IGA; Knollwood Metropolitan District; annexation and transition of municipal services; no end date Contract Tracking> Thank You Page 1 of 2
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Routing Number 20190415-5332
Originating Dept City Attorney
Contact Person Stephanie Naylor Phone Number 303-441-4091
Project Manager/Contract Hella Pannewig E-mail pannewigh@bouldercolorado.gov
Administrator
Counter Parties Knollwood Metropolitan Distrcit
Contract Title/Type IGA- Knollwood Metropolitan District /
NumberQYv
Description Intergovernmental Agreement with the Knollwood Metropolitan District regarding the annexation
and transition of municipal services to the City of Boulder. If the annexation is not approved by
voters or the Annexation Ordinance is not approved by City Council,this agreement is null and
void.
Special Instructions Please return fu ly,executed copy to Stephanie Naylor.
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INTERGOVERNMENTAL AGREEMENT REGARDING ANNEXATION AND
TRANSITION OF MUNICIPAL SERVICES
This INTERGOVERNMENTAL AGREEMENT REGARDING ANNEXATION AND
TRANSITION OF MUNICIPAL SERVICES (the "IGA") is made and entered into effective this
1,5 day of , 2019 (the "Effective Date"), by and between the City of Boulder,
Colorado, a ho&ne rule municipality, (the "City") and Knollwood Metropolitan District, a quasi-
municipality and political subdivision of the State of Colorado (the "District") (individually
referred to herein as a"Party" and collectively as the"Parties").
RECITALS
WHEREAS, the District was formed in 1965 to provide the District's residents with water
services and was converted to a metropolitan district in 2015 to also provide street improvements
and traffic and safety controls as provided in the Amended Statement of Purposes dated October
9, 2015, which conversion was approved by the Court on December 17, 2015, both attached as
Exhibit A; and
WHEREAS, pursuant to Art. XIV, § 18(2)(a) of the Colorado Constitution, and
§ 29-1-203, C.R.S., as amended, the Parties may cooperate or contract with each other to provide
any function or service lawfully authorized to each; and
WHEREAS,property owners within the District have petitioned the City for an annexation
election on the question of annexation of all property within the District (the "District Property")
and 150 Green Rock Drive (collectively the "Annexation Area") into the boundaries of the City.
The Annexation Area is shown in Exhibit B. The"Annexation Petition" submitted is dated June
27, 2018; and
WHEREAS, on March 19, 2019, the City Council of the City of Boulder (the "City
Council") held a public hearing on the Annexation Petition and the Terms and Conditions
contained in the"Annexation Resolution," a copy of which is attached as Exhibit C; and
WHEREAS, the City and the District will coordinate in conducting an annexation election
for the Annexation Area and wish to set forth the procedure to be followed for the election, and if
approved by the voters, construction of public improvements and dissolution of the District. This
IGA contains the obligations of the District only; obligations of individual properties within the
Annexation Area are contained in the Annexation Resolution; and
WHEREAS, the Annexation Resolution requires inter alia (a) that the road and water
system public improvements set forth in Exhibit D (the"District Public Improvements") are to be
constructed by the City up to the meter pits serving each District Property, (b) that the District
Properties be connected to the City water system upon the City's completion of installation of new
water mains and service lines serving District Properties; (c)that the District or individual owners
of District Properties install service lines from the structures being served to the meter pits and
install pressure reducing valves on the District Properties compatible with the City's water system
public improvements, (d) and dissolution of the District within five years of the effective date of
the Annexation Ordinance or within two years of the City's final acceptance of the District Public
Improvements under the City's Construction Contract (as defined below), whichever occurs later,
00185773-11
for all purposes except as necessary to adequately provide for the payment of remaining financial
obligations or outstanding debt of the District; and
WHEREAS, if a majority of eligible votes are in favor of annexation, the District wishes
to provide financing for the required District Public Improvements and the City will design and,
upon the District obtaining financing for the District Public Improvements, construct the District
Public Improvements, as set forth herein; and
WHEREAS, until connection of a District Property to the city water system, the District
shall provide water services to that property; upon completion of the water system improvements
and connections, the District shall discontinue water service and abandon all of its water system
improvements; and
WHEREAS, the District wishes to provide financing of the City fees related to the
construction of facilities for connection of the District Properties to the City's water system (the
"Water Plant Investment Fees") that are a condition of annexation; however other City fees, and
any portion of the Water Plant Investment Fees not paid by the District, shall be the responsibility
of each District Property owner for its property; and
WHEREAS, the City requires that (a) immediately upon annexation, the City Council
become the approving authority for the District pursuant to Section 32-1-204.7 C.R.S., (b) the
powers of the District be reduced as a condition of annexation as set forth herein, (c) the District
be dissolved within five years of the effective date of the Annexation Ordinance or within two
years of the City's final acceptance of the District Public Improvements under the City's
Construction Contract, whichever occurs later, for all purposes except as necessary to adequately
provide for the payment of remaining financial obligations or outstanding debt of the District, and
(d) the City Council serve as the board of the District upon dissolution pursuant to Section 32-1-
707(2)(c) C.R.S.; and
WHEREAS, the District has the authority to provide snow removal, maintain common
areas, enforce covenants, and maintain the outlots in the District (the "Community Services");
which Community Services shall be discontinued and the outlots conveyed to the City within five
years of the effective date of the Annexation Ordinance or within two years of the City's final
acceptance of the District Public Improvements under the City's Construction Contract,whichever
occurs later, unless the owners of the District Property establish a common interest community
and unit owners' association (the"HOA") consistent with Sections 38-33.3-101, et seq. C.R.S. to
provide the Community Services presently provided by the District; and
WHEREAS, after annexation of the District Property to the City and the District's
financing and the City's construction of the District Public Improvements, there will be limited
need for the District to provide public services, and the Parties wish to limit the District's powers
in the future through approval of a Second Amended Statement of Purpose upon annexation, and
dissolve the District within five years of the effective date of the Annexation Ordinance or within
two years of the City's final acceptance of the District Public Improvements under the City's
Construction Contract, whichever occurs later, for all purposes except as necessary to adequately
provide for the payment of remaining financial obligations or outstanding debt of the District; and
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WHEREAS, upon implementation of this IGA including approval of the vote to dissolve
the District,the obligations of the property owners within the District under out-of-city wastewater
service agreements between the City and the property owners will be satisfied.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the Parties agree as follows:
L ANNEXATION PROCEDURE
1.1 The Parties agree to the following annexation procedure:
1.1.1 City Council Resolution. The City Council has approved the Annexation
Resolution, with the terms and conditions set forth in Exhibit C (the"Annexation Terms").
1.1.2 Annexation Election. After approval of the Annexation Resolution,the City
will petition the District Court to call an election and will hold an election on the question on
annexation in accordance with the Annexation Resolution. The District agrees to reimburse the
City for up to and not to exceeding$5,000 of election costs and expenses paid by the City pursuant
to § 31-12-112(10) on the effective date of the Annexation Ordinance, but in no event later than
the start of construction of the District Public Improvements.
1.1.3 Annexation Ordinance. If a majority of the valid votes in the election are
in favor of annexation, the City Council shall consider adopting an Ordinance approving
annexation (the "Annexation Ordinance"), pursuant to the terms of the Annexation Resolution.
No additional terms or conditions of annexation will be added to the Annexation Resolution.
II. KNOLLWOOD PUBLIC IMPROVEMENT PROJECT
2.1 Scope of Project. If voters approve annexation and the City adopts an Annexation
Ordinance, the Parties agree that the District Public Improvements shall be completed by the City
and financed by the District (except as set explicitly set forth herein), as a requirement of
annexation. The District shall coordinate with the City for the construction of the District Public
Improvements and pay for such improvements (except that the City shall pay the costs associated
with the up-sizing of the line in Knollwood Drive from 8" to 12" and costs associated with
connecting the service line for 150 Green Rock Drive to a new main to be constructed as part of
the District Public Improvements, as set forth in Exhibit D).
2.2 Designated Representatives. The Parties designate the following representatives
(hereafter referred to as "Representative(s)"), who are authorized to review and provide any
required review, comment, approval or authorization regarding the design and construction of and
District Property connection to the District Public Improvements (the "Project") under this IGA,
including bids,design plans and change orders. The Parties may appoint a replacement designated
representative by written notice provided to the other Party.
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For the District:
Barry Baer Jim Semborski
Treasurer Secretary
Knollwood Metropolitan District Knollwood Metropolitan District
2265 Knollwood Drive 2195 Knollwood Drive
Boulder, CO 80302 Boulder, CO 80302
Telephone: 303-443-1118 Telephone: 303-949-1651
colonelbsb@aol.com jimsemborski@comcast.net
For the City:
Dan Kvasnicka Jeff Arthur
Project Manager for Boulder Boulder Director of Public Works - Utilities
Telephone: 303-441-3201 Telephone: 303-441-4418
KvasnickaD@bouldercolorado.gov ArthurJ@bouldercolorado.gov
2.3 Design of District Public Improvements.
2.3.1 Design Contract. The City has existing contracts for construction of public
improvements and will establish a Scope(s) of Work for the design and engineering of the District
Public Improvements (the "Design SOW") for a cost of not to exceed $140,000. The City has
provided the Design SOW to the District for review and comment. The District shall pay$70,000
to the City for the design and engineering costs within 30 days of the Effective Date. The District
shall pay the remaining amount due for design and engineering prior to commencement of
construction of the District Public Improvements. The District shall make a second payment of
$70,000 to the City, within 15 days after the City has approved and provided the District with
invoices for work costing $70,000 or more. The cost of the design and engineering work for the
Knollwood Public Improvements shall not exceed$140,000,unless a change order is approved by
the District and a City Representative. The District will not be charged for project management
costs of City employees.
2.3.2 Change Orders/Amendments. In the event that there are any change orders
to the Design SOW acceptable to the City, it will be provided to the District for review and
approval by the District within five business days, which approval shall not be unreasonably
withheld. Failure to present written reasons for objection within five business days of receipt of
the change order shall be deemed approval by the District. The City shall consider the District's
objections in good faith, and make appropriate adjustments to the change order, if any,within five
business days of receipt of the objection. The District shall pay the amount of the change order to
the City within fifteen calendar days of receipt of the change order from the City unless the District
provided written reasons for objection within five business days of receipt from the City.
2.3.3 Design Plans. The City shall provide copies of the design of the District
Public Improvements to the District's Representative at 30% completion, 90% completion and
100% completion. Within five business days of receipt of each design set, a City representative
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will meet with a District representative, if requested by the District, to answer any questions. A
representative of the District may attend any meetings between the Engineer and the City regarding
the Knollwood Public Improvements. The District may object to the design to the extent that: 1)
it includes improvements not set forth in Exhibit D, 2) it includes improvements to facilities other
than District Public Improvements benefitting the City at large instead of the Annexation Area, or
3) it requires improvements at a higher standard or quality than required by City of Boulder Code
and Regulations. If the District objects on one of the bases set forth above, the Parties shall follow
the procedure set forth in Section 2.3.2 of this IGA. In the event that the annexation is not approved
by the voters or by the City, the District shall be provided a copy of and shall own all design
drawings,provided that the District has paid the engineer's costs associated therewith. The Design
SOW will state that,if the annexation is not completed,the District will own the plans. If the plans
are 100% complete, the District may use the plans to complete the District Public Improvements,
but if the plans are used for other projects, such use shall be at the District's risk.
