HomeMy WebLinkAboutagenda.council.worksession.20230327AGENDA
CITY COUNCIL WORK SESSION
March 27, 2023
4:00 PM, City Council Chambers
427 Rio Grande Place, Aspen
I.Work Session
I.A Elected Officials Transportation Committee (EOTC) Meeting Preparation
I.B Burlingame Ranch Phase 3 Update, Sales/Lotteries, Right-Sizing Proposal
I.C Burlingame Ranch Phase 3 - Affordable Housing Options for City of Aspen's
Emergency/Public Service Workforce
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EOTC Meeting Prep Packet.pdf
FInal Council WS Memo 27MAR2023.pdf
Exhibit A - Presentation Slides.pdf
City Internal Housing Memo 2023.docx
City_Employer_Housing_Memo_ATTACHMENT A.pdf
City_of_Aspen_Total_Compensation_Philosophy_Document-Attachment_B.pdf
COA_Housing_Survey_Summary_ATTACHMENT_C.pdf
Housing_Guidelines_ATTACHMENT_D.pdf
Emp. Sponsored Hsg. PP.pptx
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Page 1 of 5
MEMORANDUM
TO: Mayor and City Council
FROM: Chris Everson, Affordable Housing Development Project Manager,
and Perry Kleepsies, Senior Project Manager
THROUGH: Rob Schober, Capital Asset Director
MEMO DATE: March 20, 2023
MEETING DATE: March 27, 2023
RE: Burlingame Ranch Ph 3 Affordable Housing Development Update
REQUEST OF COUNCIL: Staff welcomes Council comments about this update on the
Burlingame Ranch Phase 3 affordable housing construction progress, unit sales process, and
right-sizing pilot program proposal.
BACKGROUND:
Construction Progress Background:
Burlingame Ranch Phase 3 is the final multifamily phase of Burlingame Ranch and consists of 79
for-sale affordable housing condominium units in thirteen buildings. Under the development
ordinance for Burlingame Ranch, two affordable single-family homes remain to be developed after
these 79 affordable condominiums are sold to buyers qualified under the APCHA program.
Building permit applications were processed in late 2020, and Phase 3 construction began in early
2021, with an initial budget of $50 million. The original plan was scheduled for thirteen buildings,
constructed in a modular factory, to be delivered to the project site and set in place by December
2021, with site work and landscape completion to follow in 2022. Unit sales were originally
scheduled for September 2022.
In an information-only memo to Council dated December 13, 2021, staff indicated that the project
schedule had slipped by 4 weeks from the original plan, due to modular fabrication and delivery
delays. Staff also indicated that 2021-2022 winter conditions would play a role in whether that
time could be made up and whether the September 2022 schedule for 79-unit sales could be
maintained.
In a memo to Council for a work session on April 11, 2022, staff indicated that the project had
incurred additional delays due to Covid-related labor impacts at the modular factory and supply
chain delays related to delivery of construction materials to the project site. Staff updated the
schedule to indicate that only half of the units could be sold in 2022 and the balance of the units
would be delayed until 2023.
Later, in a July 2022 public announcement, the City of Aspen stated that all Burlingame Ranch
Phase 3 unit sales were delayed until 2023. In this case, the City pointed not only to labor and
supply chain issues, but also to construction quality issues. Remediation of the quality issues
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identified would necessitate the project team working in partnership with the City’s suppliers to
focus efforts on ensuring high-quality construction while minimizing delays to the extent possible.
Unit Sales Process Background:
As noted above, unit sales were originally scheduled for September 2022 then later delayed to
2023. In a memo to Council for a work session on April 11, 2022, City housing development staff
together with APCHA staff recommended that the APCHA lottery process be utilized for the sale
of the units at Burlingame Ranch Phase 3. Staff also presented the proposed unit income
distribution for the sales process.
It was noted that buyer qualifications and lottery procedures would be based on the APCHA
Regulations and that unit sales prices would be based on maximum unit sales prices in the
APCHA Regulations. It was also noted that the APCHA Regulations state that in-complex bidding
is not allowed in phased projects.
Staff was directed to further develop the lottery process and to redistribute a few more units to
the Category 2 income level, which was recommended at the time to be 20%.
Right-Sizing Pilot Program Background
At the April 11, 2022 City Council work session, staff was directed to work with APCHA to develop
a right-sizing pilot program where a “handful” of units would be potentially set aside and offered
in a way which will incentivize households with any unoccupied bedrooms to sell their current,
larger unit and purchase a new, smaller unit at Burlingame 3.
The unit which those households move out of will then be re-sold, consistent with the APCHA
Regulations, to a household that will utilize all of the bedrooms. The intent of the pilot would be to
learn what incentives might be effective as a means toward better bedroom utilization in the
overall affordable housing inventory.
