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HomeMy Public PortalAboutTBP 2016-01-20Town Board Briefing January 20, 2016 Please note that members of the Town Board will have dinner together starting at 5:30pm. The Board will begin the meeting at 6pm with an executive session regarding the Fraser US 40 Highway Improvement Project. This is anticipated to conclude by 7pm at which time the regular meeting will begin. Please note that Touch the Sun is not on the agenda as was discussed at the last meeting. Live Nation is still working through their traffic control plan so the answers to the questions from the Town Board are not available yet. I have them tentatively scheduled for the February 3rd agenda, and expect the County would continue their January 26th meeting pending further information also. We look forward to a presentation from McKinstry regarding our energy sustainability work, this is rescheduled from a meeting late last year. As we work to close out the Fraser US Highway 40 Improvement Project we may have a resolution for consideration pending the outcome of the executive session. Please see supplemental information in the packet regarding the other agenda matters. As always, feel free to contact me if you have any questions or need any additional information. Jeff Durbin Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com FRASER BOARD OF TRUSTEES MINUTES DATE: Wednesday, January 6, 2016 MEETING: Board of Trustees Regular Meeting PLACE: Fraser Town Hall Board Room PRESENT Board: Mayor Peggy Smith; Mayor Pro -Tem Philip Vandernail; Trustees; Eileen Waldow, Katie Soles, Andy Miller and Jane Mather Staff: Town Manager Jeff Durbin; Town Clerk, Lu Berger; Public Works Director Allen Nordin; Town Planner, Catherine Trotter; Police Chief, Glen Trainor, Others: See attached list 1. Regular Meeting: Roll Call Mayor Smith called the meeting to order at 6:04 p.m. 2. Executive Session; Town Manager Evaluation: For discussion of a personnel matter under C.R.S. Section 24-6-402(4)(f)(1) and not involving any specific employees who have requested discussion of the matter in open session and to include TM Durbin. Trustee Soles moved, and Trustee Vandernail seconded the motion to enter executive session. Motion carried: 5-0. Enter: 6:05 p.m. Exit: 7:05 p.m. Trustee Soles moved, and Trustee Vandernail seconded the motion to exit executive session. Motion carried: 6-0. 3. Approval of Agenda: Trustee Vandernail moved, and Trustee Waldow seconded the motion to approve the Agenda. Motion carried: 6-0. 4. Consent Agenda: a) Minutes — December 2, 2015 Trustee Soles moved, and Trustee Waldow seconded the motion to approve the consent agenda. Motion carried: 6-0. 5. Open Forum: 6. Public Hearings: 7. Discussion and Possible Action Regarding: Page 2 of 2 a) Divide Music Festival Grand County is in receipt of an application for a Temporary Use Permit for the Divide Music Festival, proposed for the same location July 22-24, 2015. The Town of Fraser has opportunity to provide comments to Grand County via the public hearing process. Other interested parties can attend the hearings and/or provide comment to Grand County. Public comment was taken from: Team Player Productions — Jason Ornstein Jay Clough Trustees directed the Town Manager to forward a letter of support to the Commissioners with the following recommendations. • All Touch the Sun conditions would need to apply to this festival as well. Trustee Vandernail moved, and Trustee Soles seconded the motion to approve. Motion carried: 6-0. b) Touch the Sun Music Festival Grand County approved a Temporary Use Permit for Touch the Sun country music and camping festival planned for June 24-26, 2016. They have requested the capacity cap be raised. The Town of Fraser has opportunity to provide comments to Grand County via the public hearing process. Other interested parties can attend the hearings and/or provide comment to Grand County. Touch the Sun will be back on January 20, 2016. Public comment was taken from: Live Nation - Sean O'Connell Jay Clough C) 2016 Town Board Workplan TM Durbin outlined the status of 2016 projects as identified in the 2016 Budget message. Clark Lipscomb spoke regarding housing and the local economy. 8. Other Business: Election petitions were available January 5, 2016, they will need to be returned by January 25, 2016. Trustee Soles moved, and Trustee Vandernail seconded the motion to adjourn. Motion carried: 6-0. Meeting adjourned at 9:45 p.m. Lu Berger, Town Clerk TOWN OF FRASER RESOLUTION NO. 2016-01-02 A RESOLUTION EXTENDING THE APPROVAL OF ELK CREEK AT GRAND PARK FINAL PLAN AND FINAL PLAT FILING NO. 1 IN PLANNING AREA 5W OF THE GRAND PARK PLANNED DEVELOPMENT DISTRICT. WHEREAS, Grand Park Development LLC is the current owner of Planning Area 5W; and WHEREAS, the applicant, has requested that the Board of Trustees extend the date of execution of all plat documents; and WHEREAS, the Board of Trustees previously approved the Final Plan and Final Plat for Elk Creek at Grand Park Filing No. 1 via Resolution No. 2015-07. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT THE APPROVAL OF THE FINAL PLAN AND FINAL PLAT FOR ELK CREEK AT GRAND PARK FILING NO. 1 IS HEREBY EXTENDED WITH THE FOLLOWING SAME CONDITIONS: 1. The applicant shall provide written documentation from the USACE confirming that the applicant is in compliance with the requirements to fill within the waters of the United States on Elk Creek within Grand Park Planning Area 5W prior to building permit issuance. 2. The Final Plan and plats boundaries encompass parts of Planning Area 23W, 4W.1 and 4W.2, thus the Final Plan title should reference those areas. Revise accordingly. 3. All engineering documents to be approved by Town Engineer. 4. All legal documents to be approved by Town Attorney. 5. A Subdivision Improvement Agreement (SIA) shall be provided prior to recordation of each Final Plat. 6. The SIA required improvements and collateral associated with those improvements shall be subject to Town Engineer and Town Attorney approval prior to execution and the schedule for completion of said improvements shall be within one (1) year of execution of the SIA. 7. Payment of all applicable fees 8. The Final Plan and Final Plats Filing No. 1 shall be executed and recorded within sixty (60) days of this resolution. The Final Plats for subsequent Filings must be executed and recorded within five (5) years of this resolution or they shall expire unless an extension is approved by the Board of Trustees. 9. Provide 911 Mylar and electronic copy of the plat in accordance with the Subdivision Regulations and updated title commitment. 10. Prior to plat recordation, Grand Park must sign the Mary's Pond Access and Operations Agreement. 11. The Board of Trustees authorizes the Town Manager and Town Attorney to negotiate the final terms of the conservation easement and to authorize appropriate Town officials to accept and execute such easement upon approval of the terms thereof by the Town Manager and Town Attorney. 12. Change General Note #15 on the Final Plan to state the following: Elk Ranch Road shall be improved from CR72 through Filing No.1 as a twenty- four foot (24') wide all-weather surface (CDOT Class 6 road base) access road constructed to the lines, grades and vehicle weight loading requirements of the Town of Fraser Design and Construction Standards for a Local Street. This roadway improvement shall be included in the SIA for Filing No.3. At the completion of Filing No. 4 the all-weather surface access road shall be paved in accordance with Town of Fraser Standards and said improvements shall be included in the SIA for Filing No. 4. Until such time as the access road is paved, it shall be maintained by the HOA or Developer for year-round public access. This does not satisfy the PDD requirement to connect County Road 72 and Old Victory Road unless a trail/sidewalk connection from County Road 72 to Old Victory road is provided. 13. The Town is not requiring formal identification of an easement for the Elk Creek Ditch No. 2, at this time. However, by virtue of its ownership of decreed Elk Creek Ditch No. 2 water rights, the Town owns, and claims, all rights-of-way and easements associated with, or used for, the historical delivery of the water associated with these water rights. 14. Complete attainable housing unit audit in accordance with the Cornerstone Attainable Housing Plan no later than October 31, 2015. Prior to approving the final plat for Filing 3 or October 31, 2016, whichever comes first, the Town and Grand Park will work together to discuss sufficient market demands, negotiate the terms of the deed restriction program and discuss potential incentives. APPROVED AND ADOPTED THIS 20t" DAY OF JANUARY, 2016. BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO 3'11 Mayor ATTEST: Town Clerk MEMO TO: Mayor Smith and the Board of Trustees FROM: Catherine E. Trotter, AICP, Town Planner DATE: January 13, 2016 SUBJECT: Planner Briefing on Elk Creek — Major Subdivision -Round 2 MATTER BEFORE BOARD: The applicant is requesting an extension of time for execution of all documents pertaining to the Final Plan and Final Plat - Elk Creek at Grand Park (Planning Area 5W), Filing No. 1. ACTION REQUESTED: Motion to approve Resolution 2015-01-02 authorizing a sixty day extension for the execution of all documents pertaining to the Final Plan and Final Plat of Elk Creek at Grand Park (Planning Area 5W), Filing No.1. EXECUTIVE SUMMARY: Resolution 2015-07-03 approving the Final Plan and Final Plat for Elk Creek at Grand Park Filing No. 1 and Filing No. 2 provided 120 days for execution of all documents, that time has expired and the applicant is requesting an additional 60 days to complete execution of all documents. Staff recommends approval of Resolution 2016-01-02 approving said extension. BACKGROUND: Previously, the TB approved the Resolution 2015-07-03. This resolution required that all documents be executed within 120 days of approval of said resolution. The applicant is requesting an extension to have time to comply with all the conditions listed in Resolution 2015- 07-03. The applicant has asked for an extension until February 4, 2016. Let's give us enough time so this doesn't have to come back to TB again. The Resolution as drafted specifies a sixty day extension. The Town Board has previously approved this final plan and final plat with conditions. RECOMMENDATION: Staff is recommending approval of Resolution 2016-01-02 with the same conditions. Please contact me with questions/concerns. ctrotter(cbtown.fraser.co.us Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com -' _PA K -"- January 12, 2016 Sent Via e-mail Town of Fraser Attn: Jeff Durbin P.O. Box 120 Fraser, CO 80442 Re: Town of Fraser Resolution No. 2015-07-03 Dear Jeff, Please accept this letter as a request to the Town of Fraser Board of Trustees to consider an extension of time for execution of all documents pertaining to Elk Creek at Grand Park — Final Plan and Final Plats Filing No. 1 in the Planning Area 5W of the Grand Park Planned Development District. Resolution No. 2015-07-03 pertains to Elk Creek at Grand Park — Filing 1 Grand Park respectfully requests the Board of Trustees extend the approval for a period of 15 days to February 4, 2016 for the execution of all documents relating to Elk Creek at Grand Park —Filing 1. Thank you for your consideration of this request. P.O. Box 30 Phone: 970-726-8600 Winter Park, CO 80482 Fax: 970-726-8833 TOWN OF FRASER RESOLUTION NO. 2015-07-03 A RESOLUTION APPROVING ELK CREEK AT GRAND PARK FINAL PLAN AND FINAL PLATS FILING NO. 1 AND FILING NO. 2 IN PLANNING AREA 5W OF THE GRAND PARK PLANNED DEVELOPMENT DISTRICT. At the special meeting of the Fraser Planning Commission held on May 13, 2015, and two regular meetings of the Fraser Planning Commission held on May 27, 2015 and June 22, 2015, Grand Park Development LLC requested a recommendation of approval for a Final Plan, Preliminary Plat and Final Plat Filing No. 1 and Filing No. 2 for Elk Creek at Grand Park; and WHEREAS, Grand Park Development LLC is the current owner of Planning Area 5W; and WHEREAS, Grand Park Development LLC is requesting final plat approval which would create 75 lots in four (4) phases; and WHEREAS, Staff has determined that this application is in compliance with the subdivision and zoning regulations of the Town of Fraser. WHEREAS, the Fraser Planning Commission approved Planning Commission Resolution 2015-05-02 and 2015-06-02 recommending approval of the Final Plan, Preliminary Plat and Final Plat Filing No. 1 and Filings No. 2 Elk Creek at Grand Park with conditions. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT: The Town Board of Fraser, Colorado hereby approves the Final Plan and Final Plats Filing No. 1 and Filing 2 for Elk Creek at Grand Park, Grand Park PDD with the following conditions: 1. The applicant shall provide written documentation from the USACE confirming that the applicant is in compliance with the requirements to fill within the waters of the United States on Elk Creek within Grand Park Planning Area 5W prior to building permit issuance. 2. The Final Plan and plats boundaries encompass parts of Planning Area 23W, 4W.1 and 4W.2, thus the Final Plan title should reference those areas. Revise accordingly. 3. All engineering documents to be approved by Town Engineer. 4. All legal documents to be approved by Town Attorney. 5. A Subdivision Improvement Agreement (SIA) shall be provided prior to recordation of each Final Plat. 6. The SIA required improvements and collateral associated with those improvements shall be subject to Town Engineer and Town Attorney approval prior to execution and the schedule for completion of said improvements shall be within one (1) year of execution of the SIA. 7. Payment of all applicable fees 8. The Final Plan and Final Plats Filing No. 1 shall be executed and recorded within one hundred twenty (120) days of this resolution. The Final Plats for subsequent Filings must be executed and recorded within five (5) years of this resolution or they shall expire unless an extension is approved by the Board of Trustees. 9. Provide 911 Mylar and electronic copy of the plat in accordance with the Subdivision Regulations and updated title commitment. 10. Prior to plat recordation, Grand Park must sign the Mary's Pond Access and Operations Agreement. 11. The Board of Trustees authorizes the Town Manager and Town Attorney to negotiate the final terms of the conservation easement and to authorize appropriate Town officials to accept and execute such easement upon approval of the terms thereof by the Town Manager and Town Attorney. 12. Change General Note #15 on the Final Plan to state the following: Elk Ranch Road shall be improved from CR72 through Filing No.1 as a twenty- four foot (24') wide all-weather surface (CDOT Class 6 road base) access road constructed to the lines, grades and vehicle weight loading requirements of the Town of Fraser Design and Construction Standards for a Local Street. This roadway improvement shall be included in the SIA for Filing No.3. At the completion of Filing No. 4 the all-weather surface access road shall be paved in accordance with Town of Fraser Standards and said improvements shall be included in the SIA for Filing No. 4. Until such time as the access road is paved, it shall be maintained by the HOA or Developer for year-round public access. This does not satisfy the PDD requirement to connect County Road 72 and Old Victory Road unless a trail/sidewalk connection from County Road 72 to Old Victory road is provided. 13. The Town is not requiring formal identification of an easement for the Elk Creek Ditch No. 2, at this time. However, by virtue of its ownership of decreed Elk Creek Ditch No. 2 water rights, the Town owns, and claims, all rights-of-way and easements associated with, or used for, the historical delivery of the water associated with these water rights. 14. Complete attainable housing unit audit in accordance with the Cornerstone Attainable Housing Plan no later than October 31, 2015. Prior to approving the final plat for Filing 3 or October 31, 2016, whichever comes first, the Town and Grand Park will work together to discuss sufficient market demands, negotiate the terms of the deed restriction program and discuss potential incentives. If such conditions are not satisfied, the approval provided by this resolution is no longer valid. DULY MOVED, SECONDED AND ADOPTED THIS 29th DAY OF JULY, 2015. OF (SEAL)` c�CC7Rr���% BOARD OF - OF BY nll Mayor A�V: /') I f • TOWN OF FRASER RESOLUTION NO. 2016-01-01 A RESOLUTION EXTENDING THE APPROVAL OF A SUBDIVISION EXEMPTION PLAT FOR GRAND PARK DRIVE, TOWN OF FRASER, GRAND COUNTY, COLORADO WHEREAS, Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC are the owners of Parcel 1 and Parcel 2, as identified on said exemption plat; and WHEREAS, the applicant, has requested that the Board of Trustees extend the date of execution of all exemption plat documents; and WHEREAS, the Board of Trustees previously approved the exemption plat via Resolution No. 2015-11-04 which created two parcels to convey to the West Mountain Metropolitan District in order to provide the road right-of-way corridor and construction area associated with the Union Pacific Railroad Underpass (UPRR) project; and NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT THE APPROVAL OF THE SUBDIVISION EXEMPTION PLAT FOR GRAND PARK DRIVE IS HEREBY EXTENDED WITH THE FOLLOWING SAME CONDITIONS: 1. Add the following plat note: Parcel 1 and Parcel 2 can only be sold or transferred to the West Mountain Metropolitan District or the Town of Fraser. 2. Revise the plat to identify ownership of adjacent lots and identify the Fraser and Winter Park town boundaries. 3. Delete reference to a "60' County Road" on the plat. (The title examiner says that it is not a public or valid ROW and is not referenced in the title commitment.) 4. Delete Final Plat from the title of the exemption plat in accordance with the Subdivision Regulations. 5. Provide electronic copy of the plat in accordance with the Subdivision Regulations. 6. Payment of all applicable fees 7. Execution of all documents within 60 days of the adoption of this Resolution. 8. Approval of the Subdivision Exemption Plat for Grand Park Drive does not change the conditions of the Grand Park Planned Development District (PDD), Reception # 2005-012709, Roadway Master Plan APPROVED AND ADOPTED THIS 201h DAY OF JANUARY, 2016. BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO Aw Mayor ATTEST: Town Clerk MEMO TO: Mayor Smith & Board of Trustees FROM: Catherine E. Trotter, AICP, Town Planner DATE: January 13, 2016 SUBJECT: Planner Briefing on Grand Park Drive Exemption Plat -Round 2 MATTER BEFORE THE PLANNING COMMISSION: The applicant is requesting an extension of time for execution of all plat documents pertaining to the Subdivision Exemption Plat - Grand Park Drive. ACTION REQUESTED: Motion to approve Resolution 2016-01-01 authorizing a sixty day extension for the execution of all plat documents pertaining to Grand Park Drive Exemption Plat. EXECUTIVE SUMMARY: Resolution 2015-11-04 approving the exemption plat for Grand Park Drive provided 30 days for execution of all documents, that time has expired and the applicant is requesting an additional 60 days to complete execution of all documents. Staff recommends approval of Resolution 2016-01-01 approving said extension. BACKGROUND: Previously, the TB approved an exemption plat for Grand Park Drive via Resolution 2015-11-04. This resolution required that all plat documents be executed within 30 days of approval of said resolution. The applicant is requesting a sixty day extension to have time to comply with all conditions listed in Resolution 2015-11-04. Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC previously requested approval of a subdivision exemption plat on both sides of the Union Pacific Railroad (UPRR) right-of-way near Leland Creek. The two parcels identified as parcel 1 and parcel 2 represent the planned road right-of-way corridor and railroad underpass construction corridor associated with the UPRR underpass project. The exemption plat will allow the applicant to convey the two parcels to the West Mountain Metropolitan District. The West Mountain Metropolitan District entered into a construction and maintenance agreement with UPRR and the Town of Fraser for the construction of the railroad underpass at this location. This property will ultimately become part of Grand Park Drive. The Town Board has previously approved this exemption plat with conditions. RECOMMENDATION: Staff is recommending approval of Resolution 2016-01-01 with the same conditions. Please contact me with questions. ctrotter(a)town.fraser.co.us Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com -IJ __ afPR - 7CT_ K --- January 12, 2016 Sent Via e-mail Town of Fraser Attn: Jeff Durbin P.O. Box 120 Fraser, CO 80442 Re: Town of Fraser Resolution No. 2015-11-04 Dear Jeff, Please accept this letter as a request to the Town of Fraser Board of Trustees to consider an extension of time for execution of all documents pertaining to a Subdivision Exemption Plat for Grand Park Drive. Resolution No. 2015-11-04 pertains to the Subdivision Exemption Plat for Grand Park Drive, Parcel 1 and Parcel 2. Cornerstone Winter Park Holdings, LLC and Grand Park Development, LLC respectfully request the Board of Trustees extend the approval for a period of 60 days for the approval of a subdivision exemption plat in order to convey Parcel 1 and Parcel 2 to the West Mountain Metropolitan District. Thank you for your consideration of this request. P.O. Box 30 Phone: 970-726-8600 Winter Park, CO 80482 Fax: 970-726-8833 TOWN OF FRASER RESOLUTION NO. 2015-11-04 A RESOLUTION APPROVING A SUBDIVISION EXEMPTION PLAT FOR GRAND PARK DRIVE, TOWN OF FRASER, GRAND COUNTY, COLORADO At the regular meeting of the Fraser Planning Commission held on October 28, 2015, Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC requested a recommendation of approval for a Subdivision Exemption Plat; and WHEREAS, Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC are the owners of Parcel 1 and Parcel 2, as identified on said exemption plat; and WHEREAS, the applicant, is requesting approval of a subdivision exemption plat in order to convey the two parcels to the West Mountain Metropolitan District. The two parcels identified as parcel 1 and parcel 2 represent the road right-of-way corridor and construction area associated with the Union Pacific Railroad Underpass (UPRR) project; and WHEREAS, the West Mountain Metropolitan District entered into a construction and maintenance agreement with UPRR and the Town of Fraser for the construction of the railroad underpass; and WHEREAS, Staff has determined that the application is in compliance with the subdivision exemption regulations of the Town of Fraser; and WHEREAS, the Fraser Planning Commission voted to recommend approval of the Subdivision Exemption Plat Grand Park Drive via Planning Commission Resolution 2015-10-01. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT THE SUBDIVISION EXEMPTION PLAT FOR GRAND PARK DRIVE IS HEREBY APPROVED WITH THE FOLLOWING CONDITIONS: 1. Add the following plat note: Parcel 1 and Parcel 2 can only be sold or transferred to the West Mountain Metropolitan District or the Town of Fraser. 2. Revise the plat to identify ownership of adjacent lots and identify the Fraser and Winter Park town boundaries. 3. Delete reference to a "60' County Road" on the plat. (The title examiner says that it is not a public or valid ROW and is not referenced in the title commitment.) 