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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 10/01/2019 - COMPLETE AGENDACity of Fort Collins Page 1 Wade Troxell, Mayor City Council Chambers Kristin Stephens, District 4, Mayor Pro Tem City Hall West Susan Gutowsky, District 1 300 LaPorte Avenue Julie Pignataro, District 2 Fort Collins, Colorado Ken Summers, District 3 Ross Cunniff, District 5 Cablecast on FCTV Channel 14 Emily Gorgol, District 6 and Channel 881 on the Comcast cable system Carrie Daggett Darin Atteberry Delynn Coldiron City Attorney City Manager City Clerk Regular Meeting October 1, 2019 (Amended 9/30/19) Persons wishing to display presentation materials using the City’s display equipment under the Citizen Participation portion of a meeting or during discussion of any Council item must provide any such materials to the City Clerk in a form or format readily usable on the City’s display technology no later than two (2) hours prior to the beginning of the meeting at which the materials are to be presented. NOTE: All presentation materials for appeals, addition of permitted use applications or protests related to election matters must be provided to the City Clerk no later than noon on the day of the meeting at which the item will be considered. See Council Rules of Conduct in Meetings for details. The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221- 6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Proclamations and Presentations 5:15 p.m. A. Proclamation Declaring the Month of October as National Cybersecurity Awareness Month. B. Proclamation Declaring the Month of October as Domestic Violence Awareness Month. C. Proclamation Declaring the Week of October 6-12, 2019 as Public Power Week. D. Proclamation Recognizing the Colorado State University Diversity Symposium Occurring between October 14-October 18, 2019. E. Proclamation Declaring September 15-October 15, 2019 as Hispanic/Latinx Heritage Month. City of Fort Collins Page 2 Regular Meeting 6:00 p.m.  PLEDGE OF ALLEGIANCE  CALL MEETING TO ORDER  ROLL CALL  AGENDA REVIEW: CITY MANAGER  City Manager Review of Agenda.  Consent Calendar Review This Review provides an opportunity for Council and citizens to pull items from the Consent Calendar. Anyone may request an item on this calendar be “pulled” off the Consent Calendar and considered separately. o Council-pulled Consent Calendar items will be considered before Discussion Items. o Citizen-pulled Consent Calendar items will be considered after Discussion Items.  PUBLIC COMMENT Individuals may comment regarding items scheduled on the Consent Calendar and items not specifically scheduled on the agenda. Comments regarding land use projects for which a development application has been filed should be submitted in the development review process** and not to the Council.  Those who wish to speak are asked to sign in at the table in the lobby (for recordkeeping purposes).  All speakers will be asked by the presiding officer to identify themselves by raising their hand, and then will be asked to move to one of the two lines of speakers (or to a seat nearby, for those who are not able to stand while waiting).  The presiding officer will determine and announce the length of time allowed for each speaker.  Each speaker will be asked to state his or her name and general address for the record, and to keep comments brief. Any written comments or materials intended for the Council should be provided to the City Clerk.  A timer will beep once and the timer light will turn yellow to indicate that 30 seconds of speaking time remain, and will beep again and turn red when a speaker’s time to speak has ended. [**For questions about the development review process or the status of any particular development, citizens should consult the Development Review Center page on the City’s website at fcgov.com/developmentreview, or contact the Development Review Center at 221-6750.]  PUBLIC COMMENT FOLLOW-UP City of Fort Collins Page 3 Consent Calendar The Consent Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar to be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Pulled Consent Items. Items remaining on the Consent Calendar will be approved by City Council with one vote. The Consent Calendar consists of: ● Ordinances on First Reading that are routine; ● Ordinances on Second Reading that are routine; ● Those of no perceived controversy; ● Routine administrative actions. If the presiding officer determines that the number of items pulled from the Consent Calendar by citizens is substantial and may impair the Council’s ability to complete the planned agenda, the presiding officer may declare that the following process will be used to simplify consideration of the Citizen-Pulled Consent Items: (1) All citizen-pulled items (to be listed by number) will be considered as a group under the heading “Consideration of Citizen-Pulled Consent Items.” (2) At that time, each citizen wishing to speak will be given a single chance to speak about any and all of the items that have been moved to that part of the agenda. (3) After the citizen comments, any Councilmember may specify items from the list of Citizen-Pulled Consent Items for Council to discuss and vote on individually. Excluding those specified items, Council will then adopt all “Citizen-Pulled Consent Items” as a block, by a single motion, second and vote. (4) Any Citizen-Pulled Consent Items that a Councilmember has asked to be considered individually will then be considered using the regular process for considering discussion items. 1. Second Reading of Ordinance No. 112, 2019, Appropriating Prior Year Reserves in the Data and Communications Fund for Implementation of Electronic Plan Review. This Ordinance, unanimously adopted on First Reading on September 17, 2019, appropriates funds from the reserves of the Data and Communications fund for implementation of electronic plan review as part of the building permit process. 2. Second Reading of Ordinance No. 113, 2019, Amending the City of Fort Collins District-Precinct Map to Reflect Changes in County Precinct Boundaries and Waiving the Redistricting Requirement of Section 7-87(d) of the City Code. This Ordinance, unanimously adopted on First Reading on September 17, 2019, aligns City precinct boundaries with County precinct boundaries as required by Section 7-66 of the City Code. None of the divided precincts affect Council district boundaries. 3. Second Reading of Ordinance No. 114, 2019, Vacating Portions of Rights-of-Way Dedicated on the Waterfield Third Filing Plat. This Ordinance, unanimously adopted on First Reading on September 17, 2019, vacates various rights-of-way dedicated on the Waterfield Third Filing plat that are no longer necessary or desirable to retain for roadway purposes. The rights-of-way vacation includes various public road rights-of-way within the Waterfield development. The property is being sold to a new developer who is proposing a revised project layout. The existing on-site road rights-of-way need to be vacated prior to recording the new plat. The vacation will not impact any existing rights-of-way of adjacent public streets (North Timberline Road, East Vine Drive, East Suniga Road, Merganser Drive (south of Suniga Road), City of Fort Collins Page 4 Turnberry Road or Conifer Street). The property is currently proposed to be replatted as Waterfield Fourth Filing. 4. First Reading of Ordinance No. 120, 2019, Appropriating Prior Year Reserves, Unanticipated Revenue and Authorizing Transfer of Funds for the Small Business Revolving Loan Fund Program. The purpose of this item is to authorize the transfer of funds from the Keep Fort Collins Great Fund to the General Fund and appropriate therein and to appropriate reserves and current year revenue from Platte River Power Authority (PRPA) Economic Development Program funds in the General Fund to create the City of Fort Collins Revolving Loan Fund for small businesses and startup companies operating in Fort Collins. The City will use the funds to support access to capital for small businesses in Fort Collins, which have historically not had access to traditional financial capital markets (“under banked” or “non-bankable”) The demographic focus of this program will be low-income, minority, veteran, and women-owned small businesses. 5. First Reading of Ordinance No. 115, 2019, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts of Funds or Projects. The purpose of this Annual Adjustment Ordinance is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2019 annual budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions, donations and grants that have been paid to City departments to offset specific expenses. 6. Items Relating to Objects Obscuring Traffic Control Devices. A. First Reading of Ordinance No. 117, 2019, Amending the Code of the City of Fort Collins as it Relates to Objects Obscuring Traffic Control Devices. B. First Reading of Ordinance No. 118, 2019, Amending the Fort Collins Traffic Code as it Relates to Objects Obscuring Traffic Control Devices. The purpose of this item is to consider revisions to the Fort Collins City Code and the City Traffic Code as they relate to the responsibilities for pruning private trees, shrubs or other plants that overhang or otherwise encroach on the public right-or-way. The changes will make the requirements in the two Codes consistent and provide a level of flexibility for City staff to immediately address issues of safety in the public right-of-way at its own expense, if needed. 7. Resolution 2019-094 Approving the Purchase of Two Biogas Powered Generator Sets from Woodward, Inc. as an Exception to the Competitive Purchasing Process. The purpose of this item is to approve an exception to the competitive purchasing process for the purchase of two biogas powered combined heat and power (CHP) generator sets for the Drake Water Reclamation Facility (DWRF) in support of the City’s climate action plan (CAP) goals. Woodward has been collaborating with City staff and consultants for several years working in the design of a cost- efficient combined heat and power (CHP) system that can utilize biogas produced at DWRF. Purchasing the CHP generator set through Woodward provides the most economical procurement while allowing Woodward to leverage equipment provided by the company, its vendors, and clients. 8. Resolution 2019-095 Authorizing the City Manager to Execute an Agreement Regarding Use of the Munroe Canal. The purpose of this item is to approve execution of an agreement between the City of Fort Collins, through Fort Collins Utilities, and multiple other parties regarding operations of the Munroe Canal that supplies water to Fort Collins Utilities via the Pleasant Valley Pipeline. The agreement mainly outlines roles and responsibilities among these parties that have been vague since pipeline operations started in 2003 and will greatly improve future operations, but also includes reasonable payments to the North Poudre Irrigation Company for its operational efforts. City of Fort Collins Page 5 9. Items Relating to Agreements for Delivery of Horsetooth Reservoir Water During the Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet. A. Resolution 2019-096 Authorizing the City Manager to Execute an Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, the North Weld County Water District, and the Northern Colorado Water Conservancy District Acting By and Through the Pleasant Valley Pipeline Water Activity Enterprise Regarding a Supplemental Means to Deliver Horsetooth Reservoir Water to the Fort Collins Water Treatment Facility and Soldier Canyon Water Treatment Plant (Pleasant Valley Pipeline Modifications and Use). B. Resolution 2019-097 Authorizing the City Manager to Execute an Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, the North Weld County Water District, and the City of Greeley Regarding a Supplemental Means to Deliver Horsetooth Reservoir Water to the Fort Collins Water Treatment Facility and Soldier Canyon Water Treatment Plant (Greeley Infrastructure Modifications and Use). C. Resolution 2019-098 Authorizing the City Manager to Execute an Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District Regarding a Supplemental Means to Deliver Horsetooth Reservoir Water to the Fort Collins Water Treatment Facility and Soldier Canyon Water Treatment Plant (Project Work-New Infrastructure-New Property Rights). The purpose of this item is to authorize the City Manager to execute three agreements between combinations of the City of Fort Collins (City), Fort-Collins Loveland, East Larimer County, and North Weld County water districts (the Tri-Districts), the City of Greeley (Greeley), and the Northern Colorado Water Conservancy District (Northern Water) regarding a project to provide a temporary backup water supply pumping system during an October-November 2020 shutdown of the Soldier Canyon Dam Outlet pipeline (Soldier Canyon Outlet) which conveys water from Horsetooth Reservoir to the two drinking water treatment plants serving Fort Collins and surrounding areas. The pumping system is intended as a backup supply system to the primary Cache la Poudre River water supply during the 60- day long planned outage of the Soldier Canyon Outlet. Three separate agreements are needed because each agreement concerns discrete aspects of this project, involving specific infrastructure and set of entities: (A) an agreement between the City, the Tri- Districts, and Northern Water regarding the use of Northern Water’s Pleasant Valley Pipeline; (B) an agreement between the City, the Tri-Districts, and Greeley regarding the use of Greeley’s infrastructure; and (C) an agreement between the City and the Tri-Districts regarding the ownership, design, construction, and operation of new infrastructure. 10. Resolution 2019-099 Adopting an Updated Process for City Council Evaluation of the Performance of the City Manager, City Attorney and Chief Judge and Establishing Benchmark Cities. The purpose of this item is to modify the performance evaluation process for the City Manager, City Attorney and Chief Judge to add flexibility in the timing of performance and salary information and discussions. The item also provides a recommended list of compensation benchmark cities for Council’s direct report employees. END CONSENT  CONSENT CALENDAR FOLLOW-UP This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar.  STAFF REPORTS Community Dashboard Metric - Poudre Fire Authority Metrics (staff: Ron Simms) City of Fort Collins Page 6  COUNCILMEMBER REPORTS  CONSIDERATION OF COUNCIL-PULLED CONSENT ITEMS Discussion Items The method of debate for discussion items is as follows: ● Mayor introduces the item number, and subject; asks if formal presentation will be made by staff ● Staff presentation (optional) ● Mayor requests citizen comment on the item (three minute limit for each citizen) ● Council questions of staff on the item ● Council motion on the item ● Council discussion ● Final Council comments ● Council vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 11. Resolution 2019-100 Regarding Immigration Conditions at the Southern Border of the United States and Its Impact on the Fort Collins Community. (staff: Tyler Marr; 5 minute presentation; 45 minute discussion) The purpose of this item is to acknowledge the impact that national events have on the immigrant communities within Fort Collins, state that Fort Collins welcomes those lawfully seeking asylum, and to encourage participation with public safety agencies and in the decennial Census. The resolution also calls upon the United States Congress and the Trump administration to take action to prevent any inhumane treatment at the southern border and to quickly create a sustainable pathway for immigration into the United States, and sets out related follow up actions. 12. Items Relating to the Northfield Metro District Nos. 1 through 3 Consolidated Service Plan. (staff: Josh Birks; 10 minute staff presentation; 45 minute discussion) A. Resolution 2019-101 Reconsidering, Rehearing and Approving the Consolidated Service Plan for Northfield Metropolitan District Nos. 1-3. B. Resolution 2019-102 Making Findings, Determinations and Conclusions Denying on Rehearing the Consolidated Service Plan for Northfield Metropolitan District Nos. 1-3. The purpose of this item is for City Council to consider on rehearing approval of the Northfield Metropolitan District Nos. 1 through 3 Consolidated Service Plan (the “Service Plan”) or, alternatively, to deny the Service Plan on rehearing. Resolution 2019-101 is what Council should adopt to approve the Service Plan. Resolution 2019-102 is what Council should adopt to deny the Service Plan. If Resolution 2019-102 is adopted to deny the Service Plan, Council should also decide in Section 5 of the Resolution what its reasons are for denial on the basis of non-compliance with the Council’s current Metro District Policy (Policy). The Policy contemplates that only Service Plans that provide “extraordinary public benefits that align with the goals and objectives of the City” are favored for approval. City of Fort Collins Page 7 The developer of the proposed Northfield Development has submitted the Service Plan to support the proposed development of approximately 56 acres located north of Vine Street on the west side of Lindenmeier Road/Lemay Avenue (southeast of the Lake Canal and north of the to-be designated historic Alta Vista neighborhood). The development is anticipated to include 442 residential units and a mixed-use center that will offer light commercial use on the first floor, residential for-rent units on the second floor, and small amenities open to the public. The project has committed to provide approximately 15 percent for-sale affordable housing units. A Mill Levy Cap of 50.00 mills has been proposed under the Service Plan to support the project. As per the Council’s Metro District Policy, proceedings for a public hearing for a Metro District Service Plan public hearing are as follows: 1. Announcement of item 2. Consideration of any procedural issues 3. Explanation of the application by City staff 4. Presentation by the applicant (suggested time: 15 minutes) 5. Public testimony regarding the application 6. Rebuttal testimony by the applicant (suggested time: 10 minutes) 7. Councilmember questions of City staff and the applicant 8. Motion, discussion and vote by City Council. The public hearing for this Service Plan was previously noticed in accordance with Council’s Metro District Policy to be conducted at Council’s August 20, 2019, meeting. However, Council voted at that meeting, as authorized in Section 2.c. of the Council’s Rules of Procedure, to continue this matter to the Council’s next regular meeting, which is this September 3, 2019, meeting. The applicant mailed on August 22, 2019, notice of this continuance to the fee-title owners of property within the proposed Districts and published this notice in the Coloradoan on August 24, 2019. At its September 3, 2019 meeting, the Council adopted a motion to again continue the hearing, rescheduling the hearing for the September 17, 2019 meeting. At its September 17, 2019, meeting, City Council voted to deny approval of the Service Plan. However, at its September 24, 2019, meeting, City Council voted to reconsider and re-hear the application, which was scheduled for this October 1, 2019 meeting. 13. First Reading of Ordinance No. 116, 2019, Approving a One-Time Payment of Accrued, Unused 2018 Paid Time Off Hours to the City Manager and City Attorney. (staff: Teresa Roche, Jamie Heckman; 5 minute staff presentation; 15 minute discussion) The purpose of this item is to approve a one-time payment of accrued, unused 2018 paid time off hours to the City Manager and City Attorney.  CONSIDERATION OF CITIZEN-PULLED CONSENT ITEMS  OTHER BUSINESS A. Possible consideration of the initiation of new ordinances and/or resolutions by Councilmembers (Three or more individual Councilmembers may direct the City Manager and City Attorney to initiate and move forward with development and preparation of resolutions and ordinances not originating from the Council's Policy Agenda or initiated by staff.) City of Fort Collins Page 8  ADJOURNMENT A. Consideration of a motion to adjourn to 6:00 p.m., Tuesday, October 8, 2019 for a possible executive session. Every Council meeting will end no later than 10:30 p.m., except that: (1) any item of business commenced before 10:30 p.m. may be concluded before the meeting is adjourned and (2) the City Council may, by majority vote, extend a meeting until no later than 12:00 a.m. for the purpose of considering additional items of business. Any matter which has been commenced and is still pending at the conclusion of the Council meeting, and all matters scheduled for consideration at the meeting which have not yet been considered by the Council, will be continued to the next regular Council meeting and will be placed first on the discussion agenda for such meeting. PROCLAMATION WHEREAS, National Cybersecurity Awareness Month, celebrated every October, remains a collaborative effort between government and industry to ensure that individually and collectively we have the resources needed to stay safe and remain secure online; and WHEREAS, National Cybersecurity Awareness Month is a time to raise awareness about the importance of cybersecurity; and to focus on how cybersecurity is a shared responsibility; WHEREAS, the City of Fort Collins recognizes the importance in identifying, responding to and protecting against cyber threats that may have significant impact to our individual and collective security and privacy; and WHEREAS, critical infrastructure sectors are increasingly reliant on information systems to support financial services, energy, telecommunications, transportation, utilities, health care, and emergency response systems; and WHEREAS, the 2019 Cybersecurity Awareness Month’s focus is: Stay Safe Online and breaks it down into three areas of responsibility: Own It, Secure It and Protect It; and WHEREAS, maintaining the security of cyberspace is a shared responsibility in which each of us elected officials, City staff and community members, has a critical role to play. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins, do hereby proclaim October 2019 as NATIONAL CYBERSECURITY AWARENESS MONTH and encourage everyone to learn about cybersecurity and put that knowledge into practice in their homes, schools, workplaces, and businesses. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 9 PROCLAMATION WHEREAS, across our state and our nation, one in three women and one in four men will be victims of domestic violence and/or intimate partner abuse in their lifetime, and more than 15 million children are exposed to domestic violence each year; and WHEREAS, during National Domestic Violence Awareness Month, we renew our commitment to prevent domestic violence, hold perpetrators accountable for their actions, support survivors and bring hope and healing to those affected by it; and WHEREAS, in Fort Collins, Crossroads Safehouse shelters over 400 individuals for 16,000 nights of safety and shelter annually. Additionally, over 2,000 men, women, and children receive advocacy, legal advice and representation, and support through the Domestic Abuse Response Team, and over 3,000 individuals are reached through educational presentations in the community and through Poudre School District; and WHEREAS, Crossroads Safehouse received over 6,000 non-crisis calls and 1,400 crisis calls to the 24/7/365 crisis hotline; and WHEREAS, many of our local nonprofit agencies, like Crossroads Safehouse, and their volunteers offer critical assistance and support to victims in need. Victims and their children receive potentially lifesaving crisis intervention and shelter, food, clothing, advocacy and counseling, longer-term housing options, and legal resources, as well as referral and other supportive services to rebuild their lives free from violence and abuse. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins, do hereby proclaim the month of October as DOMESTIC VIOLENCE AWARENESS MONTH in the city of Fort Collins and ask the citizens of this community to help raise awareness about how to prevent, recognize, and stop domestic violence. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 1st day of October, A.D. 2019. __________________________________ ATTEST: Mayor _____________________________ City Clerk Packet Pg. 10 PROCLAMATION WHEREAS, we the citizens of Fort Collins, Colorado, value local control of our community services and have chosen to operate a community-owned, locally controlled, not-for- profit electric utility; and WHEREAS, Fort Collins Utilities, Light and Power is the second largest municipal electric utility in Colorado; and WHEREAS, Fort Collins Utilities with Platte River Power Authority, provide our homes, businesses and schools with safe, reliable, environmentally responsible and cost-effective electricity; and WHEREAS, this year marks the 50 th anniversary of the start of the undergrounding program at Fort Collins Utilities. Fort Collins was one of the first cities to take on this type of project and the benefits continue to this day. Service is provided to over 70,500 homes and businesses, over 55+ square miles and is 99% underground; and WHEREAS, Fort Collins Utilities and Platte River Power Authority are valuable community partners that contribute substantially to the well-being of local citizens through energy efficiency, customer service, environmental protection, economic development and safety awareness. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins, do hereby proclaim the week of October 6-12, 2019, as PUBLIC POWER WEEK in Fort Collins to honor Fort Collins Utilities and Platte River Power Authority’s consumer- owners, policy makers, and employees who work together to provide the best possible electric service to our community. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 11 PROCLAMATION WHEREAS, as Colorado's first public institution of higher learning and only land-grant institution, Colorado State University consistently ranks among the top public universities in the United States in terms of educational quality and affordability; and WHEREAS, Colorado State University stands as one of the nation's premier research universities, maintaining world-class academic programs and is the largest employer and primary economic driver in Fort Collins and Northern Colorado; and WHEREAS, Colorado State University is committed to access, equity and inclusion in education to more than 32,000 students annually; and WHEREAS, October 14-18, 2019, Colorado State University will host the 19th annual Diversity Symposium Conference; and WHEREAS, this conference serves as an opportunity for the Colorado State University and Fort Collins communities to come together to learn and engage in critical dialogue related to issues of education, diversity, inclusion, equity and respect; and WHEREAS, Colorado State University and Fort Collins have grown up together and partnered in making this city one of the nation’s most desirable places to live and work; and WHEREAS, to remain one of the nation’s most desirable places to live and work, we must remain committed to educating our community about inclusion and respect of all individuals. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins and proud alumnus, do hereby recognize the COLORADO STATE UNIVERSITY DIVERSITY SYMPOSIUM occurring October 14 through October 18, and its role in improving the lives of the community members of this city, this state and the world. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 1st day of October, A.D. 2019. __________________________________ ATTEST: Mayor _________________________________ City Clerk Packet Pg. 12 PROCLAMATION WHEREAS, Hispanic/Latinx Heritage Month celebrates the diversity of the Fort Collins community and has become a national observance celebration since 1988 when it was approved by the 100th Congress; and WHEREAS, the Hispanic/Latinx community of Fort Collins has designated September 15-October 15, 2019 as observance of Hispanic/Latinx Heritage Month Celebration; and WHEREAS, as the largest minority population in Fort Collins, the Latinx community has historically faced cultural and systemic barriers to inclusion and equitable treatment in this City; and WHEREAS, despite such discrimination, Fort Collins is proud to be home to American citizens of Hispanic and Latinx descent, and Hispanic Latinx immigrants who work tirelessly to remove said barriers and advance the cause of equality for all in our community; and WHEREAS, Hispanic/Latinx communities have played an important role in our strength and prosperity in the City of Fort Collins by making the community vibrant, strong, and productive. Their tenacity, energy and leadership are woven into the culture of Fort Collins; and WHEREAS, the City celebrates Hispanic/Latinx community members who work tirelessly to make our city more welcoming and equitable such as Johanna Ulloa Girón, a Colombian immigrant and an American citizen that contributes to many Latinx initiatives, coalitions, and community organizations; Adriana Quintero who worked at the Family Center over 25 years Latinx/Hispanic families; Laura Barajas and Stephanie Torres, Latina community organizers in Fort Collins; and WHEREAS, the Fort Collins City Council and staff have committed to make Fort Collins a welcoming community for all citizens, and we recognize there is more work ahead of us. Equality and inclusion are fundamental community values in Fort Collins, ensuring that all residents feel respected, valued and affirmed. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins, do hereby proclaim September 15-October 15, 2019 as HISPANIC/LATINX HERITAGE MONTH in Fort Collins and encourage residents to participate in and to celebrate the cultural riches that our Hispanic community has to offer. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 1st day of October, A.D. 2019. ___________________________________ ATTEST: Mayor _________________________________ City Clerk Packet Pg. 13 Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Tom Leeson, Director, Comm Dev & Neighborhood Svrs Brad Yatabe, Legal SUBJECT Second Reading of Ordinance No. 112, 2019, Appropriating Prior Year Reserves in the Data and Communications Fund for Implementation of Electronic Plan Review. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 17, 2019, appropriates funds from the reserves of the Data and Communications fund for implementation of electronic plan review as part of the building permit process. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, September 17, 2019 (w/o attachments) (PDF) 2. Ordinance No. 112, 2019 (PDF) 1 Packet Pg. 14 Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY September 17, 2019 City Council STAFF Tom Leeson, Director, Comm Dev & Neighborhood Svrs Brad Yatabe, Legal SUBJECT First Reading of Ordinance No. 112, 2019, Appropriating Prior Year Reserves in the Data and Communications Fund for Implementation of Electronic Plan Review. EXECUTIVE SUMMARY The purpose of this item is to appropriate funds from the reserves of the Data and Communications Fund for implementation of electronic plan review as part of the building permit process. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION This appropriation is considered Phase II of the overall Electronic Plan Review project. The first phase included a software upgrade to the permit tracking software, Accela, as well as needed hardware upgrades. This appropriation request will enable the City of Fort Collins to make improvements to the building permit electronic plan review, and the funds will be utilized to support consulting services from TruePoint Solutions to assist the City of Fort Collins IT and Development Services (Building) Departments with the implementation of improvements to the existing Accela system. Implementation of these improvements is intended to help better track and manage improved building permit processes. This phase of the project is anticipated to be complete by Q1 2020, and following that, a third phase is expected to be needed. The scope of this project will include the following elements: Business and System Analysis Support: Identify options for improving Accela system features and functionality to better support the City’s proposed building permit process improvements. Specific activities include:  Confirmation of high-level business requirements  Further development/confirmation of detailed requirements for new/improved functionality  Review and prioritization of new/improved feature and functionality options  Confirmation of the overall solution design  Identification of specific configuration and scripting changes in Accela that will provide features/functionality required to best support building permit process improvements  Identification of new reports and/or changes to existing reports needed to support building permit process improvements  Detailed planning for development/implementation of configuration and scripting changes ATTACHMENT 1 COPY 1.1 Packet Pg. 15 Attachment: First Reading Agenda Item Summary, September 17, 2019 (w/o attachments) (8320 : SR 112 Data and Communications Fund Agenda Item 5 Item # 5 Page 2 Configuration and Scripting: Develop and implement the necessary Accela configuration and scripting changes to deliver the feature and functionality improvements based on the detailed requirements identified under the Business and System Analysis Support task. Report Design and Development: Design and develop reports necessary to support the City’s reporting requirements as defined under the Business and Systems Analysis service item. Testing Support: TruePoint will provide assistance to City staff in testing of improved features and functionality under this service item. Examples of such support include assisting with the development of test plans/procedures, assistance with training staff who will be performing testing, and explanation/documentation/demonstration of features/functionality to be tested. Go Live/Post Go-Live Support: TruePoint will provide support and assistance to City staff in the adoption and use of new features and functionality as they are initially implemented in the production environment. This task also includes activities such as assistance with troubleshooting and fixes/changes to functionality if issues or questions arise after implementation in the City production environment. CITY FINANCIAL IMPACTS The total cost of implementation for this phase is $350,000. The funding source is the reserves of the Data and Communications Fund. This amount represents the TruePoint time and reimbursable direct costs ($316,800) plus additional funds to account for potential change in scope or unanticipated work order items ($33,200). PUBLIC OUTREACH Although there was no formal public outreach; designers, developers, and contractors that have been using the current level of electronic plan review have widely praised the City’s efforts to move in this direction and anticipate a wider use for electronic plan review in all aspects of development review. COPY 1.1 Packet Pg. 16 Attachment: First Reading Agenda Item Summary, September 17, 2019 (w/o attachments) (8320 : SR 112 Data and Communications Fund -1- ORDINANCE NO. 112, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE DATA AND COMMUNCIATIONS FUND FOR IMPLEMENTATION OF ELECTRONIC PLAN REVIEW WHEREAS, the Community Development and Neighborhood Services and Information Technology Departments have collaborated to implement electronic plan review of development applications in order to better serve the citizens of Fort Collins through increased efficiency; and WHEREAS, the completed first phase of the electronic plan review included upgrades to the permit tracking software, Accela, and hardware upgrades; and WHEREAS, the planned second phase will enable improvements to the building permit electronic plan review and retain outside consulting services from TruePoint Solutions to assist with further Accela improvements; and WHEREAS, in order to implement the second phase, an appropriation in the amount of three hundred fifty-thousand dollars from the Data and Communications Fund is necessary; and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins and serves the public purpose of increasing the efficiency of development application review; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, the City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Data and Communications Fund and will not cause the total amount appropriated in the Data and Communications Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from prior year reserves in the Data and Communications Fund the sum of THREE HUNDRED FIFTY THOUSAND DOLLARS ($350,000) for expenditure in the Data and Communications Fund for the implementation of phase 2 of electronic plan review. 1.2 Packet Pg. 17 Attachment: Ordinance No. 112, 2019 (8320 : SR 112 Data and Communications Fund Appropriation) -2- Introduced, considered favorably on first reading, and ordered published this 17th day of September, A.D. 2019, and to be presented for final passage on the 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk 1.2 Packet Pg. 18 Attachment: Ordinance No. 112, 2019 (8320 : SR 112 Data and Communications Fund Appropriation) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Rita Knoll, Chief Deputy City Clerk Carrie Daggett, City Attorney SUBJECT Second Reading of Ordinance No. 113, 2019, Amending the City of Fort Collins District-Precinct Map to Reflect Changes in County Precinct Boundaries and Waiving the Redistricting Requirement of Section 7-87(d) of the City Code. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 17, 2019, aligns City precinct boundaries with County precinct boundaries as required by Section 7-66 of the City Code. None of the divided precincts affect Council district boundaries. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, September 17, 2019 (w/o attachments) (PDF) 2. Ordinance No. 113, 2019 (PDF) 2 Packet Pg. 19 Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY September 17, 2019 City Council STAFF Rita Knoll, Chief Deputy City Clerk Carrie M. Daggett, Legal SUBJECT First Reading of Ordinance No. 113, 2019, Amending the City of Fort Collins District-Precinct Map to Reflect Changes in County Precinct Boundaries and Waiving the Redistricting Requirement of Section 7-87(d) of the City Code. EXECUTIVE SUMMARY The purpose of this item is to align City precinct boundaries with County precinct boundaries as required by Section 7-66 of the City Code. None of the divided precincts affect Council district boundaries. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On March 26, 2019, the Larimer County Board of Commissioners amended County precinct boundaries. State statute mandates the Clerk and Recorder set precinct lines to include no more than 2,000 eligible electors. Population increases in some areas in Larimer County made it necessary for precincts to be divided to comply with State statute. Four precincts that include municipal voters were divided. None of the divided precincts affect Council district boundaries. It is important for the City precinct boundaries to match the County precinct boundaries. The County does not, and will not, track municipal precinct boundaries in the voter registration system. Individual voter addresses are tied to County precinct boundaries, thereby making those boundaries the only way to acquire voter data from Larimer County and the statewide voter registration system. The splitting of precincts triggers a renumbering of City precincts. Since land has been annexed since adoption of the last District-Precinct map, those annexations will also affect the renumbering. Numbers are automatically assigned in the GIS system using a sequential numbering tool. Council District Boundaries Section 7-87(d) of the City Code, added in January 2017, requires the City Clerk to review population deviation between districts when the need to adjust precinct boundaries arises. When this provision was added, it was not expected that the County would adjust precinct boundaries so frequently (twice since January 2017). Because the Council completed a lengthy process of evaluating, amending and approving a new map to balance Council district boundaries in June 2016, and no new census data upon which to base updates to the boundaries is available, completing an additional review and amendment of district boundaries does not appear to be in the best interest of the citizens of Fort Collins. In addition, a redistricting study has been funded in 2020 to examine our current method and other options available to redistrict in a manner that better survives population growth. ATTACHMENT 1 COPY 2.1 Packet Pg. 20 Attachment: First Reading Agenda Item Summary, September 17, 2019 (w/o attachments) (8321 : SR 113 Amending District-Precinct Map) Agenda Item 6 Item # 6 Page 2 The proposed ordinance includes language that waives the application and operation of Section 7-87(d) of the City Code at this time. CITY FINANCIAL IMPACTS The additional precincts created by the division of existing precinct will have minimal financial impact. BOARD / COMMISSION RECOMMENDATION The Council Election Code Committee recommends adoption of the Ordinance. Minutes reflecting the Committee’s discussion are attached. (Attachment 3) PUBLIC OUTREACH Public outreach was not conducted because the City Code requires that City precincts correspond with County precinct boundaries. ATTACHMENTS 1. District-Precinct Map showing County precinct splits (PDF) 2. Proposed District-Precinct Map (PDF) 3. Election Code Committee minutes, September 6, 2019 (draft) (PDF) COPY 2.1 Packet Pg. 21 Attachment: First Reading Agenda Item Summary, September 17, 2019 (w/o attachments) (8321 : SR 113 Amending District-Precinct Map) -1- ORDINANCE NO. 113, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CITY OF FORT COLLINS DISTRICT-PRECINCT MAP TO REFLECT CHANGES IN COUNTY PRECINCT BOUNDARIES AND WAIVING THE REDISTRICTING REQUIREMENT OF SECTION 7-87(d) OF THE CITY CODE WHEREAS, by Ordinance No. 017, 2018, Council adopted an amended District-Precinct Map (the “Map”) currently in use as provided in Section 7-68 of the City Code; and WHEREAS, the Map includes election precinct boundaries established pursuant to Section 7-66 of the City Code, which provides that, insofar as practicable, City precinct boundaries must correspond with the boundaries of the election precincts established by Larimer County (the “County”); and WHEREAS, in March 2019, the County adjusted its precinct boundaries, thereby causing inconsistencies between County precinct and City precinct boundaries; and WHEREAS, in accordance with Code Section 7-66, the Council has determined that it is in the best interest of the citizens of Fort Collins to amend the previously adopted Map to correspond City precinct boundaries with the County precinct boundaries, as shown on the Amended District-Precinct Map, dated August 20, 2019 (the “Amended Map”), which is on file in the office of the City Clerk and which is incorporated herein by this reference; and WHEREAS, because the Council completed a lengthy process of evaluating, amending and approving the Map to balance Council District boundaries in June 2016, and no new census data upon which to base updates to the Council District boundaries is available, completing an additional review and amendment of District boundaries otherwise required at this time under Section 7-87(d) would not be in the best interest of the citizens of Fort Collins; and WHEREAS, funds for a redistricting study have been budgeted in 2020; and WHEREAS, staff has recommended that the Council waive the otherwise applicable requirement in Code Section 7-87(d) that the Council review and update Council District boundaries as otherwise triggered by the precinct boundary changes; and WHEREAS, the Council desires to avoid excessive changes to the Council District boundaries in light of the foregoing. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City of Fort Collins District-Precinct Map, adopted by Ordinance No. 017, 2018, and effective February 16, 2018, is hereby amended by adjusting election precinct 2.2 Packet Pg. 22 Attachment: Ordinance No. 113, 2019 (8321 : SR 113 Amending District-Precinct Map) -2- boundaries to correspond with County precinct boundaries as shown on the Amended Map, and by renumbering precincts as may be necessary to incorporate property annexed into the City. Section 3. That the Council hereby waives the application and operation of Section 7- 87(d) of the City Code in connection with this adjustment of precinct boundaries. Introduced, considered favorably on first reading, and ordered published this 17th day of September, A.D. 2019, and to be presented for final passage on the 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk 2.2 Packet Pg. 23 Attachment: Ordinance No. 113, 2019 (8321 : SR 113 Amending District-Precinct Map) Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Spencer Smith, Civil Engineer II Brad Yatabe, Legal SUBJECT Second Reading of Ordinance No. 114, 2019, Vacating Portions of Rights-of-Way Dedicated on the Waterfield Third Filing Plat. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 17, 2019, vacates various rights-of-way dedicated on the Waterfield Third Filing plat that are no longer necessary or desirable to retain for roadway purposes. The rights-of-way vacation includes various public road rights-of-way within the Waterfield development. The property is being sold to a new developer who is proposing a revised project layout. The existing on-site road rights-of-way need to be vacated prior to recording the new plat. The vacation will not impact any existing rights-of-way of adjacent public streets (North Timberline Road, East Vine Drive, East Suniga Road, Merganser Drive (south of Suniga Road), Turnberry Road or Conifer Street). The property is currently proposed to be replatted as Waterfield Fourth Filing. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary September 17, 2019 (w/o attachments) (PDF) 2. Ordinance No. 114, 2019 (PDF) 3 Packet Pg. 24 Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY September 17, 2019 City Council STAFF Spencer Smith, Civil Engineer II Brad Yatabe, Legal SUBJECT First Reading of Ordinance No. 114, 2019, Vacating Portions of Rights-of-Way Dedicated on the Waterfield Third Filing Plat. EXECUTIVE SUMMARY The purpose of this item is to vacate various rights-of-way dedicated on the Waterfield Third Filing plat that are no longer necessary or desirable to retain for roadway purposes. The rights-of-way vacation includes various public road rights-of-way within the Waterfield development. The property is being sold to a new developer who is proposing a revised project layout. The existing on-site road rights-of-way need to be vacated prior to recording the new plat. The vacation will not impact any existing rights-of-way of adjacent public streets (North Timberline Road, East Vine Drive, East Suniga Road, Merganser Drive (south of Suniga Road), Turnberry Road or Conifer Street). The property is currently proposed to be replatted as Waterfield Fourth Filing. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On August 7, 2014, the Waterfield Third Filing plat was recorded, which included rights-of-way for Ouzel Drive, Aleutian Drive, Muscovy Drive, Shearwater Drive, Cape Teal Drive, Merganser Drive, Mandarin Drive, Rosybill Drive, Goslyn Drive, Garganey Drive and Black Scoter Drive. Since approval of the plat, the property owner has decided to sell the property to Thrive Homebuilders. The City is currently processing a Final Development Plan for the Waterfield property (Waterfield Fourth Filing) proposed by Thrive Homebuilders. Thrive Homebuilders is proposing a revised street and lot layout from what was previously approved and dedicated with Waterfield Third Filing. The existing internal road right-of-way needs to be vacated in order for the proposed Waterfield Fourth Filing plat to be approved and recorded. The Waterfield Fourth Filing Amended Project Development Plan (PDP180009) was approved through a Type 1 Administrative Hearing held on January 10, 2019. PUBLIC OUTREACH An email requesting input was sent to utility providers, potentially impacted City departments and property owners. No objection to the proposed vacation was made by any of the parties notified. ATTACHMENTS 1. Location map (PDF) ATTACHMENT 1 COPY 3.1 Packet Pg. 25 Attachment: First Reading Agenda Item Summary September 17, 2019 (w/o attachments) (8322 : SR 114 Waterfield Third Filing - ROW Vacation) -1- ORDINANCE NO. 114, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS VACATING PORTIONS OF RIGHTS-OF-WAY DEDICATED ON THE WATERFIELD THIRD FILING PLAT WHEREAS, the Waterfield Third Filing subdivision plat included dedication to the public of rights-of-way for Ouzel Drive, Aleutian Drive, Muscovy Drive, Shearwater Drive, Cape Teal Drive, Merganser Drive (north of Suniga Road), Mandarin Drive, Rosybill Drive, Goslyn Drive, Garganey Drive and Black Scoter Drive (collectively the “Rights-of-Way”); and WHEREAS, Thrive Homebuilders (acting on behalf of the property owner, Parker Land Investments, LLC) filed an application with the City Engineer in accordance with City Code Section 23-115 requesting that the City vacate the Rights-of-Way to facilitate a change in the development plan and filing of a new subdivision plat to be known as “Waterfield Fourth Filing”; and WHEREAS, the Rights-of-Way are no longer necessary or desirable to retain for street purposes; and WHEREAS, pertinent landowners, City agencies, and private utility companies have been contacted and reported no objection to the proposed vacation; and WHEREAS, in accordance with City Code Section 23-115, the City Engineer has recommended to the Planning Development and Transportation Director that the Rights-of-Way be vacated and the Director recommends to Council that the request for vacation be approved; and WHEREAS, the right of the residents of the City of Fort Collins will not be prejudiced or injured by the vacation of said street rights-of-way. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the Rights-of-Way, more particularly described on Exhibit "A" attached hereto and incorporated herein by this reference, are hereby vacated, abated and abolished, provided, however, that: (1) this vacation shall not take effect until this Ordinance is recorded with the Larimer County Clerk and Recorder; (2) this Ordinance shall be recorded concurrently with the subdivision plat for Waterfield Fourth Filing; and 3.2 Packet Pg. 26 Attachment: Ordinance No. 114, 2019 (8322 : SR 114 Waterfield Third Filing - ROW Vacation) -2- (3) if this Ordinance is not so recorded by January 10, 2022, then this Ordinance shall become null and void and of no force and effect. Introduced, considered favorably on first reading, and ordered published this 17th day of September, A.D. 2019, and to be presented for final passage on the 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk 3.2 Packet Pg. 27 Attachment: Ordinance No. 114, 2019 (8322 : SR 114 Waterfield Third Filing - ROW Vacation) 3.2 Packet Pg. 28 Attachment: Ordinance No. 114, 2019 (8322 : SR 114 Waterfield Third Filing - ROW Vacation) 3.2 Packet Pg. 29 Attachment: Ordinance No. 114, 2019 (8322 : SR 114 Waterfield Third Filing - ROW Vacation) Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF SeonAh Kendall, Economic Health Manager Shannon Hein, Economic Health Business Specialist John Duval, Legal SUBJECT First Reading of Ordinance No. 120, 2019, Appropriating Prior Year Reserves, Unanticipated Revenue and Authorizing Transfer of Funds for the Small Business Revolving Loan Fund Program. EXECUTIVE SUMMARY The purpose of this item is to authorize the transfer of funds from the Keep Fort Collins Great Fund to the General Fund and appropriate therein and to appropriate reserves and current year revenue from Platte River Power Authority (PRPA) Economic Development Program funds in the General Fund to create the City of Fort Collins Revolving Loan Fund for small businesses and startup companies operating in Fort Collins. The City will use the funds to support access to capital for small businesses in Fort Collins, which have historically not had access to traditional financial capital markets (“under banked” or “non-bankable”) The demographic focus of this program will be low-income, minority, veteran, and women-owned small businesses. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION A revolving loan fund (RLF) is a gap financing tool used for the development and expansion of small businesses and startup companies. This Ordinance will support the first step in the development of the City’s RLF that over time will become an “evergreen” source of capital for underserved and disadvantaged borrowers in the community. “Evergreen” is the term used to refer to a self-replenishing pool of money through interest and principal payments from previous loans to be used for new loans as budgeted and appropriated in future years. Businesses with 1-100 employees make up 98% of all firms in Fort Collins. These businesses employ 47% of the workforce and provide 40% of the total wages in our community. Demonstrated need: • Data from the small business needs assessment deployed in 2018 demonstrated the need and interest for capital resources from women-owned businesses, specifically women-owned businesses in the revenue band of $100,000 - $499,000. • A report by Minority Business Development Agency <http://www.mbda.gov/sites/default /files/DisparitiesinCapitalAccessReport.pdf>, found that, “Among firms with gross receipts under $500,000, loan denial rates for minority firms were about three times higher, at 42 percent, compared to those of non-minority-owned firms, 16 percent.” 4 Packet Pg. 30 Agenda Item 4 Item # 4 Page 2 • The City’s Economic Health Office (EHO) has identified access to capital as a barrier to the small business community within the Economic Health Strategic Goal, B.4, Increase Capital to Support Startup Companies and Entrepreneurs. As such, EHO believes a revolving loan fund can support in meeting Strategic Objective B.4. Goals The goals of the RLF include: A. Encouraging business starts, strengthening and/or expansion of businesses through self-employment. This in turn facilitates job creation as a means of economic self-sufficiency for low-and moderate-income individuals. B. Helping bridge the financial gap for small businesses which might eventually qualify for bank financing and preparing the small business owner for traditional bank relationships. C. Foster diversity in the business community by encouraging business ownership among traditionally underserved minorities, women, and the disabled. D. Promote entrepreneurship and business innovation as a means of harnessing the creative potential of small businesses and investing in the economic success of the community. Contributions to this RLF comes from two sources: • Platte River Power Authority (PRPA) support of economic development efforts (2017, 2018, 2019 and beyond) • 2019 City of Fort Collins Cluster Funding (one-time contribution) Since 1982, Platte River has granted funds annually to support economic development efforts. Prior to 2017, these contributions received by the City of Fort Collins were directed toward Rocky Mountain Innosphere (Innosphere). In August 2017, the City requested PRPA to remit the funds directly to our organization in order to support the development of a small business lending program. These funds were received in 2017 and 2018 and are in the City’s General Fund reserve available for appropriation. Funds to be appropriated are as follows: Source Fund Amount 2017 PRPA Contribution General Fund $21,878 2018 PRPA Contribution General Fund 21,916 2019 PRPA Contribution General Fund 36,436 City of Fort Collins Cluster Contribution KFCG (transfer to General Fund) 98,500 Total RLF Appropriation and Transfer $178,730 Summer 2019, the City issued Request for Proposal (RFP) #8963 seeking a qualified, licensed and accredited capital vendor to manage and administer the revolving loan fund on the City’s behalf (Attachment 1). Term loans would be available to eligible small businesses for up to $50,000 for the following purposes: • Working capital • Equipment • Inventory • Business purchase 4 Packet Pg. 31 Agenda Item 4 Item # 4 Page 3 Oversight A representative from the selected vendor will meet with City of Fort Collins staff at least semi-annually to review the program, lending data, and to provide updates. Staff will provide updates to City Council annually. City Manager Recommendations The City Manager is recommending the supplemental appropriations in this Ordinance. He has determined that these appropriations, together with all other previous appropriations for this fiscal year, will not exceed the City’s current estimate of actual and anticipated revenues for this fiscal year. The City Manager is also recommending the transfer in this Ordinance of the $98,500 in the Keep Fort Collins Fund to the General Fund. He has determined that these transferred funds, which were previously appropriated this fiscal year for expenditure in the City’s Cluster Program to support small business, will continue to be used for the same purpose in the RLF. CITY FINANCIAL IMPACTS Total PRPA contribution of $80,230 was received and earmarked for this program in 2017, 2018, and 2019. Additional PRPA contributions from 2020 and beyond may also be used to expand this program. The remaining $98,500 is from the strategic redeployment of 2019 appropriated cluster funds to support small businesses as the Economic Health Office re-evaluates the City’s cluster program. The City intends to work with a vendor who can leverage these dollars up to ten times the initial investment, creating a larger loan pool for small businesses and creating a true evergreen fund in Fort Collins. ATTACHMENTS 1. Request for Proposal Revolving Loan Fund (PDF) 4 Packet Pg. 32 RFP 8963 Revolving Loan Fund Page 1 of 13 REQUEST FOR PROPOSAL #8963 REVOLVING LOAN FUND The City of Fort Collins is requesting proposals from qualified Vendors to manage a Revolving Loan Fund for businesses. As part of the City’s commitment to Sustainable Purchasing, proposals submission via email is preferred. Proposals shall be submitted in a single Microsoft Word or PDF file under 20MB and e-mailed to: purchasing@fcgov.com. If electing to submit a hard copy proposal we require one (1) hard copy and one (1) electronic copy on a jump drive to be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals must be received before 3:00 p.m. (our clock) on July 11, 2019 and referenced as Proposal No. 8963. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Please note, additional time is required for bids mailed to the PO Box to be received at the Purchasing Office. The City encourages all Disadvantaged Business Enterprises (DBEs) to submit proposals in response to all requests for proposals. No individual or business will be discriminated against on the grounds of race, color, sex, or national origin. It is the City’s policy to create a level playing field on which DBEs can compete fairly and to ensure nondiscrimination in the award and administration of all contracts. All questions should be submitted, in writing via email, to Gerry Paul, Purchasing Director at gspaul@fcgov.com, with a copy to Project Manager, Shannon Hein, at shein@fcgov.com, no later than 5:00 PM MST (our clock) on June 27, 2019. Please format your e-mail to include: RFP 8963 Revolving Loan Fund in the subject line. Questions received after this deadline may not be answered. Responses to all questions submitted before the deadline will be addressed in an addendum and posted on the Rocky Mountain E-Purchasing System webpage. Rocky Mountain E-Purchasing System hosted by Bidnet A copy of the RFP may be obtained at http://www.bidnetdirect.com/colorado/city-of-fort-collins. This RFP has been posted utilizing the following Commodity Code(s): 94625 Banking Services 94656 Investment Management Services 94660 Loan Administration Financial Services Purchasing Division 215 N. Mason St. 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970.221.6707 fcgov.com/purchasing ATTACHMENT 1 4.1 Packet Pg. 33 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 2 of 13 Public Viewing Copy: The City is a governmental entity subject to the Colorado Open Records Act, C.R.S. §§ 24-72-200.1 et seq. (“CORA”). Any proposals submitted hereunder are subject to public disclosure by the City pursuant to CORA and City ordinances. Vendors may submit one (1) additional complete proposal clearly marked “FOR PUBLIC VIEWING.” In this version of the proposal, the Vendor may redact text and/or data that it deems confidential or proprietary pursuant to CORA. Such statement does not necessarily exempt such documentation from public disclosure if required by CORA, by order of a court of appropriate jurisdiction, or other applicable law. Generally, under CORA trade secrets, confidential commercial and financial data information is not required to be disclosed by the City. Proposals may not be marked “Confidential” or ‘Proprietary’ in their entirety. All provisions of any contract resulting from this request for proposal will be public information. New Vendors: The City requires new Vendors receiving awards from the City to fill out and submit an IRS form W-9 and to register for Direct Deposit (Electronic) payment. If needed, the W-9 form and the Vendor Direct Deposit Authorization Form can be found on the City’s Purchasing website at www.fcgov.com/purchasing under Vendor Reference Documents. Please do not submit with your proposal. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision-making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Collusive or Sham Proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. Utilization of Award by Other Agencies: The City of Fort Collins reserves the right to allow other state and local governmental agencies, political subdivisions, and/or school districts to utilize the resulting award under all terms and conditions specified and upon agreement by all parties. Usage by any other entity shall not have a negative impact on the City of Fort Collins in the current term or in any future terms. The selected Vendor shall be expected to sign the City’s standard Agreement prior to commencing Services (see sample attached to this Proposal). Sincerely, Gerry Paul Purchasing Director 4.1 Packet Pg. 34 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 3 of 13 I. BACKGROUND & OBJECTIVE / OVERVIEW A. Objective The City of Fort Collins is requesting proposals from qualified vendors who are licensed and accredited capital providers to manage and administer the City of Fort Collins revolving loan fund for small businesses and startups located in Fort Collins1. B. Background A revolving loan fund is a gap financing tool used for the development and expansion of small businesses and startup companies. It self-replenishes its pool of money through interest and principal payments from previous loans to issue new ones. Businesses with 1-100 employees make up 98% of all firms in Fort Collins. These businesses employ 47% of the workforce and provide 40% of the total wages in our community Demonstrated need: • The City’s Economic Health Office (EHO) has identified access to capital as a barrier to the small business community through Economic Health Strategic Objective, B.4, Increase Capital to Support Startup Companies and Entrepreneurs. As such, EHO believes a revolving loan fund can support in meeting Strategic Objective B.4. • Data from the small business needs assessment deployed in 2018 demonstrated the need and interest for capital resources from women-owned businesses, specifically women-owned businesses in the revenue band of $100,000 - $499,000. • A report by Minority Business Development Agency, found that, “Among firms with gross receipts under $500,000, loan denial rates for minority firms were about three times higher, at 42 percent, compared to those of non-minority-owned firms, 16 percent.” The City views this RFP as the first step in the development of a loan fund that will, over time, become an “evergreen” source of capital for underserved and disadvantaged borrowers in our community. Goals: The goals of the revolving loan fund include: A. Encourage business starts, strengthening’s and/or expansions through self-employment and facilitating job creation as a means of economic self-sufficiency for low-and moderate-income individuals. B. Help bridge the financing gap for small businesses which might eventually qualify for bank financing and prepare them for traditional bank relationships. C. Foster diversity in the business community by encouraging business ownership among traditionally underserved minorities, women, and the disabled. 1 For the purposes of this RFP, a business is defined as one that has obtained a sales tax license in the City of Fort Collins. This also includes non-profits. 4.1 Packet Pg. 35 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 4 of 13 D. Promote entrepreneurship and business innovation as a means of harnessing the creative potential of small businesses and investing in the economic success of the community. E. Leverage the selected vendor partnership to significantly grow the initial seed money provided by the City of Fort Collins. Definition of Key Terms: • Revolving Loan Fund - A financing tool used for the start, strengthening or expansion of small businesses and startup companies, often used for businesses that are not yet able to qualify for conventional bank financing. • Small business – for the purpose of this request for proposal and the revolving loan fund, a small business is defined as having 100 employees or less and annual gross revenues of $500,000 or less. • Business start, strengthening, or expansion o Start - new business created within the prior 12 months; o Strengthening - business revenues increased by 10% or more from the prior year o Expansion - one or more non-family, full-time employees added. II. SCOPE OF PROPOSAL A. Scope of Work The selected vendor will receive approximately $164,000 of seed capital for a revolving loan fund from the City of Fort Collins. The City expects the selected vendor to provide strategies to grow the fund by several multiples (at least 2x) of lending capital, grow the overall available lending pool through matching funds, and at least an equal match from the selected vendor. The revolving loan program will be entirely administered by the selected vendor. It is the City’s expectation the awarded vendor will be responsible for any losses from non- performing loans in this revolving loan fund. The City is looking for a vendor partner that can provide opportunities for additional sources of lending capital, collaboration, education, consulting, and understands our desire to engage and provide business support to underserved entrepreneurs. All loans will be co-branded between the vendor and City of Fort Collins. Timeline: The revolving loan program is expected to launch in quarter three of 2019. Eligibility Criteria: • All eligible borrowers of the revolving loan fund must have their primary business operations in the City of Fort Collins, possess a City of Fort Collins sales tax license, and all applicable and legally required City permits, licenses, and insurance for their specific enterprise. • Eligible borrowers must be in good standing with the sales tax and utilities departments. Businesses with outstanding balances with the City of Fort Collins of any kind will not be considered. 4.1 Packet Pg. 36 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 5 of 13 • Nonprofits are defined as a business and can apply if in good standing in all areas listed above. • Other points of criteria will be determined by the City of Fort Collins and the vendor. As a public entity, the City intends to require eligibility criterium that prohibits participation in the program by certain businesses engaging in selling or providing products or services that are known to be injurious to the public’s health, safety or welfare. Other Loan Parameters: Term loans should be made available to eligible entrepreneurs and businesses for up to $50,000, up to 10 years, and for any of the following purposes: • Working capital • Equipment • Inventory • Business purchase Rates and origination fees vary and will depend on the amount of the loans, loan term and other screening factors. Loan products and borrowing parameters may be adjusted by the City of Fort Collins and selected vendor in order to align with the size and growth of the overall revolving loan fund and changing market needs over time. Oversight: A representative from the selected vendor will meet with City of Fort Collins staff at least semi-annually to review the program, lending data, and to provide updates. City of Fort Collins staff will support marketing efforts as appropriate. Period of Award: The revolving loan fund contract will be subject to annual renewal with an initial term of up to five (5) one (1) year periods. The vendor shall be solely responsible for servicing all loans for the term of such loans in accordance with the terms and conditions of the contract irrespective of the agreement term. B. Deliverables/Milestones Initial lending goals: • 5 loans made in 2019. This can include loans for the purpose of business starts, strengthening’s, or expansions • 15 additional loans made in 2020. This can include loans for the purpose of business starts, strengthening’s, or expansions. Estimated milestones: • Contract execution – August 2019 (estimate) o Upon contract execution, the City of Fort Collins and selected vendor will establish an advisory panel. The advisory panel will not make credit decisions. Responsibilities of the panelists may include attending routine meetings to review reports, monitor progress, identify needs and gaps of the community, bridge relationships with bankers, be a community champion to promote the program to their network, and assure equity and inclusion among borrowers. 4.1 Packet Pg. 37 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 6 of 13 • Program funded by City of Fort Collins – within 45 days of contract execution • Marketing campaign launches (including announcement at the Business Appreciation Breakfast on September 26, 2019) within 60 days of contract execution • First quarterly report submitted – February 2020 C. Key Areas of Responsibility The vendor will be responsible for the following: • Create and manage the revolving loan fund • Screen loan applicants in accordance with the criteria established by the City, vendor, and advisory panel • Administer loan disbursements • Manage loan payments from the borrower • Meet with Economic Health Staff to review quarterly reports • Appoint one representative to serve on the advisory panel • Instrumental in securing additional funds from banks through outreach and existing relationships • Marketing the program to the Fort Collins community • Assume credit risk and responsibility for loan losses D. Minimum Qualifications • The selected vendor must be licensed to offer small business loans in the State of Colorado and have experience in loaning and servicing funds, defining specific parameters of the loan fund, and designing underwriting guidelines. • Have a local presence to provide accessible counseling, support, and engagement. • Ability and experience working with traditionally underserved and non-English speaking entrepreneurs is desirable, but not required. • Capacity to provide education, consulting, and technical assistance to eligible borrowers is also preferred. E. Anticipated Schedule The following represents the City’s target schedule for the RFP. The City reserves the right to amend the target schedule at any time. • RFP issuance: June 14, 2019 • Question deadline: 5:00 PM MST on June 27, 2019 • Proposal due date: 3:00 MST (our clock) on July 11, 2019 • Interviews (tentative): Week of July 22nd • Award of Contract (tentative): August 2019 F. Budget The budget for this project includes initial seed money of an estimated $164,000 plus expected contributions of $20,000 annually by the City of Fort Collins. Vendors are invited to submit proposals with the tasks prioritized to aid the City in working together with the 4.1 Packet Pg. 38 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 7 of 13 selected firm to identify and implement core tasks within the budget available for this project. Vendors may also wish to include budget forecasting for additional contributions they may be able to secure from established partnerships. G. Interviews In addition to submitting a written proposal, the top-rated Vendors may be interviewed by the RFP assessment team and asked to participate in an oral presentation to provide an overview of the company, approach to the project and to address questions. The evaluation criteria for the oral interviews will be the same as the criteria for the written evaluations and is included in Section IV. H. Subcontractors Vendors will be responsible for identifying any subcontractors in their proposal. Please note that the City will contract solely with the awarded Vendor; therefore subcontractors will be the responsibility of the Vendor. I. Proposal Format Please limit the total length of your proposal to a maximum of twenty-five (25) double sided or fifty (50) single sided 8 ½ x 11” pages (excluding cover pages, table of contents, dividers and Vendor Statement form). Font shall be a minimum of 10 Arial and margins are limited to no less than .5” for sides and top/bottom. Extended page sizes, such as 11” x 17”, count as a single page. Please, no embedded documents. Proposals that do not conform to these requirements may be rejected. J. Financial Statement Vendors are to submit the most recent financial statement (audited preferred) including balance sheet and income statement, as well as a statement of cash flows. The financial information shall be submitted in a separate file marked Confidential. The financial information will be considered confidential commercial and financial data pursuant to the Colorado Open Records Act (C.R.S.24-72-201 et. seq.). K. Laws and Regulations The Vendor agrees to comply fully with all applicable local, State of Colorado and Federal laws and regulations and municipal ordinances. L. Invoicing and Payment Invoices should be emailed monthly to invoices@fcgov.com with a copy to the Project Manager. The cost of the work completed shall be paid to the Vendor each month following the submittal of a correct invoice by the Vendor indicating the project name, Purchase Order number, task description, hours worked, personnel/work type category, hourly rate for each employee/work type category, date of the work performed specific to the task, percentage of that work that has been completed by task, 3rd party supporting documentation with the same detail and a brief progress report. Payments will be made using the prices listed on the agreed-to Price Schedule. In the event a service is requested which is not listed on the Price Schedule, the Vendor and the City will negotiate an appropriate unit price for the service prior to Consultant initiating such work. 4.1 Packet Pg. 39 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 8 of 13 The City pays invoices on Net 30 terms. III. PROPOSAL SUBMITTAL For this section, Vendors are required to provide detailed written responses to the following items in the order outlined below. The responses shall be considered technical offers of what Vendors propose to provide and shall be incorporated in the contract award as deemed appropriate by the City. A proposal that does not include all the information required may be deemed non-responsive and subject to rejection. Responses must include all the items in the order listed below. It is suggested that the Vendors include each of the City’s questions with their response immediately following the question. The City of Fort Collins shall not reimburse any firm for costs incurred in the preparation and presentation of their proposal. A. Cover Letter / Executive Summary The Executive Summary should highlight the content of the proposal and features of the program offered, including a general description of the program and any unique aspects or benefits provided by your firm. Indicate your availability to participate in the interviews/demonstrations on the proposed dates as stated in the Schedule section. B. Vendor Information 1. Describe the Vendor’s business and background 2. Number of years in the business 3. Details about ownership 4. An overview of services offered and qualifications 5. Size of the firm 6. Location(s) of offices. If multiple, please identify which will be the primary for our account. 7. Primary contact information for the company including contact name(s) and title(s), mailing address(s), phone number(s), and email address(s). Complete Section V, Vendor Statement. C. Scope of Proposal 1. Provide a detailed narrative of the services proposed if awarded the contract per the scope above. The narrative should include any options that may be beneficial for the City to consider. 2. Describe how the project would be managed and who would have primary responsibility for its timely and professional oversight of the program. 3. Identify what portion of work, if any, may be subcontracted. D. Firm Capability Provide relevant information regarding previous experience related to this or similar Projects, to include the following: 4.1 Packet Pg. 40 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 9 of 13 1. Provide an Organization Chart/Proposed Project Team: An organization chart containing the names of all key personnel and sub consultants with titles and their specific task assignment for this Agreement shall be provided in this section. 2. A list of qualifications for your firm and qualifications and experience of the specific staff members proposed to perform the consulting services described above. 3. Provide a minimum of three similar projects with public agencies in the last 5 years that have involved the staff proposed to work on this project. Include the owner’s name, title of project, beginning price, ending price, contact name, email and phone number, sub-consultants on the team and a brief description of the work and any change orders. 4. Provide examples of at least two projects where you’ve worked with your sub- consultants. List the sub-consultant firm(s) for this Agreement, their area(s) of expertise, and include all other applicable information herein requested for each sub- consultant. Identify what portion of work, if any, may be sub-contracted. 5. References (current contact name, current telephone number and email address) from at least three similar projects with similar requirements that have been completed within the past five (5) years and that have involved the staff proposed to work on this project. Provide a description of the work performed. The Consultant authorizes City to verify any and all information contained in the Consultant’s submittal from references contained herein and hereby releases all those concerned providing information as a reference from any liability in connection with any information they give. E. Assigned Personnel 1. List of Project Personnel: This list should include the identification of the contact person with primary responsibility for this Agreement, the personnel proposed for this Agreement, and any supervisory personnel, including partners and/or sub consultants, and their individual areas of responsibility. 2. A resume for each professional and technical person assigned to the Agreement, including partners and/or sub consultants, shall be submitted. Please limit resumes to one page. 3. Some functions of this project may require the use of sub-consultants. If you intend to utilize sub-consultants you must list each and provide resumes for their key personnel. F. Sustainability/TBL Methodology In concise terms (no more than two pages), please describe how your organization strives to be sustainable. Address how your firm incorporates Triple Bottom Line (TBL) into the workplace. See Section IV: Review and Assessment for additional information. If possible, please highlight areas of opportunity in the project where sustainability could be applied and/or improved. 4.1 Packet Pg. 41 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 10 of 13 G. Cost In your response to this proposal, please provide the following: 1. Program Expenses. Include an itemized list of all reimbursable expenses required to initiate, launch, market and manage the program for the term of the loans. Detail expense items proposed to be reimbursed by the City and those that will be either rolled into the loan or directly reimbursable by the business as part of the loan application process. 2. Interest Rates. Provide an overview of the methodology that will be used to establish the interest rates including the formula and index that will be utilized. H. Additional Information Provide any information that distinguishes Vendor from its competition and any additional information applicable to this RFP that might be valuable in assessing Vendor’s proposal. Explain any concerns Vendor may have in maintaining objectivity in recommending the best solution. All potential conflicts of interest must be disclosed. Exceptions to the Scope of Services shall be documented. IV. REVIEW AND ASSESSMENT CRITERIA A. Proposal and Interview Criteria Vendors will be evaluated on the following criteria. These criteria will be the basis for review and assessment of the written proposals and optional interview session. At the discretion of the City, interviews of the top-rated Vendors may be conducted. The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5 being an outstanding rating. See Next Page for the Assessment Criteria 4.1 Packet Pg. 42 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 11 of 13 WEIGHTING FACTOR QUALIFICATION STANDARD 2.0 Scope of Proposal Does the proposal address all elements of the RFP? Does the proposal show an understanding of the project objectives, methodology to be used and results/outcomes required by the project? Are there any exceptions to the requirements? 