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HomeMy WebLinkAbout2015-06-02 Agenda and Supporting Documentation Town Council Regular SessionVAIL TOWN COUNCIL REGULAR MEETING AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 6:00 P.M., JUNE 2, 2015 ruwx OF va' ii> NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. ITEM/TOPIC: Town of Vail Employee Recognitions: 1) Vail Communication Center received the APCO's State of Colorado Communications Center of the Year Award 2) Kelli McDonald, Economic Development Manager, received Vail Valley Partnership's Tourism Professional of the Year Award 3) Nomination for Town of Vail for Actively Green 2015 Award by Vail Valley Partnership (represented by Kristen Bertuglia, Environmental Sustainability Manager) (5 min.) 2. ITEM/TOPIC: Citizen Participation (10 min. ) 3. ITEM/TOPIC: Consent Agenda: 1) Resolution No. 13, Series of 2015, A Resolution Authorizing the Town of Vail to Grant a Utility/Access Easement to Comcast of Colorado VI, LLC and Setting Forth Details in Regard Thereto 2) Resolution No. 14, Series of 2015, A Resolution Approving an Intergovernmental Agreement (the "IGA") Between the Town of Vail and Eagle County (ECO Trails Department), and Setting Forth Details in Regard Thereto 3) Resolution No. 15, Series of 2015, A Resolution Approving an Intergovernmental Agreement Between the Town of Vail and Colorado Department of Transportation Regarding Bustang Access; and Setting Forth Details in Regard Thereto 4) Resolution No. 16, Series of 2015, A Resolution for the Chamonix Parcel Contract Award for Site Design and Architectural Services 5) Award contract for design services for Bridge Road (5 min. ) 4. ITEM/TOPIC: Appointments to Vail Housing Authority and Vail Local Licensing Authority (5 min. ) ACTION REQUESTED OF COUNCIL: Town Council makes appointments to Vail Local Housing Authority and Vail Local Licensing Authority BACKGROUND: The interviews for interested candidates to serve on the VLHA and VLLA were conducted during the earlier work session. One appointment will need to be made to the VLHA and three appointments will need to be made to the VLLA. There is a five year term for the VLHA position and two year terms for the VLLA positions. 5. ITEM/TOPIC: Town Manager's Report (5 min. ) 6. ITEM/TOPIC: Presentation of the 2014 audited financial statements for the 6/2/2015 Town of Vail. (15 min.) PRESENTER(S): Kathleen Halloran, Finance Director and Michael Jenkins, McMahan and Associates ACTION REQUESTED OF COUNCIL: The 2014 audited financial statements are presented for Council information; no action is requested. BACKGROUND: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and copies made available for public inspection at the municipal building. The 2014 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A., CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION: None - this presentation is for information only. 7. ITEM/TOPIC: Vail Golf and Nordic Clubhouse Project Update (30 min) PRESENTER(S): Greg Hall, Director of Public Works Town of Vail, Chris Penney, NV5 Inc., Project Owners Representative, Tim Losa and Zehren and Associates Inc., Project Architect ACTION REQUESTED OF COUNCIL: No action is requested at this time. This is an update on the progress of the project since the last town council project update on March 3. 2015. BACKGROUND: The update on the Golf and Nordic Center remodel project will include the following items: Project progress Presentation of DRB approved plans and exterior renderings Presentation of proposed interior finishes and interior renderings Project schedule and public outreach STAFF RECOMMENDATION: No recommendation 8. ITEM/TOPIC: Recreational Marijuana Public Hearing. The purpose of this public hearing is to provide the Vail Town Council with an update on recreational marijuana in Colorado 18 months after its legalization and to receive direction from the Town Council on what steps, if any, the Town Council wishes to take in establishing a policy for regulating recreational marijuana establishments within the community. (45 min) PRESENTER(S): George Ruther, Director of Community Development ACTION REQUESTED OF COUNCIL: The Vail Town Council needs to create a policy on the sale/operation of recreational marijuana facilities for the Town of Vail. To effectively do so, the Town Council must ultimately answer two fundamental questions: 1. Should the recreational sale/operation of recreational marijuana facilities be allowed in the Town of Vail? 2. If allowed, how are recreational sales/operations best accomplished? BACKGROUND: The Town of Vail has not taken a final position on an adopted policy on the operation of retail marijuana establishments. Instead, a temporary ban (Ordinance No. 12, Series of 2014) has been placed on the operation of retail marijuana establishments in Vail pending the outcome of a 6/2/2015 larger, community -wide policy discussion. The ban is in effect until August 4, 2015 and may be shortened or lengthened if necessary. STAFF RECOMMENDATION: The Town staff recommends the Vail Town Council provides policy direction this issue. To facilitate the discussion, two questions relating to policy were identified in Section II of the staff memorandum. Pending answers to the policy questions, there appears to be several options for consideration. 1. Ban retail sales of recreational marijuana in the Town of Vail 2. Allow for the retail sale of recreational marijuana and formulate implementation strategies to be adopted into regulation 3. Ban the retail sales of recreational marijuana but formulate implementation strategies to be adopted into regulation that allow for legal recreational marijuana consumption 9. ITEM/TOPIC: Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail. (20 min.) PRESENTER(S): George Ruther, Director of Community Development ACTION REQUESTED OF COUNCIL: Approve, approve with modifications or deny Ordinance No. 6, Series of 2015 on first reading BACKGROUND: The purpose of this memo is to present Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail to the Vail Town Council on first reading. If approved, this new regulation accomplishes five objectives: 1.) further protects the public health, safety, and welfare of the community by regulating sensitive stream tract areas in the Town, 2.) prohibits private encroachments in stream tract areas, 3.) further ensures that the stream tract areas remain natural open space and serve the purposes for which they were intended, 4.) creates a procedure by which the Town may abate an encroachment and seek reimbursement, and 5.) establishes a mandatory violation and penalty provision for failure to comply. STAFF RECOMMENDATION: The Community Development Department and the Town Attorney's Office recommends the Vail Town Council adopts Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail, on first reading. 10. ITEM/TOPIC: Adjournment (8:25 p.m.) 6/2/2015 TOWN OF VAIN VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Town of Vail Employee Recognitions: 1) Vail Communication Center received the APCO's State of Colorado Communications Center of the Year Award 2) Kelli McDonald, Economic Development Manager, received Vail Valley Partnership's Tourism Professional of the Year Award 3) Nomination for Town of Vail for Actively Green 2015 Award by Vail Valley Partnership (represented by Kristen Bertuglia, Environmental Sustainability Manager) 6/2/2015 TOWN OF VAIN VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Citizen Participation 6/2/2015 Towx of vn' 1[1 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Consent Agenda: 1) Resolution No. 13, Series of 2015, A Resolution Authorizing the Town of Vail to Grant a Utility/Access Easement to Comcast of Colorado VI, LLC and Setting Forth Details in Regard Thereto 2) Resolution No. 14, Series of 2015, A Resolution Approving an Intergovernmental Agreement (the "IGA") Between the Town of Vail and Eagle County (ECO Trails Department), and Setting Forth Details in Regard Thereto 3) Resolution No. 15, Series of 2015, A Resolution Approving an Intergovernmental Agreement Between the Town of Vail and Colorado Department of Transportation Regarding Bustang Access; and Setting Forth Details in Regard Thereto 4) Resolution No. 16, Series of 2015, A Resolution for the Chamonix Parcel Contract Award for Site Design and Architectural Services 5) Award contract for design services for Bridge Road ATTACHMENTS: Resolution No. 13, Series of 2015 Resolution No. 14, Series of 2015 Resolution No. 15, Series of 2015 Resolution No. 16, Series of 2015 Bridge Road Design Contract Memorandum 6/2/2015 RESOLUTION NO. 13 Series of 2015 A RESOLUTION AUTHORIZING THE TOWN OF VAIL TO GRANT A UTILITY/ACCESS EASEMENT TO COMCAST OF COLORADO VI, LLC; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the "Town"), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the "Charter"); WHEREAS, the members of the Town Council of the Town (the "Council") have been duly elected and qualified; WHEREAS, Comcast of Colorado VI, LLC ("Comcast") is requesting an easement from the Town to install service to 227 Wall Street, (the "Easement"); and WHEREAS, the Town wishes to grant Comcast the Easement. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council hereby approves the Easement and authorizes the Town Manager to execute the Easement on behalf of the Town in substantially the same form as attached hereto as Exhibit A and in a form approved by the Town Attorney. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 2nd day of June, 2015. Andrew P. Daly Town Mayor ATTEST: Patty McKenny, Town Clerk Resolution No. 13, Series 2014 6/2/2015 UTILITY EASEMENT AGREEMENT THIS EASEMENT AGREEMENT (the "Agreement") is dated this day of , 2015, by and between the Town of Vail, Colorado, a Colorado home rule municipality (the "Town"), and Comcast of Colorado VI, LLC ("Grantee"). WHEREAS, Grantee desires to acquire an easement for the purpose of the installation and operation of utility facilities upon and beneath the surface of the property described in Exhibit A, attached hereto and incorporated herein by this reference (the "Easement Property"); and WHEREAS, the Town is willing to convey an easement to Grantee for the aforesaid purposes on the terms and conditions set forth below. NOW, THEREFORE, for and in consideration of the sum of $10 paid by Grantee to the Town, the covenants of Grantee herein contained, and other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as follows: Section 1. Conveyance of Easement. The Town does hereby grant and convey unto Grantee, it successors, assigns, lessees, licensees, and agents, an easement upon and beneath the surface of the Easement Property for the installation and operation of utility facilities consisting of wires, underground conduits, cables, pedestals, vaults, above -ground enclosures, markers, concrete pads and other appurtenant fixtures and equipment necessary or useful for distributing broadband services and other like communications. Grantee shall have the right of ingress and egress, consistent with this Agreement, upon the Easement Property for the construction, reconstruction, operation, maintenance and removal of the utility facilities. Section 2. Use of Easement Property. Grantee shall be solely responsible for installation and maintaining the utility facilities. In making any excavation on the Easement Property, Grantee shall make the same in such manner as will cause the least injury to the surface of the ground around such excavation, and shall replace the earth so removed by it and restore the area to as near the same condition as it was prior to such excavation as is practical. Section 3. Relocation. Within 60 days of receipt of written notice from the Town, Grantee shall relocate the utility facilities within the Easement Property at Grantee's sole cost and expense. Section 4. Retained Rights. The Town shall have all rights to the Easement Property not expressly granted hereby, including the right to construct structure(s) over the Easement Property, so long as such structures do not interfere with Grantee's rights under this Agreement. Section 5. Miscellaneous. a. All provisions herein contained, including the benefits, burdens and covenants, are intended to run with the land and shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto. 1 5/26/15 II VWS-STORAGEIDESKTOPSPTKASSMELIDESKTOPI UTILITYEASEMENT-A052615.DOCX 6/2/2015 b. Grantee shall insure itself against liability, loss, or damages arising out of the construction, existence, use, operation or maintenance of the utility facilities. C. This Agreement constitutes all of the agreements, understandings, and promises between the parties hereto with respect to the subject matter hereof. d. The Town and its officers, attorneys and employees are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to the Town and its officers, attorneys or employees. e. Grantee agrees to indemnify and hold harmless the Town and its officers, insurers, volunteers, representative, agents, employees, heirs and assigns from and against all claims, liability, damages, losses, expenses and demands, including attorney fees, on account of injury, loss, or damage, including without limitation claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever, which arise out of or are in any manner connected with this Agreement or the Easement Property if such injury, loss, or damage is caused in whole or in part by, the act, omission, error, professional error, mistake, negligence, or other fault of Grantee, any subcontractor of Grantee, or any officer, employee, representative, or agent of Grantee, or which arise out of a worker's compensation claim of any employee of Grantee or of any employee of any subcontractor of Grantee. f. There are no third -party beneficiaries to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their respective duly authorized officers as of the date and year first above written. ATTEST: Patty McKenny, Town Clerk TOWN OF VAIL, COLORADO Stan Zemler, Town Manager 2 5/26/15 II VWS-STORAGEIDESKTOPSPTKASSMELIDESKTOPI UTILITYEASEMENT-A052615.DOCX 6/2/2015 STATE OF COLORADO ss. COUNTY OF GRANTEE The foregoing instrument was subscribed, sworn to, and acknowledged before me this day of , 2015, by My commission expires: (SEAL) Notary Public 5/26/15 II VWS-STORAGEIDESKTOPSPTKASSMELIDESKTOPI UTILITYEASEMENT-A052615.DOCX 6/2/2015 wall st Wed May 13 2015 01:27:52 PM. 6/2/2015 EXHIBIT LOT 1, A RESUBDIVISION OF LOT a & PART OF LOT c, BLOCK 5-C VAIL VILLAGE, FIRST FILING TOWN OF VAIL, EAGLE COUNTY, COLORADO SCALE: 1 " = 10' LAZIER ARCADE CONDOMINIUMS POINT OF TERMINU (REC. No. 200817444) 227 WALL STREET Pvo Lrc 30091r a -5/11/2015 J �iu At LAN-� Gore Range Surveying, LLC R.0 Bax 15 Avon, CO 91620 (970) 479-8698 • fax (9701479-0955 LOTS b&c BLOCK 5—C VAIL VILLAGE FIRST FILING W o� ° C �g �2 BEOGIINNINO �G S NORTHEASTERLY TRUE POINT OF CORNER OF LOT 1 BEGINNING 46'56'14" W — 13.59' LOT 1 A RESUBDIVISION OF LOT a & PART OF LOT c BLOCK 5—C VAIL VILLAGE, FIRST FILING (REC. No. 199794) PARCEL DESCRIPTION: A STRIP OF LAND SITUATED IN A PART OF LOT 1, A RESUBDIVISION OF PART OF LOT a, & PART OF LOT c, BLOCK 5—C, VAIL VILLAGE, FIRST FILING, PER THE PLAT THEREOF RECORDED MAY 29, 1980 UNDER RECEPTION No. 199794 IN THE OFFICE OF THE EAGLE COUNTY CLERK AND RECORDER, SAID STRIP BEING 5.00 FEET IN WIDTH AND 2.50 FEET ON EITHER SIDE OF THE FOLLOWING DESCRIBED CENTERLINE, THE SIDELINES OF WHICH BEING LENGTHENED OR SHORTENED TO TERMINATE ON THE SUBJECT PARCEL BOUNDARY, SAID CENTERLINE BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEASTERLY CORNER OF SAID LOT 1; THENCE S70°30'59"W 32.04 FEET ALONG THE NORTHERLY BOUNDARY OF SAID LOT 1 TO THE TRUE POINT OF BEGINNING; THENCE DEPARTING SAID NORTHERLY BOUNDARY S46°56'14"W 13.59 FEET TO A POINT ON THE WESTERLY BOUNDARY OF SAID LOT 1, BEING THE POINT OF TERMINUS. 6/2/2015 RESOLUTION NO. 14 Series of 2015 A RESOLUTION APPROVING AN INTERGOVERNMENTAL INTERGOVERMENTAL AGREEMENT (THE "IGA") BETWEEN THE TOWN OF VAIL AND EAGLE COUNTY (ECO TRAILS DEPARTMENT) CONCERNING A GRANT OF TRAIL MAINTENANCE FUNDS; 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 has made a request to the County for maintenance project funding to replace the wildlife screen located over the Mud Gulch wildlife underpass located below the Gore Valley Trail and other trail repairs adjacent to the wildlife screen, in accordance with the Trail Repair and Safety Grant program managed by the County's ECO Trails Department; WHEREAS, the County has reviewed the request and are in favor of awarding the grant in an amount of $12,858.00; and WHEREAS, the Council's approval of Resolution No. 1 4 , Series 2015, is required to enter into the IGA. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council hereby approves the IGA and authorizes the Town Manager to enter into the IGA with the County on behalf of the Town in substantially the same form as attached hereto as Exhibit A and in a form approved by the Town Attorney. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 2nd day of June, 2015. Andrew P. Daly Town Mayor ATTEST: Patty McKenny Town Clerk Resolution No. 14, Series of 2015 6/2/2015 EXHIBIT A INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF VAIL AND EAGLE COUNTY, COLORADO CONCERNING A GRANT OF TRAIL MAINTENANCE FUNDS THIS INTERGOVERNMENTAL AGREEMENT ("Agreement") is entered into by and between The Town of Vail, a Colorado municipal corporation (hereinafter "Town") and Eagle County, a body corporate and politic of the state of Colorado (hereinafter "County"). Collectively the Town and County shall be referred to as the "Parties". This Agreement is entered into and is effective on the day of , 2015. RECITALS WHEREAS, C.R.S. 29-20-101et.seq. encourages intergovernmental agreements through which local governments cooperate and participate in joint projects; and WHEREAS, the Town and County have been working cooperatively to fund, construct and manage a phased recreation and transportation public trail systems through Eagle County known as the Eagle Valley Trail and Gore Valley Trail; and WHEREAS, County has received a request from the Town for maintenance project funding to replace the wildlife screen located over the Mud Gulch wildlife underpass located below the Gore Valley Trail and other trail repairs adjacent to the wildlife screen (hereinafter "Project") , in accordance with the Trail Repair and Safety Grant program managed by County's ECO Trails Department (hereinafter "ECO"); and WHEREAS, the request has been reviewed by the County's advisory boards on trail system matters, including the Eagle Valley Trails Committee and the Eagle County Regional Transportation Authority, and said bodies recommend in favor of funding the request. I_Tr]C744►�14zkI NOW THEREFORE, in consideration of the mutual rights and obligations as set forth below, the Parties agree as follows: PROJECT FUNDING 1.1 County, per the recommendation of the Eagle Valley Trails Committee and ECO Board will contribute up to $12,858.00 to the estimated project cost of $25,717.00. The funds will be paid from the ECO Trails Department budget. 1.2 In order to receive the funds granted under this Agreement, Contractor will submit an invoice to County at the completion of the project. Invoices will be Resolution No. 14, Series of 2015 6/2/2015 submitted to ECO Trails, P.O. Box 1070, Gypsum, Colorado 81637. Payment will be made according to the County's regular bill paying procedure. 1.3 Notwithstanding anything to the contrary contained in this Agreement, County shall have no obligations under this Agreement after, nor shall any payments be made to Town in respect of any period after December 31 of any year, without an appropriation therefor by County in accordance with a budget adopted by the Board of County Commissioners in compliance with Article 25, title 30 of the Colorado Revised Statutes, the Local Government Budget Law (C.R.S. 29-1-101 et. seq.) and the TABOR Amendment (Colorado Constitution, Article X, Sec. 20). 2. SCOPE AND DESCRIPTION OF PROJECT 2.1 The project work will consist of the following components: a. Replacement of the wildlife screen located over the Mud Gulch wildlife underpass located below the Gore Valley Trail. The wildlife screen is a requirement of the State of Colorado permit that allowed the trail construction on lands owned by the state. b. Site work related to installation and trail repairs adjacent to the wildlife screen. c. The work shall be as otherwise described in the Town's application on file with the ECO Trails department. 2.2 The section of trail within the Town for which the ECO contribution is being granted will be constructed to the standards in the Eagle Valley Regional Trails Plan, as adopted by the Town of Vail in 2001. 3. PROJECT OWNERSHIP AND MANAGEMENT UPON COMPLETION 3.1 Town shall be solely responsible for the design, construction, management and maintenance of the Project and shall own the Project. 3.2 The section of the Gore Valley Trail for which the contribution is being requested will be maintained by the Town as follows: a. Maintenance as required for the wildlife screen b. Monthly sweeping, March through November c. Monthly vegetation control including weed removal, mowing, cutting and trimming d. Trash removal e. Repair and replacement of signs, fences, railings, striping, drainage and other trail features f. Snowplowing, in season g. Inspections monthly, or no less than quarterly 4. INDEMNIFICATION, INSURANCE AND GOVERNMENTAL IMMUNITY 4.1 To the extent permitted by law, each party shall indemnify, defend and hold harmless the other including its, agents, officers, servants and Resolution No. 14, Series of 2015 6/2/2015 employees of and from any and all loss, costs, damage, injury, liability, claims, liens demands, action and causes of action whatsoever, including attorney fees, arising out of or related to its negligent acts or omissions. 4.2 The Town shall provide its own public liability, property damage, and errors and omissions insurance coverage as County may deem adequate and necessary for any potential liability arising from this Agreement. 4.3 Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to either party, its officials, employees, contractors,' or agents, or any other person acting on behalf of either party and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24, Article 10, Part 1 of the Colorado Revised Statutes. 5. TERM AND TERMINATION 5.1 The term of this Agreement shall commence on the date executed by both parties and shall terminate on December 31, 2015 unless the Agreement is extended by both parties prior to that end date. Any unexpended funds may be required to be returned to County as well as any funds not properly expended according to project objectives. 5.2 If either party fails to substantially perform the duties and obligations in accordance herewith, the other party may terminate this Agreement upon seven (7) days written notice to that party, unless that party cures the breach within the seven (7) day remedy period. Either party may terminate this Agreement without cause upon thirty (30) days written notice. 5.3 Notwithstanding the foregoing, neither party may terminate this Agreement with respect the Project as a whole or any phase, if such termination would cause a violation of the terms of a grant agreement. In the event of termination, the Parties will pay amounts due and owing for work satisfactorily performed to the date of termination and will close out grants in accordance with their terms. 6. MISCELLANEOUS 6.1 Notices. All notices, bills and payments shall be made in writing and may be given by personal delivery or by mail. Notices, bills, payments sent by mail should be addressed as follows: ECO Trails Attn: Ellie Caryl P.O. Box 1070 Gypsum, CO 81637 Phone: 970-328-3523 Resolution No. 14, Series of 2015 6/2/2015 Town of Vail Attn: Gregg Barrie 1309 Elkhorn Drive Vail, CO 81657 Phone: 970-479-2337 6.2 Modification. This Agreement contains the entire agreement between the parties, and no agreement shall be effective to change, modify, or terminate in whole or in part unless such agreement is in writing and duly signed by the party against whom enforcement of such change, modification, or termination is sought. 6.3 No Third Party Beneficiaries. Nothing contained in this Agreement is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party, including any agent, sub - consultant or sub -contractor of Town or County. Absolutely no third party beneficiaries are intended by this Agreement. 6.4 No Assignment. Neither party shall assign this Agreement without the prior written consent of the other. Either party may terminate this Agreement if the other assigns this Agreement without the prior written consent of the other. 6.5 Jurisdiction and Venue. This Agreement shall be interpreted in accordance with the laws of the state of Colorado and the Parties agree to submit to the jurisdiction of the courts thereof. Venue shall be in the Eagle County District Court. 6.6 Invalidity. Invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed as if such invalid or unenforceable provision was omitted. 6.7 Compliance with Law. Each party shall comply with all applicable federal, state and local rules, regulations and laws. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Resolution No. 14, Series of 2015 6/2/2015 IN WITNESS WHEREOF, each party, by signature below of its authorized representative, hereby acknowledges that it has read this Agreement, understands it and agrees to be bound by its terms and conditions. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its BOARD OF COUNTY COMMISSIONERS IN Kathy Chandler -Henry, Chair ATTEST: la Teak J. Simonton, Clerk to the Board TOWN OF VAIL: Stan Zemler, Town of Manager ATTEST: la Patty McKenny, Town Clerk Resolution No. 14, Series of 2015 6/2/2015 RESOLUTION NO. 15 Series of 2015 A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT (THE "IGA") BETWEEN THE TOWN OF VAIL AND COLORADO DEPARTMENT OF TRANSPORTATION REGARDING BUSTANG ACCESS; 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 Colorado Department of Transportation ("CDOT") wishes to have limited Commercial Vehicle access at the Town's Village Transportation Center for the purpose of picking up and discharging CDOT Bustang passengers; WHEREAS, the Council's approval of Resolution No. 1 5, Series 2015, is required to enter into the IGA. NOW THEREFORE, B E IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council hereby approves the IGA and authorizes the Town Manager to enter into the IGA with CDOT on behalf of the Town in substantially the same form as attached hereto as Exhibit A and in a form approved by the Town Attorney. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 2nd day of June, 2015. Andrew P. Daly Town Mayor ATTEST: Patty McKenny Town Clerk Resolution No. 15, Series of 2015 6/2/2015 ACCESS AGREEMENT Between Town Of Vail, Ace Express Coahces, LLC And The Colorado Department of Transportation This Agreement ("Agreement") is made this day of , 2015, between Town of Vail ("Local Agency" or "TownAce Express Coaches, LLC ("Ace Express", "Contractor" or "Operator") and the STATE of COLORADO acting by and through the Department of Transportation ("State" or "CDOT"). The Local Agency and CDOT may also be referred to herein individually as a "Party" or collectively as the "Parties". RECITALS 1. Local Agency owns and operates transit station at Vail Transit Center, 72 S. Frontage Road in Vail, Colorado 81657 hereafter referred to as "Facility" or "Premises". 2. CDOT operates the Bustang Service through Contractor. 3. The lines of the Parties connect at Vail Transit Center. 4. The purpose of this Agreement is to allow Contractor limited access to Vail Transit Center for the purpose of picking up and discharging CDOT Bustang passengers. TERMS AND CONDITIONS A. PURPOSE CDOT wishes to have Commercial Vehicle access at Local Agency's transportation facility located at 72 S. Frontage Road, Vail, Colorado, 81657 more particularly described below, for the purpose of engaging in transportation of passengers and luggage, and has requested access to Local Agency's Premises to accomplish this objective. The Parties have determined the Premises are an appropriate site for this purpose. B. LICENSE Subject to all the terms and conditions hereof, Local Agency hereby grants to CDOT and Contractor a non-exclusive license ("License") for the right of ingress and egress over and upon the Local Agency Facilities, as is depicted on Exhibit A, which is attached hereto and fully incorporated by reference herein, solely for use as a bus pick-up and drop-off location, and for certain other activities incidental thereto, as may be particularly described herein. 1. CDOT and Contractor are prohibited from constructing any fixtures or improvements on the Local Agency Facilities. 2. This Agreement is subject to all outstanding rights, including any and all existing licenses affecting the Local Agency Facilities, whether recorded or unrecorded, and is subject to Local Agency's rights to renew and extend the same. 3. CDOT and Contractor acknowledge that the Local Agency Facilities are located on property that is currently used as a Local Agency transit center. CDOT and Contractor shall not 6/2/2015 interfere with Local Agency's use and/or maintenance of the Facility, nor interfere with the public use of the Facility. Local Agency shall retain all other rights in and usage of the Local Agency Facility not inconsistent with the reasonable enjoyment of this License. 4. CDOT and Contactor shall not permit any lien to be placed on Local Agency property arising from performance of work hereunder, and shall promptly cause any such lien to be removed. 5. The right to use the Local Agency Facility granted hereunder is hereby contracted for and shall be granted with respect to the Local Agency Facilities in its "as is" physical condition without any further warranty, express or implied. This grant is subject to all other prior granted or reserved rights and interests in the Local Agency Facility, if any, whether of record or not. C. CDOT and CONTRACTOR ACTIVITES CDOT Shall notify Local Agency of its requested date when Contractor would like its service at Local Agency Facility to commence, but such notification shall occur no later than 3 days prior to the date CDOT would like service to commence. Local Agency shall notify CDOT in writing of the date service may commence. 1. CDOT's Contractor shall utilize the locations designated in Exhibit A as its passenger loading and unloading points. All CDOT Bustang buses operated by Contractor shall enter and exit Local Agency Facility in accordance with the directional signage and street markings displayed at Facility. 2. Contractor shall operate the Bustang Service in accordance with the times of service and number of buses as provided in Exhibit B, which is attached and fully incorporated by reference herein. 3. Contractor shall have access to all common areas of the Premises open to the general public such as waiting areas, restrooms, walk ways, and any other areas required for passenger movements. 4. By written notification (Exhibit C), the Parties may hereunder modify the schedule and access locations, as provided in Exhibits A and B, as necessary to effectuate the Agreement. 5. CDOT and Contractor shall immediately notify Local Agency dispatch, if applicable, at the number listed in Exhibit A if any accident or injury to person is observed on Local Agency property whether or not such accident involves Contractor vehicles and/or employees. Contractor drivers, supervisors and other employees shall strictly adhere to all instructions communicated by Local Agency Dispatch. CDOT and its employees and Contractor and its employees agree to cooperate with the Local Agency in any investigation into any such event. 6. In its provision of the transportation services related to this Agreement CDOT shall be solely responsible for compliance with all applicable statutes, laws and regulations, including but not limited to the Americans with Disabilities Act. Other than as specifically provided herein, Local Agency shall not be responsible for any transportation services, including but not limited to compliance with all applicable statutes, laws and regulations. 2 6/2/2015 D. CONDITION OF PREMISES Local Agency shall maintain Premises in the same condition they were in at the commencement of this Agreement, reasonable wear and tear excepted. The Local Agency shall maintain Premises at their sole expense with no contribution from CDOT or Contractor. E. TERM OF AGREEMENT This Agreement, including the License herein, shall become effective as of the date first written above and shall continue until terminated by any of the Parties. The Parties may terminate this Agreement, including the License granted herein, with 180 days' prior written notice. F. NOTICES For CDOT: Mike Timlin 4201 East Arkansas Denver, CO 80222 303-757-9648 Michael.timilin@state.co.us For Horizon Coach Lines: John Montgomery Ace Express Coaches, LLC President & CEO 15150 Preston Road, Ste. 300 Dallas, TX 75248 Ph: 972-980-3991 Cell: 469-401-5908 Email: john.montgomery@aaahinc.com G. STATUS OF PARTIES For Town of Vail: Mike Rose, Transportation Manager 241 South Frontage Road East, #4 Vail, CO 81657 970-479-2349 mrose@vailgov.com The Parties shall be solely responsible for hiring, supervising and discharging of their own employees or contractors. Local Agency shall have no responsibility for, nor authority or control with respect to, the supervision and management of the CDOT employees, Contractor employees or other employees or contractors who work in connection with the transportation service provided in this Agreement. The Parties agree that the status of each Party shall be that of any independent contractor to the other, and it is not intended, nor shall it be construed that one Party or any officer, employee, officer, agent or representative of the other Party. Nothing contained in the Agreement or documents incorporated by reference herein or otherwise, creates any partnership, joint venture or other association or relationship between Local Agency, CDOT and Contractor. Any approval, review, inspection, direction or instruction by Local Agency or any party on behalf of Local Agency shall in no way affect any Party's independent contractor status or obligation to perform 6/2/2015 in accordance with this Agreement. No Party has authorization, express or implied, to bind the other to any agreements, liability, or understanding except as expressly set forth in this Agreement. H. INSURANCE CDOT, through Contractor, shall procure and maintain for the duration of the agreement titled, Access Agreement, insurance as set forth below against claims, damages, losses, and expenses which may arise from or in connection with the performance of this Agreement. Contractor will carry all required insurance with CDOT and Town of Vail as additionally insured. i. GENERAL LIABILITY: Commercial General Liability Insurance shall be written on an ISO form CG 00 01 occurrence form or equivalent for hazards of (a) Operation, (b) Subcontractors and Independent Contractors with minimum limits of $2,000,000 each occurrence and $4,000,000 aggregate. The general aggregate coverage limits shall apply per project and shall be evidenced on the Certificate of Insurance. Insurance shall include contractual liability coverage sufficient to meet the requirements of this Lease Agreement (including defense costs and attorney's fees assumed under the contract, which shall be payable in addition to the limit of liability.). a. The General Liability policy shall be endorsed to name the STATE, its agents, officers, directors, officials, employees, volunteers as additional insureds. The coverage shall contain no special limitations on the scope of protection afforded to Additional Insured parties. b. Coverage shall be primary and non-contributory as respects to any insurance held by the STATE. Any insurance or self-insurance maintained by the STATE shall be excess of that insurance maintained by CONTRACTOR. c. The policy shall be endorsed to waive subrogation in favor of Additional Insured parties. ii. BUSINESS AUTOMOBILE LIABILITY: Commercial Automobile Liability insurance covering all owned, leased and non -owned vehicles used in connection with the Scope with minimum limits of $5,000,000 Combined Single Limit. Insurance shall include coverage for bodily injury, death and property damage to Lease Vehicles arising out of ownership, maintenance or use of any motorized vehicle and Contractual Liability coverage, and contractual liability coverage sufficient to meet the requirements of this Lease Agreement. a. The Commercial Business Automobile policy shall be endorsed to name the STATE, its agents, officers, directors, officials, employees, volunteers as Loss Payees and Additional Insureds.( CA 20 01 10 13 or its equivalent). b. Coverage shall be primary and non-contributory as respects to any insurance held by the STATE. Any insurance or self-insurance maintained by the STATE shall be excess of that insurance maintained by CONTRACTOR. c. The policy shall be endorsed to waive subrogation in favor of Additional Insured parties. d. The policy shall be endorsed to include Motor Carrier Act endorsement -Hazardous Materials Cleanup (MSC -90), if applicable. iii. WORKERS' COMPENSATION: Worker's Compensation Insurance and Employer's Liability Insurance (including occupational disease) to cover statutory benefits and limits under the Worker's Compensation laws of any applicable jurisdiction in which the Scope 4 6/2/2015 is to be performed Employers' Liability Insurance with minimum limits of $1,000,000 Each Accident, $1,000,000 Disease Each Employee $1,000,000 Disease Policy Limit. a. Policy shall include a waiver of subrogation in favor of the STATE, its officers, directors, officials, employees, and volunteers. iv. EXCESS/UMBRELLA LIABILITY: Commercial Umbrella/Excess Liability Insurance for bodily injury and property damage liability must sit over CONTRACTOR's primary Employer's Liability, Commercial General Liability and Commercial Automobile Liability with minimum limits of $10,000,000 each occurrence and aggregate. a. All coverages and terms required under the Commercial General Liability, Automobile Liability and Employer's Liability must be included on the Excess/Umbrella Liability policy. b. CONTRACTOR's Excess/Umbrella Liability Policy shall provide liability coverage, subject to the terms and conditions of the policy, in excess of all available underlying coverage before any primary or excess coverage held by any Additional Insured. V. COMMERCIAL CRIME: CONTRACTOR shall provide Commercial Crime coverage in the amount of $5,000,000 covering employee dishonesty involving money, theft, disappearance, and destruction of money and securities. The Commercial Crime policy must be endorsed to cover Third Party Fidelity. Additionally to ensure payment to the state, the policy should include the the STATE as a Loss Payee. vi. PRIMACY OF COVERAGE: Coverage required of Contractor and subcontractor shall be primary over any insurance or self-insurance program carried by Contractor or the State. I. NO EFFECT ON SERVICE Nothing in this Agreement shall be construed to limit Local Agency's right to establish routes or services or perform any functions authorized by C.R.S. § 32-9-101, et seq. Similarly, nothing in this Agreement shall be construed to limit CDOT and Horizon's rights to determine routes or service. Lastly, nothing herein guarantees any Local Agency Service to CDOT's, Contractor's or Local Agency's passengers and fare holders. J. ASSIGNMENT Other than as specifically provided herein, the Parties agree that they will not assign or transfer any of their rights or obligations under this Agreement, including but not limited to the License granted herein, without first obtaining the written consent of the other Parties. K. NO THIRD PARTY BENEFICIARY The Parties expressly agree that enforcement of the terms and conditions of this Agreement, including but not limited to the License granted herein, and all rights of action relating to such enforcement, shall be strictly reserved to the Parties, and nothing contained in this Agreement shall give or allow any such claim or right of action by any other or third person on such Agreements, including but not limited to subcontractors, subconsultants, and suppliers. The Parties expressly intend that any person other than the Parties who receives funding, services or benefits under this Agreement shall be deemed to be an incidental beneficiary only. 6/2/2015 L. LEGAL AUTHORITY Local Agency, Contractor and CDOT represent or warrant to each other that they have all necessary legal authority to enter into this Agreement and to perform their obligations hereunder and that this Agreement does not conflict with any other agreement that each Party is subject or to which it may be bound. The person signing and executing this Agreement on behalf of each Party represents that he/she has been fully executing this Agreement and to validly and legally bind a Party to all the terms, performances and provisions herein set forth. The Parties shall have the right, at their option, to either temporarily suspend or permanently terminate this Agreement, if there is a dispute as to the legal authority of the other Parties or the persons signing the Agreement to enter into this Agreement. None of the Parties shall be obligated to perform any of the provisions of this Agreement after it has suspended or terminated this Agreement as provided in this paragraph. M. AMENDMENTS This Agreement may be modified or amended only by a written document duly executed by both Parties. N. PRIOR AMENDMENTS The terms and provisions of this Agreement, including but not limited to the Recitals above, the Exhibits incorporated by reference herein, and the License granted herein, represent the entire understanding of the Parties with respect to the subject matter of this Agreement, and merge, incorporate and supersede all prior communications between CDOT, Contractor and the Local Agency concerning that subject. No representations or warranties are made by CDOT or Local Agency except as herein set forth. O. CONFLICT OF INTEREST No officer, member, or employee of each Party and no members of a governing body, and no other public official or employee of the governing body of the locality or localities included within Local Agency, during his or her tenure or for one year thereafter, shall have any interest, direct or indirect, in this Agreement or the proceeds thereof. P. WAIVER AND BREACH The waiver of any breach of a term hereof shall not be construed as a waiver of any other term, or the same term upon subsequent breach. Q. GOVERNING LAW Each and every term, provision, condition, of this Agreement is subject to the provision of Colorado law. This Agreement is subject to such modifications as may be required by changes in Colorado or federal law, or their implementing regulations. Any such required modification shall automatically be incorporated into and be part of this Agreement on the effective date of such change as if fully set forth herein. R. SEVERABILITY 0 6/2/2015 The Parties expressly agree that if any part, term, or provision of this Agreement is by the courts held to be illegal or in conflict with any state or federal law, rule, or regulation, the validity of the remaining portions or provisions shall be affected, and the rights and obligations of the Parties shall be construed and enforced as if the Agreement did not contain the particular part, term, or provision held to be invalid. 7 6/2/2015 SIGNATURE PAGE (A. -C.) THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT * Persons signing for The Local Agency hereby swear and affirm that they are authorized to act on The Local Agency's behalf and acknowledge that the State is relying on their representations to that effect. A. Print: Title: Date: THE LOCAL AGENCY THE LOCAL AGENCY Town of Vail Town of Vail 2°d Signature if Required *Signature Print: Title: Date: *Signature 6/2/2015 Ace Express Coaches, LLC Ace Express Coaches, LLC 2"d Signature if Required Print: Print: Title: Title: *Signature *Signature Date: Date: 6/2/2015 A STATE OF COLORADO John W. Hickenlooper, GOVERNOR Colorado Department of Transportation Shailen P. Bhatt, Executive Director By: Joshua Laipply, P.E., Chief Engineer Date: 10 IM LEGAL REVIEW Cynthia H. Coffman, Attorney General Signature - Assistant Attorney General Date: 6/2/2015 EXHIBIT A Vail Transit Center — 72 S. Frontage Rd., Vail, CO 81657 Dispatch#: Aerial View Ground View Exhibit A - Page 1 of I 6/2/2015 EXHIBIT B - Schedule 701 Glenwood Springs (South Glenwood BRT Sta.) 7:05 AM Glenwood Springs(West Glenwood Park Et Ride) 7:15 AM Eagle (Chambers Park Ft Ride) 7:50 AM Vail (Vail Transportation Center)Arr 8:20 AM Vail (Vail Transportation Center)DEP 8:25 AM Frisco (Frisco Transfer Center) Arrive 8:55 AM Frisco (Frisco Transfer Center)Depart 8:55 AM Lakewood - Denver Federal Center 10:05 AM Denver Union Station ARR 10:20 AM Denver Union Station DEP 10:25 AM Denver Bus Center 10:35 AM 700 Denver Bus Center Denver Union Sation Arr 6:20 PM Denver Union Station Depart 7:35 PM Lakewood - Denver Federal Center 7:35 PM Frisco Arr 8:05 PM Frisco Depart 8:10 PM Vail Arrive 8:40 PM Vail Depart 9:20 PM Eagle 9:30 PM Glenwood Springs(West Glenwood Park Ft Ride) 9:30 PM Glenwood Springs (South Glenwood BRT Sta.) 9:30 PM Exhibit B — Page I of I 6/2/2015 EXHIBIT C — Sample Change Letter [Date] [Local Agency Name] [Local Agency Contact] [Local Agency Address] Change Letter #: Project #: Original Routing # and Current Routing #: Subject: To notify of change to Bustang Bus Schedule at [Park and Ride Name or Transit Station Name] Dear Ms./Mr. This is with regard to the contract signed between [Local Agency Name] and Ace Express Coaches, LLC ("Ace Express") and the State of Colorado acting by and through the Colorado Department of Transportation ("CDOT") executed on [date of execution] with regard to the Bustang Bus Service Access to Local Agency's [Park and Ride Name or Transit Station Name]. In accordance with Section C. 4 of the original Access Agreement, CDOT and Ace Express are modifying the Bustang bus schedule as shown in the attached schedule. The modified schedule is effective on [Date] and will remain in effect for the Term of the Access Agreement or until modified by a future Change Letter. Should [Local Agency Name] disagree with the schedule changes provided by CDOT and Ace Express, [Local Agency] should contact the CDOT contact listed under Section 4, Notices, within 10 days of the date of this Change Letter. Thank you, DTR Director Exhibit C — Page 1 of 1 6/2/2015 0 rowN of vain Memorandum To: Vail Town Council From: George Ruther, Director of Community Development Date: June 2, 2015 Subject: Consent Agenda — Chamonix Parcel Contract Award for Site Design and Architectural Services I. PURPOSE The purpose of this memo is to present the Chamonix Parcel Contract Award for Site Design and Architectural Services and request consent approval of Resolution No. 16, Series of 2015. 359 DESIGN Team and its Project Manager, Will Hentschel, has submitted a proposal for site design and architectural services for the Chamonix Parcel located in West Vail. The purpose of the proposal is to achieve the Town's goals of developing a successful deed -restricted, for sale, workforce housing development focusing on families of wide income levels on the Chamonix Parcel. The Town staff is recommending the Vail Town Council consent approves Resolution No. 16, Series, a resolution authorizing the town manager to sign a scope of professional services agreement to between the Town of Vail and 359 DESIGN in a form substantially the same as noted in Exhibit A of the Resolution. If approved, this resolution accomplishes four objectives: 1.) furthers the goals and objectives affirmed by the Vail Town Council for future residential development on the Chamonix Parcel, 2.) allows for the first phase of design work (i.e., site access and infrastructure) to begin on the Chamonix Parcel to begin immediately with first phase construction set to begin this fall, 3.) facilitates the implementation of the recommendations prescribed in the 2011 Chamonix Master Plan and as generally depicted on the 2015 Concept Plans, 4.) furthers the community's goal of developing Vail's newest residential neighborhood for families on the Chamonix Parcel. This agenda item affects and impacts the following 2014 Areas of Focus of the Vail Town Council: Enhance Economic Vitality Elevates the Quality of the Experience 6/2/2015 • Grow a Balanced Community II. BACKGROUND The Town of Vail has ben working closely with 359 DESIGN for more than a year on a conceptual site and architectural design for future development on the Chamonix Parcel. All the design work completed to date has been in keeping with the recommendations of the 2011 Chamonix Master Plan and the direction provided by the Town Council up to this point. 