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HomeMy WebLinkAboutPACKET Town Board 2012-05-22The 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, May 22, 2012 7:00 p.m. AGENDA PLEDGE OF ALLEGIANCE. (Any person desiring to participate, please join the Board in the Pledge of Allegiance). PUBLIC COMMENT. (Please state your name and address). TOWN BOARD COMMENTS / LIAISON REPORTS. TOWN ADMINISTRATOR REPORT. 1. CONSENT AGENDA: 1. Town Board Minutes dated May 8, 2012 and Town Board Study Session Minutes dated May 8, 2012. 2. Bills. 3. Committee Minutes: A. Public Safety, Utilities and Public Works Committee, May 10, 2012. 1. L&P Service Center Roof Replacement – Apex Roofing, $46,800 – Budgeted. 4. Estes Valley Planning Commission Minutes dated April 17, 2012 (acknowledgement only). 2. REPORTS AND DISCUSSION ITEMS: 1. ROCKY MOUNTAIN NATIONAL PARK UPDATE. Superintendent Baker. 3. ACTION ITEMS: 1. ORDINANCE #06-12 AMENDING MUNICIPAL CODE CHAPTER 9.10 – FIREWORKS. Fire Marshal Spears. Moved to June 12, 2012. Prepared 5/14/12 *Revised: 05/17/12 * NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. 2. BOND PARK PHASE V PREFERRED DESIGN ALTERNATIVE. Director Zurn. 3. PLATTE RIVER POWER AUTHORITY (PRPA) WATER LEASE TO OIL AND GAS INDUSTRY. Director Bergsten. 4. CHELEY COLORADO CAMPS LEASE FOR WINDY GAP WATER. Director Bergsten. 4. REQUEST TO ENTER EXECUTIVE SESSION: 24-6-402(4)(d) C.R.S. – For discussion of specialized details of security arrangements. 5. ADJOURN. Town of Estes Park, Larimer County, Colorado, May 8, 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 8th day of May, 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: Greg White, Town Attorney Lowell Richardson, Interim Town Administrator 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. PROCLAMATION: MONTH OF THE TREE. Mayor Pinkham presented a proclamation to Sandy Burns/Tree Board member and Karen Glassman/Elementary Principal honoring May as the month of the tree and announcing the Tree Symposium on May 16th and Arbor Day celebration at the Elementary School on May 18th. PUBLIC COMMENTS. David Krumme/County resident stated the Town’s fiber is a valuable asset, which is under-utilized and would be beneficial to the Town’s future economic development. He supports further study of how the fiber could be used and offered his help in doing so. Johanna Darden/Town citizen requested the Town Board not support the leasing of water rights to the oil and gas industry for the process known as fracking due to the unknown environmental effects. Charley Dickey/Partners for Commerce Board member commented on the well- attended EDDC conference; educational opportunities being offered by Partners, development of a task force to move the discussion of economic development forward, and thanked Town staff for another successful sidewalk sale. He stated Partners would work with downtown businesses to ensure the regulations for the sidewalk sale are followed in the future. TOWN BOARD COMMENTS / LIAISON REPORTS. Trustee Ericson stated the recent open house for hunting in Hermit Park was successful and well-attend. Mayor Pro Tem Blackhurst welcomed the new Board members. The Estes Park Housing Authority would meet on Wednesday, May 9, 2012 at 8:30 a.m. in Room 203. The Public Safety, Utilities and Public Works Committee would meet on Thursday, May 10, 2012 at 8:00 a.m. in the Board Room. Trustee Koenig commented the Sister Cities Committee continues to seek members, exchanges to be held in July, and an ECO event at the fairgrounds in August. Western Heritage (Rooftop Rodeo Committee) continues to gear up for the Rodeo in July. Board of Trustees – May 8, 2012 – Page 2 Trustee Elrod reminded the public of the two Town appointed vacancies on the Estes Valley Planning Commission Board. TOWN ADMINISTRATOR REPORT. March sales tax was up 16% over last year and up 12.1% from the 2011 budget. A sales tax report and first quarter financials would be presented at an upcoming meeting. 1. CONSENT AGENDA: 1. Town Board Minutes dated April 24, 2012. 2. Bills. 3. Committee Minutes: a. Community Development/Community Services, April 26, 2012. 4. Estes Park Tree Board minutes dated March 30, 2012 (acknowledgement only). 5. Model Traffic Code, Revised 2010 – Introduce Ordinance and set Public Hearing for June 12, 2012. Trustee Elrod requested Consent Item 1.2 Bills be removed and discussed as an action item. Mayor Pro Tem Blackhurst urged the Town Board to discuss the Retail Sales Policy at the Visitor Center at an upcoming study session to provide staff with direction prior to staff reviewing and making recommendations to the CDCS Committee. Trustee Ericson stated the review of the policy came from a public request. He requested the Board review the Committee processes at an upcoming study session. After further discussion, it was moved and seconded (Blackhurst/Koenig) to approve the Consent Agenda Items 1.1, 1.3, 1.4 and 1.5, and it passed unanimously. Action Item – Consent Item 1.2 Bills – Trustee Elrod questioned the reoccurring reimbursement of Mayor Pinkham’s phone bill. He requested reimbursement items and the purchasing of logo wear be discussed by the Board and a policy developed. The Board consensus was to discuss a reimbursement policy at the study session on June 12, 2012. Trustee Elrod questioned if the practices should be placed on hold until the Board discusses a policy. Trustee Koenig and Mayor Pro Tem Blackhurst stated current practices should be followed until further discussion by the Board. It was moved and seconded (Blackhurst/Norris) to approve the Consent Agenda Item 1.2 Bills, and it passed unanimously. 2. REPORTS AND DISCUSSION ITEMS. 1. STATE OF THE TOWN. Mayor Pinkham presented a state of the Town address highlighting the following: the addition of two new Board members; a new Town Administrator; prudent management in the past has the Town in a good financial position; revenues are not keeping up with inflation and lag by 13% in 2012 over 2005; continue to review how to strengthen the economy moving forward to close the gap; capital projects – road maintenance and upgrades, transportation hub, CDOT enhancements, parking garage grant, MacGregor Avenue, Manford Avenue resurfacing, Prospect Avenue reconstruction, Bond Park, improvements to the Light and Power infrastructure, and Peacock Park improvements; Town continues to rely on its 500+ volunteers to provide services; reviewed 2012 Goals; the Town’s median age is 51.5% versus 36.1% for Colorado; future concerns include the financial status of the nation, state and county, disposable income of visitors, cost of living for the workforce, Board of Trustees – May 8, 2012 – Page 3 managing growth while preserving the Town’s character, and maintaining infrastructure. 2. 2012 REVISED IT CAPITAL EXPENDITURES. Superintendent Fraundorf stated the 2012 budget approved by the Town Board allocated $20,000 to improve or replace audio-visual components in the Board Room. Staff recommends reallocating the funds to increase services for the citizens, visitors and employees through improvements to the Board Room A/V system ($6,000), provide free, public wireless internet service in Town Hall, and if feasible, Bond Park ($7,500), and free, public wireless internet service in the Visitor Center ($6,500). The cost of the wireless service would include the signal, access computers, furniture if required, and associated wiring. There would be ongoing internet fees associated with providing the wireless service. Neither service would be attached to the Town’s network. Board support was heard – this would be a positive move making communication for the visitors easier during their stay, and the request is a simple reallocation of funds already budgeted. Superintendent Fraundorf stated the new wireless service should be available in June. 3. LIQUOR ITEMS. 1. APPLICATION FILED BY C-ZAK, INC., DBA RODEWAY INN OF ESTES PARK, 1701 N. LAKE AVENUE FOR A NEW TAVERN LICENSE (CHANGE OF CLASS). Town Clerk Williamson reviewed the application for a change in class from a Hotel and Restaurant liquor license to a Tavern license as required by the state liquor code. An H&R license requires 25% of sales receipts from food sales. As the hotel does not have an operational kitchen at present, the licensed premise is unable to meet the food receipt requirements. The applicant has submitted all required paperwork and fees. Lillian Ciezczak/Owner was present and stated she has completed TIPS training in the past and she would be willing to complete additional training when available. Mayor Pro Tem Blackhurst stated the TIPS training is important. He commented the licensee is the first line of defense of the liquor law and encouraged the business to continue training and to train their staff on the seriousness of the liquor laws. It was moved and seconded (Blackhurst/Phipps) to approve the change in class from a Hotel and Restaurant to a Tavern liquor license for C-Zak, Inc. dba Rodeway Inn of Estes Park, and it passed unanimously. 4. PLANNING COMMISSION ITEMS: Items reviewed by Planning Commission or staff for Town Board Final Action. 1. ACTION ITEMS: a. SPECIAL REVIEW 2012-02, COLORADO CARRIAGE & WAGON, Jim Rice/Owner. Planner Shirk stated the applicant has requested the operation of a horse-drawn carriage business in and around the downtown business district. He reviewed the application and the conditions of approval. The Planning Commission reviewed the application and recommended approval on April 17, 2012. It was moved and seconded (Blackhurst/Phipps) to approved Special Review 2012-02 subject to the findings and conditions recommended by the Estes Valley Planning Commission, and it passed unanimously. b. SPECIAL REVIEW 2012-03, HEARTS & TAILS CARRIAGE COMPANY, Jerry Higgason/Owner. Planner Shirk stated the applicant has requested the operation of a horse-drawn carriage business in and around the downtown business district. He reviewed the application and the conditions of approval. The Planning Commission reviewed the application and recommended approval on Board of Trustees – May 8, 2012 – Page 4 April 17, 2012. It was moved and seconded (Koenig/Blackhurst) to approved Special Review 2012-03 subject to the findings and conditions recommended by the Estes Valley Planning Commission, and it passed unanimously. Trustee Norris suggested the Special Reviews process should be reviewed for and simplified for these types of requests. He suggested the code be reviewed and amendments brought forward for consideration. Mayor Pro Tem Blackhurst agreed the item should be reviewed by Town staff rather than the current process. 5. ACTION ITEMS: 1. ORDINANCE #05-12 – AMENDING THE LEASE AGREEMENT WITH THE ESTES PARK LIONS CLUB FOR THE CONCESSION STAND AT STANLEY PARK FAIRGROUNDS. Manager Winslow stated the concession lease approved in April 2011 with the Estes Park Lion’s Club expires on December 31, 2012, 6 months prior to the expiration of the Club’s liquor license. In order to renew the liquor license, the Club must demonstrate possession of the property during the entire licensing period. Therefore, staff recommends amending the Lease Agreement to extend the term through June 30, 2013. Attorney White read the Ordinance into the record. It was moved and seconded (Blackhurst/Norris) to approve Ordinance #05-12, the motion passed with Trustee Koenig abstaining. 2. ESTES PARK MIDSUMMER FESTIVAL IN BOND PARK. Manager Winslow presented a new event application to the Community Development/Community Services Committee for the use of Bond Park by the Longs Peak Rotary Club on July 20-22, 2012 to conduct a Midsummer Festival. The Committee recommended approval of the event to the Town Board at their April 26, 2012 meeting. The festival would help the club with their fund raising efforts to support local organizations in the community. The event would be a local event emphasizing the participation by local businesses. Trustee Blackhurst stated the Bond Park citizen committee raised concerns on the number of events and recommended a cap of 8 events per year, the current number of approved events, due to noise, loose of parking, drawing business way from downtown merchants and eating establishments. Trustee Koenig stated she has received comments from downtown merchants to increase the number of events because it helps bring customers to town. It was suggested a debriefing occur after a new event is added to the park. It was moved and seconded (Ericson/Koenig) to approve the Midsummer Festival on July 20-22, 2012 in Bond Park sponsored by the Longs Peak Rotary, the motion passed unanimously. 