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
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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.
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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
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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
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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
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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.
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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
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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
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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.
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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
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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
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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.
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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
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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)
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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
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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
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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.
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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
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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.
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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.
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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.
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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� -�, .
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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
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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
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Director of Public Works and
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Office: 1.9 70.4 79.2160
ghall@vailgov.com
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Vail Golf and Nordic Clubhouse
• Design Consultants:
• Kitchen Consultant:
• Construction Management/General Contractor
(CMGC) Selection and Preconstruction Services:
• Temporary Structure:
• Design/Schedule:
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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
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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.
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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
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The Legalization of Marijuana in Colorado: The Impact Vol. 3 Preview 2015
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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SECTION 7: Diversion of Colorado Marijuana Page 1 34
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,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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Rocky Mountain High Intensity Drug Trafficking Area
Investigative Support Center
Denver, Colorado
www.rmhidta.org[reports
Form #b3c62421-7484-4646-ac63-213ff7415f57
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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:
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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.
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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.
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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
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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
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TOWN OF VAIN
VAIL TOWN COUNCIL AGENDA MEMO
MEETING DATE: June 2, 2015
ITEM/TOPIC: Adjournment (8:25 p.m.)
6/2/2015