Town of Neder land

TOWN OF NEDERLAND BOARD OF TRUSTEES REGULAR BUSI NESS M EETI NG

NEDERLAND COM MUNI TY CENTER 750 Hwy 72 Neder land, CO 80466 M ay 21, 2013, 7:00 P.M .

AGENDA

A. CALL TO ORDER

B. ROLL CALL

C. CONSENT AGENDA

• Approval of May 21, 2013 Accounts Payable

• Approval of May 7, 2013 Regular Meet ing Minutes

• Renewal of Senior Van Agreement with Wild Bear

D. STAFF REPORTS 1. Al isha Reis, Town Administ rator 2. Michele Mar t in, Town Clerk 3. Eva Forberger, Town Treasurer 4. Jake Adler , Town Marshal 5. Jason Morr ison, Publ ic Works Manager 6. Dawn Baumhover , Community Center Coordinator

E. BOARD OF TRUSTEE REPORTS 1. Mayor ’s Repor t 2. Trustees’ Repor ts

F . PUBLI C COM M ENT ON NON-AGENDA I TEM S (Speakers l imited to 3 minutes)

G. I NFORM ATI ONAL I TEM S 1. BOT Goals Update 2. 2012 Town Audit Presentat ion 3. Presentat ion, re: EcoPass Opt ions, Countywide EcoPass Study 4. Presentat ion. re: Community Solar Garden project

Town of Neder land

H . ACTI ON I TEM S 1. Considerat ion of appointment of Jody Andrews to the Sustainabil i ty Advisory Board 2. Considerat ion of Proposal for Performance Space at Decommissioned Lagoon Site 3. Considerat ion of Request for Fee Waiver for Old Timers’ Days/Parade and Miners’

Days 4. Considerat ion of NedFest Faci l i ty Agreement (including camping al lowance) 5. Considerat ion of Adopt ion of 2010 Model Traffic Code, with Amendments I . DI SCUSSI ON I TEM S No Discussion I tems are Scheduled. J. OTH ER BUSI NESS

K. ADJOURNM ENT

The Board of Trustees encourages citizen participation. Public hearings and the “unscheduled citizens” agenda item allow an opportunity to address the Board. Discussion is limited to 3 minutes and please address your comments to the Board. Thank you for your cooperation. The Board of Trustees may take action on any item included on this agenda, regardless of the heading under which such item appears. Discussion items may become action items if the Board determines that deferring final action on an item to a subsequent meeting is unnecessary or unwarranted and that taking immediate action does not compromise any third-party's rights. The Board of Trustees meeting packets are prepared by Friday before the Tuesday meetings and are available for inspection at Town Hall during normal business hours. The information is reviewed and studied by the Board of Trustee members, eliminating lengthy discussions to gain basic understanding. Short discussion on agenda items does not reflect lack of thought or analysis. The agendas are posted at Town Hall, the post office, and on the Town's website on the Friday prior to the meeting. Copies of the agenda and meeting packet are available at no cost via email from the Town Clerk or from the Town website at www.nederlandco.org.

TOWN OF NEDERLAND BOARD OF TRUSTEES REGULAR M EETI NG:

M ay 21, 2013 Responsible Depar tment: Administration Contact Staff M ember : M ichele M ar tin, Town Clerk

Consent Agenda I tems which are not controversial in nature; have been

previously discussed and considered

A. Approval of May 21, 2013 Accounts Payable. B. Approval of May 7, 2013 Regular Meet ing Minutes. C. Renewal of Senior Van Agreement with Wild Bear .

BOARD M EM BERS M AY: M ove TO APPROVE the Consent Agenda Or M ove TO AM END by removing or adding from the Consent Agenda By A roll call vote of the Board of Trustees

TOWN OF NEDERLAND WARRANTS

WARRANTS FOR 05/21/13

Date Number VENDOR AMOUNT DESCRIPTION15-May 27352 Canon Business Solutions 97.18$ quarterly maintenance for Town Hall copier15-May 27353 Co District Attorney 25.00$ professional development for Police Department15-May 27354 CDPHE 123.24$ lab tests for sewer15-May 27355 Dencol 355.90$ minor equipment for streets15-May 27356 DPC Industries 2,646.08$ chemicals for water/sewer15-May 27357 Everitt Nielsen 176.28$ reimbursement for mileage for taking water test15-May 27358 Eva Forberger 4,550.00$ monthly accounting/treasurer fees15-May 27359 Frachetti Engineering 12,211.83$ monthly construction engineering for waste water plant15-May 27360 Green Girl Recycling 125.00$ pickup recycling materials for Town15-May 27362 Clarence Jagt 144.00$ community center maintenance and board setup15-May 27363 Murray Dahl 3,518.74$ monthly legal fees for Town15-May 27364 Kathmandu 64.00$ Nedweb Program15-May 27365 Pride Enterprises 182.00$ business cards and other printing for Town15-May 27366 LG Everist 5,339.72$ road base for Town15-May 27367 Motion & Flow Control 430.96$ minor equipment for streets15-May 27368 Michele Martin 171.76$ reimbursement for mileage for clerks training

15-May 27369 Morgan Rooter Service 150.00$ professional services for water plant15-May 27370 NeoFunds by NeoPost 700.00$ postage refill on meter15-May 27371 Century Link 1,484.12$ monthly internet/phone service for Town facilities15-May 27372 Century Link 19.28$ monthly long distance service for town facilities15-May 27373 Ramey Environmental 1,716.84$ monthly water/waste water testing and OPR support15-May 27374 Safebuilt 397.59$ monthly building inspection/plan review fees15-May 27375 Donna Schnedier 393.75$ monthly prosecutor fees15-May 27376 Ted D Miller Associates 423.75$ professional services for water plant15-May 27377 UMB Bank 20,005.00$ interest payment on GO Bond for community center renovations15-May 27378 Western Disposal 318.75$ monthly invoice for trash pickup15-May 27379 Xcel Energy 665.62$ monthly street lights 15-May 27380 Ace Hardware 879.30$ minor parts and equipment for Town facilities15-May 27381 AT&T 225.06$ cell phone for Town personnel15-May 27382 B&F 139.36$ BOT meals/other supplies for Town departments15-May 27383 Brightwood Music 35.00$ new mic holder15-May 27384 Broadway Automotive 1,550.15$ minor parts for repairs on streets equipment15-May 27385 C&M Rebuilders 224.26$ minor parts for repairs on streets equipment15-May 27386 Grainger 425.77$ minor equipment for streets15-May 27387 Napa Auto Parts 238.25$ minor parts for repairs on streets equipment15-May 27388 New Moon 16.00$ Nedweb Program15-May 27389 Randy Lee 77.08$ reimbursement for printing maps for trails meeting

Total Non Payroll Warrants 60,246.62$

BOT- 052113.xls/Town - 1 -

***DRAFT – Not yet approved by Board of Trustees***

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TOWN OF NEDERLAND BOARD OF TRUSTEES

REGULAR M EETI NG M I NUTES: M ay 7, 2013, 7:00PM

NEDERLAND COM M UNI TY CENTER

750 H wy 72 Neder land, CO 80466 _____________________________________________________________________________ A. CALL TO ORDER Meet ing convened at 7:05 PM. B. ROLL CALL Present: Mayor Joe Gier lach, Mayor Pro Tem Kevin Muel ler , Trustees Randy Lee, Ledge Long, and Chr is Perret . Trustee Annette Croughwell joined the meet ing after roll call was taken. Absent : Trustee Peter Fior i Also present: Al isha Reis, Town Administ rator , Carmen Beery, Town At torney, Eva Forberger, Town Treasurer , and Michele Mart in, Town Clerk. C. CONSENT AGENDA

• Approval of May 7, 2013 Accounts Payable, Schedule A and B.

• Approval of Apr i l 16, 2013 Regular Meet ing Minutes.

• Approval of Lease with Crust Pizza for use of Community Center K itchen. Treasurer Forberger noted two cor rect ions to the Consent Agenda. Under the warrants, payment to Nicodemus, the descr ipt ion should read “instal l heater for Big Spr ings Pump House”. Under the Lease Agreement for Crust Pizza, there was a typo. The rent should be $360/month, not the $300 as l isted. Mot ion to approve the Consent Agenda, Schedule A, the minutes of Apr i l 6, 2013, and the Lease with Crust Pizza, was made by Trustee Lee, seconded by Trustee Long and passed. Mot ion to approve the Consent Agenda, Schedule B, was made by Trustee Perret , seconded by Trustee Long and passed, with Trustee Lee abstaining D. PUBLI C COM M ENT ON NON-AGENDA I TEM S

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Ron Mitchel l , of greater Neder land, shared with the Board some resource mater ials he has been researching regarding downtown development.

• Improving Downtown’s Curb Appeal , by Downtown Research & Development Center

• Pr ior i ties for Downtown Organizations, by Downtown Research & Development Center

• Guiding Design on Main Street: A Professional ’s Manual for Managing Design, by Richard D. Wagner

• Placemaking on a Budget: Improving Smal l Towns, Neighborhoods & Downtowns Wi thout Spending a Lot of Money, by Al Zel inka and Susan Jackson Harden

• Niche Strategies for Downtown Revi tal ization, by David Milder

• Walkable Ci ty: How Downtown Can Save America, One Step at a Time, by Jeff Speck

• Main Street Renewal , by Roger L. Kemp

• Unsprawl : Remixing Spaces as Places, by Simons B. Bunt in with Ken Pir ie

• Making Business Distr icts Work: Leadership and Management of Downtown, Main Street, Business Distr ict, and Communi ty Development Org, by David Feehan, and Marvin D. Feit

• The High Cost of Free Parking, by Donald Shoup

E. I NFORM ATI ONAL I TEM S 1. Proclamat ion of thanks to the Neder land Fire Protect ion Dist r ict for 100 years of service.

Mayor Gier lach read the prepared Proclamat ion congratulat ing and thanking the Neder land Volunteer Fire Depar tment for their super ior fi re protect ion, rescue and emergency medical services these past 100 years. Chief Rick Dirr had a few words of thanks and grat itude for the appreciat ion shown tonight .

2. RFP for Master Infrastructure Plan project . Town Administ rator Reis int roduced the i tem. The Town has received a matching grant from the Depar tment of Local Affairs (DOLA) to suppor t this project . The schedule to complete is by the end of the year, with a final report to DOLA due November 30. The project wi l l include water and wastewater, storm water , and st reets. Mayor Pro Tem Mueller asked i f a Biomimicry professional would be par t of the team selected or i f i t was a cr iter ion. Mayor Pro Tem Mueller said he thought the biology factor was missing from the study of our infrast ructure. He said he would l ike to recommend that the team selected has a biologist on board so that the Town isn’t mit igat ing things 10 years from now. Mayor Gier lach suggested adding another bul let to the Scope of Work in regards to a biological inter face. Mayor Pro Tem Mueller suggested seeking out the Biomimicry person who came up

***DRAFT – Not yet approved by Board of Trustees***

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last year for a work session to see if they may be able to provide some assistance or volunteer some hours. Mayor Gier lach suggested put t ing a weight percentage to each of the six cr i ter ia in order to rate each fi rm. Trustee Lee pointed out a typo in the Prel iminary Project Schedule.

3. Update on NedPeds project schedule. Pat Everson, Neder land Downtown Development Author i ty (NDDA) Vice Chairperson, announced that at their Apr i l 24 meet ing, the NDDA approved a more di l igent schedule for the project . Several things have happened since that meet ing, such as: CDOT has guaranteed that they wi l l complete the histor ical clearance work this summer, saving the project roughly $5,000.00; and Xcel Energy has indicated that dur ing their major l ine change project , they wi l l work with NedPeds engineers and designers to relocate ut i l i t ies as much as possible underground, and credit an amount that would otherwise have been used for relocat ion of the poles towards the undergrounding effor t i f that was the direct ion decided upon. Everson asked what the added value was of the 60% Neder land Planning Process (NPP) and wanted to know how much money i t has cost to run this project through NPP several t imes. Mayor Gier lach suggested schedul ing a work session in August when their 90% plans are done and whi le both boards are working on their budget . Trustee Perret recommended that the Master Infrastructure Plan studies be shared with the NedPeds project team. Reis ensured that effor t would be coordinated. Mayor Pro Tem Mueller asked how the recommendat ions from the Biomimicry meet ing and the design review from the Biomimicry professional have been reflected in the 60% design documents. Reis repor ted that she has been told by the EPA that they can only offer bare minimum out reach assistance due to budgetary rest raints. Mayor Pro Tem Mueller would l ike to see a narrat ive from the EPA in regards to their assistance in helping us obtain a level of Biomimicry and the reduct ion of our environmental impact on this project . The Mayor cal led a br ief recess, which reconvened at 8:20PM.

F. ACTI ON I TEM S

1. Considerat ion of modificat ion to NedPeds engineer ing cont ract . Pat Everson introduced the agenda i tem. This is to approve a change order in the amount of

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$9,157.00 to modify the Huit t -Zol lars project engineer ing contract to include a Class I I I Cultural Resource Inventory and Report in their Scope of Work. When Huit t -Zol lars was cont racted, CDOT was responsible for this cultural and histor ic clearance. At the 30% design meet ing, CDOT informed the team that they did not have the personnel to conduct this study in the t imeframe requested. NedPeds sought out Smith Environmental, who conducted the technical background work for CDOT. Depending on what CDOT may find this summer, the project could st i l l be delayed. This modificat ion wi l l come out of the NedPeds const ruct ion budget . There was no publ ic comment. Mot ion to approve the amended cont ract with Huit t -Zol lars was made by Trustee Lee, seconded by Trustee Perret , and approved unanimously. G. DI SCUSSI ON I TEM S 1. Discussion of Gi l laspie House Faci l i ty Agreement. Reis provided background on this i tem. The Gil laspie House Museum was par t of a Special Review Use (SRU) approved for the Neder land Area Histor ical Society in 2003, along with the Bryant House and the Mining Museum. Since the Mining Museum was purchased by Boulder County in 2012, the SRU, which was fi led in 2005, wi l l be dissolved and Faci l i ty Use Agreements made for the Gil laspie House Museum and Bryant House. Due to their planned long-term leases, an ordinance is required for the agreement approval. An SRU is no longer required due to ordinance changes since 2003. Dale Porter , a caretaker of the Gil laspie House Museum, was present on behalf of the Neder land Area Histor ical Society to answer any quest ions. The Bryant House agreement wi l l come before the Board at some point in the future once detai ls are researched and final ized. The hope is to have it before the Board by the end of the year . Mot ion to move this discussion i tem to an act ion i tem was made by Trustee Lee, seconded by Trustee Croughwell, and approved unanimously. Mot ion to adopt the Ordinance approving a long-term use agreement concerning the real proper ty and improvements known as the Gil laspie House Museum, at 2 East 4th St reet , with the Neder land Area Histor ical Society, and the Publ ic Faci l i t ies Use Agreement for the Gil laspie House Museum was made by Trustee Perret , seconded by Trustee Croughwell, and approved unanimously.

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2. Discussion of 2010 Model Traffic Code Adopt ion (including electr ic cars). Town At torney Beery int roduced the i tem. The Board had directed Beery at i ts March 19 meet ing to draft an ordinance to suppor t elect r ic cars. A few weeks later , the Municipal Court Prosecutor asked staff i f the Board would be in suppor t of updat ing the Town’s t raffic rules and regulat ions by adopt ing the latest 2010 version of the Model Traffic Code for Colorado (MTC), which included reference to elect r ic cars and golf car ts. The last t ime the Town adopted the MTC was in 1995, there have been three updates since that t ime. State law requires an ordinance adopt ing a code by reference to go before the Board twice, once as an int roduct ion and the next as a public hear ing. This meet ing is for int roduct ion purposes only. A cer t ified copy of the MTC is avai lable at Town Hal l for the public to review. Chief Adler has reviewed and is in support of this ordinance. Mayor Gier lach brought up the fact that the $1,000 maximum penalty may be increased shor t ly, as there is a bil l before the State and was wonder ing how that increase would affect the adopt ion of the ordinance. Beery said she would provide opt ions for the Board pr ior to the publ ic hear ing, depending on what the legislature does. Trustee Perret noted that the ordinance should not include gas-powered vehicles and include the banning of ATVs. Beery wi l l make those cor rect ions. Mot ion to schedule the publ ic hear ing for May 21 for the considerat ion and possible approval of the ordinance was made by Trustee Perret , seconded by Trustee Lee and unanimously passed.

3. Discussion of decommissioning of wastewater lagoon, grading and drainage, and per formance space.

Reis int roduced landscaping plans from Frachet t i Engineer ing for the Board to consider for the decommissioned lagoon si te. The fi rst (Sheet L1-01) was the approved plan from 2011. The second (a blue l ine change of Sheet C1-02) or iginated from the Board’s request to staff to explore other opt ions. Mark Wer itz, Town geotechnical engineer, has reviewed both plans. Staff is seeking direct ion on how to fi l l in the area and contour the dir t , and possibly add addit ional assets to that site, such as a concrete pad and power. The Board has been discussing the potent ial of re-creat ing the lagoon site as an outdoor per formance space. Discussion cont inued in depth on the var ious contour opt ions, power avai labi l i ty, water tables, the t rai l , and potent ial for moving special events to this area. Trustee Lee noted that an outdoor performance space is a significant change that should go through the Neder land Planning Process (NPP).

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Mot ion to cont inue the meet ing to 10:30 PM was made by Trustee Croughwell, seconded by Mayor Pro Tem Mueller , and approved by a vote of 4 to 2, with Trustees Perret and Lee opposed. After much del iberat ion, i t was agreed to direct staff to inst ruct the engineers to move forward with the blue l ine version of Sheet C1-02, which keeps the t rail intact and to provide recommendat ions on the water table and the effects from designing to this proposal. Also, the Board directed staff to request pr icing to provide power to the site, as wel l as a concrete pad, to be provided at the next BOT meet ing in two weeks. The Board wil l hold a publ ic hear ing on May 21 to consider addit ional features such as a concrete pad and power at this locat ion. Reis pointed out that the end of the project const ruct ion cont ract is June 30. H . OTH ER BUSI NESS There wi l l be a Trai ls Master Plan meet ing May 8. I . ADJOURNM ENT Mot ion to adjourn was made by Trustee Long, seconded by Trustee Croughwell, and approved by unanimous voice vote. The meet ing was adjourned at 10:10 PM. Approved by the Board of Trustees. _________________________________ Joe Gier lach, Mayor ATTEST: ___________________________________ Michele Mar t in, Town Clerk

USE AGREEMENT

NEDERLAND VAN NEDERLAND, COLORADO

This Use Agreement (“Agreement”) is entered into this 21st day of May, 2013, by and between the Town of Nederland, Colorado, a Colorado municipal corporation (“Town”) and The Wild Bear Center for Nature Discovery, d/b/a Wild Bear Science School , a Colorado Non Profit Corporation, (“WB”), collectively referred to hereinafter as the “Parties.” Subject to the terms and conditions of this Agreement, the Town hereby grants WB permission to use a Town owned Van identified as a 1992 Blue Dodge Van, VIN 2B5WB35Y2NK13924, (“Van”) for the purposes of transporting participants in Wild Bear programs to activities within the vicinity of Nederland.

1. Town agrees to ensure the Van is in good working condition (i.e. check tires, change oil, perform proper maintenance) at the beginning of the Term.

2. Town agrees to ensure the Van is clean of all debris and trash at the beginning of the Term.

3. WB will pay consideration to the Town in the amount of $1. 4. The Term of this agreement is from June 3, 2013 through August 15, 2013,

unless sooner terminated as provided by Section 7. 5. WB has exclusive use of the Van Tuesday, Wednesday and Thursday. On other

days of the week, WB may use the Van but the Nederland Area Seniors (NAS) have a right of first refusal for such use. WB agrees that the Town Administrator shall resolve any dispute concerning the right to use the Van pursuant to this Agreement in her sole and absolute discretion

6. WB agrees to ensure the Van is in good working condition (i.e. check tires, change oil, perform proper maintenance) at the end of the Term.

7. WB agrees to ensure the Van is clean of all debris and trash at the end of the Term.

8. This Agreement shall immediately terminate if the Town divests itself of ownership or control of the Van, the Van becomes inoperable and repairs do not make economic sense, as determined in the sole discretion of the Town Treasurer and Public Works Manager. The Town may terminate this Agreement upon ten (10) days’ written notice to WB if the Town determines that the Van is required for a Town use during those times that WB is granted the use of the Van hereunder.

9. WB agrees that it will not sublease the Van, nor assign this Agreement or any interest therein. WB shall not permit any other person or entity to operate or otherwise exercise control over the Van, except the NAS as expressly permitted herein.

10. WB shall comply with all applicable laws when operating and exercising control over the Van.

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11. WB is responsible for storage of the Van on the B&F parking lot and maintaining the security of the Van throughout the Term. If the Van is used by the NAS, the NAS will pick up the Van from WB and return the Van to WB. WB shall not be responsible for transporting the Van to any party other than the Town

12. All of the representations and obligations of the Parties are contained in this Agreement and no modification, waiver or amendment of this Agreement or of any of its conditions or provisions will be binding upon a Party unless in writing signed by such Party.

13. No waiver of any provision of this Agreement will be implied by any failure of either Party to enforce any remedy upon the violation of such provision, even if such violation is continued or repeated subsequently. No express waiver will affect any provision other than the one specified in such waiver, and that only for the time and in the manner specifically stated.

14. If any provision of this Agreement is declared void or unenforceable by a final judicial or administrative order, this Agreement will continue in full force and effect, except that the void or unenforceable provision will be deemed deleted and replaced with a provision as similar in terms to such void or unenforceable provision as may be possible and be valid and enforceable.

15. The individuals signing this Agreement on behalf of the Town and WB represent and warrant that they are empowered and duly authorized to bind the Town or WB, as the case may be, to this Agreement according to its terms.

16. This Agreement will be governed by and construed according to the laws of the state of Colorado and any legal action concerning the provisions hereof shall be brought in the district court for Boulder County, Colorado.

17. WB agrees to defend, indemnify and hold the Town, its governing body, individually and collectively, and the officers, agents and employees of the Town, free and harmless from and against all claims or demands arising from any act, omission or negligence of WB, its agents, servants, invitees, guests or employees, arising from any occurrence or accident causing, or allegedly causing, bodily injury (including personal injury or death) or property damage arising out of or in any way related to the use of the Van pursuant to this Agreement.

18. WB shall procure and maintain adequate insurance to insure against any and all losses and liabilities arising out of WB’s operation, use and control over the Van during the Term. WB will be solely legally and financially responsible for any damages incurred by the Town and by any other third party, including damage to the Van, during or as a result of its use by WB, and WB agrees to provide the Town with proof of third party insurance coverage for any such liability or property damage resulting from use of the Van.

19. Any information or notice required or permitted to be given by this Agreement shall be effective only if delivered to the Parties by personal delivery, United States Mail first class postage prepaid or by telecopy or electronic transmission, addressed to the Parties as set forth below. Notice and information shall be deemed effective on the third (3rd) business day following the date postmarked,

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if sent by mail, or on the date of delivery, if sent by personal delivery, telecopy or electronic transmission.

If to the Town: If to WB: Alisha Reis, Town Administrator Jill Dreves, Executive Director P.O. Box 396 PO BOX 3017 45 W. First Street 20 Lakeview Drive Unit 107 Nederland, Colorado 80466 Nederland, Colorado 80466 Facsimile: 303 258-1240 E-mail: alishar@nederlandco.org E-mail: jill@wildbear.org

20. Governmental Immunity. The Town, its officers, and its employees, are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations (presently one hundred fifty thousand dollars ($150,000) per person and six hundred thousand dollars ($600,000) per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to the Town and its officers or employees.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first set forth above. TOWN: TOWN OF NEDERLAND, COLORADO By:________________________________

Joe Gierlach, Mayor ATTEST: Michele Martin, Town Clerk

WB: The Wild Bear Center for Nature Discovery, d/b/a Wild Bear Science School By: Its: STATE OF COLORADO ) ) ss. COUNTY OF BOULDER )

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This Agreement was acknowledged before me this ___ day of ________________ , 2012, by_____________________ as _______________ of Wild Bear.

