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HomeMy WebLinkAboutR08-028 Adopting Emergency Service Impact Fees Eagle River Fire Protection DistrictTEAKEJCSIMONTOND 200806482 ~` REC: $0?00 DOC: 054:36:07PM ~~ir+]~r. l~7if~f~C! Commissioner ~'''~°''~ move a option of the following Resolution: 3 ~ N° BOARD OF EAGLE COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO 0 RESOLUTION N0.2008- 7iU IN THE MATTER OF ADOPTING EMERGENCY SERVICE IMPACT FEES WITHIN THE EAGLE RIVER FIRE PROTECTION DISTRICT WHEREAS, the Board of County Commissioners of Eagle, State of Colorado (hereinafter the "Board"), is authorized, pursuant to state enabling legislation including, but not limited ta, C.R.S. 30-28-101, et seq., to plan for and regulate the use and development of land in the unincorporated territory of the County of Eagle, State of Colorado, for the purpose of promoting the health, safety, convenience, order, prosperity, and welfare of the present and future inhabitants of the County of Eagle; and WHEREAS, Sections 23-30-305 and 30-11-107, C.R.S. give boards of county commissioners the discretion to cooperate with governing bodies of organized Emergency Service Providers and fire departments in the management and suppression of fires, the organization and training of rural fire fighting groups, the payment for operation and maintenance of fire fighting equipment, and in sharing the cost of managing fires; and WHEREAS, Sections 30-10-512 and 513, C.R.S. require the county sheriff to assume the role of fire warden in case of prairie or forest fires and assume charge of the fire or assist other governmental authorities in such emergencies for controlling or extinguishing such fires, and allow the county commissioners to appropriate fiends for the purpose of controlling fires in its county; and WHEREAS, Section 30-20-504, C.R.S. gives counties the authority to create within their incorporated territories local districts with the authority to provide fire protection and emergency medical services; and WHEREAS, Eagle River Fire Protection District ("Eagle River Fire") is a quasi- municipal government and political subdivision of the State of Colorado, operating pursuant to Article 1, Title 32, C.R.S., to provide fire protection services within portions of Eagle County; and WHEREAS, Eagle River Fire relies primarily on revenues from ad valorem property taxes to provide for its capital needs and to assure that it has available personnel, vehicles and equipment to respond and provide fire protection and emergency medical services to residents and visitors; and {00009835.DOC /}C:\WINDOWS\Tempordry Internet Files\OLKI\Impact Fees-EagleCounty 030607 (00009835).DOC WHEREAS, Eagle County is experiencing high rates of population growth, increased population density and increased demand for the services provided by Eagle River Fire as a result of land development within Eagle County; and WFIEREAS, the construction of new developments within the territorial jurisdiction of Eagle River Fire is placing significant additional demands on fire protection and emergency medical services; and WHEREAS, the volume and pace of land development in Eagle River Fire's boundaries threatens the provision of adequate fire protection and emergency medical services; and WHEREAS, the demand for fire protection and emergency medical services is immediate upon development of residential and commercial growth even though Eagle River Fire's funding from tax revenues accrues well after the demand for services exists; and WHEREAS, the Board finds and determines that one of the primary roles of development review is to ensure essential public services and facilities, and that in order to promote and protect the convenience, order, prosperity and welfare of present and future inhabitants of Eagle County, a rational system for identifying growth related costs incurred by Eagle River Fire in providing new and expanded fire protection and emergency medical services made necessary by expanded population and economic activity levels is necessary, and a fee structure therefore directly related to such costs and method for collection of such fees should be adopted; and WHEREAS, the adoption of a requirement that developers of residential, non- residential and lodging developments pay fire protection and emergency medical impact fees as established herein will ensure that development bears a proportionate share of the cost of providing new and enhanced fire protection and emergency medical services necessary to accommodate such new development; and WHEREAS, the Local Government Land Use Control Enabling Act of 1974 ("Act"), Sections 29-20-101 et seq., C.R.S., Article 28 of Title 30, and other applicable law grant broad authority to the County to plan for and regulate the development of land on the basis of the impacts thereof on the community and surrounding areas; and in amending the Act in 2001, the Colorado General Assembly specifically authorized local governments to impose impact fees to offset the cost of capital improvements necessary to serve new developments; and WHEREAS, Sections 29-1-801 et seq., C.R.S., concerning land development charges, recognize that counties may collect charges imposed on land development as a condition of the approval of development, if such charges relate to an expenditure for an improvement, facility, or piece of equipment necessitated by land development which is directly related to a local governmental service; and {00009835.DOC /} 2 WHEREAS, the Act authorizes and encourages local governments to cooperate or contract with other units of government for the purpose of regulating the development of land and the impacts thereof; and WI~REAS, Eagle County is authorized by statutory authority and by Colorado common law to regulate the development and use of land, and impose mitigation measures, including impact fees, upon proponents of land development activities if impacts related to the service demands created by the development are not adequately mitigated; and WHEREAS, Eagle County has adopted as part of the Eagle County Land Use Regulations Section 4-720, Emergency Service Impact Fees, which provides a program of Emergency Service Impact Fees to be imposed on development which generates a need for additional Emergency Service Capital Improvements, and the. Emergency Service Impact Fee program contemplates the Board of County Commissioners establishing the amount of such fees by resolution as provided herein; and WHEREAS, BBC Research c~i Consulting and Stan Bernstein and Associates, Inc. completed an Impact Fee Study ("Fiscal Impact Fee Study"), dated July 24, 2007, for Eagle River Fire, as the Emergency Service Provider, which determined the following: (i) the Allocated Value for Future Emergency Service Capital Improvements is $12,023,744; (ii) the projected Net Growth in SFEs, 2007 - 2026, is 7,195; (iii) the calculated Emergency Service Impact Fee per New SFE is $1,671; (iv) such Emergency Service Impact Fee is and will be determined from the utility meter portion of each unit's building permit; (v) using a Capacity Ratio analysis (Exhibit 4), progressively larger Emergency Service Impact Fees were determined for meter sizes from 3/4 inch to 6 inch; and (vi) these figures represent the capital expenditures by this Emergency Service Provider necessary to mitigate the impact of population growth and the commercial and residential development of land within the boundaries of Eagle River Fire; and WHEREAS, the Board of County Commissioners finds and determines that adoption of impact fees for fire protection and emergency medical services within the County and Eagle River Fire as contained herein, is necessary and designed for the purpose of promoting the health, safety, convenience, order, prosperity and welfare of the present and future inhabitants of Eagle County and is consistent with the County's goals, policies and plans, including the Comprehensive Land Use Plan. