HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/20/2021 - RESOLUTION 2021-041 SUPPORTING THE GRANT APPLICATI Agenda Item 25
Item # 25 Page 1
AGENDA ITEM SUMMARY April 20, 2021
City Council
STAFF
Katie Collins, Water Conservation Coordinator
Eric Potyondy, Legal
SUBJECT
Resolution 2021-041 Supporting the Grant Application by Fort Collins Utilities for the United States Department
of the Interior, Bureau of Reclamation’s WaterSMART Grants: Small-Scale Water Efficiency Projects for Fiscal
Year 2021 and Authorizing the City Manager to Execute Agreements Regarding Such a Grant.
EXECUTIVE SUMMARY
The purpose of this item is to request Council support to pursue a United States Bureau of Reclamation
(“Reclamation”) WaterSMART Grant: Small-Scale Water Efficiency Projects for Fiscal Year 2021
(“WaterSMART Grant”). If awarded, Fort Collins Utilities, through its Water Conservation Division (“Water
Conservation”), would use the funds to support commercial -scale waterwise transformations in partnership
with homeowners’ associations (“HOAs”) and commercial customers. Reclamation requires a resolution of
Council support be submitted as part of the grant application package. The Resolution demonstrates that the
applicant has support from its board to carry out the grant agreement, if awarded.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
Through the WaterSMART Grant, Water Conservation seeks additional funding for the Xeriscape Incentive
Program for Homeowner’s Associations (HOAs) and commercial customers to extend the time the program is
funded. This program has been and is financially supported through 2021 by the Water Conservation budget, a
Colorado Water Conservation Board Grant, and a previous WaterSMART grant. Funding from this grant would
extend the Xeriscape Incentive Program to projects in 2022. This important Water Conservatio n program aims
to financially and educationally assist Utilities’ commercial water customers, including HOAs’ irrigation
accounts, with commercial-scale waterwise landscape transformation projects such as the conversion from
turf-to-native grass or other low-water-use landscape.
About 7% of Utilities water customers are commercial accounts (including all irrigation -related accounts), yet
they use 40% of the treated water. Up to 60-70% of this is used to irrigate. The Water Efficiency Plan, adopted
by Council in 2016, identifies the great opportunity to achieve long-term water savings by working with
commercial customers on reducing outdoor water use. From research, surveys, and focus -groups, staff has
identified that funding and educational/technical resources are two main barriers to customers completing
these projects.
The Xeriscape Incentive Program for HOAs and commercial customers is currently working with six customers
during their landscape transformation projects and is in the process of selecting up to ten additional projects to
be completed in 2021. Supported by $65,000 in rebates from the program, these six projects make up a total
of 83,000 square feet of area proposed to be converted from high-water use landscape to low-water use. On
average, Water Conservation estimates that eight gallons per square foot savings for an estimated savings of
Agenda Item 25
Item # 25 Page 2
664,000 gallons of water annually saved by these six projects alone. In 2020, the pilot year of this program,
over 2 million gallons of actual water savings were recorded by seven customers across 13 acres. In addition
to water savings, this program is collecting valuable project data to help educate prospective applicants on
future successful projects.
If awarded the WaterSMART grant, staff anticipates providing a rebate of $1.50 per square foot of area
converted up to 10,000 square feet or a maximum $15,000 per project. Awardees are required to match any
rebate funding with their own organization’s funds.
All applicants for the WaterSMART Grants are requ ired to include an official resolution from their governing
board within 30 days of the application due date that verifies:
• The identity of the official with legal authority to enter into an agreement;
• Support of the application and use of grant funds;
• The capability of the applicant to provide the amount of funding and in-kind contributions for the grant;
• The applicant is committed to work with Reclamation to meet all established deadlines.
If awarded, Water Conservation is expected to submit financial and performance reports on at least an annual
basis that include information on project progress and cost.
With the support of Council, the Xeriscape Incentive Program for HOAs and commercial customers were
previously awarded two grants in 2019. These two grants, one from the State of Colorado and one from
Reclamation, fund the current Xeriscape Incentive Program. Previously awarded grant funds for this program
will run out by the end of 2021. An additional grant application, submitted in 2020, was denied funding by
Reclamation.
CITY FINANCIAL IMPACTS
Obtaining this grant would enable Water Conservation to continue to support a much -needed HOA and
commercial landscape transformation program. Reclamation requires a minimum 50% match of the total
project cost with cash or in-kind services. Per legal agreement with each customer in the program, the
Xeriscape Incentive Program requires awardees of the program to provide match in the amount awarded. The
awardee match shall satisfy the Reclamation required match.
BOARD / COMMISSION RECOMMENDATION
Staff is presenting this application to Water Board at the April 15, 2021 meeting. Draft meeting minutes
pertaining to this item will be provided to Council in a memo prior to the meeting.
ATTACHMENTS
1. Grant Funding Announcement (PDF)
U.S. Department of the Interior January 2021
WaterSMART Grants:
Small-Scale Water Efficiency
Projects
Notice of Funding Opportunity No. R21AS00300
ATTACHMENT 1
Mission Statements
The Department of the Interior (DOI) conserves and manages the
Nation’s natural resources and cultural heritage for the benefit and
enjoyment of the American people, provides scientific and other
information about natural resources and natural hazards to address
societal challenges and create opportunities for the American people,
and honors the Nation’s trust responsibilities or special commitments
to American Indians, Alaska Natives, and affiliated island
communities to help them prosper.
The mission of the Bureau of Reclamation is to manage, develop, and
protect water and related resources in an environmentally and
economically sound manner in the interest of the American public.
Cover Photo: Huntington Cleveland Canal, Emery County Project, Utah
Synopsis
iii
Synopsis
Federal Agency Name: Department of the Interior, Bureau of Reclamation, Chief Engineer
Funding Opportunity Title: WaterSMART Grants: Small-Scale Water Efficiency Projects
Announcement Type: Notice of Funding Opportunity (NOFO)
Funding Opportunity Number: R21AS00300
Catalog of Federal
Domestic Assistance (CFDA) Number:
15.507
Dates: (See NOFO Sec. D.4) Application due Date: Thursday, March 18, 2021,
4:00 p.m. Mountain Daylight Time (MDT)
Eligible Applicants: (See NOFO Sec. C.2.1) Category A: States; Indian Tribes; irrigation districts; water districts; state, regional, or local authorities, whose members include one or more organizations with water or power delivery authority; and other organizations with water or power delivery authority.
Category B: Nonprofit conservation organizations that are acting in
partnership and with the agreement of an entity described in Category A.
All applicants must be located in the Western United States or United States Territories, including Alaska, Arizona, California,
Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American Samoa, Guam, the Northern Mariana Islands, the Virgin Islands, and Puerto Rico.
Recipient Cost Share: (See NOFO Sec. C.2) 50 percent or more of total project costs.
Federal Funding Amount: (See NOFO Sec. B.1) Up to $75,000 per applicant. Total project costs should generally be $200,000 or less
Estimated Number of Agreements to be
Awarded: (See NOFO Sec. B.1)
Approximately 30-40 projects contingent upon available appropriations.
Application Checklist
v
Application Checklist
The following table contains a summary of the information that you are required to submit with
your application.
√ What to submit Required content Form or format When to submit
Mandatory Federal Forms:
Application for Federal Financial Assistance
Budget Information
Assurances
See Sec. D.2.2.1 SF-424, SF-424A, SF-424B, SF-424C, SF-424D
and SF-LLL forms may be obtained at www.grants.gov/web/grants/forms/sf-424-
family.html
*
Title page See Sec. D.2.2.2 Page 13 *
Table of contents See Sec. D.2.2.3 Page 13 *
Technical proposal: *
Executive summary See Sec. D.2.2.4 Page 13 *
Project location See Sec. D.2.2.4 Page 14 *
Project description See Sec. D.2.2.4 Page 14 *
Evaluation criteria See Sec. E.1 Page 27 *
Project Budget: *
Funding plan See Sec. D.2.2.5 Page 15 *
Budget proposal See Sec. D.2.2.5 Page 16 *
Budget narrative See Sec. D.2.2.5 Page 18 *
Environmental and cultural resources compliance See Sec. D.2.2.6 Page 21 *
Required permits or approvals See Sec. D.2.2.7 Page 21 *
Official Resolutions See Sec. D.2.2.8 Page 21 **
Unique Entity Identifier and System for Award Management See Sec. D.3 Page 22 ***
* Submit materials with your application. ** Document should be submitted with your application; however, please refer to the applicable section of the NOFO
for extended submission date. *** Should be completed prior to the application deadline; however, please refer to the applicable section of the NOFO for extended completion date.
Acronyms and Abbreviations
vii
Acronyms and Abbreviations
ASAP Automated Standard Application for Payments
ARC Application Review Committee
CE Categorical Exclusion
CEC Categorical Exclusion Checklist
CFDA Catalog of Federal Domestic Assistance
CFR Code of Federal Regulations
CWA Clean Water Act
Department U.S. Department of the Interior
DUNS Data Universal Number System
EA Environmental Assessment
EIS Environmental Impact Statement
EQIP Environmental Quality Incentives Program
ESA Endangered Species Act
FOIA Freedom of Information Act
FONSI Finding of No Significant Impact
FY fiscal year
MDT Mountain Daylight Time
MTDC modified total direct costs
NEPA National Environmental Policy Act
NHPA National Historic Preservation Act
NOAA National Oceanic and Atmospheric Administration
NOFO Notice of Funding Opportunity
NRCS Natural Resource Conservation Service
OM&R operations, maintenance, and replacement
P.L. Public Law
SAM System of Award Management
SCADA Supervisory Control and Data Acquisition and Automation
Reclamation Bureau of Reclamation
USACE United States Army Corps of Engineers
USDA U.S. Department of Agriculture
U.S.C. United States Code
USFWS U.S. Fish and Wildlife Service
WaterSMART Sustain and Manage America’s Resources for Tomorrow
Contents
ix
Contents
Page
Synopsis .................................................................................................................................. iii
Application Checklist ............................................................................................................... v
Acronyms and Abbreviations ................................................................................................ vii
Section A. Funding Opportunity Description.......................................................................... 1
A.1. Program Information ....................................................................................................................... 1
A.2. Objective of this Notice of Funding Opportunity ...................................................................... 1
A.3. Statutory Authority ........................................................................................................................... 2
A.4. Other Related Funding Opportunities .......................................................................................... 2
A.5. Collaboration with the Natural Resources Conservation Service ............................................. 2
Section B. Award Information .................................................................................................. 5
B.1. Total Funding .................................................................................................................................... 5
B.2. Project Funding Limitations ............................................................................................................ 5
B.3. Environmental and Cultural Resource Compliance .................................................................... 5
B.4. Assistance Instrument ...................................................................................................................... 6
Section C. Eligibility Information ............................................................................................ 7
C.1. Eligible Applicants ............................................................................................................................ 7
C.2. Cost-Sharing Requirements ............................................................................................................. 7
C.3. Eligible Projects ................................................................................................................................ 8
Section D. Application and Submission Information ............................................................ 11
D.1. Address to Request Application Package ................................................................................... 11
D.2. Content and Form of Application Submission ......................................................................... 11
D.3. Unique Entity Identifier and System for Award Management ................................................ 22
D.4. Submission Date and Time ........................................................................................................... 22
D.5. Intergovernmental Review ............................................................................................................ 25
D.6. Automated Standard Application for Payments Registration ................................................. 25
Section E. Application Review Information .......................................................................... 27
E.1. Technical Proposal: Evaluation Criteria ...................................................................................... 27
E.2. Review and Selection Process ....................................................................................................... 29
E.4. Anticipated Announcement and Federal Award Date .............................................................. 32
Section F. Federal Award Administration Information ......................................................... 33
F.1. Federal Award Notices ................................................................................................................... 33
F.2. Administrative and National Policy Requirements .................................................................... 33
F.3. Reporting—Requirements and Distribution ............................................................................... 36
F.4. Conflicts of Interest ........................................................................................................................ 37
F.5. Data Availability .............................................................................................................................. 38
F.6. Releasing Applications .................................................................................................................... 39
Section G. Agency Contacts ................................................................................................... 41
G.1. Reclamation Financial Assistance Contact ................................................................................. 41
G.2. Reclamation Program Coordinator Contact .............................................................................. 42
Section H. Other Information ................................................................................................ 43
H.1. Environmental and Cultural Resource Considerations ............................................................ 43
H.2. Background on Federal Environmental and Cultural Resource Laws ................................... 44
Section A. Funding Opportunity Description
1
Section A. Funding Opportunity Description
A.1. Program Information
The U.S. Department of the Interior’s (Department) WaterSMART (Sustain and Manage America’s
Resources for Tomorrow) Program provides a framework for Federal leadership and assistance to
stretch and secure water supplies for future generations. Through WaterSMART, the Bureau of
Reclamation (Reclamation) leverages Federal and non-Federal funding to support stakeholder
efforts to stretch scarce water supplies and avoid conflicts over water.
Through Small-Scale Water Efficiency Projects, Reclamation provides assistance to States, Tribes,
irrigation districts, water districts, and other entities with water or power delivery authority to
undertake small-scale water efficiency projects that have been prioritized through planning efforts
led by the applicant. These projects conserve and use water more efficiently; mitigate conflict risk in
areas at a high risk of future water conflict; and accomplish other benefits that contribute to water
supply reliability in the western United States. For further information on WaterSMART Grants,
please see www.usbr.gov/watersmart/index.html.
This Small-Scale Water Efficiency Projects Notice of Funding Opportunity (NOFO)
supports Small-Scale Water Efficiency Projects that have been prioritized through planning
efforts led by the applicant. These projects are generally in the final design stage,
environmental and cultural resources compliance have been initiated or already completed,
and the non-Federal funding, necessary permits, and other required approvals have been
secured.
Small-Scale Water Efficiency Projects are a component of Reclamation’s WaterSMART Grants
Program, which also includes Water and Energy Efficiency Grants and Water Marketing Strategy
Grants. For further information on the WaterSMART Grants Program, please see
www.usbr.gov/watersmart/index.html.
A.2. Objective of this Notice of Funding Opportunity
The objective of this NOFO is to invite States, Indian Tribes, irrigation districts, water districts, and
other organizations with water or power delivery authority to leverage their money and resources by
cost sharing with Reclamation on small-scale on-the-ground projects that seek to conserve, better
manage, or otherwise make more efficient use of water supplies.
Proposed projects that are supported by an existing water management and conservation plan,
System Optimization Review, or other planning effort led by the applicant are prioritized. This
prioritization will help ensure that projects funded under this NOFO are well thought out, have
public support, and have been identified as the best way to address water management concerns.
Notice of Funding Opportunity No. R21AS00300
2
A.2.1 Streamlined Application and Selection Process
Reclamation has simplified the evaluation criteria and streamlined the application process for this
category of WaterSMART Grants to ensure the process works for smaller entities. Simplified
evaluation criteria are intended to provide each applicant with an opportunity to succinctly explain
how the proposed project would meet a defined need identified through a prior planning effort.
Reclamation has also clarified the budget documentation necessary under this NOFO in recognition
of the small-scale nature of the projects being funded.
A.3. Statutory Authority
This NOFO is issued under the authority of Section 9504(a) of the Secure Water Act, Subtitle F of
Title IX of the Omnibus Public Land Management Act of 2009, Public Law (P.L.) 111-11
(42 United States Code [U.S.C.] 10364), as amended.
A.4. Other Related Funding Opportunities
Reclamation provides funding for water management projects through several other programs under
WaterSMART. Through WaterSMART Grants, Reclamation provides two additional funding
opportunities. Water and Energy Efficiency Grants focus on projects that result in quantifiable and
sustained water savings and projects that increase hydropower use. Through Water Marketing
Strategy Grants, Reclamation provides support for entities exploring actions that can be taken to
develop or facilitate water marketing.
Through the Drought Response Program, Reclamation provides funding to help build resilience to
drought. Through Drought Contingency Planning, Reclamation supports the development of
drought contingency plans with participation from a diverse set of stakeholders. Reclamation also
provides funding for Drought Resiliency Projects supported by an existing drought contingency plan
to build long term resilience to drought.
Reclamation also provides financial assistance for watershed group development, restoration
planning, and watershed management project design (Phase I) and watershed management project
implementation through the Cooperative Watershed Management Program. For information on the
NOFOs listed here, please visit the WaterSMART Program website: www.usbr.gov/watersmart/
index.html.
A.5. Collaboration with the Natural Resources Conservation
Service
Reclamation and the U.S. Department of Agriculture’s (USDA) Natural Resources Conservation
Service (NRCS) are collaborating to align program resources in areas where our mission areas
overlap (17 Western States), to improve the impact of the agencies’ respective drought resiliency and
water efficiency investments. In 2011, NRCS and Reclamation began efforts to coordinate water
conservation activities in California. Beginning in 2012, Reclamation made changes to WaterSMART
Water and Energy Efficiency Grants to support similar collaboration on a West-wide basis.
Applicants under the WaterSMART Grants program receive additional consideration in the
Section A. Funding Opportunity Description
3
evaluation process for delivery system improvements that complement on-farm improvements
supported by NRCS such as through their Environmental Quality Incentives Program (EQIP).
Contingent on available appropriations, NRCS provides dedicated EQIP funding to support on-
farm water efficiency improvements by producers served by water delivery infrastructure improved
through a WaterSMART Grant. In fiscal year (FY) 2017, Reclamation and NRCS began working
together to expand this partnership to include collaboration on a broader range of activities,
including projects funded through this NOFO.
Please note that on-farm improvements themselves are not eligible activities for funding
under this NOFO. NRCS will have a separate application process for the on-farm
components of selected projects.
Under this NOFO, consideration will be given under Section E.1.1. Evaluation Criterion A—Project
Benefits for proposals that describe on-farm efficiency work that is currently being completed or is
anticipated to be completed in collaboration with NRCS in the area (e.g., with a direct connection to
the district’s water supply). Please contact your local NRCS office for more information regarding
NRCS assistance. You can find the contact information for your state NRCS office on the USDA’s
website, www.nrcs.usda.gov/wps/portal/nrcs/main/national/contact/states/.
Section B. Award Information
5
Section B. Award Information
B.1. Total Funding
Approximately $3 million is available for this NOFO, with per-project and recipient funding limits as
described in Section B.2. Project Funding Limitations. The total amount of funding for awards under this
NOFO will depend on the demand for funding under this and other categories of WaterSMART
Grants.
Applications submitted under this NOFO may also be considered if additional funding becomes
available in FY 2021 or thereafter.
B.2. Project Funding Limitations
No more than one award will be made to a Category A applicant per FY under this NOFO.
Category B applicants may receive multiple awards for separate projects with different
Category A partners. See Section C.1. Eligible Applicants for additional information on
applicant eligibility. The Federal share of any one proposed project shall not exceed 50 percent of
the total project costs. Generally, the non-Federal share of project costs must be expended at the
same or greater rate as the Federal share of project costs.
Up to $75,000 in Federal funds per proposal will be available through this NOFO to implement
small-scale on-the-ground water efficiency projects. To be considered a small-scale project, total
project costs should generally be $200,000 or less. The budget proposal must include the cost of all
equipment, materials and supplies, and labor or contractual costs to complete the project. Note: The
Application Review Committee (ARC; See Section E.2.2. Application Review Committee) has final
discretion to determine whether a project is “small-scale.”
Projects that have a total project costs totaling more than $200,000 should be submitted
under the WaterSMART Grants: Water and Energy Efficiency Grants NOFO. Reclamation
will not award funding for the same activity under both this NOFO and this year’s Water
and Energy Efficiency Grants NOFO.
B.3. Environmental and Cultural Resource Compliance
All projects selected for funding under this NOFO will be required to comply with Federal
environmental and cultural resource laws and other regulations. Projects funded under this NOFO
may require the completion of an environmental assessment (EA) under the National
Environmental Policy Act (NEPA), which can be costly. Please consider this when developing your
project budget. See Section D.2.2.5 Project Budget for additional information.
Notice of Funding Opportunity No. R21AS00300
6
B.4. Assistance Instrument
Project awards will be made through grants or cooperative agreements as applicable to each project.
If a cooperative agreement is awarded, the recipient should expect Reclamation to have substantial
involvement in the project.
Substantial involvement by Reclamation may include:
• Collaboration and participation with the recipient in the management of the project and
close oversight of the recipient’s activities to ensure that the program objectives are being
achieved.
• Oversight may include review, input, and approval at key interim stages of the project.
At the request of the recipient, Reclamation can provide technical assistance after award of the
project. If you receive Reclamation’s assistance, you must account for these costs in your budget. To
discuss available assistance and these costs, contact the program coordinator identified in Section G.
Agency Contacts.
Section C. Eligibility Information
7
Section C. Eligibility Information
C.1. Eligible Applicants
Under P.L. 111-11, Section 9502, applicants eligible to receive an award under this NOFO include:
1. Category A:
• States, Indian Tribes, irrigation districts, and water districts;
• State, regional, or local authorities, whose members include one or more organizations
with water or power delivery authority; and
• Other organizations with water or power delivery authority.
2. Category B: Nonprofit conservation organizations that are acting in partnership with and
with the agreement of an entity described in Category A. Category B applicants must
include with their application a letter from the Category A partner, stating that they are
acting in partnership with the applicant and agree to the submittal and content of the
proposal.
To be eligible, applicants must also be located in one of the following States or Territories: Alaska,
Arizona, California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico,
North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American
Samoa, Guam, the Northern Mariana Islands, the Virgin Islands, and Puerto Rico.
Those not eligible include, but are not limited to, the following entities:
• Federal governmental entities
• Institutions of higher education
• Individuals
• 501(c)4 organizations
• 501(c)6 organizations
C.2. Cost-Sharing Requirements
Applicants must be capable of cost sharing 50 percent or more of the total project cost. The total
project cost is defined as the total allowable costs incurred under a Federal award and all required
cost share and voluntary committed cost-share contributions, including third-party contributions.
Cost share may be made through cash, costs contributed by the applicant, or third-party in-kind
contributions. Third-party in-kind contributions is the value of non-cash contributions of property
or services that benefit the federally assisted project and are contributed by non-Federal third
parties, without charge. Cost-share funding from sources outside the applicant’s organization
(e.g., loans or state grants) should be secured and available to the applicant prior to award.
Notice of Funding Opportunity No. R21AS00300
8
Please see Section D.2.2.8. Official Resolution and Section D.2.2.5. Funding Plan and Letters of Commitment
for more information regarding the documentation required to verify commitments to meet cost-
sharing requirements.
Other sources of Federal funding may not be counted towards the required cost share. The
exception to this requirement is where the Federal statute authorizing a program specifically
provides that Federal funds made available for such program can be applied to matching or cost-
sharing requirements of other Federal programs, such as awards to tribal organizations under
P.L. 93-638, as amended. If it is determined that the Federal funding cannot be applied towards the non-Federal
cost share, the work associated with the funding may be removed from the proposed project.
C.2.1. Cost-Share Regulations
All cost-share contributions must meet the applicable administrative and cost principles criteria
established in 2 Code of Federal Regulations (CFR) Part 200, available at www.ecfr.gov.
C.2.2. Third-Party In-Kind Contributions
Third-party in-kind contributions may be in the form of equipment, supplies, and other expendable
property, as well as the value of services directly benefiting and specifically identifiable to the
proposed project. The cost or value of third-party in-kind contributions that have been or will be
relied on to satisfy a cost-sharing or matching requirement for another Federal financial assistance
agreement, a Federal procurement contract, or any other award of Federal funds may not be relied
on to satisfy the cost-share requirement for an award under this NOFO. Applicants should refer to
2 CFR §200.434 Contributions and donations for regulations regarding the valuation of third-party in-
kind contributions, available at www.ecfr.gov.
C.3. Eligible Projects
C.3.1 Eligible Projects
Reclamation will provide funding for small-scale on-the-ground water efficiency projects which seek
to implement work identified in an applicant’s water planning efforts.
Example projects include, but are not limited to:
• Canal lining/piping
• Municipal metering
• Irrigation flow measurement
• Supervisory Control and Data Acquisition and Automation (SCADA)
• Irrigation measures
Other projects that are similar to those tasks listed above may be submitted for consideration and
will be allowed to the extent that they are consistent with program authorization and goals.
Section C. Eligibility Information
9
C.3.2. Ineligible Projects
Projects that are not eligible for funding under this NOFO include, but are not limited to:
• Projects considered normal operations, maintenance, and replacement (OM&R)
• Reclamation, reuse, and desalination projects
• Water purchases
• Construction of buildings for administration purposes
• Pilot projects
• Installation of high-efficiency indoor appliances and fixtures, including toilets and urinals
The subsections below explain more about these types of ineligible projects.
C.3.2.1. Operations, Maintenance, and Replacement
In accordance with Section 9504 of Secure Water Act, projects that are considered normal OM&R
are not eligible for funding under this NOFO. OM&R is described as system improvements that
replace or repair existing infrastructure or function without providing increased efficiency or
effectiveness of water distribution over the expected life of the improvement. Examples of ineligible
OM&R projects include:
• Replacing malfunctioning components of an existing facility with the same components
• Improving an existing facility to operate as originally designed
• Performing an activity on a recurring basis, even if that period is extended (e.g., a 10-year
interval)
• Sealing expansion joints of concrete lining because the original sealer or the water stops have
failed
• Sealing cracks in canals and/or pipes, including those sealant projects intended to improve
facilities with inherent design and construction flaws
• Replacing broken meters with new meters of the same type
• Replacing leaky pipes with new pipes of the same type
• Completion of one-time leak detection surveys
Applicants that have questions regarding OM&R are encouraged to contact the Program
Coordinator (see Section G. Agency Contacts) prior to the application deadline for further information.
Notice of Funding Opportunity No. R21AS00300
10
C.3.2.2. Reclamation, Reuse, and Desalination
Water reclamation, reuse, and desalination projects are not eligible for funding under this NOFO.
