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HomeMy WebLinkAboutInformation Update 0412221 AGENDA INFORMATION UPDATE April 12, 2022 5:00 PM, I.INFORMATION UPDATE I.A.Economic Planning Systems, Short-term Rental Fee and Employee Generation Studies I.B.Wheeler Phase 2 Remobilization 1 INFO ONLY - MEMORANDUM TO:Mayor Torre and Aspen City Council FROM:Phillip Supino, Community Development Director MEMO DATE:March 31, 2022 MEETING DATE:March 8, 2022 RE:Info Only – Contract No. 097, 2022 – Economic Planning Systems, Short-term Rental Fee and Employee Generation Studies SUMMARY AND BACKGROUND: Analysis of the employee generation and appropriateness of potential fees for short-term rentals is an important aspect of the work ComDev staff is conducting under the protection of the moratorium established by Ord. No. 6, Series of 2022. Consultant services are necessary to support that work. The City has contracted with Economic Planning Systems (EPS), and RRC Associates (the City’s employee generation and mitigation study consultant) as a sub-contractor, to assist in this analysis. The work is being completed during the 2022 residential development moratorium. DISCUSSION: Ord. No. 6, Series of 2022 granted certain procurement authority to the City Manager to support the work desired by Council to be conducted during the moratorium. This authority was granted in recognition of the relatively short timeline provided by Ord. 6 to conduct complex analysis and code amendments and the need to quickly contract with service providers to assist in that work. Commensurate with the procurement clause in Ord. 6, the City Manager approved the contract with EPS for a fee not to exceed $77,000 on March 25,, 2022. The work under this contract has commenced. FINANCIAL IMPACTS: The value of the approved contract is up to $77,00. ENVIRONMENTAL IMPACTS: N/A ALTERNATIVES:N/A RECOMMENDATIONS: N/A CITY MANAGER COMMENTS: EXHIBITS: Exhibit A – Contract No. 097, 2022: Contract for Services with EPS 2 Agreement Professional Services Page 0 CITY OF ASPEN STANDARD FORM OF AGREEMENT PROFESSIONAL SERVICES City of Aspen Contract No.: 2022-097 AGREEMENT made this 23 day of March, in the year 2022. BETWEEN the City: Contract Amount: The City of Aspen c/o Sara Ott 427 Rio Grande Place Aspen, Colorado 81611 Phone: (970) 920-5079 And the Professional: Andrew Knudtsen c/o Economic & Planning Systems (EPS) 730 17th Street Denver, CO 80202 Phone: 303-623-3557 aknudtsen@epsdenver.com For the Following Project: Analysis of several aspects of Aspen’s short term rental context that importantly studies the employee generation impacts of STR use. EPS will be subcontracting with RRC Associates for this work. Exhibits appended and made a part of this Agreement: If this Agreement requires the City to pay an amount of money in excess of $50,000.00 it shall not be deemed valid until it has been approved by the City Council of the City of Aspen. City Council Approval: Date: ___________________________ Resolution No.:___________________ Exhibit A: Scope of Work and Fee Schedule Total: $77,000 Not to Exceed DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 3 Agreement Professional Services Page 1 The City and Professional agree as set forth below. 1. Scope of Work. Professional shall perform in a competent and professional manner the Scope of Work as set forth at Exhibit A attached hereto and by this reference incorporated herein. 2. Completion. Professional shall commence Work immediately upon receipt of a written Notice to Proceed from the City and complete all phases of the Scope of Work as expeditiously as is consistent with professional skill and care and the orderly progress of the Work in a timely manner. The parties anticipate that all Work pursuant to this Agreement shall be completed no later than December 31, 2022. Upon request of the City, Professional shall submit, for the City's approval, a schedule for the performance of Professional's services which shall be adjusted as required as the project proceeds, and which shall include allowances for periods of time required by the City's project engineer for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This schedule, when approved by the City, shall not, except for reasonable cause, be exceeded by the Professional. 3. Payment. In consideration of the work performed, City shall pay Professional on a time and expense basis for all work performed. The hourly rates for work performed by Professional shall not exceed those hourly rates set forth at Exhibit A appended hereto. Except as otherwise mutually agreed to by the parties the payments made to Professional shall not initially exceed the amount set forth above. Professional shall submit, in timely fashion, invoices for work performed. The City shall review such invoices and, if they are considered incorrect or untimely, the City shall review the matter with Professional within ten days from receipt of the Professional's bill. 4. Non-Assignability. Both parties recognize that this Agreement is one for personal services and cannot be transferred, assigned, or sublet by either party without prior written consent of the other. Sub-Contracting, if authorized, shall not relieve the Professional of any of the responsibilities or obligations under this Agreement. Professional shall be and remain solely responsible to the City for the acts, errors, omissions or neglect of any subcontractors’ officers, agents and employees, each of whom shall, for this purpose be deemed to be an agent or employee of the Professional to the extent of the subcontract. The City shall not be obligated to pay or be liable for payment of any sums due which may be due to any sub-contractor. 5. Termination of Procurement. The sale contemplated by this Agreement may be canceled by the City prior to acceptance by the City whenever for any reason and in its sole discretion the City shall determine that such cancellation is in its best interests and convenience. 