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HomeMy WebLinkAboutInformation Only 041624AGENDA INFORMATION UPDATE April 16, 2024 5:00 PM, I.Information Update I.A Work Session Follow Up - Possible Ballot Questions for 2024 and Food Tax Refund Awards in the Future I.B March 2024 Aspen Destination Marketing Report I.C ACRA Relocation I.D Work Session Follow Up - Board & Commission Expectations WorkSession FollowUp Memo 3-25-24.docx March2024_DM Report.pdf Dashboard_March.pdf Information Update_ACRA relocation_2024.04.16.pdf City Council Boards and Commissions Expectations Follow Up Memo.docx 1 1 1 INFORMATION ONLY MEMORANDUM WORK SESSION MEETING DATE:March 25, 2024 FOLLOW-UP MEMO DATE:April 1, 2024 AGENDA TOPICS:Possible Ballot Questions for 2024 and Food Tax Refund Awards in the Future PRESENTED BY:Pete Strecker, Finance Director COUNCIL MEMBERS PRESENT:All Members Present _______________________________________________________________________ This information only memo is to help document staff’s understanding of the March 25 work session discussion. If there are perceptions that deviate significantly to what is noted in the narrative below, please let staff know. (1) Possible Ballot Questions for 2024: Staff provided context for three possible ballot questions to consider for the upcoming November 2024 election and sought informal direction from the Council regarding whether or not to advance these questions for consideration and whether there was a need for polling to be performed. The three questions surrounded (a) the extension of existing sunset dates on the 1.0% housing real estate transfer tax (HRETT) and 0.45% sales tax for affordable housing and childcare; (b) changing the existing sales tax application on motor vehicle sales to instead be reflected as a use tax, consistent with the boarder taxing practice within the state; and (c) seeking voter approval of a new franchise agreement with Holy Cross to utilize public right-of-way in order to deliver electrical service to its customer base within Aspen. Majority consensus. Council direction on each of the potential ballot issues is noted in the following: (a) At least three Council members supported moving forward with adding questions to the November ballot to extend the current sunset dates on both the HRETT and sales tax supporting affordable housing and childcare. One member was not inclined to move forward with these questions at this time. Included with this direction, Council members overwhelmingly stated that polling was not necessary as a precursor to including these questions on the ballot. (b) All members of the Council supported adding a question to the November 2024 ballot to align the City’s taxation of motor vehicles with that of the rest of Colorado taxing authorities that levy a use tax on such purchases. (c) All five Council members supported adding a ballot question seeking voter approval of a new franchise agreement to allow use of the right-of-way by Holy 2 2 Cross Electric. Staff believes Council was supportive of staff’s recommendation for a 10-year term on a new agreement. Next Steps: Staff feels there is still an outstanding question needing clarification around both the tax rate in the future and how future tax receipts from a use tax on motor vehicles should be applied. Some Council members noted that they would support a shift in the application of tax dollars away from the current sales tax funds and may wish to consider applying those collections to perhaps roads/bridges or other transportation infrastructure needs. Staff would like further clarification on whether Council supports a change in where tax collections are dedicated in the future. (2) Food Tax Refund Awards in the Future: Staff provided a historical summary of the City’s food tax refund program that began in 1970 when the City adopted is first 1.0% sales tax. At that time, voters approved a $7 refund to offset the sales tax paid on food purchases at that time. Since its initial adoption, the refund amount has been increased multiple times and currently (2023) stands at $55 per individual (more for seniors and those legally blind). Staff analysis of the refund amount, adjusted over time for changes in inflation and change in the City’s sales tax rate, supports that a future refund of roughly $132 per person is appropriate. Majority consensus. At least three Council members supported consideration of the $132 per approved applicant for this refund and to incorporate this increase into the 2025 budget; two Council members suggested an incremental increase method. Council members largely also supported incorporating and adopting an escalator to this refund amount so that the refund continues to align with taxation on food purchases within the City of Aspen. Next Steps: Staff anticipates that Council would appreciate a follow up communication on this refund amount during the 2025 Proposed Budget. Components to the refund program that require further discussion include (a) should the additional benefit for seniors and legally blind applicants continue; (b) should there be any additional consideration for younger peoples that may experience a greater impact from this program? CITY MANAGER NOTES: __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 3 March 2024 Destination Marketing Report for Council Destination Marketing Staff Report: The team is in the middle of planning summer media buys with both BVK and TwoSix Digital. Campaigns will be live in April to promote summer visitation. Maroon Bells Reservations went live for the summer season on March 4 th . Information on the Maroon Bells summer season is available on our website. The community