Vail Town Council for the proposed amendments by a vote of 6-0-0 with the following modification: “The applicant shall modify Section 11-7-6a-1 to allow a maximum sign area of 8 square feet in all residential zone districts. Construction signs in all other zone districts will continue to be allowed a maximum sign area of 20 square feet.” The current Sign Regulations allow any construction sign to be a maximum of 20 square feet in area, regardless of which zone district the sign is located. III. ACTION REQUESTED OF THE COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 13, Series of 2012, on first reading. IV. RECOMMENDATION On September 24, 2012, the Planning and Environmental Commission forwarded a recommendation of approval to the Vail Town Council for the proposed amendments. Should the Vail Town Council choose to approve this ordinance on first reading; the Planning and Environmental Commission recommends the Council pass the following motion: “The Vail Town Council approves Ordinance No. 13, Series of 2012, an ordinance amending the construction sign provisions and repealing the temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, and setting forth details in regard thereto.” Should the Vail Town Council choose to approve this ordinance, the Planning and Environmental Commission recommends the Vail Town Council makes the following findings: “Based upon the review of the criteria outlined in Section V of the September 24, 2012, Staff memorandum and the evidence and testimony presented, the Vail Town Council finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the town; and 2. That the amendment furthers the general and specific purposes of the sign regulations; and 10/16/2012 Town of Vail Page 3 3. That the amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” VI. ATTACHMENTS A. Ordinance No. 13, Series of 2012 B. Planning and Environmental Commission Memorandum Dated 9/24/12 C. Planning and Environmental Commission Meeting Results from 9/24/12 10/16/2012 Ordinance No. 13, Series 2012 - 1 - ORDINANCE NO. 13 SERIES OF 2012 AN ORDINANCE AMENDING THE CONSTRUCTION SIGN PROVISIONS AND REPEALING THE TEMPORARY SITE DEVELOPMENT SIGN PROVISIONS OF TITLE 11, SIGN REGULATIONS, VAIL TOWN CODE, 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 Town duly existing under the Constitution and laws of the State of Colorado and its home rule charter (the “Charter”); WHEREAS, the members of the Town Council of the Town (the “Council”) have been duly elected and qualified; WHEREAS, Section 11-3-3, Prescribed Regulation Amendment, Vail Town Code, sets forth the procedures for amending the Town’s Sign Regulations; and, WHEREAS, the purpose of these amendments is to allow additional content to be displayed on construction signs; WHEREAS, the purpose of these amendments is to clarify the sign type, design, and landscaping requirements for construction signs; WHEREAS, the temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, were associated with the Town of Vail sponsored “Vail’s Billion Dollar Renewal” communications program which began in 2005 and has since been discontinued. Therefore, the temporary site development signs provisions of Title 11, Sign Regulations, Vail Town Code, are no longer applicable or relevant; WHEREAS, the purpose of these amendments is to clarify the Sign Regulations by repealing Section 11-7-6, Temporary Site Development Signs, Vail Town Code; WHEREAS, on September 24, 2012, the Town of Vail Planning and Environmental Commission held a public hearing on the application to amend the construction sign and temporary site development sign provisions of Title 11, Sign Regulations, Vail Town Code, in accordance with the provisions of the Vail Town Code; and, WHEREAS, on September 24, 2012, the Town of Vail Planning and Environmental Commission forwarded a recommendation of approval, with modifications, for these Sign Regulation amendments to the Vail Town Council; and, WHEREAS, the Vail Town Council finds and determines that these amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the town; 10/16/2012 Ordinance No. 13, Series 2012 - 2 - WHEREAS, the Vail Town Council finds and determines that these amendments furthers the general and specific purposes of the sign regulations; and WHEREAS, the Vail Town Council finds and determines that these amendments 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. NOW, THEREFORE, BE IT ORDAINED, BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. Chapter 11-7, Other Signs, Vail Town Code, shall be amended as follows (text to be deleted is in strikethrough, text that is to be added is bold, and sections of text that are not amended have been omitted): 11-7-6: TEMPORARY SITE DEVELOPMENT SIGNS: A. Description: A sign permitted to identify and describe a project under construction and the associated hazardous conditions during large scale development periods as determined by the town council. 1. Size: Any site development sign shall not exceed forty two inches by fifty three inches (42" x 53") in dimension. 2. Number: One sign per building frontage upon a site. 3. Location: Signs shall be mounted on construction fencing. In the absence of construction fencing, a two (2) sided sign mounted on a four by four inch (4 x 4") post may be placed within a landscaped planter. 4. Lighting: Not permitted. 5. Special Provisions: Temporary site development signs shall be removed prior to the issuance of a temporary certificate of occupancy. 6. Content: No content other than listed below shall be included on a temporary site development sign: a. Temporary site development signs shall include the following information: (1) Project name. (2) Building permit number. (3) Contact information. Only one name, one phone number and one e-mail address shall be permitted. (4) Physical address. 10/16/2012 Ordinance No. 13, Series 2012 - 3 - b. Temporary site development signs may include the following information: (1) Staff approved development slogans. (2) Brief factual description of the project. (3) Website address. (4) Artist rendering. (5) Proposed completion date. 11-7-13 6: CONSTRUCTION SIGNS: A. Description: A sign permitted to identify and describe a project under construction and the associated hazardous conditions. 1. Size Area: In all residential zone districts, the area of any construction sign shall not exceed eight (8) square feet. In all other zone districts, the area of any construction sign shall not exceed twenty (20) square feet, with a horizontal dimension no greater than ten feet (10'). 2. Height: The top of a construction sign shall be no higher than eight feet (8') from grade. 3. Number: One sign per construction site. 4. Location: A wall mounted sign shall be placed parallel to the exterior wall adjacent to the street or major pedestrianway which the building abuts and shall be subject to design review. If no wall exists for sign to be placed, the sign may be mounted on the construction fence. Construction signs shall be mounted parallel and flush to the building wall or construction fence adjacent to the street or major pedestrianway to which the construction site abuts. 5. Lighting: Not permitted. 6. Type of Sign: Construction signs shall not be freestanding signs. 7. Design: Subject to design review. 8. Landscaping: Not applicable. 6. Special Provisions: Construction signs shall be removed prior to the issuance of a temporary certificate of occupancy. 9. Display Duration: Construction signs may be displayed upon issuance of the associated building permit(s) and shall be removed prior to the issuance of a certificate of occupancy. 7. Content: Only the following text shall be included on construction signs with no other content permitted: 10/16/2012 Ordinance No. 13, Series 2012 - 4 - a. Project name. b. Building permit number. c. Contact information. Only one name, one phone number and one e-mail address shall be permitted. d. Physical address. 10. Content: No content other than listed below shall be included on a construction sign: a. Construction signs shall include the following information: (1) Physical address of the construction site. (2) Building permit number(s). (3) Construction project name(s). (4) One emergency contact, including one individual and business name, one telephone number and one e-mail address. b. Construction signs may include the following additional information: (1) One business logo of the emergency contact. (2) Brief factual description of the construction project. (3) One website address. (4) One quick response (QR) code. (4) An artist rendering of the finished construction project. (5) Proposed construction completion date. 11. Special Provisions: Signs identifying dangerous or hazardous conditions associated with a construction site are exempt from design review as further regulated by Section 11-9-1, Exempt Signs, of this title. 11-7-14 13: Promotional Event Posters: 11-7-15 14: Public Parking And Loading Signs For Private Property: 11-7-16 15: Ski Base Area Signs: 11-7-17 16: Informational And Directional Sign For Public Parking On Private Property: 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. 10/16/2012 Ordinance No. 13, Series 2012 - 5 - 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 16th day of October, 2012, and a public hearing for second reading of this Ordinance set for the 6th day of November, 2012, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. ____________________________ Andrew P. Daly, Mayor ATTEST: ____________________________ Lorelei Donaldson, Town Clerk 10/16/2012 TO: Planning and Environmental Commission FROM: Community Development Department DATE: September 24, 2012 SUBJECT: A request for a recommendation to the Vail Town Council on prescribed regulation amendments to Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11-3-3, Prescribed Regulations Amendment, Vail Town Code, to allow for amendments to the construction sign regulations, and setting forth details in regard thereto. (PEC120031) Applicant: Town of Vail Planner: Bill Gibson I. SUMMARY A request for a recommendation to the Vail Town Council on prescribed regulation amendments to Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11-3-3, Prescribed Regulations Amendment, Vail Town Code, to allow for amendments to the construction sign regulations. The proposed amendments will allow for additional content to be displayed on general construction signs including: x One business logo of the emergency contact. x Brief factual description of the construction project. x One website address. x One quick response (QR) code. x An artist rendering of the finished construction project. x Proposed construction completion date. The applicant is also proposing to clarify the sign type, design, and landscaping requirements for construction signs which are not addressed by the current sign regulations. For further clarification of the sign regulations, the applicant is also proposing to repeal Section 11-7-6, Temporary Site Development Signs, Vail Town Code. The temporary site development sign regulations were associated with the Town sponsored “Vail’s Billion Dollar Renewal” communications program which began in 2005 and has since been discontinued. 10/16/2012 Town of Vail Page 2 The Community Development Department recommends that the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the proposed amendments based upon the findings noted in Section VI of this memorandum. II. DESCRIPTION OF THE REQUEST The applicant is proposing the following amendments to Title 11, Sign Regulations, Vail Town Code (text to be deleted is in strikethrough, text that is to be added is bold, and sections of text that are not amended have been omitted): 11-7-6: TEMPORARY SITE DEVELOPMENT SIGNS: A. Description: A sign permitted to identify and describe a project under construction and the associated hazardous conditions during large scale development periods as determined by the town council. 1. Size: Any site development sign shall not exceed forty two inches by fifty three inches (42" x 53") in dimension. 2. Number: One sign per building frontage upon a site. 3. Location: Signs shall be mounted on construction fencing. In the absence of construction fencing, a two (2) sided sign mounted on a four by four inch (4 x 4") post may be placed within a landscaped planter. 4. Lighting: Not permitted. 5. Special Provisions: Temporary site development signs shall be removed prior to the issuance of a temporary certificate of occupancy. 6. Content: No content other than listed below shall be included on a temporary site development sign: a. Temporary site development signs shall include the following information: (1) Project name. (2) Building permit number. (3) Contact information. Only one name, one phone number and one e-mail address shall be permitted. (4) Physical address. b. Temporary site development signs may include the following information: (1) Staff approved development slogans. (2) Brief factual description of the project. 10/16/2012 Town of Vail Page 3 (3) Website address. (4) Artist rendering. (5) Proposed completion date. 11-7-13 6: CONSTRUCTION SIGNS: A. Description: A sign permitted to identify and describe a project under construction and the associated hazardous conditions. 1. Size Area: Any construction sign shall not exceed twenty (20) square feet, with a horizontal dimension no greater than ten feet (10'). 2. Height: The top of a construction sign shall be no higher than eight feet (8') from grade. 3. Number: One sign per construction site. 4. Location: A wall mounted sign shall be placed parallel to the exterior wall adjacent to the street or major pedestrianway which the building abuts and shall be subject to design review. If no wall exists for sign to be placed, the sign may be mounted on the construction fence. Construction signs shall be mounted parallel and flush to the building wall or construction fence adjacent to the street or major pedestrianway to which the construction site abuts. 5. Lighting: Not permitted. 6. Type of Sign: Construction signs shall not be freestanding signs. 7. Design: Subject to design review. 8. Landscaping: Not applicable. 6. Special Provisions: Construction signs shall be removed prior to the issuance of a temporary certificate of occupancy. 9. Display Duration: Construction signs may be displayed upon issuance of the associated building permit(s) and shall be removed prior to the issuance of a certificate of occupancy. 7. Content: Only the following text shall be included on construction signs with no other content permitted: a. Project name. b. Building permit number. c. Contact information. Only one name, one phone number and one e-mail address shall be permitted. d. Physical address. 10/16/2012 Town of Vail Page 4 10. Content: No content other than listed below shall be included on a construction sign: a. Construction signs shall include the following information: (1) Physical address of the construction site. (2) Building permit number(s). (3) Construction project name(s). (4) One emergency contact, including one individual and business name, one telephone number and one e-mail address. b. Construction signs may include the following additional information: (1) One business logo of the emergency contact. (2) Brief factual description of the construction project. (3) One website address. (4) One quick response (QR) code. (4) An artist rendering of the finished construction project. (5) Proposed construction completion date. 11. Special Provisions: Signs identifying dangerous or hazardous conditions associated with a construction site are exempt from design review as further regulated by Section 11-9-1, Exempt Signs, of this title. 11-7-14 13: Promotional Event Posters: 11-7-15 14: Public Parking And Loading Signs For Private Property: 11-7-16 15: Ski Base Area Signs: 11-7-17 16: Informational And Directional Sign For Public Parking On Private Property: III. BACKGROUND In the mid-2000’s the Town of Vail experienced an unprecedented volume of construction activity with a variety of physical and economic impacts on the Town’s businesses, guests, and residents. The Vail Town Council identified this as a period of large scale development. The Council wished to minimize the negative impacts of that construction activity by allowing temporary signage to direct guests to core area businesses during construction of the Vail Village streetscape, Arrabelle, Vail’s Front Door, and other significant construction projects in the town’s core areas. In May 2005, the Vail Town Council approved Ordinance No. 10, Series of 2005, which allowed “temporary signs, construction fencing, and other temporary improvements within Vail’s commercial core” until April 1, 2008. The Vail Town Council extended these regulations through the adoption of Ordinance No. 4, Series of 2008, and Ordinance No. 8, Series of 2010. These temporary sign regulations expired on April 1, 2011. 10/16/2012 Town of Vail Page 5 In addition to minimizing the impacts of construction projects, the Vail Town Council also wanted to celebrate and market Vail’s “renaissance” associated with this large scale development period. In 2005, the Town of Vail Community Information Office, in cooperation with various other groups, developed and implemented a communications program for “Vail’s Billion Dollar Renewal”. This program included allowing additional construction signage. This additional signage was initially allowed for major redevelopment projects in commercial areas, but was eventually extended to all construction projects town-wide. This additional signage was subject to a pre- determined sign size and layout that included the Billion Dollar Renewal slogan. These signs were allowed more content than general construction signs including a project description, website address, artist rendering, and proposed completion date. The regulation of these Billion Dollar Renewal signs was clarified by the Vail Town Council’s adoption of Ordinance No. 29, Series of 2005, in January 2006. Ordinance No. 29, Series of 2005, defined these signs as “Temporary Site Development Signs” and re-name general construction signs (formerly known as temporary site development signs) as “Construction Sign”. During the Planning and Environmental Commission’s review of that ordinance, the Staff memorandum described the need for the amendments to the Sign Regulations as follows: Excerpt, August 22, 2005, Staff memorandum to the Planning and Environmental Commission: Staff Comment: During Vail's Billion Dollar Renewal, there has been confusion among applicants as to which signs and which regulations apply to particular projects. Staff feels that construction sign and temporary site development sign should be clarified to create two separate terms, one for major development periods, and the other for general construction. We have also chosen to codify the requirements for each of these signs (revamping the Temporary Site Development Sign regulations and creating Construction Sign regs below). In the future, applicants will have a clear understanding of which signs apply to their projects. Staff will also have codified standards from which to regulate. Excerpt, October 5, 2005, Staff memorandum to the Planning and Environmental Commission: Staff Comments: The regulations need to be adjusted to clarify the difference between “Temporary Site Development Signs” and “Construction Signs”. As Temporary Site Development Signs will be linked to major development periods in Vail, such as the Billion Dollar Renewal, the Code needs to reflect the Town Council approved sign program introduced by the Department of Community Development and/or the Department of Public Works. (See attached “Billion Dollar Renewal Sign Program” sheet.) The Billion Dollar Renewal communications program has ended and the commercial core temporary sign regulations of Ordinance No. 8, Series of 2010, have expired. 10/16/2012 Town of Vail Page 6 IV. APPLICABLE REGULATIONS TITLE 11: SIGN REGULATIONS (in part) Chapter 11-2: Purpose A. General Purpose: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the town of Vail and to promote the coordinated and harmonious design and placement of signs in the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of the highest quality. B. Specific Purpose: These regulations are intended to achieve the following specific purposes: 1. To describe and enable the fair and consistent enforcement of signs in the Town of Vail. 2. To encourage the establishment of well designed, creative signs that enhance the unique character of Vail's village atmosphere. 3. To preserve a successful and high quality business environment that is aided by signs that identify, direct, and inform. 4. To aid in providing for the growth of an orderly, safe, beautiful, and viable community. 11-7-6: TEMPORARY SITE DEVELOPMENT SIGNS: A. Description: A sign permitted to identify and describe a project under construction and the associated hazardous conditions during large scale development periods as determined by the town council. 1. Size: Any site development sign shall not exceed forty two inches by fifty three inches (42" x 53") in dimension. 2. Number: One sign per building frontage upon a site. 3. Location: Signs shall be mounted on construction fencing. In the absence of construction fencing, a two (2) sided sign mounted on a four by four inch (4 x 4") post may be placed within a landscaped planter. 4. Lighting: Not permitted. 5. Special Provisions: Temporary site development signs shall be removed prior to the issuance of a temporary certificate of occupancy. 10/16/2012 Town of Vail Page 7 6. Content: No content other than listed below shall be included on a temporary site development sign: a. Temporary site development signs shall include the following information: (1) Project name. (2) Building permit number. (3) Contact information. Only one name, one phone number and one e-mail address shall be permitted. (4) Physical address. b. Temporary site development signs may include the following information: (1) Staff approved development slogans. (2) Brief factual description of the project. (3) Website address. (4) Artist rendering. (5) Proposed completion date. 11-7-13: CONSTRUCTION SIGNS: A. Description: A sign permitted to identify and describe a project under construction and the associated hazardous conditions. 1. Size: Any construction sign shall not exceed twenty (20) square feet, with a horizontal dimension no greater than ten feet (10'). 2. Height: The top of a sign shall be no higher than eight feet (8') from grade. 3. Number: One sign per site. 4. Location: A wall mounted sign shall be placed parallel to the exterior wall adjacent to the street or major pedestrianway which the building abuts and shall be subject to design review. If no wall exists for sign to be placed, the sign may be mounted on the construction fence. 5. Lighting: Not permitted. 6. Special Provisions: Construction signs shall be removed prior to the issuance of a temporary certificate of occupancy. 7. Content: Only the following text shall be included on construction signs with no other content permitted: a. Project name. b. Building permit number. 10/16/2012 Town of Vail Page 8 c. Contact information. Only one name, one phone number and one e-mail address shall be permitted. d. Physical address. V. REVIEW CRITERIA 1. The extent to which the text amendment furthers the general and specific purposes of the sign regulations. Staff finds that the prescribe regulations amendment continues to maintain the general purpose of the sign regulations outlined in Section IV above including promoting the health, safety, morals, and general welfare of the town of Vail and promoting the coordinated and harmonious design and placement of signs in the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of the highest quality. Staff finds the proposed prescribed regulation amendments will better describe and enable the fair and consistent enforcement of signs in the Town of Vail; encourage the establishment of well designed, creative signs that enhance the unique character of Vail's village atmosphere; preserve a successful and high quality business environment that is aided by signs that identify, direct, and inform; and aid in providing for the growth of an orderly, safe, beautiful, and viable community than the currently adopted regulations. Staff finds the proposed amendments maintain the original purposes for construction signs by requiring the display of important construction site information for emergency responders such as the site address, building permit number, emergency contact information, etc. Staff finds the proposed amendments provide opportunities to communicate additional construction site information to emergency responders, neighboring property owners, and the general public. The Vail Town Code does not allow real estate sales signs (except temporary open house signs) or off-site adverting. Temporary site development signs and construction signs are not intended to be de- facto advertising signs. By continuing to regulate the content of construction signs, Staff finds the proposed regulations maintain this intent. Therefore, Staff finds the proposed prescribed regulations amendments comply with this criterion. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town. Since the Town’s Billion Dollar Renewal communications program has ended and the commercial core temporary sign regulations of Ordinance No. 8, Series of 2010, have expired; the Temporary Site Development Sign provisions of the Town’s sign regulations are no longer relevant or valid. This is not clear based upon the current 10/16/2012 Town of Vail Page 9 language of the adopted sign regulations. Today, there is again confusion among many applicants as to which sign regulations are applicable to current construction projects - “construction sign” or “temporary site development sign” standards. Therefore, the applicant requests the provisions addressing temporary site development signs be repealed. While applicants no longer desire to erect a Billion Dollar Renewal slogan construction sign, they do prefer the sign content allowances of those temporary site development signs over the current content allowances for general construction signs. The applicant is proposing to expand the allowable content for construction signs to include those items previously allowed on temporary site development signs. Staff finds the content previously allowed on Billion Dollar Renewal temporary site development signs was consistent with the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and was compatible with the development objectives of the town. Staff finds that allowing similar content on general construction signs will continue to be consistent with the Vail Comprehensive Plan and the town’s development objectives. The applicant is also proposing to clarify the sign type, design, and landscaping requirements for construction signs which are not addressed by the current sign regulations. Therefore, Staff finds the proposed prescribed regulations amendments comply with this criterion. 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable. As described above, the Billion Dollar Renewal communications program has ended and the commercial core temporary sign regulations of Ordinance No. 8, Series of 2010, have expired; the Temporary Site Development Sign provisions of the Town’s sign regulations are no longer relevant or valid. This is not clear based upon the current language of the adopted sign regulations. Today, there is again confusion among many applicants as to which sign regulations are applicable to current construction projects - “construction sign” or “temporary site development sign” standards. Therefore, the applicant requests the provisions addressing temporary site development signs be repealed. While applicants no longer desire to erect a Billion Dollar Renewal slogan construction sign, they do prefer the sign content allowances of those temporary site development signs over the current content allowances for general construction signs. Therefore, the applicant is proposing to expand the allowable content for construction signs to include those items previously allowed on temporary site development signs. 10/16/2012 Town of Vail Page 10 Therefore, Staff finds the proposed prescribed regulations amendments comply with this criterion. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives. As described above, Staff finds the proposed prescribed regulations amendments are consistent with the general and specific purposes of the sign regulations and better implement and achieve the Town’s development objectives than the current regulations. Therefore, Staff believes the proposed prescribed regulations amendment complies with this criterion. 5. Such other factors and criteria the PEC and/or Town Council deem applicable to the proposed text amendment. VI. STAFF RECOMMENDATION Should the Planning and Environmental Commission choose to forward a recommendation of approval of this request to the Vail Town Council; the Community Development Department recommends the Commission pass the following motion: “The Planning and Environmental Commission forwards a recommendation of approval, for prescribed regulation amendments to Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11-3-3, Prescribed Regulations Amendment, Vail Town Code, to allow for amendments to the construction sign regulations, and setting forth details in regard thereto.” Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission makes the following findings: “Based upon the review of the criteria outlined in Section V of Staff’s September 24, 2012, memorandum and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the town; and 2. That the amendment furthers the general and specific purposes of the sign regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment 10/16/2012 Town of Vail Page 11 and its established character as a resort and residential community of the highest quality.” VI. ATTACHMENTS A. Existing construction sign example B. Expired temporary site development sign (Billion Dollar Renewal) example C. Proposed construction sign example 10/16/2012 10/16/2012 10/16/2012 only one name & business allowed 10/16/2012 Page 1 PLANNING AND ENVIRONMENTAL COMMISSION September 24, 2012 1:00pm TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 **Order and times of agenda items are subject to change** MEMBERS PRESENT MEMBERS ABSENT Susan Bird Luke Cartin Pam Hopkins Michael Kurz Bill Pierce Henry Pratt John Rediker 20 minutes 1. A request for a recommendation to the Vail Town Council on prescribed regulation amendments to Title 11, Sign Regulations, Vail Town Code, pursuant to Section 11-3-3, Prescribed Regulations Amendment, Vail Town Code, to allow for amendments to the construction sign regulations, and setting forth details in regard thereto. (PEC120031) Applicant: Town of Vail Planner: Bill Gibson ACTION: Recommendation of Approval with Modifications MOTION: Kurz SECOND: Bird VOTE: 6-0-0 CONDITIONS: 1. The applicant shall modify Section 11-7-6a-1 to allow a maximum sign area of 8 square feet in all residential zone districts. Construction signs in all other zone districts will continue to be allowed a maximum sign area of 20 square feet. Bill Gibson made a presentation per the Staff memorandum. Commissioner Kurz asked about construction sites being required to mitigate large construction fences. Otherwise he had no concerns about this application. Bill Gibson stated that Staff would look into potential regulations amendments. Commissioner Bird asked about projects that currently advertise multiple sub-contractors. Bill Gibson responded that these signs are illegal and are addressed by the Town’s Code Enforcement. He added that allowing website information on construction signs would help direct people to information about the various subcontractors involved in the project. Commissioner Bird supported allowing website information on construction signs. Commissioner Pratt stated that the examples provided show two ends of the spectrum and he is concerned about scale. He said the former billion dollar renewal signs may be appropriate for big construction projects. But for small projects, advertisements through realtor information and renderings are not appropriate. He does not support a realtor being the emergency contact name on the sign. 10/16/2012 Page 2 Commissioner Hopkins did not have any comment. Commissioner Rediker asked the original purpose for the signs and how to address the distinction between site information and advertising. He also noted concerns about balancing ease of implementation with one set of regulations with different regulations for different sized construction projects. Commissioner Kurz asked if a condition should be placed to restrict advertising. Commissioner Hopkins stated that there are a number of construction signs currently in East Vail. She believes the renderings help the neighborhood understand what the project will look like. Commissioner Kurz stated the signs could help people get excited about the project. Commissioner Pratt stated that instead of a rendering, perhaps the business logos of extra project partners could be on the sign. Commissioner Pierce stated it should include realtors, architects and contractor. He added the sign only needs to be 8 square feet in size instead of 20 square feet. Commissioner Hopkins stated the signs should only be 6 square feet like other signs. Commissioner Bird added she likes having a rendering allowed on the signs. Commissioner Pierce recommended reducing the allowable size of construction signs. Commissioner Hopkins stated 8 square feet would be good in residential zone districts and 20 square feet could remain in commercial zone districts. Commissioner Kurz agreed with Commissioner Hopkins. 