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HomeMy WebLinkAbout2022-01-18 Agenda and Supporting Documentation Town Council Evening Meeting Agenda VAIL TO W N C O U N C IL R E G U L AR ME E TIN G Evening Agenda Virtual on Zoom 6:00 PM, January 18, 2022 Meeting to be held Virtually (access High Five Access Media livestream day of the meeting) Notes: Times of items are approximate, subject to c hange, and cannot be relied upon to determine what time C ounc il will consider an item. Public comment will be taken on each agenda item. Citizen participation offers an opportunity for citizens to express opinions or ask questions regarding town services, policies or other matters of community conc ern, and any items that are not on the agenda. Please attempt to keep c omments to three minutes; time limits established are to provide efficienc y in the c onduct of the meeting and to allow equal opportunity for everyone wishing to speak. 1.Citizen Participation (10 min.) 2.Proclamations 2.1.Proclamation No. 1, Series of 2022, One Book One Valley 2022 5 min. Presenter(s): Kim Langmaid, Mayor Action Requested of Council: Approve Proclamation No. 1, Series 2022. Background: The book “Tallgrass” by Sandra Dallas was published in 2007 won the Spur Award for Best Western Short Novel (2008), is a W I L L A Literary Award Nominee for Historical Fiction (Finalist) (2008), and a Missouri Gateway Readers Award Nominee (2010). “Tallgrass”, part thriller, part historical novel, is a riveting exploration of the darkest—and best—parts of the human heart, and is based on Camp Amache National Historic Landmark – a W orld War I I J apanese relocation center near Granada, Colorado 3.Consent Agenda (5 min.) 3.1.Contract Award with US Digital Designs for Station Alerting Equipment Action Requested of Council: Authorize the Town Manager to enter into an agreement with US Digital Designs in a form approved by the Town Attorney not to exceed $129,716. Background: The 2022 budget allocated $230,000 for the installation of station alerting systems in all three fire stations. The Phoenix G2 Station Alerting System by US Digital Design (US D D) has been selected following an evaluation of several station alerting systems. The contract with US D D will be in an amount not to exceed $129,716. The remainder of the budgeted funds have been allocated for installation of the station alerting system and necessary upgrades in the dispatch center. Staff Recommendation: Authorize the Town Manager to enter into an January 18, 2022 - Page 1 of 65 agreement, in a form approved by the Town Attorney, to procure station alerting equipment, in an amount not to exceed $129,716. 3.2.Resolution No. 2, Series 2022, a Resolution Approving a Law Enforcement Recruit Training Agreement between the Town of Vail and the City of Lakewood Action Requested of Council: Approve, approve with amendments or deny Resolution No. 2, Series 2022. Background: The I GA between the Town of Vail and The J efferson County Regional Combined Police Academy is an agreement that allows applicants hired by the TOV P D to attend the academy that J efferson County administers. This academy certifies recruits to become certified Police Officers through the Colorado Peace Officers Standards and Training (P OS T) to enable them to work as certified officers in the State of Colorado. The cost per police recruit to attend this academy is $7,000. Starting on J anuary 19th, V P D will have two recruits attending this academy to earn their P OS T certification and work for the TOV P D as certified police officer, This agreement is a five (5) year agreement between the TOV an the Combined Regional Academy, so any recruits that we may send to this academy over the next five (5) years are covered under this I GA. Staff Recommendation: Approve, approve with amendments or deny Resolution No. 2, Series 2022. 4.Town Manager Report (10 min.) 4.1.Public Health Updates 5.Presentations / Discussion 5.1.Short Term Rental Study-Part 1 60 min. Presenter(s): Andrew Knudtsen, Economic & Planning Systems I nc; Chris Cares, RRC & Associates; Alex J akubiec, Town of Vail Revenue Manager Action Requested of Council: Please provide feedback to staff regarding the first phase of short term rental study. Background: The purpose of this memorandum is to summarize the information gathered by RRC Associates and Economic & Planning Systems I nc. (E P S) in the first phase of a comprehensive study of the Vail short-term rental (S TR) market and provide an opportunity for Council to consider current and future regulations of S TRs. Staff Recommendation: Please provide feedback to staff regarding the first phase of short term rental study. 6.Action Items 6.1.Timber Ridge Redevelopment process.20 min. Presenter(s): Scott Robson, Town Manager and Kathleen Halloran Finance Director Action Requested of Council: Formal action with a vote on process for selecting a developer (RF Q or Sole Source). Background: Please see attached memorandum. Staff Recommendation: Please provide a formal action with justification for the process of selecting a developer for the redevelopment of Timber Ridge Apartments. January 18, 2022 - Page 2 of 65 7.Adjournment 7.1.Adjournment 7:50 pm (estimate) Meeting agendas and materials can be acc es s ed prior to meeting day on the Town of Vail webs ite www.vailgov.com. All town c ouncil meetings will be streamed live by High F ive Ac cess Media and available for public viewing as the meeting is happening. T he meeting videos are als o posted to High F ive Ac cess Media website the week following meeting day, www.highfivemedia.org. P leas e c all 970-479-2136 for additional information. S ign language interpretation is available upon reques t with 48 hour notification dial 711. January 18, 2022 - Page 3 of 65 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: Proclamation No. 1, Series of 2022, One B ook One Valley 2022 P RE S E NT E R(S ): K im L angmaid, Mayor AC T IO N RE Q UE S T E D O F C O UNC I L: A pprove P roclamation No. 1, S eries 2022. B AC K G RO UND: The book “Tallgrass” by S andra Dallas was published in 2007 won the Spur Award for B est Western S hort Novel (2008), is a W I L L A L iterary Award Nominee for Historical Fiction (Finalist) (2008), and a Missouri Gateway Readers Award Nominee (2010). “Tallgrass”, part thriller, part historical novel, is a riveting exploration of the darkest—and best—parts of the human heart, and is based on Camp A mache National Historic L andmark – a World War I I J apanese relocation center near Granada, Colorado AT TAC H ME N TS: Description Proclamation No. 1 Series of 2022 January 18, 2022 - Page 4 of 65 PROCLAMATION NO. 1, SERIES OF 2022 ONE BOOK ONE VALLEY, 2022 WHEREAS, Community Read programs have united and uplifted hundreds of cities and municipalities throughout the United States of America; WHEREAS, the book “Tallgrass” by Sandra Dallas was published in 2007 and is available in paperback, large print, audio CD, eBook and eAudiobook formats. “Tallgrass”, part thriller, part historical novel, is a riveting exploration of the darkest—and best—parts of the human heart, and is based on Camp Amache National Historic Landmark – a World War II Japanese relocation center near Granada, Colorado; WHEREAS, this Eagle Valley Community Read is the 11th Year of the One Book One Valley initiative. “New this year” will be a juvenile companion title, “Red Berries, White Clouds, Blue Sky”, also by Sandra Dallas, which is available in paperback, eBook and eAudiobook formats. “After Pearl Harbor is bombed by the Japanese, twelve-year-old Tomi and her Japanese-American family are split up and forced to leave their California home to live in internment camps in New Mexico and Colorado"; WHEREAS, this Eagle Valley Community Read will feature multiple book discussions using both titles in venues around the valley; a showing of the documentary, “Children of the Camps” which captures the experiences of six Americans of Japanese ancestry who were confined as innocent children to internment camps by the U.S. government during World War II; a program on Asian culture as related to history; a living history presentation featuring Franklin D. Roosevelt; and, a special Guest Appearance by the author next spring; WHEREAS, the Vail Public Library, in collaboration with the Bookworm of Edwards, Colorado Mountain College, Battle Mountain High School, Eagle Valley High School and Vail Mountain School have resolved to bring this valley-wide Community Read program to the citizens of Eagle County; and WHEREAS, the One Book One Valley initiative will encourage literacy and shared enjoyment of reading throughout Eagle County. NOW, THEREFORE, the Vail Town Council do hereby proclaim the One Book One Valley initiative and officially announce and promote the novel “Tallgrass” to all Eagle County residents for their enjoyment and the enjoyment of all. Dated this 18th