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of the County of Eagle, State of Colorado: 1. That the findings and projections contained in the Fiscal Impact Fee Study, attached hereto as Exhibit C and incorporated herein by reference, performed by BBC Research & Consulting and Stan Bernstein and Associates, Inc. are hereby adopted. {00009835.DOC /} 3 2. That the Impact Fee Abstract and calculation for the Emergency Service Impact Fees to be imposed by the County to mitigate impacts of land development activities within the Eagle River Fire Protection District on the provisions of fire protection and emergency medical services, attached hereto as Exhibit A and incorporated herein by reference, is adopted. 3. That the form of Intergovernmental Agreement Concerning the Collection, Payment and Use of Emergency Service Impact Fees, attached hereto as Exhibit B and incorporated herein by reference, is approved. The Chairman is authorized and directed to execute the IGA with Eagle River Fire. This resolution shall become operative only upon execution of the IGA by County and Eagle River Fire. 4. Eagle County will commence collecting these Emergency Service Impact Fees on ~ P r~.. L ~,~~ , 2008. ATTEST: By: County Commissioners COUNTY OF EAGLE, STATE OF COLORADO, by and through its BOARD OF COUNTY COMMISSIONERS By: P~ Runyon, Chai n By: n. i, Commissioner By: Sara J. Fisher, C ~ssioner MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular npeeting held the ~ day of ~~.~ , 2008, Commissioner ~~~~ seconded adoption of the foregoing Resolution. The roll having been called, the vote was as follows: {00009835.DOC /} 4 Clerk to the Board of Commissioner Peter F. Runyon Commissioner Sara J. Fisher Commissioner Arn M. Menconi This Resolution passed by ~ vote of the Board of County Commissioners of the County of Eagle, State of Colorado. {00009835.DOC /} p ~ Exhibit A Impact Fee Abstract Eagle River Fire Protection District Emergency Service Impact Fees were computed using the projected growth in single family equivalents (SFEs) for the years ending December 31, 2008 through 2025. Allocated Value for Future Emergency Service Capital Improvements $12,023,744 Net Growth in SFEs, 2008 - 2026 7,195 Emergency Service Impact Fee per new SFE $ 1,671 All new development within the Eagle River Fire Protection District shall be assessed an Emergency Service Impact Fee at the time a Building Permit is requested based upon the size of the water meter required for the residential, commercial (including lodging) or industrial unit to be constructed, as follows: 3/4 inch meter Emergency Service Impact Fee: $ 1,671 1 inch meter Emergency Service Impact Fee: $ 2,841 1.5 inch meter Emergency Service Impact Fee: $ 5,515 2 inch meter Emergency Service Impact Fee: $ 8,857 3 inch meter Emergency Service Impact Fee: $18,382 4 inch meter Emergency Service Impact Fee: $28,409 6 inch meter Emergency Service Impact Fee: $55,147 {00009835.DOC /} Stan Bernstein and Associates, Inc. Financial Planners and Consultants For Local Governments, Municipal Bond Underwriters, and Real Estate Developers 8400 East Prentice Ave., Penthouse Greenwood Village, Colorado 80111 Phone: 303-409-7611 Fax: 303-409-7612 Email: Stanplan @ Earthlink.net September 10, 2007 Mr. Charlie Moore Board of Directors Eagle River Fire Protection District RE: DRAFT #6 ERFPD -FUTURE SINGLE FAMII.Y EQUIVALENT UNIT AND IlVIPACT FEE REVENUE FORECAST Dear Charlie and Board of Directors: Enclosed for your review is the most current draft of the results of our 2007 forecast of future Single Family Equivalent Units (SFE's) within the boundaries of Eagle River Fire Protection District ("ERFPD"). For the purposes of this forecast, one SFE contains 3,000 square feet, with the exception of hotel rooms which are assumed to be 0.35 SFE's or 0.50 SFE's depending upon kitchen facilities. The attached Schedule 1 summarizes the future SFE'S for ERFPD for the years ending December 31, 2007 through 2025. The last two rows on page 2 summarize the Impact Fee Revenues that could be generated from the proposed impact fee rate of $1,671 per SFE. These Impact Fee Revenues total Approximately $14.6 million from 2007 through 2025 (approximately $480,000 for 2007). As of December 31, 2006 there were approximately 15,990 SFE's being served by ERFPD. Schedule 1 indicates an additiona18,714 SFE's could be added during the next 19-years which represents an increase of approximately 54.5% over the SFE base as of December 31, 2006. The total estimated increase in SFE'S during the next 19-years by geographical area is summarized on the following page: fl Mr. Charlie Moore ERFD Board of Directors September 10, 2007 Page 2 of 6 INCREASE 2007 - ADDED 2025 GEOGRAPffiCAL 5FE'S SFE'S DURING AREA (a7 12/31/06 (a,12/31/25 2007 SFE'S PERCENT ARROWHEAD 977 1,007 10 30 3.07% TOWN OF AVON 3,194 4,251 64 1,057 33.09% VILLAGES @ AVON(*) 268 2,428 0 2,160 805.97% BEAVER CREEK 2,706 2,757 30 51 1.88% BACHELOR GULCH 979 1,051 31 72 7.35% BERRY CREEK 1,080 1,113 13 33 3.06% EAGLE VAIL 2,352 2,388 5 36 1.53% EDWARDS/CORD VAL. 2,622 3,453 81 831 31.69% CORDILLERA/SUMIVIIT 968 1,406 33 438 45.25% RED SKY RANCH 16 168 8 152 950.00% WOLCOTT 0 1,350 0 1,350 N/A GINN PROPERTY 0 2,300 0 2,300 N/A MINTURN 703 893 10 190 27.03% RED CLIFF 125 139 2 14 11.20% TOTALS 15,990 24,704 287 8,714 54.50% (*) Approximately 514 additional SFE'S could be constructed at the Villages @ Avon. Schedule 1 indicates that an additiona1287 SFE'S could be added during 2007; 401 SFE'S units could be added during 2008 (approximately 55% of those living units assumed be generated from The Confluence Riverfront related development); and an average of 466 SFE' S are assumed to be added annually during 2009 - 2025. It is important that these SFE estimates are carefully monitored so that adjustments can be made as future events regarding construction activity becomes clearer. A brief summary of the various projects expected to be constructed during the next 20- years within the boundaries of ERFPD is described in the following paragraphs. ARROWHEAD Arrowhead is approaching full-buildout. We have assumed an average of 10.0 SFE's added during the next two years (2008 - 2009). This assumes that 5 - 6 large homes per year for the next two years will be constructed at various subdivisions at Arrowhead. TOWN OF AVON (EXCLUDING VILLAGES (a~ AVON) The Town of Avon (excluding the Villages of Avon) is expected to add approximately 1,057 additional SFE's during the next nineteen years as described in the following paragraph. Mr. Charlie Moore ERFD Board of Directors September 10, 2007 Page 3 of 6 Approximately 10 SFE's per year during 2008 are expected to be generated from the Wildridge subdivision with an additional 5 SFE's per year from 2009 - 2013 and 2 SFE's per year beginning in 2014. Approximately 4 SFE's per year are expected to be generated from the Mountain Star subdivision. The West Avon Mall area (including only Avon Center and Lot 61 projects) is expected to generate 176 SFE's in years 2010 - 2013. The Gates at Beaver Creek development is expected to generate 50 SFE's in 2007. The