HomeMy WebLinkAboutInformation Update 0412221
AGENDA
INFORMATION UPDATE
April 12, 2022
5:00 PM,
I.INFORMATION UPDATE
I.A.Economic Planning Systems, Short-term Rental Fee and Employee Generation
Studies
I.B.Wheeler Phase 2 Remobilization
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INFO ONLY - MEMORANDUM
TO:Mayor Torre and Aspen City Council
FROM:Phillip Supino, Community Development Director
MEMO DATE:March 31, 2022
MEETING DATE:March 8, 2022
RE:Info Only – Contract No. 097, 2022 – Economic Planning
Systems, Short-term Rental Fee and Employee Generation
Studies
SUMMARY AND BACKGROUND:
Analysis of the employee generation and appropriateness of potential fees for short-term
rentals is an important aspect of the work ComDev staff is conducting under the protection
of the moratorium established by Ord. No. 6, Series of 2022. Consultant services are
necessary to support that work. The City has contracted with Economic Planning
Systems (EPS), and RRC Associates (the City’s employee generation and mitigation
study consultant) as a sub-contractor, to assist in this analysis. The work is being
completed during the 2022 residential development moratorium.
DISCUSSION:
Ord. No. 6, Series of 2022 granted certain procurement authority to the City Manager to
support the work desired by Council to be conducted during the moratorium. This
authority was granted in recognition of the relatively short timeline provided by Ord. 6 to
conduct complex analysis and code amendments and the need to quickly contract with
service providers to assist in that work. Commensurate with the procurement clause in
Ord. 6, the City Manager approved the contract with EPS for a fee not to exceed $77,000
on March 25,, 2022. The work under this contract has commenced.
FINANCIAL IMPACTS: The value of the approved contract is up to $77,00.
ENVIRONMENTAL IMPACTS: N/A
ALTERNATIVES:N/A
RECOMMENDATIONS: N/A
CITY MANAGER COMMENTS:
EXHIBITS:
Exhibit A – Contract No. 097, 2022: Contract for Services with EPS
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Agreement Professional Services Page 0
CITY OF ASPEN STANDARD FORM OF AGREEMENT
PROFESSIONAL SERVICES
City of Aspen Contract No.: 2022-097
AGREEMENT made this 23 day of March, in the year 2022.
BETWEEN the City:
Contract Amount:
The City of Aspen
c/o Sara Ott
427 Rio Grande Place
Aspen, Colorado 81611
Phone: (970) 920-5079
And the Professional:
Andrew Knudtsen
c/o Economic & Planning Systems (EPS)
730 17th Street
Denver, CO 80202
Phone: 303-623-3557
aknudtsen@epsdenver.com
For the Following Project:
Analysis of several aspects of Aspen’s short term rental context that importantly studies the
employee generation impacts of STR use. EPS will be subcontracting with RRC Associates for
this work.
Exhibits appended and made a part of this Agreement:
If this Agreement requires the City to pay
an amount of money in excess of
$50,000.00 it shall not be deemed valid
until it has been approved by the City
Council of the City of Aspen.
City Council Approval:
Date: ___________________________
Resolution No.:___________________
Exhibit A: Scope of Work and Fee Schedule
Total: $77,000
Not to Exceed
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The City and Professional agree as set forth below.
1. Scope of Work. Professional shall perform in a competent and professional manner the Scope
of Work as set forth at Exhibit A attached hereto and by this reference incorporated herein.
2. Completion. Professional shall commence Work immediately upon receipt of a written Notice
to Proceed from the City and complete all phases of the Scope of Work as expeditiously as is
consistent with professional skill and care and the orderly progress of the Work in a timely manner.
The parties anticipate that all Work pursuant to this Agreement shall be completed no later than
December 31, 2022. Upon request of the City, Professional shall submit, for the City's approval, a
schedule for the performance of Professional's services which shall be adjusted as required as the
project proceeds, and which shall include allowances for periods of time required by the City's project
engineer for review and approval of submissions and for approvals of authorities having jurisdiction
over the project. This schedule, when approved by the City, shall not, except for reasonable cause, be
exceeded by the Professional.
3. Payment. In consideration of the work performed, City shall pay Professional on a time and
expense basis for all work performed. The hourly rates for work performed by Professional shall not
exceed those hourly rates set forth at Exhibit A appended hereto. Except as otherwise mutually agreed
to by the parties the payments made to Professional shall not initially exceed the amount set forth
above. Professional shall submit, in timely fashion, invoices for work performed. The City shall
review such invoices and, if they are considered incorrect or untimely, the City shall review the matter
with Professional within ten days from receipt of the Professional's bill.
4. Non-Assignability. Both parties recognize that this Agreement is one for personal services
and cannot be transferred, assigned, or sublet by either party without prior written consent of the other.
Sub-Contracting, if authorized, shall not relieve the Professional of any of the responsibilities or
obligations under this Agreement. Professional shall be and remain solely responsible to the City for
the acts, errors, omissions or neglect of any subcontractors’ officers, agents and employees, each of
whom shall, for this purpose be deemed to be an agent or employee of the Professional to the extent
of the subcontract. The City shall not be obligated to pay or be liable for payment of any sums due
which may be due to any sub-contractor.