2.3.4 Dedication of Easements. The Parties recognize that rights-of-way within
the Annexation Area are owned by the County and will become City rights-of-way upon
annexation. However, easements and other property interests may be needed for the Knollwood
Public Improvements. The District shall obtain all easements and property interests needed for
the construction of the Knollwood Public Improvements, as identified in the design phase or
construction phase. Prior to commencement of construction, the District (or the County, as the
case may be) shall convey, assign or quit claim any easements and or other property interests
needed for the District Public Improvements to the City.
2.3.5 If Annexation is Not Approved. If the annexation vote is against
annexation, the District may require the City to suspend the work on design of the Knollwood
Public Improvements and the District shall only be responsible for costs incurred or work
performed by the Engineer prior to the date of such suspension.
2.4 Construction Contract.
2.4.1 Contract Terms and Procedure. Following the completion of the design for
the District Public Improvements and after the District obtains the funds to pay for the construction,
the City shall secure a construction contract for the District Public Improvements consistent with
the City's construction contract procurement policies. The City has existing contracts for
construction of public improvements and may establish a Scope of Work for the construction of
the District Public Improvements (the "Construction SOW") under such existing contract. If the
City obtains one or more bid(s) for construction of the District Public Improvements (the
"Project")and finds the bid(s)acceptable,the City shall present the bid(s)to the District for review.
Within five business days of receipt of the bid(s) or Construction SOW, a City and Engineer
representative will meet with a District representative, if requested by the District, to answer any
questions. If the bid is higher than original City engineer estimates of $1,529,432.04, and the
District provides written objections to the bid to the City Representative, the City shall consider
the objections in good faith and obtain revisions to the bid(s) or request a new bid(s), as the City
deems appropriate. The City shall provide the District with a copy of the contract or Construction
Scope of Work, as applicable, for the Project (the "Construction Contract") for review and
comment,to ensure compliance with this IGA. The Construction Contract and all communications
with the contractor shall be with and through the City. The Construction Contract shall require
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the contractor to be responsible for the costs of any necessary repair of damages caused to the
District's existing improvements during the course of the Project. The District may notify a city
representative of any faulty work or damages caused by the contractor, and the City shall in good
faith consider the information in the management of the Project and the Construction Contract,
which may include enforcing the repairs. If it results in any cost savings on the Project,the District
shall be credited.
2.4.2 Change Orders/Amendments. In the event that there are any change orders
to the Construction Contract approved by the City, it will be provided to the District for review
and comment by the District's Representative. The District's Representative shall provide written
comments, if any, to the proposed change order within five business days of receipt. If requested
by the District, within business five days of receipt of any written comments, the City shall meet
with a District Representative to attempt to resolve any areas of disagreement. The District shall
pay the amount of the change order, as revised through these discussions,to the City within fifteen
calendar days of receipt of the change order.
2.4.3 Progress Payments. A City representative or the Engineer shall review
monthly invoices from the Contractor and, following approval, shall forward the portion of
monthly invoices for the District Public Improvements to the District's Representative. The
District shall make payment to the City for the invoice within fifteen calendar days of receipt,
unless the District Representative objects in writing on the basis that the invoice is for work outside
the scope of the Construction Contract for which no change order has been approved, that the
billed work has not been performed or completed, or that work completed is defective. In the
event of such objection, City and District Representatives shall meet within five business days to
resolve the issue. If the City and the District Representative cannot agree on the validity of the
invoice, a City Representative shall determine that amount validly due for completed, non-
defective work within the scope of the Construction Contract, and the District shall pay such
amount to the City within five business days of the Project Manager's determination. The City
shall pursue any remedies it deems appropriate against the contractor in the event of defective
work. In the event that the District fails to make progress payments as set forth herein, the City
may order the Contractor to suspend work on the District Public Improvements.
2.5 Construction Manaizement and Contract Terms.
2.5.1 The District hereby authorizes the City to manage, advertise, contract and
construct the Project pursuant to the City's standards and requirements. All District Public
Improvement construction shall be in compliance with design plans reviewed by the District.
2.5.2 The District may inspect the final installation of all District Public
Improvements during normal business hours in accordance with on-site safety protocols. The City
shall provide the District notice 24-hours before backfilling. All communications from the District
about construction shall be provided to a City Representative and the District shall not interfere
with any contractors working on the District Public Improvements.
2.6 Ownership. During construction and following completion, the District Public
Improvements shall be owned by the City. Following completion of the District Public
Improvements and acceptance by the City, the District shall have no responsibility for costs
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associated with operation, maintenance, repair, improvement or warranty defects to the District
Public Improvements, other than those for which all property owners in the City are responsible.
III. FINANCING OF KNOLLWOOD PUBLIC IMPROVEMENTS
3.1 District Debt. Pursuant to voter approval on November 8,2016,the District issued
debt in the amount of $500,000, of which approximately $461,000 remains outstanding for
financing the cost of designing, constructing and installing street and water system improvements.
At an election on November 6, 2018, a majority of the eligible electors of the District voting in
such election voted in favor of a ballot issue authorizing the District to enter into, incur or issue up
to $2,750,000 principal amount of general obligation indebtedness for the purposes stated in the
ballot issue, which includes all of the costs related to the District Public Improvements.
3.2 District Financing
3.2.1 2017 GO Loan. In 2017, the District entered into a general obligation Loan
Agreement with Co-Biz Public Finance, Inc., pursuant to which the District borrowed $500,000
(the"2017 Loan"), of which approximately$461,000 remains outstanding.
3.2.2 2019 GO Financing. If the annexation is approved by the voters of the
Annexation Area, the District intends to issue general obligation debt under the 2018 TABOR
authorization to finance the District Public Improvements, payment of the water plant investment
fees, described in section 3.4.1 below, and costs that are directly related to those improvements.
The Parties agree that the 2019 debt will comply with the following parameters, unless the City
and the District agree in writing to a different structure.
• The debt will be issued by the District, and the City shall have no obligation for payment
thereof.
• The debt may be a loan or bond or other financing, including public or private placement.
• The debt may be wholly or partially tax-exempt,to the extent that a qualified bond attorney
provides a legal opinion that the debt is eligible to be tax-exempt.
• The debt may be secured by a general obligation pledge and mill levy certification pledge
for certification on the District Property.
• The debt shall be in accordance with the voter approved debt requirements
The debt issuance documents shall include provisions recognizing the terms of this IGA
and support the dissolution of the District, for all purposes except as necessary to adequately
provide for the payment of remaining financial obligations or outstanding debt of the District, as
provided in the Dissolution Plan. All references to "dissolution of the District"herein refer to the
dissolution subject to the outstanding debt in accordance with the Dissolution Plan and do not refer
to final dissolution after all outstanding debt is paid. The District shall provide the City with drafts
of the debt documents within five business days of receipt of each draft. The City shall provide
written comments, if any,within five business days of receipt,which comments that are consistent
with this IGA shall be considered by the District for incorporation into the final debt documents.
The District will use its best efforts to issue a new general obligation loan,bond or other financing
within 180 calendar days of the approval of the annexation ordinance.
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3.3 Amendment to this IGA to Accommodate Financing. In the event that the District
and the City agree that amendments to this IGA are necessary for the District to obtain the debt
financing contemplated herein, the City Manager may approve such amendment on behalf of the
City.
3.4 If Annexation Election Does Pass.
3.4.1 Water Plant Investment Fees. The District shall pay the City the total
amount of $875,136, as water plant investment fees for the entire Annexation Area, with fifty
percent paid upon connection of the first property to the City's water system and the remaining
amount paid prior to connection of the last property in the Annexation Area to the City's water
system, and the District shall pay all other applicable fees and charges associated with service line
connections to the City's water utility, including, but not limited to, all applicable water utility
connection and inspection fees. These charges are hereafter collectively referred to as "Water
Public Improvement Fees."
3.4.2 Wastewater Plant Investment Fees. The Parties recognize that the structures
within the Annexation Area currently receive wastewater service from the City and no additional
wastewater plant investment fees will be due upon annexation. Following annexation, the
properties within the Annexation Area will be charged the in-City resident rate for wastewater
treatment services.
3.4.3 Miscellaneous Costs. The District has paid an annexation application fee
of$20,000. The District agrees to pay any other direct costs or obligations not specified herein but
necessary to accomplish annexation,including any costs incurred for the dissolution of the District,
except that the District shall not be charged for City employee time spent on the annexation and
implementation of this IGA for the City and shall not be responsible for election costs and expenses
that exceed $5,000.
3.4.4 Wetland Evaluation and Mapper. If a majority of votes casts in the
annexation election by the voters of the Annexation Area is for annexation, within 10 business
days of such vote, the District shall pay to the City the wetland mapping and evaluation fees
applicable as of the Effective Date pursuant to Sections 9-3-9(k)(2) and 4-20-53, B.R.C. 1981.
The City will perform a functional evaluation and map all stream,wetland,water bodies and buffer
areas in the Annexation Area. The approved mapping and evaluation shall be adopted as part of
the Annexation Ordinance.
IV. WATER SERVICE
4.1 District Water Service. The District will continue to provide domestic water supply
to each property within the District until each property is connected to the District Public
Improvements and begins receiving water service from the City. The District will send out its
final water bill within 90 days of the connection of a property to the City.
4.2 Dedications/Conveyances to the City: Within 60 calendar days of the connection
of the last home to the City's water system, or such earlier time as is agreed by the Parties:
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4.2.1 The District shall dedicate to the City, at no cost to the City and by Bill of
Sale: (a) the water meters for each connection within the District Property; (b) any water hydrants
which are not replaced as part of the Project; and (c) such other water system improvements that
are owned by the District and identified by the City. The District shall vacate or assign easements
of the District as directed by the City. The District owns alluvial ground water rights decreed in
Case No. W-6304. The City waives any right to purchase such water rights. The District shall
abandon such rights in accordance with Colorado law. Immediately following connection of the
last District Property to the City's water service, the District shall cease pumping and
decommission the four Knollwood Water District wells decreed in Case No. W-6304 entered on
April 8, 1976, (the"District Water Rights") in accordance with all state requirements. Within[90]
days after connection of the last property within the District to the City's water system, in
accordance with applicable law, except as specifically provided herein and at its expense, the
District shall abandon all facilities it owns, the water mains, storage tank, pump house, and other
structures, in accordance with applicable law,unless otherwise agreed by the District and the City.
The City may remove any facilities abandoned by the District.
4.2.2 Outlots. The District owns outlots on the plats for the Annexation Area
("Outlots"). The Outlots owned by the District shall be dedicated to the City upon dissolution of
the District unless the homeowners within the District have created a common interest community
and unit owners' association in accordance with Colorado law,and the District conveys the Outlots
to the homeowners association prior to dissolution.