3. ESTES PARK HOUSING AUTHORITY BOARD APPOINTMENTS. Rita Kurelja/Director of EPHA stated the Board advertised two open positions in the local paper, as well as a news blast by PIO Rusch, two additional media notices and placed the positions on the Trail Gazette and the Housing Authority websites. Interviews were conducted by two Housing Authority Board members Eric Blackhurst and Matthew Heiser of the four applicants. The Housing Authority recommends the appointments of Jack Dinsmoor and Sandy Good to the Authority’s Board for five-year terms expiring on April 30, 2017. After further discussion, it was moved and seconded (Koenig/Phipps) to approve the appointments of Jack Dinsmoor and Sandy Good to the Estes Park Housing Authority for five-year terms expiring April 30, 2017, the motion passed with Mayor Pro Tem Blackhurst abstaining. Board of Trustees – May 8, 2012 – Page 5 Trustee Ericson requested staff address term limits with Town appointments to boards and committees, and he requested the Housing Authority consider term limits in order to allow new individuals to serve. 4. WIEST RETAINING WALL CONTRACT. Director Zurn stated on January 24, 2012, the Town Board approved contracting with Van Horn Engineering to design and develop bid documents for the replacement of the retaining wall in the Wiest parking lot which has become unstable. The wall has bowed, leaning onto the private commercial building at 157 Moraine Avenue. The design includes a Keystone Block stepped retaining wall with planters, a 6.5 foot wide concrete sidewalk to be able to utilize a bobcat in the winter to remove snow, black vinyl coated fencing and modification to the parking lot stalls. A Request for Bids was published in mid April with three responses submitted: Firm City Fee Cornerstone Concrete Inc. Estes Park $61,751 Mountain Concrete Construction Estes Park $86,685 Cornerstone Engineering & Survey Estes Park $86,885 Staff recommends Cornerstone Concrete Inc. with a 15% contingency to cover contractor additions, construction management services and geotechnical testing services for a total cost not to exceed $71,014. Van Horn Engineering would provide construction management. The construction would begin on May 11th and be completed by June 11th. The project meets ADA requirements except for where the new sidewalk ties into the existing sidewalk on Moraine Avenue; however, there are exemptions provided for conditions such as these. It was moved and seconded (Blackhurst/Koenig) to contract with Cornerstone Concrete Inc. for the Wiest retaining wall for a not to exceed $61,751 with a 15% contingency, and it passed unanimously. 5. KIOWA RIDGE LAND PURCHASE (WATER TANK & OPEN SPACE). Interim Town Administrator Richardson stated staff was contacted by the Kiowa Subdivision developer Bob Koehler to sell two parcels of land located within the Kiowa Ridge Subdivision, including Outlot A (PID #3402409001) and Tract B (3402410002). Outlot A contains a Town owned water tank, with no current security. Tract B contains 7.96 acres of open space, wetlands, wildlife viewing, and lies within the Trails Master Plan for the valley and contains a Conservation Easement allowing trail right-of-way. The acquisition of Outlot A would allow the Town the ability to properly secure the water tank and the Town’s water distribution system. The property owner has offered the combined purchase of the properties for $50,000 and would be purchased using Water Enterprise funds ($40,000) and Open Space funds ($10,000). The Town does not have a policy on the acquisition of property. Board discussion and questions are summarized: questioned how the future uses of the open space lot would be determined; questioned if MacGregor Ranch would continue to mow the meadow; and has an appraisal been completed to determine the value of the properties and whether or not the asking price is reasonable. Interim Town Administrator Richardson stated staff reviewed the purchase prices with local realtors, determined the cost of acquiring ROW for the trail at $10,000, and determined the open space has a different intrinsic value. Mayor Pro Tem Blackhurst stated Outlot A is well within the cost of a commercial property and stated a trail easement would cost the Town considerably more than $10,000. Tom Gootz/Town citizen and ARD member stated support for the purchase of the property, which would reduce the density within the area. Board of Trustees – May 8, 2012 – Page 6 William Howell/Town citizen and Kiowa HOA President stated the HOA supports the Town purchasing the properties. The HOA would continue to maintain the subdivision signage on the edge of Tract B. He recommended the Town make improvements along the roadway for the numerous cars that stop along the edge of the roadway to view the wildlife. Director Zurn noted CDOT’s willingness to work with the Town to improve pulloffs in the area. It was moved and seconded (Norris/Phipps) to purchase Kiowa Ridge Subdivision Outlot A (PID #3402409001) and Tract B (3402410002) at a cost of $50,000 as outlined above, and it passed with Trustee Elrod voting “No”. 6. AGREEMENTS FOR VIRGINIA DRIVE, PARK LANE AND MACGREGOR AVENUE REHABILITATION PROJECT - WIDAWSKI PROPERTY. Staff has been in negotiations with the property owner Thomas Widawski and TeresaMaria Widawski and Prospect Inn, LLC to acquire necessary easements along Virginia Drive to finalize improvements in the area, including additional drainage pans and inlets to reduce surface runoff along Virginia Drive, slope the street away from the rock wall along Widawski property, transfer load from the existing sidewalk/retaining wall into the bedrock below with the installation of helical piers; and fill existing voids between the wall and the sidewalk to decrease settlement. An independent engineer assessed the improvements and requested the Town modify parking stalls along the retaining wall from asphalt to concrete to decrease drainage impact; modify handrail to include 4 inch picket spacing; maintenance of the sidewalk and handrail would be the Town’s responsibility once improvements are completed; and redesign and install an ADA complaint access ramp into the Widawski property. The additional improvements are estimated at $10,000. The project was approved with a 10% contingency and 7% of the contingency is available to pay for the additional improvements. After further discussion, it was moved and seconded (Blackhurst/Koenig) to approve the temporary construction easements and improvement agreement to construct improvements on Lot 9A, Amended Plat of Lots 9, 201, 11,12 and a portion of Lot 8, Block 1, Town of Estes Park owned by Thomas and TeresaMaria Widawski and Prospect Inn, LLC at an estimated cost of $10,000, and it passed unanimously. Whereupon Mayor Pinkham adjourned the meeting at 9:35 p.m. William C. Pinkham, Mayor Jackie Williamson, Town Clerk Town of Estes Park, Larimer County, Colorado, May 8, 2012 Minutes of a Regular meeting of the TOWN BOARD STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in Rooms 201/202/203 in said Town of Estes Park on the 8th day of May, 2012. Board: Mayor Pinkham, Mayor Pro Tem Blackhurst, Trustees Elrod, Ericson, Koenig, Norris, and Phipps Attending: Mayor Pinkham, Mayor Pro Tem Blackhurst, Trustees Elrod, Ericson, Koenig, Norris, and Phipps Also Attending: Interim Town Administrator Richardson, Town Attorney White, Supt. Fraundorf, Dir. Bergsten, Finance Officer McFarland, and Deputy Town Clerk Deats Absent: None Mayor Pinkham called the meeting to order at 4:30 p.m., and welcomed Trustees Norris and Phipps, representatives from Platte River Power Authority, and Central Colorado Water Conservancy District. FIBER OPTIC INFRASTRUCTURE. In 1998, Platte River Power Authority (PRPA) and the Town of Estes Park installed a ring of fiber optic cable around the Town and down Highway 34 to the PRPA offices. Western Area Power Administration (WAPA) transmission towers carry the fiber optic cable down Highway 34 and WAPA has assumed the ongoing maintenance of the fiber. In addition to construction of the ring, several laterals have been installed off of the ring to service various areas in the Town of Estes Park. The cable itself is made up of six tubes, each containing 12 strands of fiber for a total of 72 strands of usable fiber. Currently, PRPA utilizes strands for communications to substations and the Town of Estes Park uses fiber strands for communications between Town-owned properties and treatment plants. Additional strands are allotted for use by WAPA, Level 3 and Front Range Internet, Inc. 36 strands of fiber remain unallocated at this time and the lit fibers that are in use are not being used to capacity. Brian Moeck stated that at the time the fiber optic cable rings were installed in PRPA member municipalities, each municipality was offered the option to keep the excess surplus and manage and maintain the excess fiber. Longmont, which is the only PRPA municipality that has a communications utility, opted to retain the surplus capacity, with all other excess remaining under the ownership of PRPA. He said that each municipality is independent in management of the excess fiber and that revenue generated from an economic development opportunity within a municipality’s geographical area is returned to that municipality by PRPA. Recently, several local companies have expressed an interest in leasing available strands of fiber from PRPA and the Town for business development in Estes Park. It would be the responsibility of the interested company to develop a business case to present to the Town for access to the fiber. If the Town received an acceptable business case from an interested company, as owner and manager of the surplus capacity, PRPA would negotiate a lease between PRPA, the Town of Estes Park and the business entity, and work with the business to build a lateral in order to receive service. The Trustees concurred that the excess fiber capacity is a valuable asset to the Town and may be a consideration in regard to economic development opportunities and negotiating incentives. Town Board Study Session – May 8, 2012 – Page 2 PRPA WATER LEASE TO OIL AND GAS INDUSTRY. Platte River Power Authority has been approached by the oil and gas industry with a request to supply water for hydraulic fracturing (fracking) operations. Leasing water to the oil and gas industry represents an economic opportunity for Platte River Power Authority to bring in revenues to offset rate increases to the wholesale power rate. The PRPA Board will be asked to deliver a decision on the lease at their upcoming board meeting. In hydraulic fracturing operations water, sand, and chemicals are injected at high pressure into wells causing the rock layer to fracture. Fissures are created and sand particles lodge in the fissures to hole them open allowing natural gas to flow up the well. This fracturing process in combination with horizontal drilling has provided a viable means to develop the Niobrara Formation shale oil resources. Hydraulic fracturing has been occurring in Colorado since 1947 and, although the Energy Act of 2005 gave exemptions to the oil and gas industry, the State of Colorado has developed the most comprehensive oil and gas regulations in the nation. Randy Ray of the Central Colorado Water Conservancy District, and Bill Emslie of Platte River Power Authority were in attendance at the meeting to provide background to the Board. PRPA has an average of approximately 1600 acre-feet of reusable effluent per year that