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HomeMy WebLinkAbout770480.tiff ,eld County Council January 31, 1977 CONFLICT. OF INTEREST QUESTION OF JACOBUCCI Information sources contained herein are from material supplied by the District Attorney's office, Mr. Jacobucci 's written statement to the Council, minutes of commissioners, summary judgement of Home Rule, and personal knowledge and memory of statements and other information given. Weld County has in past years obtained fill dirt from land owners in Weld County. Although, to our knowledge, this fill dirt has never been paid for with actual dollars and that in every instance the land owner has received a form of compensation. To accept the definition of the word "donation" as a free contribution and the definition of the word "gift" as something given without compensation indicates that fill dirt has never been a donation or a gift to Weld County from land owners. In every case known to us, fill dirt has been arranged for on the basis that the county would receive the dirt by performing a service for the land owner by either removal of a hill or knoll, enlargement or digging of a pond, or removal of blow sand from the land owner's property. Often the work performed by the county to obtain this fill dirt would cost the land owner many thousands of dollars if it were performed by a contractor plus another additional cost of disposal or spreading of the dirt removed from the hill, pond or fence row, Not only does the land owner realize an immediate savings and benefit, he also receives improvements to his property which at times greatly increases the value of his property. We have never heard of a land owner making an outright gift or donation of fill dirt whereby the land owner received little or no benefit. 770480 - �oi;: ,,c o;. question Although agreements between Weld County and private land owners for fill dirt are verbal, they are probably legal binding contracts to the effect that the County could probably be sued and held liable for not properly fulfilling their part of the agreement or for damage done to the land owner's property. We also believe that this method of obtaining fill dirt is understood and accepted by the land owners and that they understand and accept the fact that the county cannot become involved in removal of all the blow sand, digging all the ponds, or removing all the knolls that the land owners in Weld County desire, do, and pay for each year. They fully realize that this benefit only applies to those who have land close to an area where the county needs fill dirt: • Therefore: In regard to fill dirt obtained by the county from Mr. Jacobucci 's land, it is our opinion and conclusion that the actual cost to the county for obtaining and spreading this fill dirt on road Number 2 does not reflect the value received by Mr. Jacobucci nor would it reflect the actual cost to Mr. Jacobucci had he chosen to hire a private firm to do this work. It is further our conclusion and opinion that this fill dirt was not a gift or donation, but that it was a verbal agreement that the county would receive the dirt in exchange for removal of a fence, the blow sand in and around the fence, enlargement of a lake, and removal of dirt around the lake. January 1, 1976 the Weld County Home Rule Charter became effective. The Charter created five departments with divisions allowed in each department and further designated that each commissioner would be responsible as a coordinator - u: ,.n—rest Question for one department. The commissioners did establish these five departments and also designated a commissioner as coordinator of each of these departments and further designated an alternate commissioner for each of the five depart- ments. This is recorded in the January 5, 1976 Board minutes. It is our understanding that Mr. Jacobucci was the coordinator for the department of communications services and also the alternate for the Department of Engineering Services. Commissioner Roy Moser was designated the Coordinator of the Depart- ment of Engineering Services. Road and Bridges is listed as a division of the Department of Engineering. Generally speaking the commissioners minutes of proceedings during 1976 indicated that these departments were accepted and that' the commissioners reported to the board as coordinators for these respective departments. We do not recr:11 ever reading in any of the board minutes during 1976 that Road and Bridge had been removed as a division of Engineering Services or that any of the commissioners had been designated as supervisors, bosses or "what have you" over specific road districts which coincided with commissioner districts. We do recall that at a work session of the commissioners attended by the County Council there was a discussion regarding Road and Bridge and that the three district commissioners indicated that they were directly responsible for roads and bridges in their respective districts and did indicate their intentions to continue to personally oversee these districts