Board of Trustees - Regular Meeting

You know what the door is like so upset like people are asking call the door like you're not record anyone break we are unmuted we are recording good to 559.

559. Yep. I think we're good.

Okay. Ready? like to call to order the town of Frraasier Board of Trustees meeting Wednesday, November 5th at 6 PM. Can I have a roll call, please? Katie Fischer, Adam Quickman, Julie White, Katie Souls, Brian Circenick. Could I have an approval of the agenda, please? So moved. Second. Any further discussion? All in favor? I.

Any opposed? Okay. Um, could I have a motion to approve the consent agenda which includes the minutes for October 15th, 2025, resolution 2025 11101 contract with Conroy Excavating Clayton Court Hydrants and resolution 2025 111012 shy reduction for water and sewer infrastructure buyers peak ranch filing parcel 1 and three Mill Avenue apartments. So moved. Second. Further discussion. All in favor? I. Any opposed?

Okay, great. We will move on to open forum. This is for business not on the agenda. Uh you can have uh up to three minutes to approach the podium or if you're online, please raise your hand. I'll take people in the audience first. Anybody online? [clears throat] Okay, we'll keep moving along. discussion, possible action regarding resolution 2025103 D2C 100% design PW building. Paul,

good evening, mayor, board of trustees. Paul Johnson, public works director. Uh before you, you have resolution 25103 authorizing the town manager to enter into a contract D2C architects for the 100% design uh plans for the new public works facility. Uh there's the background is this has been a project for the town since at least 2012 um again in 2021 and then we went to contract um in February of this year with um D2C for the 30% schematic design plans um that got us to the preliminary cost estimate. Um the recommendation uh well also in there you'll see the budget to cover the contract amount with funds that were already approved for this year and then uh budgeted funds for next year that'll be in the budget presentation. Um my recommendation is based on the attached proposal staff recommends proceeding to 100% design with D2C to include coordination in an RFQ to bring a construction manager/general contractor on board to ensure constructibility of the final plans under a guaranteed maximum price arrangement. There any questions?

I left my notes at home, but I was wondering about I don't think it was in their proposal than budget at this time, but for a potential underpass under the railroad. It's the existing underpass. We'd be Thank you. coordinating uh with both Grand County and development in the area right there on 72 and for uh you know deep wet infrastructures and also paving. Great. Coordinate so that we're not digging things up as one is doing work and the other is trying to pave. So yeah, and bringing down the the height of the road a little bit so that semis don't get stuck underneath it.

The current plan is to bring the grade down underneath and then it would come back up to meet as you drive through there. You can see Oxbow Court. It's about 8 to 12 inches higher than the road. So, we need to make sure that that transition works well, but so it may raise a little bit and but we have um the ability to drain to um El Creek there, but there's also obviously the drainage concern in that area as well. Okay, good. Thank you. But yeah, that's part of Kimley Horn's okay. portion of the design. Thank you. So, the road construction is included in that that not to exceed

the entire design is included in here. The only thing not included would be the construction admin part, the um them going around and checking on everything, but that would go once we went to vertical, we would bring them on as part of the proceeds there to build the building. This is to get us the set of plans um ready to go so that we're ready to [clears throat] put our bid for well the the bid for the RFQ should go out in the next two weeks so that we're getting them on board similar to the way uh D2C had brought Big Valley on for the 30% SDS to get price on just that basic design. This would bring somebody on to work with them all the way through the design so that you know what that it's all constructable and then they would be they would give us a guaranteed maximum price to at the end of this design.

So looking at this am I reading this correctly in the uh fund funds that uh twothirds of it is going to be paid for by water and wastewater enterprise funds. Yeah. Is that proportionate to their use to we have or is that just an even split? I I mean it seems like uh public works facility. We have three departments. Yeah. In a building. So we're trying to use the funds we have available. But those are enterprise funds and if they're so in talking with subsidizing streets then um they're paying for a portion of the building that they're housed in, their equipment's housed in, and their materials are housed in. Yeah. Well, so there's a discussion of finance and the manager on how we were going to

and we discussed this and you said it was mobile in the budget meeting. Yeah. As far as water and waste water being twothirds of the operations, right, in that building or capacity of that building or stamping of and we Yeah. I mean, and with when we go to do like coops to build the actual facilities, that's when we can really hammer out that, you know, that situation for this that the focus. I'm not opposed to going ahead with 100%. I just don't know that uh water and wastewater should be paying twothirds of a facility that they probably use a third of.

Yeah. And we've been talking about that too. Um and uh we we can have that conversation more with the coops too, but um some of the discussion has been about you may have less people in utilities, water utilities, but the cost of everything they do and their materials are high. I mean, anything that goes to when you go to replace a water line or sewer line is typically a huge very expensive project, but it's just I understand where you're coming from for the I mean, the story everything is proportionate to the total operations and and it's not twothirds of our total operation. Yeah. And if our water and wastewater bills are subsidized in streets, that's a way of getting around an enterprise.

Yeah. So, that's something that we'll look at once we look at getting it built. But for this purpose, are you wanting to to dial that back or I I I I definitely wanted to make it public. Okay. And we discussed it in budget and you said that it was flexible and here it is at 2/3. Yeah, we were that conversation was more focused on the coops. But um but yeah, we can you [clears throat] know if you if you want us to modify to you know we could do 70% plan.

What document are you looking at? I just don't know. Just the breakdown of uh the 2025 and 2026 funds. It's $150,000 each from general fund which is streets and then water and wastewater 150 each when uh that that's definitely not proportional to operations. So, but is that something that we're approving tonight? It's just for the architectural, but it is being split three ways to cover the cost of the pay for the architectural design. Gotcha. Um, so if the board decides not to move forward with this model, we could look at dialing it back to 70 or 75% plans and making it more maybe more.

I think it should be more proportional. I mean, this is our water rates paying for streets. And I'm all for funding it at 100% and moving forward, but I I think it should be appropriately funded. We don't think we can fund it at 100% unless you use this model. But um that's just again for the architectural plans. But if you want, we can we can cut that and then instead of 100% plans, we're looking at a smaller amount. Um that's just up to you guys and what you want to do. I'd like to move forward as is the current proposal and then just to keep things going.

Yeah. And then longterm with the construction, we can have the harder look at the contributions by our funds. But it kind of sounds like we can't afford it.

We can afford it with the model that that Paul is presenting. If you want to look at, you know, a different fraction where you instead of 1/3, you want more of it coming from the general fund. Um, we wouldn't be able to afford this this cost to get to the 100% plans. Um, and the the benefit to getting to the 100% plans, and Paul, you probably speak to this a little bit, but just being a being able to have a more accurate estimate of cost, um, a guaranteed maximum price based on those finalized plans. Um, that just provide for better budgeting, looking forward, and having better numbers to work with. Um, you know, we, uh, Big Valley Construction provided an estimate based on 30% plans. 30% plans. They'll be able to fine that. I'd

also say when we first started this, we were looking at the COP proceeds covering this and with the COP proceeds not happening early like we pushing those back. This is a way to fund the 100% plans without going into COP debt. Okay. Well, um and I would say utilities has, you know, has the exact same amount of space in that facility as Streets does for admin.

The the office spaces are the same. They have their own pullthrough bay. They're going to have their own storage yard now for pipe, which we've never had before. So, there are additional things that utilities is getting that they've never had before at this facility. They can't store pipe here. We have a whole area for them to be able to store pipe. They're going to get a meter bench that they've never had before. So, there's things that we're giving utilities that they've asked for in this building that they've never had before.

Okay. I I think uh we need to have a serious look when it comes to construction time about these proportions because I I definitely will not vote yes for constructing it if water and waste water are twothirds of this. Okay. I I mean I'm 100% for a new facility and I'm 100% for moving this forward. But I think the costs need to be where they are

appropriate. our water bills. I mean, park's asking for a reduction a couple weeks ago. We're we're subsidizing streets and and uh and if we're creating a parks department, they're not, you know, um I I think uh we need to look at the construction and and this is something I brought up in budget.

Thanks. Any more discussion? I'm going to want to make a motion. I'll make a motion to approve resolution 2025 11103. Moving ahead with 100% design of our new public works facility. Second. Further discussion. All in favor? I. Any opposed? Thank you. Thank you. Okay. Grand County Water Information Network. Kyle Masterson. [cough] [clears throat]

Uh, good evening everyone. My name is Kyle Mastersonson. I'm with Grand County Water Information Network or as we like to call it, GC Win because it's a mouthful. Um, and I was asked to come here today to give a brief 10-minute overview of who we are, what we do. uh and to I guess reestablish the long-standing relationship that the town of Frraasier has had with Grand County Water Information Network as a paying member for the past 20 years. So, I did come prepared with my printout because I didn't know I was going to have two cheat sheets in front of me. So, this is a very nice setup, something I wish I had in my classroom when I taught at the high school for four years. Um, but I I'll jump right into it because I do tend to uh talk about things prior. uh before they're up on my presentation. So, here's the quick agenda. I'll give you a quick quick overview of who we are. Uh I'll talk a little bit about the town of Frraasier's previous support over the years. Uh just give you a highlight of our 2025 season. Uh and then I'll let you know uh what the membership voted on just last week in terms of dues. I've already introduced myself. Uh we are a small but mighty team up in Grand Lake. Uh we have an education program manager, Caitlyn Miller. She is amazing and I could not do our education events without her. We then have two other uh field staff members uh Renee Shippy and Jamie Lowry finished out our year. Brooklyn Chamino was our past uh water quality coordinator. They have since moved on to a law school in Oregon. Uh but was a huge asset to our team and with a team of four, we get a lot done within the county. We're run by a board of directors of nine. You'll see eight of those here. These are our eight

outstanding board members that have been with us for several years. Uh and then a welcome to our newest board member. We acquired East Grand Water Quality Board last week. Uh Lori MCI was a board member for that organization and as an agreement of the merge we carried her over to our board now. Uh and she also represents the fairways at P Creek. First and foremost, I have to give a huge thanks to all of our members. Uh, I'll discuss how membership works here in the next slide, but we have a whole slew of major corporations all the way down to EIE, who's an individual member, all of the, uh, water and sanitation districts, the towns, uh, and several other nonprofits on that list. We're originally Oh, and at any point if you have a question, it doesn't bother me. If you want to chime in, we don't have to wait till the end. That whichever one suits you all. So we were originally incorporated in 2004. So we're celebrating 21 years of service to Grand County. Uh this is my third year with GCI, my second as the executive director. And we are funded by this membership system. So all of those members that you saw pay different rates based off of the membership tier that they are in. uh specifically the towns and sanitation districts are on an SF model. So we take the total SFS for drinking water and wastewater multiply that by 75% and that is how we come up with the dues for the towns and uh wastewater treatment plants. Our vision this is new as of January of this year. So, a future where our communities thrive in harmony with a healthy, resilient upper Colorado River watershed guided by science,