WITNESS my hand and official seal.

Notary Public

My commission expires: ______________________.

MEMORANDUM To: Nederland Board of Trustees From: Alisha Reis Date: May 15, 2013 Re: Administrator's Report

BUDGETING

As the Board is aware, the Town has been moving toward priority-based budgeting for some time. This year, we are poised to create a spending plan for 2014 based upon the Board’s highest priorities, in an effort to better advance initiatives in community infrastructure and public safety. We will begin this discussion with the Board’s budget goals session on June 11. Staff will present the current condition of various Town functions and assets, and work with the Board to help set the framework for budget drafting this year. In preparation for this, the Town Treasurer and I will be refreshing our knowledge on the model via training presented by Colorado Government Finance Officers Association.

CIRSA OFFERING NEW TRAINING COURSES ONLINE The Town’s insurer, CIRSA, is beginning to add many new training courses to its online training presence. Included among the 70-plus online courses are several new classes pertaining to safe driving and another on ethical decision-making (course description below).

Ethical Decision Making: This course covers what it takes to make ethical decisions on the job, including how to use organizational values as a personal guideline, how to dissect a tough ethics dilemma, and how ethical decision making can benefit you and your entity.

Please let me know if you are interested in taking this or other classes. All are free to CIRSA members. Thanks to everyone who was able to attend the recent training related to Board liability. Coming Up Monday, May 27 Memorial Day Holiday – Town offices closed Saturday, June 1 8 a.m. Firewise Town Clean-up (Fisherman’s Parking Lot) 7 a.m. Volunteer Training for Town Clean-up Wednesday, June 5 6 p.m. Comprehensive Plan Public Charrette (Open House) Tuesday, June 11 6 p.m. Board Work Session re: 2014 Budget Goals

* All events at the Community Center, unless otherwise noted.

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M EM ORANDUM

To: Board of Trustees From: Michele Mart in, Town Clerk Date: May 21, 2013 Re: Clerk’s Report Update on the Clerk’s Office dur ing the last month:

Licenses and Permits The Clerk’s office cont inues to process l iquor l icense renewals and special event permits. Special Event L iquor L icense not ices were posted for two upcoming events. With the addit ion of our new Deputy Clerk, business l icense renewals are now up-to-date, wi th only one outstanding. Elections The bal lot ini t iat ive pet i t ion that I signed on March 22 came back into my office with revisions. I reviewed, approved, and signed a new cer t i ficat ion on May 2. The proponents are now planning to col lect signatures. I at tended elect ions t raining in Ster l ing on Apr i l 26.

NedWEB The NedWEB program will finish this month. It has been a very popular program and has brought in some folks who have never been to Town Hall before. This program has certainly been a boost for PR. Everyone that has come in for a voucher has been extremely pleased with the program, and the businesses have been very supportive. A Post-Program Survey will be sent to businesses and residents by June 3, and a Progress Report is due to Boulder County by July 1.

• 319 vouchers have been distributed to-date, out of the 330 available for the whole program.

• 87 distributed vouchers still need to be redeemed; they are good for 60 days. • 92 vouchers have been redeemed at B&F; 38 at the Co-op.

M isc. Reappointments are coming up and there have been a few vacancies on advisory boards, so I put together an adver t isement to include them al l . I have received in qui te a few appl icat ions so far , one of which is before the Board tonight for SAB.

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I have also assisted on the Town clean-up flyer to obtain organizat ion supporters logos, create a volunteer schedule, and post . I have created a new group emai l l ist for the Visi tor Center to receive business nominat ions for monthly drawings to use the local highl ighted business spot . Building The Bui lding Department has been very busy lately in between snowstorms. We have issued two new resident ial home permits just in the last two weeks, and know of two more get t ing ready to be submit ted, for a total of five so far this year . Compared to the two issued in 2009, two in 2010, one in 2011, and two in 2012, this is a signi ficant jump and a sign that the economy is improving. We have answered many cal ls on the bui lding permit process, var ious fee quest ions, code enforcement complaints, and zoning and setback inquir ies. We have researched ut i l i ty plans for two major subdivisions in town to answer quest ions for real tors and proper ty owners on sewer and water main locat ions. The Town has been awarded 710 points for Bronze Level Solar Fr iendly Community cer t i ficat ion. They wil l be present at the Board’s June 4 meet ing to present a commemorat ive plaque and road sign. Planning & Zoning We have received a lot l ine dissolut ion applicat ion in for the Planning Commission. I have assisted in the research and clean-up of the Zoning Map for the Comprehensive Plan update. I have been in contact wi th two appl icants who had received SRU approvals last year from the Board to ensure their compl iance with the approved condit ions. Social M edia

• We current ly have 675 Facebook “l ikes” (up 23 from the last repor t ). • We have 856 Twit ter “fol lowers” (up 16 from the last repor t ). • Web stat ist ics for the per iod from Apr i l 15 to May 15 along with an arrow

indicator showing whether this is an increase or decrease from the last repor t (websi te t raffic, unl ike our social media t raffic, is highly seasonal):

• 7,095 visi ts; ↑364 • 17,667 page views (individual pages on the websi te); ↑1,237 • 2.49 pages per visi t on average; ↑0.05 • 45% bounce rate (this indicates visi tors who landed on our page and

immediately left ; our rate is fair ly low and decreases in our “off-season” as fewer people are bouncing to our page when searching for other related topics); ↓1.84%

• 4:06 minutes spent on the websi te on average; ↑1:13 minutes • 62.93% of visi ts are new visi ts; ↓2.59%

Treasurer’s Report Page 1

MEMORANDUM

To: Board of Trustees From: Eva Forberger, Treasurer Date: May 15, 2013 Re: Treasurer’s Report

Year to Date Financials – April 2013

General Fund: Revenue of $349,461 is higher than budget primarily due to higher grant revenue and motor vehicle taxes offset by the reduction in police tickets. Year to date, traffic tickets are below budget by $17,820. Motor vehicles taxes are up $11,514 and grant revenue is up $27,826 due to the timing of the GOCO grant and SIPA grant, which was not budgeted.

Expenses of $345,215 are less than budget by $1,006 primarily due to savings from employee turnover offset by higher legal fees and grant expenses. Year to date, legal fees are $6,224 higher than budget. Grant expenses are higher than budget due to the timing of the GOCO grant for the Parks and Rec Master Plan that carried over into 2013.

Community Center: Community Center operating revenues are less than budget by $2,067, or -6%. Operating expenses are also running less than budget by approximately 5%.

WATER: The Water Fund operating revenues are 4% less than budget due to service lines freezing and other adjustments made to accounts. Operating expenses are running 3% lower than budget primarily due to utilities (electric/gas) running lower than budget.

Treasurer’s Report Page 2

SEWER: The Sewer Fund operating revenues are 4% less than budget due to the line freezing issue and other adjustments made to accounts. Operating expenses are running 10% lower than budget primarily due to the timing of operational costs related to the startup of the new plant.

Wastewater Plant: To date, just over $4.2M has been spent on the new wastewater treatment plant. The total budget is just under $4.8M, which is roughly $100k less than the initial budget for the project put in place when we started with Frachetti’s design. It is anticipated that we will remain within the current budget.

Sales Tax: For the month of March 2013, sales tax was up 3.1% over 2012 primarily due to higher restaurant collections. Year to date, sales tax is break-even with prior year activity.

TOWN OF NEDERLAND2013 MONTHLY FINANCIAL REPORT

2012 2013

APRIL 2013 ACTUALS BUDGET var %YTD PRIOR

YEAR %FULL YEAR

BUDGET %

Preliminary and Unaudited 0.25%

GENERAL FUNDREVENUESSALES TAX 61,652 61,293 360 1% 61,786 100% 426,777 14%

PROPERTY TAX 144,800 147,730 (2,930) -2% 142,511 102% 362,802 40%USE TAX 5,506 5,506 0 0% 857 642% 15,000 37%OTHER TAXES AND FEES 74,639 63,019 11,620 18% 65,260 114% 172,810 43%PERMITS & LICENSES (non Building Related) 4,554 4,499 55 1% 5,723 80% 23,150 20%CHRGS FOR SRVCS including Building Permitting 12,273 12,273 0 0% 11,433 107% 38,500 32%FINES & FORFEITURES 8,795 26,615 (17,820) -67% 25,310 35% 76,700 11%GRANTS 30,826 3,000 27,826 928% 3,000 1028% 15,500 199%MISCELLANEOUS 6,417 6,417 0 0% 2,541 253% 25,600 25%LEASE PROCEEDS - - 77,808 TOTAL GEN'L FUND REVENUE 349,461 330,351 19,110 6% 396,229 88% 1,156,839 30%Total Revenue ex Grants and Leases 318,635 327,351 (8,716) -3% 315,420 101% 1,141,339

GL TRANSFER - - 0 - 1,000 0%GRANT EXPENSES 6,600 3,990 2,610 65% 29,137 23% 15,500 43%GENERAL GOVERNMENT 46,553 40,901 5,652 14% 42,254 110% 115,024 40%ADMIN/FINANCE 39,948 45,325 (5,377) -12% 50,472 79% 146,025 27%MUNICIPAL COURT 9,457 9,793 (336) -3% 9,465 100% 31,628 30%LAW ENFORCEMENT 130,363 132,842 (2,479) -2% 125,170 104% 447,656 29%PLANNING & ZONING 24,806 25,192 (386) -2% 16,367 152% 83,450 30%PUBLIC WORKS 87,488 88,177 (690) -1% 110,809 79% 316,554 28%LEASED EQUIPMENT - - 77,808 TOTAL GENERAL FUND EXPENSES 345,215 346,221 (1,006) 0% 461,483 75% 1,156,839 30%Total Expenses ex Grants and Leases 338,615 342,231 (3,616) -1% 354,538 96% 1,141,339

CHANGE IN FUND BALANCE 4,246 (15,869) 20,116 -127% (65,255) 0 FUND, BEGINNING BALANCE* 217,237 241,758

FUND, ENDING BALANCE* 257,234 241,758

* EXCLUDES $65,000 FOR TABOR RESERVES

COMMUNITY CENTEROPERATIONSOPERATIONS REVENUE Fitness Center 15,877 16,775 (898) -5% 15,765 101% 44,500 36% Rental Income 14,581 15,667 (1,086) -7% 11,966 122% 47,000 31% Other Income (i.e. special events) 250 333 (83) -25% 200 125% 1,000 25% Total Revenue 30,708 32,775 (2,067) -6% 27,931 110% 92,500 33%Operating Expenses Personnel 17,841 17,053 788 5% 15,434 116% 55,057 32% Professional Services/Building Maintenance 6,037 7,660 (1,623) -21% 6,271 96% 26,997 22% Utilities 10,455 10,960 (505) -5% 10,380 101% 27,527 38% Other Expenses 8,587 9,531 (944) -10% 11,115 77% 23,008 37% Total Expenses 42,921 45,204 (2,283) -5% 43,200 99% 132,589 32%

NET INCOME (12,213) (12,429) 217 -2% (15,269) 80% (40,089)

OTHER REVENUES AND EXPENDITURES

Sales Tax Receipts 23,120 23,051 69 0% 23,170 100% 160,500 14%Other Revenue - - 0 - - Community Center Foundation - - 0 - Total Other Revenue 23,120 23,051 0% 23,170 160,500

Other Expenses - - 0 3,825 0% 10,000 0%Debt Service - - 0 - 120,010 0%Total Other Expenses - - 3,825 0% 130,010 0%

CHANGE IN FUND BALANCE 10,907 10,621 286 4,076 (9,599) FUND, BEGINNING BALANCE - 9,599

FUND, ENDING BALANCE 9,949 0

Act vs. Bud2013 YEAR TO DATE (YTD)

NED 2013 Financials_04.xls/Summary - 3 - 5/16/2013

TOWN OF NEDERLAND2013 MONTHLY FINANCIAL REPORT

2012 2013

APRIL 2013 ACTUALS BUDGET var %YTD PRIOR

YEAR %FULL YEAR

BUDGET %

Preliminary and Unaudited 0.25%

Act vs. Bud2013 YEAR TO DATE (YTD)

WATEROPERATIONSOperating Revenues 91,280 95,382 (4,103) -4% 91,757 99% 355,033 26%Operating Expenses Personnel 38,145 38,798 (653) -2% 30,034 127% 124,820 31% Professional Services 25,566 25,967 (402) -2% 13,725 186% 89,000 29% Utilities 11,133 13,743 (2,609) -19% 12,094 92% 34,000 33% Operations 38,903 39,040 (137) 0% 26,365 148% 81,070 48% Depreciation - - 0 - 195,000 0% Total Expenses 113,747 117,547 (3,801) -3% 82,218 138% 523,890 22%

PROFIT /LOSS FROM OPERATIONS (22,467) (22,165) (302) 1% 9,538 -236% (168,857)

OTHER SOURCES OF CASHSales Tax 15,413 15,367 46 0% 15,446 100% 107,000 14%PIF Fees - - 0 - 10,428 0%Interest Income 4,019 4,900 (881) -18% 586 686% 20,000 20%Grant Revenue - - 0 - 10,000 0%TOTAL 19,432 20,267 0% 16,032 121% 147,428 13%

OTHER EXPENDITURESDebt Service 71,629 72,000 (371) -1% 72,574 99% 148,000 48%Capital Improvements Other - - 0 23,238 0% 112,000 0% Water Meters 11,532 11,532 0 0% 17,114 67% 60,000 19%Total Capital Improvements 11,532 11,532 0 0% 40,352 29% 172,000 7%

Debt Covenant (SB >1.1) 1.17

SEWEROPERATIONSOperating Revenues 105,710 110,043 (4,332) -4% 110,488 96% 406,276 26%Operating Expenses Personnel 36,876 38,690 (1,813) -5% 29,721 124% 124,604 30% Professional Services 9,747 9,747 1 0% 5,672 172% 84,600 12% Utilities 5,628 5,425 203 4% 4,153 136% 23,100 24% Operations 23,002 29,738 (6,736) -23% 16,483 140% 81,103 28% Depreciation - - 0 - 285,000 0%

Total Expenses 75,254 83,600 (8,346) -10% 56,029 134% 598,407 13%

PROFIT /LOSS FROM OPERATIONS 30,456 26,442 54,459 56% (192,131)

OTHER SOURCES OF CASHSales Tax 15,413 15,367 46 0% 15,446 100% 107,000 14%PIF Fees 180 180 0 0% 60 300% 10,428 2%Interest Income 201 200 1 0% 79 255% 600 33%Grant Revenue - - 0 - 420,000 0%TOTAL 15,794 15,747 15,585 101% 538,028 3%

OTHER EXPENDITURESDebt Service 110,031 60,031 50,000 83% 58,974 187% 220,200 50%Capital Improvements Other - - 0 23,238 0% 36,000 0% Wastewater Plant 782,835 782,835 0 0% 248,235 315% 1,105,131 71%

Debt Covenant (SB >1.1) 2.87

NED 2013 Financials_04.xls/Summary - 4 - 5/16/2013

MEMORANDUM

To: Nederland Board of Trustees From: Chief Jake Adler Date: 5/13/13 Re: Staff Report – Police Department The past month has been extremely busy for our department. We have responded to multiple unattended deaths, suicides, weapons and various drug and alcohol cases. While it is not uncommon to see a spike in service with the beginning of spring, this amount of larger scale activity is unusual and incredibly time consuming. Traffic enforcement has been steady; we will continue our focus patrols in problem areas when possible. With the onset of warmer weather, we are once again seeing a large influx of transients in and around Nederland. We encourage all residents to be vigilant and report any unusual or suspicious activity in their neighborhoods. We are also requesting that all business owners review their security measures and ensure locks and alarms are operating properly. Several “good-hearted” citizens have recently allowed transients to stay in or on their property and have become victims of various crimes. It is strongly encouraged to direct these transient parties to local law enforcement or fire departments if aid is needed. We recently completed the final evacuation/lock-down drills and training with both the Nederland Middle Senior High School and the elementary school. This was a collaborative effort between both the Nederland Police and Boulder County Sheriff’s Office in joint emergent response training evolutions. With schools getting ready to let out, we are starting to see our graffiti and curfew issues pick up again. I have initiated a public Crimestoppers reward program in hopes of more community involvement in apprehending and convicting those responsible for damage to our public areas. We encourage all parents to set firm

guidelines and rules with their children and know that curfew laws will be strictly enforced this summer. Nederland officers were recently involved in multiple stolen vehicle calls that were located in town these past weeks. In all cases the suspects were apprehended and vehicles were recovered. We are increasing our foot patrols in the Chipeta Park/skate park areas. Efforts have included an arrest of a wanted registered sex offender located in this area. Several other contacts have noted other suspicious activity/individuals. We will continue our efforts in this area throughout the summer. As the ground begins to thaw and with the increased moisture, there have been several reported rock slides on our roads and highways. We encourage all drivers to be cautious when traveling, especially in the Boulder Canyon areas.

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M EM ORANDUM To: Neder land Board of Trustees From: Jason Morr ison Date: May 14, 2013 Re: Staff Repor t -- Publ ic Works

Wastewater Treatment Plant

The new sewer plant is online and requiring a lot of staff time. The inflow of surface and ground water has added quite a load on the plant. Currently, we are running at about 90% of treatment capacity, though that is slowly receding. We are draining the south lagoon this week to install a line for decanting. The sludge removal contractor is finishing pumping out

the north lagoon, in preparation for fill and contouring. (Left) A worker from the sludge removal company pumps waste from the north lagoon, in preparation for decommissioning. Streets and Drainage

The Public Works Department is recruiting for an experienced streets and machinery operator, with the application deadline occurring May 10. It is anticipated that the position will be filled this month. Additionally, one of the snow

removal contractors for the sidewalks will be moving to the part-time seasonal maintenance position. Rob Vigil will work through the summer season to maintain parks, trails and other Town facilities. Vigil has an extensive background in facilities maintenance.

The Town has received 700 of our 1,000 tons of road base and have begun to spread it in a couple of parts of town, with the intention of covering as much of town as possible. With asphalt plants now open, we will begin hauling hot mix and starting asphalt repairs. The last few snow storms were rough on our equipment, sidelining two trucks in one storm. One was a catastrophic failure and the other was more of an inconvenience than anything else. We will salvage as much as we can off the truck we lost and sell what we can. A proper pre-trip inspection was done prior to driving the lost truck, and afterwards, we could still measure oil on the dipstick. After speaking with a few diesel mechanics and having them look over the

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truck, all advised against putting in a new motor. We had budgeted for a new dump/sand truck for 2015, so we will plan to bump up the replacement by one year. We will be looking at an all-wheel drive dump truck with a motor that can handle the severe driving conditions we have.

Parks

The Chipeta Park pavilion was hit again this month by graffiti. We turned the pictures over to the Police and we will spend another day painting over the tag. The area is now under video surveillance, given the frequency of graffiti incidents that we have seen in the past two years at the site. This year, we will try something a little different with the bathrooms at the park. We will experiment by only opening one side at a time and keeping the other locked in case we get vandalized again. Then, we can lock the damaged bathroom and open the other, hoping no damage occurs before we get things repaired. The hope is that this will reduce the time the restrooms are closed overall this year.

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M EM ORANDUM

To: Board of Trustees

From: Dawn Baumhover

Community Center Coordinator Date: 5/16/13 Re: Staff Report

May is the month of cont rast at the Community Center . I t begins with a ful l schedule and typical ly ends on a calm note, as classes and act ivi t ies wind down for the summer. Cer tain offer ings are ongoing throughout the summer and two inst ructors wi l l offer shor t sessions in June/ July. This is a fi rst and indicates the steady increase in par t icipat ion and usership of the recreat ional component of the Community Center .

9Health Fair was well -staffed and wel l -at tended. After five years, this was my last as an act ive par t of the Si te Team. Local resident Janet te Taylor got her feet wet as Si te Coordinator this year as she learned the ropes and the staff from 9Health. She wi l l assume ful l responsibi l i ty next year with the support of a seasoned Site Team. Changes in layout and flow worked wel l this year and the team cont inues to brainstorm ways to improve the Fair . I t has been a pr ivi lege to serve the community by restor ing this great event to the Community Center .

Fi tness Center usage remains st rong and as you are aware, Tuesday night basketbal l has exploded. We are working on several solut ions to quel l the noise and avoid disrupt ions dur ing meet ings. I t is going to take some experimentat ion to find the best solut ion. The players feel ter r ible when the door is hi t and we al l apologize. We’re asking for your forgiveness and pat ience – i t is never intent ional. We wi l l figure i t out .

Several di fferent budgeted projects for the Community Center are planned for the slower months of June and July. The gym and theater wi l l be get t ing needed facel i fts. The bui lding has weathered the snow melt wel l , with minimal ground water issues and the west wing roof remained t ight . There was a small issue with the heat ing system that was easi ly resolved with minimal expense.

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The Fi tness Place has had the opportuni ty to donate Punch Cards in support of several events recent ly. The After Prom, L ions Club for Senior Awards Night and Aspen Grove Preschool for the Tur t le Float were al l recipients. These donat ions are excel lent opportuni t ies for visibi l i ty in the community with diverse groups, a win-win for us al l .

The Community Center / Fi tness Place wil l run l imited hours on Saturday and Sunday of the Memor ial Day weekend. Due to histor ical ly low usage on those days, we wil l be open 10a.m. to 2 p.m. only and closed on Monday for the Memor ial Day hol iday.

http://nederlandco.org

TOWN OF NEDERLANDOFFICE OF THE MAYOR

“Nederland is just a little bit cooler ... on multiple levels”

P.O. Box 39645 West First Street

Nederland, CO 80466(303) 258-3266

http://nedermayor.blogspot.com

Top 5 Ned Energy Bright Ideas

NederMayor Blog – May 23, 2013By Mayor Joe Gierlach

I'd like to highlight the relationship between the top five bright ideas for our community.

1. The Solar Friendly Communities initiative:Through a grant from the U.S. Department of Energy's SunShot initiative (seeking to bring solar PV systems to be price competitive without subsidies) the Solar Friendly Communities initiative, aims to encourage the expansion of solar energy by reducing "soft" costs - including permitting, installation, regulatory and other related costs.

Soft Costs can account for up to 40 percent of a rooftop solar PV system, or about $2,500 to the cost of each residential system. Yet, solar energy systems are rapidly dropping in cost and thus becoming increasingly appealing to a broad range of citizens.

On our June 4th Board of Trustees meeting, I will be accepting a Solar Friendly Communities award on behalf of the Town for reaching the bronze level in their program.

2. Our Envision Nederland 2020 vision statements:Envision 2020 is woven with many sustainability measures to reflect our community's unwavering commitment to the environment. Combining the Solar Friendly Community initiative, with our vision for a Nederland local economy, provides our community with the opportunity to realize that vision.

In 2020, Nederland’s economy is local, community based, self-sufficient and is characterized by diverse and essential products, services and jobs that both support the local community and are mindful of potential impacts on the environment.

In 2020, Nederland supports its local businesses and works to attract new businesses that enhance local services while supporting local values, qualities and the 2020 vision.

Solar permits are easy on the Building & Construction page of our town's website, thanks to Town Administrator Alisha Reis, Town Clerk Michele Martin, and Eric Pendley from SafeBuilt.

By becoming a Solar Friendly Community, Nederland has reduced soft costs for homeowners. It is easier for local contractors to obtain permits, install solar PV systems, and have them inspected. This also allows homeowners to begin soaking up the benefits sooner.

3. Boulder County's EnergySmart Program:I attended the Colorado Energy Efficiency Summit at the National Renewable Energy Lab (NREL) in Golden. The facility itself, is an example of one of the most energy efficient office buildings in the U.S.. One of the presenters, was Jeremy Epstein who explained Boulder County's EnergySmart Program. EnergySmart can help our Nederland community to increase the energy efficiency and comfort in our homes and businesses with assistance from EnergySmart Advisors, incentives and financing. They have set aside nearly $8 million to create a finance program to improve the energy efficiency of existing buildings and stimulate local economic growth.

