HomeMy WebLinkAbout1998-133-09/22/1998-DISAPPROVING THE SERVICE PLAN FOR RICHARDS LAKE METROPOLITAN DISTRICT RESOLUTION 98-133
OF THE COUNCIL OF THE CITY OF FORT COLLINS
DISAPPROVING THE SERVICE PLAN FOR
RICHARD'S LAKE METROPOLITAN DISTRICT
WHEREAS, there has been presented to the Council of the City of Fort Collins (the
"Council")for its consideration in accordance with the provisions of Title 32,Article 1,Part 2 of the
Colorado Revised Statutes,as amended,the"Service Plan for Richard's Lake Metropolitan District"
dated September 3, 1998,a copy of which is attached hereto as Exhibit"A"and incorporated herein
by reference (the "Service Plan"); and
WHEREAS,pursuant to the provisions of Title 32,Article 1,Part 2 of the Colorado Revised
Statutes, as amended, the Council held a public hearing on March 17, 1998, which hearing was
continued to September 15, 1998, and again to September 22, 1998; and
WHEREAS, notice of this hearing was duly published in the Fort Collins Coloradoan, a
newspaper of general circulation within the City of Fort Collins, on February 24, 1998, as required
by law, and such notice was sent to the petitioners seeking approval of the Service Plan for the
proposed Richard's Lake Metropolitan District (the "District"), and to the governing body of any
existing municipality located within a radius of three (3) miles of the District and to any special
district which has levied an ad valorem tax within the next preceding tax year and which is also
located within a radius of three (3) miles of the District; and
WHEREAS, said notice of hearing was also sent to the Colorado Division of Local
Government and to all property owners within the boundaries of the District and to the owners of
real property located within three (3) miles of the boundaries of the District; and
WHEREAS,the Service Plan proposes for the District to provide certain organized services
for the area to be included in the District ("the District Area"), which services relate to the
construction of streets, parks and stormwater facilities, and for the future maintenance of the parks
and stormwater facilities ("the Proposed Services"); and
WHEREAS, the Council has considered the Service Plan and all of the testimony and
evidence presented at the hearing; and
WHEREAS, C.R.S. Sections 32-1-203(2) and 32-1-204.5(1) require the Council to
disapprove the Service Plan unless evidence satisfactory to the Council is presented to it that all of
the mandatory criteria set forth in C.R.S. Section 32-1-203(2)(a), (b), (c) and (d) have been met.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Council hereby determines that all of the requirements of Title 32,
Article 1, Part 2 of the Colorado Revised Statutes, as amended, relating to the filing of the Service
Plan for the District have been fulfilled and that the notice of the hearing was given in the time and
the manner required by law.
Section 2. That the Council hereby finds as follows:
A. Because the District Area is currently vacant, undeveloped land, there is not
sufficient existing need for the Proposed Services in the District Area and the
existing services relating to streets, parks and stormwater facilities in the District
Area are adequate for the present needs of the Area;
B. If and when the District Area is developed, the projected need for the Proposed
Services will be adequately served by the construction of streets, parks and
stormwater facilities that will be required and provided to the development under the
Code of the City of Fort Collins and by the City of Fort Collins providing future
maintenance for such parks and stormwater facilities; and
C. Because the financial assumptions of the District's Financing Plan contained in the
Service Plan are based on speculative predictions about future market conditions
relative to the development of the District Area, the District may not be capable of
providing economically and sufficiently those Proposed Services that relate to the
future maintenance of the parks and stormwater facilities and the District Area may
not have the financial ability to discharge the proposed indebtedness of the District
on a reasonable basis.
Section 3. Based on the foregoing findings, the Council hereby concludes that the Service
Plan fails to satisfy all of the mandatory criteria of C.R.S. 32-1-203(2). The Council therefore
disapproves the Service Plan.
Passed and adopted at an adjourned meeting of the City C held this da
September A.D. 1998.
avor
ATTEST:
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City Clerk
EXHIBIT A
SERVICE PLAN
FOR
RICHARD'S LAKE
METROPOLITAN DISTRICT
September 3, 1998
TABLE OF CONTENTS
I. INTRODUCTION..............................................................................................
II. PURPOSE OF AND NEED FOR THE PROPOSED DISTRICT.........................2
A. PURPOSE AND INTENT........................................................................................ 2
B. NEED FOR DISTRICT............................................................................................ 2
C. GENERAL POWERS............................................................................................... 3
1. Specific Powers. .................................................................................................... 3
2. Miscellaneous Powers. .......................................................................................... 3
III. BOUNDARIES; POPULATION AND ASSESSED
VALUATION ESTIMATES............................ 4
A. GENERAL................................................................................................................ 4
B. CHANGES IN BOUNDARIES................................................................................ 4
C. POPULATION AND ASSESSED VALUATION ESTIMATES............................ 4
IV. DESCRIPTION OF PROPOSED FACILITIES..................................................... 4
A. STREET IMPROVEMENTS. .................................................................................. 5
1. Roadway Infrastructure. ........................................................................................ 5
2. Drainage Facilities................................................................................................. 5
3. Cost Estimates. ...................................................................................................... 5
B. PARK AND RECREATION IMPROVEMENTS; LANDSCAPING..................... 5
1. Parks. ..................................................................................................................... 6
2. Recreation.............................................................................................................. 6
3. Trails...................................................................................................................... 6
4. Street Landscaping. ............................................................................................... 6
5. Cost Estimates. ...................................................................................................... 6
C. COST ESTIMATE SUMMARY........................
D. CONSTRUCTION STANDARDS........................................................................... 6
E. DEDICATION OF IMPROVEMENTS. ................................................................. 6
F. OWNERSHIP/OPERATION OF FACILITIES BY DISTRICT. ............................ 7
G. SERVICES OF DISTRICT. ..................................................................................... 7
V. FINANCIAL PLAN................................................................................................... 7
A. GENERAL PLAN OF FINANCE............................................................................ 7
B. OPERATING COSTS. ............................................................................................. 9
C. OTHER FINANCIAL INFORMATION.................................................................. 9
D. ELECTIONS AND CONDITIONS ON EXERCISE OF FINANCLAL
POWERS. ............................................................................................................... 10
VI. GENERAL MATTERS........................................................................................... 10
A. ELECTIONS........................................................................................................... 10
B. MODIFICATION OF SERVICE PLAN............................................................... 11
C. RESOLUTION OF APPROVAL. .......................................................................... 11
D. DISCLOSURE........................................................................................................ 11
VII. CONCLUSION ..................................................................................................... 11
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LIST OF EXHIBITS
EXHIBIT A City Council Resolution of Approval
EXHIBIT B Legal Description
EXHIBIT C Boundary Map
EXHIBIT D Statutory Contents of Service Plan
EXHIBIT E FaciIities Diagram
EXHIBIT F Estimated Capital Costs
EXHIBIT G Financing Plan
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I. INTRODUCTION
This Service Plan ("Service Plan") for Richard's Lake Metropolitan District (hereinafter
the "District") is for a special district proposed to be organized to serve the needs of a new
community to be known as "Richard's Lake." The proposed District is generally located north
and west of Richard's Lake Road and County Road 11 and contains approximately 181 acres.
The primary purpose of the proposed District is to provide public improvements to be
dedicated to Fort Collins or retained by the District for the use and benefit of the District's
inhabitants and taxpayers. The District will retain responsibility for maintenance of all drainage
improvements outside public rights-of-way and will agree with Fort Collins on an acceptable
standard of maintenance. This will eliminate the potential burden on the City for maintenance of
drainage improvements, and will reduce homeowner association costs for property owners.