6. Termination of Professional Services. The Professional or the City may terminate the Professional Services component of this Agreement, without specifying the reason therefor, by giving notice, in writing, addressed to the other party, specifying the effective date of the termination. No fees shall be earned after the effective date of the termination. Upon any termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports or other material prepared by the Professional pursuant to this Agreement shall become the property of the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for damages sustained by the City by virtue of any breach of this Agreement by the Professional, and the City may withhold any payments to the Professional for the purposes of set-off until such time as the exact amount of damages due the City from the Professional may be determined. DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 4 Agreement Professional Services Page 2 7. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this agreement shall result in,or be construed as establishing an employment relationship. Professional shall be, and shall perform as, an independent Contractor who agrees to use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or servant of Professional shall be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this contract. The manner and means of conducting the work are under the sole control of Professional. None of the benefits provided by City to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Professional. Professional shall be solely and entirely responsible for its acts and for the acts of Professional's agents, employees, servants and subcontractors during the performance of this contract. Professional shall indemnify City against all liability and loss in connection with, and shall assume full responsibility for payment of all federal, state and local taxes or contributions imposed or required under unemployment insurance, social security and income tax law, with respect to Professional and/or Professional's employees engaged in the performance of the services agreed to herein. 8. Indemnification. The Professional agrees to indemnify, hold harmless and, not excluding the City‘s right to participate, defend the City, its subsidiary, parent, associated and/or affiliated entities, successors, or assigns, its elected officials, trustees, employees, agents, volunteers, and any jurisdiction or agency issuing permits for any work included in the project, hereinafter referred to as indemnitee, from all suits and claims, including attorney's fees and cost of litigation, actions, loss, damage, expense, cost or claims of any character or any nature arising out of the work done in fulfillment of the terms of this Contract or on account of any act, claim or amount arising or recovered under workers' compensation law or arising out of the failure of the Professional to conform to any statutes, ordinances, regulation, law or court decree, to the extent the claim was caused by Professional’s sole negligence. It is agreed that the Professional will be responsible for primary loss investigation, defense, and judgment costs where this Contract of indemnity applies. In consideration of the award of this Contract, the Professional agrees to waive all rights of subrogation against the City, its subsidiary, parent, associated and/or affiliated entities, successors, or assigns, its elected officials, trustees, employees, agents, and volunteers for losses arising from the work performed by the Professional for the City. The Professional’s obligation to indemnify the City of Aspen under this Contract shall in no circumstance be interpreted as a requirement or obligation for Professional to indemnify the City of Aspen, or City affiliated stakeholders, from City of Aspen of Affiliates own negligence or willful wrongdoing. 8. Professional's Insurance. (a) Professional agrees to procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. The Professional shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 8 above by reason of its failure to procure or maintain insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. (b) Professional shall procure and maintain, and shall cause any subcontractor of the Professional to procure and maintain, the minimum insurance coverages listed below. Such DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 5 Agreement Professional Services Page 3 coverages shall be procured and maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. (i) Worker's Compensation insurance to cover obligations imposed by applicable laws for any employee engaged in the performance of work under this contract, and Employers' Liability insurance with minimum limits of ONE MILLION DOLLARS ($1,000,000.00) for each accident, ONE MILLION DOLLARS ($1,000,000.00) disease - policy limit, and ONE MILLION DOLLARS ($1,000,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted for the Worker's Compensation requirements of this paragraph. (ii) Commercial General Liability insurance with minimum combined single limits of TWO MILLION DOLLARS ($2,000,000.00) each occurrence and THREE MILLION DOLLARS ($3,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall include coverage for explosion, collapse, and underground hazards. The policy shall contain a severability of interests provision. (iii) Comprehensive Automobile Liability insurance with minimum combined single limits for bodily injury and property damage of not less than ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate with respect to each Professional's owned, hired and non- owned vehicles assigned to or used in performance of the Scope of Work. The policy shall contain a severability of interests provision. If the Professional has no owned automobiles, the requirements of this Section shall be met by each employee of the Professional providing services to the City under this contract. (iv) Professional Liability insurance with the minimum limits of ONE MILLION DOLLARS ($1,000,000) each claim and