day of January 2022. Vail Town Council Attest: Kim Langmaid, Mayor Tammy Nagel, Town Clerk January 18, 2022 - Page 5 of 65 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 Award with US Digital Designs for Station A lerting E quipment AC T IO N RE Q UE S T E D O F C O UNC I L: A uthorize the Town Manager to enter into an agreement with US Digital Designs in a form approved by the Town A ttorney not to exceed $129,716. B AC K G RO UND: The 2022 budget allocated $230,000 for the installation of station alerting systems in all three fire stations. T he P hoenix G2 S tation Alerting System by US Digital Design (US D D) has been selected following an evaluation of several station alerting systems. The contract with US D D will be in an amount not to exceed $129,716. The remainder of the budgeted funds have been allocated for installation of the station alerting system and necessary upgrades in the dispatch center. S TAF F RE C O M M E ND AT IO N: A uthorize the Town Manager to enter into an agreement, in a form approved by the Town A ttorney, to procure station alerting equipment, in an amount not to exceed $129,716. AT TAC H ME N TS: Description Staff memo re Station Alerting Contract January 18, 2022 - Page 6 of 65 To: Vail Town Council From: Ryan Ocepek, Division Chief Date: January 18, 2022 Subject: Fire Station Alerting Systems I. Background In the 2022 budget, Town Council approved $129,716 to purchase station alerting systems for all three fire stations. Station alerting systems are designed to reduce call processing times by automatically alerting firefighters faster and more efficiently to calls for service. VFES fire stations are currently alerted by a dispatcher at Vail Public Safety Communications Center (VPSCC) utilizing the 800 MHz radio-based system. The dispatcher receives a 911 call, builds the call on the CAD system, and then alerts a VFES fire station or apparatus of a call for service. During this process, the dispatcher is unable to handle other radio traffic or phone calls. Reducing response times is consistent with the Town Council adopted response performance measures and is identified as an action item in the 2021 VFES Strategic Plan. Because the dispatch center is a shared resource with all Eagle County fire/EMS agencies, a committee was formed to evaluate station alerting systems. The committee consisted of representatives from VPSCC, VFES, Eagle River Fire Protection District, Greater Eagle Fire Protection District, Gypsum Fire Protection District, and Eagle County Paramedic Services. The committee evaluated three station alerting vendors. Each system was evaluated for compatibility with existing VPSCC equipment, reliability, installation, maintenance, and pricing. The committee toured several dispatch centers as well as fire/EMS stations using these systems. Based upon this evaluation, Phoenix G2 Station Alerting System by US Digital Designs (USDD), was unanimously selected as best meeting the needs of all agencies while providing the best value. The contract with USDD will be in the amount of $129,716 which will be to purchase all equipment that is necessary for the station alerting systems for all three VFES fire stations. The total approved budget amount for this project is $230,000.00. This includes the installation and dispatch upgrade requirements (shared cost with other county agencies). Therefore, the remaining balance (minus the G2 cost) will be used to pay for the installation and dispatch fees. January 18, 2022 - Page 7 of 65 Town of Vail Page 2 II. Staff Recommendation Authorize the Town Manager to enter into an agreement, in a form approved by the Town Attorney, to procure station alerting equipment, in an amount not to exceed $129,716. Sample motion: I move to approve on consent, authorization for the Town Manager to enter into an agreement, in a form approved by the Town Attorney, for the procurement of US Digital Design, Phoenix G2 station alerting equipment in an amount not to exceed $129,716. January 18, 2022 - Page 8 of 65 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Resolution No. 2, Series 2022, a Resolution A pproving a L aw Enforcement Recruit Training Agreement between the Town of Vail and the City of L akewood AC T IO N RE Q UE S T E D O F C O UNC I L: A pprove, approve with amendments or deny Resolution No. 2, S eries 2022. B AC K G RO UND: The I G A between the Town of Vail and T he J efferson County Regional Combined P olice A cademy is an agreement that allows applicants hired by the TO V P D to attend the academy that J efferson County administers. T his academy certifies recruits to become certified Police Officers through the Colorado Peace Officers S tandards and Training (P O S T) to enable them to work as certified officers in the State of Colorado. The cost per police recruit to attend this academy is $7,000. S tarting on J anuary 19th, V P D will have two recruits attending this academy to earn their P O S T certification and work for the TO V P D as certified police officer, T his agreement is a five (5) year agreement between the TO V an the Combined Regional Academy, so any recruits that we may send to this academy over the next five (5) years are covered under this I G A. S TAF F RE C O M M E ND AT IO N: A pprove, approve with amendments or deny Resolution No. 2, S eries 2022. AT TAC H ME N TS: Description Resolution No. 2, Series 2022 Agreement January 18, 2022 - Page 9 of 65 RESOLUTION NO. 2 Series of 2022 A RESOLUTION APPROVING A LAW ENFORCEMENT RECRUIT TRAINING AGREEMENT BETWEEN THE TOWN OF VAIL AND THE CITY OF LAKEWOOD WHEREAS, the Town and Lakewood wish to enter an agreement for the Vail Police recruits to attend the Jefferson County sheriff’s Office and Lakewood Police Department’s Combined Regional Academy, as more particularly set for in Exhibit A, attached hereto and incorporated herein by this reference (the “IGA”) NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council hereby approves the IGA in substantially the form 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 January 2022. _________________________ Kim Langmaid, Town Mayor ATTEST: _____________________________ Tammy Nagel, Town Clerk January 18, 2022 - Page 10 of 65 COL Contract #22-05016 LAW ENFORCEMENT RECRUIT TRAINING AGREEMENT This LAW ENFORCEMENT RECRUIT TRAINING AGREEMENT (the “Agreement”) is made and entered into this _20th day of _January , 2022 (the “Effective Date”), by and between the CITY OF LAKEWOOD, a Colorado home rule municipal corporation whose principal business address is 480 South Allison Parkway, Lakewood, Colorado 80226 (“Lakewood”), on behalf of itself and Jefferson County, Colorado (“Jefferson County”), and the TOWN OF VAIL, with offices at 75 South Frontage Road West, Vail, Colorado 81657 (“Agency”). WHEREAS, Lakewood and Jefferson County conduct a joint academy for the training of law enforcement officers known as the Jefferson County Sheriff’s Office and Lakewood Police Department’s Combined Regional Academy (the “Academy”); and WHEREAS, Agency is desirous of having its law enforcement recruits (“Recruits”) attend Academy classes during the term of this Agreement, with the number of such Recruits attending each Academy, and the associated costs therefor, to be agreed upon by the parties as set forth in Exhibit A attached hereto; and WHEREAS, Article XIV, Section 18 of the Colorado Constitution and Part 2, Article 1, Title 29, C.R.S., encourage and authorize intergovernmental agreements among government entities to cooperate and contract with one another to provide any function, service or facility lawfully authorized to each. NOW, THEREFORE, for the mutual covenants and promises and other valuable consideration, the receipt and adequacy of which is expressly acknowledged, the parties hereby agree as follows: 1. Purpose. The purpose of this Agreement is to provide training of the Recruits at the Academy. 2. Term of Agreement. This Agreement shall have a term of five (5) years from the Effective Date. The provisions herein relating to insurance and the covenant not to sue shall survive the termination or expiration of this Agreement. 3. Description of Training. The Academy shall provide classroom instruction as well as all testing and evaluation of the Recruits as required by State of Colorado Peace Officer Standards and Training including, but not limited to, firearms training, law enforcement driving and arrest control. 4. Number of Recruits, Payment. Agency and Lakewood will agree on the number of Agency Recruits, if any, who will attend each Academy. Not later than fifteen (15) days prior to the commencement of an Academy, Agency shall pay to Lakewood the amount set forth in Exhibit A for the number of Agency Recruits that will attend. The parties may revise Exhibit A, as described in section 9(a)(ii) below, not less than thirty (30) days prior to an Academy’s start date. 5. Termination. Either party may terminate this Agreement by providing to the non-terminating party, not less than fifteen (15) days prior to the date of termination, written notice of termination including the effective date thereof. 