in the past has been used for augmentation and agricultural purposes. The effluent represents a long-term, reliable source of Windy Gap second use water. Supplying this water to the oil and gas industry is a promising prospect for PRPA and the Central Colorado Water Conservancy District (CCWCD). In addition to revenue generated for PRPA which could amount to $500,000 annually, CCWCD will generate revenue by leasing water storage facilities. The capital realized from the lease will then be used to construct water storage facilities to increase storage capacity within the CCWCD system. In regard to the amount of water used in the process, Mr. Ray said representatives of Hydro Advisors, which is the company seeking the water lease, estimate that 30% of the water injected into a well is lost with the remaining water returning to the surface after the well pressure has been released. With treatment the remaining water can be cleaned up, recycled and reused. He said that the amount of water used for fracking is less of a concern than the amount of truck traffic generated by the process, as trucks deliver and haul water to and from well sites. The Trustees discussed the following: Hydro Advisor, LLC is a water broker, not an oil and gas developer; ensure that the entities water is leased to are responsible; ensure that the water is not used outside of the district; what measures are taken to avoid contamination of shallow aquifers; what types of chemicals are used in the fracking process; how is the water that resurfaces from the well cleaned up; how is the water that cannot be cleaned up disposed of; and the Town would have no liability related to the PRPA water lease. Trustee Norris expressed concern with the variety and amount of chemicals used in the hydraulic fracturing process and whether adequate monitoring is done to ensure the chemicals are not causing contamination. Mayor Pro Tem Blackhurst said this is an economic question related to whether a lease to the oil and gas industry is a good use of water and said monitoring of the oil and gas industry should be left to the state regulators. Trustee Koenig said there is also a moral and ethical question related to endorsing participation in an activity that may be detrimental to the environment. The topic will be brought to the May 22, 2012, Town Board meeting to allow for public comment. At that time the Board will decide whether to support PRPA in entering into the water lease. There being no further business, Mayor Pinkham adjourned the meeting at 6:28 p.m. Town Board Study Session – May 8, 2012 – Page 3 Cynthia Deats, Deputy Town Clerk Town of Estes Park, Larimer County, Colorado, May 10, 2012 Minutes of a Regular Meeting of the PUBLIC SAFETY/UTILITIES/PUBLIC WORKS COMMITTEE of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town of Estes Park on the 10th day of May, 2012. Committee: Chair Blackhurst, Trustees Koenig and Phipps Attending: Chair Blackhurst, Trustees Koenig and Phipps Also Attending: Interim Town Administrator Richardson, Chief Kufeld, Dir. Bergsten, Dir. Zurn, and Deputy Town Clerk Deats Absent: None Chair Blackhurst called the meeting to order at 8:00 a.m. PUBLIC COMMENT. None PUBLIC SAFETY. MODEL TRAFFIC CODE, REVISED 2010 AND APPENDIX. In 2003 the Town Board adopted the Model Traffic Code. The Colorado Department of Transportation (CDOT) has since made revisions to the Code and staff is recommending that the recently published Model Traffic Code, Revised 2010 be adopted, along with an appendix to the Code. Chief Kufeld stated that the Code is widely used by Colorado municipalities for parking, speed regulation, and traffic control regulations, and said that the appendix contains regulations specific to Estes Park. The proposed appendix is less wordy, simpler to follow, and more consistent with existing signage and current practices in Estes Park. Attorney White is familiar with the Model Traffic Code and has reviewed the proposed changes to the appendix which include but are not limited to: removal of alternative fuel vehicle parking areas; the addition of day- use RV parking at the Transportation Hub, specified parking areas for Library Volunteers, Police, and the Mayor; and clarification of loading zone locations and time restrictions. Chief Kufeld noted that in order for regulations to be enforceable, they must be included in the appendix. The Committee discussed the following: incentives for downtown employees to park in outlying lots and take the shuttle into downtown for work; changing the time limit on the Brownfield’s parking lot to allow for more turnover; the appendix lists streets with posted speed limit signs only; consider aesthetics when posting signs in Bond Park area; and get feedback from Bond Park stakeholders and public as to whether parking limit signage should be replaced around Bond Park. The Committee recommends approval of an ordinance to adopt by reference, the Model Traffic Code, including the Appendix as presented. A public hearing will be held at the Town Board meeting on June 12, 2012. Trustee Koenig requested that a press release addressing changes to the Model Traffic Code and local regulations be prepared and include information related to an amendment restricting cell phone use while driving for those under 18 years of age. AMENDMENT TO MUNICIPAL CODE CHAPTER 9.10 – FIREWORKS. Subsequent to the adoption of the 2009 International Fire Code by the Estes Valley Fire Protection District (EVFPD), Fire Marshal Spears brought forward proposed amendments to the Estes Park Municipal Code related to fireworks. The proposed amendments would require an operational permit application to be submitted to the Public Safety/Utilities/Public Works Committee – May 10, 2012 – Page 2 EVFPD at least 30 days prior to the display, a review of the plans for the fireworks display, an inspection of the display site, and a review of procedures to follow in the case of a misfire. The Committee discussed requiring applications 30 days in advance of the event and wanted assurance that the requirement would not affect the fireworks display scheduled for July 4th. Fire Marshal Spears said the Fire Department staff will work with the firework contractor through the application process. Chair Blackhurst asked that information related to acquiring and filing the permit through the Fire District be included in the ordinance. Interim Town Administrator Richardson requested that the special event permitting process and the firework permitting process be coordinated and said administrative staff will address integrating the processes. The Committee recommended approval of an ordinance amending Municipal Code Chapter 9.10 Fireworks with minor changes as an action item at the May 22, 2012 Town Board meeting. UTILITIES. CHELEY COLORADO CAMPS LEASE FOR WINDY GAP WATER. In 2011, Cheley Colorado Camp submitted a water augmentation plan to the State of Colorado. As part of the plan Cheley has requested that the Town of Estes Park provide eight acre feet of Windy Gap water to meet their augmentation requirements. As an owner of Windy Gap water, the Town is able to provide Windy Gap water for augmentation. Attorney White drafted an agreement to lease the water to Cheley for a period of 20 years. The length of the lease allows for long-term planning and is more favorable for water court proceedings. Chair Blackhurst questioned the payment calculation which is based on the length of the agreement and the interest rate, and asked staff to re-check the calculations. The Committee recommended bringing the item forward as an action item at the May 22, 2012 Town Board meeting, and requested follow-up related to the amortization schedule and payment amount. LIGHT & POWER SERVICE CENTER ROOF REPLACEMENT. During an inspection in 2003 the Light & Power Service Center roof was found to be in need of repair. It was discovered that the original roof had not been installed properly which has lead to roof deterioration and leak issues. Following the inspection, the roof was repainted as a temporary, short-term fix because funds were not available to replace the roof at that time. The roof now needs to be replaced and upgraded to meet new building code requirements for snow load and wind speed. Five contractors have examined the roof, with three contractors submitting bids for the roof replacement: Anomaly Roofing $72,103.04 Apex Roofing Company $46,800.00 Majestic Roofing, LLC $50,185.00 A heavier gauge metal material will be used to replace the roof, and once the existing roof is removed, it will be examined and measured to determine if the installation of additional purlins will be necessary to meet new code requirements. A change order may be necessary if additional purlins are needed. Staff recommends awarding the contract to low bidder Apex Roofing Company, at a cost of $46,800 for the replacement of the Light & Power Service Center roof; and noted that if a change order is needed, the cost will remain within the $60,000 budgeted for the project. The Committee recommends approval of a contract with Apex Roofing Company in the amount of $46,800 for replacement of the L&P service center roof as outlined above from account #502-7001-580-32-22, budgeted. REPORTS. Reports provided for informational purposes and made a part of the proceedings. 1. Glen Haven Power Line Upgrade Project 2011-2012. The project is being done in- house which has resulted in a $200,000 savings versus using a contractor, and has provided L&P staff with valuable experience. L&P staff started the project in May Public Safety/Utilities/Public Works Committee – May 10, 2012 – Page 3 2011, and have completed 80% of the work to date, with an expected completion date of early June. 2. Allenspark Circuit Upgrade. Materials have arrived, property owners have been contacted, and work will begin on May 14, 2012. Tree cable will be utilized which is more wildlife friendly and reduces fire danger in the case of a downed line. The contractor has six months to complete the work. 3. Mall Road Intersection. L&P staff has completed work to underground utilities at the intersection. 4. LED Lights. Installation of LED lights along Highway 34 to Dry Gulch should be completed within the next two weeks. 5. Prospect Mountain Water. An agreement between the Bureau of Reclamation (BOR) and Prospect Mountain Water to supply water through the Rams Horn Tunnel expires in July 2012. The BOR is not interested in renewing this agreement. Prospect Mountain Water is working with the Public Utilities Commission (PUC) to determine what will be required related to the water service and system. Informal conversations related to the Town supplying Prospect Mountain Water Company with finished, potable water are ongoing. Ownership and maintenance of the water system would remain with Prospect Mountain Water Company. The Town may assist with an emergency interim agreement to provide water if Prospect Mountain Water is shut off from the Rams Horn tunnel supply until an agreement can be finalized with the Town. Dir. Bergsten noted that Prospect Mountain Water Company has a fairly new treatment system and by the Town supplying finished water the treatment system would become a stranded investment and have a financial impact on those customers. 6. Virginia Drive Project. The newly installed water line is in service. 