collaboration, and shared stewardship. Uh, we did a twoday uh inperson uh strategic plan um process with peak facilitation to help us take those 20 years, try and relive them, revive them. Uh and this was our vision that we came up with because we were lacking one. Our mission got a little bit of an update. Uh I'm still memorizing our new one. I had our old one memorized, but you can see it on the screen there. So to to support collaborative efforts to protect and enhance the upper Colorado River wershed by serving as a leader in data accessibility and monitoring efforts in Grand County. GCW was originally founded to be the data pros, if you will, in the county. any water quality data that was collected in the county was given to us so that we could upload it to our database so it could be publicly shared throughout the county throughout the state. Really if you have internet you could access it and that is still one of our biggest things that we offer uh through our nonprofit is that data accessibility. We are driven by our four core values being science driven. Again, you see that word collaborative. We work with a lot of entities. Um, we are nonpartisan, which is an interesting one when you talk about water. Uh, but I enjoy that one. Um, and then watershed stewardship. The town of Frraasier has been a supporting member of GC Win, as far as I can tell from our record, since incorporation. Uh so I decided to throw up a couple financial contributions over those 21 years. You can see in 2004. Um it looked like at that time the town of Frraasier and the Frasier sanitation

district were separate in which now they are one. So these dues reflect as if the past they were also combined. So in 2004 it was a,000 total dollars. Um the next year was 2500. I can only assume that's because we were incorporated uh in August of 2004. So I'm guessing those first year were prrated and then a big jump. And you can see the past two years 2024 and 2025 what your dues were based off of SF numbers. Those dues go towards four main things. Our education program which I will discuss in the next slide. It is one of our biggest successes within the county and I love to share what Caitlyn is able to put together for GCW and the students here in Grand County. Uh it contributes to the GC instream temperature program. Uh obviously our database and then overall operations. This year we reached just under 700 students. The majority of that being within the county. We saw every second, fifth through eighth grader in the county

uh through our field trips. This has been going on, I believe, for 15 years. You'll have to ask Caitlyn specifically when she really took it over. Um but and you can see the breakdown of the number of students and this includes West Grand students as well. We also did a day with uh the Frasier Valley Recre Day campers. And then we had a small group from the Logan Creative School in Denver come up to the Headwater Center and GC Win helped uh facilitate their their field trip. All so again, your dues go towards our GC wind stream temperature uh sites. Little caveat there, but we can dive into that later. Each one of those blue dots represents a GCWIN site. So those are sites that are not funded by outside contracts. GCWIN deploys them, checks them every other week, and then uploads the data to uh our database for public sharing. You can see a handful of them in the Frasier Valley and then reaching all the way out towards Kremling along the Colorado River. You keep your eye on the screen. The next slide shows you all of the stream temperature sites. These are funded through our contracts with other entities like Denver Water and Learning by doing. So you can see a little bit more within the Frasier tributaries and again reaching all the way along the Colorado River. The next slide, again, if you keep a keen eye on it, you'll see more dots because this represents all of our sites, which include stream temperature, sediment testing, lake clarity, conductivity, uh oops, I have sediment on there twice. There were supposed to be macro invertebrate testing instead of sediment twice. So you can see, and I did this over 15 years, the array and

the vastness of our monitoring efforts in Grand County. And again, every single one of those sites, the data that's collected is in our publicly accessible database. That's awesome.

Um, and I think that's my next slide. Oh, it'll come here in a second. How am I doing on time? Am I okay? I think I need to talk a little faster. I know everyone's busy, so I don't want to overlert myself or overextend my my welcome. But just another a couple other accomplishments. Like I said, we did a five-year strategic plan that was long overdue uh in our 20 year run. We helped uh Trout Unlimited get their program of trout in the classroom at the high school. Um and I hear I think it's Razer Elementary. Maybe they're going to put up a webcam for the fish. So the kids at Frasier Elementary can watch the fish grow. Um at in the spring we're going to do a big release party where all of the trout that are grown in that tank will get released uh into the confluence of the Fraser River and the Colorado River. So a pretty cool program that we just helped facilitate and then trial unlimited is really taking it on. We have a new data dashboard that I'm not going to get too into the details with, but I'll explain it here in a minute because it is a huge improvement. Uh, if you are anyone who is interested in looking up data um, just for fun or for research or the county's using it for their street management plan, this new database is going to be much more user friendly, much more easy to just navigate and find what you're looking for. So, we're really excited about that. We secured over $10,000 in education grants this year, which are going to helping pay for new waiters, new equipment, new everything that we need again after 20 years of use um for the students to continue to get in the rivers and learn about watershed stewardship to help uh form the next

generation of uh watershed stewards in our our community. And then uh the most recent one we acquired East Grand Water Quality Board just last week. Um it was voted in our membership meeting which is a great asset to have. [clears throat] Obviously want to give thanks to those who helped with our strategic plan funding. All of those entities are listed there. And again for time sake I'm going to kind of rush through it. Our new GCU win data dashboard. You can already see from this screen compared to the screenshots I took of our other sites, different colors. You can see all the subwater sheds within Grand County. It is going we're working with Ellery Water out of Denver. I'm looking forward to coming back in a couple months and giving the the board of trustees a full run through of what that database looks like. But uh as a data nerd myself, I can say that it's a very needed upgrade and it's going to be very exciting for our county. And then again, I have to give thanks to all of the funders who helped that dashboard happen. We got a hefty grant from Colorado Water Conservation Board. Uh and then um our major uh funders uh did a cash match for us along with Learning by doing. As for the town, again, a long-standing relationship with GC win. Um going on 21 years now, 22 next year. Um we are the every year our budget and our membership dues are voted for at our membership meeting which takes place at the end of October. Those um items were passed last week. So the town of Frraasier with your

continued support I am projecting that we're looking at $3,250 towards your member dues. um I am waiting final SF numbers, but when I ran a little statistical linear regression model, that's kind of the trend that I was looking at over the past several years. Um and then this is where the caveat is a little bit iffy. So the for the past several years, our GC wind stream temperature program that I shared with you, that first screenshot, it was always running in a deficit. And so for the past several years, an invoice has gone out to eight different uh towns and entities to help cover the additional cost of that program. So last year it was $880. Just this year I was projecting it to be just under $1,000. Um that's always invoiced at the end of a season when I know how much time and money it's cost for our field staff to get out to all of those sites going all the way from Winter Park sanit sanitation district out to col the Colorado River. So that that is a separate thing that the town has continued to support us with. Um, I always try and keep cost as low as I can. Uh, but it it's always just built separately. So, I wanted to just let you be aware of that as well. Um, it's it's it's important. Without that additional funding, the sites get deployed and then they don't get checked all season because I can't afford to pay my field staff for that specific program. Um, and we've had issues in the past with some sites just being high visibility with fishermen. They see our rigs in the water, they may pull it out

out of curiosity or maybe because it doesn't look like it belongs there. Uh, and then we lose weeks and weeks and weeks worth of data. So, it's important that I'm able to get my staff out there um on a regular basis just to check on those sites. All right, good work. Sorry, I took a little bit of extra time, but any questions for me? Do you uh integrate with USJS? I know they have some contracts up here.

Yeah, great. Yeah, so great question. So with our merger with East Grand Water Quality Board, we are assuming the pending funding the USGS contract that they uh had which monitored I forget the number now but several sites along the Frasier River. Um and then our new database is actually able to pull all of USGS's data directly into ours. So, our new database is going to be like a oneandone spot. Northern Waters data, Denver waters data, USGS, and ours all in one spot. Awesome. Excellent. Yeah, it's great.

Do you guys work with the UC Wet group? We do not. Yeah, that's a very um I know a lot of individuals with that, but we have very different um missions, I would say. Um, but at the same time, we're devoted to both protecting our wersheds. So, but there's definitely a a distinct separation of of our entities. Looks like you guys are probably more data and they're more I don't know, funding or awareness or something. Yeah, I that that's a great way to say it. Okay, that's great. A little question. Hey, thank you. Good work. Yeah, thank you all so much for I appreciate it.

Thanks for presenting. Yeah, it's very useful. Okay, so now I would like to entertain a motion to suspend the board of trustees meeting and open the Frasier Housing Authority. Second. Further discussion? All in favor? I. Any post? Okay. Um, now up is the Frasier Housing Authority 2025 11101 authorizing issuance of one or more series of FHA housing facilities revenue bonds for St. Louis. Sarah, you'll lead us off.

Thank you. Sarah Katanzite, assistant town manager. Um, the housing authority has before them tonight a resolution that would authorize the issuance of bonds as part of the financing for the St. Louisis Landing Housing Project as well as authorization of a mortgage and indenture of trust. We have with us tonight to help walk through this and explain the bond process as well as the particular resolution our team of adviserss that the town has been working with on this endeavor. So we have Maddie, our municipal adviser with Hilltop Securities, Butler Snow has been providing um the the legal aspects of the bond issuance and then Steifel our bond underwriters. So, with that, I will happily hand it over to Daltton Kelly with Butler Snow to explain the resolution.

Thanks, Sarah. Um, Dalton Kelly with Butler Snow. We are uh the town's bond or the housing authorities bond council on the St. Louis uh project for the bonds. Um, so as Sarah said, what we have before you tonight is a resolution that actually authorizes the issuance of the bonds. It doesn't require the bonds to be issued, but what it does, and this is what we call a parameters resolution, it set uh sets forth certain pricing parameters that if um on the day that we want to go issue the bonds, um the marketing comes back and it's within those parameters, then either the chair or the executive director is authorized to sign the purchase contract to actually lock in the terms and sell the bonds. As far as the bond process goes right now, you would um if you adopt this resolution, you authorize the bonds to be issued subject to those parameters. There then is um a period um and we'll get into these documents here um in a moment, but then the bonds we put together what's known as a preliminary limited offering memorandum. That's the document that really tells the story of the town, the project, the bond issue, um what the security is. that's used to market the bonds and then you actually lock into your financing terms on the pricing day when you execute the bond purchase agreement and that would be with Steifil who's the underwriter to actually sell the bonds and so really this parameters resolution there's really three main components the first thing is that it authorizes the bonds to be issued the second is it sets those financing parameters within which the bonds can be issued and the third is that it authorizes the documents that are necessary to sell the bonds and close on the bonds funds and authorizes the signitories um to sign those. And so um I'll highlight that the parameters are set forth in section six of the resolution. And that's really the most important section of this resolution.

