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HomeMy WebLinkAbout2021-06-01 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 T IN G E vening Agenda Virtual Meeting 6:00 P M, June 1, 2021 Meeting to be held Virtually (access H igh Five Access Media livestr eam https://www.highfivemedia.org/live-five the day of the meeting and visit https://www.vailgov.com/town-council to participate in public comment) Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Counc il will consider an item. Public c omment will be taken on eac h agenda item. Citizen participation offers an opportunity for c itizens to express opinions or ask questions regarding town services, polic ies or other matters of community concern, and any items that are not on the agenda. Please attempt to keep c omments to three minutes; time limits established are to provide effic iency in the conduct of the meeting and to allow equal opportunity for everyone wishing to speak. 1.Citiz en Participation (10 min.) 2.Any action as a result of executive session 3.Consent Agenda (5 min.) 3.1.Resolution 21, Series 2021, A Resolution of the Vail Town C ounc il Approving an I ntergovernmental Agreement between the Town of Vail and the Town of Avon for Building I nspec tion Coverage Services Action Requested of Counc il: A pprove, approve with amendments or deny Resolution 21, Series 2021. Bac kground: The Town of Vail and the Town of Avon desire to cooperate to allow The Town’s building inspectors to perform building inspections in Avon when Avon’s building inspectors are unavailable or on vac ation. Staff Rec ommendation: Approve, approve with amendments or deny Resolution 21, Series 2021. 3.2.Contract with W alking Mountain Scienc e Center for Vail Nature Center Action Requested of Counc il: A pprove, approve with amendments, or deny contract with W alking Mountain Scienc e Center Bac kground: Annual contrac t for the Vail Nature Center Staff Rec ommendation: Approve, approve with amendments, or deny contract with W alking Mountain Scienc e Center 4.Town Manager Report (10 min.) 4.1.Vail W elcome Centers Earn Gold C ertification from Colorado Tourism Offic e (vailgov.com) June 1, 2021 - Page 1 of 225 4.2.Update about American Cross Rescue Plan Funds 4.3.Review Proposed Community Picnic Dates (J uly 13 at B ighorn Park; August 10 at Donovan P avilion) 5.P resentations / Discussion 5.1.2020 Audited Financial S tatements for the Town of Vail 15 min. Presenter(s): Kathleen Halloran, Finance Direc tor and Mic hael J enkins, Mc Mahan and Associates Action Requested of Counc il: The 2020 audited financial statements are presented to Town Council for information only ; No ac tion requested. Bac kground: I n accordanc e with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town acc ounts at least annually. The audit shall be conducted by c ertified public acc ountants and made available for public inspection. The 2020 audit was conducted by Mc Mahan and Assoc iates. 5.2.W ildland Fire Seasonal Outlook and W ildland Fire Mitigation Program Updates 30 min. Presenter(s): Paul Cada, W ildland Program Manager Mark Novak, Fire Chief Action Requested of Counc il: Provide feedback to staff regarding rec ommended actions 6.P ublic Hearings 6.1.Ordinanc e No.11, Series 2021, Second Reading, An Ordinanc e Repealing and Reenacting Title 11, S ign Regulations, Vail Town Code, P ursuant to Sec tion 12-3-7, Amendment, to Adopt Updated Sign Regulations, and Setting Forth Details in Regard Thereto 5 min. Presenter(s): Erik Gates, Planner Action Requested of Counc il: A pprove, approve with amendments, or deny Ordinanc e No.11, Series 2021 Second Reading, An Ordinanc e Repealing and Reenacting Title 11, S ign Regulations, Vail Town Code, P ursuant to Sec tion 12-3-7, Amendment, to Adopt Updated Sign Regulations, and Setting Forth Details in Regard Thereto Bac kground: On J une 18th, 2015, the Supreme Court of the United States (SC OTUS) issued a decision on Reed v. Town of Gilbert in favor of Reed that put the c onstitutionality of sign codes in many municipalities, including the Town of Vail, into question. The SC OTUS decision generally points to munic ipalities needing sign codes that address time, plac e, and manner distinctions only when it comes to sign regulation. Changes proposed in the current draft of the new sign c ode aim to remove content and speaker distinctions as much as possible, to “c lean up” the code by removing redundant or irrelevant definitions and regulations, and to address conc erns brought by the P E C at previous meetings. Staff Rec ommendation: Approve, approve with amendments, or deny Ordinanc e No.11, Series 2021 Second Reading, An Ordinanc e Repealing and Reenacting Title 11, S ign Regulations, Vail Town Code, P ursuant to Sec tion 12-3-7, Amendment, to Adopt Updated Sign Regulations, and Setting Forth Details in Regard Thereto June 1, 2021 - Page 2 of 225 7.Adjournment 7.1.Adjournment 7:15 pm (estimate) Meeting agend as and materials c an b e ac cess ed prior to meeting d ay o n the Town o f Vail website www.vailgov.c o m. All town counc il meetings will b e s treamed live by High F ive Acc es s Med ia and available fo r pub lic viewing as the meeting is hap p ening. T he meeting vid eo s are als o p o s ted to High F ive Acc es s Media website the week fo llo wing meeting d ay, www.highfivemed ia.org. P leas e c all 970-479-2136 for ad d itional informatio n. S ign language interpretatio n is availab le up o n req uest with 48 ho ur notific ation dial 711. June 1, 2021 - Page 3 of 225 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 21, S eries 2021, A R esolution of the Vail Town Council A pproving an I ntergovernmental A greement between the Town of Vail and the Town of Avon for Building I nspection C overage S ervices AC T IO N RE Q UE S T E D O F C O UNC IL : A pprove, approve with amendments or deny Resolution 21, S eries 2021. B AC K G RO UND: T he Town of Vail and the Town of Avon desire to cooperate to allow T he Town’s building inspectors to perform building inspections in Avon when Avon’s building inspectors are unavailable or on vacation. S TAF F RE C O M M E ND AT I O N: Approve, approve with amendments or deny Resolution 21, S eries 2021. AT TAC H ME N TS : Description Resolution 21, S er ies 2021 IG A with Avon June 1, 2021 - Page 4 of 225 1 5/13/2021 S:\TOWN COUNCIL AGENDA ITEMS\2021\051821\RESOLUTION NO. 21 SERIES OF 2021 - IGA BUILDING INSPECTION SERVICES AVON_.DOCX RESOLUTION NO. 21 SERIES 2021 A RESOLUTION OF THE VAIL TOWN COUNCIL APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF VAIL AND THE TOWN OF AVON FOR BUILDING INSPECTION COVERAGE SERVICES WHEREAS, the Town of Vail and the Town of Avon desire to cooperate to allow The Town of Vail’s building inspectors to perform building inspections in Avon when Avon’s building inspectors are unavailable or on vacation, as further set forth in Exhibit A, attached hereto and made a part hereof by this reference. (the "IGA"); and WHEREAS, the parties find and determine that it is in the best interest of the public that each serves to enter into the IGA to provide for the provision of Building Inspection Coverage; NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Town Council hereby approves the IGA in substantially the same form as attached hereto as Exhibit A, and in a form approved by the Town Attorney, and authorizes the Town Manager to execute the IGA on behalf of the Town. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 18th day of May 2021. _________________________ Dave Chapin, Town Mayor ATTEST: _____________________________ Tammy Nagel, Town Clerk June 1, 2021 - Page 5 of 225 1 5/13/2021 S:\TOWN COUNCIL AGENDA ITEMS\2021\051821\AVON INSPECTION IGA-A050421-JMM.DOCX INTERGOVERNMENTAL AGREEMENT THIS INTERGOVERNMENTAL AGREEMENT (the "Agreement") is made and entered into this ____ day of _______________, 2021 (the "Effective Date"), by and between the Town of Vail, a Colorado home rule municipality with an address of 75 South Frontage Road, Vail, CO 81657 (the “Town”), and the Town of Avon, a Colorado home rule municipality with an address of P.O. Box 975, Avon, CO 81620 ("Avon") (each a "Party" and collectively the "Parties"). WHEREAS, the Parties desire to cooperate to allow The Town’s building inspectors to perform building inspections in Avon when Avon’s building inspectors are unavailable or on vacation (the "Building Inspection Coverage"); and WHEREAS, the Parties find and determine that it is in the best interest of the public that each serves to enter into this Agreement to provide for the provision of Building Inspection Coverage. NOW, THEREFORE, in consideration of the terms and conditions of this Agreement, the receipt and sufficiency of which is mutually acknowledged, the Parties: 1. Purpose. The purpose of this Agreement is to set forth the responsibilities of the Parties with regard to the provision of Building Inspection Coverage. 2. Term. The term of this Agreement shall begin immediately upon execution and shall continue through December 31, 2021 and shall be automatically renewed for up to 5 additional one-year terms unless terminated by written notice, such notice given not less than 30 days prior to the end of the year, unless otherwise agreed to by the Parties. In addition, either Party may terminate this Agreement with or without cause at any time by giving the other Party written notice of such termination not less than 30 days prior to such termination date. 3. Building Inspection Coverage. By written notice provided at least 10 business days in advance, Avon may request that the Town's building inspectors provide substitute coverage for Avon's building inspectors who are unavailable, and the Town, at its sole option based on Vail's own workload, may make its building inspectors available to Avon during this period. 4. Building Inspectors Credentials. The Town's building inspectors who provide the Building Inspection Coverage shall at all times have and maintain all licenses, certificates, credentials, and education as are required by applicable law. 5. Compensation. a. Avon shall pay the Town $85 per hour for all inspections, with a minimum of one-hour charge for each inspection, plus an $85 trip charge for drive time to and from Avon for each inspection. June 1, 2021 - Page 6 of 225 2 5/13/2021 S:\TOWN COUNCIL AGENDA ITEMS\2021\051821\AVON INSPECTION IGA-A050421-JMM.DOCX b. The Town shall provide invoices to the Avon monthly, by the first week of the following month, and Avon shall pay the invoices within 30 days of receipt. 6. Independent Contractors. In performing any acts or duties under this Agreement, the Town's building inspectors will remain employees of the Town for all purposes, including but not limited to, all employment-related laws and regulations, and shall not be considered an employee of Avon. It is expressly acknowledged and understood by the Parties that nothing contained in this Agreement shall result in, or be construed as, establishing an employment relationship. The Town's building inspectors shall perform as independent contractors. 7. Insurance. Each party shall provide its own public liability and property damage insurance coverage as it may deem necessary for any potential liability arising from the provision of this Agreement. 8. Hold Harmless. The Parties agree to hold each other harmless from any and all losses, costs, damages, injuries, liability, claims, liens, demands, actions, and causes of action whatsoever, arising out of or related to their own intentional or negligent acts, errors or omissions, or those of their agents, officers, servants and employees, whether contractual or otherwise, related to performance or lack of performance of this Agreement. 9. Miscellaneous. a. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Eagle County, Colorado. b. No Waiver. Delays in enforcement or the waiver of any one or more defaults or breaches of this Agreement by the Town shall not constitute a waiver of any of the other terms or obligation of this Agreement. c. Integration. This Agreement constitutes the entire agreement between the Parties, superseding all prior oral or written communications. d. Third Parties. There are no intended third-party beneficiaries to this Agreement. e. Notice. Any notice under this Agreement shall be in writing and shall be deemed sufficient when directly presented or sent prepaid, first-class United States mail to the Party at the address set forth on the first page of this Agreement. f. Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be unlawful or unenforceable for any reason, the remaining provisions hereof shall remain in full force and effect. g. Modification. This Agreement may only be modified upon written agreement of the Parties. June 1, 2021 - Page 7 of 225 3 5/13/2021 S:\TOWN COUNCIL AGENDA ITEMS\2021\051821\AVON INSPECTION IGA-A050421-JMM.DOCX h. Assignment. Neither this Agreement nor any of the rights or obligations of the Parties shall be assigned by either Party without the written consent of the other. i. Governmental Immunity. The Parties and their officers, attorneys and employees are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to the Parties and their officers, attorneys or employees. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. TOWN OF VAIL, COLORADO ________________________________ Scott Robson, Town Manager ATTEST: _______________________________ Tammy Nagel, Town Clerk TOWN OF AVON, COLORADO ________________________________ Eric Heil, Town Manager ATTEST: _______________________________ Brenda Torres, Town Clerk June 1, 2021 - Page 8 of 225 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 : Contract with Walking Mountain S cience C enter for Vail Nature C enter AC T IO N RE Q UE S T E D O F C O UNC IL : A pprove, approve with amendments, or deny contract with Walking Mountain Science Center B AC K G RO UND: A nnual contract for the Vail Nature C enter S TAF F RE C O M M E ND AT I O N: Approve, approve with amendments, or deny contract with Walking Mountain S cience C enter AT TAC H ME N TS : Description Vail Nature Center C ontract June 1, 2021 - Page 9 of 225 1 5/18/21 AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT is made and entered into this 17th day of May, 2021, by and between the TOWN OF VAIL, a Colorado municipal corporation, 75 South Frontage Road, Vail, Colorado 81657, hereinafter referred to as the "Town," and Walking Mountains Science Center, a non-profit organization with a principal place of business at Walking Mountains Lane, Avon, CO, 81620 ("Contractor") (each individually a "Party" and collectively the "Parties"). WHEREAS, the Town requires professional services; and WHEREAS, Contractor has held itself out to the Town as having the requisite expertise and experience to perform the required professional services. NOW, THEREFORE, for the consideration hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: I. SCOPE OF SERVICES A. Contractor shall furnish all labor and materials required for the complete and prompt execution and performance of all duties, obligations, and responsibilities which are described or reasonably implied from the Scope of Services set forth in Exhibit A, attached hereto and incorporated herein by this reference. B. A change in the Scope of Services shall not be effective unless authorized as an amendment to this Agreement. If Contractor proceeds without such written authorization, Contractor shall be deemed to have waived any claim for additional compensation, including a claim based on the theory of unjust enrichment, quantum merit or implied contract. Except as expressly provided herein, no agent, employee, or representative of the Town is authorized to modify any term of this Agreement, either directly or implied by a course of action. II. TERM AND TERMINATION A. This Agreement shall commence on the Effective Date, and shall continue until Contractor completes the Scope of Services to the satisfaction of the Town, or until terminated as provided herein. B. Either Party may terminate this Agreement upon thirty (30) days advance written notice. The Town shall pay Contractor for all work previously authorized and completed prior to the date of termination. If, however, Contractor has substantially or materially breached this Agreement, the Town shall have any remedy or right of set-off available at law and equity. III. COMPENSATION A. In consideration for the completion of the Scope of Services by Contractor, the Town shall pay Contractor an amount not to exceed $75,000. This maximum amount shall include all fees, costs and expenses incurred by Contractor, and no additional amounts shall be paid by the Town for such fees, costs and expenses. Contractor shall bill the Town on a monthly June 1, 2021 - Page 10 of 225 2 5/18/21 basis from the month of April through November, 2021, and be paid by the Town as the Scope of Services is completed to the satisfaction of the Town. B. Notwithstanding the maximum amount specified in this Section, Contractor shall be paid only for work performed. IV. PROFESSIONAL RESPONSIBILITY A. Contractor hereby warrants that it is qualified to assume the responsibilities and render the services described herein and has all requisite corporate authority and professional licenses in good standing, required by law. B. The work performed by Contractor shall be in accordance with generally accepted professional practices and the level of competency presently maintained by other practicing professional firms in the same or similar type of work in the applicable community. The work and services to be performed by Contractor hereunder shall be done in compliance with applicable laws, ordinances, rules and regulations. C. The Town's review, approval or acceptance of, or payment for any services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement. D. Because the Town has hired Contractor for its professional expertise, Contractor agrees not to employ subcontractors to perform any work under the Scope of Services, except for those explicitly described in Exhibit A. V. INDEPENDENT CONTRACTOR Contractor is an independent contractor. Notwithstanding any other provision of this Agreement, all personnel assigned by Contractor to perform work under the terms of this Agreement shall be, and remain at all times, employees or agents of Contractor for all purposes. Contractor shall make no representation that it is a Town employee for any purposes. VI. INSURANCE A. Contractor agrees to procure and maintain, at its own cost, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by Contractor pursuant to this Agreement. At a minimum, Contractor shall procure and maintain, and shall cause any subcontractor to procure and maintain, the insurance coverages listed below, with forms and insurers acceptable to the Town. 1. Worker's Compensation insurance to cover obligations imposed by applicable law for any employee engaged in the performance of work under this Agreement, and Employer's Liability insurance with minimum limits of $100,000 bodily injury by accident for each employee, $100,000 bodily injury by disease for each employee, and policy limit of $500,000 bodily injury by disease. June 1, 2021 - Page 11 of 225 3 5/18/21 2. Commercial General Liability insurance with minimum combined single limits of six hundred thousand ($600,000) each occurrence and one million dollars ($1,000,000) general aggregate. The policy shall be applicable to all premises and operations, and shall include coverage for bodily injury, broad form property damage, personal injury (including coverage for contractual and employee acts), blanket contractual, products, and completed operations. The policy shall contain a severability of interests provision, and shall include the Town and the Town's officers, employees, and contractors as additional insureds. No additional insured endorsement shall contain any exclusion for bodily injury or property damage arising from completed operations. B. Such insurance shall be in addition to any other insurance requirements imposed by law. The coverages afforded under the policies shall not be canceled, terminated or materially changed without at least thirty (30) days prior written notice has been given to the Town. In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. Any insurance carried by the Town, its officers, its employees, or its contractors shall be excess and not contributory insurance to that provided by Contractor. Contractor shall be solely responsible for any deductible losses under any policy. VII. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the Town and its officers, insurers, volunteers, representative, agents, employees, heirs and assigns from and against all claims, liability, damages, losses, expenses and demands, including attorney fees, on account of injury, loss, or damage, including without limitation claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever, which arise out of or are in any manner connected with this Agreement if such injury, loss, or damage is caused in whole or in part by, the act, omission, error, professional error, mistake, negligence, or other fault of Contractor, any subcontractor of Contractor, or any officer, employee, representative, or agent of Contractor, or which arise out of a worker's compensation claim of any employee of Contractor or of any employee of any subcontractor of Contractor. VIII. ILLEGAL ALIENS A. Certification. By entering into this Agreement, Contractor hereby certifies that, at the time of this certification, it does not knowingly employ or contract with an illegal alien who will perform work under this Agreement and that Contractor will participate in either the E- Verify Program administered by the United States Department of Homeland Security and Social Security Administration or the Department Program administered by the Colorado Department of Labor and Employment to confirm the employment eligibility of all employees who are newly hired to perform work under this Agreement. B. Prohibited Acts. Contractor shall not: 1. Knowingly employ or contract with an illegal alien to perform work under this Agreement; or June 1, 2021 - Page 12 of 225 4 5/18/21 2. Enter into a contract with a subcontractor that fails to certify to Contractor that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement. C. Verification. 1. If Contractor has employees, Contractor has confirmed the employment eligibility of all employees who are newly hired to perform work under this Agreement through participation in either the E-Verify Program or the Department Program. 2. Contractor shall not use the E-Verify Program or Department Program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. 3. If Contractor obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien who is performing work under this Agreement, Contractor shall: a. Notify the subcontractor and the District within three (3) days that Contractor has actual knowledge that the subcontractor is employing or contracting with an illegal alien who is performing work under this Agreement; and b. Terminate the subcontract with the subcontractor if within three (3) days of receiving the notice required pursuant to subsection 1 hereof, the subcontractor does not stop employing or contracting with the illegal alien who is performing work under this Agreement; except that Contractor shall not terminate the subcontract if during such three (3) days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien who is performing work under this Agreement. D. Duty to Comply with Investigations. Contractor shall comply with any reasonable request by the Colorado Department of Labor and Employment made in the course of an investigation conducted pursuant to C.R.S. § 8-17.5-102(5)(a) to ensure that Contractor is complying with the terms of this Agreement. E. Affidavits. If Contractor does not have employees, Contractor shall sign the "No Employee Affidavit" attached hereto. If Contractor wishes to verify the lawful presence of newly hired employees who perform work under the Agreement via the Department Program, Contractor shall sign the "Department Program Affidavit" attached hereto. IX. MISCELLANEOUS A. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Eagle County, Colorado. June 1, 2021 - Page 13 of 225 5 5/18/21 B. No Waiver. Delays in enforcement or the waiver of any one or more defaults or breaches of this Agreement by the Town shall not constitute a waiver of any of the other terms or obligation of this Agreement. C. Integration. This Agreement constitutes the entire agreement between the Parties, superseding all prior oral or written communications. D. Third Parties. There are no intended third-party beneficiaries to this Agreement. E. Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when directly presented or sent pre-paid, first class United States Mail to the party at the address set forth on the first page of this Agreement. F. Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be unlawful or unenforceable for any reason, the remaining provisions hereof shall remain in full force and effect. G. Modification. This Agreement may only be modified upon written agreement of the Parties. H. Assignment. Neither this Agreement nor any of the rights or obligations of the Parties hereto, shall be assigned by either Party without the written consent of the other. I. Governmental Immunity. The Town, its officers, and its employees, are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations (presently one hundred fifty thousand dollars ($150,000) per person and six hundred thousand dollars ($600,000) per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to the Town and its officers or employees. J. Rights and Remedies. The rights and remedies of the Town under this Agreement are in addition to any other rights and remedies provided by law. The expiration of this Agreement shall in no way limit the Town's legal or equitable remedies, or the period in which such remedies may be asserted, for work negligently or defectively performed. K. Subject to Annual Appropriation. Consistent with Article X, § 20 of the Colorado Constitution, any financial obligation of the Town not performed during the current fiscal year are subject to annual appropriation, and thus any obligations of the Town hereunder shall extend only to monies currently appropriated and shall not constitute a mandatory charge, requirement, debt or liability beyond the current fiscal year. June 1, 2021 - Page 14 of 225 6 5/18/21 IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first set forth above. TOWN OF VAIL a Colorado Municipal Corporation ____________________________________ Scott Robson Town Manager CONTRACTOR By: Markian Feduschak, President Walking Mountains Science Center STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of ________________, 2021, by ____________________________ as _________________ of ________________________. My commission expires: (S E A L) ____________________________________ Notary Public June 1, 2021 - Page 15 of 225 7 5/18/21 EXHIBIT A SCOPE OF SERVICES See attached Proposal from Walking Mountains Science Center to the Town of Vail June 1, 2021 - Page 16 of 225 8 5/18/21 DEPARTMENT PROGRAM AFFIDAVIT [To be completed only if Contractor participates in the Department of Labor Lawful Presence Verification Program] I, ________________________, as a public contractor under contract with the Town of Vail (the " Town "), hereby affirm that: 1. I have examined or will examine the legal work status of all employees who are newly hired for employment to perform work under this public contract for services ("Agreement") with the Town within twenty (20) days after such hiring date; 2. I have retained or will retain file copies of all documents required by 8 U.S.C. § 1324a, which verify the employment eligibility and identity of newly hired employees who perform work under this Agreement; and 3. I have not and will not alter or falsify the identification documents for my newly hired employees who perform work under this Agreement. ____________________________________ ________________________ Signature Date STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of __________, 2021, by _______________________ as _________________ of ________________________. My commission expires: (S E A L) ___________________________________ Notary Public June 1, 2021 - Page 17 of 225 EXHIBIT A SCOPE OF SERVICES Vail Nature Center Summer 2021 The Contractor will operate the following programs at the Vail Nature Center: Wildflower Walk – (1 hour, 3 days per week) A leisurely one-hour walk through the woods and meadows in which guests learn about the flowers that carpet the mountains and the conditions they need to thrive. Morning Bird Walk – (1 hour, 2 days per week) A morning walk through the meadows and woods along Gore Creek where guests learn about a great variety of birds, what they need to survive, and how to attract birds to their own backyards. Beaver Pond Tour – (1.75 hours, 2 evenings per week) The guest experience begins at the Nature Center with a brief presentation about beavers, followed by a drive to a beaver pond and active lodge. S’Mores and More: Family Campfire Program – (1.5 hours, 2 evenings per week) A warm campfire, nocturnal creatures and the sweet smell of burning marshmallows fill this family program at the Vail Nature Center. Creekside Nature Tours – (1 hour, 2 times per Farmer’s Market) A casual nature walk along Vail’s streamside paths to learn about the importance of riparian ecosystems. Tours depart from the Walking Mountains Science Center booth at the Vail Farmers’ Market on Sundays throughout the summer. Adult Backcountry Hikes & Hiking Club – Naturalist Guides and Wilderness First Responders lead participants on all-day and half-day hikes throughout the White River National Forest. Hikes are offered 3-4 days per week. Hikes are at a pace that allows participants to enjoy the flora and fauna along the trail. Participants should be in healthy condition and accustomed to the altitude. Hike participants must pre-register and bring their own rain gear, lunch, trail snacks, water and a camera. Transportation is provided from the Nature Center. Volunteer Days – Volunteer groups and students assist with trail maintenance and invasive weeds. Custom programming – Walking Mountains may make separate contracts to work with private groups and camps such as its regular programming with VRD’s Camp Eco Fun. The Contractor will operate the Vail Nature Center facilities: • The facility will be open for public visitation during its annual operating season of mid-June to the end of September. Nature exhibits and other interpretive opportunities will be provided by the staff. • Normal days of operation are Mondays-Saturdays with presence at the Vail Farmers’ Market on Sundays. June 1, 2021 - Page 18 of 225 • Staff will monitor and provide basic upkeep on all Vail Nature Center trails. Staff will engage in basic invasive weed management and enforce visitor rules to help protect the area’s biodiversity. The Contractor is responsible for all services above and staffing of the Nature Center, excluding the cost of electrical service, maintenance and cleaning of the interior and exterior of the VNC, including exhibits within the VNC or on the grounds, facilities, signage, and seating, telephone and internet service. 1. Contractor’s Obligations. Contractor shall: (a) Provide all staffing and cover all related costs of wages, contract labor, benefits, payroll taxes, workers comp, uniforms, cell phones, and other costs required to run the Programs. (b) Provide one van for use in transporting staff and Program participants. (c) Supply all operating goods such as supplies, food, inventory or retail items for sale, computer and office supplies, bank and credit card fees, and all other costs required for all Program operations. (d) Pay all of the costs to maintain the required licenses from the US Forest Service and any other permits required for programs offered at the Vail Nature Center; all such licenses and permits shall be maintained in the name of the Contractor, but shall revert to the Town of Vail should the Contractor no longer operate Programs at the Vail Nature Center. (e) Provide an attendance report for all summer programs to the Town of Vail at the end of the season. June 1, 2021 - Page 19 of 225 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 Welcome Centers E arn Gold Certification from C olorado Tourism Office (vailgov.com) June 1, 2021 - Page 20 of 225 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 : Update about A merican C ross Rescue P lan F unds June 1, 2021 - Page 21 of 225 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 : Review P roposed Community P icnic D ates (J uly 13 at B ighorn Park; August 10 at Donovan P avilion) June 1, 2021 - Page 22 of 225 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 : 2020 A udited F inancial S tatements f or the Town of Vail P RE S E NT E R(S ): Kathleen Halloran, F inance Director and Michael J enkins, McMahan and A ssociates AC T IO N RE Q UE S T E D O F C O UNC IL : T he 2020 audited financial statements are presented to Town Council for information only; No action requested. 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 f or public inspection. The 2020 audit was conducted by Mc Mahan and A ssociates. AT TAC H ME N TS : Description ppt Power Point Pr esentation letter report June 1, 2021 - Page 23 of 225 2020 FINANCIAL STATEMENTS & AUDIT REPORTFINANCE | June 1, 2021June 1, 2021 - Page 24 of 225 PRESENTERSKathleen Halloran, C.P.A. Finance DirectorMichael N. Jenkins, C.A., C.P.A. Partner, McMahan & Associates, LLCTown of Vail   |   Finance   |   6/1/2021June 1, 2021 - Page 25 of 225 Town of Vail   |   Finance   |   6/1/20212020 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 $338.5M$208.6M net investment in capital assets$2.4M TABOR reserves; $1.1M restricted; $126.3M unrestrictedSTATEMENT OF ACTIVITIES$17.5M increase in net position$82.8M revenue; $19.6 program specific and $63.2M general revenue$65.3M expensesJune 1, 2021 - Page 26 of 225 Town of Vail   |   Finance   |   6/1/20212020 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 1, 2021 - Page 27 of 225 Town of Vail   |   Finance   |   6/1/20212020 FINANCIAL STATEMENTS | Fund StatementsFinal Budget2020ActualBetter (Worse)%Revenue $42.0M $42.2M $0.2M 0.5%Expenditures (43.0)M (40.0)M 3.0M 7.0%Net Change $(1.0)M $2.2M $3.2M N/AExpenditures –Savings in general operations $1.0M;salaries and benefits savings due to vacancies $568K; planning projects delayed $372K; $504K of cancelled events; $606K of unspent relief program budget carried forward to upcoming yearFund Balance ‐$38.5 million compared with target $15.3 million or 35% of revenueGeneral Fund Favorable to Budget by $3.2MJune 1, 2021 - Page 28 of 225 Town of Vail   |   Finance   |   6/1/20212020 FINANCIAL STATEMENTS | Fund StatementsCapital Projects Fund Managed $12.7M in Projects Final Budget 2020 Actual Better (Worse)Revenue $12.5M $13.5M $1.0MExpenditures (34.4)M (12.7)M 21.7MTransfers and Financing3.3M 2.9M (0.04)MNet Change $(18.6)M $3.7M $22.3MRevenue –Variance due to increased sales tax ($2.5M over budget) reduced by timing of federal grants expected in 2021 Expenditures –Variance for approved projects not yet completed and carried over to 2021 $18.6M;  $3.1M in project savings during 2020Transfers and Financing –VRA funding of Lionshead projects and housing salesFund Balance ‐$46.5MJune 1, 2021 - Page 29 of 225 Town of Vail   |   Finance   |   6/1/20212020 FINANCIAL STATEMENTS | Fund StatementsRETT Fund Managed $2.3M in Projects; $3.1M Ops Final Budget 2020 Actual Better (Worse)Revenue $9.5M $11.1M $1.6MExpenditures (10.6)M (5.4)M 5.2MNet Change $(1.1)M $5.7M $6.7MRevenue –Real estate transfer tax was up 21% from budget, or $1.8MExpenditures–Variance due to approved projects not yet completed and carried over to 2021 $3.7M;  Project savings of 1.5MFund Balance ‐$20.4MJune 1, 2021 - Page 30 of 225 VAIL REINVESTMENT AUTHORITY TAX INCREMENT FINANCING$11.9M issued in 2010 for Lionshead improvements; these bonds were refunded in June through the Refunding Loan, Series 2020The $6.4M Tax Increment Refunding Loan was issued with a 1.19% interest rate saving the town $1.1M. The loan will mature in June 1, 2030.Town of Vail   |   Finance   |   6/1/20212020 FINANCIAL STATEMENTS | Debt FinancingTOWN OF VAIL DEBT *2021*$15.1M issued in 2021 for a redevelopment of the Public Works Shops; This large project would have stretched town reserves to cash fund; Council took advantage of record low interest ratesThe debt was issued with 2.25% interest rate maturing in 2035June 1, 2021 - Page 31 of 225 Town of Vail   |   Finance   |   6/1/20212020 FINANCIAL STATEMENTS | Fund Statements10-Year History and 5-Year Projection of Reserves$72.4$72.9$69.2$55.5$64.9$80.1$82.4$72.5$93.7$103.7$116.6$83.9$75.4$66.2$66.5$69.5 ‐ 20 40 60 80 100 120 140MillionsAll OtherRETT FundCapital ProjectsFundGeneral FundJune 1, 2021 - Page 32 of 225 Town of Vail   |   Finance   |   6/1/2021|   Finance   |   4/19/20162020 FINANCIAL STATEMENTSJune 1, 2021 - Page 33 of 225 McMahan and Associates, L.L.C. Michael Jenkins, CA, CPA, CGMA Partner Town of Vail 2020 Audit Presentation –June 1, 2021 June 1, 2021 - Page 34 of 225 Town of Vail 2020 Audit Presentation –June 1, 2021 Audit Results: Unmodified (“clean”) audit opinion on financial statements + Unmodified (“clean”) audit opinions on compliance & reporting for Town’s use of Federal-source funds = Highest level of auditor assurance June 1, 2021 - Page 35 of 225 Town of Vail 2020 Audit Presentation –June 1, 2021 Financial Results: Government-wide (C1) Highly liquid: $120.3M in cash & investments; provides flexibility Strong asset base: $221.5M of capital assets (net); 2020 additions for electric buses, structural work on parking structures, planning & design for new public works / streets building No direct long-term debt: VRA refunded bonds with lower interest rate loan in 2020 (payable solely from VRA’s revenues) Solid equity position: $126.3M (37%) is unrestricted & available for operations; $208.6M (62%) is net “equity” in capital assets; balance is required reserves June 1, 2021 - Page 36 of 225 Town of Vail 2020 Audit Presentation –June 1, 2021 Financial Results: Government-wide (C2) Total net position increased $17.5M for 2020 (5% increase over PY net position): Governmental net position grew $16.5M Sales & lodging taxes down $5.3M (14%) Real estate transfer taxes up $3.2M (45%) $1.5M of CARES Act funding used for community grants, economic relief / recovery initiatives, and COVID-related expenditures $1.5M of Federal transit grants Business-type activities (Timber Ridge + Dispatch) generated aggregate surplus of $965K June 1, 2021 - Page 37 of 225 Town of Vail 2020 Audit Presentation –June 1, 2021 Financial Results: Fund level Strong financial results: Total governmental fund balances increased $14.7M in 2020 Strong fund balances: Fund balances of all governmental funds as % of total CY expenditures is a measure of financial strength: 2020 metric = 171% (up from 142% for 2019) Provides ability to fulfill future plans and stability needed due to significance of variable revenue sources (sales & lodging taxes) to Town’s operations Budgetary control: All funds performed well relative to and within adopted budgets. June 1, 2021 - Page 38 of 225 Town of Vail 2020 Audit Presentation –June 1, 2021 The Big Picture: Town came through a challenging year with respectable financial results: Revenues grew, due to RETT & grants + Fund balances remained healthy, despite demands, and all funds within approved budgets + Accounting policies & practices are conservative, consistent & compliant. Questions? June 1, 2021 - Page 39 of 225 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 M & A To the Mayor and Members of Town Council Town of Vail, Colorado We have audited the financial statements of the Town of Vail, Colorado (the “Town”) as of and for the year ended December 31, 2020. Professional standards require that we provide you with the following information related to our audit. Qualitative Aspects of Accounting Practices The Town’s management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Town are described in Note I to the 2020 audited financial statements. Financial reporting standards for the Town are promulgated by the Governmental Accounting Standards Board (“GASB”). During 2020, the Town adopted GASB Statement No. 84, Fiduciary Activities (“GASSB 84”). The objective of GASB 84 is to improve financial reporting for fiduciary activities by establishing criteria for identifying fiduciary activities of state and local governments. The presentation of the Town’s pension trust funds was not changed from prior years upon implementation of GASB 84, as the Town continues to recognize the pension trust funds as fiduciary activities. No other new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements are:  Estimating allowance for uncollectible receivables ($1,000 at December 31, 2020), based on management’s experience with customers and other business partners, together with actual collections history since year-end.  