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HomeMy WebLinkAboutAgenda - Full - Finance Committee - 05/02/2024 -Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com AGENDA Council Finance & Audit Committee Hybrid Meeting May 2, 2024 4:00 - 6:00 pm CIC Room Zoom Meeting https://zoom.us/j/8140111859 Approval of Minutes from the April 4, 2024, Council Finance Committee meeting. 1. Appropriation for Compliance with HB21-1110 R. Venkatesh Presentation: 15 mins. Discussion: 15 mins. 2.TCEF Reimbursement with a Metro District M. Virata Presentation: 15 mins. M. Martinez Discussion: 15 mins. Page 1 of 70 Council Finance Committee 2024 Agenda Planning Calendar Revised 4/22/24 ts May 2nd 2024 Appropriation for compliance with HB21-1110 30 min R.Venkatesh TCEF Reimbursement with a Metro District 30 mins M.Virata M.Martinez June 6th 2024 Water Supply Requirements, Excess Water Use Surcharges, and Nonresidential Allotments 45 mins J.Dial Civic Center Master Plan – Municipal Court Facility Options 45 mins D.Maxwell T.Ochsner CCIP Project List Update 30 mins G.Sawyer T. Storin July 3rd 2024 General Fund Admin Charge to Other Funds 30 mins L.Pollack August 1st 2024 Unscheduled Topics September – Annual Adjustment Ordinance – Lawrence Pollack Page 2 of 70 Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com Council Finance Committee Hybrid Meeting CIC Room / Zoom April 4, 2024 4:00 - 6:00 pm Council Attendees: Emily Francis, Kelly Ohlson, Mayor Jeni Arndt Staff: Kelly DiMartino, Travis Storin, Tyler Marr, Ginny Sawyer, Teresa Roche, Kelley Vodden, Chris Martinez, Jennifer Poznanovic, Lawrence Pollack, Trevor Nash, Renee Reeves, Monica Martinez, Brian Tholl, Glenn Pease, Terri Runyan, Victoria Shaw, Dave Lenz, Joe Wimmer, Zack Mozer, Nina Bodenhamer, Carolyn Koontz Others: Kevin Jones, Chamber Meeting called to order at 4:00 pm NOTE: Staff follow-up included on the last page of draft minutes. Approval of minutes from March 20th, 2024, Council Finance Committee Meeting. Kelly Ohlson moved for approval of the minutes as presented. Emily Francis seconded the motion. The minutes were approved unanimously via roll call by; Emily Francis, Kelly Ohlson. A.2025-2026 Budget Process Review Jennifer Poznanovic, Revenue Manager Chris Martinez, FP&A Manager Kelley Vodden, Compensation, Benefits and Wellbeing Director Lawrence Pollack, Budget Director SUBJECT FOR DISCUSSION (a short title) 2024 BFO Assumptions for funding availability, expense pressures, salary adjustments, and changes to benefits costs in the 2025-26 Budget. EXECUTIVE SUMMARY (a brief paragraph or two that succinctly summarizes important points that are covered in more detail in the body of the AIS.) Page 3 of 70 The City will again use the Budgeting for Outcomes (BFO) process to prepare the City Manager’s Recommended 2025-26 Biennial Budget. Key assumptions are established early in the process and reviewed with the Council Finance Committee. 1. Funding Sources: The sales and use tax forecast is an important revenue stream necessary to support ongoing costs. General Fund sales and use tax is allocated across all seven Outcomes, while the voter approved dedicated tax forecasts are allocated to specific Outcomes where applicable Offers can utilize that funding, per ballot language requirements. Likewise, in the enterprise funds, utility rate increases are necessary to address inflationary costs, infrastructure replacement needs, and maintain service delivery. Available reserves can also be used to fund offers, typically for one-time types of expenses. 2. Expense Pressures are numerous, including the ongoing impacts of significant inflation over the past couple years. Further, given natural financial constraints, there are challenges to taking care of existing City assets versus investments in new programs and services that could benefit the community. 3. Salary and Benefits: The 2025-26 Budget includes a preliminary 3.5% average salary pool increase for both 2025 and 2026, which will be reflected in offers. Employee benefit cost changes have also been entered into the City’s budgeting software and are used to calculate total employee compensation for 2025-26. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What questions do Committee members have about the assumptions for the 2025-26 Biennial Budget? BACKGROUND/DISCUSSION All background information is contained in the attachments and will be discussed in detail during the meeting. DISCUSSION / NEXT STEPS Page 4 of 70 Kelly Ohlson; page 3 Preliminary Unaudited Results (see above) 198% is it all Federal Frants? Follow up - overbudget by $17.5M Lawrence Pollack; two lines up $10M over Travis Storin; transportation - capital expansion – TCEF – street oversizing fee Payments in lieu of development Short of $400K hourly fees for parking garage $17.5M Investment portfolio accounting rules require us to market value. As interest rates went up last year, it looks that way on paper. Page 5 of 70 Sales Tax History (see slide #5 above) The above chart shows sales tax history over time. The dark blue bars represent either the KFCG or 2050 dedicated taxes. The first large jump in the sales tax growth line is the addition of KFCG, the second is the pandemic, and the third is the addition of the 2050 tax. The 2024 forecast is based on 12 months of the 2050 tax to more accurately project 2025 and 2026. However, collections for 2050 started in February of 2024. This is because tax due in February is for economic activity that occurred in January. 12 months of the 2050 tax will still be recognized in 2024 as revenue will be accrued back to the month in which the tax activity occurred. Staff recommends 3% growth in 2025 and 2026. Due to coming in under budget in 2023 for sales tax, staff is currently forecasting 2.9% growth for 2024. However, 3.9% growth is needed over 2023 actuals to reach the 2024 budget. Page 6 of 70 For use tax, staff recommends $25M for 2025 and $25M for 2026. 2024 is expected to be in line with recent year actuals and staff is currently forecasting $23M in 2024 (budget is $20M). Flat growth in 2025 and 2026 is expected based on the updated 2024 forecast. For property tax, staff is recommending 1% growth in 2025 and 2% growth in 2026. The recommendation is based on preliminary 2024 valuations and discussions with the Assessor’s Office. The fluctuations in growth rate are based on the two-year valuation cycles. Given the significant growth between 2021 and 2023, flat growth is expected over the next two years with new construction being the only anticipated change (subject to change based on any legislative action). Page 7 of 70 Personnel & Benefits BENEFITS – Chris Martinez We have a very healthy balance in reserves. Contribution Summary (see below) Page 8 of 70 Medical / Dental PEPM History (see above) Step ladder approach to increases - before 2016 we have very low increases and had very positive plan experience so we felt the need to keep rates low which had a boomerang effect in 2017 and 2018. In 2019, when the pandemic hit, we felt the need to help both the city and the organization, so we kept medical and dental increases at 0%. Mayor Arndt; is that a lag as the pandemic was in 2020? Chris Martinez; we started seeing it then – and still had some lingering effects from the overshot in 2017 and 2018. You see the negative 10.1% in 2020. At the direction of the CFO at the time, we leaned into benefit reserves to offset some general fund revenues that were not coming in to cover expenses. Travis Storin; the negative 10.1% was actual experience in clinical utilization as people couldn’t get in during pandemic. We were working hard to mitigate the impacts of the pandemic with the premium strategy. Chris Martinez; we used reserves which had an adverse effect - post pandemic, people were healthier – we were able to extend that out in 2021. In 2022, our consultants recommended a 7% increase because they saw the medical and dentals fields trying to recoup lost revenues from the pandemic. We applied a 7% increase and leaned on reserves 2022 and 2023 to help us keep our rates at bay. The organization has a Really good plan performance so we kept rates at 2% and 4.5%. Now history repeats itself, we worked with Hub International, our benefit consultant to project out all costs for medical and dental and prescription coverage out for 5 years to see what ranges we should be adopting now to avoid the 15 - 18% increases. We landed on a 7%. What we mean by the step ladder is that every year we are not increasing by 8 – 8.5% we are falling behind. We are strategically using our reserves while still increasing our rates so Page 9 of 70 we can avoid that pendulum. We want to keep things in a steady state, so we don’t fall in that trap again. Strategically burning some reserves but still keeping reserves in a healthy state with a buffer in there in case we were to have a bad year. Benefit rate recommendation slide #17 (see above) Emily Francis; I thought we weren’t participating in the family program. Kelley Vodden; we discovered that we had an opportunity to take advantage of the family program through the state for non-benefit eligible employees. There was a lot of fine tuning before the program went live. We were able, as an opted-out employer to choose to support employees who wanted to opt in voluntarily. In lieu of having to opt in and pay for the entire workforce, we pay their contribution individually on their benefits, so it is no cost to our non-benefited employees to participate in the state program. Kelly Ohlson; I support the balance of responsibility to staff and to tax and rate payers which is a complicated juggling act. Outside of utilities transfers, it is our biggest expenditure. Chris Martinez; benefits represent $44M of city’s budget. ACTION ITEM: Kelly Ohlson; I would like to request a general breakdown of dental /medical / prescription / Page 10 of 70 Salaries / retirement in real dollars and percentages so we can get a contextual feel to help when we make decisions. Benefit Rate Recommendations (see slide 17 above) For 2025 and 2026, we are kicking in 7% and employees are getting a 5.5% increase to catch up to where we need to be. Annual increases 7-8.5% for the employer. We are not deciding what the employee pays now since this is a 2-year budget. Chris Martinez; this is to come in subsequent years to avoid the boomerang we felt in 2017. This might be helpful for context – in 2020 – negative 10.1% to the city side – that is the reason the city is having to pay more back because we didn’t take that negative to employees – trying to make that up. We are managing to a 70/30 split - when we take in total costs (premiums and out of pocket) we are currently at a 72/28 split. The 70/30 is a legacy number and an industry standard plus there is collective bargaining for PFA and Police – there are statutes we must follow. Our employees should not be paying more than 30% of the cost share of their medical and dental. PFA and Police do pay in the benefit plans. I believe there is language in their plans for single and family that we have to be in compliance with – their total costs must be no more than 30% of the total plan costs. On the single side, we are in compliance, however, on the family side we are running very close at 29.5% for Police and PFA. Travis Storin; this is a lot of predictive work since we are self-funded and it is based on how much people actually utilize