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HomeMy WebLinkAbout12bi CB46 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Melissa Englund DEPARTMENT: City Manager's Office DATE: October 6, 2025 SUBJECT: CB 46 - Acceptance of $250,000 High Efficiency Electric Heating and Appliances (HEEHA) grant awarded by the Colorado Energy Office DESCRIPTION: CB 46-Staff seeks councils approval to accept a $250,000 HEEHA grant awarded by the Colorado Energy Office that will go towards the city's municipal energy project. RECOMMENDATION: Staff recommends council approve, by ordinance, the $250,000 High Efficiency Electric Heating and Appliances (HEEHA) grant awarded by the Colorado Energy Office that will go towards the city’s comprehensive municipal energy project. PREVIOUS COUNCIL ACTION:  July 12, 2021: Draft American Rescue Plan Act (ARPA) fund list reviewed by Council during study session.  February 7, 2022: City Council approves ARPA funding list, which contains $200,000 to go towards some type of sustainable, energy-efficient pilot project.  May 2, 2022: City Council approved CB 25 -- Ordinance approving a Memorandum of Understanding between the Colorado Energy Office and the City of Englewood to provide contract services for its Energy Contracting Program.  April 1, 2024: City Council approves staff to pursue the Public Building Electrification grant provided by the State's Energy Office.  October 21,2024: Council approves $11,300 Public Building Electrification grant planning phase funds.  February 18, 2025: Council approves staff to apply to the High Efficiency Electric Heating and Appliances Grant via the Colorado Energy Office SUMMARY: The City of Englewood has been awarded $250,000 via the State Energy Office to go towards the comprehensive municipal energy project, a project that will pay for itself in 12 years and then save the city nearly $2 million dollars in energy savings from year 13-19 post implementation. ANALYSIS: Acceptance of the $250,000 HEEHA grant is reflected in the overall municipal energy project. Inclusion of this grant is shown on the project funding table below: Page 644 of 1257 Total project funding: Project Funding Sources City Capital Contribution $ 2,500,000 City ARPA Allocation $ 200,000 State Electrification Grant $ 250,000 Net Financing Available* $ 3,660,432 Total Project Funding $ 6,610,432 *Total Financing $ 3,911,000 Less Estimated Financing Costs $ (251,179) Net Financing Available $ 3,660,432 Post Implementation Reimbursements Inflation Reduction Act $ 547,000 Utility Incentives $ 56,000 This grant will help cover costs for the municipal energy project, a project that will pay for itself in 12 years and then save the city nearly $2 million dollars in energy savings from year 13-19 post implementation. COUNCIL ACTION REQUESTED: Staff requests council approve, by Ordinance, the $250,000 High Efficiency Electric Heating and Appliances (HEEHA) grant awarded by the Colorado Energy Office. FINANCIAL IMPLICATIONS: The HEEHA grant requires a 15-50% match, with the city matching $1,909,000. This match, however, has already been accounted for in the overall financing of the municipal energy project. CONNECTION TO STRATEGIC PLAN: Securing funds from this grant will advance the following projects and metrics found in the Strategic Plan underneath the Sustainability priority area:  Project: “Work with the Colorado Energy Office to conduct an Energy Performance Audit on major city facilities.” ·  Metric: “% reduction in carbon emissions from city-owned buildings in Englewood.” ·  Metric: “% reduction in energy use” OUTREACH/COMMUNICATIONS: Page 645 of 1257 This grant was consulted by the city’s internal finance department and public works department, the State Energy Office, and the city’s contractor Energy Systems Group (ESG) (formerly dba Yearout Energy). ATTACHMENTS: CEO IntergovernmentalGrantAgreement Exhibit A - HEEHA-SOW CB Ordinance Page 646 of 1257 1 ORDINANCE COUNCIL BILL NO. 46 NO. __ INTRODUCED BY COUNCIL SERIES OF 2025 MEMBER NUNNENKAMP AN ORDINANCE AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF ENGLEWOOD, COLORADO AND THE STATE OF COLORADO FOR THE HIGH EFFICIENCY AND ELECTRIFICATION HEATING APPLIANCES (HEEHA) PROGRAM GRANT, APPROPRIATING FUNDS, AND APPROVING THE LOCAL MATCH COMMITMENT. WHEREAS, the State of Colorado, through the Colorado Energy Office (“CEO”), has awarded the City of Englewood (the “City”) a grant under the High Efficiency and Electrification Heating Appliances Program (“HEEHA Program”) to support installation of high-efficiency and electrification heating appliances in municipal facilities and eligible community locations; and WHEREAS, the total grant award is Two Hundred Fifty Thousand Dollars ($250,000) for State Fiscal Year 2026, with any unexpended funds eligible for expenditure in State Fiscal Year 2027; and WHEREAS, the HEEHA Program requires a local match contribution in the amount of One Million Nine Hundred Nine Thousand Dollars ($1,909,000), which has been budgeted and appropriated within the City’s Capital Projects Fund; and WHEREAS, the City is authorized under Article XIV, Section 18(2)(a) of the Colorado Constitution and C.R.S. §§ 29-1-203 et seq. to enter into intergovernmental agreements with other political subdivisions for the joint exercise of functions, services, or facilities; and WHEREAS, City Charter § 80 authorizes the City to receive grants, gifts, and donations on behalf of the City, and to take all necessary acts to carry out the purposes of such grants; and WHEREAS, the City Council desires to formally accept the grant award, appropriate the grant funds, and authorize the expenditure of the required local match to implement the HEEHA Program. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. The City Council of the City of Englewood, Colorado hereby approves the Intergovernmental Agreement between the City of Englewood for the High Efficiency and Electrification Heating Appliances (HEEHA) Grant, a copy of which is on file with the City Clerk, in the form substantially the same as that attached hereto. Section 2. General Provisions The following general provisions and findings are applicable to the interpretation and application of this Ordinance: Page 647 of 1257 2 A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict. C. Effect of repeal or modification. The repeal or modification of any provision of the Code of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which shall have been incurred under such provision, and each provision shall be treated and held as still remaining in force for the purposes of sustaining any and all proper actions, suits, proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as well as for the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suits, proceedings, or prosecutions. D. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. This Safety Clause is not intended to affect a Citizen right to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47. E. Publication. Publication of this Ordinance may be by reference or in full in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. Manuals, Municipal Code, contracts, and other documents approved by reference in any Council Bill may be published by reference or in full on the City’s official website; such documents shall be available at the City Clerk’s office and in the City Council meeting agenda packet when the legislation was adopted. F. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance, and has the authority to correct formatting and/or typographical errors. G. Enforcement. To the extent this ordinance establishes a required or prohibited action punishable by law, unless otherwise specifically provided in Englewood Municipal Code or applicable law, violations shall be subject to the General Penalty provisions contained within EMC § 1-4-1. Page 648 of 1257 3 Introduced and passed on first reading on the 2nd day of September, 2025; and on second reading, in identical form to the first reading, on the ___ day of ________, 2025. Othoniel Sierra, Mayor ATTEST: _________________________________ Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of an Ordinance, introduced and passed in identical form on first and second reading on the dates indicated above; and published two days after each passage on the City’s official website for at least thirty (30) days thereafter. The Ordinance shall become effective thirty (30) days after first publication on the City’s official website. Stephanie Carlile Page 649 of 1257 CTGG1 26- State of Colorado Intergovernmental Grant Agreement Cover Page State Agency Colorado Energy Office Grantee City of Englewood Grant Amount State Fiscal Year 2026 $250,000.00 State Fiscal Year 2027 Any unused funds from SFY26 State Fiscal Year 2028 $0.00 State Fiscal Year 2029 $0.00 State Fiscal Year 2030 $0.00 State Fiscal Year 2031 $0.00 Total for all State Fiscal Years $250,000.00 Local Match Amount $1,909,000.00 Grant Issuance Date The Effective Date Grant Expiration Date August 31, 2030 Agreement Authority – Authority to enter into this Agreement exists in CRS §24-38.5-101, et seq., and funds have been budgeted, appropriated and otherwise made available and a sufficient unencumbered balance thereof remains available for payment under HB-22-1362. Grant Purpose The Grantee was awarded funding as a result of the competitive High Efficiency and Electrification Heating Appliances (HEEHA) Implementation Only Grant Application. Exhibits and Order of Precedence The following Exhibits and attachments are included with this Agreement: 1. Exhibit A, Statement of Work. 2. Exhibit B, Budget and Payment Conditions. 3. Exhibit C, Grantee’s Application. Page 650 of 1257 Version: 11/2024 In the event of a conflict of inconsistency between this Agreement and any Exhibit or attachment, such conflict or inconsistency shall be resolved by reference to the documents in the following order of priority: 1. Colorado Special Provisions in §17 of the main body of this Agreement. 2. The provisions of the other sections of the main body of this Agreement. 3. Exhibit A, Statement of Work. 4. Exhibit B, Budget and Payment Conditions. 