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HomeMy WebLinkAboutagenda.council.worksession.20220919AGENDA CITY COUNCIL WORK SESSION September 19, 2022 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A Childcare - Council Goal: Childcare Capacity Goal Update I.B Short-term Rental 'Run-out' Period I.C Council Board Reports and Council Updates Zoom Meeting Instructions Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://us06web.zoom.us/j/85306367158? pwd=akdLUFVOd2pENHNaTFJaTG15RG5Vdz09 Passcode: 81611 Or join by phone: Dial: US: +1 346 248 7799 Webinar ID: 853 0636 7158 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kddtA3uX4r Council__memo_9.19.22.docx Attachment A _August 22 work session summary.pdf Attachment B_Final Burlingame Ranch Center Report Aug 2022.pdf Attachment C_TOSV_Town_Council_mtg__8.15.22.pdf Memo_STR_Run-out_Work_Session_FINAL.docx Exhibit A_Summary of Responses.pdf Exhibit B_ Ordinance #09 Series of 2022.pdf 1 Page 1 of 6 MEMORANDUM TO: Aspen City Council FROM: Shirley Ritter, Director, Kids First THRU: Sara Ott, City Manager, Diane Foster, Assistant City Manager Scott Miller, Assistant City Manager MEETING DATE:September 19, 2022 RE:City Council’s Childcare Capacity Goal Summary PURPOSE: The purpose of this memo is to provide an update for achieving City Council’s Critical 2-year childcare capacity goal. SUMMARY & BACKGROUND: On August 10, 2021, City Council adopted Resolution #76_Series 2021, which directed staff to increase the number of available childcare spaces. This will be accomplished through: 1.Plan, design to repurpose or build new buildings to add physical capacity to increase available childcare space. 2.Increase the recruitment and retention of qualified early childhood teachers. 3.Generate funding to support the development of new childcare spaces. This goal runs for two years, with an expected completion date of July 2023. This is a short timeframe to accomplish this overall goal; however, the next two years will include measurable steps to show accomplishments that are achievable. The need to expand childcare capacity has been an ongoing part of Kids First’s mission. This City Council goal provides added support and a clear path to achieve this goal. This goal includes five key workplan areas with activities that will happen for the next two years. These elements are: 1.Planning and Design for a new childcare building, 2.Recruitment and Retention of early childhood workforce, 3.Funding to meet the community need for early childhood, 4.Policy, 5.Long-range Planning. 2 Page 2 of 6 In previous work sessions staff has provided an overview of goal workplan areas. We got council majority consensus in two areas: 1. Kids First staff is to continue coordination and communication to find regional solutions, with other partners participating in-kind. 2. Kids First staff will consider funding sources and budget adjustments to reduce the cost of housing for childcare staff. With regard to Burlingame, staff will consider multi-family development as part of the program. Council gave staff direction to continue with next steps in these areas: 1. Staff is directed to research the ability to change the sales tax allocation ratio, preserving the 55% childcare/ 45% housing development. Diane, Pete and Shirley will bring information and a recommendation to city council during budget work sessions. 2. Staff is directed to consider regional models such as RFTA and Housing Alliance. Shirley and Kids First staff will continue to participate in regional efforts to fund and find solutions to the childcare capacity issue. Staff will bring information on this to the September 19 work session. Shirley and Jennifer will communicate about Burlingame progress to regional partners. These steps will be the focus of our discussion today. Staff has also shared information about capacity, waitlists, classroom spaces in the Yellow Brick Building and CMC, and we will provide updates on these items as well. In addition to city staff, I am joined by Ashley Perl, Community Resiliency Manager with Pitkin County, and Stacy Petty, Director of the Rocky Mountain Early Childhood Council. 1. Planning and Design for a new childcare building An infant childcare room at Colorado Mountain College (CMC) renovation in the classroom is complete. Equipment and furnishings are in place. The IGA approved last year is in place and a lease has been created for the space. Burlingame Early Childhood Center was discussed at a work session on August 22, with agreement to continue development of the hillside concept to the schematic design stage. That work session summary is attachment A Policy Question – Does council support the staff recommendation to continue the Burlingame Early Childhood Center to 100% schematic and then pause the project? Kids First has also received the final planning report from Kate Kalstein, supporting the vision and values for the Burlingame Ranch Childcare Center, as well as resources for funding, shared messaging, and business model viability. That executive summary is attachment B Classrooms in the Yellow Brick Building are still available, and the RFP is still open for this space. We continue to engage with the community to explore options for re-opening this space. Depending on the outcome of our conversation this evening, we expect more interest in this space. Related updates: The Town of Snowmass Village held a work session to consider the report from consultants regarding the expansion of childcare. The report included 3 options for use of existing and potential new space, discussed the need for childcare, and recommended year-round, full-day care for residents and workers, especially for infants. This presentation is attachment C The Town of Basalt has two projects in development. The first project at Stotts Mill has the foundation poured for the childcare center, there is currently operator contracted for the space. The second is Willets Parcel 2e, Blue Lake Preschool is working with the design team and fund raising for this project. 3 Page 3 of 6 DISCUSSION:Recruitment and Retention of early childhood workforce Support for early childhood workforce capacity – revised dedicated sales tax split. Staff recommendation is to allocate 75% of the fund to childcare for workforce capacity supports. Kids First Advisory Board recommendation is to allocate up to 100% with the additional funding used to purchase housing for childcare staff. Members recognize that housing is also a critical city council goal. Housing development, however, has other sources of funding while childcare relies entirely on the sales tax funding. They also feel that this would still meet the council goal of creating housing, in this case for an essential workforce that is a vital part of the economic infrastructure in our community. Programs and services to accomplish this are outlined below. Policy Question: 1. Does council support changing the sales tax split? 2. What level of change does council support? Sales tax calculations from the Finance Department: Current Allocation:Option 1:Option 2:Option 3:Option 4: Affordable Housing $2,068,237 45%$1,838,428 40%$1,149,017 25%$919,214 20%$229,803 5% Childcare $2,527,832 55%$2,757,642 60%$3,447,052 75%$3,676,855 80%$4,366,266 95% Total 2021 Collections:$4,596,069 $4,596,069 $4,596,069 $4,596,069 $4,596,069 Increase to Childcare $229,810 $949,220 $1,149,024 $1,838,434 Council members have urged staff to consider ways to provide support to childcare staff that will increase recruitment and retention of qualified staff.This is a current barrier to maintaining existing programs, and to any expansion of physical childcare space. This is also driven by the city council critical goal to increase childcare capacity to meet the community need and is seen as both an urgent and a long-term challenge. Working in partnership with the Finance Department, City Manager’s office, childcare programs, and other community partners, staff is proposing a multi-pronged approach that will benefit the most people most immediately. Programming summary to support early childhood education staff include: Proposed Program Funding mechanism Estimated allocation 1.Wage enhancement funding to increase the ability for childcare staff to afford to live near the community in which they work. This is estimated based on $500 per FTE, Will be included in 2023 supplemental budget request if approved. $600,000 4 Page 4 of 6 per month. This amount decreases over out years with increased tuition providing the funding. Kids First financial aid will increase to support qualifying families. 2.Financial aid increases to support families, both maximum income allowed, and percentage paid by Kids First. Increase will impact current operational budget. Estimate will be available for budget work session. 3.Director supports –training, coaching specific to financial planning, HR functions and more tailored to each program. Will be included in 2023 supplemental budget request if approved. $ 25,000 4.Yellow Brick Building rent decrease –no rent Decrease will impact current operational budget. $145,000 5.Two additional Early childhood teacher interns Will be included in 2023 supplemental budget request if approved. $154,820 6.Capital investment in childcare staff housing Funding from Kids First reserve fund, and from supplemental if approved at Kids First Advisory Board recommended level. $1,000,000 - $1,500,000 7.Capital program grants to increase capacity, buy or renovate existing buildings Increase will impact current operational budget. Unknown at this time. 8.Waitlist online platform (BridgeCare) to provide easier access to families needing care, more efficient ability to fill spaces for programs, and more accurate data for Kids First. Purchased by Rocky Mountain Early Childhood Council Kids First will support marketing this new platform. 1. Wage enhancement funding to increase the ability for Pitkin County licensed childcare staff to afford to live near the community in which they work. 2. Kids First financial aid will increase to support qualifying families. Adjustments to both the maximum family income to qualify, and the percentage of support a family qualifies for are both being tested to be able to find the amount that best supports families and childcare programs and is equitable. Kids First Advisory Board and staff also need to consider the impact the new statewide Universal Pre-K funding (UPK) will have for families, and for our financial aid program. UPK will fund 10 hours of preschool for all 4-year-old children in Colorado. This funding and how it works together with Kids First financial aid will have consequences for families and programs. 3. Director Supports - Part of this proposal is the use of early childhood financial experts to provide training and coaching to support budget development and management in a business that is a broken business model. Childcare programs rely on parent tuition, grants, and fundraising to operate. At the same time staff related expenses are often 80% or more of their 5 Page 5 of 6 overall expenses. This creates a situation that requires a high level of expertise and oversight since there is often little or no cushion to fall back on if enrollment drops suddenly, costly repairs are needed urgently, or a pandemic happens. Kids First will also offer directors expert coaching in other management areas that are specific to each program and director. Directors have very diverse roles, many are supervising staff, while managing the budget, or needing to be in a classroom to cover for a teacher, then make sure the plumbing isn’t backed up, and maybe sit with a sick child until a parent comes. Most of us in management roles have benefitted tremendously by having a mentor to offer support. Research has shown that Directors are the key to program quality, staff retention, parent satisfaction, and even the sustainability of the program. 4.Yellow Brick Building Rent - Staff is recommending that to increase capacity in existing buildings, that rent will no longer be charged in the Yellow Brick Building. Programs will still be expected to pay for utilities and be mindful users of resources such as water, gas, electricity, and trash services. Programs will be asked to demonstrate how the money saved in rent will be used to support staff recruitment and retention. The city currently pays for all major capital improvements in the building and subsidizes the operations and maintenance; this will increase this benefit to childcare tenants substantially. This will also make it more conducive for a new program to serve infants and toddlers in the available classrooms. 5.Early Childhood Techer Interns - Staff is excited to expand our early childhood teacher intern program and be able to provide more people with higher qualifications to work in our local early childhood programs. The Kids First interns will gain experience by substituting in a variety of local childcare programs, while taking classes and receiving coaching by Kids First staff. This has been successful, and we plan to continue and expand this success. The position is paid, is termed at no longer than one year, but would be budgeted to be ongoing and repeat as long as there is a need. 6.Childcare staff housing - Kids First Advisory Board recommends purchasing housing for childcare staff so that an inventory of rental units is available to support recruitment of new staff or changing needs of existing staff. 7.Capital expansion funding - Childcare programs will be encouraged to explore capital expansion that will allow for increase capacity. Kids First Advisory Board will review requests for capital grants as opportunities become available. Kids First staff will also work with the Rocky Mountain Early Childhood Council and childcare providers to access state and philanthropic funding for this purpose. Policy and Planning to Support Childcare Capacity 8.Waitlist online platform - Development of a community-wide waitlist platform: The Rocky Mountain Early Childhood Council (RMECC) has signed a contract with BridgeCare. BridgeCare is a user-friendly, web-based tool that connects local families with available childcare openings. It also allows providers to market their programs, highlight their services and staff, and manage enrollment. 