Madison Partner's PUD is located east of The Gates development and is estimated at 112 SFE's during 2010. The Sheraton Mountain Vista expansion is expected to generate 61 SFE's during 2010 and 46 SFE's in 2012. The Westin Riverfront development (Confluence) is expected to generate approximately 373 SFE's in years 2008 - 2010. The Pizza Hut area (including the Buck Creek PUD) is expected to generate approximately 84 SFE's by the end of 2012. There is also a possibility that the entire East Avon Commercial Area (City Market Area) could generate significant additional SFE's as a result of potential urban renewal activity which is currently being studied by the Town of Avon and its consultants - we are assuming no SFE's from this development at this time. THE VILLAGES AT AVON The Town of Avon has provided the following information reflecting the Town's most current thinking regarding the scope and timing of real estate development at the Villages at Avon. However, this information is obviously subject to a high degree of speculation and uncertainty and modification and change as of this date and should be viewed in that context. Based upon current zoning, approximately 2,160 additional SFE' S could be added during the next 20-25 years. It is important to understand that we are not projecting any additional SFE's generated from this area unti12010 when we estimate an additional 70 SFE's generated from residential and commercial construction activity. Following is a discussion of the information that the Town of Avon has provided regarding the future development plans at the Villages at Avon. Single Family Homes A total of 54 moderate-sized homes are expected to be constructed south of I-70 from 2011 through 2022. A total of 37 estate-sized homes (containing approximately 1.75 SFE's each) are expected to be constructed north of I-70 from 2013 through 2022. Condominiums. Multi-Family Proiects Approximately 144 RMF -1 condominiums are expected to be constructed during 2010 through 2013. Approximately 96 R1V1F - 3 condominiums are expected to be constructed during 2010 through 2013. Approximately 33 condominiums per year beginning in 2012 are expected to be constructed Area A, D, E, and F combined. An additional 650,000 square feet of retail space is expected to be completed by the end of 2015, which is would add a total of approximately 55.0 SFE's on a conservative basis. Mr. Charlie Moore ERFD Board of Directors September 10, 2007 Page 4 of 6 Affordable Housing Proiects A total of 500 affordable housing units are expected to be constructed in three phases. The first phase is complete. The second phase will consist of 155 units expected to be completed during 2012, and the final phase will consist of 113 units expected to be completed during 2013. Hotel Proiects A total of 560 hotel rooms (i.e., approximately 197 SFE's assuming each hotel room is assessed 0.35 SFE's) are expected to be constructed in three phases. The first phase is expected to be completed by the end of 2012 and consist of 150 hotel rooms generating 53 SFE's. The second phase is expected to be completed by the end of 2014 and consist of a 245 room hotel containing approximately 86 SFE's. The final phase is expected to be completed during 2017 and consist of a 165 room hotel containing approximately 58 SFE's. BEAVER CREEK Beaver Creek is approaching full-buildout. We are assuming an additiona17.0 SFE's per year during 2008 - 2010. BACHELOR GULCH Bachelor Gulch is also approaching full-buildout. A total of approximately 31 SFE's will be added during 2008 from the Beaver Creek Landing project. 5 SFE's are estimated during 2009 and 2010. Additional SFE's could also be generated from the potential conversion of a portion of the Ritz-Carlton Hotel rooms to large fractional, or whole ownership units. BERRY CREEK (SINGLE TREE) Single Tree is approaching full-buildout with an additiona120 SFE's expected to be added during the next two years as a result of new construction and remodeling projects. EAGLE VAIL Eagle Vail is 100% completed and built-out, although various renovation projects appear to be resulting in additional SFE's. EDWARDS (INCLUDING CORDILLERA VALLEY CLUB) Following is a summary of likely development in Edwards. Homestead, Heritage Park, South Forty, Fred Green, Riverwalk - lZiverwalk and Heritage Park are assumed to be complete in 2007. We estimate an additional 96 SFE's during 2008 - 2010 to be generated from various vacant lots in Homestead, South Forty, and the proposed Fred Green site. We estimate an additional 20 SFE's per year from these areas during 2010 - 2014, and 10 SFE's per year beginning in 2015. Mr. Charlie Moore ERFD Board of Directors September 10, 2007 Page 5 of 6 West End (Gashouse Corner) The West End development is expected to include 185 multi family and affordable housing units plus commercial space. We estimate 200 SFE's from this development during 2009 - 2014. Rick Mueller Develoument There is currently a PUD submittal fora 40 - 60 multi- family development residential project south of Edwards Corner (north of the church). We have assumed 50 SFE's during 2008 - 2009. Foz Hollow (West of Mobile Home Park, South Side of Hi~hway 6) The Fox Hollow PUD includes 21,000 square feet of light industriaUcommercial space and 26 residential units (duplex and condominium). A portion of the commercial space is under construction (veterinary space). We estimate a total of 10 SFEs from the commercial development and 26 SFES from the residential development (total of 36 SFE's during 2007 - 2010). This site also includes the Edwards Design and Craft Center PUD which includes 49,700 square feet of light industriaUcommercial space and 5 employee housing units. We estimate 25 SFE's from this site during 2010 - 2015. Equestrian Center Site 2 schools (1 high school and 1 elementary school) are planned for this site. The schools are expected to be complete by 2010. Based on current SFE's for Battle Mountain High School (40.9 plus 10.3 for the addition) and Edwards Elementary School (10.3) we estimate 40 SFE's for the high school and 10 SFE's for the elementary school in 2010. Cordillera Valley Club is assumed to add an average of approximately 6 SFE's (3-4 homes). CORDILLERA AND THE SUNIlVIIT The Summit area of Cordillera is assumed to add approximately 8 - 9 SFE's annually beginning in 2007 (although the number of new SFE's may decline to 4 -5 after the next 5 years - we will continue to monitor this). The Divide and Ranch subdivisions of Cordillera are assumed to add approximately 8 - 9 SFE's annually beginning in 2007. RED SKY RANCH - At full buildout Red Sky Ranch will contain 117 single family residences. As of December, 2006 there are approximately 16 completed homes in Red Sky Ranch. We estimate 5 additional homes per year beginning in 2007. WOLCOTT -Future development in the Wolcott area is projected to begin within the next ten years. At full buildout, we estimate a total of residential living units in the Wolcott area. We assume 391iving units in 2010 with full-buildout occurring by 2025. Mr. Charlie Moore ERFD Board of Directors September 10, 2007 Page 6 of 6 GINN DEVELOPMENT -For purposes of this report, we are assuming the Ginn Development outside of Minturn will contain 600 single family homes and 1,100 townhome/condominium units. It is assumed that residential units will begin construction during 2011 and approach full-buildout by 2025. MINTURN - On a conservative basis, it is expected that unidentified real estate development within the Town of Minturn will add an average of 10 residential units annually after 2006. RED CLIFF -According to official from the Town of Red Cliff, the town currently serves 125 SFE's for water and sewer. The Town is largely built out with only a few vacant lots remaining. The area is seeing a trend of scraping older homes to rebuild larger, newer homes. This trend may result in a couple new SFE's annually. LIlVIITATIONS Stan Bernstein and Associates, Inc. has assembled the above information, and the information presented on Schedule 1, based on information provided by others. Stan Bernstein and Associates, Inc. has not independently evaluated or tested this information. Consequently, Stan Bernstein and Associates, Inc. does not vouch for the achievability or accuracy of this information, and disclaims any opinion with respect to this information. Very truly yours, Stan Bernstein Stan Bernstein and Associates, Inc. 