5. Exhibit C, Grantee’s Application. Principal Representatives For the State: Brittney VanCuran Colorado Energy Office 1600 Broadway Street Suite 1960 Denver, CO, 80202 Brittney.vancuran@state.co.us For Grantee: Mel Englund City of Englewood 1000 Englewood Parkway Englewood, CO 80110 menglund@englewoodco.gov Page 651 of 1257 Version: 11/2024 Signature Page The Parties hereto have executed this agreement Each person signing this Agreement represents and warrants that the signer is duly authorized to execute this Agreement and to bind the Party authorizing such signature. Grantee City of Englewood _______________________________ By: Date: ______________________ STATE OF COLORADO Jared S. Polis, Governor Colorado Energy Office _______________________________ By: Dominique Gomez, Deputy Director Date: _______________________ In accordance with §24-30-202, C.R.S., this Agreement is not valid until signed and dated below by the State Controller or an authorized delegate. STATE CONTROLLER Robert Jaros, CPA, MBA, JD By: Jonathon Bray, Controller, Office of the Governor Effective Date:______________ Page 652 of 1257 Page 1 of 20 Version: 11/2024 Table of Contents 1. Grant ........................................................................................................... 1 2. Term ............................................................................................................ 2 3. Definitions ..................................................................................................... 2 4. Statement of Work ........................................................................................... 5 5. Payments to Grantee ........................................................................................ 5 6. Reporting - Notification ..................................................................................... 7 7. Grantee Records .............................................................................................. 7 8. Confidential Information-State Records ................................................................... 8 9. Conflict of Interest ........................................................................................... 9 10. Insurance .................................................................................................... 10 11. Breach of Agreement ...................................................................................... 10 12. Remedies .................................................................................................... 10 13. Dispute Resolution ......................................................................................... 13 14. Notices and Representatives .............................................................................. 13 15. Rights in Work Product and Other Information ........................................................ 14 16. Governmental Immunity ................................................................................... 14 17. General Provisions .......................................................................................... 14 1. Grant As of the Grant Issuance Date, the State Agency shown on the first page of this Grant Award Letter (the “State”) hereby obligates and awards to Grantee shown on the first page of this Grant Award Letter (the “Grantee”) an award of Grant Funds in the amounts shown on the first page of this Grant Award Letter. By accepting the Grant Funds provided under this Grant Award Letter, Grantee agrees to comply with the terms and conditions of this Grant Award Letter and requirements and provisions of all Exhibits to this Grant Award Letter. Page 653 of 1257 Page 2 of 20 Version: 11/2024 2. Term A. Initial Grant Term and Extension The Parties’ respective performances under this Grant Award Letter shall commence on the Grant Issuance Date and shall terminate on the Grant Expiration Date unless sooner terminated or further extended in accordance with the terms of this Grant Award Letter. Upon request of Grantee, the State may, in its sole discretion, extend the term of this Grant Award Letter by providing Grantee with an updated Grant Award Letter showing the new Grant Expiration Date. B. Early Termination in the Public Interest The State is entering into this Grant Award Letter to serve the public interest of the State of Colorado as determined by its Governor, General Assembly, or Courts. If this Grant Award Letter ceases to further the public interest of the State or if State, Federal or other funds used for this Grant Award Letter are not appropriated, or otherwise become unavailable to fund this Grant Award Letter, the State, in its discretion, may terminate this Grant Award Letter in whole or in part by providing written notice to Grantee that includes, to the extent practicable, the public interest justification for the termination. If the State terminates this Grant Award Letter in the public interest, the State shall pay Grantee an amount equal to the percentage of the total reimbursement payable under this Grant Award Letter that corresponds to the percentage of Work satisfactorily completed, as determined by the State, less payments previously made. Additionally, the State, in its discretion, may reimburse Grantee for a portion of actual, out-of-pocket expenses not otherwise reimbursed under this Grant Award Letter that are incurred by Grantee and are directly attributable to the uncompleted portion of Grantee’s obligations, provided that the sum of any and all reimbursements shall not exceed the maximum amount payable to Grantee hereunder. This subsection shall not apply to a termination of this Grant Award Letter by the State for breach by Grantee. 3. Definitions The following terms shall be construed and interpreted as follows: A. “Agreement” means this agreement, including all attached Exhibits, all documents incorporated by reference, all referenced statutes, rules and cited authorities, and any future modifications thereto. Page 654 of 1257 Page 3 of 20 Version: 11/2024 B. “Breach of Agreement” means the failure of a Party to perform any of its obligations in accordance with this Agreement, in whole or in part or in a timely or satisfactory manner. The institution of proceedings under any bankruptcy, insolvency, reorganization or similar law, by or against Grantee, or the appointment of a receiver or similar officer for Grantee or any of its property, which is not vacated or fully stayed within 30 days after the institution of such proceeding, shall also constitute a breach. If Grantee is debarred or suspended under §24-109-105, C.R.S. at any time during the term of this Agreement, then such debarment or suspension shall constitute a breach. C. “Budget” means the budget for the Work described in Exhibit B. D. “Business Day” means any day in which the State is open and conducting business, but shall not include Saturday, Sunday or any day on which the State observes one of the holidays listed in §24-11-101(1) C.R.S. E. “CORA” means the Colorado Open Records Act, §§24-72-200.1 et seq., C.R.S. F. “Grant Award Letter” means this letter which offers Grant Funds to Grantee, including all attached Exhibits, all documents incorporated by reference, all referenced statutes, rules and cited authorities, and any future updates thereto. G. “Grant Funds” means the funds that have been appropriated, designated, encumbered, or otherwise made available for payment by the State under this Grant Award Letter. H. “Grant Expiration Date” means the Grant Expiration Date shown on the first page of this Grant Award Letter. I. “Grant Issuance Date” means the Grant Issuance Date shown on the first page of this Grant Award Letter. J. “Exhibits” exhibits and attachments included with this Grant as shown on the first page of this Grant K. “Extension Term” means the period of time by which the Grant Expiration Date is extended by the State through delivery of an updated Grant Award Letter L. “Goods” means any movable material acquired, produced, or delivered by Grantee as set forth in this Grant Award Letter and shall include any movable material acquired, produced, or delivered by Grantee in connection with the Services. M. “Incident” means any accidental or deliberate event that results in or constitutes an imminent threat of the unauthorized access or disclosure of State Confidential Page 655 of 1257 Page 4 of 20 Version: 11/2024 Information or of the unauthorized modification, disruption, or destruction of any State Records. N. “Initial Term” means the time period between the Grant Issuance Date and the Grant Expiration Date. O. “Party” means the State or Grantee, and “Parties” means both the State and Grantee. P. “PII” means personally identifiable information including, without limitation, any information maintained by the State about an individual that can be used to distinguish or trace an individual’s identity, such as name, social security number, date and place of birth, mother’s maiden name, or biometric records; and any other information that is linked or linkable to an individual, such as medical, educational, financial, and employment information. PII includes, but is not limited to, all information defined as personally identifiable information in §§24- 72-501 and 24-73-101 C.R.S. “PII” shall also mean “personal identifying information” as set forth at § 24-74-102, et. seq., C.R.S. Q. “Services” means the services to be performed by Grantee as set forth in this Grant Award Letter, and shall include any services to be rendered by Grantee in connection with the Goods. R. “State Confidential Information” means any and all State Records not subject to disclosure under CORA. State Confidential Information shall include, but is not limited to, PII, and State personnel records not subject to disclosure under CORA. State Confidential Information shall not include information or data concerning individuals that is not deemed confidential but nevertheless belongs to the State, which has been communicated, furnished, or disclosed by the State to Grantee which (i) is subject to disclosure pursuant to CORA; (ii) is already known to Grantee without restrictions at the time of its disclosure to Grantee; (iii) is or subsequently becomes publicly available without breach of any obligation owed by Grantee to the State; (iv) is disclosed to Grantee, without confidentiality obligations, by a third party