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HomeMy WebLinkAboutPACKET Town Board 2012-12-11NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. The Mission of the Town of Estes Park is to plan and provide reliable, high-value services for our citizens, visitors, and employees. We take great pride ensuring and enhancing the quality of life in our community by being good stewards of public resources and natural setting. BOARD OF TRUSTEES - TOWN OF ESTES PARK Tuesday, December 11, 2012 7:00 p.m. AGENDA PLEDGE OF ALLEGIANCE. POLICE DEPARTMENT EMPLOYEE AWARDS. PUBLIC COMMENT. (Please state your name and address). TOWN BOARD COMMENTS. TOWN ADMINISTRATOR REPORT. 1. CONSENT AGENDA: 1. Town Board Minutes dated November 27, 2012, and Town Board Study Session Minutes dated November 27, 2012. 2. Bills 3. Committee Minutes – None. 4. Estes Valley Board of Adjustment Minutes dated November 6, 2012 (acknowledgement only). 5. Audit Committee Minutes dated August 14, 2012, September 25, 2012 and October 5, 2012 (acknowledgement only). 2. LIQUOR ITEMS: 1. NEW LIQUOR LICENSE – CABLES ESTES LLC DBA CABLES PUB AND GRILL, 451 S. ST. VRAIN AVENUE, HOTEL AND RESTAURANT LIQUOR LICENSE. Town Clerk Williamson. 2. TRANSFER OF OWNERSHIP – FROM RAMS HORN DEVELOPMENT COMPANY LLC DBA MARYS LAKE LODGE TO EP RESORTS INC. DBA MARYS LAKE LODGE, 2625 MARYS LAKE ROAD. Town Clerk Williamson. Prepared 11/30/12 * Revised NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. 3. REPORTS AND DISCUSSION ITEMS: 1. THIRD QUARTER FINANCIAL REPORT. Finance Officer McFarland. 2. BRIEFING ON PERFORMING ART CENTER. Town Staff. 4. PLANNING COMMISSION ITEMS. Items reviewed by Planning Commission or staff for Town Board Final Action. 1. CONSENT ITEMS: A. SUBDIVISION 1. PRELIMINARY AND FINAL SUBDIVISION PLATS, Wonderview Village Townhomes (FKA Wonderview Village Condominiums), 141 Willowstone Drive; Steve Murphree/Applicant. 5. ACTION ITEMS: 1. TREE BOARD APPOINTMENTS. 2. PARK R-3 SCHOOL DISTRICT SCHOOL RESOURCE OFFICER AGREEMENT. Chief Kufeld. 3. RESOLUTION #17-12 - 2012 SUPPLEMENTAL BUDGET APPROPRIATIONS. Finance Officer McFarland. 4. RESOLUTION #18-12 CABLE TELEVISION FRANCHISE AGREEMENT WITH BAJA. Attorney White. 5. RESOLUTION #20-12 POLE ATTACHMENT AGREEMENT WITH BAJA. Attorney White. 6. ORDINANCE #01-13 - NATURAL GAS FRANCHISE AGREEMENT WITH PUBLIC SERVICE COMPANY (XCEL ENERGY) – FIRST READING. Attorney White. • 31-32-103 C.R.S. requires two reading of an Ordinance for the passage of a franchise agreement for the operation of a gasworks company. Second reading January 22, 2013. 7. RESOLUTION #19-12 EXTENSION OF NATURAL GAS FRANCHISE AGREEMENT PUBLIC SERVICE COMPANY (XCEL ENERGY). Attorney White. 6. ADJOURN. MEETING CANCELLATION NOTICE: The Town Board meeting scheduled December 25, 2012 has been cancelled. Town of Estes Park, Larimer County, Colorado, November 27, 2012 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 27th day of November, 2012. Meeting called to order by Mayor Pinkham. Present: William C. Pinkham, Mayor Eric Blackhurst, Mayor Pro Tem Trustees Mark Elrod John Ericson Wendy Koenig Ron Norris John Phipps Also Present: Frank Lancaster, Town Administrator Lowell Richardson, Assistant Town Administrator Greg White, Town Attorney Jackie Williamson, Town Clerk Absent: None Mayor Pinkham called the meeting to order at 7:00 p.m. and all desiring to do so, recited the Pledge of Allegiance. PUBLIC COMMENTS. Jim Cope/League of Women Voters stated the deadline for utilizing the grant funds for recycling containers is June 30, 2013 including full installation. The LWV would need the support of the Town in order to take advantage of the grant. Curt Gleaves/ Estes Performance Incorporated (EPIC) member stated EPIC was incorporated as a non-profit in 2011 and secured the Park Theater Mall property in March of 2012. Supporters of the Performing Arts (SOPA), a 501 3(c), formed in December 2006 and EPIC merged in 2012 with SOPA as the surviving entity. SOPA then changed its name to EPIC. The MOU between SOPA and the Town was dissolved because SOPA determined a theater at the fairgrounds was not feasible and at the time requested the FOSH funds. Bruce Brown/Representative of Salud would like to request the Town consider a path along Dry Gulch from Hwy 34 to Stonegate Road for the safety of their clients. Greg Carner/County citizen spoke in opposition of a sidewalk along Dry Gulch stating there are not enough people that would use the sidewalk to warrant the cost. Blake Robertson/Town citizen spoke to the distribution of the FOSH funds and cautioned the Board there could be other valid interruptions of the FOSH agreement other than the one provided by Attorney White. TOWN BOARD COMMENTS / LIAISON REPORTS. Trustee Norris reported Visit Estes Park Board met to finalize their 2013 budget and held the first meeting of the new Association Forum. The Economic Development Task Force has completed draft recommendations and would be discussing them with the Town and other community organizations. The Bear Education Task Force has established the key messages and target audience, and would meet Friday, November 30, 2012 to develop plans, timeline and responsibilities for information dissemination. Trustee Koenig stated Sister Cities held their annual meeting and those interested in the program should contact Jim Thompson with any questions. Board of Trustees – November 27, 2012 – Page 2 Mayor Pro Tem Blackhurst informed the public the Citizen Information Academy (CIA) would be held February 6 through March 20, 2013 and encouraged those interested to complete an application. Trustee Ericson also encouraged the public to attend the CIA. He thanked the Town staff for a wonderful tree lighting ceremony. Mayor Pinkham thanked staff for the efforts in producing the past two weekend’s events including the tree lighting, parade and fireworks. TOWN ADMINISTRATOR REPORT. Update on the past weekend events: an estimated 30,000 attended the parade; the fireworks were cut short due to the dry conditions; and 740 skaters used the ice rink. Police Commander Rose reviewed a task list developed after the Woodland Heights fire including a number of communication issues: applied for and received priority for governmental emergency telephone (GET) to allow numbers on the list priority during emergencies; AT&T has agreed to place a temporary tower to increase capacity during the peak season; coordinate and partner with the RMNP to formalize interagency crisis communication plan; identified grant opportunity for an AM radio station to broadcast recorded messages during an emergency; formation of joint communication center at the Visitor Center; planning Emergency Management training for the staff, local businesses, and lodges; establish information lines for the local media and social media and develop talking points during an emergency; and hold a tabletop exercise for staff to review operations during an emergency. 1. CONSENT AGENDA: 1. Town Board Study Session Minutes dated November 13, 2012, Town Board Minutes dated November 13, 2012. 2. Bills. 3. Committee Minutes: a. Community Development/Community Services, November 15, 2012. 4. Estes Valley Planning Commission Minutes dated October 16, 2012 (acknowledgement only). 5. Resolution #13-12 – Schedule public hearing date of December 11, 2012, for a new Hotel and Restaurant Liquor License Application filed by Cables Estes, LLC dba Cables Pub & Grill, 451 S. St. Vrain Avenue. It was moved and seconded (Blackhurst/Koenig) to approve the Consent Agenda Items and it passed unanimously. 2. PLANNING COMMISSION ITEMS. Items reviewed by Planning Commission or staff for Town Board Final Action. 1. CONSENT ITEMS: A. AMENDED PLAT, Lots 1A and 1C of the Replat of a Portion of Lot 4 and All of Lot 1, Stanley Meadows Addition, Estes Park Sanitation, Applicant. Item continued to the January 22, 2013 meeting. B. AMENDED PLAT, Tract B, Booth Resubdivision of Lots 2, 3, 4, 5, 7, and a portion of Lots 1, 6, 8, & 9, Elkhorn Estates, Van Horn Engineering/Applicant. Board of Trustees – November 27, 2012 – Page 3 C. LOCATION AND EXTENT REVIEW, Stanley Park Multi-Use Stall Barns & Multi-Purpose Event Center (MPEC), Lot 1, Little Prospect Addition (portion of Stanley Park, Norris Design/Applicant. D. SUPPLEMENTAL CONDOMINIUM MAP #1, Stone Bridge Estates Condominiums, Phase II, Unit 1147; 1147 Fish Creek Road; Van Horn Engineering/Applicant. E. SPECIAL REVIEW 2012-05, A.R.T. Used Vehicle Sales; Lots 16 & 17, Quasebarth Resubdivision; Blake Hornsby/Applicant. It was moved and seconded (Blackhurst/Ericson) to approve the Consent Agenda subject to the findings and conditions recommended by the Estes Valley Planning Commission, and it passed unanimously. 3. ACTION ITEMS: 1. MUSEUM SENIOR CENTER MASTER PLAN CONTRACT. In April staff receive direction to develop a Request for Proposal (RFP) for the Museum and Senior Center Master Plan. An RFP was released and three proposals were received: • Anderson Hallas Architects, Golden, CO $80,383 • OZ Architecture, Boulder, CO $83,120 plus survey costs • T.W. Beck Architects, Estes Park, CO $14,570 plus consultants at cost plus 15% The scope of work includes a program development phase and a site master plan phase. The program phase would study the programming and demographic needs as it relates to the Museum and the Senior Center for the next 20 years. The site master plan would determine if the current footprints would accommodate the anticipated growth in usage and visitation of the Senior Center and Museum. The plan would result in a final recommendation for site locations and building uses of the next 20 years. Based on evaluation of the proposals, reference checks, level of prior experience with museums and senior centers, public sector experience and degree of on-site involvement, a stakeholders committee unanimously agreed Anderson Hallas Architects, PC would provide the best product. Trustee Ericson questioned the need for a 10% contingency with a consulting contract. Assistant Town Administrator Richardson stated the contingency would cover additional action items, desirable products or processes not covered by the RFP while producing alternative sites. It was moved and seconded (Norris/Koenig) to approve the consulting services contract with Hallas Architects for the Museum and Senior Center Site Master Plan for a not to exceed amount of $89,000, and it passed unanimously. 2. EMPLOYEE PERFORMANCE REVIEW TIMEFRAME. The current Town policy requires all employees to be evaluated at the first of the year and merit increases to be applied at that time; however, the policy has not been practices for several years. In 2006 an administrative directive required the evaluation of staff on their anniversary date and to award merit increases at that time. The Town’s Leadership team considers the evaluation of employees on their anniversary date a more equitable model and a more practical method. The anniversary method is a common practice with local governments, including the County, Loveland and Fort Collins. Staff would recommend the proposed changes to the Town’s Personal Policy Manual sections F, G, H, H.1 to allow performance reviews to be completed on the employee’s anniversary date. It was moved and seconded (Norris/Phipps) to approve modification to the Town’s Personnel Policy Manual sections F, G, H and H.1, and it passed unanimously. Board of Trustees – November 27, 2012 – Page 4 3. PUBLIC HEARING – 2013 BUDGET. Mayor Pinkham opened the public hearing and Finance Officer McFarland reviewed the budget adoption process and recapped changes to the budget that were requested by the Board at the November 13, 2012, Town Board meeting which are as follows: a. The $81,000 Museum and Senior Center Master Plan was moved to the 2012 budget in the Community Reinvestment Fund. b. The Stanley Park Sewer and Civil site work was increased to $350,000 in the Community Reinvestment fund and affects the fund balance for 2013. Finance Officer McFarland discussed the Highway User’s Trust Fund. He said the Fund consists of shared revenue, primarily derived from fuel tax and vehicle registrations, and estimated that in 2013 the Town will receive approximately $252,886. Funds will be utilized as part of the STIP overlay on projects such as street improvements, snow removal and plow blade work, vehicle and equipment usage, and traffic control items. Kay Norton Haughey/Town citizen requested the budget contain funds to address the Reclamation Subdivision issue raised at the last meeting and funds appropriated to move the water filling station on Fourth Street to eliminate traffic and increase safety. Steve Nagl/Town citizen would also support the relocation of the water station to the other side of the fairgrounds. Lew Larek/Town citizen also requested the Board consider fixing the issues addressed by Mrs. Norton Haughey in the Reclamation District. Finance Officer McFarland continued by presenting Resolution #14-12 to set the mill levy which is required in order to allow the Town to levy and collect property taxes. For 2013 the mill levy will be set at 1.822 mills, which will yield approximately $339,960 in property taxes. He said approval of Resolution #15-12 will adopt the 2013 budget, and Resolution #16-12 appropriates sums of money to execute the budget and states that revenues within each fund are sufficient to support expenditures. Trustee Ericson requested the Community Reinvestment Fund be removed from the approval of the budget to allow further discussion of the items. Finance Officer McFarland stated the budget can be adopted as presented with re-appropriations approved by the Board during 2013. Trustee Norris requested funds be appropriated for the Dry Gulch Road rebuild in 2014. Mayor Pro Tem Blackhurst stated it would be premature to add this commitment until the Board reviews all funding requests and capital projects. Trustee Norris stated an expectation the Board would discuss in full the capital needs of the Town early in 2013 in order to set priorities. It was moved and seconded (Ericson/Phipps) to approve Resolution #14- 12 to set the mill levy, Resolution #15-12 to adopt the 2012 budget, and Resolution #16-12 to appropriate sums of money, and it passed unanimously. 4. ORDINANCE #08-12 OPTION FOR EPIC TO PURCHASE TOWN-OWNED REAL ESTATE FOR PERFORMING ARTS CENTER. Town Attorney White stated the Estes Performance Incorporated (EPIC) has secured the Park Theater Mall property to build and operate a performing arts center and related facilities. In order to design and construct the project, EPIC has requested the Town sell a portion of the Town’s Riverside parking lot contiguous to the Park Theater Mall property. The Exclusive Option to Purchase Real Estate would grant EPIC the option to purchase the property on or before January 31, 2014. If the Option is exercised, the Town and EPIC would execute the Real Estate Sales Contract with a purchase price of $1 with EPIC responsible for all closing costs. The Town would receive a public access easement across the Park Board of Trustees – November 27, 2012 – Page 5 Theater Mall property; EPIC would design construct and maintain the Riverwalk across the Park Theater Mall property; and EPIC shall deliver a public access easement from the western side of the Mall property to Moraine Avenue. EPIC must complete a number of contingencies in order to close the Real Estate Sales Contract including: receiving all necessary approvals related to land use; delivery of the public access easement to the Town for the Riverwalk; delivery of the public access easement from the western side of the Park Theater Mall property to Moraine Avenue; negotiation of a Development Agreement between EPIC and the Town addressing construction of the project; receive approval of an Amended Plat for the Riverside Subdivision; prior to closing, EPIC shall acquire title to the Park Theater Mall property; and the Town and EPIC negotiate an agreement for the reversion of the Town’s property in the event construction of the Project is not commenced within three years of the date of closing. The Ordinance would approve the Exclusive Option to Purchase Real Estate. Administrator Lancaster stated the item was brought forward at the request of EPIC. It is staff’s role to make sure items brought forward to the Board contain complete and accurate information and that staff is not a barrier in the public accessing the Board. The staff simply developed the information for the Board’s consideration at the request of EPIC. Trustee comments: The Board has not discussed the proposed theater since EPIC submitted application for the height variance due to the quasi-judicial decision the Board may have to consider in the future, and therefore, does not have information on the project. The Board requested Town staff provide additional information on the proposed theater to allow the Board to make an informed decision. Trustee Elrod stated concern the Town does not have a policy on the purchase or sale of Town owned property; concerned with the value of the property to be sold and the value of the access easement; and the need for additional information before a decision on the sale of land to EPIC. Curt Gleaves/EPIC Board President stated EPIC requires the Town’s approval to sell the parking lot in order to move forward with the design review process and development plan process, which is estimated at a cost of $1 million and establishes a footprint for the building. He stated alternative layouts have been reviewed; however, they would not provide a building large enough to meet the required pro forma. The building requires the proposed width to accommodate the orchestra pit and loading dock area. He stated a formal appraisal may not be possible due to a lack of comparables for either the parking lot or the public access easement. The cost of the public improvements for the Riverwalk and the public restrooms are estimated at a cost of $500,000 to $750,000 with EPIC continuing to bear the cost of ongoing maintenance of the facilities. Those opposing the Option included Tony Paglia/business owner, Hank Glover/business owner, Heather Stone/Town citizen, Steve Nagl/Town citizen and business owner, Paula Steige/business owner, Ty Nagl/Town citizen and business owner, Dave Callahan/Town citizen and business owner, Elaine Downing/Town citizen, and Marsha Hobert/Town citizen and business owner. Comments against the Ordinance have been summarized: The Town has a survey outlining the need for additional parking spaces; parking spaces are worth a lot to downtown businesses; the proposed theater would occupy all but 41 spaces if the theater was sold out, therefore, leaving very few spaces for customer parking for all other downtown businesses; the proposed theater complex would be too large, too tall and look out of place downtown; EPIC has not made contact with the local businesses and citizens about the development; Orlandos Steak House above the Wheel would lose the current views and look at the back of the theater building; as a shuttle bus driver downtown during the summer it is obvious there would not be adequate parking for theater goers during the peak season; the creation of the post office parking lot and dark horse parking lot increased sales tax collection downtown; with 200 parking spaces occupied for 3 hours during a performance there will be little Board of Trustees – November 27, 2012 – Page 6 turnover of parking space for patron of other businesses; the impact to the area of the proposed development is unknown; the 20 parking spots lost to the development would cost the local businesses $500,000 during the 120 days of the peak season; other businesses such as the Wheel Bar have provided easements to the Riverwalk at no cost and provided public bathrooms; the minimum 18 months to construct the proposed theater would affect the downtown businesses negatively; performing arts should be a park of Estes Park but not at the expense of the other businesses; the theater at roughly 700 seats is too large for Estes Park and would negatively affect downtown businesses; the loss of parking spaces with the construction of the Riverwalk along Wiest caused the businesses to loss income; customers do not want to walk or park offsite to patronized downtown businesses; the downtown does not have the infrastructure to accommodate a large theater; additional study sessions should be held to discuss the issue further before decisions on the project are considered; concerned the size of the theater may not contain a stage large enough for the types of performances to be held; and stated concern the commercial ventures may not be able to support the theater. Those speaking in favor of the proposed theater development included Charley Dickey/Town citizen and business owner, Dave Bowers/Town citizen, Stan Black/EPIC member, Greg Rosener/Town citizen, and Ellie Williams/County citizen. Comments have been summarized: the project would enhance the downtown; parking for the project would only be an issue for 90 to 120 days; the Transportation Visioning Committee identified the need for business owners and employees to park offsite to help alleviate parking congestion; parking permits for residential use in the downtown corridor also affects the number of available parking spaces; there are a number of no cost parking solutions that would improve parking downtown; the benefit to the town is three fold including the local businesses, local performers and a broader audience drawn to Estes Park; the proposed development would create the largest economic development the town has seen and be the launching pad for addressing the parking issue; and supports the theater, however, questions if the size is appropriate. Stan Black/EPIC member stated the proposed theater complex would make a performing arts theater possible in Estes Park with the commercial venture within the building offsetting the cost of the theater operations; replace the largest anchor building in town at 48 feet high; the building would only be fully occupied 6 times a year for 3 hours based on the business plan; he stated EPIC spoke with over 500 people prior to the variance request and was in the paper 8 times including the Denver Post; the request only allows the project to move forward and does not approve the project; other building alternatives were reviewed and determined too expensive or fraught with pitfalls; EPIC approached the Town to determine the possibility of acquiring the land for the theater that would include a Riverwalk crossing and public restrooms built and maintained by EPIC with access 24/7; and this could be the last chance the town has to acquiring a performing arts theater at no cost to the Town. Lew Larek/Town citizen stated a performing art theater could be built at the old elementary location. Kay Norton Haughey/Town citizen stated the MPEC and Performing Arts Theater could be placed on the same corner at the fairgrounds if the stall barns were relocated. It was moved and seconded (Norris/Phipps) to extend the meeting to 11:00 p.m., and it passed unanimously. The Mayor called for a 10 minute break at 9:50 p.m. and resumed the meeting at 10:00 p.m. Further Board discussion was heard: Mayor Pro Tem Blackhurst estimates the value of the parking lot spaces at a value of $450,000 to $925,000. He stated the Town does not need the easement through the Park Theater Mall. He also Board of Trustees – November 27, 2012 – Page 7 suggested the Town could entertain discussion of a theater on Lot 4 with its own parking lot. Trustee Norris stated concern with the lack of facts, the traffic and the need to consider other locations to make the theater a success. Trustee Ericson commented the proposed theater complex could be a true economic driver for Estes Park for the next 20 to 30 years, and would be in favor of proceeding with the project. Trustee Koenig stated concern with the parking issue and the lack of information on the project. A vote in favor of moving forward would lead to $1 million spent by EPIC and set the Board up for further favorable votes on the project. Trustee Elrod stated he could not come to a conclusion on the adequacy of the contract with the information provided. After further discussion, it was moved and seconded (Phipps/Norris) to table the item to the January 22, 2013 meeting to provide additional public input and to provide further information, and it passed with Trustees Elrod and Ericson voting “No”. Staff would present a review of the project to the Board at an upcoming meeting in order to help the Board understand the scope of the project before the January meeting. Trustee Elrod requested staff quantify the value of the parking lot and easement. 5. REAPPOINTMENT OF SCOTT WEBERMEIER TO LOCAL MARKETING DISTRICT BOARD. The appointments of Scott Webermeier, Town appointment and Lee Lasson, County appointment, on the LMD Board expire on December 31, 2012. The positions were advertised jointly through the Town’s Administrative Services department and interviews were held on October 17, 2012. An interview panel including Town, County and LMD representatives interviewed seven qualified candidates. The interview team recommends the reappointment of Scott Webermeier for an additional 4-year term. It was moved and seconded (Norris/Phipps) to reappoint Scott Webermeier to the Local Marketing District Board for a 4-year term effective January 1, 2013 through December 31, 2016, and it passed with Trustee Ericson voting “No” and Trustee Koenig abstaining. 6. LOCAL MARKETING DISTRICT INTERGOVERNMENTAL AGREEMENT. Assistant Town Administrator Richardson presented the proposed IGA for 2013 between the Town of Estes Park and the Local Marketing District (LMD). The 2013 IGA contains the following components: LMD shall pay for all costs associated with Town of Estes Park benefits offered to LMD employees; coordination of regularly scheduled meeting between both entities; the Town’s Visitor Center would deliver guest services and provide recommendations regarding operations and service delivery; sale of items at the Town’s Visitor Center and advertising sales by the Town; allow the LMD to use photos owned by the Town and collected for marketing and promotion purposes; and an audit of the LMD if required shall be paid for by the LMD. The IGA has been reviewed and approved by the LMD Board. It was moved and seconded (Koenig/Elrod) to approve the 2013 Intergovernmental Agreement with the Estes Park Local Marketing District, and it passed unanimously. 7. WATER CONSERVATION PLAN. Director Bergsten stated the water conservation plan was reviewed by the Public Safety, Utilities and Public Works Committee and presented to and adopted by the Town Board in April 2012. The Colorado Water Conservation Board requested the document be open for public review and comment for 60 days prior to final Board approval. The posted 60 day period ended November 19th and no public comment was received. Kay Norton Haughey/Town citizen questioned if the plan contains provisions for the recapture of grey water for other uses such as landscaping. Attorney White commented the Town does not have a rainwater catchment right and the water augmentation would have to be reviewed because at this time the Town has the right to use water once and then release it. Board of Trustees – November 27, 2012 – Page 8 After further discussion, it was moved and seconded (Koenig/Norris) to approve the Water Conversation Plan, and it passed unanimously. 8. TEMPORARY POLICY TO EXTEND TIMEFRAMES FOR BUILDING PERMITS AND APPLICATIONS. Director Chilcott stated in 2010 and 2011 the Board approved a temporary policy extending application and building permit dates due to the economic downturn. Without the extension, building permits are valid for 18 month from the date of issuance. The current extension expires on December 31, 2012. Staff has identified 500 open permits and has begun to contact homeowners and contractors to close permits. During the past 30 days 150 permits have been closed. Staff recommends extending the permits through March 31, 2013 with staff continuing to proactively reach out to property owners and contractors to close permits. In cases where permits were applied for, but not paid for, applicants have incurred and are responsible for fees. Staff recommends waiving the plan review fees, if the applicant chooses not to proceed with the permitted work. If approved by the Board, staff would provide monthly updates on the status of open permits at the Community Development/Community Services Committee meeting. It was moved and seconded (Koenig/Ericson) to approve the extension of open building permits from December 31, 2012 to March 31, 2013, and it passed unanimously. Mayor Pinkham whereupon he adjourned the meeting at 10:55 p.m. William C. Pinkham, Mayor Jackie Williamson, Town Clerk       Town of Estes Park, Larimer County, Colorado, November 27, 2012 Minutes of a Study Session meeting of the TOWN BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall Rooms 202 & 203 in said Town of Estes Park on the 27th day of November, 2012. Board: Mayor Pinkham, Mayor Pro Tem Blackhurst, Trustees, Elrod, Ericson, Koenig, Norris and Phipps Attending: All Also Attending: Town Administrator Lancaster, Assistant Town Administrator Richardson, Attorney White, and Town Clerk Williamson Absent: None Mayor Pinkham called the meeting to order at 4:30 p.m. FOSH FUNDING DISTRIBUTION Assistant Town Administrator Richardson presented the background of the Friends of Stanley Hall (FOSH) funds, stating the Town has served as the fiduciary for the funds through a written agreement since May 14, 2002. The original agreement was amended on May 6, 2006 and provided the Town with five years to determine feasibility of a performing arts theater. If the Town determined a theater was not feasible, the funds were to be disbursed to any Estes Valley non-profit organization whose purpose involves the performing arts. In March of 2012, the Town of Estes Park received written notice from the Supporters of the Performing Arts (SOPA) that a theater at Stanley Park was not feasible and dissolved the MOU with the Town related to the property and infrastructure improvements. Town staff has been developing a method for which to distribute the FOSH funds with the understanding a theater is not feasible. Staff presented an announcement letter and application outline modeled after a standardized template used by the Federal Government for developing grants. Staff would complete the development of a final application with input from the Board for the distribution of the FOSH funds. Items to be discussed include the timing of the announcement, cultural arts and performing arts language contained within the original agreement versus the language contained in the amended agreement related to performing arts only, composition of the selection committee; and whether the Board would like a final report on those applications that are funded. Attorney White clarified the MOU between the Town and SOPA contained a commitment of the FOSH funds for the construction of a performing arts theater at Stanley Park. When the agreement was terminated in March, so to was the commitment of the FOSH funds to SOPA. Trustee Elrod stated when the agreement was terminated in March it was not clear at that time there was another entity working on building the theater. He suggested the Board should discuss the feasibility of the current entity Estes Performance Incorporated (EPIC) in completing the construction of a performing arts theater. Mayor Pro Tem Blackhurst stated the Town has determined multiple times, with a number of locations, that the theater is not feasible. He commented the Town has not received a request by EPIC for the FOSH funds. Trustee Koenig voiced the Town should follow the processes outlined in the original agreement, and would not favor rewriting the agreement because FOSH no longer       exists. She stated the announcement mentions both cultural arts and performing arts while the agreement focuses on performing arts, and therefore, the Town should honor the original intent of the agreement and remove cultural arts. There was consensus amongst the Board the funds should be distributed to performing arts organizations. Trustee Norris agrees with the process for distributing the funds; however, he requested the process identify specific criteria for making the decision on how the funds are distributed. The Board stated a formal report on how the funds were distributed would not be necessary; however, an overview on how the funds were used by the entities would be useful. It was suggested the review committee may contain two Board members, two community members and two members from outside the community with knowledge on performing arts. The experience base component of the application would be broadened to allow entities such as EPIC to apply. The Board would discuss the feasibility of a performing arts theater and the distribution of FOSH funds at the March 12, 2013 Board meeting. TOWN COMMITTEES AND TOWN BOARD ASSIGNMENT. Administrator Lancaster presented the policies for the Board’s review. Assignments are made at the second meeting in April after on even years after the new Board is seated and should be reflected in the policy. Trustee Ericson suggested members of the Town Board Committees (CDCS and PUP) should be the liaison to the perspective groups such as Planning Commission, Senior Center, etc. Town Committees The Board questioned if a recognition party should be included in the policy, and suggested the text be changed to state volunteers shall be recognized. With regard to recruitment, the Town Clerk should be changed to Administrative Services. USE OF MAYOR CONTINGENCY FUND. Trustee Elrod stated there should be a policy on how the funds should be used and who has access to the funds. He suggested perhaps each Trustee should be given a contingency fund. The Board discussed the need for a procedure for reviewing each request to determine appropriateness. Town Administrator Lancaster would investigate what polices other municipalities use locally and nationally and bring results forward for the Board’s consideration in developing a policy. FUTURE AGENDA ITEMS. The Board requested training on development processes such as location and extent review, quasi-judicial versus legislative, and the Board’s roles and processes related to each. Other items of interest include: Strategic planning, capital planning and management, Open meeting law and communication, Town Board training, horse drawn carriages downtown, and transportation committee role and mission. MISCELLANEOUS Attorney White reviewed the quasi-judicial versus legislative issues related to the location and extent review process for the MPEC and stall barn, and items related to the Performing Art Theater such as the land purchase – legislative and land use decisions – quasi-judicial. He stated with the theater it is difficult to separate out the discussions, therefore, he recommends the Board consider the project quasi-judicial for all matters as it relates to exparte communication. There being no further business, Mayor Pinkham adjourned the meeting at 6:42 p.m. Jackie Williamson, Town Clerk RECORD OF PROCEEDINGS Regular Meeting of the Estes Valley Board of Adjustment November 6, 2012, 9:00 a.m. Board Room, Estes Park Town Hall Board: Chair John Lynch, Members Bob McCreery, Wayne Newsom, Jeff Moreau, and Pete Smith; Alternate Member Chris Christian Attending: Chair Lynch, Members McCreery, Newsom, and Moreau Also Attending: Planner Shirk, Recording Secretary Thompson Absent: Member Smith Chair Lynch called the meeting to order at 9:00 a.m. The following minutes reflect the order of the agenda and not necessarily the chronological sequence. There were three people in attendance. 1. PUBLIC COMMENT None. 2. CONSENT Approval of minutes of the October 2, 2012 meeting. It was moved and seconded (Newsom/Moreau ) to approve the Consent Agenda as presented and the motion passed unanimously with one absent. 3. LOT 1, DEVILLE SUBDIVISION, 540 S. St. Vrain Avenue Chair Lynch recused himself and left the dais. Member Newsom acted as Chair for this portion of the meeting. A quorum was present with three members at the dais. Planner Shirk reviewed the staff report. The applicant, O’Reilly Automotive Stores, Inc. has requested variance from Estes Valley Development Code (EVDC) Section 4.4, Table 4-5, which requires buildings and accessory structures be setback a minimum of 15 feet from the side property line in the CO–Commercial Outlying zone district. The request was to allow an 8-foot side setback to construct a proposed retail auto parts business. Planner Shirk explained the EVDC typically requires the loading area be separate from the parking area. The applicant proposed to use the east side of the lots/parking area to also serve as a loading zone for the delivery truck. He stated deliveries would be made when the store was closed. Planner Shirk stated the EVDC also requires that the front door of businesses fronting arterial streets be oriented toward that arterial street. It was unlikely that the Colorado Department of Transportation (CDOT) would grant a front entrance on S. St. Vrain Avenue; therefore, the applicant has proposed making the building entrance on the south side of the building, facing Graves Avenue. Planner Shirk stated a development application should be submitted by the applicant within the next couple of months. That application would address parking, landscaping, trash enclosures, stormwater drainage, etc. Planner Shirk stated the variance application was forwarded to all affected agencies and adjacent property owners. No comments were received from neighbors. No significant issues or concerns were expressed by reviewing staff relative to code compliance or the provision of public services. Staff found the following: 1. This request complies with review criteria set forth in Section 3.6.C of the Estes Valley Development Code. 2. Special circumstances exist and practical difficulty may result from strict compliance with Code standards. 3. The variance is not substantial. RECORD OF PROCEEDINGS Estes Valley Board of Adjustment 2 November 6, 2012 4. The essential character of the neighborhood would not be substantially altered, nor would adjoining properties suffer a substantial detriment. 5. This request has been submitted to all applicable reviewing agency staff for consideration and comment. No significant issues or concerns were expressed by reviewing staff relative to code compliance or the provision of public services. 6. The variance would not adversely affect the delivery of public services. 7. The applicant is notified that a stormwater management plan will be required with development plan approval, and will be subject to review and approval of the Public Works Department. 8. Electric connections will need to meet NEC/NESC clearance requirements or be placed below ground, at the applicant’s expense. 9. The variance represents the least deviation from the regulations that will afford relief. 10. The submitted conditions or circumstances affecting the property are not of so general or recurrent a nature as to make reasonable practicable the formulation of a general regulation for such conditions or situations. 11. Failure to apply for a building permit and commence construction or action with regard to the variance approval within one (1) year of receiving approval of the variance shall automatically render the decision of the BOA null and void. Planner Shirk stated staff recommended approval of the requested variance with conditions listed below. Public Comment Mark Wold/Applicant stated staff was very cooperative and helpful in providing information for the setback variance. He stated they are proposing the largest parking area possible to allow for delivery truck access. Staff and Board Discussion None. Conditions 1. Compliance with the site plan and building design, as approved by the Board of Adjustment, with modifications as necessary during review process (parking, landscaping, trash enclosure, etc.) 2. Setback Certificate. Prior to final inspection, a registered land surveyor shall provide to the Community Development Department a signed and stamped certificate that specifically verifies that the structure complies with the approved variance, and shall include a specific reference to the distance to property lines. Staff recommends a surveyor set survey stakes for foundation forms to ensure compliance with the approved variance. 3. Trash enclosure shall be relocated to maintain at least an 8-foot side yard setback, and shall be screened as required by the development code. It was moved and seconded (McCreery/Moreau ) to approve the variance request as presented with the findings and conditions recommended by staff and the motion passed unanimously with one absent and one recusal. Chair Lynch returned to the dais. 4. LOT 1, LITTLE PROSPECT ADDITION (Portion of Stanley Park), TBD Rooftop Way Planner Shirk reviewed the staff report. The applicant has requested variances to Section 4.4, Table 4-5 Maximum Height to allow two new public facilities to exceed the maximum allowed height of 30 feet. The public facilities are the multi-use stall barns and the multi- purpose event center (MPEC) to be located at Stanley Park Fairgrounds. Planner Shirk reviewed the process required for a project of this magnitude. He stated the Location and Extent/Special Review portion of the project was scheduled for the November 20th Planning Commission meeting. The Planning Commission would be the recommending body for the Town Board, who was scheduled to review the project on November 27, 2012. If there was Town Board opposition to the Planning Commission RECORD OF PROCEEDINGS Estes Valley Board of Adjustment 3 November 6, 2012 recommendation, a majority vote of the entire Town Board would be required to overturn the recommendation. Planner Shirk stated a Master Plan for Stanley Park Fairgrounds was developed six years ago, which reviewed basic orientations of land uses. In 2006, it was anticipated there may be additional development on the property. The Master Plan showed barn structures on the west side, though the design was slightly different. With the proposed construction of new stall barns, some of the existing stall barns on the east side would be removed. The goal is to eventually replace all of the existing stall barns. Planner Shirk stated the Colorado Department of Transportation was interested in a traffic study due to the anticipated increased use of the fairgrounds. Planner Shirk stated the roof of the proposed stall barns would comply with the 30-foot height limit. Three proposed cupolas on top of the roof would be less than one foot above the maximum height limit. The designer was proposing a clerestory (light well) incorporated into the roof of the MPEC which would be 37 feet 6 inches tall from grade. The primary roof of the MPEC would comply with the 30-foot height limit. Planner Shirk stated, if approved, the variance would be valid for one year. If the building permit was not pulled within one year, the applicant would need to reapply for another variance. The Location and Extent review, if approved, would be good for three years. Member McCreery was concerned that the variance application was submitted prior to the approval by the Town Board. Planner Shirk stated the variance was the first step in the review process. If approved by the Town Board, the plan would be to have the stall barns built and open prior to next summer. The MPEC was still somewhat undefined. He explained the Board had the option to vote only on the stall barns and leave the MPEC until the design is finalized. Member Newsom stated citizens were always sensitive to height variances. Planner Shirk stated the cupolas on the stall barn were strictly aesthetic, intended to break up the long roof line. In reviewing the application, staff found the following: 1. This request complies with review criteria set forth in Section 3.6.C of the Estes Valley Development Code. 2. Special circumstances exist and practical difficulty may result from strict compliance with Code standards. 3. The variance is not substantial. 4. The essential character of the neighborhood would not be substantially altered, nor would adjoining properties suffer a substantial detriment. 5. The variance would not adversely affect the delivery of public services. 6. The variance represents the least deviation from the regulations that will afford relief. 7. This request has been submitted to all applicable reviewing agency staff for consideration and comment. No significant issues or concerns were expressed by reviewing staff relative to code compliance or the provision of public services. 8. The submitted conditions or circumstances affecting the property are not of so general or recurrent a nature as to make reasonably practicable the formulation of a general regulation for such conditions or situations. 9. Failure to apply for a building permit and commence construction or action with regard to the variance approval within one (1) year of receiving approval of the variance shall automatically render the decision of the BOA null and void. The Statement of Intent includes a request for a 5-year approval period, though the Board cannot approve such request. Planner Shirk stated staff recommended approval of the requested variances, with conditions of approval listed below. Public Comment Elena Scott/applicant presented the plans for the stall barns and MPEC. She stated the project goals are to remove the dated stall barns on the east side (200 stalls) and to eventually have a 500 stall capacity (100 more than existing). She stated it was easy to exceed the 30 foot height on large buildings. The idea for new stall barns had been contemplated for years, and this particular project began in July, 2012. She stated she RECORD OF PROCEEDINGS Estes Valley Board of Adjustment 4 November 6, 2012 met with the Town Board on three separate occasions, and attended a neighborhood meeting on July 23, 2012. Ms. Scott stated that work could begin shortly after approval by the Town Board. Ms. Scott stated multi-use buildings would attract more people year-round, and could accommodate trade shows, conferences, fairs, etc. A high quality building would attract a high echelon of equestrian events. The proposed stall barns would include public restrooms on the west side of the building. The slope of the land is a 10-foot drop from south to north, and the detention pond would be located on the northwest corner of parcel. To keep the barns as far away from neighbors as possible, the design would include a large landscape buffer and additional parking spaces. She stated the design guidelines included creating cohesive architecture and improved design aesthetics, following the same guidelines as the grandstands. The plan would also include enhanced walkways to access the buildings. The east side of the building would have a porch that could be used by vendors. Ms. Scott stated the stall barns and MPEC would be designed so they could be connected, if desired. Ms. Scott stated the existing grade of the proposed stall barns would make the top of the roof 27’ 2 3/4'”, with the cupolas 30’ 11” above grade. The variance request is for 11 inches above finished grade. Ms. Scott stated the MPEC was proposed to be over 35,000 square feet in size. This building would have the capacity to accommodate concerts, tournaments, conferences, etc. The majority of the building would comply with the 30 foot height limit. The clerestory (light well) portion would extend beyond the 30 foot limit, to 37’ 6” above natural grade. The clerestory would allow natural lighting and ventilation into the building, and contribute to the overall aesthetics. She stated the height variance would be most noticeable from the east side of the building. Member McCreery was curious as to why the new stall barns could not be placed on the east side of the parcel, and Ms. Scott answered the slope of the land was too great to construct a large building. Member McCreery was concerned about the odor in the neighborhood to the west. Ms. Scott stated the new stalls would be enclosed, and waste would be removed frequently to lessen the odor. She noted the site had been a fairground for decades, and the designers were trying to make it appealing to everyone. Member Newsom stated this was a community project, and that the height variance request would make the buildings more attractive, would encourage more use of the land, and would help stimulate the town’s economy. Kay Norton-Haughey/adjacent property owner stated she attended the neighborhood meeting and realized the fairgrounds are an important part of the Estes Park community. She canvassed the neighborhood and other citizens and heard good support for the stall barns. Her concern was the odor and 4th Street traffic that would come with added events. She stated the additional development would alter the neighborhood, impact the quality of life, and lower property values in that area. She suggested the Board of Adjustment table the issue until the Planning Commission was able to review the development plan application. Member Newsom clarified that the Board of Adjustment was reviewing only the height variance, and encouraged Ms. Norton-Haughey to attend the Planning Commission and Town Board meetings. Staff and Member Discussion Member Newsom stated that if the location of the stall barns changed, it would still probably exceed the 30-foot height limit, and they would still be designed with the cupolas and clerestory. Chair Lynch was supportive of the west side location. Member McCreery stated he would prefer a very significant barrier between the barns and the neighborhood, such as many trees and shrubs. He expressed concern for the neighbors adjacent to the fairgrounds. Conditions 1. Compliance with the site plan and building design, as approved by the Board of Adjustment, with modifications as necessary during review process. RECORD OF PROCEEDINGS Estes Valley Board of Adjustment 5 November 6, 2012 2. Setback Certificate. Prior to final inspection, a registered land surveyor shall provide to the Community Development Department a signed and stamped certificate that specifically verifies that the structure complies with the approved variance, and shall include a specific reference to the distance to property lines. Staff recommends a surveyor set survey stakes for foundation forms to ensure compliance with the approved variance. It was moved and seconded (McCreery/Moreau) to approve the variance requests as presented with the findings and conditions recommended by staff and the motion passed unanimously with one absent. There being no further business, Chair Lynch adjourned the meeting at 10:15 a.m. ___________________________________ John Lynch, Chair ___________________________________ Karen Thompson, Recording Secretary Town of Estes Park, Larimer County, Colorado, August 14, 2012 Minutes of a meeting of the AUDIT COMMITTEE of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Municipal Building in said Town of Estes Park on the 14th day of August, 2012. Committee: Mayor Pinkham, Trustee Ericson, Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland Attending: Mayor Pinkham, Trustee Ericson, Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland, and Assistant Finance Officer McDougall Absent: None Chair Ericson called the meeting to order at 9:00 a.m.   DISCUSSION OF RFP OF AUDITING FIRM Swanhorst & Company has completed their 5-year agreement with the Town for auditing services. Finance Officer McFarland prepared the RFP for the 2012-16 CAFRs and other auditing services (see attached). The RFP was discussed and approved, and modifications were made per Committee suggestion. The RFP schedule calls for responses to be submitted to the Town by Friday September 7th, 2012. Finance Officer McFarland will distribute the responses to the Committee for perusal. At that point, either 1) a finalist will be selected, or 2) a group of finalists will be selected for interviews. OTHER NEW BUSINESS There was no other new business. There being no further business, Chair Ericson adjourned the meeting at 9:30 a.m. Steve McFarland, Finance Officer Town of Estes Park, Larimer County, Colorado, September 25th, 2012 Minutes of a meeting of the AUDIT COMMITTEE of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Municipal Building in said Town of Estes Park on the 25th day of September, 2012. Committee: Mayor Pinkham, Trustee Ericson, Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland Attending: Mayor Pinkham, Trustee Ericson, Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland, and Assistant Finance Officer McDougall Absent: None Chair Ericson called the meeting to order at 3:00 p.m.   DISCUSSION OF RFP OF AUDITING FIRM The Town received 7 responses to its RFP for Auditing Services. The responding firms were: 1. Anton Collins Mitchell 2. Clifton Larson Allen 3. Swanhorst & Company 4. Logan & Associates 5. Rubin Brown 6. Eide Bailly 7. McGee, Hearne & Paiz The firm BKD responded with a letter that declined to offer a proposal. The Committee graded the proposals with a criteria/rating sheet (see attached) that was in accordance with the stated criteria in the RFP. The Committee selected as finalists the firms Anton-Collins-Mitchell, Rubin Brown, and Clifton-Larson-Allen. A subcommittee of Ericson, McFarland, and Richardson was formed to interview the finalists and to report back to the Committee with a recommendation to bring forward to Town Board. Audit Committee – September 25, 2012 – Page 2 OTHER NEW BUSINESS There was no other new business. There being no further business, Chair Ericson adjourned the meeting at 4:00 p.m. Steve McFarland, Finance Officer Town of Estes Park, Larimer County, Colorado, October 5th, 2012 Minutes of a meeting of the AUDIT COMMITTEE of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Municipal Building in said Town of Estes Park on the 5th day of October 5th, 2012. Committee: Mayor Pinkham, Trustee Ericson, Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland Attending: Mayor Pinkham, Trustee Ericson, Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland Absent: Assistant Finance Officer McDougall Chair Ericson called the meeting to order at 12:00 p.m.   