4.2.3 City Water Service. Upon connection of each District Property to the City's
water system, the terms conditions, limitations, restrictions, rights and remedies for such water
service shall be as provided in the Boulder Revised Code and any rules adopted pursuant thereto.
4.2.4 Indemnification. To the maximum extent permitted by law, the District
shall indemnify and hold harmless the City from any liability associated with the provision of
water service by the District, including but not limited to any post-pumping depletions and
replacement obligations related to the District Water Rights, except to the extent caused by the
actions or inactions of the City or its agents. After connection to the City's water system, the
District shall not be responsible for any costs associated with the City's provision of water service
except as provided herein.
V. STREET, TRAFFIC CONTROL AND FIRE PROTECTION SERVICES
5.1 Public Streets. The Parties hereby recognize that following completion of the
annexation, Green Rock Drive, Knollwood Drive, Willow Glen Court and Brookside Court shall
change from County right-of-way to City right-of-way. Thereafter, the City shall commence
exercising governmental street and traffic and safety control powers as to all public streets within
the District, and the District's street powers shall be limited to financing and contracting for the
improvements required herein and obtaining permits and contracting for snowplowing until those
duties are performed by an HOA or discontinued.
5.2 Fire Protection Services. Following completion of the annexation, the City will
provide fire protection services to the Annexation Area. The City and the District will cooperate
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to promptly process exclusion of the Annexation Area from the Boulder Rural Fire Protection
District,pursuant to Section 32-1-502, C.R.S.
VI. LIMITATIONS ON DISTRICT POWER, DISSOLUTION, AND CONVEYANCE
TO CITY AND HOA
6.1 Designated Approving Authority. If the annexation is approved by the voters,
immediately and prior to City Council's consideration of the Annexation Ordinance, the District
shall petition the City to become the designated approving authority of the District pursuant to
Section 32-1-204.7, C.R.S., conditioned upon the City Council's' approval of the Annexation
Ordinance.
6.2 Post-annexation Powers. From and after the effective date of the Annexation
Ordinance, the District may have and exercise only the following powers, powers necessarily
implied to carry out such powers, or powers approved in writing by the City in advance at the
expense of the District. Provided however, that the District's powers are further limited as set
forth in Section 6.4, upon the later of. five years from the effective date of the Annexation
Ordinance or until two years from the City's final acceptance of the District Public Improvements
under the Construction Contract.
6.2.1 Incurring and paying financial obligations, in a form consistent with this
IGA, to pay for:
o Design and construction of Knollwood Public Improvements described in Exhibit
D.
o Design and installation of service line connections from existing meter pits to new
meter pits and installation of pressure reducing values.
o Costs associated with acquisition of easements.
o Payment of Water Public Improvement Fees.
o Costs related to annexation and this IGA, including without limitation costs
required by the City;District or City contractor,attorneys,engineers and surveyor's
fees and costs; and costs related to the annexation election and agreements and
related steps, such as dissolution of the District and organization of an HOA.
o Costs of issuance of the financing.
o Payment of any obligation related to the District Water Rights.
o Other costs authorized by the eligible electors in the debt authorization.
6.2.2 Providing water supply, treatment and delivery services to the Annexation
Area,until connection to the City's water system,and billing for fees, costs and charges associated
therewith.
6.2.3 Operating and maintenance of the existing District water system until
conveyance to the City or abandonment as provided in Section 4.2 of this IGA.
6.2.4 Abandoning District wells and property or conveying real and personal
property to the HOA or the City as provided herein.
6.2.5 Conveying Outlots to the HOA or the City.
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6.2.6 Contracting for construction or installation of improvements related to the
District Public Improvements, which are necessary for the District Properties to receive water
service from the City.
6.2.7 Performing obligations of the District required by Colorado law until
dissolution, including budgeting and auditing, required elections, and obligations to accountants,
auditors and attorneys.
6.2.8 Assessing a mill levy and any special assessments necessary to cover the
costs of the District until the District has fully discharged all financial obligations.
6.2.9 Owning and maintaining the Outlots until conveyance as provided in the
Dissolution Plan.
6.2.10 Acquisition of easements or other property interests needed for the District
Public Improvements, provided that the City's prior approval is required before the District
exercises its power of eminent domain.
6.2.11 Snow removal on streets within the Knollwood Subdivision, Knollwood
First Addition, and Knollwood Second Addition (collectively the "Knollwood Subdivisions"),
pursuant to an annual right-of-way permit and in compliance with all applicable city requirements,
via contract with Boulder County or another contract provider.
6.2.12 Complying with and enforcing terms of this IGA and agreements with water
users, including Section 4.2.4 regarding indemnification of the City from financial obligations
related to the District Water Rights.
6.2.13 Enforcement of covenants not inconsistent with City regulations and
requirements as contained in the Declarations of Covenants,Conditions and Restrictions,recorded
in the real property records of the County Clerk and Recorder on July 23, 1965 for the Knollwood
Subdivision at reception number 789376, on November 4, 1966 for the Knollwood Subdivision
First Addition at reception number 831673, and on October 15, 1969 for the Knollwood
Subdivision Second Addition at reception number 893916, as amended.
6.2.14 Cooperation and assistance to homeowners regarding organization of an
HOA, amendment of covenants and conveyance of the Outlots to the HOA.
6.3 Dissolution of the District. The District shall be dissolved as provided in the
"Dissolution Plan," attached hereto as Exhibit E. The Dissolution Plan shall provide for
dissolution except for the payment of financial obligations and outstanding debt until paid in full
consistent with Section 32-1-702(3)(c), C.R.S.
6.4 Future Limitation on Powers. If the District is not dissolved within five years of
the effective date of the Annexation Ordinance or within two years of the City's final acceptance
of the District Public Improvements under the City's Construction Contract, whichever occurs
later, the District shall not exercise any power except as necessary to pay off the financial
obligations and outstanding debt.
11
6.5 Statement of Purposes. If the voters in the Annexation Area approve the
annexation, the District Board shall submit for City Council approval at the meeting where the
City Council considers second reading of the Annexation Ordinance, the Second Amended
Statement of Purposes, essentially in the form attached as Exhibit A to the Dissolution Plan (see
Exhibit E). The City Council shall only consider such approval following: 1) approval of the
Annexation Ordinance and 2) acceptance of designation as the approving authority for the District
pursuant to Section 32-1-204.7 C.R.S.
6.6 HOA. In order to provide some of the non-essential services currently provided by
the District and to own and maintain the Outlots presently owned by the District and provide snow
removal, the property owners inside the District boundaries may form a common interest
community and a unit owners' association. The City shall not contest the authority of the HOA to
exercise the following powers:
• Enforce the covenants of the community, as they may be amended from time to time per
Colorado law.
• Snow removal on streets within the Knollwood Subdivisions pursuant to an annual right-
of-way permit issued by the City and in compliance with all applicable city requirements.
• Owning and maintaining the Outlots and other public or common areas, including the
entrance sign to the Knollwood neighborhood.
VII. GENERAL TERMS AND CONDITION
7.1 Defaults. A default shall exist if either Party fails to comply with the terms and
conditions hereof and such failure shall continue for a period of thirty(30)days after notice thereof
given by the other Party. In the event of a default, the non-defaulting Party may enforce its rights
under this IGA by any remedy available at law or equity, including without limitation, specific
performance. The Parties may agree to participate in mediation before proceeding to court or in
lieu of litigation.
7.2 Non-Appropriation. The City understands, and the District agrees, that the District
will use its best efforts to appropriate funds sufficient to make payment for all financial obligations
as contemplated herein. In the event of non-appropriation,the City may enforce remedies set forth
herein or remedies available against residents of Knollwood, if applicable. The Parties agree and
acknowledge that because payments are subject to annual appropriation, this IGA does not
constitute a multiple fiscal year debt or financial obligation of the District,under Colo. Const. Art.
X, sec. 20.
7.3 No Partnership or Agency. Notwithstanding any language in this IGA, or any
representation or warranty to the contrary, neither the District nor the City shall be deemed or
constitute a partner,joint venture, or agent of the other. Any actions taken by the Parties pursuant
to this IGA shall be deemed actions as an independent contractor of the other.
7.4 No Third-Party Beneficiaries. It is expressly understood and agreed that
enforcement of the terms and conditions of this IGA and all rights of action relating to such
enforcement shall be strictly reserved to the Parties. It is the express intention of the Parties that
12
any person, other than the Parties, shall be deemed to be only an incidental beneficiary under this
IGA.
7.5 Governing Law and Venue; Recovery of Costs. This IGA shall be governed by the
laws of the State of Colorado, and venue shall be in Boulder County, Colorado. In the event legal
action is brought to resolve any dispute among the Parties related to this IGA, the non-prevailing
party shall pay the court costs and attorney fees of the prevailing party.
7.6 Governmental Immunity. No term or condition of this IGA shall be construed or
interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections
or other provisions of the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq. as
it applies to either Party.
7.7 Authority. The Parties represent and warrant that they have taken all actions
necessary to legally authorize the undersigned signatories to execute this IGA on behalf of the
Parties and to bind the Parties to its terms.
7.8 Entire Agreement. This IGA contains the entire agreement of the Parties relating
to the subject matter hereof and,except as provided herein,may not be modified or amended except
by written agreement of both Parties.
7.9 Counterparts. This IGA may be executed in counterparts, each of which shall
constitute one and the same instrument.
7.10 BindingEffect.ffect. This IGA can be assigned only with the consent of the other Party.
This IGA shall be binding upon, and shall inure to the benefit of, the Parties and their respective
heirs, personal representatives and successors and permitted assigns.
7.11 Recitals and Exhibits. All recitals and exhibits referred to in this IGA are
incorporated herein for all purposes.
7.12 Severability. In the event a court of competent jurisdiction holds any provision of
this IGA invalid or unenforceable, such holding shall not invalidate or render unenforceable any
other provision of this IGA.
7.13 Written Notices. Written notices required under this IGA and formal
correspondence among the Parties shall be directed to the following and shall be deemed received
as of the date of hand-delivery, or as of the date indicated on the return receipt request of a certified
mailing:
If to the City:
Boulder City Manager
P.O. Box 791
Boulder, CO 80306
With a copy to:
Boulder City Attorney
13
P.O. Box 791
Boulder, CO 80306
If to the District:
Colonel Barry S Baer US Army (Retired)
Treasurer, Knollwood Metropolitan District
2265 Knollwood Drive
Boulder, CO 80302
With a copy to:
Carolyn R. Steffl, Esq.
Moses, Wittemyer, Harrison and Woodruff, P.C.
2595 Canyon Boulevard, Suite 300
Boulder, CO 80302
7.5 If the annexation is not approved by the voters in the annexation election, or the
Annexation Ordinance is not approved by the City Council,this Agreement shall be null and void,
except for the financial obligations of the District to the City for actual expenses by the City for
the design of the District Public Improvements incurred prior to the date upon which this IGA is
voided.