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NW O pq 7G F O D ~ V Y p ~ N ~ ~ W F ~ S $ Q - ~ N O ~ ~ ~ O ~ N 6 U' C7 ~ ~ ~ ~ _ ~ ~ ~ V iQO~ ~ ~a~ o ~ 0 3o~N~111~oc=ioQ~Qo ~WWO oWo ~o~' zzZOC ~ZOOO ~~~ N W 2 LL y mLL~f' Q~F W SriaLLN W Uf' (O.i~~f K~ ;F Q ~41NHF., $F W F F ~o 0 Q a Exhibit B INTERGOVERNMENTAL AGREEMENT BETWEEN THE COUNTY OF EAGLE, COLORADO AND EAGLE RIVER FIRE PROTECTION DISTRICT, CONCERNING THE COLLECTION, PAYMENT AND USE OF EMERGENCY SERVICE IMPACT FEES {00009835.DOC /} A-2 INTERGOVERNMENTAL AGREEMENT BETWEEN THE COUNTY OF EAGLE, COLORADO AND EAGLE RIVER FIRE PROTECTION DISTRICT, CONCERNING THE COLLECTION, PAYMENT AND USE OF EMERGENCY SERVICE IMPACT FEES THIS n~jTERGOVERNMENTAL AGREEMENT is made and entered into this day of / ~r~.~~ , 2008, by and between the County of Eagle, Colorado ("County") and Eagle River Fire Protection District ("District"), aquasi-municipal corporation and political subdivision of the State of Colorado. RECITALS WI~REAS, Eagle County is a statutory county and political subdivision of the State of Colorado operating pursuant to Title 30, C.R.S; and WHEREAS, the District is aquasi-municipal corporation and political subdivision of the State of Colorado operating pursuant to Article 1, Title 32, C.R.S., to provide prevention and extinguishment of fire, protection of life and property from fire, enforcement of fire prevention codes, hazardous materials response, and other emergency services authorized by statute or typically provided by a public fire department (collectively, "Emergency Services") within Eagle County; and WHEREAS, Article XI, Section 7, of the Colorado Constitution allows the State and its political subdivisions to give direct or indirect financial support and assistance to any other political subdivision as maybe authorized by general statutes; and WHEREAS, Article XIV, Section 18(2)(a) of the Colorado Constitution supports the cooperation or contracting by or among any of its political subdivisions to provide any function or facility lawfully authorized to each of the cooperating units, including, without limitation, the sharing of costs, the imposition of taxes, or the incurring of debts; and WHEREAS, Sections 29-1-201 and 203, C.R.S., permit and encourage governmental entities to make the most efficient and effective use of their powers and responsibilities by cooperating and contracting with other governmental entities to provide any function, service or facility lawfully authorized to each, including the sharing of costs; and WHEREAS, the Local Government Land Use Control Enabling Act of 1974 authorizes and encourages local governments to cooperate or contract with other units of government for the purpose of regulating the development of land, including the impacts resulting therefrom; and {00009562.DOC /}C:\WINDOWS\Temporary Internet Files\OLKI\ERFPD Impact Fee IGA -Eagle County 030607 (00009562).DOC WHEREAS, Section 29-20-104.5 authorizes counties and municipalities to impose an impact fee as a condition of issuance of a development permit to offset the costs of providing any capital facility directly related to any service the county or municipality is authorized to provide, that has a useful life of at least five years, and is required by charter or general policy of the county or municipality; and WHEREAS, new development within the County is placing significant additional demands on the provision of Emergency Services and the capital facilities necessary to provide them; and WHEREAS, the volume and pace of land development in the County threatens the provision of adequate Emergency Services and facilities; and WHEREAS, the County acknowledges that without the assistance of the County in collecting the Emergency Service Impact Fees and their expenditure on necessary public facilities to provide the Emergency Services, citizens of the County would suffer the result of decreased levels of Emergency Services; and WHEREAS, pursuant to Resolution No. 2006-015, the Board of County Commissioners of the County has adopted as part of the Eagle County Land Use Regulations Section 4-720, Emergency Service Impact Fees, which Section provides a program of Emergency Service Impact Fees to be imposed on development which generates a need for additional Emergency Service Capital Improvements; and WHEREAS, pursuant to Resolution No. 2008- the Board of County Commissioners has established applicable amounts of such Emergency Service Impact Fees for the District; and WHEREAS, the Eagle County Board of County Commissioners, upon consideration of the impacts of land developments within the County on the ability of the District to provide adequate Emergency Services and related capital facilities within the County, has determined that it is in the best interests of the citizens of the County and the District to cooperatively and in a coordinated fashion utilize the revenues from the County's Emergency Services Impact Fees to fund expenditures by the County on capital facilities needed to provide Emergency Services to new development; NOW, THEREFORE, in consideration of the Recitals stated above, and the mutual covenants and promises of the parties hereto, the receipt and sufficiency of which is acknowledged, the County and the District agree as follows: {00009562.DOC /} 2 SECTION 1. The purpose of this Agreement is to provide for the joint and cooperative funding of expenditures by the parties on capital facilities needed to provide Emergency Services to new development occurring within the County, and thereby carry out the purposes and intent of Eagle County Resolution No. 2008- ("the Impact Fee Resolution"). Terms used in this Agreement and not defined herein shall have the meanings given to them in the Impact Fee Resolution. SECTION 2. IMPOSITION AND COLLECTION OF AN EMERGENCY SERVICE IMPACT FEE 2.1 During the term of this Agreement, the County shall impose an Emergency Service Impact Fee on each Lot (or other portion) of a Development upon the Commencement of the Emergency Service-Generating Development and paid at the time of issuance of a Building Permit. 2.2 For requests for Development approvals that are processed by the County Community Development Department, the required Emergency Service Impact Fee shall be collected by the Community Development Department prior to such approval and transferred to the District as provided herein. 