Elevations Energy Loans, provided in conjunction with the EnergySmart program, offer financing for energy efficiency and renewable energy upgrades for homes and businesses in Boulder County and City & County of Denver (sorry, no Gilpin County). They can be used for a wide range of upgrades, including: insulation, air sealing, heating, cooling, water heating, windows/doors, roofing, solar/renewable energy, appliances, lighting and energy

management. In order to qualify for Solar PV and other renewables under this loan, borrowers must achieve 15% energy efficiency improvement to the property.

In addition to Elevations loan officers, loan applications are reviewed by the EnergySmart staff to ensure they meet eligible measures. With a two hour turnaround time on residential loan applications, you can have access to financing by lunchtime with low-cost Energy Loans from Elevations Credit Union. All applicants are required to sign-up for the EnergySmart program and are encouraged to utilize the services of the program Energy Advisors. These programs offer FREE energy advising in order to find the most beneficial energy saving actions for each participant. Advisors can also help participants locate contractors, compare bids, and take advantage of available rebates and incentives.

Energy Loans offer terms of 36, 60, 84 or 120 months. Energy Loans are offered at fixed interest rates, starting as low as 2.75%. Homeowners can apply for a minimum loan of $500. Business loans start at $1,000 and go up from there. A $25 membership fee is applied.

4. Celebrating Energy Independence Day on the 4th of July:As previously mentioned in the NederMayor blog, we are moving along with preparations for Energy Independence Day on the 4th of July. This community-wide event supports all three legs of the stool; Environmental, Economic, and Social Sustainability. It's a celebration of what we are doing as a community to move closer to our 2020 vision. Contact Amanda MacDonald (FDGD Event Coordinator) for more details, or if you would like to participate.

5. Our Nederland Community:As I met with Boulder County staff, Energy Efficiency Specialist, Lea Yancey, mentioned that there are 44 homes and 37 businesses in Nederland who are participating in the EnergySmart service. We'd like to see Nederland have a high participation rate, so I'm encouraging residents in our area to continue to call EnergySmart at (303) 544-1000 (for homes) or (303) 441-1300 (for businesses) or visit their website for more information.

Trustee Report

To: Board of Trustees

From: Trustee Randy Lee

Date: May 17, 2013

PROSAB: The past month can be summed up in a word: meetings, and lots of them:

PROSAB met on April 18th and May 16th. At the April meeting, members of the NedPeds project

team presented the 60% design plans which were discussed and feedback and suggestions

given. PROSAB also discussed the upcoming public meeting for the trails master plan update.

Topics discussed at the May meeting included a naming process for the gateway park,

revitalization of the Adopt-a-Park program and a review of the amphitheater proposal. The

next regular PROSAB meeting will be June 20th.

PROSAB hosted a Saws and Slaws mountain community outreach meeting on April 30th with

attendees from Bar K, Gold Hill and Ward.

The public input meeting for the trails master plan on May 8th was sparsely attended, probably

due to inclement weather, but saw good discussions with useful feedback. PROSAB will seek

feedback through a broader audience via an online questionnaire soon. Boulder County’s Firewise Landscaping workshop, cosponsored by PROSAB and the Town, was

held May 11th with over 40 people in attendance.

Interest in the Saws and Slaws model is picking up, both within town and the surround region. Boulder

County is aggressively promoting it. Nederland Saws and Slaws 2013 schedule:

May 25th: Chainsaw Class

May 26th: Nederland Town water treatment plant (cutting trees only)

June 8th: St Anton's Emergency Egress Thinning Event

June 29th: Big Springs Event #1

July 20th: Big Springs Event #2

Aug 24th: Big Springs Event #3

Sept 22nd: Open

PROSAB currently has one vacancy and two terms expiring at the end of May. Two applications have

been received, but not discussed by the board, as neither applicant (one new and one current

member) could attend the May meeting.

IMA: The Intermountain Alliance met in Nederland on April 24th. The focus of the meeting was upon

the status of community emergency preparedness and planning. Cheryl Hogan and John Miller of the

American Red Cross were in attendance and discussed RC emergency shelter policies and options for

working with communities to provide emergency shelter in a way that meets the needs of each

community. The next IMA meeting will be May 22nd at 10:00 am in Allenspark.

Big Springs Emergency Egress: The next step is an onsite evaluation by Boulder County of the

proposed route, expected to take place in June.

Town of Nederland

Firewise® Community Action Plan

2013

2013 Firewise Community goals and how they can be met

Elevated community understanding of clearing home ignition zone/defensible space

needs

1. Looping presentation for Community Center lobby TV

2. NFPD 5-minute movie night presentation at Backdoor Theater, perhaps to

coincide with Fire Auxiliary spaghetti dinner and fire-themed movie

3. Updated and improved material on Town website, including weekly forest health

tip

4. Monthly forest health tip in local media

5. US Forest Service “Do you have defensible space” signs installed (à la Wondervu)

6. Install NFPA display in Community Center

Increased utilization of the Nederland Sort Yard

1. Primary avenue of increasing sort yard usage will be through increasing fuels

reduction activity

Rake and Remove campaign: clearing of combustible material from home ignition zones

1. Fund dedicated rollaway dumpster for Firewise Town Cleanup

2. Incorporate composting in Firewise Landscaping Workshop

3. Set up composting display in Community Center (following NFPA display removal)

Rebrand annual Nederland Town Cleanup as a Firewise Town Cleanup

1. Include defensible space checklist in event flyers

Nurture Nederland Saws & Slaws program

o More S&S events in Nederland

o Help facilitate independent S&S activity in surrounding communities

1. 6 S&S events are tentatively scheduled for this season

2. S&S Mountain Community Outreach meeting is scheduled for April 30

3. Town and County are supporting S&S with money for chipping

o Conduct sawyer training

Make progress in mitigation of Town-owned property

1. Complete management plans for Wingate and Big Springs Park open space in

preparation for 2014 fuels reduction work

Promote and facilitate appropriate house and street numbering/signage

1. New street signs scheduled for installation this year

2. Define standard for Nederland Firewise house numbering

3. Partner with local business to stock and promote appropriate house numbers

Firewise Events

1. April 30 Saws & Slaws informational meeting for interested communities

2. May 11 Firewise Landscaping Workshop at Nederland Community Center

3. May 25 Nederland S&S sawyer training event

4. May 26 Nederland S&S event: Water treatment plant

5. June 1 Nederland Firewise Community Cleanup

6. June 29 Nederland S&S neighborhood event: Big Springs

7. July 20 Nederland S&S neighborhood event: Big Springs

8. August 24 Nederland S&S neighborhood event: Big Springs

9. September 22 Nederland S&S neighborhood event

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Firewise USA Communities: The Firewise action committee has approved a 2013 action plan (included

with this report). We will be ready to submit an application to the Firewise Communities/USA®

Recognition Program immediately after the conclusion of the Nederland Firewise Town Cleanup on

June 1st. Residents should be encouraged to focus cleanup efforts on removal of flammable material

from porches, decks and an area at least 5’ around their home and outbuildings (see the accompanying

tip sheet). Town residents should keep track of their time spent in Firewise cleanup activity for this

event, as the value of this in-kind work counts towards the Town’s Firewise Communities USA®

obligation of spending $2 per resident on mitigation activities.

Economic Development Task Force: Recruitment underway.

Town of Nederland

2013

Firewise® Town Cleanup Homeowner Tip Sheet

Firewise Cleanup Task Tips

Clear leaves, pine needles and other debris from gutters, eaves, porches and decks. This prevents embers from igniting your home.

Compost this material in your backyard, deliver to the Waste Transfer Station (in paper lawn bags pre-purchased from the Town only) or take to Western Disposal in Boulder (details

on back). Recheck regularly.

Rake and Remove dead vegetation and pine needles from under your deck and within 5 feet of all structures.

Create a non-combustible “vegetation free”

perimeter around all structures. Your home is especially vulnerable to ember ignition at the junction where your walls meet the ground and decks.

Remove flammable debris and any other flammable items (patio furniture, etc.) stored on or underneath decks or porches

Put extra effort into moving winter firewood piles off of decks and store them 30 ft. or more from all structures.

Screen or box-in areas below patios and decks with 1/8 inch wire mesh or solid nonflammable material to prevent debris and combustible materials from accumulating.

Don’t use nylon screening, as embers will burn

right through it.

Move firewood piles, scrap lumber and other flammable debris at least 30 ft. from all structures, including garages and sheds. If it can catch fire, don’t let it touch your house,

deck or porch.

Locate firewood and propane tanks at the same elevation as your house or higher. Haul your flammable junk off-site to the free Firewise Town Clean up dumpsters.

Wildfire can spread to tree tops. If you have

conifer trees on your property, prune so the lowest branches are 6 to 10 feet from the ground or 1/3 the height of the tree, whichever is less.

Vary the height of pruning to avoid a “popsicle

forest” look. Haul slash to Nederland sort yard or create a hugelkultur bed.

Mow grass and weeds to a height of 6 inches or less within 30 ft. of all structures. Compost lawn clippings.

You don’t have to live in the middle of the forest to be vulnerable to wildfire; ember storms can carry the fire

far ahead of the fire front. Be Firewise and clear your home ignition zone of flammable material, even if your home is in the middle of town.

Nederland Area Sort Yard

Spring hours: Tuesday thru Saturday from 9 a.m. to 5 p.m. May 3 thru July 6. (closed July 4th)

Fall Hours: Friday and Saturday only from 9 a.m. to 5 p.m. Sept. 20 thru Oct. 12. (dates are tentative)

Location: 291 Ridge Road, Nederland (north of the Town of Nederland, east of Hwy. 72)

Materials Accepted

Slash (tree limbs and branches) Any size logs with no diameter limit

For more details visit: www.BoulderCounty.org/ForestHealth

Limited Time Acceptance of Pine Needles

As part of the Nederland Firewise Town Cleanup, the Town is providing one rollaway dumpster for disposal of clean pine needles, dry grass and leaves (i.e. forest floor duff). The dumpster will be located at the Firewise Town Cleanup site. The following conditions apply:

These materials will only be accepted if brought in marked paper lawn bags purchased from the Town (sold at cost at Town Hall).

Limit of five 30 gallon bags per resident Once the dumpster is full, no more material will be accepted (material can

be taken to Western Disposal, 5880 Butte Mill Road in Boulder, for composting; there is a modest fee)

For more information about preparing your home for wildfire

Colorado State Forest Service: http://csfs.colostate.edu/index.shtml

Boulder County: https://www.BoulderCounty.org/WildfireMitigation

Firewise Communities: http://www.firewise.org/

Town of Nederland: http://nederlandco.org/forest-health/

Saws and Slaws: http://sawsandslaws.com/

Hugelkultur: http://www.richsoil.com/hugelkultur/

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NEDERLAND TOWN BOARD OF TRUSTEES 2012-2014 Goals Action Objectives Repor t Repor t #2013-6: M ay 15, 2013 Black text: ongoing tasks Bold i ta l icized text: updates

GOAL 2013 ACTION OBJECTIVES

EST. COMP. DATE

COMMENTS

Infrastructure Maintain and improve current infrastructure to meet community needs now and into the future.

• Draft a Master Infrastructure Plan with emphasis on streets, drainage planning

• Complete Source Water Protection Plan

• Complete construction of WWTP

• Develop a plan for disposal of treated sludge from the new plant, including dewatering and composting ideas.

• Increase green infrastructure and begin meeting MS4 (Municipal Separate Storm Sewer Systems) standards on a voluntary basis.

Q3 2013 Q2 2013 Q2 2013 2013-2014 Ongoing

• RFP scheduled for issuance mid-May; funding request placed with Boulder County to support sustainability coordinator for MIP, Comp Plan coordination

• First stakeholder meeting to be held in Summer; funding awarded

• Lagoon draining, decommissioning completing; final grading/landscaping under review for completion in June

• Staff gathering info regarding all types of sludge disposal for further analysis of all options

• Concept part of NedPed project, as part of model for Town projects/construction specifications; also included in Master Infrastructure Plan RFP

Resident Safety and Well-being Provide for quality public safety services and outreach to promote the health, safety and well-being of all residents and visitors.

• Develop a forest health program, including wildfire mitigation efforts on Town property and support for private property mitigation.

• Secure a second bridge across Middle Boulder Creek to support emergency efforts.

• Secure a second egress from the Big

Ongoing Ongoing Ongoing

• Town staff working with Saws & Slaws group, Nederland Fire District to mitigate land around water treatment plant in summer 2013; Saws & Slaws reaching out to local property owners for several neighborhood mitigation events; June 1 Town Clean-up including focus on defensible space

• Discussion part of updates of Parks/Rec/Open Space/Trails Master Plan and Town Comprehensive Plan

• Discussions ongoing with Boulder County,

Forest Service officials

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Springs neighborhood in case of evacuation.

• Support the realization of the Community Wildfire Protection Plan (CWPP) in partnership with the Nederland Fire Protection District.

• Develop an integrated emergency response and preparation program/outreach.

• Replace all street signs with metal reflective signs (part of CWPP).

• Support code enforcement as a Town priority, specifically dog-related codes, speeding, and sound nuisances.

• Complete the update of the Town’s Comprehensive Plan.

Ongoing 2013 Ongoing Ongoing Q1 2013

• Budgeting includes CIP projects identified in

the plan (e.g. metal reflective street signs) and mitigation in high-risk areas (e.g. WTP mitigation); US Forest Service issued closure order in January regarding shooting at the Magnolia Road informal shooting area

• Part of staff goals for 2013, including plan for

resident awareness of web materials • Part of CIP for 2013 • New software includes code enf. module, to

streamline code enforcement action and follow-up; multi-departmental project to enforce requirement to upgrade to remote-reading water meters underway to upgrade last 150 properties remaining

• Final review draft to be produced in time for public review, NPP in June; public meeting to unveil the plan update on June 5

Sustainability Enact policies that encourage the consideration of the long-term economic, social and environmental impacts of all services and initiatives undertaken by the Town.

• Support further creation of affordable housing in the community.

• Support Boulder County Zero Waste Plan goals in Nederland.

• Develop an economic

development program in partnership with the business community.

• Develop a Sustainability Action Plan.

Ongoing Ongoing 2013 2013

• Mayor’s Task Force on Housing/Human Services working on concept; BOT heard housing presentation from Boulder County on March 5; issue also addressed in Housing element of the Comprehensive Plan

• Installed bear-proof trash/recycling containers in late 2012 – tracking waste diversion to recycling via data collection; to include additional bins in 2014 budget discussions

• Resolution to re-enact the Mayor’s Task Force

on Economic Development adopted at the Board on Dec. 18, 2012

• SAB partnered with Boulder County/Lyons on

funding request to USDA for sustainability technical help, inc. for this plan; funding request submitted to Boulder County for support of sustainability coordinator to further the plan

Recreation and • Complete a plan for a gateway park west of

Q1 2013

• Part of the ongoing Parks/Rec/Open Space/Trails Master Plan update; Plan adopted

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Culture Enhance the quality of life of residents and visitors through the provision of quality recreational and cultural amenities.

Barker Reservoir. • Complete the update

of the Parks/ Recreation/Open Space and Trails Master Plan.

• Complete an update of the Nederland Trails Master Plan.

• Encourage the development of venues and partnerships for music, art, ideas and knowledge.

• Encourage creation of a boating program at Barker Reservoir

• Maintenance of existing trails

Q1 2013 2013 Ongoing Ongoing Ongoing

by BOT on Feb. 19 • Plan adopted by BOT on Feb. 19; posted to the

Town’s Web site at: http://nederlandco.org/prosab-documents/

• PROSAB identified as a work goal for 2013 • Part of Parks/Rec/Open Space/Trails Master

Plan, as well as ongoing discussions at the BOT; BOT discussing potential performance space at old north sewage lagoon west of Barker Reservoir

• Resolution to support program approved at Board in fall 2012; Town presented resolution and discussed subject at Boulder City Council in Jan. 2013; Council remanded issue to City subcommittee for review

• Coordinated effort between Town staff, PROSAB, and Community Volunteers

TOWN OF NEDERLAND, COLORADO

BASIC FINANCIAL STATEMENTS

December 31, 2012

TABLE OF CONTENTS PAGE INTRODUCTORY SECTION

Title Page

Table of Contents FINANCIAL SECTION Independent Auditors’ Report Management’s Discussion and Analysis i - x Basic Financial Statements Government - Wide Financial Statements

Statement of Net Position 1

Statement of Activities 2 Fund Financial Statements

Balance Sheet - Governmental Funds 3

Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds 4

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5

Statement of Net Position - Proprietary Fund Type 6

Statement of Revenues, Expenses and Changes in Net Position -

Proprietary Fund Type 7

Statement of Cash Flows - Proprietary Fund Type 8 Notes to Financial Statements 9 – 24

TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Continued)

Required Supplementary Information

General Fund - Budgetary Comparison Schedule 25 Community Center Fund - Budgetary Comparison Schedule 26 Combining and Individual Fund Schedules

Combining Balance Sheet – Nonmajor Governmental Funds 27 Combining Statement of Revenues, Expenditures and Changes In Fund Balances – Nonmajor Governmental Funds 28 Conservation Trust Fund – Budgetary Comparison Schedule 29 Downtown Development Authority – Budgetary Comparison Schedule 30 Sewer Fund - Budgetary Comparison Schedule 31 Water Fund - Budgetary Comparison Schedule 32

COMPLIANCE SECTION

Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards 33 - 34

Report On Compliance For Each Major Federal Program, Report On Internal Control Over Compliance As Required By OMB Circular A-133 35 - 36 Schedule of Findings and Questioned Costs 37

Schedule of Expenditures of Federal Awards 38 STATE COMPLIANCE

Local Highway Finance Report 39 – 40

FINANCIAL SECTION

600 17TH STREET SUITE 2800 SOUTH • DENVER, COLORADO 80202 •TEL 303.634.2259 •FAX 303.496.4631

Honorable Mayor and Members of the Board of Trustees Town of Nederland Nederland, Colorado INDEPENDENT AUDITORS’ REPORT Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Nederland, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Nederland, as of December 31, 2012, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and required supplementary information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The combining and individual fund financial statements, and the schedule of expenditures of federal awards, as required by the Office of Management and Budget Circular A-133, audits of States, Local Governments, and Non-Profit Organizations (Circular A-133) listed in the table of contents are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combing statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2013 on our consideration of the Town of Nederland’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town of Nederland’s internal control over financial reporting and compliance.

May 15, 2013

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Town of Nederland, Colorado Management’s Discussion and Analysis Fiscal Year Ending December 31, 2012

This Management’s Discussion and Analysis (MD&A) of the Town of Nederland’s 2012 financial statements is offered to provide an objective and easy-to-read analysis of the government’s financial activities based on currently known facts, decisions and conditions. The MD&A should be read in conjunction with the Town’s basic financial statements. The Town of Nederland is a Statutory Municipality incorporated in 1874. The Town has seven elected officials who are responsible for all policy decisions that affect the government’s financial condition. The appointed Town Administrator is responsible for preparing the annual budget which is adopted by the Board of Trustees every December. The Town Administrator and appointed Town Treasurer are responsible for financial reporting to the Town’s Board of Trustees and to the public at large. The Town maintains four separate funds, which are as follows: A) General Fund B) Community Center Fund C) Water Fund D) Sewer Fund Additionally, the Town maintains a Downtown Development Authority (DDA) Fund which acts as a component unit and is reflected as a non major fund in Town’s financial statements. Overview of the Financial Statements There are two sets of financial statements included in this report: government-wide financial statements, and fund financial statements. A description of these different statements is provided below. In addition to the financial statements, supplementary information in the form of budgetary comparison schedules is also provided near the end of the audit report. Government-wide Financial Statements: The government-wide financial statements, which consist of the Statement of Net Assets and the Statement of Activities, give readers a broad overview of the entire Town’s financial position and changes in financial position in a manner similar to a private-sector business. These statements report information about the Town as a whole and include all assets and liabilities using the accrual basis of accounting, which reports all of the current year’s revenues and expenses regardless of when the cash is received or paid.

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The statement of net assets presents the Town of Nederland’s assets and liabilities, with the difference between the two reported as net assets. The net assets are summarized as follows: 1) invested in capital assets, 2) unrestricted or available for any current use, 3) restricted for specific use only. Over a period of time increases or decreases in the Town’s net assets may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. Other non-financial factors, however, such as changes in the Town’s property tax base, are needed to assess the overall financial condition of the Town. The statement of activities presents data showing how the Town’s net assets changed as a result of the operations of the Town government during the most recent fiscal year. All changes in net assets are reported when an event occurs that requires a revenue or expense to be recognized, regardless of when the related cash is received or disbursed (accrual basis of accounting). Thus, some revenues and expenses reported in this statement will result in cash flows in future periods. The government-wide financial statements distinguish the different functions of the Town that are principally supported by taxes and intergovernmental revenues (Governmental Activities) from the other functions that are intended to recover all or a significant portion of their costs through user fees or charges for services (Business Type Activities). The Governmental Activities of the Town of Nederland include general government, administration and finance, municipal court, public safety, public works, and parks and recreation. The Business Type Activities include water and wastewater. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town’s funds can be divided into two categories: Governmental Fund and Proprietary Fund. Governmental Funds - The activity of the Town’s General, Community Center, Downtown Development Authority, and Special Revenue (Conservation Trust) funds are reported as governmental funds, which are essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the short-term flow of money into and out of these funds. These statements use the modified accrual accounting method, which measures cash and all other financial assets that can readily be converted into cash. The governmental fund statements provide a detailed view of the Town’s general governmental and special revenue operations and the services that are provided. Governmental fund statements help to determine the financial resources that are available to finance the Town’s operations and programs in the near future. Proprietary (Business Like) Fund - The Town of Nederland maintains two proprietary (enterprise) funds, which reports the same functions as the business-type activities in the government-wide financial statements. The Town uses the proprietary funds to account for the activities associated with its water and sewer utilities that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the costs, including depreciation, of providing goods or services to the public be financed or recovered primarily through user fees or charges.

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Financial Highlights Governmental Activities

• As of December 31, 2012 the governmental funds held $480,709 in assets that were readily convertible to cash and $110,595 in current liabilities.

• As of December 31, 2012 the Town’s governmental activities fund held $4,166,400 in depreciated capital assets, a 4.10% decrease; and $1,130,143 in capital asset liabilities, a 22% decrease.

• 2012 Nederland sales tax revenue was up 6.1% compared to fiscal year 2011.

• 2012 general property tax revenue increased by 3% compared to fiscal year 2011.

• 2012 building permit revenue decreased by 32% or $9,741 compared to fiscal year 2011. 2012 use tax revenue decreased by 47% or $12,262 compared to fiscal year 2011.

• 2012 salary and benefits expense increased by 1.2% or $8,175 compared to fiscal year 2011.

• Total governmental activities net assets decreased by 0.4% or $17,817 during the 2012 fiscal year.

Business-type Activities

• As of December 31, 2012 total assets were $10,394,293, an increase of $605,077. Cash,

investments and receivables decreased by $33,438 while restricted cash decreased by $2,638,815 as the Town drew down on its loan from the Colorado Water Resources & Power Development Authority to construct the Town’s new wastewater treatment plant. Capital assets increased by $2,937,238.

• Total enterprise liabilities increased by .6% or $36,462 during 2012.

• 2012 service revenue from the water and wastewater services increased by $20,127 or 2.77% compared to fiscal year 2011 due to inflationary increases in user rates for water and sewer.

• 2012 Total Revenues from the water and wastewater increased $307,970 or 28.8% compared to fiscal year 2011 primarily due to capital grants received for the construction of the wastewater treatment plant.

• 2012 Total Expenses from the water and wastewater increased $78,422 or 10.7% compared to fiscal year 2011 primarily due to increased costs for maintenance and operator expense due to changes in personnel.

• 2012 salary and benefits expense increased by 3.1% or $6,194 compared to fiscal year 2011.

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Statement of Net Assets

The following table reflects the condensed Statement of Net Assets compared to the prior fiscal year.

