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HomeMy WebLinkAbout09-12-22 City Council MeetingAGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO September 12, 2022 7:00 p.m. This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th Avenue, Municipal Building, if allowed to meet on that date per COVID-19 restrictions. Some members of the City Council or City staff will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival 2. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on September 12, 2022). 3. Virtually attend and participate in the meeting through a device orphone: • Click here to join or provide public comments. • Or call +1-669-900-6833 with Access code: 849 9102 2303 Passcode: 914841 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Those requiring assistance, ASL, or translation service for languages other than English are asked to contact the Public Information Officer at 303-235-2877 with as much notice as possible. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF MEMBERS APPROVAL OF AGENDA CITY COUNCIL AGENDA: September 12, 2022 Page -2- PROCLAMATIONS AND CEREMONIES • 2022 Constitution Week – 16-22 of September PUBLICS’ RIGHT TO SPEAK a. Public may speak on any matter not on the Agenda for a maximum of 3 minutes under Publics’ Right to Speak. Please speak up to be heard when directed by the Mayor. b. Members of the Public who wish to speak on a Public Hearing item or Decision, Resolution, or Motion may speak when directed by the Mayor at the conclusion of the staff report for that specific agenda item. c. Members of the Public may comment on any agenda item in writing by noon on the day of the meeting at www.WheatRidgeSpeaks.org. Comments made on Wheat Ridge Speaks are considered part of the public record. CONSENT AGENDA NONE PUBLIC HEARINGS AND ORDINANCES ON SECOND READING 1. Council Bill No. 17-2022 – an ordinance amending Section 21-30 of the Wheat Ridge Code of Laws concerning performance warranty and guarantee for work in the public rights-of-way. ORDINANCES ON FIRST READING NONE DECISIONS, RESOLUTIONS, AND MOTIONS 2. Presentation and acceptance of 2021 Financial Audit 3. Motion to approve payment for Recreation Center boiler CITY MANAGER’S MATTERS CITY ATTORNEY’S MATTERS ELECTED OFFICIALS’ MATTERS 2022 Constitution Week Proclamation “We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.” — Preamble to the Constitution of the United States On September 17, 1787, the Continental Congress approved and 39 men signed the proposed Constitution for the United States of America, sending it to the states for ratification. This document, once ratified, created the federal government, established its only legitimate powers, and the boundaries within which said power could be exercised. As stated in Article VI, Clause 2 of the Constitution, it is the supreme law of the land, joined only by laws of the United States made in pursuance thereof and treaties made within the authority delegated to the United States. As required by Article VI, Clause 3 of the Constitution of the United States, all members of the legislatures and all executive and judicial officers of both the United States and the several States are bound by oath or affirmation to support the Constitution of the United States. However they are not the only ones with a duty to support the Constitution. Federalist Papers author and first Chief Justice of the Supreme Court, John Jay, exhorted “Every member of the State ought diligently to read and to study the constitution of his country, and teach the rising generation to be free. By knowing their rights, they will sooner perceive when they are violated, and be the better prepared to defend and assert them.” It is incumbent on the people to read and study the Constitution of our country, so that we may defend and assert our right. Now, Therefore, I, Bud Starker, Mayor of the City of Wheat Ridge, do hereby designate the week beginning September 16th, and ending September 22nd Two Thousand and Twenty Two as Constitution Week; and I invite the people of the City of Wheat Ridge to observe that week by taking Mr. Jay’s advice to read and study the Constitution of our country, and prepare ourselves to defend and assert our rights against all those who would infringe on them, whether foreign or domestic. __________________________ Bud Starker, Mayor ______________________________ Steve Kirkpatrick, City Clerk ITEM NO: 1 DATE: September 12, 2022 REQUEST FOR CITY COUNCIL ACTION TITLE: COUNCIL BILL NO. 17-2022– AN ORDINANCE AMENDING SECTION 21-30 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING PERFORMANCE WARRANTY AND GUARANTEE FOR WORK IN PUBLIC RIGHTS-OF-WAY PUBLIC HEARING ORDINANCES FOR 1ST READING (08/22/2022) BIDS/MOTIONS ORDINANCES FOR 2ND READING (09/12/2022) RESOLUTIONS QUASI-JUDICIAL: YES NO _____________________________ City Attorney City Manager ISSUE: Chapter 21 of the Code of Laws, entitled Streets and Sidewalks, regulates all construction and operation in public rights-of-way (ROW). The Chapter was comprehensively revised in 2020. This ordinance amends the required warranty period for public improvements from three years to two years. This is sufficient for the City’s needs and is consistent with the requirements of many other Denver area cities. PRIOR ACTION: Chapter 21 was comprehensively amended in 2020. City Council approved this ordinance on first reading on August 22, 2022. A motion was made by Councilmember Ohm, and seconded by Councilmember Stites, and was approved by a vote of 8 to 0. FINANCIAL IMPACT: No financial impact is anticipated with the proposed code change. BACKGROUND: Chapter 21 of the Code provides regulation and administration of construction and operation activities in public ways and public ROW, which includes any public street, alley, sidewalk, easement and any City-owned ROW or any other public property owned or controlled by the Council Action Form – ROW Performance Warranty and Guarantee September 12, 2022 Page 2 City and dedicated to public use. These provisions generally apply to repair work in the public ROW, often associated with underground utility installation/repairs. Section 21-30 within Chapter 21 provides for performance guarantee and warranty for work in public ROW. Currently, Section 21- 30 requires a three (3) year warranty on such work. Many other cities only require two (2) year warranties. The subdivision regulations in Article IV of Chapter 26, allow the City to require security and obtain a warranty for new public improvements associated with subdivisions. The time period for these warranties is subject to the discretion of the Director of Community Development through recordation of a Subdivision Improvement Agreement. Past and current practice has been to obtain a 2-year warranty after initial acceptance. The proposed ordinance would align current practice in the subdivision regulations with the codified requirement in Chapter 21, pertaining to ROW permits. Reducing the City’s requirement to two years still addresses the City’s needs while reducing cost burden on private businesses. RECOMMENDATIONS: Staff is recommending approval of the attached ordinance. RECOMMENDED MOTION: “I move to approve Council Bill No. 17-2022, an ordinance amending Section 21-30 of the Wheat Ridge Code of Laws concerning performance warranty and guarantee for work in public rights-of way, on second reading, and that it take effect 15 days after final publication.” Or, “I move to postpone indefinitely Council Bill No. 17-2022, an ordinance amending Section 21- 30 of the Wheat Ridge Code of Laws concerning performance warranty and guarantee for work in public rights-of way for the following reason(s) .” REPORT PREPARED/REVIEWED BY: Gerald Dahl, City Attorney Allison Scheck, Acting City Manager / Administrative Services Director ATTACHMENTS: 1. Council Bill No. 17-2022 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER COUNCIL BILL NO. 17 ORDINANCE NO. Series 2022 TITLE: AN ORDINANCE AMENDING SECTION 21-30 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING PERFORMANCE WARRANTY AND GUARANTEE FOR WORK IN THE PUBLIC RIGHTS-OF-WAY WHEREAS, the City of Wheat Ridge is a home rule municipality having all powers conferred by Article XX of the Colorado Constitution; and WHEREAS, pursuant to its home rule authority and C.R.S. § 31-23-101, the City, acting through its City Council (the “Council”), is authorized to adopt ordinances for the protection of the public health, safety or welfare; and WHEREAS, In the exercise of this authority, the Council has previously adopted Code of Laws concerning streets and sidewalks; and WHEREAS, the Council finds it necessary to amend Code Section 21-30 to adjust the required warranty period for such work. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Section 21-30 is amended to read as follows: Sec. 21-30. - Performance warranty/guarantee. (a) Any warranty made hereunder shall serve as security for the performance of work necessary to repair the public rights-of-way if the permittee fails to make the necessary repairs or to complete the work under the permit. (b) The permittee, by acceptance of the permit, expressly warrants and guarantees complete performance of the work in a manner acceptable to the city and guarantees all work done for a period of TWO (2)three (3) years after the date of probationary acceptance and agrees to maintain upon demand and to make all necessary repairs during the TWOthree- year period. This warranty shall include all repairs and actions needed as a result of: (1) Defects in workmanship; (2) Settling of fills or excavations; (3) Any unauthorized deviations from the approved plans and specifications; (4) Failure to barricade; ATTACHMENT 1 (5) Failure to clean up during and after performance of the work; (6) Any other violation of this chapter or the ordinances of the city. (c) The TWOthree-year warranty period shall run from the date of the city's probationary acceptance of the work. If repairs are required during the TWOthree-year warranty period, those repairs need only be warranted until the end of the initial TWOthree-year period starting with the date of probationary acceptance. It is not necessary that a new TWOthree-year warranty be provided for subsequent repairs after probationary acceptance. (d) At any time prior to completion of the TWOthree-year warranty period, the city may notify the permittee, in writing, of any needed repairs. Such repairs shall be completed within twenty-four (24) hours if the defects are determined by the city to be an imminent danger to the public health, safety and welfare. Non-emergency repairs shall be completed within thirty (30) calendar days after such notice. (e) The warranty described in this section shall cover only those areas of work undertaken by a permittee and not directly impacted by the work of any other permittee or the city. In the event that a portion of work warranted by permittee is subsequently impacted by work of another permittee or the city during the warranty period, that other permittee or the city shall assume responsibility for repair to the subsequently impacted section of rights-of- way. Section 2. Severability, Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 3. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTROCUDED, RED, AND ADOPTED on first reading by a vote of 8 to 0 on this 22nd day of August, 2022, ordered published in full in a newspaper of general circulation in the City of Wheat ridge, and Public Hearing and consideration on final passage set for September 12, 2022 at 7 p.m., as a virtual meeting and in the Council chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado if allowed to meet on that date due to COVID-19 restrictions. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of , 2022. SIGNED by the Mayor on this day of , 2022. Bud Starker, Mayor ATTEST: Stephen Kirkpatrick, City Clerk Approved as to Form Gerald E. Dahl, City Attorney First Publication: August 25, 2022 Second Publication: September 15, 2022 Effective Date: September 20, 2022 Published: Jeffco Transcript and www.ci.wheatridge.co.us ITEM NO: 2_ DATE: September 12, 2022 REQUEST FOR CITY COUNCIL ACTION TITLE: MOTION TO ACCEPT THE 2021 FINANCIAL STATEMENTS FROM CLIFTONLARSONALLEN PUBLIC HEARING ORDINANCES FOR 1ST READING BIDS/MOTIONS ORDINANCES FOR 2ND READING RESOLUTIONS QUASI-JUDICIAL: YES NO _____________________________ Administrative Services Director City Manager ISSUE: Section 10.15 of the Municipal Charter for the City of Wheat Ridge requires that an independent audit be performed annually of all City accounts. In 2021, the City received more than $750,000 in federal funds for Wadsworth Boulevard which also triggered a “single audit” of all federal funds. The CPA firm CliftonLarsonAllen (CLA) performed both the City and federal audits of the City’s financial statements for the year ended December 31, 2021. Once again this year, the City received an unqualified opinion indicating that the City’s financial statements are fairly and appropriately presented. A representative from CLA will be at the September 12, 2022 City Council meeting to present the 2021 Financial Statements to Council for acceptance. PRIOR ACTION: None FINANCIAL IMPACT: The contract for audit services with CLA is for an amount of $38,375 inclusive of the single audit for federal funds received and expended. BACKGROUND: The following conclusions were reached as a result of the audit and can be found under “Significant Audit Findings” in the attached financial statements: Council Action Form – 2021 Financial Audit September 12, 2022 Page 2 Accounting Policies 1. “No new accounting policies were adopted and the application of existing policies was not changed during 2021.” 2. “We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements proper period.” Accounting Estimates “We evaluated the key factors and assumptions used to develop these estimates in determining they are reasonable in relation to the financial statements taken as a whole.” Financial Statement Disclosures “The financial statement disclosures are neutral, consistent and clear.” Uncorrected Misstatements “Management did not identify and we did not notify them of any uncorrected financial statement misstatements.” Difficulties Encountered in Performing the Audit “We encountered no significant difficulties in dealing with management in performing and completing our audit.” Disagreements with Management “No such disagreements arose during our audit.” RECOMMENDED MOTION: “I move to accept the 2021 Financial Statements from CliftonLarsonAllen.” Or, “I move to deny the acceptance of the 2021 Financial Statements from CliftonLarsonAllen for the following reason(s) ___________________ REPORT PREPARED/REVIEWED BY: Mark Colvin, Finance Manager Allison Scheck, Acting City Manager/Administrative Services Director ATTACHMENTS: 1. 2021 Governance Communication 2. 2021 Financial Statements CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Wheat Ridge, Colorado We have audited the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wheat Ridge, Colorado (the City) as of and for the year ended December 31, 2021, and have issued our report thereon dated August 31, 2022. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, as well as certain information related to the planned scope and timing of our audit in our engagement letter dated May 20, 2022. Professional standards also require that we communicate to you the following information related to our audit. Significant audit findings or issues Qualitative aspects of accounting practices Accounting policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2021. We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Capital assets of the governmental activities are depreciated using the straight-line method over their estimated useful lives, which range from 3 to 50 years. Management’s estimate of claims liabilities, including claims payable and incurred but not reported (IBNR) claims, are estimated based on past experience and with the assistance of third- party actuaries, who utilize assumptions about inflation, recent claims, settlement trends, and other economic factors. Management’s estimate of the pollution remediation liability is based on estimates of the cost for remediation costs. The estimate was reduced to zero as of December 31, 2021 based on the No Action Determination approval received from the Colorado Department of Public Health and Environment dated June 21, 2021. ATTACHMENT 1 Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Page 2 Financial statement disclosures Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures. The financial statement disclosures are neutral, consistent, and clear. Significant unusual transactions We identified no significant unusual transactions. Difficulties encountered in performing the audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Uncorrected misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. Corrected misstatements None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with management For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit. Management representations We have requested certain representations from management that are included in the attached management representation letter dated August 31, 2022. Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Page 3 Supplementary information in relation to the financial statements as a whole With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. With respect to the combining and individual nonmajor fund financial statements, budgetary comparison schedule – Police Investigation Fund, budgetary comparison schedule – Municipal Court Fund, budgetary comparison schedule – Conservation Trust Fund, budgetary comparison schedule – Crime Prevention Fund, budgetary comparison schedule – Public Art Fund, budgetary comparison schedule – Equipment Replacement Fund, budgetary comparison schedule – Capital Projects Fund, balance sheet – Wheat Ridge Urban Renewal Authority, statement of revenues, expenditures, and changes in fund balance – Wheat Ridge Urban Renewal Authority, budgetary comparison schedule – Wheat Ridge Urban Renewal Authority, local highway finance report, and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated August 31, 2022. Other information included in annual reports Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of the listing of City Officials. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report. We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exits, we are required to describe it in our report. Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Page 4 Our auditors’ opinion, the audited financial statements, and the notes to financial statements should only be used in their entirety. Inclusion of the audited financial statements in a document you prepare, such as an annual report, should be done only with our prior approval and review of the document. You are responsible to provide us the opportunity to review such documents before issuance. * * * This communication is intended solely for the information and use of the Honorable Mayor, members of City Council and management of City of Wheat Ridge and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Greenwood Village, Colorado August 31, 2022 ATTACHMENT 2 CITY OF WHEAT RIDGE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2021 CITY OF WHEAT RIDGE TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2021 INTRODUCTORY SECTION  CITY OFFICIALS I  FINANCIAL SECTION  INDEPENDENT AUDITORS’ REPORT 1  MANAGEMENT’S DISCUSSION AND ANALYSIS 5  BASIC FINANCIAL STATEMENTS  STATEMENT OF NET POSITION 16  STATEMENT OF ACTIVITIES 17  BALANCE SHEET – GOVERNMENTAL FUNDS 18  RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION 19  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 20  RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 21  NOTES TO FINANCIAL STATEMENTS 22  REQUIRED SUPPLEMENTARY INFORMATION  BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 39  BUDGETARY COMPARISON SCHEDULE – OPEN SPACE FUND 40  BUDGETARY COMPARISON SCHEDULE – INVESTING 4 THE FUTURE FUND 41  NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 42  CITY OF WHEAT RIDGE TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2021 SUPPLEMENTARY INFORMATION  COMBINING BALANCE SHEET – NONMAJOR FUNDS 44  COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 45  BUDGETARY COMPARISON SCHEDULE – POLICE INVESTIGATION FUND 46  BUDGETARY COMPARISON SCHEDULE – MUNICIPAL COURT FUND 47  BUDGETARY COMPARISON SCHEDULE – CONSERVATION TRUST FUND 48  BUDGETARY COMPARISON SCHEDULE – CRIME PREVENTION FUND 49  BUDGETARY COMPARISON SCHEDULE – PUBLIC ART FUND 50  BUDGETARY COMPARISON SCHEDULE – EQUIPMENT REPLACEMENT FUND 51  BUDGETARY COMPARISON SCHEDULE – CAPITAL PROJECTS FUND 52  BALANCE SHEET – WHEAT RIDGE URBAN RENEWAL AUTHORITY 53  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – WHEAT RIDGE URBAN RENEWAL AUTHORITY 54  BUDGETARY COMPARISON SCHEDULE – WHEAT RIDGE URBAN RENEWAL AUTHORITY 55  STATE COMPLIANCE  LOCAL HIGHWAY FINANCE REPORT 57  FEDERAL COMPLIANCE – SINGLE AUDIT  INDEPENDENT AUDITORS’ 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 60  INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 62  SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 65  NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 66  SCHEDULE OF FINDINGS AND QUESTIONED COSTS 67  INTRODUCTORY SECTION CITY OF WHEAT RIDGE CITY OFFICIALS DECEMBER 31, 2021 (I) MAYOR Bud Starker CITY COUNCIL District 1 District 2 District 3 District 4 Judy Hutchinson Rachel Hultin Korey Stites Leah Dozeman Janeece Hoppe Scott Ohm Amanda Weaver Valerie Nosler Beck CITY CLERK Stephen Kirkpatrick MUNICIPAL JUDGE Christopher Randall CITY TREASURER Christopher Miller CITY ATTORNEY Gerald Dahl CITY MANAGER Patrick Goff DIRECTOR OF ADMINISTRATIVE SERVICES Allison Scheck DIRECTOR OF COMMUNITY DEVELOPMENT Kenneth Johnstone DIRECTOR OF PARKS & RECREATION Karen O’Donnell DIRECTOR OF PUBLIC WORKS Greg Knudson CHIEF OF POLICE Christopher Murtha FINANCE MANAGER Mark Colvin HUMAN RESOURCES MANAGER Michael Clasen PROCUREMENT MANAGER Whitney Mugford-Smith FINANCIAL SECTION CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  (1) INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Wheat Ridge, Colorado Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wheat Ridge, Colorado (the City), as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (2) Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (3) Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedule – General Fund, budgetary comparison schedule – Open Space Fund, and budgetary comparison schedule – Investing 4 the Future Fund be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedule – Police Investigation Fund, budgetary comparison schedule – Municipal Court Fund, budgetary comparison schedule – Conservation Trust Fund, budgetary comparison schedule – Crime Prevention Fund, budgetary comparison schedule – Public Art Fund, budgetary comparison schedule – Equipment Replacement Fund, budgetary comparison schedule – Capital Projects Fund, balance sheet – Wheat Ridge Urban Renewal Authority, statement of revenues, expenditures, and changes in fund balance – Wheat Ridge Urban Renewal Authority, budgetary comparison schedule – Wheat Ridge Urban Renewal Authority, local highway finance report, and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic 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 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements, budgetary comparison schedule – Police Investigation Fund, budgetary comparison schedule – Municipal Court Fund, budgetary comparison schedule – Conservation Trust Fund, budgetary comparison schedule – Crime Prevention Fund, budgetary comparison schedule – Public Art Fund, budgetary comparison schedule – Equipment Replacement Fund, budgetary comparison schedule – Capital Projects Fund, balance sheet – Wheat Ridge Urban Renewal Authority, statement of revenues, expenditures, and changes in fund balance – Wheat Ridge Urban Renewal Authority, budgetary comparison schedule – Wheat Ridge Urban Renewal Authority, local highway finance report, and schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (4) Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 31, 2022, on our consideration of the City’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 solely 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 the effectiveness of the City’s 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 the City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Greenwood Village, Colorado August 31, 2022 CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (5) As management of the City of Wheat Ridge, we offer this narrative overview and analysis of the financial activities of the City of Wheat Ridge for the fiscal year ended December 31, 2021. Please read it in conjunction with the City’s financial statements, which follow this section. Financial Highlights  The assets of the City of Wheat Ridge exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2021 by $127.2 million (net position). Of this amount, $32.1 million (unrestricted net position) may be used to meet the City’s ongoing obligations to residents and creditors.  