2.3 The County shall not issue a Development approval for a development activity subject to the County's Emergency Service Impact Fees until the applicant provides proof of the applicant's payment of the County's Emergency Service Impact Fee. 2.4 The Board of County Commissioners may waive the applicable Emergency Service Impact Fee on the development of low or moderate-income housing or affordable employee housing as defined in Section 4-710 of the Eagle County Land Use Regulations, and pursuant to C.R.S. 29-20-104.5(5). SECTION 3. ADMINISTRATION AND EXPENDITURE OF EMERGENCY SERVICE IMPACT FEE REVENUES 3.1 When an Impact Fee is paid to the County by a developer, such funds shall be transferred by the County to the District within sixty (60) days following receipt of such funds, less six percent (6%) of the fee as an administrative fee to offset the County's costs of collecting and administering the fee. The County hereby appoints and designates {00009562.DOC /} 3 the District as the County's designee and agent for purposes of administering and expending the Emergency Service Impact Fees as provided herein. 3.2 Upon receipt, the District shall deposit the County's Emergency Service Impact Fees in an interest-bearing account identifying the lot, development activity and development approval for which the Emergency Service Impact Fee was collected and the associated category, account, or fund of capital expenditure for which such Emergency Service Impact Fee was imposed. Any interest or other income earned on moneys deposited in the interest-bearing account shall be credited to the account. 3.3 The District shall use the County's Emergency Service Impact Fees to jointly fund, in combination with District funds, the capital facilities necessary to provide the Emergency Services needed to serve the development, as contemplated by the Eagle River Fire Protection District Impact Fee Study, dated July 24, 2007, prepared by BBC Research & Consulting and Stan Bernstein and Associates, Inc., or any updated, amended or replacement analysis adopted by the County ("Impact Fee Analysis") attached hereto as Exhibit `A' . 3.4 The District may only utilize the County's Emergency Service Impact Fee revenues for planning, preliminary architectural and engineering services, architectural and engineering design studies, land surveys, land acquisition, site improvements and off- site improvements associated with new or expanded facilities; the construction of buildings and other facilities; and the purchase of apparatus and equipment, including communications equipment, with an average useable life of at least five (5) years. No Emergency Service Impact Fees shall be used for periodic or routine maintenance of facilities and equipment, personnel costs, or operational expenses, or any purpose not otherwise authorized by Section 29-20-104.5, C.R.S. 3.5 In the event bonds or similar debt instruments are used to fund Emergency Service Capital Improvements necessary to provide the Emergency Services to a development within the County prior to collecting the Emergency Service Impact Fees associated with the development, once collected, the County Emergency Service Impact Fees maybe used to pay debt service on such bonds or similar debt instruments. 3.6 The District shall account for all County Emergency Service Impact Fees collected pursuant to this Agreement in the manner required by Sections 29-1-801, et seq., C.R.S., and other applicable law. 3.7 The District shall establish and maintain a separate accounting system to ensure that all County Emergency Service Impact Fees administered by the District pursuant to this Agreement are expended for the purposes set forth in this Agreement. No less than annually, and more frequently as maybe reasonably requested by the County, the District shall provide the County an accounting of all County Emergency Service Impact Fees collected, held and expended and otherwise administered by the {00009562.DOC /} 4 District on behalf of the County. The District shall also provide to the County no later than December 1 of each year a report of anticipated expenditures of the County Emergency Service Impact Fees for the coming year. 3.8 The expenditure of revenues from the County Emergency Service Impact Fees shall constitute an expenditure by the County for assisting in the provision of Emergency Services to new development within the County. In exchange for the County's expenditure of the Emergency Service Impact Fees to jointly fund capital facilities in cooperation with the District, the County shall obtain an ownership interest in the capital facilities funded by such Emergency Service Impact Fees, proportional to the amount of County Emergency Service Impact Fees utilized to fund the capital facility. 3.9 In exchange for the continued provision of the Emergency Services within the County by the District, the County hereby assigns to the District the County's interest in any and all capital facilities funded in whole or part by the County's Emergency Service Impact Fees, for the life of the capital facility. The District shall operate and maintain the capital facilities in good condition, subject to reasonable wear and tear. This section shall survive and remain in effect notwithstanding the termination of this Agreement or repeal or amendment of the Impact Fee Resolutions for so long as the District continues to use the capital facilities to provide the Emergency Services to the development which paid the County's Emergency Service Impact Fees. Upon the expiration of the useful life of the capital facilities, any remaining County interest shall automatically transfer to the District. SECTION 4. LIABILITY AND INDEMNIFICATION 4.1 Any other provisions of this Agreement notwithstanding, if the County is required to make any refund of any Emergency Service Impact Fee, the District shall reimburse the County for the required refund. The District shall indemnify, defend and hold the County and its officers, agents and employees harmless from and against any and all claims or liability arising from the County's implementation of this Agreement; or the administration and expenditure by the District of any of the County's Emergency Service Impact Fees. Specifically, this indemnification shall include, but not be limited to, any legal action by any party contesting this Agreement or the Impact Fee Resolutions on the grounds of unconstitutionality, lack of authority, or preemption by State law. The District shall also indemnify, defend and hold the County, and its officers, agents and employees, harmless from and against any and all claims arising from any breach or default in the performance of the obligations on the District's part to be performed under the provisions of this Agreement, or arising from any intentional acts, negligence or omissions of the District or any of its officers, agents, and employees. Such indemnification bythe District as provided in this Section shall include all costs, attorneys' fees, expenses and liabilities incurred in the defense of any claim or any action {00009562.DOC /} 5 or proceeding brought on any such claim; provided, however, nothing contained herein waives or is intended to waive any protections that maybe applicable to the District under the Governmental Immunity Act, Section 24-10-101, et seq., C.R.S., or any other rights, protections, immunities, defenses or limitations on liability provided by law, and subject to any applicable provisions of the Colorado Constitution and applicable laws. In the event the County is named as a party in any legal action, in consultation with the County, the District shall select legal counsel to represent the County in such action. SECTION 5. TERM OF AGREEMENT The term of this Agreement shall commence upon execution of this Agreement and shall continue until the Impact Fee Resolutions are repealed; provided, however, either party may terminate this Agreement upon giving at least ninety (90) days written notice of such intent to terminate to the other party. This Agreement is also subject to annual appropriation by either party of sufficient funds necessary to carry out the obligations of the parry. Upon termination, the District shall promptly return to the County all County Emergency Service Impact Fees and interest accrued thereon that have not been expended on capital facilities under this Agreement; and each party shall have no further obligations under this Agreement, subject to the continued validity of Sections 3.8 and 3.9 as to capital facilities funded prior to such termination in whole or in part by the expenditure of County Emergency Service Impact Fees. SECTION 6. REMEDIES 6.1 Time is of the essence in this Agreement. 