5. Termination of Procurement. The sale contemplated by this Agreement may be
canceled by the City prior to acceptance by the City whenever for any reason and in its sole
discretion the City shall determine that such cancellation is in its best interests and convenience.
6. Termination of Professional Services. The Professional or the City may terminate the
Professional Services component of this Agreement, without specifying the reason therefor, by
giving notice, in writing, addressed to the other party, specifying the effective date of the termination.
No fees shall be earned after the effective date of the termination. Upon any termination, all finished
or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports or
other material prepared by the Professional pursuant to this Agreement shall become the property of
the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for
damages sustained by the City by virtue of any breach of this Agreement by the Professional, and
the City may withhold any payments to the Professional for the purposes of set-off until such time
as the exact amount of damages due the City from the Professional may be determined.
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7. Independent Contractor Status. 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. Professional shall be, and shall perform as, an independent Contractor who agrees to
use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or
servant of Professional shall be, or shall be deemed to be, the employee, agent or servant of the City.
City is interested only in the results obtained under this contract. The manner and means of
conducting the work are under the sole control of Professional. None of the benefits provided by City
to its employees including, but not limited to, workers' compensation insurance and unemployment
insurance, are available from City to the employees, agents or servants of Professional. Professional
shall be solely and entirely responsible for its acts and for the acts of Professional's agents, employees,
servants and subcontractors during the performance of this contract. Professional shall indemnify
City against all liability and loss in connection with, and shall assume full responsibility for payment
of all federal, state and local taxes or contributions imposed or required under unemployment
insurance, social security and income tax law, with respect to Professional and/or Professional's
employees engaged in the performance of the services agreed to herein.
8. Indemnification. The Professional agrees to indemnify, hold harmless and, not excluding the City‘s
right to participate, defend the City, its subsidiary, parent, associated and/or affiliated entities,
successors, or assigns, its elected officials, trustees, employees, agents, volunteers, and any
jurisdiction or agency issuing permits for any work included in the project, hereinafter referred to as
indemnitee, from all suits and claims, including attorney's fees and cost of litigation, actions, loss,
damage, expense, cost or claims of any character or any nature arising out of the work done in
fulfillment of the terms of this Contract or on account of any act, claim or amount arising or recovered
under workers' compensation law or arising out of the failure of the Professional to conform to any
statutes, ordinances, regulation, law or court decree, to the extent the claim was caused by
Professional’s sole negligence. It is agreed that the Professional will be responsible for primary loss
investigation, defense, and judgment costs where this Contract of indemnity applies. In consideration
of the award of this Contract, the Professional agrees to waive all rights of subrogation against the
City, its subsidiary, parent, associated and/or affiliated entities, successors, or assigns, its elected
officials, trustees, employees, agents, and volunteers for losses arising from the work performed by
the Professional for the City.
The Professional’s obligation to indemnify the City of Aspen under this Contract shall in no
circumstance be interpreted as a requirement or obligation for Professional to indemnify the City of
Aspen, or City affiliated stakeholders, from City of Aspen of Affiliates own negligence or willful
wrongdoing.
8. Professional's Insurance.
(a) Professional agrees to procure and maintain, at its own expense, a policy or policies
of insurance sufficient to insure against all liability, claims, demands, and other obligations
assumed by the Professional pursuant to Section 8 above. Such insurance shall be in addition
to any other insurance requirements imposed by this contract or by law. The Professional shall
not be relieved of any liability, claims, demands, or other obligations assumed pursuant to
Section 8 above by reason of its failure to procure or maintain insurance, or by reason of its
failure to procure or maintain insurance in sufficient amounts, duration, or types.
(b) Professional shall procure and maintain, and shall cause any subcontractor of the
Professional to procure and maintain, the minimum insurance coverages listed below. Such
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coverages shall be procured and maintained with forms and insurance acceptable to the City.
All coverages shall be continuously maintained to cover all liability, claims, demands, and
other obligations assumed by the Professional pursuant to Section 8 above. In the case of any
claims-made policy, the necessary retroactive dates and extended reporting periods shall be
procured to maintain such continuous coverage.
(i) Worker's Compensation insurance to cover obligations imposed by applicable
laws for any employee engaged in the performance of work under this contract, and
Employers' Liability insurance with minimum limits of ONE MILLION DOLLARS
($1,000,000.00) for each accident, ONE MILLION DOLLARS ($1,000,000.00)
disease - policy limit, and ONE MILLION DOLLARS ($1,000,000.00) disease - each
employee. Evidence of qualified self-insured status may be substituted for the
Worker's Compensation requirements of this paragraph.
(ii) Commercial General Liability insurance with minimum combined single
limits of TWO MILLION DOLLARS ($2,000,000.00) each occurrence and THREE
MILLION DOLLARS ($3,000,000.00) aggregate. The policy shall be applicable to
all premises and operations. The policy shall include coverage for bodily injury, broad
form property damage (including completed operations), personal injury (including
coverage for contractual and employee acts), blanket contractual, independent
contractors, products, and completed operations. The policy shall include coverage
for explosion, collapse, and underground hazards. The policy shall contain a
severability of interests provision.
