HomeMy WebLinkAboutPACKET Town Board Study Session 2022-02-08February 8, 2022
4:30 p.m. – 6:30 p.m.
5:30 p.m. -Dinner
The Town Board of Trustees will participate in the meeting remotely due to the Declaration of
Emergency signed by Town Administrator Machalek related to COVID-19 and provided for with
the adoption of Ordinance 04-20.
To view or listen to the Study Session by Zoom Webinar
ONLINE (Zoom Webinar): https://zoom.us/j/91077906778 Webinar ID: 910 7790 6778
CALL-IN (Telephone): 877-853-5257 (toll-free) Meeting ID: 910 7790 6778
If you are joining the Zoom meeting and are experiencing technical difficulties, staff will be
available by phone for assistance 30 minutes prior to the start of the meeting at 970-577-4777.
4:30 p.m. Update on Vacation Home Fee Study.
(Town Clerk Williamson)
5:00 p.m. Quarterly CompPAC Update. (Director Garner)
5:30 p.m. Community & Family Advisory Board Check-In. (Assistant Town
Administrator Damweber)
5:45 p.m. Revised Policy 225 Childcare Funding Guidelines. (Assistant
Town Administrator Damweber)
6:00 p.m. Art in Public Places.
(PAB Members & Board Discussion)
6:20 p.m. Trustee & Administrator Comments & Questions.
6:25 p.m. Future Study Session Agenda Items.
(Board Discussion)
6:30 p.m. Adjourn for Town Board Meeting.
Informal discussion among Trustees concerning agenda items or other Town matters may occur before this
meeting at approximately 4:00 p.m.
AGENDA
TOWN BOARD
STUDY SESSION
VIRTUAL
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Root Policy Research
6741 E Colfax Ave, Denver, CO 80220
www.rootpolicy.com
970.880.1415
Town of Estes Park
Vacation Home
Impact Study
PREPARED FOR: CREATED
Town of Estes Park 2/1/2022
INTRODUCTION
The object of the Estes Park Vacation Home Impact Study is to quantify the relationship
between the operation of homes in the Town as short-term rentals (STRs) and the cost and
availability of workforce housing. The study is founded on a rigorous methodology such
that the Town could base a fee on the results if desired.
The study begins with an overview of the historical housing market and economic trends in
Estes Park followed by an analysis of the Town’s STR market to provide context for the
impact analysis.
UPDATE ON VACATION HOME FEE STUDY
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SECTION I.
Demographic & Housing Market Context
This section offers an overview of socioeconomic trends and the housing market in Estes
Park to provide context for the impact analysis.
This would include shifts in housing stock, prices, and affordability; vacation/second home
trends; the number of short term rentals (along with market metrics for price, occupancy,
and characteristics of short term rentals), and socioeconomic trends (e.g., demographics,
resident incomes, industries, and wages). Key data sources for this analysis would include
US Census Bureau’s American Community Survey, Larimer County Assessor, Multiple List
Service; Multifamily Vacancy Survey; the Estes Valley Housing Authority subsidized housing
inventory; and MUNIRevs (STR database).
Demographic Profile
According to estimates from the Colorado Department of Local Affairs (DOLA), the
permanent resident population of Estes Park peaked in 2016 at 6,777 and has declined
slightly over the past few years to 6,208 in 2019 (the most recent year of data available).
Figure I-1 shows population trends by age in Estes Park. Seniors account for over one-third
of the permanent resident population (37%, up from 29% in 2010). The proportion of
middle age residents and children has declined over the past decade (from 28% middle age
to 20% and 16% children to 8%).
Figure I-1.
Population and Age
Source: DOLA and ACS.
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ROOT POLICY RESEARCH PAGE 2
Figure I-2 shows population trends alongside employment and commuting trends.
Although total Estes Park jobs has increased, the number of resident workers has
remained flat. In other words—worker growth is not keeping up with job growth,
particularly in the last few years. This means individual workers are taking on more jobs
and/or the number of jobs held by in-commuters increases. As shown in the table below
the figure the proportion of Estes Park jobs held by in-commuters has increased from 61%
in 2015 to 65% in 2019..
Figure I-2.
Jobs and Workers
Source: LEHD.
Housing Profile
Trends in the Estes Park housing market show rising rents and home prices, a rise in
homes used for seasonal/recreational use (which includes second homes and short term
rentals), and limited available inventory (for both rental and for-sale products).
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Estes Park Residents 5,865 6,015 6,219 6,276 6,412 6,658 6,777 6,490 6,412 6,208
All Estes Park Jobs 3,094 2,843 3,085 3,069 3,063 3,383 3,354 3,592 3,733 3,830
All Estes Park Resident Workers 2,291 2,204 2,321 2,276 2,374 2,721 2,673 2,711 2,761 2,668
Residents Living & Working in Estes 1,075 972 1,128 1,075 1,101 1,323 1,242 1,343 1,378 1,351
Jobs to workers Ratio 1.4 1.3 1.3 1.3 1.3 1.2 1.3 1.3 1.4 1.4
% Estes Park jobs held by in-
commuters 65% 66% 63% 65% 64% 61% 63% 63% 63% 65%
% of Estes Park working residents that
are out-commuters 53% 56% 51% 53% 54% 51% 54% 50% 50% 49%
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Figure I-3 shows the total housing units in Estes Park and reveals trends in occupancy over
the past decade. As illustrated, the total number of units has increased only slightly and the
composition of those units has shifted in recent year toward more seasonal use and fewer
resident occupied units. These trends may indicate a shortage of housing for workforce—
either due to price increases or competition from second home buyers and investors.
Figure I-3.
Housing Units and Occupancy
Source: DOLA and ACS.
