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HomeMy WebLinkAbout9.0 BOCC Staff Report 07.05.2011REQUEST: BOCC 07/05/11 FJ PROJECT INFORMATION AND STAFF COMMENTS Acknowledgement of Completion of Subdivision Improvements Agreement (SIA) and Release of Letter of Credit APPLICANT / OWNER: Una Development, LLC (Leslie and George Strong) LOCATION: 0070 County Road 300 - 5 Miles west of Parachute located in the SW 1/4 Section 27, Township 7 South, Range 96 West of the P.M. PROPERTY SIZE: 17.5 acres ACCESS: CR 300 EXISTING ZONING: Strong PUD I. BACKGROUND On October 11, 2010, the Board of County Commissioners approved the Strong Subdivision Final Plat. The BOCC required internal subdivision improvements as well as off-site (CR 300 and State Highway 6 and 24 intersection improvements) memorialized in the Subdivision Improvements Agreement. To date, all of the internal improvements have been completed and verified by the Applicant's engineer as shown by the attached letter. Additionally, the Applicant paid their fair - share of costs for the off-site intersection improvements. Currently, Alpine Bank holds a Letter of Credit to the benefit of Garfield County for those internal improvements in the amount of $75,323.00. II. ACTION REQUESTED OF BOCC The Applicant has completed the internal improvements to the satisfaction of the County Building & Planning Department as well as the Colorado River Engineering, Inc. Staff recommends the Board of County Commissioners authorize the Chairman to 1) sign the Acknowledgment of Satisfaction of the Subdivision Improvements Agreement and 2) release the Letter of Credit. 1 ACKNOWLEDGMENT OF SATISFACTION SUBDIVISION IMPROVEMENT AGREEMENT STRONG SUBDIVISION Recitals 1. UNA DEVELOPMENT, LLC, [hereinafter "Owner") entered into a Subdivision Improvement Agreement (SIA) with the Board of County Commissioners of Garfield County, Colorado (hereinafter "Board"), recorded as Reception No. 792947 of the Garfield County records on October 13, 2010, for the improvements of the STRONG SUBDIVISION. 2. An irrevocable Letter of Credit was delivered to the County in the amount of $75,323.00 in order to secure the subdivision improvements to be constructed by the Owner as required in the SIA. 3. As verified in the attached statement from Chris Manera, PE of Colorado River Engineering, Inc. dated May 16, 2011; all the remaining improvements have been completed consistent with the improvements described in the Subdivision Improvements Agreement. Acknowledgement NOW THEREFORE, at the request of the Owner, and in consideration of the premises and the prior agreements contained in the SIA, the BOCC hereby: 1. Acknowledges full satisfaction of the security requirements of the SIA; 2. Authorizes the final release of Letter of Credit #4160239433 being held by Alpine Bank for the amount $75,323.00. BOARD OF COUNTY COMMISSIONERS ATTEST: OF GARFIELD COUNTY, COLORADO By: Clerk to the Board John Martin, Chairman Date: ftl Co ORAD • ENGINEER 1[1/416 1sCOR POR Arco May 16, 2011 Strong PUD George Strong PO Box 808 Silt, CO 81652 Via email: Strong@sopris.net RE: Job 1777 - Strong PUD - Public Improvements Dear George: Colorado River Engineering, Inc. (CRE) has inspected the construction of Public Improvements at the Strong PUD and has found them to be in conformance with the approved plans. This letter shall serve as certification that work has been completed. The attached Table 1 identifies the work tasks that were completed as part of our inspection work. CRE has also made recommendations on implementation of stormwater BMP's and revegetation which have been implemented. The "Certification for the Construction of as Approved Form" for the water system has been forwarded to the Colorado Department of Public Health and Environment for their records. If you have any questions, please do not hesitate to call 970-625-4933. Sincerely, Chris Manera P.E. Cc: Cmcm M 1CREjobflles1777-Strong SubdivisionkPublicImprovements5-16.2011 doc P.O. Box 1301 • Rifle, CO 81650 • Tel. 970-625-4933 • Fax 970-625-4564 Table 1 - Strong PUD - Potable Water System & PUD Improvements Engineers Estimate of Probable Construction Costs - Subdivision Improvements Quantity Units Unit cost Cost Water Disinfection System Grundfos SQE Pump Pulsatron Chemical Feed Pumps Well Pump Control 55 -Gal NSF Chlorine Solution Tank Chlorine solution Injectors Test Kit Water Meter, Misc Pumphouse Plumbing Fittings Pumphouse Electrical Parts (disconnect, heaters, lights etc) Storage Tanks - 1,100 gal NSF Pumphouse & Doors Plumber Electrician Certified Pump Installer Well Well Pad Well Grundfos SQ Pump Meter Existing Building Zao Engineers Estimates Water Lines 800 -feet, meter pits Telephone, Electric Roadway Drainage 1 each 2 each 1 each 1 each 2 each 1 each 1 LS 1 LS 2 each 200 sq ft 30 hrs 30 hrs 20 hrs 1 each 1 each 1 each 1 each 1 LS 1 LS 1 LS $3,000.00 $400.00 $500.00 $100.00 $100.00 $75.00 $1,200.00 $1,500.00 $1,500.00 $70.00 $75.00 $75.00 $100.00 $5,000.00 $250.00 $3,000.00 $200.00 $3,000.00 $800.00 $500.00 $100.00 $200.00 $75.00 $1,200.00 $1,500.00 $3,000.00 $14,000.00 $2,250.00 $2,250.00 $2,000.00 $5,000.00 $250.00 $3,000.00 $200.00 $16,930.00 ----- ----- $8,600.00 $9,200.00 Work To Be Completed Sub -Total: $74,055.00 Miscellaneous & Contingencies (10%): $11,108.25 Surveying (1.5%): $1,110.83 Engineering & Construction Inspection (7%): $5,183.85 I TOTAL: $91,457.93 This opinion of probable construction cost was prepared for project security planning purposes. Actual costs may vary due to refinement of project scope, contract requirements, contractor availability, and market fluctuations. Above cost estimate does not include potable water lines which are to be covered under the ZAO Engineering cost estimate for site work. I 1 .refs ©rifyl ,eC'a«eple 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $0.00 $0.00 $0.00 a '' 3051- v 37 5/16/2011 M_\CREjobfiles1777-Strong Subdivision\Cost Est StrongRevised 12212010.xls Page 1 Alpine Bank Date of Issue: Amount: Number: Expnation Date: APPL ICANT: BENEF 1CIARY: Rifle 0o East am sneer Ririe, Colored° 81650 970-625-9610 Fox 970-625 9616 IRREVOCABLE STANDBY LEITER OF CREDIT AUGUSI 10.. 2010 $75,323.00 4160239433 AUGUST 10, 2011 UNA DEVELOPMENT, LLC BOARD OF COUNTY COMMISIONERS OF GARFIELD COUNIY, PURPOSE; SUBDIVISION IMPROVEMENTS AGREEMENT Io Whom It May Concern: We hereby establish in Beneficiary s favor, at the request and for the benefit of Applicant, our Irrevocable Standby Letter of Credit in an amount not to exceed $75.323.00 (U.S. $75.323 00) The purpose of this letter is to secure the performance of and the compliance with the Agreement, by and between, Applicant and Beneficiary Beneficiary shall promptly notify Bank when a default or event of default of said agreement occurs Your notification shall include any notice or order required to be sent to Applicant pursuant to the agreement. Notice shall be by telephone and in writing to: ALPINE BANK RIFLE AT IENTION: KARRIF FLETCHER 100 EAST 4nr STREET RIFLE, COLORADO 81650 970-625-9610 We hereby agree to honor drafts drawn under anis in compliance with the terms of this Letter of Credit if dory presented to a Joan officer at 100 EAST 411 STREET, RIFLE, COLORADO, durmg normal business hours on or before the expiration date Partial drawings are permitted. This Letter of Credit is not transferable The conditions for payment of any draft drawn against this Letter of Credit are as follows: 1. Receipt by Bank of Beneficiary's manually signed statement by an authorized signatory certifying that Applicant has failed to perform with or comply in accordance with, the provisions of said agreement by and between Applicant and Beneficiary, and stating the dollat amount of the default. www alpinebonk com Alpine Bank 2.. Presentation of the original Letter of Credit to Bank, endorsed on the reverse side with the words: "BOARD OF COUNTY COMMISIONERS OF GARFH TLD COUNTY." in the amount requested, then manually signed by an authorized signatory.. This Letter of Credit shall be governed by Aiticie V of