DISCUSSION:
Construction Progress:
In March and April of 2022, the project team began noticing moisture around some windows at
the project. The cause, as is often the case, was not immediately apparent and required
inspections by the project team. The City’s representatives met on site in late April 2022 with
pertinent suppliers to review performance concerns related to the windows. Inspections by the
City’s project team determined that the windows did not meet project standards, and the City
transmitted notice of such to pertinent suppliers May 10, 2022.
As sometimes occurs on construction projects, particularly where overlapping responsibility is
perceived, none of the suppliers immediately took action to remediate. As would be a typical
Owner’s remedy in such a situation, the City hired a forensic engineering specialist to evaluate
the conditions and produce a report on the matter. The City additionally hired a window testing
specialist to perform water pressure testing of windows per ASTM standards and to create a
report of the results.
The forensic engineering report and the on-site water testing took some time to organize. By
September 2022, the City had notified suppliers of their responsibility to address the problem. It
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was initially determined that 70 windows needed to be replaced, but due to the complexity of the
issues which had been discovered, more on-site window testing was deemed prudent to better
determine the full scope of remediation which would be needed. Upon completion and reporting
for a second round of window testing, further remediation was deemed necessary.
The current remediation plan has been arrived at through extensive effort on the part of
the City’s project team and its suppliers. More than 280 windows on the project are now
being replaced by the City’s suppliers, and the windows which are not being replaced are
being re-sealed so that the installation of all windows on the project will address industry
best practices and perform as expected.
Replacement of windows is recently underway and requires removal of siding on the exterior and
removal of drywall on the interior in the area of each affected window. This is planned to occur in
all buildings on the project. Impacts to the interior of the units is significant and requires
subsequent repair and cleaning throughout each unit affected. Unit repairs and cleaning are
planned to occur as the remediation work moves forward. Due to labor constraints, the project
team is still working out labor resources and exact time frame for the window replacement and
subsequent repairs and cleaning of affected units.
Staff has requested an additional $3 million in budget authority as part of the 2023 spring
supplemental budget process to ensure that funds will be available to complete the necessary
repairs and for the insurance and general conditions related to the schedule extension. Below is
a simplified description of possibilities moving forward:
Green: In the event that labor resources can be worked out soon and suppliers perform
as planned, staff expects unit sales could occur late summer 2023 and about one third of
the additional budgeted funds may be expended.
Yellow: If labor resources require further augmentation and/or supplier efforts suffer some
setbacks, unit sales may need to wait until fall 2023 and up to approximately two-thirds of
the requested funds may be expended.
Red: If labor resource issues are persistent and supplier efforts fall significantly short of
their negotiated remediation actions, units may be further delayed to 2024 and 100% of
the supplemental funds could be expended.
In all cases, staff plans to only expend funds where absolutely necessary to facilitate the
remediation work occurring as efficiently as possible in terms of both dollars and time spent. Staff
plans to seek reimbursement from applicable suppliers for funds which the City ultimately
may determine to be the responsibility of other parties based on the City’s contracts.
Further updates will be provided when available.
Unit Sales Process:
City and APCHA staff have cooperated to design a lottery process which would best balance
timing with the volume of lotteries and sales contracts. While some of the options considered
required fewer lotteries, they did not balance the effort needed to facilitate too many sales
contracts in a short period of time. Staff determined that the lottery structure shown below will
best balance timing with volume of lotteries and sales contracts:
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Buildings Addresses Units Number of Lotteries
Buildings 8 & 9 223-225 & 173-175 Paepcke Drive 24 10
Buildings 10 & 11 155 Paepcke & 45 Mining Stock Pkwy 12 6
Buildings 12 & 13 113-115 & 63-65 Paepcke Drive 27 12
Buildings 14 & 15 40-50 & Paepcke & 33 Mining Stock Pkwy 16 7
Total 79 35
The number of lotteries is necessitated due to the number of 1-, 2-, and 3-bedroom units in each
group of buildings times the number of applicable income categories. Many of the lotteries can
occur simultaneously, and the lottery and sales process may take three to five months. Minor
changes could occur, and full detail about each unit will be available at the time of lottery. For
reference, the project address plan is available here.
At the Council work session on April 11, 2022, staff was asked to redistribute a few units to the
Category 2 income level, which was shown at the time to be 20%. A table which includes the
requested redistribution is shown below:
Right-Sizing:
At the April 11, 2022 City Council work session, staff was directed to work with APCHA to develop
a pilot program to incentivize a few units for “right-sizing”. City and APCHA staff have cooperated
to design a “right-sizing” pilot program which would leverage priority in the lottery process as an
incentive for up to five households to downsize to a unit for which they meet occupancy
requirements under the APCHA Regulations.