DISCUSSION OF RFP OF AUDITING FIRM The subcommittee of Ericson, McFarland and Richardson interviewed the following Auditing firm finalists on the afternoon of Wednesday October 3rd, 2012: 1. Anton Collins Mitchell 2. Clifton Larson Allen 3. Rubin Brown Based upon the interviews, the subcommittee unanimously agreed to recommend the firm of Clifton-Larson-Allen. The recommendation was approved by the Audit Committee, and the recommendation is to be delivered to Town Board for discussion – approval, at the October 23rd, 2012, Town Board meeting. OTHER NEW BUSINESS There was no other new business. There being no further business, Chair Ericson adjourned the meeting at 12:30 p.m. Steve McFarland, Finance Officer Page 1 TOWN CLERK Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Jackie Williamson, Town Clerk Date: December 11, 2012 RE: Liquor Licensing: New Hotel and Restaurant Liquor License Application for Cables Estes LLC dba Cables Pub & Grill, 451 S. St. Vrain Avenue Background: An application for a new Hotel and Restaurant Liquor license was filed with the Town Clerk’s office on November 8, 2012, by Cables Estes LLC dba Cables Pub & Grill. This application was sent to the Liquor Division for a concurrent review in order to have the license approved by the State at the same time as the Town. This will enable the new restaurant to begin the sale of alcohol as soon as possible. All necessary paperwork and fees were submitted and the applicant was made aware of the TIPS training requirement. Please see the attached hearing procedure for more information. Budget: None. Staff Recommendation: None. Sample Motion: Finding. The Board of Trustees finds that the reasonable requirements of the neighborhood are/are not met by the present liquor outlets in the neighborhood and that the desires of the adult inhabitants are/are not for the granting of this liquor license. Motion. I move to approve/deny the new Hotel and Restaurant Liquor License for Cables Pub & Grill. 1 July 2002 PROCEDURE FOR HEARING ON APPLICATION NEW LIQUOR LICENSE 1. MAYOR. The next order of business will be the public hearing on the application of Cables Estes, LLC dba CABLES PUB & GRILL for a New Hotel and Restaurant Liquor License located at 451 S. St. Vrain Avenue. At this hearing, the Board of Trustees shall consider the facts and evidence determined as a result of its investigation, as well as any other facts, the reasonable requirements of the neighborhood for the type of license for which application has been made, the desires of the adult inhabitants, the number, type and availability of liquor outlets located in or near the neighborhood under consideration, and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed. OPEN PUBLIC HEARING 2. TOWN CLERK. Will present the application and confirm the following: The application was filed November 8, 2012. At a meeting of the Board of Trustees on November 27, 2012, the public hearing was set for 7:00 p.m. on Tuesday, December 11, 2012. The neighborhood boundaries for the purpose of this application and hearing were established to be 4.7 miles. The Town has received all necessary fees and hearing costs. The applicant is filing as a Limited Liability Company. The property is zoned CO which allows this type of business as a permitted use. The notice of hearing was published on November 30, 2012 . The premises was posted on November 28, 2012 . 2 There is a police report with regard to the investigation of the applicant. Status of T.I.P.S. Training: X Unscheduled ____ Scheduled Completed There is a map indicating all liquor outlets presently in the Town of Estes Park available upon request. 3. APPLICANT. The applicants will be allowed to state their case and present any evidence they wish to support the application. 4. OPPONENTS. The opponents will be given an opportunity to state their case and present any evidence in opposition to the application. The applicant will be allowed a rebuttal limited to the evidence presented by the opponents. No new evidence may be submitted. 5. MAYOR. Ask the Town Clerk whether any communications have been received in regard to the application, and if so, to read all communication. Indicate that all evidence presented will be accepted as part of the record. Ask the Board of Trustees if there are any questions of any person speaking at any time during the course of this hearing. Declare the public hearing closed. 6. SUGGESTED MOTION: Finding. The Board of Trustees finds that the reasonable requirements of the neighborhood are/are not met by the present liquor outlets in the neighborhood and that the desires of the adult inhabitants are/are not for the granting of this liquor license. Motion. Based upon the above findings, I move that this license be granted/denied. Page 1 TOWN CLERK Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Jackie Williamson, Town Clerk Date: December 11, 2012 RE: Liquor Licensing: Transfer of Ownership from Rams Horn Development Company LLC dba Marys Lake Lodge to EP Resorts, Inc., dba Marys Lake Lodge, 2625 Marys Lake Road, Tavern Liquor License. Background: EP Resorts, Inc., dba Marys Lake Lodge located at 2625 Marys Lake Road, is requesting a transfer of the Tavern liquor license currently held by Rams Horn Development Company LLC. The application was submitted to the Town Clerk’s Office on September 28, 2012, and a temporary license was issued on that date. EP Resorts, Inc., has submitted all necessary paperwork and fees. The applicant is aware of the TIPS training requirement and he and 11 staff members satisfactorily completed the TIPS training session which was hosted by the Town of Estes Park on November 12, 2012. Budget: None. Sample Motion: I move to approve/deny the Transfer Application for a Tavern liquor license filed by EP Resorts, Inc., dba Marys Lake Lodge. April 2003 PROCEDURE FOR TRANSFER OF LIQUOR LICENSE TOWN CLERK. Will present the application and confirm the following: 5 The application was filed September 28, 2012 . 5 The Town has received all necessary fees and hearing costs. 5 The applicant is filing as a Corporation . 5 There is a police report with regard to the investigation of the applicants. 5 Status of T.I.P.S. Training: Unscheduled X Completed Pending Confirmation MOTION: I move the Transfer Application filed by EP Resorts, Inc. doing business as Marys Lake Lodge for a Tavern License be approved/denied. Page 1 FINANCE Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Steve McFarland – Finance Officer Date: December 11th, 2012 RE: Third Quarter Financial Report Background: Attached is the 3rd Quarter Sales Tax and Financial report for 2012. The sales tax information includes January – September, 2012, while the financial data is provided through October 2012. The Financial Indicator slide provides information in four key areas: • General Fund: Due to timing (September sales tax data received after closing of October books), sales tax is only reported through August 2012 in this section. “Other” revenues of $1,373,960 include licenses & permits ($457k), intergovernmental ($368k), interest/rents ($171k), and charges for services ($105k). Major expenditure categories are all well within budgeted parameters (78% of budget expended with 83% of year completed). Public Works is at 85% of budget because of the Virginia Drive capital project. “Transfers Out” are slightly higher than budget because 100% the Medical Fund transfer was made in January, in order to “seed” the Fund. • Sales Tax: Sales tax for the first 3 quarters of 2012 is 6.8% ahead of budget, and 5.9% ahead of 2011. September (up 8.9% over September 2011) was a nice rebound after an average July/August. • Enterprise (Utility) Funds: In aggregate, utility revenues are on target with budget. Specifically, L&P revenues have been disappointing, whereas Water revenues have been stellar. Perhaps this is the flip side of strong sales tax revenues. With the warm weather, sales tax collections are on record pace – however, warm weather is not so friendly to electric revenues, as demand was below expectations for the first three quarters. Expenditures (77%) are well within budgeted parameters. Page 2 FINANCE Memo • Investments: A municipality’s investment universe is limited to interest-rate sensitive instruments, including money markets, CDs, US Treasuries and US Instrumentalities. The drop in interest rates from 2008 (~4.75%) to today (~ 0.25%) has caused over $750,000 in returns to evaporate, subsequently affecting every Town fund. Recent legislation (HB 12-1005) has allowed municipalities to again invest in government-backed securities that were prohibited when the ratings agencies downgraded the US Government in 2010. The Town took advantage of this, and is now positioned in accordance with recommendations from our investment advisors. Our investment strategy is to keep duration (length of investment) on a very short leash – the Town does not want to be caught disproportionately in long positions should interest rates increase significantly. Investment levels usually reach their high-water mark in September, corresponding to receipt of July sales tax. Pertinent information included in the sales tax slides include: • Compared to other CAST communities, Estes Park’s year over year (2012 v 2011) increase for January – September is very competitive with other mountain communities. As can be seen, collection of data varies by Town, so this is not exactly an apples – apples comparison, but it is very encouraging. • The “Sales Tax Rate of Change” slide show that on a 12-month moving average, sales tax is now at a record level of $648,571/month ($7,782,848/year). This is on target with the revised sales tax budget of $7,800,000, and exceeds the original 2012 budget by approximately $465,000. The above information references the top blue line, which ties to the left vertical axis. The lower maroon line, connected with the right vertical axis, shows that sales tax is currently increasing at an annual pace of nearly 5.1% (the July/August malaise reduced the rate of increase from over 10%). For almost a year (August 2009 – August 2010), sales tax was actually experiencing negative growth, so the current numbers are most encouraging. • The “Sales Tax Comparison: 2010-12” slide provides detailed information about each of the Town’s major sales tax sectors for the first half of the past 3 years. Food and lodging (66% of the sales tax total) are up a combined 17% over the past two years. Construction is also up 20% over the past two years, which would offer encouragement that the sales tax gains are broad-based, and reflect increased activity in many areas of the Estes Park economy. Page 3 FINANCE Memo Concluding/Other thoughts Staff will provide a complete 2012 financial report at the end of February/beginning of March. Budget: N/A Staff Recommendation: N/A Sample Motion: N/A Update:Update:  Financial and Sales Tax Report (through October 2012) S ld i OffiSteve McFarland –Finance Officer FINANCIAL INDICATORSFINANCIAL INDICATORS TOWN OF ESTES PARK – THROUGH OCT 31st, 2012 TOWN  OF ESTES PARK 2012 2012 % of 2012 2012 % of Year ‐to ‐Date Budget Variance Budget Year ‐to ‐Date Budget Variance Budget   % of year  elapsed> 83%  % of year  elapsed> 83% REVENUES REVENUES ENTERPRISE FUNDS  (L&P/WATER)GENERAL  FUND Through   October  31, 2012 REVENUES REVENUES   Taxes  (sales, ptax, f fees) $6,254,833 $8,356,212 ($2,101,379)74.9%  Utility Sales $13,361,271 $16,189,428 ($2,828,157)82.5%   Other 1,373,960 1,822,765 (448,805)75.4%  Fees/services 381,093 319,000 62,093 119.5%   Transfers  from  Enterprise 994,190 1,233,322 (239,132)80.6%  Other 271,931 276,290 (4,359)98.4% TOTAL REVENUES 8,622,983 11,412,299 (2,789,316)75.6% 14,014,295 16,784,718 (2,770,423)83.5% EXPENSES EXPENSES   General  Government 2,534,928 3,291,912 756,984 77.0%  Source of Supply 5,019,725 6,577,948 1,558,223 76.3% Public Safety 2 443 881 3 423 385 979 504 71 4%Purification 482 513 662 255 179 742 72 9%  Public  Safety 2 ,443 ,881 3 ,423 ,385 979 ,504 71 .4% Purification 482 ,513 662 ,255 179 ,742 72 .9%   Public  Works 1,815,047 2,130,332 315,285 85.2%  Distribution 2,460,276 3,073,266 612,990 80.1%   Culture‐Recreation 727,073 979,979 252,906 74.2%  Customer  Accounts 636,600 897,623 261,023 70.9%   Interfund Transfers  Out 1,894,031 2,252,364 358,333 84.1%  Admin/General 1,780,672 2,332,210 551,538 76.4%   Interfund Transfers  Out 1,057,106 1,296,238 239,132 81.6%   Debt Service 854,999 854,999 0 100.0%   Capital 1,170,177 1,833,300 663,123 63.8% TOTAL EXPENSES 9,414,960 12,077,972 2,663,012 78.0% TOTAL EXPENSES 13,462,068 17,527,839 4,065,771 76.8% NET  INCREASE/DECREASE ($791,977) ($665,673) ($126,304)NET  INCREASE/DECREASE $552,227 ($743,121)$1,295,348 *includes  sales ‐related  taxes  through  August'12 SALES  TAX 1st‐2nd Qs 3rd  QTotalINVESTMENTS  (Fair  value)Aug ‐12 Sep‐12 Oct‐12   Town  Funds 2012  Budget 2,663,519 3,346,933 6,010,452 Money markets/CDs 14,001,770 14,562,942 14,754,845 2012 2,959,047 3,459,741 6,418,788 U.S. Treasuries 2,859,488 2,857,449 2,851,984 l2011 2,607,594 3,450,883 6,058,477 U.S. Instrumenta l ities 5,529,266 5,527,075 5,525,430 2010 2,479,795 3,178,427 5,658,222   Total 22,390,524 22,947,466 23,132,258      FOSH/Theater  Fund 457,774 457,844 457,913 2012  vs  budget 11.1% 3.4% 6.8%  2012  data  thru  10/31/12:  DJIA +7.2%, S&P500  +12.3%, NASDAQ  +14.3% 2012  vs  2011 13.5% 0.3% 5.9%  annual  pooled  govt mm  rate:  10/31/12  = 0.26%; 0.15% locally. SALES TAX FACTS •Jan‐Sep 2012 complete. •75% of calendar year; ~82% of fiscal year. •5.9% ahead of Jan‐Sep 2011. •6.8% ahead of original 2012 budget ($7.3m). •19 CAST communities currently reporting, Estes Park still holding its own,despite 3%g ,p decrease in Jul/Aug. CAST COMMUNITIES 8.6% 8.6% 60%59% 6.3% 7.7% 6.4% 8.0% 10.0%2012  v  2011   2.8% 4.2% 4.9% 6 .0%5 .9% 3.4% 3.9% 5.2% 2.0% 3.4%3.3%4.0% 6.0% ‐0.8% 0% 0.0% 2.0% ‐1.5% 60% ‐4.0% ‐2.0% ‐6.4% ‐8.0% ‐6 .0% SALES TAX RATE OF CHANGE 10% 15% 20% $600,000 $700,000 $648,571 $7,782,848 2011 = $7.42M '2012B = $7.32MSeptember-12 12 Mo Rev. 0% 5% 10% $ $400,000 $500,000 g o f A v e R e v . me 15% -10% -5% $100 000 $200,000 $300,000 12 M o % C h g In c o m 5.07% 12 Mo. ROC =September-12 -20% -15% $0 $100 ,000 12 Mo Ave 12 mo % SALES TAX COMPARISONS: 2010‐12 TOWN OF ESTES PARKTOWN OF ESTES PARK 2012 SALES TAX CLASSIFICATION BREAKDOWN Prior Prd Prior Prd 2012 2011 2012 2010 2012 BRIEF TOTAL % of Jan‐Sep vs. Jan‐Sep vs. DESCRIPTION YEAR Total YEAR 2011 YEAR 2010 AMUSEMENTS/RECREATION 46,295.50 1% 48,665.44 ‐5% 36,436.03 27% AUTOMOTIVE 115,856.81 2% 108,196.74 7% 115,495.33 0% FOOD 2,410,512.82 38% 2,332,415.09 3% 2,104,459.07 15% RETAIL 1,203,915.74 19% 1,180,465.48 2% 1,129,036.93 7% LODGING 1,809,058.35 28%1,608,027.53 13%1,503,194.84 20%LODGING 1,809,058.35 28%1,608,027.53 13%1,503,194.84 20% CONSTRUCTION 319,281.09 5% 275,340.78 16% 265,489.17 20% PERSONAL/PROFESSIONAL 107,076.41 2% 84,989.17 26% 82,397.40 30% UTILITIES 406,791.82 6% 420,376.73 ‐3% 421,712.97 ‐4% GRAND TOTAL 6,418,788.54 100% 6,058,476.96 6% 5,658,221.74 13% Community Development Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Dave Shirk, Planner Date: December 11, 2012 RE: PRELIMINARY AND FINAL SUBDIVISION PLATS, Wonderview Village Townhomes (FKA Wonderview Village Condominiums), 141 Willowstone Drive; Steve Murphree/Applicant Background: This is a request for a preliminary and final townhouse subdivision plat for an approved development plan/condominium subdivision. The property is currently developed with four units, with an additional 13 approved. No additional development approval is requested. This subdivision plat would replace an existing condominium association with a townhome association. Both ownership types are governed by the Colorado Common Interest Ownership Act. Budget: N/A Planning Commission Recommendation: On Tuesday November 20 2012, the Estes Valley Planning Commission held a public hearing to discuss the Wonderview Village Preliminary and Final Townhome Subdivision Plats. At that time, the Planning Commission found: 1. This proposal complies with applicable sections of the Estes Valley Development Code, including Section 3.9.E “Standards for Review” and 10.3 “Review Procedures.” 2. Per Section 10.5.K.1, sidewalk and district buffer landscaping shall either be installed or guaranteed prior to recordation of plat. 3. This request has been submitted to reviewing agency staff for consideration and comment. No significant issues or concerns were expressed by reviewing staff relative to code compliance or the provision of public services. 4. Within sixty (60) days of the Board’s approval of the amended plat, the developer shall submit the plat for recording. If the plat is not submitted for recording within this sixty-day time period, the approval shall automatically lapse and be null and void. 5. This is a Planning Commission recommendation the Town Board. The Planning Commission voted unanimously (6-0, one absent) to recommend APPROVAL of the proposed Wonderview Village Preliminary and Final Townhome Subdivision Plats CONDITIONAL TO: 1. The final plat shall account for the revised sewer easement, as referenced in memo from EPSD dated Oct. 9 2012. 2. Compliance with memo from Public Works dated October 29, 2012. 3. Preliminary construction plans for the sidewalk shall be submitted prior to final plat approval. Sample Motion: I move for the approval (or disapproval) of the proposed Wonderview Village Preliminary and Final Townhome Subdivision Plats subject to the findings and conditions recommended by the Planning Commisison. To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Estes Park Tree Board Date: December 11, 2012 RE: Tree Board Appointment – Celine Lebeau and Apryle Craig Background: Currently the Estes Park Tree Board has two vacancies due the departure from the board of members Sandy Burns and Mike Richardson, whose terms recently expired. A panel of Estes Park Tree Board members and staff interviewed Celine Lebeau and Apryle Craig for the open positions and were impressed with both candidates’ background and qualifications. Celine Lebeau graduated from the University of Colorado - Boulder in Environmental, Population and Organismic Biology and works at Van Horn Engineering. Apryle Craig has a BS in Bioengineering and is pursuing her Masters in Ecology from CU while working part time for the National Park. Both candidates have a great interest in Estes Park Tree Board activities and look forward to volunteering for the Estes Park Tree Board. Budget: N/A Staff Recommendation: The Estes Park Tree Board recommends the appointment of Celine Lebeau to the Estes Park Tree Board, with a term expiring December 11, 2016. The Estes Park Tree Board also recommends the appointment of Apryle Craig to the Estes Park Tree Board, with a term expiring December 11, 2016. Sample Motion: I move for the approval/denial of the appointment of Celine Lebeau to the Estes Park Tree Board, with a term expiring December 11, 2016. In addition, I move for the approval/denial of the appointment of Apryle Craig to the Estes Park Tree Board, with a term expiring December 11, 2016. PARKS DEPARTMENT Memo Page 1 POLICE DEPARTMENT Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Wes Kufeld, Chief of Police Date: December 11, 2012 RE: Park R-3 School District School Resource Officer Agreement 2012-2013 Background: The Police Department has provided School Resource Officer (SRO) services to the Park School District R-3 since 2005. Beginning the 2009 /2010 school year, the district agreed to and has paid $20,000.00 each school year. This revenue was utilized to offset overtime costs associated with the SRO position. In 2010, the Staff of Park R-3 School approached The Town Board to request the town’s assistance in allowing the School Resource Officer to continue without funding from the school. The Town also received a letter of request from Park School District formally asking for the $20,000.00 fee to be waived and to continue the needed SRO services which was waived. The schedule of the School Resource Officer was adjusted to being in the schools 3 days a week. Recently, for the current school year (2012-2013) the School District has agreed to fund this position with this new MOU. Superintendent Hickey has already signed the agreement. The District has agreed to fund the full $20,000.00 for the school year. Thus the School Resource Officer will be back in the schools on a fulltime basis. Budget: Revenue of $20,000.00 from the School District will go to help offset the cost of a fulltime police officer in the schools. Recommendation: Staff recommends the approval of the School Resource Officer Agreement. Motion I move to approve / deny the School Resource Officer agreement between the Town and the School District for the 2012 /2013 school year. AGREEMENT This AGREEMENT (“Agreement”), made and entered into the 11th day of December, 2012, for the 2012 -2013 school year, by and between: ESTES PARK SCHOOL DISTRICT R-3 (hereinafter referred to as “DISTRICT”) AND TOWN OF ESTES PARK (hereinafter referred to as “TOWN”) WITNESSETH: WHEREAS, the DISTRICT desires the TOWN to have a police officer serve as a School Resource Officer in all of its schools to assist in maintaining safe school environments, to improve school law enforcement collaboration, and to improve perceptions and relations between students, staff and law enforcement officials. WHEREAS, the DISTRICT and the TOWN both recognize the outstanding benefits that the School Resource Officer program has for the citizens of Estes Park and particularly for the students attending the DISTRICT’S schools. The parties agree that it is in the best interests of the DISTRICT, The TOWN, and the citizens of the community to continue the program as set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: SECTION 1. DUTIES AND RESPONSIBILITIES OF THE TOWN 1.01 TOWN shall provide; for the 2012 – 2013 school year, one (1) School Resource Officer (hereinafter referred to as SRO) to the school campus operated by the DISTRICT 40 hours per week or (5) school days per week, when school is in session: Estes Park R-3 Elementary 1505 Brodie Avenue Estes Park, Colorado 80517 Estes Park R-3 Middle School 1500 Manford Avenue Estes Park, Colorado 80517 Estes Park R-3 High School 1600 Manford Avenue Estes Park, Colorado 80517 1.02 The SRO shall abide by DISTRICT Policies, regulations, and TOWN Policies, rules and regulations. 1.03 TOWN shall be responsible for the supervision, control, and direction of all aspects of employment of the police officer assigned to the SRO Program. However, the TOWN shall solicit input from the principals and Superintendent each year for evaluation and program effectiveness of the SRO program. 1.04 TOWN shall ensure that the exercise of the law enforcement powers by the SRO is in compliance with the authority granted by law. 1.05 The SRO shall not function as a school disciplinarian or security officer, and shall not intervene in the normal disciplinary actions of the school system, nor be used to witness any disciplinary procedures in the school. The SRO, at all times, will be expected to act within the scope of authority granted by law as a police officer and shall be expected to the following: (a) To perform daily law enforcement functions within the school setting. (b) To respond to emergency situations for the protection of students and staff consistent with the SRO’s responsibility. (c) To identify and mitigate, through counseling and referral, delinquent behavior, including substance abuse. (d) To foster a better understanding of the law enforcement function. (e) To develop positive concepts of law enforcement. (f) To develop a better appreciation of citizen rights, obligations and responsibilities. (g) To provide information about crime prevention. (h) To provide assistance and support for crime victims identified within the school setting, including abused children. (i) To promote positive relations between students and law enforcement officers. (j) To enhance knowledge of the fundamental concept and structure of law. (k) To provide to students instruction in various aspects of law enforcement and education, emphasizing an educational component for students concerning policing practices and enforcement initiatives related to juvenile behavior. The SRO shall consult and coordinate instructional activities through the school principals. (l) To participate each year with career activities held by the schools. (m) To meet, when requested, with the Superintendent or her/his designee for the purpose of reviewing the educational needs of the schools relating to the SRO. (n) To provide information and reports allowed and required by Colorado law to the Superintendent or her/his designee relating to enrolled students within the Estes Park R-3 School District and as it pertains to the Attorney Generals Order - Information sharing. (o) To support specific administrative actions taken by the building administrators and the Superintendent in maintaining a drug free school environment, such as locker and parking lot searches and to provide supportive resources (i.e. drug dogs) only when asked by the Superintendent of schools. (p) The SRO may, when requested, work closely with the schools primary emergency service provider for the coordination and planning of all crisis situations that potentially affect campus safety. (q) The TOWN shall ensure the SRO receives annual and updated training relevant to providing police services within the school environment. 1.06 Qualifications for officer assignment to the SRO program are: (a) The applicant must be a full-time peace officer, level 1 with full police authority as defined by C.R.S. §18-1-901(3)(1)(I), with a minimum of two (2) years of law enforcement experience. (b) Shall possess a sufficient knowledge of the applicable Federal and State laws. City and County ordinances, and Estes Park School District policies and regulations. (c) Shall have access to police resources to conduct criminal investigations. (d) Shall possess even temperament and set a good example for students. (e) Shall possess communication skills that would enable the officer to function effectively within the school environment. 1.07 The TOWN reserves the right to change the officer assigned to SRO duties during the course of the agreement. 1.08 The SRO shall be on duty at the school 40 hours per week or (5) school days per week, as determined by and at the sole discretion of the town, during regular school hours when students are required to attend, subject to the absence of the SRO for police department emergency needs, training needs or law enforcement requirements prohibit. A monthly schedule will be created and provided to building and district administration, outlining the days and hours that the SRO will be present. If absence must occur during these scheduled days, due to vacation or sick time, the SRO or department will notify the Administrative Assistant of the Superintendant, of the SRO’s absence. Patrol Officers, while performing their regular patrol duties, will respond to calls for service, perform extra checks and walkthroughs and or offer support in the absence of the SRO. During non-scheduled days, district personnel will contact dispatch for police services. The TOWN reserves the right to amend this commitment if staffing levels dictate that they do so. SECTION 2. DUTIES AND RESPONSIBLITIES OF DISTRICT 2.01 The principal or his/her designee at the designated school shall be the on-site contact person for the SRO and shall be responsible for communicating the day-to-day need of service from the SRO. The Superintendent shall ensure the SRO Program supports meeting the mission and vision of the DISTRICT within the school district. The Superintendent of Schools shall assign a designee to serve as the district liaison for the program. 2.02 The DISTRICT agrees to provide the SRO an office to conduct matters of confidentiality with a desk, necessary office furnishings and a telephone. 2.03 The DISTRICT shall maintain control over the content of all educational programs and instructional materials. 2.04 SRO’s shall have access to educational records under the following conditions: (a) Law enforcement access to educational records shall be in compliance with all applicable laws and regulations as it pertains to the Attorney Generals Order relating to information sharing. (b) The SRO shall have access to confidential educational records to perform work that is directly related to their duties at the school. (c) Law Enforcement access to records for purposes outside the scope of the SRO’s duties at the school shall be limited to: (1) Public information, such as yearbooks or student directory information (2) Information needed in an emergency to protect the health or safety of the student or other individuals, based on the seriousness of the threat to someone's health or safety; the need of the information to meet the emergency situation and the extent to which time is of the essence. (3) If confidential student records information is needed, but no emergency situation exists, the information, depending on the situation, may be released by the school Principal or Superintendent. Otherwise, the records will be made available by the issuance of a search warrant or subpoena. . (d) Law Enforcement records shall be made available by the Police Department to the Principal, Superintendant or designee, as described and in accordance to the Attorney Generals Order pertaining to information sharing. SECTION 3 FINANCIAL SUPPORT OF SRO POSITION 3.01 This agreement shall be made for the duration of school each year, beginning the first day of student attendance through the last day of student attendance. 3.02 This agreement shall continue in effect until the duration of the term described in paragraph 3.01 or until terminated by either of the parties in accordance with the terms listed in Section 4 below. 3.03 The DISTRICT has agreed to pay $20,000 to help cover a portion of the cost of the SRO position in the Schools for the contracted period. SECTION 4. TERMINATION 4.01 Either party may terminate this agreement by serving written notice upon the other party at least thirty (30) days in advance of such termination. SECTION 5. INVALID PROVISION 5.01 Should any part of this Agreement be declared invalid by a court of law, such decision shall not affect the validity of any remaining portion which shall remain in full force and effect as if the invalid portion was never a part of this Agreement when it was executed. Should the severance of any part of this Agreement materially affect any other rights or obligations of the parties hereunder, the parties hereto will negotiate in good faith to amend this Agreement in a manner satisfactory to the parties. Failing agreement on such amendment, either party may by notice in writing, terminate this Agreement forthwith subject to the provisions of this Agreement relating to termination. SECTION 6. INDEMNIFICATION 6.01 The DISTRICT agrees to indemnify and save harmless the TOWN for any liability whatsoever arising out of the negligent acts of the DISTRICT’s employees or agents. The TOWN agrees to indemnify and save harmless the DISTRICT of any liability whatsoever arising out of the negligent acts of the School Resource Officer or the TOWN. Nothing in this Agreement shall be construed to affect in any way the TOWN or the DISTRICT’s rights, privileges, and immunities, including sovereign immunity as provided by law. The parties hereto understand and agree that the DISTRICT, the TOWN, and their officers and employees are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. 24-10-101 et seq., as from time-to-time amended, or otherwise available by other provision of law to either party, their officers, or their employees. SECTION 7. ASSIGNMENT 7.01 Neither party to the Agreement shall, directly or indirectly, assign or purport to assign this Agreement or any of its rights or obligations in whole or in part to any third party without the prior written consent of the other party. SECTION 8. NO WAIVER 8.01 The failure of either party to enforce at any time any of the provisions, rights, or to exercise any elections provided, shall in no way be considered to be a waiver of such provisions, rights or elections or in any way effect the validity of the Agreement. The failure to exercise by either party any of its rights herein or any of its elections under the terms or conditions herein contained shall not preclude or prejudice it from exercising the same or any other right it may have under this Agreement, irrespective of any previous action or proceeding taken by it hereunder. SECTION 9. COMPLETE AGREEMENT 9.01 This Agreement is the complete Agreement of the parties; may be amended or modified only in writing; and supersedes, cancels and terminates any and all prior agreements or understandings of the parties, whether written or oral, concerning the subject matter hereof. SECTION 10. CHOICE OF LAW 10.01 This Agreement shall be governed by and construed and interpreted according to the laws of the State of Colorado. It shall be binding upon and inure to the benefit of the successors of the TOWN and DISTRICT. SECTION 11. NON-DISCRIMINATION PROVISION 11.01 The parties shall not discriminate against any employee or participant in this program because of race, age, religion, color, gender, national origin, martial status, disability, or sexual orientation. SECTION 12. NOTICE PROVISIONS 12.01 When any of the parties desire to give notice to the other, such notice must be in writing sent by US Mail, postage prepaid, addressed to the party for whom it is intended at the place last specified; the place for giving notice shall remain such until it is changed by written notice in compliance with the provisions of the paragraph. For the present, the parties designate the following as the respective places for giving notices: To DISTRICT: Superintendent of Schools Park School District 1601 Brodie Avenue Estes Park, Colorado 80517 To TOWN: Town Administrator Town of Estes Park P.O. Box 1200 Estes Park, Colorado 80517 AUTHORITY PROVISION Each person signing this Agreement on behalf of either party individually warrants that he/she has full legal power to execute this agreement on behalf of the party for whom he/she is signing, and to bind and obligate such party with respect to all provisions contained in this Agreement. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first written above. PARK SCHOOL DISTRICT R-3 By_________________________ Patrick Hickey Superintendent of Schools Date: TOWN OF ESTES PARK By__________________________ William C. Pinkham Mayor Town of Estes Park Date: ATTEST: ______________________________ Jackie Williamson, Town Clerk Page 1 Town Attorney Memo To: Honorable Mayor Pinkham Board of Trustees From: Gregory A. White, Town Attorney Date: December 3, 2012 RE: Resolution No. 18-12 Cable Television Agreement - Baja Background: Baja Broadband Operating Company, LLC is the current Grantee under the Cable Television Permit Agreement dated July 27, 1993, as amended. Baja and Town representatives have negotiated a new proposed Cable Television Agreement. The current Cable Television Permit Agreement terminates December 14, 2012. A summary of the terms and conditions of the proposed Cable Television Agreement is as follows: 1. Term. The term is ten years. 2. Agreement Fee. The agreement fee is five percent (5%) of Grantee’s gross revenues. This agreement fee is the same as the past Cable Television Permit Agreement and the maximum allowed by federal law. 3. Grant. The Town grants to Baja a non-exclusive right to make reasonable and lawful use of the Town’s rights-of-way within the Town boundary to construct, operate and maintain its cable system. 4. Indemnification and Insurance. Baja indemnifies and holds the Town harmless for claims, actions, and injuries as more fully set forth in the Agreement. Baja is required to maintain insurance for its activities as set forth in the Agreement. 5. Customer Service Standards. Exhibit 1 of the Agreement provides for customer service standards for Baja’s cable system within the Town. 6. Educational and Government Access Channels. Baja is required to provide, at no cost to the Town, one channel for educational and government access. 7. Construction standards. The Agreement contains appropriate standards for construction and location of Baja facilities within the Town including restoration of the surface and maintenance of its facilities. 8. Undergrounding of cable. The Agreement contains provisions requiring Baja to install its wiring underground when electric and telephone utility wiring are also underground at Baja’s expense unless otherwise allowed by applicable law. 9. Emergency Alert Capability. The Agreement requires Baja to provide equipment and access for an emergency alert system in compliance with FCC standards. The Town is responsible for the monthly cost of the phone line which has been estimated by Baja to be $20 - $50 per month. Budget: Revenue to the Town from the 5% Agreement fee will be substantially the same as the current revenue received by the Town. Staff Recommendation: The Town retained River Oaks Communications Corporation to represent the Town in the negotiations of this new Cable Television Agreement. River Oaks Communications has stated to Town Staff that this new Cable Television Agreement is a modern and favorable Agreement for a community the size of Estes Park taking into account the costs of Baja and has recommended that the Town Board approve this new Cable Television Agreement. Based upon River Oaks Communications’ recommendation and Town Staff experience with Baja, Staff recommends approval of Resolution No. 18-12. Sample Motion: I move to approve/deny Resolution No. 18-12. RESOLUTION NO. 18-12 APPROVING A NEW CABLE TELEVISION AGREEMENT WHEREAS, Baja Broadband Operating Company, LLC (“Baja”) is the current Franchisee pursuant to the terms and conditions of the Cable Television Permit Agreement dated July 27, 1993 including amendments which extend the Permit Agreement to December 14, 2012; and WHEREAS, representatives of the Town and Baja have negotiated a new Cable Television Agreement which, if approved, would be for a ten year period effective December 14, 2012; and WHEREAS, the Board of Trustees has reviewed the proposed Cable Television Agreement with Baja and has determined that it is in the best interest of the Town and its citizens to approve the Cable Television Agreement with Baja as submitted. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK as follows: 1. The Board of Trustees hereby approves the Cable Television Agreement with Baja Broadband Operating Company, LLC as more fully set forth on Exhibit A, attached hereto and incorporated herein by reference. 2. The appropriate officials of the Town of Estes Park are hereby authorized to execute the Cable Television Agreement. PASSED AND ADOPTED at a regular meeting this ____ day of ____________, 2012. Mayor ATTEST: Jackie Williamson, Town Clerk TOWN OF ESTES PARK, COLORADO CABLE TELEVISION AGREEMENT December 4, 2012 i TABLE OF CONTENTS SECTION 1. DEFINITIONS ................................................................................................................. 1 “Access or Access Programming” ............................................................................................................. 2 “Access Channel” ...................................................................................................................................... 2 “Access Fees” ............................................................................................................................................ 2 “Activation” or “Activated” ...................................................................................................................... 2 “Affiliated Entity” or “Affiliate” ............................................................................................................... 2 “Agreement” .............................................................................................................................................. 2 “Agreement Area” ..................................................................................................................................... 2 “Agreement Fee” ....................................................................................................................................... 2 “Bad Debt” ................................................................................................................................................ 3 “Basic Service” .......................................................................................................................................... 3 “Broadcast Signal” .................................................................................................................................... 3 “Cable Act” ............................................................................................................................................... 3 “Cable Operator” ....................................................................................................................................... 3 “Cable Service” ......................................................................................................................................... 3 “Channel” .................................................................................................................................................. 3 “Town” or “Grantor” ................................................................................................................................. 3 “Designated Access Provider” .................................................................................................................. 3 “Downstream Channel” ............................................................................................................................. 3 “Dwelling Unit” ......................................................................................................................................... 4 “Expanded Basic Service” ......................................................................................................................... 4 “FCC” ........................................................................................................................................................ 4 “Fiber Optic” ............................................................................................................................................. 4 “GAAP” .................................................................................................................................................... 4 “Generally Applicable” ............................................................................................................................ 4 “Gross Revenues” ...................................................................................................................................... 4 “Headend” or “Hub” .................................................................................................................................. 5 “Interconnect” or “Interconnection” ......................................................................................................... 5 “Leased Access Channel” ......................................................................................................................... 5 “Locally Scheduled Original Programming” ........................................................................................... 5 “Noncommercial” ...................................................................................................................................... 5 “Normal Business Hours” ......................................................................................................................... 5 “Normal Operating Conditions” ................................................................................................................ 5 “Pay Service” or “Premium Service” ........................................................................................................ 6 “Person” ..................................................................................................................................................... 6 “Residential Subscriber” ........................................................................................................................... 6 “Rights-of-Way” ........................................................................................................................................ 6 “School” .................................................................................................................................................... 6 “Service Interruption” ............................................................................................................................... 6 “State” ........................................................................................................................................................ 6 “Subscriber” or “Customer” ...................................................................................................................... 6 “System” or “Cable System” ..................................................................................................................... 6 “Tier” ......................................................................................................................................................... 7 “Video Programming” ............................................................................................................................... 7 ii SECTION 2. GRANT OF AGREEMENT ........................................................................................... 7 2.1 Grant .............................................................................................................................................. 7 2.2 Use of Rights-of-Way .................................................................................................................... 8 2.3 Duration ......................................................................................................................................... 8 2.4 Effective Date ................................................................................................................................ 9 2.5 Agreement Nonexclusive .............................................................................................................. 9 2.6 Grant of Other Agreements ........................................................................................................... 9 2.7 Familiarity with Agreement .......................................................................................................... 9 2.8 Effect of Acceptance ................................................................................................................... 10 2.9 Police Powers .............................................................................................................................. 10 SECTION 3. AGREEMENT FEE AND FINANCIAL CONTROLS.............................................. 10 3.1 Agreement Fee ............................................................................................................................. 10 3.2 Payments ...................................................................................................................................... 10 3.3 Acceptance of Payment ............................................................................................................... 10 3.4 Quarterly Agreement Fee Reports ............................................................................................... 10 3.5 Audits .......................................................................................................................................... 11 3.6 Financial Records ........................................................................................................................ 11 3.7 Interest on Late Payments ........................................................................................................... 11 3.8 Additional Commitments Not Agreement Fees .......................................................................... 11 3.9 Payment on Termination ............................................................................................................. 12 3.10 Bundling ...................................................................................................................................... 12 3.11 Tax Liability ................................................................................................................................ 12 SECTION 4. ADMINISTRATION AND REGULATION ............................................................... 13 4.1 No Rate Discrimination ............................................................................................................... 13 4.2 Filing of Rates and Charges ........................................................................................................ 13 4.3 Performance Evaluation .............................................................................................................. 14 4.4 Leased Access Channel Rates ..................................................................................................... 14 4.5 Late Fees ...................................................................................................................................... 14 SECTION 5. FINANCIAL AND INSURANCE REQUIREMENTS .............................................. 14 5.1 Indemnification ............................................................................................................................ 14 5.2 Insurance Requirements .............................................................................................................. 16 5.3 Security ........................................................................................................................................ 17 SECTION 6. CUSTOMER SERVICE ............................................................................................... 18 6.1 Customer Service Standards ........................................................................................................ 18 6.2 Subscriber Privacy ....................................................................................................................... 18 6.3 Customer Service Location(s) ..................................................................................................... 18 6.4 Customer Service Agreement and Manual .................................................................................. 19 SECTION 7. REPORTS AND RECORDS ........................................................................................ 19 7.1 Records ........................................................................................................................................ 19 7.2 Confidentiality ............................................................................................................................. 19 7.3 Records Required ........................................................................................................................ 20 7.4 Copies of Federal and State Reports ........................................................................................... 20 iii 7.5 Complaint File and Reports ......................................................................................................... 20 7.6 Inspection of Facilities and Annual Meeting .............................................................................. 21 7.7 False Statements .......................................................................................................................... 21 SECTION 8. PROGRAMMING ......................................................................................................... 21 8.1 Broad Programming Categories .................................................................................................. 21 8.2 Deletion of Broad Programming Categories ............................................................................... 21 8.3 Obscenity ..................................................................................................................................... 21 8.4 Services for the Disabled ............................................................................................................. 21 8.5 Parental Control Device .............................................................................................................. 22 8.6 Complementary Cable Service .................................................................................................... 22 SECTION 9. EDUCATIONAL AND GOVERNMENTAL ACCESS ............................................. 23 9.1 Access Channels .......................................................................................................................... 23 9.2 Triggers for Additional Access Channels ................................................................................... 23 9.3 Management and Control of Access Channels ............................................................................ 23 9.4 Underutilized Access Channels ................................................................................................... 