I'm going to let Maddie talk a little bit about those parameters and dig into those in a second. But that's the that's the box that sets forth. Okay, if you can sell the bonds within the these box in within this box, then they're authorized to be sold. The other piece that I mentioned, the other big piece is this authorizes the form of the mortgage and indenture of trust, the bond purchase agreement, that preliminary limited offering memorandum, we call it a plum or and the continuing disclosure certificate. Um the forms of these documents are available and you can review them in detail. They'll be finalized. Um the plum would be finalized prior to the bonds being marketed. The bond purchase agreements finalized once we have the terms and then the indentures finalized before closing. What the indenture is, and it's a lengthy document, but that sets forth what the security for the bonds is. And in this case, that is the revenue from the project. So we're not pledging town funds. This isn't a general obligation bond. This isn't your sales tax bond. This is strictly the revenues from the project. And so that is what's pledged to pay the bonds. There's also some covenants under that indenture because if I'm an investor that's going to buy the bonds, I want to know, okay, so my security on this is the revenue from the project. And so there's a rate maintenance covenant in there. Um, and right now that that is at um 115 is what we're thinking that's going to be. So you're going to charge rent sufficient to generate enough for debt service plus um or times 115. So a little bit more than debt service. Um that functions for a couple pieces. It gives some comfort to the investors in these bonds that there should be adequate revenue. There's also the Prop 123 equity below this and any other subordinate debt that might be in there that also generates revenue to pay those things. And so that's a good thing. If we're going to do any prepayments on these bonds, then that additional bit goes there. Anything

you charge on these is subject to your deed restrictions, subject to your restrictive covenants for your Mitech, your POP 123. And so that's part of the story that gets told to bond holders in the Plum as well. So you do have the rate maintenance covenant, but it is or the debt service card ratio, excuse me, but that's subject to the deed restriction as well. So, at the end of the day, these units are restricted to what's in the restrictive covenant, and that's that's going to be the maximum that can be charged on these. Um, for the Prop 123, that's a blended of 90 uh AMI. And so, that's what's being modeled right now. Um, the indenture also past that, those are kind of the two big pieces other than the mortgage component. And so um to increase the security and get the lowest interest rate possible on the bonds, there is a mortgage that's going to be on the property and the facilities. Um the town has the ability um at any time under this um if you want to acquire the project, you can. Um and so if there was a situation where you needed to or wanted to, you could you could purchase it. But ultimately if the um and your purchase price for that would be paying off the bonds. So I don't get ahead of that. That's really how you would purchase it. Um but um so if the bonds go into default, again, the only thing that is pledged to this is project revenue, stuff coming off the project. If that's not generating sufficient revenue, it goes through default, then ultimately that mortgage um is a remedy. It can be foreclosed upon and sold just like, you know, home mortgage or anything else. And so that's bond holders ultimate remedy. There's a few things in the indenture that is set up to make sure that that doesn't happen and that for sure that doesn't happen immediately. And so you'll see there's a debt service reserve fund that's going to be funded with bond proceeds. That'll cover debt service for a year usually is what that's sized at. Maybe a little more, maybe a little less depending on

final pricing. the the sizing on that. There's some tax rules, but the other consideration is if we have to borrow for it, increases borrowings, more interest, everything. So, so some of that factors in. There's also several other reserves built in here. Um, you have a rent stabilization fund, you have operations uh fund. Um, you have some replacement funds. And so the idea with all these reserves is to make sure we're paying debt service on your bonds, any subordinate loans that you have, and then starting to put the money back in so it can be spent on the project to keep the project going, keep it operating efficiently. You continue to pay your bonds. And so those are kind of your lines of defense. And so there on the day the bonds are issued, there's already a reserve fund there to help protect against default. There's also what we call capitalized interest to get you through the interest period until the project's built. So, there's a couple of those things, but did want to walk through that there is a mortgage on this. Um, [sighs] that's really the indenture and um the the highle pieces of the indenture. There's a lot of stuff in there about how bonds get paid, you know, and and how they get registered, stuff that's very important for the trustee, but ultimately um not not a lot of the business terms. The bond purchase agreement is what it sounds like. It's your contract with Stiffel to sell the bonds. Um you agree, they go out and market the bonds. You agree to a price. They agree to buy the bonds. You agree to sell the bonds. There's um some covenants and representations in there essentially. The housing authorities formed. We haven't sold these bonds to anyone else. We told you everything you need to know. Um that's that's really what's in that. And that's the contract that then locks in your pricing. And so, um, that's that document. We touched on the plum a little bit. Um, but that's the document that is used to market the bonds, tells the story. It breaks down what's in the indenture, talks about the housing authority, talks about the project,

it'll have kind of the pro- forma debt service coverage numbers, um, the entire funding stack here because, as you guys know, there's a lot of different sources. And so, that's really that document. That's that document that's used to to market the bonds to investors. The last piece is the continuing disclosure certificate. And so under federal securities rules, um the underwriter is under an obligation to make sure that you guys provide information to the market on an ongoing basis. And so you have to enter into the certificate and basically on an annual basis, you post your audit. There'll be certain tables that are in the plum that uh you'll update from time to time uh each year as far as debt service coverage, what was rent for last year. And then there's a few events that if something happens, you tell them if you get a rating, that's an event. If um for some reason there was a default, that's an event. And so you just let the market know um what's going on. And so that's that's the document that really sets forth your ongoing reporting requirements to the market. Um, I think past that, uh, I mentioned this earlier, but as we kind of circle back around to the parameters, um, this document authorizes the chair and the executive director of the housing authority to enter into that bond purchase agreement subject to those parameters. So, if we go out and we get pricing that's within those parameters and either the chair or the executive director could then sign the contract and say, "Okay, we're going to go ahead and sign the bonds or sell the bonds." Um, I'm happy to take questions on any of that or I can invite Maddie up here to talk through the parameters and the numbers if that would be helpful before you have questions, whatever you guys would prefer.

So, our chair and executive director, Michael, both one. What's How's that work? The chair is the mayor. The chair is the mayor. Okay. Yeah. And then Michael, we talked about having you as executive director. Has that been official? Did we formally adopt that? Yes, that's been approved by the board. Okay, great. Okay, I remember that but not really clearly because I don't remember stuff. Good. Thank you. Any questions? We'll let Maddie come talk about parameters and then if if you do end up having questions on bond bond documents, I'm clearly still here, so let me know.

Okay. Good evening, Mattie Panovic with Hilltop Securities. Nice to see you all again. So, um, I'm going to chat a little bit about those parameters, but also what's actually weighing into how much we can borrow for this project through the revenue bond. So, as Alton mentioned, the parameters are really kind of the box that we have to fit within in order to be able to issue the bond. So, as an example, the maximum PAR amount that we have in there is 45 million. If for whatever reason we were able to get to a place where you could conceivably issue $50 million, as an example, we can't proceed with that, right? you cannot enter the the uh as Dalton mentioned, it delegates authority essentially to enter into that bond purchase agreement. We can't do it if we're not within those parameters. So, the parameters are very important. That said, we've intentionally drafted these parameters pretty broadly compared to what we actually anticipate being able to do sitting here today to give ourselves maximum flexibility as we're working through the final sources of funds and uses for this project as we kind of go through this last month, two month, two months, three months of of the actual financing. So, as an example, um that parameter for the PAR, so the maximum amount you can borrow essentially right now is 45 million. sitting here today, we're really more at about 37 million of borrowing. So, we've got some cushion there on the the upper end. Our term right now is sitting at uh we have a maximum term of 2066, so technically 41 years. Um but really like 40ish uh realistically, and I think we talked about this when we were here maybe in August or September, we're probably going to end up with a 30-year term, although we may have a 40-year amortization structure on there. and that's to align with some of the repayment requirements of the Prop 123 equity because we need those to to align. Um the other is the net effective interest rate that's in there at 7 and a half%. Um sitting here today we're hovering at around 630, but that obviously will change depending on the market as well as investor feedback. And so the parameters are important because

we have to stay within them. But really what we're able to borrow for this project is dictated by the proforma um and what that will support as well as investor demand and acceptability for the credit. And so as we're and Dalton touched on this, you know, we're we are structuring this for a 125 debt service coverage right now, meaning revenues are annual projected revenues in the perform are 125% of our anticipated debt service costs in any given year. Those bonds do fund capitalized interest. uh for a period of time through construction um kind of off and on through throughout that first three years or so post uh post issuance. Um it also funds a debt service reserve fund as Dalton mentioned that's essentially the backs stop if revenues in any given year are not sufficient to pay for that debt service. So um that that doesn't automatically essentially trigger some of these other events of default. Uh but the other piece of that is we are assuming um obviously some you know assumed growth of of uh net rental income over the next 30 to 40 years. We do have a vacancy rate um built in there and all of those are pretty market standard mostly also driven by Chaffa because there's Prop 123 money here. They have certain underwriting requirements that we're essentially maintaining throughout the proforma. So from that perspective sitting here today that all is reasonable and and something that the market is used to seeing so to speak. These don't get done every day, but when they do get done, these are kind of pretty standard terms that we have in there. Um, and that is what's going to, as you might imagine, like if you're going to borrow funds for a mortgage, right, to go buy a house, like you say you can budget, let's say, $3,000 monthly to make a payment, well, that's going to restrict the amount you can borrow and the size of the house, right? And so we're kind of in the same thing here where we have projected annual revenues and then we have these coverage requirements that we need to make s make sure that are in place. And so that will cap what we think we can borrow which

again sitting here today is about $37 million which would be about $28.5 million towards the actual project. That differential is that capitalized interest fund, the debt service reserve fund and then some costs of actually issuing um the bonds. And so where we are sitting here today cuz um surprisingly has been two months I think since we were back in front of you even though it feels like it was just yesterday. Um uh we are um in the process of finalizing the documents that Dalton mentioned. Um Matt is still working on the Prop 123 negotiations and hopefully getting a commitment letter from them before the end of the month. Um, also working through some of the Mitech funding and structuring and some of the legal nuances behind that to make sure that gets worked into our documents. And so, uh, we are really plugging ahead and going, uh, as fast as we can to try and get the funding in place. We're targeting to try to be able to sell and close these bonds before the end of the year, but depending on some of the timing around Prop 123 primarily and when they can actually get stuff back to us, that may slip into early next year. Um but we're on a good path and and progressing forward. So um I Allan with SEL is up here um and he's an excellent resource and uh is going to chat a little bit about the market um and also just sort of what the underwriter does in this because they haven't obviously been here to chat about this before. But before handing it off to him, I'll pause if there are any questions.

Michael, anything that I was supposed to cover that I didn't touch on? That's good. Okay. And Maddie, what is your what is your role for this? Yes. So we are a municipal adviser both to the town and the housing authority in this instance sitting in front of the board of the housing authority. We are uh municipal adviser to the housing authority. So we have a fiduciary duty to you to ensure um that this transaction is being executed under you know your wishes, your goals, objectives and then we will help through the pricing process to kind of help negotiate make sure you guys are getting a fair deal. And then once it gets rolling, will you also do do we hire them like for you for council or um to make decisions on when we're going to purchase or sell bonds and that sort of thing? So they'll be negotiating on our behalf for that.

Okay. Um you know, and these all these kind of professionals work together as far as you know, Dalton's role for bond council. Um and Allan, which you'll explain here in a minute, just as far as his role with the underwriting process and selling the bonds. Yeah, we'll have you for the long run. Yes, I'm that's what I want to know. You can't get rid of me. Um legally under the contract, but um yes, so we we'll be here through the whole process and then we'll help through the pricing and so we'll have kind of direct communication with Michael and Sarah to make sure they're comfortable with the process and the interest rates being proposed by Stiffl and that we're okay with them and and making sure everybody's kind of copetically.

Okay, good. We've been having weekly or bi-weekly meetings with them and the team just to make sure everything's on track and addressing challenges as I Great. Thank you. Great. Good evening. Alan Matlo with Steel. Um so as was mentioned, we're the underwriters. So to define the roles, um there Snow lawyers,

not lawyer. Um Maddie adviser to the housing authority and the town. Stif is underwriter. So our job is to sell the bonds at the best terms, but but the municipal adviser makes sure we do it correctly. So we work together to get these documents put in place to structure the bond issue and then we present that to as many investors as possible to get as much demand for those bonds as possible to drive down the interest rates. Um Steel does this all the time. Um um so we are in the market all the time. Um we had I edited up we had 36 deals this week. I don't know how many we actually are pricing this week but as of Friday there were 36 nationally. So um we're talking to investors all the time. We have reviewed what we know about the structure and we're com confident of the ability to sell the bonds at what we've been talking about based on all the progress you've made, all the grants you've obtained so far, the status of the project and all those other assumptions. So once we get the documents finalized then we have a two to three week period and that's the what Mattie was talking about the timing depending on how fast we get the information back from Chaffa is that will depend on how quickly we get the documents out to investors because you want to be able to tell the whole story. Um, we questions, excuse me, take questions from investors, talk about the project, and then we set a pricing date. And all of this work, all of these years comes down to a 90-minute period on a Tuesday, Wednesday, Thursday morning where we sell the bonds.