Entities seeking funding for these types of projects should consider Reclamation’s Title XVI Water
Reclamation and Reuse Program and Drought Response Program. If you have questions about a
water reclamation, reuse, or desalination project please contact Ms. Amanda Erath at 303-445-2766
or aerath@usbr.gov.
C.3.2.3. Water Purchase
Proposals to use Federal funding to purchase water are not eligible under this NOFO. Applicants
seeking funding to purchase water in a drought emergency should request emergency drought
assistance under Reclamation’s Drought Response Program. For more information about the
requirements for receiving emergency drought assistance, please see www.usbr.gov/drought/.
C.3.2.4. Building Construction
Proposals to construct a building are not eligible for Federal funding under this NOFO (e.g., a
building to house administrative staff or to promote public awareness of water conservation).
C.3.2.5. Pilot Projects
Proposals to conduct a pilot study to evaluate technical capability, economic feasibility, or viability
for full-scale implementation or to test an unproven material or technology are not eligible for
Federal funding under this NOFO.
C.3.2.6. High-Efficiency Appliances and Fixtures
Proposals to install high-efficiency indoor appliances and fixtures, including toilets, either directly or
through rebate programs, are not eligible for Federal funding under this NOFO.
C.3.3. Construction Start Date Restrictions
Proposed projects shall not have a construction start date that is prior to January 31, 2022.
C.3.4. Length of Projects
In general, proposed projects should be completed within two years of award. Applications for
projects requiring more time will be considered for funding only under limited circumstances.
Reclamation retains the right to make a determination about the feasibility of a project to be
completed within the timeframe identified in the application.
Section D. Application and Submission Information
11
Section D. Application and Submission
Information
D.1. Address to Request Application Package
This document contains all information, forms, and electronic addresses required to obtain the
information required for submission of an application.
If you are unable to access this information electronically, you can request paper copies of any of the
documents referenced in this NOFO by contacting:
By mail: Bureau of Reclamation
Financial Assistance Support Section
Attn: Mr. Matthew Reichert
P.O. Box 25007, MS 84-27133
Denver, CO 80225
By email: SHA-DRO-FAFOA@usbr.gov
By phone: 303-445-3865
OR
By mail: Bureau of Reclamation
Financial Assistance Support Section
Attn: Mr. Ned Weakland
P.O. Box 25007, MS 84-27133
Denver, CO 80225
By email: SHA-DRO-FAFOA@usbr.gov
By phone: 303-445-3757
D.2. Content and Form of Application Submission
All applications must conform to the requirements set forth below.
D.2.1. Application Format and Length
The total technical proposal and criteria section (defined below) shall be limited to a maximum of
15 consecutively numbered pages. If this section exceeds 15 pages, only the first 15 pages will be
evaluated. The font shall be at least 12 points in size and easily readable. Page size shall be 8½ by
11 inches, including charts, maps, and drawings. Margins should be standard 1-inch margins.
Oversized pages will not be accepted.
Notice of Funding Opportunity No. R21AS00300
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Applications will be prescreened for compliance to the above page number limitation. Excess pages
will be removed and will not be considered in the evaluation of the proposed project.
D.2.2. Application Content
The application must include the following elements to be considered complete:
• Mandatory Federal Forms
o SF-424 Application for Federal Assistance
o SF-424 Budget Information (A or C Form, as applicable to the project)
o SF-424 Assurances (B or D Form, as applicable to the project)
These forms may be obtained at www.grants.gov/web/grants/forms/sf-424-family.html
• Title page
• Table of contents
• Technical proposal and evaluation criteria (limited to 15 pages)
o Executive summary
o Project location
o Project description
o Evaluation criteria
• Project budget
o Funding plan and letters of commitment
o Budget proposal
o Budget narrative
• Environmental and cultural resources compliance
• Required permits or approvals
• Letters of project support
• Official resolution
It is highly recommended that application packages be structured in the order identified above.
D.2.2.1. Mandatory Federal Forms
The application must include the following standard Federal forms:
SF-424 Application for Federal Assistance
A fully completed SF-424, Application for Federal Assistance signed by a person legally authorized
to commit the applicant to performance of the project must be submitted with the application.
Failure to submit a properly signed SF-424 may result in the elimination of the application from
further consideration.
Section D. Application and Submission Information
13
SF-424 Budget Information
A fully completed SF-424A Budget Information Non-Construction Programs, or an SF-424C
Budget Information Construction Programs must be submitted with the application.
SF-424 Assurances
A SF-424B Assurances Non-Construction Programs, or an SF-424D Assurances Construction
Programs, signed by a person legally authorized to commit the applicant to performance of the
project shall be included. Questions regarding whether to use SF-424B or SF-424D should be
referred to the Grants Management Point of Contact under Agency Contacts. Failure to submit a
properly signed SF-424B or SF-424D may result in the elimination of the application from further
consideration.
D.2.2.2. Title Page
Provide a brief, informative, and descriptive title for the proposed work that indicates the nature of
the project. Include the name and address of the applicant, and the name and address, email address,
and telephone of the project manager.
D.2.2.3. Table of Contents
List all major sections of the proposal in the table of contents.
D.2.2.4. Technical Proposal and Evaluation Criteria
The technical proposal and evaluation criteria (15 pages maximum) include:
(1) Executive summary
(2) Project location
(3) Project description
(4) Evaluation criteria
Executive Summary
The executive summary should include:
• The date, applicant name, city, county, and state.
• Please indicate whether you are a Category A applicant or a Category B applicant. If you are
a Category B applicant, please briefly explain how you are acting in partnership with a
Category A partner. Note: If you are a Category B applicant, you must include a letter from
the Category A partner confirming that they are partnering with you and agree to the
submittal and content of the proposal (see Section C.1. Eligible Applicants for additional
information).
• A one paragraph project summary that provides the location of the project, a brief
description of the work that will be carried out, any partners involved, expected benefits and
how those benefits relate to the water management issues you plan to address. This
information will be used to create a summary of your project for Reclamation’s website if the
project is selected for funding.
Notice of Funding Opportunity No. R21AS00300
14
Example: The Newton Water Users Association, located in northern Utah, will upgrade the Jones
Pipeline from 1.1 miles of transit pipe to high density polyethylene or polyynyl chloride pipe. The project will
also upgrade meters and isolation valves at 14 or the 28 customer turnouts along the Jones Pipeline. The
upgrade will reduce seepage losses and enable the Association and stakeholders to better manage the water
supply. The project will also make the Jones Pipeline compatible with the recently pressurized main canal and
will enable agricultural customers to make future on-farm irrigation improvements. The project meets the goals
of the Association’s Water Management and Conservation Plan in 2015.
• State the length of time and estimated completion date for the proposed project including
the construction start date (month/year). Note: Proposed projects shall not have a
construction start date that is prior to J anuary 31, 2022, for FY 2021 funding. See
Section C.3.3. Construction Start Date Restrictions for additional information.
• Whether or not the proposed project is located on a Federal facility.
Project Location
Provide detailed information on the proposed project location or project area including a map
showing the geographic location. For example, {project name} is located in {state and county}
approximately {distance} miles {direction, e.g., northeast} of {nearest town}. The project latitude is
{##°##’N} and longitude is {###°##’W}.
Project Description
Provide a more comprehensive description of the technical aspects of your project, including the
work to be accomplished and the approach to complete the work. This description should provide
detailed information about the project including materials and equipment and the work to be
conducted to complete the project. This section provides an opportunity for the applicant to
provide a clear description of the technical nature of the project and to address any aspect of the
project that reviewers may need additional information to understand.
Please do not include your project schedule and milestones here; that information is requested in response to the
Readiness to Proceed criterion below. In addition, please avoid discussion of the benefits of the project, which are also
requested in response to evaluation criteria. This section is solely intended to provide an understanding of the technical
aspects of the project.
Please note, if the work for which you are requesting funding is a phase of a larger project, please only describe the
work that is reflected in the budget and exclude description of other activities or components of the overall project.
Evaluation Criteria
The evaluation criteria portion of your application should thoroughly address each criterion and
subcriterion in the order presented to assist in the complete and accurate evaluation of your
proposal.
(See Section E.1. Technical Proposal: Evaluation Criteria for additional details, including a detailed
description of each criterion and subcriterion and points associated with each.)
It is suggested that applicants copy and paste the evaluation criteria and subcriteria in Section E.1. Technical
Proposal: Evaluation Criteria into their applications to ensure that all necessary information is adequately
addressed.
Section D. Application and Submission Information
15
D.2.2.5. Project Budget
The project budget includes:
(1) Funding plan and letters of commitment
(2) Budget proposal
(3) Budget narrative
Project costs for environmental and cultural compliance and engineering/design that were incurred
or are anticipated to be incurred prior to award should be included in the proposed project budget.
If the proposed project is selected, the awarding Reclamation Grants Officer will review the
proposed pre-award costs to determine if they are consistent with program objectives and are
allowable in accordance with the authorizing legislation. Proposed pre-award costs must also be
compliant with all applicable administrative and cost principles criteria established in 2 CFR Part
200, available at www.ecfr.gov, and all other requirements of this NOFO. In no case will costs
incurred prior to July 1, 2020, be considered for inclusion in the proposed project budget.
Note: Proposed proje cts shall not have a construction start date that is prior to January 31,
2022. See Section C.3.3. Construction Start Date Restrictions for additional information.
Please note that the costs for preparing and submitting an application in response to this NOFO, including the
development of data necessary to support the proposal, are not eligible project costs under this NOFO and must not be
included in the project budget. In addition, budget proposals must not include costs for the purchase of water or land, or
to secure an easement other than a construction easement. These costs are not eligible project costs under this NOFO.
Funding Plan and Letters of Commitment
Describe how the non-Federal share of project costs will be obtained. Reclamation will use this
information in making a determination of financial capability.
Project funding provided by a source other than the applicant shall be supported with letters of
commitment from these additional sources. Letters of commitment shall identify the following
elements:
• The amount of funding commitment
• The date the funds will be available to the applicant
• Any time constraints on the availability of funds
• Any other contingencies associated with the funding commitment
Commitment letters from third-party funding sources should be submitted with your application. If
commitment letters are not available at the time of the application submission, please provide a
timeline for submission of all commitment letters. Cost-share funding from sources outside the
applicant’s organization (e.g., loans or State grants), should be secured and available to the applicant
prior to award.
Notice of Funding Opportunity No. R21AS00300
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Reclamation will not make funds available for an award under this NOFO until the recipient has
secured the non-Federal cost-share. Reclamation will execute a financial assistance agreement once
non-Federal funding has been secured or Reclamation determines that there is sufficient evidence
and likelihood that non-Federal funds will be available to the applicant subsequent to executing the
agreement.
Please identify the sources of the non-Federal cost-share contribution for the project, including:
• Any monetary contributions by the applicant towards the cost-share requirement and source
of funds (e.g., reserve account, tax revenue, and/or assessments)
• Any costs that will be contributed by the applicant
• Any third-party in-kind costs (i.e., goods and services provided by a third party)
• Any cash requested or received from other non-Federal entities
• Any pending funding requests (i.e. grants or loans) that have not yet been approved and
explain how the project will be affected if such funding is denied
In addition, please identify whether the budget proposal includes any project costs that have been or
may be incurred prior to award. For each cost, describe:
• The project expenditure and amount
• The date of cost incurrence
• How the expenditure benefits the project
Budget Proposal
The total project cost (Total Project Cost), is the sum of all allowable items of costs, including all
required cost sharing and voluntary committed cost sharing, including third-party contributions, that
are necessary to complete the project (Table 1). Note: The budget proposal must include the cost of
all equipment, materials and supplies, and labor or contractual costs to complete the project.
Applicants must include the costs of all equipment, materials and supplies, and labor required to
complete the project in the budget proposal (Table 2).
Table 1.—Total Project Cost Table
SOURCE AMOUNT
Costs to be reimbursed with the requested Federal funding $
Costs to be paid by the applicant $
Value of third-party contributions $
TOTAL PROJECT COST $
Section D. Application and Submission Information
17
Table 2.—Sample Budget Proposal Format
BUDGET ITEM DESCRIPTION COMPUTATION Quantity Type TOTAL COST $/Unit Quantity
Salaries and Wages
Employee 1 $
Employee 2 $
Employee 3 $
Fringe Benefits
Full-Time Employees $
BUDGET ITEM DESCRIPTION COMPUTATION Quantity Type TOTAL COST $/Unit Quantity
Salaries and Wages
Employee 1 $
Employee 2 $
Employee 3 $
Fringe Benefits
Full-Time Employees $
Part-Time Employees $
Travel
Trip 1 $
Trip 2 $
Trip 3 $
Equipment
Item A $
Item B $
Item C $
Supplies and Materials
Item A $
Item B $
Contractual/Construction
Contractor A $
Contractor B $
Other
Other $
TOTAL DIRECT COSTS $
Indirect Costs
Type of rate percentage $base $
TOTAL ESTIMATED PROJECT COSTS $
Notice of Funding Opportunity No. R21AS00300
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The budget proposal should include detailed information on the categories listed on the next page
and must clearly identify all cost items, including those that will be contributed as non-Federal cost
share by the applicant (required and voluntary), third-party in-kind contributions, and those that will
be covered using the funding requested from Reclamation, including any requested pre-award costs.
Unit costs must be provided for all budget items including the cost of services or other work to be
provided by consultants and contractors. Applicants are strongly encouraged to review the
procurement standards for Federal awards found at 2 CFR §200.317 through §200.326 before
developing their budget proposal.
It is also strongly advised that applicants use the budget proposal format shown below in Table 2 or
a similar format that provides this information. If selected for award, successful applicants must
submit detailed supporting documentation for all budgeted costs. It is not necessary to include
separate columns indicating which cost is being contributed as non-Federal cost share or which
costs will be reimbursed with Federal funds.
Note: The costs of preparing bids, proposals, or applications on potential Federal and non-
Federal awards or projects, including the development of data necessary to support the non-
Federal entity’s application are not eligible project costs and should not be included in the
budget proposal (2 CFR §200.460).
Budget Narrative
Submission of a budget narrative is mandatory. An award will not be made to any applicant who
fails to fully disclose this information. The budget narrative provides a discussion of, or explanation
for, items included in the budget proposal. The types of information to describe in the narrative
include, but are not limited to, those listed in the following subsections. Costs, including the
valuation of third-party in-kind contributions, must comply with the applicable cost principles
contained in 2 CFR Part §200, available at the Electronic Code of Federal Regulations
(www.ecfr.gov).
Salaries and Wages
Indicate the project manager and other key personnel by name and title. The project manager must
be an employee or board member of the applicant. Other personnel should be indicated by title
alone. For all positions, indicate salaries and wages, estimated hours or percent of time, and rate of
compensation. The labor rates must identify the direct labor rate separate from the fringe rate or
fringe cost for each position. All labor estimates must be allocated to specific tasks as outlined in the
applicant’s technical project description. Labor rates and proposed hours shall be displayed for each
task.
The budget proposal and narrative should include estimated hours for compliance with reporting
requirements, including the final financial and performance reports. Please see Section F.3. Reporting
Requirements and Distribution information on types and frequency of reports required.
Generally, salaries of administrative and/or clerical personnel will be included as a portion of the
stated indirect costs. If these salaries can be adequately documented as direct costs, they should be
included in this section; however, a justification should be included in the budget narrative.
Section D. Application and Submission Information
19
Within the budget narrative, please provide a certification that the labor rates included in
the budget proposal represent the actual labor rates of the identified personnel and are
consistently applied to Federal and non-Federal activities. If the proposal is selected for
award and the awarding Grants Officer determines that the provided rates fall within Bureau
of Labor Statistic averages for personnel with similar job descriptions, no further
documentation for this item of cost shall be requested during budget negotiations.
Fringe Benefits
Identify the rates/amounts, what costs are included in this category, and the basis of the rate
computations. Federally approved rate agreements are acceptable for compliance with this item.
Travel
Travel related expenses are not eligible for reimbursement under this NOFO and should not be
included within the proposed budget.
Equipment
If equipment will be purchased, itemize all equipment valued at or greater than $5,000. For each
item, identify why it is needed for the completion of the project and how the equipment was priced.
Note: If the value is less than $5,000, the item should be included under materials and supplies.
If equipment is being rented, specify the number of hours and the hourly rate. Local rental rates are
only accepted for equipment being rented or leased.
If the applicant intends to use their own equipment for the purposes of the project, the proposed
usage rates should fall within the equipment usage rates outlined by the United States Army Corps
of Engineers (USACE) within their Construction Equipment Ownership and Operating Expense
Schedule (EP 1110-1-8) at www.publications.usace.army.mil/USACE-Publications/Engineer-
Pamphlets/u43545q/313131302D312D38.
If the proposal is selected for award and the awarding Grants Officer determines that the
proposed rates fall within those outlined within the USACE publication, no further
documentation for this item of cost shall be requested during budget negotiations.
Note: If the equipment will be furnished and installed under a construction contract, the equipment should be included
in the construction contract cost estimate.
Materials and Supplies
Itemize supplies by major category, unit price, quantity, and purpose, such as whether the items are
needed for office use, research, or construction. Identify how these costs were estimated (i.e.,
quotes, past experience, engineering estimates, or other methodology). Note: If the materials/supplies
will be furnished and installed under a contract, the equipment should be identified as a contractual cost in the budget
proposal.
Contractual
Identify all work that will be accomplished by consultants or contractors, including a breakdown of
all tasks to be completed, and a detailed budget estimate of time, rates, supplies, and materials that
will be required for each task. For each proposed contract, identify the procurement method that
Notice of Funding Opportunity No. R21AS00300
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will be used to select the consultant or contractor and the basis for selection. Please note that all
procurements with an anticipated aggregate value that exceeds the Simplified Acquisition Threshold
(currently $10,000) must use a competitive procurement method (see 2 CFR §200.320 – Methods of
procurement to be followed). Only contracts for architectural/engineering services can be awarded using a
qualifications-based procurement method. If a qualifications-based procurement method is used,
profit must be negotiated as a separate element of the contract price. See 2 CFR §200.317 through
§200.326 for additional information regarding procurements, including required contract content.
If the proposal is selected for award and the awarding Grants Officer determines that the
contractual engineering services costs for design engineering and/or construction
management costs within the budget proposal do not exceed 8 percent of total project
construction costs, then no further documentation for this item of cost shall be requested
during budget negotiations.
Third-Party In-Kind Contributions
Identify all work that will be accomplished by third-party contributors, including a breakdown of all
tasks to be completed, and a detailed budget estimate of time, rates, supplies, and materials that will
be required for each task. Third-party in-kind contributions, including contracts, must comply with
all applicable administrative and cost principles criteria, established in 2 CFR Part 200, available at
www.ecfr.gov, and all other requirements of this NOFO.
Environmental and Regulatory Compliance Costs
Prior to awarding financial assistance, Reclamation must first ensure compliance with Federal
environmental and cultural resources laws and other regulations (“environmental compliance”).
Every project funded under this program will have environmental compliance activities undertaken
by Reclamation and the recipient.
Depending on the potential impacts of the project, Reclamation may be able to complete its
compliance activities without additional cost to the recipient. Where environmental or cultural
resources compliance requires significant participation by Reclamation, costs incurred by
Reclamation will be added as a line item to the budget during development of the financial assistance
agreement and cost shared accordingly (i.e., withheld from the Federal award amount). Any costs to
the recipient associated with compliance will be identified during the process of developing a final
project budget for inclusion in the financial assistance agreement.
Other Expenses
Any other expenses not included in the above categories shall be listed in this category, along with a
description of the item and why it is necessary. No profit or fee will be allowed.
Indirect Costs
Indirect costs are costs incurred by the applicant for a common or joint purpose that benefit more
than one activity of the organization and are not readily assignable to the activities specifically
benefitted without undue effort. Costs that are normally treated as indirect costs include, but are not
limited to, administrative salaries and fringe benefits associated with overall financial and
organizational administration, operation and maintenance costs for facilities and equipment, and
payroll and procurement services.
Section D. Application and Submission Information
21
If indirect costs will be incurred, identify the proposed rate, cost base, and proposed amount for
allowable indirect costs based on the applicable cost principles for the applicant’s organization. It is
not acceptable to simply incorporate indirect rates within other direct cost line items.
Any non-Federal entity that does not have a current negotiated (including provisional) rate, except
for those non-Federal entities described in appendix VII to 2 CFR 200, paragraph D.1., may elect to
charge a de minimis rate of 10% of modified total direct costs (MTDC) which may be used
indefinitely. For further information on MTDC, refer to 2 CFR §200.68 available at www.ecfr.gov.
If the applicant does not have a federally approved indirect cost rate agreement and is proposing a
rate greater than the de minimis 10 percent rate, include the computational basis for the indirect
expense pool and corresponding allocation base for each rate. Information on “Preparing and
Submitting Indirect Cost Proposals” is available from the Department’s Interior Business Center,
and Indirect Cost Services, at www.doi.gov/ibc/services/finance/indirect-cost- services.
D.2.2.6. Environmental and Cultural Resources Compliance
Please answer the questions from Section H.1. Environmental and Cultural Resource Considerations in this
section.
D.2.2.7. Required Permits or Approvals
Applicants must state in the application whether any permits or approvals are required and explain
the plan for obtaining such permits or approvals.
Note that improvements to Federal facilities that are implemented through any project awarded
funding through this NOFO must comply with additional requirements. The Federal government
will continue to hold title to the Federal facility and any improvement that is integral to the existing
operations of that facility. Please see P.L. 111-11, Section 9504(a)(3)(B). Reclamation may also
require additional reviews and approvals prior to award to ensure that any necessary easements, land
use authorizations, or special permits can be approved consistent with the requirements of 43 CFR
Section 429, and that the development will not impact or impair project operations or efficiency.
D.2.2.8. Official Resolution
Include an official resolution adopted by the applicant’s board of directors or governing body, or,
for State government entities, an official authorized to commit the applicant to the financial and
legal obligations associated with receipt of a financial assistance award under this NOFO, verifying:
• The identity of the official with legal authority to enter into an agreement
• The board of directors, governing body, or appropriate official who has reviewed and
supports the application submitted
• The capability of the applicant to provide the amount of funding and/or in- kind
contributions specified in the funding plan
• That the applicant will work with Reclamation to meet established deadlines for entering
into a grant or cooperative agreement
Notice of Funding Opportunity No. R21AS00300
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An official resolution meeting the requirements set forth above is mandatory. If the applicant
is unable to submit the official resolution by the application deadline because of the timing of board
meetings or other justifiable reasons, the official resolution may be submitted to SHA-DRO-
FAFOA@usbr.gov up to 30 days after the application deadline.
D.3. Unique Entity Identifier and System for Award
Management
All applicants (unless the applicant has an exception approved by Reclamation under 2 CFR
§25.110[d]) are required to:
(i) Be registered in the System for Award Management (SAM) before submitting its
application;
(ii) Provide a valid unique entity identifier in its application; and
(iii) Continue to maintain an active SAM registration with current information at all times
during which it has an active Federal award or an application or plan under consideration
by a Federal awarding agency.
Meeting the requirements set forth above is mandatory. If the applicant is unable to complete
registration by the application deadline, the unique entity identifier must be obtained, and SAM
registration must be initiated within 30 days after the application deadline in order to be considered
for selection and award. You can find additional information on how to complete a SAM
registration here: sam.gov/SAM/pages/public/loginFAQ.jsf.
D.4. Submission Date and Time
Thursday, March 18, 2021, 4:00 p.m. Mountain Daylight Time (MDT)
Applications received after the application deadline will not be considered unless it can be
determined that the delay was caused by Reclamation mishandling or technical issues with the
Grants.gov application system. Please note that difficulties related to an applicant’s Grants.gov
profile (e.g., incorrect organizational representative), uploading documents to Grants.gov, or an
applicant’s SAM registration are not considered technical issues with the Grants.gov system.
Please note that any application submitted for funding under this NOFO may be subjected to a Freedom of
Information Act (FOIA)request (5 U.S.C. Section 552, as amended by P.L. No. 110-175), and as a result, may
be made publicly available. Following awards of funding, Reclamation will post all successful applications on the
Reclamation website, www.usbr.gov/watersmart/swep/selectedapps.html, after conducting any redactions
determined necessary by Reclamation, in consultation with the recipient.
Section D. Application and Submission Information
23
D.4.1. Application Delivery Instructions
The applications may be submitted electronically through Grants.gov (www.grants.gov) or a hard
copy may be submitted to either one of the following addresses. Under no circumstances will
applications received through any other method (such as email or fax) be considered eligible for
award.
By mail or USPS overnight services:
Bureau of Reclamation
Financial Assistance Support Section
Attn: Mr. Matthew Reichert
P.O. Box 25007, MS 84-27133
Denver, CO 80225
All other express delivery:
Bureau of Reclamation mail services
Attn: Mr. Matthew Reichert
Denver Federal Center
Bldg. 67, Rm. 152
6th Avenue and Kipling Street
Denver, CO 80225
By courier services:
Bureau of Reclamation
Attn: Mr. Matthew Reichert
Denver Federal Center
Bldg. 67, Rm. 152
6th Avenue and Kipling Street
Denver, CO 80225
D.4.2. Instructions for Submission of Project Application
Each applicant should submit an application in accordance with the instructions contained in this
section.
D.4.2.1. Applications Submitted by Mail, Express Delivery or Courier Services
Please follow these instructions to submit your application by mail, express delivery, or courier
services.
• Applicants should submit one copy of all application documents for hardcopy submissions.
Only use a binder clip for documents submitted. Do not staple or otherwise bind
application documents.
• Hard copy applications may be submitted by mail, express delivery, or courier services to the
addresses identified in this NOFO.
• Materials arriving separately will not be included in the application package and may result in
the application being rejected or not funded. This does not apply to funding commitment
letters or official resolutions.
Notice of Funding Opportunity No. R21AS00300
24
• Faxed and emailed copies of application documents will not be accepted.
• Do not include a cover letter or company literature/brochure with the application. All
pertinent information must be included in the application package.