24 9.5 Access Channel Identification/Location/Relocation ................................................................... 24 9.6 Access Interconnections .............................................................................................................. 24 9.7 Support for Coverage of Governmental and Educational Programming .................................... 25 9.8 Access Channels On Lowest Tier ................................................................................................ 25 9.9 Technical Quality ........................................................................................................................ 25 9.10 Return Lines ................................................................................................................................ 26 SECTION 10. GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION ............................... 26 10.1 Construction ................................................................................................................................ 26 10.2 Location of Facilities ................................................................................................................... 27 10.3 Restoration of Rights-of-Way ..................................................................................................... 27 10.4 Maintenance and Workmanship .................................................................................................. 27 10.5 Acquisition of Facilities .............................................................................................................. 28 10.6 Reservation of Rights-of-Way ..................................................................................................... 28 10.7 Rights-of-Way Vacation .............................................................................................................. 29 10.8 Removal of Discontinued Facilities ............................................................................................ 29 10.9 Hazardous Substances ................................................................................................................. 30 10.10 Undergrounding of Cable ............................................................................................................ 30 10.11 Codes ........................................................................................................................................... 31 10.12 Construction and Use of Poles .................................................................................................... 31 10.13 Tree Trimming ............................................................................................................................. 32 10.14 Standards ..................................................................................................................................... 32 10.15 Stop Work .................................................................................................................................... 32 10.16 Work of Contractors and Subcontractors .................................................................................... 33 10.17 Safety ........................................................................................................................................... 33 10.18 Joint Trenching/Boring ................................................................................................................ 33 10.19 GIS Mapping ............................................................................................................................... 33 SECTION 11. SYSTEM DESIGN ...................................................................................................... 33 iv SECTION 12. TECHNICAL STANDARDS ...................................................................................... 34 12.1 Technical Performance ................................................................................................................ 34 12.2 Inspection of Construction .......................................................................................................... 34 12.3 Cable System Performance Testing ............................................................................................. 34 12.4 Additional Tests........................................................................................................................... 35 SECTION 13. SERVICE EXTENSION ............................................................................................. 35 13.1 Service Availability ..................................................................................................................... 35 SECTION 14. STANDBY POWER AND EMERGENCY ALERT SYSTEM ............................... 36 14.1 Standby Power ............................................................................................................................. 36 14.2 Emergency Alert Capability ........................................................................................................ 37 SECTION 15. AGREEMENT BREACHES; TERMINATION OF AGREEMENT .................... 37 15.1 Procedure for Remedying Agreement Violations ....................................................................... 37 15.2 Alternative Remedies .................................................................................................................. 38 15.3 Assessment of Monetary Damages and Letter of Credit ............................................................. 39 15.4 Revocation ................................................................................................................................... 41 15.5 Removal ....................................................................................................................................... 43 SECTION 16. ABANDONMENT ....................................................................................................... 43 SECTION 17. AGREEMENT RENEWAL ....................................................................................... 43 SECTION 18. AGREEMENT TRANSFER ...................................................................................... 44 SECTION 19. PROHIBITED PRACTICES AND NOTICES .......................................................... 45 19.1 Preferential or Discriminatory Practices Prohibited ..................................................................... 46 19.2 Notices ........................................................................................................................................ 460 SECTION 20. MISCELLANEOUS PROVISIONS .......................................................................... 46 20.1 Cumulative Rights ....................................................................................................................... 46 20.2 Costs to be Borne by Grantee ...................................................................................................... 47 20.3 Binding Effect ............................................................................................................................. 47 20.4 Authority to Amend ..................................................................................................................... 47 20.5 Venue ........................................................................................................................................... 47 20.6 Governing Laws .......................................................................................................................... 47 20.7 Captions ....................................................................................................................................... 47 20.8 No Joint Venture .......................................................................................................................... 47 20.9 Waiver ......................................................................................................................................... 47 20.10 Severability .................................................................................................................................. 48 20.11 Force Majeure .............................................................................................................................. 48 20.12 Entire Agreement ......................................................................................................................... 48 20.13 Attorneys’ Fees ............................................................................................................................ 48 20.14 Action of the Town or Grantee .................................................................................................... 48 20.15 Authorization ................................................................................................................................. 48 Exhibit I ................................................................................................................................................... 50 1 CABLE TELEVISION AGREEMENT This Cable Television Agreement is entered into in Estes Park , Colorado, this 11th day of December, 2012, by and between the Town of Estes Park, Colorado, hereinafter (“Grantor” or the “Town”) and Baja Broadband Operating Company, LLC hereinafter known as “Grantee”. Grantor and Grantee are sometimes referred to hereinafter collectively as the “parties.” WHEREAS, the Grantor has reviewed Grantee’s performance under the prior Cable Television Permit Agreement dated July 27, 1993, as amended (hereinafter the “Permit”) and the quality of service during the prior Permit term, has identified the future cable-related needs and interests of the Grantor and its citizens, has considered the financial, technical and legal qualifications of Grantee, and has determined that Grantee’s plans for constructing, operating and maintaining its System are adequate, in a public proceeding affording due process to all parties; and WHEREAS, the public has had adequate notice and opportunity to comment on Grantee’s proposal to provide cable television service within the Town; and WHEREAS, the Grantor has a legitimate and necessary regulatory role in ensuring the availability of cable communications service, technical capability and reliability of Systems in its jurisdiction, the availability of local programming (including Governmental Access programming) and quality Customer service; and WHEREAS, diversity in Cable Service and local and non-local programming is an important policy goal and the Grantee’s System should offer a wide range of programming services; and WHEREAS, flexibility to respond to changes in technology, Subscriber interests and competitive factors within the Cable Service market should be an essential characteristic of this Agreement; and WHEREAS, the Town is authorized by applicable law to grant one or more nonexclusive agreements to construct, operate and maintain cable television Systems within the boundaries of the Town. NOW, THEREFORE, in consideration of the mutual promises made herein, and other good and valuable consideration as provided herein, the receipt and adequacy of which are hereby acknowledged, Grantor and Grantee do hereby agree as follows: SECTION 1. DEFINITIONS For the purposes of this Agreement and all Exhibits attached hereto the following terms, phrases, words and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. Words not defined shall be given their common and ordinary meaning. The word “shall” is always mandatory and not merely directory. 2 “Access” or “Access Programming” means the availability for Noncommercial use by various governmental and educational agencies, institutions and organizations, in the community, including Grantor and its designees, of Channels on the System designated for such use (but not for public access) as permitted under applicable law: (A) “Educational Access” means Access where Schools are the primary users having editorial control over programming and services. (B) “Governmental Access” means Access where governmental institutions or their designees are the primary users having editorial control over programming and services. “Access Channel” means any Channel, or portion thereof, designated for Noncommercial Access purposes or otherwise made available to facilitate or transmit Access programming. Channel 12 is currently the Access Channel on Grantee’s Cable System. “Access Fees” means the payments to be paid to the Grantor by the Grantee in accordance with section 9.7. “Activation” or “Activated” means the status of any capacity on or part of the System wherein the use of that capacity or part thereof may be made available without further installation of System equipment other than Subscriber premise equipment, whether hardware or software. “Affiliated Entity” or “Affiliate” when used in connection with Grantee means any Person who owns or controls, is owned or controlled by, or is under common ownership or control with Grantee. “Agreement” means the document in which this definition appears, that is executed between Grantor and Grantee, containing the specific provisions of the authorization granted and the contractual and regulatory agreement created hereby. “Agreement Area” means the incorporated area within the jurisdictional boundaries of the Grantor, including any areas annexed by Grantor during the term of this Agreement. “Agreement Fee” includes any tax, fee or assessment of any kind imposed by the Grantor on the Grantee or Subscribers, or both solely because of their status as such. The term Agreement Fee does not include: (A) Any tax, fee or assessment of general applicability (including any such tax, fee, or assessment on both utilities and Cable Operators or their services, but not including a tax, fee, or assessment that is unduly discriminatory against Cable Operators or cable Subscribers); (B) Requirements or charges incidental to the awarding or enforcing of the 3 Agreement, including but not limited to, payments for bonds, letters of credit, insurance, indemnification, penalties or liquidated damages; or (C) Any fee imposed under Title l7, United States Code. All Agreement Fees may be passed through to Subscribers as provided by Federal Law. For purposes of applicable Federal law and FCC regulations, Grantee and Town acknowledge that Agreement Fees are “Franchise Fees” as defined in 47 USC Section 542. “Bad Debt” means amounts lawfully owed by a Subscriber and accrued as revenues on the books of Grantee, but not collected after reasonable efforts by Grantee. “Basic Service” means any Cable Service Tier that includes, at a minimum, the retransmission of local television Broadcast Signals and Access programming. “Broadcast Signal” means a television or radio signal transmitted over the air to a wide geographic audience, and received by a System off-the-air by antenna, microwave, satellite dishes or any other means. “Cable Act” means the Cable Communications Policy Act of 1984, as amended by the Cable Television Consumer Protection and Competition Act of 1992, and as amended by the Telecommunications Act of 1996, and any amendments thereto. “Cable Operator” means any Person or group of Persons, including Grantee, who provides Cable Service over the System and directly or through one or more Affiliates owns a significant interest in such System or who otherwise control(s) or is (are) responsible for, through any arrangement, the management and operation of the System. “Cable Service” means the one-way transmission to Subscribers of Video Programming, or other programming service and Subscriber interaction, if any, which is required for the selection or use of such Video Programming or other programming service. “Channel” means a portion of the electromagnetic frequency spectrum that is used in a Cable System and that is capable of delivering or carrying a television channel (as television channel is defined by the FCC Regulations or as described as Video Programming Services). “Town” or “Grantor” means the Town of Estes Park, Colorado. “Designated Access Provider” means the entity or entities designated by the Grantor to manage or co-manage Educational or Governmental Access Channels and facilities. The Grantor may be a Designated Access Provider. “Downstream Channel” means a Channel capable of carrying a transmission from the 4 Headend to remote points on the System or to Interconnection points on the System. “Dwelling Unit” means any building or portion thereof that has independent living facilities, including provisions for cooking, sanitation and sleeping, and that is designed for residential occupancy. “Expanded Basic Service” means the level of cable programming services received by most Subscribers above Basic Service and does not include premium, or pay-per-view services. “FCC” means the Federal Communications Commission or its lawful successor. “Fiber Optic” means a transmission medium of optical fiber cable by means of electric lightwave pulses. “GAAP” means generally accepted accounting principles. “Generally Applicable” means when referenced to ordinances, laws or regulations, legal obligations that are applied generally and not solely limited to Grantee. “Gross Revenues” means any and all revenue derived directly or indirectly by Grantee, or by Grantee’s Affiliates or by any other entity that is a Cable Operator of the Cable System including Grantee’s Affiliates as determined in accordance with GAAP, from the operation of the Grantee’s Cable System to provide Cable Services in the Agreement Area. Gross Revenues include, by way of illustration and not limitation, monthly and other fees charged Subscribers for Cable Services including Basic Service, Expanded Basic Service, any expanded Tiers of Cable Service, other Tiers of Cable Service, optional Premium Service, pay-per-view and per-program Channels, Cable Service installation, disconnection, reconnection and change-in-service fees, Leased Access Channel fees, digital revenues, remote control rental fees, all Cable Service lease payments from the Cable System, late fees and administrative fees, fees, payments, consideration received by the Grantee from programmers for carriage of Cable Services on the Cable System and recognized as revenue under generally accepted accounting principles (GAAP), revenues from rentals of converters or other Cable System equipment, net advertising sales revenues (including local, regional and a pro rata share of national advertising carried on the Cable System in the Agreement Area), the fair market value of consideration received by the Grantee for use of the Cable System to provide Cable Service and accounted for as revenue under GAAP, revenues from program guides, additional outlet fees, Agreement Fees, revenue from the sale or carriage of other Cable Services, and revenues from home shopping. Gross Revenues shall include revenue received by any entity other than the Grantee where necessary to prevent evasion or avoidance of the obligation under this Agreement to pay the Agreement Fees. Gross Revenues shall not include (i) Bad Debt, provided, however, that all or part of any such Bad Debt that is written off but subsequently collected shall be included in Gross Revenues in the period collected; or (ii) any taxes on services furnished by the Grantee that are imposed directly on any Subscriber or user by the State, Town or other governmental unit and that are collected by the Grantee on behalf of said governmental 5 unit including the FCC User Fee. The Agreement Fees are not a tax, and are therefore included in Gross Revenues. Subject to Federal law, all Agreement Fees may be passed through to Subscribers. “Headend” or “Hub” means any Facility for signal reception and dissemination on the System, including cable, antennas, wires, satellite dishes, monitors, switchers, modulators, processors for Broadcast Signals or other signals, and other related equipment and facilities for the Interconnection of the System with adjacent Systems and Interconnection of any networks that are part of the System, and all other related equipment and Facilities. “Interconnect” or “Interconnection” means the linking of Access Channels with Access Channels carried on a geographically contiguous Cable System, including technical, engineering, physical, financial and other necessary components to accomplish, complete and adequately maintain such linking, in a manner to permit the transmission and receiving of electronic or optical signals between the System and other Systems; or to permit the necessary components to accomplish, complete and adequately maintain pathways that permit the transmission and receiving of electronic or optical signals between locations connected to portions of the System outside the Agreement Area and those portions of the System inside the Agreement Area. “Leased Access Channel” means any Channel or portion of a Channel commercially available for programming in accordance with Section 612 of the Cable Act. “Locally Scheduled Original Programming” means Government Access or Educational Access programming that is created by the Town or any School, Fire District, Library District or Local Marketing District including edited coverage of live programming. Such Locally Scheduled Original Programming shall not be considered as qualifying as such after three (3) cablecasts (initial, first repeat and second repeat). Automated Video Programming filler, such as cablecasts of highways and roads, does not constitute Locally Scheduled Original Programming that qualifies herein. “Noncommercial” means those products and services that are not promoted or sold. This term shall not be interpreted to prohibit an Access Channel operator or programmer from soliciting and receiving financial support to produce and transmit Video Programming on an Access Channel, or from acknowledging a contribution, in the manner of the Corporation for Public Broadcasting or some similar manner, subject to applicable law. “Normal Business Hours” means those hours during which most similar businesses in the community are open to serve Customers. “Normal Operating Conditions” means those service conditions that are within the control of the Grantee. Those conditions that are not within the control of the Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions that are ordinarily within the control of the Grantee include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods 6 and maintenance or upgrade of the System. “Pay Service” or “Premium Service” means Video Programming or other programming service choices (such as movie Channels or pay-per-view programs) offered to Subscribers on a per-Channel, per-program or per-event basis. “Person” means any natural person, sole proprietorship, partnership, joint venture, association, or limited liability entity or corporation, or any other form of entity or organization. “Residential Subscriber” means any Person who lawfully receives Cable Service delivered to Dwelling Units or multiple Dwelling Units, excluding such multiple Dwelling Units billed on a bulk billing basis. “Rights-of-Way” means land acquired or dedicated to the public or are hereafter acquired or dedicated to the public and maintained under public authority or by others, including but not limited to public streets or roads, highways, avenues, lanes, alleys, bridges, sidewalks and areas behind sidewalks, easements, wash parcels, drill sites, dedicated utility strips and similar public property or other property dedicated for compatible uses now or hereafter held by the Grantor within the Agreement Area which shall entitle the Grantee to the use thereof for the purpose of installing, operating, repairing and maintaining the Cable System. “School” means any State accredited K-12 public and private educational institutions excluding home schools. “Service Interruption” means the loss of picture or sound on one or more cable Channels. “State” means the State of Colorado. “Subscriber” or “Customer” means any Person who lawfully receives Cable Services provided by Grantee by means of the System with Grantee’s express permission. “System” or “Cable System” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide Cable Service that includes Video Programming and that is provided to multiple Subscribers within a community, but such term does not include (1) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (2) a facility that serves Subscribers without using any public right-of-way; (3) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the federal Communications Act (47 U.S.C. Section 201 et seq.), except that such facility shall be considered a cable system (other than for purposes of Section 621(c) (47 U.S.C. Section 541(c)) to the extent such facility is used in the transmission of Video Programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-demand services; (4) an open video system that complies with 47 U.S.C., Section 573 of the Cable Act; or (5) any facilities of any electric utility used solely for operating its electric utility systems. When used herein, the term “Cable System” or 7 “System” shall mean Grantee’s Cable System in the Agreement Area unless the context indicates otherwise. “Tier” means a category of Cable Services provided by the Grantee for which a separate rate is charged. “Video Programming” means programming provided by, or generally considered comparable to programming provided by, a television broadcast station. SECTION 2. GRANT OF AGREEMENT 2.1 Grant (A) Grantor hereby grants to Grantee a nonexclusive authorization to make reasonable and lawful use of the Rights-of-Way within the Agreement Area to construct, operate, maintain, reconstruct, repair and upgrade a System for the purpose of providing Cable Services, subject to the terms and conditions set forth in this Agreement and applicable law. This Agreement shall constitute a right, consistent with Section 13.1 to provide the Cable Services required by, and to fulfill the obligations set forth in, the provisions of this Agreement. (B) The Grantee, through this Agreement, is granted the right to operate its System using the Grantor’s Rights-of-Way within the Agreement Area in compliance with all lawfully enacted Generally Applicable construction codes and regulations. The Grantee specifically agrees to comply with the lawful provisions of Generally Applicable Town ordinances provided that in the event of a conflict between the provisions of ordinances and the Agreement, the express provisions of the Agreement shall govern. Subject to federal and State preemption, the express provisions of this Agreement constitute a valid and enforceable contract between the parties. This Agreement may not be unilaterally altered by the Grantor through subsequent amendment to any ordinance, rule, regulation, resolution, or other enactment of Grantor, except in the lawful exercise of Grantor’s police power. Grantee reserves the right to challenge provisions of any ordinance, rule, regulation, resolution or other enactment of the Grantor that conflicts with its contractual rights under this Agreement, either now or in the future. (C) This Agreement shall not be interpreted to prevent the Grantor from imposing other conditions, to the extent permitted by law, including additional compensation conditions for use of the Rights-of-Way, should Grantee provide service other than Cable Service. (D) No rights shall pass to Grantee by implication. Without limiting the foregoing, by way of example and not limitation, this Agreement shall not include or be a substitute for: (1) Any other permit or authorization of General Applicability required for the privilege of transacting and carrying on a business within the Town that may be required by the ordinances and laws of the Town. Grantee shall pay permit fees and inspection fees as required by the Town from businesses in the regular course of 8 business. (2) Any permit, agreement or authorization of General Applicability required by the Town for Rights-of-Way users in connection with operations on or in Rights-of-Way or public property including, by way of example and not limitation, street cut permits; or (3) Any permits or agreements of General Applicability for occupying any other property of the Town or private entities to which access is not specifically granted by this Agreement including, without limitation, permits and agreements for placing devices on poles, in conduits or in or on other structures. (E) This Agreement is intended to convey limited rights and interests only as to those Rights-of-Ways in which the Grantor has an actual interest. It is not a warranty of title or interest in any Rights-of-Way; it does not provide the Grantee with any interest in any particular location within the Rights-of-Way; and it does not confer rights other than as expressly provided in the grant hereof. (F) This Agreement is an express authorization to provide Cable Services only and does not authorize, prohibit or condition Grantee’s provision of non-Cable Services, telecommunications services or information services in the Agreement Area. This Agreement is not a bar to the imposition of any lawful conditions on Grantee with respect to non-Cable Services, telecommunications services or information services, whether similar, different or the same as the condition specify herein. This Agreement does not relieve Grantee of any obligation it may have to obtain from the Town an authorization to provide non-Cable Services, telecommunications services or information services or relieve Grantee of its obligation to comply with any such authorization(s) that may be lawfully required. However, this Agreement shall not be read as a concession by Grantee that it needs authority to provide non-Cable Services, telecommunications services or information services. 2.2 Use of Rights-of-Way (A) Grantee may erect, install, construct, repair, replace, reconstruct, and retain in, on, over, under, upon, across, through, below and along the Rights-of-Way within the Agreement Area, such wires, cables (both coaxial and Fiber Optic), conductors, ducts, conduit, vaults, manholes, amplifiers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of a System for the provision of Cable Services within the Agreement Area. (B) Grantee must install System facilities in a manner that minimizes interference with the use of the Rights-of-Way by others including others that may be installing communications facilities. Grantee shall comply with all Generally Applicable construction codes, laws, ordinances, regulations and procedures and must obtain any and all necessary permits from the Town prior to commencing any construction activities. 2.3 Duration The term of this Agreement and all rights, privileges, obligations and restrictions 9 pertaining thereto shall commence upon the effective date hereof and shall expire on December 10, 2022 unless lawfully terminated sooner as hereinafter provided. 2.4 Effective Date (A) This Agreement and the rights, privileges, and authority granted hereunder and the contractual relationship established hereby shall take effect and be in force from and after the effective date of this Agreement as specified in this Section. (B) The effective date of this Agreement shall be three business days after its adoption. (C) The grant of this Agreement shall have no effect on the Grantee’s duty under the Permit or any ordinance in effect prior to the effective date of this Agreement to indemnify or insure the Grantor against acts and omissions occurring during the period that the prior Permit was in effect, nor shall it have any affect upon liability to pay all Agreement Fees (for any prior years) that were due and owed under a prior Permit. 2.5 Agreement Nonexclusive This Agreement shall be nonexclusive, and subject to all prior rights, interests, easements, or agreements granted by Grantor or its predecessors to any Person to use any property, Right-of-Way, easement, right, interest for any purpose whatsoever, including the right of Grantor to use same for any purpose it deems fit, including the same or similar purposes allowed Grantee hereunder. Grantor may at any time grant authorization to use the Rights-of-Way for any purpose not incompatible with Grantee’s authority under this Agreement and for such additional Agreements for Cable Systems as Grantor deems appropriate subject to Section 2.6 below. 2.6 Grant of Other Agreements In the event Grantor enters into an agreement, permit, , authorization or other agreement of any kind with any other Person or entity other than the Grantee, including itself, to enter into the Grantor’s streets or Rights-of-Way for the purpose of constructing or operating a wireline System or providing wireline Cable Service to the Agreement Area in which the Grantee is providing Cable Service under the terms and conditions of this Agreement or is required to extend Cable Service under the provisions of this Agreement and if another cable operator offers Cable Service in the Agreement Area served by Grantee then at Grantee’s request, Grantor shall agree to amend this Agreement, on a going-forward basis only, for the limited purpose of ensuring that the material terms and conditions herein (unless prohibited by operation of law, regulation or FCC Order) shall be reasonably comparable and shall be neither more favorable nor less burdensome than those governing the other cable operator, in order that one wireline cable operator not be granted an unfair competitive advantage over another. 2.7 Familiarity with Agreement The Grantee acknowledges and warrants by acceptance of the rights, privileges and agreement granted herein, that it has carefully read and fully comprehends the terms and conditions of this Agreement and is willing to and does accept all reasonable risks of the meaning of the provisions, terms and conditions herein. 10 2.8 Effect of Acceptance By accepting the Agreement, the Grantee: (1) acknowledges and accepts the Grantor’s legal right to issue and enforce the Agreement; (2) accepts and agrees to comply with each and every provision of this Agreement subject to applicable law; and (3) agrees that the Agreement was granted pursuant to processes and procedures consistent with applicable law, and that it will not raise any claim to the contrary. 2.9 Police Powers Grantee’s rights hereunder are subject to the lawful police powers of Grantor to adopt and enforce ordinances necessary to the safety, health and welfare of the public, and Grantee agrees to comply with all Generally Applicable laws, ordinances and regulations lawfully enacted pursuant to the police powers of Grantor, or hereafter enacted in accordance therewith, by Grantor or any other legally constituted governmental unit having lawful jurisdiction over the subject matter hereof. The Town reserves the right to exercise its lawful police powers, notwithstanding anything in this Agreement to the contrary. Grantee reserves the right to challenge provisions of any ordinance, rule, regulation, resolution or other enactment of the Grantor that conflicts with its contractual rights either now or in the future. SECTION 3. AGREEMENT FEE AND FINANCIAL CONTROLS 3.1 Agreement Fee As compensation for the use of Grantor’s Rights-of-Way, Grantee shall pay as an Agreement Fee to Grantor, throughout the duration of this Agreement, an amount equal to five percent (5%) of Grantee’s Gross Revenues. Accrual of such Agreement Fee shall commence as of the effective date of this Agreement, but shall not be paid to the Town until the next required filing. 3.2 Payments Grantee’s Agreement Fee payments to Grantor shall be computed quarterly for the preceding calendar quarter ending March 31, June 30, September 30, and December 31. Each quarterly payment shall be due and payable no later than forty-five (45) days after said dates. 3.3 Acceptance of Payment No acceptance of any payment shall be construed as an accord by Grantor that the amount paid is, in fact, the correct amount, nor shall any acceptance of payments be construed as a release of any claim Grantor may have for further or additional sums payable or for the performance of any other obligation of Grantee. The period of limitation for recovery of Agreement Fees payable hereunder shall be three (3) years from the date on which payment by the Grantee was due. 3.4 Quarterly Agreement Fee Reports Each payment shall be accompanied by a written report to Grantor verified by an authorized representative of Grantee, containing an accurate statement in summarized form, as well as in detail, of Grantee’s Gross Revenues and the computation of the payment amount. Such reports shall detail all Gross Revenues of the System and shall be 11 drafted in accordance with GAAP. The Grantee shall file annually with the Town an audited financial report including an income statement applicable to Grantee’s total Cable System operations for the preceding 12 month period and a balance sheet. This shall be submitted along with such other reasonable information as the Town may reasonably request with respect to Grantee’s revenues and expenses related to its Cable System operations within the Town. 3.5 Audits On a maximum annual basis, upon thirty (30) days’ prior written notice, Grantor shall have the right to conduct an independent audit of Grantee’s records regarding Gross Revenues reasonably related to the enforcement of this Agreement and to calculate any amounts determined to be payable under this Agreement. Provided Grantee cooperates in making all relevant records available upon reasonable advance written request, Grantor will in good faith attempt to complete each audit within six (6) months, and the audit period shall not be any greater than the previous three (3) years. Any additional amounts due to the Grantor as a result of the audit shall be paid within ninety (90) days following written notice to the Grantee by the Grantor, which notice shall include a copy of the audit findings, and Grantee’s agreement that the audit findings are correct. If an undisputed Agreement Fee underpayment is discovered as the result of an audit, Grantee shall pay, in addition to the amount due, interest at the rate of one and one-half percent (1 ½ %) per month calculated from the date the underpayment was originally due until the date the Town receives the payment. If the audit shows that Agreement Fees have been underpaid, by five percent (5%) or more in a calendar year, Grantee shall pay the reasonable cost of the audit such cost for the entire audit not to exceed $2,500. 3.6 Financial Records Grantee agrees to meet with a representative of the Grantor upon request to review Grantee’s methodology of record-keeping, financial reporting, the computing of Agreement Fee obligations and other procedures, the understanding of which the Grantor deems necessary for reviewing reports and records that are relevant to the enforcement of this Agreement. The parties shall use best efforts to conduct such meetings telephonically. 3.7 Interest on Late Payments In the event any payment is not received within forty five (45) days from the end of the calendar quarter, Grantee shall pay, in addition to the payment or sum due, interest on the amount due at the rate of one and one-half percent (1 ½%) per month on the date the payment was due, calculated from the date the payment was originally due until the date the Town receives the payment. 3.8 Additional Commitments Not Agreement Fees No term or condition in this Agreement shall in any way modify or affect Grantee’s obligation to pay Agreement Fees. Although the total sum of Agreement Fee payments and additional commitments set forth elsewhere in this Agreement may total more than five percent (5%) of Grantee’s Gross Revenues in any 12-month period, Grantee agrees that the additional commitments regarding PEG funding and Access Channels are excluded from the definition of Agreement Fees herein and are not Agreement Fees, nor 12 are they to be offset or credited against any Agreement Fee payments due to Grantor, nor do they represent an increase in Agreement Fees to be passed through to Subscribers pursuant to any federal law. Access Fees are not to be offset against and are not Agreement Fees so long as and to the extent that the Access Fees are used for PEG Access Capital Support or as otherwise permitted under Section 9.7. The Grantee agrees not to assert or otherwise claim at any time before any court of competent jurisdiction or any administrative agency that, as of the effective date of this Agreement, that such PEG funding and Access Channels are Agreement Fees as defined under federal or State law or regulations so as to form the basis for offset or credit against any and or all Agreement Fee payments paid or due to the Town. Furthermore, Grantor and Grantee agree that any utility tax, business and occupation tax or similar tax of General Applicability shall be in addition to any Agreement Fees required herein and there shall be no offset against Agreement Fees for any utility tax, business and occupation tax or similar tax, subject to applicable law. 3.9 Payment on Termination If this Agreement terminates for any reason, the Grantee shall file with the Grantor within one hundred twenty (120) calendar days of the date of the termination, a financial statement, certified by an independent certified public accountant, showing the Gross Revenues received by the Grantee since the end of the previous fiscal year. Within forty five (45) days of the filing of the certified statement with the Grantor, Grantee shall pay any unpaid amounts as indicated. If the Grantee fails to satisfy its remaining financial obligations as required in this Agreement, the Grantor may do so by utilizing the funds available in a Letter of Credit or other security provided by the Grantee. 3.10 Bundling Grantor acknowledges that, during the term of this Agreement, Grantee may offer to its Subscribers, at a discounted rate, a bundled or combined package of services consisting of Cable Services, which are subject to the Agreement Fee referenced above in section 3.1, and other services that are not subject to that Agreement Fee. To the extent discounts reduce revenues includable for purposes of calculating Agreement Fees, the Grantee may not unfairly or unlawfully allocate discounts for bundled services for the purpose of evading payment of Agreement Fees to the Town. If a dispute arises between the parties regarding this matter, Grantor and Grantee will meet within ten (10) days notice and discuss such matters in good faith in an attempt to reach a reasonable compromise thereof. 3.11 Tax Liability The Agreement Fees shall be in addition to any and all taxes or other levies or assessments which are now or hereafter required to be paid by businesses in general by any law of the Town, the State or the United States including, without limitation, sales, use, utility and other taxes, business license fees or other payments. Payment of the Agreement Fees under this Agreement shall not exempt Grantee from the payment of any other license fee, permit fee, tax or charge on the business, occupation, property or income of Grantee that may be lawfully imposed by the Town. Any other license fees, taxes or charges shall be of General Applicability in nature and shall not be levied against 13 Grantee solely because of its status as a Grantee or against Subscribers solely because of their status as such. SECTION 4. ADMINISTRATION AND REGULATION Grantor shall be vested with the power and right to administer and enforce the requirements of this Agreement and the regulations and requirements of applicable law, including the Cable Act, or to delegate that power and right of administration, or any part thereof, to the extent permitted under federal, State and local law, to any agent in the sole discretion of the Town provided, however, that Grantee shall have the right to appeal to the Town Board any adverse determination made by a delegate of the Town. 4.1 No Rate Discrimination All Grantee rates and charges shall be published (in the form of a publicly-available rate card), and shall be non-discriminatory as to all Persons of similar classes, under similar circumstances and conditions. Grantee shall apply its rates in accordance with governing law. Nothing herein shall be construed to prohibit: (A) The temporary reduction or waiving of rates or charges in conjunction with promotional campaigns; (B) The offering of reasonable discounts including in response to competition within the Agreement Area to similarly situated Persons; (C) The offering of rate discounts for either Cable Service generally; or (D) The offering of bulk discounts for Multiple Dwelling Units. 4.2 Filing of Rates and Charges (A) Throughout the term of this Agreement, Grantee shall, if requested by Grantor and if not otherwise available to Grantor via the Internet, maintain on file with Grantor a complete schedule of applicable rates and charges for Cable Services provided under this Agreement. Nothing in this subsection shall be construed to require Grantee to file rates and charges under temporary reductions or waivers of rates and charges in conjunction with promotional campaigns. As used in this subsection, no rate or charge shall be considered temporary if Subscribers have the ability over a period greater than twelve (12) consecutive months (or such other period as may be approved by Grantor) to purchase Cable Services at such rate or charge. 4.3 Performance Evaluation (A) Special evaluation sessions may be held by Grantor during the term of this Agreement within thirty (30) days of the Grantor’s written request to Grantee, but no more often than once every two years. (B) All evaluation sessions shall be open to the public and announced at least one week in advance in a newspaper of general circulation in the Agreement Area. 14 (C) Topics that may be discussed at any evaluation session may include, but are not limited to, Cable Service rates; Agreement Fees; liquidated damages; free or discounted Cable Services; application of new technologies; System performance; Cable Services provided; programming offered; Customer complaints; privacy; amendments to this Agreement; judicial and FCC rulings; line extension policies; and Grantor’s or Grantee’s rules; provided that nothing in this subsection shall be construed as requiring the renegotiation of this Agreement or any term or provision therein. 4.4 Leased Access Channel Rates Grantee shall offer Leased Access Channel capacity on such terms and conditions and rates as may be negotiated with each lessee subject to the requirements of Section 612 of the Cable Act. 4.5 Late Fees (A) For purposes of this subsection, any assessment, charge, cost, fee or sum, however, characterized, that the Grantee imposes upon a Subscriber solely for late payment of a bill is a late fee and shall be applied in accordance with applicable local, State and federal laws. (B) The Grantee’s late fee and disconnection policies and practices shall be nondiscriminatory, and such policies and practices, and any fees imposed pursuant to this subsection, shall apply equally in all parts of the Agreement Area without regard to the neighborhood or income level of the subscribers. (C) Nothing in this subsection shall be deemed to create, limit or otherwise affect the ability of the Grantee to impose other assessments, charges, fees or sums for the Grantee’s other services or activities it performs in compliance with applicable law including FCC law, rule or regulation. SECTION 5. FINANCIAL AND INSURANCE REQUIREMENTS 5.1 Indemnification (A) General Indemnification. Grantee shall indemnify, defend and hold Grantor, its officers, officials, boards, commissions, authorized agents and employees, and self-insurance pool harmless from any action or claim for injury, damage, loss, liability, cost or expense, including court and appeal costs and attorneys’ fees and expenses, arising from any casualty or accident to Person or property, including, without limitation, copyright infringement, defamation, and all other damages in any way arising out of, or by reason of, any construction, excavation, operation, maintenance, reconstruction, or any other act done under this Agreement, by or for Grantee, its authorized agents, or its employees; provided however Grantee shall not be obligated to indemnify or defend any claim or action arising from or related to the negligence or willful misconduct of indemnified parties or arising from or related to the operation or use of the Access Channels by Governmental or Educational personnel. Grantee shall consult and cooperate with the Grantor while conducting its defense of the Grantor. (B) Indemnification for Relocation. Subject to applicable law, Grantee shall indemnify Grantor for any damages, claims, additional costs or expenses assessed 15 against, or payable by, Grantor related to, arising solely out of, or resulting solely from Grantee’s failure to remove, adjust or relocate any of its facilities in the streets in a timely manner in accordance with any relocation required by Grantor to the extent that Grantee is lawfully required to pay relocation costs. (C) Exceptions. Grantee will not be required to indemnify the indemnified parties or any third party for any claims arising out of the use of Access Channels by the Grantor and/or its Designated Access Providers or use by the Grantor of the Emergency Alert System. (D) Additional Circumstances. Grantee shall also indemnify, defend and hold Grantor harmless for any claim for injury, damage, loss, liability, cost and expense, including court and appeal costs and attorneys’ fees and expenses in any way arising out of any failure by Grantee to secure consents from the owners, authorized distributors or franchisees/licensors of programs to be delivered by the System. (E) Procedures and Defense. If a claim or action arises, Grantor or any other indemnified party shall promptly tender the defense of the claim or action to Grantee, which defense shall be at Grantee’s expense. Grantor may participate in the defense of a claim at its own expense and, in any event, Grantee may not agree to any settlement of claims financially affecting Grantor without Grantor’s written approval that shall not be unreasonably withheld. (F) Duty of Defense. The fact that Grantee carries out any activities under this Agreement through independent contractors shall not constitute an avoidance of or defense to Grantee’s duty of defense and indemnification under this Section. (G) Duty to Give Notice. The Grantor shall give the Grantee timely written notice of any claim or of the commencement of any action, suit or other proceeding covered by the indemnity in this Section. In the event any such claim arises, the Grantor or any other indemnified party shall tender the defense thereof to the Grantee, and the Grantee shall have the obligation and duty to defend any claims arising thereunder and the Grantor shall cooperate fully therein. (H) Separate Representation. If separate representation to fully protect the interests of both parties is necessary, such as a conflict of interest between the Grantor and the counsel selected by Grantee to represent the Grantor, Grantor may participate at its own expense. Grantee shall pay attorneys’ fees and expenses incurred by the Grantor in defending itself with regard to any action, suit or proceeding indemnified by Grantee. The Grantor’s fees and expenses shall include all reasonable out-of-pocket expenses, such as outside counsel fees, and shall also include the reasonable value of any services rendered by the Town Attorney or his/her assistants or any employees of the Grantor or its agents but shall not include outside attorneys’ fees or consultant fees for services that are unnecessarily duplicative of services provided the Grantor by Grantee. (I) During the period while Grantee owned the System, the grant of this Agreement shall have no effect on the Grantee’s duty under the Permit to indemnify or 16 insure the Town against acts and omissions involving third parties occurring during the period that the Permit was in effect, nor shall it have any effect upon Grantee’s liability to pay all Agreement Fees which were due and owed under the Permit. (J) Colorado Government Immunity. The parties hereby agree and affirm that nothing in this Agreement shall be deemed a waiver of the defenses and limitations of the Colorado Governmental Immunity Act, Section 24-10-101 C.R.S., et seq. or any immunities, limitations or defenses otherwise provided to the Town under federal or state law and shall not be deemed to confer any benefits to any Person or entity not a party to this Agreement. 5.2 Insurance Requirements (A) General Requirement. Grantee shall at its own expense purchase and maintain the minimum insurance required herein with companies duly franchised or licensed to do business in the State of Colorado. Said insurance shall possess a current A.M. Best, Inc. rating of A-VI or better. Said insurance shall be maintained in full force and effect until all work required to be performed under the terms of this Agreement is satisfactorily completed. Grantee solely shall be responsible for deductibles and/or self-insured retention. (B) Minimum Insurance Limits. Grantee must maintain during the Agreement term insurance in effect in accordance with the minimum insurance limits herein set forth by the Grantor. The Grantee shall provide a certificate of insurance for the following Minimum insurance limits: (1) Commercial General Liability: One Million Dollars with Two Million Dollars ($2,000,000) aggregate limit per occurrence for bodily injury, personal injury and property damage and Two million dollars ($2,000,000) products and completed operations; (2) Automobile Liability: One million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage; and (3) Employer’s Liability: One hundred thousand dollars ($100,000). (4) Umbrella Liability Insurance in the amount of Three Million Dollars ($3,000,000). (5) Workers Compensation Insurance in accordance with State law requirements. (6) Grantee shall be responsible for judgments, settlements, damages, costs, attorneys’ fees and expenses that exceed limits of Grantee’s insurance coverage. 