7. Fiber Optic System. The Town’s contract with Level 3 expired several years ago, however, equipment belonging to Level 3 remains housed in Town Hall. The equipment is utilized by Airbits, LLC to provide internet service to local customers. Staff has been unable to contact Level 3 to renegotiate a contract or discuss how to address the equipment situation. Staff has had conversations with Town Attorney White and David Krumme, the owner of Airbits, as Mr. Krumme’s business is currently dependent upon use of this equipment. Discussions continue related to this topic and options for utilization of the fiber optic system. PUBLIC WORKS. No items. There being no further business, Chair Blackhurst adjourned the meeting at 9:20 a.m. Cynthia Deats, Deputy Town Clerk RECORD OF PROCEEDINGS Regular Meeting of the Estes Valley Planning Commission April 17, 2012 - 1:30 p.m. Board Room, Estes Park Town Hall Commission: Chair Doug Klink, Commissioners Ron Norris, John Tucker, Betty Hull, Rex Poggenpohl, Joe Wise, one vacant position. Attending: Chair Klink, Commissioners Norris, Hull, Poggenpohl, and Wise Also Attending: Director Chilcott, Planner Shirk, Town Board Liaison Elrod, Town Attorney White, and Recording Secretary Thompson Absent: Commissioner Tucker The following minutes reflect the order of the agenda and not necessarily the chronological sequence. Chair Klink called the meeting to order at 1:30 p.m. Chair Klink stated this was Commissioner Norris’s last meeting and expressed his appreciation for his service. There were seven people in attendance. 1. PUBLIC COMMENT None. 2. CONSENT AGENDA A. Approval of minutes, March 20, 2012 Planning Commission Meeting. It was moved and seconded (Norris/Poggenpohl) to approve the consent agenda as presented, and the motion passed unanimously with one absent and one vacancy. 3. A. SPECIAL REVIEW 2012-02, COLORADO CARRIAGE & WAGON B. SPECIAL REVIEW 2012-03, HEARTS & TAILS CARRIAGE COMPANY Planner Shirk reviewed the staff reports. Due to the similarity of the reviews, the staff reports will be discussed together and voted on separately. Planner Shirk stated carriage rides are a common request in Estes Park. To date, none have displayed operational problems. The requests were submitted to the Police Department and the Public Works Department, who did not express any operational concerns. Colorado Carriage & Wagon, owned by Jim Rice of Ft. Collins, proposed public pick-up and drop-off points at the Transit Center and Tregent Park. He does not have a specific route, but will be in the downtown area. Planner Shirk stated written permission by any private property owners would be required for stops other than those listed above. Hearts and Tails Carriage Company is owned by Jerry and Carol Higgason of Evans. The applicants proposed to base their operation out of the Elkhorn Lodge stables. Their public pick-up and drop-off points would also be the limited to the Transit Center and Tregent Park. They are working to obtain permission for specified stops on private property, including the Stanley Hotel, St. Bartholomew Church, and Our Lady of the Mountains Catholic Church. Planner Shirk stated written permission of any private property owners would be required. Planner Shirk stated the conditions of approval have been modified slightly from past year’s applications. Specifically, if traffic conflicts or other use conflicts occur on the streets or at the public stop locations, Town staff is authorized to restrict operations until the problem is corrected. This is intended to account for accidents, parade routes, periods of heavy traffic, or other instances of traffic hazards or congestion. To date, Planner Shirk does not recall any problems with this condition, nor does he remember ever having to put it in place. Staff recommended approval of the requests. Planner Shirk stated the Transit Center and Tregent Park are public properties; therefore, the Planning Commission is the recommending body, and the final decision would be from the Town Board. If the Planning RECORD OF PROCEEDINGS Estes Valley Planning Commission 2 April 17, 2012 Commission recommends approval, the Town Board would hear the review on May 8, 2012. STAFF AND COMMISSION DISCUSSION Commissioner Poggenpohl suggested a simplified review process for future requests. Planner Shirk stated the applicants would appreciate a more simple process. PUBLIC COMMENT – COLORADO CARRIAGE & WAGON Jim Rice, owner of Colorado Carriage & Wagon stated he has been in business for 11 years. While based in Ft. Collins, he also operates in Loveland, Cheyenne, and various shopping centers along the Front Range. He stated having a standard route would not be feasible because some customers prefer to be dropped off at locations other than the public pick-up and drop-off points. He stated his horse and carriage had never been a traffic problem, and is very conscientious when it comes to pedestrian safety. One standard pick up location makes it easier to water the horses and keep the horse manure in a closed receptacle. Commissioner Poggenpohl was not supportive of the carriage rides venturing into residential neighborhoods. CONDITIONS OF APPROVAL 1. Prior to operation, applicant shall obtain a business permit from the Town Clerk. Such application shall include a copy of a Certificate of Insurance for $1,000,000 to the Town, with the Town to be named as an additional insured. 2. Obtain written permission from property owners for specified stops on private property. 3. The route map shall include the following notes (may be on the back side of the map):  Signature block: APPROVAL: Approved by the Town of Estes Park Board of Trustees this _______ day of _____________, 2012. ______________________________ Bill Pinkham, Mayor  Conditions: 1. Revisions to the route and/or stops depicted on this map shall be subject to review and approval of Town staff. 2. No signage shall be allowed on public property. 3. If traffic conflicts or other use conflicts occur on the streets or at the public stop locations, Town staff is authorized to restrict operations until the problem is corrected. This is intended to account for accidents, parade routes, periods of heavy traffic, or other instances of traffic hazards or congestion. 4. All horses shall be diapered during times of service. 5. A copy of the business license and Special Review permit shall be kept with the carriage. It was moved and seconded (Hull/Wise) to recommend approval to the Estes Park Town Board for the proposed carriage rides provided by Colorado Carriage and Wagon (Special Review 2012-02) with the findings and conditions recommended by staff and the motion passed unanimously with one absent and one vacant position. PUBLIC COMMENT – HEARTS & TAILS CARRIAGE COMPANY Carol Higgason, owner of Hearts & Tails Carriage Company, stated their operation is based in Evans. They also operate at the Greeley Independence Stampede, the Festival of Trees in Greeley, and other locations. They have provided carriage services for the past six years for weddings in Estes Park, and are familiar with the area. She stated their horses will be diapered and they already carry insurance. Commissioner Poggenpohl commented that the applicants are welcome to attend the Town Board meeting on May 8th, and hoped they have a successful season. RECORD OF PROCEEDINGS Estes Valley Planning Commission 3 April 17, 2012 CONDITIONS OF APPROVAL 1. Prior to operation, applicant shall obtain a business permit from the Town Clerk. Such application shall include a copy of a Certificate of Insurance for $1,000,000 to the Town, with the Town to be named as an additional insured. 2. Obtain written permission from property owners for specified stops on private property. 3. The route map shall include the following notes (may be on the back side of the map):  Signature block: APPROVAL: Approved by the Town of Estes Park Board of Trustees this _______ day of _____________, 2012. ______________________________ Bill Pinkham, Mayor  Conditions: 1. Revisions to the route and/or stops depicted on this map shall be subject to review and approval of Town staff. 2. No signage shall be allowed on public property. 3. If traffic conflicts or other use conflicts occur on the streets or at the public stop locations, Town staff is authorized to restrict operations until the problem is corrected. This is intended to account for accidents, parade routes, periods of heavy traffic, or other instances of traffic hazards or congestion. 4. All horses shall be diapered during times of service. 5. A copy of the business license and Special Review permit shall be kept with the carriage. It was moved and seconded (Norris/Hull) to recommend approval to the Estes Park Town Board for the proposed carriage rides provided by Hearts and Tails Carriage Company (Special Review 2012-03) with the findings and conditions recommended by staff and the motion passed unanimously with one absent and one vacant position. 4. SPECIAL REVIEW 2012-01, ESTES PARK MEDICAL CENTER Planner Shirk explained that hospitals are listed as a use requiring Special Review in the RM-Residential Multi-Family zone district. Because the Estes Park Medical Center is a public hospital and a separate government entity, a Location and Extent Review is also required. If this application is denied by the Town Board, the hospital governing board has the authority to overturn that decision. Planner Shirk reviewed the staff report, stating the medical center was proposing to build a parking lot to handle staff parking. If approved, medical center staff would be directed to park on the west side of the property and in the new lot. The previous ambulance parking area has been relocated to the north side of the property. Planner Shirk stated the proposed lot would contain 23 parking spaces. No additional landscaping would be required. The proposal would include a pedestrian route for employee safety. A stormwater report has been approved by the Public Works department. Exterior lighting would need to comply with the Estes Valley Development Code. Pole lights in the proposed lots would be limited to 15-feet above grade. Planner Shirk encouraged the medical center to be aware of the height limit prior to ordering the light poles, making sure to allow for the height of the concrete base. Planner Shirk stated there is an existing duplex very close to the proposed lot. Because the duplex is owned by the medical center and is on the same property, setback regulations do not apply. PUBLIC COMMENT Brandon Pietsch/EPMC representative stated the interior of the existing parking lot on the northeast side of the property will become strictly patient/visitor parking. The existing duplex is currently the office for home-health care and hospice care, with a business use classification. RECORD OF PROCEEDINGS Estes Valley Planning Commission 4 April 17, 2012 Brenda Rains/adjacent property owner requested clarification about who would be parking in the proposed lot, and the purpose of increasing the number of parking spaces. Director Chilcott explained employees would be encouraged to park farther away from the buildings to allow easier access for patients and visitors. Ms. Rains was also concerned about drainage. Director Chilcott stated a new drainage pond will have a concrete pan, causing the stormwater to flow directly into the drainage swale Commissioner Hull commented that the stormwater report has already been reviewed and approved by the Public Works Department. Staff recommended approval of the Special Review with conditions. CONDITIONS OF APPROVAL 1. Prior to issuance of a demolition permit for the existing dwelling, applicant shall contact the Estes Park Water Department and Estes Park Sanitation District to finalize disconnection points and schedule fixture counts. Demolition permit shall not be issued without approval from the Water Department and Sanitation District. 2. Prior to issuance of grading permit, the stormwater report shall be subject to review and approval of the Public Works Department. 3. Exterior lighting shall comply with standards set forth in Section 7.9 of the development code. This limits the parking lot lighting to 15-feet high. It was moved and seconded (Wise/Norris) to recommend approval to the Estes Park Town Board for the proposed Estes Park Medical Center parking lot expansion (Special Review 2012-01) with the findings and conditions recommended by staff and the motion passed unanimously with one absent and one vacant position. 