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HomeMy WebLinkAboutPACKET Town Board Study Session 2012-08-14* Revised NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. STUDY SESSION TOWN BOARD Tuesday,August 14, 2012 4:00 p.m. Rooms 202/203 170 MacGregor Ave. AGENDA 4:00 p.m.Stall Barn Discussion. 5:00 p.m.Policy Discussion Utility Transfer Community Grant Catastrophic Loss Fund Future Agenda Items. 6:30 p.m.Meeting Adjourn –Prepare for Board Meeting. FINANCE Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Steve McFarland – Finance Officer Date: August 14, 2012 RE: Utility Transfer/Community Grant/Catastrophic Loss Fund Policies Background: The following information serves as follow-up to several discussion topics from the June 29, 2012 Town Board Study Session. Those items include the Utility Funds transfer of monies to the General Fund, the Community Grants in the General Fund, and the Catastrophic Loss Fund monies that reside in the General Fund. Utility Transfers Deputy Town Administrator Richardson previously provided a report regarding Utility Fund transfers. As a result of the information provided in that report, a suggested transfer policy was created (see attachment). The report outlines the major financial transactions that occur between the Utilities and General Fund, including allocation of staff, payments in lieu of taxes, franchise fees, building rentals and transfers. Information recently discovered in Town archives, from the time the Utilities were created, refers to a transfer from the Utilities to the General Fund, which it was hoped would assist the Town in keeping future property tax increases to a minimum. The present rates of transfer are 8.5% for Electric, and 4.0% for Water, and are based on gross revenue provided by residential and urban sales. For 2012, the transfers are an estimated $1,112,829 for Electric and $120,493 for Water. In section 7.3 of the draft transfer policy, reference is made to a proposed transfer level, not to exceed 10% of net revenue. “Net revenue” typically refers to an organization’s revenues, net of discounts and returns. This is not the same as “net income”, which is revenue net of all expenses. This is an important distinction because in the “net revenue” scenario, the transfer occurs before any expenses are calculated, whereas in the “net income” scenario, the transfer occurs after all other financial obligations would be met. Reference is made in Section 7.3 to all expenses being met prior to a transfer being made. To be more accurate, the transfers are made concurrently with the meeting of other obligations, in accordance with the approved budget. When the budget forecasts negative net income for the year (2012 forecasts a $386,901 loss), the assumption is that fund balance will be tapped in order to meet obligations, so long as debt and operating ratios are not jeopardized. Staff suggests determinations need to be reached in the following areas: 1. Is there sufficient industry and historical evidence (as evidenced primarily from Deputy Town Administrator Richardson’s report) to justify transfers from the Utility Funds to the General Fund? 2. If so, are the transfer rates from the Utilities to the General Fund of 8.5% (Electric) and 4.0% (Water), based on net revenue before expenses, reasonable? Community Grants Attached is a synopsis of the recent history (2005, 2007-12) of the Community Grants section of the General Fund budget. The ratio of expenditures-to-sales tax is a concept introduced informally by Town Administrator Repola and Finance Officer McFarland ca. 2006-07. The attempt was to tether community grants expenditures to approximately 5% of sales tax. The sentiment at the time was to address/create a ceiling for grants. No thought was given to a perspective floor (minimum %). As can be seen (middle section of document), this “rule of thumb” has been fairly successful, with the ratio hovering between 4.5%-5.3% over the past 6 years. This ratio has been heavily influenced by two line items: the Housing Authority (EPHA), and the Local Marketing District. EPHA funding has significantly reduced (per the EPHA) in the past 6 years, decreasing from $283,045 in 2007 to $128,310 in 2012. Some of the savings have been redirected to assisting the Local Marketing District (LMD) in 2011-12. If LMD assistance ceases in 2013, then the grant-sales tax ratio will probably be more like 3.5- 3.7%. This is an opportunity to formalize a guideline that community service grants not exceed a certain percentage of sales tax. Staff is not requesting such a defined guideline, but did want to communicate the history of the community grants for the Board’s consideration. Catastrophic Loss Fund Attached is a brief history of the Catastrophic Loss Fund (CLF). The CLF was created as the Self-Insurance Fund in 1977. Funding (from the General and Utility Funds) ceased in 1988 when the fund reached a $1,000,000 balance, and the Fund itself was discontinued in 2010, having been transferred to the General Fund fund balance. Administrative Services Director Williamson is including a report that discusses current insurance coverages. Staff is seeking direction in the following areas: 1. Can any or all of the $1,277,658 transferred from CLF to General Fund in 2010 be used for future operations/capital needs (shall the amount be considered part of usable fund balance)? 2. CLF amassed funds resulting from transfers from the General, L&P and Water Funds in approximately a 40%-40%-20% (respectively) ratio. When determining appropriate disposal/allocation of the $1,277,658, should any monies be returned to the Utility accounts? Budget: Staff will determine budget ramifications pending direction of the Town Board on the above items. Staff Recommendation: See above. Sample Motion: N/A 1 TOWN OF ESTES PARK UTILITY FUND TRANSFERS POLICY Purpose The purpose of this policy is to provide Interfund transfer controls from the Town’s Enterprise Funds to the Town’s General Fund specifying all fees and charges associated with the Water Utility and Light and Power Utility revenues committed to the Town’s General Fund each year. Policy The policy established will insure transfers to the Town’s General Fund are legally acceptable methods that maintain service interests of the utility customers and the overall operations of the Town utilities while supporting the standard of providing reliable high quality utility services. Utility Transfer payments are a common standard practice for municipally owned utilities these payments typically come in the form of payments in lieu of taxes (property and sales) a return on investment and or other fees charged to the utilities by the municipality. It is these transfers that allow the Town of Estes Park to provide high level quality services to its residents otherwise funded through increased taxes. 7.1 Budget Definitions of Transfers, Fees and Service Expenses Since their inception the utility departments have paid fees or charges to the Town’s General Fund for land use, building rentals, administrative services, franchise fees, payments in lieu of taxes and transfers. Historically, information does not exist that specifies why these fees, charges and transfers were established only that they have occurred for more than 70 years, water first and electric second. Current General Fund transfers and fees are comprised of the following categories: Administrative Fees The Town owned utility departments receive services from specific general fund departments. The utility departments pay for the services provided by those general fund departments, those services are; Town Administration (Town Administrator, Deputy Town Administrator, P.I.O. and Executive Assistant), Administrative Services (HR Manager and Payroll/HR Technician, Town Clerk, and Deputy Town Clerk), Finance Department (Finance Officer, Assistant Finance Officer, Accountant I, Accounts payable/Utility Billing Specialist and Administrative Clerk) and I.T. Services (I.T. Manager, I.T. Specialist and GIS Specialist). Those calculations specific to the general fund payments can be located within the Town’s annual budget within each of the utility department budgets. Authorization to impose fees is by Town ordinance it is located within the Town of Estes Park Municipal code. For Light and Power see Estes Park Municipal Code 13.06.050 Enterprise obligations and Town obligations. For Water see Estes Park Municipal Code 13.22.050 Enterprise obligations ad Town obligations. 