Mark, I’m not personally acquainted with any translators in Quito, though I’m sure there are some. Perhaps you could try contacting one of the language schools there and seeing if they could help you. You can reach the Simon Bolivar Spanish School at info@simon-bolivar.com.
Buses to Otavalo leave Quito from the north terminal known as Carcalen. Once you arrive at the Otavalo terminal you can catch a bus to Cotacachi. Buses from both terminals depart frequently so you shouldn’t need to wait more than 20 minutes (at most) for a bus.
In Cotacachi, El Arbolito and La Cuadra are both nice inexpensive hostals that get good reviews. Otavalo and Cotacachi are only 20 minutes away from each other by bus, so I’m not sure you’d want to stay in one town and then move hotels to another town later since you can easily take day trips to either one. But if you want to stay in Otavalo as well there are a lot of nice hostals near the Plaza de Ponchos. Most potential expats choose to stay in Cotacachi, so I’m sorry, but I don’t really have any first-hand recommendations for accommodation in Otavalo.
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