6 Page 6 of 6 This platform will be used to support programs and families across our 4-county region. RMECC and partner agencies including Kids First, will be able to have access to data regarding childcare openings, unduplicated counts of children on waitlists, and will also be used as the platform for families to apply for Universal Preschool funding. Programs will be able to provide regular updates regarding openings and will be able to manage waitlists. Families will be able to easily search for available childcare openings that fit their needs. This platform continues to grow and develop in partnership with our Councilas well as the Colorado Department of Early Childhood. We are working closely with BridgeCare staff to launch as soon as possible. Our current timeline is to launch the system to programs the end of September; once programs are familiar with the software and provide their information, we will launch to families. VIP awards to childcare staff have been revised, with additional ways to increase their skills and earn points added. This application will go out to all childcare programs on December 1 to earn their second award for 2022. Individuals can earn points that will result in awards up to $1,500 for this 6-month period. Kids First is offering a $1,500 hiring bonus to childcare staff. Childcare staff can access this bonus when they are hired, starting in August 2022. FINANCIAL IMPACTS: Staff will continue to work with the Finance Department and City Manager’s office to have more programmatic and financial detail for council at our October Budget work session. RECOMMENDATION: Policy questions for council 1. Burlingame Early Childhood Center – does council agree to complete schematic design, then pause for more information before construction phase? 2. Does council agree to modify the critical childcare capacity goal to focus more at this time on childcare staff recruitment and retention, item 2 on the work plan? 3. Does council support changing the sales tax split? What level of change does council support? 4. Is City Council supportive of eliminating rent charges at the Yellow Brick, while still charging proportionally for utilities and trash/recycling services? 5. While no specific purchase targets have been identified, does the Council support the acquisition of housing for early childhood educators? Staff recommends the above changes for city council approval. Alternatives include making no changes to the sales tax split, continuing the course on the Burlingame Early Childhood Center capital project and making no changes in programming. Other alternatives would include staff direction to return with different recommendations and funding solutions. EXHIBITS: A. August 22, 2022 work session summary B. Burlingame Early Childhood Center consultant report C. Town of Snowmass Village Childcare feasibility report 7 1 FOLLOW-UP MEMORANDUM CITY COUNCIL WORK SESSION MEETING DATE: August 22, 2022 FOLLOW-UP MEMO DATE: August 25, 2022 AGENDA TOPIC: City Council Critical Goal – Design Direction on Burlingame Early Childhood Education (ECE) Center PRESENTED BY: Jennifer Phelan, Development Manager COUNCIL MEMBERS PRESENT: Mayor Torre, Councilmembers Ward Hauenstein, Rachael Richards, John Doyle, Skippy Mesirow ______________________________________________________________________ WORK SESSION DISCUSSION SUMMARY: Staff provided background on the project and an overview of how the site programming was developed, where concepts advanced to two designs: Hillside (separate childcare building and housing building with surface parking) and Streetside (combined childcare and housing building with surface and structured parking). Staff also highlighted the public outreach undertaken for the project (open houses, Aspen Community Voice, CoA 2022 Community Survey). Staff requested direction on which concept to further to schematic design. 1. Topic: Which design concept should progress to schematic design? Council majority consensus: Continue development of the Hillside concept to schematic design. 2. Topic: Childcare demand was discussed and interest in understanding what the current level of need is and what it will be over time. Council majority consensus: Provide more data on childcare capacity needs. 3. Topic: Somewhat related to understanding the need for additional capacity, questions were raised on how to staff the facility and the parameters around development of housing at Burlingame beyond the existing development cap allowed in the subdivision. Council majority consensus: Provide more information on staffing needs for the facility and the process to increase the housing unit cap. 4. Topic: Discussing the site plan, council still showed interest in the development of multi-family residential as part of the project, recognizing that there is a density cap for the subdivision that would need to be amended. 8 2 Council majority consensus: Continue development of multi-family housing to schematic. NEXT STEPS: Staff will be working with the design team and Design Advisory Group to further the Hillside concept to schematic design. Schematic design is anticipated to be ready for council review in November/December. This section outlines next steps for staff and Council on the topic(s) described above. 1. Staff is directed to research and quantify the additional need/demand for childcare capacity now and in the future. 2. Staff is directed to outline the staffing implications of the facility. 3. Staff is directed to provide more detail on the process to engage the HOA in any density increase for housing units at Burlingame. 4. Staff will continue to look at high level options to value engineer the project and weigh the costs vs. benefits related to those decisions (for example getting to net zero vs. highly efficient, etc.). 5. The design team will continue to develop multi -family housing for schematic design. CITY MANAGER NOTES: __________________________________________________________________ __________________________________________________________________ ____________________________________________________________ 9 Burlingame Ranch Child Care Center Planning Report: Executive Summary August 2022 Introduction 2 Child Care Settings in Colorado and Early Childhood Professional Workforce 2 The Burlingame Ranch Community and Child Care Center Opportunity 2 Center Vision & Values 3 The planning group envisions a Burlingame Ranch Child Care Center that seeks to provide aordable, inclusive, high quality, early childhood learning and development experiences to meet the needs of working families in the City of Aspen. This especially includes oerings for infant and toddler care.3 The vision of the Burlingame Ranch Child Care Center is a thriving community where each child is supported to learn and grow, each family is connected to tools and information for wellbeing (including the ability to work), and partnerships cultivate success.3 Center Overview 4 Funding and Business Model Viability 6 Fundraising Plan, Communications, and Key Messages 7 Conclusion 8 Resource Links 10 10 Introduction Kids First has convened a broad community wide collaborative conversation focused on enhancing child care capacity over the last several years. The convenings include private employers (Aspen Skiing Company, Alpine Bank, and Aspen Valley Hospital), governmental partners (Pitkin County and other City of Aspen sta), Aspen School District, Aspen Community Foundation, and nonprot partners (including Aspen Chamber of Commerce and Rocky Mountain Early Childhood Council). This diversity of perspectives and connections to the community allowed the group to identify key community assets and needs relative to child care for those who live and work in Aspen. Aspen City Council, Kids First, and the Burlingame Ranch Child Care Planning Group share a common priority: increasing child care capacity (including more center based classrooms) within the City of Aspen. Inadequate care for children under 5 has been routinely noted as a concern for families in the area, including 25% of families citing this concern in a 2021 regional assessment and that only 3 Pitkin county licensed providers serve infants. While birth rate in Pitkin County remains consistent (about 140 per year), overall workforce and housing issues likely inuence the proportion of families within the community, percentage of families who need care, average distance traveled between home and work, and other aordability factors that inuence the number of children in need of care within the City of Aspen in any given year. The entire Roaring Fork Valley ecosystem (Aspen to Parachute) demonstrates a level of interconnectedness well beyond that of many similar communities. Housing, transportation, healthcare, education, and child care access costs impact where local community members live and work. Employers note that many parents and caregivers continue to face child care challenges related to disruptions from the COVID-19 pandemic. Child Care Settings in Colorado and Early Childhood Professional Workforce The Burlingame Ranch Community and Child Care Center Opportunity The City of Aspen has dedicated space within the Burlingame Ranch Community for additional child care capacity in support of their 2021 priority. In partnership with the Burlingame Ranch Child Care Planning Group, Kids First seeks to support development of a child care center to meet the needs of those who live and work within the City of Aspen. The Burlingame Ranch Child Care Center will be operated similarly to the current model at the Yellow Brick Building: Kids First will partner with a child care operator who retains responsibility for the programmatic design, stang, enrollment, and 11 other operational elements. This report seeks to outline the vision of the planning group but does not create a required structure for the anticipated center. The planning group is not likely to have a formal role going forward. The planning group recommends that a dedicated fundraising consultant should be hired to support the next phase of planning to support applications for grants and other funding opportunities as well as the broader campaign that will be necessary to support development of the center. Members of the planning group are likely to continue to support eorts to enhance child care capacity within the City of Aspen, and some may have capacity to support fundraising eorts for the Burlingame Ranch Child Care Center. It should be noted that the perspectives of the planning group mirrored those of the 2021 Community Survey oered by Kids First (which included 115 responses within the City of Aspen) as well as many community stakeholder comments as well. These perspectives with community research and research-based models were used to shape the center overview presented below. Center Vision & Values The planning group envisions a Burlingame Ranch Child Care Center that seeks to provide aordable,inclusive,high quality,early childhood learning and development experiences to meet the needs of working families in the City of Aspen.This especially includes oerings for infant and toddler care. The planning group hopes the Center will be able to support as many children and families as possible to help ensure each child in care within the City has access to developmentally appropriate high quality learning experience and social emotional support for both children and caregivers. The vision of the Burlingame Ranch Child Care Center is a thriving community where each child is supported to learn and grow,each family is connected to tools and information for wellbeing (including the ability to work), and partnerships cultivate success. 12 The Burlingame Ranch Child Care Center should support values including: ●Inclusion ●Diversity ●Honesty ●We are stronger and more eective working in partnership, including utilizing resources and referrals to connect to wrap around supports. ●Responsive to community need ●Curiosity and exploration for children and adults ●Community choice within a spectrum of early childhood care options Center Overview Kids First and the planning group hope the Burlingame Ranch Child Care Center can provide aordable and high-quality early childhood learning experiences accessible to all children for those who live and work in the City of Aspen. The Center is anticipated to include two infant, two toddler, and three preschool classrooms. Additional spaces will provide for administrative oce space, a nursing area, small conference room for individual meetings and therapy sessions, as well as a large exible classroom available for both gross motor activities for children as well as larger meetings when needed. While ultimately the specic curriculum and program design will be responsibilities of the operating partner, it should be noted that planning group hopes the center will be progressive/ constructivist, whole child focused, responsive to the needs of both children and their families, focused on providing and/or connecting to social-emotional learning, screening and referral services and support. The program will have an opportunity to maximize funding opportunities through program design aligned to Colorado Shines and Universal PreK curriculum requirements. The program should make every eort to support the needs of all children including partnerships to provide robust support services including mental health and other therapeutic services. Given the high priorities for inclusion and serving a diverse group of children (and families), the planning group hopes that the center can nd innovative ways to support barriers to aordability. Many families who work in Aspen face challenges related to the intersection of low-income wages and average monthly center based child care rates. Additionally, these same families face barriers related to housing costs, transportation, work hours (and the needs for care outside of 9a – 3p). To