D.4.2.2. Applications Submitted Electronically
• If the applicant chooses to submit an electronic application, it must be submitted through
Grants.gov (www.grants.gov). Reclamation encourages applicants to submit their
applications for funding electronically through the URL: www.grants.gov/applicants/apply-
for-grants.html. Applicant resource documents and a full set of instructions for registering
with Grants.gov (www.grants.gov) and completing and submitting applications online are
available at: www.grants.gov/applicants/apply-for-grants.html.
• Please note that submission of an application electronically requires prior registration
through Grants.gov, which may take 7 to 21 days. Please see registration instructions at
www.grants.gov/applicants/apply-for-grants.html. In addition, please note that the
Grants.gov system only accepts applications submitted by individuals that are
registered and active in SAM as both a user and an Authorized Organizational
Representative.
• Applicants have experienced significant delays when attempting to submit applications
through Grants.gov. If you plan to submit your application through Grants.gov you are
encouraged to submit your application several days prior to the application deadline. If you
are a properly registered Grants.gov applicant and encounter problems with the Grants.gov
application submission process, you must contact the Grants.gov Help Desk to obtain a case
number. This case number will provide evidence of your attempt to submit an application
prior to the submission deadline.
Regardless of the delivery method used, you must ensure that your proposal arrives by the
date and time deadline stated in this NOFO. Applications received after this date and time
due to weather or express delivery/courier performance will not be considered for award.
Late applications will not be considered unless it is determined that the delay was caused by
Reclamation mishandling or technical issues with the Grants.gov application system. Please
note that difficulties related to an applicant’s Grants.gov profile (e.g., incorrect organizational
representative), the upload of documents to Grants.gov, or an applicant’s SAM registration are not
considered technical issues with the Grants.gov system.
D.4.2.3. Acknowledgement of Application Receipt.
If an application is submitted by mail, express delivery, or courier, Reclamation will notify you via
email that your application was received.
If an application is submitted through Grants.gov, you will receive an email acknowledging receipt
of the application from Grants.gov. In addition, Reclamation will notify you in writing whether your
application was successfully downloaded from Grants.gov.
Section D. Application and Submission Information
25
D.5. Intergovernmental Review
This NOFO is not subject to Executive Order 12372, “Intergovernmental Review of Federal
Programs”.
D.6. Automated Standard Application for Payments
Registration
All applicants must also be registered with and willing to process all payments through the
Department of Treasury Automated Standard Application for Payments (ASAP) system prior to
award. All recipients with active financial assistance agreements with Reclamation must be enrolled
in ASAP under the appropriate Agency Location Code(s) and the Data Universal Number System
(DUNS) Number prior to the award of funds. Recipients with multiple DUNS numbers, must
separately enroll within ASAP for each unique DUNS Number and/or Agency. For all the
information on the enrollment process for recipients, including requesting the enrollment initiation
form, contact the enrollment mailbox at sha-dro-ASAP_ENR@usbr.gov.
Note that if your entity is currently enrolled in the ASAP system with an agency other than
Reclamation, you must enroll specifically with Reclamation in order to process payments.
Section E. Application Review Information
27
Section E. Application Review Information
E.1. Technical Proposal: Evaluation Criteria
The evaluation criteria portion should be addressed in the technical proposal section of the
application. Applications should thoroughly address each criterion and any subcriterion in the order
presented below. Applications will be evaluated against the evaluation criteria listed below. If
the work described in your application is a phase of a larger project, only discuss the benefits that
will result directly from the work discussed in the technical project description and that is reflected
in the budget, not the larger project.
Evaluation Criteria Scoring Summary Points:
A. Project Benefits 35
B. Planning Efforts Supporting the Project 35
C. Project Implementation 10
D. Nexus to Reclamation 10
Total 90
It is suggested that applicants copy and paste the evaluation criteria and sub-criteria
immediately below into their applications to ensure that all necessary information is
adequately addressed.
E.1.1. Evaluation Criterion A—Project Benefits (35 points)
Up to 35 points may be awarded based upon evaluation of the benefits that are expected to result
from implementing the proposed project. This criterion considers a variety of project benefits,
including the significance of the anticipated water management benefits and the public benefits of
the project. This criterion prioritizes projects that modernize existing infrastructure in order to
address water reliability concerns, including making water available for multiple beneficial uses and
resolving water related conflict in the region.
• Describe the expected benefits and outcomes of implementing the proposed project.
o What are the benefits to the applicant’s water supply delivery system?
o If other benefits are expected explain those as well. Consider the following:
Extent to which the proposed project improves overall water supply reliability
The expected geographic scope benefits from the proposed project (e.g., local,
sub-basin, basin)
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Extent to which the proposed project will increase collaboration and information
sharing among water managers in the region
Any anticipated positive impacts/benefits to local sectors and economies
(e.g., agriculture, environment, recreation, tourism)
Extent to which the project will complement work done in coordination with NRCS
in the area (e.g., with a direct connection to the district’s water supply). Describe any
on-farm efficiency work that is currently being completed or is anticipated to be
completed in the future using NRCS assistance through EQIP or other programs.
Please note, on-farm improvements themselves are not eligible activities for funding under
this NOFO. This criterion is intended to focus on how the WaterSMART Grant project will
complement ongoing or future on-farm improvements. NRCS will have a separate
application process for the on-farm components of selected projects that may be undertaken
in the future, separate of the WaterSMART Grant project.
E.1.2. Evaluation Criterion B—Planning Efforts Supporting the Project (35 points)
Up to 35 points may be awarded based on the extent to which the proposed on-the-ground project
is supported by an applicant’s existing water management plan, water conservation plan, System
Optimization Review, or identified as part of another planning effort led by the applicant. This
criterion prioritizes projects that are identified through local planning efforts and meet local needs.
Describe how your project is supported by an existing planning effort.
• Does the proposed project implement a goal or address a need or problem identified in the
existing planning effort?
• Explain how the proposed project has been determined as a priority in the existing planning
effort as opposed to other potential projects/measures.
E.1.3. Evaluation Criterion C—Project Implementation (10 points)
Up to 10 points may be awarded based upon the extent to which the applicant is capable of
proceeding with the proposed project upon entering into a financial assistance agreement.
Applicants that describe a detailed plan (e.g., estimated project schedule that shows the stages and
duration of the proposed work, including major tasks, milestones, and dates) will receive the most
points under this criterion.
• Describe the implementation plan for the proposed project. Please include an estimated
project schedule that shows the stages and duration of the proposed work, including major
tasks, milestones, and dates.
• Describe any permits that will be required, along with the process for obtaining such
permits.
Section E. Application Review Information
29
• Identify and describe any engineering or design work performed specifically in support of
the proposed project.
• Describe any new policies or administrative actions required to implement the project.
• Describe the timeline for completion of environmental and cultural resource compliance.
Was the timeline for completion of environmental and cultural resource compliance
discussed with the local Reclamation office?
E.1.4. Evaluation Criterion D— Nexus to Reclamation (10 points)
Up to 10 points may be awarded based on the extent that the proposal demonstrates a nexus
between the proposed project and a Reclamation project or activity. Describe the nexus between the
proposed project and a Reclamation project or activity, including:
• Is the proposed project connected to a Reclamation project or activity?
If so, how? Please consider the following:
o Does the applicant receive Reclamation project water?
o Is the project on Reclamation project lands or involving Reclamation facilities?
o Is the project in the same basin as a Reclamation project or activity?
o Will the proposed work contribute water to a basin where a Reclamation project is
located?
• Will the project benefit any tribe(s)?
E.2. Review and Selection Process
The Federal government reserves the right to reject any and all applications that do not meet the
requirements or objectives of this NOFO. Awards will be made for projects most advantageous to
the Federal Government. The evaluation process will be comprised of the steps described in the
following subsections.
E.2.1. Initial Screening
All application packages will be screened to ensure that:
• The applicant meets the eligibility requirements stated in this NOFO.
• The applicant meets the unique entity identifier and SAM registration requirements stated in
this NOFO (this may be completed up to 30 days after the application deadline).
• The application meets the content requirements of the NOFO package, including
submission of a technical proposal, including responses to the evaluation criteria, a funding
plan, budget proposal, and budget narrative.
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• The application contains a properly executed SF-424, Application for Financial Assistance
and form SF-424B, Assurances Non-Construction Programs, or SF-424D, Assurances
Construction Programs and a completed SF-424A, Budget Information Non-Construction
Programs or SF-424C, Budget Information Construction Programs.
• The application includes an official resolution, adopted by the applicant’s board of directors,
governing body, or appropriate authorized official (this may be submitted up to 30 days after
the application deadline).
• The application and funding plan meet or exceeds the minimum non-Federal cost-share
requirements identified in this NOFO.
Reclamation reserves the right to remove an application from funding consideration if it does not
pass all Initial Screening criteria listed above. An applicant that has submitted an application that is
determined to be ineligible for funding will be notified along with other applicants, or sooner, if
possible.
E.2.2. Application Review Committee
Evaluation criteria will comprise the total evaluation weight as stated in the Section E.1 Evaluation
Criteria. Application Review Information. Applications will be scored against the evaluation criteria
by an ARC, made up of experts in relevant disciplines selected from across Reclamation. The ARC
will also review the application to ensure that the project meets the description of eligible projects
and meets the objective of this NOFO. The ARC also has the discretion to determine whether a
project is a Small-Scale Water Efficiency Project. If the ARC determines that the project is too large
to be considered a small-scale project, the project may be determined ineligible under this NOFO.
During ARC review, Reclamation may contact applicants to request clarifications to the information
provided, if necessary.
E.2.3. Red-Flag Review
Following the results of the ARC review, Reclamation offices will review the top- ranking
applications and will identify any reasons why a proposed project would not be feasible or otherwise
advisable, including environmental or cultural resources compliance issues, permitting issues, legal
issues, or financial position. Positive or negative past performance by the applicant and any partners
in previous working relationships with Reclamation may be considered, including whether the
applicant is making significant progress toward the completion of outstanding financial assistance
agreements and whether the applicant is in compliance with all reporting requirements associated
with previously funded projects.
In addition, during this review, Reclamation will address any specific concerns or questions raised by
members of the ARC, conduct a preliminary budget review, and evaluate the applicant’s ability to
meet cost share as required.
Section E. Application Review Information
31
E.2.4. Managerial Review
Reclamation management will prioritize projects to ensure the total amount of all awards does not
exceed available funding levels. Management will also ensure that all projects meet the scope,
priorities, requirements, and objectives of this NOFO. Management may also prioritize projects to
ensure that multiple project types are represented. After completion of the Managerial Review,
Reclamation will notify applicants whose proposals have been selected for award consideration.
E.2.5. Pre-Award Clearances and Approvals
The following pre-award clearances and approvals must be obtained before an award of funding is
made. If the results of all pre-award reviews and clearances are satisfactory, an award of funding will
be made once the agreement is finalized (approximately one to three months from the date of initial
selection). If the results of pre-award reviews and clearances are unsatisfactory, consideration of
funding for the project may be withdrawn.
E.2.5.1. Environmental Review
Reclamation will forward all proposals to the appropriate Reclamation Regional or Area Office for
completion of environmental compliance. To the extent possible, environmental compliance will be
completed before a financial assistance agreement is signed by the parties. However, in most cases,
the award will be made contingent on completion of environmental compliance. The financial
assistance agreement will describe how compliance will be carried out and how the costs will be
paid. Ground-disturbing activities, including any construction or installation activities, may not occur
until environmental compliance is complete and a notice to proceed is issued.
Even in cases where environmental compliance work has been completed previously or is being
completed by another Federal agency, Reclamation must still review and adopt such environmental
compliance and issue a notice to proceed before ground disturbing activities may be initiated.
E.2.5.2. Budget Analysis and Business Evaluation
A Reclamation Grants Officer will also conduct a detailed budget analysis and complete a business
evaluation and responsibility determination. During this evaluation, the Grants Officer will consider
several factors that are important, but not quantified, such as:
• Allowability, allocability, and reasonableness of proposed costs
• Financial strength and stability of the applicant
• Past performance, including satisfactory compliance with all terms and conditions of
previous awards, such as environmental compliance issues, reporting requirements, proper
procurement of supplies and services, and audit compliance
• Adequacy of personnel practices, procurement procedures, and accounting policies and
procedures, as established by applicable Office of Management and Budget circulars
Notice of Funding Opportunity No. R21AS00300
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E.4. Anticipated Announcement and Federal Award Date
Reclamation expects to contact potential award recipients and unsuccessful applicants in summer
2021 subject to the timing and amount of final FY 2021 appropriations. Financial assistance
agreements will be awarded to applicants that successfully pass all pre-award reviews and clearances.
Award recipients will be contacted individually to discuss the time frame for the completion of their
agreement.
Section F. Federal Award Information
33
Section F. Federal Award Administration
Information
F.1. Federal Award Notices
Successful applicants will receive by electronic mail, a notice of selection signed by a Reclamation
Grants Officer. This notice is not an authorization to begin performance.
F.2. Administrative and National Policy Requirements
F.2.1. Environmental and Cultural Resources Compliance
All projects being considered for award funding will require compliance with NEPA before any
ground-disturbing activity may begin. Compliance with all applicable state, Federal and local
environmental, cultural, and paleontological resource protection laws and regulations is also
required. These may include, but are not limited to, the Clean Water Act (CWA), Endangered
Species Act (ESA), National Historic Preservation Act (NHPA), consultation with potentially
affected tribes, and consultation with the State Historic Preservation Office.
Reclamation will be the lead Federal agency for NEPA compliance and will be responsible for
evaluating technical information and ensuring that natural resources, cultural, and socioeconomic
concerns are appropriately addressed. As the lead agency, Reclamation is solely responsible for
determining the appropriate level of NEPA compliance. Further, Reclamation is responsible to
ensure that findings under NEPA, and consultations, as appropriate, will support Reclamation’s
decision on whether to fund a project.
Depending on the potential impacts of the project, Reclamation may be able to complete its
compliance activities without additional cost to the recipient. Where environmental or cultural
resources compliance requires significant participation by Reclamation, costs anticipated to be
incurred by Reclamation will be added as a line item to the budget during development of the
financial assistance agreement and cost shared accordingly. Any costs to the recipient associated with
compliance will be identified during the process of developing a final project budget for inclusion in
the financial assistance agreement.
Note, if mitigation is required to lessen environmental impacts, the applicant may, at Reclamation’s discretion, be
required to report on progress and completion of these commitments. Reclamation will coordinate with the applicant to
establish reporting requirements and intervals accordingly.
Notice of Funding Opportunity No. R21AS00300
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Under no circumstances may an applicant begin any ground -disturbing activities
(e.g., grading, clearing, and other preliminary activities) on a project before environmental
and cultural resources compliance is complete and a Reclamation Grants Officer provides
written notification that all such clea rances have been obtained. This pertains to all
components of the proposed project, including those that are part of the applicant’s non-
Federal cost share. An applicant that proceeds before environmental and cultural resources
compliance is complete may risk forfeiting Reclamation funding under this NOFO.
F.2.2. Approvals and Permits
Recipients shall adhere to Federal, State, territorial, Tribal, and local laws, regulations, and codes, as
applicable, and shall obtain all required approvals and permits. Recipients shall also coordinate and
obtain approvals from site owners and operators.
F.2.3. Requirements for Agricultural Operations under P.L. 111-11, Section 9504(a)(3)(B)
In accordance with Section 9504(a)(3)(B) of P.L. 111-11, as amended, grants and cooperative
agreements under this authority will not be awarded for an improvement to conserve irrigation
water unless the applicant agrees to both of the following conditions (see exception for Tribes
below):
(1) Not to use any associated water savings to increase the total irrigated acreage of the eligible
applicant
(2) Not to otherwise increase the consumptive use of water in the operation of the eligible
applicant, as determined pursuant to the law of the State in which the operation of the
eligible applicant is located
Exception for tribes: requirements regarding irrigated acreage and consumptive use applicable to
tribes are described in P.L. 116-9, Section 8501.
F.2.4. Title to Improvements P.L. 111-11, Section 9504(a)(3)(D)
If the activities funded through an agreement awarded under this NOFO result in a modification to
a portion of a federally owned facility that is integral to the existing operations of that facility, the
Federal government shall continue to hold title to the facility and the improvements thereto. Title to
improvements, P.L. 111-11, Section 9504(a)(3)(D) that are not integral to existing water delivery
operations shall reside with the project sponsor.
F.2.5. Operation and Maintenance Costs under P.L. 111-11, Section 9504(a)(3)(E)(iv)
The non-Federal share of the costs for operation and maintenance of any infrastructure
improvement funded through an agreement awarded under this NOFO shall be 100 percent.
Section F. Federal Award Information
35
F.2.6. Liability under P.L. 111-11, Section 9504(a)(3)(F)
F.2.6.1. In General
Except as provided under Chapter 171 of Title 28, U.S.C. (commonly known as the Federal Tort
Claims Act), the United States shall not be liable for monetary damages of any kind for any injury
arising out of an act, omission, or occurrence that arises in relation to any facility created or
improved through an agreement awarded under this NOFO, the title of which is not held by the
United States.
F.2.6.2. Tort Claims Act
Nothing in this section increases the liability of the United States beyond that provided in Federal
Tort Claims Act.
F.2.7. Intangible Property (2 CFR §200.315)
Title to intangible property acquired under a Federal award vests upon acquisition in the non-
Federal entity (see 2 CFR §200.59 Intangible Property). The non-Federal entity must use that
property for the originally authorized purpose and must not encumber the property without
approval of the Federal awarding agency. When no longer needed for the originally authorized
purpose, disposition of the intangible property must occur in accordance with the provisions in
2 CFR §200.313(e) Equipment.
The non-Federal entity may copyright any work that is subject to copyright and was developed, or
for which ownership was acquired, under a Federal award. The Federal awarding agency reserves a
royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for
Federal purposes, and to authorize others to do so.
The non-Federal entity is subject to applicable regulations governing patents and inventions,
including government wide regulations issued by the Department of Commerce at 37 CFR Part 401,
“Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under
Government Awards, Contracts and Cooperative Agreements.”
The Federal government has the right to:
(1) obtain, reproduce, publish, or otherwise use the data produced under a Federal award and
(2) authorize others to receive, reproduce, publish, or otherwise use such data for Federal
purposes.
F.2.8. Freedom of Information Act
In response to a Freedom of Information Act (FOIA ) request for research data relating to
published research findings produced under a Federal award that were used by the Federal
government in developing an agency action that has the force and effect of law, the Federal
awarding agency must request, and the non-Federal entity must provide, within a reasonable time,
the research data so that they can be made available to the public through the procedures established
under the FOIA. If the Federal awarding agency obtains the research data solely in response to a
FOIA request, the Federal awarding agency may charge the requester a reasonable fee equaling the
full incremental cost of obtaining the research data. This fee should reflect costs incurred by the
Notice of Funding Opportunity No. R21AS00300
36
Federal agency and the non-Federal entity. This fee is in addition to any fees the Federal awarding
agency may assess under the FOIA (5 USC 552[a][4][A]).
Published research findings means when:
(1) Research findings are published in a peer-reviewed scientific or technical journal; or
(2) A Federal agency publicly and officially cites the research findings in support of an agency
action that has the force and effect of law. “Used by the Federal government in developing
an agency action that has the force and effect of law” is defined as when an agency publicly
and officially cites the research findings in support of an agency action that has the force
and effect of law.
Research data means the recorded factual material commonly accepted in the scientific community
as necessary to validate research findings, but not any of the following: preliminary analyses, drafts
of scientific papers, plans for future research, peer reviews, or communications with colleagues. This
“recorded” material excludes physical objects (e.g., laboratory samples). Research data also does not
include:
(1) Trade secrets, commercial information, materials necessary to be held confidential by a
researcher until they are published, or similar information which is protected under law and
(2) Personnel and medical information and similar information the disclosure of which would
constitute a clearly unwarranted invasion of personal privacy, such as information that
could be used to identify a particular person in a research study.
F.2.9. National Defense Authorization Act
Applicants may not use funding awarded under this NOFO to purchase certain telecommunication
and video surveillance services or equipment in alignment with section 889 of the National Defense
Authorization Act of 2019 (P.L. No. 115-232) (2 CFR §200.216).
F.3. Reporting—Requirements and Distribution
If the applicant is awarded an agreement as a result of this NOFO, the applicant will be required to
submit the following reports during the term of the agreement. Recipients will also be required to
have a system in place to comply with these reporting requirements (see 2 CFR §170.210 for
additional information).
F.3.1. Financial Reports
Recipients will be required to submit a fully completed form SF-425 Federal Financial Report on at
least an annual basis and with the final performance report. The SF-425 must be signed by a person
legally authorized to obligate the recipient.
F.3.2. Interim Performance Reports
The specific terms and conditions pertaining to the reporting requirements will be included in the
financial assistance agreement.
Section F. Federal Award Information
37
Interim performance reports submitted on at least an annual basis, that include the following
information:
• A comparison of actual accomplishments to the milestones established by the financial
assistance agreement for the period
• The reasons why established milestones were not met, if applicable
• The status of milestones from the previous reporting period that were not met, if applicable
• Whether the project is on schedule and within the original cost estimate
• Any additional pertinent information or issues related to the status of the project
F.3.3. Final Performance Reports
Recipients will be required to submit a final performance report encompassing the entire period of
performance. The final performance report must include, but is not limited to, the following
information:
• Whether the project objectives and goals were met
• Discussion of the benefits achieved by the project
• Photographs documenting the project are also appreciated
Note: Reclamation may print photos with appropriate credit to the applicant. Also, final reports are
public documents and will be made available on Reclamation’s website.
F.4. Conflicts of Interest
F.4.1. Applicability
This section intends to ensure that non-Federal entities and their employees take appropriate steps
to avoid conflicts of interest in their responsibilities under or with respect to Federal financial
assistance agreements. In the procurement of supplies, equipment, construction, and services by
recipients and by subrecipients, the conflict of interest provisions in 2 CFR 200.318 apply.
F.4.2. Requirements
Non-Federal entities must avoid prohibited conflicts of interest, including any significant financial
interests that could cause a reasonable person to question the recipient's ability to provide impartial,
technically sound, and objective performance under or with respect to a Federal financial assistance
agreement.
In addition to any other prohibitions that may apply with respect to conflicts of interest, no key
official of an actual or proposed recipient or subrecipient, who is substantially involved in the
proposal or project, may have been a former Federal employee who, within the last year, participated
personally and substantially in the evaluation, award, or administration of an award with respect to
that recipient or subrecipient or in development of the requirement leading to the funding
announcement.
Notice of Funding Opportunity No. R21AS00300
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No actual or prospective recipient or subrecipient may solicit, obtain, or use non-public information
regarding the evaluation, award, or administration of an award to that recipient or subrecipient or
the development of a Federal financial assistance opportunity that may be of competitive interest to
that recipient or subrecipient.
F.4.3. Notification
Non-Federal entities, including applicants for financial assistance awards, must disclose in writing
any conflict of interest to the Department’s awarding agency or pass-through entity in accordance
with 2 CFR 200.112, Conflicts of Interest. Recipients must establish internal controls that include, at
a minimum, procedures to identify, disclose, and mitigate or eliminate identified conflicts of interest.
The recipient is responsible for notifying the Financial Assistance Officer in writing of any conflicts
of interest that may arise during the life of the award, including those that have been reported by
subrecipients.
F.4.4. Restrictions on Lobbying
Non-Federal entities are strictly prohibited from using funds under this grant or cooperative
agreement for lobbying activities and must provide the required certifications and disclosures
pursuant to 43 CFR Part 18 and 31 U.S.C. 13 52.
F.4.5. Review Procedures
The Financial Assistance Officer will examine each conflict of interest disclosure on the basis of its
particular facts and the nature of the proposed grant or cooperative agreement and will determine
whether a significant potential conflict exists and, if it does, develop an appropriate means for
resolving it.
F.4.6. Enforcement
Failure to resolve conflicts of interest in a manner that satisfies the Government may be cause for
termination of the award. Failure to make required disclosures may result in any of the remedies
described in 2 CFR 200.338, Remedies for Noncompliance, including suspension or debarment (see
also 2 CFR Part 180).
F.5. Data Availability
F.5.1. Applicability
The Department is committed to basing its decisions on the best available science and providing the
American people with enough information to thoughtfully and substantively evaluate the data,
methodology, and analysis used by the Department to inform its decisions.
F.5.2. Use of Data
The regulations at 2 CFR 200.315 apply to data produced under a Federal award, including the
provision that the Federal Government has the right to obtain, reproduce, publish, or otherwise use
the data produced under a Federal award as well as authorize others to receive, reproduce, publish,
or otherwise use such data for Federal purposes.
Section F. Federal Award Information
39
F.5.3. Availability of Data
The recipient shall make the data produced under this award and any subaward(s) available to the
Government for public release, consistent with applicable law, to allow meaningful third-party
evaluation and reproduction of the following:
• the scientific data relied upon;
• the analysis relied upon; and
• the methodology, including models, used to gather and analyze data.
F.6. Releasing Applications
Following awards of funding, Reclamation may post all successful applications on the Reclamation
website after conducting any redactions determined necessary by Reclamation, in consultation with
the recipient.
Section G. Agency Contacts
41
Section G. Agency Contacts
There will be no pre-application conference. Organizations or individuals interested in submitting
applications in response to this NOFO may direct questions to the Reclamation personnel identified
below.
