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HomeMy WebLinkAboutR23-066 Cordillera Metropolitan District - Establishing the Cordillera Wildlife Fund DocuSign Envelope ID:2EC6710E-7C12-4998-A2D5-A9E5CD44AAB6 Resolution No. 2023-066 RESOLUTION OF THE BOARD OF DIRECTORS OF CORDILLERA METROPOLITAN DISTRICT A RESOLUTION APPLYING THE WILDLIFE TR UST FUND CORPUS TO FUND CRITICAL WILDFIRE MITIGATION IN THE DISTRICT AND ESTABLISHING THE CORDILLERA WILDLIFE FUND A. Cordillera Metropolitan District (the "District") is a quasi-municipal corporation and political subdivision of the State of Colorado, organized pursuant to the Special District Act, Sections 32-1-101 et seq., C.R.S. The District spans and serves an approximately 7,000 acre residential community known as "Cordillera" in Eagle County, which includes ample open space that supports wildlife habitat and wildlife corridors. Pursuant to Section 32-1-1001(l)(h), C.R.S., the Board of Directors of the District (the "Board") is empowered with the management, control, and supervision of all business and affairs of the District. B. The Consolidated Wildlife Protection Plan dated October 31,2007, as endorsed by the District, the Cordillera Property Owners Association, Inc. (the "Association"), the Club at Cordillera, the Colorado Division of Wildlife (now known as and referred to herein as "Colorado Parks and Wildlife"), and Eagle County, is the document that governs wildlife protection in all of the Cordillera Planned Unit Developments (the "Consolidated Wildlife Plan"). The Consolidated Wildlife Plan represents the consolidation of five prior wildlife agreements (the "Prior Agreements") into a single plan..' C. As provided in several of the Prior Agreements and as referenced in the Consolidated Wildlife Plan, the developer of Cordillera established a wildlife trust fund (the 1 "Wildlife Trust Fund") initially funded by the developer in an amount estimated between$50,000 ... and$77,000.2 The interest earned on the corpus of the Wildlife Trust Fund was to be used to fund t j the enhancement of undeveloped portions of undisturbed elk winter range via methods including fertilization,burning,and shrub manipulation,and on authorized wildlife enhancement projects on and around Cordillera properties south of I-70, with disbursement of funds to be overseen by the Cordillera Wildlife Committee, as further described herein. D. No copy of a trust document or agreement establishing the Wildlife Trust Fund apparently exists. As listed in the Consolidated Wildlife Plan,the Prior Agreements include:(1)Original 1991 Divide and Ranch;(2) Bearden 1996;(3)The Territories at Cordillera Wildlife Mitigation Agreement dated August 1, 1997,and recorded in the Office of the Eagle County Clerk and Recorder on September 11, 1997, at Reception Number 632884 (the "Territories Plan");(4)Amendment to the Wildlife Mitigation and Enhancement Plan for Cordillera's Mountain Tract, Eagle County,Colorado,dated July 10, 1999,and recorded in the Office of the Eagle County Clerk and Recorder on August 5, 1999 at Reception Number 704765; and (5) Amendment to Cordillera's Wildlife Mitigation and Enhancement Plan for Planning Parcel 0, Eagle County, Colorado, resulting from the density shift from Planning Parcel 0 to Planning Parcel U-1, dated January 3, 2000, and recorded in the Office of the Eagle County Clerk and Recorder on April 14 2000, at Reception Number 727259. Although not referenced in the Consolidated Plan, that certain Wildlife Mitigation Agreement for the Mountain Tract dated August 31, 1998,and recorded in the Office of the Eagle County Clerk and Recorder on May 28,1999,at Reception Number 697723 (the"Mountain Tract Plan")is the Prior Agreement amended by the document referenced in(4)above. 