At the close of fiscal year 2021, the City of Wheat Ridge’s governmental funds reported combined ending fund balances of $44.2 million, an increase of approximately $14.5 million compared to the prior year. Approximately $17.2 million (39%), is available for spending at the City’s discretion (unassigned fund balance).  At the end of the fiscal year 2021, unassigned fund balance for the General Fund was $17.2 million, or 46% of total General Fund expenditures.  General Fund actual revenues were $11.5 million more than final budgeted revenue for the fiscal year 2021 and actual expenditures were $3.3 million less than final budgeted expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Wheat Ridge’s basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements report information on all activities of the City and its component unit (Wheat Ridge Urban Renewal Authority). The statement of net position presents information on all of the City of Wheat Ridge’s assets, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Wheat Ridge is improving or deteriorating. The statement of activities presents information showing how the City of Wheat Ridge’s net position changed during fiscal year 2021. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses reported in this statement for some items will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (6) The government-wide financial statements include not only the City itself, but also the legally separate Wheat Ridge Urban Renewal Authority for which the City is financially accountable. The governmental activities of the City include general government, economic development, community development, police, public works, and parks and recreation. Fund financial statements. The fund financial statements provide more detailed information about the City’s most significant funds – not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes.  Some funds are required by State law (like the Police Investigation Fund).  The City Council establishes other funds to control and manage money for particular purposes (like the Public Art Fund) or to show that it is properly using certain taxes and grants (like the Conservation Trust Fund). The City has one type of fund: Governmental funds – All of the City’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps determine whether or not there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information on the subsequent pages is provided to explain the relationship (or differences) between them. Financial Analysis of the City as a Whole Net position. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Wheat Ridge, assets exceeded liabilities and deferred inflows of resources by $127.2 million at the close of the 2021 fiscal year. The largest portion of the City of Wheat Ridge’s net position (67%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Wheat Ridge uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City of Wheat Ridge’s net position (8%) represents resources that are subject to external restrictions on how they may be used (capital projects, open space and parks, police investigations, crime prevention activities, government access channel and emergency reserves). The remaining balance of unrestricted net position ($32.1 million) may be used to meet the City’s obligations to citizens and creditors. At the end of the current fiscal year, the City of Wheat Ridge is able to report positive balances in net position for the City as a whole. The same situation held true for the prior fiscal year. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (7) City of Wheat Ridge Net Position 2021 2020 Current and Other Assets 51,593,665$ 33,911,277$ Capital Assets 103,192,343 91,582,207 Total Assets 154,786,008 125,493,484 Other Liabilities 5,425,156 2,824,116 Long-Term Liabilities 20,848,939 23,836,303 Total Liabilities 26,274,095 26,660,419 Deferred Inflows of Resources 1,279,384 1,147,329 Net Position Net Investment in Capital Assets 85,081,923 74,896,281 Restricted 10,088,419 9,100,455 Unrestricted 32,062,187 13,689,000 Total Net Position 127,232,529$ 97,685,736$ Governmental Activities Changes in Net Position Governmental activities.  Current and other assets increased 52% in 2021 primarily due to an increase in cash and investments relating primarily to taxes and fees relating to a private-sector property development, federal funding, and a reimbursement of public infrastructure expenditures from the Clear Creek Crossing development.  Capital assets increased by 13% due to construction in process primarily due to the public infrastructure completed for the Clear Creek Crossing and the Wadsworth improvement projects.  Long-term liabilities decreased mostly due to payments of principal and interest on Sales and Use Tax Revenue Bonds Series 2017A.  Other Liabilities increased by 92% relating primarily to the timing of payment of construction related liabilities, the City’s year-end payroll, and use tax rebates. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (8) City of Wheat Ridge Changes in Net Position 2021 2020 REVENUES Program Revenues Charges for Services 7,193,155$ 4,774,318$ Operating Grants and Contributions 5,917,179 4,139,682 Capital Grants and Contributions 19,128,650 6,207,250 General Revenues Property Taxes 1,142,639 1,117,830 Sales Taxes 28,116,231 25,045,729 Use Taxes 7,395,649 5,936,103 Franchise Taxes 1,760,554 1,549,347 Lodgers Taxes 1,420,330 850,196 Other Taxes 807,265 741,664 Investment Income 29,275 410,583 Miscellaneous 922,675 710,835 Total Revenues 73,833,602 51,483,537 EXPENSES General Government 12,108,719 11,720,416 Economic Development 1,615,013 1,854,486 Community Development 3,958,895 2,875,501 Police 12,541,836 12,533,220 Public Works 5,205,295 5,100,882 Parks and Recreation 8,306,779 9,423,226 Interest on Long-Term Debt 550,272 613,695 Total Expenses 44,286,809 44,121,426 CHANGE IN NET POSITION 29,546,793 7,362,111 Net Position - Beginning of Year 97,685,736 90,323,625 NET POSITION - END OF YEAR 127,232,529$ 97,685,736$ General Government expenses include budgets for the City Treasurer, Legislative Services, Financial Services, City Manager, Economic Development, City Attorney, City Clerk’s Office, Municipal Court, Administrative Services, Human Resources, Purchasing and Contracting, Information Technology and Central Charges.  As a result of the strong financial recovery from the COVID-19 pandemic, Sales Tax, Use Tax, Property Tax, Franchise Tax, Lodgers Tax, and Other Taxes increased by 15% compared to 2020.  Charges for Services increased 51% compared to 2020 primarily relating to an increase in building permit and plan review fees relating to construction within the City’s boundaries. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (9)  Operating Grants and Contributions increased 43% as a result of the increase in federal funding received by the City from the Coronavirus State and Local Fiscal Recovery Funds under the American Rescue Plan Act in 2021 compared to the Coronavirus Relief Fund received during 2020.  Capital Grants and Contributions increased 208% relating to grant revenue for the Wadsworth improvement project and a reimbursement of public infrastructure expenditures from a private- public developer related to the Clear Creek Crossing project.  Overall expenses remained consistent in 2021 compared to 2020, with less than a 1% increase. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 General Government Economic Development Community Development Police Public Works Parks and Recreation Expenses and Program Revenues - Governmental Activities Expenses Program Revenues Financial Analysis of the City’s Funds The focus of the City of Wheat Ridge’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Wheat Ridge’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of fiscal year 2021, the City of Wheat Ridge’s governmental funds reported combined ending fund balances of $44.2 million, an increase of $14.5 million in comparison with the prior year. Approximately 39% of this total amount ($17.2 million) constitutes unassigned fund balance, which is available for spending at the City’s discretion. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (10) The remainder of fund balance is restricted to indicate that it is not available for new spending because it has already been restricted or shown as nonspendable for:  Developer Loan Receivable $1,085,000  Prepaid Items $293,427  Capital Projects – Investing 4 the Future $5,096,313  Open space and parks $5,578,003  Police Investigations Fund $36,482  Crime Prevention Activities Fund $249,693  Government Access Channel $225,183  TABOR-mandated emergency reserves $1,900,000 or committed to:  Municipal Court Fund $93,804  Public Art Fund $370,313 or assigned to:  Capital Projects Fund $11,975,910  Capital Equipment Replacement Fund $83,860 The General Fund is the chief operating fund of the City of Wheat Ridge. At the end of fiscal year 2021, unassigned fund balance of the General Fund was $17.2 million, while total General Fund balance increased to approximately $20.7 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 46% of total General Fund expenditures, while total fund balance represents 55% of that same amount. The Open Space Fund was created in 1972 for the purpose of acquiring, developing and maintaining open space and park properties within the City of Wheat Ridge. Major projects in 2021 include Prospect Park Phase 2 and the purchase of a parcel of land for open space development. At the end of 2021, the Open Space Fund balance was $1.0 million higher than the prior year due to an increase in open space revenue received from Jefferson County and an increase in developer fees in 2021 compared to 2020. The Capital Projects Fund uses assigned funds to upgrade, maintain and expand the City of Wheat Ridge facilities, buildings, grounds, streets, parks and roads. Compared to 2020, capital outlays were $5.0 million higher in 2021 primarily due to on-going expenditures relating to the Wadsworth improvement project. Despite the increase in expenditures, fund balance of the Capital Projects Fund increased by $4.0 million due to increased federal funding and a reimbursement of public infrastructure expenditures from a public-private developer related to the Clear Creek Crossing project. While the City continues to receive revenues from the ½ of 1% sales and use tax rate increase in 2017, expenditures in the Investing 4 the Future Fund have decreased significantly due to the completion of project spending. The City of Wheat Ridge has six non-major funds that are restricted for, committed to, and assigned to a variety of purposes. The combined fund balance is $1.7 million, which is comparable to the fund balance of $1.6 million in 2020. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (11) General Fund Budgetary Highlights The original budget was amended by City Council for a total of $3,622,027 in supplemental budget appropriations throughout the 2021 fiscal year. These amendments can be briefly summarized as follows: Supplemental Budget Appropriations: Organized from largest to smallest expenditure  $1,600,000 allocated for increased building inspection costs  $1,134,656 allocated for an increase in FTE, vehicle purchases, and other operating expenditures that had been postponed due to 2020 COVID-related spending restrictions and re- evaluated mid-year 2021  $193,903 allocated for re-encumbrance of 2020 encumbered funds  $187,402 allocated for the construction of an outdoor fitness court  $150,000 allocated for the Lutheran Campus Master Plan  $62,000 allocated for the purchase of an additional police vehicle  $60,000 allocated for pop-up patios along 38th Avenue  $50,000 allocated for an FTE for building inspections  $33,534 allocated for an adjustment to worker’s compensation insurance  $31,845 allocated for an FTE for licensing technician  $30,000 allocated for the hazardous tree removal program  $24,000 allocated for election services  $22,500 allocated for the Race and Equity Task Force  $14,940 allocated for the Pioneer Sod House planning and assessment  $13,797 allocated for Richards-Hart Estate planning and assessment  $13,450 allocated for the short-term rental management program Actual tax revenue in the General Fund exceeded the final budgeted tax revenue by $5.7 million due to stronger than expected economic growth and recovery from the COVID-19 pandemic during 2021. Intergovernmental revenue exceeded budget by $4.2 million due to $4.1 million of Coronavirus State and Local Recovery Funds received during 2021 under the American Rescue Plan Act. The 2021 General Fund budget was adopted using $1,274,671 of the fund balance to balance the budget and $1.3 million of the fund balance was transferred to the Capital Improvement Program for capital projects. In addition, the final budget allocated $3.6 million of the fund balance for supplemental budget appropriations as summarized above. Capital Asset and Debt Administration Capital assets. The City of Wheat Ridge’s investment in capital assets for its governmental activities as of December 31, 2021 amounts to $103.2 million (net of accumulated depreciation). This investment in capital assets includes land, artwork, construction in progress, land improvements, buildings, vehicles, machinery and equipment, infrastructure, software and solar power capacity. Additional information on capital assets is provided in Note 4 of the financial statements. Major capital asset additions during the 2021 fiscal year totaled $15.4 million and included the following:  Land in the amount of $0.6 million o Contributed land parcels relating to right of way o Purchase of 4100 Gray Street for additional park space CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (12)  Construction in Progress in the amount of $13.8 million o Clear Creek Crossing o Wadsworth improvement project o City Hall on-going improvement projects o Public improvement projects  Buildings and Structures in the amount of $0.1 million o City Hall completed upgrades  Infrastructure in the amount of $0.1 million o 38th and Kipling Intersection o Bayou Ditch  Vehicles in the amount of $0.6 million o Four Police Patrol vehicles o Two Police Investigation vehicles o Two Administrative Services vehicles o One Community Development Inspections vehicle o One Active Adult Center vehicle o One Forestry bucket truck  Machinery and Equipment in the amount of $0.2 million o License plate reader o Server room equipment o Electric vehicle charging stations o Traffic signal upgrades o School playground equipment City of Wheat Ridge’s Capital Assets (Net of Depreciation) 2021 2020 Land 16,861,934$ 16,259,787$ Artwork 196,795 196,795 Construction in Progress 44,690,800 31,556,759 Land Improvements 16,678,220 17,424,154 Buildings 9,577,337 9,612,976 Vehicles 2,784,553 2,660,146 Machinery and Equipment 1,941,561 2,153,783 Infrastructure 9,911,148 11,094,906 Software 35,477 69,552 Solar Power Capacity 514,518 553,349 Total Capital Assets 103,192,343$ 91,582,207$ Long-term debt. At the end of the 2021 fiscal year, the City of Wheat Ridge had total long-term debt outstanding of $20.8 million. Of this amount, $3.5 million is due within one year. This total debt represents future bond principal payable from the Investing 4 the Future sales and use tax bond fund, future amortization of bond premium, compensated absences, claims payable, and lease payments for solar panels, which are expected to be liquidated primarily with revenues of the General Fund. Additional information for long-term debt is provided in Note 5 to the financial statements. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (13) Economic Factors and Next Year’s Budgets and Rates The City’s sales and use tax rate until December 31, 2016 was 3%. The rate then increased by .5% to 3.5% by authority of the November 2016 ballot measure. The mill levy was 1.830 mills. Both rates are among the lowest in the Denver metro area. Pursuant to the November 2016 ballot measure, the City issued $30,595,000 in bonds on May 2, 2017. These funds are managed in restricted revenue Fund 31, Investing 4 the Future.  The impact of the COVID-19 global pandemic was not as severe on the City’s revenues as originally predicted. The Wheat Ridge local economy performed well, resulting in continued growth in sales tax and development related revenues. Some areas of the City’s revenues, however, were severely impacted in 2020. In particular, lodgers’ taxes, a funding source for the General, Crime Prevention and Capital Improvement Program funds fell to almost 50% of budget in 2020 but rebounded to pre- pandemic levels in 2021. Recreation related charges were heavily impacted in 2020 and show improvement in 2021, but not full recovery. Similarly, interest income, as budgeted, showed sharp decreases in 2021 and is anticipated to grow in 2022. The City received 50% of its $7.9 million allocation from the American Rescue Plan Act in 2021 and will receive the second half in 2022 to assist in the recovery of the pandemic and respond to the negative economic impacts of COVID-19. Economic development at the Appleridge Shopping Center has resulted in the backfilling of the former Walmart location which closed in 2017. While the four retail tenants that took over the space in the fourth quarter of 2019 experienced a slow start due to the pandemic, recent activity shows strength in sales as the community emerges from the pandemic. This same shopping center has benefited from the arrival of Uncle Julio’s Hacienda Colorado, a large Starbucks location and a renovation of Applejack Wine and Spirits which is expected to result in incremental sales tax revenues. The Corners at Wheat Ridge redevelopment project is nearly complete with only a few vacancies. Unfortunately, in 2020, its major tenant, Lucky’s Market closed due to corporate financing. Negotiations are in progress to backfill the site but likely with a non-traditional retail tenant that will not generate as much sales tax as a grocer. The Clear Creek Crossing project entitlements and public finance agreement were approved in 2018 and infrastructure construction is complete. The first business on the new development, a Kum and Go gas station, opened in 2021 along with a multifamily housing development. A credit union is currently under construction and a hotel and fitness facility are under review with the City. The developer is finalizing the leasing plan for potential tenants to include retail, hospitality and entertainment but negotiations have slowed due to the pandemic. SCL Health broke ground in June 2021 on a multi-year construction project of a medical campus which will result in significant development-related revenues for the City. As the timing of the retail portion of the development is uncertain, no new sales tax revenues have been budgeted in 2021. The Longs Peak Metropolitan District (LPMD) reimbursed the City $9.8 million of approximately $10.1 million for the access ramp construction in 2021. LPMD will reimburse the City for the access ramp balance plus $542,038 for the environmental assessment expense in the coming years. The remaining reimbursement revenue has not been factored into the 2022 budget. Once the project is fully built out, sales tax, lodging, admissions and use tax revenue is projected to total $1.8 million annually. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 (14) Renewal Wheat Ridge (RWR), the City’s Urban Renewal Authority, issued tax-exempt bonds in November 2021 to fund various capital projects within the I-70/Kipling Corridors Urban Renewal Plan Area. The total bond issuance provided approximately $36 million in project funds to be used by RWR and the City to construct public improvements in the Plan Area. Projects funded through this program target the Plan Area’s transportation corridors and include the completion of the street, right-of-way, trail and pedestrian bridge infrastructure at the Wheat Ridge Ward commuter rail station; improvements to major intersections; development assistance for public improvements of commercial developments; and drainage improvements. The redeveloped Gold’s Marketplace site at 26th and Kipling has attracted several new businesses. Esters Neighborhood Pub, Queen City Collective Coffee, Em’s Ice Cream, Illegal Petes and Live Slow Brewing Co are all scheduled to open in 2022. The improvements have allowed existing tenants Cosmo’s Dog Bakery & Pet Supplies and BP Run Co to expand operations. Due to the pandemic, and in line with communities across the country, local small businesses are currently struggling to attract and retain hourly workers, in some cases slowing the opening of new businesses. The adopted 2022 fiscal year budget is $82.1 million. It includes a $44.26 million operating budget, a $3.9 million Investing 4 the Future capital projects budget, a $5.9 million Renewal Wheat Ridge Bond capital projects budget, a $21.8 million CIP budget and $6.4 million for special revenue budgets. Requests for Information This financial report is designed to provide a general overview of the City of Wheat Ridge’s finances for those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Administrative Services Director City of Wheat Ridge 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 (15) BASIC FINANCIAL STATEMENTS CITY OF WHEAT RIDGE STATEMENT OF NET POSITION DECEMBER 31, 2021 See accompanying Notes to Financial Statements. (16) Primary Component Government Unit Governmental Urban Renewal Activities Authority ASSETS Cash and Investments 36,572,994$ 3,479,287$ Restricted Cash and Investments 5,030,410 42,836,537 Accounts Receivable 4,588,524 193,051 Property Taxes Receivable 1,279,384 2,476,375 Intergovernmental Receivables 2,743,926 - Loans Receivable 1,085,000 - Prepaid Items 293,427 - Property Held for Resale - 330,299 Capital Assets, Not Being Depreciated 61,749,529 4,999,880 Capital Assets, Net of Depreciation 41,442,814 - Total Assets 154,786,008 54,315,429 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION LIABILITIES Accounts Payable 3,930,639 689,693 Accrued Liabilities 984,566 - Retainage Payable 18,849 - Refundable Deposits 355,471 - Unearned Revenues 67,860 - Accrued Interest Payable 67,771 241,671 Noncurrent Liabilities: Due Within One Year 3,487,481 1,062,697 Due in More than One Year 17,361,458 49,794,827 Total Liabilities 26,274,095 51,788,888 DEFERRED INFLOWS OF RESOURCES Property Taxes 1,279,384 2,476,375 NET POSITION Net Investment in Capital Assets 85,081,923 - Restricted for: Capital Projects 2,099,058 - Open Space and Parks 5,578,003 - Police Investigations 36,482 - Crime Prevention Activities 249,693 - Government Access Channel 225,183 - Emergencies 1,900,000 - Unrestricted 32,062,187 50,166 Total Net Position 127,232,529$ 50,166$ CITY OF WHEAT RIDGE STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Financial Statements. (17) Primary Component Operating Capital Government Unit Charges for Grants and Grants and Governmental Urban Renewal Functions/Programs Expenses Services Contributions Contributions Activities Authority PRIMARY GOVERNMENT Governmental Activities: General Government 12,108,719$ 624,411$ 4,193,045$ 34,209$ (7,257,054)$ -$ Economic Development 1,615,013 - - - (1,615,013) - Community Development 3,958,895 3,399,895 24,443 - (534,557) - Police 12,541,836 489,126 168,944 - (11,883,766) - Public Works 5,205,295 320,217 1,530,747 17,222,328 13,867,997 - Parks and Recreation 8,306,779 2,359,506 - 1,872,113 (4,075,160) - Interest on Long-Term Debt 550,272 - - - (550,272) - Total Primary Government 44,286,809$ 7,193,155$ 5,917,179$ 19,128,650$ (12,047,825) - COMPONENT UNIT Urban Renewal Authority 2,858,774$ -$ -$ -$ - (2,858,774) GENERAL REVENUES Property Taxes 1,142,639 1,835,231 Sales Taxes 28,116,231 905,899 Use Taxes 7,395,649 - Franchise Taxes 1,760,554 - Lodgers Taxes 1,420,330 - Other Taxes 807,265 - Investment Income 29,275 4,773 Total General Revenues 41,594,618 2,988,282 CHANGE IN NET POSITION 29,546,793 129,508 Net Position - Beginning of Year 97,685,736 (79,342) NET POSITION - END OF YEAR 127,232,529$ 50,166$ Net (Expense) Revenue and Change in Net Position CITY OF WHEAT RIDGE BALANCE SHEET – GOVERNMENTAL FUNDS DECEMBER 31, 2021 See accompanying Notes to Financial Statements. (18) Other Open Capital Investing 4 Governmental General Space Projects the Future Funds Totals ASSETS Cash and Investments 17,997,523$ 4,494,304$ 12,323,394$ -$ 1,757,773$ 36,572,994$ Restricted Cash and Investments - - - 5,030,410 - 5,030,410 Accounts Receivable 3,942,365 - 29,371 572,732 44,056 4,588,524 Property Taxes Receivable 1,279,384 - - - - 1,279,384 Intergovernmental Receivables 313,217 446,110 1,984,599 - - 2,743,926 Loans Receivable 1,085,000 - - - - 1,085,000 Prepaid Items 293,427 - - - - 293,427 Total Assets 24,910,916$ 4,940,414$ 14,337,364$ 5,603,142$ 1,801,829$ 51,593,665$ LIABILITIES Accounts Payable 1,533,097$ 242,411$ 1,595,233$ 506,829$ 53,069$ 3,930,639$ Accrued Liabilities 949,958 18,852 - - 15,756 984,566 Retainage Payable - - 18,849 - - 18,849 Refundable Deposits 355,471 - - - - 355,471 Unearned Revenues 67,860 - - - - 67,860 Total Liabilities 2,906,386 261,263 1,614,082 506,829 68,825 5,357,385 DEFERRED INFLOWS OF RESOURCES Property Taxes 1,279,384 - - - - 1,279,384 Grants - - 747,372 - - 747,372 Total Deferred Inflows of Resources 1,279,384 - 747,372 - - 2,026,756 FUND BALANCES Nonspendable: Loans Receivable 1,085,000 - - - - 1,085,000 Prepaid Items 293,427 - - - - 293,427 Restricted for: Capital Projects - - - 5,096,313 - 5,096,313 Open Space and Parks - 4,679,151 - - 898,852 5,578,003 Police Investigations - - - - 36,482 36,482 Crime Prevention Activities - - - - 249,693 249,693 Government Access Channel 225,183 - - - - 225,183 Emergencies 1,900,000 - - - - 1,900,000 Committed to: Municipal Court - - - - 93,804 93,804 Public Art - - - - 370,313 370,313 Assigned to: Capital Projects - - 11,975,910 - - 11,975,910 Equipment Replacement - - - - 83,860 83,860 Unassigned 17,221,536 - - - - 17,221,536 Total Fund Balances 20,725,146 4,679,151 11,975,910 5,096,313 1,733,004 44,209,524 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 24,910,916$ 4,940,414$ 14,337,364$ 5,603,142$ 1,801,829$ 51,593,665$ CITY OF WHEAT RIDGE RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2021 See accompanying Notes to Financial Statements. (19) Amounts report for governmental activities in the statement of net position are different because: Total Fund Balances of Governmental Funds 44,209,524$ Capital assets used in governmental activities are not current financial resources, and therefore, are not reported in governmental funds. 103,192,343 Because the focus of governmental funds is on short-term financing, some assets will not be available to pay for current-period expenditures. Those assets (for example, receivables) are offset by deferred inflows of resources in the governmental funds and thus are not included in fund balance. Intergovernmental Revenues 747,372 Long-term liabilities and related items are not due and payable in the current year, and therefore are not reported in governmental funds. Bonds Payable (17,700,000) Bond Premium (975,270) Capital Lease Payable (532,251) Accrued Compensated Absences (1,355,501) Claims Payable (285,917) Accrued Interest Payable (67,771) Total Net Position of Governmental Activities 127,232,529$ CITY OF WHEAT RIDGE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Financial Statements. (20) Other Open Capital Investing 4 Governmental General Space Projects the Future Funds Totals REVENUES Taxes 34,885,124$ -$ 270,435$ 5,033,090$ 454,019$ 40,642,668$ Licenses and Permits 2,348,799 - - - - 2,348,799 Intergovernmental 5,889,584 1,872,113 16,273,732 - 407,421 24,442,850 Charges for Services 3,783,656 697,567 27,756 - 20,144 4,529,123 Fines and Forfeitures 295,424 - - - 19,809 315,233 Investment Income 20,405 131 63 7,640 1,036 29,275 Miscellaneous 548,359 40,175 - 306,791 - 895,325 Total Revenues 47,771,351 2,609,986 16,571,986 5,347,521 902,429 73,203,273 EXPENDITURES Current: General Government 11,358,771 - - 275,836 8,506 11,643,113 Economic Development 1,614,385 - - - - 1,614,385 Community Development 3,962,964 - - - - 3,962,964 Police 11,861,333 - - - 460,598 12,321,931 Public Works 2,465,959 - 45,510 - - 2,511,469 Parks and Recreation 5,401,162 1,569,943 - - - 6,971,105 Capital Outlay 1,093,184 - 9,811,751 5,032,263 273,515 16,210,713 Debt Service: Principal 47,622 - - 2,665,000 - 2,712,622 Interest 32,545 - - 832,100 - 864,645 Total Expenditures 37,837,925 1,569,943 9,857,261 8,805,199 742,619 58,812,947 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,933,426 1,040,043 6,714,725 (3,457,678) 159,810 14,390,326 OTHER FINANCING SOURCES (USES) Sales of Capital Assets 27,350 - - - - 27,350 Insurance Recovery 34,209 - - - - 34,209 Transfers In - - 1,300,000 - - 1,300,000 Transfers Out (1,300,000) - - - - (1,300,000) Total Financing Sources (Uses) (1,238,441) - 1,300,000 - - 61,559 NET CHANGE IN FUND BALANCES 8,694,985 1,040,043 8,014,725 (3,457,678) 159,810 14,451,885 Fund Balances - Beginning of Year 12,030,161 3,639,108 3,961,185 8,553,991 1,573,194 29,757,639 FUND BALANCES - END OF YEAR 20,725,146$ 4,679,151$ 11,975,910$ 5,096,313$ 1,733,004$ 44,209,524$ CITY OF WHEAT RIDGE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES DECEMBER 31, 2021 See accompanying Notes to Financial Statements. (21) Amounts reported for governmental activities in the state of activities is different because: Net Change in Fund Balances of Governmental Funds 14,451,885$ Capital outlays to purchase or construct capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are capitalized in the statement of net position and are allocated over the estimated useful lives as annual depreciation expense in the statement of activities. Capital Outlays 15,340,809 Depreciation Expense (3,772,372) Contributed Assets 75,804 Net Book Value of Disposals (34,105) Some revenues reported in the statement of activities are not available as current financial resources and, therefore, are not reported as revenues in governmental funds. Negative amounts indicate a decrease in accruals between fiscal years. Examples are revenues from grant reimbursements. Intergovernmental Revenue 492,966 Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position and does not affect the statement of activities. Bond Payments 2,665,000 Capital Lease Payments 47,622 Some expenses reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. This represents changes in the following. Accrued Interest Payable 4,442 Amortization of Premium 309,931 Compensated Absences 107,303 Claims Payable (142,492) Change in Net Position of Governmental Activities 29,546,793$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (22) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Wheat Ridge, Colorado (the City) was incorporated in August 1969, and became a home rule city in 1976, as defined by State statutes. The City is governed by a Mayor and eight member Council elected by the residents. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to government entities. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Reporting Entity The financial reporting entity consists of the City, organizations for which the City is financially accountable, and organizations that raise and hold economic resources for the direct benefit of the City. All funds, organizations, institutions, agencies, departments and offices that are not legally separate are part of the City. Legally separate organizations for which the City is financially accountable are considered part of the reporting entity. Financial accountability exists if the City appoints a voting majority of the organization’s governing board and is able to impose its will on the organization, or if there is a potential for the organization to provide benefits to, or impose financial burdens on, the City. Based on the application of these criteria, the City includes the following organization in its reporting entity. The Wheat Ridge Urban Renewal Authority (the Authority) was created to redevelop or rehabilitate certain blighted areas within the City. The Authority board members are appointed by the Mayor and City Council. Although the Authority is legally separate from the City, the Authority’s primary revenue source, tax increment financing, can only be established by the City. The Authority is discretely presented in the financial statements and does not issue separate financial statements. 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 activities of the City and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges for interfund services that are reasonably equivalent to the services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported in a single column. The primary government is reported separately from the legally separate component unit for which the City is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of the given function or segment 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 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. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (23) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Government-Wide and Fund Financial Statements (Continued) Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Separate financial statements are provided for the governmental funds. Major individual 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. 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 revenues 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 year or soon enough thereafter to pay liabilities of the current year. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current year. Taxes, intergovernmental revenues, and interest associated with the current year are considered to be susceptible to accrual and so have been recognized as revenues of the current year. All other revenues are considered to be measurable and available only when cash is received by the City. 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. When both restricted and unrestricted resources are available for a specific use, it is the City’s practice to use restricted resources first, then unrestricted resources as they are needed. The City reports the following major governmental funds: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those accounted for in another fund. The Open Space Fund accounts for County shared revenues, grants, and development fees restricted for the acquisition, construction, and maintenance of open space and parks. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (24) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The Capital Projects Fund accounts for the accumulation of resources from a lodgers tax, intergovernmental revenues and General Fund transfers for the acquisition or construction of major capital assets. The Investing 4 the Future Fund accounts for the collection of a 0.5% sales and use tax approved by election to finance a portion of certain improvement projects. The sales and use tax expires when revenues generated by the tax reach $38.5 million or on December 31, 2028, whichever occurs first. Assets, Liabilities, and Net Position/Fund Balances Receivables – Receivables include sales, use and lodgers’ taxes and a loan. Receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Prepaid Items – Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenses/expenditures when consumed rather than purchased. Interfund Receivables and Payables – During the course of operations, certain transactions occur between individual funds. The resulting receivables and payables are classified on the balance sheet as interfund receivables and interfund payables. Any balances outstanding between the primary government and the discretely presented component unit are reported on the statement of activities as due from and due to. Property Held for Resale – Property that is held with the intent to sell is reported at the lower of cost or fair value. Capital Assets – Capital assets, which include property, equipment, and infrastructure acquired or constructed since 1980, are reported in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more 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 the acquisition value on the date of donation. Intangible assets are reported at cost if they are identifiable. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (25) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, and Net Position/Fund Balances (Continued) Capital assets are depreciated or amortized using the straight-line method over the following estimated useful lives. Land Improvements 10 to 40 Years Buildings 10 to 40 Years Vehicles, Machinery, and Equipment 3 to 40 Years Infrastructure 20 to 50 Years Software 5 Years Solar Power Capacity 20 Years Unearned Revenues – Unearned revenues include business license fees collected in advance. Deferred Inflows of Resources – Deferred inflows of resources include property taxes earned but levied for a subsequent year. In addition, deferred inflows of resources are reported in governmental funds for unavailable revenue for grant revenues collected over 60 days after year-end. These amounts are recognized as an inflow of resources in the period the revenue becomes available. Compensated Absences – Employees of the City are allowed to accumulate unused vacation and sick time up to a maximum based on years of service. Upon termination of employment from the City, an employee will be compensated for all accrued vacation time at their current pay rate. A long-term liability has been reported in the government-wide financial statements for compensated absences. Long-Term Debt – In the government-wide financial statements, long-term debt and other long- term obligations are reported as liabilities. Debt premiums and discounts are deferred and amortized over the life of the debt using the effective interest method. In the fund financial statements, governmental funds recognize the face amount of debt issued 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. Governmental funds recognize long-term liabilities only when payment is due. Payments of long-term debt are reported as current expenditures. Debt issuance costs are reported as current expenses or expenditures. Net Position/Fund Balances – In the government-wide and fund financial statements, net position and fund balances are restricted when constraints placed on the use of resources are externally imposed. Governmental funds can report fund balance classifications of nonspendable, restricted, committed, assigned, and unassigned. The nonspendable classification is generally for inventories and prepaid expenses that are part of fund balance but not available for spending. Restricted amounts are not available for appropriation because they are legally restricted by an outside party for a specific purpose. Committed funds are reserved for a specific purpose by City Council and cannot be committed or uncommitted without formal action through resolution by City Council. In addition, by resolution the City Council has delegated to the City Manager or his designee the authority to assign fund balances for specific purposes. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (26) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, and Net Position/Fund Balances (Continued) Unassigned is a residual classification within the General Fund. The General Fund is the only fund that reports a positive unassigned fund balance. As adopted by City Council policy, the City will maintain a minimum unrestricted fund balance of at least two months, or approximately 17%, of its General Fund operating expenditures. When expenditures are incurred for a specific purpose for which both restricted and unrestricted fund balances are available, the City’s policy is to use restricted amounts first, followed by committed, assigned and unassigned amounts. Property Taxes Property taxes attach as an enforceable lien on property on January 1, are levied the following December, and collected in the subsequent calendar year. 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 City on a monthly basis. Since property tax revenues are collected in arrears during the succeeding year, receivables and corresponding deferred inflows of resources are reported at year-end. Contraband Forfeitures The Colorado Contraband Forfeiture Act allows law enforcement agencies to retain proceeds from the seizure of contraband. These transactions are reported in the Police Investigation Special Revenue Fund. NOTE 2 CASH AND INVESTMENTS A summary of cash and investments at December 31, 2021, follows: Petty Cash 4,150$ Cash Deposits 5,871,227 Investments 82,043,851 Total 87,919,228$ Cash and investments are reported in the financial statements as follows: Cash and Investments - Primary Government 36,572,994$ Restricted Cash and Investments - Primary Government 5,030,410 Cash and Investments - Component Unit 3,479,287 Restricted Cash and Investments - Component Unit 42,836,537 Total 87,919,228$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (27) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Cash Deposits The Colorado Public Deposit Protection Act (PDPA) requires all local government entities to deposit cash in eligible public depositories. Eligibility is determined by State regulations. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. The 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 uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2021, the City and the Authority had bank deposits with a carrying amount of $2,392,125 and $3,479,102, respectively, collateralized with securities held by the financial institutions’ agents but not in their name. Investments The City and the Authority are required to comply with State statutes, which specify investment instruments meeting defined rating, maturity and concentration risk criteria in which local governments may invest. State statutes do not address custodial risk. Through its investment policy, the City has further restricted allowable investments to the following. • Obligations of the United States and U.S. Agency securities • Corporate debt • Commercial paper • Bankers’ acceptances • Repurchase agreements collateralized by authorized securities • General obligations of U.S. local government entities • Guaranteed investment contracts • Money market funds • Local government investment pools The City and the Authority had the following investments at December 31, 2021: Investment Type Rating Less Than 1 1 to 5 Total CSAFE Cash AAAmmf 95,753$ -$ 95,753$ CSAFE Core AAAf 59,369,621 - 59,369,621 CSIP LGIP AAAm 56 - 56 CSIP Term AAAf 15,105,643 - 15,105,643 Money Market Funds AAAm 7,472,778 - 7,472,778 Total 82,043,851$ -$ 82,043,851$ Investment Maturities (in Years) CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (28) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Investments (Continued) Interest Rate Risk – State statutes generally limit investments to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. Credit Risk – State statutes limit certain investments to those with specified ratings from nationally recognized statistical rating organizations, depending on the type of investment. Concentration of Credit Risk – Except for corporate securities, State statutes do not limit the amount the City may invest in any single investment or issuer. Fair Value of Investments – The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Local Government Investment Pools – At December 31, 2021, the City and Authority had $59,369,621 invested in the Colorado Surplus Asset Fund Trust (CSAFE) Core Fund, an investment vehicle established for local government entities in Colorado to pool surplus funds. The Colorado Division of Securities administers and enforces the requirements of creating and operating CSAFE. The external investment pool is measured at net asset value (NAV) with each share valued at $2.00. CSAFE Core is rated AAAf by Fitch. Investments of CSAFE Core are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. The custodian's internal records identify the investments owned by participating governments. There are no unfunded commitments, the redemption frequency is daily with a 24-hour notification period, and a limit of three redemptions per month. At December 31, 2021, the City had $95,753 invested in the Colorado Surplus Asset Fund Trust (CSAFE) Cash Fund, an investment vehicle established for local government entities in Colorado to pool surplus funds. The external investment pool is measured at amortized cost with each share valued at $1.00. Investments in the external investment pool are shown at amortized cost for financial reporting purposes. CSAFE Cash is rated AAAmmf by Fitch. Investments of CSAFE Cash are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. The custodian's internal records identify the investments owned by participating governments. There are no unfunded commitments, the redemption frequency is daily, and there is no redemption notice period. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (29) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Investments (Continued) At December 31, 2021, the City had $56 invested in the Colorado Statewide Investment Pool (CSIP) Liquid Portfolio, an investment vehicle established for local government entities in Colorado to pool surplus funds. The Colorado Division of Securities administers and enforces the requirements of creating and operating CSIP. The external investment pool is measured at net asset value (NAV) per share with each share valued at $1.00. Investments in the external investment pool are shown at amortized cost for financial reporting purposes. CSIP Liquid is rated AAAm by Standard and Poor's. Investments of CSIP Liquid are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. The custodian's internal records identify the investments owned by participating governments. There are no unfunded commitments, the redemption frequency is daily, and there is no redemption notice period. At December 31, 2021, the City had $15,105,643 invested in the Colorado Statewide Investment Pool (CSIP) Term Portfolio, an investment vehicle established for local government entities in Colorado to pool surplus funds. The Colorado Division of Securities administers and enforces the requirements of creating and operating CSIP. The external investment pool is measured at net asset value (NAV) per share with each share valued at $1.00. CSIP Term is rated AAAf by Fitch. Investments of CSIP Term are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. The custodian's internal records identify the investments owned by participating governments. There are no unfunded commitments, there is a seven-day notification period with potential early redemption penalties for withdrawal prior to maturity. The Authority has $7,472,778 in money market accounts at a financial institution which is valued at amortized cost. NOTE 3 LOANS RECEIVABLE The City entered into two loan agreements with the developer of the Fruitdale Lofts project. Under the agreements, the City committed to loan the developer $470,000 and $2,115,000. The first loan is due 35 years following substantial completion of the project, with interest accruing at 5% per annum beginning 20 years after substantial completion of the project. Repayment terms for the second loan are dependent upon certain financing and equity contributions of the developer. The loan is due in 20 years, with interest accruing at 5% per annum commencing after completion of the project. During 2017, the project was under construction and the City had advanced the full amount of $2,585,000 under these agreements. At December 31, 2021, the outstanding balance on the loans was $1,085,000. The City did not receive principal or interest payments under either loan agreement during 2021. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (30) NOTE 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2021, is summarized below. Balance Balance 12/31/2020 Additions Deletions 12/31/2021 Governmental Activities Capital Assets, Not Being Depreciated Land 16,259,787$ 602,147$ -$ 16,861,934$ Artwork 196,795 - - 196,795 Construction in Progress 31,556,759 13,800,283 (666,242) 44,690,800 Total Capital Assets Not Being Depreciated 48,013,341 14,402,430 (666,242) 61,749,529 Capital Assets, Being Depreciated: Land Improvements 26,023,049 - - 26,023,049 Buildings 23,676,764 563,446 - 24,240,210 Vehicles 6,222,744 581,731 (312,986) 6,491,489 Machinery and Equipment 8,536,819 284,758 - 8,821,577 Infrastructure 71,150,325 250,490 - 71,400,815 Software 394,497 - - 394,497 Solar Power Capacity 776,628 - - 776,628 Total Capital Assets, Being Depreciated 136,780,826 1,680,425 (312,986) 138,148,265 Less Accumulated Depreciation: Land Improvements (8,598,895) (745,934) - (9,344,829) Buildings (14,063,788) (599,085) - (14,662,873) Vehicles (3,562,598) (423,219) 278,881 (3,706,936) Machinery and Equipment (6,383,036) (496,980) - (6,880,016) Infrastructure (60,055,419) (1,434,248) - (61,489,667) Software (324,945) (34,075) - (359,020) Solar Power Capacity (223,279) (38,831) - (262,110) Total Accumulated Depreciation (93,211,960) (3,772,372) 278,881 (96,705,451) Total Capital Assets, Being Depreciated, Net 43,568,866 (2,091,947) (34,105) 41,442,814 Governmental Activities Capital Assets, Net 91,582,207$ 12,310,483$ (700,347)$ 103,192,343$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (31) NOTE 4 CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to programs of the City as follows: General Government 292,185$ Community Development 11,275 Police 229,995 Public Works 1,896,179 Parks and Recreation 1,342,738 Total 3,772,372$ Capital asset activity for the Urban Renewal Authority for the year ended December 31, 2021, is summarized below. Balance Balance 12/31/2020 Additions Deletions 12/31/2021 Governmental Activities Capital Assets, Not Being Depreciated: Construction in Progress 4,999,880$ -$ -$ 4,999,880$ Total Capital Assets 4,999,880$ -$ -$ 4,999,880$ NOTE 5 LONG-TERM DEBT Following is a summary of long-term debt transactions for the year ended December 31, 2021. Balance Balance Due Within 12/31/2020 Additions Reductions 12/31/2021 One Year Governmental Activities 2017 Revenue Bonds 20,365,000$ -$ 2,665,000$ 17,700,000$ 2,720,000$ 2017 Bond Premium 1,285,201 - 309,931 975,270 290,078 Solar Power Capacity Lease 579,873 - 47,622 532,251 47,622 Compensated Absences 1,462,804 1,573,668 1,680,971 1,355,501 143,864 Claims Payable 143,425 228,919 86,427 285,917 285,917 Total 23,836,303$ 1,802,587$ 4,789,951$ 20,848,939$ 3,487,481$ Urban Renewal Authority Private Placement: 2014 Loans Payable 945,000$ -$ 305,000$ 640,000$ 315,000$ 2018 Loans Payable 6,375,000 - 6,375,000 - - Series 2021 Bonds - 42,105,000 - 42,105,000 160,000 2021 Bond Premium - 8,198,367 85,843 8,112,524 587,697 Pollution Remediation 572,084 - 572,084 - - Total 7,892,084$ 50,303,367$ 7,337,927$ 50,857,524$ 1,062,697$ Compensated absences are expected to be liquidated primarily with revenues of the General Fund. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (32) NOTE 5 LONG-TERM DEBT (CONTINUED) Revenue Bonds On May 2, 2017, the City issued $30,595,000 Sales and Use Tax Revenue Bonds, Series 2017A. Bond proceeds will be used to finance certain improvement projects. Interest accrues on the bonds at rates ranging from 3% to 5% per annum and is payable semi- annually on June 1 and December 1, beginning on December 1, 2017. Annual principal payments are due on December 1, from 2017 through 2027. After issuance of the bonds, the City has $2,405,000 of debt authorization remaining from the related election. The bonds are payable solely from revenues generated by the 0.5% sales and use tax reported in the Investing 4 the Future Fund. During the year ended December 31, 2021, revenues of $5,033,090 were available to pay annual debt service of $3,497,100. Remaining debt service at December 31, 2021, was as follows: Year Ending December 31, Principal Interest Total 2022 2,720,000$ 778,800$ 3,498,800$ 2023 2,860,000 642,800 3,502,800 2024 3,000,000 499,800 3,499,800 2025 3,150,000 349,800 3,499,800 2026 3,260,000 238,800 3,498,800 2027 2,710,000 108,400 2,818,400 Total 17,700,000$ 2,618,400$ 20,318,400$ Solar Power Capacity Lease On March 23, 2015, the City entered into an agreement to purchase solar power capacity in a community solar garden. The purchase was financed in April 2015, with a lease agreement in the amount of $800,000. Monthly payments of $6,681, including principal and interest accruing at 5.75% per annum, are due under the agreement, beginning June 1, 2015, through May 1, 2030. At December 31, 2021, capital assets of $394,497, net of accumulated depreciation, were reported under this lease. Following is a schedule of the future minimum lease payments at December 31, 2021. Year Ending December 31, Amount 2022 80,167$ 2023 80,167 2024 80,167 2025 80,167 2026 80,167 2027-2030 273,884 Total Minimum Lease Payments 674,719 Less: Interest Portion (142,468) Present Value of Minimum Lease Payments 532,251$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (33) NOTE 5 LONG-TERM DEBT (CONTINUED) Urban Renewal Authority Loans On May 14, 2014, the Authority approved a loan agreement with Colorado State Bank and Trust for $2,455,000 to finance infrastructure improvements associated with redevelopment property. The loan accrues interest at 3.16% per annum. Interest payments are due semi- annually beginning December 1, 2014. Principal payments are due annually beginning December 1, 2015, through 2023. During the year ended December 31, 2021, revenues of $2,352,958 were available to pay annual debt service of $305,000 in principal and $381,724 in interest. Future debt service on the 2014 loan agreement is as follows: Year Ending December 31, Principal Interest Total 2022 315,000$ 20,224$ 335,224$ 2023 325,000 10,270 335,270 Total 640,000$ 30,494$ 670,494$ On October 18, 2018, the Authority approved a loan agreement with Colorado State Bank and Trust for $6,375,000 to finance the development of real property for the purpose of mixed-use commercial development with an interest rate at 4.65% per annum. During the year ended December 31, 2021, this loan was fully paid using part of the proceeds from the Series 2021 bonds. The economic gain from refunding the 2018 loan agreement with the Series 2021 bonds was $790,849. Urban Renewal Authority Series 2021 Bonds On November 9, 2021, the Authority issued the Series 2021 Tax Increment Revenue Refunding and Improvement Bonds for $42,105,000 along with a premium of $8,198,367, to refund the 2018 loan agreement and to finance various street improvements. Interest of 4.00% is due on June 1 and December 1 of each year, commencing on June 1, 2022. Principal payments are due annually beginning December 1, 2022, through 2040. Future debt service on the Series 2021 bonds is as follows: Year Ending December 31, Principal Interest Total 2022 160,000$ 1,875,514$ 2,035,514$ 2023 1,185,000 1,761,100 2,946,100 2024 - 1,713,700 1,713,700 2025 740,000 1,713,700 2,453,700 2026 865,000 1,684,100 2,549,100 2027-2031 9,305,000 7,498,750 16,803,750 2032-2036 14,200,000 4,916,000 19,116,000 2037-2040 15,650,000 1,666,000 17,316,000 Total 42,105,000$ 22,828,864$ 64,933,864$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (34) NOTE 5 LONG-TERM DEBT (CONTINUED) Pollution Remediation The Urban Renewal Authority is conducting a site remediation at an approximately 0.552- acre parcel of land located at 7690 West 38th Avenue (Jefferson County Parcel ID 39-262- 01-001), as part of the Colorado Department of Public Health and Environment (CDPHE) Voluntary Clean-Up Program (VCUP), in Wheat Ridge and Jefferson County, Colorado. The Urban Renewal Authority’s application was approved by CDPHE on January 7, 2014. The site consists of a vacant gravel lot. A former 2,400 square-foot dry cleaner and later a parts department for a shuttered car dealership were previously demolished as part of the approved VCUP Application. During the year ended December 31, 2021, the Authority completed the anticipated remediation actions and received approval from the Colorado Department of Public Health and Environment on the filing of a “No Action Petition”, indicating that there are no additional remediation actions anticipated at this site. NOTE 6 INTERFUND ACTIVITY During the year ended December 31, 2021, the General Fund transferred $1,300,000 to the Capital Projects Fund to finance capital projects and to purchase additional equipment. NOTE 7 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has agreed to self-insure for general liability claims to a maximum of $150,000 and automobile, property and physical damage claims to a maximum of $10,000. The City accounts for its risk management activities in the General Fund. Claims liabilities, including estimated incurred but not reported claims (IBNR), are reported in the government-wide financial statements if information available prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in claims payable for the years ended December 31, 2021 and 2020, were as follows: 2021 2020 Claims Payable - January 1 143,425$ 87,753$ Incurred Claims and Changes in Estimated Claims 228,919 152,769 Claims Paid (86,427) (97,097) Claims Payable - December 31 285,917$ 143,425$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (35) NOTE 7 RISK MANAGEMENT (CONTINUED) For excess liability and property claims the City participates in the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to the provisions of 24-10-115.5, Colorado Revised Statutes (1982 Replacement Volume) and the Colorado Constitution, Article XIV, Section 18(2). The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverages and to assist members to prevent and reduce losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. For workers’ compensation claims, the City is insured by Pinnacol Assurance. NOTE 8 RETIREMENT COMMITMENTS Police Defined Contribution Pension Plan The City contributes to a single-employer defined contribution money purchase pension plan on behalf of sworn police officers. The Plan is administered by the International City/County Management Association (ICMA). During 2021, employees contributed 10% of their compensation to the Plan and the City contributed 11%. Employees become vested in City contributions to the Plan at 20% annually, beginning in the third year of employment. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31, 2021, the City’s pension expense was $791,375 and employee contributions to the Plan were $720,762, equal to the required contributions. Department Head Defined Contribution Pension Plan City department heads participate in a multiple-employer defined contribution pension plan upon employment with the City. The Plan is administered by ICMA. During 2021 department heads contributed 4% of their compensation to the Plan and the City contributed 7%, except for the City Manager for which the City contributed 10%. Employees become vested in all contributions to the Plan immediately. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31, 2021, the City’s pension expense was $74,606 and employee contributions to the Plan were $39,094, equal to the required contributions. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (36) NOTE 8 RETIREMENT COMMITMENTS (CONTINUED) Employee Defined Contribution Pension Plan The City contributes to a multiple-employer defined contribution pension plan on behalf of all employees, except sworn police officers and department heads. The Plan is administered by ICMA. During 2021 employees contributed 4% of their compensation to the Plan, and the City contributed 6%. Employees become vested in City contributions to the Plan at 20% annually after one year of employment. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31, 2021, the City’s pension expense was $542,151 and employee contributions to the Plan were $361,415, equal to the required contributions. NOTE 9 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 governments. The Amendment requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of an expiring tax, or tax policy change directly causing a net tax revenue gain to the City. Revenue in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. The City’s management believes it is in compliance with the provisions of the Amendment. However, the Amendment is complex and subject to interpretation. Many of its provisions may require judicial interpretation. In November, 2006, voters agreed to allow the City to spend all revenues generated during 2006 and each subsequent year for police protection, street construction – repair and maintenance, parks and recreation – trails and open space, capital projects, and other basic municipal services, without limitation. The Authority is not subject to the Tabor Amendment. See: Marian L. Olson v. City of Golden, et. al., 53 P.3d 747 (Co. App.), certiorari denied. The City has established an emergency reserve, representing 3% of qualifying revenues, as required by the Amendment. At December 31, 2021, the emergency reserve of $1,900,000 was reported as restricted fund balance in the General Fund. Grant Programs The City participates in a number of federal and state programs that are fully or partially funded by grants received from other governmental entities. Expenses financed by grants are subject to audit by the appropriate grantor government. If expenses are disallowed due to noncompliance with grant program regulations, the City may be required to reimburse the grantor government. At December 31, 2021, significant amounts of grant expenses have not been audited but management believes that subsequent audits will not have a material effect on the overall financial position of the City. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 (37) NOTE 9 COMMITMENTS AND CONTINGENCIES (CONTINUED) Conduit Debt On August 7, 2015, the City participated in the issuance of a $1,000,000 Development Revenue Note (Seniors’ Resource Center, Inc. Project) Series 2015, to provide financing for facility improvements. The City is not obligated in any manner for repayment of the Note. Accordingly, the Note is not reported as a liability in the accompanying financial statements. During the year ended December 31, 2021, the outstanding balance was paid in full. Litigation The City is involved in various threatened and pending litigation. The outcome of this litigation cannot be determined at this time. NOTE 10 TAX ABATEMENTS The City of Wheat Ridge has a Business Development Zone Program, as enacted by the City Code Chapter 22, Article I, Division 5, which provides a share-back of Use-Tax generated by developments that meet the criteria established as public or public related improvements. The Program was created as a joint benefit to the public at large and to private owners for the purposes of reducing blight in business districts and providing the city with increased sales and use tax revenues generated upon and by properties improved as a result of this program. For the fiscal year ended December 31, 2021, the City abated 3% of applicable use taxes totaling $271,070. The rebates were primarily for a manufacturing company that is expanding operations that is expected to produce incremental future use tax revenue generated by the project as well as both the short-term and long-term expected employment opportunities within the City and for a property developer constructing certain public improvements. The maximum rebate allowed over the course of these projects is $14,980,617. The Wheat Ridge Urban Renewal Authority has various Redevelopment Plans, approved by city council, which serve to further the mission of the Authority and establish future tax generating facilities by offsetting redevelopment costs through rebated property tax increment revenues and sales tax increment revenues offered to developers. For the fiscal year ended December 31, 2021, the Authority rebated property tax increment revenues and sales tax increment revenues for a total of $1,595,063. These rebates were for three development companies, which have renovated various locations within the boundaries of a defined economic urban renewal area. The redeveloped locations are expected to produce future incremental property and sales tax revenues for the City. The maximum rebate allowed over the course of this project is $18,073,521. (38) REQUIRED SUPPLEMENTARY INFORMATION CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE – GENERAL FUND YEAR ENDED DECEMBER 31, 2021 (39) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Taxes 29,153,693$ 29,153,693$ 34,885,124$ 5,731,431$ Licenses and Permits 1,888,500 1,888,500 2,348,799 460,299 Intergovernmental 1,720,105 1,720,105 5,889,584 4,169,479 Charges for Services 2,685,411 2,685,411 3,783,656 1,098,245 Fines and Forfeitures 324,900 324,900 295,424 (29,476) Investment Income 45,000 45,000 20,405 (24,595) Miscellaneous 466,270 466,270 548,359 82,089 Total Revenues 36,283,879 36,283,879 47,771,351 11,487,472 EXPENDITURES Current: General Government 11,333,237 11,935,932 11,358,771 577,161 Economic Development 1,751,554 1,753,304 1,614,385 138,919 Community Development 2,571,974 4,571,369 3,962,964 608,405 Police 12,054,938 12,153,320 11,861,333 291,987 Public Works 3,291,780 3,583,280 2,465,959 1,117,321 Parks and Recreation 6,555,067 6,872,872 5,401,162 1,471,710 Capital Outlay - 310,500 1,093,184 (782,684) Debt Service: Principal - - 47,622 (47,622) Interest - - 32,545 (32,545) Total Expenditures 37,558,550 41,180,577 37,837,925 3,342,652 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,274,671) (4,896,698) 9,933,426 14,830,124 OTHER FINANCING SOURCES (USES) Sales of Capital Assets - - 27,350 27,350 Insurance Recovery - - 34,209 34,209 Transfers Out 1,300,000 1,300,000 (1,300,000) (2,600,000) Total Other Financing Sources (Uses) 1,300,000 1,300,000 (1,238,441) (2,538,441) NET CHANGE IN FUND BALANCE 25,329 (3,596,698) 8,694,985 12,291,683 Fund Balance - Beginning of Year 13,209,311 12,030,161 12,030,161 - FUND BALANCE - END OF YEAR 13,234,640$ 8,433,463$ 20,725,146$ 12,291,683$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE – OPEN SPACE FUND YEAR ENDED DECEMBER 31, 2021 (40) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Intergovernmental 1,200,000$ 1,200,000$ 1,872,113$ 672,113$ Charges for Services 838,069 838,069 697,567 (140,502) Grants 762,970 872,970 - (872,970) Investment Income 250 250 131 (119) Miscellaneous - - 40,175 40,175 Total Revenues 2,801,289 2,911,289 2,609,986 (301,303) EXPENDITURES Current: Parks and Recreation 2,940,122 3,963,954 1,569,943 2,394,011 Capital Outlay - 556,275 - 556,275 Total Expenditures 2,940,122 4,520,229 1,569,943 2,950,286 NET CHANGE IN FUND BALANCE (138,833) (1,608,940) 1,040,043 2,648,983 Fund Balance - Beginning of Year 2,658,220 3,639,108 3,639,108 - FUND BALANCE - END OF YEAR 2,519,387$ 2,030,168$ 4,679,151$ 2,648,983$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE – INVESTING 4 THE FUTURE FUND YEAR ENDED DECEMBER 31, 2021 (41) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Taxes 4,247,282$ 4,247,282$ 5,033,090$ 785,808$ Investment Income 23,642 23,642 7,640 (16,002) Miscellaneous - - 306,791 306,791 Total Revenues 4,270,924 4,270,924 5,347,521 1,076,597 EXPENDITURES Current: General Government -22,000 275,836 (253,836) Capital Outlay -5,538,850 5,032,263 506,587 Debt Service: Principal 2,665,000 2,665,000 2,665,000 - Interest 832,600 832,600 832,100 500 Total Expenditures 3,497,600 9,058,450 8,805,199 253,251 NET CHANGE IN FUND BALANCE 773,324 (4,787,526) (3,457,678) 1,329,848 Fund Balance - Beginning of Year 13,774,087 8,553,991 8,553,991 - FUND BALANCE - END OF YEAR 14,547,411$ 3,766,465$ 5,096,313$ 1,329,848$ CITY OF WHEAT RIDGE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 (42) NOTE 1 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgets and Budgetary Accounting State statutes require that all funds have legally adopted budgets and appropriations. Total expenditures may not exceed the amount appropriated at the fund level. Budgets are adopted for all funds of the City on a basis consistent with accounting principles generally accepted in the United States of America. The City follows these procedures to establish the budgetary information reflected in the financial statements:  Management submits to the City Council 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 adopted through passage of a resolution.  Revisions that alter the total expenditures of any fund must be approved by the City Council.  