5. REPORTS Planner Shirk reported several pre-application meetings were held in the last month. A small drive-through coffee shop was proposed on Moraine Avenue adjacent to Cheesy Lee’s Pizza. Due to the minimal size of the structure, the Planning Commission would not be reviewing the plans. Staff assures compliance with the EVDC. Planner Shirk reported an application for an amended plat in the High Drive Heights Subdivision would probably be submitted within the next month or so. Planner Shirk reported building permits have been issued for The Timbers Townhomes. Commissioner Norris suggested providing this information to the Town Board so they are aware of the positive impact made by the amendment to the EVDC regarding townhomes. Planner Shirk met with another developer interested in creating a townhome project. Planner Shirk reported on the Accessory Dwelling Units (ADU) work session with the County Commissioners. They were concerned about the lack of a public review process and would not support the amendment. There was extensive public comment at the two previous Town Board meetings. On April 10, 2012, the Town Board voted 5-0 to disapprove the code amendment regarding ADUs. The amendment was not remanded to the Planning Commission. Planner Shirk stated there are some code conflicts that still need to be resolved. Accessory kitchens are allowed anywhere with a land use affidavit, and the existing code does not require the land use affidavit on lots sized 1.33 times the minimum lot size for the zone district. Director Chilcott reported on the A–Accommodations zone district density/bulk issue. The current regulations for A–Accommodations zoning could hinder redevelopment of older properties. Currently, if a property zoned A–Accommodations has limited kitchen facilities, the density is affected. Some communities have moved away from kitchens as they relate to density, as kitchens are not necessarily a meaningful way to determine the impact on the property or neighbors. Director Chilcott suggested studying the issue in small, manageable pieces. She will be working with Public Information Officer Kate Rusch to RECORD OF PROCEEDINGS Estes Valley Planning Commission 5 April 17, 2012 determine exactly what needs to be addressed. This topic has been discussed in study sessions with the Town Board and County Commission, but no actions have been taken. Director Chilcott also suggested taking input from the Estes Area Lodging Association (EALA) and other interested parties prior to drafting code language. Chair Klink stated the Planning Commission needs to be more informed about the issue prior to making recommendations. Director Chilcott stated this issue was on a priority list of potential code amendments several years ago. There were comments made by several Commissioners, including but not limited to: the importance of getting comments from EALA and the Wedding Association; and the desire to know where the Town Board stands on the issue prior to moving forward. Director Chilcott stated she would like to receive input from the recently installed Town Board to determine which items should be at the forefront of the Planning Commission’s workload. Commissioner Hull suggested having the Town Board revisit the priority list and reprioritize if necessary. Director Chilcott reported Community Services Director Betty Kilsdonk and Deputy Town Administrator Lowell Richardson have been working on a Volunteer Manual for approximately one year. The proposed manual was reviewed by the Town Board, who encouraged feedback from groups that utilize volunteers and who would be affected by the proposed manual. Director Chilcott commented that this manual was discussed at the Planning Commission study session, and several Commissioners voiced their opposition to the indemnification form. The Volunteer Manual will be discussed at the next Town Board meeting. There being no further business, Chair Klink adjourned the meeting at 2:30 p.m. ___________________________________ Doug Klink, Chair ___________________________________ Karen Thompson, Recording Secretary Rocky Mountain National Park Spring Briefing May/June 2012 Visitation For 2011 Rocky Mountain National Park visitation reached 3,345,614 visitors, a 6.94% increase over visitation last year. The Top 10 Days in 2011 were: 1. Sep. 24 30,931 *fee free day* 2. July 3 28,063 3. Sep. 4 27,415 4. Aug 13 26,778 5. July 31 24,788 6. July 23 24,642 7. July 30 24,443 8. Sep. 25 24,340 9. July 2 23,881 10. July 24 23,670 Fee Free Dates: • Our remaining Fee Free Days this year will be: June 9 (Get Outdoors Day), September 29 (National Public Lands Day), and November 10 to 12 (Veterans Day weekend). Mountain Pine Beetle Mitigation: • Focus is on mitigating hazard trees and hazard fuels in visitor use areas (roadways, trailheads, campsites, buildings, etc.). As of October 2011, we have cut more than 50,000 hazard trees in front country areas of the park. Hazard tree removal projects will incorporate temporary site closures or traffic delays as needed to ensure visitor safety and efficient project completion. A portion of the Sprague Lake Trail has been closed during weekdays in May (Monday-Thursday) to accommodate hazard tree removal. Pile burning from fuels reduction and hazard tree mitigation projects occurred throughout the winter of 2011/2012 in most frontcountry areas of the park. For more information on project dates, possible temporary and short term travel closures for public safety, and locations of hazard tree work, please refer to the Rocky Mountain National Park website and follow the links to the forest health page (www.nps.gov/romo). 2 5/18/2012 • Other Beetle Mitigation Work: Work continues beyond the trailheads to mitigate hazard trees at designated campsites for backcountry/wilderness users. The park is selectively applying an insecticide, carbaryl, to protect up to 7,000 high value trees on both the east and west sides of the park. When sprayed on the trunk of a pine tree, carbaryl acts as a repellant to keep the bark beetles from attacking the tree. High value trees are in front country locations such as campgrounds, historic landscapes, picnic areas, and visitor centers. They are important for shade, visual screening, cultural significance, and outstanding visual quality. To date, we have observed nearly 100 percent success from spraying. These site specific treatments will continue until the bark beetle outbreak has subsided. • Research: A USGS scientist will study the effects of mountain pine beetle induced tree mortality on water quality. The objectives will be to 1) quantify impacts by analyzing nitrogen, carbon, and phosphorus in streams and lakes relative to the timing and intensity of beetle induced tree mortality, 2) evaluate effects of management actions, and 3) use a model to predict nitrogen, carbon, and phosphorus concentrations in surface water and evaluate the importance of atmospheric nitrogen versus beetle induced nitrogen on surface water chemistry. Road Construction: • Bear Lake Road Reconstruction Phase II: Road construction on the remaining 5.1 miles of Bear Lake Road started in March 2012. Two years will be allowed for the completion of the work. Visitors can expect at least two 20 minute delays in both directions through the project. Night closures are being allowed for construction of retaining walls Sunday through Thursday nights 8 p.m. – 6 a.m. until May 18. Any additional night closures will be announced at least two week prior to occurring. Weekend work will be allowed except on holiday weekends. Due to the night closures, the Glacier Basin Campground will be closed for the summer of 2012. From May 29, through October 9, from 9:00 a.m. to 4:00 p.m., Bear Lake Road, approximately one mile south west of Moraine Park Visitor Center to Bear Lake, will be accessible by free shuttle bus only, seven days a week. Private vehicles will be allowed both directions prior to 9:00 a.m. and after 4:00 p.m. Visitors in private vehicles, who make the 9:00 a.m. cutoff time, will be allowed to leave throughout the day. Campgrounds: Glacier Basin Campground: For the 2012 season, the campground will be completely closed due to the reconstruction of the lower portion of Bear Lake Road. Since a portion of the campground was first-come, first-serve, we will have first-come, first-serve sites available at Moraine Park Campground during the 2012 season. Longs Peak Campground: Has been closed this winter and early spring due to ongoing hazard tree mitigation. It is projected to open by late May or early June. 3 5/18/2012 Other Projects: • Utility Line Replacement: Contracted work is underway to replace 50+ year old sewer lines in the headquarters area and in the Glacier Basin Campground. Water distribution lines will be replaced from the headquarters east wells to the mainline. New sewer septic systems will be installed at Tuxedo Park and Kaley Cottages. • Lily Lake Dam: The Bureau of Reclamation recently rated the Lily Lake Dam as a high hazard dam because of the population at risk below the dam and the potential failure modes exhibited by the dam. Failure of the dam is not imminent, and park staff routinely inspect the dam. The Bureau of Reclamation will be installing an early warning system immediately downstream from the dam as an added safety measure. The park initially identified two alternatives to address the risks associated with the dam: either remove or repair the dam. In February, the park initiated public scoping to gather public input on the two alternatives. During public scoping the park learned that it is legally bound to retain the water rights in Lily Lake, and the dam is essential to this purpose. Therefore, the only option available to the park is to repair the dam. The NPS Dam Safety Program, the Bureau of Reclamation, and the park are proceeding with the design of the repairs and completing the necessary environmental and cultural compliance. It is anticipated that the repair work will begin this fall and will be funded by the NPS Dam Safety Program • Beaver Meadows Visitors Center Renovation: The renovation, which began last fall, was completed and staff moved back into the main visitor center on March 1, several months early. The project consisted of four parts: a new ADA accessible elevator (lift) between floors, conversion of restrooms to two family restrooms, a bridge between the front plaza and the walkway around the outside of the auditorium and a new information desk. The building is a National Historic Landmark and was dedicated in 1967. It serves as park headquarters and houses many of our staff. Nearly 400,000 visitors pass through the building annually. Elk & Vegetation Management Plan: • Over the course of the next few years expect to see limited additional fencing constructed and limited culling for population control. The following activities have taken place or are planned: o Elk exclosures constructed to restore aspen and willow communities: ƒ 2008 approximately 70 acres of willow protected, 2009 ~44 acres of aspen protected, 2010 ~75 acres of aspen and willow protected, 2011~ 16 acres of willow in the Kawuneeche Valley. ƒ In 2012, plans may include protecting willow/aspen in Upper Beaver Meadows, plus a couple of small (less than 3 acres) aspen stands on the east side. ƒ The fences are temporary and will come down when restoration goals are met; each site will be evaluated every 5 years. 