(iii) Comprehensive Automobile Liability insurance with minimum combined
single limits for bodily injury and property damage of not less than ONE MILLION
DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS
($1,000,000.00) aggregate with respect to each Professional's owned, hired and non-
owned vehicles assigned to or used in performance of the Scope of Work. The policy
shall contain a severability of interests provision. If the Professional has no owned
automobiles, the requirements of this Section shall be met by each employee of the
Professional providing services to the City under this contract.
(iv) Professional Liability insurance with the minimum limits of ONE MILLION
DOLLARS ($1,000,000) each claim and ONE MILLION DOLLARS ($1,000,000)
aggregate.
(c) Every policy required above shall be primary insurance, and any insurance carried by the
City, its officers or employees, or carried by or provided through any insurance pool of the
City, shall be excess and not contributory insurance to that provided by Professional. No
additional insured endorsement to the policy required above shall contain any exclusion for
bodily injury or property damage arising from completed operations. The Professional shall
be solely responsible for any deductible losses under any policy required above.
(d) The certificate of insurance provided to the City shall be completed by the Professional's
insurance agent as evidence that policies providing the required coverages, conditions, and
minimum limits are in full force and effect, and shall be reviewed and approved by the City
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prior to commencement of the contract. No other form of certificate shall be used. The certifi-
cate shall identify this contract and shall provide that the coverages afforded under the policies
shall not be canceled, terminated or materially changed until at least thirty (30) days prior
written notice has been given to the City.
(e) Failure on the part of the Professional to procure or maintain policies providing the
required coverages, conditions, and minimum limits shall constitute a material breach of
contract upon which City may immediately terminate this contract, or at its discretion City
may procure or renew any such policy or any extended reporting period thereto and may pay
any and all premiums in connection therewith, and all monies so paid by City shall be repaid
by Professional to City upon demand, or City may offset the cost of the premiums against
monies due to Professional from City.
(f) City reserves the right to request and receive a certified copy of any policy and any
endorsement thereto.
(g) The parties hereto understand and agree that City is relying on, and does not waive or
intend to waive by any provision of this contract, the monetary limitations (presently
$350,000.00 per person and $990,000 per occurrence) or any other rights, immunities, and
protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq.,
C.R.S., as from time to time amended, or otherwise available to City, its officers, or its
employees.
9. City's Insurance. The parties hereto understand that the City is a member of the Colorado
Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA Proper-
ty/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Risk
Management Department and are available to Professional for inspection during normal business
hours. City makes no representations whatsoever with respect to specific coverages offered by
CIRSA. City shall provide Professional reasonable notice of any changes in its membership or
participation in CIRSA.
10. Completeness of Agreement. It is expressly agreed that this agreement contains the entire
undertaking of the parties relevant to the subject matter thereof and there are no verbal or written
representations, agreements, warranties or promises pertaining to the project matter thereof not
expressly incorporated in this writing.
11. Notice. Any written notices as called for herein may be hand delivered or mailed by certified
mail return receipt requested to the respective persons and/or addresses listed above.
12. Non-Discrimination. No discrimination because of race, color, creed, sex, marital status,
affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or religion
shall be made in the employment of persons to perform services under this contract. Professional
agrees to meet all of the requirements of City's municipal code, Section 15.04.570, pertaining to non-
discrimination in employment.
13. Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate
as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition
of this Agreement can be waived except by the written consent of the City, and forbearance or
indulgence by the City in any regard whatsoever shall not constitute a waiver of any term, covenant,
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or condition to be performed by Professional to which the same may apply and, until complete
performance by Professional of said term, covenant or condition, the City shall be entitled to invoke
any remedy available to it under this Agreement or by law despite any such forbearance or indulgence.
14. Execution of Agreement by City. This Agreement shall be binding upon all parties hereto
and their respective heirs, executors, administrators, successors, and assigns. Notwithstanding
anything to the contrary contained herein, this Agreement shall not be binding upon the City unless
duly executed by the Mayor of the City of Aspen (or a duly authorized official in his absence)
following a Motion or Resolution of the Council of the City of Aspen authorizing the Mayor (or a
duly authorized official in his absence) to execute the same.
16. Worker Without Authorization prohibited – CRS §8-17.5-101 & §24-76.5-101
Purpose. During the 2021 Colorado legislative session, the legislature passed House Bill 21-
1075 that amended current CRS §8-17.5-102 (1), (2)(a), (2)(b) introductory portion, and
(2)(b)(III) as it relates to the employment of and contracting with a “worker without
authorization” which is defined as an individual who is unable to provide evidence that the
individual is authorized by the federal government to work in the United States. As amended,
the current law prohibits all state agencies and political subdivisions, including the Owner, from
knowingly hiring a worker without authorization to perform work under a contract, or to
knowingly contract with a Consultant who knowingly hires with a worker without authorization
to perform work under the contract. The law also requires that all contracts for services include
certain specific language as set forth in the statutes. The following terms and conditions have
been designed to comply with the requirements of this new law.