Households with an existing unit where they are not occupying all bedrooms would be allowed
the opportunity to submit a prioritized bid for a new unit in which they meet occupancy
requirements under the APCHA Regulations. This “downsizing household” would be required to
submit a full qualification packet for the purchase of a new unit. If all qualifications are met, the
downsizing household would essentially go to the front of the line in the lottery to purchase a new
unit in which they meet occupancy requirements under the APCHA Regulations.
The sale of the unit owned by the downsizing household would follow a typical APCHA re-sales
process where all APCHA regulations would apply to the re-sale, including:
• Purchasing household size to meet occupancy requirement per APCHA Regulations
• Inspection requirement per APCHA Regulations
• Condition of units for re-sales per APCHA Regulations
• Replacement of deed restriction with most up to date APCHA deed restriction
• All other applicable terms of resale per APCHA regulations would apply
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Additional incentives could be added and include:
• Potential to allow downsizing households to waive retirement savings against asset cap
• Potential to allow downsizing households to move one category lower
• Potential to waive 2% APCHA sales fee for downsizing households
Up to five unit sales under this pilot program would be allowed. There would be up to five lotteries
where other bidders could be upset that they were bumped out of a lottery by one of these
prioritized bids. The community benifit of the pilot program is that up to five otherwise unoccupied
bedrooms in the inventory would become occupied through the re-sale process.
RECOMMENDATION: Staff welcomes Council comments about the construction progress, unit
sales process, and right-sizing pilot program proposal.
BUDGET IMPLICATIONS: Staff has requested +$3 million in supplemental budget authority. This
level of fund balance is available in the City of Aspen 150 Housing Development Fund.
CITY MANAGER COMMENTS:
ATTACHMENTS: Exhibit A – Presentation slides
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Burlingame Ranch Phase 3
Affordable Housing Development
Project Update March 27, 202372
Construction Progress Update
2 of 5
❖July 2022 announcement, unit sales
delayed until 2023
❖Window performance issues
necessitated due diligence
❖Replacement of 281 windows recently
began
❖Backer rod and sealant re-applied to
balance of windows
❖Additional budget only to be expended
incrementally, as needed for completion
Rendering -Burlingame Ranch Phase 3
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3 of 5
Staggered lottery process balances schedule with volume of
lotteries and sales contracts
Lottery Sales Process
❖Unit details available at the time of lottery
❖Qualifications per APCHA Regulations
❖Some lotteries can occur simultaneously
❖Process will take 3+months
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Income Category Distribution
Burlingame Ranch Phase 2
❖Council directed staff to redistribute
more units to the Category 2
❖Resulting income distribution,
Category 2 went from 20% to 23%
❖Consistent with 2022 Market Study
4 of 5
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Incentive for households with an unoccupied bedroom to downsize
•Lottery bid would be given priority
•Meet occupancy requirements and other APCHA Regulations
•Up to five unit sales allowed under this pilot
Resale of unit owned by the downsizing household
Right-Sizing Pilot
5 of 5
•Typical APCHA re-sales process
•Buyer to meet occupancy standards and other
APCHA Regulations
Community benefit:
•Up to five otherwise unoccupied
bedrooms in the inventory become
occupied via this pilot program
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MEMORANDUM
TO:Mayor and City Council
FROM:Alissa Farrell, Administrative Services Director
THROUGH:Sara Ott, City Manager
MEMO DATE:March 21, 2023
MEETING DATE:March 27, 2023
RE:Burlingame Ranch Ph III - Affordable Housing Options for the City
of Aspen’s Emergency and Essential Workforce
REQUEST OF COUNCIL:Council comments and feedback are requested regarding
Burlingame Ranch Phase III affordable housing options for the City of Aspen’s emergency
and essential workforce.
BACKGROUND: The City of Aspen maintains an internal, employee housing program
for essential and emergency (public safety) staff that is separate from the Aspen Pitkin
County Housing Authority (APCHA) with a current inventory of sixty-seven units. The
city’s existing housing inventory also includes three Burlingame Ph II units. The goal of
the city’s internal housing program is to prioritize essential and emergency public services
through city positions, which allows for a sustained focus on preserving community
priorities and providing timely emergency services.
On December 12, 2022, staff provided Council an overview of the city’s current employer
housing program to include the development of a multi-year, strategic plan by staff in the
first quarter of 2023. (Attachment A) Two workshops with internal stakeholders have been
completed and an internal housing strategic plan has been drafted. A priority of the
internal housing strategic plan is the purchase of additional units such as the units at
Burlingame Ranch Ph III for the city’s emergency and essential workforce based on cost
effectiveness and to meet community safety needs.
In 2022, City Council through Resolution #83 and #84 approved the purchase of two units,
one unit in Snowmass Village and another by the Aspen Airport Business Center (AABC).
