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HomeMy WebLinkAbout2019-06-04 Agenda and Supporting Documentation Town Council Evening Meeting Agenda VAIL TO W N C O U N C IL R E G U L AR ME E TIN G Evening Agenda Town Council C hambers 6:00 P M, June 4, 2019 Notes: Times of items are approximate, subject to c hange, and cannot be relied upon to determine what time C ounc il will consider an item. Public comment will be taken on each agenda item. Citizen participation offers an opportunity for citizens to express opinions or ask questions regarding town services, policies or other matters of community conc ern, and any items that are not on the agenda. Please attempt to keep c omments to three minutes; time limits established are to provide efficienc y in the c onduct of the meeting and to allow equal opportunity for everyone wishing to speak. 1.Citizen Participation (10 min.) 2.Consent Agenda (5 min.) 2.1.May 7, 2019 Town Council Meeting Minutes 2.2.May 21, 2019 Town Council Meeting Minutes 2.3.Holy Cross Energy Bridge Road Agreement Background: The Bridge Road Bridge Replacement project requires relocation of existing Holy Cross Energy infrastructure from the existing bridge structure to the new bridge structure. Holy Cross Energy requires an executed Trench, Conduit and Vault agreement for this work to be performed. 2.4.Letter of Support for Mountain Travel Symposium 2.5.Resolution No. 25, Series of 2019 A Resolution approving an I ntergovernmental Agreement between the Town of Vail and Eagle River W ater and Sanitation District for the Gore Valley Trail at Dowd J unction Repair Project Background: The town and E RW S D entered into an I GA in 2015 for the design of streambank stabilization along Gore Creek in Dowd J unction. The design project has now moved into the construction phase. A new I GA for construction of the streambank stabilization now needs to be entered into, in order to implement the project. 2.6.Dowd J unction Streambank Stabilization Contract Award to W hinnery Construction in an amount not to exceed $542,320. Background: The town and E RW S D have publically bid a joint Dowd J unction streambank stabilization project in order to protect the Dowd June 4, 2019 - Page 1 of 242 J unction bike path and sewer main that runs beneath it. The project is anticipated to begin in August 2019. 3.Town Manager Report 3.1.Vail Commons Resale Lottery Results 5 min. 4.Presentations / Discussion 4.1.Presentation of the 2018 Audited Financial Statements.20 min. Presenter(s): Kathleen Halloran, Finance Director and Michael J enkins, Mc Mahan and Associates Action Requested of Council: For information only. Background: I n 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 made available for public inspection at the municipal building. The 2018 audit was conducted by Mc Mahan and Associates, L L C. 5.Public Hearings 5.1.Ordinance No. 4, Series of 2019, Second Reading, an Ordinance Amending Section 12-7H-12, Density, Vail Town Code, and Section 14-8-1, Vail Town Code, to Remove the Dwelling Units per Acre Maximum W hile Maintaining the Existing Dimensional Standards I ncluding GRFA and Building Height in the Lionshead Mixed Use-1 Zone District. 20 Min Presenter(s): Chris Neubecker, Planning Manager, Community Development Action Requested of Council: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 4, Series of 2019, upon second reading. Background: The proposed change to the density maximum in Lionshead Mixed Use-1 zone district will encourage redevelopment of properties in the Lionshead area, as recommended in the Lionshead Redevelopment Master Plan. Staff Recommendation: The Community Development Department recommends approval of Ordinance No. 4, Series of 2019 on Second Reading. 5.2.Ordinance No. 9, Series of 2019, Second Reading, Prescribed Regulations Amendment - Separated Duplexes 5 min. Presenter(s): Erik Gates, Community Development Planner Action Requested of Council: The Vail Town Council is asked to approve, approve with modifications, or deny Ordinance No. 9, Series of 2019 Background: W ithin the TOV there are approximately 20 separated duplexes. Over time, adherence to the Unified Architectural and Landscape Design requirement has not been maintained on approximately 10 of them. This has resulted largely from prior Design Review Boards not enforcing this provision of the code and has been exacerbated by staff approvals. Because the Code, as written, requires that this criteria be met and does not allow for any alteration that would increase the discrepancy between the structures, an exterior alteration of any size would require that one or both of the duplexes significantly redevelop their property to come into compliance with the Code. This results in a financial and logistical constraint that can result in separated duplexes choosing to make no updates their June 4, 2019 - Page 2 of 242 architectural design. 6.Adjournment 6.1.Adjournment 7:05 pm (estimate) Meeting agendas and materials can be acc es s ed prior to meeting day on the Town of Vail webs ite www.vailgov.com. All town c ouncil meetings will be streamed live by High F ive Ac cess Media and available for public viewing as the meeting is happening. T he meeting videos are als o posted to High F ive Ac cess Media website the week following meeting day, www.highfivemedia.org. P leas e c all 970-479-2136 for additional information. S ign language interpretation is available upon reques t with 48 hour notification dial 711. June 4, 2019 - Page 3 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: May 7, 2019 Town Council Meeting Minutes AT TAC H ME N TS: Description May 7, 2019 Town Council Meeting Minutes June 4, 2019 - Page 4 of 242 Town Council Meeting Minutes of May 7, 2019 Page 1 Vail Town Council Meeting Minutes Tuesday, May 7, 2019 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Chapin. Members present: Jenn Bruno, Mayor Pro Tem Travis Coggin Kevin Foley Jen Mason Greg Moffet Absent: Dave Chapin, Mayor Kim Langmaid Patty McKenny, Assistant Town Manager Staff members present: Matt Mire, Town Attorney Tammy Nagel, Town Clerk 1. Citizen Participation Ann Esson, West Vail Resident, spoke to council regarding the Town Manager process and the previous manager, Greg Clifton. Essson stated she admired Clifton for his transparency on govt. issues such as the East Vail housing parcel and the effect on wildlife. Esson said it was imperative the new manager share Clifton's commitment to transparency and to listen to all voices in the community. 2. Introduction of new CML Executive Director 2.1. Kevin Bommer Colorado Municipal League Executive Director Introduction 5 min. Presenter(s): Jenn Bruno, Mayor Pro Tem Background: Kevin Bommer was appointed to be the Colorado Municipal League ("CML") Executive Director this past April. Bommer is responsible to CML's 21-member executive board for executing the policies and programs of the CML, supervising staff members, managing and coordinating activities and operations, recommending and developing organization policies and programs, and serving as a spokesperson for CML policies. Bommer also directs the CML’s advocacy program and oversees CML's strategic plan development and implementation. Prior to being appointed executive director, Bommer served as the CML’s deputy director and was a full-time lobbyist from 2000 to 2019. Council welcomed Bommer and reminded everyone he would be at the Grand View Room tomorrow morning (May 8) to talk about recently passed legislation. 3. Any action as a result of executive session June 4, 2019 - Page 5 of 242 Town Council Meeting Minutes of May 7, 2019 Page 2 4. Proclamations 4.1. Proclamation No. 6, Series 2019, May is Colorado Wildfire Awareness Month Each council member read Proclamation No. 6, 2019 into the record. Moffet made a motion to approve Proclamation No. 6, Series of2019; /Foley seconded the motion passed (5-0). Mark Novak, Fire Chief and Paul Cada, Wildland Program Administrator, spoke to council about the importance of fire preparedness and thanked them for their support of the proclamation. Cada stated citizens can call the Fire Department for free wildfire mitigation inspection of their property. 5. Consent Agenda 5.1. April 2, 2019 Town Council Meeting Minutes Moffet made a motion to approve the April 2, 2019 meeting minutes; Foley seconded the motion passed (5-0). 5.2. April 16, 2019 Town Council Meeting Minute Moffet made a motion to approve the April 16, 2019 meeting minutes; Coggin seconded the motion passed (4-0 *Bruno recused herself from the vote) 5.3. Resolution No. 19, Series of 2019, Resolution No. 19, Series of 2019, A Resolution Approving a Cooperative Intergovernmental Agreement for Use of the 800 MHZ System in the Eagle River Valley Background: The Eagle River Valley User Agencies previously entered into an Agreement for use of Eagle County's 800 MHz Wide Area Smartzone Trunked Radio Services dated on or around August 17, 2010, governing the use of the 800 MHz radio system in Eagle County. The User Agencies wish to supersede the Previous Agreement with the current Intergovernmental Agreement to provide for continuing access to the system by the User Agencies and to reallocate the decision-making responsibilities of the User Agencies for the system. Moffet made a motion to approve Resolution No. 19, series of 2019; Mason seconded the motion passed (5-0). 5.4. Resolution No. 20, Series of 2019, A Resolution Designating Bank Accounts for the Town of Vail with Patty Mckenny , Kathleen Halloran, Carlie Smith and Jacque Lovato as the Designated Signers of those Accounts Permitted by the Charter of the Town, Its Ordinances and the Statutes of the State of Colorado and Setting Forth Details in Regard Thereto Background: With the departure of the Town Manager, this resolution adds Patty McKenny, Interim Town Manager to the list of signers on the town's bank accounts for the continuation of business processes. June 4, 2019 - Page 6 of 242 Town Council Meeting Minutes of May 7, 2019 Page 3 Moffet made a motion to approve Resolution No. 20, Series of 2019; Foley seconded the motion passed (5-0). 5.5. Bridge Road Bridge Replacement Contract Award Background: Staff received 2 bids for the Bridge Road Bridge Replacement Project. The project replaces an existing 3 culvert structure with a single span bridge over Gore Creek. Moffet made a motion to award the Bridge Road bridge replacement contract to Kraemer North America, LLC in the amount not to exceed $1,640,665.00; Mason seconded the motion passed (5-0). 6. Presentation/Discussion 6.1. Vail Trail Head Use Task Force Report Presenter(s): Dwight Henninger, Police Chief and Aaron Mayville, US Forest District Ranger Action Requested of Council: Listen to presentation, give feedback and approve or deny funding in supplemental. Background: See attached memorandum Dwight Henninger, Police Chief, provided council with a Vail Trail Head Use Task Force update on possible plans for this summer and Vail Trails. Henninger reported the East Vail trailheads which included Booth, Pitkin, Bighorn, and Gore/Deluge, had seen significant growth in use over the last several years. Using trail counter data from Booth Creek trail, the Forest Service estimated a 156% increase between 2010 and 2018 which equated to about 2.6 times more people using the trail. Booth Creek trail saw over 31,000 hikers during the summer of 2018. These trailheads lead to the Congressionally-designated Eagles Nest Wilderness. The Task Force discussed and researched a number of potential efforts to address issues related to access, parking abuses, crowding, sanitation, trash, trail etiquette, off-leash dogs, social media, etc. Henninger stated there was not one solution that appropriately addressed those topics and also meet all the needs of stakeholders, including the Town, neighborhood residents, and local and federal agencies. Some recommendations from the Task Force for this summer included:  Development of a Trail Host volunteer program.  Portable sanitation facilities,  Improved parking and circulation management,  Dog waste education and other improvements to help address crowding on the trails. Henninger stated the first step was to begin an integrated planning effort working with stakeholders including the White River National Forest. The $30,000 funding would enable the Town to contract with the Department of Transportation’s Volpe Center to commence an overall plan for these highly popular trails and trailheads in East Vail. The Volpe Center would facilitate a stakeholder group, conduct stakeholder and public meetings, design and implement user surveys, collect and analyze transportation/survey data, research feasible transit options, investigate capacities and generate other agreed-upon documentation. Henninger provided a break down of the costs of all the recommendations equaling $48,000; which staff was June 4, 2019 - Page 7 of 242 Town Council Meeting Minutes of May 7, 2019 Page 4 requesting council add to the budget supplement that was being discussed later in tonight’s meeting. Aaron Mayville, U.S. Forest District Ranger, explained the partnership with the town to also include long-range management planning similar to what had been done for Hanging Lake to be facilitated by the Volpe Center. This is the first summer for these efforts and more than likely they will get tweaked throughout the season. Mason thanked everyone for their efforts in managing the trails and helping the neighborhoods the trails heads are located in. Moffet suggested implementing the same process as Hanging Lake immediately. Council asked about signage for no parking areas and ticketing parking violators. Bruno asked about messaging during the busy days of other trails for people to hike. Bruno also asked about permitting similar to Maroon Bells in Aspen. There was no public comment. Moffet made a motion to include the $48,000 in the second reading of the supplement; Foley seconded the motion passed (5-0). 7. Action Items 7.1. Ordinance No. 7, Series 2019, an ordinance making budget adjustments to the Town of Vail General Fund, Capital Projects Fund, Real Estate Transfer Tax Fund, Housing Fund, Marketing Fund, Heavy Equipment Fund, Dispatch Services Fund, and Timber Ridge Housing Fund. Presenter(s): Kathleen Halloran, Finance Director Action Requested of Council: Approve or approve with amendments Ordinance No. 7, Series 2019. Background: Please see attached memo. Staff Recommendation: Approve or approve with amendments Ordinance No. 7, Series 2019. Kathleen Halloran, Finance Director, provided council with a recap of the 2018 revenue growth compared to 2017:  9% increase in sales tax,  112% increase in construction use tax,  31% increase in parking sales,  21% increase in RETT, and  82% increase in construction permits/fees. Halloran briefly reviewed the adjustments to the general fund, capital projects fund, housing fund, real estate transfer tax fund, marketing fund, heavy equipment fund, dispatch services fund and Timber Ridge housing fund. Council requested a small presentation from Shoulder to Shoulder for the $50,000 contribution request for the 2019 Global Solutions Forum to be held in October. There was no public comment. Moffet moved to adopt Ordinance No. 7, Series of 2019 upon first reading; Foley seconded the motion passed (5-0). 7.2. Ordinance No. 8, Series of 2019 - An Ordinance Amending Title 12, Zoning Regulations, Vail Town Code, Pursuant to Section 12-3-7, Amendment, Amending the June 4, 2019 - Page 8 of 242 Town Council Meeting Minutes of May 7, 2019 Page 5 Definition of Flat Roof, Adding Definitions for Sloping Roof and Parapet, Creating Regulations for Parapet Height; and Setting Forth Details in Regard Thereto. 30 min. Presenter(s): Ashley Clark, Planner II Action Requested of Council: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 8, Series of 2019, upon first reading. Background: The Community Development Department is proposing to update the Vail Town Code to add definitions related to roof pitches and respective maximum allowed heights and to add language to regulate parapets. The legislative history for height allowances in Vail from the original adoption of the Zoning Regulations and Design Regulations to today shows that Vail has adjusted its codes to accommodate design trends and technology. Today, roof construction practices allow for a wide range of roof pitches. Proposals reviewed by staff often include many different roof pitches, with some being more flat or sloping relative to others. This text amendment seeks to update the existing code to provide a clear standard for fair and consistent review of projects in Vail. Staff Recommendation: On April 22, 2019 the Planning and Environmental Commission (PEC) forwarded a recommendation of approval to the Vail Town Council, of the proposed text amendment, subject to the findings noted in Section VIII of the staff memorandum to the PEC. Ashley Clark, Community Development Planner, explained the proposed amendments to Sections 12-2-2 and 14-10-4, pursuant to Section 12-3-7, Amendment, Vail Town Code, was to:  Allow for the addition of new definitions for sloping roof and parapet,  Update the existing definition of flat roof and  Add regulations for parapet height. Council had no questions. There was no public comment. Moffet made a motion to approve Ordinance No. 8, Series of 2019 upon first reading; Coggin seconded the motion passed (5-0). 7.3. Resolution No. 21, Series of 2019, a resolution adopting the 2019 Update the Public Works Master Plan, and setting forth details in regard thereto.(PEC19-0006) Presenter(s): Chris Neubecker, Planning Manager, Community Development Department Action Requested of Council: The Town Council is asked to approve Resolution No. 21, Series of 2019, to adopt the 2019 Update to the Public Works Master Plan. Background: The existing Public Works Master Plan was approved in 1994 and is now 25 years old. A new master plan is needed to guide future use and development of the Public Works site. The purpose of the 2019 Update to the Public Works Master Plan is to provide a summary of the immediate needs and the long term use of the Public Works site within the Town of Vail. The Plan will provide a roadmap to guide future development of the site, while helping the Town to understand the possible costs and impacts of future development, and allowing for flexibility in implementation of the Plan. Staff Recommendation: The Community Development Department recommends approval of Resolution No. 21, Series of 2019. June 4, 2019 - Page 9 of 242 Town Council Meeting Minutes of May 7, 2019 Page 6 Chris Neubecker, Community Development Planning Manager, presented an overview of the public works master plan, stating the purpose of the Plan was to provide a summary of the immediate needs and the long term use of the Public Works site. The Plan would provide a roadmap to guide future development and use of the site, while helping the Town to understand the possible costs and impacts of future development, and allowing for flexibility in implementation of the Plan. The main program elements of the Plan include: • Employee Housing • Public Works Administration • Transit • Fleet Maintenance • Streets & Parks • Facilities Maintenance • Solar Energy Systems • Snow Dump/Storage • Site Parking Neubecker explained the timeframe for this Master Plan was 20 years. This duration allowed for the Town to identify known needs and to plan for the future. There are six priorities of the Public Works Master Plan: 1. Streets and Parks building expansion 2. Housing opportunities which may be available at the site 3. Solar energy opportunities to help offset Town of Vail energy consumption 4. N. Frontage Road turn-lane and improvements to support future expansion 5. Snow Dump/Storage expansion 6. Site utility upgrades Neubecker stated the PEC made recommendations to the Plan at an April meeting to include Solar Panels and housing. Council had no questions. There was no Public Comment Moffet made a motion to approves Resolution No. 21, Series of 2019, a resolution adopting the 2019 Update to the Public Works Master Plan. This motion is based upon the Planning and Environmental Commission’s review and recommendation of approval of the proposed Plan, as amended over the course of the public hearing process and the finding that the applicant has demonstrated to the satisfaction of the Town Council that conditions have changed since the original adoption of the 1994 Public Works Facility Master Plan and that the requested additions, deletions, or changes to the Plan are in concert with the adopted development objectives, as outlined in Section VI of the staff memorandum to the Planning and Environmental Commission dated April 22, 2019.; Foley seconded the motion passed (5-0). 7.4. Resolution No. 22, Series of 2019, A Resolution of the Vail Town Council Stating Intent of the Town to Acquire Certain Property for the Protection of the Town's Stream Tract, and to Provide for the Unencumbered Use of Public Property Pursuant to C.R.S. §38-6-101, ET Seq. C.R.S. §31-25-201, Article XX, §1 Town of Vail Home Rule Charter Presenter(s): Matt Mire, Town Attorney Action Requested of Council: Approve, approve with amendments or deny Resolution No. 22, Series of 2019. June 4, 2019 - Page 10 of 242 Town Council Meeting Minutes of May 7, 2019 Page 7 Background: Delponte sued the Town after installing private landscaping and patio improvements on Town-owned property adjacent to Gore Creek. Delponte sought a declaratory judgment that a restrictive covenant permitted installation of his private improvements. The Town filed a counterclaim for trespass. In 2016, the Colorado Court of Appeals agreed with the Town, finding that the improvements illegally trespassed upon Town property as a matter of law and remanding the matter to the District Court to award damages for the trespass. Two years later, the district court held a hearing concerning damages. In the meantime, the plaintiff convinced his neighborhood to adopt a new restrictive covenant that purportedly allows private improvements on Town-owned property. At the damages hearing, despite evidence of actual damages provided by the Town, the district court awarded the Town only nominal damages of $1.00 for the 12 years of trespass on Town-owned property. The Town has again appealed the district court’s decision to the Colorado Court of Appeals, and the appeal is pending. To avoid another attempt by the neighborhood to take Town-owned property, the Town intends to condemn all existing and future restrictive covenants that purport to allow private uses on the Town-owned property. Under current case law, the value of the property interest to be condemned is zero. Matt Mire, Town Attorney, reviewed Resolution No. 22, Series of 2019 with council. Mire explained the new covenants allowed owners to build private use on town property and the condemnation would make it unlawful to use public land for private use. Mire reminded council this would assist with protecting the Gore Creek stream tract. There was no public comment. Moffet made a motion to approve Resolution No. 22, Series of 2019; Coggin seconded the motion passed (5-0). Moffet made a motion to appoint Kristen Bertuglia as the negotiator; Foley seconded the motion passed (5-0). 8. Public Hearings 8.1. Ordinance No. 6, Series of 2019, Second Reading, An Ordinance Granting a Franchise to Holy Cross Energy Presenter(s): Greg Hall, Public Works & Transportation Director Action Requested of Council: Table Ordinance No. 6, Series of 2019 to the May 21, 2019 Town Council meeting. Background: The Town of Vail and Holy Cross Energy have been partners in an Electric Utility Franchise Agreement since February 27, 1979. That agreement was renewed on May 4, 1999 to expire this May. The franchise fee is currently set at 3%, which is consistent with other municipalities with whom Holy Cross Energy has franchise agreements with. The proposed franchise agreement increases the franchise fee to 4%. The additional revenue generated from this increase will assist with undergrounding of overhead electric and other utility lines. Public notice requirements for franchise agreements have been met by Holy Cross. Staff Recommendation: Table Ordinance No. 6, Series of 2019 to the May 21, 2019 Town Council meeting. June 4, 2019 - Page 11 of 242 Town Council Meeting Minutes of May 7, 2019 Page 8 Moffet made a motion to table Ordinance No. 6, Series of2019 to the May 21, 2019 meeting; Foley seconded the motion passed (5-0). There being no further business to come before the council, Moffet moved to adjourn the meeting; Coggin seconded the motion which passed (5-0) and the meeting adjourned at 8:50 p.m. Respectfully Submitted, Attest: __________________________________ Jenn Bruno, Mayor Pro Tem ___________________________________ Tammy Nagel, Town Clerk June 4, 2019 - Page 12 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: May 21, 2019 Town Council Meeting Minutes AT TAC H ME N TS: Description May 21, 2019 Town Council Meeting Minutes June 4, 2019 - Page 13 of 242 Vail Town Council Meeting Minutes Tuesday, May 21, 2019 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Chapin. Members present: Dave Chapin, Mayor Jenn Bruno, Mayor Pro Tem Travis Coggin Kevin Foley Kim Langmaid Jen Mason Greg Moffet Staff members present: Patty McKenny, Assistant Town Manager Matt Mire, Town Attorney Tammy Nagel, Town Clerk 1. Citizen Participation Carol Johnson, West Vail resident, asked council to join other communities in adopting legislation to raise the age to purchase and use cigarettes and vaping devices from 18 to 21 years of age. Cynthia Myers, Vail resident, also spoke to council about raising the smoking age from 18 years to 21 years of age. Myers asked council to let the Vail voters decide by putting the question on the ballot. Tom Boyd, introduced himself to council as the new General Manager for the Ford Amphitheater. Additionally, Boyd stated he would continue to serve as director of PR for the Vail Valley Foundation. . Matt Scherr, Minturn resident, introduced himself to council as the newest Eagle County Commissioner. He was appointed after the seat was vacated by Jill Ryan. 2. Award Recognitions 2.1. Recognize recent Housing Colorado Eagle Award given to George Ruther, Vail Housing Director, and acknowledgement of the Vail Local Housing Authority for the Vail InDEED Deed-Restriction Purchase Program Presenter(s): Dave Chapin, Mayor Background: The Town Council would like to congratulate George Ruther and the Vail Local Housing Authority for the recent recognition by the Housing Colorado group who presented the Eagle Award to Vail's Housing Director Mr. Ruther as well as recognized the Vail InDEED program as one of five outstanding housing programs in the State of Colorado. Town Council Meeting Minutes of May 21, 2019 Page 1 June 4, 2019 - Page 14 of 242 Housing Colorado is an industry association dedicated to working with and acknowledging affordable housing in Colorado. The Eagle Award was established in 1990 and has come to represent one of the highest achievements for the Colorado housing community. This prestigious award celebrates the extraordinary accomplishments and outstanding leadership in housing and support services. The award honors individuals, agencies, projects, and programs that soar to new heights in their work to ensure safe, decent, affordable housing for all Coloradans. A total of four winners were chosen from nearly 30 project, program and individual nominations from across Colorado by an industry-diverse selection committee. The four Eagle Awards and one People’s Choice Award were presented at the 2019 Eagle Awards Ceremony on Thursday, May 9, 2019 at the Four Season Hotel in downtown Denver. 2.2. Colorado Grand Scholarship Award Recognition Presenter(s): Jenn Bruno, Mayor Pro Tem Background: The Colorado Grand has offered an annual scholarship program to students attending local schools in Eagle County. The 2019 award will be given to a senior student who attends one of the local High Schools. Ed O'Brien, representing Colorado Grand, will recognize the student and highlight the upcoming summer Colorado Grand program, an event that has been in Vail for over 30 years. Bruno introduced Ed O’Brien the Colorado Grand Colorado Grand Community Liaison and together they presented the $8500.00 scholarship to Battle Mountain High School student Alondra Hernandez. 2.3. Town of Vail Youth Award Recognition Presenter(s): Dave Chapin, Mayor and Scott O'Connell Background: The Town of Vail will recognize two local Vail students (and residents), for their academic accomplishments, extracurricular activities (athletic, civic, performing arts) and leadership at their respective high schools, Vail Mountain School & Battle Mountain High School. The Town has been a supporter of this program formerly administered and funded by the Vail Valley Exchange (no longer an active organization). Scott O’Connell, Vail Recreation District representative, presented both juniors in high school, Lexi Linafelter of Vail Mountain School and Owen Ruotolo of Battle Mountain High School, a $1000.00 college scholarship each. 3. Appointments for Authorities, Boards and Commissions 3.1. Vail Local Housing Authority Appointment Presenter(s): Dave Chapin, Mayor Action Requested of Council: Appoint one person to serve on the VLHA for a five-year term ending on May 31, 2024. Bruno made a motion to appoint James Wilkens to another five year term on the Vail Local Housing Authority; Moffet seconded the motion passed (7-0). Town Council Meeting Minutes of May 21, 2019 Page 2 June 4, 2019 - Page 15 of 242 3.2. Vail Local (Liquor) Licensing Authority Appointments Presenter(s): Dave Chapin, Mayor Action Requested of Council: Appoint three people to serve on VLLA for two-year term ending May 31, 2021. Bruno made motion to appoint Ross Cohen and Tony Herrera to two years terms on the Vail Local Housing Authority; and Luca Bruno reappointed to a one year term or until someone else submits a letter of interest; Moffet seconded the motion passed (7-0). Foley stated Bob McKeown was currently out of town, but thought he might be interested in serving on the VLLA board again. 4. Consent Agenda 4.1. Resolution No. 23, Series of 2019; A Resolution Pledging 100% Renewable Energy for Town of Vail Municipal Electricity Presenter(s): Kristen Bertuglia, Environmental Sustainability Manager, Greg Hall, Director of Public Works, Transportation and Parks and representatives from Holy Cross Energy Background: The Town of Vail's Environmental Sustainability Strategic Plan holds the town to a reduction of carbon emissions of 20% by 2020 below 2006 levels. Holy Cross Energy will present the PURE program, an energy offset program where members may purchase renewable energy for a premium. Staff Recommendation: Staff recommends the Vail Town Council approve Resolution No. 23, Series of 2019, and associated funding of $36,000 (estimated based on last 12 months kWh usage) for wind power in the supplemental budget, offsetting over 4.6 million kWh of municipal electricity use with renewable energy. Langmaid made a motion to approve Resolution No. 23, Series of 2019; Mason seconded the motion failed (4-3 Bruno, Moffet, Chapin and Foley against) Several council members expressed concerns about the proposal. Moffet would prefer to give the $36,000 as a last step and would prefer to see local renewables. Foley preferred 100% hydro power. Bruno didn’t think the offset should apply to town's sustainability goals. Langmaid wanted the town get out of using coal. Coggin stated he would support the resolution but would also like to see more action. Foley made a motion to approve an amended Resolution No. 23, Series of 2019 the purchase going to 100% hydro power and to not be used to offset the town’s 2020 sustainability goal; Coggin seconded the motion passed (6-1 Moffet opposed). 4.2. Resolution No. 24, Series of 2019, A Resolution Approving the Purchase of Lot 5 Bighorn 2nd Edition Known as 3785 Lupine Drive, Lot 5, Vail Colorado 81657 Town Council Meeting Minutes of May 21, 2019 Page 3 June 4, 2019 - Page 16 of 242 Moffet made a motion to approve Resolution No 24, Series of 2019 and to add recitals to the resolution stating the property would be open space with no trails or other improvements; Mason seconded the motion passed (7-0). 5. Town Manager Report 5.1. Red Sandstone Parking Structure Project Update Presenter(s): Greg Hall, Director of Public Works & Transportation Hall provided council an update on the repairs to the Red Sandstone parking structure stating the weather has caused some delays completing the repairs. 6. Presentation/Discussion 6.1. Civic Area Plan Discussion Presenter(s): Matt Gennett, Community Development Director Action Requested of Council: Staff asks Council to review the presentation and provide direction related to the content provided by the project team. Background: Since our last update to Council on April 2, 2019, the project team has launched Engagement Window 2 to gain feedback on the various design concepts for each of the five sites in the study area. Today’s presentation to Council focuses on the feedback we received from the public through surveys conducted on EngageVail.com, and input from various stakeholder groups we have met with during Engagement Window 2. The presentation also covers funding mechanisms available to the Town, rough estimates of cost, and market considerations relative to the types of uses contemplated within the Civic Area. Staff Recommendation: No recommendation is proposed from staff at this time. Gennett, Community Development Director, spoke to council regarding a trip the group took to Boulder to review their civic area updates and to get some ideas. Gennett reintroduced the team. Tom Boyd, civic area consultant, reviewed the project timeline and the focuses of the upcoming meetings. The goal of tonight’s meeting was to:  Provide an update on community engagement window 2;  Market Considerations;  Revenue Opportunities;  Order of Magnitude Estimate of Project Costs Boyd stated Engagement Window #2 had been successful. This engagement requested respondents to evaluate design concepts for the five sites in the study area. These concepts included a large community space at the charter bus lot; an upgrade, rebuild or expansion of Dobson Ice Arena; addition of a 2nd floor to the library; community space and housing at the Lionhead parking structure; additional parking; and a new municipal building. Engagement Window #2 showed the Vail Public Library was considered a high community asset and had support of several potential ideas but there was minimal support for a bridge connecting the library to Dobson Arena. Community feedback suggested strong support for doing significant improvements at Dobson Arena. There was also support for ground level uses Town Council Meeting Minutes of May 21, 2019 Page 4 June 4, 2019 - Page 17 of 242 on the south side of a potential expansion of the Lionshead parking structure and a civic development on the charter bus lot. Opinions were mixed regarding future uses of the municipal site. Andrew Knudtsen, Economic Planning Systems, presented an overview on the economic and market considerations. This included potential revenue opportunities to fund Civic Area improvements and high-level order of magnitude cost estimates for potential improvements. A Multi-Purpose Event space (20,000 sq. ft.) was viable due to sufficient market demand. This could be a town-owned space or a joint venture approach. Next steps included additional research on a joint venture scenario, testing an overall room capacity in the market and testing the market demand for additional event space. An additional Ice Rink/recreation Center though per industry standards there was no need for an additional ice-rink looking at profile of users, there may be a need. An emerging "Hockey School" might be the driver that could generate revenue for Vail Recreation District. Next steps included:  Working with Vail Recreation District to estimate O&M costs associated with an expanded facility;  Test financial model and evaluate capacity regarding capital costs for upgrade, rebuild and expansion; and  Understand ways to incorporate rec facilities as part of options. Performing Arts opportunity exists to go larger or smaller than the Vilar Center. Next steps included researching best ways to introduce a complementary venue and develop working assumptions for VRD to manage a venue for groups of 4,000+. Regarding civic needs and opportunities, Knudtsen suggested additional evaluation of space requirements and costs associated with addressing housing needs as well an untapped opportunity to incubate new businesses. Next Knudtsen presented the availability of public financing mechanisms. These included: • Urban Renewal Authority • Downtown Development Authority • Business Improvement District • General Improvement District • Special District • Public Improvement Fee • Dedicated Sales Tax- required voter approval The various public financing mechanisms could generate significant revenue potential. In reviewing preliminary cost estimated for the various scenarios, the estimated $160 million could be funded by the public financing mechanisms presented. Council wanted to know more about the level of community support for the scenarios presented given the costs and to see examples of multi-use facilities that have been built elsewhere. Public comment was called. Laurie Mullen, representing Friends of Dobson, spoke on the group’s behalf and advocated on the need for a second sheet of ice for continuing programing. Rick Sackbauer, wondered about the Vail experience in the civic plan. Kristen Shelder, Vail resident, stated the hockey program was growing and advocated for the need of more ice. Terra Lane, reminded everyone that the Eagle ice-rink was seasonal and they really did not have two full sheets year around Town Council Meeting Minutes of May 21, 2019 Page 5 June 4, 2019 - Page 18 of 242 A figure skating parent from Gypsum stated there was a real need for more ice in the valley. She wondered if the consulting group looked at other ski communities like Aspen and Breckenridge who have 2 sheets of ice. Kaitlin Murray, Bravo Vail, offered their expertise to multi-use spaces for concerts and performing arts. 7. Break (10 min.) 8. Action Items 8.1. Ordinance No. 9, Series of 2019, First Reading, Prescribed Regulations Amendment - Separated Duplexes Presenter(s): Erik Gates, Community Development Planner Action Requested of Council: The Vail Town Council is asked to approve, approve with modifications, or deny Ordinance No. 9, Series of 2019 Background: Within the TOV there are approximately 20 separated duplexes. Over time, adherence to the Unified Architectural and Landscape Design requirement has not been maintained on approximately 10 of them. This has resulted largely from prior Design Review Boards not enforcing this provision of the code and has been exacerbated by staff approvals. Because the Code, as written, requires that this criteria be met and does not allow for any alteration that would increase the discrepancy between the structures, an exterior alteration of any size would require that one or both of the duplexes significantly redevelop their property to come into compliance with the Code. This results in a financial and logistical constraint that can result in separated duplexes choosing to make no updates their architectural design. Erik Gates, Community Development Planner, provided a brief history for the reason for code changes. Additionally, Gates stated on April 22, 2019, the Planning and Environmental Commission (PEC) forwarded a recommendation for approval, with the conditions that Staff present the inventory of qualifying properties to the Design Review Board and that the Design Review Board had final approval of the inventory and any future additions to the inventory, to the Vail Town Council for the proposed amendment, subject to the findings noted in Section VIII of the staff memorandum sent to the PEC There was no public comment Moffet made a motion to approve on first reading Ordinance No. 9, Series of 2019, a Prescribed Regulation Amendment to amend Section 14-10-6: Residential Development, Vail Town Code, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes, pursuant to Section 12-3-7, Amendment, Vail Town Code; Coggin seconded the motion passed (7-0). 8.2. Permission to Proceed through the Development Review Process for use of Town of Vail owned property to construct a driveway and retaining walls, located at 4018 Willow Way. Presenter(s): Chris Neubecker, Planning Manager Town Council Meeting Minutes of May 21, 2019 Page 6 June 4, 2019 - Page 19 of 242 Action Requested of Council: The Town Council is asked to review a request to submit development review applications (Design Review Board and Planning and Environmental Commission) for use Town of Vail property for the construction of a driveway and retaining walls in order to access a 45-acre parcel of land which has no frontage on a public right-of-way. Background: The proposed driveway would facilitate access to, and development on, the 45- acre parcel of undeveloped land, which does not have frontage on a public right-of-way. If this applicant is unable to obtain access through Town property, they will need to seek access from a private property, or through other existing access easements. Staff Recommendation: The Community Development Department recommends that the Vail Town Council deny use of Town property. Chris Neubecker, Planning Manager, provided an overview of the permission to proceed through the property. Neubecker stated the applicant SMF East Vail LLC are requesting permission to construct a driveway and associated retaining walls, as well as utilities and drainage improvements, within a proposed easement on Town of Vail property at 4018 Willow Way (Bighorn Subdivision, Lot 10) in order to access and develop a 45-acre parcel with no street frontage. Neubecker stated that the Community Development Department was recommending that the Vail Town Council denied use of Town property for the following reasons:  The Town property at 4018 Willow Way was purchased to advance the Town’s open space program.  The 45-acre parcel is identified in the 2018 Open Lands Plan for either acquisition by the Town of Vail or working with the property owner on a conservation easement to eliminate development potential.  The 45-acre parcel is currently zoned Agricultural and Open Space (A); development of the site is currently limited to one (1) single family residential dwelling up to 2,000 square feet of GRFA.  The 45-acre parcel is identified on the Land Use Plan map as open space, which reflects the community’s desire for this land. Steven Finn, representing the applicant SMF East Vail LLC presented the development idea for the 45 acre parcel and the access through Lot 10. Finn questioned the zoning of the property as open space. There was no public comment Moffet made a motion to deny the permission to proceed through the Development Review Process; Bruno seconded the motion passed (5-2 Foley and Mason against). Most council agreed to uphold the 1980 council decision to keep the parcel open space and felt the applicant had another access option to the 45 acre parcel. Foley thought the applicant should be allowed to go through the process and would be voting against the motion. 