ONE MILLION DOLLARS ($1,000,000) aggregate. (c) Every policy required above shall be primary insurance, and any insurance carried by the City, its officers or employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Professional. No additional insured endorsement to the policy required above shall contain any exclusion for bodily injury or property damage arising from completed operations. The Professional shall be solely responsible for any deductible losses under any policy required above. (d) The certificate of insurance provided to the City shall be completed by the Professional's insurance agent as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect, and shall be reviewed and approved by the City DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 6 Agreement Professional Services Page 4 prior to commencement of the contract. No other form of certificate shall be used. The certifi- cate shall identify this contract and shall provide that the coverages afforded under the policies shall not be canceled, terminated or materially changed until at least thirty (30) days prior written notice has been given to the City. (e) Failure on the part of the Professional to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of contract upon which City may immediately terminate this contract, or at its discretion City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies so paid by City shall be repaid by Professional to City upon demand, or City may offset the cost of the premiums against monies due to Professional from City. (f) City reserves the right to request and receive a certified copy of any policy and any endorsement thereto. (g) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations (presently $350,000.00 per person and $990,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. 9. City's Insurance. The parties hereto understand that the City is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA Proper- ty/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Risk Management Department and are available to Professional for inspection during normal business hours. City makes no representations whatsoever with respect to specific coverages offered by CIRSA. City shall provide Professional reasonable notice of any changes in its membership or participation in CIRSA. 10. Completeness of Agreement. It is expressly agreed that this agreement contains the entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or written representations, agreements, warranties or promises pertaining to the project matter thereof not expressly incorporated in this writing. 11. Notice. Any written notices as called for herein may be hand delivered or mailed by certified mail return receipt requested to the respective persons and/or addresses listed above. 12. Non-Discrimination. No discrimination because of race, color, creed, sex, marital status, affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or religion shall be made in the employment of persons to perform services under this contract. Professional agrees to meet all of the requirements of City's municipal code, Section 15.04.570, pertaining to non- discrimination in employment. 13. Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be waived except by the written consent of the City, and forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver of any term, covenant, DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 7 Agreement Professional Services Page 5 or condition to be performed by Professional to which the same may apply and, until complete performance by Professional of said term, covenant or condition, the City shall be entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or indulgence. 14. Execution of Agreement by City. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. Notwithstanding anything to the contrary contained herein, this Agreement shall not be binding upon the City unless duly executed by the Mayor of the City of Aspen (or a duly authorized official in his absence) following a Motion or Resolution of the Council of the City of Aspen authorizing the Mayor (or a duly authorized official in his absence) to execute the same. 16. Worker Without Authorization prohibited – CRS §8-17.5-101 & §24-76.5-101 Purpose. During the 2021 Colorado legislative session, the legislature passed House Bill 21- 1075 that amended current CRS §8-17.5-102 (1), (2)(a), (2)(b) introductory portion, and (2)(b)(III) as it relates to the employment of and contracting with a “worker without authorization” which is defined as an individual who is unable to provide evidence that the individual is authorized by the federal government to work in the United States. As amended, the current law prohibits all state agencies and political subdivisions, including the Owner, from knowingly hiring a worker without authorization to perform work under a contract, or to knowingly contract with a Consultant who knowingly hires with a worker without authorization to perform work under the contract. The law also requires that all contracts for services include certain specific language as set forth in the statutes. The following terms and conditions have been designed to comply with the requirements of this new law. Definitions. The following terms are defined by this reference are incorporated herein and in any contract for services entered into with the Owner. 1. "E-verify program" means the electronic employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, that is jointly administered by the United States Department of Homeland Security and the social security Administration, or its successor program. 2. "Department program" means the employment verification program established pursuant to Section 8-17.5-102(5)(c). 3. "Public Contract for Services" means this Agreement. 4. "Services" means the furnishing of labor, time, or effort by a Consultant or a subconsultant not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. 