The Snowmass unit is 1,215 sq. feet with 2 bedrooms, and a loft and was purchased by
the city for $1,025,000. The 686 sq. ft unit by the AABC is a 2-bedroom one bathroom
purchased by the city for $1,095,000. Furthermore, according to Realtor.com, the median
listing home price in Aspen, CO was $1.7M in February 2023, trending up 28.7% year-
over-year. The median listing home price per square foot was $1.9K. In order to have
essential and emergency city workers provide timely public service by living in close
proximity to Aspen, Burlingame is a cost-effective option to explore.
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DISCUSSION: Based on the 2022 city employee housing survey results, staff are
recommending the purchase of five Burlingame Ph III units comprised on two, one-
bedroom units and three, two-bedroom units for city emergency and essential workers.
The City Employee Housing Fund (Fund 505) could reimburse units purchased from the
Housing Development Fund (Fund 150). The current costs and purchase options for
Burlingame Ph III are as follows:
OPTION A: Development
costs without land and
infrastructure costs:
Size of Unit:Number of
Units:
Total Costs:
$472,154 One-bedroom Two $944,308
$684,956 Two-bedroom Three $2,054,868
=$2,999,176
OPTION B: Development
costs, including land and
infrastructure costs:
$563,327 One-bedroom Two $1,126,654
$817,221 Two-bedroom Three $2,451,663
=$3,578,317
FINANCIAL IMPACTS:
The city’s employee housing fund (Fund 505) is an internal service fund which supports
both existing and new units developed or acquired by the city. Revenues associated with
this fund are generated by collecting rent from employees in current units and collecting
sales from the purchase of a unit sold to an employee, and an internal per full time
equivalent/employee (FTE) charges assessed annually. For 2023, the per FTE charge is
up to $10,000 annually.
Presently, the annual revenues for 2023 equate to $3,844,200 and the operating, down
payment assistance, and capital expenditures total $1,255,630. With a targeted ending
fund balance of $7,185,354 for 2023.
Through Option A, the city’s employee housing fund (Fund 505) would have a projected
ending fund balance of $4,186,178.
With Option B, the city’s employee housing fund (Fund 505) would have a projected
ending fund balance of $3,607,037.
ALTERNATIVES: Council may explore the purchase of built units and/or other housing
options for essential and emergency city workers, recognizing the prioritization of housing
emergency workers near Aspen for response time necessities.
RECOMMENDATIONS: Staff welcomes Council feedback on the options provided for
the city’s internal housing program.
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CITY MANAGER COMMENTS:
ATTACHMENT A: City of Aspen Employer Sponsored Housing Program Memorandum
ATTACHMENT B: City’s Total Compensation Philosophy (TCP)
ATTACHMENT C: City Employee Survey Summary
ATTACHMENT D: City Employee Housing Guidelines
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MEMORANDUM
TO: Mayor and City Council
FROM: Alissa Farrell, Administrative Services Director
THROUGH: Sara Ott, City Manager
MEMO DATE: December 5, 2022
MEETING DATE: December 12, 2022
RE: City of Aspen - Employer Sponsored Housing Program
REQUEST OF COUNCIL: There is no request of Council at this time. This memo is to provide Council
with a summary of the progress thus far on the city’s employer sponsored housing program along with
information pertaining to next steps underway.
SUMMARY: Housing is a complex challenge in the Roaring Fork Valley and for the City of Aspen as
an employer. The city, as an employer, is not immune to the consequences of the lack of affordable
housing. The continual increase in turnover along with the cost of housing are catalysts for innovative,
expansive, and dedicated housing solutions in line with the city’s Total Compensation Philosophy
(TCP). Without comprehensively solving the impactful city employer housing dilemma, the problem
then cascades to the community through diminished services and lack of business continuity.
Consistent with City Council’s affordable housing goal and the city’s TCP, a considerable and
comprehensive focus is necessary to improve the housing predicament for city employees. In the TCP,
which is used as the framework to guide decision making related to all benefit programs such as city
employer sponsored housing, it states the city will provide housing support by:
•Responding to the high cost of living and lack of affordable housing through an array of housing
options.
•Reviewing creative and innovative opportunities on an ongoing basis to further enhance
employee support with housing challenges.
BACKGROUND: The City of Aspen continues to experience unprecedented turnover rates on average
of around 17% for 2022. In part, the high turnover rates are due to the continued affordable housing
shortage which impacts the city’s ability to recruit and retain employees for the community. This is an
increase from years prior when the city benchmarked 10% for a reasonable and realistic turnover rate
based on Employers Council (EC) public sector and resort community survey information. Additionally,
feedback obtained from city applicants on the cost of housing and the lack of housing options remains
a consistent theme. Many applicants withdraw their applications from posted recruitments upon
learning more about the housing market in the Roaring Fork Valley. City positions, particularly those
that often cannot be hired locally, remain unfilled for extended and unprecedented periods of time.