17 Endorsements. (1) All policies shall contain, or shall be endorsed so that: (a) The Grantor shall be designated as additional insured except under the Employer’s Liability and Worker’s Compensation. (2) The insurance shall provide that the insurance shall not be cancelled or materially altered so as to be out of compliance with the requirements of this Section without thirty (30) days written notice first being given to Grantor. 5.3 Security (A) Grantee shall provide, subject to the requirement of Subsection 5.3 (B) below a Performance Bond in the amount of five thousand dollars ($5,000) to ensure the faithful performance of its responsibilities under this Agreement and applicable law, including, by way of example and not limitation, its obligations to relocate and remove its facilities and to restore Town Rights-of-Way and other property. Grantee may be required to obtain additional bonds, such as generally applicable Construction Bonds, in accordance with the Town’s ordinary practices. The Construction Bond and Performance Bond shall be in a form reasonably acceptable to the Town’s Risk Manager. Grantee shall pay all premiums or costs associated with maintaining the bond(s), and shall keep the same in full force and effect at all times. Except as expressly provided herein, the Grantee shall not be required to obtain or maintain other bonds as a condition of being awarded the Agreement or continuing its existence. Grantee may substitute the performance bond with a letter of credit or similar instrument in the amount of $5,000.00. (B) If there is an uncured breach of a material provision of this Agreement or pattern of repeated violations of any provision(s) of this Agreement, then the Town may request and Grantee shall establish and provide, within thirty (30) days from receiving notice from the Town, to the Town as security for the faithful performance by Grantee of all of the provisions of this Agreement, a letter of credit from a financial institution satisfactory to the Town or a Performance Bond in the amount of five thousand dollars ($5,000). (C) After the giving of notice by the Town to Grantee, and expiration of any applicable cure period, the letter of credit or performance bond may be drawn upon by the Town for purposes that include, but are not limited to the following: (1) Failure of Grantee to pay the Town sums due under the terms of this Agreement; (2) Reimbursement of costs borne by the Town to correct Agreement violations not corrected by Grantee; and (3) Monetary remedies or damages assessed against Grantee as 18 provided in this Agreement. (D) The Town shall give Grantee written notice of any withdrawal under this subsection upon such withdrawal. Any such withdrawal must be after and subject to the cure provisions provided in this Agreement. Within fifteen (15) days following receipt of such notice, Grantee shall restore the letter of credit to the amount required under this Agreement. Grantee’s maintenance of the letter of credit or performance bond shall not be construed to excuse unfaithful performance by Grantee or limit the liability of Grantee to the amount of the letter of credit or performance bond or otherwise limit the Town’s recourse to any other remedy available at law or in equity. (E) The letter of credit and bonds shall provide that the letter of credit and bonds shall not be cancelled or materially altered so as to be out of compliance with the requirements of this Section without thirty (30) days written notice first being given to Grantor. If the letter of credit and bonds are cancelled or materially altered so as to be out of compliance with the requirements of this Section within or beyond the term of this Agreement, Grantee shall provide a replacement letter of credit and bonds. Grantee agrees to maintain continuous uninterrupted letter of credit and bonds in the amounts required as specified in this Agreement. (F) Grantee shall have the right to appeal to the Town Board for reimbursement in the event Grantee believes that the letter of credit was drawn upon improperly. After a determination by the Town Board, Grantee shall also have the right of judicial appeal if Grantee believes the letter of credit has not been properly drawn upon in accordance with this Agreement. Any funds the Town erroneously or wrongfully withdraws from the letter of credit shall be returned to Grantee with interest, from the date of withdrawal at a rate equal one and one-half percent (1 ½%) per month. SECTION 6. CUSTOMER SERVICE 6.1 Customer Service Standards Grantee shall comply with Customer Service Standards as provided in FCC Standards 47 C.F.R. Sections 76.309, 76.1602, 76.1603 and 76.1619, and as they may be amended. Additionally, Grantee shall provide its service under Normal Operating Conditions and comply with Customer Service Standards as they exist on the date of adoption of this Agreement, and as are currently contained in Exhibit I attached hereto and made a part hereof. Grantee reserves the right to challenge any Customer Service Standard that it believes is inconsistent with its rights under this Agreement. 6.2 Subscriber Privacy Grantee shall comply with privacy rights of Subscribers in accordance with applicable federal and State laws. 6.3 Customer Service Location(s) Throughout the Agreement term, the Grantee must maintain a local office in the Town where Customers may pay bills, pick up and drop off equipment and obtain information related to services and products and speak with a Customer Service Representative. The 19 office shall be open during Normal Business Hours, having a listed telephone number and be so operated that complaints and requests for repair, service, or adjustments may be received at any time. Grantee is encouraged but not required to provide a website whereby Subscribers can request service credit and service information. 6.4 Customer Service Agreement and Manual (A) Grantee shall provide to Subscribers an accurate, comprehensive service agreement (currently called the work order) and Customer installation packet (currently called the Install Packet) for use in establishing Subscriber service consistent with Grantee’s standard operating practices. (B) A copy of the installation packet shall be available at the Customer service location as provided in this Agreement and shall be provided to each Subscriber at the time of initial installation or Cable Service upgrade requiring a home visit by the Grantee (excluding reconnections to the same Subscriber within twelve (12) months), and at any time the packet is requested by the Subscriber. Within thirty (30) days following material policy changes, information regarding the changes will be provided to Subscribers. SECTION 7. REPORTS AND RECORDS 7.1 Records Upon thirty (30) days prior written notice, Grantor shall have access to, and the right to inspect, any books and records of Grantee and its Affiliates that are reasonably related to the enforcement of the terms of this Agreement. Such review shall be at the Grantee’s business office during Normal Business Hours and on a nondisruptive basis. Such notice shall specifically reference the section of the Agreement that is under review so that the Grantee may organize the necessary books and records for easy access by the Grantor. Grantee shall not be obligated to maintain any books or records for a period longer than three (3) years, and in the case of Subscriber complaints, for a period of one (1) year, and Grantee shall not deny Grantor access to any of Grantee’s records on the basis that Grantee’s records are under the control of any parent corporation, Affiliated Entity or a third party. Grantor may, in writing, request copies of any such records or books, and Grantee shall provide such copies within thirty (30) days of the receipt of such request. One copy of all reports and records required under this or any other Section shall be furnished to Grantor at the sole expense of Grantee. If the requested books and records are too voluminous, or for security reasons cannot be copied or removed, then Grantee may request, in writing within ten (10) days of receipt of such request, that Grantor inspect them at Grantee’s local offices. If any books or records of Grantee are not kept in a local office and not made available in copies to Grantor upon written request as set forth above, and if Grantor determines that an examination of such records is necessary for the enforcement of this Agreement, then all reasonable travel expenses incurred in making such examination shall be paid by Grantee. 7.2 Confidentiality Notwithstanding anything to the contrary set forth in this Agreement, the Grantee shall not be required to disclose information which it reasonably deems to be proprietary or confidential in nature. Grantee shall not be required to provide Customer information in 20 violation of Section 631 of the Cable Act or any other applicable federal or state privacy law. For purposes of this Section, the terms “proprietary or confidential” include, but are not limited to, information relating to the Cable System design, customer lists, marketing plans, financial information unrelated to the calculation of Agreement Fees, or rates pursuant to FCC rules or other information that is reasonably determined by the Grantee to be competitively sensitive. Grantee may make proprietary or confidential information available for inspection but not copying or removal by the Grantor’s representative. 7.3 Records Required (A) Consistent with Section 7.1, Grantee shall at all times maintain: (1) A full and complete set of plans, records and “route” maps showing the location of all System equipment installed or in use in the Rights-of-Way, that are generated in Grantee’s normal course of business; (2) A copy of all FCC filings on behalf of Grantee, its parent corporations or Affiliates that relate to the operation of the System in the Agreement Area including any such filing that shows the Cable System or Grantee not to be in compliance with FCC Standards or requirements; (3) A list of Grantee’s Cable Services, rates and Channel line-ups; (4) A compilation of Subscriber complaints, actions taken and resolution, and a log of service calls. 7.4 Copies of Federal and State Reports Upon reasonable written request, Grantee shall submit to Grantor copies of any pleading, applications, notifications, communications and documents of any kind, submitted by Grantee or its Affiliates to any federal, State or local courts, regulatory agencies and other government bodies if such documents directly relate to the operations of Grantee’s System within the Agreement Area. Grantee shall submit such documents to Grantor no later than thirty (30) days after receipt of Grantor’s request. Grantee shall not claim confidential, privileged or proprietary rights to such documents unless under federal, State, or local law such documents have been determined to be confidential by a court of competent jurisdiction, or a federal or State agency. With respect to all other reports, documents and notifications provided to any federal, State or local regulatory agency as a routine matter in the due course of operating Grantee’s System within the Agreement Area, Grantee shall make such documents available to Grantor upon Grantor’s written request. 7.5 Complaint File and Reports Consistent with Section 7.1 herein, Grantee shall keep an accurate and comprehensive compilation of any and all escalated written Customer complaints received from Grantor and Grantee’s actions in response to those complaints, in a manner consistent with the privacy rights of Subscribers. Upon reasonable written request of at least thirty (30) days written notice, this file shall be made available to the Grantor during Normal Business Hours. Upon written request, but no more often than once annually, Grantee shall 21 provide an executive summary report to the Town within thirty (30) days of Grantor’s written request that shall include the nature and type of escalated Customer complaints referred in writing by the Grantor to Grantee. 7.6 Inspection of Facilities and Annual Meeting Grantor may inspect any of Grantee’s facilities and equipment located in the Rights-of- Way or on other public property at any reasonable time during business hours upon at least three (3) days notice, or, in case of emergency, upon demand without prior notice. 7.7 False Statements Any intentional false or misleading statement or representation in any report required by this Agreement shall be a material breach of this Agreement and may subject Grantee to all remedies, legal or equitable, that are available to Grantor under this Agreement or otherwise. SECTION 8. PROGRAMMING 8.1 Broad Programming Categories Grantee shall provide at least the following initial broad categories of programming to the extent such categories are reasonably available. (A) Educational programming; (B) News, weather and information; (C) Sports; (D) General entertainment including movies; (E) Children, family oriented; (F) Arts, culture and performing arts; (G) Foreign language programming; and (H) Science/documentary. 8.2 Deletion of Broad Programming Categories Consistent with applicable law, Grantee shall not delete or so limit as to effectively delete any broad category of programming within its control without prior written notice to the Town. 8.3 Obscenity Grantee shall comply with applicable laws related to obscenity. 8.4 Services for the Disabled Grantee shall comply with the Americans With Disabilities Act and any amendments or successor legislation thereto. 22 8.5 Parental Control Device Upon request by any Subscriber, Grantee shall make available at its regular and nondiscriminatory charge a parental control or lockout device, traps or filters to enable a Subscriber to prohibit viewing of a particular cable service during periods selected by the Subscriber. Grantee shall inform its Subscribers of the availability of the lockout device at the time of their initial subscription and periodically thereafter. 8.6 Complementary Cable Service The Grantee, upon request, shall provide without charge, a Standard Installation and one outlet of Basic Service and Expanded Basic Service to those Town buildings now existing or hereafter constructed within the Agreement Area provided that the buildings are either owned and occupied or leased and occupied by the Grantor, for any of its services or programs, fire station(s), police and sheriff station(s), libraries and School(s) and including but not limited to, Town Hall, Fire Department, Library District, Local Marketing District (Administrative Office), Senior Center, Stanley Park (Administrative Building), Light & Power Shop, Fleet Building and Water Shop, Visitor Center, Town Museum and Multiple Purpose Events Center and provided further that they are already served or passed by the Grantee’s Cable System and are within 125 aerial feet or sixty (60) underground feet (provided that this does not require extensive boring or the use of costly construction equipment) (a Standard Installation) of its Cable System, excluding those buildings or portions of buildings that house or occupy prison/jail populations. Grantee shall maintain complementary Basic and Expanded Basic Cable Service to one outlet for each conference room that is currently served and those outlets currently provided in Town buildings. The Cable Service described herein is a voluntary initiative of Grantee, and shall be provided throughout the term of this Agreement so long as the buildings meet the above requirements and unless or until Grantor requests that service be discontinued. The Cable Service provided shall not be distributed beyond the originally installed outlet without authorization from Grantee. Such installation shall not interfere with the operation of Grantee’s Cable System. In the case of leased facilities leased by the Town for administrative functions, the recipient of service is responsible for securing approval for appropriate right of entry suitable to the Grantee in its reasonable discretion. The Cable Service provided shall only be used for lawful purposes, shall not be used for commercial purposes or to entertain public or private groups and shall not be located in public waiting areas. The intent of the preceding provision is to ensure access to Cable Services for the benefit of the Grantor and educational institutions. The Grantor shall take reasonable precautions to prevent any use of the Grantee’s Cable System in any manner that results in the inappropriate use thereof or any loss or damage to the Cable System. To the extent not inconsistent with other provisions in this Agreement, the Grantor shall hold the Grantee harmless from any and all liability or claims arising out of the use of Cable Service at Town facilities and educational facilities required by this Section. For new hookups, the Grantee shall not be required to provide an outlet to such buildings where a non-Standard Installation is required, unless the Grantor or building owner/occupant agrees to pay the incremental cost of any necessary Cable System extension and non-Standard Installation. If additional outlets of Cable Service are provided to such buildings beyond those required herein, the building owner/occupant shall pay the usual installation and service fees associated therewith. Grantor shall notify 23 Grantee if the Town ceases to occupy any facility or building where complimentary Cable Service is provided. SECTION 9. EDUCATIONAL AND GOVERNMENTAL ACCESS 9.1 Access Channels Grantee shall continue at all times during the term of this Agreement to make available, as part of the Basic Service package, at no additional charge, one Channel for Access Channel Programming to be carried on the Cable System and shared with Larimer County. Permitted noncommercial uses of the Access Channel may include: (i) the identification of financial supporters similar to what is provided on public broadcasting stations; or (ii) the solicitation of financial support for the provision of Access Programming for charitable, educational or governmental access purposes; or (iii) programming offered by accredited, non-profit, educational institutions which may offer telecourses over an access channel; or (iv) other permitted noncommercial uses allowed by federal or State law. Additionally, Grantee shall make available at no charge one (1) additional Channel to be triggered for PEG programming in accordance with Section 9.2 herein. In the event Grantee makes any change in the System and related equipment and facilities or in signal delivery technology, which change directly or indirectly affects the signal quality or transmission of any Access Channel programming or services, the Grantee shall, at its own expense, take necessary technical steps, acquire new equipment, and in addition, provide the necessary assistance and foregoing equipment so that the Access facilities and equipment may be used as intended to ensure that delivery of Access Video Programming signals is not diminished or adversely affected, including, among other things, so that live and taped programming can be cablecast with as good or better signal quality than existed prior to such change. For example, these provisions shall apply if Basic Service on the Cable System is converted from an analog to a digital format, so that Access Channels supplied to Grantee in analog format may be continued to be received by Subscribers. 9.2 Triggers for Additional Access Channels Pursuant to Section 9.1 (Access Channels), the Town may require Grantee to make available one (1) additional activated Downstream Channel when the Access Channel required by Section 9.1 is used for Locally Scheduled Original Programming (excluding character generated and filler programming, e.g. NASA, AM/FM Radio Programming) during fifty percent (50%) of the hours between 10:00 A.M. and 10:00 P.M., Monday through Friday during any consecutive eight (8) week period, Grantee shall make available, upon written request within six (6) months one additional Access Channel for Access Programming purposes. Therefore, an average of six (6) hours of Locally Scheduled Original Programming per day on a five day per week basis for an eight (8) consecutive week period is required to trigger use of an additional Access Channel. The programming of an additional Access Channel required herein must contain distinct and non-repetitive programming of the other Access Channel. 24 9.3 Management and Control of Access Channels (A) Grantor may authorize Designated Access Providers to control, operate, and manage the use of any and all Access facilities including, without limitation, the programming of Access Channels. The Grantor or its designee may formulate rules for the operation of the Access Channels, consistent with this Agreement. Nothing herein shall prohibit the Grantor from authorizing itself to be a Designated Access Provider or from assigning several Designated Access Providers with similar types of Governmental or Educational programming to share Access Channel space consistent with local, State and Federal law. 9.4 Underutilized Access Channels Grantee and the Grantor agree that it is their mutual goal to fully and efficiently use the Channel capacity of the Cable System, which may include allowing the Grantee to use underutilized time on Access Channels. If Grantee believes that any Access Channel has underutilized time, Grantee may file a request with the Grantor to use that time. The Grantor shall render a decision regarding the matter within sixty (60) days of receiving the request. Should the Grantor find that the Access Channel or portion of the Access Channel may be used by the Grantee, then Grantee may begin using such time ninety (90) days after receipt of the decision. If Grantor wants the time back on the Channel and has a plan to use it, Grantee shall, within sixty (60) days’ notice of receiving the request, return the time back to Grantor. 9.5 Access Channel Identification/Location/Relocation Grantee will use commercially reasonable efforts to minimize the movement of Access Channel assignments. Grantee shall provide to the Grantor a minimum of sixty (60) days notice, and use commercially reasonable efforts to provide ninety (90) days notice, prior to any relocation of its Access Channels, unless the change is required by federal law, in which case Grantee shall give the Grantor the maximum notice possible. If the change is not required by Federal Law, Grantee shall place notice of the change on its regular monthly schedule. If a PEG Channel is going to be relocated or moved, it must be located or relocated within the same channel grouping as broadcast channels. In addition, Grantee shall provide Grantor with a total not to exceed one hundred (100) thirty second (:30) promotional spots (“Spots”) on the System serving the Agreement Area during a thirty (30) day period prior to the date of the change in the location of the Access Channels. The number of Spots to be provided under this Section shall be prorated with respect to any partial period less than thirty (30) days. Grantor or its designee shall have sole responsibility to produce and deliver the Spots to Grantee on a timely basis and in a cablecast-ready state. Such Spots shall promote the Access Channels and the Channel relocations only for the sole purpose of notifying Subscribers of the change in Channel designations, and shall not include any mention of third party or other sponsors. Placement of the Spots shall be made by the Grantee on a run-of schedule basis. All Spots are subject to Grantee’s approval; such approval not to be unreasonably withheld or delayed. Any new Channel designations for the Access Channels provided pursuant to this Agreement shall be in full compliance with FCC signal quality and proof-of-performance standards. 25 9.6 Access Interconnections (A) The Access Channels required by this Agreement shall be Interconnected with the Access Channels of geographically adjacent Cable Systems that are owned and operated by Grantee or an Affiliate of Grantee but not with the nonadjacent cable systems of Grantee. Grantee shall take all necessary technical steps to ensure that downstream transmissions provide an adequate signal quality in accordance with FCC regulations. (B) Nothing in this section alters Grantee’s Channel obligations for Access programming delivered to Subscribers within the Agreement Area. Unless the Grantor directs otherwise, or an affected jurisdiction objects, any Interconnection shall allow Access Channels to operate without disruption or delay across and within the Agreement Area boundaries. (C) It is not the Grantee’s responsibility to ensure that the signals provided to the Interconnection by unaffiliated Interconnecting System meet industry standards. (D) If any equipment and construction costs are borne by Grantee in connection with the obligation to provide for Access Channel Interconnection the pro rata share of same shall be considered a capital cost. Grantor agrees that such cost is an “external cost” as such term is used in 47 C.F.R. Section 76.922(f) on the date of this Agreement, and as such, the cost is permitted under federal law and regulation to be passed through to Subscribers, to the extent and in a manner provided for in federal regulations governing the same. 9.7 Support for Coverage of Governmental and Educational Programming Grantor and Grantee acknowledge that in order to cover local Governmental and Educational Programming which will be shown on the Access Channel on either a live or taped replay basis, Grantor shall use its own personnel or contract with third parties to provide the operational support to broadcast such programming. Therefore, throughout the term of this Agreement, during years 1 through 5, Grantee shall reimburse Grantor at the rate of $25.00/hour, for up to five hours per month, for the coverage of Town Board Meetings, Planning Commission Meetings, Educational or similar such Meetings. During years 6 through 10 of this Agreement, Grantee shall reimburse Grantor at the rate of $30.00 dollars per hour for up to 5 hours per month for such coverage. Payment shall be remitted by Grantee to Grantor within thirty (30) days of receipt of invoices by Grantee. 9.8 Access Channels On Lowest Tier All Access Channels provided to Subscribers under this Agreement shall be included by Grantee, without limitation, on the lowest Tier of Cable Service offered by Grantee on its System. 9.9 Technical Quality The Grantee shall maintain all Access channels and Interconnections as required by FCC standards and consistent with the quality and level with Grantee’s other Basic Service Channels to the extent it is within the control of the Grantee. The Grantee shall provide 26 routine maintenance and shall repair and replace, if necessary, any of Grantee’s equipment required to carry a quality signal from the Access facilities provided under this Agreement to Subscribers. 9.10 Return Lines (A) Grantee shall continue to maintain a fiber-optic return line from the Town to Grantee’s Hub so that there can be delivery of Access programming to Subscribers. All other return line construction costs (other than maintaining the return line which is currently in place) shall be paid by the Grantor at a cost mutually agreed to between the Grantor and Grantee and shall be completed within six (6) months of request. Grantee may require that a reasonable deposit of the estimated project cost be paid in advance. (B) After satisfactory completion of work requested by the Grantor for which the Grantor is to reimburse the Grantee and upon submission by Grantee, in such form as may be requested by the Grantor, of a proper invoice for payment of the cost reasonably incurred and accompanied by such evidence in support thereof as may be reasonably required by the Grantor, the Grantor agrees to make payment for the cost reasonably incurred up to the estimated cost for the work; provided, however, that all payments shall be subject to adjustment for any amount found upon audit or otherwise to have been improperly invoiced. All work shall be performed in a cost-effective manner to minimize the costs to the Grantor. SECTION 10. GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION 10.1 Construction (A) Subject to Generally Applicable laws, regulations and ordinances of Grantor and the provisions of this Agreement, Grantee shall perform all maintenance, construction, repair, upgrade and reconstruction necessary in the Rights-of-Way for the operation of its System. All construction and maintenance of any and all of Grantee’s facilities within Rights-of-Way shall, regardless of who performs the construction, be and remain Grantee’s responsibility. Grantee shall apply for, and obtain, all permits necessary for construction or installation of any facilities and for excavating and laying any facilities within the Rights-of-Way. Grantee shall pay all Generally Applicable fees upon issuance of the requisite construction permits by Grantor to Grantee. (B) Prior to beginning any construction, Grantee shall provide Grantor with plans and a construction schedule for work in the Rights-of-Ways as required by Grantor’s permitting regulations. (C) Grantee may make excavations in Rights-of-Way for any facility needed for the maintenance or extension of Grantee’s System. Prior to doing such work, Grantee shall apply for, and obtain, appropriate permits from Grantor, and give appropriate notices to Grantor. As a condition of any permits so issued, Grantor may impose such Generally Applicable reasonable conditions and regulations as are necessary for the purpose of protecting any structures in such Rights-of-Way, proper restoration of such Rights-of-Way and structures, protection of the public and the continuity of pedestrian or vehicular traffic. Whenever it is possible and reasonably practicable to joint trench or share bores or cuts, Grantee shall work with other providers, and permittees so as to 27 reduce so far as possible the number of Rights-of-Way cuts within the Agreement Area. (D) In the event that emergency repairs are necessary, Grantee shall immediately notify Grantor of the need for such repairs after such repairs are undertaken. Grantee may initiate such emergency repairs, and shall apply for appropriate permits within forty-eight (48) hours after discovery of the emergency. 10.2 Location of Facilities Within three (3) business days, unless otherwise specified in federal, State or local regulations, after the Grantor or any provider, or permittee of the Grantor notifies Grantee of a proposed Right-of-Way excavation, Grantee shall, at Grantee’s expense: (A) Mark on the surface all of its located underground facilities within the area of the proposed excavation; (B) Notify the excavator of any unlocated underground facilities in the area of the proposed excavation; or (C) Notify the excavator that Grantee does not have any underground facilities in the vicinity of the proposed excavation. 10.3 Restoration of Rights-of-Way (A) Whenever Grantee disturbs the surface of any Rights-of-Way for any purpose, Grantee shall promptly restore the Rights-of-Way to a condition reasonably comparable to the condition of the Rights-of-Way immediately prior to such disturbance normal wear and tear excepted. When any opening is made by Grantee in a hard surface pavement in any Rights-of-Way, Grantee shall promptly refill the opening and restore the surface as required by its construction permit. (B) If Grantee excavates the surface of any Rights-of-Way, Grantee shall be responsible for restoration in accordance with applicable regulations regarding the Rights-of-Way and its surface within the area affected by the excavation. Grantor may, after providing reasonable notice to Grantee and giving Grantee sufficient opportunity to fix the surface itself, refill or repave any opening made by Grantee in the Rights-of-Way, and the reasonable expense thereof shall be paid by Grantee. Grantor may, after providing reasonable notice to Grantee, and giving Grantee sufficient opportunity to fix the work, remove and repair any work done by Grantee that, in the determination of Grantor, does not conform to applicable code. The reasonable cost thereof, including the costs of inspection and supervision shall be paid by Grantee. All excavations made by Grantee in Rights-of-Way shall be properly safeguarded for the prevention of accidents. All of Grantee’s work under this Agreement, and this Section in particular, shall be done in compliance with all rules, regulations and ordinances of Grantor. 10.4 Maintenance and Workmanship (A) Grantee’s System shall be constructed and maintained in such manner as not to interfere with sewers, Sewer Districts, water pipes or any other property of Grantor, or with any other pipes, wires, conduits, pedestals, structures or other facilities 28 that may have been laid in Rights-of-Way by, or under, Grantor’s authority. (B) Grantee shall provide and use any equipment and appliances necessary to control and carry Grantee’s signals so as to prevent damage to Grantor’s property or property belonging to any Person. Grantee, at its own expense, shall repair, renew, change and improve its facilities to keep them in good repair and safe and presentable condition. (C) The Grantee’s transmission and distribution System, wires and appurtenances shall be located, erected and maintained so as not to endanger or interfere with the lives of Persons, or to unnecessarily hinder or obstruct the free use of Rights-of- Way, alleys, bridges or other public property. (D) Grantee will maintain membership in good standing with the Utility Notification Center of Colorado, or other similar or successor organization designated to coordinate underground equipment locations and installations. Grantee shall abide by Colorado State’s “Underground Utilities” statutes and will further comply with and adhere to local procedures, customs and practices relating to the one call locator service program. (E) Grantee shall give reasonable notice to private property owners of construction work in adjacent Rights-of-Way. 10.5 Acquisition of Facilities Upon Grantee’s acquisition of facilities in any Rights-of-Way, or upon the addition or annexation to the Town of any area in which Grantee owns or operates any facility, Grantee shall, at Grantor’s written request, submit to Grantor a statement describing all facilities involved, whether authorized by agreement, permit, or other prior right, and specifying the location of all such facilities to the extent Grantee has possession of such information. Such facilities shall immediately be subject to the terms of this Agreement to the extent that such facilities are consistent with the terms of this Agreement or can be made consistent within a reasonable time. 10.6 Reservation of Rights-of-Way Nothing in this Agreement shall prevent Grantor or public utilities from constructing any public work or improvement. All such work shall be done insofar as practicable so as not to obstruct, injure, or prevent the use and operation of Grantee’s Cable System (A) Movement of System For and By Grantor. The Grantor shall have the right to require Grantee to relocate, remove, replace, modify or disconnect Grantee’s facilities and equipment located in the Rights-of-Way or on other property of the Grantor in the event of an emergency or when necessary to protect or further the health, safety or welfare of the general public and such work shall be performed at Grantee’s expense consistent with applicable law. Except during an emergency, Grantor shall provide reasonable notice to Grantee, not to be less than fifteen (15) business days and allow Grantee the opportunity to perform such work. 29 Following notice by the Grantor, Grantee shall remove, replace, relocate, modify or disconnect any of its facilities or equipment within any Right-of-Way, or on any other property of the Grantor, except that the Grantor shall provide at least ninety (90) days’ written notice of any major capital improvement project that would require the removal, relocation, replacement, modification or disconnection of Grantee’s facilities or equipment. If the Grantee fails to complete this work within the time prescribed and to the Grantor’s reasonable satisfaction, the Grantor may cause such work to be done and bill the cost of the work to the Grantee. Grantee shall remit payment to Grantor within thirty (30) days of receipt of an itemized list of those costs. If the Town requires Grantee to relocate its facilities located within the Rights-of-Way, the Town shall make a reasonable effort to provide Grantee with an alternate location in the Rights-of-Way. If funds are generally made available to users of the Rights-of-Way for such relocation, Grantee shall be entitled to seek its pro rata share of such funds. (B) Movement for Other Permittees. At the request of any Person holding a valid permit and upon reasonable advance notice, Grantee shall temporarily raise, lower or remove its wires as necessary to permit the moving of a building, vehicle, equipment or other item. The cost of such temporary change must be paid by the permit holder, and Grantee may require the estimated payment in advance. 10.7 Rights-of-Way Vacation If any Rights-of-Way or portion thereof used by Grantee is vacated by Grantor during the term of this Agreement, unless Grantor specifically reserves to Grantee the right to continue the use of vacated Rights-of-Way, Grantee shall, without delay or expense to Grantor, remove its facilities from such Rights-of-Way, and restore, repair or reconstruct the Rights-of-Way where such removal has occurred. Grantor shall make a reasonable effort to provide Grantee with an alternate location within the Rights-of-Way. In the event of failure, neglect or refusal of Grantee, after thirty (30) days’ written notice by Grantor, to restore, repair or reconstruct such Rights-of-Way, Grantor may do such work or cause it to be done, and the reasonable cost thereof shall be paid by Grantee within thirty (30) days of receipt of an invoice and documentation. If funds are available to any Person using the Rights-of-Way for the purpose of deferring the cost of any of the foregoing, the Grantor shall reimburse the Grantee in the same manner in which other Persons affected by the requirement are reimbursed. 10.8 Removal of Discontinued Facilities Whenever Grantee intends to discontinue using any facility within the Rights-of-Way, Grantee shall submit for Grantor a complete description of the facility and the date on which Grantee intends to discontinue using the facility. Grantee may remove the facility or request that Grantor allow it to remain in place. Notwithstanding Grantee’s request that any such facility remain in place, Grantor may require Grantee to remove the facility from the Rights of Way or modify the facility to protect the public health, welfare, safety and convenience, or otherwise serve the public interest. Grantor may require Grantee to 30 perform a combination of modification and removal of the facility. Grantee shall complete such removal or modification in accordance with a schedule reasonably set by Grantor. Until such time as Grantee removes or modifies the facility as reasonably directed by Grantor, or until the rights to and responsibility for the facility are accepted by another Person having authority to construct and maintain such facility, Grantee shall be responsible for all necessary repairs and relocations of the facility, as well as maintenance of the Rights-of-Way, and shall retain all liability for such facilities in the same manner and degree as if the facility were in active use. If Grantee abandons its facilities, Grantor may choose to use such facilities for any purpose whatsoever including, but not limited to, Access Channel purposes. If Grantor chooses to utilize any such abandoned facilities, Grantee’s liability for those facilities shall cease. 10.9 Hazardous Substances (A) Grantee shall comply with all applicable State and federal laws, statutes, regulations and orders concerning hazardous substances within the Rights-of-Way. (B) Grantor may inspect Grantee’s facilities in Rights-of-Way to determine if any release of hazardous substances has occurred, or may occur, from or related to Grantee’s System. In removing or modifying Grantee’s facilities as provided in this Agreement, Grantee shall also remove all residue of hazardous substances related thereto. 10.10 Undergrounding of Cable (A) Wiring. (1) Where electric and telephone utility wiring are installed underground at the time of System construction and when all such wiring is subsequently placed underground, all System lines, wiring and equipment shall also be placed underground by Grantee with other wireline service concurrently unless it is not feasible to underground due to rocky soil (which shall be in the Town’s reasonable determination) or within a reasonable time thereafter at no expense to the Grantor unless otherwise allowed by applicable law and/or funding is generally available for such relocation to all users of the Rights-of-Way. Related System equipment, such as pedestals, power supplies and other ground-mounted appurtenances must be placed in accordance with applicable Town Code requirements and rules. In areas where either electric or telephone utility wiring are aerial, the Grantee may install aerial cable, except when a property owner or resident requests underground installation and agrees to bear the additional cost in excess of aerial installation. Nothing contained in this subsection shall require Grantee to construct, operate and maintain underground any ground-mounted appurtenances including, but not limited to pedestals, power supplies, etc. (2) The Grantee shall utilize existing poles and conduit wherever commercially reasonable. (3) This Agreement does not grant, give or convey to the Grantee the right or privilege to install its facilities in any manner on specific utility poles or equipment of the Grantor or any other Person. Terms, compensation for and use 31 of Town Poles shall be governed by a separate Pole Attachment Agreement between the Town and Grantee. (4) The Grantee and the Grantor recognize that situations may occur in the future where the Grantor may desire to place its own cable or conduit for Fiber Optic cable in trenches or bores opened by the Grantee for purposes which are not in competition with Grantee. In addition, the Grantee agrees to cooperate with the Grantor in any other construction by the Grantee that involves trenching or boring provided that Grantor’s use is for Noncommercial purposes and Grantor has first provided reasonable notice to Grantee that it is interested in sharing the trenches or bores in the area where Grantee’s construction is occurring. If sufficient space is reasonably available, the Grantee shall allow the Grantor to lay its cable, conduit and Fiber Optic cable in the Grantee’s trenches and bores, provided the Grantor shares in the cost of the trenching and boring on the same terms and conditions as the Grantee at that time shares the total cost of trenches and bores and the Grantor certifies in writing that it shall not use any facilities for purposes which are in competition with Grantee. The Grantor shall be responsible for maintaining its respective cable, conduit and Fiber Optic cable buried in the Grantee’s trenches and bores under this paragraph. (5) The Grantor shall not be required to obtain easements for the Grantee. (6) The Grantee shall participate with other providers in joint trench projects to relocate its overhead facilities underground and remove its overhead facilities in areas where all utilities are being converted to underground facilities. To the extent technically feasible, relocation of overhead facilities underground shall be completed within ninety (90) days (or such other period of time provided by Town Code) in areas where electric or telephone utilities are being converted to underground facilities. (B) Repair and Restoration of Property. The Grantee shall protect public and private property within the Rights-of-Way from damage. 10.11 Codes Grantee shall strictly adhere to all Generally Applicable building and zoning codes currently or hereafter in effect as long as they do not materially affect Grantee’s rights under this Agreement. 10.12 Construction and Use of Poles Whenever feasible, Grantee shall use existing poles when the installation of facilities above-ground is permitted. In the event Grantee cannot obtain the necessary poles and related facilities pursuant to a pole attachment agreement, and only in such event, then it shall be lawful for Grantee to make all needed excavations in the streets for the purpose of placing, erecting, laying, maintaining, repairing and removing poles, conduits, supports for wires and conductors, and any other facility needed for the maintenance or extension of Grantee’s System. All poles of Grantee shall be erected in locations 32 approved by the Grantor, and each pole shall be set whenever practicable at an extension lot line. Grantor shall have the right to require Grantee to change the location of any pole within Rights-of-Way when, in the opinion of Grantor, the public health, safety or welfare requires such change, and the expense thereof shall be paid by Grantee. Terms, compensation for and use of Town Poles shall be governed by a separate Pole Attachment Agreement between the Town and Grantee. Any dispute between a private property owner and the Grantee regarding the proposed location of a pole shall be resolved between such private property owner and Grantee and shall not involve the Grantor. 10.13 Tree Trimming Upon obtaining a written permit from Grantor, if such a permit is required, Grantee may prune or cause to be pruned, using proper pruning practices in accordance with such permit, any tree or other natural growth in the Rights-of-Way that interferes with the System. 10.14 Standards (A) All work authorized and required hereunder shall be done in a safe, thorough and workmanlike manner. The Grantee must comply with all federal, State and local safety requirements, rules, regulations, laws and practices, and employ all necessary devices as required by applicable law during construction, operation and repair of its System. By way of illustration and not limitation, the Grantee must comply with the National Electric Code, National Electrical Safety Code and Occupational Safety and Health Administration (OSHA) Standards. (B) Grantee shall ensure that all cable drops are properly bonded and grounded at the home, consistent with applicable code requirements. All non-conforming or non-performing cable drops shall be replaced by Grantee as necessary. (C) All installations of equipment shall be permanent in nature, durable and installed in accordance with good engineering practices and of sufficient height to comply with all federal, State and local regulations, ordinances and laws so as not to interfere in any manner with the right of the public or individual property owner, and shall not interfere with the travel and use of public places by the public during the construction, repair, operation or removal thereof, and shall not obstruct or impede traffic. (D) In the maintenance and operation of its System in Rights-of-Way and other public places, and in the course of any new construction or addition to its facilities, the Grantee shall proceed so as to cause minimal inconvenience to the general public; any opening or obstruction in the Rights-of-Way or other public places made by the Grantee in the course of its operations shall be guarded and protected at all times by the placement of adequate barriers, fences or boarding, the bounds of which, during periods of dusk and darkness, shall be clearly marked. 10.15 Stop Work On notice from Grantor that any work is being conducted contrary to the provisions of 33 this Agreement, or in an unsafe or dangerous manner as determined by Grantor, or in violation of the terms of any applicable permit, laws, regulations, ordinances or standards, the work may immediately be stopped by Grantor. The stop work order shall: (A) Be in writing; (B) Be sent to Grantee by mail at the address given herein; (C) Indicate the nature of the alleged violation or unsafe condition; and (D) Establish conditions under which work may be resumed. 10.16 Work of Contractors and Subcontractors Grantee’s contractors and subcontractors shall be licensed and bonded in accordance with local ordinances, regulations and requirements. Work by contractors and subcontractors shall be subject to the same restrictions, limitations and conditions as if the work were performed by Grantee. Grantee shall be responsible for all work performed by its contractors and subcontractors and others performing work on its behalf, and shall ensure that all such work is performed in compliance with this Agreement and other applicable law, and shall be jointly and severally liable for all damages caused by them. It is Grantee’s responsibility to ensure that contractors, subcontractors or other persons performing work on Grantee’s behalf are familiar with the requirements of this Agreement and other applicable laws governing the work performed by them. 10.17 Safety Under any circumstances regarding operation or use of the System that poses or involves public health, safety or welfare hazards, peril or danger or property hazards, Grantee shall take steps and act expeditiously to rectify such situations until conclusion. 10.18 Joint Trenching/Boring To the extent it is technically and economically feasible, Grantee shall joint trench or share bores or cuts and work with other providers (such as, but not limited to, telecommunications, gas, sewer, water and electric companies), licensees, permittees so as to reduce the number of right-of-way cuts within the Town. 10.19 GIS Mapping Grantee shall within a reasonable timeframe comply with any Generally Applicable ordinances, rules and regulations of the Town regarding geographic information systems mapping for users of the rights-of-way and upon thirty (30) days written request, provide electronic copies of route locations from Assessor’s Maps showing the location of System lines and facilities in the Rights-of-Way, but excluding detail on proprietary electronics or other proprietary information related to Grantee’s specific design of the System. It is understood that this requirement is for Grantee to provide information which is already available to it and not new information which would be otherwise necessary to be generated by Grantee. SECTION 11. SYSTEM DESIGN 34 (A) The Cable System is capable of delivering signals that meet FCC technical quality standards regardless of a particular manner in which the signal is transmitted. Grantee agrees to maintain the Cable System in a manner consistent with, or in excess of these specifications throughout the term of the Agreement. (B) Subscriber Network. All or part of the Cable System may be capable of delivering at least two hundred (200) Channels of Video Programming services to Subscribers, and may be two-way capable provided that the Grantee reserves the right to use the bandwidth in the future for other uses based on market factors. The Town and Grantee acknowledge that Grantee is currently undertaking an upgrade of the Cable System and when such upgrade is completed in the first quarter of 2013, such Cable System will be an 860 MHz system capable of delivering at least 115 6 Mhz Channels including Channels in high definition. (C) Equipment must be installed so that all closed captioned programming received by the Cable System shall include the closed caption signal so long as the closed caption signal is provided consistent with FCC standards. (D) Grantee acknowledges that the minimum Cable System design and performance requirements set forth in this Agreement are enforceable, to the extent allowed by law. SECTION 12. TECHNICAL STANDARDS 12.1 Technical Performance The technical performance of the Cable System shall meet all applicable technical standards authorized or required by law, including, without limitation, FCC technical standards, as they may be amended from time to time, regardless of the transmission technology utilized. The Town shall have the full authority permitted by applicable law to enforce compliance with these technical standards. 12.2 Inspection of Construction Grantor shall have the right to inspect any construction or installation work performed under this Agreement and to charge Generally Applicable inspection fees therefor. If an unsafe condition is found to exist, the Grantor, in addition to taking any other action permitted under applicable law, may order Grantee, in writing, to make the necessary repairs and alterations specified therein forthwith to correct the unsafe condition within the time specified by Grantor. The Grantor has the right to correct, inspect, administer and repair the unsafe condition if Grantee fails to do so within the time specified, and to charge Grantee the reasonable cost therefore. In such event, the Grantor shall not be liable for any damage to any portion of Grantee’s Cable System unless the Grantor acted in a negligent manner and Grantor’s liability is only to the extent permitted by State law. 12.3 Cable System Performance Testing (A) Grantee shall, at its expense, perform all tests on its Cable System required by the FCC and shall maintain written records of its test results in accordance with applicable law. Upon advance request, all FCC required technical performance tests 35 may be witnessed by representatives of the Town. The expense of the Town providing its representatives to witness the test shall be borne by the Town. Copies of such test results will be provided to the Town upon request. (B) Upon request, Grantee will notify the Town before any required technical proof-of-performance or other testing occurs. (C) Grantee shall promptly take such measures as are necessary and diligently continue the same until completion in order to correct any performance deficiencies fully and to prevent their recurrence. Grantee’s failure to correct deficiencies identified through this testing process shall be a violation of this Agreement. Sites shall be re- tested following correction until correction has been confirmed and satisfactory results are obtained. 