9. Public Hearings 9.1. Ordinance No. 8, Series of 2019, Second Reading, Ordinance adopting Prescribed Regulations Amendment - Roof Pitches Town Council Meeting Minutes of May 21, 2019 Page 7 June 4, 2019 - Page 20 of 242 Presenter(s): Ashley Clark, Planner II Action Requested of Council: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 8, Series of 2019, upon second reading. Background: The Community Development Department is proposing to update the Vail Town Code to add definitions related to roof pitches and respective maximum allowed heights and to add language to regulate parapets. The legislative history for height allowances in Vail from the original adoption of the Zoning Regulations and Design Regulations to today shows that Vail has adjusted its codes to accommodate design trends and technology. Today, roof construction practices allow for a wide range of roof pitches. Proposals reviewed by staff often include many different roof pitches, with some being more flat or sloping relative to others. This text amendment seeks to update the existing code to provide a clear standard for fair and consistent review of projects in Vail. Staff Recommendation: The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 8, Series of 2019, upon second reading. Ashley Clark, Planner II, confirmed there had been no changes since first reading. Moffet made a motion to approve Ordinance No. 8, Series of 2019 on second reading; Mason seconded the motion passed (7-0). There was no public comment 9.2. Ordinance No. 6, Series of 2019, Second Reading, An Ordinance Granting 10 min. a Franchise to Holy Cross Energy Presenter(s): Greg Hall, Public Works & Transportation Director Action Requested of Council: Approve, approve with amendments or deny Ordinance No. 6, Series of 2019 upon second reading. Background: The Town of Vail and Holy Cross Energy have been partners in an Electric Utility Franchise Agreement since February 27, 1979. That agreement was renewed on May 4, 1999 to expire this May. The franchise fee is currently set at 3%, which is consistent with other municipalities with whom Holy Cross Energy has franchise agreements with. The proposed franchise agreement increases the franchise fee to 4%. The additional revenue generated from this increase will assist with undergrounding of overhead electric and other utility lines. Public notice requirements for franchise agreements have been met by Holy Cross. Staff Recommendation: Approve, approve with amendments or deny Ordinance No. 6, Series of 2019 upon second reading. Greg Hall, Public Works Director confirmed there were no changes since first reading. Moffet made a motion to approve Ordinance No. 6, Series of 2019 on second reading; Coggin seconded the motion passed (7-0). There was no public comment. Town Council Meeting Minutes of May 21, 2019 Page 8 June 4, 2019 - Page 21 of 242 9.3. Second reading of Ordinance No. 7, Series 2019, an Ordinance making budget adjustments to the Town of Vail General Fund, Capital Projects Fund, Housing Fund, Real Estate Transfer Tax Fund, Marketing Fund, Heavy Equipment Fund, Dispatch Services Fund and Timber Ridge Enterprise Fund Presenter(s): Carlie Smith, Financial Services Manager Action Requested of Council: Approve or approve with amendments Ordinance No. 7, Series 2019 Background: Please see attached memo Staff Recommendation: Approve or approve with amendments Ordinance No. 7, Series 2019 Bob Bandoni, executive director of Student's Shoulder to Shoulder, provided a brief presentation on the Global Solution Forum event on October 23-25, 2019. Bandoni requested $50,000 from council for this event. Council agreed to fund the $50,000 as a signature event in council contribution. Carlie Smith, Financial Services Manager, reviewed the changes from first reading on May 7th  More information about the mid-cycle funding application for $50,000 for the 2019 Global Solutions Forum in Vail  $58,000Trailhead Use Taskforce to strategically address trailhead over use in Vail.  $600,000 to purchase the Lupine open space parcel with Eagle County. Eagle County will reimburse the town $300,000 or 50% of the purchase price.  $200,000 contingency for the data center project. The contingency would potentially be used to address newly identified structural issues that required a shift in the data center location from the 2nd floor to the 1st floor of the East Vail fire station. Moffet made a motion to approve Ordinance No. 7, Series of 2019 on second reading with the addition of $50,000 for the Global Solution Forum event; and 918with the $57000 for the renewable energy; Bruno seconded the motion passed (7-0). There was no public comment. There being no further business to come before the council, Moffet moved to adjourn the meeting; Foley seconded the motion which passed (7-0) and the meeting adjourned at 9:50 p.m. Respectfully Submitted, Attest: __________________________________ Dave Chapin, Mayor ___________________________________ Tammy Nagel, Town Clerk Town Council Meeting Minutes of May 21, 2019 Page 9 June 4, 2019 - Page 22 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Holy Cross Energy Bridge Road A greement B AC K G RO UND: The Bridge Road Bridge Replacement project requires relocation of existing Holy Cross E nergy infrastructure from the existing bridge structure to the new bridge structure. Holy Cross E nergy requires an executed Trench, Conduit and Vault agreement for this work to be performed. AT TAC H ME N TS: Description memo T C V Agreement June 4, 2019 - Page 23 of 242 To: Town Council From: Public Works Date: 06/04/2019 Subject: Holy Cross Energy Bridge Road Agreement I. ITEM/TOPIC Holy Cross Energy Bridge Road Agreement II. ACTION REQUESTED OF COUNCIL Authorize the Mayor to enter into Trench, Conduit and Vault Agreement with Holy Cross Energy for work associated with the Bridge Road Bridge Replacement Project. III. BACKGROUND The Bridge Road Bridge Replacement Project requires relocation of existing Holy Cross Energy infrastructure from the existing bridge structure to the new bridge structure. Holy Cross Energy requires an executed Trench, Conduit an Vault agreement for this work to be performed. IV. STAFF RECOMMENDATION Authorize the Mayor to enter into a Trench, Conduit and Vault Agreement with Holy Cross Energy for work associated with the Bridge Road Bridge Replacement Project. June 4, 2019 - Page 24 of 242 TRENCH, CONDUIT, AND VAULT AGREEMENT This agreement is made and entered into this day of , 20 , between TOWN OF VAIL, COLORADO, a Colorado municipal corporation, whose mailing address is 75 S. Frontage Road, Vail, CO 81657, hereinafter called "Owner", and Holy Cross Energy, a Colorado corporation whose mailing address is P. O. Box 2150, Glenwood Springs, Colorado 81602, hereafter called "Holy Cross". WHEREAS, Holy Cross has been requested by Owner to provide underground electric facilities, hereinafter called “Facilities”, to serve a project known as Bighorn – Bridge Road Bridge Replacement, hereinafter called “Project”; and, WHEREAS, Owner is required to provide all excavation, conduit and vault installation, backfill, compaction and cleanup needed to construct said requested Facilities; and, WHEREAS, Owner owns real property described as follows: Tract A, Gore Creek Park, according to the Final Plat thereof, situated in Section 11, Township 5 South, Range 80 West of the 6th P.M., more particularly described at Reception No. 185772 in the office of the Eagle County Clerk and Recorder, Eagle, Colorado, hereinafter called “Property”, which Property is the real property where the Project is being developed; and, WHEREAS, installation of Facilities to serve the Project may require trenching or other excavation on certain real property adjacent to the Project described as follows: Town of Vail Public Right-Of-Way also known as Bridge Road, hereinafter called “Adjacent Land”. NOW, THEREFORE, Owner and Holy Cross agree as follows: 1. Owner shall provide all excavation, conduit and vault installation, backfill, compaction and cleanup necessary for installation of Facilities to serve the Project. Such excavation shall be located as shown on the construction plans approved by Holy Cross, and performed in accordance with Holy Cross Vault Installation Specifications, Construction Specifications and inspector requirements. Any deviation from the approved construction plans will not be made unless approved by Holy Cross in advance. All Facilities installed hereunder shall be inspected during construction by Holy Cross and shall meet all Holy Cross requirements prior to acceptance of such Facilities by Holy Cross. a. Prior to commencement of any work hereunder, Holy Cross shall furnish to Owner its Vault Installation Specifications and Construction Specifications and such specifications are made a part hereof by reference. b. All Facilities installed within the Property and Adjacent Land shall be within dedicated or conveyed and recorded utility easements. c. The top of all conduits installed hereunder shall be located a minimum of 48” below the final grade of the ground surface. d. A twelve -inch (12”) minimum separation will be maintained between conduits installed for the Facilities and all other new or existing underground utilities. Wherever possible, this separation will be horizontal. The Facilities conduit separation from plastic gas lines shall be greater than this minimum wherever practicable. e. Holy Cross will supply the necessary conduit and vaults for installation by the Owner upon completion of contractual arrangements. Owner assumes responsibility for all material lost or damaged after such material has been issued to and signed for by Owner or by an agent of Owner. Alternatively, Owner may provide its own conduit and vaults meeting Holy Cross specifications for use on the Project and convey such provided material to Holy Cross with an acceptable Bill of Sale. After installation by the Owner and acceptance by Holy Cross, Holy Cross shall continue as the owner of the conduit, vaults and related structures and facilities. f. If conduit and/or vault installation provided by Owner for the Project are found to be unusable or improperly constructed, irrespective of whether such discovery is made during or after installation, Owner will be responsible for correcting said problems at its expense as specified by Holy Cross and Owner shall reimburse Holy Cross for all additional costs resulting from conduit and/or vault installation being unusable or improperly constructed. 2. Despite the fact that Holy Cross reserves the right to specify acceptable work performed hereunder, Owner shall perform work hereunder as an independent contractor, including, but not limited to, the hiring and firing of its own employees, providing its own tools and equipment, payment of all wages, taxes, insurance, employee withholdings, and fees connected with its work on the Project. 3. Owner shall obtain all necessary digging permits and utility locations prior to excavation for work performed hereunder. Owner shall repair all damage caused during excavation promptly and at its expense. No excavation will be undertaken within five (5) feet of existing underground electric facilities except under the on site supervision of a Holy Cross employee. 4. Owner shall indemnify, save, and hold harmless Holy Cross, its employees and agents, against any and all loss, liability, claims, expense, suits, causes of action, or judgments for damages to property or injury or death to persons that may arise out of work performed hereunder, or because of a breach of any of the promises, covenants and agreements herein made by the Owner. Owner shall promptly defend Holy Cross whenever legal proceedings of any kind are brought against it arising out of work performed hereunder by the Owner and/or work performed at the direction of the Owner. In the event Owner W/O#16-22524:52-70:Bighorn – Bridge Road Bridge Replacement 7/3/18 16-22524 Salli JV Page 1 of 3Revised 12/18/15 June 4, 2019 - Page 25 of 242 shall fail to promptly defend Holy Cross, it shall be liable to Holy Cross, and shall reimburse it, for all costs, expenses and attorney fees incurred in defending any such legal proceeding. Owner agrees to satisfy, pay, and discharge any and all judgments and fines rendered against Holy Cross arising out of any such proceedings. Owner also agrees to promptly satisfy and pay any monetary settlements of disputes that arise hereunder, provided Owner has been given the opportunity to join in such settlement agreements. The above indemnification clause shall not apply to state and local governments or local service districts. In lieu thereof, whenever Owner is a government or district it shall procure and maintain in effect at least $1,000,000 of public liability insurance covering the acts, damages and expenses described in the above indemnification clause. Upon Holy Cross’ request, such an Owner shall furnish a Certificate of Insurance verifying the existence of such insurance coverage. 5. Owner shall repair, at its expense, any excavation settlement and damage to asphalt paving or other surface improvements caused by such settlement resulting from work performed hereunder within the Property and Adjacent Land for a period of two (2) years beginning on the date backfill and cleanup are completed. 6. Owner, at its expense, shall stop the growth of thistles and/or other noxious weeds in all areas disturbed by excavation performed hereunder for a period of two (2) years beginning on the date backfill and cleanup are completed. 7. In the event Owner shall not promptly complete all of the obligations hereinabove agreed to be performed by Owner, Holy Cross may give written notice by registered or certified mail demanding Owner to complete the work and obligations undertaken by Owner herein, and if such is not completed within 30 days after receipt of such notice by Owner, Holy Cross may complete the work and obligations hereof. If Holy Cross shall be required to complete the work, all costs of completion shall be chargeable to and collectible from Owner. 8. As set forth in paragraph 1 above, Owner covenants that the trench, and all Facilities within the trench installed hereunder shall be located within dedicated or conveyed and recorded utility easements and at the proper depth below finished grade. It shall be the obligation of Owner to properly locate and construct the Facilities within the easement. Should it ever be discovered that such Facilities have not been properly located within dedicated or conveyed and recorded utility easements, or at the proper depth, it shall be the obligation of Owner to provide new easements for the actual location of the Facilities, or to relocate the Facilities within the easement, all of which shall be at the sole cost and expense of Owner. 9. It shall be Owner’s responsibility to ensure that splice vaults, switchgear vaults and transformer vaults installed hereunder on the Property are accessible by Holy Cross boom trucks and other necessary equipment and personnel at all times. The use of such access by Holy Cross shall not require removal or alteration of any improvements, landscaping, or other obstructions. The ground surface grade shall not be altered within ten (10) feet of said splice, switchgear and transformer vaults, nor along the power line route between the vaults. The ground surface grade at said transformer and switchgear vaults shall be six (6) inches below the top of the pad. The ground surface grade at said splice vaults shall be even with the top of the pad. The manhole opening of said splice vaults shall be uncovered (excluding snow) and accessible at all times. Improvements, landscaping or any other objects placed in the vicinity of said transformers and switchgear shall be located so as not to hinder complete opening of the equipment doors. The ground surface within ten (10) feet of said transformer and switchgear doors shall be flat, level and free of improvements, landscaping, and other obstructions. Improvements, landscaping and other objects will be kept a minimum of four (4) feet from non- opening sides and backs of said transformers and switchgear. Owner hereby agrees to maintain the requirements of this paragraph and further agrees to correct any violations that may occur as soon as notified by Holy Cross. Said corrections will be made at the sole cost and expense of Owner. 10. All Holy Cross meter locations must be approved in advance. Notwithstanding such advance approval, it shall be the Owner’s responsibility to maintain acceptable access, as determined solely by Holy Cross, to all Holy Cross meters at all times. At any time in the future, should access to any Holy Cross meters be determined by Holy Cross to be unacceptable, then it shall be the Owner’s responsibility, at the Owner’s sole cost, to correct the access and make it acceptable, as determined solely by Holy Cross. 11. Owner covenants that it is the owner of the above described Property and that said Property is free and clear of encumbrances and liens of any character, except those held by the following: All those of Record. The promises, agreements and representations made by Owner herein shall be covenants that run with the Property and shall be binding upon the successors in interest, and assigns, of the Property. W/O#16-22524:52-70:Bighorn – Bridge Road Bridge Replacement 7/3/18 16-22524 Salli JV Page 2 of 3Revised 12/18/15 June 4, 2019 - Page 26 of 242 The individuals signing this Trench, Conduit and Vault Agreement hereby represent that they have full power and authority to sign, execute, and deliver this instrument. Holy Cross Energy, a Colorado corporation TOWN OF VAIL, COLORADO, a Colorado municipal corporation By: By: David Bleakley – Vice President, Engineering Mayor STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by as Mayor of TOWN OF VAIL, COLORADO, a Colorado municipal corporation. WITNESS my hand and official seal. My commission expires: Notary Public Address: STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by David Bleakley – Vice President, Engineering, Holy Cross Energy, a Colorado corporation. WITNESS my hand and official seal. My commission expires: Notary Public Address: W/O#16-22524:52-70:Bighorn – Bridge Road Bridge Replacement 7/3/18 16-22524 Salli JV Page 3 of 3Revised 12/18/15 Trench, Conduit and Vault Agreement Holy Cross Energy June 4, 2019 - Page 27 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: L etter of S upport for Mountain Travel Symposium AT TAC H ME N TS: Description Letter of Suppert June 4, 2019 - Page 28 of 242 June 4, 2019 Ms. Lori Walton Program Director Mountain Travel Symposium C/o Northstar Travel Group 100 Lighting Way, 2nd Floor Secaucus, NJ 07094 This letter shall confirm the Town of Vail’s support for the 2021 Mountain Travel Symposium in Vail with funding in the amount of $125,000. This funding is subject to annual appropriation by the Vail Town Council. The Town of Vail recognizes that the Mountain Travel Symposium has served as the platform for mountain resort businesses to meet each spring for business meetings and continuing education. The conference will be held from Sunday, April 11 – Sunday, April 17, 2021. Marriott Mountain Resort will serve as the host hotel, and meetings will also be held at Dobson Ice Arena and on Vail Mountain. Conference organizers expect 1,000 attendees representing more than 2,000 room nights plus ancillary spending in the Town of Vail. The Town of Vail recognizes the role of this important mountain resort industry conference and hopes to remain one of the host communities in future. Sincerely, Town of Vail Patty McKenny Interim Town Manager Cc: Kathleen Halloran, Finance Director Mia Vlaar, Economic Development Director 75 South Frontage Road West Vail CO 81657 Phone 970.479.2106 www.vailgov.com June 4, 2019 - Page 29 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Resolution No. 25, S eries of 2019 A Resolution approving an I ntergovernmental A greement between the Town of Vail and Eagle River Water and S anitation District for the Gore Valley Trail at Dowd J unction Repair Project B AC K G RO UND: The town and E RW S D entered into an I G A in 2015 for the design of streambank stabilization along Gore Creek in Dowd J unction. The design project has now moved into the construction phase. A new I G A for construction of the streambank stabilization now needs to be entered into, in order to implement the project. AT TAC H ME N TS: Description Staff Memorandum IG A Resolution 25 June 4, 2019 - Page 30 of 242 To: Vail Town Council From: Public Works Department Date: June 4, 2019 Subject: Resolution No. 25 Series 2019; IGA with ERWSD for Dowd Junction Streambank Stabilization Project I. SUMMARY The Town and ERWSD have been working cooperatively under an existing IGA for the design of streambank stabilization improvements along Gore Creek within Dowd Junction. The purpose of the project is to stabilize the existing retaining wall that supports both the Gore Valley Trail and ERWSD’s sanitary sewer main. The Town and ERWSD are now ready to construct the designed improvements. In order complete the construction, the Town and ERWSD need to enter into a subsequent construction IGA to memorialize the 50/50 cost share agreement. The IGA will identify the roles and responsibilities of each entity as well as the construction costs. The total anticipated cost of the construction project is ~$610,000, including construction, inspection, and emergency bypass pump system. II. RECOMMENDATION Town staff recommends that Council approves Resolution No. 26 Series 2019 and authorizes the Town Manager to enter into an IGA with ERWSD, in a form approved by the town attorney. June 4, 2019 - Page 31 of 242 {00686866.DOCX / 2 } INTERGOVERNMENTAL AGREEMENT FOR GORE VALLEY TRAIL AT DOWD JUNCTION REPAIR PROJECT THIS AGREEMENT is made and entered into this ______ day of ____________ 2019, by the TOWN OF VAIL, a political subdivision of the State of Colorado (“Town”), and EAGLE RIVER WATER AND SANITATION DISTRICT, a quasi- municipal corporation and political subdivision of the State of Colorado, (“District”). Collectively these entities are also referred to as the “Parties”. RECITALS WHEREAS, the Town of Vail is a Colorado municipality organized and operated pursuant to its home rule charter and Colorado law; and WHEREAS, Eagle River Water and Sanitation District is a water and sewer District organized and existing under the Colorado Special District Act; and WHEREAS, the District is empowered to provide water and sewer service to its customers and constituents within and without its boundaries, within Eagle County, Colorado, on such terms and conditions as the District may decide; and WHEREAS, Section 18(2)(a) and (b), Article XIV of the Colorado Constitution, Section 29-1-203, C.R.S., and Section 32-1-1001, C.R.S., provide for the ability of the Parties to enter into contracts and agreements with one another to provide intergovernmental services and facilities, when so authorized by their governing bodies; and WHEREAS, the Constitution and statutes of the State of Colorado permit and encourage agreements between political subdivisions of the State, in order that the inhabitants of such political subdivisions may thereby secure high quality governmental services; and WHEREAS, it is recognized by the Parties, that the public health, safety and welfare of their inhabitants is best served by providing high quality water and sewer and services; and WHEREAS, the Town wishes protect its infrastructure (Gore Valley Trail); and WHEREAS, the District wishes to protect its infrastructure (Sanitary Sewer Main); and June 4, 2019 - Page 32 of 242 2 WHEREAS, the Parties entered into a certain Intergovernmental Agreement for Gore Valley Trail at Dowd Junction for the sharing of design costs for the same Project, dated October 5, 2015; and WHEREAS, the Parties wish to combine their efforts in construction of the Project to achieve cost sharing and cost savings benefits, minimize duplication of efforts to construct a sound engineering solution to protect the parties’ infrastructure; and WHEREAS, each of the Parties hereto desires to work together to authorize and accomplish the Construction of the Project; and WHEREAS, each of the Parties hereto has determined it to be in the best interests of their respective taxpayers, residents, property owners, and constituents to enter into this Agreement. NOW, THEREFORE, in consideration of the mutual performance of the covenants, agreements, and stipulations contained herein, and for other good and valuable consideration, the Parties hereto agree as follows: 1. Cooperation. The Parties agree to cooperate in the planning, design, construction, inspection, cost and expense sharing, administration and warrantee phases of the Project referenced in this Agreement and to cooperate and facilitate the combined efforts including, but not limited to the execution of any additional agreements, easements, and rights-of-way necessary to implement the purposes of this Agreement. 2. Project Management: The Town will provide a construction management representative (“Town Construction Manager”) to coordinate the construction work, provide clarifications to the Contractor and review and approve proposed field changes, cost changes and time changes in a timely manner. The District will provide a construction management representative (“District Construction Manager”) to coordinate execution of the District’s portion of the Project with the Town Construction Manager as required herein. With respect to communications with Project Contractor, suppliers and consultants, the District Construction Manager shall not have authority to bind, or otherwise affect the obligations of, the Town. 3. Construction Contract. The Town administered a competitive bid process for the construction of this Project under the title “Gore Valley Streambank and Streambed Stabilization”. The bid documents and expected construction contract documents included items designed for and approved by the District. Whinnery Construction, Inc. (“Contractor”) was the lowest responsive, responsible bidder, and the Town has entered into a contract with Contractor for the Project. A copy of Contractor’s bid tabulation June 4, 2019 - Page 33 of 242 3 dated May 19, 2019 is included as Attachment A hereto. The Town will coordinate and supervise the Project, and will be the Owner as defined in the construction contract. The Town will coordinate the construction work, provide clarifications to the Contractor, and work with the Parties regarding any change orders or modifications to the construction contract. No work for the District outside of the construction contract will be commenced without approval by the District Construction Manager. 4. Project Costs. The Town and the District have selected Whinnery Construction Inc. to perform the construction services, S2O to perform construction inspection services, and to have the District provide an emergency bypass pump system, all defined as Project Costs. A copy of above mentioned costs area attached as Attachment A. The Town agrees to pay 50% of the Project Costs and the District agrees to pay 50% of the Projects Costs. 5. Cost Sharing. The Town agrees to pay all costs to the Contractor for the Project. The Town will invoice the District on a monthly basis for the District’s portion of the work based on work accomplished per the Contractor’s invoices and the value of the work listed in Attachment A. The District will reimburse the Town for the invoiced work within 30 days. The District represents that it has appropriated sufficient funds to pay in full its obligations hereunder. 6. Change Orders. Any change orders that arise during construction related to the Project will be negotiated between the Town, the District and the Contractor. Change order work will be completed by the Contractor at contracted unit costs, lump sum costs agreed to in advance, on a cost-plus basis or as otherwise set forth in the construction contract. Neither the Town nor its Contractor will commence any work outside of the contracted items for which it expects reimbursement from the District without the prior approval of the District’s Construction Manager. 7. Project Meetings. The Town will make a good faith effort to invite a representative of the District to meetings concerning the Project, and otherwise provide open communications throughout the Project. 8. Warranties. For any work that the District determines does not conform to the Project specifications set forth therein, or needs to be completed under warranty conditions, the District shall notify the Town and the Town will notify the Contractor under the terms of the Town’s agreement with the Contractor. The Town will obtain requisite warranties of at least a TWO- June 4, 2019 - Page 34 of 242 4 YEAR period from Contractor for workmanship and/or materials for facilities, infrastructure, and appurtenances constructed for the Project. 9. Enforcement. The Parties agree that this Agreement may be enforced in law or in equity for specific performance, injunctive, or other appropriate relief, including damages, as may be available according to the laws and statutes of the State of Colorado. It is specifically understood that by executing this Agreement each Party commits itself to perform pursuant to the terms contained herein, and that any breach hereof which results in any recoverable damages shall not cause the termination of any obligations created by this Agreement unless such termination is declared by the Party not in breach hereof. 10. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Colorado. 11. Venue. Venue for the trial of any action arising out of any dispute hereunder shall be in the District Court for Eagle County, State of Colorado, pursuant to the appropriate rules of civil procedures. 12. Captions. The headings and sections and paragraphs are included only for convenience and reference. If any conflict between any heading and the text of this Agreement exists, the text shall control. 13. Binding Agreement upon Successors and Assigns. This Agreement and the rights and obligations created hereby shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. 14. Interested Persons. Nothing herein expressed or implied is intended or should be construed to confer or give to any person or corporation or governmental entity other than the Town and the District, any right, remedy or claim under or by reason hereof or by reason of any covenant or condition herein contained, nor limit in any way the powers and responsibilities of the Town, the District, or any other entity not a party hereto. 15. Notices. All notices, requests, demands, consents and other communications hereunder shall be transmitted in writing and shall be deemed to have been duly given when hand-delivered or sent by certified, United States mail, postage prepaid, with return receipt requested, addressed to the parties as follows: June 4, 2019 - Page 35 of 242 5 Patty McKenny, Town Manager Town of Vail 75 South Frontage Road Vail, Colorado 81657 With a Copy to: Matt Mire, Town Attorney Town of Vail 75 South Frontage Road Vail, Colorado 81657 Eagle River Water and Sanitation District Linn Brooks, General Manager 846 Forest Road Vail, Colorado 81657 With a Copy to: James P. Collins, Esq. Collins Cockrel & Cole 390 Union Boulevard, Suite 400 Denver, Colorado 80228-1556 Either party may change the address at which it receives written notice, by notifying the other party in writing in the manner provided herein. 16. Severability. If any portion of this Agreement is held invalid or unenforceable for any reason by a court of competent jurisdiction as to either Party or as to both Parties, such portion shall be deemed severable and its invalidity or its unenforceability shall not affect the remaining provisions; such remaining provisions shall be fully severable and this Agreement shall be construed and enforced as if such invalid provisions had never been inserted into this Agreement. 17. Waiver. The waiver of any breach of any of the provisions of this Agreement, by any party, shall not constitute a continuing waiver of any subsequent breach by that party, either of the same, or of another provision of this Agreement. June 4, 2019 - Page 36 of 242 6 18. Amendment. This Agreement may be amended, modified, changed, or terminated in whole or in part only by written agreement duly authorized and executed by the Parties hereto. 19. Duplicate Originals. This Agreement may be executed in counterparts, each of which shall be an original, but all of which together, shall constitute one and the same agreement. 20. Separate Entity Status. In no event shall either party, its employees or its representatives, be considered or authorized to act as employees or agents of the other party. 21. Indemnification. Each party, to the extent permitted by law and subject to all of the immunities, defenses and protections afforded to that party by the Colorado Governmental Immunity Act, shall indemnify and hold harmless, the other party, its officers, directors, employees and agents from and against any claims including attorneys fees, arising out of the negligence of the officers, employees or agents of the indemnifying party and rising out of the performance of services under this Agreement. 22. Force Majeure. No party shall be liable for any failure to perform as required by this Agreement to the extent such failure to perform is caused by any reason beyond the control of that party or by reason of any of the following occurrences, whether or not caused by such party: strikes, labor disturbances or labor disputes of any character, accidents, riots, civil disorders or commotions, war, acts of aggression, floods, earthquakes, acts of God, explosion or similar occurrences; provided, such party shall exercise its best efforts to provide the best possible alternative performance and to prevent the foregoing occurrence from obstructing full performance. Such occurrences shall not terminate this Agreement and shall not affect this Agreement except as provided in this Section. 23. Entire Agreement of the Parties. This Agreement represents the full and complete understanding of Parties, and supersedes any prior agreements, discussions, negotiations, representations or understandings of Parties with respect to the subject matter contained herein. June 4, 2019 - Page 37 of 242 7 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be effective as of the date and year first above written. EAGLE RIVER WATER AND SANITATION DISTRICT By: Linn Brooks, General Manager Attest: Leslie Isom, Administration Manager TOWN OF VAIL By: Patty McKenny, Town Manager Attest: Tammy Nagel, Town Clerk APPROVED AS TO FORM Matt Mire, Town Attorney June 4, 2019 - Page 38 of 242 ATTACHMENT A (CONTRACT DOCUMENTS AND BID SCHEDULES) June 4, 2019 - Page 39 of 242 June 4, 2019 - Page 40 of 242 June 4, 2019 - Page 41 of 242 June 4, 2019 - Page 42 of 242 318 McConnell Dr. Lyons, CO, 80540 303.819.3985 May 23, 2019 Mr. Tom Kassmel The Town of Vail 75 South Frontage Road Vail, CO 81657 Change Order No. 5 – Design Drawing Revision and Construction Oversight Gore Valley Trail at Dowd Junction Repair Project This confirms Change Order No. 5 between The Town of Vail (“Client”) and S2o Design and Engineering (“S2o”) for additional budget to incorporate design changes into the construction drawings and update permitting submittals. Also included is construction oversight. Purpose This change order is to update changes to the design requested by the Client and will entail updating the design drawings, updating floodplain model and re-packaging permitting submittals. Additionally, this changer order serves to establish construction oversight hours for the construction of the proposed design. Scope of Work Revise and produce stamped construction drawings that reflect the removal of grade control structures one and two and the addition of a rock vane in place of structure 2. The updated design drawings will be included in the final permit submittals. The floodplain model will be updated to reflect the design changes described above. Construction oversight will consist of Engineer being present onsite to witness and field fit proposed design based on site conditions. The engineer will keep a written log of progress and issues as they arise. Additional Compensation S2o is requesting a change order for an additional fee of $37,161.00.* Assumptions  8 Weeks for Construction Oversight  Weeks 1 & 2 will have 8 hours a day for 4 days a week plus expenses  Weeks 3 thru 6 will have 6 hours a day for 3 days a week plus expenses  Weeks 7 and 8 will have 4 hours a day for 2 days a week plus expenses June 4, 2019 - Page 43 of 242 318 McConnell Dr. Lyons, CO, 80540 303.819.3985 Revised Budget Table 1: Construction Oversight Hours Table 2: Summary of Change Order 5 Week # Employee Hourly Rate Engineering Hours Traveling Rate Traveling Hours # of Hotel Stays Pre Bid Meeting Kurt Smithgall 125.00$ 2 62.50$ 5 0 Staking Meeting Kurt Smithgall 125.00$ 2.5 62.50$ 5 0 8/19/2019 Kurt Smithgall 125.00$ 32 62.50$ 5 3 8/26/2019 Kurt Smithgall 125.00$ 32 62.50$ 5 3 9/2/2019 Kurt Smithgall 125.00$ 18 62.50$ 5 2 9/9/2019 Kurt Smithgall 125.00$ 18 62.50$ 5 2 9/16/2019 Kurt Smithgall 125.00$ 18 62.50$ 5 2 9/23/2019 Kurt Smithgall 125.00$ 18 62.50$ 5 2 9/30/2019 Kurt Smithgall 125.00$ 12 62.50$ 5 1 10/7/2019 Kurt Smithgall 125.00$ 12 62.50$ 5 1 Subtotal Kurt Smithgall $125.00 164.5 $62.50 50 16 Trip 1 Scott Shipley 220.00$ 4 110.00$ 5 0 Trip 2 Scott Shipley 220.00$ 2 110.00$ 5 0 Trip 3 Scott Shipley 220.00$ 2 110.00$ 5 0 Subtotal Scott Shipley 220.00$ 8 $110.00 15 0 Description Estimated Fee/Cost Update Construction Drawings and Permit Submittals Additional Construction Oversight Estimated Reimbursable Expenses Total for Change Order No. 5 Original Authorized Budget (approved 9/30/2015) Change Order No. 1 (approved 8/4/2017) Change Order No. 2 (approved 8/4/2017) Change Order No. 3 (approved 10/17/2017) Change Order No. 4 (approved 8/16/2018) Change Order No. 5 (Proposed Herein) Total Revised Budget 167,691.00$ 61,250.00$ 16,000.00$ 14,500.00$ 1,200.00$ 37,580.00$ 37,161.00$ Change Order No. 5 5,500.00$ 27,097.50$ 4,563.50$ 37,161.00$ June 4, 2019 - Page 44 of 242 June 4, 2019 - Page 45 of 242 June 4, 2019 - Page 46 of 242 June 4, 2019 - Page 47 of 242 June 4, 2019 - Page 48 of 242 June 4, 2019 - Page 49 of 242 June 4, 2019 - Page 50 of 242 June 4, 2019 - Page 51 of 242 June 4, 2019 - Page 52 of 242 Page 1 RESOLUTION NO. 25 SERIES OF 2019 A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF VAIL AND EAGLE RIVER WATER AND SANITATION DISTRICT FOR THE GORE VALLEY TRAIL AT DOWD JUNCTION REPAIR PROJECT WHEREAS, the Town and Eagle River Water and Sanitation District (the “ERWSD”) wish to cooperate on a repair project for the Gore Valley Trail at Dowd Junction (the “Project”); W HEREAS, the Town wishes protect its infrastructure (Gore Valley Trail), and the District wishes to protect its infrastructure (Sanitary Sewer Main); WHEREAS, the Parties entered into a certain Intergovernmental Agreement for Gore Valley Trail at Dowd Junction for the sharing of design costs for the same Project, dated October 5, 2015; WHEREAS, the Parties wish to combine their efforts in construction of the Project to achieve cost sharing and cost savings benefits, minimize duplication of efforts to construct a sound engineering solution to protect the parties’ infrastructure; WHEREAS, each of the Parties hereto desires to work together to authorize and accomplish the construction of the Project; WHEREAS, each of the Parties hereto has determined it to be in the best interests of their respective taxpayers, residents, property owners, and constituents to enter into an agreement (the “IGA”) to construct the project; and WHEREAS, the Council’s approval of this Resolution is required to enter into the IGA. NOW, THEREFORE, BE IT RESOLVED BY TOWN COUNCIL FOR THE TOWN OF VAIL, STATE OF COLORADO: Section 1. The Council hereby approves the IGA and authorizes the Town Manager to enter into the IGA 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. TOWN OF VAIL ATTEST: ______________________________ By: _____________________________ Tammy Nagel, Town Clerk Dave Chapin, Mayor June 4, 2019 - Page 53 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Dowd J unction S treambank Stabilization Contract Award to W hinnery Construction in an amount not to exceed $542,320. B AC K G RO UND: The town and E RW S D have publically bid a joint Dowd J unction streambank stabilization project in order to protect the Dowd J unction bike path and sewer main that runs beneath it. T he project is anticipated to begin in August 2019. AT TAC H ME N TS: Description Staff Memo June 4, 2019 - Page 54 of 242 To: Vail Town Council From: Public Works Department Date: June 4, 2019 Subject: Dowd Junction Streambank Stabilization Project Contract Award I. SUMMARY The Town of Vail has recently publically bid the Dowd Junction Streambank Stabilization Project in a joint effort with ERWSD. The design and the construction of the project will be cost shared 50/50 between the Town and ERWSD. The purpose of the project is to stabilize the existing retaining wall that supports both the Gore Valley Trail and ERWSD’s sanitary sewer main. The Town received one bid: Whinnery Construction, Inc. $542,320.00 Whinnery Construction’s bid is within the engineer’s estimate, and they have a substantial amount of experience working in river corridors completing stabilization projects. The project is schedule to begin in August and be complete by October. II. RECOMMENDATION Town staff recommends that Council Authorize the Town Manager to enter into a construction contract, in a form approved by the town attorney, with Whinnery Construction Inc. in the amount not to exceed $542,320.00. June 4, 2019 - Page 55 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Vail Commons Resale L ottery Results AT TAC H ME N TS: Description Vail Commons Resale Lottery Results June 4, 2019 - Page 56 of 242 To: Vail Town Council From: George Ruther, Housing Director Lynne Campbell, Housing Coordinator Date: June 4, 2019 Subject: Vail Commons Resale Lottery Results 1. SUMMARY The purpose of this memorandum is to provide a summary of the Vail Commons resale lottery participation and results. 2. BACKGROUND On Wednesday, May 29, 2019, the Town of Vail Housing Department, in collaboration with the Vail Local Housing Authority and The Valley Home Store, hosted a resale lottery for a deed- restricted home located within the Vail Commons development. The Town of Vail Housing Department received a total of 31 completed applications from persons hopeful of being selected to have the first opportunity to negotiate the purchase of the Vail Commons home. Of the 31 total applications, 16 were from first time resale lottery participants. The Vail Town Council, with recommendations from the Vail Local Housing Authority, recently amended the resale lottery process. The objectives of the amendments were to establish a true lottery selection process, to increase lottery participation, and ensure an opportunity for all qualified participants a chance of being selected. The amended process maintains a preference system granting a greater chance of being selected to participants with employment and residency longevity in the Town of Vail. Lottery participants can receive up to 5 tickets depending upon there employment and residency longevity. The average number of tickets per participant was 3.58. Lottery participants were not required to be present to be selected, however, more than 20 participants attended the resale lottery drawing in hopes of being selected first. 