who has the right to disclose such information; or (v) was independently developed without reliance on any State Confidential Information. S. “State Fiscal Rules” means the fiscal rules promulgated by the Colorado State Controller pursuant to §24-30-202(13)(a) C.R.S. Page 656 of 1257 Page 5 of 20 Version: 11/2024 T. “State Fiscal Year” means a 12 month period beginning on July 1 of each calendar year and ending on June 30 of the following calendar year. If a single calendar year follows the term, then it means the State Fiscal Year ending in that calendar year. U. “State Records” means any and all State data, information, and records, regardless of physical form, including, but not limited to, information subject to disclosure under CORA. V. “Subcontractor” means third-parties, if any, engaged by Grantee to aid in performance of the Work. “Subcontractor” also includes sub-grantees. W. “Work” means the delivery of the Goods and performance of the Services described in this Grant Award Letter. X. “Work Product” means the tangible and intangible results of the Work, whether finished or unfinished, including drafts. Work Product includes, but is not limited to, documents, text, software (including source code), research, reports, proposals, specifications, plans, notes, studies, data, images, photographs, negatives, pictures, drawings, designs, models, surveys, maps, materials, ideas, concepts, know-how, and any other results of the Work. “Work Product” does not include any material that was developed prior to the Grant Issuance Date that is used, without modification, in the performance of the Work. Any other term used in this Grant Award Letter that is defined in an Exhibit shall be construed and interpreted as defined in that Exhibit. 4. Statement of Work Grantee shall complete the Work as described in this Grant Award Letter and in accordance with the provisions of Exhibit A. The State shall have no liability to compensate or reimburse Grantee for the delivery of any goods or the performance of any services that are not specifically set forth in this Grant Award Letter. 5. Payments to Grantee A. Maximum Amount Payments to Grantee are limited to the unpaid, obligated balance of the Grant Funds. The State shall not pay Grantee any amount under this Grant that exceeds the Grant Amount for each State Fiscal Year shown on the first page of this Grant Award Letter. Financial obligations of the State payable after the current State Fiscal Year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available. The Page 657 of 1257 Page 6 of 20 Version: 11/2024 State shall not be liable to pay or reimburse Grantee for any Work performed or expense incurred before the Grant Issuance Date or after the Grant Expiration Date. B. Matching Funds Grantee shall provide the Local Match Amount shown on the first page of this Grant Award Letter and described in Exhibit A (the “Local Match Amount”). In providing the Local Match Amount, Grantee may utilize other grant funding. Grantee’s obligation to pay all or part of any matching funds, whether direct or contingent, only extends to funds duly and lawfully appropriated for the purpose of this Agreement by the authorized representatives of Grantee and paid into Grantee’s treasury or bank account. Grantee shall appropriate and allocate all Local Match Amounts, less any amount funded by other grant funding, to the purpose of this Grant Award Letter each fiscal year prior to accepting any Grant Funds for that fiscal year. Grantee does not by accepting this Grant Award Letter irrevocably pledge present cash reserves for payments in future fiscal years, and this Grant Award Letter is not intended to create a multiple-fiscal year debt of Grantee. Grantee shall not pay or be liable for any claimed interest, late charges, fees, taxes or penalties of any nature, except as required by Grantee’s laws or policies. C. Reimbursement of Grantee Costs Upon prior written approval, the State shall reimburse Grantee’s allowable costs, not exceeding the maximum total amount described in this Grant Award Letter for all allowable costs described in this Grant Award Letter and shown in the Budget, except that Grantee may adjust the amounts between each line item of the Budget without formal modification to this Agreement as long as the Grantee provides notice to the State of the change, the change does not modify the total maximum amount of this Grant Award Letter or the maximum amount for any state fiscal year, and the change does not modify any requirements of the Work. The State shall only reimburse allowable costs if those costs are: (i) reasonable and necessary to accomplish the Work and for the Goods and Services provided; and (ii) equal to the actual net cost to Grantee (i.e. the price paid minus any items of value received by Grantee that reduce the cost actually incurred). D. Close-Out. Grantee shall close out this Grant within 45 days after the Grant Expiration Date. To complete close out, Grantee shall submit to the State all deliverables (including documentation) as defined in this Grant Award Letter and Grantee’s final reimbursement Page 658 of 1257 Page 7 of 20 Version: 11/2024 request or invoice. The State will withhold 5% of allowable costs until all final documentation has been submitted and accepted by the State as substantially complete. 6. Reporting - Notification A. Performance and Final Status Grantee shall submit all financial, performance and other reports to the State no later than the end of the close out described in §5.D, containing an evaluation and review of Grantee’s performance and the final status of Grantee’s obligations hereunder. B. Violations Reporting Grantee shall disclose, in a timely manner, in writing to the State, all violations of federal or State criminal law involving fraud, bribery, or gratuity violations potentially affecting the Award. The State may impose any penalties for noncompliance allowed under 2 CFR Part 180 and 31 U.S.C. 3321, which may include, without limitation, suspension or debarment. 7. Grantee Records A. Maintenance and Inspection Grantee shall make, keep, and maintain, all records, documents, communications, notes and other written materials, electronic media files, and communications, pertaining in any manner to this Grant for a period of three years following the completion of the close out of this Grant. Grantee shall permit the State to audit, inspect, examine, excerpt, copy and transcribe all such records during normal business hours at Grantee’s office or place of business, unless the State determines that an audit or inspection is required without notice at a different time to protect the interests of the State. B. Monitoring The State will monitor Grantee’s performance of its obligations under this Grant Award Letter using procedures as determined by the State. The State shall have the right, in its sole discretion, to change its monitoring procedures and requirements at any time during the term of this Agreement. The State shall monitor Grantee’s performance in a manner that does not unduly interfere with Grantee’s performance of the Work. C. Final Audit Report Page 659 of 1257 Page 8 of 20 Version: 11/2024 Grantee shall promptly submit to the State a copy of any final audit report of an audit performed on Grantee’s records that relates to or affects this Grant or the Work, whether the audit is conducted by Grantee or a third party. 8. Confidential Information-State Records A. Confidentiality Grantee shall hold and maintain, and cause all Subcontractors to hold and maintain, any and all State Records that the State provides or makes available to Grantee for the sole and exclusive benefit of the State, unless those State Records are otherwise publicly available at the time of disclosure or are subject to disclosure by Grantee under CORA. Grantee shall not, without prior written approval of the State, use for Grantee’s own benefit, publish, copy, or otherwise disclose to any third party, or permit the use by any third party for its benefit or to the detriment of the State, any State Records, except as otherwise stated in this Grant Award Letter. Grantee shall provide for the security of all State Confidential Information in accordance with all policies promulgated by the Colorado Office of Information Security and all applicable laws, rules, policies, publications, and guidelines. Grantee shall immediately forward any request or demand for State Records to the State’s principal representative. B. Other Entity Access and Nondisclosure Agreements Grantee may provide State Records to its agents, employees, assigns and Subcontractors as necessary to perform the Work, but shall restrict access to State Confidential Information to those agents, employees, assigns and Subcontractors who require access to perform their obligations under this Grant Award Letter. Grantee shall ensure all such agents, employees, assigns, and Subcontractors sign nondisclosure agreements with provisions at least as protective as those in this Grant, and that the nondisclosure agreements are in force at all times the agent, employee, assign or Subcontractor has access to any State Confidential Information. Grantee shall provide copies of those signed nondisclosure restrictions to the State upon request. C. Use, Security, and Retention Grantee shall use, hold and maintain State Confidential Information in compliance with any and all applicable laws and regulations in facilities located within the United States, and shall maintain a secure environment that ensures confidentiality of all State Page 660 of 1257 Page 9 of 20 Version: 11/2024 Confidential Information wherever located. Grantee shall provide the State with access, subject to Grantee’s reasonable security requirements, for purposes of inspecting and monitoring access and use of State Confidential Information and evaluating security control effectiveness. Upon the expiration or termination of this Grant, Grantee shall return State Records provided to Grantee or destroy such State Records and certify to the State that it has done so, as directed by the State. If Grantee is prevented by law or regulation from returning or destroying State Confidential Information, Grantee warrants it will guarantee the confidentiality of, and cease to use, such