4. Delete Final Plat from the title of the exemption plat in accordance with the Subdivision Regulations. 5. Provide electronic copy of the plat in accordance with the Subdivision Regulations. 6. Payment of all applicable fees 7. Execution of all documents within 30 days of the adoption of this Resolution. 8. Approval of the Subdivision Exemption Plat for Grand Park Drive does not change the conditions of the Grand Park Planned Development District (PDD), Reception # 2005-012709, Roadway Master Plan APPROVED AND ADOPTED THIS 18th DAY OF NOVEMBER, 2015. BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO Qss� BY: se cO��° ATTEST: Town Clerk TOWN OF FRASER RESOLUTION NO. 2016-01-03 A RESOLUTION AUTHORIZING BUDGETED EXPENDITURES FOR THE 2016 — SAFEWAY FRONTAGE ROAD UNDERDRAIN AND RESURFACING PROJECT AND AUTHORIZING THE TOWN MANAGER TO ENTER INTO A CONTRACT. BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT: 1. The Town Board of Fraser, Colorado hereby authorizes expenditures not -to -exceed the approved 2016 budget amount of $50,000 for the work as outlined by the Public Works Director and authorizes the Town Manager to enter into a contract for the work. 2. The public bidding process will be used for this project. 3. Following the opening and review of the bids received, staff intends to award the Contract to the most responsible and responsive bidder. 4. All documents must be executed and work completed within fiscal year 2016 or this approval shall no longer be effective. READ, PASSED ON ROLL CALL VOTE, AND ADOPTED BY THE BOARD OF TRUSTEES THIS 20th DAY OF JANUARY, 2016. Votes in favor: Votes opposed: Absent: Abstained: (S E A L) BOARD TRUSTEES OF THE TOWN OF FRASER, COLORADO BY: Mayor ATTEST: Town Clerk MEMO TO: Mayor Smith and the Board of Trustees FROM: Allen Nordin, CWP, Public Works Director DATE: January 20, 2016 SUBJECT: Staff Report PW: Safeway Frontage Road Underdrain and Resurfacing Project MATTER BEFORE BOARD: Staff is seeking authorization to initiate bidding and contracting for repairs to the Safeway frontage road. The 2016 Budget includes $50,000 for this project. ACTION REQUESTED: Approval of Resolution 2016-01-03 to expend budgeted funds from the General Fund in the amount not -to -exceed $50,000, and, to authorize the Town Manager to enter into an agreement with the most responsive and responsible bidder for the work associated to the "2016 — Safeway Frontage Road Underdrain and Resurfacing Project" as described in the Town of Fraser Contract Documents and Technical Specifications bid packet dated January 20, 2016. EXECUTIVE SUMMARY: A section of town roadway accessing the Safeway grocery store and The Fraser Market Place, also known as the Safeway frontage/secondary access road, has failed and staff is seeking approval to initiate bidding and contracting for work to address the problem. Staff recommends approval of Resolution 2016-01-03. BACKGROUND: A section of town roadway accessing the Safeway grocery store and The Fraser Market Place, also known as the Safeway frontage/secondary access road, has failed and is impacting the traveling public when they come to Fraser to shop at one of our primary commercial areas. The 2016 Budget includes $50,000 for this project. It is our hope to begin bidding the project promptly in hopes of obtaining better bids and completing the project in 2016. The work will be scheduled to begin in late April/early May and is anticipated to be completed in advance of the June 24-26 Touch the Sun festival. However, if the work cannot be completed by the end of the day on Wednesday June 22nd, no work will be allowed on Thursday, June 23rd through Monday June 27th, and again beginning Thursday June 301h through Tuesday July 5th for the Independence Day weekend. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com It is believed that groundwater underneath this section of roadway is coming from a couple of different sources, possibly the adjacent upper Lion's pond and/or the subsurface utility trench that runs beneath the asphalt roadway. This condition was initially observed several years ago and may possibly be linked to the trench that is used for the sewer main trunk line and Pumpback line that were installed in the mid -2000 and eventually daylighting through the asphalt roadway. For a temporary solution, staff installed a rudimentary underdrain along the west shoulder of the roadway in an effort to carry the flows away from the asphalt road surface and a nearby sanitary sewer manhole to minimize inflow & infiltration (I&I). This solution was successful for several years until last summer when apparently the groundwater flows, including the freeze/thaw cycles, took a toll on the road sub -base and asphalt causing the roadway failure. In the fall of 2015, staff removed the failed asphalt and added compacted road base material into the area in hopes of making it through the winter and until such time that a permanent fix could be researched and applied. Staff has been working closely with the town's engineering consultants, Bowman Consulting Group (BCG), to develop a plan for this work. Staff and BCG engineers have developed what we believe is a solution to the groundwater impacts on this section of roadway. Additionally, Winter Park Ranch W&S was contacted to inform them of the upcoming project and to get input from them of any concerns they may have as a result of the work. They did not feel there would be any immediate impacts to their augmentation ponds. The 2016 project work includes the removal of the failed asphalt and subgrade materials; installation of angular, permeable and alternative geotextile materials including perforated drain pipe that will promote the groundwater to flow-through and under the roadway section and into the drainage ditch along the west side of the frontage road. Once the road base is reconstructed and all geo technical testing completed, the road will receive the final asphalt surfacing application. It is anticipated to close the frontage roadway to traffic during the work to allow the contractor full use of the area and work freely to expedite the time needed to make this repair which is estimated to be approximately 3 weeks. Alternate bid work includes, but is not limited to, installation of additional drain pipe to carry groundwater flows along the east side of the frontage road and into the lower pond. ALTERNATIVES: 1. The "no action alternative," leave roadway as is with additional traffic control measures as appropriate. 2. Approve Resolution 2016-01-03 which provides for replacement of existing materials with a new underdrain system and pavement. 3. Replacement of the failed section of pavement without the underdrain component. 4. Design the project on a broader scope to accommodate a full movement intersection and traffic signal at US40 and Old Victory Road. RECOMMENDATION: Staff recommends approval of Resolution 2016-01-03 authorizing the expenditure and authorizing the Town Manager to enter into a contract with the winning bidder for the "2016 — Safeway Frontage Road Underdrain and Resurfacing Project" consistent with the Budget. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com J i TON syscwvlsf + `TV * �' r i L of A Project Site Location '77 Lott u' 4 Safeway Frontage Road- South Facing Safeway Frontage Road- North Facing Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com /I* TOWN OF FRASER - CHALLENGES FACING HOUSING Water and Sewer Tap Fee Analysis of 14 Colorado Mountain Town Communities Town Median Household Income Rank Hi to Low Median Real Estate Value Rank Hi to Low Affordability And Tap Fees Water/Sewer Rank Hi Tap Fees as a Tap Fees to Low % of Med HHI Rank Hi Tap Fees as a % to Low of Med R/E Val Rank HI to Low Fraser $47,000 13 $250,000 10 $15,000 4 31.9% 3 6.0% 3 Granby $60,000 6 $205,000 13 $14,810 6 24.7% 6 7.2% 1 Kremling $45,000 14 $205,000 13 $11.700 10 26.0% 5 5.7% 4 Winter Park $65,000 4 $360,000 8 $23,100 1 35.5% 1 6.4% 2 Grand County 9.3 11 5.3 3.75 2.5 Glenwood Sp s $57,000 8 $405,000 7 $11,344 11 19.9% 9 2.8% 12 Carbondale $67,000 3 $475,000 3 $10,870 12 16.2% 12 2.3% 14 Rifle $53,000 11 $255,000 9 $12,575 8 23.7% 7 4.9% 5 Garfield County 7.3 6.3 10.3 9.3 10.3 Steamboat Sp s $65,000 4 $500,000 2 $11,847 9 18.2% 11 2.37% 13 Craig $52,000 12 $235,000 11 $6,680 14 12.8% 14 2.84% 10 Hayden $55,000 9 $220,000 12 $7,200 13 13.1% 13 3.27% 8 Moffat and Routt Counties 8.3 8.3 12 12.7 10.3333 Breckenridge $55,000 9 $450,000 5 $17,950 2 32.6% 2 3.99% 7 Eagle $75,000 1 $410,000 6 $17,000 3 22.7% 8 4.15% 6 Silverthorne $68,000 2 $460,000 4 $13,000 7 19.1% 10 2.83% 11 Dillon $56.000 7 $521,000 1 $15,000 4 26.8% 4 2.9% 9 Ea le and Summit Counties 4.8 4.0 4.0 4.8 8.3 *Median value includes all homes in the community Summary: 1. Fraser's Median Household Income is next to last of the 14 communities evaluated 2. Fraser's Median Real Estate Value came in 10th ranking one of the lowest 3. Fraser's Water & Sewer Tap Fee is the 4th highest out of the 14 communities evaluated 4. Fraser's Water & Sewer Tap Fee is the 3rd most costly when compared to Median Household Income of the community 5. Fraser's Water & Sewer Tap Fee is the 3rd most costly when compared to Median Real Estate Values of the community Tap Fees I'a(,c I of 2 r TOWN OF FRASER - CHALLENGES FACING HOUSING Water and Sewer Service Fees of 14 Colorado Mountain Communities Town Base Fee Service Fees on a MONTHLY basis Water Sewer Monthly Usage Charge per 1000 Base Fee Usage Charge Total Base Fee Base Fee Rank Hi to Low Consumption at 6K gallons Total w/ Consumption Fraser $51.00 $1.50 per 1000 $45.83 $96.83 14 $9.00 $105.83 Granby $44.92 None indicated $48.72 $93.64 13 $93.64 Kremling Not Found Not Found $39.00 $39.00 2 $39.00 Winter Park $33.50 $3/1000 gallons > 4000 gallons $36.00 $69.50 10 $6.00 $75.50 Grand County $32.35 $42.39 $74.74 $3.75 $78.49 Glenwood Spgs $23.33 $1.70 per 1000 $46.33 $69.67 11 $10.20 $79.87 Carbondale $3.76 $3.84 per 1000 $5.03 $6.00 per 1000 $8.79 1 $23.04 $31.83 Rifle $25.20 Undisclosed $40.71 $65.91 8 $65.91 Garfield County $17.43 $30.69 $48.12 $11.08 $59.20 Steamboat Spgs $21.84 $2.30 1000-4000; $3.45 5000-12000 $42.57 $64.41 5 $20.70 $85.11 Craig $28.50 $2.90 per 1000 $28.00 $2.90 per 1000 $56.50 4 $34.80 $91.30 Hayden $37.58 $3.61 6000-12000; $4.11 >12000 $30.75 $68.33 9 $3.61 $71.94 Moffat and Routt Counties $29.31 $33.77 $63.08 $19.70 $82.78 Breckenridge $38.45 $5.25 per 1000 above 10000 gallons $26.00 $64.45 7 $0.00 $64.45 Eagle $29.10 $5.45 6001-28000 gallons $44.00 $73.10 12 $0.00 $73.10 Silverthorne 1 $13.62 $1.35 for 0-15000 gallons calculated quarterly $31.32 $44.94 3 $8.10 $53.04 Dillon 1 $23.30 $5.50 0-6,000gallons; $6.55 6000-10000; $8.05 > 10000 1 $41.201 1 $64.50 6 $33.001 $97.50 Eagle and Summit Counties 1 $26.121 1 $35.631 1 $61.751 1 $10.281 $72.02 Summary: 1. Fraser has the highest TOTAL Base Fee of all 14 communities evaluated 2. Fraser has the highest Base WATER fee of all 14 communities evaluated 3. Fraser has the 3rd highest Base SEWER fee of all 14 communities evaluated 4. Fraser has the highest Total Fee when assuming consumption of 6,000 gallons of water per month Water & Sanitation Mill Levies W&S Mill City Levies Fraser 0 0 2.273 7.04 13.951 0 0 0 0 0 0 0 0 0 0 0 0 0 Granby Kremling Winter Park Ski Area WP - Grand County One Glenwood Spgs Carbondale Rifle Garfield County Steamboat Spgs Craig Hayden Moffat and Routt Counties Breckenridge Eagle Silverthorne Dillon Eagle and Summit Counties Service Fees Page 2 of 2 Leading the Way Housing Ladder is Key to Denver's Continued Growth what elements of our current vibrancy do you think will have the most impact on our future? 