Building permit activity has increased over the last couple years with notable activity in the
multifamily market. However, it isn’t clear from the permit data if these units will be
occupied by local workforce or if they are primarily marketed as second home condo
opportunities.
Figure I-4.
Building
Permits
Source:
Town of Estes Park.
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Average asking rent in Estes Park is about $1,845 per month (according to an analysis of
recent listings on apartment sites, including Craigslist). This reflects a 32% increase in
average rent since 2015, when the same analysis showed average rents at $1,395.
Figure I-5 shows the distribution of all rents (including those currently occupied and not on
the open market) in 2010, 2015, and 2019. As illustrated, rents have consistently shifted
upwards over the past decade.
Figure I-5.
Rental
Distribution
Note:
Average listed rent increased
32% between 2015 and 2021,
from $1,395 to $1,845.
Source:
Note from Craigslist data;
chart from ACS.
Figure I-6 shows trends in the for-sale price of homes and illustrates the drastic increase in
home prices over the past five years. The average sales price in Estes in 2021 was $677,000.
Figure I-6.
Average Sale Price
Source: Larimer County Assessor.
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SECTION II.
Short Term Rental Market
There are currently 480 registered short term rentals (STRs) in Estes Park: 322 in residential
zone districts and 158 in commercial districts. As shown in Figure II-1, STRs have increased
in both residential and commercial zone districts, particularly over the past six years.
Figure II-1.
Registered STRs by Zone, 2010-2021
Source: Town of Estes Park.
Data from AirDNA (an online aggregator of STR listings) shows similar increases in the
number of active STR listings in Estes Park over the past five years (regardless of
registration status), despite a slight dampening of activity during COVID (2020-2021).1
Figure II-2.
Active STR Listings
by Zone, 2017-2021
Note:
Active Commercial Listings
excludes listings in A
(Accommodation) Zone Districts
but includes A-1 zones.
Source:
AirDNA and Root Policy Research.
1 For the purposes of this analysis, “active” means a property listed on AirBNB, VRBO, or other HomeAway site at least
once per month in at least six months of a given year. The analysis focuses on “entire home” listings in order to exclude
residents who may rent out a room in their home on occasion.
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Figure II-3 show the geographic location of active STRs in Estes Park: yellow dots indicate
STRs in residential zone districts and red dots indicate commercially zoned STRs.
Figure II-3.
Active STRs, 2020-2021
Note: Includes all Commercially zoned STRs, even those in A (Accommodation zones).
Source: Town of Estes Park and Root Policy Research.
On average, Estes Park STRs have 2 bedrooms and 2 bathrooms with a guest capacity of six
people. The average daily rate is $328 per night. STRs in residential zones tend to be larger
on average than those in commercial zones and, as such, command higher average daily
rates than STRs in commercial zones.
Figure II-4.
Estes Park STR
Characteristics
Source:
AirDNA and Root Policy
Research.
The typical STR in Estes Park is rented 167 days per year and generates $53,684 in revenue
annually.
Bedrooms Bathrooms
Guest
Capacity
Average
Daily Rate
All Active STRs 2.2 1.9 6.1 $328
in Residential zones 2.7 2.1 6.7 $366
in Accommodation zones 1.8 1.9 5.9 $314
in Other Commercial zones 2.0 1.9 5.7 $315
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SECTION III.
Impact Analysis
The housing profile and STR market anlaysis presented in prior sections highlight recent
trends that reveal an increase in vacation home stock, declining permanent resident
occupancy, rising rents and home prices, and an increase in STR registration and activity in
Estes Park. This section uses a regression analysis to determine whether there is a causal
relationship between these trends. Specifically, the impact analysis is designed to isolate
and quantify the effect of STRs in Estes Park on the availability (and price) of housing for
the local resident workforce.
The methodology used to quantify STR impacts in Estes Park builds on the work of a
national, peer reviewed study published in 2021: “The Effect of Home-Sharing on House
Prices and Rents: Evidence from Airbnb.”2
This national study uses a dataset of Airbnb listings at the zip code level from the entire
United States merged with U.S. Census data to assess the impact of home-sharing on
residential house prices and rents, and the reallocation of homes from the long term rental
(LTR) to the short term rental (STR) market. The findings indicate that Airbnb has an
upward impact on house prices and rents: a 1% increase in Airbnb listings leads to a
0.018% increase in rents and a 0.026% increase in house prices. Formal statistical tests
show the Airbnb effect is driven by the reallocation of the housing supply and that the total
supply of housing is not affected by the entry of Airbnb, but that Airbnb listings decrease
the supply of long-term rental units. The econometric model built for the national study:
Controls for local demographic trends including changes in population, income,
employment and education—over time and across geographies.
Uses a fixed effects specification that controls for shocks to housing market conditions
that are common across geographies, as well as controlling for the average differences
across geographies in any unobservable amenities; and
Uses an instrumental variable (IV) approach that measures causal impacts of growth
in STR’s on different measures of housing supply.
In addition, the study reflects a national analysis, which is broadly applicable, and has the
credential of being published in a well-respected academic journal with extensive peer-
review vetting.
2 Barron, K., Kung, E., & Proserpio, D. (2021). The effect of home-sharing on house prices and rents: Evidence from
Airbnb. Marketing Science, 40(1), 23-47.
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Root Policy Research adapted the methodology developed for the national study to the
Estes Park context in two ways:
1. Applied the coefficients of the national regression analysis to Estes Park input data on
housing stock and tenure; and
2. Built a Colorado-specific regression analysis following the methodology and
econometric specifications of the national study using updated local datasets and
expanding the time period covered.3
Root also tested variations of the Colorado model to focus on results specific to areas with
an above-average share of tourism-driven economic activity. Construction of a regression
using only Estes Park data was not feasible due to the relatively small geography of the
Town.4 However, applying coefficients from both the national model and state model to
Estes Park data allows us to extrapolate a robust estimate of the local impact.