Definitions. The following terms are defined by this reference are incorporated herein and in any
contract for services entered into with the Owner.
1. "E-verify program" means the electronic employment verification program created in Public
Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as
amended, that is jointly administered by the United States Department of Homeland Security and
the social security Administration, or its successor program.
2. "Department program" means the employment verification program established pursuant to
Section 8-17.5-102(5)(c).
3. "Public Contract for Services" means this Agreement.
4. "Services" means the furnishing of labor, time, or effort by a Consultant or a subconsultant not
involving the delivery of a specific end product other than reports that are merely incidental to
the required performance.
5. “Worker without authorization” means an individual who is unable to provide evidence that
the individual is authorized by the federal government to work in the United States
By signing this document, Consultant certifies and represents that at this time:
1. Consultant shall confirm the employment eligibility of all employees who are newly hired for
employment to perform work under the public contract for services; and
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2. Consultant has participated or attempted to participate in either the e-verify program or the
department program in order to verify that new employees are not workers without authorization.
Consultant hereby confirms that:
1. Consultant shall not knowingly employ or contract with a worker without authorization to
perform work under the Public Contract for Services.
2. Consultant shall not enter into a contract with a subconsultant that fails to certify to the
Consultant that the subconsultant shall not knowingly employ or contract with a worker without
authorization to perform work under the Public Contract for Services.
3. Consultant has confirmed the employment eligibility of all employees who are newly hired for
employment to perform work under the public contract for services through participation in
either the e-verify program or the department program.
4. Consultant shall not use the either the e-verify program or the department program procedures
to undertake pre-employment screening of job applicants while the Public Contract for Services
is being performed.
If Consultant obtains actual knowledge that a subconsultant performing work under the Public
Contract for Services knowingly employs or contracts with a worker without authorization,
Consultant shall:
1. Notify such subconsultant and the Owner within three days that Consultant has actual
knowledge that the subconsultant is employing or subcontracting with a worker without
authorization: and
2. Terminate the subcontract with the subconsultant if within three days of receiving the notice
required pursuant to this section the subconsultant does not stop employing or contracting with
the worker without authorization; except that Consultant shall not terminate the Public Contract
for Services with the subconsultant if during such three days the subconsultant provides
information to establish that the subconsultant has not knowingly employed or contracted with a
worker without authorization.
Consultant shall comply with any reasonable request by the Colorado Department of Labor and
Employment made in the course of an investigation that the Colorado Department of Labor and
Employment undertakes or is undertaking pursuant to the authority established in Subsection 8-
17.5-102 (5), C.R.S.
If Consultant violates any provision of the Public Contract for Services pertaining to the duties
imposed by Subsection 8-17.5-102, C.R.S. the Owner may terminate this Agreement. If this
Agreement is so terminated, Consultant shall be liable for actual damages to the Owner arising
out of Consultant’s violation of Subsection 8-17.5-102, C.R.S.
It is agreed that neither this agreement nor any of its terms, provisions, conditions,
representations or covenants can be modified, changed, terminated or amended, waived,
superseded or extended except by appropriate written instrument fully executed by the parties.
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If any of the provisions of this agreement shall be held invalid, illegal or unenforceable it shall
not affect or impair the validity, legality or enforceability of any other provision.
17. Warranties Against Contingent Fees, Gratuities, Kickbacks and Conflicts of Interest.
(a) Professional warrants that no person or selling agency has been employed or retained
to solicit or secure this Contract upon an agreement or understanding for a commission,
percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide
established commercial or selling agencies maintained by the Professional for the purpose
of securing business.
(b) Professional agrees not to give any employee of the City a gratuity or any of fer of
employment in connection with any decision, approval, disapproval, recommendation,
preparation of any part of a program requirement or a purchase request, influencing the
content of any specification or procurement standard, rendering advice, investigation,
auditing, or in any other advisory capacity in any proceeding or application, request for
ruling, determination, claim or controversy, or other particular matter, pertaining to this
Agreement, or to any solicitation or proposal therefore.
(c) Professional represents that no official, officer, employee or representative of the
City during the term of this Agreement has or one (1) year thereafter shall have any interest,
direct or indirect, in this Agreement or the proceeds thereof, except thos e that may have
been disclosed at the time City Council approved the execution of this Agreement.
(d) In addition to other remedies it may have for breach of the prohibitions against
contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right
to:
1. Cancel this Purchase Agreement without any liability by the City;
2. Debar or suspend the offending parties from being a Professional, contractor or
subcontractor under City contracts;
3. Deduct from the contract price or consideration, or otherwise recover, the value of
anything transferred or received by the Professional; and
4. Recover such value from the offending parties.
18. Fund Availability. Financial obligations of the City payable after the current fiscal year
are contingent upon funds for that purpose being appropriated, budgeted and otherwise made
available. If this Agreement contemplates the City utilizing state or federal funds to meet its
obligations herein, this Agreement shall be contingent upon the availability of those funds for
payment pursuant to the terms of this Agreement.