6.2 If a party violates or breaches or fails to keep or perform any covenant, agreement, term or condition of this Agreement at the time designated; or in the event a parry is in default or in violation of a term of this Agreement for which no specific time is designated, and the default or violation continues or is not remedied within thirty (30) days after notice in writing is given by the non-breaching party to the other party specifying the matter claimed to be in default, the non-breaching party shall be entitled to pursue all remedies available at law or in equity to enforce the terms of this Agreement, including the right of specific performance; provided, however, with respect to any default that cannot be cured within thirty (30) days, such legal remedies shall not be pursued if the breaching party takes all steps necessary to cure the default within such period and thereafter continuously exercises due diligence to cure the default. 6.3 The County shall use its best efforts to collect the Emergency Service Impact Fees and withhold Development approvals until the Emergency Service Impact {00009562.DOC /} 6 Fees are paid as provided in this Agreement; however, inadvertent failure to do so by the County shall not give rise to any liability by the County. The County's failure to collect the Emergency Service Impact Fees or the County's issuance of Development approval without first receiving the Emergency Service Impact Fees shall not constitute a waiver of the County's authority to collect such fees. In such case, the non-collected Emergency Service Impact Fees shall remain valid obligations and the County and the District shall cooperate to take such actions as are necessary to facilitate the collection of the same including, without limitation and to the extent legally permissible, suspending or revoking any permission to develop land previously granted. SECTION 7. NOTICES 7.1 All notices that maybe required or given pursuant to this Agreement by a parry to the other, shall be deemed to have been fully given when made in writing and deposited in the United States first class mail, postage prepaid, and addressed as follows: DISTRICT Eagle River Fire Protection District Post Office Box 7980 Avon, Colorado 81620-7980 EAGLE COUNTY Director of Community Development Eagle County Community Development Department P.O. Box 850 Eagle, Colorado 81631 7.2 The address to which any notice or other writing maybe given to any parry as above provided maybe changed by written notice given by such party as above provided. SECTION 8. MISCELLANEOUS PROVISIONS 8.1 This Agreement is expressly conditioned upon the continuance in force of the Impact Fee Resolutions. In the event the Impact Fee Resolutions are repealed or amended in a manner that is inconsistent with the terms of this Agreement, this Agreement shall terminate. 8.2 No modification or waiver of this Agreement or any covenant, condition or provision contained herein shall be valid unless in writing and duly executed by all parties. {00009562.DOC /} 7 8.3 This written Agreement embodies the whole Agreement between the parties and there are no inducements, promises, terms, conditions or other obligations made or entered into by the parties other than those contained herein. 8.4 This Agreement shall be binding upon the parties hereto, their respective successors or assigns, and may not be assigned by any party without the express written consent of the other party. 8.5 All terms contained in this Agreement are severable and in the event that any of them shall be held invalid by a court of competent jurisdiction, this Agreement shall be interpreted as if such invalid term or condition is not contained herein. 8.6 The signatories to this Agreement affirm and warrant that they are fully authorized to enter into and execute this Agreement, and all necessary actions, notices, meetings and/or hearings pursuant to any law required to authorize their execution of this Agreement have been made. 8.7 This Agreement maybe amended from time to time by written Agreement duly authorized by all the parties to this Agreement. 8.8 This Agreement does not and shall not be deemed to confer upon or grant to any third party any right enforceable at law or equity arising out of any term, covenant, or condition herein or the breach thereof. 8.9 This Agreement, or a memorandum of this Agreement, maybe recorded in the records of the Eagle County Clerk and Recorder. {00009562.DOC /} 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. COUNTY OF EAGLE, STATE OF COLORADO, by and through its Board of County Commissioners By: ,. Peter F. Runyon, Chairman n ~, Jar, Commissioner Arn M. Menconi, Commissioner Teak J. Simonton '~~ '~~, Clerk of the Board of County Commissioners EAGLE RIVER FIRE PROTECTION DISTRICT, a Colorado special district, acting by and through its Board of Directors '~. BY~ ~ ~ ~ ...Q Bice Mielke, CHauman Attest: ..~ Edward O'Brien, Secretary {00009562.DOC /} 9 Exhibit A Eagle River Fire Protection District Impact Fee Study {00009562.DOC /} 10 Exhibit C Eagle River Fire Protection District Impact Fee Study -Phase II, Final Report July 24, 2007 BBC Research & Consulting Stan Bernstein and Associates, Inc. {00009835.DOC /} A-3 RESEARCH $~ CONSULTING 3773 Cherry Creek North Drive Suite 850 Denver, Colorado 80209-3827 303.321.2547 fax 303.399.0448 www.bbcresearch.com bbc@bbcresearch.com July 24, 2007 Mr. Charles Moore Fire Chief/General Manager Eagle River Fire Protection District 351 Benchmark Road Post Office Box 7980 Avon, Colorado 81620-7980 Re: Eagle River Fire Protection District Impact Fee Study -Phase 11, Final Report Dear Mr. Moore: The Eagle River Fire Protection District hired BBC Research & Consulting (BBC) and Stan Bernstein and Associates, Inc. (SBA) in November, 2006 to calculate impact fees for the Eagle River Fire Protection District (District). We will do so by answering the following four questions: What is the current level of service provided by the Eagle River Fire Protection District? Since the primary purpose of impact fees is to help the Eagle River Fire Protection District maintain its current level of service in the future, it is necessary to know the level of service the Eagle River Fire Protection District is currently providing to the community. 2. What future growth is expected within the District? How many new residential households and nonresidential buildings will be served by the Eagle River Fire Protection District over the next ten years? 