Improvements to be provided by the District shall include the types of facilities and
improvements generally described in Section II.C. below, consisting of streets, drainage
improvements, and park and recreation facilities needed for the area. The City will maintain
storm drainage facilities within the right-of-way of streets.
It is hoped that the district structure set forth herein can serve as a model of how
development should occur in Fort Collins in such a way as to eliminate economic risk to the City,
provide economic benefits to property owners, and place the risk of development on property
developers.
This Service Plan consists of a financial analysis and engineering information showing
how the facilities and services of the District can be provided and financed economically.
Numerous items are addressed in this Service Plan in order to satisfy the requirements of law for
formation of special districts. Those items are listed in Exhibit D attached hereto. This Service
Plan satisfies each of the requirements of law.
The Financing Plan discussed herein has been designed to assure that at no time will
obligations of the District ever be in risk of default, and that the City of Fort Collins will never
have any legal responsibility for any of the District's obligations. This Service Plan is designed
to assure that the risk of development remains with the developer until a sufficient tax base has
been achieved to pay the District's debt with reasonable mill levies. Debt service mill levies are
proposed to be capped, initial bond issues will be purchased by the developer, and public sale of
District obligations will not occur until the requirements of this Service Plan have been met.
This Service Plan has been prepared with sufficient flexibility to enable the District to
provide required services and facilities under evolving circumstances to meet the needs of the
community. While the assumptions upon which this Service Plan are generally based are
reflective of current zoning for the property within the proposed District, the cost estimates and
the Financing Plan are sufficiently flexible to enable the District to provide necessary services
and facilities without the need for repeated amendments to the Service Plan. Modification of the
proposed configuration of improvements, scheduling of construction of such improvements, as
well as the locations and dimensions of various facilities and improvements shall be permitted to
accommodate development needs consistent with zoning for the property.
This Service Plan was prepared by White and Associates Professional Corporation, 6860
South Yosemite Court, Suite 200, Englewood, Colorado 80112; telephone (303) 221-6300 with
the assistance of Stan Bernstein and Associates of Denver and TS&T Consulting Engineers of
Fort Collins.
II. PURPOSE OF AND NEED FOR THE PROPOSED DISTRICT
A. Purpose and Intent.
It is intended that the District will provide certain essential public-purpose facilities for
the use and benefit of all the anticipated owners of real property contained within the boundaries
of the District which are wholly located within Fort Collins. It is not the intent of the District to
provide ongoing services other than as specifically set forth in Section IV hereof. The District
acknowledges the need and its intent to cooperate with Fort Collins to serve and promote the
health, safety, prosperity, security and general welfare of its inhabitants. As evidence of such
cooperation and need to coordinate activities with Fort Collins, the proposed District shall obtain
a resolution approving this Service Plan from Fort Collins in the form to be attached hereto as
Exhibit A. Should the purposes of the District change materially from what is stated herein, it
shall be considered to be a material modification of this Service Plan which shall require advance
approval by Fort Collins. It is the District's intention to construct capital facilities, and where
possible, to convey those facilities to existing governments for operations and maintenance. In
this manner, Fort Collins can be is assured that property owners within the proposed District will
not pay for duplicated efforts of overlapping jurisdictions. The City will be able to collect
stormwater monthly operations and maintenance fees, as well as stormwater monthly capital and
new development fees within the District.
B. Need for District.
The City will provide neighborhood and community parks as presently contemplated by
the City. Except for these parks, there are currently no other entities in existence in the area of
the District which have the ability and/or desire to undertake the design, financing and
construction of improvements needed for the project. It is the petitioners' understanding that Fort
Collins does not consider it feasible or practicable for it to provide the necessary services and
facilities for the project depicted in Exhibit E hereof and described herein. Inasmuch as existing
entities are unable or unwilling to construct capital facilities, formation of the District is
necessary for the provision of public improvements needed for the project in the most economic
manner possible.
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C. General Powers.
The proposed District will have power and authority to provide the services and facilities
generally described in this Service Plan.
1. Specific Powers. The District shall have authority to construct, operate
and maintain the services and facilities described below. Necessary funding will be
provided by the issuance of general obligation bonds by the District as described in the
Financing Plan contained herein. The following general descriptions of the powers of the
District are intended to define the scope of activities which may be undertaken by the
District. Section IV below contains more detailed descriptions of the specific
improvements, design criteria and dedication requirements for these facilities.
a. Streets. The design, acquisition, installation and construction of street and
roadway improvements, including but not limited to curbs, gutters, culverts and
operation and maintenance of storm sewers and all drainage facilities, detention
ponds, retaining walls and appurtenances and entry monumentation, as well as
sidewalks, bridges, parking facilities, paving, lighting, grading, landscaping, snow
removal equipment, and other street improvements, together with all necessary,
incidental, and appurtenant facilities, land and easements, together with
extensions of and improvements to said facilities.
b. Parks and Recreation. The design, acquisition, installation, construction,
operation and maintenance of public park and recreation facilities or programs
including, but not limited to, swimming pools and spas, tennis courts, exercise
facilities, bike paths, hiking trails, pedestrian trails, picnic areas, skating areas and
facilities, common area landscaping and weed control, outdoor lighting of all
types, community events and other facilities, together with all necessary,
incidental and appurtenant facilities, land and easements, and all necessary
extensions of and improvements to said facilities or systems.
2. Miscellaneous Powers. The powers of the District will be exercised by
its board of directors to the extent necessary to provide the services contemplated in this
Service Plan. The foregoing improvements and services, along with all other activities
permitted by law, will be undertaken in accordance with, and pursuant to, the procedures
and conditions contained in the Special District Act contained in Title 32, C.R.S., other
applicable statutes, and this Service Plan, as any or all of the same may be amended from
time to time.
In addition to the powers enumerated above, the board of directors of the District
shall have authority to exercise all necessary and implied powers under Title 32, C.R.S. in the
reasonable discretion of the board of directors of the District.
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III. BOUNDARIES; POPULATION AND ASSESSED
VALUATION ESTIMATES
A. General.
The service area of the District shall include all real property within the boundaries of the
District, as more particularly depicted in the map contained in Exhibit C. A legal description of
the District's boundaries is attached as Exhibit B.
B. Changes in Boundaries.
The District shall obtain written approval from Fort Collins prior to seeking a change in
its boundaries. Changes may be approved by Fort Collins and shall not be considered to be a
material modification of this Service Plan if approved by Fort Collins by administrative action.
C. Population and Assessed Valuation Estimates.
An estimate of projected assessed valuation within the District is set forth in Exhibit G
which contains the Financing Plan for the District. Richard's Lake will consist of residential
development, and at buildout the population of the District is estimated to be 1,700 persons. The
1997 assessed valuation for all property within the boundaries of the proposed Richard's Lake
Metropolitan District was approximately $18,700.
IV. DESCRIPTION OF PROPOSED FACILITIES
This section describes the key facilities and improvements expected to be provided by the
District. The following general descriptions of improvements are preliminary only and will be
subject to modification and revision as engineering plans, financial factors and construction
scheduling and costs may require, and subject to the overall limitations on the powers of the
District set forth in Section II hereof. Improvements not specifically described herein shall be
permitted as long as they are generally contemplated in Section II hereof. Should the types of
improvements materially change from what is stated in Section II of this Service Plan, it shall be
considered a material modification of this Service Plan.