Estimating useful lives of fixed assets, based on industry standards and perceived use of asset categories. We evaluated the key factors and assumptions used to develop these assumptions and found them to be reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. June 1, 2021 - Page 40 of 225 To the Mayor and Members of Town Council Town of Vail, Colorado Page 2 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements prior to finalization of the 2020 financial statements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations As is required in all audit engagements, we have requested certain representations from management that were included in the management representation letter. New Financial Reporting Standard Financial reporting standards for the Town are promulgated by GASB. During 2017, GASB issued Statement 87, Leases (“GASB 87”), which will require that governments report certain lease assets and liabilities for leases that previously were classified as operating leases, and recognize inflows or outflows of resources based on the payment provisions of each such contract. In May 2020, GASB issued Statement 95 in response to delays resulting from the COVID-19 pandemic, which postponed the implementation of GASB 87 to fiscal periods beginning after June 15, 2021. We will work with Town staff in the interim to assist with the necessary calculations and presentation considerations for fiscal year 2022. This report is intended solely for the information and use of the Town Council of the Town of Vail, Colorado, its management, and others within the organization and is not intended to be, and should not be, used by anyone other than those specified parties. Sincerely, McMahan and Associates, L.L.C. May 26, 2021 June 1, 2021 - Page 41 of 225 Financial Statements December 31, 2020 June 1, 2021 - Page 42 of 225 i Town of Vail, Colorado Financial Report December 31, 2020 Table of Contents Page(s) INDEPENDENT AUDITOR’S REPORT A1 – A3 Management’s Discussion and Analysis B1 – B7 Government-wide Financial Statements: Statement of Net Position C1 Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 Proprietary Funds: Statement of Net Position C5 Statement of Revenues, Expenses and Changes in Fund Net Position C6 Statement of Cash Flows C7 Fiduciary Funds: Statement of Fiduciary Net Position C8 Statement of Changes in Fiduciary Net Position C9 Notes to the Financial Statements D1 – D27 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual E1 – E2 Major Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual: Vail Marketing Fund E3 Vail Local Marketing District E4 Vail Reinvestment Authority E5 Supplementary Information: Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual F1 Real Estate Transfer Tax Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual F2 Enterprise Funds: Schedule of Revenues, Expenses and Changes in Net Position – Budget (Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis: Timber Ridge Fund F3 Dispatch Services Fund F4 June 1, 2021 - Page 43 of 225 ii Town of Vail, Colorado Financial Report December 31, 2020 Table of Contents (Continued) Page(s) Supplementary Information (continued): Internal Service Funds (continued): Schedule of Revenues, Expenses and Changes in Net Position – Budget (Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis: Heavy Equipment Fund F5 Schedule of Revenues, Expenses and Changes in Net Position – Budget (GAAP Basis) and Actual: Health Insurance Fund F6 Combining Statement of Net Position F7 Combining Statement of Revenues, Expenses and Changes in Fund Net Position F8 Combining Statement of Cash Flows F9 Schedule of Project Expenditures – Budget (GAAP Basis) and Actual: Capital Projects Fund F10 Real Estate Transfer Tax Fund F11 Local Highway Finance Report F12 – F13 Undertaking to Provide Continuing Disclosure: Table I – Vail Reinvestment Authority History of Pledged Revenues G1 Table II – Vail Reinvestment Authority History of Assessed Valuations G1 Table III – Mill Levies Affecting Property Owners within the Vail Reinvestment Authority Plan Area G1 Table IV – Largest Taxpayers in the Authority G2 Table V – 2020 Preliminary Assessed Valuation of Classes of Property in the Authority G2 Table VI – History of Revenues, Expenditures and Changes in Fund Balance – Vail Reinvestment Authority G3 Table VII – 2020 Budget Summary and Actual Comparison / 2021 Budget – Vail Reinvestment Authority G4 Table VIII –Outstanding Revenue Obligations G4 Single Audit Reports and Schedules: Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Audit Standards H1 – H2 Independent Auditor’s Report on Compliance for each Major Program and on Internal Control over Compliance Required by the Uniform Guidance H3 – H4 Schedule of Findings and Questioned Costs H5 – H6 Schedule of Prior Audit Findings and Questioned Costs H7 Schedule of Expenditures of Federal Awards H8 June 1, 2021 - Page 44 of 225 INDEPENDENT AUDITOR’S REPORT June 1, 2021 - Page 45 of 225 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 M ayor and Members of Town Council Town of 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, 2020, 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 We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards. 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, 2020, 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 1, 2021 - Page 46 of 225 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 managem ent 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 com paring 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 com prise 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, budgetar y 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. Additionally, the Schedule of Expenditures of Federal Awards included in the Single Audit section is presented for the purpose of additional analysis, as required by Title 2,U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), and are not a required part of the Town’s financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statement 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 Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the financial statements as a whole. June 1, 2021 - Page 47 of 225 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado A3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 26, 2021 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance. McMahan and Associates, L.L.C. Avon, Colorado May 26, 2021 June 1, 2021 - Page 48 of 225 MANAGEMENT’S DISCUSSION AND ANALYSIS June 1, 2021 - Page 49 of 225 B1 Town of Vail, Colorado Management’s Discussion and Analysis December 31, 2020 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, 2020. 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 2020 fiscal year by $338,448,083 (net position). Of this amount, $2,440,000 is restricted for TABOR emergency reserves and $95,774 is restricted by enabling legislation.  The Town’s total net position increased in the 2020 fiscal year by $17,531,125 which was attributable to an increase from governmental activities of $16,565,728 and an increase of $965,397 from business-type activities.  At December 31, 2020, the fund balance of the General Fund was $38,547,757. Of that amount, $2,436,774 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 1, 2021 - Page 50 of 225 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 and the Debt Service Fund, three Special Revenue Funds (Capital Projects Fund, 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 D27 of this report. June 1, 2021 - Page 51 of 225 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 $329,838,041 at the close of the most recent fiscal year. Approximately 62% 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 2020 and 2019. 2020 2019 2020 2019 2020 2019 Current and other assets $ 138,765,293 $ 124,781,876 $ (1,734,041) $ (2,572,791) $ 137,031,252 $ 122,209,085 Capital assets(net) 210,788,979 210,383,094 10,702,659 10,530,086 221,491,638 220,913,180 Total assets 349,554,272 335,164,970 8,968,618 7,957,295 358,522,890 343,122,265 Long-term liabilities outstanding 7,005,639 8,214,565 91,238 62,975 7,096,877 8,277,540 Other liabilities 7,022,441 7,997,893 267,338 249,675 7,289,779 8,247,568 Total liabilities 14,028,080 16,212,458 358,576 312,650 14,386,656 16,525,108 Deferred inflows 5,688,151 5,680,199 - - 5,688,151 5,680,199 Net Position: Invested in capital assets, net of related debt 204,402,979 202,668,094 4,236,166 3,685,299 208,639,145 206,353,393 Restricted 3,496,696 3,729,416 - 95,000 3,496,696 3,824,416 Unrestricted 121,938,366 106,874,803 4,373,876 3,864,346 126,312,242 110,739,149 Total net position $ 329,838,041 $ 313,272,313 $ 8,610,042 $ 7,644,645 $ 338,448,083 $ 320,916,958 Governmental Activities Business-type Activities Total The Town’s current assets from governmental activities and capital assets increased mainly due to an increase in cash and investments however investments in capital assets also increased over prior year. Major construction projects and asset additions during 2020 included the planning and design of a new public works facility, continued construction of an offsite secondary data center at the West Vail Fire Station, bus replacements, and Gore Creek water quality improvements. The Town’s long-term liabilities from governmental activities decreased due to the refunding of the Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B. In June 2020, these bonds were refunded and the Authority issued a $6,386,000 Tax Increment Refunding Loan. By taking advantage of favorable interest rates, the Town was able to realize $1,115,124 of net present value savings. The interest rate on this loan is 1.19% and the loan will mature in June 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 1, 2021 - Page 52 of 225 B4 Overview of the Financial Statements (continued) The chart below provides financial information from the Town’s Statement of Activities for the years 2020 and 2019. Governmental Activities: Governmental activities increased the Town’s net position by $16,565,728. During 2020, Town revenues were significantly impacted by the COVID-19 pandemic. This included large decreases in annual revenues from some of the Town’s major revenue sources including sales tax, lift tax, parking revenues, lodging tax and use tax. Federal transit and CARES grants, along with record- breaking real estate transfer tax collections, as well as reductions to operating expenditures and the decision to delay some capital projects helped to offset financial impacts from the pandemic. The following items represent significant governmental activities during 2020:  Sales tax collections decreased 14.6% or $4,277,287 compared to 2019. After a steady start to the year, sales tax collections were hit hardest in March and April 2020, down a combined $3M or 53%. Into the summer, the Town began to see sales tax collections recover; however, collections still lagged compared to prior year and were down 19.2% or $1.4 million between the months of May and August. By September, the Town was experiencing record-breaking collections and sales tax collections increased $473K, or 11.6%, between the months of September and November. December sales tax were impacted by the pandemic with increased cases of the virus, as collections were down $595,700 or 14.1%.  Lodging tax was also impacted by the pandemic and decreased $448,447 or 12.1% compared to 2019.  Construction use tax revenues for 2020 decreased by 15.8%, or $389,101. 2020 2019 2020 2019 2020 2019 Revenue: Program Revenue Charges for services 9,311,518$ 11,989,923$ 3,733,375$ 3,760,862$ 13,044,893$ 15,750,785$ Operating grants 5,460,373 2,101,474 888,198 816,452 6,348,571 2,917,926 Capital grants 239,620 1,237,015 - - 239,620 1,237,015 General Revenue Property and ow nership tax 12,798,822 11,200,165 - - 12,798,822 11,200,165 Sales and lodging tax 31,493,497 36,752,908 - - 31,493,497 36,752,908 Other taxes 16,360,699 13,867,113 - - 16,360,699 13,867,113 Interest and other revenue 2,467,780 5,035,965 34,528 93,204 2,502,308 5,129,169 Total Revenue 78,132,309 82,184,563 4,656,101 4,670,518 82,788,410 86,855,081 Expenses: General government 9,081,904 9,149,615 - - 9,081,904 9,149,615 Public safety 12,547,484 12,306,909 2,722,565 2,664,551 15,270,049 14,971,460 Public works and transportation 22,869,246 22,714,499 - - 22,869,246 22,714,499 Culture and recreation 9,234,985 9,668,125 - - 9,234,985 9,668,125 Economic development 7,538,908 8,281,002 - - 7,538,908 8,281,002 Housing - - 968,139 954,647 968,139 954,647 Interest 294,054 500,258 - - 294,054 500,258 Total Expenses 61,566,581 62,620,408 3,690,704 3,619,198 65,257,285 66,239,606 Change in Net Position 16,565,728 19,564,155 965,397 1,051,320 17,531,125 20,615,475 Net Position January 1 313,272,313 293,708,158 7,644,645 6,593,325 320,916,958 300,301,483 Net Position December 31 329,838,041$ 313,272,313$ 8,610,042$ 7,644,645$ 338,448,083$ 320,916,958$ Town of Vail's Changes in Net Position Total Governmental Activities Business-type Activities June 1, 2021 - Page 53 of 225 B5 Overview of the Financial Statements (continued)  Lift tax revenues decreased 23.3% or $1,245,557 over the prior year, due the closure of Vail Mountain in March and April, and then decreased skier visitation in December.  Parking revenue were negatively impacted by the pandemic, with revenues were down 27.2%, or $1,829,856 over prior year.  With office closures and an increase in remote work, the Town experienced record-breaking Real Estate Transfer Tax collections. The Town collected $10.5 million in real estate transfer tax; an increase $3.2 million or 44.6% over the prior year.  During the 2019 election, Vail residents passed a new tobacco tax. The town collected tobacco tax revenues of $531,913 in 2020.  The Town was awarded $1.45 million in Federal CARES funding during 2020. $1.3M of this has been used towards community grants programs, COVID-related expenditures, and economic relief and recovery initiatives.  The Town was also awarded $1.5 million in Federal transit grants, which was used to offset the Town’s transit operating expenditures. 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 $120,127,312 an increase of $14,717,622 from the prior year’s ending fund balances primarily due to increased real estate transfer tax collections and Federal grant funding combined with a reductions in summer marketing expenditures, reductions in operating expenditures, and the postponement of some large construction projects in the Capital Project and Real Estate Transfer Tax funds as compared to the prior year. The following details ending fund balances for the past five years: Fund 2016 2017 2018 2019 2020 General Fund $27,300,260 $29,289,331 $33,888,140 $36,306,665 $38,547,757 Capital Projects Fund 44,836,870 32,761,887 46,845,813 50,099,177 53,843,487 Real Estate Transfer Tax 11,256,285 11,142,914 12,957,553 14,684,013 20,353,072 Vail Marketing Fund 259,452 323,606 303,241 386,835 387,124 Vail Local Marketing District 1,590,734 1,260,297 1,270,453 1,350,108 2,078,809 Vail Reinvestment Authority 4,312,149 3,064,772 2,259,307 2,582,892 4,917,063 Total $75,823,574 $89,161,687 $89,555,750 $105,409,690 $120,127,312 The Town’s reserves continue to be strong allowing for the cash funding on many recent capital projects. In 2016, the General Fund balance increased by $3.7 million from prior year; in part due to increases in sales tax, parking revenue, property taxes, and lift tax. Expenditure savings of $2.4 million also contributed to the increase in reserves. In 2017, the General Fund reserves increased by $2.0 million, primarily due to expenditure savings from staffing vacancies and department operational savings, while overall revenue collections remained flat. During 2018, General Fund reserves increased by $4.6 million, primarily due increased sales tax collections, revenues related to construction activity, as well as expenditure savings due to staffing vacancies and department operations savings. June 1, 2021 - Page 54 of 225 B6 Financial Analysis of the Town’s Funds (continued) In 2019, General Fund reserves increased by $2.4 million due to an increase in sales tax collections, parking sales, and lift tax collections, as well as expenditures savings due to vacancies. Despite significant reductions in annual sales tax collections, lift tax, parking sales, and construction use tax, reserves across all funds increased $14.7 million in 2020. The majority of that increase ($11.7 million) was the result of record-breaking real estate transfer tax collections of $10.4 million, combined with delayed timing in capital projects in the Real Estate Transfer Tax, Capital Projects, and Vail Reinvestments Authority funds. General Fund reserves increased $2.2 million in 2020. This was primarily due to Federal CARES and transit grants, combined with reductions in operating expenditures. Better than expected sales tax collections during the months of September, October, and November also contributed to the increase. 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 $6.9 million in 2020, providing a funding mechanism for capital improvements within the district by covering annual debt service payments of $555 thousand relating to $11.9 million in bonds issued in 2010. The bonds funded several projects including the Red Sandstone parking structure, the Sandstone underpass, Zeke M. Pierce Skate Parks, and a new Transit and Welcome Center. In June 2020, the Town took advantage of favorable interest rates and the bonds were refunded with a Tax Increment Revenue Refunding Loan. The loan will mature June 1, 2030. Over the last five years the town’s strong reserve levels have enabled Town Council to cash-fund all capital projects. While budget basis reserves at the end of 2020 were at $116.6M, they are expected to decrease to $83.7M in 2021 with current ongoing projects. 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 (the “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. June 1, 2021 - Page 55 of 225 B7 Financial Analysis of the Town’s Funds (continued) Capital Assets: The Town’s government-wide capital assets, net of accumulated depreciation, increased by $405,887 in 2020. Capital additions included six new electric buses, planning and design for the reconstruction of a new public works and streets buildings, electric bus charging infrastructure, a new public safety records management system, and major structural repairs at both the Vail Village and Lionshead parking structures. The Town also invested $1.5 million in the Town’s Vail InDeed program and added 22 new deed restricted units for the community. Long-term Debt: As of the end of the current fiscal year, the Vail Reinvestment Authority had $6,386,000 of tax increment revenue refunding loan outstanding, of which $618,000 of bond principal is due within one year. Additional information regarding the Authority's debt can be found in the Notes to the Financial Statements in footnote IV.G of this report. Sales Tax: During 2020, 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 14.6% decline in sales tax collections in 2020, 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 $38,547,757, representing 88% of annual revenue compared to Town Council’s directive of a minimum of 35%. 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 South Frontage Road, Vail, Colorado 81657. June 1, 2021 - Page 56 of 225 GOVERNMENT-WIDE FINANCIAL STATEMENTS June 1, 2021 - Page 57 of 225 Governmental Business-type Activities Activities Total Assets: Equity in pooled cash and investments 107,042,952 2,305,990 109,348,942 Unrestricted cash and investments 8,305,336 2,183,974 10,489,310 Cash - Restricted 406,821 88,685 495,506 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 5,688,151 - 5,688,151 Other taxes 6,067,581 - 6,067,581 Other governments 1,361,355 - 1,361,355 Other 736,334 83,925 820,259 Inventory 343,504 - 343,504 Prepaid expenses 410,650 207 410,857 Interest receivable 34,165 - 34,165 Internal balances 7,366,493 (7,366,493) - Rent receivable - 969,671 969,671 Loans receivable: Collectible in more than one year 1,001,951 - 1,001,951 Deferred debt refunding costs - - - Capital assets not being depreciated 51,650,020 4,399,500 56,049,520 Capital assets being depreciated, net of accumulated depreciation 159,138,959 6,303,159 165,442,118 Total Assets 349,554,272 8,968,618 358,522,890 Liabilities: Accounts payable 2,161,457 55,965 2,217,422 Due to other governments 175,041 - 175,041 Retainage payable 163,754 - 163,754 Accrued salaries and wages 959,007 50,041 1,009,048 Interest payable 6,263 34,166 40,429 Other unearned revenue 2,113,053 237 2,113,290 Deposits payable 295,449 88,684 384,133 Compensated absences: Due within one year 530,417 38,245 568,662 Due in more than one year 1,237,639 91,238 1,328,877 Bonds payable: Due within one year 618,000 - 618,000 Due in more than one year 5,768,000 - 5,768,000 Total Liabilities 14,028,080 358,576 14,386,656 Deferred Inflow of Resources: Unavailable property taxes 5,688,151 - 5,688,151 Net Position: Net investment in capital assets 204,402,979 4,236,166 208,639,145 Restricted for: Debt service 960,922 - 960,922 Emergencies 2,440,000 - 2,440,000 Other purposes 95,774 - 95,774 Unrestricted 121,938,366 4,373,876 126,312,242 Total Net Position 329,838,041 8,610,042 338,448,083 Town of Vail, Colorado Statement of Net Position December 31, 2020 The accompanying notes are an integral part of these financial statements. C1 June 1, 2021 - Page 58 of 225 Net (Expense) Revenue andProgram Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business-typeExpenses Services Contributions Contributions Activities Activities TotalGovernmental Activities: General government 9,081,904 3,263,714 4,634,279 - (1,183,911) (1,183,911) Public safety 12,542,636 379,542 - - (12,163,094) (12,163,094) Public works and transportation 22,869,246 5,112,171 539,644 139,522 (17,077,909) (17,077,909) Culture and recreation 9,234,985 212,189 286,450 - (8,736,346) (8,736,346) Economic development 7,538,908 343,902 - 100,098 (7,094,908) (7,094,908) Interest on long-term debt 294,054 - - - (294,054) (294,054) Total - Governmental Activities61,561,733 9,311,518 5,460,373 239,620 (46,550,222) (46,550,222) Business-type Activities: Dispatch services 2,722,564 1,991,146 888,198 - 156,780 156,780 Housing (Timber Ridge) 968,140 1,742,229 - - 774,089 774,089 Total - Business-type Activities3,690,704 3,733,375 888,198 - 930,869 930,869 Totals65,252,437 13,044,893 6,348,571 239,620 (46,550,222) 930,869 (45,619,353) General Revenues:Taxes: Sales and use taxes28,230,236 - 28,230,236 Real estate transfer taxes10,448,526 - 10,448,526 Lodging taxes3,263,261 - 3,263,261 Property and specific ownership taxes12,798,822 - 12,798,822 Ski area lift ticket admissions tax4,095,812 - 4,095,812 Franchise taxes1,284,448 - 1,284,448 Tobacco taxes531,913 - 531,913 Investment earnings894,127 16,358 910,485 Gain on disposal of capital assets365,056 - 365,056 Miscellaneous1,208,597 13,322 1,221,919 Transfers(4,848) 4,848 - Total - General Revenues and Transfers63,115,950 34,528 63,150,478 Change in Net Position16,565,728 965,397 17,531,125 Net Position - January 1313,272,313 7,644,645 320,916,958 Net Position - December 31329,838,041 8,610,042 338,448,083 Town of Vail, ColoradoStatement of ActivitiesFor the Year Ended December 31, 2020The accompanying notes are an integral part of these financial statements.C2June 1, 2021 - Page 59 of 225 FUND FINANCIAL STATEMENTS June 1, 2021 - Page 60 of 225 Vail Vail Local Vail Capital Real Estate Total General Marketing Marketing Reinvestment Projects Transfer Tax Governmental Fund Fund District Authority Fund Fund Funds Assets: Equity in pooled cash and investments 32,908,931 602,016 - - 46,522,476 20,069,622 100,103,045 Cash and cash equivalents - Unrestricted 13,892 - 1,438,493 6,852,951 - - 8,305,336 Cash and cash equivalents - Restricted - - - - - - - Receivables, net: Property taxes assessed 5,688,151 - - - - - 5,688,151 Other taxes 4,954,555 28,110 641,080 - - 471,946 6,095,691 Other governments 1,301,434 4,290 - - 16,547 36,018 1,358,289 Other 624,513 - - - - 6,635 631,148 Due from other funds - - - - 1,809,400 - 1,809,400 Loans receivable 1,001,951 - - - 7,366,493 - 8,368,444 Prepaid expenses 120,719 79,790 - - 200,091 9,550 410,150 Total Assets 46,614,146 714,206 2,079,573 6,852,951 55,915,007 20,593,771 132,769,654 Liabilities and Fund Balances: Liabilities: Accounts payable 796,323 223,166 764 126,488 379,591 55,878 1,582,210 Due to other governments 110,948 - - - 555 63,538 175,041 Due to other funds - - - 1,809,400 - - 1,809,400 Retainage payable - - - - 152,046 11,708 163,754 Accrued payroll and related liabilities 815,284 - - - - - 815,284 Unearned revenue 360,234 103,916 - - 1,539,328 109,575 2,113,053 Deposits payable 295,449 - - - - - 295,449 Total Liabilities 2,378,238 327,082 764 1,935,888 2,071,520 240,699 6,954,191 Deferred Inflows of Resources: Property taxes 5,688,151 - - - - - 5,688,151 Fund Balances: Non-spendable 1,122,670 79,790 - - 7,566,584 9,550 8,778,594 Restricted 2,436,774 - 99,000 - - - 2,535,774 Committed 10,663,298 307,334 1,979,809 - 42,241,050 20,343,522 75,535,013 Assigned - - - 4,917,063 4,035,853 - 8,952,916 Unassigned 24,325,015 - - - - - 24,325,015 Total Fund Balances 38,547,757 387,124 2,078,809 4,917,063 53,843,487 20,353,072 120,127,312 Total Liabilities and Fund Balances 46,614,146 714,206 2,079,573 6,852,951 55,915,007 20,593,771 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.205,249,544 Other long-term assets and unearned charges are not available as current financial resources and, therefore, are not reported in the funds.440,986 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.12,247,170 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.(8,226,971) Net Position of Governmental Activities 329,838,041 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2020 Special Revenue Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. C3 June 1, 2021 - Page 61 of 225 Vail Vail Local Vail Capital Real Estate Total General Marketing Marketing Reinvestment Projects Transfer Tax Governmental Fund Fund District Authority Fund Fund Funds Revenues: Taxes 27,010,358 - 3,263,261 6,851,562 12,189,932 10,448,526 59,763,639 Permits and licenses 2,071,460 343,902 - - 76,053 - 2,491,415 Intergovernmental revenue 5,331,226 - - - 139,522 215,216 5,685,964 Charges for services 7,234,964 - - - 163,909 181,237 7,580,110 Investment income 309,551 1,997 272 21,328 401,257 111,326 845,731 Interest subsidy - - - 100,098 - - 100,098 Miscellaneous 247,829 - 3,174 - 510,443 109,565 871,011 Total Revenues 42,205,388 345,899 3,266,707 6,972,988 13,481,116 11,065,870 77,337,968 Expenditures: General government 8,180,976 - - - - - 8,180,976 Public safety 11,565,991 - - - - 223,419 11,789,410 Public works and transportation 15,582,001 - - - 12,669,368 2,298,893 30,550,262 Culture and recreation 1,184,840 - - - - 2,877,499 4,062,339 Economic development 1,799,673 1,998,788 2,538,006 1,067,143 - - 7,403,610 Debt service: Principal - - - 7,715,000 - - 7,715,000 Interest - - - 327,914 - - 327,914 Total Expenditures 38,313,481 1,998,788 2,538,006 9,110,057 12,669,368 5,399,811 70,029,511 Excess (Deficiency) of Revenues Over Expenditures 3,891,907 (1,652,889) 728,701 (2,137,069) 811,748 5,666,059 7,308,457 Other Financing Sources (Uses): Sale of assets 7,211 - - - 1,126,162 - 1,133,373 Debt proceeds, net - - - 6,280,640 - - 6,280,640 Transfers in - 1,653,178 - - 1,809,400 3,000 3,465,578 Transfers (out)(1,658,026) - - (1,809,400) (3,000) - (3,470,426) Total Other Financing Sources (Uses)(1,650,815) 1,653,178 - 4,471,240 2,932,562 3,000 7,409,165 Net Change in Fund Balances 2,241,092 289 728,701 2,334,171 3,744,310 5,669,059 14,717,622 Fund Balances - January 1 36,306,665 386,835 1,350,108 2,582,892 50,099,177 14,684,013 105,409,690 Fund Balances - December 31 38,547,757 387,124 2,078,809 4,917,063 53,843,487 20,353,072 120,127,312 Net Change in Fund Balances of Governmental Funds 14,717,622 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.103,517 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.709,376 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.7,715,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. By contrast, debt proceeds provide current financial resources to governmental funds, but has no effect on net position.(6,467,716) Some expenses reported in the Statement of Activities - such as changes in accrued interest and compensated absences - do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (212,071) Change in Net Position of Governmental Activities 16,565,728 Special Revenue Funds Capital Projects Funds Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2020 The accompanying notes are in integral part of these financial statements. C4 June 1, 2021 - Page 62 of 225 Governmental Dispatch Activities - Services Internal Timber Ridge Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 2,305,990 2,305,990 6,939,907 Cash and cash equivalents - Unrestricted 2,183,974 - 2,183,974 - Accounts receivable, net of allowance for uncollectibles 80,827 3,098 83,925 80,142 Inventory - - - 343,504 Prepaid expenses 207 - 207 500 Total - Current Assets 2,265,008 2,309,088 4,574,096 7,364,053 Non-current Assets: Cash and cash equivalents - Restricted 88,685 - 88,685 - Rent receivable 969,671 - 969,671 - Property, plant, and equipment, net of accumulated depreciation 9,698,879 1,003,780 10,702,659 5,539,435 Total - Non-current Assets 10,757,235 1,003,780 11,761,015 5,539,435 Total Assets 13,022,243 3,312,868 16,335,111 12,903,488 Liabilities: Current Liabilities: Accounts payable 26,727 29,238 55,965 579,247 Accrued salaries and wages - 50,041 50,041 24,723 Interest payable 34,166 - 34,166 - Unearned revenue 237 - 237 - Deposits payable 88,684 - 88,684 - Current portion of notes payable 383,969 - 383,969 - Current portion of compensated absences - 38,245 38,245 15,704 Total - Current Liabilities 533,783 117,524 651,307 619,674 Non-current Liabilities: Notes payable, net of current portion 6,982,524 - 6,982,524 - Compensated absences, net of current portion - 91,238 91,238 36,644 Total - Non-current Liabilities 6,982,524 91,238 7,073,762 36,644 Total Liabilities 7,516,307 208,762 7,725,069 656,318 Net Position: Net investment in capital assets 3,232,386 1,003,780 4,236,166 5,539,435 Unrestricted 2,273,550 2,100,326 4,373,876 6,707,735 Total Net Position 5,505,936 3,104,106 8,610,042 12,247,170 Town of Vail, Colorado Proprietary Funds Statement of Net Position December 31, 2020 Business-type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. C5 June 1, 2021 - Page 63 of 225 Governmental Dispatch Activities - Services Internal Timber Ridge Fund TOTAL Service Funds Operating Revenues: Charges for services - Internal - 661,194 661,194 7,001,136 Charges for services - External - 1,329,952 1,329,952 858,159 Rents 1,587,080 - 1,587,080 - Ground lease 155,149 - 155,149 - Insurance reimbursements - - - 1,430 Other 13,322 - 13,322 13,277 Total Operating Revenues 1,755,551 1,991,146 3,746,697 7,874,002 Operating Expenses: Operations 501,688 2,590,495 3,092,183 2,263,277 Health claims and premiums - - - 4,414,183 Depreciation 355,481 132,069 487,550 798,321 Total Operating Expenses 857,169 2,722,564 3,579,733 7,475,781 Operating Income (Loss)898,382 (731,418) 166,964 398,221 Non-Operating Revenues (Expenses): Intergovernmental revenues - 888,198 888,198 29,492 Gain (loss) on disposal of assets - - - 158,044 Investment income 4,664 11,694 16,358 50,761 Interest expense (110,971) - (110,971) - Total Non-Operating Revenues (Expenses)(106,307) 899,892 793,585 238,297 Income (Loss) Before Transfers and Capital Contributions 792,075 168,474 960,549 636,518 Transfers, net - 4,848 4,848 - Capital Contributions, net - - - 72,858 Change in Net Position 792,075 173,322 965,397 709,376 Net Position - January 1 4,713,861 2,930,784 7,644,645 11,537,794 Net Position - December 31 5,505,936 3,104,106 8,610,042 12,247,170 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2020 Business-type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. C6 June 1, 2021 - Page 64 of 225 Governmental Dispatch Activities - Services Internal Timber Ridge Fund TOTAL Service Funds Cash Flows From Operating Activities: Cash received from other funds - 661,194 661,194 7,001,136 Cash received from tenants for rent 1,505,983 - 1,505,983 - Other cash receipts 13,322 1,629,670 1,642,992 820,616 Cash paid for goods and services (526,789) (459,032) (985,821) (5,664,061) Cash paid to employees - (2,056,605) (2,056,605) (1,074,635) Net Cash Provided (Used) by Operating Activities 992,516 (224,773) 767,743 1,083,056 Cash Flows From Non-Capital Financing Activities: Transfer (to) other funds (378,294) - (378,294) - Transfer from other funds - 4,848 4,848 - Cash received from operating grants - 888,198 888,198 29,492 Net Cash Provided (Used) by Non-Capital Financing Activities (378,294) 893,046 514,752 29,492 Cash Flows From Capital and Related Financing Activities: Cash received on disposal of fixed assets - - - 158,570 Interest paid (113,335) - (113,335) - Acquisition and construction of capital assets (389,498) (270,625) (660,123) (1,028,360) Net Cash Provided (Used) by Capital and Related Financing Activities (502,833) (270,625) (773,458) (869,790) Cash Flows From Investing Activities: Interest on investments 4,664 11,694 16,358 50,761 Net Cash Provided (Used) by Investing Activities 4,664 11,694 16,358 50,761 Net Increase (Decrease) in Cash and Cash Equivalents 116,053 409,342 525,395 293,519 Cash and Cash Equivalents - January 1 2,156,606 1,896,648 4,053,254 6,646,388 Cash and Cash Equivalents - December 31 2,272,659 2,305,990 4,578,649 6,939,907 Cash and Cash Equivalents at December 31 is Comprised of: Equity in pooled cash and investments - 2,305,990 2,305,990 6,939,907 Cash and cash equivalents - Unrestricted 2,183,974 - 2,183,974 - Cash and cash equivalents - Restricted 88,685 - 88,685 - Total - Cash and Cash Equivalents 2,272,659 2,305,990 4,578,649 6,939,907 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income/(Loss)898,382 (731,418) 166,964 398,221 Adjustments: Depreciation 355,480 132,069 487,549 798,321 (Increase) decrease in accounts receivable - 299,718 299,718 (52,250) (Increase) decrease in rent receivable (234,783) - (234,783) - (Increase) decrease in prepaid expenses 5 - 5 - Increase (decrease) in accounts payable (25,101) 16,775 (8,326) (12,910) Increase (decrease) in tenant security deposits (1,618) - (1,618) - Increase (decrease) in prepaid rent 151 - 151 - Increase (decrease) in accrued wages and benefits - 58,083 58,083 4,492 Total Adjustments 94,134 506,645 600,779 684,835 Net Cash Provided (Used) by Operating Activities 992,516 (224,773) 767,743 1,083,056 Non-cash Investing, Capital and Financing Activities: Assets contributed by Capital Projects Fund - - - 72,858 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2020 Business-type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. C7 June 1, 2021 - Page 65 of 225 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 86,441,599 22,672,292 Loans to participants 500,417 - Total Assets 86,942,016 22,672,292 Net Position: Held in trust for pension benefits and other purposes 86,942,016 22,672,292 Total Net Position 86,942,016 22,672,292 Town of Vail, Colorado Pension Trust Funds Statement of Fiduciary Net Position December 31, 2020 The accompanying notes are an integral part of these financial statements. C8 June 1, 2021 - Page 66 of 225 Deferred Pension Compensation Trust Plan Additions: Contributions: Contributions 3,408,130 1,380,075 Net investment earnings: Investment earnings 9,796,773 2,509,783 Investment expenses (90,367) (22,184) Net investment earnings 9,706,406 2,487,599 Total Additions 13,114,536 3,867,674 Deductions: Benefits paid 4,567,039 1,035,150 Total Deductions 4,567,039 1,035,150 Change in Net Position 8,547,497 2,832,524 Net Position - January 1 78,394,519 19,839,768 Net Position - December 31 86,942,016 22,672,292 Town of Vail, Colorado Pension Trust Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2020 The accompanying notes are an integral part of these financial statements. C9 June 1, 2021 - Page 67 of 225 NOTES TO THE FINANCIAL STATEMENTS June 1, 2021 - Page 68 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 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 (“VLMD”), and Vail Reinvestment Authority (“VRA”). 