IN WITNESS WHEREOF, the Parties have caused this IGA to be executed as of the
Effective Date.
KNOLLWOOD METROPOLITAN DISTRICT
President
ATTEST:
Secretary
14
CITY OF BOULDER
City Manager
ATTEST:
nt2
Cit Jerk
APPROVED AS TO FORM:
City Attorney's Office
Date:
15
EXHIBIT A
AMENDED STATEMENT OF PURPOSES
KNOLLWOOD METROPOLITAN DISTRICT
(FORMERLY KNOWN AS KNOLLWOOD WATER DISTRCT)
Knollwood Metropolitan District(the"District")(formerly known as Knollwood Water District)hereby
files the following Amended Statement of Purposes with the Board of County Commissioners of the
County of Boulder, State of Colorado,pursuant to C.R.S. §32-1-208(3),and requests approval contingent
on receipt of a court order approving conversion of the District to a metropolitan district at which time
this Amended Statement of Purposes would take effect.
1. Purposes for which the District was oreanized. The purposes for which the Knollwood Water
District was organized are 1)to supply water for domestic purposes by any available means,and
2)other purposes determined by the Board Members of the District in accordance with C.R.S. §
32-1-101,et. seq.
2. Conversion to Metropolitan District. Knollwood Water District has submitted a petition for
conversion to a metropolitan district to the District Court of Boulder County pursuant to C.R.S. §
32-1-1006(2)(b),which has been referred to a vote of the eligible electors on November 3,2015.
If a majority of the eligible electors vote in favor of conversion and the court issues an order
approving conversion of the District to a Metropolitan District,the District shall henceforth be
named the Knollwood Metropolitan District,with powers and duties of a metropolitan district
under C.R.S.§32-1-1004.
3. Services and facilities provided or to be provided by the District. The services and facilities
provided or to be provided by the District are: 1)the provision of water for domestic purposes,
including but not limited to monitoring and maintaining water quantity and quality,and following
conversion to a metropolitan district,2)street improvements,through the construction and
installation of curbs,gutters,culverts,and other drainage facilities and sidewalks,bridges,
parking facilities,paving,lighting,grading,landscaping,and other street improvements,provided
that the Boulder County Engineer has approved a construction permit or other permit as required
by the Boulder County Code,and 3)safety protection through traffic and safety controls and
devices on streets and highways and at railroad crossings,provided that the Boulder County
Engineer has approved the District's exercise of the safety protection power.
4. The areas served or to be served by the District. The areas served or to be served by the
District are those areas within the boundaries of the District or that will be subsequently included
within the boundaries of the District,with current boundaries shown in the attached Exhibit,and
those areas outside the boundaries of the District that the District chooses to serve by contract.
Respectfully submitted this '?*day of oCspbs L ,2015.
KNOLLWOOD WATER DISTRICT
By: amu I �
Barry S.Ba4,Treasurer
00113698-6(00113698-6
EXHIBIT A
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EXHIBIT A
DISTRICT COURT, BOULDER COUNTY, COLORADO
Court Address:
1777 Sixth Street P.O. Box 4249, Boulder, CO, 80306-4249
DATE FILED:December 17,2015 5:13 PM
CASE NUMBER: 1965CV 18489
In the Matter of: KNOLLWOOD WATER DISTRICT
COURT USE ONLY
Case Number: 1965CV18489
Division: 3 Courtroom:
Order on Petition for Conversion to a Metropolitan District for Knollwood Water District
The motion/proposed order attached hereto: SO ORDERED.
Issue Date: 12/17/2015
An
NORMA ANGELICA SIERRA
District Court Judge
Paoe 1 of 1
EXHIBIT A
DISTRICT COURT, BOULDER COUNTY,
COLORADO
Court Address: 1777 6th Street
Boulder, Colorado 80302
Telephone: 303-441-3750
A COURT USE ONLY A
IN THE MATTER OF KNOLLWOOD WATER
DISTRICT Case Number: 1965CV018489
Division: 3
C
[PROPOSED] ORDER ON PETITION FOR CONVERSION TO A METROPOLITAN
DISTRICT FOR KNOLLWOOD WATER DISTRICT
THIS MATTER comes before the Court on the filing of a Motion for Order on Petition
for Conversion ("Petition") filed by the Petitioner for the conversion of the Knollwood Water
District ("District") in Boulder County, Colorado to a metropolitan district. This Court, being
fully advised in the premises, hereby FINDS and ORDERS:
1. The Court has jurisdiction over this matter pursuant to §32-1-1006(2), C.R.S.
2. The District's Board of Directors ("Board") adopted a Resolution authorizing conversion
to a metropolitan district ("Resolution"). That Resolution was filed with the Court as an
exhibit to the District's Petition, pursuant to §32-1-1006(2), on July 31, 2015.
3. The Court held a hearing on the Resolution on September 3, 2015.
4. After the hearing, on September 3, 2015, the Court ordered that the question of
conversion be submitted to the eligible voters of the District. The Court appointed the
Secretary of the District as the designated election official.
5. A ballot question on the conversion was referred to the eligible electors of the District at
the November 3, 2015 coordinated election, and a majority of the votes cast were in favor
1 of conversion to a metropolitan district. The electors passed the ballot measure by a vote
of 52 to 28.
6. The November 3, 2015 election was duly held in accordance with Articles 1 to 13 of Title
1, C.R.S.
7. On December 8, 2015, the Boulder County Board of County Commissioners approved
the District's amended Statement of Purposes, reflecting the proposed change from a
water district to a metropolitan district.
8. There is not another water and sanitation district or metropolitan district existing partially
or wholly within the boundaries of the District or a pending petition for organization of a
EXHIBIT A
water and sanitation district or metropolitan district existing partially or wholly within the
boundaries of the District.
9. The Court hereby finds that the District has complied with the applicable statutes and,
therefore, the conversion should be granted.
IT IS THEREFORE ORDERED that pursuant to §32-1-1006(2), C.R.S., the District is
hereby converted to a metropolitan district, possessing all of the rights, powers, and authority of
a metropolitan district under the Special District Act, including without limitation, §32-1-1004,
C.R.S., and other Colorado Law, as they may be amended from time to time, and henceforth
shall be known as "Knollwood Metropolitan District."
DATED this day of 52015. l
District Court Judge
F.,
a9 _ n
EXHIBIT B
UNPLATTED
CITY OF BOULDER
ANNEXATION MAP NW04'20'W- NO'04'20-W 443.44'-
135.25'
43.44"135.25' N76'00'00"E
16.22'
A PARCEL OF LAND LOCATED IN THE SOUTHWEST QUARTER OF SECTION 25, POINT OF BEGINNING
TOWNSHIP 1 NORTH, RANGE 71 WEST OF THE 6TH P.M..
COUNTY OF BOULDER, STATE OF COLORADO
TOTAL AREA = 28.674 ACRES 3 No Lam "
SHEET 2 OF 2 o g
9 TRACT 3298
OUTLOT CREC.NO.
KNOLLWOOD N 1099939 REC.N0.1949399 I�
FIRST ADDITION 04/29/91 06/14/99
V1
LOT 1 W
KNOLLWOOD
N13•'w 00 W
W/ gO Ofi
N20g3 p0
N6'4600"W/
159.39' 87.09' LOT 28 L,
1410'39'05"W KNOLLWOOD $
/ FIRST ADDITION .i
LOT 27
KNOLLWOOD 3.1730'01'
FIRST ADDITION LOT 2 R58971
LOT 26KNOIWOOD CH-NS 45.00-E
KNOLLWOOD 173.34'
FIRST ADDITION
UNPLATTED LOT 29 4
CITY OF BOULDER KNOLLWOOD V
SECOND ADDITION
DR's
ryo
LOT 30 1 n_ Del
0 NDI
^• � L 0 O
'h
KNOLLWOOD
6 O
3 sEcO"D ADDITION
�r1O LOT 3
0
LOT 22 KN WOOD
h^
FIRST ADDITION
= LOT 21 p 0
KOD C\ O
LOT 23 FIRST
ST ADDIADDITION V O p
LOT WIDE STRIP KNO LWOOD
KNOLLWOOD 0 B FIRST ADDITION
SECOND ADDITION KNOLLWOOD �mr�p1
FIRST ADDITION LOT 24 ?'
KNClWOOD (\ O
FIRST ADDITION `� L
PARK LOT 25 .',•4'00'00
KNOLLW000 KNOLLWOOD. R�1838.18'
/ SECOND ADDITION FIRST ADDITION L-114.37
N2'05'S0'E 655.94' LOT 20 LOT 5 CH-58L-114. 7
KNOLLWOOp
5`31 LOT 49 FIRST ADDITION KNOLLWOOD 114.34'
}4' KNOLLWOOD
SECOND ADDITION LOT 4
LOT 35 KNOLLWOOD
Jq KNOLLWOOD
269• SECOND ADDITION LOT 34 KNOLLWLOT 32
LOT 48
KNOLLWOOD SECOND ADDITION KNOLLWOW S82'3O'OO"E
SECOND ADDITION
SECOND ADDITION
S??b0• 11.7S70 '3$'W LOT 33 KNO�Lw000 .'E
Op" 71.78' KOLLW00T 147'30'00'E
W SECOND ADDITION FIRST ADDITION LOT 6 ro
176,)9, S2727'00'W KNOLLWOOD 2.57
COMMON AREA D 22.15' 7C
KNOLLWOOD Z LOT 47
VILIu ^
VILLAGE 9L KNOLLW000 Mfu �Ow 5v W
T— SECOND ADDITION LOT 18 O
S LOT 17 KNOLLWOOD (60'R.O.W.)W.) !'y
�30• LOT 36A p KNOLLWOOD FIRST ADDITION
FIRST ADDITION I7
pp� S28'00'00"W KNOLLWOOD LOT 3]A 9 LOT 10 tpO
SECOND ADDITION £C KNOLLWOOD N
COMMON AREA J 7.50 ftEPLAT A KNOLLWOOD J Z ee� FIRST ADDITION
LOT 1
COMMON
"9 SECOND ADDITION C LOT 7 -
KNCLLWOOD VILLAGE 'QQ• N83'49'10'W REPEAT q LOT 46 O
((��.�1((_� KNOLLWOOD SOro2'15"E
NLLACE 13.69' KNLOT 38 OLLWOCO SECOND ADDITION
, 22.00'
s•9TH'21' SECOND ADDITION ��((
LOT 2 R00' (.�L KNOOLLWOOD
KNOLLWOOD L-83.29' (4
VILLAGE CH_584'21'34"W
75.32' 571'58'00"W LOT WOOD LOT 8
FIRST ADOITIGN KNOLLWOOD
5.0{09'7 83.98' S24'40'00"W LOT 16 .yob•?�,°'
51 HOZ 40.00' FIRST
KNOLLWOOD
E• ��
LOT 39 LOT 45
LOT 3 LOT 5 KNOLLWOOD KNOLLWOOD 1'
KNOLLWOOD SECOND ADDITION SECOND ADDITION BSP yNM1'
KNCLLWCOD VILLAGE LOT 6 S35'55'00'W
VILLAGE KNOLLWOOD 43.00' (60, LOT 12
C
LOT 7 sgrT REC.923597 T KNOLLWOOD MAPLETON PARK
KNOLLWDDD by., LOT 40 1'WIDE STRIP FlRST ADDITION
COMMON n- KNOLLW000 OUTLOT B 9/4/69
COMMON AREA H y ML -IJ� SECOND ADDITION KNOLLWOOD
KNOLLWOOD K"0"WOO� J FIRST ADDITION
V LLAGE
a NLLAGE LOT B �Op, LOT
KNOLLWOOD SO'01'43'E
KNOLLWOOD 3' 97,40' KNOLLWLOT SOOD ON ell
$d VILLAGE S1 SECOND ADDITION FlRST ADDITION k•
.00, w a o2 Scale: 1" = 60'
70.0p• 1489'59'00"E S89'59 00'w LOT 13 , Qyti O4s
66.89' UNPLATIED KNOLLWOOD P
REC.NO. 115.29' LOT 14 FlRST ADDITION
COMMON AREA G S22'25'00'W 025428 KNOLLWOOD 0 30 80 120 ab
g KNOLLWOOD 49.50' OUTLOT A 7/7/72 OUTLOT A FIRST ADDITION
NLLAGE KNOLLWOOD KNOLLWOOO
ION Fl
SECOND ADDITRST ADDITION
ti
S44'30'00'W REPEAT A D"
21.00' N68'35'45'E
S83'15'o0"W SO'02'15'E 21.48'
uNPurTEO 22.85' UNPLATTED 149.83' 50'02'15'7 374.29'
Y
VACA D SUNSHINE AVE E AND UNPLATTED MA LETON PARK ADDI ON SCOTT,COX in ASSOCIATES,INC.