2.0 Firm Capability Does the firm have the resources, financial strength, capacity and support capabilities required to be a successfully partner to the City? Has the firm successfully participated in similar programs? 2.0 Assigned Personnel Do the persons who will be working on the project have the necessary skills and qualifications? Are sufficient people of the requisite skills and qualifications assigned to the project? 1.0 Sustainability/TBL Methodology Does the firm demonstrate a commitment to Sustainability and incorporate Triple Bottom Line methodology in both their Scope of Work for the project, and their day-to-day business operating processes and procedures? 3.0 Value Is the methodology for setting the prevailing interest rates competitive and consistent with industry standards? Are the proposed fees competitive? Has the firm committed to match the City’s funds? Does the firm have a strong financial network and have they provided compelling evidence of additional potential sources for loan capital? Definitions Sustainable Purchasing is a process for selecting products or services that have a lesser or reduced negative effect on human health and the environment when compared with competing products or services that serve the same purpose. This process is also known as “Environmentally Preferable Purchasing” (EPP), or “Green Purchasing”. The Triple Bottom Line (TBL) is an accounting framework that incorporates three dimensions of performance: economic, or financial; environmental, and social. The generally accepted definition for TBL is that it “captures the essence of sustainability by measuring the impact of an organization’s activities on the world…including both its profitability and shareholders values and its social, human, and environmental capital.” 4.1 Packet Pg. 43 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 12 of 13 B. Reference Evaluation Criteria Prior to award, the Project Manager will check references using the following criteria. Negative responses from references may impact the award determination. CRITERIA STANDARD QUESTIONS Overall Performance Would you hire this Vendor again? Did they show the skills required by this project? Timetable Was the original Scope of Work completed within the specified time? Were interim deadlines met in a timely manner? Completeness Was the Vendor responsive to client needs; did the Vendor anticipate problems? Were problems solved quickly and effectively? Budget Was the original Scope of Work completed within the project budget? Job Knowledge If a study, did it meet the Scope of Work? If Vendor administered a construction contract, was the project functional upon completion and did it operate properly? Were problems corrected quickly and effectively? 4.1 Packet Pg. 44 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) RFP 8963 Revolving Loan Fund Page 13 of 13 V. VENDOR STATEMENT Vendor hereby acknowledges receipt of the City of Fort Collins Request for Proposal and acknowledges that it has read and agrees to be fully bound by all of the terms, conditions and other provisions set forth in the RFP. Additionally, Vendor hereby makes the following representations to City: a. All of the statements and representations made in this proposal are true to the best of the Vendor’s knowledge and belief. b. Vendor commits that it is able to meet the terms provided in this proposal. c. This proposal is a firm and binding offer, for a period of 90 days from the date hereof. d. Vendor further agrees that the method of award is acceptable. e. Vendor also agrees to complete the proposed Agreement with the City of Fort Collins within 30 days of notice of award. If contract is not completed and signed within 30 days, City reserves the right to cancel and award to the next highest rated firm. f. Vendor acknowledge receipt of addenda. Firm Name: Physical Address: Remit to Address: Phone: Name of Authorized Agent of Firm: Signature of Authorized Agent: Primary Contact for Project: Title: Email Address: Phone: Cell Phone: NOTE: VENDOR STATEMENT IS TO BE SIGNED & RETURNED WITH YOUR PROPOSAL. 4.1 Packet Pg. 45 Attachment: Request for Proposal Revolving Loan Fund (8304 : Small Business Revolving Loan Fund Appropriation) -1- ORDINANCE NO. 120, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES, UNANTICIPATED REVENUE AND AUTHORIZING TRANSFER OF FUNDS FOR THE SMALL BUSINESS REVOLVING LOAN FUND PROGRAM WHEREAS, the purpose of this Ordinance is to appropriate funds to be used to establish a revolving loan fund program to provide a source of capital for underserved and disadvantaged small businesses and start-up companies in Fort Collins that have historically not had access to financial capital markets, such as those owned by women and minorities (the “RLF Program”); and WHEREAS, the RLF Program is intended to provide an “evergreen” source of funding, meaning it will be a self-replenishing fund to be annually appropriated from the principal and interest payments received from earlier loans to be used to fund new loans; and WHEREAS, the RLF Program is consistent with and will further Goal B.4 in the City’s Economic Health Strategic Plan adopted by City Council in Resolution 2015-059 (“Goal B.4”); and WHEREAS, Goal B.4 calls for increased capital to support start-up companies and entrepreneurs by supporting the development of new and enhanced capital access tools, like the RLF Program; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation in combination with all previous appropriations for the fiscal year does not exceed the current estimate of the actual and anticipated revenues to be received by the City during the fiscal year and such appropriations may include funds available for expenditure from reserves accumulated in prior years, notwithstanding that such reserves have not previously been appropriated; and WHEREAS, the City Manager has recommended the supplemental appropriations described herein and determined that these appropriations are available and previously unappropriated from the General Fund and will not cause the total amount appropriated in the General Fund for this fiscal year to exceed the current estimate of actual and anticipated revenues to be received in the General Fund during this fiscal year; and WHEREAS, Article V, Section 10(b) of the City Charter authorizes the City Council during any fiscal year, upon recommendation of the City Manager, to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project, provided that at least one of the following criteria is satisfied: (i) the purpose for which the transferred funds are to be expended remains unchanged, (ii) the purpose for which the funds were initially appropriated no longer exists, or (iii) the Packet Pg. 46 -2- proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance; and WHEREAS, the City Manager has recommended the transfer of funds from the Keep Fort Collins Fund to the General Fund as described herein and determined that the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, the RLF Program and the appropriations and fund transfer described herein to establish it will benefit the public’s health, safety and welfare and will serve the public purposes of furthering Goal B.4, improving the community’s economic health, and making capital available to underserved and disadvantaged small businesses and start-up companies in Fort Collins. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from prior year reserves in the General Fund the sum of FORTY-THREE THOUSAND SEVEN HUNDRED NINETY-FOUR DOLLARS ($43,794) for expenditure in the RLF Program. Section 3. That there is hereby appropriated from anticipated revenue budgeted in the General Fund for this fiscal year, but not previously appropriated in the General Fund, the sum of TWENTY-TWO THOUSAND DOLLARS ($22,000) for expenditure in the RLF Program. Section 4. That there is hereby appropriated from unanticipated revenue in the General Fund the sum of FOURTEEN THOUSAND FOUR HUNDRED THIRTY-SIX DOLLARS ($14,436) for expenditure in the RLF Program. Section 5. That the unexpended appropriated amount of NINETY-EIGHT THOUSAND FIVE HUNDRED DOLLARS ($98,500) in the Keep Fort Collins Great Fund is hereby transferred to the General Fund and appropriated therein for expenditure in the RLF Program. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2019, and to be presented for final passage on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 47 -3- Passed and adopted on final reading on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 48 Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer Lawrence Pollack, Budget Director John Duval, Legal SUBJECT First Reading of Ordinance No. 115, 2019, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts of Funds or Projects. EXECUTIVE SUMMARY The purpose of this Annual Adjustment Ordinance is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2019 annual budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions, donations and grants that have been paid to City departments to offset specific expenses. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION This Ordinance appropriates as supplemental appropriations unanticipated revenue and prior year reserves in various City funds and authorizes the transfer of appropriated amounts between funds and/or projects. The City Charter permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue sources, such as grants and reimbursements. The City Charter also permits the City Council to provide, by ordinance, for payment of any expense from prior year reserves. Additionally, it authorizes the City Council to transfer any unexpended appropriated amounts from one fund to another upon recommendation of the City Manager, provided that (i) the purpose for which the transferred funds are to be expended remains unchanged, (ii) the purpose for which they were initially appropriated no longer exists, or (iii) the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance (Transfer Criteria). If these appropriations are not approved, the City will have to reduce expenditures even though revenue and reimbursements have been received to cover those expenditures. The City Manager recommends all the supplemental appropriations and transfers in the Ordinance. The City Manager has also determined that the proposed supplemental appropriations are available and previously unappropriated in the funds designated in Section 2 of the Ordinance and that each appropriation will not cause the total amount appropriated in each named fund to exceed the current estimate of actual and anticipated revenues to be received in each such fund during the fiscal year. The City Manager has further determined that all transfers of funds in the Ordinance satisfy one or more of the Transfer Criteria. The table below is a summary of the expenses in each fund that make up the increase in requested 5 Packet Pg. 49 Agenda Item 5 Item # 5 Page 2 appropriations. Also included are transfers between funds and/or projects which do not increase net appropriations, but per the City Charter, require City Council approval to make the transfer. A table with the specific use of prior year reserves appears at the end of the agenda item summary. Funding Unanticipated Revenue Prior Year Reserves Transfers TOTAL General Fund $4,779,190 $884,527 $5,800 $5,669,517 Capital Projects Fund 190,125 0 249,377 439,502 Cultural Services Fund 70,930 0 40,000 110,930 Equipment Fund 289,165 0 0 289,165 Light & Power Fund 4,533 0 0 4,533 KFCG Fund (PFA) 0 136,419 0 136,419 Self Insurance Fund 0 410,000 410,000 820,000 Transportation Fund 468,163 900,000 0 1,368,163 Transportation CEF Fund 39,261 210,116 0 249,377 Water Fund 70,000 0 0 70,000 Wastewater Fund 10,000 0 0 10,000 Stormwater Fund 10,000 0 0 10,000 GRAND TOTAL $5,931,367 $2,541,062 $705,177 $9,177,606 A. GENERAL FUND 1. Sponsorships - Love the Fort Fund This adjustment is to repurpose $12,500 of money originally set up to support new and creative initiatives focusing on resident engagement around the uniqueness and original attributes of Fort Collins with an external partner. After review of the initial funds that were expended, staff believes the funds are better brought in house to be used for similar purposes, such as the Lateral Labs pop up event that was hosted by the City and the Music District in July 2019. Any expenditures of these funds will be spent on other things that support a uniquely Fort Collins approach to engagement and creativity. FROM: Unanticipated Revenue $12,500 FOR: Community Engagement Activities $12,500 2. Land Bank Operational Expenses This request is intended to cover expenses related to the land bank property maintenance needs for 2019. As expenses vary from year to year, funding is requested annually mid-year to cover these costs. Expenses for 2019 include general maintenance of properties, raw water and sewer expenses, electricity, prairie dog mitigation, and other as applicable. FROM: Prior Year Reserves (Land Bank reserve) $45,693 FOR: Land Bank Expenses $45,693 3. Manufacturing Equipment Use Tax Rebates Finance requests the appropriation of $405,437 to cover the amount due for the 2018 Manufacturing Equipment Use Tax Rebate program as established in Chapter 25, Article II, Division 5, of the City Code. The rebate program was established to encourage investment in new manufacturing equipment by local firms. Vendors have until December 31st of the following year to file for the rebate. This item appropriates the use tax funds to cover the payment of the rebates. 5 Packet Pg. 50 Agenda Item 5 Item # 5 Page 3 FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $405,437 FOR: Manufacturing Use Tax Rebates $405,437 4. Host Compliance - Short-Term Rentals Annual Subscription In response to a steady stream of online platforms that advertise short term rentals (STRs), City staff has had to fund technology that will monitor the occurrence of unlicensed short-term rentals (STR). Host Compliance has developed a proprietary system to scan the internet to find active STR advertisements and match them against licensed agencies, thereby allowing City staff to focus on noncompliant issues by providing the documentation needed to pursue enforcement and to investigate proactively. The cost of this software was not budgeted in CDNS and has been paid consistently by the City for 2 years. FROM: Prior Year Reserves $17,129 FOR: Short-term rentals software license $17,129 5. Historic Structure Assessment (HSA) of the Fort Collins Water Treatment Plant No. 1 at Gateway Park The City has been awarded a $22,835 grant from History Colorado, to be matched by $15,000 of Operations Services funds. This grant will fund professional structural engineering and architectural services to provide a comprehensive assessment of the condition of the Water Treatment buildings and filtration site features. As the facility has been offline since 1987, this HSA is the critical first step towards a solution for the treatment plant that will balance the preservation and ecological needs of this defunct water treatment plant with a functional use. FROM: Unanticipated Revenue (grant) $22,835 FROM: Previously Appropriated Funds (Non-grant business unit) $15,000 FOR: Historic Structure Assessment (Grant business unit) $37,835 6. Juvenile Diversion Grant 2019-20 These grant funds support Restorative Justice Services in providing alternatives to the justice system for youth who commit crimes in our community. Due to changes in state legislation, only half the grant award was awarded this year (July 1-December 31, 2019.) Changes in the state process are why the funds are being appropriated through the annual adjustment ordinance rather than the normal appropriation process. The other half will be awarded in January 2020. FROM: Unanticipated Revenue (grant) $33,809 FOR: Alternative sentencing for youth $33,809 7. College Downtown Survey The City has been awarded a $25,000 grant from History Colorado to be matched by $15,000 of City funds, to survey and document 50 buildings along College Avenue. This survey project furthers Council's direction for proactive survey of Fort Collins' older building stock to guide development and is a requirement for Fort Collins to retain its historic preservation certification through the Federal Certified Local Government Program. The matching funds were previously appropriated in the Keep Fort Collins Great (KFCG) Fund through the 2019-2020 Budgeting for Outcomes (BFO) process for anticipated grants such as this. FROM: Unanticipated Revenue (grant) $25,000 FOR: Historic survey $25,000 5 Packet Pg. 51 Agenda Item 5 Item # 5 Page 4 8. Harmony Gateway Illustration Project This request is administrative in nature; staff is requesting that the budget that was originally carried forward in the General Improvement District (GID) fund be transferred to the correct business unit. The original budget was in the Downtown General Improvement District (GID #1) and should have been in the General Fund. No new spending will occur as a result of this change. FROM: Unanticipated Revenue (GID #1) $5,800 FOR: Harmony Gateway Illustration Project $5,800 9. Emergency Preparedness and Security (previously the Office of Emergency Management) FEMA Grant This is an administrative change that does not increase net appropriations. A portion of the budget for the 2019-20 Emergency Preparedness and Security (EPS - previously the Office of Emergency Management) needs to be recorded in a Grant business unit per City Charter. FROM: Previously Appropriated Funds (Non-grant business unit) $130,000 FOR: Emergency Preparedness and Security (Grant business unit) $130,000 10. Forestry tree donations and miscellaneous revenue This item appropriates unanticipated revenue from Forestry tree donations and miscellaneous revenue (this includes the Christmas tree recycling program and fees collected to replace damaged trees). FROM: Unanticipated Revenue (donations & miscellaneous revenue) $45,000 FOR: Forestry work & tree plantings $45,000 11. Fort Collins Police Services (FCPS) has received revenue from various sources and is also requesting the use of reserves, to be appropriated to cover the related expenditures. A listing of these items follows: a. $5,631 - Police Battle Grant 2018-2019 Supplemental-the Beat Auto Theft Through Law Enforcement [BATTLE] Grant is a state funded grant for overtime for officers to reduce auto theft and bring those who steal automobiles to justice. This grant pays for overtime on a reimbursable basis. The original 2018-2019 grant was appropriated in the 2018 Annual Adjustment Ordinance and this request is for additional funds awarded after the first round of awards. b. $9,072 - Police Battle Grant 2019-2020-the Beat Auto Theft Through Law Enforcement [BATTLE] Grant is a state funded grant for overtime for officers to reduce auto theft and bring those who steal automobiles to justice. This grant pays for overtime on a reimbursable basis. c. $33,033 - Black and Gray Market Marijuana Grant 2019 - The Black and Gray Market Marijuana grant was administered by the District Attorney's Office funded through state marijuana sales taxes. This grant is used to pay for overtime and equipment associated with the enforcement of black-market marijuana criminals. d. $5,384 - 2019 Click it or Ticket Grant - In 2019 Police Services was awarded a Click it of Ticket Grant from the Colorado Department of Transportation to pay for officers to work overtime to conduct enforcement activities. e. $31,505 - State of Colorado Peace Officer Standards and Training (COPOST) Grant 2018-2019- COPOST reimburses agencies within Colorado Police training and training equipment on a reimbursement basis. f. $11,000 - High Visibility Impaired Driving Enforcement Grant 2019-2020 - In 2019 Police Services 5 Packet Pg. 52 Agenda Item 5 Item # 5 Page 5 was awarded a High Visibility Impaired Driving Enforcement grant from the Colorado Department of Transportation to pay for overtime for DUI enforcement during specific holiday time periods. g. $128,051 - Sale of Police records and other miscellaneous revenue - FCPS received revenue from the sale of Police reports along with other miscellaneous revenue. h. $307,249 - Police Overtime Reimbursement - Police Services help schedule security and traffic control for large events. Since these events are staffed by officers outside of their normal duties, officers are paid overtime. The organization that requested the officer presence is billed for the costs of the officers' overtime. The different activities include, but not limited to, CSU football games, Tour De Fat, Brew Fest, New West Fest and other events. Additionally, FCPS partners with Larimer County to staff events at The Ranch. Police receives reimbursement from Larimer County for officers’ hours worked at Ranch events. i. $11,030 - Police City Give Donations-Unanticipated philanthropic revenue for the Police Explorer Unit, K9 division and general Police use. j. $2,500 - Shop with a Cop Grant - The program pairs volunteers from regional emergency services with local children whose families are facing severe financial difficulties and limited/no housing. Children selected by the McKinney Foundation (through the Poudre School District), are given gift cards to purchase gifts for their immediate family members. Emergency personnel shop with them, building bonds and providing assistance. k. $20,428 - Movement of Funds Associated with the Northern Colorado Drug Task Force - As a part of the movement of the of the Northern Colorado Drug Task Force (NCDTF) over to Larimer County as a part of them being the fiscal agent, this transfer would account for the remaining amount of State Asset Forfeiture and other funds for which Larimer County will now be the fiscal agent. This includes an ancillary payment to the NCDTF from County court fines and fees of $14,160 previously paid to the City for NCDTF and $6,268 is the remaining NCDTF reserves from asset forfeitures. TOTAL APPROPRIATION FROM: Unanticipated Revenue (2018 BATTLE Grant) $5,631 FROM: Unanticipated Revenue (2019 BATTLE Grant) $9,072 FROM: Unanticipated Revenue (Black & Gray Market MJ Grant) $33,033 FROM: Unanticipated Revenue (2019 Click it or Ticket Grant) $5,384 FROM: Unanticipated Revenue (COPOST Grant 2018-19) $31,505 FROM: Unanticipated Revenue (HVE Grant) $11,000 FROM: Unanticipated Revenue (Miscellaneous) $128,051 FROM: Unanticipated Revenue (Overtime Reimbursement) $307,249 FROM: Unanticipated Revenue (City Give Donations) $11,030 FROM: Unanticipated Revenue (Shop with a Cop Grant) $2,500 FROM: Unanticipated Revenue (County court fines and fees) $14,160 FROM: Prior Year Reserves (Asset forfeitures) $6,268 FOR: 2018 BATTLE Grant $5,631 FOR: 2019 BATTLE Grant $9,072 FOR: Black & Gray Market MJ Grant $33,033 FOR: 2019 Click it or Ticket Grant $5,384 FOR: COPOST Grant 2018-19 $31,505 FOR: 2019 HVE Grant $11,000 FOR: Police Services Operations $128,051 FOR: Police Services Operations $307,249 FOR: Police Services Operations $11,030 FOR: Shop with a Cop Grant $2,500 FOR: Transfer of NCDTF funding to Larimer County $20,428 5 Packet Pg. 53 Agenda Item 5 Item # 5 Page 6 12. Radon Kits Environmental Services sells radon test kits at cost as part of its program to reduce lung-cancer risk from in-home radon exposure. This appropriation would recover kit sales for the purpose of restocking radon test kits. FROM: Unanticipated Revenue (radon kit sales) $3,960 FOR: Radon Test Kits $3,960 13. Radon Grant 2018-19 Addendum City staff was invited to present on local initiatives at the International Radon Symposium in Denver. To cover the costs of travel, stay, and registration, the Colorado Department of Public Health and Environment (CDPHE) increased the purchase order of the radon grant. A 40% match is included from previously appropriated money. FROM: Unanticipated Revenue (grant) $1,328 FROM: Previously Appropriated Funds (Non-grant business unit) $531 FOR: International Radon Symposium (Grant business unit) $1,859 14. Roof Hail Damage Insurance Appropriation These funds are intended to repair roof hail damage on 36 buildings resulting from the June 19, 2018 hailstorm. The City of Fort Collins has received $2,713,458 Insurance proceeds and expects to recover another $1,362,685 in losses. All work is expected to be completed by August 2020. FROM: Unanticipated Revenue (insurance proceeds) $4,076,143 FOR: Roof repair $4,076,143 15. Safety and Risk Management (SRM) Premium and Claims Adjustment (see Item #H1 for additional information) This Annual Adjustment is for the unanticipated increase of insurance premiums caused by 2018 hail damage and increase claim amount realized in 2019. The amount from the General Fund Reserves will be transferred to the Self-Insurance Fund. FROM: Prior Year Reserves $410,000 FOR: Transfer to Self-Insurance Fund for increased insurance costs $410,000 B. CAPITAL PROJECTS FUND 1. Gardens Visitor Center Expansion Unanticipated revenues received as donations for the visitor center expansion. FROM: Unanticipated Revenue (City Give donations) $21,715 FOR: Gardens Visitor Center Expansion $21,715 2. Gardens Visitor Center Expansion transfer to reimburse Gardens on Spring Creek Donations for the Visitor's Center expansion to be transferred to General Fund to reimburse the Gardens on Spring Creek reserve fund in the General Fund for money previously provided from that reserve fund to get the Gardens on Spring Creek project started. These donations flowed through City Give. FROM: Unanticipated Revenue (City Give donations) $30,000 5 Packet Pg. 54 Agenda Item 5 Item # 5 Page 7 FOR: Reimburse Gardens on Spring Creek reserve in the General Fund $30,000 3. Poudre River Reach 4 Study Donation This item appropriates a donation received for the feasibility study/design for the Reach 4 phase of the Poudre River Downtown Master Plan. This item is linked to BFO Offer #32.7 ENHANCEMENT: Poudre River Downtown Master Plan Reach 4 Feasibility Study. FROM: Unanticipated Revenue (City Give donation) $25,000 FOR: Poudre River Downtown Master Plan $25,000 4. Nature in the City Nature in the City gives out small grants for nature related projects. A grant was given to Front Range Community College (FRCC) for a pollinator garden. FRCC returned the remaining unused funds of $1,197, which needs to be appropriated for expenditure. FROM: Unanticipated Revenue (return of unused funds) $1,197 FOR: Future use $1,197 5. College and Trilby Intersection Improvements 6520 South College Avenue-Vintage Marketplace. Approved minor amendment for dedication of right of way and public sidewalk improvements requested of applicant. Capital Projects (CP) has improvements scheduled at nearby intersection of College/Trilby and will be completing the project in 2021. As project has not been designed and to avoid having the developer make improvements that may need to be changed after project design, a payment in lieu of construction was requested from the applicant and will be applied as a funding source to the project. FROM: Unanticipated Revenue (payment in lieu of construction) $38,163 FOR: Public sidewalk improvements $38,163 6. Prospect Road and 1-25 Paradigm Properties, LLC is one of the property owners at the I-25 Prospect interchange. As part of the overall project, property owners who benefit from the enhanced interchange are contributing right- of-way with a total value of $500,000 to the overall project. This $32,500 is the amount Colorado Department of Transportation paid Paradigm Properties for its right-of-way and is required to be paid to the City for the right-of-way credit it has granted Paradigm Properties. These funds will be used by the City for the project. FROM: Unanticipated Revenue (right of way contribution) $32,500 FOR: I-25 and Prospect interchange improvements $32,500 7. Vine and Timberline Intersection Improvements With new development the City can request that a developer build enhancements or pay the City to construct them; this is termed a payment-in-lieu (PIL) of construction. This request appropriates a PIL collected during the year to the Vine and Timberline Intersection Project; the project outcome will signalize the intersection and remove the current four way stop. FROM: Unanticipated Revenue (payment in lieu of construction) $38,950 FOR: Intersection improvements $38,950 8. CCIP Pedestrian Sidewalk-ADA 5 Packet Pg. 55 Agenda Item 5 Item # 5 Page 8 Engineering staff had requested a developer, by letter, make concrete repairs in accordance with an acceptance walk-through on a recently developed property. The developer did not respond to numerous requests; therefore, staff initiated a request to the financial company for issuance to the City the remaining funds on their letter of credit so that the City could complete the necessary repairs. This is being bundled with Sidewalk CCIP as this is the group who will execute the repairs and the sidewalk is being brought up to current standards by the development. FROM: Unanticipated Revenue (insurance payment) $2,600 FOR: Sidewalk repair $2,600 9. Payments in Lieu of Construction (see item #J1 for additional information) With new development the City can request a developer to build enhancements or pay the City to construct them; this is termed a Payment-in-lieu (PIL) of construction. This request appropriates PILs collected during the year to various projects across the City. $210,116 to the Lemay and Vine Intersection, $1,300 to the College and Trilby Intersection and $37,961 to the North Mason Street Design. These funds will be transferred to the Capital Projects Fund in order to complete the projects. FROM: Transfer from Transportation Capital Expansion Fees $249,377 FOR: Lemay and Vine Intersection $210,116 FOR: College and Trilby Intersection $1,300 FOR: North Mason Street Design $37,961 10. Art In Public Places - Poudre Whitewater Park (see item #D1 for additional information) Transfer funding from Parks for Art in Public Places for additional artwork at Poudre Whitewater Park. The $40,000 is matching funds from Parks per Resolution 2019-080. FROM: Previously Appropriated Funds $40,000 FOR: Transfer to Cultural Services Fund $40,000 C. CULTURAL SERVICES FUND 1. Art in Public Places - Poudre Whitewater Park (see item #B10 for additional information) Transfer funding from Parks for Art in Public Places for additional artwork at Poudre Whitewater Park, $28,000 is from donations and $40,000 is matching funds from Parks per Resolution 2019-080. FROM: Unanticipated Revenue (City Give donations) $28,000 FROM: Transfer from Capital Projects Fund (matching funds) $40,000 FOR: Art in Public Places (artwork & O&M) $68,000 2. Art in Public Places - Pianos About Town Pianos About Town is a collaborative project between the City of Fort Collins Art In Public Places Program, Bohemian Foundation, and the Downtown Development Authority. The project combines art and music for the enjoyment of the community. Pianos are painted from May through October in Old Town Square, where the public can interact with the artists as they work. Pianos are also painted in the winter months, in various public indoor locations. The completed pianos then rotate to various locations throughout Fort Collins, inviting people to admire the artwork and play a tune. FROM: Unanticipated Revenue (City Give donation) $42,930 FOR: Pianos About Town (artwork & O&M) $42,930 5 Packet Pg. 56 Agenda Item 5 Item # 5 Page 9 D. EQUIPMENT FUND 1. State Compressed Natural Gas (CNG) Vehicle and Electric Charging Infrastructure Grants This revenue is from the Alt Fuels Colorado ($262,880) and Charge Ahead ($26,285) grant programs administered by the State Energy Office and the Regional Air Quality Council. Alt Fuels Colorado provides 80% reimbursement on the incremental cost of natural gas vehicles, while Charge Ahead provides infrastructure for vehicle charging stations. FROM: Unanticipated Revenue (grants) $289,165 FOR: Natural Gas Vehicles and Charging stations $289,165 E. LIGHT AND POWER FUND 1. Art in Public Places - Sponsored Transformer Cabinets Transformer Cabinet Mural Project Sponsorship. Donations were received by three entities to have the transformer cabinets in their areas painted through the Art in Public Places (APP) Project to decrease the prevalence of graffiti. Donators: Our Saviour's Lutheran Church $2,234, Observatory Village Master Home Owners Association (HOA) $1,143 and Observatory Village Master HOA $1,156. Operations and Maintenance costs are not applicable on painting projects at this small scale. FROM: Unanticipated Revenue (donations) $4,533 FOR: Transformer Cabinet Mural Project $4,533 F. KEEP FORT COLLINS GREAT FUND (Poudre Fire Authority) 1. KFCG Reserve for Fire Requesting the Keep Fort Collins Great Reserve for Fire to pay for Poudre Fire Authority's share of regional fire command post (a vehicle that is used as the command center during major incidents, fully equipped with communication devices). FROM: Prior Year Reserves (KFCG PFA) $136,419 FOR: Regional fire command post $136,419 G. SELF INSURANCE FUND 1. Safety and Risk Management (SRM) Premium and Claims Adjustment (see Item #A15 for additional information) This Annual Adjustment is for the unanticipated increase of insurance premiums caused by 2018 hail damage and increase claim amount realized in 2019. The amount from the General Fund Reserves will be transferred to the Self-Insurance Fund. FROM: Prior Year Reserves $410,000 FROM: Transfer from General Fund $410,000 FOR: Increase in Insurance costs $820,000 H. TRANSPORTATION FUND 1. Snow and Ice Removal The 2019 snow budget has nearly been consumed. Appropriated budget in BFO is $1.3M and YTD spending is $870K. The salt supply was intentionally depleted in early 2019 so maintenance and repair work could be performed on the salt barn; therefore 6000 tons of salt will be purchased in final months 5 Packet Pg. 57 Agenda Item 5 Item # 5 Page 10 of the year. Additional funding of $900,000 is requested to ensure there is enough budget appropriated to provide snow removal services from September through December 2019. The breakdown of the request: $525,000 for salt and $375,000 for removal service and equipment maintenance. FROM: Prior Year Reserves $900,000 FOR: Snow & Ice removal costs $900,000 2. Streets Work for Others Program The Planning, Development and Transportation Work for Others is a self-supported program for all “Work for Others” activities within Streets. Expenses are tracked and billed out to other City departments, Poudre School District, CSU, CDOT, Larimer County, developers and other public agencies. The original budget of $3.2M was an estimate based on scheduled projects. Additional unanticipated projects were added in 2019. This additional appropriation of $300,000 is requested to cover projects through the end of 2019. Revenue for performing the work will offset the expense (note - expense will not be incurred without offsetting revenue). FROM: Unanticipated Revenue (work to be billed) $300,000 FOR: Work for Others Program $300,000 3. Street Maintenance Program The City took ownership of Saber Cat Drive from Poudre School District (PSD). PSD signed an agreement to contribute $105,000 towards the cost to bring the Saber Cat to the standards in City Code Section 24-98. In addition, Xcel Energy forfeited $8,858 from an escrow account for street repairs related to Xcel's gas line/services improvements on Debra Drive and Rick Drive. The work was performed by Connell Resources on behalf of the City and this revenue will offset a portion of those costs. FROM: Unanticipated Revenue (contributions) $113,858 FOR: Street Maintenance Program $113,858 4. FC Bikes Program FC Bikes received funding from the following sources: People For Bikes Big Jump Network Donation ($40,000); and Open Streets sponsorship, donations and vendor fees ($11,625). Funding from the People for Bikes grant will support bicycle and pedestrian improvements along West Vine Drive and Lancer Drive. Open Streets revenue is used to offset 2019 Open Streets event costs. FROM: Unanticipated Revenue (People for Bikes City Give donation) $40,000 FROM: Unanticipated Revenue (Open Streets sponsorship, vendor fees) $11,625 FOR: Bicycle and Pedestrian improvements W. Vine/Lancer Dr $40,000 FOR: 2019 Open Streets event costs $11,625 5. Safe Routes to School This funding was donated to the Safe Routes to School (SRTS) program by Scheels (an outdoor equipment store) and the FoCo Fondo Fest (an annual recreational cycling event) to encourage more kids to participate in the outdoor activity of bicycling. The funds must be used to support SRTS- sponsored after-school biking clubs and other bicycle education targeted at local K-8 students. FROM: Unanticipated Revenue (City Give donations) $2,680 FOR: Safe Routes to School Program $2,680 5 Packet Pg. 58 Agenda Item 5 Item # 5 Page 11 I. TRANSPORATION CEF FUND 1. Payments in Lieu of Construction (see item #B9 for additional information) With new development the City can request a developer to build enhancements or pay the City to construct them; this is termed a Payment-in-lieu (PIL) of construction. This request appropriates PILs collected during the year to various projects across the City. $210,116 to the Lemay and Vine Intersection, $1,300 to the College and Trilby Intersection and $37,961 to the North Mason Street Design. These funds will be transferred to the Capital Projects Fund in order to complete the projects. FROM: Prior Year Reserves (payment in lieu of construction) $210,116 FROM: Unanticipated revenue (payment in lieu of construction) $39,261 FOR: Transfer to the Capital Projects Fund $249,377 J. WATER FUND 1. Water Efficiency Grant (Colorado Water Conservation Board Water Plan Grant) Fort Collins Utilities customers are facing increasing costs for water and are motivated to explore waterwise landscapes. Also, a warming climate means that the community needs more successful, waterwise, drought-tolerant landscapes. This grant allows Water Conservation staff to provide education around and incentives for commercial-scale waterwise landscape transformation projects (e.g., turf-to-native grass or other low-water-use landscapes). This grant from the Colorado Water Conservation Board will help fund approximately six commercial and HOA landscape conversion projects that will save an estimated 1.5 million gallons. This effort was selected for its value in meeting the goals of the Colorado Water Plan and the projects will serve as case studies for others in Fort Collins and across Colorado. Staff anticipate awarding between $5,000-$15,000 per project. These case studies will increase knowledge about implementation, maintenance, cost, and community acceptance of landscape conversion projects in HOA and commercial settings. This research will support complimentary regional efforts lead by Northern Water and Colorado State University (CSU) Extension. Funding can also provide additional support to customers affected by increases in the Excess Water Use surcharge and compliments the Allotment Management Program (AMP), Ordinance No. 050, 2019. FROM: Unanticipated Revenue (grant) $70,000 FOR: Water Efficiency training $70,000 K. WASTEWATER FUND 1. Supplement to Bacteriological Water Quality Monitoring Study Northern Water Conservancy District has entered into an agreement with the City to participate in the Bacteriological Water Quality Monitoring study and has contributed $20,000 towards the study. This funding will be split evenly between the Wastewater Fund and Stormwater Fund. It will supplement the current study and enable the City to conduct molecular analyses in 2019 to help identify human- related source contributions of E. coli in the Poudre River and its tributaries. The study is primarily funded by 2019-2020 BFO enhancement offer 9.69. FROM: Unanticipated Revenue $10,000 FOR: Bacteriological Water Quality Monitoring study $10,000 5 Packet Pg. 59 Agenda Item 5 Item # 5 Page 12 L. STORMWATER FUND 1. Supplement to Bacteriological Water Quality Monitoring Northern Water Conservancy District has entered into an agreement with the City to participate in the Bacteriological Water Quality Monitoring study and has contributed $20,000 towards the study. This funding will be split evenly between the Wastewater Fund and Stormwater Fund. It will supplement the current study and enable the City to conduct molecular analyses in 2019 to help identify human- related source contributions of E. coli in the Poudre River and its tributaries. The study is primarily funded by 2019-2020 BFO enhancement offer 9.69. FROM: Unanticipated Revenue $10,000 FOR: Bacteriological Water Quality Monitoring study $10,000 CITY FINANCIAL IMPACTS This Ordinance increases total City 2019 appropriations by $9,177,606. Of that amount, this Ordinance increases General Fund 2019 appropriations by $5,669,517 including use of $884,527 in prior year reserves. Funding for the total City appropriations is $5,937,167 from unanticipated revenue, $2,541,062 from prior year reserves and $699,377 from transfers between Funds. The following is a summary of the items requesting prior year reserves: Item # Fund Use Amount A2 General Land Bank Operational Expenses $45,693 A3 General Manufacturing Equipment Use Tax Rebates 405,437 A4 General Host Compliance - Short-Term Rentals Annual Subscription 17,129 A11k General Movement of Funds Associated with the Northern Colorado Drug Task Force 6,268 A15 General SRM Premium and Claims Adjustment 410,000 G1 KFCG KFCG Reserve for Fire 136,419 H1 Self Insurance SRM Premium and Claims Adjustment 410,000 I1 Transportation Snow & Ice Removal 900,000 J1 Transportation CEF Payments in Lieu of Construction 210,116 Total Use of Prior Year Reserves: $2,541,062 ATTACHMENTS 1. PowerPoint Presentation (PDF) 5 Packet Pg. 60 Council Finance Committee – September 16, 2019 (meeting cancelled) 2019 Annual Adjustment Ordinance Lawrence Pollack – Budget Director ATTACHMENT 1 5.1 Packet Pg. 61 Attachment: PowerPoint Presentation (8316 : 2019 Annual Adjustment Ordinance) 2019 Annual Adjustment Ordinance 2 The recommended 2019 Annual Adjustment Ordinance is intended to address: • 2019 unanticipated revenues (e.g. grants) • Appropriation of unassigned reserves to fund unanticipated expenditures associated with approved 2019 appropriations • Should be routine and non-controversial • Items approved by the ordinance need to be spent within fiscal/calendar year 2019 5.1 Packet Pg. 62 Attachment: PowerPoint Presentation (8316 : 2019 Annual Adjustment Ordinance) 3 City-wide Ordinance No. , 2019 increases total City 2019 appropriations by $9,178k • This Ordinance increases General Fund 2019 appropriations by $5,670k including the use of $885k in prior year reserves. Those reserves are primarily for: o $405k for the Manufacturer’s Use Tax Rebate o $410k for transfer to the Self Insurance Fund for increased premiums and claims costs • Funding for the total City appropriation of $9,178k is: o $5,931k from additional revenue o $2,541k from prior year reserves o $705k from transfers between funds 2019 Annual Adjustment Ordinance 5.1 Packet Pg. 63 Attachment: PowerPoint Presentation (8316 : 2019 Annual Adjustment Ordinance) 4 Summary of 2019 Adjustments by Fund Funding (all values in $k) Unanticipated Revenue Prior Year Reserves Transfers TOTAL General Fund $4,779 $885 $6 $5,670 Capital Projects Fund 190 0 249 440 Cultural Services Fund 71 0 40 111 Equipment Fund 289 0 0 289 Light & Power Fund 5005 KFCG Fund (PFA) 0 136 0 136 Self Insurance Fund 0 410 410 820 Transportation Fund 468 900 0 1,368 Transportation CEF Fund 39 210 0 249 Water Fund 70 0 0 70 Wastewater Fund 10 0 0 10 Stormwater Fund 10 0 0 10 GRAND TOTAL $5,931 $2,541 $705 $9,178 5.1 Packet Pg. 64 Attachment: PowerPoint Presentation (8316 : 2019 Annual Adjustment Ordinance) 5 Large Adjustments Item (in $k) General Fund Transportation Fund Other TOTAL Manufacturing Equipment Use Tax Rebate $405.4 $405.4 Hail Damage Insurance Appropriation - Roof 4,076.1 4,076.1 SRM Premium and Claims Adjustment 410.0 410.0 820.0 Snow Removal 900.0 900.0 Sub-Total $4,891.6 $900.0 $410.0 $6,201.6 All Other Recommended Items 777.9 468.2 1,729.9 2,976.0 TOTAL $5,669.5 $1,368.2 $2,139.9 $9,177.6 5.1 Packet Pg. 65 Attachment: PowerPoint Presentation (8316 : 2019 Annual Adjustment Ordinance) -1- ORDINANCE NO. 115, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE AND AUTHORIZING TRANSFERS IN VARIOUS CITY FUNDS WHEREAS, the City has received unanticipated revenue this fiscal year and has prior year reserves available for appropriation; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues to be received for that fiscal year and such appropriations may include funds available for expenditure from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, the City Manager is recommending the supplemental appropriations described herein and has determined that these appropriations are available and previously unappropriated in the funds named within Section 2 of this Ordinance and that each appropriation will not cause the total amount appropriated in each named fund to exceed the current estimate of actual and anticipated revenues to be received in each such fund during this fiscal year; and WHEREAS, Article V, Section 10(b) of the City Charter authorizes the City Council during any fiscal year, upon recommendation of the City Manager, to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project, provided that at least one of the following criteria is satisfied: (i) the purpose for which the transferred funds are to be expended remains unchanged, (ii) the purpose for which the funds were initially appropriated no longer exist, or (iii) the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance (collectively, the “Transfer Criteria”); and WHEREAS, the City Manager has recommended all the transfers described herein and determined that they each satisfy one or more of the Transfer Criteria; and WHEREAS, the City Council finds and determines that the adoption of this Ordinance is necessary for the public’s health, safety and welfare and, therefore, wishes to authorize the expenditures described in this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Packet Pg. 66 -2- Section 2: That there is hereby appropriated from the following funds the amounts of unanticipated revenue and prior year reserves and authorizes transfers set forth below to be expended for the purposes stated below. A. GENERAL FUND 1. FROM: Unanticipated Revenue (return of unused funds) $12,500 TO: Community Engagement Activities $12,500 2. FROM: Prior Year Reserves (Land Bank reserve) $45,693 TO: Land Bank Expenses $45,693 3. FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $405,437 TO: Manufacturing Use Tax Rebates $405,437 4. FROM: Prior Year Reserves $17,129 TO: Short-term rentals software license $17,129 5. FROM: Unanticipated Revenue (grant) $22,835 FROM: Previously Appropriated Funds (Non-grant business unit) $15,000 TO: Historic Structure Assessment (Grant business unit) $37,835 6. FROM: Unanticipated Revenue (grant) $33,809 TO: Alternative sentencing for youth $33,809 7. FROM: Unanticipated Revenue (grant) $25,000 TO: Historic survey $25,000 8. FROM: Unanticipated Revenue (GID #1) $5,800 TO: Harmony Gateway Illustration Project $5,800 9. FROM: Previously Appropriated Funds (Non-grant business unit) $130,000 TO: Emergency Preparedness and Security (Grant business unit) $130,000 10. FROM: Unanticipated Revenue (donations & miscellaneous revenue) $45,000 TO: Forestry work & tree plantings $45,000 11a. FROM: Unanticipated Revenue (grant) $5,631 TO: Police Battle Grant 2018-2019 Supplemental $5,631 11b. FROM: Unanticipated Revenue (grant) $9,072 TO: Police Battle Grant 2019-2020 $9,072 Packet Pg. 67 -3- 11c. FROM: Unanticipated Revenue (grant) $33,033 TO: Black and Gray Market Marijuana Grant 2019 $33,033 11d. FROM: Unanticipated Revenue (grant) $5,384 TO: 2019 Click it or Ticket Grant $5,384 11e. FROM: Unanticipated Revenue (grant) $31,505 TO: State of Colorado Peace Officer Standards and Training (COPOST) Grant 2018-2019 $31,505 11f. FROM: Unanticipated Revenue (grant) $11,000 TO: High Visibility Impaired Driving Enforcement Grant 2019-2020 $11,000 11g. FROM: Unanticipated Revenue (miscellaneous revenue) $128,051 TO: Police Services Operations $128,051 11h. FROM: Unanticipated Revenue (miscellaneous revenue) $307,249 TO: Police Services Operations $307,249 11i. FROM: Unanticipated Revenue (Police City Give Donations) $11,030 TO: Police Services Operations $11,030 11j. FROM: Unanticipated Revenue (grant) $2,500 TO: Shop with a Cop Grant $2,500 11k. FROM: Unanticipated Revenue (Asset Forfeiture) $14,160 FROM: Prior Year Reserves (Northern Colorado Drug Task Force) $6,268 TO: Northern Colorado Drug Task Force $20,428 12. FROM: Unanticipated Revenue (radon kit sales) $3,960 TO: Radon Test Kits $3,960 13. FROM: Unanticipated Revenue (grant) $1,328 FROM: Previously Appropriated Funds (Non-grant business unit) $531 TO: International Radon Symposium (Grant business unit) $1,859 14. FROM: Unanticipated Revenue (insurance proceeds) $4,076,143 TO: Roof repair $4,076,143 15. FROM: Prior Year Reserves $410,000 TO: Transfer to Self-Insurance Fund for increased insurance costs $410,000 B. CAPITAL PROJECTS FUND Packet Pg. 68 -4- 1. FROM: Unanticipated Revenue (City Give donations) $21,715 TO: Gardens Visitor Center Expansion $21,715 2. FROM: Unanticipated Revenue (City Give donations) $30,000 TO: Reimburse Gardens on Spring Creek reserve in the General Fund (transfer to General Fund) $30,000 3. FROM: Unanticipated Revenue (City Give donations) $25,000 TO: Poudre River Downtown Master Plan $25,000 4. FROM: Unanticipated Revenue (return of unused funds) $1,197 TO: Future use by Nature in the City $1,197 5. FROM: Unanticipated Revenue (payment in lieu of construction) $38,163 TO: Public sidewalk improvements $38,163 6. FROM: Unanticipated Revenue (right of way contribution) $32,500 TO: I-25 & Prospect interchange improvements $32,500 7. FROM: Unanticipated Revenue (payment in lieu of construction) $38,950 TO: Vine & Timberline Intersection improvements $38,950 8. FROM: Unanticipated Revenue (insurance payment) $2,600 TO: Sidewalk repair $2,600 9. FROM: Transfer of Payments in Lieu of Construction from Transportation CEF Fund $249,377 TO: Lemay & Vine Intersection $210,116 TO: College & Trilby Intersection $1,300 TO: North Mason Street Design $37,961 10. FROM: Previously Appropriated Funds (Poudre Whitewater Park) $40,000 TO: Transfer to Cultural Services Fund $40,000 C. CULTURAL SERVICES FUND 1. FROM: Unanticipated Revenue (City Give donations) $28,000 FROM: Transfer from Capital Projects Fund (matching funds) $40,000 TO: Art in Public Places (artwork & O&M) $68,000 2. FROM: Unanticipated Revenue (City Give donation) $42,930 TO: Pianos About Town (artwork & O&M) $42,930 D. EQUIPMENT FUND Packet Pg. 69 -5- 1. FROM: Unanticipated Revenue (grants) $289,165 TO: Natural Gas Vehicles & Charging stations $289,165 E. LIGHT & POWER FUND 1. FROM: Unanticipated Revenue (donations) $4,533 TO: Transformer Cabinet Mural Project $4,533 F. KEEP FORT COLLINS GREAT FUND 1. FROM: Prior Year Reserves (KFCG PFA) $136,419 TO: Regional fire command post $136,419 G. SELF INSURANCE FUND 1. FROM: Prior Year Reserves $410,000 FROM: Transfer from General Fund $410,000 TO: Increase in Insurance costs $820,000 H. TRANSPORTATION FUND 1. FROM: Prior Year Reserves $900,000 TO: Snow & Ice removal costs $900,000 2. FROM: Unanticipated Revenue (work to be billed) $300,000 TO: Work for Others Program $300,000 3. FROM: Unanticipated Revenue (contributions) $113,858 TO: Street Maintenance Program $113,858 4. FROM: Unanticipated Revenue (People for Bikes City Give donation) $40,000 FROM: Unanticipated Revenue (Open Streets sponsorship, vendor fees) $11,625 TO: Bicycle & Pedestrian improvements W. Vine/Lancer Dr $40,000 TO: 2019 Open Streets event costs $11,625 5. FROM: Unanticipated Revenue (City Give donations) $2,680 TO: Safe Routes to School Program $2,680 I. TRANSPORTATION CEF FUND 1. FROM: Prior Year Reserves (Payment in Lieu of Construction) $210,116 FROM: Unanticipated revenue (Payment in Lieu of Construction) $39,261 TO: Transfer to the Capital Projects Fund $249,377 Packet Pg. 70 -6- J. WATER FUND 1. FROM: Unanticipated Revenue (grant) $70,000 TO: Water Efficiency training $70,000 K. WASTEWATER FUND 1. FROM: Unanticipated Revenue $10,000 TO: Bacteriological Water Quality Monitoring study $10,000 L. STORMWATER FUND 1. FROM: Unanticipated Revenue $10,000 TO: Bacteriological Water Quality Monitoring study $10,000 Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2019, and to be presented for final passage on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 71 -7- Passed and adopted on final reading on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 72 Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Martina Wilkinson, Assistant City Traffic Engineer Joe Olson, City Traffic Engineer Kendra Boot, Forestry Senior Manager Ingrid Decker, Legal SUBJECT Items Relating to Objects Obscuring Traffic Control Devices. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 117, 2019, Amending the Code of the City of Fort Collins as it Relates to Objects Obscuring Traffic Control Devices. B. First Reading of Ordinance No. 118, 2019, Amending the Fort Collins Traffic Code as it Relates to Objects Obscuring Traffic Control Devices. The purpose of this item is to consider revisions to the Fort Collins City Code and the City Traffic Code as they relate to the responsibilities for pruning private trees, shrubs or other plants that overhang or otherwise encroach on the public right-or-way. The changes will make the requirements in the two Codes consistent and provide a level of flexibility for City staff to immediately address issues of safety in the public right-of-way at its own expense, if needed. STAFF RECOMMENDATION Staff recommends adoption of both Ordinances on First Reading. BACKGROUND / DISCUSSION The Fort Collins City Code and Traffic Code have each historically addressed the importance of the visibility of traffic control devices, including signs and signals. The Codes generally note that trees or shrubs planted on private property with limbs that overhang the public right-of-way and create visibility issues must be pruned. However, differences in the language of the two Codes currently creates ambiguity regarding who is responsible for addressing safety concerns. The Ordinances propose changes in both Codes to make them current and consistent. The general approach has three components: 1. The responsibility for pruning private trees and shrubs rests with the property owner, except that the City will prune as needed to prevent interference with City utility lines. 2. The City may notify an owner that vegetation must be pruned, or after proper notification the City may choose to undertake the pruning at the owner’s expense. 3. In a case where the obstruction is creating an immediate safety concern and/or hazard, the City may remove the obstruction in the public right-of-way without notice at the City’s expense. 6 Packet Pg. 73 Agenda Item 6 Item # 6 Page 2 Summary of the Proposed Changes The following City Code and Traffic Code changes are proposed. The full set of changes are included in the Ordinances. City Code Section 27-57 - Duty of Property Owner to Prune or Remove Trees or Shrubs Current Text: • Requires owners to remove or prune trees or shrubs to ensure safe and convenient use of the public right- of-way. • Notes that the City will prune as related to City utility lines. • Allows City to do the work after notice. Proposed Changes: • Clarifies that vegetation, not just trees and shrubs, must not obscure traffic control devices (in addition to street name signs). • Notes that City responsibility for pruning is only related to utilities (such as electric lines). • Adds a provision that the City may immediately address a right-of-way hazard at its own expense without prior notice to the owner. Traffic Code Section 114 - Removal of Traffic Hazards Current Text: • Requires the property owner to address hazards. • Allows City to address hazards at owner’s expense after notification. Proposed Changes: • Simplifies the description of affected vegetation to be consistent with City Code. • Clarifies how notice can occur, to be consistent with City Code. • Adds a provision that the City may immediately address a right-of-way hazard at its own expense without prior notice to the owner. 6 Packet Pg. 74 -1- ORDINANCE NO. 117, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CODE OF THE CITY OF FORT COLLINS AS IT RELATES TO OBJECTS OBSCURING TRAFFIC CONTROL DEVICES WHEREAS, on February 18, 2003, the City Council adopted Ordinance 016, 2003 adopting and separately codifying the Fort Collins Traffic Code (“Traffic Code”); and WHEREAS, Section 114 of the Traffic Code, regarding removal of traffic hazards, states in part that the City’s Traffic Engineer may require a property owner to prune or remove any tree limb or any shrub, vine, hedge or other plant that obscures any traffic control device; and WHEREAS, it has recently come to the attention of City staff that Section 114 of the Traffic Code may conflict with Section 27-57 of the City Code, last updated in 2006, regarding the duty of property owners to prune or remove trees or shrubs; and WHEREAS, Section 27-57 only requires property owners to trim or remove trees or shrubs that obscure street name signs, and says the City will prune or remove trees or shrubs that interfere with traffic control devices; and WHEREAS, the difference between these two Code sections makes it ambiguous whether responsibility to trim trees, bushes, and other plants that obscure traffic control devices lies with the citizen or with the City; and WHEREAS, it is critically important for the safety of the transportation system that traffic control devices are clearly visible to motorists; and WHEREAS, the City Council finds that the Traffic Engineer should be able to immediately address any object obscuring a traffic control device; and WHEREAS, City staff is recommending amendments to Section 27-57 of the City Code and, by a separate ordinance, Section 114 of the Traffic Code, to make them consistent and give the Traffic Engineer clear authority to remove, at the City’s expense, any object that is obscuring a traffic control device; and WHEREAS, the City Council finds that such amendments are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Packet Pg. 75 -2- Section 2. That Section 27-57 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 27-57. - Duty of property owner to prune or remove trees, or shrubs, or other vegetation. (a) It shall be the duty of the owner of any property within the City to cut, trim, prune or remove as necessary any trees, or shrubs, or other vegetation located upon the property of such owner in order to provide for the safe and convenient use of streets, sidewalks, alleys or other City-owned property in accordance with the following requirements: (1) Shrub Vegetation growth must not encroach upon the plane of a public sidewalk or street. (2) Tree branch growth must be maintained at a height no lower than eight (8) feet over a public sidewalk and not less than fourteen (14) feet over the travel lanes of a street or alley. (3) To ensure the safety of motorists on adjacent streets, sight distance triangles must be maintained to protect visual clearances as required by the Traffic Engineer. (4) Branches, trees, and shrubs and other vegetation must not obscure street name signs or official traffic control devices. (5) Branches or trees that are broken, hanging, decayed or otherwise defective in any way that threatens public property or the safe use thereof must be removed. (b) Nothing in this Division shall be construed as requiring the owner of a private property to trim or remove any trees or shrubs when such trimming or removing is required to prevent interference with City utility lines or City traffic-control devices. It shall be the duty of the City to do any cutting, trimming, pruning or removing of trees or shrubs necessary for the safe use of City utilities or City traffic-control devices and signs, with the exception of street name signs. (c) Should a property owner fail to maintain trees, and shrubs or other vegetation in the manner required by Subsection (a) of this Section, the City Forester may require that such work be done by notice served upon the owner of such property in accordance with § 27-59. Such work must be performed within the time period specified in such notice. (d) If the Traffic Engineer reasonably determines a branch, tree, shrub or other vegetation, or any other object on private property obscures an official traffic control device or traffic or directional sign or view of traffic within a sight distance triangle, or otherwise constitutes a hazard to drivers or pedestrians, the Traffic Engineer may, in his or her reasonable discretion and at the City’s expense, work with the City Forester to immediately remove such obstruction within the public right-of-way without notice to the property owner. Packet Pg. 76 -3- Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2019, and to be presented for final passage on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 77 -1- ORDINANCE NO. 118, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE FORT COLLINS TRAFFIC CODE AS IT RELATES TO OBJECTS OBSCURING TRAFFIC CONTROL DEVICES WHEREAS, on February 18, 2003, the City Council adopted Ordinance 016, 2003 adopting and separately codifying the Fort Collins Traffic Code (“Traffic Code”); and WHEREAS, Section 114 of the Traffic Code, regarding removal of traffic hazards, states in part that the City’s Traffic Engineer may require a property owner to prune or remove any tree limb or any shrub, vine, hedge or other plant that obscures any traffic control device; and WHEREAS, it has recently come to the attention of City staff that Section 114 of the Traffic Code may conflict with Section 27-57 of the City Code, last updated in 2006, regarding the duty of property owners to prune or remove trees or shrubs; and WHEREAS, Section 27-57 only requires property owners to trim or remove trees or shrubs that obscure street name signs, and says the City will prune or remove trees or shrubs that interfere with traffic control devices; and WHEREAS, the difference between these two Code sections makes it ambiguous whether responsibility to trim trees, bushes and other plants that obscure traffic control devices lies with the citizen or with the City; and WHEREAS, it is critically important for the safety of the transportation system that traffic control devices are clearly visible to motorists; and WHEREAS, the City Council finds that the Traffic Engineer should be able to immediately address any object obscuring a traffic control device; and WHEREAS, City staff is recommending amendments to Section 114 of the Traffic Code and, by a separate ordinance, to Section 27-57 of the City Code to make them consistent and give the Traffic Engineer clear authority to remove, at the City’s expense, any object that is obscuring a traffic control device; and WHEREAS, the City Council finds that such amendments are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Packet Pg. 78 -2- Section 2. That Section 114 of the Fort Collins Traffic Code is hereby amended to read as follows: 114. - Removal of traffic hazards. (1) The Traffic Engineer or other local authority may by written notice sent by certified mail require the owner of real property abutting on the right-of-way of any highway, sidewalk or other public way to trim or remove, at the expense of said property owner, any tree limb, or any shrub, vine, hedge or other plant which vegetation that projects beyond the property line of such owner onto or over the public right-of-way and thereby obstructs the view of traffic, obscures any official traffic control device or otherwise constitutes a hazard to drivers or pedestrians. Such notice shall be personally served upon such person or, if not personally served, conspicuously posted upon the property and also deposited in the United States mail, addressed to the owner of record at the address on the assessment roll of the County Assessor, or at such other, more recent, address as may be available to the City. (2) It is the duty of the property owner to remove any dead, overhanging boughs of trees located on the premises of such property owner that endanger life or property on the public right-of-way. (32) In the event that any property owner fails or neglects to trim or remove any such tree limb, or any such shrub, vine, hedge or other plant vegetation within ten (10) days after receipt of written notice from the City to do so, the City may do or cause to be done the necessary work incident thereto, and said property owner shall reimburse the City for the cost of the work performed. (3) Nothing in this provision shall prohibit the City from enforcing Section 27-57(d) of the Code enabling the City, in its discretion and at the City’s expense, to remove anything that obstructs the view of traffic or official traffic control devices, or otherwise constitutes a hazard to drivers or pedestrians, without providing notice to any property owner. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2019, and to be presented for final passage on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 79 -3- Passed and adopted on final reading on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 80 Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Link Mueller, Utilities Special Projects Manager Jason Graham, Water Reclamation/Biosolids Manager Cyril Vidergar, Legal SUBJECT Resolution 2019-094 Approving the Purchase of Two Biogas Powered Generator Sets from Woodward, Inc. as an Exception to the Competitive Purchasing Process. EXECUTIVE SUMMARY The purpose of this item is to approve an exception to the competitive purchasing process for the purchase of two biogas powered combined heat and power (CHP) generator sets for the Drake Water Reclamation Facility (DWRF) in support of the City’s climate action plan (CAP) goals. Woodward has been collaborating with City staff and consultants for several years working in the design of a cost-efficient combined heat and power (CHP) system that can utilize biogas produced at DWRF. Purchasing the CHP generator set through Woodward provides the most economical procurement while allowing Woodward to leverage equipment provided by the company, its vendors, and clients. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The purpose of this agenda item is to request an exception to the competitive purchasing process per Section 8-161(d)(1) b. of the City Code. Purchase of these CHP systems through any other source will result in approximately four times higher costs to the City, based on cost analysis conducted during the design. The City of Fort Collins operates two wastewater treatment facilities: Mulberry Water Reclamation Facility (MWRF) and Drake Water Reclamation Facility (DWRF). One component of wastewater treatment is the stabilization of sludge through anaerobic digestion to produce biosolids. The DWRF stabilizes all wastewater sludge from both the MWRF and DWRF through 4 anaerobic digesters. As treatment occurs, biogas is naturally produced by the microorganisms used in the digestion process. On average, about 50% of the annual volume of biogas produced is beneficially reused for process heat and facility building heat with the remaining 50% wasted by flaring it off. The installation of the Woodward CHP systems and associated equipment would provide the necessary infrastructure to beneficially reuse 100% of the biogas produced under normal operating conditions. Founded in 1870, Woodward Inc, is a locally based international firm that provides control solutions for equipment that produces electricity using conventional and renewable energy sources. In 2016, Woodward met with City staff and a concept was hypothesized where utilizing Woodward’s engine systems expertise and contacts, an economical combined heat and power system could be designed to utilize DWRF’s biogas. In May 2017 this partnership was formalized in an agreement between the City and Woodward where support of Woodward in the design of the City CHP systems, Woodward gains a local facility to highlight and showcase its engine control systems. Woodward, the City, and the City’s consultants and contractors have been 7 Packet Pg. 81 Agenda Item 7 Item # 7 Page 2 successfully collaborating on these systems to the point where the next step is to finalize a purchase agreement and begin fabrication. CITY FINANCIAL IMPACTS Section 8-161 (d)(1) b. of the City Code authorizes the Purchasing Agent to negotiate the purchase of supplies and materials without utilizing a competitive process where the Purchasing Agent determines that although a particular material or service is available from more than one (1) responsible source, a competitive process cannot reasonably be used, or, if used, will result in a substantially higher cost to the City, will otherwise injure the City’s financial interests or will substantially impede the city’s administrative functions or the delivery of services to the public. Purchases under this section that exceed $200,000 require City Council approval. During the preliminary design process prior to involvement with Woodward, the City’s contractor solicited budgetary quotes from industrial generator set suppliers. The following chart summarizes the comparison to Woodward’s current proposal: Supplier CHP system size (kW) Budgetary Cost (Date) Cost per kilowatt Supplier A 400 $798,000 (2016) $1,995 Supplier B 300 $860,000 (2016) $2,866 Woodward 440 (220 x 2) $368,000 (2019) $836 BOARD / COMMISSION RECOMMENDATION On September 19, 2019, the Water Board voted unanimously to recommend adoption of this Resolution. (Attachment 1) ATTACHMENTS 1. Water Board Minutes, September 19, 2019 (Draft) (PDF) 7 Packet Pg. 82 Excerpt from Unapproved DRAFT MINUTES - WATER BOARD REGULAR MEETING September 19, 2019, 5:30 p.m. 222 Laporte Avenue, Colorado River Community Room 09/19/2019 – Excerpt from Unapproved DRAFT MINUTES Page 1 o Competitive Process Exception, Woodward Cogeneration Systems (Attachments available upon request) Special Projects Manager Link Mueller summarized staff’s request for an exception to the competitive purchasing process for the purchase of two biogas- powered combined heat and power (CHP) generator sets for the Drake Water Reclamation Facility (DWRF) in support of the City’s Climate Action Plan (CAP) goals. Woodward has collaborated with City staff and their consultants for several years working in the design of a cost-efficient combined heat and power (CHP) system that can utilize biogas produced at Drake Water Reclamation Facility (DWRF). Purchasing the CHP generator set through Woodward provides the most economical procurement by allowing Woodward to leverage equipment provided by the company, its vendors and clients. Discussion Highlights: Board members commented on and inquired about various related topics including the showcase part of the agreement (reasonable notice to visit site, etc.); details of the generator sets and heat exchangers; and clarification on the reason for exception from competitive process. Board Member Steve Malers moved that the Water Board recommends to City Council approval of the resolution for an exception to the competitive purchase process for the purchase of two biogas-powered cogeneration systems and their associated engineering services from Woodward, Inc. Board Member Phyllis Ortman seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 ATTACHMENT 1 7.1 Packet Pg. 83 Attachment: Water Board Minutes, September 19, 2019 (Draft) (8301 : DWRF Cogen Competitive Purchasing Process Exception) -1- RESOLUTION 2019-094 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE PURCHASE OF TWO BIOGAS POWERED GENERATOR SETS FROM WOODWARD INC. AS AN EXCEPTION TO THE COMPETITIVE PURCHASING PROCESS WHEREAS, Section 8-161(d)(1)(b) of the City Code authorizes the Purchasing Agent to negotiate purchases of supplies and services without utilizing a competitive bidding or proposal process where the Purchasing Agent determines that although there may be more than one source, the competitive process cannot reasonably be used, or if used will result in a substantially higher cost to the City, will otherwise injure the City’s financial interests or will substantially impede the City’s administrative functions or the delivery of services to the public; and WHEREAS, the City operates two wastewater treatment facilities, Mulberry Water Reclamation Facility (MWRF) and Drake Water Reclamation Facility (DWRF), through which municipal wastewater is collected and passed through DWRF, where it is stabilized via equipment including anaerobic digestors to break down and consume organic material; and WHEREAS, anaerobic digestion of wastewater solids occurs with help from natural microorganisms, which produce biogas, about 50% of which is currently beneficially reused at DWRF and the remaining 50% is expired by flaring off; and WHEREAS, in 2016, the Fort Collins Wastewater Utility (“FCU”) began construction and capital improvements at MWRF and DWRF, including studying co-generation systems; and WHEREAS, in 2017, the City and Woodward Inc. entered into an agreement to leverage Woodward’s engine expertise and industry contacts to design an economical combined heat and power project to reuse biogas to offset public electric power demands at DWRF; and WHEREAS, Woodward recently identified a two-generator set custom system design through which it can provide FCU an economical biogas-powered combined heat and power (CHP) system at DWRF which also advances City climate action goals; and WHEREAS, the estimated total cost for the (220kW x 2) 440 kW Woodward CHP system is $368,000, approximately $836/kW of generation capacity, represents a significant cost- saving per kilowatt of power generation, based on budgetary competitive quotes obtained in 2016 for similar self-contained systems at up to four times the cost of Woodward’s design; and WHEREAS, FCU staff has concluded Woodward’s CHP generator set provides the most economical and complete option available, leveraging proprietary equipment from Woodward, its vendors, and clients in a customized utility-scale application that can also serve as a public- private partnership to showcase community co-generation solutions; and WHEREAS, FCU staff has recommended contracting with Woodward to provide a biogas CHP system solution at DWRF, based on the cost-savings and the mutual benefits available through selecting a local vendor; and Packet Pg. 84 -2- WHEREAS, the City’s Purchasing Agent has determined that although there may be more than one source for CHP system solutions, the competitive process, if used, will result in a substantially higher cost to the City based on the availability of the option Woodward is offering, would injure the City’s financial interests by jeopardizing community benefits available through a long-term collaboration with Woodward, and would otherwise substantially impede the City’s administrative functions or delivery of services to the public by delaying the DWRF project; and WHEREAS, on September 19, 2019, the City’s Water Board voted unanimously to recommend City Council approve staff’s recommendation to purchase a CHP system solution through Woodward; and WHEREAS, City Council appropriated $4.7M in prior and current budget cycles for capital improvements at the City wastewater facilities, and $2.95M of which appropriation remains unexpended; and WHEREAS, Section 8-161(d)(3) of the City Code requires prior approval of this purchasing method by the City Council for all procurements which exceed $200,000. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby approves the purchase of a combined heat and power system solution from Woodward Inc., as an exception to the City’s competitive purchasing process requirements, for the reasons set forth herein, and authorizes the Purchasing Agent to negotiate and execute a purchase agreement. Section 3. That the Purchasing Agent may use this approval, as authorized in City Code Section 8-161(d)(4), as the basis for negotiating the additional purchase of services from Woodward Inc. at any time within a period of five (5) years from the date of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 85 Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Mark Kempton, Water Production Manager Eric Potyondy, Legal SUBJECT Resolution 2019-095 Authorizing the City Manager to Execute an Agreement Regarding Use of the Munroe Canal. EXECUTIVE SUMMARY The purpose of this item is to approve execution of an agreement between the City of Fort Collins, through Fort Collins Utilities, and multiple other parties regarding operations of the Munroe Canal that supplies water to Fort Collins Utilities via the Pleasant Valley Pipeline. The agreement mainly outlines roles and responsibilities among these parties that have been vague since pipeline operations started in 2003 and will greatly improve future operations, but also includes reasonable payments to the North Poudre Irrigation Company for its operational efforts. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The City of Fort Collins, through Fort Collins Utilities, along with the East Larimer County, Fort Collins- Loveland and North Weld County Water Districts (“Districts”) and the City of Greeley, finished construction of the Pleasant Valley Pipeline (“PVP”) in 2003. The PVP is one of two pipelines that the City uses to delivers Poudre River water to the City’s water treatment facility. The City’s and Districts’ Poudre River water delivered via the PVP must first go through the Munroe Canal, which is owned by Northern Water and operated by the North Poudre Irrigation Company (NPIC).The Munroe Canal has a capacity of about 250 cubic feet per second (cfs) that was originally built to deliver water to various NPIC shareholders. The Munroe Canal frequently has excess capacity to deliver water to the PVP for the City and Districts, but only during April through October. The PVP was also built to deliver Horsetooth Reservoir water to Greeley’s water treatment plant near the mouth of the Poudre River canyon during November through March. The City and Districts have used the PVP since 2003 via an agreement with Northern Water dated February 28, 2003, which allows the use of up to 93 cfs each for the City and Districts. However, there was not an agreement with NPIC on the operational aspects of delivering that water. Also, NPIC operates the Munroe Canal via an agreement with Northern Water that allows them to seek reimbursement for any increased costs of operating and maintenance of the Munroe Canal caused by the diversion and carriage of water by the City and Districts. 