Exhibit E contains general layouts of the key proposed improvements. Exhibit F sets
forth the projected capital costs by phase for the District. Cost estimates for such improvements
are depicted in the Financing Plan, as shown in Exhibit G. The total estimated cost of
improvements is approximately $2,742,961, exclusive of inflation and contingencies. Fort
Collins shall not be responsible for assuming any of the costs of the improvements. All facilities
described herein will be designed and constructed according to the applicable standards of the
City of Fort Collins. All descriptions of the specific facilities and improvements to be
constructed, and their related costs, are estimates only and are subject to modification as
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engineering, development plans, economics, Fort Collins' requirements, and constructing
scheduling may require.
A. Street Improvements.
Street improvements include the local and collector streets shown in Exhibit E, together
with drainage improvements. After conveyance by the developer of the street rights-of-way or
appropriate easements to the District, the District is expected to construct street curbs, gutters,
culverts, drainage ditches, sidewalks, box culverts, tunnels, paving, lighting, landscaping and
other road, street and drainage facility improvements which the project will require, as well as
necessary traffic and safety protection devices and controls.
1. Roadway Infrastructure. All public streets and streets dedicated by plat
within the District will be maintained by Fort Collins after acceptance. This will include
all roadway infrastructure as it is completed and accepted by Fort Collins
2. Drainage Facilities. All storm drainage facilities outside the street row
will be owned, operated and maintained by the District thus eliminating any potential
burden on Fort Collins for these costs. The District will construct the storm sewer line
from the intersection of Morningstar Way and Somerset Drive to the east and south until
it connects with Morningstar Drive. Developers shall be responsible for the construction
of all other storm drainage facilities although the facilities will be turned over to and
operated by the District.
3. Cost Estimates. The estimated construction costs for the development of
the roadway system and drainage facilities for the project are shown on Exhibit F.
B. Park and Recreation Improvements; Landscaping.
The park and recreation improvements expected to be constructed and maintained within
the District include pocket parks, major street landscaping, a recreation center and trails
improvements. The District shall work in conjunction with the City as to the timing and
construction of the neighborhood park. The park and recreation improvements described in this
section are to be provided by the District without use of neighborhood or community park impact
fee revenue. The District acknowledges that dwelling units in the District must pay City impact
fees, including fees for the neighborhood park and community parks. The District will work with
the City to explore opportunities to locate a neighborhood park within the District and to
coordinate the design of the District's park and recreation facilities so they are compatible with
the design of the neighborhood park. The neighborhood park constructed in the District will be a
public park open to District and non-District residents.
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1. Parks. The park improvements anticipated to be constructed are primarily
"pocket parks" within development parcels and may consist of irrigated turf, hardscape,
walkways, shrubs, mulch beds, amenity features such as picnic tables, signage, etc., and
other uses consistent with neighborhood parks.
2. Recreation. Recreation improvements are depicted in Exhibit E
consisting of a community center, tennis courts, swimming pool and related amenities.
3. Trails. The trails are proposed to provide linkage between the major
development parcels and other major roadways or other features within the property or
immediately adjacent thereto. The trail system is anticipated to include a combination of
concrete walkways, gravel trails, necessary signage and identification markers and other
ancillary trail hardscape such as benches and tables.
4. Street Landscaping. The major streets are anticipated to have
landscaping along both sides and any medians. This landscaping may consist of required
fencing, identification markers, shrub and flower beds, mulch beds, irrigated and non-
irrigated turf and native grasses, subdivision identification markers, trees, and other
landscape features commonly associated with streetscape design.
5. Cost Estimates. The estimated construction costs for the development of
the park and recreation improvements are shown on Exhibit F.
C. Cost Estimate Summary.
The cost estimates for all improvements summarized in Exhibit F are based on quantities
taken from preliminary development plans and preliminary utility and drainage plans. The unit
prices, based on recent bids or contracts, were multiplied by the individual quantities. A 15%
contingency was added to the subtotal to arrive at the total cost estimates.
D. Construction Standards.
The District shall ensure that any proposed improvements set forth in this Section IV will
be designed and constructed solely in accordance with the standards and specifications set forth
by the entity to whom the facilities will be dedicated for operations and maintenance, including
the District. The District will obtain approval of civil engineering plans and a permit for
construction and installation of improvements from Fort Collins.
E. Dedication of Improvements.
The District shall dedicate or cause all of the public water and wastewater improvements,
all public streets and streets dedicated by plat and all public sidewalks as well as all rights-of-
way and easements necessary for access to these facilities to be conveyed to the entity
responsible for operations and maintenance upon completion of construction and installation. All
storm drainage facilities outside the public streets will be owned, operated and maintained by the
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District. Failure to comply with the dedication of improvements set forth in this section shall be
deemed to be a material modification of this Service Plan.
F. Ownership/Operation of Facilities by District.
Except for facilities and improvements described in this Section IV, the District shall not
be authorized to own or operate facilities to be provided pursuant to this Service Plan, other than
as necessary to permit the financing and construction thereof, except through approval by Fort
Collins of an amendment to this Service Plan. The District shall have authority to operate and
maintain the improvements described in this Section IV. Some of the improvements are
expected to be turned over to the City of Fort Collins, or a homeowners' association, if any, for
operations and maintenance. The park and recreation improvements, all landscaping
improvements, pocket parks and trail systems to be provided by the District will be retained by
the District and will be operated and maintained by the District either directly or through a
homeowner's association. The storm drainage facilities, including the five detention ponds, all
inflow and outflow sewers and storm inlets will be operated and maintained by the District. The
District may contract with homeowner associations for operation of the park and recreation
facilities. Other improvements not to be dedicated or accepted by other entities, but to be
constructed and owned by the District, include entry features, pocket parks, and trails located
outside of Fort Collins rights-of-way.
G. Services of District.
The District will require funds to plan and cause the facilities contemplated herein to be
completed. Such costs are expected to include reimbursement of organizational costs, legal,
engineering, accounting, bond issuance costs and compliance with state reporting and other
administrative requirements. The first year's operating budget is estimated to be $30,800. An
overall financing plan showing the anticipated operating costs, phasing of bond issues, and
related matters is attached as Exhibit G.
V. FINANCIAL PLAN
A. General Plan of Finance.
The total estimated cost of the facilities is approximately S3,155,000 in 1998 dollars. The
District's combined new money general obligation debt limitation ("debt limitation") will be
$4,000,000 to account for inflation, costs of issuance and other similar expenses. Increases in
debt necessary to accomplish a refunding, reissuance or restructuring of debt, and bonds payable
from sources other than ad valorem taxes, shall not count against the debt limitation. Any other
change in the debt limitation shall be considered a material modification of the Service Plan.
The debt limitation shall not be increased unless approved by Fort Collins and as permitted by
statute.
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It is currently anticipated that the District will issue general obligation bonds in amounts
sufficient to permit the District to construct needed facilities. Initial bond issues are estimated to
occur in 1999 in the approximate amount of$1,000,000, followed by issues in 2000 and 2002.
The initial series of bonds will be purchased by the developer. All bonds will be paid subject to
debt service mill levy caps discussed below. The maximum term for District Bonds, inclusive of
refundings shall not extend beyond 30 years from the date of fast issuance by the District. These
caps will remain in place in perpetuity thus protecting property owners from unreasonable debt
service mill levy increases and extended debt. The timing of issuance of bonds will be adjusted
from time to time to meet development requirements. All bonds will be issued in compliance
with applicable state law. Attached to this Service Plan as Exhibit G is a Financing Plan of the
District which shows how the proposed services and facilities may be financed and operated by
the District. The Financing Plan identifies the proposed debt issuance schedules of the District.