1B: Denver and the metro area have so much going for them. Mayor Hancock's vision for downtown and the airport culminated by the airport cities and growth in the metro area have created what many call nodes linked by transportation. Nodes such as downtown Denver, the Denver Tech Center, Au- rora Medical Center, Arvada and points beyond now linked by significant transportation including light rail and the new In- terstate 70 redevelopment just getting started. The collabora- tion between multiple city leaders has set the stage for smart growth that will keep it pleasurable to live here. I've lived in Arvada for nearly 30 years and the possibility of having my morning coffee in Old Town and hopping on the light rail to downtown is fantastic! One of our opportunities is to resolve the congestion to the access of our biggest asset as a region - the mountain areas and, specifically, the west -bound I-70 access thereto. Let's face it, beyond our strong and diversified business cli- mate, it's our recreation resources that give us a big advan- tage and reason people want to live here. We have to solve the transportation challenges there. 1S: Colorado and the Front Range, in particular, have seen tremendous growth and new construction in the past few years. Coming out of the recession, what is the state of the construction industry and can you speak to the construction cost increases you are seeing in the market? JB: Construction costs increases are a factor of supply and demand and I think it will be a short-term issue. During the recession, we saw a great loss of labor and talent in the trades due to a drop off in construction activity. The protracted duration of the recession resulted in those work- ers leaving this profession to seek other job opportunities. I don't think we'll ever get them back So now, we have an op- portunity to train new workers for a variety of construction trades. The benefit to the current construction growth is that the industry has good jobs to offer both new and seasoned workers, which builds industry expertise and headcount. Un- til the building cycle tapers and/or labor resources meet the demand, we'll see construction pricing on an upward path. 1S: Looking to the future, what do you see as our greatest challenge? IB: Denver seems to be at the epicenter of the national scene. We have seen and continue to see a large increase in 22 / BUILDING DIALOGUE / SEPTEMBER 2015 we are seeing currently is just not realistic for the millennials who are maybe three to five years into their careers and finding real estate prices out of reach. We are missing affordable housing options that are between rental and single-family home prices - were miss- ing housing product in the $200K to S250K range, for instance. One of the answers is condos and owned affordable prod- uct. In the last 10 years, we really haven't seen any new condo development. This leaves a huge gap in the housing options ladder. We have to solve the legal framework that increases condo construction risk and makes it too expensive to embark upon. Developers won't develop condos. Contractors won't build them and architects won't design them. Affordable housing is key to the sustainability of growth in Denver. We are at our strongest when we have conditions that help young people grow up, get educated, have robust job opportunities, and can live and own real estate in the urban corridors. We have all of the above except the latter. This is a critical challenge for our future. It is the housing ladder topic that spawned a conversation with Chris Waggett, CEO of D4 Urban and chairman of Tran- sit Alliance. 1S: Pertaining to the housing stock, specifically at affordah price range, what do you see as implications from the lack of entry-level ownership options? CW: I moved here nine years ago, so I'm one of the many w migrated to Denver. We love the lifestyle, the opportunity,' business climate, openness to newcomers and the prospE of Denver's growth we've witnessed in the last nine years. It's been fas- cinating to watch the pendulum swing from employees in 2006 to employer in the downturn, and now back to the employee. Talent is criti- cal to our future and the good news < is that we have lots of talent here and new talent moving here. Talent moves to where it wants to be and employers follow that educated talent. The symbi- osis of talent and employers is importChriS - ant to Colorado's economic engine. FJ, Right now we have lots of rental op- Principal' tions for young workers and then nothing V. between multifamily rental and single-family homes, whose price tags are either out of reach for most young professionals or are located in suburban locations that they don't aspire to move to until they have families. Condominium construction is virtually nonexistent, so we have a both an affordability and housing product gap. This gap is the result of constrained supply, which increas- es pricing, and we are simply pricing ourselves out of the af- fordable range. Key competitors like Dallas, Phoenix and Salt Lake City have relatively affordable median house prices of $165K to $175K compared to Denvers at $33OK and an average home price of S4O4K This is a key concern for corporate relo- cations to Colorado in terms of being an attractive place for their workforce to live. The ability to offer our young talent and our retiring baby boomers a full spectrum of affordable urban and suburban housing product types is critical to our future. I'm concerned that without it, we will see impacts on migration to Den- ver -metro region and an exodus from these two populations in search of affordable housing opportunities. Lack of housing affordability will be a headwind to growth - both economic and population. Loss of population will reduce our tax base and will impact our ability to attract businesses that seek tal- ent, all of which could put us at risk in terms of continued prosperity and also in an economic downturn. We have an opportunity to look to the future and prevent a loss of young, educated talent in the next generation by offer- Leading the Way ing common sense construction defects reforms that would stimulate condo development as an affordable economic pathway to home ownership and close the housing gap. Fur- thermore, focusing that development around transit is "smart growth" and what was promised to, and endorsed by, the vot- ers in FasTracks and the expansion of RTD's light-rail system. It's actually the only way that we can prudently manage pop- ulation growth and preserve our quality of life. The business and population growth that is going on in Colorado right now is amazing and it's enabled us as a region to achieve what we are today. However, we need to be proac- tive to solve the housing affordability and options problem and it requires leadership froth the state, cities and regional leaders - wttnout a couaooranve error[, r m concernea mar me housing affordability and opportunity issue could derail our positive growth and our regional prosperity. It's just another reason why the Metro Mayors Caucus has been unanimously imploring the state to act on this issue as they know the im- pact it's having in their communities now and going forward. Finally, our first project is a market -rate affordable product at Alameda Station, known as Denizen. We are currently col- laborating with Medici Communities to develop a tax credit affordable product on our mixed-use Bus Barn site, west of Alameda Station, that will be connected to it via pedestrian bridge. We would dearly like to be developing condominium product next for first-time homebuyers, but current legislative realities make this a challenging proposition. \\ ers Construction built the Triangle Building adjacent to Union Station. Photo courtesy SClundel'S Construction SEPTEMBER 2015 \ BUILDING DIALOGUE \ 23 top of mind MARKET PULSE Home sales are outpacing last year's sales, but tight inventories and mortgage underwriting continue to weigh on the market. First-time buyers are slowly emerging but make up just 30 percent of buyers, down from historical norms of around 40 percent. SUPPLY & DEMAND All trend lines are from August 2014 to August 2015. •r • Seasonally adjusted annual rale, which is the actual rate of sales for the month, multiplkid by 12 and adjusted for seasonal sales differences. 2014 data reflects final seasonal adjustments. Number of existing homes on the market at the end of the month. National median. UPS AND DOWNS OF HOME PRICES AND INCOME Equilibrium between home prices and household income helps keep the housing market stable, although the two rarely line up. Since early 2014, the gap has been widening but at a more modest pace than in previous vears as home Brice eains have slowed. o Source! NAR Research Why Renters Can't Make the Move COf course, renters don't like forking -- Lawrence Yun is over more money to be tenants. That's NAR chief economist. why, when rents rise strongly, it creates demand for home buying But that isn't In August, rents spiked 3.6 percent over the same time a year earlier, the fastest pace since 2008. As rental vacancy rates fall across most parts of the country and more jobs are created, they will continue to jump further. This trend is both good news and bad news. Naturally, people collecting rents are thrilled with the gains they're seeing. Both large apartment investors and mom-and-pop landlords are enjoying the best conditions they've seen in years. As REALTORS,", many of you are among the biggest beneficiaries: our surveys indi- cate about a third of you own investment property. happening this time. In fact, the share of first-time buyers, who typically lead the move from renting to owning, continues to hover at near 30 -year lows. Rising rents are making it difficult for potential first-time buyers to become owners, especially since rent increases are outpacing wage gains. That means more of a tenant's income is being eaten up in rent, making it harder to save for a down payment. The weak wage growth is a conse- quence of decade-long subpar economic growth. Historically. U.S. gross domestic product grows at a 3 percent annual rate. But since the recession, growth has been averaging only 2.2 percent. A decrease of 0.8 percentage points might sound small but, in an economy of $18 trillion, it has a significant, cumulative impact. Meanwhile, home prices are rising, in large part because builders aren't adding new homes for sale at a rate matching demand. Only 5 million single-family and apartment homes have been built in the last five years, even though 12.5 million jobs have been added during that period. The lag in construction represents good and bad news. It's helping to keep rents and home prices up, but it's making home ownership more difficult as tenants struggle to save for the down payment they'll need to buy an increasingly costly home. While the construction outlook is unclear, until builders contribute to the overall housing stock at a more normal pace, home prices and rents will continue to rise. 12 REALTOR' NOVEMBER/OECEMBER2015 REALTORMAG.REALTOR.ORG •� Med— Home Pate —t— Median Ha,s Wd 12I- income 9' 6: 3i" 1"1AA o Source! NAR Research Why Renters Can't Make the Move COf course, renters don't like forking -- Lawrence Yun is over more money to be tenants. That's NAR chief economist. why, when rents rise strongly, it creates demand for home buying But that isn't In August, rents spiked 3.6 percent over the same time a year earlier, the fastest pace since 2008. As rental vacancy rates fall across most parts of the country and more jobs are created, they will continue to jump further. This trend is both good news and bad news. Naturally, people collecting rents are thrilled with the gains they're seeing. Both large apartment investors and mom-and-pop landlords are enjoying the best conditions they've seen in years. As REALTORS,", many of you are among the