2 Franchise Fees (3% Urban) The amount charged by the Town of Estes Park to the Enterprise Utility Departments for operating and providing exclusive utility services within the established area of the Town limits and allowing the utility access to public land for the purpose of operating said utility business. General Fund Transfers A transfer of revenue funds serving as a return on investment from each utility department to the Town’s general fund occurring each budget year and approved by the Town Board. These funds are not earmarked for specific use but used to support the general fund and special revenue fund departments. Payment in Lieu of Taxes (2.5% Urban) A PILOT is a payment that a Public Utility, not subject to municipal taxation, makes to their municipal government in compensation for lost general fund tax revenue that otherwise would be collected if the utility was privately owned. Rental Fees Because the Town of Estes Park owns the buildings and the land the utility departments occupy and operate from, a rental fee is charged to each utility department for those uses. 7.2 Utility Fees The Town Board shall fix, establish, maintain, and provide for the collection of rates, fees, and charges for water and electric service and other utility services furnished by the Town. All rates, fees, and charges shall be sufficient, in the Town Board’s judgment, to provide reliable service to the customers, pay all bonded indebtedness, pay legally required refunds, cover the cost of operation, maintenance, additions, extensions, betterments, and improvements, provide a reasonable return on the Town’s investment in utility properties and capital investments, and reimburse the general fund for administrative services and overhead provided and incurred by the Town on behalf of each utility, together with a sum which, in the Town Board’s judgment, is equivalent to that which would have been obtained from a franchise fee or utility occupation tax on the utility. The provisions of this section shall be subject at all times to the performance by the Town of Estes Park for all covenants and agreements made by it in connection with the issuance, sale or delivery of any bonds of the Town, payable out of the revenues derived from the operation of its water and electric utilities, whether such revenue bonds be heretofore or hereafter issued. 3 The fees charged to each utility department are presented to the Town Board for approval during the annual budget process, each year they include the following and are located within the Town’s budget: 7.2.1 Administrative Fees are for services rendered to each utility department by the Town’s Finance Department, Administrative Services Department (Town Clerk’s Office/Human Resources Division) and Town Administration (Town Administrator, Assistant Town Administrator, Public Information Officer and Executive Secretary). The fees are calculated based on a percentage of the wages for services rendered by each of the department positions identified. The percentages are broken down as follows: Admin Fee Percentages L&P Percentage Water Percentage Town Administrator 48% 14% Assistant Town Administrator 48% 14% Town Clerk 48% 14% Deputy Town Clerk 48% 14% Executive Secretary 48% 14% PIO 48% 14% Finance Officer 26% 14% Assistant Finance Officer 26% 14% Accountant I 26% 14% Accts. Payable/Utility Billing 94% 46% Administrative Clerk II 124% 61% 7.2.2 Franchise Fees are fees the Town of Estes Park would otherwise charge to privately owned/investor owned utilities for operating within the Town of Estes Park. This fee practice is consistent with fee assessments charged to privately owned/investor owned utility companies. 7.2.3 Rental Fees are charged to each utility for use of the Town owned land and buildings currently used by each utility for conducting their operations. 7.2.4 Payment in Lieu of Taxes represents lost revenue the Town of Estes Park would otherwise receive from a tax charged to a privately owned/investor owned utility. Currently the Town of Estes Park does charge a 3% fee to those utility businesses operating within the Town. 7.3 General Fund Transfers 7.3.1 Return on Investment As the owner of the water and electric utilities the Town of Estes Park realizes a return on investment in the form of a transfer to the Town of Estes Park’s general fund. This transfer occurs once obligations for rates, fees, charges, bonded indebtedness, operation expenses, maintenance expenses, refunds, betterments and improvements are met. Each budget year the Town Board shall in their judgment approve a reasonable return on investment from the net 4 revenue of each enterprise fund in an amount not to exceed 10%. Such transfers are used to offset General Fund operational expenses through the annual budget appropriation process. 5 (Attachment) Title 13 Public Utilities I. LIGHT AND POWER Chapter 13.04 Light and Power Administration 13.04.010 Creation of Light and Power Department 13.04.020 Director; powers Chapter 13.06 Light and Power Enterprise 13.06.010 Establishment of the Enterprise 13.06.020 Enterprise excluded from the provisions of TABOR 13.06.030 Governing body 13.06.040 Powers of the Enterprise 13.06.050 Enterprise obligations and Town obligations 13.06.060 Transactions in the name of the Town Chapter 13.08 Light and Power Rules and Regulations 13.08.010 General 13.08.030 Permanent and temporary service 13.08.040 Discontinuance of service 13.08.050 Service deposit 13.08.060 Metering and billing 13.08.070 Town's facilities 13.08.080 Customer's use and facilities Chapter 13.10 Light and Power Discontinuance Regulations 13.10.010 Adoption of Public Utilities Commission discontinuance regulations Chapter 13.16 Light and Power Extension Policies 13.16.050 Line extensions II. WATER Chapter 13.20 Water Administration 13.20.010 Creation of Water Department Chapter 13.22 Water Activity Enterprise 13.22.010 Establishment of the Enterprise 13.22.020 Enterprise excluded from the provisions of TABOR 13.22.030 Governing body 13.22.040 Powers of the Enterprise 13.22.050 Enterprise obligations and Town obligations 13.22.060 Transactions in the name of the Town Chapter 13.24 Water Rules and Regulations 13.24.010 Inspections 13.24.050 Separate connections required 13.24.080 Water service and usage 13.24.120 Extraterritorial water service 13.24.150 Regulations; part of contract 13.24.230 Contract line extension policy 13-11 6 Chapter 13.26 Cross-Connections 13.26.010 General policy 13.26.020 Definitions 13.26.030 Requirements 13.26.040 Requirements of consumer Chapter 13.28 Metered Service 13.28.050 Customer liable for meter damage 13.28.080 Interfering with or bypassing meters unlawful 13.28.090 Charges when meter fails to register Chapter 13.32 Water Rates and Charges 13.32.010 Water rate schedule 13.32.040 Discontinuance, termination and abandonment of service 13.32.080 Unpaid water and connection charges a lien Chapter 13.38 Bulk Rate Water Customers 13.38.010 Bulk rate water users 13.38.110 Distribution system 13-11 7 I. LIGHT AND POWER Chapter 13.04 Light and Power Administration 13.04.010 Creation of Light and Power Department. There is created and established a Light and Power Department of the Town, which shall have control of the operation and maintenance of the electric plant and works for the manufacture, generation, transmission and distribution of electricity, and also the distribution and sale of electrical energy whether the same be generated by the Town or purchased by the Town for distribution and resale to others. (Prior code §7.1) 13.04.020 Director; powers. The Light and Power Director shall have the immediate control and management of all things pertaining to the Light and Power Department, and shall perform all acts that may be necessary for the prudent, efficient and economical management and protection of the light and power works, subject to the approval