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HomeMy WebLinkAboutPACKET Town Board Study Session 11-13-2018 Tuesday, November 13, 2018 TOWN BOARD 5:00 p.m. – 6:45 p.m. STUDY SESSION Rooms 202/203 4:45 p.m. - Dinner 5:00 p.m. Broadband Financing and Next Steps. (Director Hudson & Director Bergsten) 5:45 p.m. Changes to VEP Intergovernmental Agreement with Larimer County. (Town Administrator Lancaster) 6:05 p.m. Estes Transit for 2019. (Transit Manager Wells) 6:35 p.m. Trustee & Administrator Comments & Questions. 6:40 p.m. Future Study Session Agenda Items. (Board Discussion) 6:45 p.m. Adjourn for Town Board Meeting. Informal discussion among Trustees concerning agenda items or other Town matters may occur before this meeting at approximately 4:30 p.m. AGENDA 1       2 FINANCE DEPARTMENT Report To: Honorable Mayor Jirsa Board of Trustees Through: Town Administrator Lancaster From: Duane Hudson, Finance Director Date: Nov 13, 2018 RE: Broadband Financing and Next Steps Objective: To present an update on proposed financing options for construction of a new broadband service as a division of the Light & Power (L&P) Fund. Present Situation: The February 2015 Broadband Special Election resulted in 92% in favor of taking back our right to provide municipal broadband services. Since that election, staff have worked with the Estes Park EDC, Colorado Department of Local Affairs and the Town Board to develop options to improve broadband access (high-speed internet). This effort included a Broadband Expansion and Technical Assistance Strategy Report (2015), a Take-Rate Assessment (2016), and a complete design and business proforma (2018). Our website, https://www.colorado.gov/pacific/townofestespark/broadband, has more details. Over the last few months staff have been working with Financial Adviser Jim Manire of Hilltop Securities, Inc. on financing options. We’ve determined it is best if broadband is a division of the L&P Fund. This improves our financing options and leverages synergies with our existing smart grid fiber infrastructure. We've completed a review of cash flow projections, bonding requirements and various other considerations. Staff are now ready to move forward to the next stage and hire a bond underwriter to help develop the final debt service structure and get the bond issuance prepared for market. Please keep in mind the following amounts are based upon the best information we have available. Staff continues to pursue cost reductions and provide phased construction options. Up until the time of issuance, we can reduce the amount of bonds to be sold as we begin to work with an underwriter and staff have more refined cost data. 3 Total construction is currently estimated at $28,000,000. The bonds will be issued as L&P Revenue Bonds, pledging the revenues of the L&P Fund, including both the electric and broadband revenues. These proposed L&P Revenue Bonds will benefit from the established credit history of the L&P Fund instead of relying upon a new Broadband Utility and its unproven revenue stream. The L&P Fund has one outstanding bond issue, the Light and Power Revenue Bonds Series 2007. To sell the broadband bonds at the best interest rates, the balance of this existing bond issue should be refunded (refinanced) by inclusion within the broadband financing bond issue. This refunding is currently calculated to be $3,370,193 but will vary slightly depending on market conditions at the time of bond sale. The issue also includes capitalized interest of $4,278,947 to cover debt service for three years during the construction period. We anticipate the system will generate sufficient revenues after that third year to cover operations and debt service. Use of capitalized interest helps eliminate concerns about having insufficient revenues during the financially intensive startup period. The issue also includes $900,000 in working capital to finance operations during the first year. Use of working capital and capitalized interest is intended to protect the electric revenue stream from broadband costs, allowing the broadband division to stand on its own. Bond issuance costs are estimated at $313,040. The total debt issuance, based on current estimates, will be $36,862,180 as follows: 28,000,000 Construction Funding 3,370,193 Refunding of Outstanding L&P Bonds 4,278,947 Capitalized Interest 900,000 Working Capital 313,040 Cost of Issuance 36,862,180 The basic remaining steps in this process are: 1) Town Board authorizes staff to issue a RFP for Bond Underwriters (tentative date 11-27) 2) Town Board votes to change the Municipal Code adding Broadband to the Electric Enterprise. 3) Bond Underwriter proposals are evaluated and a staff recommendation is prepared 4) Bond Underwriter recommendation is approved by the Town Board. 5) Staff continue cost refinement efforts to finalize bond amount. 6) Town Board authorizes the bond sales with specified parameters of bond terms and interest rates. 4 7) If necessary, Town Board adopts a cost reimbursement resolution to recoup costs incurred before actual bond sale is completed. 8) Bids for the bonds are received 9) The Finance Director, in consultation with the Bond Underwriter and the Financial Advisor, as well as Town Staff, evaluates the bids and selects the low bidder 10) Bond sale agreement is executed and bond sale closing occurs. Proposal: There are three primary methods of sale, competitive sale, negotiated sale, and private placement. Based on the nature of the bond project, market conditions, and the desire to structure the bond maturities in a specific manner for operational purposes, and after consultation with the Town’s Financial Adviser, I am recommending the Town use the negotiated sales process. In a negotiated sale, the Town selects the underwriter in advance of the bond sale. The Town financing team works with the underwriter to bring the issue to the market and negotiates all rates and terms of the sale. In advance of the sale, the Town will determine compensation for the underwriter. Prior to the bid date, the Town Board would be asked to set parameters of an acceptable interest rate on the bonds based on the Financial Adviser and the Bond Underwriter’s recommendations. The bids are then conducted and if the bid is within the Town Board specified parameters and acceptable to the Finance Director, the bond sale agreement will be executed fixing the interest rates on the bonds. Staff are requesting permission to issue an RFP for a bond underwriter to continue the process. Staff are expecting to issue bonds in the second half of 2019. Advantages: This is the next step in creation of a Town owned and operated broadband service. Disadvantages: This is the largest debt issuance the Town has considered to date, obligating the L&P Fund to 30 years of ongoing debt payments. Action Recommended: The Town Board will be asked for permission to issue an RFP for bond underwriters at the Nov 27th regular Town Board meeting. Finance/Resource Impact: This will significantly impact the L&P Fund, including a liability for the amount of the bonds, and creating ongoing obligations for debt service each year. Level of Public Interest The Broadband Service is one of the highest priorities for the community. There has been and continues to be significant public interest in this project as it moves forward. 