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HomeMy WebLinkAbout2013-01-08 Agenda and Support Documentation Town Council Special SessionVAIL TOWN COUNCIL SPECIAL MEETING AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 10:00 A.M., JANUARY 8, 2013 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. Public comments on work session item may be solicited by the Town Council 1. ITEM/TOPIC: TOWN COUNCIL MINI-RETREAT AT THE GRAND VIEW (SEPARATE MEETING) Review of Council Work Program How are we doing; how did we do? Council lunch will be served during the meeting. PRESENTER(S): Rick Smith, Facilitator and Town Council 2. ITEM/TOPIC: Council Goals, Revisions and Changes and 2013 Funding Policy Discussion (120 minutes) PRESENTER(S): Town Council ACTION REQUESTED OF COUNCIL: Council discussion BACKGROUND: Council has identified these two items as topics for discussion. As requested, staff is providing the attached background information. 3. ITEM/TOPIC: Adjournment (2:00 p.m.) 1/8/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 8, 2013 ITEM/TOPIC: TOWN COUNCIL MINI-RETREAT AT THE GRAND VIEW (SEPARATE MEETING) Review of Council Work Program How are we doing; how did we do? Council lunch will be served during the meeting. PRESENTER(S): Rick Smith, Facilitator and Town Council 1/8/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 8, 2013 ITEM/TOPIC: Council Goals, Revisions and Changes and 2013 Funding Policy Discussion PRESENTER(S): Town Council ACTION REQUESTED OF COUNCIL: Council discussion BACKGROUND: Council has identified these two items as topics for discussion. As requested, staff is providing the attached background information. ATTACHMENTS: 2012-2013 Strategic Work Plan, updated for 010813 meeting Five Year General Fund Projection Council Contributions Policy Toursim Spending History ROI Memo CSE 2013 Budget Proposal 1/8/2013 STRATEGIC PLAN 2012 – 2022 WORK PLAN 2012-2013 Presented January 8, 2013 Revised July 17, 2012 and January 8, 2013 Vision To be the Premier International Mountain Resort Community! Our Mission Grow a vibrant, diverse economy and community, providing our citizens and guests with exceptional services and an abundance of recreational, cultural and educational opportunities. Our Values Respect, Trust, Integrity, Innovation, Collaboration, Environmental Stewardship. Our Commitment To provide vision, leadership, efficiency, transparency, accountability and fiscal responsibility. Note: Changes made by Council during their 2012 retreat are highlighted in italics. NOTE: CHANGES MADE BY STAFF AS OF JANUARY 8, 2013 IN RED. Key Goals • Improve Economic Vitality • Grow a Balanced Community • Improve the Quality of the Experience • Develop Future Leadership Goal: Improve Economic Vitality Improve the economic health of Vail, while being fiscally responsible. Focus on health and well being as the third component of a vital economy. Increase international tourism. 2 - 1 - 1 1/8/2013 2012 – 2013 Action Steps – Improve Economic Vitality • Embrace an international focus in our destination strategy including international marketing collaboration between Vail Local Marketing District, Vail Mountain Marketing and Colorado State Office of Economic Development and International Trade as well as events that attract international audiences through the Commission on Special Events, Vail Local Marketing District and Vail Town Council. Project Leader: Kelli McDonald Key Milestones: Q1 - 4 2012 Mexico and South American media and influencer visits, familiarization trips and marketing materials. ONGOING. 2012: 25+ trips 2013: 30+ trips Q1- 2 2012 AIPP and the Mexican Consulate bring art exhibits from Mexico to Vail; exhibit at the Sebastian starts March 16. Jesus Morales reception June 30, 2012. Q2 - 4 2012 Have a seat at the table for the Regional Partnership Strategy Development from the Colorado State Office of Economic Development and International Trade. Meetings held in July and October, 2012. Q1& 4 2012 Provide funding for events to appeal to international audiences. Complete • Participate in development of an international terminal at Eagle Airport. Project Leader: Margaret Rogers, Council Representative Key Milestones: Q1 - 4 2012 Have a seat at the table for the Eagle Airport Master Planning process; collaborate with Eagle County Commissioners and the Economic Council of Eagle County on this initiative. Master Plan input session July 2, 2012. Follow up meetings in October and December 2012 Note: May require additional resources. • Utilize Vail Mountain Marketing’s database on international guests through agreement with Vail Local Marketing District to message to those guests through email 6 times per year to drive visitation. Additional efforts will occur through public relations articles and stories; print advertising and a dedicated web site. 2 - 1 - 2 1/8/2013 Project Leader: Kelli McDonald Key Milestones: Q2 2012 First flight of email messaging, print ads and public relations. Complete Q3 2012 Second flight of email messaging, print ads and public relations. Complete • Develop an economic diversity strategy to include health and well-being. Project Leader: Kelli McDonald Key Milestones: Q1 – 4 2012 VLMD adopts health and well-being as a strategic pillar – ONGOING. Q1 – 4 2012 Recruiting efforts to bring more medical meetings – ONGOING. 2012 Actuals: 2,500+ room nights – 27% of overall room nights Q 4 2012 VEAC roundtable discussion on topic. First meeting November 2012. Follow up meeting scheduled January 2013. • Develop an economic development strategy to encourage small businesses to remain and to locate in Vail. Project Leader: Kelli McDonald and Community Development Key Milestones: Q2 – 3 2012 VEAC roundtable discussion on topic (Kelli) Meeting held October 2012. Follow up meeting scheduled January 2013. Q2 – 3 2012 Collaboration with the Economic Council of Eagle County, NWCCOG Economic Development District and Colorado State Office of Economic Development and International Trade. (Kelli) Meetings held July, October and December 2012 with all entities. Q2 – 3 2012 Determine current commercial square footage, vacancy rate, assess zoning and regulations to ensure we’re getting what we want and assess if and how we want to grow. Update Land Use Plan if necessary. (Community Development) • Grow quality group business (increase groups that support local businesses) through continued efforts of VLMD and Vail Valley Partnership to recruit groups to host their events, conferences and tournaments in Vail. 2 - 1 - 3 1/8/2013 Project Leader: Kelli McDonald Key Milestones: Q1 - 4 2012 Measure results in terms of number of groups as well as room nights and dollars in contracted revenue. 2011: 9,200 room nights; $1,652,000 lodging revenue 2012 projected: 9,400 room nights; $1,950,000 lodging revenue Actuals: 11,000 room nights; $2,500,000 lodging revenue 2013 projected: 9,500 room nights; $2,050,000 lodging revenue Economic Development Manager and Vail Valley Partnership will work toward increasing room nights for 2013 above this projected level. Ongoing • Be proactive in securing event partnerships and ensure we receive appropriate recognition for our support. Project Leader: Kelli McDonald Key Milestones: Q1 2012 Recruit new events and event promoters in 2012 – Complete Q1 2012 Town Manager sends letter to USA Pro Cycling Challenge requesting a meeting with Shawn Hunter in an attempt to bring the event back to Vail – Complete. Q4 2012 Town of Vail and VVF submit bid for a stage of USA Pro Cycling Challenge – Decision December 2012 to bring Time Trial Stage back to Vail in August 2013. Q2 – 4 2012 Meetings scheduled with identified local and regional entities who could be partners in the effort to recruit world-class events to Vail. Secured four new events for 2012 from this effort. Contracted with MKT Vail to lead this effort in Q3 2012. Ongoing efforts for Q1 – 4 2013 led by MKT Vail, CSE and VLMDAC. Q2 – 4 2012 Ensure that recognition of Vail is increased for support of 2015 World Championships – Ongoing. • Improve the regulatory environment for doing business in Vail and consider incentives that might promote short-term redevelopment to bring in new business (e.g., periodically review development approaches with policy objectives to ensure consistency with redevelopment strategy) including sign regulations, displays, design review process, fire code inspections and e-commerce for building department payments. Project Leader: George Ruther 2 - 1 - 4 1/8/2013 Key milestones: Q2 2012 Convene work session with Council to discuss redevelopment incentives and policy objectives options Q2 2012 Review sign regulations, outdoor display policies and development review processes and convene joint worksession meeting with Council, PEC and DRB Streamlining the development review process currently before the PEC for recommendation. Future town council worksession meetings required. Q3 2012 VEAC roundtable discussion on existing regulations Meeting held September 2012. Follow up meeting January 2013. Q4 2012 Review and adoption of 2012 International Building Code (IBC) Review process currently underway. Ordinance to Town Council 1st meeting in October. • Improve the regulatory environment for doing business in Vail for event producers including special event permitting process, vendor permits and liquor permits. Project Leader: Pam Brandmeyer and Kelli McDonald Key milestones: Q1 - 4 2012 Formation of the Event Review Committee (ERC), with representatives from each town