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HomeMy WebLinkAboutagenda.council.worksession.20150331 CITY COUNCIL WORK SESSION March 31, 2015 4:00 PM, City Council Chambers MEETING AGENDA I. Employee Generation Study II. Housing Cash-in-lieu Policy Discussion III. Transportation Mitigation Update Residential employment study – page 1 MEMORANDUM TO: Mayor Skadron and Aspen City Council FROM: Chris Bendon, Community Development Director RE: Work Session: Single-Family and Duplex Employee Generation Study DATE: March 31, 2015 BACKGROUND: The City requires the redevelopment (“scrape-and-replace”) of single-family and duplex properties to provide affordable housing mitigation. The requirement was established in 1990 and uses an employment generation factor of one employee per 3,000 square feet of residential floor area. Standard practice suggests impact fee studies be renewed every 5-10 years. This impact fee requirement has not been analyzed or updated since its inception, 25 years ago. Determining the employees generated from the construction and operation of residences is a highly technical exercise. The City contracted with RRC Associates of Boulder, Colorado. RRC specializes in these technical planning studies and is very familiar with Aspen and other mountain resorts. Employment needs for construction were derived from government and private sector data correlating valuation and labor reports. RRC also interviewed several local contractors in-depth regarding specific recent projects and their exact labor needs. Ongoing employment needs for homes were derived from a comprehensive survey sent to all residents and in-depth interviews with property managers regarding specific properties. RRC’s analysis suggests a home of 3,000 square feet of floor area generates .445 employees, accounting for both the initial construction and ongoing operations. (Please see chart on page 2). This is less than the 1990 standard of one employee. Using today’s cash-in-lieu figures, the affordable housing mitigation requirement for home construction is $79.97 per square foot of floor area. This is assessed at building permit and, like all other impact fees, is only assessed on net new floor area. Using the RRC study, this requirement becomes $35.59 per square foot of floor area. TONIGHT’S WORK SESSION: Tonight’s work session will include a brief overview of the report from RRC and will cover a series of policy questions for City Council. Direction on these policy questions will allow staff to proceed to next steps. RRC’s report has been on the City’s web site and staff has done public outreach to the general public and interested boards. Specifically, staff sought questions about the report for RRC to answer and policy topics for City Council to address. That feedback has been incorporated into tonight’s memo and presentation. Link to Report: http://www.aspenpitkin.com/Po rtals/0/docs/Residential%20E mployee%20Generation%20St udy%203-4-2015.pdf P1 I. Residential employment study – page 2 STUDY RESULTS: Estimated Employment Generation Associated with Free-Market Residential Units, by Unit Type Notes: • Operations and maintenance employment excludes “owner FTE labor,” i.e. labor contributed by the owner and household members to unit upkeep. • Results exclude employment associated with personal service employees who travel with the household. The results do not deduct for other types of employees (such as caretakers) who may be housed by the owner. • Operations and maintenance employment for single family/duplex units larger than 7,000 sqft may be assumed to grow by 0.128 employees for every 500 square feet in excess of 7,000 sqft. Operations and maintenance employment for condominium/townhome units larger than 3,500 sqft may be assumed to grow additional 0.041 employees for each 500 square foot increment in excess of 3,500 sqft. Construction employment is assumed to grow linearly beyond 7,000 sqft, at 0.110 employees per 1,000 sqft for single family/duplex units, and 0.096 employees per 1,000 sqft for condominiums/townhomes. POLICY QUESTIONS: Should the City continue to require affordable housing mitigation for single-family and duplex development? This first question is fundamental to the remaining questions. If the community no longer needs or wants to require mitigation for residential development, staff can proceed with code amendments and the remaining questions are irrelevant. Development in Aspen brings impacts and the community has imposed various requirements for those impacts to be mitigated or lessened. Affordable housing continues to be an important community issue. Staff recommends the City continue requiring mitigation for residential development. Continuing the mitigation requirement is consistent with the AACP and is in keeping with community expectations for all types of new development. This requirement was first adopted in 1990 and there is no support for abandoning this policy in the community plan or other documented city goals. Floor Single family/Condominium/Single family/Condominium/Single family/Condominium/ area duplex townhome duplex townhome duplex townhome 500 0.055 0.048 0.034 0.085 0.089 0.133 1,000 0.110 0.096 0.043 0.126 0.153 0.222 1,500 0.165 0.144 0.055 0.167 0.220 0.311 2,000 0.220 0.192 0.070 0.208 0.291 0.400 2,500 0.276 0.239 0.090 0.249 0.365 0.488 3,000 0.331 0.287 0.115 0.290 0.445 0.577 3,500 0.386 0.335 0.146 0.331 0.532 0.666 4,000 0.441 0.383 0.187 n/a 0.628 n/a 4,500 0.496 0.431 0.239 n/a 0.735 n/a 5,000 0.551 0.479 0.306 n/a 0.857 n/a 5,500 0.606 0.527 0.391 n/a 0.997 n/a 6,000 0.661 0.575 0.499 n/a 1.161 n/a 6,500 0.716 0.623 0.638 n/a 1.355 n/a 7,000 0.772 0.671 0.816 n/a 1.588 n/a OPERATIONS & MAINTENANCE EMPLOYMENT TOTAL EMPLOYMENT INITIAL CONSTRUCTION EMPLOYMENT P2 I. Residential employment study – page 3 Is the RRC report sufficient? Staff is satisfied with the work product, but suggests one additional area of study – remodeling activity. The study (as was requested) addresses initial construction and ongoing operations. Within the estimated 40-year life of a structure, several remodels should be expected which also incur certain employee demands. Staff suggests the study be broadened to include remodel activity. Outreach reflected this same desire. The Housing Board in particular noted their concern that remodel activity is not addressed in the study. The information needed for this analysis is readily available and can be accomplished quickly. Additional costs can be covered with department savings. Should mitigation requirements include both construction and operations? Affordable housing mitigation requirements for commercial uses are based on the number of employees generated by the end uses. Mitigation requirements for commercial properties downtown, for example, are based on the number of employees necessary to operate a blend of retail shops, restaurants, galleries, etc. Commercial mitigation does not account for the employees necessary to build a commercial building. The RRC study details residential employment generation from both construction and operations, with the majority of impact coming from construction. Staff recommends the mitigation requirements be based on the sum total of construction and operations. This is a more accurate representation of actual community impacts and an approach supported by the AACP. The community plan calls for a complete accounting of impacts as a basis for informed policy making. Should the requirement affect all residential expansions? The current requirements only apply when an old home is “demolished” and the new home is larger. Often this forces contractors to manage precise construction parameters to avoid technically demolishing the structure and requires staff to monitor these projects more closely. Staff believes managing demolition incorrectly focuses on the process of construction as opposed to the impacts of the end product on the community. All other impact fees apply to any increase in size, regardless of whether the building was demolished or simply made larger. Staff suggests the same approach of focusing on the end product be applied to housing mitigation. Staff also believes the residential impact fee should apply to townhome and condo expansions. From a community impact standpoint, these types of residences are no different than single- family/duplex and should be treated equally. Should the City provide a “credit” for RETT taxes? City Council asked staff to research the accumulated RETT payments made by a typical home as part of this study. The Real Estate Transfer Tax assesses a tax of 1% on property transaction values above $100,000. The funds are designated for the construction of affordable housing. P3 I. Residential employment study – page 4 Andrew Ernemann, the City’s real estate broker, determined that residential properties pay approximately $26.26 per square foot of floor area over the life of the structure. The same set of assumptions for structure life span and floor area ratios used in the RRC study were used in this analysis. The full report is attached. Lowering the impact fee commensurate with the value of historic RETT payments would reduce the fee to $9.33 per square foot of floor area. Staff suggests the impact fee not be lowered based on presence of this tax. Taxes are voter adopted to address specific community issues while impact fees are used to insure the community is not financially burdened by additional development. Providing an impact fee “credit” to compensate for the historic value of this tax effectively waives a voter-approved tax. Staff suggests that the question of waiving this tax for residential properties is a question that should be asked of the voters, not City Council. (Also see next question). Should the City assess the full impact fee? If the impact fee is considered disproportionate, the City has the ability to assess less than the full amount, shifting some or all the burden to the general public. Communities often assess less than the full impact fee for political acceptance reasons or to promote or incentivize certain types of development. The School District, for example, collects 1/3 of their possible fee for new development. It is important to remember that the remainder of the burden then falls to the general public. Staff suggests the question be stated as: what portion of the impact should be paid by developer and what portion should be paid by the general public, and why? Free-market residential construction has not been identified as needing incentives or subsidy. In this context, staff suggests that none of the affordable housing impacts of residential construction be borne by the public. Should the City provide an exemption or waiver for “small” projects? Previous discussions on this topic included this policy question of whether this fee should only apply to houses over a minimum size. For example, exempting the first 1,000 square feet and assessing the fee from 1,001 and above. Staff does not consider this to be necessary. The context of this idea envisioned a fee twice or triple today’s rate and the need to lessen its effects for political acceptance reasons. There is no similar exemption today and staff does believe one is necessary. Should the City continue to allow payment deferral as an option for local working residents? The current policy allows homeowners who are local working residents to defer payment of this affordable housing impact fee until the property is transferred to a non-working owner. Deferral agreements are recorded against the property and are typically addressed upon sale. This policy acknowledges that current working residents essentially mitigate their own housing impacts. Staff believes this policy has worked well and does not recommend altering the policy moving forward. P4 I. Residential employment study – page 5 Should Accessory Dwelling Units continue as a mitigation option? Mitigation options for residential projects currently include providing an off-site affordable unit, payment of a cash-in- lieu fee, providing an affordable housing certificate, or building an ADU on the property. An ADU is an accessory dwelling unit that must be separate from the main house and may only be rented to a local worker. Occupancy of these units has been much lower than desired by many. The most-recent study estimates ADU occupancy at 39%. The “ADU option” has been criticized for not providing enough actual benefit to the community’s housing dilemma. The AACP, and other ongoing community discussions have suggested elimination of this mitigation option. Staff recommends the ADU option be eliminated as a mitigation choice. This is consistent with policy discussions to date. Eliminating the ADU option will leave cash-in-lieu and housing certificates as the two likely choices for developers. Should there be a voluntary process to eliminate existing ADUs? There is no process currently for a homeowner wanting to retire an ADU and eliminate the deed restriction on their property. The deed restriction is often a discussion point during property transactions and it appears there would be interest in a program to “unwind” existing ADUs and relive a property of the deed restriction. This has been reinforced by local real estate agents who often witness the effects of the deed restriction being “discovered” by a purchaser during due diligence. Staff recommends property owners be allowed to eliminate ADUs if they so choose. Staff also suggests some replacement mitigation be provided for those ADUs originally developed to meet the City’s requirements. Should cash-in-lieu continue as a mitigation option? Mitigation options for residential projects currently include providing an off-site affordable unit, payment of a cash-in-lieu fee, providing an affordable housing certificate, or building an ADU on the property. The Affordable Housing Certificate program didn’t exist until recently but is now a viable mitigation option preferred by APCHA. Previously, cash-in-lieu represented the only reasonable option for certain types of projects. Small expansions, for example, where the impact is very minor are enabled to mitigate commensurate with their impact via the cash-in-lieu option. The significant downside to the cash-in-lieu option is the shift of responsibility from the private sector to the public. Writing a check is much simpler than finding a property, negotiating the development review process, and producing the affordable housing. There can also be a significant delay between the impact and provision of the affordable housing mitigation. These downsides do not exist with the AH Certificate program. P5 I. Residential employment study – page 6 As the AH certificates program matures, the cash-in-lieu option will become less necessary. Staff suggests the certificates program could replace the cash-in-lieu option altogether. The question is when. Currently, there is one primary developer utilizing the credits program. Staff would be more comfortable recommending elimination of the cash-in-lieu option if more developers held credits. Staff suggests this may soon come, but the cash-in-lieu option should remain for the time being. NEXT STEPS: Based on tonight’s feedback staff would like to move forward into code amendments. There has been widespread support for eliminating the ADU option and significant amount of time invested into this project. The report is comprehensive and a solid basis for a revised fee structure. If additional work regarding remodels is desired, this work can be accomplished and discussed during the adoption process. Staff also suggests that the prospect of significantly lower mitigation fees will create a bottleneck as building permit applicants wait for new fees to take effect. Through recent outreach, staff has already heard that some applicants are delaying their project. Placing applicants in a pay more now or delay your project position may become burdensome if adoption of this new standard is significantly delayed. Assuming City Council is comfortable moving into code amendments, the next step would be consideration of a policy resolution during a public hearing. This would provide staff with official direction to draft a code amendment and could be scheduled as soon as April 27th. First and second readings of an ordinance would follow. EXHIBITS: A – RRC Residential Employment Generation Study, March 4, 2015. Attached by reference - http://www.aspenpitkin.com/Portals/0/docs/Residential%20Employee%20Generation%20Study%203-4-2015.pdf B – Ernemann RETT Analysis, March 24, 2015. P6 I. RRC Associates Contents Prepared for: City of Aspen Prepared by: RRC Associates 4770 Baseline Rd, Suite 360 Boulder, CO 80303 303/449-6558 www.rrcassociates.com Aspen Residential Employment Generation Study March 4, 2015 P7 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates Contents TABLE OF CONTENTS Introduction and Background .................................................... 1 Methodology ................................................................................ 2 Summary of Residential Employment Generation ................... 3 Employment Associated with Construction of Floor Area ..... 5 Estimates of Construction Employment ........................................................................... 5 Average Construction Value per Square Foot – Single Family Units ................................ 6 Average Construction Value per Square Foot – Duplexes and Condos/Townhomes ...... 7 Construction Employment Derived from Employment:Valuation Ratios ........................ 7 Construction Employment Derived from Employment:Labor Income Ratios ................. 9 Final Estimates of Construction Employment ................................................................ 10 Interviews with Building Contractors ............................................................................ 10 Residential Operations and Maintenance Employment ........ 11 Utilization of Service Providers for Home Operations and Maintenance ........................ 11 Conversion of Expenditures on Home Services to Jobs ................................................... 17 Relationship between Employment and Floor Area: by Unit Type ................................. 19 Relationship between Employment and Home Size: by Unit Type and Occupancy ......... 24 Total Labor Associated with Home Operations/Upkeep (Including Owner Labor)........... 26 Aspen Property Management Company Survey ............................................................. 28 Employment Relationships Based on Multi-Community Data (Heated Square Feet) ....... 29 Total Residential Employment Generation ............................. 33 Appendix A: Homeowner Survey Results – by Unit Type .... 35 Respondent Housing Characteristics ............................................................................. 35 Unit Usage Characteristics ............................................................................................ 46 Respondent Household/Demographic Characteristics ................................................... 48 Intended Future Use of Unit .......................................................................................... 53 Characteristics of and Expenditures on Home Operations and Upkeep .......................... 55 Appendix B: Homeowner Survey Results – by Occupancy . 64 Respondent Housing Characteristics ............................................................................. 64 Unit Usage Characteristics ............................................................................................ 76 Respondent Household/Demographic Characteristics ................................................... 78 Intended Future Use of Unit .......................................................................................... 83 Characteristics of and Expenditures on Home Operations and Upkeep .......................... 85 P8 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 1 Introduction and Background This report summarizes findings regarding the employee generation associated with free-market single- family/duplex and condominium/townhome floor area in Aspen. By way of background, the Aspen Land Use Code requires the provision of affordable housing for the development of free-market single family and duplex units (26.470.060). One of the options for fulfilling the affordable housing requirement is paying an affordable housing impact fee pursuant to the APCHA Housing Guidelines (Guidelines Part VII, Section 12, 3 – Payment in Lieu Fee). Per the Guidelines, the payment in lieu formula “…assumes that for every 3,000 square feet of new single-family or duplex floor area, the public will be required to provide housing for one moderate income employee…”. This requirement (of one employee per 3,000 square feet of floor area) was established per City of Aspen Ordinance 1 (Series of 1990). The primary purpose of this study is to update this aspect of the payment- in-lieu formula for free-market single-family and duplex units, based on an empirical analysis. Additionally, this study extends the employee generation analysis to free-market condominiums and townhomes as well, insofar as those units are also subject to an affordable housing payment-in-lieu structure. This study evaluates two types of residential employment impacts for each of these categories of housing units: 1. Employment impacts associated with the construction of new floor area; and 2. Employment impacts associated with the ongoing operation and maintenance of the home (and particularly services delivered to/provided at the home). Based on conversations with staff and Aspen City Council on April 22, 2014, it was determined that a third category of employment impacts, i.e. as associated with associated with public safety services delivered at residences (i.e. police and fire), would not be examined, primarily since public funding for those services is provided via a variety of other means. Note that other types of employment impacts associated with residential units, such as construction- supporting architecture and engineering services, services related to purchasing and financing the home, and employment stemming from occupant purchases of retail goods and services at commercial establishments, are excluded from the residential employment calculation, since those employment impacts (and associated housing mitigation requirements) are assigned to the development of commercial floor area in Aspen. Additionally, construction employment associated with residential alterations and remodels which don’t add floor area is also excluded from this analysis. Both of the categories of residential employment outlined above (construction and operations) have been evaluated through their own methodologies and data sources, as described in the following Methodology section. The two categories are then summed to derive total residential employment generation. In addition to providing Aspen-specific data, this report also provides comparative community data as a point of reference, to the extent identified and available. P9 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 2 Methodology As noted previously, this study evaluates two types of residential employment, which are then summed to estimate total employment: 1. Employment associated with the construction of new floor area; and 2. Employment associated with the ongoing operation and maintenance of the home (and particularly services delivered to/provided at the home). The study focuses particularly closely on the relationship between employment generation and residential floor area. For purposes of this study, “floor area” is defined pursuant to section 26.575.020.D of the Aspen Land Use Regulations (“Measuring Floor Area”). As described in the regulations, “floor area” is generally defined as above-grade interior space, plus basement space proportionate to the share of basement wall area which is above grade. Additionally, floor area also encompasses space above certain size thresholds for certain structural elements in some circumstances (garage, porch, deck, etc.), and also encompasses other adjustments. The terms “floor area” and “square footage” are used interchangeably in this report unless noted otherwise. Following is a brief overview of the methodology used to evaluate each category of employment. Additional methodological details are contained in the respective sections of the report. 1. Calculation of employment associated with construction of floor area Two complementary efforts were undertaken to estimate employment generation associated with construction of floor area, as outlined below. a. Derivation of employment generation from data on local construction economics. This methodology involved the use of a variety of data on the economics of construction in Aspen and the Roaring Fork Valley, including construction volume and valuation, employment, labor income, and materials costs. The analysis attempted to account for complexities of the Aspen market, where many construction firms doing business in Aspen are located downvalley, and many construction workers are sole proprietors rather than working for employers (and are thus excluded from employer statistical series). A variety of governmental and private sector data sources were used to derive factors used in the analysis, such as construction valuation:employment ratios and labor income:employment ratios. Details are described in the associated section of the report. b. Interviews with contractors regarding employment patterns. RRC conducted interviews with a sample of Aspen contractors in order to gain a better understanding of the factors impacting local residential construction employment needs, as well as to examine employment requirements for a sample of homes built in Aspen. The data is primarily intended as a complement and reasonableness cross-check of the results gained through the analysis of secondary data described above. 