regardless of the protests of the commissioners at large and the protests of the County Council. Although no formal action was ever taken by the board to allow these three commissioners to act as supervisors or bosses in their respective districts, it is our belief that they did act in this capacity during 1976. Although Civil Action No. 28085 relative to the validity of some provisions of the Home Rule Charter may have been a valid reason for not following the intent of the Charter in regard to the operation of road and bridge, the summary judgement signed by Judge Berhman July 20, 1976, Part III states: "The Home Rule Charter for Weld County establishes a valid and lawful frame of government for Weld County,etc." It would seem that this summary judgement should have removed any doubt existing in the minds of any of the commissioners in regard to the validity of the charter and that positive action by all should have been taken to abide by the provisions of the Home Rule Charter. Yet, indications were that the road and bridge division continued to be bossed as three separate road districts until January of 1977. Mr. Jacobucci as commissioner from district two apparently continued to participate in the decision process as the person in charge of road and bridge in district number two. Material furnished to the council by the district attorney and also Mr. Jacobucci 's statement to the council indicates that he was personally involved not only in deteriining the building of Weld County road number two but also in the effort to locate fill dirt and the decision as to where to obtain the fill dirt. Report on Vic Jacobucci Investigation, October 14, 1976, from the Office of the District Attorney: "On October 8, 1976, I talked to Frank Smith, county engineer, about the work on Jacobucci 's farm. He told me that earlier Vic had talked to him about getting the road paved by his house, but he didn't want to cause a fuss about it, so Frank said that he would recommend the construction after consulting with Adams County, who adjoins part of this road. Adams County recommended the paving and that they would pay for their part if Weld would do it. Adams sent a letter requesting Frank to recommend building the road and Frank wrote and said they would split the cost on building such a road. " "Frank and Don Morgan talked about how to get the dirt and Don said that he would look for the dirt. Don found some dirt ten or twelve miles away and also found some from a neighbor. Vic told Frank that he was going to do some work on his reservoir and if the county would do it for him, he would give them the dirt. All parties knew that there was going to be a fence that had to be taken out." ' rage 5 - Conilict of j• 'crest Question "Morgan also indicated that he was aware that the new holding pond was anticipated to be used by Jacobucci in conjunction with a sprinkling system on his farm. Morgan indicated that they would get an accounting number for this project, but the work on Jacobucci 's farm would be done under a "miscellaneous number" and not a regular road number. Frequently, they do get regular numbers for work on • people's property. " Victor Jacobucci 's Statement to Weld County Council, January 19, 1977: "In July, 1976, our County Engineer, Frank Smith, showed me a letter from Mr. Ron Meyer, Deputy Director of Public Works of Adams County, which stated he wished to upgrade and oil Road r2. " "The area involved was in Adams County, running fiunLochbuie west for two-and-a-quarter miles -- to the spot where asphalt already existed on Road 42. The letter asked Weld County to finish its own remaining four miles of unimproved road from Quebec ,Street to 1-25. Doing this would result in an overall improvement by eliminating much of the traffic then traveling through downtown Brighton. It would provide a convenient and comfortable alternate route. (Downtown Brighton traffic eventually ends up on Road W2 when it reaches 1-25. ) The letter pointed out that ' if Weld County completed its four miles, then traffic could travel east-west in a straight line on a completely asphalt road between I-76 and I-25. Because Road W2 is also Baseline Road out of Boulder and provides access to the mountains, the decision was made to proceed with the upgrading of the road." Conclusion and opinion: The decision to rebuild and pave a road past, or to a commissioner's home when the commissioner has the authority to make such a decision or have any voice in such a decision would in our opinion be a conflict of interest. Such decisions should receive full review by the board and the commissioner whose home is involved should abstain from such review and final decision process. It is our opinion that the board did adopt on January 5, 1976 the five departments designated by the Charter and that they did appoint the coordinators of these departments; therefore, it is our further opinion that Mr. Jacogucci 's rights, powers, authorities in relation to road and bridges in Weld County were only that of an alternate to Mr. Roy Moser, who