45 minutes 2. A request for a recommendation to the Vail Town Council for a prescribed regulations amendment, pursuant to 12-3-7, Amendment, Vail Town Code, to allow for amendments to Title 12, Zoning Regulations, to amend the development review process, and setting forth details in regard thereto. (PEC120010) Applicant: Town of Vail Planner: Rachel Dimond ACTION: Tabled to October 8, 2012 MOTION: Kurz SECOND: Rediker VOTE: 6-0-0 Rachel Dimond made a presentation per the Staff memorandum. Commissioner Kurz noted concern about construction projects that affect roofs that change building height changes, snow shedding, etc. Commissioner Rediker asked for clarification about how off-site impacts are determined. He noted support for reducing fees and creating savings for developers and property owners. However, he is concerned about reducing fees below the costs of administering the regulations. Commissioner Rediker recommended clarifying the intent of the proposed text related to its applicability to avoid future confusion and legal challenges. He asked if important elements of 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Ordinance No. 15, Series of 2012, An Ordinance Amending Title 7, Vail Town Code by the Addition of Chapter 10 Regarding Commercial Transportation Regulations; and Setting Forth Details in Regard Thereto. PRESENTER(S): Dwight Henninger ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No.15, Series of 2012, on first reading. BACKGROUND: At the July 17, 2012 Council meeting direction was given on managing the transportation organizations in town. Staff is presenting this ordinance and management plan to put in action Council's direction. STAFF RECOMMENDATION: Approve, approve with modifications, or deny Ordinance No. 15, Series of 2012, on first reading. ATTACHMENTS: Transportation Memo Ordinance No. 15, Series of 2012 Passanger Transporation Management Map 10/16/2012 To: Vail Town Council From: Dwight Henninger, Chief of Police Date: October 10, 2012 Subject: Passenger Transportation Management I. SUMMARY After thorough discussion, Council gave staff direction at its July 17, 2012 meeting regarding effective management of public passenger transportation companies in the Town. This memorandum and attached ordinance address specific priorities of the Council. II. DISCUSSION The Police and Public Works Departments have collaborated to improve skier drop-off areas and develop a compromise plan to address concerns voiced by Council. This collaboration helps the Town find the right balance in managing areas congested by skier/boarder drop offs and pick ups. An ordinance, GHYHORSHGIRU&RXQFLO¶VFRQVLGHUDWLRQ, is based on rules and regulations at the Eagle County Airport. To reduce potential for confusion and conflicts, it seems logical to use similar rules to manage the same transportation companies servicing both the Town of Vail and the Eagle County Airport. Th HFRQVHTXHQFHVIRUYLRODWLQJ9DLO¶s ordinance are more lenient than consequences incurred for violating the ordinance enforced by the Airport. Nonetheless, they retain the same civil penalty enforcement stance. The ordinance authorizes the Town to implement a permitting system capable of tracking the permitted number of shuttles, luxury limousines, taxis and buses. It is recommended vehicle permit fees be set at $50 per year to cover partial costs of enforcement, permitting system software and vehicle permit stickers. The ordinance empowers the Town Manager to limit the pick-up, drop-off and staging areas for transportation companies and oversized transportation vehicles. 10/16/2012 Town of Vail Page 2 Enforcement Enforcement of this new ordinance will be carried out by Peace Officers, Code Enforcement Officers and Supervisors from the Parking and Transportation Departments. Town staff will be augmented as needed by private security companies to provide education, enforcement and traffic control as needed at the following locations: x Hanson Ranch Road Access is proposed for courtesy cars, taxis, luxury limousines, and van-sized hotel/motel shuttles. Because these vehicles would not be allowed to stop in the middle of the street, they would use the 5 minute parking area. Vehicles with seating for 16 passengers or greater would be prohibited on Hanson Ranch Road. This regulation would be signed at the entrance to Hanson Ranch Road. x Golden Peak and Vail Valley Drive Regulations would remain in place as they currently are working. Officers will continue to work with the Vail Resorts staff to ensure optimum traffic flow in the area. x East Lionshead Circle Courtesy cars, taxis, luxury limousines, and vans would use skier drop off parking on the first floor of the Lionshead Parking Structure. A new entrance gate allows vehicles entry to the main parking garage and options to either park or exit via the top deck booths. Oversized vans would use the top deck of the Lionshead Parking Structure, which would place their passengers close to the elevator in the new Welcome Center and easy access to the street level. Oversized hotel/motel shuttles would use the area on the north side of East Lionshead Circle east of the Welcome Center. x See the table below for all locations and allowed vehicle types. Vehicle Type & Permitted Locations Matrix 16 Passenger Rated Courtesy Private Taxis & Location Shuttl es Vans or Less Cars Cars Limos Cascade Yes Yes Yes Yes Yes Concert Hall Plaza No Yes Yes Yes Yes LH Parking Structure Top Level No Yes Yes Yes Yes LHWC Yes No No No No LHWC-Skier Drop Off No Yes < 7' Height Yes < 7' Height Yes < 7' Height Yes < 7' Height VTRC-Info Center Yes No No No Yes VTRC-Skier Drop Off No Yes Yes Yes Yes Vail Mountain Haus No No No No No 10/16/2012 10/16/2012 Ordinance No. 15, Series of 2012 ORDINANCE NO. 15 SERIES OF 2012 AN ORDINANCE AMENDING TITLE 7, VAIL TOWN CODE BY THE ADDITION OF CHAPTER 10 REGARDING COMMERCIAL TRANSPORTATION REGULATIONS; AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Town of Vail, in the County of Eagle and State of Colorado (the "Town"), is a home rule municipal corporation duly organized and existing under laws of the State of Colorado and the Town Charter (the "Charter"); WHEREAS, the members of the Town Council of the Town (the "Council") have been duly elected and qualified; WHEREAS, the Council finds that hindering transportation within the Town is of public concern and efficient police regulation of such a crime would preserve the general welfare of the citizens and guests of the Town. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT; Section 1. Title 7 is hereby amended by the addition of Chapter 10, COMMERCIAL TRANSPORTATION REGULATIONS to read as follows: Chapter 10 COMMERCIAL TRANSPORTATION REGULATIONS 7-10-1: PURPOSE: The purpose of this Chapter is to protect the safety of pedestrians and motorists in the Town by reducing congestion in skier drop-off locations and monitoring the significant increase in hotel and motel shuttles. 7-10-2: DEFINITIONS: 10/16/2012 Ordinance No. 15, Series of 2012 AUTOMATED VEHICLE IDENTIFICATION TRANSPONDER (AVI): A transponder issued by the Town to each motor vehicle in a Commercial Operator's fleet, which allows the Town to record the timing of and the number of trips made by each motor vehicle through the Town. BUS OPERATORS: Commercial Operators engaged in the business of providing passenger transportation in motor vehicles having a capacity of twenty-six (26) or more persons, or as otherwise defined by the Colorado Public Utilities Commission, except for Commercial Operators regulated by the federal government, such as Greyhound. COMMERCIAL OPERATOR: A person or entity operating motor vehicles upon Town roadways in connection with any activity involving passenger transportation for a profit, regardless of whether operating as an employee or independent contractor, or whether operating under a company name, including without limitation Bus Operators, Hotel and Motel Operators, Luxury Limousine Operators and taxis; but excluding universities, non- profit organizations, hospitals, ambulance services, or governmental units (including local, state and federal agencies), construction and maintenance contractors, suppliers and service providers not primarily engaged in passenger transportation, and mail delivery systems such as Federal Express, United Parcel Service and the U.S. Post Office. For purposes of this Chapter, transportation companies with common ownership or common control, or those acting on behalf of or in concert with another company, will be treated as one Commercial Operator. CRUISING: Operation of a motor vehicle upon Town roadways or facilities by a Commercial Operator for the purposes of soliciting or attempting to solicit passengers in any location other then in the loading or staging areas specifically authorized for such use in these regulations. DWELL TIME: The period of time during which a motor vehicle remains upon areas specifically authorized for loading or staging. TRANSPORTATION YEAR: November 1 through October 31 of the following year. HOTEL AND MOTEL OPERATORS: Commercial Operators engaged in the business of providing temporary or short-term lodging and associated services to the public and transporting passengers to facilities used for temporary or short-term lodging. 10/16/2012 Ordinance No. 15, Series of 2012 INFREQUENT USER: A Commercial Operator that does not transport passengers to and from the Town more than two (2) days during a Transportation Year. LOADING AND UNLOADING AREAS: Those areas authorized for passenger loading and unloading as shown on a map on file with the Town Manager and available for inspection during regular business hours. LUXURY LIMOUSINE OPERATORS: Commercial Operators engaged in the business of providing charter transportation to the public in vehicles with a manufacturer’s rated maximum capacity of six (6) to twelve (12) persons including the driver, or as defined by the Colorado Public Utilities Commission. OVERSIZED VEHICLE: A vehicle that has a seating capacity for sixteen (16) or more including the driver, but less than twenty-six (26) seats. REPLACEMENT VEHICLE: A vehicle intended by a Commercial Operator to replace a vehicle that had been registered for that Transportation Year, but was subsequently destroyed or sold. 7-10-3: PERMIT REQUIRED: A. Every Commercial Operator other than an Infrequent User shall register with the Town and obtain a permit at least thirty (30) days prior to each Transportation Year. The Town shall issue a permit to the vehicles of any Commercial Operator who agrees to continuously satisfy the terms and conditions of this Chapter. B. Each application for a permit under this Chapter shall be accompanied by a permit fee, which shall be established each year in an amount determined by the Town Manager. C. Each permit shall be individually numbered. D. The permit shall be permanently affixed to the vehicle front windshield on the lower passenger’s side window for each permit and visible to the public. E. If a permit is damaged, a new permit will be issued only when the remains of the damaged permit are filed with the Town. 10/16/2012 Ordinance No. 15, Series of 2012 7-10-4: DOCUMENTS REQUIRED: Commercial Operators requiring authorization by or registration with the Colorado Public Utilities Commission or the federal government shall submit to the Town current copies of such authorizations, registrations and tariffs issued to the Commercial Operator by those agencies. 7-10-5: INSURANCE: A. Policies: Commercial Operators shall submit certificates of insurance in a form acceptable to the Town with the following coverages: comprehensive general liability insurance policy with limits of not less than $150,000 for any one person injured in any one accident and $600,000 for injury to two or more persons in a single occurrence; motor vehicle insurance in such minimum amounts as required by the Colorado Public Utilities Commission; and the statutory required workers’ compensation insurance coverages on all employees. B. Additional Insured: The Town shall be named as an additional insured on the general liability and motor vehicle liability policies. C. Certificates: The Commercial Operator shall furnish certificates to the Town prior to commencing operations evidencing that the insurance is in full force and effect during the term of the operating privilege and that the Town shall be notified by the insurers, in writing, at least ten (10) days prior to any cancellation of the policy. 7-10-6: INDEMNIFICATION: By registering with the Town, each Commercial Operator agrees to indemnify, defend, and save the Town and its respective agents, officers, and representatives and employees harmless from and against any and all judgments, penalties, liability or loss, including costs and reasonable attorney fees resulting from claims or court actions, whether civil, criminal or in equity, arising directly or indirectly out of acts of the Commercial Operator, its agents, employees or servants, or through any injury or casualty occurring in the Town as a result of said loss. 7-10-7: CONDUCT: 10/16/2012 Ordinance No. 15, Series of 2012 Commercial Operators shall abide by the following rules of conduct: A. Demeanor: Commercial Operators shall be courteous to the public and to other Commercial Operators and their employees. The Commercial Operator’s employees shall be clean, efficient and neat in appearance. Commercial Operators shall not allow employees in public to use improper language or to act in a loud or boisterous or otherwise improper manner. Commercial Operators shall not engage in open, notorious and public disputes, disagreements or conflicts tending to deteriorate the quality of passenger transportation services of Commercial Operators or their competitors or incompatible with the best interests of customer service in the Town. B. Deception: It shall be a violation of this ordinance for a Commercial Operator to deceive or attempt to deceive the public through false representations concerning its prices or services or those of any other passenger transportation provider. C. Obedience to Signs: Commercial Operators shall obey all posted regulatory signs in the Town. D. Unattended Vehicles: It is unlawful for any Commercial Operator to leave a motor vehicle unattended upon Town streets or facilities. A motor vehicles left without a driver or that causes an obstruction of traffic may be immediately towed at the Commercial Operator’s expense. In addition, the Town shall have the authority to require a Commercial Operator to move its motor vehicle for efficient traffic movement or pedestrian safety. E. Passenger Loading, Pick-up and Drop-off: The Town may designate specific pick-up and drop-off locations on Town facilities such as the Village Transportation Center and Lionshead Parking Structure. The Town may restrict waiting, parking of Commercial Operator’s vehicles, pick-up and drop-off locations on Town streets. These areas will be in a map maintained on file in the office of the Town Manager and available for inspection during regular business hours. F. Cruising: It is unlawful for Commercial Operators to engage in cruising. G. Double Parking: Double parking of motor vehicles by Commercial Operators on Town roadways is prohibited. H. Vehicle Idle Time: Commercial Operators are encourage to turn off their vehicles during dwell time. If it is not practicable to turn off a vehicle due to extreme cold, 10/16/2012 Ordinance No. 15, Series of 2012 Commercial Operators are encouraged to limit any vehicle idling time to fifteen minutes or less. I. Oversized Vehicles: To ensure efficient traffic movement and protect pedestrian safety, the Town may restrict oversized vehicles from certain areas of the Town, and such restrictions shall be indicated by appropriate signage. 7-10-8: AVI TRANSPONDERS: A. The Chief of Police may, at any time after the effective date of the ordinance codified in this Chapter, determine that each vehicle in every Commercial Operator's fleet should be equipped with an AVI Transponder. If such a determination is made, the Town shall provide written notice to all permitted Commercial Operators that an AVI Transponder will be required by a date certain, not less than thirty (30) days following the date of the notice. B. An AVI Transponder may be purchased from the Town for a fee established by the Town Manager. C. The Commercial Operator is responsible for the care, maintenance, and upkeep of each of its AVI Transponders. D. Except as otherwise permitted, an AVI Transponder shall remain affixed to the vehicle to which it is assigned. An AVI Transponder may only be transferred to a Replacement Vehicle upon written approval of and reassigned by the Town. An AVI Transponder shall not be transferred between or among vehicles within the fleet of a Commercial Operator and the use by a Commercial Operator of an AVI Transponder issued to a different Commercial Operator is strictly prohibited. E. The Town may deactivate an AVI Transponder in the event of misuse. 7-10-9: VIOLATION; PENALTY. A. First Violation: A first violation of this Chapter shall result in the issuance of a Warning Notice to the Commercial Operator. The Warning Notice may be delivered by hand delivery, via facsimile, or forwarded by regular mail to the Commercial Operator and the registered owner of the transportation company. 10/16/2012 Ordinance No. 15, Series of 2012 B. Second Violation: Upon a second violation during a Transportation Year, the Commercial Operator will receive a Warning Notice in the same manner as described in subsection A hereof. C. Third Violation: Upon a third violation during a Transportation Year, a Commercial Operator’s operating privileges in the Town shall be suspended for a period of seven (7) days. The Town shall give the Commercial Operator five (5) days prior written notice of the effective date for the suspension of said privileges. Failure to comply with the terms of the suspension shall be cause for issuance of an additional violation and revocation of operating privileges for a period of one (1) year. D. Revocation: Upon a fourth violation during a Transportation Year, the operating privileges of a Commercial Operator shall be revoked for a period of one (1) year. Commercial Operators whose operating privileges have been revoked shall be denied access to Town roadways. A Commercial Operator whose operating privileges have been revoked for other than willful violations of this Chapter may request a meeting with the Town Manager to demonstrate that such Commercial Operator has remedied or is making a good faith attempt to remedy its failure to satisfy the requirements of this Chapter. The Town Manager or designee may reverse the revocation and reinstate the permit if good cause is shown for reinstatement. E. Emergency Suspension: Notwithstanding any other provision herein, the Town Manager or designee may summarily suspend, without prior notice, the operating privileges of a Commercial Operator, if the Town Manager or designee has reasonable grounds to believe that the public health, safety or welfare requires such emergency suspension. F. Additional Penalties. Violations of this Chapter shall also be subject to the penalties contained in Chapter 4 of Title 1 of this Code. The imposition of any one penalty contained in this Section shall not preclude the imposition of any other penalty allowed by law. 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 10/16/2012 Ordinance No. 15, Series of 2012 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 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 4. 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. Section 5. The 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. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 16th day of October, 2012, and a public hearing for second reading of this Ordinance set for the 6th day of November, 2012, at 6:00 P.M. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. _______________________ Andrew P. Daly, Town Mayor ATTEST: __________________________ Lorelei Donaldson, Town Clerk 10/16/2012 Solaris Lodge at Vail Manor Vail Golden Peak The Wren Mountain Haus Talisman All Seasons Row Houses Austria Haus Red Lion One Willow Bridge Vail Trails Chalets Lodge Tower The Willows illage ondos Vorlaufer Christiania Tyrolean Edelweiss Tivoli Lodge Vail Mountain Plaza Covered Bridge/ Pepi's Sitzmark Lodge Village Inn Plaza (VIP) Village Core Condos Rams Horn Riverhouse Vail Mountain Lodge / VAC Plaza Lodge Mountain View Condos Galatyn Lodge Apollo Park One Vail Place Creek- side LazierArcade Riva Ridge South A&D Bldg. Texas Townhomes Villa Valhalla Riva Ridge North ark Bell Tower Gorsuch/ Clock Tower Bridge Street Lodge Rucksack Bus Terminal Vail Mountain Club w Village Center Condos Vista Bahn Building Chalets at the Lodge at Vail Gallery Building Christiania Residences Hill Building Mill Creek Court Summers Lodge Gore CreekPlaza Bridge Street Condos Information Hong KongCafeBldg CheckpointCharlie Xcel Vail Trails East Founders Park Manor Vail Vail Townhouse Condos F Vista Bahn Vans, Courtesy Cars & Limos Shuttles & Oversized LimosTaxis No Transportation Companies Unless for Mountain Haus Vans, Courtesy Cars, Taxis & Limos (no oversized vehicles) Vans, Courtesy Cars, Taxis & Limos Buses & Shuttles 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) October 10, 2012 Passenger Transportation ManagementPassenger Transportation Management Arrabelle Landmark Vail 21 First Chair Libr Vantage Point Montaneros Do Westwind Lionshead Centre Enzian Lift House Tree Tops Lion Square Lodge North Lodge at Lionshead ad Lionshead Arcade PH III West Lionshead Plaza Chair Lionshead Inn Annex Vail Lionshead (Swedish Cabin) Ticket Office Restrooms PH IIPH I Lionshead Transit Center Skier Drop-Off Charter Bus LotLionshead Parking Structure 70 Town of Vail Buses Only Oversized Shuttle Loading Oversized Vans, Courtesy Cars, Taxis & Limos w/ Roof Racks Lionshead Skier Drop-Off - Ground Level (< 7' height) - Vans, Courtesy Cars, Taxis & Limos Vans, Courtesy Cars, Taxis & Limos 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Resolution No. 31, Series of 2012, a resolution repealing and reenacting the Town of Vail Employee Housing Strategic Plan. PRESENTER(S): Nina Timm, Community Development Department ACTION REQUESTED OF COUNCIL: The Community Development Department requests the Vail Town Council listen to the Staff presentation, ask questions and provide feedback. The Community Development Department also requests the Vail Town Council grant a continuance of Resolution No. 31, Series of 2012, to its November 6, 2012, public hearing for further deliberation. BACKGROUND: The Town of Vail adopted its Employe Housing Strategic Plan on September 2, 2008. Since that time market conditions have changed, additional information is available and there has been completion of action items from the current plan. Proposed amendments to the Employee Housing Strategic Plan make it a more current and relevant guide for decision making. STAFF RECOMMENDATION: The Community Development Department recommends the Vail Town Council grant a continuance of Resolution No. 31, Series of 2012, to its November 6, 2012, public hearing for further deliberation. ATTACHMENTS: Staff Memorandum Resolution No. 31, Series of 2012 Attachment A Economic Indicators EV of Vails Investment in Employee Housing Final Chamonix Market Update Draft Housing Needs Assessment 10/16/2012 To: Vail Town Council From: Community Development Department Date: October 16, 2012 Subject: Resolution No. 31, Series of 2012, a resolution amending the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. I. SUMMARY The applicant, the Town of Vail, is requesting a work session to discuss proposed amendments to the Town of Vail Employee Housing Strategic Plan (EHSP). The proposed amendments located in Exhibit A of Resolution No. 31, Series of 2012 have been attached for review (Attachment A). On September 25, 2012, the Vail Local Housing Authority forwarded a recommendation of approval to the Vail Town Council for the proposed amendments. As this is a work session, the Community Development Department recommends the Vail Town Council listen to the Staff presentation, asks questions, and provide direction by answering the following: • Does the Current Conditions section that has been added to the EHSP contain all of the information the Town Council would like included? If not, what additional information should be added? • Are there additional objectives the Town Council would like added to the EHSP? • Does the Implementation Matrix for the next three to five year period include the actions the Town Council would like to complete? • Are there items the Town Council would like to add to or remove from the Implementation Matrix? II. DESCRIPTION OF THE REQUEST WHY UPDATE THE EMPLOYEE HOUSING STRATEGIC PLAN? The applicant is proposing amendments to the Employee Housing Strategic Plan at this time due to the following: • Real estate market changes • Economic and housing analysis/data updates 10/16/2012 Town of Vail Page 2 • Policy shifts toward for-sale employee housing development • Completion of action items from the current plan WHICH SECTIONS OF THE EMPLOYEE HOUSING STRATEGIC PLAN ARE PROPOSED TO BE AMENDED? The applicant is proposing amendments to update the following sections of the Employee Housing Strategic Plan: • Background • Current Conditions • Threats and Weaknesses, Strengths & Opportunities • Objectives • Action Steps • Implementation Matrix • Glossary • Attachments WHICH SECTIONS OF THE EMPLOYEE HOUSING STRATEGIC PLAN ARE NOT PROPOSED TO BE AMENDED? • Purpose • Planning Time Frame • Policy Statements • Roles and Responsibilities WHAT ARE THE CURRENT OBJECTIVES AND POLICY STATEMENTS OF THE EMPLOYEE HOUSING STRATEGIC PLAN AND WHAT AMENDMENTS ARE PROPOSED? The following is a list of the current objectives of the Employee Housing Strategic Plan. OBJECTIVES (in part) A. Provide housing to address needs generated by new development or redevelopment. B. Respond to the existing affordable housing shortfall by pursuing a number of identified programs and development opportunities. C. Call for any deed-restricted housing that is required as a condition of development to be constructed at the time new development occurs. D. Creation and maintenance of housing in Vail for emergency and key service workers. 10/16/2012 Town of Vail Page 3 E. Actively address affordable housing for Vail workers to ensure that the community remains competitive in economic terms. F. Increase and maintain deed-restricted housing within the Town to encourage the efficient use of resources by placing employees closer to their place of work. G. Planning for new employee housing will take jobs and wages into account. H. Provide and plan for housing along with local and regional public transportation. The following is a list of the current policy statements of the Employee Housing Strategic Plan. The applicant is proposing no changes to the current policy statements. POLICY STATEMENTS (in part) The Town of Vail will pursue three broadly described methods to achieve the Town’s housing goal. The Town will Impose Regulatory Requirements • Development will be required to address a portion of its housing demand within the Town of Vail; and • New development and redevelopment will be required to address a portion of its housing demand at the development site. Development and Acquisition Initiated by the Town • To address employee housing needs beyond the regulatory requirements for new development; and • To respond to the desire to promote a more diverse and vibrant local community. Form Regional Partnerships • These efforts will address employee housing needs beyond the regulatory requirements by actively seeking partnerships, including: o Public / Private, and o Multi Jurisdictional. ARE THERE ACTION ITEMS THE TOWN COUNCIL WOULD LIKE TO ADD OR REMOVE FROM THE IMPLEMENTATION MATRIX? A. Action items for 2013 to 2016 – For Sale Development Focus a. Chamonix Commons b. New financing for Timber Ridge Village Apartments c. Eagle River Water & Sanitation District partnership 10/16/2012 Town of Vail Page 4 i. Snowberry – up to 4 new for-sale units ii. East Vail – up to 4 new for-sale units d. Partner with Eagle County e. 2507 Arosa Drive redevelopment f. Develop new zoning incentives to incent private sector EHU development i. Amend the EHU Exchange Program to allow for administrative approval of proposed exchanges ii. Allow certain retirees to live in EHUs iii. Work with private sector to develop additional incentives B. Action Items for 2017 to 2022 – to be updated as needed a. Gore Range Condo redevelopment b. Timber Ridge Redevelopment c. Evaluate Town owned properties for development opportunity (i.e., parking structures, etc.) d. Buy Downs e. Partner with Vail Resorts to develop EHUs f. Partner with Cascade Resort to develop EHUs C. Action Items for 2023 and Beyond – to be updated as needed a. Partner with Sonnenalp Resort to develop additional EHUs b. When Red Sandstone Elementary redevelops add EHUs c. Building second building at Buzzard Park – Town Shops d. Acquire underdeveloped properties for redevelopment e. Partner with Vail Valley Medical Center to develop EHUs III. BACKGROUND The Town of Vail Employee Housing Strategic Plan was established on September 2, 2008 through the Town Council’s adoption of Resolution No. 20, Series of 2008. On August 21, 2012, the Vail Town Council held a work session to discuss the proposed amendments to the Employee Housing Strategic Plan. The Vail Local Housing Authority had discussed these proposed amendments to the Employee Housing Strategic Plan at its August 23, August 28, September 6, and September 25, 2012, public meetings. On September 25, 2012, the Vail Local Housing Authority forwarded a recommendation of approval to the Vail Town Council for the proposed amendments. Since the Town adopted the Plan in 2008 market conditions have changed throughout Eagle County. The proposed Implementation Matrix does not ask the business community or new development to take any new or additional actions to provide employee housing. Proposed action items for the next five-year period focus on developing new for-sale housing units rather than rental units. Today, 90% of current EHUs are renter-occupied and focusing on for-sale units will provide a greater diversity in housing opportunities and residents. 10/16/2012 Town of Vail Page 5 The Plan indicates a planning time frame of five to ten years and acknowledges the Implementation Matrix should be updated more frequently. The proposed Implementation Matrix provides action steps for the Town of Vail to take to help achieve the goal of ensuring 3 out of 10 employees a housing unit in Vail. Today, commercial linkage and inclusionary zoning are designed to conjunctively ensure there is deed restricted employee housing for at least 30% of new employees generated by new development and redevelopment. The regulatory requirements provide multiple methods of mitigation and do not require employee housing be provided for a specific type of wage earners. The goal is for development to provide the type(s) of employee housing most suited to the needs of that development’s future employees. Catch Up is a portion of the Town’s goal that is exclusively within the purview and control of the Town of Vail. Based on the Town’s goal and existing deed restricted properties in Vail, the deed restricted employee housing unit gap is currently 677 beds. With an average occupancy of 2.04 people per unit, the 677 bed gap equates to 332 new deed restricted employee housing units (EHU). Today there are 725 deed restricted EHUs in Vail. EHUs are an effective means to continue to increase the total number of full-time households living in the Town of Vail. Full-time households are the cornerstone to Vail remaining a vibrant resort community. There are successful resorts that do not have communities and Vail has chosen to be the premier international resort community! BBC Research & Consulting completed a study in Vail quantifying the Economic Value of the Town of Vail’s Investment in Employee Housing, dated March 29, 2012. The study enumerated the economic benefits as well as benefits that go beyond direct economics of having EHUs in Vail. Including: • Improved guest experience – the most basic product sold by Vail; • Better positioning against other resorts competing for a quality workforce; • Reduction in the seasonality of local businesses; • Increased vitality, diversity and “real town” authenticity for the town; • Increased community participation (volunteers, board members, etc.); and • Enhanced ability for younger workers to stay in Vail and grow into higher-level employment and community leadership positions. • Opportunities for families to remain in Vail and raise a generation of new Vail residents, support local schools and create a critical mass of residents, which would all be jeopardized without the Town’s support of deed-restricted for-sale housing in addition to rental units. Today, 64% of Vail’s dwelling units are partially occupied or vacant. Based on existing trends, over time the percentage of partially occupied or vacant dwelling units is likely to increase. Having a critical mass of homeowners live in a community: 10/16/2012 Town of Vail Page 6 • gives residents a greater stake in the community, • increases the number and diversity of businesses in neighborhoods, and • stimulates economic investment. This furthers the Town Council’s Key Goals to: 1) Improve economic vitality, 2) Grow a balanced community, 3) Improve the quality of the experience, and 4) Develop future leadership. IV. ACTION REQUESTED OF THE COUNCIL As this is a work session, the Community Development Department recommends the Vail Town Council listen to the Staff presentation, asks questions, and provides direction on how to proceed with amendments to the Employee Housing Strategic Plan by answering the following: 1. Does the Current Conditions section that has been added to the EHSP contain all of the information the Town Council would like included? If not, what additional information should be added? 