biggest beneficiaries: our surveys indi- cate about a third of you own investment property. happening this time. In fact, the share of first-time buyers, who typically lead the move from renting to owning, continues to hover at near 30 -year lows. Rising rents are making it difficult for potential first-time buyers to become owners, especially since rent increases are outpacing wage gains. That means more of a tenant's income is being eaten up in rent, making it harder to save for a down payment. The weak wage growth is a conse- quence of decade-long subpar economic growth. Historically. U.S. gross domestic product grows at a 3 percent annual rate. But since the recession, growth has been averaging only 2.2 percent. A decrease of 0.8 percentage points might sound small but, in an economy of $18 trillion, it has a significant, cumulative impact. Meanwhile, home prices are rising, in large part because builders aren't adding new homes for sale at a rate matching demand. Only 5 million single-family and apartment homes have been built in the last five years, even though 12.5 million jobs have been added during that period. The lag in construction represents good and bad news. It's helping to keep rents and home prices up, but it's making home ownership more difficult as tenants struggle to save for the down payment they'll need to buy an increasingly costly home. While the construction outlook is unclear, until builders contribute to the overall housing stock at a more normal pace, home prices and rents will continue to rise. 12 REALTOR' NOVEMBER/OECEMBER2015 REALTORMAG.REALTOR.ORG A Dream Too Far Owning a home is a key rung on the ladder of economic advancement. What happens if that rung remains elusive for many? By Meg white It's been almost a year since the gap Policy Center. And an uneven recovery and further out of reach." he says, noting between America's wealthiest and has only exacerbated the divide. While the the correlation between low home own- _. middle-income-familiesreachedits highest—stock marketreboundedlor investors—tile—Prship levels and high wealth inequality -_ level on record. The Pew Research Center latest tumult notwithstanding—many "They're joined at the hip. They perpetuate found the median net worth of the nation's current and former home owners are still each other." upper-income families ($639,400) was dealing with fallout dating back to 2008. In the second quarter of this year, the almost seven times that of middle-income Some positive economic indicators are home ownership rate fell to 63.5 percent, families ($96,500), making for the widest not as reassuring as they once were. Chris its lowest level since 1967. In particular, the wealth disparity since the Federal Reserve Herbert, managing director of Harvard's relative scarcity of first-time buyers sug- began collecting such data. The situation Joint Center for Housing Studies, notes gests continuing challenges for an industry was ten times worse for the families earn- that even though the unemployment rate that relies on a continual move -up trend. ing too little to enter the middle income has decreased significantly, many of the "if people cannot make that first step into bracket, with a 70 -to -1 ratio separating gains have been in low-wage, part-time their starter home, it stops the whole chain them from high-income families. jobs with few benefits. "There's still a lot reaction.' Yun says. "For a home owner Paul Weech, CEO of NeighborWorks, a national coalition of local affiliates working to support affordable housing and com- munity development, has been watching this gap for decades. "We've always had inequality in this country [but] the macro data has shown a growing gap,' he says. "It's a fact that more and more of the wealth is flowing to fewer people:" For those who care about maintaining a high home ownership rate, it's a trouble- some trend, says National Association of REALTORSu`' Chief Economist Lawrence Yun. "It's certainly not in the interest of broader America, and it's something that everyone should be concerned about." A Vicious Cycle Though no one was immune to the Great Recession, its impact was felt far more acutely by lower-income Americans than those with more wealth. "The housing boom and bust really did widen wealth inequality;' says Laurie Goodman, director of The Urban Institute's Housing Finance of underemployment;' Herbert says. "A 5 percent unemployment rate is not what it used to be." One of the most common ways for Americans to move up the economic ladder and invest in other wealth - generating activities—such as the stock market, paying for advanced educational opportunities, or starting a business—is by leveraging equity they have in their homes. "We traditionally have been huge sup- porters of home ownership,"' says Weech. "We see it as a way to provide stability for households but also as an asset -building strategy." John Taylor, CEO of the National Com- munity Reinvestment Coalition, an associ- ation of about 600 organizations focused on improving access to private capital in underserved communities, agrees that those who lack the opportunity to become home owners have a weakened ability to reinvest their wealth. "If you continue to be a renter, locked out of the home ownership arena, increasingly those things are further in the upscale neighborhood, who are the future buyers?" Opening the Credit Box Many would-be buyers are still unable to take advantage of home affordability— fostered by low interest rates—because they can't secure mortgage approval. They entered the market on the wrong side of the "buy low, sell high" equation, and now they're locked out. "They suffered dispro- portionate losses,' says Goodman. "Now, we see mortgage credit being unavailable exactly when it would be the most useful:' Goodman says pilot programs that use less traditional credit -scoring factors— such as allowing family members who are not on the deed to contribute to the overall tally of household wealth and counting utility, cell phone, and rent bills toward payment history—can help correct this. "Right now if you don't pay utility bills on time it hurts you, but if you do, it doesn't help," she says. "This will allow [companies such as Vantage and FICO] to score a lot 0 0 Z) 0 v a Z Z) 0 Y 0 O N 16 REALTOR' NOVEMBER/DECEMBER 2015 REALTORMAG.REALTOR.ORG 3 A more people than before." Goodman also favors a closer focus on overall employment history, rather than a person's longevity with a single employer. "Take someone who's had three jobs over the last three years but has been steadily employed. That person wouldn't be able to get a mortgage [under current rules]," she says. "Rethinking those types of issues is very To ensure lower- and middle-income Americans have access to nonpredatory loans, Taylor says, the federal government needs to strengthen the Community Reinvestment Act. The 1977 law aims to ensure banks serve the credit needs of everyone in the communities where they work. The Federal Reserve Board enforces the rule, but Taylor says banks have found loopholes, such as closing branches in low-income areas. Taylor also describes a sophisticated game of hot potato, where bank A sells a mortgage that satisfies CRA requirements to bank B just in time for bank B's CRA inspection. Then bank B turns around to sell the same qualifying loan to bank C for the same reason, so they're all using one loan to secure passing grades. "Frankly, it's pretty sad;' he says. Building More Homes Another approach to improving access is to increase the supply of affordable homes. In September, NAR released a study that found new -home construction was not keeping pace with job growth in two-thirds of the 146 metro areas it studied. Increased tax incentives for builders of low- and moderate -income housing could help, but that alone won't solve the problem. The crunch is partly a result of slow permitting. "Many local and state officials are not providing what the builders are requesting;' he says. "Approving more permits will allow more building." Taylor says he has spoken with major home builders who want to alleviate the inventory crunch but can't due to permit issues. "A lot of cities and towns don't nec- essarily want to build moderate -income homes;' Taylor says, but he predicts the Supreme Court's recent ruling upholding the validity of disparate impact claims under the Fair Housing Act will make it harder for municipalities to hamper building. "It's only going to take the federal government suing the first three or four towns and emptying out their coffers before they all come up with [low- and moderate -income housing] initiatives:' Such initiatives are likely to benefit local economies in the long-term. A recent Harvard University study found that when low-wage workers are forced to migrate to lower-cost areas, the cities they leave be- hind stagnate. So without affordable hous- ing, cities such as San Francisco will find it difficult to maintain a balanced workforce. "it undermines the ability of metro areas to grow," Herbert says. "Not everyone can be a software developer. Somebody has to be doing all the other jobs that need to be done in that economy. The Bay Area would be growing much faster if it didn't have this problem:' Some problems go far deeper. Dysfunc- tion in the public education and criminal justice systems weighs more heavily on the poor. The housing and mortgage industries can do little to alleviate these deep-seated societal challenges. "The thing about the credit issues is that they're solvable:' Goodman says. "You work on what you can fix." But Taylor says policy makers should be paying attention to how these dilemmas are affecting people's ability to own a home. "The 48 -year low in home ownership ought to be the canary in the coal mine letting Wall Street and banks and others know we're reaching a tipping point:' REALTORMAG.REALTOR.ORG REALTOR' NOVEMBER/DECEMBER 2015 17 Town of Fraser Sustainability Planning Q...or Ypd+a ealad+AgY • Background & Overview • GHG Emissions Inventory Results • Government Operations • Community -wide • Outreach • Potential Actions/Scenario Planning and Goals • Work Plan/Next Steps • Technical Energy Audit Update • Questions/Discussion Q...or Ypd+r ealad+AgY Q...or Ypd+a ealad+AgY Many definitions! Town of Fraser definition: The Town of Fraser believes in and encourages sustainable development, which is defined as a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present but also for future generations. Incorporating sustainability concepts into the development review process would involve evaluating the triple bottom line, economic prosperity, environment quality and social equity (people, planet and profit). AIM kh i, rr Q... Oi Ypd+r eniAdtAgY Solid Waste Energy Use Transportation Local government policies affect all major sources of greenhouse gas emissions Q...or Ypd+r ealad+AgY ICLEI-Local Governments for Sustainability • Membership association of local governments committed to increasing sustainability • Over 1,000 local government members Leadership • Tools, resources, technical assistance Commitment • Five Milestones for Sustainability J& Planning process M�ilestone 1 Inventory ---�Mflestone 2 �:::stablish T . arget Westo e 3 Develop Climate Action Plan ------------------------------------------------------------------------------ M�ilestone 4 Implement Climate Action Plan • Document baseline emissions sources • Government Operations • Community -wide • Illustrate opportunities for emissions reductions • Enable focused and effective policymaking • Monitor progress toward emission reduction goals • 3rd party verification Q...or Ypd+r ealad+AgY • It maps Fraser's 2014 activities with GHG emissions represented as carbon dioxide equivalent (CO2e) • Boundary • Operational Control - government