19. General Terms.
(a) It is agreed that neither this Agreement nor any of its terms, provisions, conditions,
representations or covenants can be modified, changed, terminated or amended, waived,
superseded or extended except by appropriate written instrument fully executed by the parties.
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(b) If any of the provisions of this Agreement shall be held invalid, illegal or
unenforceable it shall not affect or impair the validity, legality or enforceability of any other
provision.
(c) The parties acknowledge and understand that there are no conditions or limitations to
this understanding except those as contained herein at the time of the execution hereof and
that after execution no alteration, change or modification shall be made except upon a writing
signed by the parties.
(d) This Agreement shall be governed by the laws of the State of Colorado as from time
to time in effect. Venue is agreed to be exclusively in the courts of Pitkin County, Colorado.
20. Electronic Signatures and Electronic Records This Agreement and any amendments
hereto may be executed in several counterparts, each of which shall be deemed an original, and
all of which together shall constitute one agreement binding on the Parties, notwithstanding the
possible event that all Parties may not have signed the same counterpart. Furthermore, each Party
consents to the use of electronic signatures by either Party. The Scope of Work, and any other
documents requiring a signature hereunder, may be signed electronically in the manner agreed to
by the Parties. The Parties agree not to deny the legal effect or enforceability of the Agreement
solely because it is in electronic form or because an electronic record was used in its formation.
The Parties agree not to object to the admissibility of the Agreement in the form of an electronic
record, or a paper copy of an electronic documents, or a paper copy of a document bearing an
electronic signature, on the grounds that it is an electronic record or electronic signature or that it
is not in its original form or is not an original.
20. Successors and Assigns. This Agreement and all of the covenants hereof shall inure to the
benefit of and be binding upon the City and the Professional respectively and their agents,
representatives, employee, successors, assigns and legal representatives. Neither the City nor the
Professional shall have the right to assign, transfer or sublet its interest or obligations hereunder
without the written consent of the other party.
21. Third Parties. This Agreement does not and shall not be deemed or construed to confer
upon or grant to any third party or parties, except to parties to whom Professional or City may
assign this Agreement in accordance with the specific written permission, any right to claim
damages or to bring any suit, action or other proceeding against either the City or Professional
because of any breach hereof or because of any of the terms, covenants, agreements or conditions
herein contained.
22. Attorney’s Fees. In the event that legal action is necessary to enforce any of the provisions
of this Agreement, the prevailing party shall be entitled to its costs and reasonable attorney’s fees.
23. Waiver of Presumption. This Agreement was negotiated and reviewed through the mutual
efforts of the parties hereto and the parties agree that no construction shall be made or presumption
shall arise for or against either party based on any alleged unequal status of the parties in the
negotiation, review or drafting of the Agreement.
24. Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion.
Professional certifies, by acceptance of this Agreement, that neither it nor its principals is presently
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debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from
participation in any transaction with a Federal or State department or agency. It further certifies
that prior to submitting its Bid that it did include this clause without modification in all lower tier
transactions, solicitations, proposals, contracts and subcontracts. In the event that Professional or
any lower tier participant was unable to certify to the statement, an explanation was attached to
the Bid and was determined by the City to be satisfactory to the City.
25. Integration and Modification. This written Agreement along with all Contract Documents
shall constitute the contract between the parties and supersedes or incorporates any prior written
and oral agreements of the parties. In addition, Professional understands that no City official or
employee, other than the Mayor and City Council acting as a body at a council meeting, has
authority to enter into an Agreement or to modify the terms of the Agreement on behalf of the
City. Any such Agreement or modification to this Agreement must be in writing and be executed
by the parties hereto.
26. Authorized Representative. The undersigned representative of Professional, as an
inducement to the City to execute this Agreement, represents that he/she is an authorized
representative of Professional for the purposes of executing this Agreement and that he/she has
full and complete authority to enter into this Agreement for the terms and conditions specified
herein.
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly
authorized officials, this Agreement of which shall be deemed an original on the date first written
above.
CITY OF ASPEN, COLORADO: PROFESSIONAL:
________________________________ ______________________________
[Signature] [Signature]
By: _____________________________ By: _____________________________
[Name] [Name]
Title: ____________________________ Title: ____________________________
Date: ___________________ Date: ___________________
Approve as to Form:
_____________________
City Attorney
General Conditions and Special Conditions can be found on City
of Aspen Website.
https://www.cityofaspen.com/497/Purchasing
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3/23/2022 | 6:28:51 PM PDT
Andrew Knudtsen
Managing Principal
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City Manager
Sara Ott
3/25/2022 | 11:42:14 AM PDT
3/25/2022 | 1:54:42 PM MDT
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EXHIBITS A and B - PROFESSIONAL SERVICES AGREEMENT
Project Scope and Fee Schedule
March 17, 2022
Ben Anderson, Principal Long Range Planner, Community Development
City of Aspen
130 S. Galena Street
Aspen, CO 81611
Via email: ben.anderson@aspen.gov
Dear Ben:
RRC Associates and Economic & Planning Systems are pleased to provide you with this proposal
to conduct a vacation rental housing regulatory fee study
Please don’t hesitate to contact us in the event that you would like to explore modifications to
the scope of work and associated budget.