department, has provided seamless implementation of challenging special events, e.g., Pro Cycling Challenge, Divas, Teva Summer and Winter Games, etc., as well as setting the stage for upcoming major 2012 events, e.g., Gran Fondo, Tour of Vail, etc. In 2011, ERC processed 90 special events licenses. Ongoing (Pam) Q2 2012 CSE roundtable discussion with event promoters to discuss existing regulations and policies (Kelli) Meeting held in May 2012. Resulting action items: development of streamlined online permits and calendar which will be live in Q1 2013. Q3 2012 Schedule work session discussion with Council (Kelli and Pam) Meeting held September 4, 2012 • Improve the regulatory environment for doing business in Vail for new and existing businesses. Project Leader: George Ruther, Kelli McDonald Key Milestones: Q3 2012 VEAC roundtable discussion on existing regulations 2 - 1 - 5 1/8/2013 Meeting held for September 2012. Follow up meeting in January 2013. Q4 2012 Identify options for simplifying workflow, map the existing process to identify redundancies and inefficiencies, and develop strategic plan for implementation Q3 2012 Schedule work session discussion with Council to discuss policy direction and establish a schedule for adopting and implementing amendments. • Redevelop the municipal site including the medical office building which will improve economic vitality by expanding the footprint of the clinic and by redeveloping TOV assets, which may include the Vail Village Inn Phase 5 commercial space, the Main Vail fire station, etc., to house staff temporarily in these buildings, then creating additional office space once the muni building is complete. Project Leader: George Ruther Key Milestones: Q1 2012 Sign Memorandum of Understanding – Complete. Q1 2012 Award TOV contracts for architect and project management – Complete. Q3 2012 Complete entitlement process. Currently underway. Q4 2012 Obtain final CDOT approvals. Regular meetings scheduled; IGA required. Q2 2013 Relocate TOV offices. Q2 2013 Break ground. Q1 2015 Complete project. Numerous critical path milestones already met. Schematic design sign off next major milestone. • Accelerate implementation of a financial system to coincide with the demolition of the existing municipal building which houses the system hardware. The timing of this project is tied to the ability to exit the muni building. The project also supports economic development through improved ability to provide information and supports an improved customer service through e-commerce. Project Leaders: Kathleen Halloran and Mike Richards Key Milestones: Q1 2012 Evaluate systems. Complete 2 - 1 - 6 1/8/2013 Q2 2012 Award contract and begin phased implementation. Contract awarded to New World Systems for Financial and Human Resources applications and EMGOV for Sales Tax; Timekeeping to be awarded later Q1 2013 Complete implementation of all critical modules prior to relocation of TOV offices. Sales tax module went live for processing 12/12/12; remainder of finance and human resources applications on track for implementation 7/1/2013. • Complete “Conference Center Funds” projects: the clubhouse at Vail golf and Nordic center; Ford Park athletic fields; and Ford amphitheater improvements. These projects are designed to increase our ability to add room nights such as the event space at the golf clubhouse and the athletic fields as well as provide a better overall experience by upping the bar with regards to the condition of all facilities. Project Leader: Greg Hall, Todd Oppenheimer and team e.g. VVF, VRD Key Milestones: Q4 2012 Begin construction of Ford Park athletic fields. Q1 2013 Begin construction of clubhouse. Earliest construction would be scheduled fall 2013 pending litigation Q3 2012 Begin construction of Ford amphitheater improvements. • Program and manage the new Lionshead Welcome Center community space, The Grand View. Project Leader: Pam Brandmeyer Key Milestones: Q1 2012 Use RFP process to select individual or group to program and manage the facility – Complete. Q1 2012 Sign management contract; determine pricing; operational guidelines and policy including free and discounted events. Q2 2012 Begin having paid events. Q2 2013 Complete one-year review and make adjustments if necessary. • Partner with Vail Resorts to provide a 50th anniversary celebration. Project Leaders: Kelli McDonald and Suzanne Silverthorn Key Milestones: Q1 2012 Funding of $250,000 approved for 2012 – Complete. 2 - 1 - 7 1/8/2013 Q2 2012 Presentation to Town Council on timeline and activities. Meeting held July 17, 2012 Q3 2012 Launch of celebration with Pioneer Days. Complete Q4 2012 Anniversary celebration with Snow Daze, Holidaze, Film Premier and other activities. - Complete Q2 2013 April activities - Ongoing • Partner with the Vail Valley Foundation to present the 2015 championships and Nations Ski race in Vail. Project Leaders: Susie Tjossem, Stan Zemler and Dwight Henninger Key Milestones: Q2 2012 Host emergency preparedness exercises in coordination with Town’s exercise program that develop our awareness. A mass casualty exercise has been planned for October 18, 2012. Q1 2013 Finalize legacy actions and plans for the Town. Q4 2013 Activate coordinated plans during the December 7-8, 14-15, 2013 Test Events. Q1-4 2012-14 Active participation on the Organizing Committee. Ongoing Beyond 2013 – Improve Economic Vitality • Embrace an international focus in our destination strategy: to include United Kingdom, Australia and Asian markets. VEAC meeting with Vail Mountain marketing held September 2012. 2013 VLMD objectives address this effort. • Evaluate signage for an appropriate mix of languages. • Maintain/enhance international relationships. Vail Mountain and VLMD initiatives for 2013 • Cultivate international city relationships: Look to international partners for best practices and potential inroads to new markets regarding international resort tourism. • Develop and promote TOV endowment fund: Explore/establish additional ways for gifting to TOV programs and events through endowments, bequests, and other charitable gifting arrangements. Goal: Grow a Balanced Community Attract professionals and families back into the Vail community. 2012 – 2013 Action Steps – Grow a Balanced Community • Assess current demographic mix vs. desired demographic mix using most current census and Eagle County documents. 2 - 1 - 8 1/8/2013 Project Leader: Community Development Key Milestones: Q3 2012 Complete assessment Assessment has been completed. Awaiting worksession discussion with the town council. • Explore the future of Red Sandstone Elementary School (RSES). Project Leader: Town Council and Town Manager Key Milestones: Q1 2012 Town Council and staff worked with the Eagle County School Board to keep RSES open and operating. - COMPLETE Q3 2012 Work session to understand current policies of school board and develop Council objectives for RSES, e.g., which grades may be best served Q4 2012 Schedule meeting with school district to map out future of RSES • Assure affordable work force housing remains at Timber Ridge Project Leaders: TRAHC Board Key Milestones: Q2 2012 Resolve non-compliance issues on financing with US Bank. Complete – Letter of Credit renewed for one year with terms established for second one-year renewal Q2 2012 Prepare five-year operating plan and revenue strategy. Complete Q2 2012 Develop a revised capital improvement plan. Complete Q4 2012 Complete first year capital improvements per plan. Complete – improvements include roof replacements, deck repairs, fire alarm cable, upgrades to 20 units. Q4 2012 Developed refinancing plan and obtained budget approval from Town Council; instructed trustee to notify bondholders of early February redemption. Q1 2013 Complete refinancing with $8 million cash payment and $8 million loan from TOV. • Complete comprehensive renovation of Vail Public Library including new technology center for patrons and technological improvements to the community room. This will provide locals as well as guests with enhanced technology 2 - 1 - 9 1/8/2013 resources and will allow the library to increase usage of its community room and expand upon programming for all age groups. Project Leader: Lori A. Barnes and team Key Milestones: Q1 2012 Contract award for construction. Q4 2012 Project complete. Project substantially complete (punchlist items still underway and not yet signed off on ; finishing touches (signage, art, etc.) not yet in place). Grand re-opening hosted by the Friends of the Library scheduled for March 8, 2013. Beyond 2013 – Grow a Balanced Community • Explore amenities that will influence the desired demographic (identified in the above analysis) to live in Vail to potentially include a “gathering/community center” among other amenities. An October 2008 asset inventory study was completed by the Vail Local Marketing District Advisory Council and Town Council gave direction to update and expand the study, which was completed in May 2011. A copy of that study can be presented to Town Council for further review. Update the study to include 2012 construction projects. VLMD funded an update of the study which was presented at December 18, 2012 Council work session. This resulted in a robust online program that leads other resorts with cutting-edge technology, innovation and thoroughness of data. Updates will be conducted twice annually beginning in 2013. • Review Chamonix configuration to attract the desired demographic. • Explore adapting the buy-down/mortgage assistance program to achieve this goal. Goal: Improve the Quality of the Experience Improve the Vail experience for all guests and further set Vail apart from its competition. 