consulting engineers surveyors
CE 1530 55M Slreet Boulder,C—.80303
O
(303)444-3051
Designetl by ASB Date Scale Drawing no. SM1eet
D,.—by JAS 01/25/19 1"=60• 18313 2
Re iO2 Descri tion Date Project e
n
18313
n Cl,.�.d by AJB
F
9
1:\IIINIT R
ANNEXATION MAP
A PARCEL OF LAND LOCATED IN THE SOUTHWEST QUARTER OF SECTION 25,
TOWNSHIP 1 NORTH, RANGE 71 WEST OF THE 6TH P.M.,
COUNTY OF BOULDER, STATE OF COLORADO
TOTAL AREA = 28.674 ACRES
SHEET 1 OF 2
LEGAL DESCRIPTION
A TRACT OF LAND IN ME SOUTHWEST QUARTER OF SECTION 25,TOWNSHIP I NORTH,RANGE 71 WEST OF THE STH ST,S LEGEND
P.M.,COUNTY OF BOULDER,STATE OF COLORADO,MORE PARTICULARLY DESCRIBED AS FOLLOWS. oq
BEGINNING AT ME NORTHWEST CORNER OF KNOLLWOOD SUBDIVISION ALSO BEING THE WESTERLY RIGHT OF WAY OF PROPERTY CONTIGUOUS TO EXISTING a-
GREEN ROCK DRIVE;THENCE ALONG THE BOUNDARY OF SAID KNOLLWOOD SUBDIVISION THE FOLLOWING NINE(9) OR1vE OF BOULDER LIMITS
COURSES: CANNON MAPLETON AVE
SUNSHINE O
1, N76MO'00"E,A DISTANCE OF 189.13 FEET TO A POINT ON A CURVE;
2. THENCE ALONG TIE ARC OF A CURVE TO ME RIGHT,CONCAVE TO TIE SOUTH,HAVING A RADIUS OF 569.71
FEET AND A CENTRAL ANGLE OU 17'30'01•(CHORD BEARS N84-45'00'E.173.34 FEET),174.01 FEET; vt N
3. THENCE S86'30'00"E.A DISTANCE OF 200.00 FEET TO A POINT ON A CURVE; \ TOTAL PERIMETER OF AREA TO BE ANNEXED = 5548.2 FEET
4. THENCE ALONG ME PRC OF A CURVE TO ME RICHT,CONCAVE TO THE SOUTH.HAVING A RADIUS OF \ \ ONE SIXTH OF TOTAL PERIMETER = 924.7 FEET
ET AND
1638.18 FEA CENTRAL ANGLE OF 4'00'00"(CHORD BEARS S84'30'00"E,114.34 FEET),114.3]1 FEET; PERIMETER CONTIGUOUS TO EXISTING qtt 5274.6 FEET
LIMITS -
5. THENCE 582'30'00"E.A DISTANCE OF 6.00 FEET;
6. THENCE N73O'OO"E,A DISTANCE OF 2.5]FEET; \ \
7. THENCE SBO'39'30"E,A DISTANCE OF 118.68 FEET; 3
8. THENCE 50'02'15'E,A DISTANCE OF 22.00 FEET;
9. THENCE S42'46'15"E,A DISTANCE OF 306.15 FEET; o I SURVEYOR: SCOTT,COX&ASSOCIATES,INC.
___///// 1530 55TH STREET
THENCE ALONG ME BOUNDARY OF KNOLLWOOD FIRST ADDITION THE FOLLOWING FIVE(5)COURSES: \ / \\ \ BOULDER,COLORADO 80303
1. S42'46'15"E,A DISTANCE OF 194.04 FEET; p\
2. THENCE N6835'45"E,A DISTANCE OF 21.48 FEET; PFf'4 u
3. THENCE 50'02'15"E.A DISTANCE OF 374.29 FEET:
4. THENCE S89'59'00"W,A DISTANCE OF 115.29 FEET;
5. THENCE SO'01'43"E,A DISTANCE OF 91.40 FEET; \
oq �oo� SURVEY NOTES
THENCE ALONG ME BOUNDARY OF KNOLLWOOO SECOND ADDITON ME FOLLOWING TWENTY TWO(22)COURSES: \ 0
1. THIS MAP IS NOT A LAND SURVEY PLAT OR AN IMPROVEMENT SURVEY PLAT.ME
1. N89'59'00"E.A DISTANCE OF 86.89 FEET; \ \ PURPOSE OF THIS MAP IS TO SHOW ME AREA TO BE ANNEXED TO ME CITY OF
2. THENCE SO'02'1S"E,A DISTANCE OF 149.83 FEET; meq.\ BOULDER,COLORADO.
I THENCE S83'15'00"W,A DISTANCE OF 22.85 FEET; SITE y4
4. THENCE 544'30'00"W,A DISTANCE OF 21.00 FEET; \ p�\r \ 2. THIS ANNEXATON IS BASED ON ME FOLLOWING PLATS: KNOLLWOOD,KNCLLWOOD
5. THENCE 522'25'00"W.A DISTANCE OF 49.50 FEET; \ $ FIRST ADDITION,KNOLLWOOD FIRST ADDITION REPIAT A,KNOLLWOOD SECOND
6. THENCE S13'35'00"W,A DISTANCE OF 70.00 FEET; �\ \ ADDITION,KNOLLWOOD SECOND ADDITION REPLAY A,KNOLLWOOD VILLAGE.p\ \
7. THENCE S43'0S'DD"W,A DISTANCE OF 148.00 FEET; 3. NOTICE: ACCORDING TO COLORADO LAW,YOU MUST COMMENCE ANY LEGAL ACTION
8. THENCE 535'55'00"W,A DISTANCE OF 43.00 FEET; BASED ON ANY DEFECT IN MIS SURVEY WIMIN THREE YEARS AFTER YOU FIRST
9. THENCE 524'40'00"W,A DISTANCE OF 40.00 FEET; DISCOVERED SUCH DEFECT.IN NO EVENT,MAY ANY ACTON BASED UPON ANY
10. THENCE S1158'00"W,A DISTANCE OF 83.98 FEET; DEFECT IN MIS SURVEY BE COMMENCED MORE MAN TEN YEARS FROM ME DATE
11. THENCE S15'Ot'09"E,A DISTANCE OF 88.02 FEET TO A PONT ON A CURVE; MOUNTAIN AVE OF THE CERTIFICATION SHOWN HEREON.CRS-13-80-105(3)(1).
12. THENCE ALONG ME ARC OF A CURVE TO ME LEFT,CONCAVE TO ME SOUTH,HAVING A RADIUS OF 50.00
FEET AND A CENTRAL ANGLE OF 97'44'21"(CHORD BEARS 564'21'34"W,75.32 FEET),85.29 FEET;
13. THENCE N83'49'10"W,A DISTANCE OF 13.89 FEET:
14. THENCE S28'00'OO"W,A DISTANCE OF 1.50 FEET; CERTIFICATIDN
15. THENCE 540'30'00"W,A DISTANCE OF 139.00 FEET;
16. THENCE 527'27'00"W,A DISTANCE OF 22.15 FEET;
17. THENCE S70'09'35"W,A DISTANCE OF 11.78 FEET; THIS IS TO CERTIFY THAT THIS MAP WAS MADE UNDER MY DIRECT RESPONSIBILITY,
\ SUPERVSION AND CHECKING AND THAT IT IS A TRUE AND CORRECT
'00'00'W,A DISTANCE OF 126.]9 FEET;
18. THENCE S22REPRESENTATION OF THE AREA TO BE ANNEXED TO THE CITY OF BOULDER,
19. THENCE 53724'30"W,A DISTANCE OF 142.69 FEET;
20. THENCE N205'50"E,A DISTANCE OF 655.94 FEET; COLORADO,AND THAT AT LEAST ON 51%M(1/6)OF THE BOUNDARY OF SAID
21. THENCE N5758'20"W.A DISTANCE OF 392.20 FEET: CE PARCEL IS CONTIGUOUS TO ME PRESENT CITY OF BOULDER,COLORADO.
22. THENCE N10'39'05"W,A DISTANCE OF 159.39 FEET; BPRU \\IIIItI111�lillll�ll���2
Al aR .......SIF%•�
THENCE ALONG THE BOUNDARY OF KNOLLWOOD FIRST ADDITION ME FOLLOWING THREE(3)COURSES
E¢ _
1. N645'00"W.A DISTANCE OF 87.09 FEET; 24302_ c=
2. THENCE N20'24'00"W.A DISTANCE OF 93.00 FEET; o o: :•�
3. THENCE N13'40'00"W,A DISTANCE OF 90.06 FEET; %c"f'•,
A.JOHN BUR',PLS 24302 �iigS/0
THENCE ALONG THE BOUNDARY OF TRACT 3298 RECORDED AT RECEPTON N0.1099939 DATED 04/29/91 ME FOR AND ON BEHALF OF ��� mnNop°"`\
FOLLOWING TWO(2)COURSE: O SCOTT,Co%&ASSOCIATES,INC.