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 VLMD 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 VLMD’s Board of Directors. VLMD is reported as a special revenue fund. 2. Vail Reinvestment Authority VRA 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 VRA 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. VRA is reported as a special revenue fund. June 1, 2021 - Page 69 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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, 2020, 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 1, 2021 - Page 70 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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 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 VLMD’s activities. The Vail Reinvestment Authority accounts for the collection of Tax Increment Financing revenues which are restricted for use for the activities of VRA. 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 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 1, 2021 - Page 71 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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. Fiduciary 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 fiduciary 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 1, 2021 - Page 72 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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 1, 2021 - Page 73 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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 1, 2021 - Page 74 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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 exceeding 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 the acquisition value as of the date received. 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 1, 2021 - Page 75 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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. 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. 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 1, 2021 - Page 76 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D9 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 11. 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.K. General Fund Vail Marketing Fund Vail Local Marketing Disctict Vail Reinvestment Authority Capital Projects Fund Real Esate Transfer Tax Fund Nonspendable: Non-current receivables 1,001,951$ -$ -$ -$ -$ -$ Loans to other funds - - - - 7,366,493 - Prepaid items 120,719 79,790 - - 200,091 9,550 Total - Nonspendable 1,122,670$ 79,790$ -$ -$ 7,566,584$ 9,550$ Restricted: Emergency reserve 2,341,000$ -$ 99,000$ -$ -$ -$ Police Funds 95,774 - - - - - Total - Restricted 2,436,774$ -$ 99,000$ -$ -$ -$ Committed: Employee housing ownership program 111,951$ -$ -$ -$ -$ -$ Capital projects - - - - 37,017,628 - Parks and recreation - - - - - 20,343,522 Housing - - - - 5,223,422 - Operating reserve 10,551,347 - - - - - Destination marketing - 307,334 1,979,809 - - - Total - Committed 10,663,298$ 307,334$ 1,979,809$ -$ 42,241,050$ 20,343,522$ Assigned: Capital maintenance -$ -$ -$ -$ 4,035,853$ -$ Debt service - - - 4,917,063 - - Total - Assigned -$ -$ -$ 4,917,063$ 4,035,853$ -$ June 1, 2021 - Page 77 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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 When both restricted and unrestricted resources are available for use, it is the Town’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 a reconciliation between the total fund balances of 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 $205,249,544 difference is related to property, plant and equipment of $375,652,970 less accumulated depreciation of $170,403,426. Another element of that reconciliation explains “Other long-term assets and unearned charges are not available as current financial resources and, therefore, are not reported in the funds.” This $440,986 difference is comprised of pension forfeitures of $406,821 and interest receivable of $34,165. Net position totaling $12,247,170 for internal service funds used by management to charge the costs of heavy equipment and health insurance to individual funds is included in the governmental activities in the Statement of Net Position. Additionally, the reconciliation states that “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.“ This $8,226,971 difference is related to bonds and notes payable of $6,386,000; accrued compensated absences of $1,715,708; retirement bonus payable of $119,000; and interest payable of $6,263. June 1, 2021 - Page 78 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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 a reconciliation between the net change in fund balances of governmental funds and the change 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.” This $103,517 difference is comprised of capital outlay of $11,500,180 less depreciation expense of $10,470,302; and net book value of disposed assets of $926,361. III. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town’s Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds, except the Heavy Equipment Fund, Timber Ridge Enterprise Fund, and Dispatch Services Fund. As required by Colorado statutes, all funds have legally adopted budgets and appropriations. Total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if offset by unanticipated revenues. All appropriations lapse at year-end. The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: Timber Ridge Dispatch Heavy Enterprise Services Equipment Fund Fund Fund Change in Net Position - Budget Basis 379,764$ 74,284$ 107,892$ add/(less): Contribution from Capital Projects Fund - - 72,858 Loan principal repayment to Capital Projects Fund 378,294 - - Change in accrued compensated absences - (39,519) (51) Capitalized assets 389,498 270,626 1,091,461 Net book value of disposed assets - - (527) Depreciation (355,481) (132,069) (798,321) Change in Net Position - GAAP Basis 792,075$ 173,322$ 473,312$ June 1, 2021 - Page 79 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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 2020: (1) For the 2020 budget year, prior to August 25, 2019, 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 2019 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2019, 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. Property taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2019 were collected in 2020 and taxes certified in 2020 will be collected in 2021. 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. VLMD’s budget timetable varies from the Town’s. VLMD followed these procedures in preparing, approving, and enacting its budget for 2020: (1) On or before September 30, 2019, VLMD must submit to the Board a recommended budget that details the revenues necessary to meet VLMD's operating requirements. This was done on September 15, 2019. (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, 2019. The Board adopted the 2020 budget on December 1, 2019. (3) After adoption of the initial budget resolution, VLMD 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. During the year, supplemental appropriations were necessary for certain of the funds of Town, VLMD, and VRA. The budgetary comparison schedules reflect the original budget and the final budget after legally authorized revisions were made. June 1, 2021 - Page 80 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D13 III. Stewardship, Compliance, and Accountability (continued) 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, 2020 fund balance in the General Fund for this purpose in the amount of $2,341,000, which is the approximate required reserve. The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town’s electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are:  Voter approval of all new taxes and tax rate increases;  Voter approval for new or additional Town debt;  No increase or imposition of a new real estate transfer tax; and,  All election requirements remain in effect. 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. June 1, 2021 - Page 81 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D14 III. Stewardship, Compliance, and Accountability (continued) D. TABOR Amendment – Vail Local Marketing District As required by TABOR, VLMD has reserved $99,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2020. The ballot question approved by VLMD voters on November 2, 1999, which established the 1.4% tax on lodging within the Town’s boundaries, also authorized VLMD 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. VLMD’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 $24,058,065. The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2020. Fair Value of Investments: The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. June 1, 2021 - Page 82 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D15 IV. Detailed Notes on all Funds (continued) A. Deposit and Investments (continued) At December 31, 2020, the Town had the following recurring fair value measurements: Fair Value Measurements Using Investments Measured at Fair Value: Total Level 1 Level 2 Level 3 Certificates of deposit 9,315,039$ -$ 9,315,039$ -$ Government agency securities 550,605 - 550,605 - Mortgage pools 11,594,448 - - 11,594,448 Total 21,460,092$ -$ 9,865,644$ 11,594,448$ Investments Measured at Net Asset Value: COLOTRUST 63,795,233$ 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 an 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 $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. COLOTRUST is rated AAAm by Standard and Poor’s. Interest Rate Risk: As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk: The Town’s general investment policy is to apply the prudent-person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. Concentration of Credit Risk: The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments, are as follows at year end: Investment Type Rating Percentage COLOTRUST AAAm 34% June 1, 2021 - Page 83 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D16 IV. Detailed Notes on all Funds (continued) A. Deposit and Investments (continued) At year end, the Town had the following investments and maturities: Carrying Type Rating Maturities Value Deposits: Cash on hand 1,980$ Demand deposits 35,076,453 Certificates of deposit <1 year 3,548,167 Certificates of deposit <5 years 5,766,872 Total - Deposits 44,393,472$ Investments: US agencies - FHLMC, FHLB, FNMA AA+<5 years 550,605$ Mortgage pools AA+N/A 11,594,448 COLOTRUST AAAm N/A 63,795,233 Pension and Section 457 investments N/A N/A 109,614,308 Total - Investments 185,554,594$ Total deposits and investments 229,948,066$ Reconciliation to Statement of Net Position: Equity in pooled cash and investments 109,348,942$ Cash and cash equivalents - Unrestricted 10,489,310 Cash and cash equivalents - Restricted 495,506 Fiduciary funds 109,614,308 Total 229,948,066$ 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 1, 2021 - Page 84 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (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: Vail Vail Local Vail Capital Real Estate General Marketing Marketing Reinvestment Projects Transfer Fund Fund District Authority Fund Tax Fund Receivables: Property taxes 5,688,151$ -$ -$ -$ -$ -$ Other taxes 4,954,555 28,110 641,080 - - 471,946 Other governments 1,301,434 4,290 - - 16,547 36,018 Other 625,513 - - - - 6,635 Receivables - Gross 12,569,653 32,400 641,080 - 16,547 514,599 Less: Allowance for uncollectibles (1,000) - - - - - Receivables, net 12,568,653$ 32,400$ 641,080$ -$ 16,547$ 514,599$ Dispatch Heavy Health Timber Services Equipment Insurance Ridge Fund Fund Fund Total Receivables: Property taxes -$ -$ -$ -$ 5,688,151$ Other taxes - - - - 6,095,691 Other governments - - - - 1,358,289 Other 80,827 3,098 74,077 6,065 796,215 Receivables - Gross 80,827 3,098 74,077 6,065 13,938,346 Less: Allowance for uncollectibles - - - - (1,000) Receivables, net 80,827$ 3,098$ 74,077$ 6,065$ 13,937,346$ 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 $2,113,053 and is comprised of the following: Vail Capital Real Estate General Marketing Projects Transfer Tax Fund Fund Fund Fund Total Unearned revenues: Business licenses -$ 103,916$ -$ -$ 103,916$ Art projects - - - 35,781 35,781 Environmental programs - - - 73,794 73,794 Federal grants 135,964 - - - 135,964 Library grants 142,255 - - - 142,255 Police programs 68,587 - - - 68,587 EHOP interest payment payoff 13,428 - - - 13,428 Construction projects - - 1,539,328 - 1,539,328 360,234$ 103,916$ 1,539,328$ 109,575$ 2,113,053$ June 1, 2021 - Page 85 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D18 IV. Detailed Notes on all Funds (continued) B. Receivables (continued) Unearned revenue for construction projects in the Capital Projects Fund includes $347,885 collected from Holy Cross Energy for community enhancement to place utilities underground. The other $1,191,443 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. Loans receivable at December 31, 2020 are comprised of amounts due under the Town’s EHOP Program, which assists qualified full-time Town employees with the purchase of a primary residence within certain geographic boundaries, by providing secured, non- interest bearing loans. Repayment of loans made under the EHOP Program is over a maximum 15-year term, including 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, 2020 was $1,001,951. C. Capital Assets Capital asset activity for the Town’s governmental activities during 2020 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 25,236,381$ -$ (251,172)$ 24,985,209$ Art 3,012,864 7,000 - 3,019,864 Construction in Process 21,133,302 3,249,860 (15,233,157) 9,150,005 Intangibles 12,892,927 1,602,015 - 14,494,942 Total Capital Assets, Not Being Depreciated 62,275,474 4,858,875 (15,484,329) 51,650,020 Capital Assets, Being Depreciated: Buildings and improvements 113,928,956 673,698 (1,641,908) 112,960,746 Infrastructure and improvements 156,036,072 16,569,961 (37,529) 172,568,504 Equipment and vehicles 48,111,330 5,722,170 (1,244,686) 52,588,814 Total Capital Assets Being Depreciated 318,076,358 22,965,829 (2,924,123) 338,118,064 Less Accumulated Depreciation For: Buildings and improvements (60,590,198) (2,625,643) 1,099,875 (62,115,966) Infrastructure and improvements (79,604,435) (5,597,899) 30,769 (85,171,565) Equipment and vehicles (29,774,107) (3,045,081) 1,127,614 (31,691,574) Total Accumulated Depreciation (169,968,740) (11,268,623) 2,258,258 (178,979,105) Total Capital Assets Being Depreciated, Net 148,107,618 11,697,206 (665,865) 159,138,959 Governmental Activities Capital Assets, Net 210,383,092$ 16,556,081$ (16,150,194)$ 210,788,979$ June 1, 2021 - Page 86 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D19 IV. Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the Town’s business-type activities during 2020 was as follows: Beginning Ending Balance Increases Decreases Balance 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 9,047,262 381,898 - 9,429,160 Infrastructure and improvements 867,096 7,600 - 874,696 Equipment 2,564,574 270,625 (339,550) 2,495,649 Total Capital Assets Being Depreciated 12,478,932 660,123 (339,550) 12,799,505 Less Accumulated Depreciation For: Buildings and improvements (4,422,091) (309,221) - (4,731,312) Infrastructure and improvements (226,905) (46,260) - (273,165) Equipment (1,699,350) (132,069) 339,550 (1,491,869) Total Accumulated Depreciation (6,348,346) (487,550) 339,550 (6,496,346) Total Capital Assets Being Depreciated, Net 6,130,586 172,573 - 6,303,159 Business-type Activities Capital Assets, Net 10,530,086$ 172,573$ -$ 10,702,659$ Depreciation expense for 2020 was charged to functions of the Town as follows: Governmental Activities: General government 589,627$ Public safety 507,382 Public works and transportation 7,916,029 Culture and recreation 2,255,585 Total Depreciation Expense - Governmental Activities 11,268,623$ Business-type Activities: Dispatch services 132,069$ Housing 355,481 Total Depreciation - Business-type Activities 487,550$ 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, 2020, the Town had $74,694,208 of fully-depreciated assets. June 1, 2021 - Page 87 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D20 IV. Detailed Notes on all Funds (continued) 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, 2020, rent receivable accrued in the Timber Ridge Enterprise Fund was $969,671. No payments are due from Lion’s Ridge until 2025. F. Interfund Receivables, Payables, and Transfers At December 31, 2020, VRA owed the Capital Projects Fund $1,809,400 in connection with construction projects within the Lionshead district of the Town, including the construction of a roundabout on South Frontage Road near the Lionshead Parking Structure, the Red Sandstone Parking Structure, West Lionshead Circle Crosswalk, and repairs to the Lionshead Parking Structure. The following promissory notes payable from the Timber Ridge Enterprise Fund to the Town – which aggregate to $7,366,493 as of December 31, 2020 – are reflected as internal balances between the governmental activities and business-type activities categories on the Statement of Net Position:  Promissory notes with principal balances totaling $1.9 million, bearing interest at 1.5% per annum, and maturing in December 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 interest relating to the $1.9 million notes during 2020. $900,000 of the proceeds was not used for capital acquisitions and, therefore, is excluded from Timber Ridge’s calculation of net investment in capital assets. In January 2021, the balance of the $1.9 million notes, together with all accrued interest, was paid in full.  A promissory note with an original principal balance of $8 million, which bears interest at 1.5% per annum, with blended annual payments, and maturing in December 2033. Timber Ridge remitted $82,470 in interest to the Town during 2020 and, as of December 31, 2020, had accrued a total of $34,166 in interest payable to the Town relating to the $8 million note. June 1, 2021 - Page 88 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D21 IV. Detailed Notes on all Funds (continued) F. Interfund Receivables, Payables, and Transfers (continued) Debt service requirements for the $1.9 million and $8 million promissory notes are as follows: Principal Interest Total 2021 2,283,969$ 79,352$ 2,363,321$ 2022 389,728 73,315 463,043 2023 395,574 67,425 462,999 2024 401,508 61,447 462,955 2025 407,530 55,379 462,909 2026 - 2030 2,131,201 182,646 2,313,847 2031 - 2033 1,356,983 30,734 1,387,717 Totals 7,366,493$ 550,298$ 7,916,791$ 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. 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 2010B VRA 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. VRA receives 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 VRA, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged incremental property tax revenues. June 1, 2021 - Page 89 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D22 IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities – Governmental Activities (continued) 1. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B (continued) 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 VRA 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. During June 2020, the 2010B Bonds were refunded through the Refunding Loan, Series 2020. 2. Vail Reinvestment Authority Tax Increment Revenue Refunding Loan, Series 2020 VRA issued a $6,386,000 Tax Increment Revenue Refunding Loan, Series 2020 (the “Series 2020 Refunding Loan”), the proceeds of which were used to refund all outstanding 2010B Bonds. The Series 2020 Refunding Loan, which is secured by a pledge of VRA’s property tax revenues, is a special limited obligation of VRA and not the Town. The interest rate on the Series 2020 Refunding Loan is 1.19% per annum, and is payable June 1 and December 1 annually from December 1, 2020 through maturity on June 1, 2030. Principal payments are due annually, beginning in June 2021, through maturity in June 2030. The Series 2020 Refunding Loan is not subject to prepayment at the Town’s option. The Town realized a net present value savings of $1,115,124 on the refunding of the 2010B Bonds. 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 at December 31, 2020 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 $4,262,123 at December 31, 2020 has not been reflected in the Town’s financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I. Long-term Liabilities – Refunded In prior years, the Town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the Town until retired; however, they are not included for the purposes of calculating debt limits of the Town. The amount of debt considered defeased cannot be readily determined as of December 31, 2020. June 1, 2021 - Page 90 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D23 IV. Detailed Notes on all Funds (continued) J. Long-term Liabilities - Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2020 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Tax-Increment Bonds, Series 2010B 7,715,000$ -$ (7,715,000)$ -$ -$ Tax Increment Revenue Refunding Loan, Series 2020 - 6,386,000 - 6,386,000 618,000 Compensated absences 1,535,093 232,963 - 1,768,056 530,417 Total Governmental Activities Long-term Liabilities 9,250,093$ 6,618,963$ (7,715,000)$ 8,154,056$ 1,148,417$ Business-type Activities: Compensated absences 89,965$ 39,518$ -$ 129,483$ 38,245$ Total Business-type Activities Long-term Liabilities 89,965$ 39,518$ -$ 129,483$ 38,245$ Debt service requirements at December 31, 2020 were as follows: Principal Interest Total Governmental Activities: 2021 618,000$ 72,316$ 690,316$ 2022 612,000 64,998 676,998 2023 620,000 57,667 677,667 2024 626,000 50,254 676,254 2025 636,000 42,745 678,745 2026-2030 3,274,000 98,270 3,372,270 Total Governmental Activities 6,386,000$ 386,250$ 6,772,250$ 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. June 1, 2021 - Page 91 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D24 IV. Detailed Notes on all Funds (continued) K. Fund Balance Disclosures The Town classifies governmental fund balances as follows: Non-spendable – includes fund balance amounts inherently non-spendable since they represent inventories, prepaid items, and long-term portions of loans receivable. Spendable Fund Balance: Restricted – includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Committed – includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority, which is the Town Council. The Town’s original budget legislation begins with combining historical data, assessment of needs for the upcoming year and the Town’s platform to review, and/or make changes to each department’s budget. The budget is formally presented to the Town Council via an advertised public process for review, revisions and final approval by year-end. All subsequent budget requests made during the year, after Town Council approval, must be presented via a public process and again approved by Town Council. Assigned – includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. Fund balance may be assigned by Town Council or its management designees. Unassigned – includes residual positive fund balance within the General Fund, which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. The Town’s restricted amounts are to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents or contracts that prohibit this, such as grant agreements that require dollar for dollar spending. Additionally, the Town would first use committed, then assigned, and lastly unassigned amounts when expenditures are made. The Town has a minimum fund balance policy of 35% 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. June 1, 2021 - Page 92 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D25 V. Other Information (continued) A. Pension Plans (continued) In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long-term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100%. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100%. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2020 of $86,441,599 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 2020 covered payroll was $22,504,968 of which $19,698,128 was for permanent employees and $2,806,839 was for seasonal staff. Total 2020 payroll for all Town employees was $22,987,160. 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. June 1, 2021 - Page 93 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D26 V. Other Information (continued) B. Retirement Savings Plan – Deferred Compensation Plan – IRC 457 (continued) All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. The modified accrual basis of accounting is used for the 457 Plan. The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town’s administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. The total assets of the 457 Plan were $22,672,292 at December 31, 2020. The assets were invested in mutual funds, as previously described. Pursuant to the Town’s adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D. Risk Management The Town is exposed to various risks of loss related to workers’ compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. The Town offers health insurance to certain employees through the Town’s self-funded health plan with excess coverage underwritten by a commercial carrier. Liabilities for retained risk claims are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (“IBNR”). The following is a summary of the changes in the balances of the claims liability during 2020: Claims liability, beginning of year 502,160$ Current year claims (3,145,796) Claims payments 3,082,692 Claims liability, end of year 439,056$ June 1, 2021 - Page 94 of 225 Town of Vail, Colorado Notes to the Financial Statements December 31, 2020 (Continued) D27 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, 2020. 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, 2020. 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. G. Change in Accounting Principle During 2020, the Town implemented GASB Statement No. 84, Fiduciary Activities (“GASB 84”). The objective of GASSB 84 is to improve financial reporting for fiduciary activities by establishing criteria for identifying fiduciary activities of state and local governments. The focus of the criteria generally is on 1) whether a government controls the assets of the fiduciary activity and, 2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The presentation of the Town’s pension trust funds was not changed from prior years upon implementation of GASB 84 in 2020, as the Town continues to recognize the pension trust funds as fiduciary activities. H. Subsequent Event In February 2021, the Town entered into a Site and Improvement Lease and a Lease Purchase Agreement with Truist Bank (“”Truist”), a North Carolina Banking Corporation, to finance the construction of additions and renovations to the respect to property currently utilized as the Town’s Public Works facility (the “Site”). Under the agreements, the Town will be responsible for repaying a principal balance of $15,190,000 to Truist, together with interest at 1.76% per annum, beginning in 2021 and continuing to maturity in December 2035. June 1, 2021 - Page 95 of 225 REQUIRED SUPPLEMENTARY INFORMATION June 1, 2021 - Page 96 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: General sales taxes 17,685,000 15,300,000 15,300,000 - 16,790,000 Property and ownership taxes 5,900,000 5,900,000 5,941,710 41,710 5,369,376 Ski area lift ticket admissions tax 5,300,000 3,880,000 4,095,812 215,812 5,341,369 Franchise tax 1,127,500 1,127,500 1,084,277 (43,223) 1,161,503 Tobacco tax 65,000 465,000 531,913 66,913 62,336 Penalties and interest on delinquent taxes 47,940 47,940 56,646 8,706 40,036 Total - Taxes 30,125,440 26,720,440 27,010,358 289,918 28,764,620 Permits and Licenses: Construction fees 1,352,424 1,000,000 945,636 (54,364) 1,151,414 Contractors' licenses 50,000 50,000 95,559 45,559 55,144 Other permits and licenses 997,575 871,366 1,030,265 158,899 1,001,360 Total - Permits and Licenses 2,399,999 1,921,366 2,071,460 150,094 2,207,918 Intergovernmental: County sales tax 912,768 757,600 889,379 131,779 1,029,600 County road and bridge 720,120 700,000 788,409 88,409 709,513 Additional motor vehicle registration fees 26,000 26,000 27,356 1,356 27,746 Highway users tax 250,000 260,000 195,131 (64,869) 260,384 Other county sources 87,500 87,500 87,950 450 89,162 Other state sources 13,700 875,246 858,891 (16,355) 116,887 Federal sources - 2,964,177 2,484,110 (480,067) 2,241 Total - Intergovernmental 2,010,088 5,670,523 5,331,226 (339,297) 2,235,533 Charges for Services: Management fees - Vail Local Marketing District 145,000 130,500 130,500 - 145,000 Internal service charge 537,612 666,712 761,153 94,441 584,638 Out of district fire response 40,800 68,000 62,709 (5,291) 69,869 Alarm monitoring fees - - - - 15,920 Parking 6,360,000 5,100,000 4,891,998 (208,002) 6,720,873 Fines and forfeitures 250,475 250,475 342,285 91,810 211,089 Rents 1,093,180 875,260 787,907 (87,353) 1,139,700 Other charges, services, and sales 302,506 233,375 258,412 25,037 329,231 Total - Charges for Services 8,729,573 7,324,322 7,234,964 (89,358) 9,216,320 Investment Income: Earnings on investments 500,000 200,000 309,551 109,551 866,059 Miscellaneous: Miscellaneous 251,000 194,040 247,829 53,789 377,097 Total Revenues 44,016,100 42,030,691 42,205,388 174,697 43,667,547 (Continuing) 2020 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, 2020 With Comparative Actual Amounts For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. E1 June 1, 2021 - Page 97 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Expenditures: General Government: Town officials 1,812,110 1,572,337 1,391,724 180,613 1,634,077 Administrative 5,244,266 5,054,951 4,596,194 458,757 4,795,163 Community development 3,176,068 2,735,518 2,193,058 542,460 2,344,854 Total - General Government 10,232,444 9,362,806 8,180,976 1,181,830 8,774,094 Public Safety: Police department 6,469,937 6,522,362 6,623,230 (100,868) 6,513,205 Fire department 5,083,596 5,407,013 4,942,761 464,252 4,859,806 Total - Public Safety 11,553,533 11,929,375 11,565,991 363,384 11,373,011 Public Works and Transportation: Highways and streets 5,632,108 5,274,262 5,210,865 63,397 5,039,692 Transportation 5,653,817 5,233,035 5,051,201 181,834 5,553,226 Parking operations 1,762,872 1,493,042 1,314,192 178,850 1,619,527 Facility maintenance 4,035,130 3,940,030 4,005,743 (65,713) 3,931,476 Total - Public Works and Transportation 17,083,927 15,940,369 15,582,001 358,368 16,143,921 Culture and Recreation: Special recreation facilities 318,900 255,686 227,613 28,073 310,274 Library 945,742 958,328 957,227 1,101 1,052,117 Total - Culture and Recreation 1,264,642 1,214,014 1,184,840 29,174 1,362,391 Economic Development: Contributions, marketing, and special events 1,137,973 2,428,501 1,799,673 628,828 1,023,836 Total - Economic Development 1,137,973 2,428,501 1,799,673 628,828 1,023,836 Total Expenditures 41,272,519 40,875,065 38,313,481 2,561,584 38,677,253 Excess (Deficiency) of Revenues Over Expenditures 2,743,581 1,155,626 3,891,907 2,736,281 4,990,294 Other Financing Sources (Uses): Sale of assets - - 7,211 7,211 - Transfers out (2,866,211) (2,156,846) (1,658,026) 498,820 (2,571,769) Total Other Financing Sources (Uses)(2,866,211) (2,156,846) (1,650,815) 506,031 (2,571,769) Net Change in Fund Balance (122,630) (1,001,220) 2,241,092 3,242,312 2,418,525 Fund Balance - January 1 32,144,412 36,306,665 36,306,665 - 33,888,140 Fund Balance - December 31 32,021,782 35,305,445 38,547,757 3,242,312 36,306,665 (Continued) 2020 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, 2020 With Comparative Actual Amounts For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. E2 June 1, 2021 - Page 98 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Permits and Licenses: Business licenses 325,000 325,000 343,902 18,902 341,149 Investment Income: Interest on investments 3,000 3,000 1,997 (1,003) 1,392 Total Revenues 328,000 328,000 345,899 17,899 342,541 Expenditures: Economic Development: Special events 2,297,563 1,841,292 1,505,568 335,724 1,890,406 Commission on Special Events 893,648 640,554 476,900 163,654 894,272 Administration fee 16,250 16,250 16,320 (70) 17,057 Total Expenditures 3,207,461 2,498,096 1,998,788 499,308 2,801,735 Excess (Deficiency) of Revenues Over Expenditures (2,879,461) (2,170,096) (1,652,889) 517,207 (2,459,194) Other Financing Sources (Uses): Transfers in 2,866,211 2,156,846 1,653,178 (503,668) 2,542,788 Net Change in Fund Balance (13,250) (13,250) 289 13,539 83,594 Fund Balance - January 1 274,286 386,837 386,835 (2) 303,241 Fund Balance - December 31 261,036 373,587 387,124 13,537 386,835 2020 Town of Vail, Colorado Vail Marketing Fund - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2020 With Comparative Actual Amounts For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. E3 June 1, 2021 - Page 99 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Lodging tax 3,590,000 2,599,605 3,263,261 663,656 3,711,738 Investment Income: Interest on investments 2,000 2,000 272 (1,728) 2,631 Miscellaneous: Miscellaneous - - 3,174 3,174 - Total Revenues 3,592,000 2,601,605 3,266,707 665,102 3,714,369 Expenditures: Economic Development: Destination 1,219,512 348,547 645,907 (297,360) 1,391,003 Front Range 223,000 534,430 180,122 354,308 279,618 Groups and meetings 680,738 520,636 504,077 16,559 597,075 Marketing 823,250 764,563 753,879 10,684 828,675 Special events 25,000 25,000 25,000 - 25,000 Purchased services 528,500 430,824 429,021 1,803 513,343 Total Expenditures 3,500,000 2,624,000 2,538,006 85,994 3,634,714 Net Change in Fund Balance 92,000 (22,395) 728,701 751,096 79,655 Fund Balance - January 1 962,453 1,350,108 1,350,108 - 1,270,453 Fund Balance - December 31 1,054,453 1,327,713 2,078,809 751,096 1,350,108 2020 With Comparative Actual Amounts For the Year Ended December 31, 2019 Town of Vail, Colorado Vail Local Marketing District - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2020 The accompanying notes are an integral part of these financial statements. E4 June 1, 2021 - Page 100 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Property tax 6,067,000 6,768,800 6,851,562 82,762 5,825,058 Investment Income: Interest on investments 2,492 17,492 21,328 3,836 3,793 Interest Subsidy: Interest subsidy (Build America Bonds) 165,082 82,541 100,098 17,557 164,876 Total Revenues 6,234,574 6,868,833 6,972,988 104,155 5,993,727 Expenditures: Economic Development: Administration 110,000 121,600 121,842 (242) 105,654 Fiscal agent fees 2,800 2,800 1,720 1,080 1,470 Treasurer's fees 182,010 203,064 205,547 (2,483) 174,754 Professional fees 10,000 10,000 1,353 8,647 1,445 Vail Square Metro District 549,990 668,136 736,681 (68,545) 526,106 Total - Economic Development 854,800 1,005,600 1,067,143 (61,543) 809,429 Debt Service: Principal 575,000 7,715,000 7,715,000 - 555,000 Interest 471,662 334,243 327,914 6,329 501,432 Total - Debt Service 1,046,662 8,049,243 8,042,914 6,329 1,056,432 Total Expenditures 1,901,462 9,054,843 9,110,057 (55,214) 1,865,861 Excess (Deficiency) of Revenues Over Expenditures 4,333,112 (2,186,010) (2,137,069) 48,941 4,127,866 Other Financing Sources (Uses): Debt proceeds - 6,386,000 6,386,000 - - Issuance costs - (107,159) (105,360) 1,799 - Transfers out (2,550,000) (1,905,291) (1,809,400) 95,891 (3,804,281) Total Other Financing Sources (Uses)(2,550,000) 4,373,550 4,471,240 97,690 (3,804,281) Net Change in Fund Balance 1,783,112 2,187,540 2,334,171 146,631 323,585 Fund Balance - January 1 2,565,203 2,582,892 2,582,892 - 2,259,307 Fund Balance - December 31 4,348,315 4,770,432 4,917,063 146,631 2,582,892 With Comparative Actual Amounts For the Year Ended December 31, 2019 2020 Town of Vail, Colorado Vail Reinvestment Authority - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2020 The accompanying notes are an integral part of these financial statements. E5 June 1, 2021 - Page 101 of 225 SUPPLEMENTARY INFORMATION June 1, 2021 - Page 102 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax 10,839,000 7,200,000 9,911,184 2,711,184 12,719,336 Construction use tax 2,220,000 1,930,000 2,078,577 148,577 2,467,928 Franchise tax - 190,000 200,171 10,171 77,237 Total - Taxes 13,059,000 9,320,000 12,189,932 2,869,932 15,264,501 Permits and Licenses: Construction fees - 126,053 76,053 (50,000) 461,556 Intergovernmental: County revenues - - - - 105,829 State grants 1,617,287 1,967,287 - (1,967,287) 33,000 Federal grants 700,000 - 139,522 139,522 894,898 Total - Intergovernmental 2,317,287 1,967,287 139,522 (1,827,765) 1,033,727 Charges for Services: Leases - Vail Commons 164,067 164,067 163,909 (158) 163,909 Total - Charges for Services 164,067 164,067 163,909 (158) 163,909 Investment Income: Interest on investments 829,812 829,812 401,257 (428,555) 970,269 Miscellaneous: Project reimbursements/shared costs - 79,676 510,152 430,476 322,631 Miscellaneous - - 291 291 4,582 Total - Miscellaneous - 79,676 510,443 430,767 327,213 Total Revenues 16,370,166 12,486,895 13,481,116 994,221 18,221,175 Expenditures: Public Works: Capital lease principal - - - - 743,692 Interest - - - - 1,236 Capital projects and acquisition 29,396,754 34,378,781 12,669,368 21,709,413 19,574,164 Total Expenditures 29,396,754 34,378,781 12,669,368 21,709,413 20,319,092 Excess (Deficiency) of Revenues Over Expenditures (13,026,588) (21,891,886) 811,748 22,703,634 (2,097,917) Other Financing Sources (Uses): Sale of assets - 1,394,434 1,126,162 (268,272) 1,547,000 Transfers in 2,550,000 1,905,291 1,809,400 (95,891) 3,804,281 Transfers (out)- (3,000) (3,000) - - Total Other Financing Sources (Uses)2,550,000 3,296,725 2,932,562 (364,163) 5,351,281 Net Change in Fund Balance (10,476,588) (18,595,161) 3,744,310 22,339,471 3,253,364 Fund Balance - January 1 16,414,884 42,354,392 50,099,177 7,744,785 46,845,813 Fund Balance - December 31 5,938,296 23,759,231 53,843,487 30,084,256 50,099,177 With Comparative Actual Amounts For the Year Ended December 31, 2019 2020 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, 2020 The accompanying notes are an integral part of these financial statements. F1 June 1, 2021 - Page 103 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Real estate transfer tax 6,300,000 8,650,000 10,448,526 1,798,526 7,224,668 Intergovernmental Revenue: Lottery revenue 20,000 20,000 28,167 8,167 31,476 Other county revenue - 480,000 - (480,000) 24,377 Other state revenue - - 114,108 114,108 98,978 Other Federal grants - - 72,941 72,941 - Total - Intergovernmental Revenue 20,000 500,000 215,216 (284,784) 154,831 Charges for