359 Design has submitted a proposal for site design and architectural services for the Chamonix Parcel located in West Vail. 359 DESIGN has teamed with the following qualified consultants in submitting the proposal, • Monroe & Newell Engineering, Avon, Colorado ( structural engineering) • Martin/Martin, Edwards, Colorado (civil engineering) • Outside LA, Steamboat Springs, Colorado (landscape architecture) • AEC, Avon, Colorado (mechanical, electrical, plumbing engineering) A copy of the proposal, scope of work, fee schedule and project schedule has been provided in Exhibit A of the attached Resolution. In summary, the proposal provides for the following: • +/- 100,000 square of GRFA in up to +/- 77 dwellings of up to three general building types (single-family/duplex, townhouse, multiple family. • A two step design process: 1) site access and infrastructure, 2) building design • Coordination and selection of consulting design services of structural engineering, mechanical engineering, civil engineering, landscape architecture, specialty consultants, life safety, etc. • Full architectural services from concept design through project completion. • 359 DESIGN professional fee of $294,860 and consultant's fees of $330,685, plus estimated reimburseable expenses of 7% and 5% respectfully. (+/-$8,600 per unit) • Prospective buyer meeting presentations. • Public hearing meetings and presentations. • Project deliverables including, concept, schematic, design development, construction documents and drawings, reports, surveys, floor plans, finish documents, unit interiors, permit sets, etc. • A phased approach to development on the Chamonix Parcel. III. RECOMMENDATION The Community Development Department recommends the Vail Town Council consent approves Resolution No. 16, Series, a resolution authorizing the town manager to sign a scope of professional services agreement between the Town of Vail and 359 DESIGN, and setting forth details in regard thereto. The staff recommendation is based upon the following considerations: Town of Vail Page 2 6/2/2015 • 359 DESIGN is experienced and uniquely qualified to complete the scope of work being requested to achieve the community's goals for development on the Chamonix Parcel. • 359 DESIGN has a successful track record with affordable housing projects and demonstrated the ability to work productively with the Town of Vail as their client. • The final services agreement and scope of professional services exhibits shall be reviewed as to form by the Town Attorney, prior to execution. • The total professional fee is approximately <2% of the estimated total project budget (assumed project budget of $34M - $36M) • The two step project approach allows the Town to break ground on the initial phase of site access and utility construction in the Fall of 2015. • The services agreement allows the Town to stop work on the project at any time, at its convenience and without penalty. • The consultant team that been assembled is well qualified and has an extensive amount of experience working on projects within the Town of Vail. Town of Vail Page 3 6/2/2015 RESOLUTION NO. 16 Series of 2015 ARESOLUTION AUTHORIZING THE TOWN MANAGER TO SIGN A SCOPE OF PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF VAIL AND 359 DESIGN; 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 Council has adopted a Council Action Plan 2014-2016 (the "Action Plan") to ensure Vail is the premier international mountain resort community; WHEREAS, the Action Plan identifies three areas of focus... enhance economic vitality, grow a balanced community, and elevate the quality of the experience; WHEREAS, the 2011 Chamonix Master Plan, and the Council's interest to development Vail's newest residential neighborhood for families on the Chamonix site located in West Vail, furthers each of the three areas of focus identified in the Action Plan; WHEREAS, the Town has selected 359 DESIGN to provide a scope of design and architectural services necessary to facilitate the development of Vail's newest residential neighborhood for families on the Chamonix site; and WHEREAS, the Council wishes to authorize the Vail Town Manager to execute a scope of professional services agreement with 359 DESIGN for work on the Chamonix site. 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 a scope of professional services agreement with 359 DESIGN on behalf of the Town in substantially the same form as attached hereto as Exhibit A and in a form approved by the Town Attorney. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 2nd day of June, 2015. Andrew P. Daly Town Mayor Resolution No. 16, Series of 2015 6/2/2015 ATTEST: Patty McKenny Town Clerk EXHIBIT A Resolution No. 16, Series of 2015 6/2/2015 359 oEsicN May 29, 2015 George Ruther Town of Vail 111 S Frontage Road Vail, CO 81657 970-479-2145 Gruther@vailgov.com Re: Chamonix Parcel, Vail, CO Proposal for Architectural Services Dear George Thank you for allowing us to propose the services of 359 DESIGN to you. We greatly appreciate the opportunity to respond to your request. We feel that our team is uniquely qualified to serve in the role of Architect for the Community and Permanent Residential nature of this project. We are uniquely positioned to lead the design team to an Access Infrastructure implementation in the fall of 2015 and evolve from the currently designed Concept Stage of this project. As evidenced in our graphic proposal, we have had the opportunity to work with the Town of Vail in envisioning and initially presenting this project to Town Council. We are students and current designers of all forms of multi -family housing. The diverse nature of this project suits our skill sets well. We feel that incredible efficiency can be realized by utilizing a team that is innately aware of all of the design decisions leading to this point of the design and the current market trends. This proposal is intended to give you an idea how we see the components coming together to give you forward momentum on the project. SCOPE OF THE PROJECT Chamonix, in its current state, was designed from November 2014 to April 2015. Previous to this stage was a masterplan with the Fire Station and envisioned in 2011. The site design includes 80,000 — 100,000 sq ft of net sellable area, with up to 75 units in 3 building types. The exterior character of the design is Vail Contextual. The landscape design include integration with TOV Parks with trails and open space for the residents and guests. The site and buildings will not be LEED Certified, however the design will be balanced against best sustainable practices. Building design drawings and entitlements will take into account the current town of Vail Land Use Code, 2015 IBC and compliance with DRB & PEC requirements. The finishes and minimal amenities are targeted at a mid for -sale deed restricted residential market through the Town of Vail Housing Program. It is envisioned that 359 will work with the Town on all Council presentations, community outreach & applicant sign-up process. This is envisioned as a two stage process of Access Infrastructure and Building Design both with public outreach and entitlements. For the design review and standards satisfaction, 359 DESIGN will manage all consultants through design & construction administration. The design of the Residential buildings will include interior configuration utilizing the initial Concept Design that will evolve to current residential standards as a base to exterior finishes inclusive of Structural Systems, MEP, Civil and Landscape Design. It is contemplated that fire suppression and low voltage 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN are design -build and are parallel with the mid-level Residential Product. These systems will evolve through the course of the design process. 359 Design suggests that this contract serves as an exhibit to AIA B101-2007, Standard Form of Agreement between Owner and Architect. Articles 2, 3, 4 & 5 will serve as a guide to specify Responsibilities of the Architect, Scope of Services, Additional Services and Owners Responsibilities as well as other specific details in relation to the agreement between Owner and Architect. If the owner decides not to use the AIA B101-2007 agreement, 359 requests that the Owner and Architect utilize language from articles 2,3 & 5 as a guide to Architects Responsibilities, Scope of Services and Owner Responsibilities. SCOPE OF ARCHITECTURAL SERVI 359 DESIGN will provide architectural services including the coordination of consulting design services of Structural Engineering, Mechanical, Electrical and Plumbing (MEP) Engineering, Civil Engineering, Landscape Architecture & Initial Life Safety as required for permit submittal by the Town of Vail and Construction of a mid to high level Residential Product. We will also coordinate the Landscape Architecture and Specialty Consultants (Acoustics, Specifications & Waterproof) for the architectural components of the overall development. We have a well -seasoned interiors group on staff that will envision and design the base finish package for your project and can envision seamless additional option schemes. We will work and coordinate with any owner contracted consultants during the design and documentation process and incorporate the required work into the submittals required by Vail Public Works, Vail Fire Department and Vail Building Department reviews. We have followed the parameters of the Town of Vail Building Application Checklist as stated at http://www.vailgov.com/docs/dl_forms/Commercial_Building_Permit_090114.pdf 359 DESIGN's proposal includes a full service approach (including integration of future consultants) of evolving the current and previously contemplated Concept Design drawings through Construction Documents and Construction Administration within the expectations communicated in this proposal and verbal conversations. Further, we will participate in and facilitate entitlements, public outreach and assist in delivery structure planning and project sales/outreach. Our intent is to be an effective, integral component of the project team and to respond to the needs of the Town of Vail throughout the duration of the project. We have included all necessary interfaces with the Client as well as Client -retained consultants and vendors. We have also included a robust public outreach during the first and second phases of the project to first gain approval for the Access Infrastructure portion of the design (for access points, initial density range and site deployment). Next we will go to the public for input on the product, followed by DRB approval for the individual parcels. For the purposes of this proposal, we have assumed that the General Contractor will be involved during the permit process and the design team will have access to that Contractor as a resource during design activities. We understand that the affordability, livability, construction, marketing and pre -sales are of utmost importance on this project. By utilizing previous activities on this project and our experience in current multi -family, townhome and duplex projects of a similar price point, precise preplanning and efficiency opportunities that will make the project more affordable on the construction costs and constructability. We will look forward to opportunities through the pre -entitlement phases of this project share the ideas. 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN In reference to schedule, design stage completion and responsibilities of the architect, Scope of Services and Owner Responsibilities, 359 Design and the Town of Vail, will be guided by Articles 2, 3 & 5 of the AIA 13101- 2007, Standard Form of Agreement between Owner and Architect. WORK PLAN The work plan outlined below suggests a roadmap for services per phase. The architect will review each phase with the owner to determine the deliverables based on owner approved completion from the previous phases. Durations outlined below suggest a time period for the completion of phases that is comparable to projects of this character and scale. It will be the architect's responsibility to confirm these durations with the owner at the onset of the stage, to monitor progress thru the duration and advise the owner on any deviations. Additional fee required as a result of any deviations must be approved by the owner or the owner's agent. Public Meetings per Phase 1 & 2 can be shifted within from each design phase Our proposed Work Plan, is generally described as PHASE 1— ACCESS INFRASTRUCTURE Anticipated Public Meeting Range (outlined below & included in Exhibit A, Fee Matrix) Town Council — 5 meetings Public Worksessions - 3 meetings PEC/DRB — 4 meetings *** Meetings outside of this range will be billed per the ExhibitA Fee matrix. Concept Design Phase 1 Al Project Background and initial Formation. Duration: 4 weeks Goals: Provide facts and options for the development to take shape, determine the Scope of the Access Infrastructure and establish density ranges for the project, Establish Baseline Cost information on Trending, Narrow Site Options to a working option Process: Outreach: Fact finding. Discuss initial options with Council and the public, Determine level of Density, Establish and initially test project goals, Discuss Funding Mechanisms and Structure Design: Establish Parameters, Design Site Options, Formulate ideal floor plan options, Assemble Unit Plan options Public Meetings: 1 council, 1 work session Deliverables: Concept Site Plan, Schematic Grading, Unit Counts, Parking Counts, Character Sketches 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN Schematic Design Phase 1 -AI - Civil work provided by the Civil Engineer Project Vetting and Initial Entitlement Application. 359 Design will lead the outreach and design process and facilitate the evolution of the site planning and engineering in response to design constraints, council direction, project reality and public input. Duration: 8 weeks Goals: Narrow Site Options to a working option, Site options and Project Approach are tested in public, Reality begins to arrive in the options, Narrow Parameters of Project costs, Validation in Design via Cost and Public Initial Public Acceptance, Submit for PEC, Site Design to be evaluated by public commissions, boards and councils Process: Outreach: Finalize Project Goals, Validate Site Design Options through outreach to Council and Public, Introduce Parks Concept to the Public, PEC and Entitlement Process Design: Finalize Parameters, Finalize and Validate Site Options, Evolve Engineering, grading and Utility Planning Public Meetings: 1 council, 1 work sessions, Joint DRB/PEC Check-in, 2 PEC Meetings Deliverables: PECApplication, Site Design Drawings, initial Engineering for Al —Civil Drawings and Calculations done by Civil Engineer under a separate contract, Coordinated by 359 Design Entitlements Process 1— Access Infrastructure The project will proceed through the various meetings, gaining shape, validity and confidence as it evolves. The Town of Vail process has a good way of refining the designs. We anticipate this process to be full of scrutiny. We will harvest the input and further evolve the community shaped design. Itis anticipated that this a PEC process of defining development parcels with allowed density limits on the parcels, defining road locations, site entry portals, site open space and park sizes. Approval of these definitions by the PEC will allow the Civil Engineer to move to construction documents and will pave the way for the design team to complete a concept design phase prior to full public outreach for the individual building product parcels. Public Meetings: 2 PEC meetings Civil Engineering Phase 1 -AI Access Infrastructure Engineering for Permit Submittal Duration: 6 weeks 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN Goals: Develop the Site options into working and engineered Civil Designs, Site design and building footprints are finalized, Project Cost is revealed and facilitated Process: Outreach: The last of the public outreach will occur to roll out the final approved design before council votes and full/engineering permitting and construction Design: Analyze Site for efficiency and build ability, Finalize plan, Coordinate the validated design with building pad heights and contemplated mass size, Engineer Utility Designs, Engineer Road Design, Final grading of Roads and Utility Stubs, Over lot grading for parcels and park. Public Meetings: 1 council, 1 work sessions Permitting During the Permit drawing review phase, 359 Design will attend any regulatory meetings required. We lead the process and work with the civil engineer to ensure a smooth process and timely approvals. We anticipate 2 rounds of permit comments and responses. Following the last round of comments from the Building Department, the Civil Team will produce 100% Construction Documents (following Owner and 95% Construction Document Review). We have reviewed the Town of Vail permitting and planning process located at http://www.vailgov.com/docs/dl forms/Commercial Building Permit 090114.pdf . We agree that our scope can cover items typically requested by the Design Team. Not included in our scope: • Traffic Engineers Report • Energy Code Compliance (if Option 2 or greater is selected for the Mechanical Engineer Scope) • Soils Report • Signed Special Inspection and Testing Agreement • Permit Fees • Site Survey Information Construction Administration — Phase 1 - Al 359 Design will lead and provide full Construction administration for the Access Infrastructure. We will also administer the services of all consultants under our contract. Our Construction Administration services include up to 3x monthly in-person construction meetings with weekly owner/architect/contractor Meetings (1x a week via phone), submittal reviews and documentation of normal design clarifications and minor contract modifications. This phase includes all disciplines within the design team (though consultants to 359 will be on site significantly less). We have assumed a 12 -month construction schedule in a single phase. Additional site visits may be provided as requested by the Client or as construction phasing requires. 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN PHASE 2— Parcel, Buildings and Common Design Anticipated Public Meeting Range (outlined below & included in Exhibit A, Fee Matrix) Town Council — 6 meetings Public Worksessions - 8 meetings, plus 4 community picnics PEC/DRB — 5 meetings *** Meetings outside of this range will be billed per the ExhibitA Fee matrix. Concept Design Phase 2 — Parcel & Building Design Project Background. 359 Design will lead the client consultant through the selected vetting initial Designs. Collectively, we will sort out the individual parcel options, vet the designs with the client and public. We will focus on the crucial components of making the project successful in a Holistic approach. Design, efficiency, product delivery and public needs. Duration: 8 weeks Goals: Provide facts and options for the character of the development to take shape, confirm the level of public outreach. Work with the client and council to determine what is most crucial in the building design and unit planning. Develop a pallet of parts that work within the design. Eliminate what does not work. Process: Outreach: Fact finding. Discuss initial building options with Council and the public. Identify delivery schedule. Discuss Funding Mechanisms and Structure Design: Establish Parameters, Design Site Options, Determine level of units, unit sizes, finish levels and amenities that are most important. Assemble amenity and package. Public Meetings: 2 council, 2 stake holder work session Deliverables: Concept Building plans, Schematic Grading, Unit plans, Amenity levels and products, park designs, Character Sketches Schematic Design Phase 2 — Parcel & Building Design Project Vetting and Initial Entitlement Application. 359 Design will lead the outreach and design process and facilitate the evolution of the individual site/parcel planning and engineering in response to design constraints, council direction, project reality and public input. Note -Civil Engineering will be under the civil contract separate from the 359 Design Contract 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN Duration: 8 weeks Goals: Begin to focus in on the individual site/parcel options. We will work through bulk and mass and study the building plans as they relate to what we have learned from council on density and from the public/market on unit sizes and amenities. The exterior designs of the buildings will begin to take shape. Architectural in-between spaces have identity. We will continue with the design concepts and test it in the public realm. This phase will include a fair amount of public outreach and stakeholder meetings. We will walk out of this stage with solid direction on where we take the design. Process: Outreach: Public outreach to confirm density/unit counts, to hear from stakeholders on what will make this project a success. Work through 2-3 design evolutions with the public Design: Fit out sites/parcels per council direction, site design realities and TOV design/planning guidelines. Develop initial project manual. Public Meetings: 1 council, 3 work sessions, 3-4 Community picnics and 3-4 Farmer's Markets Deliverables: Evolved bulk and mass, sections, project criteria is defined, design vocabulary, interior exterior spaces, site coverage and decks, Energy and Utility narrative. Once the Concept Design has been validated or evolved based on the ideal program, unit sizes, looks and highest design efficiency, the preparation of Schematic Design Documents will resume. The purpose of this stage is to communicate the established program and design intent for the units, residential buildings, site circulation and configuration, landscape design, and street front interface. This milestone includes Civil Engineering Plans for the individual parcels (Grading, Utility and Drainage), Architectural Site Plan, Landscape Plan, Floor Plans, Units Plans, Building Elevations, Building Sections, Preliminary Details and a Project Narrative / Outline Specification for the residential buildings. Design Development & Entitlements Phase 2 — Parcel & Building Design An evolution from rough to technical form. A full entitlement application will be made and the DRB process for each parcel will occur. Public outreach will move from input to information on project evolution. Pre -Sales will take an evolved tone.. 359 Design will facilitate the design team through the process of evolution to the technical aspects. All approved designs and modifications from the first cost modeling exercise or items not fully documented in Schematic Design are inputted into the computer in Revit format allowing the most accurate and detailed drawings available. We will meet with you and collect your ideas, comments, requirements and requests from each meeting, which will direct the development of the design with the design team and all consultants. Note -Civil Engineering will be under the civil contract separate from the 359 Design Contract. Duration: 2-4 months (depending on Entitlements) 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN Goals: Develop Schematic ideas into a constructible form. Confirm technical aspects and technical ability of the designs. Attain project entitlements. Provide materials for project pre -sales Process: Outreach: Confirm Design approach, formally apply for DRB, Open House for information purposes on design evolution, Meetings following entitlements for Council Approval. Educate on product for Pre -Sales. Design: Define and validate — Building systems, Unit Furnishings, Details. Finalize - Design, Bulk/Mass, and Density. Zone in on an educated cost model. Public Meetings: 2 Council Meetings, 1 open house, Joint DRB/PEC Check-in, 3 DRB Meetings, 2 Sales information sessions Deliverables: All site features, decks, drives, walks, gardens and landscaping, Overall Floor Plans for all Levels, All Unit Plans with Kitchen design, flooring, appliances and storage requirements, All exterior elevations, All interior Elevations of Kitchens and Bathroom, Bath designs and fixtures. Schedules: Door and window sizes, manufacturers and types. Reflected Ceiling Plans with Ceiling heights and details. Roof Plan with Roof design and materials. Finishes - Wall finishes and details, flooring materials. Overall Sections at all critical positions within the building. Wall Sections at all critical locations. Detailed stair Plans and Sections with Stairways and railings. Wall Details, Roof, Deck and Floor Details, Initial Miscellaneous Details. By others - Structural Framing Plans, Evolved Details and Sections, Mechanical equipment requirements, locations and zoning, Storm protection (if required),3D hand sketches of special features. The time this phase takes is contingent upon the length of entitlements and the client's ability to make decisions in a timely manner. All levels of details are discussed until we achieve the desired results. At the completion of Design Development, all items that we have been aware of with major cost impacts will be documented. Most products will be specified at this point, though particular model numbers or colors may still not be selected. Construction Documents Phase 2 — Parcel & Buildi Duration: 2-3 months Process: Public Meetings: 1 Council Meeting to present Cost model. Public Information Session 50% Construction Documents. All approved designs and modifications from the first cost modeling exercise or items not fully documented in Design Development are inputted into the computer in Revit format allowing the most accurate and detailed drawings available. We will meet with you and collect your ideas, comments, requirements and requests from each meeting, which will direct the development of the design with the design team and all consultants. The time this phase takes is contingent upon the client's ability to make decisions in a timely manner. All levels of details are discussed until we achieve the desired results. At the completion of 50% Construction 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN Documents, all items that we have been aware of with major cost impacts will be documented. Most products will be specified at this point, though particular model numbers or colors may still not be selected. Deliverables: All site features, decks, drives, walks, gardens and landscaping. Overall Floor Plans for all Levels. All Unit Plans with Kitchen design, flooring, appliances and storage requirements. All exterior elevations. All interior Elevations of Kitchens and Bathrooms. Bath designs and fixtures. Schedules: Door and window sizes, manufacturers and types. Reflected Ceiling Plans with Ceiling heights and details. Roof Plan with Roof design, materials and roof access. Outline Finishes - Wall finishes and details, flooring materials. For Interior Overall Sections at all critical positions within the buildings. Wall Sections at all critical locations. Stair Plans and Sections with Stairways and railings. Wall Details, Roof, Deck and Floor Details. Initial Miscellaneous Details Consultants - Structural Framing Plans, Evolved Details and Sections. Mechanical equipment requirements, locations and zoning. 3D hand sketches of special features. Preparation of the 95% Construction Documents / Permit Set for the architectural and landscape architectural components of the site plan & the residential buildings based upon the approved 50 % Construction Documents and Specifications. This milestone includes all disciplines within the design team and will incorporate drawings, narratives and/or specifications as determined to be necessary for permit. The final documents being ready for the Owner and Selected Contractor to start permitting and at the approval of the Flag, construction. Deliverables: Evolution of all documents completed within 50% Construction Documents. All Detailing required for Permitting. Roof plans, Sections and Details. Consultants - Site retaining details. Foundation design (pilings if required by soil testing). Foundation schedule. Structural slab design. Steel schedule (as needed). Roof truss plan — girder truss (downloads). Beam schedule (as needed). Roof strapping plan (uplifts). Strapping schedule. Connections and details. Truss to structure connections. Truss to truss connections (by a truss company). Final Mechanical, Electrical and Plumbing Drawings done on architect's backgrounds noting: A/C duct layouts. Supply and returns, duct sizes Equipment location, size and specifications. Heat load calculations to size units due to amount of windows and orientation. Energy code calculations to size efficiency of units. Electrical load requirements to coordinate with electrical calculations. Drip line drainage. Mechanical Unit installation connections. Refrigerant lines. Electric Panel schedule. Electrical Distribution Closets. Electronic riser and notes. Circuited electric plan. Generator distribution plan if requested. Coordination with appliance schedule. Coordination with electrical fixture schedule. Coordination with mechanical schedule. Solar photovoltaic panels and engineering (if used). Plumbing Schedules. Plumbing and drainage diagrams Bid Process Phase 2 — Parcel & Building Design Duration: 6 weeks With the client, 359 Design (and select members of our consultant team) will attend the pre-bid conference, answer questions during the bid period, & produce additional information as needed. We will review all bids for inclusions and exclusions. We will verify that scope is covered. As needed we will sit in on interviews as needed and work with the client to procure the contractor. Permitting Process Phase 2 — Parcel & Building Design- Civil work provided by the Civil Engineer 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN Duration: 6 weeks During the Permit drawing review phase, 359 Design will attend any regulatory meetings required. We anticipate 2 rounds of permit comments and responses. In addition, during this time, we will work with the consultants to refine interior elements of the design and construction detailing that does not affect the permit review or significantly affect the price. Following the last round of comments from the Building Department, our design team will produce 100% Construction Documents (following Owner and owners representative 95% Construction Document Review). We have reviewed the Town of Vail permitting and planning process located at http://www.vailgov.com/docs/dl forms/Commercial Building Permit 090114.pdf. . We agree that our scope can cover items typically requested by the Design Team. Not included in our scope: Traffic Engineers Report, Energy Code Compliance (if Option 2 or greater is selected for the Mechanical Engineer Scope), Soils Report, Signed Special Inspection and Testing Agreement, Permit Fees, Site Survey Information Construction Administration Phase 2 — Parcel & BuildinE Desien Duration: 24 months 359 Design will provide full Construction Administration for the build -out of the project. We will also administer the services of all consultants under our contract. Our Construction Administration services include up to 3x monthly in-person construction meetings with weekly owner/architect/contractor Meetings (1x a week via phone), submittal reviews and documentation of normal design clarifications and minor contract modifications. This phase includes all disciplines within the design team (though consultants to 359 will be on site significantly less). We have assumed a 24 month construction schedule in a single phase. Additional site visits may be provided as requested by the Client or as construction phasing requires. 1. Value Added A. Renderings & Illustrations; 359 DESIGN has the incredible ability to visually represent projects in many graphic forms. 359 DESIGN will develop a 3D digital model of the project development and evolve up to two illustrative renderings for use by the Client. Multiple views of the model are available in this scope without rendering techniques applied. Additional fully rendered views will be at an additional fee. Any detailed renderings and marketing packages will be performed with prior ownership approval at hourly rates. 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN DESIGN TEAM 359 DESIGN is proposing a design team that has been assembled to directly respond to the residential townhome nature of the project. The selected Design Team represents significant experience with this project type and similar locales. All team members parallel our approach to a vetted solution. Our project Criteria Designs are not recycled, rather this is approached individually per specific project. Project Manager Will Hentschel, Manager Director of Design & Project Manager Project Architect Alastair Huber Project Architect Project Designer & Interior Architect Lindsay Brown Project Intern, Graphics and Renderings Joe Coleman Interior Designer Emily Conley Consultants Structural Engineering Monroe and Newell Engineering, Avon, CO Civil Engineering Martin and Martin, Edwards, CO Will leads the team's efforts and will be serving as the client's point of contact throughout the project and as project manager managing the technical documentation & construction administration. He will also lead the residential creative process and evolve the current design solutions. Alastair will serve as project architect dictating and drawing the technical documentation of the residential components. Alastair will also be the architect of record. Lindsay will serve interpret, then lead the residential creative process into the built form. Lindsay will also be responsible for Interior Detailing and Character. Joe is responsible for all Project Visualization. He has designed the hardware and software systems for 359 Design that convey the highest level of visualization within today's market. Joe is also a Millworker and will be responsible for all Millwork Packages Emily is responsible for all Interior Finishes and exterior Color. Emily has a long history with Resort Climate interiors. She understands the importance of marketability and efficiency. Structural Engineering for building elements and site improvements. M&N will work with wood supplier and steel consultants on the building structure. M&N is a Townhome specialist in Snow related climates Site Documentation and incorporation with Town Engineering. Coordination with all consultants. M&N Civil Experience is specific to Alpine Climates and Drainage. They are based on Edwards, CO Landscape Site Landscape Design, Site Detailing, Landscape counts and instructions. Outside LA, Steamboat, CO Coordination with all consultants. Sandi is based out of Steamboat Springs and does 60% of her work west of the Continental Divide 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN MEP Engineering Living Comfort and Performance Engineering for building elements and AEC, Avon, CO site improvements. Coordination with all consultants. AEC - MEP provides the most vetted approach to Mechanical that we have experienced in 25 years Miscellaneous Engineering Acoustic Engineering & Waterproof/Snow Management EXCLUSIONS / CLARIFICATIONS 1. Other Client provided consultants, such as legal services and associated surveying, geotechnical engineering, environmental analysis, Wetlands Studies (and associated work), environmental graphics, communications, dry utilities, fire suppression and specialty lighting are excluded. We have included coordination with these consultants if the schedule of their work coincides with ours. 2. All work will be done per Town of Vail, Eagle County and IBC building codes that are applicable at the time of permitting. 3. Final Consultants Team (excluding Civil under a separate contract) will be the result of a competitive bid. Prior to the bid process, consultants listed above may work hourly to provide background to evolve the architectural and civil nature of this building. Any fees contemplated above and beyond the scoped architectural few will first be approved by the Town of Vail. 359 includes coordination of the consultant team within our fee. 4. The drawing backgrounds for Schematic Design will be a result of Concept Designs Dated February 17, 2015. 5. The below fee for residential program should be considered a final fee based on the current contemplated design. Any modification in unit numbers or substantial modification in sizes (beyond 30% increase or decrease), will alter the fee through Contract Addendums. 6. Scope does not include residential market studies or third party surveys / questionnaires. 7. Scope does not include residential marketing graphic packages for sales purposes. 8. The design of specialized systems, including but not limited to; solar, signage, communications/data systems, security systems, sound systems and low voltage systems are not included, however coordination with these vendors/suppliers has been included. 9. Interior Design and Interior Specifications / Schedules beyond the base option of a predetermined finish level. 10. We have assumed that the General Contractor, as is typical in this market, will provide any Fire Alarm and Fire Sprinkler system(s) on a Design/Build basis from the performance specifications produced as a component of the Construction Documents. 11. Scope of work does not include construction cost estimating by the architectural teams; but we have included assistance during the selected Contractor's efforts in budgeting/estimating. Scope does not include Client provided independent materials testing or third party construction inspection. 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 DESIGN FEE Phase 1 - Access Infrastructure Base Proposal for Permit Documents and 100% Const. Documents (4.5 months + Permit time) ■ Architecture, Interiors, Civil Engineering, Mechanical Electrical and Plumbing, $ 108,085 Structural Engineering, Landscape Design, Specialty Consultants (Waterproof, Acoustics & Specifications) Phase 2 — Parcel & Buildine Desien Base Proposal for Permit Documents and 100% Const. Documents (10 months + Permit time) ■ Architecture, Interiors, Civil Engineering, Mechanical Electrical and Plumbing, $ 380,520 Structural Engineering, Landscape Design, Specialty Consultants (Waterproof, Acoustics & Specifications) ■ Public Meetings $ 20,300 Construction Administration (30 months, 2 phases) — Estimated on Duration (optional) ■ Phase 1 - Architecture, Interiors, Civil Engineering, Mechanical Electrical and Plumbing, $ 8,500 Structural Engineering, Landscape Design, Specialty Consultants (Waterproof, Acoustics & Specifications) ■ Phase 2 - Architecture, Interiors, Civil Engineering, Mechanical Electrical and Plumbing, $ 108,140 Structural Engineering, Landscape Design, Specialty Consultants (Waterproof, Acoustics & Specifications) VALUE ADDED SERVICES (see attached fee matrix (Exhibit A) for a full breakdown of fee estimates) Interior Options beyond the "Base Option" $ 15,000 Full Marketing Material s (For Sales) — Includes Full Virtual 3D Model, Interior and Exterior for 7 Unit $ 28,000 Types, Floor Plans and Graphic Layout Public Meetings (Beyond 26 specified) $ 4,500 each PEC/DRB Meetings (Beyond 9 specified) $ 3,500 each Reimbursable expenses directly attributable to work performed for this project includes, but is not limited to, items such as travel, printing, long distance phone/fax calls, presentation materials, CAD plots, mail and delivery charges, and will be billed at cost plus three percent. 359 will add 3% to all consultant fees consultant fees for administration. 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN TERMS AND CONDITIONS • The enclosed Work Plan identifies the anticipated sequence of services. • A Lien waiver will be executed with all payments from The Town of Vail and 359 Design. • Once contracted for consultant scope, 359 Design will pay consultants as listed in this agreement including Mechanical, Electrical and Plumbing, Structural Engineering, Landscape Design, Irrigation and Civil Engineering. 359 Design will obtain notarized lien releases with each payment made. These notarized lien releases will be held by 359 Design and transmitted digitally to the Town of Vail each time a payment is made. • Payments are due and payable thirty days from the date of the invoice. Amounts unpaid 30 days after the invoice date shall bear interest at the rate of 1.5% per month. An initial payment of $25,000 is due prior of the start of any work. This amount will be applied to the first invoice • Additional services not outlined above will be performed on an hourly or stipulated fee basis when requested and authorized in writing by Client. Hourly fees will be based upon an "Hourly Rate Schedule." • The design team's liability shall be limited for client's damages, to the maximum extent permitted by law, to the amount of $1,000,000 or the design team's fees collected, whichever is greater. This limitation shall apply regardless of the cause of action or legal theory pled or asserted. • Client will pay any upcharges in current insurance costs depending on the structure of the HOA for the contemplated parcels. This amount (if any) will presented to the Town of Vail upon receipt. • As the Americans with Disabilities Act (ADA) and applicable building codes are subject to various and possibly contradictory interpretations, the design team will use its reasonable professional judgment to interpret these and other governing regulations to the extent they are known and applied to the project. The design team does not warrant or guarantee that the project will comply with all regulations or interpretations of applicable codes, rules, and regulations as they apply to the project. It is intended by the parties to this Agreement that the Architect's services in connection with the project shall not subject the Architect's individual employees, officers or directors to any personal legal exposure for the risks associated with this project. Therefore, and notwithstanding anything to the contrary herein, The Owner agrees that as the Owner's sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against the Architect, a Colorado corporation, and not against any of the Architect's employees, officers or directors. 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 359 oEsicN PROPOSAL ACCEPTANCE This proposal is valid for 3 months from date of signature and may be amended or extended after that time by mutual agreement of both parties. Please indicate your acceptance of this proposal by signing both copies of this proposal, returning one executed copy to our office for our files. Upon receipt we will format a version of our standard Agreement for Architectural Services and forward for execution. Thank you for this opportunity. We look forward to discussing how 359 DESIGN and our team may assist you on this and other projects in your portfolio. Date: Date: George Ruther, Town of Vail Will Hentschel, Its: Manager - 359 Design, LLC Attachments: Exhibit A — 359—Chamonix Fee Proposal 052915.pdf Exhibit B — 359—Chamonix Schedule 052915 Two Part Process.pdf 359 Design -710 West Colfax, Denver, CO-303-884-9131-whentschel@359arch.com 6/2/2015 Exhibit A- Chamonix Fee Proposal 359 Design - 15035 05/12/15, Revised 5/29/15 ***Fee Allocation to Align with Written Proposal Architecture/Interiors Firm Interior Options Beyond Base 359 Design Concept Design Schematic Design Design Development 95% Construction Documents Permit Process Bid Process Construction Administration Total Fee Al - Site Design, Character, Entitlements - Phase 1 359 Design $7,000 $14,000 $3,000 $3,500 $2,000 $1,000 $6,000 $36,500 Second Phase Entitlements & Individual Building Designs - Phase 2 359 Design $5,500 $16,350 $55,560 $95,080 $3,430 $2,300 $59,840 $238,060 Outreach / Public Meetings 359 Design me $8,000 $12,300 $20,300 Reimburables at 7% 1 1 1 Total Fee Architecture Consultants - Estimated Firm 359 Fees $12,500 $38,350 $70,860 $98,580 $5,430 $3,300 $65,840 $294,860 Concept Design Schematic Design Design Development 95% Construction Permit Process Bid Process Construction Documents Administration Total Fee Initial Fire Protection Design Shaner LS Specifications Anne Steiner Landscape Outside LA Structural Monroe and Newell MEP AEC Interior Design 359 Design Waterproof and Snow Management BC&E Site Design, Character, Entitlements - Phase 1 Consultants $647.50 $3,237.50 $2,800 $3,400.00 $10,085 Second phase Entitlements & Individual Building Designs - Phase 2 Consultants $11,450 $11,450 $68,700 $68,700 $11,450 $11,450 $45,800 $229,000 Reimbursable at 5% 1 1 1 i Total Fee Consultants Civil Engineering Firm Consultant's Fees 359 3% Markup $12,098 Schematic Design $14,688 Site Infrastructure - Design Development $71,500 Site Infrastructure - PEC Submittal $72,100 Site Infrastructure - Construction $11,450 Building Site - Construction $11,450 Bid Services $45,800 Construction Administration $239,085 Total Fee Civil Site Planning & Civil Design Phase 1 Civil Engineer / Martin/Martin $7,500 $30,500 $16,200 $12,200 $0 $1,100 $2,500 $70,000 Site Planning & Civil Design Phase 2 Civil Engineer/ Martin/Martin $18,100 $1,000 $2,500 $21,600 Estimated Reimbursable Phase 1 - Site Planning/Design, Character & Al Entitlements SUMMARY Civil and Site Planning Fees 359 3% Markup $7,500 $30,500 $16,200 $12,200 $18,100 $2,100 $5,000 $91,600 Concept Design Schematic Design Design Development 95% Construction Documents Permit Process Bid Process Construction Administration Total Fee Phase 1 $15,148 $47,738 $22,000 $19,100 $2,000 $2,100 $8,5001 $116,585 Phase 2 $16,950 $35,800 $136,560 $163,780 $32,980 $14,750 $108,140 $508,960 1) Reimbursable at Estimated at 7% for 359 Design and 5% for Consultants 2) 359 Design will Mark-up Consultants at 3% Phase 2 - Parcel Site Planning/Design, Entitlements & Individual Building Design Options - Value Added Firm Estimated Total Interior Options Beyond Base 359 Design $15,000 Full Marketing Materials for Sales 359 Design $28,000 Extra Public Outreach meetings 359 Design $4,500 per meeting 6/2/2015 Exhibit B- Chamonix - Two Stage process 29 -May -15 359 Design - Architecture, Planning, Design Design Schedule Site Apr -15 May -15 Jun -15 Jul -15 Aug -15 Sep -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 Apr -16 May 16 - November 17 Concept Design (1 months) (Planning, Civil, Marketing, PR) CONCEPT DESIGN Schematic Design (6 Weeks) (Civil, Planning) Civil Design (3 Months) (Civil) CIVIL ENGINEERING Entitlements & Permitting (1 months) (Planning, Civil, Marketing, PR) ENTITLEMENTS PERMITTING Construction (7 months) (Civil) Al CONSTRUCTION• • Deisgn Schedule Buildings Concept Design (2 months) (Architecture, Marketing, PR) CONCEPT DESIGN Schematic Design (2-4 months) (Architecture, Developer, PR,) Design Development (6 months) (Architecture, PR) DESIGN DEVELOPMENT Construction Documents (2 months) (Architecture, Design Team, Developer) • • . • PERMITTING Entitlement / Public Process Pre Application (Planning, Architecture, Developer, Legal, Civil, PR) PRE APP Application (Planning, Architecture) PEC Review Site (Planning, Architecture, Civil) PEC 2 PEC 1 DRB Review Site (Planning, Architecture, Civil) DRB 1 Council (Planning, Architecture, Developer, Civil, PR) Council 3 Council 1 r2 PEC Review Site (Planning, Architecture, Civil) PEC 1 PEC 2 DRB Review Site (Planning, Architecture, Civil) DRB 2 DRB 1 Council - Owner Review 177 Public Meetings Stake Holder Phase 1 - Project & Site Design (PR, Planning, Architecture, Developer, Civil) STAKEHOLDERS Sales (PR, Architecture, Developer) SALES 1, SALES' SALES Stakeholder Phase II - Building, Units, Product (PR, Planning, Architecture, Developer) STAKEHOLDERS STAKEHOLDERS Planning / Site Design - Open House (2 Open house Sessions) OPEN HOUSE_ Product, Building, Units - Open House (4 Open house Sessions) I I OPEN HG -L6= I OPEN HOUSb Confidential 6/2/2015 Page 1 I(IM VAIL � Memorandum To: From: Date: Subject Town Council Public Works 06/02/2015 Vail -Bridge Road Design Contract BACKGROUND In 2011 the Town received a bridge replacement grant in the amount of $647,200.00 for reconstruction of Bridge Road over the Gore Creek. In March 2015, the Town advertised for a Request For Qualifications (RFQ) for the design phase of the project. Submittal of qualifications were received April 23, 2015 from 8 firms. As required with a federally funded project, fees were not submitted and compensation was negotiated with the selected qualified consultant. Loris and Associates has been selected as the qualified consultant based on the project team and experience with similar projects. The design fees are consistent with the recently replace Matterhorn Bridge and it within the over all project budget of $1,300,000.00. Construction is scheduled for 2017. RECOMMENDATION Authorize the Town Manager to enter into an agreement, in a form approved by the Town Attorney, with Loris and Associates, Inc. to complete the design phase of the Vail - Bridge Road structure in the amount not to exceed $248,839.00 6/2/2015 TOWN OF VA 09 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Appointments to Vail Housing Authority and Vail Local Licensing Authority ACTION REQUESTED OF COUNCIL: Town Council makes appointments to Vail Local Housing Authority and Vail Local Licensing Authority BACKGROUND: The interviews for interested candidates to serve on the VLHA and VLLA were conducted during the earlier work session. One appointment will need to be made to the VLHA and three appointments will need to be made to the VLLA. There is a five year term for the VLHA position and two year terms for the VLLA positions. ATTACHMENTS: Memo VLHA and VLLA Appointments 6/2/2015 TOWN Of Memorandum To: Mayor and Town Council From: Patty McKenny, Town Clerk Date: May 28, 2015 Subject: Interview and appointments to Vail Local Housing Authority (VLHA) and Vail Local Licensing Authority (VLLA) Town Council will have an opportunity to interview and appoint candidates to the Vail Local Housing Authority and Vail Local Licensing Authority during the June 2 work session and evening meeting. Vail Local Housing Authority There are five members serving on the VLHA with appointments of five years. Steve Lindstrom's term comes to a close June 2015. There are two interested candidates for this position. Mr. Lindstrom has expressed his interest in continuing to serve on the Authority, experience attached, and Matt Hansen, has also submitted a letter of interest and resume. Both people have met the criteria of full-time, year- round residents of Eagle County, and as residents of the Town of Vail. If not a resident, the person would be required to work for a business holding a Town of Vail business license. In addition, the Authority members must have a proven ability to be an effective advocate for a full range of housing projects and be able to promote a vision for local employee housing that has been approved of by the majority of the Authority. Other Authority members include Mary McDougall (term expires 2016), Scott Ashburn (term expires 2017), Craig Cohn (term expires 2018), and James Wilkins (term expires 2019). The VLHA meets the fourth Tuesday of each month. Note Steve Lindstrom attendance record has been very good. Several questions suggested by senior housing planner to use in the interview include the following: ■ How do you see the role of housing in Vail impacting the Town Council's areas of focus? ■ Enhancing economic vitality ■ Growing a balanced community ■ Elevating the quality of the Vail experience ■ What skills or expertise do you bring to the Housing Authority? ■ What could the Housing Authority improve? ■ What is the Housing Authority doing well? ■ What do you see as the Housing Authority's future impact(s)? Or your impact on the Housing Authority? Vail Local Licensinq Authority There are five members appointed by Town Council to serve on the Vail Local Licensing Authority. The VLLA is established pursuant to the provisions of Colorado Revised Statutes section 12-46-103(4), section 12-47-103(9), and the Town Charter section 8.6, and is a commission which oversees the licensing of locations within the Town to sell alcoholic liquors and fermented malt beverages and for the local administration of the Liquor Code of 1935 and the Fermented Malt Beverages Act in accordance with said statutes. Three members reach the end of their term June 2015 and all three members are seeking reappointment with letters of interest submitted by Luca Bruno, Ted Steers, and Amanda Zinn. Those serving must be citizens of the United States, qualified electors of the Town of Vail, and have resided in the Town of Vail for not less than two years preceding appointment, and shall have no direct 6/2/2015 financial interest in any license to sell alcoholic beverages or any location having any such license. Other members include Micahel Hannigan and Craig Arseneau (both terms end 2016). The VLLA meets the second Wednesday of each month and considers new liquor licenses, renewals, transfers and special event liquor permits. Note the attendance record of each member has been very good. Town Council is asked to appoint one member to the VLHA for a five-year term, ending May 31, 2020 and three members to the VLLA for two-year terms ending May, 31, 2017. Schedule for Interviews: INTERVIEW TIMES: NAMES 3:10 Matt Hansen VLHA 3:15 Steve Lindstrom VLHA 3:20 Luca Bruno VLLA 3:25 Ted Steers VLLA 3:30 Amanda Zinn VLLA Attachments: ■ Letters of interest Town of Vail Page 2 6/2/2015 Patty McKenny From: Matt Hansen <Matt@ecedesignbuild.com> Sent: Wednesday, May 20, 2015 12:13 PM To: Patty McKenny Subject: LHA member application Attachments: Matt Hansen resume 05.20.15.pdf Hello Patty, I saw your public notice in the Vail daily and would like to apply. I feel employee and low income housing is a real struggle in the Vail valley and would like to be a part of the solution. Please see my attached resume for your review. I live in West Vail on Chamonix and own a design -build company based out of Vail. I have a contractors license under itsahansen.11c with the town of Vail. Please let me know if you require anything else and I look forward to the opportunity. BEST, MATT HANSEN 9704011100 OWNER & VISIONARY ECE DESIGN BUILD MATT(@ ECEDESIGNBUILD.COM ECEDESIGNBUILD.COM 1 6/2/2015 Matt Hansen Managing Business Owner, Project Manager, Construction Manager, Contractor, Real Estate Broker, Intern Architect E-mail: MATTOECEDESIGNBUILD.COM Phone (970) 401-1100; Address: 2480 Chamonix Lane K1. Vail CO, 81657 Work Experience October 2011 -Present Currently CEO & visionary at Eagle County contractors DBA ECE Design I Build which specializes in general contracting, design, Real Estate investing and construction services to the Vail Valley and along the 1-70 corridor. May 2009 -October 2011 ■ The sole proprietor of Hansen Design + Build which specializes in remodels, energy saving techniques and procedures, zero waste management and the general improvement of a client's interior and exterior environment. I specialize in Revit as a design and documentation tool, offer my clients an extremely professional experience including competitive pricing for quality work and a no hassle payment plan. • Assisted LGM with Revit based architectural renderings and documentation to represent 3-D spaces to potential clients. Renderings and documentation included a modern mountain remodel in the Vail valley area. Oct 2008 -May 2009, Independent contractor / Revit Specialist: Assisting Berglund Architects with both commercial and residential design and construction documentation, construction administration and team lead of buildings in the Vail Valley area. Includes Design development and architectural documentation of a +8000 sq. ft. commercial project in Eagle, CO and several +2000 sq. ft. homes. The 8000 sq. ft. commercial park project, done in Revit, is to receive a "Certified" LEED accreditation upon completion. All buildings completed with Berglund Architects were designed using "Green building" techniques such as passive and active solar design using photovoltaic panels, zero waste, native low impact species landscaping and interior energy models which minimize energy usage. Hans Berglund also participates in the 1 % for the planet program. Negotiating a business plan with Aqua Escapes LLC. Company will specialize in high end residential interior and exterior renovations. Renovations include new-age "faux -stone" concepts designed and implemented in an interior and exterior setting to appear as realistic as actual stone with much less weight. Assiting SRI architects in the development, design and construction administration of high end single family homes in and around the Vail valley. Jun 2006- Oct 2008, Davis Partnership Architects, Edwards, CO: ■ Assisted with commercial, mixed-use and residential design, construction documentation and construction administration of buildings in the Vail Valley & Boulder area. Includes several +500,000 sq. ft. buildings with commercial & high end residential condos. Revit architecture was the main design tool for all work with Davis. ■ Trusted to represent the firm with clients on a daily basis. Daily tasks included meeting/negotiating design parameters with clients, coordinating structural, plumbing, electrical, and interior drawings with architectural and defining drawings, using Revit & AutoCAD. Professional presence and verbal skills resulted in minimal design -to - build changes required, and a significant time/labor cost savings. ■ Promoted to Team Lead within one year of start date due to proactive and aggressive leadership skills in support of multi-million dollar projects including: Solaris in Vail; The Peloton in Boulder; Alpine Place in the Eagle commercial park, Smiling Moose interior finish in Eagle, ■ "Go to guy" in the firm to be first trained or self -train for all state of the art architectural and drafting tools and systems. Unsurpassed expertise in Revit, ArchiCad, Form -Z, AutoCAD, Flash a Website design program, 3D Studio Max, Sketchup, Lumen Micro, and all adobe suites products. ■ Signed on with Davis Partnership in June 2006 directly from college (CU Boulder, Deans List) 2007-2008, Full Residential Remodel, Vail, CO: ■ Negotiated the purchase, full redesign and remodel of a one bedroom town home in Vail, CO. ■ Coordinated, designed and constructed entire project from start to finish. Significantly improved aesthetics, space efficiency, and energy efficiency resulted in documented increase of appraisal/value by 23%. 