All bonds issued by the District will be payable from general ad valorem debt service
taxes to be imposed upon all taxable property within the District which may not exceed 25 mills,
subject to adjustments to take into account the impact of the Gallagher Amendment to the
Colorado Constitution.
In addition to the bonds described above ("Senior Bonds") the District shall have the
authority to issue subordinate general obligation bonds for any interest which accrues on the
Senior Bonds but which cannot be paid as a result of the debt service mill levy cap ("Subordinate
Bonds") in the event the development projections are not fully realized and the District is not
able in some years to pay all principal and interest. Interest will not compound on accrued but
unpaid 'interest. This feature will help protect property owners from changes in the pace of
development of the project which may have an impact on the ability of the District to pay bonds
from capped mill levies. In no event shall debt of the District extend beyond 30 years from the
date of the initial issuance of each series of bonds. This assures that the District will be free from
debt within a reasonable period of time.
The 25 mill debt service levy limit shall be subject to adjustment if the laws of the State
change with respect to the assessment of property for taxation purposes, the ratio for determining
assessed valuation changes, or other similar changes occur. In these events, the cap will be
automatically adjusted so that the tax liability of individual property owners neither increases nor
decreases as a result of any such changes thereby maintaining a constant level of tax receipts of
the District and overall tax payments from property owners.
The Financing Plan demonstrates one method that might be used by the District to
finance the cost of infrastructure. At the time bonds are proposed to be issued, alternative
financing plans may be employed and utilized by the District so long as the constraints of this
Service Plan have been met. Due to the support expected to be received from the developer, the
Financing Plan demonstrates that the cost of infrastructure described herein can be provided with
reasonable mill levies assuming reasonable increases in assessed valuation and assuming the rate
of build-out estimated in the Financing Plan. In no event will bondholders be entitled to
payments in excess of what the debt service mill levy cap will produce, thus permitting the
District to be viable in all circumstances.
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B. Operating Costs.
In addition to showing the anticipated bond issues of the District discussed in the
preceding section, the Financing Plan includes the proposed operating revenue derived from ad
valorem property taxes for the first budget year. Other operating costs will be assumed and paid
only as cash flow permits.
C. Other Financial Information.
Upon approval of this Service Plan, the District will continue to develop and refine cost
estimates contained herein and prepare for bond issues. All cost estimates will be inflated to
then-current dollars at the time of bond issuance and construction. All construction cost
estimates assume construction to applicable local, state or federal requirements.
In addition to ad valorem property taxes, and in order to offset the expenses of the
anticipated construction as well as operations and maintenance, the District will also rely upon
various other revenue sources authorized by law. These will include the power to assess fees,
rates, tolls, penalties, or charges as provided in § 32-1-1001(l), C.R.S., as amended from time to
time. The Financing Plan assumes various sources of revenue, including ad valorem property
taxes, specific ownership taxes, facilities fees, and user charges, together with interest earnings
on retained amounts.
The Financing Plan does not project any significant accumulation of fund balances which
might represent receipt of revenues in excess of expenditures under the TABOR Amendment. To
the extent annual district revenues exceed expenditures in this manner, the District will comply
with the provisions of TABOR and either refund the excess or obtain voter approval to retain
such amounts. Initial spending and revenue limits of the District, as well as mill levies, will be
established by elections which satisfy TABOR requirements.
The estimated costs of the facilities and improvements to be constructed and installed by
the District, including the costs of engineering services, legal services, administrative services,
initial proposed indebtedness, and other major expenses related to the facilities and
improvements to be constructed and installed, are set forth in Exhibit F of this Service Plan. The
maximum voted interest rate on bonds will be 18%. The proposed maximum underwriting
discount will be 5%. It is estimated that the general obligation bonds, when issued, will mature
not more than twenty (20) years from date of issuance, with the first maturity being not later than
three (3) years from the date of its issuance, as required by statute. The estimated costs of the
organization and initial operation of the District through December 31, 1998 including legal,
engineering, administrative and financial services, are expected to be approximately $100,000.
The District out of its initial revenue sources including bond issue proceeds will reimburse
organizational costs to the developer. The District is also expected to acquire completed
improvements from the developer with bond proceeds.
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D. Elections and Conditions on Exercise of Financial Powers.
The District may obtain authorization from its electorate at elections scheduled on legally
permitted dates for general obligation bonds and other matters summarized below.
VL GENERAL MATTERS
A. Elections.
Following approval of this Service Plan by Fort Collins, and after acceptance of the
organizational petition and issuance of orders from the District Court, elections on the questions
of organizing the District and approving bonded indebtedness and various matters described
herein will be scheduled. All elections will be conducted as provided in the Court orders, the
Uniform Election Code of 1992 (as substantially amended by House Bill 93-1255), and the
TABOR Amendment, and are currently planned for November 3, 1998, but may be held on any
legally permitted date. The election questions are expected to include whether to organize the
District, election of initial directors, and TABOR Amendment ballot issues and questions. The
ballot may deal with the following topics (in several questions, but not necessarily using the exact
divisions shown here):
1. Whether to organize the District;
2. Membership and terms of the initial board members;
3. Approval of new taxes;
4. Approval of maximum operational mill levies;
5. Approval of bond and other indebtedness limits;
6. Approval of an initial property tax revenue limit;
7. Approval of an initial total revenue limit;
8. Approval of an initial fiscal year spending limit; and
9_ Approval of a four-year delay in voting on ballot issues.
Future elections to comply with the TABOR Amendment are anticipated and may be held
as determined by the elected Board of Directors of the District.
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B. Modification of Service Plan.
The District shall obtain the prior approval of Fort Collins before making any material
modifications to this Service Plan. Material modifications shall include modifications of a basic
or essential nature including any additions to the types of services initially provided by the
District, change in debt limit, change in revenue type, or change in the debt service mill levy
limit. The examples above are only examples and are not an exclusive list of all actions which
may be identified as a material modification. Fort Collins approval shall not be required for
mechanical modifications to this Service Plan necessary for the execution of the Financing Plan
for public improvements previously outlined herein.
C. Resolution of Approval.
The proposed District agrees to incorporate the Fort Collins City Council's Resolution of
Approval, including any conditions on such approval, into the Service Plan presented to the
appropriate District Court. Such resolution shall be attached as Exhibit A.
Attached to the Resolution of Approval in Exhibit A, is an agreement ("Resolution of
Approval Agreement ) that the Board of Directors will enter into at their first organizational
meeting limiting the actions the District may take until this Service Plan is amended and/or an
agreement is entered into between Fort Collins and the District addressing the participation in
regional infrastructure and other issues. The District shall be bound by the limitations set forth in
the Resolution of Approval Agreement. A failure to execute the Resolution of Approval
Agreement will be considered a material modification of this Service Plan.
D. Disclosure.
The petitioners for organization of the District will make a good faith effort to assure that
the developers of the property located within the District provide adequate written notice to
purchasers of land in the District regarding taxes, charges, or assessments which may be imposed
in connection with the District. For purposes of this section, a good faith effort shall mean that
the directors of the District shall notify homebuilders as to the existence of the District, present
tax levy, average expected tax levy, maximum expected tax levy, and maximum allowed tax
levy, and shall request such homebuilders to provide such information to home purchasers.