Government Activities

Business Type Activities Total

2012 2011 2012 2011 2012 2011

Current and other assets $858,204 $1,207,043 $3,136,036 $5,468,197 $3,994,240 $6,675,240

Capital assets $4,905,169 $5,037,527 $7,258,257 $4,321,019 $12,163,426 $9,358,546

Total assets $5,763,373 $6,244,570 $10,394,293 $9,789,216 $16,157,666 $16,033,786 Long-term debt outstanding $1,033,407 $1,323,361 $5,766,212 $6,037,886 $6,799,619 $7,361,247

Other liabilities $724,185 $897,611 $700,249 $392,113 $1,424,434 $1,289,724

Total liabilities $1,757,592 $2,220,972 $6,466,461 $6,429,999 $8,224,053 $8,650,971

Net assets:

Invested in capital assets,

net of related debt $3,775,024 $3,577,104 $1,518,008 $(1,667,917) $5,293,032 $1,909,187

Restricted $191,036 $137,335 $- $- $191,036 $137,335

Unrestricted $39,721 $309,159 $2,409,824 $5,027,134 $2,449,545 $5,336,293

Total net assets $4,005,781 $4,023,598 $3,927,832 $3,359,217 $7,933,613 $7,382,815

Normal Impacts

There are six basic (normal) transactions that will affect the comparability of the Statement of Net Assets summary presentation: Net Results of Activities – will impact (increase/decrease) current assets and unrestricted net assets. Borrowing for Capital – will increase current assets and long-term debt. Spending Borrowed Proceeds on New Capital – will reduce current assets and increase capital assets. A second impact results in an increase in capital assets and an increase in related net debt which will not change the invested in capital assets, net of related debt. Spending of Non-borrowed Current Assets on New Capital – will (1) reduce current assets and increase capital assets and (2) will reduce restricted and or unrestricted net assets and increase invested in capital assets, net of debt. Principal Payment on Debt – will (1) reduce current assets and reduce long-term debt and (2) reduce unrestricted net assets and increase invested in capital assets, net of debt. Reduction of Capital Assets Through Depreciation – will reduce capital assets and invested in capital assets, net of debt.

The Town’s total net assets for fiscal year 2012 increased by 7.5% or $550,798. The Town’s assets exceed liabilities by $7,933,613 (net assets) as of December 31, 2012. Funds invested in Capital assets (e.g. land, buildings, equipment, etc.) make up 67% of net assets. The Town uses these capital assets to provide services to citizens; therefore these assets are not available for future spending. Although the Town of Nederland’s investments in capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to retire these liabilities. The restricted portion (2.4%) of net assets represents resources that are subject to various debt provisions, contracts and agreements on how they may be used. The remaining balance $2,449,545 is unrestricted and can be used to meet the Town’s ongoing obligations to its citizens and creditors, although it should be noted that $1.4M of these funds will be used for the construction of the wastewater plant.

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STATEMENT OF ACTIVITIES The Statement of Activities takes into consideration the Town as a whole and reflects the change in net assets for fiscal year 2012.

Government Activities Business Type

Activities Total 2012 2011 2012 2011 2012 2011

Program Revenue Charges for Services

$238,813 $224,841 $747,671 $727,544 $986,484 $952,385 Operating Grants & Contributions

$73,042 $100,458 $73,042 $100,458 Capital Grants & Contributions

$48,484 $48,786 $408,302 $135,283 $456,786 $184,069

Total Program Revenue $360,339 $374,085 $1,155,973 $862,827 $1,516,312 $1,236,912

General Revenues:

Property Taxes $479,966 $471,804 $479,966 $471,804 Specific Ownership Taxes $18,735 $17,291 $18,735 $17,291 Sales and Use Taxes $666,361 $629,196 $215,106 $202,825 $881,467 $832,021 Franchise Taxes $50,884 $47,989 $50,884 $47,989 Investment Income $982 $1,739 $7,068 $5,933 $8,050 $7,672 Other Revenues $46,942 $37,460 ($1,408) $46,942 $36,052

Total General Revenues $1,263,870 $1,205,479 $222,174 $207,350 $1,486,044 $1,412,829

TOTAL REVENUES $1,624,209 $1,579,564 $1,378,147 $1,070,177 $3,002,356 $2,649,741

Program Expenses: General Government $403,615 $435,416 $403,615 $435,416 Public Safety $467,103 $437,326 $467,103 $437,326 Public Works $380,675 $333,055 $380,675 $333,055 Parks and Recreation $335,146 $341,114 $335,146 $341,114 Interest on Long Term Debt $55,487 $59,175 $95,400 $44,199 $150,887 $103,374 Water and Wastewater $714,132 $686,911 $714,132 $686,911

TOTAL EXPENSES $1,642,026 $1,606,086 $809,532 $731,110 $2,451,558 $2,337,196 Special Item: Loss of Capital Asset ($372,404) $0 ($372,404) Change in Net Assets ($17,817) ($26,522) $568,615 ($33,337) $550,798 ($59,859)

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Governmental Activities Taxes comprise the largest source of operating revenue for the Town’s governmental activities, 2012 tax source revenue was $1,215,946, which is 74.88% of total revenues from governmental activities. Property taxes of $479,966 represent 39.47% of total tax revenue. Charges for services equaled $238,813, representing 14.7% of total revenues. The cost of governmental activities in 2012 was $1,642,026 compared to $1,606,086 in 2011, a 2.24% increase.

Expenses by Type – Governmental Activities

General Government includes Town Board of Trustees, Town Administrator, Town Clerk, Finance, and General Administration. Public Safety includes both Law Enforcement and Municipal Court. Parks & Recreation include expenses associated with the Town’s Community Center and general park maintenance. Public Works accounts for streets and building maintenance. Planning & zoning accounts for costs associated with building permit and plan review activity. Year-to-year changes by type of activity:

2012 2011%

Change General Government $340,482 $368,494 -7.60% Public Safety 467,103 437,326 6.81% Public Works 380,675 333,055 14.30% Parks and Recreation 335,146 341,114 -1.75% Planning & Zoning 63,133 66,922 -5.66% Interest on Long Term Debt 55,487 59,175 -6.23%

Total $1,642,026 $1,606,086 2.24%

$340,482

$467,103$380,675

$335,146

$63,133 $55,487

General Government

Public Safety

Public Works

Parks and Recreation

Planning & Zoning

Interest on Long Term Debt

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Business-type Activities Total 2012 service revenue from the Town’s business-type activities increased by $20,127, compared to 2011 while total revenues increased $307,970, or 28.78%, due primarily to a capital grant used for the construction of the wastewater treatment plant; operating expenses for 2012 increased by 10.73% or $78,422 compared to 2011. Fund Balance At the end of 2012, the Town’s governmental funds reported a combined fund balance of $599,134. This is an increase of $219,317 compared to the prior year’s ending balance. Of this total balance $156,480 is unreserved and available to finance the Town’s future operation and programs; $239,705 is reserved for the Downtown Development Authority; $9,949 is reserved for Community Center Use; $110,000 is in the form of a sellable asset; and $83,000 is reserved for emergencies. At year-end, the business-type activities reported total net assets of $3,927,832, an increase of $568,615. Budgetary Highlights Town Board of Trustees approved one supplement to the 2012 General Fund budget. The original appropriation of $1,274,344 was increased by $78,000, or 6%, to $1,352,344. This increase was primarily needed to account for capital lease proceeds for the transportation equipment purchased for public works and the police department. The Community Center Fund appropriations was increased by $9,233 to account for a new marquee sign for the Community Center to advertise events and some other minor improvements made in the Community Center financed by higher than budgeted sales tax revenue. The Downtown Development Authority (DDA) Fund appropriations was increased by $221,689 to account for debt payments and capital outlays-related projects undertaken by the DDA. The initial budget for the DDA only provided for funding through April 2012, as additional funding was subject to a vote authorization in April 2012, which passed. For the General Fund, revenue compared to budget was down $17,680, or 1.4%, due to the timing of grant revenue for the GOCO Grant related to the Parks and Recreation Master Plan. Expenses for the General Fund compared to budget were less by $92,896, or 6.9%, due to the timing of expenses related to the Parks and Recreation Master Plan, as well as Highway and Streets running under budget due to unfilled headcount. The DDA Fund actual revenue and expense compared to budget was better by $20,295, primarily due to the timing of NEDPEDs expenses; the capital project the DDA is undertaken. The Sewer Fund revenues are better than budget by $136,323,, or 17.3%, due to the higher sales tax allocation from the ballot initiative in April 2012 that changed the allocation between water and sewer funds, as well as higher than budgeted grant revenue for the construction of the wastewater treatment plant. Sewer Fund expenditures are better than budget by $1,233,201, or 26.9%, due to the timing of construction of the wastewater treatment plant. The plant finished the year at 75% complete, whereas it was anticipated to be 90% complete by the end of 2012. The delay is primarily due to delays from the state while dewatering the site.

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The Water Fund revenues are less than budget by $52,673, or 10.4%, due to the ballot initiative in April 2012 that changed the allocation between the water and sewer funds. Expenditures are less than budget by $142,809, or 17.7%, due to capital outlays, depreciation, and debt payments being less than anticipated. Capital Assets and Debt Administration At year-end, the Town had $12,163,426 invested in a broad range of capital assets including land and improvements, buildings, parks and equipment, vehicles, equipment, and water and sewer plants and distribution and collection systems. This increase of $2,804,881, or 30%, from the 2011 year-end amount is primarily due to the construction of the Town’s new wastewater treatment plant, offset by depreciation.

Capital Assets at Year-End Government Activities Business Activities Total

2012 2011 2012 2011 2012 2011 Land $692,805 $692,805 $11,436 $11,436 $704,241 $704,241

Water Rights $35,000 $35,000 $35,000 $35,000

Plant, Land & Bldg. Improvements

$5,531,048 $5,531,048

$6,007,066 $6,007,064

$11,538,114 $11,538,112

Equipment $499,417 $499,417 $622,531 $163,595 $1,121,948 $663,012

Transportation Equipment $318,001 $307,489 $229,145 $182,669 $547,146 $490,158

Construction in Process $45,964 $000,000 $3,428,291 $778,595 $3,474,255 $778,595

Less Acc Depreciation $(2,182,066) $(1,993,232) $(3,075,212) $(2,857,340) $(5,257,278) $(4,850,572) Total Capital Assets $4,905,169 $5,037,527 $7,258,257 $4,321,018 $12,163,426 $9,358,545

During 2012, the Town completed 75% of the new wastewater treatment plant. It is anticipated that the plant will be complete by June 30, 2013. In addition to the wastewater treatment plant, the Town added new transportation equipment including a new front loader and police vehicle. The new transportation equipment was paid for with lease financing.

Significant 2012 Capital Asset Additions

Water Plant Expansion Project $3,019,385 Front Loader for Public Works $77,808 Police Vehicle for Police Department $31,333 NEDPEDs Project $45,964

$3,174,490

Town of Nederland’s Outstanding Debt

Government Activities Business Activities Total Government 2012 2011 2012 2011 2012 2011

‘03 Com Center GO Bond $960,000 $1,035,000 $960,000 $1,035,000

‘00 Land Purchase $100,366 $109,776 $100,366 $109,776

Bank Loan- DDA $260,344 $- $260,344

Capital Leases $69,777 $37,909 $37,129 $15,919 $106,906 $53,828

Compensated Absences $27,246 $17,394 $7,660 $10,040 $34,906 $27,434

CSRPDA Loan - Water $2,156,569 $2,255,861 $2,156,569 $2,255,861

CSRPDA Loan - Sewer $3,829,134 $3,961,090 $3,829,134 $3,961,090

Total Long Term Debt $1,157,389 $1,460,423 $6,030,492 $6,242,910 $7,187,881 $7,703,333

ix

Economic and Other Factors The Town of Nederland’s financial trends continue to be bright. For 2012, the Town of Nederland ended the year up 6.1% over the same period in 2011, with large increases in the category of restaurants and retail. In 2012, a new coffee/retail establishment opened and sales from this new business contributed to the Town’s sales tax increases.

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000

Retail

Restaur…

Other

MMJ

Telecom

Leasing

Event

Town of Nederland Sales Tax: 2010-2012January - December

2012 2011 2010

2.2% Increase18.2% Increase

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Town of Nederland Sales TaxYears 2000-2012

Total

Event

Leasing

Telecom

MMJ

Note: Not adjusted for inflation

x

In addition to the new café, the Town is seeing other inquiries for commercial building activity that would add professional office and retail space. The Town’s assessed valuation remained flat for 2013, however, the county assessor reevaluates property values every two years, so it is anticipated property values will increase for 2014 due to brisk property sales and the tightening rental market, which should put more pressure on home sales and prices. Financial Contact The Town’s financial statements are designed to present users (citizens, customers, investors and creditors) with a general overview of the Town’s finances and to demonstrate the Town’s accountability. If you have questions about this report or need additional financial information, contact the Town’s Finance Department at: PO Box 396, Nederland, Colorado 80466; or telephone (303) 258-3266.

$500,000

$550,000

$600,000

$650,000

$700,000

$750,000

$800,000

$850,000

Town of Nederland Sales Tax History

Sales Tax Revenue Sales Tax Revenue adjusted for inflation

BASIC FINANCIAL STATEMENTS

BUSINESSGOVERNMENTAL TYPE

ACTIVITIES ACTIVITIES 2012 2011ASSETS

Cash and Investments 480,709$ 1,242,641$ 1,723,350$ 1,663,560$ Restricted Cash and Investments - 1,361,185 1,361,185 4,000,000 Receivables

Taxes 490,035 - 490,035 551,171 Accounts - 147,101 147,101 206,359 Other 118,593 33,216 151,809 133,390

Inventories - 10,760 10,760 10,760 Land Held for Resale 110,000 - 110,000 110,000 Interfund Amounts (341,133) 341,133 - - Capital Assets, Not Depreciated 738,769 3,474,727 4,213,496 1,517,835 Capital Assets, Depreciated

Net of Accumulated Depreciation 4,166,400 3,783,530 7,949,930 7,840,711

TOTAL ASSETS 5,763,373 10,394,293 16,157,666 16,033,786

LIABILITIESAccounts Payable 90,044 164,169 254,213 276,131 Retainage Payable - 195,186 195,186 16,684 Accrued Liabilities 20,551 7,115 27,666 39,896 Unearned Revenues - - - 73,916 Accrued Interest Payable - 32,535 32,535 18,937 Deposits 1,300 - 1,300 300 Noncurrent Liabilities

Due within One Year 123,982 301,245 425,227 380,996 Due in More Than One Year 1,033,407 5,766,211 6,799,618 7,361,247

TOTAL LIABILITIES 1,269,284 6,466,461 7,735,745 8,168,107

DEFERRED INFLOWS OF RESOURCESUnearned Property Tax Revenue 488,308 - 488,308 482,864

TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 1,757,592 6,466,461 8,224,053 8,650,971

NET POSITIONNet Investment in Capital Assets 3,775,026 1,235,425 5,010,451 1,909,187 Restricted for Downtown Development 108,036 - 108,036 70,335 Restricted for Emergencies 83,000 - 83,000 67,000 Unrestricted 39,719 2,692,407 2,732,126 5,336,293

TOTAL NET POSITION 4,005,781$ 3,927,832$ 7,933,613$ 7,382,815$

TOWN OF NEDERLAND, COLORADO

STATEMENT OF NET POSITIONAs of December 31, 2012

TOTALS

The accompanying notes are an integral part of the financial statements.

1

TOWN OF NEDERLAND, COLORADO

STATEMENT OF ACTIVITIESYear Ended December 31, 2012

PROGRAM REVENUESOPERATING CAPITAL

CHARGES FOR GRANTS AND GRANTS ANDFUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONSPRIMARY GOVERNMENTGovernmental Activities

General Government 265,034$ 42,111$ 1,000$ -$ Administration and Finance 153,256 - - - Municipal Court 31,236 4,630 - - Law Enforcement 404,534 72,799 7,860 - Planning and Zoning 63,133 33,489 6,000 - Highway and Streets 334,200 - 58,182 - Parks and Recreation 335,146 85,784 - 48,484 Interest on Long Term Debt 55,487 - - -

Total Governmental Activities 1,642,026 238,813 73,042 48,484

Business-Type ActivitiesSewer 271,698 406,010 - 408,302 Water 442,434 341,661 - - Interest on Long-term Debt 95,400 - - -

Total Business-Type Activities 809,532 747,671 - 408,302

Total Primary Government 2,451,558$ 986,484$ 73,042$ 456,786$

GENERAL REVENUESProperty TaxesSpecific Ownership TaxesSales and Use TaxesFranchise TaxesInterestMiscellaneous

SPECIAL ITEMLoss on Disposal of Assets

TOTAL GENERAL REVENUES

CHANGE IN NET POSITION

NET POSITION, Beginning

NET POSITION, Ending

The accompanying notes are an integral part of the financial statements.

2

NET (EXPENSE) REVENUE ANDCHANGE IN NET POSITION

GOVERNMENTAL BUSINESS-TYPEACTIVITIES ACTIVITIES 2012 2011

(221,923)$ -$ (221,923)$ (194,284)$ (153,256) - (153,256) (146,861) (26,606) - (26,606) (23,114)

(323,875) - (323,875) (334,303) (23,644) - (23,644) (27,422)

(276,018) - (276,018) (258,461) (200,878) - (200,878) (188,381) (55,487) - (55,487) (59,175)

(1,281,687) - (1,281,687) (1,232,001)

- 542,614 542,614 127,841 - (100,773) (100,773) 48,075 - (95,400) (95,400) (44,199)

- 346,441 346,441 131,717

(1,281,687) 346,441 (935,246) (1,100,284)

479,966 - 479,966 471,804 18,735 - 18,735 17,291

666,361 215,106 881,467 832,021 50,884 - 50,884 47,989

982 7,068 8,050 7,672 46,942 - 46,942 36,052

- - - (372,404)

1,263,870 222,174 1,486,044 1,040,425

(17,817) 568,615 550,798 (59,859)

4,023,598 3,359,217 7,382,815 7,442,674

4,005,781$ 3,927,832$ 7,933,613$ 7,382,815$

TOTALS

COMMUNITYGENERAL CENTER NONMAJOR

FUND FUND FUNDS 2012 2011ASSETS

Cash and Investments 208,268$ 100$ 272,341$ 480,709$ 380,062$ Property Taxes Receivable 364,529 - 125,506 490,035 551,171 Other Receivables 93,681 24,912 - 118,593 99,133 Due from Other Funds 8,662 - - 8,662 15,081 Land Held for Resale 110,000 - - 110,000 110,000

TOTAL ASSETS 785,140$ 25,012$ 397,847$ 1,207,999$ 1,155,447$

LIABILITIES AND FUND EQUITYLIABILITIES

Accounts Payable 56,349$ 3,504$ 30,191$ 90,044$ 174,734$ Accrued Liabilities 15,509 2,597 2,445 20,551 28,735 Due to Other Funds - 8,662 - 8,662 15,081 Deferred Revenues 362,802 - 125,506 488,308 556,780 Deposits 1,000 300 - 1,300 300

TOTAL LIABILITIES 435,660 15,063 158,142 608,865 775,630

FUND EQUITY Fund Balance

Nonspendable 110,000 - - 110,000 110,000 Restricted for Emergencies 83,000 - - 83,000 67,000 Restricted for Community Center - 9,949 - 9,949 - Restricted for Downtown Development - - 108,036 108,036 70,335 Unassigned 156,480 - 131,669 288,149 132,482

TOTAL FUND EQUITY 349,480 9,949 239,705 599,134 379,817

TOTAL LIABILITIES AND FUND EQUITY 785,140$ 25,012$ 397,847$

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore,are not reported in the funds. 4,905,169 5,037,527

Long-term liabilities are not due and payable in the current period and are not reported in the funds. These include long term obligation of ($1,130,143), interfund amounts of ($341,133), and accrued compensated absences ($27,246). (1,498,522) (1,460,423)

Long-term assets are not available to pay for current-period expenditures and therefore, are deferred in governmental funds. - 66,677

Net position of governmental activities 4,005,781$ 4,023,598$

TOTAL GOVERNMENTAL FUNDS

TOWN OF NEDERLAND, COLORADO

BALANCE SHEETGOVERNMENTAL FUNDS

As of December 31, 2012

The accompanying notes are an integral part of the financial statements.

3

COMMUNITYGENERAL CENTER NONMAJOR

FUND FUND FUNDS 2012 2011REVENUES

Taxes 981,717$ 161,329$ 131,081$ 1,274,127$ 1,224,873$ Licenses and Permits 42,111 - - 42,111 27,347 Intergovernmental 48,870 - 81,151 130,021 90,651 Charges for Services 38,119 85,784 - 123,903 125,130 Fines and Forfeitures 72,799 - - 72,799 72,364 Miscellaneous 36,960 9,492 491 46,943 37,460 Interest 588 - 394 982 1,739

TOTAL REVENUES 1,221,164 256,605 213,117 1,690,886 1,579,564

EXPENDITURES Current

General Government 198,157 - 44,514 242,671 217,146 Administration and Finance 153,256 - - 153,256 146,861 Municipal Court 31,236 - - 31,236 27,319 Law Enforcement 441,546 - - 441,546 414,475 Planning and Zoning 63,133 - - 63,133 66,922 Highway and Streets 312,178 - - 312,178 285,485 Parks and Recreation 57,942 124,402 16,000 198,344 208,267

Debt ServicePrincipal - 75,000 408,224 483,224 99,052 Interest - 42,729 12,758 55,487 64,804

Capital Outlay - 4,525 46,277 50,802 116,157

TOTAL EXPENDITURES 1,257,448 246,656 527,773 2,031,877 1,646,488

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (36,284) 9,949 (314,656) (340,991) (66,924)

OTHER FINANCING SOURCES (USES) Proceeds from Capital Lease 77,808 - - 77,808 25,241 Loan Proceeds - - 482,500 482,500 - Transfers In - - 1,526 1,526 16,351 Transfers Out (1,526) - - (1,526) (15,851)

TOTAL OTHER FINANCING SOURCES (USES) 76,282 - 484,026 560,308 25,741

NET CHANGE IN FUND BALANCES 39,998 9,949 169,370 219,317 (41,183)

FUND BALANCES, Beginning 309,482 - 70,335 379,817 421,000

FUND BALANCES, Ending 349,480$ 9,949$ 239,705$ 599,134$ 379,817$

TOTAL GOVERNMENTAL FUNDS

TOWN OF NEDERLAND, COLORADO

STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

Year Ended December 31, 2012

The accompanying notes are an integral part of the financial statements.

4

Amounts Reported for Governmental Activities in the Statement of Activitiesare Different Because:

Net Changes in Fund Balances - Total Governmental Funds 219,317$

Governmental funds report capital outlays as expenditures. However, in the statement of activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciationexpense. This is the amount by which depreciation ($261,130), exceeded capital outlay$128,772 in the current period. (132,358)

Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. These include debt payments of $486,121payments of capital lease of $45,940, and change in accrued compensated absences of ($9,852). 522,209

Capital lease and loan proceeds are reported as a financing sources in the governmental funds andincrease fund balance. In the government-wide financial statements, however, the capitallease ($77,808) and loan ($482,500) increase long-term liabilities in the statement of net positionand do not effect the statement of activities. (560,308)

Long-term assets are not available to pay for current-period expenditures and therefore, are deferred in governmental funds. This represents amounts received in the current periodwhich were recognized as revenue in the prior year. (66,677)

Change in Net Position of Governmental Activities (17,817)$

Year Ended December 31, 2012

TOWN OF NEDERLAND, COLORADO

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES

The accompanying notes are an integral part of the financial statements.

