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HomeMy WebLinkAboutPACKET Town Board 2021-08-24The Mission of the Town of Estes Park is to provide high‐quality, reliable services for the benefit of our citizens, guests, and employees, while being good stewards of public resources and our natural setting. The Town of Estes Park will make reasonable accommodations for access to Town services, programs, and activities and special communication arrangements for persons with disabilities. Please call (970) 577-4777. TDD available. BOARD OF TRUSTEES - TOWN OF ESTES PARK Tuesday, August 24, 2021 7:00 p.m. Board Room 170 MacGregor Avenue Estes Park, CO 80517 In Person Meeting – Mayor, Trustees, Staff and Public ADVANCED PUBLIC COMMENT By Public Comment Form: Members of the public may provide written public comment on a specific agenda item by completing the Public Comment form found at https://dms.estes.org/forms/TownBoardPublicComment. The form must be submitted by 12:00 p.m., Tuesday, August 24, 2021. All comments will be provided to the Board for consideration during the agenda item and added to the final packet. OPTIONAL REMOTE PUBLIC PARTICIPATION DURING BOARD MEETING Remote options for participation in the meeting will be available by call-in telephone option or online via Zoom Webinar which will be moderated by the Town Clerk’s Office. Instructions are also available at www.estes.org/boardsandmeetings by clicking on “Virtual Town Board Meeting Participation”. Individuals participating in the Zoom session should also watch the meeting through that site, and not via the website, due to the streaming delay and possible audio interference. CALL-IN (TELEPHONE OPTION):877-853-5257 (toll-free) Webinar ID: 982 1690 2040 ONLINE (ZOOM WEBINAR): https://zoom.us/j/98216902040 Webinar ID: 982-1690-2040. PLEDGE OF ALLEGIANCE. (Any person desiring to participate, please join the Board in the Pledge of Allegiance). AGENDA APPROVAL. PUBLIC COMMENT. (Please state your name and address). TOWN BOARD COMMENTS / LIAISON REPORTS. TOWN ADMINISTRATOR REPORT. CONSENT AGENDA: 1. Bills. 2. Town Board Minutes dated August 10, 2021 and Town Board Study Session Minutes dated August 10, 2021. 3. Audit Committee Minutes dated August 11, 2021. Prepared 08-13-2021 *Revised Page 1 NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. 4. Estes Park Planning Commission Minutes dated June 15, 2021 and Estes Park Planning Commission Study Session Minutes dated July 20, 2021 (acknowledgement only). 5. Estes Park Comprehensive Plan Advisory Committee Minutes dated July 22, 2021 (acknowledgement only). 6. Policy 208 - Naming of Town-Owned Parks, Open Spaces, and Facilities. 7. Resolution 63-21 Approving an Intergovernmental Agreement with CDOT for FTA 5339(b) Grant Funding for the Design of Two Large Vehicle Bays to Store Two Electric Battery Trolley Buses (CDOT PO #491002610). ACTION ITEMS: 1. ACCEPT DELIVERY OF THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDING DECEMBER 31, 2020. Director Hudson. Formally accept the Haynie & Company audit of the Comprehensive Annual Financial Report (CAFR), including the Single Audit Reports, for the year ended December 31, 2020. 2. APPOINTMENT OF HAYNIE & COMPANY TO PERFORM THE AUDIT OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING DECEMBER 31, 2021. Director Hudson. Appointment of Haynie & Company to perform the Town’s audit of the 2021 CAFR, which will be the second year of a five-year engagement. 3. UTILITIES REORGANIZATION AND STAFFING INCREASE. Director Bergsten. The increased workload from the current multimillion-dollar capital projects and Trailblazer Broadband requires additional staffing and a new structure. REPORTS AND DISCUSSION ITEMS: 1. VACATION HOME PHILOSOPHY. Town Clerk Williamson/Attorney Kramer. Continue the August 10, 2021 Town Board Study Session discussion related to transferability, residential cap, and potential revenue sources. REQUEST TO ENTER EXECUTIVE SESSION: For a conference with an attorney for the Board for the purposes of receiving legal advice on specific legal questions - Section 24-6-402(4}(b}, C.RS., and for the purpose of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and/or instructing negotiators - Section 24-6- 402(4}(e}, C.RS. - Regarding the Water Service Agreement with the YMCA of the Rockies. ADJOURN. Page 2 Q)__TownofEstesParkSIGN-INSHEETFORPUBLICCOMMENTIndividualswishingtobeheardduringPublicCommentproceedingsareencouragedtobepreparedandwillgenerallybelimitedto()minutesinordertoalloweveryonetheopportunitytobeheard.PublicCommentsareexpectedtobeconstructive.WrittencommentsarewelcomeandshouldbegiventotheTownClerkpriortothestartofthemeeting.TownBoardMeetingAugust24,2021GENERALPUBLICCOMMENTTOICF-FORNAME(PLEASEPRINT)STREETADDRESSA-AGAINST,31yc1(Vkx\‘w\9I-ä4ozj32CA+A(pV191W&t5)(4)1011121314Page 3       Page 4 Town of Estes Park, Larimer County, Colorado, August 10, 2021 Minutes of a Regular meeting of the Board of Trustees of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town of Estes Park on the 10th day of August, 2021. Present: Wendy Koenig, Mayor Patrick Martchink, Mayor Pro Tem Trustees Carlie Bangs Marie Cenac Barbara MacAlpine Scott Webermeier Cindy Younglund Also Present: Travis Machalek, Town Administrator Dan Kramer, Town Attorney Jackie Williamson, Town Clerk Reuben Bergsten, Utilities Director Chris Eshelman, Water Plant Superintendent and Deputy Town Clerk Beers Absent: None Mayor Koeing called the regular meeting to order at 7:00 p.m. and all desiring to do so, recited the Pledge of Allegiance. AGENDA APPROVAL. It was moved and seconded (Cenac/Bangs) to approve the Agenda, and it passed unanimously. PUBLIC COMMENTS. None. TRUSTEE COMMENTS. Trustee comments were heard and have been summarized: Behavioral Health Services would be considering the distribution of $2.5 million in impact funds across applications requesting a total of $4.7 million in grants; and a presentation was attended through the Fort Collins Rescue Mission who operate the Harvest Farm program for addiction rehabilitation for adult males which has been successful. TOWN ADMINISTRATOR REPORT. None. CONSENT AGENDA: 1.Bills. 2.Town Board Minutes dated July 27, 2021 and Town Board Study Session Minutes dated July 27, 2021. 3.Parks Advisory Board Minutes dated May 20, 2021 (acknowledgement only). 4. Transportation Advisory Board Minutes dated June 16, 2021 (acknowledgement only). 5.Resolution 62-21 Setting a Show Cause Liquor Hearing for Galex LLC dba Chelitos Mexican Restaurant, 145 E. Elkhorn Avenue, Hotel and Restaurant Liquor License on September 14, 2021. It was moved and seconded (Martchink/Webermeier) to approve the Consent Agenda, and it passed unanimously. DRAFTPage 5 Board of Trustees – August 10, 2021 – Page 2 ACTION ITEMS: 1. ORDINANCE 11-21 AMENDING CHAPTER 13.24 OF THE ESTES PARK MUNICIPAL CODE REGARDING AGREEMENTS TO PROVIDE RAW WATER. Mayor Koenig opened the public hearing. Director Bergsten stressed the importance of responsible management of raw water resources. Staff foresees an increase in the number of replacement water requests as the State Water Commissioner increases their effort to audit augmentation plans which include private wells. The raw water lease agreements are beneficial to the local economy and the surrounding communities although they tie up Town water rights. Staff proposed requiring Town Board approval of raw water agreements lasting longer than one year and a provision which states staff shall not process agreements for properties which could reasonably connect to the Town’s water system. Board comments have been summarized: Questioned what alternatives exist outside of connecting to Town water resources; whether the change would be retroactive, and who are considered typical clients requesting raw water resources. Attorney Kramer stated augmentation plans which are solely for agricultural or irrigation purposes are exempt due to generally not requiring treated water. The Mayor closed the public hearing and it was moved and seconded (Martchink/Younglund) to approve Ordinance 11-21, and it passed unanimously. REQUEST TO ENTER EXECUTIVE SESSION: It was moved and seconded (Younglund/MacAlpine) to enter into Executive Session for discussion of specialized details of security arrangements or investigations – section 24-5-402(4)(d). C.R.S. – Regarding Board Security, and it passed unanimously. Mayor Koenig recessed the meeting at 7:20 p.m. The Board entered executive session at 7:35 p.m. and concluded the executive session at 8:38 p.m. Mayor Koenig reconvened the regular meeting at 8:40 p.m. Whereupon Mayor Koenig adjourned the meeting at 8:40 p.m. Wendy Koenig, Mayor Bunny Victoria Beers, Deputy Town Clerk DRAFTPage 6 Town of Estes Park, Larimer County, Colorado August 10, 2021 Minutes of a Study Session meeting of the TOWN BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in the Board Room in said Town of Estes Park on the 10th day of August, 2021. Board: Mayor Koenig, Mayor Pro Tem Martchink, Trustees Bangs, Cenac, MacAlpine, Webermeier, and Younglund Attending: All Also Attending: Town Administrator Machalek, Assistant Town Administrator Damweber, Town Attorney Kramer, Recording Secretary Disney, Town Clerk Williamson, and Manager Solesbee Absent: None. Mayor Koenig called the meeting to order at 4:45 p.m. VACATION HOME PHILOSOPHY. Town Clerk Williamson and Town Attorney Kramer provided background on the vacation home philosophy and sought direction from the Town Board on transferability, the cap for residentially zoned properties, taxes and fees on vacation homes, and provided a brief update on the life safety inspection requirements for window wells. The Board discussed the number of licenses, waitlist requirements, complaints on residentially zoned vacation homes, non-compliant short-term rentals, commercial property taxes for short-term rentals, costs of a fee study, current licensing fees, occupation taxes, the value of a license when selling a property, the amount of revenue which could be potentially generated, and the level of stress on staff to remove transferability. A continuation of the discussion was scheduled as a report and discussion item for the August 24, 2021 Town Board meeting. MID-SEASON UPDATE ON PAID PARKING. Manager Solesbee provided a mid-season update on paid parking and highlighted successes of the increased usage of free parking areas, decreased traffic congestion, and budgeting. She stated improvements could be made with signage, transaction times, and staffing. The Board discussed a survey of business owners following the paid parking season, effects of paid parking on Town staff and volunteers, the Wi-Fi stations, and real-time availability of shuttles. SEMI-ANNUAL COMPLIANCE REVIEW WITH BOARD GOVERNING POLICIES – POLICY 1.10 SELF-MONITORING OF THE BOARD. Mayor Koenig reported compliance with Policy 1.10 Self-Monitoring, requiring semi-annual review by the Board. TRUSTEE & ADMINISTRATOR COMMENTS & QUESTIONS. None. FUTURE STUDY SESSION AGENDA ITEMS. Town Administrator Machalek requested and it was determined to schedule the Larimer County Early Childhood Policy for September 14, 2021, the Fund Balance Policy Review and the Future Fire Safety in the Estes Valley for September 28, 2021, and the Trailblazer Broadband Project Update for October 12, 2021. There being no further business, Mayor Koenig adjourned the meeting at 6:40 p.m. Kimberly Disney, Recording Secretary DRAFTPage 7 Town of Estes Park, Larimer County, Colorado, August 11, 2021 Minutes of a Regular meeting of the AUDIT COMMITTEE of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Municipal Building and Virtually in said Town of Estes Park on the 11th day of August, 2021. Committee: Mayor Koenig, Mayor Pro Tem Martchink, Trustee MacAlpine, Town Administrator Machalek, Finance Director Hudson, and Accounting Manager Garcia Attending: Mayor Koenig, Mayor Pro Tem Martchink, Trustee MacAlpine, Town Administrator Machalek, Finance Director Hudson, Accounting Manager Garcia, Deputy Town Clerk Beers, and Auditors Ty Holman and Abbie Irvine Absent: None Mayor Koenig called the meeting to order at 4:01 p.m. 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) AND AUDIT REVIEW. Ty Holman and Abbie Irvine, Hayine & Company reviewed the audit scope, required communication in accordance with audit standards, financial highlights and new accounting pronouncements and general observations. Irvine stated the Town’s net position was positive in 2020 while medical claims were higher than anticipated. Clarification was requested on audit adjustments related to pension and other post- employee benefits (OPEB) reporting. Director Hudson stated the audit would be presented to the Town Board on August 24, 2021 as an action item. CONSIDER APPOINTMENT OF HAYNIE & COMPANY TO PERFORM THE 2021 AUDIT. Director Hudson stated the audit process in 2020 was completed without an extension for the first time in several years and recommended appointment of Hayine & Company to perform the 2021 audit which the committee was in agreement. There being no further business, Mayor Koenig adjourned the meeting at 4:45 p.m. Bunny Victoria Beers, Deputy Town Clerk DRAFTPage 8 1 Town of Estes Park, Larimer County, Colorado, June 15, 2021 Minutes of a Regular meeting of the ESTES PARK PLANNING COMMISSION of the Town of Estes Park, Larimer County, Colorado. Meeting held VIRTUALLY in said Town of Estes Park on the 15 day of June 2021. Committee: Chair Matt Comstock, Vice-Chair Matthew Heiser, Commissioners Joe Elkins, Howard Hanson, Janene Centurione. Attending: Chair Comstock, Vice-Chair Heiser, Commissioner Centurione, Commissioner Elkins, Commissioner Hanson, Director Randy Hunt, Senior Planner Jeff Woeber, Planner II Alex Bergeron, Planning Technician Charlie Rugaber, Recording Secretary Karin Swanlund, Town Attorney Dan Kramer, Town Board Liaison Barbara MacAlpine, Pavement Manager Ryan Barr, Public Works Director Greg Muhonen Absent: none Chair Comstock called the meeting to order at 1:30 p.m. Also attending were Matt Ashby and Mike Scholl, Ayres Associates consultants. AGENDA APPROVAL It was moved and seconded (Heiser/Hanson) to approve the agenda. The motion passed 5-0. PUBLIC COMMENT. None CONSENT AGENDA APPROVAL It was moved and seconded (Heiser/Elkins) to approve the consent agenda. The motion passed 5-0. ACTION ITEMS 1. CODE AMENDMENT: WIRELESS TELECOM FACILITIES Senior Planner Woeber Staff requested this item be continued to the July 20, 2021 meeting. It was moved and seconded (Heiser/Hanson) to continue the Code Amendment to July 20, 2021. The motion passed 5-0. Page 9 2 2. LOCATION AND EXTENT: BIG THOMPSON RECREATION AREA Planner II Bergeron The Town of Estes Park Public Works Department, through its Parks division, proposes to install three new picnic shelters (each with a table and benches), a climbing boulder with a safety pad, a garden, a new walkway, and some rock steps (for river access) at the Big Thompson Recreational & Picnic Area. The Town's Public Works Department pursued and was awarded a Great Outdoors Colorado (GOCO) grant. The Parking Structure, which went through a development plan review and approval process (along with a variance process) in 2014, received a formal Location and Extent (L&E) Review. For that reason is included in this review. No further improvements are proposed in this L&E Review or modified Development Plan for the completed Parking Structure. Staff recommended approval of the location and extent of the public improvements and the associated revised Development Plan. Vice-Chair Heiser asked if the Town has authority to regulate the Bureau of Reclamation property. Planner Bergeron confirmed that the federal government gave authorization through a Special Use Permit, which is understood as the controlling document. Attorney Kramer stated that any property in town limits could be regulated under our development code, with some special exemptions. The internal review produced a staff comment noting that an underground power line runs through the site. Pavement Manager Barr confirmed that the location is known and structures will not be built over the buried power line. Attorney Kramer noted that this review is to make sure there is no impact on the neighborhood or anything missed in the study by staff. In response to a question on the matter, Public Works Director Muhonen stated that separation between the west driveway and the proposed park area is unnecessary as there is no active traffic on that driveway. It is only used by the Bureau of Land Management during the dredging of the river. Heiser asked for clarification on prior conditions of approval from the former Planning Commission and Board of Adjustment were met and Director Hunt confirmed that the Parking Garage does have a Certificate of Occupancy. PUBLIC COMMENT: none It was moved and seconded (Hanson/Centurione) to APPROVE the described Location and Extent Review and the associated modified Development Plan. The motion passed 5-0. DISCUSSION ITEMS: DOWNTOWN BUILDING HEIGHT: Constultants from Ayres Associates Mike Scholl and Matt Ashby reviewed the why/what/how of the Code amendment under consideration to allow a greater building height in the CD (Downtown Commercial) Zone District. This includes 42 feet as use-by- Page 10 3 right, and the review of proposed design guidelines for buildings above 30 feet, all exclusive to the CD zone district. In addition, stepbacks, building articulation, building materials and transparency were discussed. It was questioned if articulation and materials need to be regulated as they could be a matter of style preference. There was considerable discussion on developers' needs, floodplains and the fundamental goal of increasing building height. Expanding downtown inventory with economic development and financial incentives are needed. In conclusion, there is some desire for simple articulation and transparency and no desire to regulate the use of building materials. A final discussion can take place in the July meeting, with a possible public hearing in August. WILDFIRE MITIGATION: A Memorandum of Understanding between Headwaters Economics, Inc. and the Town hasa been agreed upon to guide the Town’s participation in the latter’s Community Planning Assistance for Wildfire (CPAW) program. This includes strategic communication, practical assistance with code rewrites, and partnerships development (RMNP, USFS). Director Hunt also thanked the Estes Park Middle School 6th graders for their thoughtful letter regarding wildfire mitigation. COMPREHENSIVE PLAN UPDATE: Meetings are scheduled on the 2nd and 4th Thursdays at 9:00 a.m. Matt Heiser is the Chair of CompPAC, and Bob Leavitt is the Vice-Chair. The Planning Commission will be sent links to the CompPAC meeting materials. Public engagement strategies and large-scale public meetings are planned, with smaller focus groups and individualized outreach meetings looking for one-on-one ideas. On August 26, the CompPAC meeting will be a joint meeting with EPPC and LCPAC. Voluntary homework for Planning Commission: two issues you think are most important for the Comp Plan to address and two keywords you would like to see in the Vision Statement. BYLAWS UPDATE: Attorney Kramer and Town Clerk Williamson have updated the template. One change is the numbers used for a quorum. There were no outstanding concerns from the Planning Commission. REPORTS: June 24 will be a meet-and-greet for the four Community Development Director candidates from 5:30-6:30 at the Museum. There being no further business, Chair Comstock adjourned the meeting at 4:05 p.m. Page 11 4 Matt Comstock, Chair Karin Swanlund, Recording Secretary Page 12 Town of Estes Park, Larimer County, Colorado July 20, 2021 Minutes of a Study Session meeting of the PLANNING COMMISSION of Estes Park, Larimer County, Colorado. Meeting held virtually on Zoom. Commission: Chair Matt Comstock, Vice-Chair Matthew Heiser, Commissioners Joe Elkins, Howard Hanson, Janene Centurione Attending: Centurione, Elkins, Heiser, Hanson Also Attending: Director Randy Hunt, Senior Planner Jeff Woeber, Planner II Alex Bergeron, Town Board Liaison Barbara MacAlpine, Chief Building Official Gary Rusu, Engineer Jennifer Waters, Recording Secretary Karin Swanlund Absent: Chair Comstock Acting Chair Heiser called the meeting to order at 1:30 p.m. This study session was held virtually via ZOOM and was streamed and recorded on the Town of Estes Park YouTube channel. Heiser spoke on the joint study session held between the Planning Commission and Town Board on July 8, 2021. The main topic centered around code changes and support for continuing them while the Comprehensive Plan is being updated. Trustee MacAlpine commented that the meeting was valuable and available to view on the town website. Director Hunt noted that a semi-annual meeting would be beneficial. Director Hunt introduced Mike Scholl, Ayres Associates consultant for the code amendment on Downtown Building Height. Mike reviewed the final draft for the code amendment via a PowerPoint presentation, with the main content focusing on clear guidelines for projects above 30 feet in height. The proposed timeline would be a Planning Commission vote in August and Town Board in September. Engineer Jennifer Waters described what will be required for building in the floodplain and insurance premiums related to those regulations noting that floodplain performance standards are for safety, not to restrict building. Commissioner Elkins expressed concerns with corner lot articulation. Commissioners Hanson and Centurione requested that the short-term rental wording not exclude accommodations. Town Attorney Kramer will review the language on the final Code Amendment. Hanson also asked for the Lidar data on current downtown building height be reviewed prior to a vote. Heiser requested bringing this code amendment to a vote at the August 17 meeting. Chief Building Official Gary Rusu spoke on building inspections in the downtown corridor and the possibility of a building collapse. Concerns in Estes Park are the age of buildings, structural issues, and fire hazards. Adopting the 2021 Building Code, which includes the Property Maintenance Code, would allow vacant buildings to be inspected prior to occupation. Life safety is the primary role of the building department. Director Hunt reviewed the CompPac meetings that have taken place to date. Different department heads have been attending guest speakers, and Hunt encouraged the Planning Commission to watch these meetings, either live or recorded. He also reminded the Commission about scheduling one-on-one interviews with Logan Simpson and reviewing the 1996 Comprehensive Plan. Stemming from the Joint Study Session, Hunt also spoke on prioritizing housing options, suggesting a “floating” multi-family zone district due to the lack of developable land and large lot zones resulting in “sprawl development.” Commissioner Elkins described a concept called transferrable development rights and asked if that would be possible in Estes Park. Attorney Kramer said he wouldn’t rule it out, but it may be a Page 13 Planning Commission Study Session July 20, 2021 – Page 2 solution to a different type of problem requiring a significant undertaking. Centurione suggested looking up past housing studies and comparing data. Heiser encouraged all thoughts and ideas related to the housing crisis to be voiced. Planner II Bergeron introduced a possible new code amendment relating to Accessory Dwelling Units (ADUs). The time is right for ADUs as a use-by-right in certain zoning districts. Allowing long-term rentals via ADU’s will considerably help the housing situation. Upcoming: Study Session and regular meeting on August 17. A joint meeting with PC, EVPAC and CompPac on August 26. Acting Chair Heiser adjourned the Study Session at 4:20 p.m. Karin Swanlund, Recording Secretary Page 14 Town of Estes Park, Larimer County, Colorado, July 22, 2021 Minutes of a Regular meeting of the Comprehensive Plan Advisory Committee of the Town of Estes Park, Larimer County, Colorado. Meeting held via ZOOM in said Town of Estes Park on July 22 2021. Committee: Chair Matthew Heiser, Vice-Chair Bob Leavitt, Members David Bangs, Eric Blackhurst, Chuck Cooper, Kirby Nelson- Hazelton, John Schnipkoweit, Dave Shirk, Karen Thompson, Rose Truman, David Wolf, Matt Comstock, Mike Kennedy Also Attending: Community Development Director Randy Hunt, Larimer County Community Development Director Lesli Ellis, Trustee Barbara MacAlpine, Recording Secretary Karin Swanlund Absent: Member Hazelton Chair Heiser called the meeting to order at 9:00 a.m. APPROVAL OF AGENDA: It was moved and seconded (Kennedy/Cooper) to approve the agenda. The motion passed with a visual thumbs-up vote. PUBLIC COMMENT. None ACTION ITEM: Approval of Minutes from July 8, 2021 It was moved and seconded (Blackhurst/Leavitt) to approve the minutes. The motion passed with a visual thumbs-up vote. DISCUSSION ITEMS: (all comments have been summarized) 1. Fire Chief David Wolf discussed the Estes Valley Fire Protection District (EVFPD) origins, the scope of services, and the fire problem in the Estes Valley. The EVFPD consists of six full-time employees and 40 volunteers and has been around since 1907. In 2010, they became a “District.” Current projects consist of Community Wildfire Protection Plan (CWPP), participation in Community Planning Assistance for Wildfire (CPAW) program, Fire Wise, and the “Ready, Set, Go!” program. All of the Estes Valley is in the Wildland Urban Interface (WUI). Landscaping codes should be reviewed and reformed to help prevent fires. Adoption of the Property Maintenance Code would allow for proactive fire hazard mitigation. Future needs are expanding services, updating fire codes, wildfire mitigation, sorting yard/slash collection, and maintaining equipment and staff. The most significant prevention piece is educating and working with the public. 2. On July 8, the Planning Commission and the Town Board had a joint meeting to discuss code amendments during the Comprehensive Plan rewrite. Moving ahead as needed was the overall consensus. Coordination between boards regarding significant code changes would be beneficial. Code rewrites aren’t an either/or scenario, but a joint effort and cross-communication is essential. Chair Heiser reviewed the current code amendments the Planning Commission is discussing, including downtown building height and zone density changes to help the housing situation. 3. Director Hunt informed the Committee that a poll would be sent to decide on in-person meetings beginning in August. There is a high probability that the Planning Commission and Town Board will be invited to the August 26 meeting. Page 15 CompPAC – July 22, 2021 – Page 2 There being no further business, Chair Heiser adjourned the meeting at 10:50 a.m. Karin Swanlund, Recording Secretary Page 16 TOWN ADMINISTRATOR’S OFFICE Memo To: Honorable Mayor Koenig Board of Trustees From: Town Administrator Machalek Date: August 24, 2021 RE: Policy 208 – Naming of Town-Owned Parks, Open Spaces, and Facilities (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER: _Policy_ QUASI-JUDICIAL YES NO Objective: Town Board consideration of Policy 208 – Naming of Town-Owned Parks, Open Spaces, and Facilities. Present Situation: The Town Board adopted Policy 205 – Naming of Town-Owned Parks, Open Spaces, and Facilities on March 8, 2016. Unfortunately, policy number 205 was already in use and we now have two policies using that same number. Additionally, although the Town Board minutes from March 8, 2016 reflect the approval of the naming policy, staff cannot find the final signed copy. Proposal: Staff is asking the Town Board to approve Policy 208 in order to clean up the policy numbering and prevent any confusion stemming from having two Policy 205s. There are only three changes from the previously adopted Policy 205 to Policy 208: • Correction of policy number from Policy 205 to Policy 208; • Updating the policy signatory to Mayor Koenig; and • Updating the footer date and department. Advantages: • Updates policy numbering to avoid confusion. Disadvantages: • None Action Recommended: Page 17 Staff recommends the Town Board approve Policy 208 – Naming of Town-Owned Parks, Open Spaces, and Facilities. Finance/Resource Impact: No direct financial impact. Level of Public Interest Low Sample Motion: I move to approve Policy 208. Attachments: 1. Policy 208 Page 18 Policy 208 Naming of Town-Owned Parks, Open Spaces, and Facilities 08/24/2021 Revisions: 0 Town of Estes Park, Town Administrator’s Office Page 1 of 6 Effective Period: Until superceded Review Schedule: Biennially Effective Date: 08/24/2021 References: Governing Policies 1.1.3 and 1.3.2 ADMINISTRATION 208 Naming of Town-Owned Parks, Open Spaces, and Facilities 1.PURPOSE To establish a consistent and systematic approach for selecting names for Town-owned parks, open spaces, and facilities. 2. POLICY Maintaining consistent and understandable procedures for naming and re-naming Town-owned parks, open spaces, and facilities is crucial for identification purposes. These names aid emergency response, help to develop a sense of place, and help to honor community leaders. The Town of Estes Park will follow the procedures outlined in this policy to name or re-name any Town-owned park, open space, or facility. When choosing a name for a Town-owned facility, park, or open space, the Town will endeavor to ensure that such names: (1) are appropriate; (2) aid in the identification and location of the property or facility in question; and (3) encourage the donation of lands, facilities, and funds to the Town. 3.PROCEDURE a.Naming a New Town-Owned Park, Open Space, or Facility i.Working Name for Facilities under Consideration or Construction All new facilities under consideration or construction will be given a working name by staff. ii.Naming Criteria In order to be considered, proposed names for a new Town-owned park, open space, or facility shall be reflective of at least one of the following criteria: 1)Specific purpose of the facility (e.g., Senior Center, Museum) 2)Geographic location 3)Prominent geographic feature or local reference point 4)Adjoining subdivision/community 5)Historical feature Attachment 1 Page 19 Policy 208 Naming of Town-Owned Parks, Open Spaces, and Facilities 08/24/2021 Revisions: 0 Town of Estes Park, Town Administrator’s Office Page 2 of 6 6) A deceased individual (see section 3.a.iii) 7) An individual or group via a donation or sponsorship agreement (see section 3.a.iv) iii. Naming a Park, Open Space, or Facility after a Deceased Individual Consideration shall be given to the naming of a Town-owned park, open space, or facility after a deceased individual only if both of the following conditions have been met: 1) The individual has been deceased for at least three (3) years; and 2) The individual has made significant contributions to the Town through a long-term commitment to the residents and guests of the Town of Estes Park. iv. Individual or Group Donations or Sponsorships Consideration shall be given to the naming of a Town-owned park, open space, or facility after a group or individual based on a donation or sponsorship only if such donation or sponsorship comprises 75 percent or more of the overall value of the park, open space, or facility. This provision shall not apply to any naming rights sold for the Estes Park Events Complex. v. Sponsorship Naming Rights Sponsorship naming rights made by contract, for a specific period of time, are exempt from this policy. vi. Naming Process The naming of a new Town-owned park, open space, or facility will follow the process below: 1) Public Announcement: When the Town signs a contract to construct a building or purchase land to be used as a park or open space, the Town Clerk’s Office will publish a legal notice in the paper of record inviting the public to submit prospective names for the building or park/open space. The deadline for submitting names will be two weeks from the date of the printed legal notice. The legal notice shall refer to the facility or property by description, in addition to common/informal names. The Public Information Office will also notify the community of the opportunity to participate through a news release and other appropriate channels. 2) Review for Facilities: Within two weeks of the deadline to submit names, the Town Clerk will submit to the Town Board all of the names received that meet the criteria in section 3.a.ii. 3) Review and Recommendation for Parks/Open Space: Within two weeks of the deadline to submit names, the Town Clerk will submit to the Parks Advisory Board all of the names received that meet the criteria in section Page 20 Policy 208 Naming of Town-Owned Parks, Open Spaces, and Facilities 08/24/2021 Revisions: 0 Town of Estes Park, Town Administrator’s Office Page 3 of 6 3.a.ii. The Parks Advisory Board will review the submitted names, and make a recommendation to the Town Board. 4) Notice of Submitted Names - Facilities: A legal notice shall be published in the paper of record as soon as reasonable after the Town Clerk submits the list of qualifying names to the Town Board. This legal notice shall include the qualifying proposed names, a description of the facility to be named, and the time and place of the Board Meeting at which the recommendation will be considered. The legal notice must be published at least 30 days prior to the Town Board meeting where the recommendation will be considered. The Public Information Office will also notify the community of the opportunity to participate through a news release and other appropriate channels. 5) Notice of Recommendation – Parks/Open Space: A legal notice shall be published in the paper of record as soon as reasonable after the Parks Advisory Board submits its recommendation to the Town Board. This legal notice shall include the proposed name, a description of the park/open space to be named, and the time and place of the Board Meeting at which the recommendation will be considered. The legal notice must be published at least 30 days prior to the Town Board meeting where the recommendation will be considered. The Public Information Office will also notify the community of the opportunity to participate through a news release and other appropriate channels. 6) Town Board Review and Approval: Upon receipt of the recommendation from the Leadership Team, the Board will consider the recommended name at a regular Board meeting as an action item. b. Re-Naming a Town-Owned Park, Open Space, or Facility i. Conditions The existing names of Town-owned parks, open spaces, and facilities are deemed to have historic recognition. The Town of Estes Park will not change the name of any existing Town-owned park, open space, or facility unless: (1) there are compelling reasons to consider such change; (2) there is a thorough study of the change consisting of a public hearing at a regularly scheduled Town Board meeting; and (3) there is a unanimous vote of the Town Board. Additionally, the Town Board will consider renaming a Town-owned park, open space, or facility to commemorate a person or persons only when said person or persons: (1) is/are deceased, (2) has/have made a major, overriding contribution to the Town; (3) has/have made contributions that have not been honored in another manner; and (4) has/have notable historic significance to the Estes Valley. Potential re-naming applicants should consider other appropriate options to memorialize individuals including, but not limited to, plaques, memorial benches, and memorial trees. Page 21 Policy 208 Naming of Town-Owned Parks, Open Spaces, and Facilities 08/24/2021 Revisions: 0 Town of Estes Park, Town Administrator’s Office Page 4 of 6 ii. Requests to Re-Name a Town-Owned Park, Open Space, or Facility Any requests to re-name a Town-owned park, open space, or facility shall use the following procedure: 1) The applicant shall submit a completed “Request to Re-Name a Town- Owned Park, Open Space, or Facility” application form (Appendix A) to the Town Clerk. 2) The application will be reviewed for completeness based upon the naming criteria set forth in section 3.a.ii of this policy. 3) Completed applications will be forwarded to the Town Administrator and Town Board. 4) If the Town Board wishes to consider the proposed re-naming, the Board will set a date to consider the proposal as an Action Item on a Town Board Meeting Agenda. iii. Costs of Renaming The Town Board may request that any cost of renaming (e.g. the replacement of signs) be borne by the individual or group recommending the change. iv. Noticing of Google Upon any renaming, Town staff will endeavor to ensure that said renaming is reflected on Google Maps as soon as possible. c. Naming of Meeting Rooms in or on Town-Owned Parks, Open Spaces, or Facilities Meeting rooms located in or on Town-owned parks, open spaces, or facilities may be named administratively by the Town Administrator. d. Revocation of Name Under extraordinary circumstances that would cast a negative image upon the Town, any naming of Town-owned parks, open spaces, or facilities in honor of an individual, family, or group may be revoked at the discretion of the Town Board. e. Naming of Streets All streets will be named in accordance with Policy 421 (Addressing and Street Naming Policy). Approved: _____________________________ Wendy Koenig, Mayor _____________ Date Page 22 Policy 208 Naming of Town-Owned Parks, Open Spaces, and Facilities 08/24/2021 Revisions: 0 Town of Estes Park, Town Administrator’s Office Page 5 of 6 APPENDIX 1 - Request to Re-Name a Town-Owned Park, Open Space, or Facility Town of Estes Park Request to Re-Name a Town-Owned Park, Open Space, or Facility 1. Applicant General Information Name: ______________________________________________ Date: ________________ Address: ____________________________________________ City/State: ________________ Zip Code: ___________________________________________ Telephone: ________________ Does the Applicant Represent an Organization? Y N If Yes, Name of Organization: ___________________________________________________________ 2. Nature of Re-Naming Request Park OR Open Space OR Facility Location: ____________________________________________________________________ Proposed Name: _______________________________________________________________ 3. Re-Naming Justification Page 23 Policy 208 Naming of Town-Owned Parks, Open Spaces, and Facilities 08/24/2021 Revisions: 0 Town of Estes Park, Town Administrator’s Office Page 6 of 6 Specific Purpose Historical Feature Geographic Location Deceased Individual Geographic Feature Donation/Sponsorship Adjoining Community Explanation of Justification Attached (Required)?