VII. CONCLUSION
It is submitted that this Service Plan for the District, as required by § 32-1-203(2), C.R.S.,
has established that except for neighborhood and community parks, and trails connected with the
City trail system :
(a) There is sufficient existing and projected need for organized service in the area to
be serviced by the District;
11
(b) The existing service in the area to be served by the District is inadequate for
present and projected needs;
(c) The District is capable of providing economical and sufficient service to the area
within its proposed boundaries;
(d) The area to be included in the District does have, and will have, the financial
ability to discharge the proposed indebtedness on a reasonable basis;
(e) Adequate service is not, and will not be, available to the area through Fort Collins,
or other existing municipal or quasi-municipal corporations, including existing special districts,
within a reasonable time and on a comparable basis;
(f) The facility and service standards of the District are compatible with the facility
and service standards of Fort Collins within which the District are to be located and each
municipality which is an interested party under § 32-1-204(1), C.R.S.;
(g) The proposal is in substantial compliance with a master plan adopted pursuant to
§ 30-28-108, C.R.S.;
(h) The proposal is in compliance with any duly adopted county, regional, or state
long-range water quality management plan for the area; and
(i) The creation of the District is in the best interests of the area proposed to be
served.
Therefore, it is requested that the Fort Collins City Council, which has jurisdiction to
approve this Service Plan by virtue of §§ 32-1-201, C.R.S., et seq, as amended, adopt a
resolution which approves this Service Plan for the District as submitted.
Respectfully submitted,
WHITE AND ASSOCIATES
Professional Corporation
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By.
e
Counsel r
titioners
RLMD\S PLAMSAM 1529090398
0443.0003
12
EXHIBIT A
City Council Resolution of Approval
AGREEMENT CONCERNING CREATION OF
RICHARDS LAKE METROPOLITAN DISTRICT
THIS AGREEMENT is made and entered into this day of 1998,
by and between Richards Lake Metropolitan District, a quasi-municipal corporation of the State of
Colorado ("the District"), and the City of Fort Collins, a Colorado home rule municipality ("the
City").
WHEREAS, the District has previously submitted a "Service Plan for Richard's Lake
wletrovolitanDistrict" dated 1998("the Service Plan") to the Fort Collins City
Council("the Council") for its review and approval in accordance with C.R.S. Section 32-1-204.5;
and
WHEREAS,on September 15, 1998,the Council adopted Resolution 98-_approving the h.
Service Plan on the condition that the District enter into this Agreement with the City at its first
organizational meeting ("the Resolution"); and
WHEREAS, the City desires that the Service Plan be modified to include an obligation for
t c District to participate with the City in the planning and construction of off-site infrastructure
related to the development of the northeast area of the City, which off-site infrastructure shall
include, without limitation, transportation and stormw•ater facilities, ("the Tnfrastructure"); and
WHEREAS,the City and the District are not yet able to determine the nature of the District's
participation in the Infrastructure and desire to continue discussions in that regard leading to an
amendment of the Service Plan to address the Infrastructure ("the Amended Service Plan"); and
WHEREAS,the parties desire to enter into this Agreement,which suspends the power of the
District as hereinafter pro%ided until such tir ne as the Amended Service Plan has been approved by
_ Council,
NOW THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt and adequacy of which are hereby
acl,anowledoed, the parties hereto agree as follows:
1, Until such time as the Amended Service Plan has been reviewed and approved by the
Council (which approval shall be within the sole discretion of the Council), thereby
implementing the plans to be developed for the participation by the District in the planning,
design, financing and const-,action ofthe Infrastructure, the District agrees as follows:
A. That the statutory powers of the District and its rights under the Service Plan shall
be suspended entirely with tiie sole exception of the completion by the District of
such activities as are mandated by statute L-i connection with the following:budgets,
audits, the conduct of elections and other similar administrative matters; and
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13. That the District shall not issue any of the debt authorized to it in the November 3,
1998, election or any subsequent election.
2. If the Amended Service Plan is not so approved by the Council by June 1, 1999,the District
shall be dissolved without delay. In order to implement the foregoing; the District agrees :
that it shall initiate dissolution proceedings and shall seek not later than thirty(30)days after `I
June 1, 1999,an order from the Larimer County District Court dissolving the District. In the
event the District fails to so initiate such dissolution proceedings, this Agreement shall
constitute the designation of the City as the lawful agent and attorney-in-fact of the District
sufficient to permit the City to obtain such dissolution order on behalf of the District. The
District agrees that it shall cooperate in all respects in connection with such activities and
shall pay all costs incurred by the City, including reasonable attorney's fees, in connection
with obtaining such order of dissolution.
3. This Agreement shall be construed in accordance with the laws of d-1e State of Colorado, and
the City shall be entitled to enforce the terms of this Agreement by an action seek.ng specific
performance, including the entry of a writ of mandamus, to compel the District to perform
the action contemplated herein. The District further agrees to pay all costs incurred by the
City, including reasonable attorney's fees, in connection with enforcing the tcr_ns of this
Agreement.
.he District acknowledges and agrees that performance of this Agreement by the District is
in furtherance of the Couricil's expressed condition pursuant to which the Service Plan was
approved in the Resolution.
5. This Agreement shall terminate upon satisfaction of the conditions set forth in paragraph I
above, such satisfaction to be evidenced by receipt by the District of a letter from the For
Collins City Attorney stating that the City Council has approved the Amended Service Plan.
Thereafter, the District shall have furl power and author.R to implement the Amcndcd
Service Plan in the man_nor permitted by applicable law.
This Agreement shall be construed according to its fair m. ariirg and as if prep red'ov both
parties hereto,and shall be deemed to be and contain the entire understanding and agreement
between the parties hereto. There shall be deemed to be no other terms, conditions,
promises,understandings,statements or representations,express or implied,concerning this
Agreement unless set forth in writing and siencd by both of the parties hereto.
7. If any provision of this Agreement, or the application of such provision to any person,el;tity
or circumstance, shall be held invalid, the remainder of this Agreement, or the application
of such provisions to persons,entities or circumstances other that those in which it was held
invalid, shall not be affected.
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br.e-uj-tayb 1Ku ul :u2 M CI'FY PTTORNEYS OFFICE FP,X NO, 19702216327 P. 04
in the event either of the respective parties hereto shall default any of their covenants or
obligations herein provided and the party not involved commences legal or equitable action
against the defaulting party, the defaulting party expressly agrees to pay all of the non-
defaulting party's reasonable expenses in any such litigation,including a reasonable sum for
attorney's fees.
9. This Agreement shall be binding upon the parties hereto and their respective successors and
assigns.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as oft^.c date and
:'Dove written.
RICHARD'S LAKE i41ETROPOLITAN DISTRICT,
A Colorado Quasi-Municipal Corporation
By:
President
-`7TEST:
Secretary
CITY OF FORT COLLI`S
A Municipal Home Rule City
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
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RESOLUTION 98-
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CONDITIONALLY APPROVNG THE SERVICE PLAN FOR
RICHARDS LAKE METROPOLITAN DISTRICT
r ,
WIIEREAS, there has been presented to the Council of the City of Fort Collins ("the
Council")for its consideration in accordance with the provisions of Title 32, Article 1,Part 2 of the
Colorado Revised Statutes,as amended,the"Service Plan for Richards Lake Metropolitan District'
? , 1998 ("the Service Plan")- and
WHEREAS,pursuant to the provisions of Title 32,Article 1,Part 2 of the Colorado Revised
Statutes, as amended, the Council held a public hearing on March 17, 1998, and continued to
September 15, 1998, regarding consideration of the approval of the SeMce Plan; and
WHEREAS, notice of this hearing was duly published in tl,.e Fort Collins Coloradoan, a
newspaper of general circulation within the City of Fort Collins, on February 2T, 1998, as required
by law, and such notice was sent to the petitioners seeking approval of the Service Plan for the
proposed Richard's Lake Metropolitan District("the District'), and to the governing body of any
rr.'stir_R municipality located within a radius of three (3) miles of the District and to any special
s ict which has levied an ad valorem tax within the next preceding tax vcar and which is also
located within a radius of three (3) miles of the District; and
WHEREAS, said notice of hearing was also sent to the Colorado Division oC Local
Government and to all property owners within the boundaries of the District and to the owners of
real property located within three (3) miles of the boumdaries of the District; and i+
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WIIEREAS, the Council has considered the Scr—iee Plan and all of the testimony and
evidence presented at the Hearing; and
REAS, it appears to the Council that t,": S:rvicc Plan should be approved on the
condition that the"Agrecmcnt Concerning Creation of Richards Lake Metropolitan District"wliich
is attached hereto as Exhibit A and incorporated herein by reference ("the Agrccmont°) is entered
into by the District at its first organizational n:eetiug
NOW, THFREFORF, BE IT RESOLVED BY •£IIE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Council hereby determines that all of the requirements of Title 32,
Article 1, Part 2 of the Colorado Revised Statutes, as amended, relating to the filing of the Service
M for the District have been fulfilled and that the notice of the hearing was given in the time and
manner required by law.