5. “Worker without authorization” means an individual who is unable to provide evidence that the individual is authorized by the federal government to work in the United States By signing this document, Consultant certifies and represents that at this time: 1. Consultant shall confirm the employment eligibility of all employees who are newly hired for employment to perform work under the public contract for services; and DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 8 Agreement Professional Services Page 6 2. Consultant has participated or attempted to participate in either the e-verify program or the department program in order to verify that new employees are not workers without authorization. Consultant hereby confirms that: 1. Consultant shall not knowingly employ or contract with a worker without authorization to perform work under the Public Contract for Services. 2. Consultant shall not enter into a contract with a subconsultant that fails to certify to the Consultant that the subconsultant shall not knowingly employ or contract with a worker without authorization to perform work under the Public Contract for Services. 3. Consultant has confirmed the employment eligibility of all employees who are newly hired for employment to perform work under the public contract for services through participation in either the e-verify program or the department program. 4. Consultant shall not use the either the e-verify program or the department program procedures to undertake pre-employment screening of job applicants while the Public Contract for Services is being performed. If Consultant obtains actual knowledge that a subconsultant performing work under the Public Contract for Services knowingly employs or contracts with a worker without authorization, Consultant shall: 1. Notify such subconsultant and the Owner within three days that Consultant has actual knowledge that the subconsultant is employing or subcontracting with a worker without authorization: and 2. Terminate the subcontract with the subconsultant if within three days of receiving the notice required pursuant to this section the subconsultant does not stop employing or contracting with the worker without authorization; except that Consultant shall not terminate the Public Contract for Services with the subconsultant if during such three days the subconsultant provides information to establish that the subconsultant has not knowingly employed or contracted with a worker without authorization. Consultant shall comply with any reasonable request by the Colorado Department of Labor and Employment made in the course of an investigation that the Colorado Department of Labor and Employment undertakes or is undertaking pursuant to the authority established in Subsection 8- 17.5-102 (5), C.R.S. If Consultant violates any provision of the Public Contract for Services pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the Owner may terminate this Agreement. If this Agreement is so terminated, Consultant shall be liable for actual damages to the Owner arising out of Consultant’s violation of Subsection 8-17.5-102, C.R.S. It is agreed that neither this agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 9 Agreement Professional Services Page 7 If any of the provisions of this agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. 17. Warranties Against Contingent Fees, Gratuities, Kickbacks and Conflicts of Interest. (a) Professional warrants that no person or selling agency has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Professional for the purpose of securing business. (b) Professional agrees not to give any employee of the City a gratuity or any of fer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to this Agreement, or to any solicitation or proposal therefore. (c) Professional represents that no official, officer, employee or representative of the City during the term of this Agreement has or one (1) year thereafter shall have any interest, direct or indirect, in this Agreement or the proceeds thereof, except thos e that may have been disclosed at the time City Council approved the execution of this Agreement. (d) In addition to other remedies it may have for breach of the prohibitions against contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right to: 1. Cancel this Purchase Agreement without any liability by the City; 2. Debar or suspend the offending parties from being a Professional, contractor or subcontractor under City contracts; 3. Deduct from the contract price or consideration, or otherwise recover, the value of anything transferred or received by the Professional; and 4. Recover such value from the offending parties. 18. Fund Availability. Financial obligations of the City payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. If this Agreement contemplates the City utilizing state or federal funds to meet its obligations herein, this Agreement shall be contingent upon the availability of those funds for payment pursuant to the terms of this Agreement. 19. General Terms. (a) It is agreed that neither this Agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 10 Agreement Professional Services Page 8 (b) If any of the provisions of this Agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. (c) The parties acknowledge and understand that there are no conditions or limitations to this understanding except those as contained herein at the time of the execution hereof and that after execution no alteration, change or modification shall be made except upon a writing signed by the parties. (d) This Agreement shall be governed by the laws of the State of Colorado as from time to time in effect. Venue is agreed to be exclusively in the courts of Pitkin County, Colorado. 