and confirmation of the Board of Trustees. (Prior code §7.2; Ord. 6-90 §15, 1990) Chapter 13.06 Light and Power Enterprise 13.06.010 Establishment of the Enterprise. The Town hereby formally establishes the Enterprise as an agency of the Town and designates it as the "Town of Estes Park, Light and Power Enterprise." It shall be the purpose of the Enterprise to pursue or continue all of the Town's light and power activities, including the purchase of electrical energy and the distribution of electrical energy to the Town's customers. In connection with the purchase and distribution of electrical energy, the Enterprise shall be responsible for, among other things, the construction, operation, repair and replacement of electric power distribution facilities, and administration using revenues and income generated by and earned or acquired in connection with its light and power activities and held and managed in the Town's light and power enterprise fund. As between the Town and the Enterprise, all light and power activities will be deemed done and furnished by the Enterprise. (Ord. 7-99 §1, 1999) 13.06.020 Enterprise excluded from the provisions of TABOR. Pursuant to and in accordance with Article X, Section 20 of the Colorado Constitution ("TABOR"), the Enterprise shall be excluded from the provisions of TABOR and shall be entitled to impose rates, fees, tolls and charges; collect and spend revenues; issue its own revenue bonds; and construct, operate and maintain facilities and provide light and power services; all without reference or regard to the limitations contained in TABOR. (Ord. 7-99 §2, 1999) 13-11 8 13.06.030 Governing body. The members of the Board of Trustees shall serve as the governing body of the Enterprise and shall be known collectively as the Board of Directors of the Enterprise (the "Enterprise Board"). Acting as the Enterprise Board, the Board of Trustees may exercise the Town's legal authority relating to light and power activities. The Enterprise Board hereby is directed to take all actions necessary to cause the Enterprise to comply with all applicable laws. (Ord. 7-99 §3, 1999) 13.06.040 Powers of the Enterprise. The Enterprise shall have all powers and authority granted to municipalities in connection with light and power activities by the provisions of Title 31, Article 15, C.R.S.; the power to contract with any person or entity, including other districts and other enterprises qualified under TABOR; and the power to issue and reissue revenue bonds through its governing body. (Ord. 7-99 §4, 1999) 13.06.050 Enterprise obligations and Town obligations. In consideration of the Enterprise's commitment to provide light and power services for which the Town actually is obligated and to collect and spend revenues from rates, fees, tolls and charges imposed by the Town, the Town hereby agrees to continue to provide administrative services for the Enterprise and its activities, to continue to hold title to and own all of the assets currently owned by the Town and necessary to the operation of the Enterprise (including but not limited to the electrical energy distribution system) and to impose all rates, fees, tolls and charges for light and power activities. The relationship between the Town and the Enterprise with respect to the administration of the Enterprise, the operation of the light and power activities and the duties and responsibilities of each party shall be as herein set forth and as may be delineated and clarified from time to time in a joint resolution of the Board of Trustees and the Enterprise Board which may be adopted at any time when the Enterprise Ordinance codified herein is in full force and effect ("Joint Resolution"). (Ord. 7-99 §5, 1999) 13.06.060 Transactions in the name of the Town. Any and all transactions of the Enterprise may be done in the name of the Town or in the name of the Enterprise and neither this Section nor any transaction entered into pursuant to it shall alter or abrogate the relationship of the Town and the Enterprise as established in Section 13.04.050 and as may be further clarified from time to time in a Joint Resolution. (Ord. 7-99 §6, 1999) Chapter 13.08 Light and Power Rules and Regulations 13.08.010 General. (a) These rules and regulations set forth terms and conditions under which electric service is supplied by the Light and Power Department of the Town, called the Department, and are intended to govern all classes of service supplied by the Department to customers, both within and outside the Town limits. 13-11 9 (b) In addition to the provisions and conditions herein, service supplied under the electric rate schedules is subject to the service regulations specified in the rates and to such amendments or additions as may be made by the Town. (c) Electric service furnished by the Department is subject also to the requirements set forth in Town ordinances relating to electrical installations, inspections, licensing, permits and regulations, and in the Rules and Regulations of the Electrical Inspector under the National Electrical Code and state revisions. (d) Any waiver at any time of the Department's requirements under these rules and regulations will not be deemed as a waiver as to any violation or other matter subsequently occurring. (Prior code §7.3-1; Ord. 366 §1(part), 1969; Ord. 15-97, 1997) 13.08.030 Permanent and temporary service. (a) Permanent: Unless specific arrangements are made to the contrary, electric service will be considered rendered on a continuous, permanent basis subject to termination as provided later in these rules and regulations. (b) Temporary service: Temporary service is considered as that service required by such consumers as circuses, construction contractors, carnivals, tent shows and other similar enterprises. Prior to the start of any construction required to provide temporary service, the applicant will pay the Department an amount equal to the Department's estimate of the total cost of constructing and removing all facilities necessary to supply the desired service less the salvage value of the materials used. The amount thus paid will not be refundable nor can it be applied to service bills. The cost of electric service will be in accordance with the provisions of the application for such service and shall be as stated in the applicable schedules of rates. (Prior code §7.3-3; Ord. 366 §1(part), 1969) 13.08.040 Discontinuance of service. (a) Discontinuance by customer: Any customer desiring to discontinue electric service should give the Department at least three (3) days' notice prior to the time disconnection is desired to permit meter reading, disconnection and final billing for service rendered. The customer shall be liable in any event for electric service rendered until the final meter reading is obtained. Further, such notice by the customer does not relieve him or her in any way from any minimums or payments guaranteed under his or her service contract. (b) Discontinuance by Town: The Department may discontinue service under any of the following conditions, subject, however, to the requirements and procedures set forth and adopted in subparagraph (4) of this Subsection and Chapter 13.10 of this Code: (1) If the customer's wiring or equipment is considered unsafe, service may be discontinued after due notice and will not be reconnected until the unsafe condition has been corrected. Notwithstanding the foregoing, the Department may discontinue service without notice to the customer if a hazardous condition is discovered on a customer's premises, or if the unsafe condition or manner of utilizing service could be considered dangerous to the life, health or safety of any person, thus making an immediate discontinuance of service to the premises imperative. 