Um, we want to get enough demand to um, sell all the bonds. Then we present back to the housing authority the terms. That's the interest rate, the amount um reviewed by your advisor. And then if you're happy with those, that's when the bond purchase agreement is signed. So what really happens is Steel purchases all the bonds from the housing authority. The terms are locked and then we sell those to investors. But if for some reason an investor didn't pay or something, which happens occasionally, that's our risk.

That's the underwriting part of um of the transaction. Um and then we sell the bonds and we close as rapidly as we can. That money is then um available through the trustee um to be drawn upon for the project. So little bit, you know, there's some complexity here with the different funding sources. So we're a lot of the time we spend on these weekly meetings is to try to make sure we understand all of that those complexities so we can make sure that we're checking all the boxes and that these bonds can move forward um as we understand it. So also happy to answer any questions. That's good. Does that help a little bit in terms of the roles? It does. Thank you. Yeah.

Great. Thank you. I will give the public a chance to talk, but um Matt, you're on. I I didn't know if you wanted to put in your two cents. No, sorry I'm not up there with you. Um I the folks that are that that that uh are there tonight certainly have the uh subject matter expertise for what you're discussing, so I thought I would stay out of their way. All is well.

Sounds good. Thank you. All right, board. Any any questions, discussion? Okay. Um, I'll open it up to the public. Let's, uh, let's try and keep it to five minutes and then we can repeat as as needed. So, um, anybody who wants to jump up, go for it. Uh, Quinn Freder, um, just because I'm in the world of sales all the time. What are some of the reasons the bonds would not sell? I know some bonds don't sell, so just want to check on that. Also on the AMI, I believe the restriction was 80%, they said 90. Did that change? The average is 90. Average. Okay. Yeah.

Um, if the project, because we've had a couple in town go into foreclosure, Box Run being one of them. If it does go into foreclosure and it gets sold, do the restrictions stay on the units or they become free market? Anybody know? Box Run became free market. Mercy Housing got bought out before it went in. There's there's currently a land use covenant that is recorded on the entire property that 50% of all residential units have to be at 120% and below even if it goes into foreclosure. It's recorded on the property. So, okay, they can maybe speak a little bit to that if they want to, but that seems to be pretty permanent in my understanding. Right. So, the only thing I didn't have is uh nobody answered why the what happens at the bonds don't sell. Yeah.

Sure. Alan Atlas again. Um first thing really sad a really sad day. bonds don't sell. That was really sad. Um so that's that's that's kind of what I do. Um so so why would bonds not sell? So um

there there could be um a market disruption. So we've had these in the past where things have happening in in financial markets that have caused investors to be wary of of of making such investments. Um, but what really could happen is that the investors would be requiring terms, either interest rate or other terms that either don't fit within the structure of the bonds or are not acceptable to the housing authority for some reason. Someone says, "Well, I'll buy the bonds, but I don't know. I'm not sure what that would be. They could recommend something." So, we'd have to come back to the housing authority and and talk about it. Um we're hopeful that based on our knowledge of the markets and other deals that we're in the right ballpark. Um but that's really what it is is we go out to market and you know nobody comes to the party. Um we we do this a lot. Doesn't mean that we're perfect. Um but we feel like we have enough experience and knowledge to have do a successful bond issue. But you're right. You don't know until you know. That's fair. Alan, if you were to is the approach to ensure that all bonds are sold or none at all?

So that's a fair question. So um there's a couple options. So you could yeah the the goal would be sell all the bonds. Okay. Um but there could be a circumstance where we get to the point where we get some percentage of the bond sold and there is a provision that you know we could sell the next set if something happens like if you finish the first building we could sell bonds with a restriction that says you know 75% of the money is released but the last 25% has to see a certain goal met I mean there's a lot of things you can do but yes the goal is to sell them all if we can't sell them all. We have to come back. We'd come back and say, "This is what we have."

Is that acceptable? But, you know, there's a cost to the project and building, you know, twothirds of a building or whatever is not helpful. So, basically, we that, you know, let's just talk about the scenario a little bit. Um, if that were to be the case, then we could look at altering some of the construction timelines to make sure that we're not building things that are not supported by senior financing. Right. Right. Okay.

You do it you could do it in phases, financing phases. um probably not preferred but you know we'll have to see. Um one of the things that I didn't mention and hopefully is helpful is this time of the year. So the biggest buyers of these types of bonds are uh mutual funds. So like you might have mutual fund in like a retirement account or bond mutual funds. Um there are insurance companies especially life insurers. This is the one I always like to describe. It's one of the few places where the uh seller and the buyer have the same goal which is not to die. um they don't want you to die, you don't want to die. So they take all those um uh annual premiums and they invest it

and they invest often in tax exempt bonds and then money managers. Um a lot of money comes back to them um November, December and January because that's when we have payments um which are made. So there's a lot of money coming in now to the market. We're hopeful that we can um get some of that money as it's waiting to be invested. So,

and that's reflected in our budget. Mattie has helped us with that as well. So, uh when you look at the debt service fund, you will see bond proceeds, coop proceeds where we're essentially investing this money into a conservative, you know, collar trust or something comparable to it that can generate like a 4% interest rate return um which helps offset some of the initial costs especially with the project. Okay. And this is for stage one. Phase one. Yes, this is funding for stage one. Yeah, this funds three buildings, the road and bridge across and all the infrastructure related to phase one. Yep. Great.

Thanks. Anybody else from the public? Oh, you want to jump in? Yeah, on the deed restriction piece, just as as the attorney, yeah, Michael's right. If it's recorded before the mortgage, it it survives foreclosure. Usually Chaffa with their deed restriction for the Prop 123 funds, they want it recorded so that it doesn't go away with foreclosure. And so um in all likelihood, all deed restrictions that are going on this property will survive any foreclosure. So that's the way um Chaffa requires it. That's the way your current piece set up and that's a risk to the market. So that's something that's also disclosed in the offering document of even if you foreclose, here's your deed restriction. So

Don, is there a scenario where I mean, how would that even be lifted? How could it how could someone remove that land use covenant? The one who's the beneficiary of the deed restriction has the legal ability to remove a covenant or a deed restriction. Um, so I think you said the first one's a covenant that the town put on and then the other one's Chapa. So was that Well, Dola put it on or do was it Dola that gave us the turnkey grant?

So would Doola have to will they have to work with DoA? Yeah, they would have to work with Dola at that point. But that's and that's why Chaffa has these go in front of um senior financing is they deliver um deed restricted housing uh either for sale or for rent and it's a more durable covenant if you put it that way. Um and so um yeah, it would have to go back to that party. Yeah, and that's a good point because uh the initial grant that we got for it for $3 million and 40,000 3 million40,000 from Doolo, we've satisfied, we've closed that grant out and you know their primary thing they want to see was the the land use covenant recorded with the county for this property. So even if it were to default, they've invested that they've secured this land that it has to be built to meet these certain terms. Um so

okay, good. Looks any more public? Hi, Clark Lipkcom for the record. How is everyone tonight? Good, good, good. How you doing? Uh, I'm okay. Long day. Um, so Michael, on the debt service fund that you mentioned, that's on the Fraser Housing Authorities books, right? You just mentioned the debt service fund, and I know we're talking about budgets. I just want to make sure that we're clear. This is Frasier Housing Authority, not Town of Frasier. Correct. Correct.

Okay. and and I'd be I think it's interesting that the bonds are subordinate to the lura. I think that's great. Um I would be surprised that you don't get push back on that, but um I guess it probably depends on the pricing and the interest rate. Um I I think one of the core questions I have is, you know, has this board seen the draft proformas for this project with the debt service plugged in and with the assumptions? Have you presentation? This was from August with the public board meeting.

Yeah. And and did that assume um what I think is $28 million of net proceeds on a $37 million bond issuance with all the reserves? That was kind of the assumptions in that. Okay. And so, you know, just simply looking at this from my very simple math perspective, we got 129 units, I think, is what Michael told me. So, we got 129 units and we're going to float $37 million in bonds, 6.3%. crude math and and these are paid the bonds are paid annually I think in September, October, November roughly, right? But that payment with a 30-year ammo, maybe you get a 40-year ammo, but it looks like to me it's $229,000 a year or no, sorry, 229,000 a month. So, times 12. So, it's roughly 2.5 2.6 million. Is that right?

Right. So, just like thinking through this and kind of looking at the mill apartments and kind of some of the expenditures and things that we've had there, that equates to roughly $1,775 per month per unit just for this debt service piece and not any other units. And you've got a mix of I think I don't know what your product mix is. I would assume it's in your pro for onebedroom, two-bedroom, three. Are you doing studios? in the August. Um, yeah, we have some studio, but just general blended average, just even in a one, two, three bedroom mix in this market,

$1,75 a month is a tough number to achieve. What sort of vacancy rate was assumed? 7% vacancy. So, so we're going to be 93% occupied uh annually. So, um, that's probably goal if you don't undercut us. [laughter] For the community, I have no incentives. This isn't competitive. I'm I'm all about having a successful project and protecting the town of Frasier financially, and this is more about fiscal responsibility and do things work.

Um, I think it's great that the town's building housing. The more the marrier. Let's build tons of housing. I think it's it's fantastic. I just want to make sure that the town of Frasier in no way, shape, or form as a municipality is on the hook or is covering shortfalls when those happen.

I don't think our taxpayer money I don't think most of our citizens would look favorably towards our taxpayer money subsidizing this. And I think there's a lot of people even with the $250,000 a year commitment for I think the next 10 years. Uh there's people questioning that and was that really, you know, something that we should be doing? And I know that's committed and it's probably in the perform uh assumptions, but but one of the things that I'm concerned about um having I've been here for a little while. So Foxrun [clears throat] um was a low-inccome housing project and our mayor prom was on the board of Foxrun. Fox Run went bankrupt. Um Chaffa got wiped out on their loan. Uh the town had a loan for tap fees. I think it didn't get repaid. It got wiped out. And the lura got wiped out, right? Right. And so it went free market, but it predominantly happened because the one couldn't keep it full, but it fell into a state of disrepair. It was poorly managed. Um there was a lack of maintenance and they didn't have enough revenues to fund the maintenance, which you can see where I'm going with this, I'm sure. Um and and so that property ended up selling for a relatively small amount of money. Kind of I I classify that as as you know, the project built for all the wrong reasons, right? They were given land and the land was a very tough piece of land. I mean, you guys know the retaining walls

and the springs, natural springs,

not great. Um, I would not have built that project there, but regardless, it got done and it got done as a low-inccome project. It ultimately failed um was foreclosed on um and got wiped out, resold to the market, rel1. It was a really cheap sale um for the number of units. The person that bought it ended up having to gut pretty much every unit, full rehab. um today it it's still serving our community. It's great. I'm happy it's there. Um it's largely leased to the ski area uh on a market race basis. So sorry, but what I don't want to do is see this turn into that and and the concern that I have in the performance. You got a really complicated capital stack and I'll wrap up really complicated capital stack and I'm concerned that just this debt alone is more than the project can handle. not factoring in maintenance and utilities, which is one of our biggest expenses at the current project. And when you add those in at realistic levels in this market, can this project succeed at the rents that are projected? And and you know, I'd hate to see the town go, well, oops. We just got to raise the rents. Raising the rents is not a great solution for every increase in costs. So just that those are my concerns and um I'd like to see the proforma just to study it and see how it works because it's pretty complicated. Last one last question is this dependent on the prop 123 money coming in this bond issuance. Okay. So all right thank you all.