Vacant positions and turnover correlate to the community not being served to the fullest. On top of
applicants withdrawing soon after learning about the housing market, numerous prospective employees
Attachment A
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have not accepted job offers or have rescinded their job offers because of lack of housing and housing
options. This housing theme is also echoed within confidential and aggregate exit interview data which
reinforce that housing, and the lack of housing is also a contributing factor in an employee’s decision
to leave city employment.
In June 2022, the city distributed an employee housing survey to learn more about city employees and
their housing situations, needs, and how it potentially impacts their longtime employment status with
the city. The survey received 184 responses, close to a 60% response rate. Appendix B includes the
City of Aspen Summary Survey information. Highlights from the survey include:
• 53% of responding employees live in Aspen. 24% of employees live in Carbondale or farther
down valley.
• 80% of responding employees believe that if their housing situation were to improve that it would
be very likely or likely to influence their decision to remain employed with the City of Aspen.
• 97% of responding employees would prefer to own a home while 64% currently own.
For employees, the two driving factors that would move them out of the Roaring Fork Valley are 1) The
Lack of Affordable Housing and 2) The Cost of Living. The survey asked employees about their interest
in specific programs or housing opportunities the city could provide that could alleviate these concerns.
Percentage of responding employees interested in these programs or opportunities:
• Down Payment Assistance Program- 59%
• Shared Equity Program- 51%
• Employee Housing Unit in Aspen- 64%
• Employee Housing Unit in Basalt- 56%
Responding employees are most interested in employee housing units in Aspen with Basalt as a close
second, due to the decrease in commute and being able to work in the same city they reside.
Responses from the employee survey in conjunction with city hiring and employee retention data show
that housing is a barrier to employee’s long-term employment and job satisfaction. When applicable,
employees are significantly more likely to see themselves continuing to work for the City of Aspen and
live in the Roaring Fork Valley if their housing situation or options were to improve. High employee
turnover is both a high cost to the employer and the community.
The City of Aspen maintains an internal, employee housing program designed for city employees that
is separate from the Aspen Pitkin County Housing Authority (APCHA), which has grown to sixty-seven
units. A recent example of the housing inventory growth is the two additional housing units that were
approved by City Council on June 28, 2002, through Resolution #83 and #84, one unit in Snowmass
Village and another by the Aspen Airport Business Center.
The objective of the city’s internal housing program is to prioritize essential and emergency public
services through city positions, which in turn allows for a continued focus on maintaining community
priorities along with providing timely emergency services when needed. Although the city’s housing
inventory remains a critical recruitment and retention tool, turnover rates, exit interview data, and recent
city-wide housing survey reinforce that more innovative options and programs are necessary.
More information pertaining to the City of Aspen’s housing guidelines and inventory are included in
Appendix C.
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NEXT STEPS: In addition to recent Council approved, housing purchases for the employer sponsored
housing program, staff have gathered employee data through recruitments, exit surveys, stay
interviews and the recent city-wide employee housing survey. Moreover, Finance, Community
Development, and the Asset Department have included financial and real estate information, city
housing maintenance costs and planning as part of the data needed in the evaluation of the next steps.
Staff have recently paused, assessed all data, and determined that the next step is to bring all key
stakeholders together for a workshop in the first quarter of 2023. The objective of this workshop is to
develop a draft city employer sponsored housing strategic plan which would be provided to City Council
for discussion, input, and approval. To develop the draft internal housing strategic plan, the following
items would need to be developed, reviewed and/or refined during the workshop:
• The city’s employer sponsored housing program’s overarching and guiding philosophy as it
relates to the city’s TCP.
• The city’s goals and priorities over the next year and over multiple years. Examples of
prioritization of goals and resources include but are not limited to: acquisition of built units and/or
the development of employer housing units, employer housing geographical location review,
evaluation of the current down payment program and potential expansion, assessment of current
housing guidelines, category criteria and eligibility criteria, and transitional housing policy review.
• Reassessment and alignment of financial planning including the creation of a specific and
comprehensive long-range plan of the city employee housing fund (505 fund) to meet the
proposed housing philosophy, goals, and actionable steps.
• Identify necessary and dedicated resources to support and achieve the city’s employer
sponsored housing goals and priorities. This may include but is not limited to a centralized
staffing allocation request to manage the expansive, multi-faceted city housing program. As
referenced above, currently this program is managed by a myriad of departments in several
areas and is without a dedicated resource.
FINANCIAL IMPACTS: No financial impacts at this time.
Below is an overview of the current City Employee Housing Fund (Fund 505), which is intended to be
further developed for alignment with the City of Aspen’s employer sponsored housing strategic plan
after the planned workshop with key stakeholders:
The city’s employee housing fund is an internal service fund, meaning it is an aggregation of a citywide
program and centralized in its financial planning and accounting. The fund financially supports both
existing and new units created or acquired by the city. The revenues for this fund are generated by:
a) collecting rent from employees on the units made available to them; b) collecting a sale price if the
units are sold to employees (until an employee separates with the city at which time it is repurchased
by the city); and c) internal per full time equivalent/employee (FTE) charges assessed to each
department annually, to build up resources to further the program’s impact on assuring a stable
workforce for the community specifically focused on critical and emergency employees which result in
reliable services. This per FTE charge for 2023 is up to $10,000 annually. This annual amount will be
dependent and re-established to compliment the outcome of the internal housing workshop along with
the forthcoming City of Aspen employer sponsored housing strategic plan.