5       6 INTERGOVERNMENTAL AGREEMENT FOR THE ESTES PARK LOCAL MARKETING DISTRICT This Intergovernmental Agreement for the Estes Park Local Marketing District (“Agreement”) is effective this day of , 2017 20 (“Effective Date”), between the Town of Estes Park, Colorado (“Town”) and the Board of County Commissioners of Larimer County, Colorado (“County”). The Town and County may collectively be referred to in this Agreement as “Parties.” I. RECITALS A.The Local Marketing District Act, C.R.S. 29-25-101 et seq., provides for the organization of local marketing districts (“Act”). B. Pursuant to the Act, local governments in combination may create a local marketing district by contract to exercise the functions authorized by the Act following receipt of a petition for the organization of a local marketing district from the requisite number of owners of commercial real property in the proposed service area. C. The Town and County entered into an Intergovernmental Agreement for the formation of the Estes Park Local Marketing District (“District”) dated August 26, 2018September 12, 2018 (“Initial IGACurrent IGA”). D. The Estes Park Local Marketing District and the implementation of a two percent (2%) marketing and promotion tax on the purchase price paid or charged to persons for rooms or accommodations in the District to fund the services of the District was approved by the voters at a general election held on November 4, 2008. E. The Parties seek to amend and restate the Initial Current IGA to provide clarification of certain terms and address matters not included in the Initial Current IGA. To this end, this Agreement replaces and supersedes the Initial IGA as of the Effective Date hereof. II. CONSIDERATION Now, therefore, in consideration of the Recitals set forth above which are incorporated herein, and the covenants and conditions contained here, the Parties agree as follows. III.TERMS AND CONDITIONS 1. Name and Purpose. The name of the District is the Estes Park Local Marketing District. The purpose of the District is to promote the continued vitality of commercial business areas within the Town and County. 2. Boundaries of Service Area. The Service Area is the geographical area described and/or depicted on Exhibit “A” to this Agreement. Town Administrator Draft 7   3. Powers. The powers of the District include those expressly set forth in C.R.S. 29- 25-111 and 112 and those powers impliedly necessary to implement and carry out the express powers, except as otherwise provided in this Agreement.   4. Elections.   4.1 Should the District seek or be required to submit any question to an election, such election shall be held in accordance with Colorado Constitution Article X, Section 20, the Uniform Election Code of 1992, C.R.S. 1-1-101 et seq., and/or the Colorado Local Government Election Code, C.R.S. 1-13.5 110 et seq., as applicable.   4.2 The Town Clerk and the County Clerk and Recorder shall assist the District in conducting elections.   4.3 The District shall pay the costs incurred in conducting such election.   4.4 The Town Clerk shall be the designated Election Official for elections and shall be responsible for the wording of the ballot issues and certifying the ballot issues to the County Clerk and Recorder.   4.5 The County hereby delegates to the Town the authority to enter into the agreement Concerning Election Services with the County Clerk and Recorder for purposes of conduction an election as part of a coordinated General Election.   5. Board of Directors for the District.   5.1 Powers. The Board of Directors for the District shall have the legislative power of the District and is authorized to implement and carry out the annual operating plan approved by the Town and County.   5.2 Number. The Board of Directors shall be comprised of seven members.   5.3 Appointment. The Board of Directors shall be appointed by the County and Town as follows:   5.3.1 The Town shall appoint five (5) members.   5.3.2 The County shall appoint two (2) members.   5.4 Term. A term for purposes of Board membership shall be four (4) years. Terms shall be staggered so that two (2) members are appointed each year and one (1) member is appointed in the fourth year.   5.5 Successors. Each member shall serve until his/her successor is appointed by the Town or County respectively. 8   5.6 Term Limits. No member may serve for more than two (2) consecutive terms. Notwithstanding the foregoing, the Town or County may waive the term limit in the event that either the Town or County in their sole discretion determines that there are no qualified applicants for a vacant Director position and an otherwise term limited Director wishes to serve another term. The section shall not apply to any Town or County Elected official serving on the Board of Directors of the District.   5.7 Residency. Each Director, with the exception of any member of the Larimer County Board of Commissioners who may be appointed to the Board, shall be a resident of the Service Area of the District for at least one (1) year prior to his/her appointment and shall continue to be a resident of the Service Area during his/her entire term.   5.8 Officers. The officers of the Board of Directors shall consist of a Chair and a Vice-Chair. Each officer shall serve for one (1) year commencing with the first meeting in January of each year. The Chair and Vice-Chair may serve for two (2) consecutive one-year terms. The Chair and Vice-Chair shall be elected by the members of the Board of Directors. The Vice-Chair shall serve as the Chair in the absence of the Chair.   5.9 Bylaws. The Board of Directors shall act in conformity with Bylaws mutually adopted, and as may be amended from time to time, by the Town and County.   5.10 Quorum. Four (4) members shall constitute a quorum of the Board of Directors. A majority of those members present at a meeting shall be necessary for the Board to act.   5.11 Attendance. Members shall attend all meetings, including special meetings. In the event any member is absent for three (3) consecutive regular meetings or a total of four (4) regular meetings in a calendar year, the Town or the County may remove its respective appointed member and designate a new member to fill the vacancy.   5.12 Vacancy. The Town or County shall fill a vacancy of one of its appointed members as soon as practical.   5.13 Meetings. The Board of Directors shall hold regular meetings once each month. The Board of Directors may hold special meetings as deemed necessary. Meetings of the Board of Directors shall be subject to the provisions of C.R.S. 24-6-401 et seq. (Colorado Sunshine Law) as applicable. The Board of Directors shall act by motion or resolution.   5.14 Removal. The members of the Board of Directors serve at the pleasure of the Town and County and have no property or other enforceable interest in their appointment. A majority of the collective governing members of the County and Town (i.e., six (6) members) may remove any member of the Board of Directors or the entire Board of Directors with or without cause. 9   6. Operating Plan   6.1 The District shall file with the Town and with the County no later than September 30 of each year an Operating Plan specifically identifying services to be provided by the District, any Marketing and Promotion Tax to be levied by the District, and such additional information as may be appropriate or required to inform the Town and County as to the activities, services, and funding of the District in the upcoming calendar year. The Operating Plan shall include a proposed budget for the next fiscal year.   6.2 The Town, County or both may require the District to supplement the Operating Plan or budget when necessary.   6.3 The Town and County shall review the Operating Plan shall approve, modify or disapprove the Operating Plan within thirty (30) days after receipt of the Operating Plan and all requested documentation relating thereto, but and shall approve, modify or disapprove the Operating Plan no later than December 5 of the year in which such documents are filed.   