support the entire early childhood community ecosystem, the center should explore innovative support for individuals who are interested in a career in early childhood education by providing 13 professional development, training, and educational and instructional support to achieve the high-quality experiences envisioned for the center. The professional development component of the center is envisioned to cultivate opportunities in early childhood careers and include other professional development focus areas as needed (administrative, etc.). Another signicant aordability barrier impacts early childhood professionals whose wages often do not provide sucient family income to make housing in or near the City of Aspen accessible. As a result the number of workforce candidates is limited, and those sta who do provide child care within the City of Aspen often drive well over an hour one way from their homes. Innovative solutions to increase housing aordability for early childhood professionals will be another critical opportunity to ensure long term success for the Burlingame Ranch Child Care Center as well as the broader local Aspen child care provider community. Planning group members and community stakeholders noted the need for both professional development opportunities for professionals already working in the early childhood sector as well as pathways opportunities to cultivate additional child care sector sta. Classes to support parents and caregivers were also noted as an opportunity by the planning group as current opportunities are limited relative to support for growth and support for caregivers. These oerings might include information on child development, social emotional skill building, and support for caregivers. Planning group members and community partners also emphasized the need for the center to provide a fully inclusive and welcoming culture to meet the needs of all community members. Culturally competent practices should be reected throughout communications from the earliest outreach and information through daily programming. Application and enrollment processes will be determined by the operator partner, but the planning group hopes that priority can be provided for prioritization of those with highest need in the community including nancial need, working parents, and children with needs not met in other child care settings. Finally planning stakeholders clearly prefer the center to oer full year (12 month) enrollment with evening, weekend and backup care options as possible (rather than academic year schedules with separate summer enrollment). It should be noted that most community providers do not utilize the full year enrollment model, and some noted that evening and weekend oerings were rarely utilized by families. 14 Funding and Business Model Viability Funding the development of the Burlingame Ranch Child Care Center will include two phases: the physical build out and programmatic launch. Given the scale of the project and amount of funds required to build out the space and prepare for the child care center, dedicated fundraising support will be required to cultivate the resources necessary and provide ongoing project support. The summer 2022 estimate for total cost to develop the center is approx. $15 million to include physical build out, fundraising eorts, and programmatic launch funding. Cost estimates include $10-15 million for the physical build out, up to $250,000 for stang and materials to support fund development including communications and community engagement for the next three years, and up to $125,000 to support leadership planning and materials to support highest quality learning experiences within each classroom (and the center as a whole) for a short transition period as the center opens. The center will likely need to expand oerings over time to ensure nancial viability from the time of opening within the constraints of the currently available early childhood workforce. With appropriate sta in place, it may be possible for the center to expand beyond core hours to include early drop o and late pick up to meet the needs of working parents. The planning group also hopes that backup and emergency care (drop in availability) can be oered, but expects to prioritize full time, weekday schedules to ensure continued viability for the center. It is likely that core programming hours will support development and educational goals while extended care hours will be available to support working parents. It should be noted that the lack of consistently available evening and weekend child care oerings have contributed to low utilization rates. Employee feedback suggests that since center based evening and weekend options have been rare; they have been forced to identify alternative care plans for their families. While employees have found care, it is often not ideal or their priority choice. Consistent, high quality aordable care options would enable more employees to commit to evening and weekend schedules with certainty. It will also be important for the center to maintain a mix of infant and toddler classrooms alongside preschool classrooms for long term sustainability. The lower sta to child ratios necessary for highest quality infant and toddler care and education result in higher average expenses per classroom/child when compared to preschool classrooms. By maintaining a mix overall family aordability can be maintained to support the center. A full range of infant through preschool classrooms also supports the planning group and community stakeholder preference around continuity of care, children being able to remain in the same child care center over a period of years without transition. 15 The center should also work to maximize funding opportunities from state and local programs (including current stimulus funded opportunities), meet licensing requirements as soon as possible in order to access licensing-based funding, secure Colorado Shines Quality Improvement (CSQI, typically ratings occur within 18-24 months of opening, utilize business coaching through the Department of Early Childhood, and access additional coaching through partnership with Kids First. Each of these elements will help the center to receive all available nancial support and maintain a strong business model to support a sustainable high-quality center. The center should be able to maintain aordability for families through partnerships that could include CCCAP, Colorado Preschool Program, Kids First, and sliding scale or other internal scholarships for families. The fall 2023 addition of universal preschool funding for all children in Colorado (10 hours per week per student) will also provide an additional funding stream to support the center. Another opportunity to support sustainability for the center operating model can be found by clearly identifying the costs associated with maintaining a safe, healthy, and well-functioning space. Responsibility for the ongoing facility related expenses should be clearly dened. While maintaining aordability will be key to meet the needs of the community, it is also critical that the actual cost of care (vs. market rate) is charged for child care provided at the center. The cost of care provides sucient resources for the center to provide high-quality, developmentally appropriate, safe, and reliable care provided by a professionally compensated workforce. Most child care providers within Colorado do not charge cost of care which compromises their ability to pay competitive professional wages, recruit and retain the workforce needed to meet community need for child care services. Fundraising Plan, Communications, and Key Messages To raise the funds necessary to successfully build, plan, and launch the Burlingame Ranch Child Care Center a robust strategic fund development plan will be critical. The Funding Planning Report prepared by Mission Launch provides step by step guidance for this endeavor. A number of specic programs are currently oered to support enhanced child care capacity for Colorado communities including those noted here. A complete compilation of Funder Prospects has been prepared to support the fundraising campaign launch. As noted in the Funding Planning Report, the initial 50-70% of project funds are recommended to be raised in a “Quiet Phase.” During this time key messages should also be conrmed to cultivate community support as well as funding necessary for 16 the project. Guidance for the development of a campaign communications plan is included within the Funding Planning Report. Given the impact of COVID on the early childhood sector within the community, program closures, challenges for child care providers, and struggles for families to nd care that meets their needs - key messages should be carefully identied to promote positive change. The community is encouraged to draw from the Colorado Shared Message Bank. These research-based messages promote the need to invest in early childhood education, models to support all parts of the community ecosystem (families, providers, and other support professionals), and the impact of high quality early childhood experiences.Additional materials are available from the State of Colorado Department of Early Childhood emphasizing the importance of social emotional and mental health support for both young children and caregivers. It is likely that eorts to highlight goals of the planning group to support these supports will strongly resonate to cultivate community support. Conclusion A few key next steps will be critical as work continues to plan and develop the Burlingame Ranch Child Care Center: 1.Conrm key roles for community partners relative to the Burlingame Ranch Child Care Center project including Kids First sta, Kids First Advisory Board, Rocky Mountain Early Childhood Council, Pitkin County partners, local employers, and other stakeholders. Each partner should clearly dene their mission as well as goals relative to the early childhood ecosystem in the City of Aspen. Partners can share these mission/purpose statements as well as goals with one another.Partners should also dene how within their role in the community they can support the Burlingame Ranch Child Care Center. For example, can each partner identify a representative to continue collaboration with Kids First and other Valley wide early childhood initiatives; can each partner dene their needs relative to early childhood providers (specic schedules, locations, ages); and/or what resources can the partner contribute. 2.Continue to build a strong coalition of community partners to guide the project. Kids First sta and Advisory Board members should work with a coalition of community partners to rene and strengthen the center development plans (vision as well as design) based on evolving community needs and opportunities. This group should include content experts in early childhood, funding partners, cross sector members, and parents. 17 3.Conrm a detailed fund development and communications plan (embedded within this center plan). While the Burlingame Ranch Child Care Center will specically benet from this plan, Kids First can also use the communications plan and community engagement opportunity to strengthen relationships, educate the community, and cultivate support for a broad range of early childhood related eorts within the City of Aspen. 4.Identify a Fund Development and Communications Lead as well as committee members to support plan implementation.As noted in the Fundraising Planning Report, for a campaign of this size a dedicated sta or consultant support is strongly recommended. Committee members will be crucial for cultivating support and sharing key information. 5.Continue workforce development eorts to strengthen the pipeline of early childhood professionals available to work in the City of Aspen.Workforce emerged as the key concern and challenge facing the City of Aspen as eorts continue to increase child care capacity. Kids First and other community partnerships should continue strategic and innovative approaches to increasing the number of qualied early childhood professionals. Note:It will be critical for Kids First to work with Rocky Mountain Early Childhood Council and other community partners to inventory existing programs (and models) that currently are oered in the Roaring Fork Valley to support workforce development, recruitment and retention eorts. With clear understanding of existing oerings, support for enhanced professional development and workforce pathways can be strengthened and increased. 6.Strengthen systems to maintain more complete and accurate community information on a range of issues relevant to center planning:parental preference on child care setting, actual community capacity including licensed providers as well as informal/private nannies and other FFN, sta turnover and retention, number of types of qualied early childhood professionals, kinder readiness, social emotional wellbeing, number of parents who work in Aspen, and other critical elements. 