6. Independent Contractor Status. Lakewood, Jefferson County and Agency are all governmental entities (each, an “Entity”). No officer or employee of any Entity shall be considered or deemed an officer or employee of any other Entity for any purpose, including January 18, 2022 - Page 11 of 65 COL Contract #22-05016 Page 2 of 5 worker’s compensation insurance benefits and any other benefit. The Recruits are and shall remain employees of Agency and as such are not eligible for any salary or benefits from Lakewood or Jefferson County. 7. Insurance. a. Agency shall continuously maintain statutory Worker’s Compensation employer’s liability coverage. Agency is responsible for any deductible losses under such policies or payment of any retention amounts under a self-insurance program. A certificate of insurance acceptable to Lakewood must be provided upon execution of this Agreement unless the parties arrange otherwise. b. Both parties shall maintain general and auto liability, law enforcement liability and public officials’ liability insurance, whether through insurance policy/ies, self-insurance, or a combination thereof. Agency agrees to provide a certificate of insurance to Lakewood stating that notice of any cancellation of such insurance will be provided to Lakewood not less than thirty (30) days prior to any such cancellation. All cancellation notices shall be sent to the City of Lakewood, Risk Management Division. 8. Covenant not to sue. Agency, in connection with the training of its Recruits as provided herein, hereby agrees to release, waive and discharge, and covenants not to sue, Lakewood and Jefferson County, and their respective officers, employees and insurers, from and against any and all claims, damages, liabilities, demands and court awards of any kind whatsoever, which arise from any acts or omissions of any Recruit while being trained pursuant to this Agreement or thereafter, that are in any manner connected with any Recruit, if such injury, loss or damage is or is claimed to be caused in whole or in part by the act, omission or other fault of any Recruit or the training of Recruits hereunder. The parties understand, are relying upon and do not waive or intend to waive by any provision of this Agreement the monetary limitations or any other rights, immunities or 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 or employees. 9. General Provisions. a. Integration, Amendment of Exhibit. i. This Agreement, including Exhibit A, which is incorporated herein by reference, contains the entire understanding among the parties, and no statement, promise or inducement made by either party that is not contained herein shall be valid or binding. ii. This Agreement shall not be enlarged, modified, altered or extended, except in writing, signed by the parties and endorsed herein. Notwithstanding the foregoing, the parties agree that Exhibit A may be revised from time to time in a writing signed by the respective heads of Lakewood’s and Agency’s law enforcement departments/offices, and this Agreement shall thereafter be deemed amended thereby without further action of the parties. iii. This Agreement shall inure to the benefit of and be binding upon Lakewood and Agency and their respective successors and assigns. b. Assignment. This Agreement shall not be assigned by either party. January 18, 2022 - Page 12 of 65 COL Contract #22-05016 Page 3 of 5 c. Severability. If any part of this Agreement is held by a court of competent jurisdiction to be illegal or in conflict with any law of the State of Colorado, the validity of the remaining parts shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if this Agreement did not contain the particular part held to be invalid. d. Venue. Venue for any and all legal actions regarding the transaction covered herein shall lie in the District Court in and for Jefferson County, Colorado, and this transaction shall be governed by the laws of the State of Colorado. e. Authority. This instrument shall not constitute an agreement until accepted, in writing by the duly authorized representatives of Lakewood and Agency. f. Current Expenditures. Financial obligations of the parties after the current fiscal year are contingent on funds for that purpose being appropriated, budgeted and otherwise made available by each party’s governing body. The parties’ obligations under the Agreement shall be from year-to-year only and shall not constitute a multiple-fiscal year direct or indirect debt or other financial obligation of either party within the meaning of Article X, Section 20, of the Colorado Constitution. g. Counterparts; Electronic Disposition. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all such counterparts taken together shall be deemed to constitute one and the same instrument. The parties acknowledge and agree that the original of this Agreement, including the signature page, may be scanned and stored in a computer database or similar device, and that any printout or other output readable by sight, the reproduction of which is shown to accurately reproduce the original of this Agreement, may be used for any purpose as if it were the original, including proof of the content of the original writing. [Remainder of page intentionally blank – signatures follow.] January 18, 2022 - Page 13 of 65 COL Contract #22-05016 Page 4 of 5 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. CITY OF LAKEWOOD ____________________________________ Daniel J. McCasky, Chief of Police ATTEST: ____________________________________ Bruce Roome, City Clerk APPROVED AS TO LEGAL FORM ____________________________________ Patrick Freeman, Sr. Asst. City Attorney Office of the City Attorney TOWN OF VAIL Signature ATTEST: Signature Printed Name & Title APPROVED AS TO LEGAL FORM: Signature Printed Name & Title January 18, 2022 - Page 14 of 65 COL Contract #22-05016 Page 5 of 5 EXHIBIT A Number of Agency Recruits and Payment Amount Regional Academy 22-1 January 20, 2022 – June 10, 2022 Academy commencement date: January 20, 2022 Number of Agency Recruits attending: Two (2) Amount per Agency Recruit payable to Lakewood: $7,000 Total amount payable from Agency to Lakewood for Recruit training: $14,000 January 18, 2022 - Page 15 of 65 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: Public Health Updates January 18, 2022 - Page 16 of 65 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: Short Term Rental Study-P art 1 P RE S E NT E R(S ): Andrew Knudtsen, E conomic & Planning Systems I nc; Chris Cares, R R C & A ssociates; A lex J akubiec, Town of Vail Revenue Manager AC T IO N RE Q UE S T E D O F C O UNC I L: Please provide feedback to staff regarding the first phase of short term rental study. B AC K G RO UND: The purpose of this memorandum is to summarize the information gathered by R R C Associates and Economic & P lanning S ystems I nc. (E P S) in the first phase of a comprehensive study of the Vail short-term rental (S T R) market and provide an opportunity for Council to consider current and future regulations of S T Rs. S TAF F RE C O M M E ND AT IO N: Please provide feedback to staff regarding the first phase of short term rental study. AT TAC H ME N TS: Description 011822 Short-tern rental study Part 1 011822 Short-tern rental study P P- Part 1 public input January 18, 2022 - Page 17 of 65 __________________________________________________________________________ Memorandum TO: Town Council FROM: Finance Department DATE: January 18, 2022 SUBJECT: Short-Term Rental Study I. SUMMARY The purpose of this memo is to summarize the information gathered by RRC Associates and Economic & Planning Systems Inc. (EPS) in the first phase of a comprehensive study of the Vail short-term rental (STR) market and provide an opportunity for Council to consider current and future regulations of STRs. Staff has included updates on the current STR regulation enforcement and information about additional regulatory options and emerging trends in peer communities. Based on Council’s feedback, staff will return with additional information and recommendations for potential policy changes. II. BACKGROUND The Vacation Rental Industry Short-term rentals have long been a vital part of the resort landscape in Vail, with many primary and secondary homeowners utilizing their properties as revenue-generating assets. A survey of Vail residents conducted in 2017 indicated that 69% of respondents felt that STRs offer community benefits, by allowing Vail to provide diverse lodging options for guests, increase the tax base, and provide additional income for homeowners. In that same survey though, 61% of respondents listed the effect of short-term rentals on long-term housing as a priority concern