the Uniform Commercial Code as in effect in the State of Colorado on the date of issue. This Letter of Credit sets forth in full the terms of our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by any document, instrument or agreement referred to herein, or in which this credit is referred to, or to which this credit relates: and no such reference shall be deemed to incorporate harem by reference any such document, instrument or agreement. ALPINE BANK B KARRIE FLETCHER, VICE PRESIDENT www olpinebonk corn Alpine Bank ■III t viehi I ll4a 6id'Lo1u41ktrikim'IW+R mi+111111 Reception#: 792947 10/13/2010 05:12:26 PM Jean Rlberico 15 of 16 Rec Fee:$0.00 Doc Fee:0.00 GARFIELD COUNTY CO Rifle 100 East 4th Street Rifle, Colorado 81650 970-625-9610 Fax 970-625-9616 IRREVOCABLE STANDBY LETTER OF CREDIT Date of Issue: AUGUST 10, 2010 Amount: $75,323.00 Number: 4160239433 Expiration Date: AUGUST 10, 2011 APPLICANT: UNA DEVELOPMENT, LLC BENEFICIARY: BOARD OF COUNTY COMMISIONERS OF GARFIELD COUNTY. PURPOSE: SUBDIVISION IMPROVEMENTS AGREEMENT To Whom It May Concern: We hereby establish in Beneficiary's favor, at the request and for the benefit of Applicant, our Irrevocable Standby Letter of Credit in an amount not to exceed $75,323.00 (U.S. $75,323.00). The purpose of this letter is to secure the performance of and the compliance with the Agreement, by and between, Applicant and Beneficiary. Beneficiary shall promptly notify Bank when a default or event of default of said agreement occurs. Your notification shall include any notice or order required to be sent to Applicant pursuant to the agreement. Notice shall be by telephone and in writing to: ALPINE BANK RIFLE ATTENTION: KARRIE FLETCHER 100 EAST 4TH STREET RIFLE, COLORADO 81650 970-625-9610 We hereby agree to honor drafts drawn under and in compliance with the terms of this Letter of Credit if duly presented to a loan officer at 100 EAST 4TH STREET, RIFLE, COLORADO, during normal business hours on or before the expiration date. Partial drawings are permitted. This Letter of Credit is not transferable. The conditions for payment of any draft drawn against this Letter of Credit are as follows: I. Receipt by Bank of Beneficiary's manually signed statement by an authorized signatory certifying that Applicant has failed to perform with, or comply in accordance with, the provisions of said agreement by and between Applicant and Beneficiary, and stating the dollar amount of the default. www.alpinebank.com �!: r_,,, , NaYcl„II P.rvr Alpine Bank 41 1111 G1hi,iK41 1i'01Ct IRR 1 II Reception#: 792947 1011312010 05:12:26 PM Jean Alberico 16 of 16 Rec Fee:$0.00 Doc Fee:0.00 GARFIELD COUNTY CO 2. Presentation of the original Letter of Credit to Bank, endorsed on the reverse side with the words: "BOARD OF COUNTY COMMISIONERS OF GARFIELD COUNTY." in the amount requested, then manually signed by an authorized signatory. This Letter of Credit shall be governed by Article V of the Uniform Commercial Code as in effect in the State of Colorado on the date of issue. This Letter of Credit sets forth in full the terms of our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by any document, instrument or agreement referred to herein, or in which this credit is referred to, or to which this credit relates; and no such reference shall be deemed to incorporate herein by reference any such document, instrument or agreement. ALPINE BANK !a""__, KARRIE FLETCHER, VICE PRESIDENT www.alpinebank.com 4 Primed on Recycled Nce. July 11, 2011 George Strong P. 0. Box 808 Silt, CO 81652 BUILDING & PLANNING DEPARTMENT RE: Completion of Subdivision Improvements for the Strong PUD / Subdivision Dear George, I am sending you copies of the recorded documents for your records that indicate the required subdivision improvements have been completed for the Strong PUD / Subdivision. As a result, the County Commissioners have acknowledged their completion and full satisfaction of the security requirements. Therefore, this action by the commissioners authorized the release of