State Confidential Information. D. Incident Notice and Remediation If Grantee becomes aware of any Incident, it shall notify the State immediately and cooperate with the State regarding recovery, remediation, and the necessity to involve law enforcement, as determined by the State. After an Incident, Grantee shall take steps to reduce the risk of incurring a similar type of Incident in the future as directed by the State, which may include, but is not limited to, developing and implementing a remediation plan that is approved by the State at no additional cost to the State. E. Safeguarding PII If Grantee or any of its Subcontractors will or may receive PII under this Agreement, Grantee shall provide for the security of such PII, in a manner and form acceptable to the State, including, without limitation, State non-disclosure requirements, use of appropriate technology, security practices, computer access security, data access security, data storage encryption, data transmission encryption, security inspections, and audits. Grantee shall be a “Third-Party Service Provider” as defined in §24-73-103(1)(i), C.R.S. and shall maintain security procedures and practices consistent with §§24-73-101 et seq., C.R.S. In addition, as set forth in § 24-74-102, et. seq., C.R.S., Grantee, including, but not limited to, Grantee’s employees, agents and Subcontractors, agrees not to share any PII with any third parties for the purpose of investigating for, participating in, cooperating with, or assisting with Federal immigration enforcement. 9. Conflict of Interest Grantee shall not engage in any business or activities, or maintain any relationships that conflict in any way with the full performance of the obligations of Grantee under this Grant. Grantee acknowledges that, with respect to this Grant, even the appearance of a Page 661 of 1257 Page 10 of 20 Version: 11/2024 conflict of interest shall be harmful to the State’s interests and absent the State’s prior written approval, Grantee shall refrain from any practices, activities or relationships that reasonably appear to be in conflict with the full performance of Grantee’s obligations under this Grant. If a conflict or the appearance of a conflict arises, or if Grantee is uncertain whether a conflict or the appearance of a conflict has arisen, Grantee shall submit to the State a disclosure statement setting forth the relevant details for the State’s consideration. Grantee acknowledges that all State employees are subject to the ethical principles described in §24-18-105, C.R.S. Grantee further acknowledges that State employees may be subject to the requirements of §24-18-105, C.R.S. with regard to this Grant. 10. Insurance Grantee shall maintain at all times during the term of this Grant such liability insurance, by commercial policy or self-insurance, as is necessary to meet its liabilities under the Colorado Governmental Immunity Act, §24-10-101, et seq., C.R.S. (the “GIA”). Grantee shall ensure that any Subcontractors maintain all insurance customary for the completion of the Work done by that Subcontractor and as required by the State or the GIA. 11. Breach of Agreement In the event of a breach of agreement, the aggrieved party shall give written notice of breach of agreement to the other party. If the notified party does not cure the breach, at its sole expense, within 30 days after the delivery of written notice, the party may exercise any of the remedies as described in §12 for that party. Notwithstanding any provision of this Agreement to the contrary, the State, in its discretion, need not provide notice or a cure period and may immediately terminate this Agreement in whole or in part or institute any other remedy in this Agreement in order to protect the public interest of the State; or if Grantee is debarred or suspended under §24-109-105, C.R.S., the State, in its discretion, need not provide notice or cure period and may terminate this Agreement in whole or in part or institute any other remedy in this Agreement as of the date that the debarment or suspension takes effect. 12. Remedies A. State’s Remedies Page 662 of 1257 Page 11 of 20 Version: 11/2024 In addition to any remedies available under any exhibit to this grant agreement, if Grantee is in breach under any provision of this agreement and fails to cure such breach, the state, following the notice and cure period set forth in §11, shall have all of the remedies listed in this section in addition to all other remedies set forth in this agreement or at law. The state may exercise any or all of the remedies available to it, in its discretion, concurrently or consecutively. I. Termination for Breach In the event of Grantee’s uncured breach, the State may terminate this entire Agreement or any part of this Agreement. Grantee shall continue performance of this Agreement to the extent not terminated, if any. The State may also terminate this grant agreement at any time if the State has determined, in its sole discretion, that Grantee has ceased performing the Work without intent to resume performance, prior to the completion of the Work. a. Obligation and Rights To the extent specified in any termination notice, Grantee shall not incur further obligations or render further performance past the effective date of such notice, and shall terminate outstanding orders and subcontracts with third parties. However, Grantee shall complete and deliver to the State all Work not cancelled by the termination notice, and may incur obligations as necessary to do so within this Agreement’s terms. At the request of the State, Grantee shall assign to the State all of Grantee’s rights, title, and interest in and to such terminated orders or subcontracts. Upon termination, Grantee shall take timely, reasonable and necessary action to protect and preserve property in the possession of Grantee but in which the State has an interest. At the State’s request, Grantee shall return materials owned by the State in Grantee’s possession at the time of any termination. Grantee shall deliver all completed Work Product and all Work Product that was in the process of completion to the State at the State’s request. b. Payments Notwithstanding anything to the contrary, the State shall only pay Grantee for accepted Work received as of the date of termination. If, after Page 663 of 1257 Page 12 of 20 Version: 11/2024 termination by the State, the State agrees that Grantee was not in breach or that Grantee’s action or inaction was excusable, such termination shall be treated as a termination in the public interest, and the rights and obligations of the Parties shall be as if this Agreement had been terminated in the public interest under §2.B. c. Damages and Withholding Notwithstanding any other remedial action by the State, Grantee shall remain liable to the State for any damages sustained by the State in connection with any breach by Grantee, and the State may withhold payment to Grantee for the purpose of mitigating the State’s damages until such time as the exact amount of damages due to the State from Grantee is determined. The State may withhold any amount that may be due Grantee as the State deems necessary to protect the State against loss including, without limitation, loss as a result of outstanding liens and excess costs incurred by the State in procuring from third parties replacement Work as cover. II. Remedies Not Involving Termination The State, in its discretion, may exercise one or more of the following additional remedies: a. Suspend Performance Suspend Grantee’s performance with respect to all or any portion of the Work pending corrective action as specified by the State without entitling Grantee to an adjustment in price or cost or an adjustment in the performance schedule. Grantee shall promptly cease performing Work and incurring costs in accordance with the State’s directive, and the State shall not be liable for costs incurred by Grantee after the suspension of performance. b. Withhold Payment Withhold payment to Grantee until Grantee corrects its Work. c. Deny Payment Deny payment for Work not performed, or that due to Grantee’s actions or inactions, cannot be performed or if they were performed are reasonably of Page 664 of 1257 Page 13 of 20 Version: 11/2024 no value to the State; provided, that any denial of payment shall be equal to the value of the obligations not performed. d. Removal Demand immediate removal of any of Grantee’s employees, agents, or subcontractors from the work whom the State deems incompetent, careless, insubordinate, unsuitable, or otherwise unacceptable or whose continued relation to this agreement is deemed by the State to be contrary to the public interest or the State’s best interest. e. Intellectual Property If any work infringes, or if the State in its sole discretion determines that any work is likely to infringe, a patent, copyright, trademark, trade secret or other intellectual property right, Grantee shall, as approved by the State (i) secure that right to use such work for the State and Grantee; (ii) replace the work with non-infringing work or modify the work so that it becomes non- infringing; or, (iii) remove any infringing work and refund the amount paid for such work to the State. B. Grantee’s Remedies If the State is in breach of any provision of this Agreement and does not cure such breach, Grantee, following the notice and cure period in §11 and the dispute resolution process in §13 shall have all remedies available at law and equity. 13. Dispute Resolution Except as herein specifically provided otherwise, disputes concerning the performance of this Grant that cannot be resolved by the designated Party representatives shall be referred in writing to a senior departmental management staff member designated by the State and a senior manager or official designated by Grantee for resolution. 14. Notices and Representatives Each Party shall identify an individual to be the principal representative of the designating Party and shall provide this information to the other Party. All notices required or permitted to be given under this Grant Award Letter shall be in writing, and shall be delivered either in hard copy or by email to the representative of the other Party. Either Party may change its principal Page 665 of 1257 Page 14 of 20 Version: 11/2024 representative or principal representative contact information by notice submitted in accordance with this §13. 