medical services. That 70/30 can be thrown out of balance if we see a big spike in physician visits, prescriptions, etc. ACTION ITEM: Kelly Ohlson; Could we look at peer communities data on benefits? Chris Martinez; we can and we have had that conversation with Hub International. It is hard to get apples to apples comparisons because you would have to have self-insured funds that have the same plan, mechanisms and co pays. It is rather difficult to get a pure apples to apples comparison so we look at it more in a percentage frame. What percentage of their plan is medical, do they pay on co-pays for pharmaceuticals and for specialty drugs. We look at it more in that regard, but we do monitor it. Kelly Ohlson; great to know that you do monitor. We want to be a really good employer but not over the top. Chris Martinez; we are not Cadillac. We did make an adjustment to our specialty pharmaceuticals because the plan previously allowed for $0 deductible for super expensive drugs when there was a generic available which was not fiscally prudent. What is the industry standard? What co-pay would be standard? This process educates the consumer as well regarding available lower cost alternatives. Page 11 of 70 Slide #19 (see above) reflects the employer side of the calculation. Breakdown of Medical for 2025 $30M Medical & Pharmaceuticals $2.1M Dental $2.8M For Stop Loss Balance is Wellness, City Care and admin, life insurance. $5M Not a city expense – this is a pass through - employees paying for voluntary life insurance, daycare reimbursement health savings accounts, Aflac, which are not a city expense - we just take them through our books. $44M TOTAL ACTION ITEM: Chris to provide a more detailed breakdown of the above. Kelly DiMartino; follow up to Emily Francis’ question earlier regarding the state family program. We had to opt-out but we made a commitment to Council to bring an alternative as a public council action. Page 12 of 70 COMPENSATION – Kelley Vodden Current Compensation Assumptions (see slide above) Deeper dive with Q2 data later this summer – look at external data, pay equity study, cost of living, retention. We do this work every year in advance of compensation planning. Mayor Arndt; what determines a step employee versus a range employee? Kelly Vodden; utilities is an example of step positions as they are required to reach a certain level of skill to advance to the next step / level. Open range does not have that requirement. Kelly DiMartino; it is really based on how the market attaches the position. Most of our Police positions are almost all step positions because that is how the industry benchmarks those positions. We have a few areas right now as that market is changing are looking at revisiting that and change to open positions. Kelley Vodden; we also have areas such as Parks who are curious and looking at using stepped positions as well. Page 13 of 70 Kelly Ohlson; referenced the Current Compensation Assumptions (see slide on previous page) Now you are saying that the 3.5% may go up to 4.25%. I just want to make sure I understand. Kelley Vodden; the reason is twofold, we didn’t have final 2023 data published to do our typical full analysis so we looked a lot at projections and trends to determine what our comfort level was and if there was any movement this year so we would have room to respond and continue to be competitive. You will notice that for 2024, we have a salary budget of 5% in total. Merit takes 4.5% exclusively and .5% is for any off cycle talent movements. Kelly Ohlson; so, we can look forward to seeing something between 3.5% - 4.25% in the final document. Travis Storin; I wouldn’t set that 4.25% in stone as this is best guess territory and we get the market data in earnest late this spring. So, July is when we will start to develop the final recommendation to Council. Kelly Ohlson; 2.5% pay range movement at the bottom of the slide – don’t you add that too? Kelley Vodden; pay range movement - recommendation for movement. We move our pay ranges in our open pay plan 2.5% based on what the market is driving. Our min / mid / max pay ranges are all shifting 2.5% for open positions. We don’t compensate our current employees for that pay range movement. Kelly Ohlson; for clarification -Council gave a total 5% increases for salaries for 2024 but that wasn’t 7% or 9%. Travis Storin; the 2.5%, if you think about it being a band for a given job with a minimum of $50K and maximum of $75K. An employee might be hired anywhere in that $25K range. The 5% budget applies to their compensation within that range. Every year we evaluate the pay plan and those boundaries of $50K and $75K is what moves by 1.5%. No impact to the employee’s pay, but the market is moving – ACTION ITEM: Kelley will provide something more illustrative per request from Kelly Ohlson. A one pager illustration together for the full Council for understanding of the percentages. Kelly DiMartino; recent changes have added a little confusion, but I believe it is for a very good reason. The pay range movement, we used to do cost of living adjustments. As the pay ranges moved, so did the salaries. This is a challenging thing for the organization to understand, because their pay range is moving which means the market is moving but we don’t automatically adjust their pay so they may feel like they are falling behind. What we have said is that within the merit increase allocation, that part of that factors in how the range is moving and performance along with a variety of things. Page 14 of 70 The reason there is a difference between 5% and the 4.5% and this is new. Historically in the organization, we have allocated merit increases for a two-year budget - there is no way we can always get it right as people move and positions are reallocated. We never had money allocated for that, we always took it out of underspend. So, budget after budget, we would start with a chronic deficit because of personnel moves that happened. Last cycle, our budget lead team said we have to change this. So, we are now saying, here is your total salary budget. A part of that we are always going to set aside to account for these exceptions and things that happen over the course of the two- year budget and we are doing it with salary dollars not underspend. Kelly Ohlson; I have had more confidence in city organization around these things in the last 5 years than every before. We try to be transparent and to look out for rate payers, taxpayers, and our employees. Lawerence Pollack; wrapping up with a review of Key 2024 BFO Dates (see slide below) First Reading would be on Election Day. I understand ELT was discussing a possible new date for that meeting. The budget has to be adopted by November 30th. We may need to choose a different day to meet that week as we don’t have meetings on election day. Maybe Thursday or Monday Page 15 of 70 B. EPIC Home Loan Bank Renewal Brian Tholl, Sr. Manager Mechanical Engineering Glenn Pease, Mechanical Engineer II SUBJECT FOR DISCUSSION: Renewal of Epic Homes Loan Program Third-Party Capital Agreements EXECUTIVE SUMMARY The purpose of this item is to update Council Finance regarding the capital sources for Utilities on-bill loan financing component, Epic Homes Loan, and to seek support for presenting US Bank and Vectra Bank capital agreement renewals to the Electric Utility Enterprise Board for approval. The blended public and private capital strategy of Epic Loans supports the Our Climate Future plan and the council priority of reducing climate pollution and air pollution through electrification. The existing US Bank agreement expires on May 31, 2024, and staff is proposing to renew the Vectra Bank agreement in parallel to reduce administrative efforts and to continue success with program participation. Staff recommend renewal of the proposed US Bank and Vectra Bank capital agreements as a key component of the ongoing implementation of Epic Homes Loan. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED • What questions does Council Finance Committee have on the Epic Homes Loan program? • Does the Committee support bringing the proposed third-party capital agreements to the Electric Utility Enterprise Board for approval? BACKGROUND/DISCUSSION Epic Homes Epic Homes is a comprehensive program to help Fort Collins Utilities customers achieve more efficient, comfortable, and healthy home living environments for homeowners and renters alike. The program encompasses various offerings, including: • Discounted home energy assessments • Equipment rebates on home upgrades and renewable energy projects supporting the Our Climate Future goals • Participating contractors • Quality assurance • Attractive on-bill financing options (Epic Homes Loans) • Certificates that document energy improvements  In October 2018, Fort Collins became a winner of the 2018 Bloomberg Mayors Challenge and the associated $1M prize. The 2018 Bloomberg Mayors Challenge involved over 300 cities proposing ideas to address important issues in their community. The City’s proposal was selected as a winner for its innovative approach to providing health and equity benefits to residents, specifically for low-to-moderate income renters, by improving the energy efficiency of homes. Residential property owners can take advantage of Epic Homes’ easy, streamlined steps to make their homes more comfortable, healthy, and efficient. Partnering with Colorado State University, Fort Collins also established a research study which links the health and well-being indicators of improved indoor environmental quality from efficiency upgrades. Page 16 of 70 Epic Homes provides non-energy benefits in addition to efficiency, such as increased comfort, health, and safety. Epic Homes Loan Epic Homes Loan is Fort Collins’ Utilities on-bill finance program. It is a component of the program portfolio which supports community priorities for energy efficiency, renewables, electrification, reduced greenhouse gas emissions, and increased equity and well-being for residents. Providing a simple, low-cost financial tool with Epic Homes Loan helps to meet these objectives by helping property owners undertake comprehensive efficiency improvements. This is especially important for older, less efficient rental properties, which make up a significant percentage of the City’s housing stock. Detailed information regarding the Epic Homes Loan program and loan terms can be found at https://www.fcgov.com/utilities/epicloan. The program operates under authorization in Code and the Financial Officer’s Rules and Regulations, as updated periodically. The program operates with a neutral balance sheet impact as the obligations to the third-party capital providers are balanced by the obligations of customers to repay on their monthly utility bills. The original on-bill finance program started issuing loans in 2013. The program was then paused in 2016 when the program’s success resulted in reaching the cap of maximum outstanding loan balance funded through Light & Power reserves ($1.6 million). Building on this success, on-bill finance was revitalized as Epic Homes Loan in August 2018 during the Champions Phase of the Bloomberg Mayors Challenge. The City was awarded grants from the Colorado Energy Office ($200,000) and from Bloomberg Philanthropies ($688,350 of the $1M) for the Epic Loan Program. One of the workstreams of the Bloomberg Mayors Challenge project was to secure third-party capital