Services: Recreation amenities fee 10,000 10,000 11,731 1,731 76,061 Land lease to Vail Recreation District 168,317 168,317 169,506 1,189 165,000 Total - Charges for Services 178,317 178,317 181,237 2,920 241,061 Investment Income: Interest on investments 68,849 68,849 111,326 42,477 298,861 Miscellaneous: Project reimbursements - 22,000 59,484 37,484 77,684 Donations - 49,608 13,750 (35,858) 203,332 Other 32,000 32,000 36,331 4,331 27,790 Total - Miscellaneous 32,000 103,608 109,565 5,957 308,806 Total Revenues 6,599,166 9,500,774 11,065,870 1,565,096 8,228,227 Expenditures: Culture and Recreation: Project management 315,000 432,500 521,469 (88,969) 361,233 Park maintenance 1,816,014 1,653,477 1,506,997 146,480 1,617,376 Environmental sustainability 982,236 993,984 734,148 259,836 676,293 Art in public places 130,771 130,771 114,885 15,886 118,657 Total - Culture and Recreation 3,244,021 3,210,732 2,877,499 333,233 2,773,559 Public Works: Capital projects 4,721,906 7,055,863 2,298,893 4,756,970 3,486,942 Public Safety Fire suppression 298,733 291,786 223,419 68,367 283,380 Total Expenditures 8,264,660 10,558,381 5,399,811 5,158,570 6,543,881 Excess (Deficiency) of Revenues Over Expenditures (1,665,494) (1,057,607) 5,666,059 6,723,666 1,684,346 Other Financing Sources (Uses): Transfers in - 3,000 3,000 - 24,114 Net Change in Fund Balance (1,665,494) (1,054,607) 5,669,059 6,723,666 1,708,460 Fund Balance - January 1 3,980,991 14,684,013 14,684,013 - 12,975,553 Fund Balance - December 31 2,315,497 13,629,406 20,353,072 6,723,666 14,684,013 With Comparative Actual Amounts For the Year Ended December 31, 2019 2020 Town of Vail, Colorado Real Estate Transfer Tax Fund - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2020 The accompanying notes are an integral part of these financial statements. F2 June 1, 2021 - Page 104 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Rents 1,595,250 1,536,828 1,587,080 50,252 1,593,491 Ground lease - - 155,149 155,149 155,149 Other 19,034 19,034 13,322 (5,712) 25,398 Total Operating Revenues 1,614,284 1,555,862 1,755,551 199,689 1,774,038 Operating Expenses: Operating expenses 529,740 529,740 501,688 28,052 490,895 Capital outlay 321,192 797,423 389,498 407,925 14,002 Total Operating Expenses 850,932 1,327,163 891,186 435,977 504,897 Operating Income (Loss)763,352 228,699 864,365 635,666 1,269,141 Non-operating Revenues (Expenses): Interest on investments 12,000 12,000 4,664 (7,336) 19,790 Interest expense (110,969) (110,969) (110,971) (2) (116,638) Loan principal repayment - Capital Projects Fund (378,294) (378,294) (378,294) - (372,704) Total Non-operating Revenue (Expenses)(477,263) (477,263) (484,601) (7,338) (469,552) Change in Net Position - Budget Basis 286,089 (248,564) 379,764 628,328 799,589 Reconciliation to GAAP Basis: Adjustments: Loan principal repayment - Capital Projects Fund 378,294 372,704 Capitalized assets 389,498 14,002 Depreciation (355,481) (347,114) Total Adjustments 412,311 39,592 Change in Net Position - GAAP Basis 792,075 839,181 2020 Town of Vail, Colorado Timber Ridge Fund - Enterprise 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, 2020 With Comparative Actual Amounts For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. F3 June 1, 2021 - Page 105 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Dispatch service fee 661,194 661,194 661,194 - 669,590 Dispatching contracts 1,329,952 1,329,952 1,329,952 - 1,342,632 Total Operating Revenues 1,991,146 1,991,146 1,991,146 - 2,012,222 Operating Expenses: Public Safety: Salaries and benefits 2,248,016 2,222,962 2,114,688 108,274 2,070,611 Operating expenses 497,010 517,762 436,288 81,474 450,156 Capital outlay - 562,948 270,626 292,322 - Total Operating Expenses 2,745,026 3,303,672 2,821,602 482,070 2,520,767 Operating (Loss) - Budget Basis (753,880) (1,312,526) (830,456) 482,070 (508,545) Non-operating Revenues: Other State revenues - 37,059 32,492 (4,567) - Operating grant - E-911 Board 845,030 845,030 845,030 - 816,452 Other operating grants - - 10,676 10,676 - Earnings on investments 10,000 10,000 11,694 1,694 32,266 Total Non-operating Revenues 855,030 892,089 899,892 7,803 848,718 Income (Loss) Before Transfers 101,150 (420,437) 69,436 489,873 340,173 Transfers in - 4,848 4,848 - 15,750 Change in Net Position - Budget Basis 101,150 (415,589) 74,284 489,873 355,923 Reconciliation to GAAP Basis: Adjustments: Change in accrued compensated absences (39,519) (16,006) Capitalized assets 270,626 - Depreciation (132,069) (127,778) Total Adjustments 99,038 (143,784) Change in Net Position - GAAP Basis 173,322 212,139 With Comparative Actual Amounts For the Year Ended December 31, 2019 2020 Town of Vail, Colorado Dispatch Services Fund - Enterprise 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, 2020 The accompanying notes are an integral part of these financial statements. F4 June 1, 2021 - Page 106 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Operating charges 2,655,128 2,321,683 2,331,196 9,513 2,618,757 Replacement charges 880,256 943,609 869,940 (73,669) 733,837 Total - Charges and Fees 3,535,384 3,265,292 3,201,136 (64,156) 3,352,594 Insurance reimbursements 10,000 10,000 1,430 (8,570) 37,993 Other - - 13,277 13,277 16,396 Total Operating Revenues 3,545,384 3,275,292 3,215,843 (59,449) 3,406,983 Operating Expenses: Public Works: Vehicle maintenance and fuel 2,792,854 2,577,426 2,220,289 357,137 2,555,247 Capital outlay 1,002,765 1,250,357 1,091,461 158,896 783,193 Total Operating Expenses 3,795,619 3,827,783 3,311,750 516,033 3,338,440 Operating Income (Loss) - Budget Basis (250,235) (552,491) (95,907) 456,584 68,543 Non-operating Revenues: Intergovernmental revenues - - 29,492 29,492 - Earnings on investments 7,900 7,900 15,736 7,836 46,230 Proceeds from sale of assets 154,563 154,563 158,571 4,008 100,466 Total Non-operating Revenues:162,463 162,463 203,799 41,336 146,696 Transfers in - - - - 4,867 Change in Net Position - Budget Basis (87,772) (390,028) 107,892 497,920 220,106 Reconciliation to GAAP Basis: Adjustments: Contribution from Capital Projects Fund 72,858 105,611 Change in accrued compensated absences (51) (6,249) Capitalized assets 1,091,461 783,193 Net book value of disposed assets (527) (20,982) Depreciation (798,321) (794,078) Total Adjustments 365,420 67,495 Change in Net Position - GAAP Basis 473,312 287,601 With Comparative Actual Amounts For the Year Ended December 31, 2019 2020 Town of Vail, Colorado Heavy Equipment Fund - Internal Service 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, 2020 The accompanying notes are an integral part of these financial statements. F5 June 1, 2021 - Page 107 of 225 2019 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Insurance premiums 4,670,000 4,670,000 3,800,000 (870,000) 4,400,000 Insurance premiums - Employee contributions 829,500 860,000 858,159 (1,841) 882,844 Total Operating Revenues 5,499,500 5,530,000 4,658,159 (871,841) 5,282,844 Operating Expenses: General Government: Health claims 4,408,760 4,408,760 3,082,692 1,326,068 3,567,754 Premiums 1,152,909 1,321,909 1,331,491 (9,582) 1,130,291 Administrative fees 40,500 40,500 42,937 (2,437) 43,649 Total Operating Expenses 5,602,169 5,771,169 4,457,120 1,314,049 4,741,694 Operating Income (Loss)(102,669) (241,169) 201,039 442,208 541,150 Non-operating Revenues: Earnings on investments 30,000 30,000 35,025 5,025 93,295 Change in Net Position (72,669) (211,169) 236,064 447,233 634,445 With Comparative Actual Amounts For the Year Ended December 31, 2019 2020 Town of Vail, Colorado Health Insurance Fund - Internal Service Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (GAAP Basis) and Actual For the Year Ended December 31, 2020 The accompanying notes are an integral part of these financial statements. F6 June 1, 2021 - Page 108 of 225 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments 2,289,861 4,650,046 6,939,907 Accounts receivable, net of allowance for uncollectibles 74,077 6,065 80,142 Inventory 343,504 - 343,504 Prepaid expenses - 500 500 Total - Current Assets 2,707,442 4,656,611 7,364,053 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation 5,539,435 - 5,539,435 Total Assets 8,246,877 4,656,611 12,903,488 Liabilities: Current Liabilities:. Accounts payable 139,628 439,619 579,247 Accrued salaries and wages 24,723 - 24,723 Current portion of compensated absences 15,704 - 15,704 Total - Current Liabilities 180,055 439,619 619,674 Non-current Liabilities: Compensated absences, net of current portion 36,644 - 36,644 Total Liabilities 216,699 439,619 656,318 Net Position: Net investment in capital assets 5,539,435 - 5,539,435 Unrestricted 2,490,743 4,216,992 6,707,735 Total Net Position 8,030,178 4,216,992 12,247,170 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Position December 31, 2020 The accompanying notes are an integral part of these financial statements. F7 June 1, 2021 - Page 109 of 225 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal 3,201,136 3,800,000 7,001,136 Charges for services - External - 858,159 858,159 Insurance reimbursements 1,430 - 1,430 Other 13,277 - 13,277 Total Operating Revenues 3,215,843 4,658,159 7,874,002 Operating Expenses: Operations 2,220,340 42,937 2,263,277 Health claims and premiums - 4,414,183 4,414,183 Depreciation 798,321 - 798,321 Total Operating Expenses 3,018,661 4,457,120 7,475,781 Operating Income (Loss)197,182 201,039 398,221 Non-operating Revenues (Expenses): Intergovernmental revenues 29,492 - 29,492 Gain (loss) on disposal of assets 158,044 - 158,044 Investment income 15,736 35,025 50,761 Total Non-operating Revenues (Expenses) 203,272 35,025 238,297 Income (Loss) Before Transfers and Capital Contributions 400,454 236,064 636,518 Capital contributions, net 72,858 - 72,858 Change in Net Position 473,312 236,064 709,376 Net Position - January 1 7,556,866 3,980,928 11,537,794 Net Position - December 31 8,030,178 4,216,992 12,247,170 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2020 The accompanying notes are an integral part of these financial statements. F8 June 1, 2021 - Page 110 of 225 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 3,201,136 3,800,000 7,001,136 Other cash receipts (36,563) 857,179 820,616 Cash paid for goods and services (1,144,292) (4,519,769) (5,664,061) Cash paid to employees (1,074,635) - (1,074,635) Net Cash Provided (Used) by Operating Activities 945,646 137,410 1,083,056 Cash Flows From Non-Capital Financing Activities: Cash received from operating grants 29,492 - 29,492 Transfer from (to) other funds - - - Net Cash Provided (Used) by Non-Capital Financing Activities 29,492 - 29,492 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 158,570 - 158,570 Acquisition and construction of capital assets for other funds - - - Acquisition and construction of capital assets (1,028,360) - (1,028,360) Net Cash Provided (Used) by Capital and Related Financing Activities (869,790) - (869,790) Cash Flows From Investing Activities: Interest on investments 15,736 35,025 50,761 Net Cash Provided (Used) by Investing Activities 15,736 35,025 50,761 Net Change in Cash and Cash Equivalents 121,084 172,435 293,519 Cash and Cash Equivalents - Beginning 2,168,777 4,477,611 6,646,388 Cash and Cash Equivalents - Ending 2,289,861 4,650,046 6,939,907 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)197,182 201,039 398,221 Adjustments: Depreciation 798,321 - 798,321 (Increase) decrease in accounts receivable (51,270) (980) (52,250) (Increase) decrease in inventory (52,818) - (52,818) Increase (decrease) in accounts payable 49,739 (62,649) (12,910) Increase (decrease) in accrued wages and benefits 4,492 - 4,492 Total Adjustments 748,464 (63,629) 684,835 Net Cash Provided (Used) by Operating Activities 945,646 137,410 1,083,056 Non-cash Investing, Capital and Financing Activities: Assets contributed by Capital Projects Fund 72,858 - 72,858 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 The accompanying notes are an integral part of these financial statements. F9 June 1, 2021 - Page 111 of 225 2019 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CBI021 Donovan Park Pavilion 1,492,000 38,754 1,453,246 - CBI026 Welcome Center Capital Maintenance 94,704 - 94,704 43,297 CBI027 Public Works Remodel 2,403,325 834,066 1,569,259 215,081 CEP004 Replace Buses 6,445,706 2,989,884 3,455,822 3,382 CEP005 Hardware Purchases 187,823 78,893 108,930 101,204 CEP006 Radio Replacement - - - 18,759 CEP008 Parking Entry System 227,161 102,013 125,148 60,890 CEP010 Network Upgrades 220,256 178,548 41,708 19,595 CEP011 Document Imaging 50,000 30,299 19,701 28,487 CEP018 Web and E-commerce 136,500 100,534 35,966 13,511 CEP019 Computer-Aided Dispatch (CAD/RMS)113,000 106,711 6,289 63,261 CEP022 Audio Visual 140,000 41,022 98,978 44,553 CEP026 Fire Equipment 18,800 15,043 3,757 74,217 CEP030 Vehicle expansion 70,700 72,858 (2,158) 105,611 CEP031 Software Licensing 591,401 533,130 58,271 274,592 CEP033 Data Centers / Computer Rooms 1,248,246 1,169,294 78,952 726,400 CEP036 Business Systems 155,000 55,593 99,407 61,825 CEP038 Police Equipment 58,831 51,714 7,117 74,703 CEP042 Bus Camera System 15,000 14,747 253 15,060 CEP047 Event Equipment - - - 77,643 CEP048 Electric Bus Station/Infrastructure 1,740,936 473,657 1,267,279 - CEP049 Bus Transportation Mgmt. System 700,000 - 700,000 - CHF001 Buy-Down Housing 382,513 - 382,513 - CHF002 Solar Vail - - - 4,030,000 CHF003 Vail InDEED 6,692,159 1,538,974 5,153,185 3,137,808 CHF004 Employee Housing 35,125 513 34,612 326,875 CMP007 Transportation Master Plan 30,000 - 30,000 - CMT003 Bus Shelter Replacement Program 230,000 279 229,721 237 CMT004 Capital Street Maintenance 1,345,000 1,031,822 313,178 692,573 CMT005 Facility Capital 1,414,596 1,014,600 399,996 418,351 CMT007 Parking Structure Maintenance 797,000 636,246 160,754 1,044,377 CMT009 Energy Enhancements 223,847 - 223,847 - CMT010 Underground Utilities 496,670 481,211 15,459 200,005 CMT011 Vail Village Inn Homeowners Roof Assessment - - - 27,269 CMT016 Public Works Wash Down - - - 59,093 CMT017 Slifer Plaza Fountain and Storm Sewer 156,593 83,176 73,417 1,327,236 CMT018 Public Works Shop Building Maintenance 300,000 - 300,000 - CMT020 Liftside to Glen Lyon Underground Powerline - - - 50,000 CMT021 Rockwall Mitigation 42,569 1,889 40,680 357,432 CMT022 Seibert Fountain 358,000 64,011 293,989 42,000 CMT023 Snowmelt Boilers 500,000 - 500,000 - COT002 Street Light Improvement Program 144,945 576 144,369 5,355 COT004 Fiber-Optics in Buildings 150,000 52,785 97,215 77,979 COT015 Red Sandstone Parking Garage 1,308,906 142,360 1,166,546 1,474,162 COT021 I-70 Fiber Optics 94,800 93,616 1,184 - COT024 West Forest Road Bridge Repair - - - 293,063 COT025 Kinnickinnick (West) Bridge Repair - - - 328,842 COT027 Children's Garden of Learning Boiler Replacement 52,500 6,054 46,446 - COT028 Council Contribution - Vail Valley Foundation - - - 55,000 COT030 Mill Creek Heated Sidewalk 115,832 115,832 - 24,420 COT031 Civic Area Redevelopment 1,000,000 - 1,000,000 - COT032 Children's Garden of Learning Relocation 335,000 57,009 277,991 - CSC016 Guest Services Enhancements 36,120 10,639 25,481 189,780 CSC017 Pedestrian Safety Enhancements 1,471,769 63,977 1,407,792 7,347 CSC018 East Meadow Drive Snowmelt - - - 558,021 CSC020 Vail Trail Sidewalk Connection - - - 93,475 CSR007 Neighborhood Road Reconstruction 321,840 278,316 43,524 78,160 CSR008 Neighborhood Bridges 48,186 24,323 23,863 1,904,355 CSR009 Frontage Road Enhancements VVMC 80,131 34,718 45,413 40,524 CSR010 West Vail Roundabout Repair - - - 128,810 VRA010 I-70 Underpass - - - 465,507 VRA017 Lionshead Express Bus Stop Improvements - - - 10,008 VRA018 Lionshead Parking Structure Landscape Renovations 30,291 - 30,291 - VRA021 West Lionshead Circle Crosswalk 75,000 49,682 25,318 47,394 Total 34,378,781 12,669,368 21,709,413 19,574,164 2020 Town of Vail, Colorado Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2020 With Comparative Actual Amounts For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. F10 June 1, 2021 - Page 112 of 225 2019 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CCF001 Golf Clubhouse Redevelopment 33,824 9,015 24,809 19,111 CCF002 Ford Park Fields 54,636 - 54,636 596,159 RFP005 Alpine Gardens Pledge 71,094 71,094 - 69,700 RFP019 Ford Park Landscape Enhancement 75,000 - 75,000 66,111 RMG012 Gore Creek Signage 152,450 1,620 150,830 - RMT001 Recreation Path Maintenance 140,000 65,283 74,717 79,639 RMT002 Tree Maintenance 65,000 54,112 10,888 64,739 RMT005 Street Furniture - Streetscape 167,935 45,935 122,000 64,865 RMT006 Eagle River Watershed Programs 40,000 35,000 5,000 42,000 RMT009 Park/Playground Capital Maintenance 175,108 77,226 97,882 84,892 RMT016 Ford Park / Tennis Center Improvements 163,487 22,424 141,063 - RMT018 Dobson Ice Arena 161,023 52,037 108,986 50,420 RMT019 Gymnastics Center 258,608 18,565 240,043 1,392 RMT021 Golf Course Clubhouse and Other - - - 39,093 RMT022 Recreation Enhancement Account (VRD)541,665 - 541,665 - RMT024 Athletic Fields 6,000 - 6,000 - RMT025 Nature Center 383,522 - 383,522 50,428 RMT027 Golf Course - Other Improvements 722,509 348,191 374,318 459,919 RMT028 Dowd Junction Repairs 701,437 845 700,592 47,196 RMT030 East Vail Interchange Improvements 290,284 36,466 253,818 342,270 RMT033 North Bike Path Reconstruction 233,380 7,135 226,245 1,620 RMT035 Nature Center Capital Maintenance 145,292 - 145,292 - RMT036 Recreation Facility Capital Maintenance 25,000 13,709 11,291 - RFA001 Property Acquisition - - - 14,860 RPI001 Playground Safety Improvements - - - 1,443 RPI007 Streamtract Education 50,000 28,946 21,054 39,551 RPI008 East Vail Water Quality TAPS - - - 24,943 RPI010 Water Quality Infrastructure 250,000 245,498 4,502 265,053 RPI011 Streambank Restoration 650,782 223,255 427,527 364,004 RPI012 Private Streambank 31,800 20,925 10,875 8,711 RPI013 Stephen's Park Improvements 453,352 420,130 33,222 7,695 RPI014 Covered Bridge Rehabilitation 112,022 1,016 111,006 4,913 RPI015 Turf Grass Reduction - - - 35,364 RPI016 Sunbird Park Fountain Repairs 123,000 120,000 3,000 - RPT022 Adopt-a-Trail 5,100 5,100 - 5,000 RPT023 Gore Valley Trail Reconstruction 25,000 - 25,000 - RPT024 Gore Valley Trail Realignment 267,182 142,754 124,428 19,679 RPT025 Vail Valley Drive Path Extension 100,000 14,682 85,318 49,220 RPT026 Gore Valley Trail Bridge Replacement 10,000 2,762 7,238 75,694 RRT001 Public Art 60,000 22,070 37,930 59,775 RRT006 Public Art - W interfest 56,094 32,970 23,124 43,991 RRT007 Public Art - Pete Seibert Memorial 19,600 2,450 17,150 300,000 RRT008 Nature Center Operations 90,000 81,599 8,401 75,036 RRT009 Public Art- Art Space 37,544 1,763 35,781 12,456 RSS006 Vail Transit Center Landscape 107,133 74,316 32,817 - Total 7,055,863 2,298,893 4,756,970 3,486,942 2020 Town of Vail, Colorado Real Estate Transfer Tax Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2020 With Comparative Actual Amounts For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. F11 June 1, 2021 - Page 113 of 225 LOCAL HIGHWAY FINANCE REPORT June 1, 2021 - Page 114 of 225 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 2020 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)564,201 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:1,862,122 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 301,764 2. General fund appropriations 5,105,624 b. Snow and ice removal 1,631,083 3. Other local imposts (from page 2)1,098,364 c. Other 4. Miscellaneous local receipts (from page 2)- d. Total (a. through c.)1,932,847 5. Transfers from toll facilities 4. General administration & miscellaneous 503,820 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 1,619,917 a. Bonds - Original Issues 6. Total (1 through 5) 6,482,907 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) 6,203,988 b. Redemption B. Private Contributions 39,885 c. Total (a. + b.) - C. Receipts from State government 2. Notes: (from page 2) 239,034 a. Interest D. Receipts from Federal Government b. Redemption (from page 2)- c. Total (a. + b.)- E. Total receipts (A.7 + B + C + D)6,482,907 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)6,482,907 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 - 6,482,907 6,482,907 - - Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 ITEM ITEM (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE AND STREET PURPOSES 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 F12 June 1, 2021 - Page 115 of 225 STATE: Colorado YEAR ENDING (mm/yy): December 2020 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 1,098,364 g. Other Misc. Receipts 6. Total (1. through 5.) 1,098,364 h. Other c. Total (a. + b.)1,098,364 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 195,131 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 27,356 d. Federal Transit Admin d. Other (Specify)16,547 e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)43,903 g. Total (a. through f.)- 4. Total (1. + 2. + 3.f)239,034 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 179,860 179,860 c. Construction: (1). New Facilities - (2). Capacity Improvements - (3). System Preservation 384,341 384,341 (4). System Enhancement & Operation - (5). Total Construction (1) + (2) + (3) + (4) - 384,341 384,341 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) - 564,201 564,201 (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 F13 June 1, 2021 - Page 116 of 225 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE June 1, 2021 - Page 117 of 225 2014 2015 2018 2019 2020 Pledged Revenues 3,673,030 4,221,743 5,124,621 5,467,621 6,236,307 Valuation Valuation Total Assessed Percent Allocable Allocable Levy Year Collection Year Valuation Change to Base to Increment 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 2018 2019 253,332,420 17.0% 134,268,000 119,064,420 2019 2020 252,718,220 -0.2% 134,124,120 118,594,100 Tax Areas 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 202 51.1300 51.6980 51.951 50.919 50.751 203 49.7500 50.3960 50.648 49.726 49.542 204 61.4300 60.8500 60.025 56.576 56.436 206 51.1300 51.6980 51.951 50.919 50.751 207 86.1300 86.6980 86.951 85.919 85.751 208 73.0100 73.5730 73.826 72.794 72.626 216 - - - - - 225 - - - - - Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables I - III December 31, 2020 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 1, 2021 - Page 118 of 225 2020 Preliminary Percentage of Assessed Total Assessed Taxpayer Name Valuation Valuation Diamondrock LLC 42,688,980 16.9% Arrrabelle at Vail Square LLC 28,646,250 11.3% Ritz-Carlton Development Co. Inc.10,299,710 4.1% Lion Vail LLC 8,389,670 3.3% Vail Corp 5,489,360 2.2% Lazier Lionshead LLC 3,262,010 1.3% A Belle Vail Co LLC 3,106,350 1.2% Vail Marriott Resort & Spa 2,502,510 1.0% Blue Ice 21 LLC 2,347,920 0.9% SOHO Development LLC 2,172,880 0.9% Landmark Commercial Dev. Co 1,940,440 0.8% Total 252,718,220 Total Percentage of Assessed Total Assessed Class Valuation Valuation Residential 147,029,960 58% Commercial 103,928,090 41% Vacant 1,211,840 0% State assessed 548,330 0% Total 252,718,220 100% Largest Taxpayers in the Authority TABLE V 2020 Preliminary Assessed Valuation of Classes of Property in the Authority Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables IV and V December 31, 2020 TABLE IV G2 June 1, 2021 - Page 119 of 225 2016 2017 2018 2019 2020 Revenues: Other: Property tax 3,959,506 4,514,083 5,475,660 5,825,058 6,851,562 Interest on investments 2,062 3,273 4,045 3,793 21,328 Interest subsidy (Build America Bonds)168,246 168,427 169,059 164,876 100,098 Total Revenues 4,129,814 4,685,783 5,648,764 5,993,727 6,972,988 Expenditures: Economic Development: Administration 69,772 80,715 98,604 105,654 121,842 Fiscal agent fees 2,420 2,420 2,420 1,470 1,720 Treasurer's fees 118,789 135,427 164,416 174,754 205,547 Professional fees 2,810 8,087 2,895 1,445 1,353 Vail Square Metro District 456,784 464,039 524,143 526,106 736,681 Total Economic Development:650,575 690,688 792,478 809,429 1,067,143 Debt Service: Principal 500,000 515,000 535,000 555,000 7,715,000 Interest 564,928 547,753 526,753 501,433 327,914 Total Debt Service:1,064,928 1,062,753 1,061,753 1,056,433 8,042,914 Total Expenditures 1,715,503 1,753,441 1,854,231 1,865,862 9,110,057 Excess (Deficiency) of Revenues Over Expenditures 2,414,311 2,932,342 3,794,533 4,127,865 (2,137,069) Other Financing Sources (Uses): Debt proceeds - - - - 6,386,000 Issuance costs - - - - (105,360) Transfers out (3,546,063) (4,179,718) (4,599,998) (3,804,281) (1,809,400) Total Other Financing Sources (Uses)(3,546,063) (4,179,718) (4,599,998) (3,804,281) 4,471,240 Net Change in Fund Balance (1,131,752) (1,247,376) (805,465) 323,584 2,334,171 Fund Balance - January 1 5,443,901 4,312,149 3,064,773 2,259,308 2,582,892 Fund Balance - December 31 4,312,149 3,064,773 2,259,308 2,582,892 4,917,063 Update of Official Statement of Tables to be Updated Table VI December 31, 2020 TABLE VI History of Revenues, Expenditures and Changes in Fund Balance Vail Reinvestment Authority Town of Vail, Colorado Issuer's Annual Report G3 June 1, 2021 - Page 120 of 225 2020 2020 2021 Budget Actual Budget Revenues: Other: Property tax 6,768,800 6,851,562 6,768,800 Interest on investments 17,492 21,328 2,000 Interest Subsidy (Build America Bonds)82,541 100,098 - Shared costs/project reimbursements - - Total Revenues 6,868,833 6,972,988 6,770,800 Expenditures: Economic Development: Administration 121,600 121,842 121,600 Office supplies - Fiscal agent fees 2,800 1,720 - Treasurer's fees 203,064 205,547 203,064 Professional fees 10,000 1,353 10,000 Vail Square Metro District 668,136 736,681 668,136 Capital outlay - - Total Economic Development:1,005,600 1,067,143 1,002,800 Debt Service: Principal 7,715,000 7,715,000 618,000 Interest 334,243 327,914 72,316 Total Debt Service:8,049,243 8,042,914 690,316 Total Expenditures 9,054,843 9,110,057 1,693,116 Excess (Deficiency) of Revenues over Expenditures (2,186,010) (2,137,069) 5,077,684 Other Financing Sources (Uses): Debt proceeds 6,386,000 6,386,000 Issuance costs (107,159) (105,360) - Issuance premium - - - Transfers in - - - Transfers out (1,905,291) (1,809,400) (8,550,000) Total Other Financing Sources (Uses)4,373,550 4,471,240 (8,550,000) Net Change in Fund Balance 2,187,540 2,334,171 (3,472,316) Fund Balance - January 1 2,565,203 2,582,892 4,770,433 Fund Balance - December 31 4,752,743 4,917,063 1,298,117 Outstanding Issue Principal Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B 6,386,000 Total 6,386,000 TABLE VII 2020 Budget Summary and Actual Comparison / 2021 Budget Vail Reinvestment Authority TABLE VIII Outstanding Revenue Obligations Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables VII and VIII December 31, 2020 G4 June 1, 2021 - Page 121 of 225 SINGLE AUDIT REPORTS and SCHEDULES June 1, 2021 - Page 122 of 225 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 H1 M & A INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Mayor and Members of Town Council Town of Vail, Colorado We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the 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, 2020, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated May 26, 2021. Internal Control Over Financial Reporting In planning and performing our audit on the financial statements, we considered the Town’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Town’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe that a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. June 1, 2021 - Page 123 of 225 INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado H2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. McMahan and Associates, L.L.C. Avon, Colorado May 26, 2021 June 1, 2021 - Page 124 of 225 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 H3 M & A INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Mayor and Members of Town Council Town of Vail, Colorado Report on Compliance for Each Major Program We have audited the compliance of the Town of Vail, Colorado’s (the “Town”) with the types of compliance requirements described in the U.S. Office of Management and Budget’s Compliance Supplement that could have a direct and material effect on each of the Town’s major federal programs for the year ended December 31, 2020. The Town’s major federal programs are identified in the Summary of Auditor’s Results section of the accompanying Schedule of Findings and Questioned Costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (the “Uniform Guidance”). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Town’s compliance with those requirements. Opinion on Each Major Federal Program In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2020. June 1, 2021 - Page 125 of 225 INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado H4 Other Matters The results of our auditing procedures disclosed an instance of noncompliance which is required to be reported in accordance with the Uniform Guidance and is described in the accompanying Schedule of Findings and Questioned Costs as Finding 2020-001. Our opinion on the Town’s major federal programs is not modified with respect to this matter. The Town’s response to the noncompliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Cost. The Town’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control Over Compliance Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered the Town’s internal control over compliance with types of requirements that could have a direct and material effect on each major federal program to determine our auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do no express an opinion on the effectiveness of the Town’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report in internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. McMahan and Associates, L.L.C. Avon, Colorado May 26, 2021 June 1, 2021 - Page 126 of 225 Town of Vail, Colorado, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2020 H5 Part I –Summary of Auditor’s Results Financial Statements: Type of auditor’s report issued Unmodified Internal control over financial reporting: Material weakness identified None noted Significant deficiency identified None noted Noncompliance material to financial statements noted None noted Federal Awards: Internal control over major programs: Material weakness identified None noted Significant deficiency identified None noted Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with Title 2,U.S. Code of Federal Regulations,Part 200 No Major programs: Coronavirus Relief Fund CFDA #21.019 2020 CARES Act 5311 A/O Award CFDA #20.509 Dollar threshold used to identify Type A from Type B programs:$750,000 Identified as low-risk auditee No Part II –Findings Related to Financial Statements Findings related to financial statements as required by Government Auditing Standards None noted Auditor-assigned reference number Not applicable Part III –Findings Related to Federal Awards Internal control findings None noted Compliance findings Yes Questioned costs Yes Auditor-assigned reference number 2020-001 June 1, 2021 - Page 127 of 225 Town of Vail, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2020 (Continued) H6 Reference Number Findings 2020-001 Coronavirus Relief Fund (CFDA 21.019), Department of Treasury Passed through Colorado Department of Local Affairs Grant Period: Year ended December 31, 2020 Criteria or Specific Requirement: Grant criteria requires that payments from the Fund may only be used to cover costs that 1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease (COVID-19), 2) were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) and 3) were incurred during the period that begins March 1, 2020, and ends on December 31, 2021. Condition: The Town submitted reimbursement for payroll of employees affected by closures but were accounted for in the Town’s budget. Questioned Costs: Total questioned payroll costs were $135,964. Context: The finding was noted in only one of seventeen transactions selected for testing. Effect: Compliance over allowed costs was not followed. Cause: Due to the expedited nature of the Coronavirus Relief Fund, the Town planned the reimbursed cost prior to issuance of clarified guidance, which occurred later in the year. Recommendation: We recommend that the Town continue to seek additional guidance on the grant to ensure compliance requirements are followed. Views of Responsible Officials and Planned Corrective Action: We agree with the auditor's recommendation and have amended the reimbursement report to remove the disallowed cost. June 1, 2021 - Page 128 of 225 Town of Vail, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2020 H7 There were no findings for the year ended December 31, 2019. June 1, 2021 - Page 129 of 225 Pass-through Federal Entity Amount CFDA Identifying Federal Provided to Program Title Number Number Expenditures Subrecipients Environmental Protection Agency: Passed through Colorado Department of Public Health and Environment: State Nonpoint Source Management Program 66.460 114,168$ Total - Environmental Protection Agency 114,168 Department of Treasury: Passed through Colorado Department of Local Affairs: Coronavirus Relief Fund 21.019 1,219,044 378,000 Total - Department of Treasury 1,219,044 378,000 Department of Transportation: Passed through Federal Transit Administration (FTA): 2020 CARES Act 5311 A/O Award 20.509 1,504,242 Total - Department of Transportation 1,504,242 Department of Justice: Passed through Colorado Department of Public Safety: Bulletproof Vest Grant 16.607 n/a 475 Total - Department of Justice 475 TOTALS 2,837,929$ 378,000$ Note 1. Basis of Presentation: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Vail (the "Town") and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in this schedule or used in this schedule may differ from amounts presented in or used in the preparation of the Town's general purpose financial statements. Note 2. Determining the Value of Non-cash Awards Expended: The Town had no non-cash awards expended during 2020. Note 3. Indirect Facilities and Administration costs The Town does not use the 10% de minimis cost rate allowed in in §200.414, Indirect (F&A) Costs , of the Uniform Guidance. Instead, the Town prepares an annual cost allocation plan to allocate indirect costs. Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2020 Town of Vail, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2020 H8 June 1, 2021 - Page 130 of 225 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 : W ildland F ire S easonal O utlook and W ildland Fire Mitigation Program Updates P RE S E NT E R(S ): Paul Cada, W ildland P rogram Manager Mark Novak, F ire C hief AC T IO N RE Q UE S T E D O F C O UNC IL : P rovide f eedback to staff regarding recommended actions AT TAC H ME N TS : Description 2021 W ildland Fir e Update June 1, 2021 - Page 131 of 225 Wildland Fire Program Update Mark Novak-Fire Chief Paul Cada-Wildland Program Manager June 1, 2021 - Page 132 of 225 2020 Significant Colorado Wildfires Town of Vail | www.vailgov.com/fire •Pine Gulch-139,000 acres, $35 million •Grizzly Creek-32,431 acres, $36 million •Cameron Peak -208,913 acres, $133 million suppression cost, 224 residential structures lost estimated at $6.3m in value. •Williams Fork -14,577 acres, $22.5 million •East Troublesome-192,560 acres, $18 million suppression cost, 366 residential structures estimated at $200m in value Grizzly Creek Fire, Photo by Post Independent June 1, 2021 - Page 133 of 225 2021 Fire Year Predictions Town of Vail |www.vailgov.com/fire | June 2021 •Near average snow year, but early peak •Near average spring may rapidly change to critical conditions due to persistent drought •Monsoon predictions unclear June 1, 2021 - Page 134 of 225 Fire Restrictions Town of Vail | www.vailgov.com/fire | June 2021 •Used to manage the risk of human caused fire •Restrictions are coordinated with federal land management agencies, Eagle County, towns and fire protection districts •Restrictions are implemented based on current and predictions fire conditions •Current conditions do not warrant restrictions; trends point to early implementation of restrictions June 1, 2021 - Page 135 of 225 What can we do? Town of Vail | www.vailgov.com/fire | June 2021 June 1, 2021 - Page 136 of 225 Public Education Wildfire Ready Vail •5 Tasks •Get Alerts •Community Connect •Make a Plan •Site Visit •Clean Up Results Orientated EC Alert signups-100% increase over May 2020 Community connect-Doubled signups since launch 400% increase in webpage traffic on wildfire evaluation webpages with numerous follow- up visits Early utilization of chipping program June 1, 2021 - Page 137 of 225 Public Education •Completion of curbside fire evaluations •Continued and enhanced participation with WiRe Center focused on community engagement •Continued emphasis on personal responsibility and the changing fire environment Town of Vail | www.vailgov.com/fire | June 2021 June 1, 2021 - Page 138 of 225 Wildfire Code Amendments Town of Vail | www.vailgov.com/fire | June 2021 •March of 2020 was the start of implementation for the Wildfire Code Amendments •Code applies to new construction, additions over 500 ft2 and substantial deck replacements •Implementation has been reasonably smooth June 1, 2021 - Page 139 of 225 Evacuation Planning Town of Vail | www.vailgov.com/fire | June 2021 •Over the past 6 months response agencies across Eagle County have worked together to improve efficiency of evacuation system county wide •Changes based on lessons learned in 2020 •Evacuation success is dependent on having a prepared community Evacuation of Estes park during the Cameron Peak Fire Photo from Boulder Daily Camera June 1, 2021 - Page 140 of 225 Operational Readiness Town of Vail | www.vailgov.com/fire | June 2021 •Wildland Division provides supplemental staffing 7 days a week from May through October •Fire Department implementing enhanced PPE to expedite wildland response •Wildland deployments over the past several years is leading to higher levels of qualification and better levels of service to the community •Wildland Division is building depth and qualification to implement both pile and broadcast burns June 1, 2021 - Page 141 of 225 Community Wildfire Protection Plan (CWPP) Implementation Town of Vail | www.vailgov.com/fire | June 2021 •Continued implementation of projects in Intermountain and Booth Creek on TOV, USFS and CPW lands •Booth Creek Prescribed Fire and Mechanical Thinning •Intermountain Fuels •Deer Underpass •Future project planning •Discussions with Vail resorts •Maintenance of previously treated areas June 1, 2021 - Page 142 of 225 Booth Creek Environmental Analysis Town of Vail | www.vailgov.com/fire | June 2021 •Pace of planning is dictated by USFS staffing and processes •Regional and national wilderness advocacy groups are interested in this project and are advocating for minimizing treatment in and near wilderness areas •Treatment options in designated wilderness areas will be limited to the most “minimal tool” available to accomplish the project objectives which will add complication to project implementation •Treatment within the Core Act wilderness expansion area is being analyzed and planned as though it is already wilderness potentially minimizing available treatment options June 1, 2021 - Page 143 of 225 Support and Recognition Town of Vail | www.vailgov.com/fire | June 2021 •2021 IAFC Ready, Set, Go-Community Chipping Grant Award •Supports expanded chipping services for the community in 2021 •Forest Restoration and Wildfire Risk Mitigation Grant Application •If awarded grant will support expanded treatment of non-federal lands-increased staffing will be necessary to meet objectives •Hosting IAFC Fire Department Exchange Program -June 2022 June 1, 2021 - Page 144 of 225 Accelerating Progress Town of Vail | www.vailgov.com/fire | June 2021 Community impact from wildfire is WHEN, not if. To accelerate our community's preparedness, does Council support: •Amended codes to increase protection of homes built in the wildland urban interface •Expand applicability of codes to include reskins and entire landscapes of development projects •Create mandatory 5’ non-combustible zone around all buildings •Allocate annual funding for fuels reduction projects •Expand wildland division staffing to support CWPP project implementation •Aggressively advocate for actions that prioritize community safety above resource objectives in the Booth Creek Environmental Analysis. June 1, 2021 - Page 145 of 225 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 : O rdinance No.11, S eries 2021, S econd Reading, A n Ordinance Repealing and Reenacting Title 11, Sign R egulations, Vail Town Code, P ursuant to S ection 12-3-7, Amendment, to A dopt Updated S ign Regulations, and S etting F orth D etails in R egard T hereto P RE S E NT E R(S ): Erik Gates, Planner AC T IO N RE Q UE S T E D O F C O UNC IL : A pprove, approve with amendments, or deny Ordinance No.11, Series 2021 S econd R eading, A n Ordinance R epealing and R eenacting Title 11, Sign Regulations, Vail Town Code, P ursuant to S ection 12-3-7, A mendment, to A dopt Updated S ign R egulations, and S etting F orth Details in R egard Thereto B AC K G RO UND: On J une 18th, 2015, the S upreme Court of the United S tates (S C O T US ) issued a decision on R eed v. Town of Gilbert in f avor of R eed that put the constitutionality of sign codes in many municipalities, including the Town of Vail, into question. T he S C O T US decision generally points to municipalities needing sign codes that address time, place, and manner distinctions only when it comes to sign regulation. C hanges proposed in the current draft of the new sign code aim to remove content and speaker distinctions as much as possible, to “clean up” the code by removing redundant or irrelevant definitions and regulations, and to address concerns brought by the P E C at previous meetings. S TAF F RE C O M M E ND AT I O N: Approve, approve with amendments, or deny Ordinance No.11, S eries 2021 S econd Reading, An Ordinance Repealing and Reenacting Title 11, Sign Regulations, Vail Town C ode, Pursuant to S ection 12-3-7, A mendment, to Adopt Updated S ign Regulations, and S etting F orth D etails in R egard T hereto AT TAC H ME N TS : Description Council Memorandum Ordinance No. 11, Series of 2021, Second Reading [Attachment A] O rdinance N o. 11 Series of 2021 [Attachment B] S ki Base Area O verlay Map [Attachment C] Detailed C hanges from the E xisting Sign Code [Attachment D] S taff Memorandum, P E C20-0032, April 26, 2021 [Attachment E ] P E C Minutes, April 26, 2021 June 1, 2021 - Page 146 of 225 TO: Vail Town Council FROM: Community Development Department DATE: June 1, 2021 SUBJECT: Second Reading of Ordinance No. 11, Series of 2021, an ordinance to amend Title 11, Sign Regulations, Vail Town Code, pursuant to Section 12-3-7, Amendment, Vail Town Code, in order to reduce content based regulations following the US Supreme Court ruling in Reed v. Town of Gilbert and accompanying changes, 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. 