12.4 Additional Tests (A) Where there exists an ongoing pattern of poor technical performance or quality on the Cable System, then upon thirty (30) days prior written notice, the Town may require Grantee to conduct proof of performance tests on test points located within the Town and provide results of such tests within thirty (30) days after completion thereof. This testing requirement may only be triggered by the Town once during each twelve (12) month period. (B) Grantee shall cooperate with the Town in performing the testing described in Subsection (A) and shall prepare the results and a report if requested, within thirty (30) days after testing. Such report shall include the following information: (1) the nature of the complaint or problem that precipitated the special tests; (2) the Cable System component tested; (3) the equipment used and procedures employed in testing; (4) the method, if any, in which such complaint or problem was resolved; and (5) any other information pertinent to said tests and analysis that may be reasonably required. SECTION 13. SERVICE EXTENSION 13.1 Service Availability (A) In general, except as otherwise provided herein and subject to receiving permits from the Town, Grantee shall provide a standard installation of Cable Service within seven (7) days of a request by any Person within its Agreement Area. For purposes of this Section, a request shall be deemed made on the date of signing a service agreement, receipt of funds by Grantee, receipt of a written request by Grantee or receipt by Grantee of a verified verbal request. Grantee shall provide such service: 36 (1) With no line extension charge except as specifically authorized elsewhere in this Agreement. (2) At a non-discriminatory installation charge for a standard installation, consisting of a one hundred twenty five (125) foot aerial drop or sixty (60) feet for an underground drop (provided that this does not require extensive boring or the use of costly construction equipment) connecting to the exterior demarcation point for Subscribers, with additional charges for non-standard installations computed according to a non-discriminatory methodology for such installations, adopted by Grantee and provided upon request in writing to the Town. (3) At non-discriminatory monthly rates for all Residential Subscribers, excepting commercial Customers, MDU Bulk Customers and other lawful exceptions to uniform pricing. (4) Notwithstanding any other provision of this Agreement, the Grantee shall have the right, but shall have no obligation to extend the Cable System into any portion of the Agreement Area where Grantee is not providing Cable Service on the effective date of this Agreement, or where another cable operator is providing Cable Service, or into any area that is not contiguous to the present service area of the Grantee. Additionally, Grantee shall not be obligated to provide Cable Service to any area that is commercially unreasonable. (B) No Customer shall be refused service arbitrarily. However, for unusual circumstances, such as a Customer’s request to locate the cable drop underground with a distance of more than sixty (60) feet (and also provided that this does not require extensive boring or the use of costly construction equipment) or the existence of more than one hundred twenty five (125) aerial feet of distance from distribution cable to connection of service to Customers, or a density of less than fifteen (15) residences (excluding those residences that have direct broadcast satellite video service and those where access easements cannot be obtained on a reasonable basis from third parties) per 5280 cable-bearing strand feet of trunk or distribution cable, service may be made available on the basis of a capital contribution in aid of construction, including cost of material, labor and easements. For the purpose of determining the amount of capital contribution in aid of construction to be borne by the Grantee and Customers in the area in which service may be expanded, the Grantee will contribute an amount equal to the construction and other costs per mile, multiplied by a fraction whose numerator equals the actual number of residences per 5280 cable-bearing strand feet of its trunk or distribution cable and whose denominator equals fifteen (15). Customers who request service hereunder will bear the remainder of the construction and other costs on a pro rata basis. The Grantee may require that the payment of the capital contribution in aid of construction borne by such potential Customers be paid in advance. The density requirement contained herein shall also apply to annexed and newly developed areas within the Town as well. (C) The Grantee shall provide Cable Service to Multiple Dwelling Units in 37 accordance with an agreement with the property owner or owners, this Agreement and all applicable laws. SECTION 14. STANDBY POWER AND EMERGENCY ALERT SYSTEM 14.1 Standby Power Grantee shall provide standby power generating capacity at the System Headend capable of providing at least twelve (12) hours of emergency operation. Grantee shall maintain standby power system supplies throughout the System rated for at least four (4) hours duration. 14.2 Emergency Alert Capability (A) Grantee shall provide an operating Emergency Alert System (“EAS”) in compliance with FCC standards throughout the term of this Agreement. Given the possibility of fire, flood or other natural disaster, the Town shall have the ability to remotely phone in to exercise override capability (using a passcode or password) and send emergency messages over and on the EAS System since it would impact only the Estes Park area and Larimer County near Estes Park and not other jurisdictions. The Grantee shall pay for the cost of the EAS equipment in the Headend and the Grantor shall pay for the monthly cost of one standard phone line. (B) Grantee shall ensure that the EAS system is functioning properly at all times. It will test the EAS system periodically, in accordance with FCC regulations. Upon request, Grantee will advise the Town of the testing schedule so that the Town may be present for the tests. SECTION 15. AGREEMENT BREACHES; TERMINATION OF AGREEMENT 15.1 Procedure for Remedying Agreement Violations (A) If Grantor believes that Grantee has failed to perform any material obligation under this Agreement or has failed to perform in a timely manner, Grantor shall first informally discuss the matter with Grantee. If this discussion does not lead to resolution of the problem, the Grantor shall notify Grantee in writing, stating with reasonable specificity, the nature of the alleged default. Grantee shall have thirty (30) days from the receipt of such notice to: (1) Respond to Grantor, contesting Grantor’s assertion that a default has occurred; (2) Cure the default; or (3) Notify Grantor that Grantee cannot cure the default within the thirty (30) days, because of the nature of the default. In the event the default cannot be cured within thirty (30) days, Grantee shall promptly take all reasonable steps to cure the default and notify Grantor in writing and in detail as to the exact steps that will be taken and the projected completion date. Upon five (5) business days’ prior written notice, either Grantor or Grantee may call an informal meeting to discuss the alleged default. In such case, if matters are not resolved at such meeting, Grantor may set a hearing in accordance with subsection (B) below to 38 determine whether additional time beyond the thirty (30) days specified above is indeed needed, and whether Grantee’s proposed completion schedule and steps are reasonable. (B) If Grantee does not cure the alleged default within the cure period stated above, or by the projected completion date under subsection (A)(3), or denies the default, or Grantor orders a hearing in accordance with subsection (A)(3), Grantor shall set a public hearing to investigate said issues or the existence of the alleged default. Grantor shall notify Grantee of the hearing in writing and such hearing shall take place no less than thirty (30) days after Grantee’s receipt of notice of the hearing which notice shall specify the time, place and purpose of such hearing. At the hearing, Grantee shall be provided an opportunity to be heard, to present and question witnesses, and to present evidence in its defense. At any such hearing, Grantor shall not unreasonably limit Grantee’s opportunity to make a record that may be reviewed should any final decision of Grantor be appealed to a court of competent jurisdiction. The determination as to whether a default or a material breach of this Agreement has occurred shall be within Grantor’s sole discretion, but any such determination shall be subject to de novo review by appeal to a court of competent jurisdiction. (C) If, after the public hearing, Grantor determines that a default still exists, Grantor shall order Grantee to correct or remedy the default or breach within fourteen (14) days of Town notification or within such other reasonable timeframe as Grantor shall determine. Grantor’s decision shall be provided to the Grantee in writing, setting forth the reasons supporting the Town’s actions. In the event Grantee does not cure within such time to Grantor’s reasonable satisfaction, Grantor may: (1) Assess and collect monetary damages in accordance with this Agreement; and (2) Commence revocation procedures consistent with Subsection 15.4 herein; and (3) Pursue any other legal or equitable remedy available under this Agreement or applicable law. (D) Grantee reserves the right to appeal any determination made pursuant to Section 15.1 (C) to a court of competent jurisdiction which shall have the authority to conduct de novo review of the Grantor’s decision. At the hearing, the Grantee shall be provided an opportunity to be heard and a complete transcript shall be made of such proceeding. The determination as to whether a violation of this Agreement has occurred pursuant to this Section herein shall be within the sole discretion of the Grantor in accordance with law. Any such determination by Grantor shall be accompanied by a record, to which Grantee’s contribution shall not be limited by Grantor (i.e., Grantor shall hear any interested Persons and shall allow Grantee an opportunity to be heard, to cross examine witnesses, to present evidence and to make additions to the hearing record). Any such final determination shall be subject to appeal to the Town Board or review by a court of competent jurisdiction. Such appeal to the appropriate Court shall be taken 39 within sixty (60) days of the issuance of the determination of the Grantor. Grantor shall receive notice from Grantee of any appeal concurrent with any filing to a court of competent jurisdiction. 15.2 Alternative Remedies No provision of this Agreement shall be deemed to bar the right of either party to seek or obtain judicial relief from a violation of any provision of the Agreement or any rule, regulation, requirement or directive promulgated thereunder. Neither the existence of other remedies identified in this Agreement nor the exercise thereof shall be deemed to bar or otherwise limit the right of either party to recover monetary damages, as allowed under applicable law, or to seek and obtain judicial enforcement of obligations by means of specific performance, injunctive relief or mandate, or any other remedy at law or in equity. The Grantor specifically does not, by any provision of this Agreement, waive any right, immunity, limitation or protection (including complete damage immunity) otherwise available to the Grantor, its officers, officials, Boards, members, commissions, agents, or employees under federal, State, or local law including by example Section 635A of the Cable Act. The Grantee shall not have any monetary recourse against the Grantor, or its officers, officials, Board, members, commissions, agents or employees for any loss, costs, expenses or damages arising out of any provision, requirement of this Agreement or the enforcement thereof, subject to applicable law. 15.3 Assessment of Monetary Damages and Letter of Credit Subject to Section 5.3: (A) Grantee shall deliver to the Town an irrevocable and unconditional Letter of Credit, in a form and substance acceptable to the Town, from a National or State bank subject to reasonable approval by the Town, in the amount of $2,500. (B) The Letter of Credit shall provide that funds will be paid to the Town, in an amount for liquidated damages charged pursuant to this Section, in payment for any monies owed by the Grantee to the Town or any Person as a result of any material acts or material omissions by the Grantee pursuant to this Agreement or due to a pattern of repeated violation of any provisions of this Agreement. Grantee shall have the opportunity to cure as provided in Section 15.1 of this Agreement. (C) In addition to the recovery of any monies owed by the Grantee to the Town or any Person or damages to the Town or any Person as a result of any material acts or material omissions by the Grantee pursuant to the Agreement, the Town in its sole discretion may, after notice and opportunity to cure as provided in Section 15.1, charge to and collect from the Letter of Credit the following liquidated damages: (1) For failure to cooperate with the Town during an application process or System review or as otherwise provided herein, the Liquidated Damages shall be $100.00 per day for each day, or part thereof, such failure occurs or continues. (2) For failure to provide the following services and payments required by this 40 Agreement; the implementation and the utilization of the Access Channel; the payments required by Section 9.7; and the Agreement Fees as required by Section 3.1 - the Liquidated Damages shall be $200.00 per day for each day, or part thereof, such failure occurs or continues. (3) For failure to comply with the Customer Service Standards in Exhibit I, the liquidated damages shall be $100.00 per day for each day such failure occurs or continues. (D) Each violation of any material provision referenced above in Section 15.3(C) of this Agreement shall be considered a separate violation for which separate liquidated damages can be imposed, provided, however, it is agreed that Liquidated Damages may not be assessed for time period exceeding sixty (60) days and further if there are multiple violations, the maximum amount per day for Liquidated Damages on a cumulative basis may not be more than $300 per day. If after assessing Liquidated Damages for sixty (60) days, Grantee still has not cured or commenced to cure the alleged breach to the satisfaction of the Grantor, the Grantor may pursue all other remedies. (E) If said Letter of Credit or any subsequent Letter of Credit delivered pursuant thereto expires prior to twelve (12) months after the expiration of the term of this Agreement, it shall be renewed or replaced during the term of this Agreement to provide that it will not expire earlier than twelve (l2) months after the expiration of this Agreement. The renewed or replaced Letter of Credit shall be of the same form and with a bank authorized herein and for the full amount stated in paragraph (A) of this Section. (F) Because it may be difficult to calculate the harm to the Town in the event of a breach of this Agreement by Grantee, the parties agree to liquidated damages as a reasonable estimation of the actual damages. To the extent that the Town assesses liquidated damages as provided in this Agreement and such liquidated damages have been paid, such damages shall be the Town’s sole and exclusive remedy. Nothing in this Section is intended to preclude the Town from exercising any other right or remedy with respect to a breach that continues past the time the Town stops assessing liquidated damages for such breach. (G) The bond(s) and Letter of Credit referred to in Section 5.3 (A) may be drawn or collected upon by the Town for breach of a material provision after notice and opportunity to cure. The Town shall give Grantee written notice of any intent to withdraw under this subsection. Within fifteen (15) days following receipt of such notice, Grantee shall restore the bond(s) and Letter of Credit to the amount required under this Agreement. Grantee’s maintenance of the bond(s) and Letter of Credit shall not be construed to excuse unfaithful performance by Grantee or to limit the liability of Grantee to the amount of the bond(s) and Letter of Credit or otherwise to limit the Town’s recourse to any other remedy available at law or in equity. 41 Grantee shall have the right to appeal to the Town Board for reimbursement in the event Grantee believes that a bond or Letter of Credit was drawn upon improperly. Grantee shall also have the right of judicial appeal if Grantee believes a bond or Letter of Credit has not been properly drawn upon in accordance with this Agreement. Any funds the Town erroneously or wrongfully withdraws from the bond(s) or Letter of Credit shall be returned to Grantee with interest from the date of withdrawal. The assessment does not constitute a waiver by the Town of any other right or remedy it may have under the Agreement or applicable law, including its right to recover from Grantee any additional damages, losses, costs and expenses that are incurred by Town by reason of the breach of this Agreement. Grantee’s maintenance of the security required herein or by applicable code shall not be construed to excuse unfaithful performance by the Grantee of this Agreement; to limit liability of the Grantee to the amount of the security; or to otherwise limit the Grantor’s recourse to any other remedy available at law or equity. 15.4 Revocation (A) This Agreement may be revoked and all rights and privileges rescinded if a material breach of the Agreement is not cured pursuant to Section 15.1, or in the event that the following are not cured pursuant to Section 15.1: (1) Grantee fails to perform any material obligation under this Agreement; (2) Grantee attempts to evade any material provision of this Agreement or to practice any fraud or deceit upon the Grantor or Subscribers; (3) Grantee makes a material misrepresentation of fact in the negotiation of this Agreement; (4) Grantee fails to maintain the required Customer service location; (5) Grantee abandons the System, or terminates the System’s operations; (6) Grantee fails to restore service to the System after three consecutive days of an outage or interruption in service; except in the case of an emergency or during a force majeure occurrence, or when approval of such outage or interruption is obtained from the Grantor, it being the intent that there shall be continuous operation of the System; or (7) Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt, there is an assignment for the benefit of Grantee’s creditors, or all or part of the Grantee’s System is sold under an instrument to secure a debt and is not redeemed by Grantee within thirty (30) days from said sale. (B) Additionally, this Agreement may be revoked one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business 42 of the Grantee whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless: (1) The receivership or trusteeship is vacated within one hundred twenty (120) days of appointment; or (2) The receivers or trustees have, within one hundred twenty (120) days after their election or appointment, fully complied with all the material terms and provisions of this Agreement, and have remedied all material defaults under the Agreement. Additionally, the receivers or trustees shall have executed an agreement duly approved by the court having jurisdiction, by which the receivers or trustees assume and agree to be bound by each and every term and provision of this Agreement. (C) If there is a foreclosure or other involuntary sale of the whole or any part of the plant, property and equipment of Grantee, Grantor may serve notice of revocation on Grantee and to the purchaser at the sale, and the rights and privileges of Grantee under this Agreement shall be revoked thirty (30) days after service of such notice, unless: (1) Grantor has approved the transfer of the Agreement, in accordance with the procedures set forth in this Agreement and as provided by law; and (2) The purchaser has covenanted and agreed with Grantor to assume and be bound by all of the terms and provisions of this Agreement. (D) Following the procedures set forth in this Agreement, and prior to forfeiture or termination of the Agreement, the Town shall give written notice to the Grantee of its intent to revoke the Agreement. The notice shall set forth the nature of the noncompliance. (E) Any proceeding under the Subsection (D) above shall be conducted by the Town Board and open to the public. Grantee shall be afforded at least thirty (30) days prior written notice of such proceeding. (1) At such proceeding, Grantee shall be provided a fair opportunity for full participation, including the right to be represented by legal counsel, to introduce evidence, and to call and question witnesses. A complete verbatim record and transcript shall be made of such proceeding and the cost of the record and transcript shall be borne by Grantee. The Town Board or its designee shall hear any Persons interested in the revocation, and shall allow Grantee, in particular, an opportunity to state its position on the matter. (2) Within ninety days after the hearing, the Town Board shall determine whether to revoke the Agreement and declare that the Agreement is revoked; or if the breach at issue is capable of being cured by Grantee, direct Grantee to take appropriate remedial action within the time and in the manner and on the terms and conditions that the Town Board or its designee determines are reasonable under the circumstances. If the Town determines that the Agreement is to be revoked, the Town shall set forth the reasons for such 43 a decision and shall transmit a copy of the decision to the Grantee. Grantee shall be bound by the Town’s decision to revoke the Agreement unless Grantee appeals the decision to a Court of competent jurisdiction within sixty (60) days of the date of the decision. (3) Grantee shall be entitled to such relief as the Court may deem appropriate. Nothing contained in this Section shall be deemed a waiver of Grantee’s or Grantor’s rights or protections existing under State or Federal law. (4) The Town Board may in its sole discretion take any lawful action which it deems appropriate to enforce the Town’s rights under the Agreement in addition to revocation of the Agreement. 15.5 Removal (A) In the event of lawful termination, expiration, revocation or lawful nonrenewal of this Agreement, and after all appeals from any judicial determination are exhausted and final, Grantor may order the removal of the System facilities from the Agreement Area at Grantee’s sole expense within a reasonable period of time (not to exceed 180 days) as determined by Grantor. In removing its plant, structures and equipment, Grantee shall refill, at its own expense, any excavation that is made by it and shall leave all Rights-of-Way, public places and private property in a condition reasonably comparable to the condition as that prevailing immediately prior to Grantee’s removal of its equipment. (B) If Grantee fails to complete any required removal to the satisfaction of Grantor, Grantor may after written notice to Grantee cause the work to be done, and Grantee shall reimburse Grantor for the reasonable costs incurred within thirty (30) days after receipt of an itemized list of Grantor’s expenses and costs, or Grantor may recover its expenses and costs from the security, or pursue any other judicial remedies for the collection thereof. SECTION 16. ABANDONMENT If the Grantee abandons its System during the Agreement term, or fails to operate its System in accordance with any duty to provide continuous service to Subscribers or the Town or Schools as required herein, the provisions of this Agreement and the Town Code shall apply and the Grantor, at its option, may operate the System or; designate another entity to operate the System temporarily until the Grantee restores service under conditions acceptable to the Grantor, or until the Agreement is revoked and a new cable operator is selected by the Grantor. If the Grantor designates another entity to operate the System, the Grantee shall reimburse the Grantor for all reasonable costs, expenses and damages incurred, including reasonable attorney fees, court expenses and attributed expenses for work conducted by Grantor’s staff or authorized agents. SECTION 17. AGREEMENT RENEWAL 44 (A) The Grantor and Grantee agree that any proceedings undertaken by Grantor that relate to the renewal of the Agreement shall be governed by and comply with the provisions of Section 626 of the Cable Act, unless the procedures or substantive protections set forth therein shall be deemed to be preempted and/or superseded by the provisions of any subsequent provision of Federal law. (B) In addition to the procedures set forth in said Section 626(a), Grantor agrees to notify Grantee of the completion of its assessments regarding the identification of future cable-related community needs and interests, as well as the past performance of Grantee under the then current Agreement term. Notwithstanding anything to the contrary set forth herein, Grantee and Grantor agree that at any time during the term of the then current Agreement, while affording the public adequate notice and opportunity for comment, Grantor and Grantee may agree to undertake and finalize negotiations regarding renewal of the then current Agreement and Grantor may grant a renewal thereof. Grantee and Grantor consider the terms set forth in this subsection to be consistent with the express provisions of Section 626 of the Cable Act. SECTION 18. AGREEMENT TRANSFER Transfer of Ownership or Control (A) The Cable System and this Agreement shall not be sold, assigned, transferred, leased or disposed of, either in whole or in part, either by involuntary sale or by voluntary sale, merger or consolidation; nor shall title thereto, either legal or equitable, or any right, interest or property therein pass to or vest in any Person or entity without the prior written consent of the Grantor, which consent shall be by the Town Board, acting by ordinance or resolution which consent shall not be unreasonably withheld. (B) The Grantee shall promptly notify the Grantor of any actual or proposed change in, or transfer of, or acquisition by any other party of control of the Grantee. The word “control” as used herein is not limited to majority stockholders but includes actual working control in whatever manner exercised. Every change, transfer or acquisition of control of the Grantee shall make this Agreement subject to cancellation unless and until the Grantor shall have consented in writing thereto and Grantor’s consent shall not be unreasonably withheld. (C) The parties to the sale or transfer shall make a written request to the Grantor for its approval of a sale or transfer or change in control and shall furnish all information required by law and this Agreement. (D) In seeking the Grantor’s consent to any change in ownership or control, the proposed transferee or controlling entity shall indicate whether it: (1) Has ever been convicted or held liable for acts involving deceit including any violation of federal, State or local law or regulations, or is currently under an indictment, investigation or complaint charging such acts; (2) Has ever had a judgment in an action for fraud, deceit, or misrepresentation 45 entered against the proposed transferee by any court of competent jurisdiction; (3) Has pending any material legal claim, lawsuit, or administrative proceeding arising out of or involving a Cable System; (4) Is financially solvent, by submitting financial data including financial statements that are audited by a certified public accountant who may also be an officer of the transferee or controlling entity; and (5) Has the financial, legal and technical capability to enable it to maintain and operate the Cable System for the remaining term of the Agreement. (E) The Grantor shall act by ordinance or resolution on the request within one hundred twenty (120) days of the request provided it has received all information required by law such as a complete FCC Form 394 application, provided it has received a complete application. Subject to the foregoing, if the Grantor fails to render a final decision on the request within one hundred twenty (120) days, such request shall be deemed granted unless there is a mutually agreed to extension of time. (F) Within thirty (30) days of any transfer or sale or change in control, if approved or deemed granted by the Grantor, Grantee shall file with the Grantor a redacted copy of the deed, agreement, lease or other written instrument evidencing such sale or transfer of ownership or control, certified and sworn to as correct by Grantee and the transferee or controlling entity, and the transferee or controlling entity shall file its written acceptance agreeing to be bound by all of the provisions of this Agreement, subject to applicable law. In the event of a change in control, in which the Grantee is not replaced by another entity, the Grantee will continue to be bound by all of the provisions of the Agreement, subject to applicable law, and will not be required to file an additional written acceptance. The approval of any change in control shall not be deemed to waive any rights of Grantor to subsequently enforce noncompliance issues relating to this Agreement. For purposes herein to the extent that a change of control involves an entity that was not an Affiliate prior to the contemplated transaction, the Town’s consent shall be required for such change in control. (G) In reviewing a request for sale or transfer or change in control, the Grantor may inquire into the legal, technical and financial qualifications of the prospective controlling party or transferee, and Grantee shall assist the Grantor in so inquiring. The Grantor may condition said sale or transfer or change in control upon such terms and conditions as it deems reasonably appropriate consistent with applicable law, provided, however, any such terms and conditions so attached shall be related to the legal, technical and financial qualifications of the prospective controlling party or transferee and to the resolution of outstanding and unresolved issues of noncompliance with the terms and conditions of this Agreement by Grantee. (H) Notwithstanding anything to the contrary in this subsection, the prior approval of the Grantor shall not be required for any sale, assignment or transfer or change in control of the Agreement or Cable System to an Affiliate provided that the 46 proposed assignee or transferee or new controlling entity must show financial responsibility as may be determined necessary by the Grantor and must agree in writing to comply with all of the provisions of the Agreement. Further, Grantee may pledge the assets of the Cable System for the purpose of financing without the consent of the Grantor; provided that such pledge of assets shall not impair or mitigate Grantee’s responsibilities and capabilities to meet all of its obligations under the provisions of this Agreement. SECTION 19. PROHIBITED PRACTICES AND NOTICES 19.1 Preferential or Discriminatory Practices Prohibited Throughout the term of this Agreement, Grantee shall fully comply with all equal employment and non-discrimination provisions and requirements of federal, State and local laws, and rules and regulations relating thereto. 19.2 Notices Unless otherwise expressly agreed between the parties, all notices required to be given under this Agreement shall be in writing and shall be deemed to be given when deposited in a correctly addressed envelope via U.S. Mail (with receipt deemed if sent via regular mail within 5 business days after having been posted in the regular mail) or upon receipt when hand delivered or with Federal Express, UPS or similar service with receipt/acknowledgement or upon receipt when sent Certified Mail or Registered Mail. Throughout the term of this Agreement, each party shall maintain and file with the other a local address for the service of notices by mail. All notices shall be sent to such respective address. At the effective date of this Agreement: Grantee’s address shall be: Baja Broadband Operating Company, LLC 1061-521 Corporate Center Drive, Suite 100 Ft. Mill, South Carolina 29707-7150 Attention: VP Regulatory Affairs Grantor’s address shall be: Town Administrator Town of Estes Park Colorado 170 MacGregor Avenue Estes Park, CO 80517 With a Copy to: Greg White, Esq. Town Attorney 1423 West 29th Street Loveland, CO 80538 The Grantor and Grantee may designate such other address or addresses from time to time by giving notice to the other in the manner provided for in this subsection. 47 SECTION 20. MISCELLANEOUS PROVISIONS 20.1 Cumulative Rights Subject to applicable law and consistent with the terms of this Agreement, all rights and remedies given to the Town by this Agreement or retained by the Town herein shall be in addition to and cumulative with any and all other rights and remedies, existing or implied, now or hereafter available to the Town, at law or in equity, and such rights and remedies shall not be exclusive, but each and every right and remedy specifically given by this Agreement or otherwise existing or given may be exercised from time to time and as often and in such order as may be deemed expedient by the Town and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. 20.2 Costs to be Borne by Grantee Grantee shall pay for costs of publication of this Agreement and all Notices prior to any public meeting or hearing provided for or in connection with this Agreement if such publication or notices are required by a Generally Applicable Town Ordinance or applicable law. 20.3 Binding Effect This Agreement shall be binding upon the parties hereto, their permitted successors and assigns. 20.4 Authority to Amend This Agreement may be amended at any time by mutual written agreement between the parties. 20.5 Venue The venue for any dispute related to this Agreement shall be in the United States District Court for the District of Colorado or in the District Court in Larimer County, Colorado. 20.6 Governing Laws This Agreement shall be governed, construed and enforced in accordance with the laws of the State of Colorado (as amended), the Cable Act as amended, any applicable rules, regulations and orders of the FCC, and any other applicable local (consistent with the terms of this Agreement), State and federal laws, rules, regulations, legislation or orders (as such now exist, are later amended or subsequently adopted). Nothing contained herein shall be deemed a waiver of any rights or protections of Grantor or Grantee existing under such laws or regulations. 20.7 Captions The captions and headings of this Agreement are for convenience and reference purposes only and shall not affect in any way the meaning or interpretation of any provisions of this Agreement. 20.8 No Joint Venture Nothing herein shall be deemed to create a joint venture or principal-agent relationship 48 between the parties, and neither party is authorized to, nor shall either party act toward third persons or the public in any manner that would indicate any such relationship with the other. 20.9 Waiver The failure of either party at any time to require performance by the other of any provision hereof shall in no way affect the right of the other party hereafter to enforce the same. Nor shall the waiver by either party of any breach of any provision hereof be taken or held to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself or any other provision. 20.10 Severability If any Section, subsection, paragraph, sentence, clause, phrase, term or provision of this Agreement is for any reason determined to be illegal, invalid or unconstitutional by any Court or agency of competent jurisdiction, such shall be deemed separate, distinct and independent and such determination shall have no effect on the validity of any other Section, subsection, paragraph, sentence, clause, phrase, term or provision of this Agreement, all of which will remain in full force and effect for the term of the Agreement. 20.11 Force Majeure The Grantee shall not be held in default under, or in noncompliance with, the provisions of this Agreement, nor suffer any enforcement or imposition of damages relating to noncompliance or default, where such noncompliance or alleged defaults occurred or were caused by circumstances reasonably beyond the ability of the Grantee to control, including, but not limited to, war or riots, civil disturbances, floods or other severe or unusual weather conditions or natural catastrophes, labor stoppages, slow downs, power outages exceeding back-up power supplies or work delays caused by waiting for utility providers to service or monitor their utility poles to which the Grantee’s Cable System is attached. 20.12 Entire Agreement Except as provided in Section 2.4(C), the Permit shall be of no further force or effect and this Agreement and Exhibit represent the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersede all prior oral and written negotiations between the parties. 20.13 Attorneys’ Fees If any action or suit arises in connection with this Agreement, the prevailing party (either the Town or Grantee, as the case may be) shall be entitled to recover all of its reasonable attorneys’ fees, costs and expenses in connection therewith, in addition to such other relief as the court may deem proper. 20.14 Action of the Town or Grantee In any action by the Town or Grantee mandated or permitted under the terms hereof, it shall act in a reasonable, expeditious and timely manner. Furthermore, in any instance where approval or consent is required under the terms hereof, such approval or consent 49 shall not be unreasonably withheld unless otherwise specified herein. 20.15 Authorization Each of the undersigned represents and warrants that he or she is duly and properly authorized to sign on behalf of their respective entity. IN WITNESS WHEREOF this Agreement is signed in the name of The Town of Estes Park, Colorado this 11th day of December , 2012. TOWN OF ESTES PARK, COLORADO By ____________________________ Title _____________________________ ATTEST: Town Clerk Estes Park, Colorado Clerk and Recorder APPROVED AS TO FORM Town Attorney Accepted and approved this day of , 2012. BAJA BROADBAND OPERATING COMPANY, LLC By _____________________________________________ Title ___________________________________________ 50 EXHIBIT I CUSTOMER SERVICE STANDARDS SECTION 1. POLICY. Grantee should be permitted the option and autonomy to first resolve citizen complaints without delay and interference from the Town. Where a given complaint is not addressed by Grantee to the citizen’s satisfaction, the Town may intervene, if requested to do so by the citizen. These Standards are intended to be of general application; however, Grantee shall be relieved of any obligations hereunder if it is unable to perform due to circumstances beyond its reasonable control, such as a region-wide natural emergency or in the event of force majeure (as defined in Section 20.11 of the Agreement) affecting a significant portion of the Town. Grantee is free to exceed these Standards to the benefit of its Customers and such shall be considered performance for the purposes of these Standards. Grantee is responsible to the Town to insure that its agents, contractors and subcontractors comply with all applicable provisions of these Standards. SECTION 2. DEFINITIONS When used in these Customer Service Standards (the “Standards”), the following words, phrases, and terms shall have the meanings given below. 2.1 “Cable Service” shall mean the one-way transmission to Customers of video programming or other programming service, and Customer interaction, if any, which is required for the selection or use of such video programming or other programming service. 2.2 “Cable System” shall mean any facility including that of Grantee consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide Cable Service which includes video programming and which is provided to multiple Customers within a community, but such term does not include (A) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (B) a facility that serves Customers without using any right-of- way; (C) a facility of a common carrier which is subject in whole or in part to the provisions of Title II of the Federal Communications Act (47 U.S.C. 201, et. seq.), except that such facility shall be considered a Cable System (other than for purposes of Section 621(c) (47 U.S.C. 541(c)) to the extent such facility is used in the transmission of video programming directly to Customers, unless the extent of such use is solely to provide interactive on- demand services; (D) an open video system that complies with federal statutes, or (E) any facilities of any electric utility used solely for operating its electric utility systems. 2.3 “Customer” shall mean any person who lawfully receives within the Town, Cable Service from Grantee with Grantee’s express permission. 51 2.4 “Customer Service Representative” (or “CSR”) shall mean any person employed by Grantee to assist, or provide service to, Customers, whether by answering public telephone lines, writing service or installation orders, answering Customers’ questions, receiving and processing payments, or performing other Customer service-related tasks. 2.5 “Town” shall mean Estes Park, Colorado acting by and through the Town Board or its designee. The Town refers to the incorporated portions of the Town. 2.6 “Grantee” shall mean Baja Broadband Operating Company, LLC and its lawful successors and assigns and any Person, who provides Cable Services and directly or through one or more affiliates owns a significant interest in such Cable System or who otherwise controls or is otherwise responsible for through any arrangement, the management and operation of such a Cable System. 2.7 “Person” shall mean any individual, sole proprietorship, partnership, association or corporation, or any other form of entity or organization. 2.8 “Service interruption” means the loss of picture or sound on one or more cable channels. SECTION 3. CUSTOMER SERVICE. 3.1. Courtesy All employees of Grantee shall provide effective and satisfactory service in all contacts with Customers. 3.2. Accessibility; Cable System office hours and telephone availability (A) Grantee shall maintain a local, toll-free or collect call telephone access line which will be available to its Customers 24 hours a day, seven days a week. (1) Trained company representatives will be available to respond to Customer telephone inquiries during Normal Business Hours. (2) After Normal Business Hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained company representative on the next business day. (B) Under Normal Operating Conditions, if a Customer service telephone call is answered with a recorded message providing the Customer with various menu options to address the Customer’s concern, the recorded message must provide the Customer with the option to connect to and speak with a Customer Service Representative (CSR) within ninety (90) seconds of the commencement of the recording. From the time a Customer chooses a menu option to speak directly with a CSR, the answer time by a CSR, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met 52 no less than seventy five (75) percent of the time under Normal Operating Conditions, measured on a quarterly basis. (C) Grantee will not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards set forth above, unless a historical record of complaints indicates a clear failure to comply. (D) Under Normal Operating Conditions, the Customer will receive a busy signal less than three (3) percent of the time. This standard shall be met seventy five percent (75%) or more of the time measured quarterly. (E) A Customer service center shall be provided and be open for business as set forth in the Agreement. 3.3. Responsiveness; installations, outages and service calls (A) Under normal operating conditions, each of the following five standards will be met no less than seventy-five (75) percent of the time measured on a quarterly basis: (1) Standard installation will be performed within seven (7) business days after an order has been placed unless the Customer agrees to a later date for installation. “Standard” installations are those that are located up to 125 aerial feet or sixty (60) underground feet from the existing distribution system provided that this does not require extensive boring or the use of costly construction equipment. (2) Excluding conditions beyond the control of a Grantee, Grantee will begin working on “service interruptions” promptly and in no event later than 24 hours after the interruption becomes known. Grantee must begin actions to correct other service problems the next business day after notification of the service problem. (3) The “appointment window” alternatives for installations, service calls, and other installation activities will be either a specific time or, at maximum, a four- hour time block during Normal Business Hours. For purposes herein, “Normal Business Hours” shall be between 8:00 A.M. to 5:00 P.M., Monday through Friday. Grantee may schedule service calls and other installation activities outside of Normal Business Hours for the express convenience of the Customer. (4) Grantee may not cancel an appointment with a Customer after the close of business on the business day prior to the scheduled appointment unless an emergency exists. (5) If Grantee’s representative is running late for an appointment with a Customer and will not be able to keep the appointment as scheduled, the Customer will be contacted. The appointment will be rescheduled, as necessary, at a time mutually agreed upon by the Customer and the Grantee for the convenience of the Customer. (B) Grantee shall provide clear television reception that meets technical standards established by the United States Federal Communications Commission (the 53 “FCC”). Grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Scheduled interruptions shall be preceded by notice, and to the extent reasonably possible, and shall occur during periods of minimum use of the System, preferably between midnight and six a.m. (6:00 a.m.). (C) Grantee’s Customer Service Representative shall have the authority to provide credit for interrupted service, to waive fees, and to schedule service appointments where appropriate. (D) Billings, refunds and credits. (1) Bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. In case of a billing dispute, Grantee must respond to a written complaint from a Customer within thirty (30) days. (2) Refund checks or credits will be issued promptly, but no later than either the Customer’s next billing cycle following resolution of the request or thirty (30) days, or upon the return of the equipment supplied by Grantee if service is terminated. (E) Treatment of Private Property. (1) Grantee shall keep tree trimming to a minimum; trees and shrubs or other landscaping that are damaged by Grantee, any employee or agent of Grantee during installation or construction shall be restored to their prior condition or replaced. Trees and shrubs shall not be removed without the prior permission of the owner or legal tenant of the property on which they are located. (2) Grantee shall, at its own cost and expense, and in a manner approved by the property owner, restore any property to as good condition as before the work causing such disturbance was initiated. Grantee shall repair, replace or compensate a property owner for any damage resulting from Grantee’s installation, construction, service or repair activities. (3) Except in the case of an emergency involving public safety or service interruption to a large number of Customers, Grantee shall give reasonable notice to property owners or legal tenants prior to entering upon private premises. Nothing herein shall be construed as authorizing access or entry to private property, or any other property, where such right to access or entry is not otherwise provided by law, easement, and/or an agreement with the Town. For the installation of pedestals or other major construction or installation projects on private property, Grantee will use reasonable efforts to provide advance notice of work on or use of such private property. In the case of an emergency, Grantee shall attempt to contact the property owner or legal tenant in person, and shall leave a door hanger notice in the event personal contact is not made. Notwithstanding the foregoing, if another Person’s property will be affected by work requested by a Customer or potential Customer, Grantee shall endeavor to provide notice to that Person as well. 54 (4) Grantee personnel shall clean all areas surrounding any work site and ensure that all cable materials have been disposed of properly. 3.4 Services for Customers with Disabilities Grantee will use reasonable good faith efforts to meet the special needs of Customers with disabilities. 3.5 Notification to Customers (A) Grantee shall provide written information on each of the following areas at the time of installation of service, at least annually to all Customers, and at any time upon request. (1) Products and services offered; (2) Prices and options for programming services and conditions of subscription to programming and other services; (3) Installation and service maintenance policies; (4) Instructions on how to use the Cable Service; (5) Channel positions programming carried on the Cable System; and, (6) Billing and complaint procedures. (B) Customers will be notified of any changes in rates, programming services or channel positions as soon as possible in writing consistent with applicable law. Notice must be mailed to Customers a minimum of thirty (30) days in advance of such changes if the change is within the control of Grantee. In addition, Grantee shall notify Customers by mail thirty (30) days in advance of any significant changes in the other information required by Section 3.5(A). Notwithstanding any other provision herein, Grantee shall not be required to provide prior notice of any rate change that is the result of a regulatory fee or any other fee, tax, assessment, or charge of any kind imposed by any Federal or State agency, on the transaction between Grantee and the Customer. (C) All officers, agents, and employees of Grantee or its contractors or subcontractors who are in personal contact with Customers shall have identification cards bearing their name and photograph. Grantee shall account for all identification cards at all times. Every vehicle of Grantee shall be clearly visually identified to the public as working for Grantee. All CRSs shall identify themselves orally to callers immediately following the greeting during each telephone contact with the public. 3.6 Customer Privacy (A) Grantee shall not monitor cable television signals to determine the individual viewing patterns or practices of any Customer without prior written consent from that 55 Customer, except as needed to maintain System integrity or as otherwise permitted by Federal Law. (B) Grantee shall not sell or otherwise make available Customer lists or other personally identifiable Customer information without prior written Customer consent, except as otherwise permitted by Federal Law. Grantee is permitted to disclose such information if such disclosure is necessary to render, or conduct, a legitimate business activity related to a Cable Service or other service provided by Grantee to its Customers. 3.7 Safety Grantee shall install and locate its facilities, Cable System, and equipment in compliance with all federal, state, local, and company safety standards, and in such manner as shall not unduly interfere with or endanger persons or property. Whenever a Grantee receives notice that an unsafe condition exists with respect to its equipment, Grantee shall investigate such condition immediately, and shall take such measures as are necessary to remove or eliminate any unsafe condition. SECTION 4. COMPLAINT PROCEDURE 4.1 Complaints to Grantee (A) Grantee shall establish written procedures for receiving, acting upon, and resolving Customer complaints, and crediting Customer accounts and shall publicize such procedures through printed documents at Grantee’s sole expense consistent with Section 3.5(A) of these Standards. (B) Said written procedures shall prescribe a simple manner in which any Customer may submit a complaint by telephone or in writing to Grantee that it has violated any provision of these Customer Service Standards, any terms or conditions of the Customer’s contract with Grantee, or reasonable business practices. (C) At the conclusion of Grantee’s investigation of a Customer complaint, but in no more than thirty (30) calendar days after receiving the complaint, Grantee shall notify the Customer of the results of its investigation and its proposed action or credit. (D) Grantee shall also notify the Customer of the Customer’s right to file a complaint with the Town in the event the Customer is dissatisfied with Grantee’s decision, and shall thoroughly explain the necessary procedures for filing such complaint with the Town. (E) Grantee’s complaint procedures shall be filed with the Town prior to implementation. 