6.4 The services and financial arrangements of the District shall conform so far as practical to the approved Operating Plan.   6.5 The District may amend the Operating Plan from time to time with the approval of both the Town and County.   7. Duration and Dissolution of the District.   7.1 The District shall remain in effect until and unless on or before July 1 of any calendar year, either the Town or County provides written notice to the other of its intent to terminate this Agreement. In such event, the District shall automatically terminate on December 31 of the year in which such notice is given.   7.2 Notwithstanding the foregoing, neither this Agreement nor the District may be terminated, repealed or rescinded so long as the District has any outstanding financial obligations.   8. Distribution and Division of District Assets.   8.1 In the event of termination of the District pursuant to this Agreement or by order of any court having jurisdiction, all assets of the District shall be divided between the Town and County based upon the percentage of marketing and promotion tax collected from the Town and from the unincorporated area of the County in the previous calendar year to the extent feasible.   8.2 In the alternative, such assets may be sold for the best price obtainable and the proceeds divided between the Town and County based upon the percentage of marketing and promotion tax collected from the Town and from the unincorporated area of the County in the previous calendar year. 10   9. Notices.   9.1 All notices, demands or other documents required or desired to be given, made or sent to the Town or County under this Agreement shall be made in writing and shall be deemed effective upon mailing or personal delivery.   9.2 If mailed, said notices, demand or documents shall be mailed, by regular mail, postage prepaid addressed as follows:   Town of Estes Park Attn: Town Administrator Post Office Box 1200 Estes Park, CO 80517   Board of County Commissioners of Larimer County Attn: Chair Post Office Box 1190 Fort Collins, CO 80522   10. Amendment. This Agreement may be amended in writing at any time by mutual agreement of the Town and County.   11. Governmental Immunity. The Town and County agree that both Parties are relying on and do not waive, by any provision of this Agreement, the rights, immunities and protections provided by the Colorado Governmental Immunity Act, C.R.S. 24-10-101 et seq., as may be amended from time to time, or otherwise available to the Parties or any of their officers, agents or employees.   12. Current Year Fiscal Obligations. Any financial obligations by either the Town or County or requirements for future appropriations shall constitute only currently budgeted expenditures. Any financial obligations of the Town or County under this Agreement are subject to each Party’s annual right to budget and appropriate the sums necessary to provide the services set forth herein. No provision of this Agreement shall be construed or interpreted as creating a multiple fiscal year, direct or indirect debt or other financial obligation of either or both Parties within the meaning of any constitutional or statutory debt limitation. This Agreement shall not directly or indirectly obligate either party to make any payments beyond those appropriated for each party’s then current fiscal year. No provision of this Agreement shall be construed to pledge or create a lien on any class or source of either Part’s monies, nor shall any provision of this Agreement restrict the future issuance of either Party’s bonds or any obligations payable from any class or source of such Party’s money.   13. Dispute Resolution.   13.1 Either the Town or the County may request mediation of any dispute about or related to the terms and conditions of this Agreement. The request for dispute resolution shall be submitted in writing to the other party. 11     13.2 The Town and County shall mutually agree on a mediator. If they are unable to agree, the Town and County shall each select a mediator. The two mediators shall then select mediator to conduct the dispute resolution.   13.3 The Town and County shall participate in the dispute resolution process in good faith. The dispute resolution process shall be concluded within sixty (60) days of filing of the request for dispute resolution. If the dispute is not resolved by this process, either or both Parties may enforce the terms and conditions of this Agreement as provided in Section 14 of this Agreement.   14. Enforcement. The Town and County intend that this Agreement is binding upon both of them and that either of them shall be permitted to specifically enforce any provision of this Agreement in a court of competent jurisdiction.       TOWN OF ESTES PARK, COLORADO       By:   Attest:       Clerk to the Town Board       BOARD OF COUNTY COMMISSIONERS OF LARIMER COUNTY, COLORADO       By:   Attest:       Clerk to the County Board       Approved as to form:       County Attorney   12 INTERGOVERNMENTAL AGREEMENT FOR THE ESTES PARK LOCAL MARKETING DISTRICT This Intergovernmental Agreement for the Estes Park Local Marketing District (“Agreement”) is effective this day of , 2017January 1, 2019 (“Effective Date”), between the Town of Estes Park, Colorado (“Town”) and the Board of County Commissioners of Larimer County, Colorado (“County”). The Town and County may collectively be referred to in this Agreement as “Parties.” I. RECITALS A.The Local Marketing District Act, C.R.S. 29-25-101 et seq., provides for the organization, governance, and operation of local marketing districts (“Act”). B. Pursuant to the Act, local governments in combination may create a local marketing district by contract to exercise the functions authorized by the Act following receipt of a petition for the organization of a local marketing district from the requisite number of owners of commercial real property in the proposed service area. C. The Town and County entered into an Intergovernmental Agreement for the formation of the Estes Park Local Marketing District (“District”) dated August 26, 2018 (“Initial IGA”). D. The Estes Park Local Marketing District and the implementation of a two percent (2%) marketing and promotion tax on the purchase price paid or charged to persons for rooms or accommodations in the District to fund the services of the District was approved by the voters at a general election held on November 4, 2008. E.The Town and County entered into a second Intergovernmental Agreement for the governance, administration, and operation of the Estes Park Local Marketing District effective September 19, 2017 (“current IGA”). EF. The Parties seek to amend and restate the Initial current IGA to provide clarification ofaddress certain terms and addressthe governance of the District matters not included in the Initial current IGA. To this end, this Agreement replaces and supersedes the Initial current IGA as of the Effective Date hereof. II. CONSIDERATION Now, therefore, in consideration of the Recitals set forth above which are incorporated herein, and the covenants and conditions contained here, the Parties agree as follows. III. TERMS AND CONDITIONS 1.Name and Purpose. The name of the District is the Estes Park Local Marketing District. The purpose of the District is to promote the health, safety, prosperity, security, and general welfare of the habitants and the property owners of the District and promote the continued vitality of commercial business areas within the Town and County. 