2. Calculation of the employment associated with the operation and maintenance of homes P10 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 3 For purposes of estimating the employment associated with operating and maintaining homes in Aspen, RRC undertook two efforts, as follows: a. Aspen homeowner employment generation survey. RRC conducted a mailback survey of owners of free-market single-family, duplex, condominium and townhome units located in Aspen. The survey questionnaire collected a variety of information regarding the physical characteristics of the home, homeowner demographics, unit occupancy patterns, and the use of (and expenditures on) various service providers (homeowners associations, property managers, etc. – including the homeowner’s own time spent maintaining the home). The survey form was introduced by a letter outlining the purpose of the study that was signed by Chris Bendon, Director of the Aspen Community Development Department. The survey was fielded in late August/early September 2014. A total of 3,465 non-duplicated owners of free-market homes in Aspen, as identified through Pitkin County Assessor records, were mailed a survey, of which 56 were returned as undeliverable. A total of 849 usable survey responses were received, for a strong net response rate of 24.9 percent. Given the breadth of information collected on the survey, the results may be of interest for other policy, planning and research purposes in addition to employment generation. b. Property management company interviews/surveys. As a complement to the household survey, interviews and/or surveys were conducted with a sample of property management firms in Aspen. The research sought to better understand the employment dynamics of property management firms generally and for a sample of illustrative “case study” homes. The data has been used in this analysis as a “reasonableness check” on the homeowner survey results, as well as an additional source of insight on the employment generation associated with the provision of property management services to homes. Summary of Residential Employment Generation Total employment associated with free-market residential units had been calculated as the sum of construction employment associated with new floor area and operations and maintenance employment. The results using factors specific to Aspen are summarized in Table 1 to follow, for 500 square foot increments of floor area. As shown, total employment generation for a single family/duplex unit with 3,000 square feet of floor area is estimated to be an average of 0.445 workers. Looking at each category of employment generation separately:  Construction employment is estimated to increase with floor area at a linear rate of approximately 0.110 employees per 1,000 square feet for single family/duplex units and 0.096 employees per 1,000 square feet for condominiums/townhomes.  Operations and maintenance employment is estimated to grow with floor area at an exponential rate for single family/duplex units, and at a linear rate for condominium/townhome units.  As the sum of construction and operations/maintenance employment, total employment is estimated to grow quasi-exponentially for single family/duplex units, and linearly for condominium/townhome units. P11 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 4 Table 1 Estimated Employment Generation Associated with Free-Market Residential Units, by Unit Type Notes:  Operations and maintenance employment excludes “owner FTE labor,” i.e. labor contributed by the owner and household members to unit upkeep.  Results exclude employment associated with personal service employees who travel with the household. The results do not deduct for other types of employees (such as caretakers) who may be housed by the owner.  Operations and maintenance employment for single family/duplex units larger than 7,000 sqft may be assumed to grow by 0.128 employees for every 500 square feet in excess of 7,000 sqft. Operations and maintenance employment for condominium/townhome units larger than 3,500 sqft may be assumed to grow additional 0.041 employees for each 500 square foot increment in excess of 3,500 sqft. Construction employment is assumed to grow linearly beyond 7,000 sqft, at 0.110 employees per 1,000 sqft for single family/duplex units, and 0.096 employees per 1,000 sqft for condominiums/townhomes. The body of the report also includes estimates of operations and maintenance employment by unit type by occupant type (owner-occupied 40+ weeks/year vs. other occupancy types). The analysis found that for single family/duplex units, employment generation appears to be relatively similar for owner and non-owner-occupants across the home size spectrum evaluated (up to 5,500 sqft). For condominium/townhome units, non-owner-occupied units tend to generate somewhat more employment than owner-occupied units across the size spectrum evaluated (up to 2,500 sqft). While the preceding discussion has focused on the relationship between paid employment and unit size/type/occupancy characteristics, it is important to note that many homeowners spend a considerable amount of their own time on home operations and maintenance tasks. Based on results from the Aspen homeowner survey, it was found that owner-occupants tend to supply more labor for maintaining their home than non-owner-occupants in both absolute and relative terms. In particular, for single-family/duplex units, owner-occupants are estimated to supply an average of 49 percent of the total labor required to maintain the home, while non-owner-occupants supply an average 11 percent of Floor Single family/Condominium/Single family/Condominium/Single family/Condominium/ area duplex townhome duplex townhome duplex townhome 500 0.055 0.048 0.034 0.085 0.089 0.133 1,000 0.110 0.096 0.043 0.126 0.153 0.222 1,500 0.165 0.144 0.055 0.167 0.220 0.311 2,000 0.220 0.192 0.070 0.208 0.291 0.400 2,500 0.276 0.239 0.090 0.249 0.365 0.488 3,000 0.331 0.287 0.115 0.290 0.445 0.577 3,500 0.386 0.335 0.146 0.331 0.532 0.666 4,000 0.441 0.383 0.187 n/a 0.628 n/a 4,500 0.496 0.431 0.239 n/a 0.735 n/a 5,000 0.551 0.479 0.306 n/a 0.857 n/a 5,500 0.606 0.527 0.391 n/a 0.997 n/a 6,000 0.661 0.575 0.499 n/a 1.161 n/a 6,500 0.716 0.623 0.638 n/a 1.355 n/a 7,000 0.772 0.671 0.816 n/a 1.588 n/a OPERATIONS & MAINTENANCE EMPLOYMENT TOTAL EMPLOYMENT INITIAL CONSTRUCTION EMPLOYMENT P12 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 5 the labor needed for their units. Similarly, for condominiums/townhomes, owner-occupants are estimated to supply an average of 35 percent of the total labor required to maintain the home, while non-owner-occupants supply an average of 10 percent of the labor needed for their units. The body of the report also includes estimates of the operations and maintenance employment observed in a cross-section of mountain resort communities. The analysis suggests that operations and maintenance employment in Aspen is similar to the multi-community average for single family/duplex homes (up to approximately 6,000 sqft, after which Aspen homes appear to generate somewhat more employment). For condominiums/townhomes, Aspen operations and maintenance employment generation appears to be somewhat higher than the multi-community average, particular as units get larger. Insofar as the multi-community database has a larger sample size, including for very large units, it can be considered as an additional possible resource by the City when developing employment generation mitigation policies and formulas. In addition to the bottom-line conclusions summarized here, the data collected as part of this study, and particularly the homeowner survey results, provide additional insights that may be useful for a variety of informational and policy purposes as related to the free-market housing stock and potentially other topics. As such, the survey results, summarized in Appendices A and B, should be viewed as an informational resource for other possible uses as well, as the underlying survey results can also be segmented and analyzed in a variety of other ways. Employment Associated with Construction of Floor Area The objective of this element of the analysis is to estimate the average number of construction “employee-years” and “permanent construction employees” required to build 1,000 square foot of new free-market residential floor area in Aspen, with floor area defined consistent with section 26.575.020.D of the Aspen Land Use Regulations. Included in the calculations are employees classified as being in the construction industry, including general contractors and specialty trades contractors. Excluded are employees classified as being in allied industries, such as architectural and engineering services, building materials wholesalers and retailers, utility providers, etc. (insofar as the associated employment impacts and housing mitigation requirements of those activities are assigned to the development of commercial floor area in Aspen.) Construction employment was primarily estimated via an analysis of a variety of secondary data on pertaining to construction economics. Additionally, for additional perspective and as a reasonableness check, construction employment was also evaluated on a case-study basis for a sample of single family units via interviews with contractors in Aspen. Estimates of Construction Employment Two primary approaches were used to estimate construction employment: 1) employment based on employment:construction valuation ratios, and 2) employment based on employment:labor income ratios. The results of the two approaches were then averaged to develop final employment estimates for the respective unit types. P13 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 6 Average Construction Value per Square Foot – Single Family Units Both construction estimation techniques listed above first required the estimation of average construction valuation per square foot of floor area in Aspen. For purposes of single-family homes, four sources were consulted, with the Pitkin County Assessor data ultimately chosen as the most complete and reliable source, while the other three sources serve to provide reasonableness checks. 1. Pitkin County Assessor data: The Pitkin County Assessor database contains data on various categories of residential spatial area (e.g. basements, above-grade area, etc.), as well as the value of improvements. From this data, RRC derived a close equivalent to floor area defined by section 26.575.020.D of the Aspen Land Use Regulations.1 Based on these measures for a sample of 104 single family units constructed in 2006-13 with no accessory buildings, the average improvement value per square foot of floor area is $802 / sqft. 2 (The median improvement value across the units evaluated was $883/sqft.) 2. City of Aspen impact fee data: The Aspen Community Development Department maintains detailed data on projects that are required to pay impact fees as a result of adding floor area. Based on a sample of 26 new residential projects built in 2012-14 for which valuation and new floor area is available and construction valuation is at least $175/sqft (the minimum value threshold observed in the Assessor data), the average construction value per square foot of floor area from this source is $705 / sqft. 3. Construction valuation per Dodge Data and Analytics: This national firm estimates that a total of 881,500 square feet of space (i.e. square footage “under the roof,” but excluding basements) was built in new one-family houses in Pitkin County over the 2006-2014 period, at a total construction value of $477 million, for an average of $571 in construction value per square foot. The average value per square foot varied by year from $441/sqft to $691/sqft ($476/sqft in 2014). While of interest, this data should be interpreted with caution insofar as garages are presumably “under the roof,” making this an imperfect measure of construction value per square foot of floor area as defined by Aspen land use regulations. Additionally, the data reflects all of Pitkin County, rather than Aspen only. 4. Aspen Building Division guidance: For additional perspective, a “Memorandum of Policy” dated 11/19/07 by Stephen Kanipe, Aspen Chief Building Official, provides the following figures as “reasonable” estimates “to begin determining permit valuation”: deed restricted - $250/sqft; good: $400 - $600/sqft; luxury: $600 - $1,000/sqft. Insofar as it has the largest sample size, while also roughly aligning in logical ways with other local data sources, the Pitkin County Assessor data is felt to provide a reasonable representation of average construction value for new single-family units in Aspen, at $802 per square foot of floor area. 1 Specifically, RRC calculated floor area as equivalent to above-grade heated area (excluding heated garages), plus an assumed 25 percent of garden-level basement area, plus pro-rated garage area above the size thresholds identified in 26.575.020.D. No adjustments were made for decks, porches, balconies, sheds, storage areas, and other categories of space which can in some instances be counted as floor area, due to data limitations and the assumption that such adjustments would likely be minor. 2 Of note, the average improvement value per square foot of heated area (excluding heated garages and unfinished basements) is a much smaller $480. This reflects the fact that the ratio of estimated floor area to heated area for the subject properties is 0.60. P14 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 7 Average Construction Value per Square Foot – Duplexes and Condominiums/Townhomes Based on a review of Assessor data, duplexes (i.e. duplex condominiums, as classified by the Assessor) are assumed to have the same improvement valuation per square foot as single family residences, i.e. $802 / sqft. Duplex condominiums built in Aspen over the 2006-13 period have a ratio of floor area to heated area (excluding heated garages and unfinished basements) of 0.59, similar to the ratio for single family units (0.60). Additionally, duplex condominiums built over the 2006-13 period have an average total valuation (land plus improvement) per square foot of floor area ($1,537) which is similar to that observed for single-family residences ($1,568).6 These design and valuation similarities suggest that construction valuations, on a per unit of floor area basis, are likely to be similar for new duplex condos and new single-family homes. Condominiums/townhomes (other than duplex condominiums) are assumed for purposes of this report to have a construction valuation per square foot of floor area which is approximately 13 percent less than that for single family/duplex units, or $697 / sqft. This is based on Assessor data showing that for Aspen units built in the 2006-13 period, average total (land plus improvement) valuation per square foot of floor area is 13 percent lower for condominiums/townhomes ($1,352) than for single family/duplex units ($1,561). For additional perspective, Dodge Analytics data also indicates that for Pitkin County units built over the 2006-14 period, attached units have a lower average valuation per square foot than single family units (specifically 37 percent lower, at $305/sqft vs. $480/sqft), although the Dodge figures would be expected include deed-restricted affordable units as well as Pitkin County units outside of Aspen, and thus may not be representative of free-market condominium/townhome units in Aspen. Also of note, Assessor data indicate that condominiums/townhomes built recently tend to have less basement space than single family/duplex homes, which (all else held equal) would tend reduce their construction cost when evaluated per unit of floor area (recall that floor area calculations exclude basement square footage in proportion to the share of basement wall area below grade). Conversely, condominiums/townhomes in some cases have common circulation areas, structured parking, and common amenities (partially or entirely excluded from floor area) which may increase their relative construction costs on per unit of floor area. Construction Employment Derived from Employment:Valuation Ratios As noted previously, one method used to derive construction employment was via the use of construction employment:valuation ratios, as shown in Table 2 to follow. As shown, the analysis involves dividing the average construction valuations per 1,000 sqft (i.e. $802,000 for single family/duplex units and $697,000 for condominiums/townhomes, as derived previously) by the average construction value per employee (estimated at $207,124 for residential construction in Pitkin County; assumed to be the same for both single family/duplex units and condominium/townhome units). For single family/duplex units, this results in an estimated 3.872 construction employee years required to construct 1,000 square feet of floor area. Assuming an average construction employee career length of 40 years, this results in an estimate of 0.097 permanent construction employees per 1,000 square feet built. For condominium/townhome units, the figures are about 13 percent lower, at 3.365 employee- years per 1,000 square feet, and 0.084 permanent construction employees per 1,000 square feet. 6 The Assessor does not report estimated improvement valuation for duplex condos or other types of condominiums, but rather just total valuation. P15 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 8 Two of the factors involved in this calculation warrant additional explanation. The estimate of average construction valuation per construction worker is derived from economic modeling data produced by IMPLAN, an economic modeling system sold by the Minnesota IMPLAN Group. The valuation estimate reflects a one third/two-thirds blend of ratios for Pitkin County and the State of Colorado respectively. The State of Colorado was chosen as a proxy for construction establishments based in Eagle and Garfield Counties but doing work in Pitkin County, insofar as average wage rates for construction workers in Garfield County and Colorado are similar. The 33 percent/67 percent Pitkin/Colorado weighting was chosen to approximate the location of construction establishments doing business in Pitkin County (with most construction employment in Pitkin County estimated to be attributable to downvalley firms). This is based on a finding that in 2006-10, among construction/agriculture/mining employees working in Pitkin County and living in the Roaring Fork Valley, 32 percent lived in Pitkin County and 68 percent lived in Eagle and Garfield counties.8 Regarding employee career length, it is common to assume 35 or 40 years. Pitkin County currently assumes 40 years for purposes of its housing impact fee calculations, so 40 years is used here for consistency. Table 2 Derivation of Construction Employment from Employment:Valuation Ratios OPERATION SINGLE FAMILY/ DUPLEX CONDO/ TOWNHOME DESCRIPTION AND SOURCE $802,000 $697,000 Construction valuation per 1,000 sqft. (Source: RRC estimates, per previous section) $247,587 $247,587 Construction valuation per employee-year: persons employed at construction establishments based in Pitkin County. (Source: Pitkin County IMPLAN 2012, inflation-adjusted to 2014, for IMPLAN sector 37 - new residential permanent site single- and multi-family structures.) $186,892 $186,892 Construction valuation per employee-year: persons employed at construction establishments firms based in Colorado (as a proxy for Roaring Fork Valley construction firms based in Eagle and Garfield counties). (Source: Colorado IMPLAN 2012, inflation-adjusted to 2014, for IMPLAN sector 37 - new residential permanent site single- and multi-family structures.) / $207,124 $207,124 Blend: Average construction valuation per construction job, 33%/67% Pitkin/Colorado weighting. = 3.872 3.365 Average construction worker-years per 1,000 sqft of new residential construction /40 = 0.097 0.084 Permanent construction workers per 1,000 sqft (assuming 40 year career) 8 Census Transportation Planning Products 2006-10 (place of work by place of residence); RRC Associates. Also supporting an estimate of significant Aspen construction work done by downvalley firms are data indicating that Pitkin County accounted for 60 percent of the combined valuation of Pitkin County/Garfield County new residential and nonresidential building construction over the 2006-14 period (per Dodge Analytics), but Pitkin County construction establishments accounted for just 23 percent of employees in the two counties in the building construction and specialty trade contractor sectors over the 2006 -13 period (per Colorado State Demographer). P16 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 9 Construction Employment Derived from Employment:Labor Income Ratios The second primary method utilized to derive construction employment was via the use of employment:labor income ratios, as shown in Table 3 and described to follow. The analysis first involved determining the share of construction valuation attributable to labor; this was inferred from City of Aspen use tax audit data, which (based on data from 48 reviewed residential projects) suggests that materials account for an average of approximately 44 percent of project valuation (with the remaining 56 percent attributable to labor), with roughly similar ratios observed for single-family and multi-family units. Thus, it was inferred that construction labor costs per 1,000 square feet of floor area averages $449,120 for single family/duplex units and $390,320 for condominium/townhome units. These labor values were then divided by average labor income per employee, estimated to be $90,812 for residential construction in Pitkin County (again based on a blend of factors for establishments located in Pitkin County and in Colorado-as a proxy for downvalley firms). This results in 4.946 construction employee years per 1,000 square feet of single family/duplex floor area, and 4.298 employee years per 1,000 square feet of condominium/townhome floor area. Assuming an average construction employee career length of 40 years, this results in an estimate of 0.124 permanent construction employees per 1,000 sqft of single family/duplex floor area, and 0.107 employees per 1,000 sqft of condominium/townhome floor area. Table 3 Derivation of Construction Employment from Employment:Labor Income Ratios OPERATION SINGLE FAMILY/ DUPLEX CONDO/ TOWNHOME DESCRIPTION AND SOURCE $802,000 $697,000 Construction valuation per 1,000 sqft. (Source: RRC estimates, per above) 44% 44% Percent of construction value attributable to materials. (Source: City of Aspen use tax audit data for 48 projects involving new single-family or multi-family floor area; RRC Associates.) $352,880 $306,680 Average materials value per 1,000 sqft (derived) x 56% 56% Percent of construction value attributable to labor (inferred). = $449,120 $390,320 Average labor value per 1,000 sqft (derived) $131,904 $131,904 Average labor income per employee, including employee compensation and proprietor income, for persons employed at construction establishments based in Pitkin County. (Source: Pitkin County IMPLAN 2012, inflation-adjusted to 2014, for IMPLAN sector 37 - new residential permanent site single- and multi-family structures.) $70,266 $70,266 Average labor income per employee, including employee compensation and proprietor income, for persons employed at construction establishments based in Colorado (as a proxy for Roaring Fork Valley construction firms based in Eagle and Garfield counties). (Source: Pitkin County IMPLAN 2012, inflation-adjusted to 2014, for IMPLAN sector 37 - new residential permanent site single- and multi-family structures.) / $90,812 $90,812 Blend: average labor income per employee, 33%/67% Pitkin/Colorado weighting. = 4.946 4.298 Average construction worker-years per 1,000 sqft of new residential construction /40 = 0.124 0.107 Permanent construction workers per 1,000 sqft (assuming 40 year career) P17 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 10 Final Estimates of Construction Employment Final estimates of construction employment were derived by taking an average of the two methods outlined previously. As illustrated in Table 4 to follow, for single family/duplex units, this results in an estimate of approximately 4.409 construction worker-years per 1,000 square feet of floor area, or approximately 0.110 permanent construction workers per 1,000 square feet (assuming a 40 year career). For condominiums/townhomes, the corresponding figures are 3.832 construction worker years and 0.096 permanent construction workers per 1,000 square feet of floor area. Employment demands are assumed to grow linearly, so that 2,000 square feet of floor area requires twice as many workers as 1,000 square, and so forth as unit size increases. Table 4 Final Estimates of Construction Employment SINGLE FAMILY/ DUPLEX CONDO/ TOWNHOME DESCRIPTION AND SOURCE 3.872 3.365 Construction worker-years per 1,000 sqft: method 1 (employment:valuation ratios) 4.946 4.298 Construction worker-years per 1,000 sqft: method 2 (employment:labor income ratios) 4.409 3.832 