Background
On December 8, 2021, the Aspen City Council passed a temporary moratorium on selected new
residential land use applications in certain zoning districts, on certain residential building permit
applications, and on the issuance of new vacation rental licenses, in order to assess issues and
develop policy responses regarding affordable housing, short-term rentals, climate change, and
selected other community concerns. A sharp rise in housing prices and a decrease in the
availability of affordable/attainable housing are among the reasons for the moratorium.
During the moratorium window, among other work items, the City wishes to explore the
possibility of assessing a vacation rental housing regulatory fee, including a component
associated with employment generation and housing demand, and a component associated
with City of Aspen administration of STR regulatory programs.
Regarding vacation rentals (aka short-term rentals, STRs), an Aspen staff memo prepared for a
November 16, 2021 Council work session summarized selected market data, community
impacts, and potential regulatory approaches to STRs. The memo notes that STRs impact the
housing market by putting downward pressure on the supply of housing and labor (by taking
some units out of the long-term occupancy pool), while also putting upward pressure on
property values and demand for labor to serve STR homes and STR visitors.
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Relatedly, a November 5, 2021 RRC report for the City of Aspen examined selected
characteristics and selected employment generation measures associated with STRs. Based on
a reanalysis of the 2015 residential employment generation study data, the study found that
STRs generate more management and upkeep employment than housing units not used as
STRs.
Scope of Work, Timeline and Budget
EPS, in conjunction with RRC, has developed the following approach and Scope of Services that
addresses three topics and objectives:
Characterize Short Term Rentals (STRs) – This step would enable the City to better
understand the nature of STRs in Aspen. This study aims to ground the data analysis
provided in later tasks with an overview of the industry and how it performs within Aspen.
The report will include data on the location of STRs, their use and occupancy characteristics,
economic impact, and impact on housing available to the local resident workforce. (We
recognize that some of this work has already been done by Aspen staff, e.g. per November
16, 2021 Council Meeting staff memo, as well as by RRC in its November 5, 2021 report).
Housing Impacts – One of the strongest criticisms of STRs is that they may take housing out
of the inventory that could be available to the local workforce and/or increase the cost of
the remaining housing that is available. This study will evaluate the types of units used as
STRs and gauge the degree to which STRs contribute to workforce housing shortages.
Consider Tools to Regulate Impacts of STRs – Aspen and other mountain resort
communities in Colorado are evaluating tools to regulate the impact of STRs on housing
availability and affordability. There is interest in considering a fee-based approach that
would levy an annual licensing fee. The fee revenue would be dedicated to providing a
specific purpose such as housing development or housing programs. The effort will
culminate in a study providing the Town with a rational nexus upon which it can base
adoption of an STR fee schedule.
a.Task 1: Project Initiation and Data Collection
EPS will host a telephone or video conference meeting to kick off the study, with the following
topics to be covered.
Data collection and staff contacts
Key questions to be addressed in the study
Any limited or targeted stakeholder outreach (e.g. the existing technical advisory
committee, and/or 4 to 6 community members engaged on this issue).
Confirmation of acquisition and utilization of data from other providers, such as
Destimetrics, AirDNA, and MuniRevs.
Develop a working definition of Dispersed STRs (STRs). This study should distinguish
between STRs and purpose built accommodations, such as hotels.
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b.Task 2: Spatial and Economic Activity Analysis
This task includes an analysis of available data on dispersed STRs and other accommodations in
Aspen. The purpose of this task is to identify and analyze citable data on STRs to inform policy
decisions. Based on initial conversations with City staff on available information, we expect to
cover the following areas in this task. If data are available for a longer time period than current
year or year-to-date, historical data will also be presented.
Baseline trends – Citywide trends in the total accommodations bed base, annual and
seasonal occupancy rates, and average daily rates (ADR).
Inventory and location – Total number of STRs tabulated and mapped citywide and by
area/neighborhood.
STR Unit characteristics – Housing unit types and age used as STRs
Economic characteristics – Estimated occupancy rates (days or weeks of occupancy),
average rental rates, and tax revenue generated from STRs.
Guest spending – Spending patterns of guests will be analyzed and compared to
traditional lodging types subject to available data. This is an important input to the Task
4 Nexus Study.
Rental income to owner – Estimated rental income to STR owners, analyzed by unit
characteristics and location.
Management type – Estimate the number of units managed by traditional property
management companies (but cross listed on STR sites) and by individuals.
COVID-19 effects – Strive to evaluate how the pandemic affected the lodging market,
and if STRs increased their market share compared to purpose built accommodations
(impact on hotel market).
c.Task 3: Housing Market Impacts
In this task, we will expand on the housing aspects covered in Task 2. EPS will develop an
analysis of home values citywide or by neighborhood and compare them to the value of units
used as STRs. The study addresses both Supply Side factors and Demand Side factors of the
economic equation and as part of the Supply Side evaluation, EPS will focus on impacts to the
housing inventory in this task by addressing the following questions:
How does STR use influence property values? How do values vary by area?