wide Leap Day Collaboration between Snowmass Tourism, Aspen Skiing Company and ACRA concluded on March 8th and was a success creating bookings for winter 2024-2025. We launched the DEIA Survey, in collaboration with Colorado Tourism Office, Snowmass Tourism & Challenge Aspen. This survey will provide a baseline for tourism entities to understand how we can support the business communities in DEIA initiatives to ensure a welcoming guest experience. Please take the survey! We hosted the Marketing Advisory Committee Meeting on March 19th. . Event coordination is ongoing this month in preparation for hosting the Fora Travel Advisor fam in April. Work has begun on the summer rack brochure. Invitations have been sent out for the August wedding planner fam. Nichole sent out the Q1 group e-news, it had an open rate of 32%. FOOD & WINE: The events team has brought on Shelley Roy and Gretchjen Smith to manage the FOOD & WINE volunteer program. They have been working diligently to update the online registration platform and launched the first round of volunteer sign ups (for returning volunteers) on March 15th. Online volunteer registration will be open to NEW volunteers starting April 2nd. There are still a handful of F&W passes on sale, but we do anticipate them selling out soon. Classic Countdown: 79 days! WINTERSKÖL: We have closed The Ode to Wintersköl Survey which asked the community for feedback on their participation and their thoughts on moving the event dates to December. These results have shown about 70% in favor of the date change. Results also revealed the top 3 reasons people attend Wintersköl 1. sense of community, 2. socializing, and 3. supporting Aspen’s small town character and top 3 events 1. Soupsköl, 2. Torchlight & Fireworks, 3. Snow sculptures. With final approval from our partners – TOSV, COA, ASC – the event will take place Dec. 14 – 16, 2024. Sales Tax Reports: As of the January 2024 Consumption Tax Report, released in March, the 2024 Tourism Promotion Fund is coming in just 4% behind 2023 collections and -8.6% behind projections. Recent Press Coverage Occupancy statistics and commentary, as well as visitor center counts, website data and air service information can now be found on the following page in the Defy Ordinary Dashboard. All data points are sourced from our monthly report with Blue Room Research and can be found in the Data Center on the website. 4 HOTEL OCCUPANCY ASE PASSENGER DATA VISITOR CENTER COUNTS KEY TAKEAWAYS WEBSITE STATS ACRA's 4 Visitor Information Centers saw a 38% increase in traffic in February 2024 as compared to February 2023. Staff assisted 10,242 individuals this year. MARCH 20 24 In February 2024, Aspen's lodging properties reported the following: •Occupancy fell 1.9% YOY to 77.5% •Average Daily Rate was just about flat YOY $1108 •Room Nights Available increased 12.3% YOY •Room Nights Booked increased 10.2% YOY February was a record month for ASE in terms of total passenger traffic, exceeding the prior record set in 2020 just before the pandemic shut-down. Total deplanements and enplanements were up +10.2% over last February, and up +2.5% over the prior February record set in 2020, another leap year. Aspen website top performing blogs and pages for Feb 2024 Blogs: 1./blog/5-reasons-ski-aspen-march (3,716 views) 2./blog/winter-family-fun-aspen-colorado (2,689 views) 3./blog/10-advantages-using-aspen-chamber-resort- association-dmo-your-groups-travel-aspen (1,318 views) 4./blog/5-reasons-consider-aspen-wedding (1,189 views) 5./blog/week-aspen (970views) Pages: 1./plan-trip/how-to/enjoy-aspen (29,708 views)2./plan-trip/trip-highlights/maroon-bells/reservations (10,560 views)3./plan-trip/trip-highlights (10,158 views)4./plan-trip/how-to/enjoy-aspen/seasons/winter (6,816 views) •Room Nights sold were up over last year as a result of adding Leap Day into the count along with the additional inventory available.•The U.S. is experiencing a highly unusual travel trade surplus with outbound travel outpacing inbound travel.•“Demand for short-term rental (STR) accommodations in the U.S. grew at a brisk rate of 15.6% year-over-year (YOY) in February.” o “While this high growth rate reflects how weak demand was in February 2023 and comes at a seasonal low point, hosts appreciated the abrupt change of pace after dismal weather around the country nearly screeched January’s growth to a halt.” 5 Page 1 of 2 Work Session FOLLOW-UP MEMORANDUM TO: Mayor Torre and City Council FROM: Jen Phelan, Development Manager THROUGH: Scott Miller, Public Works Director MEMO DATE: April 5, 2024 PUBLISH DATE : April 16, 2024 RE: March 25 work session follow-up: Aspen Chamber Resort Association (ACRA) temporary relocation As a result of the March 25th work session, staff is providing the following information to City Council: 1. The current square footage ACRA occupies in the Old Power House (OPH). 2. The square footage ACRA is expected to temporarily occupy in Armory Hall when the OPH is remodeled. 3. The square footage noted in the master lease agreement between ACRA and the City. 4. Available commercial space in and around town, as well as associated pricing. 