operations • Town of Fraser limits - community • Activity Sectors Include: • Buildings Energy Use: Electricity & Natural Gas • Transportation: Tail -Pipe Emissions • Materials and Waste • Other GHGs included: CO2i CH4, Neo • Scopes (1, 21 3 recommended) Q...or Ypd+r ealad+AgY Q...or Ypd+a ealad+AgY Inventory Boundary: All facilities, vehicles, etc. operated Stationary Sources Buildings and Facilities Public Lighting -streetlights, traffic signal Water Treatment & Transport - pumps, irrigation Refrigerants (N/A) Solid Waste from Government Operations Wastewater Treatment Facility Q...or Ypd+r ealad+AgY Mobile Emissions Vehicle Fleet Mobile Equipment (N/A) Refrigerants (N/A) Employee Commute Business Travel (in VF) Materials Production Asphalt & Cement (N/A) Copy Paper Computers & Hardware Fertilizer Five Basic Emissions Generating Activities: • Use of Electricity by the Community • Use of Fuel in Residential and Commercial Stationary Combustion Equipment (natural gas) • On -Road Passenger and Freight Motor Vehicle Travel (ADT) • Use of Energy in Potable Water and Wastewater Treatment and Distribution (also in gov ops) • Generation of Solid Waste by the Community (Laurie) Q...or Ypd+r ealad+AgY Q...or Ypd+a ealad+AgY *Includes JFF Or —40% gasoline use Q...or Ypd+a ealad+AgY Q...or Ypd+a ealad+AgY Q...or Ypd+a ealad+AgY Q...or Ypd+a ealad+AgY Q...or Ypd+a ealad+AgY • Ways to message sustainability: • Quality of life • Responsibility • Instead of "economic development', "business" or making "viable" decisions • Interested i n : • Transit • Housing • What other communities are doing 0...or Ypd+r ealad+AgY • A few facilities have taken action: • Grand Park Community Recreation Center • Reduced energy use 10-20% since opened 5 years ago • Built with LEED in mind - many sustainable features • Fraser Valley School District • ESPC in 2009, typical savings 1-v20% energy • Safeway • Won't give out store -specific information • Safeway goal to reduce emissions by 25% by 2020 from 2010 • Fraser Valley Shopping Center • Rooftop unit replacement • Fraser Marketplace Q...or Ypd+r ealad+AgY Take Aways : • Some action/engagement • Many are uninterested/unengaged • Not much knowledge of rebates - • Upfront cost an issue Xcel or M PEI • Some interest once made aware • Interest in LED parking lot lighting • Limited recycling Q...or Ypd+r ealad+AgY Natural Gas - Town of Fraser - last 5 years Program o,f participants Energy Efficient Soa - Co �Ener,gy Star Homes - Co Home Energy Audits - Co Insulation Rebates - Co XcelaergySu LowIncome Kits - CO 14 Low Income at ri ti - CO2 Refrigerator Recycling - CO 2 Residential) eaiting - CO 4 Water Heating - Co, 2 ............................................................................................................................... Grand Total 28 Q...or Ypd+r ealad+AgY Electricity - Grand & Jackson Counties, etc. (20,000 customers) • 2014 COMMERCIAL TOTALS: • Customers:9 • Amount invested: _ $14,072 • MMBTU Savings: 538.5 ` "F A I N A : N • 2014 RESIDENTIAL TOTALS: `� 4n.iui:w ilk • Customers: 488 • Amount invested: _ $37,677 • MMBTU Savings: 1,025.14 Q...or Ypd+r ealad+AgY Q...or Ypd+a ealad+AgY Local Examples • 20% below 2005 by 2020 (State of CO) • Denver, Fort Collins • Towns of Mountain Village, Norwood, Ophir and Telluride, San Miguel County • 80% below 2005 by 2050 (Boulder, CO) • Recommendation: • 20% below 2014 by 2025 Q...or Ypd+r ealad+AgY Government Operations • Energy Savings Performance Contracting at WWTP • —700,000 kWh at the WWTP (solar and aeration/mixing upgrades) • 40+% reduction in electricity, N 600 mt-0O2e • 28% reduction in gov. ops GHG emissions overall • Waste management - Recycling Resources Economic Opportunity Fund Grant • Increased public transportation Community -wide • Community Solar - 100kW (example) • Residential Energy Education/Awareness - 10% reduction • Commercial RCx - N5% reduction energy use • Residential & Commercial Rebates - lighting, heat pump water heaters • Increased public transportation (2A) Q...or Ypd+r ealad+AgY H'. 30k 25k 20k 0 15 k E 10k 0 u sk ok 2014 20191 2024, Residential Energy 0 Commercial Energy Transportation & Mobile Sources 10 Water & Wastewater 100 Solid Waste -- Original Forecast -- 20% by 2025 Goal Reduction l �-Hghchar('s Corn • Assumptions: • 5% annual growth • Clean Power Plan - emissions reduction • CAFE standards - MPG increase • Residential Energy Education/Awareness: 6% reduction • Commercial Retro -commissioning: 4% reduction • Community Solar: 3.5% reduction • ESPC at the WWTP: 2.5% reduction Q...or Ypd+r ealad+AgY • Ouray • "Greenlights" LED lightbulb program - "prebate" up to 75% of cost • Green Projects Grant Program • Sneffels Energy Board - regional effort • Green Business Certificate Program - sustainability certificate • Regional Compost Facility and Waste Campaigns • Regional Solar Garden • Educational/Outreach Program • Nederland • NedSustainable - Advisory Board, Action Plan • Sustainability Resolution, Envision 2020 • Increased tracking and managing resources • Sustainability Action Matrix Q...or Ypd+r ealad+AgY bag fees, M�FU recycling space ope,ratio�n�s '14 LA Aweiates, IcMay 6,' 015 Bs� n. 2 Q... Oi Ypd+a eniadtAgY r Energy N le J7 � c ° ° d T l� ��� Q...or Ypd+a ealad+AgY • Summary Report - January/February 2016 • Staff Training for Ongoing Tracking - January 2016 • Replicate analysis in 2016 • Resolution - Early 2016 • Commitment • Goals • Implementation Q... or Ypd+r ealad+AgY Town of Fraser Technical Energy Audit (TEA) Update Q...or Ypd+a ealad+AgY • 11 Facilities were included in the TEA: • Bus Barn • Community Center • Fraser Water Treatment Plant • Lions Park • Maryvale Water Treatment Plant • Public Works Facility • School House Park • Storage Building • Town Hall • Visitor Center • Wastewater Treatment Plant • The TEA effort has involved the following: • N70,400 ft2 of indoor space surveyed • N590 existing lighting fixtures surveyed • N50 Data logging devices deployed • 3 Years of Utility Data Analyzed • 39 Utility Meters Q...or Ypd+r ealad+AgY 0 • March 2015: TEA Executed • May 2015: TEA Kick -Off Meeting June 2015: Preliminary Presentation • Initial List of Potential Measures (+/- 30010 Accuracy) July 2015 - Ongoing: Project Delay 2016 Activities • Pre -Final Presentation (9001b Complete) • M&V Workshop • Delivery of TEA Report and ESPC Proposal • ESPC Project Contract Execution • Commence Construction Phase • Commence Performance Assurance Phase Q...or Ypd+r ealad+AgY v Q...or Ypd+a ealad+AgY • Guaranteed Outcomes: Costs, Savings & Performance • Single Point of Accountability • Project Oversight from the Colorado Energy Office • Reduced utility and operation costs • Reduced exposure to energy price volatility • Ability to blend long payback capital intensive upgrades with short payback measures • Freedom to select preferred contractors to implem( the proposed scope of work • Less reactive maintenance for equipment that has exceeded its useful life • Focused training for staff on new equipment and improved operations • Overall improvement to system reliability and equipment performance Q...or Ypd+r ealad+AgY DESIGN -BUILD ACHIEVED HIGHER QUALITY IN ALL MEASURED CATEGORIES as compared to Design -Bid -Build TOTAL PROJECT DELIVERY SPEED CONSTRUCTION SPEED UNIT COST CHANGE ORDERS SCHEDULE DELAYS Source: Construction Industry Institute (CII)/Penn State Research comprising 351 projects ranging from 5K to 2.5M square feet. The study includes varied project types and sectors. Q... Oi Ypd+r eniAdtAgY The WWTP accounts for 65% of the total annual utility costs. Therefore, we have prioritized our efforts to investigate utility and operational savings opportunities at this facility to maximize the project's overall impact. MEMIUM CornirnuinflLy Center n.,)A(iri 20/o 3 11,4c Visitor Center 1, IDA) rks Facility D/01 Fraser Water Treatment Plant 4% er Treatment Vant '5% • Aeration/Mixing Upgrades - High efficiency Jet Mixing & Aeration for digesters • Tertiary Treatment - Construct tertiary treatment system to meet new copper & phosphorus effluent requirements • WWTP 100 kW Solar PV Array - Ground mounted solar photovoltaic a rray • Process Flexibility Upgrades Total - Modifications to aeration basins to better manage peak Infiltration & Inflow (I & I) • Flow Equalization Tanks - Holding tank to help better manage short - duration periods of high I&I • Downsizing of Aerated Grit Chamber Blowers - Right -size blowers to match plant requirements • LED Lighting - High efficiency, long lasting LED lighting Q...or Ypd+r ealad+AgY • $2.8M WWTP Project: • Tertiary Treatment • Digester Jet Aeration/Mixing Upgrades • 100 kW Solar PV system • Funded over 15 year period using ESPC Model • $1M Tier II DoLA grant • $1.2M in guaranteed utility savings over 15 year period • $850k capital infusion from WWTP • $10k in MPEI utility incentives • Benefits • Meet new copper and phosphorus requirements • Avoid potential EPA fines • Guaranteed construction cost • Reduce energy use at WWTP • Reduce CO2 emissions Q...or Ypd+r ealad+AgY • Financial (Simple Payback, ROI) - This is easy but doesn't address all important factors that need to be considered for the life of the facility • Complexity - Overly complex systems may be difficult to operate and maintain and this needs to be accounted for in the overall evaluation of viability • Durability - Whatever is installed needs to be designed to last, and low first cost does not always provide for this • Persistence - Savings must not degrade over time • Sustainability- What are the environmental effects from implementing the measure. • Other Benefits - Some measures may provide tangible benefits to an entity that do not show up on a utility bill (e.g. end of life replacement, enhanced working environment, lower maintenance costs, etc.) A Tota/ Cost of Ownership approach must be followed that considers a// of the items above Q...or Ypd+r ealad+AgY • Cost ROI • Engineering & Design • Permits • Equipment & Materials • Bonding • Installation Savings —Cost Cc • Construction Management / Safety • Commissioning / Performance Assurance • Savings • Utility savings (electricity, natural gas, propane, water, sewer, etc.) • Maintenance savings (services calls/contracts, parts, lift rentals, labor, etc.) • Increased revenue (memberships, event rentals, etc.) • Expected equipment service life • Grants, rebates, other incentives Q. -or Ypd+r ealad+AgY EPC Benefit - Leverage the savings from measures with faster returns to help fund more capital intensive measures. Payback Term (Years) Measure Description Short Programmable Thermostats (0-6) Medium LED Lighting (Interior/ Exterior/ Decorative Poles) (7-12) WWTP Aeration / Mixing Upgrades Building Weatherization WWTP Solar Photovoltaic Array Long WWTP Tertiary Treatment (13-25+) WWTP Flow Equalization Tanks WWTP Process Flexibility Upgrades Town Hall Cooling Improvements Combined Proiects Typical Finance Period 12 — 20 years (Max 25 Years) Interactivity between measures is also important to consider. Q...or Ypd+r ealad+AgY • Authorize McKinstry to proceed forward with the remaining TEA activities with focus on improving the performance of the WWTP and resolving the pending compliance issues. • Approve Final TEA Report in 2016 • Approve ESPC Contract in 2016 • Construction commences in 2016 Q...or Ypd+r ealad+AgY Alison Schwabe Sustainability Program Manager, McKinstry alisonc@mckinstry.com 1 303-215-4076 Aaron Skroch Energy Engineer, McKinstry aaronsk@mckinstry.com 1 303-215-4064 0... or Ypd+r ealad+AgY Questions? • 55 years of success • Privately held • Vendor and product neutral • Fully integrated delivery approach • Emphasis on Client satisfaction • Experienced staff of 57+ in Golden, CO • In-house design -build construction expertise • National buying power • Self -perform energy engineering, building modeling, mechanical design & construction, construction management, commissioning and M&V • powerED - staff & community engagement • Energy efficiency and sustainability is what we do! 