Are STRs powerful enough cash flow generators that buyers are purchasing homes on
expected cash flow rather than similar market values?
What is the spectrum of home values used as STRs? What portion of this inventory is or was
potentially available to local residents as rental or for-sale housing?
d.Task 4: Existing Survey and Peer Community Research (RRC)
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RRC has conducted numerous guest surveys in Aspen and other mountain resorts in Colorado
and the Intermountain West. Their data cover accommodations types, booking method, party
characteristics, and spending patterns. RRC will mine its data for relevant information on STR
use by guests, along with other relevant data such as Aspen sales tax collections and Aspen STR
inventory and occupancy patterns, in order to estimate aggregate spending in Aspen by STR
guests.
e.Task 5: STR Fee Nexus Study
The purpose of this task is to establish a nexus between STR use and affordable/ workforce
housing demand. The working assumption in this Scope of Work is that fee revenue would be
used for housing development or to fund housing programs such as buy downs. The nexus
study will address two categories of impact: one related to impacts to affordable housing, and
the other related to City costs incurred to administer STR programs (e.g. life safety inspections,
good neighbor enforcement, etc.).
EPS will explore two approaches in the affordable housing nexus study: an economic impact
approach, and a unit loss approach. We expect the first approach to be more effective because
it builds on an established methodology used in affordable housing linkage fee nexus studies
(affordable housing impact fees). The unit loss approach may be limited by the timeliness of
available data. Nonetheless, we expect useful trend and condition information to result from
the analysis in this Task and Task 2.
i.Economic Impact and Housing Demand Analysis
This analysis will build on the Aspen Residential Job Generation Update study underway
separately. An economic impact model (IMPLAN, a widely used input-output model) will be
used to estimate the jobs generated by STR guest spending.
Estimate workforce housing demand from STR visitor spending using the IMPLAN model
and EPS’S housing demand model to convert jobs by NAICS category to jobs by occupation
and corresponding household income.
Distinguish between the impacts of STRs and other lodging types and between local and
second homes.
Determine the housing demand by price point and the associated housing gaps.
Determine a method for converting housing gap costs into an annual fee.
Consider other fee uses such as housing programs and adjust the nexus methodology as
needed.
Develop a recommended regulatory fee for addressing the affordable housing impacts of
STRs.
ii.Impact of Housing Inventory Loss
The analysis in Tasks 2 and 3 may allow us to develop mathematical relationships between STR
use and year-round housing inventory loss, in other words, the degree to which housing costs
increase as the supply for local’s housing decreases. There are differ ent approaches to the way
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these relationships can be quantified in the data. Because price volatility and appreciation
rates are subject to many factors (such as out-of-region equity investors), the relationships
between supply and demand will need to be tested. We will explore the data to determine if
another approach like this can be used to establish a nexus between STR use and
affordable/workforce housing needs.
iii.Impacts to City government
The City of Aspen is likely to incur governmental/staff costs in conjunction with the regulation
of STRs, e.g. with regards to life safety inspections, good neighbor enforcement, etc. The nexus
analysis would also quantify the relationship between these costs and STRs, and develop a
regulatory fee to offset the city’s costs.
iv.Transportation impacts will not be addressed at this time
Due to data limitations, we do not anticipate conducting a transportation nexus analysis at the
present time. The transportation impacts of STRs (e.g. in terms of guest use of STRs and ST R
servicing needs such as housekeeping) may require the addition of a transportation specialist to
the team to estimate STR trip generation. Should this type of analysis be a priority to the City,
we could explore options to address this as an addendum to this scope of work.
f.Task 6: Draft and Final Reports
EPS and RRC will prepare a draft report to document the information collected, methodology,
analysis, and process used to develop the supportable STR fees. Following review and comment
from Town staff, EPS will revise the document accordingly and be prepared to present and/or
discuss the findings at a scheduled meeting.
g.Task 7: Town Process and Meetings (Time plus direct cost)
EPS can present findings or progress updates to any Town commissions or elected or appointed
bodies. In addition to progress and project management meetings with Staff , we have budgeted
for two in-person public meetings in Aspen.
Proposed timeline
We understand that the highest priority is Task 5 – STR nexus fee study. Numeric results of the
nexus fee study would be needed by mid-April in order for ordinances to be crafted ahead of
the moratorium expiration in June. The full report on the nexus analysis could be completed
later, but before June 8.
The other tasks have less urgent timing, but ideally would also be completed by June 8.
The below schedule provides a target schedule for the completion of the tasks.
Table 1. Residential Employment Generation Schedule
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Task
March
16-31
April
1-15
April
16-30
May
1-15
May
16-31
Task 1 – Project initiation and data collection X
Task 2 – Spatial and economic activity analysis X X X X X
Task 3 – Housing market impacts X X X X X
Task 4 – Existing survey and peer community research X X X X X
Task 5 – STR fee nexus study X X X
Task 6 – Draft and final reports X X X
Task 7 – Town process and meetings X X X X
The graphic to follow, excerpted from staff’s Proposed Action Plan discussed at the February 1
Council meeting, shows the anticipated timeline for the completion of the efforts.