and supported regulation. A short-term rental is defined as a residential dwelling rented for transient lodging for a period not to exceed 30 consecutive days. Short-term rentals fall into several categories including, rentals of single bedrooms within a residential unit, rentals of entire units, fractional units rented to non-owners, single-family homes, multifamily units, and condos with 24/7 front desk service. While some property owners may rent their property occasionally to help cover the cost of ownership, the reality is many STRs function like a commercial accommodation service business in residential structures and neighborhoods. As a result, Vail, along with many other January 18, 2022 - Page 18 of 65 - 2 - communities, faces increasing impacts and negative externalities from this relatively new land use. These impacts are not easily mitigated, and costs are not easily recovered with existing regulations and fees. With the recent impacts of the Coronavirus pandemic on increased property prices and recreation habits in mountain towns, there is growing concern over the impingement of STR units on long-term housing availability. Numerous peer communities in the region have enacted stricter regulations, higher fees, and higher taxes on STRs in recent months. Town of Vail’s Current Regulations Recognizing that STRs are an important lodging option while also seeking to preserve neighborhood character and lodging standards; the Town of Vail has taken a balanced approach towards STR regulations. Regulations first enacted in 2017 sought to find a middle ground between monitoring and measuring STRs and encouraging a business-friendly environment. Since that time, the number of STRs in town has increased approximately 9.8%. In 2017 Vail had 2,352 STRs on record compared to an estimated 2,583 (35% of residential properties) in 2021. Town of Vail STR registration fees of $5 and $10 for professionally managed STRs, and $150 for unmanaged units are lower than many of the fees charged in other mountain resort communities. Revenue from these fees has averaged $76,868 annually over the last three years, well below the cost of labor and software dedicated to monitoring and enforcing STR regulations. Vail does not restrict the location or quantity of STRs within the community through zoning or other means. Registrations are obtained via an online application and notarized affidavit of the owner or property manager. This is a moderate approach toward enforcing life safety standards and good neighbor guidelines required by code. The town utilizes a third-party, 24/7 hotline to direct incoming complaints to representatives of each property. Complaints received from the public are relatively few, with a total of 62 received in 2021. Of these, only 21 were found to be actual violations of the town code. About half were resolved by the property representative in the allotted time while 9 resulted in a fine issuance. In 2021, 25 STR fines were issued for a total of $14,500. Violations of the STR code are punishable by escalating fines starting at $500. If a property receives a 4th violation in a 12-month period, their STR registration is suspended for 2 years. To date, no STR unit has incurred a suspension. Peer Mountain Communities Owing to their unique nature, destination mountain communities are impacted uniquely and more critically by STRs. Mountain communities like Vail have a finite amount of land and limited housing stock. At the same time, they have high tourist demand, limited labor forces, limited transit, and strong community concern for the environment, character, and development of these areas. The use of land within these limited areas has a direct effect on local and tourist experiences as well as the local economy. Consideration of STRs as a land-use should include how the January 18, 2022 - Page 19 of 65 - 3 - proportion of STRs to other uses supports larger community needs and objectives. Numerous peer communities to Vail have determined that STRs have thrown off the balance of land use in their areas to a point that is no longer sustainable. To rebalance the proportions of commercial and non-commercial uses, residents and non- residents; several trends have emerged in new STR regulations. Increasingly, communities are limiting the total number of STRs allowed in their jurisdictions, citing a lack of long-term housing for full-time residents reaching crisis levels. Vail’s peer communities are significantly increasing STR fees and imposing limitations by geographic areas as well as by primary residence vs. secondary residence. As part of this STR study, detailed information on other communities’ regulations has been included in Exhibit A. Exhibit B shows a list of recent ballot initiatives aimed at addressing housing and STRs in Colorado. III. DISCUSSION The STR study indicates that the Town of Vail has approximately 7,359 residential units, with approximately 35% or an estimated 2,583 units used as STRs. Approximately 28% of the housing stock is listed as a primary residence, which has declined slightly from 29% in 2017. Future iterations of the STR study will determine what proportion of STRs are primary vs. secondary homes. STRs represent a large business segment within the Vail community which has grown significantly in recent years. There are currently 75 licensed property management businesses in Vail, 40 of which were licensed in the last 3 years. Sales tax revenue from STRs increased 25.9% from 2017 to 2020. Tax collections in 2021 were much higher, primarily due to changes in tax filing requirements. The most recent data from 2021 shows STRs generated 10.9% of all taxable revenue in Vail through October across all sectors and 31.9% of all taxable revenue within the lodging industry. This equates to $73.0M in taxable sales through October 2021, certainly a significant business sector that should be assessed to ensure it is operating within parameters set by local code and community expectations. It is estimated that the average STR in town will have earned $34,922 in revenue in 2021. This is an attractive revenue stream for investors, which places upward pressure on property values. This study also aims to examine the interplay of STRs and long-term housing availability through analysis of available data. In the next version of the study, information will be included showing the assessed home values of STR properties. As identified by the Vail Housing Authority, affordable and diverse housing is integral to a sustainable year-round economy. Long-term housing availability is directly linked to the supply and cost of labor to support local businesses. STRs also increase available lodging beds which creates a significant increase in demand for services. STR property owners and managers increase demand for construction and service sector industries that support the operation and maintenance of STR units. Competition for these services further drives up costs associated with long-term housing. STR occupants create increased demand for personal services. At the same time, environmental concerns, zoning regulations, and constrained commercial real estate in mountain towns limit the January 18, 2022 - Page 20 of 65 - 4 - amount by which the supply of these services can be increased. This all adds up to a challenging environment for these jurisdictions to create balanced and healthy communities. Currently, the town uses a two-tier fee schedule dependent on location for licensing businesses. Resort adjacent areas which can handle higher densities and intensity of usages are defined as “Zone 1”. This area includes the south side of I-70, between Cascade Village to the west and Manor Vail to the east (essentially Vail Village and Lionshead). All other areas are defined as “Zone 2”. A map of these zones is included in the study on slide 9. This study has utilized these geographic boundaries to help characterize STR properties that are more likely to take away from the available long-term housing stock. Staff recommends that STRs located in Zone 2 are considered more likely to impact long-term housing, based on property prices and density. Increasingly, new STRs in Vail are more likely to be located in Zone 2. Prior to 2020, 33% of existing STRs were in Zone 2. Since January 2020, 55% of new STR registrations have been in the neighborhoods of West Vail, Sandstone, and East Vail. Council may also wish to consider other property characteristics when assessing STR impacts to housing stock, such as: • Bedroom counts • Single-family vs. multifamily • Properties with 24/7 front desks (condotels) • Fractional properties Attached is the power point slide presentation of “Part 1” of the STR study results for more details. The focus of the first work session is to document the Vail context, relative to STR activity. “Part 2” will be presented to Town Council at the Feb 1st meeting, and will include