the Letter of Credit being held by Alpine Bank in the amount of $75,323.00. Please don't hesitate to contact me with any questions or comments. Very truly yours, Fred A. Jarman, AICP "V-7 Director, Building & Plannin: epartment 108 Eighth Street, Suite 401 • Glenwood Springs, CO 81601 (970) 945-8212 • (970) 285-7972 • Fax: (970) 384-3470 ■!I! Pi%VI®I III Reception#: 804848 07/06/2011 03:13:54 PM Jean Rlberice 1 of 3 Rec Fee:50.00 Doc Fee:0.00 GARFIELD COUNTY CO ACKNOWLEDGMENT OF SATISFACTION SUBDIVISION IMPROVEMENT AGREEMENT STRONG SUBDIVISION Recitals 1. UNA DEVELOPMENT, LLC, [hereinafter "Owner") entered into 2 Subdivision Improvement Agreement (SIA) with the Board of County Commissioners of Garfield County, Colorado (hereinafter "Board"), recorded as Reception No. 792947 of the Garfield County records on October 13, 2010, for the - improvements of the STRONG SUBDIVISION. 2. An irrevocable Letter of Credit was delivered to the County in the amount of $75,323.00 in order to secure the subdivision improvements to be constructed by the Owner as required in the SIA. 3. As verified in the attached statement from Chris Manera, PE of Colorado River Engineering, Inc. dated May 16, 2011; all the remaining improvements have been completed consistent with the improvements described in the Subdivision Improvements Agreement. Acknowledgement NOW THEREFORE, at the request of the Owner, and in consideration of the premises and the prior agreements contained in the 51A, the BOCC hereby: 1: Acknowledges full satisfaction of the security requirements of the SIA; 2. Authorizes the final release of Letter of Credit #4160239433 being held by Alpine Bank for the amount $75,323.00. BOARD OF COUNTY COMMISSIONERS ENGiNEERING tD-Rroll'h ri:o Sim/1g Mb Q0Drat .Srittrtlg PO Bo x SO8 Silt, CO '81:652 Viaerriaih:Strong..pds.het. 11111 FAVW,LA,vr141,LeCrirly'lllitrilril 11111 Recept ant# : 804848 07/05/2011 03:1854 PM Jean Plbericc 2 of 3 Rec Fee -S0.00 Doc Fee:0 00 GRRFIELD COUNTY Co May. 2011 RE -Job 777 -- Strong PUD - Rublit Itaprovernebts Der 6torgef Colorado River. Engineering: int. {CRE )- has inspecied the CbristTuctiiary of Pablie Imp_my.ena-Ols at the StrOhTaID and has fond theib to bein Oortf-orlance wO, the a_ppfoved p3 ans.. This:letter shall serve as certification tha or has been .co..aipteted. The attach, Table .1 i&ntfies the woik tasks that ere completeci ,as pEat of. our ir14)ect+dji'wOrk. CRE has Isc made reco=*4.mmidaticiris on itripleitier5tatiort'Of.,Ortratei- B4? ;and reveg..:etati on 41P.N't6 been inaglenierit6d: The. "Cettificatiot orTthe :Crtructon :crf'a ppititcreci. Fotin for the water sWiihas. been fQr\--Yardodtd the Colorado il).epatiii.ent of P-OLic Health arid Environm&-„Di or fti6r ii&C6td.S. If.)lota iae any qt_ iesiions,ji4ease.rdonat:beSitate to dal970-62-5-493 . •- Chris- Mane -4:4 P.E. Cc: cr b.4-Acftp:ffatinVri7-..Strront):S..itafi,vislart\PubtrImpr-nverr,N-Isz3- 3 -6 ,2t 11 dac P.Q. Box )301 • Rifle, CO 81650 • Tel, -970-:625-4933 • Fax 970-625-4564 Table 1 - Strpq PLR) - PQ,tAblo NiVator..Sygtoto :4. pup frniirbettlerit§.. ttlbitiiiiiiSion iirriprOiiiroMOIltls ,i! UnitS! Cfnjt cot I Cot Work to _Bei.Corrrp(eted iri"9irieer, Etit-Iiiaie OfiPrQtable 'Cipr.IStructiririi000iiSii-! liObitritift Water Disinfectyetaiq irundfos £095 Pump . ,.. POleatrohiCiternicai Feed Pump Well Pump Conti -al " . .. . 65,081 NSF Chlorine Solution Tank: ,. .,. „...„. Chlorine sotutibn Injectors• .. . ,. Test Kit \Ne—ter Meter:: MiSt PqmphoueQ Plurtit7ip9 Fittings Oiiir'ipihoUseibectribal Parts ,C11sconneot, heateri, lights ei.b), •-• StorageTanke - 1 100 pal NSE Purripheuse & Doors . . Plumber t:-.:lectricien Certified POrnp fnstallor Well . Weill Pad , ., Well Grundfos Sip pump Meter Exiting th.iilding i ..... .. ._.. .....,. . ... zo, Entopoorp estit-0,1os Water Linqs. 