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NNMN co P- CA 90 Mi" MMM r NN CO m w fH U- fFT CA Q3 v3 6a C>? 6s 6s 6s 69 6RJ fa vi. fR o Z w w � � C C O U U w w E 0 F' 7 iC L 0 m 7 o' U o c'a 0 c GaU G C •0L C W S L lC Imp E m c c 0 m `t co - olM W yOW L C 0 E FL N O w 2 S 'o 7 co +� ca O C6 td d O 3 3 O is gym v m •� O CIS N p E E O m V E E t c 88 8 rOI O c � ci r= LLJ LLJ O m L l W t m Q m y 0 0 M. M, CD w W d Mm Z L 0 L L M L L L = L E �° m E u LL LL LJ_ Lo ca V Lectdincg tyle VVoyj Housing Ladder is Key to Denver' Continued Growth byloy Spatz, AIA John Beeble, chairman of Saunders Construction, has a 30 - year history building in Colorado and offers his perspective on Denver's future. Chris Waggett is n foLrnding principal and CEO of D4 Urban. He has over 30 years' experience in development and funds mrinagement internationally, including nine years in Den- ver. He provides insight on the criticality of the real estate ?rri.der (7ni tho motro nP iwor' roginn'S rnTntimjori ornnnnl it 2rosnerav JS: You've been a part of building Denver and had a hand in paving the road to the future. From your vantage point, what elements of our current vibrancy do you think will have the most impact on our future? JB: Denver and the metro area nave so much going for them. Mayor Hancock's vision for downtown and the airport culminated by the airport cities and growth in the metro area have created what many call nodes linked by transportation. Nodes such as downtown Denver, the Denver Tech Center, Au- rora Medical Center, Arvada and points beyond now linked by significant transportation including light rail and the new In- terstate 70 redevelopment just getting started. The collabora- tion between multiple city leaders has set the stage for smart growth that will keep it pleasurable to live here. I've lived in Arvada for nearly 30 years and the possibility of having my morning coffee in Old Town and hopping on the light rail to downtown is fantastic! One of our opportunities is to resolve the congestion to the access of our biggest asset as a region - the mountain areas and, specifically, the west -bound 1-70 access thereto, Let's face it, beyond our strong and diversified business cli- mate, it's our recreation resources that give us a big advan- tage and reason people want to live here. We have to solve the transportation challenges there. JS: Colorado and the Front Range, in particular, have seen tremendous growth and new construction in the past few years. Coming out of the recession, what is the state of the construction industry and can you speak to the construction cost increases you are seeing in the market? JB: Construction costs increases are a factor of supply and demand and I think it will be a short-term issue. During the recession, we saw a great loss of labor and talent in the trades due to a drop off in construction activity. The protracted duration of the recession resulted in those work- ers leaving this profession to seek other job opportunities. I don't think we'll ever get them back So now, we have an op- portunity to train new workers for a variety of construction trades. The benefit to the current construction growth is that the industry has good jobs to offer both new and seasoned workers, which builds industry expertise and headcount. Un- til the building cycle tapers and/or labor resources meet the demand, well see construction pricing on an upward path. JS: Looking to the future, what do you see as our greatest challenge? JB: Denver seems to be at the epicenter of the national scene. We have seen and continue to see a large increase in 22 1 HILDINC, DIALOGUE / 5EREMBER 2015 people mov good news i. offer from jc diverse busi lenge is to cr for the long and business Part of thr looked at is t ban centers built, apartrt demand, but renters wan The crazy rE we are seeing currently is just not realistic for the millennials who are maybe three to five years into their careers and finding real estate prices out of reach. We are missing affordable housing options that are between rental and single-family home prices - were miss- ing housing product in the $200K to $250K range, for instance. One of the answers is condos and owned affordable prod- uct. In the last 10 years, we really haven't seen any new condo development. This leaves a huge gap in the housing options ladder. We have to solve the legal framework that increases condo construction risk and makes it too expensive to embark upon. Developers won't develop condos. Contractors won't build them and architects won't design them. Affordable housing is key to the sustainability of growth in Denver. We are at our strongest when we have conditions that help young people grow up, get educated, have robust job opportunities, and can live and own real estate in the urban corridors. We have all of the above except the latter This is a critical challenge for our future. It is the housing ladder topic that spawned a conversation with Chris Waggett, CEO of D4 Urban and chairman of Tran- sit Alliance. JS: Pertaining to the housing stock, specifically at affordah price range, what do you see as implications from the lack of entry-level ownership options? CW: I moved here nine years ago, so I'm one of the many w migrated to Denver. We love the lifestyle, the opportunity,' business climate, openness to newcomers and the prospE of Denver's growth we've witnessed in the last nine years. It's been fas- cinating to watch the pendulum swing from employees in 2006 to employer in the downturn, and now back to the employee. Talent is criti- cal to our future and the good news is that we have lots of talent here and new talent moving here. Talent moves l to where it wants to be and employers follow that educated talent. The symbi- osis of talent and employers is import- ant to Coloradds economic engine. Right now we have lots of rental op- tions for young workers and then nothing between multifamily rental and single-family homes, whose price tags are either out of reach for most young professionals or are located in suburban locations that they don't aspire to move to until they have families. Condominium construction is virtually nonexistent, so we have a both an affordability and housing product gap. This gap is the result of constrained supply, which increas- es pricing, and we are simply pricing ourselves out of the af- fordable range. Key competitors like Dallas, Phoenix and Salt Lake City have relatively affordable median house prices of S165K to $175K compared to Denver's at S33OK and an average home price of S4O4K This is a key concern for corporate relo- cations to Colorado in terms of being an attractive place for their workforce to live. The ability to offer our young talent and our retiring baby boomers a full spectrum of affordable urban and suburban housing product types is critical to our future. I'm concerned that without it, we will see impacts on migration to Den- ver -metro region and an exodus from these two populations in search of affordable housing opportunities Lack of housing affordability will be a headwind to growth - both economic and population. Loss of population will reduce our tax base and will impact our ability to attract businesses that seek tal- ent, all of which could put us at risk in terms of continued prosperity and also in an economic downturn. We have an opportunity to look to the future and prevent a loss of young, educated talent in the next generation by offer- 1 Leoch ng the Ways ing common sense construction defects reforms that would stimulate condo development as an affordable economic pathway to home ownership and close the housing gap. Fur- thermore, focusing that development around transit is "smart growth" and what was promised to, and endorsed by, the vot- ers in FasTracks and the expansion of RTD's light-rail system. It's actually the only way that we can prudently manage pop- ulation growth and preserve our quality of life. The business and population growth that is going on in Colorado right now is amazing and it's enabled us as a region to achieve what we are today. However, we need to be proac- tive to solve the housing affordability and options problem and it requires leadership from the state, cities and regional leaders - without a collaborative effort, l'm concerned that the housing affordability and opportunity issue could derail our positive growth and our regional prosperity. It's just another reason why the Metro Mayors Caucus has been unanimously imploring the state to act on this issue as they know the im- pact it's having in their communities now and going forward. Finally, our first project is a market -rate affordable product at Alameda Station, known as Denizen. We are currently col- laborating with Medici Communities to develop a tax credit affordable product on our mixed-use Bus Barn site, west of Alameda Station, that will be connected to it via pedestrian bridge_ We would dearly like to be developing condominium product next for first-time homebuyers, but current legislative realities make this a challenging proposition.\\ ers Construction built the Triangle Building adjacent to Union Stotion Phato courtesy Sawiders Constructioi7 SEPTEMBER 2015 1 BUILOING DIALOGUE 1 23 top Of rnind (MARKET PULSE Home sales are outpacing last year's sales, but tight inventories and mortgage underwriting continue to weigh on the market. First-time buyers are slowly emerging but make up just 30 percent of buyers, down from historical norms of around 40 percent. SUPPLY & DEMAND All trend lines are from August 2014 to August 2415. Seasonally adjusted annual rate, which is the actual rate of sales for the month. multiplied by 12 and adjusted for seasonal sales differences. 2014 data reflects final seasonal adjustments. Number of existing homes on the market at the end of the month. National median. UPS AMD DOWNS OF HOME PRICES AND INCOME. Equilibrium between home prices and household income helps keep the housing market stable, although the two rarely line up. Since early 2014, the gap has been widening but at a more modest pace than in previous years as home price gains have slowed. _ Source. NAR Research Why Renters Can't Make the Move f^ r Lawrence Yun is NAR chief economist In August, rents spiked 3.6 percent over the same time a year earlier, the fastest pace since 2008. As rental vacancy rates fall across most parts of the country and more jobs are created, they will continue to jump further. This trend is both good news and bad news. Naturally, people collecting rents are thrilled with the gains they're seeing. Both large apartment investors and mom-and-pop landlords are enjoying the best conditions they've seen in years. As R EALTORSO, many of you are among the biggest beneficiaries; our surveys indi- cate about a third of you own Investment property. Of course, renters don't like forking over more money to be tenants. That's why, when rents rise strongly, it creates demand for home buying. But that isn't happening this time. in fact, the share of first-time buyers, who typically lead the move from renting to owning, continues to hover at near 30 -year lows. averaging only 2.2 percent. A decrease of 0.8 percentage points might sound small but, in an economy of $18 trillion, it has a significant, cumulative impact. Meanwhile, home prices are rising, in large part because builders aren't adding new homes for sale at a rate matching demand. Only 5 million single-family and apartment homes have been built in the last five years, even though 12.5 million Rising rents are making it difficult for jobs have been added during that period. potential first-time