3. NEXT STEPS The first person drawn in the resale lottery was Mr. Chris Desseauve. Mr. Desseauve has up to three business days to negotiate and execute an agreement to the purchase the deed-restricted home. The maximum resale price of the home is $191,820. If for any reason he is unable to execute the agreement within the time period allotted, the next person on the lottery draw order list, Ms. Laura Lilley, will be granted an opportunity to negotiate and execute an agreement, and so on, until the home is under contract and the transaction is closed. June 4, 2019 - Page 57 of 242 Town of Vail Page 2 June 4, 2019 - Page 58 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Presentation of the 2018 A udited F inancial Statements. P RE S E NT E R(S ): K athleen Halloran, F inance Director and Michael J enkins, Mc Mahan and A ssociates AC T IO N RE Q UE S T E D O F C O UNC I L: F or information only. B AC K G RO UND: I n accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. T he audit shall be conducted by certified public accountants and made available for public inspection at the municipal building. T he 2018 audit was conducted by Mc Mahan and A ssociates, L L C. AT TAC H ME N TS: Description Audit report 2018 Audited Financial Statements June 4, 2019 - Page 59 of 242 2018 FINANCIAL STATEMENTS & AUDIT REPORTFINANCE | June 4, 2019June 4, 2019 - Page 60 of 242 PRESENTERSKathleen Halloran, C.P.A. Finance DirectorMichael N. Jenkins, C.A., C.P.A. Partner, McMahan & Associates, LLCTown of Vail   |   Finance   |   6/4/2019June 4, 2019 - Page 61 of 242 Town of Vail   |   Finance   |   6/4/20192018 FINANCIAL STATEMENTS | Government Wide StatementsProvide a broad overview similar to a private sector business, including capital assets and long-term debt on a full accrual basisSTATEMENT OF NET POSITIONAssets exceed liabilities by $299.8M$194.9M net investment in capital assets$3.0M TABOR reserves; $1.1M restricted; $100.8M unrestrictedSTATEMENT OF ACTIVITIES$27.2M increase in net position$91.1M revenue; $27.6 program specific and $63.5M general revenue$63.9M expensesJune 4, 2019 - Page 62 of 242 Town of Vail   |   Finance   |   6/4/20192018 FINANCIAL STATEMENTS | Fund StatementsRecord financial transactions for specific activities or governmental functions; focus on near-term inflows and outflows and spendable balancesGOVERNMENTAL FUNDSGeneral FundCapital Projects FundReal Estate Transfer Tax Fund Marketing FundVail Local Marketing DistrictVail Reinvestment AuthorityPROPRIETARY FUNDSInternal Services –Heavy Equipment FundHealth Insurance FundEnterprise Funds –Dispatch Services FundTimber Ridge FundJune 4, 2019 - Page 63 of 242 Town of Vail   |   Finance   |   6/4/20192018 FINANCIAL STATEMENTS | Fund StatementsFinal Budget2018ActualBetter (Worse)%Revenue $40.8M $43.0M $2.2M 5.3%Expenditures (41.3)M (38.4)M 2.9 M7.4%Net Change $(0.5)M $4.6M $5.1M N/ARevenue –Increase mainly due to parking ($1.3M) and construction activity ($250K)Expenditures –Savings in general operations $2.5M; salaries due to vacancies $1.1M; healthcare/benefit savings of $250K; Fund Balance ‐$33.8 million compared with target $13.0 million or 30% of revenueGeneral Fund Favorable to Budget by $5.1MJune 4, 2019 - Page 64 of 242 Town of Vail   |   Finance   |   6/4/20192018 FINANCIAL STATEMENTS | Fund StatementsCapital Projects Fund Managed $30.4M in Projects Final Budget 2018 Actual Better (Worse)Revenue $39.2M $42.1M $2.9MExpenditures (46.9)M (30.4)M 16.5MTransfers and Financing2.6M 2.0M (0.6)MNet Change $(5.1)M $13.7M $18.8MRevenue –Variance due to increased sales tax ($2.1M) and timing of State Grants ($664K)Expenditures –Variance for approved projects not yet completed and carried over to 2019 $11.3M;  $2.7M in project savings during 2017Transfers and Financing –VRA funding of Lionshead projects not yet completeFund Balance ‐$33.0MJune 4, 2019 - Page 65 of 242 Town of Vail   |   Finance   |   6/4/20192018 FINANCIAL STATEMENTS | Fund StatementsRETT Fund Managed $4.3M in Projects; $2.6M Ops Final Budget 2018 Actual Better (Worse)Revenue $7.1M $9.0M $1.9MExpenditures (17.4)M (7.0)M 10.4MTransfers and Financing0.0M 0.0M 0.0MNet Change $(10.3)M $2.0 M $12.3MRevenue –Real estate transfer tax was up 19% from budget, or $1.2MExpenditures– Variance due to approved projects not yet completed and carried over to 2019 $8.3M;  Project savings of 1.9MFund Balance ‐$13.1MJune 4, 2019 - Page 66 of 242 VAIL REINVESTMENT AUTHORITY TAX INCREMENT FINANCING$11.9M issued in 2010 for Lionshead improvements$8.3 M outstanding at year endRepayment from incremental property tax revenue from LionsheadredevelopmentTown of Vail   |   Finance   |   6/4/20192018 FINANCIAL STATEMENTS | Debt FinancingJune 4, 2019 - Page 67 of 242 Town of Vail   |   Finance   |   6/4/20192018 FINANCIAL STATEMENTS | Fund Statements10-Year History and 5-Year Projection of Reserves$63.3$72.4$72.9$69.2$55.5$64.9$80.1$82.4$72.5$93.8$64.9$59.0$56.0$59.2$59.5 ‐ 10 20 30 40 50 60 70 80 90 1002009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Am'd2020 2021 2022 2023MillionsAll OtherRETT FundCapital ProjectsFundGeneral FundReserve Min 30%June 4, 2019 - Page 68 of 242 Town of Vail   |   Finance   |   6/4/2019|   Finance   |   4/19/20162018 FINANCIAL STATEMENTSJune 4, 2019 - Page 69 of 242 Financial Statements December 31, 2018 June 4, 2019 - Page 70 of 242 Town of Vail, Colorado Financial Statements December 31, 2018 Table of Contents Page Independent Auditor’s Report A1 – A3 Management’s Discussion and Analysis B1 – B8 Basic Financial Statements: Government-W ide 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: Statement of Fiduciary Net Position C8 Statement of Changes in Fiduciary Net Position C9 Notes to the Financial Statements D1 – D28 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: Real Estate Transfer Tax Fund E3 Vail Marketing Fund E4 Vail Local Marketing District E5 Vail Reinvestment Authority E6 Supplementary Information: Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - F1 Budget (GAAP Basis) and Actual Enterprise Funds: Schedule of Revenues, Expenses and Changes in Net Position – Budget (GAAP Basis) and Actual - Timber Ridge 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 June 4, 2019 - Page 71 of 242 Town of Vail, Colorado Financial Statements December 31, 2018 Table of Contents (Continued) Page Supplementary Information (continued): 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 Combining Statement of Net Position F6 Combining Statement of Revenues, Expenses and Changes in Net Position F7 Combining Statement of Cash Flows F8 Schedule of Project Expenditures - Budget (GAAP Basis) and Actual: Capital Projects Fund F9 Real Estate Transfer Tax Fund F10 Local Highway Finance Report F11 – F12 Undertaking to Provide Continuing Disclosure: Table I – History of Pledged Revenues G1 Table II – History of Assessed Valuations G1 Table III – Mill 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 June 4, 2019 - Page 72 of 242 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com 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) 668-3481 A1 M & A 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, 2018, 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. 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, 2018, 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. June 4, 2019 - Page 73 of 242 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado A2 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. This required supplementary 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 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information in section F 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. McMahan and Associates, L.L.C. May 28, 2019 June 4, 2019 - Page 74 of 242 MANAGEMENT’S DISCUSSION AND ANALYSIS June 4, 2019 - Page 75 of 242 B1 Town of Vail, Colorado Management’s Discussion and Analysis December 31, 2018 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, 2018. 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 2018 fiscal year by $299,846,843 (net position). Of this amount, $2,967,400 is restricted for TABOR emergency reserves and $1,157,437 is restricted by enabling legislation. •The Town’s total net position increased in the 2018 fiscal year by $27,239,319 which was attributable to increase from governmental activities of $25,995,605 and an increase of $1,243,714 from business-type activities. •At December 31, 2018, the fund balance of the General Fund was $33,888,140. Of that amount, $2,860,694 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, culture and recreation, 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. June 4, 2019 - Page 76 of 242 B2 Overview of the Financial Statements (continued) Fund Financial Statements: A fund is an accounting entity that has a set of self-balancing accounts that records all financial transactions for specific activities or governmental functions. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The Town’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the governments’ near-term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town’s governmental funds include the General Fund, Debt Service Fund, Capital Projects Fund and three Special Revenue Funds – Real Estate Transfer Tax Fund, and Vail Marketing 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 D28 of this report. June 4, 2019 - Page 77 of 242 B3 Overview of the Financial Statements (continued) Government-wide Financial Analysis: As previously mentioned, the government-wide financial statements are designed to provide readers with a broad overview and long-term analysis of the Town’s finances, in a manner similar to a private-sector business. Net 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 $293,253,516 at the close of the most recent fiscal year. Approximately 65% of the Town’s net position 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 2018 and 2017. 2018 2017 2018 2017 2018 2017 Current and other assets $ 117,358,973 $ 95,127,383 $ (3,881,728) $ (5,308,249) $ 113,477,245 $ 89,819,134 Capital assets(net) 199,468,530 194,284,899 10,990,976 10,974,450 210,459,506 205,259,349 Total assets 316,827,503 289,412,282 7,109,248 5,666,201 323,936,751 295,078,483 Long-term liabilities outstanding 8,799,267 9,405,545 51,771 63,742 8,851,038 9,469,287 Other liabilities 9,685,709 7,697,700 464,150 252,846 10,149,859 7,950,546 Total liabilities 18,484,976 17,103,245 515,921 316,588 19,000,897 17,419,833 Deferred inflows 5,089,011 5,051,126 - - 5,089,011 5,051,126 Net Position: Invested in capital assets, net of related debt 191,167,641 185,538,575 3,773,485 3,389,763 194,941,126 188,928,338 Restricted 4,029,837 4,063,652 95,000 - 4,124,837 4,063,652 Unrestricted 98,056,037 77,655,684 2,724,842 1,959,850 100,780,879 79,615,534 Total net position $ 293,253,515 $ 267,257,911 $ 6,593,327 $ 5,349,613 $ 299,846,842 $ 272,607,524 Governmental Activities Business-type Activities Total The Town’s current assets from governmental activities and capital assets increased mainly due to cash sale of capital assets for Chamonix Vail homes. During 2017, current assets decreased to cash fund this project. Other major construction projects during 2018 included completion of a new parking structure at Red Sandstone, the new Lionshead Express bus stop, repairs to the Slifer Plaza fountain, major water quality improvements at the East Vail interchange, radio equipment replacement for public safety and the replacement of seven buses. 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 retired during 2018. 2010B Tax Increment Bonds will be retired in 2030. 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. June 4, 2019 - Page 78 of 242 B4 Overview of the Financial Statements (continued) The chart below provides financial information from the Town’s Statement of Activities for the years 2018 and 2017. Governmental Activities: Governmental activities increased the Town’s net position by $27,239,319. The following items represent other significant governmental activities during 2018: An increase in sales tax collections of 9% or 2,294,630 attributable to both increased winter visitation from improved snowfall conditions as well as a return of lodging inventory from prior year renovation closures. The summer season also experienced record growth, with June, July and August all up over 18% from the prior year. Construction activity in 2018 increased 81.5%, or $1,437,560, due to an expansion of Vail Health as well as many high end residential reconstruction projects. Lodging tax increased $186,262, or 5.6% over prior year as well. Lift tax increased 8.4% over prior year with the return of “normal” snowfall as compared with the prior year. Parking revenue was also positively impacted by the snow during 2018, with revenues up 31%, or $1,613,257 over prior year. Property and ownership tax revenue increased $373,537 or 7.56% over the prior year. Long-term liabilities were reduced by $535,000 through principal repayments. Vail Reinvestment Authority Bond 2010A retired in June 2018. 2018 2017 2018 2017 2018 2017 Revenue: Program Revenue Charges for services 12,077,438$ 9,423,805$ 3,544,349$ 3,406,276$ 15,621,787$ 12,830,081$ Operating grants 9,950,445 2,189,089 1,195,187 796,803 11,145,632 2,985,892 Capital grants 870,712 230,810 - - 870,712 230,810 General Revenue Property and ownership tax 10,798,164 9,461,059 - - 10,798,164 9,461,059 Sales and lodging tax 36,317,638 32,043,038 - - 36,317,638 32,043,038 Other taxes 13,942,069 12,177,639 - - 13,942,069 12,177,639 Interest and other revenue 2,357,455 1,719,410 47,592 31,166 2,405,047 1,750,576 Transfers -(150,000) - 150,000 - - Total Revenue 86,313,921 67,094,850 4,787,128 4,384,245 91,101,049 71,479,095 Expenses: General government 7,883,434 7,794,684 - - 7,883,434 7,794,684 Public safety 11,825,254 11,226,473 2,561,192 2,724,952 14,386,446 13,951,425 Public works and transportation 21,947,104 21,276,796 - - 21,947,104 21,276,796 Culture and recreation 10,547,405 12,906,999 - - 10,547,405 12,906,999 Economic development 7,588,736 7,188,463 - - 7,588,736 7,188,463 Housing - - 982,222 968,559 982,222 968,559 Interest 526,383 545,788 - - 526,383 545,788 Total Expenses 60,318,316 60,939,203 3,543,414 3,693,511 63,861,730 64,632,714 Change in Net Position 25,995,605 6,155,647 1,243,714 690,734 27,239,319 6,846,381 Net Position January 1 267,257,911 225,007,635 5,349,613 4,712,636 272,607,524 229,720,271 Restatement of Accumulated Depreciation -36,094,629 - (53,757) -36,040,872 Net Position January 1 (Restated)267,257,911 261,102,264 5,349,613 4,658,879 272,607,524 265,761,143 Net Position December 31 293,253,516$ 267,257,911$ 6,593,327$ 5,349,613$ 299,846,843$ 272,607,524$ Town of Vail's Changes in Net Position Total Governmental Activities Business-type Activities June 4, 2019 - Page 79 of 242 B5 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 $97,717,507 an increase of $19,874,700 from the prior year’s ending fund balances primarily due to the sales of the Chamonix Vail homes. The following details ending fund balances for the past five years: Fund 2014 2015 2016 2017 2018 General Fund $19,687,223 $23,622,509 $27,300,260 $29,289,331 $33,888,140 Capital Projects Fund 30,409,349 40,542,297 44,836,870 32,761,887 46,845,813 Real Estate Transfer Tax 16,282,049 17,797,519 11,256,285 11,142,914 13,150,553 Conference Center Fund 1,962,353 ---- Vail Marketing Fund 196,757 203,263 259,452 323,606 303,241 Vail Local Marketing District 1,361,593 1,552,198 1,590,734 1,260,297 1,270,453 Vail Reinvestment Authority 5,924,250 5,443,901 4,312,149 3,064,772 2,259,307 Total $75,823,574 $89,161,687 $89,555,750 $77,842,807 $97,717,507 The Town’s reserves continue to be strong allowing for the cash funding on many recent capital projects. During 2014 and 2015 the General Fund continued to see large increases in reserves of $3.3M and $3.9M due to increases in sales tax collections, construction activity, parking, and lift tax. In 2016, the General Fund balance increased by $3.7M from prior year in part due to increases is sales tax, parking revenue, property taxes, and lift tax. Expenditure savings of $2.4M also contributed to the increase in reserves. In 2017, the General Fund reserves increased by $2M primarily due to expenditures savings from staffing vacancies and department operational savings while overall revenue collections remained flat. During 2018, General Fund reserves increased by $4.6M. This was primarily due an increase in sales tax collections , construction activity, as well as expenditure savings due to staffing vacancies and department operations savings. Sales tax collections of $27.9M were up 9% from prior year primarily due to increased snow fall when compared to prior year and the return of lodging inventory that was closed in 2017 due to hotel renovations. While a “normal” snow fall contributed to a solid start to the 2018-19 winter season in sales tax collections, parking structure revenues, and lift tax collections (up the summer months had record growth again in sales tax collections, with June, August and October all up 18% compared to the prior year. July and September followed closely behind, with 9% and 11% increases, respectively. Winter months had solid growth in March (14%) and December (10%), traditionally the highest value months for sales tax collections. Reserve levels in the Capital Projects Fund and Real Estate Transfer Tax Fund normally fluctuate as funds are spent on major projects. In 2018, the Capital Projects Fund increased $14.1 million, mainly due to the sale of Chamonix Vail homes ($17.7M) and increased sales tax collections ($1.8M), offset by the cash funding of many projects. Real Estate Transfer Tax reserves also increased with RETT collections up $1.3M, or 21.1% from the prior year. RETT was up mainly due to the sale of higher priced properties. June 4, 2019 - Page 80 of 242 B6 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 generated $4.5M in 2017, providing a funding mechanism for capital improvements within the district by covering annual debt service payments of $1.1M relating to $11.9M in bonds issued in 2010. The bonds have funded several projects including a new Transit and W elcome Center, a remodel of the Vail Public 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, reconstruction of the Lionshead parking entry, Zeke M. Pierce Skate Park, and the Sandstone Underpass. The bonds are scheduled to be paid off by 2030, when the district will expire. Over the last five years the town’s strong reserve levels have enabled Town Council to cash-fund all capital projects. W hile reserves at the end of 2018 were at $93.8M, they are expected to decrease to $47.5M in 2019 with current ongoing projects. June 4, 2019 - Page 81 of 242 B7 Financial Analysis of the Town’s Funds (continued) Proprietary Funds: The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. 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 position for the Heavy Equipment Fund, Timber Ridge Enterprise Fund, and the Dispatch Services Fund at the end of the year were $2,000,332; $1,094,197; and $1,630,645, respectively. The Health Insurance Fund net position was $3,346,483, 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 $2,152,856 or 5.3% mainly due to large increases in sales tax, parking revenue and construction permits and fees. Expenditures were below budget by $2,893,349 or 7.4% due to staffing vacancies and operational savings resulting from conservative spending by town departments. Capital Assets: The Town’s government-wide capital assets, net of accumulated depreciation, increased by $5,183,631 in 2018. Capital additions included seven new hybrid buses, a new parking structure at Red Sandstone, Phase I of a new data center at the West Vail fire station, major water quality improvements at the East Vail interchange, and the completion of the Chamonix Vail homes. The town also invested in a new housing program called the Vail InDeed and acquired 15 new deed restricted units for the community. Long-term Debt: As of the end of the current fiscal year, the Vail Reinvestment Authority had $8,270,000 of tax increment bonds outstanding, of which $555,000 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. June 4, 2019 - Page 82 of 242 B8 Financial Analysis of the Town’s Funds (continued) Sales Tax: During 2018, 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 a 9% growth in sales tax when compared to the prior year. Next Year’s Budget and Rates: The Town’s General Fund balance at the end of the current fiscal year was $33,888,140, representing 79% of annual revenue. Additional information, as well as a detailed classification of the Town’s net capital assets, can be found in the Notes to the Financial Statements in footnote IV.C of this report. 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. June 4, 2019 - Page 83 of 242 GOVERNMENT-WIDE FINANCIAL STATEMENTS June 4, 2019 - Page 84 of 242 Town of Vail, Colorado Statement of Net Position December 31, 2018 Governmental Business-type Activities Activities Total Assets: Equity in pooled cash and investments 86,044,206 2,076,677 88,120,883 Unrestricted cash and investments 6,548,851 1,407,070 7,955,921 Cash - restricted 1,739,142 83,594 1,822,736 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 5,089,011 - 5,089,011 Other taxes 6,304,615 - 6,304,615 Other governments 1,689,006 - 1,689,006 Other 761,593 8,787 770,380 Inventory 252,228 - 252,228 Prepaid expenses 43,188 262 43,450 Interest receivable 38,859 - 38,859 Internal balances 8,117,491 (8,117,491) - Rent receivable -659,373 659,373 Loans receivable: Collectible in more than one year 730,783 - 730,783 Capital assets not being depreciated 50,270,530 4,399,500 54,670,030 Capital assets being depreciated, net of accumulated depreciation 149,198,000 6,591,476 155,789,476 Total Assets 316,827,503 7,109,248 323,936,751 Liabilities: Accounts payable 4,537,054 282,504 4,819,558 Due to other governments 802,293 - 802,293 Retainage payable 667,028 - 667,028 Accrued salaries and wages 578,373 36,619 614,992 Interest payable 42,523 38,859 81,382 Other unearned revenue 1,603,190 434 1,603,624 Deposits payable 388,817 83,547 472,364 Compensated absences: Due within one year 480,543 22,187 502,730 Due in more than one year 1,084,267 51,771 1,136,038 Bonds payable: Due within one year 555,000 - 555,000 Due in more than one year 7,715,000 - 7,715,000 Capital lease obligation: Due within one year 30,889 - 30,889 Total Liabilities 18,484,976 515,921 19,000,897 Deferred Inflow of Resources: Unavailable property taxes 5,089,011 - 5,089,011 Total Deferred Inflow of Resources 5,089,011 - 5,089,011 Net Position: Net investment in capital assets 191,167,641 3,773,485 194,941,126 Restricted for: Emergencies 2,872,400 95,000 2,967,400 Other purposes 1,157,437 - 1,157,437 Unrestricted 98,056,037 2,724,842 100,780,879 Total Net Position 293,253,516 6,593,327 299,846,843 The accompanying notes are an integral part of these financial statements. C1 June 4, 2019 - Page 85 of 242 Town of Vail, ColoradoStatement of ActiviesFor the Year Ended December 31, 2018Net (Expense) Revenue andProgram RevenuesChanges in Net PositionOperatingCapitalCharges for Grants and Grants and Governmental Business-typeExpensesServices Contributions ContributionsActivitiesActivitiesTotalGovernmental Activities: General government7,883,434 4,693,757 1,744,230 - (1,445,447) (1,445,447) Public safety11,825,254 250,192 - - (11,575,062) (11,575,062) Public work and transportation21,947,104 6,634,344 7,854,565 1,653(7,456,542) (7,456,542) Culture and recreation10,547,405 161,543 351,650 700,000 (9,334,212) (9,334,212) Economic development7,588,736 337,602 - 169,059 (7,082,075) (7,082,075) Interest on long-term debt526,383 - - - (526,383) (526,383) Total Governmental Activities60,318,316 12,077,438 9,950,445 870,712 (37,419,721) (37,419,721) Business-type Activities: Dispatch services2,561,192 1,936,890 1,195,187 - 570,885 570,885 Housing (Timber Ridge)982,222 1,607,459 - - 625,237 625,237 Total Business-type Activities3,543,414 3,544,349 1,195,187 -1,196,122 1,196,122 Totals63,861,730 15,621,787 11,145,632 870,712 (37,419,721) 1,196,122 (36,223,599) General Revenues:Taxes: Sales and use taxes32,828,349 - 32,828,349 Real estate transfer taxes7,649,013 - 7,649,013 Lodging taxes3,489,289 - 3,489,289 Property and specific ownership taxes10,798,164 - 10,798,164 Ski area lift ticket admissions tax5,103,480 - 5,103,480 Franchise taxes1,124,577 - 1,124,577 Cigarette taxes64,999- 64,999Investment earnings1,230,393 34,6861,265,079 Gain (loss) on disposal of capital assets113,456 - 113,456 Gain (loss) on workforce housing sales67,623- 67,623Miscellaneous945,983 12,906958,889 Total General Revenues and Transfers63,415,326 47,59263,462,918 Change in Net Position25,995,605 1,243,714 27,239,319 Net Position - January 1267,257,911 5,349,613 272,607,524 Net Position - December 31293,253,516 6,593,327 299,846,843 The accompanying notes are an integral part of these financial statements.C2June 4, 2019 - Page 86 of 242 FUND FINANCIAL STATEMENTS June 4, 2019 - Page 87 of 242 Real Estate Vail Vail Local Vail Capital Total General Transfer Tax Marketing Marketing Reinvestment Projects Governmental Fund Fund Fund District Authority Fund Funds Assets: Equity in pooled cash and investments 28,731,431 12,996,050 305,791 -- 38,334,150 80,367,422 Cash and cash equivalents - Unrestricted 11,255 --779,646 5,757,950 - 6,548,851 Cash and cash equivalents - Restricted ---- 1,195,164 - 1,195,164 Receivables, net of allowance for uncollectible accounts: Property taxes assessed 5,089,011 ----- 5,089,011 Other taxes 5,497,545 115,498 -691,572 -- 6,304,615 Other governments 138,377 875,570 ---675,059 1,689,006 Other 452,084 1,891 -- 4,795 216,723 675,493 Due from other funds 243,604 ---- 4,599,998 4,843,602 Loans receivable 730,783 ---- 8,117,491 8,848,274 Prepaid expenses 42,019 --669 --42,688 Total Assets 40,936,109 13,989,009 305,791 1,471,887 6,957,909 51,943,421 115,604,126 Liabilities and Fund Equity: Liabilities: Accounts payable 780,485 206,272 2,550 56,434 - 2,884,102 3,929,843 Due to other governments 42,528 330,295 ---429,470 802,293 Due to other funds ---145,000 4,698,602 - 4,843,602 Retainage payable -44,699 ---622,329 667,028 Accrued payroll and related liabilities 562,835 -----562,835 Unearned revenue 184,293 257,190 --- 1,161,707 1,603,190 Deposits payable 388,817 -----388,817 Total Liabilities 1,958,958 838,456 2,550 201,434 4,698,602 5,097,608 12,797,608 Deferred Inflows of Resources: Property taxes 5,089,011 ----- 5,089,011 Total Deferred Inflows of Resources 5,089,011 ----- 5,089,011 Fund Balances: Non-spendable 772,802 --669 - 8,117,491 8,890,962 Restricted 2,860,694 --105,000 1,064,143 - 4,029,837 Committed 10,903,981 13,150,553 303,241 1,164,784 - 34,646,127 60,168,686 Assigned ---- 1,195,164 4,082,195 5,277,359 Unassigned 19,350,663 ----- 19,350,663 Total Fund Balances 33,888,140 13,150,553 303,241 1,270,453 2,259,307 46,845,813 97,717,507 Total Liabilities and Fund Balances 40,936,109 13,989,009 305,791 1,471,887 6,957,909 51,943,421 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.194,199,597 Other long-term assets and unearned charges are not available for current period expenditures and, therefore, are not reported in the funds.582,837 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.10,615,748 Long-term liabilities, including bonds payable, interest payable, capital leases, and compensated absences within governmental activities are not due and payable in the current period and, therefore, are not reported in the funds.(9,862,173) Net Position of Governmental Activities 293,253,516 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2018 The accompanying notes are an integral part of these financial statements. C3 June 4, 2019 - Page 88 of 242 Real Estate Vail Vail Local Vail Capital Total General Transfer Tax Marketing Marketing Reinvestment Projects Governmental Fund Fund Fund District Authority Fund Funds Revenues: Taxes 27,724,888 7,649,013 - 3,489,289 5,475,660 15,736,030 60,074,880 Permits and licenses 3,201,300 - 337,602 - - - 3,538,902 Intergovernmental revenue 2,650,966 968,865 - - - 946,886 4,566,717 Charges for services 8,782,803 152,751 - - - 159,135 9,094,689 Investment income 436,425 157,216 4,718 1,397 4,045 562,924 1,166,725 Interest subsidy - - - - 169,059 - 169,059 Workforce housing sales - - - - - 17,748,304 17,748,304 Miscellaneous 191,826 91,578 - - - 6,997,530 7,280,934 Total Revenues 42,988,208 9,019,423 342,320 3,490,686 5,648,764 42,150,810 103,640,211 Expenditures: General government 7,950,846 - - - - - 7,950,846 Public safety 10,723,586 231,468 - - - - 10,955,054 Public works and transportation 15,334,826 4,331,417 - - - 32,634,757 52,301,000 Culture and recreation 1,233,974 2,448,899 - - - - 3,682,873 Economic development 988,800 - 2,548,805 3,480,530 792,478 - 7,810,613 Debt service: Principal - - - - 535,000 29,701 564,701 Interest - - - - 526,753 2,424 529,177 Total Expenditures 36,232,032 7,011,784 2,548,805 3,480,530 1,854,231 32,666,882 83,794,264 Excess (Deficiency) of Revenues Over Expenditures 6,756,176 2,007,639 (2,206,485) 10,156 3,794,533 9,483,928 19,845,947 Other Financing Sources (Uses): Sale of assets 28,753 - - - - - 28,753 Transfers in - - 2,186,120 - - 4,599,998 6,786,118 Transfers (out) (2,186,120) - - - (4,599,998) - (6,786,118) Total Other Financing Sources (Uses)(2,157,367) - 2,186,120 - (4,599,998) 4,599,998 28,753 Net Change in Fund Balances 4,598,809 2,007,639 (20,365) 10,156 (805,465) 14,083,926 19,874,700 Fund Balances - January 1 29,289,331 11,142,914 323,606 1,260,297 3,064,772 32,761,887 77,842,807 Fund Balances - December 31 33,888,140 13,150,553 303,241 1,270,453 2,259,307 46,845,813 97,717,507 Net Change in Fund Balances of Governmental Funds 19,874,700 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.5,044,163 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.148,148 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.564,700 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 345,174 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. 18,720 Change in Net Position of Governmental Activities 25,995,605 Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2018 The accompanying notes are in integral part of these financial statements. C4 June 4, 2019 - Page 89 of 242 Enterprise Fund -Governmental Dispatch Activities - Enterprise Fund - Services Internal Timber Ridge Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments -2,076,677 2,076,677 5,676,784 Cash and cash equivalents - Unrestricted 1,407,070 - 1,407,070 - Accounts receivable, net of allowance for uncollectibles 8,708 79 8,787 86,100 Inventory ---252,228 Prepaid expenses 262 -262 500 Total Current Assets 1,416,040 2,076,756 3,492,796 6,015,612 Non-current Assets: Cash and cash equivalents - Restricted 83,594 -83,594 - Rent receivable 659,373 -659,373 - Property, plant, and equipment, net of accumulated depreciation 9,997,974 993,002 10,990,976 5,268,933 Total Non-current Assets 10,740,941 993,002 11,733,943 5,268,933 Total Assets 12,156,981 3,069,758 15,226,739 11,284,545 Liabilities: Current Liabilities: Accounts payable 41,970 240,534 282,504 607,210 Deposits payable 83,547 -83,547 - Unearned revenue 434 -434 - Accrued interest payable 38,859 -38,859 - Accrued salaries and wages -36,619 36,619 15,538 Current portion of compensated absences -22,187 22,187 13,815 Total Current Liabilities 164,810 299,340 464,150 636,563 Non-current Liabilities: Notes payable 8,117,491 - 8,117,491 - Compensated absences, net of current portion -51,771 51,771 32,234 Total Non-current Liabilities 8,117,491 51,771 8,169,262 32,234 Total Liabilities 8,282,301 351,111 8,633,412 668,797 Net Position: Net investment in capital assets 2,780,483 993,002 3,773,485 5,268,933 Restricted for emergencies -95,000 95,000 - Unrestricted 1,094,197 1,630,645 2,724,842 5,346,815 Total Net Position 3,874,680 2,718,647 6,593,327 10,615,748 Town of Vail, Colorado Proprietary Funds Statement of Net Position December 31, 2018 Business-type Activities The accompanying notes are an integral part of these financial statements. C5 June 4, 2019 - Page 90 of 242 Enterprise Fund -Governmental Dispatch Activities - Enterprise Fund - Services Internal Timber Ridge Fund TOTAL Service Funds Operating Revenues: Charges for services - Internal - 659,608 659,608 7,045,955 Charges for services - External - 1,277,282 1,277,282 773,461 Rent 1,452,310 - 1,452,310 - Ground lease 155,149 - 155,149 - Insurance reimbursements - - - 9,128 Other 12,906 13,622 26,528 20,733 Total Operating Revenues 1,620,365 1,950,512 3,570,877 7,849,277 Operating Expenses: Operations 514,238 2,411,268 2,925,506 2,421,021 Health claims and premiums - - - 4,851,442 Depreciation 345,762 149,924 495,686 845,214 Total Operating Expenses 860,000 2,561,192 3,421,192 8,117,677 Operating Income (Loss)760,365 (610,680) 149,685 (268,400) Non-Operating Revenues (Expenses): Intergovernmental revenues - 1,181,562 1,181,562 - Gain (loss) on disposal of assets - - - 84,702 Investment income 12,008 22,678 34,686 65,964 Interest expense (122,221) - (122,221) - Total Non-Operating Revenues (Expenses)(110,213) 1,204,240 1,094,027 150,666 Income (Loss) Before Capital Contributions 650,152 593,560 1,243,712 (117,734) Capital Contributions, Net - - - 265,882 Change in Net Position 650,152 593,560 1,243,712 148,148 Net Position - January 1 3,224,528 2,125,085 5,349,613 10,467,600 Net Position - December 31 3,874,680 2,718,645 6,593,325 10,615,748 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2018 Business-type Activities The accompanying notes are an integral part of these financial statements. C6 June 4, 2019 - Page 91 of 242 Enterprise Fund -Governmental Dispatch Activities - Enterprise Fund - Services Internal Timber Ridge Fund TOTAL Service Funds Cash Flows From Operating Activities: Cash received from other funds -659,608 659,608 7,045,955 Cash received from tenants for rent 1,451,862 -1,451,862 - Cash received from (refunded to) tenants for security deposits, net (925)-(925)- Other cash receipts 24,302 1,290,825 1,315,127 798,916 Cash paid for goods and services (499,430) (270,327) (769,757) (5,939,663) Cash paid to employees -(1,952,654) (1,952,654) (1,100,890) Net Cash Provided (Used) by Operating Activities 975,809 (272,548) 703,261 804,317 Cash Flows From Non-Capital Financing Activities: Transfer from (to) other funds (367,196) -(367,196) - Cash received from operating grants -1,181,562 1,181,562 - Net Cash Provided by Non-Capital Financing Activities (367,196) 1,181,562 814,366 - Cash Flows From Capital and Related Financing Activities: Cash received on disposal of fixed assets ---23,020 Interest paid (124,516) -(124,516) - Acquisition and construction of capital assets (79,991) (432,221) (512,212) (733,114) Net Cash (Used) by Capital and Related Financing Activities (204,507) (432,221) (636,728) (710,094) Cash Flows From Investing Activities: Interest on investments 12,008 22,678 34,686 65,964 Net Cash Provided by Investing Activities 12,008 22,678 34,686 65,964 Net Increase (Decrease) in Cash and Cash Equivalents 416,114 499,471 915,585 160,187 Cash and Cash Equivalents - January 1 1,074,550 1,577,206 2,651,756 5,516,597 Cash and Cash Equivalents - December 31 1,490,664 2,076,677 3,567,341 5,676,784 Cash and Cash Equivalents at December 31 is Comprised of: Equity in pooled cash and investments -2,076,677 2,076,677 5,676,784 Cash and cash equivalents - Unrestricted 1,407,070 -1,407,070 - Cash and cash equivalents - Restricted 83,594 -83,594 - Total - Cash and Cash Equivalents 1,490,664 2,076,677 3,567,341 5,676,784 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income/(Loss)760,365 (610,680) 149,685 (268,400) Adjustments: Depreciation 345,762 149,924 495,686 845,214 (Increase) decrease in accounts receivable 11,396 (79)11,317 (4,404) (Increase) decrease in rent receivable (155,149) -(155,149) - (Increase) decrease in inventory ---27,385 (Increase) decrease in prepaid expenses 92 -92 - Increase (decrease) in accounts payable 14,716 233,937 248,653 214,778 Increase (decrease) in tenant security deposits (925)-(925)- Increase (decrease) in prepaid rent (448)-(448)- Increase (decrease) in other liabilities -(36,000) (36,000) - Increases (decreases) in accrued wages and benefits -(9,650)(9,650)(10,256) Total Adjustments 215,444 338,132 553,576 1,072,717 Net Cash Provided (Used) by Operating Activities 975,809 (272,548) 703,261 804,317 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2018 Business-type Activities The accompanying notes are an integral part of these financial statements. C7 June 4, 2019 - Page 92 of 242 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 66,093,640 16,014,948 Loans to participants 485,198 - Total Assets 66,578,837 16,014,948 Net Position: Held in trust for pension benefits and other purposes 66,578,837 16,014,948 Total Net Position 66,578,837 16,014,948 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Position December 31, 2018 The accompanying notes are an integral part of these financial statements. C8 June 4, 2019 - Page 93 of 242 Deferred Pension Compensation Trust Plan Additions: Contributions 4,099,166 990,224 Investment income (loss) (2,874,260) (721,487) Total Additions 1,224,906 268,738 Deductions: Professional fees 67,120 12,444 Benefits paid 6,342,062 1,177,640 Total Deductions 6,409,182 1,190,085 Change in Net Position (5,184,275) (921,347) Net Position - January 1 71,763,112 16,936,295 Net Position - December 31 66,578,837 16,014,948 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements C9 June 4, 2019 - Page 94 of 242 NOTES TO THE FINANCIAL STATEMENTS June 4, 2019 - Page 95 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 D1 I. Summary of Significant Accounting Policies The Town of Vail, Colorado (the “Town”) was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under a Council-Manager form of government. The Town’s major operations include public safety, public works and transportation, culture and recreation, economic development, administration (general government), and housing. The Town’s financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”). The Governmental Accounting Standards Board (“GASB”) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). 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 two blended component units reported in the Town’s financial statements: Vail Local Marketing District (the “District”), and Vail Reinvestment Authority (the “Authority”). The financial statements of these entities can be obtained from the Town’s administrative offices. A third blended component unit, 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. 2.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. June 4, 2019 - Page 96 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D2 I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 3.Town of Vail General Improvement District No. 1 On October 3, 2006, the Town Council accepted a petition requesting formation of Town of Vail General 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, 2018, 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 position resulting from the current year’s activities. June 4, 2019 - Page 97 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D3 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 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. 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 Town reports the following major proprietary or business-type funds: The Timber Ridge Enterprise Fund ("Timber Ridge") accounts for the activities of the 198-unit rental housing project located in the Town (the “Project”). The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. June 4, 2019 - Page 98 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D4 I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements (continued) 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. 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. June 4, 2019 - Page 99 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D5 I. Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 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 Presentation 1.Equity in Pooled Cash and Investments The Town has a policy of central cash management whereby cash balances of each of the Town’s funds are pooled in and invested in certain investments for all funds except the Pension Trust Fund and the Deferred Compensation Plan Fund. Additionally, the component units do not participate in the Town’s central cash management. Equity in pooled cash and investments include demand deposits, short-term investments with original maturities of three months or less from the date of acquisition, and long-term investments in U.S. government obligations. Investments are stated at fair market value. 2. Cash, Cash Equivalents, and Investments Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. June 4, 2019 - Page 100 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D6 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 2. Cash, Cash Equivalents, and Investments (continued) Cash equivalents are both readily convertible to cash and are so near their maturity that 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. Investments are stated at fair value. The change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. The Town’s investment policy permits investments in the following types of obligations: •U.S. Treasury Obligations •Government Agency Securities •FDIC-insured Certificates of Deposit •Colorado Investment Pools •Money Market Mutual Funds •Taxable Municipal Securities 3.Receivables Receivables are reported net of an allowance for uncollectible accounts. Loans receivable in governmental funds consist of housing and other 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. June 4, 2019 - Page 101 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D7 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 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” 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. Assets under capital leases are recorded at the present value of future minimum lease payments and amortized over the shorter of the lease term or the estimated useful life of the asset. June 4, 2019 - Page 102 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D8 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 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. 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. June 4, 2019 - Page 103 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D9 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 12.Fund Balance Classifications Governmental accounting standards establish fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications include Non-spendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of the funds, but also provide clarity to the level of restriction placed upon fund balance. Fund balance can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further details of the various fund balance classifications refer to Note IV.L. General Fund Real Esate Transfer Tax Fund Vail Marketing Fund Vail Local Marketing Disctict Vail Reinvestment Authority Capital Projects Fund Nonspendable: Non-current receivables 730,783 - - - - - Loans to other funds - - - - - 8,117,491 Prepaid items 42,019 - - 669 - - Total Nonspendable 772,802 - - 669 - 8,117,491 Restricted: Emergency reserve 2,767,406 - - 105,000 - - Police Funds 93,288 - - - - - Tax increment financing - - - - 1,064,143 - Total Restricted 2,860,694 - - 105,000 1,064,143 - Committed: Employees housing ownership program 159,217 - - - - - Capital projects - - - - - 34,568,136 Parks and recreation - 13,150,553 - - - - Housing - - - - - 77,991 Operating reserve 10,744,764 - - - - - Destination marketing - - 303,241 1,164,784 - - Total Committed 10,903,981 13,150,553 303,241 1,164,784 - 34,646,127 Assigned: Capital maintenance - - - - - 4,082,195 Debt service - - - - 1,195,164 - Total Assigned - - - - 1,195,164 4,082,195 June 4, 2019 - Page 104 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D10 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 W hen 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 $194,199,597 difference is related to property, plant and equipment of $346,371,217 less accumulated depreciation of $152,171,620. 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 $582,837 difference is comprised of pension forfeitures of $543,978 and interest receivable of $38,859. Net position totaling $10,615,748 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 $9,862,173 difference is related to bonds and notes payable of $8,270,000; capital lease obligations of $30,889, accrued compensated absences of $1,518,761; and interest payable of $42,523. June 4, 2019 - Page 105 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D11 II.Reconciliation of Government-wide and Fund Financial Statements (continued) B.Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes reconciliation between net change in fund balances of governmental funds and changes in net position 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 $5,044,163 difference are comprised of capital outlay of $36,079,062 less depreciation expense of $9,334,057; and net book value of disposed assets of $21,700,842. III. Stewardship, Compliance, and Accountability A.Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town’s Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund, Timber Ridge Enterprise Fund, and Dispatch Services Fund. As required by Colorado Statutes, all funds have legally adopted budgets and appropriations. The total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if unanticipated revenues offset them. All appropriations lapse at year-end. The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: Heavy Timber Ridge Dispatch Equipment Enterprise Services Fund Fund Fund Change in Net Position - Budget Basis 101,417$ 548,727$ 294,162$ add/(less): Contribution from Capital Projects Fund 265,882 - - Loan principal repayment to Capital Projects Fund - 367,196 - Change in compensated absences 10,440 - 17,101 Capitalized assets 733,115 79,991 432,221 Depreciation (845,214) (345,762) (149,924) Net book value of disposed assets (14,313) - - Change in Net Position - GAAP Basis 251,327$ 650,152$ 593,560$ June 4, 2019 - Page 106 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D12 III.Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) The Town followed these procedures in preparing, approving, and enacting its budget for 2018: (1) For the 2018 budget year, prior to August 25, 2017, 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 2017 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2017, 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 2017 were collected in 2018 and taxes certified in 2018 will be collected in 2019. 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. The District’s budget timetable varies from the Town’s. The District followed these procedures in preparing, approving, and enacting its budget for 2018: (1) On or before September 30, 2017, 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, 2017. (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, 2017. The Board adopted the 2018 budget on October 17, 2017. (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. June 4, 2019 - Page 107 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D13 III.Stewardship, Compliance, and Accountability (continued) B.Budgetary Information – Vail Local Marketing District 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, 2018 fund balance in the General Fund and the Dispatch Fund for this purpose in the amount of $2,872,400 and $95,000 respectively, 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. June 4, 2019 - Page 108 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D14 III.Stewardship, Compliance, and Accountability (continued) C.TABOR Amendment (continued) The remaining restrictions of the TABOR Amendment apply, which are: •Voter approval of all new taxes and tax rate increases; •Voter approval for new or additional Town debt; •No increase or imposition of a new real estate transfer tax; and, •All election requirements remain in effect. The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. D. TABOR Amendment – Vail Local Marketing District As required by TABOR, the District has reserved $105,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2018. 