Thank you. Thank you. Anybody else from the public? Okay. All right. Housing Authority. Do you guys have further questions? No. The 28 million net proceeds Oh. Oh, we can't hear you. Yeah. Just hop up to the mic. It's fine. Yeah. Is the 28 million net proceeds enough to complete the construction of the 129 units? That's a question for Matt, but yes, it's in the full capital stack. Matty's reviewed as well. Maddie. Okay. Okay.

With the rest of the staff. Come on up, Maddie. Yeah. Thank you. We love you. Yes. So, uh there, as you mentioned, it is a complicated capital stack. There's a lot of funding sources in this, but that 28.5 million with those other funding sources as they're currently identified and uh estimated uh is sufficient to to fully fund the project costs. Obviously, those are still a bit of a moving target as well and that's what we're kind of working through over the next month or so here.

So, Matty's Matt's been working as kind of a lay on between like Matt Ginsburg has been heading up the financing for the project to relay things to SEAF and to our bond council and to our special counsel to make sure that everything's on track. Take into account the performant that has included maintenance and uh utilities and property management services since the beginning of this. Even the RFQ included the requirement to have property management services which I know will be its own bowl of wax we'll get into at some point and uh negotiate the best deal for sure for the project. Um

yeah and I can say you know Chaffa um as well as a bond investor is going to require a repair and replacement reserve which you'll see is in that indenture and there's a set amount per unit that has to be contributed to that fund per month that obviously will cover various upkeep and maintenance needs. I will note, we've talked with Michael and Sarah about this, that that is probably not sufficient to cover, you know, some of your big ticket items that might happen in that like, you know, 10-year kind of time frame, like if we're replacing a boiler or roof damage or things like that. Um, and that is something that we've chatted with butler Snow about is including some additional uh funds within the flow of funds. So essentially capturing like every dollar that we can that comes out of um the project itself before we have to repay equity to be able to fully fund other uh sources to be able to cover those types of those larger uh maintenance and capital repair costs. Uh because this is a housing I just want to be very clear this is a housing authority uh obligation. This is not an obligation of the town of Frraasier. Um there are structures like that. we call it a moral obligation pledge where essentially the town can commit to um consider appropriating funds to replenish a reserve fund if it if it is drawn upon. So essentially if revenues are not sufficient to pay debt service we are not doing that here. Um so it is a housing authority obligation and obviously the goal is and and the end result here that we want to see is that it is fully functioning operational and fully capable of supporting itself. So, um, we've been really intentional as we're working through the indenture and flow funds and working with Matt on his perform to make sure that those funds, um, are sufficient to do that.

Okay. And Matty, that reserve account. Matt can talk to insurance. [laughter] That's not that is not my Sorry to keep insurance has has ballooned in our marketplace. And Matt, you know, have you gotten real quotes for insurance in this location for the buildings? cuz I got a big insurance surprise and I don't want y'all to I mean you might as well learn from you know surprises we had and and you know you don't want to have an insurance surprise. Hey we did and it it's gone up over the course of the of the three years we've been doing this but it's accounted for Matt. Yes.

Okay. So I mean just the the folks in the room that that ultimately in one way or another represent the the bond buyers not not not represent capital R just represent in the sense that that they're advising you you know they they go over this the bond folks that buy the bonds go over this the all of the other chaffa monies and other other people in the capital stack go over the the proforma um you know you passed it by uh Castlewood who went over uh there there was a a meeting with a number of other developers in the area I think that that had at least some sense of what there's been a lot of eyes on the performer and we could you know we keep it pretty up to date so um it it it appears to be in line with reality

thanks Matt right okay anything else 30 cash flow some point

cash flow free cash flow the housing authority like can it build equity and say pay off this like can you repeat his question for the

yeah so the question is is there any free cash flow that comes off of this project that goes to the housing authority that can be used essentially to support other projects uh the answer is yes the that's the short answer the longer answer is um there's not a ton mainly becau at least in the first, you know, 30 years essentially as we're trying to pay all this debt off um because we're trying to advertise it quickly and minimize the interest costs that are being paid on the project. I also will say the Prop 123 equity structure is there's not a required repayment on an annual basis. You obviously owe the full amount back at the end of that 30-year term that I think we talked about last time we were here. Um but they do require a certain percentage of the annual cash flows coming off the project. So you are somewhat incentivized to keep the funds within the project to sort of capture as much of the revenue for the project itself as opposed to distributing it to Chaffa. So that has been the primary objective as we've been setting up these documents to try to maintain as much money as possible in the project. Yes, there should be some funds flowing out to the housing authority. Not necessarily sufficient to kind of leverage for anything else. maybe some stuff in the future on annual basis to potentially support other projects. Um but these funds can't be used to leverage towards other projects realistically given some of the covenants that are in the bond documents.

Okay. Okay.

Okay. Does anyone want to make a motion for FHA 2025 11101 authorizing issuance of one or more series of FHA housing facility revenue bonds for St. Louis? I will make the motion and I'm going to qualify it too by saying that um it's it's a little scary but we're committed to building this project. I think we have a fabulous team working for us and working with us and um this is our this is the path that we have to continue upon to keep it rolling and get those buildings finished and occupied. So I will make that motion to approve um Frasier Housing Authority 202511-01 authorizing issuance of one or more of the series is this is that the right number?

2025 11101. Yeah. Yeah. Okay. Series of um authority revenue bonds for St. Louis. I'll second further discussion. Um, I'd just like to make a comment that I don't want to throw money at a bad project, but I don't think this is a bad project. I think, like you said, we've had a lot of really good council, and people wouldn't buy the bonds if if it wasn't a good project. So, I'm confident that it'll it'll be successful. Yeah. All in favor? I. Any oppose? Okay. Thanks. Passes.

Great. Thank you all. Thanks for the Yeah. Safe drive home for all the help and the public comment. Yeah. Okay. Uh can I have a motion to close the Frasier Housing Authority and resume the board of trustees meeting? So moved. Second. Any further discussion? All in favor? I. Any opposed? All right. We are back. Okay. So now we need a motion to open the public hearing regarding ordinance 528 nonfunctional turf prohibition. So moved. Thanks. Safe to appeal. Appreciate you guys. Motion on the table. Is there a second?

Second. Any further discussion? All in favor? I. Any opposed? Okay. We are now in public hearing for ordinance 528, non-functional turf prohibition. Allan to present.

Good evening, mayor and trustees. I'm Alan Celiff, assistant town planner. Um, tonight I'll be presenting a chapter 19 amendment on the prohibition of non-functional turf. Um, and just a a little bit of a clarification um, in the title here, this isn't an outright prohibition, but in applicable properties and circumstances. So, we'll we'll detail that out here in the preceding slides. So, this code amendment comes from um, state state legislation Senate Bill 2405 and House Bill 25 uh, 11113. Um these relate to um encouragement of water-wise landscaping, reduction of uh high water use and non-native landscaping um specifically turf and um non-native and invasive plant species. So these are um to to encourage you know in terms of greater uh statewide policy of water conservation and um general sustainability practices. Um it limits artificial turf or development types um due to several environmental factors. Uh urban heat island effect is is cited storm water runoff quality concern. So artificial turf is wrapped into this as well. Um and then um just sequentially the uh Senate bill that originally took into effect only applied to non-residential property. Uh the House bill passed in 2025 added multifamily uh developments over 12 units. So kind of larger scale higher density multif family residential. Um tonight's ordinance went through the went to the planning commission in September. Planning commission recommended approval on September 24th

with two conditions of approval. Um the conditions just related to providing additional information related to artificial turf um and some of the storm water concerns and um acceptable turf uses. So these these conditions are why there's maybe more um more references attached to tonight's package just to provide additional material that was available um from some of the groups uh helping helping the state implement it um in terms of reference guides, research um background research and additional information. So um you can see that referenced in the staff packet in the staff report. public notice was published in the October 22nd um Skyhigh News and then proof of publication is here and provided in the packet. So just some visual examples to kind of kick off. This is the type of landscaping that um that is being encouraged and what the regulations are seeking to um to encourage at larger scales and uh reduce the alternatives kind of the more traditional turf. a wide variety of ground covers and plantings. It isn't necessarily prescribing um a one specific design or anything like that. It's just um requiring it a little bit more uh foresight and and planning into landscape lands. And then the the land uses this applies to. So, um, non-residential land uses, this can be commercial, industrial, institutional, campus settings, kind of the a wide variety of non-residential uses. Um, the update is that residential uses over 12 units that now applies for. And then additional kind of public concerns or um other types of uses like transportation corridors are is specifically included.

So, highway ride ofway, street rideways, landscaping medians, that sort of thing. So, the amendment is uh proposed to add a new uh section E to the landscape and screening section and the um development regulations. Relatively straightforward based on the state legislation requirements. Um it states a prohibition on non-functional turf, non-functional artificial turf and invasive plant species in applicable properties which are then um outlined and defined based on the state statutes. Uh a section two is included to state kind of in clear language what um what properties aren't included. So this is residential uses under that 12 unit. So this is all single family, two family, triplexes, town homes, uh smaller scale, multif family. These regulations don't impact that whatsoever. Um and then more public uses, public and private, but uh functional uses are defined. So civic, community, recreational uses such as parks, athletics, athletic fields, event spaces. Um there's kind of a list of representative uh uses, but it's a such as and not limited to uh sort of language. So additional sorts of uses as long as it generally falls within the definitions and the examples can be considered functional. And then there's also an additional carve out for um engineered designs for civil infrastructure projects that may um may be able to utilize uh artificial turf or or uh higher water use turfs. And then the definitions. So the state legislation includes um a number of definitions. we needed to carry them over in order to um

in order to properly define all of these and and have everything consolidated in one place. That way we're not referencing multiple state statute locations and um it would really impact usability and understandability. So, so I'll go over a couple of the definitions um um here. So, new development, like I said, explains new construction project and the applicable land uses and then it ties it to an approval process. So, for us, it's building permit, it's site plan review. Um it could be a final development plan or other design, anything that triggers a design review process essentially would be subject to this. And then it does include redevelopment which uh lies on the same approval processes um for projects that would disturb 50 more than 50% of existing landscape areas. So just visually functional versus non-functional on the left here athletic fields is an example. It's kind of an obvious one. There's there's certainly other examples. And then on the right is the the transportation corridors that um I mentioned before as just prohibiting kind of large scale all turf things that would have to be irrigated and isn't isn't used by um by any users people or if it was a infrastructure requirement. So the uh code requirement or the code of ordinance includes the definitions. These are carried over um again so it goes over turf just kind of a general um definition talking about uh continuous plant coverage um specifically that it's um the ones that are prohibited are ones that are not hybridized for aid conditions or kind of local climate. So,

um things that are are um are allowed. Uh functional turf. Again, here's where the examples are included. So, playgrounds, sports fields, picnics, amphitheaters, etc. Um those are all considered functional and um we as staff anticipate being able to apply a fairly wide um interpretation of that as long as uh that justification is provided in a landscape plan and um identified. And then non-functional turf is is the rest of it. So things that aren't functional um the transportation and the or the infrastructure projects that you know of designs that have been discussed. So a little bit of additional information provided on like turf and grant species. There's a whole host of uh resource guides from um from the state and from these um these uh kind of ex uh subject matter expert groups uh that we as staff will be able to utilize. Um landscape architects will be knowledgeable um or we can help refer them to it and kind of connect the dots. It'll be a learning process for staff obviously, but um there's there's resources to refer to um things that'll qualify as as water- wise, you know, they they don't require the high amounts of irrigation. Um some of the reasoning behind it, it's um they increase uh useful kind of food for local ecosystem and shelter for wildlife and pollinators. more reasoning to to encourage these sorts of applications. A list of several different types that um I believe would be acceptable at this elevation that one of the reference guys guides is specific to mountain environments over 7,500 ft. So um obviously that'll be what is um is referenced and suggested.