potential actions, based on the direction provided by Council from the first session. IV. ACTION REQUESTED OF COUNCIL Please provide feedback to staff regarding this first phase of data on short-term rentals in Vail. As we prepare for the second presentation on February 1st, staff would like Council to consider the following questions: 1. What direction would Council like to set, as it relates to STRs, specifically: a. Focus on ways to limit STR activity and associated impacts; or b. Consider an STR fee that generates a revenue stream to fund TOV housing programs 2. What are the primary concerns for any potential new STR regulation? a. Impacts on affordable housing? b. Public health and safety? c. Neighborhood impacts? d. Land use impacts, density? e. Impacts to services and infrastructure (traffic, parking, transit, fire services, police services) 3. What additional information would be useful in future discussions? January 18, 2022 - Page 21 of 65 Short‐Term Rental Ordinance Matrix EXHIBIT ACityConcentration LimitZoning LimitationsFees Recent UpdatesVailNoNo‐ Deed restricted prohibited.Tiered fee structure‐‐ $150 per unit for unmanaged properties, $10 per unit for managed units, $5 per unit for condotel managed units (24x7 front desk)AspenNoNoAnnual business license fee of $150. Vacation Rental Permit is free.Moratorium on new STRs and constrcution relating to expanding the homes squarefootage to September 30th, 2022.AvonNoNo ‐ zoning map overlay with certain areas of town allowing STRs.$75 annual fee.4% sales tax, in addition to the 4% accommodation tax.Breckenridge2,200 total limit. Existing registrations are allowed to renew licenses. No new licenses to be issued until total number is under the limit. None‐ unless deed restricted workforce housing, then prohibitedBOLT: $75 ‐ $175 annually/Admin Fee: $25‐$150 annually2,200 cap on dispersed STRs. Fee per bedroom of $400 for individually deeded units, not lodges or hotels that are owned by one entity. In 2023 the fee increases to $756 per bedroom.Crested Butte30% of the total number of free market residential units in town located in the permitted zone districts.  Yes.  Restricted to permitted zones.  Not allowed in deed restricted housing or  accessory dwelling units that are required to be long term rentals.Unlimited Vacation Rental License fee: $750/year.  Primary Residence License fee: $200/year with a maximum of 60 nights of rental per year12‐month moratorium on STRs for non‐primary residence STRs- Began July 2021.DurangoYes. Limits are included by zone, block face, or by development depending on the location.Yes. Permitted in 2 of 6 single‐family zones and in all 3 mixed use zones. Recent code amendments have eliminated the use from multifamily zones.$750 first time and annual business license fees of approx. $100Code Amendments (adopted Dec 2020): 1.We further restricted the zones where vacaƟon rentals can be permitted. New permits can no longer be issued inmultifamily zones. 2.We now require caps on the total number of vacaƟon rentals that can be permitted in mixed‐use buildings or properties located within mixed‐use zones. This is not a zone‐specific cap… it instead applies to buildings or developments that contain residential dwellings. This prevents mixed use building with residential units fromtransitioning to de‐facto hotel uses. 3.Minor changes to parking regulaƟons, adverƟsement requirements, etc.Lodger’s Tax:An April 2021 ballot initiative authorized the City to increase the Lodger’s tax rate from 2% to 5.25%. This is not specific to short‐term rentals.Grand LakeNoNo$600 AnnuallyGrand CountyNoNo$25 per occupant (10 total occupancy STR= $250 fee).Jackson Hole NoApproved lodging overlay or resort disctrict.$107Placer County (North Lake Tahoe)No (Per Tahoe Regional Planning Agency code, short‐term vacation rentals cannot exceed four per parcel.)NoProfessionally Managed: permit‐ $105, fire inspection‐ $95.18, Total Fee‐ $200.18 Privately Managed: permit‐ $179, fire inspection‐ $158.13, total fee‐ $337.13.Moratorium on new STRs until March 31st 2022January 18, 2022 - Page 22 of 65 City Concentration Limit Zoning Limitations Fees Recent UpdatesSteamboat SpringsNo No$50 Sales Tax Fee (one time); $500 VHR permit fee, $75 annual renewal feeMoratorium on Vacation Home Rentals‐ " Single‐Family home or duplex unit; the entire unit is rented". Moratorium currently in place of VHRs, expiring January 31st, 2022. Summit CountyNoZoning regulations are included in Section 3821 of the Summit County Land Use and Development Code, and include requirements for permitting, responsible agent, health & safety standards, parking, trash, noise, pets, signage, advertising, and complaints and enforcement.  Not permitted in deed restricted workforce housing units, and in certain PUDs that expressly prohibit the use.Initial permit ‐ $150; Annual renewal ‐ $75Administrative Conditional Use Permit (CUP) required for higher occupancy and parking requests.Initial CUP fee ‐ $350 (this is the full fee charged; not charged both the STR permit fee and the CUP fee); Annual CUP renewal ‐ $7590 day moratorium on new licenses stating in September 2021 ‐ some exempted areas. "Neighborhood" and "resort" zones. Resort Zone STR licenses will have no restrictions on rental nights. Neighborhood license type I for primary residence will allow owner to rent spare rooms unrestricted and the entire property while on vacation ‐ up to 60 daysSouth Lake TahoeNoCurrently new permits in residential areas are not allowed.Permit fee based on occupants. 1‐4 $200. 5‐8 $350. 9‐12 $650. 12 or more $850. Fractionals $19.23 to $850. New Vacation Home Rental Permits are not allowed in residential areas. Truckee (North Lake Tahoe)No No $481 per year, as of November 1st, 2021.Moratorium on new STRs until June 15th 2022. They have an Town Staff appointed advisory committee  of community memembers that will provide recommentaions toe Town Countil in early 2022.January 18, 2022 - Page 23 of 65 Housing & STR Ballot Questions November 2021EXHIBIT BAvonA 2% Short Term Rental Tax to Fund Community Housing P 71%/29%BasaltBond issue for affordable housing, green initiatives, and downtown improvements P 73%/27% $17 million, $6 million for housingCrested ButteIncrease excise tax on STRs from 5% to 7.5% P 75%/25%Ail revenues from this tax are dedicated to affordable housing. Included bonding authority on entire revenue from taxCrested Butte$2,500/yr. tax on residential properties not used as a primary residence combinedwith 0.5% sales tax all to fund affordable housingF 43%/57%Frisco*Citizen petition to ban STR's in single family homes N/A N/A *Failed to get enough signatures to make ballotLeadvilleAccommodation tax of 4.92% on STRs and hotels/lodges. Dedicated funding for community housing programs.P 70%/30%Ouray15% excise tax on the amount charged for STRs.  Revenue will be split between housing programs and building new wastewater and water treatment plants.P 57%/43%Summit CountyA continuation of .6% sales tax to fund workforce housing P 71%/29%TellurideCap STR Licenses at 400 which would have cut the number of short‐term rental licenses in half. Licenses to be determined by lottery.F 41%/59% Primary residences and STR "required" units exemptTellurideCap STR Licenses at CURRENT level for 2 years and double the STR License fees with increase dedicated to affordable housing fund.P 55%/45%New STR license fees (based on unit type/size) will now be $132 for Lodging establishments and room rentals and $330 + $44/sleeping room for Accommodation units and Rental Houses.Vail.5% sales tax increase dedicated to housing projects and initiatives P 54%/46%Passed/ FailedBrief Summary Approx. For/ Against CommentsJurisdictionJanuary 18, 2022 - Page 24 of 65 Economic & Planning Systems, Inc. The Economics of Land Use SHORT TERM RENTAL STUDY Town Council Work Session January 18 2022 January 18, 2022 - Page 25 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |1 ABOUT EPS EXPERTISE January 18, 2022 - Page 26 of 65 RRC ASSOCIATES •Market research and planning consulting firm •Specialization in mountain resort communities •Based in Boulder •Founded in 1983, 16 staff •Expertise •Affordable housing analysis •Parks and recreation research •Land use / comprehensive plan research •Economic & fiscal impact evaluation •Community opinion surveys •Visitor profile research •Tourism market assessments •Tourism branding research •Special events research •Clients •Local governments (counties, cities, downtown districts) •DMOs / CVBs / Chambers •Ski area operators & trade associations •Airports & air service development organizations 2January 18, 2022 - Page 27 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |3 PROJECT OVERVIEW Project Elements Characterize Town lodging units - Dispersed Short Term Rentals (STRs) and Non-Dispersed Units –Build on 2017 work –Look at registered STRs, hotel/lodge units, second homeownership, and