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?-.3-1998 THU 01 :32 PM CITY ATTORNEYS OFFICE - .X NO. 19702216327 P. 06
Section 2. That the Council hereby finds and determines that:
A. There is sufficient existing projected need for organized services in the area to be
served by the District;
B. The existing service in the area to be served by the District is inadequate for present ; y.
and projected needs;
C. The District is capable of providing economical and sufficient service to the area
within its boundaries; and
D. The area to be included in the District has, or will have, the financial ability to
discharge the proposed indebtedness of the District on a reasonab''c basis. r
Section 3. That the Council's approval in this Resolutioin of the Service Plan is expressly
conditioned upon the Agreement being entered into with the City by the District at the District's first '
organizational meeting, The Agreement restricts the action the District may undertake until an
amendment to the Service Plan, as contemplated in the Agreement, is approved by the Council, in
�e exercise of its sole discretion, by the adoption of a resolution approving the amerdments to the
Service Plan. If such resolution is trot adopted by the Council on or bei'ore June 1, 1999, then the
Council's approval in this Resolution of the Service ?!an shall be declined null and void and the
District shall thereafter be dissolved pursuant to Title 32, Article 1, Part 7 of the Colorado Revised
Statutes, as amended, in accordance with the terms of the Agreement.
Section 4. That notwithstanding the provisions in Section 3 above to the contrary,the City
Manager is hereby authorized to execute on behalf of the City such future addenda to the Agrcemcm
as he deems to be in the best interest of the City and necessary in order to extend the June 1, 1999,
deadline for the Council's approval of the aniendmcrts to the Service Plan as required by the
Agreement. However, in so amending the Agree- en', tI:e City Manager shall not extend such
deadline beyond December 31, 1999.
Passed and adopted at a rceular meeting of the C'ty Council geld this I5th day of September
A.D., 1998.
Mayor
ATTEST:
City Clerk
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EXHIBIT B
Legal Description
(Legal Description)
RICHr'1RDS LSE PARCEL
P. TPACT OF LAND SITUATE Iti TFiE SOUTH. 1/2 Or SECTION 301
TOWNSHIP 8 NORTH, RANGE 6B WEST OF THE 6TH PP..INCIPAL :iERIDIA:{f
CIi'Y OF FORT COLLINS, C=iTY OF LA.RII`U R, STATE OF COLOIRADOr
M-11CH, COYSIDERING THE SOUTH LINE OF THE SOUTHEAST 1/4 OF SAID . `
SPCTIO?I 30 AS BRA.RING So�'i"�? 89 DEGREES 36 MINUTES 43 SECONDS
WZ5'-, R.ND NI'rH ALL BEARINGS CONTAINED A±RE1.11 RELATIVE THERETO,
LZGT_NS AT THE SOUTH 1/4 CrPIIZR OF SAID SErTION 30 AND RUNS
TIi1:?ICL V-7ST 246. 90 FZET;
113ILNC:E NORTH 53 DEGRL• E5 15 )111TUTES 06 SECONDS WEST 112 . 02 FEET; -
TFZNCE NORTH 403 . 07 FEE': TO THE BOUNDARY OF RICRARDS LANE;
T111-NCE AIANG SAID BOGNDARY CF RIC':rMS LAKE 1,ORTH 41 ]DEGREES 24
MINUTES EAST, 300 FEET RIND AGAIN NORTH 06 DEGREES 38 MINUTES
WEST 300 . 00 FEET AND AGAIN ?,'ORT11 45 DEGREES 30 MINUTES WEST
loco . Cc FEET;
'EL:tiCE NC11T.1 21 DEGREES 00 HINUTES EAST 259 . 05 FEET;
T![:-2= ALC`,G THE ARC OF A ?ION-TANGENT 480 . 00 FOOT RADIUS CURVE
;TC rii:; LE-i A DISTP-NCE, 0: 751. 61 7ZE;', TF'.':. LONG CVORD OF WHICH
IISi1_ZII GCRTi: 53 DEGR=S 21 :I:?:UTES :1 SECONDS ZLST 677 . _S FEET,
=11 ;ICR—"! 40 DEGR 1 'II?TUTUS EAST 365 . 00 FEET;
:ii ;CE EA 7. 15 . 00 FEZ=;
i".: iCS .' TZ7:-i 69 D CZ'S 50 ZTN� :TCS 20 677=2:)S EB.ST 2445 . 05 F ?:
P:_-1._ SO -;.S: 1/4 of SAID
S:i TH 00 D%GREtS C5 !i;ii' '.:S 13 S E C.iF, i Z T 135 . 00 FEr" ,
fIN ^1ES 20 SECO:iDS ZAS: 200. 00 FEL"i
0 Ii'.E EIS: LI?it OF SAID SCUIHFJ�Si 1/ 4 ;
CE LONG szl'= EAST LINZI SOUTH 00 D EGR;,ES C6 HINL^TES 13
:327C0ti05 WEST 2488 . 25 FEr:T .J TH.E SOU'1'HZA.ST CO LN ..R OF SAID
ST-CTION 20 ;
1:IL'*iC� A.LGNG THE SO!'TH LI. OF SAID SUU"_EIZAST 1/4 , SOUTH 89
DIEOPEES 56 HI?iUTES 43 SECONDS WEST 2641 . 06 FELT TO T1IE POINT OF
DEGIZIN-71110 , COL^.i'TY C 11L.T_i �, STIN 0: =40RA00.
EXHIBIT C
Boundary Map
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EXHIBIT D
Statutory Contents of Service Plan
1. A description of the proposed services;
2. A financial plan showing how the proposed services are to be financed;
3. A preliminary engineering or architectural survey showing how the
proposed services are to be provided;
4. A map of the district's boundaries and an estimate of the population and
valuation for assessment of the district;
5. 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 district is compatible with facility and service standards of Fort Collins and of special
districts which are interested parties pursuant to §32-1-204(1), C.R.S.;
6. 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 district;
7. A description of any arrangement or proposed agreement with any
political subdivision for the performance of any services between the district and such
other political subdivision;
8. Information satisfactory to establish that each of the following criteria as
set forth in §32-1-203, C.R.S.,has been met:
(a) That there is sufficient existing and projected need for organized
service in the area to be serviced by the district;
(b) That the existing service in the area to be served by the district is
inadequate for the present and projected needs;
(c) That the district is capable of providing economical and sufficient
service to the area within their proposed boundaries;
(d) That the area included in the district has, or will have, the financial
ability to discharge the proposed indebtedness on a reasonable basis;
(e) That adequate service is not, or will not be available to the area
through Port Collins or other existing municipal or quasi-municipal corporations,
including existing special districts, within a reasonable time and on a comparable
basis;
(1) That the facility and service standards of the district is compatible
with the facility and service standards of Port Collins within which the district is
to be located and each interested party under §32-1-204(1), C.R.S.;
(g) The proposal is in substantial compliance with any master plan
adopted pursuant to §32-28-106, C.R.S.;
(h) That the proposal is in compliance with any duly adopted city,
county, regional, or state long-range water quality management plan for the area;
and
(i) That the organization of the service district will be in the best
interests of the area proposed to be served.