Ellen, yes. What kind of a mix do we have here on our lawn here? Yeah, I suspect that that's one of the traditional high irrigation okay uses. Um I don't know but I don't ballfield a useful area that would be permitted but okay if there's any sort of like larger redesign that would probably have to be scrutinized a little bit in terms of which areas are actually used as event spaces versus just ancillary areas maybe on the edges that would have to be lots of public spaces and park areas are are exempt from this. Not exact acceptable to have a usable turf. Yeah. Rather Okay. Good. Rather than as you would see. All right.

And here's another example from one of the other reference guides in the packet. Just a the kind of a comparison matrix of different species and then different considerations on maybe when it'd be appropriate to um to be utilized or not. Um yeah. Moving on to artificial turf. Just a couple of visual examples on the left of potentially an artificial turf putting green. Totally fine. But then if you know we're implementing it in a commercial parking lot and just a in between the parking spaces, this would be deemed non-functional. An example of non-functional turf. It's not being utilized by, you know, for a recreation use. Um, moving so including the definitions here. Um, the artificial turf definition is pretty fairly straightforward and broad. It doesn't get into technical um design specifications or anything like that. So, it's just synthetic materials to resemble natural cra natural grass. The functional and the non-functional definitions are very similar to the turf um you know allowed where useful not allowed in the other circumstances. Some of the questions from the planning commission had to do with uh you know why artificial turf? What if the technology improves to address some of the concerns I think, you know, I'll put on this slide of, you know, different materials may react differently to produce different levels of urban heat island or might in the future solve or better address some of the runoff concerns, um chemical leeching concerns, things like that. And ultimately the technology may and hopefully will improve. Again, um the the state requirements and the code ordinance isn't an outright prohibition. It's just a uh prohibition in kind of these larger scale uh development

contexts kind of regardless of the technology. So if the technology imp improves the current state definitions and legislation don't allow for local ordinances to supersede that or to undercut that. The the the requirement is what it is and you know hopefully any increases in improvements in technology as they're still implemented at smaller scales are are personal scales people's backyard. You know that's obviously still beneficial to the the environment in the community. Just running through these um yeah, POS was related. I know our um our water department is well aware of of those concerns and um updated federal regulations on that. Those are forever chemicals that are have often been included in these artificial turfs. Um some of the other considerations are impacts to soil quality, especially at a larger scale. It it starves the the underlying soils of water and light. Um and then longer term implications of you know relatively new technology but what happens once once these are disposed of replaced just it's increasing kind of the um the ground cover that isn't a naturally degradable product. The last couple slides here um just your thoughts on implementation and impact. the um the town is required to implement uh these requirements for the Senate bill at least which was the bulk of them by January 1st, 2026. The add-on of residential contexts over 12 units isn't required to be uh implemented until 2028, but we're rolling these into one single update um just for efficiency. Um they can be potentially be more restrictive. uh this ordinance is not not proposing anything more restrictive than the state requirements. So at this

time at least we would definitely um prefer to implement this BA as a baseline. But if there's interest in potential additional regulations or additional land use types that could be uh implemented into a future code amendment um if that's a policy goal from the town. There is you know we ran the question by the town attorney. Obviously, there's legal risk of us not being compliant with state regulation. There isn't specific punitive measures included in the state uh adopting legislation, [clears throat] but in general um it would expose the town to risk of challenging potentially challenges to approved um developments or plans, increased oversight from the state or other entities um and potential impacts to grant funding. Should grant funding be specifically tied to this either currently or future grant funding? Um, as I mentioned a little bit, you know, this will add a little bit more um more scrutiny on the town side. We'll have to review landscape plans and with the specific lens in more detail and then applicants will will need to be responsive and be able to address it in terms of, you know, before if it was kind of a simpler plan of all turf that that won't that's not going to fly now. they'll have to be a little bit more thoughtful in application of of high water use turfs and broader artificial turf. And then um just a a a note here that we do have a cross reference in section in chapter 14. That's why chapter 14's also included because there's landscape specifications included there. We wanted to insert the cross reference to ensure that it all tied back to this um this ordinance language in chapter 19. So, um that concludes my uh presentation. Um obviously staff is recommending uh approval of this ordinance 527.

I have a question. So on our agenda it says 528. So what's the correct number? This might Sorry, this is probably a carryover from my presentation last week. Yeah, it' be whatever's on the uh the ordinance on the agenda. 528. Okay. So maybe I should double check. Apologies on that. It is fashion on the agenda. Okay, we're good. And then this would it would be a 30-day um take effect period. So once it's published in the newspaper, earliest would be next week, it would take effect 30 days from there in 202.

So happy to answer any questions um either now or following any public comment. So Allan, I think this is uh commendable. I uh I think it's the tip of the spear, right? Um I I believe uh we also have ordinance 371 that was approved in 2007, which is a water conservation ordinance that says there's no watering between 9 and five. Um and it defines penalties. Okay. Um it has other provisions as well. I think that ought to be brought up to date uh to be congruent with our water rights and potentially as a as like an ongoing policy.

We have a code enforcement officer and I see uh irrigation systems running all day long.

And so I'm going to get into our water rights as well. I have uh demand estimates from our water supply stuff here. It basically says we have an irrigation season of 153 days in both systems. Um and it defines it basically breaks down the math so that in rendevous and grand park each SF gets 17 gallons a day to irrigate with. One sprinkler head blows that away. It also says that they have 250 square feet of irrigatable space per SF. So, I mean, when I see entire yards being watered, we're we're killing our water rights. [clears throat]

So, and I can tell you our water commissioner. So, I I'd like to see this effort go a lot further. On the Frasier side, we get 500 square feet of irrigatable space per SF. And uh it's actually same same irrigation season. We get a slightly larger allocation, but it's over twice the space. So, it's not even linear. We get in in the Frasier system, we get 25 gallons a day. [clears throat] You look at it on a weekly basis, that's 120 gallons. That's not enough to have a a green lawn. That's that's not even I mean, that'll evaporate. You I think we need to put some serious effort into getting our ordinances and or enforcement in line with our water rights. So, so what you're articulating here is our current uh landscape allowances and policies are are allowing from a land use perspective far greater than what our water right we'd be able to yeah that would definitely be the baseline

it's in terrible our reservoirs are in terrible shape you know we're lucky to be in the headarters but I I do know that the water commissioners and the state engineer have brought this up and and they're aware and all you have to do is they drive our neighborhoods. They can call out our water rights and say that we're exploiting them. Um, so I I would challenge staff, Michael, to uh look at the bigger picture, look at our water rights and look at what we allow and uh let's get this in line. Obviously, obviously, I think this is a great beginning. I I I I do commend you, but I think it's again tip of spear.

Say, yeah, the state legislation obviously it's statewide. It's it's as wide of a net as possible for all kinds of different circumstances. So if if the needs are there more appropriate, we absolutely and uh we allow anything and yeah, when I drive around, you know, I we have I think our fines are $25 an occurrence. I I think I mean we've got irrigation systems at the top of rendevous that I think have 16 zones.

You know, they set off fireflow alarms when they go off or used to. Uh yeah, I think uh and I mean we're we're paying them basically it's like six bucks for to pump water up there for a thousand gallons and we charge a $150. So, we're paying them to break the law, break our water rights, not the law, but Okay. I I think how about if we carry that on at a future meeting? Yeah, I I absolutely valid. Thank you. This this deserves a lot of attention in this day and age, water conservation series,

and there will be additional code amendments coming in 2020 specifically related to uh like fire, new fire requirements for fire mitigation, wildfire mitigation, and some of that. Um I believe we'll get into defensible spaces and and land more land use policy. So that'll be a smaller but another kind of angle of it in which we can look at it and then obviously something more specific to the freighter potentially you know.

Okay. Um within the ordinance it's um references Senate Bill 24005 requires local governments enact corresponding regulations to be effective January 1st, 2026. So the state wants us to adopt this by then. Right?

But then it says House Bill 25113 requires local governments enact corresponding regulations to be effective January 1st, 2028. So that so the 20 or the house bill from this year amended and um clarified the requirements in Senate Bill 24. All the requirements in 24 are still required by 2026. The update of um also applying to higher density multif family of more than 12 units. That one doesn't technically need to be adopted until January 1st, 2028. But we're we're proposing we're wrapping it into this one here just for a single update that way it's compliant.

And then that the that house bill also clarified that functional artificial turf is allowed the original um language. I I think that was was unclear. So this allows the functional artificial turf as well. Got it. Okay. Any other questions? Public open it up to the public. Okay.

Okay, folks. I move to close the public hearing. Do we Nobody online. We have to close it before each of these. Great. Okay. All right. Is there a second? Close. Okay. Uh, all in favor? I. Any opposed? Okay. We are now out of public hearing. Can we make a motion? Yes. I'd love to make motion to approve ordinance 528 nonfunctional turf prohibition prohibition. Okay. Second. Any further discussion? All in favor?

I. Any opposed? Okay, thanks. Okay, now um can I entertain a motion to open the public hearing regarding ordinance 529, chapter 19 regarding vehicle sales and storage? So moved. Is there a second? This is a public hearing. It is. Okay. I'm going to open it. We're going to continue it and then we're going to close it. All right. Uh was there a second? Second. All in favor? I.

Any opposed? Okay. All right. So, ordinance 529 chapter 19 regarding vehicle sales and storage. Um, a notice public hearing for this ordinance was scheduled for November 5th. However, the staff needs additional time to finalize the language of the ordinance and request that the board continue this public hearing to the November 19th board meeting. Great. We need to do we need to move. So, yeah. Is that so that s after they close the public hearing though? Continue. Okay. Second. All in favor. Continue. I.