15. Rights in Work Product and Other Information Grantee hereby grants to the State a perpetual, irrevocable, non-exclusive, royalty free license, with the right to sublicense, to make, use, reproduce, distribute, perform, display, create derivatives of and otherwise exploit all intellectual property created by Grantee or any Subcontractors or Subgrantees and paid for with Grant Funds provided by the State pursuant to this Grant. 16. Governmental Immunity Liability for claims for injuries to persons or property arising from the negligence of the Parties, their departments, boards, commissions committees, bureaus, offices, employees and officials shall be controlled and limited by the provisions of the Colorado Governmental Immunity Act, §24-10-101, et seq., C.R.S.; the Federal Tort Claims Act, 28 U.S.C. Pt. VI, Ch. 171 and 28 U.S.C. 1346(b), and the State’s risk management statutes, §§24-30-1501, et seq. C.R.S. No term or condition of this Agreement shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, contained in these statutes. 17. General Provisions A. Assignment Grantee’s rights and obligations under this Grant are personal and may not be transferred or assigned without the prior, written consent of the State. Any attempt at assignment or transfer without such consent shall be void. Any assignment or transfer of Grantee’s rights and obligations approved by the State shall be subject to the provisions of this Grant Award Letter. B. Captions and References The captions and headings in this Grant Award Letter are for convenience of reference only, and shall not be used to interpret, define, or limit its provisions. All references in this Grant Award Letter to sections (whether spelled out or using the § symbol), subsections, exhibits or other attachments, are references to sections, subsections, exhibits or other attachments contained herein or incorporated as a part hereof, unless otherwise noted. Page 666 of 1257 Page 15 of 20 Version: 11/2024 C. Entire Understanding This Grant Award Letter represents the complete integration of all understandings between the Parties related to the Work, and all prior representations and understandings related to the Work, oral or written, are merged into this Grant Award Letter. D. Modification The State may modify the terms and conditions of this Grant by issuance of an updated Grant Award Letter, which shall be effective if Grantee accepts Grant Funds following receipt of the updated letter. The Parties may also agree to modification of the terms and conditions of the Grant in a formal amendment to this Grant, properly executed and approved in accordance with applicable Colorado State law and State Fiscal Rules. E. Statutes, Regulations, Fiscal Rules, and Other Authority. Any reference in this Grant Award Letter to a statute, regulation, State Fiscal Rule, fiscal policy or other authority shall be interpreted to refer to such authority then current, as may have been changed or amended since the Grant Issuance Date. Grantee shall strictly comply with all applicable Federal and State laws, rules, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices. F. Digital Signatures If any signatory signs this agreement using a digital signature in accordance with the Colorado State Controller Contract, Grant and Purchase Order Policies regarding the use of digital signatures issued under the State Fiscal Rules, then any agreement or consent to use digital signatures within the electronic system through which that signatory signed shall be incorporated into this Agreement by reference. G. Severability The invalidity or unenforceability of any provision of this Grant Award Letter shall not affect the validity or enforceability of any other provision of this Grant Award Letter, which shall remain in full force and effect, provided that the Parties can continue to perform their obligations under the Grant in accordance with the intent of the Grant. H. Survival of Certain Grant Award Letter Terms Page 667 of 1257 Page 16 of 20 Version: 11/2024 Any provision of this Grant Award Letter that imposes an obligation on a Party after termination or expiration of the Grant shall survive the termination or expiration of the Grant and shall be enforceable by the other Party. I. Third Party Beneficiaries Except for the Parties’ respective successors and assigns described above, this Grant Award Letter does not and is not intended to confer any rights or remedies upon any person or entity other than the Parties. Any services or benefits which third parties receive as a result of this Grant are incidental to the Grant, and do not create any rights for such third parties. J. Waiver A Party’s failure or delay in exercising any right, power, or privilege under this Grant Award Letter, whether explicit or by lack of enforcement, shall not operate as a waiver, nor shall any single or partial exercise of any right, power, or privilege preclude any other or further exercise of such right, power, or privilege. K. Accessibility i. Grantee shall comply with and the Work Product provided under this Contract shall be in compliance with all applicable provisions of §§24-85-101, et seq., C.R.S., and the Accessibility Standards for Individuals with a Disability, as established by OIT pursuant to Section §24-85-103 (2.5), C.R.S. Grantee shall also comply with all State of Colorado technology standards related to technology accessibility and with Level AA of the most current version of the Web Content Accessibility Guidelines (WCAG), incorporated in the State of Colorado technology standards. ii. The State may require Grantee’s compliance to the State’s Accessibility Standards to be determined by a third party selected by the State to attest to Grantee’s Work Product and software is in compliance with §§24-85-101, et seq., C.R.S., and the Accessibility Standards for Individuals with a Disability as established by OIT pursuant to Section §24-85-103 (2.5), C.R.S. 18. Colorado Special Provisions (Colorado Fiscal Rule 3-3) A. Statutory Approval. §24-30-202(1) C.R.S. This Agreement shall not be valid until it has been approved by the Colorado State Controller or designee. If this Agreement is for a Major Information Technology Project, Page 668 of 1257 Page 17 of 20 Version: 11/2024 as defined in §24-37.5-102(2.6), then this Agreement shall not be valid until it has been approved by the State’s Chief Information Officer or designee. B. Fund Availability. §24-30-202(5.5) C.R.S. Financial obligations of the State payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available. C. Governmental Immunity. Liability for claims for injuries to persons or property arising from the negligence of the Parties, its departments, boards, commissions committees, bureaus, offices, employees and officials shall be controlled and limited by the provisions of the Colorado Governmental Immunity Act, §24-10-101, et seq., C.R.S.; the Federal Tort Claims Act, 28 U.S.C. Pt. VI, Ch. 171 and 28 U.S.C. 1346(b), and the Parties risk management statutes, §§24-30-1501, et seq. C.R.S. No term or condition of this Agreement shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, contained in these statutes. D. Independent Contractor. Grantee shall perform its duties hereunder as an independent contractor and not as an employee. Neither Grantee nor any agent or employee of Grantee shall be deemed to be an agent or employee of the State. Grantee shall not have authorization, express or implied, to bind the State to any agreement, liability, or understanding, except as expressly set forth herein. Grantee and its employees and agents are not entitled to unemployment insurance or workers compensation benefits through the State and the State shall not pay for or otherwise provide such coverage for Grantee or any of its agents or employees. Grantee shall pay when due all applicable employment taxes and income taxes and local head taxes incurred pursuant to this Contract. Grantee shall (a) provide and keep in force workers' compensation and unemployment compensation insurance in the amounts required by law, (b) provide proof thereof when requested by the State, and (c) be solely responsible for its acts and those of its employees and agents. E. Compliance with Law. Grantee shall comply with all applicable federal and State laws, rules, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices. Page 669 of 1257 Page 18 of 20 Version: 11/2024 F. Choice of Law, Jurisdiction, and Venue. Colorado law, and rules and regulations issued pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this Agreement. Any provision included or incorporated herein by reference which conflicts with said laws, rules, and regulations shall be null and void. All suits or actions related to this Agreement shall be filed and proceedings held in the State of Colorado and exclusive venue shall be in the City and County of Denver. G. Prohibited Terms. Any term included in this Agreement that requires the State to indemnify or hold Grantee harmless; requires the State to agree to binding arbitration; limits Grantee’s liability for damages resulting from death, bodily injury, or damage to tangible property; or that conflicts with this provision in any way shall be void ab initio. Nothing in this Contract shall be construed as a waiver of any provision of §24-106-109 C.R.S. H. Software Piracy Prohibition. State or other public funds payable under this Agreement shall not be used for the acquisition, operation, or maintenance of computer software in violation of federal copyright laws or applicable licensing restrictions. Grantee hereby certifies and warrants that, during the term of this Agreement and any extensions, Grantee has and shall maintain in place appropriate systems and controls to prevent such improper use of public funds. If the State determines that Grantee is in violation of this provision, the State may exercise any remedy available at law or in equity or under this Agreement, including, without limitation, immediate termination of this Agreement and any remedy consistent with federal copyright laws or applicable licensing restrictions. I. Employee financial Interest/Conflict of Interest. §§24-18-201 and 24-50-507 C.R.S. The signatories aver that to their knowledge, no employee of the State has any personal or beneficial interest whatsoever in the service or property described in this Agreement. Grantee has no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance of Grantee’s services and Grantee shall not employ any person having such known interests. Page 670 of 1257 Exhibit A Page 1 of 7 Version: 11/2024 Exhibit A, Statement of Work 1. High Efficiency Electric Heating and Appliances Grant Program The HEEHA Grant Program was created by HB 22-1362 to promote neighborhood-scale electrification projects in the State of Colorado (State). Fossil gas-powered appliances and equipment produce greenhouse gasses (GHG) and harmful indoor air pollution which can cause health problems. As a result, buildings rank in the top five biggest sources of GHG pollution in the State. Projects that support electrification and energy efficiency upgrades in Disproportionately Impacted, Low-Income, and/or Just Transition (DI / LI / JT) communities are highly encouraged. 