HomeMy WebLinkAbout20111518.tiff . . : .
HOLLAND &HART., n
THE LAW OUT WEST
June 14, 2011
VIA E-MAIL AND USPS
David Bauer, P.E., CFM
County Engineer - Development
Weld County
Public Works Department
1111 H Street, P.O. Box 758
Greeley, CO 80632
Re: Suncor USR-1709 Improvements Agreement (the "Agreement")
Dear Mr. Bauer:
Thank you for your recent correspondence commenting on our proposed revisions to the
Agreement.
As we have been exchanging drafts and comments on this proposed Agreement with very
little compromise, I think it may be most productive for us to address several fundamental issues
which appear to be sticking points in our discussions. If we are able to get past these issues in a
mutually agreeable fashion, we should have a basis for completing the Agreement. The
fundamental issues, from our perspective, are as follows:
1. Suncor and the County both need a clear and mutually acceptable methodology for
when the road improvements to WCR 20 will be required, and how the "proportionate share" of
those improvements will be allocated to Suncor and the County. Suncor's draft of the
Agreement attempted to create a methodology for determining when traffic counts on WCR 20
would trigger paving on WCR 20 between the project entrance and Highway 85. Consistent with
the Board of County Commissioners' direction, we also attempted to provide a methodology for
calculating Suncor's proportionate share of those improvements and a process by which the
parties could agree on these very important terms. The County, in its response, insists on making
these decisions unilaterally, and without input from the Applicant. This puts Suncor at
significant financial risk and is not acceptable.
2. Suncor needs an assurance that the County will pay its "proportionate share" of the
costs to pave WCR 20 before Suncor is required to commence design and construction of that
improvement. County staff has insisted on deleting Suncor's proposed language requiring the
County to appropriate and set aside funds sufficient to pay the County's proportionate share
before Suncor is obligated to commence design and construction of the WCR 20 improvements.
Staff has instead insisted on reverting to their proposed language which provides no procedures
whatsoever for payment of the County's share of the project costs and provides absolutely no
4`b` 2011-1518
w PhoneHolla [3&H95-LLP
00
�� Phone[303]295-8000 Fax[303]295-8261 www.hollandhart.com O Zq
`• �� 555 17th Street Suite 3200 Denver,CO 80202 Mailing Address P.O.Box 8749 Denver,CO 80201-8749
L I
V Aspen Billings Boise Boulder Cheyenne Colorado Springs Denver Denver Tech Center Jackson Hole Salt Lake City Santa Fe Washington,D.C. O
HOLLAND &HART..o in David Bauer, P.E., CFM
June 14, 2011
THE LAW OUT WEST Page 2
assurances that the County will live up to its obligations to pay its proportionate share. We
believe that this language is directly contrary to the direction provided by the Board of County
Commissioners.
3. Suncor cannot agree to maintain nearby roads in perpetuity and to post a perpetual
bond to secure that obligation. Suncor has acknowledged its obligation to repair damage to
adjacent County roads caused by Suncor's operations, other than normal wear and tear, for a
reasonable time after its project commences operations. However, staff's insistence that this
obligation be perpetual and be secured by a perpetual bond or letter of credit is unreasonable and
unacceptable. Once the improvements to WCR 20 are complete, or once the project is
operational and is generating increased property tax revenues for the County based on Suncor's
commercial use of this site, maintenance of County roads is no longer Suncor's obligation and
properly belongs to the County. County staffs attempt to impose this perpetual obligation on
Suncor is inappropriate.
At our hearing on this permit before the Board of County Commissioners, we discussed
the possibility of a work session with the Board if Suncor and staff were not able to come to
terms on an Improvements Agreement. We would like to pursue that course, and ask that a work
session be set with the Board to discuss and hopefully resolve these issues.
Sincerely,
/ /S
James B. Borgel
of Holland & Hart LLP
cc: Board of County Commissioners (via USPS)
Bruce Barker, Weld County Attorney (via e-mail and USPS)
5100868_2.DOCX
Hello