11, Series of 2021, an ordinance to amend Title 11, Sign Regulations, Vail Town Code, in order to reduce content based regulations following the US Supreme Court ruling in Reed v. Town of Gilbert and accompanying changes. On April 26, 2021, the Planning and Environmental Commission (PEC) forwarded a unanimous recommendation for approval to the Vail Town Council for the proposed amendment, subject to the findings noted in Section IX of the staff memorandum sent to the PEC (Attachment D). On May 18, 2021, the Vail Town Council heard this amendment for the first reading. The Town Council did not recommend any changes to the ordinance and unanimously approved the request upon first reading. II. ACTION REQUESTED OF THE TOWN COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 11, Series of 2021, upon second reading. III. DESCRIPTION OF REQUEST The Community Development Department requests that the Vail Town Council consider the proposed prescribed regulations amendment to Title 11, Sign Regulations, Vail Town Code, pursuant to Section 12-3-7, Amendment, Vail Town Code. The amendment June 1, 2021 - Page 147 of 225 Town of Vail Page 2 would replace the existing sign code with language and regulations that are content- neutral while maintaining existing signage allowances as much as is feasible. Various changes are proposed for nearly every chapter of the Title 11 sign code. Please see Attachment A for the new proposed sign code language and Attachment C for how the changes present in the proposed sign code relate to the existing sign code language. IV. BACKGROUND/SITUATION TO BE ADDRESSED On June 18th, 2015, the Supreme Court of the United States (SCOTUS) issued a decision on Reed v. Town of Gilbert in favor of Reed that put the constitutionality of sign codes in many municipalities, including the Town of Vail, into question. The majority opinion of the Court held that all content-based sign code regulation, regulation that requires one to read the content of a sign’s speech in order to determine how it is regulated, is subject to strict scrutiny in court. Strict scrutiny for a regulation would require a government to show that the regulation both furthers a compelling government interest and is narrowly tailored to further a government interest; this level of review is usually fatal to the regulation in question. The Court also held that speaker distinctions in sign codes, regulations that apply to a specific speaker or type of speaker, may be subject to strict scrutiny if the distinction is reflective of a content preference by the governing entity. The SCOTUS decision generally points to municipalities needing sign codes that address time, place, and manner distinctions only when it comes to sign regulation. However, the decision left a few open questions in regard to what can and can’t be safely regulated. Namely, whether on-premise vs. off-premise distinctions are content neutral, if time restrictions on signs for one-time events are content neutral, and whether the same level of scrutiny applies to content regulations for commercial signs as it does to noncommercial signs. These questions are likely to have more concrete answers as they are heard in lower courts following the Reed v. Town of Gilbert decision. Regardless, in the wake of this decision many municipalities across the United States have moved to update their sign codes to remove content distinctions in their regulations wherever possible, and to reduce on-premise vs. off-premise distinctions and commercial content regulations as much as is manageable. In 2019, Staff began to examine Vail’s sign code in detail in order to identify problematic regulations for adjustment or removal. Staff researched other municipalities that had updated their regulations and academic reviews of the Reed v. Gilbert case in order to assist in rewriting regulations. In late September and early October of 2020, three engagement meetings were held virtually in order to discuss the proposed changes to the Title 11 sign code. These meetings were not highly attended, but the proposed changes were generally well received by those in attendance. Following these meetings, the updated proposed sign code was reviewed by the Town Attorney who provided further recommendations for adjustments. Changes proposed in the current draft of the new sign code aim to remove content and speaker distinctions as much as possible, to “clean up” the code by removing redundant June 1, 2021 - Page 148 of 225 Town of Vail Page 3 or irrelevant definitions and regulations, and to address concerns brought by the PEC at previous meetings. The new sign code in the form of a repeal and replace ordinance (Attachment A), the proposed Ski Base Overlay sign district map (Attachment B), and a line-by-line breakdown of the proposed changes from the existing sign code (Attachment C) are attached for review. 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 Staff finds the proposed sign code update furthers the general and specific purposes of the zoning regulations by making regulations more fair and consistent through the removal of most content and speaker-based distinctions. The sign code update ultimately allows for a greater degree of freedom and creativity in sign design as a result of this effort as well. While the proposed update removes much of the Town’s ability to control the actual content of a sign itself, the update generally preserves current signage area and number allowances, thereby preventing unnecessary clutter. 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 While little of the Vail comprehensive plan speaks directly about signage, it can be inferred that this proposed update overall helps to achieve the applicable goals, objectives, and policies of the comprehensive plan. A common theme in Vail’s documents that make up the comprehensive plan speak of the need to preserve the existing character of the town. For example, a goal in the Vail Land Use Plan it states: 4.3. The ambiance of the Village is important to the identity of Vail and should be preserved. (Scale, alpine character, small town feeling, mountains, natural settings, intimate size, cosmopolitan feeling, environmental quality.) These elements of ambiance mentioned above can still be regulated in the town’s signs through size constraints, number constraints, material constraints, lighting constraints, and location constraints without having to enforce content distinctions. Staff finds that this criterion has been met. June 1, 2021 - Page 149 of 225 Town of Vail Page 4 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 Vail’s sign code has had one minor update, relating to Ski Base Area Signs, since 2010. This means that the majority of the town’s sign code was written well before the SCOTUS determination in Reed v. Town of Gilbert. Because of this, much of the existing sign code was written in a regulatory landscape that no longer exists. Prior to 2015, though not universally, content distinctions in sign codes were often subject to intermediate scrutiny at worst and successfully justified through purposes that claimed no favoritism for any particular viewpoint or speaker. While these purposes are still important to sign code regulations, content-based regulations now require a significantly higher burden of proof from local governments to show that these regulations are furthering a compelling government interest and constitutional. For many content-based regulations this is not feasible, if not impossible. 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. The proposed regulations should not significantly increase clutter in Vail via signage, and the regulations do not limit the town’s ability to regulate signage size or location. Due to the nature of these changes to the sign code largely being the removal of content restrictions, they should have no impact on other existing land use regulations and are not expected to create nonconformities with existing signs. 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. 11, Series of 2021, upon second reading, the Planning and Environmental Commission recommends the Town Council pass the following motion: "The Vail Town Council approves, on second reading, Ordinance No. 11, Series of 2021, a prescribed regulation amendment to amend Title 11, Sign Regulations, Vail Town Code, in order to reduce content based regulations following the US Supreme Court ruling in Reed v. Town of Gilbert and June 1, 2021 - Page 150 of 225 Town of Vail Page 5 accompanying changes, pursuant to Section 12-3-7, Amendment, Vail Town Code.” Should the Vail Town Council choose to approve Ordinance No. 11, Series of 2021, the Planning and Environmental Commission recommends the Town Council makes the following findings: “Based upon a review of the criteria outlined in Section VII of the April 26, 2021 staff memorandum to the Planning and Environmental Commission, and the evidence and testimony presented, the Vail Town Council finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the 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. 11, Series of 2021 B. Ski Base Area Overlay Map C. Detailed Changes from the Existing Sign Code D. Staff Memorandum, PEC20-0032, April 26, 2021 E. PEC Minutes, April 26, 2021 June 1, 2021 - Page 151 of 225 ORDINANCE NO. 11 Series of 2021 AN ORDINANCE REPEALING AND REENACTING TITLE 11, SIGN REGULATIONS, VAIL TOWN CODE, PURSUANT TO SECTION 12-3-7, AMENDMENT, TO ADOPT UPDATED SIGN REGULATIONS, AND SETTING FORTH DETAILS IN REGARD THERETO… WHEREAS, the Town of Vail (the “Town”), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the “Charter”); WHEREAS, the members of the Town Council of the Town (the “Council”) have been duly elected and qualified; WHEREAS, the Town has determined that amendments to the Vail Town Code are necessary to ensure, among other things, that the To wn's sign regulations are consistent with the U.S. Supreme Court's decision in Reed v. Town of Gilbert, 135 S. Ct. 2218 (2015); WHEREAS, the Planning and Environmental Commission of the Town of Vail has held a properly noticed public hearing on the proposed amendment on April 26, 2021 in accordance with the provisions of the Vail Town Code; WHEREAS, the Planning and Environmental Commission recommended approval of these amendments at its April 26, 2021 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 11, Sign Regulations, 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: June 1, 2021 - Page 152 of 225 Section 1. Title 11, Sign Regulations, Vail Town Code, is hereby repealed in its entirety and reenacted to read as follows: CHAPTER 1: DESCRIPTION, PURPOSE, AND APPLICABILITY 11-1-1: DESCRIPTION: This title may be cited as the SIGN REGULATIONS for the Town, and shall be incorporated as title 11 of this code. 11-1-2: PURPOSE: A. General Purpose: This Title is enacted for the purpose of promoting the health, safety, and general welfare of the Town of Vail and to promote the coordinated and harmonious design and placement of signs in the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of the highest quality. B. Specific Purpose: This Title is intended to achieve the following specific purposes: 1. To describe and enable the fair and consistent enforcement of signs in the Town of Vail. 2. To encourage the establishment of well designed, creative signs that enhance the unique character of Vail's village atmosphere. 3. To preserve a successful and high quality business environment that is aided by signs that identify, direct, and inform the public. 4. To aid in providing for the growth of an orderly, safe, beautiful, and viable community. 5. To preserve freedom of expression in the Town of Vail. C. This Title is not intended to restrict noncommercial speech on the basis of its content, viewpoint, or message. 11-1-3: APPLICABILITY: Except as provided elsewhere in this title, the design, placement, and use of any signs shall be in compliance with all of the regulations specified in this title. All signs in the Town of Vail are subject to the design guidelines and standards (chapter 5 of this title) and design review. June 1, 2021 - Page 153 of 225 11-1-4: SEVERABILITY CLAUSE: The severability of any section, subsection, sentence, clause or phrase, as set forth in Section 1-2-4 of this Town Code. CHAPTER 2: DEFINITIONS 11-2-1: DEFINITIONS ENUMERATED: ABANDONED SIGN: A sign, and its supporting structure, that has ceased to be used for the display of sign copy. ADMINISTRATOR: The director of the department of community development or his/her designee. AGGRIEVED PERSON: Any person who will suffer an adverse effect to an interest protected or furthered by this title. The alleged adverse interest may be shared in common with other members of the community at large, but shall exceed in degree the general interest in community good shared by all persons. ANIMATED SIGN: Any sign or part of a sign that changes physical position by any movement or rotation or that gives the visual impression of such movement or rotation. AWNING OR CANOPY: A permanently roofed shelter covering a sidewalk, building entrance, window, or other outdoor space. This shelter may be wholly or partially supported by a building, columns, poles, or braces extending from the ground. BUILDING FRONTAGE: The horizontal, linear dimension of any side of a building that has a usable public entrance that parallels a major vehicular or pedestrian way or other major circulation area. BUILDING IDENTIFICATION SIGN: A sign permitted based on building frontage, regardless of the number of tenants residing therein. BUSINESS FRONTAGE: The horizontal, linear dimension of any side of an above grade level that faces a major vehicular or pedestrian way and has its own public entrance for the exclusive use of said business. BUSINESS SIGN: A sign placed on a business frontage, typically as a wall or projecting sign. BUSINESS, VACATED: A commercial entity that has been closed and vacated for more than ninety (90) days without intent to reopen. June 1, 2021 - Page 154 of 225 CHANGEABLE COPY: A manually operated sign that displays content that can be easily changed or altered. CLEARANCE: The vertical distance from existing grade to the lowest hanging point of any projecting/hanging sign or flag. CONSTRUCTION SIGN: A temporary sign located on a parcel of property, on which construction activities of any type are being actively performed. DIRECTIONAL SIGN: a sign located within five (5) feet of an entrance or exit to a lot, for any building on the lot, or for parking for the lot. DISPLAY BOX: A freestanding or wall sign that is enclosed in glass or a similar clear material on at least one side. ELECTRONIC MESSAGE CENTER: A sign that contains changing messages or images composed of electronically illuminated segments and/or a series of grid lights, including, but not limited to, cathode ray, LED, plasma, LCD, fiber optic, or other electronic media or technology. ELECTRONIC SIGN: A sign utilizing video screens, variable message, digital display and similar features. Illumination sources may include, but are not limited to, LCD, LED, incandescent, and other similar light sources. Messages may roll, scroll, dissolve, and alternate periodically. ERECT: To build, construct, attach, hang, place, mount, suspend, or affix a sign: This also includes the painting of wall signs, murals or supergraphics. FINISHED GRADE: The existing level of a property after any development or construction activity and prior to the erection of a sign. FIRST FLOOR OR STREET LEVEL: For the purposes of calculating allowable sign area, first floor or street level shall be any floor, or portion of any floor, of a structure located at or nearest to (either above or below) the level of the adjacent vehicular or pedestrian way, as determined by the administrator. More than one floor, or portion of floors, may be defined as first floor or street level within a single structure. FLAG: Any fabric or similar lightweight material typically attached to a staff or pole, which is intended to be permanently affixed to the ground or attached to a building. FLASHING SIGN: Any directly or indirectly illuminated sign that exhibits changing natural or artificial light or color effects by any means whatsoever. June 1, 2021 - Page 155 of 225 FREESTANDING SIGN: A single or multi-faced sign that is detached from a building and is affixed to a supporting structure or imbedded in and extending from the ground. GOVERNMENT SIGN: Any sign erected or installed by a Federal, State, County, or Local government agency. HEIGHT: For the purposes of this title, the height above existing grade to the highest part of a sign and its structures, unless otherwise noted or described. ILLUMINATED SIGN: A sign emitting or reflecting a steady suffused or glowing light. ILLUMINATION, DIRECT: Lighting by means of an unshielded light source whereby the light source is directly visible to the viewer. ILLUMINATION, HALO: An internal light source, that is not visible to the viewer, for a sign making use of opaque surfaces such that light only shines through the back and sides of the sign. ILLUMINATION, INDIRECT: A light source separated from the sign that illuminates the sign's surface by means of spotlights or similar fixtures with reflective housings that control and direct light onto the sign area; the indirect light source is not visible to the viewer. ILLUMINATION, INTERNAL: A light source that is not directly visible to the viewer and is within a sign that makes use of a translucent screening; prohib ited in the Town of Vail, excluding for Government Signs MASONRY INSCRIPTION: Any text or numeral etched into masonry. MURAL: A work of art or a painting that is applied to, and made an integral part of, an exterior wall. NEIGHBORHOOD SIGN: A sign located within common or jointly owned spaces in a residential district. NONCONFORMING SIGN: Any sign that was approved by the Town of Vail, and erected and maintained prior to the enactment of this title and any amendments thereto, but that fails to conform to all applicable regulations and restrictions of this title. OFF PREMISES SIGN: Any sign located on a premise not owned or rented by the owner of the sign. June 1, 2021 - Page 156 of 225 OPEN HOUSE: The period of time during which a specific property is actively listed for sale, as evidenced by such parcel's listing in a multiple listing service or other real estate listing service, and is open for viewing by potential buyers or renters. OPEN HOUSE SIGN: A temporary sign used in association with a property conducting an open house. PORTABLE SIGN: A sign that is not permanently attached to the ground, a building, or a structure. This does not include a vehicle mounted sign as defined herein. PRIVATE WARNING SIGN: A sign designed to warn others of specific dangers or regulations on the property on which the sign is erected. PROJECTING SIGN: A sign that is attached to a building, extending horizontally beyond the surface of the building to which it is attached. PUBLIC ENTRANCE: An entrance to a building or business that is customarily used or intended for use by the general public. Fire exits, employee entrances, loading dock entrances not generally used by the public, French doors that open onto a patio but are not used as a primary entrance, and other similar entrances shall not be considered public entrances. A double door shall be counted as one public entrance. QUANTITY: The number of signs allowed a business or building. REFLECTIVE SURFACE: Any material or device that has the effect of intensifying reflected light, including but not limited to, Scotchlite®, Day-Glo®, glass and luminous paint. RESIDENTIAL SIGN: A small sign permitted for every residence in the Town of Vail. SIGN: Any object, device, display, structure, or fixture situated in the public view and involving graphics, colors, symbols, written copy, or illumination and which is used to communicate, advertise, draw attention to, or identify an object, person, institution, organization, business, product, service, event, or location by any means including words, letters, figures, designs, symbols, fixtures, colors, motion, illumination, or projected images. SIGN DISTRICT: Any one of three (3) areas designated by the Town of Vail in this title, each of which is subject to different standards. SIGN MAINTENANCE: The replacing, repairing or repainting of a sign and/or its structure due to ordinary wear and tear, weathering, or accident. SIGNPOSTS AND POLES: Any vertical upright(s) that supports a freestanding sign, that is not attached to or braced by any other structure. June 1, 2021 - Page 157 of 225 SIGN PROGRAM: A master plan designed to show the number and relationship of signs for any building or cluster of buildings that houses multiple tenants and is therefore allowed multiple signs. SIGN STRUCTURE: The supports, uprights, braces, hanging devices, and framework of a sign. SITE: As defined in Section 12-2-2 of the Vail Town Code. SKI BASE AREA: For the purpose of regulating ski base signs, any area within Vail’s Ski Base Sign District. SKI BASE SIGN: A sign for use within the Town of Vail’s Ski Base Sign District. TEMPORARY SIGN: A sign that is intended for a definite and limited period of display that is not permanently affixed to a structure or sign structure. THEATER: An establishment for the rehearsal and presentation of performing arts and/or the showing of movies or motion pictures. VEHICLE SIGN: A sign that is painted, attached to, or placed on a vehicle or the bed of a trailer, when the vehicle or trailer is parked on a public right-of-way or public property, or on private property so as to be visible from a public right-of-way, for the primary purpose of advertising products or directing people to a business or activity on the same or nearby premises, excluding a vehicle sign when the vehicle is primarily used for business purposes other than advertising. WALL SIGN: A sign that is attached to, painted onto, or erected upon the wall of a building or structure, with the exposed face of the sign in a plane parallel to the face of the wall. WINDOW SIGN: A sign installed upon or within three feet (3') of a window that is visible from the nearest pedestrian or vehicular way. This term does not include merchandise displays. ZONE: A zoning district as described in Title 12, "Zoning Regulations", of this code (e.g., ABD or CC3). A "zone" is not the equivalent o f a sign "district", as described in this title. CHAPTER 3: ADMINISTRATION 11-3-1: ADMINISTRATION OF SIGN REGULATIONS: A. Administrator: June 1, 2021 - Page 158 of 225 1. The administrator of this title as defined in section 12-3-1, “Administrator; Appointment”, of this code. 2. Responsibilities: The administrator, and his/her designees, shall be responsible for such duties as prescribed in this title and shall be responsible for enforcement of the sign regulations. The administrator shall have the right to enter on any site for the purpose of investigation or inspection related to any provision of this title, provided that the right of entry shall be exercised only at reasonable hours and that in no case shall any structure be entered in the absence of the owner or tenant without the written order of a court of competent jurisdiction. 3. Enforcement: The administrator may serve notice indicating the nature of any violation, or requiring the removal of any sign or structure in violation of this title, on the owner or his/her authorized agent, or a tenant, or on any other person who commits or participates in any violation of this title. The administrator may call upon the town attorney to institute necessary legal proceedings and the chief of police and his/her authorized agents to assist in the enforcement of this title. B. Design Review Board: The design review board, as established by title 3, chapter 4 of this code, shall be responsible for the duties prescribed in this title, which entail the review of sign applications. C. Amendments: The regulations prescribed in this title may be amended or repealed according to section 12-3-7, "Amendment", of this code. 11-3-2: LIABILITY: The provisions of this title shall not limit the liability of any person who erects or owns any sign from personal injury or property damage resulting from the placing of a sign, or resulting from the negligence or willful acts of such person or his/her agents, employees or workers, in the construction, maintenance, repair, or removal of any sign erected in accordance with a permit issued under the provisions of this title. The provisions of this title shall not impose upon the Town of Vail, its officers, employees, or the design review board, any responsibility or liability by reason of the approval of any sign. CHAPTER 4: SIGN APPLICATION PROCEDURES 11-4-1: SUBMITTAL REQUIREMENTS: Any sign erected within the Town of Vail shall be regulated by this title and is subject to design review by the staff and/or design review board of the Town of Vail. The following June 1, 2021 - Page 159 of 225 application requirements must be met for any sign that is to be erected within the Town of Vail: A. Sign Application: A sign application for the erection of an individual sign consists of an application for design review which must be obtained from the Town of Vail's community development department, properly completed per the instructions, and returned with the appropriate materials to the staff in order to begin the 2 -phase review process listed in section 11-4-2 of this chapter. B. Application Fee: A reasonable application filing fee shall be set by the Vail town council to include the cost of the Town of Vail administration time and other expenses involved in the review of the application. The fee shall be paid at the time that the application is submitted and shall not be refundable. 11-4-2: SIGN APPLICATION REVIEW: Criteria For Decision: Each sign application is subject to the following two (2) levels of review: staff review and design review board (DRB) review. A. Staff Review: The community development department of the Town of Vail shall accept for review the properly completed sign application. 1. If the staff determines that the sign application unquestionably meets the standards of this title, including the design guidelines and standards as they are stated in chapter 5 of this title and the technical requirements as they are stated in chapters 6 and 7 of this title, staff shall then approve the application. All applications approved by the staff shall be listed on the next publicly posted agenda of the design review board. 2. If the staff determines that the sign application meets the standards of this title, but does not unquestionably meet the design guidelines and standards as they are stated in chapter 5 of this title and the technical requirements as they are stated in chapters 6 and 7 of this title, staff will schedule the application for review by the design review board at their next hearing, held the first and third Wednesdays of each month. 3. If the staff determines that the sign application does not meet the standards outlined in this title, including the design guidelines and standards as they are stated in chapter 5 of this title and the technical requirements as they are stated in chapters 6 and 7 of this title, staff shall deny the application. Upon denial of the application based on lack of compliance with any part of this title, the applicant will be notified of the denial in writing and may submit a new application to the staff, file an appeal of the staff decision to the design review June 1, 2021 - Page 160 of 225 board, or file an application for a variance in accordance with chapter 10, "Variances And Appeals", of this title. B. Design Review Board Review: The design review board will review all sign applications scheduled on their agenda by staff, in the required presence of the applicant or such applicant's representative, to ascertain the proposal's conformance with the design guidelines and standards as listed in chapter 5 of this title and the technical requirements as listed in chapters 6 and 7 of this title. 1. Upon determination of compliance with the design guidelines and standards listed in chapter 5 of this title and the technical requirements as listed in chapters 6 and 7 of this title, the design review board will approve, or approve with conditions, the applicant's sign proposal. The applicant will be notified in writing of the approval and any conditions placed on the approval, and may then erect the sign according to the approved application. 2. Upon design review board denial of the application based on the design guidelines and standards listed in chapter 5 of this title and/or the technical requirements listed in chapters 6 and 7 of this title, the applicant will be notified in writing of the reasons for denial and may submit a new application to staff according to the recommendations from the design review board. The applicant may file an appeal to the town council if he/she chooses not to submit a new application to staff (see chapter 10, "Variances And Appeals", of this title). CHAPTER 5: DESIGN GUIDELINES AND STANDARDS; SIGN MEASUREMENT 11-5-1: PURPOSE: The design guidelines and standards exist to provide direction for signs within the Town of Vail that enhance local streetscapes and provide aesthetic consistency with both the built and natural environment. The guidelines and standards are intended to encourage expression and creativity. The design guidelines make use of the word "should", to allow for subjectivity and creativity, whereas the design standards make use of the word "shall", signifying strict interpretation and enforcement. The sign measurement section exists to ensure that measurement of sign area is properly calculated in order to facilitate signage that upholds the purpose of this title. 11-5-2: DESIGN GUIDELINES: Any sign erected within the Town of Vail should: A. Be consistent with the scale and architecture already present in the Town: Sign location, configuration, mounting structure, framing design, and size should be June 1, 2021 - Page 161 of 225 aesthetically harmonious with the mountain setting and the alpine village atmosphere of the Town. B. Be compatible with the placement of surrounding signs: Similar signs should not be placed within close proximity of each other, but should instead incorporate variety and visual interest within the "view corridor" that they are p laced. Signs shall not create visual clutter. The staff shall review all proposed signs in the context of adjacent signage to verify that the sign is appropriately placed. C. Be composed of predominately natural materials which may include, but are not limited to, painted, stained, solid, or carved wood; brick; stone; wrought iron or metals such as copper or brass that have been treated to prevent reflective glare; nonreflective glass and stained glass; other naturally textured building materials. Plastic and other synthetic materials that are not naturally textured, such as sign foam, vinyl or Plexiglas®, are discouraged. D. Use natural colors: 1. Earth tones: Full spectrum of soil, clay, and metallic colors; 2. Neutrals: Off whites to deep brown and black; 3. Bright colors should be used only as accents. E. Use creative graphics and lettering: The creative use of depth, relief, shading, three - dimensional projections and other pleasing textural qualities is generally encouraged. Three-dimensional projections shall not be calculated as part of total sign area, but shall be subject to design review. F. Be surrounded by landscaping: Landscaping, when appropriate, should be designed in harmony with surrounding natural landforms and native plants (xeriscaping). G. Use inconspicuous lighting: Lighting should be integrated into the overall design of the sign, both in color and placement, and should be of no greater illumination than is necessary to make the sign visible at night. Recessed and indirect light s ources are encouraged. 11-5-3: DESIGN STANDARDS: Any sign erected within the Town of Vail shall conform to the following standards: A. Compatibility: Signs shall be visually compatible with the size of surrounding structures and other signage and shall not visually dominate the structure or June 1, 2021 - Page 162 of 225 business to which they belong. The staff shall review all proposed signs in the context of adjacent signage to verify that the sign is appropriately sized. B. Colors: Fluorescent, Day-Glo® and neon colors are prohibited, unless the owner of the sign has a copyright to such color. C. Reflective Surfaces: Sign surfaces that reflect light are prohibited and shall instead be comprised of matte or flat finishes. D. Lighting Fixtures: Lighting shall be white in color. Lights shall not shine or reflect onto adjacent properties. Internal illumination and fluorescent/neon light sources are prohibited. All lighting shall be subject to design review. E. Sign Maintenance: All signs, including their support structures and related fixtures, shall be kept in good repair; this includes replacement of lighting, repainting when appropriate, and other actions that contribute to attractive signage. The display surfaces and hardware of all signs shall be properly painted, finished, or posted at all times. The glass surfaces on which window signs are affixed shall be well maintained. F. Electrical Wiring: Electrical wiring shall be concealed. In addition, all signs that contain electrical wiring shall be subject to the provisions of the adopted electrical code of the Town and the electrical components shall bear the label of an approved testing agency. G. Wind Pressure And Dead Load Requirements: Any "sign", as defined throughout this title, shall be designed to withstand wind pressures and shall support dead loads a s required by the most recent building code (IBC) at the time of construction, as adopted by the Town of Vail and determined by the chief building official. H. Placement On Public Property: Signs shall be constructed on private property outside of the Town right of way and shall not project onto the Town right of way except when permitted under a licensing agreement or a revocable right of way permit issued from the Town of Vail. I. Sign Inspection: Each sign for which a permit is required shall be subject to inspection by the staff. 