30% of total grant funding is reserved for projects in DI / LI / JT communities. The resulting High Efficiency Electric Heating & Appliances (HEEHA) program is a competitive, reimbursement-based grant program administered by CEO. The total funding amount distributed by HEEHA is not to exceed $10 million over the program’s duration. Funding allocations will go exclusively toward the purchase and installation of high-efficiency electric equipment for space heating, water heating, or cooking in 5 or more residential units or 3 or more commercial buildings. In the case of applicants located in DI/ LI/ JT communities, administrative costs associated with the purchase and installation of electrification equipment are eligible for additional cost coverage. 2. Project Description The Grantee was awarded grant funding as a result of the High Efficiency Electric Heating and Appliances (HEEHA) Request for Applications (RFA). The Colorado Energy Office (hereinafter called “CEO” or the “State”) agrees to provide funding to the City of Englewood (hereinafter called “Grantee”), towards the costs associated and eligible with the HEEHA program. HEEHA is a program administered by the Colorado Energy Office (CEO) to encourage use of electric equipment and appliances in buildings, because they reduce greenhouse gas emissions, promote energy security through reliance on domestic electricity, and drive an innovative market for new technology applications. The general purpose of this project is to encourage the installation of electric building equipment in residential and commercial buildings throughout the state of Colorado. Grantee is requesting funding for the procurement and installation of electric equipment at the City of Englewood’s Malley Senior Center (3380 S Lincoln St Englewood, CO), the Jefferson Fire Station (555 W Jefferson Ave Englewood, CO), the Acoma Fire Station (4830 Acoma Street Englewood, CO), and the Recreation Center (1155 W Oxford Ave Englewood, CO). Any dates or deadlines with the exception of the Effective Date and Grant Expiration Date of this Grant Award Letter may be adjusted by mutual written agreement of the Grantee and CEO. Exclusively for the purposes of modifying deadlines in this Statement of Work, e-mail shall suffice as Page 671 of 1257 Exhibit A Page 2 of 7 Version: 11/2024 written documentation. If applicable, an extension of the Grant Expiration Date of the Grant Award shall require a formal modification to the Grant Award Letter. The Grantee shall hire and retain contractors and other professional services as needed to purchase and install necessary equipment and supporting structures. Total award not to exceed $250,000.00 3. Grantee Tasks, Deliverables & Timeline Grantee is subject to the following tasks, deliverables and timelines. 3.1. Grant Administration 3.1.1. Kick-off Meeting Kick-off meeting will be held within 45 days of Grant Agreement execution and will establish expectations of Grantee for implementing this Agreement. The meeting shall include, but not be limited to, a review of the project implementation timeline, contingency plans should the original timeline be extended, Grantee’s strategy to implement the proposed project and associated deliverables, and a review of this Agreement to ensure a clear understanding of expectations. Deliverables: PowerPoint slides or presentation containing the project timeline and contingency plans. Other meeting materials developed as appropriate. Timeline: Meeting will be held within 45 days of grant agreement execution and materials developed and presented in the kick-off meeting to be delivered to the grant program manager within 2 business days following the meeting. 3.1.2. Reporting & Progress Meetings CEO & Grantee shall conduct check-in calls on a quarterly schedule (State fiscal year). The Grantee shall be responsible for ensuring that all relevant staff attend calls. Meeting agenda will include updates on relevant project tasks, challenges and barriers the Grantee is encountering, and any decisions or guidance needed from CEO. Additionally, these meetings may include identifying any needed modifications to the tasks, implementation timeline, or budgets. ● Monthly Progress Reports Grantee will be subject to monthly performance reporting. Reports shall include: ○ Financial/Expenditure – tracking of grant related expenses for the quarter (paid and unpaid) and expenditures to date by match funding source. Expenses must match the budget line items outlined in Exhibit B. Expenditures of funds must reconcile with CEO’s files and may also include unpaid invoices. Page 672 of 1257 Exhibit A Page 3 of 7 Version: 11/2024 ○ Programmatic – narrative report; including progress made toward project goals and objectives, obstacles encountered to date and possible solutions, photos indicative of construction progress for the quarter, planned activities for the next month. Deliverables: Monthly progress report with financial/expenditure tracking and programmatic narrative update. Timeline: Monthly reports will be submitted to the grant program manager by the 15th of each month. ● Annual Performance Reporting Grantee shall submit a report to the Colorado Energy Office the first five years after receiving the grant award. This report shall include description of the project and measures funded using grant funds and operational data of electric equipment on gas and electricity use, cost, and emissions. Reporting template will be provided by the Colorado Energy Office. Deliverables: Annual report with financial/expenditure tracking, programmatic narrative update, and impact reporting on energy use. Timeline: Annual report will be due each year in December. ● Final Report ○ The Grantee shall complete reimbursable work within 12 months of the Grant Agreement Effective Date and submit a final report. This report will demonstrate the completion of the project and installation of the electric equipment. To be acceptable, the final report must explain the Grantee’s procurement and installation process, and it must identify the location of the equipment accompanied with a picture of the installed unit. The Grantee shall provide an invoice to CEO for the purchase of the unit and associated equipment, permitting costs, and the labor costs associated with the installation. To be acceptable, the invoice must be supported by receipts or invoices for all equipment, permits, and labor. The invoice must include an itemized list of all project costs being considered under the grant, including a breakdown of those covered under HEEHA and by any match funding. Deliverables: Final report providing a summary of key accomplishments from the past year, including project completion and final reporting requirements. Page 673 of 1257 Exhibit A Page 4 of 7 Version: 11/2024 Timeline: Due at final reimbursement request within 12 months of Grant Effective Date. Budget: $0.00 3.1.3. Payment Requests/Reimbursements ● Grantee shall submit a finance/expenditure report including receipts/invoices detailing eligible project expenditures and pictures of operational equipment, along with the monthly progress report detailing installation and operation of electric equipment per unit complete. The electric equipment will be acceptable to the CEO if they are installed, operational, and available for use. The Grantee’s invoice to CEO will be acceptable if it is properly supported by invoices or receipts and the costs are associated with procurement of electric equipment, construction materials, permitting, construction labor costs, and installation costs. ● The reimbursement report will be acceptable to CEO if it explains the Grantee’s procurement and installation process, and it identifies the location of the electric equipment accompanied with a picture of the installed units. If the units, invoice, and report are acceptable, the CEO Program Manager will submit the invoice to the accounting department for payment. ○ If the units, invoice, and report are unacceptable, the CEO Program Manager will work with the Grantee to correct, modify, or replace as needed. Deliverable/s: The following documentation is required for CEO to reimburse eligible costs on the project: ● Reimbursement Report ● Summary Invoice/Reimbursement Request ● Legible copies of all sales invoices showing the purchase price and amount paid by the applicant for the equipment, number of units purchased and serial numbers from the units. ● Legible copies of all invoices/receipts showing installation costs and number of labor hours spent by the installers and any subcontractors on the project. ● Date(s) of installation, installation completion and when the unit(s) are operational and available for use. ● Digital photograph(s) of the completed unit(s). ● Photographs must demonstrate adherence to the design standards. Additional photographs may be requested prior to reimbursement being finalized if this is not clearly demonstrated. ● All deliverables shall be adjusted to the final approval and discretion of the CEO. Page 674 of 1257 Exhibit A Page 5 of 7 Version: 11/2024 3.2. Electrification Training 3.2.1. The Grantee shall attend Colorado Energy Office’s Electrification