25.06.04 IGA Engineering Contracts PO # / OLA #: 400002549 / 331002617
Routing #: 22-HA3-XC-00223-ZM0002
Additional PO Reference: 400001584
Document Builder Generated
Rev. 12/09/2016
Page 1 of 1
IGA OPTION LETTER
Date State Fiscal Year Option Letter No.
05/22/2025 2025 5
Project Code Original Contract #
22-HA3-XC-00223C M058-003 (24776)
Vendor Name: TOWN OF AVON
SUBJECT
Option to unilaterally add phasing to include Design, Construction, Environmental, Utilities, ROW incidentals or
Miscellaneous and to update encumbrance amount(s).
REQUIRED PROVISIONS
In accordance with the terms of the original Agreement 22-HA3-XC-00223 between the State of Colorado,
Department of Transportation and TOWN OF AVON, the State hereby exercises the option to add a phase that will
include Construction and to encumber funds for the phase based on changes in funding availability and
authorization. The total encumbrance is now increased by $3,960,857.00. A new Exhibit C-7 is made part of the
original Agreement and replaces Exhibit C-6.
The total encumbrance as a result of this option and all previous options and/or amendments is now $4,600,000.00,
as referenced in Exhibit C-7. The total budgeted funds to satisfy services/goods ordered under the Agreement
remains the same: $5,200,000.00 as referenced in Exhibit C-7.
The effective date of this option letter is upon approval of the State Controller or delegate.
APPROVALS
State of Colorado:
Jared S. Polis, Governor
_____________________________________________ Date: __________________
By: Keith Stefanik, P.E., Chief Engineer
For: Shoshana M. Lew, Executive Director, Colorado Department of Transportation
ALL CONTRACTS MUST BE APPROVED BY THE STATE CONTROLLER
CRS §24-30-202 requires the State Controller to approve all State Contracts. This Contract is not valid
until signed and dated below by the State Controller or delegate. Contractor is not authorized to begin
performance until such time. If Contractor begins performing prior thereto, the State of Colorado is not
obligated to pay Contractor for such performance or for any goods and/or services provided hereunder.
State Controller
Robert Jaros, CPA, MBA, JD
By: __________________________________
Date: _________________________________
Docusign Envelope ID: C1530871-5C61-47BD-B9BB-116A97D7CCA8
6/3/2025
6/3/2025
State $ LA Work ROW
Exhibit C-7 - Page 1 of 2
EXHIBIT C-7 - FUNDING PROVISIONS
Town of Avon C M058-003 (24776)
A. Cost of Work Estimate
The Town of Avon has estimated the total cost of the Work to be $5,200,000.00, which
is to be funded as follows:
1. FUNDING
a. State Funds
(80% of RMS) $2,000,000.00
b. Local Agency Funds
(20% of RMS) $500,000.00
c. State Funds
(50% of MMO1) $1,000,000.00
(50% of MMO1 Award is $1,000,000 of RMS Award)
d. State Funds
(50% of MMO2) $1,600,000.00
e. Local Agency Funds
(50% of MMO2 Award is $1,500,000.00 of RMS Award
plus additional Local Agency funds of $100,000.00.)
$100,000.00
______________________________________________________________________
TOTAL BUDGETED FUNDS $5,200,000.00
______________________________________________________________________
2. ESTIMATED PAYMENT TO LOCAL AGENCY
a. State Funds Budgeted $4,600,000.00
______________________________________________________________________
TOTAL ESTIMATED PAYMENT TO LOCAL AGENCY 88.5% $4,600,000.00
TOTAL ESTIMATED FUNDING BY LOCAL AGENCY 11.5% $ 600,000.00
TOTAL PROJECT ESTIMATED FUNDING 100.00% $5,200,000.00
______________________________________________________________________
4. FOR CDOT ENCUMBRANCE PURPOSES
a. Total Encumbrance Amount
(Only State funds are encumbered) $4,600,000.00
b. Less ROW Acquisition 3111 and/or ROW Relocation 3109 $0.00
______________________________________________________________________
NET TO BE ENCUMBERED BY CDOT IS AS FOLLOWS $4,600,000.00
______________________________________________________________________
______________________________________________________________________
Design 3020
WBS Element 24776.10.30 Performance Period Start*/End Date $639,143.00
N/A
Const. 3301
WBS Element 24776.20.10 Performance Period Start*/End Date $3,960,857.00
N/A
______________________________________________________________________
Docusign Envelope ID: C1530871-5C61-47BD-B9BB-116A97D7CCA8
Exhibit C-7 - Page 2 of 2
*The Local Agency should not begin work until both of the following are in place: 1) the
execution of the document encumbering funds for the respective phase; and 2) Local
Agency receipt of the official Notice to Proceed. Any work performed before these two (2)
milestones are achieved will not be reimbursable.
B. Funding Ratio
The funding ratio for the State funds for this Work is 88.5% State funds to 11.5% Local
Agency funds, and this ratio applies only to the $5,200,000.00 that is eligible for State
funds. All other costs are borne by the Local Agency at 100%. If the total cost of
performance of the Work exceeds $5,200,000.00, and additional State funds are
available for the Work, the Local Agency shall pay 11.5% of all such costs eligible for
State funds and 100% of all other costs. If additional State funds are not available, the
Local Agency shall pay all such excess costs. If the total cost of performance of the Work
is less than $5,200,000.00, then the amount of Local Agency and State funds will be
decreased in accordance with the funding ratio described herein. This applies to the
entire scope of Work.
C. Maximum Amount Payable
The maximum amount payable to the Local Agency under this Agreement shall be
$4,600,000.00. For CDOT accounting purposes, the State funds of $4,600,000.00 will
be encumbered, but the Local Agency funds of $600,000.00 will NOT be encumbered.
The total budget of this project is $5,200,000.00, unless this amount is increased by an
executed amendment before any increased cost is incurred. The total cost of the Work
is the best estimate available, based on the design data as approved at the time of
execution of this Agreement, and any cost is subject to revisions agreed to by the
parties prior to bid and award. The maximum amount payable will be reduced without
amendment when the actual amount of the Local Agency’s awarded Agreement is less
than the budgeted total of the State funds and the Local Agency matching funds. The
maximum amount payable will be reduced through the execution of an Option Letter
as described in Section 6 of this contract. This applies to the entire scope of Work.
Docusign Envelope ID: C1530871-5C61-47BD-B9BB-116A97D7CCA8