1. S85'00'00"W.A DISTANCE OF 200.00 FEET:
2, THENCE NO'04'20"W.A DISTANCE OF 135.25 FEET;
THENCE ALONG ME BOINOARY OF A TRACT OF LAND RECORDED AT RECEPTION NO.1949399 DATED 06/14/99 ;A
ME FOLLOWING TWO(2)COURSES:
1. NO'04'20"W,A DISTANCE OF 443.44 FEET;
2, THENCE N76'00'07"E,A DISTANCE OF 16.22 FEET TO ME POINT OF BEGINNING. BLVI
THIS PARCEL CONTAINS 1.249,043 SOVARE FEET(28.674 ACRES).
VICINITY MAP A
SCALE:1-=200'
NOTE: FULL-SIZED MAP IS ON SHEET 2 OF 2
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3 Drawn by JAS 01/25/19 AS SHOWN 18313 1
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3
EXHIBIT C
ANNEXATION TERMS AND CONDITIONS
RECITALS
A. Registered electors have petitioned the City of Boulder("City")to commence
proceedings for the holding of an annexation election for an area generally including the Knollwood
Subdivision,Knollwood Subdivision First Addition and Knollwood Subdivision Second Addition,plus
two adjacent parcels at 150 Green Rock Drive and 2285 Knollwood Drive, and more particularly
described on Exhibit A to Resolution1256(collectively, the"Annexation Area").
B. With the exception of the property at 150 Green Rock Drive,the properties within the
Annexation Area are located within the boundaries of the Knollwood Metropolitan District("District").
Properties within the District are hereafter referred to as"District Properties". Currently, the District
provides water to District Properties, as well as some other governmental services. The property at 150
Green Rock Drive is connected to the City of Boulder's water utility.
C. With annexation, petitioners are seeking to connect the District Properties to the City's
water utility.
D. To connect to the City's water utility, water mains("New Mains")have to be constructed
within the Annexation Area's rights-of-way,water meters have to be moved into the rights-of-way or, if
approved by the City Manager, into public easements and the rights-of-way have to be improved("Street
Improvements"). The New Mains, service lines to meter pits, and meter pits installed by the City, and
Street Improvements are hereafter collectively referred to as"District Public Improvements". The City is
planning to install the District Public Improvements.
E. The cost of construction of the District Public Improvements will be an obligation of the
owners of the District Properties,planned to be paid and financed through the District as set forth below,
by certification of an annual mill levy. To allow for payment and financing of District Public
Improvements through the District,the payment of costs for the construction of the District Public
Improvements will be billed to the District Property owners only in the event and to the extent the District
has not paid the construction costs of the District Public Improvements.
F. Pursuant to Section 9-2-17, "Annexation Requirements,"B.R.C. 1981, annexation of land
to the City of Boulder shall not create an unreasonable burden on the physical, social,economic, or
environmental resources of the City. To ensure this requirement is met terms and conditions("Terms and
Conditions") shall be imposed on the individual property owners within the Annexation Area.
G. The Terms and Conditions create the obligations for individual property owners within
the Annexation Area. A separate Intergovernmental Agreement("IGA")between the City and the
District addresses obligations of the District in this annexation,the District's governmental powers
following annexation, and the process of dissolution of the District following connection of the District
Properties to the City's water utility.
NOW,THEREFORE, in consideration of the recitals,the following Terms and Conditions shall
be imposed upon the annexation to the City of Boulder of the Annexation Area:
EXHIBIT C
1. District Dissolution
As a requirement of annexation,the owners of District Properties shall use their best efforts to obtain
a court order pursuant to Section 32-1-707,C.R.S., dissolving the District within five years of the
effective date of the annexation ordinance or within two years of the City's final acceptance of the
District Public Improvements under the City's construction contract for the District Public Improvements,
whichever occurs later. Such order of dissolution shall dissolve the District for all purposes except as
necessary to adequately provide for the payment of remaining financial obligations or outstanding debt of
the District. A plan for dissolution shall adequately provide for the payment of such financial obligations
and debt.
2. Intergovernmental Agreement
The annexation shall be conditioned on the execution of an IGA between the City of Boulder and the
District,to be executed by the District prior to a public hearing by the City Council to determine if the
proposed annexation complies with the applicable state law and whether to impose terms and conditions
on the annexation pursuant to Section 31-12-108, C.R.S. After approval by the District, any changes to
the IGA would be subject to approval by the District Board. No changes will be made to the Terms and
Conditions after the annexation election,unless approved by the voters in a new annexation election.
The IGA shall provide for(a)the services that may be provided by the District between the effective
date of the annexation and District dissolution, (b)financing and payment of the District Public
Improvements, and(c)the services provided by the District that may be assumed by a unit owners'
association("HOA")after dissolution.The IGA will also require the District to assist the property owners
within the boundaries of the service area of the District in creating a common interest community and a
unit owners' association consistent with Sections 38-33.3-101, et seq., C.R.S. prior to dissolution of the
District. If an HOA is formed, it may provide services consistent with Sections 38-33.3-101, et seq.,
C.R.S., including covenant enforcement and snowplowing, and shall own and maintain any outlots within
the Annexation Area that are currently owned by the District. If, at the time the District dissolves, any
outlots owned by the District have not been conveyed to an HOA, then,prior to dissolution of the District,
any such outlots shall be conveyed to the City.
3. District Public Improvements
a. Construction of District Public Improvements. Following annexation,the City plans to construct
the New Mains and Street Improvements in the Annexation Area to serve District Properties. The Street
Improvements are planned be constructed generally where the existing streets are located,over the area
where the New Mains are being constructed, and as approximately 22-foot wide rural residential streets
without curb, gutter, sidewalks,or streetlights.
As part of the District Public Improvements,the City will install water service lines from the New
Mains to existing or new meter pits within the public right-of-way or, if approved by the City Manager,in
a public easement.
b. Construction of Service Lines to Homes. Pursuant to the IGA,no later than thirty days following
the City's construction and final acceptance of a New Main and service line from the New Main to the
meter pit serving a property,the District shall obtain any permits required for work in the City's right-of-
way or public easements and install, at its cost,a service line connection from any new meter pits to the
existing meter pit and new pressure reducing valves on such property. The owners of the District
Property shall provide the District with all necessary approvals and rights of access to perform this work.
If the District does not complete this work within the thirty-day time frame, no later than within 60 days
EXHIBIT C
following the City's construction and final acceptance of the New Main and service line from the New
Main to the meter pit serving the property,the individual property owners, at their cost, shall cause
installation of such service line and pressure reducing valves and shall ensure completion and
compatibility of the new service line with the City's water service. It is the individual property owners'
responsibility to connect a service line from the meter pit serving the property to the structure on the
property being served.
Upon completion of such work by the District or the property owners and acceptance thereof by the
City,the City will install the existing meter in the meter pit and will connect the property to City water.
The City will consider a pilot program for the District Properties to allow temporary electronic meter
reading.
c. Connection to City Water System. Upon completion of the New Mains that will serve the
Annexation Area,property owners within the Annexation Area shall not connect to or be served by any
water system other than the City's and shall connect to the City water system when so required by the
City Manager.
d. Payment if District Fails to Pay. In the event that the District has not paid for the construction of
the District Public Improvements,within 180 days of the City's final acceptance of the District Public
Improvements, each owner of a District Property shall pay the then-applicable water plant investment
fees, installation charges and their share of the unpaid costs of constructing the District Public
Improvements. The cost of the District Public Improvements shall be the original cost of design,
purchase,construction, and installation,but excluding the cost of connecting the service line of 150 Green
Rock Drive to the New Mains and excluding the cost of up-sizing a portion of the new main in Green
Rock Drive from an 8-inch line to a 12-inch line,the total to be divided equally among the District
Properties.
The property at 150 Green Rock Drive will not be responsible for a share of the costs of the District
Public Improvements and associated fees as it is currently connected to the City's water utility.
For purposes of these Terms and Conditions, the cost of constructing the District Public
Improvements shall include all applicable costs, fees, and charges associated with the design,purchase,
construction and installation of the District Public Improvements,the management and supervision of the
construction and installation of the District Public Improvements by City contractors, and the connection
of District Properties to the New Mains. If not paid by the District,the City will,in good faith,consider
creating a financing option to assist District Property owners in paying the amount owed by a District
Property owner for the District Public Improvements to the City.
e. Vacant Property. Any property vacant(without a dwelling unit) at the time of construction of the
District Public Improvements will be responsible for the full,then-applicable in-City plant investment
fees,and tap, service line and meter charges, and its share of the District Public Improvement
construction costs(unless paid by the District) at the time of issuance of a building permit to construct a
new dwelling unit.
f. 150 Green Rock Drive. The owner of the property located at 150 Green Rock Drive currently
served by City water shall connect to the New Mains at the time so required by the City Manager. The
City shall pay the costs associated with connecting the existing service line for the 150 Green Rock Drive
property to the New Mains.
EXHIBIT C
4. Stormwater and Flood Plant Investment Fees
a. Rate. The property owners in the Annexation Area shall pay the stormwater and flood plant
investment fee(hereafter referred to as"Storm PIF") at the rates applicable in 2018.
b. Pa, ment. The Storm PIF will be charged to the property owners in a City of Boulder utility bill no
earlier than 30 days following the effective date of the annexation. Within 10 days of a property owner's
receipt of that utility bill,the property owner shall pay the Storm PIF that is due pursuant to the Boulder
Revised Code and at the rate applicable in 2018.
c. Payment Plan Option. Instead of payment-in-full at the time of receipt of the utility bill for this fee,
a property owner may agree in writing to pay the Storm PIF in monthly installments over a period of 10
years from the date of the first bill for the Storm PIF. At the time payment is due for each monthly
installment, in addition to the monthly installment, a payment plan charge shall be paid in the amount of
30 % of the monthly installment. There will be no penalty for prepayment of the remaining outstanding
principal amount due, and no payment plan charge for prepayments. The first installment shall be paid
within 10 days after the date of receipt of the first bill for the Storm PIF. For any property which
participates in the phased repayment program, the property owner shall pay the entire outstanding
obligation for the Storm PIF, including any payment plan charges that are due for missed monthly
payments, and the full unpaid principal amount at such time as the property is sold. No penalty or
payment plan charge will be imposed for pre-payment of the Storm PIF in whole or in part. The phased
repayment program will be provided by the City only to those properties that will connect to City water at
the time that it is first available.
d. Billing and Collection. The payment-in-full charge and the monthly installment due under the
phased repayment plan may be included on the same bill that includes water,wastewater, or storm water
and flood management services charges or may be included on a separate bill as provided in Title 11,
"Utilities and Airport," B.R.C. 1981. The billing,payment, and collection provisions of Sections 11-5-
12, "Billing and Payment of Fees," 11-5-13,"Certification of Unpaid Charges to County Assessor,"and
11-5-14, "Charges are Lien on Property," B.R.C. 1981, shall apply to the billing,payment, and collection
of the Storm PIF, including installments and payment plan charges due under the phased repayment
program for the Storm PIF, and any interest on delinquent payments due thereon.