8 Packet Pg. 86 Agenda Item 8 Item # 8 Page 2 The proposed agreement (Exhibit A to Resolution 2019-095) defines terms and conditions of water delivery through the Munroe Canal to the PVP between NPIC, the City and the Districts, and defines reimbursement to NPIC for its operational efforts. The following are key terms and conditions in the proposed agreement: • Term (period) of Agreement: o 5-year term o Automatic renewal of additional 5-years (unless any party wishes to terminate) o Intention to complete long-term agreement following these initial periods • Excess Capacity Defined: o NPIC gets first right to use any/all capacity (~250 cfs) in the Munroe ▪ NPIC rarely uses full capacity, leaving room for City and Districts o Remaining “Excess Capacity” available to City and Districts ▪ Up to 93 cfs each (capacity for each in PVP, which has 186 cfs capacity) ▪ If Excess Capacity is limited, shared equally between City and Districts • Canal Operations: o City and Districts will submit an annual operations plan by March 1 each year o Meetings between all parties will occur before and after each running season • Financial Considerations: o NPIC will deliver water to the City and Districts at no charge during times water was is also being delivered to other NPIC shareholders ▪ NPIC could ask for compensation during these times, but must provide evidence of the need for such compensation o NPIC will charge $2,100 per month ($70 per day) for delivering water to the City and Districts during times they are not delivering to other NPIC shareholders ▪ These costs will be shared by City and Districts ▪ Costs cannot be raised more than 10 percent over prior years fees without providing evidence of the need for such increase CITY FINANCIAL IMPACTS It is estimated under current operations that the payments to NPIC will be about $1,000 per year. This cost could vary each year depending on the City’s operational needs, but likely not exceed more than $3,000 per year. This cost will be paid for out of the City’s Water Treatment Facility annual operating budget, which is approximately $4.5 million per year. BOARD / COMMISSION RECOMMENDATION On September 19, 2019, the Water Board voted unanimously to recommend approval of the subject agreement. (Attachment 1) ATTACHMENTS 1. Water Board Minutes, September 19, 2019 (Draft) (PDF) 8 Packet Pg. 87 Excerpt from Unapproved DRAFT MINUTES - WATER BOARD REGULAR MEETING September 19, 2019, 5:30 p.m. 222 Laporte Avenue, Colorado River Community Room 09/19/2019 – Excerpt from Unapproved DRAFT MINUTES Page 1 Agreement Regarding the Use of the Munroe Canal (Attachments available upon request) Water Resources Manager Donnie Dustin summarized the history of the canal and the proposed agreement between the City of Fort Collins, through Fort Collins Utilities, and multiple other parties regarding operations of the Munroe Canal that supplies water to Utilities via the Pleasant Valley Pipeline (PVP). The agreement outlines roles and responsibilities among these parties that have been vague since PVP operations started in 2003 and will greatly improve future operations, and also includes reasonable payments to the North Poudre Irrigation Company for their operational efforts. Discussion Highlights: Board members requested clarification on a few details of the agreement. Board Member Phyllis Ortman moved that the Water Board recommend City Council adopt the resolution authorizing the City Manager to execute an agreement between the City of Fort Collins, North Poudre Irrigation Company, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District regarding operations of the Munroe Canal Diversion Structure. Board Member Jim Kuiken seconded the motion. Discussion on the Motion: None Vote on the Motion: it passed unanimously, 8-0 ATTACHMENT 1 8.1 Packet Pg. 88 Attachment: Water Board Minutes, September 19, 2019 (Draft) (8277 : Munroe Canal Operating Agreement Approval) -1- RESOLUTION 2018-095 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT REGARDING USE OF THE MUNROE CANAL WHEREAS, the Munroe Canal (also known as the North Poudre Supply Canal) diverts water from the Cache la Poudre River upstream of the canyon mouth and delivers water to, among other locations, the Pleasant Valley Pipeline for delivery to the City’s Water Treatment Facility; and WHEREAS, various other entities also have interests in the Munroe Canal, including: the Northern Colorado Water Conservancy District (“Northern Water”), which owns the Munroe Canal; the North Poudre Irrigation Company (“North Poudre”), which operates and maintains the Munroe Canal pursuant to agreements with Northern Water and uses it to deliver water to shareholders; and the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District (collectively, “Tri-Districts”), which, like the City, use the Munroe Canal and the Pleasant Valley Pipeline to deliver water to their Soldier Canyon Filter Plant; and WHEREAS, the City, North Poudre, and the Tri-Districts (collectively, “Parties”) each run water through the Munroe Canal but have not had an agreement to clarify various operational aspects the Parties’ use of the Munroe Canal; and WHEREAS, clarifying operations of the Munroe Canal will benefit ratepayers of the City’s water utility by, among other reasons, improving the reliability of the Munroe Canal, and reducing the risk of future disagreements and potential water supply disruptions and additional costs; and WHEREAS, staff from the Parties have negotiated an agreement regarding operations of the Munroe Canal, as set for the in draft Agreement attached hereto as Exhibit “A.” NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Manager is hereby authorized to execute an agreement substantially in the form of Exhibit “A”, with such modifications and additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purposes of this Resolution. Packet Pg. 89 -2- Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 90 AGREEMENT BETWEEN THE NORTH POUDRE IRRIGATION COMPANY AND THE CITY OF FORT COLLINS, THE FORT COLLINS – LOVELAND WATER DISTRICT, THE EAST LARIMER COUNTY WATER DISTRICT AND THE NORTH WELD COUNTY WATER DISTRICT REGARDING USE OF THE MUNROE CANAL 1. PARTIES. The parties to this Agreement are the North Poudre Irrigation Company (the “Company”), a Colorado mutual ditch and reservoir company; and the City of Fort Collins, a Colorado municipal corporation with home-rule authority (“Fort Collins”), the Fort Collins – Loveland Water District, the East Larimer County Water District and the North Weld County Water District (each of the three water districts are collectively referred to herein as the “Tri- Districts”), each of which is a political subdivision and a public corporation of the State of Colorado. The Company, Fort Collins and the Tri-Districts are referred to herein collectively as the “Parties”. 2. RECITALS AND PURPOSE. WHEREAS, pursuant to the Company’s 1945 Petition and Order from the Northern Colorado Water Conservancy District (“Northern Water”), the Company has certain rights to use the North Poudre Supply Canal and Diversion Works (the “Munroe Gravity Canal”); WHEREAS, the Company’s rights to use the Munroe Gravity Canal and its obligations to operate and maintain it were further defined in the December 9, 1987 Operating Agreement between the Company and Northern Water; WHEREAS, the United States of America, acting by and through the Bureau of Reclamation, conveyed by Quitclaim Deed dated November 8, 2002 to Northern Water, among other real property, the Munroe Gravity Canal; WHEREAS, the Company’s rights to use and its obligations to operate and maintain the Munroe Gravity Canal were further defined in the February 11, 2005 Amendment to Operating Agreement between the Company and Northern Water; WHEREAS, the Company’s right to use and its obligations to operate and maintain the Munroe Gravity Canal, specifically includes that portion of the Munroe Gravity Canal commencing from the canal’s diversion structure off of the Cache la Poudre River to the turnout structure for the Pleasant Valley Pipeline (“PVP”) as each is depicted on Figure No. 1 hereto (this portion of the Canal including the turn-out structure shall be hereinafter defined as the “PVP Reach”); WHEREAS, Fort Collins entered into a series of agreements with Northern Water, acting by and through the Pleasant Valley Pipeline Water Activity Enterprise, including an interim agreement, dated May 18, 1999, an allotment contract, dated February 28, 2002, an amendment to the allotment contract dated May 30, 2006 and a supplement to the allotment contract dated January 1, 2014; EXHIBIT A a Packet Pg. 91 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 2 WHEREAS, the Tri-Districts, acting collectively through the Soldier Canyon Filter Plant, a political subdivision and public corporation of the State of Colorado, entered into a series of agreements with Northern Water, acting by and through the Pleasant Valley Pipeline Water Activity Enterprise, including an allotment contract, dated February 28, 2003 and an amendment to the allotment contract dated October 2, 2012; WHEREAS, pursuant to their respective allotment contracts with Northern Water, Fort Collins and the Tri-Districts each obtained a perpetual right to utilize up to 93 cfs in the Munroe Gravity Canal and its diversion works to deliver water to the PVP to the extent that the capacity is not necessary for delivery of water for the Company under and pursuant to the rights granted to the Company in its 1945 Petition and Order from Northern Water; WHEREAS, pursuant to their respective allotment contracts with Northern Water, Fort Collins’ and the Tri-Districts’ rights to utilize up to 93 cfs in the Munroe Gravity Canal and its diversion works for delivery to the PVP are co-equal in terms of priority; WHEREAS, the February 11, 2005 Amendment to Operating Agreement between the Company and Northern Water permits the Company to enter into agreements with allottees of capacity in the PVP, like Fort Collins and the Tri-Districts, for reimbursement to the Company of any increased costs of operation and maintenance of the Munroe Canal caused by the diversion and carriage of water for such entities pursuant to their allotment agreements with Northern Water; WHEREAS, Fort Collins and the Tri-Districts each currently own a substantial number (and collectively own more than half) of the Company’s outstanding shares; WHEREAS, notwithstanding the contractual rights to use of capacity in the Munroe Gravity Canal pursuant to their respective allotment contracts with Northern Water, the Company has, from time to time, pursuant to informal agreement(s), allowed Fort Collins and the Tri- Districts to utilize the Munroe Gravity Canal, from the diversion structure on the Cache la Poudre River to the PVP diversion structure to deliver non-share water, as the same is further defined in ¶ 4, below, to their respective water treatment facilities during the Municipal Diversion Season (defined herein to be April 1st – October 31st of each year); WHEREAS, the Company and Fort Collins and the Tri-Districts each desire to share the capacity of the Munroe Gravity Canal available to them under their respective agreements with Northern Water to maximize the canal’s value to each respective entity; WHEREAS, through this Agreement, the Company and Fort Collins and the Tri-Districts agree to collaboratively strive to coordinate their respective water deliveries through the Munroe Gravity Canal so as to minimize the effect on each of the Parties’ rights and on the Company’s operations; WHEREAS, the goal of this Agreement is to develop an operating agreement between the Parties to provide operational certainty to all of the Parties; and a Packet Pg. 92 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 3 WHEREAS, the Company desires to allow Fort Collins and the Tri-Districts to deliver non- share water through the PVP Reach in the Munroe Gravity Canal, in accordance with terms and conditions of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED IN THIS AGREEMENT, THE PARTIES COVENANT AND AGREE TO THE TERMS AND CONDITIONS SET FORTH IN THE FOLLOWING PARAGRAPHS. 3. TERM. The term of this Agreement will be five years from the date of complete execution by the Parties. This Agreement shall automatically renew for a second five (5) year term unless either Fort Collins or the Tri-Districts notify the Company in writing that they choose to terminate the Agreement prior to the first five-year anniversary of the Agreement. The Parties acknowledge and agree that they intend to continue working together in good faith on a long-term extension beyond the initial Term of this Agreement. Any such extension shall be in writing and shall be executed prior to this Agreement’s expiration. 4. FORT COLLINS’ AND THE TRI-DISTRICTS’ WATER AND EXCESS CAPACITY DEFINED. Pursuant to their respective share ownership in the Company, Fort Collins and the Tri- Districts are each entitled to their pro-rata amount of water available pursuant to the Company’s decreed water rights (“share water”). For the purpose of this Agreement, “Fort Collins’ and the Tri-Districts’ water” refers to any water other than share water to which Fort Collins and the Tri-Districts are lawfully entitled, and that may legally be diverted from the Cache La Poudre River at the headgate of the Munroe Gravity Canal. Pursuant to the Company’s Amended Operating Agreement with Northern Water, and pursuant to Fort Collins’ and the Tri-Districts’ Allotment Contracts with Northern Water, both Fort Collins and the Tri-Districts have the perpetual right to utilize reasonable amounts of capacity in the Munroe Canal up to a maximum combined capacity of 186 cfs. For the purposes of this Agreement, “Excess Capacity” is defined to be the capacity existing in the Munroe Canal which may be utilized by the Company to safely deliver Fort Collins’ and the Tri-Districts’ water and which capacity is not required by the Company to deliver water it diverts on behalf of its’ stockholders through the Munroe Gravity Canal under the allocation provision in ¶ 3 of the Company’s Amended Operating Agreement with Northern Water, but not to exceed a maximum combined capacity of 186 cfs as defined in Fort Collins’ and the Tri-Districts’ allotment agreements with Northern Water. Pursuant to this Agreement, the Company will make such determination(s) of the amount of Excess Capacity available at any given moment based upon its ability to safely convey water, its obligations to its stockholders, its contractual obligation to deliver Fort Collins’ and the Tri-Districts’ non-share water separate from their respective Company share water, and other operational considerations. For the purposes of this Agreement, the Parties acknowledge and agree that the current combined total flow capacity in the PVP Reach is approximately 250 cfs. The Parties further acknowledge and agree that, to the extent the Company determines that Excess Capacity exists, each of Fort Collins and the Tri-Districts will be entitled to use the remaining capacity in the Munroe Gravity Canal up to 93 cfs. To the extent that 186 cfs is not available, Fort Collins and the Tri-Districts agree that either one may use what capacity they need and what capacity the Company determines is a Packet Pg. 93 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 4 available, unless the combined need is greater than the available capacity in which case Fort Collins and the Tri-Districts will each be entitled to one-half of the capacity available. Finally, the Parties acknowledge and agree that Fort Collins and the Tri-Districts each have the contractual right, based on their agreements with Northern Water, to have reasonable amounts of their respective non-share water delivered through the PVP Reach, however, such rights may not exceed the limitations of those agreements, meaning that each is limited individually to a maximum instantaneous diversion and delivery rate of 93 cfs of non- share water through the PVP Reach. 5. CAPACITY ALLOCATION/CANAL OPERATION. Fort Collins and the Tri-Districts will coordinate with the Company all diversions of their respective non-share water through the PVP Reach. The primary objective of Fort Collins and the Tri-Districts is to utilize and make deliveries of their respective non-share water through the PVP Reach. Fort Collins and the Tri-Districts acknowledge that the Company may incur additional costs to operate the PVP Reach, and agree to work with the Company so as not to increase the reasonable costs of operation incurred by the Company including for those increased costs the Company incurs for the delivery of excessive water below the PVP. Fort Collins and the Tri-Districts will each provide to the Company a proposed annual operating plan for anticipated non-share water diversions through the PVP Reach no later than March 1 of each year and will meet with Company staff, individually or jointly, to discuss such individual proposed annual operating plans no later than on March 15 of each year, or by/at such other date(s) as the Parties determine are necessary. Additionally, Fort Collins and the Tri-Districts will meet with Company staff, individually or jointly, after the Municipal Diversion Season, but no later than December 15 of each year, or by such other date(s) as the Parties determine are necessary, to discuss the preceding water year’s operations and to review expenses which the Company has incurred in delivering non-share water for Fort Collins and the Tri-Districts through the PVP Reach. The Company agrees that it will provide Fort Collins and the Tri-Districts information detailing future maintenance planned by the Company and, to the extent applicable, by Northern Water, in the PVP Reach. To the extent that planned maintenance by the Company and/or Northern Water will impact the abilities of Fort Collins or the Tri-Districts to deliver their respective non-share water to the PVP during the Municipal Diversion Season, the Company will provide notice of such impact(s) as soon as they are identified. Such notice will be communicated by the most expeditious means possible to the individuals identified in ¶ 10, below, as “Emergency Contacts”. The Parties agree to update any and all modifications to the Emergency Contacts’ information in writing as soon as practical, but in any event, to conform or update the information annually at the Company’s annual stockholder meeting. The Company will take reasonable measures to minimize such impact(s). 6. CONSIDERATION. The diversion and delivery of Fort Collins’ and the Tri-Districts’ non- share water through the PVP Reach will result in additional operational, administrative, and maintenance costs (“Additional Costs”) to the Company that are unrelated to the routine operational, administrative, and maintenance costs related to the Company’s duty to deliver share water to its shareholders (“Routine Costs” are paid from the Company’s operating a Packet Pg. 94 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 5 budget which is funded by assessments from shareholders, including Fort Collins and the Tri-Districts). There are two scenarios under which Additional Costs to the Company may arise: a. The Parties agree that the Company will incur Additional Costs at times during the Municipal Diversion Season when the Company delivers Fort Collins’ and the Tri- Districts’ non-share water through the PVP Reach and it is not concurrently delivering share water to its shareholders (“Non-Share Delivery Periods”). So that Additional Costs during Non-Share Delivery Periods are not borne by the Company’s shareholders, Fort Collins and the Tri-Districts shall pay for the Additional Costs through the assessment of an Additional Fee in the amount of $2,100 per month in the first full year of this Agreement, which Additional Fee shall be pro/rated for the number of days within each month when either the City of Fort Collins or the Tri- Districts are taking delivery of non-share water through the PVP Reach and the Company is not concurrently delivering share water to its shareholders. Based on the Company’s experience gained through operating this Agreement, the Company may increase the Additional Fee in subsequent years to recover costs and prevent adverse impacts to the Company, but in no case will the Company increase the Additional Fee by more than 10% over the prior year’s Additional Fee, nor will the Company decrease the Additional Fee. If the Company desires to increase the Additional Fee by more than 10% over the prior year’s Additional Fee in order to recover costs and prevent adverse impacts to the Company, the Company shall be required to provide evidence to Fort Collins and the Tri-Districts establishing the clear need for such increase for the Company to recover costs and prevent adverse impacts to the Company. b. The Parties agree that the Company may also incur Additional Costs at times during the Municipal Diversion Season when the Company delivers Fort Collins’ and the Tri- Districts’ non-share water through the PVP Reach and it is concurrently delivering share water to its shareholders (“Normal Delivery Periods”). As Fort Collins and the Tri-Districts’ shareholder assessments contribute to the Routine Costs the Company incurs from the delivery of share water to its shareholders during Normal Delivery Periods, any Additional Costs incurred during this time must be directly related to the delivery of the non-share water through the PVP Reach and must be documented by the Company to evidence that they are not part of the Routine Costs. Fort Collins and the Tri-Districts will pay for such documented, reasonable Additional Costs, provided that each of or both Fort Collins and the Tri-Districts have the opportunity to review a detailed summary of such Additional Costs and to dispute any such identified Additional Costs which may in fact be Routine Costs. 7. NORTHERN WATER. The Parties agree that Northern Water will be afforded the timely opportunity to review this Agreement prior to its execution. The Parties acknowledge and agree that review of this Agreement by Northern Water does not bind Northern Water to any provisions or representations in this Agreement. Nothing in this Agreement modifies, amends or otherwise impacts the existing contracts, allotments or agreements between Northern Water and each of the parties either individually or collectively. Any a Packet Pg. 95 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 6 representations made in this Agreement, including its recitals, are solely between the Parties themselves and not Northern Water. 8. ASSIGNMENT. This Agreement will not be assigned or delegated except with the prior written consent of the Parties. 9. PRIOR AGREEMENTS. The terms and conditions of any previous agreements between the Company and Fort Collins or between the Company and the Tri-Districts or between the Company and Fort Collins and the Tri-Districts are not affected or amended by this Agreement. 10. NOTICES/CONTACTS. Any notice required or permitted by this Agreement will be in writing and will be deemed to have been sufficiently given for all purposes if sent by certified or registered mail, postage and fees prepaid, addressed to the party to whom such notice is intended to be given at the address set forth on the signature page below, or at such other address as has been previously furnished in writing to the other party or parties. Such notice will be deemed to have been given when deposited in the U.S. Mail. The parties will, to the extent possible, communicate any modifications in their emergency contact information in writing to the other parties prior to the commencement of each Municipal Diversion Season or as soon as possible once such modification has been made. Emergency Contacts: North Poudre Irrigation Company: Name: Tad Moen Position: General Manager Telephone #: (970) 218-8476 Email: tmoen@npicwater.com Name: Torin Thorsguard Position: Operations Manager Telephone #: (303) 552-8225 Email: tthorsgard@npicwater.com Fort Collins: Position: Plant Director Name: Mark Kempton Telephone #: (970) 698-4988 or (970) 221-6690 ext. 0 Email: mkempton@fcgov.com Tri-Districts: Name: Chris Harris Position: Plant Manager/SCFP Telephone #: (970) 692-1807 (cell) Email: charris@scwtp.org a Packet Pg. 96 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 7 Regular Contacts for All Other Notice Requirements: North Poudre Irrigation Company: Name: Torin Thorsguard Position: Operations Manager Address: P.O. Box 100, Wellington, CO 80549 Telephone #: (303) 552-8225 Email: tthorsgard@npicwater.com Fort Collins: Position: Plant Director Name: Mark Kempton Address: 4316 LaPorte Ave, Fort Collins CO 80521 Telephone #: (970) 221-6692 Email: mkempton@fcgov.com Tri-Districts: Name: Richard Raines Position: Water Resources Manager/SCFP Address: 4424 La Porte Avenue, Fort Collins, CO 80521 Telephone #: (970) 218-2738 (cell) Email: rraines@scwtp.org 11. EXHIBITS. All exhibits referred to in this Agreement are, by this reference, incorporated in this Agreement for all purposes. 12. DELAYS. Any delays in, or failure of, performance by any party of his or its obligations under this Agreement will be excused if such delays or failure are a result of acts of God, fires, floods, strikes, labor disputes, accidents, regulations or orders of civil or military authorities, shortages of labor or materials, or other causes, similar or dissimilar, which are beyond the control of such party. 13. PARAGRAPH CAPTIONS. The captions of the paragraphs are set forth only for convenience and reference, and are not intended in any way to define, limit, or describe the scope or intent of this Agreement. 14. ADDITIONAL DOCUMENTS OR ACTION. The Parties agree to execute any additional documents and to take any additional action necessary to carry out this Agreement. 15. INTEGRATION AND AMENDMENT. This Agreement represents the entire agreement between the Parties and there are no oral or collateral agreements or understandings. This Agreement may be amended only by an instrument in writing signed by the Parties. 16. ALTERNATIVE DISPUTE RESOLUTION. In the event of any dispute or claim arising under or related to this Agreement, including but not limited to the payment of any maintenance and repair amounts by the City of Fort Collins and the Tri-Districts, the Parties a Packet Pg. 97 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 8 will use their best efforts to settle such dispute or claim through good faith negotiations with each other. If such dispute or claim is not settled through negotiations within 30 days after the earliest date on which one party notifies the other party in writing of its desire to attempt to resolve such dispute or claim through negotiations, then the parties agree to attempt in good faith to settle such dispute or claim by mediation conducted under the auspices of a recognized established mediation service within the State of Colorado upon which the Parties can agree. Such mediation will be conducted within 60 days following either party’s written request therefor. If such dispute or claim is not settled through mediation, then any party may initiate a civil action in the District Court for Larimer County. 17. DEFAULT AND/OR TERMINATION. All terms and conditions of this Agreement are considered material. In the event that any party defaults in the performance of any of the covenants or agreements to be kept, done or performed by and under the requirements of this Agreement, the non-defaulting party or parties will give the defaulting party 30 days written notice of such default, and if the defaulting party fails, neglects or refuses for a period of more than 30 days thereafter to make good or perform the default, then the non- defaulting party or parties, without further notice, may file an action for specific performance or damages or both. 18. WAIVER OF BREACH. The waiver by any party to this Agreement of a breach of any term or provision of this Agreement will not operate or be construed as a waiver of any subsequent breach by any party. 19. IMMUNITIES PRESERVED. It is the intention of the Parties that this Agreement will not to be construed as a contractual waiver of any immunities or defenses provided by the Colorado Governmental Immunity Act, Section 24-10-101 and following, Colorado Revised Statutes. 20. NO THIRD PARTY BENEFICIARIES. None of the terms, conditions, or covenants set forth in this Agreement will give or allow any claim, benefit, or right of action by any third person not a party to this Agreement. Any person other than the parties to this Agreement who or which receive services or benefits under this Agreement will be only an incidental beneficiary. 21. BINDING EFFECT. This Agreement will inure to the benefit of, and be binding upon, the Parties, and their respective successors and assigns; provided, however, that nothing contained in this paragraph will be construed to permit the assignment of this Agreement except as otherwise specifically authorized in this Agreement. 22. GOVERNING LAW. This Agreement will be governed by the laws of the State of Colorado. Venue will be in the District Court for Larimer County. 23. COUNTERPARTS. This Agreement may be executed in several counterparts and, as so executed, will constitute one Agreement, binding on all the Parties even though all the Parties have not signed the same counterpart. Any counterpart of this Agreement which has attached to it separate signature pages, which altogether contain the signatures of all the a Packet Pg. 98 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 9 Parties, will be deemed a fully executed instrument for all purposes. 24. SEVERABILITY. If any provision of this Agreement is declared to be invalid, void or unenforceable by a court of competent jurisdiction, such provision will be deemed to be severable, and all other provisions of this Agreement will remain fully enforceable, and this Agreement will be interpreted in all respects as if such provision were omitted. DATED. ____________________, 2019. [THE REST OF THIS PAGE IS LEFT BLANK INTENTIONALLY] a Packet Pg. 99 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 10 IN WITNESS WHEREOF, the Parties have executed this Agreement Regarding Use of the Munroe Canal effective the day and year first written above. North Poudre Irrigation Company, a Colorado mutual ditch and reservoir company _________________________________________ By: ___________________, President Attest: _________________________________________ By: ___________________, Secretary a Packet Pg. 100 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 11 City of Fort Collins, a Colorado municipal corporation with home-rule authority By: ______________________________________ Date: Darin A. Atteberry, City Manager ATTEST: By: ______________________________________ City Clerk Name: ____________________________________ Title: ____________________________________ APPROVED AS TO LEGAL FORM: By: ______________________________________ Eric R. Potyondy, Assistant City Attorney II a Packet Pg. 101 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 12 Fort-Collins – Loveland Water District, a quasi-municipal corporation and a political subdivision of the State of Colorado _________________________________________ By: ___________________, President Attest: _________________________________________ By: ___________________, Secretary North Weld County Water District, a quasi-municipal corporation and a political subdivision of the State of Colorado _________________________________________ By: ___________________, President Attest: _________________________________________ By: ___________________, Secretary East Larimer County Water District, a quasi-municipal corporation and a political subdivision of the State of Colorado _________________________________________ By: ___________________, President Attest: _________________________________________ By: ___________________, Secretary a Packet Pg. 102 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) 14 NC R -2 9C W H i g hw a y 14 W H i g h w a y 1 4 M c M urryRanchRd N Count y Ro a d 2 9 C Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community Cache la Poudre River Munroe Gravity Canal - Underground Portion Munroe Gravity Canal Figure 1 Munroe Gravity Canal Diversion Structure to PVP Turnout Munroe Gravity Canal Diversion PVP Turnout 0 0.25 0.5Miles a Packet Pg. 103 Attachment: Exhibit A (8317 : Munroe Canal Operating Agreement Approval RESO) Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Mark Kempton, Water Production Manager Eric Potyondy, Legal SUBJECT Items Relating to Agreements for Delivery of Horsetooth Reservoir Water During the Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet. EXECUTIVE SUMMARY A. Resolution 2019-096 Authorizing the City Manager to Execute an Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, the North Weld County Water District, and the Northern Colorado Water Conservancy District Acting By and Through the Pleasant Valley Pipeline Water Activity Enterprise Regarding a Supplemental Means to Deliver Horsetooth Reservoir Water to the Fort Collins Water Treatment Facility and Soldier Canyon Water Treatment Plant (Pleasant Valley Pipeline Modifications and Use). B. Resolution 2019-097 Authorizing the City Manager to Execute an Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, the North Weld County Water District, and the City of Greeley Regarding a Supplemental Means to Deliver Horsetooth Reservoir Water to the Fort Collins Water Treatment Facility and Soldier Canyon Water Treatment Plant (Greeley Infrastructure Modifications and Use). C. Resolution 2019-098 Authorizing the City Manager to Execute an Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District Regarding a Supplemental Means to Deliver Horsetooth Reservoir Water to the Fort Collins Water Treatment Facility and Soldier Canyon Water Treatment Plant (Project Work - New Infrastructure - New Property Rights). The purpose of this item is to authorize the City Manager to execute three agreements between combinations of the City of Fort Collins (City), Fort-Collins Loveland, East Larimer County, and North Weld County water districts (the Tri-Districts), the City of Greeley (Greeley), and the Northern Colorado Water Conservancy District (Northern Water) regarding a project to provide a temporary backup water supply pumping system during an October-November 2020 shutdown of the Soldier Canyon Dam Outlet pipeline (Soldier Canyon Outlet) which conveys water from Horsetooth Reservoir to the two drinking water treatment plants serving Fort Collins and surrounding areas. The pumping system is intended as a backup supply system to the primary Cache la Poudre River water supply during the 60-day long planned outage of the Soldier Canyon Outlet. Three separate agreements are needed because each agreement concerns discrete aspects of this project, involving specific infrastructure and set of entities: (A) an agreement between the City, the Tri-Districts, and Northern Water regarding the use of Northern Water’s Pleasant Valley Pipeline; (B) an agreement between the City, the Tri-Districts, and Greeley regarding the use of Greeley’s infrastructure; and (C) an agreement between the City and the Tri-Districts regarding the ownership, design, construction, and operation of new infrastructure. 9 Packet Pg. 104 Agenda Item 9 Item # 9 Page 2 STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Northern Water owns and operates the 54-inch Soldier Canyon Outlet that delivers raw water from Horsetooth Reservoir to the City's Fort Collins Water Treatment Facility and the Tri-Districts’ Soldier Canyon Water Treatment Plant. Northern Water is planning to perform necessary maintenance on the Soldier Canyon Outlet in October and November 2020. This maintenance will require a full shutdown of the Soldier Canyon Outlet for up to 60 days, which would result in both treatment plants relying exclusively on the Poudre River as the water source for the City's and the Tri-Districts’ respective water service areas. The Poudre River has historically been a reliable source of high-quality water. However, it can be susceptible to water quality impairing incidents such as forest fires, vehicle crashes, chemical spills, and other incidents. These incidents may cause the treatment plants to shut off the water intakes from the river. If one or more of these such incidents were to occur during the planned shutdown, the City and the Tri-Districts would be at risk of a drinking water shortage. Pursuant to Resolution 2019-055, the City, the Tri-Districts, and Greeley entered into the Agreement […] Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet. Under this agreement, various potential options were examined to mitigate the potential water supply risk associated with the work on the Soldier Canyon Outlet. Consistent with the results of the study, the City and the Tri-Districts (partnering with Greeley and Northern Water) are now pursuing a project to design and construct a temporary backup emergency pumping station to supply Horsetooth Reservoir water to both treatment plants in the case of a loss of water supply from the Poudre River. This effort will require the implementation of three separate agreements involving the City, the Tri-Districts, the City of Greeley, and Northern Water. A location map and schematic of the pumping system are attached. (Attachment 1 and 2) Under this project, the Horsetooth Reservoir water that would normally be delivered to the City’s and the Tri- Districts’ water treatment plants through the Soldier Canyon Outlet will be diverted and supplied to the two treatment plants in the following manner: 1. Water will be released from Horsetooth Reservoir into the Charles Hansen Supply Canal, which generally carries water from the north end of Horsetooth Reservoir towards the Poudre River. 2. The water will then be released from the Charles Hansen Supply Canal to an existing pipe diversion owned by Greeley. A new connection will be made to Greeley’s pipe that will flow to the new temporary pumping station. 3. Water will then flow from the Greeley pipeline tap into a temporary pumping station to be constructed in early 2020. The temporary pumping station will be owned and operated by the City and the Tri-Districts. 4. Water will then be pumped into the existing Pleasant Valley Pipeline (PVP) through a new connection into the PVP that will transport water to both treatment plants to serve the City’s and the Tri-District’s customers. The design construction, operations and maintenance (O&M) of the pumping system will require the implementation of the following three agreements; A. An agreement between the City and the Tri-Districts regarding the ownership, design, construction, and O&M of the temporary pumping system; B. An agreement between the City, the Tri-Districts, and Greeley regarding the connection to Greeley’s existing 36-inch pipeline; and C. An agreement between the City, the Tri-Districts, and Northern Water regarding the connection to the existing 67-inch Pleasant Valley Pipeline. 9 Packet Pg. 105 Agenda Item 9 Item # 9 Page 3 The City will initially fund and manage the construction of the project. As described in the first agreement referenced above, the Tri-Districts will reimburse the City at appropriate milestones for their portion of the project costs. Portions of the completed project will result in permanent construction and will be owned and operated by the City and the Tri-Districts in case of the need for a future permanent pump station at this location. The pumps associated with the pumping station will be temporary and will be removed from the site at the completion of the shutdown project. CITY FINANCIAL IMPACTS The cost of the project is estimated to be $2.0 million which will be shared between the City and the Tri- Districts. The funds will be requested from Water Fund reserves under a separate appropriation to Council. BOARD / COMMISSION RECOMMENDATION On September 19, 2019, the Water Board voted unanimously to recommend approval of the agreements and the funding appropriation. (Attachment 3) PUBLIC OUTREACH Extensive public outreach will be performed in the months prior to the shutdown with the goal of reducing water demand to historical winter levels. Outreach efforts will potentially include requests and incentives to minimize outdoor watering by October 1, 2020, engage with key customer accounts, and educate City water customers about the potential impacts of the project. The outreach will also serve to inform, share conservation benefits, in addition to working with customers to reduce usage. Outreach will be performed in cooperation with the Tri- Districts where feasible. Additional risk reduction measures such as restricting truck traffic in the Poudre Canyon during the shutdown are being discussed with the Colorado Department of Transportation (CDOT). ATTACHMENTS 1. Horsetooth Shutdown Location Map (PDF) 2. Pump Station Schematic Layout (PDF) 3. Water Board Minutes September 19, 2019 (Draft) (PDF) 9 Packet Pg. 106 Project Location Map Teds Place Noosa Dairy Poudre River/HWY 14 Project Site ATTACHMENT 9.1 1 Packet Pg. 107 Attachment: Horsetooth Shutdown Location Map (8266 : Horsetooth Reservoir Line Shutdown) ATTACHMENT 2 9.2 Attachment: Pump Station Schematic Layout (8266 : Horsetooth Reservoir Line Shutdown) Excerpt from Unapproved DRAFT MINUTES - WATER BOARD REGULAR MEETING September 19, 2019, 5:30 p.m. 222 Laporte Avenue, Colorado River Community Room 09/19/2019 – Excerpt from Unapproved DRAFT MINUTES Page 1 Horsetooth Supply Line Shutdown Emergency Water Supply Project Water Production Manager Mark Kempton summarized the Three Separate inter- governmental agreements (IGAs) between combinations of the City of Fort Collins, Fort-Collins Loveland, East Larimer County, and North Weld County water districts (the Tri-Districts), the City of Greeley, and the Northern Colorado Water Conservancy District (Northern Water) regarding a project to provide a temporary backup water supply pumping system during an October-November 2020 shutdown of the Soldier Canyon Dam Outlet pipeline from Horsetooth Reservoir to the two drinking water treatment plants serving the City of Fort Collins and surrounding areas. The pumping system is intended as a backup supply system to the primary Cache la Poudre River water supply during the 60-day long planned outage of the Horsetooth water line. City of Fort Collins uses two drinking water sources: Horsetooth (HT) and Poudre River. The HT Pipeline is operated by Northern Water. Water Treatment Facility will be on a single water source during the project: Poudre River; agreement and temporary backup water supply pumping system will mitigate risk associated with single water source; Mr. Kempton stated he will return to Water Board next month with estimate cost and appropriation request. Discussion Highlights: Board members commented on and inquired about various related topics including if a catastrophic event occurs, will the pumps be adequate (Mr. Kempton replied that they could ask Northern to delay the project in the event of a wildfire, etc.); long term mitigation technique; extensive public outreach on water conservation to decrease water demand; temporary because it’s less expensive (a permanent pump station would cost significantly more). Board Member Steve Malers moved that the Water Board recommend to City Council the adoption of three Inter Governmental Agreements with a combination of the Tri- Districts, the City of Greeley, and Northern Water, authorizing the City to enter into contracts to develop a backup water supply system during the planned shutdown during the Horsetooth Reservoir water supply line in Fall 2020. Board Member Phyllis Ortman seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 ATTACHMENT 3 9.3 Packet Pg. 109 Attachment: Water Board Minutes September 19, 2019 (Draft) (8266 : Horsetooth Reservoir Line Shutdown) -1- RESOLUTION 2019-096 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS, THE EAST LARIMER COUNTY WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT, THE NORTH WELD COUNTY WATER DISTRICT, AND THE NORTHERN COLORADO WATER CONSERVANCY DISTRICT ACTING BY AND THROUGH THE PLEASANT VALLEY PIPELINE WATER ACTIVITY ENTERPRISE REGARDING A SUPPLEMENTAL MEANS TO DELIVER HORSETOOTH RESERVOIR WATER TO THE FORT COLLINS WATER TREATMENT FACILITY AND SOLIDER CANYON WATER TREATMENT PLANT (PLEASANT VALLEY PIPELINE MODIFICATIONS AND USE) WHEREAS, Horsetooth Reservoir is a water storage reservoir operated by the Northern Colorado Water Conservancy District (“Northern Water”), which is created by the Soldier Canyon Dam and other infrastructure; and WHEREAS, the Soldier Canyon Outlet is a pipe and related infrastructure that conveys water from Horsetooth Reservoir under and through Soldier Canyon Dam; and WHEREAS, water delivered through the Soldier Canyon Outlet is ultimately delivered to, among other locations: the City’s Water Treatment Facility and the Soldier Canyon Filter Plant, which is owned and operated by the East Larimer County Water District, the Fort Collins- Loveland Water District, and the North Weld County Water District (collectively, “Tri- Districts”) through the Soldier Canyon Water Treatment Authority (together, “Horsetooth Water Treatment Plants”); and WHEREAS, Northern Water intends to temporarily shut down the Soldier Canyon Outlet during 2020 for approximately 45 to 60 days for inspection, maintenance, and related purposes, which will result in a water supply disruption for the City and the Tri-Districts and a potential need to convey water in Horsetooth Reservoir (“Horsetooth Water”) to the Horsetooth Water Treatment Plants by a means other than the Soldier Canyon Outlet; and WHEREAS, the City and the Tri-Districts are likewise interested in developing supplemental infrastructure to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants in order to build redundancy and resiliency into their water treatment and delivery systems; and WHEREAS, pursuant to Resolution 2019-055 and the Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet, dated May 24, 2019 (“Study IGA”), Fort Collins and the Tri-Districts investigated ways to address this water supply disruption and alternative ways to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants; and Packet Pg. 110 -2- WHEREAS, following the completion of the study under the Study IGA, the City and the Tri-Districts, in consultation with other stakeholders including Northern Water and the City of Greeley (“Greeley”), have concluded that a project involving the use of existing and some new infrastructure (“Project”) would best address these objectives; and WHEREAS, this Project involves Horsetooth Water being delivered out of Horsetooth Reservoir and into the Charles Hansen Supply Canal, then through a headgate on that canal operated by Greeley at its Bellvue Water Treatment Plant, then through Greeley’s pipes and infrastructure and certain new pipes, then through certain wet wells and pumps, then through new pipes and into the Pleasant Valley Pipeline to the Horsetooth Water Treatment Plants; and WHEREAS, staff from the City, the Tri-Districts, and Northern Water have negotiated an agreement regarding certain aspects of this Project, as set forth in the form of Agreement attached hereto as Exhibit “A,” which primarily concerns the ability of the City and the Tri- Districts to use the Pleasant Valley Pipeline. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Manager is hereby authorized to execute an agreement substantially in the form of Exhibit “A”, with such modifications and additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 111 Page 1 of 12 AGREEMENT REGARDING A PROJECT FOR A SUPPLEMENTAL MEANS TO DELIVER HORSETOOTH RESERVOIR WATER TO THE FORT COLLINS WATER TREATMENT FACILITY AND SOLIDER CANYON WATER TREATMENT PLANT (City of Fort Collins, the Tri-Districts, and the Northern Colorado Water Conservancy District acting by and through the Pleasant Valley Pipeline Water Activity Enterprise) (Pleasant Valley Pipeline Modifications and Use) This Agreement is entered into by and between the following Parties:  the City of Fort Collins, Colorado, a home rule municipality (“Fort Collins”);  the East Larimer County Water District, a political subdivision of the State of Colorado (“ELCO”);  the Fort Collins-Loveland Water District, a political subdivision of the State of Colorado (“FCLWD”);  the North Weld County Water District, a political subdivision of the State of Colorado (“NWCWD”); and  the Northern Colorado Water Conservancy District (“Northern Water”), a quasi- municipal entity and political subdivision of the State of Colorado, acting by and through the Pleasant Valley Pipeline Water Activity Enterprise (“PVP Enterprise”). ELCO, FCLWD, and NWCWD are collectively referred to as the “Tri-Districts.” RECITALS A. Horsetooth Reservoir is a water storage reservoir that Northern Water operates, which is created by the Soldier Canyon Dam and other infrastructure. The Soldier Canyon Outlet is a pipe and related infrastructure that conveys water from Horsetooth Reservoir under and through Soldier Canyon Dam. B. Water delivered through the Soldier Canyon Outlet is ultimately delivered to, among other locations: Fort Collins’ Water Treatment Facility and the Soldier Canyon Filter Plant, which is owned and operated by the Tri-Districts through the Soldier Canyon Water Treatment Authority (together, “Horsetooth Water Treatment Plants”). C. Northern Water intends to temporarily shut down the Soldier Canyon Outlet during 2020 for approximately 45 to 60 days for inspection, maintenance, and related purposes. This will result in a water supply disruption for Fort Collins and the Tri-Districts and a potential need to convey water in Horsetooth Reservoir (“Horsetooth Water”) to the Horsetooth Water Treatment Plants by a means other than the Soldier Canyon Outlet. D. Fort Collins and the Tri-Districts are likewise interested by developing supplemental infrastructure to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants in order to build redundancy and resiliency into their water treatment and delivery systems. EXHIBIT A Page 2 of 12 Nothing in this Agreement is intended to affect in any way Fort Collins’ and the Tri-Districts’ rights to the Soldier Canyon Outlet. E. Pursuant to the Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet, dated May 24, 2019 (“Study IGA”), Fort Collins and the Tri-Districts investigated ways to address this water supply disruption and alternative ways to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants. F. Following the completion of the study under the Study IGA, Fort Collins and the Tri- Districts, in consultation with other stakeholders including Northern Water and the City of Greeley (“Greeley”), have concluded that a project involving the use of existing and some new infrastructure (“Project”) would best address these objectives. This Project involves Horsetooth Water being delivered out of Horsetooth Reservoir and into the Charles Hansen Supply Canal, then through a headgate on that canal operated by Greeley at its Bellvue Water Treatment Plant, then through Greeley’s pipes and infrastructure and certain new pipes, then through certain wet wells and pumps, then through new pipes and into the Pleasant Valley Pipeline to the Horsetooth Water Treatment Plants. Exhibit A contains diagrams illustrating the key physical attributes of the Project. G. Northern Water, acting by and through the PVP Enterprise, constructed and operates the Pleasant Valley Pipeline (“PV Pipeline”), which delivers untreated water from the Munroe Canal to the Fort Collins and the Tri-Districts. H. Fort Collins has an Allotment Contract with the PVP Enterprise for capacity in the PV Pipeline, with the original contract dated February 28, 2003, an amendment dated May 30, 2006, and a supplement dated January 20, 2014 (collectively, “Fort Collins Allotment Contract”). I. The Soldier Canyon Water Treatment Authority as successor in interest to the Soldier Canyon Filter Plant has an Allotment Contract with the PVP Enterprise for capacity in the PV Pipeline, with the original contract dated February 28, 2003, an amendment dated October 2, 2012 and supplement dated February 10, 2014 (collectively, “Tri-Districts Allotment Contract”). J. Pursuant to the Fort Collins Allotment Contract and the Tri-Districts Allotment Contract, the PV Pipeline shall only be used for the transmission of certain water, including “District water or Subdistrict water from Horsetooth Reservoir” and “any other water deliverable form Horsetooth Reservoir with the special approval of the Board and the approval of the Secretary of the Interior of the United States of America or his designee (if Secretarial approval is required by law or contract).” K. This Agreement concerns the ability of Fort Collins and the Tri-Districts to use the PV Pipeline in the Project in the short and long-term. L. The Parties acknowledge that implementing the Project will require various additional agreements. Page 3 of 12 M. As governmental entities, the Parties are authorized into enter into the following intergovernmental agreement pursuant to C.R.S. §29-1-203. AGREEMENT 1. INCORPORATION OF RECITALS. The foregoing recitals are hereby incorporated as if fully restated in their entirety. 2. USE OF THE PV PIPELINE TO CONVEY HORSETOOTH WATER. The Parties confirm that, under the Fort Collins Allotment Contract and the Tri-Districts Allotment Contract, Fort Collins and the Tri-Districts are entitled to deliver their Horsetooth Water through the PV Pipeline. 3. MODIFICATION OF THE PV PIPELINE. The PVP Enterprise hereby authorizes Fort Collins and the Tri-Districts to modify the PV Pipeline for the Project pursuant to the terms and conditions of this Agreement. With respect to the PV Pipeline, the Project entails cutting the PV Pipeline to add a “T” and a valve such that Horsetooth Water can be delivered from the Charles Hanson Supply Canal and into the PV Pipeline (“PV Pipeline Work”), as shown on Exhibit B. 3.1. Cooperation. Fort Collins, the Tri-Districts, and the PVP Enterprise agree to cooperate in good faith to coordinate the PV Pipeline Work. 3.2. Plans. The PV Pipeline Work shall be completed pursuant to final construction plans. Any other work, materials, equipment or machinery not specifically described or expressly covered herein, but which is required or necessary to perform or complete the PV Pipeline Work, which is contemplated, shall be deemed to be, and is, covered by this Agreement. The Parties agree to confer and coordinate during the development of the construction plans; it shall ultimately be the responsibility of Fort Collins and the Tri- Districts to develop and pay for all costs and expenses related to the construction plans. The construction plans shall not be final until agreed to by Fort Collins, the Tri-Districts, and the PVP Enterprise. 3.3. Permits. Fort Collins and the Tri-Districts shall obtain all necessary consents, authorizations, and permits, and shall perform the PV Pipeline Work in a good and workmanlike manner, in accordance with sound and acceptable industry or professional practices and standards, and in accordance with all applicable laws, rules, regulations, codes, standards, plans, and specifications for the replacement of the work. 3.4. Leakage. Should the PV Pipeline Work result in water seepage or leakage from the PV Pipeline in the two years following the completion of the PV Pipeline Work at a rate greater than what historically occurred before the PV Pipeline Work was performed, Fort Collins and the Tri-Districts shall repair the PV Pipeline as soon as possible to stop the seepage or leakage at a rate greater than what historically occurred before the PV Pipeline Work was performed. Alternatively, by mutual agreement, the PVP Enterprise Page 4 of 12 may perform such repair and Fort Collins and the Tri-Districts shall reimburse the PVP Enterprise for all costs and expenses incurred in repairing the PV Pipeline. 3.5. Construction Schedule. Fort Collins and the Tri-Districts shall provide a written construction schedule for review and approval by the PVP Enterprise at least 28 days prior to the planned start of construction. Fort Collins and the Tri-Districts agree that the PV Pipeline Work shall proceed expeditiously with reasonable diligence from the commencement of construction to its completion. 3.6. Inspections. The PVP Enterprise is permitted to inspect the PV Pipeline Work during construction. Upon completion of the PV Pipeline Work, Fort Collins and the Tri- Districts shall promptly notify the PVP Enterprise, and the Parties shall jointly inspect the PV Pipeline where the work occurred. If there are any deficiencies in the PV Pipeline Work, or any variation from the final construction plans, Fort Collins and the Tri- Districts shall forthwith remedy the same. The PVP Enterprise’s right to inspect the PV Pipeline Work in no way relieves Fort Collins and the Tri-Districts of their liability for improper construction or design. The PVP Enterprise’s inspection is solely for the benefit of the PVP Enterprise and creates no obligation to Fort Collins and the Tri- Districts. 3.7. Ownership. The PVP Enterprise shall retain ownership of the PV Pipeline and the new “T” and valve installed in it under the PV Pipeline Work. 3.8. Temporary License. The PVP Enterprise hereby grants to Fort Collins and the Tri-Districts and their contractors and consultants associated with the Project a temporary license on, over, and across the PV Pipeline to access the structure for the purpose of the PV Pipeline Work. 4. NO FURTHER AMENDMENTS. Except to the extent expressly stated in this Agreement, nothing in this Agreement shall affect the Allotment Contracts of Fort Collins and the Tri-Districts with the PVP Enterprise. 5. FISCAL CONTINGENCY. Notwithstanding any other provisions of this Agreement to the contrary, the obligations of the Parties in fiscal years after the fiscal year of this Agreement shall be subject to appropriation of funds sufficient and intended therefor, with the Party having the sole discretion to determine whether the subject funds are sufficient and intended for use under this Agreement. The failure of a Party to appropriate such funds shall be grounds for termination of this Agreement as to such Party upon written notice pursuant to Paragraph 10. 6. REMEDIES. If any Party fails to comply with the provisions of this Agreement, the other Parties, after providing prompt written notification to the noncomplying Party, and upon the failure of the noncomplying Party to achieve compliance within 35 days following receipt of such notice, may seek all such remedies available under Colorado law. 7. NO THIRD-PARTY BENEFICIARIES. This Agreement is entered into between the Parties for the purposes set forth herein. It is the intent of the Parties that they are the only Page 5 of 12 beneficiaries of this Agreement and the Parties are only benefitted to the extent provided under the express terms and conditions of this Agreement. 8. GOVERNING LAW AND ENFORCEABILITY. This Agreement shall be construed in accordance with the laws of the State of Colorado. The Parties recognize that the constitutions, statutes, and rules and regulations of the State of Colorado and of the United States, as well as the Parties’ respective bylaws, city charters and codes, and rules and regulations, impose certain legal constraints on each Party and that the Parties intend to carry out the terms and conditions of this Agreement subject to those constraints. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 9. WAIVER. A waiver of a breach of any of the provisions of this Agreement shall not constitute a waiver of any subsequent breach of the same or another provision of this Agreement. Nothing in this Agreement shall be construed as any waiver of governmental immunity of the Parties who are governments or any other governmental provisions of State law. Specifically, by entering into this Agreement, neither Party waives the monetary limitations on liability or any other rights, immunities, or protections provided by the Colorado Government Immunity Act, C.R.S. § 24-10-101, et seq., or any successor or similar statutes of the State of Colorado. 10. NOTICES. All notices or other communications hereunder shall be sufficiently given and shall be deemed given (i) when personally delivered; (ii) on the date and at the time of delivery or refusal of acceptance of delivery if delivered or attempted to be delivered by an overnight courier service to the party to whom notice is given at the address specified below; (iii) on the date and at the time shown on the electronic mail if sent by electronic transmission at the e-mail addresses set forth below and receipt of such electronic mail is acknowledged by the intended recipient thereof; or (iv) after the lapse of five business days following mailing by certified mail-return receipt requested, postage prepaid, addressed as follows: To Fort Collins: City Manager City Hall West 300 LaPorte Avenue; P.O. Box 580 Fort Collins, Colorado 80522-0580 With copy to: Fort Collins City Attorney 300 LaPorte Avenue; P.O. Box 580 Fort Collins, Colorado 80522-0580 E-mail: epotyondy@fcgov.com and: Fort Collins Utilities Attn: Director of Plant Operations 4316 LaPorte Ave. Fort Collins, Colorado 80521 E-mail: mkempton@fcgov.com To ELCO: East Larimer County Water District Page 6 of 12 Attn: District Manager 232 S. Link Lane (Zip Code: 80524) P.O. Box 2044 Fort Collins, Colorado 80522 Telephone: (970) 493-2044 Email: mikes@elcowater.org With copy to: Hasler, Fonfara and Goddard LLP Attn: Joseph H. Fonfara 125 S. Howes Street, 6th Floor (Zip Code: 80521) P.O. Box 2267 Fort Collins, CO 80522 Telephone: (970) 493-5070 E-mail: JoeF@HFGLawfirm.com To FCLWD: Fort Collins-Loveland Water District Attn: District Manager 5150 Snead Drive Fort Collins, Colorado 80525 Telephone: (970) 226-3104 E-mail: chrism@fclwd.com With copy to: Collins Cockrel & Cole, P.C. Attn: Robert G. Cole 390 Union Boulevard, Ste. 400 Denver, Colorado 80228-1556 Telephone: (303) 218-7197 E-mail: rcole@cccfirm.com To NWCWD: North Weld County Water District Attn: District Manager 32825 CR 39 P.O. Box 56 Lucerne, Colorado 80646 Telephone: (970) 356-3020 E-mail: water@nwcwd.org With copy to: Hasler, Fonfara and Goddard LLP Attn: Joseph H. Fonfara 125 S. Howes Street, 6th Floor (Zip Code: 80521) P.O. Box 2267 Fort Collins, CO 80522 Telephone: (970) 493-5070 E-mail: JoeF@HFGLawfirm.com To Northern and PVP Enterprise: Page 7 of 12 With a copy to: 11. CONSTRUCTION. This Agreement shall be construed according to its fair meaning as it was prepared by the Parties. Headings in this Agreement are for convenience and reference only and shall in no way define, limit, or prescribe the scope or intent of any provision of this Agreement. 12. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the Parties regarding the matters addressed herein. This Agreement binds and benefits the Parties and their respective successors. Covenants or representations not contained in this Agreement regarding the matters addressed herein shall not bind the Parties. 13. REPRESENTATIONS. Each Party represents to the other parties that it has the power and authority to enter into this Agreement and the individual signing below on behalf of that Party has the authority to execute this Agreement on its behalf and legally bind that Party. 14. ASSIGNMENT. No Party may assign any rights or delegate any duties under this Agreement without the written consent of all other Parties. 15. SEVERABILITY. If any provision of this Agreement shall prove to be illegal, invalid, unenforceable or impossible of performance, the remainder of this Agreement shall remain in full force and effect. [Remainder of Page Intentionally Blank] Page 8 of 12 CITY OF FORT COLLINS, COLORADO, a home-rule city By: ______________________________________ Date: Darin A. Atteberry, City Manager ATTEST: By: ______________________________________ City Clerk Name: ____________________________________ Title: ____________________________________ APPROVED AS TO LEGAL FORM: By: ______________________________________ Eric R. Potyondy, Assistant City Attorney II Page 9 of 12 EAST LARIMER COUNTY WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Mike Scheid, General Manager Page 10 of 12 FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Chris Matkins, General Manager Page 11 of 12 NORTH WELD COUNTY WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Eric Reckentine, General Manager Page 12 of 12 NORTHERN COLORADO WATER CONSERVANCY DISTRICT, a quasi-municipal entity and political subdivision of the State of Colorado, ACTING BY AND THROUGH THE PLEASANT VALLEY PIPELINE WATER ACTIVITY ENTERPRISE By: ________________________________________ Date: Brad Wind, General Manager -1- RESOLUTION 2019-097 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS, THE EAST LARIMER COUNTY WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT, THE NORTH WELD COUNTY WATER DISTRICT, AND THE CITY OF GREELEY REGARDING A SUPPLEMENTAL MEANS TO DELIVER HORSETOOTH RESERVOIR WATER TO THE FORT COLLINS WATER TREATMENT FACILITY AND SOLIDER CANYON WATER TREATMENT PLANT (GREELEY INFRASTRUCTURE MODIFICATIONS AND USE) WHEREAS, Horsetooth Reservoir is a water storage reservoir operated by the Northern Colorado Water Conservancy District (“Northern Water”), which is created by the Soldier Canyon Dam and other infrastructure; and WHEREAS, the Soldier Canyon Outlet is a pipe and related infrastructure that conveys water from Horsetooth Reservoir under and through Soldier Canyon Dam; and WHEREAS, water delivered through the Soldier Canyon Outlet is ultimately delivered to, among other locations: the City’s Water Treatment Facility and the Soldier Canyon Filter Plant, which is owned and operated by the East Larimer County Water District, the Fort Collins- Loveland Water District, and the North Weld County Water District (collectively, “Tri- Districts”) through the Soldier Canyon Water Treatment Authority (together, “Horsetooth Water Treatment Plants”); and WHEREAS, Northern Water intends to temporarily shut down the Soldier Canyon Outlet during 2020 for approximately 45 to 60 days for inspection, maintenance, and related purposes, which will result in a water supply disruption for the City and the Tri-Districts and a potential need to convey water in Horsetooth Reservoir (“Horsetooth Water”) to the Horsetooth Water Treatment Plants by a means other than the Soldier Canyon Outlet; and WHEREAS, the City and the Tri-Districts are likewise interested in developing supplemental infrastructure to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants in order to build redundancy and resiliency into their water treatment and delivery systems; and WHEREAS, pursuant to Resolution 2019-055 and the Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet, dated May 24, 2019 (“Study IGA”), Fort Collins and the Tri-Districts investigated ways to address this water supply disruption and alternative ways to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants; and WHEREAS, following the completion of the study under the Study IGA, the City and the Tri-Districts, in consultation with other stakeholders including Northern Water and the City of Packet Pg. 124 -2- Greeley (“Greeley”), have concluded that a project involving the use of existing and some new infrastructure (“Project”) would best address these objectives; and WHEREAS, this Project involves Horsetooth Water being delivered out of Horsetooth Reservoir and into the Charles Hansen Supply Canal, then through a headgate on that canal operated by Greeley at its Bellvue Water Treatment Plant, then through Greeley’s pipes and infrastructure and certain new pipes, then through certain wet wells and pumps, then through new pipes and into the Pleasant Valley Pipeline to the Horsetooth Water Treatment Plants; and WHEREAS, staff from the City, the Tri-Districts, and Greeley have negotiated an agreement regarding certain aspects of this Project, as set forth in the form of Agreement attached hereto as Exhibit “A,” which primarily concerns the ability of the City and the Tri- Districts to use certain pipes and other infrastructure owned by Greeley at the Bellvue Water Treatment Plant. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Manager is hereby authorized to execute an agreement substantially in the form of Exhibit “A”, with such modifications and additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 125 Page 1 of 12 AGREEMENT REGARDING A PROJECT FOR A SUPPLEMENTAL MEANS TO DELIVER HORSETOOTH RESERVOIR WATER TO THE FORT COLLINS WATER TREATMENT FACILITY AND SOLIDER CANYON WATER TREATMENT PLANT (City of Fort Collins, the Tri-Districts, and the City of Greeley) (Greeley Infrastructure Modifications and Use) This Agreement is entered into by and between the following Parties: • the City of Fort Collins, Colorado, a home rule municipality (“Fort Collins”); • the East Larimer County Water District, a political subdivision of the State of Colorado (“ELCO”); • the Fort Collins-Loveland Water District, a political subdivision of the State of Colorado (“FCLWD”); • the North Weld County Water District, a political subdivision of the State of Colorado (“NWCWD”), and • the City of Greeley, a home rule municipality (“Greeley”). ELCO, FCLWD, and NWCWD are collectively referred to as the “Tri-Districts.” RECITALS A. Horsetooth Reservoir is a water storage reservoir operated by the Northern Colorado Water Conservancy District (“Northern Water”), which is created by the Soldier Canyon Dam and other infrastructure. The Soldier Canyon Outlet is a pipe and related infrastructure that conveys water from Horsetooth Reservoir under and through Soldier Canyon Dam. B. Water delivered through the Soldier Canyon Outlet is ultimately delivered to, among other locations: Fort Collins’ Water Treatment Facility and the Soldier Canyon Filter Plant, which is owned and operated by the Tri-Districts through the Soldier Canyon Water Treatment Authority (together, “Horsetooth Water Treatment Plants”). C. Northern Water intends to temporarily shut down the Soldier Canyon Outlet during 2020 for approximately 45 to 60 days for inspection, maintenance, and related purposes. This will result in a water supply disruption for Fort Collins and the Tri-Districts and a potential need to convey water in Horsetooth Reservoir (“Horsetooth Water”) to the Horsetooth Water Treatment Plants by a means other than the Soldier Canyon Outlet. D. Fort Collins and the Tri-Districts are likewise interested by developing supplemental infrastructure to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants in order to build redundancy and resiliency into their water treatment and delivery systems. Nothing in this Agreement is intended to affect in any way Fort Collins’ and the Tri-Districts’ rights to the Soldier Canyon Outlet. EXHIBIT A a Packet Pg. 126 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 2 of 12 E. Pursuant to the Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet, dated May 24, 2019 (“Study IGA”), Fort Collins and the Tri-Districts investigated ways to address this water supply disruption and alternative ways to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants. F. Following the completion of the study under the Study IGA, Fort Collins and the Tri- Districts, in consultation with other stakeholders including Northern Water and the City of Greeley (“Greeley”), have concluded that a project involving the use of existing and some new infrastructure (“Project”) would best address these objectives. This Project involves Horsetooth Water being delivered out of Horsetooth Reservoir and into the Charles Hansen Supply Canal, then through a headgate on that canal operated by Greeley at its Bellvue Water Treatment Plant, then through Greeley’s pipes and infrastructure and certain new pipes, then through certain wet wells and pumps, then through new pipes and into the Pleasant Valley Pipeline to the Horsetooth Water Treatment Plants. Exhibit A contains diagrams illustrating the key physical attributes of the Project. G. This Agreement concerns the ability of Fort Collins and the Tri-Districts to use certain pipes and other infrastructure owned by Greeley at the Bellvue Water Treatment Plant (“Greeley Infrastructure”) in the Project in the short and long-term. H. The Parties acknowledge that implementing the Project will require various additional agreements. I. The Parties acknowledge that implementing the Project may require various additional agreements, including those with Northern Water and potentially others, especially as they pertain to existing infrastructure and the property of others. J. As governmental entities, the Parties are authorized into enter into the following intergovernmental agreement pursuant to C.R.S. §29-1-203. AGREEMENT 1. INCORPORATION OF RECITALS. The foregoing recitals are hereby incorporated as if fully restated in their entirety. 2. MODIFICATION OF A GREELEY PIPE. Greeley hereby authorizes Fort Collins and the Tri-Districts to modify one of its pipes for the Project (“Greeley Pipe”) pursuant to the terms and conditions of this Agreement. With respect to the Greeley Pipe, the Project entails cutting the Greeley Pipe to add a “T” and a valve such that Horsetooth Water can be delivered from the Charles Hanson Supply Canal, into the Greeley Infrastructure, and out through the new “T” and valve, and ultimately into the Pleasant Valley Pipeline (“Project Greeley Pipeline Work”), as shown on Exhibit B. a Packet Pg. 127 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 3 of 12 2.1. Cooperation. Fort Collins, the Tri-Districts, and Greeley agree to cooperate in good faith to coordinate the Greeley Pipe Work. 2.2. Plans. The Greeley Pipe Work shall be completed pursuant to final construction plans. Any other work, materials, equipment or machinery not specifically described or expressly covered herein, but which is required or necessary to perform or complete the Greeley Pipe Work, which is contemplated, shall be deemed to be, and is, covered by this Agreement. The Parties agree to confer and coordinate during the development of the construction plans; it shall ultimately be the responsibility of Fort Collins and the Tri- Districts to develop and pay for all costs and expenses related to the construction plans. The construction plans shall not be final until agreed to by Fort Collins, the Tri-Districts, and Greeley. 2.3. Permits. Fort Collins and the Tri-Districts shall obtain all necessary consents, authorizations, and permits, and shall perform the Greeley Pipe in a good and workmanlike manner, in accordance with sound and acceptable industry or professional practices and standards, and in accordance with all applicable laws, rules, regulations, codes, standards, plans, and specifications for the work. 2.4. Leakage. Should the Greeley Pipe Work result in water seepage or leakage from the Greeley Pipe in the two years following the completion of the Greeley Pipe Work at a rate greater than what historically occurred before the Greeley Pipe Work was performed, Fort Collins and the Tri-Districts shall repair the Greeley Pipe as soon as possible to stop the seepage or leakage at a rate greater than what historically occurred before the Greeley Pipe Work was performed. Alternatively, by mutual agreement, Greeley may perform such repair and Fort Collins and the Tri-Districts shall reimburse Greeley for all costs and expenses incurred in repairing the Greeley Pipe. 2.5. Construction Schedule. Fort Collins and the Tri-Districts shall provide a written construction schedule for review and approval by Greeley at least 28 days prior to the planned start of construction. Fort Collins and the Tri-Districts agree that the Greeley Pipe Work shall proceed expeditiously with reasonable diligence from the commencement of construction to its completion. 2.6. Inspections. Greeley is permitted to inspect the Greeley Pipe Work during construction. Upon completion of the Greeley Pipe Work, Fort Collins and the Tri- Districts shall promptly notify the PVP Enterprise, and the Parties shall jointly inspect the PV Pipeline where the work occurred. If there are any deficiencies in the Greeley Pipe Work, or any variation from the final construction plans, Fort Collins and the Tri-Districts shall forthwith remedy the same. Greeley’s right to inspect the Greeley Pipe Work in no way relieves Fort Collins and the Tri-Districts of their liability for improper construction or design. Greeley’s inspection is solely for the benefit of Greeley and creates no obligation to Fort Collins and the Tri-Districts. 2.7. Ownership. Greeley shall retain ownership of the Greeley Pipe and the new “T” and value installed in it under the Greeley Pipe Work. a Packet Pg. 128 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 4 of 12 2.8. Temporary License. Greeley hereby grants to Fort Collins and the Tri-Districts and their contractors and consultants associated with the Project a temporary license on, over, and across the Greeley Pipe to access the structure for the purpose of the Greeley Pipe Work. 3. LICENSE TO USE GREELEY INFRASTRUCTURE. Greeley hereby grants to Fort Collins and the Tri-Districts a license to use the Greeley Infrastructure to convey Horsetooth Water through the Greeley Infrastructure, as modified under this Agreement, to the Horsetooth Water Treatment Plants. 4. GREELEY’S DELAYED USE OF THE PLEASANT VALLEY PIPELINE IN 2020 OR 2021. Greeley generally uses the Soldier Canyon Outlet and the Pleasant Valley Pipeline to deliver its Horsetooth Water to its Bellvue Water Treatment Plant from November 1st through March 31st. However, Northern’s temporary shutdown the Soldier Canyon Outlet will run into November 2020 or November 2021, thus precluding Greeley’s use of the Soldier Canyon Outlet and the Pleasant Valley Pipeline during that time. Greeley agrees that Fort Collins and the Tri- Districts may use the Pleasant Valley Pipeline to convey their Horsetooth Water. Except to the extent expressly stated in this Agreement, nothing herein shall affect the Agreement for Use of Capacity in Soldier Canyon Dam Outlet Works, dated December 27, 2000, between Fort Collins and Greeley. 5. COMPENSATION. ____________. 6. OPERATIONS. The Parties desire to generally minimize the use of the New Infrastructure and the associated costs. The Parties shall confer as frequently as necessary before and during that period regarding the timing and amount of use of the New Infrastructure. If that the New Infrastructure needs to be used, the operations and maintenance of the New Infrastructure will be performed jointly by the City, the Tri-Districts, and Greeley through their respective staff and representatives. 7. FISCAL CONTINGENCY. Notwithstanding any other provisions of this Agreement to the contrary, the obligations of the Parties in fiscal years after the fiscal year of this Agreement shall be subject to appropriation of funds sufficient and intended therefor, with the Party having the sole discretion to determine whether the subject funds are sufficient and intended for use under this Agreement. The failure of a Party to appropriate such funds shall be grounds for termination of this Agreement as to such Party upon written notice pursuant to Paragraph 12. 8. REMEDIES. If any Party fails to comply with the provisions of this Agreement, the other Parties, after providing prompt written notification to the noncomplying Party, and upon the failure of the noncomplying Party to achieve compliance within 35 days following receipt of such notice, may seek all such remedies available under Colorado law. 9. NO THIRD-PARTY BENEFICIARIES. This Agreement is entered into between the Parties for the purposes set forth herein. It is the intent of the Parties that they are the only a Packet Pg. 129 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 5 of 12 beneficiaries of this Agreement and the Parties are only benefitted to the extent provided under the express terms and conditions of this Agreement. 10. GOVERNING LAW AND ENFORCEABILITY. This Agreement shall be construed in accordance with the laws of the State of Colorado. The Parties recognize that the constitutions, statutes, and rules and regulations of the State of Colorado and of the United States, as well as the Parties’ respective bylaws, city charters and codes, and rules and regulations, impose certain legal constraints on each Party and that the Parties intend to carry out the terms and conditions of this Agreement subject to those constraints. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 11. WAIVER. A waiver of a breach of any of the provisions of this Agreement shall not constitute a waiver of any subsequent breach of the same or another provision of this Agreement. Nothing in this Agreement shall be construed as any waiver of governmental immunity of the Parties who are governments or any other governmental provisions of State law. Specifically, by entering into this Agreement, neither Party waives the monetary limitations on liability or any other rights, immunities, or protections provided by the Colorado Government Immunity Act, C.R.S. § 24-10-101, et seq., or any successor or similar statutes of the State of Colorado. 12. NOTICES. All notices or other communications hereunder shall be sufficiently given and shall be deemed given (i) when personally delivered; (ii) on the date and at the time of delivery or refusal of acceptance of delivery if delivered or attempted to be delivered by an overnight courier service to the party to whom notice is given at the address specified below; (iii) on the date and at the time shown on the electronic mail if sent by electronic transmission at the e-mail addresses set forth below and receipt of such electronic mail is acknowledged by the intended recipient thereof; or (iv) after the lapse of five business days following mailing by certified mail-return receipt requested, postage prepaid, addressed as follows: To Fort Collins: City Manager City Hall West 300 LaPorte Avenue; P.O. Box 580 Fort Collins, Colorado 80522-0580 With copy to: Fort Collins City Attorney 300 LaPorte Avenue; P.O. Box 580 Fort Collins, Colorado 80522-0580 E-mail: epotyondy@fcgov.com and: Fort Collins Utilities Attn: Director of Plant Operations 4316 LaPorte Ave. Fort Collins, Colorado 80521 E-mail: mkempton@fcgov.com To ELCO: East Larimer County Water District Attn: District Manager a Packet Pg. 130 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 6 of 12 232 S. Link Lane (Zip Code: 80524) P.O. Box 2044 Fort Collins, Colorado 80522 Telephone: (970) 493-2044 Email: mikes@elcowater.org With copy to: Hasler, Fonfara and Goddard LLP Attn: Joseph H. Fonfara 125 S. Howes Street, 6th Floor (Zip Code: 80521) P.O. Box 2267 Fort Collins, CO 80522 Telephone: (970) 493-5070 E-mail: JoeF@HFGLawfirm.com To FCLWD: Fort Collins-Loveland Water District Attn: District Manager 5150 Snead Drive Fort Collins, Colorado 80525 Telephone: (970) 226-3104 E-mail: chrism@fclwd.com With copy to: Collins Cockrel & Cole, P.C. Attn: Robert G. Cole 390 Union Boulevard, Ste. 400 Denver, Colorado 80228-1556 Telephone: (303) 218-7197 E-mail: rcole@cccfirm.com To NWCWD: North Weld County Water District Attn: District Manager 32825 CR 39 P.O. Box 56 Lucerne, Colorado 80646 Telephone: (970) 356-3020 E-mail: water@nwcwd.org With copy to: Hasler, Fonfara and Goddard LLP Attn: Joseph H. Fonfara 125 S. Howes Street, 6th Floor (Zip Code: 80521) P.O. Box 2267 Fort Collins, CO 80522 Telephone: (970) 493-5070 E-mail: JoeF@HFGLawfirm.com To Greeley: Greeley Water and Sewer Department Attn: Deputy Director of Water Resources a Packet Pg. 131 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 7 of 12 1001 11th Avenue, Second Floor Greeley, Colorado 80631 With copy to: Greeley City Attorney’s Office Attn: Environmental and Water Resources 1100 10th Street, Suite 401 Greeley, Colorado 80631 daniel.biwer@greeleygov.com 13. CONSTRUCTION. This Agreement shall be construed according to its fair meaning as it was prepared by the Parties. Headings in this Agreement are for convenience and reference only and shall in no way define, limit, or prescribe the scope or intent of any provision of this Agreement. 14. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the Parties regarding the matters addressed herein. This Agreement binds and benefits the Parties and their respective successors. Covenants or representations not contained in this Agreement regarding the matters addressed herein shall not bind the Parties. 15. REPRESENTATIONS. Each Party represents to the other parties that it has the power and authority to enter into this Agreement and the individual signing below on behalf of that Party has the authority to execute this Agreement on its behalf and legally bind that Party. 16. ASSIGNMENT. No Party may assign any rights or delegate any duties under this Agreement without the written consent of all other Parties. 