Presently, at a high level, the annual revenues into the fund equate to roughly $3.8 million, the vast
majority of ($3.5M) attributable to the internal per FTE charge. Of this total, for 2023, roughly $200,000
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is spent on operational related expenses for existing units and to provide for the down payment
assistance program. The down payment assistance program is available to full time employees in good
standing to help provide a secured, subordinate loan with the purchase of an APCHA or city housing
unit.
For 2023, an additional $325,000 is set aside for other capital maintenance for existing units (items like
roof, furnace, boiler, appliance replacements, etc.).
ENVIRONMENTAL IMPACTS: Environmental impacts will be considered and discussed during the
internal housing workshop and in the development of the city’s employer sponsored strategic plan.
ALTERNATIVES: Council may provide immediate direction and action related to the city’s employer
sponsored housing program in addition to or instead of the city’s internal housing workshop tentatively
scheduled for the first quarter of 2023.
CITY MANAGER COMMENTS:
Appendix A: Total Compensation Philosophy
Appendix B: City of Aspen Summary Survey
Appendix C: City of Aspen Housing Guidelines
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Attachment B CITY OF ASPEN
Total Compensation Philosophy
1 | City of Aspen TCP
Total Compensation Philosophy OVERVIEW
The City of Aspen’s Total Compensation Philosophy
provides a framework to guide decision-making on
compensation and benefits programs for employees.
As an employer of choice, the City encourages
an engaged and innovative workforce through
a Total Compensation Philosophy that supports
highly competitive and equitable pay. Employees
that embody the City’s values and mission enjoy
a unique and rewarding mountain culture experience.
City of Aspen EXPERIENCE
The City is committed to providing a Total Compensation Philosophy that attracts, retains,
and rewards a talented and motivated workforce that embraces the City’s Mission
statement and Organizational Values.
MISSION STATEMENT
To engage with positive civil dialogue, provide the highest quality innovative and efficient
municipal services, steward the natural environment, and support a healthy and
sustainable community for the benefit of future generations with respect for the work of our
predecessors.
ORGANIZATIONAL VALUES
SERVICE: We serve with a spirit of excellence, humility,
integrity, respect
PARTNERSHIP: Our impact is greater together
STEWARDSHIP: Investing in a thriving future for all by
balancing social, environmental, and financial
responsibilities
INNOVATION: Pursuing creative outcomes, grounded in
Aspen’s distinctive challenges and opportunities
The City invites employees to bring their passion and experience to affect positive
change through public service. Diverse perspectives, rich ideas, and a culture
with an appreciation for individuality and a sense of belonging are reinforced and
appreciated in the City. To pursue creative outcomes, demonstrate excellence,
and address the distinctive opportunities found in Aspen, the City recruits qualified
and talented employees who are prepared to manage complex and highly
technical challenges.
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CITY OF ASPEN
Total Compensation Philosophy
2 | City of Aspen TCP
HOW WE COMPARE OURSELVES
To respond to the unique Aspen environment and labor market conditions, the City will:
• Ensure we are a market leader locally, regionally, and as appropriate, nationally.
• Utilize a comparable labor market that includes both private and public sectors,
as appropriate.
• Regularly evaluate the City’s competitive labor market and compare similar
positions to other organizations whom the City competes with for its workforce.
WHAT WE OFFER
To achieve a sustainable, fiscally responsible, and highly competitive compensation
program, the City will provide the following core Total Compensation programs to City of
Aspen employees:
PAY
• Market-leading pay structures that consider the high cost of living in Aspen and the
surrounding area.
• Pay for similar work that is equitable both internally and externally and applied
consistently across the organization.
• Meaningful merit/performance increases that recognize employee’s contributions
and reflect the varying levels of employee achievements.
HEALTHY LIFESTYLE BENEFITS
• Comprehensive and competitive benefits programs designed to support the health
of City employees and their families.
• Robust employee benefits that encourage awareness of individual health and offer
resources to pursue healthy lifestyles.
• Benefits that are inclusive and meaningful at a variety of life stages.
• Work-life balance enhancements through offerings such as alternative work
schedules, employee wellness programs, and ancillary benefit programs.
PAY COMMUNICATION
• Clarity and transparency in managing the total compensation system.
• Communication of the value of the total compensation package offered to City
employees.
• Guidance and oversight in pay decisions to ensure fairness and consistency.