Construction worker-years per 1,000 sqft: Average of two methods 0.110 0.096 Permanent construction workers per 1,000 sqft (assuming 40 year career) Interviews with Building Contractors With outreach assistance from the Aspen Community Development Department, RRC conducted interviews with three residential general contractors active in Aspen.9 The contractors each provided information about a single-family unit they had recently constructed in Aspen. The contractors estimated employment associated with their project by estimating the average number of construction workers on site at a time throughout the duration of the project, and/or through job logs documenting workers on site each day of construction. From this information, along with data on construction duration and floor area, RRC was able to estimate the number of “employee-years” required to construct 1,000 square feet of floor area. Altogether, the three projects are estimated to have required an average of 4.6 employee-years per 1,000 square feet of floor area. The three projects had an average of approximately 3,300 square feet of floor area, and an average construction valuation (labor plus materials) of approximately $880 / square foot of floor area. The projects varied considerably in their employment generation, likely in part reflecting differences in the complexity of the projects and on-site staffing levels. The average employment generation rate indicated by these contractors is similar to the estimate derived in the prior section (approximately 4.4 employees per 1,000 sqft for single family units), providing a degree of corroboration, although it should be recognized that a sample of three projects is limited. For additional perspective from other communities, Rees Consulting and RRC Associates conducted similar interviews and surveys with builders of residential units in four resort counties (Gunnison, San 9 A fourth contractor was contacted but did not respond to invitations to participate. P18 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 11 Miguel, and Summit, CO; and Teton, WY) in 2000, as part of a multi-county residential employment generation study. Again, contractors were asked to estimate the average number of workers onsite throughout the duration of the project. Altogether, across 33 projects (including custom single-family, single family projects with multiple similar units built by a single contractor, and multifamily projects), there were an estimated 2.3 jobsite workers per year per 1,000 square feet of heated space. For custom single family home projects only, there were an average of 2.9 jobsite workers per year per 1,000 square feet of heated space (sample of 22 projects). Importantly, these figures are benchmarked to heated area, which is typically significantly larger than floor area defined pursuant to the Aspen Land Use regulations, if the employment generation rates derived in this research would be accordingly higher if it were possible to restate the figures in floor area terms. Notwithstanding this caution, as well as the fact that the data is dated and covers different geographic areas, the results (particularly allowing for upward adjustment to floor area terms) are “in the same ballpark” as the Aspen estimates. Residential Operations and Maintenance Employment This chapter summarizes findings regarding employment associated with home operations and maintenance. Utilization of Service Providers for Home Operations and Maintenance Following is a summary of findings pertaining to the types of service providers used by Aspen homeowners for home operations and maintenance, based on the 2014 Aspen Homeowner Survey. The analysis examines the use of employment-generating service providers (as well as owners’ own labor) by unit type, occupancy, and floor area. Results are for free-market units only. Subsequent analysis quantifies employment demand associated with use of these service providers.11  Utilization of service providers by unit type: As shown in Figure 1 to follow, most single family home/duplex households hire contractors/employees/specialty services (87 percent) and/or perform household operations/maintenance tasks themselves (78 percent). Much smaller shares hire a property management company (27 percent), belong to a homeowners association (21 percent), or hire an on-site caretaker (8 percent). In addition, 27 percent obtain other services locally, such as chef/kitchen help/catering (18 percent), pet sitter (7 percent), and child care provider/nanny (6 percent). Condominium and townhome owners primarily take care of home maintenance via a homeowners association (98 percent), as well as doing the work themselves (64 percent). Progressively smaller shares hire a property management company (57 percent), contractors/employees/specialty services (55 percent), and/or an on-site caretaker (11 percent). Additionally, 15 percent obtain other services locally, such as a pet sitter (5 percent) and miscellaneous other services. Comparing the two unit types, single family/duplex owners are relatively more likely to hire contractors (87 percent vs. 55 percent), perform work themselves (78 percent vs. 64 percent), 11 Note as well that additional detailed Aspen Homeowner survey results by unit type are also cont ained in Appendix A, while additional survey results by occupancy type are contained in Appendix B. P19 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 12 and obtain miscellaneous personal services locally (27 percent vs. 15 percent). By contrast, condominium/townhome owners are more likely to belong to a homeowners association (98 percent vs. 21 percent) or hire a property management company (57 percent vs. 27 percent). Figure 1 Providers Used for Home Operations and Upkeep, and Use of Additional Services Obtained In the Home: by Unit Type (Free-Market Units Only)  Utilization of service providers by occupancy type: Use of service providers has been examined for two occupancy groups: 1) owner occupants (defined as owner occupancy at least 40 weeks per year), and 2) all other occupancies (i.e. owner-occupied less than 40 weeks per year, including households using their unit primarily as second homes, short-term rentals, long-term rentals, and/or other uses or combinations of uses). As illustrated in Figure 2 to follow, most owner-occupants report that operations and maintenance is performed by themselves or by family members (90 percent). Additionally, 74 87% 78% 27% 21% 8% 1% 27% 18% 7% 6% 6% 1% 2% 1% 1% 55% 64% 57% 98% 11% 1% 15% 4% 5% 4% 3% 3% 1% 1% 1% 0%20%40%60%80%100% Hire contractors/employees/specialty services Work is performed by myself or family members Hire a property management company Use or belong to a homeowners association Hire an on-site caretaker Other Total share obtaining other services locally (net) Chef/kitchen help/catering Pet sitter Child care provider/nanny Personal trainer Other Personal assistant Driver, pilot Concierge/butler Percent of Respondents Single family / duplex Condominium / townhome Which of the following do you use to maintain and operate your Aspen residence? What other services do you obtain in your home when in Aspen? (Percent obtaining services locally only; providers traveling with household excluded) P20 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 13 percent hire contractors/employees/specialty services, while 45 percent belong to a homeowners association and small shares hire a property management company (14 percent) or an on-site caretaker (4 percent). In addition, 20 percent obtain miscellaneous personal services locally, such as a pet sitter (7 percent), chef/kitchen help/catering (7 percent), and child care provider/nanny (5 percent). Non-owner-occupants mainly take care of work through homeowners associations (73 percent), contractors/employees/specialty services (67 percent), doing work themselves (62 percent), or hiring a property management company (59 percent). An additional 13 percent indicated that they hire an on-site caretaker. In addition, 20 percent obtain miscellaneous personal services locally, such as chef/kitchen help/catering (12 percent) and child care provider/nanny (5 percent). Comparing the two occupancy types, owner-occupants are relatively more likely to perform work themselves (90 percent vs. 62 percent) and are slightly more likely to hire contractors (74 percent vs. 67 percent). By contrast, non-owner-occupants are relatively more likely to belong to a homeowners association (73 percent vs. 45 percent), hire a property management company (59 percent vs. 14 percent), or hire an on-site caretaker (13 percent vs. 4 percent). Both groups are about equally likely to obtain other miscellaneous personal services (20 percent each). It should be recognized that results by occupancy type and unit type are interrelated. In the survey response, most owner-occupants lived in single family/duplex units (66 percent), with 31 percent living in condominiums/townhomes and 3 percent living in other unit types. By contrast, other occupancy groups were less likely to own a single family/duplex unit (32 percent), and more likely to own a condominium/townhouse unit (66 percent), with 2 percent owning other unit types. P21 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 14 Figure 2 Providers Used for Home Operations and Upkeep, and Use of Additional Services Obtained In the Home: by Occupancy Type (Free-Market Units Only)  Utilization of service providers by floor area – single family/duplex units: Generally speaking, for single family/duplex units, the use of paid service providers increases with floor area. As home sizes rise from under 2,000 square feet to 5,000+ square feet, use of the following service providers increases: contractors (73 percent to 90 percent), homeowners associations (16 percent 49 percent), property management companies (13 percent to 47 percent), caretakers (3 percent to 16 percent), and miscellaneous personal services (10 percent to 32 percent). These results would support an expectation that employment needs accordingly rise as home sizes increase, potentially at an increasing rate as homes get larger (insofar as more types of service providers are used, and as the space needing service increases). 90% 74% 45% 14% 4% 0% 20% 7% 10% 5% 5% 2% 1% 0% 0% 62% 67% 73% 59% 13% 2% 20% 12% 4% 5% 4% 3% 2% 2% 1% 0%20%40%60%80%100% Work is performed by myself or family members Hire contractors/employees/specialty services Use or belong to a homeowners association Hire a property management company Hire an on-site caretaker Other Total share obtaining other services locally (net) Chef/kitchen help/catering Pet sitter Child care provider/nanny Personal trainer Other Personal assistant Driver, pilot Concierge/butler Percent of Respondents Owner-occupied at least 40 weeks/year All other occupancies Which of the following do you use to maintain and operate your Aspen residence? What other services do you obtain in your home when in Aspen? (Percent obtaining services locally only; providers traveling with household excluded) P22 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 15 Figure 3 Providers Used for Home Operations and Upkeep, and Use of Additional Services Obtained In the Home: Single Family/Duplex Units, by Floor Area (Free-Market Units Only) 92% 73% 16% 13% 3% 2% 10% 5% 3% 3% 0% 0% 0% 0% 0% 86% 92% 10% 21% 1% 1% 27% 14% 9% 8% 3% 1% 0% 0% 0% 74% 93% 20% 26% 9% 1% 27% 23% 5% 5% 6% 1% 0% 0% 0% 64% 89% 27% 42% 18% 0 37% 23% 12% 7% 14% 2% 7% 0% 2% 63% 90% 49% 47% 16% 2% 32% 20% 5% 9% 7% 2% 7% 7% 2% 0%20%40%60%80%100% Work is performed by myself or family members Hire contractors/employees/specialty services Use or belong to a homeowners association Hire a property management company Hire an on-site caretaker Other Total share obtaining other services locally (net) Chef/kitchen help/catering Pet sitter Child care provider/nanny Personal trainer Other Personal assistant Driver, pilot Concierge/butler Percent of Respondents 1,999 sqft or less 2,000 - 2,999 sqft 3,000 - 3,999 sqft 4,000 - 4,999 sqft 5,000+ sqft Which of the following do you use to maintain and operate your Aspen residence? What other services do you obtain in your home when in Aspen? (Percent obtaining services locally only; providers traveling with household excluded) P23 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 16 Figure 4 Providers Used for Home Operations and Upkeep, and Use of Additional Services Obtained In the Home: Condominium/Townhome Units, by Floor Area (Free-Market Units Only) 99% 65% 55% 50% 6% 1% 10% 3% 4% 3% 2% 2% 1% 1% 1% 97% 66% 57% 57% 14% 0% 16% 4% 4% 5% 3% 4% 1% 1% 1% 91% 66% 57% 71% 18% 2% 33% 11% 13% 4% 5% 9% 0% 4% 2% 0%20%40%60%80%100% Use or belong to a homeowners association Work is performed by myself or family members Hire a property management company Hire contractors/employees/specialty services Hire an on-site caretaker Other Total share obtaining other services locally (net) Chef/kitchen help/catering Pet sitter Child care provider/nanny Personal trainer Other Personal assistant Driver, pilot Concierge/butler Percent of Respondents Under 1,000 sqft 1,000 - 1,999 sqft 2,000 - 2,999 sqft Which of the following do you use to maintain and operate your Aspen residence ? What other services do you obtain in your home when in Aspen? (Percent obtaining services locally only; providers traveling with household excluded) P24 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 17  Utilization of service providers by floor area – condominium/townhome units: For condominium/townhome units, the use of paid service providers generally shows more moderate variation by floor area than for single family/duplex units, at least across the size groupings analyzed. As condominium/townhome floor area rises from under 1,000 sqft to 2,000+ sqft, there is increased use of contractors (50 percent to 71 percent), on-site caretakers (6 percent to 18 percent), and miscellaneous personal services (10 percent to 33 percent). By contrast, use of HOAs decreases slightly with size (99 percent to 91 percent), while use of property management companies holds relatively steady with size (55-57 percent), as does the incidence of self-performed work (65-66 percent). Conversion of Expenditures on Home Services to Jobs In addition to tracking the incidence of use of services, the Homeowner Survey also gathered data on annual expenditures made for each type of service provider. These results were converted into estimates of employment associated with home maintenance and upkeep, through the use of expenditures per employee ratios. This section outlines the methodology utilized to convert homeowner expenditures to employment. The employment findings themselves are analyzed later in this chapter. The Homeowner Survey collected data on five different types of home operations expenditures, as listed below:  Expenditures on homeowner association (HOA) dues / assessments  Expenditures on property management company (PMC) services  Expenditures on contractors / employees / specialty services hired by the household  Expenditures on on-site caretakers  Expenditures on an array of other services obtained in the home (e.g. kitchen help/catering, childcare/nanny, personal assistant, etc.). For most types of home service providers, annual spending amounts were converted into employees12 based on published economic data on average business revenue per employee for the applicable service, per the 2007 U.S. Economic Census, inflation-adjusted to 2014 (on the basis of the Denver- Boulder-Greeley Consumer Price Index [CPI], or Quarterly Census of Employment and Wages [QCEW] wage rates). Where available, Pitkin County factors were used; if Pitkin County data was unavailable, Colorado (preferably) or U.S. nationwide data was used instead. For some expenditure categories, other or additional conversion approaches were used. The methodology is summarized by type of service provider below.  Property management companies (PMCs): We assumed a conversion ratio of $93,974 in homeowner expenditures on PMC services per job. This is based on the 2007 Pitkin County ratio of revenue per job for NAICS13 industry sector 531311 (residential property managers) per the US Economic Census, inflation-adjusted to 2014 based on the 2007-2014 change in average 12 Employees represent the number of workers that would typically be employed to complete the service, based on existing employment patterns in the respective industries, which generally includes a blended hybrid of full- time and part-time employees. 13 North American Industry Classification System. P25 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 18 QCEW wage per employee for this sector in Pitkin County (resulting in a figure of $103,173 PMC expenditures per PMC job). The $103,173 figure was then divided by 1.1, to reflect a finding from an RRC survey of Pitkin County PMCs (discussed in a separate section later) that PMCs purchase an average of approximately 0.1 FTE in subcontracted labor for every 1.0 job they have on in-house staff (i.e., approximately 0.1 additional service jobs is directly associated with every 1.0 PMC job).  Homeowners associations (HOAs): We assumed a conversion ratio of $99,059 in HOA expenditures per job. This reflects an 80 percent/20 percent weighted blend of expenditures:jobs ratios for PMCs (per above) and HOAs respectively.14 For HOAs serving as employers, the expenditures:jobs ratio is based on 2007 U.S. revenue per job for NAICS sector 8139904 (property owners’ associations), adjusted to 2014 based on the 2007-2013 change in average wage per employee for the most similar comparable sector nationwide (NAICS sector 813990 – “other similar organizations, except business, professional, labor, and political organizations”), and the 2013-14 Denver CPI. This resulted in an estimate of $132,134 per HOA direct job. The PMC and HOA expenditures:jobs ratios were then blended on a weighted 80 percent/20 percent basis, and divided by 1.1 to account for subcontracted labor.  Other contracted services: We assumed a conversion ratio of $109,882 in other contracted services expenditures per direct job. This is based on a 67 percent/33 percent blend of expenditures:employment ratios for NAICS sector 5617 (services to buildings and dwellings) and maintenance and repair construction (IMPLAN industries 39 and 40) respectively. Looking at each of these in turn, the expenditures:job ratio for NAICS sector 5617 is based on the 2007 Pitkin County ratio of revenue per job for that sector, adjusted to 2014 based on the 2007-2014 change in average wage per employee for that sector in Pitkin County. The IMPLAN expenditures:employment ratio comes from the IMPLAN modeling system for Pitkin County in 2012 (based on the aggregate for residential and nonresidential structures), inflation-adjusted to 2014.15  Caretakers: We assumed a conversion ratio of $51,924 in expenditures on caretakers per direct job. This is based on a 75 percent / 25 percent weighted blend of wage rates for private household employees as reported by QCEW (industry 814 – private households, in Pitkin County, in 2014), and as estimated by IMPLAN (IMPLAN sector 425 – private household operations). The blended average wage was divided by 0.85, to reflect assumed total compensation costs of approximately 82% wages / 18% benefits.  Other services obtained in the home: Expenditure:employment ratios were developed for other services obtained in the home on a case by case basis, depending on the service received. Generally, the ratios were either assumed to be similar to caretakers (and more generally, private household employees), or were derived from an averaging of business sales:employment ratios (from the 2007 US Economic Census data for Colorado, inflation- 14 While some Aspen HOAs directly hire their own in-house staff to manage the property (and thus the HOA functions as an employer), most appear to contract with property management companies to manage HOA business. 15 IMPLAN is a proprietary economic modeling system, along with associated location-specific economic data, sold by the Minnesota Implan Group. P26 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 19 adjusted based on CPI to 2014), and average occupational wages (as reported for Colorado in 2013 by the Occupational Employment Statistics & Wages Program). It should be noted that only locally-hired employees were included; employees who traveled with the household (as identified on the survey) were excluded from the employment estimates. o Chef/kitchen help/catering: We assumed a conversion ratio of $58,192 in expenditures on chef/kitchen help/catering per direct job. This reflected a 50/50 weighted average of the sales:employment ratio for NAICS 72232-catering businesses (in Colorado, per 2007 Economic Census, inflation-adjusted to 2014), and the 2013 Colorado average annual wage for chefs and head cooks (multiplied by 1.25 to reflect compensation in the form of benefits). o Child care provider/nanny: We assumed a conversion ratio of $36,063 in expenditures on child care services per direct job. This reflected a 50/50 weighted average of the sales:employment ratio for NAICS 6244-child care businesses (in Colorado, per 2007 Economic Census, inflation-adjusted to 2014), and the 2013 average annual wage for childcare workers (multiplied by 1.25 to reflect compensation in the form of benefits). o Personal trainer: We assumed a conversion ratio of $47,648 in expenditures on personal training services per direct job. This reflected a 50/50 weighted average of the sales:employment ratio for NAICS 7139409-other fitness and recreational sports center businesses (in Colorado, per 2007 Economic Census, inflation-adjusted to 2014), and the 2013 average annual wage for fitness trainers and aerobics instructors (multiplied by 1.25 to reflect compensation in the form of benefits). o Driver/pilot: We assumed a conversion ratio of $102,964 in expenditures on driver/pilot services per direct job. This reflected a combination of sales:employment ratios in Colorado for NAICS 485320-limousine services and NAICS 488190-other support activities for air transportation, as well as average occupational wages in Colorado for taxi drivers/chauffeurs and airline pilots, copilots and flight engineers. o Concierge/butler, personal assistant, and other household employees: We assumed a conversion ratio of $51,924 in expenditures per direct job, equivalent to the average used for caretakers, and more generally for private household operations/employees (per above). Relationship between Employment and Floor Area: by Unit Type A total of 680 survey responses were available to evaluate the relationship between floor area and employment, by unit type. As shown in Table 5 to follow, most available survey responses were concentrated in the lower to middle home size categories, and were less numerous in the largest size categories, although it is notable that several larger units were included in the sample. For purposes of evaluating the relationship between home size and employment, homes were grouped into 500 square foot (sqft) increments, and the average floor area and the average employment were P27 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 20 calculated within each increment. The home size groups were then arrayed on a sqft:employment scatterplot, and trend lines were fitted to the data to model the sqft:employment relationships.16 Table 5 Average Floor Area, Average Employment, and Number of Usable Survey Cases by Floor Area Size Category and Unit Type The results of this analysis for single family/duplex homes and condominiums/townhomes are shown in Figure 5 and Figure 6 respectively to follow. For both unit types, floor area:employment relationships were only evaluated across home size ranges (in 500 sqft increments) up to 7,000 sqft for single- family/duplex residences, and up to 3,500 sqft for condominium/townhome residences (larger units were excluded due to small sample sizes).17 16 This approach to evaluating the relationship between home size and employment was chosen to give equal weight to homes in different size categories. Additionally, the approach also strips out the significant variation that exists between homes within a given size increment, and thus emphasizes an understanding of the “average” employment within a given size grouping. This approach was also found to yield a closer fit between modeled and average actual employment for most size groupings than other statistical approaches (particularly curves fitted to ungrouped data). 