2. Boundaries of Service Area. The Service Area is the geographical area Town Attorney Draft 13 described and/or depicted on Exhibit “A” to this Agreement. 14   3. Powers. The powers of the District include those expressly set forth in C.R.S. 29- 25-111 and 112 and those powers impliedly necessary to implement and carry out the express powers, except as otherwise provided in this Agreement.   4. Elections.   4.1 Should the District seek or be required to submit any question to an election, such election shall be held in accordance with Colorado Constitution Article X, Section 20, the Uniform Election Code of 1992, C.R.S. 1-1-101 et seq., and/or the Colorado Local Government Election Code, C.R.S. 1-13.5 110 et seq., as applicable.   4.2 The Town Clerk and the County Clerk and Recorder shall assist the District in conducting elections.   4.3 The District shall pay the costs incurred in conducting such election.   4.4 The Town Clerk shall be the designated Election Official for elections and shall be responsible for the wording of the ballot issues and certifying the ballot issues to the County Clerk and Recorder.   4.5 The County hereby delegates to the Town the authority to enter into the agreement Concerning Election Services with the County Clerk and Recorder for purposes of conduction an election as part of a coordinated General Election.   5. Board of Directors for the District.   5.1 Powers. The Board of Directors for the District shall have the legislative power of the District and is authorized to implement and carry out the annual operating plan approved by the Town and County.   5.2 Number. The Board of Directors shall be comprised of seven members.   5.3 Appointment. The Board of Directors shall be appointed by the County and Town as follows:   5.3.1 The Town Board shall appoint five (5) members. One or two Town appointees shall be members of the Town Board. Said appointed Town Board members shall serve as Directors of the District only during their term as members of the Town Board.   5.3.2 The Board of County Commissioners shall appoint two (2) members. One County appointee shall be a member of the Board of County Commissioners. Said appointed County Commissioner shall serve as a Director of the District only during his/her term as County Commissioner.   5.4 Term. A term for purposes of Board membership shall be four (4) years. Terms shall be staggered so that two (2) members are appointed each year and one (1) member is appointed in the fourth year.  15   5.5 Successors. Each member shall serve until his/her successor is appointed by the Town or County respectively. 16   5.6 Term Limits. No member may serve for more than two (2) consecutive terms. Notwithstanding the foregoing, the Town or County may waive the term limit in the event that either the Town or County in their sole discretion determines that there are no qualified applicants for a vacant Director position and an otherwise term limited Director wishes to serve another term.   5.7 Residency. Each Director be a resident of the Service Area of the District for at least one (1) year prior to his/her appointment and shall continue to be a resident of the Service Area during his/her entire term.   5.8 Officers. The officers of the Board of Directors shall consist of a Chair and a Vice-Chair. Each officer shall serve for one (1) year commencing with the first meeting in January of each year. The Chair and Vice-Chair may serve for two (2) consecutive one-year terms. The Chair and Vice-Chair shall be elected by the members of the Board of Directors. The Vice-Chair shall serve as the Chair in the absence of the Chair.   5.9 Bylaws. The Board of Directors shall act in conformity with Bylaws mutually adopted, and as may be amended from time to time, by the Town and County.   5.10 Quorum. Four (4) members shall constitute a quorum of the Board of Directors. A majority of those members present at a meeting shall be necessary for the Board to act.   5.11 Attendance. Members shall attend all meetings, including special meetings. In the event any member is absent for three (3) consecutive regular meetings or a total of four (4) regular meetings in a calendar year, the Town or the County may remove its respective appointed member and designate a new member to fill the vacancy.   5.12 Vacancy. The Town or County shall fill a vacancy of one of its appointed members as soon as practical.   5.13 Meetings. The Board of Directors shall hold regular meetings once each month. The Board of Directors may hold special meetings as deemed necessary. Meetings of the Board of Directors shall be subject to the provisions of C.R.S. 24-6-401 et seq. (Colorado Sunshine Law) as applicable. The Board of Directors shall act by motion or resolution.   5.14 Removal. The members of the Board of Directors serve at the pleasure of the Town and County and have no property or other enforceable interest in their appointment. A majority of the collective governing members of the County and Town (i.e., six (6) members) may remove any member of the Board of Directors or the entire Board of Directors with or without cause. 17   6. Operating Plan   6.1 The District shall file with the Town and with the County no later than September 30 of each year an Operating Plan specifically identifying services to be provided by the District, any Marketing and Promotion Tax to be levied by the District, and such additional information as may be appropriate or required to inform the Town and County as to the activities, services, and funding of the District in the upcoming calendar year. The Operating Plan shall include a proposed budget for the next fiscal year.   6.2 The Town, County or both may require the District to supplement the Operating Plan or budget when necessary.   6.3 The Town and County shall approve, modify or disapprove the Operating Plan within thirty (30) days after receipt of the Operating Plan and all requested documentation relating thereto, but no later than December 5 of the year in which such documents are filed.   6.4 The services and financial arrangements of the District shall conform so far as practical to the approved Operating Plan.   6.5 The District may amend the Operating Plan from time to time with the approval of both the Town and County.   7. Duration and Dissolution of the District.   7.1 The District shall remain in effect until and unless on or before July 1 of any calendar year, either the Town or County provides written notice to the other of its intent to terminate this Agreement. In such event, the District shall automatically terminate on December 31 of the year in which such notice is given.   7.2 Notwithstanding the foregoing, neither this Agreement nor the District may be terminated, repealed or rescinded so long as the District has any outstanding financial obligations.   8. Distribution and Division of District Assets.   8.1 In the event of termination of the District pursuant to this Agreement or by order of any court having jurisdiction, all assets of the District shall be divided between the Town and County based upon the percentage of marketing and promotion tax collected from the Town and from the unincorporated area of the County in the previous calendar year to the extent feasible.   8.2 In the alternative, such assets may be sold for the best price obtainable and the proceeds divided between the Town and County based upon the percentage of marketing and promotion tax collected from the Town and from the unincorporated area of the County in the previous calendar year. 18   9. Notices.   