20. Electronic Signatures and Electronic Records This Agreement and any amendments hereto may be executed in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one agreement binding on the Parties, notwithstanding the possible event that all Parties may not have signed the same counterpart. Furthermore, each Party consents to the use of electronic signatures by either Party. The Scope of Work, and any other documents requiring a signature hereunder, may be signed electronically in the manner agreed to by the Parties. The Parties agree not to deny the legal effect or enforceability of the Agreement solely because it is in electronic form or because an electronic record was used in its formation. The Parties agree not to object to the admissibility of the Agreement in the form of an electronic record, or a paper copy of an electronic documents, or a paper copy of a document bearing an electronic signature, on the grounds that it is an electronic record or electronic signature or that it is not in its original form or is not an original. 20. Successors and Assigns. This Agreement and all of the covenants hereof shall inure to the benefit of and be binding upon the City and the Professional respectively and their agents, representatives, employee, successors, assigns and legal representatives. Neither the City nor the Professional shall have the right to assign, transfer or sublet its interest or obligations hereunder without the written consent of the other party. 21. Third Parties. This Agreement does not and shall not be deemed or construed to confer upon or grant to any third party or parties, except to parties to whom Professional or City may assign this Agreement in accordance with the specific written permission, any right to claim damages or to bring any suit, action or other proceeding against either the City or Professional because of any breach hereof or because of any of the terms, covenants, agreements or conditions herein contained. 22. Attorney’s Fees. In the event that legal action is necessary to enforce any of the provisions of this Agreement, the prevailing party shall be entitled to its costs and reasonable attorney’s fees. 23. Waiver of Presumption. This Agreement was negotiated and reviewed through the mutual efforts of the parties hereto and the parties agree that no construction shall be made or presumption shall arise for or against either party based on any alleged unequal status of the parties in the negotiation, review or drafting of the Agreement. 24. Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion. Professional certifies, by acceptance of this Agreement, that neither it nor its principals is presently DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 11 Agreement Professional Services Page 9 debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in any transaction with a Federal or State department or agency. It further certifies that prior to submitting its Bid that it did include this clause without modification in all lower tier transactions, solicitations, proposals, contracts and subcontracts. In the event that Professional or any lower tier participant was unable to certify to the statement, an explanation was attached to the Bid and was determined by the City to be satisfactory to the City. 25. Integration and Modification. This written Agreement along with all Contract Documents shall constitute the contract between the parties and supersedes or incorporates any prior written and oral agreements of the parties. In addition, Professional understands that no City official or employee, other than the Mayor and City Council acting as a body at a council meeting, has authority to enter into an Agreement or to modify the terms of the Agreement on behalf of the City. Any such Agreement or modification to this Agreement must be in writing and be executed by the parties hereto. 26. Authorized Representative. The undersigned representative of Professional, as an inducement to the City to execute this Agreement, represents that he/she is an authorized representative of Professional for the purposes of executing this Agreement and that he/she has full and complete authority to enter into this Agreement for the terms and conditions specified herein. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement of which shall be deemed an original on the date first written above. CITY OF ASPEN, COLORADO: PROFESSIONAL: ________________________________ ______________________________ [Signature] [Signature] By: _____________________________ By: _____________________________ [Name] [Name] Title: ____________________________ Title: ____________________________ Date: ___________________ Date: ___________________ Approve as to Form: _____________________ City Attorney General Conditions and Special Conditions can be found on City of Aspen Website. https://www.cityofaspen.com/497/Purchasing DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57 3/23/2022 | 6:28:51 PM PDT Andrew Knudtsen Managing Principal DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 City Manager Sara Ott 3/25/2022 | 11:42:14 AM PDT 3/25/2022 | 1:54:42 PM MDT 12 Agreement Professional Services Page 10 EXHIBITS A and B - PROFESSIONAL SERVICES AGREEMENT Project Scope and Fee Schedule March 17, 2022 Ben Anderson, Principal Long Range Planner, Community Development City of Aspen 130 S. Galena Street Aspen, CO 81611 Via email: ben.anderson@aspen.gov Dear Ben: RRC Associates and Economic & Planning Systems are pleased to provide you with this proposal to conduct a vacation rental housing regulatory fee study Please don’t hesitate to contact us in the event that you would like to explore modifications to the scope of work and associated budget. Background On December 8, 2021, the Aspen City Council passed a temporary moratorium on selected new residential land use applications in certain zoning districts, on certain residential building permit applications, and on the issuance of new vacation rental licenses, in order to assess issues and develop policy responses regarding affordable housing, short-term rentals, climate change, and selected other community concerns. A sharp rise in housing prices and a decrease in the availability of affordable/attainable housing are among the reasons for the moratorium. During the moratorium window, among