All appropriations lapse at year-end. Budgetary information presented in the financial statements for the Wheat Ridge Urban Renewal Authority was approved by the governing board of the Wheat Ridge Urban Renewal Authority. (43) SUPPLEMENTARY INFORMATION CITY OF WHEAT RIDGE COMBINING BALANCE SHEET NONMAJOR FUNDS DECEMBER 31, 2021 (44) Police Municipal Conservation Crime Equipment Investigation Court Trust Prevention Public Art Replacement Totals ASSETS Cash and Investments 36,482$ 98,701$ 947,024$ 221,393$ 370,313$ 83,860$ 1,757,773$ Accounts Receivable - - - 44,056 - - 44,056 Total Assets 36,482$ 98,701$ 947,024$ 265,449$ 370,313$ 83,860$ 1,801,829$ LIABILITIES Accounts Payable -$ 4,897$ 48,172$ -$ -$ -$ 53,069$ Accrued Liabilities - - - 15,756 - - 15,756 Total Liabilities - 4,897 48,172 15,756 - - 68,825 FUND BALANCES Restricted for: Open Space and Parks - - 898,852 - - - 898,852 Police Investigations 36,482 - - - - - 36,482 Crime Prevention Activities - - - 249,693 - - 249,693 Committed to: Municipal Court - 93,804 - - - - 93,804 Public Art - - - - 370,313 - 370,313 Assigned to: Equipment Replacement - - - - - 83,860 83,860 Total Fund Balances 36,482 93,804 898,852 249,693 370,313 83,860 1,733,004 Total Liabilities and Fund Balances 36,482$ 98,701$ 947,024$ 265,449$ 370,313$ 83,860$ 1,801,829$ CITY OF WHEAT RIDGE COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR FUNDS YEAR ENDED DECEMBER 31, 2021 (45) Police Municipal Conservation Crime Equipment Investigation Court Trust Prevention Public Art Replacement Totals REVENUES Taxes -$ -$ -$ 405,652$ 48,367$ -$ 454,019$ Intergovernmental - - 379,826 - 27,595 - 407,421 Charges for Services - - - - 20,144 - 20,144 Fines and Forfeitures - 7,955 - 11,854 - - 19,809 Investment Income 3 20 887 30 43 53 1,036 Total Revenues 3 7,975 380,713 417,536 96,149 53 902,429 EXPENDITURES Current: General Government - 8,506 - - - - 8,506 Police 537 - - 460,061 - - 460,598 Capital Outlay - - 270,116 - - 3,399 273,515 Total Expenditures 537 8,506 270,116 460,061 - 3,399 742,619 NET CHANGE IN FUND BALANCES (534) (531) 110,597 (42,525) 96,149 (3,346) 159,810 Fund Balances - Beginning of Year 37,016 94,335 788,255 292,218 274,164 87,206 1,573,194 FUND BALANCES - END OF YEAR 36,482$ 93,804$ 898,852$ 249,693$ 370,313$ 83,860$ 1,733,004$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE POLICE INVESTIGATION FUND YEAR ENDED DECEMBER 31, 2021 (46) Original Variance and Final Positive Budget Actual (Negative) REVENUES Investment Income 10$ 3$ (7)$ EXPENDITURES Current: Police 15,000 537 14,463 NET CHANGE IN FUND BALANCE (14,990) (534) 14,456 Fund Balance - Beginning of Year 22,019 37,016 14,997 FUND BALANCE - END OF YEAR 7,029$ 36,482$ 29,453$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE MUNICIPAL COURT FUND YEAR ENDED DECEMBER 31, 2021 (47) Original Variance and Final Positive Budget Actual (Negative) REVENUES Fines and Forfeitures 12,500$ 7,955$ (4,545)$ Investment Income 50 20 (30) Total Revenues 12,550 7,975 (4,575) EXPENDITURES Current: General Government 29,000 8,506 20,494 NET CHANGE IN FUND BALANCE (16,450) (531) 15,919 Fund Balance - Beginning of Year 79,210 94,335 15,125 FUND BALANCE - END OF YEAR 62,760$ 93,804$ 31,044$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE CONSERVATION TRUST FUND YEAR ENDED DECEMBER 31, 2021 (48) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Intergovernmental 320,000$ 320,000$ 379,826$ 59,826$ Investment Income 3,585 3,585 887 (2,698) Total Revenues 323,585 323,585 380,713 57,128 EXPENDITURES Current: Capital Outlay 344,750 894,740 270,116 624,624 NET CHANGE IN FUND BALANCE (21,165) (571,155) 110,597 681,752 Fund Balance - Beginning of Year 178,445 788,255 788,255 - FUND BALANCE - END OF YEAR 157,280$ 217,100$ 898,852$ 681,752$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE CRIME PREVENTION FUND YEAR ENDED DECEMBER 31, 2021 (49) Original Variance and Final Positive Budget Actual (Negative) REVENUES Lodgers Taxes 300,000$ 405,652$ 105,652$ Fines and Forfeitures 20,000 11,854 (8,146) Investment Income 100 30 (70) Total Revenues 320,100 417,536 97,436 EXPENDITURES Current: Police 578,614 460,061 118,553 NET CHANGE IN FUND BALANCE (258,514) (42,525) 215,989 Fund Balance - Beginning of Year 277,452 292,218 14,766 FUND BALANCE - END OF YEAR 18,938$ 249,693$ 230,755$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE PUBLIC ART FUND YEAR ENDED DECEMBER 31, 2021 (50) Original Variance and Final Positive Budget Actual (Negative) REVENUES Use Taxes 9,000$ 48,367$ 39,367$ Intergovernmental - 27,595 27,595 Charges for Services 453,400 20,144 (433,256) Investment Income 100 43 (57) Total Revenues 462,500 96,149 (366,351) EXPENDITURES Current: Parks and Recreation 618,000 - 618,000 NET CHANGE IN FUND BALANCE (155,500) 96,149 251,649 Fund Balance - Beginning of Year 266,115 274,164 8,049 FUND BALANCE - END OF YEAR 110,615$ 370,313$ 259,698$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE EQUIPMENT REPLACEMENT FUND YEAR ENDED DECEMBER 31, 2021 (51) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Investment Income 100$ 100$ 53$ (47)$ EXPENDITURES Capital Outlay 6,500 9,899 3,399 6,500 NET CHANGE IN FUND BALANCE (6,400) (9,799) (3,346) 6,453 Fund Balance - Beginning of Year 173,716 87,206 87,206 - FUND BALANCE - END OF YEAR 167,316$ 77,407$ 83,860$ 6,453$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS FUND YEAR ENDED DECEMBER 31, 2021 (52) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Lodgers Taxes 200,000$ 200,000$ 270,435$ 70,435$ Intergovernmental 12,006,000 12,006,000 16,273,732 4,267,732 Charges for Services - - 27,756 27,756 Investment Income 125 125 63 (62) Total Revenues 12,206,125 12,206,125 16,571,986 4,365,861 EXPENDITURES Public Works - - 45,510 (45,510) Capital Outlay 13,872,662 14,893,981 9,811,751 5,082,230 Total Expenditures 13,872,662 14,893,981 9,857,261 5,036,720 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,666,537) (2,687,856) 6,714,725 9,402,581 OTHER FINANCIAL SOURCES Transfers In 1,300,000 1,300,000 1,300,000 - NET CHANGE IN FUND BALANCE (366,537) (1,387,856) 8,014,725 9,402,581 Fund Balance - Beginning of Year 3,422,098 3,961,185 3,961,185 - FUND BALANCE - END OF YEAR 3,055,561$ 2,573,329$ 11,975,910$ 9,402,581$ CITY OF WHEAT RIDGE BALANCE SHEET COMPONENT UNIT – URBAN RENEWAL AUTHORITY DECEMBER 31, 2021 (53) ASSETS Cash and Investments 3,479,287$ Restricted Cash and Investments 42,836,537 Accounts Receivable 193,051 Property Taxes Receivable 2,476,375 Property Held for Resale 330,299 Total Assets 49,315,549$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE LIABILITIES Accounts Payable 689,693$ DEFERRED INFLOWS OF RESOURCES Property Taxes 2,476,375 FUND BALANCE Nonspendable Property Held for Resale 330,299 Restricted for Debt Service 7,472,779 Restricted for Capital Projects 35,363,758 Unrestricted, Unassigned 2,982,645 Total Fund Balance 46,149,481 Total Liabilities, Deferred Inflows of Resources, and Fund Balance 49,315,549$ Amounts reported for the component unit in the statement of net position are different because: Total Fund Balance of Component Unit 46,149,481$ Capital assets used in governmental activities are not current financial resources, and therefore, are not reported in governmental funds. 4,999,880 Long-term liabilities are not due and payable in the current year, and therefore, are not reported in governmental funds. Loans Payable (640,000) Bonds Payable (42,105,000) Bond Premium (8,112,524) Accrued Interest (241,671) Total Net Position of Component Unit 50,166$ CITY OF WHEAT RIDGE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE COMPONENT UNIT – URBAN RENEWAL AUTHORITY YEAR ENDED DECEMBER 31, 2021 (54) REVENUES Property Tax Increment 1,835,231$ Sales Tax Increment 905,899 Investment Income 4,773 Miscellaneous 242,379 Total Revenues 2,988,282 EXPENDITURES Current: Community Development 44,413 Capital Outlay 2,189,774 Debt Service: Principal 305,000 Interest 381,724 Debt Issuance Costs 743,951 Total Expenditures 3,664,862 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (676,580) OTHER FINANCING SOURCES (USES) Debt Proceeds 35,730,000 Debt Proceeds - Refunding 6,375,000 Debt Proceeds - Premium 8,198,367 Debt Service - Principal (6,375,000) Total Other Financing Sources (Uses) 43,928,367 NET CHANGE IN FUND BALANCE 43,251,787 Fund Balance - Beginning of year 2,897,694 FUND BALANCE - END OF YEAR 46,149,481$ Amounts reported for the component unit in the statement of activities are different because: Net Change in Fund Balance of Component Unit 43,251,787$ Repayments of long-term debt are expenditures in governmental funds, but the repayment reduces long-term liabilities in the statement of net position and does not affect the statement of activities. This amount represents loan payments in the current year. Payment of Loan Principal 305,000 Proceeds from Issuance of Debt (35,730,000) Proceeds from Issuance of Refunding Debt (6,375,000) Issuance of Bond Premium (8,198,367) Repayment of Loan 6,375,000 Some expenses reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. This amount represents changes in accrued interest payable, amortization of bond premium, and changes in the pollution remediation liability. 501,088 Change in Net Position of Component Unit 129,508$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE WHEAT RIDGE URBAN RENEWAL AUTHORITY YEAR ENDED DECEMBER 31, 2021 (55) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Property Tax Increment 1,405,000$ 970,024$ 1,835,231$ 865,207$ Sales Tax Increment 701,925 701,925 905,899 203,974 Intergovernmental 1,000,000 1,000,000 - (1,000,000) Investment Income 11,600 11,600 4,773 (6,827) Miscellaneous 353,720 353,720 242,379 (111,341) Total Revenues 3,472,245 3,037,269 2,988,282 (48,987) EXPENDITURES Current: Community Development 77,600 77,146 44,413 32,733 Capital Outlay 2,867,000 3,075,796 2,189,774 886,022 Debt Service: Principal 305,000 305,000 305,000 - Interest 1,466,000 381,724 381,724 - Debt Issuance Costs - 724,715 743,951 (19,236) Total Expenditures 4,715,600 4,564,381 3,664,862 899,519 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,243,355) (1,527,112) (676,580) 850,532 OTHER FINANCIAL SOURCES Debt Proceeds - 35,730,000 35,730,000 - Debt Proceeds - Refunding - 6,375,000 6,375,000 - Debt Proceeds - Premium - 8,198,367 8,198,367 - Debt Service - Principal - (6,375,000) (6,375,000) - Total Other Financing Sources (Uses) - 43,928,367 43,928,367 - NET CHANGE IN FUND BALANCE (1,243,355) 42,401,255 43,251,787 850,532 Fund Balance - Beginning of Year 3,535,293 2,897,694 2,897,694 - FUND BALANCE - END OF YEAR 2,291,938$ 45,298,949$ 46,149,481$ 850,532$ (56) STATE COMPLIANCE CITY OF WHEAT RIDGE LOCAL HIGHWAY FINANCE REPORT YEAR ENDED DECEMBER 31, 2021 (57) City or County: WHEAT RIDGE YEAR ENDING : December 2021 This Information From The Records Of The City of Wheat Ridge: Prepared By: Mark Colvin, Finance Manager Phone: 303-235-2817 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 8,380,921 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 2,690,036 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 108,812 2. General fund appropriations b. Snow and ice removal 14,805 3. Other local imposts (from page 2) 6,138,850 c. Other 4. Miscellaneous local receipts (from page 2) 1,311,792 d. Total (a. through c.) 123,617 5. Transfers from toll facilities 4. General administration & miscellaneous 628,198 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 2,913,817 a. Bonds - Original Issues 6. Total (1 through 5) 14,736,589 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) a. Interest 7. Total (1 through 6) 7,450,642 b. Redemption B. Private Contributions - c. Total (a. + b.) - C. Receipts from State government 2. Notes: (from page 2) 974,013 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) 6,311,934 c. Total (a. + b.) - E. Total receipts (A.7 + B + C + D)14,736,589 3. Total (1.c + 2.c) - C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D)14,736,589 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)- 1. Bonds (Refunding Portion) B. Notes (Total)- A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation - 14,736,589 14,736,589 - - Notes and Comments: FORM FHWA-536 (Rev. 1-05)(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 (Show all entries at par) ITEM AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS CITY OF WHEAT RIDGE LOCAL HIGHWAY FINANCE REPORT YEAR ENDED DECEMBER 31, 2021 (58) City or County: WHEAT RIDGE YEAR ENDING : December 2021 AMOUNT AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 1,131,206 a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalties 190,206 1. Sales Taxes 5,007,644 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 249,542 5. Specific Ownership &/or Other g. Other Misc. Receipts 15,756 6. Total (1. through 5.) 5,007,644 h. Other 856,288 c. Total (a. + b.) 6,138,850 i. Total (a. through h.) 1,311,792 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 974,013 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 d. Federal Transit Admin 6,311,934 d. Other - Local Government 0 e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 0 g. Total (a. through f.) 6,311,934 4. Total (1. + 2. + 3.f) 974,013 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a) (b) (c) A.1. Capital outlay: a. Right-Of-Way Costs 6,023,530 6,023,530 b. Engineering Costs 657,390 657,390 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 0 (4). System Enhancement & Operation 1,700,001 1,700,001 (5). Total Construction (1) + (2) + (3) + (4) 1,700,001 0 1,700,001 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 8,380,921 0 8,380,921 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM (59) FEDERAL COMPLIANCE – SINGLE AUDIT CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer (60) CliftonLarsonAllen LLP  CLAconnect.com  INDEPENDENT AUDITORS’ 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 Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Wheat Ridge, Colorado 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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wheat Ridge, Colorado (the City), as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated August 31, 2022. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing 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 City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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 or significant deficiencies may exist that were not identified. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (61) Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’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 financial statements. 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. 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. CliftonLarsonAllen LLP Greenwood Village, Colorado August 31, 2022 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer (62) CliftonLarsonAllen LLP  CLAconnect.com  INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Wheat Ridge, Colorado Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Wheat Ridge, Colorado’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended December 31, 2021. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the 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, 2021. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (63) Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (64) Report on 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 a 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 Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Greenwood Village, Colorado August 31, 2022 CITY OF WHEAT RIDGE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED DECEMBER 31, 2021 See accompanying notes to the Schedule of Expenditures of Federal Awards . (65) Federal Assistance Pass-Through Federal Grantor/Pass through Grantor/ Listing Grantor's Federal Program or Cluster Title Number Number Expenditures Executive Office of the President High Intensity Drug Trafficking Areas Program 95.001 N/A 13,938$ Total Executive Office of the President Programs 13,938 Department of Justice Passed Through the Colorado Division of Criminal Justice Bullet Proof Vest 16.607 2020BUBX20023463 8,935 Total Department of Justice Programs 8,935 Department of Agriculture Passed Through Jefferson County Urban Agriculture Conservation Grant 10.902 N/A 2,417 Urban Agriculture Conservation Grant 10.924 N/A 4,834 Urban Agriculture Conservation Grant 10.912 N/A 4,834 Total Department of Agriculture 12,085 Department of Treasury Passed Through Colorado Department of Local Affairs COVID-19 State and Local Fiscal Recovery Funds 21.027 N/A 3,936,640 Total Department of Treasury 3,936,640 Department of Transportation Passed Through the Colorado Department of Transportation Traffic Safety Campaign 20.600 411031625 575 Highway Planning and Construction 20.205 16-HA1-ZH-00035 6,110,410 Total Department of Transportation 6,110,985 Total Expenditures of Federal Awards 10,082,583$ CITY OF WHEAT RIDGE NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED DECEMBER 31, 2021 (66) NOTE 1 BASIS OF ACCOUNTING The schedule of expenditures of federal awards is prepared on the modified accrual basis of accounting. Expenditures are recognized when they become a demand on current available financial resources. Encumbrances are used during the year for budgetary control purposes and lapse at fiscal year-end. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). NOTE 2 INDIRECT COST RATE The City has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 3 SUBRECIPIENTS The City did not have subrecipients of federal awards for the year ended December 31, 2021. CITY OF WHEAT RIDGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 2021 (67) Section I – Summary of Auditors’ Results Financial Statements 1. Type of auditors’ report issued: Unmodified 2. Internal control over financial reporting:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financial statements noted? yes x no Federal Awards 1. Internal control over major federal programs:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 2. Type of auditors’ report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes x no Identification of Major Federal Programs Assistance Listing Number(s) Name of Federal Program or Cluster 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Fund Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee? x yes no CITY OF WHEAT RIDGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 2021 (68) Section II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). ITEM No. 3 DATE: September 12, 2022 REQUEST FOR CITY COUNCIL ACTION TITLE: MOTION APPROVING PAYMENT OF $85,553.00 TO LONG BUILDING TECHNOLOGIES FOR THE PROVISION AND INSTALLATION OF A DOMESTIC WATER HEATER FOR THE CITY OF WHEAT RIDGE RECREATION CENTER PUBLIC HEARING BIDS/MOTIONS RESOLUTIONS QUASI-JUDICIAL: ORDINANCES FOR 1ST READING ORDINANCES FOR 2ND READING YES NO Director of Parks & Recreation City Manager ISSUE: The domestic water heater currently serving the Wheat Ridge Recreation Center has surpassed its expected useful life, at 13 years. The original budgeted amount of $42,000.00 is not enough to cover the cost of replacement, however funds exist in the budget that can cover the additional expense. PRIOR ACTION: No prior action has been taken by City Council. FINANCIAL IMPACT: The replacement of the water heater at the Wheat Ridge Recreation Center was originally budgeted in 2022 for $42,000.00 based on a quote from 2020. The funding to cover the remaining balance of $43,553.00 exists in Fund 54, the Conservation Trust Fund (54-601-800- 870), for maintenance of recreation facilities. No supplemental funding will be necessary to complete this project; a simple reallocation of existing funding will meet the need. BACKGROUND: The domestic water heater currently serving the Wheat Ridge Recreation Center has surpassed its expected useful life, at 13 years. The average useful life of commercial domestic water heaters is between 8 – 12 years. The previous domestic water heater, which was the same as the Council Action Form – Motion to Approve Payment for Domestic Water Heater September 12, 2022 Page 2 existing, began to fail quickly at 9 years; so, the City has experienced luck with the existing water heater reaching its advanced age. However, this means that failure is imminent. The domestic water heater serves the showers and sinks to the restrooms and locker rooms at the Wheat Ridge Recreation Center. Failure would result in no hot water for minimum 7 weeks based on equipment lead time. There are no guarantees on existing equipment longevity; expedited replacement is necessary. RECOMMENDATIONS Staff recommends approval of payment for the provision and installation of a domestic water heater for the City of Wheat Ridge Recreation Center. RECOMMENDED MOTION: “I move to approve the motion approving payment of $85,553.00 to Long Building Technologies for the provision and installation of a domestic water heater for the City of Wheat Ridge Recreation Center.” Or, “I move to postpone indefinitely the motion approving payment of $85,553.00 to Long Building Technologies for the provision and installation of a domestic water heater for the City of Wheat Ridge Recreation Center for the following reason(s) .” REPORT PREPARED/REVIEWED BY: Kion Gibbs, Manager of Facility Operations Karen A. O’Donnell, Director of Parks & Recreation Whitney Mugford-Smith, Procurement Manager Allison Scheck, Acting City Manager/Administrative Services Director ATTACHMENTS: 1. RFQ PVI Domestic Water Heater Replacement 2. Long Building Technologies Proposal REQUEST FOR QUALIFICATIONS RFQ-22-PVI Domestic Water Heater Replacement SUBMISSION DUE DATE: Thursday, July 28, 2022 BY 2 PM Mountain Time WATER HEATER REPLACEMENT Recommended Pre-Proposal Conference: 4005 Kipling St., Wheat Ridge, CO 80033, 2021 AT 11 AM BidNetdirect.com is the ONLY acceptable repository for submission documents. Late submissions and submissions otherwise received WILL NOT be considered for award. Contact with the issuing department may result in disqualification, please direct questions to contact as listed below. City of Wheat Ridge Procurement Attn: Whitney Mugford-Smith wmsmith@ci.wheatridge.co.us DOCUMENTS PREPARED BY: PURCHASING & CONTRACTING DIVISION on behalf of PARKS & RECREATION- FACILITIES DIVISION ANTIICIPATED KEY DATES RFQ Issued: July 15, 2022 Pre-Proposal Meeting/ Conference: July 20, 2022 at 11AM MT Question Acceptance Deadline: July 22, 2022 at 2PM MT Qualifications Due by: August 1,2022 at 2PM MT Anticipated Contract Execution: August 2022 Anticipated Start Date: August 2022 IMPORTANT: PLEASE READ ENTIRE DOCUMENT – DO NOT REMOVE ANY PAGES Per the attached specifications, terms, and conditions. ATTACHMENT 1 TABLE OF CONTENTS PAGE #: COVER PAGE ....................................................................................................................................................... 1 TABLE OF CONTENTS ........................................................................................................................................ 