2005-2006, WH Contractors, Boulder, CO: ■ Assisted with the start-up of WH Contractors. Projects included residential design and construction of several additions in the Boulder area; Providing primary design and hands on construction support including CAD drawings; 6/2/2015 ■ Specialized in zero -waste construction management for all projects. ■ Worked —10 hours/week during school year, part-time 20+ hours/week over Summer, Holidays 2005-2006, EDKO Enterprises, Boulder, CO: ■ Assisted with residential design/construction company (EDKO) in design, remodel and construction of residential home in Boulder; Providing primary design support including CAD drawings; ■ Includes remodel of entire home interior, including kitchen, dining room, master bath and home theater ■ Worked —10 hours/week during school year, full-time 40+ hours/week over Summer, Holidays 2005, Leadville, CO: ■ Designed a classic Victorian style home on an empty 3 lot tract in Leadville; Home features lofted ceilings, elevator, and handicap accessibility; AutoCad 2004 for construction documents; City/County building/lot ratio optimized, setback compliant; 3D Studio Max for architectural renderings of the building 2002-2005, Home Depot, Louisville, CO: ■ Cashier; Lumber Yard; Garden Associate; Assisted customers with purchases; ■ Work —25 hours/week during school year, full-time 40+ hours/week over Summer, Holidays; 2001-2002, Key West Water Sports, Key West, FL ■ Worked full-time 40+ hours/week while completing full college course load; Full time supervisor for personal watercraft and moped rentals and repair services; Safety Monitor; Instructed —200 customers daily to operate wave runners and mopeds safely; Gave % day tours on wave runners for large groups Education 2002-2006, University of Colorado (CU), Boulder, CO: ■ Graduated: 12 May 2006, Major: Bachelor of Arts in ENVIRONMENTAL DESIGN with emphasis in design ■ Minor: Certificate of REAL ESTATE in the business school; Real estate internship required prior to earning real estate certificate; ■ CU Deans List, Environmental Design School, four semesters (3.5 GPA min): Fall 2006, Spring 2005, Spring 2004, Fall 2002; 3.49 Cum GPA; ■ Selected out of —250 CU Environmental Design School students to showcase 2 studio projects: ■ Designed "Transit Hub and Museum", Denver, CO (Fall 2004) ■ "Green -Tech" design project (Spring 2005) ■ Florida keys Community College, Key West, FL, 2001-2002 (two semesters): GPA 3.8 Cum Skills/Interests Proficient in: Revit, AutoCad, Adobe Acrobat, Photoshop, Illustrator, Indesign, Form -Z, Flash a Website design program, 3D Studio Max, Sketchup, Lumen Micro, ArchiCad, Outlook, Microsoft Excel, PowerPoint, Word, Carpentry, framing, drywall, electrical, interior trim work, tile work, window installation specialist. Team player: Enthusiastic, Creative, Work well with others; Independent, hardworking, efficient, positive attitude, energetic, enjoy a challenge, complete every task, helping friends and family with anything, and all around nice guy; Flexible, have moved —20 times (military family); Volunteer work/interests: 2007-2008 assisted in day-care for local Vail family; Fall 2004, Boulder Homeless Shelter, Boulder, CO: Assisted occupants in their morning routine; Spring 2000, Annapolis assisted living community, Boulder, CO: Read to senior citizens bi-weekly; Primary interests are Architecture/Real Estate, design, snowboarding, hiking, fishing, mtn. biking, bmx riding, motorcycle riding, four -wheeling, turning wrench on my 79 international scout, remodeling, Constructing built-in features for my home; Home owner in West Vail; References ■ William Leggett: Owner @ 365 consulting -710 Orion Dr. Denver CO. 80906. Phone: 970.306.1371 ■ Hans Berglund: Principal of Berglund Architects. -210 Edwards Village Blvd. Suite Al 03 P.O Box 2378, Edwards, CO. 81632. Phone: 970.926.4301 ■ Nick Clement: Media Specialist at Colorado Division Of Wildlife -201 130' st. Denver, CO 80211. Phone 719.499.6918 ■ Ed Korycan: European Craftsman -ph:303.440.0446 edkodesigns@yahoo.com 6/2/2015 Patty McKenny From: Steve Lindstrom <slmf@vailmovies.com> Sent: Monday, May 25, 2015 2:22 PM To: Patty McKenny Subject: RE: VLHA Patty: My experience is as follows: 2001 -present member Vail Local Housing Authority 1985-1995 commercial real estate appraiser and analyst 1975 -present owner and manager of housing units in Vail and Eagle County market 1995-2002 developed multi -use buildings in the Eagle County market 1973 -present resident of Town of Vail 1983 -present owner and employer, multi -location small business in local markets Please call with any questions, Steve Lindstrom 970-476-3035 From: Patty McKenny [mailto:PMcKenny(5)vailgov.com] Sent: Monday, May 04, 2015 2:38 PM To: 'Steve Lindstrom' Subject: RE: VLHA Hi Steve, Thank you for your email of interest for serving on the VLHA again. We've just posted the vacancy notice and requested information about background and experience in either resume format or email would be acceptable. The deadline is Monday May 25 with interviews slated for June 2 afternoon work session. So we'll include you on my list as an applicant. Hope that helps. Thank you! Patty McKenny Town Clerk pmckenny@vailgov.com 479-2136 From: Steve Lindstrom [mailto:slmf0)vailmovies.com] Sent: Friday, May 01, 2015 12:47 PM To: Patty McKenny Subject: VLHA Patty, My term on the Vail Local Housing Authority expires in May. more information from me. Thank you, I would like to re -apply. Please let me know if you would like 6/2/2015 Patty McKenny From: brunoluca1 @aol.com Sent: Thursday, May 21, 2015 11:43 AM To: Patty McKenny Subject: License Renewal To whom it may concern, I Luca Bruno would like to continue to be a part of the LLA Board (Liquor License). After the great experience of being a part of a talented team I would like to continue to work together. Best Regard, Luca Bruno Luca Bruno AT Bruno, Inc. 141 E. Meadow Drive, Ste. 112 Vail, CO 81657 970.479.0050 Work 970.376.4384 Mobile 6/2/2015 Ted Stccr� May 26.2015 Chairman Local Licensins, Authority Vail. CO To�Nn of Vail Council Members. I «ould like to volunteer for another term as chairman of Vail's Local Licensing Authority. My ongoing objective is to provide business with clear, law abiding systems to best serve our guests in an exciting. entertaining and safe environment. I believe this board has been extremely succe',sful xkith this objecti\e and our continued leadership \x ill serve the Town of Vail well into the future. I enjoN working N\ith the current board and look for\Nard to serving \\ith them for the foreseeable future. I am proud to be a member of the I ox\ n of Vail's ad\ isorN staff. Thant. } ou for ) our consideration. Ted Steers 6/2/2015 TO: Vail Town Council FROM: Amanda Zinn RE: LLA renewal letter May 13, 2015 Dear Council Members, Please accept this letter as an expression of my interest to continue serving on the Local Licensing Authority. Since 2011, I have truly enjoyed participating on this board, not only conversing with the local business owners and event producers, but with the other board members and Tammy Nagel. I have regularly attended the monthly meetings, the annual LLA meeting, and have been the LLA representative at Safe Bar meetings. As vice-chairman, it is rewarding to see the contributions LLA has made to Vail's continual effort to create a safe drinking environment; a most recent example is the success of the 2015 FIS Alpine World Ski Championships. I look forward to discussing this in greater detail. Sincerely, Amanda Zinn 6/2/2015 TOWN OF VAIN VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Town Manager's Report 6/2/2015 TOWN OF VAIN VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Presentation of the 2014 audited financial statements for the Town of Vail. PRESENTER(S): Kathleen Halloran, Finance Director and Michael Jenkins, McMahan and Associates ACTION REQUESTED OF COUNCIL: The 2014 audited financial statements are presented for Council information; no action is requested. BACKGROUND: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and copies made available for public inspection at the municipal building. The 2014 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A., CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION ATTACHMENTS: Financials letter stmts None - this presentation is for information only. 6/2/2015 FINANCE DEPARTMENT 4 •- ' ,tom+ � ` t i'r� �'�� C€ .��'�'.t r. 'rx 1 ��+, �� �� +� "!' )Y r i � xY�i �} �`x��: � f�Y �Ip� �,�'' �y,a� r5 +'�'� � r ?•��,7� -�, . s!e• .�=_-d., .isr. ' `-rr ", b., i.d . � �... � •�l 4 ,.� �+.�.1 �.,,/�y _�1�' � r�� T A '_.' i •.t'�i a� l�'.�`. 1 111 p ,^.V i :�.. d Mack Afflac June 2, 2015 2014 Financial Statements and Audit Report Kathleen Halloran, C.P.A. Finance Director Michael N. Jenkins, C.A., CRA Partner McMahan and Associates, L.L.C. Office: 1.970.845.8800 michael.jenkins@mcmahancpa.com Town of Vail I Finance Department 1 06/02/2015 6/2/2015 2 2014 Financial Statements Provide a broad overview similar to a private sector business, including capital assets and long-term debt on a full accrual basis STATEMENT OF NET POSITION Assets exceed liabilities by $200.6M $119.2M net investment in capital assets $1.9M TABOR reserves; $22.9M restricted; $56.5M unrestricted STATEMENT OF ACTIVITIES $13.0 increase in net position $64.9M revenue; $16.9M program specific and $48.OM general revenue $51.9M expenses Town of Vail I Finance Department 1 06/02/2015 6/2/2015 3 2014 Financial Statements VAIL REINVESTMENT AUTHORITY TAX INCREMENT FINANCING $11.9M issued in 2010 for Lionshead improvements $10.3M outstanding at year end Repayment from incremental property tax revenue from Lionshead redevelopment Town of Vail I Finance Department 1 06/02/2015 6/2/2015 21 2014 Financial Statements Record financial transactions for specific activities or governmental functions; ensure compliance with legal requirements and accounting principles; focus on near-term inflows and outflows and spendable balances GOVERNMENTAL FUNDS General, Capital Projects, Real Estate License Fee), Conference Center, Vail Reinvestment Authority Transfer Tax, Marketing (Business Local Marketing District, Vail PROPRIETARY FUNDS Internal Services — Heavy Equipment and Health Insurance Enterprise Funds — Dispatch Services and Timber Ridge Town of Vail I Finance Department 1 06/02/2015 6/2/2015 5 Fund Financial Statements 80 0 2 70 60 50 40 30 20 10 10 Year Reserves History 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ® All Other � Conference Center Fund � RETT Fund � Capital Projects Fund General Fund —*—Reserve Min Town of Vail I Finance Department 1 06/02/2015 6 6/2/2015 Fund Financial Statements Revenue — Increase mainly due to parking $689K and ski lift tax $570K Expenditures — Savings in general operations $600K; salaries and benefits due to vacancies $457K Fund Balance - $19.7 million compared with target $9.0 million or 25% revenue Town of Vail I Finance Department 1 06/02/2015 TOWN OF VAIL 6/2/2015 7 Fund Financial Statements Revenue — Variance due to additional sales tax $1.01VI Expenditures — Variance for approved projects not yet completed and carried over to 2015 $5.21VI; Project savings of nearly $500K Transfers and Financing — VRA funding of Lionshead projects not yet complete Fund Balance - $20.91VI Town of Vail I Finance Department 1 06/02/2015 TOWN OF VAIL 6/2/2015 E-13 Fund Financial Statements Revenue — Variance due to real estate transfer tax $950K better than budget offset by remainder of project reimbursements from Vail Recreation District $(965)K Expenditures — Variance due to approved projects not yet completed and carried over to 2014 $11.81VI; Project savings of $1.71VI; delayed projects $1.1M Transfers and Financing — Variance due to Conference Center funding of Ford Park improvements and renovations to clubhouse at Vail Golf Course and Nordic Center carried over to 2015 Fund Balance - $16.3M Town of Vail I Finance Department 1 06/02/2015 09 rawN of VAIL 6/2/2015 E7 2014 Financial Statements CAPITAL PROJECTS FUND Vail Village Welcome Center renovation; new parking system; capital street maintenance; facility capital maintenance; guest service signage enhancements VAIL REINVESTMENT AUTHORITY Lionshead parking entry; 1-70 Underpass design REAL ESTATE TRANSFER TAX FUND Ford Park field completion; Frontage Road bike and pedestrian paths Town of Vail I Finance Department 1 06/02/2015 6/2/2015 10 FINANCE DEPARTMENT 4 •- ' ,tom+ � ` t i'r� �'�� C€ .��'�'.t r. 'rx 1 ��+, �� �� +� "!' )Y r i � xY�i �} �`x��: � f�Y �Ip� �,�'' �y,a� r5 +'�'� � r ?•��,7� -�, . s!e• .�=_-d., .isr. ' `-rr ", b., i.d . � �... � •�l 4 ,.� �+.�.1 �.,,/�y _�1�' � r�� T A '_.' i •.t'�i a� l�'.�`. 1 111 p ,^.V i :�.. d Mack Afflac June 2, 2015 M MCMAHAN AND ASSOCIATES, L. L.C. Certified Public Accountants and Consultants �'q WEB SITE: WWW.MCMAHANCPA.COM !`�/JC CHAPEL SQUARE, BLDG C MAIN OFFICE: (970) 845-8800 A 245 CHAPEL PLACE, SUITE 300 FACSIMILE: (970) 845-8 1 08 P.O. BOX 5850, AVON, CO 8 1 620 E-MAIL: MCMAHAN@MCMAHANCPA.COM To the Mayor and Members of Town Council Town of Vail, Colorado We have audited the financial statements of Town of Vail, Colorado (the "Town") as of and for the year ended December 31, 2014. Professional standards require that we provide you with the following information related to our audit. Qualitative Aspects of Accounting Practices The Town's management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Town are described in Note I to the 2014 audited financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements are: • Estimating allowance for uncollectible receivables ($1,000 at December 31, 2014), based on management's experience with customers and other business partners, together with actual collections history since year-end. • Estimating useful lives of fixed assets, based on industry standards and perceived use of asset categories. We evaluated the key factors and assumptions used to develop these assumptions and found them to be reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements prior to finalization of the 2014 financial statements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Member: American Institute of Certified Public Accountants PAUL J. BACKES, CPA, CGMA AVON: (970) 845-8800 MICHAEL N. .JENKINS, CA, CPA, CGMA DANIEL R. CUDAHY. CPA. CGMA ASPEN: (970) 544-3996 FRISCO: (970) 668-348 1 6/2/2015 To the Mayor and Members of Town Council Town of Vail, Colorado Page 2 Management Representations As is required in all audit engagements, we have requested certain representations from management that were included in the management representation letter. This report is intended solely for the information and use of the Town Council of the Town of Vail, Colorado, its management, and others within the organization and is not intended to be, and should not be, used by anyone other than those specified parties. Sincerely, McMahan and Associates, L.L.C. May 27, 2015 6/2/2015 TOWN OF VAIL Financial Statements December 31, 2014 6/2/2015 Town of Vail, Colorado Financial Statements December 31, 2014 Table of Contents Page Independent Auditor's Report Al —A3 Management's Discussion and Analysis B1 — B7 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position C1 Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 Proprietary Funds: Statement of Net Position C5 Statement of Revenues, Expenses and Changes in Fund Net Position C6 Statement of Cash Flows C7 Fiduciary Funds: E4 Statement of Fiduciary Net Position C8 Statement of Changes in Fiduciary Net Position C9 Notes to the Financial Statements D1 — D26 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual E1- E2 Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual: Capital Projects Fund E3 Real Estate Transfer Tax Fund E4 Conference Center Fund E5 Vail Marketing Fund E6 Vail Local Marketing District E7 Vail Reinvestment Authority E8 Supplementary Information: Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual F1 Enterprise Funds: Schedule of Revenues, Expenses and Changes in Net Position — Budget (GAAP Basis) and Actual - Timber Ridge Affordable Housing Corporation & Timber Ridge Enterprise Fund F2 Schedule of Revenues, Expenses, and Changes in Net Position — Budget (Non -GAAP Basis) and Actual - With Reconciliation to GAAP Basis — Dispatch Services Fund F3 Internal Service Funds: Schedule of Revenues, Expenses, and Changes in Net Position — Budget (Non -GAAP Basis) and Actual - With Reconciliation to GAAP Basis — Heavy Equipment Fund F4 Schedule of Revenues, Expenses and Changes in Net Position — Budget (GAAP Basis) and Actual - Health Insurance Fund F5 6/2/2015 Town of Vail, Colorado Financial Statements December 31, 2014 Table of Contents (Continued) Undertaking to Provide Continuing Disclosure: Page Supplementary Information (continued): History of Pledged Revenues Internal Service Funds (continued): Table II — Combining Statement of Net Position F6 Combining Statement of Revenues, Expenses and Changes in Net Position F7 Combining Statement of Cash Flows F8 Special Revenue Funds: G2 Schedule of Project Expenditures - Budget (GAAP Basis) and Actual: Preliminary Assessed Valuation of Classes of Property in the Authority Capital Projects Fund F9 Real Estate Transfer Tax Fund F10 Local Highway Finance Report F11 — F12 Undertaking to Provide Continuing Disclosure: Table I — History of Pledged Revenues G1 Table II — History of Assessed Valuations G1 Table III — Mil Levies Affecting Property Owners within Vail Reinvestment Authority Plan Area G1 Table IV — Larges Taxpayers in the Authority G2 Table V — Preliminary Assessed Valuation of Classes of Property in the Authority G2 Table VI — History of Revenues, Expenditures and Changes in Fund Balance G3 Table VII — Budget Summary and Actual Comparison: Vail Reinvestment Authority G4 Table VIII — Outstanding Revenue Obligations G4 6/2/2015 M MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants {'g WEB SITE: WWW.MCMAHANCPA.COM !`�/JC CHAPEL SQUARE, BLDG C MAIN OFFICE: (970) 845-8800 A 245 CHAPEL PLACE, SUITE 300 FACSIMILE: (970) 845-8 1 08 P.O. BOX 5850, AVON, CO 8 1 620 E-MAIL: MCMAHAN@MCMAHANCPA.COM INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado (the "Town"), as of and for the year ended December 31, 2014, and related notes to the financial statements, which collectively comprise the Town's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those assessments, the auditor considers internal control relevant to the Town's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluation of the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Member: American Institute of Certified Public Accountants PAUL J. BACKES, CPA, CGMA AVON: (970) 845-8800 MICHAEL N. JENKINS, CA, CPA, CGMA ASPEN: (970) 544-3996 DANIEL R. CUDAHY, CPA, CGMA FRISCO: (970) 668-348 1 Al 6/2/2015 INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado as of December 31, 2014, and the respective changes in financial position and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis in Section B be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing procedures generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information in section E is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements, or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's financial statements taken as a whole. The accompanying supplementary information in section F (including individual fund budgetary schedules, combining internal service fund statements, budgetary schedules for project expenditures, and the Local Highway Finance Report) and section G (the Town's Undertaking to Provide Continuing Disclosure) is presented for the purpose of additional analysis and are not a required part of the Town's basic financial statements. The supplementary information in sections F and G are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information in section F is fairly stated in all material aspects in relation to the financial statements as a whole. The information included in the Town's Undertaking to Provide Continuing Disclosure in section G has not been subjected to the auditing procedures applied in the audit of the Town's basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. A�� 4"a ;P �r,, ,,� 4. /_ 'd. McMahan and Associates, L.L.C. May 27, 2015 A2 6/2/2015 MANAGEMENT'S DISCUSSION AND ANALYSIS 6/2/2015 Town of Vail, Colorado Management's Discussion and Analysis December 31, 2014 As management of the Town of Vail, Colorado (the "Town"), we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended December 31, 2014. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements. The Town's basic financial statements include three components: 1) government -wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Financial Highlights: The assets of the Town exceeded its liabilities at the close of the 2014 fiscal year by $200,649,013 (net assets). Of this amount, $1,901,000 is restricted for TABOR emergency reserves and $22,983,101 is restricted by enabling legislation. The Town's total net assets increased in the 2014 fiscal year by $13,012,809 which was attributable to an increase from governmental activities of $18,134,410 and a net decrease of ($5,121,601) from business -type activities. At December 31, 2014, the fund balance of the General Fund was $19,687,223. Of that amount, $1,815,000 was restricted for TABOR emergency reserves. Government -wide financial statements: The government -wide financial statements are designed to provide readers with a broad overview of the Town's finances in a manner similar to a private -sector business. The Statement of Net Position presents information on the Town's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected grant revenues or earned but unused vacation leave.) Both of the government -wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) and those that are supported by external revenues (business -type activities). The governmental activities of the Town include general government, public safety, public works, transportation, and economic development. The business -type activities of the Town consist of housing conducted through Timber Ridge Apartments, and dispatch services, conducted through Vail Public Safety Communications (both enterprise funds of the Town). The government -wide financial statements include not only the Town itself (known as the primary government), but also a legally separate marketing district (Vail Local Marketing District) and a legally separate urban renewal authority (Vail Reinvestment Authority). Because these component units function for all practical purposes as departments of the Town, their financial position and activities have been included as an integral part of the primary government. The government -wide financial statements can be found on pages C1 and C2 of this report. B1 6/2/2015 Overview of the Financial Statements (continued) Fund Financial Statements: A fund is an accounting entity that has a set of self -balancing accounts that records all financial transactions for specific activities or governmental functions. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. The Town's funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the governments' near-term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town's governmental funds include the General Fund, Debt Service Fund, Capital Projects Fund and three Special Revenue Funds — Real Estate Transfer Tax Fund, Vail Marketing Fund and Conference Center Fund — as well as the Vail Local Marketing District and the Vail Reinvestment Authority, which are component units of the Town. The Town adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for all funds to demonstrate compliance with the state budget statute. The basic governmental fund financial statements can be found on pages C3 and C4 of this report. Proprietary Funds: The Town reports two categories of proprietary funds — Internal Service and Enterprise. The Heavy Equipment Fund and Health Insurance Fund are internal service funds, while Timber Ridge and the Dispatch Services Fund are reported as enterprise funds. As their name implies, the internal service funds provide services to the Town's governmental activities. Timber Ridge provides affordable rental housing to people who work in Vail and the Dispatch Services Fund provides dispatch services to emergencies service agencies throughout Eagle County. Enterprise fund functions are presented as business -type activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages C5 through C7 of this report. The Town also presents a budgetary comparison for its proprietary funds. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the Town's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements, for the Town's pension plan, can be found on pages C8 and C9 of this report. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The Notes to the Financial Statements can be found on pages D1 through D26 of this report. B2 6/2/2015 Overview of the Financial Statements (continued) Government -wide Financial Analysis: As previously mentioned, the government -wide financial statements are designed to provide readers with a broad overview and long-term analysis of the Town's finances, in a manner similar to a private -sector business. Net position may serve over time as a useful indicator of a government's financial position. In the case of the Town, governmental assets exceeded liabilities by $196,776,421 at the close of the most recent fiscal year. Approximately 59% of the Town's net assets are invested in capital assets (land, buildings, equipment), less related outstanding debt. Since the Town uses these capital assets to provide services to citizens, these assets are not available for future spending, including provision of resources to repay the debt. The table below shows the Town's net position for 2014 and 2013. The Town's current assets from governmental activities and capital assets increased mainly due to an increase in cash and investments and a significant investment in capital assets. Major construction projects during 2014 included completion of the remodel of the Vail Information Center, guest service signage enhancements, reconstruction of the Lionshead parking entry, replacement of the Town's parking entry system, improvements in Ford Park Fields, and bike lanes constructed along North Frontage Road. The Town's long-term liabilities from governmental activities decreased due to scheduled principal payments on Vail Reinvestment Authority's outstanding debt. The Authority's 2010A and 2010B Tax Increment Bonds will be retired in 2018 and 2030, respectively. The Timber Ridge Enterprise Fund notes payable to the Town mature in 2032 and 2033. They are reported as "internal balances" in the government -wide presentation on page C1. Details of the promissory notes due from the Timber Ridge Enterprise Fund are found in note IV.F of this report. B3 6/2/2015 Governmental Activities Business -type Activities Total 2014 2013 2014 2013 2014 2013 Current and Other Assets $92,586,948 $83,223,499 (7,304,803) (6,958,661) 85,282,145 76,265,058 Capital Assets 126,667,069 117,632,771 11,484,408 16,373,270 138,151,477 134,006,041 Total Assets 219,254,017 200,856,270 4,179,605 9,414,829 223,433,622 210,271,099 Long-term Liabilities Outstanding 10,687,361 11,135,565 46,445 39,757 10,733,806 11,175,322 Other Liabilities 7,629,438 6,886,362 260,568 380,879 7,890,006 7,267,241 Total Liabilities 18,316,799 18,021,927 307,013 420,636 18,623,812 18,462,563 Deferred Inflows 4,160,797 4,192,332 - - 4,160,797 4,192,332 Net Position: Invested in capital assets, net of related debt 116,338,581 106,820,299 2,830,374 7,373,270 119,168,955 114,193,569 Restricted 24,884,101 26,179,058 - 55,000 24,884,101 26,234,058 Unrestricted 55,553,739 45,642,654 1,042,218 1,565,923 56,595,957 47,208,577 Total Net Position $196,776,421 $178,642,011 3,872,592 8,994,193 200,649,013 187,636,204 The Town's current assets from governmental activities and capital assets increased mainly due to an increase in cash and investments and a significant investment in capital assets. Major construction projects during 2014 included completion of the remodel of the Vail Information Center, guest service signage enhancements, reconstruction of the Lionshead parking entry, replacement of the Town's parking entry system, improvements in Ford Park Fields, and bike lanes constructed along North Frontage Road. The Town's long-term liabilities from governmental activities decreased due to scheduled principal payments on Vail Reinvestment Authority's outstanding debt. The Authority's 2010A and 2010B Tax Increment Bonds will be retired in 2018 and 2030, respectively. The Timber Ridge Enterprise Fund notes payable to the Town mature in 2032 and 2033. They are reported as "internal balances" in the government -wide presentation on page C1. Details of the promissory notes due from the Timber Ridge Enterprise Fund are found in note IV.F of this report. B3 6/2/2015 Overview of the Financial Statements (continued) The chart below provides financial information from the Town's Statement of Activities for the years 2014 and 2013. Revenue: Program Revenue Charges for services Operating grants Capital grants General Revenue Property and ownership tax Sales and lodging tax Other taxes Interest and other revenue Transfers Total Revenue Expenses: General government Public safety Public works and transportation Culture and recreation Economic development Housing Interest Total Expenses Change in Net Position Town of Vail's Changes in Net Position Governmental Business -type 1,195,013 187,636,204 180,238,877 Activities - (197,761) - Activities - (594,220) Total - 178,846,103 2014 2013 2014 2013 2014 2013 $ 9,967,009 $ 8,088,824 3,078,882 3,506,636 13,045,891 11,595,460 2,688,022 1,386,658 826,333 855,483 3,514,355 2,242,141 344,537 426,406 - - 344,537 426,406 8,025,356 7,648,981 8,025,356 7,648,981 29,527,012 26,913,976 29,527,012 26,913,976 12,365,740 9,853,648 12,365,740 9,853,648 3,339,881 1,385,729 (5,229,937) (133,267) (1,890,056) 1,252,462 16,800 (7,957,000) (16,800) 7,957,000 - 66,274,357 47,747,222 (1,341,522) 12,185,852 64,932,835 59,933,074 6,792,006 6,970,415 - - 6,792,006 6,970,415 9,617,580 9,367,179 2,623,193 2,540,847 12,240,773 11,908,026 18,776,646 18,620,768 - - 18,776,646 18,620,768 5,537,675 6,213,059 5,537,675 6,213,059 6,834,937 6,187,043 - - 6,834,937 6,187,043 - - 1,156,886 1,449,366 1,156,886 1,449,366 581,103 592,850 - - 581,103 592,850 48,139,947 47,951,314 3,780,079 3,990,213 51,920,026 51,941,527 18,134,410 (204,092) (5,121,601) 8,195,639 13,012,809 7,991,547 Net Position January 1 178,642,011 179,043,864 8,994,193 1,195,013 187,636,204 180,238,877 Change in Accounting Principle - (197,761) - (396,459) - (594,220) Net Position January 1 (Restated) - 178,846,103 1,195,013 - 180,041,116 Net Position December 31 $ 196,776,421 $ 178,642,011 3,872,592 8,994,193 200,649,013 187,636,204 Governmental Activities: Governmental activities increased the Town's net assets by $18,134,410. The following items represent other significant governmental activities during 2014: • Record revenue collections of sales tax and real estate transfer tax with increases over prior year of $1.9 and $2.1 million, respectively. • Construction related revenues also experienced a significant increase, with construction permits up $1.2 million, construction use tax up $445,000 and fees paid by developers in lieu of employee housing up $333,000 compared to prior year. • Increased visitation in the winter resulted in increased skier lift tax collections, up $344,000 and increased parking revenue from both parking passes and daily parking fees, up a total of $358,000 from the prior year. • Capital outlay exceeded depreciation by $9 million • Long-term liabilities were reduced by $475,000 through principal repayments. B4 6/2/2015 Overview of the Financial Statements (continued) Business -type Activities: Business -type activities are comprised of Timber Ridge Enterprise Fund, a fund providing affordable housing to people working in Vail, and Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. Financial Analysis of the Town's Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds: The focus of the Town's governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $75,823,574 an increase of $6,388,001 from the prior year's ending fund balances primarily as a result of record sales tax collections, the second-highest year of Real Estate Transfer Tax collections and increased construction activity. The following details ending fund balances for the past five years: Fund 2010 2011 2012 2013 2014 General Fund $22,886,692 $ 23,546,285 $ 23,403,652 $ 16,401,973 $ 19,687,223 Capital Projects Fund 19,279,317 20,358,739 19,402,790 25,769,300 30,409,349 Real Estate Transfer Tax 17,681,155 17,285,604 16,427,967 16,848,758 16,282,049 Conference Center Fund 9,365,004 8,915,791 7,719,784 1,942,890 1,962,353 Vail Marketing Fund 138,171 156,543 173,975 185,851 196,757 Vail Local Marketing District 855,364 1,061,697 1,295,690 1,413,521 1,361,593 Debt Service Fund 194,282 205,647 21,271 21,311 - Vail Reinvestment Authority 15,229,105 10,143,992 6,736,211 6,851,969 5,924,250 Total $ 85,629,090 $ 81,674,298 $ 75,181,340 $ 69,435,573 $ 75,823,574 The General Fund balance grew steadily until 2011 and 2012, when reserves were used to cash -fund construction of a new West Vail Fire Station. In 2013, an $8 million investment in Timber Ridge was funded from General Fund reserves, resulting in a net decrease to fund balance of $7 million compared to a budgeted decrease of $9 million. In 2014, the General Fund increased by $3.3 million from prior year. Sales tax collections in 2014 exceeded all previous records in every month except April, May and October, and were 8.6% higher than the prior year. In addition, parking sales increased 8.6%, ski lift tax increased nearly 8.6% and county sales tax increased 8.3%. Other impacts to the General Fund balance include a significant level in funding of extraordinary special events which were offset by conservative spending by Town departments. The Capital Projects Fund and RETT Fund normally fluctuate as funds are spent on major projects. RETT collections increased 45% from the prior year due to increased sales of high-end residential properties The Capital Projects Fund benefited from increased sales tax during 2013 and 2014, as well as an all-time high of $1.8 million collected in construction use tax. The Conference Center Fund was created in 2003 to administer the sales and public accommodations taxes that went into effect on January 1, 2003 for the purpose of building and operating a conference center in the Town. However, the Conference Center taxes were rescinded as of January 1, 2006 with additional growth in the fund balance due entirely to earnings on investments. In November, 2011 voters approved use of these funds for improvements to Vail's recreational and cultural facilities. Two capital projects have been completed: the Ford Park athletic fields and improvements to the Gerald R. Ford amphitheater. Renovation of the clubhouse at the Vail golf course and Nordic center is planned to start fall 2015. B5 6/2/2015 Financial Analysis of the Town's Funds (continued) The Vail Reinvestment Authority (VRA) was added in 2004 to administer an urban renewal authority established in the Lionshead area of the Town. The incremental property taxes generate an average of $3.4 million per year, providing a funding mechanism for capital improvements within the district by covering debt service payments for $11.9 million in bonds issued in 2010. The bonds have funded several projects including a new Transit and Welcome Center, a remodel of the Vail Library, and improvements to both the east and west portals into Lionshead Village. Other capital projects within the district have been funded from annual tax increment collections such as Sun Bird Park and reconstruction of the Lionshead parking entry. As of December 31, 2014, the Lionshead parking system was complete with other projects such as the 1-70 Underpass underway. The bonds are scheduled to be paid off by 2030, when the district will expire. LA 80 ° 70 .e 50 40 30 20 10 10 Year Reserves History 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ®AII Other � Conference Center Fund � RETT Fund Capital Projects Fund General Fund —f—Reserve Min Proprietary Funds: The Town's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. In January, 2014 the Town added the Timber Ridge Enterprise Fund to reflect the transfer of all assets and liabilities of the Timber Ridge Affordable Housing Corporation. Operations of the Timber Ridge housing project are now reported within this enterprise fund of the Town. In September, 2014 the Corporation was administratively dissolved. Unrestricted net assets for the Heavy Equipment Fund, Timber Ridge Enterprise Fund, and the Dispatch Services Fund at the end of the year were $2,053,885; $(131,091); and $1,173,309, respectively. The Health Insurance Fund net assets were $2,335,774, all of which are restricted for the Town's self-funded health insurance program. Budget Variances in the General Fund: General Fund revenue was higher than the amended budget by $1,878,182 or 5.5%, mainly due to increased ski lift tax collections (up 15% from budget), county sales tax (up 10.5%), and rental revenue (up 24.2%). Expenditures were below budget by $1,119,708 or 3.3%. Capital Assets: The Town's government -wide capital assets, net of accumulated depreciation, increased by $4,145,439 in 2014. Capital additions included completion of the Lionshead parking system, a new fire truck, guest service signage enhancements, the remodel of the Vail Village Information Center, and bike lanes on the North Frontage Road. Additional information, as well as a detailed classification of the Town's net capital assets, can be found in the Notes to the Financial Statements in footnote IV.0 of this report. B6 6/2/2015 Long-term Debt: As of the end of the current fiscal year, the Vail Reinvestment Authority had $10,310,000 of tax increment bonds outstanding, of which $490,000 of bond principal is due within one year. Additional information regarding the Authority's debt can be found in the Notes to the Financial Statements in footnote IV.G of this report. Sales Tax: During 2014, the Town had a 4% general sales tax to support governmental operations, including capital expenditures. The following chart shows changes in the general sales tax for the past ten years. The Town experienced record collections in 9 out of 12 months during the year, with total collections up 8.6% from the prior year. 24.D 77.D 20.D 18.D 18.D 14.D 17.D 10.D 8.0 8.0 4.0 7.0 0.0 Sales Tax Compared with Inflation 7005 7008 7007 7008 7009 7010 7011 7017 7015 7014 7015 Budget 788.0 770.0 757.0 754.0 718.0 198.0 180.0 187.0 144.0 178.0 108.0 90.0 77.0 54.0 58.0 18.0 Next Year's Budget and Rates: The Town's General Fund balance at the end of the current fiscal year was $19,687,223; representing 55% of annual revenue. The Town anticipates using $1,025,000 in special events such as the 2015 World Alpine Ski Championships and Burton US Open Snowboarding Championships. Request for information This financial report is designed to provide a general overview of the Town's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report should be addressed to the Town of Vail, Finance Director, 75 S. Frontage Road, Vail, Colorado 81657. B7 6/2/2015 GOVERNMENT -WIDE FINANCIAL STATEMENTS 6/2/2015 Town of Vail, Colorado Statement of Net Position December 31, 2014 The accompanying notes are an integral part of these financial statements. C1 6/2/2015 Governmental Business -type Activities Activities Total Assets: Equity in pooled cash and investments 60,068,781 1,281,848 61,350,629 Unrestricted cash and investments 8,432,115 860,243 9,292,358 Cash - restricted 1,865,408 44,529 1,909,937 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 4,160,797 - 4,160,797 Othertaxes 4,771,096 4,771,096 Other governments 94,164 - 94,164 Other 1,548,912 23,637 1,572,549 Inventory 287,091 - 287,091 Prepaid expenses 4,254 197 4,451 Interest receivable 47,838 - 47,838 Internal balances 9,554,034 (9,554,034) - Rent receivable - 38,777 38,777 Loans receivable: Collectible in more than one year 1,752,458 - 1,752,458 Capital assets not being depreciated 29,219,007 4,399,500 33,618,507 Capital assets being depreciated, net of accumulated depreciation 97,448,062 7,084,908 104,532,970 Total Assets 219,254,017 4,179,605 223,433,622 Liabilities: Accounts payable 3,623,290 84,429 3,707,719 Due to other governments 3,751 - 3,751 Retainage payable 359,494 - 359,494 Accrued salaries and wages 655,235 58,328 713,563 Interest payable 47,622 47,838 95,460 Other deferred revenue 1,330,688 5,543 1,336,231 Deposits payable 553,443 44,525 597,968 Compensated absences: Due within one year 565,915 19,905 585,820 Due in more than one year 848,873 46,445 895,318 Bonds payable: Due within one year 490,000 - 490,000 Due in more than one year 9,838,488 - 9,838,488 Total Liabilities 18,316,799 307,013 18,623,812 Deferred Inflow of Resources: Unavailable property taxes 4,160,797 - 4,160,797 Total Deferred Inflow of Resources 4,160,797 - 4,160,797 Net Position: Net investment in capital assets 116,338,581 2,830,374 119,168,955 Restricted for: Emergencies 1,901,000 - 1,901,000 Other purposes 22,983,101 - 22,983,101 Unrestricted: 55,553,739 1,042,218 56,595,957 Total Net Position 196,776,421 3,872,592 200,649,013 The accompanying notes are an integral part of these financial statements. C1 6/2/2015 Town of Vail, Colorado Statement of Activies For the Year Ended December 31, 2014 The accompanying notes are an integral part of these financial statements. C2 6/2/2015 Net(Expense)Revenue and Program Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business -type Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General Government: 6,792,006 4,199,855 1,238,612 9,765 (1,343,774) (1,343,774) Public Safety 9,617,580 305,257 - - (9,312,323) (9,312,323) Public Works & Transportation 18,776,646 4,664,362 1,035,598 121,248 (12,955,438) (12,955,438) Culture & Recreation 5,537,675 472,759 413,812 46,000 (4,605,104) (4,605,104) Economic Development 6,834,937 324,776 - 167,524 (6,342,637) (6,342,637) Interest on long-term debt 581,103 - - - (581,103) (581,103) Total Governmental Activities: 48,139,947 9,967,009 2,688,022 344,537 (35,140,379) (35,140,379) Business -type Activities: Dispatch services 2,623,193 1,695,988 826,333 - (100,872) (100,872) Housing (Timber Ridge) 1,156,886 1,382,894 - 226,008 226,008 Total Business -type Activities: 3,780,079 3,078,882 826,333 125,136 125,136 Total 51,920,026 13,045,891 3,514,355 344,537 (35,140,379) 125,136 (35,015,243) General Revenues: Taxes: Sales and use taxes 26,730,242 - 26,730,242 Real estate transfer taxes 6,849,449 6,849,449 Lodging taxes 2,796,770 2,796,770 Property and specific ownership taxes 8,025,356 8,025,356 Ski area lift ticket admissions tax 4,351,624 4,351,624 Franchise taxes 1,090,110 1,090,110 Cigarette taxes 74,557 - 74,557 Investment earnings 664,353 10,422 674,775 Gain (loss) on disposal of capital assets 69,247 (5,249,646) (5,180,399) Miscellaneous 2,606,282 9,287 2,615,569 Transfers 16,800 (16,800) - Total General Revenues and Transfers 53,274,789 (5,246,737) 48,028,052 Change in Net Position 18,134,410 (5,121,601) 13,012,809 Net Position - January 1 178,642,011 8,994,193 187,636,204 Net Position - December 31 196,776,421 3,872,592 200,649,013 The accompanying notes are an integral part of these financial statements. C2 6/2/2015 FUND FINANCIAL STATEMENTS 6/2/2015 Town of Vail, Colorado Balance Sheet Governmental Funds December 31. 