4 5/18/2012 o Culling for CWD and fertility control research (east side) – field work completed 2011 (female elk in this study were subject to a full necropsy, waiting for researchers to analyze and publish results): ƒ 20 female elk were culled for research (of 33 total) during the winter of 08/09. ƒ 25 female elk (of 48 total) were culled winter of 09/10. ƒ 34 female elk (of 50 total) were culled winter of 10/11. o Limited culling of female elk for population control (east side): ƒ 13 female elk were culled (of 33 total) during the winter of 08/09. ƒ 23 female elk were culled winter of 09/10 (of 48 total). ƒ 16 elk culled winter 10/11 (of 50 total). ƒ Zero elk culled winter 11/12 ƒ Meat was tested for CWD. Those testing CWD-detected were used to support the Colorado Parks and Wildlife mountain lion research project. Fire Management Plan: Rocky Mountain National Park staff are preparing a new Fire Management Plan for the park. The current Fire Management Plan is currently based on a 1992 plan which underwent minor revisions in 2004. This new plan will more fully address the challenges the park now faces with the bark beetle epidemic, other forest health issues, and community wildland fire protection. Public meetings were held in August in Estes Park and Grand Lake. The new Fire Management Plan should be approved and in place soon. Permits and Fees: • Entrance Fees: No Changes in 2012. • Annual Pass: The RMNP annual pass remains $40. • Daily/7-day Pass: Remains $20. • Joint Pass with Arapahoe National Recreation Area: Remains at $50. • Overnight Backcountry Use Permits: Remains at $20. • Commuter Permit: This special use permit was implemented on July 15, 2011 and provides for non-recreational travel through the park (Trail Ridge Road) for local area residents. Referred to previously as the “Tri-County Waiver,” now referred to as the “Commuter Permit,” this privilege is currently applicable to residents (or property owners) within Larimer, Boulder and Grand counties who reside within 50 miles of a park entrance. There is an administrative fee for the permit of $20 and the permit is valid for three years. Eligible residents can apply by fax, email, in person or on-line for these permits. 5 5/18/2012 Visitor Shuttle Operations: • Visitor Transportation System: The shuttle system continued to see an overall increase in ridership in 2011. The hiker shuttle, which originates at the Estes Park Visitor Center, saw a large gain in riders with a 57% increase over last year. However the Bear Lake route remained flat with a slight decrease of .2% over 2011. Overall the system served 442,905 riders for the 2011 season. For the 2012 season, the shuttle system will be slightly modified due to the Bear Lake Road reconstruction. The shuttle routes typically interchange at the park’s Park & Ride facility but for the 2012 season all routes will transfer at the Moraine Park Visitor Center. This change will allow both the Hiker and Moraine routes to not be impacted by construction delays. Also in 2012, the park will be conducting a pilot Intelligent Transportation Systems (ITS) project with the Town of Estes Park, Colorado Department of Transportation, and the Federal Highway Administration. The project encourages both town and park visitors to utilize the town’s new satellite park facility along HWY 36 and use the shuttle systems that serve the town and the park as an alternative transportation means. Trails: • Alpine Ridge Trail at Alpine Visitor Center: The installation of a sustainable step system and a hybrid asphalt tread will be completed in 2012 and the trail will reopen in 2013. • Lake Haiyaha: Work on the Lake Haiyaha loop trail will continue in 2012 with an anticipated completion date of fall 2012. A 400 foot re-alignment has been completed and is now open to the public. Work on the Alberta Falls Trail will continue this fall. This project is being funded by the Rocky Mountain Nature Association. • Chasm Falls: Rehabilitation work will begin on the Chasm Falls trail in 2012. Work includes the construction of a viewing area. • Flattop Trail: Rehabilitation work will begin in 2012 on the Flattop Trail. Work will include repairing drainage structures and retaining walls where necessary. Most of the work will be completed using stone to match the original CCC construction techniques. The project is anticipated to last 4 years with the work beginning at the bottom and moving uphill. • North Inlet Trail: Rehabilitation work will begin in 2012 on the North Inlet Trail. Work will include repairing drainage structures and retaining walls where necessary. Most of the work will be completed using stone to match the original CCC construction techniques. The project is anticipated to last 4 years with the work beginning at the bottom and moving uphill. • Finch Lake Trail: Rehabilitation work will begin in 2012 on the Finch Lake Trail. Work will include construction of log causeways and drainage improvement. Most work will improve drainage issues caused by the Ouzel Fire. This project is anticipated to last 2 years. 6 5/18/2012 • Coyote Valley Trail: Work on the Coyote Valley Trail will focus on repairing the tread lost during last year’s Colorado River flooding. Funding for this project will be provided by the RMNA Sustainability Fund. • Timber Lake Trail: This trail was closed ½ mile beyond the trail head due to trail and slope instability. If conditions are favorable, this emergency closure may be lifted for pedestrian traffic only in 2012. • Lily Lake: The installation of a new, accessible fishing pier, supported by helical piles, will replace the older pier that has failed due to frost heaving of the hand driven piles that support the deck. This project has received support from the Rocky Mountain Nature Association. • All Trails: Spring opening this season has the crews removing numerous trees that blew down last winter during major wind events. • East Shore Trail: Rocky Mountain National Park has prepared a Scope of Work for the preparation of an Environmental Assessment (EA) that will consider bicycle use on that portion of the East Shore Trail that extends north from the Shadow Mountain Dam to the park boundary south of Grand Lake. The EA contractor should be on board before the summer field season. Public scoping will also begin this summer. Grand Ditch: • Restoration Activities: The park is continuing the preparation of an Environmental Impact Statement to guide the restoration of the 2003 breach of the Grand Ditch. The preparation is continuing to be a joint effort with a consulting company, Parsons, who is assisting with writing the EIS. During March 2012, the Draft Environmental Impact Statement (DEIS) was completed and released to the public for review and comment. The review period closes May 25, 2012. Public meetings for the DEIS were held in Fort Collins, CO and Grand Lake, CO in April, 2012. Restoration will focus on restoring healthy trajectories for both hydrological function (e.g. surface and groundwater dynamics) and ecological community evolution (e.g. riparian, wetland, and upland habitat). Five alternatives are currently being considered that include combinations of the following along a gradient from no action to maximum restoration: Allowing natural (passive) restoration to occur where appropriate; stabilizing steep, unstable slopes with an engineered solution; removing deposited sediment and redistributing it through the impacted area or elsewhere; removing dead timber from the impacted area and/or using it in the restoration process; regarding and recontouring areas to restore appropriate morphology and function; native plant restoration with appropriate, locally gathered plant materials; may require the use of motorized equipment such as chainsaws, heavy lift helicopters, and earthmoving equipment; may require temporary fencing to protect native plant restoration areas. A final EIS and Record of Decision are anticipated to be completed during the winter of 2012/2013. 7 5/18/2012 New Technology: • The park continues to explore ways to utilize new technology to improve opportunities to stay connected with the park. Our website (nps.gov/romo) has nearly 2400 pages and is the most popular way for our visitors to gather park information. You may follow us on Twitter at RMNPOfficial or on Facebook at Rocky Mountain National Park. Visitor Survey and Economic Generation Report: • In February 2011, in cooperation with the University of Idaho, a survey of park visitors was conducted. Nearly 800 surveys were distributed randomly to winter visitors at three entrance stations. This is the first major winter visitor survey in the park since 1995. The final report for the winter survey is now posted on the University of Idaho website under Visitor Services Project Document Downloads at: www.psu.uidaho.edu. The Executive Summary of the winter survey is attached. The Executive Summary of the summer 2010 survey was made available in the fall of 2011. Please contact Larry Frederick at 970-586-1220 for further information. • In addition, a Money Generation Model is being finalized. It looked at the economic impact of the park on the surrounding region and communities. The report will show that 2,545 jobs are created in the region due to expenditures by the park and its visitors. The park generates over $177 million in direct sales in the region. An Executive Summary is attached. ENGINEERING Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Scott A. Zurn, PE, CFPM, Public Works Director Kevin Ash, Public Works Civil Engineer Date: May 22, 2012 RE: Bond Park Phase V Preferred Design Alternative Background: To design the Phase V improvements to Bond Park, the Town of Estes Park has contracted with a design team that provides expertise in landscape architecture and civil engineering. Phase V will include a new “art walk” edge along Elkhorn Avenue, an updated entrance plaza at the corner of Elkhorn and MacGregor Avenue and a park gateway pavilion at the corner of Elkhorn and Park Lane. To date, the consultants have conducted two design workshops with the Bond Park Stakeholder's Group. The workshops have resulted in an updated park use program as well as a preferred design concept for Phase V construction, scheduled to begin this fall. The following concepts include: Concept 1 is the design proposed in the 2010 Bond Park Master Plan. The Elkhorn streetscape is enhanced with wide flower bed planters, a small central entrance plaza, and seat walls that curve back toward the street. Concept 2 is the Stakeholder's preferred choice; it playfully opens up the south edge of the park with a series of curving spaces edged by seat walls, trees, and colorful plantings. This design creates a slower-paced, social gathering pathway in addition to the main Elkhorn sidewalk. Concept 3 presents a curvilinear shaped seatwall edge pattern along Elkhorn Avenue that allows for direct integration into the park. Half circle shaped tree and flower bed planters break up the Elkhorn sidewalk. Common to all Concepts is the sloping roof and stone wall pavilion proposed for the southwest corner of the park, a children’s climbing structure and additional festival tent locations. These concepts were made available for public comment on May 8th, through the Town’s website and at the Human Resources Department. As of May 18th, only one comment has been received and it supports Concept 2. Budget: Preliminary cost estimates put the design and construction total at approximately $400,000. This project is to be funded through the Larimer County Open Space Fund. Sample Motion: I move to approve/not approve Concept 2 (the Stakeholder’s preferred choice) as the selected alternative for Bond Park Phase V. With this approval, Staff will proceed with the design team to create final plans and bid documents for construction of the project this fall. BOND PARK PHASE VBOND PARK  PHASE V May 22 2012May 22, 2012 •A Clear Identity:Consistent What are the Possibilities? •A Clear Identity: Consistent  Physical Forms, Materials, &  Character •An Iconic Gateway: Accenting  the Prime NE‐SW Park  Axis •New Activities•New Activities ‐SE Picnic Grove: Children’s Play,  Additional Festival Tents ‐Elkhorn Edge: Gathering Enhanced  by Seating, Art, Planting & Parade  MC Location ‐SE & SW Corners: Gathering g Enhanced by Gateway, Seating &  Enhanced Elkhorn Edge Phase V Site Analysis Park  Use Diagram Concept Plan Alternatives 1 2Modified Original Playful Curves 3Heart of the Park 4Sawtooth Edge The ‘Vision’ Comments from the April 3, 2012 Workshop Elkhorn Edge:  An ‘Art Walk’ that encourages gathering. SE Picnic Grove:  A Family Destination Activity SE & SW Corners:  Gathering Enhanced by the Gateway,  Seating , & the Enhanced Elkhorn Ed ge.g g Elkhorn Avenue Edge A ‘A t Wlk’ith SlFl i Pl t Sh dAn ‘A rt Walk’ with Seasonal Flowering Plants, Shade  Trees, Ample Seating, Accommodations  for  the  Transit Stop and Parade MC are Required andTransit Stop and Parade  MC are Required, and  Destination Access Points  on both Corners.  