9.1 All notices, demands or other documents required or desired to be given, made or sent to the Town or County under this Agreement shall be made in writing and shall be deemed effective upon mailing or personal delivery.   9.2 If mailed, said notices, demand or documents shall be mailed, by regular mail, postage prepaid addressed as follows:   Town of Estes Park Attn: Town Administrator Post Office Box 1200 Estes Park, CO 80517   Board of County Commissioners of Larimer County Attn: Chair Post Office Box 1190 Fort Collins, CO 80522   10. Amendment. This Agreement may be amended in writing at any time by mutual agreement of the Town and County.   11. Governmental Immunity. The Town and County agree that both Parties are relying on and do not waive, by any provision of this Agreement, the rights, immunities and protections provided by the Colorado Governmental Immunity Act, C.R.S. 24-10-101 et seq., as may be amended from time to time, or otherwise available to the Parties or any of their officers, agents or employees.   12. Current Year Fiscal Obligations. Any financial obligations by either the Town or County or requirements for future appropriations shall constitute only currently budgeted expenditures. Any financial obligations of the Town or County under this Agreement are subject to each Party’s annual right to budget and appropriate the sums necessary to provide the services set forth herein. No provision of this Agreement shall be construed or interpreted as creating a multiple fiscal year, direct or indirect debt or other financial obligation of either or both Parties within the meaning of any constitutional or statutory debt limitation. This Agreement shall not directly or indirectly obligate either party to make any payments beyond those appropriated for each party’s then current fiscal year. No provision of this Agreement shall be construed to pledge or create a lien on any class or source of either Part’s monies, nor shall any provision of this Agreement restrict the future issuance of either Party’s bonds or any obligations payable from any class or source of such Party’s money.   13. Dispute Resolution.   13.1 Either the Town or the County may request mediation of any dispute about or related to the terms and conditions of this Agreement. The request for dispute resolution shall be submitted in writing to the other party. 19     13.2 The Town and County shall mutually agree on a mediator. If they are unable to agree, the Town and County shall each select a mediator. The two mediators shall then select mediator to conduct the dispute resolution.   13.3 The Town and County shall participate in the dispute resolution process in good faith. The dispute resolution process shall be concluded within sixty (60) days of filing of the request for dispute resolution. If the dispute is not resolved by this process, either or both Parties may enforce the terms and conditions of this Agreement as provided in Section 14 of this Agreement.   14. Enforcement. The Town and County intend that this Agreement is binding upon both of them and that either of them shall be permitted to specifically enforce any provision of this Agreement in a court of competent jurisdiction.       TOWN OF ESTES PARK, COLORADO       By:   Attest:       Clerk to the Town Board       BOARD OF COUNTY COMMISSIONERS OF LARIMER COUNTY, COLORADO       By:   Attest:       Clerk to the County Board       Approved as to form:       County Attorney   20 BYLAWS OF THE ESTES PARK LOCAL MARKETING DISTRICT ARTICLE I THE DISTRICT Section 1. Name of District. The name of the District is the "Estes Park Local Marketing District." Section 2. Office of District. The office of the District shall be at such place in the District’s Service Area as the Board may designate from time to time. Section 3. Purpose of the District. The purpose of the District is to provide the services as set forth in Section 29-25-11 (1)(e)(I)(A, B, and C) C.R.S.. Section 4. Board of Directors. The Board of Directors of the District shall have all legislative power of the District. Section 5. Governing Document and Statute. The terms and conditions of the Intergovernmental Agreement effective the 26th day of August, 2008January 1, 2019, by and between the Town of Estes Park, Colorado and the Board of County Commissioners, Larimer County, including any amendment thereto (the “IGA”), and the terms and provisions of Sections 29-25-101 et seq. C.R.S. the “Local Marketing District Act”, including any amendment thereto, shall govern the operation of the District . ARTICLE II OFFICERS AND PERSONNEL Section 1. Officers. The District shall have a Chair, a Vice Chair, a Secretary and a Treasurer, who shall be Directors of the District. The offices of Secretary and Treasurer may be combined by action of the Board. Section 2. Term of Office. Each Officer shall serve for one (1) year commencing with the first meeting in January of each year. The Chair and Vice Chair may serve to two (2) consecutive one year terms. Section 23. Chair. The Chair shall preside at all meetings of the Board. Except as otherwise authorized by resolution of the Board, the Chair shall execute all written instruments and documents of the District. 21 Estes Park Local Marketing District Bylaws – Page 2 Section 34. Vice Chair. The Vice Chair shall perform the duties of the Chair in the absence or incapacity of the Chair. In the case of a vacancy in the office of the Chair, the Vice Chair shall perform such duties until such time as the Board shall select a new Chair from among its members. Section 45. Secretary. The Secretary shall keep the records of the District, shall act as secretary of the meetings of the Board and record all votes, and shall keep a record of the proceedings of the Board in a journal to be kept for such purposes. The Board may appoint a Recording Secretary to assist in the recording of the minutes of the meetings of the Board. Section 56. Treasurer. The Treasurer shall be responsible for all funds of the District and payment of District expenses. The Treasurer shall keep the financial records of the District. The Board may appoint an Assistant Treasurer to perform such duties involving financial affairs of the District as the Board determines. Section 67. Executive Director. The District may employ an Executive Director, who shall serve such term as the Board may establish. The Executive Director shall have general supervision over the administration of the affairs and business of the District and shall be charged with the management of the projects of the District. Section 78. Additional Duties. The officers of the District shall perform such duties and functions as may from time to time be authorized by the Board. Section 89. Election of Officers. The officers of the District shall be elected annually by the Board at the first regular meeting in January and shall assume their duties upon election. Section 910. Vacancies. Should any office become vacant, the Board shall select a successor at the next regular meeting to serve for the unexpired term of said office. Section 1011. Personnel. A. The Board may from time to time authorize the employment of such personnel, consultants or agents, permanent or temporary, as it deems necessary to exercise its powers, duties, and functions. B. The selection, qualifications, duties and compensation of all personnel, consultants or agents shall be determined by the Board. The Board may delegate to the Executive Director the determination of these matters. C. The Board may adopt personnel rules, policies and procedures for all personnel of the District. 