2014 Liabilities and Fund Equity Liabilities: Accounts payable 996,680 Capital Real Estate Conference Vail Vail Local Vail Debt Total 1,998 General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental - Fund Fund Fund Fund Fund District Authority Fund Funds Assets: - 359,494 Accrued payroll and related liabilities 626,350 - - Equity in pooled cash and investments 16,060,250 20,739,269 16,573,869 1,962,353 288,844 - 55,624,585 Cash and cash equivalents - Unrestricted 11,340 - - - - 864,576 7,556,199 8,432,115 Cash and cash equivalents - Restricted - Total Liabilities 2,268,708 3,404,448 439,541 - 1,402,876 1,402,876 Receivables, net of allowance for uncollectible Deferred Inflows of Resources: accounts: 4,160,797 4,160,797 Total Deferred Inflows of Resources Property taxes assessed 4,160,797 - - Fund Balances: 4,160,797 Othertaxes 4,141,964 126,756 502,376 - 4,771,096 Other governments 75,638 - - 10,188,548 Restricted - 18,526 94,164 Other 1,032,225 471,214 20,965 Committed 9,066,729 17,427,055 - 1,524,404 Due from other funds - 3,049,280 - - 3,428,260 3,049,280 Loans receivable 630,260 9,554,034 8,150,412 10,184,294 Prepaid expenses 4,254 19,687,223 30,409,349 16,282,049 1,962,353 196,757 1,361,593 5,924,250 4,254 Total Assets 26,116,728 33,813,797 16,721,590 1,962,353 288,844 1,366,952 8,977,601 89,247,865 Liabilities and Fund Equity Liabilities: Accounts payable 996,680 2,096,710 239,421 Internal service funds are used by management to charge the costs of heavy equipment and health insurance to individual funds. 5,359 2,318 3,340,488 Due to other governments 1,998 - - Net Position of Governmental Activities - 1,753 3,751 Due to other funds - - - 3,049,280 3,049,280 Retainage payable - 159,374 200,120 - 359,494 Accrued payroll and related liabilities 626,350 - - 626,350 Unearned revenue 90,237 1,148,364 92,087 1,330,688 Deposits payable 553,443 553,443 Total Liabilities 2,268,708 3,404,448 439,541 92,087 5,359 3,053,351 9,263,494 Deferred Inflows of Resources: Property taxes 4,160,797 4,160,797 Total Deferred Inflows of Resources 4,160,797 4,160,797 Fund Balances: Non -spendable 634,514 9,554,034 - - - - 10,188,548 Restricted 1,835,568 - 16,282,049 1,962,353 196,757 86,000 4,521,374 24,884,101 Committed 9,066,729 17,427,055 - - - 1,275,593 - - 27,769,377 Assigned - 3,428,260 - 1,402,876 4,831,136 Unassigned 8,150,412 8,150,412 Total Fund Balances 19,687,223 30,409,349 16,282,049 1,962,353 196,757 1,361,593 5,924,250 75,823,574 Total Liabilities and Fund Balances 26,116,728 33,813,797 16,721,590 1,962,353 288,844 1,366,952 8,977,601 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 123,135,738 Other long-term assets and unearned charges are not available for current period expenditures and, therefore, are not reported in the funds. 1,632,568 Internal service funds are used by management to charge the costs of heavy equipment and health insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 7,920,990 Long-term liabilities, including bonds payable, interest payable, and compensated absences within governmental activities are not due and payable in the current period and, therefore, are not reported in the funds. (11,736,449) Net Position of Governmental Activities 196,776,421 The accompanying notes are an integral part of these financial statements. C3 6/2/2015 Revenues: Taxes Permits and licenses Intergovernmental revenue Charges for services Investment income Interest Subsidy Miscellaneous Total Revenues Expenditures: General government Public safety Public works and transportation Culture and recreation Economic development Debt service: Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Sale of assets Transfers in Transfers (out) Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances - January 1 Fund Balances - December 31 Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2014 Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds 24,153,490 11,603,793 6,849,449 - 2,796,770 3,662,130 49,065,632 2,747,488 - - 324,776 - - 3,072,264 2,010,236 448,509 125,394 - 2,584,139 6,742,853 209,319 467,254 - - - 7,419,426 158,769 300,661 147,973 19,463 2,369 636 1,219 631,090 - - - - - - 167,524 167,524 215,122 709,786 275,096 - - - - 1,200,004 36,027,958 13,272,068 7,865,166 19,463 327,145 2,797,406 3,830,873 64,140,079 6,646,148 - Amounts reported for governmental activities in the Statement of Activities are different because: 6,646,148 8,883,339 - 198,322 over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense, 9,081,661 12,915,022 11,756,926 6,304,130 (21,311) 30,976,078 1,106,151 - 1,929,423 (21,311) 3,035,574 3,192,048 - 316,239 2,849,334 643,134 7,000,755 - (927,719) - - 475,000 475,000 - - - - - 591,178 591,178 32,742,708 11,756,926 8,431,875 316,239 2,849,334 1,709,312 57,806,394 3,285,250 1,515,142 (566,709) 19,463 10,906 (51,928) 2,121,561 - 6,333,685 37,516 6,388,001 Amounts reported for governmental activities in the Statement of Activities are different because: 37,516 3,087,391 over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense, 3,087,391 - (3,049,280) (21,311) (3,070,591) 3,124,907 (3,049,280) (21,311) 54,316 Statement of Net Position. This is the amount of principal repayments. 475,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 1,189,619 3,285,250 4,640,049 (566,709) 19,463 10,906 (51,928) (927,719) (21,311) 6,388,001 16,401,973 25,769,300 16,848,758 1,942,890 185,851 1,413,521 6,851,969 21,311 69,435,573 19,687,223 30,409,349 16,282,049 1,962,353 196,757 1,361,593 5,924,250 75,823,574 Net Change in Fund Balances of Governmental Funds 6,388,001 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense, net of disposals for the year. 8,959,436 Internal service funds are used by management to charge the cost of heavy equipment and health insurance to individual funds. This is the amount of internal service fund change in net position for the year. 1,193,031 Repayment of bond and lease principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. This is the amount of principal repayments. 475,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 1,189,619 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (70,677) Change in Net Position of Governmental Activities 18,134,410 The accompanying notes are in integral part of these financial statements. C4 6/2/2015 Assets: Current Assets: Equity in pooled cash and investments Cash and cash equivalents - Unrestricted Accounts receivable , net of allowance for uncollectibles Inventory Prepaid expenses Total Current Assets Non-current Assets: Cash and cash equivalents - Restricted Rent receivable Property, plant, and equipment, net of accumulated depreciation Total Non-current Assets Total Assets Liabilities: Current Liabilities: Accounts payable Tenant security deposits Unearned revenue Accrued interest payable Accrued salaries and wages Current portion of compensated absences Total Current Liabilities Non-current Liabilities: Notes payable Compensated absences, net of current portion Total Non-current Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Town of Vail, Colorado Proprietary Funds Statement of Net Position December 31, 2014 The accompanying notes are an integral part of these financial statements. C5 6/2/2015 Business -type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Enterprise Fund - Affordable Services Internal Timber Ridge Housing Corp Fund TOTAL Service Funds - 1,281,848 1,281,848 4,444,196 860,243 - 860,243 - 6,178 17,459 23,637 24,508 - - - 287,091 197 - 197 - 866,618 1,299,307 2,165,925 4,755,795 44,529 - 44,529 - 38,777 - 38,777 - 10,541,593 942,815 11,484,408 3,531,331 10,624,899 942,815 11,567,714 3,531,331 11,491,517 2,242,122 13,733,639 8,287,126 83,109 1,320 84,429 282,802 44,525 - 44,525 - 5,543 5,543 47,838 - 47,838 - - 58,328 58,328 28,885 - 19,905 19,905 21,780 181,015 79,553 260,568 333,467 9,554,034 - 9,554,034 - - 46,445 46,445 32,669 9,554,034 46,445 9,600,479 32,669 9,735,049 125,998 9,861,047 366,136 1,887,559 942,815 2,830,374 3,531,331 (131,091) 1,173,309 1,042,218 4,389,659 1,756,468 2,116,124 3,872,592 7,920,990 The accompanying notes are an integral part of these financial statements. C5 6/2/2015 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2014 Non -Operating Revenues (Expenses): Intergovernmental revenues Business -type Activities 826,333 826,333 - Gain (loss) on disposal of assets Enterprise Fund - Enterprise Fund - - Governmental 56,730 Investment income Timber Ridge Dispatch 8,610 Activities - 34,370 Enterprise Fund - Affordable Services - Internal - Timber Ridge Housing Corp Fund TOTAL Service Funds Operating Revenues: Total Non -Operating Revenues (Expenses) 1,378,054 (6,769,631) 818,143 (4,573,434) Charges for services - Internal Change in Net Position 1,756,468 590,961 590,961 6,117,482 Charges for services - External - - 1,105,027 1,105,027 586,473 Rent 1,341,308 1,756,468 - 1,341,308 - Ground lease 38,787 38,787 - Insurance reimbursements - - - 742,842 Other 5,136 624 5,760 31,400 Total Operating Revenues 1,385,231 1,696,612 3,081,843 7,478,197 Operating Expenses: Operations 627,977 2,418,860 3,046,837 2,501,773 Health claims and premiums - - - 3,217,749 Depreciation 378,840 204,333 583,173 656,744 Total Operating Expenses 1,006,817 2,623,193 3,630,010 6,376,266 Operating Income (Loss) 378,414 (926,581) (548,167) 1,101,931 Non -Operating Revenues (Expenses): Intergovernmental revenues 826,333 826,333 - Gain (loss) on disposal of assets (5,249,646) - (5,249,646) 56,730 Investment income 1,812 8,610 10,422 34,370 Interest expense (143,743) - (143,743) - Transfers in (out) 6,769,631 (6,769,631) (16,800) (16,800) - Total Non -Operating Revenues (Expenses) 1,378,054 (6,769,631) 818,143 (4,573,434) 91,100 Change in Net Position 1,756,468 (6,769,631) (108,438) (5,121,601) 1,193,031 Net Position - January 1 - 6,769,631 2,224,562 8,994,193 6,727,959 Net Position - December 31 1,756,468 - 2,116,124 3,872,592 7,920,990 The accompanying notes are an integral part of these financial statements. C6 6/2/2015 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2014 Business -type Activities Enterprise Fund - Dispatch Enterprise Fund - Services Timber Ridge Fund TOTAL Governmental Activities - Internal Service Funds Cash Flows From Operating Activities: 1,281,848 1,281,848 4,444,196 860,243 Cash received from other funds - 590,961 590,961 6,117,482 Cash received from tenants for rent 1,354,984 - 1,354,984 - Cash received from (refunded to) tenants for security deposits, net (28,392) - (28,392) - Other cash receipts 20,441 1,105,651 1,126,092 1,349,268 Cash paid for goods and services (614,119) (500,025) (1,114,144) (4,907,124) Cash paid to employees 18,694 (2,036,541) (2,036,541) (928,905) Net Cash Provided (Used) by Operating Activities 732,914 (839,954) (107,040) 1,630,721 Cash Flows From Non -Capital Financing Activities: Transfer (to) other funds Transfer from other funds Cash received from operating grants Net Cash Provided by Non -Capital Financing Activities (345,966) (16,800) (362,766) 1,602,950 - 1,602,950 - 826,333 826,333 1,256,984 809,533 2,066,517 Cash Flows From Capital and Related Financing Activities: Cash received on disposal of fixed assets 60,034 Interest paid (145,904) (145,904) - Acquisition and construction of capital assets (941,034) (2,925) (943,959) (734,910) Net Cash (Used) by Capital and Related Financing Activities (11086,938) (2,925) (1,089,863) (674,876) Cash Flows From Investing Activities: Interest on investments Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Cash and Cash Equivalents - End of Period is Comprised of: Equity in pooled cash and investments Cash and cash equivalents - Unrestricted Cash and cash equivalents - Restricted Total - Cash and Cash Equivalents Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income/(Loss) Adjustments: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in rent receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in tenant security deposits Increase (decrease) in prepaid rent Increase (decreases) in accrued wages and benefits Total Adjustments Net Cash Provided (Used) by Operating Activities 1,812 8,610 10,422 34,370 1,812 8,610 10,422 34,370 904,772 (24,736) 880,036 990,215 - 1,306,584 1,306,584 3,453,981 904,772 1,281,848 2,186,620 4,444,196 - 1,281,848 1,281,848 4,444,196 860,243 - 860,243 - 44,529 44,529 904,772 1,281,848 2,186,620 4,444,196 378,414 (926,581) (548,167) 1,101,931 378,840 204,333 583,173 656,744 18,694 (17,097) 1,597 (11,447) (38,777) (38,777) - - - 23,064 6,595 6,595 - 13,578 (73,361) (59,783) (144,952) (28,392) (28,392) 3,962 3,962 - - (27,248) (27,248) 5,381 354,500 86,628 441,127 528,790- 732,914 (839,954) (107,040) 1,630,721 The accompanying notes are an integral part of these financial statements. C7 6/2/2015 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Position December 31, 2014 Assets: Cash and investments - Restricted Loans to participants Total Assets Net Position: Held in trust for pension benefits and other purposes Total Net Position Deferred Pension Compensation Trust Plan 57,221,971 12,738,000 353,638 - 57, 575, 609 12, 738, 000 57, 575, 609 12, 738, 000 57, 575, 609 12, 738, 000 The accompanying notes are an integral part of these financial statements. C8 6/2/2015 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2014 Additions: Contributions Investment Income / (Loss) Total Additions Deductions: Professional fees Benefits paid Total Deductions Change in Net Position Net Position - January 1 Net Position - December 31 Deferred Pension Compensation Trust Plan 2,818,077 695,419 3,573,859 730,637 6,391,936 1,426,056 41,084 345 3,176,066 477,661 3,217,150 478,006 3,174,786 948,050 54,400,823 11,789,950 57, 575, 609 12, 738, 000 The accompanying notes are an integral part of these financial statements C9 6/2/2015 NOTES TO THE FINANCIAL STATEMENTS 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 I. Summary of Significant Accounting Policies The Town of Vail, Colorado (the "Town") was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under a Council -Manager form of government. The Town's major operations include public safety, public works and transportation, culture and recreation, economic development, administration (general government), and housing. The Town's financial statements are prepared in accordance with generally accepted accounting principles ("GAAP"). The Governmental Accounting Standards Board ("GASB") is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established by GAAP used by the Town are discussed below. A. Reporting Entity The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Town is financially accountable. The Town is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. Consideration is also given to other organizations which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. The accompanying financial statements present the primary government and its component units; entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town's operations. There are three blended component units reported in the Town's financial statements: Vail Local Marketing District (the "District"), Timber Ridge Affordable Housing Corporation (the "Corporation") and Vail Reinvestment Authority (the "Authority"). The financial statements of theses entities can be obtained from the Town's administrative offices. A fourth blended component unit, the Town of Vail General Improvement District No. 1, is a dormant entity and, therefore, has no financial statements to report. 1. Vail Local Marketing District The District was authorized on November 2, 1999 by a general election that established a 1.4% tax on lodging within the Town's boundaries, beginning January 1, 2000. Proceeds from the tax are to be used for organization, management, promotion, and marketing of public events, for business recruitment, and for tourism promotion. Town Council members also act as the District's Board of Directors. The District is reported as a special revenue fund. D1 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation The Corporation was incorporated on July 9, 2003 as a Colorado non-profit corporation to provide affordable housing for persons employed in the Town or Eagle County, Colorado. The Corporation owned and operated, exclusively on behalf of and for the benefit of the Town, a 198 -unit rental housing project (the "Project") located in the Town. The formation of the Corporation was approved by the Town, and its operations were governed by a Board of Directors comprised, as of March 2005, of members of the Town's management team. Previously, the Board was comprised solely of members of the Town Council. Upon dissolution of the Corporation and retirement of all liabilities, all property of the Corporation is to be transferred to the Town. The acquisition of the Project was financed through the issuance of revenue bonds and a note payable to the Town. While the Town is not legally obligated to pay the indebtedness of the Corporation, the Town has agreed to consider providing funds, if needed, to the Corporation to make the scheduled debt service payments of the Corporation. The Town has a right to obtain title to the Project at any time by defeasing all outstanding bonds of the Corporation. The Corporation is reported as an enterprise fund. At the time of purchase, the Town advanced the Corporation $1,000,000 of the purchase price of the Project. During 2005 and 2006, the Town advanced $700,000 and $200,000 respectively, to the Corporation. This additional funding helped improve the Corporation's year-end liquidity position. In February 2013, the Town made an $8 million transfer and $8 million loan to retire the Corporation's variable interest long-term debt. As of January 2014, all assets and liabilities of the Corporation were transferred to the Town's new Timber Ridge Enterprise Fund ("Timber Ridge"). Operations of the Project are now reported within this enterprise fund of the Town. In September 2014, the Corporation was administratively dissolved. 3. Vail Reinvestment Authority The Authority was created on November 4, 2003 pursuant to the Colorado Urban Renewal Law (C.R.S. 31-25-1) to oversee development and redevelopment of identified blighted areas within the Town. The Town Council approved the formation of the Authority at a public hearing, and filed applicable certification of compliance with the Division of Local Government. Its operations are governed by a Board of Commissioners comprised solely of members of the Town Council. The Authority is reported as a special revenue fund. D2 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 4. Town of Vail General Improvement District No. 1 On October 3, 2006, the Town Council accepted a petition requesting formation of the Town of Vail Public Improvement District No. 1. The District is a public, or quasi -municipal subdivision of the state of Colorado and a body corporate with the powers set forth in Part 6, Article 25, Title 31 of the Colorado Revised Statutes. The Town Council is the ex -officio Board of Directors of the District. Services provided by the District include (a) programming, regulating, and generally administering public functions to be conducted on the public plaza which will be constructed as part of the Solaris redevelopment project and (b) maintaining the plaza to the extent that the Solaris Metropolitan District fails to do so. At a special election on November 7, 2006, the eligible electors of the District authorized imposition of a mill levy of not more than fifteen mills in any year for the purpose of funding the administration, operation, and maintenance of the District's facilities should the Solaris Metropolitan District fail to do so. As of December 31, 2014, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. B. Government -wide and Fund Financial Statements The Town's basic financial statements include both government -wide (reporting the Town as a whole) and fund financial statements (reporting the Town's major funds). Government -wide financial statements report on information of all of the non -fiduciary activities of the Town and its component units. Both the government -wide and fund financial statements categorize primary activities as either governmental or business - type. The Town's public safety, public works and transportation, culture and recreation, economic development, and administration functions are classified as governmental activities. Timber Ridge and emergency dispatch services of the Town are classified as business -type activities. The government -wide Statement of Activities reports both the gross and net cost of each of the Town's governmental functions and business -type activities. The governmental functions are also supported by general government revenues (sales taxes, property and specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the governmental function or a business -type activity. Operating grants include operating -specific and discretionary (either operating or capital) grants while the capital grants column reflects capital -specific grants. The government -wide focus is on the sustainability of the Town as an entity and the change in the Town's net assets resulting from the current year's activities. D3 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements The financial transactions of the Town are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self - balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures / expenses. The fund focus is on current available resources and budget compliance. The Town reports the following major governmental funds: The General Fund is the Town's primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. Resources restricted within this fund relate to TABOR reserve requirements (see Note III.C) and Police Confiscation funds. The Capital Projects Fund accounts for and reports financial resources that are restricted by outside parties (i.e., a portion of the Town's sales tax as well as restricted intergovernmental grants and awards received) as well as amounts committed by Council for expenditures of capital outlay, including the acquisition or construction of capital facilities and other capital assets. It excludes those types of capital -related cash outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments. The Real Estate Transfer Tax Fund is used to account for the collection of a real estate transfer tax which is specifically restricted per Town ordinance for acquiring, maintaining, and improving real property for parks, recreation, open space and for supporting sustainable environmental practices. The Conference Center Fund was established to account for the collection of a sales tax and public accommodations tax which were specifically restricted for the financing of the construction and operations of a conference center in the Town. The Conference Center taxes were rescinded by election in November 2005. Voters elected in November 2011 to authorize use of the funds for specific capital projects including the clubhouse at the Vail golf course and Nordic center, the Ford Park athletic fields, and improvements to the Gerald R. Ford amphitheater. Work began on these projects during 2012 and continued during 2013 and 2014. The Vail Marketing Fund accounts for the collection of business license fees which are specifically restricted for expenditures related to the marketing of the Town. The Vail Local Marketing District accounts for collection of lodging taxes, which are restricted for use for the activities of the District. D4 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements (continued) The Vail Reinvestment Authority accounts for the collection of Tax Increment Financing revenues which are restricted for use for the activities of the Authority. The Debt Service Fund accounts for resources that are restricted to expenditure for principal and interest that have been legally mandated, as well as the accumulation for resources for, and the payment of, long-term obligation debt principal, interest, and related costs. The Town reports the following major proprietary or business -type funds: The Timber Ridge Enterprise Fund ("Timber Ridge") accounts for the activities of the Project. The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. Additionally, the Town reports the following fund types: Internal service funds account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. In addition, internal service funds are used to account for the health insurance plan provided to Town employees. Trust funds are used to account for the accumulation of resources for pension benefit payments to qualified Town employees and to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. No budget is adopted for the Town's trust funds. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long-term resources (long-term economic focus). Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1. Long-term Economic Focus and Accrual Basis Both governmental and business -type activities in the government -wide financial statements and the proprietary and fiduciary fund financial statements use the long-term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. D5 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 2. Current Financial Focus and Modified Accrual Basis The governmental fund financial statements use the current financial focus and are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. The Town considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures when due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. 3. Financial Statement Presentation As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this rule are payments where the amounts are reasonably equivalent to the value of the interfund services provided and other charges between the various functions of the Town. Elimination of these charges would distort the direct costs and program revenues are reported. Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the Town's enterprise funds are rents from individuals employed in the Town and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. E. Financial Statement Accounts 1. Equity in Pooled Cash and Investments The Town has a policy of central cash management whereby cash balances of each of the Town's funds are pooled in and invested in certain investments for all funds except the Pension Trust Fund and the Deferred Compensation Plan Fund. Additionally, the component units do not participate in the Town's central cash management. D6 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 1. Equity in Pooled Cash and Investments (continued) Equity in pooled cash and investments include demand deposits, short-term investments with original maturities of three months or less from the date of acquisition, and long-term investments in U.S. government obligations. Investments are stated at fair market value. 2. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. Cash equivalents are both readily convertible to cash and are so near their maturity they present insignificant risk of change in value due to interest rate changes. Restricted cash and cash equivalents represent certain proceeds of debt issuances, as well as certain resources set aside for their repayments because their use is limited by the applicable covenants. Restricted assets also include certain deposits that have been limited as to usage pursuant to escrow and similar agreements. 3. Receivables Receivables are reported net of an allowance for uncollectible accounts. Loans receivable in governmental funds consist principally of housing loans that are generally not expected or scheduled to be collected in the subsequent year 4. Inventory Inventory is valued at cost using the first -in / first -out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 5. Prepaid Items Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government -wide and fund financial statements. 6. Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as "due from other funds" or "due to other funds" on the balance sheet when they are expected to be liquidated within one year. Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances". D7 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 7. Capital Assets Capital assets, which include land, buildings, improvements, equipment, vehicles and infrastructure assets, are reported in the applicable governmental or business -type activity columns in the government -wide financial statements. Capital assets are defined by the Town as assets with an initial cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at cost where historical records are available and at an estimated historical cost where no historical record exists. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Capital outlay for projects is capitalized as projects are constructed. Costs related to the construction of assets include interest, engineering, legal, surveying and landscaping that were incurred from the beginning of construction until the assets were substantially complete are capitalized. Capital assets (excluding land and art) are depreciated using the straight-line method, over the estimated useful life. 8. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government -wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for non -vesting accumulating rights to receive sick pay benefits. After the completion of ten years of full-time service, employees are eligible for a cash or gift benefit. The estimated liability for all eligible employees is recorded in governmental activities in the Statement of Net Position, as a component of compensated absences. D8 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 9. Deferred Outflows and Inflows of Resources Deferred outflows of resources represent a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expenses/expenditures) until then. The Town has no items that qualify for reporting under this category on the government -wide Statement of Net Position. Deferred inflows of resources represent an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Town has only one item that qualifies for reporting in this category, unavailable revenue from property taxes, reported in the governmental balance sheet and on the Statement of Net Position. Property taxes are assessed in one year as a lien on the property, but not collected by the governmental unit until the subsequent year. Therefore, these amounts are deferred and recognized as an inflow from resources in the period that amounts become available. 10. Bond Premiums and Discounts Bonds payable are reported net of the applicable bond premium or discount. No amortization was taken on these premiums or discounts in the first year. These premiums and discounts are amortized over the life of the applicable bonds using the bond outstanding method. 11. Unearned Revenue For governmental funds, unearned revenues arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. For proprietary funds, unearned revenues arise when potential revenue is unearned. In subsequent periods, when revenue recognition criteria are met, or when the Town has legal claim to the resources, the liability for unearned revenue is removed and revenue is recognized. 12. Fund Equity Governmental accounting standards establish fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications include Non -spendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of the funds, but also provide clarity to the level of restriction placed upon fund balance. Fund balance can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further details of the various fund balance classifications refer to Note IV.K. D9 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies 1. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 2. Credit Risk The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. 3. Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. II. Reconciliation of Government -wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Position The governmental fund Balance Sheet includes reconciliation between the fund balance of total governmental funds and net position of governmental activities as reported in the government -wide Statement of Net Position. One element of that reconciliation explains "Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds". This $123,135,738 difference is related to property, plant and equipment of $294,746,241 less accumulated depreciation of $171,610,503. Another element of that reconciliation explains "Other long-term assets and unearned charges are not available for current period expenditures and therefore are not reported in the funds". This $1,632,568 difference is pension forfeitures of $462,532; interest receivable of $47,838; and a long term note receivable due to the Town of $1,122,198. Net assets totaling $7,920,990 of internal service funds used by management to charge the costs of heavy equipment and health insurance to individual funds are included in the governmental activities in the Statement of Net Position. Additionally, the reconciliation states that long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. This $11,736,449 difference is related to bonds and notes payable of $10,310,000; accrued compensated absences of $1,360,339; premium on issued debt of $18,488; and interest payable of $47,622. D10 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) Reconciliation of Government -wide and Fund Financial Statements (continued) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government -wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes reconciliation between net change in fund balances of governmental funds and changes in net assets of governmental activities as reported in the government -wide Statement of Activities. One element of that reconciliation explains "Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense." The details of this $8,959,436 difference are comprised of capital outlay of $16,887,404 less depreciation expense of $7,902,968; and a loss on the disposal of assets of $25,000. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town's Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund, Timber Ridge Enterprise Fund, and Dispatch Services Fund. As required by Colorado Statutes, all funds have legally adopted budgets and appropriations. The total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if unanticipated revenues offset them. All appropriations lapse at year-end. The budgets for these funds have been adopted on a non -GAAP budget and are reconciled to GAAP below: Change in Net Position - Budget Basis add/(less): Loan principal repayment to Capital Projects Fund Change in compensated absences Capitalized assets Depreciation Net book value of disposed assets Change in Net Position - GAAP Basis Heavy Timber Ridge Dispatch Equipment Enterprise Services Fund Fund Fund $ (76,998) $ 6,097,954 $ 93,058 345,966 - (13,955) - (88) 734,910 941,034 2,925 (656,744) (378,840) (204,333) (3,303) (5,249,646) - $ (16,090) $ 1,756,468 $ (108,438) D11 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) The Town followed these procedures in preparing, approving, and enacting its budget for 2014. (1) For the 2014 budget year, prior to August 25, 2013, the County Assessor sent the Town a certified assessed valuation of all taxable property within the Town's boundaries. (2) Prior to the end of the 2013 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2013, the Town computed and certified to the County Commissioners a levy rate that derived the necessary property taxes as computed in the proposed budget. (4) After a required publication of "Notice of Proposed Budget", the Town adopted the proposed budget and an appropriation ordinance which legally appropriated expenditures for the upcoming year. (5) After adoption of the budget ordinance, the Town may make the following changes: a) transfer appropriated money between funds; b) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; c) approve emergency appropriations; and d) reduce appropriations for which originally estimated revenues are insufficient. Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2013 were collected in 2014 and taxes certified in 2014 will be collected in 2015. Taxes are due on January 1 in the year of collection; however, they may be paid in either one installment (no later than April 30) or two equal installments (not later than February 28 and June 15) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1 %) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. B. Budgetary Information — Vail Local Marketing District The District's budget timetable varies from the Town's. The District followed these procedures in preparing, approving, and enacting its budget for 2014. (1) On or before September 30, 2013, the District must submit to the Board a recommended budget that details the revenues necessary to meet the District's operating requirements. This was done on September 17, 2013. (2) After appropriate public notice and a required public hearing, the Board must adopt the proposed budget and a resolution that legally appropriated expenditures for the upcoming year on or before December 5, 2013. The Board adopted the 2014 budget on October 1, 2013. (3) After adoption of the initial budget resolution, the District may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. D12 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) III. Stewardship, Compliance, and Accountability (continued) B. Budgetary Information — Vail Local Marketing District (continued) During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. C. TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights ("TABOR"). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple -fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, or salary or fringe benefit increases. The reserve is calculated at 3% of fiscal year spending for fiscal years ending after December 31, 1995. Fiscal year spending excludes bonded debt service and enterprise spending. The Town has reserved a portion of the December 31, 2014 fund balance in the General Fund for this purpose in the amount of $1,815,000 which is the approximate required reserve. The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town's electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are: • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town debt; • No increase or imposition of a new real estate transfer tax; and, • All election requirements remain in effect. D13 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) III. Stewardship, Compliance, and Accountability (continued) C. TABOR Amendment The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. D. TABOR Amendment — Vail Local Marketing District As required by TABOR, the District has reserved $86,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2014. The ballot question approved by District voters on November 2, 1999, which established the 1.4% tax on lodging within the Town's boundaries, also authorized the District to collect and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The District's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions will require judicial interpretation. IV. Detailed Notes on all Funds A. Cash and Investments Pursuant to its charter, the Town has adopted, by ordinance, an investment policy governing the types of institutions and investments with which it may deposit funds and transact business. Under this policy, the Town may invest in federally insured banks, debt obligations of the U.S. Government, its agencies and instrumentalities, governmental mutual funds and pools including 2a7 -like pools, and repurchase agreements subject to policy requirements. The Town also accounts for the operations of the employees' pension plans that are administered by select employees acting as trustees who are governed by a trust agreement. The trust agreement gives the trustees considerable latitude with investment alternatives. As a result, all pension investments are considered legal under the trust agreement. The Town's deposits and certificates of deposit are entirely covered by federal depository insurance (FDIC) or by collateral held under Colorado Public Deposit Protection Act ("PDPA"). The FDIC insures the first $250,000 of the Town's deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. As of year end, the bank balance of the Town's deposits was $18,288,225. The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2014. D14 6/2/2015 IV. Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on all Funds (continued) A. Cash and Investments (continued) At year end, the Town had the following investments and maturities: Type Rating Deposits: Cash on hand Demand deposits Certificates of deposit Certificates of deposit Total deposits Investments: US agencies - FHLMC, FHLB, FNMA Mortgage pools Colotrust Pension and Section 457 investments Total investments Total deposits and investments Reconciliation to Statement of Net Position: Equity in pooled cash and investments Cash and cash equivalents - Unrestricted Cash and cash equivalents - Restricted Fiduciary Funds Total AA+ AA+ AAAm N/A Carrying Maturities Value $ 11,340 29,065,624 <1 year 1,198,451 <5 years 10,510,100 $ 40,785,515 <5 years $ 13,703,237 N/A 6,217,482 N/A 11,493,052 N/A 70,313,609 101,727,380 $ 142,512,895 $ 61,350,629 9,292,358 1,909,937 69,959,971 $ 142,512,895 Pools. The Town has invested in the Colorado Government Liquid Asset Trust ("Colotrust"), which is an investment vehicle established for local government entities in Colorado to pool surplus funds. They operate similarly to a money market fund and each share is equal in value to $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor's. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk. The Town's general investment policy is to apply the prudent -person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. D15 6/2/2015 IV. Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on all Funds (continued) A. Cash and Investments (continued) Concentration of Credit Risk. The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments are as follows at year end: Investment Type Rating Percentage Colotrust AAAm 19% Investments in the Deferred Compensation Plan and the Pension Trust Funds are held by trustees and are not categorized because they are not evidenced by specific securities that exist in physical or book form. B. Receivables Receivables as of year-end for the Town's funds, including applicable allowances for uncollectible accounts, are as follows: D16 6/2/2015 Capital Real Estate Vail Vail Local General Projects Transfer Marketing Marketing Fund Fund Tax Fund Fund District Receivables: Property taxes $ 4,160,797 - - - - Othertaxes 4,141,964 - 126,756 - 502,376 Other governments 75,638 - - - - Other 1,033,225 471,214 20,965 - - Gross Receivables 9,411,624 471,214 147,721 - 502,376 Less: Allowance for uncollectibles (1,000) - - - - Net Receivables $ 9,410,624 471,214 147,721 - 502,376 Vail Heavy Rein- Equip- Dispatch Health Timber vestment ment Services Insurance Ridge Authority Fund Fund Fund Total Receivables: Property taxes $ - - - - - 4,160,797 Othertaxes - - - - - 4,771,096 Other governments - 18,526 - - - 94,164 Other 6,178 - 5,704 17,459 18,804 1,573,549 Gross Receivables 6,178 18,526 5,704 17,459 18,804 10,599,606 Less: Allowance for uncollectibles - - - - - (1,000) Net Receivables $ 6,178 18,526 5,704 17,459 18,804 10,598,606 D16 6/2/2015 IV. Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on all Funds (continued) B. Receivables (continued) Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Total unearned revenue for governmental activities totaled $1,330,688 and is comprised of the following: Vail Capital General Marketing Projects Fund Fund Fund Total Unearned revenues: Business licenses $ - Library grants 54,544 Police programs 35,693 Construction projects - $ 90,237 92,087 $ - 92,087 - - 54,544 - - 35,693 1,148, 364 1,148,364 92,087 $ 1,148,364 $ 1,330,688 Unearned revenue for construction projects relates to $993,064 of funds collected from Holy Cross Energy for the community enhancement fund which is used to place utilities underground. The other $155,300 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. Loans receivable at December 31, 2014 are comprised of the following: a) In connection with the construction of phased major capital improvements to Ford Park and the Gerald R. Ford Amphitheater, located on Town -owned property, the Town entered into a cost-sharing arrangement with Vail Valley Foundation ("VVF"), wherein VVF agreed to reimburse the Town for all costs incurred in excess of the Town's stated $2.1 million share of the cost of such improvements. Under the terms of the agreement, as amended, VVF is to reimburse the Town for amounts advanced under the agreement by May 2018, without interest and without scheduled payments. The balance outstanding under the arrangement at December 31, 2014 was $1,122,198. b) The Town has established a program (the "EHOP Program") to assist qualified full- time Town employees with the purchase of a primary residence within certain geographic boundaries, by providing secured, non-interest bearing loans, with repayment over a maximum 15 -year term including both the principal balance plus a portion of any recognized appreciation in the value of the underlying property. All such advances may be repaid at any time by the borrower -employee. The balance of EHOP Program loans receivable at December 31, 2014 was $630,260. D17 6/2/2015 V. Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the year ended December 31, 2014 was as follows: Governmental Activities: Capital Assets, Not Being Depredated: Land Art Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated: Buildings and improvements Infrastructure and improvements Equipment and vehicles Total Capital Assets Being Depreciated Less Accumulated Depreciation For: Buildings and improvements Infrastructure and improvements Equipment and vehicles Total Accumulated Depreciation Total Capital Assets Being Depreciated, Net Governmental Activities Capital Assets, Net Business -type Activities Capital Assets, Not Being Depreciated: Land Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated: Buildings and improvements Equipment Total Capital Assets Being Depreciated Less Accumulated Depreciation For: Buildings and improvements Equipment Total Accumulated Depreciation Total Capital Assets Being Depreciated, Net Business -type Activities Capital Assets, Net Beginning Ending Balance Increases Decreases Balance $ 27,430,658 - - 27,430,658 1,7 67,349 46,000 (25,000) 1,788, 349 29,198,007 46,000 (25,000) 29,219,007 95,636,218 2,357,994 - 97,994,212 124,435,522 11,706,388 - 136,141,910 39,433,879 3,511,933 (538,965) 42,406,846 259,505,619 17,576,314 (538,965) 276,542,968 (59,373,971) (2,225, 575) - (61,599, 546) (82,739,172) (3,453,947) - (86,193,119) (28,957,712) (2,880,190) 535,662 (31,302,240) (171,070,855) (8,559,712) 535,662 (179,094,905) 88,434,764 9,016,602 (3,303) 97,448,063 $ 117,632,771 9,062,602 (28,303) 126,667,070 $ 4,399,500 - - 4,399,500 4,399,500 - - 4,399,500 16,285,959 937,240 (8,108,584) 9,114,615 2,3 84,849 6,718 - 2,391, 567 18,6 70,808 943,958 (8,108,584) 11,506,182 (5,463,512) (378,271) 2,858,939 (2,982,844) (1,2 33,526) (204, 902) - (1,438, 428) (6,697,038) (583,173) 2,858,939 (4,421, 272) 11,9 73,770 360,785_ (5,249,645) 7,084, 910 $ 16,3 73,270 360,785 (5,249,645) 11,484, 410 D18 6/2/2015 IV. Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on all Funds (continued) C. 0 Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Governmental Activities: General government Public safety Publicworks and transportation Culture and recreation Total Depreciation Expense -Governmental Activities Business -type Activities: Dispatch services Housing Total Depreciation - Business -type Activities $ 467,894 502,375 4,979,304 1,953,395 7,902,968 $ 204,333 378,840 583,173 Depreciation on fixed assets is recorded using the following estimated useful lives: Years Buildings 25-40 Building improvements 7-25 Infrastructure 5-50 Vehicles 5-15 Equipment 5-25 At December 31, 2014, the Town had $98,378,009 of fully depreciated assets. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. For accounting purposes, these leases are considered to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial statements. Long-term Asset — Rent Receivable (Ground Lease) In September, 2014, the Town executed a Ground Lease and a Development Agreement with Lion's Ridge Apartment Homes, LLC ("Lion's Ridge") with respect to the eastern half of the Timber Ridge development. This portion of the property was previously occupied by Timber Ridge Affordable Housing Corporation's building units A — I. Under the terms of the Ground Lease, the Town leases the new development property to Lion's Ridge for a 50 -year term, during which Lion's Ridge will construct and lease deed -restricted apartments on the newly developed property. The amount of rent payable over the 50 year term has been averaged on a straight-line basis for an annual amount of $155,149. As of December 31, 2014, the rent receivable accrued in the Timber Ridge Enterprise Fund was $38,787. No payments are due from Lion's Ridge until the year 2025. D19 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) IV. Detailed Notes on all Funds (continued) F. Interfund Receivables, Payables, and Transfers At December 21, 2014, the Vail Reinvestment Authority owed the Capital Projects Fund $3,049,280 in connection with several construction projects within the Lionshead district, including the study and design of an 1-70 underpass and reconstruction of the Lionshead parking structure entry. The following promissory notes payable from the Timber Ridge Enterprise Fund to the Town, which aggregate to $9,554,034 as of December 31, 2014 are reflected as internal balances between the governmental activities and business -type activities categories on the Statement of Net Position: Promissory notes totaling $1.9 million which bear interest at the rate of 1.5% per annum and mature December 1, 2032. These notes are payable to the extent that Timber Ridge has determined the availability of excess net revenues of the Project, after provision for necessary operating or capital reserves, but may be repaid at any time without penalty. Timber Ridge paid $28,500 in accrued interest expense relating to the $1.9 million notes during 2014. • The $8 million promissory note bears interest at the rate of 1.5% per annum, with blended annual payments, and matures December 1, 2033. Timber Ridge remitted $117,405 in interest expense to the Town during 2014 and, as of December 31, 2014, had accrued a total of $47,838 in interest payable to the Town relating to the $8 million note. Debt service requirements for the $8 million promissory note are as follows: G. Long-term Liabilities — Governmental Activities The Town has the following long-term debt outstanding for governmental activities: 1. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A The Authority issued $3,670,000 of Tax -Exempt Tax Increment Revenue Bonds dated November 4, 2010 (the "2010A Bonds"). Proceeds from the 2010A Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010A Bonds ranges from 2.5% to 4% per annum, and is payable June 1 and December 1 annually through June 1, 2018. D20 6/2/2015 Principal Interest Total 2015 $ 351,155 112,177 463,332 2016 356,423 106,870 463,293 2017 361,769 101,483 463,252 2018 367,196 96,016 463,212 2019 372,704 90,467 463,171 2020-2024 1,949,073 366,140 2,315,213 2025-2029 2,099,705 214,376 2,314,081 2030 1,796,009 54,380 1,850,389 Totals $ 7,654,034 1,141,909 8,795,943 G. Long-term Liabilities — Governmental Activities The Town has the following long-term debt outstanding for governmental activities: 1. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A The Authority issued $3,670,000 of Tax -Exempt Tax Increment Revenue Bonds dated November 4, 2010 (the "2010A Bonds"). Proceeds from the 2010A Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010A Bonds ranges from 2.5% to 4% per annum, and is payable June 1 and December 1 annually through June 1, 2018. D20 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities — Governmental Activities (continued) 1. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A (continued) The 2010A Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged property tax revenues. The 2010A Bonds are not subject to redemption prior to maturity at the option of the Authority. 2. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B The Authority issued $8,270,000 of Taxable Tax Increment Revenue Bonds (Direct Pay Build America Bonds) dated November 4, 2010 (the "2010B Bonds"). Proceeds from the 2010B Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010B Bonds ranges from 5.269% to 6.659% per annum, and is payable June 1 and December 1 annually from June 1, 2011 through June 1, 2030. Principal payments are payable June 1 and December 1 annually from June 1, 2019 through June 1, 2030. The Authority will receive a federal subsidy known as the "BAB Credit" equal to 35% of corresponding interest as provided under the American Recovery and Reinvestment Act of 2009. This "BAB Credit" decreased by 8.7% beginning December 1, 2013 due to federal budget reductions. As of June 1, 2014 the "BAB Credit" decreased by 7.3% due to federal budget reductions. The 2010B Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged incremental property tax revenues. 2010B Bonds maturing on or before June 1, 2020 are not subject to optional redemption prior to their respective maturity dates. The 2010B Bonds maturing on and after June 1, 2021 are subject to redemption prior to their respective maturity dates at the option of the Authority at a price equal to the principal amount plus accrued interest to the redemption date without a premium. All 2010B Bonds are subject to mandatory sinking fund redemption. H. Long-term Liabilities — Compensated Absences The Town has a policy allowing the accumulation of paid vacation and sick leave, subject to certain maximum limits. In accordance with GAAP, the Town's approximate liability for vacation pay earned by employees and longevity pay at December 31, 2014 has been reflected in the proprietary type fund financial statements and in the governmental activities column of the government -wide financial statements. Accumulated sick pay of approximately $3,251,372 at December 31, 2014 has not been reflected in the Town's financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. D21 6/2/2015 IV. Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on all Funds (continued) I. Long-term Liabilities — Refunded In prior years, the Town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the Town until retired; however, they are not included for the purposes of calculating debt limits of the Town. The amount of debt considered defeased cannot be readily determined as of December 31, 2014. J. Long-term Liabilities - Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2014 was as follows: Governmental Activities: Tax -Increment Bonds, Series 2010A Tax -Increment Bonds, Series 2010B Deferred amounts: Issuance premium Compensated absences Total Governmental Activities Long-term Liabilities Business -type Activities: Compensated absences Total Business -type Activities Long-term Liabilities Beginning Balance $ 2,515,000 8,270,000 Ending Due Within Additions Reductions Balance One Year (475,000) 2,040,000 490,000 - 8,270,000 - 27,472 - (8,984) 18,488 - 1,330,155 84,633 - 1,414,788 565,915 $ 12,142,627 84,633 (483,984) 11,743,276 1,055,915 2016 $ 66,262 88 - 66,350 19,905 $ 66,262 88 - 66,350 19,905 Debt service requirements at December 31, 2014 were as follows: General obligation bonds issued for governmental activity purposes are liquidated by the Debt Service Fund, whereas general obligation bonds issued for component unit purposes are liquidated by the component unit. D22 6/2/2015 Principal Interest Total Governmental Activities: 2015 $ 490,000 577,928 1,067,928 2016 500,000 564,928 1,064,928 2017 515,000 547,753 1,062,753 2018 535,000 526,753 1,061,753 2019 555,000 501,432 1,056,432 2020-2024 3,090,000 1,999,577 5,089,577 2025-2029 3,770,000 931,209 4,701,209 2030 855,000 28,467 883,467 Total Governmental Activities $ 10,310,000 5,678,047 15,988,047 General obligation bonds issued for governmental activity purposes are liquidated by the Debt Service Fund, whereas general obligation bonds issued for component unit purposes are liquidated by the component unit. D22 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) IV. Detailed Notes on all Funds (continued) K. Fund Balance Disclosures The Town classifies governmental fund balances as follows: Non -spendable — includes fund balance amounts inherently non -spendable since they represent inventories, prepaid items, and long-term portions of loans receivable. Spendable Fund Balance: Restricted — includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Committed — includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority, which is the Town Council. The Town's original budget legislation begins with combining historical data, assessment of needs for the upcoming year and the Town's platform to review, and/or make changes to each department's budget. The budget is formally presented to the Town Council via an advertised public process for review, revisions and final approval by year-end. All subsequent budget requests made during the year, after Town Council approval, must be presented via a public process and again approved by Town Council. Assigned — includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. Fund balance may be assigned by Town Council or its management designees. Unassigned — includes residual positive fund balance within the General Fund, which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. The Town's restricted amounts are to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents or contracts that prohibit this, such as grant agreements that require dollar for dollar spending. Additionally, the Town would first use committed, then assigned, and lastly unassigned amounts when expenditures are made. The Town has a minimum fund balance policy of 25% of annual General Fund revenues. V. Other Information A. Pension Plans The Town offers two defined contribution pension plans to cover all permanent paid employees of the Town. The Town established these qualified money purchase pension plans under Internal Revenue Code section 401(a), and may amend all of the plan provisions. The first plan covers all full time and qualified seasonal employees other than sworn police officers and firefighters; the second plan covers all full time and qualified seasonal employees of the Town's Police and Fire departments. The plan provisions are the same for both plans. D23 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) V. Other Information (continued) A. Pension Plans (continued) In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long-term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100%. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100%. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2014 of $57,221,971 are stated at market value. All earnings, losses, expenses and changes in the fair market value of the trust fund will be apportioned at least annually among the participants in proportion to each participant's current share of the Trust Investment Fund. The Town has no liability for unfunded future vested employee benefits. The trustees and administrators of the plans are the Retirement Board. The Retirement Board determines investment options made available to participants, in adherence with an adopted investment policy statement. The total amount of the Town's 2014 covered payroll was $16,153,921 of which $14,267,429 was for permanent employees and $1,886,493 was for seasonal staff. Total 2014 payroll for all Town employees was $17,780,952. D24 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) V. Other Information (continued) B. Retirement Savings Plan — Deferred Compensation Plan — IRC 457 The Town offers its employees a deferred compensation plan (the "457 Plan") created in accordance with Internal Revenue Code section 457. The 457 Plan, available to all Town employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. The modified accrual basis of accounting is used for the 457 Plan The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town's administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. The total assets of the 457 Plan were $12,783,000 at December 31, 2014. The assets were invested in mutual funds, as previously described. Pursuant to the Town's adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D. Risk Management The Town is exposed to various risks of loss related to workers compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. E. Commitments and Contingencies 1. Legal Claims During the normal course of business, the Town may incur claims and other assertions against it from various agencies and individuals. Management of the Town and their legal representatives feel none of these claims or assertions are significant enough that they would materially affect the fairness of the presentation of the financial statements at December 31, 2014. D25 6/2/2015 Town of Vail, Colorado Notes to the Financial Statements December 31, 2014 (Continued) V. Other Information (continued) E. Commitments and Contingencies (continued) 2. Federal Funds Funds received from Federal grants and programs are subject to audit and disallowance on ineligible costs. Management of the Town feels any potential questioned or disallowed costs would not materially affect the fairness of the presentation of the financial statements at December 31, 2014. F. Conduit Debt — Town of Vail, Colorado Multifamily Housing Revenue Bonds (Middle Creek Village Apartments Project), Series 2003A, 2003B and 2003-T These bonds were issued in 2003 in an aggregate principal amount of $16,850,000 to finance construction of multi -family housing projects within the Town. The bonds mature in 2038. The bonds are solely payable from, and are secured by, a pledge of revenue from loan agreements between the Town and Middle Creek Village, LLC (as borrower). The borrower's obligation is secured by Deeds of Trust, Security Agreements, Financing Statements and assignment of rents and leases. The bonds are a special limited obligation of the Town, payable solely from the specified revenues of the projects, and do not constitute debt or indebtedness of the Town. D26 6/2/2015 REQUIRED SUPPLEMENTARY INFORMATION 6/2/2015 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 The accompanying notes are an integral part of these financial statements. E1 6/2/2015 2014 2013 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: General sales taxes 13,640,000 14,322,000 14,322,000 - 12,971,000 Property and ownership taxes 4,465,000 4,353,500 4,358,411 4,911 4,227,966 Ski area lift ticket admissions tax 3,782,000 3,782,000 4,351,624 569,624 4,007,908 Franchise tax 1,005,000 1,080,000 1,090,110 10,110 1,046,902 Penalties and interest on delinquent taxes 36,550 36,550 31,345 (5,205) 36,267 Total - Taxes 22,928,550 23,574,050 24,153,490 579,440 22,290,043 Permits and Licenses: Construction fees 673,200 1,673,200 1,664,526 (8,674) 738,422 Contractors' licenses 60,000 60,000 64,100 4,100 34,618 Other permits and licenses 609,601 899,601 1,018,862 119,261 751,875 Total - Permits and Licenses 1,342,801 2,632,801 2,747,488 114,687 1,524,915 Intergovernmental: County sales tax 703,977 703,977 777,919 73,942 713,717 County road and bridge 720,000 720,000 733,197 13,197 709,292 Additional motor vehicle registration fees 24,000 24,000 28,851 4,851 26,359 Cigarette tax 80,000 80,000 74,557 (5,443) 73,249 Highway users tax 205,017 205,017 215,067 10,050 212,399 State health inspection 8,240 8,240 - (8,240) 8,840 Other state sources - 111,244 170,880 59,636 47,071 Federal sources - 17,200 9,765 (7,435) 36,289 Total - Intergovernmental 1,741,234 1,869,678 2,010,236 140,558 1,827,216 Charges for Services: Management fees - Vail Local Marketing District 105,000 105,000 105,000 - 105,000 Internal service charge 363,250 463,250 516,140 52,890 404,850 Out of district fire response 38,495 38,495 89,659 51,164 99,950 Alarm monitoring fees 27,000 27,000 23,611 (3,389) 24,422 Parking 3,839,680 3,839,680 4,528,137 688,457 4,170,065 Fines and forfeitures 276,274 276,274 207,723 (68,551) 227,420 Rents 840,896 840,896 1,044,463 203,567 918,691 Other charges, services, and sales 236,652 236,652 228,120 (8,532) 209,367 Total - Charges for Services 5,727,247 5,827,247 6,742,853 915,606 6,159,765 Other Revenues: Earnings on investments 110,000 110,000 158,769 48,769 34,458 Miscellaneous 107,000 136,000 215,122 79,122 392,249 Total - Other Revenues 217,000 246,000 373,891 127,891 426,707 Total Revenues 31,956,832 34,149,776 36,027,958 1,878,182 32,228,646 The accompanying notes are an integral part of these financial statements. E1 6/2/2015 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 (Continued) Expenditures: General Government: Town officials Administrative Community development Total - General Government Public Safety: Police department Fire department Total - Public Safety Public Works and Transportation: Highways and streets Transportation Parking operations Facility maintenance Total - Public Works and Transportation Culture and Recreation: Special recreation facilities Library Total - Culture and Recreation Economic Development: Contributions, marketing and special events Total - Economic Development Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Sale of Assets Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances - January 1 Fund Balances - December 31 (1,158,940) 287,360 3,285,250 2,997,890 14,361,136 16,401,973 16,401,973 13,202,196 16,689,333 19,687,223 2,997,890 The accompanying notes are an integral part of these financial statements. E2 8,628 (8,000,000) (7,991,372) (7,001,679) 23,403,652 16,401,973 6/2/2015 2014 2013 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 1,549,865 1,499,407 1,322,795 176,612 1,384,733 4,131,954 4,176,412 3,840,106 336,306 3,764,430 1,504,717 1,551,717 1,483,247 68,470 1,520,292 7,186,536 7,227,536 6,646,148 581,388 6,669,455 5,417,779 5,496,052 5,256,401 239,651 5,041,505 3,563,971 3,703,142 3,626,938 76,204 3,538,994 8,981,750 9,199,194 8,883,339 315,855 8,580,499 4,021,260 4,035,260 4,042,455 (7,195) 3,573,109 4,195,934 4,244,134 4,330,585 (86,451) 3,985,238 1,225,233 1,225,233 1,077,971 147,262 1,033,231 3,522,267 3,547,767 3,464,011 83,756 3,316,340 12,964,694 13,052,394 12,915,022 137,372 11,907,918 275,800 275,800 276,832 (1,032) 277,136 832,758 867,758 829,319 38,439 850,311 1,108, 558 1,143, 558 1,106,151 37,407 1,127,447 2,874,234 3,239,734 3,192,048 47,686 2,953,634 2,874,234 3,239,734 3,192,048 47,686 2,953,634 33,115,772 33,862,416 32,742,708 1,119,708 31,238,953 (1,158,940) 287,360 3,285,250 2,997,890 989,693 (1,158,940) 287,360 3,285,250 2,997,890 14,361,136 16,401,973 16,401,973 13,202,196 16,689,333 19,687,223 2,997,890 The accompanying notes are an integral part of these financial statements. E2 8,628 (8,000,000) (7,991,372) (7,001,679) 23,403,652 16,401,973 6/2/2015 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Revenues: Taxes: Sales tax Construction use tax Total - Taxes Intergovernmental: State grants Federal grants Total - Intergovernmental Charges for Services: Leases - Vail Commons Resale fees Total - Charges for Services Other: Interest on investments Project reimbursements/shared costs Construction fees Workforce housing sales and other Total - Other Total Revenues Expenditures: Public Works: Capital projects and acquisition Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Sale of assets Transfers in Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances - January 1 Fund Balances - December 31 2014 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) 2013 Actual 8,360,000 8,778,000 9,799,940 1,021,940 9,223,005 1,000,000 1,800,000 1,803,853 3,853 1,358,642 9,360,000 10,578,000 11, 603,793 1,025,793 10, 581,647 - 504,000 327,261 (176,739) - 240,000 240,000 121,248 (118,752) 223,858 240,000 744,000 448,509 (295,491) 223,858 197,295 197,295 197,295 - 166,910 - - 12,024 12,024 7,564 197,295 197,295 209,319 12,024 174,474 530,695 530,695 300,661 (230,034) 349,820 - 251,200 290,671 39,471 108,150 361,805 417,665 55,860 84,394 - 1,450 1,450 34,135 530,695 1,143,700 1,010,447 (133,253) 576,499 10,327,990 12,662,995 13,272,068 609,073 11,556,478 10,117,100 17,538,549 11,756,926 5,781,623 7,105,256 210,890 (4,875,554) 1,515,142 6,390,696 4,451,222 - - 37,516 37,516 30,000 3,950,000 4,328,546 3,087,391 (1,241,155) 1,885,288 3,950,000 4,328,546 3,124,907 (1,203,639) 1,915,288 4,160,890 (547,008) 4,640,049 5,187,057 6,366,510 7,955,486 15,869,058 25,769,300 9,900,242 19,402,790 12,116,376 15,322,050 30,409,349 15,087,299 25,769,300 The accompanying notes are an integral part of these financial statements. E3 6/2/2015 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Expenditures: Culture and Recreation: Project management 195,000 2014 342,472 (47,472) 2013 Park maintenance 1,430,514 1,430,514 1,182,186 Final Budget 1,302,895 Environmental sustainability 250,000 527,500 308,197 Variance 124,340 Art in public places Original Final 96,568 Positive 80,656 Total - Culture and Recreation Budget Budget Actual (Negative) Actual Revenues: Taxes: 5,692,496 20,477,130 6,304,130 14,173,000 7,627,363 Real estate transfer tax 3,900,000 5,900,000 6,849,449 949,449 4,725,589 Intergovernmental Revenue: 195,000 195,000 198,322 (3,322) 151,970 Lottery revenue 20,000 20,000 25,395 5,395 28,394 Other State revenue - 99,900 99,999 99 - Total - Intergovernmental Revenue 20,000 119,900 125,394 5,494 28,394 Charges for Services: Recreation amenities fee 10,000 338,000 338,341 341 13,939 Land lease to Vail Recreation District 132,014 132,014 128,913 (3,101) 126,758 Total - Charges for Services 142,014 470,014 467,254 (2,760) 140,697 Other: 4,890,970 16,848,758 16,848,758 - 16,427,967 Project reimbursements - 1,192,500 226,868 (965,632) 35,776 Donations - - 32,550 32,550 32,300 Interest on investments 33,712 33,712 147,973 114,261 27,670 Other - - 15,678 15,678 5,187 Total - Other 33,712 1,226,212 423,069 (803,143) 100,933 Total Revenues 4,095,726 7,716,126 7,865,166 149,040 4,995,613 Expenditures: Culture and Recreation: Project management 195,000 295,000 342,472 (47,472) 236,280 Park maintenance 1,430,514 1,430,514 1,182,186 248,328 1,302,895 Environmental sustainability 250,000 527,500 308,197 219,303 124,340 Art in public places 95,920 95,920 96,568 (648) 80,656 Total - Culture and Recreation 1,971,434 2,348,934 1,929,423 419,511 1,744,171 Public Works: Capital projects 5,692,496 20,477,130 6,304,130 14,173,000 7,627,363 Public Safety Fire suppression 195,000 195,000 198,322 (3,322) 151,970 Total Expenditures 7,858,930 23,021,064 8,431,875 14,589,189 9,523,504 Excess (Deficiency) of Revenues Over Expenditures (3,763,204) (15,304,938) (566,709) 14,738,229 (4,527,891) Other Financing Sources (Uses): Transfers in 1,836,318 (1,836,318) 4,948,682 Total Other Financing Sources (Uses) 1,836,318 (1,836,318) 4,948,682 Net Change in Fund Balances (3,763,204) (13,468,620) (566,709) 12,901,911 420,791 Fund Balances - January 1 4,890,970 16,848,758 16,848,758 - 16,427,967 Fund Balances - December 31 1,127,766 3,380,138 16,282,049 12,901,911 16,848,758 The accompanying notes are an integral part of these financial statements. E4 6/2/2015 Town of Vail, Colorado Special Revenue Funds Conference Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Revenues: Interest on investments Total Revenues Expenditures: Economic Development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers (out) Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances - January 1 Fund Balances - December 31 2014 2013 842,694 1,200 1,200 Final Budget 18,263 (828,212) Variance Original Final Positive Budget Budget Actual (Negative) Actual 1,200 1,200 19,463 18,263 14,482 1,200 1,200 19,463 18,263 14,482 842,694 1,200 1,200 19,463 18,263 (828,212) - (1,836,318) - 1,836,318 (4,948,682) - (1,836,318) - 1,836,318 (4,948,682) 1,200 (1,835,118) 19,463 1,854,581 (5,776,894) 93,290 1,942,890 1,942,890 - 7,719,784 94,490 107,772 1,962,353 1,854,581 1,942,890 The accompanying notes are an integral part of these financial statements. E5 6/2/2015 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Revenues: Permits and Licenses: Business licenses Other: Interest on investments Total Revenues Expenditures: Economic Development: Commission on Special Events Administration fee Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Fund Balances - January 1 Fund Balances - December 31 2014 2013 Original Variance and Final Positive Budget Actual (Negative) Actual 332,000 324,776 (7,224) 327,828 1,500 2,369 869 505 333,500 327,145 (6,355) 328,333 300,000 300,000 - 300,000 17,100 16,239 861 16,457 317,100 316,239 861 316,457 16,400 10,906 (5,494) 11,876 185,851 185,851 173,975 202,251 196,757 (5,494) 185,851 The accompanying notes are an integral part of these financial statements. E6 6/2/2015 Town of Vail, Colorado Special Revenue Funds Vail Local Marketing District Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Revenues: Taxes: Lodging tax Other: Interest on investments Total Revenues Expenditures: Economic Development: Destination Front Range Groups and meetings Marketing Special Events Purchased services Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Fund Balances - January 1 Fund Balances - December 31 2014 2013 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 2,600,000 2,600,000 2,796,770 196,770 2,619,172 2,000 2,000 636 (1,364) 316 2,602,000 2,602,000 2,797,406 195,406 2,619,488 954,342 954,342 876,285 78,057 749,324 380,000 407,000 412,736 (5,736) 416,945 570,000 570,000 512,921 57,079 447,799 352,000 382,975 421,545 (38,570) 326,652 120,000 155,000 132,500 22,500 112,560 423,658 493,658 493,347 311 448,377 2,800,000 2,962,975 2,849,334 113,641 2,501,657 (198,000) (360,975) (51,928) 309,047 117,831 1,144,570 1,413,521 1,413,521 - 1,295,690 946,570 1,052,546 1,361,593 309,047 1,413,521 The accompanying notes are an integral part of these financial statements. E7 6/2/2015 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Expenditures: Economic Development: Administration 67,700 2014 65,283 2,417 2013 Fiscal agent fees 2,200 2,200 2,200 Final Budget 2,200 Treasurer's fees 114,990 112,282 113,258 Variance 102,396 Professional fees Original Final 5,436 Positive 413 Vail Square Metro District Budget Budget Actual (Negative) Actual Revenues: 644,450 664,755 643,134 21,621 557,914 Taxes: Property tax 3,833,000 3,734,334 3,662,130 (72,204) 3,413,188 Other: 591,178 591,178 591,178 605,203 Interest on investments 41,000 2,000 1,219 (781) 1,714 Interest Subsidy (Build America Bonds) 167,614 167,614 167,524 (90) 166,259 Total Revenues 4,041,614 3,903,948 3,830,873 (73,075) 3,581,161 Expenditures: Economic Development: Administration 67,700 67,700 65,283 2,417 60,133 Fiscal agent fees 2,200 2,200 2,200 - 2,200 Treasurer's fees 114,990 112,282 113,258 (976) 102,396 Professional fees 25,000 25,000 5,436 19,564 413 Vail Square Metro District 434,560 457,573 456,957 616 392,772 Total Economic Development: 644,450 664,755 643,134 21,621 557,914 Debt Service: Principal 475,000 475,000 475,000 - 460,000 Interest 591,178 591,178 591,178 605,203 Total Debt Service: 1,066,178 1,066,178 1,066,178 - 1,065,203 Total Expenditures 1,710,628 1,730,933 1,709,312 21,621 1,623,117 Excess (Deficiency) of Revenues Over Expenditures 2,330,986 2,173,015 2,121,561 (51,454) 1,958,044 Other Financing Sources (Uses): Transfers out (3,950,000) (4,290,435) (3,049,280) 1,241,155 (1,842,286) Total Other Financing Sources (Uses) (3,950,000) (4,290,435) (3,049,280) 1,241,155 (1,842,286) Net Change in Fund Balances (1,619,014) (2,117,420) (927,719) 1,189,701 115,758 Fund Balances - January 1 6,544,057 6,851,969 6,851,969 - 6,736,211 Fund Balances - December 31 4,925,043 4,734,549 5,924,250 1,189,701 6,851,969 The accompanying notes are an integral part of these financial statements. E8 6/2/2015 SUPPLEMENTARY INFORMATION 6/2/2015 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Revenues: Other: Interest on investments Total Revenues Expenditures: Debt Service: Principal Interest Fiscal agent fees Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources: Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances - January 1 Fund Balances - December 31 2014 2013 Original Variance and Final Positive Budget Actual (Negative) Actual - 40 40 The accompanying notes are an integral part of these financial statements. F1 6/2/2015 40 (21,311) (21,311) - (21,311) (21,311) (21,311) (21,311) 40 21,311 21,311 - 21,271 - - 21,311 The accompanying notes are an integral part of these financial statements. F1 6/2/2015 Town of Vail, Colorado Enterprise Fund Timber Ridge Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (Non -GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2014 Income (Loss) Before Transfers Transfers In Change in Net Position - Budget Basis Reconciliation to GAAP Basis: Adjustments: Loan principal repayment to Capital Projects Fund Depreciation Net book value of disposed assets Capitalized assets Total Adjustments Change in Net Position - GAAP Basis 460,369 (866,803) (671,677) 195,126 460,369 (866,803) 6,769,631 6,769,631 6,097,954 6,964,757 345,966 (378,840) (5,249,646) 941,034 (4,341,486) 1,756,468 The accompanying notes are an integral part of these financial statements. F2 6/2/2015 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Operating Revenues: Rent 1,848,871 1,315,763 1,341,308 25,545 Ground lease - - 38,787 38,787 Other 14,774 16,658 5,136 (11,522) Total Operating Revenues 1,863,645 1,332,421 1,385,231 52,810 Operating Expenses: Operating expenses 762,175 689,933 627,977 61,956 Capital outlay 154,150 1,021,621 941,034 80,587 Total Operating Expenses 916,325 1,711,554 1,569,011 142,543 Operating Income (Loss) 947,320 (379,133) (183,780) 195,353 Non-operating Revenues (Expenses): Interest on investments 2,760 2,044 1,812 (232) Interest expense (143,745) (143,748) (143,743) 5 Loan principal repayment to Capital Projects Fund (345,966) (345,966) (345,966) - Total Non-operating Revenue (Expenses) (486,951) (487,670) (487,897) (227) Income (Loss) Before Transfers Transfers In Change in Net Position - Budget Basis Reconciliation to GAAP Basis: Adjustments: Loan principal repayment to Capital Projects Fund Depreciation Net book value of disposed assets Capitalized assets Total Adjustments Change in Net Position - GAAP Basis 460,369 (866,803) (671,677) 195,126 460,369 (866,803) 6,769,631 6,769,631 6,097,954 6,964,757 345,966 (378,840) (5,249,646) 941,034 (4,341,486) 1,756,468 The accompanying notes are an integral part of these financial statements. F2 6/2/2015 Town of Vail, Colorado Enterprise Fund Dispatch Services Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (Non -GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Operating Revenues: Charges and Fees: Dispatch service fee Dispatching contracts Other charges Total Operating Revenues Operating Expenses: Public Safety: Salaries and benefits Operating expenses Capital outlay Total Operating Expenses Operating (Loss) - Budget Basis Non-operating Revenues: Operating grant - E-911 Board Earnings on investments Total Non-operating Revenues Income (Loss) Before Transfers Transfers Out Change in Net Position - Budget Basis Reconciliation to GAAP Basis: Adjustments: Change in compensated absences Depreciation Net book value of disposed assets Capitalized assets Total Adjustments Change in Net Position - GAAP Basis (88) (204,333) 2,925 (201,496) (108,438) The accompanying notes are an integral part of these financial statements. F3 (6,642) (159,021) (151,255) 155,451 (161,467) (181,425) 6/2/2015 2014 2013 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 590,961 590,961 590,961 568,854 1,151,619 1,151,619 1,105,027 (46,592) 1,126,687 - 7,500 624 (6,876) 351 1,742,580 1,750,080 1,696,612 (53,468) 1,695,892 1,968,386 1,968,386 2,009,205 (40,819) 1,928,351 550,406 557,906 409,567 148,339 446,836 - 3,000 2,925 75 155,451 2,518,792 2,529,292 2,421,697 107,595 2,530,638 (776,212) (779,212) (725,085) 54,127 (834,746) 776,956 776,956 826,333 49,377 855,483 8,200 8,200 8,610 410 2,305 785,156 785,156 834,943 49,787 857,788 8,944 5,944 109,858 103,914 23,042 - (16,800) (16,800) - (43,000) 8,944 (10,856) 93,058 103,914 (19,958) (88) (204,333) 2,925 (201,496) (108,438) The accompanying notes are an integral part of these financial statements. F3 (6,642) (159,021) (151,255) 155,451 (161,467) (181,425) 6/2/2015 Town of Vail, Colorado Internal Service Funds Heavy Equipment Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (Non -GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Operating Revenues: Charges and Fees: Operating charges Replacement charges Total - Charges and Fees Other: Insurance reimbursements Other Total - Other Total Operating Revenues Operating Expenses: Public Works: Vehicle maintenance and fuel Capital outlay Total Operating Expenses Operating Income (Loss) - Budget Basis Non-operating Revenues: Earnings on investments Proceeds from sale of assets Total Non-operating Revenues Change in Net Position - Budget Basis Reconciliation to GAAP Basis: Adjustments: Contribution to other funds Net book value of disposed assets Depreciation Change in accrued compensated absences Capitalized assets Total Adjustments Change in Net Position - GAAP Basis (3,303) (656,744) (13,955) 734,910 60,908 (16,090) The accompanying notes are an integral part of these financial statements. F4 (1,924) (633,440) 2,401 784,968 152,005 23,470 6/2/2015 2014 2013 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 2,431,488 2,431,488 2,366,439 (65,049) 2,179,487 579,864 579,864 601,043 21,179 662,506 3,011,352 3,011,352 2,967,482 (43,870) 2,841,993 - 27,910 27,910 28,964 31,400 31,400 27,337 - 59,310 59,310 56,301 3,011,352 3,011,352 3,026,792 15,440 2,898,294 2,440,440 2,455,840 2,443,060 12,780 2,348,306 975,900 1,150,864 734,910 415,954 784,968 3,416,340 3,606,704 3,177,970 428,734 3,133,274 (404,988) (595,352) (151,178) 444,174 (234,980) 14,650 14,650 14,146 (504) 3,529 127,380 127,380 60,034 (67,346) 102,916 142,030 142,030 74,180 (67,850) 106,445 (262,958) (453,322) (76,998) 376,324 (128,535) (3,303) (656,744) (13,955) 734,910 60,908 (16,090) The accompanying notes are an integral part of these financial statements. F4 (1,924) (633,440) 2,401 784,968 152,005 23,470 6/2/2015 Town of Vail, Colorado Internal Service Funds Health Insurance Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 Operating Revenues: Charges and Fees: Insurance premiums Insurance premiums - Employee contributions Insurer proceeds Other Total Operating Revenues Operating Expenses: General Government: Health claims Premiums Administrative fees Short-term disability payments Total Operating Expenses Operating Income (Loss) Non-operating Revenues: Earnings on investments Change in Net Position The accompanying notes are an integral part of these financial statements. F5 6/2/2015 2014 2013 Original Variance and Final Positive Budget Actual (Negative) Actual 3,170,000 3,150,000 (20,000) 3,023,458 545,000 586,472 41,472 505,770 300,000 714,932 414,932 271,235 - - - 449.00 4,015,000 4,451,404 436,404 3,800,912 3,450,227 2,655,106 795,121 2,876,945 612,246 562,643 49,603 488,535 45,000 44,759 241 20,000 20,000 - 20,000 3,873 4,127,473 3,262,508 864,965 3,389,353 (112,473) 1,188,896 1,301,369 411,559 10,000 20,224 10,224 3,483 (102,473) 1,209,120 1,311,593 415,042 The accompanying notes are an integral part of these financial statements. F5 6/2/2015 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Position December 31, 2014 Heavy Health Equipment Insurance Assets: Current Assets: Equity in pooled cash and investments 1,891,229 2,552,967 4,444,196 Accounts receivable, net of allowance for uncollectibles 5,704 18,804 24,508 Inventory 287,091 - 287,091 Total Current Assets 2,184,024 2,571,771 4,755,795 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation 3,531,331 - 3,531,331 Total Assets 5,715,355 2,571,771 8,287,126 Liabilities: Current Liabilities: Accounts payable 46,805 235,997 282,802 Accrued salaries and wages 28,885 - 28,885 Current portion of compensated absences 21,780 - 21,780 Total Current Liabilities 97,470 235,997 333,467 Non-current Liabilities: Compensated absences, net of current portion 32,669 - 32,669 Total Liabilities 130,139 235,997 366,136 Net Position: Invested in capital assets, net of related debt 3,531,331 - 3,531,331 Unrestricted 2,053,885 2,335,774 4,389,659 Total Net Position 5,585,216 2,335,774 7,920,990 The accompanying notes are an integral part of these financial statements. F6 6/2/2015 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2014 Operating Revenues: Charges for services - Internal Charges for services - External Insurance reimbursements Other Total Operating Revenues Operating Expenses: Operations Health claims and premiums Depreciation Total Operating Expenses Operating Income (Loss) Non-operating Revenues (Expenses): Gain (loss) on disposal of assets Investment income Total Non-operating Revenues (Expenses) Change in Net Position Net Position -January 1 Net Position - December 31 Heavy Health Equipment Insurance 2,967,482 3,150,000 6,117,482 - 586,473 586,473 27,910 714,932 742,842 31,400 - 31,400 3,026,792 4,451,405 7,478,197 2,457,014 44,759 2,501,773 - 3,217,749 3,217,749 656,744 656,744 3,113,758 3,262,508 6,376,266 (86,966) 1,188,897 1,101,931 56,730 - 56,730 14,146 20,224 34,370 70,876 20,224 91,100 (16,090) 1,209,121 1,193,031 5,601,306 1,126,653 6,727,959 5,585,216 2,335,774 7,920,990 The accompanying notes are an integral part of these financial statements. F7 6/2/2015 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2014 Cash Flows From Operating Activities: Cash received from other funds Other cash receipts Cash paid for goods and services Cash paid to employees Net Cash Provided (Used) by Operating Activities Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets Acquisition and construction of capital assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows From Investing Activities: Interest on Investments Net Cash Provided (Used) by Investing Activities Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in inventory Increase (decrease) in accounts payable Increase (decrease) in accrued wages and benefits Total Adjustments Net Cash Provided (Used) by Operating Activities Heavy Health Equipment Insurance 2,967,482 3,150,000 6,117,482 59,355 1,289,913 1,349,268 (1,644,871) (3,262,253) (4,907,124) (928,905) - (928,905) 453,061 1,177,660 1,630,721 60,034 60,034 (734,910) - (734,910) (674,876) - (674,876) 14,146 20,224 34,370 14,146 20,224 34,370 (207,669) 1,197,884 990,215 2,098,898 1,355,083 3,453,981 1,891,229 2,552,967 4,444,196 (86,966) 1,188,897 1,101,931 656,744 - 656,744 45 (11,492) (11,447) 23,064 - 23,064 (145,207) 255 (144,952) 5,381 - 5,381 540,027 (11,237) 528,790 453,061 1,177,660 1,630,721 The accompanying notes are an integral part of these financial statements. F8 6/2/2015 The accompanying notes are an integral part of these financial statements. F9 6/2/2015 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 2014 2013 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CB1010 Fire Infrastructure / Main Vail Fire Stn - - - 1,192,966 CB1018 Info Center Remodel 1,536,383 1,323,165 213,218 18,186 CB1021 Donovan Park Pavilion 58,670 38,830 19,840 41,330 CEP001 Fire Truck Purchase 620,900 618,017 2,883 42,426 CEP002 Hybrid Bus Battery Replacement 385,000 - 385,000 - CEP003 Repower Buses 55,000 - 55,000 - CEP004 Replace Buses 60,000 9,520 50,480 5,280 CEP005 Hardware Purchases 238,840 238,840 - 50,000 CEP006 Radio Replacement 176,000 173,808 2,192 - CEP007 Phone System Upgrade 142,919 142,919 - 68,398 CEP008 Parking Entry System 733,000 630,347 102,653 - CEP010 Network Upgrades 40,000 40,045 (45) 62,482 CEP011 Document Imaging 47,664 47,664 - 30,021 CEP017 Radio Tower Equipment 5,900 5,900 - CEP018 Web and E-commerce 13,829 13,829 5,950 CEP019 Computer -Aided Dispatch (CAD/RMS) 61,767 61,767 - 112,551 CEP022 Audio Visual 134,599 135,513 (914) 49,882 CEP023 Video cameras patrol cars - - - 59,077 CEP024 Police E -Ticketing System 35,000 34,972 28 - CEP030 Vehicle expansion 321,000 321,270 (270) - CEP031 Software Licensing 48,000 46,195 1,805 50,048 CEP033 Data Centers / Computer Rooms 15,000 14,926 74 6,695 CEP035 Comm Dev Arc/GIS System 14,000 - 14,000 - CEP036 Business Systems 190,218 72,175 118,043 437,355 CEP039 Emergency Operations Center - Stn 3 - - - 29,309 CEP040 Transit Center Generator 200,000 200,000 - CEP041 Live Scan Fingerprint Equipment - - - 26,232 CHP001 Buy -Down Program 1,086,932 202,607 884,325 - CHP005 Creekside Housing Improvements - - - (1,678) CHP007 Timber Ridge Legal / Zoning 15,604 11,177 4,427 9,397 CHP008 Rational Nexus Study 225,000 159,938 65,062 - CHP019 Housing Market Study 12,550 11,300 1,250 - CMT003 Bus Shelter Replacement Program 30,000 274 29,726 29,331 CMT004 Capital Street Maintenance 981,200 764,977 216,223 656,606 CMT005 Facility Capital 603,563 416,284 187,279 470,213 CMT007 Parking Structure Maintenance 620,000 610,682 9,318 418,820 CMT008 Muni Building Site Design 43,343 45,419 (2,076) 22,427 CMT009 Environmental Improvements 566,124 434,875 131,249 148,433 CMT012 Flood Repairs 105,436 - 105,436 42,900 COT002 Street Light Improvement Program 296,000 151,047 144,953 47,716 COT004 Fiber -Optics in Buildings 173,726 95,691 78,035 25,950 COT018 Chamonix Area Plan - 5,176 (5,176) - COT023 Covered Bridge Repairs - 20 (20) - CSC015 CDOT Required Parking Imp 218,000 140,859 77,141 481,166 CSCO16 Guest Services Enhancements 3,161,947 1,825,798 1,336,149 300,780 CSR007 Neighborhood Road Reconstruction 25,000 - 25,000 - CSR008 Neighborhood Bridges 300,000 - 300,000 383,500 VRA002 LionsHead Welcome Center - VRA Funded 68,887 31,848 37,039 25,649 VRA004 Library Remodel - VRA Funded - - - 238,371 VRA005 East LionsHead Portal - VRA Funded 25,000 9,339 15,661 122,687 VRA006 West LionsHead Portal - VRA Funded - - - 70,792 VRA007 Guest Services Enhancements - VRA Funded 39,836 VRA008 Sun Bird Park at Lionshead - - - 965,719 VRA009 Lionshead Parking Entry 2,164,962 1,891,915 273,047 130,038 VRA010 1-70 Underpass 1,631,586 970,994 660,592 188,414 VRA011 Lionshead Medians 50,000 7,004 42,996 - Total 17,538,549 11,756,926 5,781,623 7,105,256 The accompanying notes are an integral part of these financial statements. F9 6/2/2015 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 With Comparative Actual Amounts For the Year Ended December 31, 2013 The accompanying notes are an integral part of these financial statements. F10 6/2/2015 2014 2013 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CCF001 Golf Clubhouse Redevelopment 6,268,629 207,282 6,061,347 376,549 CCF002 Ford Park Fields Redevelopment 4,080,792 3,552,113 528,679 4,754,829 CCF003 Ford Park Amphitheater - - - 1,213,041 RFP005 Alpine Gardens Contribution 65,620 65,620 65,620 RFP006 Ford Park Management Plan - - - 68,655 RFP009 Ford Park - Improvements 450,000 52 449,948 - RFP017 Ford Park Portal Improvements 250,000 - 250,000 RFP017 Ford Park Parking Lot Slope Revegetation 100,000 100,000 - RMG002 Environmental: Solid Waste - - 25,294 RMG003 Environmental: Ecosystem Health 14,488 RMG004 Environmental: Public Education 14,802 RMG005 Environmental: Energy & Transportation - - - 19,851 RMG008 Walking Mountains Actively Green 37,000 18,500 18,500 - RMT013 Environmental Sustainability - - - 5,657 RMT001 Recreation Path Maintenance 104,796 84,755 20,041 33,196 RMT002 Tree Maintenance 65,000 58,946 6,054 81,255 RMT005 Street Furniture - Streetscape 325,000 74,980 250,020 75,025 RMT006 Eagle River Watershed Programs 86,000 37,972 48,028 38,000 RMT008 West Vail Community Garden 18,500 18,500 - - RMT009 Park/Playground Capital Maintenance 128,838 126,614 2,224 50,662 RMT016 Ford Park / Tennis Center Improvements 12,270 371 11,899 - RMT018 Dobson Ice Arena 144,475 144,475 - 31,780 RMT019 Gymnastics Center 50,000 49,606 394 - RMT024 Athletic Fields 15,604 - 15,604 - RMT027 Golf Course - Other Impr 834,092 751,891 82,201 114,292 RMT028 Flood Repairs 847,795 43,252 804,543 83,037 RPDO05 Donovan Park - Lower Bench 5,000 - 5,000 - RPD011 Skate park 335,000 50,534 284,466 - RPD012 Booth Creek Playground & Park 385,250 13,077 372,173 - RPD014 Public Restrooms 511,174 - 511,174 34,094 RPDO15 Booth Creek Park Redevelopment 512,000 - 512,000 7,728 RP1006 Streamtract Improvements 1,684,834 84,972 1,599,862 15,166 RP1007 Water Quality/ Storm Water 449,900 327,681 122,219 - RPT007 Trailhead Signs/Development - (21) 21 - RPT010 Frontage Road Bike & Ped Paths 500,000 173,692 326,308 410,972 RPT011 Bike Lanes: N Frontage Rd 1,500,000 347,384 1,152,616 - RPT019 Library Recreation Path 240,000 3,420 236,580 - RRT001 Public Art 390,831 37,282 353,549 81,870 RRT006 Public Art - Winterfest 78,730 31,180 47,550 11,500 Total 20,477,130 6,304,130 14,173,000 7,627,363 The accompanying notes are an integral part of these financial statements. F10 6/2/2015 LOCAL HIGHWAY FINANCE REPORT 6/2/2015 The nublic report burden for this information collection is estimated to averaee 380 hours annually, Financial Planning 02/01 Foran # 350-050-36 LOCAL HIGHWAY FINANCE REPORT City or County: Vail YEAR ENDING: December 2014 This Information From The Records Of Town of Vail: Prepared By: Kathleen Halloran Phone: 970-479-2116 L DISPOSITION OF HIGHWAY -USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM A. Local Motor -Fuel Taxes B. Local C. Receipts from Motor -Vehicle State Highway- Taxes User Taxes D. Receipts from Federal Highway Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonbighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes IL RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway -user taxes 1. Ca ital outlay from page 2) 1,716,663 a. Motor Fuel from Item I.A.5. 2. Maintenance: 2,110,394 b. Motor Vehicle from Item I.B.5. 3. Road and street services: c. Total a.+b. a. Traffic control operations 307,276 2. General fund appropriations 5,086,506 b. Snow and ice removal 1,232,010 3. Other local imposts from page 2 960,705 c. Other 4. Miscellaneous local receipts from page 2) 0 d. Total (a. through c.) 1,539,286 5. Transfers from toll facilities 4. General administration & miscellaneous 289,276 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 1,243,667 a. Bonds - Original Issues 6. Total 1 through 5 6,899,286 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total a. + b. + c. 0 a. Interest 7. Total 1 through 6 6,047,211 b. Redemption B. Private Contributions 608,157 c. Total (a.+ b. C. Receipts from State government from page 2 243,918 2. Notes: a. Interest D. Receipts from Federal Government from paize 2) - b. Redemption c. Total (a.+ b. E. Total receipts (A.7 + B + C + D) 6,899,286 3. Total (l.c + 2.c) C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 6,899,286 1V. LOCAL HIGHWAY DEBT STATUS Show all entries atpar) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 1. Bonds (Refunding Portion B. Notes (Total) 0 V. LOCAL ROAD AND STREET FUND BALANCE A. T3eginning BeginningBalance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 6,899,286 6,899,286 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) F11 6/2/2015 LOCAL HIGHWAY FINANCE REPORT STATE: Colorado YEAR ENDING (mm/yy): December 2014 1I. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f Charges for Services 5. Specific Ownership &/or Other 960,705 g. Other Misc. Receipts 6. Total (1. through 5.) 960,705 h. Other c. Total (a. + b.) 960,705 i. Total (a. through h.) 0 (Carry forward to page 1) (Carry forward to page 1) ITEM AMOUNT ITEM AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway -user taxes 215,067 1. FHWA (from Item LD.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 28,851 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 28,851 g. Total (a. through f) 0 4. Total (I. + 2.+ 3.f) 243,918 3. Total (I.+ 2.g) (Carey forward to page 1) 111. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY SYSTEM SYSTEM a) ) TOTAL (c) A.L. Capital outlay: a. Right -Of -Way Costs 0 0 b. Engineering Costs 1,015,864 1,015,864 c. Construction: (1). New Facilities 0 2). Capacity Improvements 0 (3). System Preservation 700,799 700,799 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4) 0 700,799 700,799 d. Total Capital OutlayLines La. + I.b. + I.c,5 0 1,716,663 1 1,716,663 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE F12 6/2/2015 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE 6/2/2015 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, II and III December 31, 2014 G1 6/2/2015 TABLE TABLE III Vail Reinvestment Authority History of Pledged Revenues 2010 2011 2012 2013 2014 Pledged Revenues 2,008,642 3,129,789 3,173,261 3,188,389 3,373,916 2009/2010 TABLE II 2011/2012 2012/2013 2013/2014 Vail Reinvestment Authority History of Assessed Valuations 46.9000 46.9400 46.2540 Valuation Valuation Total Assessed Percent Allocable Allocable Levy Year Collection Year Valuation Change to Base to Increment 2009 2010 170,216,530 52.7070 104,994,570 65,221,960 2010 2011 146,890,960 -13.7% 83,473,630 63,417,330 2011 2012 146,243,940 -0.4% 83,179,120 63,064,820 2012 2013 166,325,430 13.7% 94,467,810 71,857,620 2013 2014 162,091,770 -2.5% 90,762,320 71,329,450 G1 6/2/2015 TABLE III Mil Levies Affecting Property Owners within the Vail Reinvestment Authority Plan Area Tax Areas 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 202 44.2270 46.9000 46.9400 46.2540 47.0140 203 42.8120 45.2900 45.3560 44.7780 45.4720 204 52.7070 61.1100 61.1170 60.1000 60.8760 206 44.2270 46.9000 46.9400 46.2540 47.0140 207 84.2270 86.9000 86.9400 86.2540 87.0140 208 69.2270 71.9000 71.9400 71.2540 72.0140 216 69.2270 - - - - 225 109.2270 G1 6/2/2015 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables IV and V December 31, 2014 Total 162,091,770 TABLE V 2014 Preliminary Assessed Valuation of Classes of Property in the Authority Class Residential Commercial Vacant State Assesseed Total Total Assessed Valuation 115,204,480 46,133,730 637,060 116,500 162,091, 770 Percentage of Total Assessed Valuation 71% 28% 0% 0% 100% G2 6/2/2015 TABLE IV Largest Taxpayers in the Authority 2014 Preliminary Percentage of Total Taxpayer Name Assessed Valuation Assessed Valuation Public Service Co of Colorado (XCEL) 19,368,050 11.9% Holy Cross Electric Association Inc 18,885,670 11.7% Diamondrock LLC 18,056,060 11.1% Ritz-Carlton Development Co Inc 9,874,110 6.1% Arrrabelle at Vail Square LLC 7,682,370 4.7% Lionshead Inn LLC 3,533,230 2.2% Vail Corp 2,878,600 1.8% A Belle Vail Co LLC 2,624,290 1.6% Eagle River Water & Sanitation District 2,358,260 1.5% RCR Vail LLC 2,291,090 1.4% Total 162,091,770 TABLE V 2014 Preliminary Assessed Valuation of Classes of Property in the Authority Class Residential Commercial Vacant State Assesseed Total Total Assessed Valuation 115,204,480 46,133,730 637,060 116,500 162,091, 770 Percentage of Total Assessed Valuation 71% 28% 0% 0% 100% G2 6/2/2015 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table VI December 31, 2014 TABLE VI History of Revenues, Expenditures and Changes in Fund Balance Vail Reinvestment Authority Revenues: Other: Property tax Interest on investments Interest Subsidy (Build America Bonds) Total Revenues Expenditures: Economic Development: Administration Fiscal agent fees Office supplies Treasurer's fees Professional fees Vail Square Metro District Capital Outlay Total Economic Development: Debt Service: Principal Interest Total Debt Service: Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Debt proceeds Issuance costs Issuance premium Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances - January 1 Fund Balances - December 31 2,370,229 3,366,594 3,971 35,873 - 194,165 2,374,200 3,596,632 39,906 57,706 - 2,200 71,113 101,001 - 2,125 365,558 466,843 1,859 - 478,436 629,875 - 250,000 2,637,172 676,675 15,229,105 926,675 478,436 1,556,550 1,895,764 2,040,082 11,940,000 - (236,893) 166,259 63,427 3,576,929 (1,070,365) (7,125,196) 10,696,169 (7,125,196) 12,591,933 (5,085,114) 2,637,172 15,229,105 15,229,105 10,143,991 3,383,493 3,413,188 3,662,129 12,817 1,714 1,219 180, 618.64 166,259 167,524 3,576,929 3,581,161 3,830,872 59,352 60,133 65,282 - 2,200 2,200 101,512 102,396 113,259 1,535 413 5,435 403,668 392,772 456,957 566,067 557,914 643,134 445,000 460,000 475,000 618,778 605,203 591,178 1,063,778 1,065,203 1,066,178 1,629,845 1,623,117 1,709, 312 1,947,083 1,958,044 2,121,559 (5,354,864) (1,842,286) (3,049,280) (5,354,864) (1,842,286) (3,049,280) (3,407,780) 115,758 (927,720) 10,143,991 6,736,211 6,851,969 6,736,211 6,851,969 5,924,249 G3 6/2/2015 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables VII and VIII December 31, 2014 Outstanding Revenue Obligations Issue Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B Total Outstanding Principal 2,040,000 8,270,000 10,310,000 G4 6/2/2015 TABLE VII 2014 Budget Summary and Actual Comparison / 2015 Budget Vail Reinvestment Authority 2014 Amended 2014 2015 Budget Actual Budget Revenues: Other: Property tax 3,742,725 3,662,129 3,636,000 Interest on investments 2,000 1,219 36,632 Interest Subsidy (Build America Bonds) 167,614 167,524 173,343 Total Revenues 3,912,339 3,830,872 3,845,975 Expenditures: Economic Development: Administration 67,700 65,282 63,760 Fiscal agent fees 2,200 2,200 2,200 Treasurer's fees 115,702 113,259 109,080 Professional fees 25,000 5,435 25,000 Vail Square Metro District 457,573 456,957 434,560 Total Economic Development: 668,175 643,134 634,600 Debt Service: Principal 475,000 475,000 490,000 Interest 591,178 591,178 577,928 Total Debt Service: 1,066,178 1,066,178 1,067,928 Total Expenditures 1,734,353 1,709,312 1,702,528 Excess (Deficiency) of Revenues over Expenditures 2,177,986 2,121,560 2,143,447 Other Financing Sources (Uses): Transfers out (4,290,435) (3,049,280) (4,050,000) Net Change in Fund Balances (2,112,449) (927,720) (1,906,553) Fund Balances - January 1 6,852,089 6,852,089 4,739,640 Fund Balances - December 31 4,739,640 5,924,369 2,833,087 Outstanding Revenue Obligations Issue Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B Total Outstanding Principal 2,040,000 8,270,000 10,310,000 G4 6/2/2015 TOWN OF VAIN VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Vail Golf and Nordic Clubhouse Project Update PRESENTER(S): Greg Hall, Director of Public Works Town of Vail, Chris Penney, NV5 Inc., Project Owners Representative, Tim Losa and Zehren and Associates Inc., Project Architect ACTION REQUESTED OF COUNCIL: No action is requested at this time. This is an update on the progress of the project since the last town council project update on March 3. 