G.1. Reclamation Financial Assistance Contact
Questions regarding application and submission information and award administration may be
submitted to the attention of Mr. Matthew Reichert, Grants Management Specialist, as follows:
By mail: Bureau of Reclamation
Financial Assistance Support Section
Attn: Mr. Matthew Reichert
P.O. Box 25007, MS 84-27133
Denver, CO 80225
By email: SHA-DRO-FAFOA@usbr.gov
By phone: 303-445-3865
OR
By mail: Bureau of Reclamation
Financial Assistance Support Section
Attn: Mr. Ned Weakland
P.O. Box 25007, MS 84-27133
Denver, CO 80225
By email: SHA-DRO-FAFOA@usbr.gov
By phone: 303-445-3757
Notice of Funding Opportunity No. R21AS00300
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G.2. Reclamation Program Coordinator Contact
Questions regarding applicant and project eligibility and application review may be submitted to the
attention of Ms. Robin Graber, Program Analyst, as follows:
By mail: Bureau of Reclamation
Water Resources and Planning Division
Attn: Ms. Robin Graber
P.O. Box 25007, MS 84-51000
Denver, CO 80225
By email: rgraber@usbr.gov
By phone: 303-445-2764
Section H. Other Information
43
Section H. Other Information
The following is a brief overview of NEPA, NHPA, and ESA. This information is only relevant to
proposals that include measurement, monitoring and field work. While these statutes are not the
only environmental laws that may apply, they are the Federal laws that most frequently do apply.
Compliance with all applicable environmental laws will be initiated by Reclamation concurrently,
immediately following the initial recommendation to award a financial assistance agreement under
this NOFO. The descriptions below are intended to provide you with information about the
environmental compliance issues that may apply to your projects and to help you budget
appropriately for the associated compliance costs.
H.1. Environmental and Cultural Resource Considerations
To allow Reclamation to assess the probable environmental and cultural resources impacts and costs
associated with each application, all applicants should consider the following list of questions
focusing on the NEPA, NHPA, and ESA requirements. Please answer the following questions to
the best of your knowledge. If any question is not applicable to the project, please explain why.
The application should include the answers to:
• Will the proposed project impact the surrounding environment (e.g., soil [dust], air, water
[quality and quantity], animal habitat)? Please briefly describe all earth-disturbing work and
any work that will affect the air, water, or animal habitat in the project area. Please also
explain the impacts of such work on the surrounding environment and any steps that could
be taken to minimize the impacts.
• Are you aware of any species listed or proposed to be listed as a Federal threatened or
endangered species, or designated critical habitat in the project area? If so, would they be
affected by any activities associated with the proposed project?
• Are there wetlands or other surface waters inside the project boundaries that potentially fall
under CWA jurisdiction as “Waters of the United States?” If so, please describe and estimate
any impacts the proposed project may have.
• When was the water delivery system constructed?
• Will the proposed project result in any modification of or effects to, individual features of an
irrigation system (e.g., headgates, canals, or flumes)? If so, state when those features were
constructed and describe the nature and timing of any extensive alterations or modifications
to those features completed previously.
Notice of Funding Opportunity No. R21AS00300
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• Are any buildings, structures, or features in the irrigation district listed or eligible for listing
on the National Register of Historic Places? A cultural resources specialist at your local
Reclamation office or the State Historic Preservation Office can assist in answering this
question.
• Are there any known archeological sites in the proposed project area?
• Will the proposed project have a disproportionately high and adverse effect on low income
or minority populations?
• Will the proposed project limit access to and ceremonial use of Indian sacred sites or result
in other impacts on tribal lands?
• Will the proposed project contribute to the introduction, continued existence, or spread of
noxious weeds or non-native invasive species known to occur in the area?
H.2. Background on Federal Environmental and Cultural
Resource Laws
H.2.1. National Environmental Policy Act
NEPA requires Federal agencies such as Reclamation to evaluate, during the decision-making
process, the potential environmental effects of a proposed action and any reasonable mitigation
measures. Before Reclamation can make a decision to fund an award under this NOFO,
Reclamation must comply with NEPA. Compliance with NEPA can be accomplished in several
ways, depending upon the degree and significance of environmental impacts associated with the
proposal:
Some projects may fit within a recognized Categorical Exclusion (CE) to NEPA (i.e., one of the
established categories of activities that generally do not have significant impacts on the
environment). If a project fits within a CE, no further NEPA compliance measures are necessary.
Use of a CE can involve simple identification of an applicable Department CE or documentation
of a Reclamation CE using a Categorical Exclusion Checklist (CEC). If a CE is being
considered, Reclamation will determine the applicability of the CE and whether extraordinary
circumstances (i.e., reasons that the CE cannot be applied) exist. That process can take anywhere
from 1 day to about 30 days, depending upon the specific situation.
If the project does not fit within a CE, compliance with NEPA might require preparation of an
EA/Finding of No Significant Impact (FONSI). Generally, where no CE applies but there are
not believed to be any significant impacts associated with the proposed action, an EA will be
required. The EA is used to determine whether any potentially significant effects exist (which would
trigger the further step of an Environmental Impact Statement (EIS), below). If no potentially
significant effects are identified, the EA process ends with the preparation of a FONSI. The
EA/FONSI process is more detailed than the CE/CEC process and can take weeks or even months
to complete. Consultation with other agencies and public notification are part of the EA process.
Section H. Other Information
45
The most detailed form of NEPA compliance, where a proposed project has potentially significant
environmental effects, is completion of an EIS and Record of Decision. An EIS requires months
or years to complete, and the process includes considerable public involvement, including
mandatory public reviews of draft documents. It is not anticipated that projects proposed under this
program will require completion of an EIS.
During the NEPA process, potential impacts of a project are evaluated in context and in terms of
intensity (e.g., will the proposed action affect the only native prairie in the county? Will the proposed
action reduce water supplied to a wetland by 1 percent? or 95 percent?). The best source of
information concerning the potentially significant issues in a project area is the local Reclamation
staff that has experience in evaluating effects in context and by intensity.
Reclamation has the sole discretion to determine what level of environmental NEPA compliance is
required. If another Federal agency is involved, Reclamation will coordinate to determine the
appropriate level of compliance. You are encouraged to contact your regional or area Reclamation
office. See www.usbr.gov/main/offices.html with questions regarding NEPA compliance issues.
You may also contact the Program Coordinator for further information (see Section G. Agency
Contacts).
H.2.2. National Historic Preservation Act
To comply with Section 106 of the NHPA, Reclamation must consider whether a proposed project
has the potential to cause effects to historic properties, before it can complete an award under
this NOFO. Historic properties are cultural resources (historic or prehistoric districts, sites,
buildings, structures, or objects) that qualify for inclusion in the National Register of Historic Places.
In some cases, water delivery infrastructure that is over 50 years old can be considered a historic
property that is subject to review.
If a proposal is selected for initial award, the recipient will work with Reclamation to complete the
Section 106 process. Compliance can be accomplished in several ways, depending on how complex
the issues are, including:
• If Reclamation determines that the proposed project does not have the potential to cause
effects to historic properties, then Reclamation will document its findings and the Section
106 process will be concluded. This can take anywhere from a couple of days to one month.
• If Reclamation determines that the proposed project could have effects on historic
properties, a multi-step process, involving consultation with the State Historic Preservation
Officer and other entities, will follow. Depending on the nature of the project and impacts
to cultural resources, consultation can be complex and time consuming. The process
includes:
o A determination as to whether additional information is necessary.
o Evaluation of the significance of identified cultural resources.
o Assessment of the effect of the project on historic properties.
o A determination as to whether the project would have an adverse effect and evaluation