as a strategy to enable scaling of the program. In 2019, the Utilities entered into a $2.5M line of credit loan agreement with U.S. Bank to provide up to 10-year capital for the Epic Homes Loan Program. This line of credit termed out in December 2021 and will again in May 2024. In 2020, an additional $2.5M line of credit loan agreement was signed with Vectra Bank Colorado to provide 15-year capital. This line of credit is nearing its cap but will not term out until July 2025. A revision to the agreement to increase the limit is being proposed to sustain the growth of the program. Both of these agreements are structured as lines of credit which are periodically converted into fixed rate term loans. (See Table 1 for a summary of the program’s capital stack.) Through 2023, Fort Collins Utilities has serviced 536 on-bill loans to support energy efficiency upgrades in residential homes and to help property owners overcome financial barriers for making these important upgrades. The blending of zero cost capital (reserves and grants) with low interest third-party capital is what enables the program to offer attractive and competitive interest rates and terms for Utilities customers. With the enterprise fund as the borrower, the program is able to extend the benefits of the high credit rating of the organization to individual customers. These rates are periodically adjusted based on the blended cost of capital. See Table 2 for current interest rates and Table 3 for program results. An ongoing and attractive financing structure to support energy efficiency retrofits is a critical element for success moving forward. The low rates and scalability of these third-party agreements align with the programmatic objectives and financial requirements of the City. Page 17 of 70 Table 1. Summary of Proposed Epic Homes Loan Capital Stack Capital Type Provider Term Rate Amount Internal & Grant Previously authorized Light & Power reserves Ongoing 0% $1,600,000 Bloomberg Philanthropies Grant 0% $688,350 Colorado Energy Office – Grant Grant 0% $200,000 Internal Subtotal $2,488,350 External Market Colorado Energy Office – Loan 15 year 0% $800,000 U. S. Bank 5 & 10 year LOC: 1-Month SOFR + 1.05% Term: COF + 1.65% for 3 yr or COF + 1.85% for 8yr (Currently 6.88% and 7.14%) Up to $2,500,000 Vectra Bank Colorado 15 year LOC 10y T note + 2.75% (Currently 6.89 %) Term 10y T note (Currently 4.14%) Up to $3,500,000 External Subtotal $6,800,000 Total $9,288,350 Table 2. Customer Interest Rates Loan Term Customer Rate (Effective June 2023) 3 or 5 years 5.25% 7 or 10 years 5.55% 15 years 5.95% Note: Customer interest rates are evaluated at a minimum of every 6 months, but usually quarterly when in a rate changing market Page 18 of 70 Table 3. Program Results Number of Loans Issued 536 Number of Outstanding Loans 355 Number of Loans Paid in Full 181 Total Amount Funded $8,994,010 Amount Outstanding $5,634,529 Total Amount of Interest Payments $580,428 Median Loan Amount $14,985 Median Monthly Principal Payment $102.50 Median Monthly Interest Payment $35.84 Third-Party Capital Agreement Summaries: • The terms of the previous US Bank agreement, concluding on May 31, 2024, include: • Amount: Up to $2,500,000 • Length: 10-years inclusive of draw period • Draw period: Up to 2 years, with draw timing and amounts based on program / customer demand. • Line of Credit rate: 76% of the Prime Rate (6.46% as of March 2024); Rate set at time of loan closing. • Term rates: Cost of funds (COF) plus 1.65% for 3-year terms, and COF plus 1.85% for 8-year terms. • Collateral: None • Pre-pay: The loan may be prepaid, in whole or in part, at the option of the Enterprise with no penalty. • Repayment position: Senior pledge on customer loan repayments and subordinate position on Electric Utility revenues, after the more senior pledge held by revenue bondholders. US Bank agreement, revised terms for extension to conclude in November of 2025: • Line of Credit rate: 1M Secured Overnight Financing Rate (SOFR) + 1.05% for 1 –1.5-year term or 1M SOFR + 1.68% for 2-2.5 year term. (Currently 6.36% and 6.99% respectively • Term rates: Cost of funds (COF) plus 1.65% for 3-year terms, and COF plus 1.85% for 8-year terms. • Remaining terms carryforward from existing agreement. The terms of the previous Vectra Bank agreement, which concludes in July 2025, include: • Amount: Up to $2,500,000 • Length: 15 years inclusive of draw period • Draw period: Up to 2 years, with draw timing and amounts based on program / customer demand. • Fixed rate: 10 yr Treasury +2.75%. Yr 1 $1,012,000 at 5.56%; Yr 2 6.908% • Collateral: None • Pre-pay: City may pre-pay in whole or in part after 2027 with no penalty. No prepayment is allowed prior to 2025, and between 2025 and 2027 there is a 1% prepayment fee. • Repayment position: Senior pledge on customer loan repayments and subordinate position on Electric Utility revenues, after the more senior pledge held by revenue bondholders. The proposed revisions to the Vectra Bank agreement will be: • Amount: from up to $2,500,000 to up to $3,500,000 • Expiry Date: From July 2025 to July 2026 Page 19 of 70 *Vectra Agreement still under internal review at Vectra and is subject to change. US Bank and Vectra Agreements. Pending review and recommendations from City Attorney's office Next Steps • Staff seeks support from Council Finance Committee to proceed with Electric Utility Enterprise Board consideration of the proposed agreements. • If supported, staff will finalize agreements and associated term sheets. • Staff will present the agreements at soonest possible Council meeting. • Continue with program operations and financial transactions. • Continue to explore strategies for scaling the program to present to Council as part of seeking expansion of program limits in Fall of 2024 GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED • What questions does Council Finance Committee have on the Epic Homes Loan program? • Does the Committee support bringing the proposed third-party capital agreements to the Electric Utility Enterprise Board for approval? DISCUSSION / NEXT STEPS Mayor Arndt; I am fully supportive and love the on-bill financing program. This program is a win win. This is something government is good at. Minimizing risk Travis Storin; this is one of the most innovative programs we have developed. We are leveraging our institutional borrowing power and extending it to the consumer level in a way that drives our climate goals. We have had zero defaults in 10 years which is amazing. Mayor Arndt; this failed at the state level, but it is a perfect role for government. Kelly Ohlson; are these ten-year agreements with the banks? Brian Tholl; they are actually two-year agreements with the enterprise board of the city. The terms are 5 years with US Bank and a 15-year term with Vector Bank. The debt service and how we are paying the loans back is over a varied timeline. Kelly Ohlson; I am so supportive of this program. Do we get good deals on the rates? Travis Storin; yes, this is a creative instrument and I have to commend our two lending partners on this as they took some risk here with the idea of a two-year window where we can draw down the funds and extend it to our customers. At the end of the two years, it locks for a 5-, 10- and 15-year period. It is a variable rate product for the two-year window and then we lock in a rate for those intervals. It is an innovative and creative product. Emily Francis; is the customer rate changing with these new agreements? Brian Tholl; we don’t anticipate that these new agreements would drive any changes to the customer rate. Page 20 of 70 Emily Francis; do we still partner with Larimer County to do the assessments? Brian Tholl; that is a slightly different program – there are two different programs. Mayor Arndt; there is no assessment just for HVAC, right? Brian Tholl; due to the nature of emergency replacements, we don’t require an audit in order to be eligible for incentives such as the loan product itself. Glenn Pease; you do need to have an assessment which is required for installation for HVAC and solar. Harris is the company that does the assessments. Kelly Ohlson; do we help in any way if someone gets a bum contractor? Brian Tholl; part of the requirements for receiving the incentives, are that our contractors go through a series of trainings on the requirements for the program which include quality assurance standards for the Installers. We require photo documentation of the installation as well. We assist by ensuring quality and providing training. This is a closed program, which means we have a relationship with the contractors as well. Kelly Ohlson; we don’t’ want residents to be taken advantage of. Meeting Adjourned Staff Follow Up from Lawrence Pollack: Question: What drove the significant increases in 2023 actual revenue in the categories of Transportation Fee revenue and Utilities Other Miscellaneous revenue? Response: 2023 Transportation Fee revenue was $4.7M over budget, primarily driven by Transportation Capital Expansion Fees of $3.5M. Another $765k was from Payments in Lieu of Development and $375k from hourly garage parking revenue. Utilities Other Miscellaneous revenue was over budget by $1.1M split across the Utility Funds as follows: Light and Power $512k, Water $39k, Wastewater $31k, Stormwater $52k. and Customer Service & Administration (CS&A) $512k. Of the two larger amounts, Light and Power’s other miscellaneous revenue was primarily comprised of $225k in repair charges (one of which was over $100K for one of the switch cabinets), as well as warehouse revenue of just under $300k for heighted transactional volumes. For CS&A, the amount over budgeted revenue was mostly driven by late fees of $390k and reconnect charges of $50k. Page 21 of 70 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Rupa Venkatesh, Assistant City Manager Jan Reece, Lead Equal Opportunity Compliance Specialist Date: May 2, 2024 SUBJECT FOR DISCUSSION Appropriation Request to Develop a Digital Accessibility Roadmap EXECUTIVE SUMMARY The purpose of this item is to request an appropriation of $150,000 in General Funds in order to work with a consultant to develop a comprehensive and actionable Digital Accessibility Roadmap. The purpose of this roadmap is to provide a strategy for compliance with both Colorado and federal laws and regulations pertaining to digital accessibility requirements, including both the Americans with Disabilities Act and Colorado House Bill 21-1110. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What questions do Committee members have about this request? Does the Committee support staff bringing an appropriation ordinance for consideration at the May 21, 2024 Council meeting? BACKGROUND/DISCUSSION (details of item – History, current policy, previous Council actions, alternatives or options, costs or benefits, considerations leading to staff conclusions, data and statistics, next steps, etc.) House Bill 21-1110, Colorado Laws for Persons with Disabilities, as amended by State Bill 23- 244, relates to all technology, hardware, and software, that is both public-facing and internal- facing. This includes any technology provided by or procured by a government entity that is used by the public or used by a government entity employee. This technology includes but is not limited to websites, applications, kiosks, digital signage, documents, video, audio, and third- party tools. By July 1, 2024, all local governments need to be compliant. Part of this work includes conducting an inventory survey, classifying , prioritizing and accessing all applicable Information and Communication Technology (ICT) as defined by the state and goes beyond just Page 22 of 70 web content. A citywide survey has been completed, which revealed that staff needs additional expertise to assist in determining the accessibility of the City’s current ICT portfolio. Therefore, a Request for Proposals (RFP) was issued to hire a consultant to provide the City with an assessment and roadmap. A consultant selected from the RFP process will assist in the following: • Conduct a comprehensive review and analysis of the City’s digital technology, on-line services, websites, and third-party software applications to develop a prioritized Digital Accessibility Roadmap • Analyze the current usage level for City webpages, software applications, and online services as part of development of prioritized mitigation strategies and Digital Accessibility Roadmap • Provide an evaluation of the time and cost needed to remediate non-compliant content on both the City’s website and third-party service delivery platforms • Develop a strategy and action plan to drive compliance with Colorado’s digital accessibility laws and regulations Future phases of this work may include ongoing services to ensure future digital content is compliant with accessibility standards, including but not limited to, processes to validate that newly created content is in compliance with accessibility regulations; provide training for City staff to ensure that they have knowledge and skills to maintain compliance; and recommendations for modifying existing City procurement processes and documents to ensure that new or renewing third party software and digital services comply with applicable accessibility regulations. ATTACHMENTS 1. Presentation Page 23 of 70 Headline Copy Goes Here Lead Equal Opportunity Compliance Specialist Jan Reece Assistant City Manager Rupa Venkatesh 05-02-2024 Council Finance Committee: Digital Accessibility Roadmap Page 24 of 70 Headline Copy Goes Here 2 Questions for Council What questions do Committee members have about this request? Does the Committee support staff bringing an appropriation ordinance for consideration at the May 21, 2024 Council meeting? Page 25 of 70 Headline Copy Goes Here 3 HB 21-1110 •Passed in July 2021 •Applies to all Information and Communication Technology (ICT) that is both public-facing and internal-facing. It is not limited to just websites and also includes applications, kiosks, digital signage, etc. •All local governments must be compliant by July 1, 2024. Page 26 of 70 Headline Copy Goes Here 4 Scope of Services •Conduct a comprehensive review and analysis of the City’s digital technology, on-line services,websites, and third-party software applications to develop a prioritized Digital Accessibility Roadmap •Analyze the current usage level for City webpages, software applications, and online services as part of development of prioritized mitigation strategies and Digital Accessibility Roadmap •Internal ICT survey complete •Provide an evaluation of the time and cost needed to remediate non-compliant content on both the City’s website and third-party service delivery platforms •Develop a strategy and action plan to drive compliance with Colorado’s digital accessibility laws and regulations Page 27 of 70 Headline Copy Goes Here 5 Estimated Timeline for Consultant Funding Current RFP will cover: •Comprehensive Review and Analysis= 160 hours •Current Asset Usage Analysis= 120 hours •Remediation Time= 100 hours •Compliance Strategy and Action Plan Development= 150 hours Future phases of work may include: •Ongoing services to ensure future digital content •Newly created content compliance with accessibility regulations •Training for City staff to ensure that they have knowledge and skills to maintain compliance •Recommendations for modifying existing City procurement processes and documents to ensure that new or renewing third party software and digital services comply with applicable accessibility regulations Page 28 of 70 Headline Copy Goes Here 6 Questions for Council What questions do Committee members have about this request? Does the Committee support staff bringing an appropriation ordinance for consideration at the May 21, 2024 Council meeting? Page 29 of 70 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Marc Virata, Monica Martinez, Andy Smith Date: May 2, 2024 SUBJECT FOR DISCUSSION Waters Edge Second Filing Transportation Capital Expansion Fee Major Reimbursement EXECUTIVE SUMMARY The Waters Edge developer has constructed street improvements to Turnberry Road, Brightwater Drive, and Morningstar Way to City standards as part of its development plans and development agreement for Waters Edge Second Filing and permitted for construction under a Waters Edge Third Filing Development Construction Permit. Per Section 24-112 of the City Code, the developer is eligible for reimbursement from Transportation Capital Expansion Fee (TCEF) funds for the oversized, non-local portion for construction. Staff is recommending appropriations totaling $612,027 from TCEF funds. City Council approved the consolidated service plan for Waters Edge Metropolitan Districts Nos. 1-5 by adopting Resolution 2018-084 on September 18, 2018. Staff has identified on the review of this reimbursement request that, as part of the metro district service plan for Waters Edge, the developer may also be eligible to seek reimbursement from the metro districts for these same street improvements that the developer is requesting from TCEF funds. To make clear that the developer cannot seek reimbursement from the metro districts, the Board of Directors of Districts 1 and 2 adopted a joint resolution affirming that the Districts shall not reimburse the developer, for costs reimbursed by the City, and the Districts’ accountant shall ensure that the Districts do not reimburse the developer for costs reimbursed by the City. Additionally, the accountant issued an affidavit to Districts 1 and 2 affirming that Districts 1-5 have not reimbursed the developer, and that the districts cannot reimburse the developer for street oversizing costs that the City has already reimbursed, nor can the districts acquire such improvements. Districts 3, 4, and 5 are presently declared inactive, and are intended for future development east of Turnberry Road, and not associated with the street improvements that the developer is requesting from TCEF funds. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED • Do Council Finance Committee support an off-cycle appropriation of Transportation Capital Expansion Fee fund reserves to reimburse the Waters Edge developer for its construction of Turnberry Road, Brightwater Drive, and Morningstar Way? • Do Council Finance Committee support TCEF funds being utilized as proposed by Staff, in light of the joint resolution and accountant’s affidavit documentation from the Waters Edge Districts 1 and 2 that the metro districts have not, and will not also reimburse for these same improvements if TCEF funds are used to reimburse the developer? BACKGROUND/DISCUSSION TCEF Program Page 30 of 70 The TCEF Program (formerly Street Oversizing), instituted by ordinance in 1979, was established to manage the construction of new arterial and collector streets, and is an “Impact Fee” funded program. The TCEF Program determines and collects impact fees from development and redevelopment projects. The collection of these impact fees contributes funding for growth’s related share towards City Capital Projects, including the City’s Active Modes Plan, and reimburses development for constructing roadway improvements above the local street access standards. Section 24-112 of the City Code allows for reimbursement to developers for the construction of collector and arterial streets. Waters Edge (marketed as Sonders Fort Collins) is a development on the west side of Turnberry Road between Douglas Road and Country Club Road built in between the Hearthfire, Richard’s Lake, and Serramonte neighborhoods. This reimbursement is for the Waters Edge developer’s construction above the local street access standards of Turnberry Road (2-lane arterial), Brightwater Drive (collector), and Morningstar Way (collector) as part of the Waters Edge Second Filing and permitted for construction under the Waters Edge Third Filing Development Construction Permit. Portions of pavement, landscaping, and sidewalk for all three streets are eligible for reimbursement and are depicted in the “Waters Edge Second Filing Street Oversizing/Repay Exhibit A” and itemized between City (TCEF) and local (developer/adjacent parcel owner) responsibility in Exhibits B “Street Reimbursement Agreement” and B-1 “Street Reimbursement Agreement City-Developer Cost Breakdown”. Brightwater Drive abuts a City-owned property as a park site and separately, the developer and City Park Planning and Development are working on identifying local costs attributable to the City as reimbursement to the developer as City park street frontage requirements. Staff has reviewed the documentation provided by the Waters Edge developer and agrees that the requested reimbursement meets the requirements under City Code Section 24-112 for appropriation from TCEF funds. There are presently adequate funds in TCEF to reimburse the developer and Staff recommends reimbursement in the amount of $612,027. While this reimbursement is considered routine as part of the Code obligations under the TCEF Program, this request is coming before Council Finance Committee because of the large dollar amount outside of the typical 2-year budgeting process. TCEF reimbursements to development were formerly anticipated and appropriated through the 2-year budgeting process. As part of the process improvements identified first in the 2021 budget, the TCEF Program is now categorizing developer reimbursements as “Major” and “Minor” reimbursements, with “Major” developer reimbursements brought to Council individually rather than predicting what reimbursements are needed on a 2-year basis. This proposed reimbursement is the third request under this process with Council Finance Committee having reviewed Northfield in 2022 and Waterfield in 2023. As part of Council Finance Committee’s input for Northfield, Council Finance Committee supported TCEF reimbursing Northfield instead of Northfield’s metro districts. Part of that reimbursement request included Northfield and its metro districts committing that the metro districts would not reimburse Northfield, meaning that Northfield would not “double dip” and be reimbursed twice for its costs. (Waterfield does not have a metro district.) Similarly to Northfield, Waters Edge has metro districts that were established with City Council approving the consolidated service plan Page 31 of 70 for Waters Edge Metropolitan Districts Nos. 1-5 by adoption of Resolution 2018-084 on September 18, 2018. Staff has identified on the review of this reimbursement request that, as part of the metro district service plan for Waters Edge, the developer may be eligible to seek reimbursement from the metro districts for these same street improvements that the developer is requesting from TCEF funds. The Board of Directors of Districts 1 and 2 adopted a joint resolution affirming that