2
EXHIBIT E
Facilities Diagram
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EXHIBIT F
Estimated Capital Costs
TST, INC.
Consulting Engineers ESTIMATED CONSTRUCTION COST
Client: Art Kleinstein Job No. 10-867-000 Date: 2/11/98
Project: Richard's Lake Metro District By: D.B.L.
No. Item Quantity Units Unit Cost Total Comments
STORM DRAINAGE FACILITIES
1. 18" RCP 1,757 L.F. $23.70 $41,641
2. 24"RCP 120 L.F. $30.00 S3,600
3. 24"ADS 1.025 L.F. $25.15 S25,779
4. 30"RCP 30 L.F. S36.20 $1,086
5. 36" RCP 2,570 L.F. $43.75 $112,438
6 42"RCP 370 L.F. S52.30 $19,351
7. 43x68 ERCP 284 L.F. S117.50 $33,370
S. 24"ADS FES 2 EA. $210.00 $420
9. 36"RCP FES 1 EA. $625.00 $625
10. 43x68 ERCP FES I EA. $700.00 $700
11. 4'DIA:VI. M.K 8 EA. $1,070.00 $8,560
12. TDIAI4M.H. 11 EA. $1,445.00 $15,895 1
13. 6'DIAIMM.H. 2 EA. $2,100.00 S4,200
14. 5'TYPE"R" INLET 8 EA. 52,230.00 S 17,840
15. 10'TYPE "R" LNLET 2 EA. I S3,260.00 $6,520
16. Detention Pond Outlet Structure 2 EA. 35.000.00 S 10.000
17. DETENTION POND GRADING 195.421 C.Y. 34.25 S830,539 Tract A&B ?on,is
13. DETENTION POND LANTDSCAPING I L.S. $105.500.00 $IOSS00 Tract A& B?ends j
19. CK �ti�L LtLoROVE�IENTS %70 1 L.F 1 `52.50 $1.b
Subtotal 31,142.738
EROSION CONTROL
I. CLASS 9 RIPRAP 5 C.Y $35.00 S175
2 CLASS 12 RIPRAP 17 C.Y. $45.00 $765
3. GRAVEL INLET FILTER 10 EA. 5230.00 S2,300
4. SILT FENCE 11,925 L.F. S2.00 523,850
5. STRAW BALE CHECK DA,L1 5 EA. S50.00 $250
6. GRAVEL OUTLET PIPE FILTER 2 EA. S150.00 S300
7. RESEED&MULCH 25 01 AC. 3650.00 S16.250
8. CONSTRUCTED WETLANDS 2.251 AC, S2,000.00 54,500
Subtotal S48,390
MORNINGSTAR DRIVE (Collector Street)
L ASPHALT 46,460 SYI $1.50 $69,690
2. CLASS 6 BASE COURSE 3,442 C.Y. $16.50 $56,793
3. 6" VERTICAL C&G 6,060 L.F. S7.00 $42,420
4. SIDEWALK 30,300 S.F. $2.50 $75,750
5. HANDICAPPED RAMP 28 EA. S800.00 $22,400
6. EARTHWORK 26,290 C.Y. $2.50 $65,725
7. LANDSCAPING 1 L.S. $68,580.00 S68,580
Subtotal $401,358
MORNINGSTAR WAY (Local Street)
L ASPHALT 13,433 SYI $1.50 $20,150
2 CLASS 6 BASE COURSE 995 C.Y. $16.50 $16,418
3. 6" VERTICALC&G 3,100 L.F. $7.00 S21,700
4. SIDEWALK 13,950 S.F. S2.50 $34,375
5. HANDICAPPED RAMP 8 EA. S800.00 S6,400
6. EARTHWORK 10,322 C.Y 32.50 S25,805
7. LANDSCAPING 1 L.S. S32,975.00 S32,975
Subtotal S158,322
SOMERSET DRIVE (Local Street)
1. ASPHALT 6,933 SYI S1.50 $10,400
2. CLASS 6 BASE COURSE 514 C.Y. S 16.50 S8,481
3. 6" VERTICALC&G 1,600 L.F. $7.00 S11,200
4. SIDEWALK 7,200 S.F. S2.50 $18,000
5. HANDICAPPED RAMP 4 EA. S800.00 S3,200
6. EARTHWORK 17,845 C.Y S2.50 S44,613
7. LANDSCAPING 1 L.S. S14,260.00 S14,260
Subtotal S110,1.53
RECREATION CENTER
1. Chan¢ut¢RocnuCommuruty Center _.000 S.c. S 125A0 S_50 000
POOL L.S K I40.Qti0 n0 S I4i.i00
PA.2<INGL(T I L.S 550.000.00 K5).0!)
4 BASKETBALL COT.-RT E a K 15.000 1)0
L. ISCO(.RT .i EA. S=1.000.00 S4_.O10
6, SOCCER GOAI EA. S1.000.00 K_.000
7. BASEBALL BACKSTOP I EA. K2.500.00 K2.500
8, PLAY STRUCTURE 1 EA. S 15.000.00 K 15.000
9. SAND VOLLEYBALL COURT EA. S4,000.00 $8,000
10. SHELTER 1 EA. $10,000.00 S 10,000
11. 12'PEDESTRL4,Ni TRAIL 8,000 S.F. $1.50 S 12,000
12. 5'CONCRETE TRAIL 4,000 S.F. $2.80 S11,200
13. aR.IGATION PUMP STATION 1 L.S. $58,000.00 $58,000
14. LANDSCAPING 1 L.S. S166,300.00 $166,300
Subtotal S782,000
CONSTRUCTION COST SUBTOTAL S2,742,961
CONTINGENCY (15%) S411,444.21
CONSTRUCTION COST TOTAL S3,154,406
2
TST, INC.
Consulting Engineers ESTIMATED ANNUAL O &M COST
Client: Art Kleinstein Job No. 10-867-000 Date: 2/16/98
Project: Richard's Lake Metro District By: D.B.L.
No. Item Quantity Units Unit Cost Total Comments
STREETS(Morningstar Dr.,Morningstar Way,Somerset Dr.)
I LANDSCAPED PARKWAY 1.621 AC. I S1,000.00 ,860
Subtotal S4,360
STORM DRAINAGE FACII.PTIES
1. DETENTION POND LANDSCAPNG 9.65 S1,800.00 17,370 Tracts A,B,C.1- &L
2. POND OUTLET STRUCTURES 5 EA. 31,000.00 S5,000 Tracts A B.C.H,&L
3. INLETS 30 EA. S150.00 S4,500
4. STORM SEWER 9,710 L.F. S0.50 U 955
Subtotal 531,725
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O& M COST SUBTOTAL S36,585
CONTINGENCY(15%) S5,488
O& M COST TOTAL S42,073
1
EXHIBIT G
Financing Plan
FEB 13 19B 02:30PN STAN BERNSTEIN&ASSOC
P.2
Stan Bernstein and Associates, Inc.