5

ASSETS SEWER WATER 2012 2011Current Assets

Cash and Investments 476,365$ 766,276$ 1,242,641$ 1,283,498$ Restricted Cash and Investments 1,361,185 - 1,361,185 4,000,000 Accounts Receivable 80,451 66,650 147,101 139,682 Other Receivables 16,608 16,608 33,216 34,257 Inventories - 10,760 10,760 10,760

Total Current Assets 1,934,609 860,294 2,794,903 5,468,197

Noncurrent AssetsAdvance to Downtown Development Authority - 341,133 341,133 - Capital Assets, net of accumulated depreciation 3,713,474 3,544,783 7,258,257 4,321,019

Total Noncurrent Assets 3,713,474 3,885,916 7,599,390 4,321,019

TOTAL ASSETS 5,648,083 4,746,210 10,394,293 9,789,216

LIABILITIESCurrent Liabilities

Accounts Payable 156,974 7,195 164,169 101,397 Retainage Payable 195,186 - 195,186 16,684 Accrued Liabilities 2,212 4,903 7,115 11,161 Accrued Interest Payable 15,740 16,795 32,535 18,937 Current Portion of Long-term Debt 189,670 111,575 301,245 243,934

Total Current Liabilities 559,782 140,468 700,250 392,113

Noncurrent LiabilitiesCapital Leases Payable 9,234 9,233 18,467 15,919 Loans Payable 3,647,178 2,055,942 5,703,120 5,973,017 Loan Discount 36,964 - 36,964 38,910 Compensated Absences 3,830 3,830 7,660 10,040

Total Noncurrent Liabilities 3,697,206 2,069,005 5,766,211 6,037,886

TOTAL LIABILITIES 4,256,988 2,209,473 6,466,461 6,429,999

NET POSITIONNet Investment in Capital Assets (132,608) 1,368,033 1,235,425 (1,651,998) Unreserved 1,523,703 1,168,704 2,692,407 5,011,215

TOTAL NET POSITION 1,391,095$ 2,536,737$ 3,927,832$ 3,359,217$

TOTALS

TOWN OF NEDERLAND, COLORADO

STATEMENT OF NET POSITION PROPRIETARY FUND TYPE

As of December 31, 2012

The accompanying notes are an integral part of the financial statements.

6

SEWER WATER 2012 2011OPERATING REVENUES

Charges for Services 406,010$ 341,661$ 747,671$ 727,544$

TOTAL OPERATING REVENUES 406,010 341,661 747,671 727,544

OPERATING EXPENSESPersonnel 99,806 103,823 203,629 199,769 Operations 145,226 147,408 292,634 680,319 Depreciation 26,666 191,203 217,869 180,635

TOTAL OPERATING EXPENSES 271,698 442,434 714,132 1,060,723

OPERATING INCOME 134,312 (100,773) 33,539 (333,179)

NON-OPERATING REVENUES (EXPENSES)Sales and Use Taxes 107,553 107,553 215,106 202,825 Grants 408,054 - 408,054 101,946 Interest Income 581 6,487 7,068 5,933 Interest Expense (40,502) (54,898) (95,400) (44,199)

TOTAL NON-OPERATING REVENUES (EXPENSES) 475,686 59,142 534,828 266,505

INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 609,998 (41,631) 568,367 (66,674)

Capital Contributions- Plant Investment Fees 248 - 248 33,337

CHANGE IN NET POSITION 610,246 (41,631) 568,615 (33,337)

NET POSITION, Beginning 780,849 2,578,368 3,359,217 3,392,554

NET POSITION, Ending 1,391,095$ 2,536,737$ 3,927,832$ 3,359,217$

Year Ended December 31, 2012TOTALS

TOWN OF NEDERLAND, COLORADO

STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET POSITION

PROPRIETARY FUND TYPE

The accompanying notes are an integral part of the financial statements.

7

SEWER WATER 2012 2011CASH FLOWS FROM OPERATING ACTIVITIES

Cash Received from Customers 401,123$ 356,450$ 757,573$ 727,842$ Cash Paid to Employees (105,716) (104,340) (210,056) (187,322) Cash Paid to Suppliers 99,035 (166,675) (67,640) (698,766)

Net Cash Provided by Operating Activities 394,442 85,435 479,877 (158,246)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESSales Taxes Received 107,553 107,553 215,106 202,825

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESGrants Received 408,054 - 408,054 101,946 Capital Contributions 248 - 248 33,337 Purchase of Capital Assets (3,042,622) (112,486) (3,155,108) (651,592) Advance to Downtown Development Authority - (341,133) (341,133) - Loan Proceeds - - - 4,000,000 Lease Proceeds 23,237 23,238 46,475 25,241 Loan Payments (133,902) (99,292) (233,194) (244,139) Interest Payments (36,164) (45,636) (81,800) (33,595) Lease Payments (6,290) (18,975) (25,265) (9,322)

Net Cash Used by Capital and Related Financing Activities (2,787,439) (594,284) (3,381,723) 3,221,876

CASH FLOWS FROM INVESTING ACTIVITIESInterest Received 581 6,487 7,068 5,933

Net Increase (Decrease) in Cash and Cash Equivalents (2,284,863) (394,809) (2,679,672) 3,272,388

CASH AND CASH EQUIVALENTS, Beginning 4,122,413 1,161,085 5,283,498 2,011,110

CASH AND CASH EQUIVALENTS, Ending 1,837,550$ 766,276$ 2,603,826$ 5,283,498$

RECONCILIATION OF OPERATING INCOME TO NETCASH PROVIDED BY OPERATING ACTIVITIES

Operating Income 134,312$ (100,773)$ 33,539$ (333,179)$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation 26,666 191,203 217,869 180,635

Changes in Assets and LiabilitiesAccounts Receivable (4,887) (2,532) (7,419) 3,698 Other Receivable (16,280) 17,321 1,041 (3,313) Inventories - - - 293 Accounts Payable 65,355 (2,583) 62,772 32,963 Retainage Payable 195,186 (16,684) 178,502 (51,790) Accrued Liabilities (4,720) 673 (4,047) 8,479 Accrued Compensated Absences (1,190) (1,190) (2,380) 3,968 Total Adjustments 260,130 186,208 446,338 174,933

Net Cash Provided by Operating Activities 394,442$ 85,435$ 479,877$ (158,246)$

Increase (Decrease) in Cash and Cash Equivalents

TOTALS

TOWN OF NEDERLAND, COLORADO

STATEMENT OF CASH FLOWSPROPRIETARY FUND TYPESYear Ended December 31, 2012

The accompanying notes are an integral part of the financial statements.

8

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

9

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Town of Nederland, Colorado (the “Town”) was incorporated in 1874 and is governed by a Mayor and six-member council elected by the residents.

The accounting policies of the Town of Nederland, Colorado conform to generally accepted accounting principles as applicable to governments. Following is a summary of the more significant policies.

Reporting Entity

In accordance with governmental accounting standards, the Town of Nederland has considered the possibility of inclusion of additional entities in its basic financial statements.

The definition of the reporting entity is based primarily on financial accountability. The Town is financially accountable for organizations that make up its legal entity. It is also financially accountable for legally separate organizations if Town officials appoint a voting majority of the organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. The Town may also be financially accountable for governmental organizations that are fiscally dependent upon it.

Based on the application of these criteria, the Town includes the following organization in its reporting entity: Downtown Development Authority - The Nederland Downtown Development Authority (the Authority”) was established by the Town’s Board of Trustees to halt and prevent deterioration of property values within its district and to assist in the development and redevelopment of its district and to use its power to promote the general welfare of the district by use of its direct and supplemental powers. The Authority has a separate Board with members appointed by the Town’s Board of Trustees. Although the Authority is legally separate from the Town, the Authority’s primary revenue source, property taxes, can only be levied by the Town. The Authority is reported as a blended component unit of the Town. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

10

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-Wide and Fund Financial Statements (Continued) The statement of activities demonstrates the degree to which the direct expenses of the given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Property taxes, specific ownership taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Town.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

11

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the Town’s practice to use restricted resources first, then unrestricted resources as they are needed.

In the fund financial statements, the Town reports the following major governmental funds:

The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund.

The Community Center Fund accounts for the operations, capital improvements, and debt service for the Town’s Community Center.

The Town reports the following major proprietary funds:

The Sewer Fund accounts for the financial activities associated with the provision of sewer services. The Water Fund accounts for the financial activities associated with the provision of water services.

Cash and Investments

Cash equivalents include investments with original maturities of three months or less. Investments are recorded at fair value.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

12

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and the proprietary funds in the fund financial statements. Infrastructure assets used to support governmental activities, which include streets, bridges, sidewalks, drainage systems and trails, are excluded from the financial statements except for additions since January 1, 2004. Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Capital assets, which include property and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized.

Property and equipment of the Town is depreciated using the straight line method over the following estimated useful lives:

Land Improvements 20 years Building 40 years Utility Plants 20-50 years Machinery and Equipment 5-10 years Vehicles 5-10 years Compensated Absences

Employees of the Town are allowed to accumulate paid time off to a maximum of 216 hours. Upon retirement or separation from the Town, employees will be paid for any accumulated paid time off.

These compensated absences are recognized as current salary costs when earned in the proprietary funds and when paid in the governmental funds. A liability has been recorded in the government-wide financial statements for the accrued compensated absences.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

13

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Long-Term Obligations

In the government-wide financial statements, and proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Interfund Transactions Interfund transactions are reflected as either loans, services provided, reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “Internal Amounts”. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Property Taxes

Property taxes are levied on November 1 and attach as an enforceable lien on property on January 1. Taxes are payable in full on April 30 or in two installments on February 28 and June 15. The County Treasurer’s office collects property taxes and remits to the Town on a monthly basis.

Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue and the receivable is reduced. Net Position In the government-wide financial statements, net position is restricted when constraints placed on the net position are externally imposed.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

14

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fund Balance Classification

The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:

Nonspendable – This classification includes amounts that cannot be spent because

they are either not spendable in form or are legally or contractually required to be maintained intact. At December 31, 2012, the Town classified Land Held for Resale as nonspendable.

Restricted – This classification includes amounts for which constraints have been

placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. The Town has classified Emergency Reserves and amounts held by the Community Center Fund and the Downtown Development Authority as being restricted because their use is restricted by State Statute for declared emergencies, and for parks and recreation, and for urban renewal.

Committed – This classification includes amounts that can be used only for specific

purposes pursuant to constraints imposed by formal action of the Board of Trustees. These amounts cannot be used for any other purpose unless the Board of Trustees removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. The Town did not have any committed resources as of December 31, 2012.

Unassigned – This classification includes the residual fund balance for the General

Fund. The Unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of Assigned fund balance amounts.

The Town would typically use restricted fund balances first, followed by committed resources, and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

15

NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgets and Budgetary Accounting

The Town follows these procedures in establishing the budgetary data reflected in the financial statements:

In October, the Town staff submits to the Board of Trustees a proposed operating

budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.

Public hearings are conducted to obtain taxpayer comments.

Prior to December 31, the budget is legally enacted through passage of a resolution.

The Town Administration is authorized to transfer budgeted amounts between

departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Board of Trustees.

Budgets are legally adopted for all funds of the Town. Budgets for the General and

Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

Budgeted amounts in the financial statements are as originally adopted or as

amended by the Board of Trustees. All appropriations lapse at year end. Colorado governments may not exceed budgeted appropriations at the fund level.

Legal Compliance

At December 31, 2012, actual expenditures in the Downtown Development Authority Fund exceeded budgeted amounts by $231,529. This may be a violation of State Statute.

NOTE 3: DEPOSITS AND INVESTMENTS

A summary of deposits and investments as of December 31, 2012 follows:

Petty Cash $ 100 Cash Deposits 3,084,435 Total $ 3,084,535

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

16

NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Cash and investments are reported in the financial statements as follows:

Governmental Activities $ 480,709 Business-type Activities 1,242,641 Business-type Activities – Restricted 1,361,185

Total $ 3,084,535

Deposits

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulations. At December 31, 2012, State regulatory commissioners have indicated that all financial institutions holding deposits for the Town are eligible public depositories. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits.

The Town has no policy regarding custodial credit risk for deposits.

At December 31, 2012, the Town had deposits with financial institutions with a carrying amount of $3,084,435. The bank balances with the financial institutions were $3,124,092. Of these balances, $409,461 was covered by federal depository insurance and $2,714,631 was covered by collateral held by authorized escrow agents in the financial institutions name (PDPA). Investments Interest Rate Risk The Town has a formal investment policy that limits interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity and by investing operating funds primarily with durations of no longer than five years, money market mutual funds, or similar investment pools.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

17

NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Credit Risk Colorado statutes specify in which instruments the units of local government may invest which includes: • Obligations of the United States and certain U.S. government agency securities • General obligation and revenue bonds of U.S. local government entities • Local government investment pools • Written repurchase agreements collateralized by certain authorized securities • Certain money market funds • Guaranteed investment contracts

The above investments are authorized for all funds and fund types used by Colorado municipalities. Restricted Cash and Investments Cash in the amount of $1,361,185 is restricted in the Sewer Fund. The Colorado Water Resources and Power Development Authority held the cash and investments, which represents loan proceeds restricted for improvements to the wastewater treatment facility on behalf of the Town but not in the Town’s name.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

18

NOTE 4: CAPITAL ASSETS

Capital assets activity for the year ended December 31, 2012 is summarized below:

Balances Balances 12/31/11 Additions Deletions 12/31/12

Governmental Activities Capital Assets, not depreciated Land and Sites $ 692,805 $ - $ - $ 692,805 Construction in Process - 45,964 - 45,964

Total Capital Assets, not depreciated 692,805 45,964 - 738,769

Capital Assets, depreciated Land Improvements 480,265 - - 480,265 Infrastructure 1,193,013 - - 1,193,013 Buildings 3,857,770 - - 3,857,770 Transportation Equipment 307,489 82,808 72,296 318,001 Other Equipment 499,417 - - 499,417 Total Capital Assets, depreciated 6,337,954 82,808 72,296 6,348,466 Less Accumulated Depreciation Land Improvements 113,843 23,170 - 137,013 Infrastructure 305,812 48,590 - 354,402 Buildings 873,007 129,566 - 1,002,573 Transportation Equipment 270,476 31,071 72,296 229,251 Other Equipment 430,094 28,733 - 458,827 Total Accumulated Depreciation 1,993,232 261,130 72,296 2,182,066 Total Capital Assets, depreciated, Net 4,344,722 (178,322) - 4,166,400 Governmental Activities, Capital Assets, Net $ 5,037,527 $ (132,358) $ - $ 4,905,169

Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 19,991 Law Enforcement 15,100 Highway and Streets 93,762 Community Center 128,422 Parks and Recreation 3,855 Total $ 261,130

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

19

NOTE 4: CAPITAL ASSETS (Continued) Balances Balances 12/31/11 Additions Deletions 12/31/12

Business-Type Activities Capital Assets, not depreciated Land $ 11,436 $ - $ - $ 11,436 Water Rights 35,000 - - 35,000 Construction in Process 778,594 3,019,385 369,688 3,428,291 Total Capital Assets, not depreciated 825,030 3,019,385 369,688 3,474,727 Capital Assets, depreciated Plant and Infrastructure 6,007,066 - - 6,007,066 Equipment 163,595 458,936 - 622,531 Transportation Equipment 182,669 46,476 - 229,145 Total Capital Assets, depreciated 6,353,330 505,412 - 6,858,742 Less: Accumulated Depreciation Plant and Infrastructure 2,580,476 165,547 - 2,746,023 Equipment 114,389 40,636 - 155,025 Transportation Equipment 162,476 11,688 - 174,164 Total Accumulated Depreciation 2,857,341 217,871 - 3,075,212

Total Capital Assets, depreciated, Net 3,495,989 287,541 - 3,783,530 Business-Type Activities, Capital Assets, Net $ 4,321,019 $ 3,306,926 $ 369,688 $ 7,258,257

Depreciation expense was charged to functions/programs of the Town as follows: Business-Type Activities Sewer Fund $ 26,667 Water Fund 191,204 Total $ 217,871

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

20

NOTE 5: INTERFUND BALANCES Advances to Other Funds In 2012, the Water Fund loaned the Downtown Development Authority $482,500. During the

year, the Authority paid the Water Fund $141,367 towards this advance. The balance is being repaid with monthly installments with interest accruing at the published prime rate, not to exceed 7% and not fall below 2.5%.

NOTE 6: LONG-TERM DEBT

Governmental Activities

Following is a summary of long-term debt transactions for the governmental activities for the year ended December 31, 2012. Balance Balance Due In 12/31/11 Additions Payments 12/31/12 One Year

2003 General Obligation Bonds $ 1,035,000 $ - $ 75,000 $ 960,000 $ 80,000 Land Purchase Note 109,776 - 9,410 100,366 10,024 Bank Loan – DDA 260,344 - 260,344 - - Capital Leases 37,909 77,808 45,940 69,777 33,958 Compensated Absences 17,394 9,852 - 27,246 - Total $ 1,460,423 $ 87,660 $ 390,694 $ 1,157,389 $ 123,982

Accrued Compensated Absences are being paid from resources generated by the General Fund.

2003 General Obligation Bonds In April 2003, the Town issued General Obligation Bonds in the amount of $1,450,000 along with Capital Appreciation Bonds with a face value of $49,999. Bond proceeds were used to renovate and repair the Town’s Community Center. Interest accrues on the bonds at rates ranging from 2% to 4.2% per annum. Interest payments are due on June 1 and December 1. Principal payments are due on December 1, through 2022. Land Purchase Note During 2000, the Town entered into a loan agreement to purchase land for $152,500. Quarterly principal and interest payments of $4,000 are required through June, 2020, including interest accruing at 6.3%. All payments will be made from the Conservation Trust Fund.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

21

NOTE 6: LONG-TERM DEBT (Continued) Governmental Activities (Continued)

Bank Loan - DDA During 2009, the Authority entered into a loan agreement with Mutual of Omaha Bank for $300,000. Loan proceeds will be used for community development, primarily sidewalk improvements. During 2012, the Water Fund advanced the DDA funds used to repay this Bank Loan. This loan was paid in full as of December 31, 2012. Future Debt Service Requirements Annual debt service requirements for the outstanding notes and bonds at December 31, 2012 are as follows: Year Ended December 31, Principal Interest Total

2013 $ 90,024 $ 45,986 $ 136,010 2014 95,659 42,312 137,971 2015 96,333 38,322 134,655 2016 102,038 34,216 136,254 2017 107,812 29,753 137,565 2018– 2022 568,500 74,368 642,868

Total Debt Service Requirements $ 1,060,366 $ 264,957 $ 1,325,323 Capital Leases The Town has entered into several capital lease agreements to purchase equipment which will be paid from revenues of the General Fund and the Authority. These leases require monthly payments of ranging from $408 to $3,580 including interest ranging from 1.37% to 5%. The leases mature from February of 2012 to February 2015. Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2012.

Year Ended December 31,

2013 $ 35,045 2014 31,799 2015 4,483

Total Minimum Lease Payments 71,327 Less: Interest (1,550)

Present Value of Future Minimum Lease Payments $ 69,777

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

22

NOTE 6: LONG-TERM DEBT (Continued)

Business-Type Activities

Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2012

Balance Balance Due In 12/31/11 Additions Payments 12/31/12 One Year

CWRPDA Loan – Water $ 2,255,861 $ - $ 99,292 $ 2,156,569 $ 100,627 CWRPDA Loan – Sewer 3,961,090 - 131,956 3,829,134 181,956 Capital Lease 15,919 46,475 25,265 37,129 18,662 Compensated Absences 10,040 - 2,380 7,660 - Total $ 6,242,910 $ 46,475 $ 258,893 $ 6,030,492 $ 301,245

CWRPDA Loan - Water On January 30, 2009, the Town entered into a loan agreement with the Colorado Water Resources and Power Development Authority (“CWRPDA”). Loan proceeds were used to finance the cost of upgrades and improvements to the Town’s water treatment facility. Payments of principal and interest are due semi-annually on May 1 and November 1, beginning on May 1, 2011, through November, 2030. Interest accrues at 2% per annum. This loan is payable from a 1% sales and use tax, and from revenues of the water utility system after deducting operation and maintenance expenses. CWRPDA Loan - Sewer In November 2011, the Town entered into a loan agreement with the Colorado Water Resources and Power Development Authority (“CWRPDA”). Loan proceeds were used to finance the cost of upgrades and improvements to the Town’s wastewater treatment facility. Payments of principal and interest are due semi-annually, beginning on February 2012, through August, 2032. Interest accrues at an effective rate of 2.24% per annum on $1,961,090, which is reported net of a discount of $38,910. Interest does not accrue on the remaining $2,000,000. This loan is payable 1% sales and use tax, and from revenues of the sewer utility system after deducting operation and maintenance expenses.

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

23

NOTE 6: LONG-TERM DEBT (Continued)

Business-Type Activities (Continued) Future Debt Service Requirements Annual debt service requirements for the outstanding bonds at December 31, 2012 are as follows:

Year Ended December 31, Principal Interest Total

2013 $ 282,583 $ 80,737 $ 363,320 2014 284,606 77,434 362,040 2015 292,523 73,492 366,015 2016 294,628 69,529 364,157 2017 296,774 65,721 362,495 2018-2022 1,535,182 278,268 1,813,450 2023-2027 1,607,423 195,980 1,803,403 2028-2032 1,391,984 84,657 1,476,641

Total Debt Service Requirements $ 5,985,703 $ 925,818 $ 6,911,521 Capital Leases The Town has entered into a capital lease agreements to purchase transportation equipment which will be paid from revenues of the Water and Sewer Funds. These leases require monthly payments of ranging from $1,084 to $1,339 including interest ranging from 2.38% to 3%. The leases mature from April 2013 to February 2015. Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2012.

Year Ended December 31,

2013 $ 19,317 2014 16,067 2015 2,678

Total Minimum Lease Payments 38,062 Less: Interest (933)

Present Value of Future Minimum Lease Payments $ 37,129

TOWN OF NEDERLAND, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2012

24

NOTE 7: EMPLOYEE PENSION PLAN

Deferred 457 Compensation Plan The Town offers its employees a deferred compensation plan in accordance with Internal

Revenue Code Section 457. The plan is available to all employees and permits them to defer a portion of their salary until future years. The Board of Trustees determines the Town’s contributions to the plan, currently a matching contribution up to a maximum of 4% of each employee’s salary. During the years ended December 31, 2012 and 2011, the Town contributed $16,164 and $16,749, respectively, to the plan. The plan is administered by the International City/County Management Association Retirement Corporation (ICMA-RC), and all plan assets are held in trust for the exclusive benefit of the participants.

NOTE 8: COMMITMENTS AND CONTINGENCIES

Tabor Amendment

Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local government. On November 5, 1996, voters within the Town approved the collection, retention and expenditure of the full revenues generated by the Town in 1996 and subsequent years for street improvement projects, capital projects, basic municipal services and/or lawful municipal purposes, notwithstanding the provisions of the Amendment.

The Town has established an emergency reserve, representing 3% of qualifying expenditures, as required by the Amendment. At December 31, 2012, the emergency reserve of $83,000 was recorded in the General Fund.

REQUIRED SUPPLEMENTARY INFORMATION

VARIANCE ORIGINAL FINAL Positive 2011

BUDGET BUDGET ACTUAL (Negative) ACTUALREVENUES

Taxes 950,838$ 950,838$ 981,717$ 30,879$ 940,826$ Licenses and Permits 20,346 20,346 42,111 21,765 27,347 Intergovernmental 132,060 132,060 48,870 (83,190) 59,566 Charges for Services 40,500 40,500 38,119 (2,381) 39,732 Fines and Forfeitures 71,000 71,000 72,799 1,799 72,364 Miscellaneous 23,500 23,500 36,960 13,460 33,438 Interest 600 600 588 (12) 1,025

TOTAL REVENUES 1,238,844 1,238,844 1,221,164 (17,680) 1,174,298

EXPENDITURES Current

General Government 271,517 271,517 198,157 73,360 166,345 Administration and Finance 155,952 155,952 153,256 2,696 146,861 Municipal Court 30,999 30,999 31,236 (237) 27,319 Law Enforcement 403,423 434,948 441,546 (6,598) 414,475 Planning and Zoning 74,648 74,648 63,133 11,515 66,922 Highway and Streets 279,434 325,909 312,178 13,731 285,485 Parks and Recreation 56,371 56,371 57,942 (1,571) 68,156

TOTAL EXPENDITURES 1,272,344 1,350,344 1,257,448 92,896 1,175,563

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES (33,500) (111,500) (36,284) 75,216 (1,265)

OTHER FINANCING SOURCES (USES)Proceeds from Capital Lease - 78,000 77,808 (192) 25,241 Transfers In - - - - 500 Transfers Out (2,000) (2,000) (1,526) 474 (15,851)

TOTAL OTHER FINANCING SOURCES (USES) (2,000) 76,000 76,282 282 9,890

NET CHANGE IN FUND BALANCE (35,500) (35,500) 39,998 75,498 8,625

FUND BALANCES - - 309,482 309,482 300,857

FUND BALANCES, Ending (35,500)$ (35,500)$ 349,480$ 384,980$ 309,482$

2012

TOWN OF NEDERLAND, COLORADO

GENERAL FUNDBUDGETARY COMPARISON SCHEDULE

Year Ended December 31, 2012

See the accompanying independent auditors' report.