11-5-4: SIGN MEASUREMENT: A. Single Faced Signs: Single faced signs (i.e., awning signs, wall signs) shall be measured by up to two (2) imaginary polygons enclosing all letters, graphics and sign base material, including framing, not integrated into the architecture of the building. June 1, 2021 - Page 163 of 225 B. Multifaced Signs: When two (2) sign faces are placed back to back and are at no point more than one foot (1') from one another, the sign area shall be the area of the larger face. Sign area of all other multifaced signs shall be calculated as the total area of all sign faces. C. Window Signs: Window signs shall be measured by the exact square footage of opaque or translucent materials affixed within three feet (3') of the window. D. Display Boxes: Display boxes shall be measured by the area of the outside dimensions of the box, including framing. E. Brackets And Fixtures: Brackets, fixtures and other means of securing a sign shall not count towards square footage of signage. CHAPTER 6: BUSINESS AND BUILDING IDENTIFICATION SIGNS 11-6-1: SIGN DISTRICTS: A. Sign District 1 (SD 1): All of vail except for property zoned ABD, CC3, and PA-2. B. Sign District 2 (SD 2): All property zoned ABD, CC3, and PA-2 (West Vail and Cascade Crossing). C. Ski Base Overlay Sign District (SBO): Properties that are a part of the Ski Base Sign Area as defined by the Ski Base Overlay map. 11-6-2: BUSINESS SIGNS: A. Business Signs: 1. Business signs in sign district 1 (SD 1): a. Number: Each business shall be allowed one business sign per public entrance. b. Area: The allowable area of each business sign shall be up to six (6) square feet. At the discretion of the design review board. c. Height: Projecting and awning signs shall have a minimum clearance of eight feet (8') above pedestrian ways and a minimum clearance of fifteen feet (15') above vehicular ways. No part of any business sign shall extend more than twenty-five feet (25') above existing grade. d. Location: Business signs shall be located on the business frontage . e. Type Of Sign: Business signs shall not be freestanding. June 1, 2021 - Page 164 of 225 f. Businesses Not On The First Floor Or Street Level: Businesses not located on the first floor or street level shall be allowed only one projecting sign with a maximum area of six (6) square feet; location shall be subject to design review. 2. Business signs in sign district 2 (SD 2): a. Number: Each business shall be allowed one (1) business sign per business frontage with a maximum of three (3) per business. b. Area: The combined area of allowed business signs is based on the combined business frontages, and is as follows: Combined Business Frontages Total Sign Area 0 feet – <13 feet 10 square feet 13 feet – <25 feet 14 square feet 25 feet – <50 feet 20 square feet 50 feet – <75 feet 30 square feet 75 feet – <100 feet 40 square feet 100 feet plus 50 square feet c. Height: Projecting and awning signs shall have a minimum clearance of eight feet (8') above pedestrianways and a minimum clearance of fifteen feet (15') above vehicularways. No part of any business sign shall extend more than twenty-five feet (25') above existing grade. d. Location: Business signs shall be located on the business frontage. e. Type Of Sign: Business signs shall not be freestanding. f. Businesses Not On The First Floor: Businesses not located on the first floor shall be allowed only one projecting sign with a maximum area of six (6) square feet; location shall be subject to design review. B. Display Boxes (SD 1 And SD 2): 1. Number: Each business shall be allowed one display box, per subsection B6 of this section. 2. Area: Display boxes shall not exceed six (6) square feet. June 1, 2021 - Page 165 of 225 3. Height: The height of the highest part of the display box shall not extend more than six feet (6') above existing grade. 4. Location: Display boxes shall be located on the business frontage. 5. Type of Sign: Display boxes shall not be freestanding signs. C. Window Signs (SD 1 And SD 2): 1. Number: The number of window signs is not regulated as long as area requirements are met. 2. Area: The area of all window signs shall not exceed fifteen percent (15%) of the area of the window in which they are placed, with a maximum size per window sign of six (6) square feet. Mullions that are more than twelve inches (12") wide shall be considered window separators, thereby signifying a separate "window area". 3. Height: The top of any window sign shall not extend more than twenty -five feet (25') above existing grade. 4. Special Provisions: Any signs placed inside of a business, within three feet (3') of a window and visible from the outside shall be counted toward total window sign area. 11-6-3: BUILDING IDENTIFICATION SIGNS: A. Description: All building signs shall comply with the regulations listed herein and shall also be subject to review by the design review board, which reviews signage based on the criteria in chapter 5 of this title. The total area allowed for building identification signage in both sign district 1 and sign district 2 includes the total number of its building signs, each measured differently, according to the type of building identification sign, and varies according to building frontage (see following tables). 1. Sign District 1 (SD 1); Allowable Building Identification Sign Area: The linear frontage of a building shall be measured in the same manner as that of a business, except that frontages shall not be delineated by inner divisions between tenant spaces. Building identification signs, unlike business signs, shall be allowed on building frontages without entrances, as long as that frontage parallels a major pedestrian or vehicular way. Building Frontage Allowed Total Sign Area June 1, 2021 - Page 166 of 225 10 feet – <50 feet 20 square feet 50 feet – <75 feet 30 square feet 75 feet – <100 feet 40 square feet 100 feet – <150 feet 50 square feet 150 feet – <200 feet 50 square feet 200 feet plus 60 square feet 2. Sign District 2 (SD 2); Allowable Building Identification Sign Area: The linear frontage of a building shall be measured in the same manner as that of a business, except that frontages shall not be delineated by inner divisions between tenant spaces. Building identification signs, unlike business signs, shall be allowed on building frontages without entrances, as long as that frontage parallels a major pedestrian or vehicular way. Building Frontage Allowed Total Sign Area 10 feet – <50 feet 20 square feet 50 feet – <75 feet 30 square feet 75 feet – <100 feet 40 square feet 100 feet – <150 feet 50 square feet 150 feet – <200 feet 50 square feet 200 feet – <250 feet 60 square feet 250 feet – <300 feet 60 square feet 300 feet – <400 feet 70 square feet 400 feet plus 80 square feet 3. Sign Districts 1 And 2; Types Of Building Identification Signs: a. Freestanding Signs: (1) Number: One (1) freestanding sign per building frontage on a major pedestrian or vehicular way, with a maximum of two (2) freestanding signs per building. (2) Area: Freestanding building identification signs shall be subject to the total sign area requirements of the building frontage tables listed previously and shall be measured according to the total sign area. June 1, 2021 - Page 167 of 225 (3) Height: No part of a freestanding building identification sign shall be higher than eight feet (8') above existing grade. (4) Special Provisions: Freestanding signs shall be placed on two (2) separate building facades facing pedestrian and vehicular ways and shall be subject to design review. A joint directory sign, though a type of freestanding sign, shall not count toward the total quantity of freestanding signs allowed. b. Wall Mounted Signs: (1) Number: One (1) sign per building frontage on a major pedestrian or vehicular way. A maximum of two (2) wall mounted building identification signs shall be allowed if a building has two (2) frontages as defined in these regulations. (2) Area: Wall mounted building identification signs shall be subject to the total sign area requirements of the building frontage tables listed previously, and shall be measured according to the size of the text only. (3) Height: No part of a wall mounted building identification sign shall be higher than twenty-five feet (25') above existing grade. (4) Special Provisions: If using two (2) signs, signs shall be placed on two (2) separate frontages, subject to design review. c. Joint Directory Signs: (1) Number: One (1) joint directory sign per building unless the building has more than one building frontage (see chapter 2, "Definitions", of this title) with a combined linear frontage that exceeds one hundred fifty feet (150'), in which case that building shall be entitled to two (2) joint directory signs. No building identification sign, other than a joint directory sign, shall be allowed for the side of a building that houses a joint directory sign. (2) Area: Each joint directory sign may contain signage of up to one (1) square foot per business tenant in a building, and up to three (3) square feet for the name of the building, placed atop the joint directory sign. (3) Height: No part of a joint directory sign shall be higher than eight feet (8') above existing grade. June 1, 2021 - Page 168 of 225 (4) Special Provisions: A joint directory sign, though a type of freestanding sign, shall not count toward the total quantity of freestanding signs allowed. However, the area of the joint directory sign shall be included in the total building identification area allowed according to building frontage. All joint directory signs shall be kept current according to business turnover. CHAPTER 7: OTHER SIGNS 11-7-1: FLAGS: A. Quantity: A maximum of two (2) flags per property. B. Size: Flags are not to exceed twenty-four (24) square feet in area. C. Height: 1. Clearance: Flags shall have a minimum clearance of eight feet (8’) when projecting over public walkways and a minimum clearance of fifteen feet (15’) when projecting over vehicular streets. 2. No flagpole shall be higher than twenty-five feet (25’) within the Town of Vail. D. Commercial Flags: Flags used for the advertisement of any business, product, or service are subject to DRB review. E. Non-Commercial Flags: Flags not used for the advertisement of any business, product, or service are exempt from DRB review, unlimited in number, but must conform to all dimensional standards. Flagpoles and other mounting structures require a building permit. F. Special Events: Flags used for the purpose of promoting community activities or the sponsors thereof shall be exempt from the application procedure described in this title and shall instead be subject to the requirements associated with acquiring a Special Events Permit from the Town of Vail. 11-7-2: RESIDENTIAL SIGNS: A. Size: Size shall not exceed one-half (1/2) square foot per dwelling unit. B. Height: No part of the sign shall extend above eight feet (8') above existing grade. C. Number: One (1) sign per dwelling unit. D. Location: Subject to design review. June 1, 2021 - Page 169 of 225 E. Design: Wall mounted, freestanding, or projecting/hanging, subject to design review. F. Lighting: Indirect. G. Landscaping: Subject to design review. H. Special Provisions: Structures having three (3) or more living units may have one (1) exterior residential sign directory, provided that the individual signs of the directory are of a standard design and size. 11-7-3: NEIGHBORHOOD SIGNS: A. Description: In all residential zone districts, any property or portion of a property under common ownership or management shall be allowed additional signage within the area under common ownership or management. The common space must be common to more than 4 units to qualify for a neighborhood sign. B. Number: One (1) sign per curb cut accessing the common space. C. Area: Combined area of all neighborhood signs shall not exceed twenty (20) square feet. D. Height: No part of a neighborhood sign shall extend more than eight feet (8’) above finished grade. 11-7-4: CONSTRUCTION SIGNS: A. Area: The area of any construction sign shall not exceed eight (8) square feet. B. Height: The top of a construction sign shall be no higher than eight feet (8') above grade. C. Number: One (1) sign per construction site. D. Location: Construction signs shall be mounted parallel and flush to the building wall or construction fence adjacent to the street or major pedestrianway to which the construction site abuts. E. Lighting: Not permitted. F. Type Of Sign: Construction signs shall not be freestanding signs. G. Display Duration: Construction signs may be displayed upon issuance of the associated building permit(s) and shall be removed prior to the issuance of a certificate of occupancy. June 1, 2021 - Page 170 of 225 H. Construction signs must comply with the current building code adopted by the Town of Vail and any other relevant state or federal law. 11-7-5: THEATER SIGNS Theaters and movie/media rental business will be allowed three (3) theater signs in the front window at any one time. The allowable area of each theater sign may be up to eight (8) square feet, subject to design review approval. Theater signs may be electronic signs. When used as a theater sign, the illumination levels of an electronic sign must be adjusted to the ambient light conditions and be no brighter than is necessary for clear and adequate visibility. When used as a theater sign, electronic signs shall not emit light between the hours of eleven o'clock (11:00) P.M. and seven o'clock (7:00) A.M. the following day. 11-7-6: OPEN HOUSE SIGNS: A. Number: For each real property that is actively listed for sale, as evidenced by such parcel's listing in a multiple listing service or other real estate listing service, one (1) temporary sign is allowed. B. Location: An Open House Sign is allowed at a street corner on the street from which the main entrance to the property is accessed. It must be placed in a manner to not obstruct the flow of traffic or impede in the safe usage of the Right -of-Way. C. Area: The area of any open house sign shall not exceed three (3) square feet. D. Height: The height of any open house sign shall not exceed four feet (4’) as measured from the top of the sign to the grade at the base of the sign. E. Display Duration: This sign is only allowed during the period of time when the property is open for viewing to the public without an appointment (aka an “open house”). Open House Signs may only be displayed between eight o’clock (8:00) A.M. and eight o’clock (8:00) P.M. on a daily basis. 11-7-7: BALLOONS: All balloons, regardless of their size, shall be subject to a special events permit. 11-7-8: PUBLIC PARKING AND LOADING SIGNS FOR PRIVATE PROPERTY: A. Description: A public parking and loading sign is permitted for private properties which provide "public unstructured parking" or "public parking structures" as defined by section 12-2-2, "Definitions Of Words And Terms", of this code, with a minimum of twenty-five (25) parking spaces and/or loading bays for use by the public. These publi c June 1, 2021 - Page 171 of 225 parking spaces must be above and beyond the requirements of title 12, chapter 10, "Off Street Parking And Loading", of this code. 1. Number: One (1) sign per public vehicular entrance, unless the administrator determines fewer or additional signs are necessary to promote the safe and expedient flow of traffic. 2. Area: The allowable area of any single public parking and loading sign shall not exceed ten (10) square feet, unless the administrator determines a smaller or larger area is necessary to promote the safe and expedient flow of traffic. 3. Height: Projecting and awning signs shall have a minimum clearance of eight feet (8') above pedestrianways and a minimum clearance of fifteen feet (15') above vehicularways. No part of any public parking or loading signs shall extend more than twenty-five feet (25') above grade. 4. Location: Subject to design review. Signs may be permitted in the Town's right of way, subject to subsection 11-5-3I, "Placement On Public Property", of this title. 5. Type: Awning, freestanding, projecting or wall mounted. 6. Lighting: Subject to design review. 11-7-9: SKI BASE AREA SIGNS: A. Description: These regulations apply to all signs erected within the ski base areas. There shall be a sign program addressing the needs of both the winter and summer seasons. It is not the intent of these regulations to provide a competitive advantage to on mountain commercial uses. 1. Number: Subject to design review. 2. Area: Subject to design review. 3. Height: Awning, projecting, wall, and electronic signs shall have a minimum clearance of eight feet (8') above pedestrianways and a minimum clearance of fifteen feet (15') above vehicularways. No part of a ski base sign shall extend more than twenty-five feet (25') above grade. 4. Location: Subject to design review. Signs may be permitted in the public right of way subject to subsection 11-5-3I, "Placement On Public Property", of this title. 5. Type: Awning, freestanding, portable, projecting, wall, and electronic signs. A - frame and sandwich board style signs are prohibited. June 1, 2021 - Page 172 of 225 6. Lighting: Subject to design review. 7. Special Provisions: A sign program is required in accordance with the provisions of chapter 8 of this title. 11-7-10: RESTAURANT SIGNS: A. Description: Additional signage allowed for all eating and drinking establishments within the Town of Vail, subject to the following standards. B. Display Boxes: 1. Number: Each business shall be allowed up to two (2) display boxes per business frontage, per subsection C5 of this section. 2. Area: Businesses shall be allowed up to six (6) square feet of display box area per business frontage. No single display box shall exceed six (6) square feet, and no business frontage shall display more than six (6) square feet of display box area. 3. Height: The height of the highest part of the display box shall not extend more than six feet (6') above existing grade. 4. Location: Display boxes shall be displayed on the business frontage. C. Specials Boards: 1. Number: Businesses shall be allowed one specials board per business frontage. 2. Area: Specials boards shall not exceed three (3) square feet. 3. Height: The height of the highest part of the specials board shall not extend more than six feet (6') above existing grade. 4. Location: Specials boards shall be attached to menu boxes, except where the administrator determines there is a practical difficulty by making the following findings, in which case the specials board may be attached to a wall or deck railing on the business frontage: a. That there exists no ability to attach the specials board to the menu box in the existing or proposed location of the menu box; and b. That there exists no ability to relocate the existing or proposed menu box to a location that meets the requirements of this title, and allows for attachment of the specials board to the menu box. June 1, 2021 - Page 173 of 225 11-7-11: ADDITIONAL TEMPORARY SIGNAGE: A. Description: Each property within the Town of Vail shall be allowed, without a permit, one (1) additional temporary sign, subject to the following standards. B. Size: No temporary sign shall not be greater than three (3) square feet in area. C. Height: No part of a freestanding sign shall extend above four feet (4’) above the finished grade. D. Design: Temporary signage falling under this provision shall be freestanding or window signs. E. Timeframe: No sign falling under this provision shall be displayed for more than fourteen (14) days per year. Additional Temporary Signage may only be displayed between eight o’clock (8:00) A.M. and eight o’clock (8:00) P.M. on a daily basis. CHAPTER 8: SIGN PROGRAMS 11-8-1: SIGN PROGRAM DESCRIPTION: The purpose of the sign program is to encourage a comprehensive approach to the design, size, number, shape, color, and placement of all signs pertaining to a particular development or building containing a business or group of businesses. A sign program shall convey an organized, innovative, and unique approach to multiple signs. 11-8-2: CRITERIA: Sign programs shall be required for all new or demolished/rebuilt multi-family residential projects and for new or demolished/rebuilt commercial projects. Sign programs may be required for other significant new developments (e.g., subdivisions, ski base facilities) or for redevelopment projects at the discretion of the staff. Existing multi -tenant commercial buildings shall be required to submit a sign program when applying for new signage. Sign programs shall be subject to the provisions, standards, and guidelines listed in this title. 11-8-3: SIGN PROGRAM REVIEW: All sign programs shall be subject to the design review process detailed in chapter 4, "Sign Application Procedures", of this title. CHAPTER 9: EXEMPT, PROHIBITED, AND NONCONFORMING SIGNS 11-9-1: EXEMPT SIGNS: June 1, 2021 - Page 174 of 225 The following signs are exempt from design review, but remain subject to the applicable requirements of this code, including, but not limited to, the design standards and guidelines listed in chapter 5 of this title and the maintenance requirements listed in section 11-11-3 of this title: A. Memorial signs, dedication plaques, or tablets; B. Government signs and signs erected by government employees in the course of their work, including directional signs, to control traffic or for other regulatory purposes; C. A mural that has received approval by the Art in Public Places Board; D. Temporary decorations or displays, when they are commonly associated with any national, local or religious holiday; E. Temporary or permanent signs erected by public utility companies or construction companies to warn of dangerous or hazardous conditions; F. Signage and decorations subject to a Special Event Permit through the Town of Vail; and G. Private Warning Signs 11-9-2: PROHIBITED SIGNS: Unless otherwise allowed by this title, the following signs are prohibited within the Town of Vail: A. Animated signs that incorporate the use of movement (aside from natural wind induced movement) through revolving, rotating, or otherwise moving parts; B. Signs with the illusion of movement; C. Signs (or the illumination thereof) that flash, pulse, move, rotate, scintillate, blink, flicker, or vary in intensity and/or color; D. Signs that incorporate projected images, emit any sound, or involve the use of live animals; E. Any sign for a business or service having been vacated for ninety (90) or more days. This provision does not apply to permanent signs accessory to seasonal businesses, provided there is clear intent to continue operation of the business; F. Any sign or structure that is unsafe or constitutes a hazard to safety for any reason; June 1, 2021 - Page 175 of 225 G. Any gas filled, illuminated or fiber optic sign that is less than four feet (4') from a window; H. Any sign or structure that obstructs ingress to or egress from a required exitway, that obstructs the view of vehicular traffic entering or exiting a public roadway, or that creates an unsafe distraction for motor vehicle operators; I. Any sign that could be confused with an official government sign (such as a traffic sign) but is not; J. Any off premises sign that is not otherwise regulated by this title; K. All billboards; L. Pennants, banners, and bunting that are not associated with a special event permit; M. Any dry erase or chalk board not approved by the provisions of this title as a specials board; and N. Vehicular signs as defined by this Title. 11-9-3: NONCONFORMING SIGNS: A. Definition: Any sign erected prior to the enactment of this title and in accord with the Town of Vail approval process, that does not conform to the provisions set forth herein (as determined by the administrative procedure listed below), or is located in newly annexed territory, shall be designated as nonconforming. B. Continuation Of A Nonconforming Sign: Any sign which has been determined to be nonconforming may continue in use and operation as a nonconforming sign pending the following provisions: 1. Any nonconforming sign that is not maintained, at the discretion of the administrator and according to section 11-2-1 of this title, shall be removed by the administrator (section 11-11-3 of this title) and shall be replaced as a conforming sign, in accordance with the regulations in this title. 2. All nonconforming signs shall be brought into conformance with the regulations in this title at the time that the represented business changes ownership, provided that the business changes its name and/or offered services, thereby requiring a new sign, or at the time that the represented business changes its name and/or services offered, thereby requiring a new sign. CHAPTER 10: VARIANCES AND APPEALS 11-10-1: VARIANCES: June 1, 2021 - Page 176 of 225 A. Purpose: A variance from the sign regulations constitutes relief from the strict interpretation of the standards and may be granted by the planning and environmental commission (PEC) in cases where there exists a physical limitation that prevents the existence, placement, or operation of a sign in compliance with the standards of this title. B. Application Procedure: An application for a variance from the sign regulations may be obtained from the community development department. The variance application must include a sign permit application, the applicant's reasons for requesting a variance, and a nonrefundable fee determined by the town council as set forth by town ordinances. The staff shall set a date for a hearing before the planning and environmental commission once the complete application has been received. C. Criteria For Approval: 1. Special circumstances or conditions must exist that apply to the land, buildings, topography, vegetation, sign structures, or other matters on adjacent lots or within the adjacent right of way, that wou ld substantially restrict the effectiveness of the sign in question. However, such circumstances must be unique to the subject site. 2. The applicant shall not have created the circumstances that have necessitated the variance request. 3. The applicant must demonstrate that the granting of the variance will be in general harmony with the purposes of this title. 11-10-2: APPEAL OF A VARIANCE: An appeal to the town council of a planning and environmental commission (PEC) decision on a sign variance application may be made in accordance with the appeal process (section 12-3-3 of this code). CHAPTER 11: VIOLATIONS AND ENFORCEMENT 11-11-1: VIOLATIONS: A. General Violations: Any sign that is deemed by the administrator to be erected, structurally altered, extended, moved, or otherwise utilized in violation of any provisions of this title, is in violation of this title and shall be subject to the procedure for removal as listed below. Any sign not maintained or kept in good repair, as determined by the administrator, is in violation of this chapter and shall also be subject to the procedure listed in section 11-11-2 of this chapter. June 1, 2021 - Page 177 of 225 B. Sign Violations On Public Property: It shall be unlawful to erect or maintain any sign in, on, over, or above any land or right of way or on any property belonging to the Town of Vail without the express permission of the Town. The administrator may summarily abate a violation of this nature by removing and confiscating any unauthorized sign without prior notice and may recover the costs incurred in removing any unauthorized signs from any person who commits, takes part in, or who assists in any such violation. However, this shall not be deemed to apply to official government notices and notices posted by governmental officers in the performance of their duties, government signs to control traffic or for other regulatory purposes, or to identify streets or warn of danger. Any person who commits, takes part in, or who assists in any such violation, shall be guilty of a violation of this code and be subject to the provisions of the penalty and costs subsections (section 11-11-2) of this chapter. 11-11-2: PROCEDURE AND ENFORCEMENT: A. Notice Of Violation: The administrator shall give written notice of the violation to the owner, general agent, lessee, or tenant of the building or premises at which such violation has been committed or to any employee, contractor, or any other person who commits, takes part in, or assists in any such violation. B. Penalty: The business, building or premises at which such violation has been committed and which has been given written notice of the violation, or any person who commits, takes part in, or who assists in any such violation, shall be subject to penalty as provided in section 1-4-1, "General Penalty", of this code for each calendar day after written notice is received that such violation continues. This shall not preclude the imposition of any other civil or administrative action or sanction. The correction of a violation of any provision of this title may not restrain imposition of these penalties. C. Failure To Comply And Town Abatement: If the person in receipt of said written notice fails to abate said violation so as to comply with the provisions of this title within the time frame specified in the notice, the administrator shall cause a sign in violation of the provisions of this title to be altered or removed at the expense of the owner or person entitled to possession of the property or sign, and shall, upon the determination of the expenses, certify them to the director of finance of the Town of Vail. D. Costs: The amount certified by the director of finance to the county treasurer for collection shall include the actual cost of repair or removal of the sign and the cost of collection plus fifteen percent (15%) of the sum of said costs, representing penalty. 11-11-3: SIGN MAINTENANCE AND REPAIR ENFORCEMENT: June 1, 2021 - Page 178 of 225 A. All signs in the Town shall be properly maintained (as defined in section 11 -2-1 of this title) at all times to the satisfaction of the administrator or they will be repaired or removed (as defined in section 11-2-1 of this title) by the administrator. B. The administrator shall have the authority to order through written notice the repair or removal of a sign and accompanying landscaping when the said sign: 1. Has been found to constitute a violation of this title; 2. Is a hazard to the safety, health, or public welfare by reason of inadequate maintenance, dilapidation, obsolescence, or abandonment; or 3. Has been damaged beyond fifty percent (50%) of its total area and deemed poorly maintained by the administrator. The procedure for removal of a sign in violation is detailed in subsection 11-11-2C of this chapter. The administrator's decision shall be subject to review by the planning and environmental commission in accordance with the provisions of the zoning ordinance (subsection 12-3-3B of this code) and may be appealed by any "aggrieved or adversely affected person" (as defined in subsection 12-3-3B2 of this code). 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 June 1, 2021 - Page 179 of 225 violation that occurred prior to the effective date hereof, any prosecuti on 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 here in. 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 18th day of May, 2021, and a public hearing for second reading of this Ordinance set for the 1st day of June, 2021, 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 1st day of June, 2021. _____________________________ Dave Chapin, Mayor June 1, 2021 - Page 180 of 225 ATTEST: ____________________________ Tammy Nagel, Town Clerk June 1, 2021 - Page 181 of 225 I S k i B a s e A r e a sSki B a s e A r e a s This map was created by the Town of Vail GIS Team. Use of this map should be for general purposes only.The Town of Vail does not warrant the accuracy of the information contained herein.(where shown, parcel line work is approximate) Last Modified: October 30, 2020 * Including the ground level south-facing ticket office windows June 1, 2021 - Page 182 of 225 Vail Sign Code Detailed List of Proposed Changes Legend Italic Text: Proposed to be added to the code Strikethrough Text: Proposed to be removed from the code Note: Sections and definitions not listed in this document are currently proposed to remain within the code, unchanged. 11-1-2: Purpose: A. General Purpose: These regulations are This Title is enacted for the purpose of promoting the health, safety, morals, and general welfare of the town of Vail and to promote the coordinated and harmonious design and placement of signs in the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of the highest quality. B. Specific Purpose: These regulations are This Title is intended to achieve the following specific purposes: 3. To preserve a successful and high quality business environment that is aided by signs that identify, direct, and inform the public. 5. To preserve freedom of expression in the Town of Vail. C. This title is not intended to restrict noncommercial speech on the basis of its content, viewpoint, or message. 11-1-4: Severability Clause: The severability of any section, subsection, sentence, clause or phrase, as set forth in Section 1-2-4 of this Town Code. 11-2-1: Definitions Enumerated: ADMINISTRATOR: A member or members of the town of Vail staff appointed by the town manager and designated to administer and enforce the guidelines outlined in this title. The director of the department of community development or their designee. June 1, 2021 - Page 183 of 225 ANIMATED SIGN: Any sign or part of a sign that changes physical position by any movement or rotation or that gives the visual impression of such movement or rotation. Prohibited in the town of Vail ARCHITECTURAL PROJECTION: Any projection that is not intended for occupancy and that extends beyond the face of an exterior wall of a building, including roof overhangs, mansards, unenclosed exterior balconies, marquees, canopies, pilasters, fascias and the like, but not including signs. AREA, SIGN (SD 1): Varies according to type of sign: See chapter 6, “Business And Building Identification Signs”, of this title. AREA, SIGN (SD 2): Varies according to type of sign: See chapter 6, “Business And Building Identification Signs”, of this title. AWNING OR CANOPY: For the purposes of this title, the rooflike cover that is temporary in nature and projects from the exterior of a building, typically over windows, walkways, doorways, or outdoor eating areas. A Permanently roofed shelter covering a sidewalk, building entrance, window, or other outdoor space. This shelter may be wholly or partially supported by a building, columns, poles, of braces extending from the ground. BALLOON: A flexible bag designed to be inflated with hot air or with a gas, such as helium, that is lighter than the surrounding air, causing it to rise and float in the atmosphere. BANNER, PENNANT, OR BUNTING: Any temporary decorative cloth or material that is related to the announcement or promotion of community events or activities or to the decoration of the town for special holidays. BILLBOARD: A permanent outdoor advertising sign that advertises goods, products, or services that are not related to the premises on which the sign is located; prohibited in the town of Vail. BUILDING IDENTIFICAITON SIGN: Any sign that displays the name of the building upon which site it is located including any graphics and language that represent the building. A sign permitted based on building frontage, regardless of the number of tenants residing therein. June 1, 2021 - Page 184 of 225 BUSINESS OPERATION SIGN: A sign that displays the name of the business upon which site it is located including any graphics and language that represent the business. BUSINESS SIGN: Any sign that displays the name of the business upon which site it is located including any graphics and language that represent the business. A sign placed on a business frontage, typically as a wall or projecting sign. CHANGEABLE COPY: A manually operated sign that displays graphical or word content that can be easily changed or altered. menu boxes, display boxes and specials boards are not considered changeable copy. DESIGN: Including but not limited to, the location, shape, dimensions, color, symbols, letters, material, and luminosity that comprise a sign. DIRECTIONAL SIGN: A sign that serves to direct pedestrian or vehicular traffic. DISPLAY BOX: A freestanding or wall sign that is enclosed in glass or a similar clear material on at least one side. For the express purpose of displaying real estate listings and current movie listing; allowed at real estate businesses and movie theaters only. ELECTRONIC DISPLAY TERMINAL: Any monitor or electronic device used to provide public information or to promote a special event; allowed for town of Vail public information purposes only. ERECT: To build, construct, attach, hang, place, mount, suspend, or affix a sign: This also includes the painting of wall signs, murals or supergraphics. EVENT, SPECIAL: The promotion of any product, political candidate, religious leader, or commercial goods or services secondary to the permitted event, shall be prohibited. FIBER OPTIC SIGN: A sign of thin, transparent, homogeneous fiber of glass or plastic that is enclosed by material of a lower index of refraction that transmits light throughout its length through internal reflections; prohibited in the town of Vail. FINE ART: Sculpture, fountains, or similar objects possessing form and beauty, including paintings or drawings. FLAG: Any city, county, state, national, organizational, or institutional symbol or insignia applied to a piece of fabric. Any fabric or similar lightweight material typically attached to June 1, 2021 - Page 185 of 225 a staff or pole, which is intended to be permanently affixed to the ground or attached to a building. FLASHING SIGN: Any directly or indirectly illuminated sign that exhibits changing natural or artificial light or color effects by any means whatsoever. Prohibited in the town of Vail. GRADE, EXISITNG FINISHED GRADE: The existing level of a property after any development or construction activity and prior to the erection of a sign. ILLUMINATION, HALO: An internal light source, that is not visible to the viewer, for a sign making use of opaque surfaces such that light only shines through the back and sides of the sign. ILLUMINATION, INTERNAL: Illumination by means of a light source that is within a sign that has a translucent background, silhouetting opaque letters or designs, or that is within letters or designs that are made of a translucent material; prohibited in the town of Vail, excluding signs used by the town of Vail for public information purposes. A light source that is not directly visible to the viewer and is within a sign that makes use of a translucent screening; prohibited in the Town of Vail, excluding Government Signs. ILLUMINATION, NEON: A light source in which a