2. Are there additional Objectives the Town Council would like added to the EHSP? 3. Does the Implementation Matrix for the next three to five year period include the actions the Town Council would like to complete? 4. Are there items the Town Council would like to add to or remove from the Implementation Matrix? V. RECOMMENDATION The Community Development Department recommends the Vail Town Council grants a continuance of Resolution 31, Series of 2012, to its November 6, 2012, public hearing for further deliberation. VI. ATTACHMENTS A. Resolution No. 31, Series of 2012, a resolution amending the Town of Vail Employee Housing Strategic Plan with Attachment A (Employee Housing Strategic Plan) 10/16/2012 1 Resolution No. 31, Series of 2012 RESOLUTION NO. 31 Series of 2012 A RESOLUTION REPEALING AND REENACTING THE TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the "Town"), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the "Charter"); and WHEREAS, the Town has determined that no less than thirty percent (30%) of Vail's workforce should be provided deed restricted employee housing within the Town limits; and WHEREAS, the Council has determined that in order to achieve the established goal it is critical to create an employee housing strategic plan establishing and clarifying the objectives and action steps essential to achieve the stated goal; and WHEREAS, the Vail Local Housing Authority and Council developed the Employee Housing Strategic Plan over a period of six months that outlines the goal, objectives and action steps; and WHEREAS, the Vail Economic Advisory Committee provided input and direction on the Employee Housing Strategic Plan at their May 13, 2008, and June 10, 2008, meetings; and WHEREAS, the Planning and Environmental Commission provided input and direction on the Employee Housing Strategic Plan at their August 25, 2008, Public Hearing; and WHEREAS, the Council supports the implementation of the Vail Employee Housing Strategic Plan; and WHEREAS, the Employee Housing Strategic Plan will direct policy and budget decisions in order to achieve the community's stated goal; and WHEREAS, it is the intention of the Council and the Housing Authority to implement the Employee Housing Strategic Plan over the next three years; and WHEREAS, market conditions have changed since the Employee Housing Strategic Plan was adopted, additional information now exists about housing in Vail and Eagle County, and certain action items from the current plan have been completed; and 10/16/2012 2 Resolution No. 31, Series of 2012 WHEREAS, the Vail Local Housing Authority discussed proposed amendments to the Employee Housing Strategic Plan at their August 23, August 28, September 6 and forwarded a recommendation of approval at their September 25, 2012, public meetings; and WHEREAS, the Vail Town Council finds and determines that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the town; and WHEREAS, the Vail Town Council finds and determines that the amendment to the Town of Vail Employee Housing Strategic Plan furthers the general and specific purposes of the plan; and WHEREAS, the Vail Town Council finds and determines that the amendments promote the health, safety, morals, and general welfare of the town and promote the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: The Town Council repeals and reenacts the Town of Vail Employee Housing Strategic Plan, dated November 6, 2012, attached hereto as Exhibit A. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 6th day of November, 2012. __________________ Andrew P. Daly, Mayor ATTEST: _________________________ Lorelei Donaldson, Town Clerk 10/16/2012 To w n o f V a i l C o m m u n i t y D e v e l o p m e n t D e p a r t m e n t 20 1 2 U p d a t e Em p l o y e e H o u s i n g S t r a t e g i c P l a n To ensure there is deed restricted housing for at least 30% of Vail’s workforce within the Town of Vail 10/16/2012 10/16/2012 In recognition of the commitment to ensure deed-restricted housing options for at least 30% of Vail’s workforce within the Town of Vail Vail Town Council Vail Local Housing Authority Andy Daly, Mayor Steve Lindstrom, Chair Ludwig Kurz, Mayor Pro-Tem Scott Ashburn Kerry Donovan Mary McDougall Kevin Foley Kim Newbury Greg Moffet John Rediker Margaret Rogers Susie Tjossem Town of Vail Community Development Department George Ruther, Director Nina Timm, Housing Coordinator 10/16/2012 Table of Contents Background 1 Purpose Current Conditions Time Frame Threats, Weaknesses, Strengths & Opportunities Objectives Policy Statements Action Steps Implementation Matrix Roles and Responsibilities Appendix New text in bold italics. Text to be deleted has a strikethrough. 10/16/2012 1 Employee Housing Strategic Plan TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN BACKGROUND In 2006, through the Vail 20/20 Focus on the Future process the community established a housing goal. It is as follows: “The Town of Vail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and will provide enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development.” Based upon the community’s work, the Vail Town Council has confirmed the Town of Vail recognizes deed restricted employee housing as basic infrastructure. This type of housing allows employees to live within the town, promoting community, and improving the quality of our local workforce, thereby supporting the local economy, and reducing regional transit needs. The Employee Housing Strategic Plan seeks to meet the expectations established by the community and confirmed by the Town Council and provide enough deed-restricted housing for at least 30 percent of the community’s workforce to live in the Town of Vail through a variety of policies, regulations and publicly initiated development projects. The Town of Vail adopted its Employee Housing Strategic Plan in September, 2008, at the height of the global real estate market boom. As market conditions have changed throughout Eagle County and numerous action items from the Employee Housing Strategic Plan (EHSP) have been completed the Town of Vail is amending the Implementation Matrix and is adding new information to the EHSP to ensure the EHSP continues to achieve the Town’s employee housing goal that was established in 2006 and adopted in 2008 as part of the Employee Housing Strategic Plan. In Vail today, approximately 90% of existing deed restricted employee housing units (EHU) in Vail are renter occupied. Based on the Vail Town Council’s adopted goals of: improve economic vitality, grow a balanced community, improve the quality of the experience, and 10/16/2012 2 Employee Housing Strategic Plan develop future leadership and that having a critical mass of homeowners live in a community: gives residents a greater stake in the community, increases the number and diversity of businesses in neighborhoods, and stimulates economic investment amendments to the EHSP and specifically the Implementation Matrix will focus, at least in the next five-years, on developing new for-sale EHUs with the goal of achieving the community’s stated goal of providing enough deed-restricted housing for at least 30% of the workforce through policies, regulations and publicly initiated development. Achieving the goal is critical for Vail’s long-term success as a resort community. It is also recognized that housing needs follow economic growth and recession cycles. Successful implementation of the EHSP will provide 3 out of every 10 employees an EHU in Vail and the remaining 7 out of 10 employees will rely on the private sector for their housing. PURPOSE The EHSP is a decision-making guide for the implementation of employee occupied housing programs. The EHSP documents the Town’s current approaches to ensuring employee housing. It identifies the goal, outlines methods and defines action steps the Town will pursue. In addition, the Appendices provide background information on Town housing definitions, policies, and initiatives. The appendices also include relevant reports to support EHU development and policy decisions in Vail. This information is provided as an additional resource. The EHSP also recognizes and affirms the importance of Vail constantly serving as a regional partner in the provision of employee housing. The EHSP is meant to lead the actions of Staff, the Vail Local Housing Authority and the Vail Town Council in future decisions regarding funding and development of employee housing in Vail. CURRENT CONDITIONS Dwelling Units As of 2010 there are approximately 7,230 dwelling units in the Town of Vail, this is an almost seventy percent (70%) increase in the number of dwelling units than existed in 1980. From 1980 to 2010, Vail’s population increased nearly forty three percent (43%). Vail has always been and continues to be a highly desirable 10/16/2012 3 Employee Housing Strategic Plan location to own a vacation home and this is clearly evident based on the increase in the number of dwelling units at nearly twice the pace the number of full-time residents has increased. According to the 2010 US Census sixty four percent (64%) of Vail’s dwelling units are partially occupied or vacant. Town of Vail 1980 1990 2000 2010 Dwelling Units 5029 6167 5389* 7230 Number of EHUs 198 205 389 725 % EHUs 3.9% 3.3% 7.2% 10% Number of Households 1680 2165 2604 Vail’s Population 2261 3659 4531 5305 % Population Increased 62% 24% 17% (Source: 1980, 1990, 2000 & 2010 US Census and Town of Vail Community Development Dept) *As reported in the 2000 US Census Since the Town adopted its EHSP there is been highest median price per square foot for Vail real estate in its history. Following 2008, there was a significant decrease in the median price per square foot for real estate and since then it appears to be more level. The spike in 2010 is likely related to unit sales at Solaris that went under contract in 2007/2008. (Source: Eagle County Assessor’s Office) The major redevelopment that Vail experienced from 2004 to 2012 also more than doubled (229% increase)from 376 existing dwelling units to 1,238 dwelling units today in Vail Village and Lionshead associated with 33 major projects. During this same period of time, the number of EHUs associated with 33 of the major redevelopment projects increased from 95 EHUs to 164 EHUs (72% increase). $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 20072008200920102011 $596 $897 $503 $596 $460 Vail's Median Price Per Square Foot 10/16/2012 4 Employee Housing Strategic Plan (Source: Town of Vail Community Development Department) There are 2,604 full-time occupied dwelling units in the Town of Vail. 725 of the 2,604 full-time occupied dwelling units in Vail are EHUs. As evidenced by the data, EHUs are an effective means to continue to increase the total number of full- time households living in Vail. Full-time households are the cornerstone to Vail remaining a vibrant resort community. (Source: Town of Vail Community Development Department) Existing EHUs breakdown as follows: Timber Ridge Village Apartments 198 Units Rental, Seasonal Middle Creek Apartments 142 Units Rental, Affordable 376 95 46 546 862 69 105 100 0 200 400 600 800 1000 1200 1400 Dwelling UnitsEmployee Housing Units Fractional Fee Units Accommodation Units Development Statistics for 33 Major Redevelopment Projects Net New 2004-2012 Prior to Redevelopment in 2004 0 198 205 389 725 0 200 400 600 800 19701980199020002010 Deed Restricted EHUs 10/16/2012 5 Employee Housing Strategic Plan Required Mitigation 132 Units Rental, Seasonal Privately Owned Units 127 Units Rental Owner-Occupied, Price Capped Units 81 Units For-Sale, Affordable Town of Vail Owned Units 45 Units Rental, Seasonal The affordability of existing EHUs generally breakdown as follows: Timber Ridge Village Apartments 60% of Area Median Income Middle Creek Apartments 60% of Area Median Income Owner-Occupied, Price Capped Units • 53 units at Vail Commons 80% 2-Person Area Median Income • 18 units at Red Sandstone Creek 100% 2-Person Area Median Income • 6 units at North Trail Townhomes 110% 2-Person Area Median Income • 2 units at Arosa Duplex 140% 2-Person Area Median Income • 2 Buy Down Units 100% 2-Person Area Median Income Town of Vail Owned Units 60% of Area Median Income (average) (Source: Town of Vail Community Development Department) Jobs and Wages • According to the 2000 and 2010 US Census, Vail had a 43% or a 506 household decrease in the number of households earning $50,000 to $200,000 annually (likely local wage earners) from 2000 to 2010. • During the same time period Eagle County had a 25% or 2,206 household increase in the number of households earning between $50,000 and $200,000 annually. $0$200,000$400,000 Vail Commons 3-Bedroom Red Sandstone 3- Bedroom North Trail 3-Bedroom Arosa Duplex 3-Bedroom $245,000 $285,000 $295,000 $425,000 2012 Average 3-Bedroom Max Sale Price -Appreciation Capped 10/16/2012 6 Employee Housing Strategic Plan 2000 HH Income Ranges in 2010 $ 2000 2010 2010 HH Income Ranges in 2010 $ $12,500 to $31,249 238 212 $10,000 to $24,999 $31,250 to $62,499 545 68 $25,000 to $49,999 $62,500 to $93,749 541 122 $50,000 to $74,999 $93,750 to $124,999 253 162 $75,000 to $99,999 $125,000 to $187,499 283 274 $100,000 to $149,999 $188,000 to $250,000 98 111 $150,000 to $200,000 Over $250,000 133 165 Over $200,000 (Source: US Census 2010 and 2000) The following chart shows the percent of Vail households by income. As part of the major redevelopment projects that took place in Vail Village and Lionshead from 2004 to 2012 the amount of commercial square footage has more than doubled (131% increase). This outcome was intentional and is based on the adopted goals of the Lionshead Redevelopment Master Plan as well as the Vail Village Master Plan. While an increase in commercial square footage generally Up to $24,900 19% $25,000 to $49,999 6% $50,000 to $74,999 11% $75,000 to $99,999 14% $100,000 to $149,999 25% $150,000 to $200,000 10% Over $200,000 15% Vail Household Income as Reported in the 2010 US Census For Reference: Annual Household Income Maximum Purchase Price $62,500 $187,500 $87,500 $375,000 $125,000 $625,000 $175,000 >$625,000 * Assumes 4.125% interest, 20% down payment, limited household debt or installment loan payments (Source: Town of Vail Community Development) 10/16/2012 7 Employee Housing Strategic Plan equates to higher sales tax collections it also increases the number of service sector jobs that exist in the Town of Vail, many of which are seasonal. (Source: Town of Vail Community Development) Consistent with commercial development and job creation in Vail, throughout Eagle County the largest employment industry is Accommodations and Food Services, employing 26% of all employees. 206,836272,191 479,027 0 200,000 400,000 600,000 Prior to Redevelopment in 2004 Net New 2004-2012Post Redevelopment 2012 Commercial Square Footage for 33 Major Redevelopment Projects 10/16/2012 8 Employee Housing Strategic Plan PLANNING TIMEFRAME The EHSP is based on a five-to-ten year planning horizon; it looks well into the future anticipating the needs for employee housing over time. The EHSP also contains identified “action steps” targeted for a one to three year period. These action steps will need to be evaluated annually and it is anticipated that they will be updated at least every three years as market conditions change. THREATS, WEAKNESSES, STRENGTHS & OPPORTUNITIES It is important to recognize and plan for the threats, weaknesses, strengths and opportunities that exist in the Town of Vail as well acknowledge the broader trends that impact Vail. Threats • Increasing Competition For Employees o Within the next ten-years estimates predict 2,000 new jobs will be created by development and redevelopment within the Town of Vail The majority of these jobs will be service sector o Eagle County job growth is predicted at 1.5% annually through 2013 and 2.5% annually from 2013 to 2015 (DOLA) o From 2015 to 2020 annual average job growth is likely to be higher, in the range of 3% - 4% or more (DOLA) o It is estimated that at least 7,500 new jobs will be created between Eagle Vail and Gypsum in the next ten years o The majority of the these jobs will be service sector o It is estimated the Ginn Development will add 1,000 new jobs o Lake County and Garfield County are both experiencing job growth o The oil and gas industry and mining generally pay substantially more than the service jobs being created in Eagle County o State of Colorado predicts overall job growth of 23% (DOLA) • State Demography Office shows a modest decline (0.5%)in population from 2010 data for Eagle County • Employee housing demand will increase due to demand from replacement workers of retirees (Eagle County Housing Needs Assessment Update, 2012) 10/16/2012 9 Employee Housing Strategic Plan • Data indicates 46.5% of all renters in Eagle County are cost burdened (paying more than 30% of their income for housing) (Eagle County Housing Needs Assessment Update, 2012) • 64% of Vail’s dwelling units are either partially occupied or vacant (2010 US Census) • Real Estate Trends o Real estate in the Town of Vail is expensive as compared to the rest of the region as well as compared to the national market o The conversion of locally occupied housing to second homes o The free market focuses on the housing desires of second homeowner o Increasing cost of construction o Vail real estate values continue to trend upward o Regional real estate values continue to be more affordable o The gap between what locally earned wages can afford and free market housing prices continues to increase, particularly in Vail • Unique Geographic Constraints o Vail Pass on the East o Dowd Junction on the West o Limited undeveloped land within the Town of Vail o Surrounded on the north and south by National Forest and Bureau of Land Management lands o Farthest employment center from the Eagle County population base • Cost of Commuting o The cost of gas continues to increase o Public transportation does not provide a viable alternative to all communities o The availability and cost of parking is prohibitive Weaknesses • Politics o Historical lack of political will for developing new employee housing o Previously, no clear policy direction for the provision of employee housing o Lack of Town owned land zoned for employee housing o There is not dedicated funding for employee housing o At the beginning, failure to plan for the housing needs of Vail employees 10/16/2012 10 Employee Housing Strategic Plan • Real Estate Market o Lack of free market homes affordable to local employees o Potential home buyers get less “bang for the buck” in Vail as compared to the region o Deed restricted housing developed does not provide a full spectrum of housing types (i.e., single family homes and seasonal rental units) • Lack of permanent employees hired by local businesses o The jobs being generated by redevelopment are predominately lower paying seasonal service jobs o Added challenge to establishing a diverse community Strengths • Vail has produced or caused to be produced 725 EHUs without requiring any ongoing general fund support and very little general fund expenditures • Community support for creating new employee housing • Clarity around the Town’s adopted housing goal • Regulatory requirements o Commercial Linkage o Inclusionary Zoning • Vacant land owned by the Town • Strong local financial conditions o Bonding capacity o Strong local tax base o Potential to invest in employee housing • Regular private reinvestment in development • Expanding partnership opportunities with local businesses and governments • Current deed restricted housing stock • The “Vail” brand 10/16/2012 11 Employee Housing Strategic Plan Opportunities • Town Initiated o Employee Housing Strategic Plan o Town owns significant vacant land o Rezoning of Town owned vacant land o Land Use Plan amendments o Annexation of land adjacent to the Town o Ability to reallocate existing revenue o Bonding capacity o Ability to go to the voters for a dedicated funding source o Partnerships with local employers o Public-Private partnerships for development o Potential United States Forest Service Land Swaps • Regional Opportunities o Other local governments are addressing the housing need as well o Significant vacant land o Partnerships with local employers o Public-Private partnerships for development o “The Valley Home Store” • Current stagnation in real estate values OBJECTIVES A. Provide housing to address needs generated by new development or redevelopment. It is documented and understood that new development will require additional employees and a goal of the EHSP is to provide for that housing. This goal is also referred to as “ Keep Up” in the EHSP; going forward the Town will attempt to address the increase in demand from new employees by requiring deed-restricted housing as a condition of new development or redevelopment. The Town will encourage developers to provide a range of housing choices for the entire spectrum of jobs that are being created by the new development. B. Respond to the existing affordable housing shortfall by pursuing a number of identified programs and development opportunities. 10/16/2012 12 Employee Housing Strategic Plan This goal is also referred to as “Catch Up” in the EHSP; it describes efforts to address deficiencies in the available housing inventory that have arisen over a period of years. C. Call for any deed-restricted housing that is required as a condition of development to be constructed at the time new development occurs. By dispersing year-round housing multiple objectives are met: neighborhoods are occupied throughout the year enhancing security and encouraging activity. Economies are achieved by having developers integrate deed-restricted housing at the time they are constructing other uses, and construction of new residences occurs at the time the demand is first triggered. D. Creation and maintenance of housing in Vail for emergency and key service workers. In Vail, where weather and the regional road system create periodic strains, this is especially important. The Town will also work with other businesses that provide services essential to municipal operations to encourage they have critical employees living within the Town of Vail. The Town will offer partnership opportunities to these types of employers. E. Actively address affordable housing for Vail workers to ensure that the community remains competitive in economic terms. With the number of Down-Valley jobs continuing to increase, there will be competition for workers; Vail will work to provide appropriate housing to ensure that the Town remains attractive in the regional job market. F. Increase and maintain deed-restricted housing within the Town to encourage the efficient use of resources by placing employees closer to their place of work. It is understood there is a reduced need for personal automobiles and reduced transit costs when home and work are in close proximity to one another. Also, there may be changes in workforce demographics that result in opportunities to reduce parking associated with affordable housing in selected locations. To the extent these opportunities can be realized, without negative impacts on the overall community, they will be explored. G. Planning for new employee housing will take jobs and wages into account. It is recognized that wages associated with a particular job influence housing demand. In both catch-up and keep-up programs the Town will work toward 10/16/2012 13 Employee Housing Strategic Plan providing a range of housing types at price points appropriate to the varying incomes of workers in Vail. It is recognized the free market provides limited opportunity for even the highest wage earners to live and work in Town and it is necessary to have a full range of employees in the community. Diverse housing opportunities for the broadest range of employees will enhance the community. H. Provide and plan for housing along with local and regional public transportation. The EHSP recognizes that these functions are intertwined and where deed- restricted housing exists, there will be a demand for transportation services. It is the goal of the Town to minimize overall transportation costs by housing employees in proximity to their jobs, and to also anticipate the projected costs of transportation (due to fuel and other scarce resources) in the provision of deed- restricted housing elsewhere in the region. POLICY STATEMENTS The Town of Vail will pursue three broadly described methods to achieve the Town’s housing goal. The Town will Impose Regulatory Requirements • Development will be required to address a portion of its housing demand within the Town of Vail; and • New development and redevelopment will be required to address a portion of its housing demand at the development site. Development and Acquisition Initiated by the Town • To address employee housing needs beyond the regulatory requirements for new development; and • To respond to the desire to promote a more diverse and vibrant local community. Form Regional Partnerships • These efforts will address employee housing needs beyond the regulatory requirements by actively seeking partnerships, including: o Public / Private, and o Multi Jurisdictional. These broad methods are further addressed in the Action Steps that are described in the following section. ACTION STEPS 10/16/2012 14 Employee Housing Strategic Plan The Town will continue to use tools already in place including: Regulatory Requirements: The “Linkage” or Commercial Jobs Generation Program Commercial Linkage The Town will review the current linkage program to evaluate whether it has been meeting the objectives of ensuring that new housing is being created to house a portion of the employee demand that is being generated by new commercial uses in the Town. At this time, no immediate changes in the overall requirements of the program are anticipated. However, the current requirement for new commercial development to provide employee housing for at least twenty percent (20%) of the employees generated may be reevaluated and the required percentage may be changed as a result of the review, the areas of impact may be modified, and the formulas for calculating job generation rates may be further refined. Additionally, an updated Rational Nexus will need to be completed on a periodic schedule. The Linkage Program provides housing to “keep up” with new demand as it is generated. Recognizing developable land in Vail as a limit on the community’s ability to provide EHUs, the Town amended its Commercial Linkage requirements to require all new construction and demo/rebuilds to provide at least one- half of their required mitigation on-site. Achieves Objectives A, C, E, F, and G. The “Inclusionary” Program Inclusionary Zoning The Town does not anticipate major changes to the Inclusionary Housing program at this time. However, the current requirement to restrict 10 percent (10%) of new residential square footage in high density areas to be employee housing with deed restrictions, may be reevaluated and the required percentage may be changed as a result of the evaluation, and/or the areas (zone districts) of impact may be modified. The Inclusionary Program provides housing to “keep up” with new demand as it is generated. Recognizing developable land in Vail as a limit on the community’s ability to provide EHUs, the Town amended its Inclusionary Zoning requirements to require all new construction and demo/rebuilds to provide at least one- half of their required mitigation on-site. 10/16/2012 15 Employee Housing Strategic Plan Achieves Objectives A, C, E, F, and G. Housing District Zoning Designation The Town currently has a “Housing District” zoning designation. As an action step to implement the Housing Plan, the Town will review the requirements of this district to ensure that it is fully meeting its intended purposes. That review will address the procedural requirements for the Housing District, land use provisions including density, parking and design standards, and provisions for density bonuses. The evaluation of the Housing District will ensure the Housing District provides optimal employee housing development. Achieves Objectives B, D, E, F, and G. Town Initiatives: Buy-Downs to Generate Deed-restricted Units The Town will actively pursue purchase of attractively priced units for imposition of an appreciation capped deed restriction, and subsequent resale. This technique for increasing the supply of permanently affordable housing is known as a “buy down.” It is recognized that this program will be highly market dependent, with limited applicability when the local residential market is surging, and becoming more attractive at times when there is a plateauing of prices. The Town will need to increase the allocation of funds to underwrite the costs associated with purchasing, deed restricting and reselling for-sale units. This is an opportunity to provide diverse housing, to serve the full spectrum of employees. It is important to update the parameters by which buy down units are considered so each buy down unit meets the established goals. Further, it is expected that there will be active involvement by the Housing Authority in overseeing this program. The Buy-Downs program provides housing to “catch up” with existing deficiencies and reduce market leakage. Achieves Objectives B, D, E, F, and G. Employee Housing Units Exchange Program The Town will conduct a review of the “dispersed housing units” that have been created under the density bonus provisions allowed by Town Code since 1982. It is estimated that 123 units were created under the existing program, typically ranging in size from 300 to 500 square feet. It is believed that many of these units are not being used to house employees as anticipated by the program. Although these units are covered by various types of deed restrictions, the 10/16/2012 16 Employee Housing Strategic Plan requirements are not uniform and in many cases are not meeting the objective of providing long-term dispersed employee housing. The Town will evaluate the current program and will consider a “deed restriction exchange program” as a part of this overall effort. The program would likely permit, at the initiation of the landowner, the exchange of small rental units for a larger for-sale, price appreciation capped employee housing unit. Guidelines for the program will be developed. It is expected that these standards will address recommended size of units, location, homeowner’s fees and other aspects of the program. Such a program has been recently tried in Vail. It is believed that other dispersed employee units, not currently in use, could be leveraged into permanently restricted units by using this technique; it could represent an important element of this overall plan. The Units Exchange Program is to increase the quality and the total quantity of employee housing within the Town of Vail. The Town adopted an Employee Housing Unit Exchange Program in order to eliminate EHUs that are under-occupied or unoccupied. The Employee Housing Unit Exchange Program requires the square footage of existing EHUs be increased either two or three times depending on the location of the existing EHU. This can improve the livability of EHUs as well as increase the number of EHUs in Vail. It is recognized that allowing EHU exchanges means certain neighborhoods in Vail may no longer have EHUs. While there are a limited number of EHUs eligible to participate in the Employee Housing Unit Exchange Program, the Program should be evaluated from time-to-time to ensure it is achieving its goal. Achieves Objectives B, E, F, and