other relevant factors Document housing impacts generated by guest expenditure Estimate revenues (sources of funds) Consider tools to mitigate impacts (uses of funds) Project Goal Consider best way to address STR impacts –Focus on ways to limit STR activity and associated impacts –Consider STR fee that generates revenue stream to fund TOV housing programs Project Process 1.Finish Context (80% complete) 2.Construct expenditure model (20% complete) 3.Council worksessions on January 18 and February 1, followed by two readings of an ordinanceJanuary 18, 2022 - Page 28 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |4 DISPERSED SHORT-TERM RENTAL (DSTR) DEFINITION The current legal definition for Short-Term Rentals is: “SHORT-TERM RENTAL PROPERTY (STR): A residential dwelling unit, or any room therein, available for lease for a term of less than thirty (30) consecutive days, but excluding bed and breakfasts and accommodation units.” (Ord. 19(2018) §1) January 18, 2022 - Page 29 of 65 CHARACTERIZING STRS IN VAIL INITIAL DATA ANALYSIS January 18, 2022 - Page 30 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |6 Residential –Second Homes: 5,291Condotels: 1,458 VAIL INVENTORY ANALYSIS Residential –Primary Homes: 2,068 Total Residential: 7,359 Total Lodging: 2,947 *2019 Census Housing Units Estimate: 7,475 (+/-223) Total: 8,848 Hotels/ Lodges: 1,489 Registered STRs: 2,454 *2,583 Estimated *There are 929 Town Owned/Deed Restricted Units (+23 in Edwards) January 18, 2022 - Page 31 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |7 REGISTERED STRS MAILING ADDRESS LOCATIONS January 18, 2022 - Page 32 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |8 TOV REGISTERED STR UNITS BY LOCATION AND OTHER DESCRIPTORS STR data at the parcel level has been mapped to group subareas (neighborhoods) and summarize the data across various factors. For this discussion, the two primary geographic groupings are breakdowns provided by the Town: •A Zone 1/Zone 2 segmentation that divides the Town into two areas •The Village and Lionshead represent the bulk of Zone 1 •The Town has also been segmented into 6 subareas that provide a finer level of geography for analytical purposes. •These six areas include: Vail Village, Lionshead, East Vail, Sandstone, West Vail and Cascade Village January 18, 2022 - Page 33 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |9 STR REGISTRATIONS BY ZONE Zone 1 includes more units than Zone 2 (+596) , and as illustrated more of the units are registered at the present time (51% versus 18% in Zone 2). Overall, about 31% of units in the Town are registered as STRs at the present time. January 18, 2022 - Page 34 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |10 ZONE 1 ENLARGED January 18, 2022 - Page 35 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |11 PERCENT OF TOTAL UNITS REGISTERED BY ZONE January 18, 2022 - Page 36 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |12 REGISTRATIONS BY SUB AREA AS DESIGNATED BY TOV The relative number of units in the six TOV subareas are shown below. Together Lionshead (29%) and Vail Village (28%) represent over half of all registered units (1,389 of 2,454 total units). January 18, 2022 - Page 37 of 65 The following slides segment the TOV registration data base into three primary groupings: units registered before and after 2020, the units located in zone 1 compared to units in zone 2, and breakdowns of units in each of the six subareas that comprise the town COMPOSITION OF STR REGISTRATIONS January 18, 2022 - Page 38 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |14 REGISTRATIONS BY ZONE AND PERMIT DATE As shown below, the units permitted before 2020 (1,974 units) included a large percentage of units in Zone 1 (67%). Additional permitting since January 2020 has resulted in significant additions of units in Zone 2, the more outlying areas of Vail. January 18, 2022 - Page 39 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |15 REGISTRATIONS BY PROPERTY TYPE AND PERMIT DATE The efforts to add permitted units in the past two years resulted in the addition of relatively more single family (16% of new total) and townhomes (5%). January 18, 2022 - Page 40 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |16 REGISTRATIONS BY PROPERTY TYPE AND ZONE January 18, 2022 - Page 41 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |17 REGISTRATIONS BY PROPERTY TYPE AND SUB AREA There are sharp differences in the makeup of registered units in different part of town •Lionshead has 96% condo units, with only 2% single family homes. •In contrast Vail Village has 75% condos, and 4% single family homes. •West Vail, East Vail and Cascade Village include higher percentages of single family residences and townhomes. January 18, 2022 - Page 42 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |18 REGISTRATIONS BY PRESENCE OF HOA AND ZONE The presence of Homeowner Associations (HOAs) can be important to communications and management of STRs. As shown, 84% of town units are in areas with HOAs, with 92% coverage in Zone 1, and 72% in Zone 2. January 18, 2022 - Page 43 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |19 REGISTRATIONS BY OCCUPANCY (PERSONS AS ADVERTISED) AND ZONE The Town’s database includes a Registered Unit variable that is based on the advertised occupancy of each unit. As summarized below, more STRs are advertised for 6-7 people than any other category (37%), but with large percentages also in the 4-5 range (28%) and the 6-7 range (29%). January 18, 2022 - Page 44 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |20 REGISTRATIONS BY NUMBER OF BEDROOMS AND ZONE The overall composition of bedrooms in STR units is similar in Zone 1 and Zone 2. More units are identified with 2 bedrooms than any other category (39%), but with 20% one bedroom and 24% three bedroom units. In general, the data show that the STRs represent a significantly larger bedroom and overall occupancy potential than traditional lodge units in the town. January 18, 2022 - Page 45 of 65 The inventory of lodging provided by hotels/lodges and condotels (i.e. units typically with STRs but a front desk and unified services) were analyzed. The overall inventory is approximately 3,000 units based on TOV data.Interestingly, the ratio of traditional lodges/hotels to STR condotels is approximately 50/50.However, it should be noted that the STR/condotel configurations represent a larger number of bedrooms and a higher capacity for occupancy than the traditional hotel inventory. LODGING PROPERTY DATA January 18, 2022 - Page 46 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |22 NUMBER OF LODGING UNITS BY AREA AND CLASSIFICATION Condotels represent examples of Non-Dispersed STRs and they are found in a variety of locations throughout town. Traditional: 51% Condotel: 49% January 18, 2022 - Page 47 of 65 STR REGISTRATION AND ASSESSOR DASHBOARD January 18, 2022 - Page 48 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |24 ASSESSOR DATABASE MERGE AND DASHBOARD This tool enables the user to dynamically visualize Vail’s housing inventory including registered STRs, property ownership, value, etc. January 18, 2022 - Page 49 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |25 ASSESSOR DATABASE MERGE AND DASHBOARD An example visualizing East Vail using the dashboard: January 18, 2022 - Page 50 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |26 ASSESSOR DATABASE MERGE AND DASHBOARD A visualization of a sub area of East Vail by mailing address location and registered or non-registered STRs. January 18, 2022 - Page 51 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |27 RECENT STR REGULATIONS FROM PEER COMMUNITES City Concentration Limits Zoning Fees Moratorium Breckenridge 2,200; No new licenses to be issued until total STR licenses is under limit No Regulatory Fee: $400/bedroom; Fee to increase to $756/bedroom in 2023 (excludes hotels and lodges owned by one entity) License: $75- $175 (dependent on number of bedrooms) Aspen No No Business License: $150 Moratorium on new STR and home expansion construction until 9/30/2022 Crested Butte 30% of free market units Yes; Permitted Zones Unlimited Rental: $750/ annually Primary Residence (6 night max): $200/annually Moratorium on new STRs for non-primary residences until July 2022 Jackson Hole No Lodging Overlay or Resort District only Residential STR Fee: $107 Steamboat Springs No No One-time Sales Tax Fee: $50 One-time Vacation Home rental Fee: $500 Vacation Home Rental Renewal: $50/ annually Moratorium on new Single Family or duplex unit vacation home rentals until 1/31/2022 Truckee No No $481 Annually Moratorium on new STR until 6/15/2022 January 18, 2022 - Page 52 of 65 QUESTIONS AND DISCUSSION January 18, 2022 - Page 53 of 65 Economic & Planning Systems | RRC Associates Vail STR Study |29 ADDITIONAL QUESTIONS AND POLICY CONSIDERATIONS Next Steps What are the impacts on the