Model results. Figure III-1 shows the results of applying the coefficients of the national
and state models to Estes Park’s input data. The estimates shown measure the impact of a
1% increase in STRs on the overall supply and acute availability of specified housing types.
The figure shows the results of the IV model for the national analysis (which isolates the
causal impact of STRS). Results of the state model show both the baseline model (without
instrumental variables) and the IV model (which uses the instrumental variable to pinpoint
the causal impact). It is common practice to review both baseline and IV models when
replicating an analysis as the baseline model helps to confirm the underlying approach and
the precision of the model structure; however, the IV model reflects a more clear
representation of magnitude of the impact created by the presence of STRs.5
Note that the national model does not estimate the impacts on the owner stock; however
the estimates of on the rental stock and vacant homes are similar to enough to our
Colorado model, implying the owner stock coefficients are probably similar to what would
be estimated at the national level.
Price impacts derived from the national model (with Estes Park inputs) are also included,
though Root was not able to replicate the price impact in the Colorado with the data
available (price impacts require a separate monthly regression analysis but Root’s analysis
focused on replication of the national annual model).
3 The national study covers the years 2011 to 2016; the Colorado model covers the years 2011-2019.
4 The model specification uses ZIP code level panel data and since the majority of the Town is covered by a single ZIP
code, there simply aren’t enough observations to yield results.
5 Coefficient bias is reduced by the IV specification, although the estimates have larger standard errors which result in
lower statistical significance—a common statistical outcome of IV models.
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ROOT POLICY RESEARCH PAGE 9
Figure III-1. Model Results Applied to Estes Park: Supply Impacts of a 1%
Increase in Short Term Rentals in Estes Park
Note: * indicates statistically significant result. Coefficients applied to zip code 80517. National model covers years 2011 to 2016.
Colorado model restricts sample to Colorado only and extends the time period to 2019.
Source: Barron, K., Kung, E., & Proserpio, D. (2021). The effect of home-sharing on house prices and rents: Evidence from Airbnb.
Marketing Science, 40(1), 23-47, AirDNA, U.S. Census, Google Trends, and Root Policy Research.
Results presented in the Figure can be interpreted as follows:
According to the general model, a doubling in the number of STR’s decreases the
rental stock by approximately 1.4%; according to the estimates produced by the
Colorado model a doubling in the number of STR’s can decrease the rental stock by as
little as 1.9% and as much as 2.8%.
On the ownership market, according to the estimates produced by the Colorado
model doubling the number of STR’s decreases the ownership stock by as little as 1.1%
and as much as 2.2%. (The general model does not estimate the impacts on the owner
stock; however the estimates of on the rental stock and vacant homes are similar to
enough to our Colorado model, implying the owner stock coefficients are probably
similar to what would be estimated at the national level).
An increase in STR’s leads to a tighter rental market with lower vacancies. In the
general model, a doubling in the number of STR’s decreases the number of vacant
units for rent by 2.9% and in the Colorado model, a doubling of the number of STR’s
can decrease the number of vacant units for rent by 2.2% and up to 5.7%.
In the general model, a doubling in the number of STR’s increases the number of
vacant units for seasonal and recreational purposes by 7%, while in the Colorado
model the impact ranges from a 7% to a 15.7% increase in vacant units for seasonal
and recreational purposes.
Due to the significant reduction in the sample size from the national to the state level,
several of the coefficients in the state model are not statistically significant. However, the
Supply Impacts
Rental Stock -0.0138%*-0.0195%*-0.0285%-0.0413%
Owners Stock n/a -0.0108%*-0.0223%
Vacancy Impacts
Vacant for Rent -0.0291%*-0.0225%-0.0570%-0.2240%
Vacant for Seasonal Use 0.0705% * 0.0750% * 0.1572% *
Price Impact
Rents 0.0290% *
Home Price 0.0470% *
high error
high error
not quantifiable with current data
not quantifiable with current data
National Colorado Model
General Model
(IV)
Baseline
Model
Baseline with Causal
Instrument (IV)
Above-Average
Tourism (IV)
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ROOT POLICY RESEARCH PAGE 10
fact that in general the magnitude and direction of the coefficients are in line with the
findings of the academic paper provide evidence that the model is well specified but lacks
statistical power due to the reduction in the number of observations. The Colorado
coefficients from the baseline models on the rental stock, ownership stock, and seasonal
vacancies, are statistically significant, as well as the IV estimate for seasonal vacancies.
The number of observations is further reduced when we restrict the sample to zip codes
with more tourism driven economies6 which makes the variables more prone to
measurement error and the estimates more imprecise.
Summary of STR impacts. The model output above highlights the housing market
impacts caused directly by the home sharing economy. Home sharing can create a
reallocation of the rental stock from the long-term rental to the short term rental market.
This can increase rental rates and house prices, decrease vacancy rates in the long-term
market, and create a tighter market for long-term renters.
Figure III-2 summarizes the direct impact of STRs in Estes Park on the supply of workforce
housing (both rental and owner) by converting the percentage impacts identified in the
model into unit-level impacts based on current STR and market data for Estes Park. Results
are presented in a range of impacts where the national model (with Estes Park inputs)
reflects a lower bound.
Figure III-2. Direct Impact of Estes Park STRs on Workforce Housing
Source: Barron, K., Kung, E., & Proserpio, D. (2021). The effect of home-sharing on house prices and rents: Evidence from Airbnb.
Marketing Science, 40(1), 23-47, AirDNA, U.S. Census, Google Trends, and Root Policy Research.
Every 100 STRs in Estes Park leads to a loss of 3-9 rental units and 4-9 ownership units that
would otherwise be occupied by local residents (total resident housing loss of 7-18 units).