2 ANTICIPATED SCOPE OF WORK ......................................................................................................................... EVALUATION CRITERIA ........................................................................................................................................ SELECTION PROCESS ......................................................................................................................................... INFORMATION TO PROPOSERS ......................................................................................................................... ADMINISTRATIVE & OFFEROR INFORMATION .................................................................................................. SUBMISSION .......................................................................................................................................................... FORMS VENDOR INFORMATION FORM ........................................................................................................................ CERTIFICATE OF WORKER WITHOUT AUTHORIZATION FORM .................................................................. NON-DISCRIMINATION ASSURANCE FORM ................................................................................................... NON-COLLUSION AFFIDAVIT ............................................................................................................................ VENDOR’S QUALIFICATION FORM .................................................................................................................. SAMPLE AGREEMENT ....................................................................................................................................... ATTACHMENTS ATTACHMENT A – PRICE SCHEDULE ........................................................................................................ CHECK-LIST ................................................................................................................................................... ADDENDUM (if applicable) INTRODUCTION, BACKGROUND & SCOPE INTRODUCTION The City of Wheat Ridge (the “City”) Municipal Building is located in the northwest Denver metropolitan area, with municipal offices at 7500 W 29th Avenue, Wheat Ridge, CO 80033. The City’s area consists of about nine square miles of rolling land adjacent to Interstate 70 transportation corridor between Denver and the Rocky Mountains. The topography is somewhat unique, with a natural ridge traversing the City. The City is a suburban community of approximately 33,000 residents. The City is a home-rule municipality with eight council members, and a city manager and mayor form of government. BACKGROUND The City is seeking qualified contractors to provide and install a new PVI Turbopower 1500 L250A-TP power burner boiler, or a domestic boiler/water heater of similar/superior functionality and operation, to replace the existing 13 year old PVI Atmospheric Gas Boiler unit (serial number ending: 26498). The goal is to contract with a qualified individual or firm to provide the new unit, the installation of the new unit, as well as initial start of the new unit. SCOPE OF WORK The actual services to be performed will be determined by the City, to include—but not limited to—the following areas: • Decommissioning, removal, and disposal of current PVI Atmospheric Gas Boiler unit; including: o Disconnecting electrical o Disconnecting water in and water out lines o Disconnecting control wiring o Disconnecting old vent piping o Haul away and properly dispose of the unit • Installation of new PVI Turbopower 1500 L250-A TP or similar/superior unit o Connecting electrical o Connecting water in and water out lines o Connecting control wiring o Connecting vent piping o Startup and operational testing • New double wall B vent • Any piping, fitting, connectors needed to complete the installation of the new unit • Submission of State Boiler Inspection Paperwork EVALUATION CRITERIA & PROCESS Evaluation Criteria To simplify the review process and to obtain the maximum degree of comparability, the submission must follow the outline described below and—at a minimum—contain the requested information. Firms will be judged not only on their past experience for the type of work involved, but also on their ability to address issues critical to the success of the project requirements outlined in this RFQ. Submittals should be formatted to correspond exactly to the bullets. Indexes for each of the categories are preferred, in the same order. Additional relevant information is encouraged, though proposals should not exceed 75 letter-sized pages in length. Omissions or incomplete responses in terms of content or aberrations in form may, at the City’s discretion, render the proposal non-responsive. If you would like to incorporate the City marketing logo or City seal in your submittal, please contact: Jessica Chavez, via email: jchavez@ci.wheatridge.co.us Clear and concise responses are appreciated. Redundancy is discouraged. Submit the following information, preferably in this order: Signature Page and Forms (forms are required in order to qualify) 1. Proposer Information and Addendum Acknowledgement 2. Worker Without Authorization Form 3. Non-Discrimination Assurance Form 4. Non-Collusion Affidavit 5. Vendor Qualifications 1. Firm Capabilities and References for Similar Work Completed by Proposed Team a. Provide an overview of your company’s history. Include information on management, firm size, number of employees, years in business, location of working office, and other DBA’s. b. Provide references: include the name, current phone number and email address of the owner’s project manager for each project listed. Provide total dollar amount and a brief summary of the work performed, listing any sub-consultants you may have partnered with. c. Include any supplemental references or qualifications that may attest to your firm’s current ability to provide the required services. d. Demonstrate experience in overseeing and coordinating multiple, concurrent projects. e. Discuss your firm’s familiarity with the project area and local construction market. f. State any MBE/WBE, disadvantaged business enterprise participation. g. Provide a statement agreeing to provide and maintain insurance per the RFP requirements, if awarded. h. Disclose any relationships the owner or employees may have that could be construed or perceived as personal or organizational conflicts of interest. i. Provide a brief summary regarding your firm’s financial stability, including a current financial statement detailing profit and loss for the past three years. Disclose whether or not your firm or any affiliates have filed for bankruptcy or reorganization under bankruptcy laws. j. Detail any recycling, sustainable, or greening efforts made by your firm. 2. Scope of Submission a. Identify the team members and their respective roles, including any sub-consultants. b. Provide resumes of essential staff; indicate experience with similar projects, credentials of training, education, and certifications, and lengths of time with the company, c. Present a brief discussion regarding the experience and qualifications of the team working on similar projects together. Outline experience and references of the project manager on similar projects in the same capacity. d. Describe individual experiences with the City or other government agencies. Detail experience in the Denver metropolitan and other areas in Colorado. e. Describe the unique strengths and relevant experience your firm offers. 3. Effective Project Approach, Timeline, and Safety a. Provide information on current and projected (next 9 months) workload and how this project will be accomplished within that framework, outlining various phases, if any. b. Detail your approach in managing work to meet project deadlines, or an expedited schedule if needed. c. Identify any foreseeable problems in the implementation of the program. d. Describe how the objectives identified will be achieved. e. Demonstrate your understanding of the technical requirements. f. Provide samples of items similar to those requested in this RFP produced by the proposing firm. g. Discuss your customer service philosophy and your firm’s approach toward client communication and reporting. h. Discuss quality control methodology, including adherence to State and local procedures, construction documentation coordination and completion, and assurance of construction quality. i. Discuss cost control methodology, including estimates of probable cost within the owner’s established budget and coordination of value engineering activities. j. Explain your firm’s approach toward working with CM/GC. k. Discuss your firm’s billing procedures, claims processing, reporting, collection, and customer service policies. l. Provide an equipment list. 4. Implementation, Installation, or Plan Effectiveness a. Discuss your plan for procuring the unit. b. Discuss your typical installation plan. c. Detail the level of involvement needed from the City to complete the project. 5. Price and/ or Total Cost of Ownership a. Provide an equipment list along with anticipated costs b. Provide hourly rates for installation services and any other costs associated with this effort c. Provide a detailed statement of fees including individual rates for partners and support staff. Include all reimbursable expenses, which should be assumed to be billed at cost, without mark-up. d. Outline all rates/fees for staff including fringe benefits, payroll taxes, insurance, and overhead costs. e. List pricing for any or all of the requested services. f. Specify a maximum percentage of increase for renewal years subsequent to initial contract. g. Detail any value-added services such as reporting, training, public outreach, educational programs, resources, health and safety programs, investments, or service at public events. Rates are negotiable The City reserves the right to base its evaluation on a “Should Cost” analysis to reflect the real costs to the City arising out of, or incidental to the award. The City shall look to substance more than format and shall perform its cost and price evaluation based on probable real costs. I. SELECTION PROCESS The selection committee may either recommend an award based on the proposals alone or elect to short-list firms and conduct interviews. The short-list process includes written notification to the short-listed firms, interviews with firm members, reference checks on the top-ranked firm, and the negotiation of fees. 1) Short List: Submittals will be evaluated in accordance with the evaluation criteria above. The panel will review and score all proposals received. Firms with the highest scores may be invited to participate in oral interviews with the evaluation committee. 2) Oral Interviews: It is anticipated that oral interviews will be conducted in accordance with the schedule below. Short-listed firms will be notified in writing and invited to interview. Key personnel from the firm and major consultants who will be directly involved with the project should attend the interview. The selection committee will be interested in knowing more about the firm’s previous experiences, the perceived ability to meet specified deadlines, and the overall project approach, and will appreciate the opportunity to converse with individuals who will act as the primary contacts for the project. 3) Fee Proposals and Final Selection: The City will attempt to negotiate a contract with the highest ranked firm, following the interview process. ADMINISTRATIVE AND OFFEROR INFORMATION 1. PROPOSAL OPENING, EVALUATION, AND AWARD There is no public opening. Names of each proposer will be posted on the city website. Proposals will be examined after opening and will be evaluated based on the evaluation criteria. The firm selected for the award will be chosen based on the apparent Best Value to the City and not necessarily based on lowest price. The City reserves the right to make multiple awards if deemed in the best interest of the City. No proposal may be withdrawn for a period of sixty (60) calendar days of the Proposal Opening date. 2. SALES AND USE TAXES Don’t include sales or use tax in your proposal, as the City of Wheat Ridge is exempt from City, County, State, and Federal sales and excise taxes. Certificates will be issued upon request. City of Wheat Ridge Sales Tax Exempt: 98-03515 3. PROPOSER QUALIFICATIONS No proposal shall be accepted from and no contract will be awarded to any person, firm, or corporation that is in arrears to the City of Wheat Ridge, upon debt or contract that is a defaulter, as surety or otherwise, upon any obligation to the City, or that is deemed irresponsible or unreliable by the City. If requested, proposers shall be required to submit satisfactory evidence that they have a practical knowledge of the particular supply or service bid upon and that they have the necessary financial resources to provide the proposed supply or service. 4. RIGHT TO INVESTIGATE The City reserves the right to investigate and confirm the proposer’s financial responsibility. This may include financial statements, bank references, and interview with past consultants, employees, and creditors. Unfavorable responses to these investigations are grounds for rejection of the proposal. 5. NO COMMITMENT BY THE CITY OF WHEAT RIDGE This Request for Proposals does not commit the City of Wheat Ridge to award any costs or to pay any costs, or to award any contract, or to pay any costs associated with or incurred in the preparation of a proposal to this request, or to procure or contract for services or supplies. In acceptance of proposals, the City of Wheat Ridge reserves the right to negotiate further with one or more of the contractors as to any features of their proposals, and to accept modifications of the work and price when such action will be in the best interest of the City. This includes solicitation of a best and final offer from one or more of the proposers. 6. PROPOSAL REPRESENTATION Each proposer must sign the proposal and shall give his or her full business address on the form provided in this proposal. Proposals by partnerships shall be signed with the partnership name by one of the members or by an authorized representative. Proposals by corporations shall be signed with the name of the corporation, followed by the signature and designation of the president, secretary, or other person authorized to bind it in the matter and shall have the corporate seal affixed thereto. 7. ANTI COLLUSION CLAUSE No officer or employee of the City of Wheat Ridge, and no other public official or employee who may exercise any function or responsibilities in the review or approval of this undertaking, shall have any personal or financial interest—direct or indirect—in any contract or negotiation process thereof. The above compliance request will be part of all City of Wheat Ridge contracts for this service. 8. INDEMNIFICATION: Contractor hereby indemnifies and agrees to hold the City and its representatives and agents harmless for and on account of any act or omission of the Contractor in the execution and completion of the project specified herein, and this indemnification shall extend to and include Bodily Injury, Property Damage or Personal Injury, including compensatory, economic, punitive or special damages suffer by any person or entity in connection with the project. Contractor agrees to defend the City hereunder and indemnify the City, to include all court costs and attorney’s fees incurred in any defense required to be undertaken by the City as a result of the actions of the Contractor on the project. Notwithstanding the foregoing, nothing contained herein shall be deemed a waiver by the City of any of the protections afforded the City by virtue of the provisions of the Colorado governmental Immunity Act (Colo. Rev. Stat. 24-10-101). 9. INSURANCE: Certificates of Insurance shall be attached to the executed contract documents and shall become part of the contract as information documents only. The certificates shall provide that the insurance shall not be cancelled or terminated prior to completion of the work and that thirty (30) days’ notice shall be given the City prior to cancellation of policies. The Contractor shall maintain a Commercial General Liability insurance policy to protect the Contractor and the City from any and all claims of bodily injury and property damage, including death, which may arise from the Contractor’s operations and completed operations under this Contract, including the work of its subcontractors. The liability policy shall be the primary and non-contributory insurance for such claims and shall not contain any “excess” or “other insurance” clauses which limit its primary coverage. The insurance requirements are as follows: Certificate Holder: City of Wheat Ridge 7500 West 29th Avenue Wheat Ridge, CO 80033 Required City of Wheat Ridge, its officers and employees must be named as an additional insured to general liability policy. Required All policies as required shall provide a waiver of subrogation in favor of City of Wheat Ridge. Required Workers Compensation - statutory limits provided by an insurance carrier that is licensed to do business in Colorado. The policy shall contain a Waiver of Subrogation on behalf of City of Wheat Ridge. Employer’s liability: $100,000 each accident $500,000 disease policy limit $100,000 disease each employee Required Commercial General Liability $1,000,000 each occurrence Required $2,000,000 general aggregate $1,000,000 personal injury $2,000,000 products and completed operation aggregate If applicable to the scope of work, the following shall be included: -No exclusion for abuse or molestation -No exclusion for assault and battery -Liquor liability Builder’s Risk – The Contractor shall insure 100% of the replacement value of the work and materials installed and delivered, plus the replacement value of the work or materials furnished or delivered but not yet paid for by the City, for the life of the contract on an All-Risk basis, subject to the normal exclusions, terms, and conditions of the standard Builder’s Risk insurance policy with an insurance company or companies acceptable to the City. The Contractor shall be responsible for all damage to the work under construction until acceptance of and release of responsibility for the work to the City. Required Commercial Automobile Liability – including owned, hired, and non-owned vehicles. (If autos are used in the performance of work under this agreement). Combined single limit for bodily injury and property damage. $1,000,000 each accident Required Professional Liability/Errors and Omissions $1,000,000 each claim $1,000,000 aggregate Required The insurance requirements specified by the City shall remain in effect for the full term of the contract and/or agreement and any extension thereof. Updated Certificates of Insurance shall be sent to the City during the full term of the contract and/or agreement and any extension thereof. Required Any subcontractors must meet the same insurance requirements for the contract or purchase order unless Procurement has approved a deviation. Required 10. LAWS AND REGULATIONS All applicable State of Colorado and Federal laws, City and County ordinances, licenses and regulations shall apply to the award throughout, and herein incorporated here by reference. The Proposer shall confirm its compliance with the 80% Colorado labor requirement of the Keep Jobs in Colorado Act, H.B. 13-1292, including C.R.S. 8-17-101,et seq. 11. SUBCONTRACTING No portion of this proposal may be subcontracted without the prior written approval of the City. 12. SALES PROHIBITED / CONFLICT OF INTEREST No officer, employee, or member of City Council shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies, or services—where such officer or employee exercises (directly or indirectly) any decision-making authority concerning such sale or has any supervisory authority over the services to be rendered. Soliciting or accepting any gift, gratuity favor, entertainment, kickback, or any items of monetary value from any person who has or is seeking to do business with the City of Wheat Ridge is prohibited. 13. MODIFICATION OF AGREEMENT No modification of award shall be binding upon the City, unless made in writing and signed by authorized agents of both parties. 14. CANCELLATION Either party may cancel the award in the event that a petition—either voluntary or involuntary—is filed to declare the other party bankrupt or insolvent, or in the event that such party makes an assignment for the benefit of creditors. 15. TERMINATION OF AWARD FOR CAUSE If through any cause the successful proposer shall fail to fulfill in a timely and proper manner its obligations, or if the successful proposer shall violate any of the covenants, agreements, or stipulations of the award, the City shall thereupon have the right to terminate the award by giving written notice to the successful proposer of such termination—specifying the effective date of termination. In that event, all finished or unfinished services, reports, or other materials prepared by the successful proposer shall—at the option of the City—become its property, and the successful proposer shall be entitled to receive just, equitable compensation for any satisfactory work completed, or prepared documents/materials furnished. Notwithstanding the above, the successful proposer shall not be relieved of liability to the City for damage sustained by the City by virtue of breach of the award by the successful proposer, and the City may withhold any payments to the successful vendor for the purpose of set-off, until such time as the exact amount of damages due the City from the successful proposer is determined. 16. TERMINATION OF AWARD FOR CONVENIENCE The City may terminate the award at any time by giving written notice to the successful vendor of such termination (specifying the effective date thereof) at least thirty (30) working days before the effective date of such termination. In that event all finished or unfinished services, reports, materials(s) prepared or furnished by the successful proposer under the award shall—at the option of the City—become its property. If the award is terminated by the City as provided herein, the successful vendor will be paid an amount which bears the same ratio to the total compensation as the services actually performed or material of compensation previously made. If the award is terminated due to the fault of the successful proposer, termination of award for cause relative to termination shall apply. 17. EQUAL OPPORTUNITY The successful firm will agree not to refuse to hire, discharge, promote, demote, or to otherwise discriminate in matters of compensation against any person otherwise qualified solely because of race, creed, sex, national origin, ancestry, or physical handicap. It shall be a condition that any company, firm, or corporation supplying goods or services must be in compliance with the appropriate areas of the Americans with Disabilities Act of 1990 as enacted, and from time to time amended, and any other applicable Federal regulation. A signed, written certificate stating compliance with the Americans with Disabilities Act may be required, upon request, by the City. 18. DISADVANTAGED BUSINESS ENTERPRISES Disadvantaged business enterprises are afforded full opportunity to submit bids and will not be discriminated against on the grounds of race, color or national origin in consideration for an award. As a recipient of Federal funds, subject to United States Department of Transportation Title VI Regulations at 49 CFR Part 21 the Civil Rights Act of 1964, the City of Wheat Ridge and its responsible agents, contractors and consultants assure that no person shall on the grounds of race, color or national origin be excluded from participation in the opportunity to bid or be discriminated against in consideration of award of this project. The Unites States has a right to seek judicial enforcement with regard to any matter arising under Title VI, 49 CFR Part 21. 19. COMMON LANGUAGE Unless otherwise specified in this document, all words shall have a common language unless the context in which they are used clearly requires a different meaning. Words in the singular number include the plural, and in the plural include the singular. Additionally, words in the masculine gender include the feminine and the neuter, and when the sense so indicates, words of the neuter gender may refer to any gender. The words “firm,” “bidder,” “vendor,” “offeror,” “contractor,” “consultant,” and “proposer” refer to any person, partnership, corporation, or other entity. 20. PROPRIETARY INFORMATION The evaluation committee will hold information provided by proposers during the solicitation process in confidence until the date of an award. After that date, proposals will become public record. Proposers may request parts of their proposals to remain confidential and shall indicate as such in the proposal and on the appropriate proprietary or financial pages. All information included in any proposal that is of a proprietary nature must be clearly marked. The City shall be held harmless from any claims arising from the release of proprietary information not clearly designated as such by the proposing firm. An entire proposal shall not be considered proprietary. 