* Y N ________________________________________________ _________________________ Signature Date ________________________________________________ Print Name *Please ensure that the justification addresses the conditions for re-naming contained in Policy 205.3.b.i Page 24 Public Works Memo To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Vanessa Solesbee, Parking & Transit Manager Greg Muhonen, Public Works Director Date: August 24, 2021 RE: Resolution 63-21 Approving an Intergovernmental Agreement with CDOT for FTA 5339(b) Grant Funding for Design of Two Large Vehicle Bays to Store Two Electric Battery Trolley Buses (CDOT PO #491002610) (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER______________ QUASI-JUDICIAL YES NO Objective: Public Works staff seek Town Board approval for this Intergovernmental Agreement (IGA) with the Colorado Department of Transportation (CDOT) for Federal Transit Administration (FTA) 5339(b) grant funding for architectural plans and design of two large vehicle bays to store two electric battery trolley buses. Present Situation: In 2020, the Town received the first of two battery electric trolley buses. The second bus is on schedule to arrive in early 2022. Both trolleys were purchased using FTA grant funds (80% FTA funding, 20% budgeted local match). In order to house and protect the new trolleys, Town staff successfully obtained additional FTA funding in August 2020 to design and construct two large vehicle bays by adding to an existing Town building located at 575 Elm Rd. (former Water Division shop; new Fleet Division shop). CDOT divided the Town’s 5339(b) award into three separate “projects,” each of which require a separate FTA 5339(b) grant funding agreement: 1) Charging Station (IGA executed by the Town Board on July 13, 2021), 2) Facility Design (the item before you this evening); and 3) Facility Construction. Proposal: In April 2021, the Town conducted a competitive Request for Proposal (RFP) process seeking qualified firms to design an addition to the Town’s Fleet Division Shop to house the Town’s battery electric trolley buses. Work to be completed by the selected firm for Page 25 this project will include conceptual designs, engineered construction plans, and construction management. Public Works staff identified a preferred design firm through the competitive RFP process and recommend approval of the IGA with CDOT as presented in order to move the project forward. Advantages: •This project is in line with the defined purpose of FTA 5339(b) grant funding: “to improve the condition of the nation’s public transportation bus fleets, expand transportation access to employment, educational, and healthcare facilities, and to improve mobility options in rural and urban areas throughout the country”. •This project supports the Town Board’s 2021 Strategic Plan, Key Outcome Area: Transportation – “Increase use of charging stations and electric vehicle tourism”. •The acquisition of this electric vehicle will help fulfill the goals of the Statewide Transit Plan. Disadvantages: •Acceptance of grant funding is accompanied with additional administrative burdens; however, Town staff have recent experience managing a Federal grant of this type. •Acceptance of grant funding always comes with risk that the project will not go as planned; however, Town staff have a good working relationship with CDOT and will actively work to identify and mitigate any challenges that may arise. Action Recommended: Public Works staff respectfully request that the Board authorize execution of the proposed grant agreement with CDOT for Federal Transit Administration (FTA) 5339(b) grant funding for design of two large vehicle bays to store two electric battery trolley buses. Finance/Resource Impact: For the facility design “project”, the financial impact to the Town is as follows: FTA 5339(b) funds: $ 28,715 Matching Town funds (budgeted): $ 7,179 Total project cost: $ 35,894 The charging station fits into FTA Category 11 - Bus and Bus Facilities, and as such, cost sharing is required for the grant, as provided in 49 U.S.C. § 5307(d). The local match for this award (noted as “Subrecipient Matching Funds” in Exhibit A of the attached contract) was legally appropriated for the purposes of this Agreement as part of the regular 2021 Town budget process in Fall 2020. The Town’s local match will come from the Fleet Fund (612). Level of Public Interest Public interest in this item is low. The grant award was announced by Congressman Neguse’s office via press release in August 2020. The Transportation Advisory Board receives updates on this project during their regular monthly meetings. Page 26 Sample Motion: I move for the approval/denial of Resolution 63-21. Attachments: 1.Resolution 63-21 2.CDOT IGA (PDF version for TB review only; contract to be issued electronically through Docusign) Page 27 RESOLUTION 63-21 APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH THE COLORADO DEPARTMENT OF TRANSPORTATION FOR FEDERAL TRANSIT ADMINISTRATION 5339(B) GRANT FUNDING FOR DESIGN OF TWO LARGE VEHICLE BAYS TO STORE TWO ELECTRIC BATTERY TROLLEY BUSES WHEREAS, the Town Board desires to enter the intergovernmental agreement referenced in the title of this resolution for the purpose of accepting Federal Transit Administration (FTA) 5339(b) grant funding to develop architectural plans and design for two large vehicle bays to store two electric battery trolley buses; and WHEREAS, the project will support the goals of the Statewide Transit Plan. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: The Board approves, and authorizes the Mayor to sign, the intergovernmental agreement referenced in the title of this resolution in substantially the form now before the Board. DATED this day of , 2021. TOWN OF ESTES PARK Mayor ATTEST: Town Clerk APPROVED AS TO FORM: Town Attorney Attachment 1 Page 28 Contract Number: 21-HTR-ZL-00308/491002610 Page 1 of 45 Version 10/23/19 STATE OF COLORADO SUBAWARD AGREEMENT COVER PAGE State Agency Department of Transportation Agreement Number / PO Number 21-HTR-ZL-00308 / 491002610 Subrecipient TOWN OF ESTES PARK Agreement Performance Beginning Date The Effective Date Initial Agreement Expiration Date December 31, 2024 Subaward Agreement Amount Federal Funds Maximum Amount (80%) Local Funds Local Match Amount (20%) Agreement Total $28,715.00 $7,179.00 $35,894.00 Fund Expenditure End Date December 31, 2024 Agreement Authority Authority to enter into this Agreement exists in CRS §§43-1-106, 43-1-110, 43-1-117.5, 43-1-701, 43-1-702 and 43-2-101(4)(c), appropriated and otherwise made available pursuant to the FAST ACT, MAP-21, SAFETEA_LU, 23 USC §104 and 23 USC §149. Agreement Purpose In accordance with 49 USC §5339(b), the purpose of this Grant is to provide capital funding to improve the condition of the nation’s public transportation bus fleets, expand transportation access to employment, educational, and healthcare facilities, and to improve mobility options in rural and urban areas throughout the country. The work to be completed under this Grant b y the Grantee is more specifically described in Exhibit A. Exhibits and Order of Precedence The following Exhibits and attachments are included with this Agreement: 1.Exhibit A – Statement of Work and Budget. 2.Exhibit B – Sample Option Letter. 3.Exhibit C – Federal Provisions. 4.Exhibit D – Required Federal Contract/Agreement Clauses. 5. Exhibit E – Verification of Payment. In the event of a conflict or inconsistency between this Agreement and any Exhibit or attachment, such conflict or inconsistency shall be resolved by reference to the documents in the following order of priority: 1.Exhibit C – Federal Provisions. 2.Exhibit D – Required Federal Contract/Agreement Clauses. 3.Colorado Special Provisions in §17 of the main body of this Agreement. 4.The provisions of the other sections of the main body of this Agreement. 5.Exhibit A – Statement of Work and Budget. 6. Executed Option Letters (if any). Principal Representatives For the State: Moira Moon Division of Transit and Rail Colorado Dept. of Transportation 2829 W. Howard Place Denver, CO 80204 moira.moon@state.co.us For Subrecipient: Vanessa Solesbee TOWN OF ESTES PARK PO BOX 1200 ESTES PARK, CO 80517 vsolesbee@estes.org DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Attachment 2 Page 29 Contract Number: 21-HTR-ZL-00308/491002610 Page 2 of 45 Version 10/23/19 SIGNATURE PAGE THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT Each person signing this Agreement represents and warrants that the signer is duly authorized to execute this Agreement and to bind the Party authorizing such signature. SUBRECIPIENT TOWN OF ESTES PARK __________________________________________ __________________________________________ By: Print Name of Authorized Individual Date: _________________________ STATE OF COLORADO Jared S. Polis, Governor Department of Transportation Shoshana M. Lew, Executive Director __________________________________________ By: Herman Stockinger, Deputy Director and Director of Policy Date: _________________________ 2nd State or Subrecipient Signature if needed __________________________________________ __________________________________________ By: Print Name of Authorized Individual Date: _________________________ LEGAL REVIEW Philip J. Weiser, Attorney General __________________________________________ By: Assistant Attorney General Date: __________________________ In accordance with §24-30-202, C.R.S., this Agreement is not valid until signed and dated below by the State Controller or an authorized delegate. STATE CONTROLLER Robert Jaros, CPA, MBA, JD ___________________________________________ By: Department of Transportation Effective Date:_____________________ DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 30 Contract Number: 21-HTR-ZL-00308/491002610 Page 3 of 45 Version 10/23/19 TABLE OF CONTENTS 1. PARTIES................................................................................................................................................. 3 2. TERM AND EFFECTIVE DATE .......................................................................................................... 3 3. DEFINITIONS ........................................................................................................................................ 4 4. STATEMENT OF WORK AND BUDGET ........................................................................................... 6 5. PAYMENTS TO SUBRECIPIENT ........................................................................................................ 6 6. REPORTING - NOTIFICATION ........................................................................................................... 8 7. SUBRECIPIENT RECORDS ................................................................................................................. 9 8. CONFIDENTIAL INFORMATION - STATE RECORDS .................................................................... 9 9. CONFLICTS OF INTEREST ............................................................................................................... 10 10. INSURANCE ........................................................................................................................................ 11 11. BREACH OF AGREEMENT ............................................................................................................... 12 12. REMEDIES ........................................................................................................................................... 12 13. DISPUTE RESOLUTION .................................................................................................................... 14 14. NOTICES and REPRESENTATIVES .................................................................................................. 14 15. RIGHTS IN WORK PRODUCT AND OTHER INFORMATION ...................................................... 14 16. GENERAL PROVISIONS .................................................................................................................... 15 17. COLORADO SPECIAL PROVISIONS (COLORADO FISCAL RULE 3-3) ..................................... 17 1. PARTIES This Agreement is entered into by and between Subrecipient named on the Cover Page for this Agreement (the “Subrecipient”), and the STATE OF COLORADO acting by and through the State agency named on the Cover Page for this Agreement (the “State”). Subrecipient and the State agree to the terms and conditions in this Agreement. 2. TERM AND EFFECTIVE DATE A. Effective Date This Agreement shall not be valid or enforceable until the Effective Date, and the Grant Funds shall be expended by the Fund Expenditure End Date shown on the Cover Page for this Agreement. The State shall not be bound by any provision of this Agreement before the Effective Date, and shall have no obligation to pay Subrecipient for any Work performed or expense incurred before the Effective Date, except as described in §5.D, or after the Fund Expenditure End Date. B. Initial Term The Parties’ respective performances under this Agreement shall commence on the Agreement Performance Beginning Date shown on the Cover Page for this Agreement and shall terminate on the Initial Agreement Expiration Date shown on the Cover Page for this Agreement (the “Initial Term”) unless sooner terminated or further extended in accordance with the terms of this Agreement. C. Extension Terms - State’s Option The State, at its discretion, shall have the option to extend the performance under this Agreement beyond the Initial Term for a period, or for successive periods, of one year or less at the same rates and under the same terms specified in this Agreement (each such period an “Extension Term”). In order to exercise this option, the State shall provide written notice to Subrecipient in a form substantially equivalent to the Sample Option Letter attached to this Agreement. D. End of Term Extension If this Agreement approaches the end of its Initial Term, or any Extension Term then in place, the State, at its discretion, upon written notice to Subrecipient in a form substantially equivalent to the Sample Option Letter attached to this Agreement, may unilaterally extend such Initial Term or Extension Term for a period not to exceed two months (an “End of Term Extension”), regardless of whether additional Extension Terms are available or not. The provisions of this Agreement in effect when such notice is given shall remain in effect during the End of Term Extension. The End of Term Extension shall automatically terminate upon execution of a replacement Agreement or modification extending the total term of this Agreement. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 31 Contract Number: 21-HTR-ZL-00308/491002610 Page 4 of 45 Version 10/23/19 E. Early Termination in the Public Interest The State is entering into this Agreement to serve the public interest of the State of Colorado as determined by its Governor, General Assembly, or Courts. If this Agreement ceases to further the public interest of the State, the State, in its discretion, may terminate this Agreement in whole or in part. A determination that this Agreement should be terminated in the public interest shall not be equivalent to a State right to terminate for convenience. This subsection shall not apply to a termination of this Agreement by the State for Breach of Agreement by Subrecipient, which shall be governed by §12.A.i. i. Method and Content The State shall notify Subrecipient of such termination in accordance with §14. The notice shall specify the effective date of the termination and whether it affects all or a portion of this Agreement, and shall include, to the extent practicable, the public interest justification for the termination. ii. Obligations and Rights Upon receipt of a termination notice for termination in the public interest, Subrecipient shall be subject to the rights and obligations set forth in §12.A.i.a. iii. Payments If the State terminates this Agreement in the public interest, the State shall pay Subrecipient an amount equal to the percentage of the total reimbursement payable under this Agreement that corresponds to the percentage of Work satisfactorily completed and accepted, as determined by the State, less payments previously made. Additionally, if this Agreement is less than 60% completed, as determined by the State, the State may reimburse Subrecipient for a portion of actual out-of-pocket expenses, not otherwise reimbursed under this Agreement, incurred by Subrecipient which are directly attributable to the uncompleted portion of Subrecipient’s obligations, provided that the sum of any and all reimbursement shall not exceed the Subaward Maximum Amount payable to Subrecipient hereunder. F. Subrecipient’s Termination Under Federal Requirements Subrecipient may request termination of this Agreement by sending notice to the State, or to the Federal Awarding Agency with a copy to the State, which includes the reasons for the termination and the effective date of the termination. If this Agreement is terminated in this manner, then Subrecipient shall return any advanced payments made for work that will not be performed prior to the effective date of the termination. 3. DEFINITIONS The following terms shall be construed and interpreted as follows: A. “Agreement” means this subaward agreement, including all attached Exhibits, all documents incorporated by reference, all referenced statutes, rules and cited authorities, and any future modifications thereto. B. “Award” means an award by a Recipient to a Subrecipient funded in whole or in part by a Federal Award. The terms and conditions of the Federal Award flow down to the Award unless the terms and conditions of the Federal Award specifically indicate otherwise. C. “Breach of Agreement” means the failure of a Party to perform any of its obligations in accordance with this Agreement, in whole or in part or in a timely or satisfactory manner. The institution of proceedings under any bankruptcy, insolvency, reorganization or similar law, by or against Subrecipient, or the appo intment of a receiver or similar officer for Subrecipient or any of its property, which is not vacated or fully stayed within 30 days after the institution of such proceeding, shall also constitute a breach. If Subrecipient is debarred or suspended under §24-109-105, C.R.S., at any time during the term of this Agreement, then such debarment or suspension shall constitute a breach. D. “Budget” means the budget for the Work described in Exhibit A. E. “Business Day” means any day other than Saturday, Sunday, or a legal holiday as listed in §24-11-101(1), C.R.S. F. “CORA” means the Colorado Open Records Act, §§24 -72-200.1, et. seq., C.R.S. G. “Deliverable” means the outcome to be achieved or output to be provided, in the form of a tangible or intangible Good or Service that is produced as a result of Subrecipient’s Work that is intended to be delivered by Subrecipient. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 32 Contract Number: 21-HTR-ZL-00308/491002610 Page 5 of 45 Version 10/23/19 H. “Effective Date” means the date on which this Agreement is approved and signed by the Colorado State Controller or designee, as shown on the Signature Page for this Agreement. I. “End of Term Extension” means the time period defined in §2.D. J. “Exhibits” means the exhibits and attachments included with this Agreement as shown on the Cover Page for this Agreement. K. “Extension Term” means the time period defined in §2.C. L. “Federal Award” means an award of Federal financial assistance or a cost-reimbursement contract, under the Federal Acquisition Regulations or by a formula or block grant, by a Federal Awarding Agency to the Recipient. “Federal Award” also means an agreement setting forth the terms and conditions of the Federal Award. The term does not include payments to a Subrecipient or payments to an individual that is a beneficiary of a Federal program. M. “Federal Awarding Agency” means a Federal agency providing a Federal Award to a Recipient. Federal Transit Administration (FTA) is the Federal Awarding Agency for the Federal Award which is the subject of this Agreement. N. “FTA” means Federal Transit Administration. O. “Goods” means any movable material acquired, produced, or delivered by Subrecipient as set forth in this Agreement and shall include any movable material acquired, produced, or delivered by Subrecipient in connection with the Services. P. “Grant Funds” means the funds that have been appropriated, designated, encumbered, or otherwise made available for payment by the State under this Agreement. Q. “Incident” means any accidental or deliberate event that results in or constitutes an imminent threat of the unauthorized access, loss, disclosure, modification, disruption, or destruction of any communications or information resources of the State, which are included as part of the Work, as described in §§24 -37.5-401, et. seq., C.R.S. Incidents include, without limitation (i) successful attempts to gain unauthorized access to a State system or State Records regardless of where such information is located; (ii) unwanted disruption or denial of service; (iii) the unauthorized use of a State system for the processing or sto rage of data; or (iv) changes to State system hardware, firmware, or software characteristics without the State’s knowledge, instruction, or consent. R. “Initial Term” means the time period defined in §2.B. S. “Master Agreement” means the FTA Master Agreement document incorporated by reference and made part of FTA’s standard terms and conditions governing the administration of a project supported with federal assistance awarded by FTA. T. “Matching Funds” (Local Funds, or Local Match) means the funds provided by Subrecipient as a match required to receive the Grant Funds and includes in -kind contribution. U. “Party” means the State or Subrecipient, and “Parties” means both the State and Subrecipient. V. “PII” means personally identifiable information including, without limitation, any information maintained by the State about an individual that can be used to distinguish or trace an individual’s identity, such as name, social security number, date and place of birth, mother’s maide n name, or biometric records. PII includes, but is not limited to, all information defined as personally identifiable information in §§24 -72-501 and 24- 73-101, C.R.S. W. “Recipient” means the State agency shown on the Signature and Cover Page s of this Agreement, for the purposes of this Federal Award. X. “Services” means the services to be performed by Subrecipient as set forth in this Agreement and shall include any services to be rendered by Subrecipient in connection with the Goods. Y. “State Confidential Information” means any and all State Records not subject to disclosure under CORA. State Confidential Information shall include but is not limited to PII and State personnel records not subject to disclosure under CORA. State Confidential Information shall not include information or data concerning individuals that is not deemed confidential but nevertheless belongs to the State, which has been communicated, furnished, or disclosed by the State to Subrecipient which (i) is subject to disclosure pursuant to CORA; (ii) is already known to Subrecipient without restrictions at the time of its disclosure to Subrecipient; (iii) is or subsequently becomes publicly available without breach of any obligation owed by Subrecipient to the State; (iv) is disclosed to Subrecipient, without confidentiality obligations, by a third party DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 33 Contract Number: 21-HTR-ZL-00308/491002610 Page 6 of 45 Version 10/23/19 who has the right to disclose such information; or (v) was independently developed without reliance on any State Confidential Information. Z. “State Fiscal Rules” means the fiscal rules promulgated by the Colorado State Controller pursuant to §24 - 30-202(13)(a), C.R.S. AA. “State Fiscal Year” means a 12-month period beginning on July 1 of each calendar year and ending on June 30 of the following calendar year. If a single calendar year follows the term, then it means the State Fiscal Year ending in that calendar year. BB. “State Records” means any and all State data, information, and records regardless of physical form. CC. “Subaward Maximum Amount” means an amount equal to the total of Grant Funds for this Agreement. DD. “Subcontractor” means any third party engaged by Subrecipient to aid in performance of the Work. “Subcontractor” also includes sub -recipients of Grant Funds. EE. “Subrecipient” means a non-Federal entity that receives a sub-award from a Recipient to carry out part of a Federal program but does not include an individual that is a beneficiary of such program. A Subrecipient may also be a recipient of other Federal Awards directly from a Federal Awarding Agency. For the purp oses of this Agreement, Contractor is a Subrecipient. FF. “Uniform Guidance” means the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200, commonly known as the “Super Circular, which supersedes requirements from OMB Circulars A -21, A-87, A-110, A-122, A-89, A- 102, and A-133, and the guidance in Circular A-50 on Single Audit Act follow-up. GG. “Work” means the Goods delivered and Services performed pursuant to this Agreement. HH. “Work Product” means the tangible and intangible results of the Work, whether finished or unfinished, including drafts. Work Product includes, but is not limited to, documents, text, software (including source code), research, reports, proposals, specifications, plans, notes, studies, data, images, photographs, negatives, pictures, drawings, designs, models, surveys, maps, materials, ideas, concepts, know-how, information, and any other results of the Work. “Work Product” does not include any material that was developed prior to the Effective Date that is used, without modification, in the performance of the Work. Any other term used in this Agreement that is defined elsewhere in this Agreement or in an Exhibit shall be construed and interpreted as defined in that section. 4. STATEMENT OF WORK AND BUDGET Subrecipient shall complete the Work as described in this Agreement and in accordance with the provisions of Exhibit A. The State shall have no liability to compen sate Subrecipient for the delivery of any goods or the performance of any services that are not specifically set forth in this Agreement. 5. PAYMENTS TO SUBRECIPIENT A. Subaward Maximum Amount Payments to Subrecipient are limited to the unpaid, obligated balance of the Grant Funds. The State shall not pay Subrecipient any amount under this Agreement that exceeds the Subaward Maximum Amount shown on the Cover Page of this Agreement as “Federal Funds Maximum Amount”. B. Payment Procedures i. Invoices and Payment a. The State shall pay Subrecipient in the amounts and in accordance with the schedule and other conditions set forth in Exhibit A. b. Subrecipient shall initiate payment requests by invoice to the State, in a form and manner approved by the State. c. The State shall pay each invoice within 45 days following the State’s receipt of that invoice, so long as the amount invoiced correctly represents Work completed by Subrecipient and previously accepted by the State during the term that the invoice covers. If the State determines that the amount of any invoice is not correct, then Subrecipient shall make all changes necessary to correct that invoice. d. The acceptance of an invoice shall not constitute acceptance of any Work performed or Deliverables provided under this Agreement. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 34 Contract Number: 21-HTR-ZL-00308/491002610 Page 7 of 45 Version 10/23/19 ii. Interest Amounts not paid by the State within 45 days of the State’s acceptance of the invoice shall bear interest on the unpaid balance beginning on the 45th day at the rate of 1% per month, as required by §24-30- 202(24)(a), C.R.S., until paid in full; provided, however, that interest shall not accrue on unpaid amounts that the State disputes in writing. Subrecipient shall invoice the State separately for accrued interest on delinquent amounts, and the invoice shall reference the delinquent payment, the number of days’ interest to be paid and the interest rate. iii. Payment Disputes If Subrecipient disputes any calculation, determination or amount of any payment, Subrecipient shall notify the State in writing of its dispute within 30 days following the earlier to occur of Subrecipient’s receipt of the payment or notification of the determination or calculation of the payment by the State. The State will review the information presented by Subr ecipient and may make changes to its determination based on this review. The calculation, determination or payment amount that results from the State’s review shall not be subject to additional dispute under this subsection. No payment subject to a dispute under this subsection shall be due until after the State has concluded its review, and the State shall not pay any interest on any amount during the period it is subject to dispute under this subsection. iv. Available Funds-Contingency-Termination The State is prohibited by law from making commitments beyond the term of the current State Fiscal Year. Payment to Subrecipient beyond the current State Fiscal Year is contingent on the appropriation and continuing availability of Grant Funds in any subsequent year (as provided in the Colorado Special Provisions). If federal funds or funds from any other non-State funds constitute all or some of the Grant Funds, the State’s obligation to pay Subrecipient shall be contingent upon such non-State funding continuing to be made available for payment. Payments to be made pursuant to this Agreement shall be made only from Grant Funds, and the State’s liability for such payments shall be limited to the amount remaining of such Grant Funds. If State, federal or other funds are not appropriated, or otherwise become unavailable to fund this Agreement, the State may, upon written notice, terminate this Agreement, in whole or in part, without incurring further liability. The State shall, however, remain obligated to pay for Services and Goods that are delivered and accepted prior to the effective date of notice of termination, and this termination shall otherwise be treated as if this Agreement were terminated in the public interest as described in §2.E. v. Federal Recovery The close-out of a Federal Award does not affect the right of the Federal Awarding Agency or the State to disallow costs and recover funds on the basis of a later audit or other review. Any cost disallowance recovery is to be made within the Record Retention Period, as defined below. C. Matching Funds Subrecipient shall provide Matching Funds as provided in Exhibit A. Subrecipient shall have raised the full amount of Matching Funds prior to the Effective Date and shall report to the State regarding the status of such funds upon request. Subrecipient’s obligation to pay all or any part of any Matching Funds, whether direct or contingent, only extends to funds duly and lawfully appropriated for the purposes of this Agreement by the authorized representatives of Subrecipient and paid into Subrecipient’s treasury or bank account. Subrecipient represents to the State that the amount designated “Subrecipient’s Matching Funds” in Exhibit A has been legally appropriated for the purposes of this Agreement by its authorized representatives and paid into its treasury or bank account. Subrecipient does not by this Agreement irrevocably pledge present cash reserves for payments in future fiscal years, and this Agreement is not intended to create a multiple-fiscal year debt of Subrecipient. Subrecipient shall not pay or be liable for any claimed interest, late charges, fees, taxes or penalties of any nature, except as required by Subrecipient’s laws or policies. D. Reimbursement of Subrecipient Costs i. The State shall reimburse Subrecipient for the federal share of properly documented allowable costs related to the Work after review and approval thereof, subject to the provisions of §5, this Agreement, and Exhibit A. However, any costs incurred by Subrecipient prior to the Effective Date shall not be reimbursed absent specific allowance of pre-award costs and indication that the Federal Award funding is retroactive. The State shall pay Subrecipient for costs or expenses incurred or performance by the Subrecipient prior to the Effective Date, only if (1) the Grant Funds involve federal funding and (2) federal laws, rules, and regulations applicable to the Work provide for such retroactive payments to the DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 35 Contract Number: 21-HTR-ZL-00308/491002610 Page 8 of 45 Version 10/23/19 Subrecipient. Any such retroactive payments shall comply with State Fiscal Rules and be made in accordance with the provisions of this Agreement. ii. The State shall reimburse Subrecipient’s allowable costs, not exceeding the Subaward Maximum Amount shown on the Cover Page of this Agreement and on Exhibit A for all allowable costs described in this Agreement and shown in Exhibit A, except that Subrecipient may adjust the amounts between each line item of Exhibit A without formal modification to this Agreement as long as the Subrecipient provides notice to the State of the change, the change does not modify the Subaward Maximum Amount or the Subaward Maximum Amount for any federal fiscal year or State Fiscal Year, and the change does not modify any requirements of the Work. iii. The State shall only reimburse allowable costs described in this Agreement and shown in the Budget if those costs are: a. Reasonable and necessary to accomplish the Work and for the Goods and Services provided; and b. Equal to the actual net cost to Subrecipient (i.e. the price paid minus any items of value received by Subrecipient that reduce the cost actually incurred). iv. Subrecipient’s costs for Work performed after the Fund Expenditure End Date shown on the Cover Page for this Agreement, or after any phase performance period end date for a respective phase of the Work, shall not be reimbursable. Subrecipient shall initiate any payment request by submitting invoices to the State in the form and manner set forth and approved by the State. E. Close-Out Subrecipient shall close out this Award within 45 days after the Fund Expenditure End Date shown on the Cover Page for this Agreement. To complete close-out, Subrecipient shall submit to the State all Deliverables (including documentation) as defined in this Agreement and Subrecipient’s final reimbursement request or invoice. The State will withhold 5% of allowable costs until all final documentation has been submitted and accepted by the State as substantially complete. If the Federal Awarding Agency has not closed this Federal Award within one year and 90 days after the Fund Expenditure End Date shown on the Cover Page for this Agreement due to Subrecipient’s failure to submit required documentation, then Subrecipient may be prohibited from applying for new Federal Awards through the State until such documentation is submitted and accepted. 6. REPORTING - NOTIFICATION A. Quarterly Reports In addition to any reports required pursuant to any other Exhibit, for any Agree ment having a term longer than three months, Subrecipient shall submit, on a quarterly basis, a written report specifying progress made for each specified performance measure and standard in this Agreement. Such progress report shall be in accordance with the procedures developed and prescribed by the State. Progress reports shall be submitted to the State not later than five Business Days following the end of each calendar quarter or at such time as otherwise specified by the State. B. Litigation Reporting If Subrecipient is served with a pleading or other document in connection with an action before a court or other administrative decision making body, and such pleading or document relates to this Agreement or may affect Subrecipient’s ability to perform its obligations under this Agreement, Subrecipient shall, within 10 days after being served, notify the State of such action and deliver copies of such pleading or document to the State’s Principal Representative identified on the Cover Page for this Agreement. C. Performance and Final Status Subrecipient shall submit all financial, performance and other reports to the State no later than 45 calendar days after the end of the Initial Term if no Extension Terms are exercised, or the final Extension Term exercised by the State, containing an evaluation and review of Subrecipient’s performance and the final status of Subrecipient’s obligations hereunder. D. Violations Reporting Subrecipient shall disclose, in a timely manner, in writing to the State and the Federal Awarding Agency, all violations of federal or State criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal Award. The State or the Federal Awarding Agency may impose any penalties for noncompliance DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 36 Contract Number: 21-HTR-ZL-00308/491002610 Page 9 of 45 Version 10/23/19 allowed under 2 CFR Part 180 and 31 U.S.C. 3321, which may include, without limitation, suspension or debarment. 7. SUBRECIPIENT RECORDS A. Maintenance Subrecipient shall make, keep, maintain, and allow inspection and monitoring by the State of a complete file of all records, documents, communications, notes and other written materials, electronic media files, and communications, pertaining in any manner to the Work and the delivery of Services (including, but not limited to the operation of programs) or Goods hereunde r (collectively, the “Subrecipient Records”). Subrecipient shall maintain such records for a period of three years following the date of submission to the State of the final expenditure report, or if this Award is renewed quarterly or annually, from the da te of the submission of each quarterly or annual report, respectively (the “Record Retention Period”). If any litigation, claim, or audit related to this Award starts before expiration of the Record Retention Period, the Record Retention Period shall extend until all litigation, claims, or audit findings have been resolved and final action taken by the State or Federal Awarding Agency. The Federal Awarding Agency, a cognizant agency for audit, oversight or indirect costs, and the State, may notify Subrecipient in writing that the Record Retention Period shall be extended. For records for real property and equipment, the Record Retention Period shall extend three years following final disposition of such property. B. Inspection Subrecipient shall permit the State, the federal government, and any other duly authorized agent of a governmental agency to audit, inspect, examine, excerpt, copy and transcribe Subrecipient Records during the Record Retention Period. Subrecipient shall make Subrecipient Records available during normal business hours at Subrecipient’s office or place of business, or at other mutually agreed upon times or locations, upon no fewer than two Business Days’ notice from the State, unless the State determines that a shorter period of notice, or no notice, is necessary to protect the interests of the State. C. Monitoring The State, the federal government, and any other duly authorized agent of a governmental agency, in its discretion, may monitor Subrecipient’s performance of its obligations under this Agreement using procedures as determined by the State or that governmental entity. Subrecipient shall allow the State to perform all monitoring required by the Uniform Guidance, based on the State’s risk analysis of Subrecipient and this Agreement. The State shall have the right, in its sole discretion, to change its monitoring procedures and requirements at any time during the term of this Agreement. The State shall monitor Subrecipient’s performance in a manner that does not unduly interfere with Subrecipient’s performance of the Work. D. Final Audit Report Subrecipient shall promptly submit to the State a copy of any final audit report of an audit performed on Subrecipient’s records that relates to or affects this Agreement or the Work, whether the audit is conducted by Subrecipient or a third party. Additionally, if Subrecipient is required to perform a single audit under 2 CFR 200.501, et. seq., then Subrecipient shall submit a copy of the results of that audit to the State within the same timelines as the submission to the federal government. 8. CONFIDENTIAL INFORMATION - STATE RECORDS A. Confidentiality Subrecipient shall keep confidential, and cause all Subcontractors to keep confidential, all State Records, unless those State Records are publicly available. Subrecipient shall not, without prior written approval of the State, use, publish, copy, disclose to any third party, or permit the use by any third party of any State Records, except as otherwise stated in this Agreement, permitted by law or approved in writing by the State. Subrecipient shall provide for the security of all State Confidential Information in accordance with all applicable laws, rules, policies, publications, and guidelines. Subrecipient shall immediately forward any request or demand for State Records to the State’s Principal Representative identified on the Cover Page of the Agreement. B. Other Entity Access and Nondisclosure Agreements Subrecipient may provide State Records to its agents, employees, assigns and Subcontract ors as necessary to perform the Work, but shall restrict access to State Confidential Information to those agents, employees, assigns and Subcontractors who require access to perform their obligations under this Agreement. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 37 Contract Number: 21-HTR-ZL-00308/491002610 Page 10 of 45 Version 10/23/19 Subrecipient shall ensure all such agents, employees, assigns, and Subcontractors sign agreements containing nondisclosure provisions at least as protective as those in this Agreement, and that the nondisclosure provisions are in force at all times the age nt, employee, assign or Subcontractor has access to any State Confidential Information. Subrecipient shall provide copies of those signed nondisclosure provisions to the State upon execution of the nondisclosure provisions if requested by the State. C. Use, Security, and Retention Subrecipient shall use, hold and maintain State Confidential Information in compliance with any and all applicable laws and regulations only in facilities located within the United States, and shall maintain a secure environment that ensures confidentiality of all State Confidential Information. Subrecipient shall provide the State with access, subject to Subrecipient’s reasonable security requirements, for purposes of inspecting and monitoring access and use of State Confidential Information and evaluating security control effectiveness. Upon the expiration or termination of this Agreement, Subrecipient shall return State Records provided to Subrecipient or destroy such State Records and certify to the State that it has done so, as directed by the State. If Subrecipient is prevented by law or regulation from returning or destroying State Confidential Information, Subrecipient warrants it will guarantee the confidentiality of, and cease to use, such State Confidential Information. D. Incident Notice and Remediation If Subrecipient becomes aware of any Incident, Subrecipient shall notify the State immediately and cooperate with the State regarding recovery, remediation, and the necessity to involve law enforcement, as determined by the State. Unless Subrecipient can establish that Subrecipient and its agents, employees, and Subcontractors are not the cause or source of the Incident, Subrecipient shall be responsible for the cost of notifying each person who may have been impacted by the Incident. After an Incident, Subrecipient shall take steps to reduce the risk of incurring a similar type of Incident in the future as directed by the State, which may include, but is not limited to, developing and implementing a remediation plan that is approved by the State at no additional cost to the State. The State may adjust or direct modifications to this plan, in its sole discretion and Subrecipient shall make all modifications as directed by the State. If Subrecipient cannot produce its analysis and plan within the allotted time, the State, in its sole discretion, may perform such analysis and produce a remediation plan, and Subrecipient shall reimburse the State for the reasonable costs thereof. The State may, in its sole discretion and at Subrecipient’s sole expense, require Subrecipient to engage the services of an independent, qualified, State-approved third party to conduct a security audit. Subrecipient shall provide the State with the results of such audit and evidence of Subrecipient’s planned remediation in response to any negative findings. E. Data Protection and Handling Subrecipient shall ensure that all State Records and Work Product in the possession of Subrecipient or any Subcontractors are protected and handled in accordance with the requirements of this Agreement, including the requirements of any Exhibits hereto, at all times. As used in this section, the protections afforded Work Product only apply to Work Product that requires confidential treatment. F. Safeguarding PII If Subrecipient or any of its Subcontractors will or may receive PII under this Agreement, Subrecipient shall provide for the security of such PII, in a manner and form acceptable to the State, including, without limitation, State non-disclosure requirements, use of appropriate technology, security practices, computer access security, data access security, data storage encryption, data transmission encryption, security inspections, and audits. Subrecipient shall be a “Third -Party Service Provider” as defined in §24-73- 103(1)(i), C.R.S., and shall maintain security procedures and practices consistent with §§24 -73-101 et seq., C.R.S. 9. CONFLICTS OF INTEREST A. Actual Conflicts of Interest Subrecipient shall not engage in any business or activities or maintain any relationships that conflict in any way with the full performance of the obligations of Subrecipient under this Agreement. Such a conflict of interest would arise when a Subrecipient or Subcontractor’s employee, officer or agent were to offer or provide any tangible personal benefit to an employee of the State, or any member of his or her immediate family or his or her partner, related to the award of, entry into or management or oversight of thi s Agreement. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 38 Contract Number: 21-HTR-ZL-00308/491002610 Page 11 of 45 Version 10/23/19 B. Apparent Conflicts of Interest Subrecipient acknowledges that, with respect to this Agreement, even the appearance of a conflict of interest shall be harmful to the State’s interests. Absent the State’s prior written approval, Subrecipient shall refrain from any practices, activities or relationships that reasonably appear to be in conflict with the full performance of Subrecipient’s obligations under this Agreement. C. Disclosure to the State If a conflict or the appearance of a conflict arises, or if Subrecipient is uncertain whether a conflict or the appearance of a conflict has arisen, Subrecipient shall submit to the State a disclosure statement setting forth the relevant details for the State’s consideration. Failure to promptly submit a disclosure statement or to follow the State’s direction in regard to the actual or apparent conflict constitutes a breach of this Agreement. D. Subrecipient acknowledges that all State employees are subject to the ethical principles described in §24-18- 105, C.R.S. Subrecipient further acknowledges that State employees may be subject to the requirements of §24-18-105, C.R.S., with regard to this Agreement. For the avoidance of doubt, an actual or apparent conflict of interest shall exist if Subrecipient employs or contracts with any State employee, any former State employee within six months following such employee’s termination of employment with the State, or any immediate family member of such current or former State employee. Subrecipient shall provide a disclosure statement as described in §9.C. no later than ten days following entry into a contractual or employment relationship as described in this section. Failure to timely submit a disclosure statement shall constitute a Breach of Agreement. Subrecipient may also be subject to such penalties as are allowed by law. 10. INSURANCE Subrecipient shall obtain and maintain, and ensure that each Subcontractor shall obtain and maintain, insurance as specified in this section at all times during the term of this Agreement. All insurance policies required by this Agreement that are not provided through self-insurance shall be issued by insurance companies as approved by the State. A. Workers’ Compensation Workers’ compensation insurance as required by state statute, and employers’ liability insurance covering all Subrecipient or Subcontractor employees acting within the course and scope of their employment. B. General Liability Commercial general liability insurance covering premises operations, fire damage, independent contractors, products and completed operations, blanket contractual liability, personal injury, and advertising liability with minimum limits as follows: i. $1,000,000 each occurrence; ii. $1,000,000 general aggregate; iii. $1,000,000 products and completed operations aggregate; and iv. $50,000 any 1 fire. C. Automobile Liability Automobile liability insurance covering any auto (including owned, hired and non -owned autos) with a minimum limit of $1,000,000 each accident combined single limit . D. Additional Insured The State shall be named as additional insured on all commercial general liability policies (leases and construction contracts require additional insured coverage for completed operations) required of Subrecipient and Subcontractors. E. Primacy of Coverage Coverage required of Subrecipient and each Subcontractor shall be primary over any insurance or self- insurance program carried by Subrecipient or the State. F. Cancellation All insurance policies shall include provisions preventing cancellation or non -renewal, except for cancellation based on non-payment of premiums, without at least 30 days prior notice to Subrecipient and DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 39 Contract Number: 21-HTR-ZL-00308/491002610 Page 12 of 45 Version 10/23/19 Subrecipient shall forward such notice to the State in accordance with §14 within seven days of Subrecipient’s receipt of such notice. G. Subrogation Waiver All insurance policies secured or maintained by Subrecipient or its Subcontractors in relation to this Agreement shall include clauses stating that each carrier shall waive all rights of recovery under subrogation or otherwise against Subrecipient or the State, its agencies, institutions, organizations, officers, agents, employees, and volunteers. H. Public Entities If Subrecipient is a "public entity" within the meaning of the Colorado Governmental Immunity Act, §24 - 10-101, et seq., C.R.S. (the “GIA”), Subrecipient shall maintain, in lieu of the liability insurance requirements stated above, at all times during the term of this Agreement such liability insurance, by commercial policy or self-insurance, as is necessary to meet its liabilities under the GIA. If a Subcontractor is a public entity within the meaning of the GIA, Subrecipient shall ensure that the Subcontractor maintain at all times during the terms of this Subrecipient, in lieu of the liability insurance requirements stated above, such liability insurance, by commercial policy or self-insurance, as is necessary to meet the Subcontractor’s obligations under the GIA. I. Certificates For each insurance plan provided by Subrecipient under this Agreement, Subrecipient shall provide to the State certificates evidencing Subrecipient’s insurance coverage required in this Agreement prior to the Effective Date. Subrecipient shall provide to the State certificates evidencing Subcontractor insurance coverage required under this Agreement prior to the Effective Date, except that, if Subrecipient’s subcontract is not in effect as of the Effective Date, Subrecipient shall provide to the S tate certificates showing Subcontractor insurance coverage required under this Agreement within seven Business Days following Subrecipient’s execution of the subcontract. No later than 15 days before the expiration date of Subrecipient’s or any Subcontractor’s coverage, Subrecipient shall deliver to the State certificates of insurance evidencing renewals of coverage. At any other time during the term of this Agreement, upon request by the State, Subrecipient shall, within seven Business Days following the request by the State, supply to the State evidence satisfactory to the State of compliance with the provisions of this section. 11. BREACH OF AGREEMENT In the event of a Breach of Agreement, the aggrieved Party shall give written notice of breach to the other Party. If the notified Party does not cure the Breach of Agreement, at its sole expense, within 30 days after the delivery of written notice, the Party may exercise any of the remedies as described in §12 for that Party. Notwithstanding any provision of this Agreement to the contrary, the State, in its discretion, need not provide notice or a cure period and may immediately terminate this Agreement in whole or in part or institute any other remedy in this Agreement in order to protect the public interest of the State; or if Subrecipient is debarred or suspended under §24-109-105, C.R.S., the State, in its discretion, need not provide notice or cure period and may terminate this Agreement in whole or in part or institute any other remedy in this Agreement as of the date that the debarment or suspension takes effect. 12. REMEDIES A. State’s Remedies If Subrecipient is in breach under any provision of this Agreement and fails to cure such breach, the State, following the notice and cure period set forth in §11, shall have all of the remedies listed in this section in addition to all other remedies set forth in this Agreement or at law. The State may exercise any or all of the remedies available to it, in its discretion, concurrently or consecutively. i. Termination for Breach of Agreement In the event of Subrecipient’s uncured breach, the State may terminate this entire Agreement or any part of this Agreement. Additionally, if Subrecipient fails to comply with any terms of the Federal Award, then the State may, in its discretion or at the direction of a Federal Awarding Agency, terminate this entire Agreement or any part of this Agreement. Subrecipient shall continue performance of this Agreement to the extent not terminated, if any. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 40 Contract Number: 21-HTR-ZL-00308/491002610 Page 13 of 45 Version 10/23/19 a. Obligations and Rights To the extent specified in any termination notice, Subrecipient shall not incur further obligations or render further performance past the effective date of such notice, and shall terminate outstanding orders and subcontracts with third parties. However, Subrecipient shall complete and deliver to the State all Work not cancelled by the termination notice, and may incur obligations as necessary to do so within this Agreement’s terms. At the request of the State, Subrecipient shall assign to the State all of Subrecipient’s rights, title, and interest in and to such terminated orders or subcontracts. Upon termination, Subrecipient shall take timely, reasonable and necessary action to protect and preserve property in the possession of Subrecipient but in which the State has an interest. At the State’s request, Subrecipient shall return materials owned by the State in Subrecipient’s possession at the time of any termination. Subrecipient shall deliver all completed Work Product and all Work Product that was in the process of completion to the State at the State’s request. b. Payments Notwithstanding anything to the contrary, the State shall only pay Subrecipient for accepted Work received as of the date of termination. If, after termination by the State, the State agrees that Subrecipient was not in breach or that Subrecipient’s action or inaction was excusable, such termination shall be treated as a termination in the public interest , and the rights and obligations of the Parties shall be as if this Agreement had been terminated in the public interest under §2.E. c. Damages and Withholding Notwithstanding any other remedial action by the State, Subrecipient shall remain liable to the State for any damages sustained by the State in connection with any breach by Subrecipient, and the State may withhold payment to Subrecipient for the purpose of mitigating the State’s damages until such time as the exact amount of damages due to the State from Subrecipient is determined. The State may withhold any amount that may be due Subrecipient as the State deems necessary to protect the State against loss including, without limitation, loss as a result of outstanding liens and excess costs incurred by the State in procuring from third parties replacement Work as cover. ii. Remedies Not Involving Termination The State, in its discretion, may exercise one or more of the following additional remedies: a. Suspend Performance Suspend Subrecipient’s performance with respect to all or any portion of the Work pending corrective action as specified by the State without entitling Subrecipient to an adjustment in price or cost or an adjustment in the performance schedule. Subrecipient shall promptly cease performing Work and incurring costs in accordance with the State’s directive, and the State shall not be liable for costs incurred by Subrecipient after the suspension of performance. b. Withhold Payment Withhold payment to Subrecipient until Subrecipient corrects its Work. c. Deny Payment Deny payment for Work not performed, or that due to Subrecipient’s actions or inactions, cannot be performed or if they were performed are reasonably of no value to the state ; provided, that any denial of payment shall be equal to the value of the obligations not performed. d. Removal Demand immediate removal of any of Subrecipient’s employees, agents, or Subcontractors from the Work whom the State deems incompetent, careless, insubordinate, unsuitable, or otherwise unacceptable or whose continued relation to this Agreement is deemed by the State to be contrary to the public interest or the State’s best interest. e. Intellectual Property If any Work infringes, or if the State in its sole discretion determines that any Work is likely to infringe, a patent, copyright, trademark, trade secret or other intellectual property right, Subrecipient shall, as approved by the State (i) secure that right to use such Work for the State and Subrecipient; DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 41 Contract Number: 21-HTR-ZL-00308/491002610 Page 14 of 45 Version 10/23/19 (ii) replace the Work with noninfringing Work or modify the Work so that it becomes noninfringing; or, (iii) remove any infringing Work and refund the amount paid for such Work to the State. B. Subrecipient’s Remedies If the State is in breach of any provision of this Agreement and does not cure such breach, Subrecipient, following the notice and cure period in §11 and the dispute resolution process in §13 shall have all remedies available at law and equity. 13. DISPUTE RESOLUTION A. Initial Resolution Except as herein specifically provided otherwise, disputes concerning the performance of this Agreement which cannot be resolved by the designated Agreement representatives shall be referred in writing to a senior departmental management staff member designated by the State and a senior manager designated by Subrecipient for resolution. B. Resolution of Controversies If the initial resolution described in §13.A fails to resolve the dispute within 10 Business Days, Subrecipient shall submit any alleged breach of this Agreement by the State to the Procurement Official of the State Agency named on the Cover Page of this Agreement as described in §24-101-301(30), C.R.S., for resolution following the same resolution of controversies process as described in §§24 -106-109, and 24-109-101.1 through 24-109-505, C.R.S., (collectively, the “Resolution Statutes”), except that if Subrecipient wishes to challenge any decision rendered by the Procurement Official, Subrecipient’s challenge shall be an appeal to the executive director of the Department of Personnel and Administration, or their delegate, in the same manner as described in the Resolution Statutes before Subrecipient pursues any further action. Except as otherwise stated in this Section, all requirements of the Resolution Statutes shall apply including, without limitation, time limitations regardless of whether the Colorado Procurement Code applies to this Agreement . 14. NOTICES and REPRESENTATIVES Each individual identified as a Principal Representative on the Cover Page for this Agreement shall be the principal representative of the designating Party. All notices required or permitted to be given under this Agreement shall be in writing, and shall be delivered (A) by hand with receipt required, (B) by certified or registered mail to such Party’s principal representative at the address set forth on the Cover Page for this Agreement or (C) as an email with read receipt requested to the principal representative at the email address, if any, set forth on the Cover Page for this Agreement. If a Party delivers a notice to another through email and the email is undeliverable, then, unless the Party has been provided with an alternate email contact, the Party delivering the notice shall deliver the notice by hand with receipt required or by certified or registered mail to such Party’s principal representative at the address set forth on the Cover Page for this Agreement. Either Party may change its principal representative or principal representative contact information, or may designate specific other individuals to receive certain types of notices in addition to or in lieu of a principal representative, by notice submitted in accordance with this section without a formal amendment to this Agreement. Unless otherwise provided in this Agreement, notices shall be effective upon delivery of the written notice. 15. RIGHTS IN WORK PRODUCT AND OTHER INFORMATION A. Work Product Subrecipient agrees to provide to the State a royalty-free, non-exclusive and irrevocable license to reproduce publish or otherwise use and to authorize others to use the Work Product described herein, for the Federal Awarding Agency’s and State’s purposes. All Work Product shall be delivered to the State by Subrecipient upon completion or termination hereof. B. Exclusive Property of the State Except to the extent specifically provided elsewhere in this Agreement, all State Records, documents, text, software (including source code), research, reports, proposals, specifications, plans, notes, studies, data, images, photographs, negatives, pictures, drawings, designs, models, surveys, maps, materials, ideas, concepts, know-how, and information provided by or on behalf of the State to Subrecipient are the exclusive property of the State (collectively, “State Materials”). Subrecipient shall not use, willingly allow, cause or permit Work Product or State Materials to be used for any purpose other than the performance of Subrecipient’s obligations in this Agreement without the prior written consent of the State. Upon termination DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 42 Contract Number: 21-HTR-ZL-00308/491002610 Page 15 of 45 Version 10/23/19 of this Agreement for any reason, Subrecipient shall provide all Work Product and State Materials to the State in a form and manner as directed by the State. C. Exclusive Property of Subrecipient Subrecipient retains the exclusive rights, title, and ownership to any and all pre -existing materials owned or licensed to Subrecipient including, but not limited to, all pre-existing software, licensed products, associated source code, machine code, text images, audio and/or video, and third -party materials, delivered by Subrecipient under this Agreement, whether incorporated in a Deliverable or necessary to use a Deliverable (collectively, “Subrecipient Property”). Subrecipient Property shall be licensed to the State as set forth in this Agreement or a State approved license agreement: (i) entered into as exhibits to this Agreement, (ii) obtained by the State from the applicable third-party vendor, or (iii) in the case of open source software, the license terms set forth in the applicable open source license agreement. 16. GENERAL PROVISIONS A. Assignment Subrecipient’s rights and obligations under this Agreement are personal and may not be transferred or assigned without the prior, written consent of the State. Any attempt at assignment or transfer without such consent shall be void. Any assignment or transfer of Subrecipient’s rights and obligations approved by the State shall be subject to the provisions of this Agreement. B. Subcontracts Subrecipient shall not enter into any subaward or subcontract in connection with its obligations under this Agreement without the prior, written approval of the State. Subrecipient shall submit to the State a copy of each such subaward or subcontract upon request by the State. All subawards and subcontracts entered into by Subrecipient in connection with this Agreement shall comply with all applicable federal and state laws and regulations, shall provide that they are governed by the laws of the State of Colorado, and shall be subject to all provisions of this Agreement. If the entity with whom Subrecipient enters into a subcontract or subaward would also be considered a Subrecipient, then the subcontract or subaward entered into by Subrecipient shall also contain provisions permitting both Subrecipient and the State to perform all monitoring of that Subcontractor in accordance with the Uniform Guidance. C. Binding Effect Except as otherwise provided in §16.A, all provisions of this Agreement, including the benefits and burdens, shall extend to and be binding upon the Parties’ respective successors and assigns. D. Authority Each Party represents and warrants to the other that the execution and delivery of this Agreement and the performance of such Party’s obligations have been duly authorized. E. Captions and References The captions and headings in this Agreement are for convenience of reference only, and shall not be used to interpret, define, or limit its provisions. All references in this Agreement to sections (whether spelled out or using the § symbol), subsections, exhibits or other attachments, are references to sections, subsections, exhibits or other attachments contained herein or incorporated as a part hereof, unless otherwise noted. F. Counterparts This Agreement may be executed in multiple, identical, original counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement. G. Entire Understanding This Agreement represents the complete integration of all understandings between the Parties related to the Work, and all prior representations and understandings related to the Work, oral or written, are merged into this Agreement. Prior or contemporaneous additions, deletions, or other changes to this Agreement shall not have any force or effect whatsoever, unless embodied herein. H. Digital Signatures If any signatory signs this Agreement using a digital signature in a ccordance with the Colorado State Controller Contract, Grant and Purchase Order Policies regarding the use of digital signatures issued under the State Fiscal Rules, then any agreement or consent to use digital signatures within the electronic system through which that signatory signed shall be incorporated into this Agreement by reference. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 43 Contract Number: 21-HTR-ZL-00308/491002610 Page 16 of 45 Version 10/23/19 I. Modification Except as otherwise provided in this Agreement, any modification to this Agreement shall only be effective if agreed to in a formal amendment to this Agreement, properly executed and approved in accordance with applicable Colorado State law and State Fiscal Rules. Modifications permitted under this Agreement, other than Agreement amendments, shall conform to the policies issued by the Colorado State Controller. J. Statutes, Regulations, Fiscal Rules, and Other Authority. Any reference in this Agreement to a statute, regulation, State Fiscal Rule, fiscal policy or other authority shall be interpreted to refer to such authority then current, as may have b een changed or amended since the Effective Date of this Agreement. K. External Terms and Conditions Notwithstanding anything to the contrary herein, the State shall not be subject to any provision included in any terms, conditions, or agreements appearing on Subrecipient’s or a Subcontractor’s website or any provision incorporated into any click-through or online agreements related to the Work unless that provision is specifically referenced in this Agreement. L. Severability The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect, provided that the Parties can continue to perform their obligations under this Ag reement in accordance with the intent of this Agreement. M. Survival of Certain Agreement Terms Any provision of this Agreement that imposes an obligation on a Party after termination or expiration of this Agreement shall survive the termination or expiration of this Agreement and shall be enforceable by the other Party. N. Taxes The State is exempt from federal excise taxes under I.R.C. Chapter 32 (26 U.S.C., Subtitle D, Ch. 32) (Federal Excise Tax Exemption Certificate of Registry No. 84-730123K) and from State and local government sales and use taxes under §§39-26-704(1), et seq., C.R.S. (Colorado Sales Tax Exemption Identification Number 98-02565). The State shall not be liable for the payment of any excise, sales, or use taxes, regardless of whether any political subdivision of the State imposes such taxes on Subrecipient. Subrecipient shall be solely responsible for any exemptions from the collection of excise, sales or use taxes that Subrecipient may wish to have in place in connection with this Agree ment. O. Third Party Beneficiaries Except for the Parties’ respective successors and assigns described in §16.A, this Agreement does not and is not intended to confer any rights or remedies upon any person or entity other than the Parties. Enforcement of this Agreement and all rights and obligations hereunder are reserved solely to the Parties. Any services or benefits which third parties receive as a result of this Agreement are incidental to this Agreement, and do not create any rights for such third parties. P. Waiver A Party’s failure or delay in exercising any right, power, or privilege under this Agreement, whether explicit or by lack of enforcement, shall not operate as a waiver, nor shall any single or partial exercise of any right, power, or privilege preclude any other or further exercise of such right, power, or privilege. Q. CORA Disclosure To the extent not prohibited by federal law, this Agreement and the performance measures and standards required under §24-106-107, C.R.S., if any, are subject to public release through the CORA. R. Standard and Manner of Performance Subrecipient shall perform its obligations under this Agreement in accordance with the highest standards of care, skill and diligence in Subrecipient’s industry, trade, or profession. S. Licenses, Permits, and Other Authorizations i. Subrecipient shall secure, prior to the Effective Date, and maintain at all times during the term of this Agreement, at its sole expense, all licenses, certifications, permits, and other authorizations required to perform its obligations under this Agreement, and shall ensure that all employees, agents and Subcontractors secure and maintain at all times during the term of their employment, agency or DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 44 Contract Number: 21-HTR-ZL-00308/491002610 Page 17 of 45 Version 10/23/19 Subcontractor, all license, certificatio ns, permits and other authorizations required to perform their obligations in relation to this Agreement. ii. Subrecipient, if a foreign corporation or other foreign entity transacting business in the State of Colorado, shall obtain prior to the Effective Date and maintain at all times during the term of this Agreement, at its sole expense, a certificate of authority to transact business in the State of Colorado and designate a registered agent in Colorado to accept service of process. T. Federal Provisions Subrecipient shall comply with all applicable requirements of Exhibits C and D at all times during the term of this Agreement. 17. COLORADO SPECIAL PROVISIONS (COLORADO FISCAL RULE 3-3) These Special Provisions apply to all agreements except where noted in italics. A. STATUTORY APPROVAL. §24-30-202(1), C.R.S. This Agreement shall not be valid until it has been approved by the Colorado State Controller or designee. If this Agreement is for a Major Information Technology Project, as defined in §24 -37.5-102(2.6), C.R.S., then this Agreement shall not be valid until it has been approved by the State’s Chief Information Officer or designee. B. FUND AVAILABILITY. §24-30-202(5.5), C.R.S. Financial obligations of the State payable after the current State Fiscal Year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available . C. GOVERNMENTAL IMMUNITY. Liability for claims for injuries to persons or property arising from the negligence of the State, its departments, boards, commissions committees, bureaus, offices, employees and officials shall be controlled and limited by the provisions of the Colorado Governmental Immunity Act, §24 -10-101, et seq., C.R.S.; the Federal Tort Claims Act, 28 U.S.C. Pt. VI, Ch. 171 and 28 U.S.C. 13 46(b), and the State’s risk management statutes, §§24-30-1501, et seq. C.R.S. No term or condition of this Agreement shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, contained in these statutes. D. INDEPENDENT CONTRACTOR. Subrecipient shall perform its duties hereunder as an independent contractor and not as an employee. Neither Subrecipient nor any agent or employee of Subrecipient shall be deemed to be an agent or employee of the State. Subrecipient shall not have authorization, express or implied, to bind the State to any agreement, liability or understanding, except as expressly set forth herein. Subrecipient and its employees and agents are not entitled to unemployment insurance or workers compensation benefits through the State and the State shall not pay for or otherwise provide such coverage for Subrecipient or any of its agents or employees. Subrecipient shall pay when due all applicable employment taxes and income taxes and local head taxes incurred pursuant to this Agreement. Subrecipient shall (i) provide and keep in force workers' compensation and unemployment compensation insurance in the amounts required by law, (ii) provide proof thereof when requested by the State, and (iii) be solely responsible for its acts and those of its employees and agents. E. COMPLIANCE WITH LAW. Subrecipient shall comply with all applicable federal and State laws, rules, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices. F. CHOICE OF LAW, JURISDICTION, AND VENUE. Colorado law, and rules and regulations issued pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this Agreement. Any provision included or incorporated herein by reference which conflicts with said laws, rules, and regulations shall be null and void. All suits or actions related to this Agreement shall be filed and proceedings held in the State of Colorado and exclusive venue shall be in the City and County of Denver. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 45 Contract Number: 21-HTR-ZL-00308/491002610 Page 18 of 45 Version 10/23/19 G. PROHIBITED TERMS. Any term included in this Agreement that requires the State to indemnify or hold Subrecipient harmless; requires the State to agree to binding arbitration; limits Subrecipient’s liability for damages resulting from death, bodily injury, or damage to tangible property; or that conflicts with this provision in any way shall be void ab initio. Nothing in this Agreement shall be construed as a waiver of any provision of §24 -106-109, C.R.S. H. SOFTWARE PIRACY PROHIBITION. State or other public funds payable under this Agreement shall not be used for the acquisition, operation, or maintenance of computer software in violation of federal copyright laws or applicable licensing restrictions. Subrecipient hereby certifies and warrants that, during the term of this Agreement and any extensions, Subrecipient has and shall maintain in place appropriate systems and controls to prevent such improper use of public funds. If the State determines that Subrecipient is in violation of this provision, the State may exercise any remedy available at law or in equity or under this Agreement, including, without limitation, immediate termination of this Agreement and any remedy consistent with federal copyright laws or applicable licensing restrictions. I. EMPLOYEE FINANCIAL INTEREST/CONFLICT OF INTEREST. §§24-18-201 and 24-50-507, C.R.S. The signatories aver that to their knowledge, no employee of the State has any personal or beneficial interest whatsoever in the service or property described in this Agreement. Subrecipient has no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance of Subrecipient’s services and Subrecipient shall not employ any person having such known interests. J. VENDOR OFFSET AND ERRONEOUS PAYMENTS. §§24-30-202(1) and 24-30-202.4, C.R.S. [Not applicable to intergovernmental agreements] Subject to §24-30-202.4(3.5), C.R.S., the State Controller may withhold payment under the State’s vendor offset intercept system for debts owed to State agencies for: (i) unpaid child support debts or child support arrearages; (ii) unpaid balances of tax, accrued interest, or other charges specified in §§39-21-101, et seq., C.R.S.; (iii) unpaid loans due to the Student Loan Division of the Department of Higher Education; (iv) amounts required to be paid to the Unemployment Compensation Fund; and (v) other unpaid debts owing to the State as a result of final agency determination or judicial action. The State may also recover, at the State’s discretion, payments made to Subrecipient in error for any reason, including, but not limited to, overpayments or improper payments, and unexpended or excess funds received by Subrecipient by deduction from subsequent payments under this Agreement, deduction from any payment due under any other contracts, grants or agreements between the State and Subrecipient, or by any other appropriate method for collecting debts owed to the State. K. PUBLIC CONTRACTS FOR SERVICES. §§8-17.5-101, et seq., C.R.S. [Not applicable to agreements relating to the offer, issuance, or sale of securities, investment advisory services or fund management services, sponsored projects, intergovernmental agreements, or information technology services or products and services] Subrecipient certifies, warrants, and agrees that it does not knowingly employ or contract with an illegal alien who will perform work under this Agreement and will confirm the employment eligibility of all employees who are newly hired for employment in the United States to perform work under this Agreement, through participation in the E-Verify Program or the State verification program established pursuant to §8-17.5-102(5)(c), C.R.S., Subrecipient shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or enter into a contract with a Subcontractor that fails to certify to Subrecipient that the Subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement. Subrecipient (i) shall not use E-Verify Program or the program procedures of the Colorado Department of Labor and Employment (“Department Program”) to undertake pre-employment screening of job applicants while this Agreement is being performed, (ii) shall notify the Subcontractor and the contracting State agency or institution of higher education within three days if Subrecipient has actual knowledge that a Subcontractor is employing or contracting with an illegal alien for work under this Agreement, (iii) shall terminate the subcontract if a Subcontractor does not stop employing or contracting with the illegal alien within three days of receiving the notice, and (iv) shall comply with reasonable requests made in the course of an investigation, undertaken pursuant to §8-17.5-102(5), C.R.S., by the Colorado Department of Labor and Employment. If Subrecipient participates in the Department program, Subrecipient shall deliver to the contracting State agency, Institution of Higher Education or political subdivision, a written, notarized affirmation, affirming that Subrecipient has examined the legal work status of such employee, and shall comply with all of the other requirements of the DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 46 Contract Number: 21-HTR-ZL-00308/491002610 Page 19 of 45 Version 10/23/19 Department program. If Subrecipient fails to comply with any requirement of this provision or §§8-17.5-101, et seq., C.R.S., the contracting State agency, institution of higher education or political sub division may terminate this Agreement for breach and, if so terminated, Subrecipient shall be liable for damages. L. PUBLIC CONTRACTS WITH NATURAL PERSONS. §§24-76.5-101, et seq., C.R.S. Subrecipient, if a natural person eighteen (18) years of age or older, hereby swears and affirms under penalty of perjury that Subrecipient (i) is a citizen or otherwise lawfully present in the United States pursuant to federal law, (ii) shall comply with the provisions of §§24 -76.5-101, et seq., C.R.S., and (iii) has produced one form of identification required by §24-76.5-103, C.R.S., prior to the Effective Date of this Agreement. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 47 Contract Number: 21-HTR-ZL-00308/491002610 Page 20 of 45 Version 10/23/19 EXHIBIT A, STATEMENT OF WORK AND BUDGET Project Description* 2020 5339 (b) Estes Park Electric Trolley Facility Design Federal Awarding Agency Federal Transit Administration (FTA) Federal Regional Contact Cindy Terwilliger Federal Award Date To Be Determined Project End Date December 31, 2024 FAIN To Be Determined CFDA # 20.526 CFDA Title Bus and Bus Facilities Grants Program Subrecipient Estes Park, Town of DUNS # 078355450 Contact Name Vendor # 2000306 Address PO Box 1200 Estes Park, Colorado 80517-1200 Phone 970-577-3957 Email vsolesbee@estes.org Indirect Rate N/A WBS** 20-39-0025.ESTE.114 ALI 11.41.04 Total Project Budget $35,894.00 Federal FTA-5339 Funds (at 80% or less) $28,715.00 Local Funds (at 20% or more) $7,179.00 Total Project Amount Encumbered via this Subaward Agreement $35,894.00 *This is not a research and development grant. **The WBS numbers may be replaced without changing the amount of the subaward at CDOT’s discretion. A. Project Description The Town of Estes Park will use 2020 FTA Section 5339(b) funds, along with local matching funds, to develop the architectural plans and design for the construction of two large vehicle bays within which to store two electric battery trolley buses, as more fully described below. The project will support the goals of the Statewide Transit Plan. ALI QTY Fuel Type Description FTA Amount 11.41.04 N/A N/A Facility design $28,715 The Town of Estes Park is a governmental entity located in Larimer County, Colorado, and operates Estes Transit, a free public transportation shuttle service. The service is free and open to all riders and is offered both during the summer months (“peak season service”) and for special events throughout the year. Transit service information is presented on the Town’s website at www.estes.org/shuttles. The Town currently operates gasoline-fueled trolley buses and has no indoor storage. The Town was recently awarded FTA grants for the purchase two (2) electric battery trolley buses and a charging station for one of the buses. One electric trolley was put into service in 2020, and the second is expected to be delivered in 2021. The Public Works Department, sponsor of the Town’s transit service, is moving its fleet shop into a n existing building previously occupied by the Town Water Division. In order to house and protect the new trolleys, two large vehicle bays will need to be constructed by adding to the existing building. Federal Section 5339(b) funds have been awarded for design and construction of the two vehicle bays, as well as fo r the purchase of an additional charging station. Before initiating construction, a site review of the construction site must be completed and design work must be conducted. In accordance with Chapter III of FTA Circular 4702.1 B, a Title VI Equity Analysi s comparing the impacts on minority and low-income persons of sitting facilities at any identified feasible locations will also be completed. At 30% design, a Categorical Exclusion (CatEx) worksheet should be completed to address environmental compliance prior to construction. Separate scopes and agreements will be developed for the purchase of the additional charging station and for the construction of the vehicle bays. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 48 Contract Number: 21-HTR-ZL-00308/491002610 Page 21 of 45 Version 10/23/19 Other project details are listed below: Project Address: 577 Elm Road, Estes Park, Colorado 80517 National Environmental Policy Act (NEPA): The Town of Estes Park must ensure that the environmental consequences of its transportation project have been adequately considered and that required mitigation measures can be completed within the time frame and budget described in the Subaward Agreement. An environmental clearance is required before final design, right-of-way acquisition and construction funds are authorized. The Town will work with CDOT and FTA on CatEX approval in order to meet the environmental requirements. Among those requirements, Environmental Justice c onsiderations should be analyzed and documented, if applicable. For more information, see Chapter 9.15 of the CDOT NEPA Manual, found at: https://www.codot.gov/programs/e nvironmental/nepa-program/nepa-manual. Key Tasks/Deliverables: a. Review of the site plan by a professional engineer. b. Procure the professional services of a design/architectural firm c. Review the site plan d. Design the project at a 30% level for environmental review ( CDOT Staff will participate in the review) e. Conduct environmental clearance process and attain FTA’s approval prior to final design stage f. Complete the final design, notifying CDOT in advance so CDOT staff can review the final design along with the Town of Estes Park g. Prepare construction cost estimates B. Performance Standards Design Milestone Description Original Estimated Completion Date Submit Procurement Concurrence Request (PCR) to CDOT Project Manager for Approval 6/30/2021 Submit Procurement Authorization (PA) and solicitation doc uments to a CDOT Project Manager for Approval 7/15/2021 30% of Design Completion Date 9/30/2021 Submit First Reimbursement Request in COTRAMS 10/31/2021 Submit First Progress Report to Grant Unit Manager 10/31/2021 100% of Design Completion Date 12/31/2021 Submit Final Reimbursement Request in COTRAMS 5/31/2022 IMPORTANT NOTE: All milestones in this Statement of Work (except for the final reimbursement request) must be completed no later than the expiration date of this Grant Agreement: 12/31/2024. Performance will be reviewed throughout the duration of this Grant Agreement. Town of Estes Park shall report to the CDOT Project Manager whenever one or more of the following occurs: a. Budget or schedule changes; b. Scheduled milestone or completion dates are not met; c. Identification of problem areas and how the problems will be resolved; and/or d. Expected impacts and the efforts to recover from delays. Town of Estes Park will be responsible for performing and adhering to the following design requirements: a. Prepare and provide preliminary and final design (“Construction Plans”) including drawings, plans, plats, descriptive or supportive material or special provisions and estimates (collectively DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 49 Contract Number: 21-HTR-ZL-00308/491002610 Page 22 of 45 Version 10/23/19 known as “Plans”), as required to communicate the design intent a nd to achieve all required local and state approvals, including planning approvals as required by the Local Authority Having Jurisdiction (AHJ), adopted County or Town Codes, and applicable State and Federal requirements. b. Upon reaching 30% design, work with CDOT and FTA on CatEX approval in order to meet NEPA environmental requirements prior to finalizing design work. c. Prepare final design construction plans in accordance with the requirements, as applicable, of the latest edition of the International Building Code, latest edition adopted by the Town of Estes Park. d. Prepare special provisions and estimates in accordance with any specifications as approved by CDOT. e. The Plans produced shall be stamped by Colorado Registered Professional Engineers and Architect. Plans shall be reviewed and approved in accordance with all Town or AHJ requirements and shall be permitted through the local authority. f. Provide final assembly of Plans and contract documents for the purpose of bidding the project for construction. g. Comply with the requirements of the Americans with Disabilities Act (ADA), and applicable federal regulations and standards as contained in the document “ADA Accessibility Requirements in CDOT Transportation Projects” as well as CDOT Procedural Directive 6 05.1, “ADA Accessibility Requirements.” h. Afford CDOT ample opportunity to review the Plans and make any changes in the Plans that are directed by CDOT to comply with State requirements. i. Submit to CDOT no less than quarterly, or more frequently as requested by CDOT, a report of progress and expenditures made throughout the implementation of the project. C. Project Budget 1. The Total Project Budget is $35,894.00. CDOT will pay no more than 80% of the eligible, actual project costs, up to the maximum amount of $28,715.00. CDOT will retain any remaining balance of the federal share of FTA-5339 Funds. Town of Estes Park shall be solely responsible for all costs incurred in the project in excess of the amount paid by CDOT from Federal Funds for the federal share of eligible, actual costs. For CDOT accounting purposes, the Federal Funds of $28,715.00 (80%) and matching Local Funds of $7,179.00 (20%), will be encumbered for this Subaward Agreement. 2. No refund or reduction of the amount of Town of Estes Park’s share to be p rovided will be allowed unless there is at the same time a refund or reduction of the federal share of a proportionate amount. 3. Town of Estes Park may use eligible federal funds for the Local Funds share, but those funds cannot be from other Federal Department of Transportation (DOT) programs. Town of Estes Park’s share, together with the Federal Funds share, must be enough to ensure payment of the Total Project Budget. 4. Per the terms of this Subaward Agreement, CDOT shall have no obligation to provide state funds for use on this project. CDOT will administer Federal Funds for this project under the terms of this Subaward Agreement, provided that the federal share of FTA funds to be administered by CDOT are made available and remain available. Town of Estes Park shall initiate and prosecute to completion all actions necessary to enable Town of Estes Park to provide its share of the Total Project Budget at or prior to the time that such funds are needed to meet the Total Project Budget. D. Procurement DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 50 Contract Number: 21-HTR-ZL-00308/491002610 Page 23 of 45 Version 10/23/19 Procurement of the professional services will comply with state procurement procedures, the DTR Quick Procurement Guide, as well as FTA’s requirements and 2 CFR 200.320. In addition to the state requirements outlined below, state and FTA procedures (where applicable) for purchase of the Capital Asset(s) must be followed and will be outlined prior to purchase. 1. The first step in the procurement process will be to obtain an Independent Cost Estimate (ICE). 2. The second step will be to obtain a Procurement Concurrence Request (PCR) approval from the CDOT Project Manager through COTRAMS. 3. Prior to entering into a purchasing agreement with the selected vendor, Town of Estes Park shall request a Purchase Authorization (PA), and submit a vendor quote for the Capital Asset(s)/Service(s) in COTRAMS. 4. Town of Estes Park shall be responsible for reimbursing the selected vendor within forty-five (45) calendar days after acceptance of the professional services provided. E. Reimbursement Eligibility Requests for reimbursement for eligible project costs will be paid to Town of Estes Park upon submission of a complete reimbursement packet in COTRAMS for those eligible costs incurred during the Subaward Agreement effective dates. Accepted reimbursement packets will include the following completed documents:  Independent Cost Estimate (ICE)  Procurement Concurrence Request (PCR)  Purchase Authorization (PA)  Invoice  Proof of Payment to vendor(s)  Environmental Clearance  Final Design Plans, upon completion Town of Estes Park must submit the final invoice within sixty (60) calendar days of acceptance of the professional services provided, and submit a Grant Closeout and Liquidation (GCL) Form in COTRAMS within fifteen (15) calendar days of issuance of the final reimbursement payment. F. Restrictions on Lobbying Town of Estes Park is certifying that it complies with 2 CFR 200.450 by entering into this Subaward Agreement. G. Special Conditions 1. Town of Estes Park will comply with all requirements imposed by CDOT on Town of Estes Park so that the federal award is used in accordance with federal statutes, regulations, and the terms and conditions of the federal award. 2. Town of Estes Park must permit CDOT and their auditors to have access to Town of Estes Park’s records and financial statements as necessary, with reasonable advance notice. 3. Except as provided in this Subaward Agreement, Town of Estes Park shall not be reimbursed for any purchase, issued purchase order, or leased capital equipment prior to the execution of this Subaward Agreement. 4. Town of Estes Park cannot request reimbursement for costs on this project from more than one Federal Awarding Agency or other federal awards (i.e., no duplicate billing). 5. Town of Estes Park must obtain CDOT approval, in writing, if FTA funds are inte nded to be used DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 51 Contract Number: 21-HTR-ZL-00308/491002610 Page 24 of 45 Version 10/23/19 for payment of a lease or for third-party contracts. 6. Town of Estes Park shall ensure that it does not exclude from participation in, deny the benefits of, or subject to discrimination any person in the United States on the ground of race, color, national origin, sex, age or disability in accordance with Title VI of the Civil Rights Act of 1964. 7. Town of Estes Park shall seek to ensure non-discrimination in its programs and activities by developing and maintaining a Title VI Program in accordance with the “Requirements for FTA Subrecipients” in CDOT’s Title VI Program Plan and Federal Transit Administration Circular 4702.1B, “Title VI Requirements and Guidelines for FTA Recipients.” The Town shall also facilitate FTA’s compliance with Executive Order 12898 and DOT Order 5610.2(a) by incorporating the principles of environmental justice in planning, project developmen t and public outreach in accordance with FTA Circular 4703.1 “Environmental Justice Policy Guidance for Federal Transit Administration Recipients.” 8. Town of Estes Park will provide transportation services to persons with disabilities, in accordance with Americans with Disabilities Act of 1990, as amended, 42 U.S.C. § 12101 et seq. 9. Town of Estes Park shall develop and maintain an ADA Program in accordance with 28 CFR Part 35, Nondiscrimination on the Basis of Disability in State and Local Government Services, FTA Circular 4710.1, and any additional requirements established by CDOT for FTA subrecipients. 10. Town of Estes Park shall ensure that it will comply with the Americans with Disabilities Act, Section 504 of the Rehabilitation Act, FTA guidance, and any othe r federal, state, and/or local laws, rules and/or regulations. In any contract utilizing federal funds, land, or other federal aid, Town of Estes Park shall require its subrecipients and/or contractors to provide a statement of written assurance that they will comply with Section 504 and not discriminate on the basis of disability. 11. Town of Estes Park shall agree to produce and maintain documentation that supports compliance with the Americans with Disabilities Act to CDOT upon request. 12. Town of Estes Park shall include nondiscrimination language and the Disadvantaged Business Enterprise (DBE) assurance in all contracts and solicitations in accordance with DBE regulations, 49 CFR Part 26, and CDOT’s DBE program. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 52 Contract Number: 21-HTR-ZL-00308/491002610 Page 25 of 45 Version 10/23/19 EXHIBIT B, SAMPLE OPTION LETTER State Agency Department of Transportation Option Letter Number Insert the Option Number (e.g. "1" for the first option) Subrecipient Insert Subrecipient's Full Legal Name, including "Inc.", "LLC", etc... Original Agreement Number Insert CMS number or Other Contract Number of the Original Contract Subaward Agreement Amount Federal Funds Option Agreement Number Insert CMS number or Other Contract Number of this Option Maximum Amount (%) $0.00 Local Funds Agreement Performance Beginning Date The later of the Effective Date or Month, Day, Year Local Match Amount (%) $0.00 Agreement Total $0.00 Current Agreement Expiration Date Month, Day, Year 1. OPTIONS: A. Option to extend for an Extension Term or End of Term Extension. 2. REQUIRED PROVISIONS: A. For use with Option 1(A): In accordance with Section(s) 2.B/2.C of the Original Agreement referenced above, the State hereby exercises its option for an additional term/end of term extension, beginning Insert start date and ending on the current agreement expiration date shown above, at the rates stated in the Original Agreement, as amended. B. For use with Options 1(A): The Subaward Agreement Amount table on the Agreement’s Cover Page is hereby deleted and replaced with the Current Subaward Agreement Amount table shown above. 3. OPTION EFFECTIVE DATE: A. The effective date of this Option Letter is upon approval of the State Controller or ____, whichever is later. STATE OF COLORADO Jared S. Polis, Governor Department of Transportation Shoshana M. Lew, Executive Director By: ________________________________________ Herman Stockinger, Deputy Director and Director of Policy Date: ________________________________ In accordance with §24-30-202, C.R.S., this Option Letter is not valid until signed and dated below by the State Controller or an authorized delegate. STATE CONTROLLER Robert Jaros, CPA, MBA, JD By:_______________________________________ Department of Transportation Option Letter Effective Date: __________________ DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 53 Contract Number: 21-HTR-ZL-00308/491002610 Page 26 of 45 Version 10/23/19 EXHIBIT C, FEDERAL PROVISIONS 1. APPLICABILITY OF PRO VISIONS 1.1. The Contract to which these Federal Provisions are attached has been funded, in whole or in part, with an Award of Federal funds. In the event of a conflict between the provisions of these Federal Provisions, the Special Provisions, the body of the Contract, or any attachments or exhibits incorporated into and made a part of the Contract, the provisions of these Federal Provisions shall control. 2. DEFINITIONS 2.1. For the purposes of these Federal Provisions, the following terms shall have the meanings ascribed to them below. 2.1.1. “Award” means an award of Federal financial assistance, and the Contract setting forth the terms and conditions of that financial assistance, that a non-Federal Entity receives or administers. 2.1.1.1. Awards may be in the form of: 2.1.1.1.1. Grants; 2.1.1.1.2. Contracts; 2.1.1.1.3. Cooperative agreements, which do not include cooperative research and development agreements (CRDA) pursuant to the Federal Technology Transfer Act of 1986, as amended (15 U.S.C. 3710); 2.1.1.1.4. Loans; 2.1.1.1.5. Loan Guarantees; 2.1.1.1.6. Subsidies; 2.1.1.1.7. Insurance; 2.1.1.1.8. Food commodities; 2.1.1.1.9. Direct appropriations; 2.1.1.1.10. Assessed and voluntary contributions; and 2.1.2.1.11. Other financial assistance transactions that authorize the expenditure of Federal funds by non-Federal Entities. 2.1.1.1.12. Any other items specified by OMB in policy memoranda available at the OMB website or other source posted by the OMB. 2.1.1.2. Award does not include: 2.1.1.2.1. Technical assistance, which provides services in lieu of money; 2.1.1.2.2. A transfer of title to Federally-owned property provided in lieu of money; even if the award is called a grant; 2.1.1.2.3. Any award classified for security purposes; or 2.1.1.2.4. Any award funded in whole or in part with Recovery funds, as defined in section 1512 of the American Recovery and Reinvestment Act (ARRA) of 2009 (Public Law 111 -5). 2.1.2. “Contract” means the Agreement or Subaward Agreement to which these Federal Provisions are attached and includes all Award types in §2.1.1.1 of this Exhibit. 2.1.3. “Contractor” means the party or parties to a Contract or Subaward Agreement funded, in whole or in part, with Federal financial assistance, other than the Prime Recipient, and includes Subrecipients and borrowers. For purposes of Transparency Act reporting, Contractor does not include Vendors . 2.1.4. “Data Universal Numbering System (DUNS) Number” means the nine-digit number established and assigned by Dun and Bradstreet, Inc. to uniquely identify a business entity. Dun and Bradstreet’s website may be found at: http://fedgov.dnb.com/webform. 2.1.5. “Entity” means all of the following as defined at 2 CFR part 25, subpart C; DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 54 Contract Number: 21-HTR-ZL-00308/491002610 Page 27 of 45 Version 10/23/19 2.1.5.1. A governmental organization, which is a State, local government, or Indian Tribe; 2.1.5.2. A foreign public entity; 2.1.5.3. A domestic or foreign non-profit organization; 2.1.5.4. A domestic or foreign for-profit organization; and 2.1.5.5. A Federal agency, but only a Subrecipient under an Award or Sub award to a non-Federal entity. 2.1.6. “Executive” means an officer, managing partner or any other employee in a management position. 2.1.7. “Federal Award Identification Number (FAIN)” means an Award number assigned by a Federal agency to a Prime Recipient. 2.1.8. “Federal Awarding Agency” means a Federal agency providing a Federal Award to a Recipient as described in 2 CFR §200.37 2.1.9. “FFATA” means the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109-282), as amended by §6202 of Public Law 110 -252. FFATA, as amended, also is referred to as the “Transparency Act.” 2.1.10. “Federal Provisions” means these Federal Provisions subject to the Transparency Act and Uniform Guidance, as may be revised pursuant to ongoing guidance from the relevant Federal or State of Colorado agency or institutions of higher education. 2.1.11. “OMB” means the Executive Office of the President, Office of Management and Budget. 2.1.12. “Prime Recipient” means a Colorado State agency or institution of higher education that receives an Award. 2.1.13. “Subaward” means an award by a Recipient to a Subrecipient funded in whole or in part by a Federal Award. The terms and conditions of the Federal Award flow down to the Award unless the te rms and conditions of the Federal Award specifically indicate otherwise in accordance with 2 CFR §200.38. The term does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. 2.1.14. “Subrecipient” means a non-Federal Entity (or a Federal agency under an Award or Subaward to a non-Federal Entity) receiving Federal funds through a Prime Recipient to support the performance of the Federal project or program for which the Federal funds were awarded. A Sub recipient is subject to the terms and conditions of the Federal Award to the Prime Recipient, including program compliance requirements. The term “Subrecipient” includes and may be referred to as Subrecipient. The term does not include an individual who is a beneficiary of a federal program. 2.1.15. “Subrecipient Parent DUNS Number” means the sub recipient parent organization’s 9 -digit Data Universal Numbering System (DUNS) number that appears in the sub recipient’s System for Award Management (SAM) profile, if applicable. 2.1.16. “System for Award Management (SAM)” means the Federal repository into which an Entity must enter the information required under the Transparency Act, which may be found at http://www.sam.gov. 2.1.17. “Total Compensation” means the cash and noncash dollar value earned by an Executive during the Prime Recipient’s or Subrecipient’s preceding fiscal year and includes the following: 2.1.17.1. Salary and bonus; 2.1.17.2. Awards of stock, stock options, and stock appreciation rights, using the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2005) (FAS 123R), Shared Based Payments; 2.1.17.3. Earnings for services under non-equity incentive plans, not including group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of Executives and are available generally to all salaried employees; 2.1.17.4. Change in present value of defined benefit and actuarial pension plans; 2.1.17.5. Above-market earnings on deferred compensation which is not tax-qualified; DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 55 Contract Number: 21-HTR-ZL-00308/491002610 Page 28 of 45 Version 10/23/19 2.1.17.6. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the Executive exceeds $10,000. 2.1.18. “Transparency Act” means the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109-282), as amended by §6202 of Public Law 110-252. The Transparency Act also is referred to as FFATA. 2.1.19. “Uniform Guidance” means the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which supersedes requirements from OMB Circulars A-21, A-87, A-110, and A-122, OMB Circulars A-89, A-102, and A-133, and the guidance in Circular A-50 on Single Audit Act follow-up. The terms and conditions of the Uniform Guidance flow down to Awards to Subrecipie nts unless the Uniform Guidance or the terms and conditions of the Federal Award specifically indicate otherwise. 2.1.20. “Vendor” means a dealer, distributor, merchant or other seller providing property or services required for a project or program funded by an Award. A Vendor is not a Prime Recipient or a Subrecipient and is not subject to the terms and conditions of the Federal award. Program compliance requirements do not pass through to a Vendor. 3. COMPLIANCE 3.1. Contractor shall comply with all applicable provisions of the Transparency Act, all applicable provisions of the Uniform Guidance, and the regulations issued pursuant thereto, including but not limited to these Federal Provisions. Any revisions to such provisions or regulations shall automatically become a part of these Federal Provisions, without the necessity of either party executing any further instrument. The State of Colorado may provide written notification to Contractor of such revisions, but such notice shall not be a condition precedent to the effectiveness of such revisions. 4. SYSTEM FOR AWARD MANAGEMENT (SAM) AND DATA UNIVERSAL NUMBERING SYSTEM (DUNS) REQUIREMENTS 4.1. SAM. Contractor shall maintain the currency of its information in SAM until the Contractor submits the final financial report required under the Award or receives final payment, whichever is later. Contractor shall review and update SAM information at least annually after the initial registration, and more frequently if required by changes in its information. 4.2. DUNS. Contractor shall provide its DUNS number to its Prime Recipient, and shall update Contractor’s information in Dun & Bradstreet, Inc. at least annually after the initial registration, and more frequently if required by changes in Contractor’s information. 5. TOTAL COMPENSATION 5.1. Contractor shall include Total Compensation in SAM for each of its five most highly compensated Executives for the preceding fiscal year if: 5.1.1. The total Federal funding authorized to date under the Award is $25,000 or more; and 5.1.2. In the preceding fiscal year, Contractor received: 5.1.2.1. 80% or more of its annual gross revenues from Federal procurement contracts and subcontracts and/or Federal financial assistance Awards or Sub awards subject to the Transparency Act; and 5.1.2.2. $25,000,000 or more in annual gross revenues from Federal procurement contracts and subcontracts and/or Federal financial assistance Awards or Sub awards subject to the Transparency Act; and 5.1.3. The public does not have access to information about the compensation of such Executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d) or § 6104 of the Internal Revenue Code of 1986. 6. REPORTING 6.1. Contractor shall report data elements to SAM and to the Prime Recipient as required in this Exhibit if Contractor is a Subrecipient for the Award pursuant to the Transparency Act. No direct payment shall be made to Contractor for providing any reports required under these Federal Provisions and the cost of producing such reports shall be included in the Contract price. The reporting requirements in this Exhibit DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 56 Contract Number: 21-HTR-ZL-00308/491002610 Page 29 of 45 Version 10/23/19 are based on guidance from the US Office of Management and Budget (OMB), and as such are subject to change at any time by OMB. Any such changes shall be automatically incorporated into this Contract and shall become part of Contractor’s obligations under this Contract. 7. EFFECTIVE DATE AND DOLLAR THRESHOLD FOR REPORTING 7.1. Reporting requirements in §8 below apply to new Awards as of October 1, 2010, if the initial award is $25,000 or more. If the initial Award is below $25,000 but subsequent Award modifications result in a total Award of $25,000 or more, the Award is subject to the reporting requirements as of the date the Award exceeds $25,000. If the initial Award is $25,000 or more, but funding is subsequently de - obligated such that the total award amount falls below $25,000, the Award shall continue to be subject to the reporting requirements. 7.2. The procurement standards in §9 below are applicable to new Awards made by Prime Recipient as of December 26, 2015. The standards set forth in §11 below are applicable to audits of fiscal years beginning on or after December 26, 2014 . 8. SUBRECIPIENT REPORTING REQUIREMENTS 8.1. If Contractor is a Subrecipient, Contractor shall report as set forth below. 8.1.1. To SAM. A Subrecipient shall register in SAM and report the following data elements in SAM for each Federal Award Identification Number no later than the end of the month following the month in which the Sub award was made: 8.1.1.1. Subrecipient DUNS Number; 8.1.1.2. Subrecipient DUNS Number + 4 if more than one electronic funds transfer (EFT) account; 8.1.1.3. Subrecipient Parent DUNS Number; 8.1.1.4. Subrecipient’s address, including: Street Address, City, State, Country, Zip + 4, and Congressional District; 8.1.1.5. Subrecipient’s top 5 most highly compensated Executives if the criteria in §4 above are met; and 8.1.1.6. Subrecipient’s Total Compensation of top 5 most highly compensated Executives if criteria in §4 above met. 8.1.2. To Prime Recipient. A Subrecipient shall report to its Prime Recipient, upon the effective date of the Agreement, the following data elements: 8.1.2.1. Subrecipient’s DUNS Number as registered in SAM. 8.1.2.2. Primary Place of Performance Information, including: Street Address, City, State, Country, Zip code + 4, and Congressional District. 9. PROCUREMENT STANDARDS 9.1. Procurement Procedures. A Subrecipient shall use its own documented procurement procedures which reflect applicable State, local, and Tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in the Uniform Guidance, inclu ding without limitation, §§200.318 through 200.326 thereof. 9.2. Procurement of Recovered Materials. If a Subrec ipient is a State Agency or an agency of a political subdivision of the State, its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuri ng solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 57 Contract Number: 21-HTR-ZL-00308/491002610 Page 30 of 45 Version 10/23/19 10. ACCESS TO RECORDS 10.1. A Subrecipient shall permit Recipient and auditors to have access to Sub recipient’s records and financial statements as necessary for Recipient to meet the requirements of §200.331 (Requirements for pass - through entities), §§200.300 (Statutory and national policy requirements) through 200.309 (Period of performance), and Subpart F-Audit Requirements of the Uniform Guidance. 2 CFR §200.331(a)(5). 11. SINGLE AUDIT REQUIREMENTS 11.1. If a Subrecipient expends $750,000 or more in Federal Awards during the Subrecipient’s fiscal year, the Subrecipient shall procure or arrange for a single or program-specific audit conducted for that year in accordance with the provisions of Subpart F-Audit Requirements of the Uniform Guidance, issued pursuant to the Single Audit Act Amendments of 1996, (31 U.S.C. 7501-7507). 2 CFR §200.501. 11.1.1. Election. A Subrecipient shall have a single audit conducted in accordance with Uniform Guidance §200.514 (Scope of audit), except when it elects to have a program -specific audit conducted in accordance with §200.507 (Program-specific audits). The Subrecipient may elect to have a program-specific audit if Subrecipient expends Federal Awards under only one Federal program (excluding research and development) and the Federal program's statutes, regulations, or the terms and conditions of the Federal award do not require a financial statement audit of Prime Recipient. A program-specific audit may not be elected for research and development unless all of the Federal Awards expended were received from Recipient and Recipient approves in advance a program- specific audit. 11.1.2. Exemption. If a Subrecipient expends less than $750,000 in Federal Awards during its fiscal year, the Subrecipient shall be exempt from Federal audit requirements fo r that year, except as noted in 2 CFR §200.503 (Relation to other audit requirements), but records shall be available for review or audit by appropriate officials of the Federal agency, the State, and the Government Accountability Office. 11.1.3. Subrecipient Compliance Responsibility. A Subrecipient shall procure or otherwise arrange for the audit required by Part F of the Uniform Guidance and ensure it is properly performed and submitted when due in accordance with the Uniform Guidance. Subrecipient shall prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with Uniform Guidance §200.510 (Financial statements) and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by Uniform Guidance Part F -Audit Requirements. 12. CONTRACT PROVISIONS FOR SUBRECIPIENT CONTRACTS 12.1. If Contractor is a Subrecipient, then it shall comply with and shall include all of the following applicable provisions in all subcontracts entered into by it pursuant to this Agreement. 12.1.1. Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60 - 1.3 shall include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR Part, 1964 - 1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Op portunity, Department of Labor. 12.1.1.1. During the performance of this contract, the contractor agrees as follows: 12.1.1.1.1. Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 58 Contract Number: 21-HTR-ZL-00308/491002610 Page 31 of 45 Version 10/23/19 for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. 12.1.1.1.2. Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 12.1.1.1.3. Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 12.1.1.1.4. Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 12.1.1.1.5. Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. 12.1.1.1.6. In the event of Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. 12.1.1.1.7. Contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States.” 12.1.2. Davis-Bacon Act. Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non - Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141- 3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non -Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti -Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or Subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 59 Contract Number: 21-HTR-ZL-00308/491002610 Page 32 of 45 Version 10/23/19 12.1.3. Rights to Inventions Made Under a Contract or Contract. If the Federal Award meets the definition of “funding Contract” under 37 CFR §401.2 (a) and Subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding Contract,” Subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Contracts,” and any implementing regulations issued by the awarding agency. 12.1.4. Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended. Contracts and subawards of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). 12.1.5. Debarment and Suspension (Executive Orders 12549 and 12689). A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that imple ment Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. 12.1.6. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier-to-tier up to the non-Federal award. 13. CERTIFICATIONS 13.1. Unless prohibited by Federal statutes or regulations, Recipient may require Subrecipient to submit certifications and representations required by Federal statutes or regulations on an annual basis. 2 CFR §200.208. Submission may be required more frequently if Subrecipient fails to meet a requirement of the Federal award. Subrecipient shall certify in writing to the State at the end of the Award that the project or activity was completed, or the level of effort was expended. 2 CFR §200.201(3). If the required level of activity or effort was not carried out, the amount of the Award must be adjusted . 14. EXEMPTIONS 14.1. These Federal Provisions do not apply to an individual who receives an Award as a natural person, unrelated to any business or non-profit organization he or she may own or operate in his or her name. 14.2. A Contractor with gross income from all sources of less than $300,000 in the previous tax year is exempt from the requirements to report Subawards and the Total Compensation of its most highly compensated Executives. 14.3. There are no Transparency Act reporting requirements for Vendors. 15. EVENT OF DEFAULT 15.1. Failure to comply with these Federal Provisions shall constitute an event of default under the Contract and the State of Colorado may terminate the Contract upon 30 days prior written notice if the default remains uncured five calendar days following the termination of the 30-day notice period. This remedy will be in addition to any other remedy available to the State of Colorado under the Contract, at law or in equity. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 60 Contract Number: 21-HTR-ZL-00308/491002610 Page 33 of 45 Version 10/23/19 EXHIBIT D, REQUIRED FEDERAL CONTRACT/AGREEMENT CLAUSES All FTA-Assisted Third-Party Contracts and Subawards from the Current FTA Master Agreement [FTA MA(23)] Section 3.l. – No Federal government obligations to third-parties by use of a disclaimer No Federal/State Government Commitment or Liability to Third Parties. Except as the Federal Government or CDOT expressly consents in writing, the Subrecipient agrees that: (1) The Federal Government or CDOT do not and shall not have any commitment or liability related to the Agreement, to any Third-Party Participant at any tier, or to any other person or entity that is not a party (FTA, CDOT or the Subrecipient) to the Agreement, and (2) Notwithstanding that the Federal Government or CDOT may have concurred in or approved any Solicitation or Third-Party Agreement at any tier that may affect the Agreement, the Federal Government and CDOT does not and shall not have any commitment or liability to any Third Party Participant or other entity or person that is not a party (FTA, CDOT, or the Subrecipient) to the Agreement. Section 4.f. – Program fraud and false or fraudulent statements and related acts False or Fraudulent Statements or Claims. (1) Civil Fraud. The Subrecipient acknowledges and agrees that: (a) Federal laws, regulations, and requirements apply to itself and its Agreement, including the Program Fraud Civil Remedies Act of 1986, as amended, 31 U.S.C. § 3801 et seq., and U.S. DOT regulations, “Program Fraud Civil Remedies,” 49 C.F.R. part 31. (b) By executing the Agreement, the Subrecipient certifies and affirms to the Federal Government the truthfulness and accuracy of any claim, statement, submission, certification, assurance, affirmation, or representation that the Subrecipient provides to the Federal Government and CDOT. (c) The Federal Government and CDOT ma y impose the penalties of the Program Fraud Civil Remedies Act of 1986, as amended, and other applicable penalties if the Subrecipient presents, submits, or makes available any false, fictitious, or fraudulent information. (2) Criminal Fraud. The Subrecipient acknowledges that 49 U.S.C. § 5323(l)(1) authorizes the Federal Government to impose the penalties under 18 U.S.C. § 1001 if the Subrecipient provides a false, fictitious, or fraudulent claim, statement, submission, certification, assurance, or re presentation in connection with a federal public transportation program under 49 U.S.C. chapter 53 or any other applicable federal law. Section 9. Record Retention and Access to Sites of Performance. a. Types of Records. The Subrecipient agrees that it will retain, and will require its Third-Party Participants to retain, complete and readily accessible records related in whole or in part to the Underlying Agreement, including, but not limited to, data, documents, reports, statistics, subagreements, leases, third party contracts, arrangements, other third-party agreements of any type, and supporting materials related to those records. b. Retention Period. The Subrecipient agrees that it will comply with the record retention requirements in the applicable U.S. DOT Common Rule. Records pertaining to its Award, the accompanying Agreement, and any Amendments thereto must be retained from the day the Agreement was signed by the authorized FTA or State official through the course of the Award, the accompanying Agree ment, and any Amendments thereto until three years after the Subrecipient has submitted its last or final expenditure report, and other pending matters are closed. c. Access to Recipient and Third-Party Participant Records. The Subrecipient agrees and assures that each Subrecipient, if any, will agree to: (1) Provide, and require its Third Party Participants at each tier to provide, sufficient access to inspect and audit records and information related to its Award, the accompanying Agreement, and any Amendments thereto to the U.S. Secretary of Transportation or the Secretary’s duly authorized representatives, to the Comptroller General of the United States, and the Comptroller General’s duly authorized representatives, and to the Subrecipient and each of its Subrecipient, (2) Permit those individuals listed above to inspect all work and materials related to its Award, and to audit any information related to its Award under the control of the Subrecipient or Third-Party Participant within books, records, accounts, or other locations, and (3) Otherwise comply with 49 U.S.C. § 5325(g), and federal access to records requirements as set forth in the applicable U.S. DOT Common Rules. d. Access to the Sites of Performance. The Subrecipient agrees to permit, and to require its Third-Party Participants to permit, FTA and CDOT to have access to the sites of performance of its Award, the accompanying Agreement, and any Amendments thereto, and to make site visits as needed in compliance with State and the U.S. DOT Common Rules. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 61 Contract Number: 21-HTR-ZL-00308/491002610 Page 34 of 45 Version 10/23/19 e. Closeout. Closeout of the Award does not alter the record retention or access requirements of this section of th e Master Agreement. 3.G – Federal Changes Application of Federal, State, and Local Laws, Regulations, Requirements, and Guidance . The Subrecipient agrees to comply with all applicable federal requirements and federal guidance. All standards or limits are minimum requirements when those standards or limits are included in the Recipient’s Agreement or this Master Agreement. At the time the FTA Authorized Official (CDOT) awards federal assistance to the Subrecipient in support of the Agreement, the federal requirements and guidance that apply then may be modified from time-to-time and will apply to the Subrecipient or the accompanying Agreement. 12 – Civil Rights a. Nondiscrimination – Title VI of the Civil Rights Act. The Subrecipient agrees to, and assures that each Third- Party Participant, will: (1) Prohibit discrimination on the basis of race, color, or national origin, (2) Comply with: (a) Title VI of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000d et seq., (b) U.S. DOT regulations, “Nondiscrimination in Federally-Assisted Programs of the Department of Transportation – Effectuation of Title VI of the Civil Rights Act of 1964,” 49 C.F.R. part 21, and (c) Federal transit law, specifically 49 U.S.C. § 5332 , and (3) Follow: (a) The most recent edition of FTA Circular 4702.1, “Title VI Requirements and Guidelines for Federal Transit Administration Recipients,” to the extent consistent with applicable federal laws, regulations, requirements, and guidance, (b) U.S. DOJ, “Guidelines for the enforcement of Title VI, Civil Rights Act of 1964,” 28 C.F.R. § 50.3, and (c) All other applicable federal guidance that may be issued. b. Equal Employment Opportunity. (1) Federal Requirements and Guidance. The Subrecipient agrees to, and assures that each Third-Party Participant will, prohibit, discrimination on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin, and: (a) Comply with Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., (b) Facilitate compliance with Executive Order No. 11246, “Equal Employment Opportunity” September 24, 1965, 42 U.S.C. § 2000e note, as amended by any later Executive Order that amends or supersedes it in part and is applicable to federal assistance programs, (c) Comply with federal transit law, specifically 49 U.S.C. § 5332, as provided in section 12 of this Master Agreement, (d) FTA Circular 4704.1 “Equal Employment Opportunity (EEO) Requirements and Guidelines for Federal Transit Administration Recipients,” and (e) Follow other federal guidance pertaining to EEO laws, regulations, and requirements, and prohibitions against discrimination on the basis of disability, (2). Specifics. The Subrecipient agrees to, and assures that each Third-Party Participant will: (a) Prohibited Discrimination. Ensure that applicants for employment are employed and employees are treated during employment without discrimination on the basis of their race, color, religion, national origin, disability, age, sexual orientation, gender identity, or status as a parent, as provided in Executive Order No. 11246 and by any later Executive Order that amends or supersedes it, and as specified by U.S. Department of Labor regulations, (b) Affirmative Action. Take affirmative action that includes, but is not limited to: 1 Recruitment advertising, recruitment, and employment, 2 Rates of pay and other forms of compensation, 3 Selection for training, including apprenticeship, and upgrading, and 4 Transfers, demotions, layoffs, and terminations, but (c) Indian Tribe. Recognize that Title VII of the Civil Rights Act of 1964, as amended, exempts Indian Tribes under the definition of “Employer,” and (3) Equal Employment Opportunity Requirements for Construction Activities . Comply, when undertaking “construction” as recognized by the U.S. Department of Labor (U.S. DOL), with: (a) U.S. DOL regulations, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor,” 41 C.F.R. chapter 60, and DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 62 Contract Number: 21-HTR-ZL-00308/491002610 Page 35 of 45 Version 10/23/19 (b) Executive Order No. 11246, “Equal Employment Opportunity in Federal Employment,” September 24, 1965, 42 U.S.C. § 2000e note, as amended by any later Executive Order that amends or supersedes it, referenced in 42 U.S.C. § 2000e note. c. Nondiscrimination on the Basis of Disability. The Subrecipient agrees to comply with the following federal prohibitions against discrimination on the basis of disability: (1) Federal laws, including: (a) Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 794, which prohibits discrimination on the basis of disability in the administration of federally assisted Programs, Projects, or activities, (b) The Americans with Disabilities Act of 1990 (ADA), as amended, 42 U.S.C. § 12101 et seq., which requires that accessible facilities and services be made available to individuals with disabilities: 1 For FTA Recipients generally, Titles I, II, and III of the ADA apply, but 2 For Indian Tribes, Titles II and III of the ADA apply, but Title I of the ADA does not apply because it exempts Indian Tribes from the definition of “employer,” (c) The Architectural Barriers Act of 1968, as amended, 42 U.S.C. § 4151 et seq., which requires that buildings and public accommodations be accessible to individuals with disabilities, (d) Federal transit law, specifically 49 U.S.C. § 5332, which now includes disability as a prohibited basis for discrimination, and (e) Other applicable federal laws, regulations, and requirements pertaining to access for seniors or individuals with disabilities. (2) Federal regulations and guidance, including: (a) U.S. DOT regulations, “Transportation Services for Individuals with Disabilities (ADA),” 49 C.F.R. part 37, (b) U.S. DOT regulations, “Nondiscrimination on the Basis of Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance,” 49 C.F.R. part 27, (c) Joint U.S. Architectural and Transportation Barriers Compliance Board (U.S. ATBCB) and U.S. DOT regulations, “Americans With Disabilities (ADA) Accessibility Specifications for Transportation Vehicles,” 36 C.F.R. part 1192 and 49 C.F.R. part 38, (d) U.S. DOT regulations, “Transportation for Individuals with Disabilities: Passenger Vessels,” 49 C.F.R. part 39, (e) U.S. DOJ regulations, “Nondiscrimination on the Basis of Disability in State and Local Government Services,” 28 C.F.R. part 35, (f) U.S. DOJ regulations, “Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities,” 28 C.F.R. part 36, (g) U.S. EEOC, “Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act,” 29 C.F.R. part 1630, (h) U.S. Federal Communications Commission regulations, “Telecommunications Relay Services and Related Customer Premises Equipment for Persons with Disabilities,” 47 C.F.R. part 64, Subpart F, (i) U.S. ATBCB regulations, “Electronic and Information Technology Accessibility Standard s,” 36 C.F.R. part 1194, (j) FTA regulations, “Transportation for Elderly and Handicapped Persons,” 49 C.F.R. part 609, (k) FTA Circular 4710.1, “Americans with Disabilities Act: Guidance,” and (l) Other applicable federal civil rights and nondiscrimination regulations and guidance. Incorporation of FTA Terms – 16.a. a. Federal Laws, Regulations, Requirements, and Guidance. The Subrecipient agrees: (1) To comply with the requirements of 49 U.S.C. chapter 53 and other applicable federal laws, regulations, and requirements in effect now or later that affect its third party procurements, (2) To comply with the applicable U.S. DOT Common Rules, and (3) To follow the most recent edition and any revisions of FTA Circular 4220.1, “Third Party Contra cting Guidance,” to the extent consistent with applicable federal laws, regulations, requirements, and guidance. Energy Conservation – 26.j a. Energy Conservation. The Subrecipient agrees to, and assures that its Subrecipients, if any, will comply with the mandatory energy standards and policies of its state energy conservation plans under the Energy Policy and Conservation Act, as amended, 42 U.S.C. § 6321 et seq., and perform an energy assessment for any building constructed, reconstructed, or modified with federal assistance required under FTA regulations, “Requirements for Energy Assessments,” 49 C.F.R. part 622, subpart C. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 63 Contract Number: 21-HTR-ZL-00308/491002610 Page 36 of 45 Version 10/23/19 Applicable to Awards exceeding $10,000 Section 11. Right of the Federal Government to Terminate. a. Justification. After providing written notice to the Subrecipient, the Subrecipient agrees that the Federal Government may suspend, suspend then terminate, or terminate all or any part of the federal assistance for the Award if: (1) The Subrecipient has failed to make reasonable progress implementing the Award, (2) The Federal Government determines that continuing to provide federal assistance to support the Award does not adequately serve the purposes of the law authorizing the Award, or (3) The Subrecipient has violated the terms of the Agreement, especially if that violation would endanger substantial performance of the Agreement. b. Financial Implications. In general, termination of federal assistance for the Award will not invalidate obligations properly incurred before the termination date to the extent that the obligations cannot be canceled. The Federal Government may recover the federal assistance it has provided for the Award, including the federal assistance for obligations properly incurred before the termination date, if it determines that the Subrecipient has misused its federal assistance by failing to make adequate progress, failing to make appropriate use of the Project property, or failing to comply with the Agreement, and require the Subrecipient to refund the entire amount or a lesser amount, as the Federal Government may determine including obligations properly incurred before the termination date. c. Expiration of the Period of Performance. Except for a Full Funding Grant Agreement, expiration of any period of performance established for the Award does not, by itself, constitute an expiration or termination of the Award; FTA may extend the period of performance to assure that each Formula Project or related activities and each Project or related activities funded with “no year” funds can receive FTA assistance to the extent FTA deems appropriate. Applicable to Awards exceeding $25,000 From Section 4. Ethics. a. Debarment and Suspension. The Subrecipient agrees to the following: (1) It will comply with the following requirements of 2 C.F.R. part 180, subpart C, as adopted and supplemented by U.S. DOT regulations at 2 C.F.R. part 1200. (2) It will not enter into any arrangement to participate in the development or implementation of the Underlying Agreement with any Third-Party Participant that is debarred or suspended except as authorized by: (a) U.S. DOT regulations, “Nonprocurement Suspension and Debarment,” 2 C.F.R. part 1200, (b) U.S. OMB regulatory guidance, “Guidelines to Agencies on Government-wide Debarment and Suspension (Nonprocurement),” 2 C.F.R. part 180, including any amendments thereto, (c) Executive Orders No. 12549, “Uniform Suspension, Debarment, or Exclusion of Participants from Procurement or Nonprocurement Activity,” October 13, 1994,” 31 U.S.C. § 6101 note, as amended by Executive Order No. 12689, “Debarment and Suspension,” August 16, 1989 , 31 U.S.C. § 6101 note, and (d) Other applicable federal laws, regulations, or guidance regarding participation with debarred or suspended Subrecipients or Third-Party Participants. (3) It will review the U.S. GSA “System for Award Management – Lists of Parties Excluded from Federal Procurement and Nonprocurement Programs,” https://www.sam.gov, if required by U.S. DOT regulations, 2 C.F.R. part 1200. (4) It will include, and require each Third-Party Participant to include, a similar provision in each lower tier covered transaction, ensuring that each lower tier Third Party Participant: (a) Complies with federal debarment and suspension requirements, and (b) Reviews the SAM at https://www.sam.gov, if necessary to comply with U.S. DOT regulations, 2 C.F.R. part 1200. (5) If the Subrecipient suspends, debars, or takes any similar action against a Third-Party Participant or individual, the Subrecipient will provide immediate written notice to the: (a) FTA Regional Counsel for the Region in which the Subrecipient is located or implements the Agreement, (b) FTA Headquarters Manager that administers the Grant or Cooperative Agreement, or (c) FTA Chief Counsel. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 64 Contract Number: 21-HTR-ZL-00308/491002610 Page 37 of 45 Version 10/23/19 Applicable to Awards exceeding the simplified acquisition threshold ($100,000-see Note) Note: Applicable when tangible property or construction will be acquired Section 15. Preference for United States Products and Services. Except as the Federal Government determines otherwise in writing, the Subrecipient agrees to comply with FTA’s U.S. domestic preference requirements and follow federal guidance, including: Buy America. The domestic preference procurement requirements of 49 U.S.C. § 5323(j), and FTA regulations, “Buy America Requirements,” 49 C.F.R. part 661, to the extent consistent with 49 U.S.C. § 5323(j). Section 39. Disputes, Breaches, Defaults, or Other Litigation. a. FTA Interest. FTA has a vested interest in the settlement of any violation of federal law, regulation, or disagreement involving the Award, the accompanying Agreement, and any Amendments thereto including, but not limited to, a default, breach, major dispute, or litigation, and FTA reserves the right to co ncur in any settlement or compromise. b. Notification to FTA. If a current or prospective legal matter that may affect the Federal Government emerges, the Subrecipient must promptly notify the FTA Chief Counsel, or FTA Regional Counsel for the Region in which the Subrecipient is located. (1) The types of legal matters that require notification include, but are not limited to, a major dispute, breach, default, litigation, or naming the Federal Government as a party to litigation or a legal disagreement in any forum for any reason. (2) Matters that may affect the Federal Government include, but are not limited to, the Federal Government’s interests in the Award, the accompanying Underlying Agreement, and any Amendments thereto, or the Federal Government’s administration or enforcement of federal laws, regulations, and requirements. (3) If the Subrecipient has credible evidence that a Principal, Official, Employee, Agent, or Third Party Participant of the Subrecipient, or other person has submitted a false claim under the False Claims Act, 31 U.S.C. § 3729 et seq., or has committed a criminal or civil violation of law pertaining to such matters as fraud, conflict of interest, bribery, gratuity, or similar misconduct involving federal assistance, the Subrecipient must promptly notify the U.S. DOT Inspector General, in addition to the FTA Chief Counsel or Regional Counsel for the Region in which the Subrecipient is located. c. Federal Interest in Recovery. The Federal Government retains the right to a proportionate share of any proceeds recovered from any third party, based on the percentage of the federal share for the Agreement. Notwithstanding the preceding sentence, the Subrecipient may return all liquidated damages it receives to its Award Budget for its Agreement rather than return the federal share of those liquidated damages to the Federal Government, provided that the Subrecipient receives FTA’s prior written concurrence. d. Enforcement. The Subrecipient must pursue its legal rights and remedies available under any third-party agreement, or any federal, state, or local law or regulation. Applicable to Awards exceeding $100,000 by Statute From Section 4. Ethics. a. Lobbying Restrictions. The Subrecipient agrees that neither it nor any Third-Party Participant will use federal assistance to influence any officer or employee of a federal agency, member of Congress or an employee of a member of Congress, or officer or employee of Congress on matters that involve the Agreement, including any extension or modification, according to the following: (1) Laws, Regulations, Requirements, and Guidance. This includes: (a) The Byrd Anti-Lobbying Amendment, 31 U.S.C. § 1352, as amended, (b) U.S. DOT regulations, “New Restrictions on Lobbying,” 49 C.F.R. part 20, to the extent consistent with 31 U.S.C. § 1352, as amended, and (c) Other applicable federal laws, regulations, requirements, and guidance prohibiting the use of federal assistance for any activity concerning legislation or appropriations designed to influence the U.S. Congress or a state legislature, and (2) Exception. If permitted by applicable federal law, regulations, requirements, or guidance, such lobbying activities described above may be undertaken through the Subrecipient’s or Subrecipient’s proper official channels. Section 26. Environmental Protections – Clean Air and Clean Water Other Environmental Federal Laws. The Subrecipient agrees to comply or facilitate compliance and assures that its Third Party Participants will comply or facilitate compliance with all applicable federal laws, regulations, and requirements, and will follow applicable guidance, including, but not limited to, the Clean Air Act, Clean Water Act, Wild and Scenic Rivers Act of 1968, Coastal Zone Management Act of 1972, the Endangered Species Act of 1973, Magnuson Stevens Fishery Conservation and Management Act, DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 65 Contract Number: 21-HTR-ZL-00308/491002610 Page 38 of 45 Version 10/23/19 Resource Conservation and Recovery Act, Comprehensive Environmental Response, Compensation, and Liability Act, Executive Order No. 11990 relating to “Protection of Wetlands,” and E xecutive Order Nos. 11988 and 13690 relating to “Floodplain Management.”) Applicable with the Transfer of Property or Persons Section 15. Preference for United States Products and Services. Except as the Federal Government determines otherwise in writing, the Subrecipient agrees to comply with FTA’s U.S. domestic preference requirements and follow federal guidance, including: a. Buy America. The domestic preference procurement requirements of 49 U.S.C. § 5323(j), and FTA regulations, “Buy America Requirements,” 49 C.F.R. part 661, to the extent consistent with 49 U.S.C. § 5323(j), b. Cargo Preference. Preference – Use of United States-Flag Vessels. The shipping requirements of 46 U.S.C. § 55305, and U.S. Maritime Administration regulations, “Cargo Preference – U.S.-Flag Vessels,” 46 C.F.R. part 381, and c. Fly America. The air transportation requirements of Section 5 of the International Air Transportation Fair Competitive Practices Act of 1974, as amended, 49 U.S.C. § 40118, and U.S. General Services Administration (U.S. GSA) regulations, “Use of United States Flag Air Carriers,” 41 C.F.R. §§ 301 -10.131 – 301-10.143. Applicable to Construction Activities Section 24. Employee Protections. a. Awards Involving Construction. The Subrecipient agrees to comply and assures that each Third-Party Participant will comply with all federal laws, regulations, and requirements providing protections for construction employees involved in each Project or related activities with federal assistance provided through the Agreement, including the: (1) Prevailing Wage Requirements of: (a) Federal transit laws, specifically 49 U.S.C. § 5333(a), (FTA’s “Davis -Bacon Related Act”), (b) The Davis-Bacon Act, 40 U.S.C. §§ 3141 – 3144, 3146, and 3147, and (c) U.S. DOL regulations, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction (also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act),” 29 C.F.R . part 5. (2) Wage and Hour Requirements of: (a) Section 102 of the Contract Work Hours and Safety Standards Act, as amended, 40 U.S.C. § 3702, and other relevant parts of that Act, 40 U.S.C. § 3701 et seq., an (b) U.S. DOL regulations, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction (also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act),” 29 C.F.R. part 5. (3) “Anti-Kickback” Prohibitions of: (a) Section 1 of the Copeland “Anti-Kickback” Act, as amended, 18 U.S.C. § 874, (b) Section 2 of the Copeland “Anti-Kickback” Act, as amended, 40 U.S.C. § 3145, and (c) U.S. DOL regulations, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States,” 29 C.F.R. part 3. (4) Construction Site Safety of: (a) Section 107 of the Contract Work Hours and Safety Standards Act, as amended, 40 U.S.C. § 3704, an d other relevant parts of that Act, 40 U.S.C. § 3701 et seq., and (b) U.S. DOL regulations, “Recording and Reporting Occupational Injuries and Illnesses,” 29 C.F.R. part 1904; “Occupational Safety and Health Standards,” 29 C.F.R. part 1910; and “Safety and Health Regulations for Construction,” 29 C.F.R. part 1926. From Section 16 b. Bonding. The Subrecipient agrees to comply with the following bonding requirements and restrictions as provided in federal regulations and guidance: 1 Construction. As provided in federal regulations and modified by FTA guidance, for each Project or related activities implementing the Agreement that involve construction, it will provide bid guarantee bonds, contract performance bonds, and payment bonds. 2 Activities Not Involving Construction. For each Project or related activities implementing the Agreement not involving construction, the Subrecipient will not impose excessive bonding and will follow FTA guidance. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 66 Contract Number: 21-HTR-ZL-00308/491002610 Page 39 of 45 Version 10/23/19 From Section 23 c. Seismic Safety. The Subrecipient agrees to comply with the Earthquake Hazards Reduction Act of 1977, as amended, 42 U.S.C. § 7701 et seq., and U.S. DOT regulations, “Seismic Safety,” 49 C.F.R. part 41, specifically, 49 C.F.R. § 41.117. Section 12 Civil Rights D.3 d. Equal Employment Opportunity Req uirements for Construction Activities. Comply, when undertaking “construction” as recognized by the U.S. Department of Labor (U.S. DOL), with: a. U.S. DOL regulations, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor,” 41 C.F.R. chapter 60, and b. Executive Order No. 11246, “Equal Employment Opportunity in Federal Employment,” September 24, 1965, 42 U.S.C. § 2000e note, as amended by any later Executive Order that amends or supersedes it, referenced in 42 U.S.C. § 2000e note. Applicable to Nonconstruction Activities From Section 24. Employee Protections a. Awards Not Involving Construction. The Subrecipient agrees to comply and assures that each Third Party Participant will comply with all federal laws, regulations, and requirements providing wage and hour protections for nonconstruction employees, including Section 102 of the Contract Work Hours and Safety Standards Act, as amended, 40 U.S.C. § 3702, and other relevant parts of that Act, 40 U.S.C. § 3701 et s eq., and U.S. DOL regulations, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction (also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act),” 29 C.F.R. part 5. Applicable to Transit Operations a. Public Transportation Employee Protective Arrangements . As a condition of award of federal assistance appropriated or made available for FTA programs involving public transportation ope rations, the Subrecipient agrees to comply and assures that each Third-Party Participant will comply with the following employee protective arrangements of 49 U.S.C. § 5333(b): (1) U.S. DOL Certification. When its Awarded, the accompanying Agreement, or any Amendments thereto involve public transportation operations and are supported with federal assistance appropriated or made available for 49 U.S.C. §§ 5307 – 5312, 5316, 5318, 5323(a)(1), 5323(b), 5323(d), 5328, 5337, 5338(b), or 5339, or former 49 U.S.C. §§ 5308, 5309, 5312, or other provisions of law as required by the Federal Government, U.S. DOL must provide a certification of employee protective arrangements before FTA may provide federal assistance for that Award. The Subrecipient agrees that the certification issued by U.S. DOL is a condition of the Agreement and that the Subrecipient must comply with its terms and conditions. (2) Special Warranty. When its Agreement involves public transportation operations and is supported with federal assistance appropriated or made available for 49 U.S.C. § 5311, U.S. DOL will provide a Special Warranty for its Award, including its Award of federal assistance under the Tribal Transit Program. The Subrecipient agrees that its U.S. DOL Special Warranty is a condition of the Agreement and the Subrecipient must comply with its terms and conditions. (3) Special Arrangements for Agreements for Federal Assistance Authorized under 49 U.S.C. § 5310. The Subrecipient agrees, and assures that any Third Party Participant providing public transportation operations will agree, that although pursuant to 49 U.S.C. § 5310, and former 49 U.S.C. §§ 5310 or 5317, FTA has determined that it was not “necessary or appropriate” to apply the conditions of 49 U.S.C. § 5333(b) to any Subagreement participating in the program to provide public transportation for seniors (elderly individuals) and individuals with disabilities, FTA reserves the right to make case-by- case determinations of the applicability of 49 U.S.C. § 5333(b) for all trans fers of funding authorized under title 23, United States Code (flex funds), and make other exceptions as it deems appropriate. Section 28. Charter Service. a. Prohibitions. The Recipient agrees that neither it nor any Third -Party Participant involved in the Award will engage in charter service, except as permitted under federal transit laws, specifically 49 U.S.C. § 5323(d), (g), and (r), FTA regulations, “Charter Service,” 49 C.F.R. part 604, any other Federal Charter Service regulations, federal requirements, or federal guidance. b. Exceptions. Apart from exceptions to the Charter Service restrictions in FTA’s Charter Service regulations, FTA has established the following additional exceptions to those restrictions: DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 67 Contract Number: 21-HTR-ZL-00308/491002610 Page 40 of 45 Version 10/23/19 (1) FTA’s Charter Service restrictions do not apply to equipment or facilities supported with federal assistance appropriated or made available for 49 U.S.C. § 5307 to support a Job Access and Reverse Commute (JARC)- type Project or related activities that would have been eligible for assistance under repealed 49 U.S.C. § 5316 in effect in Fiscal Year 2012 or a previous fiscal year, provided that the Subrecipient uses that federal assistance for FTA program purposes only, and (2) FTA’s Charter Service restrictions do not apply to equipment or fa cilities supported with the federal assistance appropriated or made available for 49 U.S.C. § 5310 to support a New Freedom -type Project or related activities that would have been eligible for federal assistance under repealed 49 U.S.C. § 5317 in effect in Fiscal Year 2012 or a previous fiscal year, provided the Subrecipient uses that federal assistance for program purposes only. c. Violations. If it or any Third Party Participant engages in a pattern of violations of FTA’s Charter Service regulations, FTA may require corrective measures and remedies, including withholding an amount of federal assistance as provided in FTA’s Charter Service regulations, 49 C.F.R. part 604, appendix D, or barring it or the Third Party Participant from receiving federal assistance provided in 49 U.S.C. chapter 53, 23 U.S.C. § 133, or 23 U.S.C. § 142. Section 29. School Bus Operations. a. Prohibitions. The Subrecipient agrees that neither it nor any Third Party Participant that is participating in its Award will engage in school bus operations exclusively for the transportation of students or school personnel in competition with private school bus operators, except as permitted by federal transit laws, 49 U.S.C. § 5323(f) or (g), FTA regulations, “School Bus Operations,” 49 C.F.R. part 605, and any other applicable federal “School Bus Operations” laws, regulations, federal requirements, or applicable federal guidance. b. Violations. If a Subrecipient or any Third-Party Participant has operated school bus service in violation of FTA’s School Bus laws, regulations, or requirements, FTA may require the Subrecipient or Third Party Participant to take such remedial measures as FTA considers appropriate, or bar the Subrecipient or Third Party Participant from receiving federal transit assistance. From Section 35 Substance Abuse c. Alcohol Misuse and Prohibited Drug Use. (1) Requirements. The Subrecipient agrees to comply and assures that its Third -Party Participants will comply with: (a) Federal transit laws, specifically 49 U.S.C. § 5331, (b) FTA regulations, “Prevention of Alcohol Misuse and Prohibited Drug Use in Transit Operations,” 49 C.F.R. part 655, and (c) Applicable provisions of U.S. DOT regulations, “Procedures for Transportation Workplace Drug and Alcohol Testing Programs,” 49 C.F.R. part 40. (2) Remedies for Non-Compliance. The Subrecipient agrees that if FTA determines that the Subrecipient or a Third-Party Participant receiving federal assistance under 49 U.S.C. chapter 53 is not in compliance with 49 C.F.R. part 655, the Federal Transit Administrator may bar that Subrecipient or Third Party Participant from receiving all or a portion of the federal transit assistance for public transportation it would otherwise receive. Applicable to Planning, Research, Development, and Documentation Projects Section 17. Patent Rights. a. General. The Subrecipient agrees that: (1) Depending on the nature of the Agreement, the Federal Government may acquire patent rights when the Subrecipient or Third-Party Participant produces a patented or patentable invention, improvement, or discovery; (2) The Federal Government’s rights arise when the patent or patentable information is conceived or reduced to practice with federal assistance provided through the Agreement; or (3) When a patent is issued or patented information becomes available as described in the preceding section 17.a.(2) of this Master Agreement (FTA MA(23)), the Subrecipient will notify FTA immediately and provide a detailed report satisfactory to FTA. b. Federal Rights. The Subrecipient agrees that: (1) Its rights and responsibilities, and each Third-Party Participant’s rights and responsibilities , in that federally assisted invention, improvement, or discovery will be determined as provided in applicable federal laws, regulations, requirements, and guidance, including any waiver thereof, and (2) Unless the Federal Government determines otherwise in writing, irrespective of its status or the status of any Third Party Participant as a large business, small business, state government, state instrumentality, local government, Indian tribe, nonprofit organization, institution of higher education, or individual, the DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 68 Contract Number: 21-HTR-ZL-00308/491002610 Page 41 of 45 Version 10/23/19 Subrecipient will transmit the Federal Government’s patent rights to FTA, as specified in 35 U.S.C. § 200 et seq., and U.S. Department of Commerce regulations, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” 37 C.F.R. part 401. c. License Fees and Royalties. Consistent with the applicable U.S. DOT Common Rules, the Subrecipient agrees that license fees and royalties for patents, patent applications, and inventions produced with federal assistance provided through the Agreement are program income and must be used in compliance with applicable federal requirements. Section 18. Rights in Data and Copyrights. a. Definition of “Subject Data.” As used in this section, “subject data” means recorded information whether or not copyrighted, and that is delivered or specified to be delivered as required by the Agreement. Examples of “subject data” include, but are not limited to computer software, standards, specifications, engineering drawings and associated lists, process sheets, manuals, technical reports, catalog item identifications, and related information, but do not include financial reports, cost analyses, or other similar information used for performance or administration of the Agreement. b. General Federal Restrictions. The following restrictions apply to all subject data first produced in the performance of the Agreement: (1) Prohibitions. The Subrecipient may not publish or reproduce any subject data, in whole, in part, or in any manner or form, or permit others to do so. (2) Exceptions. The prohibitions do not apply to publications or reproductions for the Subrecipient’s own internal use, an institution of higher learning, the portion of subject data that the Federal Government has previously released or approved for release to the public, or the portion of data that has the Federal Government’s prior written consent for release. c. Federal Rights in Data and Copyrights. The Subrecipient agrees that: (1) General. It must provide a license to its “subject data” to the Federal Government that is royalty -free, non- exclusive, and irrevocable. The Federal Government’s license must permit the Federal Government to reproduce, publish, or otherwise use the subject data or permit other entities or individuals to use the subject data provided those actions are taken for Federal Government purposes, and (2) U.S. DOT Public Access Plan – Copyright License. The Subrecipient grants to U.S. DOT a worldwide, non- exclusive, non-transferable, paid-up, royalty-free copyright license, including all rights under copyright, to any and all Publications and Digital Data Sets as such terms are defined in the U.S. DOT Public Access plan, resulting from scientific research funded either fully or partially by this funding agreement. The Subrecipient herein acknowledges that the above copyright license grant is firs t in time to any and all other grants of a copyright license to such Publications and/or Digital Data Sets, and that U.S. DOT shall have priority over any other claim of exclusive copyright to the same. d. Special Federal Rights in Data for Research, Development, Demonstration, Deployment, Technical Assistance, and Special Studies Programs. In general, FTA’s purpose in providing federal assistance for a research, development, demonstration, deployment, technical assistance, or special studies program is to increase transportation knowledge, rather than limit the benefits of the Award to the Subrecipient and its Third-Party Participants. Therefore, the Subrecipient agrees that: (1) Publicly Available Report. When an Award providing federal assistance for any of the programs described above is completed, it must provide a report of the Agreement that FTA may publish or make available for publication on the Internet. (2) Other Reports. It must provide other reports related to the Award that FTA may request. (3) Availability of Subject Data. FTA may make available its copyright license to the subject data, and a copy of the subject data to any FTA Recipient or any Third -Party Participant at any tier, except as the Federal Government determines otherwise in writing. (4) Identification of Information. It must identify clearly any specific confidential, privileged, or proprietary information submitted to FTA. (5) Incomplete. If the Award is not completed for any reason whatsoever, all data developed with federa l assistance for the Award becomes “subject data” and must be delivered as the Federal Government may direct. (6) Exception. This section does not apply to an adaptation of any automatic data processing equipment or program that is both for the Subrecipient’s use and acquired with FTA capital program assistance. e. License Fees and Royalties. Consistent with the applicable U.S. DOT Common Rules, the Subrecipient agrees that license fees and royalties for patents, patent applications, and inventions produced with federal assistance provided through the Agreement are program income and must be used in compliance with federal applicable requirements. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 69 Contract Number: 21-HTR-ZL-00308/491002610 Page 42 of 45 Version 10/23/19 f. Hold Harmless. Upon request by the Federal Government, the Subrecipient agrees that if it intentionally violates any proprietary rights, copyrights, or right of privacy, and if its violation under the preceding section occurs from any of the publication, translation, reproduction, delivery, use or disposition of subject data, then it will indemnify, save, and hold harmless against any liability, including costs and expenses of the Federal Government’s officers, employees, and agents acting within the scope of their official duties. The Subrecipient will not be required to indemnify the Federal Government for any liability described in the preceding sentence, if the violation is caused by the wrongful acts of federal officers, employees or agents, or if indemnification is prohibited or limited by applicable state law. g. Restrictions on Access to Patent Rights. Nothing in this section of this Master Agreement (FTA MA(23)) pertaining to rights in data either implies a license to the Federal Government under any patent, or may be construed to affect the scope of any license or other right otherwise granted to the Feder al Government under any patent. h. Data Developed Without Federal Assistance or Support. The Subrecipient agrees that in certain circumstances it may need to provide to FTA data developed without any federal assistance or support. Nevertheless, this section generally does not apply to data developed without federal assistance, even though that data may have been used in connection with the Award. The Subrecipient agrees that the Federal Government will not be able to protect data developed without federal assistance from unauthorized disclosure unless that data is clearly marked “Proprietary,” or “Confidential.” i. Requirements to Release Data. The Subrecipient understands and agrees that the Federal Government may be required to release data and information the Subrecipient submits to the Federal Government as required under: (1). The Freedom of Information Act (FOIA), 5 U.S.C. § 552, (2) The U.S. DOT Common Rules, (3) U.S. DOT Public Access Plan, which provides that the Subrecipient agrees to satisfy the reporting and compliance requirements as set forth in the U.S. DOT Public Access plan, including, but not limited to, the submission and approval of a Data Management Plan, the use of Open Researcher and Contributor ID (ORCID) numbers, the creation and maintenance of a Research Project record in the Transportation Research Board’s (TRB) Research in Progress (RiP) database, and the timely and complete submission of all required publications and associated digital data sets as such terms are defined in the DOT Public Access plan. Additional information about how to comply with the requirements can be found at: http://ntl.bts.gov/publicaccess/howtocomply.html, or (4) Other federal laws, regulations, requirements, and guidance concerning access to records pertai ning to the Award, the accompanying Agreement, and any Amendments thereto. Miscellaneous Special Requirements From Section 12. Civil Rights. a. Disadvantaged Business Enterprise (and Prompt Payment and Return of Retainage). To the extent authorized by applicable federal laws, regulations, or requirements, the Subrecipient agrees to facilitate, and assures that each Third-Party Participant will facilitate, participation by small business concerns owned and controlled by socially and economically disadvantaged individuals, also referred to as “Disadvantaged Business Enterprises” (DBEs), in the Agreement as follows: (1) Statutory and Regulatory Requirements. The Subrecipient agrees to comply with: (a) Section 1101(b) of the FAST Act, 23 U.S.C. § 101 note, (b) U.S. DOT regulations, “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs,” 49 C.F.R. part 26, and (c) Federal transit law, specifically 49 U.S.C. § 5332, as provided in section 12 of this Mast er Agreement (FTA MA(23)). (2) DBE Program Requirements. A Subrecipient that receives planning, capital and/or operating assistance and that will award prime third-party contracts exceeding $250,000 the requirements of 49 C.F.R. part 26. (3) Special Requirements for a Transit Vehicle Manufacturer (TVM). The Subrecipient agrees that: (a) TVM Certification. Each TVM, as a condition of being authorized to bid or propose on FTA-assisted transit vehicle procurements, must certify that it has complied with the requirements of 49 C.F.R. part 26, and (b) Reporting TVM Awards. Within 30 days of any third -party contract award for a vehicle purchase, the Subrecipient must submit to FTA the name of the TVM contractor and the total dollar value of the third party contract, and notify FTA that this information has been attached to FTA’s electronic award management system. The Subrecipient must also submit additional notifications if options are exercised in subsequent years to ensure that the TVM is still in good standin g. (4) Assurance. As required by 49 C.F.R. § 26.13(a): (a) Recipient Assurance. The Subrecipient agrees and assures that: DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 70 Contract Number: 21-HTR-ZL-00308/491002610 Page 43 of 45 Version 10/23/19 1 It must not discriminate on the basis of race, color, national origin, or sex in the award and performance of any FTA or U.S. DOT-assisted contract, or in the administration of its DBE program or the requirements of 49 C.F.R. part 26, 2 It must take all necessary and reasonable steps under 49 C.F.R. part 26 to ensure nondiscrimination in the award and administration of U.S. DOT assisted contracts, 3 Its DBE program, as required under 49 C.F.R. part 26 and as approved by U.S. DOT, is incorporated by reference and made part of the Underlying Agreement, and 4 Implementation of its DBE program approved by U.S. DOT is a legal obligation and failure to carry out its terms shall be treated as a violation of the Master Agreement (FTA MA(23)). (b) Subrecipient/Third Party Contractor/Third Party Subcontractor Assurance. The Subrecipient agrees and assures that it will include the following assurance in each subagreement and third-party contract it signs with a Subrecipient or Third-Party Contractor and agrees to obtain the agreement of each of its Subrecipients, Third Party Contractors, and Third Party Subcontractors to include the following assurance in every subagreement and third party contract it signs: 1 The Subrecipient, each Third-Party Contractor, and each Third-Party Subcontractor must not discriminate on the basis of race, color, national origin, or sex in the award and performance of any FTA or U.S. DOT-assisted subagreement, third party contract, and third party subcontract, as applicable, and the administration of its DBE program or the requirements of 49 C.F.R. part 26, 2 The Subrecipient, each Third-Party Contractor, and each Third-Party Subcontractor must take all necessary and reasonable steps under 49 C.F.R. part 26 to ensure nondiscrimination in the award and administration of U.S. DOT-assisted subagreements, third party contracts, and third party subcontracts, as applicable, 3 Failure by the Subrecipient and any of its Third Party Contractors or Third Party Subcontractors to carry out the requirements of subparagraph 12.e(4)(b) (of FTA MA(23)) is a material breach of their subagreement, third party contract, or third party subcontra ct, as applicable, and 4 The following remedies, or such other remedy as the Subrecipient deems appropriate, include, but are not limited to, withholding monthly progress payments; assessing sanctions; liquidated damages; and/or disqualifying the Subrecipient, Third Party Contractor, or Third -Party Subcontractor from future bidding as non-responsible. (5) Remedies. Upon notification to the Subrecipient of its failure to carry out its approved program, FTA or U.S. DOT may impose sanctions as provided for under 49 C.F.R. part 26, and, in appropriate cases, refer the matter for enforcement under either or both 18 U.S.C. § 1001, and/or the Program Fraud Civil Remedies Act of 1986, 31 U.S.C. § 3801 et seq. From Section 12. Civil Rights. b. Nondiscrimination on the Basis of Disability. The Subrecipient agrees to comply with the following federal prohibitions against discrimination on the basis of disability: (1) Federal laws, including: (a) Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 794, which prohibits discrimination on the basis of disability in the administration of federally assisted Programs, Projects, or activities, (b) The Americans with Disabilities Act of 1990 (ADA), as amended, 42 U.S.C. § 12101 et seq., which requires that accessible facilities and services be made available to individuals with disabilities: 1 For FTA Recipients generally, Titles I, II, and III of the ADA apply, but 2 For Indian Tribes, Titles II and III of the ADA apply, but Title I of the ADA does not apply because it exempts Indian Tribes from the definition of “employer,” (c) The Architectural Barriers Act of 1968, as amended, 42 U.S.C. § 4151 et seq., which requires that buildings and public accommodations be accessible to individuals with disabilities, (d) Federal transit law, specifically 49 U.S.C. § 5332, which now includes disability as a prohibited basis for discrimination, and (e) Other applicable federal laws, regulations, and requirements pertaining to access for seniors or individuals with disabilities. (2) Federal regulations and guidance, including: (a) U.S. DOT regulations, “Transportation Services for Individuals with Disabilities (ADA),” 49 C.F.R. part 37, (b) U.S. DOT regulations, “Nondiscrimination on the Basis of Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance,” 49 C.F.R. part 27, (c) Joint U.S. Architectural and Transportation Barriers Compliance Board (U.S. ATBCB) and U.S. DOT regulations, “Americans With Disabilities (ADA) Accessibility Specifications for Transportation Vehicles,” 36 C.F.R. part 1192 and 49 C.F.R. part 38, DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 71 Contract Number: 21-HTR-ZL-00308/491002610 Page 44 of 45 Version 10/23/19 (d) U.S. DOT regulations, “Transportation for Individuals with Disabilities: Passenger Vessels,” 49 C.F.R. part 39, (e) U.S. DOJ regulations, “Nondiscrimination on the Basis of Disability in State and Local Government Services,” 28 C.F.R. part 35, (f) U.S. DOJ regulations, “Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities,” 28 C.F.R. part 36, (g) U.S. EEOC, “Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act,” 29 C.F.R. part 1630, (h) U.S. Federal Communications Commission regulations, “Telecommunications Relay Services and Related Customer Premises Equipment for Persons with Disabilities,” 47 C.F.R. part 64, Subpart F, (i) U.S. ATBCB regulations, “Electronic and Information Technology Accessibility Standards,” 36 C.F.R. part 1194, (j) FTA regulations, “Transportation for Elderly and Handicapped Persons,” 49 C.F.R. part 609, (k) FTA Circular 4710.1, “Americans with Disabilities Act: Guidance,” and (l) Other applicable federal civil rights and nondiscrimination regulations and guidance . Section 16. Procurement. For Assignability a. Federal Laws, Regulations, Requirements, and Guidance. The Subrecipient agrees: (1 To comply with the requirements of 49 U.S.C. chapter 53 and other applicable federal laws, regulations, and requirements in effect now or later that affect its third-party procurements, (2) To comply with the applicable U.S. DOT Common Rules, and (3) To follow the most recent edition and any revisions of FTA Circular 4220.1, “Third Party Contracting Guidance,” to the extent consistent with applicable federal laws, regulations, requirements, and guidance. State Requirements Section 37. Special Notification Requirements for States. a. Types of Information. To the extent required under federal law, the State, agrees to provide the following information about federal assistance awarded for its State Program, Project, or related activities: (1) The Identification of FTA as the federal agency providing the federal assistance for a State Program or Project, (2) The Catalog of Federal Domestic Assistance Number of the program from which the federal assistance for a State Program or Project is authorized, and (3) The amount of federal assistance FTA has provided for a State Program or Project. b. Documents. The State agrees to provide the information required under this provision in the following documents: (1) applications for federal assistance, (2) requests for proposals, or solicitations, (3) forms, (4) notifications, (5) press releases, and (6) other publications.. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 72 Contract Number: 21-HTR-ZL-00308/491002610 Page 45 of 45 Version 10/23/19 EXHIBIT E, VERIFICATION OF PAYMENT This checklist is to assist the Subrecipient in preparation of its billing packets to State. This checklist is provided as guidance and is subject to change by State. State shall provide notice of any such changes to Subrecipient. All items may not apply to your particular entity. State’s goal is to reimburse Subrecipients as quickly as possible and a well organized and complete billing packet helps to expedite payment. Verification of Payment –  General Ledger Report must have the following:  Identify check number or EFT number;  If no check number is available, submit Accounts Payable Distribution report with the General Ledger;  In-Kind (must be pre-approved by State) and/or cash match;  Date of the report;  Accounting period;  Current period transactions; and  Account coding for all incurred expenditures.  If no General Ledger Report, all of the following are acceptable :  copies of checks;  check registers; and  paycheck stub showing payment number, the amount paid, the check number or electronic funds transfer (EFT), and the date paid.  State needs to ensure that expenditures incurred by the local agencies have been paid by Party before State is invoiced by Party.  Payment amounts should match the amount requested on the reimbursement. Additional explanation and documentation is required for any variances. In-Kind or Cash Match – If an entity wishes to use these types of match, they must be approved by State prior to any Work taking place.  If in-kind or cash match is being used for the Local Match, the in-kind or cash match portion of the project must be included in the project application and the statement of work attached to the Agreement or purchase order. FTA does not require pre-approval of in-kind or cash match, but State does.  General ledger must also show the in-kind and/or cash match. Indirect costs – If an entity wishes to use indirect costs, the rate must be approved by State prior to applying it to the reimbursements.  If indirect costs are being requested, an approved indirect letter from State or your cognizant agency for indirect costs, as defined in 2 CCR §200. 19, must be provided. The letter must state what indirect costs are allowed, the approved rate and the time period for the approval. The indirect cost plan must be reconciled ann ually and an updated letter submitted each year thereafter. Fringe Benefits- Considered part of the Indirect Cost Rate and must be reviewed and approved prior to including these costs in the reimbursements.  Submit an approval letter from the cognizant agency for indirect costs, as defined in 2 CCR §200. 19, that verifies fringe benefit, or  Submit the following fringe benefit rate proposal package to State Audit Division:  Copy of Financial Statement;  Personnel Cost Worksheet;  State of Employee Benefits; and  Cost Policy Statement. DocuSign Envelope ID: 50C083F8-B11A-4838-8691-8D49E75F04F6 Page 73       Page 74 FINANCE DEPARTMENT Memo To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Duane Hudson, Finance Director Date: August 24, 2021 RE: Accept Delivery of the Audited Financial Statements for the Year Ending December 31, 2020 (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER QUASI-JUDICIAL YES NO Objective: Formally accept the Haynie & Company audit of the Annual Financial Report (AFR), including the Single Audit Reports, for the year ended December 31, 2020. Present Situation: The Town of Estes Park has received the annual audit of its financial statements as required by State Statute CRS 29-1-603 and, when applicable, the Federal Single Audit Act. The AFR has been posted online on the Finance webpage at: 2020 Annual Financial Report The audit covers both the Town’s operations and Visit Estes Park (VEP) as a required component unit. Note 1 Summary of Significant Accounting Policies on page 10 of the AFR explains the inclusion of VEP in the reporting entity. Ty Holman, Audit Partner and Abbey Irvine, Senior Auditor with Haynie & Company, met virtually with the audit committee on Aug 11, 2021 at 4:00 pm to review the AFR and results of the audit. The independent auditor’s report expressed an unmodified (“clean”) opinion that the financial statements presented fairly, in all material respects, the financial positon of the funds and activities of the Town of Estes Park in conformity with Generally Accepted Accounting Principles (GAAP). This is the first year the audit was performed by this firm. To comply with State Statute filing deadlines as well as grant and bond filing deadlines, the AFR has already been filed with the appropriate agencies. This action item is to formally acknowledge the receipt of the audit by the Town Board, as recommended by the audit committee. Page 75 You will notice an attempt by the Finance Department to change reoccurring references to the Comprehensive Annual Financial Report to simply the Annual Financial Report. The previous four letter acronym, CAFR, is pronounced the same way as a profoundly offensive racial slur in South Africa most often associated with the apartheid regime. Also, the pronunciation is similar to a controversial meaning in Arabic for those who practice Islam. Out of respect, the Government Finance Officers Association (GFOA) issued a policy statement earlier this year in an effort to eliminate the use of this acronym in the future. As a common term used for the last 30 years or more, it will be difficult to eliminate old habits but we are attempting to do so. As a result, we have changed our website pages and will be endeavoring to remove this reference in future years. A copy of the GFOA policy statement has been attached hereto. Additional information can be found on the GFOA website at: GFOA End the Acronym FAQ Proposal: Approve the audit committee’s recommendation to accept the audit report and AFR as presented. Advantages: This will demonstrate compliance with State Statutes, bond covenants, and grantor requirements. Disadvantages: None identified. Action Recommended: The audit committee, by unanimous consent, referred the acceptance of the audit report and AFR for the year ended Dec 31, 2020 to the Town Board for consideration. Finance/Resource Impact: The audit is an ongoing annual obligation budgeted within the three following accounts: 101-1500-415-22-01, 502-6501-560-22-01, 503-6500-560-22-01 The total fee for the audit of the 2020 AFR was $49,000. This is within the budgeted amount for the audit of $54,500. Level of Public Interest I have received no inquiries or comments from the public regarding this AFR. Sample Motion: I move for the approval/denial of acceptance of the audit report and Annual Financial Report for the year ended December 31, 2020. Attachments: 1. Management Letter 2. GFOA End the Acronym Policy Statement 3. 2020 Annual Financial Report – Available online at: 2020 Annual Financial Report (hard copy distributed separately) Page 76 Certified Public Accountants & Management Consultants 1221 W. Mineral Avenue, Suite 202 Littleton, CO 80120 303-734-4800 303-795-3356 www.HaynieCPAs.com An Association of Independent Accounting Firms July 23, 2021 To the Board of Trustees and Management Town of Estes Park, Colorado We have audited the financial statements of Town of Estes Park, Colorado (the “Town”) for the year ended December 31, 2020, and have issued our report thereon dated June 25, 2021. Professional standards require that we provide you with the following information related to our audit. Our responsibility under U.S Generally Accepted Auditing Standards was provided to you in the engagement letter dated December 28, 2020. This letter also communicated the general scope and timing of our audit; any significant updates have been verbally communicated. We have also requested and received written representations from management regarding the financial statements. A copy of this letter can be provided to you upon request. Significant Accounting Policies The significant accounting policies used by the Town are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies did not materially change during 2020. We noted no transactions entered into by the Town during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: •Management’s estimate of the depreciable lives and estimated residual value of property and equipment is based on prior management experience. We evaluated the key factors and assumptions used to develop the depreciable lives and estimated residual value in determining that it is reasonable in relation to the financial statements taken as a whole. •The estimates of the net pension and OPEB liabilities are based on actuarial valuations, which make certain assumptions and estimations. We reviewed the valuations and key assumptions and found them to be reasonable. •The Town estimates the year-end self-insurance claims payable. This estimate is based on past experience and expected results. We reviewed the calculation of this liability and the key assumptions used to determine it, and consider the estimated liability to consistent with expectations. Attachment 1 Page 77 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. Disagreements with Management None. Consultations with Other Independent Accountants None of which we are aware. Significant Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Town’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Significant Difficulties Encountered in Performing the Audit None. Other Matters We applied certain limited procedures to the management’s discussion and analysis and required supplementary information (RSI), as listed in the table of contents. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the budgetary comparison schedules, combining and individual nonmajor fund financial statements listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section, statistical section and Local Highway Finance Report which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Page 78 Other Findings or Issues Noted During the Audit Audit Observations: During our engagement, we reviewed schedules that could not be converted to excel easily, and noted some processes that are manual due to system features that limit automation. Additionally, we noted the current accounting system cannot create functional financial statements. In our experience, a more robust ERP system can eliminate department inefficiencies and provide robust reporting that can aid the Town with overall monitoring. This information is intended solely for the use of the Town Board and management of the Town of Estes Park, Colorado and is not intended to be and should not be used by anyone other than these specified parties. Sincerely, Page 79 GFOA Policy Statement Issued March 9, 2021 Proper Referencing of the Comprehensive Annual Financial Report –An Inclusivity Concern - Purpose: The purpose of this policy is to outline an intentional change in the professional standards and expectations of government finance professionals and their industry affiliates as it relates to the formal and day-to-day discussion of Comprehensive Annual Financial Reports. Applies To: -All GFOA members -All GFOA employees -Media partners, especially those covering government and financial news and analysis -The broader national bond management and government finance community Overview: The Government Finance Officers Association (GFOA) is asking all industry affiliates to immediately stop using the common four-letter acronym most often associated with the Comprehensive Annual Financial Report. Instead, GFOA recommends referring to the report by either the full name or by using a shortened format that does not include the four-letter acronym. For instance, the “Annual Report” is advised, the four-letter acronym even pronounced by saying each letter individually is still not advised. This policy change is the result of a new and evolving industry understanding that the acronym, when pronounced aloud, mimics the pronunciation of a deeply derogatory term often used in other parts of the world but readily recognized among certain populations in the United States as well. Attachment 2 Page 80 As an organization made up of 21,000 finance professionals that serve diverse communities across the country, and a growing list of important partners around the world, GFOA believes it is the responsibility of all government finance professionals to embrace change that moves us towards becoming more thoughtful, responsible, and inclusive global citizens. Background: Recently it came to the attention of GFOA leadership that this four-letter acronym, frequently leveraged in the government financial accounting industry to shorten the name of the Comprehensive Annual Financial Report, is pronounced the same way as a profoundly offensive racial slur in South Africa. The offensive version of this term is most often associated with the atrocities of the apartheid regime. Separately, a similar pronunciation also has a deeply controversial meaning in Arabic for those who practice Islam. While GFOA serves governments in the US and Canada, the organization has significant international partners, including in South Africa through the Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO). Much of the research, best practices, and programs that GFOA produces are relevant to, and recognized by, government finance officers around the world. Through the years, GFOA has been a leading partner helping to build financial best practices in South Africa’s emerging democracy. GFOA’s leadership team understands that there may always be biases and concerns of which we are unaware, but has determined, with significant member input, that when confronted with new information on how our words or actions may negatively impact a particular group, it is our collective professional responsibility to give that information serious consideration. While GFOA recognizes that the spellings of the South African slur, the Arabic term, and the acronym are different – as are the contexts in which they are used – the organization has determined that as influential community leaders with a shared commitment to diversity, equity, and inclusion, there is a responsibility to act. While doing so, GFOA and our partners can demonstrate our values in action, become more inclusive, and create safer spaces for the important work that we conduct. Timeline: Effective Immediately, no end-date identified Resources: End the Acronym – Fact Sheet FAQ Document Page 81       Page 82 FINANCE DEPARTMENT Memo To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Duane Hudson, Finance Director Date: Aug 24, 2021 RE: Appointment of Haynie & Company to Perform the Audit of the Annual Financial Report for the Year Ending December 31, 2021 (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER QUASI-JUDICIAL YES NO Objective: Appointment of Haynie & Company to perform the audit for the year ending December 31, 2021. Present Situation: As required by state statute, grant agreements and other regulations, the Town is required to have an annual audit of its Annual Financial Report (AFR). Haynie & Company was appointed on Jan 12, 2021 to perform the audit of the Town’s 2020 AFR. This action item is to appoint Haynie & Company to perform the Town’s audit of the 2021 AFR, which will be the second year of a five year engagement. Proposal: Since the auditor works on behalf of the Town’s Audit Committee and the full Town Board, the audit committee recommends that the Town Board formally approve re- appointment of Haynie & Company to audit the 2021 AFR. Advantages: The Town is required by state statute and by grantor agreements to have an annual audit conducted by a qualified CPA firm. This action will demonstrate continued compliance with this requirement. Disadvantages: None identified. Action Recommended: The Audit Committee and the Finance Department is recommending appointment of Haynie & Company to conduct the audit of the 2021 AFR. Page 83 Finance/Resource Impact: The audit is an ongoing annual obligation budgeted within the three following accounts: 101-1500-415-22-01, 502-6501-560-22-01, 503-6500-560-22-01 The total fee for the audit of the 2021 AFR was $50,250. This is within the budgeted amount for the audit of $60,500. Level of Public Interest No comments or inquiries have been received regarding this appointment. Sample Motion: I move for the approval/denial to award the engagement for the financial statement audit for the year ended December 31, 2021 to Haynie & Company. Page 84 UTILITIES Memo To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Utilities Director Bergsten Date: August 24, 2021 RE: Utilities Reorganization and Staffing Increase (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER ACTION QUASI-JUDICIAL YES NO Objective: To provide efficient, reliable, and high-quality utility services by reducing the workload and fee for services charged by the consultants and contractors hired to implement broadband valley wide while improving efficiencies through direct management/supervision of staff by creating new positions. Present Situation: The Utilities department workload has increased with the addition of the implementation and ongoing operations of Trailblazer Broadband and the Water Division's USDA financed capital projects. Staff has been excited to cultivate these improvements, and initially absorb the additional workload; however, the long hours are unsustainable and staff often find themselves reacting to issues instead of proactively addressing them. Trailblazer Broadband is transitioning from a startup to the scale-up and growth phases of the business plan. Our consultants and contractors have developed a Call Center, Sales, Marketing, Network Operations, and physical fiber-optic infrastructure. Transitioning from startup to scale-up includes a transfer of the workload away from the consultants and contractors. The Water Division is also experiencing a workload increase which requires specific project management skills that exceed the current staff’s ability to effectively absorb with ongoing workload or other staff members skillset. The USDA has financed $21 million of improvements to the Glacier Treatment Plant and Prospect Mountain water system. Proposal: The proposed reorganization of Utilities will establish direct management of Trailblazer Broadband operations to increase workflow efficiency and reduce the costs of Page 85 consultants/contractors. Transitioning six (6) positions to Town employees will allow current over worked Town staff to focus on their core responsibilities and be more proactive. The reorganization will add one FTE, Utilities Business Manager, and add a Lead Fiber Technician to provide direct and efficient day-to-day oversight for the fiber crew through an internal hire, which would not create a change in headcount. August 2021, Proposed Position Number of FTE’s Outsourced/ Current Cost Proposed, with Benefits Cost Impact, Annual Utilities Business Manager 1, Utilities Absorbed by existing staff $131,000 $131,000 Customer Service Representatives 2, Trailblazer Broadband $109,242 $130,000 $ 20,758 Customer Experience Manager 1, Trailblazer Broadband $ 94,078 $100,000 $ 5,922 Broadband Network Tech 1, Trailblazer Broadband $141,440 $ 90,000 -$51,440 Broadband Installation Tech 1, Trailblazer Broadband $141,440 $ 75,000 -$66,440 Lead Fiber Tech 0, Internal Hire $ 90,000 $108,000 $18,000 Net impact $ 57,800 Note: Town Board approval is required to add long-term positions. Trailblazer bond funds cover these positions through 2022. After 2022 Trailblazer operating revenues will be used to fund these positions. Staff further proposes the hiring of three limited-term contract support staff to complete grant and bond funded projects which have specific end dates for completion. Two positions will support the capital construction of our smart grid/Broadband infrastructure, and one position will be a limited term contract employee or consultant to support the Water Division’s capital projects. We will use Board-approved capital project funds for these limited-term positions. Position Number of FTE’s Outsourced/ Current Cost Proposed, with Benefits Cost Impact, Annual Notes Limited Term Capital Projects Support 1, Water, capital projects Absorbed by existing staff $165,000 $165,000 USDA Financed Project Funds Net impact to Water projects $165,000 Limited Term Groundworkers 2, Smart Grid/Trailblazer Broadband $291,200 $165,000 -$126,200 Bond Funded Net Trailblazer Broadband/Smart Grid -$126,200 Advantages: ● Increased efficiency from unmediated management and direction of staff ● Reduced consultant/contractor costs by transferring workload to in-house staff ● The additional support will help transition our work from urgent/crisis management to planning, prevention, and continuous improvement Page 86 ● The addition of capital project support will allow focused time and effort to jump- start the USDA projects ● Existing management staff should see more manageable workloads leading to improved job satisfaction and work/life balance Disadvantages: ● The addition of upper-level management increases costs; however, this was expected with the addition of Trailblazer Broadband. Additionally, our organizational goals to mature into a performance-based management organization requires additional management support. ● The addition of the limited-term contract or consultant project management support does increase overall costs on a temporary basis; however, the approximate 100% increase in workload requires additional limited-term capital project support, funded with capital project budgets. ● Additional office space is required; however, the new Trailblazer Broadband office was purchased and remodel to accommodate the new community owned and operated broadband service. Action Recommended: Staff recommends the Town Board approve the proposed reorganization and addition of Utilities’ staff. Finance/Resource Impact: Trailblazer Broadband/Smart Grid, Fund 502, Project Code “TBNBND” The bond funds are allocated through 2022. Future Trailblazer Broadband revenues will support the ongoing costs beyond 2022. Water, fund 503, Glacier Pretreatment project and Prospect Mountain Water system. The project funds are allocated; however, the additional capital project support will likely increase the projects’ costs an estimated 2.4% or $500,000. Level of Public Interest High, the success of our community-owned Trailblazer Broadband service combined with the modernization of the electric grid (smart grid) will provide modern high-speed internet connections while enabling increased renewable energy resources on the grid. Sample Motion: I move for the approval of the reorganization. Attachments: 1. Utilities Organization Chart 2. Power and Communications Organization Chart 3. Utilities Reorganization Documentation Page 87 Power and Communications Utilities Department Director Additional Marketing Outsourced 4 Customer Experience Manager Customer Service Rep DRAFT Work Product P&C Line Superintendent Utilities Business Manager Utilities Operations (Sales, Marketing, Customer Care, Budgeting, Capital Planning) Limited Term Contract Capital Project Support3 Project Manager Capital and Development 100% P&C Fractional Chief Technology Officer 5 GIS Outsourced Water Water Superintendent Utilities Admin. Assistant Notes 1) IGA with Fort Collins and Loveland provides Technical Service Reps, Network Administrators and Network Engineers. 2) Estrategy3 LLC 3)Contract Position billed to capital projects; $11M PMWC, $13M Glacier Pretreatment, $40M Glacier Plant rebuild. 4) Old Town Media 5) Fullstack Inc. NEW Full Time Positions Call Center, Sales & Marketing Support2 IGA with Fort Collins and Loveland 1 Utilities Coordinator Customer Service Rep Attachment 1 Page 88 Outside Plant SCADA, Smart Grid, GPON P&C Superintendent Meter Tech Power and Communications Operations Apprentice Lineworker Utility Field Specialist Contracted Broadband Field Techs Lead Line Equipment Specialist Groundworker Line Equipment Specialist Inventory Specialist Line Supervisor Lead LineworkerLead Lineworker Apprentice Groundworker Apprentice Lineworker Apprentice Lineworker Apprentice Lineworker Ground worker Apprentice Lineworker Tree trimming supports capital construction so the same crew supervisor oversees them The Line Crew including Line Equipment Specialists and Ground Workers are rotated between the four crews Fractional CTO DRAFT Work Product AMI Coordinator Line Supervisor Contractors: Tree Trimming Seasonal Lights Boring SCADA (PRPA, Contractor) Smart Grid Manager reports to P&C manager, relies on Service Crew to install field instrumentation and telecommunications Capital Construction Fiber Tech 33.5575 Proposed NEW HEADCOUNT For Trailblazer Existing Vacant Position (1) Contractor or Contract Employee New Position No Additional FTE Lead Lineworker Apprentice/Journey fiber override in high voltage conduit Construction Support Services (for all crews) Service Crew Metering, External Work Orders (Development) Internal Work Orders (examples: maintenance, repair, primary outage response team) Temp Water meter Fiber OSP requires work in the hot zone which requires Journey Lineworkers or second year apprentice on the OSP crew. Broadband Network Technician Lead Fiber Tech Pending approval Internal Advertising IGA provides NOC, Engineering, 24/7 Call Center CSRs, TSRs Apprentice/Journey fiber override in high voltage conduitBroadband Install Technician Limited Term Contract Ground Worker Limited Term Contract Ground Worker Attachment 2 Page 89 Utilities Phase 2 Reorganization – August 10, 2021 Page 1 of 9 Utilities Reorganization Capital Construction Projects & Trailblazer Broadband August 2021 Executive Summary We recommend reorganizing the Utilities Department to accommodate Trailblazer Broadband operations and support the significant increase in capital construction projects. The Town has increased its efforts to rebuild its aging infrastructure, and we currently have $50 million of booked capital projects underway. These capital projects represent a tenfold increase over a typical year. For the past couple of years, staff has been fueled with excitement to make improvements, often working nights and weekends. The long hours are unsustainable and often result in reacting to issues instead of proactively addressing them. The recommended changes will increase efficiency through more effective management of both the short-term and long-term increased workload. In 2015, the Town citizens voted to take back their right to provide municipal broadband services. In 2019, the Town Board approved a $26 million bond to construct a Fiber To The Premise (FTTP) Gigabit Passive Optical Network (GPON) broadband internet service. We are leveraging consultants to startup the new service. Trailblazer is transitioning from a startup to the scale-up and growth phases as described in our business plan. Moving tasks from consults to in-house staff will improve management oversight and be more cost-effective. We anticipate another reorganization when Trailblazer transitions from growth to the operations phase of the business plan. The proposed reorganization includes the following changes: 1)Adding a Utilities Business Manager to oversee capital projects and Trailblazer Broadband business operations (New upper-level management position). 2)Adding a limited term project support position. 