In addition, every 100 STRs in Estes Park result in an $11 increase in monthly rent of
resident units and a $6,500 increase in home prices.
6 Measured as those that have an above median share of business establishments that belong to the accommodation
and food services industry in 2010.
National
Model (IV)
Colroado
Model (IV)
Colorado Tourist
Model (IV)
Units Lost from Rental stock per 100 STRs 3.0 units 6.2 units 9.0 units
Units Lost from Owner stock per 100 STRs 4.1 units 8.6 units n/a
Monthly Rent increase (among LTRs) per 100 STRs $11 n/a n/a
Home Price increase per 100 STRs $6,499 n/a n/a
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QUARTERLY CompPAC UPDATE
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TOWN ADMINISTRATOR’S OFFICE Report
To: Honorable Mayor Koenig
Board of Trustees
Through: Town Administrator Machalek
From: Jason Damweber, Staff Liaison to the Community and Family Advisory
Board Chair
Date: February 8, 2022
RE: Community and Family Advisory Board Check-In
Purpose of Study Session Item:
The purpose of this Study Session is to provide the Town Board with an opportunity to
follow up on its November discussion regarding the Community and Family Advisory
Board (CFAB).
Town Board Direction Requested:
Staff requests direction from the Town Board regarding next steps pertaining to the
CFAB.
Present Situation:
At a Study Session held on November 9, 2021, the Town Board discussed some
ongoing issues related to the CFAB. Trustee Younglund and Mayor Pro Temp
Martchink were appointed by the Town Board at the conclusion of the discussion to
work with the CFAB and Assistant Town Administrator Damweber on recommendations
for next steps. Since the November 9 Study Session, the CFAB, acknowledging that
there were areas for improvement, developed a set of recommendations related to
organizational and structural changes for consideration by Trustee Younglund and
Mayor Pro Tem Martchink. These recommendations were conveyed in a memo titled
“Proposals for Refocusing the Community and Family Advisory Board.”
Trustee Younglund and Mayor Pro Tem Martchink met to discuss the recommendations
put forth by the CFAB. They believe that the changes ”refocusing” proposed will lead to
desired improvements with respect to the way the CFAB is organized and operates and
with respect to how the CFAB communicates with the Board.
Two recommendations that will need to be addressed though Board action in the
Bylaws include: 1) revisions to the role of the group as stated in the attached
recommendations; and 2) reverting the name of the CFAB back to “Family Advisory
Board.” Additionally, Trustee Younglund and Mayor Pro Temp Martchink recommend
postponing future CFAB meetings temporarily (mainly because there are not enough
members currently to hold official meetings), opening up the application process for new
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CFAB members and making appointments, then allowing the CFAB to resume meetings
and completing the “refocusing” work outlined in the CFAB memo.
Proposal:
That the Town Board review the CFAB’s recommendations, hear from Trustee
Younglund and Mayor Pro Tem Martchink regarding their thoughts and
recommendations, and provide direction to staff regarding any action that needs to be
taken, including revision of the Bylaws as proposed.
Advantages:
N/A
Disadvantages:
N/A
Financial/Resource Impact:
N/A
Level of Public Interest:
Medium
Attachment:
1.CFAB Memo: “Proposals for Refocusing the Community and Family Advisory Board”
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MEMO
TO: Trustee Cindy Youngland, Mayor Pro-tem Patrick Martchink; Assistant Town
Manager Jason Damweber
FROM: Members of the Community and Family Advisory Board
RE: Proposals for Refocusing the Community and Family Advisory Board
Following the January 6, 2022, meeting of members of the Community and Family Advisory Board
along with Trustee Cindy Youngland and Assistant Town Manager Jason Damweber, the following
recommendations are proposed to the Estes Park Town Board regarding CFAB.
The CFAB members present for the meeting were: Laurie Dale Marshall, Chair; Nancy Almond,
Vice-Chair, Patti Brown, Christy DeLorme; and Sue Strom.
John Bryant was not able to attend, and Chris Douglas has decided to step off the board.
The role of the Community and Family Advisory Board
For purposes of clarity and direction, the CFAB members recommend that the bylaws of the
advisory board be modified from the currently stated ones
x Research and summarize factual data on issues of importance to families in the Estes Valley,
x Develop recommended policies that align with the Town Board Strategic Plan to address
these issues, and
x Present these recommendations to the Town Board and/or Town staff
to:
x Research, review, and summarize data on issues, challenges, needs, service gaps, and barriers
to services facing families in the Estes Valley.
x Discuss, prioritize, and summarize information to share with Estes Park Town Board, and
present policy recommendations that align with or inform the Town Board’s Strategic Plan.
x Provide the perspective of families on current projects and plans of the Town Board and
deliver informed and timely responses to Town Board for information as requested.
Name of Board
The CFAB member recommend that the name of the advisory board be returned to its original
name, Family Advisory Board. The reason is to place emphasis on the family as an important social
unit.
The CFAB members would like to adopt an operational definition of the term family to provide
focus to its activities while recognizing the difficulty in in doing so because families come in so many
different shapes and sizes. The following is proposed as the advisory board’s adopted definition of
family:
ATTACHMENT 1
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In our society the definition of “family” has changed from what was once considered a
“traditional family” to various household configurations of two or more people who share a
bond of marriage, blood, or commitment. The Family Advisory Board recognizes that the
ages of individuals within a family unit may range from infants, children, teens, adults,
seniors, to the elderly. These differing household groups have various needs and concerns,
yet they share the common thread of being a household unit under the broad umbrella of
“family.”