17. SEVERABILITY. If any provision of this Agreement shall prove to be illegal, invalid, unenforceable or impossible of performance, the remainder of this Agreement shall remain in full force and effect. [Remainder of Page Intentionally Blank] a Packet Pg. 132 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 8 of 12 CITY OF FORT COLLINS, COLORADO, a home-rule city By: ______________________________________ Date: Darin A. Atteberry, City Manager ATTEST: By: ______________________________________ City Clerk Name: ____________________________________ Title: ____________________________________ APPROVED AS TO LEGAL FORM: By: ______________________________________ Eric R. Potyondy, Assistant City Attorney II a Packet Pg. 133 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 9 of 12 EAST LARIMER COUNTY WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Mike Scheid, General Manager a Packet Pg. 134 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 10 of 12 FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Chris Matkins, General Manager a Packet Pg. 135 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 11 of 12 NORTH WELD COUNTY WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Eric Reckentine, General Manager a Packet Pg. 136 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) Page 12 of 12 CITY OF GREELEY, COLORADO, a home rule municipality By: ________________________________________ Date: Roy Otto, City Manager AS TO LEGAL FORM: By: ________________________________________ City Attorney’s Office a Packet Pg. 137 Attachment: Exhibit A (8314 : Horsetooth Reservoir Line Shutdown - Greeley RESO) -1- RESOLUTION 2019-098 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS, THE EAST LARIMER COUNTY WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT, AND THE NORTH WELD COUNTY WATER DISTRICT REGARDING A SUPPLEMENTAL MEANS TO DELIVER HORSETOOTH RESERVOIR WATER TO THE FORT COLLINS WATER TREATMENT FACILITY AND SOLIDER CANYON WATER TREATMENT PLANT (PROJECT WORK – NEW INFRASTRUCTURE – NEW PROPERTY RIGHTS) WHEREAS, Horsetooth Reservoir is a water storage reservoir operated by the Northern Colorado Water Conservancy District (“Northern Water”), which is created by the Soldier Canyon Dam and other infrastructure; and WHEREAS, the Soldier Canyon Outlet is a pipe and related infrastructure that conveys water from Horsetooth Reservoir under and through Soldier Canyon Dam; and WHEREAS, water delivered through the Soldier Canyon Outlet is ultimately delivered to, among other locations: the City’s Water Treatment Facility and the Soldier Canyon Filter Plant, which is owned and operated by the East Larimer County Water District, the Fort Collins- Loveland Water District, and the North Weld County Water District (collectively, “Tri- Districts”) through the Soldier Canyon Water Treatment Authority (together, “Horsetooth Water Treatment Plants”); and WHEREAS, Northern Water intends to temporarily shut down the Soldier Canyon Outlet during 2020 for approximately 45 to 60 days for inspection, maintenance, and related purposes, which will result in a water supply disruption for the City and the Tri-Districts and a potential need to convey water in Horsetooth Reservoir (“Horsetooth Water”) to the Horsetooth Water Treatment Plants by a means other than the Soldier Canyon Outlet; and WHEREAS, the City and the Tri-Districts are likewise interested in developing supplemental infrastructure to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants in order to build redundancy and resiliency into their water treatment and delivery systems; and WHEREAS, pursuant to Resolution 2019-055 and the Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet, dated May 24, 2019 (“Study IGA”), Fort Collins and the Tri-Districts investigated ways to address this water supply disruption and alternative ways to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants; and WHEREAS, following the completion of the study under the Study IGA, the City and the Tri-Districts, in consultation with other stakeholders including Northern Water and the City of Packet Pg. 138 -2- Greeley (“Greeley”), have concluded that a project involving the use of existing and some new infrastructure (“Project”) would best address these objectives; and WHEREAS, this Project involves Horsetooth Water being delivered out of Horsetooth Reservoir and into the Charles Hansen Supply Canal, then through a headgate on that canal operated by Greeley at its Bellvue Water Treatment Plant, then through Greeley’s pipes and infrastructure and certain new pipes, then through certain wet wells and pumps, then through new pipes and into the Pleasant Valley Pipeline to the Horsetooth Water Treatment Plants; and WHEREAS, staff from the City and the Tri-Districts have negotiated an agreement regarding certain aspects of this Project, as set forth in the form of Agreement attached hereto as Exhibit “A,” which primarily concerns rights and responsibilities of the City and the Tri-Districts related to the design and construction work for this Project and rights and responsibilities of Fort Collins and the Tri-Districts related to the ownership, operation, and maintenance of certain infrastructure and property rights related to the Project. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Manager is hereby authorized to execute an agreement substantially in the form of Exhibit “A”, with such modifications and additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 139 Page 1 of 11 AGREEMENT REGARDING A PROJECT FOR A SUPPLEMENTAL MEANS TO DELIVER HORSETOOTH RESERVOIR WATER TO THE FORT COLLINS WATER TREATMENT FACILITY AND SOLIDER CANYON WATER TREATMENT PLANT (City of Fort Collins and the Tri-Districts) (Project Work – New Infrastructure – New Property Rights) This Agreement is entered into by and between the following Parties: • the City of Fort Collins, Colorado, a home rule municipality (“Fort Collins”); • the East Larimer County Water District, a political subdivision of the State of Colorado (“ELCO”); • the Fort Collins-Loveland Water District, a political subdivision of the State of Colorado (“FCLWD”); and • the North Weld County Water District, a political subdivision of the State of Colorado (“NWCWD”). ELCO, FCLWD, and NWCWD are collectively referred to as the “Tri-Districts.” RECITALS A. Horsetooth Reservoir is a water storage reservoir operated by the Northern Colorado Water Conservancy District (“Northern Water”), which is created by the Soldier Canyon Dam and other infrastructure. The Soldier Canyon Outlet is a pipe and related infrastructure that conveys water from Horsetooth Reservoir under and through Soldier Canyon Dam. B. Water delivered through the Soldier Canyon Outlet is ultimately delivered to, among other locations: Fort Collins’ Water Treatment Facility and the Soldier Canyon Filter Plant, which is owned and operated by the Tri-Districts through the Soldier Canyon Water Treatment Authority (together, “Horsetooth Water Treatment Plants”). C. Northern Water intends to temporarily shut down the Soldier Canyon Outlet during 2020 for approximately 45 to 60 days for inspection, maintenance, and related purposes. This will result in a water supply disruption for Fort Collins and the Tri-Districts and a potential need to convey water in Horsetooth Reservoir (“Horsetooth Water”) to the Horsetooth Water Treatment Plants by a means other than the Soldier Canyon Outlet. D. Fort Collins and the Tri-Districts are likewise interested by developing supplemental infrastructure to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants in order to build redundancy and resiliency into their water treatment and delivery systems. Nothing in this Agreement is intended to affect in any way Fort Collins’ and the Tri-Districts’ rights to the Soldier Canyon Outlet. E. Pursuant to the Agreement Between the City of Fort Collins, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water EXHIBIT A a Packet Pg. 140 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 2 of 11 District Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier Canyon Outlet, dated May 24, 2019 (“Study IGA”), Fort Collins and the Tri-Districts investigated ways to address this water supply disruption and alternative ways to deliver their Horsetooth Water to the Horsetooth Water Treatment Plants. F. Following the completion of the study under the Study IGA, Fort Collins and the Tri- Districts, in consultation with other stakeholders including Northern Water and the City of Greeley (“Greeley”), have concluded that a project involving the use of existing and some new infrastructure (“Project”) would best address these objectives. This Project involves Horsetooth Water being delivered out of Horsetooth Reservoir and into the Charles Hansen Supply Canal, then through a headgate on that canal operated by Greeley at its Bellvue Water Treatment Plant, then through Greeley’s pipes and infrastructure and certain new pipes, then through certain wet wells and pumps, then through new pipes and into the Pleasant Valley Pipeline to the Horsetooth Water Treatment Plants. Exhibit A contains diagrams illustrating the key physical attributes of the Project. G. This Agreement concerns rights and responsibilities of Fort Collins and the Tri-Districts related to the design and construction work for this Project (“Project Work”). Fort Collins will retain a contractor (“Contractor”) to perform the Project Work. Fort Collins currently intends to retain as the Contractor an on-call contractor that Fort Collins already has under contract. If this on-call contractor cannot be utilized, the City will issue a request for proposals to select another Contractor. The selection committee for the Contractor will include City and Tri-Districts personnel. The Tri-Districts will reimburse Fort Collins for their portion of the Project Work as described below. H. This Agreement also concerns rights and responsibilities of Fort Collins and the Tri- Districts related to the ownership, operation, and maintenance of certain infrastructure and property rights related to the Project (defined and described below as “New Infrastructure” and “New Property Rights”). I. The Parties acknowledge that implementing the Project will require various additional agreements. J. As governmental entities, the Parties are authorized into enter into the following intergovernmental agreement pursuant to C.R.S. §29-1-203. AGREEMENT 1. INCORPORATION OF RECITALS. The foregoing recitals are hereby incorporated as if fully restated in their entirety. 2. PROJECT WORK. 2.1. The Scope of the Project Work. The Parties will meet with the Consultant to jointly develop the scope of the Project Work to be completed (“Scope”), which shall include a total cost estimate for the Project Work and a proportional allocation of costs to a Packet Pg. 141 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 3 of 11 each Party based on the amount of the Project Work attributed to each Party’s needs. The Scope shall also identify, in detail, the New Infrastructure and New Property Rights that are required for the Project. Before the Consultant begins the Project Work under the Scope, each of the Parties shall confirm in writing (such as by email or otherwise) that the Scope is acceptable. 2.2. Cooperation with the Project Work. The Tri-Districts agree to cooperate in good faith with Fort Collins and the Consultant for the Project Work, including: developing the Scope; reviewing and providing comments on drafts designs and plans generated by the Consultant; and providing information needed to complete the Project Work to the Consultant, in a timely manner. Fort Collins agrees to work in good faith to ensure that the Tri-Districts have a meaningful opportunity to review, supervise, and provide comments. 2.3. Reimbursement to Fort Collins. Each of the Tri-Districts shall pay Fort Collins for that district’s portion of the Project Work as set forth in the agreed-upon Scope within 45 days of receiving an invoice from Fort Collins for the same. Each of the Tri-Districts shall submit payment to Fort Collins Utilities (attn: Lance Smith and Phil Ladd), 700 Wood Street (P.O. Box 580) Fort Collins, Colorado 80522-0580. 3. NEW INFRASTRUCTURE. The Project will require certain new infrastructure, including pipes, wet wells, and pumps (collectively, “New Infrastructure”), as identified in the Scope. Greeley has, and as will be at forth in a separate agreement, require ownership of any new values or connections on its pipes, which will thus not be New Infrastructure under this Agreement. Northern Water, acting by and through the Pleasant Valley Pipeline Water Activity Enterprise, likewise has, and as will be at forth in a separate agreement, require ownership of any new values or connections on the Pleasant Valley Pipeline, which will this not be New Infrastructure under this Agreement. 3.1. Ownership and Capacity of the New Infrastructure. The Parties shall jointly own the New Infrastructure, with such ownership being: Fort Collins (__%); ELCO (__%); FCLWD (__%); NWCWD (__%). Each Party shall be entitled to use a portion of the New Infrastructure up to its pro-rata ownership. To the extent that a Party does not need to use its full capacity in the New Infrastructure, the other Parties may use such capacity proportionate to their ownership of the New Infrastructure. 3.2. Costs Associated with the New Infrastructure. 3.2.1. Each of the Tri-Districts shall pay Fort Collins for that district’s portion of the initial construction costs associated with the New Infrastructure as part of the Project Work, pursuant to Paragraph 2.3. 3.2.2. The City and the Tri-Districts shall jointly maintain the New Infrastructure during the period when Northern Water temporarily shuts down the Soldier Canyon Outlet during 2020. To the extent that there are monetary costs associated with such maintenance, the City shall pay for such costs and be reimbursed by the Tri- a Packet Pg. 142 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 4 of 11 Districts. Maintenance costs (including any repair and replacement costs) associated with the New Infrastructure shall be shared by the Parties pro-rata based on their ownership identified in Paragraph 3.1. Each of the Tri-Districts shall pay Fort Collins for that district’s portion of the maintenance costs within 45 days of receiving an invoice from Fort Collins for the same. Each of the Tri-Districts shall submit payment to Fort Collins Utilities (attn: Lance Smith and Phil Ladd), 700 Wood Street (P.O. Box 580) Fort Collins, Colorado 80522-0580. 3.2.3. The City shall jointly operate the New Infrastructure during the period when Northern Water temporarily shuts down the Soldier Canyon Outlet during 2020. To the extent that there are monetary costs associated with such operation, the City shall pay for such costs and be reimbursed by the Tri-Districts identified in Paragraph 3.1. Operational costs (including pumping costs) associated with the New Infrastructure shall be allocated based on the amount of Horsetooth Water each Party delivers through the New Infrastructure. Each of the Tri-Districts shall pay Fort Collins for that district’s portion of the maintenance costs within 45 days of receiving an invoice from Fort Collins for the same. Each of the Tri-Districts shall submit payment to Fort Collins Utilities (attn: Lance Smith and Phil Ladd), 700 Wood Street (P.O. Box 580) Fort Collins, Colorado 80522-0580. 4. NEW PROPERTY RIGHTS. In order to construct, operate, and maintain the New Infrastructure, easements and other property rights (“New Property Rights”) will be required, as identified in the Scope. 4.1. Ownership of the New Property Rights. The Parties shall jointly own the New Property Rights, with such ownership being: Fort Collins (__%); ELCO (__%); FCLWD (__%); NWCWD (__%). 4.2. Costs Associated with the New Property Rights. Costs associated with the New Property Rights (including acquisition costs) shared by the Parties pro-rata based on their ownership. 4.3. Reimbursement to Fort Collins. Each of the Tri-Districts shall pay Fort Collins for that district’s portion of the New Property Rights as set forth in the agreed-upon Scope within 45 days of receiving an invoice from Fort Collins for the same. Each of the Tri- Districts shall submit payment to Fort Collins Utilities (attn: Lance Smith and Phil Ladd), 700 Wood Street (P.O. Box 580) Fort Collins, Colorado 80522-0580. 5. OPERATIONS. The Parties desire to generally minimize the use of the New Infrastructure and the associated costs during period when Northern Water temporarily shuts down the Soldier Canyon Outlet during 2020. The Parties shall confer as frequently as necessary before and during that period regarding the timing and amount of use of the New Infrastructure. If that the New Infrastructure needs to be used during period when Northern Water temporarily shuts down the Soldier Canyon Outlet during 2020, the operations and maintenance of the New Infrastructure will be performed jointly by the City and the Tri-Districts through their respective staff and representatives. a Packet Pg. 143 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 5 of 11 6. DECISION-MAKING. Decisions related to the Project Work, New Infrastructure, New Property Rights, and Operations shall operate by consensus among the Parties. To this end, the Parties shall make a good faith effort to reach consensus, propose alternative solutions, and otherwise work to resolve any issues that prevent consensus. The Parties’ actions and decisions shall be guided by the Parties’ individual and collective desire to deliver a reliable supply of high- quality water to the Horsetooth Water Treatment Plants at a reasonable cost to the Parties’ respective ratepayers. 7. FISCAL CONTINGENCY. Notwithstanding any other provisions of this Agreement to the contrary, the obligations of the Parties in fiscal years after the fiscal year of this Agreement shall be subject to appropriation of funds sufficient and intended therefor, with the Party having the sole discretion to determine whether the subject funds are sufficient and intended for use under this Agreement. The failure of a Party to appropriate such funds shall be grounds for termination of this Agreement as to such Party upon written notice pursuant to Paragraph 12. 8. REMEDIES. If any Party fails to comply with the provisions of this Agreement, the other Parties, after providing prompt written notification to the noncomplying Party, and upon the failure of the noncomplying Party to achieve compliance within 35 days following receipt of such notice, may seek all such remedies available under Colorado law. 9. NO THIRD-PARTY BENEFICIARIES. This Agreement is entered into between the Parties for the purposes set forth herein. It is the intent of the Parties that they are the only beneficiaries of this Agreement and the Parties are only benefitted to the extent provided under the express terms and conditions of this Agreement. 10. GOVERNING LAW AND ENFORCEABILITY. This Agreement shall be construed in accordance with the laws of the State of Colorado. The Parties recognize that the constitutions, statutes, and rules and regulations of the State of Colorado and of the United States, as well as the Parties’ respective bylaws, city charters and codes, and rules and regulations, impose certain legal constraints on each Party and that the Parties intend to carry out the terms and conditions of this Agreement subject to those constraints. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 11. WAIVER. A waiver of a breach of any of the provisions of this Agreement shall not constitute a waiver of any subsequent breach of the same or another provision of this Agreement. Nothing in this Agreement shall be construed as any waiver of governmental immunity of the Parties who are governments or any other governmental provisions of State law. Specifically, by entering into this Agreement, neither Party waives the monetary limitations on liability or any other rights, immunities, or protections provided by the Colorado Government Immunity Act, C.R.S. § 24-10-101, et seq., or any successor or similar statutes of the State of Colorado. 12. NOTICES. All notices or other communications hereunder shall be sufficiently given and shall be deemed given (i) when personally delivered; (ii) on the date and at the time of delivery or refusal of acceptance of delivery if delivered or attempted to be delivered by an overnight courier service to the party to whom notice is given at the address specified below; (iii) on the date and at a Packet Pg. 144 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 6 of 11 the time shown on the electronic mail if sent by electronic transmission at the e-mail addresses set forth below and receipt of such electronic mail is acknowledged by the intended recipient thereof; or (iv) after the lapse of five business days following mailing by certified mail-return receipt requested, postage prepaid, addressed as follows: To Fort Collins: City Manager City Hall West 300 LaPorte Avenue; P.O. Box 580 Fort Collins, Colorado 80522-0580 With copy to: Fort Collins City Attorney 300 LaPorte Avenue; P.O. Box 580 Fort Collins, Colorado 80522-0580 E-mail: epotyondy@fcgov.com and: Fort Collins Utilities Attn: Director of Plant Operations 4316 LaPorte Ave. Fort Collins, Colorado 80521 E-mail: mkempton@fcgov.com To ELCO: East Larimer County Water District Attn: District Manager 232 S. Link Lane (Zip Code: 80524) P.O. Box 2044 Fort Collins, Colorado 80522 Telephone: (970) 493-2044 Email: mikes@elcowater.org With copy to: Hasler, Fonfara and Goddard LLP Attn: Joseph H. Fonfara 125 S. Howes Street, 6th Floor (Zip Code: 80521) P.O. Box 2267 Fort Collins, CO 80522 Telephone: (970) 493-5070 E-mail: JoeF@HFGLawfirm.com To FCLWD: Fort Collins-Loveland Water District Attn: District Manager 5150 Snead Drive Fort Collins, Colorado 80525 Telephone: (970) 226-3104 E-mail: chrism@fclwd.com With copy to: Collins Cockrel & Cole, P.C. Attn: Robert G. Cole a Packet Pg. 145 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 7 of 11 390 Union Boulevard, Ste. 400 Denver, Colorado 80228-1556 Telephone: (303) 218-7197 E-mail: rcole@cccfirm.com To NWCWD: North Weld County Water District Attn: District Manager 32825 CR 39 P.O. Box 56 Lucerne, Colorado 80646 Telephone: (970) 356-3020 E-mail: water@nwcwd.org With copy to: Hasler, Fonfara and Goddard LLP Attn: Joseph H. Fonfara 125 S. Howes Street, 6th Floor (Zip Code: 80521) P.O. Box 2267 Fort Collins, CO 80522 Telephone: (970) 493-5070 E-mail: JoeF@HFGLawfirm.com 13. CONSTRUCTION. This Agreement shall be construed according to its fair meaning as it was prepared by the Parties. Headings in this Agreement are for convenience and reference only and shall in no way define, limit, or prescribe the scope or intent of any provision of this Agreement. 14. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the Parties regarding the matters addressed herein. This Agreement binds and benefits the Parties and their respective successors. Covenants or representations not contained in this Agreement regarding the matters addressed herein shall not bind the Parties. 15. REPRESENTATIONS. Each Party represents to the other parties that it has the power and authority to enter into this Agreement and the individual signing below on behalf of that Party has the authority to execute this Agreement on its behalf and legally bind that Party. 16. ASSIGNMENT. No Party may assign any rights or delegate any duties under this Agreement without the written consent of all other Parties. 17. SEVERABILITY. If any provision of this Agreement shall prove to be illegal, invalid, unenforceable or impossible of performance, the remainder of this Agreement shall remain in full force and effect. a Packet Pg. 146 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 8 of 11 CITY OF FORT COLLINS, COLORADO, a home-rule city By: ______________________________________ Date: Darin A. Atteberry, City Manager ATTEST: By: ______________________________________ City Clerk Name: ____________________________________ Title: ____________________________________ APPROVED AS TO LEGAL FORM: By: ______________________________________ Eric R. Potyondy, Assistant City Attorney II a Packet Pg. 147 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 9 of 11 EAST LARIMER COUNTY WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Mike Scheid, General Manager a Packet Pg. 148 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 10 of 11 FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Chris Matkins, General Manager a Packet Pg. 149 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Page 11 of 11 NORTH WELD COUNTY WATER DISTRICT, a political subdivision of the State of Colorado By: ________________________________________ Date: Eric Reckentine, General Manager a Packet Pg. 150 Attachment: Exhibit A (8313 : Horsetooth Reservoir Line Shutdown Consrtuction RESO) Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Jamie Heckman, Compensation and Technology Manager Jenny Lopez Filkins, Legal SUBJECT Resolution 2019-099 Adopting an Updated Process for City Council Evaluation of the Performance of the City Manager, City Attorney and Chief Judge and Establishing Benchmark Cities. EXECUTIVE SUMMARY The purpose of this item is to modify the performance evaluation process for the City Manager, City Attorney and Chief Judge to add flexibility in the timing of performance and salary information and discussions. The item also provides a recommended list of compensation benchmark cities for Council’s direct report employees. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Each year, City Council conducts a performance evaluation of the City Manager, City Attorney and Chief Judge. The current process is outlined in Resolution 2018-098. The proposed modifications to the process are less restrictive in the timing requirements and allow for a separation of performance and salary information and discussions. Additionally, the City Council established an ad hoc committee known as the Direct Reports Compensation Committee (DRCC) to review, discuss and recommend a total compensation strategy to be applied to their direct reports; this strategy include identifying the target market for each position and a recommended list of benchmark cities. The DRCC incorporated a variety of demographic characteristics and high performing criteria to identify the benchmark cities. The DRCC unanimously approved a motion to recommends to the City Council the list of benchmark cities in the. (Exhibit A to Resolution 2019-099) 10 Packet Pg. 151 -1- RESOLUTION 2019-099 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING AN UPDATED PROCESS FOR CITY COUNCIL EVALUATION OF THE PERFORMANCE OF THE CITY MANAGER, CITY ATTORNEY AND CHIEF JUDGE AND ESTABLISHING BENCHMARK CITIES WHEREAS, the City Manager, City Attorney and Chief Judge are appointed by the City Council under the provisions of the City Charter; and WHEREAS, the Chief Judge is appointed for a two-year term, and the City Manager and City Attorney serve terms of indefinite duration; and WHEREAS, the City Council is responsible for managing the performance of all three of these employees and fixing their compensation; and WHEREAS, it is essential that these employees perform their duties with integrity, professionalism and effectiveness; and WHEREAS, the more formal review of these employees’ performance takes place near the end of each calendar year; and WHEREAS, the City Council has by resolution developed and approved a process for conducting the annual reviews, which Council has from time to time updated and revised; and WHEREAS, the City Council established an ad-hoc committee known as the Direct Reports Compensation Committee to review, discuss and recommend a total compensation strategy including benchmark cities, to be applied to its direct report employees; and WHEREAS, the Direct Reports Compensation Committee unanimously approved a motion to recommend to City Council a list of benchmark cities for each of its direct report employees as set forth in the document attached hereto as “Exhibit A;” and WHEREAS, the City Council wishes to supersede all prior resolutions establishing such review procedures, and adopt the procedures set forth below, which revise that process to allow the use of facilitation services to assist with the gathering and exchange of information related to the Annual Reviews. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the annual, formal evaluation of the City Manager, City Attorney and Chief Judge shall be conducted in accordance with the following guidelines: Section 1. Each year and after consulting with the Chief Human Resources Officer, the Mayor shall set a date for an annual review meeting with the Council for the City Manager, City Attorney and the Chief Judge (the “Employees”) as part of the annual, formal evaluation Packet Pg. 152 -2- (“Annual Review”). The City Clerk will include the scheduled date or dates on the Six-Month Calendar for Council agenda planning. Section 2. The Annual Review process shall be conducted as follows: A. Human Resources, if requested, will contract with an appropriately qualified consultant (the “Facilitator”) to assist with gathering and exchange of information related to the Annual Reviews. B. Human Resources will coordinate the development of an evaluation form or set of questions to be used in the evaluation process for each Employee, working with the relevant Employee, the Facilitator, and the Mayor or his or her designee. C. Human Resources will ensure the evaluation form or questions for each Employee are provided to each Councilmember prior to the date of the Employee’s annual review meeting with the Council. D. Each Employee will provide his or her self-evaluation and additional information he or she considers appropriate to the Council prior to the date of the Employee’s annual review meeting with the Council. E. If a Facilitator is requested, the Facilitator will coordinate with Human Resources, the Employees and individual Councilmembers to arrange for and meet with each Councilmember to collect evaluation input for each Employee. If a Facilitator is not requested, Human Resources will coordinate with the Employees and the individual Councilmembers to arrange for and meet with each Councilmember to collect evaluation input for each Employee. F. The Facilitator or Human Resources will prepare and distribute to all Councilmembers and the appropriate Employee a report describing and summarizing the evaluation input obtained prior to such Employee’s annual review meeting with the Council. G. Human Resources, the Facilitator and the Employees may provide to Council at any time any additional information requested by a Councilmember or considered pertinent in relation to the Annual Review process. H. All Councilmembers, irrespective of their evaluation of the Employees, are encouraged to meet individually with the Employees to discuss their performance. I. Prior to any salary or benefits discussions, Human Resources will provide relevant information regarding each of the Employees to the Council and to the appropriate Employee. Packet Pg. 153 -3- J. Each Employee will also provide to Council his or her compensation requests for the ensuing year and any proposed contract revisions prior to the scheduled salary and/or benefits discussion between the Employee and the Council. Section 3. The annual, formal evaluation of the Chief Judge shall be conducted in accordance with the foregoing guidelines, except that, in addition, each year in which the Chief Judge is requesting reappointment, Human Resources or the Facilitator shall provide to Municipal Court prosecutors, defense attorneys who have worked on Municipal Court cases, and attorneys who have appeared at Liquor Licensing Authority meetings an evaluation form for use in evaluating the performance of the Chief Judge. The Chief Judge and the Chief Human Resources Officer shall prepare the form in consultation with the Mayor. Human Resources or the Facilitator shall compile the names of all persons submitting completed forms, together with a composite of the ratings and comments on the completed forms and shall provide this information to Council together with the evaluation input. Section 4. Any change in the compensation of the Employees shall be approved by the Council by ordinance. That ordinance shall be adopted by the Council so that the change in compensation will take effect the first full pay period of the ensuing year. If the Council and either Employee agree upon any revisions to the Employee’s employment contract for the ensuing year, a resolution approving such revision(s) shall be adopted upon first or second reading of the salary ordinance. Section 5. The City Council approves the list of benchmark cities for each of its direct report employees attached hereto as “Exhibit A” to be used for the next two years. On a biennial basis, the City Council or a committee established for such purpose will review and consider whether to revise or update the list of benchmark cities. In making compensation decisions, the Council may consider such other market information as it from time-to-time determines to be appropriate. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 154 -1- RESOLUTION 2019-099 OF THE COUNCIL OF THE CITY OF FORT COLLINS EXHIBIT A – BENCHMARK CITIES City Manager Target Market: National Benchmark Cities: • Anaheim, CA • Ann Arbor, MI • Asheville, NC • Austin, TX* • Boulder, CO • Durham, NC • Eugene, OR* • Greensboro, NC • Hayward, CA • Irving, TX • Mesa, AZ • Naperville, IL* • Oklahoma City, OK • Palo Alto, CA • Plano, TX • Sacramento, CA • Santa Monica, CA • Savannah, GA • Tallahassee, FL • Wilmington, NC *Cities in which the City Attorney reports to the City Manager City Attorney Target Market: National Benchmark Cities: • Anaheim, CA • Ann Arbor, MI • Asheville, NC • Boulder, CO • Durham, NC • Greensboro, NC • Hayward, CA • Irving, TX • Mesa, AZ • Oklahoma City, OK • Palo Alto, CA • Plano, TX • Sacramento, CA • Santa Monica, CA • Savannah, GA • Tallahassee, FL • Wilmington, NC EXHIBIT A a Packet Pg. 155 Attachment: Exhibit A (8310 : Council Employee Evaluation Process RESO) -2- Chief Judge Target Market: Colorado Benchmark Cities: • Arvada • Aurora • Boulder • Greeley • Lakewood • Longmont • Loveland • Thornton • Westminster a Packet Pg. 156 Attachment: Exhibit A (8310 : Council Employee Evaluation Process RESO) October 1, 2019 Staff Report – Community Dashboard Metric Highlight Tom DeMint, Fire Chief Poudre Fire Authority Ron Simms, Planning and Analysis Battalion Chief Staff Report: Poudre Fire Authority Metrics a Packet Pg. 157 Attachment: Poudre Fire Authority Metrics (8343 : Staff Report - Poudre Fire Authority Metrics) Strategic Alignment 2 Staff Report: Poudre Fire Authority Metrics a Packet Pg. 158 Attachment: Poudre Fire Authority Metrics (8343 : Staff Report - Poudre Fire Authority Metrics) Metric Highlight 3 Percent of Time PFA Intercedes before Flashover (contained to room of origin) Staff Report: Poudre Fire Authority Metrics a Packet Pg. 159 Attachment: Poudre Fire Authority Metrics (8343 : Staff Report - Poudre Fire Authority Metrics) Contributors to Success • Community Risk Reduction • Safe Built Environment • Public Education/Fire Safety • Fire Safety Inspections • Fire Behavior/Training • Equipment/Staffing • Quality Response Times Staff Report: Poudre Fire Authority Metrics a Packet Pg. 160 Attachment: Poudre Fire Authority Metrics (8343 : Staff Report - Poudre Fire Authority Metrics) Fire Suppression Outcomes • Improved life safety • Decrease dollar loss due to fire damage • Decrease in water use • Decrease in secondary damage Staff Report: Poudre Fire Authority Metrics a Packet Pg. 161 Attachment: Poudre Fire Authority Metrics (8343 : Staff Report - Poudre Fire Authority Metrics) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Tyler Marr, Deputy Director, Information & Employee Services Carrie M. Daggett, Legal SUBJECT Resolution 2019-100 Regarding Immigration Conditions at the Southern Border of the United States and Its Impact on the Fort Collins Community. EXECUTIVE SUMMARY The purpose of this item is to acknowledge the impact that national events have on the immigrant communities within Fort Collins, state that Fort Collins welcomes those lawfully seeking asylum, and to encourage participation with public safety agencies and in the decennial Census. The resolution also calls upon the United States Congress and the Trump administration to take action to prevent any inhumane treatment at the southern border and to quickly create a sustainable pathway for immigration into the United States, and sets out related follow up actions. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION City Council has been asked at multiple Council meetings by members of the public to make a statement about immigrant communities in Fort Collins and the situation at the southern United States border. Subsequent to the first meeting where Council was asked and gave direction, there have been several iterations of a resolution reviewed by the Legislative Review Committee (LRC). Staff has prepared this version of the Resolution tailored specifically to impacts in Fort Collins surrounding fear of immigrant communities and the potential lack of engagement, particularly in areas of sensitive concern such as public safety and accurate representation through the Decennial Census. In addition to calling for Congressional and Presidential action, the Resolution indicates that the City will add relevant and associated statements into the Legislative Policy Agenda and that City Council will discuss these topics with the City’s Congressional delegation during an upcoming lobbying visit. This Resolution comes after significant community engagement work conducted in 2017 and 2018 around the topic of Community Trust. The attached memorandum that was sent to City Council on September 19 indicates where examples of continued work has been done in the time since the formal Community Trust Initiative concluded. PUBLIC OUTREACH Significant public outreach was conducted as part of the Community Trust Initiative. 11 Packet Pg. 162 Agenda Item 11 Item # 11 Page 2 ATTACHMENTS 1. Memo Updating on Community Trust, September 19, 2019 (PDF) 2. Powerpoint presentation (PDF) 11 Packet Pg. 163 ATTACHMENT 1 11.1 Packet Pg. 164 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 165 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 166 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 167 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 168 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 169 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 170 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 171 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 172 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 173 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 174 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 175 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 176 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 177 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 178 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) 11.1 Packet Pg. 179 Attachment: Memo Updating on Community Trust, September 19, 2019 (8329 : Immigration Resolution) October 1, 2019 Immigration Resolution ATTACHMENT 2 11.2 Packet Pg. 180 Attachment: Powerpoint presentation (8329 : Immigration Resolution) Process that Led to Resolution 2 Public Comment LRC Discussion on Resolution/Public Dialogue Conversation w/ Center for Public Deliberation Further LRC/LPT discussion Staff Resolution recommendation 11.2 Packet Pg. 181 Attachment: Powerpoint presentation (8329 : Immigration Resolution) Key Components of Resolution 1. Addresses engagement of immigrant communities 2. Advocates for immigration reform at the federal level 3. Legislative Policy Agenda language for LRC consideration 4. States that Council will engage federal elected officials about this issue 3 11.2 Packet Pg. 182 Attachment: Powerpoint presentation (8329 : Immigration Resolution) Next Steps • Legislative Policy Agenda work underway • Continued relationship building around community trust • Council lobbying trip to Washington in October 4 11.2 Packet Pg. 183 Attachment: Powerpoint presentation (8329 : Immigration Resolution) -1- RESOLUTION 2019-100 OF THE COUNCIL OF THE CITY OF FORT COLLINS REGARDING IMMIGRATION CONDITIONS AT THE SOUTHERN BORDER OF THE UNITED STATES AND ITS IMPACT ON THE FORT COLLINS COMMUNITY WHEREAS, Fort Collins welcomes and celebrates immigrants and their role in our City’s history and in the greater fabric and history of the United States; and WHEREAS, in 2018 and the first part of 2019, thousands of people, including families with children, asked for asylum at the United States’ border with Mexico; and WHEREAS, recent events at the border between the United States and Mexico highlight potential humanitarian issues – particularly concerning children being separated from their families and the conditions in which they are being held in separation; and WHEREAS, the national focus on this topic is not inseparable from Fort Collins immigrant communities, and reports on this situation have caused fear among communities living in Fort Collins; and WHEREAS, this fear manifests itself in a variety of ways, but of importance to the City is a fear of engaging with government authorities; and WHEREAS, the City is concerned that this fear of the government could discourage people from engaging with public safety agencies, and could prevent the Decennial Census from obtaining an accurate count of people living in Fort Collins, putting at risk accurate representation in Congress and in the Colorado General Assembly, as well as federal funding; and WHEREAS, understanding this fear and its impact on the community, the City Council wants to reiterate that this City is committed to building trust among all our residents, particularly our immigrant communities, and that we believe their contributions and presence in this community make for a stronger City and WHEREAS, the City recognizes that our community alone cannot solve the national issues which are inherently causing many of these challenges at a local level. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council wishes to foster a Fort Collins community that is welcoming to those lawfully seeking asylum in the United States and wants residents to feel secure in their homes. Packet Pg. 184 -2- Section 2. That the City Council encourages all local residents to report crimes and come forward as victims and witnesses of crimes, and to participate in the Decennial Census, regardless of their race, ethnicity, national origin or immigration status. Section 3. That the City Council calls upon President Trump and his administration, as well as the United States Congress, to act immediately to prevent inhumane treatment of persons, especially minors, at the southern border, and implores the administration to quickly reunify immigrant families through whatever means reasonably possible. Section 4. That the City Council urges the President and Congress, particularly the leadership of the House and Senate, to create a sustainable pathway for immigration into the United States, especially for those who fear for their lives or their safety. Section 5. That the City Council directs the City Manager to include measures consistent with this Resolution in the City’s Legislative Policy Agenda to be presented to the Legislative Review Committee for consideration before the end of 2019. Section 6. That it is the intent of the City Council that those members of Council participating in upcoming meetings with members of the Colorado Congressional delegation urge those members of Congress to take action as described herein. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 185 Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Josh Birks, Economic Health Director John Duval, Legal SUBJECT Items Relating to the Northfield Metro District Nos. 1 through 3 Consolidated Service Plan. EXECUTIVE SUMMARY A. Resolution 2019-101 Reconsidering, Rehearing and Approving the Consolidated Service Plan for Northfield Metropolitan District Nos. 1-3. B. Resolution 2019-102 Making Findings, Determinations and Conclusions Denying on Rehearing the Consolidated Service Plan for Northfield Metropolitan District Nos. 1-3. The purpose of this item is for City Council to consider on rehearing approval of the Northfield Metropolitan District Nos. 1 through 3 Consolidated Service Plan (the “Service Plan”) or, alternatively, to deny the Service Plan on rehearing. Resolution 2019-101 is what Council should adopt to approve the Service Plan. Resolution 2019-102 is what Council should adopt to deny the Service Plan. If Resolution 2019-102 is adopted to deny the Service Plan, Council should also decide in Section 5 of the Resolution what its reasons are for denial on the basis of non-compliance with the Council’s current Metro District Policy (Policy). The Policy contemplates that only Service Plans that provide “extraordinary public benefits that align with the goals and objectives of the City” are favored for approval. The developer of the proposed Northfield Development has submitted the Service Plan to support the proposed development of approximately 56 acres located north of Vine Street on the west side of Lindenmeier Road/Lemay Avenue (southeast of the Lake Canal and north of the to-be designated historic Alta Vista neighborhood). The development is anticipated to include 442 residential units and a mixed-use center that will offer light commercial use on the first floor, residential for-rent units on the second floor, and small amenities open to the public. The project has committed to provide approximately 15 percent for-sale affordable housing units. A Mill Levy Cap of 50.00 mills has been proposed under the Service Plan to support the project. As per the Council’s Metro District Policy, proceedings for a public hearing for a Metro District Service Plan public hearing are as follows: 1. Announcement of item 2. Consideration of any procedural issues 3. Explanation of the application by City staff 4. Presentation by the applicant (suggested time: 15 minutes) 5. Public testimony regarding the application 6. Rebuttal testimony by the applicant (suggested time: 10 minutes) 7. Councilmember questions of City staff and the applicant 8. Motion, discussion and vote by City Council. The public hearing for this Service Plan was previously noticed in accordance with Council’s Metro District Policy to be conducted at Council’s August 20, 2019, meeting. However, Council voted at that meeting, as 12 Packet Pg. 186 Agenda Item 12 Item # 12 Page 2 authorized in Section 2.c. of the Council’s Rules of Procedure, to continue this matter to the Council’s next regular meeting, which is this September 3, 2019, meeting. The applicant mailed on August 22, 2019, notice of this continuance to the fee-title owners of property within the proposed Districts and published this notice in the Coloradoan on August 24, 2019. At its September 3, 2019 meeting, the Council adopted a motion to again continue the hearing, rescheduling the hearing for the September 17, 2019 meeting. At its September 17, 2019, meeting, City Council voted to deny approval of the Service Plan. However, at its September 24, 2019, meeting, City Council voted to reconsider and re-hear the application, which was scheduled for this October 1, 2019 meeting. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION NOTE: Highlight indicates updated public benefits information from the latest version of the submitted Service Plan. City Council raised several questions as a result of the motion to reconsider the Service Plan. Answers to these questions will be provided in a read-before memo on October 1, 2019. Council’s Discretion under its Policy The Council’s Metro District Policy contemplates that Council will consider favorably those metro district service plans that will “deliver extraordinary public benefits.” However, the Policy also provides that approval of service plans is within the Council’s sole discretion. In the exercise of that discretion, the Council may reject, approve, or conditionally approve service plans on a case-by-case basis. The Council therefore retains under the Policy the full authority to determine whether the proposed “extraordinary public benefits” proposed under a particular service plan are sufficient. Project Overview Landmark Homes is proposing a residential community situated within walking distance of the City’s Old Town. The Planned Development incorporates goals of the following plans: City Plan, Transportation Master Plan, Master Street Plan, Nature in the City Strategic Plan, Natural Areas Master Plan, Paved Recreational Trail Master Plan, Northside Neighborhoods Plan, Pedestrian Plan, and Bicycle Master Plan. The proposed Northfield Metro District Nos. 1 through 3 (the “Metro Districts”) will support 56 acres of planned development located north of Vine Street on the west side of Lindenmeier Road/Lemay Avenue (southeast of the Lake Canal and north of the to-be designated historic Alta Vista neighborhood). (Attachment 1) The project anticipates constructing: • Approximately 442 residential units (a mix of single-family and multi-family). • Minimum of 14.7% affordable (65 units) either for-sale or for-rent units. • The affordable for-sale units will be offered at an AMI of 80% or lower. The affordable for-rent units will be offered at rents at or below 80% of Area Median Income (“AMI”) with the average of all rents at or below 60% AMI. • The remaining housing units in the project are expected to be priced in an attainable range, considered by other cities to be between 80% and 120% of AMI. 12 Packet Pg. 187 Agenda Item 12 Item # 12 Page 3 Table 1 Proposed Unit Pricing Residential Units (2019-2025) Housing Type # Units Price Brownstones 139 $388,518 Flats 180 359,040 Value Condo 16 316,200 Stacked Condo 40 306,714 Deed Restricted Condo 65 265,200 Studio Rental 2 200,000 Total/Average 442 $347,504 • A mixed-use center that will offer light commercial use on the first floor, residential for-rent units on the second floor, and small amenities open to the public. Table 2 Commercial Building Space Pricing Commercial (2022) Type Sq Ft Price Retail 2,679 $225 Total $602,775 • An enhanced setback from the Lake Canal Wetlands to further protect them from new development; and • On-site Regional Trail as well as the off- site pedestrian connection for the northeastern portion up to the intersection at Lemay Avenue and Conifer Street. Council Finance Review Follow-Up On July 15, 2019, the Council Finance Committee reviewed the proposed Consolidated Service Plan for Metro Districts. The Committee requested additional information on a few items: • Affordable Housing - How does the City ensure the Metro District will provide affordable housing? Below are some of the manners in which housing could be delivered, however, the list is not exhaustive: o Traditional Delivery - Existing affordable housing providers could construct units within the district using their traditional funding approaches. These units would need to be rented or sold at a price point that complies with the City’s policy. The monthly cost to the user would be no different within the district than outside the district. Therefore, the housing provider would need to identify and obtain additional subsidy to cover the resulting lower sales price for a unit that will cost the same inside and outside of a District. o Land Trust - A developer could elect to transfer or sell affordable housing lots to a Land Trust operating in the City. The Land Trust, typically a non-profit, would then reduce the tax burden to the occupant by removing 25 to 30 percent of property value associated with land. In addition, a Land Trust would also have to price units following the same principles - meaning that the net cost to the occupant would be consistent inside and outside a district. o Land Bank - A developer could elect to sell a portion of their property to the City’s land bank program at a market or discounted rate. These units would need to be rented or sold at a price point that complies with the City’s policy. The monthly cost to the user would be no different within the district than outside the district. 12 Packet Pg. 188 Agenda Item 12 Item # 12 Page 4 The Economic Health Office understands the concern with the reservation of lots for affordable housing. Staff is looking into options for ensuring the building of affordable housing units and whether reservations or some alternative method will better achieve this goal. • How will the solar in the Metro District be managed? o Utilities is working on the analysis and management of solar within the system. As part of the broader system, staff is coordinating a work plan and schedule for the development of a distributed energy resources roadmap with the Energy Board and community stakeholders. The work plan will maintain alignment with proposed updates to the Energy Policy, Climate Action Plan Framework and Platte River Integrated Resources Plan. o Utilities is planning to incorporate “smart” inverter capabilities into our solar interconnection guidelines (for all installations). These capabilities will initially enable Utilities to prescribe settings, which will limit potential negative impacts of too much solar in specific areas. In the future, the inverters may allow Utilities to dynamically control settings which will support the electric distribution system. On September 3, 2019, the Council requested additional information on a few items: • Are Metro District accelerating the pace of development in Fort Collins? o The demand for housing in Fort Collins, specifically for attainable housing units, exists with or without a Metro District. A single Metro District itself will have minimal impact on the pace of development, especially in an area where development would naturally occur based on the demand for housing. o Northfield is building at a density of eight units per acre, lower than the allowed density of 12 units per acre. o Compared to a “code built”, non-Metro District development, the Northfield Metro District is anticipated to have a lower environmental impact based on the environmental public benefits they will implement, thereby helping the City reach its CAP goals. • Will including amenities such as a pool impact the price of properties across the community? o Northfield is including a pool and clubhouse in their development, however, these amenities are not unique to developments in Fort Collins and we don’t believe it will have an impact to overall housing prices in the surrounding neighborhood or City housing prices on the whole. Service Plan Overview Under Landmark Homes’ proposed Service Plan, the Metro Districts would be used to construct critical public infrastructure and other site costs reducing the overall development costs. Staff has reviewed the Service Plan and determined that it includes all the information required by Section 32- 1-202(2) of the Colorado Revised Statutes. The required information is: 12 Packet Pg. 189 Agenda Item 12 Item # 12 Page 5 (a) A description of the Districts’ proposed services; (b) A financial plan showing how the proposed services are to be financed, including the proposed operating revenue derived from property taxes for the first budget year of the Districts; (c) All proposed indebtedness for the Districts displayed together with a schedule indicating the year or years in which the debt is scheduled to be issued; (d) A preliminary engineering or architectural survey showing how the proposed services are to be provided; (e) A map of the proposed Districts’ boundaries and an estimate of the population and valuation for assessment of the proposed Districts; (f) A general description of the facilities to be constructed and the standards of such construction, including a statement of how the facility and service standards of the proposed Districts will be compatible with the City’s facility and service standards; (g) A general description of the estimated cost of acquiring land, engineering services, legal services, administrative services, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major expenses related to the organization and initial operation of the Districts; and (f) A description of any arrangement or proposed agreement with any political subdivision for the performance of any services between the proposed Districts and such other political subdivision, and, if the form contract to be used is available, it shall be attached to the Service Plan. The Service Plan calls for the creation of three Metro Districts working collaboratively to deliver the proposed Northfield development. The phased development is anticipated to occur over the next nine plus years and support an estimated population of 1,139. A few highlights about the proposed Service Plan, include: • Assessed Value - Estimated to be approximately $13.3 million in 2029 at full build-out • Aggregate Mill Levy - 50 mills, subject to Gallagher Adjustments • Debt Mill Levy - 40 mills, may not be levied until an approved development plan or intergovernmental agreement has been executed that delivers the pledged public benefits • Operating Mill Levy - Up to an additional 10 mills (aggregate mill levy 50 mills) to fund several on-going operations, such as but not limited to: (a) a non-potable irrigation system, and (b) road infrastructure. Once a District imposes a Debt Mill Levy, such District’s Operating Mill Levy cannot exceed ten (10) mills at any point. • Maximum Debt Authorization - Anticipated to be approximately $16 million to cover a portion of the estimated $30 million in project costs • Regional Mill Levy - The Regional Mill Levy of 5 mills shall not be counted against the Aggregate Mill Levy Maximum Public Improvements The Service Plan anticipates using the Debt Mill Levy to support the issuance of bonds in the maximum amount of $16 million to fund all or a portion of the following $30 million in public improvements (details available in Exhibits D and G of the Service Plan): • Earthwork and Grading - Approximately $5.4 million in earthwork and site preparation costs associated with the proposed project. • Roadway Improvements - Approximately $6.4 million in total costs to construct asphalt infrastructure for streets and parking on the project, including Suniga arterial (costed at $2.5M). • Potable Water Improvements - Approximately $0.6 million in costs to construct potable water infrastructure supporting the project. 12 Packet Pg. 190 Agenda Item 12 Item # 12 Page 6 • Sanitary Sewer Improvement - Approximately $1.3 million constructing the sanitary sewer infrastructure, including upsizing, both on-site ($0.7M) and off-site ($0.6M) for the project • Storm Sewer Improvements - Approximately $1.9 million in costs to construct the main storm sewer system and infrastructure for the project. • Open Space/Landscaping - Approximately $4.0 million in costs for Regional Trail construction, neighborhood park development, development of clubhouse/pool, and other landscaping • Miscellaneous / Amenity - Approximately $5.5 million in miscellaneous costs associated with the project, such as engineering, inspection, and administrative costs, plus a 20% contingency estimate of $5.1 million. The subtotal for basic costs associated with public improvements through the Metro Districts is approximately $20.3 million (previously $19.6); non-basic costs are approximately $9.8 million (previously $10.5) which brings the project to an approximate total of $30.1 million. Public Benefits As required by the City Council’s current Metro District Policy (Metro District Policy), the Service Plan will deliver several extraordinary development outcomes that support several public benefits. A general list of benefits and, where available, their estimated value is described below (details in Exhibit G of the Service Plan): 12 Packet Pg. 191 Agenda Item 12 Item # 12 Page 7 Table 3 Northfield Metro District Public Benefits Evaluation 12 Packet Pg. 192 Agenda Item 12 Item # 12 Page 8 Affordable Housing - The financing and reimbursement options created by the Metropolitan Districts will enable the Northfield project to deliver a minimum of 65 units or 14.7% of the total project at affordable rates. These units will be delivered under the following guidelines: o A minimum of 65 (14.7%) for-sale affordable units offered at a price affordable of 80% AMI and/or for- rent affordable units offered at rents at or below 80% AMI with the average of all rents at or below 60% AMI. o Landmark has a signed LOI with Mercy Housing, a very well established affordable, for-rent multifamily builder that has projects around the nation. o Enforceability: The affordable units shall be secured through one of the mechanisms described below (or through any other mechanism agreed upon in writing between the City and the Developer) prior to receipt from the City of a building permit for more than fifty percent (50%) of the total number of dwelling units authorized under the approved development plan. ➢ Construction of the affordable units by the Developer, but only those Developer-constructed affordable units for which the City has issued a certificate of occupancy will be counted toward the satisfaction of the total number of affordable units needed. ➢ Sale of lots for the affordable units by the Developer to a non-profit or for-profit builder who will contractually guarantee to the City that the builder will only build affordable units on the those lots. At the time such sale is closed and the contractual guarantee has been provided to the City to its satisfaction, the number of housing units approved for construction on such lots shall count toward the number of affordable units needed. o Units will be deed restricted for at least 20 years. • Environmental Sustainability o Energy Conservation  Solar - Northfield plans to include solar panels on all units. These buildings will feature a photovoltaic system that will produce at least 1kW of power for each unit. Thus, a 12-unit building will have roughly 12kW of solar panels. (previously, solar only on the condo units.)  EV Chargers - Northfield will also deliver a 240V outlet in every garage to provide a place for the electric vehicle fast-charging stations and further encourage residents to drive eco-friendly cars.  LEED Gold Certification - Northfield has committed to construct all 442 units, including the affordable housing units, to meet LEED Gold certification. LEED measures nine key areas that ensure the entire community, beyond just the individual homes, are meeting and exceeding green materials and practices. These nines areas are sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, location and linkages, awareness and education, innovation in design, and regional priority. Northfield has engaged the environmental group The Green Insight to help achieve this certification and will be responsible for the inspections throughout the building process to ensure Northfield receives the LEED Gold certifications.  HERS Rating Commitment - All the homes will commit to HERS ratings ranging from 35 to 49 (previously 49 to 55) compared to the average Fort Collins HERS ratings of new home ranging from 58 to 62. Increased energy efficient building materials and methods were considered to increase the energy efficiency of the homes. According to the HERS index, these homes in Northfield will be 51-65% (previously 45-51%) more energy efficient than a standard new home and 81-95% (previously 75-81%) more efficient than the average resale home. The HERS ratings are incorporated into the LEED scores and are part of the entire LEED Gold certification and standard. Landmark will contract with a green energy consultant to ensure the buildings are constructed according to energy efficient standards and that official HERS scores are certified upon completion.  Energy Recovery Ventilator (ERV) Systems – – An ERV system will also be installed on every market rate unit to improve air quality inside the homes. When homes get very tight due to efficient construction techniques, the air inside can get stagnant. The ERV system helps bring in fresh outside air and condition it to the inside temperature through an energy efficient recovery core. 12 Packet Pg. 193 Agenda Item 12 Item # 12 Page 9 o Environmental Conservation - The project provides an enhanced setback from the Lake Canal Wetlands to further protect them from new development. The connections over Lake Canal will be constructed with low impact box culverts and abide by and exceed Army Core of Engineers standards for historic protected wetlands. Landscaped areas will focus on low-water usage designs. Initial hydro- zone calculations indicate Northfield will use 6.87 (previously 7.63) gallons of water per square foot, well below the City’s limit of 15 gallons of water per square foot. • Off-Site Sewer Improvements - Northfield plans to replace and upsize the sewer line from Vine Drive, around Alta Vista, and along a portion of Lemay Avenue. It is not clear at this early stage whether the developer or the district will contract for construction of the upsizing, but they will seek reimbursement from the city for the upsized portion. • Regional Trail - Rather than simply designating an on-site easement for the future trail construction by the City, Northfield plans to finance and deliver the on-site Regional Trail as well as the off-site pedestrian connection for the northeastern portion up to the intersection at Lemay Avenue and Conifer Street. • Community Gateway - Northfield will promote the City’s objective of preserving and enhancing historic resources. The southeastern edge of Northfield borders the to-be-designated historic Alta Vista neighborhood. To blend the transition to new development and pay homage to the neighborhood’s history, Northfield will feature an Interpretive Historical Park and Gateway Features bordering Alta Vista. These additions were developed in collaboration with neighbors in the Alta Vista neighborhood and would provide an extraordinary benefit to the City as a whole. • Economic Health Outcomes - Northfield is located within walking and/or biking distance to some of the largest employment hubs in the City, including City of Fort Collins Municipal Offices, Colorado State University, Woodward, and New Belgium Brewing. Northfield's proximity to these hubs and affordable and its attainable price points set the project apart from other recent residential developments in Fort Collins. Through Northfield, the City will gain high-quality, attainable housing near the City’s economic and cultural core, helping reduce congestion in the City and provide workforce housing. Policy Comparison The conceptual use of a Metro District at Northfield complies with the City’s existing policy. Northfield Proposal Mulberry Waterfield Montava Current Policy Mill Levy Caps 50 Mills 50 Mills 50 Mills 60 Mills 50 Mills Basic Infrastructure Partially Partially Partially Partially To enable public benefit Eminent Domain Will Comply Will Comply Will Comply Will Comply Prohibited Debt Limitation Will Comply Will Comply Will Comply Will Comply 100% of Capacity Dissolution Limit Ongoing for O&M Ongoing for O&M Will Comply Will Comply 40 years (end user refunding exception) Citizen Control Will Comply Will Comply Will Comply Will Comply As early as possible Multiple Districts Yes Yes Yes Yes Projected over an extended period Commercial/ Residential Ratio Residential and Commercial Residential and Commercial 100% Residential Mixed Use N/A Performance Assurances The proposed Service Plan prohibits the issuance of any debt or imposition of the debt mill levy or fees to pay debt unless and until the delivery of the Public Benefits are secured for each development phase of the project in a manner that is approved by City Council, as outlined in the February 2019 updated City Metro District Policy. This requirement can be satisfied by one or both of the following methods, as applicable: • Intergovernmental Agreement - For any of the Public Benefits to be provided by one or more of the Metro Districts, each such District must enter into an intergovernmental agreement with the City agreeing to provide those Public Benefits as a legally enforceable multiple-fiscal year obligation of the District under 12 Packet Pg. 194 Agenda Item 12 Item # 12 Page 10 TABOR or by securing performance of that obligation with a surety bond, letter of credit or other security acceptable to the City and all such intergovernmental agreements must be approved by the City Council by resolution; • Approved Development Plan - For any of the Public Benefits to be provided by one or more Developers of the Planned Development, each such Developer must enter into a development agreement with the City under the Developer’s applicable Approved Development Plan, which agreement must legally obligate the Developer to provide those Public Benefits before the City is required to issue building permits and/or certificates of occupancy for structures to be built under the Approved Development Plan for that phase of the Planned Development or to secure such obligations Public Benefits and Triple Bottom Line The Metro District Policy supports the formation of a metro district regardless of development type when a District delivers extraordinary public benefits. The public benefits should be: (1) aligned with the goals and objectives of the City whether such extraordinary public benefits are provided by the metro district or by the entity developing the metro district because metro districts exist to provide public improvements; and (2) not be practically provided by the City or an existing public entity, within a reasonable time and on a comparable basis. The Service Plan for the Northfield Project delivers several proposed policy outcomes. (Attachment 3) Triple Bottom Line - Scan An interdisciplinary staff team prepared a Triple Bottom Line Scan (TBL Scan) of the proposed Service Plan. (Attachment 4) The net analysis is generally neutral to slightly positive. Note that the TBL Scan is not for the development itself, but for the difference between the Metro District benefits and a non-Metro District development. The highlights are provided below: • Economic - The proposed affordable housing is expected to have a positive impact on retaining and attracting talent to strengthen our local labor force for employers. The pricing of the remaining homes at 80-120% of AMI meets the community’s needs for housing at that income level. Northfield is located within walking and/or biking distance to some of the largest employment hubs. • Environmental - Some benefit is expected from the proposed solar, but overall the proposed environmental public benefits were interpreted as weak by staff under the current proposal. Additional clarity is needed to assess any improved benefit. However, the applicant completed additional HERs testing after the TBL Scan was completed, and the positive results of the testing are not included in the Triple Bottom Line Report. • Social - This area is expected to have the most positive impact due to the commitments to affordable housing. Financial Assessment Utilizing the District’s Financial Plan, the City reviewed the Financial Plan in partnership with Economic & Planning Systems. (Attachment 5) The review concluded the following: • The proposed mill levies are in line with the City’s policy. • The market values used in the public revenue estimates are reasonable. • EPS expressed concern about residential absorption of Northfield in the context of other new North College developments: Waterfield, Water’s Edge, and Montava. • EPS found it difficult to assess if there would be “extraordinary benefits” with the following: clubhouse and swimming pool, allowed density/more open space, and increased landscaped area. Basic Infrastructure and Public Benefit The Metro District Policy allows a metro district to fund “basic infrastructure”, that which is typically expected to be provided by a developer (both in type and magnitude), when the inclusion of “basic” infrastructure offsets 12 Packet Pg. 195 Agenda Item 12 Item # 12 Page 11 higher costs associated with extraordinary development outcomes that cannot directly be provided by a metro district (Defined in Exhibit A of the Metro District Policy, e.g., rooftop solar, affordable housing, etc.). The Developer has identified an estimated $18.7 million in public benefits which are outlined in Table 3. After reviewing the Service Plan, estimated public benefits, and the Maximum Debt Authorization of $16 million, staff recommends approval of the Service Plan. Estimated Property Taxes Table 4 Annual Tax Levied on Residential Property with $300,000 Actual Value within the District (Assuming Maximum District Mill Levy) Taxing Entity Mill Levies (2018) Annual tax levied Northfield Metropolitan District No. 50.00 $1,080.00 Poudre R-1 General Fund 40.30 $870.48 Larimer County 22.40 $483.90 Poudre R-1 Bond Payment 12.33 $266.33 City of Fort Collins 9.80 $211.62 Poudre River Public Library District 3.00 $64.80 Health District of Northern Larimer County 2.17 $46.81 Northern Colorado Water Cons. District 1.00 $21.60 Larimer County Pest Control District 0.14 $3.07 TOTAL: 141.14 $3,048.61 Applicant Supplied Materials The applicant requesting consideration of the Service Plan has submitted a PowerPoint presentation for Council’s review. (Attachment 8) CITY FINANCIAL IMPACTS The proposed Service Plan will not have an impact on the City’s financials. The applicant has paid the fees required under the City’s Metro District Policy, which fees are designed to offset the cost of staff and outside consultant and legal review. In addition, the proposed Service Plan includes a requirement that the following notice be included in all debt issued by the Districts: “By acceptance of this instrument, the owner of this Debt agrees and consents to all of the limitations with respect to the payment of the principal and interest on this Debt contained herein, in the resolution of the District authorizing the issuance of this Debt and in the Service Plan of the District. This Debt is not and cannot be a Debt of the City of Fort Collins.” ATTACHMENTS 1. Vicinity Map (PDF) 2. Comparison of September 17 Service Plan with Current Version (PDF) 3. Triple Bottom Line Summary (PDF) 4. EPS Northfield Metro District Review (PDF) 5. Combined Vicinity Map (PDF) 6. Northfield September 25, 2019 PowerPoint Presentation (PDF) 7. PowerPoint Presentation (PDF) 12 Packet Pg. 196 PROPOSED NORTHFIELD METRO DISTRICT N W E S DRAWN BY DATE SCALE (H) HDS PROJ SHEET OF NORTHFIELD VICINITY MAP 04/30/2019 1" = 1000' KRB 18-1000-00 EXHIBIT C 1 1 0 SCALE: 1" = 1000' 500 1000 ATTACHMENT 1 12.1 Packet Pg. 197 Attachment: Vicinity Map (8335 : Northfield Metro District Service Plan) CONSOLIDATED SERVICE PLAN FOR NORTHFIELD METROPOLITAN DISTRICT NOS. 1-3 CITY OF FORT COLLINS, COLORADO Prepared by: WHITE BEAR ANKELE TANAKA & WALDRON 2154 E. Commons Ave., Suite 2000 Centennial, CO 80122 Submitted On: August 7, 2019 Approved on: [__________________] ATTACHMENT 2 12.2 Packet Pg. 198 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) i TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1 A. Purpose and Intent................................................................................................... 1 B. Need for the Districts. ............................................................................................. 1 C. Objective of the City Regarding Districts’ Service Plan. ....................................... 2 D. City Approvals. ....................................................................................................... 2 II. DEFINITIONS .................................................................................................................... 2 III. BOUNDARIES AND LOCATION .................................................................................... 5 IV. DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC BENEFITS & ASSESSED VALUATION ................................................................................................ 6 A. Project and Planned Development. ......................................................................... 6 B. Public Benefits. ....................................................................................................... 6 C. Assessed Valuation. ................................................................................................ 8 V. INCLUSION OF LAND IN THE SERVICE AREA ......................................................... 8 VI. DISTRICT GOVERNANCE .............................................................................................. 8 VII. AUTHORIZED AND PROHIBITED POWERS ............................................................... 9 A. General Grant of Powers. ........................................................................................ 9 B. Prohibited Improvements and Services and other Restrictions and Limitations. ... 9 1. Eminent Domain Restriction....................................................................... 9 2. Fee Limitation ............................................................................................. 9 3. Operations and Maintenance..................................................................... 10 4. Fire Protection Restriction ........................................................................ 10 5. Public Safety Services Restriction ............................................................ 10 6. Grants from Governmental Agencies Restriction ..................................... 10 7. Golf Course Construction Restriction ....................................................... 10 8. Television Relay and Translation Restriction ........................................... 10 9. Potable Water and Wastewater Treatment Facilities ................................ 11 10. Sales and Use Tax Exemption Limitation ................................................ 11 11. Sub-district Restriction ............................................................................. 11 12. Privately Placed Debt Limitation .............................................................. 11 13. Special Assessments ................................................................................. 11 VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS ............................................. 12 A. Development Standards. ....................................................................................... 12 B. Contracting. ........................................................................................................... 13 12.2 Packet Pg. 199 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) ii C. Land Acquisition and Conveyance. ...................................................................... 13 D. Equal Employment and Discrimination. ............................................................... 13 IX. FINANCIAL PLAN/PROPOSED DEBT......................................................................... 14 A. Financial Plan........................................................................................................ 14 B. Mill Levies. ........................................................................................................... 14 1. Aggregate Mill Levy Maximum ............................................................... 14 2. Regional Mill Levy Not Included in Other Mill Levies ........................... 14 3. Operating Mill Levy ................................................................................. 15 4. Gallagher Adjustments.............................................................................. 15 5. Excessive Mill Levy Pledges .................................................................... 15 6. Refunding Debt ......................................................................................... 15 7. Maximum Debt Authorization .................................................................. 15 C. Maximum Voted Interest Rate and Underwriting Discount. ................................ 16 D. Interest Rate and Underwriting Discount Certification. ....................................... 16 E. Disclosure to Purchasers. ...................................................................................... 16 F. External Financial Advisor. .................................................................................. 16 G. Disclosure to Debt Purchasers. ............................................................................. 17 H. Security for Debt. .................................................................................................. 17 I. TABOR Compliance. ............................................................................................ 17 J. Districts’ Operating Costs. .................................................................................... 17 X. REGIONAL IMPROVEMENTS...................................................................................... 18 A. Regional Mill Levy Authority. ............................................................................. 18 B. Regional Mill Levy Imposition. ............................................................................ 18 C. City Notice Regarding Regional Improvements. .................................................. 18 D. Regional Improvements Authorized Under Service Plan. .................................... 18 E. Expenditure of Regional Mil Levy Revenues. ...................................................... 19 1. Intergovernmental Agreement .................................................................. 19 2. No Intergovernmental Agreement ............................................................ 19 F. Regional Mill Levy Term. .................................................................................... 19 G. Completion of Regional Improvements. ............................................................... 19 H. City Authority to Require Imposition. .................................................................. 19 I. Regional Mill Levy Not Included in Other Mill Levies. ...................................... 