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CITY OF ASPEN
Total Compensation Philosophy
3 | City of Aspen TCP
WHAT WE OFFER - CONTINUED
PROFESSIONAL DEVELOPMENT & CONTINUOUS LEARNING
The City seeks to retain and develop employees by providing opportunities for learning
and professional development. The City and employees both play critical roles in
maintaining the success of a professional development culture.
• Foster a positive work environment that is meaningful, stimulating, and encourages
employee innovation and creativity.
• Provide a range of learning and professional development opportunities for all
employees that support personal and professional growth.
• Offer ongoing and timely communication to employees on their performance,
goals, and professional development throughout the year.
REWARDS & RECOGNITION
• Acknowledge and celebrate employees’ contributions that align
with the City’s mission statement and organizational values.
• Provide financial and non-financial incentives
for extraordinary and exemplary performance.
• Reward employees by offering learning opportunities
to promote professional growth and development.
HOUSING SUPPORT
• Respond to the high cost of living and
lack of affordable housing through
an array of housing program options.
• Review creative and innovative
opportunities on an ongoing basis
to further enhance employee support
with housing challenges.
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Attachment C
City of Aspen Employee Housing Survey: Summary
In June 2022, the city distributed an employee housing survey to learn more about COA
employees housing situations, needs, and how it potentially impacts their longtime
employment status with the city. The survey received 184 responses.
Highlights from the survey include:
•53% of responding employees live in Aspen. 24% of employees live in Carbondale or
farther down valley.
•80% of responding employees believe that if their housing situation were to improve
that it would be very likely or likely to influence their decision to remain employed with
the City of Aspen.
•97% of responding employees would prefer to own a home while 64% currently own.
As shown by the chart above, there is a wide split in the amount of stress employees
experience during to their housing situation. Employees either have long-term, secure housing
or they don’t; there is less room for in between.
For employees, the two driving factors that would move them out of the Roaring Fork Valley
are 1) The Lack of Affordable Housing and 2) The Cost of Living. The survey asks employees
about their interest in specific programs or housing opportunities the city could provide that
could alleviate these concerns.
Percentage of Responding Employees Interested in Programs or Opportunities:
Down Payment Assistance Program- 59%
Shared Equity Program- 51%
Employee Housing Unit in Aspen- 64%
Employee Housing Unit in Basalt- 56%
Responding employees are most interested in employee housing units in Aspen, due to the
decrease in commute and being able to work in the same city they live in.
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Attachment D
1 | Page
Revised June 2017; Revised November 2022
City of Aspen’s Employer Sponsored Housing Guidelines
The City of Aspen has an employer sponsored housing program, separate from the Aspen Pitkin
County Housing Authority (APCHA), available to city employees. The objective of this program is
to help the city recruit and retain an exceptional workforce which in turn, provides business
continuity and services to the Aspen community.
The housing category which determines the cost of the unit, is established according to
household income levels similar to the APCHA process.
The employer sponsored affordable housing inventory available for sale or rent to city
employees currently includes the following:
Table 1. City of Aspen Employer Sponsored Housing Inventory
Location # of Units Unit Types Unit Categories Priority / Use
Cemetery Lane 4 Two 2-bedroom
Two 3-bedroom
Fluctuates Based on
Income
No Stated Priority
Rental or Ownership
Burlingame 3 One 2-bedroom
Two 3-bedroom
Fluctuates Based on
Income
No Stated Priority
Ownership Only
Aspen Recreation
Center (ARC) 1 2-bedroom Category 3
Priority for
Recreation & Police
Staff
Rental Only
Animal Shelter 2 One 1-bedroom
One 2-bedroom
Category 2
(1 bedroom)
Category 3
(2 bedroom)
Animal Shelter Staff
Prioritized
Rental Only
Truscott 14
Three Studio
Eight 1-bedroom
Three 2-bedroom
Category 2
Category 3
No Stated Priority
Rental Only
Anderson Park 1 One 2-bedroom Fluctuates Based on
Income
Parks Staff Prioritized
Rental Only
East Hopkins Ave 1 Studio Fluctuates Based on
Income
No Stated Priority
Rental or Ownership
Alpine Grove 2 Two 2-bedroom Fluctuates Based on
Income
Transitional Units
Rental Only
Parks Campus 1 One 1-bedroom Category 2 Parks Staff Prioritized
Rental Only
Water Place 24
Three Studio
Six 1-bedroom
Seven 2-bedroom
Fluctuates Based on
Income
No Stated Priority
Rental or Ownership
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Appendix C
2 | Page
Revised June 2017; Revised November 2022
Six 3-bedroom
Two 4-bedroom
Marolt Open
Space 1 One 3-bedroom Fluctuates Based on
Income
Existing Agreement
Rental Only
Marolt Seasonal 3 Three 1-bedroom Fluctuates Based on
Income
Six Month
Transitional
Rental Only
550 Main Street 8
Three 1-bedroom
Three 2-bedroom
Two 3-bedroom
Fluctuates Based on
Income
No Stated Priority
Rental or Ownership
Aspen Mini
Storage 1 One 1-bedroom Fluctuates Based on
Income
Priority for Mini
Storage Support
Rental Only
Snowmass Village 1 One 2-bedroom Fluctuates Based on
Income
No Stated Priority
Rental or Ownership
All Units 67
Although Truscott and Marolt have additional flexibility in terms of employment eligibility, in
general, there are three categorizations below, not listed in order of priority, of full-time
employment to be considered to have priority for city housing before a unit then becomes
available to all full-time employees:
• Emergency Response Employees defined as employees that regularly and frequently
partake in standby practices or other emergency response activities. These positions
include but are not limited to police officers, electric line technicians, certain utilities
positions, or as designated by the City Manager. Positions may vary pending the needs
of the city.