2015. BACKGROUND: The update on the Golf and Nordic Center remodel project will include the following items: Project progress Presentation of DRB approved plans and exterior renderings Presentation of proposed interior finishes and interior renderings Project schedule and public outreach STAFF RECOMMENDATION: No recommendation ATTACHMENTS: Staff Memo PowerPoint 6/2/2015 0 rowN of vain Memorandum TO: Vail Town Council FROM: Stan Zemler Town Manager, Greg Hall, Director of Public Works and Transportation Chris Penney NV5, Tim Losa, Zehren and Associates DATE: June 2, 2015 SUBJECT: Vail Golf and Nordic Clubhouse Remodel Project Update PURPOSE The purpose of this item is to present an update on the Golf and Nordic Center remodel project. • Project progress • Presentation of DRB approved plans and exterior renderings • Presentation of proposed interior finishes and interior renderings • Project schedule and public outreach • Series of next steps for advancing the project forward II. BACKGROUND The Golf Course and Nordic Center Clubhouse remodel project is a partnership between the Town of Vail (TOV) and the Vail Recreation District (VRD). The project envisions a significant remodel of the existing clubhouse and a modest addition to provide a banquet room space and support areas. The project is being funded with a portion of the conference center fund ballot initiative which was approved by voters in the fall of 2011. The Town of Vail (TOV) has hired NV5 to provide owner's representation services for the Golf and Nordic Clubhouse Project, Zehren and Associates Inc.to provide the architectural design and Evans Chaffee Construction Group (ECCG) to provide Construction Manager/General Contracting Services (CM/GC). III. CURRENT PROJECT ACTIVITIES The following is a summary of the work progress on the Vail Golf and Nordic Clubhouse remodel project and status since the March 3, 2015 Vail Town Council update: Design Consultant: 1. Zehren and subconsultants fully contracted and engaged 2. Pending requests for proposals for commissioning agent and photovoltaic options. 3. Provide additional scope of service proposals and execute as required for project completion, if needed. Kitchen Consultant: 1. A Request for Qualifications and Proposals was issued on February 10, 2015. The distribution included six potential candidates. 6/2/2015 2. Kitchen Consultant competitive selection process completed. W West was selected as the lowest, responsible bidder. 3. Input from local catering companies was requested regarding the catering kitchen components. 4. W. West prepared the design for kitchen and support areas for the grille and catering kitchens. 5. Kitchen Equipment budget prepared based on the preliminary kitchen design and is currently being reviewed. Construction Management/General Contractor (CMGC) Selection and Preconstruction Services: 1. Evans Chaffee Construction Group (ECCG) was competitively selected as the Construction Management/General Contractor (CMGC) from a group of five respondents. 2. The Town attorney is reviewing contract for preconstruction services. 3. ECCG is completing a construction estimate of the 100% Design Development plan set. 4. ECGC is providing an updated construction schedule which correlates to NV5's master project schedule. Temporary Structure: 1. The project team determined to utilize a rented mobile office which will be the most economical solution. In doing so, the Owner has accepted the following conditions: a. The trailer will have two restrooms, supplemented by the Starter Shack for the golf season. Additional/temporary restroom facilities may be needed for larger Golf and Nordic events. b. The trailer will meet the square footage needs for golf and Nordic, but some additional offsite storage may be necessary for retail back stock. This is being considered at Public Works. 2. The Town of Vail has reserved the modular building and is evaluating the Town of Vail code requirements. 3. Design team has been engaged to prepare the necessary documents for Design Review Board Approval entitlement submittals (preliminary PEC approval and Conditional Use Permit have been previously received). 4. Submit for Design Review Board Approval. 5. Design Review Board Meeting July 1, 2015. 6. Evans Chaffee Construction Group will price the temporary clubhouse work, including sitework and interior finishes. 7. Finalize Building Permit submittal package. Design/Schedule: 1. Final Design Review Board Approval received May 6, 2015. 2. 100% Design Development completed May 13, 2015. 3. The design schedule will require a diligent effort to stay on task, but a permit is anticipated by mid-August, in preparation for construction start on September 8, 2015. V. PROJECT NEXT STEPS E 6/2/2015 a. Apply to Design Review Board for Temporary Clubhouse facilities approval. b. Begin FF&E selection process (Zehren has been engaged for this service). c. Provide public information regarding the approved design and project components. d. Host multiple public information meetings in the July timeframe regarding construction. e. Continue to update the cost estimate as design progresses and manage risk with alternates and value engineering log tabulations. f. Complete the project construction documents. g. Submit for the necessary building and other necessary permits for both the clubhouse and temporary facilities. h. Begin construction in September 2015. i. Complete the construction within 10-12 months. VI. ACTION REQUESTED No Town Council action is requested at this time. VII. ATTACHMENTS a) Powerpoint presentation 3 6/2/2015 &�N'J �ls III 0 Iii 0 At* 771 0 Iii 0 Vail Golf and Nordic Clubhouse PLA)Ijr- Greg Hall Director of Public Works and Transportation Office: 1.9 70.4 79.2160 ghall@vailgov.com Town of Vail I Public Works j 06/02/2015 6/2/2015 Vail Golf and Nordic Clubhouse • Design Consultants: • Kitchen Consultant: • Construction Management/General Contractor (CMGC) Selection and Preconstruction Services: • Temporary Structure: • Design/Schedule: Town of Vail I Public Works l 06/02/2015 6/2/2015 3 Vail Golf and Nordic Clubhouse Town of Vail I Public Works l 06/02/2015 6/2/2015 V J Vail Golf and Nordic Clubhouse D�VE1 f E�v:EJ �1vJfrr-Pf rJDDf -P1 V J Town of Vail I Public Works l 06/02/2015 6/2/2015 6 Vail Golf and Nordic Clubhouse Town of Vail I Public Works l 06/02/2015 6/2/2015 Vail Golf and Nordic Clubhouse COLOR- CERTNWEATHMERED WOODI EREDE DSR/iE TL � ATlJ9 METALRDOF-DDra� sEAM oDLaL-Surf DREY 9lpTTFRBAND DOWNSFoI%T9 GD'_OR-EIATE GNEY LOUVF7'S-GVP"APMNU COLOR -8R SIERRA�ROM 4 CONCRETE PATp eIELD mLGR-DAYre;TSAe sEauowsAND IIORDERGGLGR- Dnvls aeeo Dae3L.E3rGNE y� ■ Sio4P DRILL- TID LOCJ�TgN 6EYOND FlELOGDLOR -DREAM HVORD1ECx PAVER SORDERCOL{M DAVIS.IiBAO R"NRER COMI�ACIAL DOOR 8 WINDOW COLOR - BflONZE SIERPA PACIFIG>i0.2f REDSEw N-WZR UO S SHIP ORR LIGHT OAK erar FNISH REO RS I ROUGH SAWNTRIM PORTERS TRPN8PMFM FN18H GCLOR-MBDS DOHT DAIi 3TUOCA WEATHERL rc EMODTR COLOR-DRYVIT MORASIERY BROWN MI TELLURIDE SRJNE LOMPANY CALOR -ASPEN BLEND S< � J Town of Vail I Public Works l 06/02/2015 6/2/2015 8 Vail Golf and Nordic Clubhouse u J Town of Vail I Public Works l 06/02/2015 6/2/2015 9 Vail Golf and Nordic Clubhouse Town of Vail I Public Works l 06/02/2015 6/2/2015 10 Vail Golf and Nordic Clubhouse 116 U Town of Vail I Public Works l 06/02/2015 6/2/2015 11 Vail Golf and Nordic Clubhouse Town of Vail I Public Works l 06/02/2015 6/2/2015 Vail Golf and Nordic Clubhouse Town of Vail I Public Works l 06/02/2015 6/2/2015 13 Vail Golf and Nordic Clubhouse Town of Vail I Public Works l 06/02/2015 6/2/2015 14 Vail Golf and Nordic Clubhouse 1r�__�jD, r� ,fjL Town of Vail I Public Works l 06/02/2015 6/2/2015 15 Vail Golf and Nordic Clubhouse 1r�__�jD, r� ,fjL Town of Vail I Public Works l 06/02/2015 6/2/2015 16 Vail Golf and Nordic Clubhouse 1n Df rIni,�ij Floor Finish Plan Pro Shop & Golf Entry Not to Scale Stone Box Porcelain Floor Tile Millwork Stain Color Retail Display Concept Images Intertace Pin Line Sage Carpet Tiles DuChatearr Vinyl Wood Floors ftm,(veiAND ASSOCIATES, DSC. Town of Vail I Public Works j 06/02/2015 Accent Colored Barnwood Pro Shop & Golf Entry Interior Design N2 May d, 2015 . . .. TOWN U VA10 >u 0 LLI ce LLI 0 2 m U _U 0 z Z I.L. 1 0 �I Q 7 6/2/2015 17 Vail Golf and Nordic Clubhouse I LIP 1 - _ f � Floor Finish Pian Locker Roonu Not to Scale Locker Room Concept images i Stone Box Porcelain Millwork Stain Tota Touchless Faucet Floor Tile Color Century Keramos Lindos [quartz Countertops Kohler Undermount Single Lyric Branch Porcelain Wall Tile Sink Sconce Locker Roorns A...e.a..R ENO NDCIATES� C. Interior Design I 732 ruwA OF vx' iii LJ.[ 0 LLI ne L LI U*) 0 2 m _U Ce 0 10 Z LL. 1 +0 V �I 7 Town of Vail I Public Works j 06/02/2015 6/2/2015 18 Vail Golf and Nordic Clubhouse r�11D� J��fjjr L1'Jf)nommossim- -.---_-- �.'----------------- li Floor Finish Plan Golf Bar and Grill Not to Scale DuChateau Vinyl Wood Floors p E H— IS I -Pu --AS CIA—I — Millwork Stain Calor Slab Bar Countertop t.a _ L ii 1 �.i INN, 1.7 2t L_� Interior Perspective Iron Chandelier Golf Bar & Grill Concept Image Golf Bar & Grill Interior Design 732 ruwti uFaxil• Town of Vail I Public Works j 06/02/2015 6/2/2015 19 loll —oil Floor Finish Plan Golf Bar and Grill Not to Scale DuChateau Vinyl Wood Floors p E H— IS I -Pu --AS CIA—I — Millwork Stain Calor Slab Bar Countertop t.a _ L ii 1 �.i INN, 1.7 2t L_� Interior Perspective Iron Chandelier Golf Bar & Grill Concept Image Golf Bar & Grill Interior Design 732 ruwti uFaxil• Town of Vail I Public Works j 06/02/2015 6/2/2015 19 Vail Golf and Nordic Clubhouse Floor Finish Plan Restrooms Not to Scale Stone Bou Porcelain Floor Tile Century Keranlos Lindos Porcelain Wall Tile .o....A.R E�eAIam�..yre�ASSOCIATES, II,�C.. NT Single Lyric Branch Sconce Millwork Stain Color e° Slab Countertops i Kohler Undermount Toto Touchless Sink Faucet wallcovering Vanity Concept Image Restrooms Interior Design May 6. 2015 T." llF VAfd% >u 0 LLI ce LLI n 0 m U _U 0 Z z z I.L. 1 /0 V �I 7 Town of Vail i Public Works i 06/02/2015 6/2/2015 20 Vail Golf and Nordic Clubhouse r1D� fjjr L1'Jtjfj:� --------- o - r .\ - Iron — �=tn Chandelier Floor Finish Plan Pre -Function & Banquet Roo1n Not to Scale Millwork Stain Color Interior Elevation Banquet Rooin Not to Scale Interior Elevation Banquet Room Not to Scale Interface Whole Earth Carpet Border DuChateau Wallcover ng Interior Door Carpet Tiles Vinyl Wood Floors Style Krueger Pre -Function & Banquet m u. �R E b rLi'D AS522 TES, C. ,, m ePmitaurun..,��..� Town of Vail I Public Works l 06/02/2015 Interior Design NIaV 6. 201 - - Tllri'7! 6F V.l LLI tri 0 2 U _U Ce Q Z z S LL +Q V �1 Q 7 6/2/2015 21 Vail Golf and Nordic Clubhouse • Apply to Design Review Board for Temporary Clubhouse facilities approval. • Begin FF&E selection process • Provide public information regarding the approved design and project components. • Host multiple public information meetings in the July timeframe regarding construction. • Continue to update the cost estimate as design progresses and mange risk • Complete the project construction documents. • Submit for the necessary building and other permits for clubhouse and temporary facilities. • Begin construction in September 2015. • Complete the construction within 10-12 months. Town of Vail I Public Works l 06/02/2015 6/2/2015 22 16 1. It Til ''1•d��.�,� I L jI� �'��� � � Y ' nu�� All, Is Towx of vn' 1[1 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Recreational Marijuana Public Hearing. The purpose of this public hearing is to provide the Vail Town Council with an update on recreational marijuana in Colorado 18 months after its legalization and to receive direction from the Town Council on what steps, if any, the Town Council wishes to take in establishing a policy for regulating recreational marijuana establishments within the community. PRESENTER(S): George Ruther, Director of Community Development ACTION REQUESTED OF COUNCIL: The Vail Town Council needs to create a policy on the sale/operation of recreational marijuana facilities for the Town of Vail. To effectively do so, the Town Council must ultimately answer two fundamental questions: 1. Should the recreational sale/operation of recreational marijuana facilities be allowed in the Town of Vail? 2. If allowed, how are recreational sales/operations best accomplished? BACKGROUND: The Town of Vail has not taken a final position on an adopted policy on the operation of retail marijuana establishments. Instead, a temporary ban (Ordinance No. 12, Series of 2014) has been placed on the operation of retail marijuana establishments in Vail pending the outcome of a larger, community -wide policy discussion. The ban is in effect until August 4, 2015 and may be shortened or lengthened if necessary. STAFF RECOMMENDATION: The Town staff recommends the Vail Town Council provides policy direction this issue. To facilitate the discussion, two questions relating to policy were identified in Section II of the staff memorandum. Pending answers to the policy questions, there appears to be several options for consideration. 1. Ban retail sales of recreational marijuana in the Town of Vail 2. Allow for the retail sale of recreational marijuana and formulate implementation strategies to be adopted into regulation 3. Ban the retail sales of recreational marijuana but formulate implementation strategies to be adopted into regulation that allow for legal recreational marijuana consumption ATTACHMENTS: Town Council Memorandum Annual Update Status Report The Impact - 2015 Preview 6/2/2015 0) rowN of VaiL Memorandum To: Vail Town Council From: George Ruther, Director of Community Development Date: June 2, 2015 Subject: Colorado Recreational Marijuana Update Background In 2012, Constitutional Amendment 64 was passed by the voters in Colorado allowing for the retail sale of marijuana for recreational use. Amendment 64 grants local governments the rights to regulate retail marijuana establishment operations, provided said regulations are at least as restrictive as state law. Additionally, Amendment 64 authorizes local governments to prohibit (i.e., ban) retail marijuana establishments. At the same time, Amendment 64 also grants local governments the rights to adopt only those regulations required by state laws (i.e., unregulated by the local government). In sum, the passage of Amendment 64 establishes a wide spectrum of options for a local government to consider ranging from a prohibition on the operation of retail establishments to regulating the operation to the minimum extent allowed by state law. A major element of Amendment 64, as approved, is that it allows towns, cities and counties to make their own decision of whether they want licensed businesses or not. Currently, the Town of Vail has not taken a final position on an adopted policy on the operation of retail marijuana establishments. Instead, a temporary ban (Ordinance No. 12, Series of 2014) has been placed on the operation of retail marijuana establishments in Vail pending the outcome of a larger, community -wide policy discussion. The ban is in effect until August 4, 2015 and may be shortened or lengthened if necessary. Purpose of the Meeting The purpose of this public hearing is to provide the Vail Town Council with an update on recreational marijuana in Colorado 18 months after its legalization and to receive direction from the Town Council on what steps, if any, the Town Council wishes to take in establishing a policy for regulating recreational marijuana establishments within the community. The Vail Town Council needs to create a policy on the sale/operation of recreational marijuana facilities for the Town of Vail. To effectively do so, the Town Council must ultimately answer two fundamental questions: 1. Should the recreational sale/operation of recreational marijuana facilities be allowed in the Town of Vail? 2. If allowed, how are recreational sales/operations best accomplished? 6/2/2015 This agenda item affects and impacts the following 2014 Areas of Focus of the Vail Town Council: • Enhance Economic Vitality • Elevate the Quality of the Experience III. Discussions to Date This matter was last discussed with the Vail Town Council and the community on June 17, 2014. At that time, the Town staff in cooperation with the Recreational Marijuana Working Group identified a number of policy questions and issues for further consideration. According to the memorandum from staff and the Working Group: To answer these two questions outlined in the section above, a Recreational Marijuana Working Group was formed and tasked with the challenge of identifying those questions and issues that should be answered or addressed before the Town Council makes a final decision and adopts a recreational marijuana sales/operation policy. The Working Group met on two previous occasions. The first meeting focused primarily on education and information sharing. With knowledge at hand, the Group met for a second time to formulate a list of the questions and issues, that they recommend the Town Council addresses before the Town Council makes a final decision and adopts a recreational marijuana sales/operation policy. The questions and issues are listed below: Should The Recreational Sale/Operation Of Recreational Marijuana Facilities Be Allowed In The Town Of Vail? 1. What are the potential impacts on tourism, image and the Vail Brand? What is the role of community stakeholders in the policy process (Vail Resorts, lodging/hospitality, CSE, VLMD, guests, etc.). 2. Do resort communities face different or additional challenges versus non -resort communities? If so, what are they? Are there aspects of these challenges that are unique to Vail? 3. What are the things we need to consider if we decide to allow recreational sales? 4. Are there financial considerations for the town if recreational sales are allowed? Additional expenditures? Additional revenues? 5. What is the intended distribution of retail marijuana sales licenses for Eagle and Summit Counties? How many in Eagle County? Summit County? 6. What is the total projected budget of marijuana law enforcement in Breckenridge? Aspen? Town of Vail Page 2 6/2/2015 7. How have our neighboring communities in Eagle County decided to regulate recreational marijuana? 8. What are the pros and cons of allowing recreational marijuana sales in the community? Why? Why not? 9. What are the intended and unintended consequences of allowing recreational marijuana sales in the community? 10. What role, if any, do health concerns with regard to the use of marijuana, both beneficial and negative, play in the determination of a recreational marijuana policy? 11. What role does convenience and easy of access play in the decision-making process? Is it convenient for Vail residents and guests to go to Eagle -Vail? 12. Are there any "frozen" municipal services or wish list items that require additional funding? Is it possible to use fees and taxes collected from the recreational sale of marijuana in Vail to fund needed municipal services? 13. What uses/needs does the TOV have for additional tax revenue? 14. If 75% of the persons that voted in the 2012 elections in Vail cast their vote in favor of legalizing recreational marijuana sales (ie Amendment 64), how does the Town reconcile prohibiting marijuana sales? 15. The Town recently completed a Community Survey. The survey contained questions regarding recreational marijuana sales in Vail. What were the results of the survey question and how do they compare to the results of the 2012 election? 16. The Town Council has adopted goals for the Vail community. Ultimately the Vail Town Council must decide if recreation marijuana sales are aligned with the Town Council goals (eg. economic vitality). 17. Amendment 64 allows for the retail sales of recreational marijuana as well as the operation of product manufacturing, cultivation and testing facilities of the policy vs. the cultivation. Should retail sales be looked at different than manufacturing, cultivation and testing? What are the intended and unintended consequences of doing so? 18. The Town needs to consider whether it's sending unintended mixed messages about the use of marijuana in Vail. For instance, if according to Amendment 64, persons 21 years of age or older may possess and consume recreational marijuana but it is illegal to consume marijuana in public, on Vail Mountain, in hotel rooms, eating and drinking establishments, in the parking garages, at Ford Park Amphitheater, public parks, etc. then where can it be consumed legally? Town of Vail Page 3 6/2/2015 19. How does the Town address a mixing of messages? (eg. special events sponsored by alcohol manufacturers and prohibiting recreational marijuana) 20. The Town should consider measures to protect the safety of both the consumer & non -consumer of recreational marijuana. 21. Is it lawful under to only permit the consumption of edibles and prohibit consumption by smoking? 22. Is the use of a vaporizer considered smoking? Do the vapors contain any odor? 23. More input and feedback is needed from lodging/hotel community. How will the industry be impacted if permitted? What the issues of the lodging/hotel community? 24. Was there a business community survey completed? 25. Alignment with cultural values? (alcohol) Treatment of marijuana being "nasty" yet we "celebrate" alcohol through festivals. Differential treatment within the culture. Why the double standard? 26. Where can people go to consume if they do not have a private residence? 27. Parallel to another community where it is readily available. If it's not available in Vail, will it change a resident or guest's ability to purchase? Does this change anyone's buying or consumption behavior? 28. What is the reaction of the guest? How might this effect tourism? Have we received feedback from our guests? 29. Why should Vail allow recreational marijuana when there are already places to purchase/consume so close in Eagle Vail? 30. There has been talk about impacts to the Vail Brand. What is the Vail Brand? 31. How much is it going to cost the Vail taxpayer in terms of enforcement, unintended consequences, staffing resources, jail size, compliance, public education, etc.? 32. Whether permitted or prohibited, isn't the Town going to incur these costs regardless? 33. If the Town doesn't have a new revenue source (ie. excise tax), what is the identified revenue source to cover these costs? Is licensing a potential revenue source? 34. Why not simply wait and see what happens in other communities that have both permitted and prohibited recreational marijuana sales? Town of Vail Page 4 6/2/2015 35. What are the most common reasons communities allow recreational marijuana sales? 36. If allowed, could a tax be levied on all recreational marijuana sales to help fund Red Sandstone School (i.e., bus service, expanded curriculum, improved classrooms, etc.)? 37. Does the Town of Vail and Vail Resorts in their efforts to run a resort mountain community need recreational marijuana to remain competitive in the tourism industry? If Allowed, How Are Recreational Sales/Operations Best Accomplished? 1. If allowed, what types of retail marijuana establishments should be permitted (i.e., retail stores, cultivation facilities, product manufacturing facilities, testing facilities, etc.)? 2. Should a licensing structure different from the state licensing structure be created? (i.e., more restrictive). Adopt a local licensing structure? Operations fees? Additional tax? 3. Should the Town's policy on medical marijuana centers be reconsidered? If so, should the town allow for dual operations (co -location of medical and retail marijuana businesses)? 4. Should a limit on the number of establishments be adopted? Locations in Town? Size of use? Advertising and displays? First floor, second floor, below grade? Use by right? 5. If permitted, how can we be confident recreational sales will be done in a manner that is in keeping with Vail's image, reputation and brand? 6. Do the Town's current building codes adequately address recreational marijuana retail store operations? Cultivation facilities? Product manufacturing facilities? Home grow operations? If not, what type of amendments would be necessary? 7. How are the unpleasant odors and smells of marijuana, both in terms of consumption (i.e., burning) and cultivation or retail sales addressed? Are there examples from other communities to look to? 8. What are some of the better examples of recreational marijuana public education and community outreach campaigns implemented by communities throughout Colorado? 9. How is security addressed with cultivation facilities, production facilities, and retail sales operations? How important is security? Town of Vail Page 5 6/2/2015 10. Are there any existing land uses in the Town of Vail where retail marijuana sales are most compatible? Not at all compatible? What specific issues should be addressed when determining compatibility? 11. Challenging licensing issues throughout the country that have been identified. What have we learned from others? What can we learn from others? Other licensing types? 12. Are there best practices established? 13. How has Snowmass Village been impacted by their ban with the product readily available in neighboring communities (ie Aspen, Basalt)? 14. How much latitude is there in the state regulatory framework for Vail to permit uses otherwise prohibited by the law? 15. Are there regulatory disclosure requirements regarding previous use of the property as it relates to any prior manufacturing, cultivation and/or testing of marijuana on the premise? 16. Can a homeowner/renter in Vail cultivate in a private residence? How do nuisance regulations get addressed in said circumstances? 17. Has the Town considered allowing marijuana smoking in the same areas as cigarette smoking? Is there a difference in the eyes of the adopted law? 18. Is there an overall ban on smoking in all of the hotels? How does the Colorado Clean Air Act apply to smoking marijuana indoors? 19. What percentage of marijuana is required to be grown by the businesses? 20. Is there a certification or training process required for persons selling recreational marijuana to ensure that it is done so in a safe and informed manner (ie TIPS program for bartenders)? 21. What role will adjacent property owners or businesses have in the development review process for requests to operate a recreational marijuana facility? How is their input used in making a determination on the appropriateness or compatibility of use? IV. Reports 1. First Year of Recreational Marijuana in Colorado The Colorado Department of Revenue — Marijuana Enforcement Division released its first annual report detailing the first year of lawful retail marijuana sales to adults over the age of Town of Vail Page 6 6/2/2015 21 in Colorado. The Marijuana Enforcement Division (MED) is tasked with licensing and regulating the medical and recreational marijuana industries in Colorado. The Division implements legislation, develops rules, conducts background investigations issues business licenses and enforces compliance mandates in order to maintain a robust regulatory structure. MED released its first annual report on February 27, 2015. More than 825 retail establishment licenses and roughly 1,416 medical business licenses were issued within the State as of December 2014 according to the report. The nearest licensed facility to the Town of Vail is currently located in unincorporated Eagle County in the Eagle -Vail business/commercial area. The report further states that as of year-end 2014, only 67 of Colorado's 321 total jurisdictions allow the sale of medical and recreational marijuana leaving 228 jurisdictions continuing to prohibit any form of legal marijuana sales pursuant to Amendment 64. According to the annual report, "The data reported into the system clearly illustrates a strong demand for edibles in general, but especially for retail marijuana edibles. The edible trend suggests that retail marijuana products are a viable product for retail consumers. Retail marijuana product edibles accounted for approximately 59 percent of the total units sold in 2014" A copy of the annual report has been attached for reference (Attachment A). 2. Status Report The Drug Policy Alliance (DPA) published a status report on the regulation of retail marijuana sales in Colorado. DPA is based out of New York City with three regional offices located across the country, including one in Denver, Colorado. According to their website, DPA is the nation's leading organization promoting responsible drug policies that are grounded in science, compassion, health and human rights. Their mission is to promote sensible and responsible drug policy reform. According to DPA's Status Report, it is far too early to make any definitive declarations about social trends in Colorado. Depending on one's point of view, DPA reports there are several encouraging signs that have been documented in Colorado since the first retail marijuana stores opened back on January 1, 2014. A copy of the report has been attached for reference (Attachment B). The Report identifies the following trends: • Retail Marijuana stores are estimated to account for more than $600 million of the projected $1 billion in all marijuana store sales in 2014. • The Marijuana Industry Group estimates there are currently about 10,000 people directly involved within the industry. • Approximately 54% of voters in Colorado still support marijuana legalization and regulation. • Gov. Hickenlooper recently noted that Colorado CEO's and officials of companies looking to move to Colorado "don't see it (marijuana legalization) as a workforce problem or an image problem". • Crime rates are down in Denver, according to the FBI's Uniform Crime Reporting Data. There has been a 10.2% decrease in overall crime. 3. Retail Marijuana Sales in the Vail Valley Town of Vail Page 7 6/2/2015 The Towns of Avon, Vail, Eagle, Minturn and Gypsum prohibit the retail sales of marijuana within their municipal boundaries. Eagle County has adopted regulations allowing for retail marijuana sales within the unincorporated areas of the County. According to the County's regulations, in part, up to four retail business licenses for marijuana sales may be issued for the eastern portions (Eagle River Valley) of the County and up to two licenses may be issued for the western portions (Roaring Fork Valley). Currently, the retail marijuana businesses located nearest to Vail are in the Eagle -Vail Business District about three miles from the Town boundary. 4. The Legalization of Marijuana in Colorado — the Impact 2015 Preview The Rocky Mountain High Intensity Drug Trafficking Area (HIDTA) has published a preview of the most up to date data available on the impacts of the legalization of marijuana in Colorado. This preview report is intended to address numerous inquiries received from community leaders, government officials, drug policy experts, media and citizens about the drug policy regarding legalizing marijuana use in Colorado. The preview report (Volume 3) and its predecessor, Volume 2, were prepared to allow citizens and policymakers to make informed decisions on this important drug related policy issue. The 2015 preview report addresses such topics as the impact of the legalization of marijuana on matters such as: • Impaired Driving • Youth Marijuana Use • Adult Marijuana Use • Marijuana -related Medical Admissions • Marijuana -related Exposure • Treatment • THC Extraction Labs A copy of the report has been attached for review and reference (Attachment C). V. Attachments A. Colorado Department of Revenue — Marijuana Enforcement Divisions Annual Update, February 27, 2015. B. Status Report: Marijuana Regulation in Colorado After Six Months of Retail Sales and 18 Months of Decriminalization, Drug Policy Alliance. C. The Legalization of Marijuana in Colorado — the impact 2015 preview. Town of Vail Page 8 6/2/2015 COLORADO Department of Revenue Enforcement Division - Marijuana Annual Update Barbara Brohl Executive Director Colorado Department of Revenue Ron Kammerzell Deputy Senior Director of Enforcement Colorado Department of Revenue W. Lewis Koski Director, Marijuana Enforcement Division Colorado Department of Revenue February 27, 2015 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Introduction... ........................................................................................................................................ 3 LicensingData.......................................................................................................................................5 Generalinformation.........................................................................................................................6 BusinessLicensing............................................................................................................................7 OccupationalLicensing....................................................................................................................9 MarijuanaPlant and Flower Data......................................................................................................11 InventoryTtacking..........................................................................................................................12 Average Number of Medical Marijuana Plants Being Cultivated.............................................12 Average Number of Retail Marijuana Plants Being Cultivated.................................................15 TotalAmount of Flower Sold.........................................................................................................18 InfusedProduct Data...........................................................................................................................22 Medical Marijuana Infused Products and Retail Marijuana Products.....................................23 Edibles...... .�...........................................................................................................».........................23 Non-Edibles.....................................................................................................................................24 MandatoryRetail Testing Data..........................................................................................................29 DueDiligence Investigation Data......................................................................................................33 BusinessLicensing Investigations.................................................................................................34 FieldDue Diligence Investigations................................................................................................35 ComplaintInvestigations...............................................................................................................35 Assuranceof Voluntary Compliance...........................................................................................37 Administrative Actions by the State Licensing Authority..........................................................37 ClosingThoughts.................................................................................................................................41 AppendixA — Summary of Tables.....................................................................................................42 2 6/2/2015 Colorado Mariyana Enforcement Division: Annual Update 2014 Quick Facts * 833 Retail Establishment Licenses and 1,416 Medical Business Licenses as of December 2014 * Approximately 110% increase in Retail Business Licenses and 6% increase in Medical Business Licenses • 15,992 Occupational Licenses as of December 2014 * 68% non -renewal rate for Occupational Licenses • 109,578 pounds of medical marijuana flower sold 38,660 pounds of retail flower sold • 1,964,917 units of medical edible 0 products sold • 2,850,733 units of retail edible products sold 3 * Approximately 3,200 MED Due Diligence and Complaint Investigations performed and closed * 98.2% pass rate for potency tests on edibles * 99.2% pass rate for homogeneity tests on edibles 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Introduction On December 31, 2014, Colorado concluded a full twelve months of lawful retail marijuana sales to adults over 21 years of age. The State experienced many firsts, such as the implementation of the first -in -the -world comprehensive regulatory model overseeing cultivation, products manufacturing, and sale of marijuana for non-medical retail use. Integral to that model was licensing of retail marijuana establishments, and the witnessing of the first legal sale of retail marijuana in the world. During 2014, the Marijuana Enforcement Division continued to develop its information systems to include the Marijuana Enforcement Tracking Reporting and Compliance (METRCT") inventory tracking system, it built up its staffing levels from less than 30 full time employees to over 50, and established three additional offices around the State in Colorado Springs, Grand Junction and Longmont. These important developments led to more licensing, increased monitoring, and appropriate compliance actions taken against licensed premises compared to previous years. Throughout 2014 there was a tremendous amount of interest in data related to the number of licensees, marijuana inventory levels, testing data, sales figures, taxes collected, monitoring activity, and administrative actions. The Division is committed to transparency in all of its operations and 4 providing aggregate data, when lawfully appropriate. To further that goal, the Division aims to release the data provided in this report on a quarterly basis. The Division will also continue to develop analytical and reporting tools in order to expand the set of relevant aggregate data points in the future. Because the MED is responsible for the comprehensive monitoring and enforcement of licensed businesses pursuant to the Medical and Retail Marijuana codes, this report focuses on licensing data, inventory data from METRCT11' monitoring and enforcement data, and administrative actions. Legal Authorities for the MED and Licensed Marijuana Businesses Medical • Colorado Constitution: Article XVIII, §14 • Colorado Revised Statutes: 12-43.3-101 et seq. • Code of Colorado Regulations (MED Rules) 1 CCR 212-1 Retail • Colorado Constitution: Article XVIII, §16 • Colorado Revised Statutes: 12-43.4-101 et seq. • Code of Colorado Regulations (MED Rules) 1 CCR 212-2 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Licensing Quick Facts 321 total local jurisdictions in Colorado • 67 local jurisdictions allow medical and retail licensees 228 local jurisdictions prohibit medical and retail licensees • 21 local jurisdictions allow only medical licensees 5 local jurisdictions allow only retail licensees 5 • 1,416 medical business licensees at the end of 2014 • 833 retail establishment licensees at the end of 2014 • 6,593 Occupational Badge licensees at the beginning of 2014 • 15,992 Occupational Badge licensees at the end of 2014 6/2/2015 Colorado Marijuana Enforcement Division: -An n -,u -a-1 Update General Information The licensing structure, as provided for in both the Medical and Retail Marijuana Codes, requires that marijuana business licensees in the commercial segments of the industry obtain licensing and/or approvals through both the MED and any relevant local licensing authority. The Medical Marijuana Code requires formal licensing by both jurisdictions while the Retail Marijuana Code requires state licensing and the local jurisdiction can either license or approve the business. According to both the Medical and Retail Marijuana Codes, any local authority has the discretion to determine whether or not it will allow either type of commercial marijuana activity in its jurisdiction, and it Table 1 may adopt more restrictive local ordinances or resolutions to further regulate the activity within local communities. The MED communicates at least annually with local jurisdictions in order to coordinate regulatory efforts. As of December 31, 2014, there were 321 local jurisdictions that had reported the status of their commercial licensing to the MED. Table 1 below summarizes the results of those disclosures to the MED. Statewide, there are more local jurisdictions that have completely opted out of the commercial market in comparison to those jurisdictions that have allowed for operation of one or both of the commercialized medical and retail marijuana segments of the industry. Local Jurisdiction Licensing Status Total Jurisdictions Medical and Retail Marijuana Banned 228 Medical Marijuana Licensees Only 21 Retail Marijuana Licensees Only 5 Medical and Retail Marijuana Licensees 67 Total 321 0 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Business Licensing The MED is responsible for conducting investigations and making licensing recommendations to the State Licensing Authority (SLA), who is the Executive Director of the Colorado Department of Revenue, for medical marijuana businesses and retail marijuana establishments, and their respective owners. Pursuant to House Bill 10-1284, the MED was established in 2010 to license and monitor medical marijuana businesses. The MED has been making licensing recommendations for medical marijuana businesses since 2011. On January 1, 2014 there were a total of 493 Medical Marijuana Centers, 713 Optional Premises Cultivation Locations and 129 Medical Marijuana Infused Product Manufacturers. After the passage of Amendment 64, the MED was designated as the licensing and monitoring agency for retail marijuana establishments. Existing medical business licensees were able to start submitting applications for Retail Marijuana Establishment licenses in October of 2013, and recommendations for those licenses occurred in the months leading up to 2014. As a result, MED recommended approval for 348 Retail Marijuana Establishment licenses that became effective January 1, 2014. Of these 348 Retail Marijuana Establishment licenses, there were 136 Marijuana Stores, 178 Marijuana Cultivation Facilities, 31 Products Manufacturing Facilities and 3 Marijuana Testing Facilities. I.1 Table 2 on page 8 illustrates the changes in numbers and types of medical marijuana business and retail marijuana establishment licenses for the calendar year ending December 31, 2014. The largest licensing increases for the year occurred in the retail segment of the industry, which experienced growth of nearly 110% in issued licenses, whereas medical marijuana business licenses experienced only a 6% increase. Nevertheless, at the end of 2014, there were 583 more licensed medical marijuana businesses than retail marijuana establishments. Overall, the industry has grown from 1,734 licensed premises to 2,249 licensed premises; a growth of almost 30%. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update MED 2014 Month End Business License Totals Table 2 Medical Businesses January February March April May June July August September October November December Centers 493 493 489 490 493 493 496 496 493 497 501 505 Medical Cultivations 713 717 715 719 727 729 731 735 725 737 739 748 MIP (Infused Product Manufacturer) 129 130 134 139 144 149 152 155 154 158 158 163 Total 1,335 1,340 1,338 1,348 1,364 1,371 1,379 1,386 1,372 1,392 1,398 1,416 Retail Establishments Retail Stores 156 169 188 197 205 212 221 242 282 292 306 322 Retail Cultivations 204 220 243 259 272 279 293 316 347 359 375 397 Product Manufactures 36 39 49 54 58 63 66 73 85 89 92 98 Testing Facilities 3 3 4 7 7 8 13 13 15 15 15 16 Total 399 431 484 517 542 562 593 644 729 755 788 833 Total Licensed Premises 1,734 1,771 1,822 1,832 1,906 1,933 1,972 2,030 2,101 2,147 2,186 2,249 1,500 1,000 500 LLLLLLLLL 0, -- Jai a51 �'4 met °met �,0et ��t d' ■ Total Medical Licenses ■ Total Retail Licenses E3 6/2/2015 Colorado Mariivana Enforcement Division: Annual Update Occupational Licensing The MED has been processing occupational licenses since May 2011. Occupational licenses are valid for two years and the licensee is responsible for renewing the license before it expires. Early in 2014, the MED determined that it needed additional resources to meet the demand for licensing occupational license applicants, and hired four temporary licensing specialists. These positions have remained filled during the entirety of 2014 because the demand for occupational licensing has remained steady throughout the year. In January 2014, there were a total of 6,593 approved occupational licenses. As of December 31, 2014, that number had increased to 15,992 occupational licensees an increase of nearly 143%. An analysis of new and renewal processing of occupational license applications for 2013 and 2014 show a high rate of non -renewal of occupational licenses, which may explain why the demand for new occupational licenses remains high. R K[Y�1p EMPLOYEE o N Michelle Y LIC t h100 aaa OW. MV 13 9 TE O. . EAKM The MED started issuing occupational licenses in May 2011. Those licenses began to expire in May 2013. During May to December 2013, approximately 79% of the occupational licensees that were scheduled to expire did not apply for renewal. The non -renewal rate for 2014 decreased to 68%, suggesting that demand for the processing of new occupational licenses will remain brisk for 2015. If renewal rates for occupational licensees were to increase significantly over time, the MED still anticipates that demand for occupational licensing will remain steady either through new license processing or renewal of existing licenses. Table 3 on page 10 summarizes the MED's occupational license activity during 2014. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update fable 3 Key License Issued Key Licenses Renewed Support Licenses Issued Support Licenses Renewed Total Occupational Badges Issued Key Licenses Expired Support Licenses Expired Total Occupational Badges Expired Percent of Occupational Licenses Renewed Percent of Occupational Lic"ses Expired 2014 Occupational Licensing Data January February March April May June July August September October November December 12,434 31 28 35 52 52 22 10 314 233 197 217 165 162 152 134 131 148 100 115 24 28 33 20 40 16 9 10 11 8 10 11 d425 934 984 982 909 955 768 695 650 802 827 607 608 49 40 73 76 65 34 17 13 16 14 18 10 1,321 1,285 1,285 1,222 1,225 980 873 807 960 997 735 744 12,434 31 28 35 52 52 22 10 13 12 12 5 1 273 145 121 145 183 163 98 40 32 31 45 36 38 1,077 176 149 180 235 215 120 50 45 43 57 41 39 1,350 29% 31% 37% 29% 33% 29% 34% 34% 39% 28% 41% 35% 32% 71% 69% t 3% 71% 67' v 71% 66% 66°k. 61% 72% 51) W. 65% 68`x6 ' Occupational Licensee data are month end totals that illustrate how many of each category was processed during a given month. 10 6/2/2015 Colorado Marihuana Enforcement Division: Annual Update Marijuana Plant and Flower Quick Facts • Seed -to -Sale Tracking was implemented in late 2013 • Over 37 million events have been recorded • Medical Marijuana Business plant limits are established by each center's registered patient count • Retail Marijuana Establishment plant limits are established by rule as part of production management • An average of 300,000-320,000 medical plants were cultivated each month, excluding January • The average cultivated amount of retail plants ranged from nearly 25,000 plants in January, to over 200,000 plants in December • A total of approximately 148,000 pounds of mariivana flower was sold in the reeulated market 061 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Inventory Tracking The MED utilizes a sophisticated web -based computer system, known as the Marijuana Enforcement Tracking Reporting and Compliance (METRC"") system, to track and monitor inventory from the immature phase of the cannabis plant's lifecycle until it is harvested, transported and sold at a licensed premises. This is what is known as "seed to sale tracking". Since its implementation in late 2013, the system has tracked millions of plants through their life cycle and recorded over 37 million events. The MED continues to work with its software vendor Franwell, to mine and analyze data captured in the system in order to enhance reporting capabilities and analytical tools. This section contains key aggregate data points important for interested stakeholders to better understand the scope of commercialized marijuana in the state of Colorado. Definitions • "Vegetative" means the state of the Cannabis plant during which plants do not produce resin or flowers and are bulking up to a desired production size for Flowering. • "Flowering" means the reproductive state of Cannabis in which the plant is in a light cycle intended to stimulate production of flowers, trichromes, and cannabinoids characteristic of mariivana. 