Any opposed? Okay. And I move to continue the public hearing until the 19th. Yep. That's what we just did. Now you just need to close the public hearing. Yeah. No, she said we're not going to close it. We're continuing it, right? But we still have to close the public hearing to move on to updates, don't we?

Okay. So, he he can just we can move on to updates. Okay. Town clerk says yes. Move on. All right. Um Okay. Moving on to updates. Okay. Thank you, mayor. Um so, in the updates, we do have the updated budget. um that does show the the actuals um year and estimates in the 2026 budget. A couple things worth noting uh in that budget as we and I that I will talk about on the project list as well. Um Wendy, can you bring up the project list there?

There you go. So just so you know this is the current project list that we have. Uh some of these things can be removed and some things can be added in. Um this is what we're seeing as a recommendation for projects. We'll be bringing this again to the November 19th discussion. Uh so on the left side first column you've got all the budget line items where that these projects are included in. Um a couple things of note. Uh we do have 75,000 that is budgeted to kick off the wayfinding project that we are working with the town of Winter Park to have uniform signage for public uh facilities, public parking, um uh directional signage, wayfinding signage from the trails to business areas and from business areas to the trails uh encouraging multimodel uh transportation. Um and we'll be kicking that off soon. The reason that we haven't had a more collaborative collaborative discussion with the town of Winter Park. It's because they have stated they wanted to wait until they have their new manager in place

who will start in January and that will be John Peacock.

Um be starting that role in January. So, this current project list and the project cost. Um, and happy to talk through any of these. Uh, we'll be looking uh looking for some approaches to the uh old schoolhouse park once we get the sidewalk in and see what we can do as far as moving that or looking at some different options for amphitheaters. So, we'll be kind of looking at that, some different grant opportunities. So that's something that we're able to do next year. Um um otherwise everything else in here is is included in the budget and in each line item in the updated budget that is attached. Um it does include a placeholder for $25,000 for the Winter Park Film Festival. Uh that was discounted from uh one of the other line items. um where we originally anticipating $100,000 for the wayfinding project and we brought that down to 75,000 and then moved that $25,000. That does not mean that the board needs to adopt um uh

approve that

these these two things in there obviously or the Fraser the Winter Park it just rolls off the tongue film festival uh Winter Park Film Festival um uh that is in there for the special events line item in the budget. Um, so you will see that $25,000 increase in there. But again, that does not mean that the the board needs to approve that. It is simply a placeholder showing how the budget uh would would handle with that that budget increase. You could look at other line items. Um, you know, there's been discussions about the business enhancement program. Um, you know, different things like that that that could be pulled from as well. So, just so you know, you do have the latest and most updated budget there linked in the packet. Um, this is the project list. If you have any questions, happy to field them for you. Um, but this crosses our general fund, our water fund, our wastewater fund, um,

housing authority, housing authority. I just like to add on the budget they also added a lot of comments on the right that are very helpful when you're looking through it. So that helps answer a lot of questions. Okay. um overage expense. So for the November okay uh revenue expenditure over revenues is um really significant for 2025 and the draft for 2026 almost 4 million

and that's expenditures over new revenues. Um and uh that was similar to what we had budgeted for for the 2025 budget was utilizing some of our cash for these legacy projects like Clayton Court, especially given the uh the grant success that we've had these projects. Um but uh obviously that would not be something you'll be seeing in every year's budget. Once we construct Clayton Court uh phase one at St. landing is done. Uh you'll see significant we'll be we'll be looking more at a balanced budget for new revenues. Okay. To cover um expenditures. Yeah, that's big.

And um sometimes the uh the 2025 budget and budget message can be good for reference for that too because that was discussed in there when it was um but uh yeah.

All right. For the November 19th meeting, we will have a budget message drafted to go along with the full budget, kind of breaking down these different projects and areas of focus within the budget. Um, subsidies that the town is providing for as far as like things like uh rent for the hta building um and uh various other other funds there. So, that'll be drafted and included in the November 19th packet. And we're not anticipating any the first meeting that that we would uh present for budget adoption will be December 3rd. And I will anyone have any questions about I guess I I'm going to repeat what I said earlier in your answer was different that what happened in budget and you said this could not go forward the public works facility without the breakdown that it was but yet we have almost $6 million in play in court. a public works facility is a necessity and we did not make room for it where it should be allocated and and we have something that's elective that's a legacy project at 5.8 8 million five almost 5.9 I I I guess I I I I don't see the answer earlier where there was not funds to do it appropriately when we had those kind of numbers

are the architectural plans yes and yeah I got a different answer today than I got last week. Okay. Um um yeah, I mean again that the board prioritized the Clayton Court improvements there to really help bring in the investment for that downtown area. Um if any of these are not seen as a as a priority, well, I'm just saying there there's room there's to move stuff around when the answer was it could not move forward without being subsidized by the enterprise bots. Um and and I see a lot of money up there that could be moved around. Okay. And that's that's open for discussion if the board wants to do that. Yeah. I just wanted to get it on the record again.

Sure. Because I I I don't know. Understood. Okay. The budget isn't finalized. So, if we do want to move some things around and shift shift that, we can we can look into that. I think what Michael is saying is as it currently stands there wasn't space but if we wanted to take a deeper dive into those at different times is

sorry if I came across that that way Adam that was not the intent we we talked a lot about the coops and um what that strategy look like which again will be its own process when that comes forward um but didn't mean to mislead anybody for the architectural plans Um, any other questions about the list or the budget? Sure. Okay.

Hi, Clark. Just real quick, um, on the St. Louis landing phase one, the 2,575, isn't that just a loan that's going to get repaid after the bonds are issued? Like I understood that was a bridge loan to move the project along and it's number one on the list. Is that money going to come back in to the general fund?

That's offset for grants and different things that is in the expenditure line item. Our revenue line item offsets that not to 100% but it does offset it. Um we have total of 6 million in grants for St. Louis. So it's just it's just the expenditure is is that line item for St. Louis. that that that 2575 is grant money that's come in. It's just sitting in your general fund and now it's being dispersed to St. Louis. It's not the town's not subsidizing that 2,575. No. In addition, there there's a portion of it that's being subsidized through like grant matches and such.

Yes. Because a lot of the grants are 20 to 25% match uh from the town for that. Is there a way that we could break those out so we could see like how much of it's relative to coming out of the taxpayers general fund balance for subsidies to St. Louis versus grants I can include that like in the budget message. Okay. And then on on Clayton Court that seems like a I mean Clayton Court is not that big. $5,875,000 is substantial given you know the water infrastructure, the sewer, all this stuff that y'all have already done. Is there a plan that you guys have that shows the design of what 5,875,000 is going to do for Clayton Court? I mean, that is a lot of money for one relatively small road.

That's a good question and and a lot of the discussions were based on uh gas mains and electric getting three-phase power throughout that whole block. Um the board did have a discussion about that and they did approve that to take that on and to really invest it and kind of bridge the gap there because we were having some some conflicts with the you know being the responsibility of the developers who are various property owners to invest in this infrastructure that's underground because initially that project was really surface and an extension of a water line right so um that includes the uh you know decent sized gas mans that'll be going through Clayton Court um and the three-phase power going through plane and court. Um, and then just everything else that goes with it. The sidewalk, street lights, the roads, the curb and gutter, the parking, all those different things.

Well, I mean, this is what I do for a living. And 5,875,000 for that short run for natural gas. Um, and uh electric uh three-phase electric. I mean, I have a three-phase electric design going down Old Victory Road from uh the Spring Meadow drainage or the unnamed drainage uh all the way down. Um and uh that's a $100,000 cost. That's a far longer run than Clayton Court, right? So, we have from from Mountain Parks Electric and Excel 1.2 1.2 million. Their contracts are that amount or is that because they Mountain Parks installs their own stuff with their contractors, right?

Yeah. So that's Mountain Parks work. That's what we have the estimate from them for the free chase power. 1.2 million. That includes power and gas. Okay. Yeah. There's got to be something else like incillary offsite that's not specific to in order for them to be able to do it. And it's all the infrastructure related to it, you know, transformers and those different things. I we have that I can again with with St. Louis landing and and Clay and Cory kind of being the big ticket items that are in the budget. Happy to break those down in the budget message.

Yeah, I just think that would be wise to like know where because that still leaves 4.2 million which is still an enormous amount of money for that what is a very short small road. So, I mean, I just think informing like that would avoid a lot of the questions that you I totally agree with what you were just saying uh about reallocating and aortioning part of this, but I don't I guess what I'm saying is it's hard for anyone in the community to understand with this one Clayton Court streetscape and utilities for 5.875 million. If you know what I know, um I can build a whole neighborhood for 5.875 million, right? Services, roads, all new utilities, you know, etc. So something's arai there and I would just like to have a better understanding and maybe it's a broader scope than just that area. That's all I'm saying.

Yeah, I can down the itemized list and the budget message for that at our next meeting. Yeah. Yeah, that would be really good. Thanks, coach. Thank you. Thank you. On board as well again for the record. Um on Clayton the Clayton Courts, does that include the land purchases you're making? I know. Not not in this number here. So on top of that, you still have to take care of Mike Pent and Bob Eol because they haven't signed and agreed to uh we've got scheduled closings uh with Bob Eol and with Sarah Clayton uh Sarah Barloney um here in the next two weeks. According to Michael Kent, you don't have a land owner. We're not talking about Michael Kent. Sorry, you said Bob E. So

yeah, Bob E told me he hadn't signed either yesterday. So he he's signed. We're in a real estate contract. He has signed it. I have it. We have a scheduled closing, right? What about Michael Kent? We haven't gotten there yet. The focus is this project and the next phase will be looking at that right away. Okay. Second.

Okay. Other updates for me?

Uh for the, you know, questions? I'll hand it to Sarah for the DDA budget update there. Good evening. Sarah Gatanite, assistant town manager and interim executive director for the Frasier Downtown Development Authority. So, included in your packet is the draft uh budget for the Frasier Downtown Development Authority for 2026. Not sure why that There we go. Um we are expecting to get slightly more increment next year. Um most of that does come from the Strumm Town Homes development um being partially constructed getting a little more there. Um you will see that most of the funding that we received this year from tax increment is being rolled over. The downtown develop me authority explored um various kind of district enhancements that we were looking at and none of them really kind of panned out largely because of timing. Just a lot of moving pieces waiting for the town comprehensive plan to be finished that we could work in coordination with that, waiting for the wayfinding study, seeing what kind of wayfinding the town wanted to prioritize. Um because we did talk a lot about different possibilities for signage. Um we explored some sculptures and public art options. Um, but I will say I think the board's trying to be very thoughtful about spending kind of limited revenues and trying to do things that will have an impact and then also recognizing that by rolling money forward to future years, they will then have enough funding to perhaps do something a bit more significant. Um, so for this coming year, they are focused on kind of increasing some community engagement. They're looking at like a

mini conference series um to help with uh things like entrepreneurship and supporting small local businesses. We have been looking at a sign for the Frasier train station. Let me see if I can share this real quick. Oops. So, this is something that um Sarah Wick actually worked with Slate to create um and we've been having discussions with the downtown development authorities that this is something that they would like to sponsor and there is interest. Um, we have received permission from Amtrak and Union Pacific to put up the signs and we would look with their construction schedule, work with their construction schedule for um, the ADA enhancements that they're starting on the platform next spring to hang something. Um, so again, this has not received final approval for the board. They wanted to look at some different price quotes and then make sure with the plans for the changes to the station that there'd still be good visibility of the sign. Um, so lots of different kind of ideas and just the the timing and making sure that we're doing things in line with the overall vision of this board and the town. Um, ended up rolling most of that money forward.