of alternatives or modifications to avoid, minimize, or mitigate the effects.
Notice of Funding Opportunity No. R21AS00300
46
o A Memorandum of Agreement is then used to record and implement any necessary
measures. At a minimum, completion of the multi-step Section 106 process takes about
two months.
• Among the types of historic properties that might be affected by projects proposed under
this NOFO are historic irrigation systems and archaeological sites. An irrigation system
or a component of an irrigation system (e.g., a canal or headgate) is more likely to qualify as
historic if it is more than 50 years old, if it is the oldest (or an early) system/component in
the surrounding area, and if the system/component has not been significantly altered or
modernized. In general, proposed projects that involve ground disturbance, or the alteration
of existing older structures, are more likely to have the potential to affect cultural resources.
However, the level of cultural resources compliance required, and the associated cost,
depends on a case-by-case review of the circumstances presented by each proposal.
You should contact your State Historic Preservation Office and your local Reclamation office’s
cultural resources specialist to determine what, if any, cultural resources surveys have been
conducted in the project area. See www.usbr.gov/cultural/crmstaff.html for a list of Reclamation
cultural resource specialists. If an applicant has previously received Federal financial assistance it is
possible that a cultural resources survey has already been completed.
H.2.3. Endangered Species Act
Pursuant to Section 7 of the ESA, each Federal agency is required to consult with the U.S. Fish and
Wildlife Service (USFWS) or the National Oceanic and Atmospheric Administration (NOAA)
Fisheries Service to ensure any action it authorizes, funds, or carries out is not likely to jeopardize
the continued existence of any endangered or threatened species or destroy or adversely
modify any designated critical habitat.
Before Reclamation can approve funding for the implementation of a proposed project, it is
required to comply with Section 7 of the ESA. The steps necessary for ESA compliance vary,
depending on the presence of endangered or threatened species and the effects of the proposed
project.
A rough overview of the possible course of ESA compliance is:
• If Reclamation can determine that there are no endangered or threatened species or
designated critical habitat in the project area, then the ESA review is complete and no
further compliance measures are required. This process can take anywhere from one day to
one month.
• If Reclamation determines that endangered or threatened species may be affected by the
project, then a Biological Assessment must be prepared by Reclamation. The Biological
Assessment is used to help determine whether a proposed action may affect a listed species
or its designated critical habitat. The Biological Assessment may result in a determination
that a proposed action is not likely to adversely affect any endangered or threatened
species.
Section H. Other Information
47
If the USFWS/NOAA Fisheries Service concurs in writing, then no further consultation is
required and the ESA compliance is complete. Depending on the scope and complexity of
the proposed action, preparation of a Biological Assessment can range from days to weeks
or even months. The USFWS/NOAA Fisheries Service generally respond to requests for
concurrence within 30 days
• If it is determined that the project is likely to adversely affect listed species, further
consultation (formal consultation) with USFWS or NOAA Fisheries Service is required to
comply with the ESA. The process includes the creation of a Biological Opinion by the
USFWS/NOAA Fisheries Service, including a determination of whether the project would
jeopardize listed species and, if so, whether any reasonable and prudent alternatives to the
proposed project are necessary to avoid jeopardy. Nondiscretionary reasonable and
prudent measures and terms and conditions to minimize the impact of incidental take
may also be included. Under the timeframes established in the ESA regulations, the
Biological Opinion is issued within 135 days from the date that formal consultation was
initiated, unless an extension of time is agreed upon.
The time, cost, and extent of the work necessary to comply with the ESA depends upon whether
endangered or threatened species are present in the project area and, if so, whether the project might
have effects on those species significant enough to require formal consultation.
ESA compliance is often conducted parallel to the NEPA compliance process and, as in the case of
a CEC, documented simultaneously. The best source of information concerning the compliance
with the ESA in a particular project area is the local Reclamation environmental staff that can be
helpful in determining the presence of listed species and possible effects that would require
consultation with the USFWS or NOAA Fisheries Service. Contact your regional or area
Reclamation office, www.usbr.gov/main/offices.html with questions regarding ESA compliance
issues.
-1-
RESOLUTION 2021-041
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SUPPORTING THE GRANT APPLICATION BY FORT COLLINS UTILITIES FOR THE
UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF RECLAMATION’S
WATERSMART GRANTS: SMALL-SCALE WATER EFFICIENCY PROJECTS FOR
FISCAL YEAR 2021 AND AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS REGARDING SUCH A GRANT
WHEREAS, the City owns and operates Fort Collins Utilities (“Utilities”), which
includes a water utility that provides water to customers in its service area; and
WHEREAS, water conservation is a tool that is used by Utilities, primarily through the
Utilities Water Conservation Division, to manage and reduce the demand for water service from
the water utility by Utilities customers, which is beneficial to the City, the water utility, and its
ratepayers by, among other reasons, helping to ensure that the demand for water does not exceed
supplies, which could result in more shortages and other adverse impacts; and
WHEREAS, Utilities has developed the Xeriscape Incentive Program (“Program”) to
support customers seeking to transform their largescale landscapes to use less water from
Utilities, such as those of homeowners’ associations and commercial customers and funds have
been appropriated to carry out the Program; and
WHEREAS, the United States Department of the Interior, Bureau of Reclamation
(“Reclamation”) has a Water SMART (Sustain and Manage America’s Resources for
Tomorrow) Program and has requested applications for WaterSMART Grants: Small-Scale
Water Efficiency Projects for Fiscal Year 2021 (“WaterSMART Grant”); and
WHEREAS, such a WaterSMART Grant could provide significant funding for the
Program, allowing it to expand beyond the scale that would otherwise be supported; and
WHEREAS, the City desires to pursue such a WaterSMART Grant; and
WHEREAS, with such a WaterSMART Grant, the City would be required to share 50%
or more of the total costs for the Program, which would be met by a combination of: monetary
contributions from XIP participants, City in-kind contributions, and
WHEREAS, Utilities has prepared a draft of the application for the WaterSMART Grant,
a copy of which is attached as Exhibit “A” (“WaterSMART Grant Application”), pursuant to
which Utilities would seek a grant of $75,000; and
WHEREAS, applications for WaterSMART Grants require a resolution from the
applicant’s governing board verifying: (1) the identity of the official with legal authority to enter
into an agreement: (2) the board of directors, governing body, or appropriate official who has
reviewed and supports the application submitted; (3) the capability of the applicant to provide the
amount of funding and/or in-kind contributions specified in the funding plan; and (4) that the
-2-
applicant will work with Reclamation to meet established deadlines for entering into a grant or
cooperative agreement.; and
WHEREAS, following the award of such a WATERSMART Grant, Reclamation and the
entity that was awarded the grant enter into an agreement, a form of which is attached as Exhi bit
“B”.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals above.
Section 2. That the City Manager is hereby authorized to execute an agreement
related to a WaterSMART Grant consistent with this resolution, with such terms and conditions
as the City Manager, in consultation with the City Attorney, determines to be necessary and
appropriate to protect the interests of the City and to effectuate the purposes of this resolution,
provided that all required matching funds have been appropriated prior to execution.
Section 3. That the City Council has reviewed and supports the WaterSMART Grant
Application to be submitted.
Section 4. That the City Council has the capability to provide the amount of funding
and/or in-kind contributions specified in the project budget funding plan described in the
WaterSMART Grant Application, as long as such funding has been appropriated by City
Council.
Section 5. That the City Manager will work with Reclamation to meet established
deadlines for entering into a grant or cooperative agreement related to any award of a
WaterSMART Grant.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
20th day of April, A.D. 2021.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ
ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&ŝƐĐĂůzĞĂƌϮϬϮϭ
ƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶEK&KEŽ͘ZϮϭ^ϬϬϯϬϬ