25

VARIANCEORIGINAL FINAL Positive 2011BUDGET BUDGET ACTUAL (Negative) ACTUAL

REVENUESSales and Use Taxes 152,375$ 155,316$ 161,329$ 6,013$ 152,118$ Intergovernmental - - - - 9,800 Charges for Services 93,098 93,098 85,784 (7,314) 85,398 Miscellaneous - 6,292 9,492 3,200 1,764

TOTAL REVENUES 245,473 254,706 256,605 1,899 249,080

EXPENDITURESCommunity Center 125,473 130,181 124,402 5,779 124,111 Debt Service

Principal 75,000 75,000 75,000 - 75,000 Interest 45,000 45,000 42,729 2,271 45,354

Capital Outlay - 4,525 4,525 - 41,035

TOTAL EXPENDITURES 245,473 254,706 246,656 8,050 285,500

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES - - 9,949 9,949 (36,420)

OTHER FINANCING SOURCES (USES)Transfers In - - - - 13,136

NET CHANGE IN FUND BALANCE - - 9,949 9,949 (23,284)

FUND BALANCE, Beginning - - - - 23,284

FUND BALANCE, Ending -$ -$ 9,949$ 9,949$ -$

2012

TOWN OF NEDERLAND, COLORADO

COMMUNITY CENTER FUNDBUDGETARY COMPARISON SCHEDULE

Year Ended December 31, 2012

See the accompanying independent auditors' report.

26

COMBINING AND INDIVIDUAL FUND SCHEDULES

CONSERVATION DOWNTOWN

TRUST DEVELOPMENT

FUND AUTHORITY 2012 2011

ASSETSCash and Investments 4,000$ 268,341$ 272,341$ 174,857$ Property Taxes Receivable - 125,506 125,506 195,422

TOTAL ASSETS 4,000$ 393,847$ 397,847$ 370,279$

LIABILITIES AND FUND BALANCE LIABILITIES

Accounts Payable 4,000$ 26,191$ 30,191$ 104,615$ Accrued Liabilities - 2,445 2,445 - Deferred Revenues - Property Taxes - 125,506 125,506 195,329

TOTAL LIABILITIES 4,000 154,142 158,142 299,944

FUND BALANCES

Restricted - 239,705 239,705 70,335

TOTAL LIABILITIES AND FUND BALANCES 4,000$ 393,847$ 397,847$ 370,279$

SPECIAL REVENUE

TOTALS

TOWN OF NEDERLAND, COLORADO

NONMAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET

December 31, 2012

See the accompanying independent auditors' report.

27

CONSERVATION DOWNTOWN

TRUST DEVELOPMENT

FUND AUTHORITY 2012 2011

REVENUESTaxes -$ 131,081$ 131,081$ 131,929$ Intergovernmental 14,474 66,677 81,151 21,285 Miscellaneous - 491 491 2,258 Interest - 394 394 714

TOTAL REVENUES 14,474 198,643 213,117 156,186

EXPENDITURES Parks and Recreation 16,000 - 16,000 16,000 General Government - 44,514 44,514 50,801 Debt Service

Principal - 408,224 408,224 24,052 Interest - 12,758 12,758 19,450

Capital Outlay - 46,277 46,277 75,122

TOTAL EXPENDITURES 16,000 511,773 527,773 185,425

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES (1,526) (313,130) (314,656) (29,239)

OTHER FINANCING SOURCES (USES)Proceeds from Loan - 482,500 482,500 - Transfers In 1,526 - 1,526 2,715 Transfers Out - - - (500)

TOTAL OTHER FINANCING SOURCES (USES) 1,526 482,500 484,026 2,215

CHANGE IN FUND BALANCES - 169,370 169,370 (27,024)

FUND BALANCES - 70,335 70,335 97,359

FUND BALANCES, Ending -$ 239,705$ 239,705$ 70,335$

AND CHANGES IN FUND BALANCESYear Ended December 31, 2012

TOTALS

SPECIAL REVENUE

TOWN OF NEDERLAND, COLORADO

NONMAJOR GOVERNMENTAL FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES

See the accompanying independent auditors' report.

28

ORIGINAL VARIANCEAND FINAL Positive 2011

BUDGET ACTUAL (Negative) ACTUALREVENUES

Intergovernmental 14,000$ 14,474$ 474$ 13,285$

TOTAL REVENUES 14,000 14,474 474 13,285

EXPENDITURESParks and Recreation 16,000 16,000 - 16,000

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES (2,000) (1,526) 474 (2,715)

OTHER FINANCING SOURCES (USES)Transfers In 2,000 1,526 (474) 2,715

NET CHANGE IN FUND BALANCE - - - -

FUND BALANCE, Beginning - - - -

FUND BALANCE, Ending -$ -$ -$ -$

2012

TOWN OF NEDERLAND, COLORADO

CONSERVATION TRUST FUNDBUDGETARY COMPARISON SCHEDULE

Year Ended December 31, 2012

See the accompanying independent auditors' report.

29

VARIANCEORIGINAL FINAL Positive 2011BUDGET BUDGET ACTUAL (Negative) ACTUAL

REVENUESTaxes 128,652$ 128,652$ 131,081$ 2,429$ 131,929$ Intergovernmental - 66,667 66,677 10 8,000 Miscellaneous - - 491 491 2,258 Interest - - 394 394 714

TOTAL REVENUES 128,652 195,319 198,643 3,324 142,901

EXPENDITURESGeneral Government 11,155 45,635 44,514 1,121 50,801 Debt Service

Principal Payments 25,500 165,089 408,224 (243,135) 24,052 Interest Expense 21,900 15,208 12,758 2,450 19,450

Capital Outlay - 54,312 46,277 8,035 75,122

TOTAL EXPENDITURES 58,555 280,244 511,773 (231,529) 169,425

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES 70,097 (84,925) (313,130) (228,205) (26,524)

OTHER FINANCING SOURCES (USES)Proceeds from Loan - 234,000 482,500 248,500 -

TOTAL OTHER FINANCING SOURCES (USES) - 234,000 482,500 248,500 -

NET CHANGE IN FUND BALANCE 70,097 149,075 169,370 20,295 (26,524)

FUND BALANCE, Beginning 122,589 70,335 70,335 - 96,859

FUND BALANCE, Ending 192,686$ 219,410$ 239,705$ 20,295$ 70,335$

TOWN OF NEDERLAND, COLORADO

DOWNTOWN DEVELOPMENT AUTHORITYBUDGETARY COMPARISON SCHEDULE

Year Ended December 31, 2012

2012

See the accompanying independent auditors' report.

30

ORIGINAL VARIANCEAND FINAL Positive 2011

BUDGET ACTUAL (Negative) ACTUALREVENUES

Charges for Services 402,500$ 406,010$ 3,510$ 386,062$ Sales and Use Taxes 52,595 107,553 54,958 101,046 Grants 320,000 408,054 88,054 41,946 Interest 600 581 (19) 427 Plant Investment Fees 10,428 248 (10,180) 14,259 Loan Proceeds - - - 4,000,000

TOTAL REVENUES 786,123 922,446 136,323 4,543,740

EXPENDITURES

Personnel 108,490 99,806 8,684 99,242 Operations 156,462 145,226 11,236 193,245 Capital Outlay 3,983,071 3,042,622 940,449 399,007 Depreciation Expense 115,000 26,666 88,334 23,347 Debt Service

Interest and Fiscal Charges 225,000 40,502 184,498 11,404

TOTAL EXPENDITURES 4,588,023 3,354,822 1,233,201 726,245

NET INCOME, Budget Basis (3,801,900)$ (2,432,376) 1,369,524$ 3,817,495

GAAP BASIS ADJUSTMENTSLoan Proceeds - (4,000,000) Capital Outlay 3,042,622 26,603

NET INCOME, GAAP Basis 610,246 (155,902)

NET POSITION, Beginning 780,849 936,751

NET POSITION, Ending 1,391,095$ 780,849$

TOWN OF NEDERLAND, COLORADO

SEWER FUNDBUDGETARY COMPARISON SCHEDULE

Year Ended December 31, 2012

2012

See the accompanying independent auditors' report.

31

ORIGINAL VARIANCEAND FINAL Positive 2011

BUDGET ACTUAL (Negative) ACTUALREVENUES

Charges for Services 347,541$ 341,661$ (5,880)$ 341,482$ Sales and Use Taxes 157,833 107,553 (50,280) 101,779 Grants - - - 60,000 Interest 3,000 6,487 3,487 5,506 Plant Investment Fees - - - 19,078

TOTAL REVENUES 508,374 455,701 (52,673) 527,845

EXPENDITURES

Personnel 109,290 103,823 5,467 100,527 Operations 154,105 147,408 6,697 114,670 Capital Outlay 164,500 112,486 52,014 624,988 Depreciation Expense 230,000 191,203 38,797 157,288 Debt Service

Interest and Fiscal Charges 147,405 54,898 92,507 32,795

TOTAL EXPENDITURES 805,300 609,818 195,482 1,030,268

NET INCOME, Budget Basis (296,926)$ (154,117) 142,809$ (502,423)

GAAP BASIS ADJUSTMENTS Capital Outlay 112,486 624,988

NET INCOME, GAAP Basis (41,631) 122,565

NET POSITION, Beginning 2,578,368 2,455,803

NET POSITION, Ending 2,536,737$ 2,578,368$

2012

TOWN OF NEDERLAND, COLORADO

WATER FUNDBUDGETARY COMPARISON SCHEDULE

Year Ended December 31, 2012

See the accompanying independent auditors' report.

32

COMPLIANCE

600 17TH STREET SUITE 2800 SOUTH • DENVER, COLORADO 80202 •TEL 303.634.2259 •FAX 303.496.4631

Honorable Mayor and Members of the Board of Trustees Town of Nederland Nederland, Colorado

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Nederland, Colorado as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Town of Nederland, Colorado’s basic financial statements, and have issued our report thereon dated May 15, 2013. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of Nederland, Colorado's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Nederland, Colorado’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town of Nederland, Colorado’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of Nederland, Colorado 's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

34

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose

May 15, 2013

600 17TH STREET SUITE 2800 SOUTH • DENVER, COLORADO 80202 •TEL 303.634.2259 •FAX 303.496.4631

Honorable Mayor and Members of the Board of Trustees Town of Nederland Nederland, Colorado REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL

CONTROL OVER COMPLIANCE AS REQUIRED BY OMB CIRCULAR A-133

Report on Compliance for Each Major Federal Program We have audited the Town of Nederland, Colorado’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Town of Nederland, Colorado’s major federal programs for the year ended December 31, 2012. The Town of Nederland, Colorado’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town of Nederland, Colorado’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town of Nederland, Colorado’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Town of Nederland, Colorado’s compliance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of the Board of Directors, management, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

36

Opinion on Each Major Federal Program In our opinion, the Town of Nederland, Colorado complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2012. Report on Internal Control Over Compliance Management of the Town of Nederland, Colorado is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Town of Nederland, Colorado’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town of Nederland, Colorado’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose

May 15, 2013

37

TOWN OF NEDERLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2012

Summary of Auditor’s Results Financial Statements Type of auditor’s report issued: unqualified Internal control over financial reporting:

• Material weaknesses identified? yes x no

• Significant deficiency noted yes x none reported Noncompliance material to financial statements noted? yes x no

Federal Awards Internal control over major programs:

• Material weaknesses identified? yes x no

• Significant deficiency identified? yes x none reported Type of auditor’s report issued on compliance for major programs: unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? yes x no Identification of major program: 66.458 Wastewater Treatment Revolving Fund Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? yes x no Findings Related to Financial Statements The audit of the financial statements did not disclose any significant deficiencies in internal control that would be considered a material weakness, and did not disclose any instances of noncompliance with requirements of certain provisions of laws, regulations, and grants that were material to those financial statements. Findings and Questioned Costs for Federal Awards The audit of federal awards did not disclose any significant deficiencies in internal control that would be considered a material weakness, and did not disclose any instances of noncompliance with requirements of certain provisions of laws, regulations, and grants that were material to those federal awards.

Major TotalProgram ? CDFA # Expenditures

ENVIRONMENTAL PROTECTION AGENCYPassed through the State Department Of Public Health

and EnvironmentWastewater Treatment Revolving Fund Yes 66.458 2,000,000

Total Federal Financial Assistance 2,000,000$

NOTES1. Basis of Presentation

The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Authority and ispresented on the modified accrual basis of accounting. The information in this schedule is presented inaccordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations . Therefore, some amounts presented in this schedule may differ from amountspresented in or used in the preparation of the purpose financial statements.

TOWN OF NEDERLAND

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Year Ended December 31, 2012

See the accomanying independent auditors' report.

38

STATE COMPLIANCE

Financial Planning 02/01The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36

City or County: Boulder

YEAR ENDING :December 2012

This Information From The Records Of (example - City of _ or County of _ Prepared By: Eva ForbergerTown of Nederland Phone: 303 258-3266 x21

A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway

Taxes Taxes User Taxes Administration1. Total receipts available2. Minus amount used for collection expenses3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes

AMOUNT AMOUNTA. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 0 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 194,232 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 2. General fund appropriations 325,625 b. Snow and ice removal 31,994 3. Other local imposts (from page 2) 17,634 c. Other 19,851 4. Miscellaneous local receipts (from page 2) 78,337 d. Total (a. through c.) 51,845 5. Transfers from toll facilities 4. General administration & miscellaneous 19,574 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 266,638 a. Bonds - Original Issues 6. Total (1 through 5) 532,289 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 7. Total (1 through 6) 421,596 b. RedemptionB. Private Contributions c. Total (a. + b.) 0C. Receipts from State government 2. Notes: (from page 2) 110,693 a. InterestD. Receipts from Federal Government b. Redemption (from page 2) 0 c. Total (a. + b.) 0E. Total receipts (A.7 + B + C + D) 532,289 3. Total (1.c + 2.c) 0

C. Payments to State for highwaysD. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D) 532,289

Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total) 0 1. Bonds (Refunding Portion)B. Notes (Total) 0

A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation532,289 532,289 0

Notes and Comments:

FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page)

LOCAL HIGHWAY FINANCE REPORT

I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE

ITEM

III. DISBURSEMENTS FOR ROAD

V. LOCAL ROAD AND STREET FUND BALANCE

ITEM

II. RECEIPTS FOR ROAD AND STREET PURPOSES

IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par)

ITEM AND STREET PURPOSES

39 Nederland HUTF - CY12.xlsx

STATE:ColoradoYEAR ENDING (mm/yy):December 2012

AMOUNT AMOUNTA.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 71,644 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 17,634 g. Other Misc. Receipts 6. Total (1. through 5.) 17,634 h. Other 6,693 c. Total (a. + b.) 17,634 i. Total (a. through h.) 78,337

(Carry forward to page 1) (Carry forward to page 1)

AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 51,489 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 59,204 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 59,204 g. Total (a. through f.) 0 4. Total (1. + 2. + 3.f) 110,693 3. Total (1. + 2.g)

(Carry forward to page 1)

ON NATIONAL OFF NATIONALHIGHWAY HIGHWAY TOTALSYSTEM SYSTEM

(a) (b) (c)A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 0 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 0 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4) 0 0 0 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 0 0

(Carry forward to page 1) Notes and Comments:

FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL

II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL

LOCAL HIGHWAY FINANCE REPORT

ITEM ITEM

ITEM ITEM

40

Nederland – BOT Meeting 5/21/2013

Nederland Community Eco Pass Program

Background

The Nederland Eco Pass is a program that provides an Eco Pass free to all residents within the Nederland Library District. The Eco Pass provides unlimited usage of all regular RTD services on a per year basis (including regional/ local buses and light rail).This program has made the Eco Pass available to all Nederland residents for 2012 and 2013. Over the past two years, the program has been funded through a $108,800 federal Congestion Mitigation & Air Quality (CMAQ) grant administered by the Denver Regional Council of Governments (DRCOG) and $26,000 in matching funds from Boulder County's transit tax. The Eco Pass program is not eligible for further CMAQ grant funds. In order to continue the Nederland Eco Pass program in 2014 and beyond, the Town of Nederland will need to secure the funding necessary to do so. This memo outlines the benefits of the program to date as well as a couple of local funding options.

Program Benefits to Date

Over 1,200 Nederland town residents have picked up their Eco Pass thus far. Widespread availability of the Eco Pass to Nederland residents has meant better access to transit services for seniors, people with disabilities, students and low-income residents. As a result, ridership on the N bus route (Nederland to Boulder) has increased by 45% since 2011. The vehicle miles travelled in Nederland have also been reduced by more than 250,000 miles annually, which has meant less traffic congestion for town residents.

Note the N route in red – a strong increase in ridership when other routes were flat or decreased

Current Scenario The 2013 cost of the Nederland Eco Pass was $85,279, or roughly $70 per person for those who picked one up for the year. Given the success of the Nederland Eco Pass, Boulder County would like to help Nederland create a sustainable funding source to keep the program operating in 2014 and beyond.

0

100

200

300

400

500

600

ROUTES UNDER 800 Average Daily BoardingsBoulder County Routes Extending Outside City of Boulder limits

228

N

Y

GS

J

2011 2012Annual 2013

Nederland – BOT Meeting 5/21/2013 The cost of a Nederland Eco Pass for 2014 is unknown at this time, but RTD’s policy is to limit annual price increases to 10%. This would mean a maximum price of $93,807 for 2014, assuming the current geographical boundaries for the Eco Pass remain the same. For 2000 residents, this would be a cost of approximately $46 per resident for the year.

Potential Funding Options

To help the Board discuss potential funding options for continuing the Eco Pass program, we offer the following initial suggestions:

Property Tax– This would be an increase above the existing mill levy for a district, such as the library district. One benefit of this, is that people already know whether or not they are in the library district, so this is more intuitive than creating a new taxing district. It would also keep the program within its existing boundaries, which includes a number of residents adjacent to the town center. This is also one of the more secure, consistent funding sources available.

Local Improvement District – This would be taxed through property tax cycles, similar to library district funding. One strength of this method is its flexibility. It would allow the Town of Nederland to create its own boundaries for the Eco Pass district, if the Board wishes d to modify the current boundaries. This is also one of the more secure, consistent funding sources available.

Sales Tax – This would help shift some of the program cost away from Nederland residents to visitors to the town. However, sales tax funding can be more costly to administer than other taxing methods. In addition, this funding source is more volatile and unpredictable than other funding sources, and is affected by economic shifts.

Other districts- Creating a tax based upon some other Nederland billing district, such as a utility or water district. This type of tax would allow Nederland residents to pay in equal monthly installments throughout the course of the year. This funding method does require background work to show the relevance between the tax and the means through which it is collected.

For tax items that require a ballot measure, there are two alternatives available:

1. Inclusion with the Boulder County ballot – this ballot would be conducted in November 2013 as a Nederland specific topic.

2. A separate Nederland Town issue ballot conducted by the town in 2013 – this type of ballot can be conducted at any time during the year.

Recommended action

Given the success and popularity of the Nederland Eco Pass program, we recommend that the Board of Trustees consider and adopt an ongoing funding mechanism to continue the Eco Pass program into 2014 and beyond.

AGENDA INFORMATION MEMORANDUM NEDERLAND TOWN BOARD OF TRUSTEES

Meeting Date: May 21, 2013

Initiated By: /s/ Alisha Reis Dept: Administration Information Action _X Discussion ___

---------------------------------------------------------------------------------------------------------------------------------------------------

AGENDA ITEM:

Consideration of appointment of Mr. Jody Andrews to the Sustainability Advisory Board (SAB).

SUMMARY:

The SAB currently has one vacancy, which expires in 2014, and two reappointments that are up on June 1, 2013. HISTORY AND PREVIOUS BOARD ACTION:

The SAB had received an application dated May 13, 2013 from Jody Andrews. At their meeting on May 13, they recommended for Mr. Andrews to join the SAB. The SAB is asking that the Board appoint him.

QUESTION BEFORE THE BOARD:

Should Jody Andrews be appointed to the SAB? RECOMMENDATION:

The SAB has recommended appointment of Jody Andrews.

ATTACHMENTS:

1) Andrews application. 2) SAB Email, dated May 14, 2013

HighperformingDirectorwhodeliversresults.

AsDirectorattheAbuDhabiUrbanPlanningCouncil,Mr.Andrewsledan international and local team of professionals, consultants,contractorsanddevelopersinthedesignandconstructionofthemostsustainable capital in the Arab world – the new Capital City of theUnited Arab Emirates. At build‐out, the 11,000 acre Capital CitywillhaveatotalconstructionvalueofUSD55billionandbehometoupto370,000newresidents.Mr.AndrewsalsoledtheNationalHousingProgramprovidingcitizensin theEmirateofAbuDhabiwithnewhomes. Working closelywithAbu Dhabi’s development industry,Mr. Andrews delivered this highpriority government program with a total contract value of USD 7billion to produce over 12,000 sustainable new homes andinfrastructureforover70,000Emiraticitizens.

Uniqueandaccomplishedcareerbuiltoncompetence,professionalismandcollaboration.

Mr. Andrews is an accomplished senior executive with 25 years ofleadership, management, administrative and engineering experiencespanningfourcitiesandover50linesofbusiness.Formerly the second most senior municipal official in Canada, Mr.Andrews has extensive experience delivering complex projects fromwithin government.Heexcels atworkingwith government agencies,authorities, utilities, community groups, officials, private sector,developers, contractors, and non‐profit groups delivering complexmulti‐partyinitiatives,programs,andcapitalprojects.

ALeaderandanEngineer.

Mr.Andrewsdrawsonhisprofessionalengineeringskillsand25yearsofdiverseexperiencetoexcelatbuildingmajorcapitalprojectsundertight time frames while driving innovation, sustainability andexcellence.Hehasaproventrackrecordleadingandimplementinglarge,complexengineering and construction projects, partnership agreements,negotiations, tenders, contracts, project financing, and governmentprogramsandservicesundertighttimelines,andhasconsistentlybuiltandledcommittedandengagedteamsthatdeliverresults.

Director 2009‐2012CapitalDistrictDevelopmentLeadingSustainableArabCapitalAbuDhabi,UAE

DeputyCityManager2007‐2009VancouverCanada

ProjectManager 2005‐20092010OlympicVillage

resume JodyAndrews

NederlandColorado

resume JodyAndrews

NederlandColorado

2009–2012 DirectorCapitalDistrictDevelopment–LeadingSustainableArabCapitalUrbanPlanningCouncil,AbuDhabi,UAE

Mr.Andrewsbuiltaninternationalandlocalteamofprofessionals,consultantsandcontractorstodesignand build the new 11,000 acre Capital City of the United Arab Emirates, envisioned to be the mostsustainableArabcapital.Withabuild‐outvalueofUSD55billiontheCapitalDistrictwillbehometoupto370,000newresidents.Witha starting teamofnearly500,Mr.Andrews ledanextensive reviewoftheproject’s budget and phasing options. He developed the sustainability framework for the project andexecuted 15 contracts including extensive geotechnical investigation, ground improvement andconstructionof22kmofaccessroads.