the Districts shall not reimburse the developer, and the Districts’ accountant shall ensure that the Districts do not reimburse the developer. Additionally, the accountant issued an affidavit to Districts 1 and 2 affirming that Districts 1-5 have not reimbursed the developer, and that the districts cannot reimburse the developer for street oversizing costs that the City has already reimbursed, nor can the districts acquire such improvements. Resolutions declaring Districts 3, 4, and 5 as inactive were adopted on December 2019, and are intended for future development (separate from Sonders Fort Collins) east of Turnberry Road. These districts are not associated with the Waters Edge Filings and the associated street improvements that the developer is requesting from TCEF funds. Special district notices declaring the continued inactive status of Districts 3, 4, and 5 were provided to the City in December 2023. ATTACHMENTS 1. “Waters Edge Second Filing Street Oversizing/Repay Exhibit A” 2. “Street Reimbursement Agreement Exhibit B” 3. “Street Reimbursement Agreement City-Developer Cost Breakdown Exhibit B-1” 4. “Joint Resolution of the Board of Directors of Waters’ Edge Metropolitan District Nos. 1 & 2 – Prohibiting District Reimbursement” 5. “Board of Directors of Waters’ Edge Metropolitan District Nos. 1 & 2 – Accountant’s Affidavit” 6. “Resolution of the Board of Directors of the Waters’ Edge Metropolitan District No. 3 – Declaring Inactive Special District Status” 7. “Resolution of the Board of Directors of the Waters’ Edge Metropolitan District No. 4 – Declaring Inactive Special District Status” 8. “Resolution of the Board of Directors of the Waters’ Edge Metropolitan District No. 5 – Declaring Inactive Special District Status” 9. “Notice of Continuing Inactive Status for Waters’ Edge Metropolitan District Nos. 3-5” Page 32 of 70 Headline Copy Goes Here Civil Engineer Marc Virata Water Edge Second Filing Developer Major Reimbursement 5-02-2024 Monica Martinez Andy Smith Manager, Financial Planning & Analysis Redevelopment Manager Page 33 of 70 Headline Copy Goes Here 2Questions for the Council Finance Committee 1.Does Council Finance Committee support an off-cycle appropriation of Transportation Capital Expansion Fee fund reserves to reimburse the Waters Edge Second Filing developer for its construction of Turnberry Road, Brightwater Drive, and Morningstar Way? 2.Does Council Finance Committee support TCEF funds being utilized as proposed by Staff, in light of the joint resolution and accountant’s affidavit documentation from the Waters Edge Districts 1 and 2 that the metro districts have not, and will not also reimburse for these same improvements if TCEF funds are used to reimburse the developer? Page 34 of 70 Headline Copy Goes Here 3TCEF Program •One time impact fee collected from development and redevelopment to mitigate impacts to the existing transportation network •Fee is proportional to anticipated impact •Used to support growth related infrastructure improvements which add capacity to the system •Reimbursement to Developers •Contributions to transportation capital improvement projects •Fees cannot be used for improvements which solely benefit an adjacent development, existing deficiencies, and for maintenance Page 35 of 70 Headline Copy Goes Here How are TCEF Fees used?4 Site 1 Site 2 Site 3 Site 4 •Reimbursement to Developers for constructing improvements beyond “local street” •Contributions to Capital Projects •Complete Streets •Transportation Capital Projects Prioritization Study •Multimodal Improvements •Active Modes Plan •Intersections/Signals Arterial St. Local St. Collector St. Page 36 of 70 Headline Copy Goes Here TCEF Process Change TCEF Reimbursement Appropriation Process Since Program Inception through 2020 •Appropriation for reimbursement through standard budgeting process •Forecast when development projects are entitled and constructed 2021 Budget TCEF Program Update •“Minor” reimbursements appropriated through 2-year budget process •“Major” reimbursements instead individually appropriated Previous Major Reimbursements to Council Finance Committee •Northfield ($2.1M) – December 2022 •Waterfield ($1.4M) – December 2023 5 Page 37 of 70 Headline Copy Goes Here 6Waters Edge Vicinity Map Richard’s Lake Maple Hill Hearthfire Waters Edge Serramonte Country Club Reserve Douglas Road Tu r n b e r r y Ro a d Richard’s Lake Rd. Mountain Vista Dr. Country Club Rd. Page 38 of 70 Headline Copy Goes Here 7Waters Edge Road Improvements 7 Northfield’s Construction Suniga Road Improvements Project (2019) Constructed 2014 Future Construction Vine & Lemay Improvements (Includes segment of Suniga Road) Limits: Redwood Street to Lindenmeier Road (former Lemay alignment) Previous reimbursements: road right-of-way ($477K, 2020); box culvert ($361K, 2021) TCEF Appropriation Request: $2.1M Waters Edge/Sonders Fort Collins Tu r n b e r r y Ro a d Morningstar Way Page 39 of 70 Headline Copy Goes Here 8Waters Edge Road Improvements Page 40 of 70 Headline Copy Goes Here 9Waters Edge Morningstar Way 9 Page 41 of 70 Headline Copy Goes Here 10Waters Edge Brightwater Drive 10 Page 42 of 70 Headline Copy Goes Here 11Waters Edge Turnberry Road 11 Page 43 of 70 Headline Copy Goes Here 12Waters Edge Road Improvements TCEF Appropriation Request: $612,027 Does Council Finance Committee support an off-cycle appropriation of Transportation Capital Expansion Fee fund reserves to reimburse the Waters Edge Second Filing developer for its construction of Turnberry Road, Brightwater Drive, and Morningstar Way?Page 44 of 70 Headline Copy Goes Here 13Waters Edge Metro Districts 1-5 Waters Edge Metropolitan Districts •Resolution 2018-084 approved Service Plan for Waters’ Edge Metropolitan Districts Nos. 1-5 Page 45 of 70 Headline Copy Goes Here 14Waters Edge Metro Districts 1-5 Districts: 1 3 4 5 District 2 Page 46 of 70 Headline Copy Goes Here 15Waters Edge Metro Districts 1-5 Districts: 1 3 4 5 District Status •Districts 1 & 2 are active •Districts 3-5 are inactive since December 2019 and reaffirmed to the City as inactive December 2023 •Districts 3-5 intended to expand into future development “Inclusion Area” east of Turnberry Road District 2 Page 47 of 70 Headline Copy Goes Here 16Waters Edge Metro Districts 1-5 District 2 Districts: 1 4 3 5 Districts 1 & 2: •Joint Resolution issued affirming Districts 1 & 2 shall not reimburse the developer for reimbursements from TCEF •Districts 1 & 2 Accountant provided affidavit affirming: •Districts 1-5 have not reimbursed developer •Districts 1-5 are ineligible to reimburse the developer for costs reimbursed by TCEF •Districts 1-5 cannot acquire the improvementsPage 48 of 70 Headline Copy Goes Here 17Waters Edge Metro Districts 1-5 District 2 Districts: 1 4 3 5 Does Council Finance Committee support TCEF funds being utilized as proposed by Staff, in light of the joint resolution and accountant’s affidavit documentation from the Waters Edge Districts 1 and 2 that the metro districts have not, and will not also reimburse for these same improvements if TCEF funds are used to reimburse the developer? Page 49 of 70 Headline Copy Goes Here Page 50 of 70 Headline Copy Goes Here For Questions or Comments, Please Contact: THANK YOU! Marc Virata, Monica Martinez, Andy Smith mvirata@fcgov.com, momartinez@fcgov.com , asmith@fcgov.com Page 51 of 70 Headline Copy Goes Here Page 52 of 70 Headline Copy Goes Here Service Plan Service Plan for Waters Edge 21 Page 53 of 70 8' ' S A 8 ' ' S A 8 ' ' S A 10 ' ' S A 10 ' ' S A 8'' SA W W 24''W24''W24''W S T E G E E E E E E GW W W G G 24''W 24 28 8 30 4 30 9 45 44 18 518 6 18 4 18 3 18 2 11 9 18 1 18 0 17 9 17 4 17 3 17 2 17 1 17 5 17 8 17 7 30 0 30 1 3 0 2 29 7 29 8 29 9 28 0 2 8 1 28 2 28 3 6 7 8 9 10 22 23 27 2 5 26 28 29 30 31 11 12 13 14 5 28 4 2 8 5 2 8 6 28 7 4 28 9 3 29 0 2 1 29 1 29 2 29 5 29 3 29 4 32 1 29 630 3 30 5 30 6 30 8 59 30 7 58 60 56 57 50 54 55 53 52 48 51 32 4 49 32 9 47 46 16 15 43 19 17 21 37 20 42 41 62 39 38 63 64 65 66 67 68 69 7071727374757677 79 80 81 82 83 84 85 86 87 96 95 94 93 92 91 90 89 88 97 98 99 10 0 10 1 13 3 10 2 10 3 10 4 10 5 10 6 10 7 10 8 10 9 11 0 11 1 11 2 11 3 11 4 11 5 11 6 11 711 8 12 0 13 7 13 8 14 1 14 0 13 9 14 2 14 3 14 4 14 5 14 6 7 15 7 15 8 15 9 15 6 16 0 16 2 16 1 16 3 16 7 16 4 16 5 17 6 16 6 16 9 16 8 17 0 36 35 34 33 32 31 9 31 8 3 1 7 31 6 31 5 3 1 4 31 3 31 0 31 1 31 2 32 0 32 2 32 3 32 8 32 5 32 6 32 7 12 8 12 7 12 6 12 9 13 2 13 0 12 5 12 4 12 312 2 12 1 13 6 13 5 13 4 13 1 23 0 20 0 19 9 19 8 20 2 20 1 23 6 23 7 23 8 23 5 20 3 20 4 20 5 20 6 20 7 20 8 20 9 22 8 22 9 23 2 23 1 23 3 23 4 19 5 19 6 22 6 19 4 19 3 19 2 19 1 19 0 18 9 18 8 18 7 21 8 21 7 21 6 21 5 21 4 21 3 21 2 2 1 1 21 0 22 7 25 3 22 5 22 4 22 3 22 2 22 1 22 0 21 9 25 9 25 8 2 5 7 2 5 6 25 5 25 4 24 9 25 2 25 1 25 0 26 2 24 8 24 7 24 6 24 5 24 3 24 4 26 0 26 1 26 3 26 4 27 1 26 5 26 6 26 7 26 8 26 9 27 0 27 9 27 2 27 3 27 4 27 5 27 6 27 7 27 8 24 2 24 1 24 0 23 9 19 7 BRIGHTWATER DR I V E TURNBERRY ROAD (CR 11) B R I G H T W A T E R D R I V E BRIGHTWATER DRIVE LONGB O A T W A Y FLEET DRIVE CR U I S E R L A N E PARKSIDE DRIVE MOR N I N G S T A R W A Y NAVIGATOR WA Y N A V I G A T O R W A Y TR A N S O M L A N E GANGWAY DRIVE SQ U I B L A N E DAYSAILER WAY OUTRIGGER WAY SK I F F L A N E JE T T Y L A N E MI D S H I P W A Y MO R N I N G S T A R W A Y JIB LANE LATEEN LANE CO M P A N I O N W A Y TURNBERRY ROAD (CR 11) P L A N K L A N E LL OW C I R C L E HELMSMAN STREET PH A S E I I PH A S E I I I PH A S E I C PH A S E V PH A S E V PH A S E I A PH A S E I V PH A S E I I I PH A S E I I PH A S E I I PH A S E I C PH A S E I A C I T Y P A R K TA C K L A N E RO W I N G L A N E MO O N R A K E R L A N E DROMO N D L A N E C O R D A G E L A N E TR U N N E L L A N E PH A S E I B PH A S E I B PHA S E I B 1 1 2 2 1 3 4 4 5 5 4 5 4 6 6 6 4 14 14 14 SI D E W A L K : 4 , 8 9 1 S F AS P H A L T : 1 , 1 4 3 S Y 4 1313 13 17 16 16 16 17 17 18 18 18 3 3 1 3 6 6 6 15 15 15 KE Y N O T E L E G E N D . SI D E W A L K O V E R S I Z I N G , N O R T H & S O U T H S I D E S O F M O R N I N G S T A R D R I V E ( W E S T O F RO U N D A B O U T ) ST R E E T O V E R S I Z I N G , N O R T H A N D S O U T H S I D E S O F M O R N I N G S T A R D R I V E ( W E S T O F RO U N D A B O U T ) PA R K W A Y O V E R S I Z I N G , N O R T H & S O U T H S I D E S O F M O R N I N G S T A R D R I V E ( W E S T O F R O U N D A B O U T ) SI D E W A L K O V E R S I Z I N G , W E S T & E A S T S I D E S O F B R I G H T W A T E R D R I V E ( S O U T H O F R O U N D A B O U T ) ST R E E T O V E R S I Z I N G , W E S T A N D E A S T S I D E S O F B R I G H T W A T E R D R I V E ( S O U T H O F R O U N D A B O U T ) PA R K W A Y O V E R S I Z I N G , W E S T & E A S T S I D E S O F B R I G H T W A T E R D R I V E ( S O U T H O F R O U N D A B O U T ) (N O T U S E D ) (N O T U S E D ) (N O T U S E D ) (N O T U S E D ) (N O T U S E D ) (N O T U S E D ) ST R E E T O V E R S I Z I N G , A S P H A L T R E M O V A L W E S T S I D E O F T U R N B E R R Y R O A D SI D E W A L K O V E R S I Z I N G , W E S T S I D E O F T U R N B E R R Y R O A D PA R K W A Y O V E R S I Z I N G , W E S T S I D E O F T U R N B E R R Y R O A D ST R E E T O V E R S I Z I N G , W E S T S I D E O F T U R N B E R R Y ( B E Y O N D T H E L O C A L P O R T I O N & R T . T U R N L A N E ) ST R E E T O V E R S I Z I N G , A S P H A L T R E M O V A L E A S T S I D E O F T U R N B E R R Y R O A D ST R E E T O V E R S I Z I N G , E A S T S I D E O F T U R N B E R R Y R O A D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 NO T E S . 