colorless, odorless, inert gaseous element known as neon is found; prohibited in the town of Vail. ILLUMINATION, PAN CHANNELED: An indirect, concealed light source which is recessed into any element of a sign and is attached directly to the face of the sign. Each element to be lit must have opaque surfaces such that the light does not shine through the sides or backs of the elements but through the front face only. ILLUMINATION, RECESSED: A source of light that is directed upon a sign and placed inside of an architectural element, such as eaves; a preferred type of sign lighting within the town of Vail. INSCRIPTION, MASONRY: The name and/or date of a building etched into masonry. Any text or numeral etched into masonry. JOINT DIRECTORY SIGN: A type of building identification and business sign that displays the name of a building, complex, or center and the names and addresses of two (2) or more businesses within. June 1, 2021 - Page 186 of 225 KIOSK: A small structure, typically located within a pedestrian walkway or similar circulation area that is used as a display space for posters, notices, exhibits, and similar displays; for public information use by the town of Vail. MENU BOX: A freestanding or wall sign that is enclosed in glass or a similar clear material on at least one side for the express purpose of displaying menus; allowed at eating and drinking establishments only. MOVIE/MEDIA RENTAL BUSINESS: A retail establishment engaged in the sale or lease of recorded movies, video games, or other forms of electronic media. MURAL: A work of art or a painting that is applied to, and made an integral part of, an exterior wall. and which shall receive approval either by the town of Vail's art in public places or design review board prior to application. A mural shall be considered a wall sign, and regulated as such, if it contains words, logos, trademarks, or graphic representations of any person, product or service that identifies or advertises a business. Signatures shall be allowed, but limited to, a maximum of two (2) square feet in size. NONCONFORMING SIGN: Any advertising structure or sign that was approved by the town of Vail, and erected and maintained prior to the enactment of this title and any amendments thereto, but that fails to conform to all applicable regulations and restrictions of this title. OFF PREMISES SIGN: Any sign that relates to or advertises products, services, or uses, or directs persons to a different premises than that upon which the sign is located. Any sign located on a premise not owned or rented by the owner of the sign. OPEN/CLOSED SIGN: A type of window sign that may be two (2) sided and displays the words "open" or "closed" on one or both sides of the sign. OPEN HOUSE: The period of time during which a specific for sale or for rent property property is actively listed for sale, as evidenced by such parcel's listing in a multiple listing service or other real estate listing service, and is open for viewing by potential buyers or renters with the realtor, broker, owner, or other similar agent present on the property. OPEN HOUSE SIGN, ON SITE: A temporary sign advertising an open house for the property on which the sign is located. OPEN HOUSE SIGN, VEHICULAR DIRECTIONAL: A temporary sign directing vehicular traffic to an open house. June 1, 2021 - Page 187 of 225 OPEN HOUSE SIGN: A temporary sign used in association with a property conducting an open house. PERSON: For the purposes of this title, any individual, firm, partnership, association, corporation, company, or organization of any kind. PLAQUE, DEDICATION: A plate, slab, or disk that is ornamented or engraved for mounting, as on a wall or the ground, in order to honor a person or persons, or to denote transfer of the property to the public for public use. POLITICAL SIGN: A temporary sign that announces, promotes, or draws attention to any candidate(s) seeking public office in an election; also any sign announcing political issues. PREMISES: Land and the buildings that are owned or rented thereupon. PUBLIC INFORMATION SIGN: An informational sign that relays directions to the public regarding resources, restrooms, or any other similar public amenity. REFLECTIVE SURFACE: Any material or device that has the effect of intensifying reflected light, such as Scotchlite®, Day-Glo®, glass and luminous paint; when pertaining to signage, prohibited in the town of Vail. including but not limited to, Scotchlite®, Day- Glo®, glass and luminous paint. RESIDENTIAL NAMEPLATE SIGN: A sign erected for the sole purpose of identifying the inhabitant(s) residing therein, and/or the house name or address, which shall not contain advertising of any kind. A small sign permitted for every residence in the Town of Vail. SIGN: A surface or space as identified in these guidelines, whether continuous or not, that identifies a business, building, or any related products and services by means of letters, numbers, figures, or other symbols, devices, or representations. Any object, device, display, structure, or fixture situated in the public view and involving graphics, colors, symbols, written copy, or illumination and which is used to communicate, advertise, draw attention to, or identify an object, person, institution, organization, business, product, service, event, or location by any means including words, letters, figures, designs, symbols, fixtures, colors, motion, illumination, or projected images. SIGN, CONSTRUCTION: A sign permitted to identify a project under construction and the associated hazardous conditions as further regulated by section 11-7-6 of this title. A June 1, 2021 - Page 188 of 225 temporary sign located on a parcel of property, on which construction activities of any type are being actively performed. SIGN, ENTERTAINMENT: A sign that serves to advertise a visual or audio media format, including, but not limited to, movies, television shows and audio CDs or records. SIGN, GARAGE SALE (Also Referred To As YARD SALE SIGN): A temporary sign that announces a garage sale or similar event. SIGN, GOING OUT OF BUSINESS: A sign that indicates that the business displaying the sign will cease to operate at any location and/or wishes to liquidate merchandise. SIGN, MEMORIAL: A sign that commemorates an event or person(s) and is placed on a memorial site, including a memorial fountain or statue. SIGN, NEIGHBORHOOD: A sign located within common or jointly owned spaces in a residential district. SIGN, OFFICIAL GOVERNMENT: A sign that is sanctioned by the town of Vail for public use, including directional signs, to control traffic or for other regulatory purposes. A sign erected, installed, or maintained by the Federal, State, County, or local government for any purpose, including without limitation traffic direction, or a sign located on a building owned by the Federal, State, County, or local government. SIGN, PORTABLE: A sign not erected with a permanent fixed location attached to the ground or other permanent structure, including, but not limited to, A-frame and sandwich board signs. A sign that is not permanently attached to the ground, a building, or a structure. This does not include a vehicle mounted sign as defined herein. SIGN, PRIVATE NO PARKING: A sign on private property that alerts others of nonpublic parking space. SIGN, PRIVATE WARNING: A sign designed to warn others of specific dangers or regulations on the property on which the sign is erected. SIGN, PROHIBITED: A sign that is not allowed within the town of Vail, or within a specific zone district of the town of Vail. SIGN, PUBLIC INFORMATION: A sign, display board or kiosk that is constructed, erected and maintained by the town of Vail, or with the permission thereof, in order to inform the June 1, 2021 - Page 189 of 225 public of public amenities, community activities, special events, and personal information. SIGN, PUBLIC PARKING AND LOADING ON PRIVATE PROPERTY: A sign that is permitted for private properties which provide "public unstructured parking" or "public parking structures" as defined by section 12-2-2, "Definitions Of Words And Terms", of this code, with a minimum of twenty five (25) parking spaces and/or loading bays available for use by the public. These public parking spaces and loading bays must be above and beyond the requirements of title 12, chapter 10, "Off Street Parking And Loading", of this code. SIGN, SALE: A sign that identifies a discounting of merchandise is taking place within the commercial establishment. SIGN, SKI BASE: A sign in a ski base area that informs the public about on mountain conditions, grooming reports, status of ski lifts and tows, and the location of ski school facilities, ski racing facilities, ski patrol facilities, outdoor recreation facilities and activities, lift ticket sales, skier and guest services. A sign for use within the town of Vail’s ski base sign district. SIGN, TEMPORARY SITE DEVELOPMENT: A sign permitted to identify and describe a project under construction and the associated hazardous conditions, during large scale development periods as determined by the Vail town council. SITE: The property that provides a location for and justifies the area of a sign. As defined in Section 12-2-2 of the Vail Town Code. SIZE: (See also definitions of Area, Sign.) The dimension of a sign, determined by the type of sign, as further regulated by chapter 6, "Business And Building Identification Signs", of this title. SKI BASE AREA: For the purpose of regulating ski base area signs, ski base areas are those areas of Vail Village, Lionshead, Golden Peak, Cascade Village, and any other future portals immediately adjacent to a ski lift or tow. For the purpose of regulating ski base signs, any area within Vail’s Ski base sign district. SPECIALS BOARD: A chalkboard or dry erase board used to display specials at eating and drinking establishments. June 1, 2021 - Page 190 of 225 STAFF: A member or members of the town of Vail community development department, appointed by the town manager and designated to administer and enforce the guidelines outlined in this title. STAINED GLASS: Multicolored pieces of translucent material held together by foil or lead cymes with various joints soldered together. SUBDIVISION ENTRANCE SIGN: A sign that identifies a subdivision or condominium complex or group of apartment buildings having at least one hundred feet (100') of combined building frontage along a vehicular or pedestrian way. TABLET: A slab or plaque with a surface that is intended for or bears an inscription. TRAFFIC CONTROL SIGN (For Private Property): A sign permitted by the town of Vail to identify private parking areas and to direct the flow of traffic on private property. VEHICLE SIGN: Any temporary sign, logo, or advertisement that is placed, painted, attached, or displayed on a vehicle. A sign that is painted, attached to, or placed on a vehicle or the bed of a trailer, when the vehicle or trailer is parked on a public right-of- way or public property, or on private property so as to be visible from a public right-of- way, for the primary purpose of advertising products or directing people to a business or activity on the same or nearby premises, excluding a vehicle sign when the vehicle is primarily used for business purposes other than advertising. YARD SALE SIGN (Also Known As GARAGE SALE SIGN): A temporary sign that announces a garage sale, open house, or similar event. 11-3-1 Administration of Sign Regulations: A. Administrator: 2. Responsibilities: The administrator/staff shall be responsible for the duties prescribed in this title, which entail the enforcement of the sign regulations. The administrator and his/her designees shall have the right to enter on any site or to enter any structure for the purpose of investigation or inspection related to any provision of this title, provided that the right of entry shall be exercised only at reasonable hours and that in no case shall any structure be entered in the absence of the owner or tenant without the written order of a court of competent jurisdiction. June 1, 2021 - Page 191 of 225 3. Enforcement: The administrator/staff may serve notice of violation and carry out removal of any sign in violation of this title, on the owner or his/her authorized agent, or a tenant, or on any other person who commits or participates in any violation of this title. The administrator/staff may call upon the town attorney to institute necessary legal proceedings and the chief of police and/or authorized agents to assist in the enforcement of this title. 11-3-3: Prescribed Regulations Amendment: 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 sign regulations; and 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 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; and 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and 5. Such other factors and criteria the PEC and/or town council deem applicable to the proposed text amendment. B. Necessary Findings: Before recommending and/or granting an approval of an application for a text amendment, the planning and environmental commission and the town council shall make the following findings with respect to the requested amendment: June 1, 2021 - Page 192 of 225 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and 2. That the amendment furthers the general and specific purposes of the sign regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. 11-5-2 Design Guidelines: Any sign erected within the town of Vail should: A. Be consistent with the scale and architecture already present in the town: Sign location, configuration, design mounting structure and framing design, and size should be aesthetically harmonious with the mountain setting and the alpine village atmosphere of the town. E. Use creative graphics and lettering: The creative use of depth, relief, shading, three - dimensional projections and other pleasing textural qualities is generally encouraged. The guidelines that apply to general sign colors likewise apply to graphics and lettering. Three- dimensional projections shall not be calculated as part of total sign area, but the size, placement, and style of the projections shall be subject to design review. 11-5-3 Design Standards: B. Colors: Fluorescent, Day-Glo® and neon colors are prohibited, unless the owner of the sign has a copyright to such color. H. Moving Parts: Signs that have, or appear to have, moving parts (aside from natural wind induced movement) are prohibited. I.H. Placement On Public Property: Signs shall be constructed on private property outside of the town right of way and shall not project onto the town right of way except when permitted under a licensing agreement or a revocable right of way permit issued from the town of Vail. J.I. Sign Inspection: Each sign for which a permit is required shall be subject to inspection by the staff. June 1, 2021 - Page 193 of 225 11-5-4 Sign Measurement: D. Menu Boxes And Display Boxes: Menu and Display boxes shall be measured by the area of the outside dimensions of the box, including framing. 11-6-1: Purpose and Description: Business and building identification signs are meant to identify and inform through the display of the business and/or building name and any graphic symbols or language pertinent to the advertised enterprise. This chapter covers all of the technical information related to business and building identification signs. All business and building identification signs shall comply with the standards outlined in this chapter and shall be subject to design review. 11-6-2: Sign Districts: A. Sign district 1 (SD 1): All of Vail except for property zoned ABD, CC3, and PA-2. B. Sign district 2 (SD 2): All property zoned ABD, CC3, and PA-2 (West Vail and Cascade Crossing). C. Sign District 3 (SD3): West Vail Interchange (CDOT right of way). Ski Base Overlay Sign District (SBO): Properties that are a part of the Ski Base Area as defined by the Ski Base overlay map. 11-6-3: Business Signs: A. Business Identification Signs: 1. Business identification signs in sign district 1 (SD 1): a. Number: Each business shall be allowed one business identification sign per public entrance. b. Area: The allowable area of each business identification sign shall be up to six (6) square feet. At the discretion of the design review board, a business identification sign for a bowling alley or movie theater may be up to fifteen (15) square feet in area, subject to the applicant demonstrating that the sign area is harmonious with the scale and architectural character of the subject business and the building in which it is located. c. Height: Projecting and awning signs shall have a minimum clearance of eight feet (8') above pedestrian-ways and a minimum clearance of fifteen feet (15') above vehicular-ways. No part of any business identification sign shall extend more than twenty-five feet (25') above existing grade. June 1, 2021 - Page 194 of 225 d. Location: Business identification signs shall be located on the business frontage. e. Type Of Sign: Business identification signs shall not be freestanding. 2. Business identification signs in sign district 2 (SD 2): a. Number: Each business shall be allowed one business identification sign per business frontage with a maximum of three (3) per business. b. Area: The combined area of allowed business identification signs is based on the combined business frontages, and is as follows: c. Height: Projecting and awning signs shall have a minimum clearance of eight feet (8') above pedestrian-ways and a minimum clearance of fifteen feet (15') above vehicular-ways. No part of any business identification sign shall extend more than twenty-five feet (25') above existing grade. d. Location: Business identification signs shall be located on the business frontage. e. Type Of Sign: Business identification signs shall not be freestanding. B. Display Boxes (SD1 And SD 2): 3. Height: The height of the highest part of the display box shall not extend more than six feet (6') from above existing grade. 6. Special Provisions: Display boxes are allowed at real estate offices and movie theaters only for the exclusive display of real estate listings and current movie listings. C. Menu Boxes (SD 1 And SD 2): Combined Business Frontages Total Sign Area 0 feet - 12.99 feet 10 square feet 13 feet - 24.99 feet 14 square feet 25 feet - 49.99 feet 20 square feet 50 feet - 74.99 feet 30 square feet 75 feet - 99.99 feet 40 square feet 100 feet plus 50 square feet June 1, 2021 - Page 195 of 225 1. Number: Each business shall be allowed up to two (2) menu boxes per business frontage, per subsection C5 of this section. 2. Area: Businesses shall be allowed up to six (6) square feet of menu box area per business frontage. No single menu box shall exceed six (6) square feet, and no business frontage shall display more than six (6) square feet of menu box area. 3. Height: The height of the highest part of the menu box shall not extend more than six feet (6') from existing grade. 4. Location: Menu boxes shall be displayed on the business frontage. 5. Special Provisions: Menu boxes are allowed only at eating and drinking establishments for the exclusive display of menus. Menu boxes for eating and drinking establishments in theaters may be electronic signs. When used as a menu box, the illumination levels of an electronic sign must be adjusted to the ambient light conditions and be no brighter than is necessary for clear and adequate visibility. When used as a menu box, electronic signs shall not emit light between the hours of eleven o'clock (11:00) P.M. and seven o'clock (7:00) A.M. the following day. D. Specials Boards (SD 1 And SD 2): 1. Number: Businesses shall be allowed one specials board per business frontage. 2. Area: Specials boards shall not exceed three (3) square feet. 3. Height: The height of the highest part of the specials board shall not extend more than six feet (6') from existing grade. 4. Location: Specials boards shall be attached to menu boxes, except where the administrator determines there is a practical difficulty by making the following findings, in which case the specials board may be attached to a wall or deck railing on the business frontage: a. That there exists no ability to attach the specials board to the menu box in the existing or proposed location of the menu box; and b. That there exists no ability to relocate the existing or proposed menu box to a location that meets the requirements of this title, and allows for attachment of the specials board to the menu box. 5. Special Provisions: Specials boards are allowed only at eating and drinking establishments for the exclusive display of specials. E. Window Signs (SD 1 And SD 2): 2. Area: The area of any all window signs shall not exceed fifteen percent (15%) of the area of the window in which it is they are placed, with a maximum size per window sign of six (6) square feet. Mullions that are more than twelve inches (12") wide shall be considered window separators, thereby signifying a separate "window area". Sale signs, June 1, 2021 - Page 196 of 225 business operation signs, promotional event posters and open/closed signs do not count toward window sign area calculations. 4. Special Provisions: Signs placed inside of a business, within three feet (3') of a window and visible from the outside, including, but not limited to, sale signs, business operation signs, and open/closed signs, shall be counted toward total window sign area. F. Sale Signs (SD 1 And SD 2): 1. Number: The number of sale signs per business is not regulated as long as area requirements are met. 2. Area: The combined area of all sale signs shall not exceed three (3) square feet per business. 3. Location: Sale signs may be attached to outdoor display fixtures or shall be placed inside windows. 4. Special Provisions: Sale signs that are displayed in windows do not count toward window sign area calculations. G. Business Operation Signs (SD 1 And SD 2): 1. Number: The number of business operation signs is not regulated as long as area requirements are met. 2. Area: Each business shall be allowed up to one and one-half (1.5) square feet of business operation signage per public entrance. 3. Height: The top of any business operation sign shall not exceed five feet (5') from the floor plate of the business. 4. Location: Business operation signs shall be allowed only at the public entrance of a business. 5. Special Provisions/Purpose: Business operation signs are intended to provide information such as affiliations, hours of operation, and accepted credit cards or forms of payment. Business operation signs do not count toward window sign area calculations. H. Open/Closed Signs: 1. Number: Each business shall be allowed one open/closed sign per public entrance. 2. Area: Each open/closed sign may contain up to 1.5 square feet of window signage per public entrance. 3. Height: The top of any open/closed sign shall not exceed five feet (5') from the floor plate of the business. 4. Type Of Sign: Open/closed signs shall be window signs. June 1, 2021 - Page 197 of 225 5. Special Provisions: The one open/closed sign allowed per public entrance may be two (2) faced for convenience. Open/closed signs do not count toward window sign area calculations. I. Sign District 3 (SD 3); Business Signs: All signs in sign district 3 (SD 3) exist under the authority of the Colorado department of transportation (CDOT) and are not regulated by the requirements set forth in this title. 11-6-4: Building Identification Signs: A. Description: A building sign indicates the name of a building, which, in some cases (such as a hotel or lodge) may be the same as the primary business and building owner. All building signs shall comply with the regulations listed herein and shall also be subject to review by the design review board, which reviews signage based on the criteria in chapter 5 of this title. The total area allowed for building identification signage in both sign district 1 and sign district 2 includes the total number of its building signs, each measured differently, according to the type of building identification sign, and varies according to building frontage (see following tables). 4. Sign District 3 (SD 3); Types Of Building Identification Signs: All signs in sign district 3 (SD 3) exist under the authority of the Colorado department of transportation (CDOT) and shall not be regulated by the requirements set forth in this title. 11-7-1: Flags, Pennants, Banners, and Bunting: A. Description: Flags, pennants, banners, and bunting shall be subject to design review and placed appropriately within the town in order to add color and vitality to the town of Vail. 1. Clearance: Flags, pennants, banners, and bunting shall have a minimum clearance of eight feet (8') when projecting over public walkways and a minimum clearance of fifteen feet (15') when projecting over vehicular streets. 2. Special Events: Banners, pennants, bunting, or decorations of a temporary nature used for the purpose of promoting community activities or the sponsors thereof shall be exempt from the application procedure described in this title and shall instead be subject to the requirements associated with acquiring a special events permit from the town of Vail. a. Review: Granting of a special events permit that involves signage shall be preceded by staff review. b. Removal: In the event that pennants, banners, or bunting are not removed by the owner on the date specified on the special events permit, June 1, 2021 - Page 198 of 225 written notice will be sent by certified mail to the owner and the item(s) will be removed by the town of Vail at the owner's expense. 3. Advertising Prohibited: Pennants, banners, and bunting that are not associated with community events or activities but are for the purpose of advertising a business or product only are not allowed. A. Quantity: A maximum of two (2) flags per property. B. Size: Flags are not to exceed twenty-four (24) square feet in area. This is the size of the Town’s international flags, but we do display some larger ones as well, s hould be able to exempt these as government signs. C. Height: 1. Clearance: Flags shall have a minimum clearance of eight (8) feet when projecting over public walkways and a minimum clearance of fifteen (15) feet when projecting over vehicular streets. 2. No flagpole shall be higher than twenty-five (25) feet within the Town of Vail. This is the height of Vail’s international flags, but the Town has poles up to 40ft. D. Commercial Flags: Flags used for the advertisement of any business, product, or service are subject to DRB review. E. Non-Commercial Flags: Flags not used for the advertisement of any business, product, or service are exempt from DRB review, unlimited in number, but must conform to all dimensional standards. Flagpoles and other mounting structures require a building permit. F. Special Events: Flags used for the purpose of promoting community activities or the sponsors thereof shall be exempt from the application procedure described in this title and shall instead be subject to the requirements associated with acquiring a Special Events Permit from the Town of Vail. 11-7-2: Private No Parking Signs: A. Size: Private no parking signs shall not exceed two (2) square feet in size and shall be composed of natural colors according to subsection 11-5-2D of this title. Private no parking signs shall read as follows: PRIVATE PARKING UNAUTHORIZED VEHICLES WILL BE TOWED BY OWNER 11-7-3: Public Information Signs: June 1, 2021 - Page 199 of 225 A. Description: All public information signs shall include any display board or kiosk with the intended use of locating posters, handouts, and cards identifying community activities, special events, and personal information. B. Size, Height, Number, Location, Design, Lighting And Landscaping: Subject to design review. C. Special Provisions: All display boards and kiosks shall be constructed, erected, and maintained by the town of Vail or with the permission thereof. 11-7-4 11-7-2: Residential Nameplate Signs: A. Description: A residential nameplate sign identifies a house by displayi ng the family name and/or the home name and the address. 1. Size: Size shall not exceed one-half (1/2) square foot per single-family or duplex structure or one-half (1/2) square foot for each multi-family unit dwelling unit. 2. Height: No part of the sign shall extend above eight feet (8') from above existing grade. 5. Design: Wall mounted, freestanding, or projecting/hanging, subject to design review. A freestanding sign may be used for a single-family or duplex dwelling structure. 8. Special Provisions: Nameplate signs in HDMF, LDMF, MDMF zones shall be restricted to one wall mounted sign per living unit in structures having two (2) or more living units. Further, such Structures having three (3) or more living units may have one exterior wall mounted nameplate residential sign directory, provided that the individual nameplates signs of the directory are of a standard design and size. All joint directory nameplate signs shall be kept current 11-7-5: Subdivision Entrance Signs: A. Description: A subdivision entrance sign identifies the entrance to a major subdivision, condominium complex, or group of apartment buildings that have at least one hundred (100) linear feet of frontage along a vehicular/pedestrian way. 1. Size: Combined size of all faces of a multisided sign may not exceed twenty (20) square feet. 2. Height: No part of the sign shall extend more than eight feet (8') from existing grade. 3. Number: Limited to a maximum of one sign per major entry providing access to a subdivision. Final decision as to the determination of a major entry shall be at the discretion of the staff, subject to design review. 4. Design: Subject to design review. 5. Lighting: Indirect or pan channeled. June 1, 2021 - Page 200 of 225 6. Landscaping: Subject to design review. 11-7-3: Neighborhood Signs: A. Description: In all residential zone districts, any property or portion of a property under common ownership or management shall be allowed additional signage within the area under common ownership or management. The common space must be common to more than 4 units to qualify for a neighborhood sign. B. Number: One (1) sign per curb cut accessing the common space. C. Area: Combined area of all neighborhood signs shall not exceed twenty (20) square feet. D. Height: No part of a neighborhood sign shall extend more than eight feet (8’) above finished grade. 11-7-6 11-7-4: Construction Signs: A. Description: A sign permitted to identify and describe a project under construction. 1A. Area: In all residential zone districts, the area of any construction sign shall not exceed eight (8) square feet. In all other zone districts, The area of any construction sign shall not exceed twenty (20) eight (8) square feet. with a horizontal dimension no greater than ten feet (10'). 2B. Height: The top of a construction sign shall be no higher than eight feet (8') from above grade. 3C. Number: One (1) sign per approved construction site entrance. 4 D. Location: Construction signs shall be mounted parallel and flush to the building wall or construction fence adjacent to the street or major pedestrianway to which the construction site abuts. 5 E. Lighting: Not permitted. 6 F. Type Of Sign: Construction signs shall not be freestanding signs. 7. Design: Subject to design review. 8. Landscaping: Not applicable. 9 G. Display Duration: Construction signs may be displayed upon issuance of the associated building permit(s) and shall be removed prior to the issuance of a certificate of occupancy. 10. Content: No content other than listed below shall be included on a construction sign: a. Construction signs shall include the following information: (1) Physical address of the construction site. June 1, 2021 - Page 201 of 225 (2) Building permit number(s). (3) Construction project name(s). (4) One emergency contact, including one individual and business name, one telephone number and one e-mail address. b. Construction signs may include the following additional information: (1) One business logo of the emergency contact. (2) Brief factual description of the construction project. (3) One website address. (4) One quick response (QR) code. (5) An artist rendering of the finished construction project. (6) Proposed construction completion date. 11. Special Provisions: Signs identifying dangerous or hazardous conditions associated with a construction site are exempt from design review as further regulated by section 11-9-1, "Exempt Signs", of this title. H. Construction signs must comply with the current building code adopted by the Town of Vail and any other relevant state or federal law. 11-7-7: Traffic Control Signs For Private Property: A. Description: A traffic control sign shall be placed in order to relieve vehicular and pedestrian traffic congestion and promote the safe and expedient flow and parking of traffic on private property. 1. Size: All vehicular traffic control signs shall not exceed one square foot except for multipurpose signs which shall not exceed four (4) square feet and except for private parking signs which shall not exceed two (2) square feet. All pedestrian traffic control signs shall not exceed one square foot, except multipurpose signs, which shall not exceed four (4) square feet, subject to design review. 2. Height: No part of the sign shall extend above six feet (6') from existing grade. 3. Number: Subject to design review. 4. Location: Location shall be subject to design review, with approval from the town engineer for any sign placed adjacent to a public street or way. 5. Design: Subject to design review. 6. Lighting: Subject to design review. 7. Landscaping: Subject to design review. 8. Special Provisions: June 1, 2021 - Page 202 of 225 a. May be either freestanding or wall mounted, with same size requirements. b. No sign shall contain any advertising, but may identify the owner by name. 11-7-8 11-7-5: Entertainment Theater Signs: Theaters and movie/media rental business will be allowed three (3) poster in the front window at any one time. The allowable area of each entertainment theater sign may be up to eight (8) square feet, subject to design review approval. Entertainment signs for theaters Theater signs may be electronic signs. When used as an entertainment a theater sign, the illumination levels of an electronic sign must be adjusted to the ambient light conditions and be no brighter than is necessary for clear and adequate visibility. When used as an entertainment a theater sign, electronic signs shall not emit light between the hours of eleven o'clock (11:00) P.M. and seven o'clock (7:00) A.M. the following day. 11-7-9: Garage and Yard Sale Signs: A. Garage sale and yard sale signs temporarily erected on residential property are subject to the following: 1. Type: Garage and yard sale signs may be freestanding or wall signs. 2. Quantity: There shall be a maximum of one sign upon the advertised property and one directional sign off site. 3. Area: The maximum area of any single sign shall not exceed one and one-half (11/2) square feet. 4. Height: The height of the sign shall not exceed five feet (5') from the grade at the base of the sign. 5. Display Duration: The allowed signs shall only be displayed within twenty four (24) hours prior to the start of the sale and during the period of time that the garage or yard sale is in progress. 11-7-10 11-7-6: Open House Signs: A. Description: Signs advertising and directing vehicular traffic to an open house are subject to the following: 1. Type: The sign may be freestanding or a wall sign. 2. A. Number: There shall be a maximum of one sign on the property where the open house is being conducted and three (3) vehicular directional signs off site. For each real property that is actively listed for sale, as evidenced by such parcel's listing in a multiple listing service or other real estate listing service, one (1) temporary sign is allowed. June 1, 2021 - Page 203 of 225 3. B. Location: An Open House Sign is allowed at a street corner on the street from which the main entrance to the property is accessed. It must be placed in a manner to not obstruct the flow of traffic or impede in the safe usage of the Right - of-Way. a. An on site open house sign shall be located on the specific property being shown, and shall not be located off site (including at real estate offices). b. Vehicular directional open house signs are prohibited within the Colorado department of transportation's (CDOT's) North Frontage Road, South Frontage Road, Bighorn Road, and Interstate 70 rights of way. c. Vehicular directional open house signs are prohibited within any designated public pedestrian area. d. Vehicular directional open house signs are prohibited on private property without the consent of the property owner. e. Vehicular directional open house signs shall not obstruct any public street, sidewalk, recreational path or any public snow removal operations. 4 C. Area: The area of any single on site open house sign or vehicular directional open house sign shall not exceed three (3) square feet. 5 D. Height: The height of any single on site open house sign or vehicular directional open house sign shall not exceed five feet (5') four feet (4’) as measured from the top of the sign to the grade at the base of the sign. 6 E. Display Duration: This sign is only allowed during the period of time when the property is open for viewing to the public without an appointment (aka an “open house”). a. On site open house signs and vehicular directional open house signs may be displayed up to one hour before the beginning of the open house and must be removed no later than one hour after the conclusion of the open house. b. On site open house signs and vehicular directional oOpen house signs may only be displayed between eight o'clock (8:00) A.M. and eight o'clock (8:00) P.M. on a daily basis. c. On site open house signs and vehicular directional open house signs shall not be displayed for more than three (3) consecutive days. 7. Design: Not subject to design review. 8. Lighting: Not permitted. 9. Special Provisions: No flags, pennants, banners, bunting, balloons, any other similar items may be attached to an on site open house sign or a vehicular directional open house sign. 11-7-11 11-7-7: Balloons: June 1, 2021 - Page 204 of 225 11-7-12 Vehicular Signs: Any vehicles displaying the name of the business associated with said vehicle shall be used on a regular basis for service and delivery or other vehicular needs related to that business activity. Vehicular signs shall not be used for the sole purpose of advertising a business, as determined by the administrator. 