5. Flood Control Easements
Properties located within the conveyance zone, as delineated on the City's regulatory floodplain
mapping,will be required to dedicate to the City a flood control easement. This easement must be
dedicated prior to issuance of a permit for work on the property under Title 10,"Structures," B.R.C. 1981,
or at such time as improvements to the Sunshine Creek and/or Sanitas Creek channel are proposed to be
made by the City of Boulder and shall be based on the then-applicable floodplain mapping.
6. Zonin
The properties in the Annexation Area would initially be zoned Residential Estate(RE).
7. Subject to City Codes and Policies
Upon annexation,the properties in the Annexation Area will be subject to all laws,rules,regulations,
and administrative orders of the City of Boulder except as expressly modified by these terms and
conditions. Annexation in accordance with the terms and conditions contained herein shall in no manner
EXHIBIT C
waive the present or future applicability of said laws,rules,regulations and administrative orders.
Existing legal nonconforming uses and nonstandard buildings and structures will be allowed to continue
to exist. Section 9-10-3, "Changes to Nonstandard Buildings, Structures, and Lots and Nonconforming
Uses,"B.R.C. 1981, applies to changes to nonstandard buildings and nonconforming uses. It is
understood that this section shall not be constructed to permit a property to constitute a nuisance or to
cause a hazard under the City's life safety codes.
8. Water Rights
At the time of connection to the City's water system,but in no event later than issuance of a building
permit for the property, any property owner with water or ditch rights used on or appurtenant to the
property, shall sell or offer a right of first refusal to the City, consistent with Section 11-1-19, "Water and
Ditch Rights,"B.R.C. 1981, for any water rights appurtenant to the property, except that in the event a
water or ditch rights owner has entered into an agreement with the City that contains provisions that are in
conflict with Section 1 I-1-19, B.R.0 1981, such as the Settlement Agreement executed by the City and
The Silver Lake Ditch& Reservoir Company recorded in the office of the Boulder County Clerk and
Recorder's Office at Reception No. 03046201, such agreement shall control.
9. One Dwelling Unit per Lot or Parcel
Due to the area's topography and location on the western boundary of the City,no lot or parcel within
the Annexation Area shall be developed with more than one principal dwelling unit.
10. No Subdivision
Due to the area's topography and location on the western boundary of the City, no,lot or parcel within
the Annexation Area shall be subdivided to create an additional lot following annexation to the City.
11. Wetland Mapping
Prior to annexation, all stream,wetland,water bodies and buffer areas on the properties in the
Annexation Area will be mapped by the City after the fee prescribed in Section 4-20-53, "Stream,
Wetland and Water Body Permit and Map Revision Fees," B.R.C. 1981, is paid. Pursuant to the IGA, this
fee will be paid by the District. This mapping will include a functional evaluation of the stream,wetland
or water body. The approved mapping and evaluation shall be adopted as an update to the regulatory
maps as a part of the annexation ordinance.
12. Inclusion into the Municipal Subdistrict of the Northern Colorado Water Conservancy District
The properties in the Annexation Area shall be included in the Municipal Subdistrict of the Northern
Colorado Water Conservancy District pursuant to the process in Section 37-45-136(3.6), C.R.S.
13. Use of Existing Wells
The City will not prohibit a property owner from using existing,privately-owned wells for non-
potable irrigation purposes on such property following annexation, even after a property is served by the
City water utility. Existing wells that are used for irrigation purposes must be registered and permitted by
the State Engineer's Office and operated in accordance with any augmentation and other requirements
under Colorado water law. Existing wells shall not be used for domestic water purposes once the
property is connected to the City's water utility. No person shall make any cross-connections to the
City's municipal water supply system from any well on the property.
EXHIBIT C
14. Historic Drainage
Drainage from properties in the Annexation Area shall be conveyed in an historic manner that does
not materially and adversely affect abutting properties.
15. Wood Roofs
Wood roof covering materials are prohibited in the City of Boulder. Immediate replacement shall not
be required; however, no person owning a building with wood roof covering materials in the Annexation
Area shall install any wood roof covering materials following annexation. Any installation,repair or
replacement must utilize approved roof covering materials which conform to the applicable requirements
of Title 10,"Structures,"B.R.C. 1981. However, this section shall not be construed to permit a property
to constitute a nuisance or to cause a hazard under the City's life safety codes.
16. Rental Property Requirements
If a property is used as rental property at the time of annexation, it shall be brought into compliance
with Chapter 10-3,"Rental Licenses,"B.R.C. 1981,within 90 days of the effective date of the annexation
ordinance; for a rental license issued within 90 days of the effective date of the annexation ordinance the
energy efficiency requirements of Chapter 10-2,"Property Maintenance Code,Appendix C—Energy
Efficiency Requirements,"B.R.C. 1981, shall be waived. Any subsequent application for a new or
renewal of a license and any rental license for a new building or new dwelling unit on the property shall
be subject to the energy efficiency requirements of Chapter 10-2, B.R.C. 1981.
17. Breach
In the event a property owner fails to pay any monies due under these Terms and Conditions or fails
to perform any affirmative obligation hereunder,the City may collect the monies due in the manner
provided for in Section 2-2-12, B.R.C. 1981,as amended, or the City may perform the obligation on
behalf of the property owner, and collect its costs in the manner provided in these Terms and Conditions.
The annexation ordinance shall be the enabling ordinance required under Section 31-20-105,C.R.S.
authorizing the collection of those debts.
18. Annexation Agreement
Each property in the Annexation Area shall be subject to these Terms and Conditions unless a
separate annexation agreement has been executed by the City and the property owner that modifies the
Terms and Conditions.
EXHIBIT D
District Public Improvements
The District Public Improvements,as set forth below, shall be constructed by the City and paid for
by the District, except as set forth below or in the IGA.
1) Installation of new water 8-inch PVC water mains in Green Rock Drive, Knollwood
Drive, Willow Glen Court and Brookside Court, except that 12-inch water mains shall be installed
from the connection into the City's main in Sunshine Canyon Drive to the intersection of Green
Rock Drive and Knollwood Drive (the City shall pay for the difference in cost between an 8 inch
main and the 12 inch main);
2) Construction of a connection of the new main in Green Rock Drive to City's 30-inch
main in Sunshine Canyon Drive;
3) Construction of an 8-inch connection of the new water main in Willow Glen Court to
the City's 8-inch PVC main.
4) Construction of four service connections for properties located on Spruce Street.
5) Installation of new 8-inch PVC pipeline to create a loop connection between the new
water mains in the Green Rock Drive and Knollwood Drive.
6) Connection of service lines from a meter pit for each home within the District and 150
Green Rock Drive into the new mains; provided the City shall pay for the connection and service
line for 150 Green Rock Drive. The District and individual property owners in the District shall
be responsible for funding, constructing and connecting a compatible service line from the meter
pit to the structure to be served and pressure reducing valve.
7) Connection of one irrigation tap (to be owned by the District and then the HOA) at
Outlot A, 101 Green Rock Drive, Knollwood Subdivision recorded in the records of Boulder
County at Planfile R. 1-3-9, for irrigation of common improvements.
8) Installation of 10 new fire hydrants and removal of existing hydrants.
9)Full depth asphalt (6-inch asphalt with a 6-inch road base) to replace existing roads (not
to exceed 22 feet in width) on Green Rock Drive, Knollwood Drive, Willow Glen Court and
Brookside Court. No widening of existing streets, curbs, or gutters shall be required.
EXHIBIT E
PLAN FOR DISSOLUTION
OF KNOLLWOOD METROPOLITAN DISTRICT
This Plan for Dissolution of Knollwood Metropolitan District (the "District") describes
how the District's existing services will be continued and details the plan for adequately covering
the District's financial obligations and outstanding bonds.
I. Background
The District was formed as the Knollwood Water District in 1965 to provide water service
to the District's residents and was converted to a metropolitan district in 2015 to also provide street
improvements and traffic and safety controls. The Second Amended Statement of Purposes
attached as Exhibit A was approved as a condition of the annexation pursuant to the IGA described
below.
The District and the City of Boulder ("Boulder") entered into an Intergovernmental
Agreement Regarding Annexation and Transition of Municipal Services with an effective date of
2019 (the"IGA"), incorporated herein by this reference. The IGA sets forth details
regarding the District's powers after annexation, dissolution of the District for all purposes except
as necessary to adequately provide for the payment of remaining financial obligations or
outstanding debt of the District, construction of water and street infrastructure for the District,
Boulder's provision of the District's essential services following the District's dissolution,
acquisition of the District's infrastructure and facilities by Boulder, provisions for Boulder to fix
rates, tolls, fees, or charges for services provided, and provisions regarding contract modification.
By Ordinance No. , the Boulder City Council annexed the entire District into Boulder's
municipal boundaries effective . Following annexation and connection to
Boulder's water system, Boulder will provide the District's residents with water services and
manage the public streets as part of the Boulder municipal systems,which are the essential services
provided by the District.
II. Dissolution
By Resolution No. , dated , the Board of Directors of the District (the
"Board") determined that it was in the best interest of the District to dissolve in accordance with
this Plan of Dissolution to adequately provide for payment of existing financial obligations and
outstanding debt. This Plan for Dissolution provides for dissolution of the District for all purposes
except for the limited powers reserved herein and to the extent necessary to fulfill the District's
financial obligations and outstanding debt. This Plan will be attached to the petition for dissolution
filed with the court. The District will comply with the requirements of§§ 32-1-701 to 710,C.R.S.,
including holding a dissolution election and seeking a court order dissolving the District for all
purposes except those reserved herein in accordance with then-applicable law ("Limited
Dissolution Order").
Following the Limited Dissolution Order,the Boulder City Council shall serve as the Board
of the District and effectuate this Plan of Dissolution(the"Limited-Purpose Board of Directors").
The Limited-Purpose Board of Directors will have the authority to adequately provide for the full
EXHIBIT E
payment, satisfaction, and discharge of the Outstanding Debt as described in Section IV as
provided in this Plan for Dissolution.
III. Continued Provision of the District's Services
A. Water Service
Boulder has been providing water services within the District as provided in the IGA. The
District has abandoned or conveyed all of its wells, water rights, and other water infrastructure as
provided in the IGA. As the sole water service provider, Boulder is responsible for operating and
maintaining all facilities and infrastructure necessary to provide water service to the District's
residents, consistent with its provision of water to other Boulder water customers. Boulder will
continue to provide water service within the District to provide one of the two essential services
of the District after dissolution.
B. Boulder to Provide Street Improvements and Traffic and Safety Control
Upon annexation, the public streets within the District became public streets within
Boulder, and Boulder has been providing street improvements and traffic and safety controls in
the District consistent with its provision of street services to other Boulder streets ("Street
Services"). Upon dissolution, Boulder will continue to provide street service within the District
as the other essential service of the District.
C. HOA to Provide Community Services
The District has also provided other non-essential services to residents, including
contracting for snowplowing of the public streets within the District boundaries and operation and
maintenance of the outlots shown on recorded plats for the area within the boundaries of the
District that are owned by the District (collectively referred to herein as the "Outlots")
("Community Services"). The residents of the District had the right to organize a unit owners'
association to provide these Community Services.