13-11 10 (2) The customer shall not connect any energy-consuming appliance or device on the Department's side of a meter nor tamper or otherwise interfere with the proper operation or registration of Department's meter or permit others to perform such connection, interference or tampering. For violation of this regulation, service shall be disconnected without notice and will not be reconnected until the customer has paid an estimated service bill for the period during which such violation existed and shall have installed standard service entrance wiring in accordance with the prevailing requirements of Chapter 14.20. (3) Service may be discontinued for nonpayment of past due service accounts, for nonpayment of any required deposit, or if service to the customer's equipment is detrimental, in the opinion of the Department, to service to other customers served by the Department. If a customer is receiving service at more than one (1) location, service at any or all locations may be discontinued for nonpayment of any past due service account if, after transfer of the past due account pursuant to Section 13.08.050, the customer fails to pay an account in full within the period prescribed in Section 13.08.060. (4) Any discontinuance of service pursuant to this Subsection shall be in accordance with and pursuant to the discontinuance regulations set forth in Chapter 13.10 of this Code. (Prior code §7.3-4; Ord. 366 §1(part), 1969; Ord. 18-80 §1, 1980; Ord. 13-83 §1, 1983; Ord. 15-97, 1997) 13.08.050 Service deposit. (a) The Department may, at any time, require that the customer maintain a deposit with the Department of a sum not exceeding an estimated ninety (90) days' bill or a satisfactory guarantee of the payment to be made for service for a like period. Such deposits will not be considered as advance payment for service bills and will be applied as credits to customers' accounts only after service has been discontinued. The deposit may be in addition to any advance, contribution or guarantee in connection with construction of any lines or facilities as provided for in the Department's line extension policies. In the event any person is in arrears to the Department for electric service, satisfactory arrangements must be made for paying for the old accounts in full before any application for new service will be approved. (b) The Department may return deposits at any time and will return such deposits upon discontinuance of the service after withholding therefrom payment for unpaid charges or bills for service. Deposits will be refunded only after the Department has determined that sufficient evidence exists that the customer is entitled to the return of the deposit. (c) The interest rate applied to deposits, the calculation of interest and the distribution of interest on deposits shall be made in accordance with the applicable rule governing customer deposits as promulgated by the Public Utilities Commission of the State. (d) Customers who have previously received service from the Department shall be required to make a new or additional deposit only if previous payment records include recent or substantial delinquencies. (Prior code §7.3-5; Ord. 366 §1(part), 1969; Ord. 383 §1(part); Ord. 6-70 §1, 1970; Ord. 27-79 §1, 1979; Ord. 18-80 §2, 1980; Ord. 13-83 §2, 1983; Ord. 15-97, 1997) 13-11 11 13.08.060 Metering and billing. (a) Metering of service. The customer will provide at his or her expense, and in connection with his or her wiring, suitable mounting space or enclosure for the installation of metering equipment in accordance with Town ordinances relating to electrical installations, inspections, licensing, permits and regulations. The Department will own and maintain metering equipment suitable and necessary for measuring the electric energy supplied. Service supplied under each electric rate schedule shall be separately measured and billed for, except that any bills transferred to the customer's account pursuant to Section 13.08.050 because of nonpayment for services at other locations may be included in any of the customer's accounts for purposes of billing and collection. (b) Errors. (1) The Department will use all reasonable means to avoid billing errors and will, as soon as any error is discovered, rebill for the correct amounts, whether this involves additional payment by the customer or credit to his or her account by the Department, regardless of the time periods involved. Payments due the Department for such errors shall be collected in the same manner as payments for regular bills for service. (2) Incorrect billing due to faulty meter measurement beyond the accuracy limits hereinbefore stated shall be corrected by revised billing based upon corrected readings for a period during which the meter inaccuracy existed, but in no event for a period longer than one (1) year. Bills for corrected usage shall be due and payable in the same manner as regular bills for service. (c) Diversion of electric energy. (1) In any case where energy-consuming devices or equipment are connected ahead of the meter or there has been any tampering with or connections to the Department's distribution system or any tampering with the Department's meter, including breaking of meter seals which would make possible or result in the consumption of electricity not registered on the Department's meter, the customer shall be liable to immediate discontinuance of service and to prosecution under applicable laws. (2) In the event of such diversion of electricity, the Department shall be entitled to collect from the customer at the appropriate rate for all additional power and energy estimated by the Department which was not registered on the meter because of such diversion of electricity and also for all expenses incurred by the Department on account of such unauthorized act or acts. Further, service will not be reconnected until the customer shall have installed such entrance and service equipment as is necessary to prevent further diversion of electricity. (Prior code §7.3-6; Ord. 366 §1(part), 1969; Ord. 14-78 §1, 1978; Ord. 2-83 §1, 1983; Ord. 13-83 §3, 1983; Ord. 15-97, 1997) 13.08.070 Town's facilities. (a) Continuity of service. The Department will endeavor to furnish and supply, but does not guarantee, uninterrupted electric service. The Department will not be liable for interruptions due to maintenance functions considered necessary or to causes or contingencies beyond the control of the Department, including but not limited to accidents, breakdown of equipment, acts of God, floods, 13-11 12 storms, fires, strikes, riots, war or authority and orders of government, or for disconnection because of unsafe wiring, operation of equipment detrimental to other customers, nonpayment of bills for service or diversion of electricity. The Department shall also be not liable for any injury, loss or damage occasioned by any interruptions arising from the foregoing causes. Such interruptions shall not relieve the customer of payments for service under applicable rate schedules. (b) Shortage of electricity. The Department will make every reasonable effort to furnish a continuous supply of electricity to meet demands. However, should shortages occur by reason of acts of God or causes beyond the immediate control of the Department, the Department shall have the right to grant preference to those services which in its opinion are the most essential to the public welfare. The Department shall not be held liable for monetary loss of business from shortages in supply of electric energy. (c) Liability. All installations of wire, meters, transformers or other materials or equipment made by the Department at its expense shall remain the property of the Department and shall not be tampered or interfered with directly or indirectly by the customer or any other unauthorized persons. The customer shall be liable for any damage or loss to the Department's property or injury to the Department's employees through such unauthorized tampering or interference. (Prior code §7.3-7; Ord. 366 §1(part), 1969; Ord. 15-97, 1997) 13.08.080 Customer's use and facilities. (a) Easements. (1) By making application for electric service, the customer agrees to grant or arrange for an easement on the customer's property for the installation, operation and maintenance of electric lines, wires and other equipment of the Department necessary to render service to the customer. When requested by the Department, the customer shall without expense to the Department make or procure conveyance to the Department of satisfactory right-of-way easements across the property