17 For single family/duplex units, the <500 sqft and 500-999 sqft categories were consolidated for analysis purposes, as were the 6000 – 6499 sqft and 6500 – 6999 sqft categories, due to limited sample sizes in these ranges. Floor area Average Average # of Average Average # of square footage floor area employment survey floor area employment survey category per unit per unit responses per unit per unit responses Under 500 sqft 240 0.085 1 389 0.047 30 500 thru 999 812 0.022 6 768 0.107 147 1000 thru 1499 1,223 0.043 15 1,171 0.167 132 1500 thru 1999 1,678 0.073 24 1,698 0.211 39 2000 thru 2499 2,217 0.076 34 2,151 0.205 24 2500 thru 2999 2,673 0.092 48 2,629 0.262 12 3000 thru 3499 3,135 0.109 39 3,213 0.294 5 3500 thru 3999 3,657 0.204 32 n/a n/a n/a 4000 thru 4499 4,120 0.367 28 4,400 0.215 2 4500 thru 4999 4,703 0.255 14 4,750 0.280 2 5000 thru 5499 5,083 0.301 17 n/a n/a n/a 5500 thru 5999 5,706 0.178 6 5,700 0.309 3 6000 thru 6499 6,039 1.514 3 n/a n/a n/a 6500 thru 6999 6,619 0.435 4 n/a n/a n/a 7000 thru 7499 7,169 0.420 2 n/a n/a n/a 7500 thru 7999 7,500 2.077 2 n/a n/a n/a 8000 thru 8499 8,000 0.549 1 n/a n/a n/a 8500 thru 8999 8,650 0.510 2 n/a n/a n/a 9000 thru 9499 9,100 0.478 3 n/a n/a n/a 9500 sqft or more 12,000 2.347 3 n/a n/a n/a Total 3,419 0.217 284 1,212 0.149 396 CONDOMINIUM/TOWNHOMESINGLE-FAMILY RESIDENCE/DUPLEX P28 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 21 For both unit types, there is a statistically significant relationship between home size and floor area. In the case of single family/duplex units, the relationship appears to be exponential, with an accelerating level of employment as floor area increases. For condominiums/townhomes, the relationship between employment and floor area appears to be more linear in nature across the size range evaluated.18 Figure 5 Association between Operations/Maintenance Employment and Floor Area: Single Family/Duplex Units 18 For both unit types, the strength of the relationship between square footage and employment is suggested by the high R squared values (approximately 0.85 to 0.93 for each unit type, where 0 indicates no relationship and 1 indicates a perfect relationship). However, it should be cautioned that the R squared results are significantly inflated using “grouped” data, because the significant variation that exists among individual homes within a given size grouping is stripped out in the grouping process. As such, the R squared measures shown should not be interpreted as representing the strength of the relationship between square footage and employment at the individual unit level, but rather as a measure of the relationship at a grouped level. y = 0.0262739146e0.0004908383x R² = 0.8519679637 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Em p l o y m e n t Floor Area Average sqft & employment for homes in each sqft increment Expon. (Average sqft & employment for homes in each sqft increment) P29 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 22 Figure 6 Association between Operations/Maintenance Employment and Floor Area: Condominium/Townhome Units Based on the statistical analyses above, the relationship between floor area and operations and maintenance employment for single family / duplex units and condominiums/townhomes respectively are described by the equations shown in Table 6 below. Table 6 Modeled Relationship between Operations/Maintenance Employment and Floor Area: By Unit Type Unit Type Modeled Relationship between Floor Area and Operations and Maintenance Employment Floor Area Range Modeled Single family home/duplex y = 0.0262739146e0.0004908383x 0 – 6,999 sqft Condominium/townhome y = 0.0000818430x + 0.0443701179 0 – 3,499 sqft Note: x=floor area, y=employment. Table 7 and Figure 7 to follow illustrate the modeled relationships between floor area and employment across the size ranges evaluated.19 19 For single family/duplex homes in excess of 7,000 square feet, employment:square footage relationships might be modeled on the basis of the linear slope between 5,000 and 7,000 square feet, i.e. an additional 0.1 28 employees for every 500 square feet in excess of 7,000 square feet (e.g. 0.944 employees at 7500 sqft, 1.072 employees at 8000 sqft, etc.). Alternatively, multi-community data might be considered as well, given larger sample sizes for large units (discussed later in this chapter). For condominiums/townhomes in excess of 3,500 square feet, employment:square footage relationships might be assumed to be described by the same function as below 3,500 square feet, i.e. an additional 0.041 employees for each 500 square foot increment in excess of 3,500 square feet. y = 0.0000818430x + 0.0443701179 R² = 0.9375733510 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Em p l o y m e n t Floor Area Average sqft & employment for homes in each sqft increment Linear (Average sqft & employment for homes in each sqft increment) P30 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 23 Table 7 Modeled Relationship between Operations/Maintenance Employment and Floor Area: By Unit Type Figure 7 Modeled Relationship between Operations/Maintenance Employment and Floor Area: By Unit Type Square footage Single family/duplex Condominium/townhome 500 0.034 0.085 1,000 0.043 0.126 1,500 0.055 0.167 2,000 0.070 0.208 2,500 0.090 0.249 3,000 0.115 0.290 3,500 0.146 0.331 4,000 0.187 n/a 4,500 0.239 n/a 5,000 0.306 n/a 5,500 0.391 n/a 6,000 0.499 n/a 6,500 0.638 n/a 7,000 0.816 n/a OPERATIONS & MAINTENANCE EMPLOYMENT 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Em p l o y m e n t Floor Area Condominium/townhome Single family/duplex P31 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 24 Relationship between Employment and Home Size: by Unit Type and Occupancy A similar statistical approach was used to model the relationship between employment and floor area, for different occupancy types. Specifically, employment:floor area relationships were examined for units which are owner-occupied at least 40 weeks per year, and units with all other occupancy patterns (e.g. vacation home, short-term rental, long-term rental, etc.). Table 8 below shows the statistical relationships between employment and floor area which were derived for each unit type / occupancy combination. Figure 8 and Figure 9 to follow provide a graphical illustration of these relationships for single-family/duplex units and condominiums/townhomes respectively. For single family/duplex units, employment generation (on average) is modeled to be highly similar for owner-occupied and non-owner-occupied units across the size ranges modeled. For condominiums/townhomes, employment generation (on average) is modeled to be somewhat lower for owner-occupied units than for other occupancies. Table 8 Modeled Relationship between Operations/Maintenance Employment and Floor Area: By Unit Type and Occupancy Unit type Occupancy Modeled relationship between floor area and operations and maintenance employment Size range modeled Usable survey cases in size range Single family home/duplex Owner-occupied 40+ weeks/yr y=0.0175178311e0.0005898944x 0 – 5,499 sqft 128 Single family home/duplex Other occupancies y= 0.0256683785e0.0005052129x 0 – 6,999 sqft 129 Condominium/townhome Owner-occupied 40+ weeks/yr y=0.0000874692x + 0.0004218381 0 – 2,499 sqft 76 Condominium/townhome Other occupancies y=0.0000764484x + 0.0594369631 0 – 3,499 sqft 304 Note: x= floor area (in square feet), y=employment. P32 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 25 Figure 8 Modeled Relationship between Operations/Maintenance Employment and Floor Area: Single Family/Duplex Units, by Occupancy Type Figure 9 Modeled Relationship between Operations/Maintenance Employment and Floor Area: Condominiums/Townhomes, by Occupancy Type 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Em p l o y m e n t Floor Area Single family/duplex, owner- occupied 40+ weeks/year Single family/duplex, other occupancies 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 500 1000 1500 2000 2500 3000 3500 Em p l o y m e n t Square Footage Condominium/townhome, other occupancies Condominium/townhome, owner-occupied 40+ weeks/year P33 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 26 Total Labor Associated with Home Operations/Upkeep (Including Owner Labor) While the preceding analysis has focused on the relationship between paid employment and unit size/type/occupancy characteristics, it is important to note that many homeowners spend a considerable amount of their own time on home operations and maintenance tasks. To evaluate this owner contribution, the Aspen homeowner survey asked respondents to estimate how many hours per year they or other family members devote to home operations and upkeep. This hourly figure was divided by 2000 to derive an annualized measure of “FTE labor” contributed by the owner. This owner labor contribution was then added to the employee labor measure to provide an indicator of total labor associated with home operations and upkeep, as well as the share of total labor contributed by the owner’s household. Summary statistics by unit type and occupancy are shown in Table 9 below. As might be expected, owner-occupants tend to supply more labor for maintaining their home than non-owner-occupants. On average, for single-family/duplex units, owner-occupants supply approximately 49 percent of the total labor required to maintain the home, while non-owner-occupants supply approximately 11 percent of the labor needed for their units. Similarly, for condominiums/townhomes, owner-occupants supply an average of 35 percent of the total labor required to maintain the home, while non-owner-occupants supply an average of 10 percent of the labor needed for their units. Table 9 Average Total Labor Associated with Home Operations and Upkeep: Paid Labor and “Owner FTE Labor” By Unit Type and Occupancy Note: Owner FTE labor is calculated as total annual hours spent on home operations/upkeep by the owner’s household, divided by 2,000 hours. Note: Sample size is slightly larger by unit type alone, then by occupancy type within unit type, as reflected above. Taking the analysis a step further, using the same statistical approach as previously, total labor:floor area relationships were modeled by unit type and occupancy. As shown in Figure 10 to follow, for single family/duplex units, the total labor outlay associated with home maintenance and operations was found Unit Type Occupancy Paid Employees: FTE Owner labor: FTE Total FTE (paid & owner) Owner FTE as a share of Total FTE Survey cases Single family/duplex Owner-occupied 40+ weeks/year 0.135 0.127 0.262 49%106 Single family/duplex Other occupancies 0.292 0.035 0.327 11%124 Single family/duplex Total 0.221 0.077 0.298 26%233 Condo/townhome Owner-occupied 40+ weeks/year 0.106 0.056 0.162 35%61 Condo/townhome Other occupancies 0.170 0.018 0.188 10%259 Condo/townhome Total 0.157 0.026 0.182 14%324 Total Owner-occupied 40+ weeks/year 0.124 0.101 0.226 45%167 Total Other occupancies 0.209 0.024 0.233 10%383 Total Total 0.184 0.047 0.231 20%557 P34 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 27 to be higher for owner-occupied homes than other occupancies, after including the owner labor contribution. For condominiums/townhomes (Figure 11), owner-occupied and non-owner-occupied units were found to incur similar labor outlays.20 This analysis helps to shed light on the impact of owner contribution to home operations and upkeep. To the extent owners (and especially owner-occupants) contribute to home operations and upkeep – and house themselves – they avert some of the employment and workforce housing demand that might otherwise stem from maintaining and operating the home. Figure 10 Modeled Relationship between Operations/Maintenance Employment plus “Owner FTE Labor” vs. Floor Area: Single Family/Duplex Units, by Occupancy Type 20 It should be noted that the employment:sqft relationships derived from this analysis are based on a smaller number of usable survey responses (n=550) than the previous analysis of employment by unit type by occupancy type (n=637). As such, the curves from these sets of analysis cannot be directly c ompared. 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Em p l o y m e n t p l u s " O w n e r F T E L a b o r " Floor Area Single family/duplex, other occupancies Single family/duplex, owner- occupied 40+ weeks/year P35 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 28 Figure 11 Modeled Relationship between Operations/Maintenance Employment plus “Owner FTE Labor” vs. Floor Area: Condominiums/Townhomes, by Occupancy Type Aspen Property Management Company Survey With outreach assistance from the Aspen Community Development Department, RRC conducted a survey of Aspen property management companies. The primary purpose of the survey was to gather information about the employment requirements associated with delivering property management services to homes in Aspen. A total of 13 Aspen property management companies were contacted and five provided data about their operations via surveys or interviews. The results provide an additional point of reference for understanding Aspen’s residential employment picture, particularly employment associated with property management services. Selected notable findings from the research are summarized below.  Each of the responding property management firms provides both services related to property upkeep (the physical asset) as well as concierge/personal services to the owner/occupants. Some of the responding firms also provide short-term rental management services, HOA management services, and/or commercial property management services.  Firms specializing in property management services to individual residential owners only (not HOAs or commercial property) utilize an average of approximately 0.5 FTE in labor per residential unit served.  For every in-house FTE, responding firms subcontract for an average of approximately 0.1 FTE in additional labor. 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 500 1000 1500 2000 2500 3000 3500 Em p l o y m e n t p l u s " O w n e r F T E L a b o r " Floor Area Condominium/townhome, other occupancies Condominium/townhome, owner-occupied 40+ weeks/year P36 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 29  Each firm was asked to quantify the labor needs associated with a randomly selected unit in each of three categories of their inventory: one unit with “high” employment/service needs, one unit with “average” needs, and one unit with “low” needs. o In the “high employment needs” category, respondents each selected single family/duplex units, with a median of 8,000 square feet of living area. A median of 1,300 hours (0.65 FTE) of in-house and subcontracted labor was used to service the units annually, with a range of 700 to 2500 hours per unit. o In the “average employment needs” category, respondents selected a mix of single family/duplex and condominium/townhome units, with a median of 5,500 square feet of living area. A median of 490 labor hours (0.245 FTE) were spent servicing these units annually. o In the “low employment needs” category, respondents selected a mix of single family/duplex and condominium/townhome units, with a median of 3,200 square feet of living area. A median of 175 labor hours (0.0875 FTE) were spent servicing these units annually. o It should be noted that the labor needs above only reflect labor provided by the property management firms or their subcontractors. To the extent that owners may have used additional service providers (e.g. HOAs, contractors, caretakers, etc.), those employment demands are excluded. o Firms were also asked to comment on factors that caused the respective units to have either “high” or “low” service needs. The following factors were mentioned:  Size. Generally, the larger the size of the unit and property, the greater the service needs; this is consistent with the square footage differences of the units selected in each needs category as summarized above.  Amenities.  Degree to which the owner is in town; greater time in Aspen often equates to higher service needs. Relatedly, firms tend to be busier at the times of year when owners are in town.  Number of persons in owner travel party, including children and guests (higher needs with more people).  Desire of the owner to do things themselves vs. have services provided. Employment Relationships Based on Multi-Community Data (Heated Square Feet) RRC has conducted similar homeowner employment generation surveys in a variety of mountain resort communities over the past 15 years. The data has been aggregated into a single database to permit analyses based on a larger sample of units, which is particularly useful for understanding employment patterns for especially large homes (for which data tends to be limited at the individual community level). Some communities have chosen to base affordable housing mitigation requirements on multi- community patterns rather than data for their community alone. P37 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 30 Specifically, the merged database is based on homeowner surveys conducted in the following areas:  Aspen (2004, 2008, 2014)  Blaine County, ID (2002)  Breckenridge/Upper Blue River Valley, CO (2000/01)  Eagle County, CO (2001)  Gunnison County, CO (1999/00)  San Miguel County, CO (1999/00)  Snowmass Village, CO (2008)  Teton County, WY (1999/00, 2012) It should be noted that this database is benchmarked to “heated square feet” (excluding heated garages), rather than floor area as defined by the Aspen Land Use Regulations. Aspen’s data has been incorporated into the merged database on a heated square footage basis. Comparisons between Aspen and multi-community data is also made on a heated square footage basis in this section, rather than a floor area basis. A total of 4,531 usable survey cases with heated square footage, employment, and unit type are available from the database. Similar statistical techniques to those employed above were used to derive employment:heated square footage relationships for different unit types and occupancies. In the multi-community database, an exponential relationship again appears to exist between employment and square footage for single family/duplex units, similar to Aspen’s results, as illustrated in Figure 12 to follow. Also of note, when fitted across the 0 – 6,999 sqft range only, Aspen’s modeled results and the multi-community modeled results are highly similar across most of the size spectrum (except units larger than approximately 6,000 sqft, where Aspen’s employment generation becomes slightly higher), as shown in Figure 13.21 The rough similarity of results provides a “reasonableness check” on the Aspen results, and it could also potentially be grounds for considering using the multi- community average data for policy purposes (e.g. for very large units), although a conversion from heated square feet to floor area would be needed before doing so. 21 Note that square footage:employment models vary depending on the range of home sizes included in the modeling process, insofar as the models are designed to produce a single equation which best fits all of the available datapoints. As such, models for a given community/area are likely to differ to the extent they are derived from differing home size ranges. P38 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 31 Figure 12 Association between Operations/Maintenance Employment and Heated Square Footage: Single Family/Duplex Units (Multi-Community Database) Figure 13 Modeled Relationship between Operations/Maintenance Employment and Heated Square Footage, Single Family/Duplex Units: Aspen vs. Multi-Community Database (Models derived from homes up to 6,999 sqft only) For condominiums/townhomes, a linear relationship appears to exist between employment and heated square footage in the multi-community database (Figure 14), again similar to Aspen’s pattern. However, Aspen’s modeled employment generation is generally somewhat higher than the multi-community y = 0.0435038234e0.0003251223x R² = 0.9152239732 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 0 2,000 4,000 6,000 8,000 10,000 12,000 Em p l o y m e n t Heated Square Footage Average sqft & employment for SF/duplex homes in each sqft increment Average sqft & employment for SF/duplex homes in each sqft increment Expon. (Average sqft & employment for SF/duplex homes in each sqft increment) 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Em p l o y m e n t Heated Square Footage Chart Title Multi-community database: modeled based on homes thru 6999 sqft Aspen: modeled based on homes thru 6999 sqft P39 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 32 average, particularly as square footage increases, as shown in Figure 15 (data fitted across the 0 – 3,499 sqft range only in both areas for this comparison).22 Figure 14 Association between Operations/Maintenance Employment and Heated Square Footage: Condominium/Townhome Units (Multi-Community Database) 22 Note that heated square footage:employment models vary depending on the range of home sizes included in the modeling process, insofar as the models are designed to produce a single equation which best fits all of the available datapoints. As such, models for a given community/area are likely to differ if derived from differing home size ranges. y = 0.0000421201x + 0.0724057998 R² = 0.7319430357 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Em p l o y m e n t Heated Square Footage Average sqft & employment for units in each sqft increment Average sqft & employment for units in each sqft increment Linear (Average sqft & employment for units in each sqft increment) P40 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 33 Figure 15 Modeled Relationship between Operations/Maintenance Employment and Heated Square Footage, Condominium/Townhome Units: Aspen vs. Multi-Community Database (Models derived from homes up to 3,499 sqft only) Total Residential Employment Generation Total residential employment generation has been calculated from the sum of construction employment (new floor area only) and operations and maintenance employment. The results using factors specific to Aspen (instead of multi-community averages) are summarized in Table 10 to follow, for 500 square foot increments of floor area. As shown, average total employment generation for a single family/duplex unit with 3,000 square feet of floor area is estimated to be 0.445 workers. Looking at the two categories of employment more specifically:  Construction employment per square foot is projected to increase at a linear rate for both unit types, with an approximately 13 percent higher employment generation ra te for single family/duplex units than for condominium/townhome units.  Operations and maintenance employment is estimated to grow at an exponential rate for single family/duplex units, and at a linear rate for condominium/townhome units. As the sum of construction and operations/maintenance employment, total employment is estimated to grow quasi-exponentially for single family/duplex units, and linearly for condominium/townhome units. 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 500 1000 1500 2000 2500 3000 3500 Em p l o y m e n t Heated Square Footage Chart Title Multi-community database: modeled based on units thru 3499 sqft Aspen: modeled based on units thru 3499 sqft P41 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 34 Table 10 Estimated Total Employment by Unit Type and Floor Area Notes:  Operations and maintenance employment excludes “owner FTE labor,” i.e. labor contributed by the owner and household members to unit upkeep.  Results exclude employment associated with personal service employees who travel with the household. The results do not deduct for other types of employees (such as caretakers) who may be housed by the owner.  Operations and maintenance employment for single family/duplex units larger than 7,000 sqft may be assumed to grow by 0.128 employees for every 500 square feet in excess of 7,000 sqft. Operations and maintenance employment for condominium/townhome units larger than 3,500 sqft may be assumed to grow additional 0.041 employees for each 500 square foot increment in excess of 3,500 sqft. Construction employment is assumed to grow linearly beyond 7,000 sqft, at 0.110 employees per 1,000 sqft for single family/duplex units and 0.096 employees per 1,000 sqft for condominiums/townhomes. Floor Single family/Condominium/Single family/Condominium/Single family/Condominium/ area duplex townhome duplex townhome duplex townhome 500 0.055 0.048 0.034 0.085 0.089 0.133 1,000 0.110 0.096 0.043 0.126 0.153 0.222 1,500 0.165 0.144 0.055 0.167 0.220 0.311 2,000 0.220 0.192 0.070 0.208 0.291 0.400 2,500 0.276 0.239 0.090 0.249 0.365 0.488 3,000 0.331 0.287 0.115 0.290 0.445 0.577 3,500 0.386 0.335 0.146 0.331 0.532 0.666 4,000 0.441 0.383 0.187 n/a 0.628 n/a 4,500 0.496 0.431 0.239 n/a 0.735 n/a 5,000 0.551 0.479 0.306 n/a 0.857 n/a 5,500 0.606 0.527 0.391 n/a 0.997 n/a 6,000 0.661 0.575 0.499 n/a 1.161 n/a 6,500 0.716 0.623 0.638 n/a 1.355 n/a 7,000 0.772 0.671 0.816 n/a 1.588 n/a OPERATIONS & MAINTENANCE EMPLOYMENT TOTAL EMPLOYMENT INITIAL CONSTRUCTION EMPLOYMENT P42 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 35 Appendix A: Homeowner Survey Results – by Unit Type Results of the 2014 Aspen Homeowner Survey are summarized in this section of the report, as segmented by unit type (single family/duplex vs. condominium/townhome). Results are limited to free- market units only. Respondent Housing Characteristics Following is a summary of key characteristics of Aspen housing units owned by respondents, particularly physical characteristics of the units. Results are also illustrated in Figure 16 to Figure 25 to follow.  Unit type: A little over half of units represented in the survey response were condominiums/ townhomes (53 percent), followed by single-family houses (33 percent), duplexes (11 percent), and mobile/modular homes (2 percent). For purposes of the remainder of the analysis, results for single family and duplex units have been combined, and mobile/modular units have been excluded.  Restricted vs. free-market housing: Fully 98 percent of respondents overall said their unit was unrestricted free-market housing, while 2 percent said their unit was restricted housing. In the remainder of this section, only free-market units are included in the analysis.  