19 J. Gallagher Adjustment. .......................................................................................... 19 XI. CITY FEES ....................................................................................................................... 20 12.2 Packet Pg. 200 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) iii XII. BANKRUPTCY LIMITATIONS ..................................................................................... 20 XIII. ANNUAL REPORTS AND BOARD MEETINGS ......................................................... 20 A. General. ................................................................................................................. 20 B. Board Meetings. .................................................................................................... 20 C. Report Requirements. ........................................................................................... 20 1. Narrative ................................................................................................... 20 2. Financial Statements ................................................................................. 21 3. Capital Expenditures ................................................................................. 21 4. Financial Obligations ................................................................................ 21 5. Board Contact Information ....................................................................... 21 6. Other Information ..................................................................................... 21 D. Reporting of Significant Events. ........................................................................... 21 E. Failure to Submit................................................................................................... 22 XIV. SERVICE PLAN AMENDMENTS ................................................................................. 22 XV. MATERIAL MODIFICATIONS ..................................................................................... 22 XVI. DISSOLUTION ................................................................................................................ 23 XVII. SANCTIONS .................................................................................................................... 23 XVIII. INTERGOVERNMENTAL AGREEMENT WITH CITY .............................................. 24 XIX. CONCLUSION ................................................................................................................. 24 XX. RESOLUTION OF APPROVAL ..................................................................................... 24 12.2 Packet Pg. 201 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) iv EXHIBITS EXHIBIT A-1 Legal Description of District No. 1 Boundaries EXHIBIT A-2 Legal Description of District No. 2 Boundaries EXHIBIT A-3 Legal Description of District No. 3 Boundaries EXHIBIT B-1 District No. 1 Boundary Map EXHIBIT B-2 District No. 2 Boundary Map EXHIBIT B-3 District No. 3 Boundary Map EXHIBIT C Vicinity Map EXHIBIT D Public Improvement Cost Estimates EXHIBIT E Public Improvement Maps EXHIBIT F Financial Plan EXHIBIT G Public Benefits EXHIBIT H Disclosure Notice EXHIBIT I Form of Intergovernmental Agreement 12.2 Packet Pg. 202 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 1 I. INTRODUCTION A. Purpose and Intent. The Districts, which are intended to be independent units of local government separate and distinct from the City, are governed by this Service Plan, the Special District Act and other applicable State law. Except as may otherwise be provided by State law, City Code or this Service Plan, the Districts’ activities are subject to review and approval by the City Council only insofar as they are a material modification of this Service Plan under C.R.S. Section 32-1-207 of the Special District Act. It is intended that the Districts will provide all or part of the Public Improvements for the Project for the use and benefit of all anticipated inhabitants and taxpayers of the Districts. The primary purpose of the Districts will be to finance the construction of these Public Improvements by the issuance of Debt. It is also intended under this Service Plan that no District shall be authorized to issue any Debt, impose a Debt Mill Levy, or impose any Fees for payment on Debt unless and until the delivery of the applicable Public Benefits described in Section IV.B of this Service Plan has been secured in accordance with Section IV.B of this Service Plan. It is intended that this Service Plan also requires the Districts to pay a portion of the cost of the Regional Improvements, as provided in Section X of this Service Plan, as part of ensuring that those privately-owned properties to be developed in the Districts that benefit from the Regional Improvements pay a reasonable share of the associated costs. The Districts are not intended to provide ongoing operations and maintenance services except as expressly authorized in this Service Plan. It is the intent of the Districts to dissolve upon payment or defeasance of all Debt incurred or upon a court determination that adequate provision has been made for the payment of all Debt, except that if the Districts are authorized in this Service Plan to perform continuing operating or maintenance functions, the Districts shall continue in existence for the sole purpose of providing such functions and shall retain only the powers necessary to impose and collect the taxes or Fees authorized in this Service Plan to pay for the costs of those functions. It is intended that the Districts shall comply with the provisions of this Service Plan and that the City may enforce any non-compliance with these provisions as provided in Sections XVII and XVIII of this Service Plan. B. Need for the Districts. There are currently no other governmental entities, including the City, located in the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake the planning, design, acquisition, construction, installation, relocation, redevelopment and financing of the Public Improvements needed for the Project. Formation of the Districts is therefore necessary in order for the Public Improvements required for the Project to be provided in the most economic manner possible. 12.2 Packet Pg. 203 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 2 C. Objective of the City Regarding Districts’ Service Plan. The City’s objective in approving this Service Plan is to authorize the Districts to provide for the planning, design, acquisition, construction, installation, relocation and redevelopment of the Public Improvements from the proceeds of Debt to be issued by the Districts but in doing so, to also establish in the Service Plan the means by which the Regional Improvements and Public Benefits will be provided. Except as specifically provided in this Service Plan, all Debt is expected to be repaid by taxes and Fees imposed and collected for no longer than the Maximum Debt Mill Levy Imposition Term for residential properties and at a tax mill levy no higher than the Maximum Debt Mill Levy. Fees imposed for the payment of Debt shall be due no later than upon the issuance of a building permit. Debt which is issued within these parameters and, as further described in the Financial Plan, will insulate property owners from excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and reasonable discharge of the Debt. D. City Approvals. Any provision in this Service Plan requiring “City” or “City Council” approval or consent shall require the City Council’s prior written approval or consent exercised in its sole discretion. Any provision in this Service Plan requiring “City Manager” approval or consent shall require the City Manager’s prior written approval or consent exercised in the City Manager’s sole discretion. II. DEFINITIONS In this Service Plan, the following words, terms and phrases which appear in a capitalized format shall have the meaning indicated below, unless the context clearly requires otherwise: Aggregate Mill Levy: means the total mill levy resulting from adding a District’s Debt Mill Levy and Operating Mill Levy. A District’s Aggregate Mill Levy does not include any Regional Mill Levy that the District may levy. Aggregate Mill Levy Maximum: means the maximum number of combined mills the Districts may each levy for its Debt Mill Levy and Operating Mill Levy, at a rate not to exceed the limitation set in Section IX.B.1. Approved Development Plan: means a City-approved development plan or other land- use application required by the City Code for identifying, among other things, public improvements necessary for facilitating the development of property within the Service Area, which plan shall include, without limitation, any development agreement required by the City Code. Board or Boards: means the duly constituted board of directors of each of the Districts, or the Boards of Directors of all of the Districts, in the aggregate. Bond, Bonds or Debt: means bonds, notes or other multiple fiscal year financial obligations for the payment of which a District has promised to impose an ad valorem property tax 12.2 Packet Pg. 204 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 3 mill levy, Fees or other legally available revenue. Such terms do not include contracts through which a District procures or provides services or tangible property. City: means the City of Fort Collins, Colorado, a home rule municipality. City Code: means collectively the City’s Municipal Charter, Municipal Code, Land Use Code and ordinances as all are now existing and hereafter amended. City Council: means the City Council of the City. City Manager: means the City Manager of the City. C.R.S.: means the Colorado Revised Statutes. Debt Mill Levy: means a property tax mill levy imposed on Taxable Property within a District for the purpose of paying Debt as authorized in this Service Plan, at a rate not to exceed the limitations set in Section IX.B of this Service Plan. Developer: means a person or entity that is the owner of property or owner of contractual rights to property in the Service Area that intends to develop the property. District: means any of the following metropolitan districts: Northfield Metropolitan District No. 1, Northfield Metropolitan District No. 2 and Northfield Metropolitan District No. 3, as each are organized under and governed by this Service Plan. District No. 1 Boundaries: means the boundaries of the area legally described in Exhibit A-1 attached hereto and incorporated by reference and as depicted in the District No. 1 Boundary Map. District No. 2 Boundaries: means the boundaries of the area legally described in Exhibit A-2 attached hereto and incorporated by reference and as depicted in the District No. 2 Boundary Map. District No. 3 Boundaries: means the boundaries of the area legally described in Exhibit A-3 attached hereto and incorporated by reference and as depicted in the District No. 3 Boundary Map. District No. 1 Boundary Map: means the map of the District No. 1 Boundaries attached hereto as Exhibit B-1 and incorporated by reference. District No. 2 Boundary Map: means the map of the District No. 2 Boundaries attached hereto as Exhibit B-2 and incorporated by reference. District No. 3 Boundary Map: means the map of the District No. 3 Boundaries attached hereto as Exhibit B-3 and incorporated by reference. 12.2 Packet Pg. 205 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 4 Districts: means Northfield Metropolitan District No. 1, Northfield Metropolitan District No. 2 and Northfield Metropolitan District No. 3, collectively, organized under and governed by this Service Plan. End User: means any owner, or tenant of any owner, of any property within the Districts, who is intended to become burdened by the imposition of ad valorem property taxes and/or Fees. By way of illustration, a resident homeowner, renter, commercial property owner or commercial tenant is an End User. A Developer and any person or entity that constructs homes or commercial structures is not an End User. External Financial Advisor: means a consultant that: (1) is qualified to advise Colorado governmental entities on matters relating to the issuance of securities by Colorado governmental entities including matters such as the pricing, sales and marketing of such securities and the procuring of bond ratings, credit enhancement and insurance in respect of such securities; (2) shall be an underwriter, investment banker, or individual listed as a public finance advisor in the Bond Buyer’s Municipal Market Place or, in the City’s sole discretion, other recognized publication as a provider of financial projections; and (3) is not an officer or employee of the Districts or an underwriter of the Districts’ Debt. Fees: means the fees, rates, tolls, penalties and charges the Districts are authorized to impose and collect under this Service Plan. Financial Plan: means the Financial Plan described in Section IX of this Service Plan which was prepared by D.A. Davidson & Co., an External Advisor, in accordance with the requirements of this Service Plan and describes (a) how the Public Improvements are to be financed; (b) how the Debt is expected to be incurred; and (c) the estimated operating revenue derived from property taxes and any Fees for the first budget year through the year in which all District Debt is expected to be defeased or paid in the ordinary course. Maximum Debt Authorization: means the total Debt the Districts are permitted to issue as set forth in Section IX.B.7 of this Service Plan. Maximum Debt Mill Levy Imposition Term: means the maximum term during which a District’s Debt Mill Levy may be imposed on property developed in the Service Area for residential use, which shall include residential properties in mixed-use developments. This maximum term shall not exceed forty (40) years from December 31 of the year this Service Plan is approved by City Council Operating Mill Levy: means a property tax mill levy imposed on Taxable Property for the purpose of funding a District’s administration, operations and maintenance as authorized in this Service Plan, including, without limitation, repair and replacement of Public Improvements, and imposed at a rate not to exceed the limitations set in Section IX.B of this Service Plan. Planned Development: means the private development or redevelopment of the properties in the Service Area, commonly referred to as Northfield, under an Approved Development Plan. Project: means the installation and construction of the Public Improvements for the Planned Development. 12.2 Packet Pg. 206 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 5 Public Improvements: means the improvements and infrastructure the Districts are authorized by this Service Plan to fund and construct for the Planned Development to serve the future taxpayers and inhabitants of the Districts, except as specifically prohibited or limited in this Service Plan. Public Improvements shall include, without limitation, the improvements and infrastructure described in Exhibit F attached hereto and incorporated by reference. Public Improvements do not include Regional Improvements. Regional Improvements: means any regional public improvement identified by the City for funding, in whole or part, by a Regional Mill Levy levied by the Districts, including, without limitation, the public improvements described in Exhibit I attached hereto and incorporated by reference. Regional Mill Levy: means the property tax mill levy imposed on Taxable Property for the purpose of planning, designing, acquiring, funding, constructing, installing, relocating and/or redeveloping the Regional Improvements and/or to fund the administration and overhead costs related to the Regional Improvements as provided in Section X of this Service Plan. Service Area: means the property collectively within the District No. 1 Boundaries, District No. 2 Boundaries, and District No. 3 Boundaries, all as may be amended from time to time as further set forth in this Service Plan and the Special District Act. Special District Act: means Article 1 in Title 32 of the Colorado Revised Statutes, as amended. Service Plan: means this service plan for the Districts approved by the City Council. Service Plan Amendment: means a material modification of the Service Plan approved by the City Council in accordance with the Special District Act, this Service Plan and any other applicable law. State: means the State of Colorado. TABOR: means Colorado’s Taxpayer’s Bill of Rights in Article X, Section 20 of the Colorado Constitution. Taxable Property: means the real and personal property within the Service Area that will be subject to the ad valorem property taxes imposed by the Districts. Vicinity Map: means the map attached hereto as Exhibit E and incorporated by reference depicting the location of the Service Area within the regional area surrounding it. III. BOUNDARIES AND LOCATION The area of the Service Area includes approximately 56.3 acres. A legal description and map of the District No. 1 Boundaries are attached hereto as Exhibit A-1 and Exhibit B-1, respectively; a legal description and map of the District No. 2 Boundaries are attached hereto as Exhibit A-2 and Exhibit B-2, respectively; and a legal description and map of the District No. 3 Boundaries are attached hereto as Exhibit A-3 and Exhibit B-3, respectively. It is anticipated that 12.2 Packet Pg. 207 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 6 the Districts’ Boundaries may expand or contract from time to time as the Districts undertake inclusions or exclusions pursuant to the Special District Act, subject to the limitations set forth in Section V of this Service Plan. The location of the Service Area is depicted in the vicinity map attached as Exhibit E. IV. DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC BENEFITS & ASSESSED VALUATION A. Project and Planned Development. Situated within walking distance of the City’s Old Town, the Planned Development is a proposed 56.3-acre, mixed-use community located west of Lindenmeier Road, southeast of the Lake Canal and north of the to-be designated historic Alta Vista neighborhood. The Planned Development targets a number of the City’s stretch outcomes and critical objectives, including neighborhood livability and social health, environmental health, and transportation. The Planned Development incorporates goals of the following plans: the City Plan, Transportation Master Plan, Master Street Plan, Nature in the City Strategic Plan, Natural Areas Master Plan, Paved Recreational Trail Master Plan, Northside Neighborhoods Plan, Pedestrian Plan, and Bicycle Master Plan. The Planned Development is anticipated to include approximately 442 attached housing units, of which a minimum of sixty-five (65) housing units will be designated and provided as affordable housing, as either for-sale or for-rent, affordable housing (the “Required Affordable Units”), and the majority of the rest of the units will be sold as attainable housing units. The Planned Development is also anticipated to include a mixed-use center that will offer light commercial use on the first floor, residential for-rent units on the second floor, and small amenities open to the public. The estimated resident population at build-out is 1,139. Construction of the Planned Development is planned to be completed by year 2026. In accordance with the Financial Plan, the estimated assessed valuation of the Planned Development in 2024 is estimated to be $8,525,353 for residential and $181,867 for commercial, and in 2029 it is estimated to be $13,129,996 for residential and $204,346 for commercial. Approval of this Service Plan by the City Council does not constitute nor imply approval of the development of any particular land-use for any specific area within the Districts. Any such approval must be contained within an Approved Development Plan. B. Public Benefits. In addition to providing the Public Improvements described in Exhibit DF and the Regional Improvements, the Districts will deliver several public benefits to the community in accordance with the City’s Metro District Service Plan Policy. The public benefits include, but are not limited to, developing critical on-site and off-site public infrastructure, employing high quality and smart growth practices, creating affordable housing unitsthe Required Affordable Units, creating attainable housing units to support the workforce, and incorporating environmental sustainability through energy and water conservation, and enhanced multimodal transportation, all of which are specifically described in Exhibit G attached hereto and incorporated herein by this reference (collectively, the “Public Benefits”).I attached hereto and incorporated herein by this reference 12.2 Packet Pg. 208 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 7 (collectively, the “Public Benefits”). In addition to the foregoing, if all or a portion of the Required Affordable Units are offered as for-sale units, such units must be sold at a price affordable in Larimer County, Colorado, for an area median income (“AMI”) of 80% or lower. If all of a portion of the Required Affordable Units are offered as for-rent units, such units must be rented at a price affordable in Larimer County, Colorado, for an AMI of 80% or lower and the average of all rents for those units must at all times reasonably approximate to a Larimer County AMI of 60% or lower. In addition, as provided in Exhibit I, the Required Affordable Units shall be designed and constructed to the same energy-efficiency standards as the other housing units built in the Planned Development. Therefore, notwithstanding any provision to the contrary contained in this Service Plan, no District shall be authorized to issue any Debt or to impose a Debt Mill Levy or any Fees for payment of Debt unless and until the delivery of the Public Benefits specifically related to the phase of the Planned Development or portion of the Project to be financed with such Debt, Debt Mill Levy or Fees are secured in a manner approved by the City Council. To satisfy this precondition to the issuance of Debt and to the imposition of the Debt Mill Levy and Fees, delivery of the Public Benefits for each phase of the Project and the Planned Development must be secured by one of the following methods, as applicable: 1. For any portion of the Public Benefits to be provided by one or more of the Districts, each such District must enter into an intergovernmental agreement with the City either (i) agreeing to provide those Public Benefits as a legally enforceable multiple-fiscal year obligation of the District under TABOR, or by (ii) securing performance of that obligation with a surety bond, letter of credit, or other security acceptable to the City, and any such intergovernmental agreement must be approved by the City Council by resolution; 2. For any portion of the Public Benefits to be provided by one or more Developers of the Planned Development, each such Developer must either (i) enter into a development agreement with the City under the Developer’s applicable Approved Development Plan, which agreement must legally obligate the Developer to provide those Public Benefits before the City is required to issue building permits and/or certificates of occupancy for structures to be built under the Approved Development Plan for that phase of the Planned Development, or (ii) secure such obligations with a surety bond, letter of credit, or other security acceptable to the City, and all such development agreements must be approved by the City Council by resolution; or 3. For any portion of the Public Benefits to be provided in part by one or more of the Districts in the Project and in part by one or more of the Developers in the Planned Development or Project, an agreement between the City, the affected District(s), and the Developer(s) that secures such Public Benefits as legally binding obligations using the methods described in subsections 1 and 2 above, and all such agreements must be approved by the City Council by resolution. Specifically, with regard to delivery of the Required Affordable Units contemplated in Section 2 above, the development agreement between the Developer and the City shall include the following conditions: 12.2 Packet Pg. 209 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 8 The Required Affordable Units may be provided through either of the following two mechanisms or any other mechanism mutually agreed upon by the Developer and the City, or any combination of the same: a. Construction of the Required Affordable Units by the Developer under the Approved Development Plan. Only those Developer-constructed Required Affordable Units for which the City has issued a certificate of occupancy will be counted toward the satisfaction of the total number of Required Affordable Units needed. b. Sale of lots for the Required Affordable Units within the Planned Development by the Developer to a non-profit or for-profit builder who will contractually guarantee to the City that the builder will only build Required Affordable Units on the those lots. At the time any such sale is closed and the contractual guarantee has been provided to the City to its satisfaction, the number of housing units approved for construction on such lots shall count toward the Required Affordable Units. All sixty-five (65) of the Required Affordable Units shall be secured through one of the mechanisms described above (or through any other mechanism agreed upon in writing between the City and the Developer) before the City is required to issue more than two hundred twenty-one (221) total building permits for dwelling units to be built in the Planned Development. Once all sixty-five (65) of the Required Affordable Units have been secured as here required, this restriction on building permits shall terminate. C. Assessed Valuation. The current assessed valuation of the Service Area is approximately $2,024 and, at build out is expected to be $13,334,342. These amounts are expected to be sufficient to reasonably discharge the Debt as demonstrated in the Financial Plan. V. INCLUSION OF LAND IN THE SERVICE AREA The Districts shall not add any real property to the Service Area without the City’s approval and in compliance with the Special District Act. Once a District has issued Debt, it shall not exclude real property from the District’s boundaries without the prior written consent of the City Council. VI. DISTRICT GOVERNANCE The Districts’ Boards shall be comprised of persons who are a qualified “eligible elector” of the Districts as provided in the Special District Act. It is anticipated that, over time, the End Users who are eligible electors will assume direct electoral control of the Districts’ Boards as 12.2 Packet Pg. 210 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 9 development of the Service Area progresses. The Districts shall not enter into any agreement by which the End Users’ electoral control of the Boards is removed or diminished. VII. AUTHORIZED AND PROHIBITED POWERS A. General Grant of Powers. The Districts shall have the power and authority to provide the Public Improvements, the Regional Improvements and related operation and maintenance services, including design review and covenant enforcement services, within and without the Service Area, as such powers and authorities are described in the Special District Act, other applicable State law, common law and the Colorado Constitution, subject to the prohibitions, restrictions and limitations set forth in this Service Plan. If, after the Service Plan is approved, any State law is enacted to grant additional powers or authority to metropolitan districts by amendment of the Special District Act or otherwise, such powers and authority shall be deemed to be a part hereof. These new powers and authority shall only be available to be exercised by the Districts if the City Council first approves a Service Plan Amendment to specifically allow the exercise of such powers or authority by the Districts. B. Prohibited Improvements and Services and other Restrictions and Limitations. The Districts’ powers and authority under this Service Plan to provide Public Improvements and services and to otherwise exercise its other powers and authority under the Special District Act and other applicable State law, are prohibited, restricted and limited as hereafter provided. Failure to comply with these prohibitions, restrictions and limitations shall constitute a material modification under this Service Plan and shall entitle the City to pursue all remedies available at law and in equity as provided in Sections XVII and XVIII of this Service Plan: 1. Eminent Domain Restriction The Districts shall not exercise their statutory power of eminent domain without first obtaining resolution approval from the City Council. This restriction on the Districts’ exercise of their eminent domain power is being voluntarily acquiesced to by the Districts and shall not be interpreted in any way as a limitation on the Districts’ sovereign powers and shall not negatively affect the Districts’ status as political subdivisions of the State as conferred by the Special District Act. 2. Fee Limitation Any Fees imposed for the repayment of Debt, if authorized by this Service Plan, shall not be imposed by the Districts upon or collected from an End User. In addition, Fees imposed for the payment of Debt shall not be imposed unless and until the requirements for 12.2 Packet Pg. 211 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 10 securing the delivery of the District’s portion of the Public Benefits have been satisfied in accordance with Section IV.B of this Service Plan. Notwithstanding the foregoing, this Fee limitation shall not apply to any Fee imposed to fund the operation, maintenance, repair or replacement of Public Improvements or the administration of the Districts. 3. Operations and Maintenance The primary purpose of the Districts is to plan for, design, acquire, construct, install, relocate, redevelop and finance the Public Improvements. The Districts shall dedicate the Public Improvements to the City or other appropriate jurisdiction or owners’ association in a manner consistent with the Approved Development Plan and the City Code, provided that nothing herein requires the City to accept a dedication. The Districts are each specifically authorized to operate and maintain all or any part or all of the Public Improvements not otherwise conveyed or dedicated to the City or another appropriate governmental entity until such time as the District is dissolved. 4. Fire Protection Restriction The Districts are not authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain fire protection facilities or services, unless such facilities and services are provided pursuant to an intergovernmental agreement with the Poudre Fire Authority. The authority to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or maintain fire hydrants and related improvements installed as part of the Project’s water system shall not be limited by this subsection. 5. Public Safety Services Restriction The Districts are not authorized to provide policing or other security services. However, the Districts may, pursuant to C.R.S. § 32-1-1004(7), as amended, furnish security services pursuant to an intergovernmental agreement with the City. 6. Grants from Governmental Agencies Restriction The Districts shall not apply for grant funds distributed by any agency of the United States Government or the State without the prior written approval of the City Manager. This does not restrict the collection of Fees for services provided by the Districts to the United States Government or the State. 7. Golf Course Construction Restriction Acknowledging that the City has financed public golf courses and desires to coordinate the construction of public golf courses within the City’s boundaries, the Districts shall not be authorized to plan, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain a golf course unless such activity is pursuant to an intergovernmental agreement with the City approved by the City Council. 8. Television Relay and Translation Restriction 12.2 Packet Pg. 212 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 11 The Districts are not authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain television relay and translation facilities and services, other than for the installation of conduit as a part of a street construction project, unless such facilities and services are provided pursuant to prior written approval from the City Council as a Service Plan Amendment. 9. Potable Water and Wastewater Treatment Facilities Acknowledging that the City and other existing special districts operating within the City currently own and operate treatment facilities for potable water and wastewater that are available to provide services to the Service Area, the Districts shall not plan, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain such facilities without obtaining the City Council’s prior written approval either by intergovernmental agreement or as a Service Plan Amendment. 10. Sales and Use Tax Exemption Limitation The Districts shall not exercise any sales and use tax exemption otherwise available to the Districts under the City Code. 11. Sub-district Restriction The Districts shall not create any sub-district pursuant to the Special District Act without the prior written approval of the City Council. 12. Privately Placed Debt Limitation Prior to the issuance of any privately placed Debt, the Districts shall obtain the certification of an External Financial Advisor substantially as follows: We are [I am] an External Financial Advisor within the meaning of the District’s Service Plan. We [I] certify that (1) the net effective interest rate (calculated as defined in C.R.S. Section 32-1- 103(12)) to be borne by [insert the designation of the Debt] does not exceed a reasonable current [tax- exempt] [taxable] interest rate, using criteria deemed appropriate by us [me] and based upon our [my] analysis of comparable high yield securities; and (2) the structure of [insert designation of the Debt], including maturities and early redemption provisions, is reasonable considering the financial circumstances of the District. 13. Special Assessments 12.2 Packet Pg. 213 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 12 The Districts shall not impose special assessments without the prior written approval of the City Council. VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS Exhibit DF summarizes the type of Public Improvements that are projected to be constructed and/or installed by the Districts. The cost, scope, and definition of such Public Improvements may vary over time. The total estimated costs of Public Improvements, as set forth in Exhibit DF, excluding any improvements paid for by the Regional Mill Levy necessary to serve the Planned Development, are approximately $30,101,665131,965 in 2019 dollars. The cost estimates are based upon preliminary engineering, architectural surveys, and reviews of the Public Improvements set forth in Exhibit DF and include all construction cost estimates together with estimates of costs such as land acquisition, engineering services, legal expenses and other associated expenses. Maps of the anticipated location, operation, and maintenance of Public Improvements are attached hereto as Exhibit EG. Changes in the Public Improvements or cost, which are approved by the City in an Approved Development Plan and any agreement approved by the City Council pursuant to Section IV.B of this Service Plan, shall not constitute a Service Plan Amendment. In addition, due to the preliminary nature of the Project, the City shall not be bound by this Service Plan in reviewing and approving the Approved Development Plan and the Approved Development Plan shall supersede the Service Plan with regard to the cost, scope, and definition of Public Improvements. Provided, however, any agreement approved and entered into pursuant to Section IV.B of this Service Plan for the provision of a Public Improvement that is also a Public Benefit shall supersede both this Service Plan and the Approved Development Plan. Except as otherwise provided by an agreement approved under Section IV.B of this Service Plan: (i) the design, phasing of construction, location and completion of Public Improvements will be determined by the Districts to coincide with the phasing and development of the Planned Development and the availability of funding sources; (ii) the Districts may, in their discretion, phase the construction, completion, operation, and maintenance of Public Improvements or defer, delay, reschedule, rephase, relocate or determine not to proceed with the construction, completion, operation, and maintenance of Public Improvements, and such actions or determinations shall not constitute a Service Plan Amendment; (iii) the Districts shall also be permitted to allocate costs between such categories of the Public Improvements as deemed necessary in their discretion; and (iv) to the extent that the City reimburses a developer for Public Improvements that would otherwise be reimbursable under the Special District Act, the District shall not reimburse the developer for such Public Improvements. The Public Improvements shall be listed using an ownership and maintenance matrix in Exhibit DF, either individually or categorically, to identify the ownership and maintenance responsibilities of the Public Improvements. The City Code has development standards, contracting requirements and other legal requirements related to the construction and payment of public improvements and related to certain operation activities. Relating to these, the Districts shall comply with the following requirements: A. Development Standards. 12.2 Packet Pg. 214 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 13 The Districts shall ensure that the Public Improvements are designed and constructed in accordance with the standards and specifications of the City Code and of other governmental entities having proper jurisdiction, as applicable. The Districts directly, or indirectly through any Developer, will obtain the City’s approval of civil engineering plans and will obtain applicable permits for construction and installation of Public Improvements prior to performing such work. Unless waived by the City Council, the Districts shall be required, in accordance with the City Code, to post a surety bond, letter of credit, or other approved development security for any Public Improvements to be constructed by the Districts. Such development security may be released in the City Manager’s discretion when the constructing District has obtained funds, through Debt issuance or otherwise, adequate to insure the construction of the Public Improvements, unless such release is prohibited by or in conflict with any City Code provision, State law or any agreement approved and entered into under Section IV.B of this Service Plan. Any limitation or requirement concerning the time within which the City must review the Districts’ proposal or application for an Approved Development Plan or other land use approval is hereby waived by the Districts. B. Contracting. The Districts shall comply with all applicable State purchasing, public bidding and construction contracting requirements and limitations. C. Land Acquisition and Conveyance. The purchase price of any land or improvements acquired by the Districts from the Developer shall be no more than the then-current fair market value as confirmed by an independent MAI appraisal for land and by an independent professional engineer for improvements. Land, easements, improvements and facilities conveyed to the City shall be free and clear of all liens, encumbrances and easements, unless otherwise approved by the City Manager prior to conveyance. All conveyances to the City shall be by special warranty deed, shall be conveyed at no cost to the City, shall include an ALTA title policy issued to the City, shall meet the environmental standards of the City and shall comply with any other conveyance prerequisites required in the City Code. D. Equal Employment and Discrimination. In connection with the performance of all acts or activities hereunder, the Districts shall not discriminate against any person otherwise qualified with respect to its hiring, discharging, promoting or demoting or in matters of compensation solely because of race, color, religion, national origin, gender, age, military status, sexual orientation, gender identity or gender expression, marital status, or physical or mental disability, and further shall insert the foregoing provision in contracts or subcontracts entered into by the Districts to accomplish the purposes of this Service Plan. 12.2 Packet Pg. 215 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 14 IX. FINANCIAL PLAN/PROPOSED DEBT This Section IX of the Service Plan describes the nature, basis, method of funding and financing limitations associated with the acquisition, construction, completion, repair, replacement, operation and maintenance of Public Improvements. A. Financial Plan. The Districts’ Financial Plan, attached as Exhibit FH and incorporated by reference, reflects the Districts’ anticipated schedule for incurring Debt to fund Public Improvements in support of the Project. The Financial Plan also reflects the schedule of all anticipated revenues flowing to the Districts derived from the Districts’ mill levies, Fees imposed by the Districts, specific ownership taxes, and all other anticipated legally available revenues. The Financial Plan is based on economic, political and industry conditions as they presently exist and reasonable projections and estimates of future conditions. These projections and estimates are not to be interpreted as the only method of implementation of the District’s goals and objectives but rather a representation of one feasible alternative. Other financial structures may be used so long as they are in compliance with this Service Plan. The Financial Plan incorporates all of the provisions of this Section IX. Based upon the assumptions contained therein, the Financial Plan projects the issuance of Bonds to fund Public Improvements and anticipated Debt repayment based on the development assumptions and absorptions of the property in the Service Area by End Users. The Financial Plan anticipates that the Districts will acquire, construct, and complete all Public Improvements needed to serve the Service Area. The Financial Plan demonstrates that the Districts will have the financial ability to discharge all Debt to be issued as part of the Financial Plan on a reasonable basis. Furthermore, the Districts will secure the certification of an External Financial Advisor who will provide an opinion as to whether such Debt issuances are in the best interest of the Districts at the time of issuance. B. Mill Levies. It is anticipated that the Districts will impose a Debt Mill Levy and an Operating Mill Levy on all property within the Service Area. In doing so, the following shall apply: 1. Aggregate Mill Levy Maximum The Aggregate Mill Levy shall not exceed in any year the Aggregate Mill Levy Maximum, which is fifty (50) mills. 2. Regional Mill Levy Not Included in Other Mill Levies The Regional Mill Levy shall not be counted against the Aggregate Mill Levy Maximum. 12.2 Packet Pg. 216 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 15 3. Operating Mill Levy The Districts may each impose an Operating Mill Levy of up to fifty (50) mills until the District imposes a Debt Mill Levy. Once a District imposes a Debt Mill Levy of any amount, that District’s Operating Mill Levy shall not exceed ten (10) mills at any point. 4. Gallagher Adjustments In the event the State’s method of calculating assessed valuation for the Taxable Property changes after January 1, 2019, or any constitutionally mandated tax credit, cut or abatement takes effect after January 1, 2019, the Districts’ Aggregate Mill Levy, Debt Mill Levy, Operating Mill Levy, and Aggregate Mill Levy Maximum, amounts herein provided may be increased or decreased to reflect such changes; such increases or decreases shall be determined by the Districts’ Boards in good faith so that to the extent possible, the actual tax revenues generated by such mill levies, as adjusted, are neither enhanced nor diminished as a result of such change occurring after January 1, 2019. For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation will be a change in the method of calculating assessed valuation. 5. Excessive Mill Levy Pledges Any Debt issued with a mill levy pledge, or which results in a mill levy pledge, that exceeds the Aggregate Mill Levy Maximum or the Maximum Debt Mill Levy Imposition Term, shall be deemed a material modification of this Service Plan and shall not be an authorized issuance of Debt unless and until such material modification has been approved by a Service Plan Amendment. 6. Refunding Debt The Maximum Debt Mill Levy Imposition Term may be exceeded for Debt refunding purposes if: (1) a majority of the issuing District’s Board is composed of End Users and have voted in favor of a refunding of a part or all of the Debt; or (2) such refunding will result in a net present value savings. 7. Maximum Debt Authorization The Districts anticipate approximately $30,101,665131,965 in project costs in 2019 dollars as set forth in Exhibit DF and anticipate issuing approximately $16,000,000 in Debt to pay such costs as set forth in Exhibit FH, which Debt issuance amount shall be the amount of the Maximum Debt Authorization. In addition, a District shall not issue any Debt unless and until delivery of the District’s Public Benefits have been secured as required in Section IV.B of this Service Plan. The Districts collectively shall not issue Debt in excess of the Maximum Debt Authorization. Bonds which have been refunded shall not count against the Maximum Debt Authorization. The Districts must obtain from the City Council a Service Plan Amendment prior to issuing Debt in excess of the Maximum Debt Authorization. 12.2 Packet Pg. 217 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 16 C. Maximum Voted Interest Rate and Underwriting Discount. The interest rate on any Debt is expected to be the market rate at the time the Debt is issued. The maximum interest rate on any Debt, including any defaulting interest rate, is not permitted to exceed twelve percent (12%). The maximum underwriting discount shall be three percent (3%). Debt, when issued, will comply with all relevant requirements of this Service Plan, the Special District Act, other applicable State law and federal law as then applicable to the issuance of public securities. D. Interest Rate and Underwriting Discount Certification. The Districts shall retain an External Financial Advisor to provide a written opinion on the market reasonableness of the interest rate on any Debt and any underwriter discount payed by the Districts as part of a Debt financing transaction. The Districts shall provide this written opinion to the City before issuing any Debt based on it. E. Disclosure to Purchasers. In order to notify future End Users who are purchasing residential lots or dwellings units in the Service Area that they will be paying, in addition to the property taxes owed to other taxing governmental entities, the property taxes imposed under the Debt Mill Levy, the Operating Mill Levy and possibly the Regional Mill Levy, the Districts shall not be authorized to issue any Debt under this Service Plan until there is included in the Developer’s Approved Development Plan provisions that require the following: 1. That the Developer, and its successors and assigns, shall prepare and submit to the City Manager for his approval a disclosure notice in substantially the form attached hereto as Exhibit H (the “Disclosure Notice”); 2. That when the Disclosure Notice is approved by the City Manager, the Developer shall record the Disclosure Notice in the Larimer County Clerk and Recorders Office; and 3. That the approved Disclosure Notice shall be provided by the Developer, and by its successors and assigns, to each potential End User purchaser of a residential lot or dwelling unit in the Service Area before that purchaser enters into a written agreement for the purchase and sale of that residential lot or dwelling unit. F. External Financial Advisor. An External Financial Advisor shall be retained by the Districts to provide a written opinion as to whether any Debt issuance is in the best interest of the issuing District once the total amount of Debt issued by such District exceeds Five Million Dollars ($5,000,000). The External Financial Advisor is to provide advice to the issuing District’s Board regarding the proposed terms and whether Debt conditions are reasonable based upon the status of development within the District, the projected tax base increase in the District, the security offered and other considerations as may be identified by the Advisor. The issuing District shall include in the transcript of any Bond transaction, or other appropriate financing documentation for related Debt instrument, a 12.2 Packet Pg. 218 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 17 signed letter from the External Financial Advisor providing an official opinion on the structure of the Debt, stating the Advisor’s opinion that the cost of issuance, sizing, repayment term, redemption feature, couponing, credit spreads, payment, closing date, and other material transaction details of the proposed Debt serve the best interest of the issuing District. Debt shall not be undertaken by the Districts if found to be unreasonable by the External Financial Advisor. G. Disclosure to Debt Purchasers. Any Debt of the Districts shall set forth a statement in substantially the following form: By acceptance of this instrument, the owner of this Debt agrees and consents to all of the limitations with respect to the payment of the principal and interest on this Debt contained herein, in the resolution of the District authorizing the issuance of this Debt and in the Service Plan of the District. This Debt is not and cannot be a Debt of the City of Fort Collins. Similar language describing the limitations with respect to the payment of the principal and interest on Debt set forth in this Service Plan shall be included in any document used for the offering of the Debt for sale to persons, including, but not limited to, a Developer of property within the Service Area. H. Security for Debt. The Districts shall not pledge any revenue or property of the City as security for the indebtedness set forth in this Service Plan. Approval of this Service Plan shall not be construed as a guarantee by the City of payment of any of the Districts’ obligations; nor shall anything in the Service Plan be construed to create any responsibility or liability on the part of the City in the event of default by the Districts in the payment of any such obligation. I. TABOR Compliance. The Districts shall comply with the provisions of TABOR. In the discretion of the Districts’ Boards, the Districts may set up other qualifying entities to manage, fund, construct and operate facilities, services, and programs. To the extent allowed by law, any entity created by a District will remain under the control of the District’s Board. J. Districts’ Operating Costs. The estimated cost of acquiring land, engineering services, legal services and administrative services, together with the estimated costs of the Districts’ organization and initial operations, are anticipated to be One Hundred Thousand Dollars ($100,000), which will be eligible for reimbursement from Debt proceeds. 12.2 Packet Pg. 219 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 18 In addition to the capital costs of the Public Improvements, the Districts will require operating funds for administration and to plan and cause the Public Improvements to be operated and maintained. The first year’s operating budget is estimated to be Fifty Thousand Dollars ($50,000). Ongoing administration, operations and maintenance costs may be paid from property taxes collected through the imposition of an Operating Mill Levy, subject to the limitations set forth in Section IX.B.3, as well as from other revenues legally available to the Districts. X. REGIONAL IMPROVEMENTS The Districts shall be authorized to provide for the planning, design, acquisition, funding, construction, installation, relocation, redevelopment, administration and overhead costs related to the provision of Regional Improvements. At the discretion of the City, the Districts shall impose a Regional Improvement Mill Levy on all property within the Districts’ Boundaries and any properties thereafter included in the Boundaries under the following terms: A. Regional Mill Levy Authority. The Districts shall seek the authority to impose an additional Regional Mill Levy of five (5) mills as part of the Districts’ initial TABOR election. The Districts shall also seek from the electorate in that election the authority under TABOR to enter into an intergovernmental agreement with the City obligating the Districts to pay as a multiple-fiscal year obligation the proceeds from the Regional Mill Levy to the City. Obtaining such voter-approval of this intergovernmental agreement shall be a precondition to the Districts issuing any Debt and imposing the Debt Mill Levy, the Operating Mill Levy and Fees for the repayment of Debt under this Service Plan. B. Regional Mill Levy Imposition. The Districts shall each impose the Regional Mill Levy at a rate not to exceed five (5) mills within one year of receiving written notice from the City Manager to the Districts requesting the imposition of the Regional Mill Levy and stating the mill rate to be imposed. C. City Notice Regarding Regional Improvements. Such notice from the City shall provide a description of the Regional Improvements to be constructed and an analysis explaining how the Regional Improvements will be beneficial to property owners within the Service Area. The City shall make a good faith effort to require that planned developments that (i) are adjacent to the Service Area and (ii) will benefit from the Regional Improvement also impose a Regional Mill Levy, to the extent possible. D. Regional Improvements Authorized Under Service Plan. If so notified by the City Manager, the Regional Improvements shall be considered public improvements that the Districts would otherwise be authorized to design, construct, install re-design, re-construct, repair or replace pursuant to this Service Plan and applicable law. 12.2 Packet Pg. 220 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 19 E. Expenditure of Regional Mil Levy Revenues. Revenue collected through the imposition of the Regional Mill Levy shall be expended as follows: 1. Intergovernmental Agreement If the City and the Districts have executed an intergovernmental agreement concerning the Regional Improvements, then the revenue from the Regional Mill Levy shall be used in accordance with such agreement; 2. No Intergovernmental Agreement If no intergovernmental agreement exists between the Districts and the City, then the revenue from the Regional Mill Levy shall be paid to the City, for use by the City in the planning, designing, constructing, installing, acquiring, relocating, redeveloping or financing of Regional Improvements which benefit the End Users of the Districts as prioritized and determined by the City. F. Regional Mill Levy Term. The imposition of the Regional Mill Levy shall not exceed a term of twenty-five (25) years from December 31 of the tax collection year after which the Regional Mill Levy is first imposed. G. Completion of Regional Improvements. All Regional Improvements shall be completed prior to the end of the twenty-five (25) year Regional Mill Levy term. H. City Authority to Require Imposition. The City’s authority to require a District to initiate the imposition of a Regional Mill Levy shall expire fifteen (15) years after December 31st of the year in which said District first imposes a Debt Mill Levy. I. Regional Mill Levy Not Included in Other Mill Levies. The Regional Mill Levy imposed shall not be applied toward the calculation of the Aggregate Mill Levy Maximum. J. Gallagher Adjustment. In the event the method of calculating assessed valuation is changed January 1, 2019, or any constitutionally mandated tax credit, cut or abatement takes effect after January 1, 2019, the Regional Mill Levy may be increased or shall be decreased to reflect such changes; such increases or decreases shall be determined by each of the Districts’ Boards in good faith so that to the extent possible, the actual tax revenues generated by the Regional Mill Levy, as adjusted, are 12.2 Packet Pg. 221 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 20 neither enhanced nor diminished as a result of such change occurring after January 1, 2019. For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation will be a change in the method of calculating assessed valuation. XI. CITY FEES The Districts shall pay all applicable City fees as required by the City Code. XII. BANKRUPTCY LIMITATIONS All of the limitations contained in this Service Plan, including, but not limited to, those pertaining to the Aggregate Mill Levy Maximum, Maximum Debt Mill Levy Imposition Term and Fees, have been established under the authority of the City in the Special District Act to approve this Service Plan. It is expressly intended that by such approval such limitations: (i) shall not be set aside for any reason, including by judicial action, absent a Service Plan Amendment; and (ii) are, together with all other requirements of State law, included in the “political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11 U.S.C.) Section 903, and are also included in the “regulatory or electoral approval necessary under applicable non-bankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6). XIII. ANNUAL REPORTS AND BOARD MEETINGS A. General. Each of the Districts shall be responsible for submitting an annual report to the City Clerk no later than September 1st of each year following the year in which the Orders and Decrees creating the Districts have been issued. The Districts may file a consolidated annual report. The annual report(s) may be made available to the public on the City’s website. B. Board Meetings. Each of the Districts’ Boards shall hold at least one public board meeting in three of the four quarters of each calendar year, beginning in the first full calendar year after a District’s creation. This meeting requirement shall not apply until there is at least one End User of property within the District. Also, this requirement shall no longer apply when a majority of the directors on the District’s Board are End Users. Notice for each of these meetings shall be given in accordance with the requirements of the Special District Act and other applicable State Law. C. Report Requirements. Unless waived in writing by the City Manager, each of the Districts’ annual report must include the following: 1. Narrative A narrative summary of the progress of the District in implementing its Service Plan for the report year. 12.2 Packet Pg. 222 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 21 2. Financial Statements Except when an exemption from audit has been granted for the report year under the Local Government Audit Law, the audited financial statements of the District for the report year including a statement of financial condition (i.e., balance sheet) as of December 31 of the report year and the statement of operation (i.e., revenue and expenditures) for the report year. 3. Capital Expenditures Unless disclosed within a separate schedule to the financial statements, a summary of the capital expenditures incurred by the District in development of improvements in the report year. 4. Financial Obligations Unless disclosed within a separate schedule to the financial statements, a summary of financial obligations of the District at the end of the report year, including the amount of outstanding Debt, the amount and terms of any new District Debt issued in the report year, the total assessed valuation of all Taxable Property within the Service Area as of January 1 of the report year and the current total District mill levy pledged to Debt retirement in the report year. 5. Board Contact Information The names and contact information of the current directors on the District’s Board, any District manager and the attorney for the District shall be listed in the report. The District’s current office address, phone number, email address and any website address shall also be listed in the report. 6. Other Information Any other information deemed relevant by the City Council or deemed reasonably necessary by the City Manager. D. Reporting of Significant Events. The annual report of each District shall include information as to any of the following that occurred during the report year: 1. Boundary changes made or proposed to the District’s Boundaries as of December 31 of the report year. 2. Intergovernmental Agreements with other governmental entities, either entered into or proposed as of December 31 of the report year. 3. Copies of the District’s rules and regulations, if any, or substantial changes to the District’s rules and regulations as of December 31 of the report year. 12.2 Packet Pg. 223 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 22 4. A summary of any litigation which involves the District’s Public Improvements as of December 31 of the report year. 5. A list of all facilities and improvements constructed by the District that have been dedicated to and accepted by the City as of December 31 of the report year. 6. Notice of any uncured events of default by the District, which continue beyond a ninety (90) day period, under any Debt instrument. 7. Any inability of the District to pay its obligations as they come due, in accordance with the terms of such obligations, which continue beyond a ninety (90) day period. E. Failure to Submit. In the event the annual report is not timely received by the City Clerk or is not fully responsive, notice of such default shall be given to the District’s Board at its last known address. The failure of the District to file the annual report within forty-five (45) days of the mailing of such default notice by the City Clerk may constitute a material modification of the Service Plan, at the discretion of the City Manager. XIV. SERVICE PLAN AMENDMENTS This Service Plan is general in nature and does not include specific detail in some instances. The Service Plan has been designed with sufficient flexibility to enable the Districts to provide required improvements, services and facilities under evolving circumstances without the need for numerous amendments. Modification of the general types of improvements and facilities making up the Public Improvements, and changes in proposed configurations, locations or dimensions of the Public Improvements, shall be permitted to accommodate development needs consistent with the then-current Approved Development Plans for the Project and any agreement approved by the City Council pursuant to the Section IV.B of this Service Plan. Any action of one or more of the Districts, which is a material modification of this Service Plan requiring a Service Plan Amendment as provided in in Section XV of this Service Plan or that does not comply with any provision of this Service Plan, shall be deemed to be a material modification to this Service Plan unless otherwise expressly provided in this Service Plan. All other departures from the provisions of this Service Plan shall be considered on a case-by-case basis as to whether such departures are a material modification under this Service Plan or the Special District Act. XV. MATERIAL MODIFICATIONS Material modifications to this Service Plan may be made only in accordance with C.R.S. Section 32-1-207 as a Service Plan Amendment. No modification shall be required for an action of the Districts that does not materially depart from the provisions of this Service Plan, unless otherwise provided in this Service Plan. Departures from the Service Plan that constitute a material modification requiring a Service Plan Amendment include, without limitation: 12.2 Packet Pg. 224 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 23 A. Actions or failures to act that create materially greater financial risk or burden to the taxpayers of the Districts; B. Performance of a service or function, construction of an improvement, or acquisition of a major facility that is not closely related to an improvement, service, function or facility authorized in the Service Plan; C. Failure to perform a service or function, construct an improvement or acquire a facility required by the Service Plan; and D. Failure to comply with any of the prohibitions, limitations and restrictions of this Service Plan. XVI. DISSOLUTION Upon independent determination by the City Council that the purposes for which any District was created have been accomplished, said District shall file a petition in district court for dissolution as provided in the Special District Act. In no event shall dissolution occur until the District has provided for the payment or discharge of all of its outstanding indebtedness and other financial obligations as required pursuant to State law. In addition, if within three (3) years from the date of the City Council’s approval of this Service Plan no agreement contemplated under Section IV.B of this Service Plan has been entered into by the City with any of the Districts and/or any Developer, despite the parties conducting good faith negotiations attempting to do so, the City may opt to pursue the remedies available to it under C.R.S. Section 32-1-701(3) in order to compel the Districts to dissolve in a prompt and orderly manner. In such event: (i) the limited purposes and powers of the Districts, as authorized herein, shall automatically terminate and be expressly limited to taking only those actions that are reasonably necessary to dissolve; (ii) the Board of each of the Districts will be deemed to have agreed with the City regarding its dissolution without an election pursuant to C.R.S. §32-1- 704(3)(b); (iii) the Districts shall take no action to contest or impede the dissolution of the Districts and shall affirmatively and diligently cooperate in securing the final dissolution of the Districts, and (iv) subject to the statutory requirements of the Special District Act, the Districts shall thereupon dissolve. XVII. SANCTIONS Should any of the Districts undertake any act without obtaining prior City Council approval or consent or City Manager approval or consent as required in this Service Plan, that constitutes a material modification to this Service Plan requiring a Service Plan Amendment as provided herein or under the Special District Act, or that does not otherwise comply with the provisions of this Service Plan, the City Council may impose one (1) or more of the following sanctions, as it deems appropriate: A. Exercise any applicable remedy under the Special District Act; 12.2 Packet Pg. 225 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) 24 B. Withhold the issuance of any permit, authorization, acceptance or other administrative approval, or withhold any cooperation, necessary for the District’s development or construction or operation of improvements or provision of services; C. Exercise any legal remedy under the terms of any intergovernmental agreement under which the District is in default; or D. Exercise any other legal and equitable remedy available under the law, including seeking prohibitory and mandatory injunctive relief against the District, to ensure compliance with the provisions of the Service Plan or applicable law. XVIII. INTERGOVERNMENTAL AGREEMENT WITH CITY Each of the Districts and the City shall enter into an intergovernmental agreement, the form of which shall be in substantially the form attached hereto as Exhibit I and incorporated by reference (the “IGA”). However, the City and the Districts may include such additional details, terms and conditions as they deem necessary in connection with the Project and the construction and funding of the Public Improvements and the Public Benefits. Each of the Districts’ Boards shall approve the IGA at their first board meeting, unless agreed otherwise by the City Manager. Entering into this IGA is a precondition to each of the Districts issuing any Debt or imposing any Debt Mill Levy, Operating Mill Levy or Fee for the payment of Debt under this Service Plan. In addition, failure of any of the Districts to enter into the IGA as required herein shall constitute a material modification of this Service Plan and subject the District to the sanctions in Section XVII of this Service Plan. The City and the Districts may amend the IGA from time-to-time provided such amendment is not in conflict with any provision of this Service Plan. XIX. CONCLUSION It is submitted that this Service Plan, as required by C.R.S. Section 32-1-203(2), establishes that: A. There is sufficient existing and projected need for organized service in the Service Area to be served by the Districts; B. The existing service in the Service Area to be served by the Districts is inadequate for present and projected needs; C. The Districts are capable of providing economical and sufficient service to the Service Area; and D. The Service Area does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. XX. RESOLUTION OF APPROVAL The Districts agree to incorporate the City Council’s resolution approving this Service Plan, including any conditions on any such approval, into the copy of the Service Plan presented to the District Court for and in Larimer County, Colorado. 12.2 Packet Pg. 226 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) A-1-1 EXHIBIT A-1 LEGAL DESCRIPTION OF DISTRICT NO. 1 BOUNDARIES 12.2 Packet Pg. 227 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) A-2-1 EXHIBIT A-2 LEGAL DESCRIPTION OF DISTRICT NO. 2 BOUNDARIES 12.2 Packet Pg. 228 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) A-3-1 EXHIBIT A-3 LEGAL DESCRIPTION OF DISTRICT NO. 3 BOUNDARIES 12.2 Packet Pg. 229 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) B-1-1 EXHIBIT B-1 DISTRICT NO. 1 BOUNDARY MAP 12.2 Packet Pg. 230 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) B-2-1 EXHIBIT B-2 DISTRICT NO. 2 BOUNDARY MAP 12.2 Packet Pg. 231 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) B-3-1 EXHIBIT B-3 DISTRICT NO. 3 BOUNDARY MAP 12.2 Packet Pg. 232 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) C-1 EXHIBIT C VICINITY MAP 12.2 Packet Pg. 233 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) D-1 EXHIBIT D PUBLIC IMPROVEMENT COST ESTIMATES 12.2 Packet Pg. 234 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) E-1 EXHIBIT E PUBLIC IMPROVEMENT MAPS 12.2 Packet Pg. 235 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) F-1 EXHIBIT F FINANCIAL PLAN 12.2 Packet Pg. 236 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) G-1 EXHIBIT G PUBLIC BENEFITS 12.2 Packet Pg. 237 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) H-1 EXHIBIT H DISCLOSURE NOTICE 12.2 Packet Pg. 238 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) I-1 EXHIBIT I FORM OF INTERGOVERNMENTAL AGREEMENT 12.2 Packet Pg. 239 Attachment: Comparison of September 17 Service Plan with Current Version (8335 : Northfield Metro District Service Plan) Northfield Metro District Proposal: Landmark Homes Service Plan proposal to create a metro district of approximately 56 acres located north of Vine Street on the west side of Lindenmeier Road/Lemay Avenue (southeast of the Lake Canal and north of the to- be designated historic Alta Vista neighborhood). The developer proposes that metro district tax benefits make it easier for the Landmark Homes to create increased public benefits in the areas of infrastructure, smart growth, affordable housing, attainable housing, and building with environmental sustainability practices. This scan assumes that development would happen regardless of the Metro District and analyzes the impact of a metro district compared to a business-as-usual development scenario. Positive • Inclusion of solar panels on 40% of homes. Solar will help power the community center. • EV chargers will be installed in all homes. Negative • None Identified Positive • 85% of the homes will be priced at attainable price levels, targeting families making 80-120% of AMI, “the missing middle”. • Pricing structure will reduce costs of living in the community. • Additional housing at this level may impact workforce talent attraction and retention. • May promote additional redevelopment in that corridor along Vine and accelerating connectivity through Transfort. Negative • None Identified Positive • Build out of regional trail will help promote access to nature and physical activity. • Attainability and affordable housing in proximity to jobs may promote economic mobility. • Includes 15% of units designated and restricted affordable ownership product. • Attainable price point introduces more opportunity to enter homeownership and lock in stable housing cost. Negative • None Identified Tradeoffs • Development is located near the intersection of Vine/Lemay and will likely exacerbate existing traffic challenges. • While there are obvious benefits of affordable housing to economic and social sustainability, the environmental benefits proposed are not as strong as they could be. Mitigations • The Service Plan could benefit from committing to more specific environmental public benefits (e.g. DOE Net Zero Ready homes, LEED standards) and water conservation efforts. Key Alignment: NLSH 1.1: Improve access to quality housing that is affordable to a board range of income levels; ENV 4.1: Achieve Climate Action Plan (CAP) 2020 goals and continue progress toward the 2030 goals; ECON 3.4 - Foster infill and redevelopment that enhances the community. ATTACHMENT 3 • Impacts within environmental area are neutral to positive and largely indirect because Landmark Homes’ proposal demonstrates only some benefits to these areas. Their proposal could implement additional energy and water savings initiatives. • Economic impacts are driven mostly by the development pricing, as well as it’s proximity to major employers. • The social impacts were strongest, as they were more direct and positive due to the promise of 15% affordable for-sale housing and pricing of the remaining 85% at 80-120% AMI. 12.3 Packet Pg. 241 Attachment: Triple Bottom Line Summary (8335 : Northfield Metro District Service Plan) M EMORANDUM To: Josh Birks and Rachel Rogers Economic Health & Redevelopment, City of Fort Collins From: Dan Guimond and Elliot Kilham Economic & Planning Systems Subject: Northfield Metro District Market and Financial Review EPS #193074 Date: July 2, 2019 This memorandum summarizes Economic & Planning System’s (EPS) evaluation of the Financial Plan section of the Consolidated Service Plan (Service Plan) for the Northfield Metropolitan Service District (District). The City is required to approve the Service Plan for a Title 32 Metropolitan District prior to it being submitted for a vote by the electorate of the district. EPS’s third- party evaluation includes a review of the market and financial assumptions underlying the application as well as the feasibility of the District’s Financial Plan, including public revenue and bond proceed forecasts. The evaluation also reviews the proposal against the City’s metro district public benefit policy requirements. Development Program Northfield is a proposed 56.3-acre mixed-use community in North Fort Collins located west of North Lemay Avenue, southeast of the Lake Canal and north of East Vine Drive and the Alta Vista neighborhood, as shown in Figure 1. The District is proposed to be primarily a residential project with 442 housing units and approximately 2,700 square feet of commercial space. The residential component incorporates both for-sale and rental product, and the commercial component is oriented towards community serving retail and service uses. The project is estimated to be completed over the next six years. ATTACHMENT 4 12.4 Packet Pg. 242 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 2 Figure 1. Northfield Metro District Vicinity Map Diagram N W E S PROPOSED NORTHFIELD METRO DISTRICT 500 0 SCALE: 1" = 1000' 1000 12.4 Packet Pg. 243 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 3 The Developer provided a preliminary development program to D.A. Davidson, the District’s bond underwriter, as shown in Table 1. This preliminary program includes: • 40 stacked condos with a projected market value of $306,714. • 180 flats with a projected market value of $359,040. • 139 brownstones with a projected market value of $388,518. • 16 condominiums with a projected market value of $316,200. • 65 deed-restricted affordable condominiums with a projected market value of $265,200. • 2 studio apartments (for rent) with a projected market value of $200,000. • 2,679 square feet of commercial space with a projected market value of $225 per square foot. The District proposal suggests targeted uses for the commercial space include a daycare center, coffee shop, bike repair shop, or another community serving venture. Table 1. Proposed Northfield Development Program and Market Values Description Amount % Total Market Value Base $ ('20) Residential For-Sale Units $/Unit Stacked Condos 40 9% $306,714 Flats 180 41% $359,040 Brownstones 139 31% $388,518 Condominiums 16 4% $316,200 Affordable Condo (Deed-Restricted) 65 15% $265,200 Subtotal/Weighted Avg. 440 99.5% $348,175 Rental Units $/Unit MU - Studio Apts 2 0.5% $200,000 Subtotal/Weighted Avg. 2 0.5% $200,000 Total/Weighted Avg. 442 100% $347,504 Commercial Sq. Ft. $/Sq. Ft. Retail/Commercial 2,679 100% $225 Total/Weighted Avg. 2,679 100% $225 Source: DA Davidson; Economic & Planning Systems 12.4 Packet Pg. 244 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 4 The proposed buildout of the Northfield development is estimated to take place over a six-year period from 2020 to 2025, as shown in Table 2. In total, the Developer proposes to build an average of 74 residential units per year from 2020 to 2025. The proposed commercial development is projected to occur in 2022 as shown. The project is shown with the initial development focused on 34 residences in 2020 (12 stacked condominiums, 8 brownstones, 4 condominiums, and 10 deed restricted condominiums). The remaining 408 units, including the 2 for-rent studio apartments, are expected to be built the following five years (2021 to 2025). The last phase of the project is the final flats and brownstones built in 2023 to 2025. It is important to note that this preliminary program is used as inputs into D.A. Davidson’s estimate of bond proceeds and draft bond series offerings. As the basis for the Financial Plan, EPS focused its market assessment on these inputs. Table 2. Proposed Northfield Absorption Schedule Residential (Units) Apt. Stacked Brown- Condo- Affordable Commercial Description Studio Condos Flats stone miniums Condo [2] Total (Sq. Ft.) Year 2019 0 0 0 0 0 0 0 0 2020 0 12 0 8 4 10 34 0 2021 0 28 36 42 8 31 145 0 2022 2 0 45 40 4 24 115 2,679 2023 0 0 48 40 0 0 88 0 2024 0 0 45 9 0 0 54 0 2025 0 0 6 0 0 0 6 0 Summary Total 2 40 180 139 16 65 442 2,679 Average [1] 0 7 30 23 3 11 74 447 [1] Average betw een 2020 to 2025. [2] Deed-restricted affordable condo. Source: DA Davidson; Economic & Planning Systems 12.4 Packet Pg. 245 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 5 Metro District Proposal Summary The Service Plan proposes to form three separate metro districts. The districts will have the ability to impose an aggregate mill levy of 50 mills, which includes a Debt Mill Levy and an Operating Mill Levy. The operating mill levy can equal up to 50 mills until the District imposes a debt mill levy, at which point the operating mill levy cannot exceed 10 mills. While District levies are capped at 50 mills, the Service Plan allows for adjustments to the mill levies in the event that there are changes to the method of calculating assessed value or any other changes impacting the revenue generating capabilities of the District. In such cases, the District may increase or decrease mill levies to ensure that actual tax revenues generated are not diminished. This ability helps to further guarantee future revenue streams and reduce the risk for bond holders. The debt mill levy is expected to be used to finance public improvements listed in Exhibit D of the Service Plan. The financial projections are based on a debt mill levy of 40 mills for residential and commercial districts. In total, according to the Service Plan, the Developer anticipates issuing approximately $16 million in debt to fund a portion of these public improvement costs. The Developer’s engineering consultant estimates that the total cost of the public improvements will be approximately $31 million. Metro District Policy In August 2018, the City updated its policy originally adopted in 2008 for reviewing proposed metro district service plans. The new policy removes previous limitations for metro district to be 90 percent commercial and not to be used to fund “basic infrastructure improvements normally required from new development.” In their place, the policy requires that developers deliver “extraordinary public benefits” to the city. In addition, the new policy increased the recommended maximum mill levy for both debt service and O&M to 50 mills—up from 40 mills in the 2008 resolution. The proposed Northfield maximum aggregate mill levy of 50 mills is in-line with this recommended maximum mill levy. The Public Benefits section of this memo provides more detailed information on the proposed public benefits provided by the development. 