G. Incentive Zoning and Density Bonuses The Town will consider workforce housing objectives in all review processes that permit discretion. This means that the Town will work actively with developers as a part of the Housing District, Special Development District review processes and requested changes in zoning to not only meet the requirements of existing code, but to look for opportunities to go beyond code requirements to encourage additional workforce housing to be created. As a part of these review processes the Town will work actively with developers to create incentives to develop housing that exceeds the minimal requirements contained in the code. Additional density may be granted in selected locations through the appropriate review processes, and fee waivers and subsidies may be considered. The Incentives Zoning and Density Bonuses help Vail to “catch up” with existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, and G. 10/16/2012 17 Employee Housing Strategic Plan Review Rezoning and Vacant Land Opportunities The Town will regularly review existing codes and the vacant land inventory to identify opportunities to modify current programs that further support the goals of this Plan. The Review of Rezonings and Vacant Land provides “catch up” opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, and G. Town Participation in Developments Providing Deed-Restricted Housing The Town is prepared to actively participate in, and will seek partners to further the development of deed-restricted housing. Vail Commons, Middle Creek, Buzzard Park and Miller Ranch (located near Edwards in Eagle County) are four relatively large developments that have been completed through active Town participation. The existing developments serve households at different income levels. This has been, and will continue to be an objective of the Town, to serve the broad spectrum of need within the community rather than focusing on just a narrow category of income or household type. The Town participation provides “catch up” opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, G, and H. Explore Options for a Dedicated Funding Source for Employee Housing Initiatives The Town will explore options for a dedicated funding source to ensure adequate and ongoing resources for employee housing initiatives. It is recognized the Town will play an integral role in the creation of employee housing and dedicated dollars will aid in these efforts. The Town may pursue any of the following funding alternatives: a dedicated sales tax increase, a dedicated mill levy increase, dedication of the Real Estate Transfer Tax or any other funding source that may be identified. A dedicated funding source would provide “catch up” housing opportunities for Vail workers. Achieves Objectives B, D, E, F, G, and H. Create a Residential Conditions Base Line in the Town of Vail Conduct a comprehensive study of current units. Identify the type of units that exist (i.e. studio, one-bedroom, etc.), each unit’s current use (i.e. employee occupied, short-term rental, etc.), and the ownership of the unit (i.e. owner- 10/16/2012 18 Employee Housing Strategic Plan occupied, tenant occupied, etc.). Additionally, collect household demographic data to better understand the composition of the community. This information will allow Vail to better target programs to meet the needs of the community. This data will establish the baseline against which future employee housing success will be measured. The baseline conditions will support both “catch up” and “keep up” efforts. Achieves Objectives A, B, C, D, E, F, G, and H. Monitor the Rate of Free Market Employee Occupied Homes The Town will monitor the rate of free market homes occupied by local workers, and deed-restricted homes, on a regular basis. Conversions of free market residential units to second home owner units will be considered in Vail’s evaluation of progress toward the goals identified in this Plan. This monitoring will support both “catch up” and “keep up” efforts. Achieves Objectives B, E, F, and G. Conduct a Demographics Survey of Current Vail Residents In order to better understand the current demographics of the local population it is necessary to conduct a local survey. This will provide the Town with back ground information to consider in future housing policy and development decisions to ensure the Town is maintaining a character that is as diverse as it is today. This may occur in conjunction the Annual Community Survey. This information will support “catch up” efforts. Achieves Objectives A, B, D, E, F, and H. Establish a List of Essential Service Providers in the Town of Vail Establish a list of essential service providers in the Town of Vail to potentially partner with to ensure critical service workers live within the Town of Vail. This information will support “catch up” efforts. Achieves Objective D. Host Personal Finance and/or Home Buyer Education To encourage home ownership and create successful home owners it is important to provide information and educational opportunities to potential residents. This may also provide the encouragement current renters or existing home owners may need to take the next step in the housing market, freeing up 10/16/2012 19 Employee Housing Strategic Plan their existing unit to house other employees. This education may provide additional “catch up” opportunity. Achieves Objectives B, D, E, and F. Annual Review In order to ensure the EHSP is always current and is responsive to changing conditions, the Housing Authority shall review the EHSP annually and changes shall be periodically recommended to the Town Council. The purpose of these reviews shall be to ensure that progress on topics related to employee housing is being maintained and that adjustments in Objectives, Policies and Action Steps are made in a timely and specific manner. Achieves Objectives A, B, C, D, E, F, G, and H. Regional Efforts: In order to house employees associated with existing and anticipated jobs, workforce housing will be required throughout the County as well as in the Town. Vail will work actively with Eagle County officials and other municipalities to look for regional solutions to providing housing. Further, the need to provide transit services along with housing is also identified. When developing housing for Vail employees in Down-Valley locations, the cost of transit services will be considered in evaluations. While furthering regional housing is an objective of the Town, it will occur in concert with efforts in Vail, and in-Town deed-restricted housing will be a priority. The Town believes that there are a finite number of opportunities within Vail and these will be explored and pursued; Down-Valley development will not be undertaken if it results in not being able to participate in an opportunity within the Town’s boundary. Partnering opportunities for Down-Valley development will occur through partnerships that may include not only the County, but also the Town of Avon, Town of Minturn, Eagle County School District, the U.S. Forest Service, and potentially private developers. The Dowd Junction area and the Village at Avon are identified as particular areas of interest where development opportunities are to be explored. IMPLEMENTATION MATRIX 10/16/2012 20 Employee Housing Strategic Plan ACTION STEP WHO IMPLEMENTS 2013 to 2016 ESTIMATED COST Vail Market Study Update Community Development Department 2013 – Then every other year or as the market warrants $10,000 Develop New For- Sale Housing at Chamonix Town Council and VLHA 2013 Development loan of approximately $1.3 Million Refinance Timber Ridge Village Apartments Town Council and VLHA 2012/2013 $25,000 for consultant Develop New For- Sale Housing with ERW&SD - Snowberry & East Vail Town Council and VLHA 2012/2013 Potential partnership with Open Space & ERW&SD for land – Estimated $10,000 for land planning Partner with Eagle County to develop new EHUs Town Council and VLHA As opportunities are developed Varied based on partnership agreement Redevelop 2507 Arosa Drive Town Council and VLHA 2014 Cost to replace Town's Manager Residence (Estimated at $750,000) Update Fee-in- Lieu for Commercial Linkage & Inclusionary Zoning Community Development Department 2nd quarter of each year In House Annual EHU Compliance Verification Community Development Department 1st quarter of each year In House Annual Master Resale Lottery Community Development Department 2nd quarter of each year $1,000 for postage and advertising Establish Existing Conditions for All Units – Including household demographics Community Development Department and VLHA 2013 – then 1st quarter of every other year $5,000 for survey and mailing – allows the Town to monitor its progress toward adopted goals Monitor Rental and Vacancy Rates Community Development Quarterly In House 10/16/2012 21 Employee Housing Strategic Plan Establish Incentive Zoning to Ensure No Net Loss of Rental Housing Community Development Department, VLHA, PEC and Town Council 4th quarter 2013 In House Review Housing Zone District Community Development Department, VLHA, PEC and Town Council 1st quarter 2013 In House Review Commercial Linkage to ensure it is achieving the goal Community Development Department, VLHA and Town Council 1st quarter of every year In House Review Inclusionary Zoning to ensure it is achieving the goal Community Development Department, VLHA and Town Council 1st quarter of every year In House Updated Rational Nexus Study Town of Vail As needed $15,000 Monitor Total Number of Jobs in Town of Vail Town of Vail 1st quarter of every year $2,000 to purchase data Review zoning incentives/remove barriers for private development of EHUs Community Development Department, VLHA, PEC and Town Council 1st quarter of every year In House Review EHU Exchange Program Community Development Department, VLHA, PEC and Town Council 1st quarter of every year In House Implement the EHU Exchange Program Community Development Department and VLHA On-going - as proposed exchanges are submitted In House Identify Land/ Development Opportunities Community Development Department, VLHA and Town Council 2nd quarter 2013 In House 10/16/2012 22 Employee Housing Strategic Plan Prioritize Land/Development Opportunities Community Development Department, VLHA and Town Council 4th quarter 2013 Acquisition of Property ACTION STEP WHO IMPLEMENTS 2017 to 2022 ESTIMATED COST Redevelop Timber Ridge Village Apartments Town Council and TRAHC As market warrants To be determined Propose Development and/or Rezoning Town Council and VLHA Continuous Development Redevelop Gore Range Condos Town Council and VLHA As market warrants Cost of acquisition Pursue a Dedicated Funding Source VLHA Recommendation and Town Council Marketing Dollars Develop EHUs at Parking Structures Town Council and VLHA As market warrants To be determined Partner with Vail Resorts to build new EHUs Town Council and VLHA As market warrants To be determined Partner with Cascade Resort to build new EHUs Town Council and VLHA As market warrants To be determined Buy Down Units Town Council and VLHA Continuous $1,000,000 / year ACTION STEP 2023 and beyond Work with Sonnenalp to develop additional EHUs When Red Sandstone Elementary rebuilds their school - add EHUs 10/16/2012 23 Employee Housing Strategic Plan Build a second building of EHUs at Buzzard Park Acquire underdeveloped parcels for redevelopment Partner with Vail Valley Medical Center ACTION STEP WHO IMPLEMENTS WHEN ESTIMATED COST PROPOSED PRIORITY Establish and Fund VLHA Operating Budget Town Council and VLHA 4th Quarter 2008 To Be Determined A Establish Baseline "Existing Conditions" for All Units Town Council and VLHA 2009 $20,000 A Monitor Existing Conditions for All Units Town Council and VLHA 1st Quarter of Each Year (2010) $5,000 A Monitor Rental and Vacancy Rates Eagle County Continuous None A Conduct Housing Needs Assessment In conjunction with Eagle County 2010 $10,000 A Update Fee-in-Lieu for Commercial Linkage & Inclusionary Zoning Community Development Dept and Consultant 1st Quarter of Each Year $2,000 A Updated Rational Nexus Study Town of Vail Every Five Years (2011) $15,000 A Monitor Total Number of Jobs in Town of Vail Town of Vail 1st Quarter of Each Year $2,000 A 10/16/2012 24 Employee Housing Strategic Plan Host Finance/ Home Buyer Education Classes VLHA Two Per Year $500 A Buy Down Units Town Council and VLHA Continuous $1,000,000 / year A Establish Buy Down Unit Criteria Town Council and VLHA 4th Quarter 2008 None A Develop New For- Sale Housing at Chamonix Town Council and VLHA 2010 Potentially more than the value of the land A ACTION STEP WHO IMPLEMENTS WHEN ESTIMATED COST PROPOSED PRIORITY Develop Additional Rental Housing at Timber Ridge Town Council and VLHA 2011 Potentially the value of the land A Establish an EHU Exchange Program Town Council - Com Dev Dept - VLHA Recommendation 4th Quarter 2008 $10,000 for legal review A Implement the EHU Exchange Program Com Development Dept. and VLHA Continuous None A Review & Potentially Modify Commercial Linkage Town Council - Com Dev Dept - VLHA Recommendation 1st Quarter of Each Year None A Review & Potentially Modify Inclusionary Zoning Town Council - Com Dev Dept - VLHA Recommendation 1st Quarter of Each Year None A Identify Land/Development Opportunities Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year None A Prioritize Land/Development Opportunities Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year Acquisition of Property A 10/16/2012 25 Employee Housing Strategic Plan Propose Development and/or Rezoning Town Council and VLHA 2nd Quarter of Each Year Development B Review Housing Zone District Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year None B Establish Incentive Zoning to Ensure No Net Loss of Rental Housing Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year None B ACTION STEP WHO IMPLEMENTS WHEN ESTIMATED COST PROPOSED PRIORITY Pursue a Dedicated Funding Source Town Council and VLHA Begin 1st Quarter 2009 None in 2009 Marketing in 2010 B Monitor Free Market Real Estate Transactions VLHA and Consultant 1st Quarter of Each Year $5,000 B Establish List of Essential Service Providers Town Council and Town Staff 4th Quarter 2008 None C Create Partnerships with Essential Service Providers Town Council and VLHA Continuous None C ROLES AND RESPONSIBILITIES Roles and Responsibilities – The provision of deed-restricted housing is viewed as a partnership between various boards within the Town, each having important roles and responsibilities. As such, it is imperative that communications be established and maintained between boards to achieve the goal and objectives that are stated in this Plan. Efforts will be made to define, and periodically refine, the roles and associated communications between the bodies identified below. The Town Council shall act in accordance with Town codes and shall fulfill their decision-making functions as identified by local ordinances. Land Use Regulations 10/16/2012 26 Employee Housing Strategic Plan typically stipulate the review procedures to be followed in reviewing a proposed development. Ultimately, most reviews require an affirmative decision by the Town Council. Therefore, the Council will be the ultimate decision-making body for developments that require Council review. The Planning and Environmental Commission and the Design Review Board also play an important development review role. These two boards will review development proposals, consistent with the requirements of codes and ordinances, to ensure that development is in compliance. The Vail Housing Authority (V.L.H.A.) plays a critical role in ensuring that housing for long-term residents and seasonal employees is available in the Town. This in turn, enhances the quality of life for local residents, and improves the economic viability of the area. The V.L.H. A. mission: The V.L.H. A. will play an advisory role to the Town Council and the Planning and Environmental Commission on matters related to housing policy and development. The Authority will use this Housing Plan as a working document to guide future efforts. As identified in the EHSP, the Authority will work to carry out the Action Steps over the next three years. The Authority’s priorities will be those contained in the EHSP as it is adopted, and as it may be modified following subsequent annual reviews. GLOSSARY The following definitions are applicable for the terms used in this Plan. Area Median Income (AMI) Limits – most communities establish income limits for the programs they administer based on the area median income (AMI) for the area according to household size, which are adjusted annually by the Department of Housing and Urban Development (HUD). Four different income categories are defined for various programs and policies: 1. Extremely low-income, which is less than 30 percent of the median family income; 2. Very low-income, which is between 30 and 50 percent of the median family income; 3. Low-income, which is between 50 and 80 percent of the median family income; 4. Middle income, which is between 80 and 120 percent of the median family income; and 5. Above middle income, which is over 120 percent of the median family income. Eagle County Area Median Income % of Median Income for Area No. of Persons 200% 140% 120% 100% 80% 50% 30% 10/16/2012 27 Employee Housing Strategic Plan 1 $118,800 $83,160 $71,280 $59,400 $47,520 $29,700 $17,820 2 $135,700 $94,990 $81,420 $67,850 $54,280 $33,925 $20,355 3 $152,700 $106,890 $91,620 $76,350 $61,080 $38,175 $22,905 4 $169,600 $118,720 $101,760 $84,800 $67,840 $42,400 $25,440 5 $183,200 $128,240 $109,920 $91,600 $73,280 $45,800 $27,480 6 $196,800 $137,760 $118,080 $98,400 $78,720 $49,200 $29,520 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 30% $17,050 $19,500 $21,900 $24,350 $26,300 $28,250 $30,200 $32,150 50% $28,400 $32,450 $36,500 $40,550 $43,800 $47,050 $50,300 $53,550 60% $34,080 $38,940 $43,800 $48,660 $52,560 $56,460 $60,360 $64,260 80% $41,900 $47,900 $53,850 $59,850 $64,650 $69,450 $74,200 $79,000 100% $56,800 $64,900 $73,000 $81,100 $87,600 $94,100 $100,600 $107,100 120% $68,160 $77,880 $87,600 $97,320 $105,120 $112,920 $120,720 $128,520 140% $79,520 $90,860 $102,200 $113,540 $122,640 $131,740 $140,840 $149,940 160% $90,880 $103,840 $116,800 $129,760 $140,160 $150,560 $160,960 $171,360 Catch-Up Housing – Housing needed to “catch-up” to current deficient housing conditions. In this Plan, catch-up housing needs are defined by current resident households reporting housing problems (overcrowded, cost-burdened and/or living in substandard housing conditions), current renters and owners looking to purchase a home and in-commuters that would like to move to Vail. Catch-up housing is generally addressed through local city development initiatives, non-profits and housing groups and public/private partnerships. Housing Continuum, The – As illustrated below, it is possible to estimate the number of resident households in the Town of Vail at various income levels. Vail’s planning is based on addressing the needs of households of different incomes, recognizing that there is a need to ensure housing for a diversity of households. 10/16/2012 28 Employee Housing Strategic Plan EXISTING DEED RESTRICTED EMPLOYEE HOUSING Inclusionary Zoning – requires a minimum percentage of residential development be provided to serve local employees as part of new residential developments (10 percent in Vail). Inclusionary zoning is a housing production obligation based on the community’s need for employee housing as related to many factors, including a decreasing developable supply of land, rising home values, insufficient provision of housing affordable to residents by the market, etc., in addition to any direct employee generation impacts of development. Keep-Up Housing – Housing units needed to keep-up with future demand for housing. In this Plan, keep-up housing needs focuses on new housing units needed as a result of job growth in Vail and new employees filling those jobs. Keep-up housing is often Over 140% AMI 31.8% <=50% AMI 401 HH/16.4% 50-80% AMI 345 HH/14.1% 80-100% AMI 425 HH/17.4% 100-140% AMI 496 HH/20.3% <=50% AMI Max Rent $913 Max Price $124,796 50-80% AMI Max Rent $1,346 Max Price $180,238 80-100% AMI Max Rent $1,825 Max Price $241,432 120-140% AMI Max Rent $2,738 Max Price $334,741 2007 Vail Households 50% AMI $36,500 80% AMI $53,850 100% AMI $73,300 140% AMI $109,500 Over 140% AMI Rent Over $2,738 Price Over $334,741 <=50% AMI Max Rent $913 Max Price $124,796 50-80% AMI Max Rent $1,346 Max Price $180,238 80-100% AMI Max Rent $1,825 Max Price $241,432 100-140% AMI Max Income $109,500 Max Rent $2,738 Max Price $334,741 2007 Vail Households Over 140% AMI Income Over $109,500 Rent Over $2,738 Price Over $334,741 Middle Creek Rent 142 Units Less than 60% AMI Buzzard Park Rent 24 Units Town Employee Typically less than 120% AMI Vail Commons, Red Sandstone, North Trail For Sale 77 Units 100% AMI or less Miller Ranch For Sale 282 Units 60-120% AMI 50% AMI $36,500 80% AMI $53,850 100% AMI $73,300 140% AMI $109,500 10/16/2012 29 Employee Housing Strategic Plan addressed by the existing free-market, as well as regulatory requirements or incentives to produce housing that is needed and priced below the current market. Levels of Homeownership – When discussing affordability of properties by Area Median Income (AMI) level (defined above) and the types of homes households among different AMI groups are seeking; reference is made to a couple different stages of homeownership. This includes: 1. Entry-level ownership/first-time homebuyers: These are households typically earning in the lower to middle income range. In Vail, these are households earning 50 to 100 percent of the AMI. These include households that currently rent (or otherwise do not own a home) and are looking to purchase their first home. 2. Move-up buyers: These are households earning in the middle to upper income range (about 100 to 120 percent AMI or higher) that may currently own a home and are looking to purchase a new or different home for a variety of reasons (relocating, growing family (e.g., having children), shrinking family (e.g., empty- nesters), etc.). Mean – the average of a group of numbers, which is the sum of all the data values divided by the number of items. Median – the middle point in a data set. ATTACHMENTS A. The Economic Value of the Town of Vail’s Investment in Employee Housing, dated March 29, 2012. Prepared by BBC Research & Consulting. B. Economic Indicators: 2012 dated August 2012. Prepared by Economic Council of Eagle County. C. Chamonix Market Update, dated February 28, 2011. Prepared by Economic & Planning Systems, Inc. D. Eagle County Housing Needs Assessment Update, draft dated 2012. Prepared by Venturoni Surveys & Research, Inc. and Economic Council of Eagle County. (The final version will be added as an attachment to the EHSP.) 10/16/2012 30 Employee Housing Strategic Plan RESOLUTION NO. 20 Series 2008 A RESOLUTION ADOPTING THE TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the “Town”), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the “Charter”); and WHEREAS, the Town has determined that no less than thirty percent (30%) of Vail’s workforce should be provided deed restricted employee housing within the Town limits; and WHEREAS, the Council has determined that in order to achieve the established goal it is critical to create an employee housing strategic plan establishing and clarifying the objectives and action steps essential to achieve the stated goal; and WHEREAS, the Vail Local Housing Authority and Council developed the Employee Housing Strategic Plan over a period of six months that outlines the goal, objectives and action steps; and WHEREAS, the Vail Economic Advisory Committee provided input and direction on the Employee Housing Strategic Plan at their May 13, 2008, and June 10, 2008, meetings; and WHEREAS, the Planning and Environmental Commission provided input and direction on the Employee Housing Strategic Plan at their August 25, 2008, Public Hearing; and 10/16/2012 31 Employee Housing Strategic Plan WHEREAS, the Council supports the implementation of the Vail Employee Housing Strategic Plan; and WHEREAS, the Employee Housing Strategic Plan will direct policy and budget decisions in order to achieve the community’s stated goal; and WHEREAS, it is the intention of the Council and the Housing Authority to implement the Employee Housing Strategic Plan over the next three years. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: 1. The Council hereby approves the Town of Vail Employee Housing Strategic Plan, dated September 2, 2008, attached hereto as Exhibit A. 2. The Council hereby finds: A. That the Employee Housing Strategic Plan is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, B. That the Employee Housing Strategic Plan furthers the general and specific purposes of Zoning Regulations; and, C. That the Employee Housing Strategic Plan promotes 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 3. This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, APPROVED AND ADOPTED this 2nd day of September, 2008. ______________________________ Richard D. Cleveland, Town Mayor ATTEST: Lorelei Donaldson, Town Clerk 10/16/2012 32 Employee Housing Strategic Plan PROCESS TIMELINE Vail Town Council May 6, 2008 Work Session Affirm housing goal and purpose of the EHSP Review proposed actions and timeline July 1, 2008 Work Session July 15, 2008 Special Work Session Identify and affirm objectives and action steps Confirm overall direction of the EHSP August 19, 2008 Work Session Identify and affirm the SWOT analysis Affirm overall direction of the EHSP September 2, 2008 Adopt the Town of Vail Employee Housing Strategic Plan August 21, 2012 Work Session Review proposed actions and proposed direction Planning and Environmental Commission 10/16/2012 33 Employee Housing Strategic Plan August 25, 2008 Work Session Provide feedback on the EHSP Vail Local Housing Authority March 24, 2008 VLHA Work Session Met with consultant (Chris Cares) Dusted off previous work towards a TOV Strategic Plan April 10, 2008 VLHA Work Session Review and update proposed actions and timeline April 24, 2008 VLHA Work Session Further refine actions and timeline for Council meeting May 13, 2008 Vail Economic Advisory Council Discussion of Housing Objectives May 15, 2008 VLHA Work Session June 10, 2008 Vail Economic Advisory Council Further discussion of Housing Objectives June 10, 2008 VLHA Work Session June 24, 2008 VLHA Work Session July 8, 2008 VLHA Work Session July 22, 2008 VLHA Work Session SWOT Analysis August 12, 2008 VLHA Work Session SWOT Analysis August, 2008 Meet with Local Employers August 26, 2008 VLHA Work Session Review Planning Commission feedback Implementation Matrix Review August 23, 2012 VLHA Work Session August 28, 2012 VLHA Work Session Implementation Matrix Update September 6, 2012 VLHA Work Session Implementation Matrix Update 10/16/2012 34 Employee Housing Strategic Plan September 25, 2012 VLHA Work Session 10/16/2012 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 2 Eagle County Population Growth 1980-1990: 65% Growth 1990-2000: 90% Growth 2000-2010: 25% Data Source: Colorado State Demographer September 2011 Projected Growth 2010-2020: 37% 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 3 Population by Town Data Source: Colorado State Demographer 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 4 An Aging Population Eagle County is aging. While the younger population (under 24) remains at about a third of WKHSRSXODWLRQWKH³IDPLO\ DJH´JURXSRI-59 is projected to drop from 60% to RIWKH&RXQW\¶VUHVLGHQWV from 2000 to 2020. While all age groups gain population by 2020, the real growth comes in the older adult segment. Adults 60 and older were about 5% of the population in 2000, and that segment is expected to make up 17% of the total in 2020. Aging in place and by in- migration contribute to growth in the older age groups. Data Source: Colorado State Demographer September 2011 estimates 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 5 Eagle County Households Data Source: Colorado State Demography Office 2012 Households Total Households 2010 19,209 Household Population 2010 52,071 Average Household Size 2.71 Housing Units Total Housing Units 2010 31,333 Vacant Household Units 12,124 Household Vacancy rate 0 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 6 Demographics/Race & Ethnicity The Hispanic population continues to grow in Eagle County. Two- thirds of the County (67%) is white, non- Hispanic. Other races make up less than 4% of the population. Data Source: Colorado State Demographer 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 7 Demographics/Education Data Source: 2006-2008 American Community Survey 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 8 Demographics/Income Data Source: 2010 Census Small Area Income and Poverty Estimates 7% drop from 2009 Estimate 10/16/2012 10/16/2012 10/16/2012 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 12 Eagle County Retail Sales (in thousands) Data Source: Colorado Department of 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 13 Eagle County: State Sales Tax Collections (in thousands) Data Source: Colorado Department of Revenue 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 14 Top Employers EMPLOYER # Employees (Range) INDUSTRY Vail Resorts > 1500 Recreation, Real Estate, Accommodations & Food Services Eagle County School District 500-1000 Education Vail Valley Medical Center 500-1000 Medical Eagle County 400-500 Government Vail Cascade Hotel 300-400 Accommodations & Food Services Ritz Carlton Hotel 300-400 Accommodations & Food Services WalMart 300-400 Retail Sonnenalp Resort 200-300 Accommodations & Food Services Town of Vail 200-300 Government Vail Marriott 200-300 Accommodations & Food Services Data Source: Quarterly Census of Employment & Wages 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 15 Real Estate Values - Eagle County Data Source: Land Title Guarantee 2008 2009 2010 2011 2012 through June Number Sold 1,606 938 1,250 1,357 692 Total Dollar Volume ¶V $2,234,919 $898,444 $1,497,172 $1,158,049 $662,734 Mean Sales Price Single Family: $1,455,774 $1,159,484 $1,264,591 $1,003,971 $1,220,924 Multi-Family $1,509,830 $831,688 $1,150,597 $859,243 $878,256 Vacant Res. Land $562,779 $393,903 $409,575 $350,346 $308,260 Commercial $1,262,929 $1,168,416 $1,228,594 $851,585 $825,394 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 16 Residential Real Estate - Local Markets Data Source: Land Title Guarantee Company Gypsum Eagle Avon Vail Village Number Sold January - June 2010 41 72 104 39 January - June 2011 59 67 66 31 January - June 2012 95 89 49 44 Total $ Volume January - June 2010 $27,395,300 $36,421,900 $56,753,834 $129,239,600 January - June 2011 $13,811,395 $25,011,200 $29,846,900 $115,559,100 January - June 2012 $21,121,088 $29,767,800 $28,105,700 $139,427,400 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 17 Residential Real Estate Values - Local Markets Data Source: Land Title Guarantee Company Gypsum Eagle Avon Vail Village Mean Sales Price January - June 2010 $668,178 $505,860 $545,710 $3,313,836 January - June 2011 $234,091 $373,301 $452,226 $3,727,713 January - June 2012 $222,327 $334,470 $573,586 $3,168,805 Median Sales Price January - June 2010 $330,000 $315,750 $397,250 $2,162,000 January - June 2011 $210,000 $305,000 $399,999 $2,500,000 January - June 2012 $200,000 $280,000 $275,000 $1,975,000 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 18 Enplanements Data Source: Eagle County Airport 218,105 232,250 214,715 182,673 204,889 194,190 134,309 thru July 10/16/2012 Economic Council of Eagle County 2012 Economic Indicators 19 Eagle County School Enrollments Data Source: Colorado Depa rtment of Education 5,724 5,824 6,185 6,181 6,344 10/16/2012 Final Report The Economic Value of the Town of Vail’s Investment in Employee Housing Vail Local Housing Authority 10/16/2012 Final Report March 29, 2012 The Economic Value of the Town of Vail’s Investment in Employee Housing Prepared for Vail Local Housing Authority 75 South Frontage Road Vail, Colorado 81657 Prepared by BBC Research & Consulting 1999 Broadway, Suite 2200 Denver, Colorado 80202-9750 303.321.2547 fax 303.399.0448 www.bbcresearch.com bbc@bbcresearch.com 10/16/2012 Table of Contents BBC RESEARCH & CONSULTING i INTRODUCTION Background ............................................................................................................................... IN–1 The Employee Housing Issue ..................................................................................................... IN–1 Report Objectives ...................................................................................................................... IN–2 Report Organization .................................................................................................................. IN–2 EXECUTIVE SUMMARY: The Economic Value of the Town of Vail’s Investment in Employee Housing Vail Employee Housing ............................................................................................................. ES–1 Approach ................................................................................................................................. ES–2 Other Perspectives .................................................................................................................... ES–4 The Vail Community ................................................................................................................. ES–5 I. Vail Demographic Data and Employee Housing Inventory Vail Demographics ...................................................................................................................... I–1 Vail Employee Housing Market Considerations ............................................................................ I–2 Vail Employee Housing Rental Rates ............................................................................................ I–6 II. The Economic Value of Employee Housing Methodological Options ............................................................................................................. II–1 BBC Approach ............................................................................................................................ II–2 Direct Economic Value of Employee Housing ............................................................................. II–5 Other Perspectives ...................................................................................................................... II–9 Vail—A Resort Economy ............................................................................................................ II–10 10/16/2012 EXECUTIVE SUMMARY: The Economic Value of the Town of Vail’s Investment in Employee Housing 10/16/2012 BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 1 EXECUTIVE SUMMARY The Economic Value of the Town of Vail’s Investment in Employee Housing This study documents the current inventory and use of employee housing in Vail and calculates the cost and benefits of this investment from multiple community perspectives. Vail Employee Housing Over the past 25 years, the town of Vail has mandated or incentivized the creation of 727 employee housing units. These units have enjoyed high levels of occupancy even during periods of slow economic activity. Vail employee units house an estimated 1600 employees, approximately 75 percent of which (1200 persons) work in the town of Vail. Because individuals often hold multiple jobs, these 1200 Vail employees fill over 1500 jobs, nearly 20 percent of Vail’s estimated 9100 positions. The majority of Vail’s employee housing attracts entry level, seasonal employees but the town also supports a number of deed-restricted, for-sale units that house longer term residents and families. Remarkably, the Vail community has produced this housing inventory without requiring any ongoing general fund support and very little general fund expenditures. This experience is in marked contrast to other mountain resorts that often use ongoing sales, real estate transfer or property taxes revenues to supporting employee housing. The projects’ mortgage debt is about $18.0 million (net of cash reserves), but all operating costs and debt service are covered by annual rents and lease revenue. The majority of the current housing stock was created by opportunistic investment, development requirements, or partnership by the town over a period of multiple decades. Deed-restricted housing is not the only component of local employee housing. Many workers, roughly 43 percent of persons who live and work in Vail, live in private rental housing or own their own homes. Nevertheless the disparity between Vail housing costs and local salary levels makes ownership an unrealistic option for the vast majority of residents. Many resident homeowners purchased their units years ago and it is likely that these units will eventually be sold and transfer into temporary occupancy use—further exacerbating the town’s housing /jobs imbalance. From a Vail community perspective the quantifiable economic value of employee housing lies in three areas: the costs avoided by businesses of having to induce workers from considerable distance; the additional town retail spending by employee-local residents; and the public costs avoided in not having to find a local parking solution for additional commuting workers. 10/16/2012 PAGE 2, E XECUTIVE S UMMARY BBC RESEARCH & CONSULTING The employee housing benefits calculated in this report are summarized in Exhibit ES-1 below. Figure ES-1. Summary: Valued Vail Employee Housing Source: BBC Research & Consulting. There are additional, non-economic benefits associated with employees being housed within Vail, ranging from lessoned seasonality to the invigoration of the community’s public life. These benefits are also described in this report. Approach Placing a value on the provision of employee housing presents the predictable challenges of valuing a public service where there is an uneven distribution of costs and benefits—the same challenge one faces in attempting to value public parks, public parking or even general public services. Assumptions. This study incorporates certain assumptions and understandings regarding Vail employee housing and its role in the unusual economy of a mountain resort community. These points are described fully in Section II of this report and are summarized below.  Without employee housing Vail businesses would likely still attract workers, particularly in the current economic environment, but attraction and retention would be more expensive; employee turnover would be higher; and employee flexibility to work irregular hours or multiple jobs would be diminished.  The provision of affordable employee housing requires some form of public investment, which implies that tax payers—or some subset of tax payers—are in some degree supporting this amenity. This support can be direct, such as public acquisition of land, or indirect, such as regulatory requirements.  The provision of employee housing can displace other forms of development, which under many circumstances may be of higher economic value.  The economic value of employee housing varies depending upon the nature of the individual, business interest or taxpayer considering the issue. Similarly, the economic value of employee housing is not consistent from year to year—it varies considerably depending upon background economic conditions.  Employee housing enhances the Vail community’s ability to provide high levels of guest services. Deed-restricted, for-sale housing is particularly valuable in allowing Vail residents to stay in Vail and participate in civic life. CategoryValue Business costs avoided$12.6 million per year New retail spending $6.0 million in annual retail sales ($240,000 in sales tax @ 4.0%) Parking expansion $9.0 million 10/16/2012 BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 3 Business Savings. The existence of a substantive amount of employee housing means that Vail businesses are relieved of the costs associated with compensating employees for lengthy and costly commutes. In essence, Vail businesses are competitively advantaged when seeking employees, not disadvantaged by the difficult and time consuming commute from down valley residences. Vail businesses also save on employee training and turnover expenses and are more likely to attract a reliable workforce with the availability of appropriate local housing. Figure ES-2 summarizes employee housing associated cost savings for each segment of the Vail economy. Vail government is a significant beneficiary for the same reasons that businesses benefit from employee housing, but also for the avoided costs of finding parking options for the 1200 additional workers who would be commuting into town. Figure ES-2. Direct Impacts of Vail Employee Housing Source: BBC Research & Consulting BBC estimates that the business community benefits in the amount $10,530 per worker/year for each of the 1200 Vail housed/ and Vail employed individuals using employee housing. This amounts to $12.6 million per year in cost-of-business savings. In addition, employees residing in Vail are expected to add roughly $6.0 million in additional retail sales as a result of increased local spending. Even with effective bus transit, many workers commute to Vail jobs by automobile. By housing workers locally, the town of Vail avoids capital spending for parking of approximately $9.0 million and the accompanying annual management costs associated with parking operations — even presuming some form of parking solution was a prospect. Community risks. Although Vail operates its current employee housing stock without annual costs to the community, it should be noted that the community has potential indirect risk for an $18.0 million debt obligation associated with the largest housing project. It should also be noted that the provision of employee housing represents a lost opportunity to develop additional private market units on the same land. Direct Impacts of Vail Employee Housing Vail Businesses Positive: Employee cost savings –Wages and salaries –Training/turnover –Skills and quality of labor force –Eco bus pass Additional local spending by employee residents Vail Employees Positive: Reduced cost of living –Rents –Commute time –Commute costs Ability to hold multiple jobs Town Government Positive: Employee cost savings –Wages and salaries –Training/turnover –Skills and quality of labor force Reduced parking, construction and operational costs –Capital investment/risk –Bond risk –Lost opportunity for higher valued development on town- owned property Negative: 10/16/2012 PAGE 4, E XECUTIVE S UMMARY BBC RESEARCH & CONSULTING Other Perspectives The provision of employee housing has broad economic consequences, beyond the immediate economic values described above, for all Vail property owners, guests and residents. These are summarized in Figure ES-3. Figure ES-3. Perspectives on Vail Employee Housing  Residential property owners. As noted above in Figure ES-3, property owners seeking to rent privately owned residential units currently have to compete with employee housing. Currently, the presence of over 700 units of lower priced housing likely dampens the potential rental value of individually owned rental units. Conversely, all residential property owners also benefit from employer housing because exaction requirements on new or remodeled housing drive up the cost of new units, effectively pulling up the price of all units.  Commercial property owners. Commercial property owners are generally benefited by community investment in employee housing as it increases the costs of potential new competition, because of the inclusionary zoning and commercial linkage requirements, and reduces the labor costs of operations for commercial tenants.  Undeveloped or underdeveloped land owners. Land owners, properties with redevelopment potential, and developers are burdened by inclusionary zoning, commercial linkage and employee housing requirements which represent an immediate development expense that must be factored into development feasibility calculations. Other Perspectives on Vail Employee Housing Private Rental Property Owners Negative: •Subsidized Competition All Residential Property Owners Positive: •Increased cost of competitive new developments All Commercial Property Owners Positive: •Increased cost of competitive new development Land Owners and Developers Negative: •Increased cost of competitive new development Positive for all:Increased functionality of the resort Improved visitor experience 10/16/2012 BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 5 The Vail Community Finally, and perhaps most importantly, employee housing presents widespread general benefit to all property owners, residents, visitors and second home owners who have a stake in the success of Vail. Generally, an improved quality of life for employee residents, reduced commuting times, year round presence of residents and housing cost savings, all add to a more stable employee base and a better functioning community, which results in:  An improved guest experience—the most basic product sold by Vail;  Better positioning against other resorts competing for a quality workforce and the most discriminating guests;  Reduction in the seasonality of local businesses;  Increased vitality, diversity and “real town” authenticity for the town;  Increased community participation (e.g., volunteer activities, town boards); and  Enhanced ability for younger residents to stay in Vail and grow into higher-level employment and community leadership positions. It is not a conceptual leap to assume that a better community with a more stable and participatory workforce translates into better guest services. Visitors value their interaction with local residents and workers who enjoy their town and communicate pride in their community help create the experience that differentiates engaging resort towns from simply undifferentiated commercial resorts. As the Vail community matures, many long time residents will retire and their homes will likely transfer into second home status, further eroding the town’s private housing stock. The economic value of employee housing will grow as the private ownership stock is diminished and the diversity of employee housing, including additional deed-restricted, family and for-sale units, expands. In sum, over a two decade period, the town has created an enviable employee housing stock with very modest costs to the general taxpayers. Operation of the town’s 727 units puts no burden on the general fund. The Timber Ridge project, the town’s largest investment, has been a time consuming effort but it is still operated under contract by a private entity and current rents cover all operating costs and debt service. The town of Vail has been remarkably successful in creatively stimulating the development of employee housing without incurring substantive public expense. Vail’s employee units save the business community about $12.6 million per year in operating expense, generate nearly a quarter million in sales taxes for the general fund, and allow the town to avoid a burdensome investment in finding parking solutions for 1200 employees. Employee housing has provided the town a valuable insurance policy during tumultuous economic times and demonstrated value during both rising and declining economies. No other mountain resort can claim this level of benefit with so little direct cost. 10/16/2012 INTRODUCTION 10/16/2012 BBC RESEARCH & CONSULTING INTRODUCTION, PAGE 1 INTRODUCTION This study quantifies the economic costs and benefits of the town of Vail’s investment in employee housing. Background The majority of Colorado resort communities have some form of employee housing stimulation or development program. Some resorts marshal very aggressive housing efforts, offering multiple forms of employee housing with financial support from ongoing general tax revenues as well as exactions and fees placed on new development. Other communities support more modest programs, including third-party efforts by not-for-profit organizations and grants or loans from state housing authorities or federal programs. Employee housing provision comes by many names, including affordable housing, workforce housing, community housing and deed-restricted housing. Over a 30 year period, the town of Vail has constructed or caused to be constructed nearly 750 units of deed-restricted, employee housing. In 1991, the town of Vail established the Vail Local Housing Authority to better support, manage and promote Vail employee housing efforts. The town acknowledged the community benefits of maintaining deed restricted housing with its adoption of the 2008 Employee Housing Strategic Plan and in its ongoing commitment to employee housing provision. For a number of years, the town has pursued a goal of providing deed restricted housing for 30 percent of the community’s workforce through both public and private sources. As of December 2011, the town of Vail managed, or otherwise assisted, 727 employee units, providing in-town housing for approximately 1,600 employees. In addition, some local businesses provide their own housing assistance privately, some Vail workers own their own homes and many private owners rent units long-term to local employees. Employee Housing Trends During the mid 2000’s, a period of very strong resort economic expansion, employee housing was largely viewed as a highly valued asset and a fundamental infrastructure requirement for the functioning of the Vail resort community. This view is widely shared among Vail’s peer communities. With the downturn in the economy, the production of employee housing associated with new development has slowed, employment demands have diminished and private owners have increased the supply of private rental units. Concurrently, as long time residents exit the workforce, their personal housing is most often sold into the second home market. And, although housing rental and ownership costs have declined in recent years, Vail’s private housing values remain unobtainable for the great majority of local workers. Throughout the mountain resorts, policy makers are revisiting the question of what constitutes an appropriate level of the community investment and what form of housing represents the most valued community investment. 10/16/2012 PAGE 2, INTRODUCTION BBC RESEARCH & CONSULTING Report Objectives The objective of this analysis is to characterize and quantify the economic costs and benefits of Vail’s employee housing for the community’s residents, property owners and businesses. It is recognized that the benefits and costs of providing public investment in employee housing do not fall evenly across all parties in the Vail community. As a result, it is difficult to make simple pronouncements or calculations about the value of this type of housing. This report offers a conceptual framework for identifying the community costs and benefits of housing, and ultimately attempts to quantify the economic costs and benefits from multiple community perspectives. The intention here is to bring objective information to ongoing community discussion about the value of this investment and the issue as to whether employee housing remains an appropriate town investment with acceptable community returns. Report Organization This analysis has three sections. An Executive Summary follows this introductory section. Section I provides background data on Vail socioeconomic conditions and describes the current employee housing situation, including a derivation of the number of local workers generated by Vail’s employee housing infrastructure. Section II offers a methodological discussion and calculations of employee housing value from different perspectives within the community. 10/16/2012 SECTION I. Vail Demographic Data and Employee Housing Inventory 10/16/2012 BBC RESEARCH & CONSULTING SECTION I, PAGE 1 SECTION I. Vail Demographic Data and Employee Housing Inventory This section provides basic economic, demographic and employment data for the town of Vail, which are used for cost and benefit calculations developed in Section II. An inventory, description and accounting of Vail’s employee housing is also provided. Vail Demographics Based on the 2010 U.S. Census, the town of Vail has 7,230 housing units and a population of 5,305 residents. Approximately 2,604 units are occupied by full time residents Tenancy of these units is in near even division between renters (1341 rental units) and owner occupants (1263 owned units). The remaining units (4,626) are held for seasonal or occasional use, available for sale or rent, recently sold or unoccupied. A significant share of Vail resident households are occupied by retirees or persons employed elsewhere in the country—skewing traditional worker per household ratios and similar measures. A 2008 presentation entitled “Shaping the Future of Eagle Valley,” prepared by the Eagle County Economic Development Council calculated that 1,500 households in Vail have at least one locally employed individual, which is in line with estimates derived from the town’s periodic household surveys. Housing and population data from the town of Vail, U.S. Census Bureau and American Community Survey are shown below. Figure I-1. Vail Housing and Population Data Note: ^ Census 2010. ^^ Town of Vail. * ACS 2006-2010. ** ACS 2005-2009. Source: Vail PowerPoint Presentation, “Shaping the Future of Eagle Valley”, January 17, 2008; Eagle County Economic Development Forum ; U.S. Census 2010; and American Community Survey 5-year estimates. Category Population5,305^ Dwelling units in Vail Full-time occupied units2,604 ^ Owner-occupied (1,263) Renter-occupied (1,341) "Vacant" housing units4,626 ^ Seasonal units (3,840) For rent or sale, sold or unoccupied (786) Total dwelling units in Vail7,230 ^ Employee households in Vail1,500^^ Median household income$64,859* Median rent$1,266* Percent of renters paying >30% of income48.7%** Data It is noted that U.S. Census resort data—largely because of the April (off season) counting period and the difficulties in determining tenancy characteristics of individual units—are often of questionable accuracy. 10/16/2012 PAGE 2, SECTION I BBC RESEARCH & CONSULTING Figure I-2 shows additional economic and demographic data that have been drawn from local surveys and other town sources. Figure I-2. Vail Employment Source: Town of Vail PowerPoint Presentation, “Shaping the Future of Eagle Valley”, January 17, 2008. Category Data Number of jobs in Vail9,100 Average number of jobs per person1.3 Individuals employed in Vail7,000 Employees living in Vail30% Employees living between Vail and Edwards34% Employees living outside of Vail to Edwards36% There is very little statistical data that fully captures socio-demographic changes occurring with the recent economic downturn and Vail’s apparent economic resiliency in comparison with the rest of Eagle County. The Eagle County Economic Development Council (ECEDC) reports that county- wide employee counts declined 20 percent between 2008 and 2010. It is likely that the number of jobs and the number of individual employees have declined from the levels suggested above, although the strength of winter and summer tourism markets in 2010 and 2011 has likely helped Vail sustain its employment base more effectively than the remainder of Eagle County. The data in the above Figure I-2 suggests that roughly one-third of jobs in Vail are filled by Vail residents and similar proportions are filled by persons either living between Vail and Edwards (34%) or living elsewhere down valley (36%). Multiple job holdings are common and a large share of the jobs in town pay entry level wages. Vail Employee Housing Market Considerations Vail employees live in private rental and private employee-owned housing units as well as a variety of deed-restricted employee units. In addition, a number of businesses own or control rental housing that they reserve for their own employees. As noted above, approximately 30 percent of Vail jobs, or roughly 2800 positions, are filled by persons working and living in Vail. The remaining positions are filled by employees residing elsewhere in Eagle or surrounding counties. Deed-restricted employee housing. Figure I-3 on the following page documents the individual projects that comprise Vail’s deed-restricted employee housing inventory. In total, the community supports about 603 employee units and recent private development has added an additional 124 dedicated units for a total of 727 deed-restricted employee units created by town actions or regulations. When full, these units support an estimated 1,600 employees, approximately 75 percent of which (1200 employees) work in Vail.1 Timber Ridge is the largest employee project with 198, two bedroom units, often accommodating three or four workers per unit. Conversely, some smaller projects are family oriented, with two or more bedrooms per unit but supporting only one or two workers. The town added about 124 employee dedicated units through development requirements associated with recent growth. 1 In 2007, the town of Vail surveyed a sample of housing residents, indicating that about two-thirds of housing residents worked in Vail. Anecdotal data indicates that the loss of construction jobs has concentrated the percentage of Vail employee housing residents who are also employed by Vail. This analysis assumes 75 percent of persons living in Vail employee housing also work within the town of Vail. 10/16/2012 BB C RES E A R C H & CON S U L T I N G SECTION I, PAGE 3 Fi g u r e I - 3 . Va i l E m p l o y e e H o u s i n g I n v e n t o r y Co m m u n i t y P r o j e c t s De s c r i p t i o n Co s t / R e t u r n Ti m b e r R i d g e V i l l a g e 19 8 A l l 2 / 1 u n i t s ; 1 1 5 a r e m a s t e r - l e a s e d by V a i l R e s o r t s Re n t a l 1 9 8 1 , 2 0 0 3 (r e n o v a t e d ) Ye s T o w n o f V a i l ( T O V ) p a i d $ 2 0 m i l l i o n i n 2 0 0 3 ; r e n t a l r e v e n u e s p a y b o r r o w e d co s t o f p u r c h a s e & m a n a g e m e n t ; p r i v a t e l y m a n a g e d , p e r m a n e n t d e e d re s t r i c t i o n ; $ 2 2 M b o r r o w e d i n c l u d i n g c l o s i n g c o s t s ; T O V l e n t $ 1 . 9 M t o T R A H C $18,000,000 Va i l C o m m o n s 71 Ow n e r s h i p U n i t s : 24 2 / 1 . 5 c o n d o s ; 13 2 / 2 t o w n h o m e s ; 6 t h r e e b e d r o o m to w n h o m e s ; 1 0 3 / 2 w i t h 2 - c a r g a r a g e s Re n t a l U n i t s : 1 8 o n e b e d r o o m s Re n t an d Ow n 19 9 7 Y e s T O V b o u g h t l a n d f o r $ 4 . 5 M o u t o f G e n e r a l F u n d , a n d C i t y M a r k e t f u n d e d th e d e v e l o p m e n t . T O V r e c e i v e s a n n u a l r e s i d e n t i a l l a n d r e n t o f $ 4 9 , 0 0 0 , a n d co m m e r c i a l l a n d r e n t o f $ 9 9 , 0 0 0 f r o m t h e h o m e o w n e r s a s s o c i a t i o n ($ 1 4 8 , 0 0 0 t o t a l a n n u a l T O V r e v e n u e ) . L a n d r e n t s s h o u l d c o v e r t h e $4 . 5 M l a n d c o s t b y 2 0 2 7 . None Re d S a n d s t o n e C r e e k 18 2 1 / 1 t o w n h o m e s ; 1 0 2 / 1 t o w n h o m e s ; 2 2 / 2 c o n d o s ; 4 3 / 2 c o n d o s Ow n 1 9 9 9 N o D o n a t e d s m a l l ( o t h e r w i s e u n d e v e l o p a b l e ) 1 / 3 a c r e t o w a t e r d i s t r i c t w h i c h o w n e d ad j a c e n t p r o p e r t y . T O V a n d w a t e r d i s t r i c t b u i l t u n i t s a n d s o l d f o r th e c o s t o f d e v e l o p m e n t . C o n v e y e d l a n d t o h o m e o w n e r s a s s o c i a t i o n . N o lo s s o r i n c o m e c r e a t e d . None Mi d d l e C r e e k 14 2 M i x o f s t u d i o s ; 1 / 1 ; 2 / 1 a n d 3 / 2 u n i t s R e n t a l 2 0 0 5 N o $ 2 3 M , $ 8 5 0 K i n s t a t e g r a n t s , $ 1 5 M i n p r i v a t e a c t i v i t y b o n d s = $ 7 . 1 5 M pr i v a t e d e v e l o p e r c o s t . L a n d l e a s e d t o h o u s i n g a u t h o r i t y f o r $ 1 0 / y e a r . TO V g e t s l a n d a n d i m p r o v e m e n t s w i t h n o d e b t o b l i g a t i o n i n 2 0 5 3 . None Bu z z a r d P a r k 24 2 1 s t u d i o s a n d  3 o n e b e d r o o m u n i t s R e n t a l 1 9 9 8 Y e s $ 2 M c o s t , T O V b u i l t a n d m a n a g e d . N o n e No r t h T r a i l T o w n H o m e s 6 4 2 / 2 t o w n h o m e s ; 2 3 / 2 t o w n h o m e s O w n 2 0 0 1 N o B o u g h t p r o p e r t y f o r $ 1 5 0 , 0 0 0 . D e v e l o p e d b y T O V f o r $ 1 m i l l i o n . C o s t s re c o v e r e d a f t e r u n i t s w e r e s o l d . None Ar o s a D u p l e x 2 2 f a m i l y d u p l e x e s O w n 2 0 1 0 N o T O V b o u g h t p r o p e r t y f o r $ 1 5 0 , 0 0 0 . B u i l t d u p l e x s a n d s o l d t h e m f o r co n s t r u c t i o n c o s t s . None Cr e e k s i d e A p a r t m e n t s 12 A l l o n e b e d r o o m u n i t s R e n t 2 0 0 0 Y e s T O V b o u g h t a p a r t m e n t p r o p e r t y f o r $ 1 . 2 M f r o m t h e g e n e r a l f u n d . T O V g e t s r e n t a l re v e n u e , w i l l b e p a i d o f f i n 2 0 2 0 . None Bu y - D o w n P r o g r a m 5 T w o 2 / 1 u n i t s ; 3 1 / 1 u n i t s 3 f o r s a l e , 2 r e n t a l -Y e s f o r re n t a l s TO V b u y s u n i t s ; a p p l i e s d e e d r e s t r i c t i o n a n d s e l l s f o r D e e d R e s t r i c t e d Va l u e . None Ca r e t a k e r U n i t s 12 5 V a r y i n t y p e R e n t a l - N o H o m e o w n e r s p r o v i d e a c c e s s o r y d w e l l i n g u n i t s f o r w o r k e r s i n e x c h a n g e fo r s q u a r e f o o t a g e a l l o w a n c e s . None Su b t o t a l 6 0 3 Fo u r S e a s o n s R e s o r t 2 8 O n - s i t e u n i t s ; 5 6 t o t a l b e d s R e n t a l 2 0 1 0 N o Bu i l t a s p a r t o f t h e r e q u i r e d e m p l o y e e h o u s i n g c o m p o n e n t . - Fi r s t C h a i r ( A r r a b e l l e c o m p o n e n t ) 3 2 L i o n ' s H e a d V i l l a g e ; 1 2 4 t o t a l b e d s R e n t a l 2 0 1 1 N o B u i l t a s e m p l o y e e h o u s i n g c o m p o n e n t f o r t h e A rr a b e l l e p r o j e c t . - Ri t z - C a r l t o n 3 2 O n - s i t e u n i t s ; 5 3 t o t a l b e d s R e n t a l 2 0 1 0 N o B u i l t a s p a r t o f t h e r e q u i r e d e m p l o y e e h o u s i n g c o m p o n e n t . - So l a r i s 1 3 O f f - s i t e u n i t s ; 2 2 t o t a l b e d s R e n t a l 2 0 1 0 N o B u i l t a s p a r t o f t h e r e q u i r e d e m p l o y e e h o u s i n g c o m p o n e n t . - Se b a s t i o n 1 9 O n - s i t e u n i t s ; 2 8 t o t a l b e d s R e n t a l 2 0 1 0 N o B u i l t as p a r t o f t h e r e q u i r e d e m p l o y e e h o u s i n g c o m p o n e n t . - Su b t o t a l 1 2 4 To t a l E m p l o y e e H o u s i n g U n i t s 7 2 7 u n i t s To t a l C u r r e n t D e b t O b l i gation Wo r k e r s P e r U n i t 2 . 2 w o r k e r s To t a l E m p l o y e e s H o u s e d i n U n i t s 1 , 6 0 0 e m p l o y e e s Em p l o y e e s w o r k i n g i n V a i l ( 7 5 % ) 1 , 2 0 0 e m p l o y e e s Ye a r Co m p l e t e d $18,000,000 Un i t s Pr i v a t e P r o j e c t s w i t h R e s t r i c t e d E m p l o y e e U n i t s Re n t or O w n Current Debt Obligation Re v e n u e Ge n e r a t i n g fo r T O V No t e : T o t a l e m p l o y e e s h o u s i n g i n e m p l o y e e u n i t s i s b a s e d o n 1 . 6 5 e m p l o y e e s l i v i n g i n e a c h u n i t . So u r c e : T o w n o f V a i l , R R C A s s o c i a t e s a n d B B C R e s e a r c h & C o n s u l t i n g . 10/16/2012 PAGE 4, SECTION I BBC RESEARCH & CONSULTING Vail does not restrict its employee housing to Vail employees, although most residents who choose to live in Vail employee housing are also employed at Vail businesses. The key data drawn from the housing inventory, and used to calculate employee housing benefits, are:  The town of Vail owns, supports or maintains 727 employee dedicated units, housing approximately 1,600 workers—about 1200 of which are employed in Vail.  Vail workers hold 1.3 jobs per worker,2 thus the 1200 Vail workers living in Vail employee units will fill about 1,600 Vail positions (jobs), roughly 18 percent of the town’s estimated 9000 total positions.  Approximately 90 percent of Vail deed-restricted employee housing are rental units. The remaining 10 percent are deed-restricted for-sale units, which are often larger, multi-bedroom projects designed for families and longer term workers. Both forms of housing are included in this analysis.  Timber Ridge carries about $18.0 million in net long-term debt3. Rents from Timber Ridge currently cover all operating costs and debt service. It is most notable that Vail taxpayers have no ongoing out-of-pocket costs associated with the development and operation of Vail employee housing. Individual projects are managed by contractors and costs are covered by project rents. The modest administrative costs of supporting the Vail Local Housing Authority are paid out of the town general fund. The current housing associated debt service—approximately $18.0 million dollars, which is associated only with the Timber Ridge Project—is technically an obligation of the Timber Ridge Affordable Housing Corporation. The corporation continues to make all required monthly payments. Vail’s experience with deed-restricted employee housing is in notable contrast to many resorts that more often rely on on-going sales or property taxes to support community housing operations or to cover debt service and operational obligations. Vail private market housing. As noted previously, about 70 percent of individuals employed in Vail live outside of the town. About 30 percent of persons employed in Vail live in the town (some 2100 workers). Of these Vail employed and Vail housed workers, approximately 1200 individuals (57%) live in Vail employee units, while the remaining 900 persons (43%) live in owner occupied or rented units. The availability of private residential units, whether for sale or for rent, is subject to many market forces. The dynamics of the Eagle County and Vail private housing markets is complicated by the shifting economics of long-term (employee) versus short-term (overnight guests) housing rentals and the long standing disconnect between local wage and salary levels and Vail housing costs. 