11-7-13 Promotional Event Posters: A. Description: A sign depicting an event in the community that is not an exclusive advertisement for the business in which it is displayed. B. Number: No more than ten (10) promotional event posters shall be displayed by a business. C. Area: The area of promotional event posters shall not exceed twenty five percent (25%) of the total window area. Promotional event posters do not count toward window sign area calculations. D. Height: The top of any promotional event poster shall not extend more than twenty- five feet (25') above existing grade. E. Location: All promotional event posters shall be displayed inside windows of a business. F. Type Of Sign: Promotional event posters shall be window signs. G. Duration: Promotional event posters shall be removed within three (3) days of completion of the promoted event. 11-7-14 11-7-8: Public Parking and Loading Signs for Private Property: A. Description: A public parking and loading sign is permitted for private properties which provide "public unstructured parking" or "public parking structures" as defined by section 12 -2-2, "Definitions Of Words And Terms", of this code, with a minimum of twenty five (25) parking spaces and/or loading bays for use by the public. These public parking spaces must be above and beyond the requirements of title 12, chapter 10, "Off Street Parking And Loading", of this code. 7. Landscaping: Subject to design review. 8. Special Provisions: a. Public parking and loading signs shall include language and/or symbols identifying parking and/or loading bays available for use by the public on no less than fifty percent (50%) of the total sign area. b. Signs may identify the owner or the project name and logo. June 1, 2021 - Page 205 of 225 c. Changeable copy may be allowed to identify the availability of parking spaces and/or loading bays. 11-7-15 11-7-9: Ski Base Area Signs: A. Description: These regulations apply to all signs erected within the ski base areas. These regulations are intended to provide the ski base areas with the signs necessary to operate the ski mountain. These signs are necessary to clearly communicate the multiseasonal recreational activities available on the ski mountain. There shall be a sign program addressing the needs of both the winter and summer seasons. The intent of these regulations is to provide the highest level of guest services while maintaining the highest quality resort character. It is not the intent of these regulations to provide a competitive advantage to on mountain commercial uses. 7. Landscaping: Subject to design review. 8. Special Provisions: a. A sign program is required in accordance with the provisions of chapter 8 of this title. b. Signs shall permit the advertising of multiseasonal recreational activities available on the ski mountain as provided by the operator of the ski mountain. c. Signs advertising on mountain third party corporate sponsors or logos as determined at the sole discretion of the town's reviewing agencies, eating and drinking establishments, retail stores and establishments, and other commercial uses shall be prohibited. 11-7-16: Informational and Directional Sign for Public Parking on Private Property: A. Description: An informational and directional sign shall be described as a portable sign with the intended use of directing the public to private property locations where vehicle parking is available for daily and/or hourly use by the public and advertising the daily and/or hourly rate. B. Applicability: An informational and directional sign shall only be allowed for property having obtained approval from the town for daily and/or hourly use of parking spaces by the public. C. Number And Location: Subject to review and approval of the administrator. D. Size And Design: All informational and directional signs shall comply with the standards prescribed in exhibit A of this section, as applicable: June 1, 2021 - Page 206 of 225 EXHIBIT A INFORMATIONAL AND DIRECTIONAL SIGN FOR PUBLIC PARKING ON PRIVATE PROPERTY E. Special Provisions: 1. An informational and directional sign shall only be displayed when the daily use of parking spaces are available to the public. 2. The daily and/or hourly rate shall be displayed and remain current at all times. 3. The penalty for violating any provision of this regulation shall be the revocation of the approval and the immediate removal of the sign upon written notice from the administrator. Any action of the administrator may be appealed to the design review board, pursuant to this title. F. Expiration: The provisions of this section shall expire on November 19, 2013. 11-7-10: Restaurant Signs: A. Description: Additional signage allowed for all eating and drinking establishments within the Town of Vail, subject to the following standards. B. Display Boxes: 1. Number: Each business shall be allowed up to two (2) display boxes per business frontage, per subsection C5 of this section. 2. Area: Businesses shall be allowed up to six (6) square feet of display box area per business frontage. No single display box shall exceed six (6) square feet, and no business frontage shall display more than six (6) square feet of display box area. 3. Height: The height of the highest part of the display box shall not extend more than six feet (6') above existing grade. 4. Location: Display boxes shall be displayed on the business frontage. C. Specials Boards: 1. Number: Businesses shall be allowed one specials board per business frontage. 2. Area: Specials boards shall not exceed three (3) square feet. 3. Height: The height of the highest part of the specials board shall not extend more than six feet (6') above existing grade. 4. Location: Specials boards shall be attached to menu boxes, except where the administrator determines there is a practical difficulty by making the following June 1, 2021 - Page 207 of 225 findings, in which case the specials board may be attached to a wall or deck railing on the business frontage: a. That there exists no ability to attach the specials board to the menu box in the existing or proposed location of the menu box; and b. That there exists no ability to relocate the existing or proposed menu box to a location that meets the requirements of this title, and allows for attachment of the specials board to the menu box. 11-7-11: Additional Temporary Signage: A. Description: Each property within the Town of Vail shall be allowed, without a permit, one (1) additional temporary sign, subject to the following standards. B. Size: No temporary sign shall not be greater than three (3) square feet in area. C. Height: No part of a freestanding sign shall extend above four (4) feet above the finished grade. D. Design: Temporary signage falling under this provision shall be freestanding or window signs. E. Timeframe: No sign falling under this provision shall be displayed for more than fourteen (14) days per year. Additional Temporary signage may only be displayed between eight o’clock (8:00) A.M. and eight o’clock (8:00) P.M. on a daily basis. 11-9-1: Exempt Signs: B. Notices posted by governmental officers in the performance of their official duties; C B. Government signs and signs erected by government employees in the course of their work, including directional signs, to control traffic or for other regulatory purposes; D C. Works of "fine art", including murals, which do not advertise a product or business and which have been approved by the town of Vail's art in public places board (AIPPB) A mural that has received approval by the Art in Public Places Board; E D. Temporary decorations or displays, when they are commonly associated with any national, local or religious holiday; however, such holiday decorations shall be removed once their condition has deteriorated such that they are no longer attractive; H. The inscription of names (or dates) of buildings, when etched into masonry in one location on any business or premises, and in conformity with chapter 6, "Business And Building Identification Signs", of this title. Each letter of an inscription may not exceed two inches (2") in height and the total engraved area may not occupy more than three (3) square feet of the surface of the building; I. Signs in the I-70 right of way, which are regulated by the Colorado department of transportation (CDOT); June 1, 2021 - Page 208 of 225 J. All political signs, as defined in chapter 2 of this title; K. Sale signs; L. Business operation signs; M. Open/closed signs; N. Promotional Event Posters O. Garage and yard sale signs; and G. Private Warning Signs 11-9-2: Prohibited Signs: E. Any sign advertising for a business or service having been vacated for ninety (90) or more days. This provision does not apply to permanent signs accessory to seasonal businesses, provided there is clear intent to continue operation of the business; N. Going out of business signs; and O. Portable signs, except official government signs, open house signs, and ski base signs. N. Vehicular signs as defined by this Title. June 1, 2021 - Page 209 of 225 TO: Planning and Environmental Commission FROM: Community Development Department DATE: April 26, 2021 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 Title 11, Sign Regulations, Vail Town Code, in order to reduce content based regulations following the US Supreme Court ruling in Reed v. Town of Gilbert and accompanying changes, and setting forth details in regard thereto. (PEC20-0032) Applicant: Town of Vail Planner: Erik Gates I. SUMMARY The Town of Vail requests the review of a Prescribed Regulations Amendment pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Title 11, Sign Regulations, Vail Town Code, in order to reduce content based regulations following the US Supreme Court ruling in Reed v. Town of Gilbert and accompanying changes. This meeting is intended to discuss changes made to the proposed sign code draft since the last Planning and Environmental Commission meeting and to request a recommendation of approval to the Vail Town Council. 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, subject to the findings in Section IX of this memorandum. II. PREVIOUS MEETINGS On March 23rd, 2021, Staff brought a draft to the PEC for a review of the broad approach to the sign regulations. Staff did not ask for a recommendation to the Town Council at this meeting, but instead asked for broad feedback from the Commission. Concerns brought by the PEC were: June 1, 2021 - Page 210 of 225 Town of Vail Page 2 • A concern over the lack of regulations for theater signage due to an understanding that theaters have unique and additional signage needs. • Concerns in relation to the additional temporary signage section, specifically related to the amount of signage being allowed and a concern that this would lead to an overabundance of real estate related signs. Staff returned to the PEC on April 12th, 2021, with changes that addressed these concerns. At this meeting staff also discussed, in detail, proposed changes to the sign code that would have an effect on signage allowances. Through this meeting, the PEC recommended a number of additional changes which included: • Reducing the maximum area allowed for any construction sign to 8 square feet • Allowing one (1) construction sign at each approved construction site entrance o Staff has amended the construction sign section to reflect both of these requests • Setting a timeframe during the day for the display of additional temporary signs and open house signs o Staff has set a timeframe of 8 am to 8 pm as the allowed display period for these signs. On April 21st, 2021, Staff met with the Design Review Board to discuss the proposed sign code as well. While the DRB does not have a reviewing role in code amendments, the extent of changes to the sign code and their role in enforcing the code warranted their feedback on the proposed changes. The DRB expressed some concern over the inability to regulate signage content but understood the inability to do so following Reed v. Town of Gilbert. The DRB requested no substantial changes to the proposed sign code, but did request that their ability to regulate texture and extent of lettering or design projections be made clear. Staff has made a small edit to the Design Guidelines stating that these qualities are subject to design review. III. BACKGROUND/SITUATION TO BE ADDRESSED On June 18th, 2015, the Supreme Court of the United States (SCOTUS) issued a decision on Reed v. Town of Gilbert in favor of Reed that put the constitutionality of sign codes in many municipalities, including the Town of Vail, into question. The majority opinion of the Court held that all content-based sign code regulation, regulation that requires one to read the content of a sign’s speech in order to determine how it is regulated, is subject to strict scrutiny in court. Strict scrutiny for a regulation would require a government to show that the regulation both furthers a compelling government interest and is narrowly tailored to further a government interest; this level of review is usually fatal to the regulation in question. The Court also held that speaker distinctions in sign codes, regulations that apply to a specific speaker or type of speaker, may be June 1, 2021 - Page 211 of 225 Town of Vail Page 3 subject to strict scrutiny if the distinction is reflective of a content preference by the governing entity. The SCOTUS decision generally points to municipalities needing sign codes that address time, place, and manner distinctions only when it comes to sign regulation. However, the decision left a few open questions in regard to what can and can’t be safely regulated. Namely, whether on-premise vs. off-premise distinctions are content neutral, if time restrictions on signs for one-time events are content neutral, and whether the same level of scrutiny applies to content regulations for commercial signs as it does to noncommercial signs. These questions are likely to have more concrete answers as they are heard in lower courts following the Reed v. Town of Gilbert decision. Regardless, in the wake of this decision many municipalities across the United States have moved to update their sign codes to remove content distinctions in their regulations wherever possible, and to reduce on-premise vs. off-premise distinctions and commercial content regulations as much as is manageable. In 2019, Staff began to examine Vail’s sign code in detail in order to identify problematic regulations for adjustment or removal. Staff researched other municipalities that had updated their regulations and academic reviews of the Reed v. Gilbert case in order to assist in rewriting regulations. In late September and early October of 2020, three engagement meetings were held virtually in order to discuss the proposed changes to the Title 11 sign code. These meetings were not highly attended, but the proposed changes were generally well received by those in attendance. Following these meetings, the updated proposed sign code was reviewed by the Town Attorney who provided further recommendations for adjustments. Changes proposed in the current draft of the new sign code aim to remove content and speaker distinctions as much as possible, to “clean up” the code by removing redundant or irrelevant definitions and regulations, and to address concerns brought by the PEC at previous meetings. The new sign code in the form of a repeal and replace ordinance (Attachment A), the proposed Ski Base Overlay sign district map (Attachment B), and a line-by-line breakdown of the proposed changes from the existing sign code (Attachment C) are attached for review. IV. PROPOSED TEXT AMENDMENT LANGUAGE Various changes are proposed for nearly every chapter of the Title 11 sign code. Please see Attachment A for the new proposed sign code language and Attachment C for how the changes present in the proposed sign code relate to the existing sign code language. V. ROLES OF REVIEWING BODIES Order of Review: Generally, text amendment applications are reviewed by the Planning and Environmental Commission and the Commission forwards a recommendation to the June 1, 2021 - Page 212 of 225 Town of Vail Page 4 Town Council. The Town Council then reviews the text amendment application and makes 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, however it is common practice for the Design Review Board to weigh in on amendments that would have an impact on the overall appearance of the Town. 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, Prescribed Regulations 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. VI. 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 11, Sign Regulations, Vail Town Code CHAPTER 11-1, DESCRIPTION, PURPOSE, AND APPLICABILITY (in part) Section 11-1-2: Purpose: A. General Purpose: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the town of Vail and to promote the coordinated and harmonious design and placement of signs in the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of the highest quality. B. Specific Purpose: These regulations are intended to achieve the following specific purposes: June 1, 2021 - Page 213 of 225 Town of Vail Page 5 1. To describe and enable the fair and consistent enforcement of signs in the town of Vail. 2. To encourage the establishment of well designed, creative signs that enhance the unique character of Vail's village atmosphere. 3. To preserve a successful and high quality business environment that is aided by signs that identify, direct, and inform. 4. To aid in providing for the growth of an orderly, safe, beautiful, and viable community. Title 12, Zoning Regulations, Vail Town Code CHAPTER 12-3, ADMINISTRATION AND ENFORCEMENT (in part) Section 12-3-7: Amendment: A. Prescription: The regulations prescribed in this title and the boundaries of the zone districts shown on the official zoning map may be amended, or repealed by the town council in accordance with the procedures prescribed in this chapter. B. Initiation: 1. An amendment of the regulations of this title or a change in zone district boundaries may be initiated by the town council on its own motion, by the planning and environmental commission on its own motion, by petition of any resident or property owner in the town, or by the administrator. 2. A petition for amendment of the regulations or a change in zone district boundaries shall be filed on a form to be prescribed by the administrator. The petition shall include a summary of the proposed revision of the regulations, or a complete description of proposed changes in zone district boundaries and a map indicating the existing and proposed zone district boundaries. If the petition is for a change in zone district boundaries, the petition shall include a list of the owners of all properties within the boundaries of the area to be rezoned or changed, and the property adjacent thereto. The owners' list shall include the names of all owners, their mailing and street addresses, and the legal description of the property owned by each. Accompanying the list shall be stamped, addressed envelopes to each owner to be used for the mailing of the notice of hearing. The petition also shall include such additional information as prescribed by the administrator. C. Criteria And Findings: 2. Prescribed Regulations Amendment: a. Factors, Enumerated: Before acting on an application for an amendment to the regulations prescribed in this title, the planning and environmental June 1, 2021 - Page 214 of 225 Town of Vail Page 6 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; and (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 (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; and (4) The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and (5) Such other factors and criteria the planning and environmental commission and/or council deem applicable to the proposed text amendment. b. Necessary Findings: Before recommending and/or granting an approval of an application for a text amendment the planning and environmental commission and the town council shall make the following findings with respect to the requested amendment: (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. 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 sign code update furthers the general and specific purposes of the zoning regulations by making regulations more fair and consistent through the removal of most content and speaker-based distinctions. The sign code update ultimately allows for a greater degree of freedom and creativity in sign design as a result of this effort as well. While the proposed update removes much of the Town’s ability to control the actual content of a sign itself, the update generally preserves June 1, 2021 - Page 215 of 225 Town of Vail Page 7 current signage area and number allowances, thereby preventing unnecessary clutter. 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 While little of the Vail comprehensive plan speaks directly about signage, it can be inferred that this proposed update overall helps to achieve the applicable goals, objectives, and policies of the comprehensive plan. A common theme in Vail’s documents that make up the comprehensive plan speak of the need to preserve the existing character of the town. For example, a goal in the Vail Land Use Plan it states: 4.3. The ambiance of the Village is important to the identity of Vail and should be preserved. (Scale, alpine character, small town feeling, mountains, natural settings, intimate size, cosmopolitan feeling, environmental quality.) These elements of ambiance mentioned above can still be regulated in the town’s signs through size constraints, number constraints, material constraints, lighting constraints, and location constraints without having to enforce content distinctions. 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 Vail’s sign code has had one minor update, relating to Ski Base Area Signs, since 2010. This means that the majority of the town’s sign code was written well before the SCOTUS determination in Reed v. Town of Gilbert. Because of this, much of the existing sign code was written in a regulatory landscape that no longer exists. Prior to 2015, though not universally, content distinctions in sign codes were often subject to intermediate scrutiny at worst and successfully justified through purposes that claimed no favoritism for any particular viewpoint or speaker. While these purposes are still important to sign code regulations, content-based regulations now require a significantly higher burden of proof from local governments to show that these regulations are furthering a compelling government interest and constitutional. For many content-based regulations this is not feasible, if not impossible. Staff finds that this criterion has been met. June 1, 2021 - Page 216 of 225 Town of Vail Page 8 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. The proposed regulations should not significantly increase clutter in Vail via signage, and the regulations do not limit the town’s ability to regulate signage size or location. Due to the nature of these changes to the sign code largely being the removal of content restrictions, they should have no impact on other existing land use regulations and are not expected to create nonconformities with existing signs. 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. ENVIRONMENTAL IMPACTS The proposed prescribed regulation amendment does not have any identifiable environmental impacts. 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 Prescribed Regulations Amendment pursuant to Section 12-3-7, Amendment, Vail Town Code, to amend Title 11, Sign Regulations, Vail Town Code, in order to reduce content based regulations following the US Supreme Court ruling in Reed v. Town of Gilbert and accompanying changes, 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 June 1, 2021 - Page 217 of 225 Town of Vail Page 9 regulation amendment, the Community Development Department recommends the Commission makes the following findings: “Based upon a review of Section VII of the April 26, 2021 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." X. ATTACHMENTS A. Draft Ordinance B. Ski Base Area Overly Map C. Detailed Changes from the Existing Sign Code June 1, 2021 - Page 218 of 225 P L ANNI NG AND E NV I RO NM E NTAL C O M M I S S I O N April 26, 2021, 1:00 P M Virtual 75 S. F rontage Road - Vail, Colorado, 81657 1.Call to Order 1.1.Register in advance for this webinar: https://us02web.zoom.us/webinar/register/W N_QJ ybkNzgQ2eMGMYxH6F E0g After registering, you will receive a confirmation email containing information about joining the webinar. 1.2.Attendance Present: Ludwig Kurz, Karen Perez, Rollie Kjesbo, Brian Gillette, Reid Phillips, Pete Seibert, Henry Pratt Absent: None 2.Main Agenda 2.1.A Report to the Planning and Environmental Commission of an administrative action regarding a minor amendment to Special Development District (S D D) No. 6, Village I nn Plaza, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for modifications to the approved development plan and to increase site coverage, add commercial floor area and expand the plaza area, located at 68 East Meadow Drive, Unit 602 /Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (P E C21-0011) 10 min. Applicant:V V I P Commercial LLC, represented by Mauriello Planning Group Planner:Greg Roy Planner Roy introduced the project by describing the addition of 440 sq ft of floor area. This additional area was added under an existing deck. Roy explained the location of the project within the Village. He also explained that staff added several conditions. 2.2.A request for a review of a variance from Section 14-6-7, Retaining Walls, Vail Town Code, to allow for a retaining wall in excess of six (6) feet in height and a variance from Section 14-10-4 Architectural Projections, Decks Balconies, Steps, Bay W indows etc., Vail Town Code, to allow an at grade patio and hot tub within the required 7.5’ setback, pursuant to Title 12 Chapter 17, Variances, Vail Town Code, located at 2945 Manns Ranch Road Unit A/Lot 4, Block 1, Vail Village Filing 13, and setting forth details in regard thereto. (P E C21-0013) 20 min. Applicant:J ames Guy Cauthorn Trust, represented by Fieldscape Planner:J onathan Spence 1. Approval of this variance is contingent upon the applicant obtaining Town of Vail design review approval for this proposal. June 1, 2021 - Page 219 of 225 2. Prior to submitting for building permit, the applicant shall provide an executed agreement to run with the property that outlines maintenance protocol. 3. Prior to submitting for building permit, the applicant shall amend the plans to demonstrate the required 2' offset from the property line. Karen Perez joined at this point in the meeting. Planner Spence introduced the project by showing the location of the variance and the history of the proposal which involved a greater variance request. Spence showed a number of photos illustrating the existing conditions of the patio and retaining walls. The retaining wall height variance is no longer being requested after internal discussions with staff and the applicant. Staff is supportive of the setback variance. There are also some landscaping improvements proposed on the adjacent property. The adjacent property has signed off on the application. Commissioner Gillette: Expressed some concern over the impact of this proposal when the owners change. Chairman Kurz echoed this concern. Spence: Recommended that the existing owners make a written maintenance agreement. Ric Fields: Stated that a maintenance easement will be established. Gillette: Asked a question about a previous similar project. Commissioner Kjesbo: Asked a clarification question about the Town not entering into these private agreements. Spence: Stated that the Town does not enter into the agreement but can recommend that an agreement is made. Spence: Stated that the proposal will still need D RB approval. Commissioner Pratt: Expressed concern over a drawing that does not show the retaining wall 2 ft off of the property line, as was stated in the presentation. Fields: Stated that the drawings would be updated to address this in the D RB and later approvals. No Public Comment Rollie Kjesbo moved to approve with conditions. Brian Gillette seconded the motion and it passed (7-0). 2.3.A request for the review of a Development Plan, pursuant to Section 12-6I - 11, Development Plan Required, Vail Town Code, for a new housing development to be located at 129 North Frontage Road W est/Lot 3, Middle Creek Subdivision Resub Lot 1, and setting forth details in regard thereto. (P E C21-0015) 60 min. Applicant:Town of Vail, represented by Triumph Development Planner:Greg Roy June 1, 2021 - Page 220 of 225 Planner Roy explained that this was the second time this project has come before the P E C and that the applicant is not requesting approval at this meeting. Roy next gave a brief overview of the project and the existing conditions. He explained changes that have occurred since the last meeting including a reduction in building height and additional parking. The updated proposal also includes a number of tandem parking spaces. Roy showed diagrams representing the proposed changes to the roof forms. Roy also explained that staff only received the updated drawings on the previous Thursday and has not had the opportunity to review in full. Mike Foster: Explained the location of the proposed bike storage and maintenance area. He then discussed the updated parking plan. The parking has increased from 55 spaces to 83 spaces. He discussed a previous concern raised by the P E C regarding needed changes to the frontage road. From discussions with Public Works it was determined that no changes to the frontage road will be needed. Next Foster discussed the snow storage plan. Then he discussed the new roof forms and the massing of the project. He stated that a little more work is still needed on some of the elevations. W ill Hentschel: W ill started by reviewing the criteria for the Housing District. He discussed the updated architecture of the project including providing some more detail on the berm proposed for the front of the property. W ill next discussed issues raised by the D RB. Stepping the development up the hill was stated to be very difficult due to the steep slopes further back on the site. W ill discussed the architecture and character of the proposed project in relation to similar adjacent projects in detail. He next moved on to discussing the scale of the project and how it is similar to that of First Chair and Solar Vail. He discussed the building in relation to the hillside and spoke to how Middle Creek was able to develop on more of a bench. This site has consistent steep slopes behind the proposed building. He discussed the amenities such as outdoor spaces, laundry, storage, and a community room. Michael O’Connor: Started by discussing the outdoor space in detail and its functionality for residence. He discussed buffering from other properties. Michael next spoke to the vehicular and pedestrian circulation, this included the mobility management plan. He discussed how the parking spaces will be allocated and leased, the parking study conducted by Mc Dowell Engineering, a comparison between this project’s parking ratio and similar town project’s parking ratios, and the presence of a nearby bus stop and spaces for car-sharing vehicles. Michael reiterated the difficulty and impact of developing further into the steep slopes. Commissioner Perez: Asked for some clarification on the interplay between parking and snow storage proposed. These are individual requirements and so a tradeoff is not the intention of the district. Also asked a question about the assigned spaces. O’Connor: Stated that with the assigned spaces they have a parking ratio of 1.04 spaces per unit. Perez: Stated that Solar Vail had a shuttle service as part of their approval and that First Chair is already in the Village where most employees would work. Wants to make sure parking analysis is comparing apples to apples. Commissioner Phillips: Stated that First Chair is not near the Lionshead parking structure. Also wants to make sure the P E C is thinking creatively about the environmental impacts of this proposal. Expressed some concern June 1, 2021 - Page 221 of 225 with overparking and not encouraging enough multimodal transit. Being too car-centric is not forward thinking. Doesn’t make sense to shoot down housing for parking. Perez: Stated that the current issue is that the P E C can’t approve too many “floating” parking spaces. Wants a clear count of what parking is consistently available. Gillette: A mobility plan needs to justify its number of parking spaces its replacing. Not everything that tenants need can be done in the Village. The mobility management plan needs more detail on car-sharing spaces and bus transit and how these will address needs of tenants outside the Village. Kurz: The most critical component of the discussion so far appears to be the mobility management plan. Asked if the applicant is proposing full time on- site management of the parking. O’Connor: Stated that one of the units is designed so that it can be converted into an on-site management office. Also stated that the Triumph office is just across the roundabout on the other side of the freeway at this time. Gillette: W ants to see some more detailed site plans and topography on the site slopes. Stated that the east elevation needs more work. Wants to see full level staggering with the roof form. Need more detail on fenestrations and railing. Thinks that the solar panels will create snow shedding issues. Has some concern with the bike storage and the proximity of the bike maintenance to the trash area. Doesn’t like adding trellises. Asked if there was an existing trail on the site and that this should be enhanced and not lost if it is there. Reiterated needing more detail in the parking management plan. Commissioner Seibert: W ants something more to break up the north elevation. Asked a question about the electric vehicle spots and how easy they would be to add to in the future. Commissioner Pratt: W ants an explanation of the difference between the reported parking used from Middle Creek management and the reported parking used at Middle Creek from the applicant. Thinks the trash is in a better location but wants to see turning motions for a garbage truck accessing it. W ants the applicant to think more about the location of a generator. Kurz: Echoed Pratt’s desire to explain the difference in reported parking use at Middle Creek. Kjesbo: Stated that the applicant had addressed many of the issues. Thinks parking should not be limited to a specific unit. Asked about guest parking. Likes the storage units and the new location of the trash enclosure. No public comment. Kurz: Mentioned a letter comment that is part of the record. Karen Perez moved to continue to May 10, 2021. Brian Gillette seconded the motion and it passed (7-0). 2.4.A request for the review of a variance from Section 12-21-10 Development June 1, 2021 - Page 222 of 225 Restricted, Vail Town Code, in accordance with the provisions of Section 12-17-1, Variances, Vail Town Code, to allow for development in the Housing Zoning District on a slope of forty percent (40%) or greater, located at 129 North Frontage Road West/Lot 3, Middle Creek Subdivision Resub Lot 1, and setting forth details in regard thereto. (P E C21-0016) This item will be heard with P E C21-0015. Applicant:Town of Vail, represented by Triumph Development Planner:Greg Roy See minutes for P E C21-0015 Karen Perez moved to continue to May 10, 2021. Brian Gillette seconded the motion and it passed (7-0). 2.5.A request for a recommendation to the Vail Town Council for a Prescribed Regulations Amendment pursuant to Section 11-3-3, Prescribed Regulations Amendment, Vail Town Code, to amend Title 11, Sign Regulations, Vail Town Code, in order to reduce content based regulations following the US Supreme Court ruling in Reed v. Town of Gilbert and accompanying changes, and setting forth details in regard thereto. (P E C20-0032) 60 min. Applicant:Town of Vail Planner:Erik Gates Planner Gates gives a presentation on the topic including the review of the last P E C meeting, the response to those items, the D RB meeting concerns and timeline moving forward. Commissioner Pratt asked a question regarding signage at the Ski Museum. Gates responded by stating that the signage there was approved through a sign program and that this process would be preserved in the new code. No public comment. Rollie Kjesbo moved to recommend approval. Brian Gillette seconded the motion and it passed (7-0). 2.6.A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for the rezoning of approximately 2.19 acres from the Agriculture and Open Space (A OS) zoning to Housing (H), located at 1497 South Frontage Road W est and setting forth details in regard thereto. (P E C21-0009) The legal description of the parcel can be found as an attachment to the agenda item. This application has been withdrawn by the applicant. Applicant:Vail Hotel Partners LLC Laurus Corporation, represented by Mauriello Planning Group Planner:J onathan Spence 2.7.A request for a recommendation to the Vail Town Council for an amendment to the Vail Land Use Plan, pursuant to Section 8-3, Amendment Process, Vail Land Use Plan, to change the designation of an approximate 2.19 acre metes and bounds parcel from Park to High Density Residential, located at 1497 South Frontage Road West, and setting forth details in regard thereto. June 1, 2021 - Page 223 of 225 (P E C21-00010) The legal description of the parcel can be found as an attachment to the agenda item. This application has been withdrawn by the applicant. Applicant:Vail Hotel Partners LLC Laurus Corporation, represented by Mauriello Planning Group Planner:J onathan Spence 3.Approval of Minutes 3.1.April 12, 2021 P E C Results Rollie Kjesbo moved to approve. Pete Seibert seconded the motion and it passed (7-0). 4.Adjournment Rollie Kjesbo moved to adjourn. Brian Gillette seconded the motion and it passed (7-0). The applications and information about the proposals are available for public inspec tion during regular offic e hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site vis its that prec ede the public hearing in the Tow n of Vail Community Development Department. Times and order of items are approximate, subject to c hange, and c annot be relied upon to determine at w hat time the Planning and Environmental Commission w ill c onsider an item. Please c all (970) 479-2138 for additional information. Please call 711 for sign language interpretation 48 hour prior to meeting time. Community Development Department June 1, 2021 - Page 224 of 225 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 7:15 pm (estimate) June 1, 2021 - Page 225 of 225