Board Membership
The membership of the Family Advisory Board should include representatives from key family-
serving organizations across the community, as well as members-at-large who represent the voice
and perspective of diverse families. As board members are intentionally recruited, the following
organizations should be consulted to identify individuals to sit on the FAB.
x Estes Park Schools
x Estes Park School Board
x Estes Valley Recreation and Park District Board
x Estes Valley Investment in Childhood Success Family Resource Center
x Crossroads Ministry
x Estes Park Health and/or Salud
x Estes Park Housing Authority
x Restorative Justice
x Law Enforcement
x Estes Valley Crisis Advocates
x Partners Mentoring Youth
x SummitStone
x Organizations that receive their base-funding or grant money from the town of Estes Park.
x Business community/Estes Chamber of Commerce
Expectations and Initiatives of the Family Advisory Board
x As an advisory board, the Family Advisory Board is tasked with monitoring issues of
importance to families in Estes Park and to bring that information to the Town Board.
x FAB is charged with providing quarterly written reports and as needed in-person
presentations to Town Board on matters of concern regarding families.
x The FAB will make policy recommendations to the Town Board concerning issues related to
families.
x The FAB will review the proposed Town’s Strategic Plan and make recommendations to the
Town Board to ensure that the needs and concerns of families are reflected in the plan.
x The FAB meets a minimum of 10 times per year, monthly, with the option of no meeting in
July and December.
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x Annually, CFAB will review and update the Community Resource List provided on Town’s
website in partnership with local nonprofit organization to ensure that it is remains an
important resource of information for family-based services.
Additional Goals for the FAB in 2022
x The FAB will develop a mission statement to further provide clarity and direction about the
purpose of the advisory board.
x The FAB will develop a board member on-boarding resource guide explaining roles and
time commitments.
x The FAB will develop an annual calendar that will provide structure to its meetings. The
annual calendar will consider the timing of the town’s strategic planning and budget process,
and also key dates and events related to the network of family-service organizations.
x The FAB will maintain a list of key areas of focus, revisiting the list quarterly to adapt and
refine it as necessary.
x The FAB will provide feedback to the Town Board and Staff in producing and/or reviewing
the annual community services survey.
x The FAB will provide feedback to the Town Board and Staff in the selection of community
organizations and programs that provide services to families and that receive their base
funding from the town.
x The FAB will develop a communications plan to keep the community advised of its purpose
and its activities.
x The FAB will network throughout the year with family-service organizations to keep abreast
of the pulse of family concerns in the Estes Park community, and to keep the various
community programs and organizations aware of the purpose and work of FAB.
Proposed Agenda for FAB Meetings: (1.5 hours)
x Welcome/Updates/Announcements from FAB Chair
x Introductions and updates from members - roundtable
x Report and updates from Staff Liaison
x Report and requests from TB Liaison
x Action items:
o Minimum of one action item will be addressed at each meeting. Action items will be
selected by FAB officers prior to the meeting and will directly align with FAB
mission/vision statement.
o This portion of the meeting may include a presentation on new or updated info, a
guest speaker, presentation from member organization, or discussion/response to a
request brought to FAB by the trustee liaison or assistant town manager.
x Old/New Business – a time for members to ask questions, follow-up on prior business, or
suggest new items of business for consideration.
x Prepare for quarterly presentation to Town Board.
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TOWN ADMINISTRATOR’S OFFICE Report
To: Honorable Mayor Koenig
Board of Trustees
Through: Town Administrator Machalek
From: Jason Damweber, Assistant Town Administrator
Date: February 8, 2022
RE: Revised Policy 225: Childcare Funding Guidelines
Purpose of Study Session Item:
The purpose of this Study Session is to provide the Town Board with an opportunity to
discuss proposed revisions to Administration Policy 225: Childcare Funding Guidelines.
The major revisions proposed include clarification regarding the Town’s role with
respect to childcare, the establishment of a Childcare Reserve Fund, and an
explanation of how funds in the reserve can be used.
Town Board Direction Requested:
Staff requests direction from the Town Board regarding the attached policy, which will
be further revised as requested and brought back for consideration as an action item at
a future Town Board meeting.
Present Situation:
The Town Board’s 2020 Strategic Plan included a Board Objective to “develop a
childcare funding policy.” This objective was informed by the June 2019 Final Report of
the Workforce Housing and Childcare Task Force, which states that “the lack of
availability of infant and toddler care in the Estes Valley is at a crisis level and has been
getting worse for several years.” Another related Board Objective was to “establish a
capital grant pool to incentivize new infant/toddler childcare capacity.”
The Town Board took action in 2020 and approved Administration Policy 225: Childcare
Funding Guidelines. The policy defines qualification and evaluation criteria to be used
when reviewing requests for Town funds for childcare related purposes. It also states
that:
On an annual basis, the Town Board may appropriate funds in order to provide financial
support for endeavors aimed at increasing the capacity for childcare. Such
appropriations may be in the form of contributions to a reserve fund earmarked for
capital or other expenditures related to childcare, funds budgeted annually in a Capital
Grant Pool to assist with capital needs for new facilities or improvements to existing
facilities that would enable growth in capacity, and/or funds budgeted annually in the
General Fund that are dedicated to increasing childcare capacity.
Page 29
However, the existing policy does not go as far as establishing the reserve it references.
This was the primary driver for the revisions being proposed to the policy. As noted
above, in addition to clarifying the Town’s role with respect to childcare, the revised
policy establishes a Childcare Reserve and explains how funds in the reserve can be
used.
Proposal:
That the Town Board discuss the updated policy and provide direction to staff regarding
any further revisions it would like to act on at a future Board meeting. Additionally, it
would be helpful to know whether the Town Board is interested in a budget amendment
later this year, assuming the Childcare Reserve is created, that allocates funds to the
reserve.
Advantages:
1. The revised policy establishes a reserve fund dedicated to providing funding to
increase capacity for childcare locally.
Disadvantages:
N/A
Financial/Resource Impact:
To be determined.
Level of Public Interest:
Medium.