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.Deposit 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 $17,344,944. The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2018. June 4, 2019 - Page 109 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D15 IV.Detailed Notes on all Funds (continued) A.Deposit and Investments (continued) Fair Value of Investments The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. At December 31, 2018, the Town had the following recurring fair value measurements: Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active; Negotiable Certificates of Deposit: Matrix pricing based on the securities relationship to benchmark quoted prices; Debt securities, namely mortgage pools, classified in Level 3 are valued using appraisal service. 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 $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor’s. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Investments Measured at Fair Value:Total Level 1 Level 2 Level 3 Certificate of Deposits 15,721,823$ -$ 15,721,823$ -$ Government Agency Securities 15,437,648 - 15,437,648 - Mortgage Pools 11,404,298 - - 11,404,298 Total 42,563,769$ -$ 31,159,471$ 11,404,298$ Investments Measured at Net Asset Value: Colotrust 28,134,253$ Fair Value Measurements Using June 4, 2019 - Page 110 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D16 IV.Detailed Notes on all Funds (continued) A.Deposit and Investments (continued) 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. 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 8% At year end, the Town had the following investments and maturities: Carrying Type Rating Maturities Value Deposits: Cash on hand 1,980$ Demand deposits 27,201,880 Certificates of deposit <1 year 2,325,025 Certificates of deposit <5 years 13,396,798 Total deposits 42,925,683$ Investments: US agencies - FHLMC, FHLB, FNMA AA+<5 years 15,437,648$ Mortgage pools AA+N/A 11,404,298 Colotrust AAAm N/A 28,134,253 Pension and Section 457 investments N/A N/A 82,108,588 Total investments 137,084,787 Total deposits and investments 180,010,470$ Reconciliation to Statement of Net Position: Equity in pooled cash and investments 88,123,225$ Cash and cash equivalents - Unrestricted 7,955,921 Cash and cash equivalents - Restricted 1,822,736 Fiduciary Funds 82,108,588 Total 180,010,470$ 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. June 4, 2019 - Page 111 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D17 IV.Detailed Notes on all Funds (continued) B. Receivables Receivables as of year-end for the Town’s funds, including applicable allowances for uncollectible accounts, are as follows: Capital Real Estate Vail Vail Local General Projects Transfer Marketing Marketing Fund Fund Tax Fund Fund District Receivables: Property taxes 5,089,011$ -$ -$ -$ -$ Other taxes 5,497,545 - 115,498 - 691,572 Other governments 138,377 675,059 875,570 - - Other 452,084 216,723 1,891 - - Gross Receivables 11,177,017 891,782 992,959 - 691,572 Less: Allowance for uncollectibles (1,000) - - - - Net Receivables 11,176,017$ 891,782$ 992,959$ -$ 691,572$ Vail Heavy Rein-Equip-Dispatch Health Timber vestment ment Services Insurance Ridge Authority Fund Fund Fund Total Receivables: Property taxes -$ -$ -$ -$ -$ 5,089,011$ Other taxes - - - - - 6,304,615 Other governments - - - - - 1,689,006 Other 8,708 4,795 78,137 79 7,963 770,380 Gross Receivables 8,708 4,795 78,137 79 7,963 13,853,012 Less: Allowance for uncollectibles - - - - - (1,000) Net Receivables 8,708$ 4,795$ 78,137$ 79$ 7,963$ 13,852,012$ 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 $1,603,190 and is comprised of the following: Capital Real Estate General Projects Transfer Tax Fund Fund Fund Total Unearned revenues: Art projects -$ -$ 169,650$ 169,650$ Enviromental programs - - 64,757 64,757 Library grants 148,057 - - 148,057 Police programs 36,236 33,000 - 69,236 Construction projects - 1,128,707 22,784 1,151,491 184,293$ 1,161,707$ 257,190$ 1,603,190$ June 4, 2019 - Page 112 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D18 IV.Detailed Notes on all Funds (continued) B.Receivables (continued) Unearned revenue for construction projects in the Capital Projects Fund includes $455,073 collected from Holy Cross Energy for community enhancement to place utilities underground. The other $673,634 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. Loans receivable at December 31, 2018 are comprised of the following: a)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, 2018 was $730,783. As of December 31, 2018, the Town had a receivable totaling $ 77,804 from a third-party vendor controlled by a board member for the Town of Vail. (This section of the page is intentionally left blank) June 4, 2019 - Page 113 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D19 IV.Detailed Notes on all Funds (continued) C.Capital Assets Capital asset activity for the year ended December 31, 2018 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 27,430,658$ 152,687$ (2,346,965)$ 25,236,380$ Art 2,348,334 284,391 - 2,632,725 Construction in Process 18,276,535 15,887,441 (17,441,462) 16,722,514 Intangibles - 5,678,911 - 5,678,911 Total Capital Assets, Not Being Depreciated 48,055,527 22,003,430 (19,788,427) 50,270,530 Capital Assets, Being Depreciated: Buildings and improvements 112,706,259 20,690,430 (19,517,815) 113,878,874 Infrastructure and improvements 147,894,172 6,719,775 (4,852,759) 149,761,188 Equipment and vehicles 46,370,195 5,105,884 (5,603,483) 45,872,596 Total Capital Assets Being Depreciated 306,970,626 32,516,089 (29,974,057) 309,512,658 Less Accumulated Depreciation For: Buildings and improvements (55,769,508) (2,735,985) 163,939 (58,341,554) Infrastructure and improvements (75,020,477) (4,577,711) 4,852,759 (74,745,429) Equipment and vehicles (29,951,270) (2,865,575) 5,589,170 (27,227,675) Total Accumulated Depreciation (160,741,255) (10,179,271) 10,605,868 (160,314,658) Total Capital Assets Being Depreciated, Net 146,229,371 22,336,818 (19,368,189) 149,198,000 Governmental Activities Capital Assets, Net 194,284,898$ 44,340,248$ (39,156,616)$ 199,468,530$ Business-type Activities Capital Assets, Not Being Depreciated: Land 4,399,500$ -$ -$ 4,399,500$ Total Capital Assets, Not Being Depreciated 4,399,500 - - 4,399,500 Capital Assets, Being Depreciated: Buildings and improvements 8,962,281 76,158 - 9,038,439 Infrastructure and improvements 858,082 3,833 - 861,915 Equipment 2,599,409 432,221 (121,302) 2,910,328 Total Capital Assets Being Depreciated 12,419,772 512,212 (121,302) 12,810,682 Less Accumulated Depreciation For: Buildings and improvements (3,820,991) (299,638) - (4,120,629) Infrastructure and improvements (136,076) (45,366) - (181,442) Equipment (1,887,755) (150,682) 121,302 (1,917,135) Total Accumulated Depreciation (5,844,822) (495,686) 121,302 (6,219,206) Total Capital Assets Being Depreciated, Net 6,574,950 16,526 - 6,591,476 Business-type Activities Capital Assets, Net 10,974,450$ 16,526$ -$ 10,990,976$ June 4, 2019 - Page 114 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D20 IV.Detailed Notes on all Funds (continued) C.Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Depreciation on capital 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, 2018, the Town had $68,592,586 of fully depreciated assets. D. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. For accounting purposes, these leases are considered to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial statements. E. 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. 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, 2018, the rent receivable accrued in the Timber Ridge Enterprise Fund was $659,373. No payments are due from Lion’s Ridge until 2025. Governmental Activities: General government 1,349,199$ Public safety 518,489 Public works and transportation 6,151,548 Culture and recreation 2,160,035 Total Depreciation Expense - Governmental Activities 10,179,271$ Business-type Activities: Dispatch services 149,924$ Housing 345,762 Total Depreciation - Business-type Activities 495,686$ June 4, 2019 - Page 115 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D21 IV.Detailed Notes on all Funds (continued) F.Interfund Receivables, Payables, and Transfers At December 31, 2018, Vail Reinvestment Authority owed the Capital Projects Fund and General Fund $4,599,998 respectively in connection with construction projects within the Lionshead district, including the design and construction of the I-70 underpass and the Red Sandstone Parking Structure and administrative fees. The following promissory notes payable from the Timber Ridge Enterprise Fund to the Town, which aggregate to $8,117,491 as of December 31, 2018 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 relating to the $1.9 million notes during 2018. •The $8 million promissory note bears interest at the rate of 1.5% per annum, with blended annual payments, and maturing December 1, 2033. Timber Ridge remitted $96,016 in interest to the Town during 2018 and, as of December 31, 2018, had accrued a total of $38,859 in interest payable to the Town relating to the $8 million note. Debt service requirements for the $8 million promissory note are as follows: Principal Interest Total 2019 372,704 90,467 463,171 2020 378,294 84,835 463,129 2021 383,969 79,118 463,087 2022 389,728 73,315 463,043 2023 395,574 67,425 462,999 2024-2028 2,068,674 245,640 2,314,314 2029-2033 2,228,549 84,566 2,313,115 Totals 6,217,492$ 725,366$ 6,942,859$ Transfers are used to 1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, 2) move unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and, 3) provide additional resources for current operations or debt service. All transfers either occur on a regular basis or are consistent with the purpose of the fund making the transfer. June 4, 2019 - Page 116 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D22 IV.Detailed Notes on all Funds (continued) 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. 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. The 2010A bonds retired on June 1, 2018. 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. As of October 1, 2015 the refundable credit decreased by 6.8% and as of October 1, 2016 reduced by 6.8%. 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. June 4, 2019 - Page 117 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D23 IV.Detailed Notes on all Funds (continued) 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, 2018 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 $3,651,414 at December 31, 2018 has not been reflected in the Town’s financial statements as the amount is partially insured by an independent insurance com pany and the amounts are not payable at termination. I. Long-term Liabilities – Refunded In prior years, the Town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the Town until retired; however, they are not included for the purposes of calculating debt limits of the Town. The amount of debt considered defeased cannot be readily determined as of December 31, 2018. J. Long-term Liabilities - Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2018 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Tax-Increment Bonds, Series 2010A 535,000$ -$ (535,000)$ -$ -$ Tax-Increment Bonds, Series 2010B 8,270,000 - - 8,270,000 555,000 Deferred amounts: Issuance premium 1,912 - (1,912) - - Capital Leases 60,589 - (29,701) 30,888 30,888 Compensated absences 1,593,970 - (29,161) 1,564,809 480,543 Total Governmental Activities Long-term Liabilities 10,461,471$ -$ (595,774)$ 9,865,697$ 1,066,431$ Business-type Activities: Compensated absences 91,060 - (17,102) 73,958 22,187 Total Business-type Activities Long-term Liabilities 91,060$ -$ (17,102)$ 73,958$ 22,187$ June 4, 2019 - Page 118 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D24 IV.Detailed Notes on all Funds (continued) J.Long-term Liabilities - Activity and Debt Service Schedules (continued) Debt service requirements at December 31, 2018 were as follows: Principal Interest Total Governmental Activities: 2019 555,000 501,432 1,056,432 2020 575,000 471,662 1,046,662 2021 595,000 438,458 1,033,458 2022 615,000 401,741 1,016,741 2023 640,000 363,658 1,003,658 2024-2028 3,615,000 1,171,030 4,786,030 2029-2030 1,675,000 112,704 1,787,704 Total Governmental Activities 8,270,000$ 3,460,685 11,730,685 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. K. Long-term Liabilities – Capital Leases In March 2017, the Town entered into a capital lease agreement for the purchase of a phone system. The total amount financed was $121,272 with implied interest of 4% per annum. The lease requires annual payments of $32,124 through 2019. Capital lease requirements at December 31, 2018 were as follows: L. Fund Balance Disclosures The Town classifies governmental fund balances as follows: Non-spendable – includes fund balance amounts inherently non-spendable since they represent inventories, prepaid items, and long-term portions of loans receivable. Spendable Fund Balance: Restricted – includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Principal Interest Total Governmental Activities: 2019 30,889 1,236 32,124 Total Governmental Activities 30,889$ 1,236 32,124 June 4, 2019 - Page 119 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D25 IV.Detailed Notes on all Funds (continued) L.Fund Balance Disclosures (continued) 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 30% 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. 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. June 4, 2019 - Page 120 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D26 V. Other Information (continued) A. Pension Plans (continued) 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, 2018 of $66,093,640 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 2018 covered payroll was $19,585,071 of which $17,714,513 was for permanent employees and $1,870,559 was for seasonal staff. Total 2018 payroll for all Town employees was $19,834,198. 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. June 4, 2019 - Page 121 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D27 V. Other Information (continued) B. Retirement Savings Plan – Deferred Compensation Plan – IRC 457 (continued) 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 $16,014,948 at December 31, 2018. The assets were invested in mutual funds, as previously described. Pursuant to the Town’s adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D. Risk Management The Town is exposed to various risks of loss related to workers’ compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. The Town offers health insurance to certain employees through the Town’s self-funded health plan with excess coverage underwritten by a commercial carrier. Liabilities for retained risk claims are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (“IBNR”). The following is a summary of the changes in the balances of the claims liability during 2018: 2018 Claims liability, beginning of year 335,000$ Current year claims 4,171,664 Claims payments (3,961,664) Claims liability, end of year 545,000$ June 4, 2019 - Page 122 of 242 Town of Vail, Colorado Notes to the Financial Statements December 31, 2018 (Continued) D28 V. Other Information (continued) 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, 2018. 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, 2018. 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. June 4, 2019 - Page 123 of 242 REQUIRED SUPPLEMENTARY INFORMATION June 4, 2019 - Page 124 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: General sales taxes 16,149,000 16,149,000 16,149,000 - 15,831,698 Property and ownership taxes 5,300,000 5,300,000 5,313,730 13,730 4,940,193 Ski area lift ticket admissions tax 5,212,600 4,944,200 5,103,480 159,280 4,708,765 Franchise tax 1,107,877 1,107,877 1,124,577 16,700 1,088,493 Penalties and interest on delinquent taxes 43,260 43,260 34,101 (9,159) 20,003 Total - Taxes 27,812,737 27,544,337 27,724,888 180,551 26,589,152 Permits and Licenses: Construction fees 954,545 1,754,545 1,805,961 51,416 1,001,192 Contractors' licenses 59,646 59,646 50,225 (9,421) 49,526 Other permits and licenses 733,596 1,138,596 1,345,114 206,518 713,022 Total - Permits and Licenses 1,747,787 2,952,787 3,201,300 248,513 1,763,740 Intergovernmental: County sales tax 833,472 833,472 917,992 84,520 836,588 County road and bridge 720,000 720,000 706,903 (13,097) 655,534 Additional motor vehicle registration fees 26,000 26,000 26,753 753 26,856 Cigarette tax 75,000 75,000 64,999 (10,001) 66,769 Highway users tax 224,000 224,000 265,476 41,476 217,761 Other county sources 92,500 92,500 87,500 (5,000) 87,500 Other state sources - 592,893 581,343 (11,550) 415,235 Federal sources 10,000 10,000 - (10,000) 2,090 Total - Intergovernmental 1,980,972 2,573,865 2,650,966 77,101 2,308,333 Charges for Services: Management fees - Vail Local Marketing District 125,000 125,000 145,000 20,000 120,000 Internal service charge 497,176 539,494 596,679 57,185 512,438 Out of district fire response 52,000 52,000 25,485 (26,515) 17,296 Alarm monitoring fees 25,056 25,056 24,969 (87) 21,261 Parking 5,388,000 5,147,900 6,416,013 1,268,113 4,902,756 Fines and forfeitures 254,156 254,156 211,101 (43,055) 258,728 Rents 1,064,137 1,064,137 1,064,570 433 1,027,199 Other charges, services, and sales 223,032 223,032 298,986 75,954 290,369 Total - Charges for Services 7,628,557 7,430,775 8,782,803 1,352,028 7,150,047 Other Revenues: Earnings on investments 131,000 131,000 436,425 305,425 208,432 Miscellaneous 180,000 202,588 191,826 (10,762) 247,785 Total - Other Revenues 311,000 333,588 628,251 294,663 456,217 Total Revenues 39,481,053 40,835,352 42,988,208 2,152,856 38,267,489 2018 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 With Comparative Actual Amounts For the Year Ended December 31, 2017 The accompanying notes are an integral part of these financial statements. E1 (Continued) June 4, 2019 - Page 125 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Expenditures: General Government: Town officials 1,684,638 1,662,638 1,345,488 317,150 1,280,282 Administrative 5,176,332 5,241,640 4,792,466 449,174 4,511,388 Community development 2,595,184 2,627,734 1,812,892 814,842 1,607,169 Total - General Government 9,456,154 9,532,012 7,950,846 1,581,166 7,398,839 Public Safety: Police department 6,078,475 6,192,097 5,981,902 210,195 5,734,473 Fire department 4,684,374 5,094,860 4,741,684 353,176 4,451,108 Total - Public Safety 10,762,849 11,286,957 10,723,586 563,371 10,185,581 Public Works and Transportation: Highways and streets 5,218,444 5,266,499 4,748,503 517,996 4,423,028 Transportation 5,249,412 5,259,412 5,363,851 (104,439) 5,216,267 Parking operations 1,433,571 1,593,571 1,613,448 (19,877) 1,405,212 Facility maintenance 3,890,982 3,905,982 3,609,024 296,958 3,713,247 Total - Public Works and Transportation 15,792,409 16,025,464 15,334,826 690,638 14,757,754 Culture and Recreation: Special recreation facilities 288,150 288,150 278,918 9,232 288,044 Library 922,123 942,511 955,056 (12,545) 948,519 Total - Culture and Recreation 1,210,273 1,230,661 1,233,974 (3,313) 1,236,563 Economic Development: Contributions, marketing, and special events 2,708,475 1,050,287 988,800 61,487 2,727,281 Total - Economic Development 2,708,475 1,050,287 988,800 61,487 2,727,281 Total Expenditures 39,930,160 39,125,381 36,232,032 2,893,349 36,306,018 Excess (Deficiency) of Revenues Over Expenditures (449,107) 1,709,971 6,756,176 5,046,205 1,961,471 Other Financing Sources (Uses): Sale of assets - - 28,753 28,753 27,600 Transfers out - (2,186,120) (2,186,120) -- Total Other Financing Sources (Uses)- (2,186,120) (2,157,367) 28,753 27,600 Net Change in Fund Balance (449,107) (476,149) 4,598,809 5,074,958 1,989,071 Fund Balance - January 1 23,619,175 29,289,331 29,289,331 - 27,300,260 Fund Balance - December 31 23,170,068 28,813,182 33,888,140 5,074,958 29,289,331 (Continued) 2018 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 With Comparative Actual Amounts For the Year Ended December 31, 2017 The accompanying notes are an integral part of these financial statements. E2 June 4, 2019 - Page 126 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Real estate transfer tax 6,100,000 6,430,000 7,649,013 1,219,013 6,313,610 Intergovernmental Revenue: Lottery revenue 20,000 20,000 27,774 7,774 27,004 Other county revenue - 215,847 241,091 25,244 20,000 Other state revenue - - 700,000 700,000 7,518 Total - Intergovernmental Revenue 20,000 235,847 968,865 733,018 54,522 Charges for Services: Recreation amenities fee 10,000 10,000 11,146 1,146 27,397 Land lease to Vail Recreation District 165,000 165,000 141,605 (23,395) 141,605 Total - Charges for Services 175,000 175,000 152,751 (22,249) 169,002 Other: Project reimbursements - 19,684 32,598 12,914 122,665 Donations - 182,457 50,188 (132,269) 19,257 Interest on investments 19,059 19,059 157,216 138,157 79,119 Other 30,000 38,700 8,792 (29,908) 17,480 Total - Other 49,059 259,900 248,794 (11,106) 238,521 Total Revenues 6,344,059 7,100,747 9,019,423 1,918,676 6,775,655 Expenditures: Culture and Recreation: Project management 305,000 321,500 382,451 (60,951) 315,681 Park maintenance 1,669,395 1,705,895 1,485,754 220,141 1,506,457 Environmental sustainability 489,465 623,263 467,994 155,269 473,331 Art in public places 111,201 111,201 112,700 (1,499) 107,170 Total - Culture and Recreation 2,575,061 2,761,859 2,448,899 312,960 2,402,639 Public Works: Capital projects 6,232,384 14,322,838 4,331,417 9,991,421 4,244,957 Public Safety Fire suppression 277,248 271,918 231,468 40,450 241,430 Total Expenditures 9,084,693 17,356,615 7,011,784 10,344,831 6,889,026 Excess (Deficiency) of Revenues Over Expenditures (2,740,634) (10,255,868) 2,007,639 12,263,507 (113,371) Fund Balance - January 1 3,710,322 11,142,914 11,142,914 -11,256,285 Fund Balance - December 31 969,688 887,046 13,150,553 12,263,507 11,142,914 With Comparative Actual Amounts For the Year Ended December 31, 2017 2018 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. E3 June 4, 2019 - Page 127 of 242 2017 Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Permits and Licenses: Business licenses 380,000 275,000 337,602 62,602 384,253 Other: Interest on investments 1,500 1,500 4,718 3,218 3,115 Total Revenues 381,500 276,500 342,320 65,820 387,368 Expenditures: Economic Development: Special Events - 1,699,140 1,680,935 18,205 - Commission on Special Events 360,000 846,980 850,990 (4,010) 304,000 Administration fee 20,000 20,000 16,880 3,120 19,214 Total Expenditures 380,000 2,566,120 2,548,805 17,315 323,214 Excess (Deficiency) of Revenues Over Expenditures 1,500 (2,289,620) (2,206,485) 83,135 64,154 Other Financing Sources (Uses): Transfers in - 2,186,120 2,186,120 - - Total Other Financing Sources (Uses)- 2,186,120 2,186,120 - - Net Change in Fund Balance 1,500 (103,500) (20,365) 83,135 64,154 Fund Balance - January 1 309,952 323,606 323,606 - 259,452 Fund Balance - December 31 311,452 220,106 303,241 83,135 323,606 With Comparative Actual Amounts For the Year Ended December 31, 2017 2018 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. E4 June 4, 2019 - Page 128 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Lodging tax 3,200,000 3,200,000 3,489,289 289,289 3,303,027 Other: Interest on investments 2,000 2,000 1,397 (603) 147 Total - Other 2,000 2,000 1,397 (603) 147 Total Revenues 3,202,000 3,202,000 3,490,686 288,686 3,303,174 Expenditures: Economic Development: Destination 1,417,600 1,451,600 1,441,688 9,912 1,602,758 Front Range 222,000 212,000 189,401 22,599 265,230 Groups and meetings 756,375 756,375 701,231 55,144 670,198 Marketing 493,200 469,200 455,477 13,723 578,139 Special events 25,000 225,000 225,000 - 3,990 Purchased services 485,825 485,825 467,733 18,092 513,296 Total Expenditures 3,400,000 3,600,000 3,480,530 119,470 3,633,611 Excess (Deficiency) of Revenues Over Expenditures (198,000) (398,000) 10,156 408,156 (330,437) Fund Balance - January 1 1,142,734 1,260,297 1,260,297 - 1,590,734 Fund Balance - December 31 944,734 862,297 1,270,453 408,156 1,260,297 2018 With Comparative Actual Amounts For the Year Ended December 31, 2017 Town of Vail, Colorado Special Revenue Funds Vail Local Marketing District Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. E5 June 4, 2019 - Page 129 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: Property tax 4,413,000 5,540,000 5,475,660 (64,340) 4,514,083 Other: Interest on investments 1,745 1,745 4,045 2,300 3,272 Interest subsidy (Build America Bonds)167,444 167,444 169,059 1,615 168,427 Total Revenues 4,582,189 5,709,189 5,648,764 (60,425) 4,685,782 Expenditures: Economic Development: Administration 77,460 100,000 98,604 1,396 80,715 Fiscal agent fees 2,200 2,800 2,420 380 2,420 Treasurer's fees 132,390 166,200 164,416 1,784 135,427 Professional fees 10,000 10,000 2,895 7,105 8,087 Vail Square Metro District 523,800 523,800 524,143 (343) 464,039 Total Economic Development 745,850 802,800 792,478 10,322 690,688 Debt Service: Principal 535,000 535,000 535,000 - 515,000 Interest 526,753 526,753 526,753 - 547,753 Total Debt Service 1,061,753 1,061,753 1,061,753 - 1,062,753 Total Expenditures 1,807,603 1,864,553 1,854,231 10,322 1,753,441 Excess (Deficiency) of Revenues Over Expenditures 2,774,586 3,844,636 3,794,533 (50,103) 2,932,341 Other Financing Sources (Uses): Transfers out (2,156,000) (5,202,023) (4,599,998) 602,025 (4,179,718) Total Other Financing Sources (Uses)(2,156,000) (5,202,023) (4,599,998) 602,025 (4,179,718) Net Change in Fund Balance 618,586 (1,357,387) (805,465) 551,922 (1,247,377) Fund Balance - January 1 1,123,121 3,064,772 3,064,772 - 4,312,149 Fund Balance - December 31 1,741,707 1,707,385 2,259,307 551,922 3,064,772 With Comparative Actual Amounts For the Year Ended December 31, 2017 2018 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. E6 June 4, 2019 - Page 130 of 242 SUPPLEMENTARY INFORMATION June 4, 2019 - Page 131 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax 9,897,000 9,897,000 12,046,899 2,149,899 10,317,753 Construction use tax 1,975,900 3,600,000 3,689,131 89,131 1,740,754 Total - Taxes 11,872,900 13,497,000 15,736,030 2,239,030 12,058,507 Intergovernmental: County revenues -260,302 197,523 (62,779) - State grants -83,691 747,710 664,019 3,402 Federal grants --1,653 1,653 60,293 Total - Intergovernmental -343,993 946,886 602,893 63,695 Charges for Services: Leases - Vail Commons 159,135 159,135 159,135 -159,135 Total - Charges for Services 159,135 159,135 159,135 -159,135 Other: Interest on investments 528,142 528,142 562,924 34,782 355,034 Project reimbursements/shared costs 5,843,802 6,989,416 6,727,757 (261,659) 206,306 Construction fees --259,565 259,565 569,327 Workforce housing sales and other 16,742,000 17,693,900 17,758,512 64,612 - Total - Other 23,113,944 25,211,458 25,308,758 97,300 1,130,667 Total Revenues 35,145,979 39,211,586 42,150,810 2,939,224 13,412,004 Expenditures: Public Works: Capital lease principal --29,701 29,701 60,683 Interest --2,424 2,424 3,565 Capital projects and acquisition 25,983,812 54,367,459 32,634,757 21,732,702 29,452,457 Total - Public Works 25,983,812 54,367,459 32,666,882 21,764,827 29,516,705 Excess (Deficiency) of Revenues Over Expenditures 9,162,167 (15,155,873) 9,483,928 24,704,051 (16,104,701) Other Financing Sources (Uses): Transfers in 2,156,000 5,202,023 4,599,998 (602,025) 4,179,718 Transfers (out)---- (150,000) Total Other Financing Sources (Uses)2,156,000 5,202,023 4,599,998 (602,025) 4,029,718 Net Change in Fund Balance 11,318,167 (9,953,850) 14,083,926 24,102,026 (12,074,983) Fund Balance - January 1 5,057,591 32,761,887 32,761,887 - 44,836,870 Fund Balance - December 31 16,375,758 22,808,037 46,845,813 24,102,026 32,761,887 With Comparative Actual Amounts For the Year Ended December 31, 2017 2018 Town of Vail, Colorado Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. F1 June 4, 2019 - Page 132 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Rent 1,471,442 1,471,442 1,452,310 (19,132) 1,359,914 Ground lease - - 155,149 155,149 155,149 Other 23,487 23,487 12,906 (10,581) 22,425 Total Operating Revenues 1,494,929 1,494,929 1,620,365 125,436 1,537,488 Operating Expenses: Operating expenses 539,545 539,545 514,238 25,307 503,646 Capital outlay 280,701 288,701 79,991 208,710 325,715 Total Operating Expenses 820,246 828,246 594,229 234,017 829,361 Operating Income (Loss)674,683 666,683 1,026,136 359,453 708,127 Non-operating Revenues (Expenses): Interest on investments 1,866 1,866 12,008 10,142 1,230 Interest expense (122,223) (122,223) (122,221) 2 (127,723) Loan principal repayment to Capital Projects Fund (367,196) (367,196) (367,196) - (361,769) Total Non-operating Revenue (Expenses)(487,553) (487,553) (477,409) 10,144 (488,262) Change in Net Position - Budget Basis 187,130 179,130 548,727 369,597 219,865 Reconciliation to GAAP Basis: Adjustments: Loan principal repayment to Capital Projects Fund 367,196 361,769 Depreciation (345,762) (337,190) Capitalized assets 79,991 325,715 Total Adjustments 101,425 350,294 Change in Net Position - GAAP Basis 650,152 570,159 2018 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, 2018 With Comparative Actual Amounts For the Year Ended December 31, 2017 The accompanying notes are an integral part of these financial statements. F2 June 4, 2019 - Page 133 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Dispatch service fee 659,608 659,608 659,608 - 659,571 Dispatching contracts 1,279,892 1,279,892 1,277,282 (2,610) 1,231,642 Other charges - - 13,622 13,622 19,994 Total Operating Revenues 1,939,500 1,939,500 1,950,512 11,012 1,911,207 Operating Expenses: Public Safety: Salaries and benefits 2,149,392 2,154,373 1,960,106 194,267 2,010,382 Operating expenses 630,069 521,604 468,263 53,341 547,047 Capital outlay - 669,500 432,221 237,279 304,070 Total Operating Expenses 2,779,461 3,345,477 2,860,590 484,887 2,861,499 Operating (Loss) - Budget Basis (839,961) (1,405,977) (910,078) 495,899 (950,292) Non-operating Revenues: Operating grant - E-911 Board 762,176 762,176 778,562 16,386 776,809 Other operating grants - 368,981 403,000 34,019 - Earnings on investments 6,050 6,050 22,678 16,628 7,511 Total Non-operating Revenues 768,226 1,137,207 1,204,240 67,033 784,320 Income (Loss) Before Transfers (71,735) (268,770) 294,162 562,932 (165,972) Transfers In - - - - 150,000 Change in Net Position - Budget Basis (71,735) (268,770) 294,162 562,932 (15,972) Adjustments: Change in compensated absences 17,101 (12,962) Depreciation (149,924) (154,561) Capitalized assets 432,221 304,070 Total Adjustments 299,398 136,547 Change in Net Position - GAAP Basis 593,560 120,575 With Comparative Actual Amounts For the Year Ended December 31, 2017 2018 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, 2018 The accompanying notes are an integral part of these financial statements. F3 June 4, 2019 - Page 134 of 242 2017 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Operating charges 2,447,151 2,447,151 2,383,188 (63,963) 2,331,493 Replacement charges 756,982 756,982 712,767 (44,215) 694,828 Total - Charges and Fees 3,204,133 3,204,133 3,095,955 (108,178) 3,026,321 Other: Insurance reimbursements 10,000 10,000 9,128 (872) 20,304 Other -- 20,733 20,733 18,354 Total - Other 10,000 10,000 29,861 19,861 38,658 Total Operating Revenues 3,214,133 3,214,133 3,125,816 (88,317) 3,064,979 Operating Expenses: Public Works: Vehicle maintenance and fuel 2,599,743 2,704,609 2,410,867 293,742 2,406,522 Capital outlay 703,700 847,200 733,115 114,085 1,091,774 Total Operating Expenses 3,303,443 3,551,809 3,143,982 407,827 3,498,296 Operating Income (Loss) - Budget Basis (89,310) (337,676) (18,166) 319,510 (433,317) Non-operating Revenues: Earnings on investments 7,500 7,500 20,568 13,068 11,683 Proceeds from sale of assets 130,483 130,483 99,015 (31,468) 220,303 Total Non-operating Revenues:137,983 137,983 119,583 (18,400) 231,986 Change in Net Position - Budget Basis 48,673 (199,693) 101,417 301,110 (201,331) Reconciliation to GAAP Basis: Adjustments: Contributed from other funds 265,882 674,695 Net book value of disposed assets (14,313) (30,066) Depreciation (845,214) (794,507) Change in accrued compensated absences 10,440 1,919 Capitalized assets 733,115 1,091,774 Total Adjustments 149,910 943,815 Change in Net Position - GAAP Basis 251,327 742,484 With Comparative Actual Amounts For the Year Ended December 31, 2017 2018 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, 2018 The accompanying notes are an integral part of these financial statements. F4 June 4, 2019 - Page 135 of 242 2017 Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Insurance premiums 4,085,000 4,085,000 3,950,000 (135,000) 3,700,000 Insurance premiums - Employee contributions 715,000 715,000 773,461 58,461 729,490 Total Operating Revenues 4,800,000 4,800,000 4,723,461 (76,539) 4,429,490 Operating Expenses: General Government: Health claims 4,003,908 4,003,908 3,961,664 42,244 3,684,452 Premiums 897,141 897,141 889,778 7,363 744,670 Administrative fees 38,300 38,300 20,594 17,706 20,000 Total Operating Expenses 4,939,349 4,939,349 4,872,036 67,313 4,449,122 Operating Income (Loss)(139,349) (139,349) (148,575) (9,226) (19,632) Non-operating Revenues: Earnings on investments 12,000 12,000 45,396 33,396 25,484 Change in Net Position (127,349) (127,349) (103,179) 24,170 5,852 With Comparative Actual Amounts For the Year Ended December 31, 2017 2018 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, 2018 The accompanying notes are an integral part of these financial statements. F5 June 4, 2019 - Page 136 of 242 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments 1,793,764 3,883,020 5,676,784 Accounts receivable, net of allowance for uncollectibles 78,137 7,963 86,100 Inventory 252,228 - 252,228 Prepaid expenses - 500 500 Total Current Assets 2,124,129 3,891,483 6,015,612 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation 5,268,933 - 5,268,933 Total Assets 7,393,062 3,891,483 11,284,545 Liabilities: Current Liabilities: Accounts payable 62,210 545,000 607,210 Accrued salaries and wages 15,538 - 15,538 Current portion of compensated absences 13,815 - 13,815 Total Current Liabilities 91,563 545,000 636,563 Non-current Liabilities: Compensated absences, net of current portion 32,234 - 32,234 Total Liabilities 123,797 545,000 668,797 Net Position: Invested in capital assets, net of related debt 5,268,933 - 5,268,933 Unrestricted 2,000,332 3,346,483 5,346,815 Total Net Position 7,269,265 3,346,483 10,615,748 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Position December 31, 2018 The accompanying notes are an integral part of these financial statements. F6 June 4, 2019 - Page 137 of 242 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal 3,095,955 3,950,000 7,045,955 Charges for services - External - 773,461 773,461 Insurance reimbursements 9,128 - 9,128 Other 20,733 - 20,733 Total Operating Revenues 3,125,816 4,723,461 7,849,277 Operating Expenses: Operations 2,400,427 20,594 2,421,021 Health claims and premiums - 4,851,442 4,851,442 Depreciation 845,214 - 845,214 Total Operating Expenses 3,245,641 4,872,036 8,117,677 Operating Income (Loss)(119,825) (148,575) (268,400) Non-operating Revenues (Expenses): Gain (loss) on disposal of assets 84,702 - 84,702 Investment income 20,568 45,396 65,964 Total Non-operating Revenues (Expenses) 105,270 45,396 150,666 Income (Loss) Before Transfers and Capital Contributions (14,555) (103,179) (117,734) Capital Contributions, Net 265,882 - 265,882 Change in Net Position 251,327 (103,179) 148,148 Net Position - January 1 7,017,938 3,449,662 10,467,600 Net Position - December 31 7,269,265 3,346,483 10,615,748 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. F7 June 4, 2019 - Page 138 of 242 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 3,095,955 3,950,000 7,045,955 Other cash receipts 29,915 769,001 798,916 Cash paid for goods and services (1,277,520) (4,662,143) (5,939,663) Cash paid to employees (1,100,890) - (1,100,890) Net Cash Provided (Used) by Operating Activities 747,460 56,857 804,317 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 23,020 - 23,020 Acquisition and construction of capital assets (733,114) - (733,114) Net Cash Provided (Used) by Capital and Related Financing Activities (710,094) - (710,094) Cash Flows From Investing Activities: Interest on Investments 20,568 45,396 65,964 Net Cash Provided (Used) by Investing Activities 20,568 45,396 65,964 Net Change in Cash and Cash Equivalents 57,934 102,253 160,187 Cash and Cash Equivalents - Beginning 1,735,830 3,780,767 5,516,597 Cash and Cash Equivalents - Ending 1,793,764 3,883,020 5,676,784 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(119,825) (148,575) (268,400) Adjustments: Depreciation 845,214 - 845,214 (Increase) decrease in accounts receivable 57 (4,461) (4,404) (Increase) decrease in inventory 27,385 - 27,385 Increase (decrease) in accounts payable 4,885 209,893 214,778 Increase (decrease) in accrued wages and benefits (10,256) - (10,256) Total Adjustments 867,285 205,432 1,072,717 Net Cash Provided (Used) by Operating Activities 747,460 56,857 804,317 Schedule of Non-cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund 265,882 - 265,882 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. F8 June 4, 2019 - Page 139 of 242 2017 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CBI010 Fire Infrastructure / Main Vail Fire Stn - - - 571,925 CBI021 Donovan Park Pavilion 15,000 - 15,000 - CBI025 Colorado Ski Museum Renovation 500,000 500,000 - - CBI025 Welcome Center Capital Maintiance 250,000 121,154 128,846 - CBI027 Public Works Remodel 150,000 136,594 13,406 - CEP002 Hybrid Bus Battery Replacement 431,772 43,056 388,716 - CEP004 Replace Buses 3,229,587 2,964,563 265,024 3,373,913 CEP005 Hardware Purchases 150,000 86,074 63,926 140,346 CEP006 Radio Replacement 860,340 738,844 121,496 18,865 CEP007 Phone System Upgrade 77,220 32,243 44,977 13,927 CEP008 Parking Entry System 93,037 - 93,037 16,163 CEP010 Network Upgrades 380,000 366,857 13,143 25,953 CEP011 Document Imaging 30,000 29,018 982 28,683 CEP018 Web and E-commerce 12,000 4,311 7,689 6,403 CEP019 Computer-Aided Dispatch (CAD/RMS)97,768 44,906 52,862 76,232 CEP022 Audio Visual 158,000 164,038 (6,038) 41,608 CEP026 Fire Equipment 210,000 165,100 44,900 - CEP030 Vehicle expansion 265,000 251,309 13,691 687,536 CEP031 Software Licensing 217,000 34,134 182,867 45,759 CEP033 Data Centers / Computer Rooms 1,209,036 1,009,587 199,449 - CEP036 Business Systems 338,700 196,366 142,334 27,125 CEP038 Police Equipment 121,791 101,696 20,095 10,395 CEP040 Transit Center Generator - - - 14,564 CEP045 Resot Application - - - 155,817 CEP046 Library Self-Check System Updates 38,000 36,135 1,865 - CHF001 Buy-Down Housing 429,049 261,976 167,073 328,588 CHF002 Solar Vail 4,225,000 - 4,225,000 - CHF003 Vail InDEED 2,500,000 1,659,726 840,274 - CHF004 Employee Housing 312,000 309,636 2,364 - CHP001 Buy-Down Program - - - 438 CHP020 Chamonix Housing Development 230,322 71,872 158,450 532,226 CHP022 Chamonix- Vail Homes 4,083,151 2,285,755 1,797,396 15,252,345 CMP007 Transportation Master Plan 233,482 - 233,482 27,754 CMT003 Bus Shelter Replacement Program 118,825 27,048 91,777 1,787 CMT004 Capital Street Maintenance 1,220,000 834,558 385,442 1,212,105 CMT005 Facility Capital 576,000 299,338 276,662 616,072 CMT007 Parking Structure Maintenance 695,000 490,086 204,914 441,110 CMT009 Energy Enhacements 87,900 14,052 73,848 5,001 CMT010 Underground Utilities 2,188,066 1,491,391 696,675 203,872 CMT016 Public Works Wash Down 246,967 61,793 185,174 - CMT017 Slifer Plaza Fountain and Storm Sewer 4,377,119 2,821,757 1,555,362 78,202 CMT018 Public Works Shop Building Maintenance 300,000 - - - COT002 Street Light Improvement Program 147,056 64,919 82,137 18,200 COT004 Fiber-Optics in Buildings 62,000 26,620 35,380 12,825 COT015 Red Sandstone Parking Garage 14,662,953 12,095,586 2,567,367 371,959 COT022 Municipal Complex Redevelopment 300,643 - 300,643 58,687 COT024 West Forest Road Bridge Repiar 347,497 - 347,497 - COT025 Kinnickinnick(West) Bridge Repair 341,637 - 341,637 - COT026 Vail Memorial Park Capital Contribution - - - 50,000 COT027 Children's Garden of Learning Boiler Replacement 12,800 18,574 - - CSC016 Guest Services Enhancements 647,684 503,922 143,762 308,429 CSC017 Pedestrian Safety Enhacements 1,500,000 20,884 1,479,116 348,453 CSC018 East Meadow Drive Snowmelt 800,000 471,033 328,967 - CSC019 Transit Stop Improvements 393,000 280,404 112,596 - CSC020 West Vail Interchance Sidewalk Improvements 325,000 - 325,000 - CSR007 Neighborhood Road Reconstruction 54,740 - 54,740 5,750 CSR008 Neighborhood Bridges 1,554,106 21,564 1,532,542 31,502 CSR009 Frontage Road Enhacements VVMC 202,229 181,574 20,655 252,771 CSR010 West Vail Roundabout Repair 350,000 286,630 - - VRA010 I-70 Underpass 492,990 - 492,990 3,395,597 VRA013 East Lionshead Circle Pathway 93,560 - 93,560 6,440 VRA014 Dobson Plaza 100,000 - 100,000 - VRA015 Public Art-Lionshead - - - 173,250 VRA016 Vantage Point Walkway - - - 159,811 VRA017 Lionshead Express Bus Stop Improvements 657,000 656,308 692 - VRA018 Lionshead Parking Structure Landscape Renovations 100,000 69,709 30,291 - VRA019 Vail Spa Heated Walkway 250,000 - 250,000 - VRA020 Heated Walk- Lionshead to First Chair 315,432 314,185 1,248 6,069 Total 54,367,459 32,666,882 21,342,981 29,452,457 2018 Town of Vail, Colorado Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 With Comparative Actual Amounts For the Year Ended December 31, 2017 The accompanying notes are an integral part of these financial statements. F9 June 4, 2019 - Page 140 of 242 2017 Variance Project Final Positive Number Project Name Budget Actual (Negative)Actual CCF001 Golf Clubhouse Redevelopment 118,729 65,794 52,935 959,183 CCF002 Ford Park Fields Redevelopment 262,620 142,396 120,224 559,205 RFP005 Alpine Gardens Pledge 69,700 69,700 - 69,700 RFP007 Alpine Gardens Contribution 38,433 38,768 (335) 10,567 RFP017 Ford Park Portal Improvements 23,867 21,328 2,539 306,836 RMT001 Recreation Path Maintenance 110,986 14,347 96,639 139,302 RMT002 Tree Maintenance 65,000 30,403 34,598 103,898 RMT005 Street Furniture - Streetscape 25,000 17,767 7,233 56,134 RMT006 Eagle River Watershed Programs 45,450 45,450 - 59,450 RMT009 Park/Playground Capital Maintenance 236,076 213,959 22,117 73,518 RMT016 Ford Park / Tennis Center Improvements 157,931 - 157,931 52,800 RMT018 Dobson Ice Arena 471,311 - 471,311 5,773 RMT019 Gymnastics Center 52,089 14,496 37,593 9,500 RMT022 Recreation Enhancement Account (VRD)305,094 - 305,094 - RMT024 Athletic Fields 35,523 - 35,523 - RMT025 Nature Center 262,740 228,790 33,950 22,514 RMT027 Golf Course - Other Improvements 1,007,141 735,745 271,396 - RMT028 Flood Repairs 2,138,515 14,259 2,124,256 67,970 RMT029 Glen Lyon Recreation Path Bridge -- - 118,637 RMT030 East Vail Interchange Improvements 1,423,960 630,406 793,554 64,847 RMT032 Intermountain Fuels Reduction 74,328 32,186 42,142 670,328 RMT033 North Bike Path Reconstruction 235,000 - - - RMT034 Forest Health VHF Radios 37,193 35,668 - - RFA001 Property Acquisition 150,000 152,687 - - RPD015 Booth Creek Park Redevelopment 40,000 - 40,000 75,920 RPD016 Donovan Park Master Plan -- - 38,747 RPD017 Chalet Road Sport Courts 38,463 - 38,463 1,537 RPI007 Streamtract Education 199,297 150,889 48,408 148,792 RPI008 East Vail Water Quality TAPS 1,124,111 1,034,746 89,365 - RPI009 Big Horn Park Improvements 13,208 - 13,208 211,792 RPI010 Water Quality Infrastructure 2,512,181 35,014 2,477,167 87,061 RPI011 Streambank Restoration 703,222 79,886 623,336 142,431 RPI012 Private Streambank 101,000 35,917 65,083 12,764 RPI013 Stephen's Park Improvements 150,000 - - - RPT020 Open Lands 404,624 38,197 366,427 72,568 RPT021 Soft Surface Trails 168,109 - - 31,892 RPT022 Adopt-a-Trail -- - 5,000 RPT023 Gore Valley Trail Realignment 450,000 271,625 - - RRT001 Public Art 623,342 139,534 483,808 34,264 RRT006 Public Art - Winterfest 23,595 23,594 1 32,028 RRT007 Public Art - Pete Seibert Memorial 300,000 - - - RSS006 Vail Transit Center Landscape 125,000 17,867 107,133 - Total 14,322,838 4,331,417 8,961,099 4,244,958 2018 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, 2018 With Comparative Actual Amounts For the Year Ended December 31, 2017 The accompanying notes are an integral part of these financial statements. F10 June 4, 2019 - Page 141 of 242 LOCAL HIGHWAY FINANCE REPORT June 4, 2019 - Page 142 of 242 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36 City or County: Vail YEAR ENDING : December 2018 This Information From The Records Of Town of Vail: Prepared By: Carlie Smith Phone:970-479-2118 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)4,619,158 a. Motor Fuel (from Item I.A.5.)2. Maintenance:2,311,717 b. Motor Vehicle (from Item I.B.5.)3. Road and street services: c. Total (a.