2012 – 2013 Action Steps – Improve the Quality of the Experience • Integrate VLMDAC information with capital plan. Project Leaders: Kelli McDonald and Kathleen Halloran Key Milestones: Q1 2012 VLMDAC memo will be presented to Council March 20, 2012. COMPLETE 2 - 1 - 10 1/8/2013 Q3 - 4 2012 2013 budget discussions include consideration of VLMDAC input. COMPLETE • Partner with Vail Resorts on cutting-edge technology (e.g., way finding, wi-fi, social media, apps). Project Leaders: Suzanne Silverthorn, Greg Hall, Kelli McDonald, Ron Braden Key Milestones: Q2 2012 Formalize a structure for collaboration and set goals. Lionshead Welcome Center program design identified hardware/software collaboration with vendor previously vetted by Vail Resorts. A similar design study has been initiated for renovation of Vail Village Welcome Center. Q3 2012 Develop a list of shared actions. Partnerships to date include live Vail Mountain feed for touchscreen in Lionshead Welcome Center spring 2012, plus use of Vail Resorts video feeds on media wall; and introduction of Vail Hiking & Biking app in June 2012 initiated by Vail Local Marketing District. Q4 2012 Monitor real-time parking information on m.vail.com for accuracy. ONGOING • Focus on resort size and resort appropriate environmental programs. Project Leader: Kristen Bertuglia Vail Recycles! Vail Village and Lionshead Recycling Program Key Milestones: Q1 2012 Conduct waste study and survey to establish waste diversion baseline: Survey businesses as to current practices and attitudes, challenges, barriers with respect to waste diversion, how the Town can help. Establish waste diversion baseline by random selection sort sampling of business trash. Completed Q2 2012 Compile results, hold stakeholder meeting with waste haulers, businesses, and develop recommendations. Completed Q2 2012 Complete final report. Present results to Town Council, obtain direction as to appropriate recycling incentive program (e.g. ordinance updates, grants or incentives, additional services, etc.) Completed Q3 2012 Implement Vail Recycles! Program for Vail Village and Lionshead Vail Village Recycling Pilot Program ready for implementation. Presented to town council on July 17, 2012 Water Quality Public Education Program Key Milestones: 2 - 1 - 11 1/8/2013 Q1 2012 Interview Americorp Environmental Stewardship program candidates and select summer intern in order to assist in the development of a public education campaign that raises community awareness about the individual potential to positively impact water quality, including establishing current practices for private property pine beetle spraying. Summer Intern hired. Q2 2012 Summer intern kickoff meeting - Based on the Boulder Keep It Clean Program, intern will develop door hangers and educational material for East Vail residents. Target 500 contacts made. Project Underway Q3 2012 Working with staff, intern will provide web content using graphic materials to educate the public on water quality issues. Organize Gore Creek walking tours at Bighorn Park. Presentations/demonstrations will provide a hands-on learning experience for residents and guests: ecosystem ecology, wildlife and aquatic insects, proper riparian area buffers, maintenance, lawn care, etc. July Working with staff, intern will help organize a Gore Creek stream bank restoration project with resident volunteers to prevent erosion impairment in previously identified target areas. Gore Creek Aquatic Life Public Education Program ongoing. First presentation was on July 11th in East Vail. Sustainable Building Initiative (SBI) - Currently underway, the objective of the SBI is to develop and implement a green building points system, incentivize sustainable building practices through carrot rather than stick approach, education and outreach. Ensure this initiative improves the ability for doing business in Vail. Ongoing Key Milestones: Q1 2012 Conduct 3 SBI Committee meetings to determine point items in categories not yet addressed (energy, materials and reuse, quality control, and innovation). Q2 2012 Present each category to the Planning and Environmental Commission (PEC). Q2 2012 SBI meeting to discuss incentives. Final revisions and public comment period. Final draft presented to PEC. Q3 2012 Final draft presented to Town Council. Test drive SBI in-house; work with select project to ensure smooth implementation. Q4 2012 First and second readings of ordinance to adopt SBI. (Nov-Dec, along with 2012 building code adoption hearing). Begin snowmelt offset program discussion, solicit for addition SBI Committee members. 2 - 1 - 12 1/8/2013 Organize public presentation of existing snowmelt offset programs at Donovan Pavilion - CORE and ECOBuild, Telluride. Present snowmelt offset program discussion, decide if Vail will move forward in pursuing offset program for the Town • Review and enhance our “connectivity” plan including a comprehensive signing and wayfinding program. Project Leaders: Greg Hall, Suzanne Silverthorn Key Milestones: Q1 2012 Town Council Approval of Wayfinding Principles. Complete Q2 2012 Town Council review of Wayfinding program regarding I-70 and Frontage Roads. Complete Q3 2012 Program design and approval. I-70 and Frontage Road package sent to CDOT and comments received, working through the design issues. Q1 2013 Resubmit I-70 and Frontage Road Sign package to CDOT for approval Q12013 Continue with Advisory Committee on design of signs for parking structure and pedestrian villages Q2-Q4 2013 Begin implementation of first phases of wayfinding program Q4 2014 A three year phased Installation with final completion before - 2015 World Alpine Championships. • Review and enhance our “connectivity” plan with a focus on hiking, walking, wandering and lingering. Project Leaders: Public Works Project Staff Key Milestones: Q3 2012 Work with CDOT on the overlay of the Vail Pass recreation trail. Completed Q3 2012 Completion of the bike lanes on the frontage road to East Vail. Q3 2012 VLMD funded and produced Hiking Map and Hiking & Biking App. Complete Q4 2012 Complete Lionshead streetscape projects - East Lionshead Circle and Concert Hall Plaza. Completed Q4 2012 Include public restrooms in a remodel of Main Vail Fire House. Underway Q4 2012 Reconstruct the Matterhorn Bridge with sidewalks. Q2 2013 Sun Dial Plaza. Design underway Q2 2013 Identify key missing links in “connections” determine obstacles and costs to complete the links and prioritize the connections for 2 - 1 - 13 1/8/2013 implementation, including trailheads. Funded additional bike lanes on Frontage Roads for 2013 Q4 2013 Rebrand the Village information center to a Welcome Center similar to Lionshead. Provide public restrooms and an upgrade in keeping with Vail’s renaissance. Initial studies underway, to be presented to Town Council Q1 2013 • Improve the quality and convenience of parking and transportation. Project Leaders: Greg Hall and Mike Rose Key Milestones: Q2 2012 Council work session to: provide background; identify steps already taken; and determine policy. Discussed at the April 17 meeting and will return in Q3 2012. Completed August 21, 2012 Q2 2012 Consider engaging a consultant to assist with finalization of the strategic parking plan, including system efficiencies. Reviewed at 1the April meeting, were directed to look at only system efficiencies, most which will be discussed in conjunction with the equipment replacement scheduled for 2014. Consultant would be on board in 2013. Q2 2012 Begin a three year program to meet the CDOT requirements to ensure use of the frontage roads for various parking as previously directed by the Town Council. First Phase Completed letter to Vail Resorts on funding second phase Q1 2013, design on second phase underway Q3 2012 Continue to refine and enhance the summer special event express bus. Q3 2013 Review parking operations and equipment for implementation of new system and processes. • Complete park and recreation projects which enhance the experience. Project Leaders: Public Works Project Staff Q2 2012 Complete the Red Sandstone Park. Q2 2012 Begin the work to allow the completion of the Bald Mountain Neighborhood Berm. Utility work completed. • Finish installation and activate improved guest service programming in Lionshead Welcome Center (virtual concierge, media wall, events info). Project Leaders: Tom Kassmel, Greg Hall, Ron Braden, Suzanne Silverthorn Key Milestones: 2 - 1 - 14 1/8/2013 Q1 2012 Technology installation – Complete Q2 2012 Visitor Center Staff Relocation – Complete May 25 Q2 2012 Grand Opening – Complete May 31 Q4 2012 Demolition of Lionshead Visitor Center/Frontage Road - Complete • Identify management structure for enhanced guest services programming to Include operation of Vail Village/Lionshead Welcome Centers and community host program. Project Leaders: Suzanne Silverthorn, John Power Key Milestones: Q2 2012 Identify Council policies and programming – Council set goal of “5- star” service delivery levels following discussion on June 19. Q2 2012 Issue RFP – RFP process has been delayed one year. Instead, a new contract with Vail Info Inc. was negotiated for Oct. 1, 2012 to Aug. 31, 2013 which sets clear expectations for increased service delivery. RFP for 5-star contract services will be issued in spring 2013 for Sept. 1, 2013 start. Q3 2012 