Attachment(s):
1. Revised Administrative Policy 225: Childcare Funding Guidelines
Page 30
Document Title Policy 225 – Childcare Reserve Fund XX/XX/2022
Revisions: 1 Town of Estes Park, Town Administrator’s Office Page 1 of 4
Effective Period: Until superseded
Review Schedule: Annually
Effective Date: October 13, 2020; Revised XXXX, 2022
References:
ADMINISTRATION
225
CHILDCARE FUNDING GUIDELINES
1. PURPOSE
This policy articulates the Town’s role related to childcare, establishes a funding
mechanism to address local childcare needs, and provides guidelines for how available
funds shall be awarded.
2. PROBLEM STATEMENT
The lack of availability of infant and toddler care in the Estes Valley has been
characterized as a crisis. The lack of childcare options creates significant challenges for
families in the Estes Valley and for local organizations, including the Town, trying to recruit
and retain employees.
3. PROCEDURE
a. The Town’s Role
The Town’s primary goal related to childcare is to create additional capacity for
children in the Estes Valley, especially for infants and toddlers, by:
Providing funding that childcare providers can utilize for capital needs through:
o Direct contributions from the Town’s budget (the Childcare Reserve Fund).
o Serving as the applicant for grants or other financial assistance from other
levels of government or agencies where the grantee must be a
governmental entity.
Providing property that childcare providers can utilize for capital needs that
facilitate the creation of additional capacity for childcare.
Making policy and/or zoning changes that facilitate the creation of additional
capacity for childcare.
Providing financial support through the Town’s Outside Entity Funding program
to local nonprofits that exist to support children and families.
Representing the Town of Estes Park in collaborative efforts to address childcare
capacity issues.
ATTACHMENT 1
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Document Title Policy 225 – Childcare Reserve Fund XX/XX/2022
Revisions: 1 Town of Estes Park, Town Administrator’s Office Page 2 of 4
b. Childcare Reserve
i. Establishment: There shall be a reserve within the General Fund dedicated to
creating additional capacity for children, especially infants and toddlers, in the
Estes Valley.
ii. Appropriations to the Childcare Reserve: On an annual basis as part of the
budget development process, Town staff will identify the dollar amount of sales
tax revenue expected to be received in excess of 105% of sales tax revenue
originally budgeted for the fiscal year (if applicable). The Board will consider
appropriating all or a portion of these excess revenues to the Childcare Reserve
within the General Fund. This consideration will occur concurrently with the
Board’s consideration of appropriations to the Workforce Housing Reserve. The
Town Board may appropriate funds to the Childcare Reserve whenever and in
whatever amount it deems appropriate.
a) Other Revenues: In addition to the appropriations outlined above, other
revenue sources for the Childcare Reserve may include donations, proceeds
from the sale or lease of public property, and grants or other financial
assistance related to childcare related activities.
iii. Qualification/Eligibility Criteria for Funding from Childcare Reserve
a) Entities or individuals receiving Town funds for childcare related purposes
must:
Be a childcare provider that provides or intends to provide year-round
childcare for at least four children between the ages of 0 and 4 who are
unrelated to the caregiver OR an in-home provider who provides year-
round care for at least three children between the ages of 0 and 4 who
are unrelated to the caregiver.
Own or lease a facility or home (or demonstrate intent to own or lease
a facility or home) located within the Estes Park School District R-3
where childcare services are provided or will be provided after capital
improvements are made.
Be in compliance with applicable state and local health and safety
requirements.
b) Among entities or individuals who meet the qualification criteria outlined
above, although the Town reserves the right to make any funding decisions it
is entitled to, priority/preference will be given to applicants who:
Use Town funds to finance the design, construction, expansion,
renovation or other improvements of facilities at which childcare
services are provided in order to increase capacity.
Provide year-round childcare for children between the ages of 0 and
2.5.
Provide full day childcare for children between the ages of 0 and 2.5.
Page 32
Document Title Policy 225 – Childcare Reserve Fund XX/XX/2022
Revisions: 1 Town of Estes Park, Town Administrator’s Office Page 3 of 4
Can demonstrate ability to provide greatest number of new childcare
spaces.
Are licensed by the State of Colorado to provide childcare services.
Are actively pursuing State licensure or demonstrate intent to pursue
such.
Can demonstrate that financial contributions from the requesting entity
or individual will at least match funding from the Town.
iv. Childcare Reserve Expenditures:
a) The Childcare Reserve will be the primary source of funds from the Town
used to facilitate the creation of additional capacity for childcare.
b) Eligible expenditures from the Childcare Reserve Fund include the following:
Finance the design, construction, expansion, renovation or other
improvements to facilities at which childcare services are provided or
will be provided in order to increase capacity or if such improvements
are required to retain existing capacity.
Subsidize tap fees for new construction or expansion of existing
childcare facilities for facilities that qualify as a Day Care Center as
defined in the Estes Park Development Code.
Purchase property to be used for a childcare facility.
c) The Outside Entity Funding budget will be the source of Town funds for any
other childcare expenditures, including Base Funding for the EVICS Family
Resource Center, consistent with Finance Policy 671: Town Funding of
Outside Entities.
c. Process
i. Funds from the Childcare Reserve will be made available through either an
application process (application attached) or direct contribution from the Town at
the Town’s discretion.
a) Application materials must demonstrate need and how funds will be used in
order to increase childcare capacity or retain existing capacity. Town staff, in
consultation with partnering agencies as appropriate, will review applications
and recommend funding allocations based on the criteria outlined in this
document.
d. Funding and Requirements
i. Awards and award amounts will be determined by the Town and will depend on
availability of funds in the Childcare Reserve.
ii. The Town Administrator or Assistant Town Administrator may make award
decisions and execute agreements for awards of $10,000 or less. The Town
Board must make decisions and approve agreement for awards greater than
$10,000.