12.4 Packet Pg. 246 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 6 Market Assessment This section reviews market values and buildout/absorption assumptions used to estimate the potential public financing revenues and debt capacity of the project, as described in the proposed Financial Plan. The section is organized into the residential and commercial land uses. The residential section further delineates between for-sale and rental product, while the commercial section outlines proposed retail uses. Residential To help determine their reasonableness, EPS compared the market value assumptions used in the Financial Plan’s debt capacity estimates with recent sales in Fort Collins. In addition, EPS compared Northfield’s proposed market values with other comparable developments in the Fort Collins area. For-Sale Market Values The Developer’s proposed market values fall near the average of recent sales in the Fort Collins market. The Fort Collins Board of Realtors (FCBR) reports that the average price of a single family home sold in Fort Collins through May 2019 was $467,303 and that the average price of a townhome/condominium was $308,640, as shown in Table 3. The Northfield proposal does not include single family housing. As a result, proposed market values are compared to the average price of townhomes/condos in the Fort Collins market. • Stacked Condos: The Financial Plan uses a market value of $306,714 or 0.6 percent less than the average of recent sales. As a result, the proposed values are in line with market averages. • Flats: The Financial Plan uses a market value of $359,040 or 16.3 percent higher than the average of recent sales. The market average sales price includes both new construction sales and sales of older, existing homes. A premium for new construction in Northfield is to be expected. Moreover, the recent average sales price includes condo sales, which may bring down the average when looking at a flat, which is closer to a townhome. While perhaps higher than average, in EPS’s professional experience, the market values are within an acceptable range. In particular, a market value higher than the average of recent sales for townhomes but lower than the average for single family homes is reasonable. • Brownstones: The Financial Plan uses a market value of $388,518 or 25.9 percent higher than the average of recent sales. Brownstones are typically categorized as townhomes, however they offer features more similar to single family homes. Similar to flats, a market value higher than the average of recent sales for townhomes but lower than the average for single family homes is reasonable. • Condominiums: The Financial Plan uses a market value of $316,200 or 2.4 percent higher than the average of recent townhome/condo sales. As a result, the proposed values are in line with market averages. 12.4 Packet Pg. 247 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 7 • Deed-Restricted Condos: The Financial Plan uses a market value of $265,200 or 14.1 percent less than the average of recent sales. As a result, the proposed values are in line with market averages. Table 3. Proposed Northfield Market Values Compared to Fort Collins Average Prices This section also compares Northfield to other recent for-sale residential projects in the North Fort Collins market area. This comparison reveals that Northfield’s price points for townhomes and condos largely overlap with the price ranges proposed in recent residential projects, as shown Table 4 and Figure 2. Table 4. For-Sale Residential Projects in the North Fort Collins Market Description Stacked Condos Flats Brownstones Condominiums Deed-Restricted $306,714 $359,040 $388,518 $316,200 $265,200 $308,640 $308,640 $308,640 $308,640 $308,640 Difference -$1,926 $50,400 $79,878 $7,560 -$43,440 % Difference -0.6% 16.3% 25.9% 2.4% -14.1% Source: DA Davidson; FCBR; CoStar; Economic & Planning Systems Average Price (May 2019 YTD) Service Plan (Base $ '20) Project IStatus Project Start Product Units Price Compable Projects Single Family $350,000-$1,300,000 Townhomes $450,000-$550,000 Condos $150,000-$450,000 Single Family 18 $575,000-$600,000 Townhomes 37 $460,000-$500,000 Single Family 567 $400,000-$530,000 Townhomes 110 $330,000-$430,000 Condos 192 $330,000-$400,000 Brownes on Howes Complete 2016 Townhomes 6 $750,000-$1,000,000 Single Family -- Townhomes -- Condos -- Townhomes at Library Park Complete 2017 Townhomes 10 $1,195,000-$1,500,000 The Park at Fossil Ridge Complete 2017 Townhomes 23 $356,000-$415,000 Northfield Condos $265,000-$316,000 Townhomes $350,000-$390,000 [1] Total housing units for all product types. Source: Zillow; CoStar; FCBR; DA Davidson; Economic & Planning Systems Service Plan Proposed 2020 442 [1] Montava Planning Review-Round 4 2020 4,200 [1] Old Town North Third Phase 2007 450-500 [1] Revive Under Construction 2015 Mosaic (formerly Eastridge) Under Construction 2016 12.4 Packet Pg. 248 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 8 Figure 2. Price Range in Comparable Residential Projects and Northfield Rental Housing Market Values The Northfield Financial Plan assumes that the average value for apartments in the development will have a market value of $200,000 per unit. To benchmark this assumption, EPS compared it to the historical five-year average sales price per unit of apartments in Fort Collins and to the capitalized value of apartments. Capitalized value was calculated by dividing the five-year average rent by the five-year average capitalization rate in the Fort Collins market. As shown in Table 5, the five-year average sales price was approximately $179,000 per unit or 11 percent less that the market value assumption, and the capitalization value was approximately $301,000 or 51 percent more than the market value assumption. As a result of these comparisons, EPS concludes that the market value used in the Financial Plan falls within an acceptable range and is appropriate. Table 5. Market Rate Apartment Market Value Comparison $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Old Town North Mosaic (formerly Eastridge) Brownes on Howes Townhomes at Library Park Northfield Price Range NorthfieldAverage Sales Price Capitalized Northfield Description Per Unit [1] Value [2] Assumption Apartment Market Value ($/Sq. Ft.) $178,844 $301,154 $200,000 % Difference [3] 11% -51% 0% [1] 5-year average sales price per unit. [3] Percent difference from the market value assumption. Source: CoStar; Economic & Planning Systems [2] Capitalized value equals the 5-year average rent divided by the 5-year average capitalization rate. 12.4 Packet Pg. 249 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 9 Absorption EPS compared the planned buildout to forecast future demand for specific housing products. We calculated future housing demand as part of our work on the update to Fort Collins City Plan, organizing these estimates into low density (single family homes), middle density (2- to 20-unit buildings), and high density (20 or more unit buildings) housing products. More detail on EPS’s housing demand estimate is shown in Table 8 on the following page. Based on this comparison, EPS calculated an implied capture rate by Northfield to gain a perspective on the size and reasonableness of the proposed building plan. From 2016 to 2040, EPS estimates that there will be a demand of 570 low density units, 254 middle density units, and 446 high density units per year, for a total annual average of 1,270 units. In comparison, the Developer proposes to develop the Northfield project at an average of 74 middle density units (multifamily and townhomes) per year from 2020 to 2025. This development schedule implies a capture rate of approximately 30 percent for middle density units. A capture rate of 30 percent is a significant portion of the residential development market in the Fort Collins market. However, the fact that the development is targeting the middle of the market in terms of prices and has a variety of housing types should help it attract a wider market demand segment. Implied Affordability of Deed Restricted Condo To understand the affordability benefits offered by the proposed deed restrict condos, EPS calculated the household income needed to afford the market value of the unit, assuming 30 percent of this income is dedicated to housing, as shown in Table 6. EPS calculated an income of approximately $49,000 was needed. To put this in perspective, this is under 60 percent of the area median income (AMI) for a family of four in Larimer County and approximately equal to 70 percent of the AMI for a family of two. Table 6. Household Income Implied by Deed Restricted Unit Description Units Amount Market Value $ $265,200 Mortgage Payment Term years 30 Down Payment % 10.00% Interest Rate % 4.50% Mortgage Payment $/year $14,653 Income Calculation Housing Costs % Income 30% HH Income $/year $48,843 Source: DA Davidson; Economic & Planning Systems 12.4 Packet Pg. 250 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 10 Ultimately, Northfield’s ability to meet this implied capture rate will depend on the size of the pipeline and its competitive position against other projects. There are currently a number of proposed large-scale residential developments in North Fort Collins, including Mulberry, Waterfield, Water’s Edge, and Montava that will compete with Northfield. However, North Fort Collins is one of the few remaining growth areas of the city, meaning it may have less competition from other areas of the city. The Fort Collins market is also a very attractive area that competes regionally and even nationally. Finally, in the past, growth may have been constrained by supply. Table 7. Northfield Development Implied Residential Capture Rate Table 8. Fort Collins City Plan Future Housing Demand Estimates, 2016-2040 Northfield Fort Collins Implied Description Average Annual Avg [2] Capture % [3] 2016-2040 Middle Density [1] 74 254 29% Subtotal 74 254 29% [2] Annual average from CityPlan housing demand forecast completed by EPS. [3] Capture % = Northfield Average / Fort Collins Average. Source: Economic & Planning Systems [1] Based on definitions from the CityPlan estimate, middle density includes tow nhomes and multifamily homes. Description Amount % Total Amount % Total Total Ann. # Ann. % Low Density 42,254 66% 55,926 59% 13,672 570 1.2% Middle Density 14,891 23% 20,998 22% 6,108 254 1.4% High Density 6,590 10% 17,296 18% 10,706 446 4.1% Total 63,735 100% 94,220 100% 30,485 1,270 1.6% Source: Economic & Planning Systems 2016 2040 2016-2040 12.4 Packet Pg. 251 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 11 Commercial Development The Northfield Financial Plan assumes that the commercial space in the development will have an average value of $225 per square foot. To benchmark this assumption, EPS compared it to the historical five-year average sales price per square foot of retail space in the Fort Collins market and to the capitalized value of retail and office space. Capitalized value was calculated by dividing the five-year average rent per square foot by the five-year average capitalization rate for the respective product types, as shown in Table 9. The five-year average sales price was $200 per square foot or 11 percent less than the market value assumption used in the Financial Plan, and the capitalized value was approximately $255 per square foot or 13 percent higher than the market value. As a result of these comparisons, EPS concludes that the market value used in the Financial Plan is relatively moderate and generally within a range set by the sales price and capitalized value benchmarks. Table 9. Retail Market Value Comparison Absorption Northfield proposes to build a total of 2,680 square feet of community serving retail. EPS finds that this is a reasonable amount of retail for a development of this size. To help provide context, EPS benchmarked Northfield’s proposed retail development against historic retail development in the city to calculate an implied capture rate, as shown in Table 10. Over the last 11 years, from 2006 to 2017, the city delivered an average 127,365 square feet of retail space per year. As a result, the Northfield proposal implies a capture rate of 2.1 percent relative to the historic annual average. Table 10. Northfield Development Implied Retail Capture Rate Sales Price Capitalized Northfield Description Per Sq. Ft. [1] Value [2] Assumption Retail Market Value ($/Sq. Ft.) $200.00 $255.07 $225.00 % Difference [3] 11% -13% 0% [1] 5-year average sales price per sq. ft. [3] Percent difference from the market value assumption. Source: CoStar; Economic & Planning Systems [2] Capitalized value equals the 5-year average rent divided by the 5-year average capitalization rate. Northfield Fort Collins Northfield Description Annual Avg Annual Avg Capture % 2019-2027 2006-2017 Retail 2,680 127,365 2.1% [1] Capture % = Northfield / Fort Collins Average. Source: City of Fort Collins; Economic & Planning Systems 12.4 Packet Pg. 252 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 12 Metro District Competition in North Fort Collins Northfield is one of five major planned developments in North Fort Collins, all proposing metro districts (others include Mulberry, Montava, Water’s Edge, and Waterfield). At buildout (from 2018 to 2042), the four proposed districts are projected to result in 7,853 additional housing units. This is 26 percent of the estimated growth of approximately 30,500 households in Fort Collins from 2016 to 2040, as shown in Table 8. Given that North Fort Collins is one of the few remaining growth areas in the city, an expected capture rate of 26 percent is not unreasonable. However, on a year-to-year basis the four developments will compete for absorption. If the developments happen to each deliver a large number of units at the same time, it may take months or even years for these units to be absorbed. This will in turn impact the bond revenue projections of the four districts. Figure 4 below compares the combined estimated residential buildout of each of the districts with the total average annual growth rate for the city in Table 8. The figure illustrates that while from 2019 to 2042 the four districts will need to capture 24 percent of total growth, in certain years the buildout schedules imply a much higher capture rate, including 107 percent in 2021. Figure 3. Implied Capture Rate Four Metro Districts 7% 40% 107% 58% 50% 39% 73% 40% 25% 28% 20% 20% 10% 11% 20% 19% 9% 9% 8% 9% 6% 0% 6% 6% 0% 20% 40% 60% 80% 100% 120% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Northfield Metro District Market and Financial Review Page | 13 Financial Analysis The Service Plan proposes to issue metro district revenue bonds to pay for eligible public improvements. This section reviews proposed public improvement costs and the revenue and debt estimates described in the metro district Service Plan. Public Improvement Costs The Developer provided the preliminary public improvement cost estimates in Exhibit D of the Service Plan. Overall, public improvements associated with the development are estimated to be approximately $31 million, as shown in Table 11. The Developer grouped the improvements into two categories, $21 million in “Basic” infrastructure costs and $10 million in “Non-basic” costs. • Basic: The Developer included the following items in the estimate of Basic public improvements: grading, roadway, potable waterline, sanitary sewer, and storm drainage improvements; open space, parks, and trails; and administrative/design/ permitting, and contingency costs. The Basic improvements generally include in-tract improvements that are normal costs of development. • Non-basic: The Developer included the following items in its Non-basic infrastructure: arterial upsizing and private drive construction, sanitary sewer upsizing, park and other amenities including a community pool and clubhouse. The Non-basic improvements include some off-site improvements such as arterial and sewer upsizing. Some of these costs categorized as Non-basic should not necessarily be categorized as public improvements. For example, the non-basic infrastructure includes $2 million for a community pool and clubhouse. It is unclear from the Service Plan how this will be open to and serve the public and wider Fort Collins community. However, it will be an amenity to the development, and help both attract buyers and add value. As a result, it likely should not count as a public benefit. The Developer proposes to issue debt generating approximately $13 million in project proceeds, as shown in Table 11. This debt would cover approximately 41 percent of the total public improvement costs. The Developer would need to cover the remaining $18.3 million with other funds. 12.4 Packet Pg. 254 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 14 Table 11. Public Infrastructure and Estimated Costs Description Basic % Non-Basic % Total % Total Public Improvement Costs Grading/Miscellaneous $6,697,000 32% $0 0% $6,697,000 21% Roadway Improvements $3,122,630 15% $3,278,240 31% $6,400,870 20% Potable Waterline Improvements $617,400 3% $0 0% $617,400 2% Sanitary Sewer Improvements $148,400 1% $538,220 5% $686,620 2% Sorm Drainage Improvements $1,889,100 9% $0 0% $1,889,100 6% Open Space, Parks, and Trails $1,010,000 5% $3,047,850 29% $4,057,850 13% Admin./Design/Permitting/Etc. $3,777,000 18% $1,923,000 18% $5,700,000 18% Contingency (20%) $3,452,310 17% $1,757,465 17% $5,209,775 17% Total $20,713,840 100% $10,544,775 100% $31,258,616 83% Metro District Project Funds Series 2020 $7,098,194 55% Series 2030 $5,829,489 45% Total $12,927,683 100% Source: Highland Development Services; Economic & Planning Systems 12.4 Packet Pg. 255 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 15 Revenue Estimates Proposed Mill Levies and Facility Fee The proposed maximum District mill levy of 50 mills is relatively common and within the distribution of similar metro districts in Colorado. The 50 mills would be added to the existing property tax levy of 91.139 mills and increase the property tax burden. Based on information in the Financial Plan and D.A. Davidson’s bond projections, the Developer plans to charge 50 mills (40 mills as debt levy and 10 mills for operations) to the District. For the residential portion of the property, the maximum District mill levy of 50 mills would result in an average of $1,242 per year or $104 per month of additional cost to the tenant. For the commercial portion of the property, the 50 mills would result in an average of $3.26 per square feet of additional property tax cost per year, as shown. Table 12. Metro District Mill Levies Market Assessed Property Tax Description Value Value Existing District Total Residential (Units) 7.15% 91.139 mills 50.000 mills 141.139 mills Stacked Condos $306,714 $21,930 $1,999 $1,097 $3,095 Flats $359,040 $25,671 $2,340 $1,284 $3,623 Brownstones $388,518 $27,779 $2,532 $1,389 $3,921 Value Condo $316,200 $22,608 $2,060 $1,130 $3,191 Affordable Condo (Deed-Restricted) $265,200 $18,962 $1,728 $948 $2,676 MU - Studio Apts $200,000 $14,300 $1,303 $715 $2,018 Weighted Average $347,504 $24,847 $2,264 $1,242 $3,507 % Total 65% 35% 100% Commercial ($/SF) 29.00% 91.139 mills 50.000 mills 141.139 mills Retail/Commercial $225 $65 $5.95 $3.26 $9.21 % Total 65% 35% 100% Source: DA Davidson; Economic & Planning Systems 12.4 Packet Pg. 256 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 16 Public Revenue Forecasts and Bond Proceeds D.A. Davidson estimates that the metro district will generate a total of approximately $50 million in revenues from debt mill levy collections, as shown in Table 13. The market value and absorption assumptions described in the Market Assessment section of this memorandum are the main drivers of these revenue estimates. A reduction in the proposed market values for the residential and commercial development and/or extended buildout and absorption schedule will reduce the total bond proceeds. The underwriting process and bond structure include reserve funds and capitalized interest mitigate difference between forecasted and actual values relating to market values, buildout schedule, and other variables. These public revenues will be used to issue two bond series, one in 2020 and one in 2030 to generate approximately $13 million that can be used to reimburse the Developer for infrastructure expenditures related to the public improvements. Table 13. Northfield Metro District Public Revenue and Project Funds Description Series 2020 Series 2030 Total Public Revenues Par Value $10,020,000 $14,870,000 $24,890,000 Interest $12,021,750 $13,214,800 $25,236,550 Total $22,041,750 $28,084,800 $50,126,550 Project Proceeds Par Value $10,020,000 $14,870,000 $24,890,000 Other Source of Funds [1] $0 $1,073,406 $1,073,406 Refunding Escrow Deposits [2] $0 -$9,790,000 -$9,790,000 Capitalized Interest Fund -$1,503,000 -$49,567 -$1,552,567 Debt Service Reserve Fund -$918,406 $0 -$918,406 Cost of Issuance -$300,000 -$200,000 -$500,000 Unerwriter's Discount -$200,400 -$74,350 -$274,750 Total $7,098,194 $5,829,489 $12,927,683 [1] Funds on hand and previous series reserve funds. [1] Refinancing previous series and paying off principal of the bond. Source: DA Davidson; Economic & Planning Systems 12.4 Packet Pg. 257 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 17 Public Benefits The City’s policy for reviewing metro districts supports the formation of a district “where it will deliver extraordinary public benefits that align with the goals and objectives of the City.” The policy goes on to define four focus areas or types of benefits that meet this policy as follows: • Environmental Sustainability Outcomes – defined as public improvements that provide environmental benefits including reduction in greenhouse gases, water or energy conservation, community resiliency against natural disasters, renewable energy capacity, and/or other environmental outcomes. • Critical Public Infrastructure – public improvements that address significant infrastructure needs previously identified by the City. • Smart Growth Management – public improvements that facilitate design that increases development density, enhances walkability, increases the availability of transit or multimodal facilities, and/or encourages mixed use development patterns. • Strategic Priorities – public improvements that address City priorities including affordable housing, infill or redevelopment, and economic health improvements (e.g., job growth business retention, or construction of a missing economic resource). Exhibit G of the Service Plan describes the proposed public benefits of the Northfield project. The Developer is able to provide these public benefits in part due to the District bonds that reimburse the Developer for public improvement costs. More specifically, by reimbursing basic infrastructure investments typically associated with development with District bond proceeds, the Developer is able to invest more money into public benefits the City views as priorities. The Service Plan describes a number of public benefits for the project. These include creating a New Urbanist community with low-impact development features. They also include: • Critical Public Infrastructure – including construction of Suniga Road as an arterial road and off-site sewer improvements. • Parks, Open Space, and Trails – including a community pool, regional trail delivery, and 26 acres of parks and green spaces covering approximately 46.9 percent of the entire project. • Affordable Housing – approximately 15 percent of units sold at 80 percent of the area median income (AMI) or lower. • Attainable Housing – by offering the remaining housing units between 80 percent and 120 percent of AMI. 12.4 Packet Pg. 258 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 18 • Environmental Sustainability – including a commitment to 14 kW of solar capacity per “Flats” building, 240V outlets in every garage (excluding the affordable homes) for electric vehicle fast-charging stations, and using an estimated 7.63 gallons of water per square foot, well below the City’s limit of 15 gallons of water per square foot. • Smart Growth Management – including enabling stretch outcomes in other categories by keeping density at 8 units per acre, despite qualifying for a density of 12 units per acre through Northfield’s classification as an “affordable housing project.” Table 14 shows the Developer’s estimates of the value for different public benefits in the four focus areas outlined by the City. Overall, the Developer estimates that the District is providing approximately $17 million of public benefits. This amount is greater than the total estimated bond proceeds of approximately $13 million. Overall, the Service Plan does not guarantee the delivery of public benefits. Public benefits will have to be vetted and guaranteed through additional approval steps for the metro district, including approval of the development plan. After reviewing the Service Plan’s description of public benefits, EPS finds that it is difficult to determine whether certain District features should be categorized as a public benefit for the wider community or if they are arguably more appropriately categorized as an amenity for future homebuyers—thus not a benefit to the public at large. This is particularly true for the benefits described below, which the Developer has listed under the Smart Growth Management category. • Clubhouse and Swimming Pool: The Developer has included $2 million in cost for the construction of a clubhouse and swimming that potentially will primarily serve residents of the development. While the Developer gestures at benefits to the wider community, the clubhouse will definitely serve as an amenity for residents and will in turn increase home values. • Reduction in Allowed Density/More Open Space: The Developer includes a reduction in density from 12 dwelling units per acre to 8 dwelling units per acre, which the Developer values at approximately $4.5 million. This reduction in density increases the amount of open space in the project. However, while the Developer plans to use some increased open space as a buffer to the Lake Canal Wetlands, much of it will be spread throughout the development. While this open space may have some environmental benefits, including benefits for stormwater drainage, it does not preserve habitat. Instead, similar to the clubhouse and swimming pool, this open space will serve as an amenity to the project, presumably increasing home values. In addition, smart growth policies are more often associated with increases in density not reductions. Finally, how the Developer determined the value of this amenity is not substantiated. 12.4 Packet Pg. 259 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Northfield Metro District Market and Financial Review Page | 19 • Increased Landscaped Area: The Developer includes increased landscaped area with an estimated cost of approximately $720,000 as a public benefit. Again, this increased landscape area serves as an amenity to the development. It is unclear how landscaped areas would count as “a compelling public space”—an example of benefit listed in the City’s policy. Table 14. Northfield Development Public Benefit Estimates Description Category Benefit % Total Enivronmental Sustainability 13-14 kW of solar power per "Flats" building Solar Energy $448,000 2.66% 240 V outlets Electric Vehicles $375,000 2.22% EV charging stations Electric Vehicles $30,000 0.18% Subtotal $853,000 5.06% Critical Public Infrastructure On-Site Suniga Road Upsizing Major Arterial Development $1,682,640 9.98% Off-Site Suniga Road Major Arterial Development $774,800 4.59% Regional Trail Construction Pedestrian Connectivity $199,050 1.18% Off-Site Sewer Construction and Upsizing Off-Site Infrastructure $538,220 3.19% Lemay Overpass Contribution Off-Site Infrastructure $250,000 1.48% Subtotal $3,444,710 20.42% Smart Growth Management Alley-Loaded Homes Increased Density $820,800 4.87% Reduction in Allowed Density/ More Open Space Public Spaces $4,474,100 26.53% Clubhouse and Swimming Pool Public Spaces $2,000,000 11.86% Increased Landscaped Area (46.9% of site) Public Spaces $723,800 4.29% Alta Vista Buffer Area Public Spaces $125,000 0.74% Public Amenity Area Public Spaces $5,000 0.03% Subtotal $8,148,700 48.31% Strategic Priorities 14.7% (65 units) of deed-restricted affordable housing Affordable Housing $4,420,000 26.21% 85.3% (377 units) of attainably priced housing Attainable Housing N/A [1] N/A [1] Subtotal $4,420,000 26.21% TOTAL $16,866,410 100% Source: Landmark Homes; Economic & Planning Systems [1] Developer did not provide an estimate for value of attainable housing due to the variability in pricing of housing in a range betw een 80% and 120% of AMI 12.4 Packet Pg. 260 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) Economic & Planning Systems Page | 20 Summary and Conclusions • Proposed Mill Levies: The proposed Northfield maximum aggregate mill levy of 50 mills is equal to the maximum allowed under the City’s current metro district policy. • Market Values: EPS generally finds that the market values used in the public revenue estimates to be reasonable. These assumptions align with market averages, given a new construction premium, and the residential market values are comparable to other recent developments in North Fort Collins. • Affordable and Attainable Housing: EPS finds that the deed-restricted affordable condos are priced at or below 80 percent of AMI. The planned market rates units are also currently priced towards the middle of the market and should be affordable for someone earning between 80 and 120 percent of the AMI—so called “attainable” housing.” However, it is important to note that only the deed-restricted affordable units have guaranteed affordability. Other units will be priced based on the market. • Residential Absorption: Overall, EPS finds that Northfield’s proposed absorption is reasonable. Housing is priced toward the middle of the market and includes a number of different housing options, which will attract a wider market demand segment. However, Northfield will need to compete with other residential developments planned for North Fort Collins, including Mulberry, Waterfield, Water’s Edge, and Montava. The fact that North Fort Collins is one of the only remaining growth areas of the city should help each of these developments achieve a significant market share. However, in aggregate, the cumulative absorption of these large developments may exceed overall market demand and result in slower absorption for one or more of the projects. • Public Benefits: As outlined in Exhibit G Public Benefits, the Service Plan proposes a number of public improvement that potentially meet the City’s proposed metro district criteria for extraordinary public benefits. The estimated value of these benefits is greater than the estimate project fund proceeds from a bond issuance. However, there are at least three public benefits for which the categorization as a public benefit is questionable and/or the value is either unsubstantiated, including Clubhouse and Swimming Pool, Reduction in Allowed Density/More Open Space, and Increased Landscaped Area. 12.4 Packet Pg. 261 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) METRO DISTRICTS COMBINED VICINITY MAP Waterfield Mulberry Montava Water’s Edge Phase 1 & 2 Northfield ATTACHMENT 5 12.5 Packet Pg. 262 Attachment: Combined Vicinity Map (8335 : Northfield Metro District Service Plan) Designed for your lifestyle. Built to last. ATTACHMENT 6 12.6 Packet Pg. 263 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District Area Map  15-minute walk to Old Town Square  Walk/Bike to many of the top employment centers in Fort Collins 12.6 Packet Pg. 264 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District Recap of Public Benefits:  Affordable Homes: At least 65 units (14.7%) priced at 60% AMI average (for-rent)  Attainable Homes: The remaining 377 units will be priced in an attainable range $290,000 - $440,000  Energy Efficiency: LEED Gold Standard  Heat recovery ventilator (HRV) Systems  HERS energy ratings ranging from 35-49  Solar Panels and EV charging locations  Connectivity: Onsite Regional Trail will be built for the city  15-min walk to Old Town Fort Collins and many top employment hubs  One of the last infill sites this close to Downtown Fort Collins  Critical Public Infrastructure: Replacement and upsizing of a dilapidated offsite sewer line and construction of a major 4-lane arterial road, Suniga Road.  Community Areas: A clubhouse and swimming pool as well as 26 acres of parks and open spaces. 12.6 Packet Pg. 265 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District New Public Benefits: Affordable Homes: • LEED Gold Standard Will Apply Including ~1kW of Solar on Every Home • Preliminary Plans Show Mercy’s Intent to Increase Density to 96 Units! (20.3%) *Subject to City Planning Approval* • Northfield still commits to at least 65 units (14.7%) of affordable at 60% AMI average Conceptual Site Plan – Subject to change 12.6 Packet Pg. 266 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District Many cities consider “attainable housing” be to between 80% - 120% of HUD’s Area Median Income (AMI). HUD Area Median Incomes Fort Collins AMI Ranges (Set by HUD) People Per Household 120% AMI Median (100%) 80% AMI 60% AMI 1 $ 73,320 $ 61,100 $ 48,850 $ 36,660 2 $ 83,760 $ 69,800 $ 55,800 $ 41,880 3 $ 94,200 $ 78,500 $ 62,800 $ 47,100 4 $ 104,640 $ 87,200 $ 69,750 $ 52,320 5 $ 113,040 $ 94,200 $ 75,350 $ 56,520 6 $ 121,440 $ 101,200 $ 80,950 $ 60,720 12.6 Packet Pg. 267 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District 2‐Bed "Residence" Condo 3‐Bed "Brownstone" Townhome Sales Price $ 300,000 $ 440,000 Monthly Expenses: Mortgage $ 1,402 $ 2,056 Property Taxes (91 mills) $ 163 $ 239 Metro Dist Tax (50 mills) $ 89 $ 131 Insurance $ 75 $ 110 Utilities (w/solar) $ 30 $ 44 Building Maintenance $ 150 $ 150 Total Monthly Cost $ 1,819 $ 2,598 Annual Cost $ 21,830 $ 31,178 Annual Salary Required $ 57,448 $ 82,046 Targeted Household Size 3 People 4 People 80% ‐ 120% Income Range $62,800 ‐ $94,200 $69,750 ‐ $104,640 Attainable Housing Case Studies for Northfield Floorplans: Remaining 377 units (85.3%) of homes fit well within the attainable price range Northfield Base Sales Prices Row Houses $305,000 ‐ $325,000 Residences $290,000 ‐ $305,000 Flats $295,000 ‐ $395,000 Brownstones $390,000 ‐ $440,000 Highest Priced Floorplan 12.6 Packet Pg. 268 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District Public Improvements Estimated Cost of Public Improvements  $30,101,665 Debt Details  Total Debt of Districts shall not exceed: $16,000,000  Amount of bond issuance depends on many factors including, but not limited to:  When we bond  Interest Rates  Absorption  Bond market fundamentals  Based on the factors above in today’s market, we will likely raise funds at an amount well below our $16,000,000 cap. 12.6 Packet Pg. 269 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District Public Benefits Total Benefit Per‐Unit Benefit Smart Growth Management Increased Density 1) Alley‐Loaded Homes $820,800 $1,857 Public Spaces 1) Reduction in Allowed Density/ More Open Space $4,474,100 $10,122 2) Clubhouse & Swimming Pool $2,000,000 $4,525 3) Increased Landscaped Area (46.9% of site) $723,800 $1,638 4) Alta Vista Buffer Area $125,000 $283 5) Public amenity area $5,000 $11 Strategic Priorities Affordable Housing 1) 14.7% (65 units) of deed‐restricted affordable housing $4,420,000 $10,000 Attainable Housing 1) 85.3% (377 units) of attainably priced housing Difficult to Quant. Difficult to Quan. Total Benefit Per‐Unit Benefit TOTAL PUBLIC BENEFITS $19,966,470 $45,173 Total Benefit Per‐Unit Benefit Environmental Sustainability Energy Efficient Neighborhood 1) LEED Gold Certification $1,933,750 $4,375 2) Energy Recovery Ventilator (ERV) Systems $645,000 $1,459 Solar Energy 1) Appoximately 1 kW of Solar Per Unit $1,219,310 $2,759 Electric Vehicles 1) 240V wiring and outlets $375,000 $848 2) EV charging stations $30,000 $68 Critical Public Infrastructure Major Arterial Development 1) On‐Site Suniga Road Upsizing $1,682,640 $3,807 1) Off‐Site Suniga Road $774,800 $1,753 Pedestrian Connectivity 1) Regional Trail Construction $199,050 $450 Off‐Site Infrastructure 1) Off‐Site Sewer Construction & Upsizing $538,220 $1,218 12.6 Packet Pg. 270 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District Conclusion A Metro District Allows Us To Deliver a HUGE Benefit To The Community: WITH METRO DISTRICT WITHOUT METRO DISTRICT At least 65 affordable homes at 60% AMI average No affordable homes LEED Gold No green building certifications Solar panels on every home No solar panels 4-lane arterial built that alleviates many traffic concerns Financing for 4-lane arterial in question Critical public infrastructure such as a sewer line and regional trail Financing for critical public infrastructure in question Overall lower pricing to accommodate missing middle Prices will need to rise to make up shortfall District takes care of ongoing site operations and maintenance Residents burdened with fees for site operations and maintenance 12.6 Packet Pg. 271 Attachment: Northfield September 25, 2019 PowerPoint Presentation (8335 : Northfield Metro District 1 Northfield Metro District Request Preview October 1, 2019 Josh Birks ATTACHMENT 7 12.7 Packet Pg. 272 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Project Description • 6+ Year Multi Phase Master Planned Project • 442 Residential Units • 14.7% affordable 2 12.7 Packet Pg. 273 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Policy Evaluation & Public Benefits Environmental Sustainability GHG Reduction Water/Energy Conservation Multimodal Transportation Enhance Resiliency Increase Renewable Capacity Critical Public Infrastructure Existing significant infrastructure challenges On-site Off-site Smart Growth Management Increase density Walkability/Pedestrian Infrastructure Availability of Transit Public Spaces Mixed-Use Strategic Priorities Affordable Housing Workforce Housing Infill/Redevelopment Economic Health Outcomes 3 12.7 Packet Pg. 274 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Comparison of Prior to Current Service Plan 4 Sept. 17th Oct. 1st Service Plan Service Plan LEED Gold Certification on market rate units LEED Gold Certification on ALL units HERS Certification on market rate units (avg 35-49) HERS Certification on ALL units (avg 35-49) Affordable units at 80% or below AMI Affordable units at average of 60% AMI Solar Power on market rate units Solar Power on ALL units 12.7 Packet Pg. 275 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) LEED Certification 5 Northfield Metro District Homes (all homes): • All units must meet LEED Gold certification. • The Green Insight has been engaged to achieve this certification and will inspect throughout the building. 12.7 Packet Pg. 276 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) HERS Certification Northfield Metro District Homes (all homes): • Increased energy efficient building materials and methods will increase the energy efficiency of the homes. • Landmark will contract with a green energy consultant to ensure the buildings are constructed according to energy efficient standards and that official HERS scores are certified upon completion. 6 Average Fort Collins HERS Rating – 58 to 62 Average Proposed HERS Rating for All Housing – 35-49 12.7 Packet Pg. 277 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Energy Recovery Ventilator (ERV) Systems, Solar and EV Charging 7 • Energy recovery ventilator (ERV) systems on every market rate unit to improve air quality inside the homes. • Northfield plans to include solar panels on all units that will produce at least 1kW of power for each unit. Thus, a 12-unit building will have roughly 12kW of solar panels. • Northfield will also deliver a 240V outlet in every garage to provide a place for the electric vehicle fast-charging stations and further encourage residents to drive eco-friendly cars. 12.7 Packet Pg. 278 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Affordable Housing 8 Affordable units will be delivered under the following guidelines: • A minimum of 65 rental units (14.7%) will be affordable at average 60% AMI level. • Landmark has a signed LOI with Mercy Housing for-rent multifamily builder that has projects around the nation. • Units will be deed restricted for at least 20 years. • Enforceability added commitments. 12.7 Packet Pg. 279 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) 9 Backup Slides • Back-up Slides 12.7 Packet Pg. 280 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Policy Comparison – Key Provisions 10 Project Current Policy Mill Levy Caps 50 Mills 50 Mills Basic Infrastructure Partially To enable public benefit Eminent Domain Will Comply Prohibited Debt Limitation Will Comply 100% of Capacity Dissolution Limit Ongoing for O&M 40 years (end user refunding exception) Citizen Control Will Comply As early as possible Multiple Districts Yes Projected over an extended period Commercial/ Residential Ratio Residential N/A 12.7 Packet Pg. 281 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Public Improvements 11 Improvement Description Estimated Cost (millions) Earthwork and Grading Primarily grading $5.4 Roadway Improvements Roads, Parking Lots, Signage, Lighting $6.4 Water Improvements Waterlines $0.6 Sanitary Sewer Improvements Sewer infrastructure, including upsizing, both on- and off-site for the project $1.3 Storm Sewer Improvements Main infrastructure $1.9 Landscaping Regional Trail construction, neighborhood park development, development of clubhouse/pool, and other landscaping $4.0 Misc. / Amenity Engineering, inspection, and administrative costs $5.5 Contingency Costs Contingency (20% of construction) $5.1 Total $30.1 Sum is slightly off due to rounding. 12.7 Packet Pg. 282 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Attainable/Workforce Housing 12 Workforce Housing units is defined as units affordable to a household earning between 81 percent and 120 percent of AMI. Residential Units (2020 Base Price) Housing Type # Units Price Brownstones 139 $388,518 Flats 180 359,040 Value Condo 16 316,200 Stacked Condo 40 306,714 Deed Restricted Condo 65 265,200 Studio Rental 2 200,000 Total/Average 442 $347,504 12.7 Packet Pg. 283 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) Policy Evaluation & Public Benefits 13 Solar panels on every market rate unit. These buildings will feature a photovoltaic system that will produce at least 1kW of power for each unit. Thus, a 12-unit building will have roughly 12kW of solar panels. On-Site The Metro District will finance and deliver the on-site Regional Trail as well as the off-site pedestrian connection for the northeastern portion up to the intersection at Lemay Avenue and Conifer Street. Increase Density Alley load homes. Affordable Housing 15% of homes will be 80% AMI or less (65 units) with 20-year deed restriction. Northfield will commit all of the units to meeting LEED Gold certification. Northfield has engaged the environmental group The Green Insight to help achieve this certification and will be responsible for the inspections throughout the building process to ensure Northfield receives the LEED Gold certifications Workforce Housing The remaining 85.3% (377) of the total number of dwelling units will be priced for sale for someone making 80% to 120% of AMI for attainable housing option. Energy recovery ventilator (ERV) systems will also be installed on every market rate unit to improve air quality inside the homes. Vine & Timberline contributions Public Space Neighborhood parks; Clubhouse/Swimming pool. A Public Amenity Area would be next to the mixed-use building and offer amenities such as a dog-wash station, bike repair or pump station, or other similar public use features. All the homes will commit to HERS ratings ranging from 35 to 49. Interpretive Historical Park and Gateway Features bordering Alta Vista. 240V outlet in every garage Economic Health Northfield is located within walking 14 Triple Bottom Line Scan (TBL-S) Initial Results Key TBL-S Results • The proposed 15% affordable housing (65 units) would have positive impacts for both economic and social sustainability. • 85% of the homes will be priced at attainable price levels, targeting families making 80-120% of AMI, “the missing middle”. • Inclusion of solar panels on 40% of homes. Solar will help power the community center. Mitigation Strategies • Could benefit from committing to more specific environmental public benefits (e.g. DOE Net Zero Ready homes, LEED standards) and water conservation efforts. 12.7 Packet Pg. 285 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) -1- RESOLUTION 2019-101 OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS RECONSIDERING, REHEARING AND APPROVING THE CONSOLIDATED SERVICE PLAN FOR NORTHFIELD METROPOLITAN DISTRICT NOS. 1-3 WHEREAS, Title 32 of the Colorado Revised Statutes (“C.R.S.”) authorizes the formation of various kinds of governmental entities to finance and operate public services and infrastructure, including metropolitan districts; and WHEREAS, on February 5, 2019, City Council adopted Resolution 2019-016 approving the “City of Fort Collins Policy for Reviewing Service Plans for Metropolitan Districts” (the “Policy”) setting forth guidelines, requirements and criteria applicable to the City’s consideration of a metropolitan district service plan; and WHEREAS, pursuant to the provisions of Article 1 of Title 32 of the Colorado Revised Statutes (the “Special District Act”) and the Policy, Landmark Homes (the “Applicant”) has submitted an application to the City for the City Council to consider a Consolidated Service Plan (the “Service Plan”) for the Northfield Metropolitan District Nos. 1-3 (each a “District” and collectively the “Districts”); and WHEREAS, a copy of the Service Plan is attached as Exhibit “A” and incorporated herein by reference; and WHEREAS, the Districts will be organized to provide for the financing, planning, design, acquisition, construction, installation, relocation, redevelopment and operation and maintenance of all or a portion of certain public improvements, as more specifically described in the Service Plan; and WHEREAS, in accordance with the Policy, the Applicant has complied with the requirement for mailed notice of the City Council’s August 20, 2019, public hearing on the Service Plan, as evidenced by the “Certificate of Mailing of Notice of Public Hearing” attached as Exhibit “B” and incorporated herein by reference; and WHEREAS, the Applicant has also provided notice of the August 20, 2019, public hearing by publication as evidenced by the “Affidavit of Publication” attached as Exhibit “C” and incorporated herein by reference; and WHEREAS, on August 20, 2019, the City Council took action which, under Section 2.c. of City Council’s Rules of Procedure (May 21, 2019), continued its consideration of the Service Plan to its September 3, 2019, regular meeting; and WHEREAS, additional notice of this continued consideration was mailed by the Applicant on August 22, 2019, as evidenced in the “Certificate of Mailing of Public Hearing” dated August 27, 2019, attached hereto as Exhibit “D” and incorporated herein by reference, and Packet Pg. 286 -2- such notice was also published in the Coloradoan on August 24, 2019, as evidenced by the “Affidavit of Publication” attached as Exhibit “E” and incorporated herein by reference; and WHEREAS, at its September 3, 2019, the City Council adopted a motion to again continue the hearing on the Service Plan to be held at City Council’s September 17, 2019, meeting; and WHEREAS, on September 17, 2019, the City Council conducted its public hearing on the Service Plan, in which it reviewed the Service Plan and considered the testimony and evidence concerning it presented at the hearing; and WHEREAS, the Special District Act requires that any service plan submitted to the district court for the creation of a metropolitan district must first be approved by resolution of the governing body of the municipality within which the proposed district lies; and WHEREAS, a motion was made and seconded at the September 17, 2019, meeting to adopt Resolution 2019-092 to approve the Service Plan, but the motion failed by a vote of 3 in favor and 4 against; and WHEREAS, after that motion failed, the City Council adopted a motion directing City staff to prepare a resolution for Council to consider at its October 1, 2019, to adopt its findings, determinations and conclusions supporting denial of the Service Plan; and WHEREAS, at City Council’s adjourned September 24, 2019, meeting, Council adopted a motion to suspend City Council’s Rules of Procedure to allow it to consider a motion from any Councilmember to reconsider the motion by which Council voted down Resolution 2019-092 and to conduct a rehearing on the Service Plan at Council’s October 1, 2019, meeting; and WHEREAS, after so suspending the Rules of Procedures, the City Council adopted a motion to reconsider the motion by which it voted down Resolution 2019-092 and to conduct a rehearing of the Service Plan at Council’s October 1, 2019, meeting; and WHEREAS, the City Council conducted a rehearing on the Service Plan at its October 1, 2019, meeting and received additional testimony and evidence, which together with the September 17, 2019, hearing constitutes the public hearing in this matter; and WHEREAS, this included the Applicant presenting revisions to the Service Plan to address the City Council’s concerns that the affordable-housing units to be provided as public benefits under the Service Plan will also be designed and constructed to the same energy- efficiency standards as the Applicant’s market-rate housing units will be; and WHEREAS, the City Council wishes to approve the Service Plan by the adoption of this Resolution. Packet Pg. 287 -3- NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby determines that the Policy’s notification requirements have been substantially complied with by the Applicant regarding the City Council’s public hearing on the Service Plan conducted on September 17, 2019, and then the public rehearing of the Service Plan on October 1, 2019. Section 3. That the City Council hereby finds and determines that the Service Plan contains, or sufficiently provides for, the items described in C.R.S. Section 32-1-202(2), which are: (a) A description of the Districts’ proposed services; (b) A financial plan showing how the proposed services are to be financed, including the proposed operating revenue derived from property taxes for the first budget year of the Districts; (c) All proposed indebtedness for the Districts displayed together with a schedule indicating the year or years in which the debt is scheduled to be issued; (d) A preliminary engineering or architectural survey showing how the proposed services are to be provided; (e) A map of the proposed Districts’ boundaries and an estimate of the population and valuation for assessment of the proposed Districts; (f) A general description of the facilities to be constructed and the standards of such construction, including a statement of how the facility and service standards of the proposed Districts will be compatible with the City’s facility and service standards; (g) A general description of the estimated cost of acquiring land, engineering services, legal services, administrative services, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major expenses related to the organization and initial operation of the Districts; and (f) A description of any arrangement or proposed agreement with any political subdivision for the performance of any services between the proposed Districts and such other political subdivision, and, if the form contract to be used is available, it shall be attached to the Service Plan. Section 4. That the City Council hereby further finds and determines with respect to the Service Plan and in accordance with C.R.S. Sections 32-1-203(2) and 32-1-204.5(1), that: (a) There is sufficient existing and projected need for organized service in the area to be serviced by the proposed Districts; Packet Pg. 288 -4- (b) The existing service in the area to be served by the proposed Districts is inadequate for present and projected needs; (c) The proposed Districts are capable of providing economical and sufficient service to the area within the proposed boundaries; and (d) The area to be included in the proposed Districts has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. Section 5. The City Council’s findings are based solely upon the evidence in the Service Plan as presented at the public hearing and the City has not conducted any independent investigation of the evidence. The City makes no guarantee as to the financial viability of the Districts or the achievability of the desired results. Section 6. That the City Council hereby approves the Service Plan. Section 7. That the City Council’s approval of the Service Plan is not a waiver or a limitation upon any power that the City or the City Council is legally permitted to exercise regarding the property within the Districts. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 289 CONSOLIDATED SERVICE PLAN FOR NORTHFIELD METROPOLITAN DISTRICT NOS. 1-3 CITY OF FORT COLLINS, COLORADO Prepared by: WHITE BEAR ANKELE TANAKA & WALDRON 2154 E. Commons Ave., Suite 2000 Centennial, CO 80122 Submitted On: August 7, 2019 Approved on: [__________________] EXHIBIT A a Packet Pg. 290 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) i TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1 A. Purpose and Intent................................................................................................... 1 B. Need for the Districts. ............................................................................................. 1 C. Objective of the City Regarding Districts’ Service Plan. ....................................... 2 D. City Approvals. ....................................................................................................... 2 II. DEFINITIONS .................................................................................................................... 2 III. BOUNDARIES AND LOCATION .................................................................................... 5 IV. DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC BENEFITS & ASSESSED VALUATION ................................................................................................ 6 A. Project and Planned Development. ......................................................................... 6 B. Public Benefits. ....................................................................................................... 6 C. Assessed Valuation. ................................................................................................ 8 V. INCLUSION OF LAND IN THE SERVICE AREA ......................................................... 8 VI. DISTRICT GOVERNANCE .............................................................................................. 8 VII. AUTHORIZED AND PROHIBITED POWERS ............................................................... 8 A. General Grant of Powers. ........................................................................................ 8 B. Prohibited Improvements and Services and other Restrictions and Limitations. ... 9 1. Eminent Domain Restriction....................................................................... 9 2. Fee Limitation ............................................................................................. 9 3. Operations and Maintenance....................................................................... 9 4. Fire Protection Restriction ........................................................................ 10 5. Public Safety Services Restriction ............................................................ 10 6. Grants from Governmental Agencies Restriction ..................................... 10 7. Golf Course Construction Restriction ....................................................... 10 8. Television Relay and Translation Restriction ........................................... 10 9. Potable Water and Wastewater Treatment Facilities ................................ 10 10. Sales and Use Tax Exemption Limitation ................................................ 11 11. Sub-district Restriction ............................................................................. 11 12. Privately Placed Debt Limitation .............................................................. 11 13. Special Assessments ................................................................................. 11 VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS ............................................. 11 A. Development Standards. ....................................................................................... 12 B. Contracting. ........................................................................................................... 13 a Packet Pg. 291 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) ii C. Land Acquisition and Conveyance. ...................................................................... 13 D. Equal Employment and Discrimination. ............................................................... 13 IX. FINANCIAL PLAN/PROPOSED DEBT......................................................................... 13 A. Financial Plan........................................................................................................ 13 B. Mill Levies. ........................................................................................................... 14 1. Aggregate Mill Levy Maximum ............................................................... 14 2. Regional Mill Levy Not Included in Other Mill Levies ........................... 14 3. Operating Mill Levy ................................................................................. 14 4. Gallagher Adjustments.............................................................................. 14 5. Excessive Mill Levy Pledges .................................................................... 15 6. Refunding Debt ......................................................................................... 15 7. Maximum Debt Authorization .................................................................. 15 C. Maximum Voted Interest Rate and Underwriting Discount. ................................ 15 D. Interest Rate and Underwriting Discount Certification. ....................................... 15 E. Disclosure to Purchasers. ...................................................................................... 16 F. External Financial Advisor. .................................................................................. 16 G. Disclosure to Debt Purchasers. ............................................................................. 16 H. Security for Debt. .................................................................................................. 17 I. TABOR Compliance. ............................................................................................ 17 J. Districts’ Operating Costs. .................................................................................... 17 X. REGIONAL IMPROVEMENTS...................................................................................... 17 A. Regional Mill Levy Authority. ............................................................................. 18 B. Regional Mill Levy Imposition. ............................................................................ 18 C. City Notice Regarding Regional Improvements. .................................................. 18 D. Regional Improvements Authorized Under Service Plan. .................................... 18 E. Expenditure of Regional Mil Levy Revenues. ...................................................... 18 1. Intergovernmental Agreement .................................................................. 18 2. No Intergovernmental Agreement ............................................................ 18 F. Regional Mill Levy Term. .................................................................................... 19 G. Completion of Regional Improvements. ............................................................... 19 H. City Authority to Require Imposition. .................................................................. 19 I. Regional Mill Levy Not Included in Other Mill Levies. ...................................... 19 J. Gallagher Adjustment. .......................................................................................... 19 XI. CITY FEES ....................................................................................................................... 19 a Packet Pg. 292 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) iii XII. BANKRUPTCY LIMITATIONS ..................................................................................... 19 XIII. ANNUAL REPORTS AND BOARD MEETINGS ......................................................... 20 A. General. ................................................................................................................. 20 B. Board Meetings. .................................................................................................... 20 C. Report Requirements. ........................................................................................... 20 1. Narrative ................................................................................................... 20 2. Financial Statements ................................................................................. 20 3. Capital Expenditures ................................................................................. 20 4. Financial Obligations ................................................................................ 21 5. Board Contact Information ....................................................................... 21 6. Other Information ..................................................................................... 21 D. Reporting of Significant Events. ........................................................................... 21 E. Failure to Submit................................................................................................... 21 XIV. SERVICE PLAN AMENDMENTS ................................................................................. 22 XV. MATERIAL MODIFICATIONS ..................................................................................... 22 XVI. DISSOLUTION ................................................................................................................ 22 XVII. SANCTIONS .................................................................................................................... 23 XVIII. INTERGOVERNMENTAL AGREEMENT WITH CITY .............................................. 23 XIX. CONCLUSION ................................................................................................................. 24 XX. RESOLUTION OF APPROVAL ..................................................................................... 24 a Packet Pg. 293 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) iv EXHIBITS EXHIBIT A-1 Legal Description of District No. 1 Boundaries EXHIBIT A-2 Legal Description of District No. 2 Boundaries EXHIBIT A-3 Legal Description of District No. 3 Boundaries EXHIBIT B-1 District No. 1 Boundary Map EXHIBIT B-2 District No. 2 Boundary Map EXHIBIT B-3 District No. 3 Boundary Map EXHIBIT C Vicinity Map EXHIBIT D Public Improvement Cost Estimates EXHIBIT E Public Improvement Maps EXHIBIT F Financial Plan EXHIBIT G Public Benefits EXHIBIT H Disclosure Notice EXHIBIT I Form of Intergovernmental Agreement a Packet Pg. 294 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 1 I. INTRODUCTION A. Purpose and Intent. The Districts, which are intended to be independent units of local government separate and distinct from the City, are governed by this Service Plan, the Special District Act and other applicable State law. Except as may otherwise be provided by State law, City Code or this Service Plan, the Districts’ activities are subject to review and approval by the City Council only insofar as they are a material modification of this Service Plan under C.R.S. Section 32-1-207 of the Special District Act. It is intended that the Districts will provide all or part of the Public Improvements for the Project for the use and benefit of all anticipated inhabitants and taxpayers of the Districts. The primary purpose of the Districts will be to finance the construction of these Public Improvements by the issuance of Debt. It is also intended under this Service Plan that no District shall be authorized to issue any Debt, impose a Debt Mill Levy, or impose any Fees for payment on Debt unless and until the delivery of the applicable Public Benefits described in Section IV.B of this Service Plan has been secured in accordance with Section IV.B of this Service Plan. It is intended that this Service Plan also requires the Districts to pay a portion of the cost of the Regional Improvements, as provided in Section X of this Service Plan, as part of ensuring that those privately-owned properties to be developed in the Districts that benefit from the Regional Improvements pay a reasonable share of the associated costs. The Districts are not intended to provide ongoing operations and maintenance services except as expressly authorized in this Service Plan. It is the intent of the Districts to dissolve upon payment or defeasance of all Debt incurred or upon a court determination that adequate provision has been made for the payment of all Debt, except that if the Districts are authorized in this Service Plan to perform continuing operating or maintenance functions, the Districts shall continue in existence for the sole purpose of providing such functions and shall retain only the powers necessary to impose and collect the taxes or Fees authorized in this Service Plan to pay for the costs of those functions. It is intended that the Districts shall comply with the provisions of this Service Plan and that the City may enforce any non-compliance with these provisions as provided in Sections XVII and XVIII of this Service Plan. B. Need for the Districts. There are currently no other governmental entities, including the City, located in the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake the planning, design, acquisition, construction, installation, relocation, redevelopment and financing of the Public Improvements needed for the Project. Formation of the Districts is therefore necessary in order for the Public Improvements required for the Project to be provided in the most economic manner possible. a Packet Pg. 295 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 2 C. Objective of the City Regarding Districts’ Service Plan. The City’s objective in approving this Service Plan is to authorize the Districts to provide for the planning, design, acquisition, construction, installation, relocation and redevelopment of the Public Improvements from the proceeds of Debt to be issued by the Districts but in doing so, to also establish in the Service Plan the means by which the Regional Improvements and Public Benefits will be provided. Except as specifically provided in this Service Plan, all Debt is expected to be repaid by taxes and Fees imposed and collected for no longer than the Maximum Debt Mill Levy Imposition Term for residential properties and at a tax mill levy no higher than the Maximum Debt Mill Levy. Fees imposed for the payment of Debt shall be due no later than upon the issuance of a building permit. Debt which is issued within these parameters and, as further described in the Financial Plan, will insulate property owners from excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and reasonable discharge of the Debt. D. City Approvals. Any provision in this Service Plan requiring “City” or “City Council” approval or consent shall require the City Council’s prior written approval or consent exercised in its sole discretion. Any provision in this Service Plan requiring “City Manager” approval or consent shall require the City Manager’s prior written approval or consent exercised in the City Manager’s sole discretion. II. DEFINITIONS In this Service Plan, the following words, terms and phrases which appear in a capitalized format shall have the meaning indicated below, unless the context clearly requires otherwise: Aggregate Mill Levy: means the total mill levy resulting from adding a District’s Debt Mill Levy and Operating Mill Levy. A District’s Aggregate Mill Levy does not include any Regional Mill Levy that the District may levy. Aggregate Mill Levy Maximum: means the maximum number of combined mills the Districts may each levy for its Debt Mill Levy and Operating Mill Levy, at a rate not to exceed the limitation set in Section IX.B.1. Approved Development Plan: means a City-approved development plan or other land- use application required by the City Code for identifying, among other things, public improvements necessary for facilitating the development of property within the Service Area, which plan shall include, without limitation, any development agreement required by the City Code. Board or Boards: means the duly constituted board of directors of each of the Districts, or the Boards of Directors of all of the Districts, in the aggregate. Bond, Bonds or Debt: means bonds, notes or other multiple fiscal year financial obligations for the payment of which a District has promised to impose an ad valorem property tax a Packet Pg. 296 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 3 mill levy, Fees or other legally available revenue. Such terms do not include contracts through which a District procures or provides services or tangible property. City: means the City of Fort Collins, Colorado, a home rule municipality. City Code: means collectively the City’s Municipal Charter, Municipal Code, Land Use Code and ordinances as all are now existing and hereafter amended. City Council: means the City Council of the City. City Manager: means the City Manager of the City. C.R.S.: means the Colorado Revised Statutes. Debt Mill Levy: means a property tax mill levy imposed on Taxable Property within a District for the purpose of paying Debt as authorized in this Service Plan, at a rate not to exceed the limitations set in Section IX.B of this Service Plan. Developer: means a person or entity that is the owner of property or owner of contractual rights to property in the Service Area that intends to develop the property. District: means any of the following metropolitan districts: Northfield Metropolitan District No. 1, Northfield Metropolitan District No. 2 and Northfield Metropolitan District No. 3, as each are organized under and governed by this Service Plan. District No. 1 Boundaries: means the boundaries of the area legally described in Exhibit A-1 attached hereto and incorporated by reference and as depicted in the District No. 1 Boundary Map. District No. 2 Boundaries: means the boundaries of the area legally described in Exhibit A-2 attached hereto and incorporated by reference and as depicted in the District No. 2 Boundary Map. District No. 3 Boundaries: means the boundaries of the area legally described in Exhibit A-3 attached hereto and incorporated by reference and as depicted in the District No. 3 Boundary Map. District No. 1 Boundary Map: means the map of the District No. 1 Boundaries attached hereto as Exhibit B-1 and incorporated by reference. District No. 2 Boundary Map: means the map of the District No. 2 Boundaries attached hereto as Exhibit B-2 and incorporated by reference. District No. 3 Boundary Map: means the map of the District No. 3 Boundaries attached hereto as Exhibit B-3 and incorporated by reference. a Packet Pg. 297 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 4 Districts: means Northfield Metropolitan District No. 1, Northfield Metropolitan District No. 2 and Northfield Metropolitan District No. 3, collectively, organized under and governed by this Service Plan. End User: means any owner, or tenant of any owner, of any property within the Districts, who is intended to become burdened by the imposition of ad valorem property taxes and/or Fees. By way of illustration, a resident homeowner, renter, commercial property owner or commercial tenant is an End User. A Developer and any person or entity that constructs homes or commercial structures is not an End User. External Financial Advisor: means a consultant that: (1) is qualified to advise Colorado governmental entities on matters relating to the issuance of securities by Colorado governmental entities including matters such as the pricing, sales and marketing of such securities and the procuring of bond ratings, credit enhancement and insurance in respect of such securities; (2) shall be an underwriter, investment banker, or individual listed as a public finance advisor in the Bond Buyer’s Municipal Market Place or, in the City’s sole discretion, other recognized publication as a provider of financial projections; and (3) is not an officer or employee of the Districts or an underwriter of the Districts’ Debt. Fees: means the fees, rates, tolls, penalties and charges the Districts are authorized to impose and collect under this Service Plan. Financial Plan: means the Financial Plan described in Section IX of this Service Plan which was prepared by D.A. Davidson & Co., an External Advisor, in accordance with the requirements of this Service Plan and describes (a) how the Public Improvements are to be financed; (b) how the Debt is expected to be incurred; and (c) the estimated operating revenue derived from property taxes and any Fees for the first budget year through the year in which all District Debt is expected to be defeased or paid in the ordinary course. Maximum Debt Authorization: means the total Debt the Districts are permitted to issue as set forth in Section IX.B.7 of this Service Plan. Maximum Debt Mill Levy Imposition Term: means the maximum term during which a District’s Debt Mill Levy may be imposed on property developed in the Service Area for residential use, which shall include residential properties in mixed-use developments. This maximum term shall not exceed forty (40) years from December 31 of the year this Service Plan is approved by City Council Operating Mill Levy: means a property tax mill levy imposed on Taxable Property for the purpose of funding a District’s administration, operations and maintenance as authorized in this Service Plan, including, without limitation, repair and replacement of Public Improvements, and imposed at a rate not to exceed the limitations set in Section IX.B of this Service Plan. Planned Development: means the private development or redevelopment of the properties in the Service Area, commonly referred to as Northfield, under an Approved Development Plan. Project: means the installation and construction of the Public Improvements for the Planned Development. a Packet Pg. 298 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 5 Public Improvements: means the improvements and infrastructure the Districts are authorized by this Service Plan to fund and construct for the Planned Development to serve the future taxpayers and inhabitants of the Districts, except as specifically prohibited or limited in this Service Plan. Public Improvements shall include, without limitation, the improvements and infrastructure described in Exhibit F attached hereto and incorporated by reference. Public Improvements do not include Regional Improvements. Regional Improvements: means any regional public improvement identified by the City for funding, in whole or part, by a Regional Mill Levy levied by the Districts, including, without limitation, the public improvements described in Exhibit I attached hereto and incorporated by reference. Regional Mill Levy: means the property tax mill levy imposed on Taxable Property for the purpose of planning, designing, acquiring, funding, constructing, installing, relocating and/or redeveloping the Regional Improvements and/or to fund the administration and overhead costs related to the Regional Improvements as provided in Section X of this Service Plan. Service Area: means the property collectively within the District No. 1 Boundaries, District No. 2 Boundaries, and District No. 3 Boundaries, all as may be amended from time to time as further set forth in this Service Plan and the Special District Act. Special District Act: means Article 1 in Title 32 of the Colorado Revised Statutes, as amended. Service Plan: means this service plan for the Districts approved by the City Council. Service Plan Amendment: means a material modification of the Service Plan approved by the City Council in accordance with the Special District Act, this Service Plan and any other applicable law. State: means the State of Colorado. TABOR: means Colorado’s Taxpayer’s Bill of Rights in Article X, Section 20 of the Colorado Constitution. Taxable Property: means the real and personal property within the Service Area that will be subject to the ad valorem property taxes imposed by the Districts. Vicinity Map: means the map attached hereto as Exhibit E and incorporated by reference depicting the location of the Service Area within the regional area surrounding it. III. BOUNDARIES AND LOCATION The area of the Service Area includes approximately 56.3 acres. A legal description and map of the District No. 1 Boundaries are attached hereto as Exhibit A-1 and Exhibit B-1, respectively; a legal description and map of the District No. 2 Boundaries are attached hereto as Exhibit A-2 and Exhibit B-2, respectively; and a legal description and map of the District No. 3 Boundaries are attached hereto as Exhibit A-3 and Exhibit B-3, respectively. It is anticipated that a Packet Pg. 299 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 6 the Districts’ Boundaries may expand or contract from time to time as the Districts undertake inclusions or exclusions pursuant to the Special District Act, subject to the limitations set forth in Section V of this Service Plan. The location of the Service Area is depicted in the vicinity map attached as Exhibit E. IV. DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC BENEFITS & ASSESSED VALUATION A. Project and Planned Development. Situated within walking distance of the City’s Old Town, the Planned Development is a proposed 56.3-acre, mixed-use community located west of Lindenmeier Road, southeast of the Lake Canal and north of the to-be designated historic Alta Vista neighborhood. The Planned Development targets a number of the City’s stretch outcomes and critical objectives, including neighborhood livability and social health, environmental health, and transportation. The Planned Development incorporates goals of the following plans: the City Plan, Transportation Master Plan, Master Street Plan, Nature in the City Strategic Plan, Natural Areas Master Plan, Paved Recreational Trail Master Plan, Northside Neighborhoods Plan, Pedestrian Plan, and Bicycle Master Plan. The Planned Development is anticipated to include approximately 442 attached housing units, of which a minimum of sixty-five (65) housing units will be designated and provided as as either for-sale or for-rent affordable housing (the “Required Affordable Units”), and the majority of the rest of the units will be sold as attainable housing units. The Planned Development is also anticipated to include a mixed-use center that will offer light commercial use on the first floor, residential for-rent units on the second floor, and small amenities open to the public. The estimated resident population at build-out is 1,139. Construction of the Planned Development is planned to be completed by year 2026. In accordance with the Financial Plan, the estimated assessed valuation of the Planned Development in 2024 is estimated to be $8,525,353 for residential and $181,867 for commercial, and in 2029 it is estimated to be $13,129,996 for residential and $204,346 for commercial. Approval of this Service Plan by the City Council does not constitute nor imply approval of the development of any particular land-use for any specific area within the Districts. Any such approval must be contained within an Approved Development Plan. B. Public Benefits. In addition to providing the Public Improvements described in Exhibit F and the Regional Improvements, the Districts will deliver several public benefits to the community in accordance with the City’s Metro District Service Plan Policy. The public benefits include, but are not limited to, developing critical on-site and off-site public infrastructure, employing high quality and smart growth practices, creating the Required Affordable Units, creating attainable housing units to support the workforce, and incorporating environmental sustainability through energy and water conservation, and enhanced multimodal transportation, all of which are specifically described in Exhibit I attached hereto and incorporated herein by this reference (collectively, the “Public Benefits”). In addition to the foregoing, if all or a portion of the Required Affordable Units are a Packet Pg. 300 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 7 offered as for-sale units, such units must be sold at a price affordable in Larimer County, Colorado, for an area median income (“AMI”) of 80% or lower. If all of a portion of the Required Affordable Units are offered as for-rent units, such units must be rented at a price affordable in Larimer County, Colorado, for an AMI of 80% or lower and the average of all rents for those units must at all times reasonably approximate to a Larimer County AMI of 60% or lower. In addition, as provided in Exhibit I, the Required Affordable Units shall be designed and constructed to the same energy-efficiency standards as the other housing units built in the Planned Development. Therefore, notwithstanding any provision to the contrary contained in this Service Plan, no District shall be authorized to issue any Debt or to impose a Debt Mill Levy or any Fees for payment of Debt unless and until the delivery of the Public Benefits specifically related to the phase of the Planned Development or portion of the Project to be financed with such Debt, Debt Mill Levy or Fees are secured in a manner approved by the City Council. To satisfy this precondition to the issuance of Debt and to the imposition of the Debt Mill Levy and Fees, delivery of the Public Benefits for each phase of the Project and the Planned Development must be secured by one of the following methods, as applicable: 1. For any portion of the Public Benefits to be provided by one or more of the Districts, each such District must enter into an intergovernmental agreement with the City either (i) agreeing to provide those Public Benefits as a legally enforceable multiple-fiscal year obligation of the District under TABOR, or by (ii) securing performance of that obligation with a surety bond, letter of credit, or other security acceptable to the City, and any such intergovernmental agreement must be approved by the City Council by resolution; 2. For any portion of the Public Benefits to be provided by one or more Developers of the Planned Development, each such Developer must either (i) enter into a development agreement with the City under the Developer’s applicable Approved Development Plan, which agreement must legally obligate the Developer to provide those Public Benefits before the City is required to issue building permits and/or certificates of occupancy for structures to be built under the Approved Development Plan for that phase of the Planned Development, or (ii) secure such obligations with a surety bond, letter of credit, or other security acceptable to the City, and all such development agreements must be approved by the City Council by resolution; or 3. For any portion of the Public Benefits to be provided in part by one or more of the Districts in the Project and in part by one or more of the Developers in the Planned Development or Project, an agreement between the City, the affected District(s), and the Developer(s) that secures such Public Benefits as legally binding obligations using the methods described in subsections 1 and 2 above, and all such agreements must be approved by the City Council by resolution. Specifically, with regard to delivery of the Required Affordable Units contemplated in Section 2 above, the development agreement between the Developer and the City shall include the following conditions: The Required Affordable Units may be provided through either of the following two mechanisms or any other mechanism mutually agreed upon by the Developer and the City, or any combination of the same: a Packet Pg. 301 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 8 a. Construction of the Required Affordable Units by the Developer under the Approved Development Plan. Only those Developer-constructed Required Affordable Units for which the City has issued a certificate of occupancy will be counted toward the satisfaction of the total number of Required Affordable Units needed. b. Sale of lots for the Required Affordable Units within the Planned Development by the Developer to a non-profit or for-profit builder who will contractually guarantee to the City that the builder will only build Required Affordable Units on the those lots. At the time any such sale is closed and the contractual guarantee has been provided to the City to its satisfaction, the number of housing units approved for construction on such lots shall count toward the Required Affordable Units. All sixty-five (65) of the Required Affordable Units shall be secured through one of the mechanisms described above (or through any other mechanism agreed upon in writing between the City and the Developer) before the City is required to issue more than two hundred twenty-one (221) total building permits for dwelling units to be built in the Planned Development. Once all sixty-five (65) of the Required Affordable Units have been secured as here required, this restriction on building permits shall terminate. C. Assessed Valuation. The current assessed valuation of the Service Area is approximately $2,024 and, at build out is expected to be $13,334,342. These amounts are expected to be sufficient to reasonably discharge the Debt as demonstrated in the Financial Plan. V. INCLUSION OF LAND IN THE SERVICE AREA The Districts shall not add any real property to the Service Area without the City’s approval and in compliance with the Special District Act. Once a District has issued Debt, it shall not exclude real property from the District’s boundaries without the prior written consent of the City Council. VI. DISTRICT GOVERNANCE The Districts’ Boards shall be comprised of persons who are a qualified “eligible elector” of the Districts as provided in the Special District Act. It is anticipated that, over time, the End Users who are eligible electors will assume direct electoral control of the Districts’ Boards as development of the Service Area progresses. The Districts shall not enter into any agreement by which the End Users’ electoral control of the Boards is removed or diminished. VII. AUTHORIZED AND PROHIBITED POWERS A. General Grant of Powers. a Packet Pg. 302 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 9 The Districts shall have the power and authority to provide the Public Improvements, the Regional Improvements and related operation and maintenance services, including design review and covenant enforcement services, within and without the Service Area, as such powers and authorities are described in the Special District Act, other applicable State law, common law and the Colorado Constitution, subject to the prohibitions, restrictions and limitations set forth in this Service Plan. If, after the Service Plan is approved, any State law is enacted to grant additional powers or authority to metropolitan districts by amendment of the Special District Act or otherwise, such powers and authority shall be deemed to be a part hereof. These new powers and authority shall only be available to be exercised by the Districts if the City Council first approves a Service Plan Amendment to specifically allow the exercise of such powers or authority by the Districts. B. Prohibited Improvements and Services and other Restrictions and Limitations. The Districts’ powers and authority under this Service Plan to provide Public Improvements and services and to otherwise exercise its other powers and authority under the Special District Act and other applicable State law, are prohibited, restricted and limited as hereafter provided. Failure to comply with these prohibitions, restrictions and limitations shall constitute a material modification under this Service Plan and shall entitle the City to pursue all remedies available at law and in equity as provided in Sections XVII and XVIII of this Service Plan: 1. Eminent Domain Restriction The Districts shall not exercise their statutory power of eminent domain without first obtaining resolution approval from the City Council. This restriction on the Districts’ exercise of their eminent domain power is being voluntarily acquiesced to by the Districts and shall not be interpreted in any way as a limitation on the Districts’ sovereign powers and shall not negatively affect the Districts’ status as political subdivisions of the State as conferred by the Special District Act. 2. Fee Limitation Any Fees imposed for the repayment of Debt, if authorized by this Service Plan, shall not be imposed by the Districts upon or collected from an End User. In addition, Fees imposed for the payment of Debt shall not be imposed unless and until the requirements for securing the delivery of the District’s portion of the Public Benefits have been satisfied in accordance with Section IV.B of this Service Plan. Notwithstanding the foregoing, this Fee limitation shall not apply to any Fee imposed to fund the operation, maintenance, repair or replacement of Public Improvements or the administration of the Districts. 