Selection. – RFP process delayed one year. Selection to occur Q3 2013. Q4 2012 Implementation – Implementation delayed one year to Sept. 1, 2013. • Develop an enhanced cellular (4G) and Wi-Fi network. Project Leaders: Ron Braden Key Milestones: Q3 2012 Contract Negotiations / Approval. Complete - Approved by council in August of 2012. Q4 2012 Carrier Commitment. Complete - Carrier commitment in place December of 2012. Q3 2012 CenturyLink exit agreement. Complete - Network transitioned in December of 2012. Q4 2012 Cell tower (macro) site tower build at Public Works. Approvals in place, equipment ordered, waiting on utility build. Q4 2012 Cellular build (Micro DAS) in Village Transportation Center. Complete - Waiting on frequency assignments from carriers. Q4 2012 Temporary cell site install at Lionshead Trans Center. Complete. Q2 2013 Fiber Resource Allocation. Design plans initiated for spring 2013 build out. 2 - 1 - 15 1/8/2013 Q2 2013 Begin Build Out. Q3 – 4 2013 Launch system operations. • Gore Creek Environmental Programs Project Leader: Bill Carlson and Kristin Bertuglia Key Milestones: Q1 2012 Continue to support stream tract enforcements to address remaining properties with encroachments. Work with the Eagle River Water and Sanitation District and the Urban Runoff Group to complete the Water Quality Improvement Plan (WQIP) for Gore Creek and the Eagle River. Q2 2012 Ensure that all Town outfalls and sediment catch basins are maintained. Identify Best Management Practices (BMPs) projects that have an immediate effect on Gore Creek Water quality (i.e., additional catch basins/filters, stream bank restoration and stabilization projects, etc.) Q3 2012 Install identified BMPs, coordinate stream bank restoration projects. Present WQIP to Town Council. Q4 2012 Stream Bank restoration projects installed – willow plantings. Beyond 2013: Enhance the Experience • Begin long-range planning to reduce the impact of I-70. Note: The intent was not beginning near-term action, but more to keep this important subject on the radar screen. Goal: Develop Future Leadership Look toward the next generation of community leaders. 2012 – 2013 Action Steps – Develop Future Leadership • Schedule a Town Council work session to assess Vail’s current leadership and identify a desired vision for the future including benchmarks, where possible. Project Leader: Stan Zemler Key Milestones: Q1 2013 • Sponsor series of focus group meetings with target demographic segments, including second homeowners, to identify challenges, opportunities and suggestions to elevate civic leadership. Explore opportunities to host “lunch and 2 - 1 - 16 1/8/2013 learn” sessions with key leaders in the community as a way to continually improve TOV organizational leadership. Council may explore these topics at the January 8, 2013 retreat. Project Leader: Suzanne Silverthorn Key Milestones: Q3 2012 • More aggressively market board openings through advertisement. Project Leader: Suzanne Silverthorn Key Milestones: Q2 2012 – Board recruitment template from Colorado Municipal League print campaign was used for series of Vail Daily ads in late April and May for openings on the Vail Local Housing Authority (2 applicants); Commission on Special Events (4 applicants); Vail Local Licensing Authority, (3 applicants). • Develop recommendations on model/approaches that will result in developing future leaders in the TOV considering: John Horn-Kates Vail Leadership Institute Model; Boulder Leadership Model; Leadership Forums by Vail Homeowners Association and Vail Symposium; engagement ideas; orientation/education/outreach; and Vail 20/20. Project Leader: Mark Miller, Suzanne Silverthorn Key Milestones: Q4 2012 Evaluate existing leadership programs and best practices with presentation of research summary this fall. Awaiting Town Council consideration of proposal from Vail Leadership Institute. Other Initiatives These are projects already underway that may not fit precisely into Council’s four key goals. 2012 – 2013 Action Steps – Other Initiatives • Budget/Financial – Continue to provide a high level of services in a fiscally responsible manner. Project Leaders: Directors and all departments Key Milestones: 2 - 1 - 17 1/8/2013 Q2 2012 2012 annual audit presented to Council Complete – Clean opinion with no management letter comments Q4 2012 2013 annual budget adopted by Council Complete • Laserfiche – Finish implementation of document imaging program and scanning of historical documents throughout the organization. Project Leader: Ron Braden Key Milestones: Q4 2012 Provide customer access to public documents. Waiting for REO software update scheduled for Q1 of 2013. Q1 2013 Complete scanning of permanent files in Community Development and Administration to avoid temporary relocation. Complete • 2012 Community Survey Project Leader: Suzanne Silverthorn Key Milestones: Q1 2012 Town Council approval of survey questions - Complete Q2 2012 Survey in the field - Complete Q3 2012 Presentation of results – Complete June 5, 2012 2 - 1 - 18 1/8/2013 2011201220132014201520162017 ActualAmendedProposedProjectionProjectionProjectionProjection Revenue 2% over forecast3%3%3%3% Local Taxes:19,581,415$ 18,900,000 20,100,000 $ 20,700,000$ 21,320,000$ 21,960,000$ 22,620,000$ 2013 2% increase from 2012 forecast of $19.7M; then 3% per year Sales Tax Split b/t Gen'l Fund & Capital Fund 54/46 61/3962/3862/3862/3862/3862/38 Sales Tax10,859,000$ 11,530,000 12,462,000 12,834,000 13,218,000 13,615,000 14,024,000 Property and Ownership5,031,770 4,232,000 4,217,000 4,577,000 4,577,000 4,890,000 4,890,000 2013 flat with 2012; Re-assessment will impact collections in 2014 Ski Lift Tax3,529,125 3,492,000 3,492,000 3,596,756 3,704,618 3,815,783 3,903,282 2013 flat with 2012 budget; 3% thereafter (5-yr avg is 4% per year) Franchise Fees, Penalties, and Other Taxes1,073,138 1,037,753 1,074,442 1,108,722 1,140,790 1,176,506 1,210,598 Based on historical trends Licenses & Permits1,136,966 1,155,000 1,280,580 1,306,209 1,332,362 1,359,040 1,386,208 No major redevelopment projected; Does not include MOB/Muni project Intergovernmental Revenue2,066,191 1,911,250 1,861,914 1,843,617 1,863,472 1,883,960 1,905,080 Incl. COPS grant thru '12 and SAFER grant thru '13; remainder based on 5-yr avg Transportation Centers4,023,940 3,839,000 3,851,000 3,958,160 3,958,400 4,076,522 4,076,522 2013 flat with 2012 amended; 3% increase in 2014 and 2016 Charges for Services 962,342 799,596 759,347 728,360 736,716 741,775 746,935 Mainly based on RETT mgmt fee; VLMD fee and VRA fee Fines & Forfeitures265,575 325,000 270,887 276,274 281,838 287,477 293,228 2013 updated based on 5-year average; then 2% per year Earnings on Investments188,848 116,900 175,000 199,400 193,200 186,400 186,400 Approx. 0.5% of fund balance Rental Revenue895,872 929,816 905,605 856,940 880,787 882,648 912,302 Miscellaneous and Project Reimbursements 477,845 302,000 175,000 207,000 207,000 207,000 207,000 Based on 5-year average Total Revenue30,510,613 29,670,315 30,524,775 31,492,438 32,094,183 33,122,111 33,741,555 % increase vs. prior year -1.7%2.9%3.2%1.9%3.2%1.9% ExpendituresSalaries 13,122,291 13,726,371 13,963,339 14,382,239 14,813,706 15,258,118 15,715,861 4% merit in 2013; 3% per year thereafter Benefits 4,483,006 4,600,396 4,751,741 4,894,293 5,041,122 5,192,356 5,348,126 40.7% full time benefits in 2013 (vs 40.8% actual rate for 2011); 3% per year increase after***Does not include potential impact from Healthcare Reform Subtotal Compensation and Benefits17,605,297 18,326,767 18,715,080 19,276,532 19,854,828 20,450,473 21,063,987 -0.3%2.1%3.0%3.0%3.0%3.0% Contributions and Special Events1,278,453 1,533,218 1,573,648 1,405,100 1,432,900 1,461,400 1,489,900 2013 removed the 1-time 2012 contributions (Vail 50th for museum, Vail DVD, Gran Fondo); Per Council one-time increases: $160K to CSE, $20K RSES, $20K Vail Jazz All Other Operating Expenses5,524,989 6,536,076 6,818,291 6,950,000 7,093,000 7,235,000 7,379,000 Depts held flat with exeptions: Add'l IT services; new facilities mtce & mgmt; 2014 and beyond does not reflect operating impact of new municipal building Heavy Equipment Operating Charges2,196,237 2,278,304 2,282,796 2,328,452 2,375,021 2,422,521 2,470,972 2013 slight increase based on higher fuel prices; 2% per year thereafter Heavy Equipment Replacement Charges 537,417 547,008560,284571,490582,919594,578606,469 Dispatch Services537,827 575,706 569,193 580,577 592,188 604,032 616,113 2013 increase based on usage Total Expenditures27,680,220 29,797,079 30,519,292 31,112,151 31,930,857 32,768,005 33,626,441 % increase vs. prior year 1.8%2.4%1.9%2.6%2.6%2.6% Revenue Over (Under) Expenditures2,830,393 (126,764) 5,483 380,287 163,326 354,106 115,114 2015 World Alpine Ski Championships (250,000) (250,000) (250,000) (250,000) (250,000) - - Pro-cycling event (75,000) - (75,000) - - 2015 Nation's Event - (375,000) (375,000) (375,000) (375,000) - - Burton US Open - - (400,000) - - - - *Note* Burton plans to ask for five years of funding Vail's 50th Anniversary - (350,000) - - - - - Timber Ridge Investment - - (8,000,000) - - - - Investment in Timber Ridge deed restrictions Transfer to Capital Projects Fund (1,845,800) (50,000) - - - - - Revenue Net of Transfers & New Programs659,593 (1,151,764) (9,094,517) (244,713) (461,674) 354,106 115,114 Beginning Fund Balance22,886,692 23,546,285 22,394,521 13,300,004 13,055,291 12,593,617 12,947,723 Ending Fund Balance 23,546,285 $ 22,394,521$ 13,300,004$ 13,055,291$ 12,593,617$ 