&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐ
yĞƌŝƐĐĂƉĞ/ŶĐĞŶƚŝǀĞWƌŽŐƌĂŵĨŽƌ,KΘŽŵŵĞƌĐŝĂůWƌŽƉĞƌƚŝĞƐϮϬϮϮ
DĂƌĐŚϭϴ͕ϮϬϮϭ
&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐ
ϮϮϮ>ĂƉŽƌƚĞǀĞ͕WKŽdžϱϴϬ
&ŽƌƚŽůůŝŶƐ͕KϴϬϱϮϮ
<ĂƚŝĞŽůůŝŶƐ͕WƌŽŐƌĂŵDĂŶĂŐĞƌ
ϮϮϮ>ĂƉŽƌƚĞǀĞ͕WKŽdžϱϴϬ
&ŽƌƚŽůůŝŶƐ͕KϴϬϱϮϮ
ϵϳϬͲϰϭϲͲϰϯϳϴ
ŬĐŽůůŝŶƐΛĨĐŐŽǀ͘ĐŽŵ
EXHIBIT A
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ŝ
dĂďůĞŽĨŽŶƚĞŶƚƐ
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y hd/s ^hDDZzϭ
WƌŽũĞĐƚ^ƵŵŵĂƌLJ ϭ
WZK: d>Kd/KEϮ
WZK: d ^Z/Wd/KEϯ
s>hd/KEZ/d Z/ϲ
͘ϭ͘ϭ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝŽŶͶWƌŽũĞĐƚĞŶĞĨŝƚƐ;ϯϱƉŽŝŶƚƐͿ ϲ
͘ϭ͘Ϯ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝŽŶͶWůĂŶŶŝŶŐ ĨĨŽƌƚƐ^ƵƉƉŽƌƚŝŶŐƚŚĞWƌŽũĞĐƚ;ϯϱƉŽŝŶƚƐͿ ϴ
͘ϭ͘ϯ͘ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝŽŶͶWƌŽũĞĐƚ/ŵƉůĞŵĞŶƚĂƚŝŽŶ;ϭϬƉŽŝŶƚƐͿ ϵ
͘ϭ͘ϰ͘ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝŽŶͶEĞdžƵƐƚŽZĞĐůĂŵĂƚŝŽŶ;ϭϬƉŽŝŶƚƐͿϭϬ
WZK: dh' d ϭϭ
&hE/E'W>EE> dd Z^K&KDD/dD Edϭϭ
h' dWZKWK^>ϭϭ
h' dEZZd/s ϭϮ
Es/ZKED Ed>Eh>dhZ>Z ^KhZ ^KDW>/E ϭϰ
Z Yh/Z W ZD/d^KZWWZKs>^ ϭϱ
> dd Z^K&WZK: d^hWWKZd ϭϱ
K&&//>Z ^K>hd/KE ϭϱ
hE/Yh Ed/dz/ Ed/&/ Z ϭϱ
>ŝƐƚŽĨdĂďůĞƐ
dĂďůĞϭ͘Ͷy/WƉƉůŝĐĂƚŝŽŶ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝĂ ϱ
dĂďůĞϮ͘Ͷ ƐƚŝŵĂƚĞĚWƌŽũĞĐƚ^ĐŚĞĚƵůĞ ϵ
dĂďůĞϯ͘ͶdŽƚĂůWƌŽũĞĐƚŽƐƚdĂďůĞ ϭϭ
dĂďůĞϰ͘Ͷ^ĂŵƉůĞƵĚŐĞƚWƌŽƉŽƐĂů&ŽƌŵĂƚ ϭϮ
>ŝƐƚŽĨ&ŝŐƵƌĞƐ
&ŝŐƵƌĞϭ͘tĂƚĞƌ^ĞƌǀŝĐĞƌĞĂĂŶĚƐƵƌƌŽƵŶĚŝŶŐtĂƚĞƌŝƐƚƌŝĐƚŽƵŶĚĂƌŝĞƐ͘ ϯ
>ŝƐƚŽĨƚƚĂĐŚŵĞŶƚƐ
>ĞƚƚĞƌŽĨ^ƵƉƉŽƌƚͲKĂŬƌŝĚŐĞs//,K
>ĞƚƚĞƌŽĨ^ƵƉƉŽƌƚʹtĂƚĞƌEŽǁůůŝĂŶĐĞ
ŶǀŝƌŽŶŵĞŶƚĂůŽŵƉůŝĂŶĐĞĨŽƌKZ'ƌĂŶƚZϭϵWϬϬϭϲϵ
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϭ
d ,E/>WZKWK^>E s>hd/KEZ/d Z/
džĞĐƵƚŝǀĞ^ƵŵŵĂƌLJ
ĂƚĞ͗DĂƌĐŚϭϴ͕ϮϬϮϭ
ƉƉůŝĐĂŶƚEĂŵĞ͗&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐ
&ŽƌƚŽůůŝŶƐ͕>ĂƌŝŵĞƌŽƵŶƚLJ͕ŽůŽƌĂĚŽ
WƌŽũĞĐƚDĂŶĂŐĞƌ͗
<ĂƚŝĞŽůůŝŶƐ
yĞƌŝƐĐĂƉĞWƌŽŐƌĂŵDĂŶĂŐĞƌ
ϵϳϬͲϰϭϲͲϰϯϳϴ
ŬĐŽůůŝŶƐΛĨĐŐŽǀ͘ĐŽŵ
ƉƉůŝĐĂŶƚĂƚĞŐŽƌLJ͗ĂƚĞŐŽƌLJ
'ƌĂŶƚ&ƵŶĚŝŶŐZĞƋƵĞƐƚ͗Ψϳϱ͕ϬϬϬ
EŽŶͲ&ĞĚĞƌĂůDĂƚĐŚŝŶŐ&ƵŶĚƐ͗ΨϭϬϬ͕ϮϬϱ
dŽƚĂůWƌŽũĞĐƚŽƐƚ͗Ψϭϳϱ͕ϮϬϱ
WƌŽũĞĐƚƵƌĂƚŝŽŶ͗ϭLJĞĂƌ
ƐƚŝŵĂƚĞĚWƌŽũĞĐƚ^ƚĂƌƚĂƚĞ͗ϬϮͬϮϬϮϮ
ƐƚŝŵĂƚĞĚWƌŽũĞĐƚŽŵƉůĞƚŝŽŶĂƚĞ͗ϬϮͬϮϬϮϯ
>ŽĐĂƚĞĚŽŶ&ĞĚĞƌĂů&ĂĐŝůŝƚLJ͗EŽ
hŶŝƋƵĞ ŶƚŝƚLJ/ĚĞŶƚŝĨŝĞƌ͗ϬϳϴϯϲϮϱϵϳ
WƌŽũĞĐƚ^ƵŵŵĂƌLJ
ĞŐŝŶŶŝŶŐŝŶϮϬϭϵ͕&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐ;͞hƚŝůŝƚŝĞƐ͟ͿƐƵĐĐĞƐƐĨƵůůLJƐƚĂƌƚĞĚĞdžƉĂŶĚŝŶŐŝƚƐƐŝŶŐůĞͲ
ĨĂŵŝůLJƌĞƐŝĚĞŶƚŝĂůyĞƌŝƐĐĂƉĞ/ŶĐĞŶƚŝǀĞWƌŽŐƌĂŵ;y/WͿƚŽŝŶĐůƵĚĞĐŽŵŵĞƌĐŝĂůͲƐĐĂůĞůĂŶĚƐĐĂƉĞƐ͘
&ƵŶĚĞĚďLJŐƌĂŶƚƐĨƌŽŵƚŚĞŽůŽƌĂĚŽtĂƚĞƌŽŶƐĞƌǀĂƚŝŽŶŽĂƌĚĂŶĚƚŚĞƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶ
;ZϭϵWϬϬϭϲϵͿƚŚĞƉƌŽŐƌĂŵŚĂƐƐŝŶĐĞƉƌŽǀŝĚĞĚĨŝŶĂŶĐŝĂůŝŶĐĞŶƚŝǀĞƐĨŽƌďƵƐŝŶĞƐƐĞƐ͕ŚŽŵĞŽǁŶĞƌ
ĂƐƐŽĐŝĂƚŝŽŶƐ;,KƐͿĂŶĚŽƚŚĞƌƉƌŽƉĞƌƚŝĞƐǁŝƚŚĐŽŵŵĞƌĐŝĂůůLJͲƐŝnjĞĚƉŽƚĂďůĞǁĂƚĞƌƚĂƉƐƚŽ
ƵŶĚĞƌƚĂŬĞůĂŶĚƐĐĂƉĞƚƌĂŶƐĨŽƌŵĂƚŝŽŶƐ͘dŚĞƐĞƉƌŽũĞĐƚƐƌĞĚƵĐĞŽƵƚĚŽŽƌǁĂƚĞƌƵƐĞĂŶĚŝŶĐƌĞĂƐĞ
ƌĞƐŝůŝĞŶĐĞƚŽĐƵƌƌĞŶƚĂŶĚĨƵƚƵƌĞĐůŝŵĂƚĞĐŽŶĚŝƚŝŽŶƐ͘dŚŝƐĞdžƉĂŶƐŝŽŶǁĂƐŝĚĞŶƚŝĨŝĞĚĂƐŶĞĐĞƐƐĂƌLJ
ďĂƐĞĚŽŶƚŚĞhƚŝůŝƚŝĞƐ͛tĂƚĞƌ ĨĨŝĐŝĞŶĐLJWůĂŶ;ǁǁǁ͘ĨĐŐŽǀ͘ĐŽŵͬǁĂƚĞƌͲĞĨĨŝĐŝĞŶĐLJͲƉůĂŶͿ͕ǁŚŝĐŚ
ŝĚĞŶƚŝĨŝĞƐƚŚĞĚƌŝǀŝŶŐĨŽƌĐĞƐĨŽƌƚŚĞĞdžƉĂŶƐŝŽŶĂƐůŽĐĂůĐůŝŵĂƚĞĐŚĂůůĞŶŐĞƐĂŶĚŝŶĐƌĞĂƐŝŶŐŝŶƚĞƌĞƐƚ
ĂŶĚŶĞĞĚĨƌŽŵĐŽŵŵĞƌĐŝĂůĐƵƐƚŽŵĞƌƐ͘dŚĞŵĂũŽƌŝƚLJŽĨƉƌŽŐƌĂŵĨƵŶĚƐǁŝůůďĞƵƐĞĚƚŽƌĞŝŵďƵƌƐĞ
ƵƉƚŽϱϬйŽĨƚŚĞĐŽƐƚŽĨĂƉƉƌŽǀĞĚƉƌŽũĞĐƚŝŶƐƚĂůůĂƚŝŽŶƐƚŚĂƚĚĞŵŽŶƐƚƌĂƚĞƐŝŐŶŝĨŝĐĂŶƚǁĂƚĞƌ
ƐĂǀŝŶŐƐƚŚƌŽƵŐŚƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƌĞŐŝŽŶĂůůLJĂƉƉƌŽƉƌŝĂƚĞůĂŶĚƐĐĂƉĞƉƌĂĐƚŝĐĞƐĂŶĚƉůĂŶƚ
ŵĂƚĞƌŝĂůƐ͕ĂŶĚƚŚĞĂƉƉƌŽƉƌŝĂƚĞƵƐĞŽĨŚŝŐŚͲĞĨĨŝĐŝĞŶĐLJŝƌƌŝŐĂƚŝŽŶĞƋƵŝƉŵĞŶƚ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
Ϯ
/ŶϮϬϮϬ͕ƚŚĞĨŝƌƐƚLJĞĂƌŽĨƚŚŝƐƉƌŽŐƌĂŵ͕ƐĞǀĞŶƉƌŽũĞĐƚƐǁĞƌĞƐƵƉƉŽƌƚĞĚĂĐƌŽƐƐϭϯĂĐƌĞƐ͘dŚĞ
ĂĐƚƵĂůǁĂƚĞƌƐĂǀŝŶŐƐĨŽƌƚŚĞƐĞƉƌŽũĞĐƚƐŝŶƚŚĞĨŝƌƐƚLJĞĂƌŽĨĞƐƚĂďůŝƐŚŵĞŶƚǁĂƐϮŵŝůůŝŽŶŐĂůůŽŶƐ
ĐŽŵƉĂƌĞĚƚŽĂǀĞƌĂŐĞŚŝƐƚŽƌŝĐƵƐĞŽǀĞƌĂƚŚƌĞĞͲLJĞĂƌƉĞƌŝŽĚ͘dŚŝƐŝƐĞƋƵĂůƚŽƐĂǀŝŶŐƐŽĨŽǀĞƌϯ
ŐĂůůŽŶƐƉĞƌƐƋƵĂƌĞĨŽŽƚŽĨĂƌĞĂĐŽŶǀĞƌƚĞĚ͘tĞŬŶŽǁƚŚĂƚƐĂǀŝŶŐƐǁŝůůůŝŬĞůLJďĞŐƌĞĂƚĞƌĂƐƚŚĞ
ůĂŶĚƐĐĂƉĞŵĂƚƵƌĞƐ͕ĂŶĚůĞƐƐƐƵƉƉůĞŵĞŶƚĂůǁĂƚĞƌŝƐŶĞĞĚĞĚ͘ĂƐĞĚŽŶĐĂůĐƵůĂƚĞĚĞƐƚŝŵĂƚĞƐ͕
ƉƌŽũĞĐƚƐŚĂǀĞƚŚĞƉŽƚĞŶƚŝĂůƚŽƐĂǀĞϴŐĂůůŽŶƐƉĞƌƐƋƵĂƌĞĨŽŽƚŽĨĂƌĞĂĐŽŶǀĞƌƚĞĚŽŶĐĞĨƵůůLJ
ĞƐƚĂďůŝƐŚĞĚ͘
WƌŽũĞĐƚ>ŽĐĂƚŝŽŶ
dŚĞŝƚLJŽĨ&ŽƌƚŽůůŝŶƐ;ŝƚLJͿŝƐůŽĐĂƚĞĚϲϱŵŝůĞƐŶŽƌƚŚŽĨĞŶǀĞƌ͕ŽůŽƌĂĚŽŝŶ>ĂƌŝŵĞƌŽƵŶƚLJ͘
&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐƐĞƌǀŝĐĞĂƌĞĂďŽƵŶĚĂƌŝĞƐĨŽƌǁĂƚĞƌĚŽŶŽƚƉĞƌĨĞĐƚůLJŵĂƚĐŚƚŚĞŝƚLJůŝŵŝƚƐ͘
&ŝŐƵƌĞϭƐŚŽǁƐ&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐƐĞƌǀŝĐĞĂƌĞĂƌĞůĂƚŝǀĞƚŽŽƚŚĞƌǁĂƚĞƌĚŝƐƚƌŝĐƚƐĞƌǀŝĐĞĂƌĞĂƐĂŶĚ
ŝƚLJůŝŵŝƚƐ͘&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐĐƵƌƌĞŶƚůLJƐĞƌǀĞƐĂďŽƵƚϳϱйŽĨ&ŽƌƚŽůůŝŶƐ͛ƌĞƐŝĚĞŶƚƐĂŶĚ
ďƵƐŝŶĞƐƐĞƐ͘dŚĞyĞƌŝƐĐĂƉĞ/ŶĐĞŶƚŝǀĞWƌŽŐƌĂŵŝƐůŽĐĂƚĞĚŝŶ&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐƐĞƌǀŝĐĞĂƌĞĂŝŶ
&ŽƌƚŽůůŝŶƐ͕ŽůŽƌĂĚŽh^͘ůůĨƵŶĚĞĚƉƌŽũĞĐƚƐǁŝůůŽĐĐƵƌǁŝƚŚŝŶ&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐ͛ƐĞƌǀŝĐĞ
ĂƌĞĂ͘dŚĞƉƌŽũĞĐƚůĂƚŝƚƵĚĞŝƐϰϬΣϯϱ͛EĂŶĚƚŚĞůŽŶŐŝƚƵĚĞŝƐϭϬϱΣϱ͛t͘dŚĞǁĞĂƚŚĞƌĂŶĚĐůŝŵĂƚĞ
ĐŽŶĚŝƚŝŽŶƐŝŶƚŚŝƐƐĞŵŝͲĂƌŝĚƌĞŐŝŽŶŵĞĂŶƚŚĂƚŶĞĂƌůLJĂůůůĂŶĚƐĐĂƉĞƐƌĞƋƵŝƌĞŝƌƌŝŐĂƚŝŽŶƚŽƐƵƌǀŝǀĞ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϯ
&ŝŐƵƌĞϮ͘tĂƚĞƌ^ĞƌǀŝĐĞƌĞĂĂŶĚƐƵƌƌŽƵŶĚŝŶŐtĂƚĞƌŝƐƚƌŝĐƚŽƵŶĚĂƌŝĞƐ͘
WƌŽũĞĐƚĞƐĐƌŝƉƚŝŽŶ
&ŽƌƚŽůůŝŶƐhƚŝůŝƚŝĞƐƌĞƋƵĞƐƚƐĨƵŶĚƐŝŶƚŚĞĂŵŽƵŶƚŽĨΨϳϱ͕ϬϬϬƚŽŽƉĞƌĂƚĞŝƚƐyĞƌŝƐĐĂƉĞ/ŶĐĞŶƚŝǀĞ
WƌŽŐƌĂŵ;y/WͿĨŽƌ,KΘŽŵŵĞƌĐŝĂůƉƌŽƉĞƌƚŝĞƐ͘
dŚĞŽůŽƌĂĚŽ&ƌŽŶƚZĂŶŐĞŝƐŽŶĞŽĨƚŚĞĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶƐĂŶĚƉŽƉƵůĂƚŝŽŶŐƌŽǁƚŚŝƐ
ƉƵƚƚŝŶŐƉƌĞƐƐƵƌĞŽŶǁĂƚĞƌƐƵƉƉůŝĞƐ͘tŚŝůĞǁĞŚĂǀĞĂƉŽƌƚĨŽůŝŽŽĨŽƚŚĞƌǁĂƚĞƌĐŽŶƐĞƌǀĂƚŝŽŶĂŶĚ
ĞĨĨŝĐŝĞŶĐLJƉƌŽŐƌĂŵƐ͕ĐƵƐƚŽŵĞƌƐĂƌĞĐƵƌƌĞŶƚůLJǀĞƌLJŝŶƚĞƌĞƐƚĞĚŝŶƉƵƌƐƵŝŶŐůĂŶĚƐĐĂƉĞĐŚĂŶŐĞĚƵĞ
ƚŽĂƌĞĐĞŶƚƌĂƚĞŝŶĐƌĞĂƐĞƚŚĂƚŝƐĚƌŝǀŝŶŐĐƵƐƚŽŵĞƌƐƚŽĂĚĚƌĞƐƐĐŽŵŵĞƌĐŝĂůůĂŶĚƐĐĂƉĞǁĂƚĞƌƵƐĞ͘
dŚĞƌĂƚĞŝŶĐƌĞĂƐĞŝƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞƉƌŽũĞĐƚĞĚĐŽƐƚŽĨĂĐƋƵŝƌŝŶŐĂĚĚŝƚŝŽŶĂůǁĂƚĞƌƌĞƐŽƵƌĐĞƐ
ŝŶĂŶŝŶĐƌĞĂƐŝŶŐůLJǁĂƚĞƌͲƐĐĂƌĐĞƌĞŐŝŽŶŽĨƚŚĞtĞƐƚ͘dŚĞƌĂƚĞŚĞĂǀŝůLJŝŵƉĂĐƚƐŝƌƌŝŐĂƚŝŽŶĂĐĐŽƵŶƚƐ
ĂŶĚŽƚŚĞƌĐŽŵŵĞƌĐŝĂůĂĐĐŽƵŶƚƐǁŚŽĞdžĐĞĞĚƚŚĞŝƌĂŶŶƵĂůǁĂƚĞƌĂůůŽƚŵĞŶƚ͘KŶĐĞĞdžĐĞĞĚĞĚ
ĐƵƐƚŽŵĞƌƐƌĞĐĞŝǀĞĂƐƵƌĐŚĂƌŐĞƚŚĂƚƋƵĂĚƌƵƉŽůĞƐƚŚĞĐŽƐƚŽĨǁĂƚĞƌĨŽƌƚŚĞƌĞŵĂŝŶĚĞƌŽĨƚŚĞ
LJĞĂƌ͘dŚĞǁĂƚĞƌĂůůŽƚŵĞŶƚŝƐďĂƐĞĚŽŶƚŚĞĂŵŽƵŶƚŽĨǁĂƚĞƌƉƌŽǀŝĚĞĚĨŽƌƚŚĂƚĂĐĐŽƵŶƚĂƚƚŚĞ
ƚŝŵĞŽĨĚĞǀĞůŽƉŵĞŶƚ͖ǁŚĞŶĐƵƐƚŽŵĞƌƐŐŽŽǀĞƌƚŚĞĂůůŽƚŵĞŶƚ͕hƚŝůŝƚŝĞƐŵƵƐƚĂƉƉůLJĂƐƵƌĐŚĂƌŐĞ
ƚŽĐŽůůĞĐƚƌĞǀĞŶƵĞƚŽĂĐƋƵŝƌĞĂĚĚŝƚŝŽŶĂůǁĂƚĞƌƌĞƐŽƵƌĐĞƐƚŽŵĞĞƚƚŚĞĂĚĚŝƚŝŽŶĂůĚĞŵĂŶĚ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϰ
ZĞĚƵĐŝŶŐĐƵƐƚŽŵĞƌǁĂƚĞƌĚĞŵĂŶĚďĞŶĞĨŝƚƐďŽƚŚƚŚĞĐƵƐƚŽŵĞƌĂŶĚhƚŝůŝƚŝĞƐͲƚŚĞĐƵƐƚŽŵĞƌ
ƌĞĚƵĐĞƐƚŚĞŝƌďŝůůǁŚŝůĞhƚŝůŝƚŝĞƐƌĞĚƵĐĞƐƚŚĞŶĞĞĚƚŽĂĐƋƵŝƌĞĂĚĚŝƚŝŽŶĂůǁĂƚĞƌƌĞƐŽƵƌĐĞƐ͘ƐĂ
ƌĞƐƵůƚ͕ǁĞĂƌĞƐĞĞŬŝŶŐĂůůŽƉƉŽƌƚƵŶŝƚŝĞƐƚŽƌĞƐŽƵƌĐĞƉƌŽŐƌĂŵƐĂŶĚƐĞƌǀŝĐĞƐƚŚĂƚǁŝůůŚĞůƉ
ŝŵƉůĞŵĞŶƚƐƵĐĐĞƐƐĨƵůĐŽŵŵĞƌĐŝĂůͲƐĐĂůĞůĂŶĚƐĐĂƉĞƚƌĂŶƐĨŽƌŵĂƚŝŽŶƉƌŽũĞĐƚƐƚŽĂĚĚƌĞƐƐƚŚŝƐ
ƚŝŵĞůLJŶĞĞĚ͕ŽŶĞŽĨƚŚĞŵŽƐƚƌĞƋƵĞƐƚĞĚŽĨǁŚŝĐŚŝƐy/W͘
y/WƉƌŽǀŝĚĞƐĂƌĞŝŵďƵƌƐĞŵĞŶƚŽĨƵƉƚŽϱϬйŽĨƚŚĞƉƌŽũĞĐƚĐŽƐƚ͕ŽƌĂŵĂdžŝŵƵŵŽĨΨϭϱ͕ϬϬϬƉĞƌ
ƉƌŽũĞĐƚ͕ĨŽƌƚƌĂŶƐĨŽƌŵŝŶŐŚŝŐŚͲǁĂƚĞƌƵƐĞůĂŶĚƐĐĂƉĞƚŽůŽǁͲŽƌŶŽͲǁĂƚĞƌͲƵƐĞůĂŶĚƐĐĂƉŝŶŐŽƌ
ƉĞƌŵĞĂďůĞŚĂƌĚƐĐĂƉŝŶŐ͘dŚŽƐĞǁŚŽĂƉƉůLJĨŽƌƚŚĞƉƌŽŐƌĂŵ;͞ƉƉůŝĐĂŶƚƐ͟ͿĂƌĞƚLJƉŝĐĂůůLJ
ĐŽŶǀĞƌƚŝŶŐǁĂƚĞƌͲŝŶƚĞŶƐĞůĂŶĚƐĐĂƉĞƐ͕Žƌ͞ǁĂůůͲƚŽͲǁĂůů<ĞŶƚƵĐŬLJďůƵĞŐƌĂƐƐ͟ŝŶĨĂǀŽƌŽĨƉůĂŶƚƐ
ĂŶĚůĂŶĚƐĐĂƉĞĨĞĂƚƵƌĞƐǁŝƚŚĂŵƵĐŚůŽǁĞƌǁĂƚĞƌƌĞƋƵŝƌĞŵĞŶƚ͕ƐƵĐŚĂƐŶĂƚŝǀĞŐƌĂƐƐůĂŶĚƐĂŶĚ
ůŽǁͲǁĂƚĞƌƉĞƌĞŶŶŝĂůĂŶĚƐŚƌƵďďĞĚƐ͘&ƵŶĚƐĂƌĞƌĞƋƵĞƐƚĞĚĂŶĚĂǁĂƌĚĞĚďĂƐĞĚŽŶΨϭ͘ϱϬƉĞƌ
ƐƋƵĂƌĞĨŽŽƚŽĨĂƌĞĂĐŽŶǀĞƌƚĞĚĨƌŽŵŚŝŐŚͲǁĂƚĞƌƵƐĞƚŽůŽǁͲǁĂƚĞƌƵƐĞůĂŶĚƐĐĂƉĞ͘ƉƉůŝĐĂŶƚƐĂƌĞ
ƌĞƋƵŝƌĞĚƚŽƉƌŽǀŝĚĞ͞ďĞĨŽƌĞ͟ƉŚŽƚŽƐ͕ĐŽŵƉƌĞŚĞŶƐŝǀĞůĂŶĚƐĐĂƉĞĂŶĚŝƌƌŝŐĂƚŝŽŶƉůĂŶƐŝŶĐůƵĚŝŶŐ
ĚĞƚĂŝůƐŽĨůĂŶĚƐĐĂƉĞŵŽĚŝĨŝĐĂƚŝŽŶƐƚŚĂƚǁŝůůƐƵƉƉŽƌƚƚŚĞŶĞǁůĂŶĚƐĐĂƉĞ͕ůĞƚƚĞƌƐŽĨƐƵƉƉŽƌƚĨƌŽŵ
ƚŚĞƐƵƌƌŽƵŶĚŝŶŐĐŽŵŵƵŶŝƚLJĂŶĚĞƐƚŝŵĂƚĞĚǁĂƚĞƌƐĂǀŝŶŐƐ͘ƉƉůŝĐĂƚŝŽŶƐĂƌĞƐĐŽƌĞĚďĂƐĞĚŽŶ
ĞǀĂůƵĂƚŝŽŶĐƌŝƚĞƌŝĂ;dĂďůĞϭͿĂŶĚĂƌĞǀĞƚƚĞĚďLJĂĐƌŽƐƐͲĚŝƐĐŝƉůŝŶĂƌLJƚĞĂŵƚŽƉƌŽǀŝĚĞĂĚĚŝƚŝŽŶĂů
ƐŽƵŶĚĂŶĚƉƌŽĨĞƐƐŝŽŶĂůĨĞĞĚďĂĐŬƚŽŚĞůƉƐƵƉƉŽƌƚĂŶĚĞŶƐƵƌĞŐƌĞĂƚĞƌƉƌŽũĞĐƚƐƵĐĐĞƐƐ͘
KŶĐĞĂƉƉƌŽǀĞĚ͕ƚŚŽƐĞǁŚŽƌĞĐĞŝǀĞĨƵŶĚƐ;͞ZĞĐŝƉŝĞŶƚ;ƐͿ͟ͿĂƌĞƌĞƋƵŝƌĞĚƚŽƐŝŐŶĂůĞŐĂůĐƵƐƚŽŵĞƌ
ĂŐƌĞĞŵĞŶƚ͕ƐƚŝƉƵůĂƚŝŶŐƚŚĂƚƚŚĞZĞĐŝƉŝĞŶƚǁŝůůĐŽŵƉůĞƚĞƚŚĞƉƌŽũĞĐƚĂƐƉƌĞƐĞŶƚĞĚĂŶĚƉƌŽǀŝĚĞ
ƌĞƋƵŝƌĞĚĚŽĐƵŵĞŶƚĂƚŝŽŶŝŶĐůƵĚŝŶŐƉƌŽŐƌĞƐƐƌĞƉŽƌƚƐĂƚĂŐƌĞĞĚƵƉŽŶĚĞĂĚůŝŶĞƐ͘/ŶĂĚĚŝƚŝŽŶƚŽy/W
ƌĞƋƵŝƌĞŵĞŶƚƐ͕ĂƉƉůŝĐĂŶƚƐĂƌĞƌĞƋƵŝƌĞĚƚŽĨŽůůŽǁŝƚLJŽĚĞŝŶĐůƵĚŝŶŐ͕ďƵƚŶŽƚůŝŵŝƚĞĚƚŽ͕ĞƌŽƐŝŽŶ
ĐŽŶƚƌŽůŵĞĂƐƵƌĞƐ͕ƉůĂŶŶŝŶŐĂŶĚnjŽŶŝŶŐƌĞǀŝĞǁĂŶĚĂƉƉƌŽǀĂůƉƌŽĐĞƐƐ͕ĂŶĚƐƚŽƌŵǁĂƚĞƌ
ĐŽŶƐŝĚĞƌĂƚŝŽŶƐ͘ZĞĐŝƉŝĞŶƚƐĂƌĞƌĞƋƵŝƌĞĚƚŽƐƵƉƉůLJĞƐƚĂďůŝƐŚŵĞŶƚĂŶĚůŽŶŐͲƚĞƌŵŵĂŶĂŐĞŵĞŶƚ
ƉůĂŶƐƚŚĂƚĂƌĞƚŚĞŶĞŶƚĞƌĞĚŝŶƚŽŽĨĨŝĐŝĂůŝƚLJĚŽĐƵŵĞŶƚƐƚŝĞĚƚŽƚŚĂƚƉƌŽƉĞƌƚLJ͘
KƵƚƐŝĚĞŽĨƌĞƋƵŝƌĞŵĞŶƚƐŽƵƚůŝŶĞĚŝŶƚŚĞƐŝŐŶĞĚĐƵƐƚŽŵĞƌĂŐƌĞĞŵĞŶƚ͕ĂƉƉƌŽǀĞĚƉƌŽũĞĐƚƐĂƌĞ
ŝŶƐƚĂůůĞĚĂƚƚŚĞĚŝƐĐƌĞƚŝŽŶŽĨƚŚĞZĞĐŝƉŝĞŶƚ͛ƐƉƌŽũĞĐƚŵĂŶĂŐĞƌƉĞƌƉƌŽũĞĐƚ͘dŚĞZĞĐŝƉŝĞŶƚƉƌŽũĞĐƚ
ŵĂŶĂŐĞƌĂŐƌĞĞƐƚŽŝŶƐƚĂůůƚŚĞƉƌŽũĞĐƚǁŝƚŚŝŶŽŶĞLJĞĂƌ͘
hƚŝůŝƚŝĞƐĚŽĞƐŶŽƚĐƵƌƌĞŶƚůLJŚĂǀĞƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐƚŽĐŽŶƚŝŶƵĞƚŽĨƵůůLJĨƵŶĚƚŚĞyĞƌŝƐĐĂƉĞ
/ŶĐĞŶƚŝǀĞWƌŽŐƌĂŵĨŽƌ,KΘŽŵŵĞƌĐŝĂůƉƌŽƉĞƌƚŝĞƐĂĨƚĞƌϮϬϮϭ͘dŚĞŝƚLJŽĨ&ŽƌƚŽůůŝŶƐ
ŽƌŐĂŶŝnjĂƚŝŽŶĂŶĚŝƚLJŽƵŶĐŝůŝƐƐƵƉƉŽƌƚŝǀĞŽĨƚŚĞƉƌŽŐƌĂŵ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϱ
dĂďůĞϮ͘y/WƉƉůŝĐĂƚŝŽŶ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝĂ
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϲ
ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝĂ
͘ϭ͘ϭ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝŽŶͶWƌŽũĞĐƚĞŶĞĨŝƚƐ;ϯϱƉŽŝŶƚƐͿ
ĞƐĐƌŝďĞƚŚĞĞdžƉĞĐƚĞĚďĞŶĞĨŝƚƐĂŶĚŽƵƚĐŽŵĞƐŽĨŝŵƉůĞŵĞŶƚŝŶŐƚŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚ͘
/ŶĚŝǀŝĚƵĂůǁĂƚĞƌƐĂǀŝŶŐƐ͗ĂƐĞĚŽŶĐĂůĐƵůĂƚŝŽŶĞƐƚŝŵĂƚĞƐ͕ǁĞďĞůŝĞǀĞƚŚĞƐĞƉƌŽũĞĐƚƐŚĂǀĞƚŚĞ
ƉŽƚĞŶƚŝĂůƚŽƐĂǀĞϴŐĂůůŽŶƐƉĞƌƐƋƵĂƌĞĨŽŽƚŽĨĂƌĞĂĐŽŶǀĞƌƚĞĚŽǀĞƌƚŚĞůŝĨĞƚŝŵĞŽĨƚŚĞƉƌŽũĞĐƚ͘/Ŷ
ϮϬϮϬ͕ƚŚĞĨŝƌƐƚLJĞĂƌŽĨƚŚŝƐƉƌŽŐƌĂŵ͕ƐĞǀĞŶƉƌŽũĞĐƚƐǁĞƌĞƐƵƉƉŽƌƚĞĚĂĐƌŽƐƐϭϯĂĐƌĞƐ͘dŚĞĂĐƚƵĂů
ǁĂƚĞƌƐĂǀŝŶŐƐĨŽƌƚŚĞƐĞƉƌŽũĞĐƚƐŝŶƚŚĞĨŝƌƐƚLJĞĂƌŽĨĞƐƚĂďůŝƐŚŵĞŶƚǁĂƐϮŵŝůůŝŽŶŐĂůůŽŶƐ
ĐŽŵƉĂƌĞĚƚŽƚŚƌĞĞͲLJĞĂƌĂǀĞƌĂŐĞǁĂƚĞƌƵƐĞŽŶƚŚĞƉƌŽƉĞƌƚLJ͘dŚŝƐŝƐĞƋƵĂůƚŽƐĂǀŝŶŐƐŽǀĞƌϯ
ŐĂůůŽŶƐƉĞƌƐƋƵĂƌĞĨŽŽƚŽĨĂƌĞĂĐŽŶǀĞƌƚĞĚ͘tĞŬŶŽǁƚŚĂƚƐĂǀŝŶŐƐǁŝůůůŝŬĞůLJďĞŐƌĞĂƚĞƌŽǀĞƌƚŝŵĞ
ĂƐƚŚĞůĂŶĚƐĐĂƉĞŵĂƚƵƌĞƐ͕ĂŶĚůĞƐƐƐƵƉƉůĞŵĞŶƚĂůǁĂƚĞƌŝƐŶĞĞĚĞĚ͘dŚŝƐŝƐĂďĞŶĞĨŝƚƚŽŽƵƌǁĂƚĞƌ
ƐƵƉƉůLJ͕ďĞĐĂƵƐĞŝƚĚĞĐƌĞĂƐĞƐƚŚĞŶĞĞĚƚŽĂĐƋƵŝƌĞĂĚĚŝƚŝŽŶĂůǁĂƚĞƌƐƵƉƉůŝĞƐƚŽŵĞĞƚŐƌŽǁŝŶŐ
ĚĞŵĂŶĚ͕ĂŶĚƚŽƚŚĞŝŶĚŝǀŝĚƵĂůĐƵƐƚŽŵĞƌŐƌŽƵƉƐƉƵƌƐƵŝŶŐƚŚĞƐĞůĂŶĚƐĐĂƉĞĐŚĂŶŐĞƐ͕ďĞĐĂƵƐĞŝƚ
ƌĞĚƵĐĞƐƚŚĞŝƌǁĂƚĞƌĂŶĚĐŽƐƚƐ͘
tĂƚĞƌƐƵƉƉůLJĚĞůŝǀĞƌLJƐLJƐƚĞŵ͗dŚŝƐƉƌŽũĞĐƚǁŝůůƌĞĚƵĐĞĚĞŵĂŶĚŽŶƚŚĞƐƵƌĨĂĐĞǁĂƚĞƌƐƵƉƉůLJ
ĚĞůŝǀĞƌLJƐLJƐƚĞŵ͕ǁŚŝĐŚǁŝůůŚĞůƉĂǀŽŝĚŽƌĚĞůĂLJĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƉƵƌĐŚĂƐŝŶŐŶĞǁǁĂƚĞƌ
ƐƵƉƉůŝĞƐ͘hƚŝůŝƚŝĞƐĂŶƚŝĐŝƉĂƚĞƐŶĞĞĚŝŶŐƚŽĂĐƋƵŝƌĞĂƉƉƌŽdžŝŵĂƚĞůLJΨϮϱ͘ϱŵŝůůŝŽŶǁŽƌƚŚŽĨ