Mr.AndrewsalsoledtheUrbanPlanningCouncil’sNationalHousingProgramprovidingEmiraticitizensinall three regions of the Emirate of Abu Dhabi with sustainable new homes.Working closely with AbuDhabi’sdevelopmentindustrythroughcompetitivetenders,Mr.Andrewsdeliveredthishighpriority,USD7billiongovernmentprogramtoproduce14,000finishedhomesforover70,000Emiraticitizens.

2007–2009 DeputyCityManager CityofVancouver,Canada

WorkingwiththeMayorandCityCouncilandreportingtotheCityManager,andalsocarryinghisroleasProjectManageroftheOlympicVillage,Mr.Andrewsandhisseniorteamofmanagerswasresponsibleforthemanagementofacityof600,000residents,anannualoperatingbudgetofCAD900million,acapitalplan of CAD520million,a staff of9,500, andover 50 linesofbusiness including planning,engineering,public works, infrastructure, utilities, housing, finance, IT, human resources, Fire, Police, subdivision,rezoning,permittingandothermunicipalservices.

2005–2009 ProjectManager2010VancouverOlympicVillage

CityofVancouver,CanadaMr. Andrews led the planning, design and construction of the new Southeast False Creek waterfrontcommunityfor16,000residentswithabuild‐outvalueofCAD6billion.Heledamulti‐disciplinaryteamof1,500 planners, architects, engineers, professionals, contract employees, consultants and contractorstoconstruct the 2010VancouverOlympic Village phase of the project.Declared themost sustainable andenergyefficientdevelopmentonearthin2010,theprojectachievedLEEDGoldandPlatinumdesignationandincludedanetzeroenergybuildingandlocalenergyutilityusingheatfromundergroundsewers.

2001–2005 AssistantCityEngineer CityofVancouver,CanadaAsAssistantCityEngineerforthelargestmunicipalEngineeringDepartmentinCanada,Mr.AndrewsledaDivisionof325staffandmanagedthecapitalandoperatingbudgetsoftheentireEngineeringDepartmenttotallingCAD180million.HeprovidedcorporateservicesfortheDepartment’s2,000employeesincludingprofessional recruitment, IT, administration, recordsmanagement, andmanaged theCity’sworksyards,asphaltandconcreteplants,equipmentfleetincludingPoliceandFire,andlumber,steel,andconstructionmaterials procurement. He led strategic change initiatives including centralizing Departmental supportservices,co‐chairedtheCity’sLabourManagementCommitteewiththeUnionCUPE15,andrepresentedtheCityduringCollectiveAgreementnegotiations.

VicePresidentHastingsInstitute

Diversity,humanrights,andliteracytrainingforlarge

corporationsandgovernment2007–2009

ChairVancouverNeighbourhoodEnergyUtility

EstablishedandchairedVancouver’sfirstenergyutility

drawingenergyfromundergroundsewers2007–2009

Co‐ChairVancouverDevelopmentPermitBoard

Co‐chairedVancouver’sregulatoryapprovalboardforallnewdevelopments2007‐2009

InternationalSpeakerCanada&UAEInfrastructure&SustainabilityForumDubai2011

BuildingSustainabilityConferenceAbuDhabi2011

AbuDhabiInvestmentForumLondon2009

WorldEco‐DevelopmentSummitBeijing2006

HarvardSustainabilityConference

HarvardUniversity2006

OfficialRepresentativeFederationofCanadian

MunicipalitiesSustainableEnergyMissiontotheUK2006

AdvisorGovernmentoftheRepublicof

Seychelles2011‐2012

GovernmentofOntarioandtheCityofToronto2006

resume JodyAndrews

NederlandColorado 1998–2001 AssistantDirectorofEngineering

CityofNewWestminster,Canada

As Assistant Director of Engineering, reporting to the Director,Mr. Andrews was responsible for managing the municipalEngineering Department of 105 staff and an annual budget ofCAD 22 million. He managed the Department’s administration,recruitment, training, budgets, facilities, transportation, fleet,roads,sewers,water,solidwasteandrecycling,IT,majorprojects,andpublicconsultation.He implementedorganizationalchangesto improve efficiency and service and was the City’s ChiefNegotiator for theProvinceofBritishColumbia’sSkyTrainRapidTransitLine.1988–1998 EngineeringLeadershipRoles CityofVancouver,CanadaMr. Andrews held progressively responsible leadership roles intheCityofVancouver’sEngineeringDepartmentover10years.In1996 he created Vancouver’s Neighbourhood TransportationBranchtomanagetrafficandtransportationonlocalstreets,andexpandedVancouver’sbicyclenetwork.In1992hedevelopedtheaward‐winning “Keep Greater Vancouver Spectacular” programwithTourismVancouver.In1990hewasthefoundingmemberofVancouver’s first Neighbourhood Integrated Service Team,workingwithEngineering,Police,Parks,Fire,Planning,andHealthdepartmentstosolvedifficultcommunityproblems.Theprogramwon a United Nations award for public service excellence andinnovation. In1989hedevelopedand implementedVancouver’sfirstResidentialRecyclingProgramacrosstheCity.1992 Registration,ProfessionalEngineer

AssociationofProfessionalEngineers&Geoscientists

1983–1988 BachelorofAppliedScience,CivilEngineeringUniversityofBritishColumbiaVancouver,Canada

contact jodyandrews@live.com

303‐258‐3563 1376ColdSpringRoad

NederlandCO80466

1

AGENDA INFORMATION MEMORANDUM NEDERLAND TOWN BOARD OF TRUSTEES Meeting Date: May 21, 2013 Prepared By: Alisha Reis Dept: Administration Information _______ Action ___ X ____ Discussion ______

______________________________________________________________________ AGENDA ITEM: Considerat ion of Proposal for Per formance Space at Decommissioned Lagoon Site SUMMARY: Attached for the Board’s review is an adjusted grading plan for the decommissioned north lagoon at the Wastewater Treatment Plant site west of Barker Reservoir. Project engineers Frachetti Engineering Inc. drafted the plan, based upon the blue line concept drawing offered by the Board after its May 7, 2012 meeting and first consideration of a new grading concept that would allow for the area to be used a potential performance space. The Board had requested information related to installation of a 20-foot diameter concrete pad that could serve as the basis for staging and other performance equipment, as well as access to power on the site for amplified music, lighted performance, and other similar events. Basic power is provided to the site in the form of an existing transformer at the south edge of the lagoon area, which once powered aerators and other machinery related to the lagoon-based treatment system. Pricing work for provision of electrical service to the concrete pad area, the pad itself, and ancillary work to the site is ongoing between the project engineers and contractors. It is anticipated that staff will convey these numbers to the Board at the meeting of May 21, 2013. According to engineer Bob Orsatti, “The new [grading plan] version has avoided the conflict with the newly constructed influent sewer, provides at-grade access to the existing electrical transformer at the old blower shed and has been adjusted to result in an7 approximate balance of earthwork on-site, eliminating the need to import or export additional fill material.” Given the lack of import material, it is anticipated that the change in grading plan will not result in additional cost for earthwork.

2

Additional considerations relate to zoning and building requirements. The Zoning Code requires off-street parking to be provided for any “new structure or at the time of enlargement or change of use of an existing structure” (NMC, Sec. 16-201). In the case of “commercial amusements” such as a public performance space, 1 parking space is required per 4 seats. Given the fluid nature of potential seating in this area, further review would be necessary to determine adequate parking. Additionally, much of the remaining needs – such as restroom facilities – would be reviewed as part of events applications for activities taking place at this site, given that staging and performance equipment are not a permanent part of this site as is the case with other outdoor performance spaces, such as Red Rocks or Estes Park amphitheaters. Special Events rules, for instance, require 1 bathroom facility (e.g. portable toilets) be provided per 100 attendees. QUESTION BEFORE THE BOARD:

1) Does the Board wish to approve the amended grading plan as attached? 2) Does the Board wish to pursue the project additions to support the public

performance space? HISTORY AND PREVIOUS BOARD ACTION: The Board directed staff at its May 7, 2013 meeting to move forward with plans for earthwork to fill in the lagoon in a manner possible for it to be used for the performance space concept. The Board also at that time set for public hearing review of the concept at its May 21, 2013 meeting, per code requirement for all new public facilities. Pricing considerations for new facilities also were requested.

A concept plan for the area west of Barker Reservoir was adopted by the Board on February 19, 2013, as part of the Gateway Park Area Concept Plan. The area included consideration for public performance space, though in a different configuration. Additionally, the accompanying Parks, Recreation, Open Space and Trails Master Plan called for additional public review for any development related to the adopted concept plan. More information related to the concept plan is available here: http://nederlandco.org/prosab-documents/ (the first three listed documents).

In 2011, the Board approved the initial Wastewater Treatment Plant engineering plans, including the lagoon grading plan.

ATTACHMENTS 1) Proposed grading plan for performance space 2) PROSAB memo/recommendation 3) Public comments received re: the concept

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FINANCIAL CONSIDERATIONS: The proposal was drafted with the goal of completing all earthwork with dirt available on the site. Thus, there is no additional cost to the project for any earthwork needed to complete the contouring to the attached specification. Costs will be incurred for the added concrete pad, electrical access, any line undergrounding and potential seating landscaping, such as rock installation. Staff will present preliminary pricing at Tuesday night’s meeting.

Greenwood Village,5325 S. Valentia Way

Colorado 80111Ph: (303) 300-3464Fx: (303) 300-3451

Memorandum Date: May 16, 2013 From: Parks, Recreation & Open Space Advisory Board To: Town of Nederland Mayor and Board of Trustees Re: Proposed Amphitheater near Barker Reservoir

At its May 16th meeting, PROSAB reviewed what details have been made public of the proposal for a gateway park amphitheater at the location of the northern lagoon.

Members in attendance recommended that the Board of Trustees proceed with cleaning up the existing sewer lagoon but that it follow the Nederland Planning Process to proceed with the planning of the amphitheater project to ensure that the proposed project is congruent with other elements of the gateway park area and that all pertinent questions are answered.

From: Alisha ReisTo: Michele MartinSubject: FW: amphitheater designDate: Friday, May 17, 2013 10:19:17 AM

Did we get this comment in with the public? Alisha Reis Town Administrator Town of Nederland 45 W. 1st St., PO Box 396 Nederland, CO 80466 alishar@nederlandco.org 303-258-3266

From: Joe Gierlach [mailto:joeg@nederlandco.org] Sent: Wednesday, May 15, 2013 1:29 PMTo: Alisha ReisSubject: Fwd: amphitheater design

Joe Gierlach, Mayor Town of Nederlandwww.nederlandco.orgwww.nedermayor.blogspot.com

Begin forwarded message:

From: "David Hardy" <david@planetmind.net>Date: May 15, 2013, 10:55:50 AM MDTTo: joeg@nederlandco.orgSubject: amphitheater design

Joe,

Thanks for your efforts in pursuing the waste-water pond-to-amphitheater idea. While I love the idea (I think many people do), I think it's important that the design is conducive to actually having events there. The design in the meetingpacket seems to have the area sloping *away* from the stage, which really doesn't work for audiences viewing the stage. I think a flat area would be far better, with a slightly raised stage pad. It might also make sense to have a flatwalkway, dividing the western berms, for access to the stage area, so that equipment doesn't have to be loaded over the berms. Lastly, I think a rectangular stage pad might be more functional.

Attached is a sketch of the idea.

David~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~David HardyPlanetmind InternetworksNedernet, Inc.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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AGENDA INFORMATION MEMORANDUM NEDERLAND TOWN BOARD OF TRUSTEES Meeting Date: May 21, 2013 Prepared By: Alisha Reis Dept: Administration Information _______ Action ___X____ Discussion ______

______________________________________________________________________ AGENDA ITEM: Consideration of Request for Fee Waiver for Old Timers’ Days/Parade and Miners’ Days events (Nederland Area Historical Society) SUMMARY: Attached are two requests by the Nederland Area Historical Society for fee discounts related to two events – Old Timers’ Days & Parade and Miners’ Days. The Historical Society is a local not-for-profit organization, fitting the parameters of a Category I organization, per the adopted discount/fee waiver policy: “Not-for-profit organizations whose mission and purpose is primarily to serve Town residents broadly through social, cultural, and educational programs…” In reviewing the requests, Town staff recognizes the “Extenuating Factor” met – heritage education and community pride as intangible benefits realized by the town via this event (Criteria No. 2). Additionally, event organizers are encouraged to make use of local recycling and composting facilities to reduce event waste as much as possible (Criteria No. 2). Both events have been operating for many years. The Old Timers’ event occurs July 27, with a public parade and picnic, incorporated into Miners’ Days. Miners’ Days, a display of historical and current mining paraphernalia and competitions, occurring July 27-28, is celebrating its 52nd year. QUESTION BEFORE THE BOARD: Does the Board wish to grant the requested fee discounts for these events? RECOMMENDATIONS: Town staff recommends the following related to these requests, as contained in the application:

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1) Old Timers’ Days & Parade – Recommend full discount for this community-based event with no extraneous demand upon Town resources; recommend recycling and compost as much as possible for associated picnic waste.

2) Miners’ Days – Recommend a 50 percent discount on special events fees, given the fund-raising nature of the event and the recommended 100 percent fee waiver for the associated Old Timers’ events. The resulting 50 percent discount would result in remaining fees of $137.50.

ALTERNATIVES:

1) Decline to approve the recommended discounts 2) Offer alternative discounts

ATTACHMENTS: 1) Fee Discount Request: Old Timers’ Days & Parade 2) Fee Discount Request: Miners’ Days

FINANCIAL CONSIDERATIONS: See above discussion.

AGENDA INFORMATION MEMORANDUM NEDERLAND TOWN BOARD OF TRUSTEES

Meeting Date: M a y 2 1 , 2013 Initiated By: Alisha Reis Dept: Administration Information Action X Discussion

AGENDA ITEM: Consideration of facility agreement for Peak to Peak Music Education Association (PPMEA) – NEDFEST Event. SUMMARY: Kristen McFarland, secretary of PPMEA, has submitted an application for a Special Event permit, Chipeta Park Pavilion rental, Noise Variance permit, and Special Event Liquor License permit for this event, which is scheduled to take place on August 23-25, 2013. Proper noticing was posted for the Special Event Liquor License permit. There was no opposition noted. HISTORY AND PREVIOUS BOARD ACTION: This will be the 15th annual NEDFEST event and the first year for a facility agreement. The Town has introduced the use of a facility agreement to clarify Town and organizer responsibilities when a large event takes place on Town property. It is a legally-enforceable document that clearly outlines the expectations of the Town and the organizers with regard to the facilities being used, as well as the insurance and deposit requirements. Staff feels that use of this document will be mutually beneficial and cut down on last-minute or after-the-fact confusion about what was agreed upon. A Technical Review Committee meeting took place on April 11. Staff and Fire have reviewed and approved the requests for permits. Conditions, as well as requirements from the Special Event permit application, are outlined in the agreement. One area specifically called out in this agreement is the camping section. This will be the 8th year of camping for the event. QUESTION BEFORE THE BOARD: Should the Town approve the facility agreement for PPMEA to hold their NEDFEST event? Should the Town modify the agreement? ATTACHMENTS: 1) Facilities Agreement between the Town and PPMEA

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PUBLIC PROPERTY LEASE AGREEMENT Peak to Peak Music Education Association – NEDFEST Event

August 23-25, 2013

THIS AGREEMENT (“Agreement”) is made by and between the TOWN OF NEDERLAND, a Colorado municipal corporation whose address is 45 W. First St., Nederland, CO 80466, (“Town”), and PEAK TO PEAK MUSIC EDUCATION ASSOCIATION, (“PPMEA”), a nonprofit corporation whose address is PO Box 3280, Nederland, CO 80466. This Agreement is effective on the date indicated below. WHEREAS, PPMEA has scheduled or plans to schedule a commercial entertainment event in Town to be conducted, in whole or in part, on certain public property, which event has been determined by the Town to have the potential to significantly and negatively impact Town residents, businesses and visitors by imposing a temporary and unusual demand on Town resources, facilities and personnel, including but not limited to Town parks, recreational facilities and streets, Public Works staff and public safety/first responder personnel( “Event”); and WHEREAS, the Town Board of Trustees (“Board”) recognizes the potential positive impact the Event may also have on Town residents and businesses, through the generation of Town visibility, civic pride, cultural and recreational opportunities and sales tax revenue; and WHEREAS, such potential positive impacts are determined by the Board to be of value to the public only if the potential burdens to be placed on public resources by the Event are managed in such a way that does not compromise the public health, safety and welfare; and WHEREAS, PPMEA recognizes that the Event may significantly impact the public health, safety and welfare, and desires the Town’s cooperation in preparing for and managing such impacts; and WHEREAS, the Parties therefore wish to set forth the terms and conditions of PPMEA’s use of Town property in association with the Event, as further set forth herein. NOW, THEREFORE, in consideration of the mutual promises, covenants, and agreements of the Parties and other good and valuable considerations, the sufficiency and adequacy of which are hereby acknowledged by the Parties, the Parties hereto agree as follows. 1. Lease of Property and the Event.

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A. Dates. The Event will be held on the Leased Property, as defined by Section 1.C. below, on the following dates and times:

Dates: Friday, August 23, 2013 through Sunday, August 25, 2013. Time: Beginning Friday, 5:30 p.m. / Ending Sunday, 9:30 p.m.

B. Term. The term of this lease shall commence 24 hours prior to the date of

the first day of the permitted occupancy of Town-owned property as described in 1.A above and terminate 24 hours following the conclusion of the Event. These times may be amended as necessary to account for weather events.

C. Leased Property. The Town shall provide PPMEA use of the following

public property for the identified term which is under the ownership and control of the Town of Nederland for the purposes permitted pursuant to this Agreement and no other (the "Leased Property"):

CHIPETA PARK (1) All of Chipeta Park(“Chipeta Park”)

Chipeta Park is generally illustrated on the attached Exhibit A. The use of Chipeta Park shall be limited to uses and attendee numbers provided by this Agreement and the Event’s Special Event Permit issued by the Town of Nederland.

GUERCIO MEMORIAL BALLFIELD (2) All of Guercio Memorial Ballfield (“Guercio Field”)

Guercio Field is generally illustrated on the attached Exhibit B. The use of Guercio Field shall be limited to uses and attendee numbers provided by this Agreement and the Event’s Special Event Permit issued by the Town of Nederland.

2. Leased Property Management Requirements.

(A) Event Locations and Parking Plan. PPMEA shall provide to the Town an Event Locations and Parking Plan for the Leased Property in both text and graphic format which includes a schedule of activities and illustrates and describes the use and location of all proposed structures, gates, fences, portable restroom facilities, waste receptacles, and other structures or facilities proposed for use, including camping areas, during the Event by PPMEA on the Leased Property. Such Event Locations and Parking Plan shall also include an illustration of proposed routing of traffic in the area of

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the Leased Property and illustrate the primary pedestrian routes to and from the various event locations. The Event Locations and Parking Plan shall be provided to the Town Clerk not less than 45 calendar days before the first day of the scheduled event.

(B) Debris and Trash. PPMEA shall take all steps necessary to control and

manage dust, and limit and manage trash, litter, and debris, on the Leased Property caused by persons using, visiting, or occupying the Leased Property during the term of the Event.

(C) Sanitation and Waste Management Receptacles. PPMEA shall provide

portable toilets and waste management (trash/recycling/composting) receptacles on the Leased Property, parking areas, and the seating areas. The Town Clerk shall determine the appropriate number and location of such toilet facilities which will be adequate to serve the anticipated number of persons in attendance at the Leased Property; provided that, a minimum of one (1) portable toilet shall be provided for every one hundred (100) persons scheduled or planned for attendance at the event. PPMEA shall contract for trash/recycling/compost collection and removal services to be conducted throughout the duration of the Event and such service shall be provided by a licensed Colorado professional collection and disposal service or company. All portable toilet facilities shall be placed by PPMEA in consultation with the Public Works Manager and in accordance with the Event Locations and Parking Plan. If requested, a copy of a sanitation service contract shall be provided to the Town prior to 5:00 p.m. August 16, 2013 and all toilet and waste management receptacles shall be in place no later than 5:00 p.m. on August 22, 2013. PPMEA or its contractor shall remove all waste material generated by the Event attendees in toilets and waste receptacles and deposit such materials in accordance with all local and state laws. All toilet and waste receptacles shall be removed from the Leased Property by 5:00 p.m. on August 26, 2013 or such other time approved by the Town Administrator.

(D) Leased Property Security. On-site security and crowd management will be provided by PPMEA personnel at the Leased Property. Illegal or criminal acts observed by PPMEA personnel will be reported immediately to the Nederland Police Department personnel. PPMEA shall arrange for and shall maintain and provide radio communication between its own security force and the Nederland Police Department.

(E) Chipeta Park Restroom. The Public Works Manager or his designee shall initially inspect the facility prior to the Event. PPMEA shall maintain on a daily basis the cleanliness of such facility and keep the facility stocked with supplies throughout the dates of the Event. At the conclusion of the Event, PPMEA shall perform a final cleaning of the facility to a level of cleanliness equal to that existing at the time of the Director’s initial

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inspection. At the conclusion of the Event, the Public Works Manager or his designee shall inspect the facility and, if the cleanliness of such facility meets with the Manager’s approval, the Manager shall provide to PPMEA verbal or written confirmation of approval. Should facility not meet with Manager’s approval, PPMEA shall have 24 hours to address all of Manager’s concerns. Failure to do so shall authorize the Town to restore the facility as required and to recover its costs as provided in Section (J) below.

(F) Signage. PPMEA shall provide and maintain all necessary signs for the location of on-site parking, off-site parking, shuttle stops, “no trespassing” signs for property owners and properties adjacent to the Leased Property and directional signage directing people to the Event Location.

(G) Concessions. Concessions, stands, or concession operations shall be provided at the Leased Property only in accordance with the Event Locations and Parking Plan, and Special Event Permit. For purposes of this Agreement, “concession” shall include all and any form of business or activity, which provides goods or services for profit, barter, or trade.

(H) Local Ordinance Conformance. PPMEA shall manage the Leased Property and all other areas of the Town, which may be used by PPMEA for the Event in a manner that ensures conformance with all local ordinances and laws. PPMEA may contact the Town Administrator prior to the Event to arrange a meeting to discuss the particular ordinances and laws that may be applicable to the Event and its activities. Only to the extent authorized by this Agreement and by the Plan approved by the Town Administrator in accordance with this Agreement, the Board of Trustees grants permits for the conduct of the described activities as such permits may be required by Nederland Ordinance 688 (2011).

(I) Restoration of Leased Property. PPMEA shall clean, repair, and restore the Leased Property to a condition substantially identical to that existing on August 22, 2013, including the removal of all portable toilets and waste material from the Leased Property by 10:00 p.m. on August 27, 2013, unless otherwise provided by this Agreement. Such cleaning, repair, and restoration shall be deemed complete only where PPMEA has obtained the verbal or written confirmation of the Public Works Manager following the Manager or Manager designee’s inspection that the Leased Property has been cleaned and restored as required by this Agreement. Where the Town cleans, repairs and/or restores all or any part of the Leased Property, the Town may deduct the cost thereof from the Public Facility Use Deposit required by Section 8 of this Agreement. If such Deposit is inadequate to cover such cost, the Town shall submit its invoice of charges incurred to PPMEA and PPMEA shall pay all such charges in full within five (5) days of receipt of the invoice or seven (7) days of

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mailing, whichever is less. Failure to pay such charges shall permit the Town to deny any future application from PPEMA for the use of Town property, and to seek or institute any other remedy provided by law.

3. Town’s Obligations. (A) The Town shall provide to PPMEA use of the existing pavilion and picnic

tables within Chipeta Park. All picnic tables shall remain in place throughout the Event period. PPMEA may use straw to cover the wet and/or frozen ground at Chipeta Park. Such straw must be removed following the event, in accordance with Section 2(I) of this Agreement.

(B) The Town shall provide to PPMEA a staffing list, including Police

Department, Fire Department, Public Works, and Clerk’s Office staff, to PPMEA by August 16, 2013.