+b.)a. Traffic control operations 347,272 2. General fund appropriations 2,153,272 b. Snow and ice removal 1,040,232 3. Other local imposts (from page 2)986,828 c. Other 4. Miscellaneous local receipts (from page 2)-d. Total (a. through c.)1,387,503 5. Transfers from toll facilities 4. General administration & miscellaneous 428,447 6. Proceeds of sale of bonds and notes:5. Highway law enforcement and safety 1,501,302 a. Bonds - Original Issues 6. Total (1 through 5)10,248,128 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)-a. Interest 7. Total (1 through 6)3,140,100 b. Redemption B. Private Contributions 6,815,471 c. Total (a. + b.)- C. Receipts from State government 2. Notes: (from page 2)292,229 a. Interest D. Receipts from Federal Government b. Redemption (from page 2)-c. Total (a. + b.)- E. Total receipts (A.7 + B + C + D)10,247,800 3. Total (1.c + 2.c)- C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D)10,248,128 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)- 1. Bonds (Refunding Portion) B. Notes (Total)- A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation - 10,247,800 10,248,128 - (328) Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 AND STREET PURPOSES ITEM ITEM (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD F11 June 4, 2019 - Page 143 of 242 STATE: Colorado YEAR ENDING (mm/yy): December 2018 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts:b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 986,828 g. Other Misc. Receipts 6. Total (1. through 5.)986,828 h. Other c. Total (a. + b.)986,828 i. Total (a. through h.)- (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 265,476 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds:a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 26,753 d. Federal Transit Admin d. Other (Specify)e. U.S. Corps of Engineers e. Other (Specify)f. Other Federal f. Total (a. through e.)26,753 g. Total (a. through f.)- 4. Total (1. + 2. + 3.f)292,229 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a) (b) (c) A.1. Capital outlay: a. Right-Of-Way Costs - - b. Engineering Costs 59,293 59,293 c. Construction: (1). New Facilities - (2). Capacity Improvements - (3). System Preservation 4,559,865 4,559,865 (5). Total Construction (1) + (2) + (3) + (4)-4,559,865 4,559,865 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)-4,619,158 4,619,158 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM ITEM ITEM ITEM F12 June 4, 2019 - Page 144 of 242 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE June 4, 2019 - Page 145 of 242 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, II and III December 31, 2018 2013 2014 2015 2017 2018 Pledged Revenues 3,373,916 3,541,546 3,673,030 4,221,743 5,124,621 Valuation Valuation Total Assessed Percent Allocable Allocable Levy Year Collection Year Valuation Change to Base to Increment 2013 2014 162,091,770 -2.5% 90,762,320 71,329,450 2014 2015 175,857,330 8.5% 99,317,520 76,539,810 2015 2016 178,203,030 1.3% 99,314,850 78,888,180 2016 2017 212,494,370 19.2% 115,130,090 97,364,280 2017 2018 216,549,720 1.9% 115,130,090 101,419,630 Tax Areas 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 202 47.0140 45.2100 51.1300 51.6980 51.951 203 45.4720 44.1460 49.7500 50.3960 50.648 204 60.8760 55.7010 61.4300 60.8500 60.025 206 47.0140 45.5210 51.1300 51.6980 51.951 207 87.0140 80.5210 86.1300 86.6980 86.951 208 72.0140 67.3960 73.0100 73.5730 73.826 216 - - - - - 225 - - - - - TABLE I Vail Reinvestment Authority History of Pledged Revenues TABLE II Vail Reinvestment Authority History of Assessed Valuations TABLE III Mill Levies Affecting Property Owners within the Vail Reinvestment Authority Plan Area G1 June 4, 2019 - Page 146 of 242 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables IV and V December 31, 2018 2018 Preliminary Percentage of Total Taxpayer Name Assessed Valuation Assessed Valuation Diamondrock LLC 41,325,270 19.1% Arrrabelle at Vail Square LLC 12,706,140 5.9% Ritz-Carlton Development Co Inc 10,274,320 4.7% Lion Vail LLC 9,705,250 4.5% Vail Corp 4,964,690 2.3% A Belle Vail Co LLC 2,916,700 1.3% Lazier Lionshead LLC 2,403,760 1.1% SOHO Development LLC 1,870,590 0.9% Blue Ice 21 LLC 1,557,780 0.7% Landmark Commercial Dev Co 1,353,730 0.6% 484 Arrabelle LLC 1,028,040 0.5% Total 216,449,720 Total Percentage of Total Class Assessed Valuation Assessed Valuation Residential 135,489,420 63% Commercial 79,841,890 37% Vacant 949,920 0% State assessed 168,490 0% Total 216,449,720 100% 2018 Preliminary Assessed Valuation of Classes of Property in the Authority TABLE V Largest Taxpayers in the Authority TABLE IV G2 June 4, 2019 - Page 147 of 242 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table VI December 31, 2018 2014 2015 2016 2017 2018 Revenues: Other: Property tax 3,662,130 3,837,261 3,959,506 4,514,083 5,475,660 Interest on investments 1,219 937 2,062 3,273 4,045 Interest subsidy (Build America Bonds) 167,524 167,896 168,246 168,427 169,059 Total Revenues 3,830,873 4,006,094 4,129,814 4,685,783 5,648,764 Expenditures: Economic Development: Administration 65,282 67,167 69,772 80,715 98,604 Fiscal agent fees 2,200 2,420 2,420 2,420 2,420 Treasurer's fees 113,259 115,121 118,789 135,427 164,416 Professional fees 5,435 11,623 2,810 8,087 2,895 Vail Square Metro District 456,957 464,548 456,784 464,039 524,143 Total Economic Development:643,134 660,879 650,575 690,688 792,478 Debt Service: Principal 475,000 490,000 500,000 515,000 535,000 Interest 591,178 577,928 564,928 547,753 526,753 Total Debt Service:1,066,178 1,067,928 1,064,928 1,062,753 1,061,753 Total Expenditures 1,709,312 1,728,807 1,715,503 1,753,441 1,854,231 Excess (Deficiency) of Revenues Over Expenditures 2,121,560 2,277,287 2,414,311 2,932,342 3,794,533 Other Financing Sources (Uses): Transfers out (3,049,280) (2,757,636) (3,546,063) (4,179,718) (4,599,998) Total Other Financing Sources (Uses)(3,049,280) (2,757,636) (3,546,063) (4,179,718) (4,599,998) Net Change in Fund Balance (927,719) (480,349) (1,131,752) (1,247,376) (805,465) Fund Balance - January 1 6,851,969 5,924,250 5,443,901 4,312,149 3,064,773 Fund Balance - December 31 5,924,250 5,443,901 4,312,149 3,064,773 2,259,308 TABLE VI History of Revenues, Expenditures and Changes in Fund Balance Vail Reinvestment Authority G3 June 4, 2019 - Page 148 of 242 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables VII and VIII December 31, 2018 2018 2018 2019 Budget Actual Budget Revenues: Other: Property tax 5,540,000 5,475,660 5,540,000 Interest on investments 1,745 4,045 2,615 Interest Subsidy (Build America Bonds)167,444 169,059 167,444 Total Revenues 5,709,189 5,648,764 5,710,059 Expenditures: Economic Development: Administration 100,000 98,604 100,000 Fiscal agent fees 2,800 2,420 2,800 Treasurer's fees 166,200 164,416 166,200 Professional fees 10,000 2,895 10,000 Vail Square Metro District 523,800 524,143 523,800 Total Economic Development:802,800 792,478 802,800 Debt Service: Principal 535,000 535,000 555,000 Interest 526,753 526,753 501,432 Total Debt Service:1,061,753 1,061,753 1,056,432 Total Expenditures 1,864,553 1,854,231 1,859,232 Excess (Deficiency) of Revenues over Expenditures 3,844,636 3,794,533 3,850,827 Other Financing Sources (Uses): Transfers out (5,202,023) (4,599,998) (3,050,000) Net Change in Fund Balance (1,357,387) (805,465) 800,827 Fund Balance - January 1 3,064,772 3,064,772 1,707,385 Fund Balance - December 31 1,707,385 2,259,307 2,508,212 Outstanding Issue Principal Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A -$ Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B 8,270,000 Total 8,270,000$ TABLE VII 2018 Budget Summary and Actual Comparison / 2019 Budget Vail Reinvestment Authority TABLE VIII Outstanding Revenue Obligations G4 June 4, 2019 - Page 149 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Ordinance No. 4, S eries of 2019, Second Reading, an Ordinance A mending S ection 12-7H-12, Density, Vail Town Code, and Section 14-8-1, Vail Town Code, to Remove the Dwelling Units per Acre Maximum W hile Maintaining the Existing Dimensional Standards I ncluding G R FA and Building Height in the L ionshead Mixed Use-1 Z one District. P RE S E NT E R(S ): Chris Neubecker, P lanning Manager, Community Development AC T IO N RE Q UE S T E D O F C O UNC I L: T he Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 4, Series of 2019, upon second reading. B AC K G RO UND: The proposed change to the density maximum in L ionshead Mixed Use-1 zone district will encourage redevelopment of properties in the L ionshead area, as recommended in the L ionshead Redevelopment Master Plan. S TAF F RE C O M M E ND AT IO N: T he Community Development Department recommends approval of Ordinance No. 4, S eries of 2019 on S econd Reading. AT TAC H ME N TS: Description Staff Memo- Lionshead Mixed Use-1 Density Ordinance No. 4, Series of 2019 - Second Reading Attachment A - Vicinity Map Attachment B - Applicant Narrative Attachment B-2 - Applicant Narrative (Updated) Attachment C - Lionshead Analysis of Redevelopment by MP G Attachment D - Letter from Eagle River Water and Sanitation District Attachment E - Memo from Town Engineer on Traffic Attachment F - Previous Zoning Map - Lionshead Area Attachment G - Staff Memo to P E C - January 28, 2019 June 4, 2019 - Page 150 of 242 TO: Vail Town Council FROM: Community Development Department DATE: June 4, 2019 SUBJECT: Second reading of Ordinance No. 4, Series of 2019, an ordinance amending Section 12-7H-12, Density, Vail Town Code, and Section 14-8-1, Site Development Standards, Vail Town Code, to remove the dwelling units per acre maximum while maintaining the existing dimensional standards including GRFA and building height in the Lionshead Mixed Use-1 (LMU-1) zone district. Applicant: Treetops Condominium Association, represented by Mauriello Planning Group Planner: Chris Neubecker I. SUMMARY The applicant, the Treetops Condominium Association, represented by Mauriello Planning Group, requests the second reading of Ordinance No. 4, Series of 2019, an ordinance amending Section 12-7H-12, Density, Vail Town Code, and Section 14-8-1, Site Development Standards, Vail Town Code, to remove the dwelling units per acre maximum while maintaining the existing dimensional standards including GRFA and building height in the Lionshead Mixed Use-1 (LMU-1) zone district. On January 28, 2019 the Planning and Environmental Commission (PEC) forwarded a recommendation of approval of the proposed text amendment to the Vail Town Council subject to the findings noted in Section VIII of the staff memorandum to the PEC. (Attachment G). No changes are proposed from first reading. II. ACTION REQUESTED OF THE TOWN COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 4, Series of 2019, upon second reading. III. DESCRIPTION OF REQUEST The applicant is proposing to amend the Vail Town Code to remove the limit on the maximum number of dwelling units per acre (density) allowed within the Lionshead June 4, 2019 - Page 151 of 242 Town of Vail Page 2 Mixed Use-1 (LMU-1) zone district, so that there would be no limit on density. Development would still be subject to the existing limits on Gross Residential Floor Area (GRFA), building heights, setbacks, site coverage, landscaping, or any other dimensional standard. The proposed text amendment would apply only to properties within the Lionshead Mixed Use-1 (LMU-1) zone district. The Lionshead Mixed Use-1 (LMU-1) zone district is bounded (approximately) on the north side by S. Frontage Road and E. Lionshead Circle, on the south side by Gore Creek, on the west at the intersection of S. Frontage Road and Forest Road, and on the east by Dobson Ice Arena and the Vail Library. (The Lionshead Parking Structure, Dobson Ice Arena, and Vail Library are in the General Use (GU) zone district, and are not impacted by this proposal.) Please see Attachment A – Vicinity Map, for more details. Following are the proposed text amendments: (New language is shown in bold italics. Text removed is shown in strikethrough.) Section 12-7H-12: DENSITY (DWELLING UNITS PER ACRE): Up to a thirty three percent (33%) increase over the existing number of dwelling units on a property or thirty five (35) dwelling units per acre, whichever is greater, shall be allowed. For the purpose of calculating density, employee housing units, accommodation units, attached accommodation units, timeshare units, and fractional fee club units shall not be counted as dwelling units. Additionally, a "lodge dwelling unit", as defined herein, shall be counted as twenty five percent (25%) of a dwelling unit for the purpose of calculating density. No limitation on the number of dwelling units per acre permitted Section 14-8-1, SITE DEVELOPMENT STANDARDS TABLE 8 SUMMARY OF ZONING SETBACK AND DEVELOPMENT LIMITATIONS LMU-1 Lionshead mixed use 1 35 units per acre or 33% increase over existing units on property No limitation on the number of dwelling units per acre permitted Type IV as a permitted use 10' all2 May project not more than the lesser of 10' or 1/2 the required setback May project not more than the lesser of 5' or 1/2 the required setback 4' 70%2 20%2 10,000 None n/a 71' average 82.5 max.2 50% of parking must be located within the main building or buildings. June 4, 2019 - Page 152 of 242 Town of Vail Page 3 IV. BACKGROUND Prior to adoption of the current zoning (1999) and the Lionshead Redevelopment Master Plan (LRMP), the zoning in the Lionshead area included several zone districts. The following zone districts were in place on the various properties currently zoned Lionshead Mixed Use-1 (LMU-1): • Commercial Core 1(CC1) • High Density Multiple Family (HDMF) • Medium Density Multiple Family (MDMF) • Special Development District (SDD) • Parking (P) On December 15, 1998 the Vail Town Council adopted the Lionshead Redevelopment Master Plan as an official element of the Vail Comprehensive Plan, via Resolution No. 14, Series of 1998. The purpose of the Plan was “to encourage redevelopment and new development initiatives within the Lionshead study area.” Lionshead was recognized at the time to lack the economic vitality of Vail Village and failed to offer a world-class resort experience. Lionshead lacked growth in accommodation units, had a poor quality retail experience, uninteresting pedestrian environment, mediocre architectural character and was absent incentives for redevelopment. The adopted LRMP created incentives for redevelopment, and to date, several properties have redeveloped or new construction has been completed. On April 6, 1999, the Vail Town Council adopted Ordinance No. 3, Series of 1999 which amended the zoning regulations in the Lionshead area by creating two new zone districts, Lionshead Mixed Use-1 and Lionshead Mixed Use-2, in order to implement the Lionshead Redevelopment Master Plan. On April 6, 1999 the Vail Town Council adopted Ordinance No. 4, Series of 1999, which amended the official zoning map for the Town of Vail and rezoned most of the land within the Lionshead area to Lionshead Mixed Use-1 zone district. On March 21, 2006 the Vail Town Council adopted Resolution No. 3, Series of 2006 to allow for the addition of the Lionshead Redevelopment Master Plan land use designation, deletion of the Tourist Commercial land use designation, and amendments to the Land Use map. On March 5, 2019 the Vail Town Council reviewed this item during first reading. Some Council members raised concerns over the wording “unlimited”, while others asked for additional information on the impacts of this proposal on traffic, as well as water and sewer infrastructure capacity. Council approved the ordinance on first reading by a vote of 5-2 (Foley and Langmaid voting against). June 4, 2019 - Page 153 of 242 Town of Vail Page 4 V. CRITERIA FOR REVIEW Per Section 12-3-7, Amendment, Vail Town Code, before acting on a zone district boundary amendment application, the PEC and Town Council shall consider the following factors with respect to this proposal: 1. The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and Staff finds that the applicant’s proposed text amendments will further the general and specific purposes of the zoning regulations by promoting the redevelopment of residential property, and in some cases the associated commercial spaces, within the Lionshead Mixed Use-1 zone district. The purpose of the Lionshead Redevelopment Master Plan and Lionshead Mixed Use-1 zone district is to promote redevelopment, which can be encouraged by removing restrictions on density and allowing greater flexibility for private sector investments. The proposed changes will provide additional options for redevelopment above those already existing. The removal of the density limit should have no visual impact on Lionshead, since the existing regulations for GRFA, building height, setbacks, site coverage, parking and design requirements will remain. Staff finds that this criterion has been met. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and Staff finds that the proposed text amendments will better implement or achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan. The Lionshead Redevelopment Master Plan encourages redevelopment, but the existing zoning regulations for the Lionshead Mixed Use-1 zone district, including higher density limits, have resulted in limited redevelopment. The proposed changes could create enough flexibility to spur some owners and associations to take on a redevelopment project. It is unlikely that all properties in need of renewal will take advantage of the proposed density changes, but the proposed text amendment increases the likelihood for redevelopment. Those properties that redevelop will contribute to advancing the goals for renewal in this important core area of the community while still meeting the existing dimensional requirements such as GRFA, building height, setbacks, site coverage, landscaping and parking. Staff finds that this criterion has been met. June 4, 2019 - Page 154 of 242 Town of Vail Page 5 3. The text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and Conditions have changed since the adoption of the Lionshead Mixed Use-1 zone district. When the existing Lionshead Mixed Use-1 zone district was adopted, there was an expectation that unlimited density for timeshares, accommodation units and fractional fee units, as well as a 33% increase in dwelling units (or 35 units per acre, whichever is greater), would be sufficient to encourage redevelopment. Timeshare and fractional fee units are not nearly as popular today as they once were, and many such units that were built now sit vacant and unsold. The existing regulation is no longer appropriate if it is not achieving the desired policy result. Removal of the density limit is one more step that can provide flexibility and options to encourage owners to upgrade their properties. The existing regulation is not fully achieving its desired outcome. Staff finds that this criterion has been met. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and Staff believes this text amendment will ensure a harmonious, convenient, workable relationship among land use regulations consistent with the Town's development objectives. Specifically, the proposed text amendment will only change the allowed number of dwelling units. No changes are proposed to the GRFA, building height, setbacks, parking, site coverage or design requirements. As a result, the exterior of any new building reviewed under the proposed regulations will need to meet the same regulations that currently apply. Under existing regulations, a building can be constructed that looks identical in size and shape to a building that would be allowed with the proposed text amendment. Staff finds that this criterion has been met. 5. Such other factors and criteria the planning and environmental commission and/or council deem applicable to the proposed text amendment. In addition to the considerations mentioned above, the Town Council should consider the impact of the proposed text amendments on the capacity of the Town’s infrastructure, including roads, water and sewer. The proposed text amendment will allow for an increase in the total number of dwelling units within the Lionshead Mixed Use-1 zone district, which should also lead to an increase in the number of people living and staying in Lionshead. As a result of more people, redevelopment is expected to generate more traffic, water use, and wastewater. June 4, 2019 - Page 155 of 242 Town of Vail Page 6 Water and Sewer As shown on the attached memo (Attachment D) from the Eagle River Water and Sanitation District (ERWSD), the proposal to eliminate the density maximum could have future impacts on the capacity of the local sewer treatment plants. If the growth in Vail is greater than assumed by ERWSD (current assumptions are for growth of wastewater generation of 1.14% per year), then investments in creating additional treatment facility capacity will need to happen sooner than currently planned, and will likely lead to higher rates for customers. Please review the attached memorandum from Jason Cowles and Len Wright of the Eagle River Water and Sanitation District, dated May 20, 2019. (Attachment D) Traffic Removing the limit on density in Lionshead should lead to more redevelopment and more dwelling units, which will likely lead to more traffic. Since the last review of this application by Town Council, the Town of Vail and the Applicant have partnered to acquire new traffic counts along East Lionshead Circle. Traffic was counted on Saturday March 23, 2019. Based on information in the traffic counts, there were approximately 1,300 pedestrians crossing East Lionshead Circle during the peak PM hour. Based on redevelopment assumptions developed by Mauriello Planning Group with an average unit size of 1,600 square feet for new units, it is estimated that approximately 320 new dwelling units could be developed with access from East Lionshead Circle. The projected redevelopment would result in an increase of approximately 112 to 125 additional vehicular trips at the peak PM hour across the crosswalk to the Lionshead Parking Structure. Traffic at this location is projected to increase from approximately 400 peak PM vehicular trips per hour on East Lionshead Circle, to approximately 525 peak PM trips per hour, an increase of about 30%. This would result in more conflicts between pedestrians and vehicles. Options for reducing the conflict between vehicles and pedestrians include: • Installing a gate at the lower section of East Lionshead Circle at the existing median, thus eliminating unnecessary traffic (~37 PM Peak Hour), and slowing traffic down before entering the crosswalk from the west. • Relocating Vail International’s access point to S. Frontage Road, if possible, as contemplated in the Civic Area Plan, thus reducing PM peak hour trips by 23 existing and 29 of the net new potential trips. (~52 PM Peak Hour) • Relocating Shuttles • Limiting development along East Lionshead Circle June 4, 2019 - Page 156 of 242 Town of Vail Page 7 Unlimited Density As proposed, there would be no limit on the number of dwelling units allowed in the Lionshead Mixed Use-1 zone district. In reality, there will not be an unlimited number of units built. For a project that reaches its maximum GRFA, the average size of the dwelling units must get smaller as the number of units increases. At some point, however, units become too small to sell. Staff believes that the Applicant’s proposal will lead to more redevelopment within Lionshead. Since the purpose of the Lionshead Redevelopment Master Plan is to encourage redevelopment, staff considers this proposal in line with the policy objective of the master plan. Short Term Rentals If more units of smaller size are built, this could be good for the local economy. Smaller units may be more likely to be short-term rented than larger units. These “hot beds” are encouraged in the Lionshead Redevelopment Master Plan since they are assumed to contribute more effectively to the local economy by supporting local retail and restaurants. VI. RECOMMENDED MOTION The Community Development Department recommends that the Vail Town Council approve Ordinance No. 4, Series of 2019. Should the Vail Town Council choose to approve Ordinance No. 4, Series of 2019, upon second reading, the Community Development Department recommends the Council pass the f ollowing motion: “The Vail Town Council approves, on second reading, Ordinance No. 4, Series of 2019, an ordinance amending Section 12-7H-12, Density, Vail Town Code, and Section 14-8-1, Site Development Standards, Vail Town Code, to remove the dwelling units per acre maximum while maintaining the existing dimensional standards including GRFA and building height in the Lionshead Mixed Use-1 zone district and setting forth details in regard thereto.” Should the Vail Town Council choose to approve Ordinance No. 4 Series of 2019, the Community Development Department recommends the Council m ake the f ollowing findings: “Based upon the review of the criteria outlined in Sections VII of the Staff me morandum to the Planning and Environmental Commission dated January 28, 2019 and the evidence and testimony presented, the Vail Town Council finds: June 4, 2019 - Page 157 of 242 Town of Vail Page 8 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and 2. That the amendment furthers the general and specific purposes of the zoning regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” VII. ATTACHMENTS A. Vicinity Map B. Applicant’s Narrative C. Lionshead Analysis of Redevelopment by MPG D. Letter from Eagle River Water and Sanitation District, dated May 20, 2019 E. Letter from Tom Kassmel, Town Engineer, dated June 10, 2019 F. Previous Zoning Map – Lionshead Area G. Staff Memo to PEC – January 28, 2019 H. Lionshead Redevelopment Master Plan (link) I. Vail Transportation Master Plan (link) June 4, 2019 - Page 158 of 242 1 ORDINANCE NO. 4 SERIES 2019 AN ORDINANCE AMENDING SECTION 12-7H-12, DENSITY, AND SECTION 14-8-1, SITE DEVELOPMENT STANDARDS, VAIL TOWN CODE, TO REMOVE THE DWELLING UNITS PER ACRE MAXIMUM WHILE MAINTAINING EXISTING DIMENSIONAL STANDARDS INCLUDING GRFA AND BUILDING HEIGHT IN THE LIONSHEAD MIXED USE-1 ZONE DISTRICT WHEREAS, on December 15, 1998 the Vail Town Council adopted Resolution No. 14, Series of 1998, adopting the Lionshead Redevelopment Master Plan as an official element of the Vail Comprehensive Plan to guide redevelopment in the Lionshead Study Area; WHEREAS, on April 6, 1999 the Vail Town Council adopted Ordinance 3, Series of 1999, establishing the Lionshead Mixed Use-1 zone district; WHEREAS, one of the primary purposes of the Lionshead Mixed Use-1 zone district is to encourage and provide incentives for redevelopment in accordance with the Lionshead Redevelopment Master Plan; WHEREAS, the Lionshead Mixed Use-1 zone district includes increased density over the previously established zoning in the Lionshead redevelopment master plan study area; WHEREAS, on January 28, 2019 the Planning and Environmental Commission held a properly-noticed public hearing on the proposed amendments and forwarded a recommendation of approval to the Vail Town Council; WHEREAS, the existing regulations are obsolete and need to be updated to further encourage redevelopment in the Lionshead Mixed Use-1 zone district; WHEREAS, amending the density regulations will provide the incentives necessary to encourage redevelopment while maintaining the existing dimensional standards including gross residential floor area (GRFA) and building height in the Lionshead Mixed Use-1 zone district; and WHEREAS, the proposed amendments are supported by the Lionshead Redevelopment Master Plan and the Vail Land Use Plan. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Section 12-7H-12 of the Vail Town Code is hereby repealed in its entirety and reenacted as follows: 12-7H-12: DENSITY (DWELLING UNITS PER ACRE): June 4, 2019 - Page 159 of 242 2 No limitation on the number of dwelling units per acre permitted Section 2. Section 14-8-1, Site Development Standards, Table 8, Summary of Zoning Setback and Development Limitations, Vail Town Code, only as it pertains to the Lionshead Mixed Use 1 zone district, is hereby amended to read as follows: TABLE 8 SUMMARY OF ZONING SETBACK AND DEVELOPMENT LIMITATIONS LMU-1 Lionshead mixed use 1 35 units per acre or 33% increase over existing units on property No limitation on the number of dwelling units per acre permitted Type IV as a permitted use 10' all2 May project not more than the lesser of 10' or 1/2 the required setback May project not more than the lesser of 5' or 1/2 the required setback 4 ' 70%2 20%2 10,000 None n/a 71' average 82.5 max.2 50% of parking must be located within the main building or buildings. Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The amendment of any provision of the Vail Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 5. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 5th day of March, 2019 and a June 4, 2019 - Page 160 of 242 3 public hearing for second reading of this Ordinance is set for the 4th day of June, 2019, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. _____________________________ Dave Chapin, Mayor ATTEST: ____________________________ Tammy Nagel, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 4th day of June, 2019. _____________________________ Dave Chapin, Mayor ATTEST: ____________________________ Tammy Nagel, Town Clerk June 4, 2019 - Page 161 of 242 Marrio tt Antlers Vail Spa Va il Valley Medical Center Arrabe lle (parking) Landmark EvergreenLodgeVail 21 First Chair Ritz Carlton Residences Library Vantage Point Mon tane ro s Dobson Ice Arena We stwind Water TreatmentFacility Lionshea d Ce ntre Enzian Lift House Vail International Tree Tops Lion Square Lodge Sou th & East Lion Square Lodge North Lodge at Lionshead Eag le Ba hnGondola Sun VailCondos Forest Place Solar Vail VR Maintenance Buildings Lionshead Inn Lionshead Arcade PH III WestLionshead Plaza Chair 8 Lionshead Inn Annex Gore Creek Re sidences Lions PrideBuilding TicketOffice Restrooms PH IIPH I LionsheadWelcome Center SkierDrop-Off Charte rBus Lot LionsheadTransit Center I 70 EastboundI 70 W estboundWFORESTRD S FRONTAGE RD W N F R O N T A G E R D W B E A V ER DAMRD W MEADOW DR E FOR E S T RD W LIONSHE A D C IR E LIONSHEAD CIR L I ONSHEAD MALL LI O NSH E A D PLBEAVERD A M C I R I Subject Property 0 5010025Feet Z o n i n g C o d e A m e n d m e n t - P E C 1 8 -0 0 4 1Zoning C o d e A m e n d m e n t - P E C 1 8 -0 0 4 1 L i o n s h e a d M i x e d U s e 1 Z o n e D i s t r i c tLionshead M i x e d U s e 1 Z o n e D i s t r i c t This ma p w as created by the Town of Vail Co mmu nity Development Departme nt. Use of this ma p shou ld be for g eneral p urp oses o nly.The Town of Vail does no t warran t the accura cy of the informa tion co nta in ed herein.(whe re sh own, pa rcel line work is ap pro xima te ) Last Modified: January 16, 2019 Zoning Designation Lionshead Mixed Use 1 June 4, 2019 - Page 162 of 242 
 Zoning Text Amendment Modifying the Density Requirements of the Lionshead Mixed Use 1 Zone District Submitted: November 2018 June 4, 2019 - Page 163 of 242 Introduction Mauriello Planning Group is representing the Treetops Condominium Association which is requesting a text amendment to the Zoning Regulations to amend Section 12-7H-12: Density (Dwelling Units Per Acre). Specifically, the amendment would amend the allowable density in the Lionshead Mixed Use 1 (LMU-1) Zone District. This section currently allows for 35 dwelling units per acre or a 33% increase over the existing number of dwelling units. The applicant is requesting that density be unlimited. No other changes are proposed, so all other development standards, including building height, GRFA, site coverage, parking, etc., remain the same. As a result, the amendment has no impact upon the bulk and mass of a structure. Background Prior to 1999, the Lionshead Area was zoned a mixture of Commercial Core 2, High Density Multiple Family, and Special Development Districts, as shown on the following Zoning Map from 1995. Town visionaries recognized that the redevelopment of Lionshead was critical for Vail to remain a competitive four-season resort, and in the mid-1990s, the Town undertook a master planning process to complete the Lionshead Redevelopment Master Plan (LRMP), which was to guide development over the next 15 to 20 years. The LRMP was adopted in December of 1998 by Resolution No. 13, Series of 1998, and subsequently two new zone districts were created by Ordinance No. 3, Series of 1999: Lionshead Mixed Use 1 (LMU-1) and Lionshead Mixed Use 2 (LMU-2). These zone districts were intended to create more cohesive standards for development across Lionshead and to implement the vision of the LRMP. !1 June 4, 2019 - Page 164 of 242 The Town then passed Ordinance No. 4, Series of 1999 which rezoned most of the Lionshead core to LMU-1, as indicated on the following current zoning map: The area known as West Lionshead, consisting of the VR Maintenance Yard and former BP Gas Station site, was zoned LMU-2, which is not subject to this proposed text amendment. The LRMP recognized that to incentivize redevelopment, additional development potential was necessary, and in that spirit, the purpose statement of the LMU-1 zone reads as follows: 12-7H-1: PURPOSE: The Lionshead mixed use 1 district is intended to provide sites for a mixture of multiple-family dwellings, lodges, hotels, fractional fee clubs, timeshares, lodge dwelling units, restaurants, offices, skier services, and commercial establishments in a clustered, unified development. Lionshead mixed use 1 district, in accordance with the Lionshead redevelopment master plan, is intended to ensure adequate light, air, open space and other amenities appropriate to the permitted types of buildings and uses and to maintain the desirable qualities of the zone district by establishing appropriate site development standards. This zone district is meant to encourage and provide incentives for redevelopment in accordance with the Lionshead redevelopment master plan. This zone district was specifically developed to provide incentives for properties to redevelop. The ultimate goal of these incentives is to create an economically vibrant lodging, housing, and commercial core area. The incentives in this zone district include increases in allowable gross residential floor area, building height, and density over the previously established zoning in the Lionshead !2 June 4, 2019 - Page 165 of 242 redevelopment master plan study area. The primary goal of the incentives is to create economic conditions favorable to inducing private redevelopment consistent with the Lionshead redevelopment master plan. Additionally, the incentives are created to help finance public off site improvements adjacent to redevelopment projects. With any development/redevelopment proposal taking advantage of the incentives created herein, the following amenities will be evaluated: streetscape improvements, pedestrian/bicycle access, public plaza redevelopment, public art, roadway improvements, and similar improvements. As the purpose of LMU-1 suggests, development standards were adopted with the intent of providing incentives for properties to redevelop. The standards of the LMU-1 zone district are provided below: As mentioned previously, the applicant is proposing to amend only the “Density (Dwelling Units Per Acre)” for the entire Lionshead Village area. The LRMP and LMU-1 zoning was successful in spurring the redevelopment of many projects in Lionshead. Projects, such as the Antlers, redevelopment of the core site into the Arrabelle, along with the Ritz Carlton and Gore Creek Residences were able to take advantage of the flexibility and incentives of the LMU-1 zone district not long after the zone district was adopted. Other projects, such as Vail Spa, Vail 21, and the Enzian have done major exterior upgrades without adding new units. The following table indicates all existing levels of development within the LMU-1 zone district and the density associated with each property. This information was gathered from the Eagle County Assessor’s office Lot Area and Site Dimensions: 10,000 sq. ft. of buildable area Setbacks:10 ft. unless otherwise specified by the LRMP Height and Bulk:Maximum average of 71 ft. with maximum height of 82.5 ft. Density (Dwelling Units Per Acre):Up to a 33% increase over the existing number of dwelling units on a property or 35 dwelling units per acre, whichever is greater, shall be allowed. For the purpose of calculating density, employee housing units, accommodation units, attached accommodation units, timeshare units, and fractional fee club units shall not be counted as dwelling units. Additionally, a "lodge dwelling unit", as defined herein, shall be counted as 25% of a dwelling unit for the purpose of calculating density. Gross Residential Floor Area:Up to 250 sq. ft. of gross residential floor area shall be allowed for each 100 sq. ft. of buildable site area, or an increase of 33% over the existing GRFA found on the property, whichever is greater. Site Coverage:70% unless otherwise specified by the LRMP Landscaping and Site Development: 20% unless otherwise specified by the LRMP Parking and Loading:In accordance with Chapter 10 !3 June 4, 2019 - Page 166 of 242 and Town records. Density has been calculated per Section 12-74-12: Density of the Vail Town Code: Existing Density in Lionshead Name of Development Dwelling Units Lodge Dwelling Units EHUs Hotel Fractional