Financial Planners and Consultants
For Local Governments, Municipal Bond Underwriters, and Real Estate Developers
February 13, 1998
Mr. Art Kleinstein
Wintergreen Homes
305 Madison Street
Denver, Colorado 80206
Mr. Scott Price
Stonebridge Properties, LLC
90 Madison Street, Suite 702
Denver, Colorado 80206
Dear Art and Scott:
In accordance with your request Stan Bernstein and Associates, Inc.
has assembled the following Cash Flow Forecasts (the "Financing
Plan" ) for the proposed Richards Lake Metropolitan District (the
"District" ) . The Financing Plan was assembled by Stan Bernstein
based upon assumptions provided by others, and includes forecasts
of ( i) the estimated residential buildout schedule (including
related market values ) of property expected to be developed within
the District ' s boundaries (Schedule 1 ) ; (ii) the District ' s
operating revenues and expenditures (Exhibit I - General Fund) ;
( III ) the District ' s ability to pay the annual debt service on its
proposed $2, 830, 000 of Limited General Obligation Bond Issues
(Exhibit II - Debt Service Fund) ; and (iv) the District' s ability
to provide capital financing for its proposed road, drainage, and
recreation related infrastructure costs (Exhibit III - Capital
Projects Fund) . The Financing Plan is presented in current, 1998,
uninflated dollars .
RESIDENTIAL BUILDOUT AND RELATED ASSESSED VALUATION AND MILL LEVY.
Schedule 1 (pages 7 and 8) indicates that the primary land
developers of land within the District (the "Developers" )
anticipate selling approximately 682 lots during the next seven
years and expect these lots to be fully improved and built upon by
December 31, 2005 . The Developers expect at full-buildout that the
uninflated market value of these 682 residences will be
approximately $116 million based upon an average uninflated market
value per residence of approximately $170, 500.
Ignoring the impacts of inflation, and based upon a 9.74%
residential assessment rate, the District 's assessed valuation at
full-buildout is forecasted to be approximately $11. 3 million.
707 Seventeenth Street,Suite 2900 Denver, Colorado 80202 (303) 291-0495
Telecopier: (303) 291-0625 e-mail: bernstel@ix.netcom.com
2606 Davos Trail Vail, Colorado 81637
FEB 13 '9e 02:30PM STAN BERNSTEIN&ASSOC P 3
Mr. Art Rleinstein
Mr. Scott Price
February 13, 1998, Page 2
Beginning for tax collection year 2001, it is assumed that the
District will certify an annual combined mill levy of 35. 00. Ten
mills will be used to fund the District's administrative,
landscaping and drainage operating and maintenance related
expenses. Twenty-five mills will be used to pay (i)the annual debt
service requirements related to the District 's Series 1999, Series
2000, and Series 2002 Limited (i.e. limited to 25.00 mills) General
Obligation Bonds in total amount of approximately $2, 830, 000, and
(ii) accrued, but unpaid, interest on the Limited General
Obligation Bonds in approximate amount of $725, 000 (i.e. , this
represents the unpaid interest on the District's Limited General
Obligation Bonds from 1999 through 2005 before the District' s 25 . 00
debt service mill levy generates sufficient cash to make interest
payments on a current basis) .
The financial impacts associated with the District's 35. 00 mill
levy to the owner of a home valued at $170,500 is calculated to be
approximately $581 . 00 annually or approximately $49. 00 per month
(i.e. , approximately $32 . 00 per month on an "after tax basis"
assuming a combined federal and state income tax bracket of 35%) .
THE DISTRICT'S ABILITY TO FUND ITS OPERATING EXPENSES .
The District' s ability to fund its operating expenses is presented
on Exhibit I - General Fund Cash Flow Forecasts, pages 1 and 2 .
Exhibit I indicates that the property taxes generated from a ten
mill levy, combined with cash transfers from the District ' s Series
1999 and Series 2000 Limited General Obligation Bond Issues which
will be used to defray operating costs during the construction
period of the District, are forecasted to be sufficient to fund
administrative, parkway landscaping, storm drainage maintenance,
and miscellaneous other expenses during the analysis period.
Ending General Fund Balances include ample reserves to meet the 3%
Emergency Fund requirements pursuant to TABOR.
THE DISTRICT'S ABILITY TO FUND ITS DEBT SERVICE REQUIREMENTS .
The District 's ability to fund its operating expenses is presented
on Exhibit II- Debt Service Fund Cash Flow Forecasts, pages 3 and
4 . Exhibit II indicates that beginning for tax collection year
2006, when full-buildout is expected to occur, the property taxes
generated from a 25 . 00 mill levy are forecasted to be sufficient
to pay the annual debt service requirements on the proposed Limited
General Obligation Bonds (the "Bonds" ) . Prior to the year 2006,
only a portion of the annual debt service requirements are
forecasted to be paid and it is assumed that the unpaid balances,
as set forth cumulatively on the bottom of Exhibit II, will be
ultimately paid to the original purchasers of the District's
Limited General Obligation Bonds after all of the Bonds have been
redeemed.
FES 13 '98 02:31PM STAN BERNSTEIN&ASSOC P 4
Mr. Art Kleinstein
Mr. Scott Price
February 13, 1998, Page 3
THE DISTRICT'S ABILITY TO FUND ITS DEBT SERVICE REQUIREMENTS
(continued) .
It is assumed that the District will sell its Bonds to the
Developers, and that the Bonds will mature serially over a twenty
year period and bear interest coupons averaging 7. 00%. It is
assumed that the Series 1999 and Series 2000 Bonds will be issued
on January 1 of those year, in amount of $965, 000 each year, and
be used to pay for roadways, drainage, and landscape improvements.
It is assumed that the Series 2002 Bonds will be issued on January
1 2002 and be used to pay for the Recreation Center and related
landscaping and equipment costs . The Bonds are expected to be
issued with a general obligation property tax pledge which will be
limited to an annual debt service mill levy of 25. 00 mills, thereby
offering residents within the District's boundaries protection
against increases in their property taxes.
THE DISTRICT'S CAPITAL IMPROVEMENT/INFRASTRUCTURE FUNDING PRCGRAM.
The District ' s ability to fund its capital improvement and
infrastructure is presented on Exhibit III - Capital Projects Fund
Cash Flow Forecasts, pages 5 and 6 . Exhibit III indicates that the
District expects to fund $2, 830, 000 of capital improvements during
the next five years from the issuance of its Limited General
Obligation Bonds .
LIMITED FACTORS .
The scope of Stan Bernstein and Associates, Inc. engagement was
limited to assembling financial information based on assumptions
provided by others ( i.e. , the Developers regarding buildout and
market values, and TST, Consulting Engineers, regarding capital and
operating costs ) . Stan Bernstein and Associates, Inc. has not
independently evaluated, audited, examined, reviewed, or compiled
the information or the assumptions presented in the Financing Plan
and, consequently, disclaims any opinion with respect to the
achievability of the results contained in the Financing Plan or
the underlying assumptions. Furthermore, because of the inherent
nature of financial forecasts, there will usually be differences
between forecasted amounts and actual results because events and
circumstances frequently do not occur as expected and those
differences may be material.
I will be happy to meet with you to discuss this letter and the
accompanying Financial Plan with you in greater detail.
Ver truly yours,
Stan 13 n tein an Associates, Inc.
FEB 13 '98 02:32PM STAN BERNSTEIN&ASSCC P S
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Option A and Option B of
Resolution 98- 133 were also
considered and are on file in
the City Clerk' s Office