housing market? –Evaluate home sales, STR registration data, and other data sets What is the nature of guest impact? –Document guest spending data and economic impacts Local calibration –Assess the pros/cons of setting parameters by use and/or location Policy Direction What policy approach works best to mitigate the impacts of STRs? –Limitation on STR activity? –Mitigation fees to generate funding? What factors would Council like to be considered? –Occupancy factors –Differential based on location –Per-bedroom calibration January 18, 2022 - Page 54 of 65 From:Tammy Nagel To:Stephanie Bibbens Subject:FW: Short term rentals Date:Tuesday, January 18, 2022 11:41:20 AM Tammy Nagel Town Clerk 75 S. Frontage Road W. Vail, Colorado 81657 970.479.2136 vailgov.com -----Original Message----- From: Deena M. DiCorpo <ddicorpo@icloud.com> Sent: Tuesday, January 18, 2022 11:27 AM To: Council Dist List <TownCouncil@vailgov.com> Subject: Short term rentals Good morning. I would like to offer my insights into the impact of short term rentals on the building where I live and my business. I am the owner of The Pet Boutique of Vail on Gore Creek Drive, and I live at 1880 Meadow Ridge Road. I have been a resident of Vail for 40 years, and a homeowner since 1988. First, the impact on my building. We now have 2 short term rentals in unit 4. This was never set up to be 2 units. They separated the unit into 2, and made both short term rentals. The remodel for this was a nightmare, and the owner lied about everything from mold and asbestos mitigation to plumbing…. Then we get into the rental season. His unit has only 2 parking spaces. Check the complaint hotline to see how many times I called about violations of this rule. Then there is plowing, I contact everyone regarding snow plows because everyone needs to vacate the parking lot. I won’t go into the details…. Again, I have had to call the hotline multiple times, and to tell you the truth, nothing was done. Fines are not levied, calls are not returned and one day, I called it 5 times, no one answered and I was not given any option to leave a message. What are we paying for with this ‘hotline’? Because unit 4 did not move cars, I had to pay for a front end loader to remove snow. Called about illegal dog… nothing done. Hope you get the picture. In my neighborhood, the amount of cars racing up and down the street is a nightmare. None of them live in my neighborhood, they’re all short term renters who don’t care about our once quiet ‘neighborhood’. Finally, with the long term rentals being converted to short term, you well know there is a great shortage of people to work. I’ve had to shorten my hours, close a day, and suffer the loss of revenue. I don’t think the additional people the short term rentals bring in does anything for the quality of the guest experience. If you’re going to have a complaint hotline, make sure it works, make sure the consequences you publish are truly the consequences. If they were, unit 4 in my building would have been fined a few times already. Short term rentals have no business in a neighborhood where people should be living and contributing to the well being of Vail. Thank you for taking this into consideration. January 18, 2022 - Page 55 of 65 Deena M. DiCorpo President Buffer Creek West Condo Association 1880 Meadow Ridge Road Sent from my iPad January 18, 2022 - Page 56 of 65 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: Timber Ridge Redevelopment process. P RE S E NT E R(S ): S cott Robson, Town Manager and Kathleen Halloran F inance Director AC T IO N RE Q UE S T E D O F C O UNC I L: F ormal action with a vote on process for selecting a developer (R F Q or Sole S ource). B AC K G RO UND: P lease see attached memorandum. S TAF F RE C O M M E ND AT IO N: Please provide a formal action with justification for the process of selecting a developer for the redevelopment of Timber Ridge A partments. AT TAC H ME N TS: Description memo public input January 18, 2022 - Page 57 of 65 TO: Vail Town Council FROM: Town Manager and Finance Director DATE: January 18, 2022 SUBJECT: Timber Ridge Redevelopment Process I. SUMMARY The purpose of this memorandum is to provide Town Council with background information about the town’s financial policies related to “public improvement construction contract awards” (Attachment A). With the active discussion about the proposed redevelopment of Timber Ridge Apartments it seems relevant to review the town’s policy that addresses the Request for Qualifications (RFQ) process and a sole source approach at this time. II. BACKGROUND Town Council has prioritized the redevelopment of Timber Ridge and has expressed an interest in negotiating a public/private partnership with Triumph Development West, LLC to collaborate on the redevelopment of Timber Ridge Village Apartments. To do so, based on the Town’s adopted purchasing policies, direction provided within Colorado State Statues and as advised by the town’s external auditors McMahan and Associates, the Town Council would need to discuss, justify the “why” and formally vote on a sole-source selection of Triumph Development West, LLC for development services. The approach recommended by the Town of Vail’s auditors and town staff is to issue a Request for Qualifications (RFQ) or similar, for development services that would include Triumph Development and other interested parties. The goal of any process would be to ensure the highest quality and most cost-effective development is delivered with tax-payer dollars. An RFP/RFQ process is in alignment with the 2018 Housing Policy Statements and offers an opportunity for the town to receive a broad range of input from the development community which might be represented by local, regional, or national companies. This platform has served the town well and has helped to secure successful public private partnerships. Examples of recent successful Town of Vail RFQ/RFP process:  Public Works Shops ($18.8M)  New parking systems and equipment ($1.0M)  Red Sandstone Parking structure in partnership with ECSD ($14.1M)  Lionshead bus stop ($667K)  South Frontage Road improvements & round-about ($7.5M)  Lupine Bridge repairs ($645K)  New Town of Vail website(s) ($200K) January 18, 2022 - Page 58 of 65 Town of Vail Page 2  Data Center & W. Vail Fire Station improvements ($3.7M)  Nature Center Design ($280K)  East Vail Interchange improvements ($1.3M)  Booth Lake Trailhead restrooms ($230K) Projects large and small are put out for bid or proposals in compliance with the town’s financial policies and in step with state statutes. Attached for reference are excerpts from Town Code (Attachment A) and Town Purchasing Policies (Attachment B). Sole sourcing, or purchasing an item without a bid process or receiving proposals, has been used by the town for purchases under $25,000 and occasionally for professional services / consultants contracts under $50,000 for a continuation of prior services. The town’s bidding and proposal process has proven to be successful over time with the most recent success at Public Works Shops (contracted with Hyder Construction). III. DISCUSSION The redevelopment of Timber Ridge Apartments has been estimated by some to likely cost over $70 million. The recently initiated Housing Market Study will provide much needed data on the type of housing product to pursue and market considerations for such a substantial project in Vail. In addition, Town Council still has a number of items to discuss and decide upon early in the process, such as land sale or lease, financial subsidy, etc. that will factor into plans for redevelopment. It is still early in the proposed timeline to decide on a developer or contractor. An RFQ process requesting a limited number of responses from select developers will add a nominal amount of time and will open the project up to a variety of program concepts and financing alternatives. Most importantly, Town Council would not depart from Town Code or policies or best practices in the fiscal responsibility to taxpayer dollars. It should be noted that the eastern redevelopment of Timber Ridge was originally put out for bid in 2009 and ultimately sole-sourced to Gorman & Company in 2013. The first round of negotiations failed due to a number of complications, including $17M in debt on the property which the town wanted to be covered by the new development. Rising construction costs and interest rates then caused a significant gap in the financing. The failure of this earlier RFP process does not implicate failure in a future process. The current development agreement for the Residences at Main Vail project (also sole-sourced to Triumph) states that Triumph Development has a “right to pursue the Timber Ridge Project at Triumph’s own cost”. The earlier commitment for an exclusive right to negotiate for development rights at Timber Ridge expired on May 5, 2021 which was later extended to