4.2 Complaints to the Town (A) Any Customer who is dissatisfied with any proposed decision of Grantee or who has not received a decision within the thirty (30) day period as required with respect to an unresolved complaint shall be entitled to have a written complaint reviewed by the Town or its designee. 56 (B) The Customer may initiate the review by filing a written complaint together with Grantee’s written decision, if any, with the Town. (C) The Customer shall make such filing and notification within thirty (30) days of receipt of Grantee’s decision or, if no decision has been provided, within forty (40) days after filing the original complaint with Grantee. The Customer shall notify Grantee that a complaint has been filed with the Town by mailing a copy of the complaint to Grantee by certified mail, return receipt requested. (D) Grantee shall file a written response to the complaint with the Town within fifteen (15) days of receipt of a copy of the complaint from the Customer. (E) If the Town or its designee decides that further evidence is warranted, the Town or its designee may require Grantee and the Customer to submit, within ten (10) days of notice thereof, a written statement of the facts and arguments in support of their respective positions. (F) Grantee and the Customer shall produce any additional evidence, including any reports from Grantee, which the Town or its designee may deem necessary to an understanding and determination of the complaint. (G) The Town or its designee shall issue a determination within fifteen (15) days after examining the materials submitted, setting forth its basis for the determination. (H) The Town or its designee may extend these time limits for reasonable cause and may intercede and attempt to negotiate an informal resolution. (I) If the Town determines that the Customer’s written complaint is valid and that Grantee did not provide the complaining Customer with the proper solution and/or credit, the Town may require Grantee to grant a specific solution in accordance with the Grantee’s credit/refund policy or resolve the matter as otherwise mutually agreed upon by the Grantee and the Town. If the Town finds that the Customer’s written complaint has no validity, the complaint shall be dismissed with no further action being taken. 4.3 Overall Quality of Service The Town may evaluate the overall quality of Customer service provided by Grantee to Customers: (A) In conjunction with any performance review provided for in the Agreement with the Town; and, (B) At any other time, at its sole discretion based on the number of written Customer complaints received by Grantee and the Town, and Grantee’s response to those complaints. 57 (C) If there is an uncured breach of a material provision of these Customer Service Standards or pattern of repeated violations of any provision of these Customer Service Standards, then the Town may require the Grantee to hire, at its expense, a qualified consultant to make an independent review of the Cable System to confirm that the Grantee and the Cable System are in substantial compliance with the terms and conditions of these Customer Service Standards as well as all FCC Technical Standards. Prior to commencement of this review, the consultant shall contact the Town and confirm any specific areas of interest by the Town which should be reviewed. Upon completion of the report, the consultant shall submit such report to the Town confirming the status of Grantee’s Cable System and setting forth any areas of noncompliance. 4.4 Non-Compliance with Customer Service Standards. Non-compliance with any provision of these Customer Service Standards is a violation of these Customer Service Standards. SECTION 5. MISCELLANEOUS 5.1 Severability Should any Section, subsection, paragraph, sentence, clause, phrase, term, or provision of these Standards be determined to be illegal, invalid, or unconstitutional by any court or agency of competent jurisdiction with regard thereto, such determination shall have no effect on the validity of any other Section, subsection, paragraph, sentence, clause, phrase, term, or provision of these Standards, each of the latter of which shall remain in full force and effect. 5.2 Non-Waiver Failure to enforce any provision of these Standards shall not operate as a waiver of the obligations or responsibilities of Grantee under said provision, or any other provision of these Standards. Page 1 Town Attorney Memo To: Honorable Mayor Pinkham Board of Trustees From: Gregory A. White, Town Attorney Date: December 3, 2012 RE: Resolution No. 20-12 Pole License Agreement - Baja Background: Baja Broadband Operating Company, LLC is the current Franchisee under the Cable Television Permit Agreement dated July 27, 1993, as amended. Baja and Town representatives have negotiated a new proposed Cable Television Agreement which will be reviewed by the Town Board on December 11, 2012. This proposed License Agreement for the use of Town utility poles between Baja and the Town provides for a non-exclusive right of Baja to make attachment of its facilities to Town owned poles. A summary of the terms and conditions of the proposed License Agreement is as follows: 1. Term. The term is ten years which is the same period as the proposed Cable Television Agreement. 2. Pole Attachments. The Agreement provides Baja with the right to attach its facilities to Town owned poles only. Use and attachment to any other Town facilities are subject to separate written agreement between the parties. 3. License non-exclusive. Baja’s license is non-exclusive and the Town has and may enter into other pole license agreements with third parties. 4. Usage Rate. For 2012 – 2013, the usage rate shall be $3 per pole; 2014 shall be $3.25 per pole; 2015 shall be $3.50 per pole; and 2016 shall be $4.00 per pole through the remaining term of the Agreement. 5. Other costs. Baja is responsible for costs incurred by the Town with regard to use of the Town’s poles by Baja. 6. Safety. The License Agreement addresses safety concerns for pole attachments including recognition that the primary purpose of Town’s poles is for electric distribution. 7. Construction. The License Agreement addresses construction and relocation of attachments by either the Town and/or the Licensee or by a third party. 8. Liability, Indemnity, and Insurance. The License Agreement addresses liability, indemnity, and insurance requirements of Licensee for attachment to the Town poles. 9. System-wide Inventory. The License Agreement provides that the Town may conduct a system-wide inventory of its poles and attachments to its poles. Resolution No. 20-12 approves the License Agreement with Baja. Budget: Revenue to the Town’s Light and Power Department from this License Agreement is substantially similar to current revenue received by the Light and Power Department. Revenue will increase in subsequent years pursuant to the stepped up usage charge. Staff Recommendation: The Town retained River Oaks Communications Corporation to represent the Town in the negotiations of this new Pole Attachment Agreement. River Oaks Communications has stated to Town Staff that this new Agreement is a modern and favorable Agreement and has recommended that the Town Board approve this Agreement. Based upon River Oaks Communications’ recommendation and Town Staff experience with Baja, Staff recommends approval of Resolution No. 20-12. Sample Motion: I move to approve/deny Resolution No. 20-12. RESOLUTION NO. 20-12 APPROVING A LICENSE AGREEMENT FOR USE OF THE TOWN’S UTILITY POLES WHEREAS, Baja Broadband Operating Company, LLC (“Baja”) is the current Franchisee pursuant to the terms and conditions of the Cable Television Permit Agreement dated July 27, 1993, including all amendments; and WHEREAS, Baja is a successor to Electronic Endeavor, Incorporated, a licensee for use of poles owned by the Town and located within the Town’s Light and Power service area; and WHEREAS, Baja desires to provide cable, internet, telephone, and other lawful communication services within the Town; and WHEREAS, the Town Board has approved a Cable Television Agreement granting Baja the non-exclusive right to provide cable services within the Town for a period of ten years; and WHEREAS, Baja and the Town have negotiated a new License Agreement for the use of utility poles owned by the Town; and WHEREAS, the Town Board has determined to grant Baja a non- exclusive license to use the Town’s poles pursuant to the terms and conditions set forth in the License Agreement. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK as follows: 1. The Board of Trustees hereby approves the License Agreement for the use of utility poles between the Town of Estes Park, Colorado and Baja Broadband Operating Company, LLC as more fully set forth on Exhibit A, attached hereto and incorporated herein by reference. 2. The appropriate officials of the Town of Estes Park are hereby authorized to execute the License Agreement. PASSED AND ADOPTED at a regular meeting this ____ day of ____________, 2012. Mayor ATTEST: Town Clerk 1 LICENSE AGREEMENT FOR THE USE OF UTILITY POLES BETWEEN THE TOWN OF ESTES PARK, COLORADO AND BAJA BROADBAND OPERATING COMPANY, LLC This License Agreement for the Use of Utility Poles (“Agreement”) is entered into this 11th day of December, 2012 by and between the Town of Estes Park (“Town”) and Baja Broadband Operating Company, LLC (“Licensee”). WHEREAS, Licensee desires to provide cable, internet, data transmission and other lawful communication services within the Town; and WHEREAS, Licensee will need to place and maintain cables, equipment and facilities within the Town and desires to place such cables, equipment and facilities on various Poles and easements owned by the Town; and WHEREAS, the Town is willing to grant Licensee a revocable, non-exclusive license to use certain Poles on the terms and conditions set forth in this Agreement and subject to the terms of the Town Code as it may be amended from time to time. NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein contained, the Town and Licensee do hereby mutually covenant and agree as follows: ARTICLE 1 DEFINITIONS A. Annual Usage Charge means the recurring charge that Licensee is to pay the Town annually under this Agreement for the use of the Town’s Poles. The Annual Usage Charge is in addition to any Costs and filing fees Licensee may incur during a Contract Year. To the extent lawfully permitted, the Annual Usage Charge for any Contract Year shall be the number of Poles shown on the Town’s records to exist as of December 1 of the preceding Year multiplied by the Usage Rate for the applicable Contract Year. Unless otherwise expressly provided in this Agreement, Annual Usage Charges are not refundable. B. Application means the Town prescribed application sheet, together with all required prints, maps, proposed routes, project descriptions and proposed schedules that Licensee must submit, in full, to the Town in order to request and be granted an Attachment License for a particular Pole or group of Poles. C. Attachment means any cable owned, controlled or used by Licensee, together with any associated messenger strand, guy wires, anchors and other appurtenant and incidental facilities within 12 inches of the point of attachment and affixed directly to a Pole or an attachment owned by a Third Party User, as the case may be. 2 D. Attachment License means the revocable, non-exclusive right of Licensee to make an Attachment to a Pole under this Agreement, pursuant to the Town’s approval of an Application and subject to any modifications, conditions and specifications imposed by the Town when approving the Application and all Design Documents issued by the Town with respect to the Attachment and Pole in question. An Attachment License authorizes Attachments for all lawful communications purposes. E. Cable means a conductor, wire or fiber or a bound or sheathed assembly of conductors, wires or fibers used as a wire communications or transmission medium (a bare messenger is also a Cable). F. Communications Space means the area on any given Pole, below and sufficiently remote from the Supply Space required by the National Electrical Safety Code, within which Attachments and Pole Contacts may be located. G. Contract Year means any calendar year during which this Agreement is in effect, beginning January 1 and ending December 31, except that the first Contract Year shall run from the Effective Date until December 31 of that year and the final Contract Year shall run from January 1 of that year until the date of termination. H. Contractor includes subcontractors. I. Cost means the total reasonable cost to the Town for any particular task under this Agreement that is not otherwise recovered in the Annual Usage Charge. Tasks include: reasonable labor, material, equipment usage, outside Contractor and vendor charges, overhead and general and administrative expenses. Costs may also be incurred for engineering and engineering review, Make-Ready construction, inspections and oversight, auditing and other services. Costs shall be paid by Licensee in accordance with either of the following: 1. Any advance estimate provided by the Town, in which event the Town shall have the right to refuse to incur the Costs until the estimate is paid; and/or 2. Any final invoice submitted by the Town. In the event an advance estimate was paid by Licensee for Costs, the final invoice will reflect such payment. Licensee shall be reimbursed for payment of any estimated charges that exceed actual reasonable charges incurred. J. Design Documents mean all specifications, drawings, schematics, blueprints, engineering documents and written requirements for materials, equipment, design, construction and workmanship issued by the Town to Licensee with respect to Make-Ready and installation work on a particular Attachment or Pole or group of Attachments or Poles. K. Effective Date means December 11, 2012. 3 L. Electrical Code means the National Electrical Safety Code (NESC) and the National Electrical Code (NEC). M. Filing Fee means the non-refundable fee charged to Licensee for filing an Application for an Attachment License. Filing Fees will be set by Town policy. The Filing Fee is solely to compensate the Town for reviewing and processing an Application and does not include or offset Costs or Annual Usage Charges. N. Make-Ready means all work reasonably required to accommodate Licensee’s Attachments on a Pole with respect to the Town and Third Party User needs and in compliance with the Electrical Code, generally accepted engineering and construction practices and applicable laws. O. Pole means any electric distribution pole owned by the Town that supports electric lines. Unless otherwise agreed by the Town with respect to a particular pole, the term Pole does not include street lighting, traffic signal or night watchman poles; any structure or facility within a substation; or any structure not used for electric power distribution. P. Pole Contact means the point or contiguous area on a Pole at which one or more of Licensee’s Attachments make physical contact with the Pole or a Third Party user’s Attachment. Q. Supply Space means the area on any given Pole, above the Communications Space, that is reserved for the placement of electric supply lines, electrical equipment and other Town facilities. Licensee may not place any Attachments or Pole Contacts in the Supply Space. R. Third Party User means any third party that has, or may be granted, a license or other right to attach with respect to a Pole. S. Unauthorized Attachment means an Attachment or any other affixing or placing of Licensee’s facilities onto Town property for which Licensee does not have a valid Attachment License. T. Usage Rate means, for each given Contract Year, the amount Licensee must pay the Town for each Pole. ARTICLE 2 SCOPE AND TERM OF AGREEMENT 2.1 General Purpose In accordance with the provisions of this Agreement, the Town may issue Attachment Licenses to Licensee on the terms and conditions set forth herein. Before Licensee makes any Attachment to or begins any work on a Pole, it shall file an Application and await the Town’s issuance of an Attachment License and Design Documents with respect to that particular Attachment or Pole. The Town may only deny an Attachment License with respect to any particular Pole for reasons of capacity, safety, reliability or generally-accepted engineering purposes. 4 2.2 Term The term of this Agreement is ten (10) years, beginning on the Effective Date, unless sooner terminated. Also, in addition to the foregoing, if Licensee’s cable Franchise Agreement at any time is terminated or expires under applicable law, then this Agreement shall concurrently terminate or expire. 2.3 Existing Facilities Only The Town is under no obligation to add, build, keep, maintain or replace Poles or any other facilities for the use or convenience of Licensee. The maintenance, replacement, removal, relocation or addition of Town Poles and facilities shall remain within the reasonable discretion of the Town. 2.4 Poles Only This Agreement addresses only Attachments to Town Poles. Attaching to or using other Town property and facilities, including without limitation conduits, buildings and towers, is prohibited without further written agreement by the Town. 2.5 Town Rights-of-Way Nothing in this Agreement shall be construed to grant Licensee any right or authorization to use or occupy the public streets or rights-of-way of the Town, except for the placement of Attachments on Poles or other facilities covered by this Agreement which may be located in the public streets or rights-of-way. 2.6 Private Easements Licensee understands that some Poles may be located on dedicated easements over private property that, by their terms, restrict the use of the easement to the Town for the sole purpose of electric distribution or transmission. Nothing in this Agreement shall compel the Town to extend any property rights it does not have. Nothing in this Agreement and no action by the Town shall be construed to offer, grant or approve any right or license to use such easement or to affix an Attachment to a Pole within such easement without the consent of the owner of the property to which the easement is appurtenant. The Town has no obligation to expand or obtain rights in such easement on Licensee’s behalf. It is the sole obligation of Licensee to obtain the necessary consent or additional easement rights, if any, at Licensee’s own expense. 2.7 Eminent Domain The Town is under no obligation to exercise any power of eminent domain on Licensee’s behalf. 2.8 No Property Rights In Poles All Poles shall remain the property of the Town and no payment made by Licensee shall create or vest in Licensee any ownership right, title, or interest in any Pole, but Licensee’s interest shall remain a bare license. The existence of such a license shall not in any way alter or affect the Town’s right to use, change, operate, maintain or remove its Poles and facilities as it sees fit. If the Town’s use of its Poles materially and adversely affects Licensee’s use and operation of an attachment, Licensee may, by written notice to the Town, remove its Attachments from any adversely affected Pole. Such termination shall be implemented by written notice to the Town. For each such termination, Licensee shall be entitled to a pro-rata refund of any pre-paid Annual Usage Charge attributable to the terminated Attachment. 5 2.9 License Not Exclusive Licensee acknowledges that the Town has entered into before, and may enter into in the future, similar or other agreements concerning the use of Poles by third parties, including Licensee’s competitors. Nothing in this Agreement shall be construed to limit or in any way affect the Town’s right or ability to enter into or honor other agreements, or to grant any rights, licenses or access concerning any Pole on a competitively-neutral and non- discriminatory basis. 2.10 Town Priority The primary purpose of a Pole is electric distribution, and the Town reserves to itself first priority in the use of a Pole. In the event of any actual conflict between the use of a Pole by the Town and Licensee, the use of a Pole for the distribution of electric power to the Town customers shall prevail and have priority over Licensee’s use of the Pole. The Town retains and shall have exclusive use of the Supply Space. The Town shall in good faith diligently pursue all reasonable measures to accommodate Licensee’s authorized attachments. 2.11 Discretion of the Town The Town reserves the right to deny any Application, reserve any Pole to its own use or modify any Pole if, in the Town’s reasonable judgment, there are capacity, safety, reliability or engineering reasons for such a denial. 2.12 No Cost or Expense to the Town The engineering, construction, installation, use, operation and maintenance of Licensee’s Attachments shall be at Licensee’s sole expense. Unless otherwise expressly provided, nothing in this Agreement shall be construed to require the Town to expend any funds or to incur or bear any Cost or expense. 2.13 Electric Service Requirements All electric service required by Licensee will be supplied by the Town’s Light and Power Department, and charges therefore shall be based on applicable rates. All electric service will be metered, and service to the Licensee will be extended under the prevailing rules and regulations of the Light and Power Department. ARTICLE 3 USAGE RATES AND CHARGES 3.1 Payment Due Upon Approval The Town’s approval of an Attachment License shall be conditioned on Licensee’s payment, within 30 days of approval, of the then current Usage Rate for each approved Attachment, prorated to reflect the number of months remaining in the Contract Year after the Town’s invoice, with any partial month being considered to be a full month. 3.2 Usage Rate For 2012 and 2013, the Usage Rate shall be $3.00 per Pole. The Usage Rate for 2014 shall be $3.25 per Pole, and the Usage Rate for 2015 shall be $3.50 per Pole. For the balance of the term of the Agreement starting in 2016, the Usage Rate shall be $4.00 per Pole. The Town may not charge a Usage Rate in excess of what is permitted by applicable law. 3.3 Annual Usage Charges The Town has invoiced Licensee for one-half of the Annual Usage Charge for 2012 and will invoice Licensee for the balance in January 2013. Also, 6 in January of each Contract Year (starting in 2013) and continuing thereafter until the expiration or termination of this Agreement, the Town will invoice for, and Licensee shall pay, within 45 days after receipt of the invoice, the Annual Usage Charge for the new Contract Year. 3.4 Invoice Disputes If Licensee believes in good faith that a Pole count contained in an Annual Usage Charge invoice is incorrect, it may pay the invoice under protest. To protest an invoice, Licensee must give the Town written notice of the nature of its protest no later than the due date for payment of the invoice. The parties shall promptly meet to resolve the discrepancies in their records to determine the correct Pole count. If the parties are unable to resolve a discrepancy as to the correct count, the parties shall jointly conduct a physical inventory of a statistically significant number of geographical grids or other mutually agreeable census to determine the correct count. 3.5 Adjustments If, upon resolution of a dispute between the parties under paragraph 3.4, a refund is due to Licensee, the Town shall refund the amount of the overcharge together with interest at the rate specified in paragraph 16.5 from the date of the Town’s receipt of the protested Annual Usage Charge payment. If Licensee owes additional money, a corrected invoice shall be issued by the Town for the additional Annual Usage Charge due, plus accrued interest at the rate specified in paragraph 16.5 from the due date of the original invoice. 3.6 No Allowances Unless otherwise expressly stated in this Agreement, there shall be no offsets against any sums due under this Agreement, or any other allowances, for system improvement, materials or labor supplied, upgrading, life extension or other direct or incidental benefits conferred by Licensee upon the Town. All such improvements and benefits belong solely to the Town, and the fact that such improvements or benefits may accrue shall in no way alter or affect Licensee’s obligations under this Agreement. ARTICLE 4 ATTACHMENT LICENSES 4.1 Attachment License Required Before Licensee may make any contact or Attachment or perform any work on a Pole other than inspections necessary for preparing an Attachment Application, and before Licensee may place any Attachment or other facility on the Town property or easements, Licensee must first obtain and accept an Attachment License. Licensee must have an Attachment License for each Pole to which Licensee’s Attachments are to be affixed and for each separate Attachment to the Pole. The foregoing notwithstanding, in no event shall Licensee be required to submit an Application or receive approval from the Town prior to installing a service drop on any Pole on which Licensee maintains an authorized Attachment, provided that the service drop installation conforms to any applicable technical requirements and specifications set forth in Article 5 herein, and provided further that the Licensee submits an Application for such service drop within a reasonable time thereafter. 4.2 Overlashing Licensee need not obtain an additional and separate Attachment license to overlash to an existing Licensee Attachment or Pole Contact, nor shall the Town consider such an overlashed Attachment as a separate Attachment for the purposes of assessing the Annual Usage Charge. Licensee may not allow a third party to overlash to Licensee’s 7 attachment or Pole Contact without such party first having an agreement with and Attachment License from the Town. Poles are the sole property of the Town. 4.3 Application Process The Application must be submitted in the then-approved Town format. The Application form, and all required supporting documentation and other procedures, are within the discretion of the Town and may change from time to time without prior notice. Applications made on a multiple pole or project basis are subject to further Town policies and procedures that may change from time to time without prior notice. The Town may reject entirely an incomplete Application, or it may request additional information to support the Application, in which event the requested information shall be promptly furnished. 4.4 Filing Fee The Filing Fee shall be paid at the time the Application is submitted. No Application will be considered before payment of the Filing Fee. 4.5 Approval The Town may only deny or modify any Attachment Application if, in the Town’s reasonable judgment, such denial or modification is necessary for reasons of lack of capacity, safety, reliability or engineering standards. The denial, approval or modification of an Attachment License shall be governed by the terms of this Agreement and applicable law. However, Licensee may request the Town to reconsider a denial or modification of an Attachment Application. The Town may approve an Application as submitted, approve it on a modified or conditional basis, or may deny the Application in accordance with the policies adopted by the Town. The Town may also refuse to issue an Attachment License when, based on its reasonable judgment, it determines that the space on a Pole is required for its own exclusive use or that Pole may not reasonably be arranged or replaced to accommodate Licensee’s proposed Attachment. By way of example only and not by limitation, an Application may be denied if, according to the Town’s reasonable judgment, the proposed Attachment: A. is of excessive size or weight or would otherwise subject a Town Pole to unacceptable levels of stress and cannot be replaced with a taller/stronger pole; B. would jeopardize the reliability or integrity of the electric system or of individual Poles; C. would present a safety hazard to Town employees or the public; D. would impair the Town’s ability to operate or maintain a Pole that cannot be replaced with a taller and/or stronger pole; E. would require an unacceptable change or addition to a Pole; or F. would expose the Town, its ratepayers or other users to increased liability or financial risk. 4.6 Order of Approval Applications concerning a particular Pole will be considered and acted upon by the Town in the order in which they are filed. For purposes of evaluating an Application with respect to Pole capacity and existing Third Party User Attachments, the Town 8 will consider not only all existing attachments but also all valid Attachment Licenses and reserved Town space for future uses. 4.7 Engineering When processing an Application, the Town shall have the right to perform, or have a firm retained by the Town perform, its own engineering and field evaluation, irrespective of whether Licensee has performed such services for its own benefit. Reasonable engineering and field evaluation expenses shall be paid by Licensee. The Town’s engineering requirements and determinations shall be within its reasonable discretion. The Town may consider but is not bound by Licensee’s own engineering determinations. With respect to a particular Pole, the Town’s engineering shall take into account and allow space for all Attachment Licenses which are valid for that Pole. In granting an Attachment License, the Town shall issue to Licensee the Design Documents governing the approved Attachment(s). 4.8 Attachment License Expiration All Attachment Licenses and Design Documents and any rights conferred thereunder shall expire within 45 days of issuance (or such longer period as the parties may agree to in writing), unless all Make-Ready and installation work has occurred in accordance with the Design Documents before the end of such period. If an Attachment License for a Pole expires, Licensee shall re-apply for an Attachment License before working on or making an Attachment to that Pole. ARTICLE 5 GENERAL REQUIREMENTS 5.1 Work Site Safety In performing any work on or near Poles supporting energized electric lines, Licensee, and its Contractors, agents and employees shall comply with all federal, state and local laws, rules and regulations governing work in proximity to energized electric lines, including without limitation, those promulgated by the Occupational Safety and Health Administration. 5.2 Electrical Code Licensee, and its Contractors, agents and employees, and all work, contacts and Attachments on a Pole shall at all times comply with then current Electrical Code. 5.3 Design Documents All Make-Ready, installation, and other work performed by Licensee on a Pole or Attachment shall at all times comply with the Design Documents and Town requirements. 5.4 Service Interruptions Licensee shall not cause any interruption of the Town or Third Party User services without first obtaining the Town’s express written consent. If it is necessary for the Town to de-energize any equipment or lines for Licensee’s benefit, Licensee shall reimburse the Town in full for all Costs. In the event Licensee damages any of the Town’s equipment or lines or causes any service interruption, Licensee, at its sole expense, shall immediately do all things reasonable to avoid injury and further damage, direct and incidental, resulting therefrom and shall notify the Town as soon as practicable under the circumstances. 9 5.5 Town Oversight The Town shall have the right to conduct on-site field oversight and inspections of Licensee’s Attachments, work and operations on Poles and in the Town easements. The Town shall at all times have unrestricted access to Poles and to all work sites of Licensee and Licensee’s contractors. Both the Town and the Town’s representative at any Pole site shall have complete and final authority to order the immediate suspension of Licensee’s construction or installation activities if the Town or the Town’s representative, in its reasonable judgment, determines the action to be necessary for reasons of safety, reliability, engineering, or a property owner complaint. In the event of an oral suspension order, the Town shall send written notice to Licensee within three business days after such suspension, identifying the alleged violation. Such suspension shall be in effect until such time as the Licensee cures, at Licensee’s sole Cost, the alleged violation. In no event shall the Town be responsible for any damages, losses or Costs incurred by Licensee as a result of such work stoppage. Licensee’s failure to obey a suspension order shall constitute a material breach of this Agreement. 5.6 Laws To the extent that federal or state law or the Town Code requires Licensee to possess a valid franchise or construction permit before engaging in a particular act, Licensee must comply with such requirement before beginning Make-Ready construction or installing Attachments. Nothing in this Agreement shall be construed as waiving other Town requirements or permitting the construction of facilities other than Attachments. Attachments must conform to local, state and federal law. Licensee’s use of any Pole and Licensee’s Attachments shall at all times conform to the requirements of the Town Code and the policies promulgated by the Town pursuant thereto. 5.7 Other Permits Licensee shall apply for and obtain all licenses, permits or other authorizations required to provide its service or to use, operate or maintain its Attachments. 5.8 Taxes and Liens Licensee shall pay all taxes and assessments lawfully levied on Licensee’s Attachments and any tax, assessments, fee, or charge levied on Poles solely because of their use by Licensee. In no event shall Licensee permit any lien to be filed or to exist upon any Poles or the Town property as a result of any claim against Licensee. Licensee shall promptly pay upon receipt of written notice from the Town all such liens together with all fees and Costs necessary to discharge same, or shall bond around such liens in the manner provided by law. 5.9 Electrical Code Conflicts In the event of a difference, conflict or discrepancy between or among the requirements or practices of any Electrical Code or safety regulations, laws or industry standards, the following rules shall apply: (A) if one specification or practice is more stringent than the other, the more stringent shall apply; (B) if one is not more stringent than the other, the NESC shall govern to the extent permitted by law; (C) if the first two rules are insufficient to resolve the conflict in a clear and unambiguous manner, the Town shall determine which standard shall apply, giving highest priority to safety considerations. 5.10 Design Document Conflicts In the event Licensee believes a Design Document is inconsistent with the Electrical Code or applicable law, Licensee shall refer the matter to the Town for its reasonable review. 10 ARTICLE 6 MAKE-READY CONSTRUCTION PART A – GENERAL PROVISIONS 6.1 Performance of Make-Ready Work The Town shall be under no obligation to change, modify or replace any Pole to accommodate Licensee. If, however, the Town elects, in its reasonable discretion, to change, modify or replace a Pole or any existing attachments to accommodate a proposed Attachment, all Make-Ready Costs necessary to accommodate the attachment shall be borne solely by Licensee, including without limitation, Costs of planning, engineering, construction and Pole replacement. The Town may in its sole discretion: A. opt to perform the necessary Make-Ready work itself, in which case Part B of this Article 6 shall apply, though in no event shall this Agreement be construed to require the Town to undertake Make-Ready construction, or B. opt to authorize Licensee or another applicant to perform the necessary Make-Ready work, in which case Part C of this Article 6 shall apply. 6.2 Third Party Facilities Make-Ready Costs that are to be paid by Licensee include all Costs and expenses to relocate or alter the attachments or facilities of any preexisting Third Party User as may be necessary to accommodate Licensee’s Attachment, but, if a Third- Party User benefits from the Make-Ready work, Licensee may charge the third-party a pro-rata portion of the make-ready costs. Licensee shall provide at least 30 days notice to each Third Party User of its intent to relocate or alter their facilities and make all other necessary arrangements directly with the affected Third Party User. PART B – CONSTRUCTION BY THE TOWN 6.3 Scope This Part B of Article 6 shall apply only in the event the Town has opted to perform the Make-Ready work on a Pole. 6.4 Construction If Licensee’s proposed Attachment necessitates changes in or additions to a Pole or the relocation or modification of the Town or Third Party User facilities on a Pole, and the Town opts in its reasonable discretion to perform the necessary Make-Ready work, the Town shall, within fourteen (14) days after completing the pole survey, submit to Licensee an estimate of the Cost for such Make-Ready work and an estimated completion date. Licensee shall have fourteen (14) days to accept the tendered estimate. Upon receipt of Licensee’s approval of the Cost estimate, the Town shall make a good faith effort to proceed with the work in substantial compliance with the proposed schedule. In no event, however, shall the Town be liable to Licensee or any other person for failure to complete the work in accordance with the proposed schedule, but if it cannot perform the work on or within 45 days of notifying Licensee of its intent to perform the work, Licensee may perform the make- ready work pursuant to Article 6.1.B. 11 6.5 Cost Allocation for Multiple Applications Notwithstanding any other provision of this Agreement, if another entity files an Application concerning the same Pole within 30 days before or after Licensee’s Application, the Town shall equitably divide the engineering and Make-Ready and Pole replacement Costs incurred to accommodate all approved Attachments, taking into account the order in which the Applications were filed and the Costs occasioned by each applicant. PART C – CONSTRUCTION BY LICENSEE 6.6 Scope This Part C of Article 6 shall apply only in the event Licensee has been given approval by the Town to perform Make-Ready work on a Pole. 6.7 Construction All work performed by or on behalf of Licensee pursuant to an Attachment License shall be done in a good and workmanlike manner. Licensee’s acceptance of an Attachment License constitutes Licensee’s agreement to be bound by its terms and conditions. All Attachments, contacts, Make-Ready work and other work performed or maintained by Licensee on a Pole shall comply with Electrical Code, the Design Documents and other laws and standards as provided in this Agreement. Any deviation shall constitute a material default under this Agreement which Licensee will be afforded a reasonable opportunity to cure. If Licensee does not cure the default within a reasonable time the Town may pursue other remedies available to it. 6.8 Pole Replacement The Town retains reasonable discretion to determine when it is reasonably necessary to replace a Pole and to determine the maximum height a Pole may reach. Pole replacement Costs shall be borne by Licensee if, because of inadequate capacity, approval of Licensee’s Attachment causes the need for the replacement. 6.9 Coordination of Construction Efforts In the event multiple entities have been granted Attachment Licenses for the same Pole and a disagreement arises between them as to construction and installation schedules, the Town shall have the right to require a representative of Licensee who has authority to agree on these issues to attend a meeting called by the Town to discuss and agree on these issues. The Town’s decision on this matter shall be final and binding. 6.10 Required Authority to Proceed An Attachment License is not an authority to proceed with Make-Ready work on a Pole. Before beginning Make-Ready work on a Pole, Licensee shall give the Town not less than 14 days written notice of the Pole location, the proposed date on which work will commence and whether any electrical service interruptions or de-energizations will be required. If the Town does not approve of such date, the parties shall mutually agree on a date for construction to take place and shall make all necessary arrangements and schedules for line and equipment de-energization. Licensee shall not begin Make-Ready work without authority to proceed from the Town, and shall make a good faith effort to comply with the agreed upon construction and de-energization schedule. Licensee shall be responsible for coordinating its efforts with the Town field inspection personnel and for any actions or notifications required by the Light and Power Department. 12 6.11 Service Interruptions In the event Licensee’s Make-Ready construction efforts require a scheduled interruption in the Town or Third Party User services or otherwise require de-energization of the Town lines, time shall be of the essence. If Licensee fails to make a good faith effort to comply with the construction schedule as agreed upon pursuant to the preceding paragraph, the Town may opt to immediately revoke Licensee’s Attachment License(s) for the Poles in question and restore the interrupted power and services at Licensee’s reasonable Cost. 6.12 Contractors All work that involves moving the electric plant performed by or on behalf of Licensee pursuant to an Attachment License shall be done by a Contractor selected by Licensee. For all other work performed by or on behalf of Licensee, Licensee may use its own workers and will ensure that its workers are properly trained to work in the Communication Space. Only orderly and competent workers shall be used. Neither Licensee’s workers nor those of its Contractors may possess any weapon, or use, possess or be under the influence of any alcoholic or other intoxicating beverage, drug or controlled substance while performing any work on or around a Pole. If the Town finds any Licensee or contract worker to be incompetent, disorderly, in the possession of any weapon, in the possession of or under the influence of alcohol or drugs, Licensee shall promptly remove such worker from all work on or around Poles, and may not again use such worker on work on or around Poles. 6.13 Materials Licensee shall furnish all necessary materials and hardware, if applicable, including but not limited to: poles, crossarms, mounting hardware, guys, anchors, insulators, conductors and any associated miscellaneous hardware. All materials used by Licensee for Make-Ready work on Poles shall be new and of good quality and free from material defects. The use of attachment arms is prohibited without the Town’s prior written consent. 6.14 Licensee to Bear Costs All Costs and expenses to complete the Make-Ready construction, including the transfer of the Town facilities and Third Party User Attachments, shall be borne entirely by Licensee. 6.15 Town Property Notwithstanding paragraphs 6.13 and 6.14, all Poles, materials and equipment installed in the Make-Ready process shall become and remain the Town’s sole property, regardless of which entity procured or paid for it. Licensee shall execute any documents reasonably requested by the Town to evidence the transfer of title to such poles, materials and equipment to the Town. Licensee’s performance of Make-Ready work or payment of any Costs (A) shall in no way create or vest in Licensee any ownership right, title or interest in any Pole or electrical facilities, (B) shall not entitle Licensee to any offsets, credits, payments or income from the Town’s operation of the Pole or facilities, or (C) alter or affect the Town’s rights under this Agreement, or (D) restrict the Town’s ability to allow access to a Pole by Third Party Users. Licensee’s interest shall at all times remain a revocable license that is subject to the terms of this Agreement. 6.16 Tree Trimming Licensee shall be responsible for all tree trimming which in Licensee’s judgment is necessary for the safe and reliable installation, use and maintenance of its Attachments, and to avoid stress on Poles caused by contact between tree limbs and Licensee’s Attachments. All tree trimming shall be performed in accordance with then current Town tree- trimming policies, including without limitation, those relating to owner notification and consent. 13 Where tree trimming affects one or more other entities attaching to the poles, the cost of tree trimming, included associated administrative costs, shall be shared equally by the Town, Licensee and any other entity attaching to the pole. 6.17 Anchors and Guying Licensee shall provide all anchors and guying necessary to accommodate the additional stress and load placed upon a Pole by its Attachments. Anchors shall not be placed outside of the easement in which a Pole stands. 6.18 New Third Party Users Make-Ready Costs are to be paid by a new Third Party User to the Town, Licensee and any existing Third Party User, including all Costs and expenses to relocate or alter the Attachments or facilities of the Town, Licensee or any existing Third Party User as may be necessary to accommodate the new Third Party User’s Attachment. However, if any entity benefits from the Make-Ready work besides the new Third Party User, the new Third Party User may charge the benefited party its pro-rata portion of the make-ready costs. ARTICLE 7 INSTALLATION AND MAINTENANCE OF ATTACHMENTS 7.1 Installation Upon (A) the Town’s acceptance of the completed Make-Ready work, and (B) the Town’s receipt of full payment of all sums owing to the Town for engineering, Make-Ready and other Costs, Licensee may affix its Attachments to the Pole as set forth in the Attachment License and Design Documents. 7.2 Communication Space All Licensee Attachments and Contacts on a Pole must remain in the Communications Space, except for attachments for power supplies. Licensee operations in the Supply Space or in the space separating the Communications and Supply Space are prohibited. 7.3 Maintenance Licensee shall, at its sole expense, make and maintain its Attachments in a safe condition and in good repair, and in such a manner as to not interfere with or interrupt the Town’s lines, facilities and services or with Third Party User attachments, facilities and services. 7.4 No Damage Licensee shall not cause damage to Town or Third Party User facilities or operations. If Licensee, its Contractors, agents, employees or Attachments cause damage to facilities or operations, Licensee shall either repair or promptly reimburse the Town or the Third Party User for all loss and expense caused by such damage. If the Town causes damage to others facilities, the Town shall pay the actual cost for that damage. Both Licensee and the Town shall immediately inform the other party and all Third Party Users of any damage to their facilities. 7.5 Sag and Span Clearances Licensee shall leave proper sag in its lines and cables and shall observe the established sag of powerline conductors and other cables so that during the life of the Attachment minimum clearances are (A) achieved at Poles located on both sides of the span and (B) maintained throughout the span. A minimum clearance between surfaces must be 14 maintained between Licensee’s and others Cables at mid-span and between Licensee’s and others Attachments and Pole Contacts on the Poles. 7.6 Climbing Space An unobstructed climbing space must be maintained at all times on the face of all Poles as required by Electrical Code, as well as adequate ground access to Poles. All Attachments must be placed as to allow and maintain a clear and proper climbing space. Licensee shall place its Attachments on the same side of the Pole as the majority of existing Licensee or other attachments. 7.7 Tagging Each new Attachment shall be identified at all times by an identifying marker approved by the Town that, at a minimum, (A) is permanent in duration and not degradable by rain or sunlight and (B) has coloring and numbering or lettering unique to Licensee. ARTICLE 8 MODIFICATION OF ATTACHMENTS 8.1 No Unauthorized Modifications Except for overlashing of an existing Attachment or routine modifications as provided in Section 8.2, Licensee shall not change the type, nature or location of any Attachment or alter its use of a Pole without prior written consent of the Town. Licensee shall not construct any other or additional Attachments, except Licensee may overlash to its existing Attachment without notifying the Town or obtaining a separate Attachment License. Any Attachment changed or added in violation of this section shall be deemed to be an unauthorized Attachment. 8.2 Routine Modifications Licensee does not need Town consent for or provide it notice of changes incident to routine maintenance and repair or installations of service drops. 8.3 Town Mandated Modifications Within 45 days, or such other time period as prescribed by federal law, of written request by the Town, Licensee shall move or rearrange its Attachments in order to maximize the usable available Pole space and/or to accommodate Town facilities. Licensee shall do so at its sole cost and risk. If Licensee fails or refuses to comply with the directions of the Town to change, alter, improve, move, remove or rearrange any of its Attachments, the Town may opt to change, alter, improve, move, remove or rearrange such Attachments without incurring any liability to Licensee and at Licensee’s sole cost, or the Town may proceed under Article 10 of this Agreement. 8.4 Emergencies In case of a situation that the Town reasonably determines to be an emergency, the Town may move, rearrange or transfer Licensee’s Attachments without notice and without liability to Licensee or to any other person, in which event Licensee shall also be responsible for all Costs. 8.5 Destroyed Poles If any Pole on which Licensee has an Attachment is substantially destroyed or damaged by fire, storm, accident or otherwise, the Town shall be under no obligation to rebuild or replace such Pole, but may elect to terminate Licensee’s Attachment License for such Pole without any liability to Licensee. The Town shall notify 15 Licensee in writing of a termination under this paragraph, and Licensee shall be entitled to a pro- rata refund of any prepaid but unearned Usage Rate attributable to the Attachments on such damaged or destroyed Pole. Nothing herein shall prohibit Licensee from repairing or replacing such damaged or destroyed Poles at Licensee’s sole cost and expense if: (A) the Town elects not to repair or replace same, and (B) Licensee is permitted to do so under the Town Code and any applicable easements. 8.6 Transfers of Attachments If the Town replaces an existing Pole supporting an Attachment with a new Pole, the Town will transfer, if reasonably feasible, the Attachment to the replacement Pole when the Town transfers its own lines and facilities, unless (A) Licensee notifies the Town in writing that it does not desire to occupy the new Pole, or (B) other transfer arrangements satisfactory to the Town are made in advance. Except in circumstances that the Town reasonably determines to be an emergency, the Town shall give Licensee reasonable advance notice of Pole replacements. Failure of Licensee to timely respond to the Town’s notice shall be deemed an election to occupy the new Pole. Licensee shall pay all applicable transfer fees and costs for its facilities. If Licensee opts not to occupy the new Pole, Licensee’s Attachment License to the replaced Pole shall terminate as of the date of replacement. Licensee shall not be entitled to a refund of any Usage Rate as a result. 8.7 Underground Conversion Upon written notice, the Town may remove its facilities from a Pole and re-route through underground conduits. Licensee shall be responsible for reimbursing the Town for its pro rata share of installing and paying for the underground conduit. All of Licensee’s costs associated with such relocation underground shall be Licensee’s responsibility. The Licensee must place its facilities underground within six (6) months or sooner upon request of the Town. In such event, the Town shall be under no obligation to maintain any Poles that no longer support the Town supply lines. ARTICLE 9 INVENTORY AND INSPECTIONS 9.1 Right to Inspect The Town may inspect Licensee’s work and Attachments at any time, except that it shall not undertake a system-wide safety inspection more than once every two years. The Town may conduct these inspections for any purpose relating to this Agreement, including without limitation: (A) determining compliance with the Design Documents or other design and installation requirements; (B) determining compliance with the Electrical Code; or (3) auditing and inventorying. To the extent that the Town designates an independent contractor to perform such inventory, the Town must consult with Licensee. The Town shall provide the Licensee with a written invoice, and Licensee shall pay its pro rata share, provided that Licensee has approved such expenses in advance. The making of an inspection by the Town shall not operate in any way to relieve Licensee or Licensee’s insurers of any responsibility, duty, obligation or liability under this Agreement or otherwise, nor does the Town’s ability to make inspections relieve Licensee from its obligations to exercise due care in the installation and operation of its Attachments. 9.2 Compliance In the event any inspection of an existing Attachment reveals that corrections or other actions are required of Licensee under this Agreement, including without 16 limitation those required for reasons of safety or structural integrity, Licensee shall make such corrections or take the requested actions within a reasonable time after the date the Town sends Licensee a written notice informing Licensee of the corrections to be made. The Town may also perform such work without notice, at Licensee’s sole Cost and risk, if the Town determines in its reasonable judgment that an emergency involving public welfare or safety considerations do not permit advance written notice to Licensee. If Licensee fails or refuses to comply with the directions of the Town, the Town may opt to change, alter, improve, move, remove or rearrange such Attachments without incurring any liability to Licensee, and at Licensee’s reasonable Cost and risk, or proceed under Article 10 of this Agreement. 