other work items, the City wishes to explore the possibility of assessing a vacation rental housing regulatory fee, including a component associated with employment generation and housing demand, and a component associated with City of Aspen administration of STR regulatory programs. Regarding vacation rentals (aka short-term rentals, STRs), an Aspen staff memo prepared for a November 16, 2021 Council work session summarized selected market data, community impacts, and potential regulatory approaches to STRs. The memo notes that STRs impact the housing market by putting downward pressure on the supply of housing and labor (by taking some units out of the long-term occupancy pool), while also putting upward pressure on property values and demand for labor to serve STR homes and STR visitors. DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 13 Agreement Professional Services Page 11 Relatedly, a November 5, 2021 RRC report for the City of Aspen examined selected characteristics and selected employment generation measures associated with STRs. Based on a reanalysis of the 2015 residential employment generation study data, the study found that STRs generate more management and upkeep employment than housing units not used as STRs. Scope of Work, Timeline and Budget EPS, in conjunction with RRC, has developed the following approach and Scope of Services that addresses three topics and objectives:  Characterize Short Term Rentals (STRs) – This step would enable the City to better understand the nature of STRs in Aspen. This study aims to ground the data analysis provided in later tasks with an overview of the industry and how it performs within Aspen. The report will include data on the location of STRs, their use and occupancy characteristics, economic impact, and impact on housing available to the local resident workforce. (We recognize that some of this work has already been done by Aspen staff, e.g. per November 16, 2021 Council Meeting staff memo, as well as by RRC in its November 5, 2021 report).  Housing Impacts – One of the strongest criticisms of STRs is that they may take housing out of the inventory that could be available to the local workforce and/or increase the cost of the remaining housing that is available. This study will evaluate the types of units used as STRs and gauge the degree to which STRs contribute to workforce housing shortages.  Consider Tools to Regulate Impacts of STRs – Aspen and other mountain resort communities in Colorado are evaluating tools to regulate the impact of STRs on housing availability and affordability. There is interest in considering a fee-based approach that would levy an annual licensing fee. The fee revenue would be dedicated to providing a specific purpose such as housing development or housing programs. The effort will culminate in a study providing the Town with a rational nexus upon which it can base adoption of an STR fee schedule. a.Task 1: Project Initiation and Data Collection EPS will host a telephone or video conference meeting to kick off the study, with the following topics to be covered.  Data collection and staff contacts  Key questions to be addressed in the study  Any limited or targeted stakeholder outreach (e.g. the existing technical advisory committee, and/or 4 to 6 community members engaged on this issue).  Confirmation of acquisition and utilization of data from other providers, such as Destimetrics, AirDNA, and MuniRevs.  Develop a working definition of Dispersed STRs (STRs). This study should distinguish between STRs and purpose built accommodations, such as hotels. DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 14 Agreement Professional Services Page 12 b.Task 2: Spatial and Economic Activity Analysis This task includes an analysis of available data on dispersed STRs and other accommodations in Aspen. The purpose of this task is to identify and analyze citable data on STRs to inform policy decisions. Based on initial conversations with City staff on available information, we expect to cover the following areas in this task. If data are available for a longer time period than current year or year-to-date, historical data will also be presented.  Baseline trends – Citywide trends in the total accommodations bed base, annual and seasonal occupancy rates, and average daily rates (ADR).  Inventory and location – Total number of STRs tabulated and mapped citywide and by area/neighborhood.  STR Unit characteristics – Housing unit types and age used as STRs  Economic characteristics – Estimated occupancy rates (days or weeks of occupancy), average rental rates, and tax revenue generated from STRs.  Guest spending – Spending patterns of guests will be analyzed and compared to traditional lodging types subject to available data. This is an important input to the Task 4 Nexus Study.  Rental income to owner – Estimated rental income to STR owners, analyzed by unit characteristics and location.  Management type – Estimate the number of units managed by traditional property management companies (but cross listed on STR sites) and by individuals.  COVID-19 effects – Strive to evaluate how the pandemic affected the lodging market, and if STRs increased their market share compared to purpose built accommodations (impact on hotel market). c.Task 3: Housing Market Impacts In this task, we will expand on the housing aspects covered in Task 2. EPS will develop an analysis of home values citywide or by neighborhood and compare them to the value of units used as STRs. The study addresses both Supply Side factors and Demand Side factors of the economic equation and as part of the Supply Side evaluation, EPS will focus on impacts to the housing inventory in this task by addressing the following questions:  How does STR use influence property values? How do values vary by area?  Are STRs powerful enough cash flow generators that buyers are purchasing homes on expected cash flow rather than similar market values?  