was coordinator of the Engineering Department and the division of road and bridge and the subsequent powers, duties authority prescribed by the Charter, board and statutes. H - r;ont llct .;f I L.:m IN)ry: Jt, i , ;ease our opinion LL.it he should have -,,;keal a ni_] 'lanu f ron the `.nuncil (Charter Section 16-?) anu also asked for a complete retie:: by the HO:)rd. It is our belief and opinion that: l ) Mr. Jacobecei 's action: worm soosibly in Li ?lation of State statute 111-di-•J04 (s.) and (c) - 'rirst degree official. misconduct. (1) A public servant conceits first degree official :misconduct if, with intent to obtain a ldmiebit for himself or maliciously to cause harm to another, he know: irdly: (a) Summits an act relating to his office but constitutirin an unauthorized exercise of his official function; or. . . (c) Violates any statute or lawfully adopted rule or regulation relating to his office. " and State Statute 1£'.-f?-30S - "Failing to disclose a conflict of interest. (1) A public servant commits failing to disclose a conflict of interest if he exorcizes any substantial discretionary function in connection with a government contract, purchase, payment, or other pecuniary transaction without having given seventy-two hours actual, advance written notice to the attorney general , or to the cgoverning body of the government 'rhich employs the public servant, of the existence of a known potential conflicting interest of the public servant in the transaction with reference to which he is about to act in his official capacity. (2) A "potential conflicting interest exists when the public servant is a director, president, general manager, or similar executive officer or owns or controls directly or indirectly a substantial interest in any nongovernmental entity participating in the transaction. • (3) Failing to disclose a conflict of interest is a class 2 mis- demeanor. 2) Mr. Jacobucci represented the county in an agreement to perform certain services and also represented himself as a land owner to exchange fill' dirt for these services. 3) Mr. Jacobucci had a personal interest not only as a land owner doing business with Weld County but also es .n land owner who desired a better road past his land and that this personal interest was ouch that it did interfere with the unbiased discharge of his duty to the maples and the best interest of the county. Therefore, it is our opinion that a conflict of interest did exist and that Mr. Jacobucci should immediately I]:“nc 7 - Conflict of - ire;t (,uestion ',Son coordinator of i.ho 1.. nni moo ri ;lc Lmnnt aril should not HOT ,.,erg,�, coordi no-LOS or aJ. Lorna to coanlinator of the dopartncuiL o ; hnoinecri fcrvico or divie;ion oC Pc ;id and I+rl (tin for f.ho n naifob,' ul his term. <I0 P - Conflict oft cost Question • EECOMliti DATlIthd TOllOAll LA' COUNTY CC '"ClSSICiliti'.S Mr. Jacobncci be immediately replaced as coordinator of the (Engineering Department and that he shall not serve either as coordinator or alternate coordinator, for the remainder of his Lens, of the Engineering Department or division of Road and Bridge. Full irnplc:nentation of the centralized administration of Road and bridge IIOW. Adopt policy concerning all major road construction whereby it shall be approved by the hoard and whereby the general public shall be notified and have r,l_.i cortunity to speak regarding all major road construction. Adopt policy concerning obtaining fill dirt, gravel or rock from private land owners and open hearings with the land owners in the area of the construction site so all who wish may have the opportunity to donate said fill dirt, etc. Develop a simple, written contract which oxplaino the work or dollars to he exchanged for said fill dirt, gravel or .rock . Adopt policy of keeping a record of manpower and !machine time used and material obtained in these typos of transactions. CC ICL!JSIOII In investigations performed by the District Attorney 's office, infor- mation natimorcra. by time Council ,. the Weld Cornett} Audit report, and the aenernl concern of many of cur citizens indicates a need for a more complete review of Road and Dridee and the Intergovernmental Agency of Yield County. ! \ DISTRICT ATTORNEY WORKSHEET �jl ,1,Z. //- »-7GS 1 y4 -i Howl 3 L ours spent on Jacobucci Farm : i �' / 1 4 L; a.,,, i z °- ��'- 90 hours @ 9.06 = 815.40 Z I G • C.'1. ® Fence Work 30 man hours @ 5.30 = 159.00 (�'�`-. - D-8 Operator 90 hours @ 5.30 = 477.00 °Ice, ,C)z) a:...F 1451 .40 %.,.. If dirt was hauled from our own pit the round trip haul would be '-4 about 55 miles. The rate it cost to run our trucks is about .27 per s mile. It would further take about 3 man hours per round trip at $5.30 per hour. An outside contractor would charge about $40.00 an hour for a D-8 Cat without an operator. Operators run about $8.00 an hour. Over the past 3 years Weld County has paid for gravel and dirt out of only two pits. These are the Lowell Pit, west of Greeley, and a farm pit in New Raymer. Total royalties paid over this period amount to