buyers to become owners, especially since rent increases are outpacing wage gains. That means more of a tenant's income is being eaten up in rent, making it harder to save for a down payment. The weak wage growth is a conse- quence of decade-long subpar economic growth. Historically, U.S. gross domestic product grows at a 3 percent annual rate. But since the recession, growth has been The lag in construction represents good and bad news. It's helping to keep rents and home prices up. but it's making home ownership more difficult as tenants struggle to save for the down payment they'll need to buy an increasingly costly home. While the construction outlook is unclear, until builders contribute to the overall housing stock at a more normal pace, home prices and rents will continue to rise. 12 REALTOR' NOVEMBER/DECEMBER 2015 REALTORMAG.REALTOR.ORG T Meclan Ho—ha'd l2 ;- I,c_nens 9; i aF T-1,AA Source. NAR Research Why Renters Can't Make the Move f^ r Lawrence Yun is NAR chief economist In August, rents spiked 3.6 percent over the same time a year earlier, the fastest pace since 2008. As rental vacancy rates fall across most parts of the country and more jobs are created, they will continue to jump further. This trend is both good news and bad news. Naturally, people collecting rents are thrilled with the gains they're seeing. Both large apartment investors and mom-and-pop landlords are enjoying the best conditions they've seen in years. As R EALTORSO, many of you are among the biggest beneficiaries; our surveys indi- cate about a third of you own Investment property. Of course, renters don't like forking over more money to be tenants. That's why, when rents rise strongly, it creates demand for home buying. But that isn't happening this time. in fact, the share of first-time buyers, who typically lead the move from renting to owning, continues to hover at near 30 -year lows. averaging only 2.2 percent. A decrease of 0.8 percentage points might sound small but, in an economy of $18 trillion, it has a significant, cumulative impact. Meanwhile, home prices are rising, in large part because builders aren't adding new homes for sale at a rate matching demand. Only 5 million single-family and apartment homes have been built in the last five years, even though 12.5 million Rising rents are making it difficult for jobs have been added during that period. potential first-time buyers to become owners, especially since rent increases are outpacing wage gains. That means more of a tenant's income is being eaten up in rent, making it harder to save for a down payment. The weak wage growth is a conse- quence of decade-long subpar economic growth. Historically, U.S. gross domestic product grows at a 3 percent annual rate. But since the recession, growth has been The lag in construction represents good and bad news. It's helping to keep rents and home prices up. but it's making home ownership more difficult as tenants struggle to save for the down payment they'll need to buy an increasingly costly home. While the construction outlook is unclear, until builders contribute to the overall housing stock at a more normal pace, home prices and rents will continue to rise. 12 REALTOR' NOVEMBER/DECEMBER 2015 REALTORMAG.REALTOR.ORG A Dream Too Far Owning a home is a key rung on the ladder of economic advancement. What happens if that rung remains elusive for many? By Meg White It's been almost a year since the gap between America's wealthiest and middle-inromP familia5 reached its highest level on record. The Pew Research Center found the median net worth of the nation's upper-income families ($639,400) was almost seven times that of middle-income families ($96,500), making for the widest wealth disparity since the Federal Reserve began collecting such data. The situation was ten times worse for the families earn- ing too little to Pi iter the middle Income bracket, with a 70 -to -1 ratio separating them from high-incorne families. Paul Weech. CEO of NeighborWarks, a national coalition of local affiliates working to suppoi t affordable housing and com- munity developiner it, has been watching this grap for decades. "We've always had inequality in this country [brit] the macro data has shown a growing gap," he says. "It's a fact that more and more of the wealth is flowing to fewer people." For those who care about maintaining a high home ownership rate, it's a trouble- sometrend, says National Association of RLAU"ORSO Chief Economist Lawrence Yun, "It's certainty not in the interest of broader America, and it'-, something that everyone should be concerned about." A Vicious Cycle Though no one was inmiuno to the Great Reces,ion, its impact woo felt far more acutely by kuwnrincorm- An wricans than thoso with more wealth "IFfie housing txiorri and bust really dii I widen wealth irrequxiity," .:,Llys Laurie Coodman, director of The lhtran Institute's I it losing Finance Policy Center. And an uneven recovery has only exacerbated the divide. While the stock market rebounded for investors—the latest tumult notwithstanding—many current and former home owners are still dealing with fallout dating back to 2008. Some positive economic indicators are not as reassuring as they once were. Chris Herbert, managing director of Harvard's Joint Center for Housing Studies, notes that even though the unemployment rate has decreased significantly, many of the gains have been in low-wage, part-time jobs with few benefits. 'There's stili a lot of underemployment,' Herbert says. "A 5 percent unemployment rate is not what it used to be." One of the most common ways for Americans to move up the economic ladder and invest in other wealth - generating activities—such as the stock market, paying for advanced educational opportunities, or starting a business—is by leveraging equitythey have in their homes. "We traditionally have been huge sup- porters of home ownership;' says Weech. "We see it as a way to provide stability for households but also as an asset -building strategy." John Taylor, CEO of the National Com- munity Reinvestment Coalition, an assocl- ation of about 600 organizations focused on improving access to private capital in underserved communities, agrees that those who lack the opportunity to become home owners have a weakened ability to reinvest their wealth. "If you continue to be a renter, locked out of the home ownership arena, increasingly those things are further and further out of reach" he says, noting the correlation between low home own- ership levels and high wealth inequality. "They're joined at the hip. They perpetuate each other." In the second quarter of thisyear, the home ownership rate fell to 63.5 percent, its lowest level since 1967. In particular, the relative scarcity of first time buyers sug- gests continuing challenges for an industry that relies on a continual move -up trend. "If people cannot make that first step into their starter home, it stops the whole chain reaction," Yuri says. "For a home owner in the upscale neighborhood, who are the future buyers?" Opening the Credit Box Many would-be buyers are still unable to take advantage of home affordability— fostered by low interest rates—because they can't secure mortgage approval. They entered the market on the wrong side of the "buy low, sell high" equation, and now they're locked out. "They suffered dispro- portionate lasses:' says Goodman. "Now. we see mortgage credit being unavailable exactly when it would be the most useful." Goodman says pilot programs that use less traditional credit -scoring factors— such as allowingfamily members who are not on the deed to contribute to the overall tally of household wealth and counting utility, cell phone, and rent bills toward payment history—can help correct this. "Right now if you don't pay utility bills on time it hurts you, but if you do, it doesn't help," she says "This will allow [companies such as Vantage and FICO] to score a lot 16 REALTOR' NOVEMBERir5UXMBER 2015 REALTORMAG.REALTOR.ORG more pcenplethirn hufore:' caundrnar r allo favors a closer focus on overall employment history, rather than a person's lot igevitywitlr;rsingle employer. "'lake somt.-wi a who'twd three jobs over 1 he IwA i hrot? ywirs I mt tragi; been steadily employed. f iFA l ur am wouldn't be able to f;et n rnurtgclf;r� � nndarr rr rr r ont rules]," she " Rothinkin hosr! l,yfrras of issues is Viceryirnportant" TO err mlc kiwi:r-rind middle-income Arne--ric;arre, h;avo access to nonpredatory lu;.anv, Taylor ,;.ry:., the fvd;r ral government nry_od:: tu'Ai e4 qjl hun thr, Community Weirivr: ArT i r i Act.] Ftr 11.x7 / law aims to r)r r;ure banks sr rvo tho ct o dit needs of nvcryone in thv i,ur nmur idics where they work. Thn I'erintal Ri,;-mrvo l bard enforces th- rule, but Faylor r„ ry; b, inks have found Inr,l rl rolr e�,, •,ru;h ,r,. rlur.ii q; ta-irnche,s in low-income areas. Taylor *.o describes a :,pt iir.trc atircl f;arrrre of 1101 potato, where b. ink A';rell'.:iworir;:ri(r 1lratsatisfies CRA requirements to bank U just in time fnr hank Wr; CRA inra-)er:•t.iw i. Then bank 1 i ti rens ai our it I to -:r rl1 I I ju r;+;arae qualifying It ran to bank f: fol. t1V''01A W r(Nson, so thr;y'n: ifl i r.ir i) ono loan i ti r r;ecure passing ;;r71rlf=."FrotMy. it'riprr4ty-;ad;'hesays. tau -riding Marc Hors es Aro rther apps um1 i lir it oproving access is to itu.rre;,r;r; I I w :.ut q ply of affordable homes. Irl fir-pt(!rnhr•r, NAIL relfw%urf a study that f0urud nrrw hourr: r:urr,l, urtiun was not keeping (race with job growth in two-thirds of the TAG nitro areas it studied. Iru.n-.,;e.r•cf I:ax ii ii.wil ive,; for builders of low- and n'ioder ote-iticorno housing Cr)Wdlir!Ipi I'PW th,rt;ri0nr,-woritsofvethe lirublr:rn.I1rr:i:niii;Iir� I wr fly a result of ,.Ir,&pr,roriifirr; "lvl;ariylocolmirlstate ofii�xh, irf;rrrr1provirdiiigwhat the. builders are, r ertueriting," he says. "Approving more pr m nil -; will; illow Iroro III rildr ig." Taylor says he has spoken with major home builders who want to alleviate the inventory crunch but can't due to permit issues. "A lot of cities and towns don't nec- essarily Want to build moderate-incorne homes," Taylor says, but he predicts the Supreme Court's recent ruling upholding the validity of disparate impact claims under the Fair Housing Act will make it harder for municipalities to hamper building. "It's only going to take the federal government suing the first three or four towns and emptying out their coffers before they all come up With [low- and moderate -income housing] initiatives:' Such initiatives are likely to benefit local economies in the long-term. A recent Harvard University study found that when low-wage workers are forced to migrate to lower-cost areas, the cities they leave be- hind stagnate. So without affordable hous- ing, cities such as San Francisco will find it difficult to maintain a balanced workforce. "it undermines the ability of metro areas to grow;" Herbert says. ''Not everyone can be a software developer. Somebody has to be doing all the other jobs that need to be done in that economy. The Bay Area would be growing much faster if it didn't have this problem:' Some problems go far deeper. Dysfunc- tion in the public education and criminal justice systems weighs more heavily on the poor. The housing and mortgage industries can do little to alleviate these deep-seated societal challenges. "The thing about the credit issues is that they're solvable;' Goodman says. "You work on what you can fix " But Taylor says policy makers should be paying attention to how these dilemmas are affecting people's ability to own a home "The 48 -year lour in home ownership ought to be the canary in the coal mine letting Wall Street and banks and others know we're reaching a tipping point:' L-1 REALTOWAG. REAi T(JP.URG REALTOR' NOVEMBER/DECEMBER 2015 17