2 RRC Associates; Nexus Study, 2006 3 The Timber Ridge project has about $20.2 million in debt and nearly $2.0 million in available cash reserves. The town manager reports that Timber Ridge revenues are covering all monthly debt service obligations but the project is below certain debt to cash reserve requirements. 10/16/2012 BBC RESEARCH & CONSULTING SECTION I, PAGE 5 Private housing in Vail for employees is a critical element of the employee housing provision system but also a very uncertain component of the long term employee housing stock. Some of the forces narrowing the availability of Vail owner occupied and private rental housing include:  Some Vail workers live in their own privately-owned homes. In many instances these units were purchased many years ago when prices were lower. As these residents leave Vail and sell the residence it is likely that these units will convert to second homes and will be lost to the local employee housing stock.  Despite the economic downturn and the general decline of housing values, Vail homes are still far outside of the price range of local employees. The median price of a unit solid in Vail in 2011 was over $1.8 million. Even in most affordable Vail neighborhoods, the median sale price in 2011 was over $400,000 and that would only purchase an older, one-or two bedroom condominium unit. Even in challenging economic times, the private housing market can not readily provide affordable housing for Vail employees.  The recent economic decline and the decline in resort home values were expected to produce many new year-round rental units, effectively expanding the local employee housing stock. Instead, changes in the cost of offering units to transient guests, the result of VRBO-like (Vacation Rental by Owner) web access made transient rentals in many cases a more attractive rental alternative and muted the transfer of units to long term worker rentals. In sum, the private market is providing about 43 percent of the housing used by Vail residents who are both working and living in Vail. This housing stock is likely to decline in number overtime as owner occupied units are sold and transferred to second home use. Despite lowered prices, acquisition of private homes by Vail workers is still largely infeasible. The recent economic downturn undoubtedly added to the local housing rental stock, but it did not dramatically increase the market or significantly change rental prices, as many owners chose to rent to transient guests rather than long term employee residents. The town of Vail and the Vail Local Housing Authority reports strong demand for family oriented, for-sale units that would allow workers and their families to stay in Vail and maintain the community’s family presence, fill volunteer positions and support a diverse, year round community, Nearly 60 percent of Vail worker-residents are housed in deed-restricted units and Vail’s deed- restricted units, both rental and for-sale projects, have maintained high occupancy rates, which is evidence of their value and desirability. In essence Vail’s deed-restricted housing has proven an effective insurance policy for worker availability during both periods of both prosperity and decline. The town policy to expand the supply of more family and deed-restricted for-sale units is likely the next evolutionary step of this program. 10/16/2012 PAGE 6, SECTION I BBC RESEARCH & CONSULTING Vail Employee Housing Rental Rates The majority of Vail employee units are designed to serve a transient rental workforce and to provide clean, safe, convenient and functional housing. Employee housing is generally less expensive than open market housing but formal comparisons are difficult because the wide variation in size, location, capacity and finish in private market units. Most Vail employee housing does not have limits on resident income, although the Vail Middle Creek project is a private development using state and federal mortgage funds that require occupancy by moderate income households. The most recent Vail employee housing rental rates for Middle Creek and qualification criteria are shown below. Figure I-4. Rental Rates and Income Restrictions, Effective July 15, 2011 Note: * Combined incomes. Source: Middle Creek Village, Vail Local Housing Authority Unit Type Studio:883$ 1,500$ One bedroom:941$ 1,600$ Two bedroom:1,122$ 1,800$ Three bedroom:1,969$ 3,000$ 2,093$ 3,000$ 2,160$ 3,000$ 1 person, living alone 36,360$ 2 persons sharing unit *41,580$ 3 persons sharing unit *46,740$ 4 persons sharing unit *51,960$ RentDeposit Income restrictions for studio, one and two bedroom units (60% of AMI): Generally, Vail employee units are in high demand and have low vacancy rates, suggesting units are scarce and highly valued in the market place. In summer, vacancies rise but even over the last few years, the units have remained at or near capacity during ski season and have continued to meet financial requirements. All of the for-sale, deed-restricted housing is occupied. Representatives of Polar Star Properties, which manages a number of Eagle County rental complexes, reports that average rents on a per square foot declined 16 percent (Eagle County) between 2007 and 2011.4 The project management company also indicated that summer 2011 vacancy rates, elsewhere in the Valley, were high. Conversely, the town of Vail representative reports that all available Vail employee housing are fully occupied for the 2011-12 ski season. 4 Gerry Flynn, Eagle County Economic Development Council, Quarterly Newsletter 2011. 10/16/2012 SECTION II. The Economic Value of Employee Housing 10/16/2012 BBC RESEARCH & CONSULTING SECTION II, PAGE 1 SECTION II. The Economic Value of Employee Housing This section describes analytical options considered for this analysis. Methodological assumptions used in the Vail analysis are documented and calculations presented describing the economic value of Vail’s investment in employee housing. Methodological Options There is no generally accepted methodology for calculating the economic value of affordable housing. BBC’s investigations uncovered only a few studies that attempted to measure the economic impact of employee housing and most were conducted in traditional urban settings with very different economic conditions. A few illustrative examples are highlighted below. Minneapolis & Saint Paul Studies  A 2001 report by Maxfield Research Inc. and GVA Marquette Advisors on the Twin Cities of Minnesota estimated the economic value and return on investment in workforce housing by calculating the increased consumer spending, business income and construction activity associated with the subject households. The analysts considered all workforce households employee housing as new residents to the community and then multiplied this new household figure by the average gross income for the workforce household. This figure was then multiplied by the percent of income each household spent in the local economy and the share spent in the Twin Cities.  The Twin Cities study explains that the lack of workforce housing negatively impacts the productivity of the local businesses. The study assumes that each additional worker will add a certain additional business production value to the local economy. To find the increase in business income added by new workforce households, the report multiplies the number of new workers by the business income per worker. Finally, the report adds in the projected gains related to the construction of the workforce housing units. The projected increase in local construction wages added to the projected increase in government fees and tax assessments contribute to the positive economic impact due to new construction of the units. When the figures of consumer spending, business income and construction gains are added together, the report finds the total economic benefit of adding new workforce housing units to the market. The model calculates the projected economic return over 15 years and divides this figure by the total estimated development cost to build the units to determine a return on investment (ROI). The calculations suggest an ROI ranging from 2.22 to 8.13. Portland and Oregon state workforce studies  The Workforce Housing Report of Central City, Portland by GVA Marquette Advisors takes a similar approach towards valuing the economic impact of workforce housing as the Twin Cities study. However, instead of assessing the value of consumer spending and business income, the Portland report uses IMPLAN software to measure the direct, indirect and induced impacts of construction activity and the impact of the addition of new households. The model divides this economic return by the public cost of constructing the workforce units, with and without subsidies, to calculate the return on investment in workforce housing. 10/16/2012 PAGE 2, SECTION II BBC RESEARCH & CONSULTING  The study finds that the 20-year return on each dollar spent is $2.73 when the city is paying the full cost of development. When the city provides a subsidy to private developers, the 20-year return on investment is $12.55 for each dollar invested.  Using a similar IMPLAN methodology, the Oregon Housing and Community Services (OHCS) studied three housing developments in Oregon to indentify the economic impacts of project investment. The study used IMPLAN to calculate the associated impacts of constructing the housing developments. The figure does not illustrate the potential of private investment coupling with the public funds, typically $5-$7 per state agency dollar. This private investment boosts the economic impact of $10 to $15 per OCHS dollar invested. Although IMPLAN modeling and similar business activity measure analysis are legitimate approaches, the other housing studies identified failed to acknowledge that absent employee housing other beneficial development might occur. This potential substitution issue is one characteristic that sets Vail apart from most traditional economies. Similarly, a Vail study should acknowledge that Vail workers still have other options for housing even if those options are more expensive or less convenient. In our view, the practical value of Vail housing is best expressed as the savings incurred by housing residents and local businesses because Vail businesses did not have to incur the additional costs of luring new workers from remote housing. BBC Approach Vail has invested in employee housing as a means of ensuring the availability of a functional and reliable workforce in an area where private land and construction costs limit the private market’s ability to produce affordable worker housing. This study incorporates six key assumptions regarding employee housing and its impact on the unusual economies of mountain resorts. (1) The economic value of employee housing in Vail will vary by the perspective of the individual, business interest or taxpayer considering the issue. The economic value of employee housing to a worker, who is relieved of a lengthy and costly up- valley commute, is different than the value received by an adjacent home owner with concerns about neighborhood congestion. Similarly, the value of employee housing to a tax-paying second home owner may be perceived very differently than the value of the same units to a local employer, who might otherwise be unable to secure a necessary work force. All of these varying perceptions of value are reasonable and valid. Employee housing has costs and benefits that are not evenly distributed throughout the Vail or Eagle County community. This disparate distribution of costs and benefits is true for most public investments, including parks, recreation, public parking and basic services such as police and fire protection. The objective of this report is to fully represent costs and benefits of the community’s employee housing investment and the distribution of costs and benefits among various communities of interest within the broader Vail community. (2) Without employee housing, Vail businesses would still attract workers but attraction and retention would be more expensive, employee turnover would be higher, and employee flexibility and willingness to work irregular hours or multiple jobs diminished. 10/16/2012 BBC RESEARCH & CONSULTING SECTION II, PAGE 3 Many studies calculate the value of employee housing with an assumption that without such housing, workers would be unavailable. This study assumes that, “but for Vail housing,” workers could still be found but employees would require higher wages to compensate them for at least the lost time and new commuting expenses. In addition, businesses would incur higher costs for retention and training of employees, and to provide full services despite reduced multiple job holding by local employees. (3) The provision of affordable employee housing requires some form of public investment, which implies that tax payers—or some subset of tax payers—are, in some degree, paying for this amenity. Employee housing requires some form of public or private subsidy in order to produce housing below private market costs. Although Vail has done a notable job at stimulating employee housing with very little general public expense, any public subsidy implies that some community interests pay and other interests benefit. For instance, if the town were to buy land and donate it toward the creation of employee housing, the local taxpayers in the community would subsidize the project in proportion to each taxpayer’s local tax contribution and a separate set of employee residents and commercial businesses would be the direct beneficiaries. Sometimes that subsidy is direct and clear—e.g. the town’s acquisition and donation of land. Sometimes that subsidy is less obvious—when the community attracts state or local financial support or housing is exacted from new development. (4) The presence of employee housing alters the local housing market with implications for the provision of a high level of guest services and Vail’s position in the larger competitive resort marketplace. Vail is a successful resort in part because employee housing contributes to the ability of public and private enterprises to attract and retain a high quality, stable workforce at reasonable wage levels. Employees value local housing because it reduces travel time and costs and reduces the uncertainty, cost and difficulties of procuring housing in the Vail Valley and generally improves the quality of life. The economic value of employee housing is also represented in part by the day to day enhanced quality of service that distinguishes the Vail guest experience. Additionally, with the provision of workforce housing, Vail is better able to compete against other resorts, some of which have very extensive housing programs, for the best workers. The presence of employee housing has value to Vail businesses and thus indirectly benefits visitors, second homeowners and residents who use public and private services, ski on Vail Mountain or dine in area restaurants. These benefits are largely unquantifiable. Conversely, the provision of housing alters the local private housing market. Arguably, public investment in housing in part shifts the cost burden of attracting workers away from those enterprises that require a large workforce and thus makes a private expense a shared community costs. This is the dilemma of all public services. Economic purists would suggest that inaccurate pricing inevitably leads to misplaced investment. Arguably, the presence of lower cost employee housing reduces overall wages and damages those property owners who would otherwise put private rental units on the market. Similarly, inclusionary zoning, and the requirement of new development to provide housing, contributes to the higher costs of development, which distorts land values, raises the cost of new projects and reduces development innovation and experimentation. 10/16/2012 PAGE 4, SECTION II BBC RESEARCH & CONSULTING (5) The provision of employee housing can displace other forms of development, which under many circumstances may be of higher economic value. In recent instances, employee housing in Vail is required of new development and thus the town foregoes the potential benefits of additional private accommodations and thus the visitor spending and tax receipts associated with private residential accommodations. Resort towns are unusual in that high value private housing induces a high level of retail sales and thus any reduction in private market development, or substitution of high value for lesser valued residential units, can be a costly “investment”. A share of existing Vail employee housing was developed by way of zoning requirements placed on new development. Arguably, if not for town housing requirements, some employee units would likely have been replaced by private units, which would have produced higher levels of town tax income, increased the original value of the underlying land, and increased developer profit and/or reduced the cost of the other private units in each development. On the other hand, the town requirements that require on-site employee units most often also afford the developer additional density to accommodate those employee units, thus employee and open market units are not readily transferable. The economic loss suffered by developers because of employee requirement varies based on other site constraints and decisions about on-site versus off-site development. (6) The economic value of employee housing is not consistent from year to year—it varies considerably depending upon background economic conditions. By way of example, in 2007-08, there were more Vail jobs than available workers and the lack/cost of housing might have been the weakest link in the local resort economy. Although consumer demand was strong, the local business community was hamstrung by the lack of available workers and service quality diminished. Private housing was largely unavailable and/or very expensive. Under these circumstances, dedicated employee housing was extremely valuable. Two years later, in 2009-10, the situation reversed and jobs were scarce and public and private housing was relatively plentiful. Additional private units came into the rental market. Yet, in 2011, Vail employment demand rebounded, summer business was strong and there was virtually no vacancy in Vail employee housing for the 2011-2012 winter season. In sum, there is no single perspective or single value that can be placed on a public investment in a shared good, such as employee housing. It is a complicated equation. Nevertheless, faced with ongoing community investment decisions, exploring the question and attempting to illuminate the issue, is a necessary exercise. 10/16/2012 BBC RESEARCH & CONSULTING SECTION II, PAGE 5 Direct Economic Value of Employee Housing Considering all of the varying perspectives on employee housing and the many trade-offs that come with public intervention into the private market, BBC offers the following cost benefit calculations. Figure II-I shows the conceptual economic impacts of Vail employee housing as experienced by the three major components of the Vail economy: Employees, Business, and Government. Figure II-1. Direct Impacts of Vail Employee Housing Source: BBC Research & Consulting, 2012 As noted previously, the value of employee housing is best measured by the reduced costs of business associated with a flexible, available and reasonably priced workforce. Vail employees and businesses. Resident employees enjoy the most immediate and direct benefits from the availability of Vail employee housing, by the avoidance of the more costly alternative of a lengthy down valley commute. Cost of living savings include: reduced costs of housing, reduced costs of travel and the value of increased time availability. Many resort workers hold more than one job allowing increased earnings, a practice that is facilitated by convenient, local housing. Vail businesses benefits in the same manner as employees. If, hypothetically, the 1,200 Vail housed and Vail employed workers1 were forced to live down valley and commute, Vail businesses would have to increase compensation to re-attract these workers. The attached Figure II-2 shows the assumptions and values underling the calculation of Vail’s employee housing investment as experienced by Vail workers and Vail businesses. These calculations demonstrate that each Vail housed Vail worker represents an economic benefit of about $10,530 per year for a total annual economic benefit of about $12.6 million dollars per year ($10,530 x 1,200 workers). This benefit is shared between Vail businesses, which enjoy lower labor costs and Vail workers who have lower operating costs, increased time and increased flexibility. 1 Figure I-3 Section I Direct Impacts of Vail Employee Housing Vail Businesses Positive: Employee cost savings –Wages and salaries –Training/turnover –Skills and quality of labor force –Eco bus pass Additional local spending by employee residents Vail Employees Positive: Reduced cost of living –Rents –Commute time –Commute costs Ability to hold multiple jobs Town Government Positive: Employee cost savings –Wages and salaries –Training/turnover –Skills and quality of labor force Reduced parking, construction and operational costs –Capital investment/risk –Bond risk –Lost opportunity for higher valued development on town- owned property Negative: 10/16/2012 PAGE 6, SECTION II BBC RESEARCH & CONSULTING Figure II-2. Employee Cost Assumptions and Calculations Source: BBC Research & Consulting, 2012 Additional benefits, but of a lesser value, accrue to workers who reside in Vail housing but are employed elsewhere in the county. Anecdotally, it is reported that many of these workers started with Vail jobs but eventually took promotions or new positions elsewhere in the county. Others have summer jobs outside of Vail, often in construction, and retain their Vail housing with the expectation of returning to a Vail position in the following winter. Because these workers are not immediately contributing to the Vail economy they are not considered a return on Vail’s housing investment. Vail businesses. Without employee housing, Vail businesses would have to raise employee compensation levels to cover the higher costs of remote employee housing and employee commuting expenses2. In practice, local businesses experience additional benefits. BBC has identified three categories of business operational savings associated with local employee housing.  Savings associated with reduced pressure on wage and salary levels. Vail businesses save the cost of providing higher wages that would otherwise be necessary to attract Vail’s workforce from more removed communities where housing is available. These savings are already counted as an employee benefit. 2 This calculation assumes a reasonable equilibrium between supply and demand for employees. In years where job opportunities are plentiful, such as 2007, employees would have to raise wages more to entice down valley workers to Vail jobs. In years when jobs were scarce, such as 2010, far less inducement would be necessary. Additional travel time:45 min. per day @ $12 per hour $9.00 per day X 200 days $1,800 per year, per employee Additional travel costs:20 miles per day @ 52¢ per mile$10.40 per day X 200 days $2,080 per year, per employee Additional housing costs $75per month, per employee $900 per year, per employee $2,000 per year, per employee $2,000 per worker $1,750 per worker Employee Savings = = Eco bus pass = Additional Employer Costs At a minimum, Vail employers would have to raise wages and salaries to compensate employees for the additional costs associated with living down valley. Total Employee and Employer Savings = $10,530 per employee New Employee Compensation = $4,780 per employee New Employer Costs = $5,750 per employee Employee turnover/ training/quality Reduces multiple job holding; increases employee hiring requirements Employers relying on a commuting work force would face additional training and hiring costs and would likely share in the additional cost of ECO bus passes. = = = = = 10/16/2012 BBC RESEARCH & CONSULTING SECTION II, PAGE 7  Savings associated with reduced requirements for public and private investment in parking and transportation. Commuting workers experience higher travel costs and must be able to access local parking or functioning mass transit. In addition, most businesses would pay for an ECO bus pass, or at least subsidize that pass, in order to enhance worker reliability. Monthly bus pass costs range up to $200 per month depending on the residence destination. We assumed partial subsidy by employees of $1750 per year per pass.  Savings associated with enhanced worker availability, quality and reliability. A lengthy commute to what is often poor housing contributes to absenteeism and worker dissatisfaction, especially in a challenging environment where traffic conditions and travel times can be uncertain. Vail businesses save by experiencing reduced worker turnover, reduced business disruption due to delayed or absent workers, greater business flexibility because of worker ability to commit to part time positions or irregular hours and reduced employee training costs. We assume that local employee housing saves $2,000 per resident worker in reduced turnover and training costs. As noted above, BBC estimates that each Vail-based worker using Vail employee housing represents a savings to Vail businesses of about $10,530 per employee or $12.6 million per year. Increased spending by employee-residents. Employees residing in town also tend to purchase daily goods and services in town and frequent Vail restaurants, bars and entertainment. The value of this local spending can be derived by calculating the percent of worker income spent on local goods and services, and estimating a Vail capture rate. Local employee spending in Vail as a result of Vail employee housing is documented below. Figure II-3. Vail Retail Spending by Employees Lodged in Vail Employee Housing Source: BBC Research & Consulting. BBC estimates that in addition to the savings realized by Vail businesses, Vail retailers would garner approximately $6.0 million in additional retail sales, which represents an additional $240,000 in annual sales tax receipts (at 4.0%). Categor Employees in Vail employee housing1,600 Average annual income 30,000$ Total employee income 48,000,000$ Percent spent on retail 25% Amount spent on retail12,000,000$ Percent spent in Vail50% Amount spent in Vail 6,000,000$ Amount of retail spending per employee$3,750 Value 10/16/2012 PAGE 8, SECTION II BBC RESEARCH & CONSULTING Vail Government. It should be noted that the town is also a business with the same employee cost and challenges as a private entity. To the degree that workers housed at Vail employee housing are also town workers, cost avoidance benefits will be roughly the same for both public and private sectors. More problematic, if employee housing were unavailable, there would be pressure on the town to create additional parking to accommodate the 1,200 or so additional workers who would have to commute into the community each work day or evening. Assuming 50 percent of these workers would take the ECO bus, or utilize parking provided by employers, and that then new bus riders could be accommodated without significant cost to the community, about 600 new workers would drive to town. Further, assuming two workers per car and .75 parking spaces per vehicle (assuming job time shifts), the town would require 225 new parking spaces in order to maintain current parking standards. Structured parking in Vail costs about $40,000 per space. Assuming a physical solution could be devised, accommodating additional parking demand would cost at least $9.0 million. Operating costs of the structure would be in addition to capital costs and employees are unlikely to pay the kind of rates currently in effect, thus suggesting an ongoing operating loss. Currently some businesses provide employee parking (e.g. town offices, hospital) but on-site parking options have largely been exhausted and new employees would have to be accommodated in new public parking facilities or compete for existing parking spaces. Avoiding pressures on parking is a strong argument in favor of employee housing but in all practicality, developing new structured parking for employees is an unlikely practical solution. In a reasonable “no-housing” hypothetical, rather than create parking, the town would be more likely to press Eagle County to increase bus service and perhaps expand in-town operations. As described above, employers would be saddled with the additional costs of attracting workers and all the attendant problems of employee turnover and decreased service levels associated with a lengthy bus commute. In sum, we see three measures of employee housing value, as shown in Figure II-4. Figure II-4. Summary: Valued Vail Employee Housing Source: BBC Research & Consulting. CategorValue Business costs avoided$12.6 million per year New retail spending$6.0 million in annual retail sales($240,000 in sales tax @ 4.0%) Parking expansion$9.0 million 10/16/2012 BBC RESEARCH & CONSULTING SECTION II, PAGE 9 Other Perspectives The provision of employee housing also has broad economic consequences for all Vail property owners, visitors and residents. These are summarized in Figure II-5. Figure II-5. Perspectives on Vail Employee Housing Residential property owners. As noted in the above Figure II-5, property owners seeking to rent privately owned residential units currently have to compete with employee housing, although that public subsidy is arguably small. Currently, the presence of 727 units of lower priced housing probably dampens the potential rental value of individually owned rental units. Conversely, all residential property owners benefit because exaction requirements on new or remodeled housing drives up the cost of new units, effectively pulling up the price of all units. Further, all property owners benefit from a well functioning resort and positive guest experience. Commercial property owners. All commercial property owners are generally benefited by community investment in employee housing as it increases the costs of potential new competition, because of the inclusionary zoning and commercial linkage requirements, and reduces the labor costs of operations for commercial tenants. Land owners. Land owners, properties with redevelopment potential, and developers are burdened by inclusionary zoning and commercial linkage and employee housing requirements as they bear an immediate cost for maintaining the town’s housing stock. Other Perspectives on Vail Employee Housing Private Rental Property Owners Negative: •Subsidized Competition All Residential Property Owners Positive: •Increased cost of competitive new developments All Commercial Property Owners Positive: •Increased cost of competitive new development Land Owners and Developers Negative: •Increased cost of competitive new development Positive for all:Increased functionality of the resort Improved visitor experience 10/16/2012 PAGE 10, SECTION II BBC RESEARCH & CONSULTING Vail—The Resort Economy Finally, and perhaps most importantly, employee housing presents wide spread general benefits to all property owners, residents, visitors and second home owners who have a stake in the success of Vail. Generally, a reasonable quality of life for residents, the possibility of professional advancement and homeownership, reduced commuting times, year-round presence of residents and cost savings, all add to a more stable employee base and a better functioning community, which results in:  An improved guest experience—the most basic product sold by Vail;  Better positioning against other resorts competing for a quality workforce;  Reduction in the seasonality of local businesses;  Increased vitality, diversity and authenticity for the town;  Increased community participation (e.g., volunteer activities, town boards); and  Enhanced ability for younger residents to stay in Vail and grow into higher-level employment and community leadership positions.  Opportunities for families to remain in Vail and raise a generation of new Vail residents, support local schools and create a critical mass of residents, which would all be jeopardized without the town’s support of deed-restricted for-sale housing in addition to rental units. A better community with a more stable and participatory workforce translates into better guest services. Visitors value their interaction with local residents. Workers who enjoy their town and communicate pride in their community help create the experience that differentiates engaging resort communities from branded commercial resorts. As the community matures many long time residents will retire and their homes will likely transfer into second home status, further eroding the town’s private housing stock. The economic value of employee housing will grow as private ownership stock is diminished and the diversity of employee housing, including additional deed-restricted family and for sale units, expands. In sum, over a two decade period, the town has created an enviable employee housing stock with very modest costs to the general taxpayers. Operation of the town’s 727 units puts no burden on the general fund. The Timber Ridge project, the town’s largest investment has some remaining financial risk, but it is still operated under contract by a private entity and current rents cover all operating costs and debt service. The town of Vail has been remarkably successful in creatively stimulating the development of employee housing without incurring substantive public expense. Vail’s 727 employee units save the business community about $12.6 million per year in operating expense, generate nearly a quarter million dollars in sales taxes for the general fund, and allow the town to avoid a burdensome investment in finding parking solutions for 1200 employees. 