7.Integrate the Burlingame Ranch Child Care Center into a comprehensive long range early childhood strategic vision (and implementation plan) for the City of Aspen. ___________________________ 18 Resource Links Kids First, City of Aspen Rocky Mountain Early Childhood Council Rocky Mountain Early Childhood Council 2020 Community Assessment Northwest Colorado Council of Governments 2021 Regional Assessment of Child Care Industry 19 Snowmass Village ECE Feasibility Project: Update II Presentation to Town Council August 15, 2022 Presented by: Rob McDaniel, MetrixIQ Andrew Brodsky, Brodsky Research and Consulting Cody Belzley, Common Good Consulting 08-15-22 TC Paket 15 of 164 20 Project Phases Needs Assessment complete Site Evaluation complete Budget Development complete Administrative Guidance August 08-15-22 TC Paket 16 of 164 21 Needs Assessment Highlights Current lack of access to child care in TOSV In Pitkin County, there are about 5 children under the age of 5 for each licensed slots (279 slots for 818 children). About 58% of these are higher quality (Colorado Shines level 3, 4, or 5). TOSV has only one childcare provider (Little Red Schoolhouse), which is currently licensed for 30 but typically enrolls 20 to 24 children Lack of licensed care for infants and toddlers only 3 locations in Pitkin County serve infants, with 39 licensed slots, and none in TOSV 08-15-22 TC Paket 17 of 164 22 Needs Assessment: Summary of Recommendations Expansion of capacity at LRSH is warranted –size / scope of expansion depends in part on what your goal is. Seek to serve TOSV residents and workers Year-round, full-day (8 hr) or extended day (10+ hr) programming priority; Weekend and holiday care during winter peak season would be major benefit –especially important to SkiCo employees Explore possibility of infant care Build dynamic spaces that can serve children of various ages to enable flexibility as enrollment changes year to year 08-15-22 TC Paket 18 of 164 23 Site Evaluation Purpose: Identify and cost out options for expanding child care on the Little Red School House site Key Considerations Priority for preserving/renovating the current historic structure Other structures replaced? Consider phased expansion approach What could you do short term and long term? How much could you build vs how much should you build (now vs tomorrow) future Child care only vs child care + housing, etc. Engaged GF Woods with on-the-ground experience and expertise Costs estimate base case is 5 classrooms 08-15-22 TC Paket 19 of 164 24 Budget Development: Re-development Alternatives Scenario A Refurbish LRSH Replace Auxiliary Bldg with similar structure Replace existing capacity with newer, safer, more functional space Scenario B Refurbish LRSH Replace Auxiliary Bldg w/expanded structure Expand child care capacity Scenario C Refurbish LRSH Replace Auxiliary Bldg w/expanded structure Add four (4) employee apartments Expand child care capacity Expand affordable housing inventory 08-15-22 TC Paket 20 of 164 25 Current Site Layout NORTH 08-15-22 TC Paket 21 of 164 26 Future Site Plan Alternatives (GF Woods) NORTH LRSH Expansion (B) Future Employee Housing (C) Auxiliary Structure (A)LRSH (A) 08-15-22 TC Paket 22 of 164 27 Scenario A: LRSH Refurb + Replacement Refurbish LRSH Demolish Auxilary Bldg Replace with Similarly Sized Facility Goal would be to replace current facilities with newer, safer and more functional space, but not to grow capacity We do not have precise measurements of existing auxiliary facilities, so square footage is estimated We do not have any conceptual drawings for how similarly sized facility could / should be reconfigured to maximize utility / benefit Could enhance play area and landscaping 08-15-22 TC Paket 23 of 164 28 Scenario B: LRSH Refurb + Expansion Refurbish LRSH Demolish Auxiliary Bldg Replace auxiliary bldg. with expanded child care facility: 6 total classrooms Additional office and storage space 4,400 sq.ft. to 9,100 (110% increase) Enhanced play area and landscaping (pricing not included) Estimated capital cost: $4.6 -$6.3 million 08-15-22 TC Paket 24 of 164 29 Scenario C: LRSH + Housing Expansion Refurbish LRSH Demolish Auxiliary Bldg Replace with expanded child care facility: 6 total classrooms Additional office and storage space 4,400 sq.ft. to 9,100 (110% increase) Enhanced play area and landscaping (pricing not included) Construct four (4) 1,000 sq.ft. employee housing units (2br, 1 ba) Estimated capital cost: $6.8 -$9.0 million 08-15-22 TC Paket 25 of 164 30 Capital Budget: Additional Costs Estimated Budget Design Services 10% of construction cost Landscaping $250,000 Contingency 25% of construction cost Sub-total: Known Additional + Contingency Scenario A $501,500 Scenario B $1,148,335 Scenario C $1,704,966 Known, Unknown Costs Plan for re-location during construction ?? Foundation -Structural engineering ?? Foundation –Incremental structural construction ?? 08-15-22 TC Paket 26 of 164 31 Capital Budget: Cost Summary SF $ / SF (GF Woods) $ / SF (25% contingency) Estimated Cost (GH Woods) Estimated Cost (incl. contingency)Scenario ALRSH 2,400 $375 $450 $900,000 $1,125,000 Auxiliary Bldg 2,000 $553 $665 $1,106,000 $1,332,500 SUBTOTAL 4,400 $464 $558 $2,006,000 $2,507,500 Additional Costs (excl. contingency) 1 $450,600 $500,750 TOTAL $2.5M $3.0M Scenario BLRSH 2,400 $375 $450 $900,000 $1,125,000 Auxiliary Bldg ---------- LRSH Expansion 6,705 $553 $665 $3,711,496 $4,634,831 SUBTOTAL 9,105 $464 $558 $4,611,496 $5,538,825 Additional Costs (excl. contingency) 1 $711,150 $825,983 TOTAL $5.3M $6.6M Scenario CLRSH 2,400 $375 $450 $900,000 $1,125,000 Auxiliary Bldg ---------- LRSH Expansion 6,705 $553 $665 $3,707,865 $4,634,831 Housing (4 apts) 2 4,000 $553 $665 $2,212,000 $2,765,000 SUBTOTAL 13,105 $494 $593 $6,819,865 $8,198,825 Additional Costs (excl. contingency) 1 $931,987 $1,102,483 TOTAL $7.8M $9.6M 1 Contingency included in increased cost/SF) 2 Approx. unit cost = $550,000 08-15-22 TC Paket 27 of 164 32 Important Construction Considerations Addressing the current parking area does the current asphalt area need to increase?GF Woods estimates do not account for a larger parking surface. Lead times on construction materials are lengthy, currently 3-4 months prior to breaking ground currently as lead times on structural steel, appliances, windows, hardware, mechanical/electrical items still come with a very lengthy lead time. What will the plan be fore the pre-school while the facility is under construction?Is there a need for a phased approach to this project to allow the historic structured to be renovated prior to the any other areas to allow that structure to partially house the pre-school while the other facility is being re-developed?Or does the town have a temp facility that could house the entire program while the site is being fully renovated? (second approach will be quicker and more efficient for all parties). Necessary research needs to be accounted for as it relates to the foundation of a new structure on this hillside.Will a deep foundation or how extensive of deep foundation be necessary? (caissons or micro-piles to mitigate the natural springs on the site) 08-15-22 TC Paket 28 of 164 33 Budget Development identify a financially sustainable business model for childcare operations at LRSH site Take into account start-up costs and ongoing operational costs Identify likely revenue sources (public and private) Consider costs to deliver care and likely revenue streams Incorporate findings from needs assessment and site evaluation phases 08-15-22 TC Paket 29 of 164 34 Operational Costs: Assumptions Operating costs based on actual operating costs for LRSH Thank you to Christina Holloway for invaluable time educating research team on local market and her business practices Staffing model drawn from Christina’s experience in TOSV Operating costs align national accreditation standards (NAEYC) –also equivalent to a Level 4 on the Colorado Shines quality rating scale Salaries based on current pay for LRSH teachers: Lead teachers: $27.50/hour = $47,457/year Assistant teachers: $23.00/hour = $39,691/year Operating costs also take into account: Administrative personnel Benefits such as health insurance Nonpersonnel costs such as materials and utilities Operating costs do not include: Capital construction costs Transportation 08-15-22 TC Paket 30 of 164 35 Operational Costs: Scenarios Two scenarios created: Scenario 1: Assumes 5 classrooms (1 infant, 1 low toddler, 1 high toddler, 2 preschool) Scenario 2: Assumes 8 classrooms (2 infant, 1 low toddler, 2 high toddler, 3 preschool Note: Scenarios created for illustrative purposes only not a specific recommendation! Teacher: child ratios and class size based on actual operating realities for high-quality care at LRSH: Infant room: 2 teachers, 8 children Young toddler room: 3 teachers, 10 children Older toddler room: 3 teachers, 12 children Preschool room: 3 teachers, 19 children 08-15-22 TC Paket 31 of 164 36 Operational Costs: Results Classrooms Age No. Classrooms No. Children Cost Per Child Total 5 Infant 1 8 $26,602 $212,816 Toddler 2 22 $21,337 $469,403 Preschool 2 38 $15,193 $577,315 TOTALS 5 68 $18,523 $1,259,534 8 Infant 2 16 $23,726 $379,616 Toddler 3 33 $18,542 $611,886 Preschool 3 57 $12,493 $712,101 TOTALS 8 106 $16,072 $1,703,603 08-15-22 TC Paket 32 of 164 37 City Council Work Session STR ‘Run-out’ Period September 12, 2022 Page 1 of 5 MEMORANDUM TO:Mayor Torre and Aspen City Council FROM:Haley Hart, Long-Range Planner THROUGH:Phillip Supino, Community Development Director MEMO DATE:September 12, 2022 MEETING DATE:September 19, 2022 RE:Council Work Session Short-term Rental ‘Run-out’ Period __________ REQUEST OF COUNCIL: Staff is providing information and research conducted on ‘run-out’ periods for short-term rental (STR) permits. Staff requests Council direction on their desire to address ‘run-out’ for STR permits upon a sale of a home. The result of this Work Session will determine if Council wishes staff to pursue a code amendment on this topic to the newly codified STR Regulations. SUMMARY AND BACKGROUND: On June 28, 2022, Council passed Ordinance #09, Series of 2022, included as Exhibit B, which created new STR regulations. The regulations include new definitions, a three- permit system, caps for STR-C permits, new permitting requirements, occupancy and operational standards, updated fees, active enforcement, and a non-transferability clause. The non-transferability requirements are central to the run-out discussion. During second reading on June 28th, public comment was received asking Council to consider a specific circumstance where a property with existing reservations for STR stays would be sold to another party prior to the commencement of the reserved rental dates. In response to these comments, Council directed staff to return at a later date with research results of what a ‘run-out’ period on STR permits upon a sale of a home might mean for the City’s STR permit non-transferability policy. Non-transferability of STR permits is a key feature of the new regulations – the most important element of which is the attrition model to reduce the number of STR-C permits over time. As read in the staff produced Short-term Rental Case Study, the research found that non-transferability clauses were a common and equitable practice in achieving attrition when a cap on the number of permits is in place. City Council directed staff to reduce the number of permits in Aspen by 25% from the existing number of approximately 1,300. The cap set in place by Ordinance #09, Series 2022, applies to STR-C permits 38 STR ‘Run-out’ Period September 12, 2022 Page 2 of 5 and decreases the number of STR-C permits in capped zones from 11% to 8% of the total number of residential units. Natural attrition through means of non-transferability will support achieving this goal. The City’s non-transferability clause states that STR permits may not be transferred to a new owner when a property sells or from one residential address to other. The language in Section 26.530.030.5 is as follows: Non-Transferability. Commencing October 1, 2022, STR permits shall be granted only for the property for which it is issued and solely to the permittee to whom it is issued. The permit shall not be transferable to any other person, legal entity, or residential address. If the property is owned by a partnership, corporation, association or company, a transfer shall be deemed to occur if the permittee transfers his or her interest in the property to a third-party individual or entity or if more than ten percent (10%) of the partnership, corporation, association, or company is transferred to a third-party individual or entity, even if the permittee retains an ownership interest in the property. Upon such transfer of ownership, the permit shall be deemed terminated and revoked and the new owner of the property shall be required to apply for a new STR permit if it wishes to continue the use of the property as a vacation rental. The STR permit shall include a non-transferability clause and notice that the permit shall be deemed terminated and revoked automatically upon the sale or change of ownership of the property for which a permit has been issued, as described herein. There is no cap on STR-C permits in the C-1, CC, L and CL zones, or on STR-OO and STR-LE permits. Although this regulation does apply to these permit types, un-capped classic, owner-occupied and lodge units may apply for and subsequently may be granted a new permit without being subject to the waitlist process. Only the STR-C permits within capped zones will be subject to a waitlist. Therefore, those permit types may be the only STR permits that will not be granted a permit within the 21-day timeframe of a completed application and if applicable, noticing period. The ‘run-out’ topic specifically relates to STR-C permits that are within capped zones. On June 28th, Council heard from operators of the STR community. The primary concern that STR operators communicated is the scenario of when a property has STR bookings far into the future, but the property is sold prior to the bookings commencing. STR operators feel that if bookings are canceled due to the non-transferabilty clause and waitlist, it will harm the reputation of both the booking agent and City. There are often financial concerns for STR operators and managers as well, whereby they may be held liable to the customers for losses incurred because a booked property is no longer available. The other consideration brought forward by operators is if a new owner does decide to continue with the prior bookings in honoring a contract for the bookings, without having an issued permit, that would violate the STR policy. The new owner would potentially be caught between the City’s regulation and the terms of a contract for the STR booking. When staff asked operators within the STR Technical Advisory Committee (TAC) the frequency of this challenge, there were two responses. One operator stated that in the 39 STR ‘Run-out’ Period September 12, 2022 Page 3 of 5 last three years this scenario had occurred approximately 10 times. The second operator stated that they were unaware of any such occurrences currently, but in the past, they typically have a short 30-60 days’ notice of an owner selling the unit; the number of times this scenario had occurred was not mentioned by the second operator. 