1) T H I S E X H I B I T D E P I C T S S T R E E T O V E R S I Z I N G I T E M S A N D A R E A S , A T T R I B U T A B L E T O T H E W A T E R S E D G E W E S T DE V E L O P M E N T . P H A S E L I N E S A R E A L S O S H O W N F O R T H E D E V E L O P M E N T . 2) T H E C I T Y P A R K I S O W N E D B Y T H E C I T Y , A N D T H E R E F O R E , A P O R T I O N O F T H E N O R T H S I D E O F B R I G H T W A T E R D R I V E A N D A PO R T I O N O F T H E W E S T S I D E O F P A R K S I D E D R I V E , A D J A C E N T T O T H E C I T Y P A R K , A R E S H O W N A S R E P A Y I T E M S / A R E A S O N A S E P A R A T E E X H I B I T F O R T H E P A R K S P L A N N I N G D E P A R T M E N T , A S W A T E R S E D G E W E S T H A S C O N S T R U C T E D T H E E N T I R E ST R E E T S E C T I O N F O R B O T H S T R E E T S . O V E R S I Z I N G O F T H E S E T W O S T R E E T S A R E A L S O A P P L I C A B L E , A N D H A V E B E E N SH O W N I N T H I S E X H I B I T . 3) I M P R O V E M E N T S O N T H E W E S T A N D E A S T S I D E S O F T U R N B E R R Y R O A D A R E E L I G I B L E F O R S T R E E T O V E R S I Z I N G . TU R N B E R R Y R O A D W A S A L S O O V E R L A I D F O R T H E E N T I R E W I D T H O F T H E R O A D W A Y , F R O M T H E N O R T H P R O P E R T Y BO U N D A R Y T O T H E S O U T H P R O P E R T Y B O U N D A R Y O F W A T E R S E D G E W E S T , A N D T H E R E F O R E , H A S A M I D D L E P O R T I O N O F TH E R O A D W A Y T H A T I S E L I G I B L E F O R R E I M B U R S E M E N T . 4) P L E A S E R E F E R T O T H E K E Y N O T E L E G E N D T H I S S H E E T F O R D E S C R I P T I O N O F O V E R S I Z I N G I T E M S / A R E A S . P L E A S E A L S O RE F E R T O T H E A C C O M P A N Y I N G S P R E A D S H E E T W H I C H Q U A N T I F I E S T H E S E I T E M S / A R E A S , A N D T H E U N I T P R I C I N G F O R TH E S E I T E M S , A S P R O V I D E D B Y C O N N E L L R E S O U R C E S . 5) P E R C I T Y D I R E C T I O N , A S P H A L T S E C T I O N U N I T P R I C I N G I S O N L Y A L L O W E D T O U S E T H E L O C A L S T R E E T S E C T I O N U N I T P R I C E ; TH E R E F O R E , E V E N F O R T H E C O L L E C T O R A N D A R T E R I A L A S P H A L T S E C T I O N S ( D E P T H S ) , T H E L O C A L S E C T I O N ( D E P T H ) PR I C I N G M U S T B E U S E D E V E N F O R T H E S E L A R G E R S T R E E T S . 6) P L E A S E R E F E R T O T H E T Y P I C A L S T R E E T S E C T I O N S , T H I S S H E E T , F O R O V E R S I Z I N G D E T A I L S A N D D I M E N S I O N S . TY P I C A L C R O S S S E C T I O N 5 PKWY 50 ' R o a d w a y SE T B A C K FE N C E 7' ES M T UT I L 9' 9' UT I L ES M T 11 ' 8' BI K E LN6' PKWY 8' 6' BI K E LN 11 ' 50 ' R O A D W A Y 76 ' R O W 5'WALK 11 ' TR A V E L PA R K LN BI K E 8' PA R K 8' BI K E LN 12 ' 11 ' TR A V E L TR A V E L TR A V E L 8' 8' LE F T TU R N MI N O R C O L L E C T O R 2% m i n . 2% m i n . 3% m a x . 3% m a x . 5'WALK IN T E R S E C T I O N WH E R E N E E D E D (M O R N I N G S T A R W A Y - W E S T O F R O U N D A B O U T 13 ' L O C A L S T R E E T P O R T I O N 0. 5 ' O V E R S I Z E D S I D E W A L K P O R T I O N 4. 5 ' L O C A L S T R E E T S I D E W A L K P O R T I O N 2' O V E R S I Z E D P A R K W A Y P O R T I O N 5. 5 ' L O C A L S T R E E T P A R K W A Y P O R T I O N 13 ' L O C A L S T R E E T P O R T I O N 0. 5 ' O V E R S I Z E D S I D E W A L K P O R T I O N 4. 5 ' L O C A L S T R E E T S I D E W A L K P O R T I O N 2' O V E R S I Z E D P A R K W A Y P O R T I O N 5. 5 ' L O C A L S T R E E T P A R K W A Y P O R T I O N 20 ' O V E R S I Z E D ST R E E T P O R T I O N (B R I G H T W A T E R D R I V E - S O U T H O F R O U N D A B O U T TY P I C A L C R O S S S E C T I O N 11 48 ' R O A D W A Y 12 ' LN / BI K E 6' 6' BI K E LN 12 ' 12 ' LT . TU R N LA N E TU R N B E R R Y R O A D ( C . R . 1 1 ) 2% m i n . 2% m i n . 3% m a x . 3% m a x . TR A V E L L A N E TR A V E L L A N E CL IN T E R I M R O A D I M P R O V E M E N T S PROP ROW 60 ' E X I S T I N G R O W EXIST ROW TY P I C A L C R O S S S E C T I O N 10 40 ' R O A D W A Y ( V A R I E S ) 12 ' LN / BI K E 6' 8' BI K E LN 12 ' TU R N B E R R Y R O A D ( C R 1 1 ) 2% m i n . 2% m i n . 3% m a x . 3% m a x . TR A V E L L A N E TR A V E L L A N E CL Ut i l Es m t 15 ' PKWY10 ' WALK6' IN T E R I M R O A D I M P R O V E M E N T S PROP ROW 60 ' E X I S T I N G R O W 24 ' PR O P RO W EXIST ROW ST A : 1 9 + 7 3 . 6 3 T O 2 1 + 6 9 . 2 1 SH L D R TR A N S I T I O N Z O N E / R E D I R E C T ( W I D T H V A R I E S ) SH L D R 14 ' RT TU R N LA N E ST A : 2 3 + 1 1 . 8 9 T O 2 6 + 9 8 . 7 4 EXIST ROW 12 ' PR O P RO W EXIST ROW PKWY10 ' WALK6' Ut i l Es m t 15 ' PROP ROW VA R I E S 13 ' L O C A L S T R E E T P O R T I O N 1. 5 ' O V E R S I Z E D S I D E W A L K P O R T I O N 4. 5 ' L O C A L S T R E E T S I D E W A L K P O R T I O N 4' O V E R S I Z E D P A R K W A Y P O R T I O N 5. 5 ' L O C A L S T R E E T P A R K W A Y P O R T I O N 13 ' L O C A L S T R E E T P O R T I O N 25 ' L O C A L S T R E E T P O R T I O N (1 2 ' R T T U R N L A N E + 1 3 ' L O C A L P O R T I O N ) 1. 5 ' O V E R S I Z E D S I D E W A L K P O R T I O N 4. 5 ' L O C A L S T R E E T S I D E W A L K P O R T I O N 4' O V E R S I Z E D P A R K W A Y P O R T I O N 5. 5 ' L O C A L S T R E E T P A R K W A Y P O R T I O N 13 ' L O C A L S T R E E T P O R T I O N 22 ' O V E R S I Z E D ST R E E T P O R T I O N (1 1 ' E A C H S I D E O F C L , T H E N TA P E R S A N D V A R I E S AT N O R T H A N D S O U T H EN D S O F R O A D W A Y ) 22 ' O V E R S I Z E D ST R E E T P O R T I O N (1 1 ' E A C H S I D E O F C L , T H E N TA P E R S A N D V A R I E S AT N O R T H A N D S O U T H EN D S O F R O A D W A Y ) P R E L I M I N A R Y N O T F O R C O N S T R U C T I O N LE G E N D . AS P E N A Page 54 of 70 **This exhibit provides repay and street oversizing items/ areas for the Waters Edge West Development. Please refer to the Street Over- sizing Exhbit, dated December 23, 2022, that correspond to the items/ areas shown below. PERMANENT PUBLIC STREET IMPROVEMENTS INSTALLED FOR: Waters Edge Second Filing Date: Feb 28,2024 1. Construction Item Description Unit QTY Unit Price Total KEY NOTE LEGEND # TURNBERRY ROAD (CR11) EAST SIDE (Reference to Cadd Exhibit) 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 1,730 29.40$ $50,862.00 18 Fly Ash Stabilization (12" @ 12%)SY 1,730 9.45$ $16,348.50 18 FLY ASH MOBILZATION (Pro rated to 1.23/SY)SY 1,730 1.23$ $2,127.90 18 Sawcut Existing Pavement LF 1,216 3.85$ $4,681.60 17 Remove Existing Pavement SY 1,012 5.25$ $5,313.00 17 Sub Total $79,333.00 TURNBERRY ROAD (CR11) WEST SIDE 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 1,764 29.40$ $51,861.60 16 Fly Ash Stabilization (12" @ 12%)SY 1,764 9.45$ $16,669.80 16 FLY ASH MOBILZATION (Pro rated to 1.23/SY)SY 1,764 1.23$ $2,169.72 16 Parkway Oversizing SF 4,947 4.00$ $19,788.00 15 6" Thick Concrete Sidewalk SF 1,930 6.00$ $11,580.00 14 Fine Grade Under Sidewalk SF 1,930 0.73$ $1,408.90 14 Sawcut Existing Pavement LF 1,445 3.85$ $5,563.25 13 Remove Existing Pavement SY 1,229 5.25$ $6,452.25 13 Sub Total $115,493.52 MORNINGSTAR WAY (WEST OF ROUNDABOUT) 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 1,798 29.40$ $52,861.20 2 FLY ASH STABILIZATION (12" @ 12%)SY 1,798 9.45$ $16,991.10 2 FLY ASH MOBILIZATION ( Pro rated to 1.23/SY)SY 1,798 1.23$ $2,211.54 2 6" Thick Concrete Sidewalk SF 1,182 6.00$ $7,092.00 1 Fine Grade Under Sidewalk SF 1,182 0.73$ $862.86 1 Parkway Oversizing SF 5,234 4.00$ $20,936.00 3 Sub Total $100,954.70 BRIGHTWATER DRIVE (WEST SIDE) 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 1,353 29.40$ $39,778.20 5 FLY ASH STABILIZATION (12" @ 12%)SY 1,353 9.45$ $12,785.85 5 FLY ASH MOBILIZATION ( Pro rated to 1.23/SY)SY 1,353 1.23$ $1,664.19 5 6" Thick Concrete Sidewalk SF 867 6.00$ $5,202.00 4 Fine Grade Under Sidewalk SF 867 0.73$ $632.91 4 Parkway Oversizing SF 2,512 4.00$ $10,048.00 6 Sub Total $70,111.15 OV E R S I Z E EXHIBIT B STREET REIMBURSEMENT AGREEMENT OV E R S I Z E OV E R S I Z E RE P A Y Page 1 Page 55 of 70 Item Description Unit QTY Unit Price Total KEY NOTE LEGEND # BRIGHTWATER DRIVE (EAST SIDE, ADJACENT TO CITY PARK) 6" Thick,5' Wide Concrete Sidewalk, including subgrade prep.SF 486 6.00$ $2,916.00 4 Fine Grade Under Sidewalk SF 486 0.73$ $354.78 4 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 1,143 29.40$ $33,604.20 5 Fly Ash Stabilization (12" @ 12%)SY 1,143 9.45$ $10,801.35 5 FLY ASH MOBILIZATION ( Pro rated to 1.23/SY)SY 1,143 1.23$ $1,405.89 5 Remove Existing Pavement SY 0 5.25$ $0.00 Area east of CL Existing roadway, along Park Parkway Oversizing SF 2,002 4.00$ $8,008.00 6 Sub Total $57,090.22 BRIGHTWATER DRIVE (EAST SIDE) 6" Thick,5' Wide Concrete Sidewalk, including subgrade prep.SF 310 6.00$ $1,860.00 4 Fine Grade Under Sidewalk SF 310 0.73$ $226.30 4 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 186 29.40$ $5,468.40 5 Fly Ash Stabilization (12" @ 12%)SY 186 9.45$ $1,757.70 5 FLY ASH MOBILIZATION ( Pro rated to 1.23/SY)SY 186 1.23$ $228.78 5 Remove Existing Pavement (8,795 SY Total for M-Star and Brightwater, less 2096 SY East side by park) SY 2,625 5.25$ $13,781.25 Demo of Ex Asphalt M-Star & Brightwater Parkway Oversizing SF 1,217 4.00$ $4,868.00 6 Sub Total $28,190.43 MISCELLANEOUS PVMT MARKING LS 1 37,450.00$ $37,450.00 SIGNING LS 1 4,100.00$ $4,100.00 EROSION CONTROL LS 1 2,902.00$ $2,902.00 MOBILIZATION LS 1 18,684.00$ $18,684.00 CONSTRUCTION MANAGEMENT LS 1 4,396.00$ $4,396.00 TRAFFIC CONTROL LS 1 24,502.00$ $24,502.00 Sub Total $92,034.00 CONSTRUCTION TOTAL $543,207.02 2. Aspen Engineering - Civil Engineers Item Description Unit QTY Unit Price Total DESIGN COSTS INCURRED FOR THE PUBLIC STREET IMPROVEMENTS LS 1 58,800.00$ $58,800.00 TOTAL $58,800.00 3. Soil Testing for Roadway Portions Item Description Unit QTY Unit Price Total COST OF TESTING MATERIALS FOR CONSTRUCTION OF THE ROADWAY LS 1 6,329.00$ $6,329.00 TOTAL $6,329.00 4. Construction Survey Staking Item Description Unit QTY Unit Price Total CONSTRUCTION STAKING FOR ROADWAY IMPROVEMENTS LS 1 3,691.00$ $3,691.00 (Turnberry, Morningstar, Brightwater, Parkside)TOTAL $3,691.00 TOTAL COST OF THE PERMANENT PUBLIC STREET IMPROVEMENTS $612,027.02 OV E R S I Z E OV E R S I Z E OV E R S I Z E OV E R S I Z E OV E R S I Z I OV E R S I Z E Page 2 Page 56 of 70 Project:WATERS EDGE WEST (EXHIBIT B1) Developer:Actual Communities, Inc. Created by:Aspen Engineering Date:29-Feb-24 Brief Description of Eligible Improvements: Reimbursement request for applicable roadway oversized portions, per DA for Waters Edge West *Please note that the "adjacent parcel owner" costs are not the actual repay costs for City Parks, as the City of FC requires we reduce the asphalt costs to match the local street section. Repay will be based on the actual costs, by Connell for street sections. Roadway:Turnberry Road Item # Description of Item Unit Unit Price Developer City Adjacent Parcel Owner Developer City Adjacent Parcel Owner Total Cost 18 & 16 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 29.40$ 2,475 3,494 1,812 72,765.00$ 102,723.60$ 53,272.80$ 228,761.40$ 18 & 16 Fly Ash Stabilization (12" @ 12%)SY 9.45$ 2,475 3,494 1,812 23,388.75$ 33,018.30$ 17,123.40$ 73,530.45$ 18 & 16 FLY ASH MOBILZATION (Pro rated to 1.23/SY)SY 1.23$ 2,475 