owned or controlled by the customer for the Department's lines or extensions necessary or incidental to the furnishing of service to the customer. If such installation must be made on or over the property of a third party, it shall be necessary for the customer to obtain an easement for the Department from the third party before the installation can be made and service rendered. (2) If, after service is originally rendered, the customer should divide his or her property in such a manner that part of it no longer has access to the rights-of-way of the Department's distribution system, the customer shall reserve an easement for the benefit of the Department so that the Department may render electric service to such isolated part when desired. (b) Right of access. Authorized employees of the Department shall have the right of access to the customer's premises at all reasonable times for the purpose of inspecting, repairing, replacing or removing Department-owned equipment. The customer shall provide a means of ingress and egress through locked gates by providing suitable means for a Department lock to be installed on the gate. (c) Foreign power. The customer shall make exclusive use of service provided by the Department, and no other source of electric energy shall be connected to any installation which in turn is connected to the Department's electric distribution system. This does not preclude the use of emergency generating systems owned by the customer, provided that switching arrangements are 13-11 13 installed to prevent the possibility of the emergency generator and the Department service being connected to the load simultaneously. The manner of connection of any emergency generating system must be approved by the Department prior to use. (d) Resale of electricity. Electric service will be furnished for the sole use of the customer at the premises designated in the service application and contract, and the customer shall not directly or indirectly sell or otherwise dispose of such service to any other person or persons. The Department reserves the right to refuse to furnish electric service to any customer where such service is to be resold to others. In the event that such resale comes to the attention of the Department, the Department shall have the right to either discontinue service to the customer or to furnish service directly to the subcustomer. (e) Indemnity to Town. The Town shall not be held responsible for any injury to persons or damage to property occasioned or caused by the acts, omissions or negligence of the customer or of any of his or her agents, employees or licensees in installing, maintaining, operating or using any of the customer's lines, wire, equipment, machinery or apparatus and for injury and damage caused by defect in the same. The customer shall hold the Department harmless and indemnify it against any and all claims and liability for injury to persons or damage to property when such damage or injury results from or is occasioned by the facilities located on the customer's side of the point of delivery unless caused by the negligence or wrongful acts of the Department's agents or employees. (Prior code §7.3-8; Ord. 366 §1(part), 1969; Ord. 22-91 §§1-3, 1991; Ord. 15-97, 1997) Chapter 13.10 Light and Power Discontinuance Regulations 13.10.010 Adoption of Public Utilities Commission discontinuance regulations. The rules and regulations for discontinuance of electrical service promulgated by the Public Utilities Commission of the State, and as set forth in the Town's tariff sheets implementing the rule and regulation of the Public Utilities Commission, as are on file with the Commission, referred to in this Title as the discontinuance regulations, are enacted, adopted by this reference and incorporated in this Chapter as if set out at length. Three (3) copies of such regulation are now filed in the office of the Town Clerk and one (1) copy is now filed in the office of the Director of the Light and Power Department, and may be inspected during regular business hours. (Ord. 22-80 §1, 1980; Ord. 15-97, 1997) Chapter 13.16 Light and Power Extension Policies 13.16.050 Line extensions. (a) In all cases the facilities so provided shall be constructed in accordance with the Town's standard specifications and shall be the Town's property up to the point of delivery specified in the applicable Town's rules and regulations. 13-11 14 (b) In unusual circumstances where, because of the application of the terms of this policy, either the applicant or the Town would be unduly burdened; or where the extensions are deemed necessary or desirable for the development or protection of its territory; or where resale or wholesale customers are involved, the Town reserves the right to deal with such unusual situations independently on their own merits and without reference to the provisions of this policy. (c) The Town may establish special rates for service from an extension providing for the payment of either a fixed charge per customer in addition to the general rates applicable, or a special minimum in case a fair return on the Town's investment is not anticipated. (d) All electric line extension construction shall conform to prevailing standards, based on present-day construction methods and practices, and shall conform to all safety requirements, the work being done in a safe and workmanlike manner. The estimated cost, which shall include all material, labor, engineering, rights-of-way, tree trimming, incidental and overhead expenses necessary to protect the Town's existing system so as to adequately supply the required electrical service, shall be based on the standards but in addition shall include special allowance for items which may be required to meet local construction conditions. Discretion as to character of construction, the capacity required and the route selected for an extension shall rest with the Town. (e) The applicant shall execute the Town's standard right-of-way agreement granting free of charge to the Town such rights-of-way across the applicant's premises as may be required for poles, anchors and other construction work necessary for rendering the service requested by the applicant. (f) The date of service shall be declared as the date the applicant first receives service under the classification requested by the applicant. (g) Where there is more than one (1) customer on an extension, the guarantee of each individual customer may be determined by any method satisfactory to the customers, or may be determined by the Town in general proportion to the cost of construction necessary to serve each customer. (h) In all cases where additional customers desire service from an extension already built on an open contract, the amount of guarantee necessary and its apportionment among customers shall be adjusted on the basis of existing and proposed new customers. If the addition of new customers reduces the guarantee required of existing customers, advanced construction deposits made by new customers will be credited to existing customers' accounts in direct proportion to the amount originally advanced. If the inclusion of new customers increases the amount of guarantee required of existing customers, the extension necessary for the new customers will be calculated separately as a new extension and according to provisions in preceding paragraphs. (Prior code §7.5(d); Ord. 366 §1(part), 1969; Ord. 15-97, 1997) 13-11 15 II. WATER Chapter 13.20 Water Administration 13.20.010 Creation of Water Department. There is created and established a Water Department of the Town for the purpose of the management, maintenance, care and operation of the Town waterworks. (Prior code §6.1) Chapter 13.22 Water Activity Enterprise 13.22.010 Establishment of the Enterprise. The Town hereby establishes the Enterprise as an agency of the Town and formally designates it as the "Town of Estes Park, Water Activity Enterprise." It shall be the purpose of the Enterprise to pursue or continue all of the Town's water activities, including those defined in Title 37, Article 45.1, Part 1, C.R.S. (the "Act"), such as water acquisition or water project or facility activities, including the