Training Course to qualify for program match requirement reduction of 5%. Training shall be completed prior to Final Report submission. ● $12,500.00 will be withheld from the total budget allocated for electrification equipment until the deliverables are provided by the Grantee. Deliverables: Evidence of attending, either in person or virtually, the electrification training for building electrification grant recipients hosted by the Colorado Energy Office 3.3. Equipment Installation & Commissioning 3.3.1. Equipment Installation The following activities will be performed and equipment will be purchased, installed, and operational: ○ Acoma Fire Station ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (2) ● Packaged Heat Pump Units -15 Tons (1) ● Associated equipment and labor costs required for equipment installation ○ Jefferson Fire Station ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (1) ● Packaged Heat Pump Units - 3 Tons (2); 1.5 Tons (1); 2 Tons (1); 5 Tons (1) ● Associated equipment and labor costs required for equipment installation ○ Malley Senior Center ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (10) ● Packaged Heat Pump Units - 10 Tons (2) ● Associated equipment and labor costs required for equipment installation ○ Recreation Center ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (2); 20 Tons (1) ● Associated equipment and labor costs required for equipment installation Deliverables: Installation of approved appliances with supporting documentation including paid invoices and photos Page 675 of 1257 Exhibit A Page 6 of 7 Version: 11/2024 Budget: $250,000.00 3.3.2. Commissioning & Operational Verification Grantee shall undertake a process to ensure all systems & equipment are designed, installed, tested, operated, and maintained according to the operational requirements to ensure proper installation and operation. Grantee shall also clearly demonstrate installed equipment is primarily used over fossil fuel driven redundancy boiler(s). Deliverable/s: Supporting documentation including a commissioning logbook, IPMVP Option B compliant M&V plan and report and any supporting data and primary information to be provided within 1 year of project completion date. 3.3.3. Final Project Design Grantee is tasked with finalizing the detailed design of this project and providing CEO with a copy of such design. Deliverable/s: Copy of final project design development and construction documents upon completion. 3.4. Local Match Amount Grantee shall submit to the Colorado Energy Office details on any federal and local grants or tax benefits received for the property that constitute grant match requirements. The Grantee shall provide a total match of $1,909,000.00. ● $1,709,000.00 from City of Englewood Capital Contribution ● $200,000.00 in American Rescue Plan Act Funds Deliverable/s: Evidence of federal or local grant funding, tax credit/benefits or local rebates or received for this project. Evidence of general reserve funds and budgeted capital expenditure allocated for the project. 3.5. Acceptance Criteria Deliverables will be accepted upon timely submission and review by the CEO grant manager to ensure they meet all criteria in the above tasks and are included in the monthly reports from the Grantee. CEO shall notify the Grantee in writing within ten (10) calendar days of receiving a deliverable whether it accepts or rejects that deliverable. If no notification is delivered to the Grantee within this period, the deliverable shall be considered accepted. Any deliverable rejection notice shall specify in reasonable detail the way the deliverable does not materially conform to the specifications set forth in this Exhibit A. Grantee shall then implement such changes as reasonably required to bring the deliverable into material conformity with this Exhibit A. If, at the time the Grant is closed-out or terminated, it is determined that the Work is unfinished, incomplete, or unsatisfactory, or if Grantee fails to complete its obligations under this Statement of Work, in the State’s sole discretion, the State shall have the Page 676 of 1257 Exhibit A Page 7 of 7 Version: 11/2024 right to recover from Grantee up to 100% of the Grant Funds that have been expended. Page 677 of 1257 Exhibit B, Budget and Payment Conditions 1. Eligible Costs The following items are eligible for reimbursement: ● Energy audit(s) of ASHRAE Level II or equivalent to help an applicant determine electrification equipment type and sizing for the project. ● The purchase and installation of high efficiency electric equipment for space heating, water heating, or cooking. ● Utility and electric infrastructure upgrades that are necessary to install high efficiency electric equipment. This includes wiring, transformers, breaker boxes, electrical panels, and circuits. ● The purchase and installation of other innovative high efficiency building technologies that the CEO decides will likely be the same or better efficiency as high efficiency heat pumps. ● DI / LI / JT Communities Only: Community organizing time associated with the planning of the neighborhood-scale electrification project. Up to 30 hours of community organizing to recruit homeowners, organizing energy audits, and other tasks associated with the planning grant may be reimbursed through the grant. ● DI / LI / JT Communities Only: Administrative costs associated with the implementation of the neighborhood-scale electrification project may be reimbursed through the grant funding. Administrative costs may include but are not limited to reimbursement for staff time for managing or coordinating the implementation and installation of the equipment, working with contractors to complete projects, or other implementation-focused activities. 2. Project Budget Table 1. HEEHA Budget Form Summary Planning Phase Budget Request Measure Total Cost CEO Grant Coverage Percentage Energy Audits/ Analysis Costs: $0 0% Page 678 of 1257 Community Organizing Costs: $0 0% Total Request $0 0% Implementation Phase Budget Request Measure Total Cost CEO Grant Coverage Percentage Electrification Equipment Costs: $2,659,000.00 9.4% Electric Service/Panel Upgrade Costs: $0.00 100% Administrative Costs: $0 100% Total Request before Training: $237,500.00 Total Request Cover by Grant after Training: $250,000.00 Total Project Costs Covered before Training (Planning & Implementation) $237,500.00 Total Project Costs Covered by Grant after Training (Planning & Implementation) $250,000.00 *Grantees who elect to participate in CEO’s electrification training course receive a 5% increase on electrification equipment costs covered by CEO not to go over the maximum award amount. Page 679 of 1257 Exhibit A - Statement of Work 1. High Efficiency Electric Heating and Appliances Grant Program The HEEHA Grant Program was created by HB 22-1362 to promote neighborhood-scale electrification projects in the State of Colorado (State). Fossil gas-powered appliances and equipment produce greenhouse gasses (GHG) and harmful indoor air pollution which can cause health problems. As a result, buildings rank in the top five biggest sources of GHG pollution in the State. Projects that support electrification and energy efficiency upgrades in Disproportionately Impacted, Low-Income, and/or Just Transition (DI / LI / JT) communities are highly encouraged. 30% of total grant funding is reserved for projects in DI / LI / JT communities. The resulting High Efficiency Electric Heating & Appliances (HEEHA) program is a competitive, reimbursement-based grant program administered by CEO.The total funding amount distributed by HEEHA is not to exceed $10 million over the program’s duration. Funding allocations will go exclusively toward the purchase and installation of high-efficiency electric equipment for space heating, water heating, or cooking in 5 or more residential units or 3 or more commercial buildings. In the case of applicants located in DI/ LI/ JT communities, administrative costs associated with the purchase and installation of electrification equipment are eligible for additional cost coverage. 2. Project Description The Grantee was awarded grant funding as a result of the High Efficiency Electric Heating and Appliances (HEEHA) Request for Applications (RFA). The Colorado Energy Office (hereinafter called “CEO” or the “State”) agrees to provide funding to the City of Englewood (hereinafter called “Grantee”), towards the costs associated and eligible with the HEEHA program. HEEHA is a program administered by the Colorado Energy Office (CEO) to encourage use of electric equipment and appliances in buildings, because they reduce greenhouse gas emissions, promote energy security through reliance on domestic electricity, and drive an innovative market for new technology applications. The general purpose of this project is to encourage the installation of electric building equipment in residential and commercial buildings throughout the state of Colorado. Grantee is requesting funding for the procurement and installation of electric equipment at the The City of Englewood’s Malley Senior Center (3380 S Lincoln St Englewood, CO), the Jefferson Fire Station (555 W Jefferson Ave Englewood, CO), the Acoma Fire Station Page 680 of 1257 (4830 Acoma Street Englewood, CO), and the Recreation Center (1155 W Oxford Ave Englewood, CO). Any dates or deadlines with the exception of the Effective Date and Grant Expiration Date of this Grant Award Letter may be adjusted by mutual written agreement of the Grantee and CEO. Exclusively for the purposes of modifying deadlines in this Statement of Work, e-mail shall suffice as written documentation. If applicable, an extension of the Grant Expiration Date of the Grant Award shall require a formal modification to the Grant Award Letter. The Grantee shall hire and retain contractors and other professional services as needed to purchase and install necessary equipment and supporting structures. Total award not to exceed $250,000.00 3. Grantee Tasks, Deliverables & Timeline Grantee is subject to the following tasks, deliverables and timelines. 