2 Pursuant to the Territories Plan and the Mountain Tract Plan. Eagle County, Co 202315269 Regina O'Brien 11/09/2023 Pgs: 6 08:53:03 AM REC: $0.00 28 DOC: $0.00 DocuSign Envelope ID:2EC6710E-7C12-4998-A2D5-A9E5CD44AAB6 E. The District's audits indicate that for nearly twenty years, the Wildlife Trust Fund has been a District fund and that investment earnings are available for projects at the discretion of the District's wildlife mitigation committee. The District's audits further provide that "the [Wildlife Trust Fund] is used to account for resources legally held in trust for use by the District for projects related solely to mitigating impacts on wildlife within the District;" that "all investment earnings are available to be used for such projects at the discretion of the District's wildlife mitigation committee;"and that"the trust agreement requires preservation of the principal balance of approximately $170,700." As such, the Wildlife Trust Fund is held in trust by the District for use by the District as the sole beneficiary. F. The District's financial records reflect that contributions by the District resulted in a substantial increase in the Wildlife Trust Fund's principal as between the initial funding of the Wildlife Trust Fund by the developer and the principal stated in the District's audits.The District's 2021 audit3 reflects a balance of $250,880 in the Wildlife Trust Fund, which has grown to $250,991 as of the date hereof. G. Historically, the Cordillera Wildlife Committee, also called Cordillera Habitat Enhancement for Wildlife or "CHEW," has been a committee of the Association with representation from Colorado Parks and Wildlife (even though the District's audits state it is a District committee). Although in the past CHEW has made recommendations with respect to wildlife habitat enhancement projects, the use of Wildlife Trust Funds must be authorized by the District given that funded projects occur on and affect District property over which the District retains all decision-making authority, and the Wildlife Trust Fund is a District account supported by considerable District funding. H. For over nineteen years, no interest income from the Wildlife Trust Fund has been expended for authorized wildlife enhancement projects. Instead, the District has funded wildlife enhancement and wildfire mitigation projects through its general fund. This has allowed the Wildlife Trust Fund to grow,all while enhancing wildlife habitat and improving the fire-readiness and safety of Cordillera to the benefit of the residents and taxpayers of Cordillera,the Association, Colorado Parks and Wildlife, and the County. I. At present, there is a critical need to mitigate wildfire risk throughout Cordillera, which mitigation also will benefit and enhance Cordillera's wildlife habitats. The District desires to work with Colorado Parks and Wildlife and Eagle Valley Wildland and to secure up to 100%matched grant funds for wildfire mitigation work (as further described herein, the "Wildfire Mitigation Project").If the District can use moneys in the Wildlife Trust Fund for the Wildfire Mitigation Project, the District has the opportunity to maximize project funding and impact, resulting in considerable benefit to the entire Cordillera community. J. Accordingly,the Board now desires to deplete the Wildlife Trust Fund and to use the proceeds for the Wildfire Mitigation Project. In connection therewith, the Board desires to establish 3 The District's 2021 audit is the most recent District audit as of the date of adoption of this Resolution by the Board. 29 DocuSign Envelope ID:2EC6710E-7C12-4998-A2D5-A9E5CD44AAB6 and fund a new"Cordillera Wildlife Fund"to support authorized wildlife enhancement projects on and around Cordillera properties south of I-70 for the benefit of Cordillera. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CORDILLERA METROPOLITAN DISTRICT AS FOLLOWS: 1. Use of Wildlife Trust Fund.The Board hereby determines that there shall be no further or continuing conditions or restrictions on the use of the Wildlife Trust Fund corpus.Accordingly,all funds held in the Wildlife Trust Fund may and shall be used by the District to fund the Wildfire Mitigation Project. 2. Consent to Use of Wildlife Trust Fund.By signature below,the Association,Colorado Parks and Wildlife,and Eagle County consent to the application of the Wildlife Trust Fund corpus to the Wildfire Mitigation Project. 