construction, operation, repair and replacement of water facilities, and administration, using revenues and income generated by and earned or acquired in connection with such water activities and held and managed in the Town's water enterprise fund. As between the Town and the Enterprise, all water activities will be deemed done and furnished by the Enterprise. (Ord. 8-99 §1, 1999) 13.22.020 Enterprise excluded from the provisions of TABOR. Pursuant to and in accordance with the Act, the Enterprise shall be excluded from the provisions of TABOR and shall be entitled to impose rates, fees, tolls and charges; collect and spend revenues; issue revenue bonds; and construct, operate and maintain facilities and provide water services; all without reference or regard to the limitations contained in TABOR. (Ord. 8-99 §2, 1999) 13.22.030 Governing body. The members of the Board of Trustees shall serve as the governing body of the Enterprise and shall be known collectively as the Board of Directors of the Enterprise (the "Enterprise Board"). Acting as the Enterprise Board, the Board may exercise the Town's legal authority relating to water activities as defined in the Act. The Enterprise Board hereby is directed to take all actions necessary to cause the Enterprise to comply with all applicable laws. (Ord. 8-99 §3, 1999) 13.22.040 Powers of the Enterprise. The Enterprise shall have all powers and authority granted to water activity enterprises by the provisions of the Act, including but not limited to the power to conduct and continue water activities as defined in the Act; the power to contract with any person or entity, including other districts as defined in the Act and other water activity enterprises as defined in the Act; and the power to issue 13-11 16 and reissue revenue bonds through its governing body in accordance with and through the provisions of Section 37-45.1-104(2), C.R.S. (Ord. 8-99 §4, 1999) 13.22.050 Enterprise obligations and Town obligations. In consideration of the Enterprise's commitment to provide water services for which the Town actually is obligated and to collect and spend revenues from rates, fees, tolls and charges imposed by the Town, the Town hereby agrees to continue to provide administrative services for the Enterprise and its activities, to continue to hold title to and own all of the assets currently owned by the Town and necessary to the operation of the Enterprise, to levy taxes for and pay debt service on general obligations of the Town incurred in the past to finance the acquisition, construction and installation of water facilities and improvements, and to impose all rates, fees, tolls and charges for water activities. The relationship between the Town and the Enterprise with respect to the administration of the Enterprise, the operation of the water activities and the duties and responsibilities of each party shall be as herein set forth and as may be delineated and clarified from time to time in a joint resolution of the Board of Trustees and the Enterprise Board which may be adopted at any time when the Enterprise Ordinance codified herein is in full force and effect ("Joint Resolution"). (Ord. 8-99 §5, 1999) 13.22.060 Transactions in the name of the Town. Any and all transactions of the Enterprise may be done in the name of the Town or in the name of the Enterprise and neither this Section nor any transaction entered into pursuant to it shall alter or abrogate the relationship of the Town and the Enterprise as established in Section 13.22.050 and as may be further clarified from time to time in a Joint Resolution. (Ord. 8-99 §6, 1999) Chapter 13.24 Water Rules and Regulations 13.24.010 Inspections. Whenever the Department deems it necessary, it may inspect the premises or buildings of any water customer for the purpose of examining the condition of all pipes, motors, meters and water fixtures, or the manner in which the water is used. The Department shall be vigilant to protect and remedy all abuses, whether from waste or other improper use of water. (Prior code §6.4; Ord. 15-97, 1997) 13.24.050 Separate connections required. Each lot receiving water service must have a separate service line running from the corporation cock, located at the Town water main. (Prior code 6.12; Ord. 11-73 §1, 1973; Ord. 15-97, 1997) 13.24.080 Water service and usage. (a) Continuity of service. The Department will endeavor to furnish and supply, but does not guarantee, uninterrupted water service. The Department will not be liable for interruptions due to 13-11 17 maintenance functions considered necessary or to causes or contingencies beyond the control of the Department, including but not limited to accidents, breakdown of equipment, acts of God, floods, storms, fires, strikes, riots, war or authority and orders of government, or for disconnection because of unsafe operation of equipment detrimental to other users, nonpayment of bills for service or diversion of water. The Department shall also be not liable for any injury, loss or damage occasioned by any interruptions arising from the foregoing causes. Such interruptions shall not relieve the customer of payments for service under applicable rate schedules. (b) Shortage of water. The Department will make every reasonable effort to furnish a continuous supply of water to meet demands. However, should shortages occur by reason of acts of God or causes beyond the immediate control of the Department, the Department shall have the right to grant preference to those services which in its opinion are the most essential to the public welfare. The Department shall not be held liable for monetary loss of business from shortages in supply of water. (c) No claim shall be made against the Town on account of the breaking of service pipes or apparatus or for failure in the supply of water. No reduction in the rates will be made for any time that service pipes or fixtures may be frozen. (d) Liability. All installations of water pipes or other materials or equipment made by the Department at its expense shall remain the property of the Department and shall not be tampered or interfered with directly or indirectly by the customer or any other unauthorized tampering or interference. (e) Sprinkling restrictions. In case of water shortage or scarcity, the Board may by resolution place any restrictions which it deems necessary upon the use of water for irrigation or sprinkling purposes. (Prior code 6.13; Ord. 15-97, 1997) 13.24.120 Extraterritorial water service. (a) Use of water outside the Town limits shall be subject to the paramount rights of users within the Town limits, and in case there shall be insufficient water to provide for users both within and without the Town limits, the Board may reduce, curtail or shut off the users outside the Town limits during such period of water shortage or scarcity. (b) All applicants for water service outside the boundaries of the Town, including any changes or enlargement of service, shall, if required by the Town, annex their property to the Town prior to furnishing of water service; or if their property is not eligible for annexation, execute a water tap agreement requiring annexation to the Town when said property is eligible for annexation. (Prior code §6.19; Ord. 24-98 §1, 1998) 13.24.150 Regulations; part of contract. All regulations of the Town shall be considered a part of the contract of every person taking water from the Town waterworks, and every person taking water shall be considered as having expressly consented to be bound thereby. (Prior code §6.27) 13-11 18 13.24.230 Contract line extension policy. (a) The Town has constructed certain water mains to provide water service to undeveloped portions of the Town's water service area. A listing of these water main extensions and the areas they serve is on file in the Water Department. All connections to these mains from the designed areas shall be subject to a contract line assessment. (b) The Town reserves the right to charge the entire contract line assessment for any new subdivision at the time of the issuance of the first building permit in said subdivision. (Ord. 1-92 §1, 1992; Ord. 2-93 §7, 1993; Ord. 15-97, 1997) Chapter 