10 occurrences out of the current 1,300 permits make this occurrence a percentage of 0.75% occurrences per permitted STRs within the past three years. Given the likely high number of annual bookings, that frequency is estimated to be significantly lower. Subsequent to the passage of Ordinance #09, staff contacted the communities interviewed for the STR Case Study Report. In response, out of the seven communities who instituted a non-transferability clause in their STR Policy and responded to the request, only one community, the Town of Breckenridge, responded that they institute a temporary six-month license to honor previous bookings. This is due to the high number of individually licensed condo-hotel rooms in their program and the frequency with which those units are booked and sold. Other responses included the acknowledgement that property owners should have a sense of when they wish to sell a unit and could choose to stop taking bookings, or to determine when a closing should occur to honor those bookings made by the owner and their representatives. The Town of Crested Butte responded that they have seen the owner and buyer negotiate a later closing date that allows the remaining summer or winter bookings to take place. The City of Ouray responded that many agents work with the previously made booking to find other units to place them in so that they may retain business and reputation. Other communities responded that the community is well informed on non-transferability and the topic has not been brought to City management, because there are very few complaints about non-transferability. With the exception of the Town of Breckenridge, other communities let the owner and buyer make the decisions that best fits the needs of the renter, and the City is not party to the discussion. In addition to staff’s outreach to the TAC and neighboring communities, staff contacted VRBO to discuss how third-party operators conduct business upon the sale of a rental property that they list and to understand how other municipalities respond. The VRBO representative informed staff that they are not party to honoring any reservations that were booked prior to a sale. VRBO leaves all decisions regarding prior booking to the seller and the buyer, and that most jurisdictions do not attempt to legislate this process. Verbatim responses from the TAC, neighboring communities and the VRBO representative are included as Exhibit A, Summary of Responses. STAFF DISCUSSION: Staff has devoted time to research best practices on non-transferabilty and its relationship to Council’s goals for the management of the STR permit program. Staff has also conducted internal research with the City departments that would be responsible for changing the code language and setting up an internal administrative system to implement a ‘run-out’ period. Legal, Finance and Community Development have discussed this policy alternative to the non-transferabilty clause and determined that for 40 STR ‘Run-out’ Period September 12, 2022 Page 4 of 5 a ‘run-out’ period to occur, a new, fourth, temporary permit would need to be created and issued. This is the only means by which a ‘run-out’ period could be accounted for while maintaining the City’s legal and regulatory position and not undermining the program. In contemplating the creation of a fourth, temporary permit, staff identified the following concerns: There are solutions available that do not require City intervention. Increased administrative workload to create and implement a fourth permit year- round. A new permit would need to be built within MUNIRevs which requires additional funding and a 10 to 12-week timeline for contracting and coding. Finance staff would need to develop a new system to gather information for taxes and fees during the ‘run-out’ period, which is distinctly different than an annual collection. Important regulatory compliance obligations such as HOA approval, inspections and noticing would need to be omitted from the temporary permit issuance process to meet the timeline needs of a new owner. Diversion of staff time to issue temporary permits would take resources away from the monitoring and enforcing of regulations for exiting permit holders. Inequity for applicants and permit holders who are in other stages of the permitting process due to the prioritization of the temporary permit issuance needing a quick turnaround. A temporary STR permit would undermine the intention of the waitlist and permit cap system as a temporary permit would skip the waitlist process and subsequently create longer waiting times due to the diversion of the newly freed STR-C permit to be put back into the system as a temporary permit. Unequal competition between owners and operators on the waitlist versus those ‘jumping the line’ through the temporary permit process. Bookings allowed to remain in place for a newly sold property would get a temporary permit, yet would deny that business to the next property on the waitlist. A temporary STR permit reduces predictability for applicants on the waitlist, creates more administrative workload for staff, and is a questionable customer service practice on the City’s behalf based on the newly adopted STR regulations. Due to these concerns and staff’s evaluation that need for a ‘run-out’ period is a relatively infrequent circumstance that could be avoided by the private parties involved, staff does not support a run-out period at this time. CONCLUSION AND NEXT STEPS: October 1, 2022 will be the date new STR owners and operators are allowed to apply for new permits. All ‘grandpersoned’ permits must renew their permit by December 31, 2022. Staff is dedicated to a smooth launch and requests that any code amendments desired by Council to respond to the ‘run-out’ concept also consider the time and resources required to create a new program. 41 STR ‘Run-out’ Period September 12, 2022 Page 5 of 5 FINANCIAL IMPACTS:The Finance team has confirmed a fourth permit within MUNIRevs would incur additional costs. There would need to be a new contract and a 10 to 12-week period to code the new permit into the system. Estimated costs are $3,000 for the first year to create the temporary permit, and $1,800 for annual fees thereafter. ENVIRONMENTAL IMPACTS:N/A. ALTERNATIVES: 1.Take no action and staff will continue to evaluate the topic as the program rolls out. 2.Direct staff to pursue a code amendment that creates a fourth, temporary permit type to accommodate the ‘run-out’ period. RECOMMENDATIONS: Staff recommends that Council does not pursue a ‘run-out’ period for STR permits upon the sale of a home. A ‘run-out’ period counters the intention of the non-transferabilty clause and waitlist and would create burden on both the administrative application of a temporary permit and the legal boundaries the City would be party to in administrating it upon the private sale of a home. Staff supports that an owner and buyer may be able to privately determine how to best accommodate future bookings in the case of a property sale. CITY MANAGER COMMENTS: EXHIBITS: Exhibit A – Summary of Responses Exhibit B – Ordinance #09, Series of 2022 42 1 Exhibit A Summary of Responses 9/12/22 On June 28, 2022, Council passed Ordinance #09, Series of 2022, creating the City’s first ever set of regulation on short-term regulations (STRs). This ordinance implemented a comprehensive set of policy related to the issuance of STR permits. During second reading on June 28th, Council directed staff to return to and research what a ‘run-out’ period on STR permits upon a sale of a home might mean for the City’s non-transferability policy in response to STR stakeholder public comment. Staff conducted research and reached out to third party renting services, neighboring mountain west communities, and the 12-person STR Technical Advisory Committee (TAC) to gain understanding of what the issue is, what other communities are doing to respond, and how the City may respond. The following is a summary of the questions asked and responses from Vrbo, seven neighboring mountain west communities, and two TAC members. Vrbo Response: Question: How do third party services conduct business upon a sale of a rental property that they list? Do you have a cancellation policy? What is the language you have that either supports or protects the owner/buyer or subsequently the renter? Response from Ashley Hodgini, Regional Government Affairs Manager with Expedia Group / Vrbo: To the best of my knowledge, Vrbo does not track this information, and all decisions on when/whether to list a home for short-term rent are left to the owner of the property. Sellers/buyers and real estate agents almost always do a thorough job of working through how to honor or cancel bookings on their own, and I’d say the vast majority of jurisdictions do not attempt to legislate this process. With regard to Vrbo, if an issue arises such as, for example, a previous owner did not take down their listing and the new owner doesn’t wish to rent, we simply deal with that on a case by case basis—it’s usually a straightforward process to remove the listing at the request of the property owner. In my experience, however, that is a rare circumstance, and I’ve personally never seen it where there are existing bookings that need to be handled. Hoping this information is helpful! 43 2 TAC Responses: Question 1: What is the issue you’re experiencing Response from TAC Member #1: We are renting units far into the future, sometimes as much as a year in advance. An owner’s circumstances can change during that time and they may list their unit for sale with existing rentals in place. If we are unable to relocate the rental to another unit, we are forced to honor the rental or just cancel it outright, leaving the guest with no alternative and potentially ruining their planned, booked, and paid for vacation. Response from TAC Member #2: How this comes into play is when an owner with a current STR has an executed rental agreement in place for the future. It could be in 30 days, or next winter. When they decide to sell the property, there is an executed rental agreement in place between the owner and the tenant. The executed rental should be allowed to “run – out”. Whatever that timeframe may be. Question 2: Who does the issue affect? Response from TAC Member #1: Frias Properties as the rental agent and the paying rental guest. Response from TAC Member #2: No Response Question 3: Specifically, how does the issue affect each of the parties mentioned above? Response from TAC Member #1: Frias Properties as the rental agent – If we have to cancel a booking solely because the license is no longer valid because the unit sells, it makes us look bad and will harm our reputation. This guest would likely never book through us again and could also share their negative experience with other potential clients. Paying rental guest – Potentially leaves the guest with no alternative and can ruin their planned, booked, and paid for vacation. Response from TAC Member #2: If the new owner isn’t allowed to acquire an STR permit in a capped area, they do have the responsibility to complete the executed rental. Without allowing a “run-out”, the new owner would end up in violation of the new ordinance, with no way to remedy. Question 4: How often do you experience this issue, i.e., in the last three years how many times have you had to navigate this issue on a property? 44 3 Response from TAC Member #1: So far, this has not been an issue because a new owner was always able to get a permit at any time. Over the last three years approximately 10 units have sold with rentals in place that we honored through a contract with the new owner. Response from TAC Member #2: I don’t know that we have any owners at the moment that are in this specific situation, but when it’s come up in the past year, there’s usually not more than 30-60 days notice. Question 5: What is the financial impact of this issue? Response from TAC Member #1: If we are forced to cancel a fully paid for booking, we will have to refund the entire amount back to the guest so we will no longer earn our commission on the rental. Response from TAC Member #2: No Response Question 6: What other impacts are associated with this issue? Response from TAC Member #1: The bigger hit to on our reputation as we rely on a lot of repeat business and if we are forced to cancel on a client, they likely will not use us again for their rentals. Response from TAC Member #2: No Response Question 7: Why should the City of Aspen consider a code amendment to address this issue? Response from TAC Member #1: Because at the end of the day, it is a really simple process and will allow all of the rental companies to avoid having to cancel on a guest. Response from TAC Member #2: We strongly recommend creating a situation that doesn’t put the new owner in violation and restriction of having an STR in the future via the standard application process. Question 8: What are your suggestions for solving this issue? Be specific. Response from TAC Member #1: If a unit sells with confirmed bookings in place, the City could issue a temporary permit for 90 days from the sale date to honor only existing bookings that are already in place. The new owner will obtain that temporary permit, we 45 4 will honor the bookings in place, pay the new owner the revenue, and at the end of the 90 days, the permit will no longer be valid and STRs will no longer be allowed in the unit. Response from TAC Member #2: No Response Community Responses: Question: Does your STR Policy include a ‘run-out’ period? Please describe any conversations you may have had with the public or your Council on this concept. Response: City of Salida We have a non transferability clause as well. Basically, once I get a confirmation that a property with a STR license is sold (I get a biweekly list of houses for