12,947,723$ 13,062,837$ As % of Annual Revenue77%75%44%41%39%39%39%TOWN OF VAIL 2013 BUDGET SUMMARY OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCEGENERAL FUND5 2 - 2 - 1 1/8/2013 1 Council Contributions The below is the published criteria for Council contribution requests, specifically item 1.C. In addition, staff has traditionally followed a policy of not recommending funding for organizations’ operating expenses, or funding of other taxing entities (for example, Health and Human Services programs which are funded by Eagle County’s tax collections). Are these policies that staff should incorporate into this document? Should those policies change? Two years ago, staff included requirements for “Event Recap” for organizations receiving contributions for events for consistency with organizations receiving event funding from the Commission on Special Events. Currently, the events funded with Council contributions (such as Bravo! and Vail Valley Foundation events) are protected by a resolution passed by Council xx years ago which is why they remain identified as “iconic events” funded outside of the CSE. ____________________________________________________________________________________ CONTRIBUTION POLICY TOWN OF VAIL 1. All contribution requests received by the Town of Vail will be processed in the following manner: A. All requests must be submitted in writing using the town's application for funding. You may submit financial information (Balance Sheet and Statement of Sources and Uses) ONLY IF it does NOT exceed 2 pages in length. Please do not attach additional information. Incomplete applications and supplemental information will not be accepted. THE TOWN COUNCIL WILL ONLY BE GIVEN YOUR COMPLETED APPLICATION FORMS. NO SUPPLEMENTAL INFORMATION WILL BE GIVEN TO THE TOWN COUNCIL. B. All applications for funding in 2013 shall be received at the town by June 29, 2012 by 5:00 P.M. This includes 5 copies, as well as an electronic version (electronic version can be sent by email to sellis@vailgov.com). C. The Town Council will evaluate the various proposals based on their direct benefit to the entire community of Vail, fulfillment of the town’s mission, and how this contribution will affect our resort community’s future health. The Town Council’s mission statement reads: In order to be the premier mountain resort community, we’re committed to providing citizens and guests with a superior level of environmentally-sensitive services and an abundance of recreational, educational, and cultural opportunities. 2. Disclosures to all applicants: A. No money will be disbursed until March 1, 2013. 2 - 3 - 1 1/8/2013 2 B. Because of uncertainty of revenue estimates, please note the following possibilities: 1) Contribution funding may be reduced based on 2012 revenues. 2) The Town of Vail may choose to disburse funding in quarterly installments throughout 2013. C. Notification of awards will be sent after the Council approves the final budget currently scheduled for November, 2012. 3. All entities receiving public funding for events, including those which are culturally‐ designated, are required to present a final event recap to the Commission on Special  Events using the guidelines below as a template for the report.  (Note: This is a new requirement and does not apply to contractual agreements such as  Channel 5 or Vail Childcare.  If in doubt, please ask.)     Guidelines for Post‐event Recap for All Events Receiving Public Funding:  A post‐event recap is required from all events receiving Town of Vail funding or in‐kind  sponsorship. Please schedule a presentation to the Commission on Special Events within  60 days of the close of your event. This presentation should be accompanied by a  written, post‐event follow‐up document which shall include:    1. An overview outlining the event’s strengths and weaknesses: specifically, what went  well and what measures could be taken to improve the event.    2. An event budget showing actual profit and loss numbers and how the funding was  utilized.    3. A detailed overview of the marketing that was implemented to promote the event.    4. An explanation as to how participants and/or attendees were directed to book lodging.    5. Survey results (*see explanation below) including the following information, per the  CSE Criteria as described in the RFP:  a. Attendance numbers and demographic profile:  i. Estimated attendance. If your event is non‐ticketed, please describe what method  you used to estimate the numbers of attendees.   ii. What percentage of people came to Vail specifically for your event? What percentage  of people have attended the event in previous years?  iii. Where did attendees come from: local, regional, out of state, international?  iv. Average age and income bracket of attendees.  b. Estimated spending by event attendees:  i. Lodging  2 - 3 - 2 1/8/2013 3 1. What percent of attendees stayed in the Town of Vail?  2. Number of room nights generated?  3. Average amount spent on lodging per day?  ii. Dining  iii. Shopping  iv. Other Activities  c. Visitor Intent to Return and Satisfaction Ratings: Would you come back? Was if fun?  d. Estimated Return on Investment (ROI) to the Town of Vail: Specifically, how much  additional spending within the Town of Vail was generated by the event? What is  the ratio of increased revenue to the amount of funding received? How much  additional sales tax revenue generated by the event accrued to the Town of Vail?  (Town of Vail sales tax is 4%).    6. Potential for growth and the development of sponsorships and media exposure.    7. Did the event impact Vail’s “Sense of Community”?    8. In light of the Vail Town Council’s commitment to a sustainable environment, please  describe any and all measures that were taken to produce the event in as “green” and  environmentally friendly manner as possible.     Please submit your event re‐cap electronically to the Special Events Coordinator at  specialevents@vailgov.com  a minimum of 5 days prior to your presentation.  2 - 3 - 3 1/8/2013 Tourism Spending Council Contr: InfoIconicOther GFEvents Funded Year VLMDCSE OnlyBoothsEventsCouncil Contr With ReservesTotal 20051,510,288  564,013     170,675   177,096         285,197         2,707,269      20061,696,607  598,389     195,276   247,500         184,791         2,922,563      20071,860,862  744,016     198,703   258,250         196,897         3,258,728      20082,748,260  768,703     198,967   398,750         199,724         4,314,404      20092,164,454  841,810     198,515   294,125         225,709         3,724,613      20101,673,363  848,643     199,596   354,275         123,700         3,199,577      20111,918,977  855,666     202,151   364,275         187,000         325,000             3,853,069      2012 Amended2,341,225  917,800     224,133   345,600         279,200         975,000             5,082,958      2013 Budget2,571,725  1,021,800  258,714   336,600         203,000         1,100,000         5,491,839      2 - 4 - 1 1/8/2013 To: Vail Town Council From: Economic Development Office Date: January 8, 2013 Subject: ROI Discussion In the recent Town Council meeting, the subject of return on investment (ROI) was raised in the context of continued aggressive investment in special events funding and marketing and Town of Vail marketing overall. As a shared understanding amongst the Council is not yet achieved, to contribute to the discussion, this document provides a thorough examination of the subject of ROI. The content is sourced from numerous available lateral learnings from the many marketing enterprises available in Vail, as well as numerous other examples gleaned from professionals in and around Vail and their experience in other varied organizations. I. Direct/linear ROI The basic metric which measures the direct investment and the specific amount returned via the effect of this spend. This is the most linear measure of ROI. As Council is aware, the CSE engaged RRC Associates to undertake an Economic Impact study which sought to understand the relationship. Their data reveals, on this basis alone, a substantial ROI directly linked to the effect of special events. Measured on two levels; 1) total revenues generated by visitors who visited Vail specifically or in part because of a special event, and 2) tax revenues generated by the same visitors. This data reveals the following: Scenario 1 - Ratio of direct economic impact to event funding received: $92,463,049 - Event economic impact $1,058,506 - Event funding provided by CSE/VLMD/Council (of the events surveyed) $87.35 Payback ratio (incremental community revenue per dollar of event funding) $43.68 Payback ratio (incremental community revenue per dollar of event funding) Note: the $43.68 figure is derived by lowering the economic impact by half with an assumption that event attendance was half of that actually reported by producers – even in this conservative scenario the event ROI remains substantial 2 - 5 - 1 1/8/2013 Town of Vail Page 2 Scenario 2 - Ratio of direct sales tax impact to event funding received: $3,108,835 - Sales tax collections $1,058,506 - Event funding provided by CSE/VLMD/Council (of the events surveyed) $2.94Payback ratio (incremental TOV sales tax revenue per dollar of event funding) $1.47Payback ratio (incremental TOV sales tax revenue per dollar of event funding) Note: As above, we lowered the incremental revenues by half in the interest of conservatism – in this scenario the most basic ROI measure, the return is still