Property location: The most common locations for single-family/duplex residences were the West End (29 percent), Cemetery Lane (24 percent), and East of Aspen (22 percent). The top location for respondents in condominiums/townhomes was downtown (53 percent), followed distantly by the West End (14 percent) and East of Aspen (11 percent).  Number of bedrooms: Single family or duplex homes had an average of 3.3 bedrooms. Most homes had three bedrooms (28 percent), four bedrooms (34 percent), or five bedrooms (21 percent). More modest shares of units had 0 – 2 bedrooms (9 percent) or six or more bedrooms (9 percent). Respondents in condominiums/townhomes on average had 2.1 bedrooms. A majority of these respondents reported having one bedroom (21 percent), two bedrooms (38 percent), or three bedrooms (29 percent), while smaller shares had no bedrooms (5 percent) or four or more bedrooms (7 percent).  Presence and use of accessory units/homes located on property: Fifteen percent of single family/duplex homeowners and 2 percent of condominium/townhome owners said that there was one or more separate, accessory units located on their property. Among respondents reporting the presence of accessory units, most single family/duplex homeowners reported that there was one (73 percent) or two (24 percent) accessory units, with an average of 1.4 units. Fifty percent of condominium/townhome owners with accessory units reported the presence of one, 17 percent reported two, and 33 percent reported 3 or more, with a 2.2 unit average (results for condominiums/townhomes should be interpreted with caution due to a modest response size). P43 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 36 Among single-family/duplex owners reporting the presence of accessory units, the largest share reported that the units were rented long-term to local residents (39 percent). Smaller shares used the units for visiting guests of the owner/household (27 percent) or for household/family member use (24 percent). Condominium/townhome respondents with accessory units indicated the greatest use as a caretaker residence (56 percent), followed by renting long-term to local residents (33 percent) and use by visiting guests of owner/household (33 percent). A modest 4 percent of single-family/duplex homeowners and 0 percent of condominium/townhome visitors indicated that their accessory units are left vacant/not used.  Finished, unfinished, and total living space (including accessory residences, if applicable): Single- family house and duplex homeowners reported that their unit had an average of 3,631 square feet of finished space and a median of 3,300 square feet, as well as an average of 68 unfinished square feet. Condominium/duplex owners reported an average of 1,269 finished square feet (median 1,027 square feet) and an average of 5 unfinished square feet. These figures include space in the primary residence plus any accessory residences on the property, if applicable. As would likely be expected, single family homes/duplexes were significantly larger in total space (average 3,676 square feet, median 3,300 square feet) than condominiums/townhomes (average 1,280 square feet, median 1,045 square feet).  Garage space: Seventy-seven percent of single family/duplex homes and 24 percent of condominiums/townhomes have a garage or access to a common garage. Among single family/duplex homeowners with garages, respondents most frequently reported having one (23 percent) or two (69 percent) parking stalls (average 1.8 stalls). Condominium/townhome owners generally had slightly less garage space, with 55 percent indicating they had one stall and 40 percent indicating there had two (average 1.6 stalls).  Basement space: Basements were less common than garages—32 percent of single family house/duplex homeowners indicated that they have a basement, either finished or unfinished, and 8 percent of condominium/townhome owners did as well. Among single family/duplex homes with a basement, the average basement size was 1,063 square feet with a median of 1,000 square feet. Condominium/townhome owners with a basement reported an average basement size of 556 square feet (median 500 square feet).  Lot size (single family/duplex units): Among single family house/duplex owners, 43 percent reported that their property was a small residential lot (up to 6,000 square feet); 35 percent had a medium residential lot (6,000 – 15,000 square feet); and 18 percent had a large lot (more than 15,000 square feet).  Year residence was built: Single family home and duplex owners reported a broad range of dates that their home was built, ranging from before 1900 up through the present with the largest share of respondents indicating that the unit was built between 2000 and 2009 (21 percent). The average year that single family homes/duplexes were built was 1973 (median 1979). Condominium and townhome owners were most likely to report that their home was built during the 1960s (31 percent) or 1970s (46 percent). Similar to single family homes, the average year of building for condominiums/ townhomes was 1973 (albeit with an earlier median of 1970). P44 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 37  Year residence was purchased: The distribution of purchase dates is similar between single family/duplex respondents and condominium/townhome respondents, with 93 percent and 96 percent respectively purchasing their house between 1970 and today. The largest shares of owners for both unit types bought their residences in the decade of 2000-2009 (33 percent of single family/duplex respondents, 32 percent of condominium/townhome). The average year of purchase by single family house/duplex homeowners was 1998 (median 2000), and the average year of purchase by condominium/ townhome owners was 1996 (median 1999).  Value of residence: Single family home and duplex homeowners reported a wide range of value levels for their homes, with an average value of $4,385,077 and a median of $3,700,000. As would be expected, condominium and townhome owners reported lesser home values, with average value of $1,409,699, with a median of $1,100,000. Most condominium/townhome owners (70 percent) valued their home at between $500,000 and $2,000,000.  Recent remodels/renovations: Twenty-six percent of single family/duplex respondents and forty-one percent of condominium/townhome respondents indicated that they have remodeled recently. Of single family house and duplex owners who have recently renovated, 54 percent reported having renovated between 2010 and 2014. The average remodel cost of single family homes and duplexes was reported to be $588,629, with a median of $300,000. Among condominium and townhome owners who have recently renovated, 57 percent indicated that their remodels occurred between 2010 and 2014, with an average remodel cost of $163,634 and a median of $100,000.  Planned future remodels/renovations: Eight percent of single family home/duplex owners and 10 percent of condominium/townhome owners expressed an intent to remodel soon. Approximately 78 percent of single family home and duplex owners with plans to renovate intended to do so in 2014 or 2015, while 22 percent expected their plans to be completed in 2016 or later. Single family and duplex homeowners expected to spend an average of $487,632 on their remodel (median $200,000). Most condominium and townhome owners also expected to remodel in 2014 or 2015 (76 percent), while the other 24 percent plan to complete renovations later. The planned cost of remodeling for condominiums and townhomes on average was $112,105 (median $45,000). P45 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 38 Figure 16 Residence Location Figure 17 Number of Bedrooms Source: 2014 Homeowner Survey; RRC Associates. P46 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 39 Figure 18 Accessory Units Source: 2014 Homeowner Survey; RRC Associates P47 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 40 Figure 19 Finished and Unfinished Heated Space (in square feet) Source: 2014 Homeowner Survey; RRC Associates 0% 2% 6% 7% 23% 27% 15% 21% 91% 4% 6% 7% 37% 31% 10% 11% 2% 2% 1% 98% 2% 0% 0%20%40%60%80%100% 1 - 499 sqft 500 - 999 sqft 1000 - 1499 sqft 1500 - 1999 sqft 2000 - 2999 sqft 3000 - 3999 sqft 4000 - 4999 sqft 5000+ sqft 0 sqft Under 499 sqft 500+ sqft Percent of Respondents Single family / duplex Condominium or townhome HEATED, FINISHED SQUARE FEET HEATED, UNFINISHED SQUARE FEET SINGLE FAMILY/DUPLEX Average: 3631 sqft; Median: 3300 sqft CONDO/TOWNHOME Average: 1269 sqft; Median: 1026.5 sqft SINGLE FAMILY/DUPLEX Average: 68 sqft; Median: 0 sqft CONDO/TOWNHOME Average: 5 sqft; Median: 0 sqft P48 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 41 Figure 20 Total Heated Space (in square feet) Source: 2014 Homeowner Survey; RRC Associates 0% 2% 5% 7% 23% 27% 15% 22% 7% 36% 32% 10% 11% 2% 2% 1% 0%10%20%30%40% 1 - 499 sqft 500 - 999 sqft 1000 - 1499 sqft 1500 - 1999 sqft 2000 - 2999 sqft 3000 - 3999 sqft 4000 - 4999 sqft 5000+ sqft Percent of Respondents Single family / duplex Condominium or townhome SINGLE FAMILY/DUPLEX Average: 3676 sqft; Median: 3300 sqft CONDO/TOWNHOME Average: 1280 sqft; Median: 1045 sqft P49 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 42 Figure 21 Garage/Basement Size Source: 2014 Homeowner Survey; RRC Associates 77% 32% 16% 23% 69% 6% 1% 6% 12% 20% 8% 26% 15% 13% 24% 8% 70% 55% 40% 3% 3% 22% 22% 41% 0% 7% 4% 4% 0%20%40%60%80%100% A garage A finished or unfinished basement None of the above 1 2 3 4 or more 1 - 249 sqft 250 - 499 sqft 500 - 749 sqft 750 - 999 sqft 1000 - 1499 sqft 1500 - 1999 sqft 2000+ sqft Percent of Respondents Single family / duplex Condominium or townhome SINGLE FAMILY/DUPLEX Average: 1063 sqft; Median: 1000 sqft CONDO/TOWNHOME Average: 556 sqft; Median: 500 sqft DOES YOUR RESIDENCE HAVE: (If have garage) NUMBER OF PARKING STALLS (If have basement) BASEMENT SQUARE FOOTAGE P50 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 43 Figure 22 Lot Size and Year Built/Purchased Source: 2014 Homeowner Survey; RRC Associates P51 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 44 Figure 23 Value of Residence Source: 2014 Homeowner Survey; RRC Associates P52 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 45 Figure 24 Remodeling Plans, and Details of Recent Past Remodel Source: 2014 Homeowner Survey; RRC Associates P53 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 46 Figure 25 Future Remodeling Plans Source: 2014 Homeowner Survey; RRC Associates Unit Usage Characteristics Table 11 to follow illustrates the average number of weeks homes are used for a variety of purposes across a 52-week year, both overall and segmented by unit type. It should be understood that the data on “average weeks of use” reflect net total weeks of use across a range of use types, not for a single use type. For example, long-term rentals to local residents account for a net annual average of 4.1 weeks of P54 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 47 occupancy across all respondent homes, including homes that are not used for long-term rentals at all. With this understanding in mind, key findings include the following:  Overall - all respondents: Across the entire set of responses, the leading use of homes is as a primary residence for the owner (average 20.0 weeks, or 39 percent of time available for occupancy in a year). To a lesser extent, homes are used as a vacation rental (14 percent, including time occupied and unoccupied), as a vacation home occupied by the owner or guests of owner (10 percent), and rented long-term to local residents (8 percent of available time). Additionally, units are vacant (and not available for vacation rental) an aggregate of 29 percent of the time.  Single family/duplex residences: Among respondents owning a single family house or a duplex, homes are occupied as the primary residence of the owner an average of 54 percent of the year (28.1 weeks) and are vacant (and unavailable for vacation rental) 28 percent of the time (14.6 weeks). Other uses include as a vacation home for the owner/guests (9 percent), a vacation rental (4 percent, including time vacant but available for rent), or a long-term rental to a local resident (4 percent).  Condominium/townhome residences: Among respondents owning a condominium or a townhome, on average the residence is occupied as the primary residence of the owner 24 percent of the time (12.2 weeks) and is vacant 31 percent of the year (16.2 weeks). Respondents reported that their condo/townhome is also commonly used (or available for use) as a vacation rental (23 percent of the year), rented long-term to a local resident (11 percent), or used as a vacation home for themselves or for their guests (10 percent). Table 11 Average Annual Weeks of Use of Home23 UNIT TYPE OVERALL - ALL RESPONDENTS Single family / duplex Condominium / townhome Type of Use # weeks % weeks # weeks % weeks # weeks % weeks Primary residence for owner 20.0 39% 28.1 54% 12.2 24% Vacation home for owner or guests of owner 5.1 10% 4.9 9% 5.4 10% Vacation rental - weeks actually occupied by visitors 3.9 7% 1.0 2% 6.5 13% Vacation rental - weeks avail. for rent, but not occupied 3.4 7% 1.1 2% 5.3 10% Rented long term to local resident 4.1 8% 2.0 4% 6.0 11% Business/corporate function 0.0 0% 0.0 0% 0.0 0% Other use 0.3 1% 0.3 1% 0.3 1% Vacant - not occupied (and not avail. for vacation rental) 15.2 29% 14.6 28% 16.2 31% TOTAL WEEKS 52.0 100% 52.0 100% 52.0 100% Source: 2014 Homeowner Survey; RRC Associates. 23 To clarify, the data on “average weeks of use” reflect net total weeks of use across a range of use types, not for a single use type. For example, long-term rentals to local residents account for a net annual average of 4.1 weeks of occupancy across all respondent homes, including homes that are not used for long-term rentals at all. P55 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 48 Respondent Household/Demographic Characteristics Following is a summary of selected demographic characteristics of the households of respondents to the survey.  Who typically occupies your Aspen home when you are in residence? Most respondents said they themselves (95 percent of single family/duplex respondents, 89 percent of condominium/ townhome respondents) and/or their spouse/partner (77 percent single family/duplex, 62 percent condominium/townhome) occupy their unit while they are in residence. Smaller shares of single family home/duplex owners and condominium/townhome owners said their unit is typically occupied by children (56 percent and 42 percent), friends (34 percent and 33 percent), or relatives/other family members (32 percent and 26 percent). Very small proportions share their unit with business associates (4 percent each) or rent a room to housemate(s) (2 percent and 1 percent). Nine percent of condominium/townhome respondents and 1 percent of single family/duplex respondents said they don’t use their home for personal use.  Total persons who live/stay in your home while you are in residence: Respondents said an average of 3.4 persons (including themselves) stay in their single family home/duplex while they are in residence and an average of 3.0 persons stay in their condominium/townhome while they are in residence.  Total persons under age 18 in the home: Forty-four percent of single family/duplex owners and 37 percent of condominium/townhome owners indicated that children under age 18 typically live or stay in their home. On average, owners of both unit types have 1.0 children under 18 in their homes.  Total persons who are retired: Half of single family/duplex respondents (50 percent) and 45 percent of condominium/townhome respondents indicated that one or more retirees reside in their household. Single family house/duplex owners reported an average of 0.8 retirees, while condominium/townhome owners reported an average of 1.0 retirees.  Total persons who work in Aspen: Thirty-one percent of single family/duplex owners indicated that one or more Aspen workers reside in their household (average 0.5 persons). Condominium/townhome owners were less likely to report the presence of residents employed in Aspen, with an 18 percent incidence and an average of 0.2 persons.  Total persons who work in the Roaring Fork Valley: Thirty-nine percent of single family/duplex respondents and 22 percent of condominium/townhome respondents indicated that one or more residents of their household work within the Roaring Fork Valley (average 0.7 persons in single family homes/duplexes and 0.3 persons in condominiums/townhomes).  Total persons who work outside the Roaring Fork Valley: Twenty-five percent of single family house/duplex owners and 32 percent of condominium/townhome owners reported the presence of one or more persons who are employed outside the Roaring Fork Valley living in their household, with an average of 0.8 persons per household for each unit type. P56 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 49  Number of hours worked by residents employed in Roaring Fork Valley: Respondents who own single family homes/duplexes reported an average of 1,171 hours worked per year by members of their household in the Roaring Fork Valley (data includes households with no one employed in the valley). Condominium/townhome owners reported an average of 658 hours worked per year by members of their household in the Roaring Fork Valley. Among households with at least one Roaring Fork Valley worker, the average aggregate number of hours worked in the Roaring Fork Valley per year was similar among single family/duplex households (average 2,842 hours) and condominium/townhome households (average 2,727 hours). Figure 26 Who typically occupies your Aspen home when you are in residence? Source: 2014 Homeowner Survey; RRC Associates. P57 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 50 Figure 27 Number of Persons in Household – Total and by Age Source: 2014 Homeowner Survey; RRC Associates. P58 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 51 Figure 28 Number of Persons in Household – by Employment Characteristics Source: 2014 Homeowner Survey; RRC Associates. 69% 13% 15% 2% 61% 18% 19% 3% 75% 9% 6% 1% 2% 7% 82% 13% 5% 0% 78% 15% 7% 1% 68% 9% 11% 1% 6% 3% 0%20%40%60%80%100% 0 1 2 3 or more 0 1 2 3 or more 0 1 2 3 4 5 or more Percent of Respondents Single family / duplex Condominium or townhome TOTAL PERSONS WHO WORK FOR AN EMPLOYER OR OWN A BUSINESS LOCATED IN CITY OF ASPEN TOTAL PERSONS EMPLOYED IN ROARING FORK VALLEY SINGLE FAMILY/DUPLEX Average: 0.8 person; Median: 0 persons CONDO/TOWNHOME Average: 0.8 person; Median: 0 persons TOTAL PERSONS EMPLOYED OUTSIDE ROARING FORK VALLEY SINGLE FAMILY/DUPLEX Average: 0.5 person; Median: 0 persons CONDO/TOWNHOME Average: 0.2 person; Median: 0 persons SINGLE FAMILY/DUPLEX Average: 0.7 person; Median: 0 persons CONDO/TOWNHOME Average: 0.3 person; Median: 0 persons P59 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 52 Figure 29 Aggregate Number of Hours Worked by Household Members in Roaring Fork Valley Source: 2014 Homeowner Survey; RRC Associates. 59% 9% 3% 6% 7% 10% 2% 4% 76% 7% 2% 4% 3% 5% 1% 2% 0%20%40%60%80%100% 0 hr 1 - 999 hours 1000 - 1999 hours 2000 - 2999 hours 3000 - 3999 hours 4000 - 4999 hours 5000 - 5999 hours 6000+ hours Percent of Respondents Single family / duplex Condominium or townhome SINGLE FAMILY/DUPLEX Average: 1171 hours; Median: 0 hours CONDO/TOWNHOME Average: 658 hours; Median: 0 hours P60 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 53 Intended Future Use of Unit  How do you expect to be using your Aspen home five years from now? Overall, most single family house and duplex owners (55 percent) expect to use their unit as a primary residence in five years’ time. Smaller shares expect to use their home as a vacation home for the owner/guests (36 percent), to use the unit as a retirement residence (10 percent), to use the unit as a vacation rental to visitors (8 percent), to sell it (6 percent), or to rent long-term to a local resident (4 percent). About half of condominium and townhome owners said that they planned to use their unit as a vacation home for the owner/guests (53 percent). More modest shares plan to use the unit as the primary residence for the owner (25 percent) or as a vacation rental to visitors (22 percent), or plan to sell the unit (9 percent), retire in their Aspen residence (8 percent), or rent it out long- term to a local resident (8 percent).  Changes in personal/friend/family use over the next five years: A majority of single family home/duplex owners (61 percent) expected their use of the unit to stay the same over the next five years. Respondents were more likely to indicate that their use of the unit would increase (27 percent) than decrease (5 percent). Somewhat similarly, about half of condominium/townhome owners (53 percent) anticipated that their usage of the unit would stay the same over the next five years, while 31 percent felt it would increase and 4 percent indicated that it would decrease. P61 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 54 Figure 30 Intended Future Use of Unit Source: 2014 Homeowner Survey; RRC Associates. P62 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 55 Characteristics of and Expenditures on Home Operations and Upkeep Following is a summary of data pertaining to selected aspects of home operations and upkeep, including the types of service providers used by respondents and the services and homeowner expenditures associated with each type of provider.  Providers used for home operations and upkeep: Most single family home or duplex owners hire contractors/employees/specialty services (87 percent) or perform work themselves (78 percent). Roughly a quarter hire a property management company (27 percent) or belong to a homeowners association (21 percent), while 8 percent hire an on-site caretaker. Condominium and townhome owners primarily take care of home maintenance via a homeowners association (98 percent), as well as doing the work themselves (64 percent). Progressively smaller shares hire a property management company (57 percent), contractors/employees/specialty services (55 percent), or an on-site caretaker (11 percent). Figure 31 Providers Used for Home Operations and Upkeep Source: 2014 Homeowner Survey; RRC Associates. P63 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 56  Services delivered by respective providers: Figure 32 and Figure 33 to follow illustrate the services delivered by home service providers (in instances when the respondent uses the provider), for single family homes/duplexes and condominiums/townhomes respectively. Among single family house and duplex owners, contractors/employees/specialty services hired by the household are identified as providing the most types of services (average 4.6 services provided, among those using these services), followed by on-site caretakers (average 4.2 services), property management companies (average 4.1 services), and HOAs (2.3 services). As illustrated, different types of service providers tend to deliver different mixes of services. For example, HOAs are especially likely to provide single family home and duplex owners with operation/maintenance of community amenities; property management companies are comparatively likely to provide building maintenance and housekeeping/cleaning; and contractors/employees are especially likely to be hired for trash removal, lawn/landscape maintenance, systems/appliances repair, and security services. Among condominium and townhome owners, HOAs are reported by respondents to provide the most types of services (average 5.5 services provided, among those using HOAs), followed by property management companies (average 4.9 services), on-site caretakers (average 2.9 services), and contractors/employees/specialty services (average 2.5 services). Similar to single family homes, the services provided vary by provider type. HOAs are comparatively likely to provide snow removal, trash removal, building maintenance, lawn/landscape maintenance, and operation/maintenance of community amenities; property management companies are comparatively likely to provide security service, rental management, and housekeeping/cleaning; and contractors/employees/specialty services are comparatively likely to be hired for systems/appliances repair. P64 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 57 Figure 32 Home Maintenance and Upkeep Services Delivered by Providers – Single Family/Duplex (Base: Respondents Who Use Each Respective Provider) Source: 2014 Homeowner Survey; RRC Associates. P65 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 58 Figure 33 Home Maintenance and Upkeep Services Delivered by Providers – Condominium/Townhome (Base: Respondents Who Use Each Respective Provider) Source: 2014 Homeowner Survey; RRC Associates. P66 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 59  Annual expenditures on home service providers: Respondents were asked to estimate how much they spend annually on each of respective home service providers that they use. As illustrated in Table 12 below, annual HOA costs are considerably higher for condominium/ townhome owners (average $9,545 / median $6,800) than single-family homeowners (average $4,785 / median $2,100). For single family house and duplex homeowners, among those using property management companies, the average annual expenditure is $13,384 (median $10,000). The average annual expenditure for on-site caretakers is $29,722 (median $7,500), and the average annual expenditure for other contractors/employees is $11,994 (median $5,000). For condominium and townhome owners, the average annual expenditure for property management companies is $9,909 (median $5,250), the average annual expenditure for on-site caretakers is $4,555 (median $1,500) and the average annual expenditure for other contractors/employees is $3,173 (median $2,000). On average, among those using the respective service providers, condominium/townhouse owners spend more than single family/duplex owners on HOAs, while single family/duplex owners have higher expenses for property management companies, caretakers, and other contractors/employees. Table 12 Annual Expenditures on Home Service Providers (If Use Provider) Single family / duplex Condominium / townhome Annual Expenditures on Provider (If Use Provider) Mean Median Mean Median Amount spent on HOA $4,785 $2,100 $9,545 $6,800 Amount spent on property management company $13,384 $10,000 $9,909 $5,250 Amount spent on on-site caretaker $29,722 $7,500 $4,555 $1,500 Amount spent on other contractors/employees $11,994 $5,000 $3,173 $2,000 Source: 2014 Homeowner Survey; RRC Associates.  