Night  Lighting Should Compliment the Elements andLighting Should Compliment the Elements and  Electrical Hook Ups are Required for  Events. Permeability Informal Seatingg Snow Removal Vehicular  Access Parade  MC Gateway Structures There is no Need to Be Literally Historic in CharacterThere is no Need to  Be Literally Historic in Character. Provide an Iconic Symbolism that Fits with the FestivalProvide an Iconic Symbolism that Fits with the Festival  Character of Bond Park. The Style Should not become Dated. Beaver Meadows  Visitors Center is well Liked. Tent  Layout 1 –Master Plan 1 1 1 1 1 1 1 1 1 1 1 2 –Playful Curves 2 2 2 2 2 2 2 2 2 2 2 3 –Heart of the Park 3 3 3 3 3 3 3 3 3 3 3 Gateways ‐Examples Concept Gateway Alternatives 1 2 3 4 5 6 Concept Gateway Alternative  ‐5 Play Event  ‐Climber Schedule Preliminary Cost EstimatePreliminary Cost Estimate •Alternative 1 ‘Master Plan’–$450 000Alternative 1 Master Plan  $450,000 •Alternative 2 ‘Playful Curves’ – $490,000 li3‘f h k’$ 8 000•Alternative 3 ‘Heart of the Par k’ –$485,000 Page 1 Memo UTILITIES DEPARTMENT To: Honorable Mayor Pinkham Town of Estes Park Board of Trustees Town Administrator Lancaster From: Reuben Bergsten, Utilities Director Date: May 22, 2012 RE: PRPA Water Lease to Oil and Gas Industry Background: Platte River Power Authority has been approached by a water broker Hydro Advisors LLC (Mr. Craig Harrison) to lease water for the oil and gas industry. Hydraulic fracturing has been going on in Colorado since 1947. Combining horizontal drilling and fracturing, also referred to as fracking, has made it economically feasible to develop the Niobrara Shale oil resources. In October of 2009 the "Jake" well started production and produced 50,000 barrels of oil in its first 90 days. This liquid hydrocarbon discovery has a higher value than natural gas and has generated a new demand for oil and gas exploration in Colorado. Production from these wells is not possible without horizontal drilling and fracturing. Fracturing requires the use of water and, after the fracking process is completed, most of the water is discharged into deep wells. A number of benefits can be listed for the development of this resource: • Reduce future electric rate pressures from PRPA • Reduce our dependency on foreign energy • Financially support the Central Colorado Water Conservancy District • Reduce future natural gas rate pressures by increasing the supply The benefits must be weighed against the drawbacks. To begin addressing the drawbacks, a common visual understanding of gas wells is required. Page 2 Figure 1 shows the drilling distance of the Niobrara Shale to be approximately 7,000 feet deep. The water aquifer resides at less than 1,000 feet. Throughout most of Colorado there exists a 4,000 feet thick layer of impermeable Pierre Shale. Figure 1, Niobrara Shale, Denver-Julesburg Basin Additional measures must be taken to maintain separation around the well shaft. Figure 2 shows the details of well shaft construction. The purpose of the surface casing is to seal off the shallow water aquifer. The lower production casing serves to seal off the oil and gas resource and ensure it only goes up through the well pipe. Page 3 Figure 2, Well Shaft Steel and Concrete Casing Page 4 Figure 3, Fracturing Process Figure 3 depicts the fracturing process which is one component of the well drilling process. Page 5 The Energy Act of 2005 gave exemptions to the oil and gas industry. Much to the credit of our Colorado State Government, Colorado has developed the most comprehensive oil and gas regulations in the nation. The EPA has recently (4-12-2012) issued standards to reduce harmful air pollution associated with oil and natural gas production. Shale oil production with horizontal drilling and fracturing is a relatively new process. As more experience and data becomes available, our regulatory bodies must continue to appropriately regulate the activity. Colorado has done an excellent job regulating this industry. Platte River Power Authority - Surplus Reuse Water Supply Platte River has an average 1,606 acre-feet per year of surplus reusable effluent resulting from its Windy Gap order and a Reuse Agreement with the City of Fort Collins. Platte River has marketed this surplus effluent over the years with a limited degree of success. In the past, there have only been two markets for the lease of surplus effluent: agricultural and augmentation. Agricultural water is considered single use and typically rents for approximately $10 to $40 per acre-foot. Augmentation water requires a reusable source and prices vary, but can be up to $500 per acre-foot. Demand for reusable water in Northern Colorado has historically been limited and Platte River has been compelled to lease its excess water primarily for lower value single use. The demand for lease of water has changed significantly over the past year due to oil and gas well development in our region. A number of entities including the cities of Loveland, Longmont and Greeley lease surplus water for this purpose. Both reusable and single use water have been leased. A request was recently made of Platte River to lease of all its surplus reusable effluent for oil and gas development. Platte River’s surplus effluent is in demand because a large portion of the effluent is reusable and can be used to extinction anywhere within the State of Colorado, thereby making it an ideal supply of water for oil and gas well development. Because of the demand for Platte River’s surplus reusable effluent for oil and gas well development, Platte River’s Board of Directors wishes to develop a policy addressing leases for this purpose. The following links provide additional information concerning this topic. Link to 4/24 Loveland City Council Study Session http://atlas.fcgov.com/2012_04_24LovelandSS/index.htm# Link to the League Of Women Voters Video on Fracking Below is a link to the “Cross Currents” program on YouTube (1.5 hours) http://www.youtube.com/watch?v=nhEZI4950c4 Sample Motion: We move to approve/deny supporting the Platte River Power Authority in leasing water for oil and gas operations. UTILITIES DEPARTMENT Memo To: Honorable Mayor Pinkham Town of Estes Park Board of Trustees Town Administrator Lancaster From: Reuben Bergsten, Utilities Director Date: May 22, 2012 RE: Cheley Colorado Camps Lease for Windy Gap Water Background: Frank H. Cheley started his camps in 1921. Cheley Colorado Camps are an asset to the Estes Valley. Last year Cheley had to submit an augmentation plan to the State of Colorado. Windy Gap water can be used for augmentation. As an owner of Windy Gap water, the Town of Estes Park serves its community by leasing this water to entities that have been required to submit an augmentation plan. As part of that plan, Cheley has requested the Town to provide eight (8) acre/feet of Windy Gap water to meet their augmentation requirements. The Town of Estes Park has several other agreements to fulfill augmentation plans , including Glacier View, the Continental Water Bank and Marys Lake Campground. The attached agreement was drafted by Town Attorney White and agreed upon by Don Cheley as owner of Cheley Colorado Camps, Inc. Budget: 503-0000-380.20-00, Miscellaneous Revenues Staff Recommendation: Staff recommends that the Town enter into a Water Lease Agreement with Cheley Colorado Camps, Inc., for eight (8) acre/feet of Windy Gap water for their augmentation requirements. Sample Motion: I move to recommend/not recommend entering into a Water Lease Agreement with Cheley Colorado Camps, Inc. for eight (8) acre/feet of Windy Gap water. WATER LEASE AGREEMENT THIS LEASE AGREEMENT, (“Lease”) is made and entered into as of the _____ day of __________________, 2012, by and between the TOWN OF ESTES PARK, a municipal corporation, (“Town”), LESSOR, and CHELEY COLORADO CAMPS, INC., a Colorado Corporation, (“Cheley”), LESSEE. WITNESSETH: WHEREAS, the Town is the allottee of units of Windy Gap Project water (“Windy Gap Water”) as such units are defined in the Allotment Contract between the Municipal Subdistrict of the Northern Colorado Water Conservancy District (“Municipal Subdistrict”) and the Town. The Town utilizes its Windy Gap Water as part of an augmentation and exchange plan decreed in Case No. 11CW279, District Court, Water Division 1. The Town also owns units of Colorado Big Thompson Project water (“CBT Water”) which it may use to firm the yield of its Windy Gap Water pursuant to the collateralization policies and regulations of the Northern Colorado Water Conservancy District (“Northern District”) and the Municipal Subdistrict; and WHEREAS, Cheley owns and operates a summer camp known as Cheley Colorado Camps and other specialty camps on the following properties: (1) Land O’ Peaks property, located at 3960 Fish Creek Road, Estes Park, Colorado; (2) Boys’ Trail’s End Ranch, located at 2793 Dunraven Glade Road, Glen Haven, CO 80532; and (3) Girls’ Trail’s End Ranch, located at 1395 Fox Creek Road, Glen Haven, CO 80532; (d) Gypsy Grounds, 160 acres in the NW ¼ of the SE ¼, NE ¼ of the SW ¼, and the W ½ of the SW ¼ of Section 8, Township 4 North, Range 72 West, 6th P.M.; and (e) Pierson Meadows, 160 acres in the NW ¼ of the SW ¼ and the S ½ of the SW ¼ of Section 17, as well as the NE ¼ of the NW ¼ of Section 20, Township 4 North, Range 72 West of the 6th P.M. All of the aforementioned properties, including any contiguous parcels owned by Cheley, are collectively referred to herein as the “Camp Property”; and WHEREAS, pursuant to this Lease, the Town desires to lease to Cheley a portion of its reuse Windy Gap Water or other fully consumable water, which water has been included as a potential source of augmentation or exchange water for use in Cheley’s pending augmentation plan in Case No. 11CW279 in District Court, Water Division No. 1 (“Water Court”). NOW THEREFORE, in consideration of the mutual promises and covenants contained herein, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Town and Cheley hereby agree as follows: 1. Term. The term of this Lease shall be for twenty (20) years, beginning on the date of execution of this Agreement and shall terminate on December 31, 2032, unless terminated sooner pursuant to the provisions of this Lease. Cheley has the right to renew this Lease upon written notice to the Town for an additional twenty (20) years following the end of the original twenty year term if the water delivered under this Lease remains in surplus of the Town’s needs. The renewal lease rate is to be determined according to the mutual agreement of the parties based 2 upon reasonable good faith negotiation and taking into consideration the Town’s water supply requirements. 2. Use of Lease Water. Cheley shall use the water supplied by the Town pursuant to a court approved plan for augmentation or exchange, or pursuant to a State Engineer approved temporary substitute supply plan, to replace out-of-priority water depletions caused by out-of- priority diversions from water rights owned or leased by Cheley. 3. Delivery of Water. Delivery of Windy Gap Water shall be from Lake Estes at the Lake Estes outfall. The Town will make deliveries of the Windy Gap Water, as directed by Cheley, upon reasonable advance notice. The specific timing and amounts of these deliveries will be determined by the Water Court and/or the State Engineer pursuant to the terms of the Cheley’s decreed plan for augmentation or exchange or pursuant to a State Engineer approved temporary substitute supply plan(s). 4. Water Leased. The Town shall supply 8 acre-feet of fully consumable, second use Windy Gap Water for use by Cheley pursuant to the terms and conditions of this Lease. 