3.1. Grant Administration 3.1.1. Kick-off Meeting Kick-off meeting will be held within 45 days of Grant Agreement execution and will establish expectations of grantee for implementing this agreement. The meeting shall include, but not be limited to, a review of the project implementation timeline, contingency plans should the original timeline be extended, Grantee’s strategy to implement the proposed project and associated deliverables, and a review of this agreement to ensure a clear understanding of expectations. Deliverables: PowerPoint slides or presentation containing the project timeline and contingency plans. Other meeting materials developed as appropriate. Timeline: Meeting will be held within 45 days of grant agreement execution and materials developed and presented in the kick-off meeting to be delivered to the grant program manager within 2 business days following the meeting. 3.1.2. Reporting & Progress Meetings CEO & Grantee shall conduct check-in calls on a quarterly schedule (State fiscal year). The Grantee shall be responsible for ensuring that all relevant staff attend calls. Meeting agenda will include updates on relevant project tasks, challenges and barriers the Grantee is encountering, and any decisions or guidance needed from CEO. Page 681 of 1257 Additionally, these meetings may include identifying any needed modifications to the tasks, implementation timeline, or budgets. ● Monthly Progress Reports Grantee will be subject to monthly performance reporting. Reports shall include: ○ Financial/Expenditure – tracking of grant related expenses for the quarter (paid and unpaid) and expenditures to date by match funding source. Expenses must match the budget line items outlined in Exhibit B. Expenditures of funds must reconcile with CEO’s files and may also include unpaid invoices. ○ Programmatic – narrative report; including progress made toward project goals and objectives, obstacles encountered to date and possible solutions, photos indicative of construction progress for the quarter, planned activities for the next month. Deliverables: Monthly progress report with financial/expenditure tracking and programmatic narrative update. Timeline: Monthly reports will be submitted to the grant program manager by the 15th of each month. ● Annual Performance Reporting Grantee shall submit a report to the Colorado Energy Office the first five years after receiving the grant award. This report shall include description of the project and measures funded using grant funds and operational data of electric equipment on gas and electricity use, cost, and emissions. Reporting template will be provided by the Colorado Energy Office. Deliverables: Annual report with financial/expenditure tracking, programmatic narrative update, and impact reporting on energy use. Timeline: Annual report will be due each year in December. ● Final Report ○ The Grantee shall complete reimbursable work within 12 months of the Grant Agreement Effective Date and submit a final report. This report will demonstrate the completion of the project and installation of the electric equipment. To Page 682 of 1257 be acceptable, the final report must explain the Grantee’s procurement and installation process, and it must identify the location of the equipment accompanied with a picture of the installed unit. The Grantee shall provide an invoice to CEO for the purchase of the unit and associated equipment, permitting costs, and the labor costs associated with the installation. To be acceptable, the invoice must be supported by receipts or invoices for all equipment, permits, and labor. The invoice must include an itemized list of all project costs being considered under the grant, including a breakdown of those covered under HEEHA and by any match funding. Deliverables: Final report providing a summary of key accomplishments from the past year, including project completion and final reporting requirements. Timeline: Due at final reimbursement request within 12 months of Grant Effective Date. Budget: $0.00 3.1.3. Payment Requests/Reimbursements ● Grantee shall submit a finance/expenditure report including receipts/invoices detailing eligible project expenditures and pictures of operational equipment, along with the monthly progress report detailing installation and operation of electric equipment per unit complete. The electric equipment will be acceptable to the CEO if they are installed, operational, and available for use by the Fund Expenditure End Date. The Grantee’s invoice to CEO will be acceptable if it is properly supported by invoices or receipts and the costs are associated with procurement of electric equipment, construction materials, permitting, construction labor costs, and installation costs. ● The reimbursement report will be acceptable to CEO if it explains the Grantee’s procurement and installation process, and it identifies the location of the electric equipment accompanied with a picture of the installed units. If the units, invoice, and report are acceptable, the CEO Program Manager will submit the invoice to the accounting department for payment. ○ If the units, invoice, and report are unacceptable, the CEO Program Manager will work with the Grantee to correct, modify, or replace as needed. Page 683 of 1257 Deliverable/s:The following documentation is required for CEO to reimburse eligible costs on the project: ● Reimbursement Report ● Summary Invoice/Reimbursement Request ● Legible copies of all sales invoices showing the purchase price and amount paid by the applicant for the equipment, number of units purchased and serial numbers from the units. ● Legible copies of all invoices/receipts showing installation costs and number of labor hours spent by the installers and any subcontractors on the project. ● Date(s) of installation, installation completion and when the unit(s) are operational and available for use. ● Digital photograph(s) of the completed unit(s). ● Photographs must demonstrate adherence to the design standards. Additional photographs may be requested prior to reimbursement being finalized if this is not clearly demonstrated. ● All deliverables shall be adjusted to the final approval and discretion of the CEO. 3.2. Electrification Training 3.2.1. The grantee shall attend Colorado Energy Office’s Electrification Training Course to qualify for program match requirement reduction of 5%. Training shall be completed prior to Final Report submission. ● $12,500.00 will be withheld from the total budget allocated for electrification equipment until the deliverables are provided by the grantee. Deliverables: Evidence of attending, either in person or virtually, the electrification training for building electrification grant recipients hosted by the Colorado Energy Office 3.3. Equipment Installation & Commissioning 3.3.1. Equipment Installation The following activities will be performed and equipment will be purchased, installed, and operational: ○ Acoma Fire Station ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (2) ● Packaged Heat Pump Units -15 Tons (1) ● Associated equipment and labor costs required for equipment installation Page 684 of 1257 ○ Jefferson Fire Station ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (1) ● Packaged Heat Pump Units - 3 Tons (2); 1.5 Tons (1); 2 Tons (1); 5 Tons (1) ● Associated equipment and labor costs required for equipment installation ○ Malley Senior Center ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (10) ● Packaged Heat Pump Units - 10 Tons (2) ● Associated equipment and labor costs required for equipment installation ○ Recreation Center ■ Space Heating & Cooling ● Heat Pump Split Systems - 5 Tons (2); 20 Tons (1) ● Associated equipment and labor costs required for equipment installation Deliverables: Installation of approved appliances with supporting documentation including paid invoices and photos Budget: $250,000.00 3.3.2. Commissioning & Operational Verification Grantee shall undertake a process to ensure all systems & equipment are designed, installed, tested, operated, and maintained according to the operational requirements to ensure proper installation and operation. Grantee shall also clearly demonstrate installed equipment is primarily used over fossil fuel driven redundancy boiler(s). Deliverable/s: Supporting documentation including a commissioning logbook, IPMVP Option B compliant M&V plan and report and any supporting data and primary information to be provided within 1 year of project completion date. 3.3.3. Final Project Design Grantee is tasked with finalizing the detailed design of this project and providing CEO with a copy of such design. Deliverable/s: Copy of final project design development and construction documents upon completion. Page 685 of 1257 3.4. Local Match Amount Grantee shall submit to the Colorado Energy Office details on any federal and local grants or tax benefits received for the property that constitute grant match requirements. The grantee shall provide a total match of $1,909,000.00. ● $1,709,000.00 from City of Englewood Capital Contribution ● $200,000.00 in American Rescue Plan Act Funds Deliverable/s: Evidence of federal or local grant funding, tax credit/benefits or local rebates or received for this project. Evidence of general reserve funds and budgeted capital expenditure allocated for the project. 3.5. Acceptance Criteria Deliverables will be accepted upon timely submission and review by the CEO grant manager to ensure they meet all criteria in the above tasks and are included in the monthly reports from the Grantee. CEO shall notify the Grantee in writing within ten (10) calendar days of receiving a deliverable whether it accepts or rejects that deliverable. If no notification is delivered to the Grantee within this period, the deliverable shall be considered accepted. Any deliverable rejection notice shall specify in reasonable detail the way the deliverable does not materially conform to the specifications set forth in this Exhibit A. Grantee shall then implement such changes as reasonably required to bring the deliverable into material conformity with this Exhibit A. If, at the time the Grant is closed-out or terminated, it is determined that the Work is unfinished, incomplete, or unsatisfactory, or if Grantee fails to complete its obligations under this Statement of Work, in the State’s sole discretion, the State shall have the right to recover from Grantee up to 100% of the Grant Funds that have been expended. Page 686 of 1257