21. COMPETITIVENESS AND INTEGRITY The Purchasing Office maintains control of its internal and third-party communications during the procurement process to prevent biased evaluations and compromises of confidential information, and to preserve the competitiveness and integrity of such procurement efforts. Proposers should not disclose their pricing to any employees of the City other than the contract representative. Attempts by proposers to establish informal communication channels regarding this procurement will be viewed negatively and shall result in rejection of the offending firm’s offer. 22. PROPOSAL FORMAT All responses to this Request for Proposal shall use the respondent’s format, except for those pages which have blanks to be filled in by the respondent, or those pages marked for return with proposal. A proposal can be rejected by the City if the submitting firm fails to completely fill in all blanks for evaluation of the proposal or fails to answer all questions. Proposal should be submitted initially on the most favorable terms. All proposals shall be prepared in a comprehensive manner as to content; however, no necessity exists for expensive binders or promotional materials. All costs—including travel and expenses incurred in the preparation of this proposal—shall be borne solely by the proposer. 23. PROPOSAL REJECTION AND / OR PARTIAL ACCEPTANCE The City reserves the right to the following: • Reject any and all proposals. • Accept other than the lowest price. • Waive minor defects or technicalities, formalities, and informalities. • Accept in whole or in part such proposal where it is deemed advisable. • Make an award on the basis of the apparent greatest benefit to the City of Wheat Ridge. • Alter the scope of work reasonably and RFQ documents until a contract is executed. 24. GOVERNING LAW The laws of the State of Colorado shall govern any contract executed between the successful contractor and the City. Further, the place of performance and transaction of business shall be deemed to be in the County of Jefferson, State of Colorado. In the event of litigation, the exclusive venue and place of jurisdiction shall be the State of Colorado—more specifically, Jefferson County, Colorado. 25. TAXES AND LICENSES BY THE AWARDED CONTRACTOR The contractor shall promptly pay—when they are due—all taxes, excises, license fees, and permit fees of whatever nature applicable to work which it performs under this agreement and shall take out and keep current all required municipal, County, State or Federal licenses required to perform this work. Additionally, the contractor shall furnish the City—upon request—duplicate receipts or other satisfactory evidence showing or certifying to the proper payment of all required licenses and taxes. Contractor shall promptly pay—when due—all bills, debts, and obligations it incurs performing work under this agreement, and to allow no lien, mortgage, judgment, or execution to be filed against land, facilities, or improvements owned by the City. 26. PROMPT PAYMENT DISCOUNTS In determining the most responsive price proposal(s) the City will consider all acceptable proposals on a basis of the net price to be paid after deduction of the discount specified in the respective proposals. Prompt payment discounts allowing less than 10 days for the discount to apply shall not be considered as a cost factor in the evaluation of proposals. In connection with any prompt payment discount offered, time will be computed from date of receipt of a correct invoice to include the receipt and acceptance of performance. 27. OWNERSHIP OF CONTRACT PRODUCTS All products produced from the awarded contract shall be the sole property of the City. 28. FUNDING There is in effect within the City of Wheat Ridge, Colorado, Section 2-4 of the City’s Code of Laws which limits the amount for which the City shall be liable to the amount expressly appropriated by the City Council, either through budgeted appropriation, or contract or bid award. The contractor is specifically advised of this Section 2-4 of the Code of Laws. This contract is specifically subject to the provisions of said Code Section. Funding of this contract for any time period after January 1st of the year succeeding the date of entry of this contract is expressly contingent upon appropriations being made by the City Council of the City of Wheat Ridge, Colorado. No promise—expressed or implied—is made that such funding will be approved by the City Council, acting in its legislative discretion. 29. INDEPENDENT CONTRACTOR The consulting firm is an independent contractor. Notwithstanding any provision appearing in this RFQ, all personnel assigned by the firm to perform work under the terms of this RFQ and any subsequent agreement shall be—and remain at all times—employees or agents of the firm for all purposes. The firm shall make no representation that it is the employee of the City for any reason. 30. EMPLOYMENT OF LABOR The Consultant and each of the approved sub-consultants shall hire qualified workers for the project who are citizens of the Unites States or legal resident aliens with first preference being given, insofar as practicable, to those having served in the armed forces of the United States and having been honorably discharged or released from active duty therein. The Consultant shall employ only competent persons to do the work, and whenever requested in writing by the City Representative, the Consultant shall discharge any person who commits trespass or in, in the opinion of the City Representative, disorderly, dangerous, unfaithful, insubordinate, incompetent or otherwise unsatisfactory. 31. DUE DILIGENCE Due care and diligence have been used in the preparation of this information and it is believed to be substantially correct. The responsibility, however, for determining the full extent to the exposure and the verification of all information shall rest solely with the proposer. The City is not responsible for any errors or omissions in the specification, or for the failure on the part of the proposer in determining the full extent of exposure. 32. DEBRIEFING After the project award has been made, vendors may contact the City Purchasing Agent to request a debriefing on the selection process, as well as a discussion of the strengths and weaknesses of their firm’s proposal. 33. SECURITY ACCESS CARDS The City will issue security access cards to assigned workers. It will be at the discretion of the City to determine if the access cards are issued specifically for each worker, or if a guest card will be issued. 34. COOPERATIVE PROCUREMENT The City of What Ridge encourages and participates in cooperative procurement endeavors undertaken by or on behalf of other governmental agencies including the Multiple Assembly of Procurement Officials (MAPO) and the Cooperative Educational Purchasing Council (CPEC). We hereby request that and member of MAPO/CPEC by permitted to avail itself of this contract and purchase as specified by the contract resulting from this solicitation request, at the contract prices established therein. Each governmental entity would establish its own contract, issue its own orders, be invoiced directly, make its own payments and issue its own exemption certificates as required. It is understood and agreed that the City of Wheat Ridge is not a legally binding party to any contractual agreement made between another governmental entity and the successful vendor as a result of this solicitation. The City shall not be liable for any costs or damages incurred by any other entity. 35. SAMPLE AGREEMENT A sample agreement is provided in the RFQ documents for informational purposes only. Do not complete or enclose with your submission. THANK YOU FOR YOUR INTEREST IN DOING BUSINESS WITH THE CITY OF WHEAT RIDGE RFQ-22- PVI Domestic Water Heater Replacement PROPOSER INFORMATION AND ADDENDUM ACKNOWLEDGMENT FEIN / SSN (Required) DUNS Federal ID number COMPANY NAME ADDRESS CITY STATE ZIPCODE PHONE CELL AUTHORIZED SIGNATURE REQUIRED—MUST BE IN INK or Digital PRINTED NAME TITLE EMAIL PROPOSER IS RESPONSIBLE FOR FOLLOWING UP ON ALL ADDENDA ACKNOWLEDGE ADDENDA: Proposer is responsible for confirming receipt of each addendum; please initial as applicable. #1 #2 #3 #4 DO NOT CONTACT THE REQUESTING DEPARTMENT OR MEMBERS OF THE EVALUATION COMMITTEE Signature acknowledges that proposer: 1) Has read the RFQ documents thoroughly prior to submitting a proposal, 2) Will fulfill the obligations in accordance to the scope of work or specifications, terms, and conditions, 3) Is capable of performing quality work to achieve the City objectives, and 4) Is submitting without collusion with any other individual or firm. Bidder must complete and SUBMIT this form with your bid/proposal or will be considered Non-Responsive and/or Non-Responsible and therefore disqualified from bidding. The vendor, whose name and signature appear below, certifies and agrees as follows: 1. The vendor shall comply with the provision of CRS 8-17.5-101 et seq. 2. The vendor shall not knowingly employ or contract with a worker without authorization to perform this work, or enter into a contract with a subcontractor who knowingly employs or contracts with a worker without authorization. 3. The vendor represents, warrants, and agrees that it (i) has verified that it does not employ any workers without authorization, through participation in the Basic Pilot Employment Verification Program administered by the Social Security Administration and Department of Homeland Security, or (ii) otherwise shall comply with the requirements of CRS 8-17.5-102(2)(b)(I). 4. The vendor shall comply with all reasonable requests made in the course of an investigation by the Colorado Department of Labor and Employment. If the vendor fails to comply with any requirement of this provision or CRS 8-17.5-101 et seq., the City may terminate an award for breach of contract, and the vendor shall be liable for actual and consequential damages to the City of Wheat Ridge. CERTIFIED and AGREED to this day of , 20 RFQ NUMBER AND TITLE: FIRM SUBMITTING PROPOSAL: (print full legal name) Authorized Signature: Printed Name: Attestation: (a corporate attestation is required) BY: (Corporate secretary, or equivalent) Place Corporate seal here, if applicable Bidder must complete and SUBMIT this form with bid/proposal or will be considered Non-Responsive and/or Non-Responsible and therefore disqualified from bidding. CITY OF WHEAT RIDGE, CO CERTIFICATION STATEMENT FOR WORKER WITHOUT AUTHORIZATION, COMPLIANCE TO HB 1343 Title VI of the Civil Rights Act of 1964 prohibits discrimination of the basis of race, color or national origin by any entity receiving Federal financial assistance. The City of Wheat Ridge is a recipient of Federal financial assistance and as such, it—as well as all of its responsible agents, contractors and consultants—is required by the United States Department of Transportation Title VI Regulations at 49 CFR Part 21 (the Regulations) to assure nondiscrimination. The City of Wheat Ridge assures that no person shall be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination on the grounds of race, color, or national origin under any program or activity conducted by the City. All bidders are hereby notified that the City of Wheat Ridge will affirmatively ensure that disadvantaged business enterprises will be afforded full opportunity to submit bids in response to all invitations and will not be discriminated against on the grounds of race, color or national origin in consideration for an award. This applies to all solicitations for bids for work or material subject to the Regulations, and for all proposals for negotiated agreements. The bidder, whose name and signature appear below, certifies and agrees as follows: 1. The bidder shall comply with the provisions of Title VI of the Civil Rights Act of 1964. 2. The bidder assures the City of Wheat Ridge that disadvantaged business enterprises are afforded full opportunity to submit bids as sub-contractors or sub-consultants and will not be discriminated against on the grounds of race, color or national origin in consideration for award. 3. The bidder shall comply with all reasonable requests made in the course of an investigation of Title VI, the Regulations and this assurance by the Colorado Department of Transportation, the US Department of Transportation or the City of Wheat Ridge, as a sub-recipient of Federal financial assistance. 4. The bidder agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under Title VI, the Regulations and this assurance. FIRM: (Print full legal name of company) AUTHORIZED SIGNATURE: Printed Name and Title: Date Certified and Agreed: Attestation: (A corporate attestation is required) Place corporate seal below: BY: Corporate Secretary or Equivalent Bidder must complete and SUBMIT this form with bid/proposal or will be considered Non-Responsive and/or Non-Responsible and therefore disqualified from bidding. CITY OF WHEAT RIDGE, CO NON-DISCRIMINATION ASSURANCE FORM TITLE VI REGULATIONS AT 49 CFR PART 21 COMPANY SUBMITTING BID ________________________________________________ STATE OF: COUNTY OF: __________________________________________________________ of lawful age, being duly sworn, on oath says that (s)he is the agent authorized by the Bidder to submit the attached bid. Affidavit further states that the Bidder has not been a party of any collusion among Bidders in restraint of freedom of competition by agreement to bid at a fixed price or to refrain from bidding; or any Federal, State or Municipal official or employees as to quantity, quality, or price in the prospective Contract, or any other items of said prospective Contract; or in any discussions between bidders and any Federal, State or Municipal official concerning exchange of money or other thing of value for special consideration in the letting of a Contract. NAME TITLE Subscribed and sworn to before me this day of , 20__ NOTARY PUBLIC SIGNATURE My Commission Expires: Bidder must complete and SUBMIT this form with bid/proposal or will be considered Non-Responsive and/or Non-Responsible and therefore disqualified from bidding. CITY OF WHEAT RIDGE, CO NON-COLLUSION AFFIDAVIT RFQ-22- PVI Domestic Water Heater Replacement The following information is considered the minimum required to evaluate the qualifications of vendors intending to provide services for the City of Wheat Ridge. Any additional information the vendor feels is pertinent, or which clarifies items below, is welcome and may be attached. The City will contact previous clients and references as a part of the evaluation process; thus, letters of reference may shorten the evaluation period, if they are attached to this form. 1. Name of firm: Address: State: Zip: Phone: Principal in Charge: Email: Type of business organization: Sole Proprietorship Corporation Partnership Limited Partnership State in which incorporated: Joint Venture Name, position, and address of contact person regarding the information on this form: Number of years your firm has done business under current name: Previous firm names and / or partnerships (or firms you have had any interest in), and number of years of each name: 2. Attach a list of all major accounts for the past two (2) years. For each account indicate the following: • Original contract bid amount • Owner (address, telephone number, and contact name) • Account services provided • Litigation or claims related to each project—state nature of claim(s), the parties, the dollar value, the status and outcome—including the value of any judgment(s) or settlement(s) • Name, address, and phone number(s) of reference(s) CITY OF WHEAT RIDGE, CO VENDOR QUALIFICATION FORM RFQ-22- PVI Domestic Water Heater Replacement 3. List major equipment, facilities, number and type of employees available for City contract work. Specify type of work normally done by your forces, and type of work you normally subcontract. 4. Have you ever terminated or abandoned any work prior to completion, or had work completed by others? No Yes If yes, describe the situation: 5. Has your firm—or any firm you have had any interest in—ever been debarred or prohibited from contract work with any government or private institution? No Yes If yes, describe the situation: City Staff will evaluate all qualification forms. The evaluation will include the following: • Verification of statements and information provided • Ability to perform work of similar nature • Financial stability and capability • Any pattern of controversy, poor management, delayed claims, late completion, inferior service or equipment, or other undesirable characteristics This qualification process is not intended to restrict competition. The intent is to protect the City’s legitimate interests by ensuring that vendors are competent, capable of quality work, and financially able to complete the work awarded. Bidder must complete and SUBMIT this form with bid/proposal or will be considered Non-Responsive and/or Non-Responsible and therefore disqualified from bidding. RFQ-22- PVI Domestic Water Heater Replacement SAMPLE AGREEMENT, FOR REVIEW ONLY THIS AGREEMENT made this day of MONTH, YEAR, by and between the City of Wheat Ridge, Colorado, hereinafter referred to as the “City” or “Owner” and (company name , (company address) , hereinafter referred to as the “Contractor.” WITNESSETH, that the City of Wheat Ridge and the Contractor agree as follows: ARTICLE 1 – SERVICES The Contractor shall serve as the City’s contractor and provide as a minimum all of the professional services required as per RFQ-22-PVI Domestic Water Heater Replacement, as more fully described in the Request for Proposal and Contractor’s response to the RFQ (Exhibit 1) incorporated herein by reference. ARTICLE 2 – TERM The work to be performed under this agreement shall commence promptly after receipt of a fully-executed copy of the agreement, to the extent that the Contractor has been authorized to proceed by the City. Completion shall be within THIRTY (30) CALENDAR DAYS or by . The City may, upon mutual written agreement by the parties, extend the time of completion of services to be performed by the Consultant, if needed. THE TERM FOR THIS AGREEMENT IS THROUGH MONTH, DATE, YEAR, WITH THE OPTION TO RENEW FOR FOUR (4) ADDITIONAL ONE-YEAR PERIODS, AT THE SOLE DISCRETION OF THE CITY. If your firm has never performed work for the City, the initial term of the agreement may be six (6) months, at the sole discretion of the City. At the end of each year, if the City deems the Contractor’s performance is acceptable and the pricing remains the same, the agreement may continue with automatic renewals. The agreement may be automatically renewed if: • The City fails to contact your firm prior to the end of the current term regarding the desire to renew. • All pricing remains the same. • The scope of work or specifications are not changed or modified. If at the end of each year the City desires to rebid, or the Contractor’s performance is not acceptable, the City and Contractor may elect to continue the agreement on a month-to-month basis until the rebid process is complete. ARTICLE 3 – PAYMENT AND FEE SCHEDULE It is understood and agreed by and between the parties hereto, that the City shall pay the Contractor for services provided, and the Contractor shall accept a not-to-exceed amount of (written dollar amount) , ( $ numerical dollar amount) as full payment for such services. Pricing shall remain firm for each renewal period. The City hereby agrees to pay the Consultant the amounts required for additional work as deemed necessary, at the unit prices set forth in the Consultant’s proposal, with a total contract amount not to exceed (written dollar amount), ($ numerical amount), in accordance to the provisions and subject to the conditions as set forth in this agreement and the documents referred to above. It is understood and agreed by and between the parties hereto, that the City shall pay the Consultant for services rendered, $ .00 per hour. There is no charge for computer, telephone, postage, copies, or other ordinary costs and expenses. A. Invoices by Task Invoices will be submitted monthly by the Contractor for services performed and expenses incurred, pursuant to this agreement during the prior month. The payment will be expedited by the user department and processed as a VISA transaction within two business days of City approval. The City may elect the alternative method of payment by the Treasurer’s Office through proper accounting procedures. Payment is then made to the Contractor within thirty (30) days of receipt. A check is mailed to the Contractor. B. Funding There is in effect within the City of Wheat Ridge, Colorado, a provision of the City’s Code of Laws which limits the amount for which the City shall be liable to the amount expressly appropriated by the City Council, either through budgeted appropriation, or contract or bid award. The contractor is specifically advised of the provisions of this portion of the Code of Laws of the City of Wheat Ridge, which was enacted pursuant to Ordinance 787, Series of 1989, and expressly incorporated herein. This contract is specifically subject to the provisions of said Ordinance and adopted Code Section. ARTICLE 4 – INDEPENDENT CONTRACTOR In performing the work under this agreement, the Contractor acts as an independent contractor and is solely responsible for necessary and adequate worker’s compensation insurance, personal injury and property damage insurance, as well errors and omissions insurance. The Contractor, as an independent contractor, is obligated to pay Federal and State income tax on monies earned. The personnel employed by the Contractor are not and shall not become employees, agents, or servants of the City because of the performance of any work by this agreement. The Contractor warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for it, to solicit or secure this agreement, and that it has not paid or agreed to pay any company or person—other than bona fide employees working solely for the Contractor—any commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or resulting from the award or making of this agreement. For breach or violation of this warranty the City will have the right to annul this agreement without liability or in its discretion to deduct from the agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. ARTICLE 5 – INSURANCE In accordance with Article 4 above, the Contractor shall furnish a certificate of insurance upon notification of award, and prior to performance. Work shall not commence under this agreement until the Contractor has submitted to the City and received approval thereof, a certificate of insurance showing compliance with the following minimum types and coverages of insurance: Type of Insurance Minimum Limits of Liability Worker’s Compensation, Coverage A Statutory, including occupational disease coverage for all employees at work site. Employer Liability, Coverage B $500,000 per person $500,000 per accident $500,000 each disease Commercial General Liability (including Premises-Operations, Independent Contractor’s Protective, Broad Form Property Damage, and Contractual Liability) • Bodily Injury • Property Damage $1 million per occurrence $2 million aggregate $1 million per occurrence $2 million aggregate An