Page 33
Document Title Policy 225 – Childcare Reserve Fund XX/XX/2022
Revisions: 1 Town of Estes Park, Town Administrator’s Office Page 4 of 4
iii. The Town reserves the right to determine whether to disperse all funds prior to a
project commencing, after a project is completed, or based on certain milestones.
iv. Awards will be accompanied by an agreement from the Town that stipulates, at a
minimum:
a) If award amounts for capital projects are not spent within 12 months of the
award date, the receiving entity or person will be required to return the funds
to the Town, at the Town’s discretion. Extensions beyond 12 months may be
granted depending on the project scope or other circumstances.
b) If the receiving entity is no longer providing the childcare services that Town
funds were awarded in order to facilitate after 24 months of the project
completion date, the receiving entity or person will be required to return the
funds to the Town. Repayment of tap fee subsidies may be waived by the
Town at the Town’s discretion.
c) Entities receiving Town funding will be required to submit a report to the
Assistant Town Administrator upon completion of the project that details how
funds were spent and provides supporting documentation to confirm
expenditure of funds.
d) The Town may require additional stipulations on a case-by-case basis as
deemed necessary.
Approved:
_____________________________
Wendy Koenig, Mayor
_____________
Date
Page 34
POLICY 225 – CHILDCARE FUNDING GUIDELINES
APPLICATION
Page 1 of 2
Childcare Funding Application
Funding Year: ______
Entity/Individual:________________________________________________________
Date of Establishment of Childcare Operations?:_______________________________
Contact Person:__________________________ Title:__________________________
Phone:___________________________ E-mail:_______________________________
Address_______________________________________________________________
Dollar amount requested: $_________________
Please provide the following information to help us assess your entity’s eligibility and
need. Responses should submitted as an attachment to this application form.
Does your childcare operation serve the Estes Valley? Y___ N___
1. What population and geographic area will be targeted for service through this
project or program (100 words max)?
2. How many children in the Estes Valley (total and unduplicated) do you expect to
serve with the project or program for which you are requesting funding (100
words max)?
3. Will you be able to demonstrate that the families you serve fall below 100% of
Area Median Income? If so, how? (100 words max) (Note: Answering “No” to
this question does not impact eligibility for funds.)
4. Describe the project or program that will be supported with the assistance of
Town of Estes Park funding if granted (200 words max).
a. Please attach your anticipated detailed budget for this project or program.
5. How will you measure the success of the project or program for which funding is
requested (200 words max)?
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POLICY 225 – CHILDCARE FUNDING GUIDELINES
APPLICATION
Page 2 of 2
6. Who will be responsible for the administration of the project or program for which
you are requesting funding (name, title, and entity)?
7. If you are requesting funds on behalf of an existing entity, please attach the most
recent fiscal year-end financial statements reflecting your entity’s beginning and
ending balances for the year. This requirement can be met by submitting one or
more of the following:
a. Most recent financial statements as approved by your board
b. Most recent audited statement or review by an outside expert
c. Most recently filed IRS Form 990
OR
If you are requesting funds on behalf of yourself as an in-home or unlicensed
childcare provider, please skip #7 and respond to #8, below.
8. Please list all anticipated funding sources for this project or program. Be sure to
highlight any opportunities to leverage Town funds with external funds.
I swear and affirm that all of the information included in this application, its
attachments, and its supplemental documents is true and correct to the best
of my knowledge.
I understand that funds awarded must be spent within six (6) months of the
award date or the funds must be returned to the Town.
I understand that the entity receiving Town funds to facilitate childcare service
offerings must provide the services outlined in this application for a minimum
of 18 month from the award date or the funds must be returned to the Town.
_____________________________________________________________
Name and Signature of Requestor of Funds
_____________________________________________________________
Name and Signature of Witness
Page 36
Town of Estes Park Trustees:
When the Trustees expanded the former Tree Board into the Parks Advisory Board (PAB), the
expanded duties included additional environmental and parks related work, as well as
incorporation of the town’s public art efforts. These public art efforts primarily consisted of the
bronze sculptures throughout Parks. In 2015, the PAB was formally assigned oversight of the
town’s Art in Public Places (AIPP) program; staff support was assigned to the Parks Division of
the Public Works Department.
Most recently, the former Board of Trustees asked the PAB to investigate options for future
funding of the AIPP program. Our research brought attention to a number of needs and
opportunities with the AIPP program that have been discussed by the PAB.
Below the PAB has identified the key takeaways from our conversations. First off, it is critical the
Town of Estes Park solidifies the desired degree of importance the AIPP program has in the
community. Based on this determination, the PAB recommends the Town of Estes Park:
1.Develops an Arts Master Plan to chart the future of arts in Estes Park, provide oversight
of arts activities (including visual, performing,and other art forms), and support funding
requests to allow for increased arts programming and opportunities in the community.
2.Identifies appropriate staff with relevant curatorial expertise and establishes an
arts-focused board with members of the arts community to oversee the arts program.
The Parks Division has limited capacity to oversee additional arts projects and
insufficient training to properly maintain the Town of Estes Park’s art assets.
3.Engage existing, relevant community organizations to support future arts projects,
maintenance of existing art assets, and local outreach.The success of recent grassroots
efforts for the Women’s Monument Project demonstrates the possibilities of further
community engagement in the arts program.
In addition to these recommendations, please find a full summary of the current situation and
options explored by the PAB for the AIPP program:
Situation Assessment:
1.The main sources for funding public art in communities are: donors, grants, and a % of
public project construction costs. Utilizing a % of public project costs is common at the
federal and state levels. It is also utilized in municipalities with strong public art programs.
a.When previously presented to Town of Estes Park Trustees,they did not seem
interested in utilizing a % of construction costs to fund the arts program.