3. What new infrastructure is required to serve future growth while maintaining the current level of service? For example, how many new stations and fire trucks will be needed over ten years to maintain the current level of service? c B t final Report - Pag® 2 4. What impact fee is required to pay for the new infrastructure? Here we calculate an apportionment of new infrastructure costs to future residential and nonresidential land- uses. Then, using this distribution, the applicable impact fees are determined. Addressing these four questions, in order, provides the most effective and logical way to calculate impact fees for the Eagle River Fire Protection District. 1) What is the current level of service provided by the Eagle River Fire Protection District? The District aims to fulfill two goals in regards to the level of service provided to the community: 1. The presence of one fire station within five road miles of any major development within the District's protection area; and, 2. For most routine requests for emergency assistance, the District will respond with a single resource with four firefighters as opposed to two resources with 4 firefighters. These service level goals are designed to promote efficienry, safety and better preparation for simultaneous calls throughout the District. However, the District's current infrastructure and equipment are sometimes insufficient to fulfill the second goal due to recent and anticipated growth. In order to maintain this level of service to both current and future residents, additional infrastructure and personnel will be needed by the District. Impact fees will help mitigate the financial burden created by these future investments. 2) What future growth is expected in the District? On March 6, 2007, SBA prepared an analysis of expected residential and non-residential growth that is likely to occur within the boundaries of the Eagle River Regional Fire Protection District during the next 20 years. This document is attached as Appendix A. Exhibit 1 summazizes the overall growth projections of the District from December 31, 2006 to December 31, 2026. q ~, e. Final Report -Page 3 Exhibit 1. Future Growth -Eagle River Fire Protection District Service Population SFEs SFEs 20-Year Geographic Area 12/31/2006 12/31 /2026 Growth Arrowhead 977 1,007 30 Town of Avon 3,189 4,229 1,040 Villages at Avon 268 1,642 1,374 Beaver Creek 2,701 2,754 53 Bachelor Gulch 970 1,042 72 Berry Creek 1,069 1,099 30 Eagle Vail 2,346 2,380 34 Edwards/Cord Val. 2,637 3,072 435 Cordillera/Summit 963 1,204 241 Red Sky Ranch 16 168 152 Wolcott Area „ 1,350 1,350 Ginn Property - 2,180 2,180 Minturn 703 893 190 Red Cliff 125 139 14 Total 15,964 23,159 7,195 Source: Stan Bernstein end Associates, Inc. As shown above, the District's service population will experience growth of an estimated 7,195 single family equivalents (SFEs) in the next twenty years, a 45.4 percent increase. The largest growth will occur at the proposed Ginn Planned Unit Development, with an increase of 2,180 SFEs. The proposed Villages at Avon could add 1,374 SFEs; and the Wolcott Area, while difficult to precisely define at this time, could add up to 1,350 SFEs. 3) What n®w infrastructure is required to maintain the current 1®vel of service for future growth? Exhibit 2 below includes all new infrastructure (including purchases, repair and upgrades) as detailed in the Eagle River Fire Protection District 20-year CIP. This list of capital is consistent with the recommendations of the independent siting consultant retained by ERFPD provided to us via a-mail by Charlie Moore on Friday, May 4, 2007. d p e ~` Final Report -Page 4 Exhibit 2. Future Infrastructure Needs-2007 to 2026 . Portion Allaoated Year Purchase to Include in Purchase Type of Capital Infrastructure Purchased Value Impact Fees Value Buildings Avon Flre Statlont'I 2010 $5,500,000 45% $2,478,859 Mintum Fire Stationt'I 2014 $500,000 10% $50,000 Wolcott Flre Station 2009 $750,000 100% $750,000 Gilman Fire Statlont'I 2011 $2,500,000 100% $2,500,000 Edwards Flre Station 2010 $2,500,000 45% $1,126,754 Eagle-Nall orTraerCreek Fire Station 2014 $2,500,000 45% $1,126,754 Red Cliff Fire Station 2009 $950,000 0% $0 Employee Housing Units TBD $1,250,000 45% $563,377 Public Safety Training Facilityt~ NA $7,000,000 4.5% $315,000 Subtotal Buildings E23,450,000 38% $8,910,744 Vehicles and Equpment Fire Rescue Vehicle for Avon Fire Stationtsl 2010 $400,000 100% $400,000 Pumper Truck for Eagle-Vail Fire Station TBD $450,000 100% $450,000 Pumper Truck for Gilman Fire Station 2010 $450,000 100% 8450,000 Ladder Truck for Mintum Fire Station 2014 $980,000 100% $980,000 Brush Truck for Edwards Fire Station 2010 $125,000 100% $125,000 Brush Truck for Gilman Fire Station 2010 $150,000 100% $150,000 Water Tanker for Gilman Fire Station 2014 $425,000 100% $425,000 Incremental Staff Vehicles Vehicle ql TBD $50,000 100% $50,000 Vehicle N2 TBD $50,000 100% $50,000 Video Conferencing Technology TBD $60,000 096 $0 SCBA Recharge Compressor TBD $15,000 100% $15,000 Subtotal Vehicles and Equipment $ 3,155,000 98% $3,095,000 Impact Fee Studrta> 818,000 100% $18,000 Grand Total: 512,023,744 (Vote: These new assets will allow the District to meet the level of service goals. (1) Includes land, design, building and FFE. (2) Eagle River Fire is one of [en agencies planned to use [his facility, therefore only ten percent of its growth attributable purchase value a included In our wlculadora. (3) Value represents fully-loaded' price of the vehicle, including toots, communicedoru end other equipment. (4) Our Impact Fee Study is fully impactfee eligible. Source: Eagle River Fire Protection Dis[dc[ 20-year CIP. The District plans on constructing new buildings and purchasing new vehicles and equipment in the next twenty years. However, not all of these new infrastructure purchases aze associated with growth. Some capital costs aze for repair and replacement of facilities e.g., standard periodic investment in existing facilities such as replacing an older fire engine and re-roofing a fire station. These costs are not impact fee eligible. Some capital costs aze for betterment of facilities, or implementation of new services (e.g., development of a fire training facility for the first time). These costs aregenerully not entirely impact fee eligible. Some costs aze for expansion of facilities to accommodate new development at the current level of service (e.g., purchase of new fire truck to accommodate expanding population). These costs are impact fee eligible. 