endorsement covering any explosion, collapse, and underground exposures, “XCU,” in the Commercial General Liability policy is also required. Comprehensive Automotive Liability (owned, hired, and non-owned vehicles) • Bodily Injury • Property Damage $2 million per occurrence $2 million per occurrence The City of Wheat Ridge shall be named as additional insured on all liability policies. Insurance shall include provisions preventing cancellation without 30 days prior notice by certified mail to the City. Submit a proposal ONLY if you are prepared to complete this requirement. Nothing herein shall be deemed or construed as a waiver of any of the protections to, which the agencies may be entitled pursuant to the Colorado Governmental Immunity Act, Sections 24-10-101, CRS, as amended. ARTICLE 6 – INDEMNIFICATION The Contractor agrees to indemnify, defend, and to hold the City and its agents, officials, officers and employees harmless for, from and against any and all claims, suits, expenses, damages, or other liabilities—including reasonable attorney fees and court costs arising out of damage or injury to persons, entities, or property causes or sustained by any person or persons to the extent caused by the negligent performance or failure of the Contractor to provide services pursuant to the terms of this agreement. ARTICLE 7 – EQUAL EMPLOYMENT OPPORTUNITY The Contractor shall not discriminate against any employee or applicant for employment because of age, race, color, religion, sex, or national origin. The Contractor shall adhere to acceptable affirmative action guidelines in selecting employees and shall ensure that employees are treated equally during employment, without regard to age, race, color, religion, sex, or national origin. Such action shall include—but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training—including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices provided by the local public agency setting forth the provisions of this nondiscrimination clause. The Contractor will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this agreement so that such provisions will be binding upon each subcontractor—provided that the foregoing provisions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials. ARTICLE 9 – CHARTER, LAWS, AND ORDINANCES The Contractor at all times during the performance of this agreement, agrees to strictly adhere to all applicable Federal, State, and local laws, rules, regulations, and ordinances that affect or govern the work as contemplated under this agreement. ARTICLE 10 – LAW AND VENUE The laws of the State of Colorado shall govern as to the interpretation, validity, and effect of this agreement. The parties agree that venue and jurisdiction for disputes regarding performance of this contract is with the District Court of Jefferson County, Colorado. ARTICLE 11 – TERMINATION The Contractor acknowledges that his failure to accomplish the work as described shall be considered a material breach of the contract and entitle the City to consequential damages resulting from failures, acts, or omissions— including, but not limited to re-procurement costs, insufficient or improper work. The City and the Contractor agree that this agreement may be canceled for cause by either party, with a fifteen (15) day prior written notice. The cost of completing the portion of the work which remains unperformed at the time of such termination shall be deducted from the contract price before payment is made. The City may terminate the agreement for its convenience, upon thirty (30) days written notice. In the event of such termination the Contractor will be paid for all work and expenses incurred up until the time of such termination. All work accomplished by the Contractor prior to the date of such termination shall be recorded, and tangible work documents shall be transferred to and become the sole property of the City, prior to payment for services rendered. ARTICLE 12 – NOTICES Contact Information City Contractor Name: Office Phone: Cell Phone: Email Address: Address: City, State, Zipcode ARTICLE 13 – ASSIGNMENT AND SUBCONTRACTORS The duties and obligations of the Contractor arising hereunder cannot be assigned, delegated, nor subcontracted except with the express written consent of the City. The subcontractors permitted by the City shall be subject to the requirements of this agreement, and the contractor is responsible for all subcontracting arrangements, as well as the delivery of services as set forth in this agreement. The contractor shall be responsible for the performance of any subcontractor. ARTICLE 14 – SEVERABILITY To the extent that the agreement may be executed and performance of the obligations of the parties may be accomplished within the intent of the agreement, the terms of this agreement are severable. Should any term or provision hereof be declared invalid or become inoperative for any reason, such invalidity or failure shall not affect the validity of any other term or provision hereof. The waiver of any breach of a term hereof shall not be construed as a waiver of any other term, or the same term upon subsequent breach. ARTICLE 15 – INTEGRATION OF UNDERSTANDINGS This agreement is intended as the complete integration of all understanding between the parties. No prior or contemporaneous addition, deletion, or other amendment hereto shall have any force and effect whatsoever, unless embodied herein in writing. No subsequent novation, renewal, addition, deletion, or other amendment hereto shall have any force or effect unless embodied in writing and signed by an authorized representative of the City and the contractor. ARTICLE 16 – PROHIBITION ON EMPLOYING OR CONTRATING WITH WORKERS WITHOUT AUTHORIZATION Workers Without Authorization – Public Contracts for Services CRS 8-17.5-101 and Public Law 208, 104th Congress, as amended and expanded in Public Law 156, 108th Congress, as amended: The Contactor certifies that he/she shall comply with the provisions of CRS 8-17.5-101et seq. The Contractor shall not knowingly employ or contract with a worker without authorization to perform work under this contract or enter into a contract with a subcontractor that knowingly employs or contracts with a worker without authorization. The Contractor represents, warrants, and agrees that it (i) has verified that it does not employ any workers without authorization, through participation in the Basic Pilot Employment Verification Program administered by the Social Security Administration and Department of Homeland Security, or (ii) otherwise will comply with the requirements of CRS 8-17.5-101 (2)(b)(l). The Contractor shall comply with all reasonable requests made in the course of an investigation by the CO Department of Labor and Employment. If the Contractor fails to comply with any requirement of this provision or CRS 8-17.5-101 et seq., the City may terminate this contract for breach and the Contractor shall be liable for actual and consequential damages to the City. ARTICLE 17 - DISADVANTAGED BUSINESS ENTERPRISES Disadvantaged business enterprises are afforded full opportunity to submit bids and will not be discriminated against on the grounds of race, color or national origin in consideration for an award. Consultants shall insert this provision in all sub-contracts for any work covered by this Agreement, so that it shall be binding upon each sub- consultant or sub-contractor providing labor or services. ARTICLE 18 – AUTHORIZATION Each party represents and warrants that it has the power and ability to enter into this agreement, to grant the rights granted herein, and to perform the duties and obligations described herein. IN WITNESS WHEREOF, the parties hereto have executed this agreement in two (2) copies, each of which shall be deemed an original on the day and year first written above. ATTEST: OWNER CITY OF WHEAT RIDGE 7500 W. 29TH AVENUE STEVE KIRKPATRICK, CITY CLERK WHEAT RIDGE, CO 80033 303-234-5900 DATE BUD STARKER, MAYOR (Seal) CONTRACTOR APPROVED AS TO FORM: NAME ADDRESS CITY, STATE, ZIPCODE GERALD DAHL, CITY ATTORNEY AUTHORIZED SIGNATURE ATTEST TO CONTRACTOR: PRINTED NAME NAME TITLE TITLE DATE DATE ATTACHMENT A RFQ-22- PVI Domestic Water Heater Replacement PRICE SCHEDULE SUBMIT ON THIS PAGE, OR ATTACH YOUR DETAILED PRICE OR REVENUE SCHEDULE NAME OF FIRM: ADDRESS: CHECK-LIST: The following information and forms must be included with your submittal, in this order: ➢ Proposer Information Sheet ➢ Acknowledgment of Addendum (if any) ➢ Workers Without Authorization Certification Form ➢ Non-discrimination Form ➢ Contractor’s Qualification Form (SHORT AND LONG FORMS INCLUDED IN DOCUMENT MASTER) ➢ Reference Authorization Form Please be certain to address the following in your proposal: ➢ Attendance at mandatory pre-bid meeting ➢ Qualifications ➢ Experience ➢ Current Workload ➢ Project Approach ➢ Fee Schedule Please review the sample agreement, but do not include a copy with your proposal submittal. EXHIBIT A AFFIDAVIT Only the successful vendor—if an individual or sole proprietor—will be required to complete Exhibit A. I, , swear or affirm under penalty of perjury, and under the laws of the State of Colorado, that: Check only one: I am a United States citizen, OR I am a permanent resident of the United States, OR I am lawfully present in the United States, pursuant to Federal law. I understand that this sworn statement is required by law because I have applied for a public benefit. I understand that State law requires me to provide proof that I am lawfully present in the United States prior to receipt of this public benefit. I further acknowledge that making a false, fictitious, or fraudulent statement or representation in this sworn Affidavit is punishable under the criminal laws of Colorado as perjury in the second degree under C.R.S. 18- 8-503 and it shall constitute a separate criminal offense each time a public benefit is fraudulently received. SIGNATURE DATE I, , a City of Wheat Ridge employee, observed the identification supplied by the above-named individual and affirm that it appears to be valid and is of the following form: CHECK ONLY ONE: Colorado drivers’ license or State-issued identification card United States Military or Military dependent’s card Merchant Mariner Card Native American Tribal document Valid drivers’ license or state-issued identification card bearing applicant’s photograph, issued by one of the following (all states are not listed here—only those that verify lawful presence): AL, AZ, AR, CA, CN, DE, DC, FL, GA, D, IN, IA, KA, NJ, NYM, ND, OH, OK, PA, RIM, SC, SD, VA, WV, AND WY Certificate verifying naturalized status, issued by an authorized agency of the United States, bearing applicant’s intact photograph impressed with the raised, embossed seal of the issuing agency Valid immigration documents demonstrating lawful presence, and verified through the Systematic Alien Verification for Entitlements, administered by the United States Citizenship and Immigration Services of the Department of Homeland Security—valid immigration documents as follows: • Unexpired foreign passport bearing an unexpired “Processed for I-551” stamp or with an attached unexpired “Temporary I-551” visa • Unexpired foreign passport accompanied by an “I-94” indicating a specific future “until” date • “I-94” with refugee or asylum status • Unexpired “Resident Alien” card, “Permanent Resident” card, “Temporary Resident” card, or “Employment Authorization” card SIGNATURE DATE EXHIBIT B RFQ-22- PVI Domestic Water Heater Replacement ACCEPTANCE OF CONDITIONS STATEMENT A. Proposing firm indicates acceptance of the following conditions: 1. City of Wheat Ridge prohibits contracting with firms that employ certain relatives of City employees, unless the City Council determines that the making of such a contract is in the City’s best interest. No City Council member, member of a City Board or Commission, Municipal judge, City Manager, City attorney(s), or employee of the City of Wheat Ridge—or any such person’s spouse, child, parent, brother, sister, dependent or person assuming a relationship being the substantial equivalent of the above—has an existing or pending (direct or indirect) financial, pecuniary, or personal interest in the proposing firm or this Request for Qualifications (RFQ), except as follows: 2. I / we hereby agree to all instructions, terms and conditions, and specifications contained herein. B. I / we acknowledge the following addenda: Proposing Firm’s Name: Address: Office Phone Number: Cell Phone Number: Submitted by: SIGNATURE DATE TITLE Attest (by officer if corporation) or notary (if individual): SIGNATURE My commission expires (if notarized): DATE EXHIBIT C: PROFESSIONAL SERVICES BILLING SAMPLE FORM Date: City Project Name and Number: City Contact Name or Department: Period of Service: through Summary below (see attached reports for further details) BASIC SERVICE Task: Fee Amount: % Complete: Fee Earned: Prior Billing: TOTAL: Fee earned: $ Less amount previously billed: $ Amount due: $ ADDITIONAL SERVICES: Amount due: $ TOTAL AMOUNT DUE: $ Vendor’s signature: Date: Printed name: Title: City Department approval (signature of approver): Title: Date: SUBMIT TO: ACCOUNTS PAYABLE CITY OF WHEAT RIDGE 7500 W. 29th Avenue Wheat Ridge, CO 80033 Project Agreement Quote Number: CRI22-01117 July 8, 2022 Page 1 of 5 Colorado Alaska Nevada Oregon Utah Washington Wyoming Delivering Confidence…Since 1965 Customer: Wheat Ridge Recreation Center Location: 4005 Kipling Street Wheat Ridge, Colorado 80033 Regarding: PVI Domestic Water Heater Replacement Thank you for the opportunity to provide solutions to your HVAC needs. We are pleased to offer our proposal to replace PVI Atmospheric Gas Boiler ending serial ending 26498 with A new PVI Turbopower 1500 L250A-TP power burner boiler. OUR PROPOSAL INCLUDES THE FOLLOWING: 1.Providing the following:  One (1) PVI Turbopower 1500 L250A-TP  New 14” double wall B vent  Miscellaneous piping, fittings, and connectors required to complete installation  Submitting State Boiler Inspection Paperwork  Labor 2.2. Disconnecting the old boiler to include:  Shutting down the boiler  Isolating and disconnecting the water in  Isolating and disconnecting the water out  Isolating and disconnecting the gas piping  Disconnecting the electrical  Disconnecting the controls wiring  Disconnecting the EPO wiring  Disconnecting the vent piping  Demoing the old vent piping  Moving the boiler out of building  Haul away and proper disposal of old boiler ATTACHMENT 2 Quote Number: CRI22-01117 July 8, 2022 Page 2 of 5 Alaska Colorado Nevada Oregon Utah Washington Wyoming Delivering Confidence…Since 1965 3. Connecting the new boiler to include:  Moving the boiler into the mechanical room and setting in place  Connecting the new vent piping and terminating on the roof  Connecting the gas piping  Connecting the cold water in  Connecting the hot water out  Connecting the controls wiring  Connecting the EPO wiring  Connecting the electrical  Startup and operational testing OUR PROPOSAL EXCLUDES THE FOLLOWING: 1. Providing the labor and materials for work not detailed to be done in this project’s scope of work, including:  Providing labor after our normal business hours 8:00 am to 4:30 pm Monday through Friday  Engineering, drawings, and permitting Quote Number: CRI22-01117 July 8, 2022 Page 3 of 5 Alaska Colorado Nevada Oregon Utah Washington Wyoming Delivering Confidence…Since 1965 YOUR INVESTMENT FOR THIS AGREEMENT IS ...................................... $85,553.00 Eighty-Five Thousand Five Hundred Fifty-Three Dollars This price will be held firm for 30 days. Please review this proposal and let us know if you have any questions. If this proposal is acceptable, please sign below. Thank you for selecting LONG Mechanical Solutions for this work. Your building technology partner Accepted by, Spencer Rich Spencer Rich Authorized Signature Lead Account Executive Printed Name Date: PO# TERMS AND CONDITIONS OF SALE 1. OFFER AND ACCEPTANCE – LONG Building Technologies, LONG Mechanical Solutions (LONG) offers to sell the equipment, materials and labor indicated in strict accordance with the terms and conditions stated herein. Submittal of a Purchase Order, contract or execution of this offer by Customer, or allowing LONG to commence work shall be deemed an acceptance of this offer, which offer and acceptance shall constitute a legally enforceable contract between Customer and LONG. Any additional or differing terms and conditions contained on Customer’s Purchase Order or contract (whether or not such terms materially alter this offer) are hereby rejected by LONG and shall not become part of the contract between Customer and LONG unless expressly consented to in writing by LONG. This offer is subject to acceptance within 30 days after date proposed and is based on all work being performed during regular working hours unless stated differently in the offer. 2. TERMS – Terms of Payment for goods shipped and/or services rendered hereunder shall be NET 10 days on receipt of invoice. Credit card processing fees are not included. Processing fees charged to LONG resulting from Customer payment by credit card will be added to customer’s invoices. LONG reserves the right to add to any account outstanding more than thirty (30) days a charge of one and one-half (1½%) percent of the principal amount due at the end of each thirty (30) day period. 3. INVOICING – LONG reserves the right to issue partial or complete invoices as material is furnished and as services are rendered. 4. PERFORMANCE – LONG shall not be liable for delays in delivery of equipment or performance of services hereunder where such failure or delay is due to the disapproval of LONG’s Credit Analysis, strikes, fires, Quote Number: CRI22-01117 July 8, 2022 Page 4 of 5 Alaska Colorado Nevada Oregon Utah Washington Wyoming Delivering Confidence…Since 1965 accidents, national emergency, failure to secure materials from the usual sources of supply, or any other circumstances beyond the control of LONG, whether of the causes enumerated above or not, which shall prevent LONG from making deliveries or performing services in the usual course of business. In the event of the disapproval of Credit or the occurrence of any of the above, LONG may, at its sole option, cancel Customer’s Purchase Order or contract without any liability on the part of LONG. Alternatively, LONG may extend the time for its performance by a period equal to the duration of the cause underlying LONG’s failure or delay. Receipt of the equipment or services by Customer upon its delivery shall constitute a waiver of all claims for delay. 5. TAXES – Prices quoted are exclusive of taxes unless specifically state differently in the scope of work proposal. The amount of any present or any future occupation, sales, use, service, excise of other similar tax which LONG shall be liable for either on its own behalf of on the behalf of the Customer, with respect to any orders for machinery or services, shall be in addition to the billing prices quoted and be paid by the Customer. 6. WARRANTY – On equipment, LONG will extend the manufacturer’s warranty to our customer (typically up to 1 year, starting the date sold to LONG). LONG warrants installation craftsmanship, parts and materials for 90 days and will repair or replace, at LONG’s option to fulfill the term of the initial warranty period. This warranty does not include loss of refrigerant, fuses, subcontracted services (example, crane), damages caused by customer misuse of abuse, acts of God, site electrical or other problems or after-hours warranty service labor. The warranty and liability set forth above are in lieu of all other warranties and liabilities, express or implied, in law or in act. The warranties contained herein set forth customer’s sole and exclusive remedy in the event of a defect in workmanship or materials. Quote Number: CRI22-01117 July 8, 2022 Page 5 of 5 Alaska Colorado Nevada Oregon Utah Washington Wyoming Delivering Confidence…Since 1965 7. LIMITATION OF LIABILITY – LONG will provide proof of liability insurance coverage per customer’s request. LONG shall not be liable for any special, incidental or consequential damages. All claims, causes of action or legal proceedings against LONG arising from LONG’s performance under this contract must be commenced by Customer within the express warranty period specified under Paragraph 6 hereof. Failure to commence any such claim, cause of action or legal proceeding within such period shall constitute a voluntary and knowing waiver thereof by Customer. 8. CANCELLATION – Should customer cancel the project, LONG reserves the right to collect cancellation charges (including, but not limited to, all costs and expenses incurred, plus reasonable overhead and profit against any cancelled order or contract). 9. DISPUTES AND CHOICE OF LAW – This contract shall be deemed to have entered into and shall be governed by the laws of the State of Colorado. All claims, disputes and controversies arising out of or relating to this contract, or the breach thereof, shall, in lieu of court action, be submitted to arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and any judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The site of the arbitration shall be Littleton, Colorado unless another site is mutually agreed between the parties. The parties agree that any party to the arbitration shall be entitled to discovery of the other party as provided by the Federal Rules of Civil Procedure; provided, however, that any such discovery shall be completed within four (4) months from the date the Demand for Arbitration is filed with the American Arbitration Association. 10. COSTS TO LONG – In the event it becomes necessary for LONG to incur any costs or expenses in the collection of monies due to LONG from Customer, or to enforce any of its rights and privileges hereunder, Customer, upon demand, shall reimburse LONG for all such costs and expense (including, but not limited to, reasonable attorney’s fees). 11. NON-SOLICIATION – Both parties agree that during the term of this agreement and for a period of one year after termination, not to discuss, solicit, hire or in any way cause any employee of the other to consider terminating their employment with one party in favor of starting their own company to provide services similar to those included in this agreement or for direct employment by the other party. Should this clause be violated it is agreed that the offended party will be significantly damaged. The offending party agrees to reimburse the offended party a minimum compensation equivalent to the last 3 years of wages, benefits and training paid and attributed to the solicited former employee. This clause can only be waived by the prior written agreement of executives of both parties to this agreement. 12. ENTIRE AGREEMENT - These terms and conditions, and the matter set forth on the face of LONG’s offer to sell, constitute the entire agreement between LONG and Customer. No course of dealings or performances, or prior, concurrent or subsequent understandings, agreements of representations become part of this contract unless expressly agreed to in writing by an authorized representative of LONG. 13. ASSIGNMENT – Customer shall not assign this contract or any interest therein without the prior written consent of LONG. Any actual or attempted assignment without LONG’s consent shall entitle LONG, at its sole option, to cancel this contract and, in such event, LONG shall be entitled to payment for all work performed and materials furnished to the date of cancellation, as well as reasonable compensation for lost overhead and profits.