13.26 Cross-Connections 13.26.010 General policy. The Water Department shall be responsible for the protection of the Town’s potable water distribution system from contamination or pollution due to the backflow of contaminants or pollutants through the water service connection. If, in the judgment of the Water Department, an approved backflow-prevention assembly is required at the consumer’s water service connection; or, within the consumer’s private water system for the safety of the water system, the Water Department shall give notice in writing to said consumer to install such an approved backflow-prevention assemblies at specific locations on his or her premises. The consumer shall install such approved assemblies within the time frame set forth in the notice and at his or her own expense; and, failure, refusal or inability of the consumer to install, have tested and maintain said assemblies shall constitute grounds for discontinuing water service to the premises until such requirements have been satisfactorily met. (Ord. 3-04 §1, 2004) 13.26.020 Definitions. Definitions of terms used in this Chapter are those contained in the Colorado Cross-Connection Control Manual, Department of Health and Environment’s latest edition unless otherwise defined below: (1) Approved backflow device means a backflow device or air gap meeting the standards and installation requirements of the A.S.S.E. (American Society of Sanitary Engineers), the latest edition of the Cross-Connection Control Manual and/or the requirements of the Water Department. Approval by the Department will be dependent upon the hazards assessed, but shall not be less than the Cross- Connection Control Manual requirements for potable water system protection. Approved status shall also be contingent on inspection, testing and passing of such test by a Certified Cross-Connection Control Technician. Any variation or exception may be by direction from the current edition of the Colorado Cross-Connection Control Manual. (2) Certified Cross-Connection Control Technician means a person who has passed and possess a current certification for one of the following national certification councils: American Society of Sanitary Engineers (A.S.S.E.), the American Backflow Association (A.B.P.A.), the 13-11 19 American Boards of Certifications (A.B.C.) for backflow tester and repairer. Any variation or exception will be by direction from the current edition of the Cross-Connection Control Manual. (3) Containment means the installation of an approved backflow device isolating the premises and all plumbing connections to the service connection therein from the Town’s potable water supply. At the Department’s discretion, installation of the approved backflow device shall, at a minimum, be placed at or near the property line with all necessary equipment/enclosures to ensure uninterrupted service and meet all installation safety codes at the consumer’s expense. (4) Cross-connection means a connection or potential connection between any part of the Town’s potable water system and any other environment containing other substances in a manner that, under any circumstances, would allow such substances to enter the Town’s potable water system. Other substances may be gases, liquids or solids, such as chemicals, waste products, steam, water from other sources (potable or nonpotable) or any matter that may change the color or add odor to the water. (5) Department means the Town’s Water Department. (6) Service connection means the terminal end of the water supplier service connection from the Town’s potable water distribution system to the threads on the corporation stop where the Department loses jurisdiction and sanitary control and consumer ownership begins. Service connection shall also include water service connection from a fire hydrant and all other temporary or emergency water service connections from the Town’s potable water system. (Ord. 3-04 §1, 2004) 13.26.030 Requirements. (a) New connection. All new connections to the Town’s water system shall have an approved backflow device. The Department will provide on-site evaluation and/or plan review in order to determine the type of backflow device that will be required as a condition of service. All new connections requiring a backflow device shall be inspected and tested by a Certified Cross-Connection Control Technician. (b) Changes in service. Any changes in service, including but not limited to reconnection, change in the number of fixture values, or changes in the type of water service, shall require installation of an approved backflow device. (c) Existing installations. For connections or premises without backflow devices existing prior to September 1, 2004, the Department will perform on-site evaluations and/or plan reviews and inform the consumer by letter of any corrective action deemed necessary, the method of correction and the time allowed for correction as a condition of service. Up to sixty (60) days will be allowed but may be shortened depending upon the degree of hazard (pollutant or contaminant) involved. The Department does not waive the right to require a backflow device if future directions requires such. (d) Testing. All backflow devices shall be tested at least annually by a Certified Cross-Connection Control Technician using the latest test procedures as specified by one (1) of the following councils (A.S.S.E., A.B.C., A.B.P.A.), and is not a failed device. 13-11 20 (e) Emergency disconnection. At the Department’s discretion, severing the service connection will be performed if the degree of hazard warrants such action in order to protect the Town’s potable water supply. Discontinuance of service may be summary, immediate and without written notice whenever, in the judgment of the Department, such action is necessary to protect the Town’s potable water supply or the distribution system. (f) Failure to comply. If, after a first notice by letter or direct delivery of notice, the consumer fails to comply with the Department’s directive or fails to allow access to premises for inspection, immediate termination of service will occur, or at the Department’s discretion, no more than an additional ten (10) days shall be granted to comply with said directive. Failure to allow access by the consumer, or those designated by him or her, to premises for inspection by the Department will automatically classify the premises as a high hazard risk to the Town’s potable water supply. Appeal of any notice shall be directed to the Public Works Director. An appeal shall not stay the execution of the failure to comply order by the Department in order to protect the Town’s potable water supply. The failure to comply order may be reversed if the appeal is upheld. (g) Record keeping. The Department shall maintain records of all backflow device inspections and test results for a minimum of three (3) years. (h) Variance. Upon written application by the consumer, the Department may vary any of the requirements of this Section upon the finding by the Department that an approved backflow device is not necessary to protect the Town’s potable water supply. The Department may approve the variance with or without conditions. (Ord. 3-04 §1, 2004) 13.26.040 Requirements of consumer. (a) Cross-connections. The consumer shall be responsible for the elimination or protection of all cross- connections (known or unknown by the Department) on his or her premises by an approved backflow device at his or her expense. Such backflow device expenses shall include installation, maintenance, protection, testing, repair, removal or replacement of said devices as required by the Department as a condition of service. (b) Backflow device. The consumer or those occupying any premises shall not bypass, disable, remove or modify any backflow device without written consent by the Department. Any such modifications shall result in termination of service. (c) Fire suppression system design and installation. The consumer or those designated by him or her will comply with current National Fire Protection Association (N.F.P.A.) standards and/or the current Water Department Policy Manual as amended when designing, installing and