3. Operations and Maintenance a Packet Pg. 303 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 10 The primary purpose of the Districts is to plan for, design, acquire, construct, install, relocate, redevelop and finance the Public Improvements. The Districts shall dedicate the Public Improvements to the City or other appropriate jurisdiction or owners’ association in a manner consistent with the Approved Development Plan and the City Code, provided that nothing herein requires the City to accept a dedication. The Districts are each specifically authorized to operate and maintain all or any part or all of the Public Improvements not otherwise conveyed or dedicated to the City or another appropriate governmental entity until such time as the District is dissolved. 4. Fire Protection Restriction The Districts are not authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain fire protection facilities or services, unless such facilities and services are provided pursuant to an intergovernmental agreement with the Poudre Fire Authority. The authority to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or maintain fire hydrants and related improvements installed as part of the Project’s water system shall not be limited by this subsection. 5. Public Safety Services Restriction The Districts are not authorized to provide policing or other security services. However, the Districts may, pursuant to C.R.S. § 32-1-1004(7), as amended, furnish security services pursuant to an intergovernmental agreement with the City. 6. Grants from Governmental Agencies Restriction The Districts shall not apply for grant funds distributed by any agency of the United States Government or the State without the prior written approval of the City Manager. This does not restrict the collection of Fees for services provided by the Districts to the United States Government or the State. 7. Golf Course Construction Restriction Acknowledging that the City has financed public golf courses and desires to coordinate the construction of public golf courses within the City’s boundaries, the Districts shall not be authorized to plan, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain a golf course unless such activity is pursuant to an intergovernmental agreement with the City approved by the City Council. 8. Television Relay and Translation Restriction The Districts are not authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain television relay and translation facilities and services, other than for the installation of conduit as a part of a street construction project, unless such facilities and services are provided pursuant to prior written approval from the City Council as a Service Plan Amendment. 9. Potable Water and Wastewater Treatment Facilities a Packet Pg. 304 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 11 Acknowledging that the City and other existing special districts operating within the City currently own and operate treatment facilities for potable water and wastewater that are available to provide services to the Service Area, the Districts shall not plan, design, acquire, construct, install, relocate, redevelop, finance, own, operate or maintain such facilities without obtaining the City Council’s prior written approval either by intergovernmental agreement or as a Service Plan Amendment. 10. Sales and Use Tax Exemption Limitation The Districts shall not exercise any sales and use tax exemption otherwise available to the Districts under the City Code. 11. Sub-district Restriction The Districts shall not create any sub-district pursuant to the Special District Act without the prior written approval of the City Council. 12. Privately Placed Debt Limitation Prior to the issuance of any privately placed Debt, the Districts shall obtain the certification of an External Financial Advisor substantially as follows: We are [I am] an External Financial Advisor within the meaning of the District’s Service Plan. We [I] certify that (1) the net effective interest rate (calculated as defined in C.R.S. Section 32-1- 103(12)) to be borne by [insert the designation of the Debt] does not exceed a reasonable current [tax- exempt] [taxable] interest rate, using criteria deemed appropriate by us [me] and based upon our [my] analysis of comparable high yield securities; and (2) the structure of [insert designation of the Debt], including maturities and early redemption provisions, is reasonable considering the financial circumstances of the District. 13. Special Assessments The Districts shall not impose special assessments without the prior written approval of the City Council. VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS Exhibit F summarizes the type of Public Improvements that are projected to be constructed and/or installed by the Districts. The cost, scope, and definition of such Public Improvements may vary over time. The total estimated costs of Public Improvements, as set forth in Exhibit F, excluding any improvements paid for by the Regional Mill Levy necessary to serve the Planned a Packet Pg. 305 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 12 Development, are approximately $30,131,965 in 2019 dollars. The cost estimates are based upon preliminary engineering, architectural surveys, and reviews of the Public Improvements set forth in Exhibit F and include all construction cost estimates together with estimates of costs such as land acquisition, engineering services, legal expenses and other associated expenses. Maps of the anticipated location, operation, and maintenance of Public Improvements are attached hereto as Exhibit G. Changes in the Public Improvements or cost, which are approved by the City in an Approved Development Plan and any agreement approved by the City Council pursuant to Section IV.B of this Service Plan, shall not constitute a Service Plan Amendment. In addition, due to the preliminary nature of the Project, the City shall not be bound by this Service Plan in reviewing and approving the Approved Development Plan and the Approved Development Plan shall supersede the Service Plan with regard to the cost, scope, and definition of Public Improvements. Provided, however, any agreement approved and entered into pursuant to Section IV.B of this Service Plan for the provision of a Public Improvement that is also a Public Benefit shall supersede both this Service Plan and the Approved Development Plan. Except as otherwise provided by an agreement approved under Section IV.B of this Service Plan: (i) the design, phasing of construction, location and completion of Public Improvements will be determined by the Districts to coincide with the phasing and development of the Planned Development and the availability of funding sources; (ii) the Districts may, in their discretion, phase the construction, completion, operation, and maintenance of Public Improvements or defer, delay, reschedule, rephase, relocate or determine not to proceed with the construction, completion, operation, and maintenance of Public Improvements, and such actions or determinations shall not constitute a Service Plan Amendment; (iii) the Districts shall also be permitted to allocate costs between such categories of the Public Improvements as deemed necessary in their discretion; and (iv) to the extent that the City reimburses a developer for Public Improvements that would otherwise be reimbursable under the Special District Act, the District shall not reimburse the developer for such Public Improvements. The Public Improvements shall be listed using an ownership and maintenance matrix in Exhibit F, either individually or categorically, to identify the ownership and maintenance responsibilities of the Public Improvements. The City Code has development standards, contracting requirements and other legal requirements related to the construction and payment of public improvements and related to certain operation activities. Relating to these, the Districts shall comply with the following requirements: A. Development Standards. The Districts shall ensure that the Public Improvements are designed and constructed in accordance with the standards and specifications of the City Code and of other governmental entities having proper jurisdiction, as applicable. The Districts directly, or indirectly through any Developer, will obtain the City’s approval of civil engineering plans and will obtain applicable permits for construction and installation of Public Improvements prior to performing such work. Unless waived by the City Council, the Districts shall be required, in accordance with the City Code, to post a surety bond, letter of credit, or other approved development security for any Public Improvements to be constructed by the Districts. Such development security may be released in the City Manager’s discretion when the constructing District has obtained funds, a Packet Pg. 306 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 13 through Debt issuance or otherwise, adequate to insure the construction of the Public Improvements, unless such release is prohibited by or in conflict with any City Code provision, State law or any agreement approved and entered into under Section IV.B of this Service Plan. Any limitation or requirement concerning the time within which the City must review the Districts’ proposal or application for an Approved Development Plan or other land use approval is hereby waived by the Districts. B. Contracting. The Districts shall comply with all applicable State purchasing, public bidding and construction contracting requirements and limitations. C. Land Acquisition and Conveyance. The purchase price of any land or improvements acquired by the Districts from the Developer shall be no more than the then-current fair market value as confirmed by an independent MAI appraisal for land and by an independent professional engineer for improvements. Land, easements, improvements and facilities conveyed to the City shall be free and clear of all liens, encumbrances and easements, unless otherwise approved by the City Manager prior to conveyance. All conveyances to the City shall be by special warranty deed, shall be conveyed at no cost to the City, shall include an ALTA title policy issued to the City, shall meet the environmental standards of the City and shall comply with any other conveyance prerequisites required in the City Code. D. Equal Employment and Discrimination. In connection with the performance of all acts or activities hereunder, the Districts shall not discriminate against any person otherwise qualified with respect to its hiring, discharging, promoting or demoting or in matters of compensation solely because of race, color, religion, national origin, gender, age, military status, sexual orientation, gender identity or gender expression, marital status, or physical or mental disability, and further shall insert the foregoing provision in contracts or subcontracts entered into by the Districts to accomplish the purposes of this Service Plan. IX. FINANCIAL PLAN/PROPOSED DEBT This Section IX of the Service Plan describes the nature, basis, method of funding and financing limitations associated with the acquisition, construction, completion, repair, replacement, operation and maintenance of Public Improvements. A. Financial Plan. The Districts’ Financial Plan, attached as Exhibit H and incorporated by reference, reflects the Districts’ anticipated schedule for incurring Debt to fund Public Improvements in support of the Project. The Financial Plan also reflects the schedule of all anticipated revenues flowing to the Districts derived from the Districts’ mill levies, Fees imposed by the Districts, specific ownership taxes, and all other anticipated legally available revenues. The Financial Plan is based on economic, political and industry conditions as they presently exist and reasonable a Packet Pg. 307 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 14 projections and estimates of future conditions. These projections and estimates are not to be interpreted as the only method of implementation of the District’s goals and objectives but rather a representation of one feasible alternative. Other financial structures may be used so long as they are in compliance with this Service Plan. The Financial Plan incorporates all of the provisions of this Section IX. Based upon the assumptions contained therein, the Financial Plan projects the issuance of Bonds to fund Public Improvements and anticipated Debt repayment based on the development assumptions and absorptions of the property in the Service Area by End Users. The Financial Plan anticipates that the Districts will acquire, construct, and complete all Public Improvements needed to serve the Service Area. The Financial Plan demonstrates that the Districts will have the financial ability to discharge all Debt to be issued as part of the Financial Plan on a reasonable basis. Furthermore, the Districts will secure the certification of an External Financial Advisor who will provide an opinion as to whether such Debt issuances are in the best interest of the Districts at the time of issuance. B. Mill Levies. It is anticipated that the Districts will impose a Debt Mill Levy and an Operating Mill Levy on all property within the Service Area. In doing so, the following shall apply: 1. Aggregate Mill Levy Maximum The Aggregate Mill Levy shall not exceed in any year the Aggregate Mill Levy Maximum, which is fifty (50) mills. 2. Regional Mill Levy Not Included in Other Mill Levies The Regional Mill Levy shall not be counted against the Aggregate Mill Levy Maximum. 3. Operating Mill Levy The Districts may each impose an Operating Mill Levy of up to fifty (50) mills until the District imposes a Debt Mill Levy. Once a District imposes a Debt Mill Levy of any amount, that District’s Operating Mill Levy shall not exceed ten (10) mills at any point. 4. Gallagher Adjustments In the event the State’s method of calculating assessed valuation for the Taxable Property changes after January 1, 2019, or any constitutionally mandated tax credit, cut or abatement takes effect after January 1, 2019, the Districts’ Aggregate Mill Levy, Debt Mill Levy, Operating Mill Levy, and Aggregate Mill Levy Maximum, amounts herein provided may be increased or decreased to reflect such changes; such increases or decreases shall be determined a Packet Pg. 308 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 15 by the Districts’ Boards in good faith so that to the extent possible, the actual tax revenues generated by such mill levies, as adjusted, are neither enhanced nor diminished as a result of such change occurring after January 1, 2019. For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation will be a change in the method of calculating assessed valuation. 5. Excessive Mill Levy Pledges Any Debt issued with a mill levy pledge, or which results in a mill levy pledge, that exceeds the Aggregate Mill Levy Maximum or the Maximum Debt Mill Levy Imposition Term, shall be deemed a material modification of this Service Plan and shall not be an authorized issuance of Debt unless and until such material modification has been approved by a Service Plan Amendment. 6. Refunding Debt The Maximum Debt Mill Levy Imposition Term may be exceeded for Debt refunding purposes if: (1) a majority of the issuing District’s Board is composed of End Users and have voted in favor of a refunding of a part or all of the Debt; or (2) such refunding will result in a net present value savings. 7. Maximum Debt Authorization The Districts anticipate approximately $30,131,965 in project costs in 2019 dollars as set forth in Exhibit F and anticipate issuing approximately $16,000,000 in Debt to pay such costs as set forth in Exhibit H, which Debt issuance amount shall be the amount of the Maximum Debt Authorization. In addition, a District shall not issue any Debt unless and until delivery of the District’s Public Benefits have been secured as required in Section IV.B of this Service Plan. The Districts collectively shall not issue Debt in excess of the Maximum Debt Authorization. Bonds which have been refunded shall not count against the Maximum Debt Authorization. The Districts must obtain from the City Council a Service Plan Amendment prior to issuing Debt in excess of the Maximum Debt Authorization. C. Maximum Voted Interest Rate and Underwriting Discount. The interest rate on any Debt is expected to be the market rate at the time the Debt is issued. The maximum interest rate on any Debt, including any defaulting interest rate, is not permitted to exceed twelve percent (12%). The maximum underwriting discount shall be three percent (3%). Debt, when issued, will comply with all relevant requirements of this Service Plan, the Special District Act, other applicable State law and federal law as then applicable to the issuance of public securities. D. Interest Rate and Underwriting Discount Certification. The Districts shall retain an External Financial Advisor to provide a written opinion on the market reasonableness of the interest rate on any Debt and any underwriter discount payed a Packet Pg. 309 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 16 by the Districts as part of a Debt financing transaction. The Districts shall provide this written opinion to the City before issuing any Debt based on it. E. Disclosure to Purchasers. In order to notify future End Users who are purchasing residential lots or dwellings units in the Service Area that they will be paying, in addition to the property taxes owed to other taxing governmental entities, the property taxes imposed under the Debt Mill Levy, the Operating Mill Levy and possibly the Regional Mill Levy, the Districts shall not be authorized to issue any Debt under this Service Plan until there is included in the Developer’s Approved Development Plan provisions that require the following: 1. That the Developer, and its successors and assigns, shall prepare and submit to the City Manager for his approval a disclosure notice in substantially the form attached hereto as Exhibit H (the “Disclosure Notice”); 2. That when the Disclosure Notice is approved by the City Manager, the Developer shall record the Disclosure Notice in the Larimer County Clerk and Recorders Office; and 3. That the approved Disclosure Notice shall be provided by the Developer, and by its successors and assigns, to each potential End User purchaser of a residential lot or dwelling unit in the Service Area before that purchaser enters into a written agreement for the purchase and sale of that residential lot or dwelling unit. F. External Financial Advisor. An External Financial Advisor shall be retained by the Districts to provide a written opinion as to whether any Debt issuance is in the best interest of the issuing District once the total amount of Debt issued by such District exceeds Five Million Dollars ($5,000,000). The External Financial Advisor is to provide advice to the issuing District’s Board regarding the proposed terms and whether Debt conditions are reasonable based upon the status of development within the District, the projected tax base increase in the District, the security offered and other considerations as may be identified by the Advisor. The issuing District shall include in the transcript of any Bond transaction, or other appropriate financing documentation for related Debt instrument, a signed letter from the External Financial Advisor providing an official opinion on the structure of the Debt, stating the Advisor’s opinion that the cost of issuance, sizing, repayment term, redemption feature, couponing, credit spreads, payment, closing date, and other material transaction details of the proposed Debt serve the best interest of the issuing District. Debt shall not be undertaken by the Districts if found to be unreasonable by the External Financial Advisor. G. Disclosure to Debt Purchasers. Any Debt of the Districts shall set forth a statement in substantially the following form: a Packet Pg. 310 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 17 By acceptance of this instrument, the owner of this Debt agrees and consents to all of the limitations with respect to the payment of the principal and interest on this Debt contained herein, in the resolution of the District authorizing the issuance of this Debt and in the Service Plan of the District. This Debt is not and cannot be a Debt of the City of Fort Collins. Similar language describing the limitations with respect to the payment of the principal and interest on Debt set forth in this Service Plan shall be included in any document used for the offering of the Debt for sale to persons, including, but not limited to, a Developer of property within the Service Area. H. Security for Debt. The Districts shall not pledge any revenue or property of the City as security for the indebtedness set forth in this Service Plan. Approval of this Service Plan shall not be construed as a guarantee by the City of payment of any of the Districts’ obligations; nor shall anything in the Service Plan be construed to create any responsibility or liability on the part of the City in the event of default by the Districts in the payment of any such obligation. I. TABOR Compliance. The Districts shall comply with the provisions of TABOR. In the discretion of the Districts’ Boards, the Districts may set up other qualifying entities to manage, fund, construct and operate facilities, services, and programs. To the extent allowed by law, any entity created by a District will remain under the control of the District’s Board. J. Districts’ Operating Costs. The estimated cost of acquiring land, engineering services, legal services and administrative services, together with the estimated costs of the Districts’ organization and initial operations, are anticipated to be One Hundred Thousand Dollars ($100,000), which will be eligible for reimbursement from Debt proceeds. In addition to the capital costs of the Public Improvements, the Districts will require operating funds for administration and to plan and cause the Public Improvements to be operated and maintained. The first year’s operating budget is estimated to be Fifty Thousand Dollars ($50,000). Ongoing administration, operations and maintenance costs may be paid from property taxes collected through the imposition of an Operating Mill Levy, subject to the limitations set forth in Section IX.B.3, as well as from other revenues legally available to the Districts. X. REGIONAL IMPROVEMENTS The Districts shall be authorized to provide for the planning, design, acquisition, funding, construction, installation, relocation, redevelopment, administration and overhead costs related to a Packet Pg. 311 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 18 the provision of Regional Improvements. At the discretion of the City, the Districts shall impose a Regional Improvement Mill Levy on all property within the Districts’ Boundaries and any properties thereafter included in the Boundaries under the following terms: A. Regional Mill Levy Authority. The Districts shall seek the authority to impose an additional Regional Mill Levy of five (5) mills as part of the Districts’ initial TABOR election. The Districts shall also seek from the electorate in that election the authority under TABOR to enter into an intergovernmental agreement with the City obligating the Districts to pay as a multiple-fiscal year obligation the proceeds from the Regional Mill Levy to the City. Obtaining such voter-approval of this intergovernmental agreement shall be a precondition to the Districts issuing any Debt and imposing the Debt Mill Levy, the Operating Mill Levy and Fees for the repayment of Debt under this Service Plan. B. Regional Mill Levy Imposition. The Districts shall each impose the Regional Mill Levy at a rate not to exceed five (5) mills within one year of receiving written notice from the City Manager to the Districts requesting the imposition of the Regional Mill Levy and stating the mill rate to be imposed. C. City Notice Regarding Regional Improvements. Such notice from the City shall provide a description of the Regional Improvements to be constructed and an analysis explaining how the Regional Improvements will be beneficial to property owners within the Service Area. The City shall make a good faith effort to require that planned developments that (i) are adjacent to the Service Area and (ii) will benefit from the Regional Improvement also impose a Regional Mill Levy, to the extent possible. D. Regional Improvements Authorized Under Service Plan. If so notified by the City Manager, the Regional Improvements shall be considered public improvements that the Districts would otherwise be authorized to design, construct, install re-design, re-construct, repair or replace pursuant to this Service Plan and applicable law. E. Expenditure of Regional Mil Levy Revenues. Revenue collected through the imposition of the Regional Mill Levy shall be expended as follows: 1. Intergovernmental Agreement If the City and the Districts have executed an intergovernmental agreement concerning the Regional Improvements, then the revenue from the Regional Mill Levy shall be used in accordance with such agreement; 2. No Intergovernmental Agreement a Packet Pg. 312 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 19 If no intergovernmental agreement exists between the Districts and the City, then the revenue from the Regional Mill Levy shall be paid to the City, for use by the City in the planning, designing, constructing, installing, acquiring, relocating, redeveloping or financing of Regional Improvements which benefit the End Users of the Districts as prioritized and determined by the City. F. Regional Mill Levy Term. The imposition of the Regional Mill Levy shall not exceed a term of twenty-five (25) years from December 31 of the tax collection year after which the Regional Mill Levy is first imposed. G. Completion of Regional Improvements. All Regional Improvements shall be completed prior to the end of the twenty-five (25) year Regional Mill Levy term. H. City Authority to Require Imposition. The City’s authority to require a District to initiate the imposition of a Regional Mill Levy shall expire fifteen (15) years after December 31st of the year in which said District first imposes a Debt Mill Levy. I. Regional Mill Levy Not Included in Other Mill Levies. The Regional Mill Levy imposed shall not be applied toward the calculation of the Aggregate Mill Levy Maximum. J. Gallagher Adjustment. In the event the method of calculating assessed valuation is changed January 1, 2019, or any constitutionally mandated tax credit, cut or abatement takes effect after January 1, 2019, the Regional Mill Levy may be increased or shall be decreased to reflect such changes; such increases or decreases shall be determined by each of the Districts’ Boards in good faith so that to the extent possible, the actual tax revenues generated by the Regional Mill Levy, as adjusted, are neither enhanced nor diminished as a result of such change occurring after January 1, 2019. For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation will be a change in the method of calculating assessed valuation. XI. CITY FEES The Districts shall pay all applicable City fees as required by the City Code. XII. BANKRUPTCY LIMITATIONS All of the limitations contained in this Service Plan, including, but not limited to, those pertaining to the Aggregate Mill Levy Maximum, Maximum Debt Mill Levy Imposition Term and Fees, have been established under the authority of the City in the Special District Act to approve a Packet Pg. 313 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 20 this Service Plan. It is expressly intended that by such approval such limitations: (i) shall not be set aside for any reason, including by judicial action, absent a Service Plan Amendment; and (ii) are, together with all other requirements of State law, included in the “political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11 U.S.C.) Section 903, and are also included in the “regulatory or electoral approval necessary under applicable non-bankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6). XIII. ANNUAL REPORTS AND BOARD MEETINGS A. General. Each of the Districts shall be responsible for submitting an annual report to the City Clerk no later than September 1st of each year following the year in which the Orders and Decrees creating the Districts have been issued. The Districts may file a consolidated annual report. The annual report(s) may be made available to the public on the City’s website. B. Board Meetings. Each of the Districts’ Boards shall hold at least one public board meeting in three of the four quarters of each calendar year, beginning in the first full calendar year after a District’s creation. This meeting requirement shall not apply until there is at least one End User of property within the District. Also, this requirement shall no longer apply when a majority of the directors on the District’s Board are End Users. Notice for each of these meetings shall be given in accordance with the requirements of the Special District Act and other applicable State Law. C. Report Requirements. Unless waived in writing by the City Manager, each of the Districts’ annual report must include the following: 1. Narrative A narrative summary of the progress of the District in implementing its Service Plan for the report year. 2. Financial Statements Except when an exemption from audit has been granted for the report year under the Local Government Audit Law, the audited financial statements of the District for the report year including a statement of financial condition (i.e., balance sheet) as of December 31 of the report year and the statement of operation (i.e., revenue and expenditures) for the report year. 3. Capital Expenditures Unless disclosed within a separate schedule to the financial statements, a summary of the capital expenditures incurred by the District in development of improvements in the report year. a Packet Pg. 314 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 21 4. Financial Obligations Unless disclosed within a separate schedule to the financial statements, a summary of financial obligations of the District at the end of the report year, including the amount of outstanding Debt, the amount and terms of any new District Debt issued in the report year, the total assessed valuation of all Taxable Property within the Service Area as of January 1 of the report year and the current total District mill levy pledged to Debt retirement in the report year. 5. Board Contact Information The names and contact information of the current directors on the District’s Board, any District manager and the attorney for the District shall be listed in the report. The District’s current office address, phone number, email address and any website address shall also be listed in the report. 6. Other Information Any other information deemed relevant by the City Council or deemed reasonably necessary by the City Manager. D. Reporting of Significant Events. The annual report of each District shall include information as to any of the following that occurred during the report year: 1. Boundary changes made or proposed to the District’s Boundaries as of December 31 of the report year. 2. Intergovernmental Agreements with other governmental entities, either entered into or proposed as of December 31 of the report year. 3. Copies of the District’s rules and regulations, if any, or substantial changes to the District’s rules and regulations as of December 31 of the report year. 4. A summary of any litigation which involves the District’s Public Improvements as of December 31 of the report year. 5. A list of all facilities and improvements constructed by the District that have been dedicated to and accepted by the City as of December 31 of the report year. 6. Notice of any uncured events of default by the District, which continue beyond a ninety (90) day period, under any Debt instrument. 7. Any inability of the District to pay its obligations as they come due, in accordance with the terms of such obligations, which continue beyond a ninety (90) day period. E. Failure to Submit. a Packet Pg. 315 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 22 In the event the annual report is not timely received by the City Clerk or is not fully responsive, notice of such default shall be given to the District’s Board at its last known address. The failure of the District to file the annual report within forty-five (45) days of the mailing of such default notice by the City Clerk may constitute a material modification of the Service Plan, at the discretion of the City Manager. XIV. SERVICE PLAN AMENDMENTS This Service Plan is general in nature and does not include specific detail in some instances. The Service Plan has been designed with sufficient flexibility to enable the Districts to provide required improvements, services and facilities under evolving circumstances without the need for numerous amendments. Modification of the general types of improvements and facilities making up the Public Improvements, and changes in proposed configurations, locations or dimensions of the Public Improvements, shall be permitted to accommodate development needs consistent with the then-current Approved Development Plans for the Project and any agreement approved by the City Council pursuant to the Section IV.B of this Service Plan. Any action of one or more of the Districts, which is a material modification of this Service Plan requiring a Service Plan Amendment as provided in in Section XV of this Service Plan or that does not comply with any provision of this Service Plan, shall be deemed to be a material modification to this Service Plan unless otherwise expressly provided in this Service Plan. All other departures from the provisions of this Service Plan shall be considered on a case-by-case basis as to whether such departures are a material modification under this Service Plan or the Special District Act. XV. MATERIAL MODIFICATIONS Material modifications to this Service Plan may be made only in accordance with C.R.S. Section 32-1-207 as a Service Plan Amendment. No modification shall be required for an action of the Districts that does not materially depart from the provisions of this Service Plan, unless otherwise provided in this Service Plan. Departures from the Service Plan that constitute a material modification requiring a Service Plan Amendment include, without limitation: A. Actions or failures to act that create materially greater financial risk or burden to the taxpayers of the Districts; B. Performance of a service or function, construction of an improvement, or acquisition of a major facility that is not closely related to an improvement, service, function or facility authorized in the Service Plan; C. Failure to perform a service or function, construct an improvement or acquire a facility required by the Service Plan; and D. Failure to comply with any of the prohibitions, limitations and restrictions of this Service Plan. XVI. DISSOLUTION a Packet Pg. 316 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 23 Upon independent determination by the City Council that the purposes for which any District was created have been accomplished, said District shall file a petition in district court for dissolution as provided in the Special District Act. In no event shall dissolution occur until the District has provided for the payment or discharge of all of its outstanding indebtedness and other financial obligations as required pursuant to State law. In addition, if within three (3) years from the date of the City Council’s approval of this Service Plan no agreement contemplated under Section IV.B of this Service Plan has been entered into by the City with any of the Districts and/or any Developer, despite the parties conducting good faith negotiations attempting to do so, the City may opt to pursue the remedies available to it under C.R.S. Section 32-1-701(3) in order to compel the Districts to dissolve in a prompt and orderly manner. In such event: (i) the limited purposes and powers of the Districts, as authorized herein, shall automatically terminate and be expressly limited to taking only those actions that are reasonably necessary to dissolve; (ii) the Board of each of the Districts will be deemed to have agreed with the City regarding its dissolution without an election pursuant to C.R.S. §32-1- 704(3)(b); (iii) the Districts shall take no action to contest or impede the dissolution of the Districts and shall affirmatively and diligently cooperate in securing the final dissolution of the Districts, and (iv) subject to the statutory requirements of the Special District Act, the Districts shall thereupon dissolve. XVII. SANCTIONS Should any of the Districts undertake any act without obtaining prior City Council approval or consent or City Manager approval or consent as required in this Service Plan, that constitutes a material modification to this Service Plan requiring a Service Plan Amendment as provided herein or under the Special District Act, or that does not otherwise comply with the provisions of this Service Plan, the City Council may impose one (1) or more of the following sanctions, as it deems appropriate: A. Exercise any applicable remedy under the Special District Act; B. Withhold the issuance of any permit, authorization, acceptance or other administrative approval, or withhold any cooperation, necessary for the District’s development or construction or operation of improvements or provision of services; C. Exercise any legal remedy under the terms of any intergovernmental agreement under which the District is in default; or D. Exercise any other legal and equitable remedy available under the law, including seeking prohibitory and mandatory injunctive relief against the District, to ensure compliance with the provisions of the Service Plan or applicable law. XVIII. INTERGOVERNMENTAL AGREEMENT WITH CITY Each of the Districts and the City shall enter into an intergovernmental agreement, the form of which shall be in substantially the form attached hereto as Exhibit I and incorporated by reference (the “IGA”). However, the City and the Districts may include such additional details, terms and conditions as they deem necessary in connection with the Project and the construction a Packet Pg. 317 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 24 and funding of the Public Improvements and the Public Benefits. Each of the Districts’ Boards shall approve the IGA at their first board meeting, unless agreed otherwise by the City Manager. Entering into this IGA is a precondition to each of the Districts issuing any Debt or imposing any Debt Mill Levy, Operating Mill Levy or Fee for the payment of Debt under this Service Plan. In addition, failure of any of the Districts to enter into the IGA as required herein shall constitute a material modification of this Service Plan and subject the District to the sanctions in Section XVII of this Service Plan. The City and the Districts may amend the IGA from time-to-time provided such amendment is not in conflict with any provision of this Service Plan. XIX. CONCLUSION It is submitted that this Service Plan, as required by C.R.S. Section 32-1-203(2), establishes that: A. There is sufficient existing and projected need for organized service in the Service Area to be served by the Districts; B. The existing service in the Service Area to be served by the Districts is inadequate for present and projected needs; C. The Districts are capable of providing economical and sufficient service to the Service Area; and D. The Service Area does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. XX. RESOLUTION OF APPROVAL The Districts agree to incorporate the City Council’s resolution approving this Service Plan, including any conditions on any such approval, into the copy of the Service Plan presented to the District Court for and in Larimer County, Colorado. a Packet Pg. 318 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) A-1-1 EXHIBIT A-1 LEGAL DESCRIPTION OF DISTRICT NO. 1 BOUNDARIES a Packet Pg. 319 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Field Date Prepared for: Project#: Proj. Manager # Date R e v i s i o n s Party Chief Survey Tech 532 West 66th Street Loveland, Colorado 80538 Office 970.669.2100 - Info@plscorporation.com PLS Corporation NOTICE: According to Colorado law you must commence any legal action based upon any defect in this survey within three years after you first discover such defect. In no event, may any action based upon any defect in this survey be commenced more than ten years from the date of the certification shown hereon. 16057.012-D1 N/A Highland Development Services, Inc. N/A MDG MBS see sheet 2 for exhibit sheet 1 of 2 A portion of the Southeast 1 4 of Section 1, Township 7 North, Range 69 West of the 6th P.M., City of Fort Collins, County of Larimer, State of Colorado: Considering the East line of the Southeast 1 4 of Section 1, Township 7 North, Range 69 West of the 6th P.M., as bearing N 00°16'34" E, and with all bearings contained herein being relative thereto. COMMENCING at the Southeast corner of Section 1, Township 7 North, Range 69 West of the 6th P.M.; thence N 00°16'34" E for a distance of 1067.36 feet along the East line of the Southeast 1 4 of said Section 1; thence N 89°43'26" W for a distance of 50.00 feet to a point on the Westerly right-of-way line of North Lemay Avenue; thence N 85°25'31" W for a distance of 1687.59 feet to the POINT OF BEGINNING - D1; thence N 89°11'25" W for a distance of 19.00 feet; thence N 00°48'35" E for a distance of 9.00 feet; thence S 89°11'25" E for a distance of 19.00 feet; thence S 00°48'35" W for a distance of 9.00 feet to the Point of Beginning - D1. Containing 171 sq. ft. more or less. Written by M. Bryan Short, Colorado PLS 32444 a Packet Pg. 320 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) N 85°25'31" W 1687.59' POINT OF BEGINNING - D1 S 89°11'25" E N 00°48'35" E 19.00' 9.00' N 89°11'25" W 19.00' S 00°48'35" W 9.00' District 1 ±171 sq. ft. POINT OF COMMENCEMENT, Southeast Corner of Section 1, Township 7 North, Range 69 West N 00°16'34" E 1067.36' basis of bearings East line of the Southeast 1 4 of Section 1 50.00' N 89°43'26" W West right-of-way line North Lemay Avenue North Lemay Avenue East 1 4 Corner of Section 1, Township 7 North, Range 69 West Field Date Prepared for: Project#: Proj. Manager # Date R e v i s i o n s Party Chief Survey Tech 532 West 66th Street Loveland, Colorado 80538 Office 970.669.2100 - Info@plscorporation.com PLS Corporation NOTICE: According to Colorado law you must commence any legal action based upon any defect in this survey within three years after you first discover such defect. In no event, may any action based upon any defect in this survey be commenced more than ten years from the date of the certification shown hereon. 16057.012-D1 N/A Highland Development Services, Inc. N/A MDG MBS Scale 1 inch = 50 feet 50 0 25 50 100 see sheet 1 for description sheet 2 of 2 a Packet Pg. 321 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) A-2-1 EXHIBIT A-2 LEGAL DESCRIPTION OF DISTRICT NO. 2 BOUNDARIES a Packet Pg. 322 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) P:\Project\2016\16057\dwg\16057d012_D2.dwg May 03, 2019 - 9:21am Office 970.669.2100 - Info@plscorporation.com PLS Corporation Loveland, Colorado 80538 532 West 66th Street # Date R e v i s i o n s Party Chief Survey Tech Proj. Manager Field Date Prepared for: Project#: NOTICE: According to Colorado law you must commence any legal action based upon any defect in this survey within three years after you first discover such defect. In no event, may any action based upon any defect in this survey be commenced more than ten years from the date of the certification shown hereon. Description Exhibit MBS MDG N/A N/A Highland Development Services, Inc. 16057.012-D2 see sheet 2 for exhibit sheet 1 of 2 A portion of the Southeast 1 4 of Section 1, Township 7 North, Range 69 West of the 6th P.M., City of Fort Collins, County of Larimer, State of Colorado: Considering the East line of the Southeast 1 4 of Section 1, Township 7 North, Range 69 West of the 6th P.M., as bearing N 00°16'34" E, and with all bearings contained herein being relative thereto. COMMENCING at the Southeast corner of Section 1, Township 7 North, Range 69 West of the 6th P.M.; thence N 00°16'34" E for a distance of 1067.36 feet along the East line of the Southeast 1 4 of said Section 1; thence N 89°43'26" W for a distance of 50.00 feet to a point on the Westerly right-of-way line of North Lemay Avenue to the POINT OF BEGINNING, said point also being "Point A"; thence N 89°43'26" W for a distance of 1543.20 feet to a point of a tangent curve, concave to the North, having a radius of 8500.00 feet, a chord bearing of N 87°56'46" W and a chord length of 527.39 feet; thence Westerly along the arc of said curve for a distance of 527.47 feet through a central angle of 3°33'20" to a point of tangency; thence N 86°10'06" W for a distance of 60.78 feet to the approximate centerline of Lake Canal Ditch; thence N 47°26'34" E for a distance of 1872.56 feet along said ditch centerline; thence S 41°24'11" E for a distance of 160.98 feet to a point of a non-tangent curve, concave to the Southeast, having a radius of 640.73 feet, a chord bearing N 65°12'14" E and a chord length of 334.72 feet; thence Northeasterly along the arc of said curve for a distance of 338.65 feet, through a central angle of 30°16'59" to a point of non-tangency; thence N 80°24'34" E for a distance of 111.00 feet to a point of a non-tangent curve, concave to the South, having a radius of 766.41 feet, a chord bearing N 85°20'34" E and a chord length of 131.82 feet; thence Easterly along the arc of said curve for a distance of 131.98 feet, through a central angle of 9°52'01" to a point of tangency; thence S 89°43'26" E for a distance of 106.87 feet to a point on the aforesaid Westerly right-of-way line of North Lemay Avenue; thence S 00°16'34" W for a distance of 1345.19 feet along said Westerly right-of-way line to the Point of Beginning. EXCEPT that portion described as follows; COMMENCING at the aforesaid "Point A"; thence N 85°25'31" W for a distance of 1687.59 feet to the POINT OF BEGINNING - D1; thence N 89°11'25" W for a distance of 19.00 feet; thence N 00°48'35" E for a distance of 9.00 feet; thence S 89°11'25" E for a distance of 19.00 feet; thence S 00°48'35" W for a distance of 9.00 feet to the Point of Beginning - D1. ALSO EXCEPT that potion described as follows; COMMENCING at the aforesaid "Point A"; thence N 84°48'57" W for a distance of 1688.87 feet to the POINT OF BEGINNING - D3; N 89°43'26" W 50.00' POINT OF BEGINNING - D2 POINT OF COMMENCEMENT "Point A" N 85°25'31" W 1687.59' N 84°48'57" W 1688.87' N 47°26'34" E 1872.56' L2 C2 L3 C3 L4 S 00°16'34" W 1345.19' N 89°43'26" W 1543.20' C1 L1 West right-of-way line North Lemay Avenue District 2 ±43.074 acres see Detail this sheet approximate centerline of Lake Canal Ditch North Lemay Avenue POINT OF COMMENCEMENT, Southeast Corner of Section 1, Township 7 North, Range 69 West 1067.36' N 0°16'34" E basis of bearings East line of the Southeast 1 4 of Section 1 Line Table Line # L1 L2 L3 L4 L5 L6 L7 L8 L9 L10 L11 L12 Length 60.78' 160.98' 111.00' 106.87' 19.00' 9.00' 19.00' A-3-1 EXHIBIT A-3 LEGAL DESCRIPTION OF DISTRICT NO. 3 BOUNDARIES a Packet Pg. 325 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) P:\Project\2016\16057\dwg\16057d012_D3.dwg May 03, 2019 - 9:23am Office 970.669.2100 - Info@plscorporation.com PLS Corporation Loveland, Colorado 80538 532 West 66th Street # Date R e v i s i o n s Party Chief Survey Tech Proj. Manager Field Date Prepared for: Project#: NOTICE: According to Colorado law you must commence any legal action based upon any defect in this survey within three years after you first discover such defect. In no event, may any action based upon any defect in this survey be commenced more than ten years from the date of the certification shown hereon. Description Exhibit MBS MDG N/A N/A Highland Development Services, Inc. 16057.012-D3 A portion of the Southeast 1 4 of Section 1, Township 7 North, Range 69 West of the 6th P.M., City of Fort Collins, County of Larimer, State of Colorado: Considering the East line of the Southeast 1 4 of Section 1, Township 7 North, Range 69 West of the 6th P.M., as bearing N 00°16'34" E, and with all bearings contained herein being relative thereto. COMMENCING at the Southeast corner of Section 1, Township 7 North, Range 69 West of the 6th P.M.; thence N 00°16'34" E for a distance of 1067.36 feet along the East line of the Southeast 1 4 of said Section 1; thence N 89°43'26" W for a distance of 50.00 feet to a point on the Westerly right-of-way line of North Lemay Avenue to the POINT OF BEGINNING, said point also being "Point A"; thence N 89°43'26" W for a distance of 1543.20 feet to a point of a tangent curve, concave to the North, having a radius of 8500.00 feet, a chord bearing of N 87°56'46" W and a chord length of 527.39 feet; thence Westerly along the arc of said curve for a distance of 527.47 feet, through a central angle of 3°33'20" to a point of tangency; thence N 86°10'06" W for a distance of 60.78 feet to the approximate centerline of Lake Canal Ditch; thence S 47°26'34" W for a distance of 129.78 feet along said ditch centerline; thence S 43°44'54" W for a distance of 174.33 feet along said ditch centerline; thence S 30°52'19" W for a distance of 74.72 feet along said ditch centerline; thence S 89°46'46" E for a distance of 1478.15 feet to the West line of the ALTA VISTA SUBDIVISION, public records County of Larimer, State of Colorado; thence N 00°22'54" E for a distance of 100.00 feet along said West line to the North line of said ALTA VISTA SUBDIVISION; thence S 89°37'06" E for a distance of 625.00 feet along said North line to the East line of said ALTA VISTA SUBDIVISION; thence S 00°35'47" W for a distance of 100.26 feet along said East line; thence S 89°40'17" E for a distance of 281.38 feet to a point on the aforesaid Westerly right-of-way line of North Lemay Avenue; thence N 00°16'34" E for a distance of 259.17 feet along said Westerly right-of-way line to the Point of Beginning. AND that potion described as follows; COMMENCING at the aforesaid "Point A"; thence N 84°48'57" W for a distance of 1688.87 feet to the POINT OF BEGINNING - D3; thence N 89°11'25" W for a distance of 19.00 feet; thence N 00°48'35" E for a distance of 9.00 feet; thence S 89°11'25" E for a distance of 19.00 feet; thence S 00°48'35" W for a distance of 9.00 feet to the Point of Beginning - D3. Containing 12.185 acres more or less. Written by M. Bryan Short, Colorado PLS 32444 see sheet 2 for exhibit sheet 1 of 2 N 89°43'26" W 50.00' POINT OF BEGINNING POINT OF COMMENCEMENT "Point A" see Detail this sheet N 89°43'26" W 1543.20' R=8500.00' L=527.47' =3°33'20" Ch=527.39' CB=N 87°56'46" W N 86°10'06" W S 47°26'34" W 60.78' 129.78' S 43°44'54" W 174.33' S 30°52'19" W 74.72' S 89°46'46" E 1478.15' N 00°22'54" E 100.00' S 89°37'06" E 625.00' S 00°35'47" W 100.26' S 89°40'17" E 281.38' N 00°16'34" E 259.17' North Lemay Avenue N 84°48'57" W 1688.87' District 3 ±12.185 acres approximate centerline of Lake Canal Ditch West right-of-way line North Lemay Avenue West line of ALTA VISTA SUBDIVISION North line of ALTA VISTA SUBDIVISION East line of ALTA VISTA SUBDIVISION ALTA VISTA SUBDIVISION POINT OF COMMENCEMENT, Southeast Corner of Section 1, Township 7 North, Range 69 West N 00°16'34" E 1067.36' basis of bearings East line of the Southeast 1 4 of Section 1 East 1 4 Corner of Section 1, Township 7 North, Range 69 West N 84°48'57" W 1688.87' POINT OF BEGINNING - D3 B-1-1 EXHIBIT B-1 DISTRICT NO. 1 BOUNDARY MAP a Packet Pg. 328 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) LAKE CANAL N. LEMAY AVENUE E. SUNIGA ROAD N W E S LEGEND NORTHFIELD METRO DISTRICT BOUNDARY DISTRICT 1 171 SQ. FT. 0.004 AC. DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD DISTRICT 1 AREA BOUNDARY MAP 04/26/2019 1" = 300' KRB 18-1000-00 B-1 1 3 SCALE 1" = 150 0 300' 300 DISTRICT 1 ENLARGEMENT SCALE: 1" = 100' a Packet Pg. 329 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) B-2-1 EXHIBIT B-2 DISTRICT NO. 2 BOUNDARY MAP a Packet Pg. 330 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) LAKE CANAL DISTRICT 2 1,876,098 SQ. FT. 43.07 AC. N. LEMAY AVENUE E. SUNIGA ROAD N W E S LEGEND NORTHFIELD METRO DISTRICT BOUNDARY DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD DISTRICT 2 AREA BOUNDARY MAP 04/26/2019 1" = 300' KRB 18-1000-00 B-2 2 3 SCALE 1" = 150 0 300' 300 a Packet Pg. 331 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) B-3-1 EXHIBIT B-3 DISTRICT NO. 3 BOUNDARY MAP a Packet Pg. 332 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) LAKE CANAL DISTRICT 3 531,283 SQ. FT. 12.20 AC. N. LEMAY AVENUE E. SUNIGA ROAD N W E S LEGEND NORTHFIELD METRO DISTRICT BOUNDARY DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD DISTRICT 3 AREA BOUNDARY MAP 04/26/2019 1" = 300' KRB 18-1000-00 B-3 3 3 SCALE 1" = 150 0 300' 300 DISTRICT 3 171 SQ. FT. 0.004 AC. DISTRICT 3 ENLARGEMENT SCALE: 1" = 100' a Packet Pg. 333 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) C-1 EXHIBIT C VICINITY MAP a Packet Pg. 334 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) PROPOSED NORTHFIELD METRO DISTRICT N W E S DEVELOPMENT HIGHLAND SERVCIES 6355 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD VICINITY MAP 04/30/2019 1" = 1000' KRB 18-1000-00 EXHIBIT C 1 1 0 SCALE: 1" = 1000' 500 1000 a Packet Pg. 335 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) D-1 EXHIBIT D PUBLIC IMPROVEMENT COST ESTIMATES a Packet Pg. 336 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Summary Estimate of Preliminary District Expenditures Design Engineer: K. Brigman Design Firm: Highland Development Services Project Number: 18-1000-00 Date: August 23, 2019 No. Quantity Units Unit Cost Total 1 0.805 LS $ 1,500,000.00 $ 1,207,500.00 Clearing, Grubbing, and Topsoil Stripping 45 AC $ 12,000.00 $ 540,960.00 201,250 CY $ 6.00 $ 1,207,500.00 Import Fill Dirt 161,000 CY $ 15.00 $ 2,415,000.00 0.805 LS $ 25,000.00 $ 20,125.00 $ 5,391,085.00 2 Metro District Owned Drives (24' Section) LF $ 205.00 $ - LF $ 225.00 $ - 4,264 LF $ 430.00 $ 1,833,520.00 Connector Local Street with Median (65' Section) 450 LF $ 550.00 $ 247,500.00 2,160 LF $ 346.00 $ 747,360.00 On-Site Suniga Rd 4-lane Arterial Upsizing (83' Section) LF $ 779.00 $ - LF $ 715.00 $ - 1 LS $ 250,000.00 $ 250,000.00 Signage and Striping 1 LS $ 25,000.00 $ 25,000.00 $ 3,103,380.00 3 2,260 LF $ 50.00 $ 113,000.00 8" Waterline 7,760 LF $ 65.00 $ 504,400.00 - LF $ 85.00 - - LF $ 100.00 - - LF $ 2,000.00 - - LS $ - - $ 617,400.00 4 6,356 LF $ 90.00 $ 572,040.00 1,484 LF $ 100.00 $ 148,400.00 12" Sanitary Sewer - LF $ 112.00 - 8" Subdrain - LF $ 75.00 - Existing 15" to 18" Sanitary Sewer Upsize LF $ 150.00 $ - LF $ 180.00 $ - $ 720,440.00 5 7,890 LF $ 190.00 $ 1,499,100.00 Outlet/Control Structure 9 EA $ 10,000.00 $ 90,000.00 LID Infiltration Galleries 3 EA $ 100,000.00 $ 300,000.00 $ 1,889,100.00 Subtotal Subtotal Sanitary Sewer Improvements 8" Sanitary Sewer RCP Storm Sewer Subtotal 10" Sanitary Sewer 10" Waterline On-Site Suniga Rd 2-lane Connector w/ Median (65' Section) Storm Drainage Improvements 12" Waterline Utility Borings Raw Water Requirements Existing 18" to 24" Sanitary Sewer Upsize Potable Waterline Improvements 6 AC $ - Landscaped Open Space 8.5 AC $ 110,000.00 $ 935,000.00 SF $ 15.00 $ - 1 LS $ 75,000.00 $ 75,000.00 LS $ 125,000.00 - Clubhouse/Pool LS $ 2,000,000.00 $ - $ 1,010,000.00 7 1 LS $ 1,274,000.00 $ 1,274,000.00 Construction Management / Inspection / Testing 1 LS $ 1,910,000.00 $ 1,910,000.00 1 LS $ 382,000.00 $ 382,000.00 $ 3,566,000.00 $ 16,297,405.00 Contingency (20%) $ 3,259,485.00 Total Cost $ 19,556,890.00 Subtotal Alta Vista Subdivision Buffer Area Monument Signs Regional Trails Engineering / Surveying Admin. / Planning / Permitting Natural Area Open Space Subtotal Admin. / Design / Permitting / Etc. Open Space, Parks, and Trails Infrastructure Subtotal a Packet Pg. 338 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Summary Estimate of Preliminary District Expenditures Design Engineer: K. Brigman Design Firm: Highland Development Services Project Number: 18-1000-00 Date: August 23, 2019 No. Quantity Units Unit Cost Total 1 LS $ 1,500,000.00 $ - Clearing, Grubbing, and Topsoil Stripping AC $ 12,000.00 $ - CY $ 6.00 $ - Import Fill CY $ 15.00 $ - LS $ 25,000.00 $ - $ - 2 Metro District Owned Drives (24' Section) 3,960 LF $ 112.00 $ 443,520.00 2,880 LF $ 131.00 $ 377,280.00 LF $ 430.00 $ - Connector Local Street with Median (65' Section) LF $ 550.00 $ - LF $ 346.00 $ - On-Site Suniga Rd 4-lane Arterial Upsizing (83' Section) 2,160 LF $ 779.00 $ 1,682,640.00 520 LF $ 1,490.00 $ 774,800.00 LS $ 250,000.00 $ - Signage and Striping LS $ 25,000.00 $ - $ 3,278,240.00 3 LF $ 50.00 $ - 8" Waterline LF $ 65.00 $ - - LF $ 85.00 - - LF $ 100.00 - - LF $ 2,000.00 - - LS $ - - $ - 4 LF $ 90.00 $ - LF $ 100.00 $ - 12" Sanitary Sewer - LF $ 112.00 - 8" Subdrain - LF $ 75.00 - Existing 15" to 18" Sanitary Sewer Upsize 565 LF $ 176.00 $ 99,440.00 2,130 LF $ 206.00 $ 438,780.00 - LS - $ 538,220.00 5 LF $ 190.00 $ - Outlet/Control Structure EA $ 10,000.00 $ - LID Infiltration Galleries EA $ 100,000.00 $ - $ - Grading/Miscellaneous On-Site Suniga Rd 2-lane Connector w/ Median (65' Section) NON-BASIC PUBLIC IMPROVEMENT COSTS FOR NORTHFIELD METRO DISTRICT NOS. 1-3 The units and cost below are best assumptions based on the level of information available at this time in design. Street section in reference to LCUASS Connector Local street section, and pavement section in reference to geotech report Public Improvements Description Potable Waterline Improvements Mobilization / General Conditions Earthwork (cut/fill/place) Erosion Control / Traffic Control Subtotal Roadway Improvements Metro District Owned Drives (26' Section) 6 - AC $ - Landscaped Open Space 6.6 AC $ 110,000.00 $ 723,800.00 13,270 SF $ 15.00 $ 199,050.00 LS $ 75,000.00 $ - 1 LS $ 125,000.00 $ 125,000.00 1 LS $ 2,000,000.00 $ 2,000,000.00 $ 3,047,850.00 7 1 LS $ 687,000.00 $ 687,000.00 Construction Management / Inspection / Testing 1 LS $ 1,030,000.00 $ 1,030,000.00 1 LS $ 206,000.00 $ 206,000.00 $ 1,923,000.00 $ 8,787,310.00 Contingency (20%) $ 1,757,465.00 Total Cost $ 10,544,775.00 Open Space, Parks, and Trails Natural Area Open Space Subtotal Infrastructure Subtotal Monument Signs Alta Vista Subdivision Buffer Area Subtotal Admin. / Design / Permitting / Etc. Engineering / Surveying Admin. / Planning / Permitting Clubhouse/Pool Regional Trails a Packet Pg. 340 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) E-1 EXHIBIT E PUBLIC IMPROVEMENT MAPS a Packet Pg. 341 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) N. LEMAY AVENUE E. SUNIGA ROAD LEGEND COLLECTOR LOCAL STREETS (57' WIDE PUBLIC RIGHT-OF-WAY) NORTHFIELD METRO DISTRICT BOUNDARY 4-LANE ARTERIAL (115' WIDE PUBLIC RIGHT-OF-WAY) COLLECTOR LOCAL STREET WITH MEDIAN (86' WIDE PUBLIC RIGHT-OF-WAY) N W E S DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD STREETS MAP 04/29/2019 1" = 300' KRB 18-1000-00 E-1 1 5 SCALE 1" = 150 0 300' 300 PRIVATE DRIVES (26' WIDE SECTION) PRIVATE DRIVES (24' WIDE SECTION) a Packet Pg. 342 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) N. LEMAY AVENUE E. SUNIGA ROAD LAKE CANAL LEGEND WATER LINE - 8" PVC ALL WATER OWNED AND MAINTAINED BY FORT COLLINS UTILITIES NORTHFIELD METRO DISTRICT BOUNDARY N W E S DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD POTABLE WATER MAP 04/30/2019 1" = 300' KRB 18-1000-00 E-2 2 5 SCALE 1" = 150 0 300' EXISTING WATER LINE (SIZE AS LABELED) 300 a Packet Pg. 343 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) N. LEMAY AVENUE E. SUNIGA ROAD LAKE CANAL LEGEND SEWER LINE - 8" PVC ALL SEWER OWNED AND MAINTAINED BY FORT COLLINS UTILITIES NORTHFIELD METRO DISTRICT BOUNDARY EXISTING SEWER LINE (SIZE AS LABELED) SEWER LINE - 10" PVC ALL SEWER OWNED AND MAINTAINED BY FORT COLLINS UTILITIES N W E S DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD SANITARY SEWER MAP 04/30/2019 1" = 300' KRB 18-1000-00 E-3 3 5 SCALE 1" = 150 0 300' 300 a Packet Pg. 344 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) LAKE CANAL N. LEMAY AVENUE E. SUNIGA ROAD LEGEND RCP STORM DRAIN LINE (SIZES TO BE DETERMINED AT FINAL DESIGN) NORTHFIELD METRO DISTRICT BOUNDARY EXISTING STORM DRAIN LINE DETENTION AREAS LOW IMPACT DEVELOPMENT (LID) AREAS N W E S DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD STORM DRAINAGE MAP 04/30/2019 1" = 300' KRB 18-1000-00 E-4 4 5 SCALE 1" = 150 0 300' 300 a Packet Pg. 345 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) LAKE CANAL N. LEMAY AVENUE E. SUNIGA ROAD LEGEND CONNECTIVITY LANDSCAPING WITH TRAILS NORTHFIELD METRO DISTRICT BOUNDARY STREETS WITH TREE LAWN AREAS LANDSCAPED OPEN SPACE N W E S DEVELOPMENT HIGHLAND SERVCIES 6341 FAIRGROUNDS AVENUE, SUITE 100 | WINDSOR, CO 80550 PHONE: 970.674.7550 | FAX: 970.674.7568 | www.Highland-DS.com DRAWN BY DATE SCALE (H) HDS PROJ # SHEET OF NORTHFIELD OPEN SPACE, PARKS, & TRAILS MAP 04/30/2019 1" = 300' KRB 18-1000-00 E-5 5 5 SCALE 1" = 150 0 300' 300 a Packet Pg. 346 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) F-1 EXHIBIT F FINANCIAL PLAN a Packet Pg. 347 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) NORTHFIELD METROPOLITAN DISTRICT 1 Development Projection at 40.000 (target) Mills for Debt Service -- Service Plan 2050 Series 2030, G.O. Bonds, Pay & Cancel Refg of (proposed) Series 2020 + New Money, Assumes Investment Grade, 100x, 30-yr. Maturity 2049 0 < < < < < < < < Residential > > > > > > > > < Platted/Developed Lots > < < < < < < < < < < Commercial > > > > > > > > > > Mkt Value As'ed Value As'ed Value Mkt Value As'ed Value District District District Biennial @ 7.20% @ 29.00% Biennial @ 29.00% Total D/S Mill Levy D/S Mill Levy S.O. Taxes Total Total Reasses'mt Cumulative of Market Cumulative of Market Total Comm'l Reasses'mt Cumulative of Market Assessed [40.000 Target] Collections Collected Available YEAR Res'l Units @ 6.0% Market Value (2-yr lag) Market Value (2-yr lag) Sq. Ft. @ 6.0% Market Value (2-yr lag) Value [40.000 Cap] @ 98% @ 6% Revenue 2018 0 0 0 0 0 0 2019 0 0 1,070,551 0 0 0 2020 34 0 10,705,512 0 4,858,199 0 0 0 0 0 $0 40.000 0 0 0 2021 145 60,259,140 0 4,032,990 310,460 0 0 0 310,460 40.000 12,170 730 12,900 2022 115 3,615,548 105,206,784 770,797 3,277,464 1,408,878 2,679 0 627,127 0 2,179,675 40.000 85,443 5,127 90,570 2023 88 139,987,494 4,338,658 1,965,346 1,169,567 0 627,127 0 5,508,225 40.000 215,922 12,955 228,878 2024 54 8,399,250 169,660,283 7,574,888 215,424 950,465 0 37,628 664,755 181,867 8,707,220 40.000 341,323 20,479 361,802 2025 6 172,038,738 10,079,100 0 569,950 0 664,755 181,867 10,830,917 40.000 424,572 25,474 450,046 2026 0 10,322,324 182,361,062 12,215,540 0 62,473 0 39,885 704,640 192,779 12,470,792 40.000 488,855 29,331 518,186 2027 0 182,361,062 12,386,789 0 0 0 704,640 192,779 12,579,568 40.000 493,119 29,587 522,706 2028 0 10,941,664 193,302,726 13,129,996 0 0 0 42,278 746,918 204,346 13,334,342 40.000 522,706 31,362 554,069 2029 0 193,302,726 13,129,996 0 0 0 746,918 204,346 13,334,342 40.000 522,706 31,362 554,069 2030 0 11,598,164 204,900,890 13,917,796 0 0 0 44,815 791,734 216,606 14,134,403 40.000 554,069 33,244 587,313 2031 0 204,900,890 13,917,796 0 0 0 791,734 216,606 14,134,403 40.000 554,069 33,244 587,313 2032 0 12,294,053 217,194,943 14,752,864 0 0 0 47,504 839,238 229,603 14,982,467 40.000 587,313 35,239 622,551 2033 0 217,194,943 14,752,864 0 0 0 839,238 229,603 14,982,467 40.000 587,313 35,239 622,551 2034 0 13,031,697 230,226,639 15,638,036 0 0 0 50,354 889,592 243,379 15,881,415 40.000 622,551 37,353 659,905 2035 0 230,226,639 15,638,036 0 0 0 889,592 243,379 15,881,415 40.000 622,551 37,353 659,905 2036 0 13,813,598 244,040,238 16,576,318 0 0 0 53,376 942,967 257,982 16,834,300 40.000 659,905 39,594 699,499 2037 0 244,040,238 16,576,318 0 0 0 942,967 257,982 16,834,300 40.000 659,905 39,594 699,499 2038 0 14,642,414 258,682,652 17,570,897 0 0 0 56,578 999,545 273,461 17,844,358 40.000 699,499 41,970 741,469 2039 258,682,652 17,570,897 0 0 999,545 273,461 17,844,358 40.000 699,499 41,970 741,469 2040 15,520,959 274,203,611 18,625,151 0 0 59,973 1,059,518 289,868 18,915,019 40.000 741,469 44,488 785,957 2041 274,203,611 18,625,151 0 0 1,059,518 289,868 18,915,019 40.000 741,469 44,488 785,957 2042 16,452,217 290,655,828 19,742,660 0 0 63,571 1,123,089 307,260 20,049,920 40.000 785,957 47,157 833,114 2043 290,655,828 19,742,660 0 0 1,123,089 307,260 20,049,920 40.000 785,957 47,157 833,114 2044 17,439,350 308,095,178 20,927,220 0 0 67,385 1,190,474 325,696 21,252,915 40.000 833,114 49,987 883,101 2045 308,095,178 20,927,220 0 0 1,190,474 325,696 21,252,915 40.000 833,114 49,987 883,101 2046 18,485,711 326,580,888 22,182,853 0 0 71,428 1,261,903 345,238 22,528,090 40.000 883,101 52,986 936,087 2047 326,580,888 22,182,853 0 0 1,261,903 345,238 22,528,090 40.000 883,101 52,986 936,087 2048 19,594,853 346,175,742 23,513,824 0 0 75,714 1,337,617 365,952 23,879,776 40.000 936,087 56,165 992,252 2049 346,175,742 23,513,824 0 0 1,337,617 365,952 23,879,776 40.000 936,087 56,165 992,252 2050 20,770,544 366,946,286 24,924,653 0 0 80,257 1,417,874 387,909 25,312,562 40.000 992,252 59,535 1,051,788 2051 366,946,286 24,924,653 0 0 1,417,874 387,909 25,312,562 40.000 992,252 59,535 1,051,788 2052 22,016,777 388,963,063 26,420,133 0 0 85,072 1,502,947 411,184 26,831,316 40.000 1,051,788 63,107 1,114,895 2053 388,963,063 26,420,133 0 0 1,502,947 411,184 26,831,316 40.000 1,051,788 63,107 1,114,895 2054 23,337,784 412,300,847 28,005,341 0 0 90,177 1,593,123 435,855 28,441,195 40.000 1,114,895 66,894 1,181,789 2055 412,300,847 28,005,341 0 0 1,593,123 435,855 28,441,195 40.000 1,114,895 66,894 1,181,789 2056 24,738,051 437,038,898 29,685,661 0 0 95,587 1,688,711 462,006 30,147,667 40.000 1,181,789 70,907 1,252,696 2057 437,038,898 29,685,661 0 0 1,688,711 462,006 30,147,667 40.000 1,181,789 70,907 1,252,696 2058 26,222,334 463,261,232 31,466,801 0 0 101,323 1,790,033 489,726 31,956,527 40.000 1,252,696 75,162 1,327,858 2059 463,261,232 31,466,801 0 0 1,790,033 489,726 31,956,527 40.000 1,252,696 75,162 1,327,858 2060 27,795,674 491,056,906 33,354,809 0 0 107,402 1,897,435 519,110 33,873,918 40.000 1,327,858 79,671 1,407,529 ______ __________ __________ __________ __________ __________ __________ 442 331,032,966 2,679 1,270,308 30,227,642 1,813,659 32,041,301 4/25/2019 C NMD Fin Plan 19 NR SP Fin Plan+2030 IG Refg Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 1 2050 2049 0 YEAR 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 NORTHFIELD METROPOLITAN DISTRICT Development Projection at 40.000 (target) Mills for Debt Service -- Service Plan Series 2030, G.O. Bonds, Pay & Cancel Refg of (proposed) Series 2020 + New Money, Assumes Investment Grade, 100x, 30-yr. Maturity Series 2020 Ser. 2030 $10,020,000 Par $14,870,000 Par Surplus Senior Senior Cov. of Net DS: Cov. of Net DS: [Net $7.098 MM] [Net $5.829 MM] Total Annual Release Cumulative Debt/ Debt/ @ 40.000 Target @ 40.000 Cap Net Available Net Debt [Escr $9.790 MM] Net Debt Funds on Hand* Surplus 50% D/A Surplus Assessed Act'l Value & 0.0 U.R.A. Mills & 0.0 U.R.A. Mills for Debt Svc Service Net Debt Service Service Used as Source to $1,487,000 $1,487,000 Target Ratio Ratio & Sales PIF Revs & Sales PIF Revs 0 n/a 0 n/a 0 $0 0 0 0 3227% 16% 0.0% 0.0% 12,900 0 0 12,900 0 12,900 460% 9% 0.0% 0.0% 1 2050 2049 0 YEAR 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 NORTHFIELD METROPOLITAN DISTRICT Operations Revenue and Expense Projection Total Total S.O. Tax Total Assessed Oper'ns Collections Collections Available Total Value Mill Levy @ 98% @ 98% For O&M Mills 0 10.000 0 0 0 50.000 310,460 10.000 3,043 2,982 6,024 50.000 2,179,675 10.000 21,361 20,934 42,294 50.000 5,508,225 10.000 53,981 52,901 106,882 50.000 8,707,220 10.000 85,331 83,624 168,955 50.000 10,830,917 10.000 106,143 104,020 210,163 50.000 12,470,792 10.000 122,214 119,769 241,983 50.000 NORTHFIELD METROPOLITAN DISTRICT Development Summary Development Projection -- Buildout Plan (updated 4/25/19) Residential Development Commercial Development Product Type Stacked Condos Flats Brownstones Value Condo Deed Restricted Condo MU - Studio Apts (For Rent) MU - Retail Base $ ('20) $306,714 $359,040 $388,518 $316,200 $265,200 $200,000 $225/sf Res'l Totals Comm'l Totals 2018 - - - - - - - - - 2019 - - - - - - - - - 2020 12 - 8 4 10 - 34 - - 2021 28 36 42 8 31 - 145 - - 2022 - 45 40 4 24 2 115 2,679 2,679 2023 - 48 40 - - - 88 - - 2024 - 45 9 - - - 54 - - 2025 - 6 - - - - 6 - - 2026 - - - - - - - - - 2027 - - - - - - - - - 2028 - - - - - - - - - 2029 - - - - - - - - - 2030 - - - - - - - - - 40 180 139 16 65 2 442 2,679 2,679 MV @ Full Buildout $12,268,560 $64,627,200 $54,004,002 $5,059,200 $17,238,000 $400,000 $153,596,962 $602,775 $602,775 (base prices;un-infl.) notes: Platted/Dev Lots = 10% MV; one-yr prior Base MV $ inflated 2% per annum 4/25/2019 C NMD Fin Plan 19 Dev Summ Prepared by D.A. Davidson & Co. 4 a Packet Pg. 351 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) NORTHFIELD METROPOLITAN DISTRICT 2050 Development Projection -- Buildout Plan (updated 4/25/19) 100% 0 Ph Residential Development Stacked Condos Flats Brownstones Value Condo Incr/(Decr) in Incr/(Decr) in Incr/(Decr) in Incr/(Decr) in Finished Lot # Units Price Finished Lot # Units Price Finished Lot # Units Price Finished Lot # Units Price # Lots Value @ Completed Inflated @ Market # Lots Value @ Completed Inflated @ Market # Lots Value @ Completed Inflated @ Market # Lots Value @ Completed Inflated @ Market YEAR Devel'd 10% 40 target 2% Value Devel'd 10% 180 target 2% Value Devel'd 10% 139 target 2% Value Devel'd 10% 16 target 2% Value 2018 0 0 $306,714 0 0 0 $359,040 0 0 0 $388,518 0 0 0 $316,200 0 2019 12 368,057 306,714 0 0 0 359,040 0 8 310,814 388,518 0 4 126,480 316,200 0 2020 28 490,742 12 306,714 3,680,568 36 1,292,544 0 359,040 0 42 1,320,961 8 388,518 3,108,144 8 126,480 4 316,200 1,264,800 2021 0 (858,799) 28 312,848 8,759,752 45 323,136 36 366,221 13,183,949 40 (77,704) 42 396,288 16,644,111 4 (126,480) 8 322,524 2,580,192 2022 0 0 0 319,105 0 48 107,712 45 373,545 16,809,535 40 0 40 404,214 16,168,565 0 (126,480) 4 328,974 1,315,898 2023 0 0 0 325,487 0 45 (107,712) 48 381,016 18,288,774 9 (1,204,406) 40 412,298 16,491,936 0 0 0 335,554 0 2024 0 0 0 331,997 0 6 (1,400,256) 45 388,636 17,488,640 0 (349,666) 9 420,544 3,784,899 0 0 0 342,265 0 2025 0 0 0 338,637 0 0 (215,424) 6 396,409 2,378,455 0 0 0 428,955 0 0 0 0 349,110 0 2026 0 0 0 345,410 0 0 0 0 404,337 0 0 0 0 437,534 0 0 0 0 356,093 0 2027 0 0 0 352,318 0 0 0 0 412,424 0 0 0 0 446,285 0 0 0 0 363,214 0 2028 0 0 0 359,364 0 0 0 0 420,673 0 0 0 0 455,211 0 0 0 0 370,479 0 2029 0 0 0 366,552 0 0 0 0 429,086 0 0 0 0 464,315 0 0 0 0 377,888 0 2030 0 0 0 373,883 0 0 0 0 437,668 0 0 0 0 473,601 0 0 0 0 385,446 0 2031 0 0 0 381,360 0 0 0 0 446,421 0 0 0 0 483,073 0 0 0 0 393,155 0 2032 0 0 0 388,988 0 0 0 0 455,350 0 0 0 0 492,735 0 0 0 0 401,018 0 2033 0 0 0 396,767 0 0 0 0 464,457 0 0 0 0 502,589 0 0 0 0 409,038 0 2034 0 0 0 404,703 0 0 0 0 473,746 0 0 0 0 512,641 0 0 0 0 417,219 0 2035 0 0 0 412,797 0 0 0 0 483,221 0 0 0 0 522,894 0 0 0 0 425,564 0 2036 0 0 0 421,053 0 0 0 0 492,885 0 0 0 0 533,352 0 0 0 0 434,075 0 2037 0 0 0 429,474 0 0 0 0 502,743 0 0 0 0 544,019 0 0 0 0 442,756 0 2038 0 0 438,063 0 0 0 512,798 0 0 0 554,899 0 0 0 451,611 0 ______ _________ ______ _________ ______ _________ ______ _________ _____ _________ ______ _________ _____ _________ ______ _________ 40 0 40 12,440,320 180 (0) 180 68,149,352 139 (0) 139 56,197,656 16 0 16 5,160,890 4/25/2019 C NMD Fin Plan 19 Abs Prepared by D.A. Davidson & Co. 5 a Packet Pg. 352 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 2050 100% 0 Ph YEAR 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 NORTHFIELD METROPOLITAN DISTRICT Development Projection -- Buildout Plan (updated 4/25/19) Residential Summary Deed Restricted Condo MU - Studio Apts (For Rent) Incr/(Decr) in Incr/(Decr) in Finished Lot # Units Price Finished Lot # Units Price Total # Lots Value @ Completed Inflated @ Market # Lots Value @ Completed Inflated @ Market Residential Total Total Total Total Devel'd 10% 65 target 2% Value Devel'd 10% 2 target 2% Value Market Value SFD Units SFA Units MFD Units Res'l Units 0 0 $265,200 0 0 0 $200,000 0 $0 0 0 0 0 10 265,200 265,200 0 0 0 200,000 0 0 0 0 0 0 31 556,920 10 265,200 2,652,000 0 0 200,000 0 10,705,512 0 34 0 34 24 (185,640) 31 270,504 8,385,624 2 40,000 204,000 0 49,553,628 0 145 0 145 0 (636,480) 24 275,914 6,621,938 0 (40,000) 2 208,080 416,160 41,332,096 0 113 2 115 0 0 0 281,432 0 0 0 0 212,242 0 34,780,710 0 88 0 88 0 0 0 287,061 0 0 0 0 216,486 0 21,273,539 0 54 0 54 0 0 0 292,802 0 0 0 0 220,816 0 2,378,455 0 6 0 6 0 0 0 298,658 0 0 0 0 225,232 0 0 0 0 0 0 0 0 0 304,631 0 0 0 0 229,737 0 0 0 0 0 0 0 0 0 310,724 0 0 0 0 234,332 0 0 0 0 0 0 0 0 0 316,939 0 0 0 0 239,019 0 0 0 0 0 0 0 0 0 323,277 0 0 0 0 243,799 0 0 0 0 0 0 0 0 0 329,743 0 0 0 0 248,675 0 0 0 0 0 0 0 0 0 336,338 0 0 0 0 253,648 0 0 0 0 0 0 0 0 0 343,064 0 0 0 0 258,721 0 0 0 0 0 0 0 0 0 349,926 0 0 0 0 263,896 0 0 0 0 0 0 0 0 0 356,924 0 0 0 0 269,174 0 0 0 0 0 0 0 0 0 364,063 0 0 0 0 274,557 0 0 0 0 0 0 0 0 0 371,344 0 0 0 0 280,048 0 0 0 0 0 0 0 0 378,771 0 0 0 285,649 0 0 0 0 0 0 ____ _________ ______ _________ _____ ________ ______ _________ ___________ ______ ______ ______ ______ 65 (0) 65 17,659,562 2 0 2 416,160 160,023,940 0 440 2 442 4/25/2019 C NMD Fin Plan 19 Abs Prepared by D.A. Davidson & Co. 6 a 2050 100% 0 Ph YEAR 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 NORTHFIELD METROPOLITAN DISTRICT Development Projection -- Buildout Plan (updated 4/25/19) Commercial Development MU - Retail Incr/(Decr) in Finished Lot Square Ft per Sq Ft, Total Total Value of Platted & SF Value @ Completed Inflated @ Market Commercial Commercial Developed Lots Devel'd 10% 2,679 2% Value Market Value Sq Ft Adjustment 1 Adjusted Value 0 0 $225.00 $0 0 0 0 0 0 0 225.00 0 0 0 0 1,070,551 0 0 225.00 0 0 0 0 3,787,648 2,679 60,278 229.50 0 0 0 0 (825,209) 0 (60,278) 2,679 234.09 627,127 627,127 2,679 0 (755,526) 0 0 0 238.77 0 0 0 0 (1,312,118) 0 0 0 243.55 0 0 0 0 (1,749,922) 0 0 0 248.42 0 0 0 0 (215,424) 0 0 0 253.39 0 0 0 0 0 0 0 0 258.45 0 0 0 0 0 0 0 0 263.62 0 0 0 0 0 0 0 0 268.90 0 0 0 0 0 0 0 0 274.27 0 0 0 0 0 0 0 0 279.76 0 0 0 0 0 0 0 0 285.35 0 0 0 0 0 0 0 0 291.06 0 0 0 0 0 0 0 0 296.88 0 0 0 0 0 0 0 0 302.82 0 0 0 0 0 0 0 0 308.88 0 0 0 0 0 0 0 0 315.05 0 0 0 0 0 0 0 321.36 0 0 0 0 0 ______ _________ ________ _________ _________ _________ _________ _________ 2,679 0 2,679 627,127 627,127 2,679 0 0 [1] Adj. to actual/prelim. AV Commercial Summary Apr 25, 2019 11:06 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-20NRSPC) SOURCES AND USES OF FUNDS NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION BONDS, SERIES 2020 40.000 (target) Mills Non-Rated, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Dated Date 12/01/2020 Delivery Date 12/01/2020 Sources: Bond Proceeds: Par Amount 10,020,000.00 10,020,000.00 Uses: Project Fund Deposits: Project Fund 7,098,193.75 Other Fund Deposits: Capitalized Interest Fund 1,503,000.00 Debt Service Reserve Fund 918,406.25 2,421,406.25 Cost of Issuance: Other Cost of Issuance 300,000.00 Delivery Date Expenses: Underwriter's Discount 200,400.00 10,020,000.00 8 a Packet Pg. 355 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:06 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-20NRSPC) BOND SUMMARY STATISTICS NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION BONDS, SERIES 2020 40.000 (target) Mills Non-Rated, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Dated Date 12/01/2020 Delivery Date 12/01/2020 First Coupon 06/01/2021 Last Maturity 12/01/2050 Arbitrage Yield 5.000000% True Interest Cost (TIC) 5.148899% Net Interest Cost (NIC) 5.000000% All-In TIC 5.380240% Average Coupon 5.000000% Average Life (years) 23.996 Weighted Average Maturity (years) 23.996 Duration of Issue (years) 13.855 Par Amount 10,020,000.00 Bond Proceeds 10,020,000.00 Total Interest 12,021,750.00 Net Interest 12,222,150.00 Bond Years from Dated Date 240,435,000.00 Bond Years from Delivery Date 240,435,000.00 Total Debt Service 22,041,750.00 Maximum Annual Debt Service 1,968,750.00 Average Annual Debt Service 734,725.00 Underwriter's Fees (per $1000) Average Takedown Other Fee 20.000000 Total Underwriter's Discount 20.000000 Bid Price 98.000000 Average Par Average Average Maturity PV of 1 bp Bond Component Value Price Coupon Life Date change Term Bond due 2050 10,020,000.00 100.000 5.000% 23.996 11/29/2044 15,531.00 10,020,000.00 23.996 15,531.00 All-In Arbitrage TIC TIC Yield Par Value 10,020,000.00 10,020,000.00 10,020,000.00 + Accrued Interest + Premium (Discount) - Underwriter's Discount -200,400.00 -200,400.00 - Cost of Issuance Expense -300,000.00 - Other Amounts Target Value 9,819,600.00 9,519,600.00 10,020,000.00 Target Date 12/01/2020 12/01/2020 12/01/2020 Yield 5.148899% 5.380240% 5.000000% 9 a Packet Pg. 356 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:06 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-20NRSPC) BOND DEBT SERVICE NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION BONDS, SERIES 2020 40.000 (target) Mills Non-Rated, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Annual Period Debt Debt Ending Principal Coupon Interest Service Service 06/01/2021 250,500 250,500 12/01/2021 250,500 250,500 501,000 06/01/2022 250,500 250,500 12/01/2022 250,500 250,500 501,000 06/01/2023 250,500 250,500 12/01/2023 250,500 250,500 501,000 06/01/2024 250,500 250,500 12/01/2024 250,500 250,500 501,000 06/01/2025 250,500 250,500 12/01/2025 250,500 250,500 501,000 06/01/2026 250,500 250,500 12/01/2026 15,000 5.000% 250,500 265,500 516,000 06/01/2027 250,125 250,125 12/01/2027 20,000 5.000% 250,125 270,125 520,250 06/01/2028 249,625 249,625 12/01/2028 50,000 5.000% 249,625 299,625 549,250 06/01/2029 248,375 248,375 12/01/2029 55,000 5.000% 248,375 303,375 551,750 06/01/2030 247,000 247,000 12/01/2030 90,000 5.000% 247,000 337,000 584,000 06/01/2031 244,750 244,750 12/01/2031 95,000 5.000% 244,750 339,750 584,500 06/01/2032 242,375 242,375 12/01/2032 135,000 5.000% 242,375 377,375 619,750 06/01/2033 239,000 239,000 12/01/2033 140,000 5.000% 239,000 379,000 618,000 06/01/2034 235,500 235,500 12/01/2034 185,000 5.000% 235,500 420,500 656,000 06/01/2035 230,875 230,875 12/01/2035 195,000 5.000% 230,875 425,875 656,750 06/01/2036 226,000 226,000 12/01/2036 245,000 5.000% 226,000 471,000 697,000 06/01/2037 219,875 219,875 12/01/2037 255,000 5.000% 219,875 474,875 694,750 06/01/2038 213,500 213,500 12/01/2038 310,000 5.000% 213,500 523,500 737,000 06/01/2039 205,750 205,750 12/01/2039 325,000 5.000% 205,750 530,750 736,500 06/01/2040 197,625 197,625 12/01/2040 390,000 5.000% 197,625 587,625 785,250 06/01/2041 187,875 187,875 12/01/2041 410,000 5.000% 187,875 597,875 785,750 06/01/2042 177,625 177,625 12/01/2042 475,000 5.000% 177,625 652,625 830,250 06/01/2043 165,750 165,750 12/01/2043 500,000 5.000% 165,750 665,750 831,500 06/01/2044 153,250 153,250 12/01/2044 575,000 5.000% 153,250 728,250 881,500 06/01/2045 138,875 138,875 Apr 25, 2019 11:06 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-20NRSPC) NET DEBT SERVICE NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION BONDS, SERIES 2020 40.000 (target) Mills Non-Rated, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Capitalized Period Total Debt Service Interest Net Ending Principal Interest Debt Service Reserve Fund Fund Debt Service 12/01/2021 501,000 501,000 501,000 12/01/2022 501,000 501,000 501,000 12/01/2023 501,000 501,000 501,000 12/01/2024 501,000 501,000 501,000.00 12/01/2025 501,000 501,000 501,000.00 12/01/2026 15,000 501,000 516,000 516,000.00 12/01/2027 20,000 500,250 520,250 520,250.00 12/01/2028 50,000 499,250 549,250 549,250.00 12/01/2029 55,000 496,750 551,750 551,750.00 12/01/2030 90,000 494,000 584,000 584,000.00 12/01/2031 95,000 489,500 584,500 584,500.00 12/01/2032 135,000 484,750 619,750 619,750.00 12/01/2033 140,000 478,000 618,000 618,000.00 12/01/2034 185,000 471,000 656,000 656,000.00 12/01/2035 195,000 461,750 656,750 656,750.00 12/01/2036 245,000 452,000 697,000 697,000.00 12/01/2037 255,000 439,750 694,750 694,750.00 12/01/2038 310,000 427,000 737,000 737,000.00 12/01/2039 325,000 411,500 736,500 736,500.00 12/01/2040 390,000 395,250 785,250 785,250.00 12/01/2041 410,000 375,750 785,750 785,750.00 12/01/2042 475,000 355,250 830,250 830,250.00 12/01/2043 500,000 331,500 831,500 831,500.00 12/01/2044 575,000 306,500 881,500 881,500.00 12/01/2045 605,000 277,750 882,750 882,750.00 12/01/2046 685,000 247,500 932,500 932,500.00 12/01/2047 720,000 213,250 933,250 933,250.00 12/01/2048 815,000 177,250 992,250 992,250.00 12/01/2049 855,000 136,500 991,500 991,500.00 12/01/2050 1,875,000 93,750 1,968,750 918,406.25 1,050,343.75 10,020,000 12,021,750 22,041,750 918,406.25 1,503,000 19,620,343.75 11 a Packet Pg. 358 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:06 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-20NRSPC) BOND SOLUTION NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION BONDS, SERIES 2020 40.000 (target) Mills Non-Rated, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Period Proposed Proposed Debt Service Total Adj Revenue Unused Debt Serv Ending Principal Debt Service Adjustments Debt Service Constraints Revenues Coverage 12/01/2021 501,000 -501,000 12,900 12,900 12/01/2022 501,000 -501,000 90,570 90,570 12/01/2023 501,000 -501,000 228,878 228,878 12/01/2024 501,000 501,000 361,802 -139,198 72.21605% 12/01/2025 501,000 501,000 450,046 -50,954 89.82959% 12/01/2026 15,000 516,000 516,000 518,186 2,186 100.42371% 12/01/2027 20,000 520,250 520,250 522,706 2,456 100.47212% 12/01/2028 50,000 549,250 549,250 554,069 4,819 100.87730% 12/01/2029 55,000 551,750 551,750 554,069 2,319 100.42022% 12/01/2030 90,000 584,000 584,000 587,313 3,313 100.56724% 12/01/2031 95,000 584,500 584,500 587,313 2,813 100.48121% 12/01/2032 135,000 619,750 619,750 622,551 2,801 100.45203% 12/01/2033 140,000 618,000 618,000 622,551 4,551 100.73648% 12/01/2034 185,000 656,000 656,000 659,905 3,905 100.59521% 12/01/2035 195,000 656,750 656,750 659,905 3,155 100.48033% 12/01/2036 245,000 697,000 697,000 699,499 2,499 100.35851% 12/01/2037 255,000 694,750 694,750 699,499 4,749 100.68353% 12/01/2038 310,000 737,000 737,000 741,469 4,469 100.60634% 12/01/2039 325,000 736,500 736,500 741,469 4,969 100.67464% 12/01/2040 390,000 785,250 785,250 785,957 707 100.09002% 12/01/2041 410,000 785,750 785,750 785,957 207 100.02633% 12/01/2042 475,000 830,250 830,250 833,114 2,864 100.34499% 12/01/2043 500,000 831,500 831,500 833,114 1,614 100.19414% 12/01/2044 575,000 881,500 881,500 883,101 1,601 100.18164% 12/01/2045 605,000 882,750 882,750 883,101 351 100.03978% 12/01/2046 685,000 932,500 932,500 936,087 3,587 100.38469% 12/01/2047 720,000 933,250 933,250 936,087 2,837 100.30401% 12/01/2048 815,000 992,250 992,250 992,252 2 100.00025% 12/01/2049 855,000 991,500 991,500 992,252 752 100.07589% 12/01/2050 1,875,000 1,968,750 -918,406 1,050,344 1,051,788 1,444 100.13746% 10,020,000 22,041,750 -2,421,406 19,620,344 19,827,510 207,167 12 a Packet Pg. 359 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) SOURCES AND USES OF FUNDS NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Dated Date 12/01/2030 Delivery Date 12/01/2030 Sources: Bond Proceeds: Par Amount 14,870,000.00 Other Sources of Funds: Funds on Hand* 155,000.00 Series 2020 - DSRF 918,406.00 1,073,406.00 15,943,406.00 Uses: Project Fund Deposits: Project Fund 5,829,489.33 Refunding Escrow Deposits: Cash Deposit* 9,790,000.00 Other Fund Deposits: Capitalized Interest Fund 49,566.67 Cost of Issuance: Other Cost of Issuance 200,000.00 Delivery Date Expenses: Underwriter's Discount 74,350.00 15,943,406.00 [*] Estimated balances, (tbd). 