PRESENTATION TO THE FORT ORD REUSE AUTHORITY BOARD OF DIRECTORS AUGUST 9, 2013 Capital Improvement Program FY 2013/14

Recent Actions Administrative Committee (AC) reviewed modified CIP and recommended CIP funding and project placement revisions AC reviewed modified project placement and FORA’s response to a comment letter received outlining various CIP concerns. AC unanimously recommended FORA Board adoption of the FY 13/14 CIP.

Absorption assumptions: Development forecasts accepted as submitted by land use jurisdictions (LUJs) Cost indexing: 20-City average cost index applied, consistent with every previous CIP reprogramming Transportation/Transit: Contingencies, project cost and variations will be reviewed for appropriateness prior to FY 14/15 CIP reprogramming Habitat Conservation Plan: The HCP endowment is fully funded by FY 19/20 with acceptance of LUJ forecasts Contingencies: Remaining contingencies (previously reduced from $120M to $40M) will be reviewed prior to FY 14/15 CIP reprogramming FORA Response

Water augmentation: Water/Wastewater Collection Systems funding has been accelerated to more accurately reflect demand Surplus fund balance: Indicates the fee might be lower in a future fee recalculation and will be addressed prior to FY 14/15 CIP reprogramming CIP narrative: Has been enhanced to address questions raised by the Board, AC and others FORA Response

Proposed timeline  December 2013: FORA Board considers EPS contract for CIP Review - Phase III Study/fee calculation  January 2014 – April 2014: Phase III Study/fee calculation proceeds in lock-step with FY FORA CIP reprogramming  May 2014: Draft FY FORA CIP and Draft Phase III study/fee calculation results presented to Board as information items  June 2015: FY FORA CIP and Phase III study/fee calculation results presented to Board as action items Next Steps: CIP Review Phase III

Draft Phase III scope to include:  Review CIP obligations/costs (transportation/transit, habitat management, contingencies, etc.)  Recommend adjustments to CIP obligations/costs based on thorough review  Review basis for Construction Cost Index (CCI) selection and recommend appropriate index  Re-evaluate land sales, property taxes, and other non-CFD funding sources  Complete 2 nd FORA fee formula calculation based on FY FORA CIP CIP Review Phase III Draft Scope

Recommended Action Adopt the FY 2013/14 Capital Improvement Program