5. Annual Payment. Cheley agrees to pay the Town as follows: a. An annual lease payment of $4,886.00 ($8,300.00 per acre-foot amortized at 4% over 20 years) for each year of the Lease. b. A usage charge of $120.00 per year for each acre-foot of water ordered. c. A debt service charge payment of $1,680.00 ($210.00 per acre-foot) for the years 2012 – 2017. d. A one time administrative charge of $1,000 payable within thirty (30) days of the effective date of this Lease. e. The annual lease payment and debt service charge payment shall be non-refundable and not contingent upon Cheley’s actual usage of water during any individual year of this Lease. f. Cheley shall inform the Town in writing prior to November 1st of each calendar year the amount of Windy Gap Water, in acre-foot increments and up to a maximum of 8 acre-feet, Cheley intends to use in the upcoming year. The usage charge in Subsection (b) above shall be based on said order and that amount is non-refundable in the event Cheley’s actual usage is less than the amount designated the previous November. g. All payments shall be made on or before February 1 of each calendar year without notice from the Town. If Cheley does not make payment when due, the Town has the option of terminating the Lease under the provisions of the “Default” Paragraph herein. 3 h. The usage charge set forth in paragraph b. above shall be reviewed at the end of every third calendar year to determine whether or not the usage charge reflects the actual cost per acre-foot for delivery of Windy Gap Water to the Town pursuant to the rules and regulations of the Municipal Subdistrict. Actual usage charges shall include annual assessment for operations, carriage contract charges, and power and pumping costs. In the event that the Town wishes to adjust the per acre-foot usage charge, the Town shall provide said calculation to Cheley, along with supporting documentation, prior to the end of each third calendar year. 6. Cheley’s Right to Reduce or Terminate Lease. In the event that Cheley does not need Windy Gap Water for augmentation water due to connection to the Upper Thompson Sanitation District or otherwise reduces its need for water, Cheley has the right to terminate or reduce the maximum amount of acre-feet supplied pursuant to this Lease without penalty. In order to terminate this Lease or reduce the maximum amount of water leased, Cheley shall give the Town a minimum of 180 days written notice prior to the end of any calendar year of its termination of this Lease or reduction in the amount of augmentation water. Any reduction of augmentation water shall be on an acre-foot basis. In the event that Cheley reduces the maximum amount of augmentation water, the annual payments set forth in paragraphs 5 a, b, and c above shall be reduced pro-rata. In the event that Cheley reduces the maximum amount of augmentation water supplied under this Lease, pursuant to the terms and conditions of this Paragraph, Cheley shall not have the right to later request the amount be added back to the Lease. In other words, any reduction in the maximum amount of augmentation water supplied under this Lease is permanent during the term of this Lease. However, nothing herein precludes Cheley from entering into a separate lease with the Town for additional augmentation water. 7. Augmentation Plan. Cheley shall obtain Water Court approval of its Plan for Augmentation or Exchange in Case No. 11CW279. All such proceedings shall be conducted by water rights counsel and engineering consultants selected by Cheley at Cheley’s sole cost and expense. No application, stipulation, or consent decree shall be filed, signed, or adopted by Cheley without prior review by and consent of the Town; provided, however, that in no event shall the Town withhold such consent by reason of any requirement that is not specifically addressed in this Lease. The Town agrees to conduct its review of any applications, stipulations, or consent decrees in a timely fashion, not to exceed thirty (30) days unless further time is approved by Cheley. The Town shall not file a statement of opposition to Cheley’s water court application and shall provide such information and assistance as is reasonably requested by Cheley, its water rights counsel, or its engineering consultants. No change of the Town’s water rights shall be applied for or reviewed in such proceedings. Cheley shall be solely responsible for operating and maintaining any measuring devices as may be required by the Water Court or State Engineer to operate the augmentation plan. Cheley shall also be solely responsible for preparing, maintaining, and compiling accounting forms or other reports required by the State Engineer in connection with the augmentation plan, to the extent not otherwise required from the Town. The Town shall, however, cooperate with Cheley in compiling said accounting and other reports. Cheley shall promptly provide 4 the Town with copies of any reports (including accounting forms) to or correspondence with the State Engineer relating to the use of the Windy Gap Water in the augmentation plan. The Town shall cooperate with Cheley to amend this Agreement if necessary to satisfy the requirement of the State Engineer and/or Water Court with respect to the augmentation plan. Nothing herein precludes Cheley from filing for supplemental or additional plans for augmentation and exchange utilizing the water leased herein, so long as the terms of this Lease are satisfied. 8. Approval. Cheley will be responsible for obtaining all necessary authorizations, approvals, water court decrees, and permits from any and all private entities, and local, state, and federal agencies, as may be required to effectuate this Lease. Cheley shall provide copies of any such authorizations, approvals, and permits to the Town upon its request. 9. Untreated Water. The water delivered to Cheley under this Lease is untreated or non- potable water of whatever quality and is now or in the future available from the sources specified herein. Delivery of non-potable water under this Lease will be on an “as is” basis only, and the Town is does warrant the quality of the water. The Town does not warrant the suitability of the water for any particular purpose. 10. Firming of Windy Gap Water. To reduce variability associated with the yield of Windy Gap Water and to enable the delivery of water pursuant to this Lease, the Town shall utilize its CBT Water to firm up or collateralize the Windy Gap Water leased in this Agreement in accordance with the policies and regulations of the Northern District and the Municipal Subdistrict. 11. Costs and Charges. The Town shall be responsible for payment of the annual debt service and the United States Bureau of Reclamation fixed charge allocated to the Town’s Windy Gap Water and all carriage and pumping charges allocated and accrued to the Windy Gap Water which the Town pays to the Municipal Subdistrict during the term of this Lease. The Town shall also be responsible for any firming or collateralizing expenses, which it incurs as a result of its firming the yield of its Windy Gap Water due, without limitation, to storage of water or borrowing CBT Water. 12. Curtailment. The Town represents that, under reasonable and foreseeable circumstances, it should have adequate water to deliver to Cheley under this Lease. Cheley recognizes that the water provided hereunder is presently surplus to the Town’s needs, but that the Town’s water supply is dependent upon natural water resources that are variable in quantity of supply from year to year, and which may be affected by causes beyond the Town’s control. The Town shall not be liable for failure to adequately anticipate availability of the Town’s water supply or for an actual failure of the Town’s water supply. In times of such shortage or failure, the Town may refuse to supply water or curtail the amount of water provided pursuant to this Lease in order to meet the Town’s reasonable municipal needs for water, provided that the Town shall, before curtailing the release of water pursuant to this Lease, first endeavor to (1) conserve existing water resources controlled by the Town so as to save sufficient water to provide to Cheley and/or (2) locate an alternative water source suitable for Cheley’s augmentation 5 purposes. If the Town is still unable to provide water to Cheley as envisioned in this Lease, the Town shall notify Cheley thirty (30) days in advance of any interruptions of delivery. 13. Assignment. Cheley may assign its rights and interests under this Lease to any person or entity, provided that the assignee assumes all of Cheley’s obligations under this Lease and takes the rights and interests subject to the provisions of this Lease, Cheley must provide written notice of such assignment to the Town; however, the water that is the subject of this Lease may not be assigned for use other than for the augmentation of out-of-priority depletions resulting from diversions for use on the Camp Property. This Lease shall be binding upon and inure to the benefit of Cheley and the Town and their respective successors and assigns. 14. Default: Remedies. A default shall be deemed to have occurred if either party breaches its obligations hereunder and fails to cure such breach within thirty (30) days of written notice from the non-breaching party specifying the breach. Waiver or failure to give notice of a particular default or defaults shall not be construed as condoning or acquiescing to any continuing or subsequent default. In addition to other legal remedies available to it for a default, including specific performance and damages, the non-breaching party shall also have the right to cancel the Lease by giving written notice of cancellation after the event of default as defined herein. 15. Entire Agreement. This Lease constitutes the entire agreement between the parties and supersedes all other prior and contemporaneous agreements, representations, and understandings of the parties regarding the subject matter of this Lease. No supplement, modification, or amendment of this Lease shall be binding unless executed in wiring by the parties. No representations or warranties whatever are made by any party to this Lease except as specifically set forth in this Lease or in an instrument delivered pursuant to this Lease. 16. Full Authority. The undersigned represent that they have full authority to enter this Agreement on behalf of the respective parties. 17. Enforcement. This Lease shall be construed and governed in accordance with the laws of the State of Colorado, and it shall be deemed performable in Larimer County, Colorado. This Lease may be enforced in an action for specific performance, injunctive relief, or damages in the District Court, Larimer County, Colorado. 18. Paragraph Headings. The headings of the paragraphs of the Lease are inserted solely for the convenience of reference and are not a part of and are not intended to govern, limit, or aid in the construction of any term or provision herein. 19. Payments and Notices. Any payments and notices required or permitted to be given under this Lease shall be in writing and shall be delivered by United States certified mail, postage prepaid, or by hand delivery, directed to the following addresses: LESSEE: Cheley Colorado Camps, Inc. Attn: JeffCheley 601 Steele Street, P.O. Box 6525 Denver, CO 80206 LESSOR: Town of Estes Park Attn: Town Administrator P. O. Box 1200 Estes Park, CO 80517 Any such notices shall be deemed to be effective on the earlier of the date of its actual receipt or the third day after the same is deposited with the United States Postal Service. Either party, by notice given as provided above, may change the address to which future notices are to be sent. STATE OF COLORADO ) ) COUNTY OF \fltl) c.r ) LESSEE: Cheley Colorado Camps, Inc. -'}jim The foregoing Agreement was acknowledged before me this )~~ day of Na..r~ ,2012, by Jeff Che1ey, President of Cheley Colorado Camps, Inc. d and official seal. otary POh-be - My Commission expires: ~ (ciS \N 6 7 LESSOR: Town of Estes Park ______________________________ By: STATE OF COLORADO ) ) COUNTY OF ____________ ) The foregoing Agreement was acknowledged before me this _____ day of ____________, 2012, by ___________________, ______________ of the Town of Estes Park. WITNESS my hand and official seal. __________________________________ Notary Public SEAL My Commission expires: _____________