3. Wildfire Mitigation Project. The Wildfire Mitigation Project shall include the following:Fuel breaks#5,#9 and#30 located throughout the Cordillera community. These fuel break numbers represent specific areas that are part of the District's five-year fire mitigation plan. The purpose of these fuel breaks is to create a fuel reduction and improve the surrounding wildlife habitat by restoring areas back to open grass lands for grazing for wildlife. These areas chosen are targeted areas that will give firefighters a tactical advantage in the event of a wildfire. The District will apply the Wildlife Trust Fund balance in conjunction with Eagle Valley Wildland South-Central Avon Fuels Reduction Project grant funds. The District's funding contribution will be matched up to 100%. Colorado Parks and Wildlife agrees with the use of funds for the Wildfire Mitigation Project. 4. Establishment of Cordillera Wildlife Fund. The Board hereby establishes the "Cordillera Wildlife Fund"(the"Fund").The Fund shall be a separate fund held and administered by the District within its general fund.The purpose of the Fund shall be to support authorized wildlife enhancement projects on and around Cordillera properties south of I-70, for the benefit of Cordillera. The District will work with Colorado Parks and Wildlife to identify and accomplish projects that are supported by the Fund or any portion thereof. a. Appropriations. The Board hereby appropriates $_50,000 _ to the Fund for fiscal year 2023.The District desires to fund the Fund annually.Each year,in the context of its annual budget preparation and adoption process, the Board agrees to determine whether and in what amount moneys are appropriated to the Fund; provided, however, that the District does not intend hereby to create a multiple-fiscal year direct or indirect debt or other financial obligation whatsoever.Any and all funding of the Fund is and shall be subject to annual appropriation. b. Committees.The Board in its discretion may establish from time to time one or more committees to advise and make recommendations to the Board concerning use of the Fund. Any such committee shall be an advisory body and shall not have authority to expend District funds, make decisions on behalf of the District, or enter into contracts in the District's name. 30 DocuSign Envelope ID:2EC6710E-7C12-4998-A2D5-A9E5CD44AAB6 5. No Effect on Consolidated Wildlife Plan. Nothing in this Resolution shall affect the provisions of the Consolidated Wildlife Plan, any PUD or other land use document governing Cordillera, except as is necessary to accomplish the purposes of this Resolution. 6. Actions to Effectuate Resolution.The District's accountants and legal counsel are authorized and directed to take all actions necessary and appropriate to effectuate this Resolution. All actions not inconsistent with the provisions of this Resolution heretofore taken by the members of the Board, the District's accountant, the District's legal counsel, and the officers, agents, and employees of the District and directed toward effectuating the purposes stated herein are hereby ratified,approved, and confirmed. 7. Repealer. All prior acts, orders, or resolutions, or parts thereof, by the District in conflict with this Resolution are hereby repealed, except that this repealer shall not be construed to revive any act, order, or resolution, or part thereof, heretofore repealed. 8. Effective Date. This Resolution shall take effect following its adoption by the Board when all consents referenced in Section 2 hereof have been obtained. (Signatures appear on following pages.) 31 DocuSign Envelope ID:2EC6710E-7C12-4998-A2D5-A9E5CD44AAB6 ADOPTED AND APPROVED THIS 9th DAY OF JUNE 2023. CORDILLERA METROPOLITAN DISTRICT P ident 32 DocuSign Envelope ID:2EC6710E-7C12-4998-A2D5-A9E5CD44AAB6 IN ACCORDANCE WITH SECTION 2 OF THE FOREGOING RESOLUTION, THE PROVISIONS OF SECTION 1 THEREOF ARE CONSENTED TO BY THE FOLLOWING: CORDILLERA PROPERTY OWNERS ASSOCIATION INC. B/ild/WA- y: Meli sa urphy,Vice Pre ident Date: 77 3 COLORADO PARKS AND WILDLIFE By: Matt Yamashita,Area Wildlife Manager Date: 6/26/23 COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its BOARD OF COUNTY COMMISSIONERS Absent By: Kathy Chandler-Henry ATTEST: County Commissioners Chair rietlitk.aDocuSigned by: Date: 1-1 f fit.AA, DocuSigned by: reD62F216806"19... &Alf _I . .__ Clerk to the Board of (,���/1E7B2D/18tO473 County Commissioners Matt Scherr Commissioner Date: 10/31/2023 DocuSigned by: CA4AC1,„,-.44.47A Jeanne McQueeney Commissioner Date: 10/31/2023 33