June 28, 2021 due to delays in moving forward with planning and development agreements for Residences at Main Vail and financing challenges. Completion of the Residences at Main Vail was intended for April 2023 but is now estimated by Triumph to be complete between August and October 2023. This delays the initial start for and the timing of the completion of Timber Ridge redevelopment, allowing more time for an RFQ process and public input on the overall project. Over the last several weeks since public discussion on Timber Ridge, staff has received inquiries from Colorado-based developers interested in the project. January 18, 2022 - Page 59 of 65 Town of Vail Page 3 Below is an analysis of the “pros” and “cons” of an RFQ process for the Timber Ridge redevelopment project: Pros  Opens the process up to new and creative ideas from multiple developer experts  Allows other interested developers to participate in the project based on (and selected upon) a similar set of criteria  Transparency to the public regarding the project proposals  Fiscal responsibility and stewardship of a $70 million project  Meets the town’s policies and recommendations of auditors  Opens up financing alternatives and options Con(s)  Depending on process, could add several weeks to the planning timeline. However, given the current estimates for Residences at Main Vail (RMV) completion between August and October of 2023 there is more time available than previously expected. This is with the understanding that Timber Ridge redevelopment would not break ground until the completion of RMV.  Potential risk of selecting a developer the Town has less experience with Below are the “pros” and “cons” of Sole Sourcing the Timber Ridge redevelopment project: Pros  Working with a developer the Town has had previous success with on similar projects; staff working relationships  Knowledge of town processes may streamline timing of project  Appropriate if vendor is providing a specialized or one-of-a-kind product or service Con(s)  Limits participation by other qualified developers who are interested in this project  A less transparent process to the public  May limit a range of creative ideas from multiple approaches and experiences of prospective developers  Not the recommended approach from town’s policies and auditors  The development of employee housing in mountain communities is not such a unique business where only one developer is qualified IV. NEXT STEPS Below are the upcoming tasks initially identified for February 1, 2022:  Adopt initial project goals and objectives  Appropriate planning and pre-development project budget  Appoint Timber Ridge Redevelopment Advisory Committee V. ACTION REQUESTED OF COUNCIL Does Town Council wish to sole-source the future redevelopment of Timber Ridge Apartments or pursue Request for Qualifications from a limited number of developers/contractors? List the justification for the sole source approach if selected as this will provide the necessary documentation for audit requirements. January 18, 2022 - Page 60 of 65 Town of Vail Page 4 Attachment A Town Code: Title 3 Revenue and Finance Chapter 3 Public Improvement Construction Contract Award Vail’s Town Code requires a bid process on all construction projects in step with Colorado State Statues: 2-3-1: CONTRACT REQUIRED: All work done by the Town in the construction of works of public improvement of every kind shall be constructed by independent contracts and all contracts shall be let by the Town Manager with the approval and direction of the Town Council. (Ord. 8(1976) § 1) 2-3-2: LOWEST BIDDER: All contracts shall be let to the lowest responsible bidder after public advertisement. (Ord. 8(1976) § 1(a)) 2-3-3: REJECTION OF BIDS: A. Justification: If after advertisement, it is determined by the Town Council that the bids are too high, the lowest bidder was not reliable or responsible, or that the proposed improvements could be made for less by the Town's own employees or by negotiated contract, the Town Council may reject all the bids and direct: 1. That the project be put out again for bid when the conditions are deemed more favorable; 2. That the project be completed by the Town and its forces; or 3. That the Town Manager attempt to negotiate a contract that may be more favorable to the Town. B. Inform Bidders: In all advertisements, the right shall be reserved to reject any or all bids, and upon rejecting all bids, other bids may be advertised for or negotiations entered for the contract. (Ord. 8(1976) § 1(b)) 2-3-4: BIDS NOT REQUIRED FOR CERTAIN SERVICES: The Town is not required to advertise and receive bids for technical, professional or incidental assistance, and the Town Manager shall have the authority to provide said services for the Town. (Ord. 8(1976) § 1(c)) 2-3-5: NEGOTIATED CONTRACT: The Town Manager shall have the right to enter into negotiations for a contract to construct a particular local improvement or to perform work thereon without submitting it for bid and without obtaining the previous approval of the Town Council if the value of the contract is not greater than fifty thousand dollars ($50,000.00). The Town Manager shall have the right to enter into negotiations for a contract to construct a particular local improvement or to perform work thereon without submitting it for bid with the prior approval of the Town Council if the value of the contract is greater than fifty thousand dollars ($50,000.00). (Ord. 34(1991) § 1: Ord. 8(1976) § 1(d)) January 18, 2022 - Page 61 of 65 Town of Vail Page 5 Attachment B Excerpt from Town of Vail Purchasing Policies: The purpose of these policies is to enable quality professional service to our citizens/guests and maximize the efficiency and effectiveness of all functions of the organization. Our goal is to ensure fair and open competition and compliance with all laws and regulations to provide the best value to the taxpayers for the goods and services required to run the town. Bid Process & Contracting Verbal bids are acceptable up to $25,000 purchases however over $25,000 three written bids must be obtained and a written contract signed by the Town Manager. Purchases over $50,000 must be approved by Town Council. The following matrix is a quick reference guide that identifies when a bid/proposal is required, when a contract is required (per item), and the approval level required. The requirements vary for various dollar levels. Please refer to the detailed instructions below that accompany this matrix. $0 - $5,000 $5,000 - $25,000 $25,000 - $50,000 $50,000 and up Bids 3 written bids/ proposals 3 written bids 3 written bids Contract Recommended Required Required Approvals -Dept Head or authorized staff -Dept Head or authorized staff -Town Manager signs contract -Town Council -Town Manager signs contract Sole Sourcing There may be circumstances when bids may not be able to be obtained. The intent of sole sourcing is for items such as fire trucks or buses where there are not many vendors. This policy does not include preferred vendors. For any of these “sole-source” contracts, the purchaser must document the fact that a sole source provider was used and the reason why he/she was unable to comply with this purchasing policy. The same financial policy applies to sole source contracts, for example under $25,000 department head may sign and over $50,000 must be approved by Town Council prior to execution of the contract and signed by the Town Manager. January 18, 2022 - Page 62 of 65 From:Tammy Nagel To:Stephanie Bibbens Subject:FW: Timber Ridge Apartments Date:Monday, January 17, 2022 2:37:09 PM Attachments:image001.png image002.png image003.png image004.png image005.png image012.png Please place this email under timber ridge on agenda. Does not need to be uploaded before the meeting tomorrow. Thank you Tammy Nagel Town Clerk 75 S. Frontage Road W. Vail, Colorado 81657 970.479.2136 vailgov.com From: Kimball Crangle <kcrangle@gormanusa.com> Sent: Monday, January 17, 2022 10:35 AM To: Council Dist List <TownCouncil@vailgov.com> Subject: Timber Ridge Apartments Dear Town Councill: Please accept this email as an indication of our interest to receive a copy of an RFP/Q if one is issued for Timber Ridge Apartments. As the developer of Lion’s Ridge (the previous east half of Timber Ridge), we are interested in the future of the west side of the site. We have successfully developed affordable and workforce housing throughout the state utilizing varying financing tools, and are interested in these types of developments in Vail and Eagle County. Sincerely, Kimball January 18, 2022 - Page 63 of 65 Kimball Crangle Colorado Market President Cell/Text 303-887-2707 E kcrangle@gormanusa.com W www.gormanusa.com 1060 Bannock Street, Suite 305 | Denver, CO 80204 January 18, 2022 - Page 64 of 65 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 7:50 pm (estimate) January 18, 2022 - Page 65 of 65