less than $18 ,000. During this period of time Weld County has used material in more than 80 different locations throughout the county. These materials would have cost Weld County hundreds of thousand of Dollars , but were given free of charge for use in building roads in the County. In almost every case Weld County has had to cut down hills , dig out ponds or repair roads in the normal course of removing this ma- terial . In terms of trade off, if it can be called that, there can be no comparison. Weld County has received and consumed many times more in materials than it has given out in services . Attached you will find a list of pits where materials have been taken over the past three years. January 19 , 1977 To the Members of the Weld County Council; At y it request I am appearing before the Weld County Council at their regular meeting on this, the 19th day of January, 1977, in order to present firsthand information concerning my donation of fill dirt to Weld County in connection with the improvement of County Road No. 2 on a four mile segment between Interstate 25 east to Weld County Road No. 17, commonly known as Quebec Street. As a historical matter, Weld County has rarely found it necessary to purchase fill dirt in order to upgrade its roads. Many farmers and ranchers like myself have as a matter of custom donated excess dirt from their property to the county to be used in connection with road repair and construction in Weld County. In the 1930's and again in the 1950's and mid-1960's , large amounts of dirt have shifted on various tracts of land in Weld County which, if removed, would provide some benefit to the landowner. Generally this is the type of dirt that is donated by various landowners to Weld County for the upgrading of roads although in some cases mounds and hills are reduced in order to provide fill dirt and in these cases both the Weld County and the donor can receive some benefit. In 1956 I was requested to donate fill dirt to the county for the purpose of building up the railroad crossing grade on Road No. 2 and at that time I donated a rather large amount of fill dirt from my farm. I did not request any monetary compensation for this donation and the thought of any monetary compensation on behalf of Weld County did not enter my mind when I donated additional dirt for Weld County Road No. 2 in 1976. With regard to the specific information concerning the dirt that I gave to Weld County for the purpose of upgrading County Road No. 2 between I-25 east to County Road No_ 17, I would submit the following• In July, 1976, our County Engineer, Frank Smith, showed me a letter from Mr. Ron Meyer, Deputy Director of Public Works of Adams County, which stated he wished to upgrade and oil Road #2 . The area involved was in Adams County, running from Lochbuie west for two-and-a-quarter miles -- to the spot where asphalt already existed on Road #2 . The letter asked Weld County to finish its own remaining four miles of unimproved road from Quebec Street to I-25. Doing this would result in an overall improvement by eliminating much of the traffic then traveling through downtown Brighton. It would provide a convenient and comfortable alternate route. (Downtown Brighton traffic eventually ends up on Road #2 when it reaches I-25 .) The letter pointed out that if Weld County completed its four miles, then traffic could travel east-west in a straight line on a completely asphalt road between I-76 and I-25. Because Road #2 is also Baseline Road out of Boulder and provides access to the mountains, the decision was made to proceed with the upgrading of the road. In order to properly construct County Road No. 2 on this four mile segment, it was necessary to build up the roadbed preparatory to paving this segment in 1978. This required a rather substantial amount of fill dirt to be obtained on this particular segment to be improved. -2- My farm is located exactly two miles east of I-25 and two miles west of County Road No. 17 or at the exact mid-point of the area which was to be improved. Mr. Don Morgan, Weld County's Road Overseer in District No. 2 , inquired as to whether or not I had any dirt that I could donate to the county in 1976 and I advised him that I did have dirt which could be moved from the west side of my lake which is located in the northwest portion of the quarter section upon which I live. This dirt was dirt that had blown in during the 1960's . Mr. Morgan then examined my property and advised me that I did not have enough dirt to fulfill the needs of the county on this particular job and I then asked Mr. Alex Miller of Dunton Real Estate who owns the west half of Section 36 which is adjacent to my quarter section, and the nature of the inquiry was as to whether or not he would consider giving any dirt from his farm. His answer was "no, " I then called Monty Shaffer, the manager for the farm north of me which is the northeast quarter of Section 36 which is bordered on the east by the Union Pacific Railroad Company right-of-way, She said "yes" that she would donate