ĂĚĚŝƚŝŽŶĂůǁĂƚĞƌƌŝŐŚƚƐ͕ƐŽŵĞŽĨǁŚŝĐŚĐĂŶďĞĂǀŽŝĚĞĚƚŚƌŽƵŐŚĐŽƐƚͲĞĨĨĞĐƚŝǀĞĐŽŶƐĞƌǀĂƚŝŽŶ
ƉƌŽũĞĐƚƐ͘/ƚĐŽƐƚƐƚŚĞhƚŝůŝƚLJΨϭϯϬƉĞƌϭ͕ϬϬϬŐĂůůŽŶƐŽĨǁĂƚĞƌƚŽĚĞǀĞůŽƉŶĞǁǁĂƚĞƌƐƵƉƉůŝĞƐ͘
ĂƐĞĚŽŶϮϬϭϵĚĂƚĂ͕ƚŚĞĐŽƐƚŽĨƚŚĞyĞƌŝƐĐĂƉĞ/ŶĐĞŶƚŝǀĞWƌŽŐƌĂŵŝƐΨϭϳƉĞƌϭ͕ϬϬϬŐĂůůŽŶƐƐĂǀĞĚ͕
ĂϴϳйƐĂǀŝŶŐƐŽǀĞƌĚĞǀĞůŽƉŝŶŐŶĞǁǁĂƚĞƌƐƵƉƉůŝĞƐ͘ZĞĚƵĐŝŶŐǁĂƚĞƌĚĞŵĂŶĚƐŝŶĐƌĞĂƐĞƐƚŚĞ
ƌĞůŝĂďŝůŝƚLJŽĨĞdžŝƐƚŝŶŐǁĂƚĞƌƐƵƉƉůŝĞƐĂŶĚƌĞĚƵĐĞƐƚŚĞŶĞĞĚƚŽĂĐƋƵŝƌĞŶĞǁ͕ĞdžƉĞŶƐŝǀĞǁĂƚĞƌ
ƐƵƉƉůŝĞƐ͘LJƌĞĚƵĐŝŶŐŝƌƌŝŐĂƚŝŽŶŶĞĞĚƐ͕y/WǁŝůůĂůƐŽƌĞĚƵĐĞƉĞĂŬƐĞĂƐŽŶĂŶĚƉĞĂŬĚĂLJĚĞŵĂŶĚƐ͘
ůŽǁĞƌƉĞĂŬĚĞŵĂŶĚǁŝůůĚĞůĂLJĂŶĚͬŽƌƌĞĚƵĐĞƐƚŚĞƐŝnjĞĂŶĚĐŽƐƚŽĨĨƵƚƵƌĞĞdžƉĂŶƐŝŽŶƐƚŽ
ƚƌĞĂƚŵĞŶƚĂŶĚĚĞůŝǀĞƌLJŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘
tĂƚĞƌƐƵƉƉůLJƌĞůŝĂďŝůŝƚLJ͗>ĂŶĚƐĐĂƉĞĐŚĂŶŐĞƐŝŵƉƌŽǀĞƌĞƐŝůŝĞŶĐLJƚŽĚƌŽƵŐŚƚĂŶĚĐůŝŵĂƚĞĐŚĂŶŐĞ͘
&ŽƌƚŽůůŝŶƐǁĂƚĞƌƐƵƉƉůŝĞƐĂƌĞďĞŝŶŐĨĂĐĞĚǁŝƚŚĐŚĂůůĞŶŐĞƐĞǀĞƌLJLJĞĂƌĂŶĚǁŝƚŚŵŽƌĞĨƌĞƋƵĞŶĐLJ͘
dŚĞƌĞĐĞŶƚĚĞǀĂƐƚĂƚŝŽŶĐĂƵƐĞĚďLJƚŚĞĂŵĞƌŽŶWĞĂŬ&ŝƌĞ͕ƚŚĞůĂƌŐĞƐƚƌĞĐŽƌĚĞĚǁŝůĚĨŝƌĞŝŶ
ŽůŽƌĂĚŽ͛ƐŚŝƐƚŽƌLJŝƐůŝŬĞůLJƚŽŝŵƉĂĐƚƚŚĞhƚŝůŝƚŝĞƐǁĂƚĞƌƐŚĞĚĨŽƌLJĞĂƌƐƚŽĐŽŵĞ͘ŽƵƉůĞĚǁŝƚŚ
ĐƵƌƌĞŶƚĚƌŽƵŐŚƚĐŽŶĚŝƚŝŽŶƐ͕&ŽƌƚŽůůŝŶƐŝƐůŝŬĞůLJƚŽƐĞĞŵĂŶĚĂƚŽƌLJǁĂƚĞƌƌĞƐƚƌŝĐƚŝŽŶƐŝŶĐŽŵŝŶŐ
LJĞĂƌƐ͘ƌŽƵŐŚƚĂŶĚǁĂƚĞƌƐŚŽƌƚĂŐĞƐĚƵĞƚŽĨŝƌĞŽƌŽƚŚĞƌŶĂƚƵƌĂůĚŝƐĂƐƚĞƌƐ͕ŽƌŝŶĨƌĂƐƚƌƵĐƚƵƌĞ
ŵĂŝŶƚĞŶĂŶĐĞĂƌĞĂŶŝŵƉŽƌƚĂŶƚĂŶĚŝŶĐƌĞĂƐŝŶŐůLJĨƌĞƋƵĞŶƚƌĞŵŝŶĚĞƌƚŽƐƚƌŝǀĞĨŽƌƌĞƐŝůŝĞŶĐĞ͘
dŚƌŽƵŐŚy/W͕ƉĂƌƚŝĐŝƉĂŶƚƐǁŝůůƉƌŽĂĐƚŝǀĞůLJĞƐƚĂďůŝƐŚŵŽƌĞƚŽůĞƌĂŶƚůĂŶĚƐĐĂƉĞƐƚŚĂƚƌĞƋƵŝƌĞůĞƐƐ
ǁĂƚĞƌůŽŶŐͲƚĞƌŵ͕ĂůůŽǁŝŶŐĐŽŵŵƵŶŝƚŝĞƐĂŶĚhƚŝůŝƚŝĞƐƚŽŶĂǀŝŐĂƚĞĨƵƚƵƌĞƐŚŽƌƚĂŐĞƐĂŶĚǁĂƌŵĞƌ͕
ĚƌŝĞƌĐůŝŵĂƚĞĐŽŶĚŝƚŝŽŶƐǁŝƚŚĨĞǁĞƌŝŵƉĂĐƚƐ͘dŚĞƌĞŝƐĂƉŽƚĞŶƚŝĂůĨŽƌĂŽŵƉĂĐƚĂůůŽŶƚŚĞ
ŽůŽƌĂĚŽZŝǀĞƌ͕ǁŚŝĐŚĐŽƵůĚŝŵƉĂĐƚhƚŝůŝƚŝĞƐ͛ǁĂƚĞƌƐƵƉƉůŝĞƐĨƌŽŵƚŚĞŽůŽƌĂĚŽͲŝŐdŚŽŵƉƐŽŶ
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
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ƉƌŽũĞĐƚ͘ZĞĚƵĐŝŶŐůŽŶŐͲƚĞƌŵĚĞŵĂŶĚƌĞĚƵĐĞƐƌĞůŝĂŶĐĞŽŶƚŚŝƐƉŽƚĞŶƚŝĂůůLJůĞƐƐƌĞůŝĂďůĞǁĂƚĞƌ
ƐƵƉƉůLJ͘
'ĞŽŐƌĂƉŚŝĐƐĐŽƉĞŽĨďĞŶĞĨŝƚƐ;ůŽĐĂů͕ƐƵďͲďĂƐŝŶ͕ďĂƐŝŶͿ͗dŚĞƉƌŽŐƌĂŵǁŝůůŝŶĐůƵĚĞůĂŶĚƐĐĂƉĞ
ƚƌĂŶƐĨŽƌŵĂƚŝŽŶƉƌŽũĞĐƚƐŝŶƚŚĞĂĐŚĞůĂWŽƵĚƌĞƐƵďͲďĂƐŝŶŽĨƚŚĞ^ŽƵƚŚWůĂƚƚĞZŝǀĞƌďĂƐŝŶ͘LJ
ƌĞĚƵĐŝŶŐŽǀĞƌĂůůǁĂƚĞƌƵƐĞ͕ƚŚĞƉƌŽŐƌĂŵǁŝůůƌĞĚƵĐĞĚĞŵĂŶĚƐŽŶǁĂƚĞƌƐƵƉƉůŝĞƐŝŶďŽƚŚƚŚĞ
^ŽƵƚŚWůĂƚƚĞZŝǀĞƌďĂƐŝŶĂƐǁĞůůĂƐƚŚĞŽůŽƌĂĚŽZŝǀĞƌĂƐŝŶ;ŽůŽƌĂĚŽͲŝŐdŚŽŵƉƐŽŶƉƌŽũĞĐƚͿ͘
ĞŶĞĨŝƚƐƚŽůŽĐĂůƐĞĐƚŽƌƐĂŶĚĞĐŽŶŽŵŝĞƐ͗ƵĞƚŽƚŚĞƐĐŽƉĞŽĨĐŽŵŵĞƌĐŝĂůƉƌŽũĞĐƚƐ͕Ăůů
ƉĂƌƚŝĐŝƉĂŶƚƐĂƌĞĞdžƉĞĐƚĞĚƚŽƵƚŝůŝnjĞƉƌŽĨĞƐƐŝŽŶĂůĚĞƐŝŐŶ͕ŝƌƌŝŐĂƚŝŽŶ͕ŚĂƌĚƐĐĂƉŝŶŐ͕ĂŶĚͬŽƌ
ůĂŶĚƐĐĂƉŝŶŐĐŽŵƉĂŶŝĞƐ͘WĂƌƚŝĐŝƉĂŶƚƐĂŶĚƚŚĞŝƌĐŽŶƚƌĂĐƚŽƌƐǁŝůůƵƚŝůŝnjĞůŽĐĂůĂŶĚƌĞŐŝŽŶĂůǀĞŶĚŽƌƐ
ĂŶĚŶƵƌƐĞƌŝĞƐƚŚĂƚƐƉĞĐŝĂůŝnjĞŝŶŚŝŐŚͲĞĨĨŝĐŝĞŶĐLJŝƌƌŝŐĂƚŝŽŶĞƋƵŝƉŵĞŶƚ͕ĂŶĚĚƌŽƵŐŚƚƚŽůĞƌĂŶƚĂŶĚ
ǁĂƚĞƌǁŝƐĞƉůĂŶƚŵĂƚĞƌŝĂůƐ͘dŚĞƐĞǀĞŶƉƌŽũĞĐƚƐĐŽŵƉůĞƚĞĚƚŚƌŽƵŐŚƚŚŝƐƉƌŽŐƌĂŵŝŶϮϬϮϬŚĂĚĂ
ƚŽƚĂůĐŽŵďŝŶĞĚƉƌŽũĞĐƚĐŽƐƚŽĨΨϭϱϰ͕ϴϱϰ͘y/WƉĂŝĚŽƵƚĂƚŽƚĂůŽĨũƵƐƚŽǀĞƌΨϲϴ͕ϬϬϬŝŶƌĞďĂƚĞƐ͘
dŚŝƐƐƵŐŐĞƐƚƐƚŚĂƚĞǀĞƌLJΨϭŽĨƌĞďĂƚĞŝŶĐĞŶƚŝǀĞŐĞŶĞƌĂƚĞƐĂďŽƵƚΨϮ͘ϯϬǁŽƌƚŚŽĨĞĐŽŶŽŵŝĐ
ĂĐƚŝǀŝƚLJŝŶŽƵƌůŽĐĂůŐƌĞĞŶŝŶĚƵƐƚƌLJ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞĨƵƚƵƌĞŵĂŝŶƚĞŶĂŶĐĞĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨ
ƚŚĞŶĞǁůĂŶĚƐĐĂƉĞƐǁŝůůƐƵƉƉŽƌƚůŽĐĂůůĂŶĚƐĐĂƉĞŵĂŶĂŐĞŵĞŶƚĐŽŵƉĂŶŝĞƐ͕ǁŚŝĐŚŝƐŶŽƚĐĂƉƚƵƌĞĚ
ŝŶƚŚŝƐǀĂůƵĞ͘
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ƚŚĞƉĂƌƚŝĐŝƉĂŶƚƐǁŚŽĂƌĞƌĞĂĚLJƚŽŵĂŬĞĂůĂŶĚƐĐĂƉĞĐŚĂŶŐĞŶŽǁ͕ǁĞĂƌĞĂĚĚŝŶŐƚŽĂďĂŶŬŽĨ
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ŝŶĨŽƌŵĂƚŝŽŶĨƌŽŵƚŚŝƐƉƌŽũĞĐƚǁŝůůďĞƐŚĂƌĞĚƚŚƌŽƵŐŚĂǀĂƌŝĞƚLJŽĨǀĞŶƵĞƐ͘hƚŝůŝƚŝĞƐŝƐĂŵĞŵďĞƌ
ŽĨƚŚĞZŽĐŬLJDŽƵŶƚĂŝŶ^ĞĐƚŝŽŶŽĨŵĞƌŝĐĂŶtĂƚĞƌtŽƌŬƐƐƐŽĐŝĂƚŝŽŶ;ttͿŽŶƐĞƌǀĂƚŝŽŶ
ŽŵŵŝƚƚĞĞ͕ǁŚĞƌĞĐŽŶƐĞƌǀĂƚŝŽŶƉƌŽĨĞƐƐŝŽŶĂůƐƌĞŐƵůĂƌůLJŵĞĞƚƚŽĚŝƐĐƵƐƐƚŽƉŝĐƐůŝŬĞǁĂƚĞƌ
ĞĨĨŝĐŝĞŶĐLJƉƌŽŐƌĂŵƐ͕ůĂŶĚƐĐĂƉĞĐŚĂŶŐĞ͕ĚƌŽƵŐŚƚƉůĂŶŶŝŶŐĂŶĚŵŽƌĞ͘hƚŝůŝƚŝĞƐƉĂƌƚŶĞƌƐǁŝƚŚ
ŽƚŚĞƌǁĂƚĞƌƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐĂŶĚŵĂŶĂŐĞƌƐŝŶƚŚĞŝŵŵĞĚŝĂƚĞ&ŽƌƚŽůůŝŶƐĂƌĞĂĂŶĚŵĞĞƚƐ
ƌĞŐƵůĂƌůLJǁŝƚŚŝƚLJWůĂŶŶĞƌƐƚŽĚŝƐĐƵƐƐŚŽǁƚŽĂĚĚƌĞƐƐǁĂƚĞƌŶĞĞĚƐĂŶĚĚĞǀĞůŽƉůĂŶĚǁŝƐĞůLJ
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ĐĂŶďĞƐŚĂƌĞĚƚŚƌŽƵŐŚƚŚĞŝƌŶĞǁƐůĞƚƚĞƌĂŶĚͬŽƌƚŚƌŽƵŐŚƚŚĞŝƌǁĞďŝŶĂƌƐĞƌŝĞƐ͘hƚŝůŝƚŝĞƐƌĞŐƵůĂƌůLJ
ĂƚƚĞŶĚƐĂŶĚƉƌĞƐĞŶƚƐĂƚƌĞŐŝŽŶĂůĂŶĚŶĂƚŝŽŶĂůĐŽŶĨĞƌĞŶĐĞƐ͘tĞĂŶƚŝĐŝƉĂƚĞƉƌĞƐĞŶƚŝŶŐƚŚĞƌĞƐƵůƚƐ
ŽĨƚŚŝƐƉƌŽŐƌĂŵĂƚĨƵƚƵƌĞĐŽŶĨĞƌĞŶĐĞƐ͘
ĂƚĂĂŶĚĞdžĂŵƉůĞƐŽĨĐŽŵŵĞƌĐŝĂůͲƐĐĂůĞůĂŶĚƐĐĂƉĞƉƌŽũĞĐƚƐƐƵĐŚĂƐƚŚŽƐĞƐƵƉƉŽƌƚĞĚďLJy/WĂƌĞ
ŚĞůƉŝŶŐƚŽďŽůƐƚĞƌĂĚĚŝƚŝŽŶĂůĞĨĨŽƌƚƐĂŶĚĞĂƌŶƐƵƉƉŽƌƚĨƌŽŵŝƚLJůĞĂĚĞƌƐŚŝƉ͘ƵƌƌĞŶƚůLJ͕hƚŝůŝƚŝĞƐ͛
tĂƚĞƌ^ƵƉƉůLJZĞƋƵŝƌĞŵĞŶƚĨŽƌĚĞǀĞůŽƉĞƌƐŝƐŶĞĂƌŝŶŐĐŽŵƉůĞƚŝŽŶŽĨĂŵĂũŽƌŽǀĞƌŚĂƵů͘tŝƚŚ
ĂƚƚƌĂĐƚŝǀĞĞdžĂŵƉůĞƐŽĨůĂƌŐĞǁĂƚĞƌǁŝƐĞůĂŶĚƐĐĂƉĞƐŝŶĂĚĚŝƚŝŽŶƚŽĚĂƚĂƐŚŽǁŝŶŐŵĂũŽƌǁĂƚĞƌ
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ĚĞǀĞůŽƉĞƌƐĂƌĞĨƵƌƚŚĞƌŝŶĐĞŶƚŝǀŝnjĞĚĂŶĚŵŽƚŝǀĂƚĞĚƚŽƉƵƌƐƵĞƌĞŐŝŽŶĂůůLJĂƉƉƌŽƉƌŝĂƚĞůĂŶĚƐĐĂƉĞƐ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϴ
dŚĞƐĞƉƌŽũĞĐƚƐƉƌŽǀŝĚĞůŽĐĂůĂŶĚƌĞĂůĞdžĂŵƉůĞƐƚŽƚŚĞŝƚLJWůĂŶŶŝŶŐĚĞƉĂƌƚŵĞŶƚĂŶĚŝƚLJ
ůĞĂĚĞƌƐŚŝƉĂŶĚŽƵŶĐŝůǁŚŽĂƌĞŐĞƚƚŝŶŐŽŶďŽĂƌĚƚŽƐƵƉƉŽƌƚůĂŶĚƐĐĂƉĞƐƚŚĂƚƐƚĞƉĂǁĂLJĨƌŽŵƚŚĞ
ŶŽƌŵĂůǁĂůůͲƚŽͲǁĂůů<ĞŶƚƵĐŬLJďůƵĞŐƌĂƐƐůĂŶĚƐĐĂƉĞͶĂůĂŶĚƐĐĂƉĞƚŚĂƚŝƐŶŽƚǁĞůůĂĚĂƉƚĞĚƚŽ&Žƌƚ
ŽůůŝŶƐĐůŝŵĂƚĞĐŽŶĚŝƚŝŽŶƐ͘&ŽƌŵŽƌĞŝŶĨŽƌŵĂƚŝŽŶĂďŽƵƚƚŚĞtĂƚĞƌ^ƵƉƉůLJZĞƋƵŝƌĞŵĞŶƚƵƉĚĂƚĞ͕
ǀŝƐŝƚĨĐŐŽǀ͘ĐŽŵͬǁƐƌͲƵƉĚĂƚĞ͘
^ŝŶĐĞĞdžƉĂŶĚŝŶŐy/W͕hƚŝůŝƚŝĞƐŚĂƐďĞĐŽŵĞŵŽƌĞĐŽůůĂďŽƌĂƚŝǀĞǁŝƚŚƚŚĞŝƚLJ͛ƐEĂƚƵƌĞŝŶƚŚĞŝƚLJ
WƌŽŐƌĂŵ;E/Ϳ͕ƚŚĞŵŝƐƐŝŽŶŽĨǁŚŝĐŚŝƐƚŽŝŶĐƌĞĂƐĞŶĂƚŝǀĞůĂŶĚƐĐĂƉĞƐŝŶ&ŽƌƚŽůůŝŶƐ͘EĂƚƵƌĞŝŶ
ƚŚĞŝƚLJŝƐǀĞƌLJŝŶƚĞƌĞƐƚĞĚŝŶy/WĞĨĨŽƌƚƐĂƐƚŚĞLJŚĂǀĞŚŝƐƚŽƌŝĐĂůůLJĞŶĐŽƵƌĂŐĞĚůĂƌŐĞƐǁĂƚŚƐŽĨ
ŶĂƚŝǀĞƉůĂŶƚŝŶŐƐ͕ƐƵƉƉŽƌƚŝŶŐŶĂƚŝǀĞǁŝůĚůŝĨĞĂŶĚƉŽůůŝŶĂƚŽƌƐ͘E/ĂŶĚhƚŝůŝƚŝĞƐĐŽŶƚŝŶƵĞƚŽĨŝŶĚ
ǁĂLJƐƚŽůĞǀĞƌĂŐĞƚŚĞŽƚŚĞƌƐ͛ŐŽĂůƐƚŚƌŽƵŐŚŵƵƚƵĂůůLJďĞŶĞĨŝĐŝĂůƉĂƌƚŶĞƌƐŚŝƉƐŽŶƉƌŽŐƌĂŵƐƐƵĐŚ
ĂƐƚŚŝƐŽŶĞ͘
ĚĚŝƚŝŽŶĂůďĞŶĞĨŝƚƐ͗dŚĞƐĞƚƌĂŶƐĨŽƌŵĂƚŝŽŶƉƌŽũĞĐƚƐǁŝůůĚĞŵŽŶƐƚƌĂƚĞĂƚƚƌĂĐƚŝǀĞůŽǁǁĂƚĞƌͲƵƐĞ
ůĂŶĚƐĐĂƉĞƐ͕ǁŚŝĐŚĐĂŶƐƚůŽĐĂůƐƵƉƉŽƌƚĨŽƌǁĂƚĞƌĞĨĨŝĐŝĞŶĐLJƉƌŽŐƌĂŵƐĂŶĚƐĞƌǀĞĂƐĞdžĂŵƉůĞƐ
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ŵĂũŽƌǁĂƚĞƌĚŝƐƚƌŝĐƚƐŝŶ&ŽƌƚŽůůŝŶƐ͘dŚĞƐĞƉƌŽũĞĐƚƐǁŝůůŚĞůƉƚŽŝŵƉƌŽǀĞĨĂŵŝůŝĂƌŝƚLJĂŶĚĐŽŵĨŽƌƚ
ǁŝƚŚůŽǁͲǁĂƚĞƌĂŶĚŶĂƚŝǀĞůĂŶĚƐĐĂƉĞƐ͘dŚĞƉƌŽŐƌĂŵǁŝůůŝŵƉƌŽǀĞǁĂƚĞƌůŝƚĞƌĂĐLJŝŶƚŚĞ
ĐŽŵŵƵŶŝƚLJďLJĞĚƵĐĂƚŝŶŐƉĂƌƚŝĐŝƉĂŶƚƐĂŶĚƌĞůĞǀĂŶƚƐƚĂŬĞŚŽůĚĞƌƐŽŶǁĂƚĞƌƵƐĞ͕ĐůŝŵĂƚĞĐŚĂŶŐĞ͕
ǁĂƚĞƌƌĂƚĞƐ͕ƚŚĞĐŽƐƚͬǀĂůƵĞŽĨǁĂƚĞƌƐĞƌǀŝĐĞ͕ĚƌŽƵŐŚƚƉůĂŶŶŝŶŐ͕ǁĂƚĞƌƐƵƉƉůLJƉůĂŶŶŝŶŐ͕ĂŶĚ
ŵŽƌĞ͘dŚĞƐĞ͞ĂĚĚŝƚŝŽŶĂů͟ďĞŶĞĨŝƚƐĂƌĞƐŝŐŶŝĨŝĐĂŶƚĂƐŵĂŶLJ&ŽƌƚŽůůŝŶƐƌĞƐŝĚĞŶƚƐĂƌĞƚƌĂŶƐƉůĂŶƚƐ
ĨƌŽŵŽƚŚĞƌƉĂƌƚƐŽĨƚŚĞĐŽƵŶƚƌLJĂŶĚĂƌĞƵŶĨĂŵŝůŝĂƌǁŝƚŚĐůŝŵĂƚĞĂŶĚǁĂƚĞƌƌĞƐŽƵƌĐĞƐĐŚĂůůĞŶŐĞƐ
ŝŶƚŚŝƐƌĞŐŝŽŶ͘
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ŽƌŝŐŝŶĂůϭϵϵϮƉůĂŶƐƚĂƚĞĚƚŚĂƚ͞ǁĂƚĞƌŝƐĂůŝŵŝƚĞĚĂŶĚǀŝƚĂůƌĞƐŽƵƌĐĞǁŚŝĐŚŵƵƐƚďĞƵƐĞĚ
ĞĨĨŝĐŝĞŶƚůLJĂŶĚǁŝƐĞůLJ͙ƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨĂĚĚŝƚŝŽŶĂůǁĂƚĞƌĐŽŶƐĞƌǀĂƚŝŽŶƉƌĂĐƚŝĐĞƐǁŝůů
ďĞŶĞĨŝƚƚŚĞŝƚLJŽĨ&ŽƌƚŽůůŝŶƐďLJŚĞůƉŝŶŐƚŽĂƐƐƵƌĞĐŽŶƚŝŶƵĞĚƌĞůŝĂďůĞƐŚŽƌƚͲĂŶĚůŽŶŐͲƚĞƌŵ
ƐƵƉƉůŝĞƐ͙͘͟dŚĞt^DWĚŝƌĞĐƚƐƐƚĂĨĨƚŽĚĞǀĞůŽƉƐƚƌĂƚĞŐŝĞƐƚŽĞŶƐƵƌĞĐĞƌƚĂŝŶůĞǀĞůƐŽĨƐĞƌǀŝĐĞ͕
ŽŶĞďĞŝŶŐƚŽŵĞĞƚĚĞŵĂŶĚƐŝŶĂϭͲŝŶͲϱϬLJĞĂƌĚƌŽƵŐŚƚ͘ƐĚƌŽƵŐŚƚŝƐĞdžƉĞĐƚĞĚƚŽďĞĐŽŵĞŵŽƌĞ
ĨƌĞƋƵĞŶƚĂŶĚͬŽƌƐĞǀĞƌĞ͕hƚŝůŝƚŝĞƐŶĞĞĚƐƚŽƚĂŬĞŽŶŶĞǁƐƚƌĂƚĞŐŝĞƐƚŽƉƌĞƉĂƌĞŽƵƌĐŽŵŵƵŶŝƚLJĨŽƌ
ĂĐŚĂŶŐŝŶŐĐůŝŵĂƚĞ͘dŚĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWůĂŶŝƐĂǀĂŝůĂďůĞŚĞƌĞ͗ĨĐŐŽǀ͘ĐŽŵͬǁĂƚĞƌͲĞĨĨŝĐŝĞŶĐLJͲ
ƉůĂŶ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϵ
dŚĞt W͕ĂƉƉƌŽǀĞĚďLJƚŚĞŽůŽƌĂĚŽtĂƚĞƌŽŶƐĞƌǀĂƚŝŽŶŽĂƌĚĂŶĚŝƚLJŽĨ&ŽƌƚŽůůŝŶƐŝƚLJ
ŽƵŶĐŝůŝŶϮϬϭϲ͕ŽƵƚůŝŶĞƐĨŝǀĞĐƌŝƚŝĐĂůƐƚƌĂƚĞŐŝĞƐƚŽĂĐŚŝĞǀĞƚŚĞŽǀĞƌĂůůŐŽĂůŽĨƌĞĚƵĐŝŶŐŽƵƌ
ƐĞƌǀŝĐĞĂƌĞĂ͛ƐǁĂƚĞƌƵƐĞƚŽϭϯϬŐĂůůŽŶƐƉĞƌĐĂƉŝƚĂƉĞƌĚĂLJ͘dŚŝƐƌĞƋƵŝƌĞƐĂŶϭϭƉĞƌĐĞŶƚƌĞĚƵĐƚŝŽŶ
ĨƌŽŵϮϬϭϱƵƐĞ͘y/WĚŝƌĞĐƚůLJĂĚĚƌĞƐƐĞƐĨŽƵƌ;ƐŚŽǁŶŝŶďŽůĚƚĞdžƚͿŽĨƚŚĞĨŝǀĞĐƌŝƚŝĐĂůƐƚƌĂƚĞŐŝĞƐĂŶĚ
ǁŝůůŝŶĨŽƌŵƚŚĞƌĞŵĂŝŶŝŶŐƐƚƌĂƚĞŐLJĨŽĐƵƐĞĚŽŶŶĞǁĚĞǀĞůŽƉŵĞŶƚ͗
ϭ͘ >ĞǀĞƌĂŐĞĚǀĂŶĐĞĚDĞƚĞƌ&ŽƌƚŽůůŝŶƐĚĂƚĂĂŶĚĐĂƉĂďŝůŝƚŝĞƐ
Ϯ͘ WƌŽŵŽƚĞĂŶĚƐƵƉƉŽƌƚŐƌĞĂƚĞƌŽƵƚĚŽŽƌǁĂƚĞƌĞĨĨŝĐŝĞŶĐLJ
ϯ͘ džƉĂŶĚĐŽŵŵĞƌĐŝĂůĂŶĚŝŶĚƵƐƚƌŝĂůƐƚƌĂƚĞŐŝĞƐ
ϰ͘ /ŶĐƌĞĂƐĞĐŽŵŵƵŶŝƚLJǁĂƚĞƌůŝƚĞƌĂĐLJ
ϱ͘ ŶĐŽƵƌĂŐĞŐƌĞĂƚĞƌŝŶƚĞŐƌĂƚŝŽŶŽĨǁĂƚĞƌĞĨĨŝĐŝĞŶĐLJŝŶƚŽůĂŶĚƵƐĞƉůĂŶŶŝŶŐĂŶĚďƵŝůĚŝŶŐ
ĐŽĚĞƐ
dŚĞƉƌŽƉŽƐĂůƚŽƐƵƉƉŽƌƚy/WŝƐĂĚŝƌĞĐƚƌĞƐƵůƚŽĨŽƵƌǁŽƌŬƚŽĂĚĚƌĞƐƐŽƵƚĚŽŽƌǁĂƚĞƌƵƐĞ;ϮͿĂŶĚ
ǁŽƌŬŵŽƌĞǁŝƚŚĐŽŵŵĞƌĐŝĂůĐƵƐƚŽŵĞƌƐ;ϯͿ͘dŚĞƌĞƐƵůƚƐŽĨƚŚĞƉƌŽƉŽƐĞĚƉƌŽŐƌĂŵǁŝůůĞdžƚĞŶĚ
ďĞLJŽŶĚƚŚĞŝŵŵĞĚŝĂƚĞƉĂƌƚŝĐŝƉĂŶƚƐďLJƐĞƌǀŝŶŐĂƐĚĞŵŽŶƐƚƌĂƚŝŽŶƐĂŶĚƌĞƐŽƵƌĐĞƐƚŽŚĞůƉŽƚŚĞƌƐ
ĂĚĂƉƚtĞƐƚĞƌŶůĂŶĚƐĐĂƉĞƐƚŽĂĐŚĂŶŐŝŶŐĐůŝŵĂƚĞ͕ŝŶĐƌĞĂƐŝŶŐĐŽŵŵƵŶŝƚLJǁĂƚĞƌůŝƚĞƌĂĐLJ;ϰͿ͘
ŽŵŵĞƌĐŝĂůͲƐĐĂůĞůĂŶĚƐĐĂƉĞƚƌĂŶƐĨŽƌŵĂƚŝŽŶƐƚŚƌŽƵŐŚy/WŚĂǀĞƚŚĞƉŽƚĞŶƚŝĂůƚŽƐĂǀĞŵŝůůŝŽŶƐŽĨ
ŐĂůůŽŶƐŽĨǁĂƚĞƌŽǀĞƌƚŚĞůŝĨĞƚŝŵĞŽĨƚŚĞƐĞƉƌŽũĞĐƚƐ͘ĚǀĂŶĐĞĚDĞƚĞƌŝŶŐĂƚĂ;ϭͿŝŶĐŽŶũƵŶĐƚŝŽŶ
ǁŝƚŚƚŚĞ>ĂŶĚƐĐĂƉĞtĂƚĞƌƵĚŐĞƚƉƌŽŐƌĂŵǁŝůůƉƌŽǀŝĚĞǁĂƚĞƌͲƐĂǀŝŶŐƐĚĂƚĂƐƉĞĐŝĨŝĐƚŽĞĂĐŚ
ĂĐĐŽƵŶƚ͘/ŶĨŽƌŵĂƚŝŽŶĂďŽƵƚƚŚĞ>ĂŶĚƐĐĂƉĞtĂƚĞƌƵĚŐĞƚƉƌŽŐƌĂŵĐĂŶďĞĨŽƵŶĚŚĞƌĞĂƚ
ĨĐŐŽǀ͘ĐŽŵͬǁĂƚĞƌͲĞĨĨŝĐŝĞŶĐLJ͘
͘ϭ͘ϯ͘ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝŽŶͶWƌŽũĞĐƚ/ŵƉůĞŵĞŶƚĂƚŝŽŶ;ϭϬƉŽŝŶƚƐͿ
dĂďůĞϮ͘ ƐƚŝŵĂƚĞĚWƌŽũĞĐƚ^ĐŚĞĚƵůĞ
^, h>
DŝůĞƐƚŽŶĞͬdĂƐŬ
dĂƐŬϭ͗ĂůůĨŽƌƉƉůŝĐĂƚŝŽŶƐ
dĂƐŬϮ͗ƉƉůŝĐĂƚŝŽŶƌĞǀŝĞǁĂŶĚ
ƐĞůĞĐƚŝŽŶ
dĂƐŬϯ͗/ŵƉůĞŵĞŶƚĂƚŝŽŶĂŶĚ
DŽŶŝƚŽƌŝŶŐ
dĂƐŬϰ͗WƌŽũĞĐƚZĞǀŝĞǁ͕ŶĂůLJƐŝƐ
ĂŶĚ&ŽůůŽǁͲƵƉ ƵŐͲKĐƚϮϬϮϯEŽǀͲĞĐϮϬϮϯzĞĂƌϭ Year 2
&ĞďͲDĂLJϮϬϮϮ:ƵŶͲƵŐϮϬϮϮ^ĞƉͲKĐƚϮϬϮϮEŽǀͲĞĐϮϬϮϮ:ĂŶͲƉƌϮϬϮϯDĂLJͲ:ƵůϮϬϮϯ
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϭϬ
WĞƌŵŝƚƐ͕ ŶŐŝŶĞĞƌŝŶŐ͕WŽůŝĐŝĞƐ͕ĂŶĚ ŶǀŝƌŽŶŵĞŶƚĂůŽŵƉůŝĂŶĐĞͲhƚŝůŝƚŝĞƐĚŽĞƐŶŽƚĂŶƚŝĐŝƉĂƚĞ
ĂŶLJƉĞƌŵŝƚƌĞƋƵŝƌĞŵĞŶƚƐĂƐĂůůǁŽƌŬǁŝůůďĞĐŽŵƉůĞƚĞĚŽŶƉƌŝǀĂƚĞƉƌŽƉĞƌƚLJŽŶůĂŶĚƐĐĂƉĞƐĂŶĚ
ŝƌƌŝŐĂƚŝŽŶƐLJƐƚĞŵƐ͘hƚŝůŝƚŝĞƐĚŽĞƐŶŽƚĞdžƉĞĐƚĂŶLJĞŶŐŝŶĞĞƌŝŶŐŽƌĚĞƐŝŐŶǁŽƌŬŽŶŝƚƐŽǁŶďĞŚĂůĨ͘
WĂƌƚŝĐŝƉĂŶƚƐŵĂLJƵƚŝůŝnjĞĚĞƐŝŐŶĞƌƐĨŽƌƉƌŽũĞĐƚƐ͘EŽŶĞǁƉŽůŝĐŝĞƐŽƌŵŽĚŝĨŝĐĂƚŝŽŶƐƚŽĞdžŝƐƚŝŶŐ
ƉŽůŝĐŝĞƐĂƌĞƌĞƋƵŝƌĞĚƚŽŝŵƉůĞŵĞŶƚƚŚŝƐƉƌŽŐƌĂŵ͕ŽƚŚĞƌƚŚĂŶƚŚĞ&ŽƌƚŽůůŝŶƐŝƚLJŽƵŶĐŝů͛Ɛ
ĂƉƉƌŽǀĂůĂŶĚĞdžĞĐƵƚŝŽŶŽĨƚŚĞŐƌĂŶƚĂŐƌĞĞŵĞŶƚǁŝƚŚZĞĐůĂŵĂƚŝŽŶ͘ ŶǀŝƌŽŶŵĞŶƚĂůĐŽŵƉůŝĂŶĐĞ
ǁŝůůďĞĐŽŽƌĚŝŶĂƚĞĚǁŝƚŚƚŚĞƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶƵƉŽŶŐƌĂŶƚĂǁĂƌĚ͘
͘ϭ͘ϰ͘ ǀĂůƵĂƚŝŽŶƌŝƚĞƌŝŽŶͶEĞdžƵƐƚŽZĞĐůĂŵĂƚŝŽŶ;ϭϬƉŽŝŶƚƐͿ
dŚĞŽůŽƌĂĚŽͲŝŐdŚŽŵƉƐŽŶWƌŽũĞĐƚ;ͲdͿŝƐĂZĞĐůĂŵĂƚŝŽŶƉƌŽũĞĐƚ͘hƚŝůŝƚŝĞƐŽǁŶƐĂďŽƵƚ
ϭϴ͕ϴϱϱƵŶŝƚƐŽĨͲdǁĂƚĞƌ͘ĞůŝǀĞƌŝĞƐĚĞƉĞŶĚŽŶƚŚĞĂŶŶƵĂůƋƵŽƚĂƐĞƚďLJEŽƌƚŚĞƌŶ
tĂƚĞƌĞĂĐŚLJĞĂƌ͘YƵŽƚĂƐĐĂŶƌĂŶŐĞĨƌŽŵĂŶŶƵĂůLJŝĞůĚƐŽĨϵ͕ϰϬϬĂĐƌĞͲĨĞĞƚƚŽϭϴ͕ϴϬϬĂĐƌĞͲ
ĨĞĞƚ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϭϭ
WZK: dh' d
&ƵŶĚŝŶŐWůĂŶ
hƚŝůŝƚŝĞƐƌĞƋƵĞƐƚƐΨϳϱ͕ϬϬϬĨƌŽŵƚŚĞƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶ͘dŚĞƚŽƚĂůĐŽƐƚŽĨƚŚĞyĞƌŝƐĐĂƉĞ
/ŶĐĞŶƚŝǀĞWƌŽŐƌĂŵĨŽƌϮϬϮϮŝƐΨϭϳϱ͕ϮϬϱ͘
• ΨϳϬ͕ϬϬϬŽĨƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶŵŽŶĞLJǁŝůůďĞƵƐĞĚĨŽƌůĂŶĚƐĐĂƉĞƉƌŽũĞĐƚƌĞďĂƚĞƐ͘
• Ψϱ͕ϬϬϬŽĨƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶŵŽŶĞLJǁŝůůďĞƵƐĞĚĨŽƌ ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚZĞŐƵůĂƚŽƌLJ
ŽŵƉůŝĂŶĐĞ͘
• ZĞĐŝƉŝĞŶƚƐŽĨƚŚĞĨƵŶĚƐƚŚƌŽƵŐŚy/WĂƌĞƌĞƋƵŝƌĞĚƚŽŵĂƚĐŚƚŚĞƌĞďĂƚĞĂŵŽƵŶƚĚŽůůĂƌĨŽƌ