• Critical Recruitment and Retention Employees which includes but is not limited to
assessing the number of qualified applications for a position, the specific job
qualifications, and the length of time to fill past, similar positions. Applicable positions
shall vary dependent on the job market. Other criteria may be included in the
assessment and approved by the City Manager.
• Agency Director and Department Head positions. An Agency Director is defined as an
executive position in charge of one or more departments who reports directly to the
City Manager (reference Ordinance No. 01, Series of 1985). A Department Head is
defined as the chief administrative personnel in charge of a department.
All full-time city staff are welcome to apply for open units. Applicants are reviewed based on
the above criteria first. Should no applicant meet the criteria, a thorough review of
applications will be conducted, and an applicant will be selected based on organizational needs.
89
Appendix C
3 | Page
Revised June 2017; Revised November 2022
Some units listed above may include additional costs including but not limited to HOA dues.
Employees must be in good standing to be considered for City of Aspen housing.
Transitional Housing:
Transitional housing options may be available for up to six to twelve months, pending the unit
and circumstance. Employees may qualify for transitional housing based on their situation,
examples include new employees that meet the priority criteria or an employee losing their
current housing due to a major life transition.
When determining the purchase price or rent of the unit, the city uses the APCHA category
guidelines. Because recruitment and retention of city employees fluctuates drastically over
time, the City Manager maintains authority to deviate from the above criteria when necessary
to meet the objectives of the City of Aspen. This authority is reserved for extreme situations.
Additionally, the owner or renter must not own developed residential real estate that has an
address within the Roaring Fork River Drainage areas situated in Eagle, Pitkin, Garfield or
Gunnison counties, or with the Colorado River Drainage area from and including the
unincorporated No Name area to and including Rifle, and including, but not limited to, Aspen,
Basalt and Carbondale, El Jebel, Glenwood Springs, Marble, Meredith, New Castle, No Name,
Redstone, Rifle, Snowmass, Snowmass Village and Woody Creek. This is consistent with the
APCHA exclusion zone.
The above information is a summary only of the City of Aspen’s internal housing program.
90
CoA Employer Sponsored
Housing Program
Alissa Farrell
Administrative Services Director March 27, 2023
91
CoA Employer Housing Recap
•Recruitment & Retention Data
•Employee Survey Highlights
•Internal Housing Overview
•Burlingame Ph III Options
•Questions/Discussion
92
City of Aspen’s Total Compensation Philosophy
(TCP)
93
CoA Recruitment & Retention Overview
• Similar to other large employers, the City of Aspen is experiencing:
• Unprecedented turnover rates in 2022 – 17%
• YTD turnover – 15%
•Affordable housing is a contributing factor to turnover = Community
impact
94
2022 Employee Housing Survey Highlights
(60% response rate)
•
95
CoA Employer Sponsored Housing Information
• • 67 current units in housing inventory
• • Current priority guidelines for employee eligibility:
•• Emergency Response/Public Safety Employees (police officers,
electric line technicians, etc.)
•Essential/Critical Recruitment and Retention Positions
•Agency Director or Department Head Positions
96
CoA Employer Sponsored Housing Timeline
Summer 2021: Total Compensation Philosophy Adopted by Council
Summer 2022: Employee Housing Survey Deployed
Summer 2022: Two Additional Housing Units Approved by Council
Q1 2023: Internal (city) Stakeholders Met and Developed a Draft City
Employer Sponsored Housing Strategic Plan
2023 Council Discussion to Add Burlingame Units
97
Burlingame Ph III Options for Discussion:
OPTION A: Development
costs without land and
infrastructure costs:
Size of Unit:Number of
Units:
Total Costs:
$472,154 One-bedroom Two $944,308
$684,956 Two-bedroom Three $2,054,868
=$2,999,176
OPTION B: Development
costs, including land and
infrastructure costs:
$563,327 One-bedroom Two $1,126,654
$817,221 Two-bedroom Three $2,451,663
=$3,578,317
98
Questions/Discussion
99