What is the spectrum of home values used as STRs? What portion of this inventory is or was potentially available to local residents as rental or for-sale housing? d.Task 4: Existing Survey and Peer Community Research (RRC) DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 15 Agreement Professional Services Page 13 RRC has conducted numerous guest surveys in Aspen and other mountain resorts in Colorado and the Intermountain West. Their data cover accommodations types, booking method, party characteristics, and spending patterns. RRC will mine its data for relevant information on STR use by guests, along with other relevant data such as Aspen sales tax collections and Aspen STR inventory and occupancy patterns, in order to estimate aggregate spending in Aspen by STR guests. e.Task 5: STR Fee Nexus Study The purpose of this task is to establish a nexus between STR use and affordable/ workforce housing demand. The working assumption in this Scope of Work is that fee revenue would be used for housing development or to fund housing programs such as buy downs. The nexus study will address two categories of impact: one related to impacts to affordable housing, and the other related to City costs incurred to administer STR programs (e.g. life safety inspections, good neighbor enforcement, etc.). EPS will explore two approaches in the affordable housing nexus study: an economic impact approach, and a unit loss approach. We expect the first approach to be more effective because it builds on an established methodology used in affordable housing linkage fee nexus studies (affordable housing impact fees). The unit loss approach may be limited by the timeliness of available data. Nonetheless, we expect useful trend and condition information to result from the analysis in this Task and Task 2. i.Economic Impact and Housing Demand Analysis This analysis will build on the Aspen Residential Job Generation Update study underway separately. An economic impact model (IMPLAN, a widely used input-output model) will be used to estimate the jobs generated by STR guest spending.  Estimate workforce housing demand from STR visitor spending using the IMPLAN model and EPS’S housing demand model to convert jobs by NAICS category to jobs by occupation and corresponding household income.  Distinguish between the impacts of STRs and other lodging types and between local and second homes.  Determine the housing demand by price point and the associated housing gaps.  Determine a method for converting housing gap costs into an annual fee.  Consider other fee uses such as housing programs and adjust the nexus methodology as needed.  Develop a recommended regulatory fee for addressing the affordable housing impacts of STRs. ii.Impact of Housing Inventory Loss The analysis in Tasks 2 and 3 may allow us to develop mathematical relationships between STR use and year-round housing inventory loss, in other words, the degree to which housing costs increase as the supply for local’s housing decreases. There are differ ent approaches to the way DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 16 Agreement Professional Services Page 14 these relationships can be quantified in the data. Because price volatility and appreciation rates are subject to many factors (such as out-of-region equity investors), the relationships between supply and demand will need to be tested. We will explore the data to determine if another approach like this can be used to establish a nexus between STR use and affordable/workforce housing needs. iii.Impacts to City government The City of Aspen is likely to incur governmental/staff costs in conjunction with the regulation of STRs, e.g. with regards to life safety inspections, good neighbor enforcement, etc. The nexus analysis would also quantify the relationship between these costs and STRs, and develop a regulatory fee to offset the city’s costs. iv.Transportation impacts will not be addressed at this time Due to data limitations, we do not anticipate conducting a transportation nexus analysis at the present time. The transportation impacts of STRs (e.g. in terms of guest use of STRs and ST R servicing needs such as housekeeping) may require the addition of a transportation specialist to the team to estimate STR trip generation. Should this type of analysis be a priority to the City, we could explore options to address this as an addendum to this scope of work. f.Task 6: Draft and Final Reports EPS and RRC will prepare a draft report to document the information collected, methodology, analysis, and process used to develop the supportable STR fees. Following review and comment from Town staff, EPS will revise the document accordingly and be prepared to present and/or discuss the findings at a scheduled meeting. g.Task 7: Town Process and Meetings (Time plus direct cost) EPS can present findings or progress updates to any Town commissions or elected or appointed bodies. In addition to progress and project management meetings with Staff , we have budgeted for two in-person public meetings in Aspen. Proposed timeline We understand that the highest priority is Task 5 – STR nexus fee study. Numeric results of the nexus fee study would be needed by mid-April in order for ordinances to be crafted ahead of the moratorium expiration in June. The full report on the nexus analysis could be completed later, but before June 8. The other tasks have less urgent timing, but ideally would also be completed by June 8. The below schedule provides a target schedule for the completion of the tasks. Table 1. Residential Employment Generation Schedule DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 17 Agreement Professional Services Page 15 Task March 16-31 April 1-15 April 16-30 May 1-15 May 16-31 Task 1 – Project initiation and data collection X Task 2 – Spatial and economic activity analysis X X X X X Task 3 – Housing market impacts X X X X X Task 4 – Existing survey and peer community research X X X X X Task 5 – STR fee nexus study X X X Task 6 – Draft and final reports X X X Task 7 – Town process