Caretaker housing: Among single family house and duplex owners with on-site caretakers, 33 percent provide free housing as part of their compensation, 42 percent offer discounted housing, and 25 percent do not provide housing assistance as part of compensation. Among condominium/townhouse owners, 27 percent provide free housing, 64 percent provide discounted housing and 9 percent don’t provide housing assistance.  Home maintenance and upkeep services delivered by self/household members: Single family house and duplex homeowners indicated that they provide their own service for an average of 3.7 services to their household. Condominium and townhome owners reported that they typically provide their own service an average of 2.0 services. Top self-provided services for single family houses/duplexes include building maintenance (64 percent), housekeeping/ cleaning (61 percent), lawn/landscape maintenance (57 percent), and snow removal (51 percent). Condominium/townhome owners reported as their top self-provided services P67 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 60 housekeeping/cleaning (72 percent) and systems/appliances repair (45 percent). Single family house and duplex owners estimated they spend an average of 221 hours a year on housework (median 150 hours), while condominium and townhome owners reported an average of 100 hours (median 50 hours), each inclusive of households not providing any self-service. Figure 34 Home Maintenance and Upkeep Services Delivered by Self/Household Members (Base: Respondents/Household Members Who Engage in Home Maintenance/Upkeep) Source: 2014 Homeowner Survey; RRC Associates. P68 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 61  Additional services obtained in your home: Respondents were asked to further identify any other services they obtain in the home, and specify whether the associated service providers are obtained locally or travel with their household. Single family/duplex owners are much more likely to obtain such services locally (27 percent in aggregate) than to have providers travel with their household (5 percent in aggregate). The most prevalent type of locally obtained service is chef/kitchen help/catering (used by 18 percent of respondents), followed by pet sitter (7 percent), child care provider/nanny (6 percent), and personal trainer (6 percent). The most prevalent type of service delivered by persons traveling with the household is childcare/nanny (3 percent), followed by chef (1 percent) and driver/pilot (1 percent). As shown in in Figure 36 on the following page, 15 percent of condominium/townhome owners obtain personal services locally and 1 percent have providers who travel with their household. The most common locally-obtained services are pet sitter (5 percent), child care provider/nanny (4 percent), and chef/kitchen help/catering (4 percent). Among those using the respective services, the annual amount spent on the respective services is summarized in Table 13 to follow. Among those procuring the respective services, the highest average amount spent is for drivers/pilots. Figure 35 Additional Services Obtained In the Home, by Where Service Is Obtained – Single Family/Duplex Source: 2014 Homeowner Survey; RRC Associates. 73% 18% 6% 7% 6% 2% 1% 1% 1% 95% 1% 3% 0% 1% 0% 0%20%40%60%80%100% None of these Chef/kitchen help/catering Child care provider/nanny Pet sitter Personal trainer Personal assistant Driver, pilot Other Concierge/butler Percent of Respondents Obtained locally Travels with my household P69 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 62 Figure 36 Additional Services Obtained In the Home, by Where Service Is Obtained – Condominium/Townhome Source: 2014 Homeowner Survey; RRC Associates. Table 13 Annual Expenditures on Other Services Obtained in the Home (If Obtain Service) Single family / duplex Condominium / townhome Annual Expenditures on Services (If Obtained) Mean Median Mean Median Chef / kitchen help / catering $4,982 $2,000 $10,323 $2,000 Child care provider / nanny $9,772 $2,000 $5,238 $1,000 Concierge / butler $5,000 $5,000 $4,500 $4,500 Personal assistant $16,375 $7,700 $20,367 $1,000 Personal trainer $6,544 $5,000 $13,171 $3,000 Driver, pilot $49,100 $55,000 $41,733 $5,000 Pet sitter $1,695 $1,000 $869 $800 Other $3,708 $2,250 $6,600 $2,000 Source: 2014 Homeowner Survey; RRC Associates.  Housing for employees: Six percent of single family house/duplex owners and 4 percent of condominium/townhome owners indicated that they provide living quarters for locally hired employees. Single family/duplex respondents provided housing for an average of 1.5 employees (median 1.0 employee), while condominium/townhome respondents housed an average of 3.8 employees (median 2.0 employees). 85% 5% 4% 4% 3% 3% 1% 1% 1% 99% 1% 1% 0% 0%20%40%60%80%100% None of these Pet sitter Child care provider/nanny Chef/kitchen help/catering Other Personal trainer Driver, pilot Concierge/butler Personal assistant Percent of Respondents Obtained locally Travels with my household P70 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 63 Housing for employees traveling with the household were slightly less prevalent at 4 percent of single family/duplex respondents and 3 percent of condominium/townhome respondents. The average number of employees housed was 1.1 employees for single family/duplex owners (median 1.0) and 1.2 employees for condominium/townhome owners (median 1.0). Figure 37 Housing Provided for Employees Source: 2014 Homeowner Survey; RRC Associates. 6% 94% 63% 31% 6% 4% 96% 90% 10% 4% 96% 36% 27% 36% 3% 97% 80% 20% 0%20%40%60%80%100% Yes No 1 2 3 or more Yes No 1 2 Percent of Respondents Single family / duplex Condominium or townhome DO YOU PROVIDE LIVING QUARTERS FOR EMPLOYEES HIRED LOCALLY? (If provide housing) HOW MANY DO YOU PROVIDE HOUSING FOR? DO YOU PROVIDE LIVING QUARTERS FOR EMPLOYEES BROUGHT WITH YOU? (If provide housing) HOW MANY DO YOU PROVIDE HOUSING FOR? SINGLE FAMILY/DUPLEX Average: 1.5 employees CONDOMINIUM/TOWNHOME Average: 3.8 employees SINGLE FAMILY/DUPLEX Average: 1.1 employees CONDOMINIUM/TOWNHOME Average: 1.2 employees P71 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 64 Appendix B: Homeowner Survey Results – by Occupancy This section of the report summarizes the results of the 2014 Aspen Homeowner Survey by occupancy status, i.e. units occupied by the owner at least 40 weeks per year vs. all other occupancies (i.e. owner occupancy less than 40 weeks per year, e.g. second homes, short- and long-term rentals, etc.). Results are limited to free-market units only. Respondent Housing Characteristics Following is a summary of key characteristics of Aspen housing units owned by respondents, particularly the physical characteristics of the units. Results are also illustrated in Figure 38 through Figure 48 to follow.  Unit type: Most owner-occupant respondents live in single family/duplex units (66 percent), with 31 percent living in condominiums/townhomes and 3 percent living in other unit types. By contrast, other occupancy groups are less likely to own a single family/duplex unit (32 percent), and more likely to own a condominium/townhouse unit (66 percent), with 2 percent owning other unit types.  Property location: The top location for owner-occupied units was the West End (26 percent), followed by East of Aspen (21 percent) and Cemetery Lane (21 percent). The leading location for non-local respondents was downtown (43 percent), followed by the West End (18 percent) and East of Aspen (14 percent).  Number of bedrooms: Owner-occupied residences had an average of 3.1 bedrooms. Most of these respondents reported having three bedrooms (29 percent) or four bedrooms (25 percent), while 15 percent have 0 – 1 bedrooms, 17 percent have two bedrooms, and 14 percent have five or more bedrooms. Respondents reporting other occupancies had an average of 2.9 bedrooms. The largest share have two bedrooms (28 percent) or three bedrooms (29 percent). Smaller shares reported having 0 – 1 bedrooms (15 percent), 4 bedrooms (15 percent), or five or more bedrooms (14 percent).  Presence and use of accessory units/homes located on property: Twelve percent of owner- occupants and 6 percent of other homeowners said that there was one or more separate, accessory units located on their property. Among owner-occupied units with accessory units, most reported the presence of one (73 percent) or two (23 percent) accessory units (average 1.4 units). Similarly, 65 percent of respondents in other occupancy groups with accessory units reported having one accessory unit, while 23 percent have two units and 12 percent have three or more, with an average of 1.7 accessory units. The most common uses of accessory units for owner-occupied homes include renting long-term to local residents (40 percent) and use by household/family members (30 percent). More modest shares reported use by visiting guests of the owner/household (20 percent), caretaker residence (7 percent), renting short-term to visitors (7 percent), and unit left vacant/unused (7 P72 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 65 percent). Among respondents reporting all other occupancies, the largest shares indicated that the units were rented to long-term local residents (39 percent) or used by visiting guests of the owner/household (35 percent). Less common uses include caretaker residence (26 percent), household/family member use (19 percent), and short-term rentals to visitors (10 percent).  Finished, unfinished, and total living space (including accessory residences, if applicable): Inhabitants of owner-occupied residences reported an average of 2,439 finished square feet in their home (median 2,250 square feet) and an average of 27 unfinished square feet. Respondents living in units with all other occupancy types reported an average of 2,222 finished square feet (median 1,400 square feet) and an average of 36 unfinished square feet. These figures include square footage in the primary residence plus any accessory residences on the property, if applicable. In aggregate, owner-occupants tend to have more total space (average 2,468 square feet, median 2,200 square feet) than units with other occupancies (average 2,244 square feet, median 1,425 square feet). In particular, owner-occupants were more likely to have residences of 2000-4999 sqft than other occupancy groups (51 percent vs. 29 percent). Conversely, non-owner-occupants were more likely than owner occupants to have small units under 1,500 sqft (51 percent vs. 34 percent, consistent with their greater ownership of condominium/townhome units), as well as large units in excess of 5,000 sqft (11 percent vs. 6 percent).  Garage space: Fifty-two percent of owner-occupied units and 44 percent of units with other occupancies have a garage or access to a common garage. Among owner-occupied units with garages, units had on average 1.7 stalls, with a majority of respondents reporting the presence of one (32 percent) or two (64 percent) parking stalls. Most units with other occupancies similarly had one (31 percent) or two (61 percent) parking stalls, with an average of 1.8 stalls.  Basement space: Basements were less common than garages—25 percent of owner-occupied units have a basement, either finished or unfinished, and 16 percent of other occupancy units do as well. Owner-occupants with basements reported an average basement size of 820 square feet with a median of 625 square feet. Among units with other types of occupancies, the average basement size was 1,051 square feet (median 950 square feet).  Lot size: Among local owners, 35 percent identified their property as a small residential lot (up to 6,000 square feet); 23 percent identified it as medium (6,000 – 15,000 square feet); and 11 percent identified it as large (more than 15,000 square feet), while 30 percent had a condo/townhome (lot size not asked/often not applicable). Approximately 17 percent of respondents in other occupancy households reported having a small lot, while 13 percent have a medium lot and 6 percent have a large lot, and 64 percent own a condo/townhome.  Year residence was built: Respondents reported a wide range of years that their home was built. The largest shares of respondents indicated that their residence was built during the 1960s (24 percent owner-occupied, 24 percent other occupancies) or 1970s (34 percent owner- occupied, 31 percent other occupancies). Consistent with the high shares of respondents reporting their house was built during these decades, the average year of building for owner- occupied residences was 1968 and the average year for other occupancy residences was 1975. P73 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 66  Year residence was purchased: Units with “other” occupancies were generally purchased somewhat more recently than owner-occupied units, with 53 percent and 42 percent respectively buying their residence between 2000 and today. Conversely, owner-occupants were somewhat more likely to have bought their unit in the 1970s, 80s or 90s (54 percent vs. 42 percent of non-owner-occupants). The largest shares of owners for both occupancy types bought their residence in the 2000 – 2009 decade (29 percent of owner-occupied units, 34 percent of other occupancy units). The average year of purchase for owner-occupied residences was 1997 (median 1997) and the average year of purchase for residences with other occupancy styles was 1996 (albeit a slightly more recent median of 2001).  Value of residence: Respondents who are owner-occupants reported an average residence value of $2,682,432 and a median of $2,000,000, with more than half valuing their homes at $2,000,000 or more (57 percent). Respondents who do not live in their homes full-time reported a generally similar average value of $2,631,210 and a lower median of $1,505,000. Among these respondents, 45 percent valued their home at $2,000,000 or more.  Recent remodels/renovations: Thirty percent of owner-occupied residences and 36 percent of units with other occupancies have been remodeled recently. Among owner-occupants who have renovated recently, about half (47 percent) renovated in 2010-14, and 50 percent renovated in 2000-09. The average remodeling expenses for owner-occupied units was $364,367, with a median of $100,000. Among owners of residences with other occupancies, 61 percent reported that their renovations occurred between 2010 and 2014, with an average cost of $271,036 and a median of $125,000.  Planned future remodels/renovations: Eight percent of owner-occupants and 10 percent of other owners expressed an intent to remodel soon. Among owner-occupants planning to remodel, all anticipated doing so in 2014 – 2016, and the average anticipated cost was $207,222 (median $40,000). Among other occupancy groups, 96 percent intended to remodel in 2014- 2016, with an average anticipated cost of $251,154 (median $100,000). P74 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 67 Figure 38 Unit Type Source: 2014 Homeowner Survey; RRC Associates. Figure 39 Residence Location Source: 2014 Homeowner Survey; RRC Associates. 51% 13% 18% 15% 2% 1% 0% 0% 24% 36% 30% 9% 1% 0% 0% 0% 0%10%20%30%40%50%60% Single-family house Condominium of townhome (21 or more units in complex) Condominium or townhome (20 or fewer units in complex) Duplex Mobile/modular home Other Triplex Timeshare/fractional unit Percent of Respondents Owner-occupied at least 40 weeks/year All other occupancies P75 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 68 Figure 40 Number of Bedrooms Source: 2014 Homeowner Survey; RRC Associates. P76 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 69 Figure 41 Accessory Units Source: 2014 Homeowner Survey; RRC Associates P77 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 70 Figure 42 Finished and Unfinished Heated Space (in square feet) Source: 2014 Homeowner Survey; RRC Associates 2% 16% 15% 9% 23% 19% 9% 6% 94% 3% 2% 4% 23% 23% 9% 13% 9% 6% 11% 94% 3% 3% 0%20%40%60%80%100% 1 - 499 sqft 500 - 999 sqft 1000 - 1499 sqft 1500 - 1999 sqft 2000 - 2999 sqft 3000 - 3999 sqft 4000 - 4999 sqft 5000+ sqft 0 sqft Under 500 sqft 500+ sqft Percent of Respondents Owner-occupied at least 40 weeks/year All other occupancies HEATED,FINISHED SQUARE FEET HEATED, UNFINISHED SQUARE FEET OWNER-OCCUPIED Average: 2,439 sqft; Median: 2,250 sqft OTHER OCCUPANCIES Average: 2,222 sqft; Median: 1,400 sqft OWNER-OCCUPIED Average: 27 sqft; Median: 0 sqft OTHER OCCUPANCIES Average: 36 sqft; Median: 0 sqft P78 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 71 Figure 43 Total Heated Space (in square feet) Source: 2014 Homeowner Survey; RRC Associates P79 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 72 Figure 44 Garage/Basement Size Source: 2014 Homeowner Survey; RRC Associates P80 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 73 Figure 45 Lot Size and Year Built/Purchased Source: 2014 Homeowner Survey; RRC Associates P81 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 74 Figure 46 Value of Residence Source: 2014 Homeowner Survey; RRC Associates P82 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 75 Figure 47 Remodeling Plans, and Details of Recent Past Remodel Source: 2014 Homeowner Survey; RRC Associates P83 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 76 Figure 48 Future Remodeling Plans Source: 2014 Homeowner Survey; RRC Associates Unit Usage Characteristics Table 14 to follow illustrates the average number of weeks homes are used for a variety of purposes across a 52-week year, both overall and segmented by occupancy type. It should be understood that the data on “average weeks of use” reflect net total weeks of use across a range of use types, not for a single use type. For example, long-term rentals to local residents account for a net annual average of 4.1 weeks of occupancy across all respondent homes, including homes that are not used for long-term rentals at all. With this understanding in mind, key findings by occupancy type include the following: P84 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 77  Owner-occupied residences: Among respondents in owner-occupied residences, homes are occupied as the primary residence of the owner an average of 98 percent of the year (51.0 weeks), and are vacant (and unavailable for vacation rental) 2 percent of the time (0.9 week), with an additional average of 0.1 week of use as a vacation rental.  Other occupancies: Among respondents in residences with other occupancy types, on average the residence is occupied as the primary residence of the owner 7 percent of the time (3.7 weeks) and is vacant (and unavailable for vacation rental) 44 percent of the year (22.7 weeks). Respondents reported that their units are also commonly used (or available for use) as a vacation rental (21 percent of the year), used as a vacation home for themselves or for their guests (15 percent), or rented long-term to a local resident (12 percent). Table 14 Average Annual Weeks of Use of Home24 OCCUPANCY TYPE OVERALL - ALL RESPONDENTS Owner-occupied 40+ weeks/year Other occupancies Type of Use # weeks % weeks # weeks % weeks # weeks % weeks Primary residence for owner 20.0 39% 51.0 98% 3.7 7% Vacation home for owner or guests of owner 5.1 10% 0.0 0% 7.7 15% Vacation rental - weeks actually occupied by visitors 3.9 7% 0.1 0% 5.9 11% Vacation rental - weeks avail. for rent, but not occupied 3.4 7% 0.0 0% 5.2 10% Rented long term to local resident 4.1 8% 0.0 0% 6.2 12% Business/corporate function 0.0 0% 0.0 0% 0.0 0% Other use 0.3 1% 0.0 0% 0.5 1% Vacant - not occupied (and not avail. for vacation rental) 15.2 29% 0.9 2% 22.7 44% TOTAL WEEKS 52.0 100% 52.0 100% 52.0 100% Source: 2014 Homeowner Survey; RRC Associates. 24 To clarify, the data on “average weeks of use” reflect net total weeks of use across a range of use types, not for a single u se type. For example, long-term rentals to local residents account for a net annual average of 4.1 weeks of occupancy across all respondent homes, including homes that are not used for long-term rentals at all. P85 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 78 Respondent Household/Demographic Characteristics Following is a summary of selected demographic characteristics of the households of respondents to the survey.  Who typically occupies your Aspen home when you are in residence? Almost all respondents in owner-occupied households indicated that they themselves (99 percent) occupy their unit while they are in residence, while 88 percent of respondents in other occupancy units reported this as well. Other common occupants in owner-occupied units include a spouse/partner (60 percent) and children (33 percent), followed by relatives/other family (11 percent), and friends (10 percent). Respondents in non-owner-occupied units also said their occupants frequently include a spouse/partner (72 percent), as well as children (54 percent), friends (45 percent), and relatives/other family (38 percent). Marginal shares of both occupancy types said they share their unit with housemates who rent rooms (3 percent of respondents in owner-occupied units and 1 percent of respondents in other occupancy units) or business associates (2 percent and 5 percent). Eight percent of other occupancy homes are not used for personal purposes.  Total persons who live/stay in your home while you are in residence: Owner-occupants said an average of 2.3 persons (including themselves) typically stay in their home when they are there. Other occupancy groups report a larger average of 3.8 persons in their unit while they are in residence.  Total persons under age 18 in the home: Twenty-nine percent of respondents living in owner- occupied units and 45 percent of respondents living in units with other occupancies indicated that children under age 18 typically live/stay in their home. Respondents in owner-occupied residences reported an average of 0.6 children under 18 in their homes, while respondents in other units reported an average of 1.2 children.  Total persons who are retired: Forty-two percent of respondents in owner-occupied residences and 58 percent of respondents in other occupancy residences reported that one or more retirees reside in their home. An average of 0.6 retirees live in owner-occupied units and an average of 1.1 retirees live in other units.  Total persons who work in Aspen: Over half (55 percent) of respondents in owner-occupied residences indicated that one or more Aspen workers live in their household (average 0.9 persons). Only 7 percent of owners who do not primarily occupy their homes reported the presence of Aspen employees in their unit (average 0.1 persons).  Total persons who work in the Roaring Fork Valley: Sixty-nine percent of owner-occupied units and 9 percent of units with other occupancies house one or more residents who work within the Roaring Fork Valley (average 1.1 persons in owner-occupied units and 0.1 persons in other units).  Total persons who work outside the Roaring Fork Valley: Eleven percent of residents in owner- occupied homes and 39 percent of residents in homes with other occupancy types indicated P86 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 79 that one or more people in their household is employed outside the Roaring Fork Valley, with an average of 0.2 persons in owner-occupied units and 1.2 persons in other units.  