660 -feet, meter, pits Telephone EleCtric koadway Drainage 1\lblt,ellaneous 'F,"n6Ineerliiigi,&CoristrtictionilnspeCtion This opinion of probable construction cost was-prepred fQr project May vary due to refinernent of project scope, conteect requirernents, fltrctuation. Above cot estittate does not ihdjude potable:Water riqineerirlgioost etirt-I.13te for Oe work. 1 ieldek ! .271each 1iireaCh 1 :eacifii :aj each iTeieh 1 LS 2ach , . . 200isct ft 30!hra 30! hris .. .„. 20ihrs liedoli 1!eacti , 1 eachi 1 eachl s. ..., 1,LS . t i ii 1711-1., • • , 8, (1--,iontin.enclieS ..... .... ...... SUrVeY1116(1.5%);• security planning contractor aVailability,. lin6s.V,i/hicri are to • .. . srci.qp,ocii $3,0po;00- _ , ,•... _....... $400.0Cfl i 8'.0.0,pQ $500 00 $S00 00 -$100.00i $100 00 ..„ .„ ...,. .., . , $100 00' $2.00;:00 $7.66 -1,7.,66 $1,206.00•; 'f-1--_5'ab "Qo $1 ii600.06! $1:,gpo;oo, $1500.00 i $8,060 00 .... $70.00! $14,000,.00 • . , ii$7e.66,, $2,250,600%. $76.00 i i$,i,250...00 $160.001i $6000.qQ1, $5.,000i00, $250.001. $250i00 $0,00C,06! $;0.90,00 ' $200 00 ' $2t10 00 .$16,936,00 .. , . . . _ .. . $8,600.00 . J:iclia.bo i sub;Catal:; '$7.405.5,00 • .,i (10 i • $11,108..2.6 %1 ......,...,.. !, .., -._ _..........., i11O.8.3 (1-641 ¶1t33.t3 . ,, ,., .... .0.% . .,.._ .. ...____.... 020,---- 0% , ---- 0i0 -1,. -ii : . -- 616 ........ .„ ... .. ..... 0"4 ! . 0% . _. __.• - .,.,, ., o% „. .. , . ., -- 0'),i—ii ...,.:„ . poia , _. . .....—. ,. . - — -- ' - ‘ , . • - - . . ... . _. - , ... . . .. . .. ., . . .: .. ... ..,. $0.06 ,,,•,,,,•,,, $0 00 $0.00 sliWtSZ TOTAL; ', 9-1,..(1 ' -0 1 it ,c),,•,,,•!,.? iriv-ii v -4; • .. 4 .--•.' • o , , , n ).,; kre 1 purposes. ,Actual cpste end market be cevereduhder the ZAO 1 4 0,, . i. -rAk. . .. .....,- 5/1012011 MACREJobtiles\777-Strong SubdivISidrA0osIESt StrohgRtVitecf 12212010.xls Patjo 1 •iiH...RESOURCE ..1... ®■IIA■■ E N G I N E E R I N G I N C. Fred Jarman Garfield County Building and Planning Dept 108 8th Street, Suite 201 Glenwood Springs CO 81601 RE: Strong Subdivision — CR 300 and Highway 6 & 24 Intersection Improvement Cost Sharing Dear Fred: August 30, 2010 This memorandum presents an updated recommendation regarding a "fair share" of the costs for the proposed road improvements at the Highway 6 & 24 and County Road 300 intersection near Parachute/Battlement Mesa for the Strong Subdivision. The updated recommendation is based on the current opinion of probable cost prepared by High Country Engineering, Inc. (HCE) for the current proposed intersection design, the current traffic study of the intersection prepared by Kimley-Horn and Associates, Inc. (Kimley- Horn) the Strong Subdivision traffic analysis prepared by Drexel, Barrel & Co (DBC), and the July 20, 2010 letter from DBC regarding cost sharing of the intersection improvements. The relevant data from each report is presented below followed by an analysis of "fair share" for the Strong Subdivision. BACKGROUND Travelers Highlands Subdivision (TH) was originally required by CDOT to make improvements to Highway 6 & 24 where the entrance road lines up with CR 300 at the intersection. These improvements included a deceleration lane for a right turn into TH and an acceleration lane for a right turn out of TH with an estimated cost of $175,000. The Strong Subdivision located on CR 300 triggers a new CDOT access permit at the Highway 6 & 24/CR 300 intersection. The new access permit requires improvements to the intersection to meet near term and future 2030 traffic. DATA Based on the March 26, 2010 Kimley-Horn report, the 2030 total a.m. and p.m. peak hour traffic at the intersection is 1,209 vehicles per day. The total a.m. and p.m. peak hour traffic turning onto and off of CR 300 at the intersection is 655 vehicles per day. Based on the Drexel, Barrell & Co traffic study for the Strong Subdivision, the year 2030 total a.m. and p.m. peak hour traffic turning onto and off of CR 300 at the intersection is 643 vehicles per day which is within 2% of the Kimley-Horn analysis. However, the total a.m. and p.m. peak traffic is estimated at 1,000 vehicles per day. The primary difference is traffic at TH, which we believe is more accurately estimated in the Kimley-Horn Report. The TH year 2030 total