 Timeshare Lot Size Density (DUs / Acre) Antlers 96 0 9 0 0 1.21 79.34 Arrabelle 67 0 0 36 0 2.93 22.87 Concert Hall Plaza 0 0 0 0 0 0.26 0.00 Enzian 12 0 0 0 0 0.30 40.00 Elevation (proposed)9 0 3 0 0 0.31 28.66 Evergreen Lodge 19 0 0 128 0 2.45 7.76 First Chair 0 0 32 0 0 0.75 0.00 Landmark 73 3 2 0 0 1.51 48.84 Lift House 1 45 0 0 0 0.44 27.84 Lion Square Lodge North 36 0 0 0 0 0.94 38.30 Lion Square Lodge South and East 66 2 0 31 0 1.81 36.74 Lions Pride Building 0 0 0 0 0 0.83 0.00 Lionshead Arcade 14 0 0 0 0 0.32 43.75 Lionshead Centre 25 0 0 0 0 0.90 27.78 Lodge at Lionshead I, II, III 48 6 0 0 0 2.69 18.40 Mark Lodge 13 0 0 42 0 0.89 14.61 Montaneros 40 0 0 0 0 1.01 39.60 The Lion 53 4 1 0 10 1.57 34.39 Tree Tops 29 0 0 0 0 0.90 32.22 Vail 21 21 0 0 0 0 0.36 58.33 Vail International 56 0 0 0 0 1.83 30.60 Vail Spa 55 0 0 0 0 3.21 17.13 Vantage Point 47 9 0 0 9 1.53 32.19 West Day Lot Subdivision (Marriott, Ritz, Gore Creek Residences)* 122 0 0 276 45 6.82 17.89 Westwind 35 0 0 0 0 0.87 40.23 TOTAL 937 69 47 513 64 !4 June 4, 2019 - Page 167 of 242 ✴West Day Lot Subdivision includes the Ritz Carlton Residences, Gore Creek TH, and western portion of the Marriott Hotel. It is considered one development site for zoning purposes. The LMU-1 zone district does not count EHUs, hotel rooms or accommodation units, or timeshare units towards density. The thought in 1998 was that this policy would encourage the construction of these unit types as they were considered to be similar to hotel or warm beds, meaning they would have higher occupancy than dwelling units. As indicated in the table, few projects have built timeshare or fractional units, especially recently. The Ritz Carlton Residences, which is part of the West Day Lot Subdivision, is one of the few to have successfully sold fractional ownership. The Lion has 10 fractional units, of which none have yet sold. Since the adoption of the LRMP, the economics of redevelopment have changed. The trend in the late 1990s of timeshare and fractional ownership has largely disappeared. Timeshare units have similar if not greater impacts than dwelling units. Timeshare units are similar to dwelling units in a short-term rental program, from a use standpoint. Often the design and/or layout of a timeshare unit is the same as a dwelling unit. The difficulties of the timeshare market mean that they are not a favored development option, and dwelling units would simply replace timeshare, meaning the effects on the community would be minimal. As a result, impacts to infrastructure, roads, water, sewer, etc. remain unchanged by having dwelling units constructed instead of timeshare units. Impacts to the economy are improved because there is a market for dwelling units and because they are simple to short term rent. As another method of encouraging the construction of warm beds, the LRMP outlined the idea of lodge units as follows: New Unit Definition The master plan recommends that the zoning regulations be modified to include “lodge unit” as an additional definition of a residential unit. This product is defined as a small condominium dwelling unit with limited kitchen and floor area. (The floor area usually averages less than 650 sq. ft.) Units of this small size are most likely to be in short-term rental pools, with occupancy rates similar to !5 The Lion, at 701 W. Lionshead Circle, was approved in 2007 but construc=on was not completed un=l 2017. It included the construc=on of 10 frac=onal units, which have been challenged by a declining frac=onal market following the recession. June 4, 2019 - Page 168 of 242 those for hotel rooms. Because an increase in the short-term bed base in Lionshead is a key objective, the planning team recommends that lodge units count as one-quarter of a normal dwelling unit (i.e. 4 lodge units count as one dwelling unit). Further, it recommends that units of this size in existing properties be treated as lodge units for the purpose of calculating density. The LMU-1 zone district included the creation of a new unit type, “lodge dwelling units” (LDU). These units are defined as: LODGE DWELLING UNIT: A small dwelling unit with limited kitchen and floor area and which contains six hundred fifty (650) square feet or less of floor area and is intended to be rented on a short term basis. At the time, it was thought that LDUs, as smaller dwelling units, would be more likely to be placed in a short-term rental pool. To encourage the development of them, they only count as 25% of a dwelling unit, for the purpose of calculating density. Unfortunately, the market did not support the development of LDUs, and only The Lion constructed new LDUs under LMU-1. A few projects were originally constructed with small unit types that fall into this category, most notably Lift House and Vantage Point. In the past 20 years, only 4 new lodge dwelling units have been constructed which is not a great success for the LDU concept recommended by the LRMP. Since the 1990s, the market has seen a dramatic increase in the short-term rental of dwelling units, due to three primary factors: •Use of the internet and smart phones •Increase in the use of on-line short-term rental sites, such as AirBnB and VRBO •Rental management companies This has allowed many owners of units that may not have on-site rental management and services to short-term rent their properties. In summary, while neither timeshare units nor LDUs were popular development methods, the short-term rental of dwelling units throughout the town has been extremely successful in the creation of warm beds. The Town’s goal of increasing !6 A simple search of VRBO for rentals available in “Lionshead Village, Vail, CO yields over 300 results, indicating the success of on-line short-term rental sites. June 4, 2019 - Page 169 of 242 the bed base through the provision of hotel rooms as part of new development projects has also been challenging. Many of the developments in Lionshead are not necessarily structured to be able to manage a hotel operation. As a result, new hotel rooms in Lionshead have only been constructed by Vail Resorts at the Arrabelle. Most projects have needed and will continue to need new dwelling units to fund redevelopment projects. This was a fact identified in the LRMP in the 1990s, and was based on economic modeling that was adopted as part of the appendices of the LRMP. The modeling at the time identified a need for a 33% increase over existing density to be able to fund redevelopment of existing buildings. The LRMP stated: Density (Dwelling Units Per Acre): The allowable density of development in the study area should be increased to provide ample incentive and create the financial mechanism for redevelopment of properties. Additional consideration must be given to existing properties that currently exceed the density limitations. A model developed during the master planning process showed that an increase of at least 33% over existing zoning or existing dwelling units on a given site would be needed to make redevelopment an attractive option. In order to encourage the development of live beds or warm beds in Lionshead, the master plan recommends that accommodation units, hotel rooms and fractional ownership units not be counted in the calculation of density. Further, because it is a community goal to increase the number of permanent residents in Lionshead, employee housing units that are deed restricted for local employees should not count toward density. While this increase in density spurred new development in Lionshead, it could be argued that the substantial increase in GRFA also played a role. CC2, which was the zone district that most of Lionshead was previously zoned, only allows for 80 sq. ft. of GRFA for each 100 sq. ft. of buildable area. LMU-1 allows for 250 sq. ft. of GRFA for each 100 sq. ft. of buildable area. This is almost over a 200% increase in allowable GRFA in Lionshead. This is a result of the recommendation of the LRMP with regard to GRFA: Gross Residential Floor Area (GRFA) !7 Redevelopment of the core site into the Arrabelle at Vail Square, included 67 dwelling units and 36 hotel rooms. June 4, 2019 - Page 170 of 242 An important component of the Lionshead Master Plan process was the analysis of GRFA’s effectiveness as a tool for insuring the quality of architecture and the built environment within Lionshead. In short, the masterplan team found that GRFA was not effective as a primary means of providing for architectural quality. Based on this finding it is the conclusion of the master plan team that GRFA should not be the primary means of regulating building size. To accomplish this, one of two options must be pursued. First, GRFA could be eliminated. Secondly, the GRFA ratio could be increased so that it functions as a safety valve to insure that buildings do not exceed the maximum residential floorplate area that would otherwise be allowed according to the criteria of the architectural design guidelines. If this second course of action is pursued, the following recommendations are made: a.The ratio of Gross Residential Floor Area (GRFA) to lot area should be increased on all properties within Lionshead, excluding the residential properties south of Gore Creek, so that the site and architectural design guidelines, not GRFA, are the primary building size and mass constraint. b.The method of calculating GRFA should be greatly simplified and changed to include common space so that basic floor plate area calculations will suffice. The substantial increase in GRFA, but minimal increase in density had one major possible consequence: encouraging the construction of larger dwelling units. In order to maximize profits, developers are actually encouraged to build larger dwelling units using available GRFA within a small pool of dwelling units. Modifying the density requirements could encourage the construction of more, smaller units. These are more likely to be included in a short-term rental program. Effects of Increase Density in LMU-1 The additional dwelling units have the potential to increase traffic within the Town of Vail. However, the real impact is negligible as the number of timeshare units allowed is currently unlimited and the traffic impacts of a timeshare unit and a dwelling unit are the same. The Frontage Roads and roundabouts have been designed to absorb this additional traffic. The proposed increase in density from 35 dwelling units per acre to an unlimited number of dwelling units will improve the ability to redevelop properties in Lionshead. However, it is also prudent to review what will not be affected by the proposed amendment: !8 June 4, 2019 - Page 171 of 242 1.Building Height. The LMU-1 zone district prescribes the height limitation of buildings in Lionshead. The height limit is a maximum average of 71 ft. with maximum height of 82.5 ft. Furthermore, the LRMP has the most prescriptive Design Guidelines of all of the Town’s planning documents. For example, the LRMP provides the following for buildings in Lionshead: Primary Retail Pedestrian Frontages On any property edge fronting a retail pedestrian street or mall (see site design guidelines for definition and locations), at least 50% of a building face shall have a maximum 16’ initial eave height, at which point that face must step back a minimum of 12’. The remaining percentage of building face may have a maximum 36’ initial eave height, at which point the building face shall step back a minimum of 12’. Eave height is defined as the distance from finished grade to the initial primary eave of the structure. Gable faces of buildings are also measured to their eaves, excluding the actual wall area which comprises the gable. The intent of this retail/pedestrian street requirement is to present a dynamic, fragmented streetfront to outdoor spaces, rather than uniform blocks of building mass (see Section 8.4.2.2). Remaining Building Frontage Building faces that do not meet the special site criteria of the sections above may have a maximum initial eave height of 60’, at which point those faces must step back a minimum of 12’. To the extent possible, all new and redeveloped buildings in Lionshead should avoid “turning their backs” on other buildings or important pedestrian corridors. However, it must be acknowledged that very few buildings have prime frontage on all sides and almost all buildings will have different programmatic requirements and visual characteristics on their different faces. Toward that end, a building’s greatest vertical mass and “back of house” functions should occur on the frontage with the least volume of pedestrian traffic. In addition, components of a building with the greatest vertical mass should be oriented north-south to minimize the blockage of southern views and sunlight. It is critical to note that the 60’ maximum initial eave height does not allow for an unarticulated, flat building face from grade to 60’. The horizontal and vertical maximum unbroken building face requirements, all other guidelines !9 June 4, 2019 - Page 172 of 242 contained in this chapter and the Master Plan, and DRB review and approval, shall still apply. The increase in density will not impact the height, stepbacks, or vertical mass of buildings in Lionshead. These standards remain as prescribed by both the LRMP and the LMU-1 zone district, meaning the all development will have to occur within the three dimensional building envelope, or “box,” prescribed by the standards. 2.Site Coverage. This site coverage standard of “70% of site area or as prescribed by the LRMP,” is not proposed to be amended. This means that the footprint of buildings within Lionshead will not be affected by an increase in density. This further limits the “box” of development. 3.GRFA. No change is proposed to the current allowance of GRFA at 250 sq. ft. per each 100 sq. ft. of buildable area. In LMU-1, GRFA includes all square footage within dwelling units, fractional units, and hotels. It only exempts EHU square footage from the GRFA calculation. As a result, the square footage that can fill the “box” remains as it is today. 4.Setbacks. Setbacks requirements, which are 10 ft. or as prescribed by the LRMP, are not proposed to be amended. 5.Parking. Lionshead is within the Commercial Core Area for parking requirements. The parking requirements are not proposed to be amended. All new dwelling units will need to be parked per Chapter 12-10 of the Vail Town Code. These requirements are as follows: Because these development standards will not change with the increase in density, the “box” of buildings also will not change. Developers will need to meet this standards, or need to be granted variances by the Town to change the “box.” Treetops Vision for Redevelopment While this amendment affects all properties within the LMU-1 zone district, the applicant who is spearheading this proposal, Treetops Condominium Association, is considering a redevelopment project. This section is provided for information only, is Dwelling Unit 1.4 spaces Dwelling Unit with one attached accommodation unit 1.4 spaces Dwelling Unit with more than one attached accommodation unit 1.4 spaces plus .7 space per each additional attached accommodation unit !10 June 4, 2019 - Page 173 of 242 not part of this application, and will require future applications for review by the Town of Vail. The Treetops property currently consists of 28 dwelling units and one on-site manager’s unit, which is not deed- restricted. Two units were combined into one at some point in the past. With the current density limitations, Treetops could add 9.57 new dwelling units under the 33% increase allowance. Available GRFA is approximately 60,500 sq. ft. The existing units are approximately 1,200 sq. ft. on average. Treetops is proposing average unit sizes of approximately 1,300 sq. ft., which equates to approximately 45 additional units. This unit type and density will allow for the redevelopment of Treetops in such a manner as to achieve the desired o u t c o m e s o f t h e L R M P. A n y redevelopment of Treetops will also include commercial floor area, employee housing, and underground parking. Treetops will be developed in compliance with all other development standards of the LMU-1 zoning and the LRMP, including building height and bulk and mass standards. Criteria for Review of Text Amendment The review criteria for a text amendment are provided in Section 12-3-7 and are listed below. The Applicant’s analysis of conformance with the criteria follows: A.Factors Enumerated: Before acting on an application for an amendment to the regulations prescribed in this title, the planning and environmental commission and town council shall consider the following factors with respect to the requested text amendment: 1.The extent to which the text amendment furthers the general and specific purposes of the zoning regulations !11 Treetops Condominiums, located at 452 E. Lionshead Circle, was originally constructed in 1972. June 4, 2019 - Page 174 of 242 Applicant Analysis: Chapter 12-1-2: provides the general and specific purposes of the Zoning Regulations: A.General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the town, and to promote the coordinated and harmonious development of the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B.Specific: These regulations are intended to achieve the following more specific purposes: 1.To provide for adequate light, air, sanitation, drainage, and public facilities. 2.To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3.To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4.To promote adequate and appropriately located off street parking and loading facilities. 5.To conserve and maintain established community qualities and economic values. 6.To encourage a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives. 7.To prevent excessive population densities and overcrowding of the land with structures. 8.To safeguard and enhance the appearance of the town. 9.To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10.To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11.To otherwise provide for the growth of an orderly and viable community. The proposed amendment to the LMU-1 zone district to allow for unlimited dwelling units is consistent with the purposes listed above. The amendment encourages density within existing core areas, where density is appropriate and desired. The LRMP Design Guidelines work in tandem with the Zoning Regulations to ensure that structures have appropriate height, setback, and step-backs to ensure that the architectural fabric of the Lionshead pedestrian character is enhanced and preserved. In addition, parking requirements, traffic impacts, and public facilities are addressed in the !12 June 4, 2019 - Page 175 of 242 development review process. The proposed amendment furthers the general and specific purposes of the Zoning Regulations and is therefore consistent with this criterion. 2.The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town Applicant Analysis: Lionshead is governed by the Lionshead Redevelopment Master Plan, which was adopted in 1998. In 1996, the Town Council adopted six policy objectives to provide a framework for the master plan process. These were: Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. Vitality and Amenities We must seize the opportunity to enhance guest experience and community interaction through expanded and additional activities and amenities such as performing arts venues, conference facilities, ice rinks, streetscape, parks and other recreational improvements. Stronger Economic Base Through Increased Live Beds In order to enhance the vitality and viability of Vail, renewal and redevelopment in Lionshead must promote improved occupancy rates and the creation of additional bed base (“live beds” or “warm beds”) through new lodging products. Live beds and warm beds are best described as residential or lodging rooms or units that are designed for occupancy by visitors, guests, individuals, or families on a short term rental basis. In order to improve occupancy rates and create additional bed base in Lionshead, applications for new development and redevelopment projects which include a residential component shall provide live beds in the form of accommodation units, fractional fee club units, lodge dwelling units, timeshare units, attached accommodation units (i.e, lock-off units), or dwelling units which are included in a voluntary rental management program and available for short term rental. Further, it is the expressed goal of this Plan that in addition to creating additional bed base through new lodging products, there shall be no net loss of existing live beds within the Lionshead Redevelopment Master Plan study area. !13 June 4, 2019 - Page 176 of 242 Improved Access and Circulation The flow of pedestrian, vehicular, bicycle and mass transit traffic must be improved within and through Lionshead. Improved Infrastructure The infrastructure of Lionshead (streets, walkways, transportation systems, parking, utilities, loading and delivery systems, snow removal and storage capacity) and its public and private services must be upgraded to support redevelopment and revitalization efforts and to meet the service expectations of our guests and residents. Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital may be raised from all possible sources to fund desired private and public improvements. For private development and redevelopment of properties within Lionshead, two of these are of utmost importance: “Renewal and Redevelopment” and “Stronger Economic Base Through Increase Live Beds.” It was recognized that only through the redevelopment of Lionshead could it become a more vibrant environment for residents and guests, and that the provision of live and warm beds was paramount for redevelopment projects. It is important to note that the policy objectives regarding live beds was amended in 2006 to provide stronger language on the provision of live beds within Lionshead. In Chapter 7 of the LRMP, the Town recognized that density (dwelling units per acre) needed to be increased to encourage redevelopment. In the mid-1990s, the economic model indicated that a 33% increase over existing zoning or existing number of dwelling units was needed to make redevelopment possible. In addition, fractional, timeshare, and hotel units were exempt from the density calculation, as it was thought that this would encourage the development of live beds. A 33% percent may have been appropriate for some properties in the 1990s but that limitation on density no longer holds true in today’s economy and given the cost of construction in this region. The LRMP provided the following on density: Density (Dwelling Units Per Acre): The allowable density of development in the study area should be increased to provide ample incentive and create the financial mechanism for redevelopment of properties. Additional consideration must be given to existing properties that currently exceed the density limitations. A model developed during the master planning process showed that an increase of at least 33% over existing zoning or existing dwelling units on a given site would be needed to make redevelopment an attractive option. !14 June 4, 2019 - Page 177 of 242 In order to encourage the development of live beds or warm beds in Lionshead, the master plan recommends that accommodation units, hotel rooms and fractional ownership units not be counted in the calculation of density. Further, because it is a community goal to increase the number of permanent residents in Lionshead, employee housing units that are deed restricted for local employees should not count toward density. The Vail Land Use Plan was adopted in 1986. It provides the following applicable goals and policies: 1. General Growth / Development 1.1. Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.3. The quality of development should be maintained and upgraded whenever possible. 1.12. Vail should accommodate most of the additional growth in existing developed areas (infill areas). 4. Village Core / Lionshead 4.1. Future commercial development should continue to occur primarily in existing commercial areas. Future commercial development in the Core areas needs to be carefully controlled to facilitate access and delivery. 4.2. Increased density in the Core areas is acceptable so long as the existing character of each area is preserved through implementation of the Urban Design Guide Plan and the Vail Village Master Plan. As indicated in these goals of the Vail Land Use Plan, increased density and additional growth is intended to occur within already developed areas, specifically realizing that growth should occur within the existing core areas. The proposed amendment is consistent with and furthers the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town. 3.The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable !15 June 4, 2019 - Page 178 of 242 Applicant Analysis: The LMU-1 zone district, adopted in 1999, recognized that an increase in development potential was critical to encourage the redevelopment of properties in Lionshead. The density requirements of the zone district were crafted in such a way as to support this idea. Density was increased to 35 dwelling units per acre, or a 33% increase over existing density because many of the existing developments in Lionshead already exceeded 35 dwelling units per acre. Along with this, hotel and timeshare units did not count towards density limitations. At the time, timeshare was considered a viable and profitable development option, but the market for timeshare ownership has greatly diminished. The Town of Vail recently approved a reduction in the number of timeshare units as a result of this change in the market for timeshare at the Four Seasons, which had suffered from sluggish sales of the timeshare product. Many operators and developers have significantly reduced timeshare programs and are no longer involved in the development of new timeshare projects. The 33% increase in density was also based on some economic modeling that was done as part of the LRMP, which used assumptions based on the economy of the 1990s. These models are no longer reflective of the actual costs of development, as construction costs have significantly increased. In addition, the Town’s employee housing requirements, both Inclusionary Zoning and Commercial Linkage, have added substantial costs to developers. These additional costs were added in 2008, with no corresponding increase in density allowances to cover the cost of providing employee housing. As a result of the issues outlined above, conditions have substantially changed since the adoption of the current density regulations. 4.The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives Applicant Analysis: Because the proposed amendment maintains all other development standards of the LMU-1 zone district, along with all of the design standards of the LRMP, the proposed amendment creates opportunities for redevelopment where the development parameters are the same, no matter what “fits in the box.” The more dwelling units that go into the box means the smaller they will be and the more likely they will be rented. In addition, the parking requirement for all uses must be met. 5.Such other factors and criteria the planning and environmental commission and/or council deem applicable to the proposed text amendment !16 June 4, 2019 - Page 179 of 242 Applicant Analysis: Any other factors and criteria that the Planning and Environmental Commission deems applicable will be addressed by the Applicant if requested. B.Necessary Findings: The Planning and Environmental Commission shall make the following findings before granting a conditional use permit: 1.That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and 2.That the amendment furthers the general and specific purposes of the zoning regulations; and 3.That the amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. !17 June 4, 2019 - Page 180 of 242 May 22, 2019 Town Council Members ℅ Chris Neubecker, Planning Manager Town of Vail 75 South Frontage Road Vail, Colorado 81657 Re: Ordinance No. 4 - Lionshead Density Amendment Dear Town Council Members: As you are aware, Ordinance No. 4, Series of 2019, was passed on first reading on March 19, 2019. Second reading of the ordinance was delayed to allow additional time for Town staff, the applicant, and ERWSD to meet and further analyze the impacts of the amendment to future traffic and wastewater demands. The Public Works Department and ERWSD have provided separate memos with their comments. As a reminder, the proposed change to the Lionshead Mixed Use 1 zone district is to allow dwelling units to be treated in the same manner as timeshare units and fractional units. Timeshare and fractional units are dwelling units where there are multiple owners or users of the unit. Other than ownership, there is no difference to the layout or impact of the unit. Today, the number of timeshare and fractional units that can be built on a property is not limited by density requirements, but instead only limited by building height, site coverage limitations, setback requirements, GRFA allowances, and landscape area provisions. The proposal is to allow dwelling units to be developed in the same manner, limited only by building height, site coverage limitations, setback requirements, GRFA allowances, and landscape area provisions. The proposed density language in the proposed ordinance is “No limitation on the number of dwelling units per acre permitted.” If the Town Council is uncomfortable with this language, the language could be revised to say “Limited only by the application of other development standards including Height and Bulk, Gross Residential Floor Area, Site Coverage, Setbacks, and Landscaping and Site Development.” The analyses provided by Public Works and ERWSD are based upon the notion that allowing dwelling units to be treated like timeshare and fractional units will generate new density in Lionshead not previously anticipated, ignoring the fact that timeshare and fractional units can already be developed to the same degree that dwelling units are being proposed. Both of these analyses conclude that neither traffic or wastewater demands should be a critical reason to not approve the proposed amendment. There are impacts that may Page of 1 2 PO Box 4777 Eagle, Colorado 81631 970.376.3318 www.mpgvail.com June 4, 2019 - Page 181 of 242 need to be addressed as development applications are reviewed, but those are evaluated on a case by case basis under the code requirement of Mitigation of Development Impacts. The traffic analysis shows that there could be an increase in pedestrian and vehicular conflicts on East Lionshead Circle. The conflicts that exist there today are largely caused by private shuttle vans, town buses, and random traffic likely engaged in drop-off and pick-up activities. Residential traffic only accounts for about 30% of the traffic. Any development application submitted would need to address traffic issues as part of the review process just like any other development project would. Based on the analysis that has been done, the conclusion is that this amendment will be a positive change for the Lionshead area, will encourage redevelopment, and can be accommodated without significant impacts to traffic and wastewater treatment. We encourage you to approve Ordinance No. 4 on second reading. Sincerely, Dominic F. Mauriello, AICP Principal Page of 2 2 June 4, 2019 - Page 182 of 242 Use Average unit size:1,600 Name of Development Dwelling Units Lodge Dwelling Units EHUs Hotel Fractional Total Units of All Types Lot Size (acres) Allowable GRFA (Sq. Ft.) Approximate Year Built or Redeveloped Redevelopment Challenges Likelihood of Redevelopment Number of Total Possible units based on GRFA and Average Unit Size (enter average unit size above) EHU Requirement (10% net new GRFA) with Avg Unit Size of 800 sq. ft. Net New Free Market Units Free Market + EHU Antlers 96 0 9 0 0 105 1.21 131,769 2005 Recent Redevelopment/special formula Low 164.7 6.0 59.7 65.7 Arrabelle 67 0 0 36 0 103 2.93 319,077 2008 Recent Redevelopment Low 199.4 19.3 96.4 115.7 Concert Hall Plaza 0 0 0 0 0 0 0.26 28,314 1978 Constrained Medium 17.7 3.5 17.7 21.2 Enzian 12 0 0 0 0 12 0.3 32,670 1974 Ownership Structure, Recent Remodel Low 20.4 1.7 8.4 10.1 Elevation(proposed)9 0 3 0 0 12 0.31 33,759 Proposed Just being built Low 21.1 1.8 9.1 10.9 Evergreen Lodge 19 0 0 128 0 147 2.45 266,805 1974 High 166.8 4.0 19.8 23.7 First Chair 0 0 32 0 0 32 0.75 81,675 2011 Recent Redevelopment Low 51.0 3.8 19.0 22.9 Landmark 73 3 2 0 0 78 1.51 164,439 2010 Recent Redevelopment Low 102.8 5.0 24.8 29.7 Lift House 1 45 0 0 0 46 0.44 47,916 1973 all units are currently small* special formula High 59.9 1.4 13.9 15.3 Lion Square Lodge North 36 0 0 0 0 36 0.94 102,366 2010 Recent Redevelopment Low 64.0 5.6 28.0 33.6 Lion Square Lodge South and East 66 2 0 31 0 99 1.81 197,109 2004 (remodel)Recent Remodel but with limited new units Low 123.2 4.8 24.2 29.0 Lions Pride Building 0 0 0 0 0 0 0.83 90,387 1975 High 56.5 11.3 56.5 67.8 Lionshead Arcade 14 0 0 0 0 14 0.32 34,848 1971 High 21.8 1.6 7.8 9.3 Lionshead Centre 25 0 0 0 0 25 0.9 98,010 1970 Ownership Structure High 61.3 7.3 36.3 43.5 Lodge at Lionshead I 17 0 0 0 0 17 0.624 67,954 1970 Recent Remodel Low 42.5 5.1 25.5 30.6 Lodge at Lionshead II 19 6 0 0 0 25 0.745 81,131 1974 Recent Remodel Low 50.7 5.1 25.7 30.8 Lodge at Lionshead III 12 0 0 0 0 12 1.228 133,729 1978 High 83.6 14.3 71.6 85.9 Mark Lodge 13 0 0 42 0 55 0.89 96,921 1995 Location within Marriott Low 60.6 1.1 5.6 6.7 Montaneros 40 0 0 0 0 40 1.01 109,989 1972 Recent Remodel Medium 68.7 5.7 28.7 34.5 The Lion 53 4 1 0 10 68 1.57 170,973 2016 Recent Redevelopment Low 106.9 7.8 38.9 46.6 Tree Tops 29 0 0 0 0 29 0.9 98,010 1971 High 61.3 6.5 32.3 38.7 Vail 21 21 0 0 0 0 21 0.36 39,204 1972 Recent Remodel Medium 24.5 0.7 3.5 4.2 Vail International 56 0 0 0 0 56 1.83 199,287 1973 High 124.6 13.7 68.6 82.3 Vail Spa 55 0 0 0 0 55 3.21 349,569 1980 Recent Remodel Low 218.5 32.7 163.5 196.2 Vantage Point 47 9 0 0 9 65 1.53 166,617 1972 High 104.1 7.8 39.1 47.0 West Day Lot Subdivision (Marriott, Ritz, Gore Creek Residences)*122 0 0 276 45 443 6.82 742,698 2010 Recent Redevelopment Low 464.2 4.2 21.2 25.4 Westwind 35 0 0 0 0 35 0.87 94,743 1969 Medium 59.2 4.8 24.2 29.1 TOTAL 937 69 47 513 64 1,630 36.547 3,979,968 2,599.8 187 970 1,156 Total High 68 346 413 Total Medium 15 74 89 Total Low 104 550 654 TOTAL 187 970 1,156 June 4, 2019 - Page 183 of 242 MEMORANDUM TO: Chris Neubecker, Dominic Mauriello FROM: Jason Cowles, Len Wright DATE: 5/20/19 RE: Lionshead Mixed Use 1 Zone District The Mauriello Planning Group (MPG) submitted a draft zoning text amendment to the Town of Vail in November 2018 for the purpose of modifying the density requirements for the Lionshead Mixed Use 1 Zone District. MPG represents the Treetops Condominium Association which is requesting a text amendment to the zoning regulations to amend Section 12-7H-12: Density (Dwelling Units per Acre). The applicant is requesting that the density be changed to unlimited; but that all other zoning standards related to building height, GRFA, setbacks, parking, etc. remain unchanged. The amendment would not impact the overall size of the structure, but the number of dwelling units within the structure would be unlimited by zoning. ERWSD completed a Wastewater Master Plan Update in 2017 to plan for achieving regulatory compliance with new nutrient standards. The Master Plan allowed ERWSD to negotiate an alternative regulatory compliance schedule with the Colorado Department of Public Health and Environment at its wastewater treatment facilities in Vail, Avon and Edwards. The Plan recommended $105m (in 2017 dollars) in capital improvements to the District’s three wastewater treatment facilities and created an implementation schedule over the next 15 years that is designed to meet the new nutrient regulations while managing rate increases to customers. The capital improvement schedule resulting from this master planning effort is shown below in Figure 1. Note the alternative regulatory compliance schedule negotiated with the Colorado Department of Public Health and Environment (dates denoted on the top of the timeline with red lines). The Vail Wastewater Treatment Facility is due to be compliant by the end of 2032. The plan is based on assumed growth in Vail at 1.14% per year in wastewater generation. This growth factor was arrived at by looking at historic growth rates in the service area. While growth is considered in the Capital Improvement Schedule in Figure 1, actual growth may exceed projections as a result of the zone change, which would accelerate the need for the Vail project. If the Vail project is accelerated (due to start in 2029) the cost schedule will overlap with earlier projects, resulting in higher annual costs and compounded customer rate increases. If future real estate market forces drive unit density upwards in this Zone District beyond what was assumed for overall growth in the ERWSD Capital Improvement Program, it could effectively use capacity that would have been used to serve other growth areas in the service areas. While this is a hypothetical planning exercise, it is important to note that future market forces will drive when and where growth occurs. June 4, 2019 - Page 184 of 242 Figure 1. ERWSD Wastewater Treatment Capital Improvement Program, 2017 Master Plan Update. June 4, 2019 - Page 185 of 242 To: Community Development Department From: Public Works Department Date: 6-10-19 Subject: (PEC18-0041) LMU-1 Density The Town of Vail Public Works Department offers the following additional comments regarding the application to amend Section 12-7H-12, Density, Vail Town Code, to remove the dwelling units per acre maximum while maintaining the existing dimensional standards including GRFA and building height in the Lionshead Mixed Use-1 zone district. The application to remove the dwelling units per acre maximum could increase the number of dwelling units built in LMU-1 which could in turn have an impact on both pedestrian and vehicular traffic generated by future developments. That being said, the current LMU-1 zone district has no maximums on unit density for Accommodation Units, Fractional Fee Units, and Employee Housing Units, so it is difficult to make a black and white assumption on how many total net new traffic generating units may ultimately be proposed if the LMU-1 zone district is amended as proposed. As indicated in the comment memo dated January 28, 2019, the traffic generation assumptions within the adopted Vail Transportation Master Plan (VTMP) would largely go unchanged if this zoning change were approved. Therefore it is expected that the zoning change would not impact the VTMP recommendations along the South Frontage Road. However, this change could have some impacts to the local roadways, East Lionshead Circle and West Lionshead Circle. Town staff looked specifically at East Lionshead Circle, since it has much higher volumes of traffic and pedestrians, and could have the greatest potential for redevelopment. Based on the table developed by MPG, assuming 1600 square foot units, it was conservatively estimated that approximately 320 new units could be developed that would have access off East Lionshead Circle. If built, this could generate approximately 112 to 125 new vehicle trips during the PM peak hour (ITE: 0.5 per unit less 30% multimodal reduction, Actual Count Average: 0.39 per unit). There are currently approximately 400 peak PM hour vehicular trips on East Lionshead Circle, thus potentially increasing overall traffic by ~30%. The impacts on East Lionshead Circle that might be of concern include; June 4, 2019 - Page 186 of 242 Town of Vail Page 2 • Pedestrian Conflict Impacts: An increase of 112 new vehicle trips would have some impacts on the frequency of conflicts at the East Lionshead Circle crosswalk • Intersection Delay: An increase of 112 new vehicle trips will have a minimal impact to general roadway traffic delay, other than pedestrian conflicts mentioned above, however it will likely increase delay for left turns out of East Lionshead Circle. Pedestrian Conflict The town, in partnership with Treetops, acquired new traffic counts along East Lionshead Circle from the western most paver crosswalk to the Dobson Ice Arena, including pedestrian counts, on Saturday March 23rd. Based on this information we identified that approximately 1300 people cross East Lionshead Circle during a PM peak hour, while approximately 180 vehicles cross this crosswalk during the PM Peak hour. Of those 180 vehicles; • 34% are for Residential Development trips • 12% are Town Buses • 33% are Private Shuttles • 21% is other, likely unnecessary (See Attached Count Summary Map) The projected increase of 112 vehicular trips would increase the traffic going across this crosswalk to ~300 vehicles per hour at PM Peak hour. This would increase the average number of vehicles from crossing the crosswalk from one every 20 seconds to one ever 12 seconds, thus increasing the frequency of pedestrian conflicts but not necessarily the severity. Alternatives to lessening this impact could include: • Gating this lower section of East Lionshead Circle at the existing median thus eliminating unnecessary traffic (~37 PM Peak Hour), and slowing traffic down before entering the crosswalk from the west. • Relocating Vail International’s access point to the Frontage Road, if possible, as contemplated as an idea in the Civic Area Plan, thus reducing PM peak hour trips by 23 existing and 29 of the net new potential trips. (~52 PM Peak Hour) • Relocating Shuttles (unlikely) • Limiting development along East Lionshead Circle Intersection Delay Town staff has reviewed the recent previous traffic studies completed by Fox Tuttle Hernandez Transportation Group for a separate development along East Lionshead Circle, which provides additional insight on the impacts to the left turn movement. • East Lionshead Circle has plenty of capacity to handle the existing and potential through traffic. • At PM peak hour East Lionshead Circle’s traffic volume is approximately 400. June 4, 2019 - Page 187 of 242 Town of Vail Page 3 • Of that 400, there are currently approximately 120 vehicles making a left out of East Lionshead Circle. • This existing volume combined with the corresponding traffic volumes along the South Frontage Road results in a LOS of D for the left turn movement, with a queue of 1 to 2 cars, and a ~30 second delay. • The potential 112 new trips would yield about 30 additional vehicles making a left turn movement. With these additional trips the LOS would remain a D, but with a queue of 3-4 cars, and a ~40 second delay. This could be alleviated by eliminating left turns for passenger cars. Also, a roundabout has been studied at this location in the past and it is extremely difficult to fit in, requiring 16’+ walls along the interstate. Adding this amount of additional trips will have minimal impacts to the functionality of the East Lionshead Circle intersection. Though any additional trips above the projected 30 may require the left turn bay to be increased and may have further delay impacts on the In-Town bus route. Conclusion In general, East Lionshead Circle will likely be able to handle the projected traffic with minimal impact other than an increased frequency in pedestrian conflicts at the existing crosswalks. June 4, 2019 - Page 188 of 242 © 2018 Google © 2018 Google © 2018 Google June 4, 2019 - Page 189 of 242 June 4, 2019 - Page 190 of 242 TO: Planning and Environmental Commission FROM: Community Development Department DATE: January 28, 2019 SUBJECT: A request for a recommendation to the Vail Town Council for a Prescribed Regulations Amendment pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 12-7H-12, Density, Vail Town Code, to remove the dwelling units per acre maximum while maintaining the existing dimensional standards including GRFA and building height in the Lionshead Mixed Use-1 zone district. (PEC18-0041) Applicant: Treetops Condominium Association, represented by Mauriello Planning Group Planner: Chris Neubecker I. SUMMARY The applicant, the Treetops Condominium Association, represented by Mauriello Planning Group, requests the review of a prescribed regulation amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 12-7H-12, Density, Vail Town Code, to remove the dwelling units per acre maximum while maintaining the existing dimensional standards including GRFA and building height in the Lionshead Mixed Use-1 zone district. Based upon Staff’s review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission (PEC) forward a recommendation of approval to the Vail Town Council, of this application, subject to the findings noted in Section VIII of this memorandum. A vicinity map (Attachment A) and the applicant’s narrative (Attachment B). II. DESCRIPTION OF REQUEST The applicant is proposing to alter the density (dwelling units per acre) maximum within the Lionshead Mixed Use-1 zone district. As proposed, the change would entail removing the maximum allowed number of dwelling units per acre, so that there would be no cap on density. No changes are proposed to the existing limits on Gross Residential Floor Area (GRFA), building heights, setbacks, site coverage, landscaping, June 4, 2019 - Page 191 of 242 or any other dimensional standard. The proposed text amendment would apply only to properties within the Lionshead Mixed Use-1 (LMU-1) zone district. This zone district is bounded (approximately) on the north side by S. Frontage Road and E. Lionshead Circle, on the south side by Gore Creek, on the west at the intersection of S. Frontage Road and Forest Road, and on the east by Dobson Ice Arena and the Vail Library. (The Lionshead Parking Structure, Dobson Ice Arena, and Vail Library are in the General Use (GU) zone district, and are not impacted by this proposal.) Please see Attachment A – Vicinity Map, for more details. III. BACKGROUND Prior to adoption of the current zoning (1999) and the Lionshead Redevelopment Master Plan (LRMP), the zoning in the Lionshead area included several zone districts (See Attachment F- Previous Zoning Map). The following zone districts were in place in the areas currently zoned Lionshead Mixed Use-1: • Commercial Core 1(CC1) • High Density Multiple Family (HDMF) • Medium Density Multiple Family (MDMF) • Special Development District (SDD) • Parking (P) On December 15, 1998 the Vail Town Council adopted the Lionshead Redevelopment Master Plan via Resolution No. 14, Series of 1998. The purpose of the Plan was “to encourage redevelopment and new development initiatives within the Lionshead study area.” Lionshead was recognized at the time to lack the economic vitality of Vail Village and failed to offer a world-class resort experience. Lionshead lacked growth in accommodation units, had a poor quality retail experience, uninteresting pedestrian environment, mediocre architectural character and was absent incentives for redevelopment. The adopted LRMP created the incentive for redevelopment, and to date, several properties have redeveloped or new construction has been completed. On April 6, 1999, the Vail Town Council adopted Ordinance No. 3, Series of 1999 which amended the zoning regulations by creating two new zone districts, Lionshead Mixed Use-1 and Lionshead Mixed Use-2 in order to implement the Lionshead Redevelopment Master Plan. On April 6, 1999 the Vail Town Council adopted Ordinance No. 4, Series of 1999, which amended the official zoning map for the Town of Vail and rezoned most of the land within the Lionshead area to Lionshead Mixed Use-1 zone district. Town of Vail Page 2 June 4, 2019 - Page 192 of 242 IV. PROPOSED TEXT AMENDMENT LANGUAGE The Prescribed Regulation Amendment is proposed as follows: EXISTING LANGUAGE: 12-7H-12: DENSITY (DWELLING UNITS PER ACRE): Up to a thirty three percent (33%) increase over the existing number of dwelling units on a property or thirty five (35) dwelling units per acre, whichever is greater, shall be allowed. For the purpose of calculating density, employee housing units, accommodation units, attached accommodation units, timeshare units, and fractional fee club units shall not be counted as dwelling units. Additionally, a "lodge dwelling unit", as defined herein, shall be counted as twenty five percent (25%) of a dwelling unit for the purpose of calculating density. PROPOSED LANGUAGE: 12-7H-12: DENSITY (DWELLING UNITS PER ACRE): There is no density limitation. V. ROLES OF REVIEWING BODIES Order of Review: Generally, text amendment applications will be reviewed by the Planning and Environmental Commission and the Commission will forward a recommendation to the Town Council. The Town Council will then review the text amendment application. Planning and Environmental Commission: The Planning and Environmental Commission is responsible for the review of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code, and forwarding of a recommendation to the Town Council. Design Review Board: The Design Review Board has no review authority over a text amendment to the Vail Town Code. Town Council: The Town Council is responsible for final approval, approval with modifications, or denial of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code. Staff: The Town Staff facilitates the application review process. Staff reviews the submitted application materials for completeness and general compliance with the appropriate requirements of the Town Code. Staff also provides the Planning and Environmental Town of Vail Page 3 June 4, 2019 - Page 193 of 242 Commission a memorandum containing a description and background of the application; an evaluation of the application in regard to the criteria and findings outlined by the Town Code; and a recommendation of approval, approval with modifications, or denial. VI. APPLICABLE PLANNING DOCUMENTS Staff believes that following provisions of the Vail Town Code, Vail Land Use Plan, and Lionshead Redevelopment Master Plan are relevant to the review of this proposal: Title 12, Zoning Regulations, Vail Town Code CHAPTER 12-1, TITLE, PURPOSE AND APPLICABILITY (in part) Section 12-1-2: Purpose: A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off-street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with Municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the Town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. Town of Vail Page 4 June 4, 2019 - Page 194 of 242 CHAPTER 12-2-2: DEFINITIONS OF WORDS AND TERMS (in part) ACCOMMODATION UNIT: Any room or group of rooms without "kitchen facilities", as defined herein, which are designed for temporary occupancy by visitors, guests, individuals, or families on a short term rental basis, and accessible from common corridors, walks, or balconies without passing through another accommodation unit, limited service lodge unit, fractional fee club unit or dwelling unit. An accommodation unit is not intended for permanent residency and shall not be subdivided into an individual condominium unit, pursuant to title 13, "Subdivision Regulations", of this code. ACCOMMODATION UNIT, ATTACHED: A room, without kitchen facilities, connected to a dwelling unit within a multiple-family building designed for or adapted to occupancy by guests which is accessible from a common corridor, walk, or balcony without passing through another accommodation unit, attached accommodation unit, or dwelling unit. DENSITY CONTROL: Any requirement of this title that regulates the number or size of dwelling units per unit of land. DEVELOPMENT LOT: A delineation of property that may include one or more structures and/or lot(s) that collectively share dimensional and/or design standards or guidelines. Examples include, but are not limited to, a duplex property containing two (2) dwelling units, a condominium complex of one or more buildings or a multi-unit townhome style development that share dimensional (GRFA, site coverage, etc.) and/or design (unified architectural and landscape design) standards or guidelines. DWELLING UNIT: Any room or group of rooms in a two-family or multiple-family building with kitchen facilities designed for or used by one family as an independent housekeeping unit. EMPLOYEE HOUSING UNIT (EHU): A dwelling unit which shall not be leased or rented for any period less than thirty (30) consecutive days, and shall be occupied by at least one person who is an employee. For the purposes of this definition "employee" shall mean a person who works an average of thirty (30) hours per week or more on a year round basis in Eagle County, Colorado. FRACTIONAL FEE: A tenancy in common interest in improved real property, including condominiums, created or held by persons, partnerships, corporations, or joint ventures or similar entities, wherein the tenants in common have formerly arranged by oral or written agreement or understanding, either recorded or unrecorded, allowing for the use and occupancy of the property by one or more cotenants to the exclusion of one or more cotenants during any period, whether annually reoccurring or not which is binding upon any assignee or future owner of a fractional fee interest or if such agreement continues to be in any way binding or effective upon any cotenant for the sale of any interest in the property. Town of Vail Page 5 June 4, 2019 - Page 195 of 242 FRACTIONAL FEE CLUB: A fractional fee project in which each dwelling unit, pursuant to recorded project documentation as approved by the town of Vail, has no fewer than six (6) and no more than twelve (12) owners per unit and whose use is established by a reservation system and is managed on site with a front desk operating twenty four (24) hours a day, seven (7) days a week providing reservation and registration capabilities. The project shall include, or be proximate to transportation, retail shops, eating and drinking establishments, and recreation facilities. FRACTIONAL FEE CLUB UNIT: An individual dwelling unit in a fractional fee club described as such in the project documentation and not an accommodation unit within the fractional fee club. No offer of a fractional fee club unit shall be made except pursuant to an application for registration and certification as a subdivision developer of a timeshare program or an exemption from registration approved by the state of Colorado real estate commission pursuant to Colorado Revised Statutes 12-61-401 et seq., and the rules and regulations promulgated pursuant thereto. Within ten (10) days after receipt of a written request, the developer of a fractional fee club unit shall provide to the staff of the department of community development a copy of the application or request for exemption filed with the state of Colorado real estate commission and/or evidence of approval of the application or request for exemption. FULL TIME EMPLOYEE: A person who works an average of thirty (30) hours per week or more on a year round basis in Eagle County, Colorado. LODGE DWELLING UNIT: A small dwelling unit with limited kitchen and floor area and which contains six hundred fifty (650) square feet or less of floor area and is intended to be rented on a short term basis. Article H: Lionshead Mixed Use 1 (LMU-1) District 12-7H-1: PURPOSE: The Lionshead mixed use 1 district is intended to provide sites for a mixture of multiple- family dwellings, lodges, hotels, fractional fee clubs, timeshares, lodge dwelling units, restaurants, offices, skier services, and commercial establishments in a clustered, unified development. Lionshead mixed use 1 district, in accordance with the Lionshead redevelopment master plan, is intended to ensure adequate light, air, open space and other amenities appropriate to the permitted types of buildings and uses and to maintain the desirable qualities of the zone district by establishing appropriate site development standards. This zone district is meant to encourage and provide incentives for redevelopment in accordance with the Lionshead redevelopment master plan. This zone district was specifically developed to provide incentives for properties to redevelop. The ultimate goal of these incentives is to create an economically vibrant lodging, housing, and commercial core area. The incentives in this zone district include increases in allowable gross residential floor area, building height, and density over the previously established zoning in the Lionshead redevelopment master plan study area. Town of Vail Page 6 June 4, 2019 - Page 196 of 242 The primary goal of the incentives is to create economic conditions favorable to inducing private redevelopment consistent with the Lionshead redevelopment master plan. Additionally, the incentives are created to help finance public off site improvements adjacent to redevelopment projects. With any development/redevelopment proposal taking advantage of the incentives created herein, the following amenities will be evaluated: streetscape improvements, pedestrian/bicycle access, public plaza redevelopment, public art, roadway improvements, and similar improvements. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-2: PERMITTED AND CONDITIONAL USES; BASEMENT OR GARDEN LEVEL: A. Permitted Uses: The following uses shall be permitted in basement or garden levels within a structure: Banks and financial institutions. Child daycare centers. Commercial ski storage/ski club. Eating and drinking establishments. Employee housing units, as further regulated by chapter 13 of this title. Personal services and repair shops. Professional offices, business offices and studios. Public or private lockers and storage. Recreation facilities. Retail establishments. Skier ticketing, ski school and skier services. Travel and ticket agencies. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. B. Conditional Uses: The following uses shall be permitted in basement or garden levels within a structure, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Accommodation units. Town of Vail Page 7 June 4, 2019 - Page 197 of 242 Attached accommodation units. Conference facilities and meeting rooms. Liquor stores. Lodges. Major arcades. Multiple-family residential dwelling units, timeshare units, fractional fee clubs, and lodge dwelling units. Radio, TV stores, and repair shops. Religious institutions. Theaters. Additional uses determined to be similar to conditional uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. (Ord. 2(2016) § 12: Ord. 8(2014) § 3: Ord. 1(2008) § 16: Ord. 39(2007) § 3) 12-7H-3: PERMITTED AND CONDITIONAL USES; FIRST FLOOR OR STREET LEVEL: A. Permitted Uses: The following uses shall be permitted on the first floor or street level within a structure: Banks, with walk-up teller facilities. Child daycare centers. Eating and drinking establishments. Employee housing units, as further regulated by chapter 13 of this title. Recreation facilities. Retail stores and establishments. Skier ticketing, ski school and skier services. Travel and ticket agencies. Town of Vail Page 8 June 4, 2019 - Page 198 of 242 Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. B. Conditional Uses: The following uses shall be permitted on the first floor or street level floor within a structure, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Accommodation units. Attached accommodation units. Beauty and barber shops. Conference facilities and meeting rooms. Electronics sales and repair shops. Financial institutions, other than banks. Liquor stores. Lodges. Major arcades. Multiple-family residential dwelling units, timeshare units, fractional fee clubs, and lodge dwelling units. Religious institutions. Temporary business offices. Theaters. Additional uses determined to be similar to conditional uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. (Ord. 2(2016) § 13: Ord. 6(2012) § 2) 12-7H-4: PERMITTED AND CONDITIONAL USES; SECOND FLOOR AND ABOVE: A. Permitted Uses: The following uses shall be permitted on those floors above the first floor within a structure: Accommodation units. Attached accommodation units. Town of Vail Page 9 June 4, 2019 - Page 199 of 242 Employee housing units, as further regulated by chapter 13 of this title. Lodges. Multiple-family residential dwelling units, lodge dwelling units. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. B. Conditional Uses: The following uses shall be permitted on second floors and higher above grade, subject to the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Banks and financial institutions. Child daycare centers. Conference facilities and meeting rooms. Eating and drinking establishments. Electronics sales and repair shops. Fractional fee clubs. Liquor stores. Personal services and repair shops. Professional offices, business offices and studios. Recreation facilities. Religious institutions. Retail establishments. Skier ticketing, ski school and skier services. Theaters. Timeshare units. Additional uses determined to be similar to conditional uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. (Ord. Town of Vail Page 10 June 4, 2019 - Page 200 of 242 2(2016) § 14: Ord. 1(2008) § 16: Ord. 29(2005) § 24: Ord. 24(2005) § 3: Ord. 18(2005) § 2: Ord. 6(2000) § 2: Ord. 3(1999) § 1) 12-7H-5: CONDITIONAL USES; GENERALLY (ON ALL LEVELS OF A BUILDING OR OUTSIDE OF A BUILDING): The following conditional uses shall be permitted, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and breakfasts, as further regulated by section 12-14-18 of this title. Brewpubs. Coin operated laundries. Commercial storage. Communications antennas and appurtenant equipment. Private outdoor recreation facilities, as a primary use. Public buildings, grounds, and facilities. Public or private parking lots. Public park and recreation facilities. Public utility and public service uses. Seasonal uses or structures utilized for more than fourteen (14) days. Single-family residential dwellings. Ski lifts and tows. Television stations. Two-family residential dwellings. Additional uses determined to be similar to conditional uses described in this section, in accordance with the provisions of section 12-3-4 of this title. (Ord. 12(2008) § 17) 12-7H-6: ACCESSORY USES: The following accessory uses shall be permitted in the Lionshead mixed use 1 Town of Vail Page 11 June 4, 2019 - Page 201 of 242 district: Home occupations, subject to issuance of a home occupation permit in accordance with the provisions of section 12-14-12 of this title. Loading and delivery and parking facilities customarily incidental and accessory to permitted and conditional uses. Minor arcades. Offices, lobbies, laundry, and other facilities customarily incidental and accessory to hotels, lodges, and multiple-family uses. Outdoor dining decks and patios. Swimming pools, tennis courts, patios or other recreation facilities customarily incidental to permitted residential or lodge uses. Other uses customarily incidental and accessory to permitted or conditional uses, and necessary for the operation thereof. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-7: EXTERIOR ALTERATIONS OR MODIFICATIONS: A. Review Required: The construction of a new building or the alteration of an existing building that is not a major exterior alteration as described in subsection B of this section shall be reviewed by the design review board in accordance with chapter 11 of this title. 1. Submittal Items Required: The submittal items required for a project that is not a major exterior alteration shall be provided in accordance with section 12-11-4 of this title. B. Major Exterior Alteration: The construction of a new building or the alteration of an existing building which adds additional dwelling units, accommodation units, fractional fee club units, timeshare units, any project which adds more than one thousand (1,000) square feet of commercial floor area or common space, or any project which has substantial off site impacts (as determined by the administrator) shall be reviewed by the planning and environmental commission as a major exterior alteration in accordance with this chapter and section 12-3-6 of this title. Any project which requires a conditional use permit shall also obtain approval of the planning and environmental commission in accordance with chapter 16 of this title. Complete applications for major exterior alterations shall be submitted in accordance with administrative schedules developed by the department of community development for planning and environmental commission and design review board review. Town of Vail Page 12 June 4, 2019 - Page 202 of 242 1. Submittal Items Required, Major Exterior Alteration: The following submittal items are required: a. Application: An application shall be made by the owner of the building or the building owner's authorized agent or representative on a form provided by the administrator. Any application for condominiumized buildings shall be authorized by the condominium association in conformity with all pertinent requirements of the condominium association's declarations. b. Application; Contents: The administrator shall establish the submittal requirements for an exterior alteration or modification application. A complete list of the submittal requirements shall be maintained by the administrator and filed in the department of community development. Certain submittal requirements may be waived and/or modified by the administrator and/or the reviewing body if it is demonstrated by the applicant that the information and materials required are not relevant to the proposed development or applicable to the planning documents that comprise the Vail comprehensive plan. The administrator and/or the reviewing body may require the submission of additional plans, drawings, specifications, samples and other materials if deemed necessary to properly evaluate the proposal. C. Work Sessions/Conceptual Review: If requested by either the applicant or the administrator, submittals may proceed to a work session with the planning and environmental commission, a conceptual review with the design review board, or a work session with the town council. D. Hearing: The public hearing before the planning and environmental commission shall be held in accordance with section 12-3-6 of this title. The planning and environmental commission may approve the application as submitted, approve the application with conditions or modifications, or deny the application. The decision of the planning and environmental commission may be appealed to the town council in accordance with section 12-3-3 of this title. E. Lapse Of Approval: Approval of an exterior alteration as prescribed by this article shall lapse and become void two (2) years following the date of approval by the design review board unless, prior to the expiration, a building permit is issued and construction is commenced and diligently pursued to completion. Administrative extensions shall be allowed for reasonable and unexpected delays as long as code provisions affecting the proposal have not changed. (Ord. 29(2005) § 24: Ord. 5(2003) § 11: Ord. 8(2001) § 2: Ord. 3(1999) § 1) 12-7H-8: COMPLIANCE BURDEN: It shall be the burden of the applicant to prove by a preponderance of the evidence before the planning and environmental commission and the design review board that the proposed exterior alteration or new development is in compliance with the purposes of the Lionshead mixed use 1 district, that the proposal is consistent with applicable Town of Vail Page 13 June 4, 2019 - Page 203 of 242 elements of the Lionshead redevelopment master plan and that the proposal does not otherwise have a significant negative effect on the character of the neighborhood, and that the proposal substantially complies with other applicable elements of the Vail comprehensive plan. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-9: LOT AREA AND SITE DIMENSIONS: The minimum lot or site area shall be ten thousand (10,000) square feet of buildable area. (Ord. 3(1999) § 1) 12-7H-10: SETBACKS: The minimum building setbacks shall be ten feet (10') unless otherwise specified in the Lionshead redevelopment master plan as a build to line. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-11: HEIGHT AND BULK: Buildings shall have a maximum average building height of seventy one feet (71') with a maximum height of 82.5 feet, as further defined by the Lionshead redevelopment master plan. All development shall comply with the design guidelines and standards found in the Lionshead redevelopment master plan. Flexibility with the standard, as incorporated in the Lionshead redevelopment master plan, shall be afforded to redevelopment projects which meet the intent of design guidelines, as reviewed and approved by the design review board. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-12: DENSITY (DWELLING UNITS PER ACRE): Up to a thirty three percent (33%) increase over the existing number of dwelling units on a property or thirty five (35) dwelling units per acre, whichever is greater, shall be allowed. For the purpose of calculating density, employee housing units, accommodation units, attached accommodation units, timeshare units, and fractional fee club units shall not be counted as dwelling units. Additionally, a "lodge dwelling unit", as defined herein, shall be counted as twenty five percent (25%) of a dwelling unit for the purpose of calculating density. (Ord. 18(2005) § 2: Ord. 31(2001) § 5: Ord. 3(1999) § 1) 12-7H-13: GROSS RESIDENTIAL FLOOR AREA (GRFA): Up to two hundred fifty (250) square feet of gross residential floor area shall be allowed for each one hundred (100) square feet of buildable site area, or an increase of thirty three percent (33%) over the existing GRFA found on the property, whichever is greater. Multiple-family dwelling units in this zone district shall not be entitled to additional gross residential floor area under section 12-15-5, "Additional Gross Residential Floor Area (250 Ordinance)", of this title. (Ord. 3(1999) § 1) Town of Vail Page 14 June 4, 2019 - Page 204 of 242 12-7H-14: SITE COVERAGE: Site coverage shall not exceed seventy percent (70%) of the total site area, unless otherwise specified in the Lionshead redevelopment master plan. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-15: LANDSCAPING AND SITE DEVELOPMENT: At least twenty percent (20%) of the total site area shall be landscaped, unless otherwise specified in the Lionshead redevelopment master plan. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-16: PARKING AND LOADING: Off street parking and loading shall be provided in accordance with chapter 10 of this title. At least one-half (1/2) of the required parking shall be located within the main building or buildings. (Ord. 3(1999) § 1) 12-7H-17: LOCATION OF BUSINESS ACTIVITY: A. Limitations; Exception: All offices, businesses and services permitted by zone district shall be operated and conducted entirely within a building, except for permitted unenclosed parking or loading areas, the outdoor display of goods, or outdoor restaurant seating. B. Outdoor Displays: The area to be used for outdoor display must be located directly in front of the establishment displaying the goods and entirely upon the establishment's own property. Sidewalks, building entrances and exits, driveways and streets shall not be obstructed by outdoor display. (Ord. 3(1999) § 1) 12-7H-18: MITIGATION OF DEVELOPMENT IMPACTS: Property owners/developers shall also be responsible for mitigating direct impacts of their development on public infrastructure and in all cases mitigation shall bear a reasonable relation to the development impacts. Impacts may be determined based on reports prepared by qualified consultants. The extent of mitigation and public amenity improvements shall be balanced with the goals of redevelopment and will be determined by the planning and environmental commission in review of development projects and conditional use permits. Mitigation of impacts may include, but is not limited to, the following: employee housing per the town's current employee housing policy, roadway improvements, pedestrian walkway improvements, streetscape improvements, stream tract/bank improvements, public art improvements, and similar improvements. The intent of this section is to only require mitigation for large scale redevelopment/development projects which produce substantial off site impacts. (Ord. 14(2006) § 3: Ord. 29(2005) § 24: Ord. 3(1999) § 1) Town of Vail Page 15 June 4, 2019 - Page 205 of 242 Vail Land Use Plan 1. General Growth / Development 1.1. Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.3. The quality of development should be maintained and upgraded whenever possible. 1.12 Vail should accommodate most of the additional growth in existing developed areas (infill areas). 2. Village Core / Lionshead 4.2 Increased density in the Core areas is acceptable so long as the existing character of each area is preserved through the implementation of the Urban Design Guide Plan and the Vail Village Master Plan. 5. Residential 5.1 Additional residential growth should continue to occur primarily in existing, platted areas and as appropriate in new areas where high hazards do not exist. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. Lionshead Redevelopment Master Plan 2.1 Purpose of the Master Plan This master plan was initiated by the Town of Vail to encourage redevelopment and new development initiatives within the Lionshead study area. Both public and private interests have recognized that Lionshead today lacks the economic vitality of Vail Village, its neighboring commercial district, and fails to offer a world-class resort experience. Lionshead’s economic potential has been inhibited by a number of recurrent themes: lack of growth in accommodation units (“hot beds”), poor retail quality, the apparent deterioration of existing buildings, an uninteresting and disconnected pedestrian environment, mediocre architectural character, and the absence of incentives for redevelopment. Redevelopment is critical for Vail and Lionshead if the community is to remain a competitive four-season resort. Other resorts are spending millions of dollars to upgrade their facilities in order to attract more visitors year-round. Growth in the number of skiers annually has slowed to one to two percent, intensifying competition for market share. Skiers are spending less time skiing and more time shopping, dining out, and enjoying other off-mountain activities. As a result, the demand for quality retail shopping and a Town of Vail Page 16 June 4, 2019 - Page 206 of 242 greater diversity of experiences has dramatically increased. All of these are sorely in need of improvement in Lionshead. Vail, and specifically Lionshead, will fall behind if the community fails to upgrade the quality of its facilities and correct the existing flaws in its primary commercial nodes. This master plan, developed over a period of two years and with extensive involvement by the community, is a comprehensive guide for property owners proposing to undertake development or redevelopment of their properties and the municipal officials responsible for planning public improvements. The plan outlines the Town’s objectives and goals for the enhancement of Lionshead and proposes recommendations, incentives, and requirements for redevelopment and new development of public and private properties. It also recommends specific public improvement projects that are strategically important to the future success of Lionshead. The master plan is intended to provide direction over the next 15 to 20 years. 2.3.1 Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. 9.5.2 Rezoning Zoning districts and land use regulations relevant to the Lionshead study area should be updated and modified to reflect the recommendations contained in the master plan and facilitate their implementation. The rezoning process should include the creation of relevant impact fees that would require development to contribute toward the funding of required public improvements associated with the development. VII. CRITERIA FOR REVIEW 1. The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and Staff finds that the applicant’s proposed text amendment furthers the general and specific purposes of the zoning regulations by promoting the redevelopment of residential property, and in some cases the associated commercial spaces, within the Lionshead base area. The purpose of the Lionshead Redevelopment Plan is to promote redevelopment, and one way to accomplish this goal is to provide incentives and flexibility for private sector investments. The proposed changes will provide additional motivation and options for redevelopment above those already existing. The removal of the density cap should have no visual impact on Lionshead, since the existing regulations for GRFA, building height, setbacks, site coverage, parking and design requirements will remain. Town of Vail Page 17 June 4, 2019 - Page 207 of 242 Staff finds that this criterion has been met. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and Staff finds that the proposed prescribed regulations amendments will better implement or achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan. The existing zoning regulations for the Lionshead Mixed Use-1 zone district, including the incentives for higher density development, have resulted in the redevelopment of some properties. However, several other properties have not been redeveloped. The propose density changes could create enough incentive and flexibility to spur some owners and associations to take on a redevelopment project. While not all older properties will take advantage of this proposed change to the allowed density, the proposed text amendment increases the likelihood for redevelopment. Those properties that do redevelop will contribute to advancing the goals for renewal in this important core area of the community while still meeting the existing dimensional requirements such as GRFA, building height, setbacks, site coverage, landscaping and parking. Staff finds that this criterion has been met. 3. The text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and Conditions have changed since the adoption of the Lionshead Mixed Use-1 zone district, which is shown by the number of properties that remain in a deteriorated condition. When the existing Lionshead Mixed Use-1 zone district was adopted, there was an expectation that unlimited density for timeshares, accommodation units and fractional fee units would help to encourage redevelopment. For some of these uses, the market demand has waned. For example, timeshare and fractional fee units are not nearly as popular today as they once were, and many units that were built now sit empty and unsold. The existing regulation is no longer appropriate or is inapplicable if it is not achieving the desire policy result. Removal of the density cap is one more step that can be taken to provide flexibility and options to encourage owners to upgrade their properties. The existing regulation is not fully achieving its desired outcome. Staff finds that this criterion has been met. Town of Vail Page 18 June 4, 2019 - Page 208 of 242 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and Staff believes this text amendment will ensure a harmonious, convenient, workable relationship among land use regulations consistent with the Town's development objectives. Specifically, the proposed text amendment will only change the allowed number of dwelling units. No changes are proposed to the GRFA, building height, setbacks, parking, site coverage or design requirements. As a result, the exterior of a new building reviewed under the proposed regulations will need to meet the same regulations that currently apply. Under existing regulations, a building can be constructed that looks identical to the building that would be allowed with the proposed text amendment. Staff finds that this criterion has been met. 5. Such other factors and criteria the planning and environmental commission and/or council deem applicable to the proposed text amendment. In addition to the considerations mentioned above, the PEC should consider the impact of the proposed text amendment on the capacity of the Town’s infrastructure, including roads, water and sewer. The proposed text amendment will allow for an increase in the total number of dwelling units within the Lionshead Mixed Use 1 zone district, which should also lead to an increase in the number of people living and staying in Lionshead. As a result, more traffic, water use, and wastewater generation is anticipated. As shown on the attached memo from the Eagle River Water and Sanitation District (ERWSD), the proposal to eliminate the density maximum could have future impacts on the capacity of the local sewer treatment plants. If the growth is greater than planned by ERWSD, then “wastewater flows could eventually exceed the treatment capacity of the Vail Wastewater Treatment Facility.” The Vail W astewater Treatment Facility is already at capacity during the peak period from Christmas through New Years week, when wastewater flows are diverted to the Avon Wastewater Treatment Facility. (Please see the attached memo from the Eagle River Water and Sanitation Districts (Attachment D). Increases in density could also have an impact on local traffic. As shown in the Town Engineer’s memo (Attachment E), the Vail Transportation Master Plan assumes 110 net new dwelling units within the Lionshead Mixed Use-1 zone district. If future development exceeds this number, and if a major redevelopment of the Lionshead Parking Structure moves forward, then the Vail Transportation Master Plan will need to be updated and additional carrying capacity of the transportation system may be required. Town of Vail Page 19 June 4, 2019 - Page 209 of 242 As proposed, there would be no limit on the number of dwelling units allowed. In reality, there will not be an unlimited number of units built. For a project that reaches its maximum GRFA, the size of the units must get smaller as the number of units increases. At some point, however, smaller units will not make economic sense to construct if they become too small to be comfortable. Also, staff does not see a fair comparison between unlimited dwelling units and unlimited EHUs, accommodation units, timeshares, or fractional fee club units. There is not a strong market demand for EHUs, AUs, timeshares, or fractional fee club units; there is, however, significant demand for dwelling units. As a result, staff believes that the applicant’s proposal will lead to more redevelopment and additional impacts on local infrastructure. Since the policy of the Lionshead Redevelopment Master Plan is to encourage redevelopment, staff considers this proposal in line with the policy objective of the plan. One benefit of the proposed text amendment may be that smaller units are more likely to be short-term rented than larger units. These “hot beds” are encouraged in the Lionshead Redevelopment Master Plan since they are assumed to contribute more effectively to the local economy by supporting local retail and restaurants. VIII. ENVIRONMENTAL IMPACTS The Community Development has not identified any significant environmental impacts with the proposed text amendment. More density may lead to additional traffic coming into the area, but higher density in already developed areas is usually associated with better walkability, and greater use of public transit. If this density helps to reduce development farther from the core of town, and reduces sprawl, then there may be a minor positive impact on the environment. Demolition and new construction, as well as the environmental costs of the resulting debris, plus the energy required to construct new buildings, will likely have some impacts on the environment. IX. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forward a recommendation of approval for the prescribed regulation amendment to the Vail Town Council. This recommendation is based upon the review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented. Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for a Prescribed Regulations Amendment pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 12- 7H-12, Density, Vail Town Code, to remove the dwelling units per acre maximum Town of Vail Page 20 June 4, 2019 - Page 210 of 242 while maintaining the existing dimensional standards including GRFA and building height in the Lionshead Mixed Use-1 zone district. (PEC18-0041) Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed prescribed regulation amendment, the Community Development Department recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section V this memorandum, and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12-1-2, Purpose, Vail Town Code; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." IX. ATTACHMENTS A. Vicinity Map B. Applicant’s Narrative C. Lionshead Analysis of Redevelopment by MPG D. Letter from Eagle River Water and Sanitation District E. Letter from Tom Kassmel, Town Engineer F. Previous Zoning Map – Lionshead Area G. Lionshead Redevelopment Master Plan (link) H. Vail Transportation Master Plan (link) Town of Vail Page 21 June 4, 2019 - Page 211 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Ordinance No. 9, S eries of 2019, Second Reading, Prescribed Regulations A mendment - S eparated Duplexes P RE S E NT E R(S ): E rik Gates, Community Development P lanner AC T IO N RE Q UE S T E D O F C O UNC I L: T he Vail Town Council is asked to approve, approve with modifications, or deny Ordinance No. 9, S eries of 2019 B AC K G RO UND: W ithin the TO V there are approximately 20 separated duplexes. Over time, adherence to the Unified Architectural and L andscape Design requirement has not been maintained on approximately 10 of them. T his has resulted largely from prior Design Review B oards not enforcing this provision of the code and has been exacerbated by staff approvals. B ecause the Code, as written, requires that this criteria be met and does not allow for any alteration that would increase the discrepancy between the structures, an exterior alteration of any size would require that one or both of the duplexes significantly redevelop their property to come into compliance with the Code. This results in a financial and logistical constraint that can result in separated duplexes choosing to make no updates their architectural design. AT TAC H ME N TS: Description Town Council Memorandum Attachement A - Ordinance No. 9, Series of 2019 Attachement B - Memorandum to P E C Attachment C - 4/22 P E C Minutes Attachment D - Qualifying Separated Duplexes List June 4, 2019 - Page 212 of 242 TO: Vail Town Council FROM: Community Development Department DATE: June 4, 2019 SUBJECT: Second Reading of Ordinance No. 9, Series of 2019, an ordinance to amend Section 14-10-6: Residential Development, Vail Town Code, pursuant to Section 12-3-7, Amendment, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes, and setting forth details in regard thereto. Applicant: Town of Vail Planner: Erik Gates I. SUMMARY The Town of Vail Community Development Department is requesting a second reading of Ordinance No. 9, Series of 2019, to amend Section 14-10-6: Residential Development, Vail Town Code, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes. On April 22, 2019, the Planning and Environmental Commission (PEC) forwarded a recommendation for approval, with the conditions that Staff present the inventory of qualifying properties to the Design Review Board and that the Design Review Board has final approval of the inventory and any future additions to the inventory, to the Vail Town Council for the proposed amendment, subject to the findings noted in Section VIII of the staff memorandum sent to the PEC (Attachment B). II. ACTION REQUESTED OF THE TOWN COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 9, Series of 2019, upon second reading. III. DESCRIPTION OF REQUEST The Community Development Department requests that the Vail Town Council consider the proposed prescribed regulations amendment to Section 14-10-6, Residential Development, pursuant to Section 12-3-7, Amendment, Vail Town Code. The amendment would also add a registry of separated duplexes that qualify for the exemption created by this amendment. The Community Development Department June 4, 2019 - Page 213 of 242 proposes the following additional subsection to be added to 14-10-6 Residential Development: D. Exemption. 1. Residential development meeting all the following criteria may be exempt from the unified architectural and landscaping design requirement of subsection A: a. Existing separated duplexes (where two dwelling units share a development lot but are not physically connected); b. That do not share a unified architectural and landscape design, as determined by the Design Review Board; and c. That received Design Review Board approval prior to May 7, 2019. 2. A registry of qualifying properties shall be kept by the Community Development Department and made publically available. 3. This Section shall not exempt separated duplexes from any other approval requirements of this Code, including without limitation Section 12-11-3. IV. BACKGROUND/SITUATION TO BE ADDRESSED Since as early as 1970, the Town of Vail has permitted, upon a determination by the Design Review Board (DRB), that the two units that make up a duplex may be physically separated if warranted by significant site constraints and are thus deemed separated. The determination that the two units may be separated is based on the following criteria in the Vail Town Code (Code) (emphasis added): 14-10-6: Residential Development B. The presence of significant site constraints may permit the physical separation of units and garages on a site. The determination of whether or not a lot has significant site constraints shall be made by the design review board. "Significant site constraints" shall be defined as natural features of a lot such as stands of mature trees, natural drainages, stream courses and other natural water features, rock outcroppings, wetlands, other natural features, and existing structures that may create practical difficulties in the site planning and development of a lot. Slope may be considered a physical site constraint that allows for the separation of a garage from a unit. It shall be the applicant's responsibility to request a determination from the design review board as to whether or not a site has significant site constraints before final design work on the project is presented. This determination shall be made at a conceptual review of the proposal based on review of the site, a detailed survey of the lot and a preliminary site plan of the proposed structure(s). While the two units do not share a single structure, they share a Development Lot and all dimensional standards including GRFA, pursuant to Title 12 Chapter 6 of the Code. The allowance of separation does not relieve applicants from the Unified Architectural Town of Vail Page 2 June 4, 2019 - Page 214 of 242 and Landscape Design requirements of the Code. This criterion requires residential development be designed in a manner that creates and architecturally integrated structure with unified site development. Per Code: 14-10-6: Residential Development A. …Unified architectural and landscape design shall include, but not be limited to, the use of compatible building materials, architectural style, scale, roof forms, massing, architectural details, site grading and landscape materials and features. Furthermore, when a separation request is granted the DRB may require additional means to create unified site development. These are described in the Code as: 14-6-10: Residential Development C. …In addition, the design review board may require that one or more of the following common design elements such as fences, walls, patios, decks, retaining walls, walkways, landscape elements, or other architectural features be incorporated to create unified site development. Within the TOV there are approximately 20 separated duplexes. Over time, adherence to the Unified Architectural and Landscape Design requirement has not been maintained on approximately 10 of them. This has resulted largely from prior Design Review Boards not enforcing this provision of the code and has been exacerbated by staff approvals. Because the Code, as written, requires that this criteria be met and does not allow for any alteration that would increase the discrepancy between the structures, an exterior alteration of any size would require that one or both of the duplexes significantly redevelop their property to come into compliance with the Code. This results in a financial and logistical constraint that can result in separated duplexes choosing to make no updates their architectural design. The proposed text amendment is intended to address situations where existing separated duplexes do not share a unified architectural design. These changes will not impact separated duplexes with a unified architectural design, or new separated duplexes that may be granted in the future. VI. CRITERIA FOR REVIEW Per Section 12-3-7, Amendment, Vail Town Code, before acting on a prescribed regulations amendment, the PEC and Town Council shall consider the following factors with respect to this proposal: 1. The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and Town of Vail Page 3 June 4, 2019 - Page 215 of 242 Staff finds the proposed zoning code amendments further the general and specific purposes of the zoning regulations by promoting the harmonious development of the Town's villages while maintaining established community qualities and economic values. The proposal also promotes the enhancement of the overall appearance of the Town. The proposal addresses a specific and limited situation that could result in adverse aesthetic conditions if remained unchecked. Without the text amendment, homeowners wishing to upgrade their residences may find it unfeasible to do so. Staff finds that this criterion has been met. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and Staff finds that the proposed prescribed regulations amendments will better implement or achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan. Specifically, in the Vail Land Use Plan’s adopted Goals and Policies, staff identified the following applicable statements: 1. General Growth /Development 1.1. Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. Staff finds that this criterion has been met. 3. The text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and Staff has found that due to the varying degree of adherence to Title 14, Chapter 10, Section 6, of the Code, conditions relating to the built environment of the town have substantially changed since the regulation’s adoption. This has resulted in a number of separated duplexes that would need to incur a significant financial burden to come into compliance with the subject regulation. While the subject regulation remains appropriate, it has become insufficient to deal with this reality. Staff finds that this criterion has been met. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and Town of Vail Page 4 June 4, 2019 - Page 216 of 242 Staff believes this text amendment will ensure a harmonious, convenient, workable relationship among land use regulations consistent with the Town's development objectives. Specifically, the proposed amendment has been narrowly tailored to affect only the design standards outlined in Title 14, Development Standards, for a limited number of separated duplexes. The objectives of this title read: Chapter 14-10-1: Purpose and Intent (in part) The Development standards will help protect property values, ensure the aesthetic quality of the community and ensure adequate development of property within the Town of Vail. Staff finds that the proposed amendment helps to protect individual property values and aesthetic quality by providing greater flexibility for these separated duplexes to redevelop with up-to-date architectural and landscape design. Furthermore, staff believes the limited number of properties affected by this amendment would not significantly increase visual clutter within the Town. Staff finds that this criterion has been met. 5. Such other factors and criteria the planning and environmental commission and/or council deem applicable to the proposed text amendment. VIII. STAFF RECOMMENDATION Should the Vail Town Council choose to approve Ordinance No. 9, Series of 2019, upon second reading, the Community Development Department recommends the Commission pass the following motion: "The Vail Town Council approves, on second reading, Ordinance No. 9, Series of 2019, a Prescribed Regulation Amendment to amend Section 14-10-6: Residential Development, Vail Town Code, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes, pursuant to Section 12-3-7, Amendment, Vail Town Code..” Should the Vail Town Council choose to approve Ordinance No. 9, Series of 2019, the Community Development Department recommends the Commission makes the following findings: “Based upon a review of the criteria outlined in Section VI of the April 22, 2019 of the staff memorandum to the Planning and Environmental Commission dated April 22, 2019,, and the evidence and testimony presented, the Vail Town Council finds: Town of Vail Page 5 June 4, 2019 - Page 217 of 242 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12-1-2, Purpose, Vail Town Code; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." IX. ATTACHMENTS A. Ordinance No. 9, Series of 2019 B. Staff Memorandum, PEC19-0012, April 22, 2019 C. PEC Minutes, April 22, 2019 D. List of Qualifying Separated Duplexes, April 2019 Town of Vail Page 6 June 4, 2019 - Page 218 of 242 ORDINANCE NO. 9 Series of 2019 AN ORDINANCE AMENDING TITLE 14, DEVELOPMENT STANDARDS, VAIL TOWN CODE, PURSUANT TO SECTION 12-3-7, AMENDMENT, AMENDING SECTION 14- 10-6, RESIDENTIAL DEVELOPMENT, TO ADD A PARAGRAPH PERT AINING TO THE UNIFIED ARCHITECTURAL DESIGN REQUIREMENT AS IT RELATES TO EXISTING SEPARATED DUPLEXES, 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 Planning and Environmental Commission of the Town of Vail has held a properly noticed public hearing on the proposed amendment on April 22, 2019 in accordance with the provisions of the Vail Town Code; WHEREAS, the Planning and Environmental Commission recommended approval of these amendments at its April 22, 2019 meeting, and has submitted its recommendation to the Council; WHEREAS, the Council finds that the proposed amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and are compatible with the development objectives of the Town; WHEREAS, the Council finds that the proposed amendments further the general and specific purposes of Title 14, Development Standards, Vail Town Code; and WHEREAS, the Council finds that the proposed amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Section 14-10-6, Residential Development, Vail Town Code, is hereby amended to read as follows: June 4, 2019 - Page 219 of 242 D. Exemption. 1. Residential development meeting all the following criteria may be exempt from the unified architectural and landscaping design requirement of subsection A: a. Existing separated duplexes (where two dwelling units share a development lot but are not physically connected); b. That do not share a unified architectural and landscape design, as determined by the Design Review Board; and c. That received Design Review Board approval prior to May 7, 2019. 2. A registry of qualifying properties shall be kept by the Community Development Department and made publically available. 3. This Section shall not exempt separated duplexes from any other approval requirements of this Code, including without limitation Section 12-11-3. Section 2. Pursuant to Section 12-3-7, Amendment, Vail Town Code, and the evidence and testimony presented in consideration of this ordinance, the Vail Town Council finds and determines the following: 1. The text amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town 2. The text amendment furthers the general and specific purposes of the zoning regulations 3. The text amendment promotes the health, safety, morals and the general welfare of the town and promotes the coordinated and harmonious development of the town in a manner than conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision June 4, 2019 - Page 220 of 242 amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 5. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 7th day of May, 2019, and a public hearing for second reading of this Ordinance set for the 21st day of May, 2019, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. __________________ Dave Chapin, Mayor ATTEST: _________________________ Tammy Nagel, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 21st day of May, 2019. _____________________________ Dave Chapin, Mayor ATTEST: June 4, 2019 - Page 221 of 242 ____________________________ Tammy Nagel, Town Clerk June 4, 2019 - Page 222 of 242 TO: Planning and Environmental Commission FROM: Community Development Department DATE: April 22, 2019 SUBJECT: A request for a recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for a Prescribed Regulation Amendment to amend Section 14-10-6: Residential Development, Vail Town Code, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes, and setting forth details in regard thereto. (PEC19-0012) Applicant: Town of Vail Planner: Erik Gates I. SUMMARY The Town of Vail requests the review of a Prescribed Regulation Amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 14-10-6: Residential Development, Vail Town Code, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes. Based upon Staff’s review of the criteria outlined in Section VI of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission (PEC) forward a recommendation of approval to the Vail Town Council, subject to the findings noted in Section VIII of this memorandum. II. BACKGROUND/SITUATION TO BE ADDRESSED Since as early as 1970, the Town of Vail has permitted, upon a determination by the Design Review Board (DRB), that the two units that make up a duplex may be physically separated if warranted by significant site constraints and are thus deemed separated. The determination that the two units may be separated is based on the following criteria in the Vail Town Code (Code) (emphasis added): 14-10-6: Residential Development B. The presence of significant site constraints may permit the physical separation of units and garages on a site. The determination of whether or not a lot has significant site constraints shall be made by the design review board. "Significant site constraints" June 4, 2019 - Page 223 of 242 Town of Vail Page 2 shall be defined as natural features of a lot such as stands of mature trees, natural drainages, stream courses and other natural water features, rock outcroppings, wetlands, other natural features, and existing structures that may create practical difficulties in the site planning and development of a lot. Slope may be considered a physical site constraint that allows for the separation of a garage from a unit. It shall be the applicant's responsibility to request a determination from the design review board as to whether or not a site has significant site constraints before final design work on the project is presented. This determination shall be made at a conceptual review of the proposal based on review of the site, a detailed survey of the lot and a preliminary site plan of the proposed structure(s). While the two units do not share a single structure, they share a Development Lot and all dimensional standards including GRFA, pursuant to Title 12 Chapter 6 of the Code. The allowance of separation does not relieve applicants from the Unified Architectural and Landscape Design requirements of the Code. This criterion requires residential development be designed in a manner that creates and architecturally integrated structure with unified site development. Per Code: 14-10-6: Residential Development A. …Unified architectural and landscape design shall include, but not be limited to, the use of compatible building materials, architectural style, scale, roof forms, massing, architectural details, site grading and landscape materials and features. Furthermore, when a separation request is granted the DRB may require additional means to create unified site development. These are described in the Code as: 14-6-10: Residential Development C. …In addition, the design review board may require that one or more of the following common design elements such as fences, walls, patios, decks, retaining walls, walkways, landscape elements, or other architectural features be incorporated to create unified site development. Within the TOV there are approximately 40 separated duplexes. Over time, adherence to the Unified Architectural and Landscape Design requirement has not been maintained on approximately 10 of them. This has resulted largely from prior Design Review Boards not enforcing this provision of the code and has been exacerbated by staff approvals. Because the Code, as written, requires that this criteria be met and does not allow for any alteration that would increase the discrepancy between the structures, an exterior alteration of any size would require that one or both of the duplexes significantly redevelop their property to come into compliance with the Code. This results in a financial and logistical constraint that can result in separated duplexes choosing to make no updates their architectural design. June 4, 2019 - Page 224 of 242 Town of Vail Page 3 The proposed text amendment is intended to address situations where existing separated duplexes do not share a unified architectural design. These changes will not impact separated duplexes with a unified architectural design, or new separated duplexes that may be granted in the future. III. PROPOSED TEXT AMENDMENT LANGUAGE The Community Development Department proposes the following additional subsection to be added to 14-10-6 Residential Development: D. Exemption. 1. Residential development meeting all the following criteria may be exempt from the unified architectural and landscaping design requirement of subsection A: a. Existing separated duplexes (where two dwelling units share a development lot but are not physically connected); b. That do not share a unified architectural and landscape design, as determined by the Administrator in his or her reasonable discretion; and c. That received Design Review Board approval prior to May 7, 2019. 2. A registry of qualifying properties shall be kept by the Community Development Department and made publically available. 3. This Section shall not exempt separated duplexes from any other approval requirements of this Code, including without limitation Section 12-11-3. IV. ROLES OF REVIEWING BODIES Order of Review: Generally, text amendment applications will be reviewed by the Planning and Environmental Commission and the Commission will forward a recommendation to the Town Council. The Town Council will then review the text amendment application and make the final decision. Planning and Environmental Commission: The Planning and Environmental Commission is responsible for the review of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code, and forwarding of a recommendation to the Town Council. Design Review Board: The Design Review Board has no review authority over a text amendment to the Vail Town Code. Town Council: June 4, 2019 - Page 225 of 242 Town of Vail Page 4 The Town Council is responsible for final approval, approval with modifications, or denial of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code. Staff: The Town Staff facilitates the application review process. Staff reviews the submitted application materials for completeness and general compliance with the appropriate requirements of the Town Code. Staff also provides the Planning and Environmental Commission a memorandum containing a description and background of the application; an evaluation of the application in regard to the criteria and findings outlined by the Town Code; and a recommendation of approval, approval with modifications, or denial. V. APPLICABLE PLANNING DOCUMENTS Staff believes that following provisions of the Vail Town Code and Vail Land Use Plan are relevant to the review of this proposal: Title 12, Zoning Regulations, Vail Town Code CHAPTER 12-1, TITLE, PURPOSE AND APPLICABILITY (in part) Section 12-1-2: Purpose: A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off-street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with Municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. June 4, 2019 - Page 226 of 242 Town of Vail Page 5 8. To safeguard and enhance the appearance of the Town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. Title 14, Development Standards, Vail Town Code CHAPTER 14-10, DESIGN REVIEW STANDARDS AND GUIDELINES (in part) Section 14-10-6: Residential Development: A. The purpose of this section is to ensure that residential development be designed in a manner that creates an architecturally integrated structure with unified site development. Dwelling units and garages shall be designed within a single structure, except as set forth in subsection B of this section, with the use of unified architectural and landscape design. A single structure shall have common roofs and building walls that create enclosed space substantially above grade. Unified architectural and landscape design shall include, but not be limited to, the use of compatible building materials, architectural style, scale, roof forms, massing, architectural details, site grading and landscape materials and features. B. The presence of significant site constraints may permit the physical separation of units and garages on a site. The determination of whether or not a lot has significant site constraints shall be made by the design review board. "Significant site constraints" shall be defined as natural features of a lot such as stands of mature trees, natural drainages, stream courses and other natural water features, rock outcroppings, wetlands, other natural features, and existing structures that may create practical difficulties in the site planning and development of a lot. Slope may be considered a physical site constraint that allows for the separation of a garage from a unit. It shall be the applicant's responsibility to request a determination from the design review board as to whether or not a site has significant site constraints before final design work on the project is presented. This determination shall be made at a conceptual review of the proposal based on review of the site, a detailed survey of the lot and a preliminary site plan of the proposed structure(s). C. The residential development may be designed to accommodate the development of dwelling units and garages in more than one structure if the design review board determines that significant site constraints exist on the lot. The use of unified architectural and landscape design as outlined herein shall be required for the development. In addition, the design review board may require that one or more of the following common design elements such as fences, walls, patios, decks, retaining walls, walkways, landscape elements, or other architectural features be incorporated to create unified site development. (Ord. 29(2005) § 82: Ord., 9-21- 1999) June 4, 2019 - Page 227 of 242 Town of Vail Page 6 VI. CRITERIA FOR REVIEW 1. The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and Staff finds the proposed zoning code amendments further the general and specific purposes of the zoning regulations by promoting the harmonious development of the Town's villages while maintaining established community qualities and economic values. The proposal also promotes the enhancement of the overall appearance of the Town. The proposal addresses a specific and limited situation that could result in adverse aesthetic conditions if remained unchecked. Without the text amendment, homeowners wishing to upgrade their residences may find it unfeasible to do so. Staff finds that this criterion has been met. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and Staff finds that the proposed prescribed regulations amendments will better implement or achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan. Specifically, in the Vail Land Use Plan’s adopted Goals and Policies, staff identified the following applicable statements: 1. General Growth /Development 1.1. Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. Staff finds that this criterion has been met. 3. The text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and Staff has found that due to the varying degree of adherence to Title 14, Chapter 10, Section 6, of the Code, conditions relating to the built environment of the town have substantially changed since the regulation’s adoption. This has resulted in a number of separated duplexes that would need to incur a significant financial burden to come into compliance with the subject regulation. While the subject regulation remains appropriate, it has become insufficient to deal with this reality. June 4, 2019 - Page 228 of 242 Town of Vail Page 7 Staff finds that this criterion has been met. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and Staff believes this text amendment will ensure a harmonious, convenient, workable relationship among land use regulations consistent with the Town's development objectives. Specifically, the proposed amendment has been narrowly tailored to affect only the design standards outlined in Title 14, Development Standards, for a limited number of separated duplexes. The objectives of this title read: Chapter 14-10-1: Purpose and Intent (in part) The Development standards will help protect property values, ensure the aesthetic quality of the community and ensure adequate development of property within the Town of Vail. Staff finds that the proposed amendment helps to protect individual property values and aesthetic quality by providing greater flexibility for these separated duplexes to redevelop with up-to-date architectural and landscape design. Furthermore, staff believes the limited number of properties affected by this amendment would not significantly increase visual clutter within the Town. Staff finds that this criterion has been met. 5. Such other factors and criteria the planning and environmental commission and/or council deem applicable to the proposed text amendment. VII. ENVIRONMENTAL IMPACTS The proposed prescribed regulation amendment does not have any identifiable environmental impacts. VIII. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forward a recommendation of approval for the prescribed regulation amendment to the Vail Town Council. This recommendation is based upon the review of the criteria outlined in Section VI of this memorandum and the evidence and testimony presented. Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission pass the following motion: June 4, 2019 - Page 229 of 242 Town of Vail Page 8 "The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for a Prescribed Regulation Amendment to amend Section 14-10-6: Residential Development, Vail Town Code, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes, and setting forth details in regard thereto.” Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed prescribed regulation amendment, the Community Development Department recommends the Commission makes the following findings: “Based upon a review of Section VI of the April 22, 2019 staff memorandum to the Planning and Environmental Commission, and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12-1-2, Purpose, Vail Town Code; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." IX. ATTACHMENTS A. Draft Ordinance June 4, 2019 - Page 230 of 242 P L ANNING AND E NV IRO NM E NTAL C O M M I S S IO N April 22, 2019, 1:00 P M Town C ouncil C hambers 75 S . F rontage Road - Vail, Colorado, 81657 1.Call to Order Present: Brian Gillette, Rollie Kjesbo, Ludwig Kurz, K aren Perez, Brian Stoc kmar Absent: Pam Hopkins, J ohn-Ry an Lockman 2.S ite Visits 2.1.1309 Elkhorn Drive - Town of Vail Public W orks 2.2.224/226 Forest Road 454 Beaver Dam Road 54 Beaver Dam Road/95 Forest Road 2.3.706 Forest Road - Ostling Residence 3.Main A genda 3.1.A request for review of Minor Subdivision, pursuant to S ec tion 13-4, Minor Subdivisions, Vail Town C ode, to allow for removal of the platted building envelopes, loc ated at 694 and 670 Forest Road /Lots 7 and 8, Block 1, Vail Village Filing 6, and setting forth details in regard thereto. (PEC19-0009) 20 min. Applicant:Frances Biszantz & LSC 27 LLC, represented by Mauriello Planning Group Planner:J onathan S penc e Planner Spence introduc ed the project. Staff agrees with the history presented by Mauriello. Staff is in support of this subdivision. Dominic Mauriello, (Applicant) disc ussed the property history. Applicant presented slides showing the properties. Purpose of the subdivision is to eliminate envelopes c reated in 1997. No plans to build or alter properties at this time. Applicant c ontinued with the development history. Notably, staff and P E C in 1997 required the building envelopes, despite no c ode requirement for it. P lat note restricted most everything to be built within the envelopes. Gillette: Asked if construction would conform to current setback requirements? Applic ant: No, when initially built a setback varianc e was allowed. Gillette: How are the building envelopes more restric tive than the setbac ks? Perez: Concurred and asked if the footprints were c reated with respec t to lot size and coverage requirements. Applic ant: That may be, but people have been able to build with more flexibility due to not having these envelopes. Asks to be treated the same June 4, 2019 - Page 231 of 242 as every one else. Gillette: I s the only enc roachment in the front setbac k? Garage only ? Applic ant: Suspects more than the garage is in the front setbac k, but it was approved legally with a varianc e back in the day. W hen first constructed, Applicant suspec ts that garages could be allowed in the front setbac k. Spenc e: Staff would not allow the garage placement outside the building envelope without an amendment to the plat. Gillette: W as the intent of the envelopes to constrain the bulk and mass? Applic ant: This may be the c ase, but doesn’t think there was a direc t link established to bulk. W ithout the envelopes, P E C and D RB could still deny based on such concerns. Reiterated fairness with surrounding properties. Mauriello: Speaking to the criteria for the subdivision application and how the proposed subdivision complies. All surrounding lots are zoned the same and have consistent size and shape. Neighboring property has submitted a letter stating their support for this change Public Comment: None Perez: Understands the goal of the applicant, but feel like this is bootstrapping. Building envelopes are generally done for spec ific reasons. These lots transferred GRFA and other requirements between each other and the envelopes were a c ondition of this. I n context of the history, this may be a grant of spec ial privilege. Building envelope is in proportion with the size of the lots. Applic ant: The two lots that ended up being created in 1997, but the lots were conforming to the c ode regardless. Spenc e: Since GRFA allowances sc ale with lot size, the ultimate transfer of GRFA was a small amount. Gillette: Somewhat torn on this. However, since any development has to go back to boards for review anyway, he is in favor. Kurz, Kjesbo, and S toc kmar also c oncur with staff. Ludwig Kurz moved to approve. Brian Gillette seconded the motion and it passed (4-1). Ayes:(4)Gillette, Kjesbo, Kurz, Stockmar Nays:(1)P erez Absent:(2)Hopkins, Lockman 3.2.A request for the review of varianc es from Section 12-6D -9-6 Setbacks, Vail Town Code, in acc ordance with the provisions of Section 12-17-1, Variances, Vail Town Code, to allow for variances to the front setbac k of 20 feet to fac ilitate the redevelopment of both east and west units, located at 706 Forest Road Units A & B/Lot 9, Vail Village Filing 6, and setting forth details in regard thereto. (P EC19-00010) 20 min. Applicant:Paul & D anita Ostling, represented by Mauriello Planning Group Planner:Ashley Clark Planner Clark introduc ed the project Clark: Directed commissioners to the memo to see all proposed c hanges. June 4, 2019 - Page 232 of 242 Small c orrection that the primary and sec ondary units were switc hed in the memo, everything else is correc t. Two previous varianc es for the property exist on the property. One had a condition that no further enc roachment into rear setback would oc cur. Provided surrounding property context with regard to other variances provided. Clark: Staff could not support the idea that this lot is unique to the surrounding lots. A ll lots are long and have an extensive amount of steep slope hazard. Staff rec ommends denial of the variance. Dominic Mauriello (A pplic ant): I ntroduced the project team. Presented current c onditions of the lot and properties. Presented proposed designs for redevelopment. Presented the history of the property, whic h was built when front setback requirement was smaller. This lot has also received front and side setbac k varianc es. Plan is to demolish the secondary unit and redevelop the primary unit to matc h later. The change will result in less GRFA in the front setback. Stated that D RB was happy with the arc hitectural direction. Nothing proposed will come out any further than the front deck. Detailed what is being removed and added to the front setbac k. Gillette: I f this is a teardown and rebuild, why can’t it all be rebuilt in the meeting the setbac k? Mauriello: The steep slopes in the back yard push the property forward. The unit may be able to be pushed back, but the units will be inc onsistent with secondary unit being visibly pushed back in comparison to the primary unit. Mauriello: Detailed what is being added and removed from the east setbac k. Presented a number of slides showing the proposed c hanges to the building footprint and dec ks. To build further up the hill would require signific ant expense and exc avation. Applic ant argues that the number of surrounding homes (5+) that have had front setback variances due to the slopes shows that this would not be a spec ial privilege. Perez: Had a question regarding existing setbacks along the street where this lot is located. Planner Clark was able to provide this information in her memo. There is a letter of support from a neighboring property Public Comment: None Kjesbo: The goal should be to minimize the varianc e. However, on the east side of the property the enc roachment will be worse. Has an issue with the east side setback. Likes what is being proposed on the front. I s livable square footage moving further out front? Mauriello: No Gillette: I n support. S hould be c omparing this property to those that don’t have the steep slope hardship. This kind of proposal is what variances are for. Kurz: Split. Has conc erns about this becoming more non-conforming than it already is. Since one side will be more c onforming and one less, isn’t sure whether approval would be worth it to the town. Leaning toward voting in favor. June 4, 2019 - Page 233 of 242 Neubecker: I t is the commission’s job to interpret whether this applic ation fits the c ode criteria. W hether the town will look better with this proposal is less of a concern for the commissioners. Please foc us decision on the variance c riteria. Perez: Also somewhat torn. Has an issue with this not being necessary for the property. Looking at other properties c an be good, but is a bit of a red herring in this case. The conditions of past variance approvals were very clear that the setbac ks should not be pushed further. Feels this would be a special privilege. Stoc kmar: Has gone back and forth. The commission has tight constraints to work in. This is not a unique issue to the area sinc e surrounding lots have fac ed similar issues. Ultimately feels this is not unique bey ond the shared hardship that most properties have on that street. Mauriello: Compared to everything else in the same zoning distric t, these conditions are quite unique. Gillette: I f every property on the street got variances, why is this varianc e locally unique and a grant a spec ial privilege? Perez: Argues that y ou need to look at the property on its own. Also, variances should be granted as narrowly as possible. Stoc kmar: Still does not see all necessary criteria being met. Mauriello: Sees that all the other houses have been able to get this to work. Perez: This property c ould be made to have a smaller varianc e, however. Mauriello: All properties on this street c ould have built something without variances, but they were building properties appropriate to the neighborhood. Could still ask for and potentially get a variance even if this was a teardown and rebuild. Perez: Agrees that a varianc e could be given, but doesn’t feel this variance is truly nec essary. Stoc kmar: You have been able to pull back from the west, but enc roach on the east. Acknowledges that the slope is different on each side but expresses discomfort with this approach. I t is time to call the question. Perez moved to call the question, Kurz seconded. Applic ant: Requests a tabling and asks for direction from the c ommission. Kurtz: I t is not appropriate for the c ommission to give direc tion, but tabling is ok. Perez and Kurz remove their motion to call. Ludwig Kurz moved to table to May 13, 2019. Karen Perez sec onded the motion and it passed (5-0). Absent:(2)Hopkins, Lockman 3.3.A request for a recommendation to the Vail Town Counc il, pursuant to Section 12-3-7, Amendment, Vail Town Code, concerning an update to the Master Plan for the Public W orks D epartment site, Unplatted, Section: 9 Township: 5 Range: 80 P C L I N N1/2NE1/4-N1/2NW 1/4, loc ated at 1309 90 min. June 4, 2019 - Page 234 of 242 Elkhorn Dr. and setting forth details in regard thereto. (P E C19-0006) Applicant:Town of Vail Planner:Chris Neubecker Planner Neubecker introduced the projec t and introduced the Public W orks Director, Greg Hall, and arc hitect representatives, C hris J uergens and Mark Donaldson. Neubecker: The goal of this application is to update the old Master Plan. W ants to give a formal hearing for the P E C and to point out c hanges sinc e the last work session to the P E C. Also wants to take in suggestions and changes from the c ommunity and the P E C. Master Plan assesses future growth and needs for Public W orks. There was a review of existing conditions, natural and built environments on the site, zoning, hazards, as well as wildlife habitat. Town feels there is an opportunity to add more employ ee housing on the site. Also an opportunity to install solar panels to offset the Town’s energy use. There are also proposed improvement to transportation concerns, recommendations in the Plan on wildlife, and a phasing timeline. Neubecker: Presented the proposed analy sis and layout of the site on overhead slides. There is some wildlife habitat range on the east side of the property, so this will need to be considered throughout the process. Talked about the conditions and need related to transportation. He disc ussed the needs for administrative offic es. Site is oriented well for solar energy and the Town plan recommends that solar be c onsidered for Town buildings, so solar is being seriously considered for this site. Stoc kmar: I s there also battery storage for the solar being proposed? Greg Hall (Representing the Applicant): The buildings will have some battery storage, but still needs to be looked into and researc hed further Neubecker: Some c urrent buildings are quite old and should be replaced at some point regardless. There is a greater need for storage for other departments such as the polic e and events department. This area c ould potentially fill that need. Spoke to the need and proposal for additional employ ee housing on the site. I f housing is expanded beyond 24 additional units, which is antic ipated, an expansion of the underpass entry to the site beneath I -70 would be required. Gillette: W ould the entry expansion be able to handle the maximum proposed housing units? Hall: Yes Neubecker: Began to describe changes to the plan sinc e PEC last saw it introduced at a work session. Revised plan added some new wildlife information, including a rec ommendation on banning dogs from the site, and new wildlife studies planned for new proposed buildings. Gillette: Expressed conc ern over the public having an issue with development in wildlife habitat. Hall: This is just the master plan; all new buildings will need to go through the board review process as well. Expects more pushback may happen then. All information is public ly available currently as well. Stoc kmar: W hile the public may not be as invested at this stage, Stoc kmar stressed that the P E C should look into this and be kept aware of public conc erns through all stages. June 4, 2019 - Page 235 of 242 Neubecker: Revised plan adds information on traffic capacity as a result of additional units. Also, plan rec ommends a bus stop on the site for the added housing. The other plan change was just an estimation of time for each phase. A cross-section of the site was also added to the plan. Neubecker: W hat questions does the board still have that staff and the plan have not yet answered? W hat does the P E C rec ommend being want added to the plan? W hat additional information does the P E C still need to make a rec ommendation to Town C ounc il? Kjesbo: Many citizens don’t realize what is back there. I f the need for housing continues to grow on the site, will that remove the ability for Public W orks to add to its own fac ilities on site, due to site constraints? I s extensive housing appropriate for this site? Gillette: I n the master plan, Kjesbo’s conc ern should be addressed. Stoc kmar: Also stressed the fact that Public Works will continue to grow, so growth needs to be carefully c onsidered. Recognizes the need for housing, but expressed conc ern over the quantity of housing needs to be on this site specifically. Kurz: Also concurring, wonders if the housing should only be available to Public W orks employees, or at least prioritized to them. Also conc erned with the safety of the underpass even if expanded, especially when considering adding new living units to the site. Kurz: W hat other c onsultants have you used? Hall: Architects, a variety of engineers (traffic, civil, elec trical, mec hanic al, traffic , etc …), a wildlife biologist, also hired a solar c onsultant. The additional housing proposed is meant for Town of Vail employ ees, the demand exists. Employees can only live in the same Town housing for 2 years as well, then they need to move out. Stoc kmar: Could the housing be designed to be easily added too? Hall: Housing should be scalable in this plan. There is some flexibility built into this plan. Gillette: Make sure the solar c onsultant is also asked to look at a variety of potential build out scenarios, and pay back time. Perez: W hile on the site visit, Perez asked how many employees worked on the site. W as told it is over 100. W hat is the rule for the Housing Authority as it relates to the site? Hall: Housing is all rental, not for sale. Perez: W here would the funds for the housing come from? Hall: Normally, the Town of Vail pays for it. Perez: Asks that the Town looks to the housing authority to find every opportunity to reduce c ost. Asking since this is Town owned, not owned by a third party. Neubecker: Since this is intended to be Town of Vail employee housing, it would still need a c ovenant/ deed restriction. Perez: There are ways to prioritize Town of Vail renters without violating any Fair Housing laws. Gillette: (Summarizing) There are 3 conc erns. Housing funding options June 4, 2019 - Page 236 of 242 raised by Perez, Public W orks and housing needs tradeoff raised by Kjesbo, and having c onsultants look at a variety of build out options suggested by Gillette. Ludwig Kurz moved to rec ommend approval with a c ondition that the three issues summarized by Commissioner Gillette be addressed in the plan. Rollie Kjesbo seconded the motion and it passed (5-0). Absent:(2)Hopkins, Lockman 3.4.A request for a recommendation to the Vail Town Counc il, pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 12-2-2, D efinitions, Vail Town C ode, to add a definition for sloped roof, amend the definition for flat roof, and add a definition for parapet, and to amend Section 14-10-4, Arc hitectural Projections, Decks, Balc onies, Steps, Bay W indows, Etc ., Vail Town C ode, to add regulations for parapet heights, and setting forth details in regard thereto. (P E C19-0011) 15 min. Applicant:Town of Vail Planner:Ashley Clark Ashley Clark introduced the proposal. Staff seeks to update the zoning code to c larify definitions of sloped roof and flat roof. Current c ode also does not define parapets. Staff presented to D RB at 3 meetings, and the D RB has provided a recommendation on the proposed language. Staff provided notice to loc al architec ts on the proposed text amendments. Clark reviewed the existing code and proposed text, and also provided some background on legislative history. Existing code allows 33’ height for sloped roofs, and 30’ for flat roofs in most low-density residential zone distric ts. Parapets are c urrently measured to the same height as roofs, and not allowed any additional height. Code exemptions on Architec tural Projec tions does not work for parapets. A recent development with a flat roof brought these c ode conc erns to staff’s attention. Proposed language is that a sloped roof is a rise of greater than 2” rise over 12” run. Proposed text amendment would allow a 30” parapet in addition to the height limit of 30’. Stoc kmar – That means that a perc eived height of 33’ height with a parapet, even though 30’ is what code allows. Clark – An applicant had a proposal for a low sloping roof with 33’ height. There was no clear standard in the c ode, and so staff referred to the Building Code for direc tion. Staff rec ommends improving the code with more precise descriptions of flat and sloping roofs. Other communities staff researched have definitions in their codes. Perez – How does a Mansard roof fall into these definitions? Clark showed examples of a Mansard roof. Public Comment Pavan Kruger, Arc hitect – A flat roof with 30” parapet, would that be allowed? Could a small guardrail be added on top of the parapet to meet building c ode? Clark indicated that the guardrail would need to be reviewed by the D RB June 4, 2019 - Page 237 of 242 Gillette – Every board will review or interpret codes differently, so if we need c larification it should be added to c ode. Mike Suman, Architec t – I attended the D RB for the discussion. The flat roof membrane was measured to 30’, and a guardrail would not be allowed more than 30” above the membrane. Gillette – Add language that guardrails shall be measured the same as a parapet. Mike Suman – There was discussion that 2:12 and greater would be better to meet definition of flat roof, rather than greater than 2:12. I support proposed language. Ludwig Kurz moved to rec ommend approval with additional language that guardrails shall be inc luded in the allotted height for a parapet. Rollie Kjesbo sec onded the motion and it passed (5-0). Absent:(2)Hopkins, Lockman 3.5.A request for a recommendation to the Vail Town Counc il, pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Section 14-10-6: Residential Development, Vail Town Code, to add a paragraph pertaining to the unified architectural design requirement as it relates to existing separated duplexes, and setting forth details in regard thereto. (P E C 19- 0012) 45 min. Applicant:Town of Vail Planner:Erik Gates Erik Gates introduced the proposal on Separated D uplexes. The separation of dwelling units is allowed under the current c ode, subjec t to review and approval by the D RB, with special conditions on the property. There are several existing properties in town that have separated duplexes with different architec ture, which is not c urrently allowed by the c ode. This results in property owners facing very expensive upgrades when minor work is proposed, in order to meet the current code. S taff rec ommends amending the code to allow different arc hitecture only for existing separated duplex, and staff will maintain a list of qualify ing properties. Gates disc ussed some of the separated duplex properties that exist in Town. He reviewed some properties where architec ture is very similar, but do not fully meet the current c ode. He also showed examples of separated duplexes with extremely different architec ture between units. Stoc kmar – I s it right that there are about 40 separated duplexes in town, but only 15 have different arc hitecture? Gates – That is correct. Stoc kmar – W e are trying to solve an existing problem with more than a band-aid. Gillette – W hat is the hardship that these properties have? Gates – These properties would not meet the criteria for a varianc e. These problems are not related to the land. Mike Suman – I am working on two of these properties. They have June 4, 2019 - Page 238 of 242 arc hitecture from c ompletely different decades. One was built in the 1960s and the other was built in the 1990s. The Venturi house is another good example; y ou are not going to tear down one to make it look like the other. Staff is in a tough spot, and they and D RB need some direc tion. Right now D RB can’t approve projects with different designs. Gillette – Still not sure why we are not adding the list of properties in the code. Mike Suman – D RB should be the ones that determine the list. They are the ones to determine separated duplexes, and should be the ones that review design. Gillette – Before this comes bac k to us, the D RB should determine the list of properties, then present the list to the P E C. The A dministrator should identify the property, then the list approved by the D RB. Stoc kmar – Sounds like it would be possible for the list to be maintained by staff, and available for inspec tion by the general public . W ill y ou have that list by the time this is presented to Town Council? Mike Suman – I would love for the P E C to give direc tion to keep this process moving forward, and allow staff to develop list before review by Town Council. Gillette – For me to support this, I rec ommend photographing all the separated duplexes, and c reating y our list of qualifying properties. Present the list to D RB for their approval. Kjesbo – I am familiar with 167/197 Rockledge which will be torn down. W hen they are torn down, is the new home allowed to have completely different designs, even when rebuilt? I f so, we are perpetuating this issue, and essentially creating single family lots. Gillette – There will be no need to meet required setbacks between units. They could be built very close, almost c onnected. Stoc kmar – There is a small number of properties that this will apply to. Mike Suman – W e will still need to get J oint Property Owner approval, and there are already a number of protec tions in the c ode. There are a small number of properties that c an take advantage of this proposed language. Perez – I t would be nic e to have the issues addressed that were previously rec ommended. I could live with staff going to D RB with the list, before going to Council. Kurz – Comfortable that staff does not need to come back to PEC. Brian Gillette moved to rec ommend approval with the added requirement that Staff present the inventory of qualifying properties to the Design Review Board, whic h shall approve the inventory for approval prior to first reading by Town Council. Rollie Kjesbo sec onded the motion and it passed (5-0). Absent:(2)Hopkins, Lockman 4.A pproval of Minutes June 4, 2019 - Page 239 of 242 4.1.April 8, 2019 P E C Results Brian Gillette moved to approve. Rollie Kjesbo seconded the motion and it passed (5-0). Absent:(2)Hopkins, Lockman 5.A djournment Rollie Kjesbo moved to adjourn. Karen Perez seconded the motion and it passed (5-0). Absent:(2)Hopkins, Lockman The applic ations and information about the propos als are available for public inspection during regular offic e hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the projec t orientation and the site visits that prec ede the public hearing in the Tow n of Vail Community Development Department. Times and order of items are approximate, subjec t to c hange, and cannot be relied upon to determine at what time the Planning and Environmental Commission w ill cons ider an item. Please call (970) 479-2138 for additional information. Please c all 711 for sign language interpretation 48 hour prior to meeting time. Community Development Department June 4, 2019 - Page 240 of 242 Separated Duplexes Qualifying under 14-10-6D 226 and 224 Forest Road 330 and 338 Rockledge Road 95 Forest Road and 54 Beaver Dam Road 454 Beaver Dam Road East and West 10 and 16 Forest Road 167 and 197 Rockledge Road 217 and 227 Rockledge Road 1706 and 1708 Geneva Drive 1987 Circle Drive East and West 5045 Main Gore Drive S. North and South June 4, 2019 - Page 241 of 242 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: A djournment 7:05 pm (estimate) June 4, 2019 - Page 242 of 242