Number of hours worked by residents employed in Roaring Fork Valley: Owners who primarily occupy their residence reported an average of 1,903 hours worked per year by members of their household who are employed in the Roaring Fork Valley (data includes households with no one employed in the valley). Owners who do not primarily occupy their residence reported an average of 349 hours worked per year by household members employed in the Roaring Fork Valley (including households with no employees in the valley). Among households with at least one Roaring Fork Valley worker, the average aggregate number of hours worked in the Roaring Fork Valley per year by household members was somewhat higher among owner-occupied households (average 2,997 hours) than households with other occupancies (average 2,282 hours). Figure 49 Who typically occupies your Aspen home when you are in residence? Source: 2014 Homeowner Survey; RRC Associates. P87 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 80 Figure 50 Number of Persons in Household – Total and by Age Source: 2014 Homeowner Survey; RRC Associates. P88 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 81 Figure 51 Number of Persons in Household – by Employment Characteristics Source: 2014 Homeowner Survey; RRC Associates. P89 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 82 Figure 52 Aggregate Number of Hours Worked by Household Members in Roaring Fork Valley Source: 2014 Homeowner Survey; RRC Associates. P90 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 83 Intended Future Use of Unit  How do you expect to be using your Aspen home five years from now? A large majority of owners who are the primary occupants of their units (85 percent) expect to continue to use their unit as their primary residence in five years’ time. Significantly smaller shares expect to use their home as a retirement residence (10 percent), sell it (8 percent), use it as a vacation rental for visitors (4 percent), rent it long-term to a local resident (3 percent), or use it as a vacation home for the owners/guests (2 percent). Non-owner-occupants most commonly expressed plans to use the unit as a vacation home for themselves/guests (67 percent). Other expected uses for the unit in five years’ time include using it as a vacation rental to visitors (22 percent), using it as a primary residence for the owner (16 percent), using it as a retirement residence (9 percent), selling it (8 percent), or renting it long term to a local resident (7 percent).  Changes in personal/friend/family use over the next five years: A majority of respondents in owner-occupied residences (79 percent) expected their use of the unit to stay the same over the next five years. Six percent indicated that their use would increase, while 7 percent expect it to decrease. Respondents in units with other occupancies were considerably more likely to anticipate that their usage of the home would increase (41 percent), while an additional 45 percent believed their use would stay the same. Only 3 percent felt their use would decrease. P91 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 84 Figure 53 Intended Future Use of Unit Source: 2014 Homeowner Survey; RRC Associates. P92 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 85 Characteristics of and Expenditures on Home Operations and Upkeep Following is a summary of data pertaining to selected aspects of home operations and upkeep, including the types of service providers used by respondents and the services and homeowner expenditures associated with each type of provider.  Providers used for home operations and upkeep: Almost all respondents in owner-occupied households report that housework is taken care of by themselves or by family members (90 percent). Additionally, roughly three-quarters hire contractors/employees/specialty services (74 percent), while 45 percent belong to a homeowners association, and small shares hire a property management company (14 percent) or an on-site caretaker (4 percent). Owners in units with other occupancy types mainly take care of work through homeowners associations (73 percent), contractors/employees/specialty services (67 percent), doing it themselves (62 percent), or hiring a property management company (59 percent). An additional 13 percent indicated that they hire an on-site caretaker. Figure 54 Providers Used for Home Operations and Upkeep Source: 2014 Homeowner Survey; RRC Associates. P93 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 86  Services delivered by respective providers: Figure 55 and Figure 56 to follow illustrate the services delivered by home service providers (in instances when the respondent uses the provider), for owner-occupied and other occupancy residences respectively. Among inhabitants of owner-occupied units, property management companies hired by the household are identified as providing the most types of services (average 4.1 services, among those using these companies), followed by contractors/employees/specialty services (average 4.0 services), HOAs (average 3.8 services), and on-site caretakers (average 3.8 services). As is illustrated in the graph, different types of service providers tend to deliver different mixes of services. For example, HOAs are particularly likely to provide owner-occupied unit owners with trash removal; property management companies are comparatively likely to provide building maintenance and private swimming pool/hot tub maintenance; on-site caretakers are comparatively likely to provide snow removal, lawn/landscape maintenance, and housekeeping/cleaning; and contractors/employees are especially likely to be hired for systems/appliance repair and security services. Among owners with other residence occupancies, HOAs are reported to provide the most types of services (average 5.5 services provided, among those using HOAs), followed by property management companies (average 4.7 services), contractors/employees/specialty services (average 3.7 services), and on-site caretakers (average 3.2 services). Similar to owner-occupied homes, the services provided vary by provider type. HOAs are comparatively likely to provide snow removal, trash removal, lawn/landscape maintenance, building maintenance, and operation/maintenance of community amenities; property management companies most often provide rental management and housekeeping/cleaning; and contractors/employees/specialty services are comparatively likely to be hired for systems/appliances repair. P94 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 87 Figure 55 Home Maintenance and Upkeep Services Delivered by Providers – Owner-Occupied (Base: Respondents Who Use Each Respective Provider) Source: 2014 Homeowner Survey; RRC Associates. P95 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 88 Figure 56 Home Maintenance and Upkeep Services Delivered by Providers – Other Occupancies (Base: Respondents Who Use Each Respective Provider) Source: 2014 Homeowner Survey; RRC Associates. P96 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 89  Annual expenditures on home service providers: Respondents were asked to estimate how much they spend annually on each of respective home service providers that they use. As illustrated in Table 15 below, average annual provider costs are higher for residences with non- owner occupancies than those mainly occupied by owners. For owner-occupied residences, among those using HOAs, the average annual expenditure is $4,662 (median $4,000). The average annual expenditure for property management companies is $4,702 (median $3,044), the average annual expenditure for on-site caretakers is $8,800 (median $2,000), and the average annual expenditure for other contractors/employees is $7,941 (median $4,000). For owners with other occupancy situations, the average annual expenditure for HOAs is $10,191 (median $8,000), the average annual expenditure for property management companies is $11,397 (median $6,350), the average annual expenditure for on-site caretakers is $22,464 (median $5,000), and the average annual expenditure for other contractors/employees is $9,298 (median $3,000). Table 15 Annual Expenditures on Home Service Providers (If Use Provider) Owner-occupied 40+ weeks/year Other occupancies Annual Expenditures on Provider (If Use Provider) Mean Median Mean Median Amount spent on HOA $4,662 $4,000 $10,191 $8,000 Amount spent on property management company $4,702 $3,044 $11,397 $6,350 Amount spent on on-site caretaker $8,800 $2,000 $22,464 $5,000 Amount spent on other contractors/employees $7,941 $4,000 $9,298 $3,000 Source: 2014 Homeowner Survey; RRC Associates.  Caretaker housing: Among owner-occupied residences with on-site caretakers, 33 percent provide free housing as part of their compensation, 67 percent offer discounted housing, and 0 percent do not provide housing assistance as part of compensation. Among residences with other occupancies, 30 percent provide free housing to on-site caretakers, 50 percent provide discounted housing and 20 percent don’t provide housing assistance.  Home maintenance and upkeep services delivered by self/household members: Owners who primarily occupy their residences indicated that they provide their own service for an average of 3.5 types of tasks. Owners who are not the primary occupants reported that they provide their own service for an average of 2.4 tasks. Top self-provided services for owner-occupied units include housekeeping/cleaning (72 percent), building maintenance (56 percent), lawn/landscape maintenance (49 percent), and systems/appliance repair (45 percent). Respondents in units with other occupancies identified housekeeping/cleaning (63 percent) as their top self-provided service. Local owners estimated they spend an average of 230 hours on average per year on home tasks (median 178 hours), while other owners reported an average of 47 hours (median 10 hours), each inclusive of owners not providing any self-service. P97 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 90 Figure 57 Home Maintenance and Upkeep Services Delivered by Self/Household Members (Base: Respondents/Household Members Who Engage in Home Maintenance/Upkeep) Source: 2014 Homeowner Survey; RRC Associates. 72% 56% 49% 45% 38% 27% 24% 18% 9% 8% 3% 14% 9% 7% 21% 21% 7% 10% 11% 63% 29% 15% 35% 14% 29% 34% 13% 4% 1% 1% 47% 23% 9% 13% 5% 2% 1% 0% 0%20%40%60%80%100% Housekeeping/cleaning Building maintenance (interior and/or exterior) Lawn/landscape maintenance Systems/appliances repair (e.g., heating, plumbing, appliances) Snow removal Security service Rental management Trash removal Private swimming pool/Jacuzzi/hot tub maintenance Operation and maintenance of community amenities Other 0 hr 1 - 49 hr 50 - 99 hr 100 - 199 hr 200 - 299 hr 300 - 399 hr 400 - 499 hr 500+ hr Percent of Respondents Owner-occupied at least 40 weeks/year All other occupancies OWNER-OCCUPIED Average: 230 hr; Median: 178 hr OTHER OCCUPANCIES Average: 47 hr; Median: 10 hr SERVICES PROVIDED BY SELF/HOUSEHOLD MEMBERS (if provide at least 1 service) ANNUAL HOURS SPENT ON HOME TASKS (all respondents) P98 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 91  Additional services obtained in your home: Respondents were asked to further identify any other services they obtain in the home, and specify whether the associated service providers are obtained locally or travel with their household. The most prevalent of these services used by respondents in owner-occupied residences is a pet sitter (used by 10 percent of respondents), followed by chef/kitchen help/catering (7 percent), personal trainer (5 percent), and child care provider/nanny (5 percent). Respondents in owner-occupied households are significantly more likely to obtain these services locally (20 percent in aggregate) than to have providers travel with their household (0 percent in aggregate). Depicted in Figure 59 to follow, respondents in units with other occupancy types most frequently utilize a chef/kitchen help/catering (12 percent), child care provider/nanny (7 percent), pet sitter (4 percent), and personal trainer (4 percent). Like owner-occupants, other owners are more likely to obtain services locally (20 percent in aggregate) than to have the providers travel with their household (4 percent in aggregate). Among those using the respective services, the annual amount spent on the respective services is summarized in Table 16 to follow. Figure 58 Additional Services Obtained In the Home, by Where Service Is Obtained – Owner-Occupied Source: 2014 Homeowner Survey; RRC Associates. 80% 10% 7% 5% 5% 2% 1% 0% 0% 100% 0% 0%20%40%60%80%100% None of these Pet sitter Chef/kitchen help/catering Personal trainer Child care provider/nanny Other Personal assistant Driver, pilot Concierge/butler Percent of Respondents Obtained locally Travels with my household P99 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 92 Figure 59 Additional Services Obtained In the Home, by Where Service Is Obtained – Other Occupancies Source: 2014 Homeowner Survey; RRC Associates. Table 16 Annual Expenditures on Other Services Obtained in the Home (If Obtain Service) Owner-occupied 40+ weeks/year Other occupancies Annual Expenditures on Services (If Obtained) Mean Median Mean Median Chef / kitchen help / catering $1,893 $2,000 $7,257 $3,000 Child care provider / nanny $9,208 $2,550 $6,237 $1,000 Concierge / butler n/a n/a $4,750 $4,750 Personal assistant $7,700 $7,700 $22,240 $1,000 Personal trainer $9,450 $8,000 $7,700 $2,500 Driver, pilot n/a n/a $46,338 $32,500 Pet sitter $1,387 $1,000 $1,209 $400 Other $11,860 $2,400 $3,097 $2,000 Source: 2014 Homeowner Survey; RRC Associates.  Housing for employees: Four percent of respondents in owner-occupied households and five percent of respondents in households with other occupancies reported that they provide housing for locally hired employees. Among those providing employee housing, owner- occupied residences provided housing for an average of 1.6 employees, while other owners housed an average of 2.6 employees. 80% 12% 5% 4% 4% 3% 2% 2% 1% 96% 1% 2% 1% 0% 0% 0%20%40%60%80%100% None of these Chef/kitchen help/catering Child care provider/nanny Pet sitter Personal trainer Other Driver, pilot Personal assistant Concierge/butler Percent of Respondents Obtained locally Travels with my household P100 I. Aspen Residential Employment Generation Study March 4, 2015 RRC Associates 93 None of the owner-occupied households reported housing employees that travel with the household. For respondents in residences with other occupancies, 5 percent provided housing traveling employees, with an average of 1.1 employees housed. Figure 60 Housing Provided for Employees Source: 2014 Homeowner Survey; RRC Associates. 4% 96% 75% 13% 13% 0% 100% 0% 0% 5% 95% 48% 33% 19% 5% 95% 88% 13% 0%20%40%60%80%100% Yes No 1 2 3 or more Yes No 1 2 Percent of Respondents Owner-occupied at least 40 weeks/year All other occupancies DO YOU PROVIDE LIVING QUARTERS FOR EMPLOYEES HIRED LOCALLY? (If provide housing) HOW MANY DO YOU PROVIDE HOUSING FOR? DO YOU PROVIDE LIVING QUARTERS FOR EMPLOYEES BROUGHT WITH YOU? (If provide housing) HOW MANY DO YOU PROVIDE HOUSING FOR? OWNER-OCCUPIED Average: 1.6 employees OTHER OCCUPANCIES Average: 2.6 employees OTHER OCCUPANCIES Average: 1.1 employees P101 I. City of Aspen Real Estate Transfer Tax Analysis March 24, 2015 Andrew Ernemann, Broker Associate ASPEN SNOWMASS SOTHEBY’S INTERNATIONAL REALTY 415 East Hyman Avenue Aspen, CO 81611 970.379.8125 andrew@aspenupdate.com www.AspenUpdate.com Background Information The purpose of this analysis is to explore what the average Real Estate Transfer Tax (RETT) contribution is to affordable housing mitigation over the lifespan of a house/condo/townhome (i.e. homes) in the City of Aspen. Every time a property sells in the City limits a 1.0% transfer tax is imposed on the sale and that transfer tax is allocated toward an affordable housing fund (note that the first $100,000.00 of the sale price is excluded from the 1.0% transfer tax). For the purposes of ascertaining an appropriate measurement of the RETT contribution over the lifespan of a property it is assumed the average lifespan of all homes is 40 years. Although many homes are constructed to last longer than 40 years the nature of the Aspen market often lends itself to houses being demolished and replaced in shorter timeframes, the condo stock is more likely to last longer due to the ownership structure of condo buildings. The methodology used for the analysis was as follows: 1. Download the number of sales per year over the past nine years from the Aspen/Glenwood Multiple Listing Service (AGSMLS) and segment the sales by property type. It should be noted the field “Transfer Tax” was used to delineate sales within City of Aspen limits so there is some possibility for data mis-entry when pulling information from the AGSMLS. The data chart goes back to the year 2005 and it was clear there was incomplete data for that year in the AGSMLS so 2006 data is the first year used for the purposes of this analysis. 2. The County Assessor provided information about the total housing inventory within the City limits for each of the years analyzed. The number of sales for each property type in a particular year was divided into the total housing inventory for each property that year and the result was a snapshot of how long the average “hold period” was forecasted to be based on each year’s information. The 2006 through 2014 study period represents a strong real estate upcycle (2006-2008 – although the number of sales was declining during that time), subsequent severe drop in sales activity (2009) and then a steady buildup (2009-2014). 3. The average hold period for single family and for condo/townhomes was then calculated over the 2006-2014 timeframe. Interestingly the average hold time was approximately 28 years for both property types. While 28 years may seem to be longer than the timeframe one might expect for the average hold time in Aspen it’s hard to know if perhaps the AGSMLS data is incomplete or if the mix of properties held for 40-50+ years weighted the hold time to a longer duration than one might expect. 4. The total sales dollar volume for each property type and year during the analysis timeframe was then calculated from the AGSMLS. The total RETT was calculated based on the sales dollar volume information and an average RETT per transaction was then established. 5. The total number of square feet for each property type in a given year to sell was also downloaded from the AGSMLS, and the square feet figures were used to establish what the Exhibit B P102 I. City of Aspen Real Estate Transfer Tax Analysis March 24, 2015 Andrew Ernemann, Broker Associate ASPEN SNOWMASS SOTHEBY’S INTERNATIONAL REALTY 415 East Hyman Avenue Aspen, CO 81611 970.379.8125 andrew@aspenupdate.com www.AspenUpdate.com average RETT per square foot was for each property type. A blended average RETT of $11.03 per square foot was calculated for the study period. 6. Next the lifespan RETT contribution per square foot was calculated by dividing the average hold period of 28 years into the 40 year lifespan assumed for this study, and finally multiplied by the $11.03 per square foot blended average. 7. An FAR adjustment factor of 60% was divided into the $15.76 average lifespan RETT per square foot resulting in the final RETT per square foot number of $26.26 to be used final RETT contribution purposes. Note that the FAR adjustment factor is based on a prior study performed by RRC. 8. The typical structure size used in historic City studies has been 3,000 square feet. For consistency this number was used to determine a total RETT contribution of $78,775 over the 40 year life of a typical Aspen structure. 9. The number of employees mitigated during the typical lifespan of an Aspen home was calculated to be 0.33 employees (based on the midpoint of the current Category 2 and 3 mitigation rates). It should be noted that although it was necessary to make certain assumptions through the process, the final calculation would change only modestly with adjustments to most of the assumptions. P103 I. Aspen MLS Data Notes:Duplex is counted in Condo/Townhouse data (approx. 8-15 sales per year) This data captures only MLS sales - I'm guessing there's an additional 3-5% that takes place outside the MLS I used the field "transfer tax" in the MLS to segregate only City of Aspen sales (there are probably some sales left out and others added in by human error) 2005 seems to be very incomplete (it's probably that the transfer tax field wasn't implemented after 2005) Number of Sales 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average Single Family 3 50 50 41 36 39 38 46 37 44 42 Condo/Townhouse 4 162 169 83 69 83 102 122 130 118 115 Grand Total 7 212 219 124 105 122 140 168 167 162 158 SFH Inventory 1136 1170 1173 1166 1171 1170 1177 1165 1182 1168 # yrs hold 22.7 23.4 28.6 32.4 30.0 30.8 25.6 31.5 26.9 28.0 Condo/Duplex Inventory 2747 2781 2824 2894 2910 3216 2936 2925 2927 2907 # yrs hold 17.0 16.5 34.0 41.9 35.1 31.5 24.1 22.5 24.8 27.5 Sales Dollar Volume 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Single Family $7,100,000 $243,732,500 $300,857,000 $271,381,476 $204,267,711 $175,539,000 $230,849,500 $227,728,307 $166,849,300 $254,127,500 1.0% RETT $2,437,325 $3,008,570 $2,713,815 $2,042,677 $1,755,390 $2,308,495 $2,277,283 $1,668,493 $2,541,275 Adjust for $100K $2,387,325 $2,958,570 $2,672,815 $2,006,677 $1,716,390 $2,270,495 $2,231,283 $1,631,493 $2,497,275 Average RETT per Transaction $47,746.50 $59,171.40 $65,190.60 $55,741.03 $44,010.00 $59,749.87 $48,506.15 $44,094.41 $56,756.25 $53,441 Condo/Townhouse $3,521,000 $289,807,100 $315,535,825 $207,266,038 $142,547,126 $162,088,803 $207,254,537 $182,628,783 $228,501,563 $240,686,826 1.0% RETT $2,898,071 $3,155,358 $2,072,660 $1,425,471 $1,620,888 $2,072,545 $1,826,288 $2,285,016 $2,406,868 Adjust for $100K $2,736,071 $2,986,358 $1,989,660 $1,356,471 $1,537,888 $1,970,545 $1,704,288 $2,155,016 $2,288,868 Average RETT per Transaction $16,889.33 $17,670.76 $23,971.81 $19,659.00 $18,528.77 $19,319.07 $13,969.57 $16,577.04 $19,397.19 $18,443 Total Sq Ft 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Single Family 5,416 215,325 239,958 207,292 178,880 170,700 199,885 219,965 151,546 220,092 Condo/Townhouse 3,709 244,851 250,360 145,965 129,484 156,146 195,744 189,353 222,512 196,834 Grand Total 9,125 460,176 490,318 353,257 308,364 326,846 395,629 409,318 374,058 416,926 AVG SFH RETT $11.09 $12.33 $12.89 $11.22 $10.06 $11.36 $10.14 $10.77 $11.35 $11.24 AVG Condo RETT $11.17 $11.93 $13.63 $10.48 $9.85 $10.07 $9.00 $9.68 $11.63 $10.83 Blended AVG RETT $11.13 $12.12 $13.20 $10.91 $9.96 $10.72 $9.61 $10.12 $11.48 $11.03 Blended AVG RETT $11.03 Lifespan multiplier 1.43 Lifespan AVG RETT $15.76 FAR Adjustment (60%)$26.26 Typical structure size 3000 Total RETT contribution $78,775 Mid Cat 2/3 Mitig. Rate $239,914 # of Employees Mitig.0.33 P104 I. Review of Aspen Residential Employment Generation Study Dated March 4, 2015 Page 1 MEMORANDUM TO: Mayor and City Council FROM: APCHA Board of Directors THRU: Mike Kosdrosky, Executive Director Cindy Christensen, Operations Manager DATE: March 27, 2015 RE: REVIEW OF ASPEN RESIDENTIAL EMPLOYMENT GENERATION STUDY DATED MARCH 4, 2015 ISSUE: Mitigation fees are necessary to insure that all new employee generation development contributes its fair share to the housing of local residents. This creates a reduction of commuter traffic, creates a social investment within the community, and maintains vitality within our community. The Employee Generation Study was requested to provide an accurate employee housing impact fee that is necessary to satisfy the impacts of any type of residential development. This request is to provide comments on the study relating to employee generation for the development and redevelopment of single-family homes and duplexes. BACKGROUND: The Community Development Department requested and received a study to come up with a verifiable number to require employee housing mitigation for single-family homes and duplexes. The bottom line of the report shows that for 3,000 square feet of floor area for single-family/duplex homes, 0.445 FTE’s are created; for condominiums, 0.577 are created (page 34). The report also shows that the larger the home, the more employees are created. Section 2.470.060 of the Land Use Code requires the provision of affordable housing development of free-market single-family homes and duplex units. You will find attached to this memo Section 26.470.060 of the Aspen Land Use Code. The Aspen/Pitkin County Affordable Housing Guidelines require the mitigation for this type of development in the form of a fee-in-lieu as follows: Payment-In-Lieu Fee: Category 1 $295,077 Category 2 $246,881 Category 3 $232,946 Category 4 $144,393 The fee required for the construction of an exempt single-family home or duplex unit shall be calculated as follows: P105 I. Review of Aspen Residential Employment Generation Study Dated March 4, 2015 Page 2 Average of the Category 2 and Category 3 payment-in-lieu fees as specified above, divided by 3,000 square feet X the net increase in FAR of the new structure will equal the payment-in-lieu payment for replacement structures. The formula assumes that for every 3,000 square feet of new single- family or duplex floor area, the public will be required to provide housing for one moderate income employee. Currently, that amount is $246,881 + $232,946 ÷÷ ÷÷ 2 = $239,914 ÷÷ ÷÷ 3,000 = $79.97 per square foot of new structure. When any other payment-in-lieu fee is required and the category is not specified, an average of Category 2 and 3 will be used to calculate the amount owed. After reviewing the study, the Community Development Department has asked the Board to weigh in on the following issues: 1. Do you feel that the study sufficiently covers calculating how many employees are created by residential development? Were the right parameters used? Is the study lacking something that should have been taken into consideration? 2. Should there be some type of credit for the utilization of the Real Estate Transfer Tax (RETT)? 3. Should fee-in-lieu be allowed for mitigation purposes? 4. Should the Code still allow the use of providing an accessory dwelling unit (ADU) for mitigation purposes? 5. Should there be allowed exemptions and/or waivers for specific remodels/construction? Should there be an exemption of, say, the first 3,000 feet of proposed development/ redevelopment? Currently, an owner has the right to have the employee housing fees waived if providing proof to APCHA of working full-time in Pitkin County. DISCUSSION: After review of the document, APCHA has the following questions and concerns: 1. The study survey had a strong response rate of 24.9%, but there was no mention of margin of error. What is the study survey’s total margin of error? Also, what percent confidence level do we have in the study survey’s results? APCHA was not involved in developing the study survey and would like to better understand its methodology and the validity and reliability of the study survey’s results. 