1. Old Power House. ACRA is located on the ground floor of the OPH. Back of house, inclusive of office space, storage and a kitchenette, equals +/-2,309 sq. ft. The visitor center is comprised of a service desk area, informational displays and common circulation to the building equaling +/-427 sq. ft. with about +/- 100 sq. ft. being used for two reception desks. Figure 1 shows the current layout with the back of house in blue and visitor center in yellow. Figure 1: ACRA floor plan at the OPH 6 Page 2 of 3 2. Armory Hall, Temporary Relocation. Resolution No. 46 (Series of 2023), approves the City of Aspen and ACRA Tourism Promotion Fund Agreement (hereafter master lease) between the city and ACRA. The master lease allows for ACRA to exclusively use the ground floor of Armory Hall on an interim basis prior to remodel/reuse of the building. Not all of the ground floor will be leased by ACRA. Figure 2, shows the current proposal. Back of house, inclusive of office space and storage equals +/-2,453 sq. ft. The visitor center is comprised of a service window area, equaling +/-195 sq. ft. Common to the building, an entry lobby, circulation corridor, bathrooms, and kitchenette will be shared with other building occupants or users. This area will also include informational displays for the public and a small lounge area. The common area is +/- 1,278 sq. ft. Figure 2 shows the current layout with back of house in blue, visitor center in yellow, and common area in green. 3. ACRA/City Master Lease. Once Armory Hall is remodeled, the master lease1 allows ACRA exclusive use of not less than 2,500 sq. ft. of finished office space. It also notes that the building will include “common bathrooms, kitchen, elevator and meeting rooms” for use by ACRA. Provision of an additional, approximately 1,000 sq. ft. for a visitor center on the first floor is also included in the master lease. 1 The resolution and lease agreement can be reviewed at: https://records.aspen.gov/WebLink/DocView.aspx?id=2036228&dbid=0&repo=LFRecords, Figure 2: ACRA temporary floor plan at Armory Hall Visitor Center 7 Page 3 of 3 4.Office space rental options. Staff reached out to a local realtor and asked for information pertaining to the ability to locate ACRA in leasable space outside of Armory Hall, assuming the need for approximately 3,000 - 3,500 sq. ft. Below, Table 1 provides available listings within the Aspen area. Table 1: Active Listings Active Click to view listing(s) MLS Address List Date Lease Date List $ Unit SF Monthly Base Rent Monthly NNN Total Monthly 167817 201 N Mill Street 101 12/9/2020 NA $65 4,062 $22,003 $8,463 $30,465 177327 120 E Main Street 10/31/2022 NA $65 5,710 $30,929 $18,082 $49,011 175459 332 W Main Street 101 A 6/8/2022 NA $50 2,225 $9,271 $2,410 $11,681 182213 210 AABC AA 1/9/2024 NA $45 4,554 $17,078 Gross Lease $17,078 Notes: 332 W. Main is available through August 2025 Summary/Requested Direction. To date, approximately $20,000.00 has either been spent or earmarked for design and cost estimating services associated with ACRA’s temporary relocation to the Armory, leaving $180,000.00 in unspent funds. Staff has targeted a fall, off-season move of ACRA into the Armory. A building permit has been accepted by the building department. To maintain this schedule, it is necessary to promptly release a RFP for contractor services. Continued postponement of procurement of contractor services will delay the organization’s move, potentially resulting in impacts to the schedule of the OPH remodel. Staff requests confirmation to temporarily relocate ACRA to the Armory. Please inform Scott Miller by Tuesday, April 16th if relocation and expenditure of the balance of funds is not supported. 8 FOLLOW-UP MEMORANDUM CITY COUNCIL WORK SESSION WORK SESSION MEETING DATE:March 18, 2024 FOLLOW-UP MEMO DATE:April 16, 2024 AGENDA TOPIC:Boards and Commissions Expectations PRESENTED BY:Jenn Ooton, Senior Project Manager COUNCIL MEMBERS PRESENT:Mayor Torre, Councilmembers John Doyle, Sam Rose, Bill Guth and Ward Hauenstein ______________________________________________________________________ WORK SESSION DISCUSSION SUMMARY: During this work session Council discussed the ongoing work of boards and commissions, including on the topic of hybrid meetings, communication with and from these boards, and general best practices in governance for boards and commissions. Council also discussed increased transparency through the implementation of a software solution that allows people to access Council emails without filing a Colorado Open Records Act request. Following the discussion, Council provided the following direction: 1.Topic:Confirmation that bylaws and the Municipal Code language should be updated to be more uniform and to be in accordance with best practices for boards and commissions. Council majority consensus. Council agreed with this approach. 2.Topic:Establish expectations for written and in-person communications from boards and commission with Council Council majority consensus. Council agreed with this approach. 3.Topic:Support for moving toward having all boards and commissions hold hybrid meetings. Council majority consensus. Council agreed with this approach. 4.Topic:Implementation of an email transparency solution that limits staff time to respond to Colorado Open Records Act requests and that allows the public to review nearly all emails sent to and from Councilors in real time. Only limited emails such as those that are attorney client privileged would be withheld from the system. Council majority consensus. Council agreed with this approach. 9 NEXT STEPS: 1.Staff will work on uniform set of bylaws and proposed changes to the Municipal Code to bring back for Council discussion. These changes will address consistent expectations for boards and commissions including for interaction with the public, hybrid meetings and communication with Council. 2.Staff will work on implementing an email transparency software solution for Council emails. CITY MANAGER NOTES: ______________________________________________________________________ ______________________________________________________________________ __________________________________________________________ 10