13 a Packet Pg. 360 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) BOND SUMMARY STATISTICS NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Dated Date 12/01/2030 Delivery Date 12/01/2030 First Coupon 06/01/2031 Last Maturity 12/01/2060 Arbitrage Yield 4.000000% True Interest Cost (TIC) 4.035170% Net Interest Cost (NIC) 4.000000% All-In TIC 4.131013% Average Coupon 4.000000% Average Life (years) 22.217 Weighted Average Maturity (years) 22.217 Duration of Issue (years) 14.526 Par Amount 14,870,000.00 Bond Proceeds 14,870,000.00 Total Interest 13,214,800.00 Net Interest 13,289,150.00 Bond Years from Dated Date 330,370,000.00 Bond Years from Delivery Date 330,370,000.00 Total Debt Service 28,084,800.00 Maximum Annual Debt Service 1,404,000.00 Average Annual Debt Service 936,160.00 Underwriter's Fees (per $1000) Average Takedown Other Fee 5.000000 Total Underwriter's Discount 5.000000 Bid Price 99.500000 Average Par Average Average Maturity PV of 1 bp Bond Component Value Price Coupon Life Date change Term Bond due 2060 14,870,000.00 100.000 4.000% 22.217 02/17/2053 25,873.80 14,870,000.00 22.217 25,873.80 All-In Arbitrage TIC TIC Yield Par Value 14,870,000.00 14,870,000.00 14,870,000.00 + Accrued Interest + Premium (Discount) - Underwriter's Discount -74,350.00 -74,350.00 - Cost of Issuance Expense -200,000.00 - Other Amounts Target Value 14,795,650.00 14,595,650.00 14,870,000.00 Target Date 12/01/2030 12/01/2030 12/01/2030 Yield 4.035170% 4.131013% 4.000000% 14 a Packet Pg. 361 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) BOND DEBT SERVICE NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Annual Period Debt Debt Ending Principal Coupon Interest Service Service 06/01/2031 297,400 297,400 12/01/2031 297,400 297,400 594,800 06/01/2032 297,400 297,400 12/01/2032 25,000 4.000% 297,400 322,400 619,800 06/01/2033 296,900 296,900 12/01/2033 25,000 4.000% 296,900 321,900 618,800 06/01/2034 296,400 296,400 12/01/2034 65,000 4.000% 296,400 361,400 657,800 06/01/2035 295,100 295,100 12/01/2035 65,000 4.000% 295,100 360,100 655,200 06/01/2036 293,800 293,800 12/01/2036 110,000 4.000% 293,800 403,800 697,600 06/01/2037 291,600 291,600 12/01/2037 115,000 4.000% 291,600 406,600 698,200 06/01/2038 289,300 289,300 12/01/2038 160,000 4.000% 289,300 449,300 738,600 06/01/2039 286,100 286,100 12/01/2039 165,000 4.000% 286,100 451,100 737,200 06/01/2040 282,800 282,800 12/01/2040 220,000 4.000% 282,800 502,800 785,600 06/01/2041 278,400 278,400 12/01/2041 225,000 4.000% 278,400 503,400 781,800 06/01/2042 273,900 273,900 12/01/2042 285,000 4.000% 273,900 558,900 832,800 06/01/2043 268,200 268,200 12/01/2043 295,000 4.000% 268,200 563,200 831,400 06/01/2044 262,300 262,300 12/01/2044 355,000 4.000% 262,300 617,300 879,600 06/01/2045 255,200 255,200 12/01/2045 370,000 4.000% 255,200 625,200 880,400 06/01/2046 247,800 247,800 12/01/2046 440,000 4.000% 247,800 687,800 935,600 06/01/2047 239,000 239,000 12/01/2047 455,000 4.000% 239,000 694,000 933,000 06/01/2048 229,900 229,900 12/01/2048 530,000 4.000% 229,900 759,900 989,800 06/01/2049 219,300 219,300 12/01/2049 550,000 4.000% 219,300 769,300 988,600 06/01/2050 208,300 208,300 12/01/2050 630,000 4.000% 208,300 838,300 1,046,600 06/01/2051 195,700 195,700 12/01/2051 660,000 4.000% 195,700 855,700 1,051,400 06/01/2052 182,500 182,500 12/01/2052 745,000 4.000% 182,500 927,500 1,110,000 06/01/2053 167,600 167,600 12/01/2053 775,000 4.000% 167,600 942,600 1,110,200 06/01/2054 152,100 152,100 12/01/2054 875,000 4.000% 152,100 1,027,100 1,179,200 Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) NET DEBT SERVICE NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Period Total Capitalized Net Ending Principal Interest Debt Service Interest Fund Debt Service 12/01/2031 594,800 594,800 49,566.67 545,233.33 12/01/2032 25,000 594,800 619,800 619,800.00 12/01/2033 25,000 593,800 618,800 618,800.00 12/01/2034 65,000 592,800 657,800 657,800.00 12/01/2035 65,000 590,200 655,200 655,200.00 12/01/2036 110,000 587,600 697,600 697,600.00 12/01/2037 115,000 583,200 698,200 698,200.00 12/01/2038 160,000 578,600 738,600 738,600.00 12/01/2039 165,000 572,200 737,200 737,200.00 12/01/2040 220,000 565,600 785,600 785,600.00 12/01/2041 225,000 556,800 781,800 781,800.00 12/01/2042 285,000 547,800 832,800 832,800.00 12/01/2043 295,000 536,400 831,400 831,400.00 12/01/2044 355,000 524,600 879,600 879,600.00 12/01/2045 370,000 510,400 880,400 880,400.00 12/01/2046 440,000 495,600 935,600 935,600.00 12/01/2047 455,000 478,000 933,000 933,000.00 12/01/2048 530,000 459,800 989,800 989,800.00 12/01/2049 550,000 438,600 988,600 988,600.00 12/01/2050 630,000 416,600 1,046,600 1,046,600.00 12/01/2051 660,000 391,400 1,051,400 1,051,400.00 12/01/2052 745,000 365,000 1,110,000 1,110,000.00 12/01/2053 775,000 335,200 1,110,200 1,110,200.00 12/01/2054 875,000 304,200 1,179,200 1,179,200.00 12/01/2055 910,000 269,200 1,179,200 1,179,200.00 12/01/2056 1,015,000 232,800 1,247,800 1,247,800.00 12/01/2057 1,060,000 192,200 1,252,200 1,252,200.00 12/01/2058 1,175,000 149,800 1,324,800 1,324,800.00 12/01/2059 1,220,000 102,800 1,322,800 1,322,800.00 12/01/2060 1,350,000 54,000 1,404,000 1,404,000.00 14,870,000 13,214,800 28,084,800 49,566.67 28,035,233.33 16 a Packet Pg. 363 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) SUMMARY OF BONDS REFUNDED NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Maturity Interest Par Call Call Bond Date Rate Amount Date Price 4/25/19: Ser 20 NR SP, 5.00%, 100x, 40mls, FG+6% BiRe: TERM50 12/01/2031 5.000% 95,000.00 12/01/2030 100.000 12/01/2032 5.000% 135,000.00 12/01/2030 100.000 12/01/2033 5.000% 140,000.00 12/01/2030 100.000 12/01/2034 5.000% 185,000.00 12/01/2030 100.000 12/01/2035 5.000% 195,000.00 12/01/2030 100.000 12/01/2036 5.000% 245,000.00 12/01/2030 100.000 12/01/2037 5.000% 255,000.00 12/01/2030 100.000 12/01/2038 5.000% 310,000.00 12/01/2030 100.000 12/01/2039 5.000% 325,000.00 12/01/2030 100.000 12/01/2040 5.000% 390,000.00 12/01/2030 100.000 12/01/2041 5.000% 410,000.00 12/01/2030 100.000 12/01/2042 5.000% 475,000.00 12/01/2030 100.000 12/01/2043 5.000% 500,000.00 12/01/2030 100.000 12/01/2044 5.000% 575,000.00 12/01/2030 100.000 12/01/2045 5.000% 605,000.00 12/01/2030 100.000 12/01/2046 5.000% 685,000.00 12/01/2030 100.000 12/01/2047 5.000% 720,000.00 12/01/2030 100.000 12/01/2048 5.000% 815,000.00 12/01/2030 100.000 12/01/2049 5.000% 855,000.00 12/01/2030 100.000 12/01/2050 5.000% 1,875,000.00 12/01/2030 100.000 9,790,000.00 17 a Packet Pg. 364 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) ESCROW REQUIREMENTS NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Dated Date 12/01/2030 Delivery Date 12/01/2030 4/25/19: Ser 20 NR SP, 5.00%, 100x, 40mls, FG+6% BiRe Period Principal Ending Redeemed Total 12/01/2030 9,790,000.00 9,790,000.00 9,790,000.00 9,790,000.00 18 a Packet Pg. 365 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) PRIOR BOND DEBT SERVICE NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Annual Period Debt Debt Ending Principal Coupon Interest Service Service 06/01/2031 244,750 244,750 12/01/2031 95,000 5.000% 244,750 339,750 584,500 06/01/2032 242,375 242,375 12/01/2032 135,000 5.000% 242,375 377,375 619,750 06/01/2033 239,000 239,000 12/01/2033 140,000 5.000% 239,000 379,000 618,000 06/01/2034 235,500 235,500 12/01/2034 185,000 5.000% 235,500 420,500 656,000 06/01/2035 230,875 230,875 12/01/2035 195,000 5.000% 230,875 425,875 656,750 06/01/2036 226,000 226,000 12/01/2036 245,000 5.000% 226,000 471,000 697,000 06/01/2037 219,875 219,875 12/01/2037 255,000 5.000% 219,875 474,875 694,750 06/01/2038 213,500 213,500 12/01/2038 310,000 5.000% 213,500 523,500 737,000 06/01/2039 205,750 205,750 12/01/2039 325,000 5.000% 205,750 530,750 736,500 06/01/2040 197,625 197,625 12/01/2040 390,000 5.000% 197,625 587,625 785,250 06/01/2041 187,875 187,875 12/01/2041 410,000 5.000% 187,875 597,875 785,750 06/01/2042 177,625 177,625 12/01/2042 475,000 5.000% 177,625 652,625 830,250 06/01/2043 165,750 165,750 12/01/2043 500,000 5.000% 165,750 665,750 831,500 06/01/2044 153,250 153,250 12/01/2044 575,000 5.000% 153,250 728,250 881,500 06/01/2045 138,875 138,875 12/01/2045 605,000 5.000% 138,875 743,875 882,750 06/01/2046 123,750 123,750 12/01/2046 685,000 5.000% 123,750 808,750 932,500 06/01/2047 106,625 106,625 12/01/2047 720,000 5.000% 106,625 826,625 933,250 06/01/2048 88,625 88,625 12/01/2048 815,000 5.000% 88,625 903,625 992,250 06/01/2049 68,250 68,250 12/01/2049 855,000 5.000% 68,250 923,250 991,500 06/01/2050 46,875 46,875 12/01/2050 1,875,000 5.000% 46,875 1,921,875 1,968,750 9,790,000 7,025,500 16,815,500 16,815,500 19 a Packet Pg. 366 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Apr 25, 2019 11:11 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Northfield MD 18:CAPR2519-30IGSPC,30IGSPC) BOND SOLUTION NORTHFIELD METROPOLITAN DISTRICT GENERAL OBLIGATION REFUNDING BONDS, SERIES 2030 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 40.000 (target) Mills Assumes Investment Grade, 100x, 30-yr. Maturity (SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discussion only ] Period Proposed Proposed Debt Service Total Adj Revenue Unused Debt Serv Ending Principal Debt Service Adjustments Debt Service Constraints Revenues Coverage 12/01/2031 594,800 -49,567 545,233 587,313 42,079 107.71768% 12/01/2032 25,000 619,800 619,800 622,551 2,751 100.44393% 12/01/2033 25,000 618,800 618,800 622,551 3,751 100.60625% 12/01/2034 65,000 657,800 657,800 659,905 2,105 100.31994% 12/01/2035 65,000 655,200 655,200 659,905 4,705 100.71803% 12/01/2036 110,000 697,600 697,600 699,499 1,899 100.27219% 12/01/2037 115,000 698,200 698,200 699,499 1,299 100.18602% 12/01/2038 160,000 738,600 738,600 741,469 2,869 100.38840% 12/01/2039 165,000 737,200 737,200 741,469 4,269 100.57905% 12/01/2040 220,000 785,600 785,600 785,957 357 100.04543% 12/01/2041 225,000 781,800 781,800 785,957 4,157 100.53171% 12/01/2042 285,000 832,800 832,800 833,114 314 100.03774% 12/01/2043 295,000 831,400 831,400 833,114 1,714 100.20619% 12/01/2044 355,000 879,600 879,600 883,101 3,501 100.39804% 12/01/2045 370,000 880,400 880,400 883,101 2,701 100.30681% 12/01/2046 440,000 935,600 935,600 936,087 487 100.05207% 12/01/2047 455,000 933,000 933,000 936,087 3,087 100.33089% 12/01/2048 530,000 989,800 989,800 992,252 2,452 100.24777% 12/01/2049 550,000 988,600 988,600 992,252 3,652 100.36946% 12/01/2050 630,000 1,046,600 1,046,600 1,051,788 5,188 100.49566% 12/01/2051 660,000 1,051,400 1,051,400 1,051,788 388 100.03686% 12/01/2052 745,000 1,110,000 1,110,000 1,114,895 4,895 100.44098% 12/01/2053 775,000 1,110,200 1,110,200 1,114,895 4,695 100.42288% 12/01/2054 875,000 1,179,200 1,179,200 1,181,789 2,589 100.21952% 12/01/2055 910,000 1,179,200 1,179,200 1,181,789 2,589 100.21952% 12/01/2056 1,015,000 1,247,800 1,247,800 1,252,696 4,896 100.39236% 12/01/2057 1,060,000 1,252,200 1,252,200 1,252,696 496 100.03960% 12/01/2058 1,175,000 1,324,800 1,324,800 1,327,858 3,058 100.23080% 12/01/2059 1,220,000 1,322,800 1,322,800 1,327,858 5,058 100.38234% 12/01/2060 1,350,000 1,404,000 1,404,000 1,407,529 3,529 100.25136% 14,870,000 28,084,800 -49,567 28,035,233 28,160,762 125,528 20 a Packet Pg. 367 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) G-1 EXHIBIT G PUBLIC BENEFITS a Packet Pg. 368 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) NORTHFIELD METROPOLITAN DISTRICT NOS. 1-3 PUBLIC BENEFITS NARRATIVE The City of Fort Collins (the “City”) and surrounding Larimer County face a significant affordable and attainable housing shortage. Situated on one of the last undeveloped parcels of land within walking distance of Old Town Fort Collins, Northfield Metropolitan District Nos. 1-3 (“Northfield”) will create an affordable and attainable neighborhood woven into the fabric of central Fort Collins and advancing the City’s vision for the future. The Metropolitan District structure will provide the financing mechanisms that make attaining the City’s stretch outcomes and development objectives possible. Metropolitan District financing would mitigate increased front-end costs of modern development, meaning increased costs are not passed directly to residents at the point of sale, and thus keeping housing unit prices in the affordable and attainable range. Northfield will deliver on these City objectives: Affordable and Attainable Housing; Environmental Sustainability; Critical Public Infrastructure; and Smart Growth Management. 1. Affordable and Attainable Housing The shortage of affordable and attainable housing in Fort Collins is one of the City’s most pressing concerns. Annual housing starts in Fort Collins priced under $400,000 have dropped 45% in the past year. Northfield plans to create housing for the community at prices that are well below average for the area. The Metropolitan District structure is a critical tool for facilitating the a Packet Pg. 369 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 2 delivery of attainable and affordable housing considering Northfield’s proximity to downtown Fort Collins and higher-than-average land and development costs in this area. Northfield plans to offer 65 units or approximately 15% of the total project as affordable housing units at 80% AMI or lower. These units would be delivered with legally enforceable guarantees for affordable housing commitments, such as deed restrictions for a minimum of 20 years. As of the submittal of this service plan, Landmark has a signed LOI with Mercy Housing, a very well established affordable, for-rent multifamily builder that has projects around the nation. Although non-binding, this LOI poses a great way that Landmark can deliver on its promise of affordable homes with the approval of a Metro District. A copy of the LOI has been included as an exhibit below. If the affordable housing units are offered as for-rent units, such units will be rented at a price affordable in Larimer County, Colorado, for an AMI of 80% or lower and the average of all rents for those units will at all times reasonably approximate to a Larimer County AMI of 60% or lower. Additionally, the remaining housing units in the project are expected to be priced in an attainable range, considered by other cities to be between 80% and 120% of AMI. Proximity to Employment Centers (Employee Counts Shown on Map) Affordable and attainable housing in Northfield’s central location would provide an extraordinary benefit to the City and its residents. Northfield is located within walking and/or biking distance to some of the largest employment hubs in the City, including City of Fort Collins Municipal Offices, Colorado State University, Woodward, and New Belgium Brewing. a Packet Pg. 370 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 3 Northfield's proximity to these hubs and its affordable and attainable price points set the project apart from other recent residential developments in Fort Collins. Through Northfield, the City will gain high-quality, attainable housing near the City’s economic and cultural core, helping reduce congestion in the City and provide workforce housing. 2. Environmental Sustainability (a) Energy Conservation The Metro District structure will enable the construction of more energy efficient homes. Northfield will commit every home to meeting LEED Gold certification, including the affordable units. LEED measures nine key areas that ensure the entire community, beyond just the individual homes, are meeting and exceeding green materials and practices. These nines areas are sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, location and linkages, awareness and education, innovation in design, and regional priority. Northfield has engaged the environmental group The Green Insight to help achieve this certification and will be responsible for the inspections throughout the building process to ensure Northfield receives the LEED Gold certifications. a Packet Pg. 371 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 4 All floorplans for the market rate home have gone through HERS analysis to determine their energy efficiency. The results are very efficient ratings ranging from 35 to 49. Increased energy efficient building materials and methods were considered to increase the energy efficiency of the homes as well as the use of approximately 1kW of solar power for every unit. According to the HERS index, these homes in Northfield will be 51-65% more energy efficient than a standard new home and 81-95% more efficient than the average resale home. The HERS ratings are incorporated into the LEED scores and are part of the entire LEED Gold certification and standard. The HERS ratings for each product type are as follows: The City does not currently require the project to include solar power capability or charging stations for electric vehicles. Northfield plans to include solar panels on every unit. These buildings will feature a photovoltaic system that will produce approximately 1kW of power for each unit (3 panels per home at +/- 330 watts per panel). Thus, a 12-unit building will have roughly 12kW of solar panels. Energy recovery ventilator (ERV) systems will also be installed on every market rate unit to improve air quality inside the homes. When homes get very tight due to efficient a Packet Pg. 372 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 5 construction techniques, the air inside can get stagnant. The ERV system helps bring in fresh outside air and condition it to the inside temperature through an energy efficient recovery core. Northfield will also deliver a 240V outlet in every garage to provide a place for the electric vehicle fast-charging stations and further encourage residents to drive eco-friendly cars. In addition to the outlets, Northfield will provide electrical vehicle charging stations at parking locations throughout the project, which will be available to residents and the greater community. These charging stations and electrical outlets demonstrate that Northfield is an environmentally friendly community and encourages the use of electric vehicles to help reduce greenhouse gas emissions. (b) Environmental Conservation Bordering the Lake Canal Wetlands, Northfield’s design protects and enhances this important ecosystem. The project provides an enhanced setback from the Lake Canal Wetlands to further protect them from new development. The connections over Lake Canal will be constructed with low impact box culverts and abide by and exceed Army Core of Engineers standards for historic protected wetlands. Northfield will include approximately 26 acres of parks and green spaces, covering approximately 46.9% of the entire project and far exceeding the City’s requirements for open space. These landscaped areas will focus on low-water usage designs. Initial hydro-zone calculations indicate Northfield will use 6.87 gallons of water per square foot, well below the City’s limit of 15 gallons of water per square foot. (c) Enhanced Community Resiliency Northfield is located within the City’s Northside Neighborhoods Plan area. One of the City’s goals under that plan is improving stormwater drainage for the Dry Creek and Poudre River Basins to remove lands from the floodplain. The property within Northfield has a high water table and, through the use of the Metropolitan District structure and financing tools, the site would be de-watered using a perforated underdrain system, which will facilitate the City’s goal of improving stormwater drainage in the Dry Creek and Poudre River Basins. More specifically, Northfield anticipates implementing infiltration galleries and utilizing both below grade StormTech chambers and a rain garden to enhance stormwater runoff quantity and quality. These features are in addition to the City’s standard stormwater detention requirements and water quality capture volumes. The infiltration galleries and rain garden are Low-Impact Development (LID) features that allow sediment to be filtered out while providing infiltration to protect the environment and reduce the volume of developed runoff. These measures, combined with the de-watering efforts, will make Northfield and the surrounding neighborhoods less susceptible to future flooding. 3. Critical Public Infrastructure (a) Construction of Suniga Road as an Arterial Road a Packet Pg. 373 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 6 Under the City’s building and zoning rules, a standard project does not require regional road access bisecting the site. However, Northfield is willing to fulfill the City’s request that the project include a 4-lane arterial road in order to improve the access to the entire northeast region of the City. This regional connection will run from Redwood Street to Lemay Avenue, connecting to the existing portion of Suniga Road to the west of the project. The Metropolitan District financing tools will help enable the construction of Suniga Road as an arterial road for the City, which is a much more significant regional transportation contribution than is typically delivered by projects of Northfield’s size. The Metropolitan District structure and finance tools facilitate delivery of this stretch outcome by offsetting the costs and loss of developable space that Northfield faces by dedicating increased right-of-way to the arterial road. See images below for cross-section comparisons of the ROW required for an Arterial Street vs a Connector Local Street. The community gains a vital piece of regional connectivity that alleviates many traffic concerns in the area, particularly at the intersection of Vine & Lemay, in the North College/Vine Drive Enhanced Travel Corridor. a Packet Pg. 374 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 7 (b) Off-Site Sewer Improvements Through the Metropolitan District structure, Northfield is able to advance funds to improve a dilapidated off-site sewer line at the onset of the project and provide improved sewer service to Northfield and surrounding neighborhoods when the improvements are needed, allowing the City to reimburse a portion of those expenditures at a future date. Northfield plans to replace and upsize the sewer line from Vine Drive, around Alta Vista, and along a portion of Lemay Avenue. This amounts to 2,694 linear feet of sewer line. Given the City's capital improvements schedule, it is unlikely that that a City-constructed line upsizing project at this location could be completed until long after Northfield is built. Northfield and the Metropolitan District structure would make it possible to finance and replace the failing sewer line during horizontal construction, providing immediate public benefit to the community. a Packet Pg. 375 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 8 (c) Regional Trail Rather than simply designating an on-site easement for the future trail construction by the City, Northfield plans to finance and deliver the on-site Regional Trail as well as the off- site pedestrian connection for the northeastern portion up to the intersection at Lemay Avenue and Conifer Street. The site will also feature buffered bike lanes and wider than required sidewalks. Given Northfield’s proximity to many employment centers, as well as downtown Fort Collins, the immediate construction of the Regional Trail will give our residents and the surrounding community enhanced pedestrian access, thus reducing the need for automobile trips. The Metropolitan District Structure enables the Regional Trail to be built concurrently with vertical construction and frees the City to allocate funds that would have been used to construct the trail to other valuable projects. a Packet Pg. 376 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 9 4. Smart Growth Management and Community and Neighborhood Livability Northfield furthers the City’s objectives for Smart Growth Management and Community and neighborhood Livability. Although Northfield will meet the City’s definition of an “affordable housing project,” which would allow for increased density to 12 units per acre, Northfield plans to keep density at 8 units per acre. Remaining at this lower density enables Northfield’s other stretch outcomes, including constructing Suniga Road as an arterial road and increasing the buffer zone to protect the Lake Canal Wetlands. Lower project-wide density also provides Northfield’s residents and the surrounding community with a more attractive residential area, including more landscaped and open space area than similarly sized projects. Current area coverage calculations put the amount of landscaped and open space at 25.9 acres, or 46.9% of the entire site. This is a much higher proportion of open space compared to similar residential projects, and especially compared to single-family developments. Northfield’s density is also the lowest of any recent project with similar product types that Landmark Homes has developed in Northern Colorado (See table below). The amount of outdoor space greatly increases the amount of landscaping required, creating a development challenge because pro forma revenue is lost due to both lost units and increased landscaping costs. Metropolitan District financing tools help mitigate this challenge and enable the delivery of enhanced livability and a desirable, defining new urbanist community near Downtown Fort Collins. The Metropolitan District structure is also a more efficient vehicle for maintaining the landscaping and open space than a common interest ownership association. The project will focus on alley-loaded units, which is a major tenant of New Urbanism planning values and techniques. Residents not situated on right-of-ways will face landscaped open space as well. Alley-loaded product results in a far superior aesthetic benefit to its residents than in a code-minimum project, but there are increased costs associated with this design, and the proposed structure will help fill that funding gap. The Metropolitan District structure is also a much more efficient vehicle to maintain these alleys than a common interest ownership association would be. a Packet Pg. 377 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 10 Northfield will also feature a clubhouse and a mixed-use building near the regional trail to serve the community at large. The clubhouse will provide amenities including a swimming pool, workout facility, kitchen, and gathering space for residents and public. The mixed-use center will offer light commercial use on the first floor, residential for-rent units on the second floor, and small amenities open to the public (e.g. bike repair station, doggie station). Targeted uses for the commercial space include a day care center, coffee shop, and bike repair shop. Neither amenity is required by the City, and both are categorized as extraordinary costs that the development is incurring for the benefit of the residents of Northfield and the community at large. See renderings of the clubhouse and the mixed-use building below. a Packet Pg. 378 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 11 Northfield will also promote the City’s objective of preserving and enhancing historic resources. The southeastern edge of Northfield borders the to-be-designated historic Alta Vista neighborhood. To blend the transition to new development and pay homage to the neighborhood’s history, Northfield will feature an Interpretive Historical Park and Gateway Features bordering Alta Vista. These additions were developed in collaboration with neighbors in the Alta Vista neighborhood and would provide an extraordinary benefit to the City as a whole. a Packet Pg. 379 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 12 PUBLIC BENEFITS NARRATIVE Exhibit 1: Mercy Housing LOI a Packet Pg. 380 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 12 PUBLIC BENEFITS NARRATIVE Exhibit 1: Mercy Housing LOI a Packet Pg. 381 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) a Packet Pg. 382 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) a Packet Pg. 383 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) a Packet Pg. 384 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) a Packet Pg. 385 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Total Benefit Per-Unit Benefit Notes Environmental Sustainability Energy Efficient Neighborhood 1) LEED Gold Certification $1,933,750 $4,375 Energy efficient building materials/practices and certification fees 2) Energy Recovery Ventilator (ERV) Systems $645,000 $1,459 In every market rate home; meets ASHRAE 62.2 & FC Code Solar Energy 1) Appoximately 1 kW of Solar Per Unit $1,219,310 $2,759 On every home (3 panels per home at +/- 330 watts per panel) Electric Vehicles 1) 240V wiring and outlets $375,000 $848 In every garage 2) EV charging stations $30,000 $68 6 dual charging ports Critical Public Infrastructure Major Arterial Development 1) On-Site Suniga Road Upsizing $1,682,640 $3,807 Upsizing cost from a typical 2-lane connector 1) Off-Site Suniga Road $774,800 $1,753 Offsite construction from Redwood to Lake Canal Pedestrian Connectivity 1) Regional Trail Construction $199,050 $450 Off-Site Infrastructure 1) Off-Site Sewer Construction & Upsizing $538,220 $1,218 To benefit Northfield and the surrounding areas from a failing sewer line Smart Growth Management Increased Density 1) Alley-Loaded Homes $820,800 $1,857 Metro District maintained Public Spaces 1) Reduction in Allowed Density/ More Open Space $4,474,100 $10,122 Northfield is at 8 units/acre vs the allowed 12 units/acre per the "affordable housing project" land use definition 2) Clubhouse & Swimming Pool $2,000,000 $4,525 3) Increased Landscaped Area (46.9% of site) $723,800 $1,638 Landscaped area beyond a typical project 4) Alta Vista Buffer Area $125,000 $283 Seperates and protects the Alta Vista neighborhood from Suniga 5) Public amenity area $5,000 $11 Public use amenities stationed along regional trail Strategic Priorities Affordable Housing 1) 14.7% (65 units) of deed-restricted affordable housing $4,420,000 $10,000 $68,000 subsidy per unit to price below 80% AMI Attainable Housing 1) 85.3% (377 units) of attainably priced housing Difficult to Quant. Difficult to Quan. Remainder of project will be priced in a range that someone making 80% to 120% of AMI could afford TOTAL PUBLIC BENEFITS $19,966,470 $45,173 Units: 442 Non-Basic Improvements Disclaimer: The benefits listed above respresent a preliminary estimate in order to provide illustrative representation of the value for public benefit. The illustration is non-binding pending the execution of a development agreement Northfield Metro District Public Benefits Evaluation a Packet Pg. 386 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) H-1 EXHIBIT H DISCLOSURE NOTICE a Packet Pg. 387 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso)  NOTICE OF INCLUSION IN A RESIDENTIAL METROPOLITAN DISTRICT AND POSSIBLE PROPERTY TAX CONSEQUENCES Legal description of the property and address: Attached hereto as Exhibit A. This property is located in the following metropolitan district: Northfield Metropolitan District No. __. In addition to standard property taxes identified on the next page, this property is subject to a metropolitan district mill levy (another property tax) of up to: Fifty (50) Mills. Based on the property’s inclusion in the metropolitan district, an average home sales price of $300,000 could result in ADDITIONAL annual property taxes up to: $1,080.00 The next page provides examples of estimated total annual property taxes that could be due on this property, first if located outside the metropolitan district and next if located within the metropolitan district. Note: property that is not within a metropolitan district would not pay the ADDITIONAL amount. The metropolitan district board can be reached as follows: Northfield Metropolitan District No. __ C/O WHITE BEAR ANKELE TANAKA &WALDRON Attention: Robert G. Rogers 2154 E. Commons Ave., Suite 2000 Centennial, CO 80122 Phone: 303-858-1800. You may wish to consult with: (1) the Larimer County Assessor’s Office, to determine the specific amount of metropolitan district taxes currently due on this property; and (2) the metropolitan district board, to determine the highest possible amount of metropolitan district property taxes that could be assessed on this property. a Packet Pg. 388 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 2 ESTIMATE OF PROPERTY TAXES Annual Tax Levied on Residential Property With $300,000 Actual Value Without the District Taxing Entity Mill Levies (2018) Annual tax levied Poudre R-1 General Fund 40.300 $ 870.48 Larimer County 22.403 $ 483.90 Poudre R-1 Bond Payment 12.330 $266.33 City of Fort Collins 9.797 $ 211.62 Poudre River Public Library District 3 $ 64.80 Health District of Northern Larimer County 2.167 $ 46.81 Northern Colorado Water Cons. District 1 $ 21.60 Larimer County Pest Control District .142 $3.07 TOTAL: 91.139 $ 1,968.61 Annual Tax Levied on Residential Property With $300,000 Actual Value With the District (Assuming Maximum District Mill Levy) Taxing Entity Mill Levies (2018) Annual tax levied Northfield Metropolitan District No. __ 50.000 $1,080 Poudre R-1 General Fund 40.300 $ 870.48 Larimer County 22.403 $ 483.90 Poudre R-1 Bond Payment 12.330 $266.33 City of Fort Collins 9.797 $ 211.62 Poudre River Public Library District 3 $ 64.80 Health District of Northern Larimer County 2.167 $ 46.81 Northern Colorado Water Cons. District 1 $ 21.60 Larimer County Pest Control District .142 $3.07 TOTAL: 141.139 $3,048.61 a Packet Pg. 389 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 3 **This estimate of mill levies is based upon mill levies certified by the Larimer County Assessor’s Office in December 2018 for collection in 2019, and is intended only to provide approximations of the total overlapping mill levies within the District. The stated mill levies are subject to change and you should contact the Larimer County Assessor’s Office to obtain accurate and current information. Exhibit A Property a Packet Pg. 390 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) H-2 EXHIBIT I FORM OF INTERGOVERNMENTAL AGREEMENT a Packet Pg. 391 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) INTERGOVERNMENTAL AGREEMENT THIS INTERGOVERNMENTAL AGREEMENT (this “Agreement”) is made and entered into by and between the City of Fort Collins, Colorado, a Colorado home rule municipality (the “City”), and Northfield Metropolitan District Nos. 1-3, quasi-municipal corporations and political subdivisions of the State of Colorado (collectively, the “Districts”). The City and the Districts shall be collectively referred to as the “Parties.” RECITALS WHEREAS, the Districts were organized to provide those services and to exercise powers as are more specifically set forth in the Districts’ Service Plan dated ___________________, 2019, which may be amended from time to time as set forth therein (the “Service Plan”); and WHEREAS, the Service Plan requires the execution of an intergovernmental agreement between the City and the Districts to provide the City with contract remedies to enforce the requirements and limitations imposed on the Districts in the Service Plan; and WHEREAS, the City and the Districts have determined it to be in their best interests to enter into this Agreement as provided in the Service Plan. NOW, THEREFORE, for and in consideration of the covenants and mutual agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: COVENANTS AND AGREEMENTS 1. Incorporation by Reference. The Service Plan is hereby incorporated in this Agreement by this reference. The Districts agree to comply with all provisions of the Service Plan, as it may be amended from time to time in accordance with the provisions thereof, and the provisions of Article 1 of Title 31 of the Colorado Revised Statutes (the "Special District Act"). Capitalized terms used herein not otherwise defined in this Agreement shall have the meanings, respectfully, specified in the Service Plan. 2. City Prior Approvals. The Districts shall obtain any prior City, City Manager or City Council approvals as required in the Service Plan before undertaking any action requiring such approval. 3. Enforcement. The Parties agree that this Agreement may be enforced at law or in equity, including actions seeking specific performance, mandamus, prohibitory or mandatory injunctive relief, or other appropriate relief. The Parties also agree that this Agreement may be enforced pursuant to C. R. S. Section 32-1-207 and other provisions of the Special District Act granting rights to municipalities or counties approving a service plan of a special district. 4. Amendment. This Agreement may be amended, modified, changed, or terminated in whole or in part only by a written agreement duly authorized and executed by the Parties hereto. a Packet Pg. 392 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 5. Governing Law; Venue. This Agreement shall be governed by and construed under the applicable laws of the State of Colorado. Venue for any judicial action to interpret or enforce this Agreement shall be in Larimer County District Court of the Eighth Judicial District for the State of Colorado. 6. Beneficiaries. Except as otherwise stated herein, this Agreement is intended to only describe the rights and responsibilities of and between the named Parties and is not intended to and shall not be deemed to confer any rights upon any other persons or entities not named as parties in this Agreement. 7. Effect of Invalidity. If any portion of this Agreement is held invalid or unenforceable for any reason by a court of competent jurisdiction as to any or all the Parties, such portion shall be deemed severable and its invalidity or its unenforceability shall not cause the entire Agreement to be terminated. 8. Assignability. Neither the City nor the Districts shall assign their rights or delegate their duties hereunder without the prior written consent of the other Parties. Any assignment of rights or delegation of duties without such prior written consent shall be deemed null and void and of no effect. Notwithstanding the foregoing, the City and the Districts may enter into contracts or other agreements with third parties to perform any of their respective duties required under this Agreement. 9. Successors and Assigns. This Agreement and the rights and obligations created hereby shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. NORTHFIELD METROPOLITAN DISTRICT NO. 1 By: President ATTEST: NORTHFIELD METROPOLITAN DISTRICT NO. 2 By: President ATTEST: a Packet Pg. 393 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) NORTHFIELD METROPOLITAN DISTRICT NO. 3 By: President ATTEST: CITY OF FORT COLLINS By: Mayor ATTEST: City Clerk a Packet Pg. 394 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 2165.0003: 983698 CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO CERTIFICATION OF MAILING NOTICE OF PUBLIC HEARING IN RE NORTHFIELD METROPOLITAN DISTRICT NOS. 1-3, CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO I, Catherine V. Will, of lawful age and duly sworn, state: 1. I am a paralegal at the law firm of White Bear Ankele Tanaka & Waldron acting on behalf of the proposed District in the above captioned matter. 2. That, pursuant to Section 3(H) of the City of Fort Collins Policy for Reviewing Service Plans for Metropolitan Districts, the Notice of Public Hearing on Service Plan, a copy of which is attached hereto as Exhibit A, was provided by U.S. first class mail on July 19, 2019, to the owners of record of all real property within the District as such owners of record are listed in the proposed service plan, as set forth on the list attached hereto as Exhibit B. Signed this 7th day of August, 2019. By: Catherine V. Will EXHIBIT B b Packet Pg. 395 Attachment: Exhibit B (8344 : Northfield Metro District APPROVAL Reso) EXHIBIT A NOTICE OF PUBLIC HEARING ON SERVICE PLAN b Packet Pg. 396 Attachment: Exhibit B (8344 : Northfield Metro District APPROVAL Reso) NOTICE OF PUBLIC HEARING FOR THE ORGANIZATION OF A SPECIAL DISTRICT IN RE THE ORGANIZATION OF NORTHFIELDMETROPOLITAN DISTRICT NOS. 1-3, CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO NOTICE IS HEREBY GIVEN that, pursuant to § 32-1-204(1), C.R.S., a Service Plan (the “Service Plan”) for the proposed Northfield Metropolitan District Nos. 1-3 (“Districts”) has been filed and is available for public inspection in the office of the City Clerk of the City of Ft. Collins. A public hearing on the Service Plan will be held by the City Council of the City of Ft. Collins (the “City Council”) on Tuesday, August 20, 2019, at 6:00 p.m., at City Council Chambers, City Hall West, 300 LaPorte Avenue, Ft. Collins, Colorado, or as soon thereafter as the City Council may hear such matter. The Districts are metropolitan districts. Public improvements authorized to be planned, designed, acquired, constructed, installed, relocated, redeveloped and financed, specifically including related eligible costs for acquisition and administration, as authorized by the Special District Act, except as specifically limited in the Districts’ Service Plan to serve the future taxpayers and property owners of the Districts as determined by the Board of the Districts in its discretion. The maximum mill levy each District is permitted to impose upon the taxable property within its boundaries and shall be Fifty (50) mills for district improvements and operating costs, subject to certain terms as set forth in the Service Plan. The proposed districts will be generally located west of North Lemay Avenue, south of the Lake Canal, and north of the Alta Vista neighborhood, City of Fort Collins, Larimer County, Colorado, currently known as Assessor Parcel Number 9701400002, containing approximately 56.3 acres, as further described in the Service Plan. NOTICE IS FURTHER GIVEN that pursuant to § 32-1-203(3.5), C.R.S., any person owning property in the proposed Districts may request that such property be excluded from the Districts by submitting such request to the Fort Collins City Council no later than ten days prior to the public hearing. All protests and objections must be submitted in writing to the City Manager at or prior to the public hearing or any continuance or postponement thereof in order to be considered. All protests and objections to the Districts shall be deemed to be waived unless presented at the time and in the manner specified herein. BY ORDER OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS b Packet Pg. 397 Attachment: Exhibit B (8344 : Northfield Metro District APPROVAL Reso) EXHIBIT B MAILING LIST OF PROPERTY OWNERS b Packet Pg. 398 Attachment: Exhibit B (8344 : Northfield Metro District APPROVAL Reso) Mailing List of Property Owners SCHLAGEL DONALD E/LL/RH M H/ARVIDSON SL/ROBERTO EG/EJ 1131 LINDENMEIER RD FORT COLLINS, CO 80524 b Packet Pg. 399 Attachment: Exhibit B (8344 : Northfield Metro District APPROVAL Reso) EXHIBIT C c Packet Pg. 400 Attachment: Exhibit C (8344 : Northfield Metro District APPROVAL Reso) c Packet Pg. 401 Attachment: Exhibit C (8344 : Northfield Metro District APPROVAL Reso) 2165.0003: 987085 CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO CERTIFICATION OF MAILING NOTICE OF PUBLIC HEARING IN RE NORTHFIELD METROPOLITAN DISTRICT NOS. 1-3, CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO I, Catherine V. Will, of lawful age and duly sworn, state: 1. I am a paralegal at the law firm of White Bear Ankele Tanaka & Waldron acting on behalf of the proposed District in the above captioned matter. 2. That, pursuant to Section 3(H) of the City of Fort Collins Policy for Reviewing Service Plans for Metropolitan Districts, the Notice of Public Hearing on Service Plan, a copy of which is attached hereto as Exhibit A, was provided by U.S. first class mail on August 22, 2019, to the owners of record of all real property within the District as such owners of record are listed in the proposed service plan, as set forth on the list attached hereto as Exhibit B. Signed this 27th day of August, 2019. By: Catherine V. Will EXHIBIT D d Packet Pg. 402 Attachment: Exhibit D (8344 : Northfield Metro District APPROVAL Reso) EXHIBIT A NOTICE OF PUBLIC HEARING ON SERVICE PLAN d Packet Pg. 403 Attachment: Exhibit D (8344 : Northfield Metro District APPROVAL Reso) NOTICE OF PUBLIC HEARING FOR THE ORGANIZATION OF A SPECIAL DISTRICT IN RE THE ORGANIZATION OF NORTHFIELDMETROPOLITAN DISTRICT NOS. 1-3, CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO NOTICE IS HEREBY GIVEN that, pursuant to § 32-1-204(1), C.R.S., a Service Plan (the “Service Plan”) for the proposed Northfield Metropolitan District Nos. 1-3 (“Districts”) has been filed and is available for public inspection in the office of the City Clerk of the City of Ft. Collins. A public hearing on the Service Plan that was scheduled to be held by the City Council of the City of Ft. Collins (the “City Council”) on Tuesday, August 20, 2019, at 6:00 p.m., was continued by the City Council. A public hearing on the Service Plan will be held by the City Council on Tuesday, September 3, 2019, at 6:00 p.m. at City Council Chambers, City Hall West, 300 LaPorte Avenue, Ft. Collins, Colorado, or as soon thereafter as the City Council may hear such matter. The Districts are metropolitan districts. Public improvements authorized to be planned, designed, acquired, constructed, installed, relocated, redeveloped and financed, specifically including related eligible costs for acquisition and administration, as authorized by the Special District Act, except as specifically limited in the Districts’ Service Plan to serve the future taxpayers and property owners of the Districts as determined by the Board of the Districts in its discretion. The maximum mill levy each District is permitted to impose upon the taxable property within its boundaries and shall be Fifty (50) mills for district improvements and operating costs, subject to certain terms as set forth in the Service Plan. The proposed districts will be generally located west of North Lemay Avenue, south of the Lake Canal, and north of the Alta Vista neighborhood, City of Fort Collins, Larimer County, Colorado, currently known as Assessor Parcel Number 9701400002, containing approximately 56.3 acres, as further described in the Service Plan. NOTICE IS FURTHER GIVEN that pursuant to § 32-1-203(3.5), C.R.S., any person owning property in the proposed Districts may request that such property be excluded from the Districts by submitting such request to the Fort Collins City Council no later than ten days prior to the public hearing. All protests and objections must be submitted in writing to the City Manager at or prior to the public hearing or any continuance or postponement thereof in order to be considered. All protests and objections to the Districts shall be deemed to be waived unless presented at the time and in the manner specified herein. BY ORDER OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS d Packet Pg. 404 Attachment: Exhibit D (8344 : Northfield Metro District APPROVAL Reso) EXHIBIT B MAILING LIST OF PROPERTY OWNERS d Packet Pg. 405 Attachment: Exhibit D (8344 : Northfield Metro District APPROVAL Reso) Mailing List of Property Owners SCHLAGEL DONALD E/LL/RH M H/ARVIDSON SL/ROBERTO EG/EJ 1131 LINDENMEIER RD FORT COLLINS, CO 80524 d Packet Pg. 406 Attachment: Exhibit D (8344 : Northfield Metro District APPROVAL Reso) EXHIBIT E e Packet Pg. 407 Attachment: Exhibit E (8344 : Northfield Metro District APPROVAL Reso) e Packet Pg. 408 Attachment: Exhibit E (8344 : Northfield Metro District APPROVAL Reso) -1- RESOLUTION 2019-102 OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS MAKING FINDINGS, DETERMINATIONS AND CONCLUSIONS DENYING ON REHEARING THE CONSOLIDATED SERVICE PLAN FOR NORTHFIELD METROPOLITAN DISTRICT NOS. 1-3 WHEREAS, Colorado’s Special District Act in Article 1 of Title 32 of the Colorado Revised Statutes (the “Special District Act”) authorizes the formation of metropolitan districts to finance, construct, operate and maintain certain public improvements and to provide certain public services, but Section 32-1-204.5 in the Colorado Revised Statutes (“C.R.S.”) provides that a metropolitan district cannot be organized within a municipality unless the municipality’s governing body first approves by resolution the district’s proposed service plan; and WHEREAS, on February 5, 2019, City Council adopted Resolution 2019-016 approving the “City of Fort Collins Policy for Reviewing Service Plans for Metropolitan Districts” setting forth guidelines, requirements and criteria applicable to the City’s consideration of metropolitan district service plans (the “City Policy”); and WHEREAS, pursuant to the Special District Act and the City Policy, Landmark Homes (the “Applicant”) submitted its application to the City for City Council’s consideration of a Consolidated Service Plan (the “Service Plan”) for the Northfield Metropolitan District Nos. 1-3 (the “Districts”); and WHEREAS, the Applicant proposes that the Districts be organized to provide for the financing, planning, design, acquisition, construction, installation, relocation, redevelopment, operation and maintenance of all or a portion of certain public improvements described in the Service Plan for the approximately 56.3 acres of land to be included within the Districts’ boundaries as also described in the Service Plan (the “District Property”); and WHEREAS, the Applicant proposes to develop the District Property as a mixed-use development, but primarily as a residential development to include approximately 442 attached housing units (the “Development”); and WHEREAS, in accordance with Section 3.I. of the City Policy, the Applicant has complied with the requirements for mailed and published notice of the City Council’s August 20, 2019, public hearing on the Service Plan; and WHEREAS, on August 20, 2019, the City Council took action which, under Section 2.c. of City Council’s Rules of Procedure dated May 21, 2019, continued its consideration of the Service Plan to its September 3, 2019, regular meeting; and WHEREAS, additional notice of this continued consideration was mailed and published by the Applicant; and Packet Pg. 409 -2- WHEREAS, at its September 3, 2019, the City Council adopted a motion to again continue the hearing on the Service Plan to be held at City Council’s September 17, 2019, meeting; and WHEREAS, on September 17, 2019, the City Council conducted its public hearing on the Service Plan, in which it reviewed the Service Plan and considered the testimony and other evidence concerning it presented at the hearing; and WHEREAS, after the presentation of the testimony and other evidence and Council questions and discussion, a motion was made to adopt City Council Resolution 2019-092 approving the Service Plan, which motion failed on a vote of 4 against and 3 in favor; and WHEREAS, the City Council then adopted a motion (by a vote of 6 in favor and 1 against) directing City staff to prepare a resolution for City Council to consider at its October 1, 2019, to adopt its supporting findings, determinations and conclusions for its denial of the Service Plan; and WHEREAS, at City Council’s adjourned September 24, 2019, meeting, Council adopted a motion to suspend City Council’s Rules of Procedure to allow it to consider a motion from any Councilmember to reconsider the motion by which Council voted down Resolution 2019-092 and to conduct a rehearing on the Service Plan at Council’s October 1, 2019, meeting; and WHEREAS, after so suspending the Rules of Procedures, the City Council adopted a motion to reconsider the motion by which it voted down Resolution 2019-092 and to conduct a rehearing of the Service Plan at Council’s October 1, 2019, meeting; and WHEREAS, the City Council conducted the rehearing on the Service Plan at its October 1, 2019, meeting and received additional testimony and evidence, which together with the September 17, 2019, hearing constitutes the public hearing in this matter; and WHEREAS, at the conclusion of the hearing, the City Council considered the adoption of Resolution 2019-101 to approve the Service Plan, as revised, and a motion to approve it failed; and WHEREAS, this Resolution sets forth and represents the City Council’s adopted findings, determinations and conclusions supporting its denial of the Service Plan on rehearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, as follows: Section 1. That the City Council hereby makes and adopts the findings, determinations and conclusions contained in the recitals set forth above. Section 2. That the City Council hereby finds, determines and concludes that the City’s notice requirements in the City Policy have been substantially complied with by the Packet Pg. 410 -3- Applicant regarding the City Council’s public hearing on the Service Plan conducted on September 17, 2019, and the public rehearing on October 1, 2019. Section 3. That the City Council hereby finds, determines and concludes under and in accordance with C.R.S. Sections 32-1-203(2)(b) and 32-1-204.5(1)(b) that the Applicant and the testimony and other evidence presented in the hearing have failed to establish, to the City Council’s satisfaction, that the existing public services in the area available to serve the existing and projected needs for the District Property are inadequate and, therefore, require the formation of the Districts. Instead, the testimony and other evidence established that the Development and public improvements and services needed for it can be adequately provided by existing public services available to the District Property without the need for the Districts to be formed to provide such services. The Applicant has therefore failed to establish, as required by C.R.S. Section 32-1-203(2)(b), that the existing service in the area of the District Property is inadequate for the present and future needs of the proposed Development. Section 4. That the City Council hereby finds, determines and concludes under and in accordance with C.R.S. Sections 32-1-203(2)(c) and 32-1-204.5(1)(b) that the Applicant and the testimony and other evidence presented in the hearing have failed to establish, to the City Council’s satisfaction, that the Districts are capable of providing economical service to the District Property. Instead, the testimony and other evidence established that when the estimated price of the housing units to be built by the Applicant within the Development is considered in relationship to the fifty (50) mill property tax to be imposed by the Districts under the Service Plan on such housing units, which will almost double the property taxes on the units, the services to be provided will not be economical or affordable for Fort Collins residents likely to purchase a home in the area of the District Property. The Applicant has therefore failed to establish, as required by C.R.S. Section 32-1-203(2)(c), that the Districts are capable of providing economical service to the District Property. Section 5. That the City Council hereby finds, determines and concludes that the Service Plan and the public benefits to be provided under it do not sufficiently provide, to the City Council’s satisfaction, “extraordinary public benefits that align with the goals and objectives of the City” as required by Section 1.A. in the City Policy. The Service Plan fails to do this for the following reasons: [List reasons]. Section 6. That the City Council hereby finds, determines and concludes, based on all of the foregoing, that the Applicant has failed to satisfy to the City Council’s satisfaction that the Service Plan meets all of the applicable requirements of the Special District Act and the City Policy and, therefore, the City Council hereby denies approval of the Service Plan. Packet Pg. 411 -4- Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 412 Agenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY October 1, 2019 City Council STAFF Jamie Heckman, Compensation and Technology Manager Jenny Lopez Filkins, Legal SUBJECT First Reading of Ordinance No. 116, 2019, Approving a One-Time Payment of Accrued, Unused 2018 Paid Time Off Hours to the City Manager and City Attorney. EXECUTIVE SUMMARY The purpose of this item is to approve a one-time payment of accrued, unused 2018 paid time off hours to the City Manager and City Attorney. STAFF RECOMMENDATION None. BACKGROUND / DISCUSSION The City Manager and City Attorney reached and exceeded the carryover limit for vacation at the end of the 2018 “leave benefit year”. They were also unable to use some of their holiday hours, which do not carry over to subsequent leave benefit years. The details of the hours lost are as follows: CITY MANAGER Vacation Hours Lost: 115.79 Payment Amount: $14,612 Holiday Hours Lost: 20.50 Payment Amount: $2,587 Total Payment Amount: $17,199 CITY ATTORNEY Vacation Hours Lost: 101.90 Payment Amount: $9,517 Holiday Hours Lost: 47.00 Payment Amount: $4,390 Total Payment Amount: $13,907 The City Council established an ad-hoc committee known as the Direct Reports Compensation Committee to review, discuss and recommend a total compensation strategy to be applied to their direct reports. The Direct Reports Compensation Committee recommended the City Council consider a one-time payment to the City Manager and City Attorney for accrued, unused 2018 paid time off hours. 13 Packet Pg. 413 Agenda Item 13 Item # 13 Page 2 ATTACHMENTS 1. PowerPoint Presentation (PDF) 13 Packet Pg. 414 1 2018 Time Lost Payment Teresa Roche October 1, 2019 ATTACHMENT 1 13.1 Packet Pg. 415 Attachment: PowerPoint Presentation (8331 : Payment of 2018 Hours Lost) • City Manager and City Attorney  Reached and exceeded carryover limit for vacation at the end of 2018  Unable to use some 2018 holiday hours, which do not carryover • Discussed with ad-hoc Direct Reports Compensation Committee 2 Overview 13.1 Packet Pg. 416 Attachment: PowerPoint Presentation (8331 : Payment of 2018 Hours Lost) 2018 Hours Lost City Manager • Vacation Hours Lost: 115.79 Payment: $14,612 • Holiday Hours Lost: 20.50 Payment: $2,587 City Attorney • Vacation Hours Lost: 101.90 Payment: $9,517 • Holiday Hours Lost: 47.00 Payment: $4,390 3 13.1 Packet Pg. 417 Attachment: PowerPoint Presentation (8331 : Payment of 2018 Hours Lost) 4 COUNCIL DISCUSSION 13.1 Packet Pg. 418 Attachment: PowerPoint Presentation (8331 : Payment of 2018 Hours Lost) -1- ORDINANCE NO. 116, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING A ONE-TIME PAYMENT OF ACCRUED, UNUSED 2018 PAID TIME OFF HOURS TO THE CITY MANAGER AND CITY ATTORNEY WHEREAS, pursuant to Article III, Section 1 of the City Charter, the City Council is responsible for fixing the compensation of the City Manager; and WHEREAS, pursuant to Article VI, Section 1 of the City Charter, the City Council is responsible for fixing the compensation of the City Attorney; and WHEREAS, Fort Collins Municipal Code Section 2-596 sets the base salary to be paid to the City Manager; and WHEREAS, Fort Collins Municipal Code Section 2-581 sets the base salary to be paid to the City Attorney; and WHEREAS, on October 16, 2018, the City Council approved Resolution 2018-098, which says that any change in the compensation of the City Manager or City Attorney shall be approved by Council by ordinance; and WHEREAS, by the end of the 2018 leave-benefit year, the City Manager and City Attorney vacation hour balances exceeded the carryover limit and each was unable to use several hours of earned vacation; and WHEREAS, the City Manager and City Attorney also worked on several holidays and were therefore unable to use paid holiday hours granted to them in the 2018 leave-benefit year; and WHEREAS, the City Manager and City Attorney’s terms and conditions of employment are addressed in employment agreements approved by the City Council; and WHEREAS, a one-time exception to the City Manager’s or City Attorney’s employment agreement does not require either agreement to be amended; and WHEREAS, the City Council appointed ad-hoc committee known as the Direct Reports Compensation Committee recommended that the City Council consider a one-time payment to the City Manager and City Attorney for accrued, unused 2018 paid time off hours; and WHEREAS, the City Council believes a one-time exception to each employee’s employment agreement authorizing a payment to the City Manager and the City Attorney for accrued, unused 2018 paid time off hours is appropriate. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Packet Pg. 419 -2- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That notwithstanding the terms of the City Manager’s employment agreement or the provisions of Resolution 2018-098, the City Council approves a one-time payment to the City Manager for 115.79 accrued, unused vacation hours and 20.5 accrued, unused holiday hours, to be calculated using the City Manager’s 2018 rate of pay. Section 3. That notwithstanding the terms of the City Attorney’s employment agreement or the provisions of Resolution 2018-098, the City Council approves a one-time payment to the City Attorney for 101.90 accrued, unused vacation hours and 47 accrued, unused holiday hours, to be calculated using the City Attorney’s 2018 rate of pay. Section 4. That the date of the payment shall be within 14 days of the date this ordinance becomes final. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2019, and to be presented for final passage on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 420 06/01/2055 134,600 134,600 12/01/2055 910,000 4.000% 134,600 1,044,600 1,179,200 06/01/2056 116,400 116,400 12/01/2056 1,015,000 4.000% 116,400 1,131,400 1,247,800 06/01/2057 96,100 96,100 12/01/2057 1,060,000 4.000% 96,100 1,156,100 1,252,200 06/01/2058 74,900 74,900 12/01/2058 1,175,000 4.000% 74,900 1,249,900 1,324,800 06/01/2059 51,400 51,400 12/01/2059 1,220,000 4.000% 51,400 1,271,400 1,322,800 06/01/2060 27,000 27,000 12/01/2060 1,350,000 4.000% 27,000 1,377,000 1,404,000 14,870,000 13,214,800 28,084,800 28,084,800 15 a Packet Pg. 362 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 12/01/2045 605,000 5.000% 138,875 743,875 882,750 06/01/2046 123,750 123,750 12/01/2046 685,000 5.000% 123,750 808,750 932,500 06/01/2047 106,625 106,625 12/01/2047 720,000 5.000% 106,625 826,625 933,250 06/01/2048 88,625 88,625 12/01/2048 815,000 5.000% 88,625 903,625 992,250 06/01/2049 68,250 68,250 12/01/2049 855,000 5.000% 68,250 923,250 991,500 06/01/2050 46,875 46,875 12/01/2050 1,875,000 5.000% 46,875 1,921,875 1,968,750 10,020,000 12,021,750 22,041,750 22,041,750 10 a Packet Pg. 357 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 4/25/2019 C NMD Fin Plan 19 Abs Prepared by D.A. Davidson & Co. 7 a Packet Pg. 354 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Packet Pg. 353 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 12,579,568 10.000 123,280 120,814 244,094 50.000 13,334,342 10.000 130,677 128,063 258,740 50.000 13,334,342 10.000 130,677 128,063 258,740 50.000 14,134,403 10.000 138,517 135,747 274,264 50.000 14,134,403 10.000 138,517 135,747 274,264 50.000 14,982,467 10.000 146,828 143,892 290,720 50.000 14,982,467 10.000 146,828 143,892 290,720 50.000 15,881,415 10.000 155,638 152,525 308,163 50.000 15,881,415 10.000 155,638 152,525 308,163 50.000 16,834,300 10.000 164,976 161,677 326,653 50.000 16,834,300 10.000 164,976 161,677 326,653 50.000 17,844,358 10.000 174,875 171,377 346,252 50.000 17,844,358 10.000 174,875 171,377 346,252 50.000 18,915,019 10.000 185,367 181,660 367,027 50.000 18,915,019 10.000 185,367 181,660 367,027 50.000 20,049,920 10.000 196,489 192,559 389,049 50.000 20,049,920 10.000 196,489 192,559 389,049 50.000 21,252,915 10.000 208,279 204,113 412,392 50.000 21,252,915 10.000 208,279 204,113 412,392 50.000 22,528,090 10.000 220,775 216,360 437,135 50.000 22,528,090 10.000 220,775 216,360 437,135 50.000 23,879,776 10.000 234,022 229,341 463,363 50.000 23,879,776 10.000 234,022 229,341 463,363 50.000 25,312,562 10.000 248,063 243,102 491,165 50.000 25,312,562 10.000 248,063 243,102 491,165 50.000 26,831,316 10.000 262,947 257,688 520,635 50.000 26,831,316 10.000 262,947 257,688 520,635 50.000 28,441,195 10.000 278,724 273,149 551,873 50.000 28,441,195 10.000 278,724 273,149 551,873 50.000 30,147,667 10.000 295,447 289,538 584,985 50.000 30,147,667 10.000 295,447 289,538 584,985 50.000 31,956,527 10.000 313,174 306,910 620,084 50.000 31,956,527 10.000 313,174 306,910 620,084 50.000 33,873,918 10.000 331,964 325,325 657,290 50.000 _______ ________ _______ 7,556,911 7,405,772 14,962,683 4/25/2019 C NMD Fin Plan 19 NR SP Fin Plan+2030 IG Refg Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 3 a Packet Pg. 350 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 90,570 0 0 90,570 0 103,470 182% 7% 0.0% 0.0% 228,878 0 0 228,878 0 332,348 115% 6% 0.0% 0.0% 361,802 501,000 501,000 (139,198) 0 193,150 93% 6% 72.2% 72.2% 450,046 501,000 501,000 (50,954) 0 142,196 80% 5% 89.8% 89.8% 518,186 516,000 516,000 2,186 0 144,383 80% 5% 100.4% 100.4% 522,706 520,250 520,250 2,456 0 146,839 75% 5% 100.5% 100.5% 554,069 549,250 549,250 4,819 0 151,658 75% 5% 100.9% 100.9% 554,069 551,750 551,750 2,319 0 153,976 70% 5% 100.4% 100.4% 587,313 584,000 $0 584,000 155,000 (151,687) 0 2,289 105% 7% 100.6% 100.6% 587,313 [Ref'd by ser. '30] 545,233 545,233 42,079 0 44,368 99% 7% 107.7% 107.7% 622,551 619,800 619,800 2,751 0 47,120 99% 7% 100.4% 100.4% 622,551 618,800 618,800 3,751 0 50,871 93% 6% 100.6% 100.6% 659,905 657,800 657,800 2,105 0 52,976 93% 6% 100.3% 100.3% 659,905 655,200 655,200 4,705 0 57,680 87% 6% 100.7% 100.7% 699,499 697,600 697,600 1,899 0 59,579 87% 6% 100.3% 100.3% 699,499 698,200 698,200 1,299 0 60,878 81% 6% 100.2% 100.2% 741,469 738,600 738,600 2,869 0 63,747 80% 6% 100.4% 100.4% 741,469 737,200 737,200 4,269 0 68,015 75% 5% 100.6% 100.6% 785,957 785,600 785,600 357 0 68,372 74% 5% 100.0% 100.0% 785,957 781,800 781,800 4,157 0 72,529 68% 5% 100.5% 100.5% 833,114 832,800 832,800 314 0 72,843 67% 5% 100.0% 100.0% 833,114 831,400 831,400 1,714 0 74,558 62% 4% 100.2% 100.2% 883,101 879,600 879,600 3,501 0 78,059 60% 4% 100.4% 100.4% 883,101 880,400 880,400 2,701 0 80,760 55% 4% 100.3% 100.3% 936,087 935,600 935,600 487 0 81,247 53% 4% 100.1% 100.1% 936,087 933,000 933,000 3,087 0 84,334 48% 3% 100.3% 100.3% 992,252 989,800 989,800 2,452 0 86,787 46% 3% 100.2% 100.2% 992,252 988,600 988,600 3,652 0 90,439 41% 3% 100.4% 100.4% 1,051,788 1,046,600 1,046,600 5,188 0 95,627 39% 3% 100.5% 100.5% 1,051,788 1,051,400 1,051,400 388 0 96,015 34% 2% 100.0% 100.0% 1,114,895 1,110,000 1,110,000 4,895 0 100,909 31% 2% 100.4% 100.4% 1,114,895 1,110,200 1,110,200 4,695 0 105,604 27% 2% 100.4% 100.4% 1,181,789 1,179,200 1,179,200 2,589 0 108,193 24% 2% 100.2% 100.2% 1,181,789 1,179,200 1,179,200 2,589 0 110,781 19% 1% 100.2% 100.2% 1,252,696 1,247,800 1,247,800 4,896 0 115,677 16% 1% 100.4% 100.4% 1,252,696 1,252,200 1,252,200 496 0 116,173 12% 1% 100.0% 100.0% 1,327,858 1,324,800 1,324,800 3,058 0 119,231 8% 1% 100.2% 100.2% 1,327,858 1,322,800 1,322,800 5,058 0 124,288 4% 0% 100.4% 100.4% 1,407,529 1,404,000 1,404,000 3,529 127,817 0 0% 0% 100.3% 100.3% _________ _________ _________ _________ _________ _________ _________ 32,041,301 3,723,250 28,035,233 31,758,483 155,000 127,817 127,817 [CApr2519 20nrspC] [CApr2519 30igspC] [*] Estimated balance (tbd). 4/25/2019 C NMD Fin Plan 19 NR SP Fin Plan+2030 IG Refg Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 2 a Packet Pg. 349 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 1 a Packet Pg. 348 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) Connector Local Street (36' Section) Off-Site Suniga Rd 4-lane Arterial (83' Section) Street Lighting Subtotal Storm Drainage Improvements RCP Storm Sewer Subtotal 6" Waterline 10" Waterline 12" Waterline Utility Borings Raw Water Requirements Subtotal Sanitary Sewer Improvements 8" Sanitary Sewer 10" Sanitary Sewer Existing 18" to 24" Sanitary Sewer Upsize Subtotal a Packet Pg. 339 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 6" Waterline Earthwork (cut/fill/place) Erosion Control / Traffic Control Roadway Improvements Note: Quantities in this subcategory reflect public portion of site (80.5%) Grading/Miscellaneous Mobilization / General Conditions BASIC PUBLIC IMPROVEMENT COSTS FOR NORTHFIELD METRO DISTRICT NOS. 1-3 The units and cost below are best assumptions based on the level of information available at this time in design. Street section in reference to LCUASS Connector Local street section, and pavement section in reference to geotech report Public Improvements Description Connector Local Street (36' Section) Off-Site Suniga Rd 4-lane Arterial (83' Section) Street Lighting Metro District Owned Drives (26' Section) Subtotal Subtotal a Packet Pg. 337 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) S 89°11'25" E 19.00' N 00°48'35" E 9.00' N 89°11'25" W 19.00' S 00°48'35" W 9.00' P:\Project\2016\16057\dwg\16057d012_D3.dwg May 03, 2019 - 9:23am Office 970.669.2100 - Info@plscorporation.com PLS Corporation Loveland, Colorado 80538 532 West 66th Street # Date R e v i s i o n s Party Chief Survey Tech Proj. Manager Field Date Prepared for: Project#: NOTICE: According to Colorado law you must commence any legal action based upon any defect in this survey within three years after you first discover such defect. In no event, may any action based upon any defect in this survey be commenced more than ten years from the date of the certification shown hereon. Description Exhibit MBS MDG N/A N/A Highland Development Services, Inc. 16057.012-D3 Detail 1" = 50' Scale 1 inch = 200 feet 200 0 100 200 400 see sheet 1 for description sheet 2 of 2 a Packet Pg. 327 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) a Packet Pg. 326 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) 9.00' 19.00' 9.00' 19.00' 9.00' Bearing N 86°10'06" W S 41°24'11" E N 80°24'34" E S 89°43'26" E N 89°11'25" W N 00°48'35" E S 89°11'25" E S 00°48'35" W N 89°11'25" W N 00°48'35" E S 89°11'25" E S 00°48'35" W Curve Table Curve # C1 C2 C3 Length 527.47' 338.65' 131.98' Radius 8500.00' 640.73' 766.41' Delta 3°33'20" 30°16'59" 9°52'01" Chord Bearing N 87°56'46" W N 65°12'14" E N 85°20'34" E Chord Length 527.39' 334.72' 131.82' N 84°48'57" W 1688.87' N 85°25'31" W 1687.59' L11 L10 L9 L12 L7 L6 L5 L8 POINT OF BEGINNING - D1 POINT OF BEGINNING - D3 East 1 4 Corner of Section 1, Township 7 North, Range 69 West P:\Project\2016\16057\dwg\16057d012_D2.dwg May 03, 2019 - 9:21am Office 970.669.2100 - Info@plscorporation.com PLS Corporation Loveland, Colorado 80538 532 West 66th Street # Date R e v i s i o n s Party Chief Survey Tech Proj. Manager Field Date Prepared for: Project#: NOTICE: According to Colorado law you must commence any legal action based upon any defect in this survey within three years after you first discover such defect. In no event, may any action based upon any defect in this survey be commenced more than ten years from the date of the certification shown hereon. Description Exhibit MBS MDG N/A N/A Highland Development Services, Inc. 16057.012-D2 Scale 1 inch = 200 feet 200 0 100 200 400 Detail 1" = 50' see sheet 1 for description sheet 2 of 2 a Packet Pg. 324 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) thence N 89°11'25" W for a distance of 19.00 feet; thence N 00°48'35" E for a distance of 9.00 feet; thence S 89°11'25" E for a distance of 19.00 feet; thence S 00°48'35" W for a distance of 9.00 feet to the Point of Beginning - D3. Containing 43.074 acres more or less. Written by M. Bryan Short, Colorado PLS 32444 a Packet Pg. 323 Attachment: Exhibit A (8344 : Northfield Metro District APPROVAL Reso) and/or biking distance to some of the largest employment hubs. Infill/ Redevelopment Environmental Sustainability Critical Public Infrastructure Smart Growth Management Strategic Priorities GHG Reduction Off-Site Northfield plans to replace and upsize the sewer line from Vine Drive, around Alta Vista, and along a portion of Lemay Avenue. Mixed-Use Clubhouse will offer light commercial use on the first floor. 12.7 Packet Pg. 284 Attachment: PowerPoint Presentation (8335 : Northfield Metro District Service Plan) 2038 2039 2040 2041 2042 Implied Catpure Rate Source: DA Davidson; Economic & Planning Systems 12.4 Packet Pg. 253 Attachment: EPS Northfield Metro District Review (8335 : Northfield Metro District Service Plan) 12.3 Packet Pg. 240 Attachment: Triple Bottom Line Summary (8335 : Northfield Metro District Service Plan)