22 Estes Park Local Marketing District Bylaws – Page 3 ARTICLE III MEETINGS Section 1. Regular Meetings. Regular meetings shall be held at such time and place adopted by the Board. In the event any day of a regular meeting shall be a legal holiday, said meeting shall be held on the next succeeding day or on the same day of the succeeding week, as determined by the Chair. Section 2. Special Meetings. The Chair may call a special meeting of the Board for the purpose of transacting any business. Three Directors may call a special meeting of the Board by written notice delivered to the Chair and the Secretary stating the purpose, time and place of the special meeting. All Directors shall be notified no less than two days in advance of a special meeting. The notice shall designate the purpose, time and place of the special meeting. Section 3. Quorum. A majority (4) of the Directors shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the Board upon an affirmative vote of the majority of the Directors present. Section 4. Open Meetings. All Board meetings shall be subject to Section 24-6- 401 et seq. C.R.S. Section 5. Agenda. The Agenda shall be set by the Chair. Any Board Member may request additional agenda items at the start of a Board meeting. If any agenda item requested by a Board Member is objected to by any other Board Member, said agenda item shall be included on the Agenda upon approval of a majority of the Directors present at the meeting. ARTICLE IV AMENDMENTS AND SUSPENSION OF BYLAWS Section 1. Amendment to Bylaws. The Bylaws of the District may be amended by the affirmative vote of four (4) Members of the Board at a regular or special meetingTown and County. 23 Estes Park Local Marketing District Bylaws – Page 4 ARTICLE V MISCELLANEOUS Section 1. Committees. The Chairman may appoint members of the Board with other persons to such committees as deemed necessary to perform any functions for the purposes of advising or providing other services to the District. Section 2. Conflict of Interest. Each member of the Board is required to disclose any potential conflicting interest in any transaction of the District pursuant to Section 18-8- 308 C.R.S. The Board Member with a potential conflicting interest in a District transaction may not participate in the consideration of, and the vote on the transaction, may not attempt to influence any of the contracting parties, and may not act directly or indirectly for the Board in the inspection, operation, administration, or performance of any contract related to the transaction. Ownership, in and of itself, by a Board Member of property within the District shall not be considered a potential conflicting interest. Section 3. Conflict of Terms of the IGA. In the event that the terms and conditions of these Bylaws conflict with the IGA, the terms and conditions of the IGA shall control. Adopted this _____ day of _______________, 200920___. Estes Park Local Marketing District By:__________________________ Ken Larson, Chair 24 PUBLIC WORKS Report To: Honorable Mayor Jirsa Board of Trustees Through: Town Administrator Lancaster From: Brian Wells, Transit Program Manager Date: November 13, 2018 RE: Town limits shuttle service information Objective: Provide information relevant to the Town Board’s discussion about discontinuing shuttle service to stops outside of Town limits. Present Situation: Since 2007, the Town of Estes Park has operated the Brown Route outside of Town limits to stops including: Marys Lake Campground, Eagle Cliff Rd & Hwy 66, Dunraven Inn, YMCA of the Rockies @ Hempel Auditorium, Glacier Lodge, Rockmount Cottages, and Mountain Shadows Resort. Ridership information for stops outside Town limits: Passengers boarding at these locations likely took a return trip from a stop inside Town limits back to the locations listed above. Shuttle ridership by route: 25 The Brown Route has finished in the top two number of passengers per route each year since 2013. Due to budget cuts, all routes dropped the 9-10 p.m. hour of service in 2017-2018. The Brown Route 8-9 a.m. trip was discontinued in 2018 for financial reasons. The high level of ridership on Brown was important to sponsors in 2018 when we expanded the sponsor program. Brown Route sponsors outside Town limits in 2018 included: Swiftcurrent Lodge $ 75 River Spruce Cabins $200 Sponsors within Town limits that utilized sponsor opportunities on the Brown Route in 2018 (because of ridership and exposure chances) included: Marys Lake Lodge $1,000 Hunters Chop House $1,000 Estes Park Health (hospital) $ 500 Proposal: The Town Board is deciding whether or not to eliminate shuttle stops outside of Town limits beginning in 2019, choosing to serve stops inside Town limits where sales tax is collected. Advantages:  Shuttle service will serve areas supported by sales tax collection.  Three additional shuttle stops on the Brown Route, inside Town limits, will better serve residents and guests locally.  The Brown Route will be altered to operate on a 30-minute trip schedule (it has been a 60-minute trip since it began in 2007), matching the other four shuttle routes. Disadvantages:  Discontinuing stops outside Town limits could result in higher use of private vehicles within Town limits, particularly downtown, resulting in higher emission levels, additional traffic congestion, and increased competition for limited parking spaces. Disadvantages continued:  Transportation sensitive passengers may not have or might experience limited access to employment and businesses within Town limits; especially J1 student workers.  Providing additional structured parking garage spaces for riders displaced from the shuttle costs approximately $30,000 per space. Action Recommended: The Transportation Advisory Board provided a letter (attached) summarizing their position on the proposed shuttle route change. 26 Several comments collected from guests, residents, and local businesses were collected and are attached in Appendix A. Staff will make any changes in accordance with the Board’s direction. Should the Board approve the proposed change, staff will make changes to shuttle information immediately in order to help guests and residents make appropriate plans for 2019. Finance/Resource Impact: The operational cost of the two Brown Route options for 2019 is expected to be: Service inside Town limits: Service outside Town limits: Expense Amount Expense Amount Contracted Service $ 62,492.16 Contracted Service $ 62,492.16 Vehicle Lease (est.) $ 6,182.00 Vehicle Lease (est.) $ 8,500.00 Limiting service to stops only within the town limits would save approximately $2,318 in budget item number 101-5600-456-22-60 while decreasing the headway between successive shuttles from 60 minutes to 30 minutes on the Brown Route. Level of Public Interest  Transportation in Estes Park continues to be of high value.  Through the 2018 shuttle season, the Town has served 793,492 riders.  