maintaining any fire suppression system as a condition of service. (Ord. 3-04 §1, 2004) 13-11 21 Chapter 13.28 Metered Service 13.28.050 Customer liable for meter damage. All customers shall be liable for any damage to a water meter caused by freezing or the willful or negligent acts of the customer. All such damages shall be charged to and paid for by the customer. In the event the damages shall not be paid when due, the provisions and procedures of Chapter 13.32 pertaining to delinquent water rent shall apply to all unpaid charges for such damages. (Prior code §6.21-5; Ord. 16- 72 §1(part), 1972) 13.28.080 Interfering with or bypassing meters unlawful. It is unlawful for any meter user under meter rates as set forth in this Code, or for any other person, to tamper or interfere with any meter, remote reader or meter seal, or to so arrange his or her water service or piping so that the use of water will not actuate the meter. The Town shall discontinue water service immediately to any user who violates the provisions of this Section until satisfactory payment has been made for all water used and all repairs to the meter. (Ord. 13-77 §5, 1977) 13.28.090 Charges when meter fails to register. If any meter fails to register in any billing period, the water user shall be charged according to the average quantity of water used in a similar period as shown by the meter when in order, and the Water Department may prorate any water bill for any such period of time water service is received while not being metered. (Ord. 13-77 §6, 1977) Chapter 13.32 Water Rates and Charges 13.32.010 Water rate schedule. (a) Applicability. The water rate schedule is applicable to water service for all customers receiving water service from the Town's water system. (b) Rates. The rates for water service to all customers on the Town's water system are as more fully set forth on the Town's water rate schedule on file in the office of the Director of Public Works. (Prior code §6.28-2; Ord. 293 §3; Ord. 328 §2; Ord. 371 §2; Ord. 10-71 §9, 1971; Ord. 5-74 §2, 1974; Ord. 4-75 §1(part), 1975; Ord. 12-77 §2, 1977; Ord. 6-78 §7, 1978; Ord. 34-78 §4, 1978; Ord. 7-79 §2, 1979; Ord. 28-79 §2, 1979; Ord. 13-80 §2, 1980; Ord. 24-80 §3, 1980; Ord. 12-85 §3, 1985; Ord. 21-86 §3, 1986; Ord. 29-87 §2, 1987; Ord. 2-93 §2, 1993; Ord. 1-94 §3, 1994; Ord. 15-97, 1997) 13-11 22 13.32.040 Discontinuance, termination and abandonment of service. Any person who desires to discontinue the use of water shall file written notice with the Finance Officer and pay all current and back charges for water used. Any customer who fails to pay the applicable minimum rate set forth in this Chapter for a period of one (1) year, or whose service is terminated as elsewhere provided in this Chapter and whose service has not been restored within one (1) year from such termination, shall lose any right to have any water service, including the forfeiture of the connection charge. Any reconnection to the Town's water system after disconnection of service, pursuant to this Section, shall require a new application for service including payment of all tap fees and connection charges. Any tap connection that is terminated shall be physically disconnected from the Town's water system at the owner's expense. (Prior code §6.11; Ord. 6-78 §4, 1978; Ord. 7-79 §1, 1979; Ord. 2-93 §1(part), 1993; Ord. 15-97, 1997) 13.32.080 Unpaid water and connection charges a lien. All water and connection charges shall be charged against the owner of the property served, shall be a lien upon the respective lots or parcels of land where the water is used from the time when due and shall be a perpetual charge against the lots or parcels of land until paid. In the event said charges shall not be paid when due for property within Town limits, the Town Clerk shall certify such delinquent charges to the County Treasurer and the charges shall be collected in the same manner as though they were part of the taxes. On all delinquent water and connection charges for property outside the Town limits, there shall be a charge of one and one-half percent (1.5%) per month on the amount due, which shall be added to the amount due until paid. In the case of condominiums to which water is furnished, the consumption of every condominium unit, the lien for the unpaid water, interest and costs, if any, imposed by this Code shall attach upon such condominium unit in an amount which is computed by dividing the total amount of the lien by the number of condominium units. (Prior code §6.25; Ord. 316 §2; Ord. 10-71 §6, 1971; Ord. 19-73 §1(part), 1973; Ord. 13-77 §7, 1977; Ord. 6-78 §5, 1978) Chapter 13.38 Bulk Rate Water Customers 13.38.010 Bulk rate water users. A bulk rate water user is a person or an entity controlling or owning and maintaining its own water distribution system, which system is connected to the Town's water system by a single connection through a single meter. Only such systems in existence on April 1, 1987, shall be eligible for acceptance as a bulk rate water user, unless otherwise approved by the Board of Trustees. This rate structure is not intended to apply to developments served by private service lines that are master-metered in accordance with Section 13.28.030. (Ord. 4-87 §1(part), 1987) 13.38.110 Distribution system. It is understood and agreed by the applicant and all persons receiving water through the master meter that the Town has no control of or has not approved the distribution system from the master meter to the ultimate user of the water. The Town shall not be responsible for the repair or 13-11 23 maintenance of the distribution system. No claim shall be made against the Town on account of the breaking of any part of the distribution system or for the failure of supply of water to same. The applicant and all others receiving water through the distribution system under the terms and conditions of this Chapter understand that the Town does not warrant at any time an adequate supply of water to the system and/or the design and workmanship of the distribution system. Any change in the quality of the water after delivery to the master meter is not the responsibility of the Town. (Ord. 4-87 §1(part), 1987) 13-11 To: Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Jackie Williamson, Director Date: August 8, 2012 RE: Property/Liability Insurance – CIRSA Coverage Background: The Town of Estes Park has been covered by CIRSA since 1988 for property and liability insurance. CIRSA is a not-for-profit organization owned and operated by its members since 1982, and is designed to shield public entities from the insurance market’s cyclical problems of cost, capacity and uncertainty. This governmental entity, not an insurance company, provides members comprehensive, customizable coverage, while members build equity in the pool and any surplus funds are returned directly to them, not shareholders. The Town’s property coverage includes all town owned properties, buildings and their contents, automobile physical damage, mobile equipment and machinery, exterior signs, and other property such as fine arts, valuable papers, and miscellaneous outdoor properties and equipment, such as park structures, street signs, signals and transformers. The Town liability coverage includes general, auto, law enforcement and public official errors and omissions. General liability coverage protects the Town against claims for bodily injury and property damage from a third-party. Auto coverage protects the Town against claims for bodily injury or property damage arising out of the Town’s operation, maintenance, or use of an automobile. Law enforcement coverage protects against claims for bodily injury or property damage arising out of police operations. Public official coverage protects against claims for actual or alleged errors, omissions or negligent acts. Attached is a copy of the Town’s 2012 property/casualty coverage plan structure from CIRSA. The Town carries $500.5 million in excess property insurance per claim/occurrence and $5 million in excess liability per claim/occurrence, except auto liability at $1.5 million. The Town’s deductible is $5,000 per claim/occurrence. Administrative Services Page 2