12 Average Number of Medical Mariivana Plants Being Cultivated Medical Marijuana Business licensees have production limits that are outlined in statute. Medical Marijuana Centers (Centers) accept registrations from patients that in turn determine the total amount of plants they are authorized to grow. The number of plants allowed defaults to six per patient, but a portion of the patients registered with Centers have doctors' recommendations that exceed the six plant limit. Licensees are not allowed to cultivate more vegetative and flowering plants than the amounts authorized by the patient registrations. i The data for Average Plants includes vegetative and flowering plants reported by Medical Marijuana Business licensees. As illustrated in Table 4 on page 14, there were between 300,000 and 320,000 plants on 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update average being cultivated during 2014, with the exception of January. One possibility for this data anomaly may have been associated with the implementation of METRCIm and under reporting by licensees as they transitioned onto the system. Another contributing factor may have been associated with the one-time transfer of medical marijuana that was authorized in statute as some Medical Marijuana Businesses began selling retail marijuana at Retail Marijuana establishments in January 2014. Nonetheless, the number of plants reported in the system for the balance of the year appears to be stable from month to month. Authorized Plant Count includes total number of patient registrations and their respective plant count recommendations that licensees report into the METRCTM system. The METRCTm data suggests that licensees cultivated approximately 50 percent or less of the plants they were authorized to cultivate in any given month during 2014. I -,' _ir 1 4 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Table 4 Average Authorized Medical Plants Average Cultivated Medical Plants Percentage of Authorized Growth Capacity Average Vegetative Medical Plants Average Flower Medical Plants 700,000 Average Medical Marijuana Plants bV Month January February March April May June &IM August September October November December 550,187 602,830 636,429 653,019 648,380 649,256 657,985 660,733 648,493 624,034 618,582 616,575 194,476 318,694 319,889 311,250 309,580 311,723 313,643 305,870 305,039 300,809 296,277 302,793 35% 53% 50% 48% 48% 48% 48% 46% 47% 48% 48% 49% 115,279 188,505 191,276 188,583 187,039 184,973 182,454 175,210 173,244 172,961 170,582 170,055 79,197 130,189 128,613 122,666 122,540 126,750 131,188 130,659 131,794 127,847 125,695 132,737 600,000 500,000 400,000 300,000 200,000 100,000 roc,o10t �t lacy �� � P4 Py �Z 0 Average Authorized Medical Plants ■ Average Cultivated Medical Plants 14 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Average Number of Retail Plants Being Cultivated Cultivation of Retail Marijuana plants first became lawful on January 1, 2014 when the MED issued 178 Retail Marijuana Cultivation Licenses. By the end of 2014, there were 397 licenses in this category. It is important to note that many of the Retail Cultivations licensed by the MED were not necessarily operating because those businesses were also required to obtain local jurisdiction approvals as well. Those local approvals were finalized after the MED license was issued. Retail Marijuana Establishments have production limits placed on them through regulation. There are three tiers of plant growth authorized that were established at 3,600, 6,000 and 10,200 plants. For almost the entirety of 2014 vertical integration was required, meaning that Retail Marijuana stores were required to grow 70 percent of the product sold by having a commonly owned, licensed cultivation (s). The initial production limit established for medical centers determined the number of plants a retail store 15 could have at its commonly owned cultivation(s). It appears from the data reported into METRCTM that Retail Marijuana Establishments were growing plants on average below what was authorized by the production limit regulations. A conservative estimate of overall authorized plant count limits substantiates this assertion. Assuming that half of the MED licensed retail stores were operating at any given time and that those licensees were allowed the lowest tier of 3,600 plants under the production management rules, Retail Marijuana Cultivations were reporting an average growth at 40 percent or less of the total authorized plant count production limit. Table 5 on page 16 illustrates that the average retail marijuana plant growth trended up during 2014 and the gap between the average number of medical marijuana and retail marijuana plants was closing during the same time period. a 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Average Retail Mariivana Plants by Month Table 5 January February March April May June &IM August September October November December Average Cultivated Retail Plants 24,767 54,918 83,026 112,741 130,852 144,763 155,817 165,503 179,399 195,953 208,761 216,802 Average Vegetative Retail Plants 12,756 31,536 50,536 70,161 81,483 87,666 94,106 98,693 Average Flower Retail Plants 12,010 23,382 32,490 42,580 49,368 57,096 61,711 66,809 250,000 200,000 150,000 100,000 50,000 will we4p S 4 eo 0 ■ Average Cultivated Retail Plants 16 103,519 114,946 75,879 81,006 t oe��ec e`es�c 6/2/2015 124,291 126,132 84,469 90,670 Coloradq Marilyana Enforcement Division: Annual Update Medical marijuana business licenses outnumbered those of retail marijuana establishments throughout the entirety of 2014. In many cases this was observed through differences in the volume of inventory tracked in METRCTM. Table 6 For example, the following table shows proportional differences in the average number of plants tracked in the system during 2014. The average number of retail plants trailed medical plants, but the trend suggests that this gap is closing. 600,000 500,000 I 400,000 300,000 200,000 100,000 ■ Average Plants Medical ■ Average Plants Retail a Total Average Plants (Medical & Retail) 17 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Total Amount of Flower Sold Medical Marijuana Centers and Retail Marijuana Stores reported that approximately 148,000 pounds of flowering marijuana was sold to customers in both segments of the industry. The retail amount sold lagged behind medical marijuana. By the end of 2014, retail flower was closing the gap, but only accounted for 26% of the total flowering marijuana sold at both Medical Centers and Retail Stores in aggregate for the preceding twelve months. 44.1 T- - 4-16e� 400 The amount of flowering marijuana sold at Medical Marijuana Centers and Retail Marijuana Stores follows a similar trend to what was being farmed at Medical and Retail Cultivations. Table 7 on page 19 shows the reported amount of flower marijuana that was sold in both the retail and medical marijuana segments of the industry. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Total Pounds of Flower Sold bV Month Table 7 FetaiJanua February March April May June Jam( Aueust September October November December Totals l r 3,150 7,686 9,819 8,955 11,338 10,020 9,624 11,531 10,148 9,692 8,816 8,799 109,578 1,070 1,262 2,187 2,180 2,627 3,075 4,181 4,573 4,112 4,319 4,125 4,949 38,660 12,000 10,000 8,000 6,000 4,000 2,000 �A I roec pec �c �c 4 SeQ �o oec' ■ Medical Flower Sold (lbs.) ■ Retail Flower Sold (lbs.) RV 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update The map below illustrates the top ten counties where licensees reported sales of flowering medical marijuana during the year. The darker shaded areas signify higher volumes of sales. Licensees reported the most flowering medical marijuana sold in Denver during 2014. It is important to note that although an entire county is shaded, the licensee(s) may be operating lawfully in specific local jurisdictions within that county. Top T*n Countles for Amount of ht"cal Flower Sold Q 20 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update The map below illustrates the top nine counties where licensees reported sales of flowering retail marijuana during the year. The darker shaded areas signify higher volumes of sales. Licensees reported the most flowering retail marijuana sold in Denver during 2014. It is important to note that although an entire county is shaded, the licensee(s) may be operating lawfully in specific local jurisdictions within that county. Top Nine counties for Amount of Retail Flo~ Soil sm 041 I" 6/2/2015 Colorado Mariana Enforcement Division: Annual Update Infused Products Quick Facts • 1.96 million units of edible medical marijuana infused products were sold • 2.85 million units of edible retail marijuana products were sold • 412,000 units of non -edible medical marijuana infused 4i products were sold • 359,000 units of non -edible retail marijuana products were sold 22 • The State Licensing Authority, through the MED, convened two stakeholder work groups tasked with discussing edible retail marijuana products • The first work group focused on edible potency and serving size O• The second work group was mandated by House Bill 14-1366 and focused on making edible products more clearly identifiable 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Medical Marijuana Infused Products and Retail Marijuana Products Edibles Edible products infused with marijuana were discussed at length by the public during 2014, especially with respect to retail marijuana edibles. The State Licensing Authority convened a work group in April 2014 to discuss concerns regarding the number of servings in edible retail marijuana products, versus the amount of THC contained within them. The concern centered on edibles that by their size indicated they were a single serving, such as a single cookie, to be consumed in one sitting, but the product actually could contain up to ten servings of THC. This work group met four times, which culminated in the development of rules to address some of the concerns stakeholders had relevant to consumer protection. Those rules became effective on October 30, 2014 with an implementation deadline of February 1, 2015. For more information on this work group and the rules promulgated as a result, please visit our website at: www.colorado.eov/marieuanaenforcement The State Licensing Authority also convened a work group related to edibles that was mandated by House Bill 14-1366. This work group also met four times with the intent of providing the legislature with a report by February 1, 2015 that would make edibles more clearly identifiable to the general public. The findings of this work group were memorialized in a report that was submitted to the General Assembly. For 23 more information on this work group and to access the report submitted to the General Assembly, please visit our website. The 2014 sales volume for edibles is illustrated on the Table 8, located on page 25. During the first quarter of 2014, the number of infused edibles sold in the medical segment of the market was higher than retail marijuana products. Starting in April 2014, and throughout the remainder of the year, units of retail marijuana edibles sold were higher than medical infused products. There were a total of 1.96 million units of medical infused products sold in 2014 compared to 2.85 million units of retail marijuana products. This measurement illustrates the number of units sold, but does not quantify the amount in milligrams of THC that was found in these edible products. Medical marijuana infused products have no restrictions regarding the amount of THC that can be present in each unit for sale, while in contrast, retail marijuana products 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update are limited to no more than 100 milligrams of THC per edible for sale. The data reported into the system clearly illustrates a strong demand for edibles in general, but especially for retail marijuana edibles. The edible trend suggests that retail marijuana products are a viable product for retail consumers. The retail marijuana product edible trend differs from the sales trend for flowering retail marijuana where the latter only comprised 26 percent of total flowering marijuana sold in pounds. Retail marijuana product edibles accounted for approximately 59 percent of total units of edibles sold in 2014. 24 TOW Non -Edibles Table 9 on page 28 demonstrates that the sale of non -edible medical infused products and retail marijuana products, such as lotions, salves, patches, etc., remained relatively consistent throughout the year. There were approximately 412,000 units of medical marijuana infused products sold compared to 359,000 units of retail marijuana products. In total, there were approximately 5.59 million units of edible and non -edible medical marijuana infused products and retail marijuana products sold in 2014. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update 2014 Total Sales Volume of Medical and Retail Marijuana Infused Edibles Table 8 400,000 350,000 300,000 250,000 200,000 150,000 100,000 - 50,000 ■ Medical Infused Edibles Sold (Units) ■ Retail Infused Edibles Sold (Units) 25 6/2/2015 January February March April May lune lu Amus t September October November December Totals Medical Infused (Units) 53,760 139,750 196,891 185,068 171,999 157,038 171,272 179,469 167,707 177,569 169,136 195,258 1,964,917 Retail Products (Units) 69,406 111,519 185,520 205,729 201,358 235,989 313,222 344,313 268,005 282,906 274,319 358,447 2,850,733 400,000 350,000 300,000 250,000 200,000 150,000 100,000 - 50,000 ■ Medical Infused Edibles Sold (Units) ■ Retail Infused Edibles Sold (Units) 25 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update The map below illustrates the top ten counties where licensees reported sales of infused medical marijuana products during the year. The darker shaded areas signify higher volumes of sales. Licensees reported the most infused medical marijuana products sold in Denver during 2014. It is important to note that although an entire county is shaded, the licensee(s) may be operating lawfully in specific local jurisdictions within that county. Top Ten Counties for Quantity of Medial infused Products Sold fel xieoee 34.723 26 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update The map below illustrates the top nine counties where licensees reported sales of infused retail marijuana products during the year. The darker shaded areas signify higher volumes of sales. Licensees reported the most infused retail marijuana products sold in Denver during 2014. It is important to note that although an entire county is shaded, the licensee(s) may be operating lawfully in specific local jurisdictions within that county. Top Nine Counties for Quantity of Retail Infused Products Sold 27 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update 2014 Total Sales Volume of Medical and Retail Marijuana Infused Non -Edibles Table 9 January February March April May June Juy August September October November December Totals Medical Infused Non- 12,141 27,769 31,945 34,197 36,082 37,259 35,297 42,410 38,411 42,211 36,573 36,804 411,099 Edibles Sold (Units) Retail Infused Non- 7,235 12,257 21,169 30,440 25,699 31,397 36,079 42,273 38,292 40,029 35,879 38,663 359,412 Edibles Sold (Units) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 a4 `off er Q4 �` 1 1 �a 9zlrp ZI6 a ��` bo 1 4e 511 p ■ Medical Infused Non -Edibles Sold (Units) ■ Retail Infused Non -Edibles Sold (Units) 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Testing Quick Facts 16 Testing Facilities were licensed by the end of 2014 8 were provisionally certified for potency/homogeneity testing 1 was provisionally certified for residual solvent testing MED licenses and monitors the testing facilities, and the Laboratory Service Division of the Colorado Department of Public Health and Environment evaluates the testing facilities for certification Nearly 4,000 potency test results were reported in METRCTM Nearly 2,300 homogeneity test results were reported in METRCTm Data illustrates a 98.2% pass rate for potency tests, and a 99.2% pass rate for homogeneity tests 010-9' Contaminant testing for residual solvents and microbials will be implemented in 2015 WN Pursuant to statute, testing was required only for the retail segment of the industry 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Mandatory Retail Marijuana Testing In May 2014, MED implemented required potency testing for retail marijuana products to ensure retail marijuana products did not contain more than 100 mg of THC in one unit of edibles. During 2014, licensees reported into METRC'"" 3,893 potency test results. Retail marijuana testing facilities reported into METRC''A 72 failed tests for a pass rate of 98.2 percent. In July 2014, MED implemented additional required testing to ensure that THC infused into retail marijuana products was homogenous throughout the unit of retail marijuana product for sale to a consumer. During 2014, licensees reported into METRC'"" 2,261 homogeneity tests. Retail marijuana testing facilities reported in METRO'"" 18 failed test for a pass rate of 99.2 percent. MED anticipates implementing more mandatory testing requirements during the first half of 2015 for contaminant testing. Contaminant testing will include both residual solvent and microbial analysis. Standards for both types of contaminant testing are established in Rule 1 CCR -212, R 712. Testing for contaminants will begin with beta testing to ensure there is adequate retail marijuana testing facility capacity to accommodate this additional testing. MED continues to work within the confines of the statute that gives authority to the State Licensing Authority to adopt rules related to mandatory testing of retail 30 marijuana, on a timeline to be established by the State Licensing Authority. As of December 31, 2014 there were eight retail testing facilities provisionally certified for potency testing and one provisionally certified for residual solvents. While there were no testing facilities provisionally certified for testing microbials at the end of 2014, multiple testing facilities were in the process of completing the necessary requirements in order to obtain provisional certification. In 2014, pursuant to the Medical Marijuana Code, there were no requirements for Medical Marijuana Businesses to test any medical marijuana or medical marijuana infused products produced at licensed premises. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update 2014 Mandatory Retail Potency Testing for Edibles Table 10 January February March April May June July August September October November December Totals Total Mandatory - - - - 399 514 515 485 627 490 392 471 3,893 Potency Tests 400 Mandatory Potency - 379 512 508 477 618 473 388 466 3,821 Testing Edibles (Passed) 200 ti 100 4 1 e Mandatory Potency - _ _ _ 20 2 7 8 9 17 4 5 72 Testing Edible (Failed) Mandatory Potency - _ _ _ 95.0% 99.6% 98.6% 98.4% 98.6% 96.5% 99.0% 98.9% 98.2% Testis Passed (%) ■ Mandatory Potency Testing Edible (Failed) 31 6/2/2015 700 600 500 400 300 "= =yl 200 ti 100 4 1 e n tl 0 ■ Total Mandatory Potency Tests ■ Mandatory Potency Testing Edibles (Passed) ■ Mandatory Potency Testing Edible (Failed) 31 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update 2014 Mandatory Retail Homogeneity Testing for Edibles Table 11 January February March April May June Mandatory Homogeneity _ Testing Edibles Mandatory Homogenity Testing Edible (Passed) Mandatory Homogenity Testing Edible (Failed) Mandatory Homogeneity Testing Passed (%) 600 500 400 300 200 100 0 � � D ■ Total Mandatory Homogeneity Tests ■ Mandatory Homogenity Testing Edible (Passed) ■ Mandatory Homogenity Testing Edible (Failed) Ju_yl August September October November December Totals 289 433 533 361 281 364 2,261 289 429 532 355 277 361 2,243 - 4 1 6 4 3 18 100.0% 99.1% 99.8% 98.3% 98.6% 99.2% 99.2% 32 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update w m Investigations Quick Facts The Division has four offices located throughout Colorado: Denver, Colorado Springs, Grand Junction, and Longmont • MED concluded over 3,200 due diligence and complaint investigations ® Nearly 1,200 licensing investigations were closed for new and renewed business licenses • MED completed new licensing investigations of just over 300 new owner applications during 2014 • 230 application investigations were processed for changes of ownership for current licensees 33 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Due Diligence Investigations On a daily basis, MED staff members are engaged in a number of routine activities related to the licensing and monitoring of medical marijuana businesses and retail marijuana establishments. These activities are grounded in statutes that outline the due diligence the MED is required to conduct in order properly regulate the commercial medical and retail licensees. a1F COL ok4bo DEPARTMENT OF REVENUE Marijuana Enforcement Division Retail Marijuana Conditional License BUSINESS NAME UP Mria bawl, Do*"& CO =If Writ MmQj Stas - 40=4 N0 Ltd"" or. of Lk� 811GLIM4 11 VdWn.w4r4nM/ t! re»+ro...»aardosid tarsi Irsu6rr"441 WO"LS. 'w ewOMr. KW'r rwM wMr r's+w N s r.. r prr no wr.� � � rsrYrM •q n m erwrra arrww. earwan bars. e5 x+..a. rr ar xa. cww. wfaeu , arers.rrw � �.. Mnairrl�(.W Business Licensing Investigations In 2014, the MED closed nearly 1,200 licensing investigations for new and renewed business licenses. The Division accepted and closed another 230 application investigations for changes of 34 ownership for current licensees. Each of the cases noted above can vary in complexity and affect the licensing status of many licenses for any given investigation. In addition to the corporate investigations, the MED completed new licensing investigations of just over 300 new owner applications during 2014. During 2014, just fewer than 100 business license applications were voluntarily withdrawn by applicants before the licensing investigation was completed. Also during 2014, the MED processed approximately 150 voluntary surrenders for businesses licensed in the Medical and Retail segments of the industry. Many of these voluntary surrenders were the result of licensed Medical Marijuana Businesses converting to Retail Marijuana Establishment licenses. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Field Due Diligence Investigations MED investigators perform due diligence investigations in order to proactively monitor licensees and to ensure continued compliance beyond licensing. As part of MED's due diligence, field investigators conducted over 800 routine licensing inspections for new licenses, changes in location, modifications of licensed premises, and in response to complaints. The MED's field enforcement section began the year with one field office fully established in the Denver metropolitan area. During this time MED had other staff members working throughout the state, but by the end of the year, MED established three new field offices located in Colorado Springs, Grand Junction, and Longmont. The Colorado Springs office monitors licensees in the southern region of the state, mainly along the 1-25 corridor. The Longmont office monitors licensees located in the northern part of the Front Range. The Grand Junction office monitors licensees in the western third of the state. Complaint Investigations Complaint investigations occur when the MED conducts an inquiry into a specific concern or allegation of non-compliance involving a licensee. In some cases, due diligence investigations develop into complaints, while other times issues are raised by local licensing authorities, cooperative investigations with other law 35 enforcement agencies, or through citizen complaints against a specific licensee. Not all complaint investigations lead to administrative action recommendations. An example of this scenario is when an investigation reveals that the concerns prompting the investigation were unfounded. As illustrated in Table 12 on page 36, the Division closed approximately 370 different complaint investigations in 2014. The next section of the report will discuss the administrative actions taken by the State Licensing authority during 2014. Due Diligence and Complaint Investigations Conclusion During 2014, MED concluded over 3,200 due diligence and complaint investigations. The Division had approximately 1,200 open due diligence and complaint investigations as of December 31, 2014, which were assigned to current staff members. Over the course of the year, the division thoughtfully grew its field offices and staff count in order to meet the requirements of regulating the medical and retail marijuana industry, and to reduce the amount of open cases. To further accomplish these objectives, MED submitted a supplemental budget request at the end of 2014, requesting additional staff in order to reduce open cases and improve the Division's capacity to monitor licensees for compliance. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update 2014 Due Diligence Investigations and Complaints Table 12 Background Due Diligence Investigations Open Closed Corporate Background Investigation 48 488 Corporate Renewal Investigation 110 702 Corporate Change of Ownership 43 230 Voluntary Withdrawal Applications 22 97 Change of Trade Name 7 57 Owner Background Investigation 44 301 Voluntary Surrender License 24 150 Mandatory Reporting 6 37 Field Enforcement Due Diligence Investigations Licensing Field Inspection 646 319 Investigator Initiated Field Visit 32 137 Change of Location 28 138 Modification of Premises 48 211 Voluntary Surrender Product 2 9 Assist Other Agency 4 22 Total Due Diligence Investigations 1,064 2,898 Complaint Investigations Background Investigation 3 17 Field Inspection 18 54 Citizen Complaint 19 56 Report of Violations 18 31 Tip Line 6 19 Regulatory Violation 103 172 Criminal Violation 8 18 Total Complaint Investigations 175 367 36 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Assurance of Voluntary Compliance During 2014, the State Licensing Authority promulgated a rule that became effective October 30th and gave MED the authority to work with licensees to efficiently resolve certain complaints, without having to pursue formal administrative action. This type of agreement is referred to as an Assurance of Voluntary Compliance (AVC). AVCs could be used to resolve alleged violations for various types of regulatory non-compliance. Under this agreement, the licensee does not admit any guilt with respect to the alleged violations, but does agree to maintain compliance with all statutes and regulations going forward. In most cases, the licensee agrees to pay a fee to cover the cost of the associated investigation, and understands that the underlying circumstances of the case could be used in future proceedings. This AVC rule was effective in late 2014, and the MED entered into nine such AVCs during December. The MED sees this 37 as an effective tool for efficiently resolving some of its cases, while also ensuring that compliance issues related to the underlying complaint are avoided in the future. As a result, MED anticipates seeing considerably more AVCs in 2015. Administrative Actions by the State Licensing Authoritv The State Licensing Authority approved approximately 130 administrative actions, which were submitted by the MED, in the form of Summary Suspensions and Order to Show Cause actions. The State Licensing Authority also approved 77 denials for business licensing applications. Tables 14 through 18 on pages 38-40 illustrate the number of licensed premises that were subject to AVCs and other administrative actions during 2014. 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Year End Business License Totals Table 13 Medical Businesses Centers Medical Cultivations MIP (Infused Product Manufacturer) Total Retail Establishments Retail Stores Retail Cultivations Product Manufactures Testing Facilities Total Total Licensed Premises Administrative Actions December 505 748 163 1,416 322 397 98 16 833 2,249 * Data in Table 13 is taken from Table 2 on page 8, and included in this section for reference purposes. 38 Assurance of Voluntary Compliance Table 14 Month Nov Dec TOTAL Center 0 3 3 OPC 0 3 3 Infused Products 0 0 0 Retail Store 0 1 1 Retail Cultivation 0 0 0 Retail Products 0 0 0 Retail Testing 0 0 0 Key/Assoc. Key/Su p port 0 1 1 Vendor 0 1 1 TOTAL LICENSES 0 9 9 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Notices of Denial Table 15 Summary Suspensions Table 16 Jan Feb Mar April May June July August Sept Oct Nov Dec TOTAL Center 0 6 13 6 0 1 0 0 0 0 0 0 26 OPC 0 7 17 8 0 1 1 0 0 0 0 0 34 Infused Products 0 2 9 1 0 1 0 0 0 0 0 0 13 Retail Store 0 0 0 1 0 0 0 0 0 0 0 0 1 Retail Cultivation 0 0 0 1 0 0 0 0 0 0 1 0 2 Retail Products 0 0 0 0 0 0 0 0 0 0 0 0 0 Retail Testing 0 0 0 0 0 0 0 0 0 0 0 0 0 Key/Assoc.Key/Support 0 0 1 0 0 0 0 0 0 0 0 0 1 TOTAL LICENSES 0 1s 40 17 0 3 1 0 0 0 1 0 77 Summary Suspensions Table 16 M 6/2/2015 Jan Feb Mar April May June July August Sept Oct Nov Dec TOTAL Center 0 0 0 0 2 0 0 1 0 1 0 1 5 OPC 0 0 0 0 3 0 0 1 0 4 0 1 9 Infused Products 0 0 0 0 2 0 0 0 0 1 0 0 3 Retail Store 0 0 0 0 1 0 0 1 0 4 0 0 6 Retail Cultivation 0 0 0 0 0 0 0 1 0 0 0 0 1 Retail Products 0 0 0 0 1 0 0 0 0 0 0 0 1 Retail Testing 0 0 0 0 0 0 0 0 0 0 0 0 0 Key/Assoc.Key/Support 0 0 0 0 0 0 0 0 0 0 4 1 5 TOTAL LICENSES 0 0 0 0 9 0 0 4 0 10 4 3 30 M 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Orders to Show Cause Table 17 Stipulation, Agreement, and Order Table 18 Jan Feb Mar April May June July August Sept Oct Nov Dec TOTAL Center 0 2 0 2 2 5 0 2 2 0 3 2 20 OPC 0 2 0 3 2 5 0 3 1 0 6 5 27 Infused Products 0 1 0 1 0 1 0 2 0 0 1 0 6 Retail Store 0 0 0 0 0 1 0 1 1 0 2 3 8 Retail Cultivation 0 0 0 0 0 1 0 2 2 0 5 4 14 Retail Products 0 0 0 0 0 1 0 1 0 0 0 0 2 Retail Testing 0 0 0 0 0 0 0 0 0 0 0 0 0 Key/Assoc.Key/Support 0 1 0 3 7 2 0 2 0 0 3 5 22 TOTAL LICENSES 0 5 0 9 11 16 0 13 6 0 20 19 99 Stipulation, Agreement, and Order Table 18 40 6/2/2015 Jan Feb Mar April May June July August Sept Oct Nov Dec TOTAL Center 0 0 0 3 1 14 2 7 5 3 3 4 42 OPC 0 1 0 1 1 20 3 9 5 4 3 6 53 Infused Products 0 1 0 0 0 2 0 2 1 0 0 0 6 Retail Store 0 0 0 0 0 1 0 0 0 0 0 0 1 Retail Cultivation 0 0 0 0 0 1 0 0 0 0 0 0 1 Retail Products 0 0 0 0 0 0 0 0 0 0 0 0 0 Retail Testing 0 0 0 0 0 0 0 0 0 0 0 0 0 Key/Assoc.Key/Support 0 1 0 2 2 13 3 11 5 0 4 9 50 TOTAL LICENSES 0 3 0 6 4 51 8 29 16 7 10 19 153 40 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Closing Thoughts As the regulating agency of the world's first legal retail marijuana industry, along with regulating the medical marijuana industry, the Colorado Marijuana Enforcement Division recognizes the importance of its role in data collection and sharing. The Division is committed to reporting and managing the collected data with transparency and in accordance with all applicable laws. To continue to provide relevant data, the Division intends to release the information and data collected in this update on a quarterly basis. In addition, the MED will continue to work with the METRCTM system developer to mine and analyze data, in order to expand upon the amount of aggregate data available for public release. Please visit our website at: www.colorado.gov/mari*uanaenforcement, which is where this Annual Update and the Quarterly Updates will be made available. 91 MED Offices All offices are open Monday - Friday, 8:00 AM — 5:00 PM Denver 455 Sherman Street, Suite 390 Denver, CO 80203 Open for Occupational Licensing: ii Monday -Friday, 8:00 AM —11:00 AM, and 1:00 PM to 2:00 PM r Business Licensing by Appointment Colorado Springs • 1030 Academy Blvd, Suite 200 Colorado Springs, CO 80910 • Open for Occupational Licensing by appointment only Grand Junction • 632 Market Street, Suite G3 Grand Junction, CO 81505 r Open for Occupational Licensing by appointment only Longmont * 275 South Main Street, Suite 101 Longmont, CO 80501 Open for Occupational Licensing by appointment only 6/2/2015 Colorado Marijuana Enforcement Division: Annual Update Table1: Local Jurisdiction Licensing Status....................................................................................6 Table2: MED Month End Business License Totals.........................................................................8 Table3: 2014 Occupational Licensing Data..................................................................................10 Table 4: Average Medical Marijuana Plants by Month...............................................................14 Table 5: Average Retail Marijuana Plants by Month...................................................................16 Table 6: Average Number of Medical and Retail Marijuana Plants Compared ....................... 17 Table7: Total Pounds of Flower Sold by Month..........................................................................19 Table 8: 2014 Total Sales Volume of Medical and Retail Marijuana Infused Edibles.............25 Table 9: 2014 Total Sales Volume of Medical and Retail Marijuana Infused Non -Edibles ..... 28 Table 10: 2014 Mandatory Retail Potency Testing for Edibles..................................................31 Table 11: 2014 Mandatory Retail Homogeneity Testing for Edibles.........................................32 Table 12: 2014 Due Diligence Investigations and Complaints....................................................36 Table13: Year End Business License Totals..................................................................................38 Table14: Assurance of Voluntary Compliance............................................................................38 Table15: Notices of Denial.............................................................................................................39 Table16: Summary Suspensions....................................................................................................39 Table17: Orders to Show Cause....................................................................................................40 Table18: Stipulation, Agreement, and Order..............................................................................40 42 6/2/2015 Status Report: Marijuana Regulation in Colorado After Six Months of Retail Sales and 18 Months of Decriminalization With the passage of Amendment 64 in November 2012, Colorado became the first state to regulate the cultivation, manufacture and sale of marijuana for adults 21 and over. It is far too early to make any definitive declarations about social trends. There are, however, some encouraging signs that have been documented in Colorado since the first retail stores officially opened on Jan. 1, 2014. Some of these trends are outlined below. Decrease in Crime Rates Crime rates are down in Denver, according to the FBI's Uniform Crime Reporting data. There has been a 10.1% decrease in overall crime from 2013 and a 5.2% drop in violent crime.' Additionally, the burglary and robbery rates at marijuana dispensaries have also dropped since legal sales began on January 1." "' This early crime data stands in contrast to concerns of a potential increase in crime after legalization. Tax Revenue According to the state's department of revenue, the first four months of legal marijuana sales have resulted in $10.8 million in taxes.' Governor Hickenlooper estimated sales in all marijuana stores will approach $1 billion for the 2014 fiscal year. Retail store sales are estimated to account for more than $600 million of that, more than 50 percent higher than initially projected. Though many industry advocates believe this estimate to be exaggerated, there will undoubtedly be increased tax revenues from retail marijuana sales. $40 million of the tax revenue raised through marijuana sales will be allocated to improving Colorado schools. The Colorado Department of Revenue estimates that approximately $1.9 million of this $40 million has been raised so far. Other tax revenue is proposed for youth and public education campaigns about marijuana.' Reduced Incarceration = Reduction of Collateral Consequences = Increased Savings Amendment 64 removed criminal penalties for certain marijuana -related offenses. According to the Colorado Center on Law and Policy, the state could save an estimated $12-40 million over the span of a year by reducing criminal penalties". (Others have estimated the state spends over $60 million enforcing marijuana prohibition at the levels now legal, so the CCLP estimate is probably on the conservative side.) Over the last decade, the state averaged more than 10,000 arrests and citations every year for minor marijuana possession at the levels now legal in the state.i" New Focus on Research Gov. Hickenlooper signed a bill that will provide $10 million for research into the medical efficacy of marijuana. Such research will help the state determine which medical conditions should be eligible for medical marijuana and help physicians better understand its biochemical effects. Additionally this research will add to the growing base of knowledge about proper dosing and potency and allow the state to conduct clinical trials."` Economic Benefits Gov. Hickenlooper compared Colorado's economy since legalization to that of other states by noting, "While the rest of the country's economy is slowly picking back up, we're thriving here in Colorado."x For example, the demand for commercial real estate has increased drastically, with houses in the state appreciating 8.7 percent in this timeframe."' The marijuana industry has developed quickly, generating hundreds of new jobs. The Marijuana Drug Policy Alliance 131 West 33rd Street, 15th Floor, New York, NY 10001 nyc@drugpolicy.org 212.613.8020 voice 1 212.613.8021 fax Page 1 6/2/2015 Industry Group (MIG) estimates there are currently about 10,000 people directly involved with this industry, with 1,000 to 2,000 gaining employment in the past few months alone ."ii There is a growing need for everything from greenhouses and fertilizer to pipes and vaporizers, compounding the economic benefits." Continued Support for Regulation After nearly six full months of regulated marijuana sales in Colorado, a majority of the state remains in favor of legalization and regulation. Initially, only two state legislators endorsed the constitutional amendment. Denver's mayor opposed it, as did Gov. Hickenlooper. However, Hickenlooper recently noted, after talking to an array of Colorado CEOs and companies looking to move to Colorado, that "they don't see it (marijuana legalization) as a workforce problem or an image problem" and that he is less concerned with legalization negatively impacting Colorado's economy"'". The voters of Colorado have an overall positive view of the experiment, with 54% of Colorado voters still supporting marijuana legalization and regulation." The state Department of Marijuana Enforcement has been actively engaged in a rulemaking process for retail marijuana sales that has included diverse representation from multiple stakeholders including elected state officials, parents, members of the marijuana industry, and consumers. Currently, there are extensive rules concerning packaging, labeling and safety warnings for all retail marijuana products — including edible marijuana products — sold in the state. Efforts to refine these regulations are ongoing."i 'hfti)://www.denvergov.org/Portals/720/documents/statistics/2 014/UCR Citywide Reported%20 Offenses 2014.pdf http://www. huffingtonL)ost.com/2014/06/16/marijuana-crime- denver n 5500611.html III hfto://www.denverpost.com/marijuana/ci 25969469/burglaries -at-denver-marijuana-shops-slow-but-industry "hfti)://www.colorado.gov/cs/Sateilite?blobcol=uridata&blobhe ader=application %2 Fpdf&blobkev=id&blobtable=M ungoBlobs &blobwh ere=1251994768665&ssbi na ry=true http://www. policymic.com/articles/89165/colorado-s- mari ivana-sales-keep-see i ng -green hfl)://www.vox.com/2014/6/10/5796422/colorado-made-a- lot-of-money-off-4-20 " http://www.huffingtonpost.com/2012/08/16/legalized- mariivana-could n 1791448.html#slide=889422 hitt ://www huffingtonpost.com/art-way/colorado-mariivana legalization b 4421617.html "hftp://www.leci.state.co.us/CIics/CLICS2014A/csl.nsf/fsbiIIcon t3/D9A3D581C1128B5D87257C620055A505?0pen&file=155 rev.0 ' http://www.buzzfeed.com/bensmith/colorado-governor-no- economic-damage-from-pot-legalization " http:/finsiderealestatenews.com/2014/04/01/colorado- homes-hit-highs/ x" http://mmig.org/ x ham://www vox.com/2014/5/20/5734394/legal-mariivana- created-thousan ds -of -lobs -i n-colorado — hfp://www.ci)r.org/news/story/mariivana-not-keeping- companies-away-colo-hickenlooper-saw " http://www.guinnil)iac.edu/news-and-events/guinnipiac- university-poll/colorado/release-detail? ReleaseI D=2035 `"' http://www,colorado.gov/cs/Satellite/Rev- M MJ/CBON/1251592984795 Drug Policy Alliance 1 131 West 33rd Street, 15th Floor, New York, NY 10001 nyc@drugpolicy.org 1 212.613.8020 voice 1 212.613.8021 fax Page 2 6/2/2015 �oG�Y �AOtt�,r�y d I�M ita.rse�ua. rcr wee . uun . sir ,.�.r7 �ar Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 THIS PAGE INTENTIONALLY LEFT BLANK Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Introduction Vol. 3 Preview 2015 Purpose..................................................................................................................................1 Preface....................................................................................................................................1 SECTION 1: Impaired Driving Definitions.............................................................................................................................3 Findings.................................................................................................................................3 Data........................................................................................................................................4 Colorado State Patrol Number of DUIDs, 2014.....................................................................4 Denver Police Department Number of DUIDs Involving Marijuana................................5 Aurora Police Department Number of DUIDs, 2014............................................................6 Larimer County Sheriff's Office Percent of DUIDs Involving Marijuana ..........................6 Number of DUI Admissions to Arapahoe House with Marijuana as a Self -Reported Drug of Choice............................................................................................7 Cannabinoid Screens Positive for THC................................................................................... 8 Positive THC 2ng/mL or Higher (Percent of Positive Screens with THC Confirmed) ....8 SECTION 2: Youth Marijuana Use Findings.................................................................................................................................9 Data......................................................................................................................................10 Colorado Average Past Month Use of Marijuana Ages 12 to 17 Years ............................10 Past Month Usage by 12 to 17 -Year -Olds, 2013...................................................................11 Average Past Month Use by 12 to 17 -Year -Olds, 2013 .......................................................12 Youth (Ages 12 to 17 Years) Past Month Marijuana Use National vs. Colorado ............ 12 Drug -Related Suspensions/Expulsions.................................................................................13 Average Drug -Related Suspensions/Expulsions.................................................................13 Percentage of Total Suspensions in Colorado from 2004-2014 School Years ..................14 Percentage of Total Expulsions in Colorado from 2004-2014 School Years.....................14 Percentage of Total Referrals to Law Enforcement in Colorado from 2004-2014 SchoolYears.......................................................................................................................15 State of Colorado Probation Average Percent Positive THC Urinalyses Ages12 to 17 Years............................................................................................................15 SECTION 3: Adult Marijuana Use Findings (College Age) ........................... Data................................................................... Table of Contents ............17 ............17 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Average Past Month Use of Marijuana College Age (18 to 25 -Years -Old) ......................17 College Age (18 to 25 -Years -Old) Past Month Marijuana Use..........................................18 State of Colorado Probation Number of Positive THC Urinalyses Ages 18 to 25 Years......................................................................................................................18 Findings(Adults)...............................................................................................................19 Data......................................................................................................................................19 Average Past Month Use of Marijuana Adults (Age 26+) ..................................................19 Adult (Age 26+) Past Month Marijuana Use........................................................................20 State of Colorado Probation Number of Positive THC Urinalyses Ages 26+ ..................20 SECTION 4: Emergency Room and Hospital Marijuana -Related Findings Data ....... Admissions ...............................................................................................................21 ..............................................................................................21 Emergency Department Rates Per 100,000 Marijuana -Related, 2011-2013 ...................... 22 Rates of Emergency Department (ED) Visits with Possible Marijuana Exposures, Diagnoses, or Billing Codes per 100,000 ED Visits by Year in Colorado...................23 Rates of Emergency (ED) Visits with Possible Marijuana Exposures, Diagnoses, or Billing Codes in the First Three Diagnosis Codes per 100,000 ED Visits by Yearin Colorado................................................................................................................24 Hospital Discharge Rates Per 100,000 Marijuana -Related, 2007-2013 ..............................25 Rates of Hospitalization (HD) Visits with Possible Marijuana Exposures, Diagnoses, or Billing Codes per 100,000 HD Visits by Year in Colorado..................26 Rates of Hospitalization (HD) Visits with Possible Marijuana Exposures, Diagnoses or Billing Codes in the First Three Diagnosis Codes per 100,000 HD Visitsby Year in Colorado...............................................................................................27 Marijuana Ingestion Among Children Under 12 Years-of-Age........................................28 SECTIONS: Marijuana -Related Exposure Findings...............................................................................................................................29 Data......................................................................................................................................29 Number of Exposures Reported for Marijuana Only.........................................................29 Marijuana -Related Exposures Children Ages 0 to 5...........................................................30 Average Percent of Marijuana Exposures Ages 0 to 5 ........................................................30 Number of Marijuana -Related Exposures, by Age Range.................................................31 Number of THC -Infused Edible Exposures.........................................................................31 SECTION 6: Treatment (NOTE: The most current data is not available.)..........................................................33 Table of Contents Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 SECTION 7: Diversion of Colorado Marijuana Definitions...........................................................................................................................35 Findings...............................................................................................................................35 Data......................................................................................................................................36 Colorado Marijuana Interdiction Seizures...........................................................................36 Average Pounds of Colorado Marijuana from Interdiction Seizures...............................37 States to Which Colorado Marijuana Was Destined (2014) ...............................................38 Top Three Cities of Marijuana Origin...................................................................................38 SECTION 8: Diversion by Parcel Findings...............................................................................................................................39 Data......................................................................................................................................39 Parcels Containing Marijuana Mailed from Colorado to Another State .......................... 