IV. Existing Financial Obligations and Outstanding Debt
The District will continue in existence to the extent necessary to adequately provide for payment
of the District's financial obligations and outstanding debt. The District's "Outstanding Debt" is
set forth in the following table:
Name Date Issued Loan Interest Maturity Date Balance
Amount Rate Outstanding
General Obligation Loan February 8, $ 500,000 4% December 1,2031
Series 2017: 2017 Draw and 2017
2018 Draw
General Obligation Loan
Series 2019
00185950-10 2
EXHIBIT E
A. Continuing Powers for the Limited-Purpose Board of Directors
Following the Limited Dissolution Order, the Limited-Purpose Board of Directors will
have the authority to exercise the following powers until all principal and interest payments on the
Outstanding Debt are fully paid, satisfied, and discharged:
1. Keep and maintain records and books of account in accordance with
generally recognized principles of accounting.
2. Prepare an annual budget and appropriate funds.
3. Prepare or contract for the preparation of an annual audit, if required by law
or contract.
4. Open, manage, and maintain the necessary bank accounts to comply with
the terms of the Outstanding Debt, including, but not limited to, holding
reserve funds.
5. Adjust and certify a mill levy to the Board of County Commissioners of
Boulder County in an amount sufficient to pay the total interest and
principal payments due in the following year for the Outstanding Debt.
6. Collect the mill levy from the Board of County Commissioners and
appropriate those funds to cover principal and interest payments for the
Outstanding Debt due each year.
7. Enforce collection of any taxes certified and assessed by the District, at the
time and in the form and manner as other general taxes, and with like
interest and penalties.
8. Prepay, in whole or in part, the Outstanding Debt.
9. Maintain proper insurance.
10. Comply with all terms and conditions, covenants,or reporting requirements
contained in the Loan Agreements or Bond Resolutions for the Outstanding
Debt.
In addition to the authority described above, the Limited-Purpose Board of Directors will
have any necessary or implied authority required to ensure full payment, satisfaction, and
discharge of the Outstanding Debt. The Limited-Purpose Board of Directors shall act in good faith
and will be subject to limitations contained in the voter authorization pursuant to Art. X, Sec. 20
of the Colorado Constitution.
The Limited-Purpose Board of Directors will also have the authority to ensure that any
outstanding balances or excess District funds not required for payment of the Outstanding Debt
are applied to reduce the rates,tolls,fees,and charges fixed by Boulder for providing water service,
street improvements, and traffic and safety controls consistent with § 32-1-708(1), C.R.S.
00185950-10 3
EXHIBIT E
V. Completion of Plan for Dissolution
This Plan for Dissolution provides for the adequate satisfaction of the District's financial
obligations and outstanding debt and covers the continued provision of the District's essential
services. When the Outstanding Debt is fully paid, satisfied, and discharged, the District will be
completely dissolved and have no continuing authority or powers. Boulder or the Board of
Directors of the District will petition for a final court order of dissolution at that time.
00185950-10 4
EXHIBIT A TO EXHIBIT E
SECOND AMENDED STATEMENT OF PURPOSES
KNOLLWOOD METROPOLITAN DISTRICT
(FORMERLY KNOWN AS KNOLLWOOD WATER DISTRICT)
Knollwood Metropolitan District (the "District") (formerly known as the Knollwood Water
District)hereby files the following Second Amended Statement of Purposes with the City Council
of the City of Boulder, State of Colorado, (the "City") pursuant to C.R.S. § 32-1-208(3), and
requests approval.
RECITALS
WHEREAS, the Knollwood Water District was originally organized for the following
purposes: 1)to supply water for domestic purposes by any available means, and 2) other purposes
determined by the Board Members of the District in accordance with §§ 32-1-101, et. seq., C.R.S.
WHEREAS, the Knollwood Water District converted to a Metropolitan District by order
of the District Court of Boulder County dated December 17, 2015 in Case No. 1965CVO18489.
The Board of County Commissioners of Boulder County approved an Amended Statement of
Purposes for the District by Resolution 2015-126 dated December 10, 2015, nunc pro tunc
December 8, 2015, which added street improvements and safety protection through traffic and
safety controls and devices to the types of services and facilities to be provided by the District.
WHEREAS, on , 2019, the City Council of the City passed Ordinance
, approving annexation of certain property, including all of the property within the
boundaries of the District.
WHEREAS, on , 2019, the City Council passed Resolution No.
accepting designation as the approving authority for the District.
WHEREAS, the District and the City entered into an Intergovernmental Agreement
Regarding Annexation and Transition of Municipal Services dated , 2019 (the "IGA"),
pursuant to which the City agreed to construct and the District agreed to finance certain water and
street improvements to enable the City to provide water for domestic purposes to the properties
within the boundaries of the District. The District further agreed in the IGA to submit this Second
Amended Statement of Purposes to the City to delineate the District's powers and agreed to a
dissolution plan.
NOW, THEREFORE, the District files with the City Council the following Second
Amended Statement of Purposes and requests approval thereof:
1. Purposes for which the District is organized. The purposes for which the Knollwood
Metropolitan District is organized are, to the extent consistent with the IGA, 1) to provide
water services, 2) to provide street improvements and safety protection through snow
plowing, and 3)to enforce recorded covenants for the Knollwood Subdivision,Knollwood
Subdivision First Addition, and Knollwood Subdivision Second Addition.
EXHIBIT A TO EXHIBIT E
2. Services and facilities provided or to be provided by the District. Subject to the
provisions of this Section 2 and Section 3,below,and to the extent consistent with the IGA,
the facilities and services to be provided by the District are: 1) the provision of water for
domestic purposes, 2) financing and construction of water improvements, 3) payment of
water plant investment fees, annexation-related fees and other fees required for connection
to the City's water system, 4) financing of and contracting for street improvements, 5)
obtaining permits and contracting for snowplowing, and 6) enforcement of recorded
covenants for the Knollwood Subdivision, Knollwood Subdivision First Addition, and
Knollwood Subdivision Second Addition.
Pursuant to the IGA,the District is limited to exercising the following powers in connection
with provision of these services:
A. Incurring and paying financial obligations, consistent with the IGA.
B. Assessing a mill levy, fees, and any special assessments necessary to pay operating
costs and any debt of the District and cover the costs of the District until the District
has fully discharged all financial obligations.
C. Providing water supply, treatment and delivery services within the District, until
connection to the City's water system, and billing for fees, costs and charges associated
therewith.
D. Operating and maintaining the District water system until conveyance to the City or
abandonment per the IGA.
E. Operating and maintaining outlots owned by the District, until conveyance to an HOA
or the City.
F. Abandoning District wells and property and/or conveying real and personal property to
the HOA or the City.
G. Contracting for construction or installation of water system and street improvements,
which are related to or necessary for: a) water service by the District until connection
to the City, b) properties within the District to receive water service from the City; c)
completion of annexation; or d) fulfillment of District duties under the IGA.
H. Acquisition of easements or other property interests needed for the District public
improvements, set forth in Section G above, provided that the City's prior approval is
required before the District exercises its power of eminent domain.
I. Snow removal on streets within the District.
J. Complying with and enforcing terms of the IGA and agreements with water users.
K. Enforcement of covenants not inconsistent with City regulations and requirements as
contained in the Declarations of Covenants, Conditions and Restrictions, recorded in
the real property records of the County Clerk and Recorder of Boulder County on July
EXHIBIT A TO EXHIBIT E
23, 1965 for the Knollwood Subdivision at reception number 789376, on November 4,
1966 for the Knollwood Subdivision First Addition at reception number 831673, and
on October 15, 1969 for the Knollwood Subdivision Second Addition at reception
number 893916, as amended.
L. Cooperation and assistance to homeowners regarding organization of an HOA and
amendment of covenants.
M. Performing obligations of the District required by Colorado law, including budgeting
and auditing,required elections, and obligations to accountants, auditors and attorneys.
N. All powers set forth in paragraph 3 below.
O. Any additional necessary powers or implied authority required to provide water service
and satisfy the terms of the IGA.
P. Other powers approved by the City in advance in writing.
3. Future Dissolution and Limitation of Powers. Upon the later of: a) ,
2024 (five years after the effective date of the Annexation Ordinance); or b)two years after
the City's final acceptance of the water system and street improvements necessary to
provide water service to the properties within the District (the District Public
Improvements), the District may only exercise the following powers necessary to
adequately provide for the payment of all remaining financial obligations or outstanding
debt of the District at such time(the"Outstanding Debt") or powers expressly approved by
the City in writing in advance:
A. If an Order of Dissolution of the District has been entered by the District Court of
Boulder County, all powers listed in the Order of Dissolution; or
B. If no Order of Dissolution has been entered, the District's Powers will be limited to the
following powers:
1. Keeping and maintaining records and books of account in accordance with
generally recognized principles of accounting.
2. Preparing an annual budget and appropriating funds.
3. Preparing or contracting for the preparation of an annual audit, if required
by law or contract.
4. Opening, managing, and maintaining the necessary bank accounts to
comply with the terms of any Outstanding Debt, including, but not limited
to, holding reserve funds.
5. Adjusting and certifying a mill levy to the Board of County Commissioners
of Boulder County in an amount sufficient to pay the total interest and
EXHIBIT A TO EXHIBIT E
principal payments and any fees due in the following year for all
Outstanding Debt.
6. Collecting the mill levy from the Board of County Commissioners and
appropriating funds to cover principal, interest and fee payments for the
Outstanding Debt due each year.
7. Enforcing collection of any taxes certified and assessed by the District, at
the time and in the form and manner as other general taxes, and with like
interest and penalties.
8. Prepaying, in whole or in part, the Outstanding Debt.
9. Maintaining proper insurance.
10. Complying with all terms and conditions, covenants, or reporting
requirements contained in any loan agreements, bond resolutions or other
agreements for the Outstanding Debt.
11. Any additional necessary powers or implied authority required to ensure
full payment, satisfaction, and discharge of the Outstanding Debt.
12. Ensuring that any outstanding balances or excess District funds not required
for payment of the Outstanding Debt are applied to reduce the rates, tolls,
fees, and charges fixed by the City for providing water service, street
improvements, and traffic and safety controls consistent with
§ 32-1-708(1), C.R.S.
4. The areas served or to be served by the District. The areas served or to be served by the
District are those areas within the boundaries of the District or that will be subsequently
included within the boundaries of the District, with current boundaries shown in the
attached Exhibit.
Respectfully submitted this day of , 2019.
KNOLLWOOD WATER DISTRICT
By:
Alan Teran, President
EXHIBIT - DISTRICT BOUNDARY MAP
MAPwpppY
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A PARCEL OF LAND LOCATED IN THE SOUTHWEST QUARTER OF SECTION 25, E
TOWNSHP 1 NORTR RANGE 71 WEST OF THE 6TH PM, F
COUNTY OF BOULDER STATE OF COLORADO 8
TOTAL AREA-28.674 ACRES
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