sale/sold by our Utilities coordinator) then I follow up with the STR owner and let them know to pay out the final taxes and to cancel all future bookings. Most of the time, I hear the news directly from the STR owner since they don't want to have to keep paying the occupational lodging tax on the property they no longer own. From there, I double check that the property listing has been taken down. The 60-90 day grace period would be very challenging administratively. Who would pay the taxes on the future bookings? The new buyers who don't have a license yet or the old owners who no longer own the property? Very strange. Response: Town of Crested Butte Town of Crested Butte vacation rental licenses are non-transferable. A realtor had once suggested that Town offer a provisional license to new owners of previously licensed vacation rental properties that would allow the new owner to honor the existing bookings through the end of either the summer/fall tourist season or the winter/spring tourist season. The suggestion was that this license would have a fee and a set expiration date so vacationing guests would not be displaced due to the sale of the property. The realtor did not ever present a formal request to council to consider amending the licensing regulations to create a provisional license. The provisional license would not have been subject to the Town’s 30% cap limit on the number of licenses issued. It would instead be regulated by a date certain expiration. What I have seen occur over the last four years in the real estate market is the owner and buyer negotiate a later closing date that allows the remaining summer or winter bookings to take place. This approach of course depends upon the individual parties involved in 46 5 the real estate transaction. Conversely, I have seen properties stop taking bookings once they put the property on the market. It is the vacation rental business owner’s responsibility to manage the contract with their clients. If they continue to take bookings after their property is listed for sale they are taking the risk of having to cancel bookings when the property goes under contract. Hope this helps and thanks for the copy of the ordinance. I will forward it on to the planning team as we are just commencing the process to revise our existing regulations through a new ordinance. Response: City of Ouray Good question. That is definitely something the city of Ouray doesn't include in its STR regulations. However, we of course have encountered this situation many times and have handled it fairly consistently: - STR licenses are not transferable within the City of Ouray. - If a property is licensed and sells to a new owner who also wishes to continue operating a STR, they must apply for a new license, pass a building inspection, have all their state sales tax forms on file, etc. Since that often takes more than 1 day (and often takes months) any STR operations in the meantime would be essentially operating without a license. - If the STR was managed by a property management company who has other rentals in its pool, when we discuss this policy with them if the current/prospective owner is concerned about this rollover of bookings, they are often able to rebook those to a new property to avoid losing clients. - Long story short, it is often an inconvenience, but I care more about properties operating with a valid license and during that gray area between owners, that would be operating without a license, or illegally. I hope that helps! I will also mention the County of Ouray does give new property owners an option to transfer an existing STR license as part of the sale (I believe there's a 60- day window to do so) so the county might have some insights on how they've navigated this in the past. Response: County of Ouray (per City of Ouray’s suggestion) If an existing homeowner is selling their house and gives the date they plan to close – the new owner has 60 days to submit a new STR application - pay new fee; if they don’t then the existing permit will be reissued to a waitlist. 47 6 Response: Glenwood Springs In my experience I have not received any of those types of requests. In general, once the house sells and changes hands – the Short Term Rental Permit is null and void. If the previous owner had made reservations, any use of the home as a short term rental would not be legal, unless the new owner was able to secure a permit. Once the house is sold, permit is gone, and the house is just like any other home used for residential purposes. Response: City of Durango As for the question at hand regarding run-outs or grace periods, I can say that we in Durango have not historically allowed for any flexibility. Property owners should have a pretty good idea of when they intend to sell and could easily just choose to stop taking bookings beyond a certain date as they get close to listing the property. Presumably, they would also have some say in determining when the closing occurs. Frankly, minimal planning ahead on behalf of the property owner would make this a non-issue. Hope that helps! Feel free to give me a call if you need more info, I’d be happy to chat. Response: Breckenridge Here is how we defined taking care of existing reservations booked by the previous owner. Our ordinance contains this language: “If an accommodation unit license is lost because the licensee no longer holds legal title to the real property that is the subject of the license, the Finance Director shall, upon request of the subsequent owner of such real property, issue to such owner a temporary six-month accommodation unit licensee to allow such owner to honor, insofar as possible, reservations for the property that existed on the date that the previous owner’s accommodation unit license was lost due to the transfer of legal title to the real property that was the subject of the previous license.” The process works like that: The buyer has to apply for the license and pay any fees if applicable. We issue a license with an automatic expiration date 6 months from the date of deed transfer. The buyer cannot advertise or accept additional bookings. The license covers only reservations made by the previous owner. 48 Ordinance #09, Series of 2022 Short-term Rentals Page 1 of 14 ORDINANCE NO. 09 (Series of 2022) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE VACATION RENTAL REGULATIONS IN THE CITY OF ASPEN LAND USE CODE. WHEREAS, the City of Aspen (the “City”) is a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the home rule charter of the City (the “Charter”); and, WHEREAS, the City of Aspen currently regulates land uses within the City limits in accordance with Chapter 26.104 et seq. of the Aspen Municipal Code pursuant to its Home Rule Constitutional authority and the Local Government Land Use Control Enabling Act of 1974, as amended, §§29-20-101, et seq. C.R.S; and, WHEREAS, Aspen is a tourists destination, attracting tens of thousands of visitors a year in all seasons, visitors which require transient tourist accommodations and participate in and support Aspen’s tourist economy; and, WHEREAS, a variety of tourist accommodations at varied sizes, quality, and price points is essential to supporting the City’s tourist economy; and, WHEREAS, a tourist-based economy such as the City’s requires a sufficient number of employees to provide the services required to serve such an economy. Without adequate workforce housing, a tourist-based economy cannot thrive; and, WHEREAS, to allow for a sufficient number of employees to be hired to provide the services necessary to sustain a tourist-based economy there must be an adequate supply of workforce housing; and, WHEREAS, historically, the long-term rental of residential property, or at least the long-term rental of space within a residential property, has been an important means for providing workforce housing within the City; and, WHEREAS, in addition to the required workforce housing, it is also essential to the continued vitality of the City’s economy that adequate short-term housing be made available to the many tourists who visit the City each year; and, WHEREAS, short-term rentals are extremely valuable to the City’s economy and exist in various locations throughout the City; and, WHEREAS, the operation of a short-term rental in the City is the operation of a business; and, 49 Ordinance #09, Series of 2022 Short-term Rentals Page 2 of 14 WHEREAS, without regulations and limitations on their operation and extent, short- term rentals also have adverse impacts on the character of residential neighborhoods and the availability of long-term housing options; and, WHEREAS, tourists visitation, the operation of tourist accommodations, the goods and services demanded by tourists, and the transportation systems required to move tourist to and throughout the community have environmental impacts, measured as Greenhouse Gas Emissions; and, WHEREAS, in keeping with the goal of the City’s Comprehensive Plan to preserve small town character while maintaining livability, the City desires to minimize the negative impacts of short-term rentals on Aspen’s neighborhoods, housing supply, economy, and environment; and, WHEREAS, during the moratorium, adopted Ordinance No. 26, Series of 2021, City staff engaged in a robust public engagement process which included two online surveys regarding community perception of short-term rentals and feelings toward specific regulations; an open house at City Hall which included story boards and an opportunity for feedback; a public work session to discuss the online survey results and expand further into certain topic areas; and research into how other municipalities in Colorado regulate short-term rentals; and, WHEREAS, the Planning and Zoning Commission received and considered the information gathered through the public engagement process, as well as comments from the public, during a Meeting held on May 17th, 2022, and voted 4 to 0 to recommend approval of Ordinance #09, Series of 2022 to City Council; and, WHEREAS, on December 12, 2021, City Council adopted Ordinance No. 26, Series of 2021 enacting a temporary moratorium in the issuance of new short-term rental permits until September 30, 2022; and, WHEREAS, at a regular meeting on May 24, 2022, City Council by a 5 to 0 vote, approved Ordinance #09, Series of 2022, approving at First Reading a Code Amendment to Vacation Rental Regulations; and, WHEREAS, at a regular meeting and properly noticed public hearing on June 28th, City Council by a 5 to 0 vote, approved Ordinance #09, Series of 2022 on Second Reading; and, WHEREAS, the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety, and welfare; and, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1. Section 26.104.100 “Definitions shall” be amended as follows: 50 Ordinance #09, Series of 2022 Short-term Rentals Page 3 of 14 Condo-hotel. A condo-hotel is a lodging property which meets the definition of Lodge in 26.104.110, Use Categories and in which ownership of individual lodge units has been condominiumized in accordance with The Colorado Condominium Ownership Act, C.R.S. § 38-33- 101, et. seq. Hotel. See definition of Lodge, 26.104.110 Use Categories. Motel. See definition of Lodge, 26.104.110 Use Categories. Natural Person. A living, individual human being, as distinct from a “legal person” for the purpose of assigning certain legal rights. Owner Occupied. A residential property that serves as the primary residence of the title owner of the property. Owner Occupant. For the purposes of permitting specific types of short-term rentals, owner- occupant is a natural person whose principal residence is the City of Aspen residential property or unit for which a short-term rental permit is sought. Pillow. A unit of measure for assessing affordable housing generation and occupancy of lodge rooms/units per bedroom in a short-term rental. Each lodge and short-term rental unit shall be considered to have two pillows for each bedroom. For calculating occupancy in short-term rentals, sleeper sofas, murphy beds, and similar sleeping accommodations shall be considered as two pillows. Studio units shall be considered to have two pillows. Primary residence. The permanent residential address, as demonstrated by acceptable legal documentation described in this title, of an Owner- Occupied Short-term Rental Permit holder. Qualified Owner’s Representative. A natural person who is legally designated on the permit application by the permittee to apply for and maintain compliance with a City of Aspen Short-term Rental Permit. For each short-term rental property, there may be only one qualified owner’s representative. All qualified owner’s representatives must have a business license through the City of Aspen. Short-term Rental (STR). The use or occupancy of a residential property or dwelling unit, in whole or in part, by the general public for a fee, primarily for tourist accommodations, and for a period of less than 30 days. Timeshare, hotel, motel, and bed and breakfast uses are not short-term rental uses. Vacation Rental. See short-term rental. Section 2. Valid 2021-2022 Permits. 