9.3 System-wide Inventory Not more than once in a Contract Year, the Town may, but is under no obligation to, conduct a system-wide inventory of all Licensee and Third-Party User Attachments on its Poles, for which Licensee and Third-Party Users shall bear their proportionate share of Costs. The Town will notify Licensee and Third-Party Users of the times and places of such inventory at least three months in advance, and Licensee and Third-Party Users may have representatives accompany the Town on the inventory. To the extent that the Town designates an independent contractor to perform such inventory, the Town must consult with Licensee and Third-Party Users. The Town shall provide the Licensee and Third-Party Users with written invoices, and Licensee and Third-Party Users shall pay their pro rata share. The Town may use the results of the inventory for purposes of calculating the Annual Usage Charge, but may also rely upon a statistically significant number of geographical grids or other mutually agreeable census to determine the correct count. To establish a baseline pole count, Licensee shall conduct an inventory within 6 months after execution of this Agreement, except to the extent that such date occurs after snowfall, and in such case, during the first month thereafter when such inventory is practicable. ARTICLE 10 UNAUTHORIZED ATTACHMENTS 10.1 Unauthorized Attachments Licensee shall not place any Attachments on a Pole or other Town infrastructure except as authorized by an Attachment License. If one or more Unauthorized Attachments are discovered, Licensee shall comply with this Article 10 or the Town may, but shall not be required to, remove the Unauthorized Attachment without incurring any liability to Licensee and at Licensee’s reasonable Cost. With respect to any Unauthorized Attachment, the Town may require that Licensee submit an Application for each such Unauthorized Attachment, together with the then-current Filing Fee and Usage Rate relating back to the installation of the Attachment, the last attachment inventory, or back three years, whichever is more. If such Application and charges are not received by the Town within 15 days of notice of the Unauthorized Attachment, the Town may require that Licensee remove such Unauthorized Attachment upon demand or, if Licensee fails to do so upon reasonable notice, remove such Attachment at Licensee’s sole Cost and risk. 10.2 No Ratification of Unauthorized Use No act or failure to act by the Town with respect to an Unauthorized Attachment or any other unauthorized use of the Town Poles or property shall be considered to be a ratification, licensing or permitting of the unauthorized use, irrespective of any otherwise applicable doctrine of waiver or laches. 17 ARTICLE 11 CUSTOMER INTERACTION 11.1 Purpose Licensee acknowledges that the scope of its proposed project and the amount of Make-Ready construction and Attachment installation it intends to undertake under this Agreement may require Licensee to make extensive and repeated intrusions onto the private property of Town customers in order to access Poles. The purpose of this Article is to establish minimum standards of conduct with respect to property owners and Town customers. 11.2 Owner Consent Before entering onto private property to access a Pole, Licensee shall obtain the owner’s consent. 11.3 Licensee Conduct Before engaging in Make-Ready or installation work on the property of a Town customer, Licensee shall, at minimum: A. Place hangers or fliers, explaining in general the nature, extent and purpose of the work to be done and listing Licensee’s telephone numbers and web site where additional information can be found, on the front door of each customer whose property is to be entered upon at least 48 hours prior to entry; B. Require all field crews, and those of its Contractors, to carry and distribute upon request information packets explaining in detail the nature, extent and purpose of the work being done and listing the telephone number and web site where additional information can be found; C. Establish and maintain a local call-center telephone number during all hours during which field work is being done that is staffed by knowledgeable personnel who can answer and resolve customer questions and complaints concerning the work being done on their premises; D. Require all field crews to wear ID badges and uniforms identifying themselves as employees or Contractors of Licensee; E. Have all vehicles used in field work bear Licensee’s logo; F. Require all field crews to seek permission of the premises owner before entering into a backyard; and G. Have readily available, during all hours in which field work is being done, one or more knowledgeable personnel who can communicate with and assist the Town Administrator’s Office and Town Board members regarding property owner complaints, and also have available qualified personnel to conduct on-site resolution of property owner complaints. 11.4 No Town Affiliation Licensee, and its employees, Contractors and agents shall not at any time represent themselves to the public, any Town customer or any resident as being 18 associated with, having the permission of or having been requested by the Town to be on private property. 11.5 Electrical Service Interruptions Licensee shall provide written notice to Town customers of any planned electrical service interruptions that will affect them not less than 48 hours in advance of such interruption. Such notice shall contain the specific dates and times for such interruptions and the reasons therefor. ARTICLE 12 TERMINATION 12.1 Termination of Attachment Licenses Attachment Licenses for specific Attachments shall terminate upon any of the following events or conditions: A. Licensee has not completed all necessary Make-Ready work and Attachment installation within 45 days of issuance of the Attachment License, unless Licensee and the Town agree in writing to a longer period. B. Licensee removes the Attachment other than in the course of routine maintenance or replacement. C. Licensee ceases to offer services, or provides services unlawfully, through the Attachment. D. Licensee fails to comply with any applicable provision of this Agreement. E. Licensee’s Cable Franchise in the Town is terminated. 12.2 Right of Suspension If Licensee fails either to make any payment required under this Agreement, including timely payments to Contractors for Make-Ready work, or to perform timely any material obligation under this Agreement, and such default continues for 30 days after the date the payment or performance is due, then, in addition to any other available right or remedy, the Town may, upon written notice to Licensee, immediately suspend all Attachment Licenses of Licensee hereunder until such time as the default is cured. The payment under protest of a disputed amount in order to avoid, or lift, suspension of Attachment Licenses shall not prejudice the rights of Licensee to continue the payment dispute. Licensee shall not install any new or additional Attachments or make any changes to existing Attachments (except for removal or routine repair or maintenance necessary to continue to provide services to then existing Licensee customers) during the period of suspension. 12.3 Termination of Agreement by the Town If Licensee fails either to pay any payment required under this Agreement, including timely payments to Contractors for Make- Ready Work, or timely perform any material obligation under this Agreement, and if such default has not been cured within 30 days of Licensee’s receipt of written notice of default, the Town may terminate this Agreement and all Attachment Licenses upon written notice to Licensee. Upon receipt of a notice of termination, Licensee shall promptly begin the process of 19 removing all Attachments from Poles. All such Attachments shall be removed within 45 days after the date of the notice of termination, or within such other time as the Town may agree. Until all of Licensee’s Attachments are removed, Licensee shall continue to comply with all of the terms of this Agreement and perform all of its duties and obligations hereunder, including without limitation the obligation to pay Annual Usage Charges for its Attachments. Such payment by Licensee or acceptance by the Town of Annual Usage Charges shall not act to cure the default that triggered the termination nor shall it reinstate this Agreement or Licensee’s Attachment Licenses hereunder. 12.4 Failure to Remove Attachments If Licensee has not removed all its Attachments within the period of time specified in the preceding paragraph, or such additional period of time granted by the Town in writing, then the Town may remove Licensee’s Attachments at Licensee’s sole Cost and risk. 12.5 Termination of Agreement by Licensee Licensee may terminate this Agreement upon 60 days written notice to the Town, in which event all Attachments shall be removed within 180 days after the date of the notice of termination or within such other time as the Town agrees. Until all of Licensee’s Attachments are removed, Licensee shall continue to comply with all of the terms of this Agreement and perform all of its duties and obligations hereunder, including without limitation the obligation to pay Annual Usage Charges for its Attachments. Termination by Licensee during a Contract Year shall not relieve Licensee from payment for prorated Annual Usage Charges for that Contract Year or any other sums owing the Town. ARTICLE 13 ASSIGNMENTS 13.1 Permissible Assignments Licensee may not assign or otherwise transfer this Agreement or any Attachment Licenses without the Town’s prior written consent, which consent shall not be unreasonably withheld or delayed, except that Licensee may without consent: A. transfer or assign this Agreement to an affiliate or subsidiary of Licensee to whom Licensee has been duly authorized by the Town to transfer or assign Licensee’s Cable Franchise. Licensee’s rights and obligations hereunder shall pass to such transferee or assignee only upon receipt by the Town of written notice of such transfer or assignment of the Cable Franchise; or B. mortgage any or all of its property, rights or privileges in this Agreement. 13.2 Documents for the Town In the event of a transfer or assignment of this Agreement, Licensee shall provide the Town with true and complete copies of the transfer or assignment documents; documents showing the ownership of the assignee and its relationship to Licensee, if any; a copy of the assignee’s most current audited annual financial statement; a copy of the assignee’s Cable Franchise with the Town, if any; copies of all insurance policies required by this Agreement; and such other documents or bonds as the Town may reasonably request. 20 13.3 Other Assignments Void A purported assignment or transfer made in violation of the provisions of this Article 13 shall not be binding upon the Town and shall be deemed to be a material default of this Agreement. 13.4 Partial Assignments If Licensee sells, conveys or transfers some, but not all, of Licensee’s Attachments, and such assignment complies with this Article 13, the assignee must nonetheless obtain a separate agreement from the Town for the assignee’s Attachments in accordance with Town policies, rules and regulations in effect at that time. Until the assignee executes a separate agreement, the assignment is not binding upon the Town and the assignee’s Attachments shall continue to be deemed to be the Attachments of Licensee for all purposes hereunder, including billing and payment of Annual Usage Charges. ARTICLE 14 LIABILITY AND INDEMNITY 14.1 Limitation on Liability NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES ARISING IN CONNECTION WITH THE USE OF OR DAMAGE TO EITHER PARTY’S FACILITIES. 14.2 No Warranties by the Town Licensee is expected to inspect the Poles on which its Attachments will be placed and shall rely solely on such inspection to determine the suitability of the Poles for its purposes. THE TOWN DOES NOT MAKE, AND HEREBY EXPRESSLY DISCLAIMS, ANY EXPRESS OR IMPLIED WARRANTIES CONCERNING ANY POLE, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. LICENSEE ACCEPTS THE USE OF ALL POLES AS IS, WHERE IS AND WITH ALL FAULTS. 14.3 Unsafe Poles Licensee acknowledges and agrees that the Town does not warrant the condition or safety of the Town’s Poles, or the premises surrounding the Poles, and LICENSEE HEREBY ASSUMES ALL RISKS OF ANY DAMAGE, INJURY OR LOSS OF ANY NATURE WHATSOEVER, COSTS AND ATTORNEYS’ FEES, CAUSED BY OR IN CONNECTION WITH LICENSEE’S OR LICENSEE’S CONTRACTORS’ USE OF THE POLES AND ASSOCIATED FACILITIES AND EQUIPMENT ON, WITHIN OR SURROUNDING THE POLES. Licensee expressly agrees that it will undertake responsibility for inspecting and evaluating the condition of any Pole before allowing any workers, whether those of Licensee or Licensee’s Contractors, to climb or otherwise work on such Pole. If Licensee discovers any Poles that are rotten or otherwise unsafe for climbing or Attachment installation, Licensee shall immediately report such unsafe condition to the Town. Licensee further acknowledges that the Town does not warrant that all Poles are properly labeled, and agrees that the Town is not liable for any injuries or damages caused by or in connection with missing labels or otherwise improperly labeled Pole. Licensee further agrees to immediately notify the Town if labels or tags are missing or otherwise improper. 21 14.4 Dangerous Nature of the Work Licensee acknowledges that in performing the work contemplated by this Agreement, Licensee and its agents, employees and Contractors will work near electrically energized lines, transformers and other electrical equipment, and it is the intention that the power flowing through such facilities will not be interrupted except by the Town. Licensee shall ensure that its employees, agents and Contractors have the necessary qualifications, skill, knowledge, training and experience to protect themselves, their fellow employees, employees of the Town and the general public from harm or injury while performing work permitted by this Agreement. In addition, Licensee shall furnish its employees, and shall require its agents and Contractors to furnish their employees, with competent supervision and sufficient and adequate tools and equipment for their work to be performed in a safe manner. Licensee further warrants that it is apprised of, conscious of and understands the imminent dangers (INCLUDING SERIOUS BODILY INJURY OR DEATH FROM ELECTROCUTION) inherent in the work necessary to make installations on the Town’s Poles by Licensee’s employees, agents and Contractors, and accepts it as its duty and sole responsibility to notify and inform Licensee’s employees, and to require its agents and Contractors to inform their employees of such dangers, and to keep them informed regarding same. 14.5 Indemnification of Town Licensee shall defend, indemnify and hold harmless the Town, and its Town Board, officials, officers, departments, agencies, representatives, employees, agents and Contractors against any and all liability, claims, costs, damages, fines, taxes, special charges by others, penalties, expenses, demands, injury to or death of any persons, lawsuits or disputes (including attorneys’ fees and all other costs and expenses of litigation) arising from or related to Licensee’s Attachments, all acts, omissions or negligence of Licensee or Licensee’s agents, Contractors or employees under this Agreement. 14.6 Governmental Immunity No provision of this Agreement is intended, or shall be construed, to be a waiver for any purpose by the Town of any immunity or law limiting municipal liability. ARTICLE 15 INSURANCE 15.1 Insurance Requirements A. General Requirement. The Licensee shall at its own expense purchase and maintain the minimum insurance required herein with companies duly franchised or licensed to do business in the State of Colorado. Said insurance shall possess a current A.M. Best, Inc. rating of A-VI or better. Said insurance shall be maintained in full force and effect until all work required to be performed under the terms of this Agreement is satisfactorily completed. Licensee solely shall be responsible for deductibles and/or self-insured retention. 22 B. Minimum Insurance Limits. Licensee must maintain during the Agreement term insurance in effect in accordance with the minimum insurance limits herein set forth by the Town. The Licensee shall provide a certificate of insurance for the following Minimum insurance limits: 1. Commercial General Liability: One Million Dollars with Two Million Dollars ($2,000,000) aggregate limit per occurrence for bodily injury, personal injury and property damage and Two million dollars ($2,000,000) products and completed operations; 2. Automobile Liability: One million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage; and 3. Employer’s Liability: One hundred thousand dollars ($100,000). 4. Workers Compensation Insurance in accordance with State law requirements. 5. Umbrella Liability Insurance: Three million dollars ($3,000,000). 6. Licensee shall be responsible for judgments, settlements, damages, costs, attorneys’ fees and expenses that exceed limits of Licensee’s insurance coverage. Endorsements. All policies shall contain, or shall be endorsed so that the Town shall be designated as an additional insured except under the Employer’s Liability and Worker’s Compensation. The insurance shall provide that the insurance shall not be cancelled or materially altered so as to be out of compliance with the requirements of this Section without thirty (30) days written notice first being given to the Town. ARTICLE 16 MISCELLANEOUS PROVISIONS 16.1 Entire Agreement This Agreement constitutes the entire understanding of the parties relating to the use of Utility Poles hereunder, and there shall be no modification hereof except in writing, signed by the parties. All previous agreements, correspondence, statements and negotiations concerning the subject matter hereof are superseded by this Agreement. 16.2 No Waiver The failure of either party to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a general waiver or relinquishment of any such terms or conditions, but the same shall be and remain at all times in full force and effect. 16.3 Applicable Law The parties hereto agree and intend that all disputes that may arise from, out of, under or respecting the terms and conditions of this Agreement, or concerning the rights or obligations of the parties hereunder, or respecting any performance or failure of performance by either party hereunder, shall be governed by the laws of the State of Colorado 23 and applicable federal laws. The parties further agree and intend that venue shall be proper and shall be exclusively in Larimer County, Colorado. 16.4 Severability If any provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions, covenants and conditions of this Agreement shall remain in full force and effect. But in such event, if either party believes in good faith that the balance of mutual benefit and obligations under the Agreement has been thereby materially impaired, such party may, upon written notice to the other party, initiate a renegotiation of the Agreement to redress such imbalance. If the parties are unable to agree upon a renegotiated Agreement within thirty days, then either party may terminate the Agreement, effective six months after giving written notice to the other party, in which event all Attachments shall be removed within 180 days after the date of the notice of termination or within such other time as the Town agrees. 16.5 Payments and Interest All payments under this Agreement shall be due within forty-five (45) days after receipt of an invoice. All unpaid balances shall accrue interest at the rate of 1% per month from the due date until paid, or the maximum rate allowed by law, whichever is greater. 16.6 Notices When notice is required to be given under this Agreement by either party, it shall be in writing, mailed or delivered to the other party at the following address or to such other address as either party may from time to time designate in writing for that purpose. All notices shall be effective upon receipt. Town of Estes Park Baja Broadband Operating Company, LLC 170 MacGregor Avenue 1061-521 Corporate Center Drive, Suite 100 P.O. Box 1200 Ft. Mill, SC 29707-7150 Estes Park, CO 80517 Attn: VP Regulatory Affairs Attn: Town Administrator 16.7 Headings The descriptive headings in this Agreement are only for the convenience of the parties and shall not be deemed to affect the meaning or construction of any provision. 24 IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives. ATTEST: TOWN OF ESTES PARK By: Town Clerk William C. Pinkham, Mayor ATTEST: BAJA BROADBAND OPERATING COMPANY, LLC By: ___________ Name: Title: Page 1 Town Attorney Memo To: Honorable Mayor Pinkham Board of Trustees From: Gregory A. White, Town Attorney Date: December 6, 2012 RE: Ordinance No. 01-13 and Resolution No.19-12 Public Service Company Natural Gas Franchise Agreement Background: Public Service Company of Colorado is the current franchisee of the Town for operation and distribution of natural gas within and through the Town. The current Franchise Agreement was approved by Ordinance No. 11-92 in November of 1992. The term of the franchise is for twenty years and expires on December 26, 2012. Article 32 of Title 31 of the Colorado Revised Statutes requires that any entity seeking this type of franchise file and publish a Notice of Application with the Town. Public Service Company of Colorado has filed its Notice of Application for a new franchise with the Town and published the Notice for a public hearing to begin the process before the Town Board on December 11, 2012. The statutory provisions require that this franchise be approved by ordinance and that the ordinance be read at a regular meeting of the Town Board and then considered, and if appropriate, adopted at a subsequent meeting of the Town Board. Ordinance No. 01-13 is before the Town Board for its consideration of granting a new natural gas franchise to Public Service Company of Colorado. Attached to Ordinance No. 01-13 as Exhibit A is the proposed Franchise Agreement between the Town and Public Service Company. It is Staff’s recommendation that Ordinance No. 01-13 be read at the December 11, 2012 meeting, as required by the statute, and the hearing on Ordinance No. 01-13 be continued until January 22, 2013. Between December 11, 2012 and January 22, 2013, Staff will have an opportunity to review the proposed Franchise Agreement, discuss any necessary changes to the Agreement with Public Service Company, and formulate recommendations to the Town Board concerning this proposed Franchise Agreement. Please note that this procedure for reviewing and, if appropriate, adopting a new Franchise Agreement for natural gas with Public Service Company is different than the procedure for approving the Cable Television Permit. The Agreement for the cable television system within the Town does not require this type of procedure pursuant to the statutory requirements. Resolution No. 19-12 extends the current Franchise Agreement between the Town and Public Service from December 26, 2012 through and including March 1, 2013. This will allow the review process for the proposed new Franchise Agreement to occur with adoption of Ordinance No.01-13 on January 22, 2013. If Ordinance No. 01-13 is adopted on January 22, 2012, the Ordinance will not be effective until thirty days after its adoption and publication. Budget: Revenue from a new Franchise Agreement will be substantially the same as the current Franchise Agreement. Staff Recommendation: Staff recommends the continuation of the review of Ordinance No.01-13 to January 22, 2013 and the adoption of Resolution No. 19-12. Sample Motion: There should be separate motions for Ordinance No. 01-13 and Resolution No. 19-12. I move to table Ordinance No. 01-13 until January 22, 2013. I move to approve/deny Resolution No.19-12. ORDINANCE NO. 01-13 AN ORDINANCE OF THE TOWN OF ESTES PARK, LARIMER COUNTY, COLORADO, GRANTING BY FRANCHISE TO PUBLIC SERVICE COMPANY OF COLORADO, ITS AFFILIATES, SUCCESSORS AND ASSIGNS, THE RIGHT TO USE THE STREETS WITHIN THE TOWN TO FURNISH, SELL, TRANSMIT AND DISTRIBUTE NATURAL GAS TO THE TOWN AND TO ALL RESIDENTS OF THE TOWN, GRANTING THE RIGHT TO ACQUIRE, CONSTRUCT, INSTALL, LOCATE, MAINTAIN, OPERATE AND EXTEND INTO, WITHIN AND THROUGH THE TOWN ALL FACILITIES REASONABLY NECESSARY TO FURNISH, SELL, TRANSMIT AND DISTRIBUTE NATURAL GAS WITHIN AND THROUGH THE TOWN. WHEREAS, on December 11, 2012, Public Service Company of Colorado filed with the Board of Trustees of the Town of Estes Park its Notice of Application for Franchise; and WHEREAS, accompanying said Notice of Application was an Affidavit of Publication indicating that the provisions of Section 31-32-102 C.R.S. had been met; and WHEREAS, this Ordinance was introduced and read at length on December 11, 2012, and January 22, 2013, at the regular meetings of the Board of Trustees of the Town of Estes Park; and WHEREAS, following the reading in full of this Ordinance, this Ordinance was published as required by the provisions of Section 31-32-103 C.R.S.; and WHEREAS, at the regular meeting of the Board of Trustees of the Town of Estes Park on January 22, 2013, this Ordinance was read in full; and WHEREAS, the Board of Trustees of the Town of Estes Park has determined that it is in its best interests of the Town and the citizens of the Town of Estes Park for the adoption of this Ordinance. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: Section 1. The Town of Estes Park, pursuant to the applicable provisions of Article 32 of Title 31, C.R.S., hereby grants a franchise to the Public Service Company of Colorado, its successors and assigns, for the right to use the streets within the Town to furnish, sell, transmit and distribute natural gas to the Town and to all residents of the Town, granting the right to acquire, construct, install, locate, maintain, operate and extend into, within and through the Town all facilities reasonably necessary to furnish, sell, transmit and distribute natural gas within and through the Town. Section 2. This Ordinance shall take effect and be in force thirty (30) days after its adoption and publication. INTRODUCED, READ, AND PASSED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK on this _______ day of ______________, 2013. TOWN OF ESTES PARK Mayor ATTEST: Town Clerk FRANCHISE AGREEMENT BETWEEN THE TOWN OF ESTES PARK, COLORADO AND PUBLIC SERVICE COMPANY OF COLORADO ARTICLE 1 DEFINITIONS ARTICLE 2 GRANT OF FRANCHISE ARTICLE 3 TOWN POLICE POWERS ARTICLE 4 FRANCHISE FEE ARTICLE 5 ADMINISTRATION OF FRANCHISE ARTICLE 6 SUPPLY, CONSTRUCTION, AND DESIGN ARTICLE 7 RELIABILITY ARTICLE 8 COMPANY PERFORMANCE OBLIGATIONS ARTICLE 9 BILLING AND PAYMENT ARTICLE 10 PURCHASE OR CONDEMNATION ARTICLE 11 TRANSFER OF FRANCHISE ARTICLE 12 CONTINUATION OF UTILITY SERVICE ARTICLE 13 INDEMNIFICATION AND IMMUNITY ARTICLE 14 BREACH ARTICLE 15 AMENDMENTS ARTICLE 16 EQUAL OPPORTUNITY ARTICLE 17 MISCELLANEOUS i TABLE OF CONTENTS ARTICLE 1 DEFINITIONS ........................................................................................... 1 §1.1 “Town” .......................................................................................................... 1 §1.2 “Company Facilities” .................................................................................... 1 §1.3 “Council” or “Town Council” ......................................................................... 1 §1.4 “Force Majeure” ........................................................................................... 1 §1.5 “Gross Revenues” ........................................................................................ 1 §1.6 “Other Town Property” ................................................................................. 2 §1.7 “Private Project” ........................................................................................... 2 §1.8 “Public Project” ............................................................................................ 2 §1.9 “Public Utilities Commission” ....................................................................... 2 §1.10 “Public Utility Easement” .............................................................................. 2 §1.11 “Relocate,” “Relocation,” or “Relocated” ...................................................... 2 §1.12 “Residents” .................................................................................................. 2 §1.13 “Streets” or “Town Streets” .......................................................................... 2 §1.14 “Supporting Documentation” ........................................................................ 2 §1.15 “Tariffs” ........................................................................................................ 3 §1.16 “Utility Service” ............................................................................................. 3 ARTICLE 2 GRANT OF FRANCHISE .......................................................................... 3 §2.1 Grant of Franchise. ...................................................................................... 3 §2.2 Conditions and Limitations. .......................................................................... 3 §2.3 Effective Date and Term. ............................................................................. 4 ARTICLE 3 TOWN POLICE POWERS ........................................................................ 4 §3.1 Police Powers .............................................................................................. 4 §3.2 Regulation of Streets or Other Town Property ............................................. 4 §3.3 Compliance with Laws ................................................................................. 4 ARTICLE 4 FRANCHISE FEE ..................................................................................... 4 §4.1 Franchise Fee. ............................................................................................. 4 §4.2 Remittance of Franchise Fee. ...................................................................... 5 §4.3 Franchise Fee Payment not in Lieu of Permit or Other Fees ....................... 7 ARTICLE 5 ADMINISTRATION OF FRANCHISE ........................................................ 7 §5.1 Town Designee ............................................................................................ 7 §5.2 Company Designee ..................................................................................... 7 §5.3 Coordination of Work. .................................................................................. 7 ARTICLE 6 SUPPLY, CONSTRUCTION, AND DESIGN ............................................. 8 §6.1 Purpose ....................................................................................................... 8 §6.2 Supply .......................................................................................................... 8 §6.3 Charges to the Town for Service to Town Facilities. .................................... 8 §6.4 Restoration of Service. ................................................................................. 8 §6.5 Obligations Regarding Company Facilities. ................................................. 8 §6.6 Excavation and Construction ..................................................................... 10 §6.7 Restoration ................................................................................................ 10 §6.8 Relocation of Company Facilities. .............................................................. 11 ii §6.9 New or Modified Service Requested by Town ........................................... 13 §6.10 Service to New Areas ................................................................................ 13 §6.11 Town Not Required to Advance Funds If Permitted by Tariffs ................... 13 §6.12 Technological Improvements ..................................................................... 13 ARTICLE 7 RELIABILITY .......................................................................................... 13 §7.1 Reliability ................................................................................................... 13 §7.2 Franchise Performance Obligations ........................................................... 13 §7.3 Reliability Reports ...................................................................................... 13 ARTICLE 8 COMPANY PERFORMANCE OBLIGATIONS ........................................ 14 §8.1 New or Modified Service to Town Facilities ............................................... 14 §8.2 Adjustments To Company Facilities ........................................................... 14 §8.3 Third Party Damage Recovery. .................................................................. 15 ARTICLE 9 BILLING AND PAYMENT ....................................................................... 15 §9.1 Billing for Utility Services. ........................................................................... 15 §9.2 Payment To Town ...................................................................................... 16 ARTICLE 10 PURCHASE OR CONDEMNATION ..................................................... 16 §10.1 Municipal Right to Purchase or Condemn. ................................................. 16 ARTICLE 11 TRANSFER OF FRANCHISE ............................................................... 17 §11.1 Consent of Town Required ........................................................................ 17 §11.2 Transfer Fee .............................................................................................. 17 ARTICLE 12 CONTINUATION OF UTILITY SERVICE .............................................. 17 §12.1 Continuation of Utility Service .................................................................... 17 ARTICLE 13 INDEMNIFICATION AND IMMUNITY ................................................... 18 §13.1 Town Held Harmless .................................................................................. 18 §13.2 Immunity .................................................................................................... 18 ARTICLE 14 BREACH ............................................................................................... 18 §14.1 Non-Contestability ..................................................................................... 18 §14.2 Breach. ...................................................................................................... 18 ARTICLE 15 AMENDMENTS .................................................................................... 20 §15.1 Proposed Amendments ............................................................................. 20 §15.2 Effective Amendments ............................................................................... 20 ARTICLE 16 EQUAL OPPORTUNITY ....................................................................... 20 §16.1 Economic Development ............................................................................. 20 §16.2 Employment. .............................................................................................. 20 §16.3 Contracting. ............................................................................................... 21 §16.4 Coordination .............................................................................................. 22 ARTICLE 17 MISCELLANEOUS ............................................................................... 22 §17.1 No Waiver .................................................................................................. 22 §17.2 Successors and Assigns ............................................................................ 22 iii §17.3 Third Parties .............................................................................................. 22 §17.4 Notice ......................................................................................................... 22 §17.5 Examination Of Records ............................................................................ 23 §17.6 List of Utility Property ................................................................................. 23 §17.7 PUC Filings ................................................................................................ 23 §17.8 Information ................................................................................................. 24 §17.9 Payment of Taxes and Fees. ..................................................................... 24 §17.10 Conflict of Interest ...................................................................................... 24 §17.11 Certificate of Public Convenience and Necessity ....................................... 24 §17.12 Authority ..................................................................................................... 25 §17.13 Severability ................................................................................................ 25 §17.14 Force Majeure ............................................................................................ 25 §17.15 Earlier Franchises Superseded .................................................................. 25 §17.16 Titles Not Controlling.................................................................................. 25 §17.17 Applicable Law ........................................................................................... 25 §17.18 Payment Of Expenses Incurred By Town In Relation To Franchise Agreement .............................................................................................................. 25 §17.19 Incremental Costs ...................................................................................... 25 §17.20 Conveyance of Town Streets, Public Easements or Other Town Property 25 1 ARTICLE 1 DEFINITIONS For the purpose of this franchise agreement (“Franchise”), the following words and phrases shall have the meaning given in this Article. When not inconsistent with context, words used in the present tense include the future tense, words in the plural include the singular, and words in the singular include the plural. The word “shall” is mandatory and “may” is permissive. Words not defined in this Article shall be given their common and ordinary meaning. §1.1 “Town” refers to the Town of Estes Park, a municipal corporation of the State of Colorado. §1.2 “Company” refers to Public Service Company of Colorado, a Colorado corporation and an Xcel Energy company and its successors and assigns including affiliates or subsidiaries that undertake to perform any of the obligations under this Franchise. §1.2 “Company Facilities” refer to all facilities of the Company reasonably necessary or desirable to provide gas service into, within and through the Town, including but not limited to plants, works, systems, transmission and distribution structures, lines, equipment, pipes, mains, conduit, underground lines, gas compressors, meters, meter reading devices, communication and data transfer equipment, control equipment, gas regulator stations and all appurtenances thereto. §1.3 “Council” or “Town Council”refers to and is the legislative body of the Town. §1.4 “Force Majeure” means the inability to undertake an obligation of this Franchise due to a cause that could not be reasonably anticipated by a party or is beyond its reasonable control after exercise of best efforts to perform, including but not limited to fire, strike, war, riots, terrorist acts, acts of governmental authority, acts of God, floods, epidemics, quarantines, labor disputes, unavailability or shortages of materials or equipment or failures or delays in the delivery of materials. Neither the Town nor the Company shall be in breach of this Franchise if a failure to perform any of the duties under this Franchise is due to a Force Majeure condition. §1.5 “Gross Revenues” refers to those amounts of money that the Company receives from the sale of gas within the Town under rates authorized by the Public Utilities Commission, as well as from the transportation of gas to its customers within the Town and those amounts of money, excluding expense reimbursements, which the Company receives from the use of Company facilities in Streets and Other Public Places (unless otherwise preempted by applicable federal or state law), as adjusted for refunds, net write-offs of uncollectible accounts, corrections, or regulatory adjustments. Regulatory adjustments include, but are not limited to, credits, surcharges, refunds, and pro-forma 2 adjustments pursuant to federal or state regulation. “Gross Revenues” shall exclude any revenues from the sale or transportation of gas to the Town. §1.6 “Other Town Property” refers to the surface, the air space above the surface and the area below the surface of any property owned by the Town or directly controlled by the Town due to the Town’s real property interest in the same or hereafter owned by the Town, that would not otherwise fall under the definition of “Streets,” but which provides a suitable location for the placement of Company Facilities as specifically approved in writing by the Town. Other Town Property does not include Public Utility Easements. §1.7 “Private Project” refers to any project which is not covered by the definition of Public Project. §1.8 “Public Project” refers to (1) any public work or improvement within the Town that is wholly or beneficially owned by the Town; or (2) any public work or improvement within the Town where fifty percent (50%) or more of the funding is provided by any combination of the Town, the federal government, the State of Colorado, any Colorado county, but excluding all entities established under Title 32 of the Colorado Revised Statutes. §1.9 “Public Utilities Commission” or “PUC” refers to the Public Utilities Commission of the State of Colorado or other state agency succeeding to the regulatory powers of the Public Utilities Commission. §1.10 “Public Utility Easement” refers to any platted easement over, under, or above public or private property, expressly dedicated to, and accepted by, the Town for the use of public utility companies for the placement of utility facilities, including but not limited to Company Facilities. §1.11 “Relocate,” “Relocation,” or “Relocated”refers to the definition assigned such terms in Section 6.8.A of this Franchise. §1.12 “Residents” refers to all persons, businesses, industries, governmental agencies, including the Town, and any other entity whatsoever, presently located or to be hereinafter located, in whole or in part, within the territorial boundaries of the Town. §1.13 “Streets” or “Town Streets” refers to the surface, the air space above the surface and the area below the surface of any Town-dedicated or Town-maintained streets, alleys, bridges, roads, lanes, access easements, and other public rights- of-way within the Town, which are primarily used for vehicle traffic. Streets shall not include Public Utility Easements and Other Town Property. §1.14 “Supporting Documentation” refers to all information reasonably required or needed in order to allow the Company to design and construct any work performed under the provisions of this Franchise. Supporting Documentation may include, but is not limited to, construction plans, a description of known 3 environmental issues, the identification of critical right of way or easement issues, the final recorded plat for the property, the date the site will be ready for the Company to begin construction, the date gas service and meter set are needed, and the name and contact information for the Town’s project manager. §1.15 “Tariffs” refer to those tariffs of the Company on file and in effect with the PUC or other governing jurisdiction, as amended from time-to-time. §1.16 “Utility Service” refers to the sale of gas to Town Residents by the Company under rates and Tariffs approved by the PUC, as well as the delivery of gas to Residents by the Company. ARTICLE 2 GRANT OF FRANCHISE §2.1 Grant of Franchise. A. Grant. The Town hereby grants to the Company, subject to all conditions, limitations, terms, and provisions contained in this Franchise, the non- exclusive right to make reasonable use of Town Streets, Public Utility Easements (as applicable) and Other Town Property: (1) to provide Utility Service to the Town and to its Residents under the Tariffs; and (2) to acquire, purchase, construct, install, locate, maintain, operate, upgrade and extend into, within and through the Town all Company Facilities reasonably necessary for the production, manufacture, sale, storage, purchase, exchange, transportation and distribution of Utility Service within and through the Town. §2.2 Conditions and Limitations. A. Scope of Franchise. The grant of the franchise shall extend to all areas of the Town as it is now or hereafter constituted that are within the Company’s PUC-certificated service territory; however, nothing contained in this Franchise shall be construed to authorize the Company to engage in activities other than the provision of Utility Service. B. Subject to Town Usage. The right to make reasonable use of Town Streets to provide Utility Service to the Town and its Residents under the Franchise is subject to and subordinate to any Town usage of said Streets. C. Prior Grants Not Revoked. This grant and Franchise is not intended to revoke any prior license, grant, or right to use the Streets, Other Town Property or Public Utility Easements and such licenses, grants or rights of use are hereby affirmed. 4 D. Franchise Not Exclusive. The rights granted by this Franchise are not, and shall not be deemed to be, granted exclusively to the Company, and the Town reserves the right to make or grant a franchise to any other person, firm, or corporation. §2.3 Effective Date and Term. A. Term. This Franchise shall take effect on ______ __, 2012, and shall supersede any prior franchise grants to the Company by the Town. This Franchise shall terminate on _______, 2032, unless extended by mutual consent. ARTICLE 3 TOWN POLICE POWERS §3.1 Police Powers. The Company expressly acknowledges the Town’s right to adopt, from time to time, in addition to the provisions contained herein, such laws, including ordinances and regulations, as it may deem necessary in the exercise of its governmental powers. If the Town considers making any substantive changes in its local codes or regulations that in the Town’s reasonable opinion will significantly impact the Company’s operations in the Town’s Streets, Public Utility Easements and Other Town Property, it will make a good faith effort to advise the Company of such consideration; provided, however, that lack of notice shall not be justification for the Company’s non- compliance with any applicable local requirements. §3.2 Regulation of Streets or Other Town Property. The Company expressly acknowledges the Town’s right to enforce regulations concerning the Company’s access to or use of the Streets, including requirements for permits. §3.3 Compliance with Laws. The Company shall promptly and fully comply with all laws, regulations, permits and orders lawfully enacted by the Town. ARTICLE 4 FRANCHISE FEE §4.1 Franchise Fee. A. Franchise Fee. In partial consideration for the franchise, which provides the certain terms related to the Company’s use of Town Streets, Public Utility Easements and Other Town Property, which are valuable public properties acquired and maintained by the Town at great expense to its Residents, and in recognition of the fact that the grant to the Company of the franchise is a valuable right, the Company shall pay the Town a sum equal to three percent (3%) of all Gross Revenues. To the extent required by law, the Company shall collect this fee from a surcharge upon Town residents who are customers of the Company. 5 B. Obligation in Lieu of Fee. In the event that the franchise fee specified herein is declared void for any reason by a court of competent jurisdiction, unless prohibited by law, the Company shall be obligated to pay the Town, at the same times and in the same manner as provided in the Franchise, an aggregate amount equal to the amount that the Company would have paid as a franchise fee as partial consideration for use of the Town Streets, Public Utility Easements and other Town Property. Such payment shall be made in accordance with the applicable provisions of law. Further, to the extent required by law, the Company shall collect the amounts agreed upon through a surcharge upon Utility Service provided to Town Residents who are customers of the Company. C. Changes in Utility Service Industries. The Town and the Company recognize that utility service industries are the subject of restructuring initiatives by legislative and regulatory authorities, and are also experiencing other changes as a result of mergers, acquisitions, and reorganizations. Some of such initiatives and changes have or may have an adverse impact upon the franchise fee revenues provided for herein. In recognition of the length of the term of this Franchise, the Company agrees that in the event of any such initiatives or changes and to the extent permitted by law, upon receiving a written request from the Town, the Company will cooperate with and assist the Town in modifying this Franchise in an effort to provide that the Town receives an amount in franchise fees or some other form of compensation that is the same amount of franchise fees paid to the Town as of the date that such initiatives and changes adversely impact franchise fee revenues. D. Utility Service Provided to the Town. No franchise fee shall be charged to the Town for Utility Service provided directly or indirectly to the Town for its own consumption, including street lighting service and traffic signal lighting service, unless otherwise directed by the Town. §4.2 Remittance of Franchise Fee. A. Remittance Schedule. Franchise fee revenues shall be remitted by the Company to the Town as directed by the Town in monthly installments not more than 30 days following the close of each month. B. Correction of Franchise Fee Payments. In the event that either the Town or the Company discovers that there has been an error in the calculation of the franchise fee payment to the Town, either party shall provide written notice of the error to the other party. Subject to the following sentence, if the party receiving written notice of the error does not agree with the written notice of error, that party may challenge the written notice of error pursuant to Section 4.2.D of this Franchise; otherwise, the error shall be corrected in the next monthly payment. However, if the error results in an overpayment of the franchise fee to the Town, and said overpayment is in excess of Five Thousand Dollars ($5,000.00), at the Company’s election, credit for the overpayment shall be 6 spread over the same period the error was undiscovered or the Town shall make a refund payment to the Company. All franchise fee underpayments shall be corrected in the next monthly payment, together with interest computed at the rate set by the PUC for customer security deposits held by the Company, from the date when due until the date paid. Subject to the terms of the Tariff, in no event shall either party be required to fund or refund any overpayment or underpayment made as a result of a Company error which occurred more than five (5) years prior to the discovery of the error. C. Audit of Franchise Fee Payments. (1) Every three (3) years commencing at the end of the third year of this Franchise, the Company shall conduct an internal audit to investigate and determine the correctness of the franchise fee paid to the Town. Such audit shall be limited to the previous three (3) calendar years. The Company shall provide a written report to the Town Clerk containing the audit findings. (2) If the Town disagrees with the results of the audit, and if the parties are not able to informally resolve their differences, the Town may conduct its own audit at its own expense, and the Company shall cooperate, including but not necessarily limited to, providing the Town’s auditor with all information reasonably necessary to complete the audit. (3) If the results of a Town audit conducted pursuant to subsection C (2) concludes that the Company has underpaid the Town by five percent (5%) or more, in addition to the obligation to pay such amounts to the Town, the Company shall also pay all reasonable costs of the Town’s audit. D. Fee Disputes. Either party may challenge any written notification of error as provided for in Section 4.2.B of this Franchise by filing a written notice to the other party within thirty (30) days of receipt of the written notification of error. The written notice shall contain a summary of the facts and reasons for the party’s notice. The parties shall make good faith efforts to resolve any such notice of error before initiating any formal legal proceedings for the resolution of such error. E. Reports. Upon written request by the Town, but not more than once per year, the Company shall supply the Town with reports, in such formats and providing such details as reasonably requested by the Town, of all suppliers of utility service that utilize Company Facilities to sell or distribute utility service to Residents and the names and addresses of each such supplier, provided the Company shall not be required to disclose any confidential or proprietary information. 