3)Creating Trailblazer Broadband positions at the Town of Estes Park: a)Broadband Customer Service Representatives x2 (currently provided by a consultant). b)Broadband Customer Experience Manager (currently provided by a consultant) c)Broadband Network Technician (currently provided by a consultant) d)Broadband Installation Technician (currently provided by a consultant) 4)Establishing a new position, Lead Fiber Tech, as an internal hire to oversee the outside plant fiber crew. 5)Adding two contracted Groundworkers (currently performed by contractors) Attachment 3 Page 90 Utilities Phase 2 Reorganization – August 10, 2021 Page 2 of 9 Objective Ensure the Utilities Department efficiently delivers reliable, high-quality, and well-maintained utility services for electric, water, and broadband customers. Present Situation and Justification for Recommendations Working through the growth of the Utilities Department has been exhilarating. Large capital construction projects are helping to rebuild our aging infrastructure while meeting our communities’ number one priority 1, modern high speed internet service provided by Trailblazer Broadband. The exhilaration and accompanying long hours have stretched the Utilities Department. These recommendations will improve our efficiency and provide much needed project support. 1) Adding an Utilities Business Manager Position Ten years ago, we made a conscious decision to remain small and lean at the management level while focusing time and funds on our aging infrastructure. As a result, the Utilities' base workload has increased approximately 50% without increasing upper-level management. The graph below shows a projected long-term increase of 30% in our base workload and a short-term workload increase of 100%. Financial transactions as a reflection of workload; i.e., every invoice must be reviewed and approved by staff. Over the last three and a half years, the Department's management staff has worked long hours to manage the utilities including the challenging startup of Trailblazer Broadband services. Today’s 1 Based on the 2018 Citizen Survey Page 91 Utilities Phase 2 Reorganization – August 10, 2021 Page 3 of 9 staffing levels can only focus on urgent issues as we do not have adequate management staff to work on departmental workflow efficiencies, policies, strategic planning, implementing performance- based management metrics, and other important but not as urgent needs. The addition of a Utilities Business Manager will add one position to oversee Trailblazer’s business operations (in house), support project management, and support overall Utilities management. 2) Adding Water Division Capital Project Support with a Limited Term Contract Employee or Consultant The current outlook for the water division includes $64 million in debt-financed capital construction projects to be completed over the next 5 to 8 years. This increase in projects will require additional capital project support. Capital Project Size ($) Estimated Duration Type Glacier Pre-Treatment $13 million 2 years USDA - contracted Prospect Mountain $11 million 4 years USDA - contracted Glacier Plant $40 million 4 years To Be Determined Spruce Knob Water System $1 million To Be Determined To Be Determined Annual Distribution Pipe (on- going) $1 million/ year Long-Term In-House Five years ago, our smaller workload allowed staff to multitask and meet multiple responsibilities. Today’s larger workload requires a division of labor so staff can narrower their area of responsibilities allowing them to efficiently and successfully complete our workload. For example, the Prospect Mountain Project and Glacier Pre-Treatment Plant Project are behind schedule. The Prospect Mountain project was financed in September 2018 and was estimated to be a four-year project. We are three years into the project and have yet to advertise for construction bids. Without dedicated project support for these projects, the Town may be at risk of losing USDA funds, delaying the projects. The Water Superintendent successfully managed the design phase of the Glacier Pre-Treatment project on top of their existing duties with late hours and weekend efforts; however, the project is now moving into the construction phase, requiring an increased commitment of time. We can see this project is beginning to run behind schedule, even with these extraordinary efforts. Additional project management support is necessary to oversee coordination between the finance department, a bond attorney, the Town attorney, special counsel, and the Town Board. This is not even considering the additional time necessary to manage the project once construction starts. Without additional capital project support, we are at jeopardy of not meeting regulatory standards pertaining to water, which would impact every member and guest of our community. The current Project Manager for utilities focuses the vast majority of their time on Trailblazer Broadband operations and construction. As a result, there is no available time to oversee other Page 92 Utilities Phase 2 Reorganization – August 10, 2021 Page 4 of 9 ongoing capital projects in the Department. We anticipate this position continuing to dedicate most of their time to broadband operations. The additional contracted capital project support will represent the Town in construction meetings, track the projects’ budgets, communicate with USDA Rural Development, complete and submit USDA forms, provide project updates and address complaints from the public. Most importantly, they will keep the projects moving forward. With the additional capital project support, existing staff can go back to focusing on their core responsibilities. We are recommending a contracted project support position or consultant; the position will be re- evaluated after 3 years, to determine if the position should become a full-time position or remain a contract/consultant position based on what will be the current and anticipated project needs. The capital project funds will pay for this additional support. 3) Creating Trailblazer Broadband positions at the Town of Estes Park The Town hired consultants FullStack, Inc. and eStrategies3, LLC, to implement Trailblazer Broadband. • FullStack serves as the network subject matter expert. They have hired and trained staff to startup the broadband network and perform customer installations. • eStrategies3 serves as the business operations subject matter expert. They have developed our call center, sales, and marketing operations. Trailblazer Broadband’s transition from a startup to scale-up/growth is underway. The indirect management of outsourced staff is inefficient and costly. We recommend transitioning some tasks from consultants to new full-time Town positions as listed in the job description. Direct management and employment of these new Town staff will lower our average cost of installation. The recommendations for additional staff are conservative to ensure we are “right-sized” for the long- term operations phase of our business model. Consultant support will continue over our scale-up and growth phases as we continue to mature the network and business operations. To provide more direct management over the broadband services and increase efficiency, we are recommending creating the following broadband positions at the Town of Estes Park: • Broadband Customer Service Representatives (two (2) positions), currently outsourced. • Broadband Customer Experience Manager, currently outsourced. • Broadband Network Technician, currently outsourced. • Broadband Installation Technician, currently outsourced. Adding an entry level Installation Technician will help us meet existing workload for installations while lowering the average installation cost. All of these positions are long-term to meet on-going customer service needs. Page 93 Utilities Phase 2 Reorganization – August 10, 2021 Page 5 of 9 4) Creating a Lead Fiber Technician Position We have learned Trailblazer is more efficient with one outside plant crew that also performs premise installation. We can eliminate the industry standard of having an inside plant crew by outsourcing some of the inside plant responsibilities through the Fort Collins/Loveland IGA and a fractional Chief Technology Officer. The outside plant fiber crew will be responsible for repairing fibers and constructing new fiber routes, in addition to premise installations. Creating a lead position will formally streamline operations and management of the fiber crew and their premise installation responsibilities. We recommend creating a Lead Fiber Technician position to schedule and oversee field operations of the outside plant fiber crew and premise installations. This will be an internal posting, therefore not creating additional headcount. 5) Adding Two Limited Term Contract Employee Groundworkers These two limited term contract Groundworkers will reduce contractor workload by completing field infrastructure along-side current Town staff and contractors. The cost savings is estimated to be $126,000 annually for the next three years. Recommendation The recommendation is to move forward with the advertising and hiring of the new proposed positions. The proposed P&C Organizational Chart can be seen in the Addendum A at the end of this document. Advantages ● Creating broadband positions at the Town will allow unmediated management and direction of staff, ultimately leading to more efficiency. ● Creating broadband positions at the Town will save money as there will not be a consulting fee. ● Additional support will help transition our workload focus from urgent/crisis management to planning, prevention and continuous improvement. ● Additional project management support will allow focus time and effort to jump start the USDA projects experiencing delays. ● Existing Management staff should see more manageable workloads. This will lead to improved job satisfaction and work/life balance. Disadvantages ● The addition of upper-level management support does increase costs; however, we are seeing a sustained workload increase of approximately 30% from 2012 levels. Additionally, our organizational goals to mature into a performance-based management organization requires additional management support. ● The addition of the limited term contract or consultant project management support does increase overall project costs; however, the approximate 100% increase in workload requires additional capital project management support, funded with capital project budgets. Page 94 Utilities Phase 2 Reorganization – August 10, 2021 Page 6 of 9 Ongoing positions for operations August 2021, Proposed Position Number of FTE’s Outsourced/ Current Cost Proposed, with Benefits Cost Impact, Annual Notes Utilities Business Manager 1, Utilities Absorbed by existing staff $131,000 $131,000 1 Customer Service Representatives 2, Trailblazer Broadband $109,242 $130,000 $ 20,758 1 Customer Experience Manager 1, Trailblazer Broadband $ 94,078 $100,000 $ 5,922 1 Broadband Network Tech 1, Trailblazer Broadband $141,440 $ 90,000 -$51,440 1 Broadband Installation Tech 1, Trailblazer Broadband $141,440 $ 75,000 -$66,440 1 Lead Fiber Tech 0, Internal Hire $ 90,000 $108,000 $18,000 1 Net impact $ 57,800 Note 1, Town Board approval is required to add long-term positions. Trailblazer bond funds cover these positions through 2022. After 2022 Trailblazer operating revenues will be used to fund these positions. Limited-term positions for capital projects Position Number of FTE’s Outsourced/ Current Cost Proposed, with Benefits Cost Impact, Annual Notes Limited Term Capital Project Support 1, Water, capital projects Absorbed by existing staff $165,000 $165,000 USDA Financed Project Funds Net impact to Water projects $165,000 Limited Term Groundworkers 2, Smart Grid/Trailblazer Broadband $291,200 $165,000 -$126,200 Bond Funded Net Trailblazer Broadband/Smart Grid -$126,200 Note: We will use Board-approved capital project funds for these limited-term positions. Page 95 Utilities Phase 2 Reorganization – August 10, 2021 Page 7 of 9 Summary The proposed reorganization will allow the Utilities Department to address current and ongoing project management needs associated with a backlog of debt financed capital improvement projects and provide much needed project management throughout the Utilities Department. This reorganization also helps us to bring broadband utility operations in-house and under direct supervision of the Town, helping ensure that broadband business operations, installations, and future needs of this utility are met. The development of the broadband utility is being funded by a municipal bond. This reorganization is a natural and effective for Trailblazer Broadband to transition from a startup to our scale-up/growth phase. The reorganization will allow direct supervision of staff and reduce consulting and contractor charges. Page 96 Utilities Phase 2 Reorganization – August 10, 2021 Page 8 of 9 Addendum A: Utilities Org Chart Page 97 Utilities Phase 2 Reorganization – August 10, 2021 Page 9 of 9 Page 98 8/25/2021 1 Vacation Home Philosophy Town Board of Trustees August 24, 2021 Why Are We Here? Staff committed to bring back transferability and cap discussion after adoption of new vacation home code amendments in May 2021. To address Mayor Pro Tem Martchink’s comments to consider vacation home revenue sources. Page 99 8/25/2021 2 Outline 1.Transferability 2.Residential Cap 3.Potential Revenue 4.Board Discussion and Direction Transferability Currently allow license to be transferred to new property owner. Must be completed within 30 days of purchase. Transfers impact waitlist of residential. Limiting transfers would allow properties on the waitlist to secure license. Continue to allow? If no, direct staff to bring forward options. Restrict transferability for newer vacation homes established after 2016 regulations? Restrict for new vacation homes moving forward? Etc. Transfers by Year Applications Processed 2018 38 2019 42 2020 34 2021 12 Page 100 8/25/2021 3 Transferability - Add’l Data Transfers by Year Applications Process Residential Commercial 2018 38 31 7 2019 42 32 10 2020 34 23 11 2021 12 10 2 0 5 10 15 20 25 30 35 40 45 2018 2019 2020 2021 Transfers per Year Applications Process Residential Commercial Residential Vacation Home Cap Current Cap 322Year Total Registered Town Limits Residential Commercial 2010 113 94 19 2011 117 100 17 2012 122 104 18 2013 143 122 21 2014 162 139 23 2015 191 163 29 2016 267 203 64 2017 377 282 95 2018 423 319 104 2019 424 308 116 2020 463 322 141 2021 480 322 158 0 50 100 150 200 250 300 350 400 450 500 0 50 100 150 200 250 300 350 400 450 500 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Vacation Homes - 2010-2021 Total Registered Town Limits Residential Commercial Page 101 8/25/2021 4 Residential Vacation Home Cap Cont’d Board Discussion Continue current cap Reduce through attrition Impact on housing – workforce, cost, etc. Waitlist by Year Applications Processed 2018 8 2019 16 2020 15 2021 12 Waitlist 56 Grown by 37 in 2021 Next Application on Waitlist Received 11/2019 Waitlist 56 Grown by 37 in 2021 Next Application on Waitlist Received 11/2019 Residential Unit Data Number of Bedrooms Residential Units Studio 5 (1%) 1 39 (12%) 2 58 (18%) 3 147 (46%) 4 51 (16%) 5 or more 22 ( 7%) Owner Address Outside of Estes Owner Address Estes Park Total # Vacation Homes All Zoning Districts 369 112 481 Commercial Zoning Districts 129 30 159 Residential Zoning Districts 240 82 322 -20 – 25% owned by individuals within an hour’s drive -59% owned by individuals living in Colorado Page 102 8/25/2021 5 Vacation Ownership Analysis Total # of Property Owners # VHs All Zoning Districts # VHs Residentially # VHs Commercially Ownership of 2 VHs 44 88 59 29 Ownership of 3 VHs 12 36 23 13 Ownership of 4 VHs 5 20 8 12 Ownership of 5 VHs 1 5 5 0 Ownership of 14 VHs 1 14 0 14 0 10 20 30 40 50 60 70 80 90 100 44 Property Owners of 2 VHs 12 Property Owners of 3 VHs 5 Property Owners of 4 VHs 1 Property Owner of 5 VHs 1 Property Owner of 14 VHs # VHs All Zoning Disstricts # VHs Residentially # VHs Commercially Potential Revenue Fee or Tax ($X/night) Vacation Home Workforce Housing Linkage Fee Fee Study Vacation Home Occupational Tax Breadth Options: Residentially Zoned Vacation Homes All Vacation Homes Other/Tiers Page 103 8/25/2021 6 Aspen - 45% of .45% Sales Tax Avon – 4% Accommodation Tax Breckenridge – 3.4% Accommodation Tax Crested Butte – 5% Vacation Rental Excise Tax Dillion - .6% Sales Tax Mt. Crested Butte – 2.9% Excise Tax dedicated to affordable/workforce housing Pagosa Springs – 2022 Ballot for excise tax on STRs and/or a dedicated sales tax Telluride – 2.5% Town Affordable Housing Excise Tax Vail - November 2021 Ballot for .05 cent sales tax dedicated to Housing Fund Summit County - .725% sales dedicated to workforce housing Board Discussion & Questions Vacation Home Philosophy Page 104 8/25/2021 7 August 10th Direction Staff to bring a budget amendment to the September 14th Board meeting to fund an initial fee study. General Funds to be used Page 105 Public Comment Received by 08-20-2021 Fwd: Vacation Rentals To: Town Clerk <TownClerk@estes.org> Tue, Aug 17, 2021 at 10:34 AM Dear Mayor, My brother, two cousins and I are Estes Park home owners (124 Stanley Circle) and hold a vacation rental registration. I listened to the town meeting on August 10th and want to convey my concern and objection to increasing the tax burden or adding fees on rentals. I understand there is a significant need to address workforce housing, but I feel like vacation rentals have been an ongoing target for several years. My grandparents built our cabin in 1947 and the legacy has been passed down to my generation. We don’t hold a permit without using it or look at it as a means to inflate our property value. Instead, we rent in order to afford to keep the house we love and maintain it in the best manner possible. As you know, the window for rental is primarily from May to October and then we wait and budget to get to the next season. In 2019, we spent $10,913.40 to meet and pass the safety inspection requirements. We use a very qualified management company and our neighbors have not complained about our rental guests. I feel like we contribute to the economy in Estes Park as a provider of accommodations, a customer of many local repair trades and a client of a local management group. Thank you for representing our community. I really appreciated your balanced viewpoint. We love Estes Park and view it as a family treasure. Mary Ross STR's Jeffrey Doran <jdoran@realtec.com> Thu, Aug 19, 2021 at 2:38 PM Hello City Council – We have had two STR’s in Estes Park for years and feel we have contributed greatly to the City in many ways thru higher fees and the like. The potential new fees etc. introduced is not equitable. Place this fee on every home in Estes…they get the benefit as we all would. Partner with a private company to get this done….there are many other options. Please let me know if I can help in any way. Thank you, Jeffrey Doran Fwd: STV rentals/pillow taxes To: Town Clerk <TownClerk@estes.org> Wed, Aug 18, 2021 at 6:51 PM I just got an email sent to me by mistake from a STR owner talking about how it was unfair that they have been targeted to pay a tax that would go towards affordable housing. I have lived in Estes for almost 30 years and recently had a scare that I might lose my rental. I know a lot of people in Estes and wasn’t able to find anything…and I have great references with a steady income. I cannot live in a hotel nor can so many of the others that I know are looking for housing. While I realize that not all STRs would work for a single person renting certainly quite a few of them would have or did in the past. Estes does’t feel like a community because people don’t live here anymore. Please tax the STRs so that it can actually change our affordable housing. We need teachers, servers, police officers, post office employees, caregivers, grocery store clerks, town employees, firefighters, shop workers, dental assistants, gas station attendants, librarians, ordinary people working ordinary jobs…not just tourists that come for a short term stay. Even if you just look at it as they (STR owners) bought up all of the housing that might have been affordable to a normal person here in Estes. SHAME ON THEM FOR THEIR GREED. Sincerely, Someone that Once Loved Estes Report & Discussion Item 1: Vacation Home Philosophy Page 106 Public Comment Received by 08-20-2021 MUST READ & ACTION NEEDED - Estes Park Considering to Propose a Tax or Fee on Short Term Rentals to Fund Affordable Housing Initiatives Stracer STRs <fastpacedace1970@gmail.com> Thu, Aug 19, 2021 at 11:21 AM TO STR RENTAL OWNERS & PROPERTY MANAGEMENT COMPANIES: To all Short-Term Rental property owners (STRs as they call us). I wanted to share the below email as I and am sure most of you will oppose the Town of Estes or any other entity from singling us out to pay for an issue the Town of Estes has had for as long as I can remember. At the August 10, 2021 Study Session, the Trustees were strongly considering hiring a consultant to perform a study on the Affordable Housing situation in Estes Park and looking to add a nightly fee and/or tax on STR bookings to go into a fund reserved for Affordable Housing initiatives. STRs bring a huge amount of tourists into our Town, spending lots of money and generating a lot of sales tax/revenue in our community. It is time the STRs stand up for what is right. This proposed Fee and/or Tax would be solely on STRs and not any other business (including other types of lodging businesses)! We all know how unfair such action would be to single out STRs. There is no such thing as affordable housing in Estes Park. According to Zillow.com the average price of home values in Estes is over $602,000.00. This is just another tax the town wants to impose. The town needs to manage their funds and their expenses vs. passing it on to STRs to fix a problem that has existed since way before the 1990’s. We rent our homes short term, so we can still enjoy beautiful Estes Park and our home. Most of us who own an STR would not consider using our properties for affordable housing as we want to share our homes on a short-term basis so our friends and families can still use our homes and not commit to a long-term affordable housing rental. I sat through several of the meetings the town had when they kicked off the charge to regulate us, mandate permits and mandatory inspections on our STRs in Estes. The Town told the home owners how many people could stay at their STR by limiting the number of people per bedroom in OUR house, charge us for inspections, charge us a yearly fee for permits and told us they would NOT look to increase the number of homes for STR permits and now the town is telling us people are converting the affordable housing into STRs. If the town said there would be a CAP on the amount of STRs, how are these affordable houses being converted to STRs ? There was to be a limit of STR permits allowed ! Also, if we own a STR rental permit and we want to sell it someday with our home, they should be transferable. We bought the permit, it is ours !!! If the new owner doesn’t want to rent the home they just purchased then they should have the right to pass and the permit can go back to the town to resell to someone else and continue to limit the number of STR permits like the town told us at the original meetings ! I encourage everyone owning a STR or Property Management Company to call into the meeting that is coming up in the next week and also email the town administrators and all town trustees to let them know how you feel. Their emails are listed below. Now is the time to share your opinion of how you feel and how this will impact you and our customers. Doing nothing or thinking someone else can handle this for us is what lead to us having to pay for higher utilities, STR yearly permits, a one-way road through the heart of Historic Downtown Estes, the demolition of a landmark the Donut Haus and now the parking meters downtown that are an eyesore when the city/town has already spent millions of dollars on a parking ramp ! Remember when the Town of Estes Park shut down due to Covid ? They not only told the STRs that were not living in Estes to STAY away and not come to town, when the town reopened from Covid they let the motels open first and discriminated against STRs and wouldn’t let us rent for quite some time after the motels were opened 1st. Leave the STRs that bring lots of revenue into Estes ALONE and STOP discriminating against us ! This is a CALL TO ACTION to submit your comments to the Town Trustees (See Links Below to the Recorded Study Session and link to submit your comments) to review prior to their August 24th meeting to have your voices heard. STR as a solution Randi Jones <randi.jones10@gmail.com> Thu, Aug 19, 2021 at 11:39 AM You all have a lot of tough decisions to make. Please don't waste money to try and find a nexus between affordable housing and STR's. I can use statistics to support almost anything. More fees on an STR are not going to solve a lack of affordable housing. Page 107 Public Comment Received by 08-20-2021 I have a licensed STR and I am able to use the money I make bringing tourists to town to pay my mortgage and it allows me to provide low cost housing to traveling nurses in the off season. More fees would take away from that. A more direct solution would be to use the General Fund to BUILD more affordable housing and helping builders to reduce or eliminate some of the indirect government's red tape which adds thousands to the cost of an affordable house. Randi Jones Study Meeting on Short Term Rental Properties Bob Korte <bob.korte@mail.com> Thu, Aug 19, 2021 at 3:34 PM To: Estes Park Trustees From: Robert & Carol Korte – Owners of Kings Retreat 1950 Sharon Ct. North Subject: Affordable Housing Study As owners of one of Estes Park’s permitted short-term rental (STR) homes, I am once again disappointed in the Estes Park government again looking to the STR’s to fund a study that is not an issue caused by the STR’s. The problem of Affordable Housing in Estes Park has been a long-term problem that has been there for many years. Average prices in houses in Estes Park, which I am assuming has contributed to the housing issue, have been increasing for a number of years and has been a benefit to the City of Estes Park with increases in Real Estate taxes. The STR’s have not caused the issue of increasing real estate prices as the city has capped the number of STR’s a few years ago that can operate within the city. Real Estate prices have gone up as Estes Park is a very desirable place for retirees (I have been told that Estes Park is the retirement capital of Colorado) to come and live and enjoy the wonderful views. STR’s provide a lot of benefits, (money spent on food, entertainment, souvenirs, parking, other services and the taxes paid on such items) for the city already. We know from the comments that we receive from our guest that they come to Estes Park because they have the opportunity for their whole family to come to Estes and enjoy their vacation in an environment where they can spend their days together in a home instead of in three or four separate motel rooms. I know from my own past vacation experiences that when we wanted the whole family to go to a destination, we chose one where we could rent a whole house big enough for everyone. We did not pick a location where we would have all had to have stayed in separate motel rooms. Thus, the city with the STR location benefitted as opposed to one that did not have the opportunity. I do not think that the City of Estes Park should again place another tax on the STR’s to pay for a consultant for a long-term problem not specifically caused by them. If the City feels they need someone from outside to look at this issue it should be the City’s responsibility to pay for it as it’s an economic development city issue. Maybe the city should do what our home town of Keokuk Iowa is doing to combat this very same issue. They formed an organization and have gotten grants and contributions and started a program to build reasonably priced homes in Keokuk. Without STR’s in Estes Park there would be less families visiting, spending money and generating taxes for the city coffers. Sincerely, Robert and Carol Korte STR tax proposal/affordable housing initiative Kent Weems <kweems7777@gmail.com> Thu, Aug 19, 2021 at 4:02 PM Good Afternoon, My family and I have been visiting Estes Park for thirty five years and in all that time I've never seen affordable housing as compared to any community not based on tourism. We too own a home with a short term license. It's the only way this working class family can afford to visit ourselves. Until recent times, short term rentals weren't even part of the landscape. Most of you have been around long enough to know this but seem to be overlooking that key piece of evidence. I believe, without any consideration of factual data to back it up, that short Page 108 Public Comment Received by 08-20-2021 term rentals are being singled out and arbitrarily penalized. If my rudimentary and somewhat hasty research is accurate, 17% of the households in the Estes community are licensed short term rental properties. Since many of these properties are quite large, they could never be viable options for wage and hour employees. It defies common sense and demonstrates a capricious state of mind to place blame and financial burden in a disparate fashion upon short term property owners. ROI's for long term rental property in Estes will not cash flow a purchase (this is nothing new). It is an undeniable, glaring truth that has existed for decades. You cannot solve the employee housing challenge on the back of one portion of property owners. I hope you know there are programs out there at the federal level which will subsidize housing units in order that they can be viable. Those commercial contractors familiar with such housing options should be actively sought out and recruited to help solve the issue. Full cooperation from city hall is imperative for these types of endeavors to be successful. I encourage you to pursue them. In addition, do not forget, short term rentals are substantial in their contribution to the tax coffers now, generating millions in recent years to help build recreation facilities, repair streets, et al.? Housing issues are no different in Estes for employee groups than they are in any tourism destination and shouldn't be mitigated by singling out one sector of the community you can marginalize to achieve political ends. Keep in mind many businesses will suffer with fewer options for the millions of tourists who visit to linger longer. This also drives the financial well being of Estes. Please consider how positive these additional visitors are on the tax revenue because they stay in town rather than traverse back to front range accommodations. I don't have the statistics but it seems quite obvious the entire business community, as well as the town of Estes, benefit greatly. Please think about this, as well. Thanks for listening. Kent Weems. STR jclark c <jclark1503@gmail.com> Thu, Aug 19, 2021 at 1:23 PM Good afternoon all, I am certain that your emails have been exploding with comments concerning STR's and the study to draw the conclusion that STR's remove affordable housing from the marketplace. My wife and I have been coming to Estes Park for Decades with our families. In that time there has ALWAYS been a shortage of employee housing. You should never believe that this is an exclusive situation to Estes Park. This is a nationwide situation with EVERY vacation/tourism location. Trust me Estes Park didn't invent this. To blame it on the STR's is also absurd. If you look at the average cost of a Vacation home in Estes they will be well above the affordability level of Service workers. Why not figure out how to increase their level of income? Why does the Town and Staff find it necessary to burden STR's with additional Taxes/Fees etc. while other businesses utilize the same exact service personnel classification at a higher rate? Shouldn't they also be burdened by the cost if they are utilizing the classification of workers as well? As I understand there are also grants from the state available to fund exploration for Housing shortages.. Why hasn't Staff made an application for these grants rather than hire their own 3rd party to do the study? Could it be that they couldn't manipulate the data to get the results they are looking for? STR's have jumped through many hoops. We pay a higher rate for Utilities. We endured the Dark Skies inspection (Which I might add that we were in compliance, and my neighbors do not. Further there is a street light which shines directly into the outside seating area of my property and we have asked multiple times to have the Town put some type of shielding on the light and NOTHING has been done about that.) We had the Life Safety Inspection which was fine. I don't mind having that completed, I would never want to have anyone injured or perish in my home. We were told we had a few things to accomplish, however I could NOT do the work myself even though I am a Licensed contractor. NOPE, YOU DON'T LIVE IN THE HOUSE FULL TIME so that wasn't allowed. There's another $14,000.00 out of pocket. It would appear that someone with a lot more leverage than the STR's (hotel motel/ restaurant industry) has the ear of the Town leaders. Estes Park Citizen and Town philosophy "You visitors just come and leave your money at the gate, but DON'T STAY. All you Vacationers are using up space that the locals have but don't want to pay any more for." Remember STR's pay taxes too, as well as generate REVENUE for the Town, the Businesses and the State! How much revenue does the Full time residents Generate? I would bet it is FRACTIONAL to the amount that STR's Generate. John Clark Page 109 Public Comment Received by 08-20-2021 Short Term Rentals - Affordable Housing Alpha Omega <rentestespark@gmail.com> Thu, Aug 19, 2021 at 12:28 PM To Whom It May Concern: I would like to voice my strongest possible objections to an added tax (a government fee is a tax) on short term vacation rentals in order to fund "affordable housing". The need for affordable housing affects every individual and business in this region and to single out one small segment of the business sector to help meet this need is absurd. It should be the position of the town government to incentivize the construction of "affordable housing" and not to tax people to house others. Make things easier, not more burdensome! Get out of the tax and spend mindset and consider alternatives that promote free enterprise and the growth of the tax base. Sincerely, Steve Ferrante Response to Aug. 10th Meeting Nicole Schneider <Niki@planllc.org> Fri, Aug 20, 2021 at 8:44 AM To All Concerned with affordable housing in Estes Park, I want to commend Richard James for doing all his research and providing this valuable information to the city concerning affordable housing. He has done a lot of work for the city leaders. I think his ideas are better than the proposed study on fees and/ or taxes on STR's. Fees and taxes are just a band aid that targets a small group. ( STR's ) A study of affordable housing and a solution using grant money would save the city money and be a more comprehensive solution. If the city does a study on fees or tax for STR's they would STILL need to do research or a study of how to use the money to fix the problem. Why not just fast forward to Richard James's suggestion. The grants are going to be a long-term solution to a long-term problem. Short Term rentals have mainly been around since the late 1990's and have blossomed in the last 10 to 15 years. The problem of affordable housing has been around for much longer. I realize it has gotten much worse lately. The town should have been dealing with this long ago. Water under the bridge! Now, don't single out and penalize one small group for a problem the whole town has. You would be discriminating. Again, this is a WHOLE community problem that is best dealt with by doing a study and finding a solution to the affordable housing problem, not a specific fee or tax study on STR's. Let's not forget that this community survives because of tourists and that ALL businesses and services benefit from the tourists and that ALL these businesses and services bring in employees that require housing. This burden of affordable housing should NOT fall on the shoulders of one small group. The study and solution to the problem should encompass the whole community. Thank You for your time and consideration, Niki Schneider Utilize federal and state grants targeted specifically for affordable housing rather than charging or taxing a very small percentage of the community for a problem that is community wide. John Leverington <john.leverington@gmail.com> Fri, Aug 20, 2021 at 1:13 PM Affordable Housing: My wife and I watched the Estes Park Trustee meeting regarding Short Term Rental philosophy and discussion regarding assessing fees or taxes on STRs. Like many others it was a life-long dream to live in Estes that we did not think was possible due to the cost of living. Five years ago we purchased a condo as our residence and because of the ability to use it as a short-term rental when we are not in town we have been able to afford to happily live here. As lifelong Social Workers we have a great interest in serving others and a special interest in helping those who need affordable housing. We agree this that needs to be made a priority for the town of Estes Park Page 110 Public Comment Received by 08-20-2021 and support consideration of grants and public funding available to start this process. We will be retiring at the end of the year and look forward to becoming more active in volunteer roles in the community to help in meeting community needs such as this. We do not believe that singling out Short Term Rental property owners is the way to solve this problem and that to do so is not equitable or fair. All commercial STRs, hotels, restaurants, bars, and businesses who employ people in the service industry benefit from their work and need to contribute a fair share of the costs of providing them affordable housing, if such a fee or tax is judged the only way to accomplish this goal. In fact, STRs only employ 1 or 2 people in the service industry, while these other businesses employ many more of them. Further, STRs could not afford to rent our homes for affordable housing as we live in them much of the year ourselves. For the past three years, we have only rented our home 60-75 nights. There is only rental interest from June through August, with some additional weekends in the fall, meaning the maximum number of rentable nights for the year is 90-100 total. We already pay sales tax, property management fee, cleaning and laundry fees, annual rental license fees. If an additional tax or fee were to be added it would price STRs out of competition with hotels and other accommodations in the Estes Park short term rental market. We earn only about $10,000 past costs for the STR, which helps us to live in Estes Park as retirees. Since it is the entire Estes Community, all residents, who benefit from the work and service of the service industry who need affordable housing, a solution that does not put the burden on one very small part of the community needs to be found. Adding another tax or fee to the businesses and residents of Estes Park is not the way to go. The availability of grants at this key time is a wonderful and timely opportunity to pursue to solve this problem that Estes Park has faced long term. We understand that House Bill 21-1271 was enacted into law on June 27, 2021. It will provide $13 million to communities that adopt rules that promote affordable housing projects. The legislation would create three grant programs for housing development, planning and a “affordable housing guided toolkit” for communities, all managed by the Division of Local Government and the Department