4 r r- Final Report -Page 5 Because there are different reasons why the District invests in capital projects, BBC conducted a "GRUM" Analysis on all projects listed in the CIP: ^ Growth. The "G" in GRUM stands for growth. To determine if a project is solely related to growth, we ask "Is this project designed to maintain the current level of service as growth occurs? "and "Would the Fire Department still need this capital project if it weren't growing at all?" "G" projects aze only necessazy to maintain the Department's current level of service as growth occurs. It is thus appropriate to include 100 percent of their cost in the impact fee calculations. Repair & Replacement. The "R" in GRUM stands for repair & replacement. We ask, "Is this project related only to fixing existing infrastructure?" and "Would the Fire Department still need it if it weren't growing at all?" "R" projects have nothing to do with growth. It is thus not appropriate to include any of their cost in the impact fee calculations. ^ Upgrade. The "U" in GRUM stands for upgrade. We ask, "Would this project improve the Fire Department's current level of service?" and "Would the Department still do it even if it weren't growing at all?" "U" projects have nothing to do with growth. It is thus not appropriate to include any of their cost in the impact fee calculations. Mixed. The "M" in GRUM stands for mixed. It is reserved for capital projects that have some combination of G, R and U. "M" projects by their very definition aze partially necessitated by growth, but also include an element of repair, replacement and/or upgrade. In this instance, a cost amount between 0 and 100 percent should be included in the fee calculations. Although the need for these projects is triggered by new development, they will also benefit existing residents. Projects that are 100 percent growth-related were determined by our study to be necessitated solely by growth. Alternatively, some projects were determined to be "mixed" in that they had elements of growth, repair and replacement and/or upgrade. The Edwards Fire Station and Employee Housing Units (found in Exhibit 2) are examples of such projects. In these situations, only a portion of the total cost of each project was included in the final impact fee calculation.' The remainder of the cost of each "mixed" project should be paid by the Disuict. After accounting for "mixed-use" purchases, the approximate total value offee-eligible capital construction and purchases is $12.0 million. 4) What impact fee is required to pay for future infrastructure? Here we calculate how much of the new fee-eligible infrastructure will be paid by developers. Using the distribution of future land-use from Exhibit 1, we can assign future infrastructure costs from 1 As a proxy for the "M" percent, we used a ratio of total incremental square footage from 2007-2026 to total current square footage. This ratio equaled about 45 percent. .t , ~ C Final Report -Page 6 Exhibit 2 to the appropriate development category and calculate the applicable fees. Our results are shown in Exhibit 3. Exhibit 3. Calculation of Impact fFees Note: (1) See Exhibit 2. (z) see Exhibit 1. source: Eagle River Fire Protection District 20-year CIP, Stan Bernstein and Associates, Inc. and BBC Research & Consulting. Impact Fee Calculation Allocated Value for Future Fire Infrastructure (1) Net Growth in SFEs 2007-2026(z) Impact Fee per New SFE $12,023,744 7,195 51,671 As indicated above, we have calculated an impact fee of $1,671 per new SFE. A fee not to exceed this amount is recommended for the District. Single family homes would be charged this fee unless they were large enough to count as more than one SFE, as determined from the utility meter portion of each unit's building permit. Similarly, multifamily and non-residential development projects would be assessed impact fees according to the number of SFEs they represent. A residential meter (3/4 inch) is considered the standard meter and has a capacity ratio of 1. All larger meters serve commercial purposes and have capacity ratios greater than 1. Exhibit 4 lists the capacity ratios and meter size and type, according to the American Water Works Association. Exhibit 4. Capacity Ratios Source: American Water Works Association. Meter Size T}'pe CapacityRatio impact Fee 3/41nch Displacement 1.0 $ 1,671 11nch Displacement 1.7 $ 2,841 1-1/21nch Displacement 3.3 $ 5,515 21nch Displacement/Compound 5.3 $ 8,857 31nch Compound 11.0 $ 18,382 41nch Compound 17.0 $ 28,409 61nch Compound 33.0 $ 55,147 S Inch Compound 53.3 $ 89,071 81nch Displacement 60.2 $100,602 10lnch Compound 77.1 $128,900 121nch Compound 144.2 $240,988 Using the ratios from Exhibit 4 and the utility meter portion of each new building permit, the District can determine how many SFEs each new building represents and assess the appropriate fee. For example, a new commercial building with a 3 inch meter warrants an impact fee of $18,382. Implementation Recommendations We offer the following recommendations for your consideration: ., ~ Final Report -Page 7 ^ The fees calculated in Exhibit 4 should be considered as the maximum defensible amount, and can be lowered by the District's board if there are economic development concerns. ^ In order for the District to collect those fees, it will need to pursue intergovernmental agreements (IGAs) with local governments that have building permit authority such as Eagle County and the Towns of Avon, Minturn and Redcliff. The District should promptly create and maintain an "Impact Fee Fund" separate and apart from the General Fund. All current and future impact fee revenue should be immediately deposited into this account, and withdrawn only to pay for growth-related infrastructure. The Department's General Fund should be reserved solely for the receipt of tax revenues and associated interest earnings, and ongoing operational expenses including the repair and replacement of existing infrastructure not related to growth. ^ The fees calculated in this study should be updated periodically as the District invests in additional fire protection infrastructure beyond what is listed in Exhibit 2, and/or the District's population or inventory of commercial square footage change significantly. ^ The fees should be updated annually based on the Engineering News Record index or other infrastructure inflation indices. ^ For projects listed in the Capital Improvements Plan that are not 100 percent growth- related ("mixed" projects), the District should assume the responsibility of paying their share from existing fund balances and/or ongoing revenue sources not tied directly to growth. ^ The timing of the initial implementation of the fees is important. For example, an estimated 218 SFEs are conservatively estimated to be constructed within the District's boundaries during 2007 - at an assumed fee rate of $1,671 per SFE, approximately $364,278 of fee revenue would be lost if the fees were not implemented during 2007. ^ It is important for the District to understand that approximately $12.0 million of fees are estimated to be collected from during years 2007 through 2026. However, the District's CIP (as set forth on Exhibit 2) indicates that growth related capital improvements will be required to be constructed or purchased during years 2009 through 2014. Consequently, these fee revenues will likely lag the need for growth related CIP projects. The District should plan for this net fee revenue shortage, and may have to advance General Fund or Bond Fund revenues to the Impact Fee Fund and seek reimbursement in future years from fee revenues generated. It will be difficult for the District to market revenue bonds which are supported by estimated fee revenue generated in future years. i ~ ~' Final Report - Pag® 8 ^ In the event that Developers pay for CIP related improvements, the District could consider implementing a type of "Cost Recovery Polity" so that Developers are reimbursed all, or a portion, of the fees generated by their respective real estate developments. The District has hired a planning consultant to refine the District's CIP. While we feel the current CIP accurately reflects future purchases for the District, any changes made by the consultant can be easily applied to the impact fees through amendment. Please feel free to contact us with any questions or concerns you might have about our conclusions. Our toll-free telephone number is 800-748-3222, x236 for Tom Pippin and x252 for Scott Kitchens. Sincerely, ~ (~ Thomas A. Pippin Managing Director Stan Bernstein Stan Bernstein Bernstein and Associates, Inc. S~+a..~ Scott Kitchens Research Associate