ĚŽůůĂƌĨŽƌĂƚŽƚĂůŽĨΨϳϬ͕ϬϬϬ͘ZĞĐŝƉŝĞŶƚƐǁŝůůƉƌŽǀŝĚĞŝŶǀŽŝĐĞƐƚŽƐŚŽǁĨƵŶĚŝŶŐŵĂƚĐŚ͘
dŚŝƐǁŝůůĐŽŶƐƚŝƚƵƚĞƚŚĞŵĂũŽƌŝƚLJŽĨƚŚĞƉƌŽũĞĐƚ͛ƐĐŽƐƚͲƐŚĂƌĞĐŽŶƚƌŝďƵƚŝŽŶ͘
• hƚŝůŝƚŝĞƐǁŝůůƉƌŽǀŝĚĞΨϮϵ͕ϱϴϬŝŶͲŬŝŶĚƐĞƌǀŝĐĞƐĂƐǁĞůůĂƐΨϲϮϱŝŶŚĂƌĚĐŽƐƚƐĨŽƌƉƌŽũĞĐƚ
ĂĚŵŝŶŝƐƚƌĂƚŝŽŶĨĞĞƐ͘
dŚŝƐƉƌŽŐƌĂŵŚĂƐďĞĞŶŽƉĞƌĂƚŝŶŐƐŝŶĐĞƚŚĞϮϬϮϬƉƌŽŐƌĂŵLJĞĂƌ͘WƌŽũĞĐƚĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ
ϮϬϮϬĂŶĚϮϬϮϭƉƌŽŐƌĂŵLJĞĂƌƐĂƌĞĨƵůůLJĨƵŶĚĞĚĂŶĚƐŚŽƵůĚŶŽƚďĞĐŽŶƐŝĚĞƌĞĚĐŽƐƚƐŝŶĐƵƌƌĞĚ
ƉƌŝŽƌƚŽƚŚĞĂǁĂƌĚŽĨƚŚŝƐŐƌĂŶƚ͘EŽĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚtĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞ
tĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬƉƉůŝĐĂƚŝŽŶŚĂǀĞďĞĞŶŝŶĐƵƌƌĞĚƚŽĚĂƚĞ͘
ƵĚŐĞƚWƌŽƉŽƐĂů
^KhZ DKhEd
ŽƐƚƐƚŽďĞƌĞŝŵďƵƌƐĞĚǁŝƚŚƚŚĞƌĞƋƵĞƐƚĞĚ&ĞĚĞƌĂůĨƵŶĚŝŶŐ Ψϳϱ͕ϬϬϬ
ŽƐƚƐƚŽďĞƉĂŝĚďLJƚŚĞĂƉƉůŝĐĂƚŝŽŶ;ŝƚLJŽĨ&ŽƌƚŽůůŝŶƐͿ ΨϯϬ͕ϮϬϱ
sĂůƵĞŽĨƚŚŝƌĚͲƉĂƌƚLJĐŽŶƚƌŝďƵƚŝŽŶƐ ΨϳϬ͕ϬϬϬ
dKd>WZK: dK^dΨϭϳϱ͕ϮϬϱ
dĂďůĞϯ͘dŽƚĂůWƌŽũĞĐƚŽƐƚ
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϭϮ
dĂďůĞϰ͘ƵĚŐĞƚWƌŽƉŽƐĂů
ƵĚŐĞƚEĂƌƌĂƚŝǀĞ
ĞƚĂŝůĞĚŝŶƚŚĞdĞĐŚŶŝĐĂůWƌŽũĞĐƚĞƐĐƌŝƉƚŝŽŶƚŚĞƌĞĂƌĞĨŽƵƌŵĂũŽƌƉŚĂƐĞƐĨŽƌƚŚŝƐƉƌŽŐƌĂŵ͗
WĂƌƚŝĐŝƉĂŶƚŽŽƌĚŝŶĂƚŝŽŶĂŶĚĂůůĨŽƌƉƉůŝĐĂƚŝŽŶƐ;WŚĂƐĞϭͿ͖ƉƉůŝĐĂƚŝŽŶZĞǀŝĞǁĂŶĚWƌŽũĞĐƚ
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&ŽůůŽǁͲƵƉ;WŚĂƐĞϰͿ͘
^ĂůĂƌŝĞƐĂŶĚtĂŐĞƐ
WƌŽŐƌĂŵDĂŶĂŐĞƌʹ<ĂƚŝĞŽůůŝŶƐ
ͻ/ŶƉŚĂƐĞϭ͕ƚŚĞWƌŽŐƌĂŵDĂŶĂŐĞƌǁŝůůĨŝŶĂůŝnjĞĂƉƉůŝĐĂƚŝŽŶƉƌŽĐĞƐƐĞƐ͕ĨŝĞůĚƉĂƌƚŝĐŝƉĂŶƚ
ƋƵĞƐƚŝŽŶƐĂƐŶĞĞĚĞĚ͕ĂŶĚĐŽŶĚƵĐƚŽŶͲƐŝƚĞĐŽŶƐƵůƚĂƚŝŽŶŵĞĞƚŝŶŐƐǁŝƚŚƉŽƚĞŶƚŝĂůĂƉƉůŝĐĂŶƚƐ͘
ͻ/ŶƉŚĂƐĞϮ͕ƚŚĞWƌŽŐƌĂŵDĂŶĂŐĞƌǁŝůůƌĞǀŝĞǁĂŶĚƐĐŽƌĞĂƉƉůŝĐĂƚŝŽŶƐĂŶĚĂƚƚĞŶĚĂŶĚĐŽŶƐƵůƚ
ĨŽƌƵƐƚŽŵĞƌŐƌĞĞŵĞŶƚŵĞĞƚŝŶŐƐ͘KƚŚĞƌŝƚĞŵƐŝŶĐůƵĚĞǁŽƌŬŝŶŐŽŶŝŶƚĞƌŝŵƉƌŽŐƌĂŵƌĞƉŽƌƚŝŶŐ͘
ͻ/ŶƉŚĂƐĞϯ͕ƚŚĞWƌŽŐƌĂŵDĂŶĂŐĞƌǁŝůůƉĞƌĨŽƌŵŽŶͲƐŝƚĞǀŝƐŝƚƐĂƐĚŝĐƚĂƚĞĚďLJƵƐƚŽŵĞƌ
ŐƌĞĞŵĞŶƚƐĂŶĚŽĨĨĞƌƐƵƉƉŽƌƚƚŚƌŽƵŐŚ>ĂŶĚƐĐĂƉĞtĂƚĞƌƵĚŐĞƚĂŶĚDLJtĂƚĞƌƉƌŽŐƌĂŵƐ͘dŚĞ
WƌŽŐƌĂŵDĂŶĂŐĞƌǁŝůůƌĞǀŝĞǁĐƵƐƚŽŵĞƌƌĞƉŽƌƚƐĂŶĚĐŽŵŵĞŶƚŽŶĨĞĂƐŝďŝůŝƚLJŽĨĞƐƚĂďůŝƐŚŵĞŶƚ
ĂŶĚŵĂŝŶƚĞŶĂŶĐĞƉůĂŶƐ͘
ͻ/ŶƉŚĂƐĞϰ͕ƚŚĞWƌŽŐƌĂŵDĂŶĂŐĞƌǁŝůůĐŽŶĚƵĐƚĞdžŝƚǀŝƐŝƚƐĂŶĚǁŽƌŬŽŶĨŝŶĂůƌĞƉŽƌƚŝŶŐĨŽƌ
ZĞĐůĂŵĂƚŝŽŶŝŶĐůƵĚŝŶŐǁĂƚĞƌƐĂǀĞĚ͘
WƌŽŐƌĂŵDĂŶĂŐĞƌƚŽƚĂůŚŽƵƌƐ͗ϲϬϬ
dŽƚĂůWƌŽŐƌĂŵDĂŶĂŐĞƌĐŽƐƚсΨϭϳ͕ϰϬϬ
ΨͬhE/d YƵĂŶƚŝƚLJ
WƌŽŐƌĂŵDĂŶĂŐĞƌ Ϯϵ ϲϬϬ ŚŽƵƌƐ ϭϳ͕ϰϬϬ͘ϬϬΨ
WƌŽŐƌĂŵŶĂůLJƐƚ Ϯϵ ϯϬϬ ŚŽƵƌƐ ϴ͕ϳϬϬ͘ϬϬΨ
DĂƌŬĞƚŝŶŐ^ƉĞĐŝĂůŝƐƚ Ϯϵ ϭϮϬ ŚŽƵƌƐ ϯ͕ϰϴϬ͘ϬϬΨ
'ƌĂŶƚĂƉƉůŝĐĂƚŝŽŶƉƌŽŐƌĂŵ ϲϮϱ ϭ ƉƌŽŐƌĂŵĨĞĞ ϲϮϱ͘ϬϬΨ
ZĞďĂƚĞƐ ϳϬϬϬϬ ϭ ƚŽƚĂůƌĞďĂƚĞƐ ϳϬ͕ϬϬϬ͘ϬϬΨ
DĂƚĐŚĨƵŶĚŝŶŐĨƌŽŵƉĂƌƚŝĐŝƉĂŶƚƐ ϳϬϬϬϬ ϭ ƚŽƚĂůŵĂƚĐŚ ϳϬ͕ϬϬϬ͘ϬϬΨ
ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚƌĞŐƵůĂƚŽƌLJĐŽŵƉůŝĂŶĐĞĐŽƐƚƐƉĞƌĨŽƌ ϱϬϬϬ ϭ ĐŽƐƚŽĨƌĞǀŝĞǁ ϱ͕ϬϬϬ͘ϬϬΨ
ϭϳϱ͕ϮϬϱ͘ϬϬΨ
ϭϳϱ͕ϮϬϱ͘ϬϬΨdKd> ^d/Dd WZK: dK^d^
dKd>/Z dK^d^
^ƵƉƉůŝĞƐĂŶĚDĂƚĞƌŝĂůƐ
dŚŝƌĚͲWĂƌƚLJŽŶƚƌŝďƵƚŝŽŶƐ
ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚZĞŐƵůĂƚŽƌLJŽŵƉůŝĂŶĐĞŽƐƚƐ
h' d/d D ^Z/Wd/KE YƵĂŶƚŝƚLJ
dLJƉĞ dKd>K^dKDWhdd/KE
^ĂůĂƌŝĞƐĂŶĚtĂŐĞƐ
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϭϯ
WƌŽŐƌĂŵŶĂůLJƐƚʹ<ĞůƐĞLJŽĂŶ
ͻ/ŶƉŚĂƐĞϭ͕ƚŚĞŶĂůLJƐƚǁŝůůĂƐƐŝƐƚƚŚĞWƌŽŐƌĂŵDĂŶĂŐĞƌŝŶĨŝŶĂůŝnjŝŶŐƚŚĞĂƉƉůŝĐĂƚŝŽŶƉƌŽĐĞƐƐ
ĂŶĚĨŝĞůĚŝŶŐĐƵƐƚŽŵĞƌƋƵĞƐƚŝŽŶƐĂƐŶĞĞĚĞĚ͘dŚĞ^ƉĞĐŝĂůŝƐƚǁŝůůĂůƐŽƐĞƚƵƉƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝǀĞ
ƉƌŽĐĞƐƐĞƐŶĞĐĞƐƐĂƌLJĨŽƌƌĞďĂƚĞƉƌŽĐĞƐƐŝŶŐĂŶĚƉƌŽǀŝĚĞĞĚƵĐĂƚŝŽŶĂůŵĂƚĞƌŝĂůƐƚŽĐŽŵŵĞƌĐŝĂů
ĐƵƐƚŽŵĞƌƐ͘
ͻ/ŶƉŚĂƐĞϮ͕ƚŚĞŶĂůLJƐƚǁŝůůĂƐƐŝƐƚƚŚĞWƌŽŐƌĂŵDĂŶĂŐĞƌŝŶƌĞǀŝĞǁŝŶŐĂƉƉůŝĐĂƚŝŽŶƐ͘dŚĞŶĂůLJƐƚ
ǁŝůůĂƚƚĞŶĚŝŶŝƚŝĂůƵƐƚŽŵĞƌŐƌĞĞŵĞŶƚDĞĞƚŝŶŐƐ͕ƐŝƚĞǀŝƐŝƚƐĂŶĚǁŝůůĚŽĂůůĚĂƚĂƚƌĂĐŬŝŶŐ͘
ͻ/ŶƉŚĂƐĞϯ͕ƚŚĞŶĂůLJƐƚǁŝůůŽĨĨĞƌƐƵƉƉŽƌƚĂŶĚĐŽůůĞĐƚŶĞĐĞƐƐĂƌLJĚĂƚĂĂŶĚƉŚŽƚŽƐ͘dŚĞŶĂůLJƐƚ
ǁŝůůĨŝůĞĂůůĐƵƐƚŽŵĞƌĚĂƚĂ͘
ͻ/ŶƉŚĂƐĞϰ͕ƚŚĞŶĂůLJƐƚǁŝůůĂƐƐŝƐƚŝŶĞdžŝƚŵĞĞƚŝŶŐƐ͕ƌĞƉŽƌƚŝŶŐ͕ĂŶĚĐŽůůĞĐƚŝŽŶŽĨĨŝŶĂůƉĂƉĞƌǁŽƌŬ
ŶĞĞĚĞĚƚŽƉƌŽĐĞƐƐƌĞďĂƚĞƐ͘
WƌŽŐƌĂŵŶĂůLJƐƚƚŽƚĂůƉƌŽũĞĐƚŚŽƵƌƐ͗ϯϬϬ
dŽƚĂůWƌŽŐƌĂŵŶĂůLJƐƚĐŽƐƚ͗Ψϴ͕ϳϬϬ
DĂƌŬĞƚŝŶŐ^ƉĞĐŝĂůŝƐƚ
dŚĞŝŶͲŚŽƵƐĞDĂƌŬĞƚŝŶŐ^ƉĞĐŝĂůŝƐƚǁŝůůĚĞůŝǀĞƌĂůůĐŽŵŵƵŶŝĐĂƚŝŽŶĂŶĚŽƵƚƌĞĂĐŚĨŽƌƚŚĞƉƌŽŐƌĂŵ
ǀŝĂǁĞďƐŝƚĞ͕ĞŵĂŝůĂŶĚƉƌŝŶƚƉƵďůŝĐĂƚŝŽŶƐ͘
tĂƚĞƌŽŶƐĞƌǀĂƚŝŽŶ/ŶƚĞƌŶƚŽƚĂůƉƌŽũĞĐƚŚŽƵƌƐ͗ϭϮϬ
dŽƚĂůtĂƚĞƌŽŶƐĞƌǀĂƚŝŽŶ/ŶƚĞƌŶĐŽƐƚ͗Ψϯ͕ϰϴϬ
DĂƚĞƌŝĂůƐĂŶĚ^ƵƉƉůŝĞƐ
• hƚŝůŝƚŝĞƐǁŝůůƵƐĞƚŚĞŐƌĂŶƚƉůĂƚĨŽƌŵ͞ŽŽŵ'ƌĂŶƚƐ͟ƚŽĐŽůůĞĐƚĂƉƉůŝĐĂƚŝŽŶƐ͕ƉƌŽũĞĐƚĚĂƚĂ͕
ĞdžƉĞŶƐĞĚŽĐƵŵĞŶƚĂƚŝŽŶĂŶĚƌĞƉŽƌƚƐ͘dŚĞĐŽƐƚŽĨĂŶĞǁƉƌŽŐƌĂŵLJĞĂƌŝƐΨϲϮϱ͘
• hƚŝůŝƚŝĞƐƉůĂŶƐƚŽŝƐƐƵĞΨϳϬ͕ϬϬϬŝŶƉƌŽũĞĐƚƌĞďĂƚĞƐƚŽĞůŝŐŝďůĞƉĂƌƚŝĐŝƉĂŶƚƐŝŶϮϬϮϮ͘
dŚŝƌĚͲWĂƌƚLJ/ŶͲ<ŝŶĚŽŶƚƌŝďƵƚŝŽŶƐ
• ůŝŐŝďůĞƉƌŽũĞĐƚƐǁŝůůďĞƌĞƋƵŝƌĞĚƚŽƐŚŽǁŵĂƚĐŚĨƵŶĚŝŶŐĞƋƵĂůƚŽƚŚĞĂŵŽƵŶƚŝƐƐƵĞĚƚŚƌŽƵŐŚ
y/W͘DĂƚĐŚ&ƵŶĚŝŶŐǁŝůůĞƋƵĂůĂŵŝŶŝŵƵŵŽĨΨϳϬ͕ϬϬϬ͕ƚŚĞƚŽƚĂůƌĞďĂƚĞĂŵŽƵŶƚĨŽƌϮϬϮϮ͘
ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚZĞŐƵůĂƚŽƌLJŽŵƉůŝĂŶĐĞŽƐƚƐ
• ĂƐĞĚŽŶƚŚĞ ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚZĞŐƵůĂƚŽƌLJŽŵƉůŝĂŶĐĞĂƐƐĞƐƐŵĞŶƚƉĞƌĨŽƌŵĞĚďLJƚŚĞůŽĐĂů
KZŽĨĨŝĐĞƉĞƌŐƌĂŶƚZϭϵWϬϬϭϲϵĂǁĂƌĚĞĚƚŽƚŚĞŝƚLJŽĨ&ŽƌƚŽůůŝŶƐ͕ƚŚĞĐŽƐƚĨŽƌ
ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚZĞŐƵůĂƚŽƌLJŽŵƉůŝĂŶĐĞĞǀĂůƵĂƚŝŽŶŝƐΨϱ͕ϬϬϬ͘^ĞĞĂƚƚĂĐŚĞĚĨŽƌƉĂƐƚ
ĞǀĂůƵĂƚŝŽŶďLJWĂƚƌŝĐŬDĐƵƐŬĞƌ͕'ƌĂŶƚƐKĨĨŝĐĞƌdĞĐŚŶŝĐĂůZĞƉƌĞƐĞŶƚĂƚŝǀĞ͘
tĂƚĞƌ^DZd'ƌĂŶƚƐ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐĨŽƌ&zϮϬϮϭʹZϮϭ^ϬϬϯϬϬ
ϭϰ
Es/ZKED Ed>Eh>dhZ>Z ^KhZ ^KDW>/E
WƌŽũĞĐƚŝŵƉĂĐƚƚŽƐƵƌƌŽƵŶĚŝŶŐĞŶǀŝƌŽŶŵĞŶƚͲůůǁŽƌŬǁŝůůďĞĐŽŵƉůĞƚĞĚŽŶƉƌŝǀĂƚĞƉƌŽƉĞƌƚLJ
ůĂŶĚƐĐĂƉĞƐĂŶĚŝƌƌŝŐĂƚŝŽŶƐLJƐƚĞŵƐ͘^ŽŵĞĞĂƌƚŚͲĚŝƐƚƵƌďŝŶŐǁŽƌŬǁŝůůŝŶĐůƵĚĞǁĂƚĞƌĞĚĂŶĚ
ŵĂŝŶƚĂŝŶĞĚƚƵƌĨͲŐƌĂƐƐĞƐďĞŝŶŐƌĞƉůĂĐĞĚǁŝƚŚůŽǁͲŽƌŶŽͲǁĂƚĞƌͲƵƐĞůĂŶĚƐĐĂƉŝŶŐ͕ĂƐǁĞůůĂƐ
ŵŽĚŝĨLJŝŶŐŽƌƌĞƉůĂĐŝŶŐŝƌƌŝŐĂƚŝŽŶƐLJƐƚĞŵƐƚŽĂĐĐŽŵŵŽĚĂƚĞŶĞǁůŽǁͲǁĂƚĞƌƵƐĞůĂŶĚƐĐĂƉĞƐ͘
WƌŽũĞĐƚ/ŵƉĂĐƚƚŽƚŚƌĞĂƚĞŶĞĚŽƌĞŶĚĂŶŐĞƌĞĚƐƉĞĐŝĞƐͲtŚŝůĞƚŚĞƌĞŝƐŶŽĐƌŝƚŝĐĂůŚĂďŝƚĂƚŝŶƚŚĞ
ƉƌŽũĞĐƚ͛ƐĂƌĞĂ͕ĂƌĞĂƐĂůŽŶŐƚŚĞWŽƵĚƌĞZŝǀĞƌ͕ŽŶĞŽĨŽƵƌƚǁŽƉƌŝŵĂƌLJƐŽƵƌĐĞƐŽĨǁĂƚĞƌ͕ŝƐĂ
ĐƌŝƚŝĐĂůŚĂďŝƚĂƚĨŽƌƚŚĞWƌĞďůĞ͛ƐDĞĂĚŽǁ:ƵŵƉŝŶŐDŽƵƐĞ͘ĞĐƌĞĂƐŝŶŐĚĞŵĂŶĚĂůŽŶŐƌĞĂĐŚĞƐŽĨ
ƚŚĞƌŝǀĞƌŵĂLJŚĂǀĞŝŶĚŝƌĞĐƚŚĂďŝƚĂƚďĞŶĞĨŝƚƐĨŽƌƚŚĞŵŽƵƐĞ͘
WƌŽũĞĐƚ/ŵƉĂĐƚŽŶǁĞƚůĂŶĚƐĂŶĚƐƵƌĨĂĐĞǁĂƚĞƌƐͲ,ŽƌƐĞƚŽŽƚŚZĞƐĞƌǀŽŝƌĂŶĚƚŚĞWŽƵĚƌĞZŝǀĞƌ
ďŽƚŚĨĂůůƵŶĚĞƌtũƵƌŝƐĚŝĐƚŝŽŶĂƐ͞tĂƚĞƌƐŽĨƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͘͟tŚŝůĞƚŚĞƉƌŽũĞĐƚǁŝůůŽĐĐƵƌ
ŽŶƉƌŝǀĂƚĞƉƌŽƉĞƌƚLJ͕ƚŚĞƌĞŵĂLJďĞŝŶĚŝƌĞĐƚďĞŶĞĨŝƚƐŽĨďLJƌĞĚƵĐŝŶŐůŽŶŐͲƚĞƌŵĚĞŵĂŶĚŽŶƚŚĞƐĞ
ƐƵƌĨĂĐĞǁĂƚĞƌƐŽƵƌĐĞƐ͘
tŚĞŶǁĂƐƚŚĞǁĂƚĞƌĚĞůŝǀĞƌLJƐLJƐƚĞŵĐŽŶƐƚƌƵĐƚĞĚ͍ͲdŚĞĨŝƌƐƚǁĂƚĞƌǁŽƌŬƐǁĂƐďƵŝůƚŝŶϭϴϴϯ͘
WƵďůŝĐtŽƌŬƐǁĂƚĞƌĚĞƉĂƌƚŵĞŶƚǁĂƐĞƐƚĂďůŝƐŚĞĚŝŶƚŚĞĞĂƌůLJϭϵϬϬƐ͕ĂĨƚĞƌŽďƚĂŝŶŝŶŐƐĞŶŝŽƌǁĂƚĞƌ
ƌŝŐŚƚƐŽŶƚŚĞWŽƵĚƌĞZŝǀĞƌ͕ĞdžƉĂŶĚŝŶŐƚŚĞƐLJƐƚĞŵ͘/ŶϭϵϯϴƚŚĞĞƉĂƌƚŵĞŶƚŽĨhƚŝůŝƚŝĞƐǁĂƐ
ĐƌĞĂƚĞĚ͕ĂŶĚƚŚĞĚĞůŝǀĞƌLJƐLJƐƚĞŵŚĂƐĐŽŶƚŝŶƵĞĚƚŽŐƌŽǁƚŽŵĞĞƚƚŚĞƉŽƉƵůĂƚŝŽŶ͛ƐĚĞŵĂŶĚĂƐ
ŶĞĞĚĞĚ͘
WƌŽũĞĐƚ/ŵƉĂĐƚŽŶŝƌƌŝŐĂƚŝŽŶƐLJƐƚĞŵƐͲĞƉĞŶĚŝŶŐŽŶƚŚĞƉƌŽũĞĐƚ͕ŵŽĚŝĨŝĐĂƚŝŽŶƐƚŽƉƌŝǀĂƚĞ
ƉƌŽƉĞƌƚLJŝƌƌŝŐĂƚŝŽŶƐLJƐƚĞŵƐǁŝůůďĞŶĞĞĚĞĚƚŽĂĐĐŽŵŵŽĚĂƚĞƚŚĞŶĞǁůŽǁͲŽƌŶŽͲǁĂƚĞƌͲƵƐĞ
ůĂŶĚƐĐĂƉŝŶŐ͘dŚĞƌĞĂƌĞŶŽƉůĂŶŶĞĚŵŽĚŝĨŝĐĂƚŝŽŶƐƚŽƚŚĞhƚŝůŝƚŝĞƐ͛ǁĂƚĞƌƐLJƐƚĞŵ͘
WƌŽũĞĐƚ/ŵƉĂĐƚŽŶ,ŝƐƚŽƌŝĐWůĂĐĞƐͲdŚĞƌĞĂƌĞŵƵůƚŝƉůĞďƵŝůĚŝŶŐƐĂŶĚƐŝƚĞƐƌĞŐŝƐƚĞƌĞĚŽŶƚŚĞ
EĂƚŝŽŶĂůZĞŐŝƐƚĞƌŽĨ,ŝƐƚŽƌŝĐWůĂĐĞƐǁŝƚŚŝŶƚŚĞhƚŝůŝƚŝĞƐ͛ƐĞƌǀŝĐĞĂƌĞĂ͕ŚŽǁĞǀĞƌƉƌŽũĞĐƚƐǁŝůůŶŽƚ
ŝŵƉĂĐƚƚŚĞƐĞƐŝƚĞƐ͘
WƌŽũĞĐƚ/ŵƉĂĐƚŽŶ<ŶŽǁŶƌĐŚĞŽůŽŐŝĐĂů^ŝƚĞƐͲdŚĞƌĞĂƌĞŶŽŬŶŽǁŶĂƌĐŚĞŽůŽŐŝĐĂůƐŝƚĞƐŝŶƚŚĞ
ƉƌŽũĞĐƚĂƌĞĂ͘
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hƚŝůŝƚŝĞƐ͛ĐƵƐƚŽŵĞƌĂŶĚǁŝůůŶŽƚŚĂǀĞĂŶLJĚŝƐƉƌŽƉŽƌƚŝŽŶĂƚĞůLJŚŝŐŚĂŶĚĂĚǀĞƌƐĞĞĨĨĞĐƚŽŶůŽǁ
ŝŶĐŽŵĞŽƌŵŝŶŽƌŝƚLJƉŽƉƵůĂƚŝŽŶƐ
WƌŽũĞĐƚ/ŵƉĂĐƚŽŶ^ĂĐƌĞĚ^ŝƚĞŽƌdƌŝďĂů>ĂŶĚƐͲdŚĞƉƌŽũĞĐƚǁŝůůŚĂǀĞŶŽŝŵƉĂĐƚŽŶ/ŶĚŝĂŶƐĂĐƌĞĚ
ƐŝƚĞƐŽƌƚƌŝďĂůůĂŶĚƐ͘
WƌŽũĞĐƚ/ŵƉĂĐƚŽŶƚŚĞƐƉƌĞĂĚŽĨŶŽdžŝŽƵƐǁĞĞĚƐŽƌŶŽŶͲŶĂƚŝǀĞŝŶǀĂƐŝǀĞƐƉĞĐŝĞƐͲdŚĞƉƌŽũĞĐƚ
ǁŝůůŽŶůLJĂůůŽǁŝŶƐƚĂůůĂƚŝŽŶŽĨƌĞŐŝŽŶĂůůLJĂĚĂƉƚĞĚŽƌŶĂƚŝǀĞƉůĂŶƚƐ͘^ƉƌĞĂĚŽĨŶŽdžŝŽƵƐǁĞĞĚƐĂŶĚ
ŶŽŶͲŶĂƚŝǀĞŝŶǀĂƐŝǀĞƐƉĞĐŝĞƐŝƐƉƌŽŚŝďŝƚĞĚďLJ&ŽƌƚŽůůŝŶƐ>ĂŶĚͲhƐĞŽĚĞĂŶĚǁŝůůďĞĨƵƌƚŚĞƌ
ĞŶĨŽƌĐĞĚƚŚƌŽƵŐŚƉƌŽũĞĐƚDŽŶŝƚŽƌŝŶŐWůĂŶƐ͕ĂŶĚƉƌŽũĞĐƚĚĞƐŝŐŶ;Ğ͘Ő͘ŵƵůĐŚŝŶŐͿ͘
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ƉƌŽƉĞƌƚLJŽŶůĂŶĚƐĐĂƉĞƐĂŶĚŝƌƌŝŐĂƚŝŽŶƐLJƐƚĞŵƐ͘
> dd Z^K&WZK: d^hWWKZd
>ĞƚƚĞƌƐŽĨƉƌŽũĞĐƚƐƵƉƉŽƌƚĨƌŽŵƚŚĞĨŽůůŽǁŝŶŐĞŶƚŝƚŝĞƐĂƌĞŝŶĐůƵĚĞĚŝŶƉƉĞŶĚŝdžͬƚƚĂĐŚŵĞŶƚͺͺ͗
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ƚŽƚŚĞŽƉƉŽƌƚƵŶŝƚŝĞƐĂŶĚǁĂƚĞƌƐĂǀŝŶŐƐĂĨĨŽƌĚĞĚƚŽƚŚĞŵƚŚƌŽƵŐŚy/WŝŶϮϬϮϬ͘^ƵƐĂŶ
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K&&//>Z ^K>hd/KE
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ďĞƉƌŽǀŝĚĞĚǁŝƚŚŝŶϯϬĚĂLJƐŽĨƚŚĞĂƉƉůŝĐĂƚŝŽŶĚĞĂĚůŝŶĞ͘
hE/Yh Ed/dz/ Ed/&/ Z
ϬϳϴϯϲϮϱϵϳ
^ƵƐĂŶ'ŝůďĞƌƚ
ϱϬϯϬ^ĂĨĨƌŽŶŽƵƌƚ
&ŽƌƚŽůůŝŶƐ͕KϴϬϱϮϱ
ƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶ
&ŝŶĂŶĐŝĂůƐƐŝƐƚĂŶĐĞKƉĞƌĂƚŝŽŶƐ
W͘K͘ŽdžϮϱϬϬϳD^͗ϴϰͲϮϳϴϭϱ
ĞŶǀĞƌ͕KϴϬϮϮϱ
ĞĂƌhŶŝƚĞĚ^ƚĂƚĞƐƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶtĂƚĞƌ^DZd'ƌĂŶƚŽĂƌĚDĞŵďĞƌƐ͗
dŚĞKĂŬƌŝĚŐĞsŝůůĂŐĞs//,ŽŵĞŽǁŶĞƌ͛ƐƐƐŽĐŝĂƚŝŽŶĂŶĚŝƚƐƉĂƌƚŶĞƌƐĨƵůůLJƐƵƉƉŽƌƚƚŚĞŝƚLJŽĨ&ŽƌƚŽůůŝŶƐ͛ĂƉƉůŝĐĂƚŝŽŶƚŽ
ƚŚĞƵƌĞĂƵŽĨZĞĐůĂŵĂƚŝŽŶtĂƚĞƌ^DZd'ƌĂŶƚ͗^ŵĂůůͲ^ĐĂůĞtĂƚĞƌ ĨĨŝĐŝĞŶĐLJWƌŽũĞĐƚƐŐƌĂŶƚĨŽƌƚŚĞ&ŝƐĐĂůzĞĂƌϮϬϮϭ͘
KƵƌ,KĂŶĚƉĂƌƚŶĞƌƐ;KĂŬƌŝĚŐĞsŝůůĂŐĞs///,KĂŶĚƚŚĞKĂŬƌŝĚŐĞsŝůůĂŐĞƵƐŝŶĞƐƐWĂƌŬͿŽǁŶĂϭϬ͘ϭͲĂĐƌĞĚĞƚĞŶƚŝŽŶ
ďĂƐŝŶǁŚŝĐŚŚĂƐďĞĞŶĚĞǀĞůŽƉĞĚĂƐĂƉĂƌŬ͘/ŶϮϬϭϴǁĞǁĞƌĞŶŽƚŝĨŝĞĚƚŚĂƚŽǀĞƌĂůůŽƚŵĞŶƚĨĞĞƐǁŽƵůĚďĞŐŝŶƚŽďĞ
ĐŚĂƌŐĞĚƚŽŽƵƌǁĂƚĞƌƵƐĂŐĞĂŶĚĐŽƵůĚƌĞƐƵůƚŝŶĂĚĚŝƚŝŽŶĂůĂŶŶƵĂůĐŽƐƚƐŽĨĂƉƉƌŽdžŝŵĂƚĞůLJΨϭϴ͕ϬϬϬ͘ƉƉĂƌĞŶƚůLJ͕ƚŚĞ
ĚĞǀĞůŽƉĞƌŝŶƐƚĂůůĞĚĂŶƵŶĚĞƌƐŝnjĞĚƚĂƉϯϬLJĞĂƌƐĂŐŽ͘
tĞŝŶǀĞƐƚŝŐĂƚĞĚŽƉƚŝŽŶƐĂŶĚƐƵƌǀĞLJĞĚĂůůƌĞƐŝĚĞŶƚƐĂŶĚƚŚĞďƵƐŝŶĞƐƐƉĂƌŬĂƐƚŽǁŚĂƚƐŽůƵƚŝŽŶƐƚŚĞLJǁŽƵůĚƐƵƉƉŽƌƚĂŶĚ
ĚĞĐŝĚĞĚƚŚĂƚǁĞǁŽƵůĚĐŽŶǀĞƌƚĂƉŽƌƚŝŽŶŽĨƚŚĞƉĂƌŬŝŶƚŽŶĂƚŝǀĞŐƌĂƐƐĞƐĂŶĚdžĞƌŝĐƉůĂŶƚďĞĚƐ͘ƐǁĞĞƐƚŝŵĂƚĞĚŚŽǁ
ŵƵĐŚďůƵĞŐƌĂƐƐƚƵƌĨŶĞĞĚĞĚƚŽďĞĐŽŶǀĞƌƚĞĚĂŶĚƚŚĞĐŽƐƚŽĨĚŽŝŶŐĂĐŽŶǀĞƌƐŝŽŶ͕ǁĞƋƵŝĐŬůLJƌĞĂůŝnjĞĚƚŚĂƚŝƚǁĂƐĂŶ
ĞdžƉĞŶƐŝǀĞƚĂƐŬ͕ĞƐƉĞĐŝĂůůLJĂƐǁĞŚĂĚƚŽĚĞĂůǁŝƚŚĂϯϬLJĞĂƌŽůĚŝƌƌŝŐĂƚŝŽŶƐLJƐƚĞŵƚŚĂƚǁŽƵůĚƌĞƋƵŝƌĞŵĂŶLJĐŚĂŶŐĞƐƚŽ
ĂĐĐŽŵŵŽĚĂƚĞƚĞŵƉŽƌĂƌLJŝƌƌŝŐĂƚŝŽŶŽĨŶĞǁŶĂƚŝǀĞŐƌĂƐƐĞƐĂŶĚŶĞǁĚƌŝƉůŝŶĞƐƚŽǁĂƚĞƌƚƌĞĞƐĂŶĚƐŚƌƵďƐŝŶƚŚĞĐŽŶǀĞƌƐŝŽŶ
ĂƌĞĂƐ͘ ǀĞŶƚŚŽƵŐŚĐŽŶǀĞƌƚŝŶŐƚƵƌĨǁŽƵůĚƐĂǀĞǁĂƚĞƌĂŶĚŵŽŶĞLJŝŶƚŚĞůŽŶŐƌƵŶŝƚǁĂƐŐŽŝŶŐƚŽďĞĚŝĨĨŝĐƵůƚƚŽĐŽŶǀŝŶĐĞ
ŚŽŵĞŽǁŶĞƌƐĂŶĚƚŚĞďƵƐŝŶĞƐƐƉĂƌŬƚŽŝŶǀĞƐƚƐŽŵƵĐŚƚŽŐĞƚŝƚĚŽŶĞĂŶĚƚŚĂƚƐƉƌĞĂĚŝŶŐŽƵƚƚŚĞƉƌŽũĞĐƚŽǀĞƌŵƵůƚŝƉůĞ
LJĞĂƌƐǁĂƐƵŶĚĞƐŝƌĂďůĞĂƐŝƚǁŽƵůĚƚĂŬĞƐĞǀĞƌĂůLJĞĂƌƐĂŶĚƚŚĞĐŽŶǀĞƌƐŝŽŶĂƌĞĂƐǁŽƵůĚůŽŽŬƉƌĞƚƚLJĂǁĨƵůĚƵƌŝŶŐƚŚĞ
ƉƌŽĐĞƐƐ͘tĞďĞŐĂŶƚŽƐĞĂƌĐŚĨŽƌŐƌĂŶƚŵŽŶĞLJ͘
tĞǁĞƌĞĨŽƌƚƵŶĂƚĞƚŽƌĞĐĞŝǀĞĂŐƌĂŶƚŝŶϮϬϭϵƚŽĐŽŶǀĞƌƚϭ͘ϰĂĐƌĞƐŽĨďůƵĞŐƌĂƐƐƚŽŶĂƚŝǀĞŐƌĂƐƐĞƐĨƌŽŵEŽƌƚŚĞƌŶtĂƚĞƌ͘
,ŽǁĞǀĞƌ͕ŽƵƌĐĂůĐƵůĂƚŝŽŶƐĂŶĚƚŚŽƐĞŽĨƚŚĞĐŝƚLJ͛ƐƵƚŝůŝƚLJŐƌŽƵƉ͕ŝŶĚŝĐĂƚĞĚƚŚĂƚǁĞǁŽƵůĚƐƚŝůůůŝŬĞůLJĐŽŵĞŝŶŽǀĞƌŽƵƌ
ĂůůŽƚŵĞŶƚŝŶĨƵƚƵƌĞLJĞĂƌƐŝĨǁĞĚŝĚŶŽƚĐŽŶǀĞƌƚŵŽƌĞĂĐƌĞĂŐĞ͘WůƵƐ͕ǁĞŚĂĚĂůƐŽĐƵƚďĂĐŬŽŶǁĂƚĞƌŝŶŐŽǀĞƌĂůůĂŶĚ
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MATTHEW
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Digitally signed by MATTHEW
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Date: 2020.05.08 14:17:25
-06'00'