39 Pounds of Colorado Marijuana Seized by the U.S. Postal Inspection Service ................40 SECTION 9: THC Extraction Labs Findings...............................................................................................................................41 Data......................................................................................................................................41 THC Extraction Lab Explosions.............................................................................................41 THC Extraction Lab Explosion Injuries................................................................................42 SECTION 10: Related Data Crime...................................................................................................................................43 All Reported Crime in Denver............................................................................................... 43 Denver Police Department Unlawful Public Display/Consumption of Marijuana ........ 43 Boulder Police Department Marijuana Public Consumption Citations ...........................44 Revenue...............................................................................................................................45 Total Revenue from Marijuana Taxes, Calendar Year 2014 ...............................................45 Marijuana Use and Alcohol Consumption.....................................................................46 Colorado Average Consumption of Alcohol in Gallons, Per Calendar Year..................46 Licensed Marijuana Businesses as of January 2015 .......................................................47 Business Comparisons as of January 2015.....................................................................47 Medical Marijuana Registry .............................................................................................48 Percent of Medical Marijuana Patients Based on Reporting Condition ...........................48 Local Response to Medical and Recreational Marijuana in Colorado .......................49 2014 Reported Sales of Marijuana in Colorado.............................................................49 ElectionResults..................................................................................................................50 November 2012 Amendment 64 Election Results............................................................... 50 Table of Contents Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Polling..................................................................................................................................50 September 2014 Suffolk University/USA Today Poll Colorado.........................................50 October 2014 Gallup Poll........................................................................................................50 October 2014 Pew Research Center Poll...............................................................................50 Table of Contents Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Introduction Purpose In August 2014, Rocky Mountain HIDTA published The Legalization of Marijuana in Colorado: The Impact Volume 2. The purpose of that report was to document the impact of Colorado legalizing marijuana for medical and recreational use. This dramatic change in drug policy provides an opportunity to gather and examine factual data on the results of marijuana legalization. The report allows citizens and policymakers to make an informed decision on this important issue. Rocky Mountain HIDTA intends to publish Volume 3 in late summer of 2015. However, based on numerous inquiries from community leaders, government officials, drug policy experts, media and citizens Rocky Mountain HIDTA elected to publish a preview of the most updated data available. This information will be included in Volume 3. Preface Volume 3 Preview 2015 will be formatted using the same ten sections used in Volume 2. It is important to note that, for purposes of the debate on legalizing marijuana in Colorado, there are three distinct timeframes to consider. Those are: The early medical marijuana era (2000 — 2008), the medical marijuana commercialization era (2009 — current) and the recreational marijuana era (2013 — current). • 2000 — 2008: In November 2000, Colorado voters passed Amendment 20 which permitted a qualifying patient and/or caregiver of a patient to possess up to 2 ounces of marijuana and grow 6 marijuana plants for medical purposes. During that time there were between 1,000 and 4,800 medical marijuana cardholders and no known dispensaries operating in the state. • 2009 — Current: Beginning in 2009 due to a number of events, marijuana became de facto legalized through the commercialization of the medical marijuana industry. By the end of 2012, there were over 100,000 medical marijuana Introduction Page 1 1 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 cardholders and 500 licensed dispensaries operating in Colorado. There were also licensed cultivation operations and edible manufacturers. • 2013 — Current: In November 2012, Colorado voters passed Constitutional Amendment 64 which legalized marijuana for recreational purposes for anyone over the age of 21. The amendment also allowed for licensed marijuana retail stores, cultivation operations and edible manufacturers. Introduction Page 1 2 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 SECTION 1: Impaired Driving Definitions DUID: Driving Under the Influence of Drugs (DUID) which can include alcohol in combination with drugs. This is an important measurement since the driver's ability to operate a vehicle was sufficiently impaired that it brought his or her driving to the attention of law enforcement. Not only the erratic driving but the subsequent evidence that the subject was under the influence of marijuana confirms the causation factor. Traffic fatalities related to marijuana will be addressed in Volume 3. The 2014 toxicology results are still being compiled. Findings • Impaired driving related to marijuana is increasing. • Statewide data is limited. SECTION 1: Impaired Driving Page 13 Folin #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Data 900 800 F1011 y G 600 G 500 r.. 0 A 400 � 300 z 200 100 0 Colorado State Patrol Number of DUIDs, 2014 DUIDs Marijuana Only DUIDs Involving Total Number of Marijuana DUIDs "MARIJUANA CITATIONS DEFINED AS ANY CITATION WHERE CONTACT WAS CITED FOR DRIVING UNDER THE INFLUENCE (DUI) OR DRIVING WHILE ABILITY IMPAIRED (DWAI) AND MARIJUANA INFORMATION WAS FILLED OUT ON TRAFFIC STOP FORM INDICATING MARIJUANA & ALCOHOL, MARIJUANA & OTHER CONTROLLED SUBSTANCES, OR MARIJUANA ONLY PRESENT BASED ON OFFICER OPINION ONLY (NO TOXICOLOGICAL CONFIRMATION)." - COLORADO STATE PATROL NOTE: 77 PERCENT OF TOTAL DUIDs INVOLVED MARIJUANA 41 PBRcENT OF TOTAL DUIDs INVOLVkt? MARIJUANA, ONLY. SOURCE: Colorado State Patrol, CSP Citations for Drug Impairment by Drug Type SECTION 1: Impaired Driving Page 1 4 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 70 0 50 0 40 0 a, 30 E Z 20 10 Denver Police Department Number of DUIDs Involving Marijuana r, (100'Ancrease) 2013 2014 NOTE: THE NUMBER OF DUID ARRESTS IS NOT REFLECTIVE OF THE TOTAL NUMBER OF PEOPLE ARRESTED FOR DRIVING UNDER THE INFLUENCE WHO ARE INTOXICATED ON NON -ALCOHOL SUBSTANCES. IF SOMEONE IS DRIVING BOTH INTOXICATED ON ALCOHOL AND INTOXICATED ON ANY OTHER DRUG (INCLUDING MARIJUANA), ALCOHOL IS ALMOST ALWAYS THE ONLY INTOXICANT TESTED FOR. A DRIVER WHO TESTS OVER THE LEGAL LIMIT FOR ALCOHOL WILL BE CHARGED WITH DUI, EVEN IF HE OR SHE IS POSITIVE FOR OTHER DRUGS. HOWEVER, WHETHER OR NOT HE OR SHE IS POSITIVE FOR OTHER DRUGS WILL REMAIN UNKNOWN BECAUSE OTHER DRUGS ARE NOT OFTEN TESTED FOR. *THE NUMBER OF DUID ARRESTS IN WHICH MARIJUANA WAS MENTIONED REFLECTS ANY DUID ARREST WHERE POSSIBLE MARIJUANA INTOXICATION IS MENTIONED BY THE OFFICER IN THE REPORT AND IS NOT NECESSARILY INDICATIVE OF LEGAL INTOXICATION. SOURCE: Denver Police Department, Traffic Investigations Bureau via Data Analysis Unit SECTION 1: Impaired Driving Page 1 5 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 200 Aurora Police Department Number of DUIDs, 2014 DUIDs Involving Marijuana Total DUIDs NOTE: 66 PERCENT OF TOTAL DUIDS INVOLVED MARIJUANA - SOURCE: Aurora Police Department, Traffic Division Larimer County Sheriff's Office Percent of DUIDs Involving Marijuana 60.00% 59.00% 58.00% d 57.00% 56.00% a 55.00% d d 54.00% a, 53.00% 52.00% 51.00% 2013 2014 NOTE: PERCENT OF ALL DUID BLOOD SAMPLES SUBMITTED FOR DRUG TESTING. SOURCE: Larimer County Sheriff's Office, Records Unit SECTION 1: Impaired Driving Page 1 6 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 0 500 H 400 ] 300 0 200 w d 100 Number of DUI Admissions to Arapahoe House with Marijuana as a Self -Reported Drug of Choice 2013 2014 SOURCE: Arapahoe House, Public Communications Office SECTION 1: Impaired Driving Page 1 7 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact 3,500 3,000 Cannabinoid Screens Positive for THC Vol. 3 Preview 2015 CE L500 1,000 500 0 2009 2010 SOURCE: ChemaTox Laboratory, Inc. z000 1,800 1,600 a 1,900 E 1,200 N ¢e 1,000 i. 8DO Y 600 G d 910 200 0 2011 2012 2013 Jan - Aug 2014 Positive THC 2ng/mL or Higher (Percent of Positive Screens with THC Confirmed) 2009 2010 2011 2012 2013 fan -Aug 2014 SOURCE: ChemaTox Laboratory, Inc. NOTE: THE ABOVE GRAPHS INCLUDE DATA FROM C_HEMATOX LABORATORY WHICH WAS MERGED WITH DATA SUPPLIED BY COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT - TOXICOLOGY LABORATORY. THE VAST MAJORITY OF THE SCREENS ARE DUID SUBMISSIONS FROM COLORADO LAW ENFORCEMENT. SECTION 1: Impaired Driving Page 1 8 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 SECTION 2: Youth Marmy'vana Use Findings Youth (ages 12 to 17 years) Past Month Marijuana Use, 2013 o National average for youth was 7.15 percent o Colorado average for youth was 11.16 percent ■ Colorado was ranked 3rd in the nation for current marijuana use among youth (56.08 percent higher than the national average) 0 In 2006, Colorado ranked 141hin the nation for current marijuana use among youth In just one year when Colorado legalized marijuana (2013), past month marijuana use among those ages 12 to 17 years increased 6_6 percent SECTION 2: Youth Marijuana Use Page 1 9 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Data 12.00% Ti>11=111! C 8.00% d d 6.0(No 4.00% a `10 1 M Average Past Month Use of Marijuana Ages 12 to 17 Years 2006-2008 2009-2012 2013 (Pre-Comuuercialization) (Post-Commerdalization) (Legalization) SOURCE: SAMHSA.gov, National Survey on Drug Use and Health 2012 and 2013 SECTION 2: Youth Marijuana Use Page 1 10 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Rhode Island Vermont Colorado Washington New Hampshire Oregon Hawaii Maine New Mexico Delaware Michigan Massachusetts Alaska Montana Connecticut Nevada Arizona New York California Florida Maryland Ohio Wisconsin Georgia South Carolina Missouri Pennsylvania Minnesota North Carolina Illinois Iowa Nebraska Virginia Tennessee Indiana Wyoming Texas Arkansas Idaho New Jersey Utah West Virginia North Dakota Oklahoma Mississippi South Dakota Louisiana Kansas Kentucky Alabama Past Month Usage by 12 to 17 -Year -Olds, 2013 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Average Percentage SOURCE: SAMHSA.gov, National Survey on Drug Use and Health 2012 and 2013 14.00% SECTION 2: Youth Marijuana Use Page 1 11 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact 12.0% d 10.0% ig w 8.0% d d 6.0% eo 4.0% 2.0% 0.0% Average Past Month Use by 12 to 17 -Year -Olds, 2013 Vol. 3 Preview 2015 Non -Medical Medical Marijuana Recreational/Medical Marijuana States States Marijuana States SOURCE: SAMHSA.gov, National Survey on Drug Use and Health 2012 and 2013 Youth (Ages 12 to 17 Years) Past Month Marijuana Use National vs. Colorado Commercialization Legalization 12.00 10.00 c >I8.00 6.00 d� d 4.00 op m 2.00 0.00 NOW OWN 2006 2007 2008 2009 2010 2011 2012 2013 ■ National Average 6.74 6.67 6.67 7.03 7.38 7.64 7.55 7.15 ■ Colorado Average 1 7.60 8.15 9.13 10.17 9.91 10.72 10.47 11.16 SOURCE: SAMHSA.gov, National Survey on Drug Use and Health, 2006-2013 SECTION 2: Youth Marijuana Use Page 1 12 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact .Itt Z 5,000 y 4,000 Cl1 0 3,000 2,000 3 1,000 Z 0 SOURCE: Vol. 3 Preview 2015 Drug -Related Suspensions/Expulsions LJ Legauzauun Academic Years Colorado Department of Education, 10 -Year Trend Data: State Suspension and Expulsion Incident Rates and Reasons 0 .o 6,000 5,000 4,000 Z 3,000 .� 2,000 d 1,000 > Q 0 Average Drug -Related Suspensions/Expulsions 2004-2005 2009-2010 to to 2008-2009 2013-2014 Academic Years SOURCE: Colorado Deparhment of Education, 10 -Year Trend Data: State Suspension and Expulsion Incident Rates and Reasons SECTION 2: Youth Marijuana Use Page 1 13 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Percentage of Total Suspensions in Colorado from 2004-2014 School Years m 7 Commercialization m d 6 ---- — r d m 5 _ 0 4 " 3.2 32 3.0 3.1 3.1 --*--Drug Violations 12 1,0 1.0 1.0 l 1�_. 1.1.._..-. 0.9 0.9 �1.01.0 (Alcohol Violations d 1 — — — — — a 0 Academic Years SOURCE: Colorado Department of Education, 10 -Year Trend Data: State Suspension and Expulsion Incident Rates and Reasons �45 C 40 7 �r d 30 0 25 F 0 20 d 15 ani 10 t; a 5 X Percentage of Total Expulsions in Colorado from 2004-2014 School Years —$--Drug Violations (Alcohol Violations Academic Years SOURCE: Colorado Department of Education, 10 -Year Trend Data: State Suspension and Expulsion Incident Rates and Reasons SECTION 2: Youth Marijuana Use Page 1 14 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact ,q. y 1~. 35 30 25 (..i 20 W 15 10 5 a� a 0 Vol. 3 Preview 2015 Percentage of Total Referrals to Law Enforcement in Colorado from 2004-2014 School Years 1 '*1 4 'D' ;D'� X0;4~ �,�;�~'L ��� ��� ` Ile l Academic Years Drug Violations —11 --Alcohol Violations SOURCE: Colorado Department of Education, 10 -Year Trend Data: State Suspension and Expulsion Incident Rates and Reasons > 40.00% y C 30.00% y G ani 20.00% y 10.00% At 0.00% State of Colorado Probation Average Percent Positive THC Urinalyses Ages 12 to 17 Years 2006-2008 2009-2012 2013-2014 (Pre -Commercialization) (Post -Commercialization) (Legalization) SOURCE: State of Colorado judicial Branch, Division of Probation Services SECTION 2: Youth Marijuana Use Page 1 15 Form #b3c62421-74844646-ac63-213ff7415f57 6/2/2015 THIS PAGE INTENTIONALLY LEFT BLANK SECTION 2: Youth Marijuana Use Page 1 16 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 SECTION 3: Adult Marijuana Use Findings (College Age) • College Age Adults (ages 18 to 25 years) Current Marijuana Use 2013 o National average —18.91 percent o Colorado average — 29.05 percent ■ Colorado was ranked 22nd in the nation for current marijuana use among college-age adults 53.62 percent higher than the national average) • In 2006, Colorado was ranked 81h in the nation for current marijuana use among college-age adults • In just one year when Colorado legalized marijuana (2013), past month marijuana use among college-age (18 to 25 years) use increased 8_4 percent Data 30.00% ++ 25.00% G d d 20.00% 15.00% 10.00% Q 5.00% 0.00% Average Past Month Use of Marijuana College Age (18 to 25 Years -Old) 2006-2008 2009-2012 2013 (Pre -Commercialization) (Post -Commercialization) (Legalization) SOURCE: SAMHSA.gov, National Survey on Drug Use and Health, 2006-2013 SECTION 3: Adult Marijuana Use Page 1 17 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 College Age (18 to 25 Years -Old) Past Month Marijuana Use Legalization Commercialization I 30 25 20 15 d 10 d 5 0 2006 2007 2008 2009 2010 2011 2012 2013 ■ National Average 16.42 16.34 16.45 17.42 18.39 18.78 18.89 18.91 ■ Colorado Average 21.43 22.21 23.44 24.28 26.35 27.26 26.81 29.05 SOURCE: SAMHSA.gov, National Survey on Drug Use and Health, 2006 - 2013 SM ? 20,000 i+ O p" 15,000 8 Z 10,000 M 11 State of Colorado Probation Number of Positive THC Urinalyses Ages 18 to 25 Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SOURCE: State of Colorado Judicial Branch, Division of Probation Services SECTION 3: Adult Marijuana Use Page 1 18 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Findings (AdUits) Data Adults (ages 26+ years) Current Marijuana Use 2013 o National average - 5.45 percent o Colorado average =10.13 percent ■ Colorado was ranked 51h in the nation for current marijuana use among adults 85.87 percent higher than the national average) • In 2006, Colorado was ranked 81h in the nation for current marijuana use among adults In just one year when Colorado legalized marijuana (2013), past month marijuana use among adults increased 32.8 percent 12.00% d 10.00% v d 8.00% 6.00% L 4 4.00% 2.00% 0.00 0 Average Past Month Use of Marijuana Adults (Age 26+) 2006-2008 2009-2012 2013 (Pre -Commercialization) (Post -Commercialization) (Legalization) SOURCE: SAMHSA.gov, National Survey on Drug Use and Health, 2006-2013 SECTION 3: Adult Marijuana Use Page 1 19 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Adult (Age 26+) Past Month Marijuana Use 12 Legalization 0 2006 2007 2008 2009 2010 M 2012 2013 ■ National Average 41 402 406 4.42 468 48 5.05 5.45 ■ Colorado Average 5.32 5.88 6.88 7.31 8.86 8.19 7.63 10.13 SOURCE: SAMHSA.gov, National Survey on Drug Use and Health, 2006-2013 fC'1 1"1'1 > 25,OW y 20,000 w d 15,000 Z 10,000 M State of Colorado Probation Number of Positive THC Urinalyses Ages 26+ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SOURCE: State of Colorado judicial Branch, Division of Probation Services SECTION 3: Adult Marijuana Use Page 1 20 Form #b3c62421-7484-4646-aC63-213ff7415f57 6/2/2015 10 In c 8 d p; 6 d 4 d 2 Legalization 0 2006 2007 2008 2009 2010 M 2012 2013 ■ National Average 41 402 406 4.42 468 48 5.05 5.45 ■ Colorado Average 5.32 5.88 6.88 7.31 8.86 8.19 7.63 10.13 SOURCE: SAMHSA.gov, National Survey on Drug Use and Health, 2006-2013 fC'1 1"1'1 > 25,OW y 20,000 w d 15,000 Z 10,000 M State of Colorado Probation Number of Positive THC Urinalyses Ages 26+ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SOURCE: State of Colorado judicial Branch, Division of Probation Services SECTION 3: Adult Marijuana Use Page 1 20 Form #b3c62421-7484-4646-aC63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 SECTION 4.% Emergency Room and Hospital M G.riliouana - Related Admissions Findings There has been an upward trend of marijuana -related emergency room visits and hospitalizations since medical marijuana was commercialized in 2009. There has also been a significant increase in both categories in the first six months of 2014 when retail marijuana businesses began operating. Data NOTE: "MARIJUANA -RELATED" IS ALSO REFERRED TO AS "MARIJUANA MENTIONS." THIS MEANS THE DATA COULD BE OBTAINED FROM LAB TESTS, SELF -ADMITTED OR SOME OTHER FORM OF VALIDATION BY THE PHYSICIAN. THAT DOES NOT NECESSARILY IMPLY MARIJUANA WAS THE CAUSE OF THE EMERGENCY ADMISSION OR HOSPITALIZATION. SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 1 21 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Emergency Department Rates Per 100,000 Marijuana -Related, 2011-2013 450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 2011 ■ Colorado 147.80 2012 179.00 2013 248.32 ■ Denver City and County 315.34 331.22 415.46 NOTE: THE HIGHEST RATES FROM 2011-2013 WERE AMONG YOUNG ADULTs'(18-25 YEARS). SOURCE: Denver Office of Drug Strategy, The Denver Drug Strategy Commission, Proceedings of the Denver Epidemiology Work Group (DEWG), October 29, 2014 SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 1 22 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Rates of Emergency Department (ED) Visits with Possible Marijuana Exposures, Diagnoses, or Billing Codes per 100,000 ED Visits by Year in Colorado 1200 0 0 o 800 0 0 y 400 9 M 2011 2012 2013 Jan -Jun 2014 "POSSIBLE MARIJUANA EXPOSURES, DIAGNOSES, OR BILLING CODES IN ANY OF LISTED DIAGNOSIS CODES: THESE DATA WERE CHOSEN TO REPRESENT THE HD AND ED VISITS WHERE MARIJUANA COULD BE A CAUSAL, CONTRIBUTING, OR COEXISTING FACTOR NOTED BY THE PHYSICIAN DURING THE HD OR ED VISIT. FOR THESE DATA, MARIJUANA USE IS NOT NECESSARILY RELATED TO THE UNDERLYING REASON FOR THE HD OR ED VISIT. SOMETIMES THESE DATA ARE REFERRED TO AS HD OR ED VISITS WITH ANY MENTION OF MARIJUANA." - COLORADO DEPARTMENT OF PuBuc HEALTH AND ENVIRONMENT, MONITORING HEALTH CONCERNS RELATED TO MARIJUANA IN COLORADO: 2014 NOTE: DktA NOT AVAIILABLE1912011.. SOURCE: Colorado Department of Public Health and Environment, Monitoring Health Concerns Related to Marijuana in Colorado: 2014 SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 123 Form #b3c62421-7484-4646-ac63-213"415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Rates of Emergency Department (ED) Visits with Possible Marijuana Exposures, Diagnoses, or Billing Codes in the First Three Diagnosis Codes per 100,000 ED Visits by 0 5W 0 0 0 400 0 200 100 0 Year in Colorado 2011 2012 2013 Jan -Jun 2014 "POSSIBLE MARIJUANA EXPOSURES, DIAGNOSES, OR BILLING CODES IN THE FIRST THREE DIAGNOSIS CODES: THESE DATA WERE CHOSEN TO REPRESENT THE HD AND ED VISITS WHERE MARIJUANA USE WAS LIKELY A CAUSAL OR STRONG CONTRIBUTING FACTOR TO THE UNDERLYING REASON FOR THE HD AND ED VISIT. THESE DATA CONSISTED OF HD AND ED VISITS CODED WITH DISCHARGE CODES RELATED TO POISONING BY PSYCHODYSLEPTICS OR SEPARATE CODES RELATED TO CANNABIS ABUSE IN THE FIRST THREE DIAGNOSIS CODES WHICH ARE MORE LIKELY TO BE CLINICALLY SIGNIFICANT CODES." - COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, MONITORING HEALTH CONCERNS RELATED TO MARIJUANA IN COLORADO: 2014 NOTE: DATA NOT AVAIL.A$LE ORE -2011. SOURCE: Colorado Department of Public Health and Environment, Monitoring Health Concerns Related to Marijuana in Colorado: 2014 SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 1 24 Form #b3c62421-74844646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Hospital Discharge Rates Per 100,000 Marij uana-Related, 2007-2013 300.00 0 0 200.00 0 0 d 150.00 a 100.00 50.00 0.00 2007 2008 2009 2010 2011 2012 1 2013 —*—Denver City and County 129.90 146.76 15481 201.20 189.08 190.51 1 245.94 _ ...... -*-Colorado 77.15 87.50 89.88 114.18 117.48 123.65 . 148.80 NOTE: THE HIGHEST RATES FROM 2011-2013 WERE AMONG YOUNG ADULTS (18-25 YEARS). SOURCE: Denver Office of Drug Strategy, The Denver Drug Strategy Commission, Proceedings of the Denver Epidemiology Work Group (DEWG), October 29, 2014 NOTE: HOSPITAL DISCHARGE DATA REPRESENTS AN INDIVIDUAL'S INPATIENT STAY AT A HOSPITAL REQUIRING, AT MINIMUM, AN OVERNIGHT STAY, AND IS IN REFERENCE TO WHEN THE PATIENT LEAVES THE HOSPITAL. A CODE IS ASSIGNED AS TO WHY THE PATIENT WAS IN THE HOSPITAL, CALLED THE ICD-9 CODE, WHICH IS USED FOR BOTH THE PATIENT'S MEDICAL RECORD AND FOR BILLING PURPOSES. SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 1 25 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Rates of Hospitalization (HD) Visits with Possible Marijuana Exposures, Diagnoses, or Billing Codes per 100,000 HD Visits by Year in Colorado 2500 0011rR 0 0 0 o` 1500 d 1000 r.r a01 U 2006 2007 2008 2009 2010 2011 2012 2013 Jan -Jun 2014 "POSSIBLE MARIJUANA EXPOSURES, DIAGNOSES, OR BILLING CODES IN ANY OF LISTED DIAGNOSIS CODES: THESE DATA WERE CHOSEN TO REPRESENT THE HD AND ED VISITS WHERE MARILUANA COULD BE A CAUSAL, CONTRIBUTING, OR COEXISTING FACTOR NOTED BY THE PHYSICIAN DURING THE HD OR ED VISIT. FOR THESE DATA, MARIJUANA USE IS NOT NECESSARILY RELATED TO THE UNDERLYING REASON FOR THE HD OR ED VISIT. SOMETIMES THESE DATA ARE REFERRED TO AS HD OR ED VISITS "WITH ANY MENTION OF MARIJUANA."' - COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, MONITORING HEALTH CONCERNS RELATED TO MARIJIIUWA IN COLORADO: 2014 SOURCE: Colorado Department of Public Health and Environment, Monitoring Health Concerns Related to Marijuana in Colorado: 2014 SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 1 26 Forth #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Rates of Hospitalization (HD) Visits with Possible Marijuana Exposures, Diagnoses, or Billing Codes in the First Three Diagnosis Codes per 100,000 HD Visits by Year in 600 0 500 0 0 0 400 0 r4 d 300 w .a 200 a 100 0 Colorado Legalization 2006 2007 2008 2009 2010 2011 2012 2013 Jan -jun 2014 "POSSIBLE MARIJUANA EXPOSURES, DIAGNOSES, OR BILLING CODES IN THE FIRST THREE DIAGNOSIS CODES: THESE DATA WERE CHOSEN TO REPRESENT THE HD AND ED VISITS WHERE MARIiUANA USE WAS LIKELY A CAUSAL OR STRONG CONTRIBUTING FACTOR TO THE UNDERLYING REASON FOR THE HD AND ED VISIT. THESE DATA CONSISTED OF HD AND ED VISITS CODED WITH DISCHARGE CODES RELATED TO POISONING BY PSYCHODYSLEPTICS OR SEPARATE CODES RELATED TO CANNABIS ABUSE IN THE FIRST THREE DIAGNOSIS CODES WHICH ARE MORE LIKELY TO BE CLINICALLY SIGNIFICANT CODES."- COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, MONITORING HEALTH CONCERNS RELATED TO MARIJUANA 1N COLORADO: 2014 SOURCE: Colorado Department of Public Health and Environment, Monitoring Health Concerns Related to Marijuana in Colorado: 2014 SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 127 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 12 10 Marijuana Ingestion Among Children Under 12 Years -of -Age 2009 2010 2011 2012 2013 Jan -Jun 2014 SOURCE: Dr. George Sam Wang, pediatric emergency physician, Children's Hospital Colorado, July 8, 2014 SECTION 4: Emergency Room and Hospital Marijuana -Related Admissions Page 1 28 Form #b3c62421-7484-4646-ac63-213ft7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 SECTION 5: Marijuana -Related Exposure Findings • There has been an upward trend of marijuana -related calls to the Rocky Mountain Poison and Drug Center since medical marijuana was commercialized in 2009. • In 2014, when marijuana retail businesses began operating, marijuana -related calls increased over 70 percent from 2013. Data 160 140 OW0 120 m 100 (Il Q Q. 80 OV W Q 60 V W 3 40 z 20 0 Number of Exposures Reported for Marijuana Only 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SOURCE: Colorado Department of Public Health and Environment, Monitoring Health Concerns Related to Marijuana in Colorado: 2014 via Rocky Mountain Poison and Drug Center SECTION 5: Marijuana—Related Exposure Page 1 29 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 40 X3.1 30 m 025 a 20 r Z 15 6 Z 10 5 0 Marijuana -Related Exposures Childen Ages 0 to 5 2006 2007 2008 2009 2010 2011 2012 2013 2014 SOURCE: Rocky Mountain Poison and Drug Center 18.00% �111=10 t 14.00% Ir. 12.00% 10.00% a 8.00% i 6.00% Q 4.00% 2.00% 0.000/0 Average Percent of Marjuana Exposures Ages 0 to 5 2006-2009 2010-2012 20132014 ■ National ■ Colorado SOURCE: Rocky Mountain Poison and Drug Center SECTION 5: Marijuana—Related Exposure Page 1 30 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 o. 250 a W 200 K C 150 R 100 W V d 5 50 0 Z Number of Marijuana Related Exposures, by Age Range 015yrs 6-12yrs 13-14yrs 15-17yrs 18-25yrs 26+ yrs Age Range SOURCE: Rocky Mountain Poison and Drug Center 100 H 80 Fd1y .7 Number of THC Infused Edible Exposures ■ 2005-2009 ■ 2010-2014 2013 2014 SOURCE: Rocky Mountain Poison and Drug Center SECTION 5: Marijuana—Related Exposure Page 131 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 THIS PAGE INTENTIONALLY LEFT BLANK SECTION 5: Marijuana—Related Exposure Page 1 32 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact SECTION 6,,,* treatment Data Vol. 3 Preview 2015 NOTE: THE MOST CURRENT DATA I3 NOT AVAILABLE. SEE T)RE LEGt1 .IZATm OF MARIJUANA W COLORADo: M IMPAcr, VOLUME 2, AUGUST 2014. SECTION 6: Treatment Page 133 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 THIS PAGE INTENTIONALLY LEFT BLANK SECTION 7: Diversion of Colorado Marijuana Page 1 34 Form *b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 ,SECTION 7: Diversion of Colorado Marijuana Definitions Colorado Marijuana Interdiction Seizures: Incidents where highway or state patrols stopped a driver for a traffic violation and subsequently found Colorado marijuana destined for other parts of the country. These interdiction seizures are reported on a voluntary basis to the National Seizure System (NSS) managed by the El Paso Intelligence Center (EPIC). These are random traffic stops, not investigations, and do not include local police. NOTE: A 2014 SURVEY OF APPROXIMATELY 100 INTERDICTION EXPERTS ESTIMATE THEY SEIZE 10 PERCENT OR LESS OF WHAT GETS THROUGH UNDETECTED. Findings Prior to the commercialization of medical marijuana in 2009, there was a yearly average of 52 interdiction seizures between 2005 and 2008. In 2014, there were 360 interdiction seizures of Colorado marijuana destined for other states. o This is a 592 percent increase. In just one year, 2013 to 2014 when marijuana retail stores began operating, there was a 25 percent increase in the number of interdiction seizures. SECTION 7: Diversion of Colorado Marijuana Page 135 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Data t�t Colorado Marijuana Interdiction Seizures M 0 DI 2005 2006 2007 2008 2009 2010 2011 2012) 2013 2014 SOURCE: El Paso Intelligence Center, National Seizure System, as of March 20, 2015 SECTION 7: Diversion of Colorado Marijuana Page 1 36 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 4,000 .6 3,500 e '0 3.000 o Z500 d E 2000 Z 1,500 d 1,000 d d 500 Average Pounds of Colorado Marijuana from Interdiction Seizures 2005-2008 2009-2014 (Pre-Commerdahzation) (Post -Commercialization) SOURCE: El Paso Intelligence Center, National Seizure System, as of March 20, 2015 SECTION 7: Diversion of Colorado Marijuana Page 1 37 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 States to Which Colorado Marijuana Was Destined (2014) (Total Reported Incidents per State) SOURCE: El Paso Intelligence Center, National Seizure System, as of March 20, 2015 Top Three Cres of Marijuana Origin Number of Seizures from Originating City Rank Percentage Originating City 1. Denver 227 63.06% 2. Yuma 20 5.56% 3. Colorado Springs 14 3.89% SECTION 7: Diversion of Colorado Marijuana Page 1 38 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 SECTION 8: Diversion by Parcel Findings • From 2010 through 2014, the number of parcels with Colorado marijuana destined for other states increased 2,033 percent. • In just one year, from 2013 to 2014 when retail marijuana businesses began operating, there was a 55 percent increase in Colorado marijuana seized in the mail. Data 0 250 200 w 0 150 old 01 0 Parcels Containing Marijuana Mailed from Colorado to Another State 2009 2010 2011 2012 2013 2014 SOURCE: United States Postal Inspection Service, Prohibited Mailing of Narcotics, as of January 21, 2015 SECTION 8: Diversion of Colorado Marijuana by Parcel Page 139 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 Pounds of Colorado Marijuana Seized by the U.S. Postal Inspection Service W01 2009 2010 2011 2012 2013 2014 SECTION 8: Diversion of Colorado Marijuana by Parcel Page 1 40 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 SECTION 9: THC Extraction Labs Findings • In one year, from 2013 to 2014 when retail marijuana businesses began operating, there was a 167 percent increase in explosions involving THC extraction labs. Data 35 Ell 0 25 0 Qd 20 W 15 a 8 Z 10 C THC Extraction Lab Explosions 2009 2010 2011 2012 2013 2014 SOURCE: Rocky Mountain HIDTA, Investigative Support Center Section 9: THC Extraction Labs Page 1 41 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015 d 25 S 20 w O Lr 15 8 0 Z 10 5 I$] THC Extraction Lab Explosion Injuries 2009 2010 2011 2012 2013 2014 SOURCE: Rocky Mountain HIDTA, Investigative Support Center Section 9: THC Extraction Labs Page 142 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 SECTION 10: Related Data Crime '+� .> 2012 2013 2014 5,391 reported 43,867 reported 48,147 reported 49,258 reported crimes increase from 2012 through crimes crimes crimes 2014(+12.3 percent) SOURCE: National Incident Based Reporting System definitions in the City and County of Denver, January 9, 2015 0 Wo 700 600 5W a400 0 300 L 200 7 100 z 0 Denver Police Department Unlawful Public Display/Consumption of Marijuana 2012 2013 2014 SOURCE: Denver Police Department, Traffic Operations Bureau via Vice/Drag Bureau Section 10: Related Data Page 1 43 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 140 120 Boulder Police Department Marijuana Public Consumption Citations Z 40 20 0 2013 2014 NOTE: THE Cm OF BOULDER vw NOT HAVE A MUNICIPAL STATUTE;SPECIFIC TO PUBLIC CONSUMPTION OF MARIJUANA UNTIL MID -2073« SOURCE: Boulder Police Department, Records and Information Services Section 10: Related Data Page 144 Form #b3c62421-7484-4646-ac63-213fF7415f57 6/2/2015 Revenue Total Revenue from Marijuana Taxes, Calendar Year 2014 60,000,000 50,000,000 40,000,000 4 a c 30,000,000 20,000,000 10,000,000 0 2.9% Regular 10% Special 15% Excise Total 2014 Taxes Sales Sales ■ Retail Marijuana Taxes ■ Medical Marijuana Taxes NOTE: FIGURES DO NOT INCLUDE ANY CITY TAXES: THE STATE DOES NOT ASSESS OR COLLECT THOSE TAXES. NOTE: THE FIRST TWELVE MONTHS OF RETAIL MARIJUANA TAX REVENUE WOULD BE EQUIVALENT TO FOUR -TENTHS OF 1 PERCENT (0.4 %) OF COLORADO'S FY2014 GENERAL FUND REVENUE. SOURCE: Colorado Department of Revenue, Monthly Marijuana Taxes, Licenses and Fees Transfers and Distribution Section 10: Related Data Page 145 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Marijuana Use and Alcohol Consumpflon One argument of those in favor of legalization is that users will switch from alcohol to marijuana, thus reducing consumption. To date, that theory is not supported by the data. Colorado Average Consumption of Alcohol in Gallons, Per Calendar Year 143,000,000 = 141,000,000 0 139,000,000 V 137,000,000 2011-2012 2013-2014 SOURCE: Colorado Deparhnent of Revenue, Colorado Liquor Excise Taxes Section 10: Related Data Page 146 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Licensed Marijuana Businesses as of January 2015 Medical Marijuana:' • 505 medical marijuana centers ("dispensaries") • 748 marijuana cultivation facilities • 163 infused products (edibles) businesses Recreational Marijuana:' • 322 marijuana retail stores • 397 marijuana cultivation facilities • 98 infused product (edibles) businesses Business Comparisons as of January 2015 Colorado: • 505 medical marijuana centers ("dispensaries")' • 322 recreational marijuana stores' • 405 Starbucks coffee shopsz • 227 McDonalds restaurants3 Denver: • 198 licensed medical marijuana centers ("dispensaries")' • 117 pharmacies (as of February 12, 2015)4 ' Colorado Department of Revenue, Enforcement Division — Marijuana, Annual Update, February 27, 2015 z Starbucks Coffee Company, Corporate Office Headquarters 3 McDonalds Corporation, Corporate Office Headquarters 4 Colorado Department of Regulatory Agencies, State Board of Pharmacy Section 10: Related Data Page 1 47 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Medical Marijuana Registry Medical Marijuana Registry Identification Cards • December 31, 2009 — 41,039 • December 31, 2010 —116,198 • December 31, 2011— 82,089 • December 31, 2012 —108,526 • December 31, 2013 —110,979 • December 31, 2014 —115,467 Percent of Medical Marijuana Patients Based on Reporting Condition 100% 90% 80% 70% y 60% d A 50% W 40% Jl% 20% a, 10% 0% Al OF vo 4V Z NOTE: TOTAL DOES NOT EQUAL 100 PERCENT AS SOME PATIENTS REPORT USING MEDICAL MARIJUANA FOR MORE THAN ONE DEBILITATING MEDICAL CONDITION. SOURCE: Colorado Department of Public Health and Environment, Medical Marijuana Statistics Section 10: Related Data Page 148 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Local Response to Medical and Recreational Marijuana in Colorado5 • 321 total local jurisdictions o 228 (71 percent) prohibit any medical or recreational marijuana businesses 0 67 (21 percent) allow any medical and recreational marijuana businesses 0 26 (8 percent) allow either medical or recreational marijuana businesses, not both 2014 Reported Sales of Marijuana in Colorado5 • 109,578 pounds of medical marijuana flower • 36,600 pounds of recreational marijuana flower • 1,964,917 units of medical edible products • 2,850,733 units of recreational edible products 5 Colorado Department of Revenue, Enforcement Division - Marijuana, Annual Update, February 27, 2015 Section 10: Related Data Page 1 49 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Election Results November 2012 Amendment 64 Election Results: • 54 percent in favor • 46 percent opposed Polling September 2014 Suffolk University/USA Today Poll Colorado • 46 percent continue to support Amendment 64 • 50.2 percent do not agree with Amendment 64 decision October 2014 Gallup Poll Favor Legalized Oppose Legalized Unsure 2013 58 percent 39 percent 3 percent 2014 51 percent 47 percent 2 percent October 2014 Pew Research Center Poll Favor Legalized 01212ose Legalized Unsure Feb. 2014 54 percent 42 percent 3 percent Oct. 2014 52 percent 45 percent 3 percent SOURCE: Polling Report.com Section 10: Related Data Page 1 50 Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 THIS PAGE INTENTIONALLY LEFT BLANK Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 Rocky Mountain High Intensity Drug Trafficking Area Investigative Support Center Denver, Colorado www.rmhidta.org[reports Form #b3c62421-7484-4646-ac63-213ff7415f57 6/2/2015 TOWN OF VAIN VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail. PRESENTER(S): George Ruther, Director of Community Development ACTION REQUESTED OF COUNCIL: Approve, approve with modifications or deny Ordinance No. 6, Series of 2015 on first reading BACKGROUND: The purpose of this memo is to present Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail to the Vail Town Council on first reading. If approved, this new regulation accomplishes five objectives: 1.) further protects the public health, safety, and welfare of the community by regulating sensitive stream tract areas in the Town, 2.) prohibits private encroachments in stream tract areas, 3.) further ensures that the stream tract areas remain natural open space and serve the purposes for which they were intended, 4.) creates a procedure by which the Town may abate an encroachment and seek reimbursement, and 5.) establishes a mandatory violation and penalty provision for failure to comply. STAFF RECOMMENDATION: The Community Development Department and the Town Attorney's Office recommends the Vail Town Council adopts Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail, on first reading. ATTACHMENTS: Stream Tract Memorandum 060215 Ordinance No. 6, Series of 2015 6/2/2015 rowN of vain Memorandum To: Vail Town Council From: George Ruther, Director of Community Development Matt Mire, Town Attorney Date: June 2, 2015 Subject: Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail. I. PURPOSE The purpose of this memo is to present Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail to the Vail Town Council on first reading. If approved, this new regulation accomplishes five objectives: 1.) further protects the public health, safety, and welfare of the community by regulating sensitive stream tract areas in the Town, 2.) prohibits private encroachments in stream tract areas, 3.) further ensures that the stream tract areas remain natural open space and serve the purposes for which they were intended, 4.) creates a procedure by which the Town may abate an encroachment and seek reimbursement, and 5.) establishes a mandatory violation and penalty provision for failure to comply. This agenda item affects and impacts the following 2014 Areas of Focus of the Vail Town Council: Enhance Economic Vitality Elevates the Quality of the Experience II. BACKGROUND On October 6, 2009, Town Council adopted a "zero tolerance" policy for allowing illegal private encroachments on town -owned stream tract lands and instructed staff to pursue removal of all encroachments. The Community Development Department inspected and originally discovered 68 private encroachments and disturbances into the public 6/2/2015 stream tracts. These inspections identified numerous properties that have modified or encroached onto sensitive riparian areas including, but not limited to; landscaping town - owned riparian property; building decorative planters; using the areas for recreational seating; or in more severe cases building structures, such as patios and a basketball court on town -owned properties. In many cases Town staff has been able to work with owners to mitigate private encroachments resulting in written agreements by owners to stop mowing and/or removal of structures that will result in restoration of the stream tract to its natural state. To date, the Town has received voluntary compliance with many property owners and restored the stream tract areas back to a more natural condition. Unfortunately, in too many other instances property owners have refused to acknowledge the Town's ownership interest in the stream tract, failed to cooperate resulting in additional actions being taken, including the issuance of citations for trespass. Regardless, the process has been costly, labor intensive, time consuming and more often than not, ineffective. III. RECOMMENDATION The Community Development Department and the Town Attorney's Office recommends the Vail Town Council adopts Ordinance No. 6, Series of 2015, an Ordinance Amending Title 5 of the Vail Town Code by the Addition of a New Chapter 13, Entitled "Stream Tract Protection", to Prohibit Private Improvements on Stream Tract Property in the Town of Vail, on first reading. As proposed, the new ordinance compliments other regulatory provisions within the Vail Town Code and adds an additional compliance tool which the Town may use to protect sensitive stream tract and riparian areas from the negative impacts of private encroachments. Further, the town staff believes that this Ordinance, as drafted and proposed, achieves the five objectives stated in Section I of this memorandum. Town of Vail Page 2 6/2/2015 ORDINANCE NO. 6 SERIES 2015 AN ORDINANCE AMENDING TITLE 5 OF THE VAIL TOWN CODE BY THE ADDITION OF A NEW CHAPTER 13, ENTITLED "STREAM TRACT PROTECTION", TO PROHIBIT PRIVATE IMPROVEMENTS ON STREAM TRACT PROPERTY IN THE TOWN WHEREAS, the Town of Vail (the "Town") is the owner of certain real property consisting of natural riparian area along the creeks and streams within the Town; WHEREAS, the Town is committed to environmental protection and stewardship, open space conservation and ecosystem health; WHEREAS, over time, private encroachments such as landscaping, patios and other improvements from properties adjacent to stream tracts have been constructed and maintained within the Town's riparian areas without permission or authorization from the Town; WHEREAS, these private encroachments are not in keeping with the use of stream tracts as naturalized open space, and further, such private improvements significantly damage these sensitive riparian areas and impede their use and enjoyment as public open space; WHEREAS, for example, in 1999 the Town of Vail acquired the parcel shown as Tract C on the Plat for Vail Village, Eleventh Filing, which is situated immediately adjacent to Gore Creek along the southernmost boundary of the Eleventh Filing; WHEREAS, the deed by which the Town acquired Tract C provides that the Town may further restrict the uses on and within Tract C; WHEREAS, pursuant to the Town's authority to regulate for the public health, safety and welfare, the Town Council desires to clarify that Town stream tracts shall be used primarily as natural open space, and private encroachments are prohibited in these areas; and WHEREAS, to protect such stream tracts, the Town Council desires to amend the Vail Town Code through the addition of a new Chapter 13 to Title 5. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Title 5 of the Vail Town Code is hereby amended by the addition of a new Chapter 13, to read as follows: 1 5/28/2015 IIVWS-STORAGEIDESKTOPS$ISBELLMIDESKTOPITC STREAMTRACT 060ZSTREAM TRACT-0052815.DOCX 6/2/2015 Chapter 13 STREAM TRACT PROTECTION 5-13-1: PURPOSE: The purpose of this Chapter is to protect the public health, safety and welfare by regulating sensitive stream tract areas in the Town, prohibiting private encroachments in such areas and ensuring that such areas remain natural open space. 5-13-2: DEFINITIONS: For purposes of this Chapter, the following terms shall have the following meanings: DIRECTOR: The Community Development Director or designee. ENCROACHMENT: A private improvement of any kind located in the stream tract, whether temporary or permanent in nature, including without limitation landscaping, irrigation systems, garden improvements, patios, decks, fencing, retaining walls, sheds, pathways, gravel, concrete, outdoor furniture, benches and play equipment. STREAM TRACT: A lot, tract or parcel of real property located in the Town, owned by the Town and situated along or adjacent to a creek, stream or other natural waterway. 5-13-3: USE OF STREAM TRACT: Except as otherwise expressly provided in this Chapter, every stream tract shall be used primarily for natural open space purposes, or for limited public, pedestrian or recreational uses as may be determined by the Town to be appropriate for the stream tract. 5-13-4: ENCROACHMENTS PROHIBITED: A. No person other than the Town shall erect, construct or maintain, or cause or permit the erection, construction or maintenance of, any encroachment on a stream tract. B. Notwithstanding the foregoing, the Town may authorize an encroachment on a stream tract, upon a finding by the Town Council that the encroachment is not inconsistent with the designated uses of the stream tract and will not detrimentally impact the environmental values of the stream tract. Such authorization shall be evidenced by a resolution adopted by the Town Council and recorded in the real property records of Eagle County. 2 5/28/2015 IIVWS-STORAGEIDESKTOPS$ISBELLMIDESKTOPITC STREAMTRACT OWZSTREAM TRACT-0052815.DOCX 6/2/2015 5-13-5: REMOVAL OF VEGETATION PROHIBITED: It is unlawful for any person other than the Town to mow, trim, cut or remove any grasses, trees or other vegetation in a stream tract without prior written authorization from the Director, which authorization may be withheld if the Director determines, in the Director's sole discretion, that such activity would be detrimental to environmental value of the stream tract. 5-13-6: NOTICE OF VIOLATION: A. If the Director determines that there is an encroachment onto a stream tract in violation of this Chapter, the Director shall provide written notice of the violation, by first-class U.S. mail to the record owner of the adjacent real property or the owner of the encroachment, if different, at the owner's last known address. B. The notice shall: 1. Advise the owner of the nature of the unlawful encroachment; 2. Advise the owner of Town -approved methods for the removal of the encroachment and any rehabilitation required to restore the stream tract to its natural condition; and 3. Advise the owner that the encroachment shall be removed and the stream tract restored to its natural condition completed within thirty (30) days following the date of the notice. C. If the owner disputes that a violation exists, the owner shall notify the Director in writing of such dispute within seven (7) days of the date of the notice. If a timely notice of dispute is given, the Town shall not proceed with abatement until the Director has met with the disputing party in an effort to resolve the dispute. If the Director meets with the owner and is unable to resolve the dispute, and the owner fails to comply with the notice as described above, the Town may proceed with abatement pursuant to Section 5-13-7. 5-13-7: ABATEMENT: A. If the owner fails to timely and fully comply with the notice described in Section 5-13-6, the Town may complete the removal of the encroachment and the associated restoration activities and recover its costs as provided in subsection D hereof. 3 5/28/2015 IIVWS-STORAGEIDESKTOPS$ISBELLMIDESKTOPITC STREAMTRACT OWZSTREAM TRACT-0052815.DOCX 6/2/2015 B. The Town shall not be responsible for any property loss or damage that occurs in connection with abatement pursuant to this Section. C. In the case of an emergency involving imminent danger to the public health, safety or welfare, the Town may authorize the immediate removal of any encroachments without notice. D. The owner shall be assessed twice the entire cost of removal of the encroachments and restoration activities. If all costs and charges incurred by the Town are not paid within thirty (30) days of the date of the assessment, the unpaid costs shall be certified to the Eagle County Treasurer for collection in the same manner as real property taxes. 5-13-8: VIOLATION AND PENALTY: A. It is unlawful for any person to violate any provision of this Chapter. Each separate act in violation of this Chapter, or each and every day or portion thereof during which any separate act in violation of this Chapter is committed, continued or permitted, shall be deemed a separate offense. B. Violations of this Chapter shall be punished as follows, and such penalties shall not be waived, reduced or deferred by the Municipal Court: First offense in any 12 -month period: $100. Second offense in any 12 -month period: $200. Third offense in any 12 -month period: mandatory appearance in the Municipal Court and the General Penalty provided in Section 1- 4-1. C. Town police officers and code enforcement officers are authorized to issue a summons and complaint for a violation of this Chapter. D. The penalties in this Section shall not be the Town's exclusive remedies for addressing encroachments on a stream tract, and nothing in this Section shall preclude any other remedy or penalty for addressing encroachments on Town -owned property. A person may be charged with a violation of this Chapter as well as trespass or any other applicable criminal violation. Section 2. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it 4 5/28/2015 IIVWS-STORAGEIDESKTOPS$ISBELLMIDESKTOPITC STREAMTRACT OWZSTREAM TRACT-0052815.DOCX 6/2/2015 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. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 2nd day of June, 2015 and a public hearing for second reading of this Ordinance set for the day of , 2015, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Andrew P. Daly, Mayor ATTEST: Patty McKenny, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of , 2015. Andrew P. Daly, Mayor ATTEST: Patty McKenny, Town Clerk 5 5/28/2015 IIVWS-STORAGEIDESKTOPS$ISBELLMIDESKTOPITC STREAMTRACT 060ZSTREAM TRACT-0052815.DOCX 6/2/2015 TOWN OF VAIN VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 2, 2015 ITEM/TOPIC: Adjournment (8:25 p.m.) 6/2/2015