close to +150%. In the eyes of most professional opinions, at its most basic core, stripped of any other assumptive return on investment possibilities, a +150% return not only pays for itself, but provides reasonable incremental return relative to comparable investments. We also believe that under the current CSE movement towards greater event effectiveness and more efficient spend, these basic ROI ratios are only likely to grow with or without further investment. II. Guest Satisfaction Increasingly, guest satisfaction and its associated metric, Net Promoter Score, are in use by most Fortune 500 companies as the essential measure of customer loyalty. We also know that word-of-mouth is amongst the most effective and efficient marketing devices in the marketing tool box of the 21st Century. We all know the adage that a satisfied guest tells 10 friends about their positive experience, and a dissatisfied guest tells 20 friends about their negative experience. The CSE believes that the current movement in Vail, shared by the VLMDAC, towards more aggressive, more resonant and ultimately more effective marketing of which special events are a substantive part of, has been one of the drivers behind the meteoric rise in NPS: Year NPS % Detractors 2007 62 7 2010 72 3 2012 82 - A 20 point rise in five years is almost unknown in the consumer durables category and other comparable businesses. At minimum it indicates a massive shift in perception which can only be caused by a similarly strong shift in experience. It’s also worth noting that great companies like Southwest Airlines or Apple, for instance, achieve 2 - 5 - 2 1/8/2013 Town of Vail Page 3 NPS scores in the area of 70%, with many ‘good’ companies like Nike and American Airlines commonly achieve NPS scores far lower. While there is no universal measure for the value of such perceptual change, (some brands value guest experience, some do not), one could look at it in the following manner: - in 2007 62 out of 100 guests were favorable towards Vail and would recommend us to family and friends. 7 out of 100 would negatively tell 20 people each. - By 2012, we’ve grown the population of positive respondents, or ‘active promoters’, by 30%. If you extrapolate that times our summer attendance of say 1,500,000 visitors, we’ve created 500,000 more active promoters who in turn have told 10 friends each. The cost of our having had to spend to reach and convince a similar audience would be exponential and frankly untenable, and this as just a side benefit of our marketing spend on special events. But you could estimate this cost at well in excess of $2,000,000, more or less our current VLMDAC generated media impact per annum. It is legitimate therefore to consider this ‘opportunity’ cost as part of our ROI. Add this to our most conservative ‘direct ROI’ detailed in section I and we are now approaching a 3.5 to 1 ROI. III. Leveraged Media/PR/Marketing Impact While we do not have precise data for this measure, based on a rudimentary formula this number represents media, PR and other marketing impact (word of mouth, lateral marketing, press, social media reach, et. Al.) which Vail would otherwise need to purchase in the open market in order to achieve similar impact. Equally, based on our current strategy, the CSE funded and enabled special events from the principal content for the VLMDAC’s efforts in paid and social media as well as PR efforts. At about 40 or so annual events, with an assumption based on the data we do have of say $40,000 leveraged average value of each event (an event like Bravo exceeds $100,000 in such value, a smaller event less so), this very conservatively generates another $1,600,000 in leveraged value we’d otherwise need to purchase. Add this to the calculations in sections I and II, and our overall ROI is now getting towards 5 to 1. IV. Brand Value A potentially richer category of ROI is the value of the Vail brand. Many top flight brands such as Apple and Nike do indeed value their brands and include this value on their balance sheets. It’s often referred to as ‘blue sky valuation’. 2 - 5 - 3 1/8/2013 Town of Vail Page 4 Potential suitors for such companies would need to account for these valuations in any acquisition scenario friendly or unfriendly. THE VLMDAC has now for several years been committed to detailed brand tracking and monitoring via Intercept studies, as well as prominent third party brand research. As validated by our Burke Research initiative conducted in 2011, and as reinforced by this past summer’s NPS score of 82, the Vail brand, in summer alone is now in the top two of summer destination resort brands. If one factors in Vail’s winter brand standing where it is a clear number one in North America, and additionally factor in the now successful initiative of our having integrated winter and summer brands together, one can only imagine the value of this result. It manifests itself in such practical benefits as consumers placing Vail high in its consideration set when setting out to choose a summer destination, in repeat visitation consideration, in word of mouth, and in frequency of trips. It also manifests itself in less linear decisions such as the Burton US open deciding to choose Vail after 30 years in its Vermont location, a decision which will likely drive $18 million plus in incremental economic impact. Add to this related such decisions, and it’s not difficult to imagine the power and value of brand. We’d not attempt to try and place a value on this impact without more science, but its many multiples of our annual spend, and growing as evidenced by the Burke research data conducted in Summer as well as Winter. V. Ongoing ROI Measurement Finally, all of these metrics are now systematically measured by all the key Town of Vail economic development entities including the VLMDAC and CSE, as well as for instance our front line Vail information services initiative which is both measured in its own right as well as directly impacting our rise in Net Promoter Score. Additionally, our own ROI tracking is now regularly integrated with Vail Mountain’s metrics and methodologies. We share Burke as a brand tracking method. The Vail Marketing Research team conducts our principal Intercept studies; Guest Satisfaction and NPS measures are conducted by precisely the same methodology thus rendering the data fully comparable and reliable. The CSE as reported in an earlier memo has introduced a level of ROI discipline comprehensively in its processes; from Mission Statement, to annual objective setting, to producer and event qualification, each incorporated into a very tightly aligned scorecard which is the primary arbiter of the event selection process. This new series of processes is also tightly joined to the VLMDAC objectives and strategies, which in turn cascade from both the Council’s objectives as well as those of Winter marketing. All of this provides an undercurrent of discipline and validity as it relates to current and future Town investment in all economic development aspects. It has the nature of a defacto singly coordinated marketing enterprise led by the office of Economic 2 - 5 - 4 1/8/2013 Town of Vail Page 5 Development, with shared partners, shared methods, vocabulary and ongoing activities. In the current absence of a single leadership organizational structure, we believe that this is an optimal organizational set up which safeguards and leverages every dime the Town invests; now and in any increased investment scenario - with ROI at the center of the overall enterprise. In conclusion, we’d ask the Council to consider these thought processes supporting its ROI discussions. We believe strongly that this thinking would hold up to examination, would be validated by more thorough research although that is not what we are recommending, and that any competitor or lateral industry would envy the position Vail now enjoys that results from what we consider to be a modest investment in special events and marketing. 2 - 5 - 5 1/8/2013 To: Vail Town Council From: Commission on Special Events Date: December 4, 2012 Subject: CSE – 2013 Event Strategic Plan Overview & Funding Request This provides a summary of CSE direction for the 2013 Event platform. Detailed within are a summary of CSE’s tightened strategic direction, a description of new tools developed and deployed in order to align the CSE’s duties more rigorously against its economic impact mandate, and a concise description of the funding allocation recommendation for 2013. Finally, within the context of the overall enterprise, a discussion of funding requests for growth initiatives we believe to be above and beyond the fundamental requirements of the CSE. I. 2013 – CSE Strategic Direction Enhanced marketing efforts have been amongst the drivers of recent summer season economic growth, culminating with achievement of record sales tax revenues during that time period. The CSE believes it has contributed to this resurgence by having undertaken a review of its fundamental mission for 2013 (and beyond). For the last several months the CSE has examined its core activities and in doing so has adopted a significantly improved set of operating guidelines with an objective of greater accountability, more rigor in why and how events are selected, and ultimately greater effectiveness. a. CSE objectives have been closely aligned with VLMDAC objectives, which in turn are well aligned with the Council’s own objectives. We feel this provides for a tight, efficient and