and meetings X X X X The graphic to follow, excerpted from staff’s Proposed Action Plan discussed at the February 1 Council meeting, shows the anticipated timeline for the completion of the efforts. Figure 1. City of Aspen Proposed Action Plan Project Timeline (as of 2/1/2022) Estimated Costs and Billing Rates EPS and RRC agree to complete the scope of work on a time and materials basis not to exceed $77,000. The approximate allocation of budget by firm is as follows: Economic & Planning Systems $53,500 RRC Associates $23,500 Total Budget $77,000 DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 18 Agreement Professional Services Page 16 Hourly billing rates include the following:  Andrew Knudtsen, Managing Principal, EPS: approximately $240/hour  Brian Duffany, Principal, EPS: approximately $200/hour  Rachel Shindman, Vice President, EPS: approximately $160/hour  David Becher, Director of Research, RRC Associates: $150/hour  Other staff: $60 - $120/hour Conclusion Thank you for the opportunity to submit this proposal. We would be happy to discuss and adjust this proposal as needed if there are any modifications that wou ld best meet the City’s needs, and/or begin proceeding on the quantified work items above as outlined. We look forward to working with you. Sincerely, David Becher Andrew Knudtsen Director of Research, RRC Associates Managing Principal, EPS DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 19 Agreement Professional Services Page 17 DocuSign Envelope ID: 2FE8DB8C-DA63-48CB-BF5C-BCCECE0F5E57DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 20 ROUTING SLIP Revision 12/08/2021 Page 1 of 2 ROUTING SLIP Project Information Project Name Ordinances 26, 27 and 6 – Residential and Short tTerm Rental Moratorium Project Number 2022-097 Capital Project Number Project Manager Ben Anderson Department Community Development Department Estimated Cost $77,000 – Not to Exceed Budgeted Amount Account Codes Project Description Give clear description of the project, work to be done, or items purchased Economic and Planning Systems (EPS), with a sub-contractor RRC Associates will conduct an analysis of several aspects of Aspen’s short- term rental contex and will importantly and most immediately study the employee gernation impacts of STRs. The project is happening on a compressed timeline. Vendor Selection Process Describe how vendor was seleted The EPS/RRC team is uniquely positioned in the research and analysis industry to provide this service to the City. They have worked with several other peer communities in Colorado and the Mountain West on this kind of analysis – and additionally, due to previous work with Aspen, Pitkin County and other projects in the Roaring Fork Valley hold a very sound understanding of Aspen’s context. Contract Value Sole Source & State Bid Dept. Head Signature Procurement Officer Signature City Attorney Signature City Manager Signature Resolution: Meeting Date & Number (Required for Contracts $50,000 +) DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 3/25/2022 | 8:51:58 AM MDT 3/25/2022 | 9:04:11 AM MDT 3/25/2022 | 9:11:08 AM MDT 3/25/2022 | 11:42:14 AM PDT 21 ROUTING SLIP Revision 12/08/2021 Page 2 of 2 Contracts Up To $24,999 Dept. Head Signature City Attorney (Depending on Contract Template) Signature Contracts Over $25,000 to $49,999 Dept. Head Signature Procurement Officer Signature City Attorney Signature City Manager Signature On Contract Only Contracts over $50,000 & Up Dept. Head Signature Procurement Officer Signature City Attorney Signature City Manager On Contract Once Vendor Signs & Council Resolution Adopted Resolution Date & Number: Emergency Procurement In the case of an emergency which threatens the public health, welfare, or safety requiring the immediate purchase of a supply, service or construction, the City Manager shall have the power to authorize the Procurement Officer to secure the necessary items or service in the open market without competition regardless of the amount of expenditure. In no event, shall the contract price exceed commercially reasonable prices. Date March 17, 2022 Supplier Selected Econonomic and Planning Systems (EPS) Contract Amount $77,000 Emergency Conditions/Situation Ordinance #26, 27, Series of 2021 and 6 of Series of 2022 If over $50,000 Memo to Council Date Approval Requirements Dept. Head Signature Procurement Officer Signature City Attorney Signature City Manager Signature DocuSign Envelope ID: 34DB08A8-2C79-4AEC-B8E9-E9C242D53317 3/25/2022 | 11:42:14 AM PDT 22 INFORMATIONAL MEMORANDUM TO: Mayor Torre and Aspen City Council FROM: Perry Kleespies, Capital Asset, Sr. Project Manager THROUGH: Robert Schober, Capital Asset, Director MEMO DATE: April 6, 2022 RE: Wheeler Opera House Phase 2 Remobilization SUMMARY: This memorandum is to inform you construction crews will remobilize on April 11, 2022 to complete the Wheeler Opera House masonry repairs. This includes all outstanding items on the South elevation, along with all proposed work on the West elevation and alley side of the building. Scaffolding will be installed April 12-13, 2022 on the Hyman side of the building and around the front entrance to the restaurant, and approximately seven feet down Mill Street. The scaffolding is required to finish the stone replacement. As soon as the scaffolding is down, there will be brick repair and replacement on west and alley side of the building. A lift will be used to complete the brick work on these elevations. The existing parapet cap must be removed on the west side of the building to repair the upper course of brick. It was determined that the best strategy was to replace the existing parapet cap if it had to be removed. The railing that sits on top of the parapet cap on the roof will also be removed, repainted, and re-installed. While the railing is down, it will be extended past the roof hatch to the north to provide additional safety. All masonry repairs and scaffolding removal is scheduled to be complete by June 30th, 2022. 23