2. The study incorporates data as far back as 1999, 2000, 2001 and 2007. Is the data relevant to today’s market? 3. According to the study, the following employment types were excluded from consideration: • Public safety (e.g. police & fire) P106 I. Review of Aspen Residential Employment Generation Study Dated March 4, 2015 Page 3 • Construction support services (e.g. architecture, engineering, & planning) • Services related to purchasing and financing the home • Employment stemming from occupant purchases of retail goods and services at commercial establishments • Construction employment associated with residential alterations and remodels which don’t add floor area • Personal service for employees who travel with the household Should all or some of the employment types listed above have been included in the calculation to some extent? 4. Only new floor area is being taken into account. Currently, if a new owner decides to replace a 6,000 square foot home with another 6,000 square foot home, no mitigation is required. 5. The use of FAR in calculating the mitigation fee excludes certain areas of a home. Floor Area Ratio (FAR) is defined as “ the total floor area of all structures on a lot divided by the lot area .” Some of the items not included in FAR, and stated in the Land Use Code, are as follows: • Attic space and crawl space 5 feet 6 inches or less in height; • Decks, balconies, loggias, gazebos, trellis, exterior stairway, and non-street-facing porches; • Front porches on street-facing façade(s) of a structure developed within 30 inches of the finished ground level; • Patios developed at or within 6 inches of finished grade; • Garages and carports for all multi-family and mixed use buildings containing residential units, 250 square feet of the garage or carport shall be excluded; • Garages in the R-15B zone district containing a single-family, two single-family residences or duplex, an exemption of 500 square feet will be allowed; • Other zone districts, 250 square feet of garage space will be exempt; 250 to 500 square feet, 50% will be exempt. Areas above 500 square feet, no area excluded. • Certain portion of subgrade areas will not be counted. • Sheds, storage areas and similar accessory structures (greenhouses, similar uninhabitable accessory structures) not within a garage will be exempt from floor area up to a maximum exemption of 32 square feet per residence. • Wildlife-resistant trash and recycling enclosures are exempt. For mitigation purposes, should any type of construction be excluded when determining the FAR to establish the fee-in-lieu? 6. The utilization of information on condominiums is a concern. The specific fee-in-lieu in question pertains to the employee generation rate for single-family homes and duplexes. P107 I. Review of Aspen Residential Employment Generation Study Dated March 4, 2015 Page 4 7. What is the rationale behind a construction employee career length of 40 years? Is this an industry standard? Specifically, the study states that it takes an estimated 3.872 construction employee years to construct 1,000 SF of single family/duplex unit floor area. Based on the assumption of an average construction employee career length of 40-years, it takes 0.097 permanent construction employees per 1,000 SF built. 8. Why include average construction value per SF and home valuation? How is this relevant to the employment generation discussion? Does the methodology require it? Is this for a different discussion? 9. Is the methodology too complicated/confusing? Is it sound? RECOMMENDATION: The APCHA Board recommends or would like further clarification on the following: • The study appears to underestimate the number of actual employees generated by residential development. Are the results based on the study survey accurate, verifiable and reliable? • Is tying FAR to employee mitigation appropriate? • APCHA Board and staff strongly recommend against any type of credit relating to payment of the Real Estate Transfer Tax (RETT). • The APCHA Board still feels that there is a need to allow for fee-in-lieu for mitigation purposes, but only for mitigating fractional FTE’s. Fee-in-lieu should be available, but only as a last resort and at a premium. This should only be allowed once the fee-in-lieu is finally re-evaluated and more in line in matching what it takes to construct a unit. • Allowing accessory dwelling units (ADUs) has not provided the necessary mitigation that was originally intended when the Code was approved. APCHA highly recommends this form of mitigation be taken off the table, and that the City should create a simplified buy-out program in order to eliminate existing ADUs. • Regarding allowing exemptions and/or waivers for specific remodels/construction, APCHA believes that it is the responsibility of City Council to make that decision. o Currently, the Guidelines allow an owner the right to have the employee housing fees waived if documentation is provided to APCHA proving current employment in Pitkin County and the owner is utilizing the home as the primary residence. A document is recorded on the owner’s property that at such time the owner would sell to a non-working employee, the fee is paid and the document is released. • The entire section on condominiums should be removed from this study in terms of mitigation. No one builds one condo unit, they are all PUD’s. P108 I. Page 1 of 4 MEMORANDUM TO: Mayor and Council THROUGH: Barry Crook, Assistant City Manager FROM Mike Kosdrosky, APCHA Executive Director Chris Everson, Affordable Housing Project Manager DATE: March 27, 2015 MEETING DATE: March 31, 2015 RE: Fee-In-Lieu Mitigation Methodology REQUEST OF COUNCIL: Staff seeks Council direction regarding calculation of in-lieu fees for housing mitigation. PREVIOUS COUNCIL ACTION: At a work session with City Council on January 6, 2014, City Council decided to table discussion of in-lieu fees for housing mitigation until a study could be completed on employee generation of residential development. BACKGROUND: APCHA was directed to recommend a methodology to calculate fee-in-lieu (FIL) mitigation rates. A city fee-in-lieu mitigation option has long been in place as one of several available to offset the employee housing impacts that result from development or re- development of commercial and residential property. The current city FIL rate is thought to be so unrealistically low that it is, for all but fractional mitigation obligations, not an option the city customarily offers. The impact mitigation methods currently used by the City and County are distinctly different. The County doesn’t use a FIL method at all, but instead uses a development impact fee that it finds defensible. Neither fee is thought to generate a realistic amount of revenue to help offset the costs incurred to produce the additional employee housing needed as a result of the additional employees that are generated by most development. The City and County desire to use one method for both jurisdictions and directed staff to see if one method could satisfy their respective needs. In 2012, RRC Associates and Reese Consulting, Inc. proposed the market affordability gap methodology for FIL. Their report states that this method is the most commonly used approach for calculating FIL as a means for satisfying affordable housing mitigation requirements in Rocky Mountain communities. This memo compares the market affordability gap method to numerous additional methods. DISCUSSION: The task assigned to staff was not to establish a specific fee but to recommend a realistic, understandable, flexible, defensible, and easily updated method that could be used with confidence. A method which presents a range of fees that are empirically rational and which allows the elected officials of each jurisdiction to determine what development to apply the methodology against and what percentage of mitigation should be required. P109 II. Page 2 of 4 Methodologies considered include the following: 1) The current methodology in the APCHA Guidelines: Fee-in-Lieu was originally based on the subsidy it required to build an affordable housing unit minus the sales price for categories 1-4. Over the years, this calculation has changed to reflect the annual update based on 3% or CPI, whichever was less (not construction or land costs). Pros: Simple calculation; easy to update each year Cons: Yearly updates are not based on land/construction costs; people do not understand the calculation; numbers appear to be too low 2) The market affordability gap method as proposed by RRC/Rees in 2012: Fees are calculated based on the difference between the market price of housing and the price that is affordable for households with incomes in the targeted categories. This Market Affordability Gap method involves a step-by-step calculation utilizing County Assessor data (sales of condominiums and other improved residential properties) and median income figures published by the U.S. Department of Housing and Urban Development. Pros: Defensible; data available annually; accounts for cost-to-build versus cost-to-buy; APCHA can produce the annual update; currently used by numerous Rocky Mountain communities Cons: Yearly updates require more data manipulation and analysis; data is not simple to work with; numbers are very large and may be unpleasant to some 3) The market affordability gap method with staff-modified parameters: This method is the same as the market affordability gap method as proposed by RRC/Rees in 2012, except it replaces two parameters which were used by RRC and Rees Consulting. First, it assumes an average unit size of 850 SF per two employees rather than 900 SF which was used by RRC/Rees in 2012. The use of 850 SF per two employees is based on the standardized unit sizes which APCHA proposes to adopt. Second, it assumes 2.0 employees per unit rather than 1.6 employees per unit used by RRC/Rees in 2012. The use of 2.0 employees per unit is based directly on the occupancy standards currently in the APCHA Guidelines. Pros: Defensible; data available annually; accounts for cost-to-build versus cost-to-buy; APCHA can produce the annual update; currently used by numerous Rocky Mountain communities Cons: Yearly updates require more data manipulation and analysis; data is not simple to work with; numbers are very large and may be unpleasant to some 4) A new gap methodology which separates land cost from construction cost: P110 II. Page 3 of 4 This methodology would use assessor’s data for the purpose of establishing land cost and would use prevailing construction rates for the purpose of establishing construction cost. This method would have numerous components which would require updating each year, but could potentially help relieve some confusion about the effects of land cost on the calculation of the fee. Pros: Addresses land cost using assessor data; defensible Cons: Yearly updates require more data manipulation and analysis; data is not simple to work with; numbers are very large and may be unpleasant to some 5. Historical actual cost to develop: This method has proven to be difficult to update because data is not readily available each year, and APCHA cannot produce the annual update on its own and would require outside help. Often, there is confusion about what is included in the number versus what is not included in the number when obtaining historical cost information. Also, establishing which project data is directly applicable or not can be very challenging when there is limited data available. Pros: Defensible if done correctly Cons: Data not readily available each year; very difficult to update; may take weeks of work; requires numerous judgment calls; numbers based on very specific (small sample size of) projects; confusion about what's included in the number 6. Estimated future development cost: This method would entail commissioning of estimates on an annual basis, or other frequency, for some potential future affordable housing development(s). There would be costs associated with generating the estimates each year, or other frequency. Pros: Actually get a construction cost number Cons: What shall estimates be based on? Method appears unreliable, expensive, and subjective; could be subject to inaccuracies. 7. Remove cash in lieu as an option: Impacts of removing cash in lieu as an option would need to be discussed. Pros: Removes the burden of mitigation from the government Cons: Fewer options for developers P111 II. Page 4 of 4 RECOMMENDED ACTION: Staff recommends that the field of alternatives be narrowed to no more than two options for further analysis, or choose the methodology for approval. ALTERNATIVES: ATTACHMENTS: P112 II. TIA Guidelines update, 3.31.2015 Page 1 of 4 MEMORANDUM TO: Mayor Skadron and Aspen City Council FROM: Jessica Garrow, Long Range Planner Trish Aragon, PE, City Engineer Lynn Rumbaugh, Transportation Manager Jannette Whitcomb, Environmental Health Program Coordinator RE: Work Session: Transportation Impact Analysis Guidelines WORK SESSION DATE: March 31, 2015 REQUEST OF COUNCIL: The purpose of this work session is to provide an update of the City’s year-old transportation mitigation system (called the Transportation Impact Analysis, or TIA, Guidelines). Staff requests direction from Council on some proposed updates to the system, as well as direction on linking off-street parking requirements to the Transportation Impact Analysis Guidelines. PROJECT BACKGROUND: City Council approved a new system to ensure development mitigates its transportation impacts in April 2014. City Council was interested in ensuring fairness and consistency in the development process, particularly as it relates to transportation impacts. The old system was unpredictable because there were no clear guidelines. This resulted in transportation impacts being determined on an ad hoc case-by-case basis, rather than being based on adopted standards. The new TIA Guidelines created a clear and consistent system based on Aspen-specific trip generation data and mitigation measures specifically tailored to the Aspen area. The system requires actual physical or programmatic improvements related to trip impacts through Transportation Demand Management (TDM) 1 and Multi-Modal Level of Service (MMLOS) 2 improvements. The system is based on a set of Transportation Impact Analysis Guidelines, and an interactive excel-based tool that allows an applicant to plug their net increase in units and/or square footage and then select appropriate TDM and MMLOS mitigation measures. 1 Transportation Demand Management (TDM) refers to programs or services that maximize the use of alternative transportation, including buses, carpools, biking, walking, and carshare modes. TDM techniques include programs such as compressed workweeks, as well as outreach and education programs. Built alternatives such as Park and Rides, bike lanes, and bike racks that encourage alternative modes of transportation are also an important element of TDM programs. Finally, economic incentives and disincentives are part of the TDM tool-box, including things like parking cash-out programs where an employee trades the right to free parking at their workplace for a cash payment from the employer. 2 Level of Service (LOS) is a measurement that determines the effectiveness of transportation infrastructure. LOS A would refer to an area that has free-flow of traffic with almost no traffic. LOS F would refer to an area where the flow of traffic is backed up and frequent slowing occurs. Typical Level of Service figures only takes vehicle drivers into account. In recent years, Level of Service has expanded to include multiple modes, called Multi-Modal Level of Service (MMLOS). MMLOS takes all mode types – auto, bicycle, transit, walking - into account. P113 III. TIA Guidelines update, 3.31.2015 Page 2 of 4 Since its adoption, a number of land use projects have come through the system, including the Molly Gibson Hotel, the Sky Hotel, and the Base 1 Lodge. These projects have shown that the system is working to make the development review process more predictable for transportation related issues. It’s also revealed areas where the approved system can benefit from changes. PROPOSED TIA CHANGES: Based on feedback from planners, engineers, and others in the development community, staff has made a number of minor edits to the interactive tool. No action is required by City Council for these changes. In addition, staff wishes to make one clarification to the Guidelines, which will require Council action. One of the common comments from applicants using the tool was a request to more easily create the required narrative and project summary. The tool has been updated to automatically generate the required narrative. The applicant is required to provide detail on why particular mitigation measures were selected, but no longer needs to create a separate document, as it’s all contained within the tool. A number of changes were made to the Multi-Modal Level of Service (MMLOS) portion of the tool to clarify what is being requested and to remove options that were repetitive. This includes the removal of a measure that asked “Do changes to pedestrian access points preserve or enhance the pedestrian experience.” While this is an important metric, it was redundant with the measure that asks “Does the project propose enhanced pedestrian access points.” In addition, staff has added a section for “Additional Proposed Improvements” to enable project to implement mitigation measures that might be unique to a site. A number of projects have expressed interest in purchasing a We-Cycle station and providing a permanent location for it on their site. The original tool did not include a provision for this, so this new section provides a way for the site to receive points toward their mitigation requirements. Within the TIA Guidelines, staff recommends adding clarification language for which projects are exempt. The TIA requirements are based off of a net increase in commercial and essential public facility square footage and residential and lodge units, so projects that maintain or reduce the existing number of units and square footage do not generate new trips. This means they are not required to provide mitigation. Staff would like to add language to the TIA Guidelines to further clarify this requirement, as there has been some confusion from applicant as well as city staff administering the Guidelines. If City Council supports this clarification, staff will return during the April 13 th regular City Council meeting to implement it. PROPOSED OFF-STREET PARKING CHANGES: The Aspen Area Community Plan focuses on prioritizing alternative transportation modes over the automobile, stating that “our commitment to alternative modes of transportation helps reduce traffic congestion, improves air quality, reduces greenhouse gas emissions, promotes public health and reduces our dependence on non-renewable resources.” (pg 32) Staff is interested in hearing Council feedback on integrating the transportation mitigation requirements with the City’s parking standards. One of the goals of the TIA Guidelines is to reduce the number of vehicles in and out of town by providing improved pedestrian, bicycle, and transit facilities and programs on an individual site P114 III. TIA Guidelines update, 3.31.2015 Page 3 of 4 basis. With the TIA Guidelines in place, staff believes it is worth exploring commensurate decreases in off-street parking requirements. The City’s parking code requires a minimum number of parking spaces, meaning a new development is required to provide a base number of parking, but can optionally provide as much parking as they would like. Staff questions if unlimited parking associated with a development helps promote Aspen’s goals of reducing traffic, congestion, greenhouse gases, and improving air quality. In addition, the City’s minimum standards may be “over parking” some projects, further reducing unneeded traffic. Staff requests direction from City Council to explore changes to the City’s parking requirements. This would include exploring the following policies for implementation in Aspen: • Tie parking requirements to a project’s TIA – Allow new or existing projects to implement an “above and beyond TIA” in exchange for reducing the required number of parking spaces. • Lowering parking – Reduce the number of new parking spaces required of development projects. • Parking maximums - Placing a cap on the number of new parking spaces that can be added in association with development projects. • Transferable parking between sites - This is typically used in conjunction with Parking Maximums to allow flexibility between development sites. • Unbundling parking with approved land uses - Allow parking to be rented or sold separately from residential and commercial units. • Increase areas where cash-in-lieu for parking is allowed by right - Currently commercial development in the area inside the rivers, aka the Infill Area, can make a cash-in-lieu payment of $30,000 a space instead of having on-site parking spaces. This money goes to the Transportation Department for transportation improvements. • Allow shared parking - Allow sites to share parking facilities, thereby reducing the overall number of new parking spaces. Many of the policies listed above have been implemented in larger communities, including Portland, OR, Arlington County, VA, Seattle, WA, and Boulder, CO, as well as on college campuses such as UC-Berkeley. In keeping with its reputation for being on the cutting edge of transportation, parking and land use trends, Aspen would be one of the first small towns in the country to move toward better integrating improved bicycle, pedestrian, and transit facilities to reduced parking requirements. ENVIRONMENTAL IMPACT: Changes to parking requirements and a bolstering of TDM measures will have a significant long term impact on Aspen’s environment. Aspen was once a non-attainment air quality area, but after the implementation of paid parking and improvements to the transit system the City was able to dramatically improve air quality and is no longer in non-attainment. P115 III. pollution, improving air quality, and reducing greenhouse gas emissions. In addition, the proposed parking Sustainability Dashboard Measures, including: Castle Creek Bridge traffic counts, Ozone L (Energy Measure); Macro invertebrate population in R FINANCIAL IMPACT: Staff currently requests direction from Council to conduct additional research on updating the city’s parking requirements using exist funds. If staff conducts the work in house, it’s anticipated to take 12 require some budget monies to complete adequate public outreach Council supports this direction, staff would return in the fall with a more detailed scope of work and budget request. TIA Guidelines update, 3.31.2015 While the City has made great strides, there is more to do when it comes to cars and their impacts on the community, and staff believes the proposed parking changes are the requisite next ste community’s environmental goals . transportation sector represents Aspen’s largest and most challenging sector of greenhouse gas emission reductions (See 2011 Greenhouse Gas Emissions chart). While existing strategies like tr programs, bike lanes and paid parking have helped, these strategies alone are no longer adequate if the City wants to truly make strides in reducing pollution, improving air quality, and reducing greenhouse gas emissions. parking changes support a number of City Council's Environmental Sustainability Dashboard Measures, including: Levels of small particulate matter (PM traffic counts, Ozone L evels ( Air Quality Measures); Mass Macro invertebrate population in R ivers and Streams (water measure). Staff currently requests direction from Council to conduct additional research on updating the city’s parking requirements using exist ing staff resources, which does not require additional If staff conducts the work in house, it’s anticipated to take 12 – 18 months to complete adequate public outreach , as well as data collection Council supports this direction, staff would return in the fall with a more detailed scope of work TIA Guidelines update, 3.31.2015 Page 4 of 4 While the City has made great strides, there is more to do when it comes to cars and their impacts on the community, and staff believes the proposed parking are the requisite next ste p to realize the . At 40%, the transportation sector represents Aspen’s largest and most challenging sector of greenhouse gas emission reductions (See 2011 Greenhouse Gas Emissions chart). While existing strategies like tr ansit, carpool programs, bike lanes and paid parking have helped, these strategies alone are no longer adequate if the City wants to truly make strides in reducing Council's Environmental Levels of small particulate matter (PM 10 & PM 2.5 ) Air Quality Measures); Mass transit use (water measure). Staff currently requests direction from Council to conduct additional research on updating the ing staff resources, which does not require additional 18 months , and would , as well as data collection . If Council supports this direction, staff would return in the fall with a more detailed scope of work P116 III.