Data from the 2018 Citizen’s Survey: Please indicate if you think the current service level should be increased, remain at current level or be decreased: Increase Service Keep Current Service Level Decrease Service Total Free, summer shuttle service 32% N=185 63% N=367 6% N=33 100% N=584 Free, year-round shuttle services (potential future service) 50% N=270 36% N=198 14% N=77 100% N=545 Attachments:  Appendix A: Comments regarding the change in services for stops outside Town limits  Appendix B: Additional shuttle information  Letter from the Transportation Advisory Board 27 1 Appendix A: Community Feedback Regarding Shuttle Service Outside Town Limits The following information was collected via e-mail and through public comments at the Shuttle Committee and Transportation Advisory Board meetings: “The Brown route stops shown in the letter of 8/21 reflect a significant # of Estes Park guests and employees which would be effected by discontinuance. I do not believe it will impact our particular business traffic in a tangible way. However, the impact to the town in the following areas should be considered: a) additional traffic stress. Estes Park has had an ongoing struggle with traffic stress due to personal vehicles. A decrease of the Brown route, which serves a significant # of people including the"Y" which is a city unto itself, will add to this difficulty affecting tourist satisfaction and return rates. b) potential decreased sales tax revenue for the town. Our personal experience with shuttle use is guests which have cars use the shuttle when a couple of people wish to go into town to shop when others go elsewhere. Without this service available, individual "shoppers" may stay home as their family day trips elsewhere. c) increased difficulty in town ability to get qualified employees for summer. Every j1 questionnaire we see asks about shuttle or bus service. These people do not have transportation. This is an important part of their decision making in whether they will visit, work in and spend $$ in Estes Park or in California or New York. US students considering a summer work stay also frequently do not have reliable transport. A side note on this - our experience is that summer workers, especially those relying on Estes Park transport spend the vast majority of their paychecks right back into the Estes Park economy. Finally, I would make a suggestion. The overall economy and way of life is enhanced for Estes Park with the shuttle service. However, those using it receive additional benefits. Consideration should be given to a SMALL use fee each time of use by any individual, perhaps $0.50 or $1.00. This would help with funding constraints and as long as the fee was very reasonable, shouldn't affect ridership or burden those using it much.” Jim Addison, Valhalla Resort (September 9, 2018) 28 2 “We’re obviously disappointed that the brown route may be discontinued. While the service is most definitely a benefit to our guests and staff, I strongly believe that the influx of tourists from the Y and the staff that travel to second jobs is of benefit to the town as well. Guests regularly use the shuttle to avoid downtown parking issues. Group members (that have arrived by tour bus) use the shuttle to access town. Many seasonal staff use the shuttle as they do not have cars. Some seasonal staff use the shuttle to commute to their second job in town.” Dave DeLuca, Estes Park Center Director, YMCA of the Rockies (August 24, 2018) “The September 5, 2018 Trail Gazette has an article that the town trustees have suggested discontinuing certain stops on the Brown shuttle route, because those stops are not in town limits. You are quoted as saying that "the feeling was that the stops outside of Town do not collect sales tax revenue to support the service." However, people who use that shuttle to come to town, probably buy things in town, thus providing sales tax revenue. Many people who work or visit the YMCA do so without a car. The town shuttle gives them a way to get to/from town. It is a good public service. When congestion of town streets in the summer is such a concern, why would eliminating shuttle service be thought to be a good idea?” Dorothy Dewitz, Estes Park Resident (September 5, 2018) “Thank you for providing information about the Town Board considering suspending shuttle service along Hwy. 66. I appreciate the opportunity to express my thoughts on the matter. First, I would be interested to know what the numbers are for ridership of the shuttle system in our area. Being outside the town limits, even though we do not directly pay town sales tax, all of our guests who use the shuttle system do spend money that generates town sales tax. I thought the Shuttle system was created to alleviate parking and road congestion issues in order to give all visitors the best possible experience in and around Estes Park. Assuming that the ridership numbers are decent, I believe it would be prudent to keep at least two of the stops that are potentially being cut. I would assume that the YMCA stop has a great number of riders considering the sheer number of guests that the YMCA can accommodate. One additional stop mid-way, such as #8 Eagle Cliff / Hwy 66 would allow guests from Glacier Lodge, Valhalla, Machin’s, Rockmount Cottages, Paradise on the River, & others in the area to have one centrally located stop. I think it would be foolish to cut ALL of the stops that are listed. Surely, the town would still like the sales tax generated by our guests shopping, dining, and enjoying entertainment within town limits.” Holly Reetz, Rockmount Cottages (September 4, 2018) 29 3 “As owners of Paradise on the River, would hope the Town Board would consider continuing with the shuttle service. We believe discontinuing the service would be shortsighted by the Town. Thousands of guests over the busy season will now be driving into town, instead of using the shuttle, making it even more congested and less friendly to the environment. Those businesses in Town would be losing business to those that decide to not even go into town because they either do not have a vehicle or because of the congestion. I know some employees even use the shuttle to come and depart from their places of employment. Those of us with resorts outside of the Town limit do pay the 2% tax to the marketing district which benefits Estes Park immensely. Also, the special district was created and successfully passed by the electorate to take the marketing burden off the Town. I believe there is a couple of million dollars that no longer falls upon the Town budget. The Town should gladly support those businesses that help pay for the creation of business within the Town with their customers and guests.” Robin Eldridge, Diana Eldridge, Paradise on the River (August 26, 2018) “I’m a frequent visitor to Estes Park and use the free shuttles exclusively. I am elderly. I fly into Denver and take the shuttle from the airport. There is no Uber/Lyft and no reliable taxi. I have heard you are planning to stop or shrink the local shuttle service. Do not do that! Without the local shuttles, I can no longer visit Estes Park. I pay rent at resorts, buy groceries, souvenirs, eat out, take tours. I spend about $3,000 here in 10 days and don’t plug up the downtown traffic. There are many more retired folks like me, increasing as the population ages. More like me would come here if transportation not a major barrier. We are a niche that has time and money. We don’t want T-shirts and taffy. Cater to us. Thanks for listening. The Brown route is my route. I stay at Paradise, Glacier, Marys Lake resorts and the Y. Please, I beg you, don’t mess it up. These places are ideal for we older folks who like peaceful beautiful landscapes and uncrowded comfy accommodation with thoughtful kind hosts. No loud nightlife, no T-shirts or taffy, and we can’t hike anymore.” Beverly Apel, Iowa (August 24, 2018) “My name is Rachel Ames and I am an Estes Park area resident. I recently heard that the city is considering eliminating some stops of the Estes Park Shuttle along Spur 66 and Mary’s Lake Rd. I live in the High Drive neighborhood and while I don’t personally take the shuttles into Estes, I have had relatives who have stayed at the YMCA and they loved the shuttle into town. Parking is always an issue and they appreciated being able