dirt as did Mr. Herb Small, the District Manager for the Union Pacific Railroad Company in this particular area. Both of them indicated that they would give dirt which had blown in and at times covered fences (as some had covered mine) . A total of approximately 9, 000 yards was received through these two donations. Mr. Albert Sack was also contacted and advised us that if additional dirt were necessary he would also contribute. The initial estimate of blown dirt available from west of the lake site was about 9, 000 yards. At the request of Don Morgan, I further donated an additional 7,260 yards from the lake site itself, of which 4,210 yards came from the lake perimeter, and 3 ,050 yards were enlargement to the -3- lake itself. This resulted in an increase in the size of my lake by approximately 1/2 acre. The lake was not enlarged as an accommodation to me. The lake ended up being enlarged because the county needed still more dirt, and my lake site was the logical place to get it. If the county did not get the additional dirt from my lake site, the county would have had to go several miles to get the additional dirt. According to a tabulation by the County District Overseer, plus an estimate of the West Adams County Soil Conservation District, the total donation from my quarter section was 16,260 yards of dirt. For your further information fill dirt is not an inexpensive item. The most expensive portion of the total cost in obtaining fill dirt is the cost of transportation. Accordingly, the closer the proximity of the site of the donated dirt to the area upon which it is to be used, the lower the total cost to the county. As a matter of fact, it would be cheaper for the county to pay cash for dirt close at hand, rather than get dirt donated free which had to be hauled any considerable distance. The fill dirt that I donated was the closest fill dirt available to County Road No. 2 and was in fact fill dirt that required the shortest haul of all of the dirt that was used in building up and improving County Road No. 2 during the period of time in question. -4- Quite frankly, at the time I decided to donate fill dirt for this road, it never crossed my mind that a conflict of interest might exist under 16-9(3) of the county charter. If I had thought there was a conflict of interest problem, I would have come to you. I have received legal advice on this, and the lawyers disagree as to whether there is a conflict of interest when a county commissioner donates fill dirt to upgrade a county road. So, I am not sure whether this is a conflict of interest question to be reviewed by you. Whether 16-9(3) applies, or whether your general review authority applies , I have tried to give you a description of just what took place and why I did what I did. I believe the facts here speak for themselves -- that in this instance, as well as in all previous instances when I gave fill dirt to the county, the county saved money, and the benefit was definitely in favor of the county. I would like to invite the full Council to arrange to visit my property, view the road and the lake site, and ascertain for yourselves the situation. After your visit, if you have questions, I will be happy to meet with you again. Victor Jacobuypet7Commissioner Board of Weld County Commissioners • -5- BO RD Pd a Oll`°vc 0 F D �um, COUNTY COMMISSIONERS O "gr"47 SCOU COMMISSIONERS • John G. Campbell Pete M. Mlrelez SERVICES BUILDING - James M. Covey 4201 EAST 72ND AVENUE COMMERCE CITY, COLORADO 80022 303-287-0171 COMMUNITY DEVELOPMENT DIVISION July 26, 1976 DEPARTMENT OF PUBLIC WORKS D Mt. Ftank Smith Weld County Eng.Lneet J P.U. Box 578 z)8 Greeley, Coloaado 80631 F� wE' o9/ ID 49/6 „PPr • DeaA Mt. Smith: n°o�(/N1-y °a7 Re: 168th Avenue Apptoaehea on Weld County Site �a�l Paoject 076-3020 A6 diaewA6ed in oun meetiny laa.t Fhiday, July 19, 1976, we ate ptesenily con4t'tucting 168th Avenue Sot apptawimate2y 2 mLtea Saom Himalaya .to Inteaatate 76 (Hwy. 6) . We would like to oak Weld Cotul.ty'e paaticipation in th- 4 project Sao -the constjturticn oS .the Sowt apptoacltea and culveAta on Weld County'4 6Lde US ,the -section line by ei.thet having gout Sotees conattuc1 thee appaoachea of tetmbuius ing Adcun6 County Sot -the woah. Quit eoe,t6 Sot doing .thL5 woth Laing 1975 ave'ucge bid pa,ieea would be as SoUUow6: 96' coatilga ted metal pipe @ $11 .00/St. = $1,056.00 8 Slaked end 6ectiona @ $50.00/each = 400.00 72 -tona aggregate bane coaaze @ $ 8.62/ton = . 620.64 TOTAL - $2,076.64 We would also like .to get yowl apptoxunate timretabte Sot can6ttucti.on oS yowt6ection os roadway between Inteazta.te 25 and Quebec S.t'teet Sot approximately 4 rni.Cea . Completion 06 theoe .two 6eetion4 would paov.ide ano.thet .tie Saorn In-teaatate 25 to I nteaa torte 76. We would appkeci.ate an early kehpanse on .th,ie matte and we Cook 6onwaxd to wonhi.ng with you .in the 6utune. Should you have any que4Zi-onb, please give me a calf at 287-0171 . Si.nce/cely, on Meyers Deputy DiAectox o 6 Pubf i c Wokk6 Highway Division RM:ca cc: Bud Coleman Hello