Figure 1. City of Aspen Proposed Action Plan Project Timeline (as of 2/1/2022)
Estimated Costs and Billing Rates
EPS and RRC agree to complete the scope of work on a time and materials basis not to exceed
$77,000. The approximate allocation of budget by firm is as follows:
Economic & Planning Systems $53,500
RRC Associates $23,500
Total Budget $77,000
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Hourly billing rates include the following:
Andrew Knudtsen, Managing Principal, EPS: approximately $240/hour
Brian Duffany, Principal, EPS: approximately $200/hour
Rachel Shindman, Vice President, EPS: approximately $160/hour
David Becher, Director of Research, RRC Associates: $150/hour
Other staff: $60 - $120/hour
Conclusion
Thank you for the opportunity to submit this proposal. We would be happy to discuss and adjust
this proposal as needed if there are any modifications that wou ld best meet the City’s needs,
and/or begin proceeding on the quantified work items above as outlined. We look forward to
working with you.
Sincerely,
David Becher Andrew Knudtsen
Director of Research, RRC Associates Managing Principal, EPS
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ROUTING SLIP Revision 12/08/2021
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ROUTING SLIP
Project Information
Project Name Ordinances 26, 27 and 6 – Residential and Short tTerm Rental Moratorium
Project Number 2022-097
Capital Project Number
Project Manager Ben Anderson
Department Community Development Department
Estimated Cost $77,000 – Not to Exceed
Budgeted Amount
Account Codes
Project Description
Give clear description of the
project, work to be done, or
items purchased
Economic and Planning Systems (EPS), with a sub-contractor RRC
Associates will conduct an analysis of several aspects of Aspen’s short-
term rental contex and will importantly and most immediately study the
employee gernation impacts of STRs. The project is happening on a
compressed timeline.
Vendor Selection Process
Describe how vendor was
seleted
The EPS/RRC team is uniquely positioned in the research and analysis
industry to provide this service to the City. They have worked with
several other peer communities in Colorado and the Mountain West on
this kind of analysis – and additionally, due to previous work with Aspen,
Pitkin County and other projects in the Roaring Fork Valley hold a very
sound understanding of Aspen’s context.
Contract Value
Sole Source & State Bid Dept. Head Signature
Procurement Officer Signature
City Attorney Signature
City Manager Signature
Resolution: Meeting Date &
Number
(Required for Contracts
$50,000 +)
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Contracts Up To $24,999 Dept. Head Signature
City Attorney (Depending on
Contract Template)
Signature
Contracts Over $25,000 to
$49,999
Dept. Head Signature
Procurement Officer Signature
City Attorney Signature
City Manager
Signature On Contract Only
Contracts over $50,000 & Up Dept. Head Signature
Procurement Officer Signature
City Attorney Signature
City Manager
On Contract Once Vendor Signs &
Council Resolution Adopted
Resolution Date & Number:
Emergency Procurement
In the case of an emergency which threatens the public health, welfare, or safety requiring the
immediate purchase of a supply, service or construction, the City Manager shall have the power to
authorize the Procurement Officer to secure the necessary items or service in the open market without
competition regardless of the amount of expenditure. In no event, shall the contract price exceed
commercially reasonable prices.
Date March 17, 2022
Supplier Selected Econonomic and Planning Systems (EPS)
Contract Amount $77,000
Emergency
Conditions/Situation
Ordinance #26, 27, Series of 2021 and 6 of Series of 2022
If over $50,000 Memo to Council Date
Approval Requirements Dept. Head Signature
Procurement Officer Signature
City Attorney Signature
City Manager Signature
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INFORMATIONAL MEMORANDUM
TO: Mayor Torre and Aspen City Council
FROM: Perry Kleespies, Capital Asset, Sr. Project Manager
THROUGH: Robert Schober, Capital Asset, Director
MEMO DATE: April 6, 2022
RE: Wheeler Opera House Phase 2 Remobilization
SUMMARY:
This memorandum is to inform you construction crews will remobilize on April 11, 2022
to complete the Wheeler Opera House masonry repairs. This includes all outstanding
items on the South elevation, along with all proposed work on the West elevation and
alley side of the building. Scaffolding will be installed April 12-13, 2022 on the Hyman side
of the building and around the front entrance to the restaurant, and approximately seven
feet down Mill Street. The scaffolding is required to finish the stone replacement.
As soon as the scaffolding is down, there will be brick repair and replacement on west
and alley side of the building. A lift will be used to complete the brick work on these
elevations.
The existing parapet cap must be removed on the west side of the building to repair the
upper course of brick. It was determined that the best strategy was to replace the existing
parapet cap if it had to be removed. The railing that sits on top of the parapet cap on the
roof will also be removed, repainted, and re-installed. While the railing is down, it will be
extended past the roof hatch to the north to provide additional safety.
All masonry repairs and scaffolding removal is scheduled to be complete by June 30th,
2022.
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