to hop on the shuttle to have dinner and go shopping. I really hope you and the other town leaders recognize the incredible value that the shuttles provide to visitors who might not want to drive into town or those who have large trucks/RV’s and who can’t easily park downtown. Offering alternative transportation is always the right thing to do. Thanks for listening.” Rachel Ames, Estes Park Resident (August 24, 2018) 30 4 “I recently heard the town of Estes Park is considering eliminating Shuttle stops along Hwy 66 and Mary’s Lake Road. I think this plan is very short sighted. I cannot imagine any town not wanting to Shuttle in visitors to its downtown area, especially one as heavily reliant on tourism such as Estes Park. The Shuttle helps reduce both traffic and parking issues as well as providing a great community service and welcome to visitors. The Shuttle should be viewed as a benefit for Estes Park businesses, the town of Estes Park, as well as a friendly, efficient, environmentally conscious means of transportation for the greater Estes community. Thank you and I hope you will consider the broader consequences of this decision.” Andy Ames, Estes Park Resident (August 22, 2018) “I’m writing to express my concern about a proposed change reportedly being considered by the Town to remove shuttle stops outside the Town limits. I strongly believe such a change would be detrimental to Estes as a whole. When people visit Estes Park, they certainly don’t stay within (or even think about) the Town limits. I strongly urge the Town not to remove these shuttle stops.” Charlie Wood, Estes Park Resident (August 22, 2018) “Thank you for making me aware the town board is considering halting the service for stops located outside of the town limits. Just to clarify my guests that use the shuttle appreciate and value the service. My employees also use the service. I wish ridership was higher and I understand and appreciate the board looking for cost savings. I would think the more visitors that we can encourage to use the shuttle service, will only reduce traffic congestion? I would expand the service not reduce it? Even if you had one shuttle run year-round, or at least matching the [Rocky Mountain National] Park bus schedule. Lastly, I would consider paying a service charge for providing the stop to help offset the expense. Thank you again for bringing the issue to my attention, and thank you for providing the service to my guests. They spend a lot of money inside the city limits; gas, food, entertainment, shopping and other services. It's not like they have many other options, they have to go to town!” Dave Ranglos, Glacier Lodge (August 22, 2018) Excerpt from the August 9, 2018 Shuttle Committee Meeting Julie Pieper (Owner, Mama Rose’s & Poppies Pizza and Grill) added that many J1- Students reside at stops along the Brown Route, especially the YMCA. Adequate 31 5 transportation is one question that employers have to address when working with the student employees. Multiple J1-Students work more than one job and the shuttles are critical to helping fill employment opportunities and provide a quality guest experience. Businesses are already having a difficult time filling open positions and retaining staff. For 12 years, guests have relied on a wider access to the Estes valley via the shuttles and the Brown Route. Excerpts from the August 15, 2018 Shuttle Committee Meeting Minutes “The Center Director for the YMCA of the Rockies, Dave Deluca was a member of the public and stated he understands budget restrictions but would like to further discuss the situation with the Town. Deluca can provide transportation for the YMCA staff utilizing their own fleet but needs to budget accordingly.” “Executive Director of the Good Samaritan Estes Park Village, Julie Lee, expressed concern that the change in shuttle service will exacerbate traffic congestion situation by requiring more driving downtown.” 32 1 Appendix B: Additional Information Regarding Shuttle Service Outside Town Limits 33 Memo To: Honorable Mayor Jirsa Board of Trustees Town Administrator Lancaster From: Belle Morris, Chair, Transportation Advisory Board Date: October 29, 2018 RE: 2019 Estes Park Transit Service Change The Transportation Advisory Board (TAB) continues to advocate for a year- round, well-developed transit system that provides reliable and effective services for local residents as well as visitors to our community. At our recent special meeting session on October 23, 2018, TAB voted to recommend the temporary discontinuation of service for “out of Town limits” shuttle stops for the year 2019. If this recommendation is accepted, TAB strongly suggests that the Town immediately begin working with businesses located in the “out of Town limits” areas to negotiate ways to improve future service by reducing transit time for riders (e.g., reducing route timing from 60 to 30 minutes), offering additional shuttle stops and through enhanced partnerships, both economic and operational. There were two members who did not support discontinuing service, citing that there was not enough information regarding the impact of ending these destination stops. The other TAB members respected this viewpoint. TAB recognizes that the current Estes Park Transit system is in need of significant improvements and development to reach what we think should be provided. As such, TAB requests that the Town begin actively seeking out ways to become a year-round transit network that seeks to serve the access needs of both local commuters and visitors to our Downtown. It is TAB’s understanding that once a year round service is established (weekends and holidays during off-season), Estes Park may apply for transit development grants. To support this vision of year-round service, TAB respectfully requests that the Town consider directing funding towards development of a strategic and comprehensive transportation master plan to complement the recently-adopted Downtown Parking Management Plan and Downtown Plan. PUBLIC WORKS 34 TAB has researched other mountain communities that provide year-round services such as Winter Park, Colorado and Jackson Hole, Wyoming. Both communities provide an off-season program and a peak-season program to all for a year round service; references to both programs are linked below: • Winter Park: https://www.playwinterpark.com/lif • Jackson Hole, WY: https://www.jacksonholenet.com/transportation/public_transportation.php We look forward to partnering with the Town as Estes Park begins to work toward offering similar programs. 35       36                     November 27, 2018  Update on Parking Utilization & Number of Reserved Spaces  Complete Streets Policy  Update on Film Center Plans by John Cullen December 11, 2018  Quarterly Update on Downtown Estes Loop Project  Final Review of Strategic Plan  Introduction to Water Rates Study Process January 8, 2019  Benefits of Roundabouts  Discussion of “Open Space” Designations on previous zoning maps January 22, 2019  Removing 500 Foot Limit for Liquor Licenses  Social Media Archiving & as a Public Record Under State Statute  Stormwater Management Program & Utility: Results from Public Outreach February 12, 2019  Stanley Park Master Plan  2019 Street Improvement Plan  EPIC Update February 26, 2019  E-Bike Policy Items Approved – Unscheduled:  Revisit Policy 402 and 901 Regarding Fee Waiver Requests  Estes Park Housing Authority Project on Highway 7 – Part II  Discussion with Town Prosecutor Items for Town Board Consideration:  Building Deferred Maintenance Future Town Board Study Session Agenda Items November 13, 2018       38