2021 Vacation Rental Permits (2021 VRP) issued pursuant to Section 26.575.020 “Vacation Rentals” on or prior to December 8th, 2021, shall be deemed to be valid 2022 STR Permits and shall be valid until December 31, 2022. Valid 2022 permits may be renewed annually thereafter, subject to the terms and conditions set forth in this chapter until they are abandoned or revoked in accordance with this chapter. Valid 2022 permits which are 51 Ordinance #09, Series of 2022 Short-term Rentals Page 4 of 14 renewed after December 31, 2022, may not be transferred to owners or properties other than that listed on the 2022 STR permit. Upon renewal, 2022 STR permits issued to a corporation, partnership, association, or company must update the permit application information to comply with the requirements of Chapter 26.530. The number of Short-term Rental-Classic (STR-C) permits as of January 1, 2023, may exceed the cap for zone districts, as defined in Chapter 26.530, until such time as they are revoked, abandoned, or otherwise eliminated. Owner- occupied Short-term Rental Permits and Lodging Exempt Short-term Rental Permits may be issued with the requirements of Chapter 26.530 beginning October 1, 2022. Section 3. Section 26.575.220 “Vacation Rentals” shall be deleted in its entirety. Section 4. Chapter 26.530 “Reserved” shall be deleted in its entirety and replaced with the following: Chapter 26.530 Short-term Rental Regulations Sec. 26.530.010 Purpose Sec. 26.530.020 Applicability Sec. 26.530.030 Permitting Requirements Sec. 26.530.040 Permitting Procedures and Standards Sec. 26.530.050 Occupancy and Operational Standards Sec. 26.530.060 Enforcement Sec. 26.530.070 Fees Sec. 26.530.080 Appeals 26.530.010 Purpose The purpose of this Chapter is to regulate short-term rentals (STRs) as a land use within the City of Aspen. STRs are an important component of the City’s lodging bed base, support a vibrant tourist economy, and provide real property owners with STR permits significant financial benefit. STRs influence property value and occupancy patterns of residential dwelling units. STRs influence neighborhood character by introducing commercial lodging uses in residential neighborhoods. STRs require services and infrastructure to operate. STRs further reduce the potential availability of long-term rental housing to support the local economy and community. STRs require regulation as a distinct land use to ensure the health, safety, peace, and welfare of the community through the application of zoning police powers. The following regulations support the operation of STRs balanced with community policies related to housing, development, growth management, and a sustainable economy as described in the Aspen Area Community Plan. 26.530.020 Applicability A. This chapter applies to all STRs in the City of Aspen. STRs are required to obtain a permit in accordance with their type and operation as defined in this section. STRs operating without a permit are subject to enforcement as defined in Section 26.530.060 Enforcement. 52 Ordinance #09, Series of 2022 Short-term Rentals Page 5 of 14 B. It shall be unlawful for any person, whether a principal or agent, clerk, or employee, either for him or herself, or for any other person for anybody, corporation or otherwise, to lease or operate an STR without first obtaining an STR permit in accordance with the provisions and procedures of this section. 26.530.030 Permitting Requirements A. Permits. Any property rented as an STR shall require a permit to operate. Permits shall be approved, approved with conditions, or denied by the Community Development Director based on the following criteria: 1) Permittee. Permits shall only be issued in the name of one natural person who has an ownership interest in the property for which the permit is issued (“Permittee”). 2) Permit Number. STR permits are issued a unique permit number. That permit number shall be clearly displayed in all advertising and listings of the STR, including but not limited to all digital and print advertising. The permit number must be listed in the STR, along with permittee and/or qualified owner’s representative and emergency contact information as part of the in-unit Community Messaging Program described in the STR Program Guidelines. 3) Permit Application Contents. The following information is required for STR permit applications: the owner(s) of the property, the name and contact information of the proposed permittee; if title to the subject property is held by a corporation, partnership, association, or company, the name and contact information of any officer, director or stockholder holding ten percent (10%) or more of the interests in the corporation, partnership, association, or company; the property address, Pitkin County parcel identification number; Pitkin County owner name; number of bedrooms and pillows in the unit in its largest configuration; size of heated area of the STR residence, and all previous notices of code violations or complaints filed against the property. 4) Licensing. STRs are required to maintain a City of Aspen Business License and are required to remit lodging and sales tax in accordance with Municipal Code regulations and Finance department policies. The STR Program Guidelines include details about licensing and tax compliance standards and procedures. 5) Non-Transferability. Commencing October 1, 2022, STR permits shall be granted only for the property for which it is issued and solely to the permittee to whom it is issued. The permit shall not be transferable to any other person, legal entity, or residential address. If the property is owned by a partnership, corporation, association or company, a transfer shall be deemed to occur if the permittee transfers his or her interest in the property to a third-party individual or entity or if more than ten percent (10%) of the partnership, corporation, association, or company is transferred to a third-party individual or entity, even if the permittee retains an ownership interest in the property. Upon such transfer of ownership, the permit shall be deemed terminated and revoked and the new 53 Ordinance #09, Series of 2022 Short-term Rentals Page 6 of 14 owner of the property shall be required to apply for a new STR permit if it wishes to continue the use of the property as a vacation rental. The STR permit shall include a non- transferability clause and notice that the permit shall be deemed terminated and revoked automatically upon the sale or change of ownership of the property for which a permit has been issued, as described herein. B. Permit Types. STRs shall be eligible for one of three permit types: Short-term Rental Classic, Owner-Occupied Short-term Rental, or Lodging Exempt Short-term Rental. The ability to obtain an STR permit is conditioned upon the permittees consent of the eligibility, requirements, and standards for each permit type as follows: 1) Short-term Rental Classic (STR-C) – this permit is issued only to residential units located in eligible zones and the approved use of which is not a Lodge use. (Condo-hotel properties must apply for a Lodging-Exempt STR permit.) a. STR-C permits shall be renewed annually and are assessed an annual permit fee in accordance with Section 26.530.070 Fees. b. STR-C permits are subject to the life-safety standards and the operational standards described in this chapter and the STR Program Guidelines. c. There is no annual limit on the number of nights an STR-C permittee may operate the STR unit. Bedrooms, lock-offs, or portions of the residential unit, in addition to the whole residential unit, may be rented. Occupancy for the unit is limited by the standards described in Section 26.530.050. 2) Owner-occupied Short-term Rental (STR-OO) – this permit is issued only to owner- occupied residential units, where the property is the primary residence of the permittee. Part 700 of this Title describes the zone districts where STRs are a permitted use. a. STR-OO rental permits shall be renewed annually and are assessed an annual permit fee in accordance with Section 26.530.070 Fees. b. STR-OO are subject to the life-safety standards for STRs described in this chapter and the Program Guidelines, and who must have two (2) of the following valid documents indicating that the STR is the applicant’s primary residence: i. valid Colorado driver’s license; ii. valid motor vehicle registration; iii. voter registration; iv. Federal or state tax return; or, v. other legal documentation deemed sufficient by the Community Development Director which is pertinent toward establishing principal residence. 3) Lodging Exempt Short-term Rental (STR-LE) – Lodges and condo-hotels which meet the definition of Lodge are eligible for STR-LE permits. a. For eligible properties, only one permit is required for all units under management. b. In addition to the limitations of the definition of Lodge and/or Condo- hotel, Lodging Exempt eligible properties must offer STR units under a 54 Ordinance #09, Series of 2022 Short-term Rentals Page 7 of 14 unified brand and marketing model where individual ownership of units is secondary to the central brand of the property. c. Lodging Exempt permittees must submit an affidavit attesting to their eligibility. d. STR-LE permits must be renewed annually and are assessed an annual permit fee in accordance with Section 26.530.070 Fees. To ensure ongoing eligibility for the STR-LE permit, permittees are subject to the Lodging Occupancy Auditing regulations in Section 26.575.210. C. Zoning Limitations. STR-C permits are limited by number in residential zone districts. Refer to Part 700 of this title for permitted uses by zone to assess where STR-Cs are permitted. In zones where STR is not a permitted use, it is a prohibited use. 1) STR-C permits are limited by number in specific zone districts as follows: a. RR: 2 permits; b. R-3: 1 permit; c. R-6: 81 permits; d. R-15: 47 permits; e. R-15A: 8 permits; f. R-15B: 12 permits; g. R-30: 1 permit; h. R/MF: 190 permits; i. R/MFA: 12 permits; j. AH: 9 permits; k. MU: 39 permits; l. NC: 1 permit; m. SCI: 2 permits; n. SKI: 2 permits. 2) There is no limit to the number of STR-C permits in the following zone districts: Commercial (C-1), Commercial Core (CC), Lodge (L), Commercial Lodge (CL), Lodge Overlay (LP), Lodge Preservation Overlay (LO). 3) STR-OO are not limited by number in any allowable zone district. Refer to Part 700 of this title for zone districts where STR is a permitted use. 4) STR-LE are not limited by number in any allowable zone district. Refer to Part 700 of this title for zone districts where STR is a permitted or prohibited use. 26.530.040 Permit Procedures and Standards. Prior to the issuance of an STR permit, the permit application will be reviewed for compliance with the following standards. A. Zoning Compliance. All STR permits must comply with zoning regulations for the zone district in which they are located. STR permit applications shall include the Parcel Identification Number and residential 55 Ordinance #09, Series of 2022 Short-term Rentals Page 8 of 14 address including unit number for the property to ensure compliance with underlying zoning. Zone district STR regulations, including permitted uses and cap limitations, may change over time per City Council action. Possession of an STR permit does not supersede compliance with zone district STR regulations. B. Life-safety Compliance and Inspection. 1) Required Noticing. All new STR applicants shall comply with neighborhood noticing requirements per Section 26.304.060.E.3.b-c, Manner of Notice. 2) Inspections. By signing and submitting an STR permit application, and subsequently being granted a permit, the owner(s) of the property shall consent to inspections of the property by City of Aspen personnel and their agents for the purpose of determining compliance with City Codes, Regulations and Laws. No inspection will be made without first giving the permittee and, if applicable, the qualified owner’s representative, 48 hours’ notice of the inspection. 3) Life-Safety. STRs are required to comply with all applicable life-safety standards in Municipal Code Title 8 and the STR Program Guidelines, as amended from time to time. Life-safety standards including: fire suppression, occupancy limitations, mechanical codes, emergency contacts and procedures, and inspections. C. Qualified Owner’s Representative. Permittees who cannot meet requirement for regulatory compliance, in-person service, emergency response and other regulations in this title may designate a qualified owner’s representative. A qualified owner’s representative shall be a natural person residing in the Roaring Fork River Drainage area situated in Eagle, Pitkin, Garfield or Gunnison Counties, or within the Colorado River Drainage area from and including the unincorporated No Name area to and including Rifle. The qualified owner’s representative is designated by the permittee who is the property owner as the point of contact for the permitted STR. For permittees that designate a qualified owner’s representative, the qualified owner’s representative shall be responsible for responding to tenant and City inquiries, complaints, enforcement actions, and other on-site needs. 1) If a qualified owner’s representative is designated for an STR, the qualified owner’s representative must have a City of Aspen business license. The qualified owner’s representative shall be listed on the STR permit for the property including the qualified owner’s representative’s name, entity or company name, telephone number, email address, and physical address. 2) STR permittees who designate a qualified owner’s representative are liable for compliance with applicable Land Use Code and Municipal Code regulations. The qualified owner’s representative is not legally liable for violations of this section or compliance with applicable Municipal Code regulations but is responsible for notifying the permittee when a violation has occurred. 3) The name, address, and telephone number(s) of the qualified owner’s representative, as shown on the STR permit, shall be made available to the Community Development 56 Ordinance #09, Series of 2022 Short-term Rentals Page 9 of 14 Department, the Aspen Police Department, and the Aspen Fire Protection District. Any change to the qualified owner’s representative or permittees’ contact information shall be promptly furnished to the City of Aspen via a revised STR permit application within ten (10) days. Failure of the permittee to provide or update the qualified owner’s representative contact information to the City shall constitute an enforcement violation subject to actions and penalties as described in Section 26.530.070 Enforcement. 