So, do we want to keep the elevation on the sign? I think that's kind of fun in terms of people that just get off the train to look at it and say, "Wow, I'm 8,550 ft above sea level." ah to list list it on this sign. Yeah, I don't know. I like having it on there. I think it's kind of cool. It's great. It's multitude of accents. I think it's a past life thing. Sir, are you guys looking to remove the other sign that's hanging? I I think that would make sense. The small one just have something a little more visual. It's kind of faded. The other one, it was a lovely hand painted sign, but it's run its course. Could be a good look.

Yeah. And I think with increased passenger rail and the ski train, um the DDA's had a lot of discussions about possible enhancements moving forward um around the train station area kind of greeting people and wel welcoming them to Frasier. Um we've talked about other areas to activate in downtown and you know Clayton Court's still being developed. There's still questions about the future of Mural Park. So, um I think we've had a lot of good discussions, um but just haven't kind of landed on the right projects that make the sense for the budget that they have at this point in time. Um we're also going to be discussing an event sponsorship program um and see if that's something that the board wants to take on. This past year with again with limited funds, it didn't seem like the right use of that funding. Um but yeah, largely keeping the budget around district enhancements. We do have professional services. They've developed a financial policy document to use as potential investments are presented to the board in the future. Um and then just keeping some money there for professional services if there were potential deals, you know, presented to the DDA um that we would need that that guidance for. go back to. So, we will include a more formal budget message with the budget um at the next board meeting. Um but I'm happy to answer any questions at this time. So, our unassigned balance, so what's where's the money that carried over from 25 into 26?

That is what is here kind of under the unassigned fund balance. That's what's carried over from the previous year. And then the tax revenues are at the top and then a little bit of interest earnings from having this kind of sitting in in Colorado trust. So the um so at this stage Colorado trust when we invest there are there any restrictions for pulling those dollars and getting that 4%. Um do you know I mean they haven't you guys haven't invested I believe it's I'm sorry you guys have these funds invested. So that's what you're showing for the interest earnings is that investment in color trust. I was thinking that's 500 bucks is seems like down and up on 36 4% on 30,000 65.

Yeah. Okay. Yeah. I mean right now it's just in the town bank account and trust. So all right, good. Well, we're getting interest. Good. Yeah, it won't be a straight 4% because they do put some of that into their bank account to write checks and things of that nature. So when it's sitting in the bank, it doesn't get interest, but when it's when we pull when it's in Colorado trust, it does. Every so often, we pull money for cash to write checks so that we can pay our bills. Yeah. Have a maintain a certain balance in the bank. Yeah. Well, I just think that funds that we have, if we're not spending them, we should maybe have them invested in Colorado Trust,

that fund, the town's fund. Y probably the case anyway. Lorian's good about that. Okay. Yeah. Thank you. Thank you. Do we need to approve this budget? No. Okay. No, I will add um the DDA is doing just a casual kind of meet and greet at 8:30 before their meeting at 9 trying to encourage community members, business owners, whoever to come to our meeting. So, you are all invited um if you know anyone that might be interested. Um but again there those meetings are the second Tuesday of the month from 9 to 11 here at town hall and then there's a virtual link and the agendas are posted on our agenda center the same as the board agendas.

Okay. Yes. We going to do coffee and cookies. Get some boxes to go or something like that. Just coffee. Yeah. Some pastries. Something simple. Cool. Yep. Great. Thank you. Thank you. Thank you, Sarah.

Sure. Um, want to introduce Logan Ray. He is our new wastewater treatment plant superintendent replacing Joe Fukqua. Uh, Joe was with the town for about uh for over 26 years of service. Um, so Logan's been working closely with Joe over the years. Logan's been down at the plant for 14 years. Uh, was lead operator for a long time. Has a class A certification, which is not an easy thing to achieve. And, uh, we're excited to have him in that role. So, I just want to introduce to the public and All right. Thank you, Logan. Joe retired. Did you start for us when you were like 18? Oh, did you? Okay.

That's great. That's awesome. Thank you. Yep.

Thanks for those years of service. Um we do have uh the new a new portion of sidewalk uh that was through working with um out west developers who are developing on Clayton Court and um and they use a contractor. We were able to work with work with them to let them construct a sidewalk. So you do see you can see the uh specified sidewalk per our current construction plans for Clayton Court there. Um it is 8 and 1/2 ft wide. it is that a darker red tint in color that does help with hopefully the warming of the concrete and some prevention of some ice and snow buildup and things. Um but that is there. Um so excited to see some infrastructure going in down there. So they just have that on their property line for their strong development in the bakery there.

Um do have an update for project status for St. Louis. Uh building C does has have the first floor exterior walls have been framed and constructed. They do they have also completed the uh the floor joists that will go between the first floor and the second floor. So those are complete. Um and they are anticipating the completion of that building by November 13, 2026 uh to be ready to be moved in for tenants. Um and for building E, um completion of that building is is anticipated for February 22nd, 2020, uh 7. Um so again, November of next year for building C. And then for building E, which will include the childc care facility, that will be ready for tenants anticipated February 22nd. So very specific dates that they gave me.

February. Um, and then for building D, uh, assuming that we have successful closing of all the Prop 123 funds and everything else, uh, completion anticipated for October of 2027. So, I just want to give you guys an update there. And, okay, they are moving right along and bringing on some other framing crews to start um, while they're continuing framing on building C to start framing on building E as well and get some of those um, whatever you want to call it um, benefits of of same work. Yeah, I'm sure there's a fancier term for that. Okay, cool. Um, but that's all I have. That's great. Ward, any updates?

What's that? So, I know it's petty, but we need to have Halloween candy for our Oldtown Pre residents. Going to have it this year. We've had it for like the last 10 years. And yeah, no one ever knows if we get it like the day before, but we always get it. And then we didn't get it. And so people were scrambling at the last minute going to Safeway to buy these tiny bags of candy. Yeah. And it's just something that the community likes, you know, they feel it taken care of by us when we provide that. And it gives them a chance to come in here. People that normally don't ever come in here, you know, to meet people and hang out. Like that's why I met Michael getting Halloween candy.

So I just don't think there's a reason we can't go spend a grand on Halloween candy. That's all I'm saying. Bob decision. My bad. And you just forgot. Not your fault. She didn't get to Costco. Okay. She's like, "Let's go the day before." Picked it up. Somebody was telling me that years ago they would just kind of put out a bulletin said, "Hey, if your kids are going to be trick-or-treating in Oldtown, you want to provide some candy to the people who actually live there and are handing it out, then bring it into town hall." So, we don't we don't all have to pay. The the town doesn't have to pay for all of it. We can also like ask the people who are bringing their kids here to help.

But it's just something that I think if you ask some of the people in Frraasier, what would you rather have Halloween candy or flowers for the summer? They would say candy. I swear that would really help the budget. I think thousand bucks for candy. We can do that. Y Okay, sounds up. Yeah, thanks. Um, only update I have is that Jill and I were at the ribbon cutting for the um the lift. The Lyft has two fully electric buses now in the fleet. So cool. Exciting step forward. Totally covered by grants. Two and a half million dollars for these two buses. And Wow. Yeah. To cover them.

So they'll be in operation. They have two big wings on the top. Basically, these two grooves. Um they're very obvious compared to the other buses.

The mechanics at that come into happy hour are really excited about them. [laughter] Uh, no, we don't have that. Uh, I did include that in the weekly update last week, but um we're going to be looking at a couple different grant options for that. Um, the estimate that we had from January of this year was um rebuilding that Frasier Trail was $620,000. Um, and we're getting we're working with uh with our engineering firm to get an update to that estimate so we have what the number is um so that we can go after some grants for that. Um, but yeah, the uh given the the project priorities are list shown on that list. Um, just didn't see pushing that in um as something that we really want to recommend as far as going further into the red. Um while we still can look at some grant opportunities uh with state trails grants and OT for that as well.

Yeah. I'm sorry. That's the pave trail that's in front of Wendy's that goes from the Fraser Winter Park pave trail. Yeah. Along Highway 40 Grand Park all the way through. Yeah. You want to kick in [laughter] just throwing that out. the uh and we had talked about this before that um it was undermined by rodents. Yeah.

So it needs to have some kind of a good underlay so that will support it so when the rodents cruise underneath and build their tunnels and do their things, we don't have that same problem again. Miny Mouse did it 10 years or 12 years ago where they build that whole thing up and reworked it. It was paint because the contractor paid back I think but they milled up the existing one mix it in with the subgrade. Yeah. And I mean it was like done to the degree I think the issue. Are you talking about the crack being the problem?

Yeah the cracks. Yeah, the cracks where the the critters getting in there and it's separate cousin ways the same way that cousins cracks get done. Okay, that's the issue with that. All right. I don't think the under. No, I I'm pretty that's what I had a few people tell me, but kind of in the know. Anyway, we'll still pursue an option into it. Yeah, give us some good grant success hopefully. Yeah. a lot of visibility. Not recommended for um small for rollerblades or [laughter] learn jump skis or get that one letter. Any other updates? That's it.

Oh, okay. Just two quick updates. I did approve a special event permit for the Festival of Trees, their annual event um December 5th this year at Gant the Rec Center. Um, and we've also approved the drop hunger, the Lions, uh, um, Fer Valley Lions Club, their drop hunger on the ponds. Um, we did approve their item, which is going to be a snowman made out of barrels like uh, from the distillery. I don't know if they come from our distillery or not. Um, but everything's in place there and they are all approved. Great. Thank you. You're welcome. Yes, but it's not going to be a refrigerator this year. something nicer looking.

The snow from the liquor store. [laughter] Let's have a snows. Okay. All right. Any other updates? Okay. Who's got the motion? Um, so it's actually, uh, sure, why not?

With the executive sessions, there's like eight reasons. I'm going again for the record. With executive sessions, there's like eight reasons you can go into an executive session. On the agenda, it says you're reviewing an agenda. That's not one of the eight. It's for developing strategy for negotiations andor instructing negotiators. So the the topic is within the joint facilities oversight committee. I mean you've sat in on these um right? I've sat in a lot of them that don't fit this these eight reasons you could be in right underneath it. It says for the purpose of determining positions relative matters that may be subject to negotiations. So everything of negotiation. I mean

it's just a private chance like the other sanitation districts have. They have a private chance to discuss items on their agenda where they're not on YouTube, they're not on Zoom, they're not on any kind of recorded meetings. They just have live meetings for who's in the room and it's just an opportunity for Frasier to be on the same plane. Okay. Just check. All right. It's recorded if we don't have an correct. Okay. Um, anybody can make the motion based on what's written in the agenda.

We don't have to read off special one. I'll move to go into an executive session for the purpose of determining positions relative to matters that may be subject to negotiations, developing strategies for negotiations and or instructing negotiators under CRS section 24-6-424E regarding joint facilities oversight committee agenda review. Second. Any further discussion? All in favor? I. Any opposed? Okay. All right.