3,494 1,812 3,044.25$ 4,297.62$ 2,228.76$ 9,570.63$ 17 & 13 Sawcut Existing Pavement LF 3.85$ 1,403 2,661 1,216 5,401.55$ 10,244.85$ 4,681.60$ 20,328.00$ 17 & 13 Remove Existing Pavement SY 5.25$ 1,432 2,241 1,012 7,518.00$ 11,765.25$ 5,313.00$ 24,596.25$ 14 6" Thick Concrete Sidewalk SF 6.00$ 5,792 1,930 - 34,752.00$ 11,580.00$ -$ 46,332.00$ 14 Fine Grade Under Sidewalk SF 0.73$ 5,792 1,930 - 4,228.16$ 1,408.90$ -$ 5,637.06$ 15 Parkway Oversizing SF 4.00$ 6,875 4,947 - 27,500.00$ 19,788.00$ -$ 47,288.00$ Roadway Construction Sub-Total 178,597.71$ 194,826.52$ 82,619.56$ 456,043.79$ Roadway:Morningstar Way (West of Roundabout) Item # Description of Item Unit Unit Price Developer City Adjacent Parcel Owner Developer City Adjacent Parcel Owner Total Cost 2 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 29.40$ 2,502 1,798 0 73,558.80$ 52,861.20$ -$ 126,420.00$ 2 FLY ASH STABILIZATION (12" @ 12%)SY 9.45$ 2,502 1,798 0 23,643.90$ 16,991.10$ -$ 40,635.00$ 2 FLY ASH MOBILIZATION ( Pro rated to 1.23/SY)SY 1.23$ 2,502 1,798 0 3,077.46$ 2,211.54$ -$ 5,289.00$ 1 6" Thick Concrete Sidewalk SF 6.00$ 7,875 1,182 0 47,250.00$ 7,092.00$ -$ 54,342.00$ 1 Fine Grade Under Sidewalk SF 0.73$ 7,875 1,182 0 5,748.75$ 862.86$ -$ 6,611.61$ 3 Parkway Oversizing SF 4.00$ 9,625 5,234 0 38,500.00$ 20,936.00$ -$ 59,436.00$ -$ Roadway Construction Sub-Total 191,778.91$ 100,954.70$ -$ 292,733.61$ Roadway:Brightwater Drive (South of Roundabout) Item # Description of Item Unit Unit Price Developer City Adjacent Parcel Owner Developer City Adjacent Parcel Owner Total Cost 5 4" HMA/ 6" ABC pavement section, including subgrade prep (27.10+2.30)SY 29.40$ 3,704 2,682 2,600 108,897.60$ 78,850.80$ 76,440.00$ 264,188.40$ 5 FLY ASH STABILIZATION (12" @ 12%)SY 9.45$ 3,704 2,682 2,600 35,002.80$ 25,344.90$ 24,570.00$ 84,917.70$ 5 FLY ASH MOBILIZATION ( Pro rated to 1.23/SY)SY 1.23$ 3,704 2,682 2,600 4,555.92$ 3,298.86$ 3,198.00$ 11,052.78$ 4 6" Thick, 5' wide Concrete Sidewalk, including subgrade prep.SF 6.00$ 6,368 1,663 4,891 38,208.00$ 9,978.00$ 29,346.00$ 77,532.00$ 4 Fine Grade Under Sidewalk SF 0.73$ 6,368 1,663 4,891 4,648.64$ 1,213.99$ 3,570.43$ 9,433.06$ 6 Parkway Oversizing SF 4.00$ 8,882 5,731 5,450 35,528.00$ 22,924.00$ 21,800.00$ 80,252.00$ Demo Remove Existing Pavement (Old Brightwater accesss drive)SY 5.25$ 3,625 2,625 2,545 19,031.25$ 13,781.25$ 13,361.25$ 46,173.75$ -$ -$ Roadway Construction Sub-Total 245,872.21$ 155,391.80$ 172,285.68$ 573,549.69$ Construction Total 616,248.83$ 451,173.02$ 254,905.24$ 1,322,327.09$ Percentage 46.6%34.1%19.3%100.0% Soft Costs (based on a proportional split of construction costs) Item # Description of Item Unit Unit Price Developer City Adjacent Parcel Owner Developer City Adjacent Parcel Owner Total Cost Construction Surveying -----251,714.00$ 3,691.00$ 6,549.00$ 261,954.00$ Mobilization -----404,018.00$ 18,684.00$ 2,500.00$ 425,202.00$ Construction Management -----84,974.00$ 4,396.00$ 10,630.00$ 100,000.00$ Erosion Control -----116,863.00$ 2,902.00$ 3,071.00$ 122,836.00$ Traffic Control -----34,486.00$ 24,502.00$ 1,512.00$ 60,500.00$ Signage & Striping 72,915.00$ 41,550.00$ 2,935.00$ 117,400.00$ Geotech./Materials Testing -----294,661.00$ 6,329.00$ 7,718.00$ 308,708.00$ Design Engineering -----379,950.00$ 58,800.00$ 11,250.00$ 450,000.00$ Soft Cost Totals 1,639,581.00$ 160,854.00$ 46,165.00$ 1,846,600.00$ Totals:1,639,581.00 612,027.02 301,070.24 3,168,927.09 Quantity Breakdown Cost Breakdown Quantity Breakdown (Proportional Split) Cost Breakdown (Proportional Split) Quantity Breakdown Cost Breakdown Quantity Breakdown Cost Breakdown Page 57 of 70 1 1983.0007; JZR7HXE2KFXQ-1201763581-151 JOINT RESOLUTION OF THE BOARD OF DIRECTORS OF WATERS’ EDGE METROPOLITAN DISTRICT NOS. 1 & 2 PROHIBITING DISTRICT REIMBURSEMENT TO DEVELOPER FOR VARIOUS OVERSIZING IMPROVEMENT COSTS WHEREAS, Waters’ Edge Metropolitan District Nos. 1 & 2 (the “Districts”) are each a quasi-municipal corporation and political subdivision of the State of Colorado, duly organized pursuant to §§ 32-1-101, et seq., C.R.S.; and WHEREAS, pursuant to § 32-1-1001(1)(d), C.R.S., the Boards of Directors of the Districts (together, the “Board”) are authorized to enter into contracts and agreements affecting the affairs of the Districts; and WHEREAS, pursuant to § 32-1-1001(1)(h) C.R.S., the Board has the management, control, and supervision of all the business and affairs of the Districts; and WHEREAS, Waters’ Edge Developments Inc. (the “Developer”) constructed certain oversized improvements to portions of Brightwater Drive, Morningstar Way, and Turnberry Road, collector roadways within the Districts’ boundaries (the “Street Oversized Improvements”), and streets, curb, and sidewalk, around the park located centrally in the Districts (the “Oversized Park Improvements” and together with the Street Oversized Improvements, the “Oversized Improvements”); and WHEREAS, the Developer dedicated the Oversized Improvements to the City of Fort Collins (the “City”); and WHEREAS, the Developer seeks reimbursement from, and/or has been reimbursed by the City for, certain costs associated with the construction of the Oversized Improvements; and WHEREAS, the City seeks assurances from the Districts that, to the extent that the City reimburses the Developer for the Oversized Improvements, the Districts shall not reimburse the Developer for such Oversized Improvements; and WHEREAS, the District’s accountant has furnished an affidavit stating that the District has neither accepted costs for reimbursement nor reimbursed costs related to the Oversized Improvements. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD AS FOLLOWS: 1. To the extent the City reimburses the Developer, the Districts shall not reimburse the Developer for the costs associated with the Oversized Improvements. DocuSign Envelope ID: 447233FC-13A3-4784-AA09-DF60F2639731DocuSign Envelope ID: 6C949CA2-B25A-492E-AB92-2DDBE032380CDocuSign Envelope ID: 661543C3-2404-476A-89F1-8B3BCEADEA9E Page 58 of 70 2 1983.0007; JZR7HXE2KFXQ-1201763581-151 2. Nothing herein shall prohibit any of the Districts from reimbursing the Developer for any improvement costs that are eligible for reimbursement under the Districts’ service plan to the extent such improvement costs are not reimbursed by the City. 3. The Districts’ accountant shall ensure that the Districts do not reimburse the Developer, or its successors or assigns, for the cost of the Oversized Improvements that have been reimbursed by the City. [Signature Page Follows.] DocuSign Envelope ID: 447233FC-13A3-4784-AA09-DF60F2639731DocuSign Envelope ID: 6C949CA2-B25A-492E-AB92-2DDBE032380CDocuSign Envelope ID: 661543C3-2404-476A-89F1-8B3BCEADEA9E Page 59 of 70 3 1983.0007; JZR7HXE2KFXQ-1201763581-151 ADOPTED October 18, 2023. DISTRICTS: WATERS’ EDGE METROPOLITAN DISTRICT NO. 1, a quasi-municipal corporation and political subdivision of the State of Colorado By: Officer of the District Attest: By: DISTRICTS: WATERS’ EDGE METROPOLITAN DISTRICT NO. 2, a quasi-municipal corporation and political subdivision of the State of Colorado By: Officer of the District Attest: By: APPROVED AS TO FORM: WHITE BEAR ANKELE TANAKA & WALDRON Attorneys at Law General Counsel to the District Signature page to Resolution Prohibiting District Reimbursement to Developer For Various Oversizing Improvement Costs DocuSign Envelope ID: 447233FC-13A3-4784-AA09-DF60F2639731DocuSign Envelope ID: 6C949CA2-B25A-492E-AB92-2DDBE032380CDocuSign Envelope ID: 661543C3-2404-476A-89F1-8B3BCEADEA9E Page 60 of 70 SIMMONS & WHEELER, P.C. Certified Public Accountants 304 Inverness Way South, Suite 490, Englewood, CO 80112 (303) 689-0833 ACCOUNTANT'S Affidavit October 18, 2023 Board of Directors Water’s Edge Metropolitan Districts 1-2 c/o White, Bear, Ankele, Tanaka & Waldron, P.C. 2154 E. Commons Avenue, Suite 2000 Centennial, CO 80122 Re: Developer Reimbursement of oversized improvements This report summarizes the results of the procedures we have performed related to substantiation that the District has not accepted costs nor reimbursed Waters’ Edge Developments, Inc. (the “Developer”) for costs relating to oversized improvements to portions of Brightwater Drive, Morningstar Way, and Turnberry Road, and streets, curb, and sidewalk, around the park located centrally in the Districts The Developer has submitted documentation of $18,320,797.64 of expenditures for the District Eligible Improvements consisting of invoices and other supporting documentation as outlined in the Engineer’s Report and Verification of Costs Associated with Public Improvements No. 9 (“Report No. 9”). Schedio Group LLC, (“Schedio Group”), the District’s independent engineer, has reviewed certain underlying documentation and has submitted an Engineer’s Verification verifying $18,320,797.64 as being for soft, indirect and hard costs associated with the design and construction of Public Improvements and therefore eligible for Developer Reimbursement. According to Report No. 9, certain of those costs relate to the oversized improvements to portions of Brightwater Drive, Morningstar Way, and Turnberry Road, and streets, curb, and sidewalk around the park located centrally in the Districts (“Oversize Costs”). $612,027 of the above-referenced Oversize Costs have been identified by City of Fort Collins Staff as reimbursable by the City in accordance with the City’s oversizing reimbursement policy (“City-Reimbursable Oversize Costs”), and said City-Reimbursable Oversize Costs are not eligible to be acquired by the Water’s Edge Metropolitan Districts Nos. 1-5 or reimbursed to the Developer. None of Waters’ Edge District Nos. 1-5 have reimbursed the Developer for the above-referenced City-Reimbursable Oversize Costs, nor have Waters’ Edge Metropolitan District Nos. 1-5 acquired the improvements associated with said City-Reimbursable Oversize Costs. We have reviewed certain underlying documentation supporting Report No. 9 as necessary and appropriate, in accordance with accounting principles generally accepted in the United States of America, to verify the accuracy of the cost summary set forth in Report No. 9. I have discussed the allocation of costs relating to various invoices with Schedio Group, to determine the reasonableness of the allocation. We were not engaged to and did not conduct an examination in accordance with generally accepted auditing standards in the United States of America, the objective of which would be the expression of an opinion on the financial statements of the District. Accordingly, we do not express such an opinion. We performed our engagement as a consulting service under the American Institute of Certified Public Accountants' Statement of Standards for Consulting Services. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are not independent with respect to the District. Simmons & Wheeler, P.C. Page 61 of 70 1983.0007; 1006299 1 RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATERS’ EDGE METROPOLITAN DISTRICT NO. 3 DECLARING INACTIVE SPECIAL DISTRICT STATUS WHEREAS, the Waters’ Edge Metropolitan District No. 3 (the “District”) is a quasi- municipal corporation and political subdivision of the State of Colorado and is a duly organized and existing special district pursuant to §§ 32-1-101, et seq., C.R.S.; and WHEREAS, pursuant to § 32-1-104(3)(a), C.R.S., the board of directors of an “inactive special district,” as that term is defined in § 32-1-103(9.3), C.R.S., may adopt a resolution that declares and affirms its qualifications for inactive status; and WHEREAS, the Board of Directors for the District (the “Board”) has determined that the District qualifies as an inactive special district; and WHEREAS, the Board desires to declare and affirm the District’s qualifications for inactive status in this Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE DISTRICT AS FOLLOWS: 1. INACTIVE SPECIAL DISTRICT STATUS. The Board hereby declares and affirmatively states that the District meets the criteria for being an inactive special district as defined in § 32-1-103(9.3), C.R.S. The Board directs legal counsel to file a notice of inactive status with the agencies prescribed in § 32-1-104(3)(a), C.R.S., and, for each year thereafter in which the District qualifies as an inactive special district, to file a notice of continuing inactive status for the District pursuant to § 32-1-104(4), C.R.S. 2. AUTHORITY TO CONDUCT ELECTIONS. The Secretary of the District (the “Authorized Officer”) shall be authorized and is hereby directed by the Board to cause such actions to be taken as may be necessary, including but not limited to, the adoption of a resolution to conduct regular or special elections of the District (collectively, the “Election”) during the period of inactive status and to seek funding for such activities from the developer or owner(s) of property within the District’s boundaries, if necessary. The Board further hereby deems that the following shall apply to the Election: 2.1 The Election shall be conducted pursuant to §§ 32-1-101, et seq., C.R.S. (the “Special District Act”); §§ 1-13.5-101, et seq., C.R.S. (the “Colorado Local Government Election Code”); and §§ 1-1-101 through 1-13-101, et seq., C.R.S. (the “Uniform Election Page 62 of 70 1983.0007; 1006299 2 Code of 1992”), including any amendments thereto, and shall also comply with Article X, § 20 of the Colorado Constitution (“TABOR”), as necessary. 2.2 The Election shall be conducted as an independent mail ballot election unless otherwise deemed necessary and expressed in a separate election resolution adopted by the Board. 2.3 Pursuant to the authority set forth in § 1-1-111, C.R.S., the Board hereby appoints Ashley B. Frisbie, of the law firm of WHITE BEAR ANKELE TANAKA & WALDRON, Attorneys at Law, as the Designated Election Official (the “DEO”) of the District for the Election called by the Board, or called on behalf of the Board by the DEO, and hereby authorizes and directs the DEO to take all actions necessary for the proper conduct of the Election, including, if applicable, cancellation of the Election in accordance with § 1-13.5-513, C.R.S. 2.4 In the event the DEO is not available, the Authorized Officer shall be authorized to appoint a new DEO, who shall thereafter have all of the authority granted to the DEO by this Resolution, the Colorado Local Government Election Code and the Uniform Election Code of 1992. 3. COMPLIANCE MATTERS. The Board hereby directs legal counsel for the District to undertake to all action required of inactive special districts in accordance with law. 4. FULL FORCE AND EFFECT. This Resolution shall remain in full force and effect until repealed or superseded, in whole or part, by subsequent official action of the Board, including, but not limited to, a return to active status pursuant to § 32-1-104(3)(b), C.R.S. [Signature page follows.] Page 63 of 70 Page 64 of 70 1983.0007; 1006299 1 RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATERS’ EDGE METROPOLITAN DISTRICT NO. 4 DECLARING INACTIVE SPECIAL DISTRICT STATUS WHEREAS, the Waters’ Edge Metropolitan District No. 4 (the “District”) is a quasi- municipal corporation and political subdivision of the State of Colorado and is a duly organized and existing special district pursuant to §§ 32-1-101, et seq., C.R.S.; and WHEREAS, pursuant to § 32-1-104(3)(a), C.R.S., the board of directors of an “inactive special district,” as that term is defined in § 32-1-103(9.3), C.R.S., may adopt a resolution that declares and affirms its qualifications for inactive status; and WHEREAS, the Board of Directors for the District (the “Board”) has determined that the District qualifies as an inactive special district; and WHEREAS, the Board desires to declare and affirm the District’s qualifications for inactive status in this Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE DISTRICT AS FOLLOWS: 1. INACTIVE SPECIAL DISTRICT STATUS. The Board hereby declares and affirmatively states that the District meets the criteria for being an inactive special district as defined in § 32-1-103(9.3), C.R.S. The Board directs legal counsel to file a notice of inactive status with the agencies prescribed in § 32-1-104(3)(a), C.R.S., and, for each year thereafter in which the District qualifies as an inactive special district, to file a notice of continuing inactive status for the District pursuant to § 32-1-104(4), C.R.S. 2. AUTHORITY TO CONDUCT ELECTIONS. The Secretary of the District (the “Authorized Officer”) shall be authorized and is hereby directed by the Board to cause such actions to be taken as may be necessary, including but not limited to, the adoption of a resolution to conduct regular or special elections of the District (collectively, the “Election”) during the period of inactive status and to seek funding for such activities from the developer or owner(s) of property within the District’s boundaries, if necessary. The Board further hereby deems that the following shall apply to the Election: 2.1 The Election shall be conducted pursuant to §§ 32-1-101, et seq., C.R.S. (the “Special District Act”); §§ 1-13.5-101, et seq., C.R.S. (the “Colorado Local Government Election Code”); and §§ 1-1-101 through 1-13-101, et seq., C.R.S. (the “Uniform Election Page 65 of 70 1983.0007; 1006299 2 Code of 1992”), including any amendments thereto, and shall also comply with Article X, § 20 of the Colorado Constitution (“TABOR”), as necessary. 2.2 The Election shall be conducted as an independent mail ballot election unless otherwise deemed necessary and expressed in a separate election resolution adopted by the Board. 2.3 Pursuant to the authority set forth in § 1-1-111, C.R.S., the Board hereby appoints Ashley B. Frisbie, of the law firm of WHITE BEAR ANKELE TANAKA & WALDRON, Attorneys at Law, as the Designated Election Official (the “DEO”) of the District for the Election called by the Board, or called on behalf of the Board by the DEO, and hereby authorizes and directs the DEO to take all actions necessary for the proper conduct of the Election, including, if applicable, cancellation of the Election in accordance with § 1-13.5-513, C.R.S. 2.4 In the event the DEO is not available, the Authorized Officer shall be authorized to appoint a new DEO, who shall thereafter have all of the authority granted to the DEO by this Resolution, the Colorado Local Government Election Code and the Uniform Election Code of 1992. 3. COMPLIANCE MATTERS. The Board hereby directs legal counsel for the District to undertake to all action required of inactive special districts in accordance with law. 4. FULL FORCE AND EFFECT. This Resolution shall remain in full force and effect until repealed or superseded, in whole or part, by subsequent official action of the Board, including, but not limited to, a return to active status pursuant to § 32-1-104(3)(b), C.R.S. [Signature page follows.] Page 66 of 70 Page 67 of 70 1983.0007; 1006299 1 RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATERS’ EDGE METROPOLITAN DISTRICT NO. 5 DECLARING INACTIVE SPECIAL DISTRICT STATUS WHEREAS, the Waters’ Edge Metropolitan District No. 5 (the “District”) is a quasi- municipal corporation and political subdivision of the State of Colorado and is a duly organized and existing special district pursuant to §§ 32-1-101, et seq., C.R.S.; and WHEREAS, pursuant to § 32-1-104(3)(a), C.R.S., the board of directors of an “inactive special district,” as that term is defined in § 32-1-103(9.3), C.R.S., may adopt a resolution that declares and affirms its qualifications for inactive status; and WHEREAS, the Board of Directors for the District (the “Board”) has determined that the District qualifies as an inactive special district; and WHEREAS, the Board desires to declare and affirm the District’s qualifications for inactive status in this Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE DISTRICT AS FOLLOWS: 1. INACTIVE SPECIAL DISTRICT STATUS. The Board hereby declares and affirmatively states that the District meets the criteria for being an inactive special district as defined in § 32-1-103(9.3), C.R.S. The Board directs legal counsel to file a notice of inactive status with the agencies prescribed in § 32-1-104(3)(a), C.R.S., and, for each year thereafter in which the District qualifies as an inactive special district, to file a notice of continuing inactive status for the District pursuant to § 32-1-104(4), C.R.S. 2. AUTHORITY TO CONDUCT ELECTIONS. The Secretary of the District (the “Authorized Officer”) shall be authorized and is hereby directed by the Board to cause such actions to be taken as may be necessary, including but not limited to, the adoption of a resolution to conduct regular or special elections of the District (collectively, the “Election”) during the period of inactive status and to seek funding for such activities from the developer or owner(s) of property within the District’s boundaries, if necessary. The Board further hereby deems that the following shall apply to the Election: 2.1 The Election shall be conducted pursuant to §§ 32-1-101, et seq., C.R.S. (the “Special District Act”); §§ 1-13.5-101, et seq., C.R.S. (the “Colorado Local Government Election Code”); and §§ 1-1-101 through 1-13-101, et seq., C.R.S. (the “Uniform Election Page 68 of 70 1983.0007; 1006299 2 Code of 1992”), including any amendments thereto, and shall also comply with Article X, § 20 of the Colorado Constitution (“TABOR”), as necessary. 2.2 The Election shall be conducted as an independent mail ballot election unless otherwise deemed necessary and expressed in a separate election resolution adopted by the Board. 2.3 Pursuant to the authority set forth in § 1-1-111, C.R.S., the Board hereby appoints Ashley B. Frisbie, of the law firm of WHITE BEAR ANKELE TANAKA & WALDRON, Attorneys at Law, as the Designated Election Official (the “DEO”) of the District for the Election called by the Board, or called on behalf of the Board by the DEO, and hereby authorizes and directs the DEO to take all actions necessary for the proper conduct of the Election, including, if applicable, cancellation of the Election in accordance with § 1-13.5-513, C.R.S. 2.4 In the event the DEO is not available, the Authorized Officer shall be authorized to appoint a new DEO, who shall thereafter have all of the authority granted to the DEO by this Resolution, the Colorado Local Government Election Code and the Uniform Election Code of 1992. 3. COMPLIANCE MATTERS. The Board hereby directs legal counsel for the District to undertake to all action required of inactive special districts in accordance with law. 4. FULL FORCE AND EFFECT. This Resolution shall remain in full force and effect until repealed or superseded, in whole or part, by subsequent official action of the Board, including, but not limited to, a return to active status pursuant to § 32-1-104(3)(b), C.R.S. [Signature page follows.] Page 69 of 70 Page 70 of 70