of Local Affairs. We understand that the application for the first of these grants is a competitive process, and that the first application for the study grant is due sometime in September. For more information see https://coloradosun.com/2021/06/09/colorado-mountains-developers- affordable-housing-funding/ STR License Cap: The presentation regarding the license cap seemed more concerned for people who would like a license than those who had gone through the whole application, getting the home to meet standards, and complying year after year with the license. The city determined the cap and it can choose to increase it whenever it deems it appropriate. In the meantime, the focus should be on good relations with those it does license. It seems that the city could determine approximately how many licenses generally turn over in a given year or two and allow only that many homes on a waiting list. Transferability: Whenever a change in a rule is imposed, it seems fairest to make it effective going forward, not backward to some past date, such as 2016. Even though the language in the rental license changed then, the city did not change the rule on transferability then. In the interest of good community relations, it would seem most fair to change the rule only for any new STRs approved going forward if and when the city council changes the transferability. Sale Price of STR homes: We would also like to speak to the question of the general understanding that relators told someone that STR homes sold for $50,000 more than comparable homes. There was no concrete data to support this, and if there were it would understandably show a range depending on the size and price of the home. We would like to provide a personal example. We bought our condo in excellent condition because we did not have the time or finances to fix it up to live in and make it meet STR standards. Little did we know how strict those standards would be. The inspector came up with a list of 17 small but altogether expensive changes we had to make to pass inspection. We were shocked and struggled. It cost us $12,000, which put us in the hole for more than our whole first season of rentals, not to mention living there ourselves. These included the following, to show you how stringent they are: exterior, night sky friendly lighting over outside stairs; inside stairs had handrail but it had to be grooved requiring it to be removed, grooved, and restained to match other woodwork; address letters by front door had to be illuminated; all electrical work had to be double checked/tested by a new electrician to ensure it was correct; the size of the ground level deck was 6x8, not 5 x 5 as per records (why was this important anyway?); the fireplace had to have another inspector come out to ensure it was direct vent (and it was but we had to pay for the service); the railings along the inside stairs were 6 inches apart but needed to be 3 inches apart, so additional railings had to be added and stained to match; the mechanical room needed fire blocking, which made sense; the ceiling vent from the garage was not constructed according to current codes and had to be changed; they didn’t have a record of a building permit from the much earlier division of one large bedroom into two smaller ones, so that had to be applied for/approved along with an electrical permit for the wiring that had been done before, even though they had been permitted at the time and were up to standard currently; smoke alarms and carbon monoxide alarms had to be placed in each bedroom and hallway (we were happy to add the additional ones needed). Why should we not be able to sell the home if/when we sell it as a STR since we have done all the work and paid all the cost to make it meet Page 111 Public Comment Received by 08-20-2021 standards? Commercial properties are not penalized for making their properties commercial when they go to sell them. We would like the trustees to also understand that the people we know who own STR homes do it to help ourselves be able to afford living in Estes Park, not as a commercial venture to make a lot of money. We trust this personal example gives provides you helpful additional input on factors to consider as you debate these matters. and request ta We appreciate the trustees’ careful deliberations on so many topics necessary to keep Estes Park the wonderful small town we are so thankful to live in and be a part of. John and Becky Leverington Short Term Rental and Affordable Housing situation Aaron Acela <aaronacela@yahoo.com> Fri, Aug 20, 2021 at 3:45 PM To whom it may concern, Good afternoon, I wanted to voice my opinion on the Town of Estes spending money for a survey/consultant or even considering a fee or extra tax on STRs for renting our home out. I strongly oppose the Town of Estes for singling out STRs as this has nothing to do with the Affordable Housing situation in Estes Park. STRs bring a huge amount of tourists into our Town, spending lots of money and generating a lot of sales tax/revenue in our community. I know the town looks down on STRs, however these tourists would stay in other communities if we didn’t rent our home out when we are not using them. We bring revenue into Estes and are not the bad guy. Please find another way to generate funds for affordable house in Estes. I thought the town had a cap on the number of SBRs in Estes ? How are more permits being issued to allow other rentals to convert/become SBRs and reducing the number of rentals for the working members around town ? Thank you for listening, Sincerely, Aaron Acela Page 112 8/20/2021 Town Trustees, I am writing this letter to add my thoughts on the August 10th Study Session. I will start by saying that I am not a Colorado native or a full-time resident of Estes Park. Nevertheless, I have deep ties to the town, I have business interests here and I have a great appreciation for the town and the awesome natural beauty that draws millions to the area every year. I took serious interest in the real estate market in the Estes Valley in 2016 and have been immersed in the same ever since. As all of you are aware, housing wasn’t “affordable” in the sense that the board is currently viewing the issue from in 2016 (or well before), it isn’t now and likely never will be without subsidization. That being the case, it seems that STR owners are being singled out and looked to as a financial solution to a problem that they didn’t create. This issue has nothing to do with short term rentals and everything to do with the charm and natural beauty that draw the previously mentioned crowds to the area every year. This same charm and beauty are likely what kept or drew everyone reading this letter to Estes Park as well. There is no denying that homes that have a transferrable STR license bring a premium in comparison to those that don’t but with the current cap, STRs make up a fraction of all homes in the Estes Valley and are hardly a driving factor in the overall market. Evidence to substantiate this is readily available. My family bought our first vacation rental in Estes Park in 2017 and shortly thereafter my impression was that the Town Trustees and many full time residents take a negative view of STRs in general. Let me be clear, my intent here is not to be critical of the Town Trustees or anyone for that matter but to add perspective from the viewpoint of a vacation home owner. All of you have a great deal of responsibility and I have the utmost respect for your willingness to serve. My perception is based on what seems like an ever-changing rulebook, increasing and/or added fees and inconsistencies in how STRs are regulated in comparison to hotels and motels which provide a similar service. I would point to the additional restrictions placed on STR properties versus hotels/motels during the pandemic mandates last year as an example of the latter. Regarding the transfer of STR permits, for the last several years it has been the practice of the Town of Estes Park to allow the transfer of permits with the sale of a permitted house. In fact, as you are all aware that procedure is outlined on the town website which further establishes the precedent that has been set. If the Town Trustees elect to discontinue this practice, I feel it will be a great disservice to both the owners and potential buyers of those properties as well as to the town of Estes Park. The downside of changing the established practice in respect to the property owners is self-explanatory but not allowing these transfers will result in lost revenue for the town. Being very familiar with the vacation rental market I can tell you that taking an established, earning vacation property off the market just because the ownership changes and then replacing it with a property with no rental history will in fact, without a doubt, result in a net loss in revenue for the town. Financially, this practice is akin to not allowing the sale of any established business in town but instead requiring that business to close if ownership of the real estate changes so a totally new and unknown business can open at a different location. The difference in revenue will be drastically different and ultimately will affect the revenue of the Town of Estes Park. Page 113 If the intent of this issue is to identify a source of funding to subsidize workforce housing (which I fully support) then I would offer an alternative to discontinuing the transfer of STR licenses that would help in achieving that goal. I have no specific information, perhaps you do, but I would anticipate that a considerable number of STR licenses that have been issued are being held by homeowners who don’t actively rent their homes and have no intent of doing so. They simply hold the permit and pay the fees as they know that having the permit increases the value of their home significantly. Alternatively, some hold the permits simply so they can’t be issued to someone else in a futile attempt reduce the number of tourist that come to their town. Aside from the annual fees, the town derives no revenue from these licenses meanwhile, the homeowners who hold them are depriving the town of much needed revenue. With the cap in place, this loss of revenue will only increase as homeowners on the waitlist with similar intentions get their turn at a license they will never use. If the town wants to study revenue sourcing I would suggest this issue as a good place to start. Rather than eliminating the transfer of licenses I would propose enacting changes that would require homeowners who hold a STR license to actively utilize their license or forfeit it. This isn’t the platform to outline this procedure in detail but placing requirements on a minimum number of nights per year the property must be rented for example could generate significant income for the town that is currently being lost. Enacting such a policy would without a doubt generate more revenue for Estes Park without increasing the cap on STR properties which I believe is also a concern amongst the some of the Town Trustees and residents. As for increasing and/or adding fees I am in general, opposed. Ultimately, as a result of this ongoing discussion I would presume that an increase in fees to STR owners will likely happen anyway. Going back to my earlier point of what I feel is a negative view of STR properties in general I would ask, why are these properties being singled out? Why is there not a movement to increase fees, taxes, etc. on all businesses within Estes Park? After all, the housing crisis touches nearly every business in town to some degree yet the owners of STR properties are being singled out even though such properties make up a fraction of all housing in the Estes Valley. No one blames the owners of businesses on Elkhorn for the high price of commercial real estate downtown and there is no talk to taxing those businesses to pay for the development of “affordable” commercial properties, how is this problem any different than the issue at hand? Where is the equality in imposing taxes and fees on one subset of business within the town to pay for a problem that affects nearly every business in town whether they be restaurants, bars or any of the various other types of business in Estes Park? To be clear, I don’t want to see an increase in fees and/or taxation for any business in Estes Park and my intent here is not to suggest any such idea. I would like to thank all of you for your dedication to the betterment of Estes Park and for hearing my concerns. Sincerely, Nate Weems Page 114 Start date Agenda_Item_Title Name Stance_on_itemStance_on_item_For Stance_on_item_Against Stance_on_item_Neutral Comments_for_the_Board_of_Trustees_File_Upload 8/20/2021 2:00 PM Vacation Home Philosophy. mark newman Against 0 1 0 please consider my concerns outlined on the attached regarding the proposals discussed at your recent meeting. Short Term Vacation Rental Opinion - EP Town Board - Mark Newman.pdf 8/19/2021 8:21 PM Vacation Home Philosophy. Dawn Clark Against 0 1 0 I plead to you to be just, moral, and ethical as you create any further philosophy toward vacation rental homes. This has not been the case thus far. Vacation homes hves been the scape goat for all evils and it is time for this to stiop. I don't know who is behind this negative movement or how much power they have, but the non-democratic way of accusing vacation rentals for every problem Estes has without a shred of documented proof is getting old.A plea for Justice.pdf 8/19/2021 4:19 PM Vacation Home Philosophy. Durango Kellie Steele Against 0 1 0 Hello Mayor Koenig and Trustees, Attached is a file with my comments about the August 10 - Study Session: Vacation Rental Philosophy and Work Force Housing. Thank you all for your time and commitment to Estes Park. Durango Steele Vacation Rental Philosophy - EP Town Board.pdf 8/19/2021 11:54 AM Vacation Home Philosophy. Kris Troxtell Against 0 1 0 We will NOT convert our 2 STR homes to affordable housing. They are too big and would not be affordable unless we had 8-12 people living in them. Our neighbors would HATE that. Think of all the cars, dogs, people full time, etc. As for the STR fee, it isn't fair to only charge a fee to the vacation homes. You would also need to charge retail stores, restaurants, horseback riding facilities, mini golf, fly fishing, motels, etc. ALL of these entities use employees who need housing. 8/19/2021 11:44 AM Vacation Home Philosophy. Kristine Hodges Against 0 1 0 Please stop discriminating against short term rental homes. We follow the existing rules and pay the fees and are good neighbors. We bring alternative housing options to the town for short term visitors as well as medium term / seasonal residents. We have suffered through unfair treatment during the past year where the town had different requirements for STR vs hotel accommodations. We are at a disadvantage because most of us own a single property and don’t have a loud voice or a powerful owner to represent our interests like the hotels and resorts. We do not need any additional regulations or additional fees. Those do not provide any benefits and cause extra unnecessary red tape. STR owners are a small group due to the limited number of permits issued by the city. We cannot bear the cost or solve the problem of affordable housing in the community. 8/18/2021 3:13 PM Vacation Home Philosophy.John Clark Against 0 1 0 Please see comments in my PDF file attached Trustees.pdf Page 115 8/18/2021 2:41 PM Vacation Home Philosophy. Seth Hanson Against 0 1 0 My name is Seth Hanson. I have been a realtor/developer in Estes since 2004. I am against the proposed tax/fee levied on STRs for the purpose of affordable housing. Please know that I am a strong advocate of aff. housing. As a developer, I have built more market rate homes under $350k in the past 17 years than any other developer. I also own rentals that house working members of our community. The answer to our affordable housing crisis has to be approached from a variety of ways. I would participate in a conversation about the fee/tax on STRs if the conversation also included other ways to tackle our housing crisis. For years, I have been an advocate for changing our zoning laws. The housing study that was done many years ago revealed that our density standards are well below the norm. We need to increase density in RM, A, A1, R2, and some of our E zonings. How about loosening accessory dwelling laws? 8/18/2021 2:40 PM Vacation Home Philosophy. Susan Mills For 1 0 0 This is clearly a wealth tax and I am 100% for it. I ran an STR property on and off for over forty years. long before licenses were required. I have also used the property for long-term rentals. I strongly prefer short-term rental because I can get 4x the money with far less damage to the house. I absolutely think STRs should pay the same lodging tax that a hotel must, along with all the other fees they have to pay. Short-term rentals can certainly afford it. If you could include some incentives for long-term rental use, that would be great! Page 116 8/17/2021 11:06 AM Vacation Home Philosophy. Robert Niemeyer For 1 0 0 1. Licensed vacation homes once sold should not be allowed to transfer to the new owner. The reason is the homes are sold as a vacation home having a permit which adds considerable value to the sold home . That causes a artificial valuation which affects other homeowners valuations . The argument that they have invested in a licensed home has no validity as the town took away all owners property rights to rent out short term when this ordinance was enacted . Once you give up ownership the license should go back into the pool. 2. The point made that 10 percent of licensed vacation homes are not used as such also shows a Perceived value. This is not fair to those who want to rent out their homes but are stuck on a waiting list. A daily tax on a rental would show the town who uses their permit snd those who do not. Their should be a minimum usage assigned so people don’t take advantage. Also if the home is not rented out during a period of time. The permit should be forfeited . 8/17/2021 10:37 AM Vacation Home Philosophy. Christopher Eric Wood Against 0 1 0 I urge the townboard to consider perhaps the most pressing question: How are we (or why are we) allowing commercial businesses to operate in areas zoned residential? Look at this oversight as helping to destroy our sense of community where no longer "neighbors are neighbors" but transient guests. Our kids are moving out of the community, the very essense of our future, largely relative to their parents no longer being able to afford to live here. We are chosing for few dollars over the health and well being of the future of our town. Our town with thus, only in essence, become a business. Let's help our community thrive by putting a moratorium on all vacation rentals, and taking back our community helping our working class afford to live AND work here. 8/16/2021 10:29 PM Vacation Home Philosophy. Kuyler Coopwood For 1 0 0 Vacation rentals help contribute to the overall tourism dollars in Estes Park. Some people rely on Airbnb or VRBO to book their trip as they trust the brand and community reviews. Page 117 8/16/2021 4:32 PM Vacation Home Philosophy. Richard James Against 0 1 0 UPDATE TO EARLIER COMMENT SUBMITTED: The link to the DOLA website: https://cdola.colorado.gov/1271 The portal to submit your grant application to obtain grant money to retain a Consultant to Perform a Comprehensive Study of Affordable Housing Strategies under the Planning Grant Program is available on this website. The deadline for the first review of applications is September 20, 2021 Applications will then be reviewed and awarded on a rolling basis monthly until funds are depleted. Grantees are encouraged to complete their qualifying planning work as quickly as possible so they may compete for the Incentives Grant Program, which is expected to open for a main funding round in fall 2022. 8/16/2021 4:09 PM Vacation Home Philosophy. Tari King For 1 0 0 Thank you for the discussion around the Vacation Home Philosophy of Estes Park. I have held my VHL since the inception of the program. I cannot say enough about how helpful the folks at the Town of Estes Park have been. During the application process, the Life Safety Inspection program and renewal have been effective and efficient to navigate. My home in EP has been in our family since the 1930s. My Uncle Harry Tregent was the Mayor of Estes during the Big Thompson flood. Estes has been a part of my life since I was a little girl and I care very much about the growth of Estes and keeping Estes unique. I support the VHR program. I enjoy working with my guests and sharing the cottage. I have also been able to make improvements to the cottage with the revenue generated from the VHR program. All of these improvements were made by local carpenters generating more revenue for the community. Airbnb fees have greatly increased over the last year-please minimize fees and taxes. 8/16/2021 3:42 PM Vacation Home Philosophy. Richard James Against 0 1 0 See attached e-mail sent to Trustees today entitled "Affordable Housing Grants Will Soon Be Available - Focus efforts on Obtaining Grant Money Under HB21-1271 (Not Waste Money on STR Fee Study)" Affordable Housing Grants Will Soon Be Available - Focus efforts on Obtaining Grant Money Under HB21-1271 (Not Waste Money on STR Fee Study).pdf 4 10 0 Page 118 Work Force Housing James Gunlicks <jimgunlicks@gmail.com> Sun, Aug 22, 2021 at 10:48 AM Good morning. First of all, we want you to know that we are in favor of supporting investment in Estes Park affordable work force housing, and we voluntarily contribute to the EDC in support of this effort. We do, however, strongly object to requiring only short term rentals to fund this new city fee, or tax. Since the fee will help provide employees of local businesses affordable housing, all businesses should contribute to its funding. These businesses benefit from the tourist revenue and these employees keep the businesses running. A significant portion of the tourist dollars (revenue for the businesses and sales tax for the city) comes from short term rental taxes. Our property can accommodate up to 16 people and our customer base is primarily family reunions. These guests would choose another city for their vacation rather than stay in motels or hotels. Many of them have told us this. We believe the city should actively support these rentals instead of making it more difficult for us to operate successfully. While we believe all businesses should share in this tax, it is particularly disturbing that bed and breakfasts, hotels, motels, and other lodging venues are excluded. We believe the premise that short term rentals alone cause the work force housing shortage is unsubstantiated. Another viable option to reconsider is allowing the rental of auxiliary housing for workforce employees, especially seasonal ones. Parking, noise, and other objections can be dealt with through existing city ordinances. We sincerely appreciate you working to solve this housing shortage, but please consider the unfairness in requiring only short term rentals to bear the burden. Please spread the new tax to all businesses, therefore, reducing the impact on one segment of your constituents. Thank you. Sincerely, Jim and Lois Gunlicks, Short Term Rental and Affordable Housing situation Sherry Timm <steve_sherry@q.com> Sun, Aug 22, 2021 at 2:36 PM Good Morning, Amazing that you are not requiring hotels, motels, bnbs, and I’m sure huge places like Estes Park Condos who didn’t have to get the registrations and live safety done are also exempt from helping pay for the study. You need to reconsider who has to pay for this research for affordable housing. One more thing of interest: next to my place are 3 empty houses that have been inherited that aren’t even being used over the 4th of July. They sit empty. This kind of thing also is causing housing shortages. 2 are next to me and 1 has a house in between mine and it. But there are 3 empty houses within a half block of my place. It looks like you need to build more of the low income housing apartments that you have already built. Thank you for listening and reading, Sherry Timm STR tax for affordable housing Centurytel <prnmd@centurytel.net> Sun, Aug 22, 2021 at 7:44 PM Dear Fellow citizen, I am writing out of concern regarding the consideration being given to single out a small subset of the population for additional taxation. This type of plan represents the worst of the tendencies of any government, to choose to tax only certain citizens for whom you seem to have less regard than others. If there is a segment of the population that cannot afford to share in the activities of government, then give some deferment of the taxation to that group, but don’t choose to punish one group that you do not think can affect you as much politically and not ask others that can certainly afford to share in the cost. We who own short term rentals are a varied population but we share one thing, a love of the Estes Park area. It is not just the owners but property managers and cleaners (among other support personnel) who already pay local taxes in various forms. We also bring in many thousands of tourists who support the economy and pay taxes. You have already in recent years added to our burden of fees and if more is added, that will also then need to be passed on to renters. Eventually, families, the type of whom we attracted with affordable rentals for a large family or two families together will be priced out of coming to Estes. Please reconsider pursuing the ill conceived and unfair plan. Sincerely yours, Paul Neis Public Comment Received by 08-24-2021 12:00pm Page 119 STR tax Dolores Neis <dodyneis@gmail.com> Sun, Aug 22, 2021 at 7:27 PM I disagree with having a tax on short term rentals to fund the affordable housing initiative. We purchased a condo in Estes and stay there several weeks every year. We rent it out through a manager and pay a permit. This is not a fair way to just expect short term rentals to handle the load. Dody Neis STR - Recent meeting and potential actions Jim Meek <jrmeek57@gmail.com> Mon, Aug 23, 2021 at 1:41 PM I am an owner of a STR in Estes Park that I have owned for 10 years now. While I was concerned when the town began to add regulations to STR 5 – 6 years ago, I also recognized the need to address concerns of neighbors and other permanent residents. I have a good relation with my neighbors. I accepted the new regulations and agreed some minimum standards were needed. The inspections turned into a 3 year process, and lots of uncertainty, including last minute work to be in compliance. Some of this went beyond common sense, but I am in compliance, have a safe, clean and comfortable home for guests. I have spent significant sums to keep the home well maintained, safe and providing guests with lots of amenities. Now I hear about the recent meeting and the quick decision to consider a study (with end result already settled) to add a fee or tax on STR to address the affordable housing situation. Estes Park needs to develop a comprehensive approach to “affordable housing”. EP also needs to access all available funding and resources (see paragraph below). Further, EP is by far not the only town dealing with “affordable housing”. The entire state no longer has affordable housing. That said, it would be a good idea to assess and discuss with other towns what approaches they are considering to address this issue. Town Trustees need to first become more knowledgeable on the Affordable Housing Crisis Issue and best practices not only from other Colorado Mountain towns but also best practices from Colorado Developer’s on how to eliminate the “barriers” in Estes Park and incentives that actually work to promote the building of Affordable Housing. The Trustees should stop focusing on a STR Fee Study (a very small part of the issue) and instead focus all efforts on obtaining grant money under all 3 grant programs under the newly enacted HB21-1271. Furthermore, as discussed below, the Trustees can obtain funding to pay for the Consultant to put together a comprehensive Affordable Housing plan & strategy under the NEW “local government grant funding program” provided under HB21-1271, enacted June 27, 2021. Below in Paragraph [1] is a summary and a link to an article from The Colorado Sun that I found as a helpful starting point towards learning more about the Affordable Housing Issue in Colorado, and after reading this article I researched House Bill 21-1271 and I learned that it was enacted into law on June 27, 2021. Below in Paragraph [2] is a summary and link to HB 21- 1271 that provides for grant money in 3 different program in the department of local affairs (DOLA): [1] “Developers working on affordable housing in Colorado’s mountains offer suggestions for pending wave of funding”, June 9, 2021. https://coloradosun.com/2021/06/09/colorado-mountains-developers-affordable- housing-funding/ · The unprecedented housing crisis in Colorado will soon see an equally extraordinary flood of cash. · In Colorado’s high country, where affordable housing is a decades-long issue that exploded into a catastrophe last year, an army of developers on the front lines of a complex campaign to build workforce housing are ready to help guide the sudden influx of funding. · State and federal money is coming soon. House Bill 21-1271 would provide $13 million to communities that adopt rules that promote affordable housing projects. The legislation would create three grant programs for housing development, planning and a “affordable housing guided toolkit” for communities, all managed by the 2 Division of Local Government in the Department of Local Affairs. Any long term/permanent resident will sell their home for a market price, not a subsidized price; and I doubt the town will assess a fee on the sellers. Why not? That sale adds to the skyrocketing value of properties as much or more than STR’s. So picking on STR is simply unfair, wrong, and asking for a fight. The issue of “affordable housing” is not one that was created by owners of STR’s, and the focus should not be on STR’s. This issue cannot be addressed by individual towns alone; most other Colorado Mountain towns are dealing with similar issue. The state and counties need to step up and work toward a comprehensive solution. Page 120 I also know the issue of transferability is in question. I have a right to sell my home with the permit – period! I do not have plans to sell any time soon, BUT any action by the town to negate or cancel my permit as a result of a sale would be met with legal action if it interferes with a sale. STR License Cap: suspend any talk of raising the cap while you are putting together a comprehensive plan on how to address the Affordable Housing Issue. It should be addressed but, as part of a comprehensive approach. I plan to eventually live in my home at some point in retirement. Until then, I remain an STR owner who takes care of my property, treats guests and neighbors with respect, remain in full compliance and through my guests, add to the economy of EP. The approach going forward must be cooperative, open and transparent. Without that, there will be difficulty solving any problems. I am reminded how the Trustees treated owners of STR’s last year during the COVID pandemic; a second stab at STR’s owners is not a wise or thoughtful course of action. Please be considerate and deliberate for taking action. Regards, Jim Meek STR discussion Mark Richins <mlrichinns@gmail.com> Tue, Aug 24, 2021 at 10:31 AM I am writing in response to the STR discussion that was held and will continue this evening. As a new home owner in Estes (Jan 2020), we bought as a second home to have a place to spend time with family but also as retirement income to rent when we are not using it. We have found it to be not only profitable for us to have this but we enjoy helping those who want to visit our beautiful area have a comfortable, clean, safe and nice place to stay. We would love to invest in our town and continue to be an asset to the town economy and continue as funds allow to reinvest our investments in Estes Park. The discussions that are being had are discouraging to say the least. For a town that thrives on tourism and where the tourist and recreation industry is essential to its sustainability the restrictions and suggested taxing/fees being discussed is disheartening. I hope during your discussions that you will consider my input and impact on STRs. * I do not believe that any (or if so, very minimal amount) of Estes Park STR’s are taking away any affordable housing from the community and therefore should not be imposed upon for the solution to the affordable housing situation. * IF a fee was to be imposed, I do not feel it would be a fair imposition on only STRs and not all lodging accommodations in Estes. * permits that are already ACTIVELY being used as STRs (maybe with an occupancy percentage attached to it) should stay with the house when sold allowing those looking for investment property to be able to start profit right away. *Houses holding permits to increase property value but not being used for a significant STR occupancy should forfeit their permits to reduce the waiting list for those wanting to actively STR their property. * The STR cap should be increased which would help ease the burden of those wanting to use their homes as income properties but have to cover mortgages etc. and can’t wait 2-4 yrs on the waiting list (unless those permits that are held but not used are given up and reduce the waiting list significantly). Thank you for considering my suggestions and I hope that you will be an advocate for those STR owners who provide a valuable asset to the Estes Park tourism industry. Kindly, Laura Richins Estes Park Short Term Rentals RANDALL BURGE <randallburge@comcast.net> Tue, Aug 24, 2021 at 12:31 PM To all, It has come to our attention that at the recent Study Session it was discussed to investigate a proposed tax on short term rental owners. We feel it is unfair to target a specific group to fund a much broader issue of affordable housing in the Estes Valley. The entire town/area will benefit from more housing, it should be up to all to provide such resources. Regards, Randy & Jill Burge Page 121 Start date Agenda_Item_Title Name Stance_on_item For Against Neutral Comments_for_the_Board_of_Trustees_File_Upload 8/24/2021 12:07 PM Vacation Home Philosophy. Donna Carlson For 1 0 0 The Estes Chamber of Commerce formed the Vacation Rental Council (the Council) to give a unified voice to owners of Short-Term Rentals (STR) and to educate the town government on facts surrounding the STR market to inform sound decision-making. We are in favor of a fair and balanced, fact-based vacation rental philosophy. We urge you to partner with our business community in forming your opinions regarding decisions that will impact business revenue. The Estes Chamber of Commerce and its Vacation Rental Council are at your service in partnering to create a vacation rental philosophy in service to making this a great place for all of us to live, work and play. Chamber Vacation Rental Council Letter to Trustees August 24, 2021.pdf 8/24/2021 11:10 AM Vacation Home Philosophy.Alissa Anderson Neutral 0 0 1 Please see attached pdf To the town trustees and.pdf 8/24/2021 10:14 AM Vacation Home Philosophy.Nicholas C Ducharme Against 0 1 0 File uploaded EP Comments.pdf 8/23/2021 9:50 AM Vacation Home Philosophy. Ed Wagner Neutral 0 0 1 See attached document EP Vacation Home Philosophy.pdf 8/23/2021 3:04 PM Vacation Home Philosophy. Dennis and Janet Byars Against 0 1 0 Please find attached our letter for your consideration. Thank you. Sincerely, Dennis and Janet Byars Letter to Town of Estes Park.August 23, 2021.pdf 8/23/2021 10:59 AM Vacation Home Philosophy.Vincent J Laurent Against 0 1 0 Please read our comments about the STR proceedings.STR Letter.pdf 8/23/2021 1:55 PM Vacation Home Philosophy.Darren Rundell-Little Against 0 1 0 See document uploaded.STR nightly rate proposal.pdf 8/23/2021 1:54 PM Vacation Home Philosophy. James R Meek Against 0 1 0 I am an owner of a STR in Estes Park and have been for 10 years. I was concerned when the town began to add regulations, but I recognized the need to address concerns of neighbors and other permanent residents. I have a good relation with my neighbors. I accepted the new regulations and agreed some minimum standards were needed. I have spent significant sums on my home to keep well maintained, safe and providing guests with comfort. I am opposed to a study/action to add a fee or tax on STR to address the affordable housing situation. Estes Park needs to develop a comprehensive approach to “affordable housing”, and access all resources and seek county and state support. Permits are transferable. CAP increase could be considered in a comprehensive approach. Picking on STR's is not a solution. Homes sold that are not STR's show the value of properties, and the town is not assessing fees to those who sell these homes. Please be considerate and deliberate before taking action. Page 122 8/22/2021 9:04 PM Vacation Home Philosophy. Gordon C Ulrickson For 1 0 0 I am in favor of Workforce Housing for the Estes Park Area, but not with the sole funding source of Vacation Rentals. This cost should be shared by all Estes Park Area businesses. Comments to Town Trustees on Workforce Housing.pdf 8/22/2021 7:34 PM Vacation Home Philosophy. Theresa Flicek Neutral 0 0 1 We wanted to respond to the new tax being considered. We just started using our permanent condo as an STR. We live in it full time during the week and then rent it out on weekends to use as a supplement to our income. Because this is our permanent home we could not use this as a place for workforce housing. We are using the funds we make to pay for improvements and to lower our mortgage. When we purchased our home 14 years ago we could barely do it and it was a foreclosure. Housing costs have always been and always will be high due to the location. Not due to STR’s ONLY. Taxation to help with affordable housing ok, but maybe Estes businesses with workforce needs should work together with STRs and others to pay taxes to address affordable housing issues. Not just STR’s. We are working hard to provide a nice place for people to stay. We hope and know these guests will then go forward and spend money in Estes businesses and restaurants. Sincerely, Theresa Flicek and Rob Teigen 8/22/2021 4:13 PM Vacation Home Philosophy. Lowell Richardson Against 0 1 0 Please my comments concerning agenda item vacation rental philosophy letter to town board 8-22-21.pdf 8/22/2021 11:20 AM Vacation Home Philosophy. BJ & Ann Wakely Against 0 1 0 Please review our PDF letter against the vacation rental license tax. Town of Estes Park- Vacation Rental Letter.pdf 8/21/2021 4:06 PM Vacation Home Philosophy. Kevin Pugh Against 0 1 0 Please find the attached letter to the board regarding the proposed plan to add a nightly fee and/or tax to short term rentals. Thank you. Kevin EP_trustees_letter.pdf Page 123 8/20/2021 5:55 PM Vacation Home Philosophy. Penny McCord Against 0 1 0 If this is driven by the need for affordable housing for persons working in Estes Park to provide services to vacationers and other persons in town, it seems like the commercial vacation rentals use more of these employees. It does not seem fair to have residential vacation homes pay more fees or taxes. Having vacation rentals self report occupancy and then trying to police this also will be burdensome for both the city and the owner of the vacation rental. It seems like a better way to raise revenue for affordable housing would be to raise the annual rental permit fees based on the approved occupancy level. This could be tiered similar to current renewal rates. It would also make it more costly for owners to keep their rental permit if they are not renting their property. Page 124