a.m. and p.m. peak traffic is 569 vehicles per day. The year 2030 total a.m. and p.m. peak hour traffic from the Strong Subdivision is 64 vehicles per day, of which 58 vehicles per day will use the Highway 6 & 24/CR 300 intersection. Consulting Engineers and Hydrologists 909 Colorado Avenue • Glenwood Springs, CO 81 601 • (970) 945-6777 • Fax (970)945-1137 Fred Jarman Page 2 August 30, 2010 The current preliminary opinion of probable cost for the intersection improvements prepared by HCE is $1.5 million. ANALYSIS The approach to determining the "fair share" contribution by the Strong Subdivision for the intersection improvements was previously identified in RESOURCE's March 26, 2010 letter. This approach is to take the total project cost, subtract out the TH improvements and multiply the ratio of the Strong 2030 traffic divided by the total 2030 traffic turning onto and off of CR 300 at the intersection. Based on the new information, it is clear that the TH share of the intersection improvements is more than $175,000 and additional elements of the intersection improvements are associated with TH traffic. Therefore, trying to create a complicated formula to account for TH $175,000 is not possible. Utilizing a pro -rata share of traffic volume, the TH share of the improvements would be 47 percent (569/1209) based on the Kimley-Horn report. As opined in the DBC July 20, 2010 letter, the Strong Subdivision share should be based on total traffic, but also on total cost. The Strong Subdivision intersection traffic, 58 vehicles per day, is 4.8 percent of the total intersection traffic, 1209 vehicles per day. This equates to $72,000 (0.048 times $1.5M) for the Strong Subdivision. The actual share for the Strong Subdivision will be 4.8 percent of the actual cost of the intersection project. Should you have any questions or need additional information, please do not hesitate to call. Sincerely, RESOURCE ENGINE RING, INC. Michael J. ion, ''.E. Water Re urces Engineer MJE/mmm 885-59.0 RESOURCE NGINEERING INC wr Engineers/Surveyors Boulder Colorado Springs Denver Grand Junction Greeley Steamboat Springs 1350 17th Street, Suite 210 Denver, CO 80202 720.214.0955 720.214.0959 Fax Drexel, Barrell & co. July 20, 2010 Mr. George Strong Strong Lumber and Specialty Log Products, Inc. PO Box 808 Sawmill 7190 Hwy 13 Silt, CO 81652 (970) 625-0777 stronq(a.sopris.net Subject: Strong Subdivision — Calculated percentage of site traffic at the intersection of Highway 6&24 / County Road 300 Dear George, Per your request, Drexel, Barrell & Co. has reviewed the information you provided us regarding the intersection improvement costs and the calculation of "fair shares". Based on the methodology outlined in Resource Engineering's letter to Fred Jarman and utilizing a percentage of traffic to determine the costs per party, we believe that your fair share percentage is actually 6% and not 9%. The 9% number in Resource Engineering's letter does not accurately reflect the total traffic through the intersection. That number was derived by only counting the traffic volume that exited or entered CR 300. Because the entire intersection is being improved, the percentages should be based on all of the traffic traveling through the intersection. Our 6% calculation is based on the following data that is included in the Traffic Study: The Total Volume of Traffic projected in the intersection in Year 2030 is: AM Peak Hour: PM Peak Hour: 555 vehicles 445 vehicles The amount of traffic from the Strong Subdivision projected to enter the intersection is: AM Peak Hour: PM Peak Hour: 30 vehicles OR 5.41 % of the total AM traffic 30 vehicles OR 6.74% of the total PM traffic. If we average the percentages of AM and PM Peak Hours, your average percent impact is 6.075%. EXHIBIT George Strong — Strong Subdivision — Intersection Improvements July 20, 2010 Page 2 Please let me know if you have any questions regarding this letter and/or analysis. Sincerely, Drexel, Barrell & Co. Ann T. Bowers, P.E., PTOE Transportation Department Head