(C) The Town shall provide Public Works materials and services, including

barricades for street closures and wood chips for the First St. parking lot. The nature of and costs for these materials and services will be negotiated and paid in full in advance of the Event.

(D) The Town shall provide any other materials and services, as directed by

the Nederland Board of Trustees or the Nederland Town Administrator, based on negotiations with PPMEA.

4. Transportation and Traffic.

(A) Parking Management at Leased Property. PPMEA shall manage all access, ingress, and egress of vehicles at the Leased Property and shall, in particular, manage traffic so as not to interfere with reasonable access to public roads for residents of Nederland.

(B) Other Parking. PPMEA shall submit any written agreement(s) and, if any

agreement is not written, shall provide a written description of the general terms and conditions any agreement, between PPMEA and any third party, which involves the provision of parking services for the Event.

(C) Parking Supervision. PPMEA agrees to provide sufficient personnel to

supervise the designated parking areas.

5. Camping. (A) Camping Area. The Town will make available a portion of Chipeta Park for

the purpose of Family Camping for no more than 120 camping sites delineated by permit sold by event organizers. Area for camping is generally illustrated on attached Exhibit A (Chipeta Park plan). Camping

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conducted in strict accordance with the terms of this Agreement is explicitly approved by the Board of Trustees in accordance with Nederland Municipal Code (“Code”) Section 11-83(1). The approval of camping rendered hereby shall not constitute Town approval of any other conduct, whether undertaken in association with camping or otherwise, in violation of state or local law.

(B) Camping Management. PPMEA shall manage all camping use of Chipeta

Park, including sale and tracking of parking permits to not exceed the maximum allowable camping sites. Notwithstanding the definition of “camping” set forth in Code Section 11-81, tents and typical tent stakes are the only camping methods and materials approved for use within the park area pursuant to this Agreement. The use of a car, van, bus, travel trailer, tent trailer, pickup camper, pickup coach, boat, utility trailer or vehicle, truck, horse trailer or similar mobile structure, or any other device utilized for shelter for camping purposes under this Agreement is allowed only within the park’s designated parking area and any other camping use shall use constitute a violation of Code Section 11-83 as well as a violation of the terms of this Agreement.

(C) Camping Supervision. PPMEA agrees to provide sufficient personnel to

supervise the designated camping area. 6. Police Coverage/Financial Requirements.

(A) The Town will make its Police Department available to assist, as

requested by PPMEA and will arrange its police scheduling to provide such assistance, as it is reasonably able. Such availability shall be contingent upon the need for Police Department personnel to respond to calls for service not related to the Event and the necessary provision of other law enforcement functions and services.

(B) PPMEA will be responsible for police services required above and beyond

PPMEA’s own security and traffic control personnel for the purpose of traffic control and crowd management.

(C) PPMEA will coordinate any such additional requested law enforcement

services with the Nederland Chief of Police no later than forty-five (45) days prior to the Event.

(D) PPMEA will be financially responsible for any additional Police coverage

required due to the Event. Such amounts will be negotiated and the Boulder County Sheriff’s Office portion paid in full in no later than two weeks prior to the Event, and Town of Nederland portion paid in full no later than 30 days after the event. Failure to remit full payment shall result in immediate breach of this contract.

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7. Indemnification and Insurance.

(A) PPMEA shall indemnify the Town of Nederland, its officers, agents, contractors, insurance providers, and employees and hold the same harmless from and against any and all claims, actions, demands or liabilities, including attorney fees and court costs, for injury, death, damage or loss to person(s) or property arising out of or directly or indirectly resulting from PPMEA’s actions or omissions in connection with the use of the Leased Property and conduct of the Event .

(B) PPMEA shall procure and maintain a general liability insurance policy or

policies in the amount and form acceptable to the Town Administrator, sufficient to insure itself, and in addition the Town and its officers, agents and employees against all liabilities, claims, demands, actions or other obligations assumed by PPMEA pursuant to this Agreement. The minimum limits of such insurance policies or policies shall be $1,000,000.00 combined single limit and the general liability insurance policy shall expressly provide that it is primary insurance and that such coverage will apply prior to utilization of the Town of Nederland’s general liability coverage.

(C) PPMEA shall provide a certified copy of such policy and any endorsement

thereto not later than 30 days prior to the Event. (D) The parties understand and agree that the Town is relying on and does

not waive or intend to waive by any provisions of this Agreement, the monetary limitations provided by the Colorado Government Immunity Act, C.R.S. Section 24-10-101, et seq. as from time to time amended, or any other immunity that may be otherwise available to Town, its officers, agents or employees.

(E) PPMEA shall not be relieved of any liability, claims, demands or other

obligations assumed pursuant to this section by reason of its failure to procure or maintain insurance or by reason of its failure to procure to maintain insurance in sufficient amounts, duration or types.

8. Lease Fees and Deposit. In consideration of permitting exclusive event and parking privileges within public sites as identified in this Agreement, PPMEA shall pay all special event, police services, and public works fees in addition to a five thousand dollar ($5,000.00) Public Facility Use Deposit to the Town Clerk at the Nederland Town Hall, 45 W. First St., P.O. Box 396, Nederland, Colorado, 80466 no later than July 22, 2013, at 4:00 P.M. Failure to pay shall constitute a breach of this Agreement and cause for immediate termination hereof. The deposit may be used by the Town for its direct costs resulting from damage

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to the leased premises. The Town shall return any unused portion to PPMEA no later than September 25, 2013. 9. Additional Requirements.

(A) Except as otherwise provided for herein, the Town Administrator shall be

the sole representative of the Town responsible for administering the provisions of this Agreement.

(B) PPMEA shall abide by the Town Administrator’s directions and

requirements which are not inconsistent with this Agreement and which are necessary to protect the health, safety, and welfare of the residents of the Town.

(C) PPMEA understands and agrees that it and the conduct and use of the

Leased Property shall be subject to all applicable laws of the state of Colorado and the Town of Nederland.

(D) PPMEA shall pay the reasonable cost of repair for all damages to the

Leased Property caused by PPMEA’s actions or omissions in connection with the conduct of the Event and use of the Leased Property, including but not limited to damages within Chipeta Park, Guercio Field, public buildings, signs, parking lots, fencing, public lighting and other similar amenities, and landscaping. For illustrative purposes only, and in no way limiting the generality of the foregoing , “conduct of the Event” includes, but is not limited to:

• Sanitation waste and trash/recycling/compost disposal and clean-

up of Chipeta Park, Guercio Field, and all other sites described in this Agreement or in the Events Location and Parking Plan;

• Crowd management, restriction of access into public areas not part of the Event, control of pedestrian traffic between the Event and other areas within the Town;

• Noise control; • Parking and traffic control management; • Camping management; • Transportation services; • Compliance with this Agreement and compliance with additional

requirements of the Town Administrator. (E) This Lease Agreement shall not prohibit or prevent visitation or entry by

any Town employee or agent for the purpose of inspection, visitation, or other activity not inconsistent with this Agreement.

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(F) This Agreement shall bind the parties and extend to their respective representatives, successors and assigns, provided that PPMEA shall not assign this Agreement without the written consent of the Town.

10. Dispute Resolution The Parties will attempt to resolve any disputes concerning the interpretation or application of this Agreement through good faith negotiations. If such negotiations fail and time is of the essence concerning the particular dispute, the Parties agree to submit the dispute to a mediator, selected by the Parties, in an attempt to reach a mutually-acceptable resolution. The mediator’s decision shall be non-binding. Either Party dissatisfied with the decision of the mediator may pursue any action, resource or remedy available, at law or in equity. When time is not of the essence, either Party may seek any legal recourse available to it, at law or in equity, to resolve any dispute concerning this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth below.

DATED THIS ____ DAY OF ______________ , 2013.

TOWN OF NEDERLAND, COLORADO

By: Joe Gierlach, Mayor ATTEST: Michele Martin, Town Clerk

PEAK TO PEAK MUSIC EDUCATION ASSOCIATION By: NAME, President STATE OF COLORADO ) ) ss. COUNTY OF BOULDER ) The foregoing instrument was acknowledged before me this day of , 201___, by NAME, President of Peak to Peak Music Education Association.

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Witness my hand and official seal. My Commission Expires: . Notary Public

[Exhibit A – Chipeta Park set-up] [Exhibit B – Guercio Field set-up]

[Exhibit C – Parking Plan]

AGENDA I NFORM ATI ON M EM ORANDUM NEDERLAND TOWN BOARD OF TRUSTEES M eeting Date: M ay 21, 2013 I nit iated By: Carmen Beery Dept: Town Attorney’s Office

I nformation____X__ Discussion _____ Action _____

______________________________________________________________________ AGENDA I TEM : An Ordinance Adopt ing by Reference the 2010 Edit ion of the Model Traffic Code for Colorado, Adopt ing Amendments Thereto, Repeal ing All Ordinances In Confl ict Therewith, Providing Penalt ies For Model Traffic Code Violat ions and Making Conforming Amendments to Chapter 8 of the Neder land Municipal Code. SUM M ARY: Recent ly, the Municipal Court prosecutor asked i f Staff would be in support of updat ing the Town’s t raffic rules and regulat ions by adopt ing the latest version of the Model Traffic Code for Colorado (“MTC”): the 2010 edi t ion. The Town current ly has adopted, by reference, the 1995 edi t ion of the MTC. The MTC, promulgated by the Colorado Department of Transportat ion, general ly models and reflects state t raffic laws. I t is per iodical ly updated by CDOT and new edit ions are released to reflect changes in those laws. For example, the 2010 MTC prohibi ts text ing and dr iving, consistent wi th state law; this offense is not included in the 1995 edi t ion. The MTC has been updated three t imes since 1995: in 2003, 2009 and 2010. I n accordance with state law requirements concerning the adopt ion of codes by reference, this ordinance was introduced to the Board at i ts May 7 regular meet ing, at which t ime publ ic hear ing on the ordinance was scheduled for May 21. At your May 7 meet ing, you directed Staff to amend the draft ordinance in two ways: (1) to clar i fy the defini t ion of “gol f car t ,” including speci fying that only elect r ic gol f cars are permit ted on roadways; and (2) to author ize the Municipal Court to impose up to the new maximum fine amount author ized by state law for MTC violat ions in the event the Colorado legislature increased that amount . The legislature did adopt an increase in the maximum fines that may be imposed by municipal cour ts. These two changes are therefore reflected in the ordinance before you on May 21. H I STORY AND PREVI OUS BOARD ACTI ON: On May 7, the Board scheduled this ordinance for publ ic hear ing on May 21. RECOM M ENDATI ONS:

Staff recommends adopt ion of the ordinance. Both the Municipal Court Judge and Prosecutor have offered their posi t ive feedback and approval of the ordinance since your May 7 meet ing. Marshal Adler has also expressed his support of the ordinance. ALTERNATI VES: 1. Decline to adopt the ordinance and cont inue operat ing under the 1995 MTC and current fine schedule. 2. Adopt the ordinance, as presented. 3. Adopt the ordinance with speci fied amendments. ATTACH M ENTS: 1. Ordinance F I NANCI AL CONSI DERATI ONS: With the author izat ion of a higher maximum fine amount , the Municipal Court may generate increased revenues from t raffic violat ions. Such an increase is speculat ive, however, as the imposit ion of fines is ul t imately at the discret ion of the Judge, given al l the facts and circumstances of each case before her .

TOWN OF NEDERLAND, COLORADO

ORDINANCE NO. 717 AN ORDINANCE ADOPTING BY REFERENCE THE 2010 EDITION OF THE MODEL TRAFFIC CODE FOR COLORADO, ADOPTING AMENDMENTS THERETO, REPEALING ALL ORDINANCES IN CONFLICT THEREWITH, PROVIDING PENALTIES FOR MODEL TRAFFIC CODE VIOLATIONS AND MAKING CONFORMING AMENDMENTS TO CHAPTER 8 OF THE NEDERLAND MUNICIPAL CODE WHEREAS, pursuant to Part 2, Article 16, Title 31 of the Colorado Revised Statutes, the Town of Nederland, Colorado (“Town”) possesses the authority to adopt uniform codes by reference; and WHEREAS, pursuant to this authority, the Town previously adopted the 1995 edition of the Model Traffic Code for Colorado, as promulgated and published by the Colorado Department of Transportation; and WHEREAS, the Colorado Department of Transportation has prepared and published a 2010 edition of the Model Traffic Code for Colorado; and WHEREAS, the Town Board of Trustees (“Board”) recognizes the value of the Model Traffic Code for Colorado as providing a system of traffic regulation within the Town that is consistent with state law and with traffic regulations throughout the state and nation; and WHEREAS, a public hearing on this Ordinance was conducted and proper notice thereof given in accordance with C.R.S. § 31-16-203; and WHEREAS, certified copies of the 2010 edition of the Model Traffic Code for Colorado were filed with the Town Clerk at least fifteen (15) days prior to public hearing on this Ordinance and such code remains open to public inspection and purchase in accordance with C.R.S. § 31-16-206; and

WHEREAS, the Board wishes to adopt by reference the 2010 edition of the Model Traffic Code for Colorado, enact certain amendments thereto, provide penalties for Model Traffic Code violations and make conforming amendments to the Nederland Municipal Code; and

WHEREAS, the Board further finds that the Colorado General Assembly, by its adoption of House Bill 13-1060 as an emergency measure, effective upon the Governor’s signature on April 18, 2013, raised the maximum fine authorized to be imposed by municipal courts in Colorado, from one thousand dollars ($1,000.00) to two thousand six hundred fifty dollars ($2,650.00); and

WHEREAS, the Board determines that it is in the public interest to authorize the Nederland Municipal Court to impose up to the new maximum fine permissible under state law

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for violations of the 2010 MTC to further deter and punish violations of traffic laws within the Town.

NOW THEREFORE, BE IT ORDAINED by the Board of Trustees of the Town of Nederland, Colorado as follows: Section 1. The above and foregoing recitals are incorporated herein by reference and are adopted as findings and determinations of the Board of Trustees. Section 2. Section 8-1 of the Nederland Municipal Code is hereby amended as follows:

Sec. 8-1. Adoption. Pursuant to Title 31, Article 16, Parts 1 and 2, C.R.S., there is hereby adopted by reference the 1995 2010 edition of the Model Traffic Code for Colorado Municipalities, promulgated and published as such by the Colorado Department of Transportation, 4201 East Arkansas Avenue, Denver, Colorado 80222. The subject matter of the Model Traffic Code relates primarily to comprehensive traffic control regulations for the Town. The purpose of this Article and the Code adopted herein is to provide a system of traffic regulations consistent with state law and generally conforming to similar regulations throughout the State and the nation. The 1995 2010 edition of the Model Traffic Code is adopted as if set out at length. Section 3. Section 8-2 of the Nederland Municipal Code is hereby amended as

follows:

Sec. 8-2. Amendments.

The adopted code is subject to the following amendments:

(1) Section 109.5 of the adopted code is hereby amended to read in its entirety as follows:

“109.5. Low-speed electric vehicles.

(1)(a) A low-speed electric vehicle may be operated only on a roadway that has a speed limit equal to or less than thirty-five miles per hour; except that it may be operated to directly cross a roadway that has a speed limit greater than thirty-five miles per hour at an at-grade crossing to continue traveling along a roadway with a speed limit equal to or less than thirty-five miles per hour.

(b) Notwithstanding paragraph (a) of this subsection (1), a low-speed electric vehicle may be operated on a state highway that has a speed limit equal to forty miles per hour or cross a roadway

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with a speed limit equal to forty miles per hour to cross at-grade, if:

(I) Such roadway’s land width is eleven feet or greater;

(II) Such roadway provides two or more lanes in either direction; and

(III) The Department of Transportation determines, in consultation with the Town, upon the basis of a traffic investigation, survey, appropriate design standards, or projected volumes, that the operation of a low-speed electric vehicle on the roadway poses no substantial safety risk or hazard to motorists, bicyclists, pedestrians, or other persons.

(2) No person shall operate a low-speed electric vehicle on a limited-access highway.”

(2) Section 111 of the adopted code is hereby amended to read in its entirety as follows:

“111. Golf carts.

(1) A golf cart may be operated only on a roadway that has a speed limit equal to or less than thirty-five miles per hour; except that it may be operated to directly cross a roadway that has a speed limit greater than thirty-five miles per hour at an at-grade crossing to continue traveling along a roadway with a speed limit equal to or less than thirty-five miles per hour.

(2) It is unlawful to operate a golf cart in excess of the designated maximum lawful speed limit of the portion of the roadway upon which the golf cart is travelling or in excess of twenty-five miles per hour on any portion of roadway for which the designated maximum lawful speed limit is greater than twenty-five miles per hour.

(3) Any golf cart operated on a roadway shall display a triangular slow-moving vehicle emblem on the rear that conforms to the requirements of Section 234 of this Code.

(4) It is unlawful to operate a golf cart on a roadway carrying a greater number of persons or a greater maximum load than is specified or recommended by the manufacturer of such golf cart.

(5) It is unlawful to operate a golf cart on a roadway from any position other than a seated position in the designated driver’s seat or to permit any passenger of a golf cart in motion to ride in any

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position other than a seated position in a seat designed for passenger transport.

(6) It is unlawful for any person under the age of sixteen (16) years to operate a golf cart on any roadway. It is unlawful for any person to permit, aid or facilitate a person under the age of sixteen (16) years in the operation of a golf cart on any roadway.

(7) It is unlawful for any person who does not possess a valid driver’s license to operate a golf cart on any roadway.

(8) It is unlawful to operate a golf cart on any public sidewalk, trail, path or other public area upon which motor vehicles are prohibited, except as expressly permitted by the Town as indicated by posted signs.

(9) For purposes of this Section, “golf cart” means a four-wheeled electric vehicle that is designed for the purpose of transporting one or more persons and their golf equipment to play golf. Gas-powered golf carts are specifically excluded from this definition and are not permitted to operate on roadways within the Town.

(3) Section 113 of the adopted code is hereby amended to read in its entirety as follows:

“113. All-terrain vehicles.

(1) It is unlawful to operate an all-terrain vehicle on any roadway or upon any public sidewalk, trail, path or other public area upon which motor vehicles are prohibited, or upon any Town-owned property.

(2) For purposes of this section, “all-terrain vehicle” means and includes any self-propelled vehicle that is designed to travel on wheels or tracks in contact with the ground, designed primarily for use off of the public highways, and generally and commonly used to transport persons for recreational purposes. "All-terrain vehicle" does not include military vehicles, golf carts, vehicles designed and used to carry persons with disabilities, and vehicles designed and used specifically for agricultural, logging, or mining purposes.”

(4) Subsection 803(5) of the adopted code is amended to read in its entirety as follows:

"(5) No pedestrian shall cross at a state highway except at a marked crosswalk."

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(5) Pursuant to Subsection 1101(7) of the adopted code, the Town adopts the following maximum lawful speed limits by amending Subsection 1101(12) to read in its entirety as follows:

"(12) Speed laws applicable. The Board of Trustees has determined that the following prima facie speed limits should be applicable on the streets and roadways in the Town, and speed in excess of such limits shall be prima facie evidence that such speed is unlawful and a violation of the Article.

(a) Further, upon the basis of engineering and traffic investigations and determinations made by the Colorado Department of Transportation on streets which are state highways and traffic studies performed on Town streets, it is hereby declared that standard signs now erected give notice of the reasonable and true prima facie speed limit on those portions of said highways within the corporate limits of said Town. Accordingly, the following reasonable and prima facie speed limits for all streets within the Town shall be fifteen (15) miles per hour unless posted otherwise.

(b) Except when a special hazard exists that requires lower speed than is hereinabove set forth, the foregoing speed limits are reasonable and prima facie speed limits.

(c) Unless specifically provided to the contrary, all reference to "Town Limit" in Section 1101 shall mean the existing Town limit. It is the intention of the Board of Trustees that the provisions of Section 1101 shall apply to the entire area within the Town, including recently annexed territory and territory which may be annexed in the future upon the effective date of any annexation."

(6) Section 1701 of the adopted code is hereby amended to read in its entirety as follows:

“1701. Traffic offenses and infractions classified – penalties – penalty and surcharge schedule

(1) Except as specifically set forth in this Section 1701, it is a traffic infraction for any person to violate any of the provisions of this code. Any designation or classification of a violation in any other section of this code is inapplicable and expressly superseded by this Section 1701. Traffic infractions shall constitute civil matters. The Colorado Rules of Municipal Procedure shall apply to traffic infraction proceedings, except that no warrant for arrest shall be issued for the defendant's failure to appear when the only violation charged would constitute a noncriminal traffic infraction and the defendant's driver's

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license is issued by the State of Colorado or any other state which participates in the Interstate Nonresident Violator Compact, as codified at C.R.S. § 24-60-2101. Instead, the court may enter a judgment of liability by default against the defendant for failure to appear, assess any penalty and costs established by law and report the judgment to the appropriate state motor vehicle department which may assess points against the defendant's driver's license and may take appropriate action to ensure that the judgment is satisfied. There is no right to a trial by jury for any noncriminal traffic infraction.

(2) The following violations constitute criminal traffic offenses:

(a) A violation of section 1101 involving driving twenty-five (25) or more miles in excess of the lawful speed limit.

(b) A violation of section 1101(8)(a) involving driving twenty-five (25) miles or more in excess of the speed limit on any interstate highway.

(c) Violations of sections 1105 (speed contests), 1401 (reckless driving), 1402 (careless driving), 1409 (failure to show compulsory insurance), 1413 (eluding a police officer), 1703 (aiding and abetting a traffic offense) and 1903 (failing to stop for a school bus) of the Model Traffic Code, as amended.

(3) Notwithstanding any other provision of this code or of the Nederland Municipal Code to the contrary, traffic infractions as provided in this code shall be subject to the following maximum penalty: a fine of $2,650.00. Court costs as authorized by state and local law shall be added to the fine.

(4) Notwithstanding any other provision of this code or of the Nederland Municipal Code to the contrary, criminal traffic offenses as provided in this code shall be subject to the following maximum penalties: one hundred eighty (180) days imprisonment or a fine of $2,650.00 or both; except that any person who, at the time of commission of the offense, was less than eighteen (18) years of age shall be subject to a maximum penalty of a fine of $2,650.00. Court costs as authorized by state and local law shall be added to any penalty imposed.”

(7) Section 1709 of the adopted code is amended by the addition of new subsections (6) and (7) to read in their entirety as follows:

"(6) Payment of a penalty assessment notice by the person to whom the notice is tendered shall constitute an acknowledgment of guilt by such person of his or her violation of the offense stated in such notice.

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(7) Payment of the prescribed fine shall be deemed a complete satisfaction for the violation, and the Town, upon accepting the prescribed fine, shall issue a receipt to the violator acknowledging payment thereof if requested. Checks tendered and accepted and on which payment is received shall be deemed sufficient receipt."

Section 4. Section 8-5 of the Nederland Municipal Code, concerning penalties, is hereby repealed in its entirety an designated as “Reserved.”

Section 5. Any and all Ordinances or parts thereof in conflict or inconsistent herewith are, to the extent of such conflict or inconsistency, hereby repealed; provided, however, that the repeal of any such Ordinance or part thereof shall not revive any other section or part of any Ordinance heretofore repealed or superseded. Section 6. Should any one or more sections or provisions of this Ordinance be judicially determined invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance, the intention being that the various provisions are severable.

INTRODUCED, READ AND ORDERED PUBLISHED, and public hearing scheduled for May 21, 2013, at a Regular Meeting of the Board of Trustees of the Town of Nederland, Colorado, held on the 7th day of May, 2013.

_________________________________ Joe Gierlach, Mayor

ATTEST: _________________________________ Michele Martin, Town Clerk PASSED, ADOPTED AND APPROVED, after publication, following public hearing, at a Regular Meeting of the Board of Trustees of the Town of Nederland, Colorado, held on the 21st day of May, 2013 .

TOWN OF NEDERLAND, COLORADO

_________________________________ Joe Gierlach, Mayor

ATTEST: _________________________________

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Michele Martin, Town Clerk APPROVED AS TO FORM: _________________________________ Carmen Beery, Town Attorney