4) The permittee, or if designated, the qualified owner’s representative, shall be available 24 hours a day, year-round to ensure that the property is maintained and operated as required by Land Use Code standards and the STR Program Guidelines. The permittee, or if designated, the qualified owner’s representative, shall respond to service or compliance inquiries from occupants and City officials, and shall be available to be at the property within two (2) hours in an emergency. Failure of the permittee, or if designated, the qualified owner’s representative, to respond to a call from a tenant or the Community Development Director within 24 hours shall result in an enforcement violation subject to actions and penalties as described in Section 26.530.070 Enforcement against the permittee. D. Permit Application, Fees, Issuance, Renewal, Revocation, and Abandonment. 1) Application. Permit applications shall be received and processed on a first come, first served basis. The Community Development Director shall deem applications complete based on the requirements of this Chapter and the standards in the STR Program Guidelines. Only complete STR permit applications shall be accepted and reviewed. 2) Fee Payment. Permit fees shall be remitted at the time of permit application and cover the cost of processing the application. Application fees are nonrefundable. 3) Neighborhood Noticing. Upon application for a new STR-C or STR-OO permit, the applicant shall provide neighborhood noticing in accordance with Section 26.304.060.E.3.b- c. Manner of Notice. Permit renewals do not require neighborhood noticing. Permits shall be approved, approved with conditions, or denied following the notice period. STR-LE are exempt from this provision. 4) HOA Compliance. Permit applications for residential properties which are in a Homeowners Association (HOA) must include HOA approval for the applicant to operate an STR in the form of a signed letter, including telephone and email contact information for the HOA, with the permit application. 5) Issuance. Permits shall be approved, approved with conditions, or denied within 21 working days of the closure of the notice period described above. The Community Development Director may issue permits with conditions based on review of the permit application and public comment. The review and issuance period for individual permit applications may be extended at the direction of the Community Development Director. 6) Waitlist. Once the permit limit is reached for each zone district, applicants will be placed on a waitlist for the next available permit in the order in which the application was received. 57 Ordinance #09, Series of 2022 Short-term Rentals Page 10 of 14 A waitlist applicant shall be a natural person. The residential address included in the waitlist application must match the residential address for which the subsequent permit is issued. Applicants who sell the property for which the permit is sought shall be removed from the waitlist. As permits become available, waitlist applications shall be reviewed and approved, approved with conditions, or denied. If the property has been found in violation of this Chapter during the waitlist period, the application shall be denied. 7) Renewal. STR permits shall be renewed annually in accordance with the procedures in the STR Program Guidelines. Failure to renew a permit within fourteen days (14) of the permit expiration date shall result in the abandonment of the permit. 8) Tax Filing. STRs must be occupied by a short-term renter a minimum of once per year, as shown in tax filings to be eligible for renewal. Permits with one year of zero tax filings from the date of permit issuance or renewal will be considered abandoned and be processed in accordance with the standards in this chapter. 9) Abandonment. STR-C and STR-OO permits shall be valid for one year from the date of issuance and shall be renewed annually. Failure to renew a permit in accordance with the STR Program Guidelines will result in the abandonment of the permit. STR permits may be abandoned by permittees at any time by notifying the Community Development Director of the intent to abandon the permit. Abandoned permits will be made available to the next applicant on a first-come, first-served basis or the next applicant on the waitlist for that zone district in accordance with the STR Program Guidelines. STR-LE are exempt from this provision. 10) Revocation. STR permits may be revoked by the Community Development Director for any of the following reasons: three violations of the requirements of this chapter and applicable Municipal Code standards as described in the STR Program Guidelines, failure to rent the property during the term of the permit, failure to pay STR taxes and fees, or violations of the requirements of this section. 26.530.050 Occupancy and Operational Standards. Prior to the issuance of an STR permit, the permit application will be reviewed for compliance with the following standards. A. Occupancy Limits and Unit Size. STRs are limited to a total occupancy of two occupants per bedroom plus two additional occupants, studios are limited to a total occupancy of two occupants plus one additional occupant. Permit applications are required to list the number of bedrooms in the unit at its largest configuration. STRs may be inspected for accuracy of bedroom count on the permit application and for compliance with these occupancy requirements. For the purpose of establishing unit occupancy, a studio shall have an occupancy of two occupants plus one additional occupant. Occupancy for each STR shall be included in all STR advertising, the in- unit messaging, and permit on display in each permitted STR. Bedrooms, lock-offs, or portions of the residential unit, in addition to the whole residential unit, may be rented. 58 Ordinance #09, Series of 2022 Short-term Rentals Page 11 of 14 B. Annual Rental Night Limits. STR-OO are limited to 120 short-term rental nights per year from the date of permit issuance. There is no annual limit on the number of nights per year an STR-C can be rented. There is no annual limit on the number of nights per year an STR-LE can be rented. C. Good Neighbor Guide. STRs are required to operate in accordance with all applicable Municipal Code regulations protecting the health, safety, and peace of the community and supporting the maintenance of community character and values. STR owners and permittees are required to assist STR occupants in being ‘good neighbors’ by recognizing their obligation to following the rules and customs of the community. To support these community goals, the Community Development Department maintains the Short-term Rental Program Guidelines, Good Neighbor Guide, and collaborates with non-governmental organizations to promote good neighbor behavior by visitors. 1) STR-C and STR-OO permittees, and if designated, their qualified owner’s representatives must comply with the policies described in the City of Aspen Good Neighbor Guide and provide that information at all times to occupants of the unit. 2) In-unit messaging is essential to assisting STR occupants in supporting the City’s good neighbor policies, ensuring STRs in neighborhoods support community character, and assisting in the promotion of Aspen’s community character. The following notices shall be posted in a conspicuous location inside the rental unit: i. A copy of the STR-C or STR-OO permit, ii. STR license and business number, iii. The name, address, and telephone number(s) of the permittee or qualified owner’s representative, iv. A statement which reads: Occupants shall comply with the City’s Noise Ordinance, v. The location of the required parking spaces, vi. Wildlife protection policy, vii. The location of the fire extinguisher, viii. Information on the trash, recycling, and composting programs including: a. Solid waste pickup schedules; b. Guidelines on living with wildlife and instructions for operating wildlife containers; and c. A notice that trash and recycling containers must be stored indoors except between 6:00 AM and 6:00 PM on the day of scheduled trash or recycling pickup, where they may be placed at the curbside or in alleys. ix. City of Aspen emergency services information and contact information, x. The City of Aspen’s Good Neighbor Guide D. Adoption of and Compliance with STR Program Guidelines. The City Council hereby adopts the Short-term Rental Program Guidelines. The Community Development Department shall keep on file and make available to STR permittees, and if applicable, qualified owner’s representatives. These guidelines set forth the standards, procedures, and supplemental information necessary for the operation of an STR within the City of Aspen. The 59 Ordinance #09, Series of 2022 Short-term Rentals Page 12 of 14 Community Development Director may use the guidelines as a basis for enforcement actions in accordance with the requirements of this Chapter. The Guidelines may be updated, amended, and expanded from time to time by City Council Resolution. 26.530.060 Enforcement. The City of Aspen actively enforces its STR regulations through inspections, citizen complaints, audits, and permitting. These measures ensure that STRs reinforce, not undermine, community policies and character. Active enforcement ensures that visitors who choose to stay in STRs are informed of the unique qualities of mountain living and enhance our community culture by being good visitors and acting as neighbors and community members during their stay. STR permittee, and if applicable, qualified owner’s representative, play an essential role in supporting and advancing these policies and supporting the City’s enforcement activities. A. Complaints. Any valid complaint received regarding the STR property will first be referred to the permittee, and if applicable, qualified owner’s representative for response and correction. The Community Development Director will follow up with any complaining party, the permittee, and if applicable, qualified owner’s representative, for compliance or resolution. The permittee or qualified owner’s representative must respond to all complaints or inquiries from City officials within 24 hours and occupant complaints within two (2) hours. The City of Aspen is not responsible for complaints against a HOA, hotel, or condo-hotel’s own guidelines outside of the City’s code, rules and regulations. Failure to respond within 24 hours shall result in a notice of violation and demand to cure. All valid complaints will be recorded and kept on-file including the address, permittee, permit number, business license number associated with the complaint, and the complainer’s name and contact information. B. Enforcement and Penalties. Upon receipt of a compliant, the Community Development Department shall investigate and if it is determined there are grounds to believe a violation of this Chapter or any STR rules and regulations may have occurred, the Community Development Director may issue an Administrative Notice of Violation to the permittee. The Director shall revoke the STR permit of any permittee who receives three (3) Administrative Notices of Violation within the one (1) year permit cycle, effective upon mailing notice to the permittee’s address on file. The permittee may appeal the decision to revoke the STR permit by providing notice of appeal to the Community Development Director within fourteen (14) days of the date of the decision to revoke the permit. The Administrative Hearing Officer shall hear appeals brought pursuant to this section (B). Appeals shall be governed by the procedures set forth in Section 26.316.030. 1) Penalty. Any permittee that violates or allows another to violate any section of this Title shall be subject to prosecution in Municipal Court and upon conviction subject to the fines and penalties set forth in Section 1.04.080. A first offense shall be punishable by a fine of no less than five-hundred dollars ($500). Each day of any violation of this section shall constitute a separate offense. 2) Civil Remedies. 60 Ordinance #09, Series of 2022 Short-term Rentals Page 13 of 14 a. The City Attorney may institute injunctive, abatement, or other appropriate action to prevent, enjoin, abate or remove a violation of this Title when it occurs. The same right of action shall accrue to any property owner who may be especially damaged by violation of this Title. b. In addition to the penalties and remedies set forth herein, an STR permit shall be automatically revoked by the Community Development Director upon the third conviction of a violation of this Title by the permittee of the property subject to the permit within the one (1) year. c. Until paid, any delinquent charges, assessments, or taxes made or levied by the City pursuant to this Title shall, as of recording, be a lien against the property on which the violation has been found to exist. If not paid within thirty (30) days from the date of assessment, the City Clerk may certify any unpaid charges, assessments, or taxes to the Pitkin County Treasurer to be collected and paid over by the Pitkin County Treasurer in the same manner as taxes are authorized to be by statute together with a ten percent penalty for costs of collection. Any lien placed against the property pursuant to this Chapter shall be recorded with the Pitkin County clerk and recorder. 26.530.070 Fees. STR permits are assessed an annual fee per unit, remitted at the time of permit application, in accordance with the following table. Annual Administrative Fee STR-Classic: $394 STR-Owner-occupied: $394 STR-Lodging Exempt: $148/unit Table 1: Fee Schedule 26.530.080 Appeals. Permittees may appeal decisions made by the Community Development Director in the enforcement of this chapter. Appeals will be heard by the Administrative Hearing Officer in accordance with Section 26.316.020.D. Appeals shall be processed in accordance with Section 26.316.030. INTRODUCED AND READ, as provided by law, by the City Council of the City of Aspen on the 24th day of May 2022. ATTEST: _____________________________ ____________________________ Nicole Henning, City Clerk Torre, Mayor 61 Ordinance #09, Series of 2022 Short-term Rentals Page 14 of 14 FINALLY, adopted, passed and approved this 28th day of June 2022. ATTEST: _____________________________ ____________________________ Nicole Henning, City Clerk Torre, Mayor APPROVED AS TO FORM: _____________________________ James R. True, City Attorney 62