2.Funding from grants and donors typically requires a formal Arts Master Plan. It is very
difficult for the Town of Estes Park to receive funding without an Arts Master Plan.
3.Based on the direction of the Town of Estes Park’s Trustees, the PAB investigated the
possibility of developing an Arts Master Plan with in-kind or low-cost assistance from a local
university with arts management expertise. The PAB identified and contacted three
universities. Of those, Colorado State University initially expressed interest based on their
community focus as a land grant university.
ART IN PUBLIC PLACES
Page 37
4.After CSU coordinated with their faculty, PAB learned they did not have appropriate
expertise to support the development of an Arts Master Plan for the Town of Estes Park.
Based on this development, it is unlikely we will be able to receive support from a local
university for an Arts Master Plan.
a.CSU faculty recommended talking to an arts management professional working with
the Fort Collins Museum of Art. After following up on this referral, the arts
management professional provided an estimate of $15,000 to $25,000 and
recommended pursuing grants to support these efforts (see Item 2).
5.The Town of Estes Park’s Strategic Plan does not include an Arts Master Plan.
6.The Downtown Master Plan (approved in 2018) includes numerous references to the
importance of art and local artists to the community and our visitors. A primary driver for
this focus is the positive impact public art has on economic development. While much of
this is focused on the more commercial importance of art, the Plan cites the value of
existing public art and emphasizes the need to further develop public art. It also states,
public improvements and private development projects should accommodate and
showcase work by local, regional and national artists”.It further states that the Town should
Incentivize the Arts – Provide incentives for inclusion of public art in private development
projects. The Town’s land use code permits public art to count towards a development’s
landscape requirements” (Downtown Plan, pg 36).
7.Currently, the annual Decorating Utility Boxes (DUB)program has been put on hold due to
limited capacity among the Parks and Power & Communications divisions.
8.Very limited public arts information is currently provided to citizens and visitors by the Town
of Estes Park. Some information is provided by the Estes Arts District, Visit Estes Park and
BEstes, but it is uncoordinated and incomplete.
9.The Town of Estes Park currently does not have consolidated arts & culture management
specifically assigned to staff responsibility.
10.The Town of Estes Park Trustees have expressed interest in increased involvement from
the local arts organizations in the AIPP program.
11.Feedback from the Women’s Monument Committee aligns with the PAB in calling for an
Arts Advisory Committee to provide aesthetic and technical support for the Town AIPP
program and that the local Arts community is interested and available.
12.The Town of Estes Park’s collectible fixed assets are currently above $1.75 million and
probably appreciating. These Assets, while identified,do not have assessment for
adequate management, storage, display or maintenance responsibilities/instructions. The
bulk of these investments roughly fall into these categories:
a.Bronze sculptures: >$347,000
b.Museum holdings: >$1,020,000
c.Misc. art: >$245,000
13.Public Works feels it “does not currently have sufficient staff or specialized training and
experience to inventory, store and maintain the Town’s entire collectible arts assets.”
14.PAB members are uncomfortable making aesthetic and maintenance decisions about
public art without assistance from the local arts community and curatorial experts.
Page 38
Possible Actions:
1.Determine the desired degree of importance of the AIPP program to the community and
an appropriate level of support.
2.Establish a consolidated program for arts and cultural activities. Appropriate staff should
be designated to oversee Town-owned art and other collectible fixed assets.
3.Establish an arts advisory group to assist the designated staff with aesthetic and
technical support for the AIPP program.
4.Enlist appropriate curatorial support to review the list of existing collectible fixed assets
including all Town-owned art) to determine appropriate insurance value, maintenance,
storage and monitoring protocols. This could also include input from local arts
organizations and artists.
a.Based on the size of the Town of Estes Park’s assets,this can be prioritized and
phased over several years.
5.Include an Arts Master Plan in the 2022 Strategic Plan.
6.Utilize the Downtown Master Plan to guide decision making in the downtown area. For
the AIPP program, it recommends increasing our density of public art and a large
emphasis on art of all types to further enhance our downtown environment.
7.Research and apply for grants to assist developing an Arts Master Plan with professional
assistance.
a. If external funding is unavailable, utilize existing planning and curatorial expertise
among Town of Estes Park staff and the local arts community to develop an Arts
Master Plan.
8.Upon establishing an Arts Master Plan, the Town can apply for grants to fund public art
projects for the AIPP. These projects should be managed by appropriate Town staff
efforts, which can be overseen by a volunteer advisory group.
9.Develop and provide descriptions of key public art pieces alongside a map for residents
and visitors, available on the Town of Estes Park website, at the Estes Park Visitor
Center, and through arts organizations such as: Estes Arts District, Art Center of Estes
Park, Visit Estes Park, BEstes (Artists Trail).
10.Develop and promote a program for public art donations.
We appreciate your time in reviewing our update on PAB’s work investigating opportunities for
the AIPP program. If the Trustees find it necessary,representatives from the PAB would be
happy to attend a study session on the topic. Please feel free to direct any questions or
comments to Trustee Cenac or myself (geoffrey.d.elliot@gmail.com).
Best,
Geoff Elliot, Chairperson
On Behalf of the Parks Advisory Board
Page 39
Page 40
February 22, 2022
• Northern Water Inclusion Process
• Renaming Request for a Portion of the
Children’s Park to “Women’s Heritage
Plaza”
• Environmental Sustainability Task Force
Recommendations
March 9, 2022
• Downtown Loop Updates
• 2022 Street Improvement Program
Overview
Items Approved – Unscheduled:
• Town Board and Chamber Board Meet
and Discussion
• Governing Policies Updates
• Downtown Loop Updates as Necessary
Items for Town Board Consideration:
• Facilities Master Plan Final Draft
Future Town Board Study Session Agenda Items
February 8, 2022
Page 41