10/16/2012 M EMORANDUM To: Nina Timm, Housing Coordinator, Town of Vail From: Andy Knudtsen and David Schwartz, Economic & Planning Systems Subject: Chamonix Market Update Date: February 28, 2011 Background The Town of Vail considers the Chamonix site in West Vail a component of a larger strategy to address affordable housing needs in the community. The site has the potential to hold approximately 58 dwelling units and would expand the inventory of affordable housing within the Town. The elected officials believe that additional housing will enhance the sense of community by providing homeownership opportunities to local residents and improving economic vitality by expanding the pool of employees available to local businesses. In 2008, Economic & Planning Systems (EPS) provided a market analysis of the conceptual development plans for the site. The report included an evaluation of the market trends, an assessment of the position the site holds within Eagle County market, and a review of the site’s competitive advantages and disadvantages. The market, however, has changed since that time. This memorandum provides an overview of updated market findings relevant to supply and demand conditions of the Eagle County market. Methodology EPS conducted its analysis by focusing on the broader market trends and focusing in on specific relevant market segments. The following methodology was used and outlines the content of this memorandum: 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 2 20908-DM-030111 • 3 Geographies: EPS identified areas within the County as having the following sales locations: o Upper Valley: Booth Creek, Cascade Village, East Vail, Highlands Meadows, Lionshead, Potato Patch, Sandstone Lionsridge, Spraddle Creek, Valley Ridge at Vail, Vail Golf Course, Vail Village, and West Vail. o Mid Valley: includes Arrowhead, Avon, Bachelor Gulch, Beaver Creek, Berry Creek Ranch, Cordillera, Eagle Vail, Edwards, Homestead, Lake Creek Valley, Minturn, Mountain Star, and Wildridge and Wildwood. o Lower Valley: includes Cotton Ranch, Eagle, and Gypsum. • 3 Time Periods: EPS identified periods of time over the past six years that represent distinct periods: o 2004-2008: During this period in Eagle County, the market continued its upswing in average sales prices and maintained its volume: o 2009: Generally, 2009 saw a major decrease in average sales prices and a contraction in volume of activity; o 2010: During this year, the market began to recover and stabilize. Average prices in parts of Eagle County climbed again, and volume increased over 2009, but did not return to the volume before 2008. • 3 Price Bands: Within the geographies and periods of time, three price bands are relevant to understanding where the market is today: o Under $438,000: was identified as the conforming loan limit of approximately $418,000 plus an estimated five percent that a buyer would have available for a down payment; o Between $438,000 and $600,000: was identified as the next band of price points, which identifies an upper threshold for other local buyer products; and o Sales above $600,000: was identified as a separate price band to isolate products purchased by second-homeowners or out-of-state buyers. Demand Conditions Employment and wage information comes from the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA). The BLS data identify trends and conditions of wage and salary positions through the second quarter of 2010. Data from the BEA identify counts of both wage and salary jobs and sole proprietors through 2008. Due to the comprehensive nature of BEA data, the lag time is greater. EPS has used the most comprehensive data available from these sources for this report. 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 3 20908-DM-030111 Employment & Wages Major losses in employment have been sustained nationally, regionally, and locally. In resort economies, such as Vail’s, significant losses have occurred in the construction industry. • Total wage and salary employment in Eagle County as of 2nd Quarter 2010 is 28,000 jobs. This is a 13 percent contraction from its peak in 2008. In 2008, as illustrated by Figure 1, wage and salary positions totaled more than 32,000 jobs. • While construction has lost 2,500 jobs since 2007, approximately 2,500 jobs were gained since 2000 netting out the losses. Although employment levels have returned to their 2000 level, the losses of the construction industry have been netted out by the gains in other industries. Industries with the largest gains since 2000 were: o Health Care and Social Assistance industry added 600 jobs; o Arts, Entertainment, and Recreation added 700 jobs; and o Accommodation and Food Services, though it sustained losses off its 2008 peak, added nearly 700 positions. • From 2000 to 2008, while wage and salary employment increased at an annual rate of 1.7 percent, the number of sole proprietors increased at a rate of 4.4 percent. In Eagle County, sole proprietors account for approximately 23 percent of the total workforce, as illustrated in Figure 2. In 2000, there were approximately 8,700 proprietors, and by 2008, the total had increased to more than 12,200, an increase of more than 40 percent. o Though data will not be available for nearly two years, it is likely that the number of proprietors also contracted from 2008 to 2010. Assuming a uniform 13 percent contraction, the estimated 2010 total of proprietors would still be 23 percent higher than it was in 2000. • Adjusted for inflation, average county wages have fallen 12 percent since 2008 and are 1.7 percent lower than real wages were in 2000.Similar to the wage and salary job trends; overall wages for the County have contracted since 2008 as illustrated by Figure 1. • Future economic trends must be tracked closely. While some data show that the economic recovery has been established in some markets across the country, the trends are not evident in Eagle County at this time. EPS research conducted for higher-priced inventory shows that a correction occurred in mid-2010. This correction may signify the return of higher income buyers and part-time residents, and may signify a return to a normalized Eagle County economy. The Town of Vail should track a range of metrics and measure the rate of recovery and the degree to which the market indicators move into historic ranges, when performance was strong. If the market does not continue to solidify, the Town is advised to proceed with this development slowly and with clearly identified exit strategies. 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 4 20908-DM-030111 Market Conditions Housing market conditions and trend data come from the regional Multiple Listings Service (MLS). Data have been analyzed from the first quarter 2004 through the fourth quarter 2010. Sales Volume As described previously, the construction industry contracted approximately 50 percent from its peak in 2007. Similarly, the volume of housing sales contracted 48 percent after 2007, as illustrated in Figure 3 and in Table 1. • Sales volume in 2010 was 757, or 54 percent of average annual volume from 2004 to 2008. From 2004 to 2008, average annual activity was 1,412 units. In 2009, volume decreased more than 64 percent to 504 units sold, or 36 percent of previous levels. In 2010, sales volumes have increased most in the Upper Valley, followed by the Mid Valley and Lower Valley respectively. o In 2010, there were 243 sales in the Upper Valley. A majority of the increase in activity was due to increased activity at prices above $600,000. The volume for units priced below $438,000 was 37 units. o In 2010, there were 354 sales in the Mid Valley. A large increase in volume came from the sale of units priced below $438,000. Sales volume at this price point was 93 units. o In 2010, there were 160 sales in the Lower Valley. Most of the activity is due to units priced below $438,000. Volume at this price point was 107 units. Price Trends Sales price trends in Eagle County have fluctuated widely in the past few years. On a per- square-foot basis, average prices peaked in late 2008 in each of the geographies, as illustrated by Figure 4. • Average prices in the Upper Valley are currently $900/sqft. This is a contraction of 34 percent from their 1stquarter 2009 peak to the 1stquarter 2010. Average prices (of attached and detached product) in the 1stquarter 2009 had increased to $1,100/sqft, or 155 percent over their 1st quarter 2004 average of $430/sqft. In 2010, Upper Valley sales have increased by 23 percent above the 1st quarter 2010. • Average prices in the Mid Valley are currently $430/sqft. This is a contraction of 25 percent from their 3rd quarter 2008 peak. In the 3rd quarter 2008, prices had escalated to $574/sqft or nearly 60 percent above the 1st quarter 2004 average of $365/sqft. • Average prices in the Lower Valley are currently $190/sqft. This is a contraction of 26 percent from their 2nd quarter 2008 peak. In the 2nd quarter 2008, average prices had increased 46 percent to $255/sqft over the average of $175/sqft in 2004. 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 5 20908-DM-030111 Units Priced Under $438,000 Using the conforming loan limit of $417,500 and assuming a five-percent downpayment, EPS assessed the market for units priced at $438,000 or lower, as shown in Figure 5. • Sales volume in 2010 was 237, or 31 percent of the total market. Today’s volume is 54 percent of the average annual volume at this price point for the period 2004 to 2008. During the contraction in 2009, volume dropped to 154 units. o In the Upper Valley, there were 37 sales in 2010 at this price point. This is a decrease from the average 70 units sold per year from 2004 to 2008, but an increase over the 27 units sold during 2009. o In the Mid Valley, there were 93 sales in 2010 at this price point. This is a decrease from the average 199 units sold per year from 2004 to 2008, but an increase over the 51 units sold during 2009. o In the Lower Valley, there were 107 sales in 2010 at this price point. This is a decrease from the average 203 units sold per year from 2004 to 2008, but an increase in the 76 units sold during 2009. • Sales prices per square-foot in 2010 averaged $237 for all geographies at this price point. From 2004 to 2008, average prices per square foot were approximately $262 at this price point. o In the Upper Valley, prices average $385 per square-foot in 2010.This is a decrease from the average prices in previous years. From 2004 to 2008, prices averaged $393, and in 2009, prices averaged $478 on thin volume. o In the Mid Valley, prices average $266 per square-foot in 2010. This is a decrease from the average of $281 from 2004 to 2008 and a decrease from 2009, which was $292 per square-foot. o In the Lower Valley, prices average $186 per square-foot in 2010.This is a decrease from average prices from 2004 to 2008, which were $198 and $203 in 2009. Conclusions • Absorption. EPS believes the most comparable set of sales reflect those in the lowest price point, located in the mid valley. If the Town can capture 10 percent of this sales volume (93 sales per year), it can sell approximately 9 units annually, based on the performance of this submarket in 2010. If the Town can capture 5 percent of all Eagle County sales at this price point and below (237 sales), annual sales rates translate to approximately 12 units. These capture rates will drop when the Town performs a more refined segmentation analysis and narrows the proposed price banding. As the Town refines its development program and proposed pricing, it should further segment these sales records to understand pricing tolerances of the market and the segment which will receive the greatest demand. • Price Points. Recent sales at this price point indicate that most occur in the Mid Valley between $200/sqft and $350/sqft. This accounts for all ranges of products and all ages of structures. The data indicate that these units are relatively old (built in the early 1990’s) and with an average size of approximately 1,200 square feet. It is recognized that the Town 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 6 20908-DM-030111 could likely build larger product and the corresponding price per square foot will drop. EPS has established a price and size ratio, as depicted in Figure 7, which provides the parameters for pricing relative to square footage. • Competitive Position. Locations up valley will command a premium toward the higher end of this range, as will new product. Both will make the project compelling. Although a deed restriction will negatively impact the potential price point, it will not outweigh the premiums for location and new structures. 10/16/2012 Figure 1 Wage & Salary Employment Vail Chamonix Market Study Update Figure 2 Total Employment 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 8 20908-DM-030111 Vail Chamonix Market Study Update 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 9 20908-DM-030111 Figure 3 Total Sales Volume by Price Category Vail Chamonix Market Study Update 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 10 20908-DM-030111 Table 1 Sales Statistics by Time Period Vail Chamonix Market Study Update Upswing:Contraction:Stabilization:Upswing:Contraction:Stabilization:Upswing:Contraction:Stabilization: 2004 to 2008200920102004 to 2008200920102004 to 200820092010 Upper Valley Less than $438,000$393$478$385702737856832953 $438,000 to $600,000$480$458$4235113231,2081,2381,356 Greater than $600,000$933 $826 $1,067 187 86 183 2,465 2,541 2,610 Subtotal$735$714$9023081262431,8892,0402,239 ---97%123%---41%79%---108%119% Mid Valley Less than $438,000$281$292$26619951931,1831,2291,208 $438,000 to $600,000$361$304$29711627421,6681,8142,005 Greater than $600,000$566 $504 $516 447 181 219 3,436 3,817 3,837 Subtotal$461$441$4247622593542,5793,0982,929 ---96%92%---34%46%---120%114% Lower Valley Less than $438,000$198$203$160203761071,6081,6971,947 $438,000 to $600,000$225$180$1787719202,4023,0342,947 Greater than $600,000$262 $249 $276 62 24 33 3,414 4,095 4,644 Subtotal$216$209$1863421191602,1122,3942,628 as % of 2004-2008---97%86%---35%47%---113%124% Source: Eagle County MLS; Economic & Planning Systems H:\20908-Vail Chamonix Market Update\Data\[20908-MLS-2011.xlsx]Table 2 Average Prices / SqFtAverage Annual AbsorptionAvera ge Unit Sizes 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 11 20908-DM-030111 Figure 4 Overall Average Prices per Square-Foot by Geography Vail Chamonix Market Study Update 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 12 20908-DM-030111 Figure 5 Prices per Square Foot by Geography under $438,000 Vail Chamonix Market Study Update 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 13 20908-DM-030111 Figure 6 Volume by Unit Type by Geography under $438,000 Vail Chamonix Market Study Update 10/16/2012 Memorandum February 28, 2011 Chamonix Market Study Update Page 14 20908-DM-030111 Figure 7 Units Sold under $438,000 by Price/SqFt and Size Vail Chamonix Market Study Update 10/16/2012 Housing Needs Assessment Update 2012 Venturoni Surveys & Research, Inc. Linda Venturoni, President Jim Westkott, Senior Economist and Demographer Economic Council of Eagle County Kathy Chandler-Henry, Director of Research 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 2 Eagle County Housing Needs Assessment Update 2012 Table of Contents Introduction . . . . . . . . . 5 2007 Housing Needs Assessment: An Overview. . . . . 7 Housing Needs Assessment: 2012 Update . . . . . 8 Housing Needs Summary . . . . . . 9 Explanation of Housing Needs Estimates: Catch-Up Needs . . 10 Explanation of Housing Needs Estimates: Keep-Up Needs . . 12 Nexus and Proportionality: 2012 Update . . . . . 15 Area Median Income . . . . . . . 15 Income Distribution of Eagle County Households . . . 16 Rental Limits and Affordable Housing Prices . . . . 16 Affordability Gap . . . . . . . 17 Level of Service Estimate: the Mitigation Rate . . . 18 Conclusions and Recommendations . . . . . . 21 Appendices . . . . . . . . . 24 The mission of the Eagle County Housing Department is to provide innovative, affordable housing solutions to the working people, elderly and disadvantaged members of the Eagle County community. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 3 Eagle County Housing Needs Assessment Update 2012 Index of Tables Table 1. Eagle County Housing Needs, 2007 Table 2. Population, Jobs and Employment 2007 – 2011 Table 3. Cost Burdened Households in Eagle County 2008 – 2010 Table 4. Eagle County Housing Needs, 2011 – 2020 Table 5. Catch-Up Needs Generated by In-Commuting Employees Table 6. Jobs Forecast in Eagle County, 2010 – 2020 Table 7. Estimate of Housing Needed to Fill New Jobs 2011 – 2020 Table 8. Estimate of Housing Needed to Fill Jobs Vacated by Retirees, 2011-2020 Table 9. Area Median Income by Household Size Table 10. Income Distribution by Housing Tenure Table 11. Affordability Gap Table 12. Level of Service Estimates/Mitigation Rate 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 4 Eagle County Housing Needs Assessment Update 2012 Appendices Housing Data: Table H-1: Estimate of Housing Needed to Fill Jobs Vacated by Retirees, 2011 - 2020 . . . 24 Economic Data: Table E-1: Total Jobs in Eagle County . . . . 27 Table E-2: Personal Income by Component . . . 29 Population Data: Table P-1: Population by Municipality . . . . 31 Table P-2: Population by Age . . . . . 32 Table P-3: Population, Households and Housing Units . . 33 Table P-4: Households by Type . . . . . 34 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 5 Eagle County Housing Needs Assessment Update 2012 Introduction Eagle County completed a Housing Needs Assessment in 2007, and a Nexus Proportionality study in 2008. The results of those two analyses were used as a basis for its 2009 Housing Guidelines. Economic conditions in the United States, Colorado, and Eagle County have changed drastically since 2007-2008. Eagle County has gone from full employment (under 3%) to a rate of almost 9% unemployment in 2011. Because 2007 was the height of the pre- recession growth period, the 2007 Housing Needs Assessment defined a need for affordable worker housing at its peak in recent years. Calculations in the 2008 Nexus study targeted ownership housing for workforce families earning 140% of Area Median Income (AMI). The 2009 Eagle County Local-Resident Housing Guidelines Section 1-100 begins with this statement of need: Eagle County faces a substantial County-wide gap in the availability of ownership and rental housing that is affordable for local residents. Households are burdened by high housing payments, and employees are forced to commute long distances. Overcrowding is common. Jobs remain unfilled, negatively impacting business operations, and the vast majority of employers believe that the availability of workforce housing is a critical or major problem in Eagle County. Housing problems have long been recognized in Eagle County. Eagle County commissioned housing needs assessment studies, completed in 1990, 1999 and 2007, that demonstrated these needs. During 2011, Eagle County Housing and Planning Department staff met with private and municipal planners to review and discuss the 2009 Housing Guidelines. Participants in those meetings were in agreement that housing guidelines are still appropriate in Eagle County, that housing needs follow economic growth and recession cycles, and that 2012 is an appropriate time to review, simplify, and possibly modify the guidelines. The purpose of this update is to examine the assumptions made in 2007 and 2008, update the data for current conditions, and make recommendations for possible modifications to the 2009 Housing Guidelines. While traditional needs assessments rely extensively on survey data, which is expensive and time-consuming to collect, this update provides recommendations based on data 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 6 that is generated or updated annually. Data from public sources including the US Census, State Demographer, Comprehensive Housing Affordability Strategy (CHAS), Bureau of Economic Analysis, Labor Market Information, Economic Council of Eagle County, Eagle County Clerk and Recorder, Eagle County Assessor, and the American Community Survey are used to populate tables. This update was developed to allow timely modifications to the assessment of housing needs, triggered by changes in metrics based on these publically-accessible data sources. The current housing situation in Eagle County is described through demographics, workforce data, and housing units. Current and projected housing gaps by AMI level are identified. A major focus of this analysis is “cost-burdened” households (those paying more than 30% of their income for housing costs). Rental and ownership housing are both included in the analysis. The analysis is completed at the County level, inclusive of municipalities and unincorporated County areas. The report is organized into four sections: an overview of the 2007 Housing Needs Assessment; the 2012 update to the Needs Assessment; an explanation of and update to the 2008 Nexus/Proportionality Study; and a final section that includes recommendations for consideration when revising Housing Guidelines. Data sources are footnoted throughout the report. Additional data tables are provided in the Appendices. The update is intended to be an objective analysis of data that can be used for policy recommendations. This report was researched and prepared as a joint project between Venturoni Surveys & Research, Inc., and the Economic Council of Eagle County. It is presented to the Housing Department of Eagle County for use in development and potential revisions of housing policies and guidelines. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 7 2007 Housing Needs Assessment: An Overview The 2007 Needs Assessment, by estimating a housing need of over 12,500 units, established a strong urgency for a wide range of affordable housing initiatives, including the 2009 Guidelines for new development. In addition, a “Nexus/Proportionality Analysis for Commercial Development” was used to create a mitigation formula of units to be built, or fees to be paid in lieu of construction.1 The 2007 report estimated a total number of housing units needed by employees in Eagle County, both to fill existing gaps in the market at the time (“catch-up” needs) and to accommodate future needs (“keep-up” needs). These future needs were based on economic and population growth projections through 2015. “Catch-up” needs included demand from unfilled jobs in 2007, workers commuting to Eagle County from other counties, and units needed to address overcrowding. “Keep-up” needs included housing demand from job growth and from replacement of retirees. The estimates of each of these components of the total needed units are shown in Table 1 below. Table 1. Eagle County Housing Needs, 20072 Type of Need Catch - Up Needs: 2007 Demand from Unfilled Jobs in 2007 1,420 In - Commuters 2,469 Units Needed to Address Overcrowding 557 Total Catch - Up Needs 4,446 Keep - Up Needs: 2015 Housing Demand from Job Growth 4,776 Demand from Replacement of Retirees 3,284 Total Keep - Up Needs 8,060 Total Housing Needs 12,506 1 See “Eagle County Nexus / Proportionality Analysis for Commercial Development / Workforce Housing Linkage”, prepared by RRC Associates, Inc./Rees Consulting, Inc., January 2008. 2 Eagle County Housing Needs Assessment, 2007 prepared by RRC Associates, Inc./Rees Consulting, Inc., December 2007, pp. 7 – 8, and 80 – 85. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 8 Housing Needs Assessment: 2012 Update Since the peak housing demand generated by the workforce in 2007, the number of jobs has dropped dramatically (a decline of 12% from 2007 to 2011). Rather counter- intuitively, the population continued to increase through 2010, albeit quite slowly compared to recent decades. Demographers3 believe that this divergence in the number of jobs and people has been accompanied by a considerable drop in labor force participation rates, as discouraged workers – those not seeking work – have not left the county. The loss in jobs of 12% is matched with a drop in the civilian labor force of only 6% over the same time period. Total population in the County grew about 5.1% from 2007 to 2011. Table 2. Population, Jobs and Employment 2007 - 20114 YEAR County Population Jobs Civilian Labor Force Employment Unemployment Unemployment Rate 2007 49,284 41,727 31,161 30,267 894 2.9% 2008 50,301 40,449 31,851 30,721 1,130 3.5% 2009 51,520 37,230 30,666 28,269 2,397 7.8% 2010 52,057 35,750 29,724 26,897 2,827 9.5% 2011 51,777 36,605 29,425 26,884 2,541 8.6% In spite of the slow population growth in the County, the drop in jobs has caused a corresponding drop in the need for employee housing. It is reasonable to assume that the demand for unfilled jobs is much less (there are more people, and fewer jobs). In addition, because of the dramatic decline in the county economy and persistent problems in the national and international economies, short- and middle- term expectations of job growth are significantly lower. Along with the drop in the number of units needed for employees in the County (caused by the recession) is a decline in the household income of workers and non- workers. This drop in income has made it difficult for many families to pay for housing. Recent data released by the U. S. Census Bureau show that approximately 45% of all households, (43.8% of owners and 46.5% of renters) in the county pay more than 30% of their income for housing-related expenses (see Table 3, below). 3 Staff, State Demography Office of Colorado Department of Local Affairs. 4 State Demography Office and Labor Market Information. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 9 Table 3. Cost Burdened Households in Eagle County 2008 - 20105 The estimate of the need for affordable housing (see Table 4, below) does not include any estimate of the number of units needed to overcome the problems of households that are “cost-burdened”. However, this is probably the largest and most evident part of the affordable housing problem in Eagle County. The number of cost-burdened households is high, and affects people who are already living in the county. This objective measure of cost-burdened households is provided through the American Community Survey on a three-year rolling basis, and is a good marker of success or distress in the affordable workforce housing market. Housing Needs Summary To provide a current estimate of “catch-up” and “keep-up” housing needed in Eagle County, a number of factors were considered. Table 4, below, shows the updated estimate of the components included in the 2007 Needs Assessment. The methodologies for preparing these new estimates are contained in the following paragraphs explaining Tables 5 – 8. The cumulative housing needs in 2015 are estimated at 4,572, which is only 37% of the need for 12,506 units predicted in 2007. By 2020, approximately 2,768additional housing units(for a ten-year total of 7,340)will be needed according to current projections. American Community Survey, 2012. 50.7% 19.6% 46.5% Owners with Mortgage Owners without mortgage Renters 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 10 Table 4. Eagle County Housing Needs, 2011 – 2020 Type of Need 2007 Est. 2011 Est. 2015 Est. 2020 Est. Catch - Up Needs Demand from Unfilled Jobs in 2007 1,420 200 In - Commuters 2,469 1,708 Units Needed to Address Overcrowding 557 600 Total Catch - Up Needs 4,446 2,508 Keep - Up Needs Housing Demand from Job Growth 4,776 994 1,400 Demand from Replacement of Retirees 3,284 1.070 1,368 Total Keep - Up Needs 8,060 2,064 2,768 Total Housing Needs 12,506 4,572 (2011+2015) 7,340 (2015+2020) Explanation of Housing Needs Estimates: Catch-Up Needs Demand from Unfilled Jobs In 2007, researchers estimated that Eagle County needed 1,420 housing units to attract employees to fill vacant positions. This was based on an employer survey regarding unfilled jobs, estimated at 4,089, and a combination of assumptions (including that of a tight labor market) “concerning the number of unfilled jobs and the number of employees living in Eagle County and available for work”6. These factors have all changed now, considerably lowering this need: the number of unfilled jobs is much lower and the labor market is less tight. The annual Workforce Survey conducted by the Economic Council7 indicates that while workforce housing is still a need for area employers, it is much less of an issue than in 2007. For this update, it is assumed that this number of housing units needed for unfilled jobs is quite small (200 units). In-Commuters The 2007 Assessment also estimated a catch-up need of housing for in-commuters. This was based on an estimate by the State Demography Office/Department of Local Affairs (SDO/DOLA) of the percentage of workers who were in-commuters (18.3%). Eagle County Housing Needs Assessment, 2007, p. 80. Economic Council of Eagle County, 2011-2012 Workforce Survey. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 11 An in-commuter survey indicated that 70% of these workers would prefer to live in Eagle County. The 2011 SDO/DOLA updated its estimate of the percent of the workforce that are in- commuters to 12%. However, there is no new estimate of the percent of these who would move into the county if affordable housing were available to them. Using the same percentage as the 2007 survey result, the number of employees who would move into the county is 2,562 and the number of housing units needed for them would be 1,708 (see Table 5). Table 5. Catch-Up Needs Generated by In-Commuting Employees 2007 2011 Total Jobs 41,727 36,605 Average Jobs per Employee 1.2 1.2 Total Employees 34,773 30,504 In-Commuters 6,351 3,661 % of Total Employees 18.3% 12.0% # who would move to Eagle County (70%) 4,446 2,562 Employees per household 1.8 1.5 TOTAL HOUSING UNITS NEEDED 2,469 1,708 Units Needed to Address Overcrowding The 2007 Household Survey found that 9.8% of Eagle County households lived in overcrowded conditions (defined as having more than 1.5 residents per bedroom). This equated to 1,855 households. Assuming that “an increase in the supply of workforce housing equal to about 30% of the number of overcrowded units will largely address overcrowding to the extent practical”8, the 2007 report estimated that 557 units were needed at that time for this purpose. Applying the same percentage to the total number of occupied housing units (households) in 2011 yields an estimate of 1,889 overcrowded units. Multiplying this number by 30% produces an estimate of 567 units needed to address the problem of overcrowding. However, given the effects of the recession, it is likely that the percentage of occupied overcrowded housing units is currently somewhat higher. Using an estimate of just under 32% produces a total of 600 units needed to address overcrowding in 2011. Eagle County Housing Needs Assessment, 2007, p. 83. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 12 Explanation of Housing Needs Estimates: Keep-Up Needs Housing Demand from Job Growth The 2007 Needs Assessment used a jobs forecasts developed by SDO/DOLA. This forecast predicted a net gain of 4,400 jobs from 2007 to 2010 and an additional 10,316 jobs from 2010 to 2015. Because of the recession, the increase of 4,400 jobs never materialized; the number of jobs actually declined by almost 6,000 (5,977) from 2007 to 2010. Furthermore, the forecasts of increases from 2010 to 2015 and beyond are significantly reduced. Current SDO/DOLA forecasts show job growth occurring at average annual growth rates of 4.0% to 2013, 3.5% to 2015, and 3.0% to 2020. Even these forecasts may be too high, and revisions later in 2012 will show lower numbers. The forecasts provided below in Table 6 provide a basis for an initial set of estimates of housing demand from job growth. The assumptions of this revised forecast are that job growth in the national economy will continue to grow at a slow pace (0.8%) through 2013 and then at the rate of 1.5% to 2015. During this period, Eagle County’s annual average rate of job growth can be expected to be somewhat higher, 1.5% through 2013 and 2.5% from 2013 to 2015. In the five years after that, 2015 – 2020, annual average job increases are likely to be higher, in the range of 3% - 4% or more. The slow job growth rate in the national economy is the result of both national and international woes, e.g., the U. S. government debt, and the Eurozone bailouts of struggling national economies (Greece, Portugal, Spain). The stronger expected growth in Eagle County jobs is mainly because of strong increases in the number of retirees, particularly in the Colorado metropolitan Front Range, but also in other parts of western United States. These retiree households in one way or another – as day or destination tourists, as second home occupants, or as resident retirees – will make greater use of the scenic and recreational resources of the county. Their presence, in turn, will create greater needs for tourism-related services and household and health care. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 13 Table 6. Jobs Forecast in Eagle County, 2011 - 2020 2011 2013 2015 2020 Eagle County Number of Jobs 36,605 37,711 39,620 42,100 Average Annual % Change 1.5% 2.5% 3.9% United State Number of Jobs (x 1,000) 131,360 134,500 140,000 147,000 Average Annual % Change 1.2% 2.0% 1.0% Applying this revised jobs forecast to the 2007 Needs Assessment template for estimating housing needs to fill new jobs results in generated housing demands of 610 in 2013, 1,000 in 2015, and 1,400 in 2020 (see Table 7). Table 7. Estimate of Housing Needed to Fill New Jobs 2011 - 2020 2011 2013 2015 2020 Total Forecasted Jobs 36,605 37,400 39,300 42,100 Increase in Jobs over Prior Period 1,100 1,900 2,800 Jobs per Employed Person 1.2 1.2 1.2 New Employed Persons Needed 920 1,590 2,335 Employed Persons/Housing Unit 1.5 1.6 1.7 Housing Demand Generated (Units) 610 1,000 1,400 Housing Demand from Replacement of Retirees In this update, the demand for affordable housing from the workers required to replace retiring members of the workforce is calculated in a different way than in the 2007 Needs Assessment. In that 2007 report, it was estimated that 40%, or 5,911, of the workers between 57 and 64 in 2007 would retire by 2015. Assuming the number of employees (employed persons) per household was 1.8, this resulted in a housing demand of 3,284 units. In this update, the number of retirees by five-year age groups over 50 is estimated on the basis of declines in their labor force participation (defined as retirement rates) during the periods 2011 - 2015 and 2016 – 2020. These new estimates of housing demand from the replacement of retirees – 1,070 and 1,368 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 14 respectively – are much lower than in the 2007 Needs Assessment report (for a full explanation of this chart, see Appendix I). Table 8. Estimate of Housing Needed to Fill Jobs Vacated by Retirees, 2011 - 20209 2011 - 2015 AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 3,711 0.81 3,021 0.07 216 0.982 213 1.6 133 55 – 59 3,081 0.76 2,328 0.23 540 0.973 525 1.5 350 60 – 64 2,519 0.58 1,458 0.40 576 0.960 553 1.4 395 65 – 69 1,533 0.35 538 0.24 127 0.936 119 1.3 91 70 – 74 738 0.27 199 0.42 84 0.906 76 1.2 63 75 – 79 408 0.15 63 0.52 33 0.854 28 1.1 25 80 – 84 201 0.07 15 1.00 15 0.749 11 1.0 11 TOTAL 12,191 7,621 1,591 1,525 1,070 2016 - 2020 AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 4,071 0.82 3,343 0.06 206 0.983 202 1.6 127 55 – 59 3,800 0.77 2,930 0.20 583 0.974 568 1.5 379 60 – 64 3,107 0.62 1,919 0.36 682 0.960 655 1.4 468 65 – 69 2,513 0.40 996 0.27 265 0.939 249 1.3 192 70 – 74 1,510 0.29 439 0.40 174 0.905 157 1.2 131 75 – 79 710 0.18 125 0.48 60 0.849 51 1.1 46 80 – 84 378 0.09 33 1.00 33 0.755 25 1.0 25 TOTAL 16,089 9,785 2,003 1,908 1,368 (Note: LFPR = Labor Force Participation Rate) 9 Source of data on population and labor force participation rates: State Demography Office, Colorado Department of Local Government. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 15 Nexus and Proportionality: 2012 Update In addition to the Housing Needs Assessment completed in 2007, the County utilized a “Nexus and Proportionality” study from 2008 to inform the Housing Guidelines. Although not technically part of this Housing Needs Assessment update, several tables in the Nexus report are key to the County’s Housing Guidelines. The following tables are explained and revised here using current data: • Area Median Income by Household Size • Income Distribution of Eagle County Households • Rental Limits and Affordable Housing Prices • The Affordability Gap • Level of Service Estimates/Mitigation Rate Area Median Income Federal, state and local housing programs are typically based on an anchor to Area Median Income, or AMI. AMI is calculated annually by the US Department of Housing and Urban Development. Eagle County figures for 2012 are shown below, along with a comparison to 2007 for 100% AMI levels. Table 9. Area Median Income by Household Size, 201210 Household Size AMI Level 1-person 2 persons 3 persons 4 persons 5 persons 50% AMI $29,700 $33,925 $38,175 $42,400 $45,800 60% AMI $35,640 $40,710 $45,810 $50,880 $54,960 80% AMI $47,520 $54,280 $61,080 $67,840 $73,280 100% AMI $59,400 $67,850 $76,350 $84,800 $91,600 120% AMI $71,280 $81,420 $91,620 $101,760 $109,920 140% AMI $83,160 $94,990 $106,890 $118,720 $128,240 100% AMI Comparison, 2007 and 2012 AMI Level 1-person 2 persons 3 persons 4 persons 5 persons 100% - 2007 $56,800 $64,900 $73,000 $81,100 $87,600 100% - 2012 $59,400 $67,850 $76,350 $84,800 $91,600 Change 4.6% 4.5% 4.6% 4.6% 4.6% 10 Housing and Urban Development 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 16 Income Distribution of Eagle County Households Household income distribution by tenure (renter or owner) was calculated using 2005 – 2009 data from the Comprehensive Housing Affordability Strategy (CHAS) data. This data is available annually (although there is a lag) and can be used to update housing strategies. The table below shows that 68% of renters and 36% of owners (a total of 47% of all household types) earn less than 100% AMI. Table 10. Eagle County Income Distribution by Housing Tenure, 2005 - 200911 Renters Owners TOTAL AMI Level # % # % # % 30% AMI 1,395 24.69% 320 2.96% 1,715 10.41% Between 30% and 50% 745 13.19% 930 8.59% 1,675 10.17% Between 50% and 80% 920 16.28% 1,300 12.01% 2,220 13.47% Between 80% and 100% 780 13.81% 1,375 12.70% 2,155 13.08% 100% AMI 1,810 32.04% 6,900 63.74% 8,710 52.87% TOTAL 5,650 100.00% 10,825 100.00% 16,475 100.00% Rental Limits and Affordable Housing Prices The following table can be used to help determine the appropriate AMI levels to target through housing policies. Affordable housing prices were calculated assuming a 4% interest rate, a fixed mortgage amortized over 30 years, 10% down payment, and HOA/property taxes/insurance at 20% of the mortgage payment. Affordable rent is calculated at 30% of monthly income. 11 CHAS Data, 2005 – 2009 Analysis 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 17 Table 11. HUD Median Income/Rental Rate Guidelines12 Median Income Information County Eagle AMI $84,800 % of Median Income for Area No. of Persons Occ. 200% 140% 120% 100% 80% 50% 30% 1 $118,800 $83,160 $71,280 $59,400 $47,520 $29,700 $17,820 2 $135,700 $94,990 $81,420 $67,850 $54,280 $33,925 $20,355 3 $152,700 $106,890 $91,620 $76,350 $61,080 $38,175 $22,905 4 $169,600 $118,720 $101,760 $84,800 $67,840 $42,400 $25,440 5 $183,200 $128,240 $109,920 $91,600 $73,280 $45,800 $27,480 6 $196,800 $137,760 $118,080 $98,400 $78,720 $49,200 $29,520 Rent Limits Studio 1 $2,970 $2,079 $1,782 $1,485 $1,188 $743 $446 1 bdrm 1.5 $3,181 $2,227 $1,909 $1,591 $1,273 $795 $477 2 $3,393 $2,375 $2,036 $1,696 $1,357 $848 $509 2 bdrm 3 $3,818 $2,672 $2,291 $1,909 $1,527 $954 $573 3 bdrm 4 $4,240 $2,968 $2,544 $2,120 $1,696 $1,060 $636 4.5 $4,410 $3,087 $2,646 $2,205 $1,764 $1,103 $662 4 bdrm 5 $4,580 $3,206 $2,748 $2,290 $1,832 $1,145 $687 6 $4,920 $3,444 $2,952 $2,460 $1,968 $1,230 $738 Ownership Housing 1 Studio 1 $592,000 $415,000 $355,000 $296,000 $237,000 $148,000 $89,000 1BR 2 $632,000 $442,000 $379,000 $316,000 $253,000 $158,000 $95,000 2BR 3 $711,000 $498,000 $426,000 $355,000 $284,000 $178,000 $107,000 3BR 4 $789,000 $553,000 $474,000 $395,000 $316,000 $197,000 $118,000 4.5 $821,000 $575,000 $493,000 $411,000 $328,000 $205,000 $123,000 5 $853,000 $597,000 $512,000 $426,000 $341,000 $213,000 $128,000 6 $916,000 $641,000 $550,000 $458,000 $366,000 $229,000 $137,000 Affordability Gap The figures in Table 11, above, can be used to calculate the affordability gap for different AMI levels. According to the 2008 Nexus/Proportionality Analysis, “The difference between prevailing market prices and what targeted low-income households can afford to pay for housing is the gap that must be taken into consideration when determining the amount of fee that could be paid in lieu of producing units under certain circumstances.” 13 12Analysis and calculations using HUD AMI data 13Nexus/Proportionality Analysis for Commercial Development/Workforce Housing Linkage, January 2008, RRC Associates, Inc., Rees Consulting, Inc. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 18 Table 11. Affordability Gap14 2007 100% AMI 2012 100% AMI 2012 120% AMI 2012 140% AMI Target Income Point (3 person HH) $73,000 $76,350 $91,600 $106,890 Affordable Monthly Housing Pmt. $1,825 $1,909 $2,290 $2,672 Property Taxes/ Insurance/HOA (20%) $365 $382 $458 $534 Mortgage Payment $1,460 $1,527 $1,832 $2,138 Max Mortgage Amount $231,000 $319,500 $383,400 $448,200 Affordable Purchase Price $243,150 $355,000 $426,000 $498,000 Average Sq. Ft. of Units 1,000 1,000 1,000 1,000 Median Price/Sq. Ft. $385 $396 $396 $396 Market Cost/Unit $385,000 $396,000 $396,000 $396,000 Affordability Gap $141,850 $41,000 -$30,000 -$102,000 The affordability gap, plus any desired administrative fees, can be used to assess a payment in lieu of constructing new units. The table above shows that the affordability gap has lessened considerably since 2007, due in large part to lower mortgage interest rates. In 2007, a typical mortgage incurred 7% interest; the 2012 update was calculated using a 4% rate. Households earning more than 100% AMI do not have an affordability gap; it is appropriate in the post-2008 economy to target Eagle County housing guidelines to those households earning 100% AMI and below. Level of Service Estimates: the Mitigation Rate The 2008 Nexus/Proportionality Analysis calculated a 55% mitigation rate, based on the belief that “55% of all households generated by jobs in Eagle County live in the county and have incomes equal to or less than 140% AMI.” (page 3) This 55% was a target service level to address through housing guidelines and policies. Using the same methodology in 2012 produces a mitigation rate of 41%. The percentage of commuters was revised to include only those commuters likely to want to move to Eagle County. Comparison pie charts are shown below: 14Analysis and calculations using HUD AMI data and Eagle County real estate sales data. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 19 Table 12. Level of Service Estimates Because the methodology for calculating mitigation rates, above, makes several unverifiable assumptions (about commuters, and about household distribution rates), and does not take into account potential differences between renters and owners, the authors of this update recommend using cost-burdened percentages to determine level of service estimates and proposed mitigation rates. Households with Incomes > 140% AMI 27% In-Commuters 18% Households with Incomes 140% AMI 55% Level of Service Estimate 2008 Households with Incomes > 100% AMI 47% In-Commuters 12% Households with Incomes 100% AMI 41% Level of Service Estimate 2012 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 20 From Table 3 on page 9 (repeated below), we see that 45% of Eagle County’s households are cost-burdened (43.8% of all owners and 46.5% of renters). Using the cost-burdened percentages generated through analysis of CHAS (Colorado Housing Affordability Strategy) data produces a result consistent with the 2008 study methodology, but provides a more easily replicable and defensible source of data. Table 3. Cost Burdened Households in Eagle County 2008 - 201015 American Community Survey, 2012. 50.7% 19.6% 46.5% Owners with Mortgage Owners without mortgage Renters 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 21 Conclusions and Recommendations This update to the Housing Needs Assessment is intended to be factual and supported by accessible data sources. A few conclusions and recommendations are included in this final section, for use in informing future housing policies in Eagle County. Retiree Housing and Its Impact on Workforce Housing Table 8 of this report (page 14) shows the number of new workers needed to replace current Eagle County workers who retire. As current workers retire, their housing units change in status from units that house workers to units that do not house workers (assuming the retirees stay in their homes). The new employees who fill the jobs vacated by retired workers create a demand for new housing units. If retired workers move to retirement housing options, their former housing units can house future workers and remain in the workforce housing status. It is important to note that the retiree numbers in the report do not include second homeowners or amenity-seeking retirement migrants who may retire to Eagle County in the future. Both of these in-migration trends have been well documented and show up in the increase in the senior population from 2000-2010, and the projected higher increases in the future 65+ population. Given these established trends, we recommend that the County Housing Department pursue the development of appropriate senior retirement housing options that can provide for the future housing and health care needs of the elderly population. These retirement housing options would free up existing housing units that can be used for workforce housing needs. Focus on Rental Housing While the 2007 Housing Needs Assessment, the 2008 Nexus/Proportionality Study, and the 2009 Housing Guidelines focused most of the attention on ownership housing, it is clear from a review of the updated data that inclusion on rental housing is appropriate in 2012. The most recent data shows that 46.5% of all renters are cost burdened (paying more than 30% of their income for housing). It is harder to qualify for a mortgage than in the past due to a tighter credit market, and new employees moving to the County may be reluctant to purchase because they fear the housing market has not yet “hit bottom,” and/or they may be uncertain about their long-term employment status. For these reasons, we recommend that the County Housing Department consider rental housing in revisions to the Housing Guidelines. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 22 Three Major Findings Three major changes to the recommendations of the 2007 and 2008 studies emerged in this update: 1. Shift from 140% AMI to 100% AMI. While the 2007 study (and subsequent guidelines) recommended focusing on households earning 140% of AMI, this update shows that the affordability gap emerges at 100% AMI (see Table 11, page 18). Sixty-eight percent of renter households (3,842 households) earn less than 100% AMI (see Table 10, page 16); 36% of owner households (3,572) fall into this AMI category. 2. Shift from 55% to 45% Mitigation Rate. The 2008 Nexus/Proportionality study recommended a mitigation rate of 55%, based on the belief that “55% of all households generated by jobs in Eagle County live in the county and have incomes equal to or less than 140% AMI.” (page 3) Using what we believe is a more solid methodology for targeting housing policies (cost-burdened households), we recommend a 45% mitigation rate. 3. Reduction in Number of Housing Units Needed. The 2007 Housing Needs Assessment calculated a need for 12,506 housing units, both to catch-up with unmet demand and to meet future needs. Table 4 on page 10 and the subsequent explanatory paragraphs and tables reduce this need to 2,472 by 2015 and 7,340 by 2020 (cumulative). We feel that this is a reliable estimate based on current demographics, job forecasts, and trends. Future Updates to the Housing Needs Assessment The researchers designed this study to be replicated in the future, using current data to update tables and calculations. A focus on cost-burdened households through new American Community Survey/CHAS data allows a way to assess the success of future housing policies (a reduction in the 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 23 number of cost-burdened households could indicate success). This data can be monitored annually. The 2007 Needs Assessment included four different surveys: household, in-commuting employees, employer, and realtor/property manager. Collecting data through surveys allows a broader and more qualitative approach to housing planning and policies, and may allow analysis at smaller geographic levels. However, collecting data through surveys is time-consuming and expensive, and may not be justified given the rich data available through public sources. Future housing needs assessments will need to weigh the costs/benefits of conducting surveys. The Cyclical Nature of Eagle County’s Economy While the housing affordability gap is much smaller than in 2009, it may increase again with cyclical economic swings. Using the analysis techniques provided in this report provides a way to readily update housing guidelines and policies based on current conditions. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 24 APPENDIX H-1 Estimate of Housing Needed to Fill Jobs Vacated by Retirees, 2011 - 2020 In this update of the 2007 Housing Needs Assessment, the number of housing units needed for the “workforce required to replace members who retire” is estimated in a new way, based on the decline in labor force participation rates by five-year age groups. The following describes how these new calculations are made. Referring to the very first row on the table, the total population ages 50 to 54 in 2011 is 3,711. With a labor force participation rate (LFPR) of 0.81, then 3,021 of this age group are in the workforce. Four years later, in 2015, the LFPR of this cohort is 0.76, so the decline in LFPR is 0.81 – 0.76 or 0.05 which when divided by the beginning rate of 0.81 means that 0.05 / 0.81 or 7% of this cohort have retired or that its “retirement rate” is 0.07. Multiplying 0.07 times 3,021 (those in the workforce in 2011) equals 216, presumably the number of workers who retired during the five-year period. However, the five-year survival rate of this group is 0.982, which means that on average, only 213 of the 216 survived (3 died) by 2015. Finally, assuming that the number of workers or retirees per household for this age group is 1.6, this leads to the result that the number of housing units needed for the replacement workers is 133. These calculations are performed for each five-year age group from 50 – 84 and for two five-year time periods, 2011 – 2015 and 2016 – 2020. The total number of units for each period is presented in bold in the lower right-hand corner of each panel. The calculations were actually performed by gender – shown on the two lower panels – with the total (male and female) calculated as the sum (or the average rate) of the gender- specific results. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 25 Appendix H-1: Estimate of Housing Needed to Fill Jobs Vacated by Retirees, 2011 - 202016 2011 – 2015: All Retirees AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 3,711 0.81 3,021 0.07 216 0.982 213 1.6 133 55 – 59 3,081 0.76 2,328 0.23 540 0.973 525 1.5 350 60 – 64 2,519 0.58 1,458 0.40 576 0.960 553 1.4 395 65 – 69 1,533 0.35 538 0.24 127 0.936 119 1.3 91 70 – 74 738 0.27 199 0.42 84 0.906 76 1.2 63 75 – 79 408 0.15 63 0.52 33 0.854 28 1.1 25 80 – 84 201 0.07 15 1.00 15 0.749 11 1.0 11 TOTAL 12,191 7,621 1,591 1,525 1,070 2011 – 2015: Male Retirees AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 1,977 0.856 1,692 0.10 166 0.981 163 1.6 102 55 – 59 1,651 0.772 1,275 0.19 239 0.968 232 1.5 154 60 – 64 1,301 0.627 816 0.35 289 0.957 276 1.4 197 65 – 69 804 0.405 326 0.28 91 0.929 84 1.3 65 70 – 74 403 0.292 118 0.39 46 0.879 40 1.2 33 75 – 79 207 0.179 37 0.41 15 0.817 12 1.1 11 80 – 84 106 0.106 11 1.00 11 0.730 8 1.0 8 TOTAL 6,449 0.774 4,274 857 816 571 2011 – 2015: Female Retirees AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 1,734 0.766 1,328 0.04 50 0.987 50 1.6 31 55 – 59 1,430 0.737 1,054 0.28 300 0.977 293 1.5 196 60 – 64 1,218 0.527 642 0.45 287 0.963 277 1.4 198 65 – 69 729 0.291 212 0.17 36 0.956 34 1.3 26 70 – 74 335 0.242 81 0.48 39 0.937 36 1.2 30 75 – 79 201 0.127 26 0.69 17 0.885 15 1.1 14 80 – 84 95 0.040 4 1.00 4 0.805 3 1.0 3 TOTAL 5,742 0.700 3,347 734 709 498 16 Source of data on population and labor force participation rates: State Demography Office, Colorado Department of Local Government. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 26 2016 – 2020: All Retirees AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 4,071 0.82 3,343 0.06 206 0.983 202 1.6 127 55 – 59 3,800 0.77 2,930 0.20 583 0.974 568 1.5 379 60 – 64 3,107 0.62 1,919 0.36 682 0.960 655 1.4 468 65 – 69 2,513 0.40 996 0.27 265 0.939 249 1.3 192 70 – 74 1,510 0.29 439 0.40 174 0.905 157 1.2 131 75 – 79 710 0.18 125 0.48 60 0.849 51 1.1 46 80 – 84 378 0.09 33 1.00 33 0.755 25 1.0 25 TOTAL 16,089 9,785 2,003 1,908 1,370 2016 – 2020: Male Retirees AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 2,093 0.86 1,800 0.08 147 0.982 144 1.6 90 55 – 59 2,012 0.79 1,589 0.16 262 0.969 253 1.5 169 60 – 64 1,646 0.66 1,086 0.32 346 0.957 331 1.4 236 65 – 69 1,285 0.45 578 0.29 167 0.928 155 1.3 119 70 – 74 770 0.32 246 0.38 92 0.876 81 1.2 67 75 – 79 367 0.20 73 0.40 29 0.807 24 1.1 22 80 – 84 175 0.12 21 1.00 21 0.717 15 1.0 15 TOTAL 8,348 0.76 5,395 1,064 1,003 720 2016 – 2020: Female Retirees AGE GROUP Pop. LFPR In Wrkforce Retire. Rate New Ret’d 5-Yr Surv. Rate Surv. Retired Ret’d /Hhld Needed Housing 50 - 54 1,978 0.78 1,543 0.04 59 0.987 59 1.6 37 55 – 59 1,788 0.75 1,341 0.24 322 0.978 315 1.5 210 60 – 64 1,461 0.57 833 0.40 336 0.964 324 1.4 231 65 – 69 1,228 0.34 418 0.24 98 0.956 94 1.3 72 70 – 74 740 0.26 192 0.42 81 0.937 76 1.2 64 75 – 79 343 0.15 51 0.60 31 0.889 27 1.1 25 80 – 84 203 0.06 12 1.00 12 0.820 10 1.0 10 TOTAL 7,741 0.69 4,390 940 905 650 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 27 APPENDICES E-1 and E-2 Tables E-1 and E-2 provide some basic data on the Eagle County economy from 2002 through 2010. Table E-1 presents total jobs – both wage and salary and self-employed and proprietors – by industrial sector. Table E-2 provides information on personal income by component. While personal income has largely consisted of earnings by place of work (82% in 2002 and 75% in 2010) it also includes monies earned outside the county (residency adjustment), dividends, interest and rent, and personal transfer receipts from government (retirement and disability, medical, income maintenance, unemployment and veteran benefits) and from non-profits. The data on jobs shows growth from 2002 to 2007, and then declines from 2007 to 2010 as the result of the recession. The biggest growth in the first period and then decline in the second is in construction and construction-related fields, e.g., professional services, administrative and waste (includes temporary workers), some retail and, indirectly, real estate. The second general area of growth and decline is in tourism- related industries: accommodation and food services, retail trade, and other services (laundry and personal services). The data on personal income show strong growth in earnings by place of work during the periods 2002 – 2005 and 2005 – 2007 (6.5% and 10.0% per year, respectively) followed by a - 5.4% per year from 2007 – 2010. Dividends, interest and rent also grew strongly during the first two periods (10.1% and 13.6%) before declining a small amount (- 1.8%) during the latter period. Personal transfer receipts, which grew at 6.5% and 8.5% per year from 2002 – 2007, jumped up to 21.3% per year from 2007 to 2010. Proprietor’s income dropped - 4.2% per year from 2005 to 2007 (as earnings remained strong) but increased with the recession (2007 to 2010) as workers offset their earnings losses with other sources of income. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 28 APPENDIX E-1: Estimated Total Jobs by Industry, Eagle County, 2002 – 2010 2002 2005 2007 2010 2002 - 2007 2007 - 2010 Total Jobs 33,851 36,529 40,163 35,662 6,312 -4,501 Agriculture 123 191 186 203 63 17 Mining 7 11 14 17 7 3 Utilities 51 54 68 63 17 -5 Construction 5,356 5,316 6,329 3,900 973 -2,429 Construction of buildings 1,300 1,241 1,552 944 252 -608 Heavy construction 328 270 254 112 -74 -142 Special trade contractors 3,728 3,805 4,523 2,843 795 -1,680 Manufacturing 383 450 442 312 59 -130 Wholesale trade 439 482 524 528 85 4 Retail Trade 3,464 3,557 3,815 3,433 351 -382 Transportation and warehousing 555 581 653 536 98 -117 Information 328 377 512 399 184 -113 Finance activities 541 773 826 775 285 -51 Real estate 2,817 3,032 3,159 2,963 342 -196 Professional & business services 1,956 2,248 2,472 2,077 516 -395 Management of companies 215 154 153 157 -62 4 Admin and waste 1,600 1,897 2,197 1,941 597 -256 Education 155 287 278 255 123 -23 Health Services 1,547 1,675 2,028 2,023 481 -5 Arts 3,200 3,577 3,632 3,931 432 299 Accommodation and food 6,214 6,974 7,155 6,562 941 -593 Accommodation 2,478 2,898 2,852 2,683 374 -169 Food services, drinking places 3,736 4,076 4,303 3,878 567 -425 Other services, exc. govt. 2,160 2,208 2,836 2,460 676 -376 Government 2,740 2,686 2,884 3,128 144 244 Federal and state 363 352 353 383 -10 30 Local government 2,377 2,334 2,531 2,746 154 215 Total Jobs 33,851 36,529 40,163 35,662 6,312 -4,501 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 29 APPENDIX E-2: Personal Income of Residents by Components, Eagle County, 2002 – 2010, part 1 (In Millions of Dollars) Component 2002 2005 2007 2010 Total Personal Income Amt. % of Tl Amt. % of Tl Amt. % of Tl Amt. % of Tl Earnings by Place of Work $1,491 82% $1,792 81% $2,033 78% $1,881 75% Wage & Salary Disbursements $972 54% $1,174 53% $1,421 55% $1,205 48% Supplements to Wages & Salaries $181 10% $229 10% $255 10% $239 10% Proprietors Income $338 19% $388 18% $357 14% $437 17% Earnings by Place of Work $1,491 82% $1,792 81% $2,033 78% $1,881 75% - Payments for Government Social Ins. $(147) -8% $(182) -8% $(209) -8% $(182) -7% + Residency Adj. for Commuting $24 1% $26 1% $25 1% $34 1% = Net Earnings by Place of Residency $1,368 76% $1,635 74% $1,849 71% $1,733 69% + Dividends, Interest, Rent $387 21% $516 23% $666 26% $631 25% + Personal Transfer Receipts $56 3% $68 3% $80 3% $142 6% = Tl. Personal Income (Residents) $1,811 100% $2,219 100% $2,594 100% $2,507 100% Population (U.S. Census Bureau) 44,227 47,205 49,803 52,064 Per Capita Income (Actual $) $40,958 $47,004 $52,095 $48,149 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 30 APPENDIX E-2: Personal Income of Residents by Components, Eagle County, 2002 – 2010, part 2 Component Annual Average Pct. Change Total Personal Income '02 - '05 '05 - '07 '07 - '10 Earnings by Place of Work 6.3% 6.5% -2.5% Wage & Salary Disbursements 6.5% 10.0% -5.4% Supplements to Wages & Salaries 8.2% 5.4% -2.1% Proprietors Income 4.8% -4.2% 7.0% Earnings by Place of Work 6.3% 6.5% -2.5% - Payments for Govrnmt Social Ins. 7.4% 7.2% -4.5% + Residency Adj. for Commuting 1.6% -1.0% 10.9% = Net Earnings by Place of Residency 6.1% 6.3% -2.1% + Dividends, Interest, Rent 10.1% 13.6% -1.8% + Personal Transfer Receipts = Tl. Personal Income (Residents) Population (U.S. Census Bureau) Per Capita Income (Actual $) 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 31 APPENDIX P-1: Eagle County Population by Municipality, 2000 - 2011 The population of the county grew at an average annual rate of nearly 2% per year during the period 2000-2010. Eagle and Gypsum had the highest percentage growth during the decade. Most notable is the continued growth in the County during the years 2007 – 2010 when there was an 11% decline in jobs. Draft estimates for 2011 prepared by the State Demography Office show a modest decline (- 0.5%) from 2010 for Eagle County. Colorado State Demography Estimates Avg. Annual Rate Of Change Area July 2000 July 2005 July 2007 July 2010 July 2011* 00-05 05-07 07-10 10-11 EAGLE COUNTY 43,289 47,278 49,284 52,057 51,777 1.8 2.1 1.8 -0.5 Avon 6,124 6,570 6,524 6,413 6,375 1.4 -0.4 -0.6 -0.6 Basalt (Part) 2,031 2,470 2,630 2,919 2,899 4.0 3.2 3.5 -0.7 Eagle 3,071 4,289 5,371 6,483 6,459 6.9 11.9 6.5 -0.4 Gypsum 4,151 4,956 5,528 6,517 6,496 3.6 5.6 5.6 -0.3 Minturn 1,079 1,084 1,100 1,035 1,034 0.1 0.7 -2.0 -0.1 Red Cliff 298 298 293 269 267 0.0 -0.8 -2.8 -0.7 Vail 4,825 4,613 4,592 5,278 5,242 -0.9 -0.2 4.8 -0.7 Unincorp. Area 21,710 22,998 23,246 23,143 23,005 1.2 0.5 -0.1 -0.6 * Draft estimate, currently under review. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 32 APPENDIX P-2: Eagle County Population by Age, 2007 - 2015 Tables P-2A and P-2B show the population by age for the County. In contrast to the state, Eagle County has a higher proportion of its population in the age group 25 to 44 and a lower percentage over the age of 65. However, its proportion of population of the younger adults (25 to 44) has declined over the previous ten years and is expected to continue to do so through 2015. Concurrently, the percentage of the population over 65 in Eagle County has increased and is expected to do so more rapidly through 2015. Table P-2A. Population by Age, Eagle County, 2007 - 2015 2000 2007 2010 2015 Age Group Number % of Total Number % of Total Number % of Total Number % of Total 0 to 17 10,111 23% 11,941 24% 12,777 25% 16,062 26% 18 to 24 4,961 11% 3,720 8% 4,362 8% 4,198 7% 25 to 44 18,198 42% 19,308 39% 18,778 36% 20,542 33% 45 to 64 8,723 20% 11,981 24% 13,205 25% 15,715 25% 65 & Over 1,297 3% 2,334 5% 3,003 6% 5,328 9% Total 43,290 100% 49,284 100% 52,125 100% 61,845 100% Table P-2B. Population by Age, Eagle County and Colorado, 2000 - 2010 Eagle County Colorado 2000 2010 2000 2010 (numbers in thousands) Age Group Number % of Total Number % of Total Number % of Total Number % of Total 0 to 17 10,111 23% 12,777 26% 1,109 26% 1,228 24% 18 to 24 4,961 11% 4,362 9% 433 10% 489 10% 25 to 44 18,198 42% 18,778 38% 1,411 33% 1,432 28% 45 to 64 8,723 20% 13,205 27% 966 22% 1,347 27% 65 & Over 1,297 3% 3,003 6% 419 10% 555 11% Total 43,290 100% 52,125 106% 4,339 100% 5,051 100% 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 33 APPENDIX P-3: Population, Households, and Housing Units in Eagle County, 2000-2010 Table P-3 contains data on households and housing units. Not much has changed during the last decade in the relationship among these variables. The number of persons per household has remained constant at a little over 2.7. Occupancy rates (of residents) have been just above 60%, with owners constituting 64% of the occupied units and renters 36%. Approximately three-quarters the vacancies, or 30% of the total units, are for seasonal or recreational use. 2000 2005 2007 2010 Total Population 43,289 47,278 49,284 52,067 Group Quarters Pop. 353 353 353 55 Household Population 42,936 46,925 48,931 52,012 Persons per Household 2.73 2.74 2.75 2.71 Total Housing Units 25,145 28,711 30,271 31,390 Occupied Units (Households) 15,751 17,124 17,818 19,209 Occupancy Rate (Residents) 63% 60% 59% 61% Owner Occupied 10,033 12,326 Pct. of Occupied Units 63.7% 64.2% Renter Occupied 5,718 6,883 Pct. of Occupied Units 36.3% 35.8% Vacant Units 9,394 11,587 12,453 12,181 Vacancy Rate 37% 40% 41% 39% Seasonal Use Units* 6,739 8,297 9,003 9,731 Pct. of Total 27% 29% 30% 31% Note: All data are as of July 1 for all years. * Estimate prepared for this study. 10/16/2012 Update to the Eagle County Housing Needs Assessment, June 2012 Venturoni Surveys & Research, Inc.; Economic Council of Eagle County Page 34 APPENDIX P-4: Households by Type, Eagle County and Colorado, 2000 and 2010 Family households in Eagle County comprised 60% and 62% (note the small increase) of total households in 2000 and 2010, respectively. Statewide, 65% of households were family households in 2000, and 64% in 2010. The percentage of non-family households in Eagle County is slightly higher than the statewide average, but that difference has decreased over the ten-year period. Eagle County 2000 2010 Household Type Number Number Total Households 15,148 100% 19,236 100% Family Households 9,020 60% 11,991 62% With own children under 18 4,947 33% 6,357 33% Husband & wife 4,025 27% 5,090 26% Female Householder 612 4% 841 4% Nonfamily Households 6,128 40% 7,245 38% Householder living alone 3,168 21% 4,269 22% Householder alone 65+ 287 2% 660 3% Colorado 2000 2010 (numbers in thousands) Household Type Number Number Total Households 1,658 100% 1,973 100% Family Households 1,084 65% 1,262 64% With own children under 18 544 33% 590 30% Husband & wife 405 24% 423 21% Female Householder 102 6% 118 6% Nonfamily Households 574 35% 711 36% Householder living alone 436 26% 551 28% Householder alone 65+ 116 7% 154 8% 10/16/2012 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: October 16, 2012 ITEM/TOPIC: Adjournment (9:20 p.m.) 10/16/2012