synergistic alignment of the combined marketing efforts (see Exhibit A) b. A new CSE Mission Statement which is tightly developed against our new operating philosophy (see Exhibit B) c. With the insight that there are perhaps too many events, we’ve adopted a quality versus quantity criteria, reduced redundancy, and looked hard at the timing and seasonality of events to make the schedule more optimal d. We’ve dispassionately eliminated non-performers, rewarded strong performers, and given the Council’s request for greater proactivity invested in opportunities e. We identified a key insight, which is that the marketing of individual events is what drives an event’s success or lack thereof – to this end we’ve put a focus on marketing including development of a ‘marketing checklist’, greater involvement 2 - 6 - 1 1/8/2013 Town of Vail Page 2 in our producer’s marketing of their events, and investment in town staff resources in order to manage this intensive process (see Exhibit C) f. The ‘scorecard’, our basic tool used to determine the allocation matrix has been revamped to incorporate all of these new criteria – the result has been a somewhat different event line up for 2013, and one that we feel will be more effective (see Exhibit D) II. Event Effectiveness – Measurement Tools In line with the recent Vail marketing successes, VLMDAC, Vail Resorts Marketing, as well as the CSE have all invested in a disciplined suite of research tools to not only keep score, but to support on-going marketing and spending decision making. The fundamental on-going tools now consist of monthly (and bi-weekly in Winter) mTrip reports, Sales Tax data, the on-going Intercept studies providing both qualitative and quantitative data in individual events, last season’s Economic Impact Study, parking data, as well as keeping our finger on the pulse of the merchant/hotelier/restaurateur community. In addition, the ‘scorecard’ and its support tools such as the ‘marketing checklist’ are now structured to be more dynamically employed tools. Less obviously quantitative measures such as brand strength, marketing expertise, media leverage, and community integration are now all monitored, measured against newly established objectives. Related, although a robust study with valuable and fresh data, the Economic Impact Study was felt to fall short in the area of event attendance – a key variable as it relates to bottom line economic impact. This is because different event producers utilize different methodologies to report attendance, thus rendering the data not comparable, and in some cases not reliable. The CSE proposes for 2013 that we take over this function ourselves, giving us and therefore Town of Vail accountability for this key data. It will have the added benefit of allowing our producers to focus entirely on event development, marketing and execution, both operationally and financially. III. 2013 Event Funding Overview The 2013 event funding process was more structured, rigorous, and objective than perhaps any previous year’s process. Employing the new criteria, supported by the new tools, there was a spirit of greater sophistication and frankly greater passion for the process. Hard decisions were made. And more importantly, there was far greater proactivity guiding all decisions. It was not just about choosing one event or another. Some events were funded with conditions to improve marketing or not receive funding (e.g. Soul Festival). Some are earmarked for greater VLMDAC integration to pursue upside opportunity (e.g. Bravo). Others asked to align more closely with Vail brand (e.g. Farmer’s Market). Others asked to grow with incremental funding (e.g. Keen Kids 2 - 6 - 2 1/8/2013 Town of Vail Page 3 Adventure Race). Vail Restaurant Month was asked to reduce timing from a month to 10 days and be remodeled on the successful Denver Restaurant Week concept and thus renamed to Vail Restaurant Week. Group events like Lacrosse and Kick It 3x3 Soccer will be worked with to integrate into Vail Village and/or Lionshead to increase community vitality. This is a short list of such interjections. The 2013 Event Funding Matrix is attached detailing all decisions and allocations. Bottom line, the CSE believes all of this has added up to a more effective line up that will drive increased results. IV. 2013 – Incremental Funding Requests to Support Growth Initiatives The CSE believes that its allocated budget for 2013 is optimally deployed as outlined throughout this document. We are therefore requesting incremental funding support of $190,000. Above and beyond this fundamental scope are several key initiatives we strongly believe should be invested in by Council: a. Event Attendance Research - $50,000 As detailed above, event attendance data that is accurate, reliable and, comparable is essential to getting towards economic impact data that The Town Council can rely on. In a sense we feel this is the last piece of the puzzle. The CSE working with Staff would undertake a search process to find the most effective vendor, with a desire to implement immediately in 2013. This would be coupled with the same level of economic survey data provided in 2012, with the added aspect of verifiable event attendance. b. Potential New Memorial Day Event - $100,000 At Council’s request, the CSE is proactively developing an effective new event for the Memorial Day Weekend time period. We see numerous challenges in doing this, namely the weather challenge, the challenge of first time event, changing consumer and merchant behavior, etc. Towards this end we have proactively funded qualitative research to ensure we land on the best possible new event concept and to be able to give concrete and effective direction to potential event partners. Our feeling is this would be the minimum level of invest to jump start any new event. c. The Vail ‘Living Well Summit’ - $25,000 The CSE viewed this initiative as a strategic investment opportunity. One of the few and substantive new initiatives geared towards continuing investment in further developing the Health & Wellbeing strategy that Council has set as a key Town of Vail objective. As such, in its infancy it does not deliver well against the more immediate objectives of driving significant visitation, heads in beds, tax revenue and so on. But on the basis of its strategic value, value to the Vail Brand objectives, its good initial first year’s performance, and potential, we’d ask for Council funding to enable its 2 - 6 - 3 1/8/2013 Town of Vail Page 4 development. The CSE will continue to work with the producers in the framework newly established for all events; to lend marketing support, and other operational liaison. d. Additional Event Marketing Support - $15,000 (funding potential by the VLMDAC) The CSE in its 11-15 coordination meeting with the VLMDAC was fortuitously offered funding support to be able to increase the hours of our marketing coordinator contract for 2013. These additional hours are needed in order to support the increased level of marketing liaison with Event Producers. On the basis of the promise of far more effective CSE-VLMDAC integration in 2013 and beyond, the VLMDAC saw significant value in this opportunity. And we see this as another strong signal of forward progress in the overall coordinated marketing effort on behalf of The Town of Vail. 2 - 6 - 4 1/8/2013 2013 Allocations – The Starting Point 1 VLMDAC 2013 Objectives Continue the momentum and build on the powerful leadership position of the year-round Vail brand 1.Increase May – October Occupancy 2.Increase Sales & Lodging Tax Revenue 3.Increase Group Occupancy 4.Optimize Visitor Mix 5.Increase Net Promoter Score 6.Increase Vail Brand Awareness Town Council Economic Goal •Improve Economic Vitality •Embrace International focus in our destination strategy; flights, events, marketing •Improve the quality of group business •Be proactive in our event partnerships •Advance Well-being •Improve the quality of the resort experience and ensure we are on the cutting edge of technology Town of Vail | 11/14/2012 Exhibit A 2 - 6 - 5 1/8/2013 2 Town of Vail | 11/14/2012 CSE – Proposed 2013 Objectives 1. Align events with the Vail Brand 2. Drive Positive Economic Impact - occupancy - sales tax - group business 3. Generate Funding leverage 4. Attract destination guests who book overnight rooms; in-state and out of state 5. Achieve an optimal event calendar 6. Achieve a superior community and guest experience CSE – Current 2013 Objectives 1. Align with the Vail Brand 2. Positive Economic Impact - lodging - restaurants - retail - destination guest volume 3. Optimal Funding leverage opportunity 4. Event Producer quality/experience 5. Timing suitability 6. Contribute to sense of community 2013 Allocations – Aligned Objectives Exhibit A 2 - 6 - 6 1/8/2013 CSE Mission Statement – 2013 1 New Mission Statement The Vail Commission on Special Events is accountable to deliver an annual Special Events Plan which ensures world class events that are fully aligned with Vail’s brand. The CSE should effectively and efficiently allocate available budget behind this objective. The Events Plan will deliver measureable results in terms of specific goals: economic impact, optimization of the seasonal calendar, positive community experience and integration, as well as positive guest-centric results that lead to future loyalty. Town of Vail | 10/18/2012 Exhibit B 2 - 6 - 7 1/8/2013 EXHIBIT C Vail Commission on Special Events 2013 Events Plan - Marketing Checklist (Abbreviated) Key marketing ‘gates’: 1. CSE representative provides upstream brand briefing with producers and liaises back to CSE board to maximize leverage opportunities 2. Alignment and/or agreement on marketing objectives 3. Alignment on planned marketing budget 4. Creative strategy 5. Marketing strategies and top line plan 6. Community engagement plan and integration 7. Appropriate calendar communication and integration 8. Marketing assets 9. Public Relations integration 10. Customer service plans 11. Producer to provide marketing liaison representative for CSE/ VLMDAC contacts 12. Real time Exec Summary to board members 2 - 6 - 8 1/8/2013 EXHIBIT D COMMISSION ON SPECIAL EVENTS Event Recruitment Score Card – Revised 10/03/12 Criteria Rating Does The Event Have Potential To: Increase Room Nights 0-20 Increase Sales & Lodging Revenue 0-10 Drive Group Business 0-10 Brand Fit Is the event aligned with the Vail brand and 0-10 does it bring it to life experientially on its key dimensions: 1) Physical vitality 2) Cultural vitality 3) Emotional vitality (additional weight will potentially be given to those events that begin to articulate Vail's strategic objective of developing the notion of Health & Wellness) Timing How well does it help achieve an optimal 0-5 calendar of events against occupancy opportunity and Town of Vail available assets (human and capital) Demo Fit Does it help optimize visitor mix 0-5 - In-state over night guests - Destination visitors - International Performance How well will it perform financially - Revenue 0-10 - Leveraged media exposure 0-10 Producer Qualifications Expertise, local knowledge, ability to financially leverage 0-10 Marketing Strength How effectively will it be marketed 0-10 2 - 6 - 9 1/8/2013 TOV/CSE 2013 RFP's Received/revised 11/27/2012 11:27 AM CSE Funding Applications for 2013 Special Events Event:Producing Entity:2013 Dates: 2012 Funds Received 2013 Funds Requested: Grid Score (600 MAX)2013 Allocation Summer Mountain GamesVail Valley FoundationJun 6 - 9 $105,000$100,000 551$100,000 Snow DAZEHighlineDec 4 - 8$50,000$100,000527$50,000 Spring Back to Vail HighlineApr 8 - 14$35,000$100,000 523$37,500 Vail Lacrosse Shootout Colorado Lacrosse Promotions: Additional funds to promote international participation and event integration in Vail VillageJun 29 - Jul 7$10,000$20,000 499$13,000 Winter Mountain GamesVail Valley FoundationFeb 8 - 10 $70,000$70,000 495$50,000 Gourmet on GoreHighlineAug 30 - Sept 2$55,000$75,000 486$50,000 Kick-It 3v3 Soccer Team Championships International (TCI): Additional funds to promote international participation and event integration in Vail VillageAug 2 - 4$35,240$40,000 484$40,000 Keen Kids Adventure Race Vail Recreation District, Grand Traverse AdventuresAug 8 -11$5,000$40,000 468$25,000 Vail Restaurant WEEK I Openers:Right of 1st refusal Suggested dates October 11-20Sept 16 - Oct 13 $55,000$75,000 460$21,500 Taste of VailTaste of Vail Inc. April 4 - 6$20,000$70,000 456$30,000 Vail Film Festival Colorado Film InstituteMar 28 - 31$50,000$100,000 453$40,000 Vail Valley Cup Soccer TournamentVail Valley Soccer ClubOct 5 - 6$2,000$6,200 451$5,000 Vail Rocks!Love Strength Hope15-Jun$25,000$25,000445$25,000 HoliDAZEHighlineDec 16 - 22, Dec 31$50,000$75,000 437$50,000 OktoberfestHighlineSept 6 - 8, 13 - 15$50,000$85,000 417$45,000 Vail Farmer's Market and Art FestivalMeadow Drive PartnershipJun 16 - Sept 22$35,000$40,000 415$35,000 America CupJohn KnightSept 10 - 15$5,000$5,000 409$5,000 Vail America DaysHuman Movement ManagementJuly 4 - 6$65,000$65,000 407$40,000 Vail New Year's EveHighlineDec. 31$0$20,000 403$10,000 The Vail "Living Well" Summit DiscoverWell: Send to Town Council for funding Sept 19 - 21$35,000$50,000 402$0 SORTED BY GRID SCORE HIGHEST TO LOWEST Special Event Funding Available: $768,500 Total 2013 Funding Available: $836,810.00 2 - 6 - 10 1/8/2013 TOV/CSE 2013 RFP's Received/revised 11/27/2012 11:27 AM CSE Funding Applications for 2013 Special Events Event:Producing Entity:2013 Dates: 2012 Funds Received 2013 Funds Requested: Grid Score (600 MAX)2013 Allocation SORTED BY GRID SCORE HIGHEST TO LOWEST Special Event Funding Available: $768,500 Total 2013 Funding Available: $836,810.00 Tour of Vail Anthem Sports: If no Pro-Challenge, consider funding using the event funds in the VLMD budgeted for the USAPCC Aug 16 - 18$50,000$100,000 402$0 King of the Mountain King of the Mountain Volleyball/ Leon Fell ($3K for Solaris Contingency)June 14 - 16$4,000$10,000 394$7,000 Soul Music Fest Rhonda July Jackson: Use local production company and marketing assistance Augt 16-18th OR August 23-25$45,000$50,000 394$40,000 SSCV: Noram Cup Ski and Snowboard Club VailJan 31 - Feb 5$0$2,500 390$2,000 Colorado Grand Finish Line and ConcoursThe Colorado GrandSept 20 - 21$2,000$5,000 380$2,000 Falling Leaf 50 Mountain Bike RaceVail Recreation DistrictSept. 21 n/a$6,000 379$0 Vail Arts Festival Eagle Valley EventsJune 28 - 30$10,000$18,000 379$10,000 Ultra Race of Champions (ROC)Bad to the Bone Endurance Sports LLCSept 27 - 28n/a$75,000373$0 Lionshead Family Saturday Afternoon Club Blue Creek Productions, Inc. with The Lionshead Merchant Association 9 Sats, 6/15, 22, 29; 7/6, 13, 20, 27; 8/3 & 10)$20,000$23,400 373$20,000 US Youth Fly Fishing National ChampionshipsAmerica Cup IncJun 20 -22$0$2,500357$2,500 Pink VailVVMCMar. 9$0$25,000 351$10,000 Vail Songwriters Festival NCR 365May 23 - 26 n/a$75,000 346$0 Vail Victory RacesSpeckled-Hound ConsultingSep 1 & 8 n/a$45,705 322$0 Season of SongMorris LawrenceSept 6 - 8$10,000$120,000 322$0 Vail Automotive Classic Vail Valley Concours d/b/aVail Automotive ClassicSept. 8$1,000$5,800 311$1,000 Vail Global Energy ForumVail Global Energy ForumMar 1 - 3 n/a$35,000 310$0 Beyond Winning and Losing Vail SymposiumApril 5 - 6 n/a$37,500 304$0 Skating Club of Vail: Invitational & Mountain FunThe Skate Club of VailJuly 10 - 14$0$7,500 303$0 Commando Bootcamp Games and Mutt'er RunJim ReynoldsMay 25 - 26 n/a$10,000 241$0 Vail Whitewater Park Kayak DemosAlpine KayakTues, May 14-June 18$2,000$3,000229$2,000 Carpenter's Ball Habitat for HumanityMar. 9 n/a$5,000 185$0 TOTAL:$1,818,105$768,500 2 - 6 - 11 1/8/2013 TOV/CSE 2013 RFP's Received/revised 11/27/2012 11:27 AM CSE Funding Applications for 2013 Special Events Event:Producing Entity:2013 Dates: 2012 Funds Received 2013 Funds Requested: Grid Score (600 MAX)2013 Allocation SORTED BY GRID SCORE HIGHEST TO LOWEST Special Event Funding Available: $768,500 Total 2013 Funding Available: $836,810.00 Event Funds remaining:$0 Administrative Allocations:As approved November 7, 2012 Admin Expenses:$3,050 Professional Fees: Assistant$15,360Winter:$279,500 Professional Fees: Consulting$49,900Summer:$489,000 Total Administrative Costs:$68,310 CSE Requests to Council:The Vail Living Well Summit$25,000 Event/Marketing Liaison $15,000 Intercept / Attendance Research$50,000 Memorial Day (not to exceed)$100,000 TOTAL:$190,000 (Possible funding from VLMD) Funds Allocated Per Season: 2 - 6 - 12 1/8/2013 1 March April May June July August Sept. Oct. Nov Dec. Summer Games Taste of Vail Vail Lacrosse Shootout Gran Fondo US Ski Team Event Vail Arts Festival King Mtn Volleyball Vail Film Festival Gourmet On Gore Snow Daze Holidaze Bravo Dance Festival America Days 3x3 Soccer Kids Adventure Race Soul Fest WW Kayaking Demos Oktoberfest I & II Auto Classic Colo Grand Living at Your Peak Restaurant Month America’s Cup Challenge Cup Season Of Song Farmers Farmers Farmers Farmers Farmers Farmers Vail Rocks HSN HSN HSN HSN HSN HSN 2012 Calendar Overview Spring Back To Vail Vail Jazz Festival Vail Jazz Festival Vail Jazz Festival Town of Vail | 11/14/2012 2 - 6 - 13 1/8/2013 2 Feb March April May June July August Sept. Oct. Nov Dec. Summer Games Taste of Vail Vail Lacrosse Shootout US Ski Team Event Vail Arts Festival King Mtn Volleyball Gourmet On Gore Snow Daze Holidaze Bravo Dance Festival America Days 3x3 Soccer Kids Adventure Race Soul Fest WW Kayaking Demos Oktoberfest I & II Auto Classic Colo Grand Living Well Summit America’s Cup Challenge Cup Farmers LHSAC Farmers LHSAC Farmers LHSAC Farmers LHSAC Farmers LHSAC Farmers LHSAC Farers LHSAC HSN HSN HSN HSN HSN HSN HSN 2013 Calendar – New Events/New Timing Vail Film Festival Spring Back To Vail Vail Jazz Festival Vail Jazz Festival Vail Jazz Festival Vail Valley Soccer Vail Rocks! New Year’s Eve Pink Vail New Event Burton US Open Winter Games Youth Fly Fishing Champ. Town of Vail | 11/14/2012 2 - 6 - 14 1/8/2013 To: Vail Town Council From: Vail Local Marketing District Advisory Council (VLMDAC) Date: November 26, 2012 The VLMDAC would like to endorse the efforts and 2013 funding plan that the CSE recently presented at the November 15th, 2012 VLMD meeting. At the direction of the Vail Town Council, VLMDAC and CSE have been working closely on increasing our collaborative efforts. We have asked the CSE to focus on events that support the Vail brand and attract overnight guests. The CSE has listened and has actively worked to improve their strategy, increase their accountability and develop tactics to support our new and current events. The VLMDAC also supports additional funding for staffing so that the Town of Vail and CSE can assist the event promoters to develop and grow the most successful events possible for all parties. The VLMDAC looks forward to our continued partnership with the CSE in the years ahead. 2 - 6 - 15 1/8/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 8, 2013 ITEM/TOPIC: Adjournment (2:00 p.m.) 1/8/2013