7 §4.3 Franchise Fee Payment not in Lieu of Permit or Other Fees. Payment of the franchise fee does not exempt the Company from any other lawful tax or fee imposed generally upon persons doing business within the Town, including any fee for a street closure permit, an excavation permit, a street cut permit, or other lawful permits hereafter required by the Town, except that the franchise fee provided for herein shall be in lieu of any occupation, occupancy or similar tax or fee for the use of Town Streets, Public Utilities Easements and Other Town Property. ARTICLE 5 ADMINISTRATION OF FRANCHISE §5.1 Town Designee. The Town Clerk shall designate in writing to the Company an official having full power and authority to administer this Franchise. The Town Clerk may also designate one or more Town representatives to act as the primary liaison with the Company as to particular matters addressed by this Franchise and shall provide the Company with the name and telephone numbers of said Town representatives. The Town Clerk may change these designations by providing written notice to the Company. The Town’s designee shall have the right, at all reasonable times, to inspect any Company Facilities in Town Streets and Other Town Property. §5.2 Company Designee. The Company shall designate a representative to act as the primary liaison with the Town and shall provide the Town with the name, address, and telephone number for the Company’s representative under this Franchise. The Company may change its designation by providing written notice to the Town. The Town shall use this liaison to communicate with the Company regarding Utility Service and related service needs for Town facilities. §5.3 Coordination of Work. The Company agrees to coordinate its activities in Town Streets, Public Utility Easements and Other Town Property with the Town. The Town and the Company will meet annually upon the written request of the Town designee to exchange their respective short-term and long-term forecasts and/or work plans for construction and other similar work which may affect Town Streets, including but not limited to any planned Town Streets paving project. The Town and Company shall hold such meetings as either deems necessary to exchange additional information with a view toward coordinating their respective activities in those areas where such coordination may prove beneficial and so that the Town will be assured that all applicable provisions of this Franchise, applicable building and zoning codes, and applicable Town air and water pollution regulations are complied with, and that aesthetic and other relevant planning principles have been given due consideration. 8 ARTICLE 6 SUPPLY, CONSTRUCTION, AND DESIGN §6.1 Purpose. The Company acknowledges the critical nature of the municipal services performed or provided by the Town to the Residents that require the Company to provide prompt and reliable Utility Service and the performance of related services for Town facilities. The Town and the Company wish to provide for certain terms and conditions under which the Company will provide Utility Service and perform related services for the Town in order to facilitate and enhance the operation of Town facilities. They also wish to provide for other processes and procedures related to the provision of Utility Service to the Town. §6.2 Supply. Subject to the jurisdiction of the PUC, the Company shall take all reasonable and necessary steps to provide a sufficient supply of gas to Residents at the lowest reasonable cost consistent with reliable supplies. §6.3 Charges to the Town for Service to Town Facilities. No charges to the Town by the Company for Utility Service (other than gas transportation which shall be subject to negotiated contracts) shall exceed the lowest charge for similar service or supplies provided by the Company to any other similarly situated customer of the Company. The parties acknowledge the jurisdiction of the PUC over the Company’s regulated intrastate electric and gas rates. §6.4 Restoration of Service. A. Notification. The Company shall provide to the Town daytime and nighttime telephone numbers of a designated Company representative from whom the Town designee may obtain status information from the Company on a twenty-four (24) hour basis concerning interruptions of Utility Service in any part of the Town. B. Restoration. In the event the Company's gas system within the Town, or any part thereof, is partially or wholly destroyed or incapacitated, the Company shall use due diligence to restore such system to satisfactory service within the shortest practicable time, or provide a reasonable alternative to such system if the Company elects not to restore such system. §6.5 Obligations Regarding Company Facilities. A. Company Facilities. All Company Facilities within Town Streets and Other Town Property shall be maintained in good repair and condition. B. Company Work within the Town. All work within Town Streets and Other Town Property performed or caused to be performed by the Company shall be done: (1) in a high-quality manner that is in accordance with generally accepted utility practice; 9 (2) in a timely and expeditious manner; (3) in a manner that reasonably minimizes inconvenience to the public; (4) in a cost-effective manner, which may include the use of qualified contractors; (5) in accordance with all applicable laws, ordinances, regulations and the Tariff; and (6) in accordance with all lawfully required Town permits. C. No Interference with Town Facilities. Company Facilities shall not unreasonably interfere with any Town facilities, including water facilities, sanitary or storm sewer facilities, communications facilities, or other Town uses of the Streets, Public Utility Easements or Other Town Property. Company Facilities shall be installed and maintained in Town Streets, Public Utility Easements and Other Town Property so as to reasonably minimize interference with other property, trees, and other improvements and natural features in and adjoining the Streets, Public Utility Easements and Other Town Property in light of the Company’s obligation under Colorado law to provide safe and reliable utility facilities and services. D. Permit and Inspection. The installation, renovation, and replacement of any Company Facilities in the Town Streets or Other Town Property by or on behalf of the Company shall be subject to permit, inspection and approval by the Town in accordance with applicable laws. Such permitting, inspection and approval may include, but shall not be limited to, the following matters: location of Company Facilities, cutting and pruning of trees and shrubs; provided, however, Company shall have the right to cut, prune, and/or remove vegetation in accordance with its standard vegetation management requirements and procedures, and disturbance of pavement, sidewalks and surfaces of Town Streets or Other Town Property. The Company agrees to cooperate with the Town in conducting inspections and shall promptly perform any remedial action lawfully required by the Town pursuant to any such inspection. E. Compliance. The Company and all of its contractors shall comply with the requirements of all municipal laws, ordinances, regulations, permits, and standards lawfully adopted, including but not limited to requirements of all building and zoning codes, and requirements regarding curb and pavement cuts, excavating, digging, and other construction activities. The Company shall use commercially reasonable efforts to require that its contractors working in Town Streets, Public Utility Easements or Other Town Property hold the necessary licenses and permits required by law. F. As-Built Drawings. The Company shall provide as-built drawings of 10 any Company Facility installed within the Town Streets or contiguous to the Town Streets. The Company shall provide the as-built drawings as soon as reasonably possible, but no sooner than 14 days after project completion and no later than 60 days after project completion. As used in this Section, as-built drawings refers to the facility drawings as maintained in the Company’s geographical information system or any equivalent Company system. The Company shall not be required to create drawings that do not exist at the time of the request. G. The Company will share to the extent possible GIS data of its facilities. §6.6 Excavation and Construction. The Company shall be responsible for obtaining, paying for, and complying with all applicable permits including, but not limited to, excavation, street closure and street cut permits, in the manner required by the laws, ordinances, and regulations of the Town. Although the Company shall be responsible for obtaining and complying with the terms of such permits when performing relocations requested by the Town under Section 6.8 of this Franchise, the Town will not require the Company to pay the fees charged for such permits. Upon the Company submitting a construction design plan, the Town shall promptly and fully advise the Company in writing of all requirements for restoration of Town Streets in advance of Company excavation projects in Town Streets, based upon the design submitted. §6.7 Restoration. When the Company does any work in or affecting the Town Streets, Public Utility Easements or Other Town Property, it shall, at its own expense, promptly remove any obstructions placed thereon or therein by the Company and restore such Town Streets, Public Utility Easements or Other Town Property to a condition that is substantially the same as existed before the work, and that meets applicable Town standards. If weather or other conditions do not permit the complete restoration required by this Section, the Company may with the approval of the Town, temporarily restore the affected Town Streets, Public Utility Easements or Other Town Property, provided that such temporary restoration is not at the Town’s expense and provided further that the Company promptly undertakes and completes the required permanent restoration when the weather or other conditions no longer prevent such permanent restoration. Upon the request of the Town, the Company shall restore the Streets, Public Utility Easements or Other Town Property to a better condition than existed before the Company work was undertaken, provided that the Town shall be responsible for any incremental costs of such restoration not required by then-current Town standards, and provided the Town seeks and/or grants, as applicable, any additional required approvals. If the Company fails to promptly restore the Town Streets, Public Utility Easements or Other Town Property as required by this Section, and if, in the reasonable discretion of the Town immediate action is required for the protection of public health, safety or welfare, the Town may restore such Streets, Public Utility Easements or Other Town Property or remove the obstruction therefrom; provided however, Town actions do not interfere with Company Facilities. The Company shall be responsible for the actual cost 11 incurred by the Town to restore such Town Streets, Public Utility Easements or Other Town Property or to remove any obstructions therefrom. In the course of its restoration of Town Streets, Public Utility Easements or Other Town Property under this Section, the Town shall not perform work on Company facilities unless specifically authorized by the Company in writing on a project by project basis and subject to the terms and conditions agreed to in such authorization. §6.8 Relocation of Company Facilities. A. Relocation Obligation. The Company shall temporarily or permanently remove, relocate, change or alter the position of any Company Facility (collectively, “Relocate(s),” “Relocation(s)” or “Relocated”) in Town Streets or in Other Town Property at no cost or expense to the Town whenever such Relocation is necessary for the completion of any Public Project. In the case of Relocation that is necessary for the completion of any Public Project in a Public Utility Easement, the Company shall not be responsible for any relocation costs. In the event of any Relocation contemplated pursuant to this Section 6.8A, the Company and the Town agree to cooperate on the location and Relocation of the Company Facilities in the Town Streets or Other Town Property in order to achieve Relocation in the most efficient and cost-effective manner possible. Notwithstanding the foregoing, once the Company has Relocated any Company Facility at the Town’s direction, if the Town requests that the same Company Facility be Relocated within two (2) years, the subsequent Relocation shall not be at the Company’s expense. Nothing provided herein shall prevent the Company from obtaining reimbursement of its Relocation costs from third parties. B. Private Projects. Subject to Section 6.8.F, the Company shall not be responsible for the expenses of any Relocation required by Private Projects, and the Company has the right to require the payment of estimated Relocation expenses from the party causing, or responsible for, the Relocation before undertaking the Relocation. C. Relocation Performance. The Relocations set forth in Section 6.8.A of this Franchise shall be completed within a reasonable time, not to exceed one hundred twenty (120) days from the later of the date on which the Town designee requests, in writing, that the Relocation commence, or the date when the Company is provided all Supporting Documentation. The Company shall receive an extension of time to complete a Relocation where the Company's performance was delayed due to Force Majeure or the failure of the Town to provide adequate Supporting Documentation. The Company has the burden of presenting information to reasonably demonstrate the basis for the delay. Upon written request of the Company, the Town may also grant the Company reasonable extensions of time for good cause shown and the Town shall not unreasonably withhold or condition any such extension. D. Town Revision of Supporting Documentation. Any revision by the 12 Town of Supporting Documentation provided to the Company that causes the Company to substantially redesign and/or change its plans regarding facility Relocation shall be deemed good cause for a reasonable extension of time to complete the Relocation under the Franchise. E. Completion. Each such Relocation shall be complete only when the Company actually Relocates the Company Facilities, restores the Relocation site in accordance with Section 6.7 of this Franchise or as otherwise agreed with the Town, and removes from the site or properly abandons on site all unused facilities, equipment, material and other impediments. F. Scope of Obligation. Notwithstanding anything to the contrary in this Franchise, the Company shall not be required to Relocate any Company Facilities from property (a) owned by the Company in fee; or (b) in which the Company has a property right, grant or interest, including without limitation an easement. G. Underground Relocation. Underground facilities shall be Relocated underground. Above ground facilities shall be Relocated above ground unless the Company is paid for the incremental amount by which the underground cost would exceed the above ground cost of Relocation. H. Coordination. (1) When requested in writing by the Town designee or the Company, representatives of the Town and the Company shall meet to share information regarding anticipated projects which will require Relocation of Company Facilities in Town Streets. Such meetings shall be for the purpose of minimizing conflicts where possible and to facilitate coordination with any reasonable timetable established by the Town for any Public Project. (2) The Town shall make reasonable best efforts to provide the Company with two (2) years advance notice of any planned street repaving. The Company shall make reasonable best efforts to complete any necessary or anticipated repairs or upgrades to Company Facilities that are located underneath the Streets within the two-year period if practicable. I. Proposed Alternatives or Modifications. Upon receipt of written notice of a required Relocation, the Company may propose an alternative to or modification of the Public Project requiring the Relocation in an effort to mitigate or avoid the impact of the required Relocation of Company Facilities. The Town shall in good faith review the proposed alternative or modification. The acceptance of the proposed alternative or modification shall be at the sole discretion of the Town. In the event the Town accepts the proposed alternative or modification, the Company agrees to promptly compensate the Town for all 13 additional costs, expenses or delay that the Town reasonably determines resulted from the implementation of the proposed alternative. §6.9 New or Modified Service Requested by Town. The conditions under which the Company shall install new or modified Utility Service to the Town as a customer shall be governed by this Franchise and the Company’s Tariffs and the Tariffs shall control in the event of a conflict. §6.10 Service to New Areas. If the territorial boundaries of the Town are expanded during the term of this Franchise, the Company shall, to the extent permitted by law, extend service to Residents in the expanded area at the earliest practicable time if the expanded area is within the Company’s PUC-certificated service territory. Service to the expanded area shall be in accordance with the terms of the Tariffs and this Franchise, including the payment of franchise fees. §6.11 Town Not Required to Advance Funds If Permitted by Tariffs. Upon receipt of the Town’s authorization for billing and construction, the Company shall install Company Facilities to provide Utility Service to the Town as a customer, without requiring the Town to advance funds prior to construction. The Town shall pay for the installation of Company Facilities once completed in accordance with the Tariffs. Notwithstanding anything to the contrary, the provisions of this Section allowing the Town to not advance funds prior to construction shall only apply to the extent permitted by the Tariffs. §6.12 Technological Improvements. The Company shall use its best efforts to incorporate, as soon as practicable, technological advances in its equipment and service within the Town when such advances are technically and economically feasible and are safe and beneficial to the Town and its Residents. ARTICLE 7 RELIABILITY §7.1 Reliability. The Company shall operate and maintain Company Facilities efficiently and economically and in accordance with the high standards and best systems, methods and skills consistent with the provision of adequate, safe and reliable Utility Service. §7.2 Franchise Performance Obligations. The Company recognizes that, as part of its obligations and commitments under this Franchise, the Company shall carry out each of its performance obligations in a timely, expeditious, efficient, economical and workmanlike manner. §7.3 Reliability Reports. Upon written request, the Company shall provide the Town with a report regarding the reliability of Company Facilities and Utility Service. 14 ARTICLE 8 COMPANY PERFORMANCE OBLIGATIONS §8.1 New or Modified Service to Town Facilities. In providing new or modified Utility Service to Town facilities, the Company agrees to perform as follows: A. Performance. The Company shall complete each project requested by the Town within a reasonable time. The Parties agree that a reasonable time shall not exceed one hundred eighty (180) days from the date upon which the Town designee makes a written request and provides the required Supporting Documentation for all Company Facilities other than traffic facilities. The Company shall be entitled to an extension of time to complete a project where the Company's performance was delayed due to Force Majeure. Upon request of the Company, the Town designee may also grant the Company reasonable extensions of time for good cause shown and the Town shall not unreasonably withhold any such extension. B. Town Revision of Supporting Documentation. Any revision by the Town of Supporting Documentation provided to the Company that causes the Company to substantially redesign and/or change its plans regarding new or modified service to Town facilities shall be deemed good cause for a reasonable extension of time to complete the Relocation under the Franchise. C. Completion/Restoration. Each such project shall be complete only when the Company actually provides the service installation or modification required, restores the project site in accordance with the terms of the Franchise or as otherwise agreed with the Town and removes from the site or properly abandons on site any unused facilities, equipment, material and other impediments. §8.2 Adjustments To Company Facilities. The Company shall perform adjustments to Company Facilities, including manholes and other appurtenances in Streets and Other Town Property, to accommodate Town street maintenance, repair and paving operations at no cost to the Town. In providing such adjustments to Company Facilities, the Company agrees to perform as follows: A. Performance. The Company shall complete each requested adjustment within a reasonable time, not to exceed thirty (30) days from the date upon which the Town makes a written request and provides to the Company all information reasonably necessary to perform the adjustment. The Company shall be entitled to an extension of time to complete an adjustment where the Company's performance was delayed due to Force Majeure. Upon request of the Company, the Town may also grant the Company reasonable extensions of time for good cause shown and the Town shall not unreasonably withhold any such extension. B. Completion/Restoration. Each such adjustment shall be complete 15 only when the Company actually adjusts and, if required, readjusts, Company Facilities to accommodate Town operations in accordance with Town instructions following Town paving operations. C. Coordination. As requested by the Town or the Company, representatives of the Town and the Company shall meet regarding anticipated street maintenance operations which will require such adjustments to Company Facilities in Streets or Other Town Property. Such meetings shall be for the purpose of coordinating and facilitating performance under this Section. §8.3 Third Party Damage Recovery. A. Damage to Company Interests. If any individual or entity damages any Company Facilities, to the extent permitted by law the Town will notify the Company of any such incident of which it has knowledge and will provide to the Company within a reasonable time all pertinent information within its possession regarding the incident and the damage, including the identity of the responsible individual or entity. B. Damage to Company Property for which the Town is Responsible. If any individual or entity damages any Company Facilities for which the Town is obligated to reimburse the Company for the cost of the repair or replacement, to the extent permitted by law, the Company will notify the Town of any such incident of which it has knowledge and will provide to the Town within a reasonable time all pertinent information within its possession regarding the incident and the damage, including the identity of the responsible individual or entity. C. Meeting. The Company and the Town agree to meet periodically upon written request of either party for the purpose of developing, implementing, reviewing, improving and/or modifying mutually beneficial procedures and methods for the efficient gathering and transmittal of information useful in recovery efforts against third parties for damaging Company Facilities. ARTICLE 9 BILLING AND PAYMENT §9.1 Billing for Utility Services. A. Monthly Billing. Unless otherwise provided in the Tariffs, the rules and regulations of the PUC, or the Public Utility Law, the Company shall render bills monthly to the offices of the Town for Utility Service and other related services for which the Company is entitled to payment. B. Address For Billing. Billings for service rendered during the preceding month shall be sent to the person(s) designated by the Town and payment for same shall be made as prescribed in this Franchise and the applicable Company Tariffs. 16 C. Supporting Documents. To the extent requested by the Town, the Company shall provide all billings and any underlying Supporting Documentation reasonably requested by the Town in an editable and manipulatble electronic format that is acceptable to the Company and the Town. D. Meetings. The Company agrees to meet with the Town designee on a reasonable basis for the purpose of developing, implementing, reviewing, and/or modifying mutually beneficial and acceptable billing procedures, methods, and formats which may include, without limitation, electronic billing and upgrades or beneficial alternatives to the Company’s current most advanced billing technology, for the efficient and cost effective rendering and processing of such billings submitted by the Company to the Town. §9.2 Payment To Town. In the event the Town determines after written notice to the Company that the Company is liable to the Town for payments, costs, expenses or damages of any nature, and subject to the Company’s right to challenge such determination, the Town may deduct all monies due and owing the Town from any other amounts currently due and owing the Company. Upon receipt of such written notice, the Company may request a meeting between the Company’s designee and a designee of the Town to discuss such determination. The Town agrees to attend such a meeting. As an alternative to such deduction and subject to the Company’s right to challenge, the Town may bill the Company for such assessment(s), in which case, the Company shall pay each such bill within thirty (30) days of the date of receipt of such bill unless it challenges the validity of the charge. If the Company challenges the Town determination of liability, the Town shall make such payments to the Company for Utility Service received by Town pursuant to the Tariffs until the challenge has been finally resolved. ARTICLE 10 PURCHASE OR CONDEMNATION §10.1 Municipal Right to Purchase or Condemn. A. Right and Privilege of Town. The right and privilege of the Town to construct, own and operate a municipal utility, and to purchase pursuant to a mutually acceptable agreement or condemn any Company Facilities located within the territorial boundaries of the Town, and the Company's rights in connection therewith, as set forth in applicable provisions of the constitution, statutes and case law of the State of Colorado relating to the acquisition of public utilities, are expressly recognized. The Town shall have the right, within the time frames and in accordance with the procedures set forth in such provisions, to condemn Company Facilities, land, rights-of-way and easements now owned or to be owned by the Company located within the territorial boundaries of the Town. In the event of any such purchase, no value shall be ascribed or given to the rights to use Town Streets, Public Easements or Other Town Property granted under this Franchise in the valuation of the property thus sold. B. Notice of Intent to Purchase or Condemn. The Town shall provide 17 the Company no less than one (1) year's prior written notice of its intent to purchase or condemn Company Facilities. Nothing in this Section shall be deemed or construed to constitute a consent by the Company to the Town’s purchase or condemnation of Company Facilities, nor a waiver of any Company defenses or challenges related thereto. ARTICLE 11 TRANSFER OF FRANCHISE §11.1 Consent of Town Required. The Company shall not transfer or assign any rights under this Franchise to an unaffiliated third party, except by merger with such third party, or, except when the transfer is made in response to legislation or regulatory requirements, unless the Town approves such transfer or assignment in writing. Approval of the transfer or assignment shall not be unreasonably withheld, conditioned or delayed. §11.2 Transfer Fee. In order that the Town may share in the value this Franchise adds to the Company’s operations, any transfer or assignment of rights granted under this Franchise requiring Town approval, as set forth herein, shall be subject to the condition that the Company shall promptly pay to the Town a transfer fee in an amount equal to the proportion of the Town’s then-population provided Utility Service by the Company to the then-population of the Town and County of Denver provided Utility Service by the Company multiplied by one million dollars ($1,000,000.00). Except as otherwise required by law, such transfer fee shall not be recovered from a surcharge placed only on the rates of Residents. ARTICLE 12 CONTINUATION OF UTILITY SERVICE §12.1 Continuation of Utility Service. In the event this Franchise is not renewed at the expiration of its term or is terminated for any reason, and the Town has not provided for alternative utility service, the Company shall have no right or obligation to remove any Company Facilities from Streets, Public Utility Easements or Other Town Property or discontinue providing Utility Service unless otherwise ordered by the PUC, and shall continue to provide Utility Service within the Town until the Town arranges for utility service from another provider. The Town acknowledges and agrees that the Company has the right to use Streets, Other Town Property and Public Easements during any such period. The Company further agrees that it will not withhold any temporary Utility Services necessary to protect the public. The Town agrees that in the circumstances of this Article, the Company shall be entitled to monetary compensation as provided in the Tariffs and the Company shall be entitled to collect from Residents and, upon the Town’s compliance with applicable provisions of law, shall be obligated to pay the Town, at the same times and in the same manner as provided in the Franchise, an aggregate amount equal to the amount which the Company would have paid as a franchise fee as consideration for use of the Town’s Streets and Other Town Property. Only upon 18 receipt of written notice from the Town stating that the Town has adequate alternative Utility Service for Residents and upon order of the PUC shall the Company be allowed to discontinue the provision of Utility Service to the Town and its Residents. ARTICLE 13 INDEMNIFICATION AND IMMUNITY §13.1 Town Held Harmless. The Company shall indemnify, defend and hold the Town harmless from and against claims, demands, liens and all liability or damage of whatsoever kind on account of or directly arising from the grant of this Franchise, or the exercise by the Company of the related rights, but in both instances only to the extent caused by the negligence or intentional misconduct of the Company, and shall pay the costs of defense plus reasonable attorneys’ fees. The Town shall (a) give prompt written notice to the Company of any claim, demand or lien with respect to which the Town seeks indemnification hereunder; and, (b) unless in the Town’s judgment a conflict of interest may exist between the Town and the Company with respect to such claim, demand or lien, shall permit the Company to assume the defense of such claim, demand, or lien with counsel reasonably satisfactory to the Town. If such defense is assumed by the Company, the Company shall not be subject to liability for any settlement made without its consent. If such defense is not assumed by the Company or if the Town determines that a conflict of interest exists, the parties reserve all rights to seek all remedies available in this Franchise against each other. Notwithstanding any provision hereof to the contrary, the Company shall not be obligated to indemnify, defend or hold the Town harmless to the extent any claim, demand or lien arises out of or in connection with any negligent or intentional act or failure to act of the Town or any of its officers, employees or authorized agents, or to the extent that the Town is acting in the capaTown of a Company customer. §13.2 Immunity. Nothing in this Section or any other provision of this Franchise shall be construed as a waiver of the notice requirements, defenses, immunities and limitations the Town may have under the Colorado Governmental Immunity Act (§4-10-101, C.R. S., et. seq.) or of any other defenses, immunities, or limitations of liability available to the Town by law. ARTICLE 14 BREACH §14.1 Non-Contestability. The Town and the Company agree to take all reasonable and necessary actions to assure that the terms of this Franchise are performed. The Company reserves the right to seek a change in its Tariffs, including but not limited to the rates, charges, terms, and conditions of providing Utility Service to the Town and its Residents, and the Town retains all rights that it may have to intervene and participate in any such proceedings. §14.2 Breach. 19 A. Notice/Cure/Remedies. Except as otherwise provided in this Franchise, if a party (the “breaching party”) to this Franchise fails or refuses to perform any of the terms or conditions of this Franchise (a “breach”), the other party (the “non-breaching party”) may provide written notice to the breaching party of such breach. Upon receipt of such notice, the breaching party shall be given a reasonable time, not to exceed thirty (30) days if such breach can be cured within that time period, in which to remedy the breach. If the breaching party does not remedy the breach within the time allowed in the notice, the non- breaching party may exercise the following remedies for such breach: (1) specific performance of the applicable term or condition as allowed by law; and (2) recovery of actual damages from the date of such breach incurred by the non-breaching party in connection with the breach, but excluding any special, punitive or consequential damages. B. Termination of Franchise by Town. In addition to the foregoing remedies, if the Company fails or refuses to perform any material term or condition of this Franchise (a “material breach”), the Town may provide written notice to the Company of such material breach. Upon receipt of such notice, the Company shall be given a reasonable time, not to exceed ninety (90) days if the breach can be cured within that time period, in which to remedy the material breach. If the Company does not remedy the material breach within the time allowed in the notice, the Town may, at its sole option, terminate this Franchise. This remedy shall be in addition to the Town’s right to exercise any of the remedies provided for elsewhere in this Franchise. Upon such termination, the Company shall continue to provide Utility Service to the Town and its Residents (and shall continue to have associated rights and grants needed to provide such service) until the Town makes alternative arrangements for such service and until otherwise ordered by the PUC and the Company shall be entitled to collect from Residents and, upon the Town complying with applicable provisions of law, shall be obligated to pay the Town, at the same times and in the same manner as provided in the Franchise, an aggregate amount equal to the amount which the Company would have paid as a franchise fee as consideration for use of the Town Streets and Other Town Property. Unless otherwise provided by law, the Company shall be entitled to collect such amount from Residents. C. Company Shall Not Terminate Franchise. In no event does the Company have the right to terminate this Franchise. D. No Limitation. Except as provided herein, nothing in this Franchise shall limit or restrict any legal rights or remedies that either party may possess arising from any alleged breach of this Franchise. 20 ARTICLE 15 AMENDMENTS §15.1 Proposed Amendments. At any time during the term of this Franchise, the Town or the Company may propose amendments to this Franchise by giving thirty (30) days written notice to the other of the proposed amendment(s) desired, and both parties thereafter, through their designated representatives, will, within a reasonable time, negotiate in good faith in an effort to agree upon mutually satisfactory amendment(s). However, nothing contained in this Section shall be deemed to require either party to consent to any amendment proposed by the other party. §15.2 Effective Amendments. No alterations, amendments or modifications to this Franchise shall be valid unless executed in writing by the parties, which alterations, amendments or modifications shall be adopted with the same formality used in adopting this Franchise, to the extent required by law. Neither this Franchise, nor any term hereof, may be changed, modified or abandoned, in whole or in part, except by an instrument in writing, and no subsequent oral agreement shall have any validity whatsoever. ARTICLE 16 EQUAL OPPORTUNITY §16.1 Economic Development. The Company is committed to the principle of stimulating, cultivating and strengthening the participation and representation of persons of color, women and members of other under-represented groups within the Company and in the local business community. The Company believes that increased participation and representation of under-represented groups will lead to mutual and sustainable benefits for the local economy. The Company is committed also to the principle that the success and economic well-being of the Company is closely tied to the economic strength and vitality of the diverse communities and people it serves. The Company believes that contributing to the development of a viable and sustainable economic base among all Company customers is in the best interests of the Company and its shareholders. §16.2 Employment. A. Programs. The Company is committed to undertaking programs that identify, consider and develop persons of color, women and members of other under-represented groups for positions at all skill and management levels within the Company. B. Businesses. The Company recognizes that the Town and the business community in the Town, including women and minority owned businesses, provide a valuable resource in assisting the Company to develop programs to promote persons of color, women and members of under represented communities into management positions, and agrees to keep the Town regularly 21 advised of the Company's progress by providing the Town a copy of the Company's annual affirmative action report upon the Town’s written request. C. Recruitment. In order to enhance the diversity of the employees of the Company, the Company is committed to recruiting diverse employees by strategies such as partnering with colleges, universities and technical schools with diverse student populations, utilizing diversity-specific media to advertise employment opportunities, internships, and engaging recruiting firms with diversity-specific expertise. D. Advancement. The Company is committed to developing a world-class workforce through the advancement of its employees, including persons of color, women and members of under represented groups. In order to enhance opportunities for advancement, the Company will offer training and development opportunities for its employees. Such programs may include mentoring programs, training programs, classroom training and leadership programs. E. Non-Discrimination. The Company is committed to a workplace free of discrimination based on race, color, religion, national origin, gender, age, military status, sexual orientation, marital status, or physical or mental disability or any other protected status in accordance with all federal, state or local laws. The Company shall not, solely because of race, creed, color, religion, sex, age, national origin or ancestry or handicap, refuse to hire, discharge, promote, demote or discriminate in matters of compensation, against any person otherwise qualified. F. Board of Directors. The Company shall identify and consider women, persons of color and other under represented groups to recommend for its Board of Directors, consistent with the responsibility of boards to represent the interests of the Shareholders, customers and employees of the Company. §16.3 Contracting. A. Contracts. It is the Company's policy to make available to minority and women owned business enterprises and other small and/or disadvantaged business enterprises the maximum practical opportunity to compete with other service providers, contractors, vendors and suppliers in the marketplace. The Company is committed to increasing the proportion of Company contracts awarded to minority and women owned business enterprises and other small and/or disadvantaged business enterprises for services, construction, equipment and supplies to the maximum extent consistent with the efficient and economical operation of the Company. B. Community Outreach. The Company agrees to maintain and continuously develop contracting and community outreach programs calculated to enhance opportunity and increase the participation of minority and women owned business enterprises and other small and/or disadvantaged business 22 enterprises to encourage economic vitality. The Company agrees to keep the Town regularly advised of the Company's programs. C. Community Development. The Company shall maintain and support partnerships with local chambers of commerce and business organizations, including those representing predominately minority owned, women owned and disadvantaged businesses, to preserve and strengthen open communication channels and enhance opportunities for minority owned, women owned and disadvantaged businesses to contract with the Company. §16.4 Coordination. Town agencies provide collaborative leadership and mutual opportunities or programs relating to Town based initiatives on economic development, employment and contracting opportunity. The Company agrees to review Company programs and mutual opportunities responsive to this Article with these agencies, upon their request, and to collaborate on best practices regarding such programs and coordinate and cooperate with the agencies in program implementation. ARTICLE 17 MISCELLANEOUS §17.1 No Waiver. Neither the Town nor the Company shall be excused from complying with any of the terms and conditions of this Franchise by any failure of the other, or any of its officers, employees, or agents, upon any one or more occasions, to insist upon or to seek compliance with any such terms and conditions. §17.2 Successors and Assigns. The rights, privileges, and obligations, in whole or in part, granted and contained in this Franchise shall inure to the benefit of and be binding upon the Company, its successors and assigns, to the extent that such successors or assigns have succeeded to or been assigned the rights of the Company pursuant to Article 11 of this Franchise. Upon a transfer or assignment pursuant to Article 11, the Company shall be relieved from all liability from and after the date of such transfer. §17.3 Third Parties. Nothing contained in this Franchise shall be construed to provide rights to third parties. §17.4 Notice. Both parties shall designate from time to time in writing representatives for the Company and the Town who will be the persons to whom notices shall be sent regarding any action to be taken under this Franchise. Notice shall be in writing and forwarded by certified mail, reputable overnight courier or hand delivery to the persons and addresses as hereinafter stated, unless the persons and addresses are changed at the written request of either party, delivered in person or by certified mail. Notice shall be deemed received (a) three days after being mailed via the US Postal Service, (b) one business day after mailed if via reputable overnight courier, or (3) upon hand delivery if delivered by courier. Until any such change shall hereafter be made, notices shall be sent as follows: 23 To the Town: Town Clerk Town of Estes Park 170 MacGregor Avenue PO BOX 1200 Estes Park, Colorado 80517 To the Company: Regional Vice President, Customer and Community Relations Public Service Company of Colorado P.O. Box 840 Denver, Colorado 80201 With a copy to: Legal Department Public Service Company of Colorado P.O. Box 840 Denver, Colorado 80201 §17.5 Examination Of Records. The parties agree that any duly authorized representative of the Town and the Company shall have access to and the right to examine any directly pertinent non-confidential books, documents, papers, and records of the other party involving any activities related to this Franchise. All such records must be kept for a minimum of the lesser of three (3) years or the time period permitted by a party’s record retention policy. To the extent that either party believes in good faith that it is necessary in order to monitor compliance with the terms of this Franchise to examine confidential books, documents, papers, and records of the other party, the parties agree to meet and discuss providing confidential materials, including but not limited to providing such materials subject to a reasonable confidentiality agreement that effectively protects the confidentiality of such materials and complies with PUC rules and regulations. §17.6 List of Utility Property. The Company shall provide the Town, upon request not more than once every two (2) years, a list of electric utility-related real property owned in fee by the Company within the Town. All such records must be kept for a minimum of three (3) years or such shorter duration if required by Company policy. §17.7 PUC Filings. Upon written request by the Town, the Company shall provide the Town non-confidential copies of all applications, advice letters and periodic reports, together with any accompanying non-confidential testimony and exhibits, filed by the Company with the Colorado Public Utilities Commission. 24 Notwithstanding the foregoing, notice regarding any gas and electric filings that may affect utility service rates in the Town shall be sent to the Town upon filing. §17.8 Information. Upon written request, the Company shall provide the Town Clerk or the Town Clerk’s designee with: A. a copy of the Company’s or its parent company’s consolidated annual financial report, or alternatively, a URL link to a location where the same information is available on the Company’s web site; B. maps or schematics indicating the location of specific Company Facilities (subject to Town executing a confidentiality agreement as required by Company policy), including gas or electric lines, located within the Town, to the extent those maps or schematics are in existence at the time of the request and related to an ongoing project within the Town. The Company does not represent or warrant the accuracy of any such maps or schematics; and C. a copy of any report required to be prepared for a federal or state agency detailing the Company’s efforts to comply with federal and state air and water pollution laws. §17.9 Payment of Taxes and Fees. A. Impositions. The Company shall pay and discharge as they become due, promptly and before delinquency, all taxes, assessments, rates, charges, license fees, municipal liens, levies, excises, or imposts, whether general or special, or ordinary or extraordinary, of every name, nature, and kind whatsoever, including all governmental charges of whatsoever name, nature, or kind, which may be levied, assessed, charged, or imposed, or which may become a lien or charge against this Franchise ("Impositions"), provided that Company shall have the right to contest any such Impositions and shall not be in breach of this Section so long as it is actively contesting such Impositions. B. Town Liability. The Town shall not be liable for the payment of taxes, late charges, interest or penalties of any nature other than pursuant to applicable Tariffs. §17.10 Conflict of Interest. The parties agree that no official, officer or employee of the Town shall have any personal or beneficial interest whatsoever in the services or property described herein and the Company further agrees not to hire or contract for services any official, officer or employee of the Town to the extent prohibited by law, including ordinances and regulations of the Town. §17.11 Certificate of Public Convenience and Necessity. The Town agrees to support the Company’s application to the PUC to obtain a certificate of public convenience and necessity to exercise its rights and obligations under this Franchise. 25 §17.12 Authority. Each party represents and warrants that except as set forth below, it has taken all actions that are necessary or that are required by its ordinances, regulations, procedures, bylaws, or applicable law, to legally authorize the undersigned signatories to execute this Franchise on behalf of the parties and to bind the parties to its terms. The persons executing this Franchise on behalf of each of the parties warrant that they have full authorization to execute this Franchise. The Town acknowledges that notwithstanding the foregoing, the Company requires a certificate of public convenience and necessity from the PUC in order to operate under the terms of this Franchise. §17.13 Severability. Should any one or more provisions of this Franchise be determined to be unconstitutional, illegal, unenforceable or otherwise void, all other provisions nevertheless shall remain effective; provided, however, to the extent allowed by law, the parties shall forthwith enter into good faith negotiations and proceed with due diligence to draft one or more substitute provisions that will achieve the original intent of the parties hereunder. §17.14 Force Majeure. Neither the Town nor the Company shall be in breach of this Franchise if a failure to perform any of the duties under this Franchise is due to Force Majeure, as defined herein. §17.15 Earlier Franchises Superseded. This Franchise shall constitute the only franchise between the Town and the Company related to the furnishing of Utility Service, and it supersedes and cancels all former franchises between the parties hereto. §17.16 Titles Not Controlling. Titles of the paragraphs herein are for reference only, and shall not be used to construe the language of this Franchise. §17.17 Applicable Law. Colorado law shall apply to the construction and enforcement of this Franchise. The parties agree that venue for any litigation arising out of this Franchise shall be in the District Court for Weld County, State of Colorado. §17.18 Payment Of Expenses Incurred By Town In Relation To Franchise Agreement. The Company shall pay for expenses reasonably incurred by the Town for the adoption of this Franchise, including the publication of notices, publication of ordinances, and photocopying of documents. §17.19 Incremental Costs. The parties acknowledge that PUC rules, regulations and final decisions may require that incremental costs of complying with certain provisions of this Franchise be borne by customers of the Company who are located within the Town. §17.20 Conveyance of Town Streets, Public Easements or Other Town Property. In the event the Town vacates, releases or sells, conveys, transfers or otherwise disposes of a Town Street, or any portion of a Public Utility Easement or Other Town Property in which Company Facilities are located, the Town shall reserve an easement in favor of the Company over that portion of the Street, Public 26 Utility Easement or Other Town Property in which such utilities are. The Company and the Town shall work together to prepare the necessary legal description to effectuate such reservation. For the purposes of Section 6.8.A of this Franchise, the land vacated, released, sold, conveyed, transferred or otherwise disposed of by the Town shall no longer be deemed to be a Street or Other Town Property from which the Town may demand the Company temporarily or permanently Relocate Company Facilities at the Company’s expense. IN WITNESS WHEREOF, the parties have caused this Franchise to be executed as of the day and year first above written. TOWN OF ESTES PARK __________________________ William C. Pinkham, Mayor ATTEST: _______________________________ Town Clerk, Town of Estes Park APPROVED AS TO FORM: _______________________________ Town Attorney, Town of Estes Park PUBLIC SERVICE COMPANY OF COLORADO _________________________________ Jerome Davis, Regional Vice President, Customer and Community Relations ATTEST: _________________________________ Assistant Secretary RESOLUTION NO. 19-12 EXTENDING TERM OF FRANCHISE OF PUBLIC SERVICE COMPANY OF COLORADO WHEREAS, Public Service Company of Colorado (“Public Service”) is the current Franchisee pursuant to the terms and conditions of the Grant of Franchise as more fully set forth in Ordinance No. 11-92 adopted by the Board of Trustees on November 24, 1992; and WHEREAS, the term of the franchise expires on December 26, 2012; and WHEREAS, Public Service has given notice that on December 11, 2012 at the regular meeting of the Town Board, Public Service will make application to the Town for the passage of an ordinance granting to Public Service a Franchise in the Town; and WHEREAS, such Notice of Application has been published as required by applicable law; and WHEREAS, it is necessary to extend the term of the franchise from December 26, 2012 through March 1, 2013 in order for the Town Board to review, consider and, if appropriate, adopt an ordinance granting to Public Service the requested franchise; and WHEREAS, the Board of Trustees of the Town of Estes Park has determined that it is in the public interest to extend the term of the current franchise of Public Service from December 26, 2012, through and including March 1, 2013. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK as follows: 1. The Board of Trustees hereby extends the franchise of Public Service as granted in Ordinance No. 11-92 from December 26, 2012, through and including March 1, 2013. PASSED AND ADOPTED at a regular meeting this ____ day of ____________, 2012. Mayor ATTEST: Town Clerk